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03-03-2021 Complete Agenda Packet
IMPORTANT COVID-19 NOTICE In an effort to protect public health and prevent the spread of COVID-19 and to enable appropriate social distancing, the Mayor and City Council meeting is not open for public attendance at this time. All meetings will be held via tele-conference. To view the live meeting: Select the link to view the live-stream on the City’s website: http://sanbernardinocityca.iqm2.com/Citizens/Detail_Meeting.aspx?ID=3009 or Spectrum & Frontier customers may view the broadcast on Channel 3. You may also view the archived video on the City’s website the day after the meeting. To provide public comments: Email your written comment to publiccomments@sbcity.org by 4:00 p.m. the day of the scheduled meeting; or Call (909)384-5208 and leave a recorded comment not to exceed three (3) minutes by 4:00 p.m. the day of the scheduled meeting. The subject line of your email should include the meeting date, w hether your comment is for the Special Meeting, Closed Session, or Open Session, and w hether it is for public comment or for a specific agenda item. Example: 03/03/2021 – Open Session - Agenda Item No. 1 To provide public comments for a Public Hearing: Send an email to publiccomments@sbcity.org by 4:00 p.m. the day of the scheduled meeting. Include your name, telephone number, and the agenda item number. At the time of the requested agenda item, the City Clerk will call the commenter. Each person will be allowed to speak f or up to three-minutes. W ritten comments will be provided to the Mayor and City Council prior to the meeting and will be posted online for public review, but will not be read aloud. Voicemail comments will be played aloud during the appropriate public comment portion of the meeting. Please note that written & recorded comments received after the deadline will not be included in the record until the next regular meeting. Recorded comments received past the deadline will not be played during the meeting. To view PowerPoint presentations, written comments, or any revised documents for this meeting date select the link below: http://edocs.sbcity.org/WebLink/Browse.aspx?id=4107807&dbid=0&repo=SB Or visit the City Clerk’s page: From the City’s homepage www.sbcity.org select the Government category -->City Clerk-- > on the Navigation menu select Search for Records Online --> Council Agendas--> Current Year 2021--> Meeting Date CITY OF SAN BERNARDINO AGENDA FOR THE REGULAR MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY WEDNESDAY, MARCH 3, 2021 5:30 PM – CLOSED SESSION 7:00 PM – OPEN SESSION VIA ZOOM • SAN BERNARDINO, CA 92410 • WWW.SBCITY.ORG Theodore Sanchez John Valdivia Damon L. Alexander COUNCIL MEMBER, W ARD 1 MAYOR COUNCIL MEMBER, WARD 7 Sandra Ibarra Robert D. Field MAYOR PRO TEM, W ARD 2 CITY MANAGER Juan Figueroa Sonia Carvalho COUNCIL MEMBER, W ARD 3 CITY ATTORNEY Fred Shorett Genoveva Rocha COUNCIL MEMBER, W ARD 4 CITY CLERK Ben Reynoso COUNCIL MEMBER, W ARD 5 Kimberly Calvin COUNCIL MEMBER, W ARD 6 Welcome to a meeting of the Mayor and City Council of the City of San Bernardino. o Written comment on any item may also be submitted to the City Clerk to be included in the meeting record. It will not be read aloud by the City Clerk. o Those who wish to speak on public or quasi-judicial hearing items will have three minutes for each item. o Please contact the City Clerk’s Office (909) 384-5002 two working days prior to the meeting for any requests for reasonable accommodation to include interpreters. o All documents for public review are on file with the City Clerk’s Office or may be accessed online by going to www.sbcity.org. Regular Meeting Agenda March 3, 2021 Mayor and City Council of the City of San Bernardino Page 3 Printed 2/26/2021 1. CALL TO ORDER Attendee Name Present Absent Late Arrived Council Member, Ward 1 Theodore Sanchez Mayor Pro-Tem, Ward 2 Sandra Ibarra Council Member, Ward 3 Juan Figueroa Council Member, Ward 4 Fred Shorett Council Member, Ward 5 Ben Reynoso Council Member, Ward 6 Kimberly Calvin Council Member, Ward 7 Damon L Alexander Mayor John Valdivia City Manager Robert D. Field City Attorney Sonia Carvalho City Clerk Genoveva Rocha 5:30 P.M. 2. CLOSED SESSION PUBLIC COMMENT 3. CLOSED SESSION 1. Closed Session (A) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1): a. Andrea Miller v. City of San Bernardino, et al., San Bernardino Superior Court Case No. CIVDS2015337 b. Jackie Aboud v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVDS203562 c. Karen Cervantes v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVDS2012538 d. Mirna Cisneros v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVDS2012926 e. Don Smith v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVSB2025375 f. Matthew Brown v. City of San Bernardino, San Bernardino Superior Court Case No. CIVSB2025900 (B) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation (Pursuant to Government Code Section 54956.9(c): Two Cases 7:00 P.M. Regular Meeting Agenda March 3, 2021 Mayor and City Council of the City of San Bernardino Page 4 Printed 2/26/2021 4. INVOCATION AND PLEDGE OF ALLEGIANCE 5. CLOSED SESSION REPORT 6. CITY MANAGER UPDATE 7. APPOINTMENTS 2. Planning Commission Appointment (Ward 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Ronnie E. Lewis, III to the Planning Commission, representing Ward 7. Mr. Lewis will replace Edward G. Woolbert with the term ending December 2024. 3. Animal Control Commission Appointment (Ward 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Ms. Alberta (Bertie) R. Vanettes to the Animal Control Commission representing Ward 7. Ms. Vanettes will replace Marilyn F. Taub with the term ending December 2024. 4. General Plan Advisory Committee Appointment (Ward 1) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Paul Guerrero to the General Plan Advisory Committee representing Ward 1 with the term ending December 2022. Council Staff has verified that appointee is a re gistered voter within the City. 8. PRESENTATIONS 5. Proclamation - National Employee Appreciation Day - March 5, 2021 (All Wards) 9. PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA 10. STAFF REPORTS 6. Commercial Cannabis Business Permit Forfeitures Update (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept the Commercial Cannabis Business Permit Forfeitures Update. 7. Carousel Mall - Developer Selection (Ward 1) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California receive a report and provide staff direction regarding the development of Regular Meeting Agenda March 3, 2021 Mayor and City Council of the City of San Bernardino Page 5 Printed 2/26/2021 the Carousel Mall property. 8. 2021 SCAG General Assembly Delegate and Alternate (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the selection of a Delegate and Alternate to the 2021 Southern California Association of Governments (SCAG) Regional Conference and General Assembly (GA) May 6, 2021, remote participation only web -conference via Zoom. 9. FY 2020/21 Mid-Year Budget Report (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Receive and File the FY 2020/21 Mid-Year Budget Report; 2. Authorize staff to proceed with preparing and soliciting Requests for Proposals (RFPs) for the replacement of the City’s building and safety permitting system, Public Works work order and asset management system, and financial management payroll and timekeeping system; and 3. Authorize the Director of Finance to Amend the FY 2020/21 Budget as outlined in the FY 2020/21 Mid-Year Budget Report to include recommended changes from the Mayor and City Council. 10. Design Services Agreement for Nicholson Neighborhood Park Improvements (Ward 6) Recommendation Adopt Resolution No. 2021-37 of the Mayor and City Council of the City of San Bernardino, California, approving the award of a Design Services Agreement with RHA Landscape Architects Planners, Inc., in the amount of $215,295 for Design Services for the Nicholson Neighborhood Park Improvements Project (PR21 -006). 11. Third Amendment to Lease Agreement with Vanir Tower Building, Inc. (Ward 1) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution 2021-33 authorizing the City Manager to execute Amendment No. 3 to the Lease Agreement with Vanir Tower Building, Inc., for 290 North D Street, San Bernardino, California, increasing rental space to include Suite 803, and extending the Lease Agreement through June 30, 2024. 11. PUBLIC HEARINGS 12. Community Facilities District No. 2018-1 (Safety Services) Annexation No. 3 (Ward 3) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: Regular Meeting Agenda March 3, 2021 Mayor and City Council of the City of San Bernardino Page 6 Printed 2/26/2021 1. Hold a Public Hearing; 2. Adopt Resolution No. 2021-38 Resolution of the Mayor and City Council of the City of San Bernardino, California, acting as the legislative body of th e City of San Bernardino Community Facilities District No. 2018-1 (Safety Services), and calling elections therein; 3. Hold a special landowner election and canvass the election; and 4. Adopt Resolution No. 2021-39 Resolution of the Mayor and City Council of the City of San Bernardino, California, acting as the legislative body of the City of San Bernardino Community Facilities District No. 2018-1 (Safety Services) certifying the results of the March 3, 2021 annexation and special tax election. 13. Community Facilities District No. 2019-1 (Maintenance Services): Annexation No. 7 (Ward 3) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; and 2. Adopt Resolution No. 2021-40 of the Mayor and City Council of the City of San Bernardino, California, calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 7); 3. Hold a special landowner election and canvass the election; 4. Adopt Resolution No. 2021-41 of the Mayor and City Council of the City of San Bernardino, California, declaring election results for Community Faci lities District No. 2019-1 (Maintenance Services) (Annexation No. 7); 5. Introduce Ordinance No. MC-1554 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2021-22 to pay the annual costs of the maintenance and servicing of landscaping, lighting, streets, street sweeping, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facili ties District No. 2019-1 (Maintenance Services); and 6. Schedule the final reading and adoption of Ordinance No MC -1554 for March 17, 2021. 14. Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: Regular Meeting Agenda March 3, 2021 Mayor and City Council of the City of San Bernardino Page 7 Printed 2/26/2021 1. Hold a public hearing; 2. Adopt Resolution No. 2021-42 of the Mayor and City Council of the City of San Bernardino, California, establishing Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino, County of San Bernardino, State of California, and the boundaries thereof and approving a Funding Agreement; 3. Adopt Resolution No. 2021-43 of the Mayor and City Council of the City of San Bernardino, California, determining the necessity to incur a bonded indebtedness for Community Facilities District No. 2021-1 (Ferree Street), submitting to the qualified electors of the Community Facilities District a proposition to authorize the levy of a special tax therein, to authorize such Community Facilities District to incur a bonded indebtedness secured by the levy of a special therein to finance certain types of public facilities and to establish an appropriations limit for such Community Facilities District and calling a special election for the Community Facilities District on a proposition for incurring such bonded indebtedness; 4. Adopt Resolution No. 2021-44 of the Mayor and City Council of the City of San Bernardino, California calling a special election and submitting to the voters of Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino propositions regarding the annual levy of special taxes within the Community Facilities District to pay principal of and interest on bonds thereof and to pay the costs of public facilities and establishing an appropriations limit therefor; 5. Adopt Resolution No. 2021-45 of the Mayor and City Council of the City of San Bernardino, California declaring the results of the consolidated special elections within Community Facilities District No. 2021-1 (Ferree Street); and 6. Conduct first reading of Ordinance No. MC-1555 of the Mayor and City Council of the City of San Bernardino, California, acting as the legislative body of Community Facilities District No. 2021-1 (Ferree Street), authorizing the levy of special taxes in such community facilities district. 15. Community Facilities District No. 2019-1 (Maintenance Services): Annexation No. 8 (Ward 6)) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; 2. Adopt Resolution No. 2021-46 of the Mayor and City Council of the City of San Bernardino, California, calling for an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 8); 3. Hold a special landowner election and canvass the election; Regular Meeting Agenda March 3, 2021 Mayor and City Council of the City of San Bernardino Page 8 Printed 2/26/2021 4. Adopt Resolution No. 2021-47 of the Mayor and City Council of the City of San Bernardino, California, declaring election results for Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 8); 5. Introduce Ordinance No. MC-1556 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2021 -22 to pay the annual costs of the maintenance and servicing of landscaping, lighting, streets, street sweeping, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and 6. Schedule the final reading and adoption of Ordinance No MC -1556 for March 17, 2021. 12. CONSENT CALENDAR 16. Biennial Review and Amendments to the City's Conflict of Interest Code (All Wards) Recommendation Adopt Resolution No. 2021-48 of the Mayor and City Council of the City of San Bernardino, California, approving and adopting the amended Conflict of Interest Code pursuant to the Political Reform Act of 1974. 17. Approval of the Mayor and City Council Meeting Minutes (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the meeting minutes from the May 6, 2020, February 11, 2021, and February 24, 2021, Mayor and City Council meetings. 18. Executive Order Extending Deadlines for Entitlements (All Wards) Recommendation Adopt Resolution No. 2021-49 of the Mayor and City Council of the City of San Bernardino, California, ratifying Executive Order 2021 -01 of the Director of Emergency Services for the City of San Bernardino, California, enacting and implementing time extensions for land use entitlements, bu ilding plan check approvals, building permits, and other miscellaneous deadlines due to the impacts of the novel coronavirus (COVID-19) and other protective measures during a period of local emergency. 19. First Amendment to the Community Development Block Grant Coronavirus Subrecipient Agreement Between the City of San Bernardino and the Housing Authority of the County of San Bernardino (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-50 authorizing the execution of the First Amendment to the Community Development Block Grant Coronavirus Subrecipient Regular Meeting Agenda March 3, 2021 Mayor and City Council of the City of San Bernardino Page 9 Printed 2/26/2021 Agreement between the City of San Bernardino and the Housing Authority of the County of San Bernardino; and 2. Authorize the City Manager or Designee to take any further actions and execute the First Amendment to the Agreement between the City of San Bernardino and the Housing Authority of the County of San Bernardino. 20. Agreement with State of California for Permanent Local Housing Allocation (PLHA) Program (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-51 authorizing the City Manager or Designee to enter into an agreement with the State of California for the Permanent Local Housing Allocation program and the accept the $1,622,027 grant; and 2. Direct the Finance Director to amend the FY 2020/21 adopted budget to establish a new fund and program for PLHA for $1,622,027. 21. Code Amendment - Downtown Advisory Committee Final Reading (Wards 1 & 3) Recommendation Accept the final reading and adopt Ordinance MC-1552 of the Mayor and City Council of the City of San Bernardino, California, adopting a Code Amendme nt to Section 2.17.040 related to Appointment-Registered voters requirement- Compensation-Oath, with the amendments identified by the Mayor and City Council motion to approve the ordinance. 22. Memorandum of Understanding to Support the Making Hope Happen Foundation Prepare a Promise Neighborhoods Program Application in Partnership with San Bernardino City Unified School District (Ward: 1, 4 and 7) Recommendation Adopt Resolution No. 2021-52 of the Mayor and City Council of the City of San Bernardino, California, directing the City Manager to sign and execute a Letter of Support and Memorandum of Understanding to support the Making Hope Happen Foundation prepare a Promise Neighborhoods Program application in Partnership with San Bernardino City Unified School District. 23. Emergency Rental Assistance Program Committee (All Wards) Recommendation Adopt Resolution No. 2021-53 of the Mayor and City Council of the City of San Bernardino, California, establishing the Emergency Rental Assistance Program Committee. 24. Investment Portfolio Report for January 2021 (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, Regular Meeting Agenda March 3, 2021 Mayor and City Council of the City of San Bernardino Page 10 Printed 2/26/2021 California, accept and file the Monthly Investment Portfolio Report for January 2021. 25. Approval of Commercial and Payroll Disbursements (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for January and February 2021. 26. Resolution Approving the Annual Renewal of the City’s Property Insurance for FY 2021-22 (All Wards) Recommendation Adopt Resolution No. 2021-54 of the Mayor and City Council of the City of San Bernardino, California, approving the annual renewal of the City’s property insurance for a premium not to exceed $1,292,000 for the term beginning April 1, 2021 and ending March 31, 2022. 27. Construction Contract Award - Community Center Improvements (Wards 1, 6) Recommendation Adopt Resolution No. 2021-55 of the Mayor and City Council of the City of San Bernardino, California: 1. Approving the award of a Construction Contract with JCOS Development, Inc., in the amount of $374,800 to provide community center upgrades at Delmann Heights Community Center and 5th Street Senior Center; 2. Authorizing project construction, construction contingencies and inspections costs in the total amount of $191,704 for Delmann Heights Community Center Upgrades Project (CIP PR21-005), and in the total amount of $248,900 for 5th Street Senior Center Upgrades Project (CIP PR21-004); and 3. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. 28. Exempt Surplus Land Declaration - San Marcos Street and Congress Street Property (Ward 3) Recommendation Adopt Resolution No. 2021-35 of the Mayor and City Council of the City of San Bernardino, California, declaring City-owned property commonly known as San Marcos Avenue and Congress Street, located northerly of the southerly line of Parcel 3 as shown on Parcel Map 19648 recorded in Parcel Map Book 253 Pages 51 and 52 records of San Bernardino County, APN 0274 -011-29 (“Property”), as “exempt surplus land,” as defined, and direct the City Manager to comply with the requirements of the Surplus Land Act, Government Code, Section 54220 et seq., for that exempt surplus land. Regular Meeting Agenda March 3, 2021 Mayor and City Council of the City of San Bernardino Page 11 Printed 2/26/2021 13. ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS 29. Establishment of Ad Hoc and Standing Council Sub-Committees 14. ITEMS TO BE REFERRED TO COMMITTEE 15. REPORTS ON CONFERENCES/MEETINGS ATTENDED 16. ADJOURNMENT The next joint regular meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency will be held on Wednesday, March 17, 2021 via tele-conference. Closed Session will begin at 5:30 p.m. and Open Session will begin at 7:00 p.m. CERTIFICATION OF POSTING AGENDA I, Genoveva Rocha, CMC, City Clerk for the City of San Bernardino, California, hereby certify that the agenda for the March 3, 2021 Regular Meeting of the Mayor and City Council and the Mayor and City Council acting as the Successor Agency to the Redevelopment Agency was posted on the City’s bulletin board located at 201 North “E” Street, San Bernardino, California, at the San Bernardino Public Library located at 555 West 6th Street, San Bernardino, California, and on the City’s website sbcity.org on February 26, 2021. I declare under the penalty of perjury that the foregoing is true and correct. ___________________________________ Genoveva Rocha, CMC, City Clerk Regular Meeting Agenda March 3, 2021 Mayor and City Council of the City of San Bernardino Page 12 Printed 2/26/2021 NOTICE: Any member of the public may address this meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item appearing on the agenda by approaching the microphone in the Council Chamber when the item about which the member desires to speak is called and by asking to be recognized. Any member of the public desiring to speak to the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency concerning any matter not on the agenda but which is within the subject matter jurisdiction of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may address the body at the end of the meeting, during the period reserved for public comments. Said total period for public comments shall not exceed 60 minutes, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. A three minute limitation shall apply to each member of the public, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. No member of the public shall be permitted to “share” his/her three minutes with any other member of the public. Speakers who wish to present documents to the governing body may hand the documents to the City Clerk at the time the request to speak is made. The Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may refer any item raised by the public to staff, or to any commission, board, bureau, or committee for appropriate action or have the item placed on the next agenda of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. However, no other action shall be taken nor discussion held by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item which does not appear on the agenda unless the action is otherwise authorized in accordance with the provisions of subdivision (b) of Section 54954.2 of the Government Code. Public comments will not be received on any item on the agenda when a public hearing has been conducted and closed. Page 1 Closed Session City of San Bernardino Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Sonia Carvalho, City Attorney Subject: Closed Session (A) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1): a. Andrea Miller v. City of San Bernardino, et al., San Bernardino Superior Court Case No. CIVDS2015337 b. Jackie Aboud v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVDS203562 c. Karen Cervantes v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVDS2012538 d. Mirna Cisneros v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVDS2012926 e. Don Smith v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVSB2025375 f. Matthew Brown v. City of San Bernardino, San Bernardino Superior Court Case No. CIVSB2025900 (B) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation (Pursuant to Government Code Section 54956.9(c): Two Cases 1 Packet Pg. 13 Page 1 Appointment City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Damon L Alexander, Council Member, Ward 7 Subject: Planning Commission Appointment (Ward 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Ronnie E. Lewis, III to the Planning Commission, representing Ward 7. Mr. Lewis will replace Edward G. Woolbert with the term ending December 2024. Background The Planning Commission was established under Municipal Code Chapter 2.22, Ordinance No. MC-1473, and is tasked with advising the Mayor, City Council and City staff on the physical development of the city, including zoning, building, land use and related matters. The commission is comprised of nine (9) members who serve at pleasure of the Mayor and City Council. Pursuant to Chapter 2.17 of the Municipal Code, each City Council member shall nominate one member who shall serve during and for the term of the nominating Council member, and the Mayor shall nominate two members who shall serve during and for the term of the Mayor. 2020-2025 Key Strategic Targets and Goals The proposed commission appointment aligns with Key T arget No. 2: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact No fiscal impact to City. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Ronnie E. Lewis, III to the Planning Commission, representing Ward 7. Mr. Lewis will replace Edward G. Woolbert with the term ending December 2024. Attachments Attachment 1 Commission Application - Mr. Ronnie E. Lewis, III 2 Packet Pg. 14 7135 Page 2 Ward: 7 2 Packet Pg. 15 2.a Packet Pg. 16 Attachment: Attachment 1 - MCC.Commission Application - Ronnie E. Lewis III (7135 : Planning Commission Appointment (Ward 7)) 2.a Packet Pg. 17 Attachment: Attachment 1 - MCC.Commission Application - Ronnie E. Lewis III (7135 : Planning Commission Appointment (Ward 7)) 2.a Packet Pg. 18 Attachment: Attachment 1 - MCC.Commission Application - Ronnie E. Lewis III (7135 : Planning Commission Appointment (Ward 7)) Page 1 Appointment City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Damon L Alexander, Council Member, Ward 7 Subject: Animal Control Commission Appointment (Ward 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Ms. Alberta (Bertie) R. Vanettes to the Animal Control Commission representing Ward 7. Ms. Vanettes will replace Marilyn F . Taub with the term ending December 2024. Background The Animal Control Commission was established by Resolution No. 2018 -45 on February 21, 2018 and is charged with advising the Mayor, City Council and City Staff on matters pertaining to animal control in the City. The commission is also charged with serving in an advisory capacity on strategies, policies and programs designed to ensure quality care for animals housed at the City of San Bernardino’s Animal Shelter. Members are appointed to this commission on the basis of demonstrated knowledge and experience in the area of animal care, animal husbandry, wild animals, animal behavior or other areas which relate to the mission and purpose of the commission. The commission is comprised of nine (9) memb ers who serve at pleasure of the Mayor and City Council. Pursuant to Chapter 2.17 of the Municipal Code, each City Council member shall nominate one member who shall serve during and for the term of the nominating Council member, and the Mayor nominates two members. 2020-2025 Key Strategic Targets and Goals The proposed commission appointment aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact No fiscal impact to City. Conclusion Approve the appointment of Ms. Alberta (Bertie) R. Vanettes to the Animal Control Commission with the term ending December 2024. 3 Packet Pg. 19 7145 Page 2 Attachments Attachment 1 Commission Application - Ms. Alberta (Bertie) R. Vanettes Ward: 7 3 Packet Pg. 20 3.a Packet Pg. 21 Attachment: Attachment 1 - MCC.Commission Application - Alberta (Bertie) R. Vanettes (7145 : Animal Control Commission Appointment (Ward 3.a Packet Pg. 22 Attachment: Attachment 1 - MCC.Commission Application - Alberta (Bertie) R. Vanettes (7145 : Animal Control Commission Appointment (Ward 3.a Packet Pg. 23 Attachment: Attachment 1 - MCC.Commission Application - Alberta (Bertie) R. Vanettes (7145 : Animal Control Commission Appointment (Ward Page 1 Appointment City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Theodore Sanchez, Council Member, Ward 1 Subject: General Plan Advisory Committee Appointment (Ward 1 ) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Paul Guerrero to the General Plan Advisory Committee representing Ward 1 with the term ending December 2022. Council Staff has verified that appointee is a registered voter within the City. Background The General Plan Advisory Committee was established by Resolution No. 2021 -02 on January 20, 2021. Discussion The General Plan Advisory Committee (GPAC) is an advisory committee established by the Mayor and City Council to assist with the update the City's comprehensive General Plan. The General Plan Advisory Committee serves as an important component of the public participation program providing one of the primary c ommunication channels for the community making recommendations to the Planning Commission and the Mayor and City Council. Meetings of the GPAC will be open and public in accordance with the Brown Act. The General Plan Advisory Committee is comprised of seventeen (17) members who serve at pleasure of the Mayor and City Council. Pursuant to Resolution No. 2021 -02, the Mayor shall appoint three (3) members and each City Council member shall nominate two (2) members. In accordance with the City Charter and t he City's Municipal Code, appointees must be residents of the City of San Bernardino. Appointees should be able to clearly articulate the community perspective and/or the area of the City in which they live. 2020-2025 Key Strategic Targets and Goals The proposed commission appointment aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact No fiscal impact to City. 4 Packet Pg. 24 7149 Page 2 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Paul Guerrero to the General Plan Advisory Committee representing Ward 1 with the term ending December 2022. Council Staff has verified that appointee is a registered voter within the City. Attachments Attachment 1 Commission Application - Mr. Paul Guerrero Ward: 1 Synopsis of Previous Council Action: January 20, 2021 - Resolution No. 2021-02 establishing the General Plan Advisory Committee was adopted. 4 Packet Pg. 25 4.a Packet Pg. 26 Attachment: Attachment 1 - MCC.Commission Application - Paul Guerrero (7149 : General Plan Advisory Committee Appointment (Ward 1)) 4.a Packet Pg. 27 Attachment: Attachment 1 - MCC.Commission Application - Paul Guerrero (7149 : General Plan Advisory Committee Appointment (Ward 1)) 4.a Packet Pg. 28 Attachment: Attachment 1 - MCC.Commission Application - Paul Guerrero (7149 : General Plan Advisory Committee Appointment (Ward 1)) Page 1 Presentation City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: John Valdivia, Mayor Subject: Proclamation - National Employee Appreciation Day - March 5, 2021 (All Wards) 5 Packet Pg. 29 5.a Packet Pg. 30 Attachment: Attachment 1 - PROCLAMATION - NATIONAL EMPLOYEE APPRECIATION DAY (7152 : Proclamation - National Employee Appreciation Day - March 5, 2021 (All Wards)) Page 1 Staff Report City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: Commercial Cannabis Business Permit Forfeitures Update (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept the Commercial Cannabis Business Permit Forfeitures Update. Background Commercial Cannabis Business (CCB) Permit applicants with awarded CCB permits have had two years to complete the process of submitting tenant improvement plans for Plan Check, obtaining a Building Permit, completing Tenant Improvements and obtaining a Certificate of Occupancy so that they may operate. At the time of this report, the following is the status of the permit activity: 1. Six (6) Commercial Cannabis Business applicants awarded a CCB permit have completed the permitting and work necessary and are in operation; 2. Six (6) applicants are proceeding with their Tenant Improvements and obtaining permits; 3. One (1) applicant is seeking relocation of their CCB permit; and 4. Three (3) applicants have been unable to perform. At the October 21, 2020 Mayor and City Council meeting, City Council adopted Resolution No. 2020-253, adopting guidelines for Relocation Applications, Performance Bonds, and Permit Processing Deadlines Resulting in Forfeitures pursuant to San Bernardino Municipal Code Sections 5.10.090, 5.10.200, and 5.10.300. This report addresses Mayor and City Council direction related to Processing Deadlines for Awarded Commercial Cannabis Business Licenses. Discussion In accordance with Resolution 2020-253, staff was directed to notify any applicant of their lack of performance and subject to potential forfeiture of their awarded Commercial Cannabis Business Permit. This action was intended to make the applicants aware of the pending action by the City and encourage them to take notice and proceed. Not 6 Packet Pg. 31 7138 Page 2 performing included any applicant that had become stagnant in the process, no longer had a secured location, had not submitted for Tenant Improvement plans for their awarded location, and/or had not pulled a Building Permit to begin const ruction. Staff identified seven (7) applicants who fell into the “Not Performing” category who received a Notice of Potential Forfeiture. Forfeiture letters to these applicants were sent via USPS Mail and email on November 9, 2020 (Attachment 1). Applica nts were given a deadline of February 10, 2021 to respond to the Notice. Some applicants were quick to respond in order to continue moving through the process. However, in an effort to continue communication with the applicants that still had not responded , staff sent reminder notifications on January 28, 2021(Attachment 2). As of February 11, 2021, staff was able to bring four (4) applicants, out of the seven (7) applicants, up to date in their performance and they are moving forward through the process. However, there are three (3) remaining applicants that have been unresponsive or have not been able to perform by the deadline. Therefore, they have forfeited their CCB permits. The three (3) applicants include: 1. CCB 18-0020 - AM.PM. Management, Inc. dba Cold Creek Organics Located at 1942 N. I Street 2. CCB 18-0034 - Luke LLC dba Organtix Orchards Located at 2552 W. Shenandoah Way 3. CCB 18-0037 - Ali Cooper & Laythen Matines dba Accessible Options Located at 151 N. E Street Forfeiture Letters were sent via USPS and email to the applicants listed above on February 18, 2021 notifying them of their forfeiture (Attachment 3). As part of the process, the Forfeiture Letter contained information regarding the appeal process, if the applicants wanted to pursue that course of action. However, in keeping with the direction given by Council, if the vacancies become available, staff will fill these vacancies by drawing from the established list of qualified applicants (Attachment 2). This list comes from those applicants who met all qualifications but were not originally awarded a CCB permit by the Mayor and City Council at the February 21, 2019 meeting. 