Agenda packet — Mayor and City Council, August 2, 2023 (part 2 of 7)

RESOLUTION NO. 2023-121

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,

DECLARING ITS INTENTION TO GRANT A GAS

FRANCHISE TO SOUTHERN CALIFORNIA GAS

COMPANY
WHEREAS, California Public Utilities Code Section 6202 provides that the legislative body of a municipality may grant a franchise to any corporation to lay and use pipe and appurtenances for distributing gas under and along public streets within the municipality; and WHEREAS, this City Council has received from Southern California Gas Company, a corporation organized and existing under and by virtue of the laws of the State of California, and engaged as a public utility corporation in transmitting and distributing natural gas for all purposes to consumers in various municipalities and communities in the State of California, including the City of San Bernardino, an application, under and pursuant to the provisions of Division 3, Chapter 2 of the Public Utilities Code of the State of California, for a franchise, which said application states, in compliance with the provisions of Section 6231 thereof, that the purpose for which the franchise therein applied for is desired, is to lay and use pipes and other appurtenances for the transmission and distribution of natural gas for any and all purposes under, along, across, or upon the public streets, ways, alleys and places, as the same now or may hereinafter exist within the City of San Bernardino; and WHEREAS, the term for which the franchise therein applied for is indeterminate, as defined in Section 6264 of the Public Utilities Code; and WHEREAS, the City Council adopted Ordinance No. MC-1149 on August 4, 2003, granting an initial franchise to Southern California Gas Company for the distribution of gas; and WHEREAS, this franchise agreement with Southern California Gas Company expires on September 4, 2023, and the City desires to grant a new franchise to Southern California Gas Company; and
WHEREAS, said application further states that the applicant, if granted the franchise, will pay to the City of San Bernardino, during the life of such franchise, two percent (2%) of the gross annual receipts of applicant arising from the use, operation or possession of said franchise; provided, however, that such payment shall in no event be less than two percent (2%) of the gross annual receipts of applicant derived from the sale of natural gas within the limits of the City of San Bernardino, under said franchise; and
WHEREAS, the City Council finds that it is in the public interest of its citizens to enter into a new franchise agreement with Southern California Gas Company.

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

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Resolution No. 2023-121
Resolution No. 2023-121
August 2, 2023

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

SECTION 2. This City Council under and pursuant to the provisions of Section 6232 of the California Public Utilities Code, does hereby declare its intention to grant to Southern California Gas Company the franchise so applied for; the 6 day of September, 2023, at 7:00 o'clock, PM, at the place where this City Council usually meets, 555 W 6th St, San Bernardino, CA 92410, is hereby fixed as the day, hour and place when and where all persons having any objection to the granting of such franchise may appear before this City Council and be heard thereon, (the time so fixed for such hearing being not less than twenty (20) nor more than sixty (60) days after the date of the passage of this resolution).

SECTION 3. The Clerk of this City Council is hereby directed to publish a notice at least once within fifteen (15) days after the passage of this resolution, in a newspaper of general circulation within the City of San Bernardino, in the San Bernardino Sun, in the words and figures as follows:
“NOTICE OF INTENTION TO GRANT GAS FRANCHISE
TO WHOM IT MAY CONCERN:

Notice is hereby given by the City Council of the City of San Bernardino that it intends to grant, under and pursuant to Division 3, Chapter 2 of the Public Utilities Code of the State of California, known as the Franchise Act of 1937, to Southern California Gas Company, a corporation, a franchise to lay and use pipes and other appurtenances for the transmission and distribution of natural gas for any and all purposes under, along, across or upon the public streets as the same now or may hereafter exist within the City of San Bernardino. The 6 day of September, 2023, at 7 o'clock, PM, at the place where this City Council usually meets, 555 W 6th St, San Bernardino, CA 92410, is hereby fixed as the day, hour and place when and where any and all persons having any objection to the granting of said franchise may appear before this City Council and be heard thereon. At any time not later than the hour so set for the hearing of objections, any person interested may make written protest, stating objections against the granting of said franchise. Such protest must be signed by the protestant and be delivered to the Clerk of this City Council.”
SECTION 4. The term for which said franchise is proposed to be granted is twenty (20) years, as defined in Section 6264 of the Public Utilities Code.

SECTION 5. The grantee of said franchise, and its successors and assigns, will, during the life of said franchise, pay to the City of San Bernardino two percent (2%) of the gross annual receipts of the grantee and its successors and assigns arising from the use, operation or possession of said franchise; provided, however, that such payment shall in no event be less than two percent (2%) of the gross annual receipts of the grantee, its successors and assigns, derived from the sale of natural gas within the limits of the City of San Bernardino under said franchise.

Said percentage will be paid annually from the date of the granting of said franchise, and in the event such payment shall not be made, said franchise will be forfeited.

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Resolution No. 2023-121
August 2, 2023

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SECTION 6. The Mayor and City Council find that this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the renewal of the franchise agreement with Southern California Gas Company does not constitute a “project” for purposes of the California Environmental Quality Act (Pub. Resources Code, § 21000 et. seq.) (“CEQA”) and the State CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.) and, therefore, does not require environmental review. Specifically, under State CEQA Guidelines section 15378, “project” does not include administrative activities or government fiscal activities that do not involve any commitment to any specific project which may result in a physical change in the environment. For purposes of this franchise agreement, the City Council further finds that even if the renewal constituted a “project” for purposes of CEQA, the project would be exempt from environmental review under State CEQA Guidelines section 15301 (Existing Facilities), 15320 (Organization of Local Agencies), and 15061(b)(3), which exempts projects for which it can be seen with certainty will not result in significant environmental impacts. None of the exceptions found in State CEQA Guidelines section 15300.2 to the use of these exemptions are present. The City Council hereby directs staff to file a Notice of Exemption with the County Clerk within five (5) working days of the adoption of this Ordinance.

SECTION 7. 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 8. 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 2nd day of August 2023.

Helen Tran, Mayor
City of San Bernardino
Attest:

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

City Attorney
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Resolution No. 2023-121
August 2, 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. 2023-121,, adopted at a regular meeting held on the 2nd day of August 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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1 LICENSE AGREEMENT

BETWEEN THE CITY OF

SAN BERNARDINO, CALIFORNIA
AND

SOUTHERN CALIFORNIA GAS COMPANY
This License Agreement (“Agreement”) is entered into this 2nd day of August, 2023, by and between the City of San Bernardino, a California municipal corporation, hereinafter referred to as the (“City”) and Southern California Gas Company, a California corporation hereinafter referred to as the ("Gas Company"). City and Gas Company may be referred to herein individually as a “Party” and collectively as the “Parties.”

RECITALS
A. WHEREAS, on September 4, 2003, City granted to Gas Company a franchise to use and lay all pipes and appurtenances necessary and convenient for the operation of a gas utility under, along, across or upon public streets, ways, alleys and places (collectively, “Rights-of-Way”) in the City for the transmission and distribution of gas (“Franchise”).

B. WHEREAS, the Franchise is set to expire on September 4, 2023.

C. WHEREAS, Gas Company has requested that the City grant a renewal of the Franchise.

D. WHEREAS, City and Gas Company are in the process of negotiating the terms to renew the Franchise.

E. WHEREAS, San Bernardino Municipal Code Section 14.04.050 permits City to grant a written revocable license for the continued operation of a franchise that is set to expire within sixty (60) days and for which a renewal has been requested, but not yet granted by City.

F. WHEREAS, pursuant to San Bernardino Municipal Code Section 14.04.050, the Parties wish to enter into this Agreement, whereby City will allow Gas Company to operate under the same terms of the current Franchise on a temporary basis until the terms of the renewed Franchise go into effect.

AGREEMENT
NOW THEREFORE, in consideration thereof and for other valuable consideration as set forth herein below, the Parties hereto do mutually agree as follows:

1. Effective Date. This Agreement shall become effective on the date following the expiration of the current Franchise.

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2 2. Term. The Term of this Agreement shall be for a period of one hundred twenty (120) days or until the renewed Franchise goes into effect, whichever occurs first.

3. Authorization. This Agreement is authorized pursuant to San Bernardino Municipal Code Section 14.04.050.

4. Scope of Agreement. Subject to the terms and conditions contained herein, City hereby authorizes Gas Company to operate under the terms and conditions of the current Franchise, a copy of which is attached hereto and incorporated herein by reference as Exhibit “A.” The Franchise shall remain in full force and effect in accordance with its terms and is hereby ratified, approved, and confirmed.

5. Amendment of Agreement. This Agreement may not be amended except pursuant to a written instrument signed by both Parties.

6. Notices. All notices, demands, requests, consents or other communications that this Agreement contemplates or authorizes shall be in writing and shall be personally delivered or mailed or sent by reputable overnight courier to the respective Party as follows:

City Address:

City of San Bernardino
Vanir Tower, 290 North D Street
San Bernardino, CA 92401
Attn: City Manager
Gas Company Address:

Southern California Gas Company
555 West Fifth Street
Los Angeles, CA 90013
Attn: Senior Vice President, Distribution Operations
Either Party may change its address by notice to the other Party as provided herein. Communications shall be deemed to have been given and received on the first to occur of (i) actual receipt at the offices of the Party to whom the communication is to be sent, as designated above, or (ii) three working days following the deposit in the United States Mail of registered or certified mail, postage prepaid, return receipt requested, or with reputable overnight courier addressed to the offices of the Party to whom the communication is to be sent, as designated above.

7. Powers to Enter into Agreement. The individuals executing this Agreement represent and warrant that they have the right, power, legal Packet Pg. 410
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3 capacity and authority to enter into and to execute this Agreement on behalf of the respective legal entities of the Gas Company and the City.

8. Assignment or Transfer of Authorization. This Agreement may be assigned or transferred to any qualified person or entity subject to the prior written approval of the City, which shall not be unreasonably withheld, conditioned or delayed. Notwithstanding the foregoing, City’s prior written consent shall not be required for any of the following: (a) the transfer of any shares or stock in or change in control of Gas Company’s parent company, or (b) any merger, consolidation or reorganization of, by or with Gas Company or transfer of all or substantially all of the stock or shares in Gas Company or assets of Gas Company.

9. Entire Agreement; Successors and Assigns. This Agreement contains the entire understanding between the Parties with respect to the subject matter herein. There are no representations, agreements, or understandings, whether oral or written, between or among the Parties relating to the subject matter of this Agreement which are not fully expressed herein. Each Party has relied on advice from its own attorneys, and the warranties, representations, and covenants of this Agreement itself.

This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

10. Governing Law; Venue. This Agreement shall be interpreted in accordance with the laws of the State of California without regard to its conflict of laws principles. Exclusive venue for any action related to this Agreement shall be in the County of San Bernardino, State of California.

11. Counterparts; Signatures. This agreement may be executed in counterparts, each of which shall be deemed an original. The Agreement shall become effective when a counterpart has been signed by each Party and delivered to the other Party. Electronic or facsimile signatures shall be legally binding with the same force and effect as original signatures. [SIGNATURES ON NEXT PAGE]
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4 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first written above.

CITY

CITY OF SAN BERNARDINO
APPROVED BY:

Charles E. McNeely
Interim City Manager
ATTESTED BY:

Genoveva Rocha
City Clerk
APPROVED AS TO FORM:

Best Best & Krieger LLP
City Attorney

GAS COMPANY

SOUTHERN CALIFORNIA GAS

COMPANY
Signature
Name
Title
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5 EXHIBIT A

GAS FRANCHISE AGREEMENT
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Adopted August 4 2003
Effective September 4 2003
2 ORDINANCE NO MC
1149 AN ORDINANCE OF THE CITY OF SAN BERNARDINO GRANTING

TO SOUTHERN CALIFORNIA GAS COMPANY A CORPORATION

ITSSUCCESSORS AND ASSIGNS THE RIGHT PRIVILEGE ANDFRANCHISE

TO LAY AND USE PIPES ANDAPPURTENANCES FORTRANSMITTING

ANDDISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER ALONG

ACROSS OR UPON THE PUBLIC STREETS WAYS ALLEYS AND PLACES AS THE

SAME NOW ORMAYHEREAFTER EXIST WITHIN SAID

MUNICIPALITY THE MAYOR ANDCOMMON COUNCIL OF THE CITY OF

SANBERNARDINO DOORDAIN AS

FOLLOWS SECTION
ONE
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III
27 28Whenever in this ordinance the words orphrases hereinafter in this section defined areused they shall have therespective meanings assigned tothem in the following definitions unless in the giveninstance thecontext wherein they are used shall clearly import adifferent
meaning aTheword Grantee shall mean Southern California Gas Company and its lawful successors or
assigns bThe word City shall mean the City ofSan Bernardino aCharter City and amunicipal corporation ofthe State ofCalifornia in itspresent incorporated form or inany laterreorganized consolidated orreincorporated
form cThe word streets shall mean the public streets ways alleys and places as thesame now ormay hereafter exist within said City dTheword Engineer shall mean the City
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27 28 AN ORDINANCE OF THE CITY OF SAN BERNARDINO GRANTING

TO SOUTHERN CALIFORNIA GAS COMPANY A CORPORATION

ITSSUCCESSORS AND ASSIGNS THE RIGHT PRIVILEGE ANDFRANCHISE

TO LAY AND USE PIPES ANDAPPURTENANCES FORTRANSMITTING

ANDDISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER ALONG

ACROSS OR UPON THE PUBLIC STREETS WAYS ALLEYS AND PLACES ASTHE

SAME NOW ORMAYHEREAFTER EXIST WITHIN SAID
MUNICIPALITY eTheword franchise shall mean and include anyauthorization granted hereunder interms ofafranchise privilege permit license or otherwise to lay and use pipes andappurtenances fortransmitting anddistributing gas for any and all purposes under along across or upon the public streets ways alleys and places in the City asmore fully set forth inSection Two a
below fThe word gas shall mean naturalormanufactured gas oramixture ofnatural andmanufactured
gas gThe phrase pipes andappurtenances shall mean pipepipeline cable main service trap vent vault manhole meter gauge regulator valve conduit appliance attachment adjunctcommunications lineappurtenance and anyother property located or tobelocated inupon along across under orover thestreets ofthe City and used or useful in or incarrying onthebusiness oftransmitting anddistributing gas and hThe phrase lay and use shall mean to layconstruct erect install operate maintain use repair replace or
remove
III
III
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IAN ORDINANCE OF THE CITY OF SAN BERNARDINO GRANTING

TO SOUTHERN CALIFORNIA GAS COMPANY A CORPORATION

ITSSUCCESSORS AND ASSIGNS THE RIGHT PRIVILEGE ANDFRANCHISE

TO LAY AND USE PIPES ANDAPPURTENANCES FORTRANSMITTING

ANDDISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER ALONG

ACROSS OR UPON THE PUBLIC STREETS WAYS ALLEYS AND PLACES AS THE

SAME NOW ORMAYHEREAFTER EXIST WITHIN SAID
MUNICIPALITY i
The phrase adjunct communications line shall mean anyfacility such ascoaxial cable optical fiber wire orothertransmission lines orformsoftransmission andassociated equipment and devices located in upon along across under or over thestreets ofthe City the sole function ofwhich is tomonitor or control theoperation or safety of the gas system facilities via the distribution of video audio voice or data signals An adjunct communications line shall not include anyfacility which distributes through any means tosubscribers or persons other than grantee the signal of one ormore broadcast television or radio stations or other sources of video audio voice or data signals for alength inexcess of1
000feet
SECTION TWO aThat theright privilege andfranchise subject toeach and all ofthe termsandconditions contained inthis ordinance and pursuant to Chapter 14 04 Sections 14 010 14 04 030 ofthe SanBernardino Municipal Code ishereby granted to Grantee to lay and use pipes andappurtenances fortransmitting anddistributing gas for any and all purposes under along across or upon thestreets ofthe CityAny proposedtelecommunication orother non gas system uses must be approved by the City underaseparate franchise orother applicable
City
permit
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MC
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27 28 AN ORDINANCE OF THE CITY OF SAN BERNARDINO GRANTING

TO SOUTHERN CALIFORNIA GAS COMPANY A CORPORATION

ITSSUCCESSORS AND ASSIGNS THE RIGHT PRIVILEGE ANDFRANCHISE

TO LAY AND USE PIPES ANDAPPURTENANCES FORTRANSMITTING

ANDDISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER ALONG

ACROSS ORUPON THE PUBLIC STREETS WAYS ALLEYS AND PLACES ASTHE

SAME NOW ORMAYHEREAFTER EXIST WITHIN SAID
MUNICIPALITY bThe term orperiod ofthisfranchise shall be twenty 20years from and after theeffective date hereof that is tosay thisfranchise shall endure in full force and effect until thesame shall with theconsent ofthe Public UtilitiesCommission ofthe State ofCalifornia bevoluntarily surrendered orabandoned by its possessor or until the State ofCalifornia orsome municipal orpublic corporation thereunto dulyauthorized by law shall purchase byvoluntary agreement orshall condemn and take under the powerof eminent domain all property actually used and useful in theexercise ofthisfranchise and situated within theterritorial limits oftheState municipal orpublic corporation purchasing orcondemning such property or until thisfranchise shall beforfeited fornoncompliance with its terms by thepossessor
thereof c
City shall have the right toterminate thisFranchise byordinance at any time should anyofthefollowing events occur ithe Grantee fails tocomply with anymaterial provision hereof or iitheCity purchases through its powerofeminent domain or otherwise allofthefranchise property of Grantee TheGrantee shall be given thirty 30 days written notice prior tothebeginning ofanytermination proceeding
III
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lAN ORDINANCE OF THE CITY OF SAN BERNARDINO GRANTING

TO SOUTHERN CALIFORNIA GAS COMPANY A CORPORATION

ITSSUCCESSORS AND ASSIGNS THE RIGHT PRIVILEGE ANDFRANCHISE

TO LAY AND USE PIPES ANDAPPURTENANCES FORTRANSMITTING

ANDDISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER ALONG

ACROSS ORUPON THE PUBLIC STREETS WAYS ALLEYS AND PLACES AS THE

SAME NOW ORMAYHEREAFTER EXIST WITHIN SAID

MUNICIPALITY SECTION
THREE aTheGrantee shall pay tothe City atthe times hereinafter specified inlawful money ofthe United States atotal annual Franchise Feeinitially calculated as of January I
2003 and paid in thefollowing
manner iGross Receipts from the Sale of Gas Afee that isequal to thehigher
of A
Two percent 2ofthe grossannual receipts ofthe Grantee
derived from the useoperation orpossession ofthis franchise Broughton Act Formula
or B2ofthe gross annual receipts oftheGrantee derived from the saletransmission ordistribution ofgaswithin the limits ofthe City under this
franchise C Intheevent thelegislature amends the Franchise Act of 1937 Public Utilities Code 96201 6302 or enacts any other state lawwhich increases thefranchise payment to cities toalevel greater than that provided in this Section 3 athen the City shall have the option ofprospectively employing thelegislative formula which shall apply for theremaining term of this agreement instead ofthepayments set forth in Section 3 aherein IftheCity exercises said option thelegislative formula shallbeprospectively applied hereto on Packet Pg. 418
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27 28 AN ORDINANCE OF THE CITY OF SAN BERNARDINO GRANTING

