Upland City Council
May 23, 2022

Ordinance No.

any bona fide occupational qualifications. (Ord. 1812 § 1(B), 2006; prior code § 2350.8)”

Section 7. Amendment of Section 2.36.110. Section 2.36.110 of Chapter

2.36 of Title 2 of the Upland Municipal Code is hereby amended to read in its entirety as follows:

“2.36.110 Probationary period.

A. All original and promotional appointments shall be subject to a minimum probationary period of 12 months for all management, professional, technical, miscellaneous, and sworn police personnel above the rank of police officer and all original appointments for police officer shall be subject to a minimum probationary period of 15 months during which the employee may be rejected at any time without right of appeal or hearing in any manner. Employees rejected during a promotional probationary period shall be reinstated to the classification from which they were promoted, provided the employee previously held permanent status in the classification, unless charges are filed and they are discharged as provided in this chapter and the rules.

B. Employees in the competitive service who are promoted or transferred to a position not included in the competitive service shall be reinstated to their former classification if within 12 months action is taken to dismiss them, unless charges are filed and they are discharged in the manner provided in this chapter and the rules established hereunder for positions in their competitive service. (Prior code § 2350.11)”

Section 8. Amendment of Section 3.40.040. Section 3.40.040 of Chapter

3.40 of Title 3 of the Upland Municipal Code is hereby amended to read in its entirety as follows:

“3.40.040 Schedule of fees and service charges.

The city manager, finance director and each city department head, under the direction of the city manager, shall review the city’s master fee schedule on an annual basis, and will recommend to the city council the fee or charge schedule necessary so as to recover the costs reasonably borne to provide regulations, products or services.

The schedule of frequency of rate adjustments may be varied by the city council to adjust revenues sufficient to meet debt service coverage requirements of any bond, certificate, or ordinance, resolution, indenture, contract, or action under which securities have been issued by the city which contain any coverage factor requirement. Fees for newly established regulations, products or services shall be set to recover all costs reasonably borne. (Prior code § 2960.4)”

Ordinance No.

Section 9. Amendment of Section 3.40.060. Section 3.40.060 of Chapter

3.40 of Title 3 of the Upland Municipal Code is hereby amended to read in its entirety as follows:

“3.40.060 Economic analysis process structure.

City staff shall be responsible to perform the analysis and present recommendations to the city council as provided for in Section 3.40.050. (Ord. 1812 § 1(B), 2006; prior code § 2960.6)”

Section 10. Amendment of Section 3.40.070. Section 3.40.070 of Chapter

3.40 of Title 3 of the Upland Municipal Code is hereby amended to read in its entirety as follows:

“3.40.070 Procedure.

Upon the city manager’s recommendation of the necessary fees and charges made pursuant to Section 3.40.040, the city manager shall forward a report to the city council. Upon receiving the report, the city council shall set a public hearing to hear oral and written presentations concerning fees and charges proposed. (Ord. 1812 § 1(B), 2006; prior code § 2960.7)”

Section 11. Amendment of Section 3.48.010. Section 3.48.010 of Chapter

3.48 of Title 3 of the Upland Municipal Code is hereby amended to read in its entirety as follows:

“3.48.010 Payment of fees, charges and other requirements against a development project.

The City of Upland shall comply with California Education Code section 17620 as it relates to any applicable development impact fees from the Upland Unified School District. (Prior code § 8111.010)”

Section 12. Repeal Section 3.48.020 of Chapter 3.48 of Title 3 of the Upland Municipal Code.

Section 3.48.020 of Chapter 3.48 of Title 3 of the Upland Municipal Code is hereby repealed in its entirety.

Section 13. Repeal Section 3.48.030 of Chapter 3.48 of Title 3 of the Upland Municipal Code.

Section 3.48.030 of Chapter 3.48 of Title 3 of the Upland Municipal Code is hereby repealed in its entirety.

Section 14. Repeal Section 3.48.040 of Chapter 3.48 of Title 3 of the Upland Municipal Code.

Ordinance No.

Section 3.48.040 of Chapter 3.48 of Title 3 of the Upland Municipal Code is hereby repealed in its entirety.

Section 15. Amendment of Section 9.04.090. Section 9.04.090 of Chapter

9.04 of Title 9 of the Upland Municipal Code is hereby amended to read in its entirety as follows:

“Section 9.04.090 Closing hours for Upland municipal parks.

All municipal parks in the city will be closed beginning at sunset until sunrise the following morning. Any person that remains in a municipal park during closing hours shall be guilty of a misdemeanor. This section shall not apply to attendance at city-authorized community activities in the park. (Ord. 1934 § 3, 2019; Ord. 1920 § 1, 2017; prior code § 4210.28)”

Section 16. Addition of Section 10.08.150(e). Section 10.08.150(e) of Chapter 10.08 of Title 10 of the Upland Municipal Code is hereby added to read as follows:

“(e) A “commercial vehicle” means any vehicle which is not meant for ordinary passenger use common to residential use. A “commercial trailer” includes any trailer used or maintained for compensation, or profit or designed, used, or maintained primarily for the transportation of property. Passenger buses shall be considered commercial vehicles regardless of weight. “Commercial equipment” means any equipment not ordinary to residential use.”

Section 17. Amendment of Section 10.36.050. Section 10.36.050 of Chapter

10.36 of Title 10 of the Upland Municipal Code is hereby amended to read in its entirety as follows:

“10.36.050 Use of streets for storage of vehicles prohibited.

A. No person shall park, leave standing, or store upon any publicly maintained highway, street, alley or other place open for vehicular travel, any vehicle, as defined in Vehicle Code § 670, for more than 72 consecutive hours.

A vehicle shall be considered to be parked, left standing, or stored in violation of this section if it has not been moved more than two-tenths of a mile (1,056 feet) within 72 consecutive hours. A vehicle may be found to be in violation of this section whether occupied or not.

B. In the event a vehicle is found to be in violation of subsection A of this section, the vehicle may be removed as provided in Vehicle Code § 22651, or any successor provision thereto.”

Ordinance No.

Section 18. Amendment of Section 10.40.040. Section 10.40.040 of Chapter

10.40 of Title 10 of the Upland Municipal Code is hereby amended to read in its entirety as follows:

“10.40.040 Parking prohibited or limited.

Whenever authorized signs are in place giving notice thereof, it shall be unlawful for any person to stop or stand or park any vehicle for a period in excess of the parking time limit indicated by such sign.”

Section 19. Compliance with California Environmental Quality Act. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

Further, if the activity is deemed a project this City Council finds that this Ordinance is exempt pursuant to Section 15061(b)(3) of the State CEQA Guidelines.

Section 20. Severability. If any section, subsection, subdivision, sentence, or clause or phrase in this Ordinance or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases are declared unconstitutional, invalid, or ineffective.

Section 21. Effective Date. This Ordinance shall become effective thirty (30) days from its adoption.

Section 22. Publication. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published in a newspaper of general circulation printed and published within the City of Upland, pursuant to all legal requirements.

PASSED, APPROVED, AND ADOPTED this ____ day of _________, 2022.

Bill Velto, Mayor

Ordinance No.

I, Keri Johnson, City Clerk of the City of Upland, California, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Upland held on the ____ day of __________, 2022, and was adopted at a regular meeting of the City Council of the City of Upland on the ____ day of __________, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Keri Johnson, City Clerk

1.08.030 Use of City Seal, City Logos, City Flag
It shall be unlawful for any person to make or use the City seal, City logos (any logos, past or present, including department specific logos), or City flag of the City of Upland deceptively, fraudulently, or without express consent from the City Manager of Upland. Unauthorized use of the City seal, City logos, or City flag is declared a public nuisance and the City can abate or enjoin such use.