2020-2025 Key Strategic Targets and Goals The Commercial Cannabis Business Permit Forfeitures are consistent with Key Target No 1: Financial Stability. Specifically, allowing other qualified commercial cannabis businesses to proceed in the process and become open and operational thereby allowing the City to capture cannabis revenue. Fiscal Impact Commercial Cannabis Business Permit applicants are required to pay plan check and permit fees as part of the process moving forward. 6 Packet Pg. 32 7138 Page 3 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, accept the Commercial Cannabis Business Permit Forfeiture update. Attachments Attachment 1 Notice of Potential Forfeiture Letters to Applicants Attachment 2 Reminder Notice of Potential Forfeiture Email to Applicants Attachment 3 Notice of Forfeiture Letter to Applicants Attachment 4 Commercial Cannabis Business Application Ranking List Ward: All Synopsis of Previous Council Actions: October 21, 2020 Mayor and City Council meeting, City Council adopted Resolution No. 2020-253, adopting guidelines for Relocation Applications, Performance Bonds, and Permit Processing Deadlines Resulting in Forfeitures pursuant to San Bernardino Municipal Code Sections 5.10.090, 5.10.200, and 5.10.300. 6 Packet Pg. 33 290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org Community & Economic Development IMPORTANT NOTICE: FAILURE TO RESPOND MAY RESULT IN LOSS OF COMMERCIAL CANNABIS PERMIT OPPORTUNITY TRANSMITTED VIA E-MAIL AND FIRST-CLASS MAIL AM.PM.ManagementInc@gmail.com 1942 N. I Street San Bernardino, CA 92405 November 9, 2020 SUBJECT: NOTICE OF POTENTIAL FORFEITURE OF CITY OF SAN BERNARDINO COMMERCIAL CANNABIS PERMIT APPLICATION To AM-PM MGMT, Inc (Cold Creek Organics): You have been identified as a Commercial Cannabis Business (CCB) Permit applicant that was selected on February 21, 2019 by the San Bernardino City Council to proceed with a CCB Permit to operate a commercial cannabis business within the City. Your selection resulted from a competitive process following your payment of a substantial application fee. To date you have failed to take action to obtain the permit. As it has been more than 18 months, the City has taken action to ensure that applicants move forward or forfeit the opportunity. On October 21, 2020, Mayor and City Council adopted Ordinance No. 2020-253 Permit Deadlines Resulting in Forfeitures pursuant to San Bernardino Municipal Code Section 5.10.300. The Ordinance provides that any Commercial Cannabis Business that has been granted approval to pursue a permit pursuant to Section 5.10.180 (Commercial Cannabis Business Permittee Selection Process) of the City of San Bernardino Municipal Code, but is not in operation prior to the effective date of adopted Resolution 2020-253, shall be granted a period, not to exceed three (3) months, from the effective date of the Resolution to secure a final business location and submit construction drawings/plans to the City for interior/exterior improvements. These improvements may include electrical, plumbing, fire, planning permits or reviews, and any other permits or licenses, or reviews as may be necessary by the relevant departments or government entities in charge of said permits. This notice is to inform you that you have until Wednesday, February 10, 2021 to provide proof of a secured business location and submit for your Tenant Improvements as outlined above. Failure to perform will result in the forfeiture of the awarded Commercial Cannabis Business (CCB18-0020) effective February 11, 2021. 6.a Packet Pg. 34 Attachment: Attachment 1 - Notice of Potential Forfeiture Letters to Applicants (7138 : Commercial Cannabis Business Permit Forfeitures City of San Bernardino Page 2 of 2 Please respond immediately to this notice if you want to avoid forfeiture. Should you have additional questions regarding this matter, please contact us at (909) 384-5357 or via e-mail at mora-rodriguez_el@sbcity.org or sanchez_stephanie@sbcity.org. Regards, Stephanie Sanchez, Economic Development Specialist Elizabeth Mora-Rodriguez, Associate Planner 6.a Packet Pg. 35 Attachment: Attachment 1 - Notice of Potential Forfeiture Letters to Applicants (7138 : Commercial Cannabis Business Permit Forfeitures 290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org Community & Economic Development IMPORTANT NOTICE: FAILURE TO RESPOND MAY RESULT IN LOSS OF COMMERCIAL CANNABIS PERMIT OPPORTUNITY TRANSMITTED VIA E-MAIL AND FIRST-CLASS MAIL rdeangelo@gmail.com 2552 Shenandoah Way San Bernardino, CA 92407 November 9, 2020 SUBJECT: NOTICE OF POTENTIAL FORFEITURE OF CITY OF SAN BERNARDINO COMMERCIAL CANNABIS PERMIT APPLICATION To Luke, LLC (Organtix Orchards): You have been identified as a Commercial Cannabis Business (CCB) Permit applicant that was selected on February 21, 2019 by the San Bernardino City Council to proceed with a CCB Permit to operate a commercial cannabis business within the City. Your selection resulted from a competitive process following your payment of a substantial application fee. To date you have failed to take action to obtain the permit. As it has been more than 18 months, the City has taken action to ensure that applicants move forward or forfeit the opportunity. On October 21, 2020, Mayor and City Council adopted Ordinance No. 2020-253 Permit Deadlines Resulting in Forfeitures pursuant to San Bernardino Municipal Code Section 5.10.300. The Ordinance provides that any Commercial Cannabis Business that has been granted approval to pursue a permit pursuant to Section 5.10.180 (Commercial Cannabis Business Permittee Selection Process) of the City of San Bernardino Municipal Code, but is not in operation prior to the effective date of adopted Resolution 2020-253, shall be granted a period, not to exceed three (3) months, from the effective date of the Resolution to secure a final business location and submit construction drawings/plans to the City for interior/exterior improvements. These improvements may include electrical, plumbing, fire, planning permits or reviews, and any other permits or licenses, or reviews as may be necessary by the relevant departments or government entities in charge of said permits. This notice is to inform you that you have until Wednesday, February 10, 2021 to provide proof of a secured business location and submit for your Tenant Improvements as outlined above. Failure to perform will result in the forfeiture of the awarded Commercial Cannabis Business (CCB18-0034) effective February 11, 2021. 6.a Packet Pg. 36 Attachment: Attachment 1 - Notice of Potential Forfeiture Letters to Applicants (7138 : Commercial Cannabis Business Permit Forfeitures City of San Bernardino Page 2 of 2 Please respond immediately to this notice if you want to avoid forfeiture. Should you have additional questions regarding this matter, please contact us at (909) 384-5357 or via e-mail at mora-rodriguez_el@sbcity.org or sanchez_stephanie@sbcity.org. Regards, Stephanie Sanchez, Economic Development Specialist Elizabeth Mora-Rodriguez, Associate Planner 6.a Packet Pg. 37 Attachment: Attachment 1 - Notice of Potential Forfeiture Letters to Applicants (7138 : Commercial Cannabis Business Permit Forfeitures 290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org Community & Economic Development IMPORTANT NOTICE: FAILURE TO RESPOND MAY RESULT IN LOSS OF COMMERCIAL CANNABIS PERMIT OPPORTUNITY TRANSMITTED VIA E-MAIL AND FIRST-CLASS MAIL ali@justisdevelopmentgroup.com 151 N. E Street San Bernardino, CA 92401 November 9, 2020 SUBJECT: NOTICE OF POTENTIAL FORFEITURE OF CITY OF SAN BERNARDINO COMMERCIAL CANNABIS PERMIT APPLICATION-FOR FAILURE TO TAKE FURTHER ACTIONS TO SECURE PERMIT To Laythen Martines & Ali Cooper for Accessible Options: You have been identified as a Commercial Cannabis Business (CCB) Permit applicant that was selected on February 21, 2019 by the San Bernardino City Council to proceed with a CCB Permit to operate a cannabis business within the City. Your selection resulted from a competitive process following your payment of a substantial application fee. On August 12, 2019 you submitted Plan Check #B1902220 for a Tenant Improvement at 151 N. E Street and on August 27, 2019, you were notified of Plan Check Corrections. However, since that time you have failed to take further action to proceed with establishing your business. The City has taken action to encourage applicants move forward or forfeit the permit. On October 21, 2020, Mayor and City Council adopted Ordinance No. 2020-253 Permit Deadlines Resulting in Forfeitures pursuant to San Bernardino Municipal Code Section 5.10.300. The Ordinance provides that any Commercial Cannabis Business that has been granted approval to pursue a permit pursuant to Section 5.10.180 (Commercial Cannabis Business Permittee Selection Process) of the City of San Bernardino Municipal Code, but is not in operation prior to the effective date of adopted Resolution 2020-253, shall be granted a period, not to exceed three (3) months, from the effective date of the Resolution to secure a final business location and submit construction drawings/plans to the City for interior/exterior improvements. These improvements may include electrical, plumbing, fire, planning permits or reviews, and any other permits or licenses, or reviews as may be necessary by the relevant departments or government entities in charge of said permits. This notice is to inform you that you have until Wednesday, February 10, 2021 to notify the City of your intentions moving forward with the awarded CCB Permit and submit corrections to continue in the Plan Check process. Failure to perform will result in the forfeiture of the awarded Commercial Cannabis Business (CCB18-0037) opportunity effective February 11, 2021. 6.a Packet Pg. 38 Attachment: Attachment 1 - Notice of Potential Forfeiture Letters to Applicants (7138 : Commercial Cannabis Business Permit Forfeitures City of San Bernardino Page 2 of 2 Please respond immediately to this notice if you want to avoid forfeiture. Should you have additional questions regarding this matter, please contact us at (909) 384-5357 or via e-mail at mora-rodriguez_el@sbcity.org or sanchez_stephanie@sbcity.org. Regards, Stephanie Sanchez, Economic Development Specialist Elizabeth Mora-Rodriguez, Associate Planner 6.a Packet Pg. 39 Attachment: Attachment 1 - Notice of Potential Forfeiture Letters to Applicants (7138 : Commercial Cannabis Business Permit Forfeitures From:Stephanie Sanchez To:"Mark Estermyer" Cc:Stephanie Sanchez; Elizabeth Mora-Rodriguez Subject:Reminder - Notice of Potential Forfeiture Date:Thursday, January 28, 2021 1:37:26 PM Attachments:CCB 18-0020 - Notice of Potential Forfeiture.pdf image001.png Importance:High Good Afternoon, We are reaching out to you in regards to your Commercial Cannabis Business Permit (CCB) 18-0020. On November 9, 2020, you were sent a Notice of Potential Forfeiture via email and USPS mail. A copy of the notification has been attached to this email. This email comes to you today as reminder that we have not received a response to this notification. Failure to respond will result in FORFEITURE of the awarded Commercial Cannabis Business Permit. This is to inform you that you have until Wednesday, February 10, 2021 to notify the City of your intentions moving forward with the awarded CCB Permit and provide proof of a secured business location and submit for your Tenant Improvements. Failure to perform will result in the forfeiture of the awarded Commercial Cannabis Business (CCB18-0020) opportunity effective February 11, 2021. Should you have questions, please let me know as soon as possible. Thank you, Stephanie Sanchez Community & Economic Development Economic Development Specialist City of San Bernardino Office: 201 North E St, 3rd Floor Mail: 290 North D St San Bernardino, CA 92401 O: 909-384-5357 Sanchez_Stephanie@SBCity.org Due to the COVID 19 pandemic, our office/counter is open by appointment only. Please visit www.SBCity.org for more information. 6.b Packet Pg. 40 Attachment: Attachment 2 - Reminder Notice of Potential Forfeiture Email to Applicants (7138 : Commercial Cannabis Business Permit From:Stephanie Sanchez To:"ali@justisdevelopmentgroup.com" Cc:Stephanie Sanchez; Elizabeth Mora-Rodriguez Subject:Reminder - Notice of Potential Forfeiture Date:Thursday, January 28, 2021 1:37:31 PM Attachments:CCB 18-0037 - Notice of Potential Forfeiture.pdf image001.png Importance:High Good Afternoon, We are reaching out to you in regards to your Commercial Cannabis Business Permit (CCB) 18-0037. On November 9, 2020, you were sent a Notice of Potential Forfeiture via email and USPS mail. A copy of the notification has been attached to this email. This email comes to you today as reminder that we have not received a response to this notification. Failure to respond will result in FORFEITURE of the awarded Commercial Cannabis Business Permit. This is to inform you that you have until Wednesday, February 10, 2021 to notify the City of your intentions moving forward with the awarded CCB Permit and continue in the Plan Check process. Failure to perform will result in the forfeiture of the awarded Commercial Cannabis Business (CCB18- 0037) opportunity effective February 11, 2021. Should you have questions, please let me know as soon as possible. Thank you, Stephanie Sanchez Community & Economic Development Economic Development Specialist City of San Bernardino Office: 201 North E St, 3rd Floor Mail: 290 North D St San Bernardino, CA 92401 O: 909-384-5357 Sanchez_Stephanie@SBCity.org Due to the COVID 19 pandemic, our office/counter is open by appointment only. Please visit www.SBCity.org for more information. 6.b Packet Pg. 41 Attachment: Attachment 2 - Reminder Notice of Potential Forfeiture Email to Applicants (7138 : Commercial Cannabis Business Permit From:Stephanie Sanchez To:"rdeangelo@gmail.com" Cc:Stephanie Sanchez; Elizabeth Mora-Rodriguez Subject:Reminder - Notice of Potential Forfeiture Date:Thursday, January 28, 2021 1:37:40 PM Attachments:CCB 18-0034 - Notice of Potential Forfeiture.pdf image001.png Importance:High Good Afternoon, We are reaching out to you in regards to your Commercial Cannabis Business Permit (CCB) 18-0034. On November 9, 2020, you were sent a Notice of Potential Forfeiture via email and USPS mail. A copy of the notification has been attached to this email. This email comes to you today as reminder that we have not received a response to this notification. Failure to respond will result in FORFEITURE of the awarded Commercial Cannabis Business Permit. This is to inform you that you have until Wednesday, February 10, 2021 to notify the City of your intentions moving forward with the awarded CCB Permit and provide proof of a secured business location and submit for your Tenant Improvements. Failure to perform will result in the forfeiture of the awarded Commercial Cannabis Business (CCB18-0034) opportunity effective February 11, 2021. Should you have questions, please let me know as soon as possible. Thank you, Stephanie Sanchez Community & Economic Development Economic Development Specialist City of San Bernardino Office: 201 North E St, 3rd Floor Mail: 290 North D St San Bernardino, CA 92401 O: 909-384-5357 Sanchez_Stephanie@SBCity.org Due to the COVID 19 pandemic, our office/counter is open by appointment only. Please visit www.SBCity.org for more information. 6.b Packet Pg. 42 Attachment: Attachment 2 - Reminder Notice of Potential Forfeiture Email to Applicants (7138 : Commercial Cannabis Business Permit 290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org Community & Economic Development TRANSMITTED VIA E-MAIL AND FIRST-CLASS MAIL AM.PM.ManagementInc@gmail.com AM.PM.Management Inc. (Cold Creek Organics) 1942 N. I Street San Bernardino, CA 92405 February 18, 2021 SUBJECT: NOTICE OF FORFEITURE OF CITY OF SAN BERNARDINO COMMERCIAL CANNABIS PERMIT APPLICATION FOR FAILURE TO TAKE FURTHER ACTIONS TO SECURE PERMIT To AM.PM.Management Inc. (Cold Creek Organics): You have been identified as a Commercial Cannabis Business (CCB) Permit applicant that was selected on February 21, 2019 by the San Bernardino City Council to proceed with a CCB Permit to operate a cannabis business within the City. Your selection resulted from a competitive process following your payment of a substantial application fee. However, since that time you have failed to take further action to obtain a permit and proceed with establishing your business. On October 21, 2020, Mayor and City Council adopted Ordinance No. 2020-253 Permit Deadlines Resulting in Forfeitures pursuant to San Bernardino Municipal Code Section 5.10.300. The Ordinance provided that any Commercial Cannabis Business that had been granted approval to pursue a permit pursuant to Section 5.10.180 (Commercial Cannabis Business Permittee Selection Process) of the City of San Bernardino Municipal Code, but was not in operation prior to the effective date of adopted Resolution 2020-253, shall be granted a period, not to exceed three (3) months, from the effective date of the Resolution to have secured a final business location and submitted construction drawings/plans to the City. As of the date of this letter, the City has made several attempts to contact you, via email and USPS notification, to communicate that you were at risk of a potential forfeiture. Due to your lack of response to these communications, non-action regarding your Commercial Cannabis Business Permit and laps of the forfeiture deadline, the City will now seek formal forfeiture of your awarded permit. This notice is to inform you that staff will be taking an item to Mayor and City Council seeking Forfeiture of the awarded Commercial Cannabis Business (CCB18-0020). This item will be placed on the March 3rd Mayor and City Council agenda. 6.c Packet Pg. 43 Attachment: Attachment 3 - Notice of Forfeiture Letter to Applicants (7138 : Commercial Cannabis Business Permit Forfeitures Update (All City of San Bernardino Page 2 of 2 Pursuant to Section 5.10.150 (Appeals), any determination of the Community & Economic Development Director, or their designee, may only be appealed to the City Manager, which decision shall be final. They City Manager may delegate the appeal to the City’s Administrative Law Officer (Hearing Officer) appointed in conformity with Chapter 9.92 of the San Bernardino Municipal Code, in which case, the decision of the Hearing Officer shall be final. Should you wish to file an appeal of this decision, you must do so within ten (10) calendar days of this determination. You may file in accordance with Section 5.10.160 of Ordinance MC-1503. An appeal fee of $3,217.00 will apply. Should you have additional questions regarding this matter, please contact us at (909) 384-5357 or via e-mail at mora-rodriguez_el@sbcity.org or sanchez_stephanie@sbcity.org. Regards, Stephanie Sanchez, Economic Development Specialist Elizabeth Mora-Rodriguez, Associate Planner 6.c Packet Pg. 44 Attachment: Attachment 3 - Notice of Forfeiture Letter to Applicants (7138 : Commercial Cannabis Business Permit Forfeitures Update (All 290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org Community & Economic Development TRANSMITTED VIA E-MAIL AND FIRST-CLASS MAIL rdeangelo@gmail.com Luke, LLC (Organtix Orchards) 2552 Shenandoah Way San Bernardino, CA 92407 February 18, 2021 SUBJECT: NOTICE OF FORFEITURE OF CITY OF SAN BERNARDINO COMMERCIAL CANNABIS PERMIT APPLICATION FOR FAILURE TO TAKE FURTHER ACTIONS TO SECURE PERMIT To Luke, LLC (Organtix Orchards): You have been identified as a Commercial Cannabis Business (CCB) Permit applicant that was selected on February 21, 2019 by the San Bernardino City Council to proceed with a CCB Permit to operate a cannabis business within the City. Your selection resulted from a competitive process following your payment of a substantial application fee. However, since that time you have failed to take further action to obtain a permit and proceed with establishing your business. On October 21, 2020, Mayor and City Council adopted Ordinance No. 2020-253 Permit Deadlines Resulting in Forfeitures pursuant to San Bernardino Municipal Code Section 5.10.300. The Ordinance provided that any Commercial Cannabis Business that had been granted approval to pursue a permit pursuant to Section 5.10.180 (Commercial Cannabis Business Permittee Selection Process) of the City of San Bernardino Municipal Code, but was not in operation prior to the effective date of adopted Resolution 2020-253, shall be granted a period, not to exceed three (3) months, from the effective date of the Resolution to have secured a final business location and submitted construction drawings/plans to the City. As of the date of this letter, the City has made several attempts to contact you, via email and USPS notification, to communicate that you were at risk of a potential forfeiture. Due to your lack of response to these communications, non-action regarding your Commercial Cannabis Business Permit and laps of the forfeiture deadline, the City will now seek formal forfeiture of your awarded permit. This notice is to inform you that staff will be taking an item to Mayor and City Council seeking Forfeiture of the awarded Commercial Cannabis Business (CCB18-0034). This item will be placed on the March 3rd Mayor and City Council agenda. 6.c Packet Pg. 45 Attachment: Attachment 3 - Notice of Forfeiture Letter to Applicants (7138 : Commercial Cannabis Business Permit Forfeitures Update (All City of San Bernardino Page 2 of 2 Pursuant to Section 5.10.150 (Appeals), any determination of the Community & Economic Development Director, or their designee, may only be appealed to the City Manager, which decision shall be final. They City Manager may delegate the appeal to the City’s Administrative Law Officer (Hearing Officer) appointed in conformity with Chapter 9.92 of the San Bernardino Municipal Code, in which case, the decision of the Hearing Officer shall be final. Should you wish to file an appeal of this decision, you must do so within ten (10) calendar days of this determination. You may file in accordance with Section 5.10.160 of Ordinance MC-1503. An appeal fee of $3,217.00 will apply. Should you have additional questions regarding this matter, please contact us at (909) 384-5357 or via e-mail at mora-rodriguez_el@sbcity.org or sanchez_stephanie@sbcity.org. Regards, Stephanie Sanchez, Economic Development Specialist Elizabeth Mora-Rodriguez, Associate Planner 6.c Packet Pg. 46 Attachment: Attachment 3 - Notice of Forfeiture Letter to Applicants (7138 : Commercial Cannabis Business Permit Forfeitures Update (All 290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org Community & Economic Development TRANSMITTED VIA E-MAIL AND FIRST-CLASS MAIL ali@justisdevelopmentgroup.com Laythen Matines & Ali Cooper (Accessible Options) 151 N. E Street San Bernardino, CA 92401 February 18, 2021 SUBJECT: NOTICE OF FORFEITURE OF CITY OF SAN BERNARDINO COMMERCIAL CANNABIS PERMIT APPLICATION FOR FAILURE TO TAKE FURTHER ACTIONS TO SECURE PERMIT To Laythen Matines & Ali Cooper (Accessible Options): You have been identified as a Commercial Cannabis Business (CCB) Permit applicant that was selected on February 21, 2019 by the San Bernardino City Council to proceed with a CCB Permit to operate a cannabis business within the City. Your selection resulted from a competitive process following your payment of a substantial application fee. However, since that time you have failed to take further action to obtain a permit and proceed with establishing your business. On October 21, 2020, Mayor and City Council adopted Ordinance No. 2020-253 Permit Deadlines Resulting in Forfeitures pursuant to San Bernardino Municipal Code Section 5.10.300. The Ordinance provided that any Commercial Cannabis Business that had been granted approval to pursue a permit pursuant to Section 5.10.180 (Commercial Cannabis Business Permittee Selection Process) of the City of San Bernardino Municipal Code, but was not in operation prior to the effective date of adopted Resolution 2020-253, shall be granted a period, not to exceed three (3) months, from the effective date of the Resolution to have secured a final business location and submitted construction drawings/plans to the City. As of the date of this letter, the City has made several attempts to contact you, via email and USPS notification, to communicate that you were at risk of a potential forfeiture. Due to your lack of response to these communications, non-action regarding your Commercial Cannabis Business Permit and laps of the forfeiture deadline, the City will now seek formal forfeiture of your awarded permit. This notice is to inform you that staff will be taking an item to Mayor and City Council seeking Forfeiture of the awarded Commercial Cannabis Business (CCB18-0037). This item will be placed on the March 3rd Mayor and City Council agenda. 6.c Packet Pg. 47 Attachment: Attachment 3 - Notice of Forfeiture Letter to Applicants (7138 : Commercial Cannabis Business Permit Forfeitures Update (All City of San Bernardino Page 2 of 2 Pursuant to Section 5.10.150 (Appeals), any determination of the Community & Economic Development Director, or their designee, may only be appealed to the City Manager, which decision shall be final. They City Manager may delegate the appeal to the City’s Administrative Law Officer (Hearing Officer) appointed in conformity with Chapter 9.92 of the San Bernardino Municipal Code, in which case, the decision of the Hearing Officer shall be final. Should you wish to file an appeal of this decision, you must do so within ten (10) calendar days of this determination. You may file in accordance with Section 5.10.160 of Ordinance MC-1503. An appeal fee of $3,217.00 will apply. Should you have additional questions regarding this matter, please contact us at (909) 384-5357 or via e-mail at mora-rodriguez_el@sbcity.org or sanchez_stephanie@sbcity.org. Regards, Stephanie Sanchez, Economic Development Specialist Elizabeth Mora-Rodriguez, Associate Planner 6.c Packet Pg. 48 Attachment: Attachment 3 - Notice of Forfeiture Letter to Applicants (7138 : Commercial Cannabis Business Permit Forfeitures Update (All CCB Applicant Name License Type Score 1.18-0025 RD San Bernardino LLC Retail 85.09% 2.18-0006 SB Pharma Holdings, Inc. DBA The Row House Retail 83.55% 3.18-0021 Ashe Society SB, LLC ‐ S. E Street Retail 83.52% 4.18-0047 Ocean Green Management, LLC Retail 82.65% 5.18-0044 3P, Inc.Retail 82.55% 6.18-0038 Uplyft LA, LLC Retail 82.50% 7.18-0040 KP Investment Group, LLC Microbusiness 82.48% 8.18-0024 Harvest of San Bernardino ‐ Court St Retail 82.39% 9.18-0016 EEL Holdings, LLC dba Connected Cannabis Co Retail 82.31% 10.18-0046 Organic 1 Healing Inc Retail 82.16% 11.18-0029 ECS Labs, Inc Microbusiness 82.04% 12.18-0026 Harvest of San Bernardino ‐ Orange Show Retail 82.04% 13.18-0015 MED Products Group, Inc.Microbusiness 82.04% 14.18-0022 Ashe Society SB, LLC ‐ Lugo Avenue Retail 82.03% 15.18-0045 Cali Blue Skys Investments Microbusiness 81.69% 16.18-0035 Rznhead, Inc dba Cookies San Bernardino Microbusiness 81.08% 17.18-0030 Alpha Medic LLC Microbusiness 80.88% 18.18-0007 Howard Friedman ‐ 4th St. Dispensary Microbusiness 80.71% Commercial Cannabis Business Application Ranking Sheet 6.d Packet Pg. 49 Attachment: Attachment 4 - CCB Ranking List (7138 : Commercial Cannabis Business Permit Forfeitures Page 1 Staff Report City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: Carousel Mall - Developer Selection (Ward 1) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California receive a report and provide staff direction regarding the development of the Carousel Mall property. Background The Carousel Mall is a 43-acre property located in the historic heart of Downtown San Bernardino. The vast majority of the property is controlled by the City of San Bernardino with the exception of the Harris Company department store property and the Andresen/Enterprise building property both of which front E Street. The Carousel Mall property has been identified as the main catalyst for the future revitalization of Downtown San Bernardino and the strategic sale of the property to the r ight development partner(s) is of key importance to its future redevelopment. In 2008, the City embarked on a detailed planning effort that produced the downtown vision plan. The plan, identified as the San Bernardino Downtown Core Vision and Action Plan (the “Vision Plan”), was approved by the City Council on June 1, 2009. The “Vision Plan” was approved by resolution and not by ordinance and as such, was really only a vision for what the Carousel Mall may be in the future. The Vision Plan did not contain implementation measures such as specific development regulations, programs, public works projects, and financing measures for carrying out the vision in the 2009 Plan. In November 2014, the City made an attempt to promote the redevelopment of the Carousel Mall property. At the time, the Mall was still open but with limited tenancy. The City Council authorized the solicitation of interest seeking a developer to reuse/redevelop the Carousel Mall. On November 2, 2015, instead of selecting a developer, the City Council selected AECOM/Fransen, a consulting team with real estate and master planning experience and entered into an Exclusive Negotiating Agreement (ENA) with respect to the Carousel Mall and Regal Theatre property. AECOM/Fransen prepared a schematic plan which was presented to the City Council in April, 2017, but the ENA with AECOM/Fransen expired and was not extended, due to 7 Packet Pg. 50 7143 Page 2 lack of progress. Discussion On May 15, 2019, the Mayor and the City Council gave direction to proceed with a Request for Qualifications soliciting interest from regional and national developers in the redevelopment of the Carousel Mall property. This process was conducted through a Request for Qualifications (“RFQ”) process so that staff could evaluate the qualification s of each developer, their respective design professional team, their development history and their financial capacity to carry out a project of this magnitude. On December 4, 2019, staff presented the results of the RFQ process to the City Council for their consideration. The City Council selected the top three companies (SCG America, Renaissance Downtown USA and ICO Real Estate Group) and directed staff to proceed to the RFP process. In late April 2020, the City received two submittals in response to the RFP instead of three. Two of the companies, Renaissance Downtown USA and ICO Real Estate Group, submitted a joint proposal and SCG America submitted their proposal. Since that time, staff reviewed the proposals in anticipation of scheduling a pres entation to the Mayor and the City Council. Unfortunately, the COVID 19 pandemic slowed the process, hindering staff’s ability to present the results to the City Council and prevented the development teams from presenting their proposals. On October 28, 2020, staff conducted a workshop with the Mayor and City Council on the status of the Carousel Mall and various alternatives for the development of the property. A number of issues were discussed, including the potential to demolish the existing structures on the site. On January 27, 2021, staff conducted another workshop with the Mayor and the City Council. This workshop was intended to allow the final two development teams (Renaissance Downtown USA/ICO Real Estate Group and SCG America) to present their concept for the development of the Carousel Mall to the Mayor and City Council as well as the community at large. The Mayor and City Council received 55 written comments and 76 recorded comments from the public that were heard during the workshop. No decision was scheduled to be made at the workshop. On February 24, 2021, the Mayor and City Council conducted a special meeting. Subsequent to Council discussion, the Council approved a motion to discuss the results of the RFP and options available to the Mayor and City Council at its March 3, 2021 regular meeting. Selection Process The Mayor and City Council were provided with copies of each proposal, participated in the workshop, whereby each development team presented their proposal, and are familiar with the Carousel Mall property and the surrounding Downtown. The intent of this item is to allow the Mayor and City Council to deliberate on the 7 Packet Pg. 51 7143 Page 3 proposals submitted for their consideration. Copies of the proposals are attached to the staff report. Due to the significance of the Carousel Mall property in Downtown San Bernardino, staff believes it is important to have open dialog before the Mayor and City Council make a decision. Staff has prepared three options; two are related to the developme nt proposal under consideration. The third is an alternate option the Council may wish to consider. Options: 1. Select SCG America and direct the City Manager to negotiate an Exclusive Negotiation Agreement for consideration by the Mayor and City Counc il; or 2. Selecting Renaissance Downtown USA/ICO Real Estate Group and direct the City Manager to negotiate an Exclusive Negotiation Agreement for consideration by the Mayor and City Council; or *Note: If the Mayor and City Council desire to proceed with one of the two development teams identified above, Council will need to specifically identify the team and direct staff to return with a resolution supporting the motion. 3. End the current process and direct the City Manager to master plan the Carousel Mall in conjunction with the Downtown Specific Plan process. Of the three options, staff recommends that the Mayor and City Council adopt option three for the following reasons: 1. Before the City becomes contractually obligated to one specific develo pment entity that would tie up the property for at least 18 months, it is appropriate to evaluate alternatives for the future development of not only the Carousel Mall, but the entire Downtown area. Integrating the Carousel Mall and Downtown into an integrated plan will allow for more cohesive long-term development. 2. The City has embarked upon the development of a Downtown Specific Plan. The Specific Plan process is an appropriate planning tool for creating a visionary plan that is reflective of the interests of the community. 3. Instead of tying up the entire 43 acre Carousel Mall property with a single developer, it may be more appropriate to divide the property into four or more planning areas. Smaller planning areas would increase the financial viability of developing various types of residential, commercial, and mixed-use projects on the Carousel Mall property. Engaging multiple development entities interested in the planning areas improves the likelihood that individual projects will be successfully completed, and will allow smaller firms the opportunity to develop parts of the project site. 4. The adoption of a Downtown Specific Plan will provide assurances to the development industry of the City’s interest in redeveloping Downtown San 7 Packet Pg. 52 7143 Page 4 Bernardino. 