TO SOUTHERN CALIFORNIA GAS COMPANY A CORPORATION

ITSSUCCESSORS AND ASSIGNS THE RIGHT PRIVILEGE ANDFRANCHISE

TO LAY AND USE PIPES ANDAPPURTENANCES FORTRANSMITTING

ANDDISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER ALONG

ACROSS ORUPON THE PUBLIC STREETS WAYS ALLEYS AND PLACES ASTHE

SAME NOW ORMAYHEREAFTER EXIST WITHIN SAID
MUNICIPALITY later oftheeffective date ofthelegislation orJanuary Iofthecalendar year in which the Cityexercised said
option iiTheMunicipal Public Lands Use Surcharge asprovided by Public Utilities Code Sections 6354 and following as may beamended from time to time bTheFranchise Fee asdescribed insubsections a iand a ii above shall be paid infourinstallments eachinstallment being equal tothe total gross receipts of thepreceding calendar quarter employing the gross receipts formula plus theamount ofthe InLieu Fee for thepreceding calendar quarter Each installment shall be paid tothe City on orprior tothe twenty fifth 25th dayofthe second month following therespective quarter forwhich payment is made except for thefinal quarterly payment fortheyear which shall be paid onor prior to March 31stFor example the installment for thefirst quarter of theyear January through March shall be paid tothe City on May25thAny overpayment shallbe recovered by Granteebysetoff againstfuture installments or ifthe franchise has been terminated such overpayment orthebalance thereof shall be payable by City toGrantee upon
written
demand
III
III
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MC
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27 28 AN ORDINANCE OF THE CITY OF SAN BERNARDINO GRANTING

TO SOUTHERN CALIFORNIA GAS COMPANY A CORPORATION

ITSSUCCESSORS AND ASSIGNS THE RIGHT PRIVILEGE ANDFRANCHISE

TO LAY AND USE PIPES ANDAPPURTENANCES FORTRANSMITTING

ANDDISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER ALONG

ACROSS OR UPON THE PUBLIC STREETS WAYS ALLEYS AND PLACES ASTHE

SAME NOW ORMAYHEREAFTER EXIST WITHIN SAID

MUNICIPALITY SECTION
FOUR aAny notices shall be inwriting and bedelivered bycourier service or bycertified mailreturn receipt requested orbytelecopy with aconfirming copy mailed first class mail by the next business day tothe other party atthe address shown below or at such other address as theparty may designate bywritten notice delivered in themanner provided for
herein City ofSan
Bernardino 300 ND
Street SanBernardino CA
92418 Telecopy 909
384 5158 Telephone
909 384 5002
Attn City Clerk With acopy toCity
of San Bernardino 300
NDStreet San
Bernardino CA 92418
Telecopy 909 384
5138 Telephone 909
384
5122
Attn
City
Administrator
III
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MC 1l49 AN ORDINANCE OF THE CITY OF SAN BERNARDINO GRANTING

TO SOUTHERN CALIFORNIA GAS COMPANY A CORPORATION

ITSSUCCESSORS AND ASSIGNS THE RIGHT PRIVILEGE ANDFRANCHISE

TO LAY AND USE PIPES ANDAPPURTENANCES FORTRANSMITTING

ANDDISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER ALONG

ACROSS OR UPON THE PUBLIC STREETS WAYSALLEYS AND PLACES AS THE

SAME NOW ORMAYHEREAFTER EXIST WITHIN SAID

MUNICIPALITY
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19 IIISouthern California Gas
Company 555 West Fifth
Street Los Angeles CA
90013 1011 PO
Box 3249 Los Angeles
CA90051 1249
Telecopy number 213
244 8223 Confirmation number213244
5701 Attn Senior Vice
President Distribution Operations and
acopy toSouthern
California Gas Company 555West
Fifth Street Los Angeles
CA 90013 10 II
PO Box
3249Los Angeles
CA 90051 1249 Telecopy number2132444997
Confirmation number
213
244 2528
Attn
Fees
and
Tax
Manager
Regional
Public
Affairs
20 III
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27 28 AN ORDINANCE OF THE CITY OF SAN BERNARDINO GRANTING

TO SOUTHERN CALIFORNIA GAS COMPANY A CORPORATION

ITSSUCCESSORS AND ASSIGNS THE RIGHT PRIVILEGE ANDFRANCHISE

TO LAY AND USE PIPES ANDAPPURTENANCES FORTRANSMITTING

ANDDISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER ALONG

ACROSS OR UPON THE PUBLIC STREETS WAYS ALLEYS AND PLACES AS THE

SAME NOW ORMAYHEREAFTER EXIST WITHIN SAID
MUNICIPALITY b
This grant ismade in lieu ofallotherfranchises owned by the Grantee or byanysuccessor ofthe Grantee toany rights under thisfranchise fortransmitting anddistributing gas within the limits ofthe City as said limits now ormay hereafter exist and theacceptance ofthefranchise hereby granted shall operate asanabandonment ofall suchfranchises within the limits ofthis City assuch limits now ormay hereafter exist inlieu ofwhich thisfranchise is granted This grant alsosupersedes that certain Resolution 2003 37 grantingarevocable license totheSouthern California Gas Company forits operations inthe CityofSan Bernardino adopted atthe Mayor and Common Council meeting of January 212003 andthe Revocable License between theparties executed pursuant to said Resolution cThe Grantee ofthis franchise shall file with the Clerk ofthe City within three 3months after the expiration ofthe calendar yearorfractional calendar year following the date ofthe grant ofthis franchise and within three 3months afterthe expiration of each andevery calendar year thereafteradulyverified statement showing in detail thetotal gross receipts ofthe Grantee its successors orassigns during thepreceding calendar yearorsuchfractional calendar year from the sale oftheutility service within the Cityfor which this franchise isgranted and anyother information needed to calculate the Franchise Feein SECTION THREE Anyneglect omission or refusal bysaid Grantee tofilesuchverified statement ortopaysaid Franchise Fee atthe times or in themanner hereinbefore provided shall begrounds forthe declaration ofaforfeiture ofthis franchise and ofall
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27 28 AN ORDINANCE OF THE CITY OF SAN BERNARDINO GRANTING

TO SOUTHERN CALIFORNIA GAS COMPANY A CORPORATION

ITSSUCCESSORS AND ASSIGNS THE RIGHT PRIVILEGE ANDFRANCHISE

TO LAY AND USE PIPES ANDAPPURTENANCES FORTRANSMITTING

ANDDISTRIBUTING GASFOR ANY AND ALL PURPOSES UNDER ALONG

ACROSS OR UPON THE PUBLIC STREETS WAYS ALLEYS ANDPLACES AS THE

SAME NOW ORMAYHEREAFTER EXIST WITHIN SAID

MUNICIPALITY SECTION
FIVE Thefranchise granted hereunder shall not become effective until writtenacceptance thereof shall have been filed by theGrantee thereof with the Clerk ofthe City When sofiled such acceptance shall constitute acontinuing agreement ofthe Grantee that ifand when the City shall thereafter annexorconsolidate withadditional territory any and all franchise rights and privileges owned by theGrantee therein shalllikewise bedeemed to beabandoned within the limits oftheadditional
territory SECTION
SIX Thefranchise granted hereunder shall not in any way or toany extent impair or affect the rightofthe City toacquire theproperty ofthe Grantee hereof either by purchase orthrough the exercise ofthe rightofeminent domain andnothing herein contained shall beconstrued tocontract away or to modifY or toabridge either foraterm or inperpetuity the City s rightofeminent domain in respect totheGrantee nor shall thisfranchise ever begiven anyvalue before any courtorother public authority inany proceeding ofany character inexcess ofthe cost tothe Grantee ofthenecessary publication and any other sum paid by it tothe City therefor atthe time ofthe
acquisition thereof
SECTION SEVEN The Grantee ofthis
franchise shallaconstruct install and maintain allpipesand appurtenances inaccordance with andinconformity with allofthe ordinances rulesand Packet Pg. 423
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ITSSUCCESSORS AND ASSIGNS THE RIGHT PRIVILEGE ANDFRANCHISE

TO LAY AND USE PIPES ANDAPPURTENANCES FORTRANSMITTING

ANDDISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER ALONG

ACROSS OR UPON THE PUBLIC STREETS WAYS ALLEYS AND PLACES AS THE

SAME NOW ORMAYHEREAFTER EXIST WITHIN SAID
MUNICIPALITY orhereafter adopted by thelegislative body ofthis City in theexercise of its police powers and not inconflict with theparamount authority ofthe State ofCalifornia and as to State highways subject totheprovisions of general laws relating tothelocation and maintenance ofsuch
facilities bpay tothe Cityondemand thecost ofall repairs topublic property madenecessary byany operations oftheGrantee under this franchise cGrantee shall also beliable tothe City foralldamages proximately resulting from thefailure ofGrantee toobserve and perform theprovisions of this Franchise This subsection cshall survive thetermination orexpiration of this Franchise and shall continue for so long as thefranchise propertyofGrantee islocated within the City dGrantee shallindemnify defend and hold harmless City and its officers from any and allliability fordamages proximately resulting from any operations under this franchise and beliable tothe City foralldamages proximately resulting from the failure ofsaidGrantee towell andfaithfully observe andperform each andevery provision of thisfranchise and each and every provision ofDivision 3 Chapter 2ofthePublic Utilities Code ofthe State ofCalifornia Grantee acknowledges that any claims demands losses damages costs expenses and legal liability that arise out ofresult from or are in anyway connected with the release or spill ofanylegally designated hazardous material or waste asaresultof theuse or existence ofthe pipes andappurtenances that are thesubject of this Franchise areexpressly within the scope ofthis indemnity and that the costs expenses and legal Packet Pg. 424
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TO SOUTHERN CALIFORNIA GAS COMPANY A CORPORATION

ITSSUCCESSORS AND ASSIGNS THE RIGHT PRIVILEGE ANDFRANCHISE

TO LAY AND USE PIPES ANDAPPURTENANCES FORTRANSMITTING

ANDDISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER ALONG

ACROSS OR UPON THE PUBLIC STREETS WAYS ALLEYS AND PLACES AS THE

SAME NOW ORMAYHEREAFTER EXIST WITHIN SAID
MUNICIPALITY forenvironmental investigations monitoring containment abatement removal repair cleanup restoration remedial work penalties and fines arising from theviolation of any local state orfederal law orregulation attorney sfees disbursements and other response costsareexpressly within the scope ofthis indemnity This subsection dshall survive the termination or expiration ofthis Franchise andshall continue for so long as thefranchise property of Grantee islocated within
the City eInthe event the use ofanyfranchise property is discontinued Grantee shall promptly notify the Engineer ofanymaterial discontinuance and remove from the streetallsuch discontinued property unless the Engineer permits such property tobe abandoned in place inaccordance withthe requirements ofthe Engineer subjectto applicable requirements ofthe California Public Utilities Commission After abandonment atthe option ofCity Grantee shall submit tothe Engineeraninstrument reasonably approved by the Cityand Grantee transferring to theCitythe ownership ofsuch franchise property fCity shall have the right tochange the grade width or location ofany street or improve any street inany manner including but not limited tothe laying ofany sewer storm drain drainage facilityor other pipe or construct and install any pedestrian tunnel traffic signal street lighting facility orother public improvement provided however that nothing herein is intended to expand or limit the duty of Grantee to relocate at its expense under Public Utilities Code Section 6297 or common law and as such lawmay change from time to timebyjudicial interpretation orbystatutory enactment Ifsuch work shall require a change inthe position orlocation ofanyofGrantee sfacilities or equipment Packet Pg. 425
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TO SOUTHERN CALIFORNIA GAS COMPANY A CORPORATION

ITSSUCCESSORS AND ASSIGNS THE RIGHT PRIVILEGE ANDFRANCHISE

TO LAY AND USE PIPES ANDAPPURTENANCES FORTRANSMITTING

ANDDISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER ALONG

ACROSS OR UPON THE PUBLIC STREETS WAYS ALLEYS AND PLACES AS THE

SAME NOW ORMAYHEREAFTER EXIST WITHIN SAID
MUNICIPALITY soleexpense within ninety 90 days after written notice from the Engineer shall commence the work of doing any and all things toeffect such change inposition orlocation inconformity with the Engineers
written instructionsgThis franchise may notbetransferred voluntarily involuntarily orby operation oflaw leased orassigned byGrantee except byconsent inwriting ofthe Common Council which shall notbeunreasonably withheld orunreasonably conditioned and unless thetransferee orassignees thereof shall covenant and agree toperform and bebound by each and all ofthe terms hereof provided however that theforegoing shall not apply to Grantee sinclusion ofthe franchise as security underamortgage deed of trustor other security agreement securing the repayment of bonds ornotes Grantee shall file with the City Clerkand City Administrator ofthe City within thirty 30days after any sale transfer assignment orlease ofthis Franchise orany part hereof or ofanyofthe rightsor privileges granted hereby written evidence ofthesame certified thereto bythe Grantee orits duly
authorized officers
SECTION EIGHT The City Treasurer orany certified public accountant or qualifiedperson designated by the Cityatany reasonable time during business hours may make examination atGrantee s officesofitsbooks accounts computerized data and records germane toandforthepurpose of verifying the data set forth inthe statement required bySECTION
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TO SOUTHERN CALIFORNIA GAS COMPANY A CORPORATION

ITSSUCCESSORS AND ASSIGNS THE RIGHT PRIVILEGE ANDFRANCHISE

TO LAY AND USE PIPES ANDAPPURTENANCES FORTRANSMITTING

ANDDISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER ALONG

ACROSS OR UPON THE PUBLIC STREETS WAYS ALLEYS AND PLACES AS THE

SAME NOW OR MAYHEREAFTER EXIST WITHIN SAID

MUNICIPALITY SECTION
NINE aAny pipes andappurtenances laid located ormaintained under saidfranchise shall be soplaced as not tointerfere with theuse ofthe streets by the traveling public or forpublic purposes toany greater extent than isreasonably necessary and in laying said pipes andappurtenances Grantee shall fillthe trench and leave the surface ofthe streets in asgood condition as itwas prior toexcavating forlaying said pipes and appurtenances and any pipes andappurtenances laid ormaintained under saidfranchise shall be laidlocated and maintained inconformity withinstructions given by and tothesatisfaction ofthe Engineer and Grantee itssuccessors and assigns shall hold theCityharmless from all damage resulting from thelaying use oroperation ofsaid pipes and appurtenances bWhere it isnecessary to layany underground pipes and appurtenances through under oracross any portion ofapaved ormacadamized street thesame wherepracticable andeconomically reasonable asdetermined by the Engineer shall bedone by atunnel or bore so as not todisturb thefoundation ofsuch paved ormacadamized street and in theevent that thesame cannot be sodone such work shall bedone underapermit to begranted by the Engineer uponapplication therefor and Grantee shall restore such street or portion ofstreet to as good acondition asexisted before such work was done and suchrestoration shall becompleted tothereasonable satisfaction ofthe Packet Pg. 427
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TO SOUTHERN CALIFORNIA GAS COMPANY A CORPORATION

ITSSUCCESSORS AND ASSIGNS THE RIGHT PRIVILEGE ANDFRANCHISE

TO LAY AND USE PIPES ANDAPPURTENANCES FORTRANSMITTING

ANDDISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER ALONG

ACROSS OR UPON THE PUBLIC STREETS WAYS ALLEYS AND PLACES AS THE

SAME NOW ORMAYHEREAFTER EXIST WITHIN SAID

MUNICIPALITY SECTION
TEN Ifany portion ofany street shall bedamaged byreason ofdefects inany of the pipes andappurtenances maintained orconstructed under this grant orbyreason ofany other cause arising from theoperation or existence ofany pipes andappurtenances constructed or maintained under this grant Grantee shall at itsown cost and expenseimmediately repair anysuch damage andrestore such portion ofsuch damaged street to asgoodcondition asexisted before such defect or other cause ofdamage occurred such work to bedone under thedirection ofthe Engineer and to hisreasonable
satisfaction SECTION
ELEVEN aIfthe Grantee of thisfranchise shall fail neglect orrefuse to comply with anyoftheprovisionsorconditions hereof and shall not within ten 10 daysafter written demand forcompliance begin the workof compliance or after such beginning shall notprosecute the same with duediligence tocompletion then the City by itslegislative body may
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27 28 bTheCity may sue in itsown name for theforfeiture of thisfranchise in theeventofnoncompliance by theGrantee itssuccessors orassigns with anyof theconditions thereof Theremedyofforfeiture shall be inaddition toanyother legal rights remedies or causes ofaction the Citymay haveincluding butnot limited tothe right toterminate under Section Two
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TO SOUTHERN CALIFORNIA GAS COMPANY A CORPORATION

ITSSUCCESSORS AND ASSIGNS THE RIGHT PRIVILEGE ANDFRANCHISE

TO LAY AND USE PIPES ANDAPPURTENANCES FORTRANSMITTING

ANDDISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER ALONG

ACROSS ORUPON THE PUBLIC STREETS WAYS ALLEYS AND PLACES ASTHE

SAME NOW ORMAYHEREAFTER EXIST WITHIN SAID

MUNICIPALITY SECTION
TWELVE The Grantee of thisfranchise shall pay tothe Cityasum ofmoney sufficient toreimburse it forall publication expenses incurred by it inconnection with thegranting ofthis franchise suchpayment to bemade within thirty 30 days after the City shall furnish suchGrantee with awritten statement ofsuch
expenses SECTION
THIRTEEN After thepublication ofthis ordinance the Grantee shall file with the City Clerka
written acceptance ofthefranchise hereby granted and anagreement tocomply with theterms andconditions
hereof SECTION
FOURTEEN The City Clerk shall certify totheadoption ofthisordinance and within 15 days after its adoption shall cause the same with alist ofthe Council members voting for and against tobepublished once in The Sun ora
newspaper ofgeneral circulation inthe city
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TO SOUTHERN CALIFORNIA GAS COMPANY A CORPORATION

ITSSUCCESSORS AND ASSIGNS THE RIGHT PRIVILEGE ANDFRANCHISE

TO LAY AND USE PIPES ANDAPPURTENANCES FORTRANSMITTING

ANDDISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER ALONG

ACROSS ORUPON THE PUBLIC STREETS WAYS ALLEYS AND PLACES AS THE

SAME NOW ORMAYHEREAFTER EXIST WITHIN SAID
MUNICIPALITY HEREBY CERTIFY that theforegoing ordinance was duly adopted by the Mayor
joint andCommon Council ofthe CityofSan Bernardino at a regular meeting thereof held on the 4th day of August 2003 thefollowing vote to witCOUNCIL MEMBERS AYES NAYS ABSTAIN

ABSENT ESTRADA
X

LONGVILLE
X

MCGINNIS DERRY
X
SUAREZ

X ANDERSON
X

MCCAMMACK
X R
Cl
UTheforegoing ordinance ishereby approved this 5tLdayofAUgUR 2003 Approved as
toForm and legal
content
hVALLES Mayor
fSan
Bernardino JAMES F
PENMAN City Attorney
ByL
7 o17
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DISCUSSION
City of San Bernardino
Request for Council Action
Date: August 2, 2023
To: Honorable Mayor and City Council Members
From: Charles E. McNeely, Interim City Manager;
Mary Lanier, Agency Director of Community, Housing, and Economic Development
Department: Community, Housing, & Economic Development (CED) Subject: American Rescue Plan Act-Funded Entrepreneurial Development Services and Resource Center (All
Wards)
Recommendation:

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

1. Approve a reallocation of $873,700 of American Rescue Plan Act (“ARPA”) funds from the Small Business Education and Training Resources allocation to the Entrepreneurial Development Services and Resource Center (the “ERC,” also known as the Aspen Institute Initiative) for a total of $1,873,700 allocated to the ERC.