2.04.100 Power of appointment and removal.

It shall be the duty of the city manager to, and he or she shall, appoint, remove, promote, demote and discipline any and all officers and employees of the city, except the city clerk, city treasurer and city attorney, unless otherwise prescribed by this code. (Prior code § 2310.100)

2.36.030 Personnel directorHuman Resources/Risk Manager.

The city manager shall appoint a personnel director Human Resources/Risk Manager whose duty it shall be to act in the capacity of administrator of the personnel system. The personnel director Human Resources/Risk Manager shall:

A. Attend all meetings of the board of review;
B. Administer all provisions of this chapter and the rules established hereunder, not specifically reserved to the council, city manager or board of review; C. Under the direction of the city manager, prepare rules and revisions and amendments thereof, for the consideration of the council. (Prior code § 2350.3)

2.36.070 Authority of the city manager and/or designee(s) within the merit system.

The city manager and/or designee(s) having the authority to make transfers, promotions, demotions, reinstatements, lay-offs, salary reductions, salary adjustments and to appoint, suspend or discharge employees, and to formulate rules shall retain such power, subject to the provisions of this chapter and the rules established hereunder, it being the intent and spirit of this chapter to provide a fair and just approach to municipal employment in order that city employees may be selected and promoted on a merit basis, but in no sense to impair the efficiency of the public service. (Prior code § 2350.7)

2.36.080 Equal employment opportunity.

In compliance with the California Fair Employment and Housing Act and other state and federal fair employment practice provisions, the city prohibits discrimination based on race, religious creed, color, national origin, ancestry, disability (mental and physical)physical handicap, marital status, sex, gender, sexual orientation, gender identity, gender expression, medical condition, genetic information, military or veteran status and/or age. Any person possessing all the minimum qualifications for a position shall be eligible to participate in any examination hereunder. These provisions, however, shall always be subject to any bona fide occupational qualifications. (Ord. 1812 § 1(B), 2006; prior code § 2350.8)

2.36.110 Probationary period.

A. All original and promotional appointments shall be subject to a minimum probationary period of 12 months for all management, professional, technical,, miscellaneous, fire personnel and sworn police personnel above the rank of police officer and all original appointments for police officer shall be subject

to a minimum probationary period of 15 months during which the employee may be rejected at any time without right of appeal or hearing in any manner. Employees rejected during a promotional probationary period shall be reinstated to the classification from which they were promoted, provided the employee previously held permanent status in the classification, unless charges are filed and they are discharged as provided in this chapter and the rules.

B. Employees in the competitive service who are promoted or transferred to a position not included in the competitive service shall be reinstated to their former classification if within 12 months action is taken to dismiss them, unless charges are filed and they are discharged in the manner provided in this chapter and the rules established hereunder for positions in their competitive service. (Prior code § 2350.11)

3.40.040 Schedule of fees and service charges.

The city manager, finance director and each city department head, under the direction of the city manager, shall review the city’s master fee schedule fees and service charges listed in this section on an annual basis, and will recommend to the city council the fee or charge schedule necessary so as to recover the costs reasonably borne to provide the following listed regulations, products or services.:

Regulation, Products or Service Development Services.

1. Construction permit fees;

2. Building plan check fees;

3. Special inspection fees;

4. Post fire building inspection fees;

5. General plan amendment fees;

6. Zone change fees;

7. Conditional use permit fees;

8. Development agreement fees;

9. Variance fees.;

10. Tentative tract map fees;

11. Tentative parcel map fees;

12. Reversion to acreage fees;

13. Site plan review fees;

14. Development extension review fees;

15. Lot line adjustment review fees;

16. Architectural design review fees;

17. Landscape/lighting plan review fees;

18. Sign plan review fees;

19. Sign criteria review fees;

20. Environmental assessment review fees;

21. Environmental impact report charges;

22. Minor variance review fees;

23. Temporary sign review fees;

24. Special event/temporary sign review fees;

25. Similarity of use review fees;

26. Change of occupancy review fees;

27. Individual retail sale determination fees;

28. Zone classification of use review fees;

29. Underground utilities waiver permit fees;

30. House moving review fees;

31. Public hearing appeal fees;

32. Nonpublic hearing appeal fees;

33. Annexation request review fees;

34. Encroachment permit fees;

35. Precise plan of street modification fees;

36. Specific plan and modification fees;

37. Street vacation fees;

38. Zoning code amendment fees;

39. Zoning letter fees;

40. Model home bonding agreement fees;

41. Sales trailer bonding agreement fees;

42. Occupancy permit fees;

43. Engineering map and plan check fees;

44. Sewer permit fees;

45. Public works construction permit fees;

46. Water construction permit fees;

47. Sewer line television inspection charges;

48. Business license application review fees.

Public Safety Services.

49. Bicycle license fees;

50. Animal license fees and fines;

51. Animal impound fees;

52. Vehicle code fines;

53. Police false alarm charges;

54. Overload permit fees;

55. Gun permit fees;

56. Clearance letter charges;

57. Fingerprint fees;

58. Regulatory license fees;

59. Parking fines;

60. Police accident report charges;

61. Vehicle inspection fees;

62. Police photograph sales charges;

63. Special police service charges;

64. State-mandated fire inspection fees;

65. Fire hazard inspection fees;

66. Fire company inspection fees;

67. Fire report fees;

68. Fire false alarm fees;

69. Fire alarm malfunction response charges;

70. Hydrant and fire lanes permit fees;

71. Sprinkler system plan review fees;

72. Alarm system plan review fees;

73. Fire life safety fees;

74. Hood and duct system plan review fees;

75. Flow test fees;

76. Fumigation permit fees;

77. Tank removal/install permit fees;

78. Fire code enforcement fees;

79. Weed abatement assessments;

80. Auto abatement charges.

Recreation and Social Services.

81. Trip and excursion fees;

82. Special event fees;

83. City youth sports fees;

84. City adult sports fees;

85. Private youth ball field rental fees;

86. Private adult ball field rental fees;

87. Sports field lighting charges;

88. Recreational swimming fees;

89. Swimming lesson fees;

90. Recreation user fees;

91. Park facility charges—Residents;

92. Tiny tot program fees—City;

93. Senior citizen program charges;

94. Community center room rental charges;

95. Magnolia recreation center rental charges;

96. Library fines and collections.

Utility and Enterprise Services.

97. Water sales;

98. Meter installation charges,;

99. Water turn on/off service charges;

100. Solid waste collection charges;

101. Sewer collection charges;

102. Individual waste discharge permit fees.

Maintenance Services.

103. Business district assessments;

104. Emergency services to contractor charges.

Administrative Services.

105. Returned check charges;

106. Records research fees;

107. Sales of copies, maps and publications;

108. Agenda/minute mailing charges;

109. Address change processing fees;

110. Redevelopment agency administration charge;

111. Notary fees.

Impact Fees.

112. Sanitary sewer expansion;

113. Park acquisition and development fees;

114. Storm drain development permits;

115. Street and traffic facility developers permit fees;

116. Contributions for water acquisition and development.

The schedule of frequency of rate adjustments may be varied by the city council to adjust revenues sufficient to meet debt service coverage requirements of any bond, certificate, or ordinance, resolution, indenture, contract, or action under which securities have been issued by the city which contain any coverage factor requirement. Fees for newly established regulations, products or services shall be set to recover all costs reasonably borne. (Prior code § 2960.4)

3.40.060 Economic analysis process structure.

The subcommitteeCity staff shall be responsible to perform the analysis and present recommendations to the city council as provided for in Section 3.40.050. (Ord. 1812 § 1(B), 2006; prior code § 2960.6)

3.40.070 Procedure.

Upon the city manager’s recommendation of the necessary fees and charges made pursuant to Section

3.40.040, the city manager shall forward a report to the city council including the report of the subcommittee on those recommendations. Upon receiving the report, the city council shall set a public hearing to hear oral and written presentations concerning fees and charges proposed. (Ord. 1812 § 1(B), 2006; prior code § 2960.7)

Chapter 3.48 SCHOOL CONSTRUCTION FEES

3.48.010 Payment of fees, charges and other requirements against a development project.

Effective January 5, 1987, a fee equal to the fee then levied by the governing board of the Upland School District and the Upland Unified School District shall be paid to the city for the benefit and use of the school district upon the issuance of a building permit for any development as defined by Government Code Section 65928. No building permit shall be issued for any development as defined in Government Code Section 65928 for any development absent a certification by the appropriate school district of compliance by that development project with any fee, charge, dedication or other form of requirement levied by the governing board of that school district for new construction or construction or reconstruction of school facilities lying within that district. The City of Upland shall comply with California Education Code section 17620 as it relates to any applicable development impact fees from the Upland Unified School District. (Prior code § 8111.010)

3.48.020 Fees levied.

The fees now levied by the school district which are to be paid as set forth above are as follows:

A. One dollar and fifty cents per square foot, of covered or enclosed area as to new development and other residential construction to the extent that such construction results in an increase of habitable area;

B. Twenty-five cents per square foot on all new commercial or industrial construction;

C. In case of the sale of a manufactured home or mobilehome, the payment of fees shall be as set forth above according to the square footage involved prior to the issuance of any occupancy permit pursuant to the sale or lease of the manufactured home or mobilehome pursuant to Section 18080.5 of the Health and Safety Code.