5. The adoption of a Form-Based Code as an implementation tool of the Downtown Specific Plan will provide the flexibility necessary to ensure development success. 6. The consideration of a Program Environmental Impact Report to support the Downtown Specific Plan will reduce the processing time and costs associated with future projects in the Downtown. 7. All of the above reduce the risk typically associated with development in the urban core in a city. 8. The creation of a Downtown Specific Plan is also a community based marketing tool for attracting interested developers who share the City’s long-term vision for Downtown San Bernardino. 2020-2025 Key Strategic Targets and Goals The selection of a developer for the Carousel Mall proper ty aligns with Key Target No. 4: Economic Growth & Development. Specifically, the Mayor and City Council is empowered to evaluate alternatives for the sale and development of real property such as the Carousel Mall. Fiscal Impact There is no fiscal impact related to the Mayor and City Council contemplating the selection of a developer for the Carousel Mall property. Conclusion Staff recommends that the Mayor and City Council of the City of San Bernardino, California receive a report and provide staff direction regarding the development of the Carousel Mall property. Attachments Attachment 1 Proposal from SCG America Attachment 2 Proposal from Renaissance Downtown USA/ ICO Real Estate Group Ward: 1 Synopsis of Previous Council Action: May 15, 2019 The Mayor and the City Council gave direction to the City Manager to proceed with a Request for Qualifications soliciting interest from regional and national developers in the redevelopment of the Carousel Mall property. 7 Packet Pg. 53 /THE GALAND CITY OF SAN BERNARDINO RFP # F-20-23 MAY 26, 2020 7.a Packet Pg. 54 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 0 TABLE OF CON-TENTS. Presenting our vision of down- town mixed-use development, our understanding of the op- portunities, and our aspirations for strong public-private part- nerships. 7.a Packet Pg. 55 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) COVER LETTER VISION STATEMENT THE GALAND 1 A LETTER OF INTRODUCTION 1.1 YOUR GOALS 1.2 OUR STRATEGY 1.3 PLANNING PRINCIPLES 1.4 PLACE MAKING 1.5 WHY THE GALAND 2 DEVELOPMENT PLAN 2.1 CITY OF SAN BERNARDINO 2.2 SITE ANALYSIS 2.3 DESIGN CONCEPT 2.4 CONCEPTUAL MASTER PLAN 2.5 MASTER PLAN FRAMEWORK 2.6 DISTRICT - THE PASEO 2.7 DISTRICT - CAROUSEL PLACE 2.8 DISTRICT - CAL VIDA NORTH 2.9 DISTRICT - CAL VIDA SOUTH 2.10 DISTRICT - GALAND WEST 2.11 DISTRICT - GALAND GREEN 2.12 TECHNICAL DATA 2.13 PHASING 2.14 PRELIMINARY DEVELOPMENT SCHEDULE 3 ECONOMIC ANALYSIS / PROFORMA 3.1 MARKET STUDY 3.2 PROFORMAS – HYPOTHETICAL AS IF STABILIZED 3.3 COMMUNITY BENEFITS 3.4 ADDITIONAL PROJECT BENEFITS 4 TRANSACTION TERMS & CONDITIONS 4.1 DEAL STRUCTURE 4.2 PUBLIC PARKING FACILITIES 4.3 MASTER PLAN ALT 1 4.4 MASTER PLAN ALT 2 7.a Packet Pg. 56 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) A NEW FRONTIER FOR THE GATEWAY CITY SAN BERNARDINO 7.a Packet Pg. 57 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) May 26th, 2020 City of San Bernardino 290 North D Street, 3rd Floor San Bernardino, CA 92401 Attn: Jim Slobojan / Deputy Finance Director Greetings, SCG America is proud to submit our proposals for the redevelopment of the Carousel Mall site and environs and to share with you our aspirations for the revitalization of downtown San Bernardino. We are a wholly-owned subsidiary of Shanghai Construction Group – the world’s 9th largest global contractor - with offices in New York City, Los Angeles and Garden Grove, California. SCGA has been active in North America since 1988 with development projects encompassing the mixed-use, residential, and hospitality sectors. We are excited about this opportunity to act as a catalyst for the rejuvenation of downtown San Bernardino. We can surmise that after twelve years of frustrated planning and development efforts you are anxious to have a partner with the financial strength and design vision to finally execute a master plan that fulfills the potential of downtown’s west side to become the kind of vibrant city center that will draw both locals and neighboring town residents to live, work, and play there. While recognizing the challenges, we also see inherent strengths and great potential in San Bernardino. You sit at the nexus of both human and natural resources clustered at the east end of the Inland Empire. In addition to being a government center, San Bernardino enjoys proximity to great educational institutions, first- class medical facilities, and stellar natural recreation areas. Combined with an affordable cost of living and reasonable commute times, we think there is a compelling narrative in downtown San Bernardino for active young Californians seeking an experience-rich, yet affordable, lifestyle. /COVER LETTER SCG America is garnering acclaim for the quality of our work. Our 1.25 million square-foot Tangram mixed- use project is now nearing completion, joining 2014’s One Fulton Square in injecting new life into downtown Flushing, Queens. A 900,000 squarefoot Phase III is now in the pipeline. When complete, Fulton Square will comprise nearly 2.5 million square feet of new development with three hotels totaling 600 rooms, 830 residential units, 250,000sf of office space and over 300,000sf of retail. In downtown Los Angeles, our transformative $300M, 35-story, “Perla on Broadway” condominium is now selling briskly and is slated for occupancy end of this year. West of Times Square, New York, “Manhattan View at MiMA” offers 147 newly-renovated luxury condominiums for both sale and rent. In the hospitality sphere, we currently own over 1300 hotels rooms in US and have over 1000 more keys in development in Orange County. In addition, over 3.5M square feet of future mixed-use development is on the boards. Along with the rest of our talented development team, SCG America is confident in our ability to work with the City of San Bernardino and its residents to generate a visionary, yet practical, plan for the renewal of downtown’s west side. We believe in strong public-private partnerships as a key strategy for a successful business development, and hope that we all make it as our top priority to develop the kind of inspiring downtown community that San Bernardino deserves. Sincerely, Winfred Zhang President & CEO, SCG America 7.a Packet Pg. 58 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND WILL USHER IN A NEW LEVEL OF SERVICE AND EXPERIENCE. IT WILL BE A PLACE WHERE SAN BERNARDINO CAN GREET ITS RESIDENTS & VISITORS IN A DYNAMIC ENVIRONMENT THAT IS RESILIENT, BLENDING WORK, LIVE & PLAY. /VISION STATEMENT 7.a Packet Pg. 59 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) /THE GALAND 7.a Packet Pg. 60 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) Establishing project principles to guide the site planning and property development in or- der to ensure the creation of a community that is built for the everyday and the big day, built for residents and visitors, built for now and built to last. A LETTER OF INTRO -DUCTION. 7.a Packet Pg. 61 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 1.1 YOUR GOALS 1.2 OUR STRATEGY The Carousel Mall Mixed-use Development, transformed into The Galand, envisions a new and exciting destination in the historic core of Downtown San Bernardino and is a primary catalyst for the revitalization of Downtown San Bernardino. The strategy for the finances as well as a carefully thought out design for the site is of key importance to ensure the success of the future development. Our redevelopment strategy is driven first and foremost by the site-specific context of this property. The location in historic Downtown San Bernardino, the adjacency to I-215 Freeway, the proximity to the Civic Center, Theater Square, and Transit Center position the site as catalytic for the future revitalization of Downtown San Bernardino. The location and adjacent uses provide many of the essential drivers for the project. Our master plan is one that benefits the entire city by attracting new businesses and residents, creating a place to come together in celebration, and offering a unique experience to locals and visitors. It functions as a transit-oriented community embodying accessibility and walkability through sustainable practices. Our proposal establishes a neighborhood with a sustainable mix of "live, work + play" for a diverse mix of residents. The architecture, public space, and programming all work towards that vision, creating a vibrant neighborhood and lively destination. Creating a great place is only part of the redevelopment strategy. As important is the economic feasibility of the plan and its ability to be financed. This ensures the viability of each component as it is delivered - with each phase committed to these placemaking and financial feasibility goals. 03 ECONOMIC ANALYSIS 04 TRANSACTION TERM & CONDITIONS02 SITE DEVELOPMENT 01 LETTER OF INTRODUCTION 97.a Packet Pg. 62 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) /PAST /PRESENT /FUTURE San Bernardino has a proud history as the heart of the inland empire. The core of the city offers a tremendous assemblage of historic buildings, walkable blocks, human scale, and highly effective transit network. The Carousel Mall, although cutting edge for its time, eventually turned into a failed experiment that compromised the urban quality and overall livability of the downtown. The Galand proposal offers an opportunity for the city to deliver on many if not all of the goals set out in the 2005 and 2009 vision plans for the Downtown. /CREATE A LIVELY DESTINATION ATTRACTING NEW BUSINESSES AND RESIDENTS 1.3 PLANNING PRINCIPLES 10 THE GALAND 7.a Packet Pg. 63 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) The Galand Master Plan integrates a variety of uses that will promote a rich and varied set of experiences on the site. • The Paseo anchors the northeast corner of the site and complements the theaters across 4th Street with a cluster of office, hotel, service retail, food and beverage uses. • Leading from the paseo, fountain square sits at the corner of the reintroduced 3rd Street extension and brings together a food hall, hotel, and fitness center. All have upper story terraces or balconies that look out over fountain square and F street. • The F street corridor is an important gateway into the site, in that it provides much needed residential uses with ground floor retail and services along its frontage. To the north, it links to the Feldheym neighborhood and the library, to the south, the Metrolink station and San Manuel Stadium. • The town green provides a unifying community activity space at the center of the plan. Along F street, it provides an interesting extension of fountain square, with twin kiosks that provide outdoor dining and views into the central park. The western section provides a community center with outdoor event terrace. • Each of the residential blocks to the north, south, and west of the central green are clustered around internal courtyards and shared amenity spaces. Ground floor service retail and walking paths break up each of the blocks connecting directly to the town green. /PROVIDE A MIXED-USE ENVIRONMENT BLENDING WORK, LIVE AND PLAY /WORK /WORK /WORK /WORK /WORK /LIVE /LIVE /LIVE /LIVE /LIVE /LIVE /LIVE /PLAY /PLAY /PLAY /PLAY /PLAY /PLAY /LEARN /LEARN 1.3 PLANNING PRINCIPLES 1101 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 04 TRANSACTION TERM & CONDITIONS02 SITE DEVELOPMENT 7.a Packet Pg. 64 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) /ASPIRATION /ASPIRATION /ENTERTAINMENT /ENTERTAINMENT /DISCOVERY /DISCOVERY /DISCOVERY /SOCIAL /SOCIAL /TASK /TASK /TASK Key to the proposal is the extension of 3rd Street into the site. This extension provides a compelling terminus to one of the most important axes of the downtown core. Traveling west from city hall plaza, the elevated pedestrian bridge descends in between the Harris and Enterprise buildings. Flanked by ground floor retail and food and beverage uses, the pedestrian connection will integrate high quality mixed uses, public artwork, tile pavers, and human scaled elements such as awnings, specimen trees, and trellis structures. One can hang out with a friend at one of the restaurants that cluster around the plaza, with clusters of café umbrellas spilling out all around the central space. The plaza shares prominence with a multilevel food hall, hotel, and health club, all with terraced views and access down into the plaza. This is the new living room of downtown. Beyond the plaza, the town green offers a slightly more passive set of experiences. The town green combines two food and beverage kiosks with outdoor seating looking into a central green park. Weekly, monthly and seasonal events can happen easily in portions of the central green. on the west end, a community center and outdoor terrace looks /OFFER A DYNAMIC AND ENJOYABLE EXPERIENCE CONTRIBUTING TO THE VITALITY OF DOWNTOWN SAN BERNARDINO back at the downtown core and can become an amenity for surrounding neighborhoods as well as local residents. The town green can become a center of activity for the inland empire, accommodating the needs of both locals and visitors. A potential list of activities could include movie nights, concerts in the park, book fairs, farmers markets, winter wonderland, octoberfest, and other community oriented events. Upper story terraces and roof decks within the residential blocks can offer a semi private experience of these assets, giving residents variety and choice in levels of interaction. Its important to retain flexibility in how these spaces are used. To what degree these interconnected spaces are oriented toward residents, locals, and visitors is an open question. The key is to work closely with the community to assure a variety of events appeal to different interest groups, and refine the offering over time. 1.3 PLANNING PRINCIPLES 12 THE GALAND 7.a Packet Pg. 65 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) The project can have a catalytic effect in how downtown functions; in a number of ways: • The interaction between providing new creative office, the renovation of the Woolworth building, a major new hotel, health club, and significant food and beverage uses including a food hall creates a ‘there’ for creative and innovative companies to consider downtown as a new home. • The creation of unique places, where people want to gather, including the paseos, fountain square, the town green, residential courts, and high quality street corridors, will attract people (residents, workers, commuters, neighbors, and visitors) to gather and spend time. • Reestablishing the historic street and block pattern of downtown while creating wide, high quality sidewalks will make the project ‘porous’ and easy to walk into and make connections to other downtown assets nearby. • Adaptive reuse of the Woolworth building and strong pedestrian linkages to the theater district will strengthen existing district assets. • The urban scale, and true vertical integration of mixed uses will create a great diversity of user behaviors and activities throughout the day and into the night. • The diversity of housing types and affordability will promote social mixing and human interest in an authentic way. /BECOME A CATALYST FOR THE FUTURE REVITALIZATION OF DOWNTOWN SAN BERNARDINO 1.3 PLANNING PRINCIPLES 1301 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 04 TRANSACTION TERM & CONDITIONS02 SITE DEVELOPMENT 7.a Packet Pg. 66 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) The promotion of transit usage is a goal identified in the RFP and the project contributes in the following ways: • Block structure: the project reestablishes the 600’ x 600’ urban grid of the historic core, and further breaks the blocks down with a network of paths, alleys, paseos, and mid-block connections that improve the pedestrian connectivity of the project area, especially north and south along F street, leading to the metrolink station, and east/west along 3rd street, leading to the sbX bus corridor. • Bike Hub: the development anticipates integrating a bike hub within the project area, offering bike share as well as lockers, rental, and repair. • Shared parking: integrated within each block is some component of shared parking within concealed structures. Each of these blocks will be managed by an app that provides real-time information about where to park in the district. • Ride share: significant drop off areas are incorporated into key activity clusters within the development, including the town green west, town green east/fountain square, and 3rd and E streets. • Metrolink / sbX connections: wide tree lined sidewalks combined with app based and traditional wayfinding tools will provide information about transit connections nearby at the perimeter of the project area. The potential exists for a public / private shuttle service that serves the project area and other population centers in downtown. /ESTABLISH A TRANSIT-ORIENTED COMMUNITY EMBODYING WALKABILITY AND ACCESSIBILITY THROUGH SUSTAINABLE PRACTICE 1.3 PLANNING PRINCIPLES 14 THE GALAND 7.a Packet Pg. 67 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) /ENSURE THE FLEXIBILITY OF THE PLAN TO MEET THE FUTURE MARKET DEMANDS The plan is set up to accommodate changes in market demand. • Residential diversity: the plan anticipates accommodation of a variety of housing typologies as the market matures in San Bernardino. As one block of housing is phased into the project, we will reassess the residential mix and rebalance it as appropriate in terms of density, product type, affordability, and relationship to jobs in the area • Phasing; depending on market demand, the plan can accommodate any number of scenarios from early phases heavy on commercial to residential to some mix of uses by phase. We can work with Community Development to strategize how to work together to accommodate pairing city investment with private development response. • Open space; shared spaces within the plan can be phased in as needed depending on community need and city commitments to cost sharing • Community amenities and programs: working in conjunction with city commitments, programs can be right sized and timed to meet community need 1.3 PLANNING PRINCIPLES 1501 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 04 TRANSACTION TERM & CONDITIONS02 SITE DEVELOPMENT 7.a Packet Pg. 68 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 1.4 PLACE MAKING CITY OF SAN BERNARDINO San Bernardino is one of the Inland Empire's anchor cities maintaining Its early nineteenth century history as the destination for new settlers and businesses to the region. Downtown San Bernardino is home to many City and County government agencies as well as the City's central business district, entertainment district, parks, university, and transit center. It is also home to multiple (and the only) diplomatic missions for the Inland Empire such as Guatemala and Mexico. Like many American cities, San Bernardino has experienced changing economic cycles that have shaped the current conditions of its downtown area. The City has been developing strategies and seeking opportunities to revitalize its downtown, including adopting the Downtown Core Vision & Action Plan in 2009 as a guide and a road map for the future revitalization and redevelopment. CAROUSEL MALL Carousel Mall, a 43-acre property, is strategically located in the historic heart of Downtown San Bernardino. In 1972, the mall opened its doors as the Central City Mall, and it was later re-branded as the Carousel Mall in 1980s. However, after 45 years of operations, the Carousel Mall closed its doors to the public in 2017. This action has created a new and exciting opportunity for growth and development in the historic core of San Bernardino. THE GALAND As the City of San Bernardino was once the frontier to those coming west to Southern California, The Galand, the proposed new development at the Carousel Mall site, is envisioned as the new frontier to this gateway city. It will usher in a new urban experience in San Bernardino, a place where the City greets residents and visitors in a dynamic environment that is resilient, blending work, live, and play. The Galand will bring approximate 2,252,550 square feet of mixed-use development including 1,875 units of multi-family residences, 38,800 square feet of retail, 54,800 square feet of food and beverage, 24,000 square feet of entertainment uses, a 40,000 square feet fitness center, two office buildings of 202,000 square feet in total and a 150-key boutique hotel and a 150-unit condotel sharing amenities in the same building. Over 8,000 square feet of space in the renovated Mall building is dedicated to community use which is connected to an outdoor community garden. The focal point of the project is a vibrant two-acre green open space, Galand Green, attracting residents and visitors with shaded seating areas, a great lawn, landscaped pathways, F Stage, and Mist Plaza. It is programmed with events all year long such as holiday celebrations, summer movie nights, concerts, and a farmers’ market. 16 THE GALAND 7.a Packet Pg. 69 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) G ST C O N N E C T I O N F ST C O N N E C T I O N 3RD S ST 3RD N S T 4TH ST 2ND ST RIALTO ST COURT S T E S T F ST G ST GALAN D G R E E N REU S E MO R E BUS I N E S S MO R E BUS I N E S S REU S E FUT U R E FUT U R E NEW NEW NEW FUTURE OPEN E S T R E V I T A L I Z A T I O N MAJO R C O R R I D O R T O T R A N S I T C E N T E R SB X B R T L I N E $3RD STR E E T A XI S E X T E N SI O N CO N N E C T I O N DESIGN CONCEPTS WITH RESPECT TO CONTEXT Response to the context and integration into the community Is essential for the success of the development. The Galand is located on the 3rd Street axis and west of Civic Center, a county and city employment center, providing housing, office, retail, food service, entertainment venues, and hospitality to transform the current downtown development structure to a 24/7 active zone. These new uses complement the local retail and food service with fine dining and community serving retail. The site development strategically extends the 3rd street axis connecting Meadow Brook Park at the east end of Downtown and Galand Green, the heart of The Galand, at the west end. Many amenities are strategically located along the 3rd Street axis and include the Community Space inside the renovated Carousel Mall building, Food Hall, Galand Hotel, and Fitness Center all of which make the 3rd Street axis lively and provide new opportunities for the Harris Building and the Enterprise Building. The development re-establishes the historic street system and completes the city street grid by extending F Street and G Street into the site, strengthening connections to and from the downtown. Further integration into the City is created by revitalizing E street, the main street of City of San Bernardino, where many historic buildings are located. Buildings of historic significance within the site are to be preserved and restored to maintain the historic fabric of the Downtown. Reminiscent of the City past, the east end of Carousel Mall is restored as an open air paseo with the Harris Building and the Enterprise Building framing the east entry plaza and increasing their value. The Woolworth Building at the corner of E Street and 4th Street is adapted into office use and integrated with the new office development. The Galand Hotel and Carousel Place Residences bring more foot traffic to E Street creating a more vital and active neighborhood. These connections, with enhanced streetscape and pedestrian connections to the sbX station, reactivate E Street. Also on E Street and north of The Galand is Theater Square, the home of a historical California theater and Regal Cinema Stadium. Theater Square drives regional foot traffic and anchors the Paseo's commercial development, while the Paseo provides complementary food service and amenities for guests visiting Theater Square. The relationship is reinforced with a strong pedestrian connection between Theater Square and The Paseo. The sbX Bus Rapid Transit line runs on a dedicated lane along E Street. It traverses a 15.7-mile route from California State University San Bernardino to Loma Linda University Medical Center. Pedestrian connections are enhanced at the sbX station providing commuters with easy access to the Civic Center, The Galand Hotel, and other onsite amenities. The Transit Center, about 1/4 mile south of the property, is served by Metrolink trains and various bus services including the sbX Bus Rapid Transit. Multi-purpose trails for pedestrian and bicycle users are proposed along the major streets around and inside the property and are planned to be extended along F Street to the Transit Center. The proximity to public transit creates the opportunity for transit-oriented development, which is realized by The Galand vision. The Galand is a walkable mixed-use development adjacent to transit with high density and low parking demand. 1701 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 04 TRANSACTION TERM & CONDITIONS02 SITE DEVELOPMENT 7.a Packet Pg. 70 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) DISTINCT DISTRICTS Among the five districts of The Galand, Galand Green is the core surrounded by The Paseo, Carousel Place, Cal Vida North, Cal Vida South, and Galand West. They are connected to each other by roadways, pedestrian paths, and green linkages. The Paseo Located at the northeast corner of the site, The Paseo is a 620,000 square feet lively mixed-use district extending the commercial opportunities of Court Street and Theater Square. The focus of the district is the paseo which is populated with kiosks, water fountains, trees, planters, and various seating areas. Decorated with string lights, the paseo brings a desirable ambiance for people lingering in shops, cafes, restaurants, and entertainment venues at street level. There are many specific uses which complement the paseo, activate the district, and create a special destination: Outdoor dinners can enjoy the social atmosphere while tasting local, fresh cuisine. The fitness center on the 2nd floor includes an outdoor exercise terrace, showcasing the activities available. The historic Woolworth building is adaptively reused as office and integrated with additional new office development. A new class A office building erected on 4th street provides retail and food and beverage service at the street level. Roof terraces are located at both office buildings, providing outdoor green space and seating area for office workers and used as rentable event space catered by the food services on paseo. The office buildings frame the north entry of the paseo, while the 12-story Galand Hotel becomes the focal point of view on the pedestrian corridors from Theater Square. Located at the terminus of Court Street, the hotel provides additional needed guestrooms for Downtown San Bernardino. It includes a high-end boutique hotel with 150 keys and a 150-unit condotel. They will share common amenities such as food service, a business center, meeting rooms, sky bar GALAND WEST CAL VIDA NORTH THE PASEO CAL VIDA SOUTH GALAND GREEN CAROUSEL PLACE and pool. The pool occupies the roof top terrace where guests can enjoy a 360-degree view of the city and mountains beyond. Carousel Place At the south end of The Paseo is Fountain Plaza, the intersection of The Paseo district and Carousel Place. Carousel Place retains its historical charm. Most of the Carousel Mall is to be demolished but the east end entry and about 16,000 square feet of space next to the Harris Building are renovated for community and commercial uses. The existing Mall corridor is open to the sky with the arches rehabilitated for exterior conditions. The 3rd Street Pedestrian Bridge between the Civic Center and the 2nd floor entry platform of the Mall are preserved to provide a direct connection between the Civic Center and property with new escalators and stairs connecting to Carousel Court. The East Entry Plaza, framed by the Harris and Enterprise Buildings, is to be renovated and furnished with outdoor seating, tables, and planters. The Mall building doors facing the East Entry Plaza will be removed and the arches will be repainted to provide a fresh welcome to the public. A new carousel is the icon of Carousel Court, reminiscent of the old carousel in the mall. At the west end of Carousel Court and south side of Fountain Plaza is the new Food Hall offering an assortment of unique foods and beverages. An urban grocery store in the renovated Mall space is integrated into the Food Hall, promoting options for healthy dinning and tasting. 8,000 square feet of the renovated Mall is a Community Space with an outdoor community garden providing event space, shaded seating, resting places, and a basketball court. The reactivated Carousel Court will attract new businesses to the Enterprise Building and Harris Building both of which are well integrated into the overall development and share amenities such as parking, an entry plaza, and back- of-house service. The old Mall passageway facing south is renovated to connect with the parking structure. At the south of the parking structure and community garden is Carousel Place Residence with 222 multi-family units and lush outdoor gardens. In the future, if the market changes, the site of the Carousel Place Residence can be developed into an office complex and/or a mixed-use project, and it can share parking and other amenities in the District. Cal Vida North Cal Vida North is a lively residential oriented mixed-use district. Featuring 629 modern new residences, the two residential buildings offer studio, one- bedroom, and two-bedroom units. Among them are 23 live/work units facing Galand Green. 3,000 square feet of shops and cafe serve the residents. Outdoor gardens, lawns, playground, and rooftop terrace provide residents with recreation and relaxation amenities and provide the location for the residents’ community activities. Cal Vida South The twin to Cal Vida North, Cal Vida South features 600 modern new residences including 23 live/work units with 3,000 square feet of shops and cafes facing Galand Green. Outdoor amenities include a quiet courtyard, playground, half basketball court, shaded plaza and a strolling garden which stretches from E Street to G Street along 2nd Street. The well-appointed community garden at G Drive and 2nd Street includes an entry fountain, great lawn and community farms. Galand West Located on a triangle site at the west part of The Galand, Galand West provides 424-units of high-quality urban living and 7,000 square feet of shops and restaurants located at the street corners. It is a contemporary-styled, four- story building that wraps a four-story parking structure with rooftop terrace and solar panels. The buildings form two landscaped courtyards with water features and shaded seating area. The major pedestrian entry is at the east facing Galand Green. Various outdoor open spaces are along the perimeter of the buildings including the east entry gardens, playground, strolling gardens, and a dog park. A community garden at the north end of District is anchored by a fountain with lawns and seating area adjacent to the nearby cafe. Galand Green Galand Green, the heart of The Galand, is a green park celebrating the revitalization of Downtown San Bernardino. Its plan is simple, elegant, and flexible enough to accommodate a wide variety of community uses. Linear allees of flowering trees line the promenades on the south and north sides of the central open space, connecting the park's many outdoor rooms. On the east side of Galand Green is Kiosk Plaza with ample seating around two 900-squarefoot cafes. At the center of Galand Green is the 28,300 square feet event lawn overlooked by the iconic F Stage at the west, an elegant performance pavilion at the terminus of the 3rd Street axis. Between F Stage and the Event Lawn is Mist Plaza, an interactive water feature that cools the area and makes it more comfortable for social activities during the hot summers. When the water feature is turned off, the plaza acts as a small event space. A grove of trees at the west of F Stage marks the west entry of Galand Green. Casual groupings of site furniture are scattered underneath the canopy which filters the sunlight down and creates changes of light and shadow. Galand Green attracts a vibrant, diverse crowd from downtown and across San Bernardino. The park is programmed all year long with holiday celebrations, summer concert, movie night, and a rotating menu of the region's popular food trucks. Galand Green itself becomes a destination with a strong sense of place and community. 