2. Authorize the Interim City Manager, or designee, to take necessary steps to implement and administer the agreement including executing an agreement or Memorandum of Understanding (“MOU”) with the Inland Empire Center for Entrepreneurship in an amount not to exceed $1,873,700 through December 31, 2026, and signing subsequent, necessary, and related documents to implement the MOU.

Executive Summary:

This action is to approve a reallocation of $873,700 of American Rescue Plan Act (“ARPA”) funds from the Small Business Education and Training Resources allocation to the Entrepreneurial Development Services and Resource Center (the “ERC,” also known as the Aspen Institute Initiative) for a total of $1,873,700 allocated to the ERC; and to authorize the Interim City Manager, or designee, to take necessary steps to implement and administer the agreement including executing an agreement or Memorandum of Understanding (“MOU”) with the Inland Empire Center for Entrepreneurship in an amount not to exceed $1,873,700 through December 31, 2026, Packet Pg. 431
and signing subsequent, necessary, and related documents to implement the MOU.

This proposed partnership with California State University, San Bernardino’s Inland Empire Center for Entrepreneurship is the mechanism to execute Council’s request for a small business resource center and small business education and training. There is no General Fund fiscal impact associated with the use of American Rescue Plan funds.

Background
On March 10, 2021, the United States Congress passed the American Rescue Plan Act (“ARPA”), which President Joseph Biden signed into law the next day on March 11, 2021. ARPA established the Coronavirus State Fiscal Recovery Fund (“CSFRF”) and Coronavirus Local Fiscal Recovery Fund (“CLFRF”), together known as the Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”) program, which provides a combined $350 billion in assistance to eligible state, local, territorial, and Tribal governments to help turn the tide on the pandemic, address its economic fallout, and lay the foundation for a strong and equitable recovery. The City of San Bernardino was awarded $77 million under ARPA, with $38.5 million received in May 2021 and the remainder of the funds received in 2022.

Since July 2021, the City of San Bernardino participated as one of six cities in the Aspen City Action Lab, an initiative of the Aspen Institute Latinos and Society Program (the “Aspen Institute”). The program was designed to develop initiatives that have the possibility to transform the business ecosystem of the City and create a sustained entrepreneurial infrastructure. A key element of the program was to create a local steering committee comprised of key stakeholders and City staff to develop an actionable investment in the community. The steering committee identified the Entrepreneurial Resource Center (“ERC”) as that actionable investment, where it would “provide a centrally located and easily accessible downtown hub for small business training and technical assistance” to promote “job growth, wealth creation and economic resilience.”
At the February 2, 2022, City Council Meeting, the City Council unanimously approved Resolution No. 2022-26 allocating $5,000,000 for the Small Business and Non-Profit Assistance Grant Program to be spent in the following manner:

1. $3,000,000, Small Business and Non-Profit Assistance Grant Program

2. $1,000,000, Aspen Institute Initiative / Entrepreneurial Resource Center

3. $1,000,000, Small Business Education and Training Resources The $1,000,000 allocation of ARPA funds to the Aspen Institute Initiative was for the development of the Entrepreneurial Resource Center project. During the February 2, 2022, City Council Meeting, the City Council expressed their desire to include funding for small business education and training. As a result, the City Council allocated an additional $1,000,000 for small business education and training, which would be facilitated through the Entrepreneurial Resource Center.

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Small Business and Non-Profit Assistance Grant Program Update. The City partnered with the Small Business Development Center to deliver free training and resources to all grant applicants. As of July 14, 2023, the Small Business and Non-Profit Assistance Grant Program has spent $1,235,000 on a total of 53 fully processed grants. An additional 53 grants are currently being processed, totaling approximately an additional $1,310,000. Staff anticipates the possibility of approximately $455,000 remaining in the program after all eligible applicants receive funding. With this remaining funding, staff will develop a second round of grant funding to benefit small businesses that were not previously eligible through the first round of funding.

Discussion
The funding required to establish the Entrepreneurial Resource Center and ensuring a minimum operating period of three (3) years is $1,873,700, which exceeds the original allocation of $1,000,000. Staff proposes to combine $873,700 that was allocated for small business education and training with the $1,000,000 that was allocated for the Aspen Institute Initiative to develop the ERC. The objective of the ERC is to provide small business education and training. Consolidating these two allocations in order to secure the ERC will allow the City to implement the Council’s policy direction regarding assistance for San Bernardino small businesses. The ARPA funding permits assistance to disproportionately impacted small businesses in the form of technical assistance and business incubators.

Entrepreneurial Resource Center (ERC). Since February 2022, City staff has worked with representatives at California State University, San Bernardino to select a site, develop a Memorandum of Understanding, and establish shared funding for the Entrepreneurial Resource Center.

The Inland Empire Center for Entrepreneurship (“IECE”) at California State University, San Bernardino will provide resources and support for entrepreneurs and small business owners located in the City of San Bernardino. The goal is to aid aspiring and existing small business owners through business counseling and specialized business assistance programs to help them recover from the pandemic and build sustainable resilience to navigate and survive future economic challenges.

The proposed activities and services will be delivered by IECE’s premier programs – the Inland Empire Small Business Development Center (SBDC) and Women’s Business Center (WBC) – and, in addition to providing new services and programs, will leverage IECE’s existing infrastructure, staff, faculty, and funding support. Proposed programs will provide training for start-up businesses, financial literacy, digital marketing, technology start-ups, procurement, contracting, and more.

The ERC will provide a centrally located and easily accessible hub for small business training and technical assistance. The ERC will bring together a wide range of entrepreneurial support organizations to provide a complete set of training, technical assistance, and access to resources for small business owners and entrepreneurs in the general service area of the location. It will improve access to resources for all Packet Pg. 433
aspiring and existing entrepreneurs, increase the rate of business creation, and foster greater success and long-term sustainability for local small businesses.

The ERC will be anchored by the IECE—one of the largest university-based Centers for Entrepreneurship in the world and the most experienced and comprehensive entrepreneurial technical assistance provider in the Inland Empire —and the globally recognized School of Entrepreneurship (SoE), which remains the first and only school of its kind in the state. The extensive array of entrepreneurial support programs offered by the IECE and SoE encompasses every stage of company formation and growth.

Together, the IECE and SoE will work with partner entrepreneurial support organizations to set clear objectives, develop programming, and deliver services with tangible results.

Key Objectives
• Ensure that all current and aspiring small business owners have consistent access to the resources they need to start and grow their businesses. • Provide long-term small business support that ensures sustainable success. • Address disparities in small business ownership and entrepreneurship through a deliberate focus on Latinos and others from underrepresented groups in the city, and as appropriate, surrounding communities (e.g., Rialto, Highland, Colton, Redlands).
• Increase coordination and collaboration among entrepreneurial support organizations working within the region to establish a clear and easy-to-access continuum of support for entrepreneurs and small business owners.

In addition, we plan to provide a range of specialized programs and services (based on need and demand) such as:
• Marketplace Program – Assists entrepreneurs as they move from initial idea to microbusiness launch with tracks for farmers market / craft fair sales (IE Made), e-commerce (California Shop Small-Amazon), wholesale (procurement network), and exports.
• SBDC Eats Program – Six-week program that prepares participants to start and run a food-based business (includes follow-on counseling). • Catapult Business Growth Network – 50-hour intensive for small business owners focused on key concepts and tools proven to drive and manage business growth (includes peer mentoring network).
• Financial Fitness Boot Camp – Four-day workshop for small business owners focused on financial literacy and financial management basics. • Main Street Digital Program – Assists brick-and-mortar businesses interested in having an online presence.
• SBDC Center for Contracting – Helps small businesses with contract readiness Packet Pg. 434
and securing contracts.
• UpStarters Discovery Program – Introduces middle and high school students to entrepreneurship fundamentals.
• Startup programs and workshops delivered in Spanish – similar to ones delivered by Association de Emprendedor@s.
• Other entrepreneurial support programs and services based on need and demand such as, but not limited to, working with organizations that represent street vendors interested in becoming legally operating businesses.

Cost
Creating the ERC and ensuring a minimum operating period of 3 years will require an investment of approximately $3.84 million (approximately $1.28 million per year).

IECEs contribution will be $1,969,438.80. This will leverage the IECE and SoE current annual investment of over $600,000 in small business technical assistance resources (staff and programs) in addition to the City‘s contribution, allowing for the establishment of the location, performing necessary facility improvements, ongoing space costs, deploying additional staff resources as necessary, and support for partner organizations.

A sustainability plan is in place that will allow the ERC to operate indefinitely following the 3-year initial investment. In addition to seeking ongoing funding through various grants, the intent is to have a planned farmers market, co-working space, incubator, and commercial food kitchen/food lab (if applicable) to generate sufficient revenue at maturity.

Reporting
The IECE will report to the City the following key program metrics on a quarterly basis:
• Clients counseled
• Clients trained
• Jobs supported
• Investment capital received
• Government contracts and certifications received
• Aggregate demographic data of clients served, including gender, ethnicity, veteran status (as reported by clients)
• Aggregate business demographic data – industry type (as reported by clients) • Client success stories
• Additional data, as agreed upon by the IECE and the City of San Bernardino 2021-2025 Strategic Targets and Goals
The use of the American Rescue Plan Funds as outlined aligns Key Target No. 4.

Economic Growth and Development by investing in economic development of local San Bernardino-based businesses.

Fiscal Impact
There is no General Fund fiscal impact associated with the use of American Rescue Plan funds.

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

Attachments

1. Attachment 1 - San Bernardino - MOU - ARPA Project – Entrepreneur Resource Center - Final

2. Attachment 2 - Resolution No. 2022-26 Assignment of American Rescue Plan Funds

3. Attachment 3 - Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule - Assistance to Small Businesses
Ward:

All Wards
Synopsis of Previous Council Actions:

August 4, 2021 Mayor and City Council received a report and discussed the allocation of American Rescue Plan funds.

October 20, 2021 Mayor and Council committed American Rescue Plan funds to eligible projects and programs and amended the 2021/22 Budget by $8,160,000. Resolution 2021-247.

February 2, 2022 Mayor and Council committed American Rescue Plan funds to eligible projects and programs. Resolution 2022-26.

June 7, 2023 Item 17: American Rescue Plan Act-Funded Entrepreneurial Development Services and Resource Center (All Wards) of the Mayor and City Council meeting was continued to the June 30, 2023, workshop
June 30, 2023 Mayor and Council received an update on the item from staff and California State University, San Bernardino partners Packet Pg. 436
1 MEMORANDUM OF UNDERSTANDING

BY AND BETWEEN

THE CITY OF SAN BERNARDINO
AND

UNIVERSITY ENTERPRISES CORPORATION AT CSUSB
FOR

ENTREPRENEURIAL DEVELOPMENT SERVICES
This Memorandum of Understanding (“MOU”) is made and entered into as of August 2, 2023, by and between the City of San Bernardino, a charter city and municipal corporation (“City”) and University Enterprises Corporation at CSUSB (“Subrecipient”) on behalf of Inland Empire Center for Entrepreneurship (“IECE”) at California State University San Bernardino. City and Subrecipient are sometimes referred to individually as “Party” and collectively as the “Parties”.

RECITALS
A. WHEREAS, the City has identified Economic Growth and Development as part of its 2020-2025 Key Strategic Targets and Goals with a focus on creating a “21st Century urban core”; and
B. WHEREAS, the City was one of six cities participating in the Aspen City Action Lab, an initiative of the Aspen Institute Latinos and Society Program (“Aspen Institute”); and
C. WHEREAS, through the Aspen City Action Lab, the City of San Bernardino, the Aspen Institute, California State University San Bernardino, New Localism Associates, James Irvine Foundation, and community stakeholders developed the San Bernardino Investment Playbook (“Playbook”) which highlights “actionable investments that advance climate readiness, boost equitable economic growth, and improve daily life for all residents”; and
D. WHEREAS, the Playbook identified the Entrepreneurial Resource Center Project (“the ERC Project”) as an actionable investment to “provide a centrally located and easily accessible downtown hub for small business training and technical assistance” to promote “job growth, wealth creation and economic resilience”; and E. WHEREAS, on March 10, 2021, the United States Congress passed, and on March 11, 2021, President Joseph Biden signed into law, the American Rescue Plan Act (“ARPA”); and
F. WHEREAS, ARPA established the Coronavirus State Fiscal Recovery Fund (“CSFRF”) and Coronavirus Local Fiscal Recovery Fund (“CLFRF”), together Packet Pg. 437
2 known as the Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”) program, which provides a combined $350 billion in assistance to eligible state, local, territorial, and Tribal governments to help turn the tide on the pandemic, address its economic fallout, and lay the foundation for a strong and equitable recovery; and G. The City received federal funding in the form of the SLFRF under ARPA in response to the coronavirus (“COVID-19”) pandemic. These funds may be used to carry out a wide range of community development activities, including those that benefit local communities; and
H. The Interim Final Rule on SLFRF issued by the Department of the Treasury (“Treasury”) effective May 17, 2021, and the Final Rule issued by the Department of the Treasury effective April 1, 2022, (together the Interim Final Rule and the Final Rule are hereinafter referred to as the “Rule”) provide the rules and guidelines for how the ARPA funds may specifically be spent. Further, the Rule allows for the City to transfer SLFRF funds to a Subrecipient who provides services to those who have experienced a negative economic impact due to the COVID-19 public health emergency; and
I. ARPA states the City may grant subawards to subrecipients for the furtherance of an ARPA eligible use. City desires to make a grant of ARPA SLFRF funds to the Subrecipient, in accordance with the terms of this MOU and all applicable provisions of ARPA, to carry out the ERC Project; and
J. WHEREAS, the proposed work for the ERC Project is more particularly described in Exhibit “A”, attached hereto to this MOU and incorporated herein by this reference and
K. WHEREAS, the Parties wish to enter into this MOU to delineate roles, and responsibilities relative to the ERC Project.

NOW THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, it is mutually understood and agreed by the Parties as follows:

AGREEMENT

1. Incorporation of Recitals. The recitals above are true and correct and are hereby incorporated herein by this reference.

2. Term. This MOU shall commence on the Effective Date and continue through June 7, 2026, unless the MOU is previously terminated as provided for herein (“Term”).

Subrecipient certifies that the use of funds will be used only to cover expenditures allowed under ARPA and incurred during the Term. Any cost obligated by Subrecipient Packet Pg. 438
3 as of December 31, 2024, must be expended by December 31, 2026, to meet the eligible costs timeframe as defined by the United States Department of the Treasury.

3. Commencement of Performance. Subrecipient may not obligate or request disbursement of funds, incur any cost, or initiate the ERC Project that are the subject of this MOU until each of the following provisions has been fully satisfied:

3.1 Subrecipient must furnish proof of insurance as required under Section 6 of this MOU.

3.2 City has obtained proof that Subrecipient is registered on SAM.gov and that Subrecipient is not suspended or barred from federally funded programs.

3.3 Subrecipient has provided City with a completed Request for Taxpayer Identification Number and Certification, Form W-9 (Rev. 2020, as issued by the Internal Revenue Service).

3.4 Subrecipient has obtained a business license from the City.

3.5 This MOU is fully executed by the Parties.

3.6 Subrecipient has been issued a “Notice to Proceed” by City.

4. Commitments.

4.1 City Commitments. The City agrees to do the following:

4.1.1 Funding. City shall provide funding to Subrecipient in a total amount not-to-exceed One Million Eight Hundred Seventy-Three Thousand Seven Hundred Dollars and No Cents ($1,873,700.00). Subrecipient will receive 100% of grant funds from City within thirty (30) days of execution of this MOU and submittal of requests for reimbursement is not required unless additional funds are distributed to and/or are sought by Subrecipient. Except as expressly provided in Section 4.1.1 of this MOU, Subrecipient shall not be entitled to, nor receive from City any additional funding or other type of remuneration for services rendered under this MOU. City’s payment to Subrecipient under this MOU is contingent on the availability of program funds and continued federal and state authorization for the funded program activities.