D. The fees set forth in this chapter shall be increased annually in an amount specified by the State Allocation Board. The fee adjustment shall be effective on the date in January when the State Allocation Board holds its meetings, or at such other time as specified by the State Allocation Board (Prior code § 8111.012)

3.48.030 Modification of fees.

The fees set forth in this chapter to be paid and collected by the city shall be subject to modification from time to time by resolution of the city council conforming to the resolution or ordinance enacted by the governing board of the appropriate school district to the end that the city may collect the fees levied by such governing school board. (Prior code § 8111.015)

3.48.040 Payment of fees to the appropriate school district.

The fees so collected by the city of Upland shall be forwarded to the appropriate school district for which the collection is made for use by that district in pursuance to the law made and provided. (Prior code § 8111.017)

9.04.090 Closing hours for Upland municipal parks.

All municipal parks in the city will be closed beginning at sunset until sunrise the following morning. Any person that remains in a municipal park during closing hours shall be guilty of a misdemeanor. one-half hour before sunset until one-half hour after sunrise the following morning. Sunrise and sunset shall be determined by use of the National Oceanic and Atmospheric Administration web page. Any person that remains in a municipal park during closing hours shall be guilty of a misdemeanor; provided, however, that sidewalk vendors operating with a valid permit pursuant to Chapter 5.76 shall only be subject to the citation provisions set forth in Section 5.76.100. Persons other than sidewalk vendors operating with a valid permit pursuant to Chapter 5.76 charged with a violation of this section shall be cited in the manner prescribed for citation for misdemeanors as set forth in the California State Penal Code. This section shall not apply to attendance at city-authorized community activities in the park. (Ord. 1934 § 3, 2019; Ord. 1920 § 1, 2017; prior code § 4210.28)

10.08.150 Prohibiting the parking of commercial vehicles and equipment.

(e) A “commercial vehicle” means any vehicle which is not meant for ordinary passenger use common to residential use. A “commercial trailer” includes any trailer used or maintained for compensation, or profit or designed, used, or maintained primarily for the transportation of property.

Passenger buses shall be considered commercial vehicles regardless of weight. Commercial equipment means any equipment not ordinary to residential use.

10.36.050 Use of streets for storage of vehicles prohibited.

No person who owns or has possession, custody or control of any vehicle shall park such vehicle upon any street or alley at any one location for more than a consecutive period of 72 hours. (Prior code § 3308.04) A. No person shall park, leave standing, or store upon any publicly maintained highway, street, alley or other place open for vehicular travel, any vehicle, as defined in Vehicle Code § 670, for more than 72

consecutive hours. A vehicle shall be considered to be parked, left standing, or stored in violation of this section if it has not been moved more than two-tenths of a mile (1,056 feet) within 72 consecutive hours.

A vehicle may be found to be in violation of this section whether occupied or not.

B. In the event a vehicle is found to be in violation of subsection A of this section, the vehicle may be removed as provided in Vehicle Code § 22651, or any successor provision thereto.

10.40.040 Parking Prohibited or Limited

Whenever authorized signs are in place giving notice thereof, it shall be unlawful for any person to stop or stand or park any vehicle for a period in excess of the parking time limit indicated by such sign.

S T A F F R E P O R T
I T E M N O . 13.B .

D A T E :M ay 2 3, 2 02 2
T O :M A YO R A N D C I T Y C O U N C I L
F R O M : M I C H A E L B L A Y, C I T Y M A N A G E R P R E P A R E D B Y : M A R C E LO B L A N C O, A C T I N G P O L I C E C H I E F

D O N D O DT, P O L I C E L I E U T E N A N T
S U B J E C T :C O N S I D E R A T I O N O F A N O R D I N A N C E A M E N D I N G T H E U P L A N D

M U N I C I PA L C O D E R E G A R D I N G S I D E W A L K V E N D I N G

R E C O M M E N D E D A C T I O N
I t i s recom m en d ed t hat th e C ity C ou ncil h old first read in g b y title on ly, w aive furth er read in g , and int rod uce an O rd i n an ce ad d in g U p land M un icip al C od e S ect ion 5 .76 .11 0 reg u l ati n g s ale of food , g ood s, an d m erchan d ise c reat in g a health an d safety d ang er t o h elp p rotect t h e C ity's com m u nity.

G O A L S T A T E M E N T
Th e p rop osed act ion su p p ort s the C ity's overarch in g g oal of p rot ect in g h ealt h , safet y an d w elfare b y estab lish in g reg ulations for S id ew alk Vend ors to the g reatest exten t p erm issib le un d er S tate law.

B A C K G R O U N D
O n S ep t em b er 1 7 , 20 18 , S en ate B ill 94 6 (S B 94 6) w as sig ned b y G overn or B rown an d ch ap tered in G overn m en t C od e S ection s 51 03 6-5 10 39 . T hese section s b ecam e effective on J an uary 1, 2 01 9 an d req u ire cities to allow sid ewalk vend in g .

O n N ovem b er 11 , 20 19 the C it y C ou n c il ad op ted ord inan ce 1 93 4 ad d i n g a n ew C h ap t er 5.7 6 to the U p land M u nicip al C od e to create a sid ewalk vend in g p rog ram .

M an y s id ew alk ven d ors in th e c it y con tinu e t o op erate with out ob tai ni ng th e req u ired coun ty health p erm its and serve food an d other item s th at are p otentially d ang erou s to p u b lic health .

I S S U E S /A N A L Y S I S
Th e p rop os ed ord in ance ad d in g U p lan d M u nicip al C od e S ect ion 5.7 6.1 10 wou ld all ow t he city to m ore effec ti vely reg u lat e th e sale of food , g ood s, an d m erch and ise creating a h eal th an d safety d an g er, and th ereb y, b etter help p rotect th e C ity's com m un ity.

M u nicip al C od e S ection 5 .76 .11 0 (H ealth and S afety) w ould read :

5.76.110 H ealth and S afety
A . T he C i ty m ay t em p oraril y d etain food , g ood s, and m erch and ise t hat are d isp layed , offered , or m ad e avai lab le for ren t or sale b y an y p ers on creat in g a h ealth an d safety d ang er.

B. N o p erson sh all ret rieve d et ain ed m aterial s wi th ou t d em on s trati n g p rop er p roof of ow nersh ip an d sig n in g an ag reem en t t o com p ly w ith al l ap p li cab le laws wh en en g ag in g in sid ew alk ven d ing activities.

C . T he C it y m ay d is p os e of food and food p rod u ct s th at are d isp layed , offered , or m ad e availab le for sale b y an y p erson op erat in g w it h ou t all req uired ap p rovals from the S an B ern ard in o C ou nty d ep artm en t of p ub lic h ealth.

F I S C A L I M P A C T S
Th e fi sc al i m p act is li m i ted to t h e p u b li cat ion of th e O rd in ance su m m aries an d cod ification of th e O rd in ance in to t he U p land M u ni ci p al C od e. Th ese c ost s h ave b een in cl u d ed i n t h e C ity C lerk b ud g et and no ad d itional ap p rop riation is n ecessary.

A L T E R N A T I V E S
P rovid e altern ative d irection to staff.

AT TAC HM E NT S :

Description
Proposed Ordinance

ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

UPLAND, ADDING UPLAND MUNICIPAL CODE SECTION

5.76.110 REGULATING SALE OF FOOD, GOODS, AND

MERCHANDISE CREATING A HEALTH AND SAFETY DANGER
TO HELP PROTECT THE CITY’S COMMUNITY

WHEREAS, California Constitution, article XI, section 7, authorizes the City of Upland (“City”) to adopt and enforce local police, sanitary, and other ordinances and regulations that are not in conflict with the general laws; and

WHEREAS, Senate Bill number 946, including Government Code section 51038, authorizes the City to regulate sidewalk vending to help protect public health and safety; and

WHEREAS, The City has previously adopted Upland Municipal Code (“UMC”) chapter 5.76 to regulate sidewalk vending within the City; and

WHEREAS, the City now desires to add UMC section 5.76.110 to more effectively regulate sale of food, goods, and merchandise creating a health and safety danger, and thereby, better help protect the City’s community.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF UPLAND DOES ORDAIN AS FOLLOWS:

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

Section 2. UMC section 5.76.110 (Health and Safety) is hereby added, and is to read in its entirety as follows:

5.76.110 Health and Safety
A. The City may temporarily detain food, goods, and merchandise that are displayed, offered, or made available for rent or sale by any person creating a health and safety danger.

B. No person shall retrieve detained materials without
demonstrating proper proof of ownership and signing an agreement to comply with all applicable laws when engaging in sidewalk vending activities.

C. The City may dispose of food and food products that are displayed, offered, or made available for sale by any person operating without all required approvals from the San Bernardino County department of public health.

D. These remedies are cumulative, and in addition to any other remedies available to the City by law or equity. including, but not limited to, those provided in Chapter 1.20 of this Code.

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

Further, if the activity is deemed a project, the City Council finds that this Ordinance is exempt pursuant to CEQA Guidelines section 15061(b)(3).

Section 4. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof.

Section 5. Effective Date. This Ordinance shall become effective 30 days from its adoption.

Section 6. Publication. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published in a newspaper of general circulation printed and published within the City, pursuant to all legal requirements.

PASSED, APPROVED, and ADOPTED this __th day of _________ , 2022.

Bill Velto, Mayor

Ordinance No.

I, Keri Johnson, City Clerk of the City of Upland, California, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Upland held on the __th day of ___________ , 2022, and was adopted at a regular meeting of the City Council of the City of Upland on the __th day of _________ , 2022, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Keri Johnson, City Clerk

S T A F F R E P O R T
I T E M N O . 13.C .