18 THE GALAND 7.a Packet Pg. 71 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 2,252,550 SQFT MIXED-USE 3.37 ACRES OF DESIGNATED PUBLIC OPEN SPACE ± $800 M TOTAL INVESTMENT $15.1 M STATE & LOCAL TAX REVENUE 8,000+ SQFT OF INDOOR COMMUNITY SPACE 562 PERMANENT JOBS The Galand offers a variety of uses, networks, spaces, and amenities that will be leveraged and enjoyed by everyone. It will provide a true hub of mixed use activity in a downtown that has suffered for a long time from a lack of development interest. It will become a destination in the heart of the gateway city. A CATALYST FOR CHANGE The Galand proposal will stimulate the development in the neighboring parcels as well as Downtown of San Bernardino. By creating a true mixed use hub in downtown there will be daytime workers, visitors staying at the hotel and dining in the restaurants and frequenting shops, and locals living in residential buildings, the overall development will promote the economic vitality of the downtown as a whole; it will generate activity, promote pedestrian flow, and improve safety and multimodal accessibility throughout downtown. CLASSIC URBANISM The project retains portion of the Carousel Mall, adaptively reuses the Woolworth Building, restores the east entry plaza, installs a new carousel and fountains that will reestablish the site as an important hub of activity in downtown. The various events and activities occurring at Gala Green, the community center and other open spaces will promote arts, culture and social interaction and reestablish downtown San Bernardino as the active heart of the city and region. A GREEN HUB The Galand's open space creates linkages to surrounding neighborhoods, creates energized hubs of activity, and replaces concrete parking lots with much needed diverse green spaces; from green parks and plazas, to semi private courts and upper story terraces with views. High quality streetscapes will create significant green buffers and provide trails and gathering areas that can be enjoyed by workers, residents, and visitors. AUTHENTICITY THROUGH DIVERSITY The proposed plan is comprised of cohesive but architecturally distinct structures influenced by the built character of the existing architecture and streetscape. The projects assemblage of buildings will become a collection of compatible styles, and human scaled massing, creating an authentic neigh- borhood that has evolved over time. A MODEL OF RESILIENCE The Galand sets a region-wide example for sustainable development with best practices of community planning and architectural design. The Galand is a transit oriented-development, providing connected pedestrian and bike paths to sbX station and the Metrolink Transit Center with shuttle services to various community locations beyond the site. 1.5 WHY THE GALAND 30+ ANNUAL EVENTS 1,875 UNITS COMMUNITY BENEFITS The proposed plan is economically feasible and financeable, and ensures economic viability of each phase as it is delivered. The Galand will yield significant benefits for the City of San Bernardino, including: • 2,252,550 square feet of mixed-use space • 1,875 new residential units • 8,000 square feet of Community Space • A total of more than 3.37 acres of open space • 30+ annual events • $753,000,000 - 825,000,000 total investment in San Bernardino • $15.1 million state and local tax revenue • 562 permanent jobs 1901 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 04 TRANSACTION TERM & CONDITIONS02 SITE DEVELOPMENT 7.a Packet Pg. 72 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) SITE DEVELOP-MENT. Envisioning what the site can be by comprehensive context studies, site analysis, concept exploration. program testing, and physical space making. 7.a Packet Pg. 73 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) SAN BERNARDINO Riverside Palm Springs SAN BERNARDINO COUNTY RIVERSIDE COUNTYORANGE COUNTY LOS ANGELES COUNTY Ontario Corona IrvineCosta Mesa Long Beach Santa Monica Pasadena Downtown Los Angeles Glendale Anaheim 10 215 15 210 5405 101 110 710 605 SBIA UNIVERSITY VERDEMONT TIPPECANOE DOWNTOWN SANTA FE DEPOT SITE COMMUNITYHOSPITAL HIGHLAND AVE EASTERN RECREATION VILLAGEE STMT VERNONF ST2.1 CITY OF SAN BERNARDINO /HUB OF THE INLAND EMPIRE CITY OF SAN BERNARDINO STRATEGIC AREA MAP 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 2104 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 74 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) FWY 215 2ND ST 3RD ST ARROWHEAD AVE 4TH ST W COURT ST RIALTO AVE 5TH ST E STH STG STG STF STF STRESIDENTIAL RESIDEN- TIAL BNSF 2ND STREET CORRIDOR CIVIC CENTER MEADOW- BROOK PARK THEATER SQUARE SAN M ANUEL STADIUM E STREET CORRIDORMETROLINK STATION TRANSIT CENTER SITE 600 Ft0 The project site is located within the Central Business District of Downtown San Bernardino. It is bounded by two major city street corridors, E Street and 2nd Street. Theater Square, consisting of the California Theater and Regal Cinema Stadium 14, is located at the north of the project site. The Transit Center is about 1/4 miles at the south of the site. There are commercial parcels at the northwest, west and south sides of the property. At the west side of I-215 Freeway are single family residential neighborhoods and the BNSF rail yard. 2.2 SITE ANALYSIS /NEIGHBORHOOD Education Park Seccombe Lake Park PROJECT SITE Downtown San Bernardino Central BusinessDistrict Arrowhead CreditUnion Ball Park Meadowbrook Park County Complex Baseline Street 9th Street 8th Street 7th Street H StreetG StreetE StreetF StreetD StreetArrowhead AvenueSierra WayWaterman Avenue5th Street 4th Street 3rd Street 2nd Street 2nd Street Rialto Avenue To Santa Fe Depot Mill Street Court Street 215 Study Area Main Street Overlay District 22 THE GALAND 7.a Packet Pg. 75 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) FWY 215 2ND ST 3RD ST ARROWHEAD AVE 4TH ST W COURT ST RIALTO AVE 5TH ST E STH STG STG STF STF STSITESITE 600 Ft0 2.2 SITE ANALYSIS /LAND USE RESIDENTIAL COMMERCIAL CIVIC OFFICE INSTITUTIONAL INDUSTRIAL HOTEL/MOTEL OPEN SPACE TRANSIT Civic and office uses are located at the east side of the project site. Commercial uses are located around the north, west and south sides. A few residential developments, including apartments, senior housing, and single- family dwellings, are located north of the site and along 5th Street. 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 2304 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 76 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) METROLINK STATION TRANSIT CENTERFRWY ACCESS FRWY ACCESS ARROWHEAD AVE 2ND ST 3RD ST 4TH ST W COURT ST RIALTO AVE 5TH ST E STH STG STG STF STF STPEDESTRIAN BRIDGESITE 600 Ft0 2.2 SITE ANALYSIS /CIRCULATION & ACCESS The project site has convenient access from the I-215 Freeway at 4th Street and 2nd Street. Major thoroughfares, E Street, 2nd Street, H/G Street, and 4th Street, bound the site. Other city streets leading to the site include F Street, G Street, and W Court Street. Currently, vehicular entrances exist on all sides of the site. The sidewalks on the surrounding streets are narrow and in poor condition. There is a pedestrian bridge connecting Civic Center and Carousel Mall above E Street and the east entry plaza. Improvements to both will enhance walkability and connections at the project. 24 THE GALAND 7.a Packet Pg. 77 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) METROLINK STATION TRANSIT CENTER ARROWHEAD AVE 2ND ST 3RD ST 4TH ST W COURT ST RIALTO AVE 5TH ST E STH STG STG STF STF ST1210 3/4 8 215 290 METROLINK METROLINK 1/4 MI 1/4 MICOURT ST STATIONSAN BERNARDINO DOWNTOWN STATION SAN BERNARDINO DEPOT STATION TO SITE 600 Ft0 2.2 SITE ANALYSIS /TRANSIT The project site is well served by public transit. It is located within a 1/4 mile of the Transit Center served by Metrolink trains and various bus services, including the sbX Bus Rapid Transit Line. There is also a sbX station on E Street near the Court Street intersection. Additional bus services are provided on the surrounding streets. Approximately 3/4 miles west of the site is San Bernardino Santa Fe Depot, with an Amtrak and two Metrolink lines. 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 2504 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 78 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) ST. BERNARDINE’S CHURCH AMERICAN TRUST BUILDING WOOLWORTH BUILDING ENTERPRISE BUILDING CALTRANS HERITAGE BUILDING MOLLY”S CAFE CITY HALL HARRIS BUILDING ASU FOX THEATER SAN BERNARDINO COUNTY SUPERIOR COURT SAN BERNARDINO COUNTY SUPERIOR COURT BOA BUILDING IRS BUILDING UNITED STATES POSTAL SERVICE SAN BERNARDINO COUNTY GOVERN- MENT CENTER METROLINK STATION CALIFORNIA THEATRE OF THE PERFORMING ARTS SITE 600 Ft0 CALIFORNIA THEATER OF THE PERFORMANCE ART 2.2 SITE ANALYSIS /HISTORICAL/LANDMARK BUILDINGS WOOLWORTH BUILDING AMERICAN TRUST BUILDING CITY HALLCOUNTY GOVERNMENT BUILDING ASU FOX THEATER HARRIS BUILDING IRS BUILDINGUS POSTAL SERVICE SUPERIOR COURT NEW SUPERIOR COURT BUILDINGCALTRANSUS POSTAL SERVICEHERITAGE BUILDING ENTERPRISE BUILDING 26 THE GALAND 7.a Packet Pg. 79 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) ARROWHEAD AVE 2ND ST 3RD ST 4TH ST W COURT ST RIALTO AVE 5TH ST E STH STG STG STF STF STPPPP P P P P P P 600 Ft0F STP 2.2 SITE ANALYSIS /LOCAL AMENITIES PUBLIC PARKING GAS STATION THEATER CINEMA GENERAL RETAIL STORE FOOD SERVICE CAFE CAR DEALER/SERVICE FITNESS HOTEL/MOTEL BANK INSURANCE DENTAL SERVICE LIBRARY SCHOOL CHURCH POST OFFICE GOVERNMENT 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 2704 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 80 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) ARROWHEAD AVE 2ND ST 2ND ST 3RD ST 4TH ST W COURT ST RIALTO AVE 5TH ST E STH STG STG STF STF ST600 Ft0 06 2.2 SITE ANALYSIS /EXISTING SITE CONDITIONS The currently closed Carousel Mall is located east of the site and surrounded by parking. The interior of the mall was not accessible at the time of the visit but Photos 13 and 14, obtained from the internet, show the interiors of the Mall. There are two closed stores are along 4th Street. Potential assets include the three historical buildings along E Street, the Woolworth building, the Enterprise Building, and the Harris Building. A small plaza with a fountain is located between the Harris Building and the Enterprise Building with the pedestrian bridge. The existing site conditions display the need for new dynamic development. 01 01 02 02 03 03 05 05 06 07 07 08 08 09 09 10 10 13 13 14 14 11 1112 12 04 04 28 THE GALAND 7.a Packet Pg. 81 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) ARROWHEAD AVE 2ND ST 3RD ST 4TH ST W COURT ST RIALTO AVE 5TH ST E STH STG STG STF STF ST600 Ft0 01 02 02 03 20 20 20 20 05 06 07 08 09 09 1013 14 14 1515 15 15 15 15 16 16 17 11 1212 12 03 04 18 2.2 SITE ANALYSIS /OPPORTUNITIES & CONSTRAINTS OPPORTUNITIES 01. Freeway visibility 02. Freeway access 03. Focal point/landmark opportunities 04. Gateway opportunities 05. Connection to Transit Center 06. Connection to Civic Center 07. Connection to Theater Square 08. Theater Square as an anchor 09. Engagement with Harris Building and Enterprise Building 10. View corridor to City Hall Building 11. Extension of Court Street 12. Street/Grid into project site and view corridor opportunities 13. Representation of Carousel Mall pedestrian court 14. Reuse the existing architectural details 15. Intersection improvement 16. View to mountains beyond CONSTRAINTS 17. Ground elevation change on site 18. Portion of Harris Building blocks the connection/view corridor 19. Heavy traffic on 2nd Street 20. Undesirable views to the street frontage of neighboring properties THEATER SQUARE CIVIC CENTER TRANSIT CENTER 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 2904 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 82 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 3RD ST R E E T A XI S E X T E N SI O N 2.3 DESIGN CONCEPT /3RD STREET AXIS EXTENSION 30 THE GALAND 7.a Packet Pg. 83 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) G ST C O N N E C T I O N F ST C O N N E C T I O N 3RD S S T 3RD N S T 4TH ST 2ND ST RIALTO ST COURT S T E S T F ST G ST 2.3 DESIGN CONCEPT /CITY GRIDS CONNECTION 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 3104 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 84 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) GALAN D G R E E N 2.3 DESIGN CONCEPT /GALAND GREEN SYNERGY 32 THE GALAND 7.a Packet Pg. 85 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) REU S E MO R E BUS I N E S S MO R E BUS I N E S S REU S E FUT U R E FUT U R E NEW NEW NEW FUTURE OPEN E S T R E V I T A L I Z A T I O N 2.3 DESIGN CONCEPT /E STREET ACTIVATION & HISTORIC BUILDING 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 3304 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 86 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) CO N N E C T I O N 2.3 DESIGN CONCEPT /THEATER SQUARE ENGAGEMENT 34 THE GALAND 7.a Packet Pg. 87 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) MAJ O R C O R R I D O R T O T R A N S I T C E N T E R SB X B R T L I N E 2.3 DESIGN CONCEPT /CONNECTION TO TRANSIT CENTER & SBX STATION 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 3504 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 88 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) $ 2.3 DESIGN CONCEPT /BLENDED WORK, LIVE & PLAY 36 THE GALAND 7.a Packet Pg. 89 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 2.4 CONCEPTUAL MASTER PLAN 7.a Packet Pg. 90 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 2.4 CONCEPTUAL MASTER PLAN 38 THE GALAND 7.a Packet Pg. 91 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 2.4 CONCEPTUAL MASTER PLAN I - 2154TH ST COURT ST 3RD N ST 3RD S ST 2ND ST F STF STG STG STG DRF STG STH STE STE STD ST200 Ft0 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 3904 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 92 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 2.4 CONCEPTUAL MASTER PLAN 40 THE GALAND 7.a Packet Pg. 93 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) G STH STF STG STF ST4TH ST COURTST 3RD N ST 3RD S ST 2ND ST G S T E ST100’0 200’ 1”=200’N 200 Ft0 /LAND USE 2.5 MASTER PLAN FRAMEWORK R-1 3RD N ST 3RD S ST R-3R-2 C-1 C-3 C-2 C-4 O-2 F STG DRO-1 R-6 R-5R-4 PARCEL LAND USE BUILDING USE SITE AREA (ACRES) R-1 MIXED USE RESIDENTIAL + RETAIL/F&B 5.66 R-2 MIXED USE 3.65 R-3 MIXED USE 2.85 R-4 MIXED USE 3.00 R-5 MIXED USE 3.60 R-6 MIXED USE 3.29 C-1 MIXED USE COMMERCIAL 3.27 C-2 OFFICE 0.87 C-3 MIXED USE HOTEL+ F&B 2.28 C-4 MIXED USE COMMERCIAL 3.65 O-1 OPEN SPACE 1.39 O-2 OPEN SPACE 1.98 F ST R.O.W.2.52 G DR R.O.W.1.87 3RD S/N ST R.O.W.1.58 OTHERS R.O.W.0.75 TOTAL 42.20 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 4104 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 94 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) G STH STF STG STF ST4TH ST COURTST 3RD N ST 3RD S ST 2ND ST G S T E ST100’0 200’ 1”=200’N 200 Ft0INTERNAL STREET CITY THRU STREET SURROUNDING STREET /CIRCULATION - ROAD 2.5 MASTER PLAN FRAMEWORK F Street and G Street are extended into the site to complete the city street grid and increase connectivity to, from and within the site. 3rd N Street and 3rd S Street parallel to the 3rd street axis provide the access to Galand Green. 42 THE GALAND 7.a Packet Pg. 95 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) G STH STF STG STF ST4TH ST COURTST 3RD N ST 3RD S ST 2ND ST G S T E ST100’0 200’ 1”=200’N 200 Ft06’ Landscape6’ Landscape5’ Bike Path5’ Bike Path7’ PathwayParcel LineParcel Line7’ Pathway12’ Driveway12’ Turning Lane12’ Driveway8’ Parking8’ ParkingR.O.W. 88’10’ Pathway/Landscape10’ Pathway/LandscapeParcel LineParcel Line11’ Driveway11’ Driveway8’ Parking16’ ParkingR.O.W. 66’4’ Median6’ Landscape6’ Landscape5’ Bike Path5’ Bike Path7’ PathwayParcel LineParcel Line7’ Pathway12’ Driveway12’ Driveway12’ Driveway12’ DrivewayR.O.W. 88’6’ Landscape6’ Landscape5’ Bike Path5’ Bike Path7’ PathwayParcel LineParcel Line7’ Pathway12’ Driveway12’ Turning Lane12’ Driveway8’ Parking8’ ParkingR.O.W. 88’10’ Pathway/Landscape10’ Pathway/LandscapeParcel LineParcel Line11’ Driveway11’ Driveway8’ Parking16’ ParkingR.O.W. 66’4’ Median6’ Landscape6’ Landscape5’ Bike Path5’ Bike Path7’ PathwayParcel LineParcel Line7’ Pathway12’ Driveway12’ Driveway12’ Driveway12’ DrivewayR.O.W. 88’6’ Landscape6’ Landscape5’ Bike Path5’ Bike Path7’ PathwayParcel LineParcel Line7’ Pathway12’ Driveway12’ Turning Lane12’ Driveway8’ Parking8’ ParkingR.O.W. 88’10’ Pathway/Landscape10’ Pathway/LandscapeParcel LineParcel Line11’ Driveway11’ Driveway8’ Parking16’ ParkingR.O.W. 66’4’ Median6’ Landscape6’ Landscape5’ Bike Path5’ Bike Path7’ PathwayParcel LineParcel Line7’ Pathway12’ Driveway12’ Driveway12’ Driveway12’ DrivewayR.O.W. 88’ SECTION A AAB C BB C CC SECTION B SECTION C /CIRCULATION - ROAD 2.5 MASTER PLAN FRAMEWORK 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 4304 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 96 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) G STH STF STG STF ST4TH ST COURTST 3RD N ST 3RD S ST 2ND ST G S T E ST100’0 200’ 1”=200’N 200 Ft0 COMMERCIAL PARKING STRUCTURE RESIDENTIAL PARKING STRUCTURE STREET PARKING STREET PARKING STRUCTURE ENTRY /CIRCULATION - PARKING 2.5 MASTER PLAN FRAMEWORK PARKING TYPE COUNT (SPACES) RESIDENTIAL PARKING 2,501 P-R1 PARKING STRUCTURE 636 P-R2 PARKING STRUCTURE 460 P-R3 PARKING STRUCTURE 324 P-R4 PARKING STRUCTURE 319 P-R5 PARKING STRUCTURE 429 P-R6 PARKING STRUCTURE 333 COMMERCIAL PARKING 1,048 P-C1 PARKING STRUCTURE 400 P-C3 PARKING STRUCTURE 300 P-C4 PARKING STRUCTURE 348 RESIDENTIAL/COMMERCIAL PARKING 163 F ST STREET PARKING 36 G DR STREET PARKING 25 3RD N/S ST STREET PARKING 102 TOTAL 3,712 P-R1 3RD N ST 3RD S ST P-R3 P-R2 P-C1 P-C3 P-C4F STG DRP-R6P-R5 P-R4 44 THE GALAND 7.a Packet Pg. 97 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) G STH STF STG STF ST4TH ST COURTST 3RD N ST 3RD S ST 2ND ST G S T E ST100’0 200’ 1”=200’N 200 Ft0 PASEO / PEDESTRIAN STREET PEDESTRIAN BRIDGE MULTI-PURPOSE PATHWAY (PEDESTRIAN + BIKE) SHARED BIKE LANE SIDEWALK/PATHWAY/CROSSWALK NEIGHBORHOOD RECREATIONAL PATH CENTRAL OPEN SPACE (FREE FLOW) PLAZA (FREE FLOW) /CIRCULATION - PEDESTRIAN & BIKE PATH 2.5 MASTER PLAN FRAMEWORK The experience of residents and visitors is enhanced by shaded and widened pathways designed for pedestrian comfort interspersed with commercial paseos and carefully located crosswalks. Multi-purpose pathways dedicated for pedestrian and bicycle riders are proposed along F Street, G Drive, G Street, and 2nd Street. Shared bike lanes are located on 3rd S Street and 3rd N Street which are designated as slow traffic streets. 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 4504 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 98 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) G STH STF STG STF ST4TH ST COURTST 3RD N ST 3RD S ST 2ND ST G S T E ST100’0 200’ 1”=200’N 200 Ft0 CENTRAL OPEN SPACE MAJOR PLAZA PASEO / PEDESTRIAN COMMERCIAL STREET MAJOR RESIDENTIAL OPEN SPACE ROOF TERRACE MAJOR NEIGHBORHOOD GARDENS GATEWAY LANDSCAPE TREATMENT ENHANCE STREET SCAPE CONNECTIVITY /OPEN SPACE 2.5 MASTER PLAN FRAMEWORK Various sizes and types of open space are developed to link each other and connect with open space in the Civic Center. 46 THE GALAND 7.a Packet Pg. 99 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) G STH STF STG STF ST4TH ST COURTST 3RD N ST 3RD S ST 2ND ST G S T E ST100’0 200’ 1”=200’N 200 Ft0 CITY STREET STREET-FRONTAGE INTERNAL STREET STREET-FRONTAGE FOCAL POINT OPPORTUNITIES FOCAL POINT BUILDING IN DISTANCE MAJOR VIEWPOINT @ PLAZA - 3600 VIEW TO PASEO, FOOD HALL & TOWN COMMONS MAJOR VIEWPOINT AT TOWN COMMONS - 3600 VIEW TO SURROUNDING NEIGHBORHOOD MAJOR VIEWPOINT AT PLATFORM - VIEW TO CITY HALL AND TOWN COMMONS MAJOR VIEW AT ROOF TERRACE/GARDEN - 3600 VIEW TO GALAND, CITY, AND MOUNTAIN BEYOND TO CITY HALL /VIEW ANALYSIS 2.5 MASTER PLAN FRAMEWORK TO REGAL CINEMA STADIUM 14 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 4704 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 100 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 2.5 MASTER PLAN FRAMEWORK /DISTRICTS CAL VIDA SOUTH CAL VIDA NORTH CAROUSEL PLACE GALAND WEST THE PASEO GALAND GREEN 4TH ST 2ND ST F STG STG STE ST48 THE GALAND 7.a Packet Pg. 101 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 01 01 01 01 02 02 02 03 21 05 06 07 07 07 07 07 07 08 09 09 10 13 13 14 11 11 11 12 12 12 17 15 18 16 20 21 19 04 05 2.6 DISTRICT - THE PASEO /SITE PLAN Located at the northeast corner of the site, The Paseo is a 620,000 square feet lively mixed-use district extending the commercial opportunities of Court Street and Theater Square. The focus of the district is the paseo which is populated with kiosks, water fountains, trees, planters, and various seating areas. Decorated with string lights, the paseo brings a desirable ambiance for people lingering in shops, cafes, restaurants, and entertainment venues at street level. There are many specific uses which complement the paseo, activate the district, and create a special destination: Outdoor dinners can enjoy the social atmosphere while tasting local, fresh cuisine. The fitness center on the 2nd floor includes an outdoor exercise terrace, showcasing the activities available. The historic Woolworth building is adaptively reused as office and integrated with additional new office development. A new class A office building erected on 4th street provides retail and food and beverage service at the street level. Roof terraces are located at both office buildings, providing outdoor green space and seating area for office workers and used as rentable event space catered by the food services on paseo. The office buildings frame the north entry of the paseo, while the 12-story Galand Hotel becomes the focal point of view on the pedestrian corridors from Theater Square. Located at the terminus of Court Street, the hotel provides additional needed guestrooms for Downtown San Bernardino. It includes a high-end boutique hotel with 150 keys and a 150-unit condotel. They will share common amenities such as food service, a business center, meeting rooms, sky bar and pool. The pool occupies the roof top terrace where guests can enjoy a 360-degree view of the city and mountains beyond. 01. Retail/F&B/Entertainment 02. Office 03. Fitness Center 04. Galand Hotel 05. The Paseo 06. Fountain Plaza 07. Roof Terrace 08. Pool Deck 09. Gardens 10. Multi-purpose Trail 11. Drop-off 12. Parking Entry 13. Service Entry 14. Enterprise Building 15. SbX Station 16. Theater Plaza 17. Food Hall/Grocery Store 18. Community Space 19. Carousel Court 20. Harris Building 21. 3rd Street Bridge SITE AREA 6.42 ACRES FAR 2.22 DENSITY TOTAL BUILDING AREA 620,000 SF 300 KEYS / UNITS RETAIL 20,800 SF FOOD & BEVERAGE 26,000 SF ENTERTAINMENT 24,000 SF FITNESS CENTER 40,000 SF OFFICE 202,000 SF HOTEL 307,200 SF - BOUTIQUE 150 KEYS - CONDOTEL 200 UNITS PARKING 700 SPACES 4TH ST COURT STE STF ST200 Ft0 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 4904 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 102 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) /ELEVATION 2.6 DISTRICT - THE PASEO OFFICE NORTH ELEVATION HOTEL NORTHWEST ELEVATION ±0.0 ±0.0 20.0 20.0 30.0 40.0 72.0 72.0 130.0 140.0 40 Ft0 40 Ft0 50 THE GALAND 7.a Packet Pg. 103 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) /IMAGERY - HEALTHY LIFESTYLE 2.6 DISTRICT - THE PASEO 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 5104 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 104 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) /IMAGERY - PASEO 2.6 DISTRICT - THE PASEO 52 THE GALAND 7.a Packet Pg. 105 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 7.a Packet Pg. 106 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 2.6 DISTRICT - THE PASEO /IMAGERY - HOSPITALITY + ENTERTAINMENT 54 THE GALAND 7.a Packet Pg. 107 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 7.a Packet Pg. 108 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 2.6 DISTRICT - THE PASEO /IMAGERY - OFFICE 56 THE GALAND 7.a Packet Pg. 109 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 7.a Packet Pg. 110 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 01 02 03 08 09 09 10 08 10 11 11 02 12 1212 12 Restore East Entry Plaza with enhanced paving, planters and seating areas and restore the fountain. The existing roof structure will be partially removed at the atrium to make 2nd Floor Platform brighter and more open. Carousel will be installed in the existing corridor which will be rebuilt as Carousel Court. Remove existing glass doors to attract visitors to the Pedestrian Bridge. The corridor will be open to the sky with the arches rehabilitated for exterior conditions. The stores will be converted to Community Space. . Passageway interior will be renovated between Food Hall, Grocery Store, and Community Space. The existing Passageway will be rehabilitated to connect the proposed parking structure. This portion of the existing mall is to be renovated into Food Hall with new roof and exterior facade. 2.7 DISTRICT - CAROUSEL PLACE /EXISTING CAROUSEL MALL REUSE E STCAROUSEL MALL REUSE OVERLAY 58 THE GALAND 7.a Packet Pg. 111 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 01 02 03 05 06 06 07 08 10 13 14 1215 16 16 20 20 19 2423 21 18 18 17 22 17 04 2.7 DISTRICT - CAROUSEL PLACE /SITE PLAN At the south end of The Paseo is Fountain Plaza, the intersection of Gala Paseo district and Carousel Place. Carousel Place retains its historical charm. Most of the Carousel Mall is to be demolished but the east end entry and about 16,000 square feet of space next to the Harris Building are renovated for community and commercial uses. The existing Mall corridor is open to the sky with the arches rehabilitated for exterior conditions. The 3rd Street Pedestrian Bridge between the Civic Center and the 2nd floor entry platform of the Mall are preserved to provide a direct connection between the Civic Center and property with new escalators and stairs connecting to Carousel Court. The East Entry Plaza, framed by the Harris and Enterprise Buildings, is to be renovated and furnished with outdoor seating, tables, and planters. The Mall building doors facing the East Entry Plaza will be removed and the arches will be repainted to provide a fresh welcome to the public. A new carousel is the icon of Carousel Court, reminiscent of the old carousel in the mall. At the west end of Carousel Court and south side of Fountain Plaza is the new Food Hall offering an assortment of unique foods and beverages. An urban grocery store in the renovated Mall space is integrated into the Food Hall, promoting options for healthy dinning and tasting. 8,000 square feet of the renovated Mall is a Community Space with an outdoor community garden providing event space, shaded seating, resting places, and a basketball court. The reactivated Carousel Court will attract new businesses to the Enterprise Building and Harris Building both of which are well integrated into the overall development and share amenities such as parking, an entry plaza, and back-of-house service. The old Mall passageway facing south is renovated to connect with the parking structure. At the south of the parking structure and community garden is Carousel Place Residence with 222 multi-family units and lush outdoor gardens. In the future, if the market changes, the site of the Carousel Place Residence can be developed into an office complex and/or a mixed-use project, and it can share parking and other amenities in the District. 01. Food Hall / Grocery . Store 02. Community Space 03. Harris Building 04. Carousel Place . Residence 05. Retail 06. Parking Structure 07. Fountain Plaza 08. Carousel Court 09. East Entry Plaza 10. 2nd Floor Platform 11. 3rd Street Bridge 12. Passageway 13. Community Garden 14. Basketball Court 15. Outdoor Seating 16. Garden/Landscape 17. Strolling Garden 18. Courtyard 19. Multi-purpose Trail 20. Drop-off 21. Parking Entry 22. Service Area 23. Galand Hotel 24. Harris Building SITE AREA 6.94 ACRES FAR 0.74 DENSITY 32 UNITS/ACRE TOTAL BUILDING AREA 223,000 SF 222 UNITS MULTI-FAMILY 182,000 SF 222 UNITS RETAIL 13,000 SF FOOD & BEVERAGE 20,000 SF COMMUNITY 8,000 SF PARKING 681 SPACES 2ND ST E STF ST200 Ft0 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 5904 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 112 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) /IMAGERY - FOOD HALL & GROCERY STORE 2.7 DISTRICT - CAROUSEL PLACE 60 THE GALAND 7.a Packet Pg. 113 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) /IMAGERY - COMMUNITY SPACE + RESIDENTIAL 2.7 DISTRICT - CAROUSEL PLACE 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 6104 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 114 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) /ELEVATION + ARCHITECTURAL CHARACTER 2.7 DISTRICT - CAROUSEL PLACE ±0.0 20.0 38.0 COMMUNITY CENTER / FOOD HALL NORTH ELEVATION 32 Ft0 62 THE GALAND 7.a Packet Pg. 115 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 7.a Packet Pg. 116 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 01010202 03 14 03 03 04 04 06 0708 0808 09 09 10 13 13 11 11 12 12 05 2.8 DISTRICT - CAL VIDA NORTH /SITE PLAN Cal Vida North is a lively residential oriented mixed-use district. Featuring 629 modern new residences, two residential buildings offer studio, one-bedroom, and two-bedroom units. Among them are 23 live/ work units facing Galand Green. 3,000 square feet of shops and cafe serve the residents. Outdoor gardens, lawns, playground, and rooftop terrace provide residents with recreation and relaxation amenities and provide the location for the residents’ community activities. SITE AREA 6.50 ACRES FAR 1.90 DENSITY 93 UNITS/ACRE TOTAL BUILDING AREA 538,350 SF 629 UNITS MULTI-FAMILY 497,150 SF 606 UNITS LIVE/WORK 38,200 SF 23 UNITS RETAIL 1,500 SF FOOD & BEVERAGE 1,500 SF PARKING 784 SPACES 01. Retail/F&B 02. Live/Work 03. Multi-family 04. Parking Structure 05. Promenade 06. North Paseo 07. Playground 08. Gardens 09. Courtyard 10. Roof Terrace 11. Multi-purpose Trail 12. Drop-off 13. Parking Entry 14. Galand Green 4TH ST 3RD ST F STG DR200 Ft0 64 THE GALAND 7.a Packet Pg. 117 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 2.8 DISTRICT - CAL VIDA NORTH /ELEVATION + RESIDENTIAL CHARACTER ±0.0 20.0 50.0 60.0 TYPICAL LIVE / WORK RESIDENTIAL BUILDING ELEVATION 32 Ft0 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 6504 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 118 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 2.8 DISTRICT - CAL VIDA NORTH /IMAGERY - GARDEN/TERRACE/COURTYARD/STREET 66 THE GALAND 7.a Packet Pg. 119 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 01010202 03 03 15 03 04 04 06 07 08 08 08 0808 09 09 09 10 14 14 13 13 11 12 05 2.9 DISTRICT - CAL VIDA SOUTH The twin to Cal Vida North, Cal Vida South features 600 modern new residences including 23 live/work units with 3,000 square feet of shops and cafes facing Galand Green. Outdoor amenities include a quiet courtyard, playground, half basketball court, shaded plaza and a strolling garden which stretches from E Street to G Street along 2nd Street. The well-appointed community garden at G Drive and 2nd Street includes an entry fountain, great lawn and community farms. SITE AREA 6.59 ACRES FAR 1.79 DENSITY 88 UNITS/ACRE TOTAL BUILDING AREA 514,200 SF 600 UNITS MULTI-FAMILY 473,200 SF 577 UNITS LIVE/WORK 38,000 SF 23 UNITS RETAIL 1,500 SF FOOD & BEVERAGE 1,500 SF PARKING 748 SPACES /SITE PLAN 01. Retail/F&B 02. Live/Work 03. Multi-family 04. Parking Structure 05. Promenade 06. North Paseo 07. Playground 08. Gardens 09. Courtyard 10. Roof Terrace 11. Multi-purpose Trail 12. Community Garden 13. Drop-off 14. Parking Entry 15. Galand Green 2ND ST 3RD ST F STG DR200 Ft0 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 6704 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 120 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 2.9 DISTRICT - CAL VIDA SOUTH ±0.0 40.0 TYPICAL MULTI-FAMILY RESIDENTIAL BUILDING ELEVATION /ELEVATION + RESIDENTIAL CHARACTER 32 Ft0 68 THE GALAND 7.a Packet Pg. 121 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 2.9 DISTRICT - CAL VIDA SOUTH /IMAGERY - GARDEN/TERRACE/COURTYARD/STREET 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 6904 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 122 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 01 01 01 01 02 02 02 03 12 12 06 13 10 09 07 08 07 14 14 17 16 16 15 11 11 05 2.10 DISTRICT - GALAND WEST Located on a triangle site at the west part of The Galand, Galand West provides 424-units of high-quality urban living and 7,000 square feet of shops and restaurants located at the street corners. It is a contemporary-styled, four- story building that wraps a four-story parking structure with rooftop terrace and solar panels. The buildings form two landscaped courtyards with water features and shaded seating area. The major pedestrian entry is at the east facing Galand Green. Various outdoor open spaces are along the perimeter of the buildings including the east entry gardens, playground, strolling gardens, and a dog park. A community garden at the north end of District is anchored by a fountain with lawns and seating area adjacent to the nearby cafe. SITE AREA 5.66 ACRES FAR 1.44 DENSITY 75 UNITS/ACRE TOTAL BUILDING AREA 354,600 SF 424 UNITS MULTI-FAMILY 347,600 SF 424 UNITS RETAIL 3,000 SF FOOD & BEVERAGE 4,000 SF PARKING 636 SPACES /SITE PLAN 01. Retail/F&B 02. Multi-family 03. Parking Structure 04. Promenade 05. Entry Plaza 06. Playground 07. Strolling Gardens 08. Corner Plaza 09. Dog Park 10. Community Garden 11. Linear Garden 12. Courtyard 13. Roof Terrace 14. Multi-purpose Trail 15. Drop-off 16. Parking Entry 17. Galand Green 3RD ST 3RD STG ST4TH STG DR200 Ft0 70 THE GALAND 7.a Packet Pg. 123 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) /IMAGERY - RESIDENTIAL 2.10 DISTRICT - GALAND WEST 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 7104 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 124 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) /IMAGERY - GARDEN/TERRACE/COURTYARD/STREET 2.10 DISTRICT - GALAND WEST 72 THE GALAND 7.a Packet Pg. 125 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 01 01 02 03 03 13 14 15 04 04 0607 08 08 09 09 1010 12 11 11 05 2.11 DISTRICT - GALAND GREEN Galand Green, the heart of The Galand, is a green park celebrating the revitalization of Downtown San Bernardino. Its plan is simple, elegant, and flexible enough to accommodate a wide variety of community uses. Linear allees of flowering trees line the promenades on the south and north sides of the central open space, connecting the park's many outdoor rooms. On the east side of Galand Green is Kiosk Plaza with ample seating around two 900-squarefoot cafes. At the center of Galand Green is the 28,300 square feet event lawn overlooked by the iconic F Stage at the west, an elegant performance pavilion at the terminus of the 3rd Street axis. Between F Stage and the Event Lawn is Mist Plaza, an interactive water feature that cools the area and makes it more comfortable for social activities during the hot summers. When the water feature is turned off, the plaza acts as a small event space. A grove of trees at the west of F Stage marks the west entry of Galand Green. Casual groupings of site furniture are scattered underneath the canopy which filters the sunlight down and creates changes of light and shadow. Galand Green attracts a vibrant, diverse crowd from downtown and across San Bernardino. The park is programmed all year long with holiday celebrations, summer concert, movie night, and a rotating menu of the region's popular food trucks. Galand Green itself becomes a destination with a strong sense of place and community. /SITE PLAN 01. F/B Kiosk 02. Kiosk Plaza 03. Linear Grove 04. Promenade 05. Event Lawn 06. Mist Plaza 07. F Stage 08. West Grove 09. Bathroom/Service 10. Drop-off 11. Food Truck Location 12. Fountain Plaza 13. Entry Plaza 14. North Paseo 15. South Paseo SITE AREA 1.98 ACRES FAR 0.03 DENSITY TOTAL BUILDING AREA 2,400 SF COMMUNITY 600 SF FOOD & BEVERAGE 1,800 SF PARKING 3RD ST 3RD ST F ST200 Ft0 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 7304 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 126 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) /IMAGERY - AMENITIES + ACTIVITIES 2.11 DISTRICT - GALAND GREEN 74 THE GALAND 7.a Packet Pg. 127 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 2.11 DISTRICT - GALAND GREEN /IMAGERY - AMENITIES + ACTIVITIES 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 7504 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 128 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 2.11 DISTRICT - GALAND GREEN 76 THE GALAND 7.a Packet Pg. 129 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 7.a Packet Pg. 130 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) G STH STF STG STF ST4TH ST COURTST 3RD N ST 3RD S ST 2ND ST G S T E ST100’0 200’ 1”=200’N 200 Ft0G STH STF STG STF ST4TH ST COURTST 3RD N ST 3RD S ST 2ND ST G S T E ST100’0 200’ 1”=200’N 200 Ft0 2.12 TECHNICAL DATA PARCEL SITE AREA (ACRE)% R-1 5.66 13.4% R-2 3.65 8.6% R-3 2.85 6.8% R-4 3.00 7.1% R-5 3.60 8.5% R-6 3.29 7.8% SUBTOTAL 22.04 52.2% C-1 3.27 7.7% C-2 0.87 2.1% C-3 2.28 5.4% C-4 3.65 8.7% SUBTOTAL 10.07 23.9% O-1 1.39 3.3% O-2 1.98 4.7% SUBTOTAL 3.37 8.0% F ST 2.52 6.0% G DR 1.87 4.4% 3RD N/S ST 1.58 3.7% OTHERS 0.75 1.8% SUBTOTAL 6.72 15.9% TOTAL 42.20 100.0% R-1 3RD N ST 3RD S ST R-3R-2 C-1 C-3 C-2 C-4 O-2 F STG DRO-1 R-6 R-5R-4 PARCEL SUMMARY 78 THE GALAND 7.a Packet Pg. 131 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 2.12 TECHNICAL DATA R-1 3RD N ST 3RD S ST R-3R-2 C-1 C-3 C-2 C-4 O-2 F STG DRO-1 R-6 R-5R-4 PARCEL SITE AREA (ACRE) FAR DENSITY (UNIT/ ACRE) TOTAL BUILDING AREA (SF)* PROGRAM BREAKDOWN MULTI-FAMILY** LIVE/WORK OFFICE RETAIL/F&B/ ENTERTAINMENT HOTEL COMMUNITY PARKING STRUCTURE AREA (SF)(UNIT)AREA (SF)(UNIT)AREA (SF)AREA (SF)AREA (SF)BOUTIQUE (KEY)CONDOTEL (KEY)AREA (SF)AREA (SF)(SPACE) R-1 5.66 1.44 75 354,600 347,600 424 7,000 218,400 636 R-2 3.65 2.17 107 344,250 320,150 390 22,600 14 1,500 155,250 460 R-3 2.85 1.56 76 194,100 177,000 216 15,600 10 1,500 125,000 324 R-4 3.00 1.47 71 192,200 174,500 213 16,200 10 1,500 125,000 319 R-5 3.60 2.06 101 322,000 298,700 364 21,800 13 1,500 150,000 429 R-6 3.29 1.28 67 183,000 182,000 222 1,000 112,500 333 C-1 3.27 1.61 228,800 132,000 96,800 140,000 400 C-2 0.87 1.84 70,000 70,000 C-3 2.28 3.24 321,200 14,000 307,200 150 200 120,000 300 C-4 3.65 0.25 40,000 32,000 8,000 113,100 348 O-1 1.39 0.00 O-2 1.98 0.03 2,400 1,800 600 TOTAL 35.48 1.46 53 2,252,550 1,499,950 1,829 76,200 46 202,000 158,600 307,200 150 200 8,600 1,259,250 3,549 SITE AREA (ACRE)GROSS FAR GROSS DENSITY (UNIT/ACRE)Note: * Not including parking structure. ** Rental or for-sale units per market demands. TOTAL SITE 42.20 1.23 44 PARCEL PROGRAM (SF) RETAIL F&B ENTER- TAINMENT FITNESS CENTER TOTAL R-1 3,000 4,000 7,000 R-2 1,500 1,500 R-3 1,500 1,500 R-4 1,500 1,500 R-5 1,500 1,500 R-6 1,000 C-1 20,800 12,000 24,000 40,000 96,800 C-2 C-3 14,000 14,000 C-4 12,000 20,000 32,000 O-1 O-2 1,800 1,800 TOTAL 39,800 54,800 24,000 40,000 158,600 PARCEL RESIDENTIAL UNIT MULTI- FAMILY LIVE/ WORK TOTAL R-1 424 424 R-2 390 14 404 R-3 216 10 225 R-4 213 10 223 R-5 364 13 377 R-6 222 222 C-1 C-2 C-3 C-4 O-1 O-2 TOTAL 1,829 46 1,875 PARCEL PARKING STRUCTURE (SPACE)STREET PARKING (SPACE) TOTALRESIDENTIALCOMMERCIALSUBTOTAL R-1 636 R-2 460 R-3 324 R-4 319 R-5 429 R-6 333 C-1 400 C-2 C-3 300 C-4 348 O-1 O-2 F ST 36 G DR 25 3RD ST 102 TOTAL 2,501 1,048 3,549 163 3,712 PROGRAM SUMMARY RETAIL/F&B/ENTERTAINMENT RESIDENTIAL UNIT PARKING SUMMARY 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 7904 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 132 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 2.13 PHASING /PHASE 1 354,600 sf | 636 parking spaces /PHASE 3-1 322,000 sf | 429 parking spaces /PHASE 2-1 194,100 sf | 324 parking spaces /PHASE 3-2 192,200 sf | 319 parking spaces /PHASE 2-2 344,250 sf | 460 parking spaces /PHASE 3-3 2,400 gsf | 0 parking spaces 80 THE GALAND 7.a Packet Pg. 133 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 2.13 PHASING /PHASE 4-1 183,000 sf | 333 parking spaces /PHASE 5-2 70,000 sf | 0 parking spaces /PHASE 4-2 40,000 sf | 348 parking spaces /PHASE 5-3 321,200 sf | 300 parking spaces /COMPLETION 2,252,550 sf | 3,549 parking spaces /PHASE 5-1 228,800 sf | 400 parking spaces 01 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 02 SITE DEVELOPMENT 8104 TRANSACTION TERM & CONDITIONS 7.a Packet Pg. 134 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) thorough. 