4.1.2 Advise Subrecipient of any changes in its personnel, operation, or policies which may impact the ERC Project;

4.1.3 Provide feedback to Subrecipient on performance of the ERC Project;
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4 4.1.4 Meet with Subrecipient as necessary to conduct strategy, discuss and promote the ERC Project; and

4.2 Subrecipient Commitments. Subrecipient agrees to do the following:

4.2.1 Carry out the ERC Project in accordance with Exhibit “A” of this MOU. This shall include, but not be limited to, the marketing and promotion of the ERC Project to appropriate businesses and entrepreneurs;

4.2.2 Appoint a Program Manager as the liaison between the City and the Subrecipient, who will serve as the point of contact for the ERC Project;

4.2.3 Meet with City officials when needed to conduct strategy, discuss, and promote the ERC Project;

4.2.4 Use ARPA funds strictly in accordance with the ARPA Contract Requirements attached hereto as Exhibit “B,” which are incorporated herein by this reference. To the extent that any provision contained in Exhibit “B” conflicts with any provision of this MOU, Exhibit “B” governs. Any funds expended by Subrecipient in any manner that does not adhere to the ARPA program terms and conditions and this MOU shall be returned or repaid to the City. This includes, but is not limited to, funds paid to Subrecipient: i) in excess of the amount to which Subrecipient is finally determined to be authorized to retain; and ii) that are determined to have been misused. Notwithstanding the foregoing, the Project as described in Exhibit “A”, has been determined to be a proper use of ARPA funds .

4.2.5 Provide long-term small business support for eligible businesses that ensures sustainable success;

4.2.6 Ensure that all eligible current and aspiring small business owners have consistent access to the resources they need to start and grow their businesses;

4.2.7 Address disparities in small business ownership and entrepreneurship through a deliberate focus on underrepresented groups in the city, and as appropriate, surrounding communities;

4.2.8 Increase coordination and collaboration among entrepreneurial support organizations working within the region in order to establish a clear and easy-toaccess continuum of support for entrepreneurs and small business owners;

4.2.9 Report to the City the following key program metrics on a quarterly basis:

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5 (1) Clients counseled
(2) Clients trained
(3) Jobs supported
(4) Investment capital received
(5) Government contracts and certifications received
(6) Aggregate demographic data of clients served, including gender, ethnicity, veteran status (as reported by clients) (7) Aggregate business demographic data – industry type (as reported by clients)
(8) Client success stories
(9) Additional data, as agreed upon by the IECE and the City of San Bernardino

4.2.10 Record Inspection. Subrecipient agrees that it shall maintain and make available for inspection all books, records, papers, accounting records, or other documents pertaining to the performance of the ERC Project, including but not limited to, the costs associated with the ERC Project. Subrecipient shall make all such items available at their respective offices at reasonable times during the MOU term and for five years after the termination or expiration of this MOU. Subrecipient agrees that all duly authorized representatives shall have access to the documents during normal business hours.

4.3. Mutual Responsibilities.

4.3.1 Collaborate and develop strategies for the mutual promotion of the ERC Project;

4.3.2 Cooperate and work in good faith in order to accomplish the stated goals of the ERC Project;

4.3.3 After the execution of this MOU, participate in a kick-off meeting to coordinate the initial implementation of the ERC Project; and

4.3.4 Laws and Regulations. Each Party shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of this MOU or any work related to the ERC Project, including all Cal/OSHA requirements, and shall give all notices required by law. Each Party shall be liable for all violations of such laws and regulations in connection with this MOU or any work related to the ERC Project. If either Party performs any of its obligations hereunder knowing that its actions are contrary to such laws, rules and regulations and without giving written notice to the other, the violating Party shall be solely responsible for all costs arising therefrom. The violating Party shall defend, indemnify and hold the other, its officials, directors, officers, employees and agents free and harmless, pursuant to the Packet Pg. 441
6 indemnification provisions of this MOU, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

5. Indemnification. To the fullest extent permitted by law, Subrecipient shall defend, indemnify and hold the City, its elected and appointed officials, officers, employees, agents, and authorized volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, (collectively, “Claims”) in any manner directly arising out of any alleged acts, errors or omissions, or willful misconduct of Subrecipient, its officials, officers, employees, subcontractors, consultants or agents in connection with this MOU, including without limitation the payment of all damages, expert witness fees, attorneys’ fees and other related costs and expenses. This indemnification clause excludes Claims arising from the negligence or willful misconduct of the City, its elected and appointed officials, officers, employees, subcontractors, consultants or agents. Notwithstanding the foregoing, Subrecipient’s indemnification obligations shall still apply if Claims arise out of the negligence or fault of both Subrecipient and City. In instances of comparative fault, the apportionment of damages shall be shared between the Subrecipient and the City based upon the comparative degree of each other’s fault. Subrecipient’s contractual obligations shall not exceed the percentage of the damages attributable to Subrecipient’s fault. Subrecipient's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, the City Council, members of the City Council, its employees, or authorized volunteers.

Subrecipient’s indemnification obligation shall survive for a period of four (4) years after the expiration or earlier termination of this MOU.

To the fullest extent permitted by law, City shall defend, indemnify and hold the Subrecipient, its officers, employees, agents, and authorized volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, (collectively, “Claims”) in any manner directly arising out of any alleged acts, errors or omissions, or willful misconduct of City, its elected and appointed officials, officers, employees, subcontractors, consultants or agents in connection with: (1) potential misrepresentations made by the City under this MOU and (2) Claims arising out of the City’s interpretation of the rules and regulations related to ARPA funding under this MOU, including without limitation the payment of all damages, expert witness fees, attorneys’ fees and other related costs and expenses. This indemnification clause excludes Claims arising from the negligence or willful misconduct of the Subrecipients officials, officers, employees, subcontractors, consultants or agents. Notwithstanding the foregoing, City’s indemnification obligations shall still apply if Claims arise out of the negligence or fault of both City and Subrecipient. In instances of comparative fault, the apportionment of damages shall be shared between the City and the Subrecipient Packet Pg. 442
7 based upon the comparative degree of each other’s fault. City’s contractual obligations shall not exceed the percentage of the damages attributable to City’s fault. City’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Subrecipient, its employees, or authorized volunteers. City’s indemnification obligation shall survive for a period of four (4) years after the expiration or earlier termination of this MOU.

6. Insurance. Subrecipient shall not commence work under this MOU until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Subrecipient shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section.

6.1 Additional Insured
The City of San Bernardino shall be named as additional insureds on Subrecipient’s and its subcontractors’ policies of commercial general liability and automobile liability insurance using the endorsements and forms specified herein or exact equivalents.

6.2 Commercial General Liability

6.2.1 The Subrecipient shall take out and maintain, during the performance of all work under this MOU, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City.

6.2.2 Coverage for Commercial General Liability insurance shall be at least as broad as the following:

Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent.

6.2.3 Commercial General Liability Insurance must include coverage for the following:
(1) Bodily Injury and Property Damage
(2) Personal Injury/Advertising Injury
(3) Premises/Operations Liability
(4) Products/Completed Operations Liability
(5) Aggregate Limits that Apply per Project
(6) Explosion, Collapse and Underground (UCX) exclusion deleted
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8 (8) Broad Form Property Damage
(9) Independent Consultants Coverage

6.2.4 The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the MOU.

6.2.5 The policy shall give City, its elected and appointed officials, officers, employees, agents, and City-designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage.

6.2.6 The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured.

6.3 Automobile Liability

6.3.1 At all times during the performance of the work under this MOU, the Subrecipient shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City.

6.3.2 Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto).

6.3.3 The policy shall give City, its elected and appointed officials, officers, employees, agents and City designated volunteers additional insured status.

6.3.4 Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention.

6.4 Workers’ Compensation/Employer’s Liability

6.4.1 Subrecipient certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this MOU.

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9 6.4.2 To the extent Subrecipient has employees at any time during the term of this MOU, at all times during the performance of the work under this MOU, the Subrecipient shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this MOU, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Subrecipient shall require all subcontractors to obtain and maintain, for the period required by this MOU, workers’ compensation coverage of the same type and limits as specified in this section.

6.5. Minimum Policy Limits Required.

6.5.1 The following insurance limits are required for the MOU:

Combined Single Limit
Commercial General Liability $2,000,000 per occurrence/$4,000,000 aggregate for bodily injury, personal injury, and
property damage
Automobile Liability $1,000,000 per occurrence for bodily injury and property damage
Employer’s Liability $1,000,000 per occurrence

6.5.2 Defense costs shall be payable in addition to the limits.

6.5.3 Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this MOU.

6.6 Evidence Required
Prior to execution of the MOU, the Subrecipient shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional Packet Pg. 445
10 insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance.

6.7 Policy Provisions Required

6.7.1 Subrecipient shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this MOU, except that the Subrecipient shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of the premium. If any of the required coverage is cancelled or expires during the term of this MOU, the Subrecipient shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration.

6.7.2 The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Subrecipient’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss.

6.7.3 The retroactive date (if any) of each policy is to be no later than the effective date of this MOU. Subrecipient shall maintain such coverage continuously for a period of at least three years after the completion of the work under this MOU.

Subrecipient shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this MOU; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this MOU.

6.7.4 All required insurance coverages shall contain or be endorsed to provide waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Subrecipient or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Subrecipient hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subcontractors.

6.7.5 The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Subrecipient from liability in excess of such coverage, nor shall it limit the Subrecipient’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the MOU or law.

6.8 Qualifying Insurers
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11 6.8.1 All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements:

Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.

6.9. Additional Insurance Provisions

6.9.1 The foregoing requirements as to the types and limits of insurance coverage to be maintained by Subrecipient, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Subrecipient pursuant to this MOU, including, but not limited to, the provisions concerning indemnification.

6.9.2 If at any time during the life of the MOU, any policy of insurance required under this MOU does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Subrecipient or City will withhold amounts sufficient to pay premium from Subrecipient payments. In the alternative, City may cancel this MOU.

6.9.3 The City may require the Subrecipient to provide complete copies of all insurance policies in effect for the duration of the ERC Project.

6.9.4 Neither the City nor the City Council, nor any member of the City Council, nor any of the officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this MOU.

6.10 Subcontractor Insurance Requirements. Subrecipient shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Subrecipient, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants.

7. Force Majeure. In addition to specific provisions of this MOU, performance by either Party hereunder shall not be deemed to be in default, or considered to be a Packet Pg. 447
12 default, where delays or defaults are due to the force majeure events of war, insurrection, strikes, lockouts, riots, floods, earthquakes, fires, casualties, acts of God, acts of the public enemy, epidemics, quarantine restrictions, freight embargoes or lack of transportation, weather-caused delays, inability to secure necessary labor, materials or tools, delays of any contractors, subcontractor or supplier, which are not attributable to the fault of the Party claiming an extension of time to prepare or acts or failure to act of any public or governmental agency or entity. Delays encountered by either Party in obtaining governmental actions, reviews, approvals and permits shall not be deemed to be an enforced delay or a force majeure event pursuant to this Section. An extension of time for any such force majeure event shall be for the period of the enforced delay and shall commence to run from the date of occurrence of the delay; provided, however, that the Party that claims the existence of the delay has first provided the other Party with written notice of the occurrence of the delay within seven (7) calendar days after the commencement of such occurrence or delay. A Party’s failure to timely submit such notice of the occurrence of the delay pursuant to this Section shall be precluded from asserting the occurrence of an enforced delay or force majeure event.

8. Termination.

8.1 Termination for Convenience. Either City or Subrecipient may terminate this MOU at any time without cause by giving the other written notice of the date of termination at least 30 calendar days before. If this MOU is terminated as provided herein, Subrecipient will return unexpended and unobligated balance of ARPA funds provided to Subrecipient under to this MOU to City within thirty (30) calendar days.

8.2 Termination for Cause. If for any reason, Subrecipient fails to fulfill in a timely and proper manner its obligation under this MOU, or if Subrecipient violates any of the covenants of this MOU, City has the unilateral right to terminate this MOU by giving Subrecipient written notice at least five calendar days before termination. The notice must refer to this clause, specify the nature of the alleged default, and specify the effective date of the termination. If this MOU is terminated as provided herein, Subrecipient will return unexpended and unobligated balance of ARPA funds provided to Subrecipient under to this MOU to City within thirty (30) calendar days.

9. Miscellaneous Provisions.

9.1. Captions. Any captions to, or headings of, the sections or subsections of this MOU are solely for the convenience of the parties, are not a part of this MOU, and shall not be used for the interpretation or determination of the validity of this MOU or any provision hereof.

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13 9.2. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this MOU shall not be deemed to confer any rights upon, or obligate the parties, to any person or entity other than the parties hereto.

9.3. Notice. Any notice or instrument required to be given or delivered by this MOU may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to the following addresses and shall be effective upon receipt thereof:

CITY:

City of San Bernardino
Vanir Tower, 290 North D Street
San Bernardino, CA 92401
Attn: Nathan Freeman, Agency Director of
Community, Housing, and Economic
Development
With Copy To:

City of San Bernardino
Vanir Tower, 290 North D Street
San Bernardino, CA 92401
Attn: City Attorney
SUBRECIPIENT:

Inland Empire Center for Entrepreneurship
at California State University, San
Bernardino
Jack H. Brown Hall, 5500 University Pkwy,
San Bernardino, CA 92407
Attn: Dr. Michael Stull
With Copy to:

University Enterprise Corporation
California State University, San
Bernardino
5500 University Parkway
San Bernardino, CA 92407
Attn: Diane Trujillo

9.4. Laws and Venue. This MOU shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this MOU, the action shall be brought in a state or federal court situated in the County of San Bernardino, State of California.

9.5. Entire MOU. This MOU, including exhibits, represents the entire understanding of City and Subrecipient as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each Party acknowledges that no representations, inducements, promises, or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This is an integrated MOU.

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14 9.6. Resolution of Disputes.

9.6.1 Disputes regarding the interpretation or application of any provision of this Agreement must, to the extent reasonably feasible, be resolved through goodfaith negotiations between the Parties.

9.6.2 In the event that litigation is brought by any Party in connection with this MOU, the prevailing Party shall be entitled to recover from the opposing Party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing Party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof.

9.7. Severability. If any provision of this MOU is determined by a court of competent jurisdiction to be invalid, illegal, or unenforceable for any reason, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance, and the remaining provisions of this MOU shall remain in full force and effect.

9.8. Successors and Assigns. This MOU shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each Party to this MOU. However, Subrecipient shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void.

9.9. Non-Waiver. The delay or failure of either Party at any time to require performance or compliance by the other Party of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this MOU shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. The waiver of any right or remedy with respect to any occurrence or event shall not be deemed a waiver of any right or remedy with respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.

9.10. Amendments. Only a writing executed by all of the Parties hereto or their respective successors and assigns may amend this MOU.

9.11. Counterparts. This MOU may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one single MOU.

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15 9.12. Independent Contractor. Subrecipient is an independent contractor. As such, Subrecipient has no power or authority to incur any debt, obligation, or liability on behalf of City. Further, neither Subrecipient nor anyone working on its behalf is not entitled to any benefit typically associated with an employee such as medical, sickleave, or vacation benefits.

9.13. Authority. The persons executing this MOU on behalf of the Parties hereto warrant that they are duly authorized to execute this MOU on behalf of said Parties and that by doing so, the Parties hereto are formally bound to the provisions of this MOU.

9.14. Electronic Signature. Each Party acknowledges and agrees that this MOU may be executed by electronic or digital signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature
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16 SIGNATURE PAGE FOR MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF SAN BERNARDINO

AND UNIVERSITY ENTERPRISES CORPORATION AT CSUSB
IN WITNESS WHEREOF, the Parties have executed this MOU as of the date first written above.

CITY OF SAN BERNARDINO
APPROVED BY:

Charles McNeely
Interim City Manager
ATTESTED BY:

Genoveva Rocha, CMC
City Clerk
APPROVED AS TO FORM:

Best Best & Krieger LLP
City Attorney

SUBRECIPIENT
University Enterprises Corporation at
CSUSB
Signature
Name
Title
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17 EXHIBIT “A”

ENTREPRENEURIAL DEVELOPMENT SERVICES
The following programs and activities from the Inland Empire Center for Entrepreneurship (IECE) at California State University San Bernardino will provide resources and support for entrepreneurs and small business owners located in the City of San Bernardino. The goal is to aid aspiring and existing small business owners through business counseling and specialized business assistance programs to help them recover from the ongoing and residual effects of the pandemic and build sustainable resilience to navigate and survive future economic challenges.

The proposed activities and services will be delivered by our premier programs – the Inland Empire Small Business Development Center (SBDC) and Women’s Business Center (WBC) – and in addition to providing new services and programs, will leverage our existing infrastructure, staff, faculty and funding support. Thus, the City is investing in a well-established program and leveraging a wide range of State and Federal funds currently invested in the IECE.

Total Project Cost: $ $3,843,138.77 (average annual cost - $1.28 million) Funding Requested: $1,873,699.97
Funding period: 3 years

1. Entrepreneurial Resource Center (ERC)
Project Overview
Historically there has been a lack of coordination among the roughly two dozen organizations working to support entrepreneurship in the Inland Empire. While some of the smaller entities leverage the programs and resources of larger, better-established organizations, most work in relative isolation and lack the capacity to meet the changing needs of entrepreneurs as they move from initial idea to business launch. These coordination deficits result in duplicative efforts and disjointed programming that can be difficult to access and navigate.

The Entrepreneurial Resource Center (ERC) will provide a centrally located and easily accessible hub for small business training and technical assistance. The ERC will bring together a wide range of entrepreneurial support organizations to provide a complete set of training, technical assistance, and access to resources for small business owners and entrepreneurs in the general service area of the location. It will improve access to resources for all aspiring and existing entrepreneurs, increase the Packet Pg. 453
18 rate of business creation, and foster greater success and long-term sustainability for local small businesses.

Historically entrepreneurial support organizations in the region have worked largely in isolation, though a small number have focused on leveraging the programming and resources of larger, more established organizations. The ERC will convene these actors in order to create a well-defined and wellcoordinated continuum of services capable of supporting businesses across their entire lifecycle. It will also work with the potential Supply SB supplier (part of the San Bernardino Investment Playbook) diversity initiative to connect local Latino and Black vendors to contract-readiness programming and procurement-focused sales opportunities.

Key Objectives of the ERC
• Ensure that all current and aspiring small business owners have consistent access to the resources they need to start and grow their businesses.
• Provide long-term small business support that ensures sustainable success.
• Address disparities in small business ownership and entrepreneurship through a deliberate focus underrepresented groups in the city, and as appropriate, surrounding communities (e.g., Rialto, Highland, Colton, Redlands).
• Increase coordination and collaboration among entrepreneurial support organizations working within the region in order to establish a clear and easy-to-access continuum of support for entrepreneurs and small business owners.