D A T E :M ay 2 3, 2 02 2
T O :M A YO R A N D C I T Y C O U N C I L
F R O M : M I C H A E L B L A Y, C I T Y M A N A G E R P R E P A R E D B Y : S T E P H E N P. D E I T S C H , C I T Y A TTO R N E Y S U B J E C T :D I S C U S S I O N O F O P T I O N S F O R P L A C I N G R E S T R I C T I O N S O N

C I T Y C O U N C I L'S A B I L I T Y TO M A K E C E RTA I N E M P LOY E E

D E C I S I O N S D U R I N G A L A M E -D U C K P E R I O D

R E C O M M E N D E D A C T I O N
I t is recom m en d ed t hat t he C ity C ou ncil d iscu ss an d p rovi d e d i recti on con cerning p lacin g p roced ural rest rict ion s on th e C ity C ou ncil’s ab il it y to m ake cert ain em p loyee d eci si on s d urin g a lam e-d u ck p eriod , m eaning th e p eriod of tim e following a m u nicip al election u ntil th e tim e of org anization an d seat in g of t h e n ew l y con stituted C ity C ou ncil, i f t h ere are n ew m em b ers elected to the C oun cil.

G O A L S T A T E M E N T
Th e p rop osed act ion su p p ort s t ran sp aren cy an d op en p ub lic d i sc u s si on b y th e C ity C oun cil of id eas p rop osed b y C ity C ou ncil M em b ers.

B A C K G R O U N D
Th is item was p laced on the ag end a for d iscu ssion at the req u est of C ou ncilm em b er E lliott an d M ayor Velto.

Th e C i ty C ou n ci l has th e au th ority t o m ake vari ous em p loyee and /or i n d ep en d en t con tractor d ecision s, inclu d ing , b u t n ot lim ited to, th e hiring and firin g of the C ity M an ag er, th e C ity Attorn ey, and th e ap p roval of collective b arg aining ag reem en ts (“E m p loym ent D ecisions”).

D urin g a lam e-d u ck p eri od , or an y other p eriod of t im e, the U p l and C ity C ou nc il b y law m ay not d ivest it sel f or future C it y C ou n ci ls from t he exerc is e of p ow ers p rovi d ed b y state con stitution al an d g eneral law. T his p rincip le h as b een estab lish ed , an d reaffirm ed , b y the

C alifornia S up rem e C ourt. S ee T hom p son v. B oard of Trustees of C it y of A l am ed a (19 04 ) 14 4 C al. 28 1; see also C ity an d C oun ty of S an F ran cisco v. C oop er (19 75 ) 13 C al.3d 89 8.

I S S U E S /A N A L Y S I S
B ased on con stitution al an d g eneral l aw, t he U p l an d C i ty C ou n ci l m ay n ot ad op t an ord inan ce p rohib iting itself, or fu tu re U p lan d C i ty C ou n c il s, from t akin g act ion s reg ard in g E m p loym en t D ecisions b ecau se t he C oun cil is p reem p ted b y law from d oi n g so. I n p arti cu lar, su ch an ord in ance w ou l d con trad i ct state law. A g eneral l aw cit y, like t h e C ity of U p lan d , has on ly th ose p owers exp ressly con ferred u p on it b y th e C ali forn ia C on st it u t ion an d C aliforn ia statu tes, and th ose incid ent al p ow ers to t he ob ject an d p u rp oses of th e C i ty’s p ow ers. S ee I rw in v. C ity of M an hattan B each (1 96 6) 6 5 C 2d 13 , 20 .

A s follows, t h e p ow er to p roh i b i t im p lies th e p ow er to g ran t. Th e Up lan d C ity C ou n c il ’s p ow er to con d u ct g overnm ent b u s in ess b y a vote, at a m in im u m , of t h e m ajori ty of th e C ity C oun cil sittin g in q uorum (e.g ., to h ire a C i ty M anag er) d erives from st ate law. S ee G ov. C od e § 36 81 0. T h e C i ty d i d not g ran t i ts elf th is p ow er; in st ead it d erives from st ate law. S in ce it d oes not have th e au t h orit y t o g ran t itself t h i s p ower, it c an n ot p rohib it en ti rel y t he exerci se of this p ower.

O p tion To I m p ose P roced u ral Restriction O n E xercise O f Power N otwith stand in g th e foreg oi ng , t h ere are op p ortun ities t o p lace p roc ed u ral rest ri ct ion s on the exercise of th e C it y C oun cil’s p ow er d erived from th e s tat e. For exam p l e, t h ere are no p rovision s in state law restrictin g a city cou nc il ’s au th ority to im p ose st ri ct er votin g req uirem ents up on it sel f or future coun cils. G overnm ent C od e S ec ti on 3 68 13 stat es th at a city cou ncil “m ay estab lish rul es for th e con d u ct of it s p roceed in g s .” T h i s st atu te can b e in terp reted t o g rant th e U p l an d C i ty C oun cil th e aut horit y to im p os e heig h ten ed votin g req uirem ents to take action , eith er b y a sup erm ajority vote (e.g ., 2 /3 or 4/5 ) or a un anim ou s vote.

H ow ever, t h e C ity C ou ncil sh ou l d b e ad vised th at th e sam e C it y C oun cilm em b ers, or a fu tu re C ity C ou ncil, could ch oose to rely on the sam e state statutory authority to rep eal a heig h ten ed voting req u irem en t. I n such a case, th e C it y C ou nc il at th at t im e w ould on l y n eed a sim p le m ajority vot e of q u oru m p resen t at t h e m eeting t o reverse an y p roc ed u ral restrictions im p osed p reviou sly.

F I S C A L I M P A C T S
Th ere is n o fiscal im p act associated with th is item .

A L T E R N A T I V E S
P rovid e altern ative d irection to staff.

AT TAC HM E NT S :

Description
No Attachments Available

S T A F F R E P O R T
I T E M N O . 13.D .

D A T E :M ay 2 3, 2 02 2
T O :M A YO R A N D C I T Y C O U N C I L
F R O M : M I C H A E L B L A Y, C I T Y M A N A G E R P R E P A R E D B Y : S T E P H E N PA R K E R , C PA , A S S I S TA N T C I T Y M A N A G E R

R O B E R T D A L Q U E S T, D E V E LO P M E N T S E R V I C E S M A N A G E R

D O U G A N D E R S O N , C O N S U LTA N T
S U B J E C T :D E C L A R A T I O N O F I N T E N T I O N TO E S TA B L I S H P R O P O S E D C O M M U N I T Y F A C I L I T I E S D I S T R I C T N O. 2 02 2-1 (E N C L A V E A T

U P L A N D ) A N D D E C L A R A T I O N O F N E C E S S I T Y TO I N C U R B O N D

I N D E B T E D N E S S

R E C O M M E N D E D A C T I O N
I t is recom m end ed that th e C ity C oun cil take th e follow in g actions:

1. A d op t a Resol u t ion d eclaring in ten ti on to es tab li sh p rop osed C om m u n i ty Facilities D istrict N o. 2 02 2-1 (E nclave at Up lan d ) of the C ity of Up lan d ; an d

2. A d op t a Resol u t ion d eclarin g n ec ess it y to in cu r a b on d ed in d eb ted ness of p rop osed C om m u nity Facilities D istrict N o. 2 02 2-1 (E nclave at Up lan d ) of the C ity of Up lan d .

G O A L S T A T E M E N T
Th e p rop osed action sup p orts th e C ity’s g oal of p rovid in g soun d fiscal steward ship an d p rovid in g d ec en t h ou si n g , a su it ab l e li vin g en vironm ent , and exp an d ed econ om ic op p ortun ities for citizens.

B A C K G R O U N D
O n O c tob er 8, 20 18 th e C it y C oun cil ad op t ed th e “A m end ed an d Rest ated G oals & Policies for M ello-Roos C om m u n i ty Facilities D istrict F in an c in g s .” T he p etition for a b on d fin ancin g as su b m itted b y th e O wn er for th e p rop osed C F D 20 22 -1 fu ll y m eets t he g u id elines as ad op ted b y the C ity C ou ncil.