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 TASK NAME H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 The Galand Development Schedule 2,382 days Wed 5/27/20 Thu 7/12/29 Master Proposal Submittal 0 days Wed 5/27/20 Wed 5/27/20 Letter of Award by City 7 days Wed 5/27/20 Thu 6/4/20 Development Agreement / Open Escrow 90 days Fri 6/5/20 Thu 10/8/20 Subdivision / Planning Plan Submittal 90 days Fri 8/28/20 Thu 12/31/20 Entitlement Process - Tentative Tract Map 365 days Fri 1/1/21 Thu 5/26/22 Phase 1 - DD & CD Drawing - Submittal 180 days Fri 8/6/21 Thu 4/14/22 Phase 1 - Construction Document Plan-check 90 days Fri 4/15/22 Thu 8/18/22 Phase 1 - Close of Escrow upon Permit Ready 0 days Thu 8/18/22 Thu 8/18/22 Phase 1 - Demo / Grading 60 days Fri 8/19/22 Thu 11/10/22 Phase 1 - Construction 522 days Fri 11/11/22 Mon 11/11/24 Phase 1 - Leasing 180 days Tue 10/1/24 Mon 6/9/25 G Dr - Infrastructure / Street Work - by City 180 days Fri 11/11/22 Thu 7/20/23 Phase 2 - DD & CD Drawing - Submittal 120 days Fri 7/8/22 Thu 12/22/22 Phase 2 - Construction Document Plan-check 90 days Fri 12/23/22 Thu 4/27/23 Phase 2 - Close of Escrow upon Permit Ready 0 days Thu 4/27/23 Thu 4/27/23 Phase 2 - Demo / Grading 80 days Fri 4/28/23 Thu 8/17/23 Phase 2 - Construction 600 days Fri 8/18/23 Thu 12/4/25 Phase 2 - Leasing 180 days Fri 10/24/25 Thu 7/2/26 F St & 3rd St - Infrastructure / Street Work by City 180 days Fri 8/18/23 Thu 4/25/24 Phase 3 - DD & CD Drawing - Submittal 120 days Fri 3/17/23 Thu 8/31/23 Phase 3 - Construction Document Plan-check 90 days Fri 9/1/23 Thu 1/4/24 Phase 3 - Close of Escrow upon Permit Ready 0 days Thu 1/4/24 Thu 1/4/24 Phase 3 - Demo / Grading 80 days Fri 1/5/24 Thu 4/25/24 Phase 3 - Construction / Common Green + 3rd St 600 days Fri 4/26/24 Thu 8/13/26 Phase 3 - Leasing 180 days Fri 7/3/26 Thu 3/11/27 Phase 4 - DD & CD Drawing - Submittal 180 days Fri 10/13/23 Thu 6/20/24 Phase 4 - Construction Document Plan-check 90 days Fri 6/21/24 Thu 10/24/24 Phase 4 - Close of Escrow upon Permit Ready 0 days Thu 10/24/24 Thu 10/24/24 Phase 4 - Demo / Grading 120 days Fri 10/25/24 Thu 4/10/25 Phase 4 - Construction 600 days Fri 4/11/25 Thu 7/29/27 Phase 4 - Leasing 180 days Fri 6/18/27 Thu 2/24/28 Phase 5 - DD & CD Drawing - Submittal 210 days Fri 6/21/24 Thu 4/10/25 Phase 5 - Construction Document Plan-check 90 days Fri 4/11/25 Thu 8/14/25 Phase 5 - Close of Escrow upon Permit Ready 0 days Thu 8/14/25 Thu 8/14/25 Phase 5 - Demo / Grading 120 days Fri 8/15/25 Thu 1/29/26 Phase 5 - Construction 600 days Fri 1/30/26 Thu 5/18/28 Phase 5 - Leasing and Operating 180 days Fri 4/7/28 Thu 12/14/28 Project Exit 180 days Fri 11/3/28 Thu 7/12/29 ID Task Name Duration Start Finish 1 The Gland Development Schedule 2382 daysWed 5/27/20Thu 7/12/29 2 Master Proposal Submi�al 0 days Wed 5/27/20Wed 5/27/20 3 Le�er of Award by City 7 days Wed 5/27/20Thu 6/4/20 4 Development Agreement / Open Escrow 90 days Fri 6/5/20 Thu 10/8/20 5 Subdivision / Planning Plan Submi�al 90 days Fri 8/28/20 Thu 12/31/20 6 En�tlement Process - Tenta�ve Tract Map 365 days Fri 1/1/21 Thu 5/26/22 7 Phase 1 - DD & CD Drawing - Submi�al 180 days Fri 8/6/21 Thu 4/14/22 8 Phase 1 - Construc�on Document Plan-check 90 days Fri 4/15/22 Thu 8/18/22 9 Phase 1 - Close of Escrow upon Permit Ready 0 days Thu 8/18/22 Thu 8/18/22 10 Phase 1 - Demo / Grading 60 days Fri 8/19/22 Thu 11/10/22 11 Phase 1 - Construc�on 522 days Fri 11/11/22Mon 11/11/24 12 Phase 1 - Leasing 180 days Tue 10/1/24 Mon 6/9/25 13 G Dr - Infrastructure / Street Work - by City 180 days Fri 11/11/22Thu 7/20/23 14 Phase 2 - DD & CD Drawing - Submi�al 120 days Fri 7/8/22 Thu 12/22/22 15 Phase 2 - Construc�on Document Plan-check 90 days Fri 12/23/22Thu 4/27/23 16 Phase 2 - Close of Escrow upon Permit Ready 0 days Thu 4/27/23 Thu 4/27/23 17 Phase 2 - Demo / Grading 80 days Fri 4/28/23 Thu 8/17/23 18 Phase 2 - Construc�on 600 days Fri 8/18/23 Thu 12/4/25 19 Phase 2 - Leasing 180 days Fri 10/24/25Thu 7/2/26 20 F St - Infrastructure / Street Work by City 180 days Fri 8/18/23 Thu 4/25/24 21 Phase 3 - DD & CD Drawing - Submi�al 120 days Fri 3/17/23 Thu 8/31/23 22 Phase 3 - Construc�on Document Plan-check 90 days Fri 9/1/23 Thu 1/4/24 23 Phase 3 - Close of Escrow upon Permit Ready 0 days Thu 1/4/24 Thu 1/4/24 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5/27 8/18 4/27 1/4 10/24 8/14 2.14 PRELIMINARY DEVELOPMENT SCHEDULE 82 THE GALAND 7.a Packet Pg. 135 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) thorough. ECONOMIC ANALYSIS & PROFOR-MA . Ensuring project economic viability with a thorough market analysis. [The detailed information is included in the full report of Market Study.] 7.a Packet Pg. 136 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) G STH STF STG STF ST4TH ST COURTST 3RD N ST 3RD S ST 2ND ST G S T E ST100’0 200’ 1”=200’N 200 Ft0G STH STF STG STF ST4TH ST COURTST 3RD N ST 3RD S ST 2ND ST G S T E ST100’0 200’ 1”=200’N 200 Ft0 R-1 3RD N ST 3RD S ST R-3R-2 C-1 C-3 C-2 C-4 O-2 F STG DRO-1 R-6 R-5R-4 3.1 MARKET STUDY /BASE SITE MAP 84 THE GALAND 7.a Packet Pg. 137 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) PARCEL SITE AREA (ACRE) FAR DENSITY (UNIT/ ACRE) TOTAL BUILDING AREA (SF)* PROGRAM BREAKDOWN MULTI-FAMILY** LIVE/WORK OFFICE RETAIL/F&B/ ENTERTAINMENT HOTEL COMMUNITY PARKING STRUCTURE AREA (SF)(UNIT)AREA (SF)(UNIT)AREA (SF)AREA (SF)AREA (SF)BOUTIQUE (KEY)CONDOTEL (KEY)AREA (SF)AREA (SF)(SPACE) R-1 5.66 1.44 75 354,600 347,600 424 7,000 218,400 636 R-2 3.65 2.17 107 344,250 320,150 390 22,600 14 1,500 155,250 460 R-3 2.85 1.56 76 194,100 177,000 216 15,600 10 1,500 125,000 324 R-4 3.00 1.47 71 192,200 174,500 213 16,200 10 1,500 125,000 319 R-5 3.60 2.06 101 322,000 298,700 364 21,800 13 1,500 150,000 429 R-6 3.29 1.28 67 183,000 182,000 222 1,000 112,500 333 C-1 3.27 1.61 228,800 132,000 96,800 140,000 400 C-2 0.87 1.84 70,000 70,000 C-3 2.28 3.24 321,200 14,000 307,200 150 200 120,000 300 C-4 3.65 0.25 40,000 32,000 8,000 113,100 348 O-1 1.39 0.00 O-2 1.98 0.03 2,400 1,800 600 TOTAL 35.48 1.46 53 2,252,550 1,499,950 1,829 76,200 46 202,000 158,600 307,200 150 200 8,600 1,259,250 3,549 SITE AREA (ACRE)GROSS FAR GROSS DENSITY (UNIT/ACRE) TOTAL SITE 42.20 1.23 44 Note: * Not including parking structure. ** Rental or for-sale units per market demands. PARCEL PROGRAM (SF) RETAIL F&B ENTER- TAINMENT FITNESS CENTER TOTAL R-1 3,000 4,000 7,000 R-2 1,500 1,500 R-3 1,500 1,500 R-4 1,500 1,500 R-5 1,500 1,500 R-6 1,000 C-1 20,800 12,000 24,000 40,000 96,800 C-2 C-3 14,000 14,000 C-4 12,000 20,000 32,000 O-1 O-2 1,800 1,800 TOTAL 39,800 54,800 24,000 40,000 158,600 PARCEL SITE AREA (ACRE) F ST 2.52 G DR 1.87 3RD N/S ST 1.58 OTHERS 0.75 TOTAL 6.72 PARCEL PARKING STRUCTURE (SPACE)STREET PARKING (SPACE) TOTALRESIDENTIALCOMMERCIALSUBTOTAL R-1 636 R-2 460 R-3 324 R-4 319 R-5 429 R-6 333 C-1 400 C-2 C-3 300 C-4 348 O-1 O-2 F ST 36 G DR 25 3RD N/S ST 102 TOTAL 2,501 1,048 3,549 163 3,712 PROGRAM SUMMARY RETAIL/F&B/ENTERTAINMENTR.O.W AREA SUMMARY PARKING SUMMARY 3.1 MARKET STUDY /OVERALL PROGRAM 8501 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 04 TRANSACTION TERM & CONDITIONS02 SITE DEVELOPMENT 7.a Packet Pg. 138 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) PARCEL AREA (SF)UNIT MULTI-FAMILY LIVE/WORK TOTAL MULTI-FAMILY LIVE/WORK TOTAL R-1 347,600 347,600 424 424 R-2 320,150 22,600 342,750 390 14 404 R-3 177,000 15,600 192,600 216 10 225 R-4 174,500 16,200 190,700 213 10 223 R-5 298,700 21,800 320,500 364 13 377 R-6 182,000 182,000 222 222 TOTAL 1,499,950 76,200 1,576,150 1,829 46 1,875 3.1 MARKET STUDY /RESIDENTIAL COMPONENT Angeles County. Recent home appreciation in the San Bernardino submarket has been stronger than submarkets in Riverside County, and the lure of less expensive homeownership is fading. Median home prices in the submarket range from around $300,000 in the Cities of San Bernardino and Rialto to about $420,000 in Redlands. This trend has driven up demand for higher quality rental product. • Apartment vacancies have been steady at around 4% since mid-2015, although recent deliveries have caused a short-term spike in the vacancy rate. Stabilized vacancy is 5% and projections are based on historical levels. • The market has demonstrated an acceptance of luxury product in recent years. The 300-unit Circa 2020, features luxurious amenities that mirror new apartments in neighboring Greater Ontario/Rancho Cucamonga submarket. Asking rents were roughly 20% above the 4 & 5-Star average in the submarket and the property stabilized rapidly. • Rent growth in the San Bernardino Submarket continued to outpace the Inland Empire average through 20Q1, but growth is forecasted to level. • Rent escalations had been strongest in apartments with more than 500 units, where rent growth outpaced the submarket average by roughly 400 basis points in 20Q1. All of these apartments were developed in the 1990s. Meanwhile, rents in apartments with fewer than 50 units trailed the submarket average by roughly 250 basis points that same quarter. • Prospects for development will continue to compete with new development in the Greater Ontario/Rancho Cucamonga Submarket, where most new supply in the metro has been developed during this cycle. • Investor appetite for apartments in San Bernardino remains high. Sales volume topped $300 million in 2019 for the fourth time in five years. Roughly 5% of inventory traded hands, and yet no 4 or 5-Star apartments sold over the year. The bulk of volume is derived from value-add deals • The 424 residential units comprised of Planning Area R-1 are currently proposed as for-sale condominium product. • Retail and food & beverage uses that support the local tenant base are included in each of the residential development phases. Ideally sized retail spaces range between 1,500± and 5,000± square feet to support restaurants, community-serving retailers and local businesses. • The San Bernardino submarket was hard hit housing crash in the last decade and many single-family homes became rentals. Many of those have since returned to the homeowner market. Similar to apartment rents, single-family homeownership remains an accessible option for households priced out of more expensive markets, particularly in Los RENTAL MARKET HIGHLIGHTS • The proposed building area for the residential component is 1,576,150 gross square feet with a total of 1,875 units (1,829 multifamily and 46 live/ work), which equates to 841 square feet per unit. • The average unit size of 841 square feet is reasonable and market oriented. • The residential product will be delivered in six phases. The smallest residential planning area will contain 182,000 square feet and 222 units. The largest residential planning area will contain 347,600 square feet and 424 units. A summary of the residential area by planning area is shown in the following table. CONDOMINIUM MARKET HIGHLIGHTS • Overall unit sizes for comparable condominium product range from 1,059 square feet to 1,825 square feet, which is larger than the proposed average unit size at The Galand. • Predominant pricing ranges from approximately $325,000 to $425,000 per unit and $250-$350 per square foot. • Unit mixes at the comparables generally demonstrate a strong tendency toward 2BR units, with notable proportions of 1BR and 3BR units as well. • The majority of the existing inventory in the San Bernardino market is low- rise, walk-up townhome-style product. There are few, if any, condominium projects higher than 3-stories in the market area. • The predominant range in average absorption for comparable condominium product is 3.0 to 6.0 percent of the total inventory per month. 86 THE GALAND 7.a Packet Pg. 139 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) PARCEL PROGRAM (SF) RETAIL F&B ENTERTAIN- MENT FITNESS CEN- TER TOTAL R-1 3,000 4,000 7,000 R-2 1,500 1,500 R-3 1,500 1,500 R-4 1,500 1,500 R-5 1,500 1,500 R-6 1,000 1,000 C-1 20,800 12,000 24,000 40,000 96,800 C-3 14,000 14,000 C-4 12,000 20,000 32,000 O-2 1,800 1,800 TOTAL 39,800 54,800 24,000 40,000 158,600 3.1 MARKET STUDY /RETAIL COMPONENT • The total amount of programmed retail space is comprised of the following use types: • 158,600 GSF is the total current programmed amount of retail space, which is reasonable and market oriented on market demand for retail and the future outlook for retail, which is one that is rapidly shifting and one of a downscaled bricks-and-mortar inventory. • Gym – a full-service gym is a desirable amenity to all project components; residents, office workers, hotel guests and residents of the community. Full-service fitness centers are in excess of 30,000 square feet. A club concept offering cardio equipment, free weights and other weight training machines, group exercise classes, food and beverage and childcare is programmed for The Galand. • The retail components of mixed-use developments in the market typically have tenant mixes that are largely food and beverage (restaurant) tenants with soft goods tenants typically occupying less than 50 percent of the total space. The tenant mix of the retail component of The Galand is in line with market norms. • Retail and F&B uses that support the local customer base are included in each of the multi-family phases. • Rents in the submarket have been in line with the metro, growing by 2.8% over the past year compared to 2.7% in the Inland Empire. Rents remain more than 15% below their pre-recession peak in 2007. Nevertheless, transaction volume in San Bernardino is near its all-time high. /OFFICE COMPONENT • .The Galand will have 202,000 square feet of Class A office located within two buildings at the northeastern portion of the site fronting W. 4th Street and N. E Street. • The office component represents 10 percent of The Galand project. • Office buildings will be three and four stories in height. • The office is to be built as part of a later phase of development that will also include retail and hotel components. • Office demand for The Galand would be primarily generated from tenants which are ancillary to city government. For this location, higher parking ratios are a major factor in prospective tenant’s decision to locate at the project. • The project’s civic center location bodes well for the typical user in the submarket. The Galand’s office component has the ability to create a competitive advantage over the existing product, which is primarily comprised of older office product. • San Bernardino's vacancy rate has compressed over the longer term to 8.9%, partly a product of limited supply additions, coupled with slow, but steady business expansions throughout this cycle. • Government agencies have historically been among the most prominent office users in San Bernardino, • Rents in San Bernardino are among the lowest in the Inland Empire. /HOTEL COMPONENT • The market supports a hotel concept of around 150-rooms. However, in a long-term master-planned redevelopment like The Galand, market shifts could eventually support a larger hotel or a hotel with residential units incorporated. The programming for The Galand incorporates this optionality. • Amenities in the 150-room option include a limited food and beverage operation, business center, swimming pool, exercise room, guest laundry, and 1,000 - 3,000 square feet of meeting space. 8701 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 04 TRANSACTION TERM & CONDITIONS02 SITE DEVELOPMENT 7.a Packet Pg. 140 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 3.2 PROFORMAS – HYPOTHETICAL AS IF STABILIZEDTHE GALAND REDEVELOPMENT EXECUTIVE SUMMARY CUSHMAN & WAKEFIELD 8 Proformas – Hypothetical As If Stabilized SUMMARY OF REVENUE AND EXPENSES - RESIDENTIAL REVENUE Annual $/Unit Potential Rent $40,731,750 $21,724 Model/Emp Unit ($203,659) -$109 RUBS (50% of Utils)$1,009,339 $538 Other $1,875,000 $1,000 POTENTIAL GROSS REVENUE $43,412,430 $25,328 Vacancy and Collection Loss (7.0%)($3,038,870) -$1,773 EFFECTIVE GROSS REVENUE $40,373,560 $23,555 OPERATING EXPENSES 0 Insurance $403,736 $215 Utilites $2,018,678 $1,077 R&M $605,603 $323 Turnover $282,615 $151 Payroll $2,422,414 $1,292 Management Fee $1,009,339 $538 G&A $403,736 $215 Marketing $605,603 $323 Contract $1,211,207 $646 Reserves $322,988 $172 Total Operating Expenses $2,543,534 $1,357 Real Estate Taxes $8,428,924 $4,495 TOTAL EXPENSES $10,972,458 $5,852 NET OPERATING INCOME $29,401,102 $15,681 Compiled by Cushman & Wakefield Western, Inc. SUMMARY OF REVENUE AND EXPENSES - OFFICE REVENUE Annual $/SF Base Rental Revenue $6,060,000 $30.00 Expense Reimbursements $0 $0.00 POTENTIAL GROSS REVENUE $6,060,000 $30.00 Vacancy and Collection Loss (7.0%)($424,200) ($2.10) EFFECTIVE GROSS REVENUE $5,635,800 $27.90 OPERATING EXPENSES 0 All Controllable $1,010,000 $5.00 Insurance $202,000 $1.00 Management Fees @ 2.0% EGI $112,716 $0.56 Total Operating Expenses $1,324,716 $6.56 Real Estate Taxes $761,572 $3.77 TOTAL EXPENSES $2,086,288 $10.33 NET OPERATING INCOME $3,549,512 $17.57 Compiled by Cushman & Wakefield Western, Inc. SUMMARY OF REVENUE AND EXPENSES - RETAIL REVENUE Annual $/SF Retail/Restaurant $3,913,800 $33.00 Gym $840,000 $21.00 Base Rental Revenue $4,753,800 $29.97 Expense Reimbursements $3,433,045 $21.65 POTENTIAL GROSS REVENUE $8,186,845 $51.62 Vacancy and Collection Loss (5.0%)($409,342) ($2.58) EFFECTIVE GROSS REVENUE $7,777,502 $49.04 OPERATING EXPENSES 0 CAM Expenses $1,903,200 $12.00 Insurance $237,900 $1.50 Management Fees @ 3.5% EGI $272,213 $1.72 Total Operating Expenses $2,413,313 $15.22 Real Estate Taxes $1,019,732 $6.43 TOTAL EXPENSES $3,433,045 $21.65 NET OPERATING INCOME $4,344,458 $27.39 Compiled by Cushman & Wakefield Western, Inc. THE GALAND REDEVELOPMENT EXECUTIVE SUMMARY CUSHMAN & WAKEFIELD 9 Fiscal Year:Stabilized Days in Year:365 Number of Rooms:150 Rooms Available:54,750 Occupied Rooms:42,158 Occupancy:77.0% Average Rate:$146.71 RevPAR:$112.97 $ % (000's) Gross PAR POR REVENUES Rooms $6,185 89.9% $41,233 $146.71 Food & Beverage 492 7.2% 3,280 11.67 Other Operated Departments 148 2.2% 987 3.51 Miscellaneous Income 49 0.7% 327 1.16 Total Revenues 6,874 100.0% 45,827 163.06 DEPARTMENTAL COSTS Rooms 1,662 26.9% 11,080 39.42 Food & Beverage 394 80.1% 2,627 9.35 Other Operated Departments 22 14.9% 147 0.52 Total Departmental Costs 2,078 30.2% 13,853 49.29 DEPARTMENTAL INCOME 4,796 69.8% 31,973 113.76 UNDISTRIB. OPERATING EXPENSES Administrative & General 433 6.3% 2,887 10.27 Marketing 497 7.2% 3,313 11.79 Franchise Fees 340 4.9% 2,267 8.06 Property Operations & Maintenance 215 3.1% 1,433 5.10 Utility Costs 204 3.0% 1,360 4.84 Information & Telecommunications Systems 86 1.3% 573 2.04 Total Undistrib. Operating Expenses 1,775 25.8% 11,833 42.10 MANAGEMENT FEES Base Management Fee 206 3.0% 1,373 4.89 Total Management Fees 206 3.0% 1,373 4.89 GROSS OPERATING PROFIT 2,815 41.0% 18,767 66.77 FIXED CHARGES Property Taxes 342 5.0% 2,278 8.11 Insurance 140 2.0% 933 3.32 Reserve for Replacement 275 4.0% 1,833 6.52 Total Fixed Charges 757 11.0% 5,045 17.95 NET OPERATING INCOME 2,058 30.0% 13,722 48.82 Stabilized Year ProForma - Carousel Mall Hotel - San Bernardino, CA THE GALAND REDEVELOPMENT EXECUTIVE SUMMARY CUSHMAN & WAKEFIELD 10 COMMUNITY BENEFITS As proposed, The Galand will yield significant benefits for the City of San Bernardino, including: 2,251,550 square feet of mixed-use space over 5 phases $753,000,000 total investment in San Bernardino $15.1 million state and local tax revenue 562 permanent jobs 1,875 new residential units A total 3.37 acres of open space Planned communal area to be utilized by the city for public events and educational purposes, comprised of an 8,000 square foot community building with outdoor community garden providing event space, shaded seating, resting place and a basketball court. THE GALAND REDEVELOPMENT EXECUTIVE SUMMARY CUSHMAN & WAKEFIELD 8 Proformas – Hypothetical As If Stabilized SUMMARY OF REVENUE AND EXPENSES - RESIDENTIAL REVENUE Annual $/Unit Potential Rent $40,731,750 $21,724 Model/Emp Unit ($203,659) -$109 RUBS (50% of Utils)$1,009,339 $538 Other $1,875,000 $1,000 POTENTIAL GROSS REVENUE $43,412,430 $25,328 Vacancy and Collection Loss (7.0%)($3,038,870) -$1,773 EFFECTIVE GROSS REVENUE $40,373,560 $23,555 OPERATING EXPENSES 0 Insurance $403,736 $215 Utilites $2,018,678 $1,077 R&M $605,603 $323 Turnover $282,615 $151 Payroll $2,422,414 $1,292 Management Fee $1,009,339 $538 G&A $403,736 $215 Marketing $605,603 $323 Contract $1,211,207 $646 Reserves $322,988 $172 Total Operating Expenses $2,543,534 $1,357 Real Estate Taxes $8,428,924 $4,495 TOTAL EXPENSES $10,972,458 $5,852 NET OPERATING INCOME $29,401,102 $15,681 Compiled by Cushman & Wakefield Western, Inc. SUMMARY OF REVENUE AND EXPENSES - OFFICE REVENUE Annual $/SF Base Rental Revenue $6,060,000 $30.00 Expense Reimbursements $0 $0.00 POTENTIAL GROSS REVENUE $6,060,000 $30.00 Vacancy and Collection Loss (7.0%)($424,200) ($2.10) EFFECTIVE GROSS REVENUE $5,635,800 $27.90 OPERATING EXPENSES 0 All Controllable $1,010,000 $5.00 Insurance $202,000 $1.00 Management Fees @ 2.0% EGI $112,716 $0.56 Total Operating Expenses $1,324,716 $6.56 Real Estate Taxes $761,572 $3.77 TOTAL EXPENSES $2,086,288 $10.33 NET OPERATING INCOME $3,549,512 $17.57 Compiled by Cushman & Wakefield Western, Inc. SUMMARY OF REVENUE AND EXPENSES - RETAIL REVENUE Annual $/SF Retail/Restaurant $3,913,800 $33.00 Gym $840,000 $21.00 Base Rental Revenue $4,753,800 $29.97 Expense Reimbursements $3,433,045 $21.65 POTENTIAL GROSS REVENUE $8,186,845 $51.62 Vacancy and Collection Loss (5.0%)($409,342) ($2.58) EFFECTIVE GROSS REVENUE $7,777,502 $49.04 OPERATING EXPENSES 0 CAM Expenses $1,903,200 $12.00 Insurance $237,900 $1.50 Management Fees @ 3.5% EGI $272,213 $1.72 Total Operating Expenses $2,413,313 $15.22 Real Estate Taxes $1,019,732 $6.43 TOTAL EXPENSES $3,433,045 $21.65 NET OPERATING INCOME $4,344,458 $27.39 Compiled by Cushman & Wakefield Western, Inc. 88 THE GALAND 7.a Packet Pg. 141 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 2,252,550 SQFT MIXED-USE 3.37 ACRES OF DESIGNATED PUBLIC OPEN SPACE ± $800 M TOTAL INVESTMENT $15.1 M STATE & LOCAL TAX REVENUE 8,000 SQFT OF COMMUNITY CENTER 562 PERMANENT JOB 3.3 COMMUNITY BENEFITS As proposed, The Galand will yield significant benefits for the City of San Bernardino, including: • 2,252,550 square feet of mixed-use space over 5 phases • $753,000,000 total investment in San Bernardino • $15.1 million state and local tax revenue • 562 permanent jobs • 1,875 new residential units • A total 3.37 acres of open space • Planned communal area to be utilized by the city for public events and educational purposes, comprised of an 8,000 square foot community building with outdoor community garden providing event space, shaded seating, resting place and a basketball court. FEASIBILITY Based on our analysis, the overall development concept of The Galand is considered economically feasible under current market conditions. The level of feasibility varies between the individual program elements, with the residential component (as rental apartments) being most economically feasible, followed by the retail and office components. The market currently supports a hotel concept of around 150 rooms. However, in a long-term masterplanned redevelopment like The Galand, market shifts could eventually support a larger hotel or a hotel with residential units incorporated. The programming for The Galand incorporates this optionality. • Total estimated investment = $753,000,000 • Aggregate proforma values of the individual program elements = $817,000,000 THE GALAND REDEVELOPMENT EXECUTIVE SUMMARY CUSHMAN & WAKEFIELD 11 Feasibility Based on our analysis, the overall development concept of The Galand is considered economically feasible under current market conditions. The level of feasibility varies between the individual program elements, with the residential component (as rental apartments) being most economically feasible, followed by the retail and office components. The market currently supports a hotel concept of around 150 rooms. However, in a long-term master- planned redevelopment like The Galand, market shifts could eventually support a larger hotel or a hotel with residential units incorporated. The programming for The Galand incorporates this optionality. Total estimated investment = $753,000,000 Aggregate proforma values of the individual program elements = $817,000,000 Retail Component $51,220,000 Hotel Component (F&B/Other)$640,000 Total Retail Sales Revenues $51,860,000 California 6.00% $3,111,600 San Bernardino County 0.25%$129,650 City of San Bernardino 0.25%$129,650 San Bernardino Co Local Tax 1.00%$518,600 San Bernardino County District Tax 0.50%$259,300 Total Retail Sales Tax Revenues 8.00% $4,148,800 Estimated Total Annual Taxable Revenues - Hotel $6,185,000 San Bernardino County Transient Occupancy Tax Rate 7.00% Total Transient Occupancy Tax Revenues $432,950 Taxable Values Residential Compoent $653,000,000 Retail Component $79,000,000 Office Component $59,000,000 Hotel Component $26,000,000 Total Taxable Value $817,000,000 Property Tax Rate - San Bernardino County California 1.0000% $8,170,000 Local 0.2908%$2,375,836 Total Property Tax Revenues 0.012908 $10,545,836 Estimated Total Annual Tax Revenues - State $11,281,600 Estimated Total Annual Tax Revenues - Local $3,845,986 EE SS TT IIMMAATT EE DD AANNNNUUAALL SS TT AATT EE AANNDD LLOO CC AALL TT AAXX RR EE VVEE NNUUEE SS Estimated Transient Occupancy Tax Revenues Estimated Retail Sales Tax Revenues Estimated Retail Sales Revenues Estimated Property Tax Revenues Space Use Type Average SF Per Worker Galand Project Area Jobs Created Retail (other than mall) 1,450 102,800 71 Food & Beverage 567 54,800 97 Office 600 202,000 337 Lodging 2,541 135,000 53 Public assembly 1,800 8,600 5 Total Jobs Created:562 Space Utilization Per Job Rates* * U.S. (EIA) Survey of Commercial Buildings - December 2016 Permanent Jobs Created 30+ ANNUAL EVENTS 1,875 UNITS 8901 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 04 TRANSACTION TERM & CONDITIONS02 SITE DEVELOPMENT 7.a Packet Pg. 142 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 3.4 ADDITIONAL PROJECT BENEFITS The Galand offers a variety of uses, networks, spaces, and amenities that will be leveraged and enjoyed by everyone. It will provide a true hub of mixed use activity in a downtown that has suffered for a long time from a lack of development interest. It will become a destination in the heart of the gateway city. A CATALYST FOR CHANGE The Galand will stimulate the development in the neighboring parcels as well as Downtown of San Bernardino. By creating a true mixed use hub in downtown there will be daytime workers, visitors staying at the hotel and dining in the restaurants and frequenting shops, and locals living in residential buildings, the overall development will promote the economic vitality of the downtown as a whole; it will generate activity, promote pedestrian flow, and improve safety and multimodal accessibility throughout downtown. CLASSIC URBANISM The project retains portion of the Carousel Mall, adaptively reuses the Woolworth Building, restores the east entry plaza, installs a new carousel and fountains that will reestablish the site as an important hub of activity in downtown. The various events and activities occurring at Gala Green, the community center and other open spaces will promote arts, culture and social interaction and reestablish downtown San Bernardino as the active heart of the city and region. A GREEN HUB The Galand's open space creates linkages to surrounding neighborhoods, creates energized hubs of activity, and replaces concrete parking lots with much needed diverse green spaces; from green parks and plazas, to semi private courts and upper story terraces with views. High quality streetscapes will create significant green buffers and provide trails and gathering areas that can be enjoyed by workers, residents, and visitors. AUTHENTICITY THROUGH DIVERSITY The proposed plan is comprised of cohesive but architecturally distinct structures influenced by the built character of the existing architecture and streetscape. The projects assemblage of buildings will become a collection of compatible styles, and human scaled massing, creating an authentic neigh- borhood that has evolved over time. A MODEL OF RESILIENCE The Galand sets a region-wide example for sustainable development with best practices of community planning and architectural design. The Galand is a transit oriented-development, providing connected pedestrian and bike paths to sbX station and the Metrolink Transit Center with shuttle services to various community locations beyond the site. 90 THE GALAND 7.a Packet Pg. 143 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) TRANS-ACTION TERMS & CONDI -TIONS. Ensuring a fair agreement on price and the buyer's capabili- ty of operating the business in line with their current financial goals. 