Location, Size, and Scope
The target location for the ERC is the Chase Building in downtown San Bernardino.

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19 Facility size: approximately 5,000 square feet, to include: Private office space:
9 offices for IECE and partner organizations
Number of people working in the facility (including administrative staff): 10-15 Cohort-focused programs: 50 per cohort, offered quarterly in English and Spanish
Foot traffic (drop-in public events, use of meeting space, etc.): 2,500 served each year, 10 percent of which will be drop-in traffic.

Program Components
The ERC, at its core, will provide both short and long-term business counseling and training services from programs such as the Inland Empire Small Business Development Center (IESBDC), Inland Empire Women’s Business Center (IEWBC) that will assist business owners at every stage of development, from startup to growth. In addition, we plan to provide a range of specialized programs and services (based on need and demand) such as:
• Marketplace Program – Assists entrepreneurs as they move from initial idea to microbusiness launch with tracks for farmers market / craft fair sales (IE Made), e-commerce (California Shop Small-Amazon), wholesale (procurement network), and exports.
• SBDC Eats Program – Six-week program that prepares participants to start and run a food-based business (includes follow-on counseling). • Catapult Business Growth Network – 50-hour intensive for small business owners focused on key concepts and tools proven to drive and manage business growth (includes peer mentoring network). • Financial Fitness Boot Camp – Four-day workshop for small business owners focused on financial literacy and financial management basics. • Main Street Digital Program – Assists brick-and-mortar businesses interested in having an online presence.
• SBDC Center for Contracting – Helps small businesses with contract readiness and securing contracts.
• UpStarters Discovery Program – Introduces middle and high school students to entrepreneurship fundamentals.
• Startup programs and workshops delivered in Spanish – like ones delivered by Association de Emprendedor@s.
• Other entrepreneurial support programs and services based on need/demand.

IECE estimates that more than 2,500 small businesses will be served annually through the ERC, with small business owners receiving access to free business counseling, training and mentoring programs.

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20 Cost
To create the ERC and ensure a minimum operating period of 3 years will require an investment of approximately $3.84 million (approximately $1.28 million per year). This will leverage the IECE and SoE current annual investment of over $600,000 in small business technical assistance resources (staff and programs) in addition to the City contribution as provided for in this MOU, and allow for establishment of the location, performing necessary facility improvements, and ongoing space costs, deploying additional staff resources necessary, and support for partner organizations. A sustainability plan is in place that will allow the ERC to operate indefinitely. In addition to seeking ongoing funding through various grants, the intent is to have the planned farmers market; co-working space, incubator and commercial food kitchen/food lab (if applicable) generate sufficient revenue at maturity to cover the annual operating costs.

Reporting
The IECE will report to the City the following key program metrics on a quarterly basis:
• Clients counseled
• Clients trained
• Jobs supported
• Investment capital received
• Government contracts and certifications received
• Aggregate demographic data of clients served, including gender, ethnicity, veteran status (as reported by clients)
• Aggregate business demographic data – industry type (as reported by clients)
• Client success stories
• Additional data, as agreed upon by the IECE and the City of San Bernardino
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21 Packet Pg. 457
22 EXHIBIT B

ARPA CONTRACT REQUIREMENTS

1. COMPLIANCE WITH FEDERAL LAWS AND REGULATIONS

1.1 Subrecipient agrees that it undertakes hereby the same obligations to City that City has undertaken to Treasury by way of City's acceptance of ARPA funds. The obligations thus undertaken by Subrecipient include, but are not limited to, the obligation to comply with Sections 602 and 603 of the Social Security Act as added by Section 9901 of the American Rescue Plan Act of 2021, the United States Department of the Treasury Coronavirus State Fiscal Recovery Fund Award Terms and Conditions, the Rule, and the following federal laws and regulations:
(A) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 C.F.R. Part 200, other than such provisions as Treasury may determine are inapplicable to ARPA and subject to such exceptions as may be otherwise provided by Treasury. This includes ensuring that any procurements using ARPA funds are consistent with the procurement standards in the Uniform Guidance at 2 CFR 200.317 through CFR 200.327, as applicable;
(B) Universal Identifier and System for Award Management (SAM), 2 C.F.R. Part 25, including Appendix A to 2 C.F.R. Part 25; (C) Reporting Subaward and Executive Compensation Information, 2 C.F.R. Part 170, including Appendix A to 2 C.F.R. Part 170; (D) United States Office of Management and Budget (“OMB”) Guidelines to Agencies on Governmentwide Debarment and Suspension
(Nonprocurement), 2 C.F.R. Part 180, including the requirement to include a term or condition in all lower tier covered transactions (contracts and subcontracts described in 2 C.F.R. Part 180, subpart B) that the award is subject to 2 C.F.R. Part 180 and Treasury’s implementing regulation at 31 C.F.R. Part 19;
(E) Governmentwide Requirements for Drug-Free Workplace, 31 C.F.R.

Part 20;
(F) New Restrictions on Lobbying, 31 C.F.R. Part 21;
(G) Uniform Relocation Assistance and Real Property Acquisitions Act of 1970 (42 U.S.C. §§4601-4655) and implementing regulations; Packet Pg. 458
23 (H) Title VI of the Civil Rights Act of 1964 (42 U.S.C. §§ 2000d et seq.) and Treasury’s implementing regulations at 31 C.F.R. Part 22, which prohibit discrimination on the basis of race, color, or national origin under programs or activities receiving federal financial assistance; (I) The Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (42 U.S.C. §§ 3601 et seq.), 4 which prohibits discrimination in housing on the basis of race, color, religion, national origin, sex, familial status, or disability;
(J) Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794), which prohibit discrimination on the basis of disability under any program or activity receiving federal financial assistance; (K) The Age Discrimination Act of 1975, as amended (42 U.S.C. §§ 6101 et seq.), and Treasury’s implementing regulations at 31 C.F.R. Part 23, which prohibit discrimination on the basis of age in programs or activities receiving federal financial assistance; and
(L) Title II of the Americans with Disabilities Act of 1990, as amended (42 U.S.C. §§ 12101 et seq.), which prohibits discrimination on the basis of disability under programs, activities, and services provided or made available by state and local governments or
instrumentalities or agencies thereto.

1.2 Subrecipient further agrees to comply with all environmental, procurement, construction, and other guidelines provided by City.

1.3 Subrecipient will obtain all necessary permits and licenses that are necessary for its performance under this MOU.

1.4 Failure to meet established performance goals and standards or non-compliance with applicable rules and regulations constitutes non-compliance with the terms of this MOU. City is entitled to avail itself of one or more of the following remedies to address noncompliance:
(A) Temporarily withhold cash payments pending correction of deficiencies by Subrecipient;
(B) Disallow all or part of the cost of the activity or action not in compliance
(C) Wholly or partly suspend or terminate the current award for Subrecipient's program;
(D) Withhold further awards for the program; or
(E) Take other remedies that may be legally available.

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24 2. SUBCONTRACTS
Subrecipient will incorporate the same or substantially equivalent requirements as are contained in this MOU (with exception for Commercial General Liability coverage which may be satisfied with $1,000,000 per occurrence/$2,000,000 aggregate for bodily injury, personal injury, and property damage) in many subcontracts that utilize any ARPA funds or that support any ARPA funded project covered by this MOU. Notwithstanding the requirements of this Agreement, some subcontractors may be small, disadvantaged businesses and unable to meet the insurance requirements as defined above. In the event a potential subcontractor cannot meet the insurance requirements contained in this MOU, Subrecipient shall seek City’s consent to allow deviation from the standard insurance requirements. All subcontractors will meet the minimum statutory requirements necessary to conduct business in the state of California. When a project utilizes ARPA funds and funds from other sources, all funds are subject to ARPA regulations. Subrecipient, by entering into a subcontract for performance of any portion of its ARPA funded program, is not relieved of its responsibilities to City as set forth in this MOU.

3. NON-DISCRIMINATION/GRIEVANCE PROCEDURES

3.1 No person with responsibilities in the operation of any project under this MOU may discriminate because of race, creed, color, national origin, age, sex, political affiliation, handicap, beliefs, or marital or familial status.

3.2 Subrecipient will ensure that every effort is made to provide equal opportunity to every potential minority and women's business vendor, contractor, and subcontractor.

4. STANDARD OF CONDUCT/CONFLICT OF INTEREST AND LOBBYING

4.1 No member, officer or employee of Subrecipient or its designee or agents, no member of the governing body of the locality in which the program is situated, and no other public official of such locality or localities who exercises any function or responsibility with respect to the program during that person’s tenure, may have any direct interest, in any contract or subcontract, or the process thereof which conflicts with the work to be performed in connection with the programs activities assigned under this MOU.

4.2 By entering into this MOU, Subrecipient certifies that:
(A) No federal appropriated funds have been paid or will be paid, by or on behalf of Subrecipient, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal Packet Pg. 460
25 loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant loan, or cooperative agreement. (B) If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, Subrecipient must complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions, and other federal disclosure forms as requested.
(C) Subrecipient will require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients certify and disclose accordingly.

4.3 This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification is subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

5. FISCAL CONTROL

5.1 Subrecipient is responsible for the internal control and monitoring of fiscal and programmatic/operational goals and procedures. Subrecipient will establish such fiscal controls and fund accounting procedures as required by federal regulations, or as may be deemed necessary by the City to assure the proper disbursal of, and accounting for, funds paid to Subrecipient under this MOU. Subrecipient must maintain separate accounts within established bookkeeping systems for ARPA funds.

5.2 Subrecipients subject to Title 2 CFR Part 200 must deposit funds in an account requiring two signatures for disbursement and submit to City specimen signatures for all authorized signatories prior to receipt of funds.

5.3 City will pay Subrecipient progress payments at the time and in the manner set forth in the MOU. Payment by City is not to be construed as final in the event that Treasury disallows reimbursement for the Project or any portion thereof. Subrecipient will submit reasonable back-up documentation as specified by City with request for payment.

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26 5.4 Subrecipient is liable for all amounts that are determined to be due by Treasury including, but not limited to, disallowed costs that are the result of Subrecipient's or its contractor's conduct under this MOU.

5.5 City will notify Subrecipient in writing regarding any controversy or proceeding between City and Treasury arising from this MOU. Subrecipient will be permitted to respond regarding the controversy or proceeding.

5.6 All financial transactions must be supported by complete and verifiable source documents. Records must provide a clear audit trail.

6. REVERSION OF ASSETS

6.1 Funds. Upon expiration of this MOU, Subrecipient will transfer to City any remaining ARPA funds in Subrecipient's control at the time of expiration of this MOU.

6.2 Equipment. If Subrecipient has used ARPA funds to purchase tangible, nonexpendable, personal property having a useful life of more than one (1) year and an acquisition cost of $5,000 or more per unit, Subrecipient may use such equipment for the purpose for which it was acquired as long as needed for the program or project described in this MOU. When no longer needed for the original program or project, the equipment must be returned to the City.

6.3 Real Property. If Subrecipient has used ARPA funds to purchase real property, and Subrecipient sells or otherwise disposes of such real property, Subrecipient shall return the ARPA-share of the purchase to City. The ARPA-share shall be computed by applying the percentage of ARPA funds that went toward the cost of the original purchase (and costs of any improvements) multiplied by the fair market value of the property at the time of sale by the Subrecipient.

7. REQUESTS FOR TECHNICAL ASSISTANCE
Subrecipient will refer to the City any regulatory or procedural questions regarding operation of its ARPA-funded Services. All formal requests for technical assistance must be submitted in writing. Requests should specify the problem area, particular assistance being requested and proposed solution if applicable. Informal questions regarding day-to-day program operation may be directed to the designated City representative.

8. RECORDS AND REPORTS

8.1 Subrecipient understands and agrees that City may, at any time, request additional information that may be required for the purpose of making Packet Pg. 462
27 necessary reports to Treasury, or for otherwise evaluating Subrecipient's progress and performance under this MOU. In the event of such requests, Subrecipient will comply by providing the appropriate data within 10 working days from the date of any such request.

8.2 Subrecipient further understands and agrees that the records and additional information described in this section must be retained on a continuing basis for a period of five (5) years after this MOU has expired.

9. CONTRACT RESPONSIBILITY FOR MONITORING AND RECORDS

9.1 City, designated representatives of City, and other appropriate officials must have access to all personnel records, management information, and fiscal data of Subrecipient and any agency or contractor with whom Subrecipient executes a subcontract necessary to carry out any ARPA-funded Services for monitoring purposes. Subrecipient will respond in a timely manner to all identified corrective actions Subrecipient will submit to City all required reports and monitoring corrective action plans on a timely basis, as delineated by City. Records must be maintained as follows:

9.2 Subrecipient agrees to retain all pertinent records under ARPA, including financial records, until advised by City that further retention is unnecessary.

Records must be open and available for inspection by auditors and other staff assigned by City during the normal business hours of Subrecipient.

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21 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Assistance to Small Businesses
Small businesses have faced widespread challenges due to the pandemic, including periods of shutdown, declines in revenue, or increased costs. The final rule provides many tools for recipients to respond to the impacts of the pandemic on small businesses, or disproportionate impacts on businesses where pre-existing disparities like lack of access to capital compounded the pandemic’s effects.

Small businesses eligible for assistance are those that experienced negative economic impacts or disproportionate impacts of the pandemic and meet the definition of “small business,” specifically:

1. Have no more than 500 employees, or if applicable, the size standard in number of employees established by the Administrator of the Small Business Administration for the industry in which the business concern or organization operates, and

2. Are a small business concern as defined in section 3 of the Small Business Act8(which includes, among other requirements, that the business is independently owned and operated and is not dominant in its field of operation).

Impacted Small Businesses
Recipients can identify small businesses impacted by the pandemic, and measures to respond, in many ways; for example, recipients could consider:
✓ Decreased revenue or gross receipts
✓ Financial insecurity
✓ Increased costs
✓ Capacity to weather financial hardship
✓ Challenges covering payroll, rent or
mortgage, and other operating costs
Assistance to small businesses that experienced negative economic impacts includes the following enumerated uses:
✓ Loans or grants to mitigate financial
hardship, such as by supporting payroll
and benefits, costs to retain employees,
and mortgage, rent, utility, and other
operating costs
✓ Technical assistance, counseling, or other
services to support business planning
Disproportionately Impacted Small Businesses
Treasury presumes that the following small businesses are disproportionately impacted by the pandemic:
8 15 U.S.C. 632.

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22 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
✓ Small businesses operating in Qualified
Census Tracts
✓ Small businesses operated by Tribal
governments or on Tribal lands
✓ Small businesses operating in the U.S.
territories
Assistance to disproportionately impacted small businesses includes the following enumerated uses, which have been expanded under the final rule:
✓ Rehabilitation of commercial properties,
storefront improvements & façade
improvements
✓ Technical assistance, business incubators &
grants for start-up or expansion costs for
small businesses
✓ Support for microbusinesses, including
financial, childcare, and transportation costs
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DISCUSSION
City of San Bernardino
Request for Council Action
Date: August 2, 2023
To: Honorable Mayor and City Council Members
From: Charles E. McNeely, City Manager;
Suzie Soren, Director of Human Resources
Department: Human Resources
Subject: Proposed Administrative Policy Establishing the Municipal Volunteer Program (MVP) for the Offices of
Elected Officials (All Wards)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, review and consider the proposed administrative policy and provide direction for modifications or adopt Resolution No. 2023-122 as presented establishing the Municipal Volunteer Program (MVP) – Offices of the Elected Officials Policy.

Executive Summary
On April 19, 2023, the Mayor & City Council unanimously voted to have the administrative policy establishing the Municipal Volunteer Program (MVP) for the Offices of Elected Officials brought forward for consideration. The policy will outline the process for requesting, onboarding and offboarding of volunteers (including interns) in the Offices of Elected Officials. Establishing the policy has no financial impact to the City.

Background
The City of San Bernardino is a charter city operating under a council-manager form of government. The City Charter is the document adopted by voters that defines the organization, powers, functions and essential procedures of the city government and the Municipal Code contains the local laws and regulations adopted by the Mayor and City Council that establish zoning and development standards, traffic regulations, administrative standards and the like.

In addition to the City Charter and Municipal Code, it is important for the City to implement policies and procedures that establish the controls needed to ensure Packet Pg. 470
that City employees and elected and appointed officials are able to operate under a clear set of guidelines that align with the laws and regulations that govern the City.

On February 3, 2021, the Mayor and Council provided conceptual support for the development of a comprehensive administrative policy manual.

On July 21, 2021, the Mayor and City Council did not approve the MVP policy pertaining to the Offices of Elected Officials.

On April 19, 2023, the Mayor and City Council unanimously voted to have the policy brought forward for consideration again.

Discussion
The Municipal Volunteer Program is the perfect opportunity for the community to get involved in civic activities. Volunteers are an important part of any organization and a valuable asset to the City. Volunteers help to increase responsiveness, delivery of services and information input, and provide new program opportunities. A volunteer is an individual, including an unpaid intern, who performs a service for the City without promise, expectation, or receipt of compensation for services rendered. Accordingly, a policy establishing a uniform method for the management of City volunteers to ensure consistency is recommended. This policy will only apply to volunteers in the Offices of the Mayor and City Council and does not apply to volunteers working on a one-day assignment for a community clean-up, park improvement project, or similar activity that does not extend beyond a single day of service.

Recruitment, Selection, and On-Boarding
To begin the recruitment process or to request a volunteer position, a Volunteer Requisition Form (VRF) will need to be submitted to the Human Resources Department for processing. The VRF will be submitted and will list the duties and responsibilities assigned to the volunteer, the duration of assignment, and the supervising employee responsible for the oversight of the volunteer. A background investigation will be conducted on each volunteer before on-boarding with the City. A volunteer may not begin their assignment without completing the required paperwork including a volunteer release and waiver of liability form and a confidentiality and non-disclosure agreement to protect the City’s interests. Once the volunteer is clear for on-boarding with the City, staff shall submit to the Human Resources Department, the Volunteer Access List (VAL) form identifying the information technology and phone access levels requested for the volunteer. Tools and equipment including the office space required for the volunteer will need to be included in the department’s existing authorized budget.