I S S U E S /A N A L Y S I S
Th e C ity of Up lan d h as recei ved a p et it ion from L E N N A R H O M E S O F C A L I F O R N I A , L LC , (“O w ner”) th e ow ner of certain real p rop erty l ocat ed on ap p roxim ately 15 .56 acres wi th in the C ity of Up lan d req u est in g th at t he C ity C oun ci l in itiate p roceed in g s for th e form ation of a com m u nity faci li ti es d i st ri ct to b e kn ow n as “C om m un it y Fac il it ies D istrict N o. 20 22 -1 (E nclave at U p land ) of t he C i ty of U p land , C ou n ty of S an B ernard i no, S t ate of C aliforn ia”, (“C F D N o. 20 22 -1”) (th e “D is tric t”). Th e D is tric t is b ei ng form ed to finan ce p u b li c facilities for a p l ann ed d evelop m en t b y t h e O wn er of ap p roxim ately 1 92 con d om in iu m u nits, in clud in g b u t n ot l im it ed to fac il it ies own ed an d op erated b y t h e C ity i n lieu of certain C it y d evelop m en t im p act fees , wh ich in clud e b u t are not li m i ted t o p ark, t raffi c, w ater, sew er, s torm d rain an d oth er c ap i tal im p rovem ents, p oli ce and fire faci li ti es, and to fun d t h e in cid en tal exp en ses in reg ard s to form ation an d ad m inistration of th e D istrict.

B y form ing th e D istrict, th e C i ty w ill consid er fi n an ci n g th e facilit ies and in ci d en tal exp enses th rou g h th e sale of b on d ed in d eb ted ness in an ap p roxim ate am ou nt of $6 ,50 0,0 00 .

Up on form at ion of t he D istrict, i t w ill b e the i nt ent ion of t he C ity t o levy a sp ecial tax w ithin th e D istrict. T he Rate and M ethod of A p p ortionm ent and C ollection for th e sp ecial tax are d escrib ed i n d et ail i n an att ach m en t to th e Resolu tion. Th e Rat e an d M ethod of A p p ortionm ent w il l all ow each p rop ert y own er w ithin t h e D istrict to es ti m at e t he m axim u m am ou nt of tax that m ay b e levied ag ain st each p arcel.

A p u b l ic hearin g on t he estab lish m en t of th e p rop osed C om m u ni ty Faci li ti es D i st ri ct 20 22 -1 w ill b e held on J u ne 27 , 2 02 2. S h ou ld t h e C i ty C ou n c il d eterm i n e to form C F D 2 0 2 2 -1 , a sp ecial el ect ion will b e h el d to authorize th e i ss uan ce of th e b ond s and levy of t he sp ecial tax. I f a vot e is h el d , th e voti n g p roced u re at th e elec ti on w ill b e a land ow ner vote wi th each lan d own er, wh o is an own er of record at th e close of the p ub lic h earing .

F I S C A L I M P A C T S
A ll cost s of t h e C ity an d c ons ul tan ts in cu rred w ith resp ect to form at ion of C F D 2 02 2-1 w il l b e p aid b y th e d evelop er.

Th e p rop os ed C om m u n i ty Faci li ti es B on d s are n ot a d irect ob li g at ion of th e C ity of Up lan d .

N either th e faith an d c red it , n or t h e taxing p ow er of th e C i ty, C ou nt y, S tate, or any p olitical su b d ivision is p led g ed to th e rep aym en t of t h e b on d s . T he b on d s are li m i ted ob li g at ion s of th e D istrict p ayab le solely from sp ecial tax revenu es. A ll costs of issu ance of th e p rop osed B on d s w ould com e from b ond p roceed s.

A L T E R N A T I V E S
P rovid e altern ative d irection to staff.

AT TAC HM E NT S :

Description
Resolution Decaring Intention to E stablish C F D 2022-1 Resolution Declaring Necessity to Incur a Bonded Indebtedness Proposed C F D Boundary M ap

RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

UPLAND, CALIFORNIA, DECLARING INTENTION TO

ESTABLISH PROPOSED COMMUNITY FACILITIES DISTRICT
NO. 2022-1 (ENCLAVE AT UPLAND) OF THE CITY OF
UPLAND
WHEREAS, the City Council (the “City Council”) of the City of Upland (the “City”) has received a written petition from LENNAR HOMES OF CALIFORNIA, LLC, a California limited liability company (the “Owner”), the owner of certain real property within the City of Upland (the “City”) requesting that the City Council initiate proceedings for the formation of a community facilities district, pursuant to Chapter

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

NOW THEREFORE, the City Council of the City of Upland hereby finds, determines and resolves as follows:

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

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

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

Section 4. Types of Facilities; Incidental Expenses.

The proposed types of public facilities to be financed by the proposed CFD 2022-1 (the “Facilities”) include but are not limited to:
(a) Facilities owned and operated by the City in lieu of certain City development impact fees, which include, but are not limited to park, traffic, water, sewer, storm drain and other capital improvements, police and fire facilities; and
(b) The incidental expenses proposed to be incurred are: (i) the cost of planning and designing the public facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the proposed CFD 2022-1, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the proposed CFD 2022-1, and (iii) any other expenses incidental to the construction, completion, and inspection of the public Facilities (the “Incidental Expenses”).

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

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

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

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

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

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

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

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

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

Section 9. Prohibition of Owner Contracts. Pursuant to Section 53329.5 of the Act, the City Council finds that the public interest will not be served by allowing the owners of property within proposed CFD No. 2022-1 to enter into a contract in accordance with subdivision (a) of that section, and that such

Resolution No.

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owners shall not be permitted to elect to perform the work and enter into a written contract with the City for the construction for the Facilities pursuant to said Section 53329.5.

Section 10. Hearing. A public hearing on the formation of proposed CFD No. 2022-1 shall be held at 7:00 p.m. on June 27, 2022 at the City Council Chamber located at 460 N. Euclid Avenue, Upland, CA 91786 or via teleconference as directed by the City due to COVID-19 social distancing guidelines.

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

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

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

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

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

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

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

PASSED, APPROVED AND ADOPTED this 23rd day of May, 2022.

___________________________
Bill Velto, Mayor

I, Keri Johnson, City Clerk of the City of Upland, do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council held on the 23rd day of May, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Keri Johnson, City Clerk

A-1

EXHIBIT A

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2022-1 (ENCLAVE AT UPLAND)

OF THE CITY OF UPLAND

A Special Tax shall be levied on all Taxable Property within the boundaries of Community Facilities District No. 2022-1 (Enclave at Upland) of the City of Upland (“CFD No. 2022-1”) and collected each Fiscal Year commencing in Fiscal Year 2022- 23, in an amount determined by the CFD Administrator through the application of the procedures described below. All of the real property within CFD No. 2022-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.

1. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Map. An Acre means 43,560 square feet of land.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
“Administrative Expenses” means the following actual or reasonably estimated costs related to the administration of CFD No. 2022-1 including, but not limited to:
the costs of preparing and computing the Annual Special Tax (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City, the County or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2022-1, or any designee thereof complying with arbitrage rebate requirements, including without limitation rebate liability costs and periodic rebate calculations; the costs to the City, CFD No. 2022-1, or any designee thereof complying with disclosure or reporting requirements of the City or CFD No. 2022-1, associated with applicable federal and State laws; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs to the City, CFD No. 2022-1, or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses.

Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2022-1 for any other administrative purposes of CFD No. 2022-1, including attorney’s fees and other costs related to commencing and pursuing any foreclosure of delinquent Special Taxes.
“Annual Special Tax” means the Special Tax actually levied in any Fiscal Year on any Assessor’s Parcel.
“Assessor” means the Assessor of the County of San Bernardino.

A-2

“Assessor's Parcel” means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel Number.
“Assessor's Parcel Map” means an official map of the Assessor designating parcels by Assessor’s Parcel Number.
“Assessor's Parcel Number” means the number assigned to an Assessor's Parcel by the County for purposes of identification.
“Assigned Special Tax” means the Special Tax of that name described in Section

3.A below.
“Attached Residential Property” means Residential Property for which each Residential Unit share an interior wall with another Residential Unit. “Backup Special Tax” means the Special Tax of that name described in Section 3.B below.
“Bonds” means any bonds or other Debt of CFD No. 2022-1, whether in one or more series, secured by the levy of Special Taxes.
“Building Permit” means a building permit for construction of a Residential Unit within CFD No. 2022-1 issued by the City.
“Building Square Footage” means all of the square footage of usable area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, or similar area. The determination of Building Square Footage shall be made by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or by reference to appropriate records kept by the City.
“Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD Administrator” means an authorized representative of the City, or designee thereof, responsible for determining the Special Tax Requirement, for preparing the Annual Special Tax roll and/or calculating the Backup Special Tax. “CFD No. 2022-1” means the Community Facilities District No. 2022-1 (Enclave at Upland) of the City of Upland.
“City” means the City of Upland, California.
"Condominium" means a unit, whether attached or detached, meeting the statutory definition of a condominium contained in the California Civil Code Section 4285. “Council” means the City Council of the City acting as the legislative body of CFD No. 2022-1 under the Act.
“County” means the County of San Bernardino, California. “Debt” means any binding obligation to pay or repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts.
“Debt Service” means for each Fiscal Year, the total amount of principal and interest payable on any Outstanding Bonds during the Calendar Year commencing on January 1 of such Fiscal Year.