7.a Packet Pg. 144 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 4.1 DEAL STRUCTURE SCG America is enthusiastic about the opportunity to partner with the City of San Bernardino to revitalize Downtown San Bernardino through the transformation of the former Carousel Mall. A new, vibrant urban center will benefit the city government and local business. The spillover effects of a rejuvenated city center will be extensive, including the enhancement of existing business, the development of additional housing, and drawing new business to this downtown neighborhood. SCG America will deposit $1,000,000 to open escrow to reserve the development rights. SCG America will cover all the costs for the entitlement and development process. It should be noted that the pre-construction cost that SCG America contributes to the project should be included in the future value of this site. The mixed-use project will be developed in phases and SCG America will get the titles from the city in phases. The subdivision plan would need to be approved during the entitlement process; the subdivision process would run parallel to the entitlement process. However, SCG America and the city should sign an exclusive development agreement before starting the entitlement process. SCG America will submit permit applications in phases. Entitlement will be completed upon planning approval. The city should consider assisting the developer by minimizing the fees in the process, including but not limited to entitlement fees and plan check fees, and simplifying the application process, such as simplifying the entitlement process and granting the developer environment impact report (EIR) exemption. The demolition cost of the subject site is significant; it is estimated to be over $8,000,000 as of the date of the proposal. For any demolition costs in the development phases, SCG America requests for the credits to be used in such ways as to decrease the developer’s future sales tax, or to be reimbursed by the city’s proposed demolition/rebuild incentive program. The demolition will help the city to clear the site, and the credit will stimulate the developer and help the developer make the entire development feasible. The detailed plan for the credit will be discussed when this development plan is accepted by the city. In the master plan, there is a planned communal area and building, which can be utilized by the city for public events and educational purpose as requested. For this proposed planned area and building, the title could be vested to the city for future management of the facilities and property tax exemption. City should provide SCG America Transient Occupancy Tax (TOT) rebate, including the TOT rebate from future short-term rental and hotel operations; property tax incentive or deduction, such as waiving special assessment. These incentives will help the developer save costs and eventually to make the entire development feasible. Meanwhile, SCG America asks for the property tax waive during each development phases, until each phase is developed. The details of the tax deduction will be presented when this development plan is accepted. SCG America will apply for Opportunity Zone for this development project if city awards the project to SCG America, and would need the city’s support for the application. With the consideration of the current market, the parking spaces in the proposed residential area are planned under current zoning code, in order to make the project more feasible, we would like to propose decreasing the required parking space for commercial and mixed use program. Because The Galand is a transit-oriented development on sbX BRT Line and within 1/4 mile of Transit Center. Furthermore, there are several parking lots and structures around the subject site, which are available for use and can support the subject site’s future plan (see section 4.2). Meanwhile, it is important to note that SCG America reserves the right of retaining the existing parking structure and partial existing shopping mall as a design option (see section 4.3 and 4.4). 92 THE GALAND 7.a Packet Pg. 145 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) P P P P P 120 Spaces 80 Spaces 581 Spaces at Designated Area Food 4 Less Lot ± 90 Spaces 635 Spaces after 5:30 pm Mon-Fri; All Day Sat-Sun & Holidays 4.2 PUBLIC PARKING FACILITIES H ST4TH ST COURT ST 3RD N ST 3RD S ST 2ND ST F STF STG STG STG DRF STG STE STE ST/±1,500 PUBLIC PARKING SPACES ARE AVAILABLE NEAR THE PROPERTY. Notes: 1. Public parking information per City of San Bernardino - Downtown Area Map & Points of Interest Index, revised by San Bernardino EDA 11/8/2011. 2. Parking counts of Food 4 Less is estimated per Google Earth map. 9301 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 04 TRANSACTION TERM & CONDITIONS02 SITE DEVELOPMENT 7.a Packet Pg. 146 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) FUTURE MIXED-USE DEVELOPMENT EXISTING PARKING STRUCTURE ±1,200 SPACES EXISTING CAROUSEL MALL EXISTING MALL ANCHOR RESIDENTIAL F&B 4.3 MASTER PLAN ALT 1 4TH ST COURT ST 3RD N ST 3RD S ST 2ND ST F STF STG STG STG DRF STG STH STE STE STD ST200 Ft0 94 THE GALAND 7.a Packet Pg. 147 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) FUTURE MIXED-USE DEVELOPMENT EXISTING PARKING STRUCTURE ±1,200 SPACES EXISTING CAROUSEL MALL RESIDENTIAL EXTEND EXISTING PEDESTRIAN BRIDGE @ OLD JC PENNY 2ND FLOOR TO RESIDENTIAL F&B F&B F&B/ RETAIL 4.4 MASTER PLAN ALT 2 4TH ST COURT ST 3RD N ST 3RD S ST 2ND ST F STF STG STG STG DRF STG STH STE STE STD ST200 Ft0 9501 LETTER OF INTRODUCTION 03 ECONOMIC ANALYSIS 04 TRANSACTION TERM & CONDITIONS02 SITE DEVELOPMENT 7.a Packet Pg. 148 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) /VISION STATEMENT THE GALAND WILL USHER IN A NEW LEVEL OF SERVICE AND EXPERIENCE. IT WILL BE A PLACE WHERE SAN BERNARDINO CAN GREET ITS RESIDENTS & VISITORS IN A DYNAMIC ENVIRONMENT THAT IS RESILIENT, BLENDING WORK, LIVE & PLAY. 7.a Packet Pg. 149 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 7.a Packet Pg. 150 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND 7.a Packet Pg. 151 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) MARKET STUDY The Galand (Former Carousel Mall) Redevelopment Project 295 Carousel Mall San Bernardino, San Bernardino County, CA 92401 DATE OF STUDY May 25, 2020 Prepared For: SCG Assets Holding Inc. 12966 Euclid Street, Suite 300 Garden Grove, CA 92840 In support of the Client’s proposal responsive to Item #3 of the Submittal Requirements Prepared By: Cushman & Wakefield Western, Inc. 900 Wilshire Blvd., Suite 2400 Los Angeles, CA 90017 7.a Packet Pg. 152 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) CUSHMAN & WAKEFIELD WESTERN, INC. 900 WILSHIRE BLVD., SUITE 2400 LOS ANGELES, CA 90017 CUSHMAN & WAKEFIELD The Galand (Former Carousel Mall) Redevelopment Project 295 Carousel Mall San Bernardino, San Bernardino County, CA 92401 7.a Packet Pg. 153 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT EXECUTIVE SUMMARY CUSHMAN & WAKEFIELD 3 Executive Summary PARCEL PROGRAM SUMMARYMULTIFAMILY** MF UNIT LIVE/WORK L/W UNIT OFFICE RETAIL HOTEL KEYS CONDOTEL COMMUNITY STRUCTURE PKG COUNTR-15.66 acres 1.44 75 units/acre 354,600 sf 347,600 sf 424 units 7,000 sf218,400 sf 636 spacesR-23.65 acres 2.17 107 units/acre 344,250 sf 320,150 sf 390 units 22,600 sf 14 units1,500 sf155,250 sf 460 spacesR-32.85 acres 1.56 76 units/acre 194,100 sf 177,000 sf 216 units 15,600 sf 10 units1,500 sf125,000 sf 324 spacesR-43.00 acres 1.47 71 units/acre 192,200 sf 174,500 sf 213 units 16,200 sf 10 units1,500 sf125,000 sf 319 spacesR-53.60 acres 2.06 101 units/acre 322,000 sf 298,700 sf 364 units 21,800 sf 13 units1,500 sf150,000 sf 429 spacesR-63.29 acres 1.28 67 units/acre 183,000 sf 182,000 sf 222 units1,000 sf112,500 sf 333 spacesC-13.27 acres 1.61228,800 sf132,000 sf 96,800 sf140,000 sf 400 spacesC-20.87 acres 1.8470,000 sf70,000 sfC-32.28 acres 3.24321,200 sf14,000 sf 307,200 sf 150 keys 200 keys120,000 sf 300 spacesC-43.65 acres 0.2540,000 sf32,000 sf8,000 sf 113,100 sf 348 spacesO-11.39 acres 0.00O-21.98 acres 0.032,400 sf1,800 sf600 sfTOTAL 35.48 acres 1.46 53 units/acre 2,252,550 sf 1,499,950 sf 1,829 units 76,200 sf 46 units 202,000 sf 158,600 sf 307,200 sf 150 keys 200 keys 8,600 sf 1,259,250 sf 3,549 spaces* Parking Structure is not included. ** Could be rental or for-sale units per market demands. R.O.W SITE AREA SUMMARYR.O.W AREAF ST2.52 acresG DR1.87 acres3RD ST1.58 acresSURROUNDING0.75 acresTOTAL 6.72 acresTOTAL SITE AREA SUMMARYAREAGROSS FARGROSS DENSITYTOTAL SITE 42.20 acres 1.23 44PARKINGFAR DENSITYPROGRAM BREAKDOWNPLANNING AREA AREATOTAL PROGRAM BUILDING AREA*RETAIL/F&B/ENTERTAINMENT/FINTNESS DETAILED PROGRAMPLANNING AREA RETAIL F&B ENTERTAINMENT FITNESS CENER TOTALR-13,000 sf 4,000 sf 7,000 sfR-21,500 sf1,500 sfR-31,500 sf1,500 sfR-41,500 sf1,500 sfR-51,500 sf1,500 sfR-61,000 sf1,000 sfC-120,800 sf 12,000 sf24,000 sf40,000 sf96,800 sfC-314,000 sf14,000 sfC-412,000 sf 20,000 sf32,000 sfO-21,800 sf1,800 sfTOTAL39,800 sf 54,800 sf24,000 sf40,000 sf 158,600 sfPARKING SUMMARYRESIDENTIAL COMMERICAL SUBTOTALR-1636 spacesR-2460 spacesR-3324 spacesR-4319 spacesR-5429 spacesR-6333 spacesC-1400 spacesC-3300 spacesC-4348 spaces F ST36 spaces G ST25 spaces3RD ST102 spacesTOTAL2,501 spaces 1,048 spaces 3,549 spaces 163 spaces 3,712 spacesLOTSTREETSTRUCTURETOTAL PARKING7.aPacket Pg. 154Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer THE GALAND REDEVELOPMENT EXECUTIVE SUMMARY CUSHMAN & WAKEFIELD 4 BASE SITE PLAN 7.aPacket Pg. 155Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer THE GALAND REDEVELOPMENT EXECUTIVE SUMMARY CUSHMAN & WAKEFIELD 5 Residential Component Rental Market Highlights The proposed building area for the residential component is 1,576,150 gross square feet with a total of 1,875 units (1,829 multifamily and 46 live/work), which equates to 841 square feet per unit. The average unit size of 841 square feet is reasonable and market oriented. The residential product will be delivered in six phases. The smallest residential planning area will contain 182,000 square feet and 222 units. The largest residential planning area will contain 347,600 square feet and 424 units. A summary of the residential area by planning area is shown in the following table. The 424 residential units comprised of Planning Area R-1 are currently proposed as for-sale condominium product. Retail and food & beverage uses that support the local tenant base are included in each of the residential development phases. Ideally sized retail spaces range between 1,500± and 5,000± square feet to support restaurants, community-serving retailers and local businesses. The San Bernardino submarket was hard hit housing crash in the last decade and many single-family homes became rentals. Many of those have since returned to the homeowner market. Similar to apartment rents, single-family homeownership remains an accessible option for households priced out of more expensive markets, particularly in Los Angeles County. Recent home appreciation in the San Bernardino submarket has been stronger than submarkets in Riverside County, and the lure of less expensive homeownership is fading. Median home prices in the submarket range from around $300,000 in the Cities of San Bernardino and Rialto to about $420,000 in Redlands. This trend has driven up demand for higher quality rental product. Apartment vacancies have been steady at around 4% since mid-2015, although recent deliveries have caused a short-term spike in the vacancy rate. Stabilized vacancy is 5% and projections are based on historical levels. The market has demonstrated an acceptance of luxury product in recent years. The 300-unit Circa 2020, features luxurious amenities that mirror new apartments in neighboring Greater Ontario/Rancho Cucamonga submarket. Asking rents were roughly 20% above the 4 & 5-Star average in the submarket and the property stabilized rapidly. Rent growth in the San Bernardino Submarket continued to outpace the Inland Empire average through 20Q1, but growth is forecasted to level. Rent escalations had been strongest in apartments with more than 500 units, where rent growth outpaced the submarket average by roughly 400 basis points in 20Q1. All of these apartments were developed in the PLANNING AREA MULTIFAMILY** LIVE/WORK TOTAL MF UNIT L/W UNIT TOTAL R-1 347,600 sf 347,600 sf 424 units 424 units R-2 320,150 sf 22,600 sf 342,750 sf 390 units 14 units 404 units R-3 177,000 sf 15,600 sf 192,600 sf 216 units 10 units 225 units R-4 174,500 sf 16,200 sf 190,700 sf 213 units 10 units 223 units R-5 298,700 sf 21,800 sf 320,500 sf 364 units 13 units 377 units R-6 182,000 sf 182,000 sf 222 units 222 units TOTAL 1,499,950 sf 76,200 sf 1,576,150 sf 1,829 units 46 units 1,875 units 7.a Packet Pg. 156 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT EXECUTIVE SUMMARY CUSHMAN & WAKEFIELD 6 1990s. Meanwhile, rents in apartments with fewer than 50 units trailed the submarket average by roughly 250 basis points that same quarter. Prospects for development will continue to compete with new development in the Greater Ontario/Rancho Cucamonga Submarket, where most new supply in the metro has been developed during this cycle. Investor appetite for apartments in San Bernardino remains high. Sales volume topped $300 million in 2019 for the fourth time in five years. Roughly 5% of inventory traded hands, and yet no 4 or 5-Star apartments sold over the year. The bulk of volume is derived from value-add deals. Condominium Market Highlights Overall unit sizes for comparable condominium product range from 1,059 square feet to 1,825 square feet, which is larger than the proposed average unit size at The Galand. Predominant pricing ranges from approximately $325,000 to $425,000 per unit and $250-$350 per square foot. Unit mixes at the comparables generally demonstrate a strong tendency toward 2BR units, with notable proportions of 1BR and 3BR units as well. The majority of the existing inventory in the San Bernardino market is low-rise, walk-up townhome-style product. There are few, if any, condominium projects higher than 3-stories in the market area. The predominant range in average absorption for comparable condominium product is 3.0 to 6.0 percent of the total inventory per month. Retail Component The total amount of programmed retail space is comprised of the following use types: 158,600 GSF is the total current programmed amount of retail space, which is reasonable and market oriented on market demand for retail and the future outlook for retail, which is one that is rapidly shifting and one of a downscaled bricks-and-mortar inventory. Gym – a full-service gym is a desirable amenity to all project components; residents, office workers, hotel guests and residents of the community. Full-service fitness centers are in excess of 30,000 square feet. A club concept offering cardio equipment, free weights and other weight training machines, group exercise classes, food and beverage and childcare is programmed for The Galand. RETAIL/F&B/ENTERTAINMENT/FINTNESS DETAILED PROGRAM PLANNING AREA RETAIL F&B ENTERTAINMENT FITNESS CENER TOTAL R-1 3,000 sf 4,000 sf 7,000 sf R-2 1,500 sf 1,500 sf R-3 1,500 sf 1,500 sf R-4 1,500 sf 1,500 sf R-5 1,500 sf 1,500 sf R-6 1,000 sf 1,000 sf C-1 20,800 sf 12,000 sf 24,000 sf 40,000 sf 96,800 sf C-3 14,000 sf 14,000 sf C-4 12,000 sf 20,000 sf 32,000 sf O-2 1,800 sf 1,800 sf TOTAL 39,800 sf 54,800 sf 24,000 sf 40,000 sf 158,600 sf 7.a Packet Pg. 157 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT EXECUTIVE SUMMARY CUSHMAN & WAKEFIELD 7 The retail components of mixed-use developments in the market typically have tenant mixes that are largely food and beverage (restaurant) tenants with soft goods tenants typically occupying less than 50 percent of the total space. The tenant mix of the retail component of The Galand is in line with market norms. Retail and F&B uses that support the local customer base are included in each of the multi-family phases. Rents in the submarket have been in line with the metro, growing by 2.8% over the past year compared to 2.7% in the Inland Empire. Rents remain more than 15% below their pre-recession peak in 2007. Nevertheless, transaction volume in San Bernardino is near its all-time high. Office Component The Galand will have 202,000 square feet of Class A office located within two buildings at the northeastern portion of the site fronting W. 4th Street and N. E Street. The office component represents 10 percent of The Galand project. Office buildings will be three and four stories in height. The office is to be built as part of a later phase of development that will also include retail and hotel components. Office demand for The Galand would be primarily generated from tenants which are ancillary to city government. For this location, higher parking ratios are a major factor in prospective tenant’s decision to locate at the project. The project’s civic center location bodes well for the typical user in the submarket. The Galand’s office component has the ability to create a competitive advantage over the existing product, which is primarily comprised of older office product. San Bernardino's vacancy rate has compressed over the longer term to 8.9%, partly a product of limited supply additions, coupled with slow, but steady business expansions throughout this cycle. Government agencies have historically been among the most prominent office users in San Bernardino, Rents in San Bernardino are among the lowest in the Inland Empire. Hotel Component The market supports a hotel concept of around 150-rooms. However, in a long-term master-planned redevelopment like The Galand, market shifts could eventually support a larger hotel or a hotel with residential units incorporated. The programming for The Galand incorporates this optionality. Amenities in the 150-room option include a limited food and beverage operation, business center, swimming pool, exercise room, guest laundry, and 1,000 - 3,000 square feet of meeting space. 7.a Packet Pg. 158 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT EXECUTIVE SUMMARY CUSHMAN & WAKEFIELD 8 Proformas – Hypothetical As If Stabilized SUMMARY OF REVENUE AND EXPENSES - RESIDENTIALREVENUE Annual $/UnitPotential Rent $40,731,750 $21,724Model/Emp Unit ($203,659) -$109RUBS (50% of Utils) $1,009,339 $538Other $1,875,000 $1,000POTENTIAL GROSS REVENUE $43,412,430 $25,328Vacancy and Collection Loss (7.0%) ($3,038,870) -$1,773EFFECTIVE GROSS REVENUE $40,373,560 $23,555OPERATING EXPENSES0Insurance $403,736 $215Utilites $2,018,678 $1,077R&M $605,603 $323Turnover $282,615 $151Payroll $2,422,414 $1,292Management Fee $1,009,339 $538G&A $403,736 $215Marketing $605,603 $323Contract $1,211,207 $646Reserves $322,988 $172Total Operating Expenses $2,543,534 $1,357Real Estate Taxes $8,428,924 $4,495TOTAL EXPENSES $10,972,458 $5,852NET OPERATING INCOME $29,401,102 $15,681Compiled by Cushman & Wakefield Western, Inc.SUMMARY OF REVENUE AND EXPENSES - OFFICEREVENUE Annual $/SF Base Rental Revenue $6,060,000 $30.00Expense Reimbursements $0 $0.00POTENTIAL GROSS REVENUE $6,060,000 $30.00Vacancy and Collection Loss (7.0%) ($424,200) ($2.10)EFFECTIVE GROSS REVENUE $5,635,800 $27.90OPERATING EXPENSES0All Controllable $1,010,000 $5.00Insurance $202,000 $1.00Management Fees @ 2.0% EGI $112,716 $0.56Total Operating Expenses $1,324,716 $6.56Real Estate Taxes $761,572 $3.77TOTAL EXPENSES $2,086,288 $10.33NET OPERATING INCOME $3,549,512 $17.57Compiled by Cushman & Wakefield Western, Inc.SUMMARY OF REVENUE AND EXPENSES - RETAILREVENUE Annual $/SF Retail/Restaurant $3,913,800 $33.00Gym $840,000 $21.00Base Rental Revenue $4,753,800 $29.97Expense Reimbursements $3,433,045 $21.65POTENTIAL GROSS REVENUE $8,186,845 $51.62Vacancy and Collection Loss (5.0%) ($409,342) ($2.58)EFFECTIVE GROSS REVENUE $7,777,502 $49.04OPERATING EXPENSES0CAM Expenses $1,903,200 $12.00Insurance $237,900 $1.50Management Fees @ 3.5% EGI $272,213 $1.72Total Operating Expenses $2,413,313 $15.22Real Estate Taxes $1,019,732 $6.43TOTAL EXPENSES $3,433,045 $21.65NET OPERATING INCOME $4,344,458 $27.39Compiled by Cushman & Wakefield Western, Inc.7.aPacket Pg. 159Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer THE GALAND REDEVELOPMENT EXECUTIVE SUMMARY CUSHMAN & WAKEFIELD 9 Fiscal Year:Stabilized Days in Year:365 Number of Rooms:150 Rooms Available:54,750 Occupied Rooms:42,158 Occupancy:77.0% Average Rate:$146.71 RevPAR:$112.97 $ % (000's) Gross PAR POR REVENUES Rooms $6,185 89.9% $41,233 $146.71 Food & Beverage 492 7.2% 3,280 11.67 Other Operated Departments 148 2.2% 987 3.51 Miscellaneous Income 49 0.7% 327 1.16 Total Revenues 6,874 100.0% 45,827 163.06 DEPARTMENTAL COSTS Rooms 1,662 26.9% 11,080 39.42 Food & Beverage 394 80.1% 2,627 9.35 Other Operated Departments 22 14.9% 147 0.52 Total Departmental Costs 2,078 30.2% 13,853 49.29 DEPARTMENTAL INCOME 4,796 69.8% 31,973 113.76 UNDISTRIB. OPERATING EXPENSES Administrative & General 433 6.3% 2,887 10.27 Marketing 497 7.2% 3,313 11.79 Franchise Fees 340 4.9% 2,267 8.06 Property Operations & Maintenance 215 3.1% 1,433 5.10 Utility Costs 204 3.0% 1,360 4.84 Information & Telecommunications Systems 86 1.3% 573 2.04 Total Undistrib. Operating Expenses 1,775 25.8% 11,833 42.10 MANAGEMENT FEES Base Management Fee 206 3.0% 1,373 4.89 Total Management Fees 206 3.0% 1,373 4.89 GROSS OPERATING PROFIT 2,815 41.0% 18,767 66.77 FIXED CHARGES Property Taxes 342 5.0% 2,278 8.11 Insurance 140 2.0% 933 3.32 Reserve for Replacement 275 4.0% 1,833 6.52 Total Fixed Charges 757 11.0% 5,045 17.95 NET OPERATING INCOME 2,058 30.0% 13,722 48.82 Stabilized Year ProForma - Carousel Mall Hotel - San Bernardino, CA 7.a Packet Pg. 160 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT EXECUTIVE SUMMARY CUSHMAN & WAKEFIELD 10 COMMUNITY BENEFITS As proposed, The Galand will yield significant benefits for the City of San Bernardino, including: 2,251,550 square feet of mixed-use space over 5 phases $753,000,000 total investment in San Bernardino $15.1 million state and local tax revenue 562 permanent jobs 1,875 new residential units A total 3.37 acres of open space Planned communal area to be utilized by the city for public events and educational purposes, comprised of an 8,000 square foot community building with outdoor community garden providing event space, shaded seating, resting place and a basketball court. 7.a Packet Pg. 161 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT EXECUTIVE SUMMARY CUSHMAN & WAKEFIELD 11 Feasibility Based on our analysis, the overall development concept of The Galand is considered economically feasible under current market conditions. The level of feasibility varies between the individual program elements, with the residential component (as rental apartments) being most economically feasible, followed by the retail and office components. The market currently supports a hotel concept of around 150 rooms. However, in a long-term master- planned redevelopment like The Galand, market shifts could eventually support a larger hotel or a hotel with residential units incorporated. The programming for The Galand incorporates this optionality. Total estimated investment = $753,000,000 Aggregate proforma values of the individual program elements = $817,000,000 Retail Component $51,220,000 Hotel Component (F&B/Other)$640,000 Total Retail Sales Revenues $51,860,000 California 6.00% $3,111,600 San Bernardino County 0.25% $129,650 City of San Bernardino 0.25% $129,650 San Bernardino Co Local Tax 1.00% $518,600 San Bernardino County District Tax 0.50%$259,300 Total Retail Sales Tax Revenues 8.00% $4,148,800 Estimated Total Annual Taxable Revenues - Hotel $6,185,000 San Bernardino County Transient Occupancy Tax Rate 7.00% Total Transient Occupancy Tax Revenues $432,950 Taxable Values Residential Compoent $653,000,000 Retail Component $79,000,000 Office Component $59,000,000 Hotel Component $26,000,000 Total Taxable Value $817,000,000 Property Tax Rate - San Bernardino County California 1.0000% $8,170,000 Local 0.2908%$2,375,836 Total Property Tax Revenues 0.012908 $10,545,836 Estimated Total Annual Tax Revenues - State $11,281,600 Estimated Total Annual Tax Revenues - Local $3,845,986 ESTIMATED ANNUAL STATE AND LOCAL TAX REVENUES Estimated Transient Occupancy Tax Revenues Estimated Retail Sales Tax Revenues Estimated Retail Sales Revenues Estimated Property Tax Revenues Space Use Type Average SF Per Worker Galand Project Area Jobs Created Retail (other than mall) 1,450 102,800 71 Food & Beverage 567 54,800 97 Office 600 202,000 337 Lodging 2,541 135,000 53 Public assembly 1,800 8,600 5 Total Jobs Created:562 Space Utilization Per Job Rates* * U.S. (EIA) Survey of Commercial Buildings - December 2016 Permanent Jobs Created 7.a Packet Pg. 162 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 12 Residential Market Overview Key Indicators - Residential Source: CoStar 1Q20 San Bernardino Multi-Family Submarket Report Source: CoStar 1Q20 San Bernardino Multi-Family Submarket Report 7.a Packet Pg. 163 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 13 Source: CoStar 1Q20 San Bernardino Multi-Family Submarket Report Developers have demonstrated limited interest in the San Bernardino Submarket for much of this cycle, with the exception of the city of Redlands. The UCR Group developed The Crossing at Redlands, one of the largest recent deliveries with 340 units. Also, in Redlands, Majestic Realty developed The Summit with 281 units. The Lytle Development Company, meanwhile, will test the waters in the City of San Bernardino with the 298-unit Signature at Valley Center. Upon completion, this will be the first major delivery in the city since the early 1990s. 7.a Packet Pg. 164 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 14 Source: CoStar 1Q20 San Bernardino Multi-Family Submarket Report Source: CoStar 1Q20 San Bernardino Multi-Family Submarket Report The UCR's Group delivered The Crossings at Redlands in late 2019, with 340 units, while the Lytle Development Company's Signature at Valley Center is under construction with 298 units. The vacancy rate has recently expanded because these communities are in lease-up. However, vacancies are projected to remain elevated over the next year in CoStar's Base Case forecast. 7.a Packet Pg. 165 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 15 Source: CoStar 1Q20 San Bernardino Multi-Family Submarket Report Rent growth in the San Bernardino Submarket were robust from 2015 to 2019 and continued to outpace the Inland Empire average through 20Q1, but growth is expected to sharply decelerate as a result of the coronavirus pandemic and the state's order to shelter in place. While local fundamentals have improved, the recent global coronavirus pandemic and social distancing policies are rapidly changing the economic landscape, with store and business closures putting immediate strain on the labor force. Job growth has historically correlated inversely with vacancies, so job losses will likely lead to lower apartment demand. Source: CoStar 1Q20 San Bernardino Multi-Family Submarket Report 7.a Packet Pg. 166 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 16 Construction Source: CoStar 1Q20 San Bernardino Multi-Family Submarket Report Source: CoStar 1Q20 San Bernardino Multi-Family Submarket Report Developers have demonstrated limited interest in the San Bernardino Submarket for much of this cycle, with the exception of the city of Redlands, which added 621 units in 2019. The UCR Group developed The Crossing at Redlands with 340 units and Majestic Realty developed The Summit with 281 units. The Lytle Development Company will test the waters in the City of San Bernardino with the 298-unit Signature at Valley Center. Upon completion, this will be the first major delivery in the city since the early 1990s. 7.a Packet Pg. 167 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 17 Source: CoStar 1Q20 San Bernardino Multi-Family Submarket Report 7.a Packet Pg. 168 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 18 Investment Activity San Bernardino Submarket Source: CoStar 1Q20 San Bernardino Multi-Family Submarket Report 7.a Packet Pg. 169 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 19 Rental Survey – San Bernardino and Surrounding Areas COMPETITIVE APARTMENT PROJECTS AVG. AVG. AVG. 1 The Crossings at Redlands 340 305,545 899 2019 4 20.0% Studio 475 $1,454 $3.06 26000 W Lugonia Ave (lease-up) 1BR/1BA 790 $1,728 $2.19 Redlands, CA 2BR/2BA 1,060 $2,285 $2.16 2 Circa 2020 306 298,608 976 2015 3 97.1% Studio $ $0.00 27000 W Lugonia Ave 1BR/1BA 836 $1,780 $2.13 Redlands, CA 2BR/2BA 1,130 $2,148 $1.90 3 The Enclave at Homecoming Terra Vista 306 426,887 1,395 2014 2 95.1% Studio $ $0.00 11755 Malaga Dr 1BR/1BA 934 $1,995 $2.14 Rancho Cucamonga, CA 2BR/2BA 1,327 $2,276 $1.72 3BR/2BA 1,752 $2,722 $1.55 4BR/2BA 2,030 $2,997 $1.48 4 Vistara 298 284,642 955 2016 3 91.6% Studio $ $0.00 3410 E 4th St 1BR/1BA 792 $1,842 $2.33 Ontario, CA 2BR/2BA 1,076 $2,212 $2.06 5 The Summit 281 247,815 882 2019 3 48.4% Studio $ $0.00 27431 San Bernardino Ave (lease-up) 1BR/1BA 755 $1,814 $2.40 Redlands, CA 2BR/2BA 994 $2,144 $2.16 6 The Core at Sycamore Highland 275 269,662 981 2018 3 76.7% Studio $ $0.00 5946 Sycamore Canyon Blvd (lease-up) 1BR/1BA 757 $1,845 $2.44 Riverside, CA 2BR/2BA 1,121 $2,334 $2.08 7 Sorano 266 266,076 1,000 2019 2 32.7% Studio $ $0.00 12406 Clark St (lease-up) 1BR/1BA 774 $1,893 $2.45 Moreno Valley, CA 2BR/2BA 1,050 $2,105 $2.00 8 Vintage at Snowberry 224 175,472 783 2011 2 98.2% Studio $ $0.00 8402 Colorado Ave 1BR/1BA 703 $717 $1.02 Riverside, CA 2BR/2BA 903 $860 $0.95 Compiled by Cushman & Wakefield, Inc. No. PROPERTY NAME ADDRESS, CITY, STATE NO. OF UNITS NET BLDG AREA AVG. UNIT SIZE YEAR BUILT PROPERTY INFORMATION BEDS/BATHS UNIT SIZE (SF) QUOTED RENT PER MONTH QUOTED RENT $/SF/ MONTHNO. OF STORIES OCC. RATE (%) 7.a Packet Pg. 170 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 20 COMPETITIVE APARTMENT PROJECTS (CONTINUED) AVG. AVG. AVG. 9 The Trails at Canyon Crest 216 201,766 934 2019 3 41.2% Studio $ $0.00 5377 Quail Run Rd (lease-up) 1BR/1BA 765 $1,844 $2.41 Riverside, CA 2BR/2BA 1,072 $2,207 $2.06 10 Mission Lofts 212 149,358 705 2019 4 35.9%Studio 462 $1,629 $3.53 3050 Mission Inn Ave (lease-up) 1BR/1BA 658 $1,746 $2.65 Riverside, CA 2BR/2BA 908 $2,265 $2.49 11 Sorano phase II 196 196,942 1,005 2020 43.4%Studio $ $0.00 12406 Clark St (lease-up) 1BR/1BA 775 $1,876 $2.42 Moreno Valley, CA 2BR/2BA 1,056 $2,113 $2.00 12 Santa Barbara 192 314,963 1,640 2012 3 97.9%Studio $ $0.00 10855 Church St 1BR/1BA 1,003 $2,216 $2.21 Rancho Cucamonga, CA 2BR/2BA 1,443 $2,499 $1.73 3BR/2BA 1,817 $2,864 $1.58 4BR/2BA 1,992 $3,069 $1.54 13 Arte Apartments 182 238,622 1,311 2019 4 84.6%Studio $ $0.00 10130 Foothill Blvd 1BR/1BA 785 $1,987 $2.53 Rancho Cucamonga, CA 2BR/2BA 1,164 $2,445 $2.10 STATISTICS (Excluding Subject) 182 149,358 705 2011 2 20.0%Studio Units 469 $1,542 $3.29 340 426,887 1,640 2020 4 98.2%One Bedroom Units 794 $1,791 $2.25 253 259,720 1,036 2017 3 66.4%Two Bedroom Units 1,100 $2,146 $1.95 3,294 3,376,358 13,466 26220 36 Three Bedroom Units 1,428 $2,702 $1.92 Compiled by Cushman & Wakefield, Inc. PROPERTY INFORMATION No. PROPERTY NAME ADDRESS, CITY, STATE NO. OF UNITS NET BLDG AREA AVG. UNIT SIZE YEAR BUILT NO. OF STORIES OCC. RATE (%) BEDS/BATHS UNIT SIZE (SF) QUOTED RENT PER MONTH QUOTED RENT $/SF/ MONTH Low: High: Average: Totals: 7.a Packet Pg. 171 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 21 Multi-Family Absorption Rates The following summarizes average unit absorption to date at the most directly competitive recently developed apartment projects throughout the Inland Empire, which were considered in developing our overall absorption projection. Greatest emphasis was placed on the performance of the four recently developed Class A projects – namely, The Summit, The Core at Sycamore Highland, Arte Apartments, and The Paseos at Ontario. A summary of this information is presented in the table below Compiled by Cushman & Wakefield, Inc. Multifamily residential pre-leasing in this market is typical. Approximately, 15-20% or less of the units are pre- committed. The market data for new construction indicates a range in average absorption from 10 to 24.5 units per month, with an average absorption rate of 15.5 units per month. The four comparable Class A projects, which are considered to be most similar to The Galand’s proposed residential product, The Galand market data for Class A product, range in average absorption from 17.8 to 24.5 units per month, with an average absorption rate of 18.9 units per month. Based on this market data, we concluded an average absorption of 18 units per month (216 units per year) is considered reasonable, indicating an overall absorption period for 1,875 units of approximately nine years. Project No. of Units Ave. Unit Size No. of Stories Class Date Opened Current Occupancy Timeframe Average Aborption Units Per Month Absorption as % of Units The Summit 27431 San Bernardino Ave Redlands, CA 281 882 3 A Oct‐19 52.3% as of 4/20 6 months 24.5 units per month 8.7% The Core at Sycamore Highland 5946 Sycamore Canyon Blvd Riverside, CA 275 981 3 A Nov‐18 76.7% as of 3/20 16 months 13.2 units per month 4.8% Arte Apartments 10130 Foothill Blvd Rancho Cucamonga, CA 182 973 4 A Aug‐19 87.4% as of 4/20 8 months 19.9 units per month 10.9% The Paseos at Ontario 2615 E. Date Palm Paseos Ontario, CA 610 883 3 A Sep‐18 55.4% as of 4/20 19 months 17.8 units per month 2.9% The Crossings at Redlands 26000 W Lugonia Ave Redlands, CA 340 899 4 B Oct‐19 20.6% as of 4/20 6 months 11.7 units per month 3.4% The Trails at Canyon Crest 5377 Quail Run Rd Riverside, CA 216 934 3 B Jul‐19 47.7% as of 4/20 9 months 11.5 units per month 5.3% Mission Lofts 3050 Mission Inn Ave Riverside, CA 212 705 4 B Aug‐19 37.7% as of 4/20 8 months 10 units per month 4.7% Average Absorption: 15.5 units per month 5.8% Class A Product: 18.9 units per month 6.8% UNIT ABSORPTION AND TIMING 7.a Packet Pg. 172 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 22 Affordability Analysis The following summarizes households within San Bernardino County segmented by income levels to determine the percentage of households that can meet the estimated average monthly rent for the proposed residential component. For a household to be able to pay the estimated average monthly rent of $1,808 for a subject unit, its income must exceed $77,486 (based on 28% of income spent on housing). Higher income households ($150,000+) are not likely to rent in the subject market segment. Household Income No. of Households % of Total % Capture % Total Income Less than $15,000 70,028 10.62% x 0%0.00% Income $15,000 - $24,999 63,506 9.63% x 0%0.00% Income $25,000 - $34,999 60,461 9.17% x 0%0.00% Income $35,000 - $49,999 84,151 12.76% x 0%0.00% Income $50,000 - $74,999 127,081 19.27% x 0%0.00% Income $75,000 - $99,999 91,144 13.82% x 100% 13.82% Income $100,000 - $124,999 62,808 9.52% x 100% 9.52% Income $125,000 - $149,999 35,552 5.39% x 100% 5.39% Income $150,000 - $199,999 38,062 5.77% x 0%0.00% Income $200,000 - $249,999 11,602 1.76% x 0%0.00% Income $250,000 - $499,999 9,495 1.44% x 0%0.00% Income $500,000 and more 5,579 0.85% x 0%0.00% 28.74% Average Unit Size 841 Estimated Ave. Monthly $2.15 Estimated Ave. Monthly Rent $1,808 Estimated Min. Qualifying $77,486 7.a Packet Pg. 173 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 23 Marketability Study The following marketability study examines the marketability of the residential component, focusing on the analysis of the underlying factors that affect the economic well-being of the real estate such as employment; population; household income, expenditure amounts, and preferences; and spatial growth patterns, which are segmented to the subject property’s submarket and then to the subject property. SAN BERNARDINO COUNTY - MULTIFAMILYCurrentYr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8 Yr. 9 Yr. 10 Yr. 11 Yr. 12 Yr. 13MARKET DEMAND FORECAST1 Population2,163,973 2,176,091 2,188,277 2,200,532 2,212,855 2,225,247 2,237,708 2,250,239 2,262,841 2,275,512 2,288,255 2,301,070 2,313,956 2,326,914 2 Average household size3.281 3.279 3.277 3.276 3.274 3.272 3.270 3.268 3.266 3.264 3.262 3.260 3.258 3.256 3 Households659,471 663,560 667,674 671,813 675,979 680,170 684,387 688,630 692,899 697,195 701,518 705,867 710,244 714,647 