Supervision of Volunteers
Each volunteer who is accepted to a position with the City must have a clearly identified supervisor who is a City employee, responsible for direct management and oversight of that volunteer. The supervisor is responsible for scheduling the volunteer’s hours while keeping the safety of the volunteer a top priority. It is important to consider the Packet Pg. 471
nature of the work volunteers are performing and how much attention each requires when determining the number of volunteers assigned to each supervisor. The nature of the work being performed and how much attention it requires in conjunction with supervisors existing deliverables and priorities should govern the number of volunteers assigned.

Special Considerations
In order to ensure that the City is able to provide the necessary oversight and support for volunteers working with the offices of the Mayor and City Council, this policy establishes limits for the number of assigned volunteers supporting each of our elected officials. Under the MVP – Offices of Elected Officials policy, each Council member will be limited to one (1) volunteer at any given time. Given that the Mayor serves in a fulltime position under the City Charter, up to two (2) volunteers can be assigned at one time to the office of the Mayor. Additionally, in order to avoid any conflicts with the Political Reform Act and the use of City facilities and resources for political purposes, a City volunteer working in an elected official’s office cannot simultaneously work (or volunteer) on the elected official’s campaign.

End of Assignment
At the end of the assignment the Offices of the Mayor and City Council will notify the Human Resources Department and submit a VAL form to turn off all access levels to the City’s systems and process any other necessary paperwork such as the Department of Justice forms to end the subsequent notifications of any activity associated with the volunteer.
2021-2025 Strategic Targets and Goals
Approval of this administrative policy aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community by establishing clear and concise procedures for staff and elected officials to follow that promote a professional environment and contribute toward a culture that attracts, retains, and motivates the highest quality talent.

Fiscal Impact
There is no financial impact associated with the development of an administrative policy beyond dedicated staff time.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, review and consider the proposed administrative policy and provide direction for modifications or adopt Resolution No. 2023-122 as presented establishing the Municipal Volunteer Program (MVP) – Offices of Elected Officials Policy.

Attachments
Attachment 1 Resolution 2023-122
Attachment 2 Exhibit A – Municipal Volunteer Policy (MVP) – Offices of Elected Officials
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Ward:

All Wards
Synopsis of Previous Council Actions:

February 3, 2021 The Mayor and Council provided conceptual support for the development of a comprehensive administrative policy
manual.

July 21, 2021 The Mayor and City Council did not approve the policy pertaining to the Offices of Elected Officials.

April 19, 2023 The Mayor and City Council unanimously voted to have the policy brought forward for consideration once again.

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Resolution No. 2023-122
Resolution 2023-122
August 2, 2023

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RESOLUTION NO. 2023-122

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,

ESTABLISHING THE MUNCIPAL VOLUNTEER
PROGRAM (MVP) – OFFICES OF ELECTED OFFICIALS
POLICY
WHEREAS, the City of San Bernardino is a Charter City operating under a CouncilManager form of government; and WHEREAS, the City Charter is the document adopted by voters that defines the organization, powers, functions and essential procedures of the city government and the Municipal Code contains the local laws and regulations adopted by the Mayor and City Council that establish zoning and development standards, traffic regulations, administrative standards and the like;
WHEREAS, in addition to the City Charter and Municipal Code, it is important for the City to implement policies and procedures that establish the controls needed to ensure that City employees and elected and appointed officials are able to operate under a clear set of guidelines that align with the laws and regulations that govern the City; and WHEREAS, the City Council provided conceptual support for the development of a comprehensive administrative policy manual to ensure that City employees and elected and appointed officials are operating under a clear set of guidelines that govern the City.

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 of San Bernardino Administrative Policy – Municipal Volunteer Program (MVP) – Offices of Elected Officials, attached hereto and incorporated herein as Exhibit A, is hereby approved.

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

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Resolution No. 2023-122
Resolution 2023-122
August 2, 2023

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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 2nd day of August 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. 2023-122
Resolution 2023-122
August 2, 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. 2023-122, adopted at a regular meeting held on the 2nd day of August 2023 by the following vote:

Genoveva Rocha, CMC, City Clerk
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EXHIBIT A
City of San Bernardino - Administrative Policy Manual
City of San Bernardino
Administrative Policy Manual
Subject: Municipal Volunteer Program (MVP) - Offices of Elected Officials Purpose: To establish a policy and procedure for the use of volunteers.

Authority: Resolution No. ______________
Scope:

Unless otherwise stipulated herein, this policy applies to all volunteers working in the offices of elected officials within the Office of the Mayor and the City Council Office.

Qualified volunteers are used for specified tasks and duties to create efficiencies and improve services to the community. Volunteers are an important part of any organization and are a valuable asset to the City. Volunteers help to increase responsiveness, delivery of services and information input, and provide new program opportunities. In addition, volunteers bring new skills and expertise to the City and prompt new enthusiasm. A volunteer is an individual, including an unpaid intern, who performs a service for the City without promise, expectation, or receipt of compensation for services rendered.

Exemption from Scope
None
Policy:

Recruitment & Equal Opportunity
Volunteers may be recruited on a continuous and ongoing basis. To begin the recruitment process a Volunteer Requisition Form (VRF) shall be submitted to the Human Resources Department for processing. The VRF form will be signed by a department head or designee and shall include the duties and responsibilities assigned to the volunteer, the anticipated duration of the assignment, and the supervising City employee responsible for oversight of the volunteer.

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Procedure for the Municipal Volunteer Program (MVP)
City of San Bernardino - Administrative Policy Manual
Community members are encouraged get involved in civic activities through volunteer opportunities with the City. A primary qualification for participation in the process should be an interest in, and an ability to assist the City in serving the public. All parties should understand that the recruitment of volunteers is enhanced by creative and interesting assignments.

The City affords equal opportunity to all qualified volunteers, and prohibits discrimination on the basis of race, religious creed, disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age (40 and over), sexual orientation, or military and veteran status or other basis protected by law.

Background Investigation
A background investigation will be conducted on each volunteer before onboarding with the City. The investigation may include references and background information, including criminal records of individual candidate’s consistent with applicable state and federal laws and regulations. The volunteer will not be privy to any information revealed during the course of the background investigation or receive feedback about the investigation. Any false statement, either written or verbal, will cause the volunteer’s name to be removed from consideration for the volunteer program and will be cause for immediate dismissal if an appointment has been made.

Selection and Placement
Service as a volunteer with the City will begin with an official notice of acceptance or appointment to a volunteer position. Notice may only be given by an authorized representative of the City. No volunteer will begin any assignment until they have been officially accepted for a position and completed all required screening and paperwork, including but not limited to a volunteer release and waiver of liability. Volunteers should be placed only in assignments or programs that are consistent with their knowledge, skills, abilities and the needs of the City.

The department head or designee shall submit to the Human Resources Department, the Volunteer Access List (VAL) form inclusive of the department head’s signature identifying the information technology and phone access levels requested for the volunteer. Tools and equipment including the office space required for the volunteer will need to be included in the department’s existing authorized budget.

Confidentiality and Non-Disclosure
All volunteers are required to abide by the same standards of confidentiality and nondisclosure required by employees of the City. With appropriate clearance, volunteers Packet Pg. 478
Procedure for the Municipal Volunteer Program (MVP)
City of San Bernardino - Administrative Policy Manual
may have access to confidential, sensitive, or privileged information or materials.

Unless otherwise directed by a supervising City employee, all such information shall be considered confidential. Only that information specifically identified and approved by authorized personnel will be released. The use of any confidential, sensitive, or privileged materials, and removing materials or reproductions is strictly prohibited, except as required in the rightful discharge of the duties performed by the volunteer.

Each volunteer will be required to sign a nondisclosure agreement before being given an assignment. Subsequent unauthorized disclosure of any confidential information, verbally, in writing or by any other means, by the volunteer is grounds for immediate removal. Additionally, the City may seek other criminal or civil sanctions or damages allowed by law.

Supervision of Volunteers
Each volunteer who is accepted to a position with the City must have a clearly identified supervisor, a City employee, responsible for direct management and oversight of that volunteer. The supervisor is responsible for scheduling the volunteer’s hours while keeping the safety of the volunteer a top priority, will be responsible for day-to-day management and guidance of the work of the volunteer, and should be available to the volunteer for consultation and assistance. A volunteer may be assigned and act as a supervisor of other volunteers provided that the supervising volunteer is under the direct supervision of a City employee at all times.

Following are some considerations to keep in mind while supervising volunteers:
(a) Take the time to introduce volunteers to employees on all levels. (b) Ensure volunteers have work space and necessary office supplies. (c) Make sure the work is challenging. Do not hesitate to give them an assignment or task that will tap these valuable resources.

It is important to consider the nature of the work volunteers are performing and how much attention each requires when determining the number of volunteers assigned to each supervisor. For example, assignments with high degrees of collaboration and interaction might productively tolerate no more than one or two volunteers. The nature of the work being performed and how much attention it requires in conjunction with supervisors existing deliverables and priorities should govern the number of volunteers assigned.

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Procedure for the Municipal Volunteer Program (MVP)
City of San Bernardino - Administrative Policy Manual
Mayor and City Council Special Considerations
In order to ensure that the City is able to provide the necessary oversight and support for volunteers working with the offices of the Mayor and City Council this policy establishes limits for the number of assigned volunteers supporting each of our elected officials. Under this policy, each Councilmember and the Mayor will be able to have one (1) volunteer at any given time. Additionally, in order to avoid any conflicts with the Political Reform Act and the use of City facilities and resources for political purposes, a City volunteer working in an elected official’s office cannot simultaneously work (or volunteer) on the elected official’s campaign.

Property and Equipment
Volunteers will be issued an identification card that must be worn at all times while onsite or performing the duties of their assignment with the City. Volunteers shall not maintain they represent the City in any matters outside the scope of their assignment, and will be identified as City volunteer in all communications. If a working title is used, the title will include the volunteer designation for enhanced transparency. For example, if the volunteer is an office worker then title used by the volunteer would be “VOLUNTEER Office Worker.”
All property and equipment will need to remain onsite or under the supervision of the City employee. Volunteers shall not be allowed to drive City vehicles or drive their personal vehicle for City business.

Fitness for Duty
No volunteer shall report to their assignment when their judgment or physical condition has been impaired by alcohol, medication, and other substances.

Dress Code
Volunteers are responsible for presenting a professional image to the community.

Volunteers shall dress appropriately for the conditions and performance of their duties.

End of Assignment
Any fixed and portable equipment issued by the City is for official and authorized use only. Any property or equipment issued to a volunteer will remain the property of the City and shall be returned at the end of the assignment to the volunteer supervisor.

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Procedure for the Municipal Volunteer Program (MVP)
City of San Bernardino - Administrative Policy Manual
Procedure:

Responsibility Action
Requesting Department 1. Prepare a Volunteer Requisition Form
Human Resources Department 2. Contact requesting department to review volunteer criteria and
when appropriate forward
qualified candidates for
department review
Human Resources Department 3. Complete Background
Investigation
Human Resources Department 4. Onboarding paperwork
Requesting Department 5. Complete the Volunteer Access
List form
Requesting Department 6. On completion of volunteer’s
assignment provide notification to
the Human Resources
Department + submit the
Volunteer Access form

ATTACHMENTS

1. Volunteer Requisition Form (VRF)

2. Volunteer Access List (VAL)

3. Confidentiality and Non-Disclosure Agreement

4. Volunteer Release and Waiver of Liability
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Volunteer Requisition Form

CITY OF SAN BERNARDINO
PURPOSE: To request a recruitment to appoint a volunteer or to process associated paperwork to appoint a volunteer.

INSTRUCTIONS: Forward the completed form (electronic or hard copy) to the Human Resources Department by Wednesday in order for the recruitment to be considered to open on Monday. For assistance call 909-384-5104.

Department Name:

Assigned Division:

Primary Contact: Ext:

Alternate Contact: Ext:

Request date to open recruitment:

Number of volunteers to be appointed:

Duration of Assignment:

ANTICIPATED TIMEFRAME
Volunteer’s Supervisor:

PRINT NAME (City Employee)
Department Head Signature:

Department Head: Date:

PRINT NAME
Established: 03/17/2021
Justification/Reason for Request:

Volunteer’s Assigned Duties & Responsibilities:

Desired Knowledge, Skills, & Abilities that will meet the needs of the Department:

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Est: 03/17/21
Volunteer Access List (VAL)
Action: Appointment
Effective Date:

Name, Title & Department /Division Assignment
Name:

Include legal name and, if applicable, preferred/nickname in parentheses New Name if Changed:

Department: Division:

Limited Term: ☐Yes ☐ No
If “Yes” Anticipated End Date:

Existing Desk/Landline Phone #:

Existing Desk/Landline Phone Extension #:

Work Scheduled & Location
Employee’s Work Location: Work Days & Hours:

Information Technology & Phone Access Requests

REQUEST ACCESS
☐ Windows Account (includes Internet Access) ☐ Activate ☐ Modify ☐ Remove ☐ E-Mail Box ☐ Activate ☐ Modify ☐ Remove
☐ U-Drive/ S-Drive/ T-Drive ☐ Activate ☐ Modify ☐ Remove ☐ New Desk/Landline Phone ☐Main#: Ext#: ☐ Activate ☐ Modify ☐ Remove ☐ CRM System - Assign Open Requests to: ☐ Activate ☐ Modify ☐ Remove ☐ Intranet Phonebook Entry ☐ Activate ☐ Modify ☐ Remove ☐ Other: ☐ Activate ☐ Modify ☐ Remove
☐ Other: ☐ Activate ☐ Modify ☐ Remove
☐ Other: ☐ Activate ☐ Modify ☐ Remove
Badge
☒ City Badge Card: Card ☐ Activate ☐ Modify ☐ Remove ☐ Replace** Card Access Hours:
☐ PD Access Badge Card: ☐ Activate ☐ Modify ☐ Remove ☐ Replace Department Point of Contact:

Department Head Signature: Date:
*Please note that supervisors are responsible at the time of separation to ensure all City property items are collected (badge, parking permits, etc).
**A $10 replacement fee will be charged to volunteers for lost, stolen or damaged badges.

Notes: Please identify permission level for requests.

SEPARATIONS: Please list the last date physically worked.

Temporarily Disable All Access
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CONFIDENTIALITY AND NON-DISCLOSURE AGREEMENT
I, _________________________, as a volunteer of the City of San Bernardino (“City”), will abide by the same standards of confidentiality and non-disclosure required by employees of the City. I understand that I may come into contact with confidential, sensitive, or privileged materials. I agree to maintain the confidentiality of such information and will not divulge such materials to anyone for any purpose without the express consent or direction of my supervisor or other City personnel. I agree that I will not use any confidential, sensitive, or privileged materials for myself or others, and that I will not take any materials or reproductions thereof containing confidential, sensitive, or privileged materials from City facilities at any time during or after my volunteer service, except as required in the rightful discharge of my duties for the City. I understand and agree that my failure to comply with the confidentiality requirements set forth in this Agreement is grounds for discipline up to and including termination of the volunteer relationship. Additionally, the City may seek other criminal or civil sanctions or damages allowed by law.

I understand that confidential information covered by this Agreement includes:
a) Any attorney-client privileged materials, attorney work product, or closed session materials.
b) City employee personal identification information, employee work schedules, employee numbers, code combinations to doors, gates, secure areas, etc., and any other private personal, protected or sensitive information that is only disclosed to volunteers by virtue of their service to the City.
c) All data and information related to the City computer systems, computer printouts, internal memorandums, briefing notes, e-mails, passwords and any other material, whether written or oral, that relates to the function of the City. d) All personal data and information learned, discovered, overheard, etc., in the course of volunteer’s service related to a private, protected or sensitive nature.

The restrictions of this Agreement regarding use and disclosure of information shall continue to apply after termination of the volunteer relationship.

I HAVE READ AND UNDERSTAND THIS AGREEMENT AND AGREE TO COMPLY WITH IT IN EVERY RESPECT.

VOLUNTEER DATE
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City of San Bernardino

VOLUNTEER RELEASE & WAIVER OF LIABILITY
Required by the City of San Bernardino for all volunteers.

Please read carefully! This is a legal document that affects your legal rights.

I want to participate in volunteer activities for the City of San Bernardino, henceforth referred to as City. As a City volunteer, I freely, voluntarily, and without duress execute this Release and Waiver under the following terms:

1. Assumption of Risk. I understand that my work for the City may include activities that are hazardous and/or physically strenuous and that I may be exposed to personal injury or damage to my property as a result of my activities, the activities of other persons, or the conditions under which my services are performed while participating in City volunteer activities.

Though the City will provide me with support, supervision, training, and supplies to accomplish assigned tasks, I agree to the following:
 □ I will follow all instructions provided by the City, its employees, or volunteer coordinators.  □ I will only use equipment that I know how to operate and use safely.  □ I will not undertake any activity for which I do not feel sufficiently prepared or able and until I have received instructions.  □ I will take all reasonable precautions to avoid injury to myself and to others and damage to property.  □ Finally, I agree to assume the risk of injury or harm and release the City, its officers, directors, employees, and other City volunteers from all liability for injury, illness, death, or property damage arising from my work as avolunteer.

2. Waiver and Release. I hereby release and forever discharge and agree to indemnify, protect, defend and hold the City, its elected officials, boards, commissions, officers, agents and employees free and harmless from any and all claims, liabilities, losses, liens, damages, costs and expenses resulting from injury or death of any person or persons’ property damage or that may arise out of my work as a volunteer. I understand that this release discharges the above entities from any liability that may result from my work whether or not caused by the negligence of the City.

3. Medical Treatment. I release and discharge the City from any claim that arises or may arise due to any first aid, medical treatment, or service rendered to me.

4. Insurance. The City does not have responsibility for providing any health, medical or disability insurance coverage forme.

IT IS MY RESPONSIBILITY AS A VOLUNTEER TO ENSURE I HAVE MEDICAL/HEALTH INSURANCE. □ I understand that if I drive my personal vehicle for City business while volunteering, I must have a valid driver’s license and proof of auto insurance.

5. Photographic Release. I grant to the City the right to use photographic images and video or audio recordings of me that are made by the City or others during my volunteer work for the City.

6. Duration of Release. My agreement to the terms in this Release & Waiver applies as long as I volunteer for the City.

7. Other. I agree that this Release and Waiver is intended to be as broad and inclusive as permitted by the laws of California and that this Release and Waiver is governed by and will be interpreted according to the laws of California. I understand that should any part of this Release and Waiver be ruled invalid by a court, the other parts will remain valid and continue to be in effect.

I certify that I am at least eighteen (18) years of age or have had this document signed by my parent or guardian.