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“Detached Residential Property” means Residential Property not classified as Attached Residential Property.
“Developed Property” means for each Fiscal Year, all Taxable Property, exclusive of Provisional Property, for which a Building Permit was issued prior to May 1 of the previous Fiscal Year. An Assessor’s Parcel classified as Developed Property but for which the Building Permit that caused such Assessor’s Parcel to be classified as Developed Property has been cancelled and/or voided prior to the Fiscal Year for which Special Taxes are being levied shall be reclassified as Undeveloped Property, provided that the levy of the Annual Special Tax after such reclassification shall not be less than 1.1 times the annual Debt Service less Administrative Expenses on all Outstanding Bonds. If Bonds have not been issued, an Assessor’s Parcel classified as Developed Property for which such a Building Permit has been cancelled and/or voided shall be reclassified as Undeveloped Property.
“Exempt Property” means for each Fiscal Year, all Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section 8 below. “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 4285 that creates individual lots for which Building Permits may be issued without further subdivision.
“Fiscal Year” means the period starting on July 1 and ending the following June 30. “Funding Agreement” means the Funding Agreement dated as of June 1, 2022, by and between the City and Lewis Management Corp., as it may be amended.

“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same.
“Land Use Class” means any of the classes listed in Table 1 under Section 3 below. “Lot” means a parcel created by a Final Map on which a Residential Unit can be constructed.
“Maximum Special Tax” means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Sections 3.C and 3.D below, which may be levied in a given Fiscal Year on such Assessor’s Parcel of Taxable Property. “Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for the purpose of constructing one or more non-residential units or facilities.
“Outstanding Bonds” means all Bonds, which are deemed to be outstanding under the Indenture.
“Prepayment Amount” means the amount required to prepay the Annual Special Tax obligation in full for an Assessor’s Parcel as described in Section 6.A below.

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“Property Owner Association Property” means any Assessor’s Parcel within the boundaries of CFD No. 2022-1 owned in fee by a property owner association, including any master or sub-association.
“Proportionately” or “Proportionate” means for Developed Property, that the ratio of the actual Special Tax levy to the applicable Assigned Special Tax or Backup Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor's Parcels of Undeveloped Property. “Proportionately” may similarly be applied to other categories of Taxable Property as listed in Section 4 below. “Provisional Property” means all Assessor’s Parcels of Public Property, Property Owner Association Property or property that would otherwise be classified as Exempt Property pursuant to the provisions of Section 8, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage as set forth in Section 8. “Public Property” means any property within the boundaries of CFD No. 2022-1, which is owned by, or irrevocably offered for dedication to the federal government, the State of California, the County, the City or any other public agency; provided however that any property owned by a public agency and leased to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use.
“Residential Property” means Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing one or more Residential Units.
“Residential Unit” means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental, separate from adjacent residential dwelling units.
“Special Tax” means any special tax levied within CFD No. 2022-1 pursuant to the Act and this Rate and Method of Apportionment of Special Tax. “Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Taxable Property to pay the Special Tax for the remaining life of CFD No. 2022-1. “Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay regularly scheduled Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on the Outstanding Bonds; (iii) pay Administrative Fees and Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) accumulate funds to pay directly for acquisition or construction of facilities authorized by CFD No. 2022-1 and as required by the Funding Agreement provided that the inclusion of such amount does not cause an increase in the Special Tax to be levied on Undeveloped Property; and (vi) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (vii) a credit for funds available to reduce the Annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture.

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“State” means the State of California.
“Taxable Property” means all of the Assessor's Parcels within the boundaries of CFD No. 2022-1, which are not exempt from the levy of the Special Tax pursuant to law or Section 8 below.
“Trustee” means the trustee or fiscal agent under the Indenture. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Provisional Property.

2. LAND USE CLASSIFICATION
Each Fiscal Year, beginning with Fiscal Year 2022-23, each Assessor’s Parcel within CFD No. 2022-1 shall be classified as Taxable Property or Exempt Property. In addition, all Taxable Property shall further be classified as Developed Property, Undeveloped Property or Provisional Property, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment of Special Tax determined pursuant to Sections 3 and 4 below.

Furthermore, each Assessor’s Parcel of Developed Property shall be classified according to its applicable Land Use Class based on its land use type and Building Square Footage.

3. SPECIAL TAX RATES

A. Assigned Special Tax for Developed Property

The Assigned Special Tax applicable to an Assessor's Parcel classified as Developed Property commencing in Fiscal Year 2022-23 shall be determined pursuant to Table 1 below.

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Table 1
Assigned Special Tax Rates

B. Backup Special Tax for Developed Property
The Backup Special Tax for Developed Property commencing in Fiscal Year 2022-23 shall be $41,404 per Acre.

For the purpose of calculating the Backup Special Tax, the land area applicable to a Condominium shall be computed from the Acreage of the Lot on which the Condominium is located, with the Acreage for such Lot allocated equally among all of the Condominiums located or to be located on such Lot.

C. Maximum Special Tax for Developed Property
The Maximum Special Tax for Developed Property shall be the greater of the Assigned Special Tax for Developed Property and the Backup Special Tax for Developed Property.

D. Maximum Special Tax for Provisional Property and Undeveloped Property
The Maximum Special Tax for Provisional Property and Undeveloped Property commencing in Fiscal Year 2022-23 shall be $41,404 per Acre.

Land
Use
Class
Land Use Type Building
Square Footage
Assigned
Special Tax
1 Detached Residential Property > 1,900 $2,106 per
Residential Unit
2 Detached Residential Property 1,801 – 1,900 $2,059 per Residential Unit
3 Detached Residential Property 1,701 – 1,800 $2,023 per Residential Unit
4 Detached Residential Property ≤ 1,700 $1,995 per
Residential Unit
5 Attached Residential Property > 1,750 $1,804 per
Residential Unit
6 Attached Residential Property 1,626 – 1,750 $1,747 per Residential Unit
7 Attached Residential Property 1,501 – 1,625 $1,694 per Residential Unit
8 Attached Residential Property ≤ 1,500 $1,673 per
Residential Unit
9 Non-Residential Property N/A $41,404 per Acre

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4. METHOD OF APPORTIONMENT
For each Fiscal Year, commencing Fiscal Year 2022-23, the CFD Administrator shall levy the Special Tax on all Taxable Property in accordance with the following steps:

Step 1: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at 100% of the applicable Assigned Special Tax; Step 2: If additional monies are needed to satisfy the Special Tax Requirement after Step 1 has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped Property;
Step 3: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, then the Special Tax amount determined in Step 1 shall be increased Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the Maximum Special Tax for Developed Property; Step 4: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional Property up to 100% of the Maximum Special Tax for Provisional Property.

Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of a delinquency or default in the payment of the Special Tax applicable to any other Assessor’s Parcel within CFD No. 2022-1 by more than ten percent (10%) above what would have been levied in the absence of such delinquencies or defaults.

5. COLLECTION OF SPECIAL TAXES
Collection of the Annual Special Tax shall be made by the County in the same manner as ordinary ad valorem property taxes are collected and the Annual Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the Council may provide for (i) other means of collecting the Special Tax, including direct billings thereof to the property owners; and (ii) judicial foreclosure of delinquent Annual Special Taxes.

6. PREPAYMENT OF SPECIAL TAX OBLIGATION
A. Prepayment in Full
Property owners may prepay and permanently satisfy the Special Tax Obligation by a cash settlement with the City as permitted under Government Code Section 53344. The following definitions apply to this Section 6:
“CFD Public Facilities Costs” means $3,600,000 or such lower number as (i) shall be determined by the CFD Administrator as sufficient to acquire or construct the facilities to be financed under the Act and financing program for CFD No. 2022-1, or (ii) shall be determined by the Council concurrently with a covenant that it will not issue any more Bonds (except refunding bonds).

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“Construction Fund” means the fund (regardless of its name) established pursuant to the Indenture to hold funds, which are currently available for expenditure to acquire or construct the facilities or pay fees authorized to be funded by CFD No. 2022-1.
“Future Facilities Costs” means the CFD Public Facilities Costs minus (i) costs previously paid pursuant to the Funding Agreement to acquire or construct the facilities, (ii) monies currently on deposit in the Construction Fund, and (iii) monies currently on deposit in an escrow or other designated fund that are expected to be available to finance CFD Public Facilities Costs pursuant to the Funding Agreement.
“Outstanding Bonds” means all Previously Issued Bonds, which remain outstanding as of the first interest and/or principal payment date following the current Fiscal Year excluding Bonds to be redeemed at a later date with proceeds of prior Special Tax prepayments.
“Previously Issued Bonds” means all Bonds that have been issued prior to the date of prepayment.

The Special Tax Obligation applicable to an Assessor’s Parcel of Developed Property, or Undeveloped Property for which a Building Permit has been issued may be prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor’s Parcel only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel eligible to prepay the Special Tax Obligation shall provide the CFD Administrator with written notice of intent to prepay, and designate or identify the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the Prepayment Amount for such Assessor’s Parcel within thirty (30) days of the request, and may charge a reasonable fee for providing this service. Prepayment must be made at least 60 days prior to any redemption date for the CFD No. 2022-1 Bonds to be redeemed with the proceeds of such prepaid Special Taxes, unless a shorter period is acceptable to the Trustee and the City.

The Prepayment Amount (defined below) shall be calculated for each applicable Assessor’s Parcel or group of Assessor’s Parcels as summarized below (capitalized terms as defined below):

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Prepayment Amount
plus Defeasance Amount
plus Prepayment Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount (defined in Step 14 below) shall be calculated as follows:

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Step No.:

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

2. For Assessor’s Parcels of Developed Property, determine the Maximum Special Tax. For Assessor’s Parcels of Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has already been issued for that Assessor’s Parcel.

3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the total expected Maximum Special Tax revenue for CFD No. 2022- 1 assuming all Building Permits have been issued (build-out) within CFD No. 2022-1, excluding any Assessor’s Parcels for which the Special Tax Obligation has been previously prepaid.

4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid for all applicable parcels and round that amount up to the nearest $5,000 increment (the “Bond Redemption Amount”).

5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (expressed as a percentage), if any, on the Outstanding Bonds to be redeemed at the first available call date (the “Redemption Premium”).

6. Compute the Future Facilities Costs.

7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the “Future Facilities Prepayment Amount”).

8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the expected redemption date for the Outstanding Bonds which, depending on the Indenture, may be as early as the next interest payment date.

9. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities Prepayment Amount and the Prepayment Administrative Fees from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment.

10. Subtract the amount computed in paragraph 9 from the amount computed in paragraph 8 (the “Defeasance Amount”).

11. Calculate the administrative fees and expenses of CFD No. 2022-1, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming CFD No. 2022-1, and

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the costs of recording any notices to evidence the prepayment and the redemption (the “Prepayment Administrative Fees”).

12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Indenture) on the prepayment calculation date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”). No Reserve Fund Credit shall be granted if, after the Prepayment Amount is calculated, reserve funds are below 100% of the reserve requirement.

13. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the “Capitalized Interest Credit”).

14. The amount to prepay the Special Tax Obligation is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 10, and 11, less the amounts computed pursuant to paragraphs 12 and 13 (the “Prepayment Amount”).

15. From the Prepayment Amount, the sum of the amounts computed pursuant to paragraphs 4, 5, and 10, less the amounts computed pursuant to paragraphs 12 and 13 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make Debt Service payments. The amount computed pursuant to paragraph 7 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 11 shall be retained by CFD No. 2022-1.

The Prepayment Amount may be sufficient to redeem an amount other than a $5,000 increment of CFD No. 2022-1 Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to redeem CFD No. 2022-1 Bonds to be used with the next prepayment of CFD No. 2022-1 Bonds.

The CFD Administrator will confirm that all previously levied Special Taxes have been paid in full. With respect to any Assessor's Parcel for which the Special Tax Obligation is prepaid in full, once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Special Tax and the release of the Special Tax lien on such Assessor’s Parcel, and the obligation of the owner of such Assessor's Parcel to pay the Special Tax shall cease.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less

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Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year.

B. Partial Prepayment
The Special Tax on an Assessor’s Parcel of Developed Property or Undeveloped Property for which a building permit has been issued may be partially prepaid.

The amount of the prepayment shall be calculated as in Section 6.A.; except that a partial prepayment shall be calculated according to the following formula:

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

PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section

6.A
F = the percentage by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax Obligation A = the Prepayment Administrative Fees and Expenses from Section 6.A
The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax Obligation, (ii) the percentage by which the Special Tax Obligation shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax Obligation for an Assessor’s Parcel within sixty (60) days of the request and may charge a reasonable fee for providing this service.

With respect to any Assessor’s Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Section 6.A., and (ii) indicate in the records of CFD No. 2022-1 that there has been a partial prepayment of the Special Tax Obligation and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel.

Notwithstanding the foregoing, no partial prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed partial prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year.

7. TERM OF SPECIAL TAX
The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement for a period not to exceed forty (40) Fiscal Years commencing with Fiscal Year 2022-23, provided however that the Special Tax will cease to be levied in an

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earlier Fiscal Year if the CFD Administrator has determined that all Bonds that are expected to be issued have been issued and all required interest and principal payments on all Outstanding Bonds have been paid.

8. EXEMPTIONS
The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels of Public Property, (ii) Assessor’s Parcels of Property Owner Association Property, or (iii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, and (v) Assessor’s Parcels of Developed Property classified as Non-Residential Property as determined reasonably by the CFD Administrator, provided that no such classification would reduce the sum of all Taxable Property in CFD No. 2022-1 to less than 8.90 Acres. Assessor’s Parcels which cannot be classified as Exempt Property because such classification would reduce the sum of all Taxable Property in CFD No. 2022-1 to less than 8.90 Acres shall be classified as Provisional Property and will continue to be subject to the CFD No. 2022-1 Special Taxes accordingly. Tax exempt status for the purpose of this paragraph will be assigned by the CFD Administrator in the chronological order in which property becomes eligible for classification as Exempt Property.

If the use of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s Parcel is no longer classified as one of the uses set forth in the first paragraph of Section 8 above that would make such Assessor’s Parcel eligible to be classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property.

9. APPEALS
Any landowner who pays the Special Tax and claims the amount of the Special Tax levied on his or her Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such error not later than thirty-six (36) months after first having paid the first installment of the Special Tax that is disputed. If following such consultation the CFD Administrator determines that an error has occurred, then the CFD Administrator shall take any of the following actions, in order of priority, in order to correct the error:
(i) Amend the Special Tax levy on the landowner’s Assessor’s Parcel(s) for the current Fiscal Year prior to the payment date,
(ii) Require the CFD to reimburse the landowner for the amount of the overpayment to the extent of available CFD funds, or
(iii) Grant a credit against, eliminate or reduce the future Special Taxes on the landowner’s Assessor’s Parcel(s) in the amount of the overpayment.

If following such consultation and action by the CFD Administrator the landowner believes such error still exists, such person may file a written notice of appeal with the City Council. Upon the receipt of such notice, the City Council or designee may establish such procedures as deemed necessary to undertake the review of any such appeal. If the City Council or designee determines an error still exists, the CFD

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Administrator shall take any of the actions described as (i), (ii) and (iii) above, in order of priority, in order to correct the error.

The City Council or designee thereof shall interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguities and make determinations relative to the administration of the Special Tax and any landowner appeals. The decision of the City Council or designee shall be final.

RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

UPLAND, CALIFORNIA DECLARING NECESSITY TO INCUR

A BONDED INDEBTEDNESS OF PROPOSED COMMUNITY
FACILITIES DISTRICT NO. 2022-1 (ENCLAVE AT UPLAND)

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

NOW THEREFORE, the City Council of the City of Upland hereby finds, determines and resolves as follows:

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

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

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

Section 4. Bond Authorization. The amount of the bonded indebtedness of CFD No. 2022-1 may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the indebtedness is proposed to be incurred as authorized pursuant to the Act. The amount of the indebtedness proposed to be authorized for CFD No. 2022-1 is $6,500,000.

Section 5. Hearing. A public hearing on the formation of proposed CFD No. 2022-1 shall be held at 7:00 p.m. on June 27, 2022 at the City Council Chamber located at 460 N. Euclid Avenue, Upland, CA 91786 or via

Resolution No.

Page. 2

teleconference as directed by the City due to COVID-19 social distancing guidelines. Said hearing shall be conducted concurrently with the hearing on the formation of CFD No. 2022-1.

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

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

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

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

PASSED, APPROVED AND ADOPTED this 23rd day of May, 2022.

___________________________
Bill Velto, Mayor

I, Keri Johnson, City Clerk of the City of Upland, do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council held on the 23rd day of May, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Keri Johnson, City Clerk

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EXHIBIT “A”

FACILITIES
The proposed types of public facilities to be financed by the proposed CFD 2022-1 (the “Facilities”) include but are not limited to:
(a) Facilities owned and operated by the City in lieu of certain City development impact fees, which include, but are not limited to park, traffic, water, sewer, storm drain and other capital improvements, police and fire facilities; and
(b) The incidental expenses proposed to be incurred are: (i) the cost of planning and designing the public facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the proposed CFD 2022-1, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the proposed CFD 2022-1, and (iii) any other expenses incidental to the construction, completion, and inspection of the public Facilities.

S T A F F R E P O R T
I T E M N O . 13.E .