PRINT Adult’s Name If consenting for a minor, print name(s) on lines above and below Street Address
City, State, Zip Telephone E-mail Address
__
Signature Date Emergency Contact Telephone
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PUBLIC HEARING
City of San Bernardino
Request for Council Action
Date: August 2, 2023
To: Honorable Mayor and City Council Members
From: Charles E. McNeely, Interim City Manager;
Mary Lanier, Agency Director of Community, Housing, and Economic Development
Department: Community, Housing, & Economic Development (CED) Subject: Public Hearing on Annexation No. 35 to Community Facilities District 2019-1 (Ward 2)
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. 2023-123 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. 35); and

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

4. Adopt Resolution No. 2023-124 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. 35); and

5. Introduce, read by title only, and waive further reading of Ordinance No. MC1617 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, Packet Pg. 486
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-1617 for August 16, 2023.

Executive Summary
The recommended actions will allow a new development within the City boundaries to annex into Community Facilities District (CFD) 2019-1. The public hearing is a statutorily required component of this process. The property owner has petitioned the City to approve the annexation request; whereby special assessments will be levied annually to offsite general fund expenditures related to maintenance and improvements within the immediate area of the development.

Background
On June 21, 2023, the Mayor and City Council adopted Resolution No. 2023-085, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”. A public hearing was set for August 2, 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 June 27, 2023, at 1:12 p.m. in Book 91 Page 22, Document No. 2023-0157764 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 0.45 gross acres of a 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 Starbucks. 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. Maintenance and operation of water quality improvements including storm drainage and flood protection facilities; and
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4. City and County costs associated with the setting, levying and collection of the special tax, and in the administration of the District including the contract administration and for the collection of reserve funds.

The proposed area to be annexed into the CFD will be included in Tax Zone 36 and is located at the northeast intersection of Eucalyptus Dr. and E Highland Ave., as shown in Attachment #12.

The maximum annual special tax for this development has been calculated to be $6,648 per acre for FY 2023/24. Special Tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. The property owners have agreed to initiate and conduct the CFD annexation proceedings pursuant to the 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 MelloRoos Act in 1982, for the annexation into the CFD and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election.

In order to annex property to CFD No. 2019-1 pursuant to the provisions of California Government Code Section 53311 et seq., the City must adopt a series of three statutorily required Resolutions and an Ordinance which are summarized below. • Resolution declaring City intent to annex territory to Community Facilities District No. 2019-1 including the boundary of the area to be annexed and the rate and method of apportionment of special taxes within the annexation area (the special tax applies only to properties within the annexation area), adopted June 21, 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 August 16, 2023.

Discussion
The Resolution of Intention called for a public hearing to be held on August 2, 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 Packet Pg. 488
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. 2023-123, it may immediately proceed to the opening of the ballots and adopt Resolution No. 2023-124 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 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 $2,958 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:

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1. Hold a Public Hearing; and

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

5. Introduce, read by title only, and waive further reading of Ordinance No. MC1617 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-1617 for August 16, 2023.

Attachments
Attachment 1 Resolution No. 2023-123- 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. 2023-124- Resolution Declaring Election Results Attachment 6 Exhibit A Certificate of Election Results
Attachment 7 Ordinance No. MC-1617
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:

Second Ward
Synopsis of Previous Council Actions:

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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
June 21, 2023 Mayor and City Council adopted Resolution No. 2023-085, 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. 2023-123
Resolution No. 2023-123
July 21, 2023

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RESOLUTION NO. 2023-123

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.
35)
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 June 21, 2023, duly adopted Resolution No. 2023-085 (the “Resolution of Intention”) declaring its intention to annex certain territory to CFD No. 2019- 1 (Maintenance Services) and to levy a special tax within that territory to pay for certain services and setting a time and place for the public hearing on the proposed annexation for August 2, 2023; and
WHEREAS, the territory proposed to be annexed is identified in a map entitled "Annexation Map No. 35 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on June 27, 2023, in Book 91 of Maps of Assessment and Community Facilities Districts at Page 22, in the office of the San Bernardino County Recorder; and Packet Pg. 492
Resolution No. 2023-123
Resolution No. 2023-123
July 21, 2023

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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 August 2, 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 August 2, 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 Packet Pg. 493
Resolution No. 2023-123
Resolution No. 2023-123
July 21, 2023

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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 August 2, 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 June 9, 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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July 21, 2023

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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 August 2, 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 August 2, 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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Resolution No. 2023-123
Resolution No. 2023-123
July 21, 2023

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APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 2nd day of August 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. 2023-123
Resolution No. 2023-123
July 21, 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. 2023-123, adopted at a regular meeting held on the 2nd day of August 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 Services) (the “CFD No. 2019-1”) Annexation No. 35 is currently comprised of one (1) parcel, located within the City boundaries. The property is identified by the following San Bernardino County Assessor's Parcel Number (APN).

APN Owner Name
0285-742-18 Simoncre JC Saguaro III LLC
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EXHIBIT B

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES)

OF THE CITY OF SAN BERNARDINO
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2019-1 (Maintenance Services) (the “CFD No. 2019-1” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2019, in an amount determined by the City Council of the City of San Bernardino, acting in its capacity as the legislative body of CFD No. 2019-1, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2019-1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2019-1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the 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 inquiries regarding the Special Taxes; the costs of the City, CFD No. 2019-1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees including payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2019-1 for any other administrative purposes of CFD No. 2019-1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager of the City of San Bernardino, or his or her designee. “Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the March 1 preceding the Fiscal Year in which the Special Tax is being levied, and that have not been issued a building permit on or prior to the March 1 preceding the Fiscal year in which the special tax is being levied.
“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of San Bernardino. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.

City of San Bernardino 1
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 499 “Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction building permit issued for construction of a building of Non-Residential Property and any Building Square Footage subsequently added to a building of such Taxable Property after issuance of a building permit for expansion or renovation of such building. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD” or “CFD No. 2019-1” means the City of San Bernardino Community Facilities District No. 2019- 1 (Maintenance Services).
“City” means the City of San Bernardino.
“Contingent Special Tax B Requirement” means that amount required in any Fiscal Year, if the POA is unable to maintain the Service(s) to: (i) pay the costs of Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Services as determined by the Administrator; less a credit for funds available to reduce the annual Special Tax B (Contingent) levy as determined by the Administrator. “County” means the County of San Bernardino.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 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 1st of any year to and including the following June 30th.
“Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.
“Maximum Special Tax A” means the Maximum Special Tax A, as determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property within CFD No. 2019-1.

City of San Bernardino 2
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 500 “Maximum Special Tax B (Contingent)” means the Maximum Special Tax B (Contingent), as determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property within CFD No. 2019-1.
“Multi-Family Residential Property” means any Assessor’s Parcel of residential property that consists of a building or buildings comprised of attached Residential Units sharing at least one common wall with another unit.
“Non-Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a building permit(s) was issued for a non-residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. “Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain landscaping within a Tax Zone. “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property with the same Tax Zone, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property with the same Tax Zone, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property with the same Tax Zone. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. “Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Service(s)” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2019-1 as set forth in the documents adopted by the City Council at the time the CFD was formed. “Single Family Residential Property” means any residential property other than Multi-Family Residential Property on an Assessor’s Parcel.
“Special Tax(es)” means the Special Tax A and/or Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
“Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement. "Special Tax A Requirement" means for each Tax Zone, that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs for such Tax Zone of CFD No. 2019-1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax A Requirement include funds for Bonds.

City of San Bernardino 3
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 501 “Special Tax B (Contingent)” means the Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Contingent Special Tax B Requirement, if required.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2019-1, which are not Exempt Property.
“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax. Appendix C identifies the Tax Zone in CFD No. 2019-1 at formation; additional Tax Zones may be created when property is annexed into the CFD.
"Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1. "Tract(s)" means an area of land; i) within a subdivision identified by a particular tract number on a Final Map, ii) identified within a Parcel Map; or iii) identified within lot line adjustment approved for subdivision.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.

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

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

For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non-Residential Property, all such Assessor’s City of San Bernardino 4
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 502 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
1 Taxable
Unit
RU
Maximum
Special Tax A
$961
Tract
TR 17170
Land Use Category
Single Family Residential Property
(ii) Increase in the Maximum Special Tax A
On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories
In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax A for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Approved property Fiscal Year 2019-20 within Tax Zone 1 is identified in Table 2 below:

City of San Bernardino 5
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 503 TABLE 2

MAXIMUM SPECIAL TAX A RATES

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

TABLE 3

MAXIMUM SPECIAL TAX A RATES

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

2. Special Tax B (Contingent)
The City Council shall levy Special Tax B (Contingent) only in the event the POA defaults in its obligation to maintain the Contingent Services, which default shall be deemed to have occurred, as determined by the Administrator, in each of the following circumstances:
(a) The POA files for bankruptcy;
(b) The POA is dissolved;
(c) The POA ceases to levy annual assessments for the Contingent Services; or (d) The POA fails to provide the Contingent Services at the same level as the City provides similar services and maintains similar improvements throughout the City and within ninety (90) days after written notice from the City, or such longer period permitted by the City Manager, fails to remedy the deficiency to the reasonable satisfaction of the City Council. a. Developed Property
(i) Maximum Special Tax B (Contingent)
City of San Bernardino 6
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 504 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
1 Taxable
Unit
RU
Maximum Special
Tax B (Contingent)
$0
Tract
TR 17170
Land Use Category
Single Family Residential Property
(ii) Increase in the Maximum Special Tax B (Contingent) On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories
In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final. b. Approved Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 5 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.

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

TABLE 5

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

APPROVED PROPERTY
Tax
Zone
1 Taxable
Unit
RU
Maximum Special
Tax B (Contingent)
$0
Tract
TR 17170
Land Use Category
Single Family Residential Property
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 City of San Bernardino 7
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 505 Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. c. Undeveloped Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 6 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.

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

TABLE 6

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

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

D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX

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

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

2. Special Tax B (Contingent)
Commencing with Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for each following Fiscal Year, the City Council shall determine the Contingent Special Tax B (Contingent) Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of City of San Bernardino 8
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 506 Taxable Property within such Tax Zone until the aggregate amount of Special Tax B (Contingent) equals the Special Tax B ( Contingent) Requirement for such Tax Zone. The Special Tax B (Contingent) Shall be levied for each Fiscal Year as follows:

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

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

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

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

G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2019-1, any Assessor’s Parcels; (i) which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) with public or utility easements making impractical their utilization for other than the 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 determined by the Administrator.

H. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative(s) of CFD No. 2019-1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

City of San Bernardino 9
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 507 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.

City of San Bernardino 10
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 508

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 36
CUP 22-03
Item
1 Description
Lighting
Estimated Cost
$120
2 3
4 Streets $1,454
$129
$255
$1,000
$2,958
Drainage
Reserves
5 Admin
Total
Special Tax B Contingent Services – There are no services being funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2019-1. However, additional Tax Zones may have Special Tax B Contingent Services being provided.

TAX ZONE 36
FY 2023-24 MAXIMUM SPECIAL TAX RATES

DEVELOPED PROPERTY AND APPROVED PROPERTY
Land Use
Category
Non-Residential Property
Taxable
Unit
Acre
Maximum
Special Tax A
$6,648
Maximum
Special Tax B
$0
TAX ZONE 36
FY 2023-24 MAXIMUM SPECIAL TAX RATES

UNDEVELOPED PROPERTY
Taxable
Unit
Acre
Maximum
Special Tax A
$6,648
Maximum
Special Tax B
$0
City of San Bernardino
Community Facilities District No. 2019-1 (Maintenance Services) 11 Packet Pg. 509

TAX ZONE SUMMARY
Tax
Zone
1 2
3 4
5 6
7 Tract
APN
17170
Fiscal
Year
Maximum
Special Tax A
$961 / RU
Maximum
Annexation Special Tax B
Original
1 Subdivider
Santiago Communities, Inc.

JEC Enterprises, Inc.

GWS #4 Development, LLC
Devore Storage Facility, LLC
TH Rancho Palma, LLC
Strata Palma, LLC
2019-20
2019-20
2020-21
2019-20
2020-21
2020-21
2020-21
2021-22
2021-22
2021-22
2021-22
2022-23
2022-23
2022-23
2022-23
2022-23
2022-23
2022-23
2022-23
2022-23
2022-23
2022-23
2022-23
2022-23
2022-23
2022-23
$0 / RU
17329 $473 / RU $0 / RU
2 3
4 5
6 7
8 9
PM 19814
0266-041-39
TR 20006
PM 19701
PM 20112
TR 20293
LM 2019-021
TR 20189
LD 1900086
TR 20305
LLA 2020-004
TR 5907
0136-191-21
TR 20216
TR 20145
CUP 20-07
TR 20258
LM 21-10
$608 / Acre
$1,136 / Acre
$344 / RU
$0 / Acre
$0 / Acre
$57 / RU
$528 / Acre
$0 / Acre
$334 / Acre
$232 / Acre
$154 / Acre
$0 / Acre
$0 / Acre
$0 / Acre
$0 / Acre
$0 / Acre
$0 / Acre
$0 / RU
$1,895 / Acre
$3,197 / Acre
$2,913 / Acre
$815 / Acre
$490 / Acre
$1,472 / Acre
$175 / Acre
$1,169 / Acre
$2,268 / Acre
$5,277 / Acre
$7,089 / Acre
$646 / RU
San Bernardino Medical Center LLC
ICO Fund VI, LLC
TR 2600 Cajon Industrial LLC
Central Commerce Center, LLC
Lankershim Industrial, LLC
Prologis, LP
Dreamland Real Estate Holdings
Magic Laundry Services, Inc.

Ahmad Family Trust
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
29 30
31 Gateway SB, LLC
RCH-CWI Belmont, LP
George A. Pearson
RGC Family Trust
170 East 40th Street, LLC
108 Highland, LP

SBABP IV, LLC
1300 E Highland Ave LLC
Vone SB, LLC
PI Properties, LLC
Pacific West Company, et al.
$7,433 / Acre $0 / Acre
$588 / RU $0 / RU
$5,284 / Acre
$6,397 / Acre
$807 / Acre
$847 / Acre
$1,385 / Acre
$174 / RU
$0 / Acre
$0 / Acre
$0 / Acre
$320 / Acre
$978 / Acre
$17 / RU
$45 / RU
LM 22-04
LM 2021-013
TR 4592
LLA 2020-005
TR 20494
TR 20495 $204 / RU
To Be Determined
$1,851 / Acre
$347 / RU
$922 / Acre
$2,957 / Acre
$358 / Acre
28 29
30 31
32 PM 20320
TR 17329
LL 2022-11
PM 20143
PM 20334
PM 3613,
2022-23
2023-24
2022-23
2022-23
2023-24
$292 / Acre
$0 / RU
$372 / Acre
$1,855 / Acre
$94 / Acre
SB Drake Central Avenue LLC
Verdemont Ranch 20, LLC
CIVF VI – CA1W01, LLC
California Cajun Properties LLC
Elliott Precision Block Co.
32 33
34 35
33 34
35 36
2022-23
2023-24
2023-24
2023-24
$1,094 / Acre
$2,785 / Acre
$533 / Acre
$186 / Acre
$158 / Acre
$193 / Acre
$0 / Acre
S.B. Universal Self Storage LLC 4230 & 4250
PM 20392
CUP 21-16
CUP 22-03
GWS#7 Development, LLC
MLG SB Land LLC &
Grandfather’s Land Holdings LLC
$6,648 / Acre SimonCRE JC Saguaro III, LLC
City of San Bernardino
Community Facilities District No. 2019-1 (Maintenance Services) 12 Packet Pg. 510

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

City of San Bernardino 13
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 511

APPENDIX B

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

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

The above services shall be limited to those provided within the boundaries of CFD No. 2019-1 or for the benefit of the properties within the boundaries of CFD No. 2019-1, 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.

City of San Bernardino 14
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 512

APPENDIX C

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

PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA BOUNDARIES City of San Bernardino
Community Facilities District No. 2019-1 (Maintenance Services) 15 Packet Pg. 513
Packet Pg. 514
Packet Pg. 515

EXHIBIT C

CITY OF SAN BERNARDINO

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 35
(August 2, 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
SimonCRE JC Saguaro III, LLC 0.45 1
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of San Bernardino (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

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 July 19, 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 August 2, 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 August 2, 2023.

Very truly yours,
Genoveva Rocha, CMC, City Clerk
Packet Pg. 516
TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

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

SimonCRE JC Saguaro III, LLC
Attn: Joshua Simon
6900 E. 2nd Street
Scottsdale, AZ 85251
0285-742-18

CITY OF SAN BERNARDINO

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

Shall the City Council of the City of San Bernardino be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex territory to Community Facilities District No. 2019-1 (Maintenance Services) adopted by the City Council on June 21, 2023 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 35 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__.

Joshua Simon
Manager
Signature
Print Name
Title
Packet Pg. 517
Resolution No. 2023-124
Resolution No. 2023-124
July 21, 2023

Page 1 of 3 ends

RESOLUTION NO. 2023-124

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. 35)
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. 2023-123 calling a special election for August 2, 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 August 2, 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 Packet Pg. 518
Resolution No. 2023-124
Resolution No. 2023-124
July 21, 2023

Page 2 of 3 ends

Section 53339.8, to annually levy special taxes within the territory to be annexed to pay the costs of the services to be provided by the CFD No. 2019-1 as specified in Resolution No. 2023-085 adopted by the Mayor and City Council on June 21, 2023. The boundaries of the territory annexed are shown on the map entitled, "Annexation Map No. 35 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on June 27, 2023, in Book 91 of Maps of Assessment and Community Facilities Districts at Page 22, 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 2nd day of August 2023.

Helen Tran, Mayor
City of San Bernardino
Attest:

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

Sonia Carvalho, City Attorney
Packet Pg. 519
Resolution No. 2023-124
Resolution No. 2023-124
July 21, 2023

Page 3 of 3 ends

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss

CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2023-124, adopted at a regular meeting held on the 2nd day of August 2023 by the following vote:

Genoveva Rocha, CMC, City Clerk
Packet Pg. 520

EXHIBIT A

CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 35

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 June 9, 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
SimonCRE JC Saguaro III, LLC 1 1
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)
Packet Pg. 521
Ordinance No. MC-1617
1 ORDINANCE NO. MC-1617

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 June 21, 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 Packet Pg. 522
Ordinance No. MC-1617
2 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
Packet Pg. 523
Ordinance No. MC-1617
3 Attest:

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

Sonia Carvalho, City Attorney
Packet Pg. 524
Ordinance No. MC-1617
4 CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss

CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Ordinance No. MC-1617, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the 2nd day of August 2023. Ordinance No. MC-1617 was approved, passed and adopted at a regular meeting held the ____ day of ______, 2023 by the following vote:

Genoveva Rocha, CMC, City Clerk
Packet Pg. 525

EXHIBIT A

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

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in Exhibit B to this resolution of intention.