D A T E :M ay 2 3, 2 02 2
T O :M A YO R A N D C I T Y C O U N C I L
F R O M : M I C H A E L B L A Y, C I T Y M A N A G E R P R E P A R E D B Y : B R A D E N Y U, P U B L I C W O R K S D I R E C TO R

M I C H E L L E M A D R I Z , M A N A G E M E N T A N A LY S T S U B J E C T :R E C O M M E N D A T I O N O F P R O P O S E D C A N D I D A T E S TO F I L L

U N S C H E D U L E D V A C A N C Y O N T H E S A N A N TO N I O W A T E R C O M PA N Y B O A R D O F D I R E C TO R S.

R E C O M M E N D E D A C T I O N
I t i s recom m en d ed th at t he C it y C ou ncil d is cu ss p rop os ed cand id ates and m ake recom m end ations t o fill th e un sc hed ul ed vacancy t o th e S an A nt oni o Water C om p an y B oard of D irectors.

G O A L S T A T E M E N T
Th e p rop os ed act ion s u p p orts t he C ity’s strateg ic efforts to m ai n t ain reason ab l e wat er rates b y d evelop ing a l ong -term syst em at ic strateg y to d evelop facilities in n eed of im p rovem en t, an d b y im p lem entin g m anag em en t an d finan cial controls.

B A C K G R O U N D
Th e C it y of U p l and ow ns c ont rol li ng in terests th e S an A nt oni o Water C om p an y (S A W C o) (70 .66 % in terest ) an d as a sharehold er, the C ity is ent it led t o vot e i n th e el ect ion s to select th e B oard of D i rec tors, w hich it d oes th rou g h a p roxy ap p oi nt ed b y the C it y C ou nc il . T his con trol allows th e C ity C oun ci l t o en s u re th at S A W C o take t h e C it y's in terest s in to con sid eration in their resp ective b usin ess d ecision s.

O n M arch 8 , 20 21 , t he C i ty C oun cil ap p roved a slat e of d i rec tors that al so in cl u d ed Tom Th om as to t h e S an A n ton io W ater C om p any B oard of D irectors. M r. Th om as ' s eat w as s et to exp ire in 2 02 5. M r. T hom as was also in th e roll of P resid ent of th e B oard .

E xisting D irecto r T erm E xpirat io n
Ru d y Z un ig a 20 23
W ill E lliott 20 23
M artha G oss 20 23
B ill Velto 20 25
B ob C ab le 20 25
Kati Parker 20 25
Tom T hom as 20 25

I S S U E S /A N A L Y S I S
W ith Tom T h om as' p assing on Feb ruary 2 6, 20 22 , his p osit ion on th e S A W C o B oard of D irectors, as well as his role as P resid ent h as b een vacated . A lth oug h th e S A W C o's B oard of D irectors are all ow ed t o sel ect his rep lacem ent to fil l p osi ti on t il l 2 02 3, the S A W C o B oard h as d ecid ed to allow th e C ity C oun cil to p rop ose a can d id ate(s) for th eir B oard ’s con sid eration.

At th e reg ular m eet in g of th e C ity C ou nc il on A p ri l 1 1, 20 22 , th e C oun ci l d irected th e C ity C lerk's offic e to recruit ap p li cat ion s for b ot h B oard s . B y t he ap p li cat ion cl osi ng d ate of M ay 1, 20 22 th e C ity received five ap p lication s.

O n th e M ay 9 , 20 22 , th e C ity C oun cil d irected st aff to b ri n g th is it em b ack for con sid eration and t o g i ve ad d it ion al tim e t o rec eive m ore ap p lications. T h e C it y C l erk reop en ed the ap p lication p eri od an d ad vertised th e vacan cy on t h e C it y's s oci al m ed i a p latform s, as a result, th e C ity C lerk received two ad d itional ap p lication s b y M ay 1 5, 2 02 2 sub m ission d ead line.

Th e C it y h as received w ritt en in terest from t he foll ow in g p eop le for t h e S A W C o B oard : B ob B owcock, Rob ert D eLoach, C h ri s D ig g s, A d h u ri m (A l) Kep u ska, M ichael M il h i ser, and Avid eh Razavi . Th eir resum es/ap p lications are attached to this rep ort.

F I S C A L I M P A C T S
Th ere is n o fiscal im p act associated with th is action .

A L T E R N A T I V E S
N one.

AT TAC HM E NT S :

Description
Bowcock application
DeL oach application
Diggs application
Kapuska application (updated)
M ilhiser application
Razavi application

AL K E P U S K A , P . E .

PHONE -
Over 10 years of experience leading teams and executing projects in power delivery with a focus in distribution planning and design , contracting with major IOUs and municipal entities . Other areas include renewable project development and execution, and substation project engineering.

PROFESSIONAL EXPERIENCE
September 2020 – Present TRC Companies Southern California Director – Distribution Engineering
• Responsible for the profit center relating to profitability, client management, production, hiring, training, and other activities related to day to day operations.
• Pursue business development opportunities with existing and new clients. • Develop and execute the company's business strategies in order to attain company goals. • Intimately knowledgeable with the Municipal/IOU utility contracting landscape in California and other states.

August 2018 – September 2020 Pike Engineering Rancho Cucamonga, CA Director – Engineering and Services for California
• Responsible for the profit center relating to profitability, business development, client management, production, hiring, training, and other activities related to day to day operations. • Led an organization of 130+ personnel, at peak, performing work on behalf of 3 major IOU clients with multiple work streams for each client.
• Led a 100+ person ramp up for engineering and design on the PG&E system. • Part of the team that successfully negotiated contracts with multimillion dollar value • Successfully lead the team to be shortlisted with SCE Distribution RFP. • Clients include PG&E, SCE, Xcel Energy.

October 2010 – August 2018 ENCO Utility Services Anaheim, CA Manager of Engineering – Engineering & Planning
• Electrical Utility Responsibilities
o Manage engineering, planning, and drafting staff.
o Responsible for all planning, engineering, and design of electrical distribution system per California General Order 128 and City of Moreno Valley standards for our major client, Moreno Valley Utility (MVU).
o Responsible for preparation of work orders, project budgets, and estimates. Review and approve engineering drawings.
o Project manage large number of projects concurrently in the following different areas: medium voltage electrical utility facilities and substation, consulting telecommunication services for renewable projects, and business development.
o Preparation of annual Distribution System Planning (DSP) study for Moreno Valley Electric Utility, including recommendation of capital investments for a five year period to maintain reliable service and support future growth.
o Project engineer for all capital investment projects for Moreno Valley Electric Utility, including but limited to: 12kV backbone systems, 115kV/12kV substations, 33kV/12kV substations, SCADA, distribution automation, etc.
o Support industrial, commercial, and residential developers with planning, engineering, and design of electrical facilities on behalf of Moreno Valley Electric Utility. Including specification of power distribution transformers, switches, cable, capacitors, protection, etc. o Represent MVU in meetings with developers, contractors, and other stakeholders. o Provide field engineering for operation and maintenance per California General Order 165, routine switching, emergency sectionalizing and restoration, and energization of new facilities.

• Renewable Projects and Telecommunication
o Part of the team responsible for analyzing and negotiating Interconnection Agreements for utility grade solar projects with CAISO and PG&E. Including firsthand knowledge of CAISO tariffs. o Prepare interconnection applications for new utility scale solar projects and shepherd projects through the required interconnection studies.
o Responsible for managing the telecommunication project management team from business development to project execution and closing.
o Consulting clients include: Sun Edison, Dominion Virginia Power, S&C Electric Company, Clenera Solar Power, Dashiell Corp, Depcom, Solar Frontier, Con Edison Development, and Tesla Energy. o Developed excellent business relationships with clients, major utility telecom companies, and other stakeholders.

Distribution Engineer – Engineering & Planning
• Support industrial, commercial, and residential developers with planning, engineering, and design of electrical facilities on behalf of MVU. Including specification of power distribution transformers, switches, cable, capacitors, protection, switchgear, etc.
• Provide field engineering for routine switching, emergency sectionalizing and restoration, and energization of new facilities.
• Perform plan check for residential tracks, commercial design, and protection studies. • Prepare cost estimates and create work order for new line extensions and other electrical projects. • Program field equipment, such as, capacitor banks, reclosers, VFI switches, etc.

Technical Business Analyst
• Provide analysis and designing business procedures and forms by way of Visual Basic for Application (VBA), SQL, or other programming languages for streamlining processes to increase efficiency and improve control procedures for ENCO and its clients.
• Identifying options for improving business systems and bridging the needs of the business with the use of IT.

COMPUTER SKILLS
• Software skills include: MS Word, MS Excel, MS Projects, MS Power Point, EasyPower, AutoCAD, Matlab. • A very wide range of computer experience that includes programming in different languages, IT services, and microcontroller programming.

EDUCATION
• 2008 California State University Fullerton, CA Bachelor’s of Science in Electrical Engineering
• 2010 Claremont Graduate University Claremont, CA Master’s of Science in Financial Engineering

CERTIFICATIONS
Professional Engineer (PE) – CA E21642