Packet Pg. 526

EXHIBIT B
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) SPECIAL TAX FISCAL YEAR 2023-24
(Effective as of August 16, 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 Packet Pg. 527
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
35 SimonCRE JC Saguaro III, LLC 0285-742-18
Packet Pg. 528
DocuSign Envelope ID: 0F9AA524-33AF-4C7F-81A2-E34B1C803F68

PETITION TO THE CITY COUNCIL OF THE CITY OF SAN BERNARDINO

REQUESTING ANNEXING TERRITORY INTO A COMMUNITY FACILITIES DISTRICT NO. 2019-1 OF THE CITY OF SAN BERNARDINO AND A WAIVER WITH RESPECTS

TO CERTAIN PROCEDURAL MATTERS UNDER THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 AND CONSENTING TO THE LEVY OF SPECIAL TAXES

THEREON TO PAY THE COSTS OF SERVICES TO BE PROVIDED BY THE

COMMUNITY FACILITIES DISTRICT

1. The undersigned requests that the City Council of the City of San Bernardino, initiate and conduct proceedings pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”) (Government Code Section 53311 et seq.), to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) (the “Community Facilities District”) of the property described below and consents to the annual levy of special taxes on such property to pay the costs of services to be provided by the community facilities district.

2. The undersigned requests that the community facilities district provide any services that are permitted under the Act including, but not limited to, all necessary service, operations, administration and maintenance required to keep the landscape lighting, street lighting, traffic signals, flood control facilities, ground cover, shrubs, plants and trees, irrigation systems, graffiti removal, sidewalks and masonry walls, fencing entry monuments, tot lot equipment and associated appurtenant facilities within the district in a healthy, vigorous and satisfactory working condition.

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

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

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

6. The undersigned hereby consents to and expressly waives any and all claims based on any irregularity, error, mistake or departure from the provisions of the Act or other laws of the State and any and all laws and requirements incorporated therein, and no step or action in any proceeding relative to annexing territory into Community Facilities District No. 2019-1 of the portion of the incorporated area of the Packet Pg. 529
DocuSign Envelope ID: 0F9AA524-33AF-4C7F-81A2-E34B1C803F68 City of San Bernardino or the special election therein shall be invalidated or affected by any such irregularity, error mistake or departure.
5/10/2023 IN WITNESS WHEREOF, I hereunto set my hand this ____ day of __________, 20___.

SimonCRE JC Saguaro III, LLC
By: ____
Name:

Title:
_____________________
Joshua Simon
Manager
OWNER'S PROPERTY:

TRACT MAP OR PARCEL MAP NO.
or PROJECT NO. Tract No. 10810, M.B. 159/12-13
OWNER'S MAILING ADDRESS:
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____________________________
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Scottsdale, AZ 85251
__________________________________________
__________________________________________

FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY COUNCIL OF THE CITY OF SAN BERNARDINO THIS ____ DAY OF __________, 20___.
_____________________________________
City Clerk of the City Council of the
City of San Bernardino
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DocuSign Envelope ID: E92A3FA9-615D-4D53-BC7B-5012323D78D6 Acknowledgment Regarding Property to be Included into Community Facilities District No. ꢀ2ꢀ01ꢀ9ꢀ-1ꢀ The developer/property owner of (Tract No. / Assessor’s Parcel No.) _____
02 _
8 _
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1 _
8 ___________
hereby acknowledges that: If the landscaping, drainage, lighting and eligible public improvements within the Community Facilities District No. 2019-1 ꢀꢀꢀꢀꢀ the maintenance areas of (Assessor’s Parcel Nos.) ______
0 _
2 _
8 _
57 _
4 _
2 _
1 _
8 _____________, which is to be
included in the Community Facilities District No.
ꢀ
2ꢀ0ꢀ1ꢀ9ꢀ-1ꢀ of the City of ꢂꢃꢄꢁ ꢅꢆꢇꢄꢃꢇꢈꢉꢄꢊ are completed prior to the levy and collection of special taxes upon property within said tract for the maintenance of such landscape and improvements, the developer/property owner will continue to be responsible for and will maintain the landscaping, drainage, lighting, and eligible public improvements within such maintenance areas at its sole expense, and the City will not assume responsibility for the maintenance of such landscaping, drainage, lighting and eligible public improvements until such time as the City is able to collect such special taxes to pay the costs of the maintenance of such landscaping, drainage, lighting, and eligible public improvements.

DATED: OWNER(S): SimonCRE JC Saguaro III, LLC
5/10/2023
___________________
Joshua Simon
_________________________________
(Print Name)
___________
(Signature)
_______
Manager
_________________________________
(Title)
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N_/
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A___________________________
__
(Print Name)
_________________________________
(Signature)
_________________________________
(Title)
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Public Hearing
CFD No. 2019-1 Annexation No. 35:

CUP 22-03 (SimonCRE JC Saguaro III, LLC)
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Public Hearing on CFD 2019-1 Annexation No. 35
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 August 16, 2023.

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Public Hearing on CFD 2019-1 Annexation No. 35
Discussion:
• The Property Owner, SimonCRE JC Saguaro III, LLC, 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. 35 includes one (1) parcel, APN 0285-742-18. • On June 21, 2023, the City Council adopted Resolution No. 2023-085, a Resolution of Intention to annex these properties into CFD No. 2019-1 and hold a Public Hearing on August 2, 2023. The property owner consented to waiving certain time restriction and conduct the election the same night.
• The proposed maximum annual tax of $6,648 per acre for Special Tax A will be included in CFD No. 2019-1 as Tax Zone 36.
• 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. 35
Discussion (continued):
• The services, which may be funded with proceeds of the special tax include:
• All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way
• Public lighting including street lights and traffic signals, • Maintenance of streets, including pavement management, and street sweeping, • Maintenance and operation of water quality improvements including storm drainage and flood protection facilities
• In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds.

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Project Location
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Public Hearing on CFD 2019-1 Annexation No. 35
Fiscal Impact:
• It is anticipated that at build-out the total Special Tax A revenues to pay for maintenance costs will be approximately $2,958. 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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HIGHLAND AVE
VALA
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LYNWOOD WAY
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MARSHALL BLVD

PARK AVE

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CFD NO. 2019-1 (MAINTENANCE SERVICES)
ANNEXATION NO. 35

PROJECT MAP
^
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PUBLIC HEARING
City of San Bernardino
Request for Council Action
Date: August 2, 2023
To: Honorable Mayor and City Council Members
From: Charles E. McNeely, Interim City Manager;
Mary Lanier, Agency Director of Community, Housing, and Economic Development
Department: Community, Housing, & Economic Development (CED) Subject: Public Hearing on Annexation No. 36 to Community Facilities District 2019-1 (Ward 6)
Recommendation:

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

1. Hold a Public Hearing; and

2. Adopt Resolution No. 2023-125 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. 36); and

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

4. Adopt Resolution No. 2023-126 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. 36); and

5. Introduce, read by title only, and waive further reading of Ordinance No. MC1618 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 Packet Pg. 543
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-1618 for August 16, 2023.

Background
On June 21, 2023, the Mayor and City Council adopted Resolution No. 2023-086, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”. A public hearing was set for August 2, 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 June 27, 2023, at 1:12 p.m. in Book 91 Page 23, Document No. 2023-0157765 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 8.90 gross acres of an industrial 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 Starbucks. 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. Maintenance and operation of water quality improvements including storm drainage and flood protection facilities; and

4. City and County costs associated with the setting, levying and collection of the special tax, and in the administration of the District including the contract Packet Pg. 544
administration and for the collection of reserve funds.

The proposed area to be annexed into the CFD will be included in Tax Zone 37 and is located south of Palm Avenue and Hallmark Parkway intersection off of Historic Route 66, as shown in Attachment #12.

The maximum annual special tax for this development has been calculated to be $1,261 per acre for FY 2023/24. Special Tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. The property owners have agreed to initiate and conduct the CFD annexation proceedings pursuant to the 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 MelloRoos Act in 1982, for the annexation into the CFD and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election.

In order to annex property to CFD No. 2019-1 pursuant to the provisions of California Government Code Section 53311 et seq., the City must adopt a series of three statutorily required Resolutions and an Ordinance which are summarized below. • Resolution declaring City intent to annex territory to Community Facilities District No. 2019-1 including the boundary of the area to be annexed and the rate and method of apportionment of special taxes within the annexation area (the special tax applies only to properties within the annexation area), adopted June 21, 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 August 16, 2023.

Discussion
The Resolution of Intention called for a public hearing to be held on August 2, 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 Packet Pg. 545
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. 2023-125, it may immediately proceed to the opening of the ballots and adopt Resolution No. 2023-126 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 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 $11,217 from Special Tax A to be used to pay for maintenance costs within the development.

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

1. Hold a Public Hearing; and

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36); and

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

5. Introduce, read by title only, and waive further reading of Ordinance No. MC1618 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-1618 for August 16, 2023.

Attachments
Attachment 1 Resolution No. 2023-125- 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. 2023-126- Resolution Declaring Election Results
Attachment 6 Exhibit A Certificate of Election Results
Attachment 7 Ordinance No. MC-1618
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:

Sixth 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 Packet Pg. 547
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.

June 21, 2023 - Mayor and City Council adopted Resolution No. 2023-086, 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. 2023-125
Resolution No. 2023-125
July 21, 2023

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RESOLUTION NO. 2023-125

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.
36)
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 June 21, 2023, duly adopted Resolution No. 2023-086 (the “Resolution of Intention”) declaring its intention to annex certain territory to CFD No. 2019- 1 (Maintenance Services) and to levy a special tax within that territory to pay for certain services and setting a time and place for the public hearing on the proposed annexation for August 2, 2023; and
WHEREAS, the territory proposed to be annexed is identified in a map entitled "Annexation Map No. 36 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on June 27, 2023, in Book 91 of Maps of Assessment and Community Facilities Districts at Page 23, in the office of the San Bernardino County Recorder; and Packet Pg. 549
Resolution No. 2023-125
Resolution No. 2023-125
July 21, 2023

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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 August 2, 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 August 2, 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 Packet Pg. 550
Resolution No. 2023-125
Resolution No. 2023-125
July 21, 2023

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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.

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Resolution No. 2023-125
Resolution No. 2023-125
July 21, 2023

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

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Resolution No. 2023-125
Resolution No. 2023-125
July 21, 2023

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APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 2nd day of August 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. 2023-125
Resolution No. 2023-125
July 21, 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. 2023-125, adopted at a regular meeting held on the 2nd day of August 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 Services) (the “CFD No. 2019-1”) Annexation No. 36 is currently comprised of two (2) parcels, located within the City boundaries. The property is identified by the following San Bernardino County Assessor's Parcel Numbers (APNs).

APN Owner Name
0266-041-22 DP Industrial Parkway LLC
0266-041-40 DP Industrial Parkway LLC
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EXHIBIT B

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES)

City of San Bernardino 1
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 556 “Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction building permit issued for construction of a building of Non-Residential Property and any Building Square Footage subsequently added to a building of such Taxable Property after issuance of a building permit for expansion or renovation of such building. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD” or “CFD No. 2019-1” means the City of San Bernardino Community Facilities District No. 2019- 1 (Maintenance Services).
“City” means the City of San Bernardino.
“Contingent Special Tax B Requirement” means that amount required in any Fiscal Year, if the POA is unable to maintain the Service(s) to: (i) pay the costs of Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Services as determined by the Administrator; less a credit for funds available to reduce the annual Special Tax B (Contingent) levy as determined by the Administrator. “County” means the County of San Bernardino.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 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 1st of any year to and including the following June 30th.
“Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.
“Maximum Special Tax A” means the Maximum Special Tax A, as determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property within CFD No. 2019-1.

City of San Bernardino 2
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 557 “Maximum Special Tax B (Contingent)” means the Maximum Special Tax B (Contingent), as determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property within CFD No. 2019-1.
“Multi-Family Residential Property” means any Assessor’s Parcel of residential property that consists of a building or buildings comprised of attached Residential Units sharing at least one common wall with another unit.
“Non-Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a building permit(s) was issued for a non-residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. “Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain landscaping within a Tax Zone. “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property with the same Tax Zone, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property with the same Tax Zone, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property with the same Tax Zone. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. “Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Service(s)” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2019-1 as set forth in the documents adopted by the City Council at the time the CFD was formed. “Single Family Residential Property” means any residential property other than Multi-Family Residential Property on an Assessor’s Parcel.
“Special Tax(es)” means the Special Tax A and/or Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
“Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement. "Special Tax A Requirement" means for each Tax Zone, that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs for such Tax Zone of CFD No. 2019-1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax A Requirement include funds for Bonds.

City of San Bernardino 3
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 558 “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.

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 City of San Bernardino 4
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 559 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.

TABLE 1

MAXIMUM SPECIAL TAX A RATES

City of San Bernardino 5
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 560 TABLE 2

MAXIMUM SPECIAL TAX A RATES

TABLE 3

MAXIMUM SPECIAL TAX A RATES

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)
City of San Bernardino 6
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 561 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

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
1 Taxable
Unit
RU
Maximum Special
Tax B (Contingent)
$0
Tract
TR 17170
Land Use Category
Single Family Residential Property
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 City of San Bernardino 7
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 562 Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. c. Undeveloped Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 6 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.

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

TABLE 6

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX

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 City of San Bernardino 8
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 563 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:

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.

City of San Bernardino 9
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 564 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.

City of San Bernardino 10
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 565

APPENDIX A

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

TAX ZONE 37
LM 2022-007
Item
1 Description
Lighting
Estimated Cost
$1,841
2 3
4 Streets $6,598
$335
$1,316
$1,127
$11,217
Drainage
Reserves
5 Admin
Total
Special Tax B Contingent Services – There are no services being funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2019-1. However, additional Tax Zones may have Special Tax B Contingent Services being provided.

TAX ZONE 37
FY 2023-24 MAXIMUM SPECIAL TAX RATES

DEVELOPED PROPERTY AND APPROVED PROPERTY
Land Use
Category
Non-Residential Property
Taxable
Unit
Acre
Maximum
Special Tax A
$1,261
Maximum
Special Tax B
$0
TAX ZONE 37
FY 2023-24 MAXIMUM SPECIAL TAX RATES

UNDEVELOPED PROPERTY
Taxable
Unit
Acre
Maximum
Special Tax A
$1,261
Maximum
Special Tax B
$0
City of San Bernardino
Community Facilities District No. 2019-1 (Maintenance Services) 11 Packet Pg. 566

TAX ZONE SUMMARY
Tax
Zone
1 2
3 4
5 6
7 Tract
APN
17170
Fiscal
Year
Maximum
Special Tax A
$961 / RU
Maximum
Annexation Special Tax B
Original
1 Subdivider
Santiago Communities, Inc.

JEC Enterprises, Inc.

SBABP IV, LLC
1300 E Highland Ave LLC
Vone SB, LLC
PI Properties, LLC
Pacific West Company, et al.
$7,433 / Acre $0 / Acre
$588 / RU $0 / RU
$5,284 / Acre
$6,397 / Acre
$807 / Acre
$847 / Acre
$1,385 / Acre
$174 / RU
$0 / Acre
$0 / Acre
$0 / Acre
$320 / Acre
$978 / Acre
$17 / RU
$45 / RU
LM 22-04
LM 2021-013
TR 4592
LLA 2020-005
TR 20494
TR 20495 $204 / RU
To Be Determined
$1,851 / Acre
$347 / RU
$922 / Acre
$2,957 / Acre
$358 / Acre
28 29
30 31
32 PM 20320
TR 17329
LL 2022-11
PM 20143
PM 20334
PM 3613,
2022-23
2023-24
2022-23
2022-23
2023-24
$292 / Acre
$0 / RU
$372 / Acre
$1,855 / Acre
$94 / Acre
SB Drake Central Avenue LLC
Verdemont Ranch 20, LLC
CIVF VI – CA1W01, LLC
California Cajun Properties LLC
Elliott Precision Block Co.
32 33
34 33
34 35
2022-23
2023-24
2023-24
$1,094 / Acre
$2,785 / Acre
$533 / Acre
$186 / Acre
$158 / Acre
$193 / Acre
S.B. Universal Self Storage LLC 4230 & 4250
PM 20392 GWS#7 Development, LLC
MLG SB Land LLC &
Grandfather’s Land Holdings LLC CUP 21-16
35 36
36 37
CUP 22-03
LM 2022-007
2023-24
2023-24
$6,648 / Acre
$1,261 / Acre
$0 / Acre
$0 / Acre
SimonCRE JC Saguaro III, LLC
DP Industrial Parkway LLC
City of San Bernardino
Community Facilities District No. 2019-1 (Maintenance Services) 12 Packet Pg. 567

City of San Bernardino 13
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 568

APPENDIX B

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

City of San Bernardino 14
Community Facilities District No. 2019-1 (Maintenance Services) Packet Pg. 569

APPENDIX C

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

PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA BOUNDARIES City of San Bernardino
Community Facilities District No. 2019-1 (Maintenance Services) 15 Packet Pg. 570
Packet Pg. 571
Packet Pg. 572

EXHIBIT C

CITY OF SAN BERNARDINO

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 36
(August 2, 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
DP Industrial Parkway LLC 8.90 9
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.

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on August 2, 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 August 2, 2023.

Very truly yours,
Genoveva Rocha, CMC, City Clerk
Packet Pg. 573
TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

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

DP Industrial Parkway LLC
Attn: Brett Dedeaux
100 Wilshire Blvd., Suite 250
Santa Monica, CA 90401
0266-041-22 and 0266-041-40

CITY OF SAN BERNARDINO

Shall the City Council of the City of San Bernardino be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex territory to Community Facilities District No. 2019-1 (Maintenance Services) adopted by the City Council on June 21, 2023 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 36 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 _________

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__.

Brett Dedeaux
Authorized Signer
Signature
Print Name
Title
Packet Pg. 574
Resolution No. 2023-126
Resolution No. 2023-126
July 21, 2023

Page 1 of 3 ends

Mayor and City CouncilAugust 2, 2023

Mayor and City Council
August 2, 2023