4 Renter-occupied ratio40.9%40.9% 40.9% 40.9% 40.9% 40.9% 40.9% 40.9% 40.9% 40.9% 40.9% 40.9% 40.9% 40.9%5 Renter-occupied households270,047 271,721 273,406 275,101 276,807 278,523 280,250 281,987 283,736 285,495 287,265 289,046 290,838 292,641 6 Income qualifying households28.8%28.8% 28.8% 28.8% 28.8% 28.8% 28.8% 28.8% 28.8% 28.8% 28.8% 28.8% 28.8% 28.8%7 Occupied apt. units (demand)77,639 78,120 78,604 79,092 79,582 80,075 80,572 81,071 81,574 82,080 82,589 83,101 83,616 84,134 8 Adjustment for frictional vacancy97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0%9 Adjusted demand (line 7 ÷ 8)80,040 80,536 81,035 81,538 82,043 82,552 83,064 83,579 84,097 84,618 85,143 85,671 86,202 86,736 MARKET RESIDUAL DEMAND10 Year Starting Competitive Supply78,707 78,707 80,111 80,771 81,271 81,581 82,166 82,666 83,166 83,666 84,166 84,666 85,166 85,666 11 Forcasted new apt. units - 1,404 660 500 310 585 500 500 500 500 500 500 500 500 12 Forecasted apartment supply78,707 80,111 80,771 81,271 81,581 82,166 82,666 83,166 83,666 84,166 84,666 85,166 85,666 86,166 13 Residual demand (line 9 - 12) 1,333 425 264 267 462 386 398 413 431 452 477 505 536 570 14 Forecasted apt. occupancy (line 7÷12)98.6%97.5% 97.3% 97.3% 97.5% 97.5% 97.5% 97.5% 97.5% 97.5% 97.5% 97.6% 97.6% 97.6%SUBJECT CAPTURE ESTIMATESubject Pro Rata Share-----0.3% 0.5% 0.8% 1.0% 1.3% 1.5% 1.8% 2.0% 2.2%15 Estimated subject actual capture rate (rounded) - - - - - 0.3% 0.5% 0.8% 1.0% 1.3% 1.5% 1.7% 2.0% 2.1%15 Estimated subject actual capture rate (rounded)-- - - - 0.3% 0.5% 0.7% 1.0% 1.2% 1.4% 1.7% 1.9% 2.1%16 Estimated subject occupanied-units----- 206 413 619 826 1,032 1,238 1,445 1,651 1,799 17 Estimated subject occupancy rate -- - - - 96.0% 96.0% 96.0% 96.0% 96.0% 96.0% 96.0% 95.9% 95.9%Fundamental Analysis - Submarket (Segmentation Method)7.aPacket Pg. 174Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer METROPOLIS R2 (PHASE IIA) RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 24 Financial Analysis REVENUE Annual $/Unit % of EGI Potential Rent $40,731,750 $21,724 Model/Emp Unit ($203,659) -$109 RUBS (50% of Utils) $1,009,339 $538 Other $1,875,000 $1,000 POTENTIAL GROSS REVENUE $43,412,430 $25,328 Vacancy and Collection Loss (7.0%) ($3,038,870) -$1,773 EFFECTIVE GROSS REVENUE $40,373,560 $23,555 100.00% OPERATING EXPENSES 0 Insurance $403,736 $215 1.00% Utilites $2,018,678 $1,077 5.00% R&M $605,603 $323 1.50% Turnover $282,615 $151 0.70% Payroll $2,422,414 $1,292 6.00% Management Fee $1,009,339 $538 2.50% G&A $403,736 $215 1.00% Marketing $605,603 $323 1.50% Contract $1,211,207 $646 3.00% Reserves $322,988 $172 0.80% Total Operating Expenses $2,543,534 $1,357 23.00% Real Estate Taxes $8,428,924 $4,495 20.88% TOTAL EXPENSES $10,972,458 $5,852 43.88% NET OPERATING INCOME $29,401,102 $15,681 72.82% Compiled by Cushman & Wakefield Western, Inc. SUMMARY OF REVENUE AND EXPENSES - HYPOTHETICAL AS IF STABILIZED - RESIDENTIAL DIRECT CAPITALIZATION METHOD $29,401,102 $15,681 Value $/Unit $691,790,632 $368,955 $653,357,819 $348,458 $618,970,565 $330,118 Indicated Stabilized Value $653,357,819 $348,458 $653,000,000 $348,267 Compiled by Cushman & Wakefield Western, Inc. NET OPERATING INCOME Sensitivity Analysis (0.25% OAR Spread) Based on Low-Range of 4.25% Based on Most Probable Range of 4.50% Based on High-Range of 4.75% Rounded to nearest $1,000,000 7.a Packet Pg. 175 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) METROPOLIS R2 (PHASE IIA) RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 25 Condominium Sales Summary - San Bernardino County Condominium sales data since 2016 Located within San Bernardino County Year Built/Constructed of 2000 or later Recorded on TheMLS.com NOTE: The data presented above does not capture all sales activity for the San Bernardino market; only the sales that are listed and/or recorded with The MLS. The data presented above indicates the following: Consistent annual growth in PSF and unit pricing, ranging from approximately 1.5%-6.0% per year Significant gains in overall sales activity/volume over the analysis period Due to somewhat limited sample size, difficult to garner meaningful information from 2020 YTD data Year # of Sales Y-O-Y Δ Avg DOM Total Sales Volume ($) Avg $ Per Unit Y-O-Y Δ Avg $ PSF Y-O-Y Δ Overall Δ Since 2016 Median $ PSF Y-O-Y Δ Overall Δ Since 2016 2020 YTD 134 -- 47 $58,838,282 $439,092 5.9% $264.77 1.4% 14.6% $271.00 4.6% 18.3% 2019 445 28.2% 48 $184,550,722 $414,721 1.7% $261.12 1.4% 13.0% $259.00 -0.8% 13.1% 2018 347 12.3% 34 $141,518,878 $407,835 7.5% $257.47 5.8% 11.4% $261.00 7.4% 14.0% 2017 309 67.9% 32 $117,260,107 $379,483 4.2% $243.46 5.4% 5.4% $243.00 6.1%6.1% 2016 184 -- 55 $67,019,440 $364,236 -- $231.02 -- -- $229.00 -- -- Notes: Condo sales on The MLS since 1/1/2016; San Bernardino County area; year built 2000+; 2020 YTD data thru 5/12/2020 Compiled by Cushman & Wakefield Western, Inc. SUMMARY OF CONDOMINIUM SALES IN SAN BERNARDINO COUNTY 7.a Packet Pg. 176 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) METROPOLIS R2 (PHASE IIA) RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 26 Comparable Condominium Projects Competitive Condominiums TotalProject Name No. of YearDOM Min Max AvgLocation Units Built Min Max Avg Min Max Avg Avg Low High Sqft Sqft Sqft1Artisan Collection 288 2006$254 $254 $254 $254 $302 $277 28 $0.06 $0.20 1,090 1,378 1,25813100-13300 Copra AvenueChino, CA2Arrow Station 99 2015/2018N/A N/A N/A $274 $303 $290 32 $0.05 $0.20 1,166 1,410 1,2898823-8847 Jacaranda AvenueMontclair, CA3Providence 120 2015N/A N/A N/A $199 $274 $232 43 $0.07 $0.22 1,224 1,787 1,51516001 Chase RoadFontana, CA4Metro Walk 30 2018N/A N/A N/A $282 $365 $340 27 $0.17 $0.24 1,302 1,825 1,389803-813 N Dalton AvenueAzusa, CA5Victoria Gardens 100 2007N/A N/A N/A $267 $302 $284 57 $0.22 $0.22 1,436 1,458 1,44712427-12487 Canal DriveRancho Cucamonga, CA6Celamonte 119 2007-2010$305 $305 $305 $259 $373 $304 29 $0.18 $0.28 1,059 1,506 1,35317871 Shady View DriveChino Hills, CATOTAL: 756 MIN: $254 $254 $254 $199 $274 $232 27 $0.05 $0.20 1,059 1,378 1,258AVERAGE: 126 MAX: $305 $305 $305 $282 $373 $340 57 $0.22 $0.28 1,436 1,825 1,515MEAN: $280 $280 $280 $256 $320 $288 36 $0.12 $0.23 1,213 1,561 1,375Compiled by Cushman and Wakefield Western, Inc.Recent SalesSold Prices $/SF Homeowner's DuesSUMMARY OF LISTINGS AND SALESCOMPARABLE CONDOMINIUM PROJECTSCurrent ListingsListing Prices $/SFRecent Sales Statistics7.aPacket Pg. 177Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer METROPOLIS R2 (PHASE IIA) RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 27 COMPARABLE CONDOMINIUM PROJECTS 7.aPacket Pg. 178Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer METROPOLIS R2 (PHASE IIA) RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 28 SELECTED CONDOMINIUM COMPARABLES Artisan Collection Arrow Station Providence Metro Walk Victoria Gardens Celamonte 7.a Packet Pg. 179 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) METROPOLIS R2 (PHASE IIA) RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 29 Artisan Collection Total Units:288 13100-13300 Copra Avenue Stories:3 Chino, CA Year Built:2006 Status List Price $/SF Sold Price $/SF List Date Sold Date DOM Unit No.HOD HOD/SF Beds Baths Sqft Active $349,900 $253.92 4/28/2020 15 13191 $150 $0.11 2 3 1,378 Sold $320,000 $293.58 $320,000 $293.58 10/2/2019 11/15/2019 23 13175 $80 $0.07 1 2 1,090 Sold $329,000 $301.83 $329,000 $301.83 10/3/2019 10/31/2019 4 13297 $150 $0.14 1 2 1,090 Sold $329,000 $301.83 $320,000 $293.58 5/16/2019 6/21/2019 10 13233 $134 $0.12 1 2 1,090 Sold $389,000 $282.29 $377,500 $273.95 1/14/2019 4/5/2019 51 13283 $80 $0.06 2 3 1,378 Sold $374,500 $271.77 $380,000 $275.76 1/31/2019 4/1/2019 12 13201 $80 $0.06 2 3 1,378 Sold $379,000 $275.04 $372,500 $270.32 9/7/2018 11/15/2018 24 13167 $134 $0.10 2 3 1,378 Sold $315,000 $288.99 $317,000 $290.83 6/1/2018 7/18/2018 22 13173 $214 $0.20 1 2 1,090 Sold $328,000 $300.92 $328,000 $300.92 4/26/2018 6/13/2018 5 13193 $134 $0.12 1 2 1,090 Sold $379,900 $277.10 $379,900 $277.10 3/28/2018 4/27/2018 7 13289 $210 $0.15 3 4 1,371 Sold $380,000 $275.76 $375,000 $272.13 11/4/2017 12/13/2017 12 13243 $122 $0.09 3 3 1,378 Sold $365,000 $266.23 $375,000 $273.52 8/30/2017 9/18/2017 5 13235 $202 $0.15 3 3 1,371 Sold $295,000 $270.64 $295,000 $270.64 8/1/2017 9/11/2017 7 13245 $202 $0.19 1 2 1,090 Sold $354,900 $257.55 $355,000 $257.62 5/25/2017 9/8/2017 77 13153 $122 $0.09 2 3 1,378 Sold $369,300 $268.00 $366,000 $265.60 7/25/2017 9/8/2017 10 13240 $122 $0.09 2 3 1,378 Sold $360,000 $262.58 $368,000 $268.42 6/1/2017 7/11/2017 6 13235 $202 $0.15 3 3 1,371 Sold $360,000 $261.25 $350,000 $253.99 3/24/2017 6/7/2017 62 13187 $202 $0.15 2 3 1,378 Sold $296,500 $272.02 $285,000 $261.47 8/26/2016 3/1/2017 136 13173 $122 $0.11 1 2 1,090 Active Min $349,900 $254 Avg. DOM 15 $150 $0.11 2 3.0 1,378 1 Max $349,900 $254 $150 $0.11 2 3.0 1,378 Avg $349,900 $254 $150 $0.11 2 3.0 1,378 Sold Min $285,000 $254 Avg. DOM 28 $80 $0.06 1 2.0 1,090 17 Max $380,000 $302 $214 $0.20 3 4.0 1,378 Avg $346,641 $277 $148 $0.12 2 2.6 1,258 Source: TheMLS.com COMPARABLE CONDOMINUM SALES AND ACTIVE LISTINGS Arrow Station Total Units:99 8823-8847 Jacaranda Avenue Stories:3 Montclair, CA Year Built:2015/2018 Status List Price $/SF Sold Price $/SF List Date Sold Date DOM Unit No.HOD HOD/SF Beds Baths Sqft Sold $428,000 $303.55 $420,000 $297.87 4/26/2019 7/17/2019 60 E $73 $0.05 331,410 Sold $349,998 $290.70 $349,998 $290.70 11/16/2018 3/29/2019 4 A $233 $0.192 21,204 Sold $359,645 $298.96 $359,645 $298.96 3/21/2018 10/3/2018 72 F $233 $0.191 21,203 Sold $363,846 $302.45 $354,998 $295.09 3/5/2018 3/29/2018 1 F $233 $0.19 2 21,203 Sold $429,998 $304.96 $400,000 $283.69 11/2/2017 2/27/2018 58 C $233 $0.172 31,410 Sold $399,998 $283.69 $399,998 $283.69 11/2/2017 2/15/2018 35 D $233 $0.172 31,410 Sold $359,998 $303.03 $359,998 $303.03 11/2/2017 2/13/2018 36 B $233 $0.202 31,188 Sold $429,145 $304.36 $400,000 $283.69 11/2/2017 12/29/2017 17 E $233 $0.17 3 3 1,410 Sold $319,998 $274.44 $319,998 $274.44 11/2/2017 12/28/2017 3 F $233 $0.201 21,166 Sold Min $319,998 $274 Avg. DOM 32 $73 $0.05 1 2.0 1,166 9 Max $420,000 $303 $233 $0.20 3 3.0 1,410 Avg $373,848 $290 $215 $0.17 2 2.6 1,289 Source: TheMLS.com 7.a Packet Pg. 180 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) METROPOLIS R2 (PHASE IIA) RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 30 Providence Total Units:120 16001 Chase Road Stories:2 Fontana, CA Year Built:2015 Status List Price $/SF Sold Price $/SF List Date Sold Date DOM Unit No.HOD HOD/SF Beds Baths Sqft Sold $330,000 $269.61 $335,000 $273.69 10/4/2019 11/26/2019 14 66 $266 $0.22 2 2 1,224 Sold $375,000 $225.23 $375,000 $225.23 7/11/2019 8/19/2019 7 93 $269 $0.163 31,665 Sold $372,900 $223.96 $372,000 $223.42 4/25/2019 6/26/2019 40 105 $246 $0.15 3 3 1,665 Sold $365,000 $219.22 $369,000 $221.62 8/10/2018 11/6/2018 43 87 $269 $0.16 3 3 1,665 Sold $369,000 $221.62 $368,000 $221.02 4/26/2018 6/28/2018 33 10 $120 $0.07 3 3 1,665 Sold $309,900 $253.19 $310,000 $253.27 9/17/2017 11/1/2017 14 25 $269 $0.22 2 2 1,224 Sold $364,900 $204.20 $355,000 $198.66 6/22/2017 8/23/2017 29 2 $272 $0.153 31,787 Sold $299,999 $245.10 $296,200 $241.99 10/20/2016 3/30/2017 161 48 $272 $0.22 2 2 1,224 Sold Min $296,200 $199 Avg. DOM 43 $120 $0.07 2 2.0 1,224 8 Max $375,000 $274 $272 $0.22 3 3.0 1,787 Avg $347,525 $232 $248 $0.17 3 2.6 1,515 Source: TheMLS.com Metro Walk Total Units:30 803-813 N Dalton Avenue Stories:3 Azusa, CA Year Built:2018 Status List Price $/SF Sold Price $/SF List Date Sold Date DOM Unit No.HOD HOD/SF Beds Baths Sqft Sold $449,990 $345.61 $475,166 $364.95 11/1/2018 3/28/2019 67 106 $312 $0.24 2 3 1,302 Sold $455,990 $350.22 $459,932 $353.25 9/6/2018 12/26/2018 53 106 $312 $0.24 2 3 1,302 Sold $445,990 $342.54 $445,990 $342.54 8/9/2018 9/6/2018 3 101 $312 $0.24 231,302 Sold $495,990 $271.78 $514,078 $281.69 3/7/2018 7/6/2018 18 104 $312 $0.173 41,825 Sold $440,990 $338.70 $440,013 $337.95 5/15/2018 6/29/2018 8 101 $312 $0.24 2 3 1,302 Sold $469,990 $360.98 $469,587 $360.67 5/15/2018 6/29/2018 13 102 $312 $0.24 2 3 1,302 Sold Min $440,013 $282 Avg. DOM 27 $312 $0.17 2 3.0 1,302 6 Max $514,078 $365 $312 $0.24 3 4.0 1,825 Avg $467,461 $340 $312 $0.23 2 3.2 1,389 Source: TheMLS.com Victoria Gardens Total Units:100 12427-12487 Canal Drive Stories:3 Rancho Cucamonga, CA Year Built:2007 Status List Price $/SF Sold Price $/SF List Date Sold Date DOM Unit No.HOD HOD/SF Beds Baths Sqft Sold $425,888 $292.10 $420,000 $288.07 1/17/2020 3/24/2020 43 4 $319 $0.222 31,458 Sold $399,999 $278.55 $399,999 $278.55 9/28/2018 4/10/2019 174 2 $319 $0.22 2 3 1,436 Sold $399,000 $273.66 $390,000 $267.49 4/4/2018 8/27/2018 8 5 $319 $0.22 2 31,458 Sold $429,900 $299.37 $433,000 $301.53 4/5/2018 6/6/2018 2 3 $319 $0.22 2 3 1,436 Sold Min $390,000 $267 Avg. DOM 57 $319 $0.22 2 3.0 1,436 4 Max $433,000 $302 $319 $0.22 2 3.0 1,458 Avg $410,750 $284 $319 $0.22 2 3.0 1,447 Source: TheMLS.com 7.a Packet Pg. 181 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) METROPOLIS R2 (PHASE IIA) RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 31 Discussion of Comparable Sales Data The data in the preceding tables details the terms of 69 closed sales and 2 active listings of condominium units in the competitive submarket. Overall unit sizes for the comparables ranged from 1,059 square feet to 1,825 square feet. All of the comparables were constructed in 2006 or later. The comparables exhibit a predominant pricing range of approximately $325,000 to $425,000 per unit and $250-$350 per square foot. Unit mixes at the comparables generally demonstrate a strong tendency toward 2BR units, with notable proportions of 1BR and 3BR units as well. The majority of the existing inventory in the San Bernardino market is comprised of low-rise, walk-up townhome-style product. There are few, if any, condominium projects taller than 3-stories in the subject’s market area. Celamonte Total Units:119 17871 Shady View Drive Stories:3 Chino Hills, CA Year Built:2007-2010 Status List Price $/SF Sold Price $/SF List Date Sold Date DOM Unit No.HOD HOD/SF Beds Baths Sqft Active $460,000 $305.44 3/11/2020 5/6/2020 45 305 $300 $0.20 3 4 1,506 Sold $379,900 $307.86 $383,000 $310.37 1/21/2020 3/3/2020 6 601 $295 $0.242 21,234 Sold $419,950 $292.44 $415,000 $289.00 7/17/2019 12/13/2019 126 803 $295 $0.21 2 3 1,436 Sold $399,999 $278.55 $398,800 $277.72 9/27/2019 11/22/2019 18 1302 $295 $0.21 2 3 1,436 Sold $402,800 $326.42 $398,000 $322.53 8/6/2019 10/16/2019 39 801 $295 $0.24 2 2 1,234 Sold $372,000 $351.27 $377,000 $356.00 7/17/2019 8/12/2019 8 1201 $295 $0.28 2 2 1,059 Sold $415,000 $336.30 $405,000 $328.20 5/10/2019 7/19/2019 22 1108 $295 $0.24 2 2 1,234 Sold $415,000 $289.00 $402,000 $279.94 5/23/2019 7/8/2019 32 704 $295 $0.21 2 3 1,436 Sold $429,000 $298.75 $429,000 $298.75 5/24/2019 7/1/2019 10 1702 $295 $0.21 2 3 1,436 Sold $375,000 $354.11 $372,000 $351.27 2/14/2019 5/16/2019 55 1801 $290 $0.27 2 2 1,059 Sold $399,900 $278.48 $399,900 $278.48 9/25/2018 3/1/2019 101 507 $290 $0.20 2 3 1,436 Sold $400,000 $278.55 $400,000 $278.55 11/7/2018 2/5/2019 43 204 $295 $0.21 2 3 1,436 Sold $449,000 $298.14 $447,000 $296.81 5/14/2018 9/5/2018 67 1004 $295 $0.20 3 4 1,506 Sold $399,000 $376.77 $395,000 $372.99 7/20/2018 8/22/2018 17 701 $295 $0.28 2 2 1,059 Sold $457,000 $303.45 $459,000 $304.78 6/14/2018 7/27/2018 13 1205 $295 $0.20 3 4 1,506 Sold $447,000 $311.28 $440,000 $306.41 5/8/2018 6/19/2018 14 1402 $295 $0.21 2 3 1,436 Sold $408,000 $284.12 $413,000 $287.60 11/30/2017 1/20/2018 11 903 $295 $0.21 2 3 1,436 Sold $389,999 $316.04 $390,000 $316.05 11/2/2017 12/27/2017 19 1701 $290 $0.24 2 2 1,234 Sold $429,000 $298.75 $429,000 $298.75 10/4/2017 11/30/2017 8 206 $290 $0.20 2 3 1,436 Sold $445,000 $295.48 $445,000 $295.48 8/28/2017 10/23/2017 11 1403 $290 $0.19 3 4 1,506 Sold $398,888 $323.25 $405,000 $328.20 7/1/2017 8/7/2017 6 401 $290 $0.24 221,234 Sold $409,000 $284.82 $400,000 $278.55 5/4/2017 7/14/2017 27 1002 $290 $0.20 2 3 1,436 Sold $389,200 $315.40 $389,200 $315.40 5/26/2017 7/7/2017 6 705 $290 $0.242 21,234 Sold $429,990 $285.52 $435,000 $288.84 5/8/2017 6/15/2017 7 1206 $290 $0.19 3 4 1,506 Sold $389,888 $271.51 $372,500 $259.40 1/4/2017 2/17/2017 44 1207 $290 $0.20 2 3 1,436 Sold $379,999 $264.62 $385,000 $268.11 11/25/2016 1/23/2017 25 402 $253 $0.18 2 3 1,436 Active Min $460,000 $305 Avg. DOM 45 $300 $0.20 3 4.0 1,506 1 Max $460,000 $305 $300 $0.20 3 4.0 1,506 Avg $460,000 $305 $300 $0.20 3 4.0 1,506 Sold Min $372,000 $259 Avg. DOM 29 $253 $0.18 2 2.0 1,059 25 Max $459,000 $373 $295 $0.28 3 4.0 1,506 Avg $407,376 $304 $291 $0.22 2 2.8 1,353 Source: TheMLS.com 7.a Packet Pg. 182 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) METROPOLIS R2 (PHASE IIA) RESIDENTIAL COMPONENT CUSHMAN & WAKEFIELD 32 Absorption The absorption comparables presented above exhibit a tight range of sell-off paces, spanning from 1.3 to 3.4 units per month, or 2.7 to 9.9 percent of the total inventory per month. The predominant range of the comparables indicate an average absorption of approximately 2.5-3.0 units per month, or 3.0-6.0 percent of the total inventory per month. Note that the data presented above incorporates pre-sales reservations, but is based on the actual opening date of the respective communities. While the majority of the absorption comparables are located west of the subject in the Tri-Cities area of the Los Angeles region, they are generally considered similar to the subject in terms of price point, product type, unit mix composition, and overall market positioning. Project Total Units Submarket Sales Commenced Current Status / Sold‐out * % of total per month Metrowalk 30 Azusa Jun‐18 Apr‐19 10 mos. 3.0 units per month 9.9% Kenwood Terrace 35 Glendale Jul‐15 Sep‐17 26 mos. 1.3 units per month 3.8% Nela Union 52 Glendale May‐14 Dec‐15 19 mos. 2.7 units per month 5.2% EightTwenty 38 South Pasadena Apr‐16 Jul‐17 15 mos. 2.5 units per month 6.6% Lake at Walnut 111 Pasadena Jun‐08 Jun‐11 37 mos. 3.0 units per month 2.7% SL70 70 Hollywood May‐14 Jan‐16 20 mos. 3.4 units per month 4.9% * Does not include units currently in‐contract Average Absorbtion: 2.7 units per month 5.5% Compiled by Cushman and Wakefield Western, Inc. Timeframe Average Absorption CONDOMINIUM SELL-OUT/ABSORPTION COMPARABLES 7.a Packet Pg. 183 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RETAIL COMPONENT CUSHMAN & WAKEFIELD 33 Retail Market Overview Key Indicators Source: CoStar 1Q20 San Bernardino Retail Submarket Report Source: CoStar 1Q20 San Bernardino Retail Submarket Report 7.a Packet Pg. 184 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RETAIL COMPONENT CUSHMAN & WAKEFIELD 34 San Bernardino Submarket Retail – Overall Supply and Demand Source: CoStar 1Q20 San Bernardino Retail Submarket Report San Bernardino Submarket Retail – Overall Rent & Vacancy Source: CoStar 1Q20 San Bernardino Retail Submarket Report 7.a Packet Pg. 185 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RETAIL COMPONENT CUSHMAN & WAKEFIELD 35 Leasing - Most Active Buildings in San Bernardino Submarket – Past 12 Months Source: CoStar 1Q20 San Bernardino Retail Submarket Report 7.a Packet Pg. 186 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RETAIL COMPONENT CUSHMAN & WAKEFIELD 36 Market Rent Source: CoStar 1Q20 San Bernardino Retail Submarket Report Source: CoStar 1Q20 San Bernardino Retail Submarket Report 7.a Packet Pg. 187 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RETAIL COMPONENT CUSHMAN & WAKEFIELD 37 Source: CoStar 1Q20 San Bernardino Retail Submarket Report 7.a Packet Pg. 188 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RETAIL COMPONENT CUSHMAN & WAKEFIELD 38 Construction Source: CoStar 1Q20 San Bernardino Retail Submarket Report 7.a Packet Pg. 189 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RETAIL COMPONENT CUSHMAN & WAKEFIELD 39 Source: CoStar 1Q20 San Bernardino Retail Submarket Report 7.a Packet Pg. 190 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RETAIL COMPONENT CUSHMAN & WAKEFIELD 40 Source: CoStar 1Q20 San Bernardino Retail Submarket Report 7.a Packet Pg. 191 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RETAIL COMPONENT CUSHMAN & WAKEFIELD 41 Source: CoStar 1Q20 San Bernardino Retail Submarket Report 7.a Packet Pg. 192 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT RETAIL COMPONENT CUSHMAN & WAKEFIELD 42 RETAIL RENT COMPARABLESPROPERTY INFORMATIONLEASE INFORMATIONNO.Property NameAddress, City, State TENANT NAME LEASE DATE SIZE (NRA) TERM (yrs.) INITIAL RENT/SF RENT STEPS LEASE TYPE MONTHS FREE TI/SF COMMENTS1 Shops at Sterling Plaza2067 E Highland Ave.San Bernardino, CACricket Wireless3/20 960 5 $36.00 2% annual Net N/A N/A This is a new lease for shop space within a newly built muti-tenant pad building that is part of a larger grocery anchored neighborhood center.2 The HUB Shopping Center1055 E Harriman PlSan Bernardino, CANavy Federal Credit Union12/19 6,040 10 $28.00 3% annual Net N/A N/A This is a new lease for a freestanding building which is part of The Hub Shopping Center, which is anchored by Sam's Club.3 The Shops at University Park1725-1775 W Northpark Blvd San Bernardino, CAIt's Boba Time9/19 1,700 10 $36.00 3% annual Net N/A N/A This is a new lease for inline space within a strip center built in 2017.4 Harriman Place1060 Harriman PlSan Bernardino, CAAT & T Mobility6/19 1,800 5$42.00 3% annual Net 4 N/A This is a new lease for inline space within a strip center located across from The Hub Shopping Center.5 Renaissance Marketplace1345 West Renaissance ParkwayRialto, CAPanera3/19 4,300 10 $38.76 10% mid-term Net N/A N/A Panera is an outparcel in the Renaissance Marketplace North. Rent starts at $38.76 per square foot per year, net, and increases 10% mid-term.6 Renaissance Marketplace 1205 West Renaissance ParkwayRialto, CASee's Candies2/19 1,386 10 $37.80 10% mid-term Net N/A N/A This is a new lease for inline space within a muti-tenant building that is part of a larger power center.7 Sprouts16964 Highland AveFontana, CASprouts1/19 30,000 15 $18.00 10% every 5 yearsNet N/A N/A This lease represents the grocery anchor in the newly constructed Highland Village Shopping Center. 8 1935 S Waterman AveSan Bernardino, CA Affordable Title Loans 1/19 1,358 10 $27.00 3% annual Net 10 N/A This is a new lease for inline space within a muti-tenant retail building located on a hard corner.9 Aldi/WSS Shopping Center630-660 W Foothill BlvdRialto, CAWSS8/18 12,430 15 $28.20 5% every 5 yearsNet N/A N/A This is a new 15 year lease with 3, 5-year renewal options. The center is anchored by ALDI and a Carl's Jr on a pad.10 Tri-City Promotional Center525 E Hospitality LnSan Bernardino, CAPoke Hana6/18 1,532 5 $27.00 Flat Net 3 N/A This is a new lease for inline space within a muti-tenant pad building that is part of a larger power center.STATISTICSLow6/18 960 5 $18.00 3High3/20 30,000 15 $42.0010Average3/19 6,151 10 $31.886Compiled by Cushman & Wakefield Western, Inc.7.aPacket Pg. 193Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer THE GALAND REDEVELOPMENT RETAIL COMPONENT CUSHMAN & WAKEFIELD 43 COMPARABLE RENTAL LOCATION MAP - RETAIL 7.aPacket Pg. 194Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer THE GALAND REDEVELOPMENT RETAIL COMPONENT CUSHMAN & WAKEFIELD 44 RETAIL RENT COMPARABLES - FITNESS CENTER LEASESPROPERTY INFORMATIONLEASE INFORMATIONNO.Property NameAddress, City, State YEAR BUILT TENANT NAME LEASE DATE SIZE (NRA) TERM (yrs.) INITIAL RENT/SF RENT STEPS LEASE TYPE MONTHS FREE TI/SF COMMENTS1LA Fitness1057 Grande Vista DriveNewbury Park, CA2018 LA Fitness7/19 36,900 15 $23.00 10% every 5 years Net 0 $0 This is a new 15-year lease and rent commencement began in July2019. This is a brand new 2 story facility built in 2018. The facility ispart of Newbury Shopping Center which also includes Target, HomeDepot, Ross and Starbucks among others. 2 Del Amo Crossing21515 Hawthorne BlvdTorrance, CA2019 24 Hour Fitness 4/19 44,671 15 $29.28 12.5% every 5 yrsNet 0 $0 New BTS 24 hour fitness. Part of larger Del Amo Crossingsdevelopment.3EOS Fitness701 W. Cesar Chavez Ave.Los Angeles, CA1991 EOS Fitness4/19 38,134 15 $24.00 10% every 5 years Net 4 $0 This is a new lease for ground floor retail space within a mixed-useretail/residential building. Tenant has three 5-year renewal options.4 LA Fitness at The Mix8400 Balboa BoulevardNorthridge, CA2018 LA Fitness7/18 37,000 15 $29.00 12% every 5 yearsNet 0 $0 This is a newly constructed health club located on an outparcel to alarger existing creative office/industrial campus. Tenant has three 5-year options.5 Chatsworth Center10116-10130 Mason AveChatsworth, CA1961 Fitness 191/18 16,873 10 $18.00 10% every 5 yrsNet 0 $0 This is a new lease within a larger neighborhood center anchored byVon's and Rite Aid. No tenant improvements or concessions weregiven.6 Crunch Fitness6723 Van Nuys BlvdVan Nuys, CA1950 Crunch Fitness 12/17 20,662 15 $19.12 10% Yr. 11 Net 0 $0 This is a new 15-year lease for a freestanding building constructed in1950 and completely renovated in 2017. There was no free rent ortenant improvement allowance. Tenant has two 5-year renwal options.7 Glendale Marketplace104-146 N. Brand Blvd.Glendale, CA1998 LA Fitness1/16 35,535 15 $24.20 10% every 5 yrsNet 3 $51 New 15 year lease for an LA Fitness. Tenant has three 5-year options.STATISTICSLow19501/16 16,873 10 $18.000 $0High20197/19 44,671 15 $29.284 $51Average19945/18 32,825 14 $23.801 $7Compiled by Cushman & Wakefield Western, Inc.7.aPacket Pg. 195Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer THE GALAND REDEVELOPMENT RETAIL COMPONENT CUSHMAN & WAKEFIELD 45 Financial Analysis SUMMARY OF REVENUE AND EXPENSES - HYPOTHETICAL AS IF STABILIZED - RETAIL REVENUE Annual $/SF % of EGI Retail/Restaurant 118,600 RSF x $33.00 PSF = $3,913,800 $33.00 Gym 40,000 RSF x $21.00 PSF = $840,000 $21.00 Base Rental Revenue $4,753,800 $29.97 Expense Reimbursements $3,433,045 $21.65 POTENTIAL GROSS REVENUE $8,186,845 $51.62 Vacancy and Collection Loss (5.0%)($409,342) ($2.58) EFFECTIVE GROSS REVENUE $7,777,502 $49.04 100.00% OPERATING EXPENSES 0 CAM Expenses $1,903,200 $12.00 24.47% Insurance $237,900 $1.50 3.06% Management Fees @ 3.5% EGI $272,213 $1.72 3.50% Total Operating Expenses $2,413,313 $15.22 31.03% Real Estate Taxes $1,019,732 $6.43 13.11% TOTAL EXPENSES $3,433,045 $21.65 44.14% NET OPERATING INCOME $4,344,458 $27.39 55.86% Compiled by Cushman & Wakefield Western, Inc. DIRECT CAPITALIZATION METHOD $4,344,458 $27.39 Value $/SF GLA $82,751,577 $521.76 $78,990,141 $498.05 $75,555,787 $476.39 Indicated Stabilized Value $78,990,141 $498.05 $79,000,000 $498.11 Compiled by Cushman & Wakefield Western, Inc. Based on Most Probable Range of 5.50% NET OPERATING INCOME Sensitivity Analysis (0.25% OAR Spread) Based on Low-Range of 5.25% Rounded to nearest $1,000,000 Based on High-Range of 5.75% 7.a Packet Pg. 196 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT OFFICE COMPONENT CUSHMAN & WAKEFIELD 46 Office Market Overview Key Indicators - Office The primary data included below is from CoStar’s market reports and Cushman & Wakefield’s Inland Empire data has also been included, which may vary slightly from the reported information from CoStar. Source: CoStar 1Q20 San Bernardino Office Submarket Report Vacancies continue to trend downward, despite a small hiccup in 20Q1. Rents are still about 15% short of their peak, but accelerating rents for 1 & 2-Star buildings—which account for more than half of the submarket's inventory—are helping drive stronger gains. More recently, 4 & 5-Star buildings have also seen robust gains. Source: CoStar 1Q20 San Bernardino Office Submarket Report 7.a Packet Pg. 197 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT OFFICE COMPONENT CUSHMAN & WAKEFIELD 47 San Bernardino's vacancy rate has compressed over the longer term to 8.9%, partly a product of limited supply additions, coupled with slow, but steady business expansions throughout this cycle. However, net absorption has been negative the past 12 months. Among the largest moveouts, the Art Institute of California closed its doors and vacated 46,350-SF in 20Q1. Government agencies have historically been among the most prominent office users here, and that trend has continued lately. In 2018, the County of San Bernardino signed a 10-year lease for an entire 33,000- SF office building in Colton and a 10-year lease for 25,000-SF in San Bernardino's North River Place. Besides government agencies, medical providers and servicers have also been active here. DaVita Dialysis and American Medical Response have recently leased sizable spaces recently, at 16,000 SF and 9,000 SF, respectively. Meanwhile, the CSU San Bernardino ReEntry Initiative Center opened in November 2017 in a 15,000-SF office to help reintegrate the formerly incarcerated population The table below denotes the current statistics of the Inland Empire office market by submarket from Cushman & Wakefield: Market/Submarket Inventory Overall Vacancy Rate Direct Vacancy Rate Under Construction YTD Construction Completions YTD Overall Net Absorption Overall Avg Asking Rent Direct Wtd Avg Class A Rent Ontario 3,795,058 5.7% 5.3% 0 0 47,316 $2.17 $2.43 Rancho Cucamonga 3,121,572 5.8% 5.6% 0 0 12,652 $2.05 $2.16 Fontana 104,235 6.4% 6.4% 0 0 (1,296) $1.80 N/A Chino/Chino Hills 553,672 5.2% 4.6% 31,500 0 (21,573) $2.49 $2.50 Upland 831,279 8.9% 6.9% 0 0 (16,257) $1.64 N/A Riverside 4,419,924 9.3% 9.3% 0 0 (26,486) $2.09 $2.39 San Bernardino 3,643,929 9.4% 9.4% 0 0 42,473 $1.80 $2.17 Colton 268,295 26.3% 26.3% 0 0 (7,877) $1.40 N/A Redlands/Loma Linda 1,093,045 4.4% 4.4% 0 0 5,769 $1.55 N/A Corona 1,862,522 6.8% 5.0% 146,785 0 (66,894) $2.03 $2.31 Temecula 1,357,550 4.3% 2.9% 0 0 (8,509) $1.78 $1.84 Murrieta 653,583 1.0% 0.9% 0 0 27,923 $2.15 $2.30 Lake Elsinore 122,527 7.0%7.0%00(8,572)$1.25 N/A INLAND EMPIRE TOTAL 21,827,191 7.2% 6.8% 178,285 0 (21,331) $1.96 $2.31 Source: Cushman & Wakefield Research; compiled by C&W V&A Office Market Statistics by Submarket Inland Empire Fourth Quarter 2019 7.a Packet Pg. 198 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT OFFICE COMPONENT CUSHMAN & WAKEFIELD 48 San Bernardino Office – Supply and Demand Source: CoStar 1Q20 San Bernardino Office Submarket Report Source: CoStar 1Q20 San Bernardino Office Submarket Report 7.a Packet Pg. 199 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT OFFICE COMPONENT CUSHMAN & WAKEFIELD 49 San Bernardino Office – Rent & Vacancy Source: CoStar 1Q20 San Bernardino Office Submarket Report Source: CoStar 1Q20 San Bernardino Office Submarket Report 7.a Packet Pg. 200 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT OFFICE COMPONENT CUSHMAN & WAKEFIELD 50 Leasing - Most Active Buildings in San Bernardino – Past 12 Months Below are two leases in the city of San Bernardino that occurred in the Fourth Quarter, 2019. The following leases are from CoStar of various asset classes. Source: CoStar 1Q20 San Bernardino Office Submarket Report Building Address Submarket Tenant Size (sf) 1111 East Mill Street San Bernardino San Bernardino County Fire District 70,617 600 North Arrowhead Avenue San Bernardino San Bernardino Employment and Training Agency 18,646 Significant Office Market Lease Trasactions Inland Empire Office Market Fourth Quarter 2019 Source: Cushman & Wakefield Research; compiled by C&W V&A 7.a Packet Pg. 201 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT OFFICE COMPONENT CUSHMAN & WAKEFIELD 51 Market Rent Source: CoStar 1Q20 San Bernardino Office Submarket Report Source: CoStar 1Q20 San Bernardino Office Submarket Report 7.a Packet Pg. 202 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT OFFICE COMPONENT CUSHMAN & WAKEFIELD 52 Construction There are no new construction office projects in San Bernardino in the past two years. Source: CoStar 1Q20 San Bernardino Office Submarket Report 7.a Packet Pg. 203 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT OFFICE COMPONENT CUSHMAN & WAKEFIELD 53 Source: CoStar 1Q20 San Bernardino Office Submarket Report 7.a Packet Pg. 204 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT OFFICE COMPONENT CUSHMAN & WAKEFIELD 54 7.aPacket Pg. 205Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer THE GALAND REDEVELOPMENT OFFICE COMPONENT CUSHMAN & WAKEFIELD 55 Financial Analysis SUMMARY OF REVENUE AND EXPENSES - HYPOTHETICAL AS IF STABILIZED - OFFICE REVENUE Annual $/SF % of EGI Base Rental Revenue 202,000 RSF x $30.00 PSF = $6,060,000 $30.00 Expense Reimbursements $0 $0.00 POTENTIAL GROSS REVENUE $6,060,000 $30.00 Vacancy and Collection Loss (7.0%)($424,200) ($2.10) EFFECTIVE GROSS REVENUE $5,635,800 $27.90 100.00% OPERATING EXPENSES 0 All Controllable $1,010,000 $5.00 17.92% Insurance $202,000 $1.00 3.58% Management Fees @ 2.0% EGI $112,716 $0.56 2.00% Total Operating Expenses $1,324,716 $6.56 23.51% Real Estate Taxes $761,572 $3.77 13.51% TOTAL EXPENSES $2,086,288 $10.33 37.02% NET OPERATING INCOME $3,549,512 $17.57 62.98% Compiled by Cushman & Wakefield Western, Inc. DIRECT CAPITALIZATION METHOD $3,549,512 $17.57 Value $/SF GLA $61,730,643 $305.60 $59,158,533 $292.86 $56,792,192 $281.15 Indicated Stabilized Value $59,158,533 $292.86 $59,000,000 $292.08 Compiled by Cushman & Wakefield Western, Inc. Rounded to nearest $1,000,000 NET OPERATING INCOME Sensitivity Analysis (0.25% OAR Spread) Based on Low-Range of 5.75% Based on Most Probable Range of 6.00% Based on High-Range of 6.25% 7.a Packet Pg. 206 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT HOTEL COMPONENT CUSHMAN & WAKEFIELD 56 Hotel Market Overview The proposed hotel at The Galand is assumed to be a 150-room select-service hotel. The proposed hotel will compete to varying degrees with numerous hotels in the San Bernardino area. We note that the immediate downtown San Bernardino area does not have a large inventory of hotel rooms. The Competitive Hotel Supply tables on the following pages outline relevant operating statistics for the subject’s competitors. Existing Competitive Supply Compiled by Cushman & Wakefield Western, Inc. The proposed hotel at The Galand is assumed to be a 150-room select-service hotel. Based on the market characteristics, the competitive market is comprised of limited service, select-service, and extended-stay properties that range in size from 82 rooms to 115 rooms, with an average of ±111 guestrooms. As such, it is noted that a 150-room select-service hotel would be the largest select-service hotel in the market.Estimated 2018Estimated 2019Number Average Occupancy ADR RevPAR Average Occupancy ADR RevPARPropertyof Rooms Occupancy Rate Rev PAR Penetration Penetration Penetration Occupancy Rate Rev PAR Penetration Penetration PenetrationPrimary CompetitionTownePlace Suites San Bernardino Loma Linda95 75% - 80%$115 - $120 $85 - $9095% - 100% 90% - 95% 85% - 90%80% - 85%$120 - $125 $95 - $100100% - 105% 90% - 95% 90% - 95%Holiday Inn Express & Suites Loma Linda San Bernardino South 85 90% - 95%$110 - $115 $100 - $105110% - 115% 85% - 90% 100% - 105% 85% - 90%$115 - $120 $100 - $105105% - 110% 85% - 90% 95% - 100%Hampton Inn San Bernardino114 80% - 85%$130 - $135 $105 - $110100% - 105% 100% - 105% 100% - 105% 85% - 90%$135 - $140 $110 - $115100% - 105% 100% - 105% 105% - 110%Homewood Suites by Hilton San Bernardino108 85% - 90%$145 - $150 $125 - $130110% - 115% 110% - 115% 120% - 125% 85% - 90%$150 - $155 $130 - $135105% - 110% 110% - 115% 120% - 125%La Quinta Inns & Suites San Bernardino700% - 0%$0 - $0 $0 - $00% - 0% 0% - 0% 0% - 0%70% - 75%$115 - $120 $80 - $8585% - 90% 85% - 90% 75% - 80%DoubleTree by Hilton Hotel San Bernardino251 70% - 75%$125 - $130 $90 - $9590% - 95% 95% - 100% 85% - 90%75% - 80%$125 - $130 $95 - $10090% - 95% 95% - 100% 90% - 95%SureStay Plus San Bernardino South82 65% - 70%$95 - $100 $60 - $6580% - 85% 70% - 75% 60% - 65%75% - 80%$90 - $95 $70 - $7595% - 100% 65% - 70% 65% - 70%Residence Inn San Bernardino95 85% - 90%$160 - $165 $140 - $145110% - 115% 125% - 130% 140% - 145% 85% - 90%$165 - $170 $145 - $150105% - 110% 125% - 130% 135% - 140%Hilton Garden Inn San Bernardino115 80% - 85%$135 - $140 $105 - $110100% - 105% 105% - 110% 105% - 110% 80% - 85%$140 - $145 $115 - $120100% - 105% 105% - 110% 105% - 110%Fairfield Inn & Suites San Bernardino94 75% - 80%$120 - $125 $90 - $9595% - 100% 90% - 95% 90% - 95%75% - 80%$120 - $125 $95 - $10090% - 95% 90% - 95% 85% - 90%Overall Totals/Averages1,109 79.1%$128.73 $101.80100.0% 100.0% 100.0%81.7%$130.55 $106.65100.0% 100.0% 100.0%Competitive Hotel Supply - Occupancy and Average Rate Comparison7.aPacket Pg. 207Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer THE GALAND REDEVELOPMENT HOTEL COMPONENT CUSHMAN & WAKEFIELD 57 Compiled by Cushman & Wakefield Western, Inc. Competitive Hotels ProfileHotel/LocationYear OpenedNumber of RoomsTransientMeeting & GroupTotal Meeting Space (SF)Meeting Space SF per RoomRestaurantLoungeSwimming PoolExercise FacilitiesBusiness CenterComp. BreakfastIn-Room Kitchen1 TownePlace Suites San Bernardino Loma Linda2018 9597% 3%5,43457.2XXXXX10336 Richardson Street, Loma Linda2 Holiday Inn Express & Suites Loma Linda San Bernardino South 2015 8592% 8%1,40216.5X X X X25222 Redlands Boulevard, Loma Linda3 Hampton Inn San Bernardino2014 11489% 11%3753.3X X X X895 E Hospitality Lane, San Bernardino4 Homewood Suites by Hilton San Bernardino2014 10897% 3%7026.5X X X XX885 E Hospitality Lane, San Bernardino5 La Quinta Inns & Suites San Bernardino2019 7090% 10%3505.0X X X X225 E Hospitality Lane, San Bernardino6 DoubleTree by Hilton Hotel San Bernardino1972 25180% 20%14,00055.8XXXXX285 E Hospitality Lane, San Bernardino7 SureStay Plus San Bernardino South1982 8295% 5%00.0X X X X294 E. Hospitality Lane, San Bernardino8 Residence Inn San Bernardino2006 9597% 3%2802.9X X X X X1040 E Harriman Place, San Bernardino9 Hilton Garden Inn San Bernardino2009 11590% 10%3,00026.1X X X X X1755 S Waterman Avenue, San Bernardino10 Fairfield Inn & Suites San Bernardino2006 9493% 7%00.0X X X X1041 E Harriman Place, San BernardinoProposed New Hotel SupplyYear OpenedNumber of RoomsHome2 Suites San Bernardino 2022 120 - - - - X X X X XE Brier Drive, south of S Gifford Avenue, San BernardinoTru Hotel San Bernardino Loma Linda 2023 98 - - - - X X X X215 E Hospitality Lane, San Bernardino2019 Estimated Market MixAmenitiesEstimated Market Mix7.aPacket Pg. 208Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer THE GALAND REDEVELOPMENT HOTEL COMPONENT CUSHMAN & WAKEFIELD 58 COMPETITION MAP 7.aPacket Pg. 209Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer THE GALAND REDEVELOPMENT HOTEL COMPONENT CUSHMAN & WAKEFIELD 59 Aggregate Hotel Market Data Historically, San Bernardino has been a more affordable option to Ontario, which has a convention center and more commercial demand generators. The San Bernardino lodging market has been able to experience significant demand growth since 2014 when most of the new supply and existing supply was built, with the market clearly having an appetite for newer and more modern facilities. The Homewood Suites and Hampton Inn opened in 2014, the last year a decline in RevPAR took place; however, average rate increased 3.8 percent that year. The Holiday Inn Express Loma Linda opened in 2015, which led to two years of RevPAR growth in the 20 percent range, further evidence of the newer product being very well received. Overall, the market has been operating in the high-70 percent to low-80 percent range the last four years. We note that two new hotels opened the last two years. The Towneplace Suites opened in 2018 and the La Quinta Inn & Suites in 2019 and demand growth outpaced the new supply both years. Going forward, there is one new property expected to open in early 2022 with another planned for 2023, but market participants expect the market to react similarly to recent years, with a quick absorption of the new rooms. It should be noted that the COVID-19 pandemic started impacting the lodging market in late-February 2020 and has had a significantly negative impact, with hotels operating in the 5 percent to 20 percent range in March 2020, which is not reflected in the above chart. Year Rooms Supply % Change Demand % Change Occ % Change ADR % Change % Change 2010 638 232,870 ----- 147,249 ----- 63.2% ----- $93.20 ----- $58.93 ----- 2011 638 232,870 0.0% 149,697 1.7% 64.3% 1.7% $98.83 6.0% $63.53 7.8% 2012 638 232,870 0.0% 144,555 -3.4% 62.1% -3.4% $96.51 -2.4% $59.91 -5.7% 2013 638 232,870 0.0% 165,049 14.2% 70.9% 14.2% $99.65 3.3% $70.63 17.9% 2014 797 291,004 25.0% 178,763 8.3% 61.4% -13.3% $103.82 4.2% $63.78 -9.7% 2015 910 332,090 14.1% 228,245 27.7% 68.7% 11.9% $112.42 8.3% $77.27 21.2% 2016 945 344,803 3.8% 266,527 16.8% 77.3% 12.5% $119.74 6.5% $92.56 19.8% 2017 944 344,560 -0.1% 270,112 1.3% 78.4% 1.4% $126.17 5.4% $98.91 6.9% 2018 1,039 379,235 10.1% 300,065 11.1% 79.1% 0.9% $128.24 1.6% $101.47 2.6% 2019 1,086 396,385 4.5% 323,919 7.9% 81.7% 3.3% $130.03 1.4% $106.26 4.7% Avg Annual Percent Change 6.1%9.2%2.9%3.8%6.8% YTD 2/28/2019 1,039 61,301 ----- 46,886 ----- 76.5% ----- $122.73 ----- $93.87 ----- YTD 2/28/2020 1,109 65,431 6.7% 48,432 3.3% 74.0% -3.2% $126.67 3.2% $93.76 -0.1% REPUBLICATION OR OTHER RE-USE OF THIS DATA WITHOUT THE EXPRESS WRITTEN PERMISSION OF STR IS STRICTLY PROHIBITED Market Supply, Demand, Occupancy, ADR and RevPAR Source: STR RevPAR 7.a Packet Pg. 210 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT HOTEL COMPONENT CUSHMAN & WAKEFIELD 60 Competitive Hotels Towneplace Suites San Bernardino Loma Linda Holiday Inn Express & Suites Loma Linda San Bernardino South 7.a Packet Pg. 211 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT HOTEL COMPONENT CUSHMAN & WAKEFIELD 61 Hampton Inn San Bernardino Homewood Suites San Bernardino 7.a Packet Pg. 212 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT HOTEL COMPONENT CUSHMAN & WAKEFIELD 62 La Quinta Inns & Suites San Bernardino Doubletree San Bernardino 7.a Packet Pg. 213 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT HOTEL COMPONENT CUSHMAN & WAKEFIELD 63 SureStay Plus San Bernardino South Residence Inn San Bernardino 7.a Packet Pg. 214 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT HOTEL COMPONENT CUSHMAN & WAKEFIELD 64 Hilton Garden Inn San Bernardino Fairfield Inn & Suites San Bernardino 7.a Packet Pg. 215 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) THE GALAND REDEVELOPMENT HOTEL COMPONENT CUSHMAN & WAKEFIELD 65 Financial Analysis Fiscal Year:Stabilized Days in Year:365 Number of Rooms:150 Rooms Available:54,750 Occupied Rooms:42,158 Occupancy:77.0% Average Rate:$146.71 RevPAR:$112.97 $ % (000's) Gross PAR POR REVENUES Rooms $6,185 89.9% $41,233 $146.71 Food & Beverage 492 7.2% 3,280 11.67 Other Operated Departments 148 2.2% 987 3.51 Miscellaneous Income 49 0.7% 327 1.16 Total Revenues 6,874 100.0% 45,827 163.06 DEPARTMENTAL COSTS Rooms 1,662 26.9% 11,080 39.42 Food & Beverage 394 80.1% 2,627 9.35 Other Operated Departments 22 14.9% 147 0.52 Total Departmental Costs 2,078 30.2% 13,853 49.29 DEPARTMENTAL INCOME 4,796 69.8% 31,973 113.76 UNDISTRIB. OPERATING EXPENSES Administrative & General 433 6.3% 2,887 10.27 Marketing 497 7.2% 3,313 11.79 Franchise Fees 340 4.9% 2,267 8.06 Property Operations & Maintenance 215 3.1% 1,433 5.10 Utility Costs 204 3.0% 1,360 4.84 Information & Telecommunications Systems 86 1.3% 573 2.04 Total Undistrib. Operating Expenses 1,775 25.8% 11,833 42.10 MANAGEMENT FEES Base Management Fee 206 3.0% 1,373 4.89 Total Management Fees 206 3.0% 1,373 4.89 GROSS OPERATING PROFIT 2,815 41.0% 18,767 66.77 FIXED CHARGES Property Taxes 342 5.0% 2,278 8.11 Insurance 140 2.0% 933 3.32 Reserve for Replacement 275 4.0% 1,833 6.52 Total Fixed Charges 757 11.0% 5,045 17.95 NET OPERATING INCOME 2,058 30.0% 13,722 48.82 OPERATING RATIOS Food & Beverage/Rooms 8.0% Other Operated Departments/Rooms 2.4% Miscellaneous Income/Rooms 0.8% Franchise Fee/Rooms 5.5% Stabilized Year ProForma - Carousel Mall Hotel - San Bernardino, CA 7.a Packet Pg. 216 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) Project Team Michele Kauffman Executive Managing Director 213‐955‐6495 michele.kauffman@cushwake.com License: AG042324 Justin Giordani Senior Director 213‐955‐6401 justin.giordani@cushwake.com License: AG044363 ©2020 Cushman & Wakefield. The material in this presentation has been prepared solely for information purposes and is strictly confidential. Any disclosure, use, copying or circulation of this presentation (or the information contained within it) is strictly prohibited, unless you have obtained Cushman & Wakefield’s prior written consent. The views expressed in this presentation are the views of the author and do not necessarily reflect the views of Cushman & Wakefield. Neither this presentation nor any part of it shall form the basis of, or be relied upon in connection with any offer, or act as an inducement to enter into any contract or commitment whatsoever. NO REPRESENTATION OR WARRANTY IS GIVEN, EXPRESS OR IMPLIED, AS TO THE ACCURACY OF THE INFORMATION CONTAINED WITHIN THIS PRESENTATION, AND CUSHMAN & WAKEFIELD IS UNDER NO OBLIGATION TO SUBSEQUENTLY CORRECT IT IN THE EVENT OF ERRORS. 7.a Packet Pg. 217 Attachment: Attachement 1 - SCG America Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) RESPONSE TO THE 2020 REQUEST FOR PROPOSALS FOR THE DOWNTOWN SAN BERNARDINO MIXEDUSE DEVELOPMENT OPPORTUNITY A JOINT VENTURE BETWEEN TWO TRIPLEBOTTOMLINE DEVELOPERS 7.b Packet Pg. 218 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) • • PROCESS BEFORE PLAN 7.b Packet Pg. 219 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) • • Table of Contents 7.b Packet Pg. 220 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) • • SOCIALRETURNS ON INVESTMENT 7.b Packet Pg. 221 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) • • TABLE OF CONTENTS COVER LETTER ...........................................................................I LETTER OF INTRODUCTION ........................................................II DEVELOPMENT PLAN ................................................................III • Project Description • Visualization & Analytical Technology • Conceptual Site Plans, Elevations & Project Summary • Preliminary Development Schedule & Anticipated Phasing ECONOMIC ANALYSIS / PROFORMA ........................................IV • Proforma / Market Study • Additional Project Benefits TRANSACTION TERMS & CONDITIONS ......................................V APPENDIX (UNDER SEPARATE COVER) SECTION 7.b Packet Pg. 222 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 6 7.b Packet Pg. 223 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) • • SECTION I : Cover Letter 7.b Packet Pg. 224 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) • • SHARED PROSPERITY 7.b Packet Pg. 225 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 9 Donald Monti, CEO Renaissance Downtowns USA 830 Traction Avenue #3A Los Angeles, CA 90013 818-454-8762 dmonti@renaissancedowntownsusa.com City of San Bernardino ATTENTION: Jim Slobojan, Deputy Finance Director 290 North D Street, 3rd Floor San Bernardino, CA 92401 Dear Mr. Slobojan, Enclosed please find our response to the “City of San Bernardino’s Request for Proposals for a Mixed-Use Development Opportunity” (the “RFP”) submitted jointly by Renaissance Downtowns USA (“RD”) and ICO Real Estate Group (“ICO”), hereinafter referred to as (“RD ICO” or “Developer”). During the December 4th City Council meeting attended by RD ICO, we both listened very intently to comments made by the Mayor, Council Members, and City Staff which guided our preparation of this response to the City’s RFP and its desire to see a sustainable redevelopment project happen as quickly and responsibly as possible. RD ICO is extremely excited that the City has simultaneously issued an “RFP for General Plan and Development Code Update” and will be selecting a Planning Firm to assist the City in updating their General Plan, which will include a Specific Plan for Downtown San Bernardino. During the aforementioned December 4th City Council Meeting, City Officials expressed a desire for the Master Developer, the City, and its Planning Firm to work in conjunction for the formation of a Downtown Specific Plan. We applaud these efforts and look forward to being a part of this Team. If selected as the City’s Master Developer for its Downtown Revitalization, RD ICO firmly commits to follow the principles of co-creating an Equitable Transit-Oriented Development (“ETOD”), which not only builds upon the City’s historical past, but pays close attention to development in the new norm. Creating strong social bonds is a hallmark of our development philosophy of “If you do good, you’ll do well!” Since the Downtown Redevelopment has been 12 years in the making, it appears that the sentiment that we have heard is that “the time is now” which sends a positive message that there is political will like never before which is a true indication that the City is truly open for business. We are fully committed to help make this dream become a reality. Sincerely, Donald Monti Renaissance Downtowns USA LLC Jian Torkan ICO Real Estate Group Authorized Signature Authorized Signature 7.b Packet Pg. 226 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 10 7.b Packet Pg. 227 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) • • SECTION II : Letter of Introduction 7.b Packet Pg. 228 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) • • EQUITABLETRANSIT-ORIENTED DEVELOPMENT 7.b Packet Pg. 229 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 13 SECTION II • Letter of Introduction We are extremely pleased to present this response to the “City of San Bernardino Request for Proposals for a Master Developer for a Mixed-Use Development Opportunity” (the “RFP”) submitted jointly by Renaissance Downtowns USA (“RD”) and ICO Real Estate Group (“ICO”) (hereinafter collectively referred to as “RD ICO” or “Developer”). We are confident that our overall proposal will not only meet, but rather seeks to exceed the City’s expectations. We have assembled a Team of Nationally, Regionally and Locally recognized experts to assist us in this endeavor. We will be emphasizing our shared Mission, Vision and Development Philosophy throughout this response. Moreover, we completely concur with the RFP’s submittal requirement to have the design concept “be the catalyst for future growth and development in the Greater Downtown Area.” As such, we have demonstrated throughout this document what we refer to as the Big and Bold approach that we believe the City of San Bernardino is ready, willing, and able to embrace. BACKGROUND The issuance of the aforementioned RFP, the subsequent response, and ultimate selection of Master Developer by the City has created a new and exciting opportunity for growth and development in Historic Downtown San Bernardino. Based on the parameters of the RFP, we have responded to each section both in this Letter of Introduction and more comprehensively in subsequent sections of this response. The Carousel Mall and Downtown San Bernardino’s proximity to the San Bernardino Regional Transit Center and the sbX High-Speed Bus Rapid Transit System symbolizes an enormous opportunity to bring about positive transformation through the strategic intersection of land use and transportation. By returning to its roots, the City of San Bernardino (“City”), which blossomed around a transit stop along the Pacific Electric’s San Bernardino Line in 1907, is uniquely positioned for a watershed moment by re- framing its shopping and entertainment amenities in a walkable, pedestrian-friendly Downtown Transit-Oriented District. This will result in a significant increase in job creation, property tax revenues, sales tax revenues and economic development, in addition to numerous health and quality of life benefits. The potential for a sustainable revitalization strategy can be realized through the creation of a holistic and comprehensive approach which allows for the City, Community Stakeholders and Master Developer to co-create a development program built on the Carousel Mall site as the catalyst for transformation of Downtown San Bernardino into the epicenter of the Inland Empire— and as a 21st century model for development throughout the country. San Bernardino’s current revitalization efforts are guided by the City’s 2005 Land Use and Economic Development Elements of the General Plan (the “General Plan”) and from the 2009 Vision Plan for the Carousel Mall property (the “Vision Plan”), which outlines a vision and plan that encompasses an area greater than 600 acres bounded by the Interstate 215 freeway, Sixth Street, Waterman Boulevard and the Metrolink right-of-way/ Rialto Boulevard. As Master Developer, RD ICO believes very strongly that this development time-frame can be dramatically reduced with some minor complimentary zoning enhancements, vis-à-vis an opt-in form-based zoning code, that could yield as many as 15,000 units of attainable housing throughout the Greater Downtown Area. Letter of Introduction 7.b Packet Pg. 230 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 14 SECTION II • Letter of Introduction In addition to the City’s geographic advantages along with their current planning and economic development initiatives, the Region’s demographic profile and economic indicators present the potential for positive transformation following the Triple-Bottom-Line principles of socially, environmentally, and economically sustainable development. The City’s median age is 29.7 years old and its fastest growing population are ‘Boomers’. These two generations, (the Millennials and Boomers) create the market for this walkable, pedestrian- friendly downtown environment where there is currently a more than a thirty percent (30%) market demand and only a two percent (2%) supply. Furthermore, San Bernardino, like most Southern California cities must address the dire need for the creation of attainable housing in its downtown area if it wishes to retain its young and talented workforce. Many young professionals have already made the decision to leave and relocate to areas that provide this Live, Work, Shop, Learn and Play environment. RD ICO believes very strongly that San Bernardino is uniquely positioned to address these needs and take advantage of these opportunities. DEVELOPMENT PARAMETERS AND VISION The Development Parameters and Vision presented in the City’s RFP, and shared by RD ICO, aim to create a redevelopment strategy that serves as a catalyst for the creation of a destination attracting new businesses, residents and visitors to the downtown core of the City. The following section reaffirms our commitment to the City’s Development Parameters and Vision as described in the RFP and is further demonstrated through our comprehensive response in Section III: Development Plan. The Master Developer’s vision should mirror the City’s commitment to transform Downtown San Bernardino into the only true, high-density Urban Live, Work, Shop, Learn, and Play downtown in all of the Inland Empire. Our award-winning Crowdsourced Placemaking (“CSPM”) process, known affectionately as our “secret sauce,” serves as an important pillar to our “three-legged stool” for a design framework of future development that is co-created in collaboration with the City, the Community, and the Master Developer. We whole-heartedly agree with the City’s idea that re-establishing the Historic Street System in part or whole is an opportunity to return to its roots, when the City blossomed around a transit stop along the Pacific Electric’s San Bernardino Line. To that end, we have detailed our proposal for returning the Historic Street System in Section III: Development Plan. Downtown San Bernardino is uniquely positioned for a watershed moment by re- framing its shopping and entertainment amenities in a walkable, pedestrian-friendly, downtown transit-oriented district. RD ICO RD ICO 7.b Packet Pg. 231 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 15 SECTION II • Letter of Introduction Downtown San Bernardino’s revitalization would include urban development in a vertical mixed-use format combining high- density residential, commercial and office uses. Development patterns could include ground floor commercial, retail, service, entertainment, and food-oriented uses with residential uses on the floors above. Outdoor dining areas would be included to accompany ground floor restaurant and food-oriented uses. Entertainment venues would also be sought to contribute to a vibrant downtown ecosystem with complimentary uses and amenities. Professional and governmental office development may be a component of the redevelopment of the site. On secondary street frontages, live/work units could accommodate small business owners, artists, entrepreneurs, as well as Boomers and Millennials seeking an urban lifestyle and amenities. New development in Downtown San Bernardino will be designed, sited, and massed to convey “Urban” characteristics with buildings and structures in close proximity to sidewalks, bike paths, and pedestrian-friendly streets. First floor architectural designs will be created at a pedestrian scale and evoke the interest of passersby. Buildings of historic significance should be preserved when feasible in an effort to maintain the historic character of the Downtown. Moreover, RD ICO proposes consideration of development design guidelines to further support this historic character within Section III: Development Plan of this response. Pedestrian-oriented plazas, courtyards, and open space will serve to create a sense of place and belonging for the users and residents of the Downtown, as well as bringing about the now invaluable benefits of “healthy land use.” Parking is an important strategic decision for a sustainable Downtown and should be located at the rear of sites or underground to the extent feasible, and not along public streets. Main entryways to the Carousel Mall property site and surrounding Downtown will tie into nearby transit facilities so that off-street parking needs can be reduced by making use of public transportation provided at the San Bernardino Regional Transit Center, sbX High-Speed Bus Rapid Transit System, and the future Arrow Rail Station of the Redlands Passenger Rail Project. Through the use of a well-crafted form-based zoning code, flexibility may be provided as it relates to residential densities, floor area ratios, building heights, and appropriate mixes of uses to ensure the development is feasible. A well-crafted form-based zoning code can provide economic resiliency to a large-scale redevelopment project such as Downtown San Bernardino by allowing developers to shift to the vicissitudes of economic cycles and market demands, which is necessary now more than ever during these uncertain times, with the coronavirus pandemic and the resulting economic crisis. The City and Master Developer understand that a project of this magnitude will be broken into various development phases; yet, we must evaluate the future development opportunities on adjacent and surrounding properties in a holistic and comprehensive manner which can be accomplished most effectively through our 8-step Core Revitalization Methodology, as outlined below and described in Section III: Development Plan. DEVELOPMENT METHODOLOGY One of the primary reasons that RD and ICO formed a Partnership for this development opportunity is predicated on the fact that we share a Vision and a Corporate Culture that solidified our decision to work together. Our development methodology incorporates a series of well-thought out and proven strategies, imperative for transformative redevelopment to occur. These strategies are illustrated below in an order that is almost assured to bring about an alignment amongst the City, Community Stakeholders, and RD ICO. Our philosophy is that “for an ecosystem to be sustainable, all species must be included.” This is exemplified in our Triple- Bottom-Line commitment to socially, environmentally, and economically sustainable development. Our Core Revitalization Methodology is custom-tailored around this philosophy and vision for equitable transit-oriented downtowns in suburban communities. This philosophy, vision, and methodical approach are the reason why our proposal is superior to others being 7.b Packet Pg. 232 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 16 SECTION II • Letter of Introduction considered and how we will ensure that redevelopment of Downtown San Bernardino serves as the catalyst for future growth and development throughout the greater areas of San Bernardino and the Inland Empire. For an Ecosystem to be sustainable, all species must be included. RD ICO has pioneered community-driven economic development of Urban Nodes in Suburbia while staying true to the Triple-Bottom-Line principles of social, environmental, and economic sustainability. Outlined below is our 8-Step proven methodology, that when followed in partnership with Municipalities and Community Stakeholders, is assured to bring about a holistic, comprehensive, and synergistic result. 1. Process Before Plan – the economic development and revitalization of Downtown San Bernardino through the co- creation of a shared development vision must begin with a partnership between the CITY, COMMUNITY STAKEHOLDERS and MASTER DEVELOPER, and a commitment to place PROCESS Before PLAN. All too often, the unveiling of a Plan prior to the introduction of the Process leads to community opposition that can result in the premature derailment of even a well-conceived project. Conversely, the PROCESS Before PLAN approach would enable the San Bernardino community, including private property owners, to participate in the vital role of co-authorship through their early involvement in the Process which would result in the co-creation of the Plan. PROCESS Before PLAN allows for the return of the “Art of Listening” which is essential to our Triple- Bottom-Line development approach. By making a commitment to a PROCESS Before PLAN approach and selecting a master developer with the unique qualifications and experience to lead a collaborative and holistic process, San Bernardino can expedite its implementation of comprehensive downtown revitalization that is economically viable, vibrant, and pedestrian-friendly. 2. Selection of a Master Developer – the economic development and revitalization of Downtown San Bernardino can only succeed if done in a holistic and comprehensive manner. An infill development approach has not and will not work to produce transformative suburban downtown economic development and revitalization. Infill development may work in major gateway cities since those are normally the only opportunities that exist for development in built-out urban centers. It’s impossible to think of re-inventing cities like New York, Los Angeles and Chicago. However, what is needed in many suburban downtown communities such as Downtown San Bernardino is total re- activation of a central business district in order to create a walkable, pedestrian-friendly environment where people can Live, Work, Shop, Learn and Play. This transformation can only be accomplished in a responsible manner and timeframe under the auspices of a Master Developer, such as RD ICO, working collaboratively to co-author and implement a shared vision with the Community Stakeholders and the Municipality. 3. Crowdsourced Placemaking (CSPM) – RD ICO’s key asset is ‘Crowdsourced Placemaking’ (CSPM), a grassroots, bottom-up program for community engagement. The authenticity that is created through the Community’s pride of authorship enables San Bernardino Community Stakeholders to be involved from the outset leading to unprecedented community support 7.b Packet Pg. 233 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 17 SECTION II • Letter of Introduction which automatically converts into increased political will. Shortly after a city designates RD ICO as the Master Developer, we initiate the program by opening a local community engagement office staffed by local residents. San Bernardino Stakeholders would work together to launch a community-based portal and outreach program which they will self-name, that will enable community members to join this collaborative process. Each community member is required to sign, either electronically or in person, a Triple-Bottom-Line agreement that the development ideas which they suggest must be socially, environmentally, and economically sustainable – difficult to argue with those rules. Once posted, we will do feasibility studies on the largest vote-getters for the purpose of gauging the impact of these Triple-Bottom-Line development ideas for Downtown San Bernardino. 4. Unified Development Approach (UDA) & Recommended Action Plan (RAP) – the UDA provides San Bernardino with a framework to facilitate a comprehensive, mixed-use Transit-Oriented Development strategy that brings together Community Stakeholders, Private Property Owners and Transit Agencies to collaboratively create and implement a shared, holistic development vision. The UDA will help San Bernardino to ensure project sustainability, maximize the social, environmental, and economic benefits and eliminate the need for eminent domain or displacement proceedings. This inclusive strategy creates an alignment between the Master Developer and Private Property Owners that would otherwise have resulted in the potential for competing interests that could thwart development efforts in Downtown San Bernardino. The UDA, coupled with the ongoing CSPM process, serves as a platform for the creation of a co-authored Revitalization Action Plan (RAP). The RAP enables the commencement of the Triple- Bottom-Line process of analyzing the social, environmental, and economic benefits of implementing a shared development vision for Downtown San Bernardino. 5. Triple-Bottom-Line Analysis – Social Impact Investment (SII) is now being measured, and in many instances required, to fulfill Social Returns on Investment (SROI) mandates. RD ICO’s social impact real estate development model adheres to these forward-thinking standards which will provide multi-benefits to San Bernardino and the surrounding region not just during the development phase, but for generations into the future of the City and its Community. The social impact created by this 21 Century development program will extend far beyond San Bernardino by providing the entire state and appropriate regions in the country with a sustainable and equitable model for development. A few of the potential benefits of our Triple-Bottom-Line Analysis for San Bernardino would include: Social Sustainability Analysis: • Attainable Housing Analysis • Social Impact & Equity Study • Social Returns on Investment (jobs, contracting opportunities, services, retail, & entertainment) • Multi-modal & active transportation, regional connectivity, quality of life improvements Environmental Sustainability Analysis: • Climate-smart development, community greening & urban cooling for climate resiliency • Healthy land use for improved health outcomes • Open space, bike trails connecting transit hubs, & multi- modal transportation options • Reduced vehicle miles traveled & mobile emissions for better air quality Economic Sustainability Analysis: • Job creation & economic development • Sustainable fiscal outcomes for the City, community, and potential developers • Shared economic prosperity through attainable housing, substantial new revenues for the City & other economic benefits from the crowdsourced Community Benefits Agreement. 6. Specific Plan & Form-Based Zoning – in order for truly transformative suburban downtown economic development and revitalization to occur within a reasonable timeframe, 7.b Packet Pg. 234 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 18 SECTION II • Letter of Introduction the Community must be able to adapt to market cycles and preferences in a timely manner. This is most effectively achieved within a Specific Plan utilizing the elements of a Form-Based Zoning Code, in contrast to conventional zoning. “Conventional Zoning” can stifle the ability of the City and potential developers to quickly respond and adjust to future uncertainties that surely lie ahead. A properly written Form-Based Zoning Code will encourage San Bernardino’s downtown property owners to aggregate their properties in order to participate and maximize their development opportunities. By working collaboratively under this newly created overlay zone, all of Downtown San Bernardino’s Stakeholders stand to benefit from this inclusive process and through the value created by the ‘certainty’ resulting from the approval of sustainable entitlements. The adoption of a Form-Based Zoning Code will encourage property owners to aggregate smaller parcels thereby creating the ability to actually implement development through a collaborative process. 7. Community Benefits Agreement (CBA) – baked into San Bernardino’s community-driven Form-Based Zoning overlay should be provisions outlining the terms and conditions of a CBA. This mandate will ensure that San Bernardino’s residents, local businesses and contractors are given opportunities for construction jobs, contract awards and careers so that they can also participate in the benefits of this newly created Live, Work, Shop, Learn and Play environment. We believe that a CBA will provide significant benefits to San Bernardino residents and local businesses while serving as the much-needed economic stimulus to both the City and Community given San Bernardino’s current economic challenges. San Bernardino’s CBA could also provide the City with revenue- sharing opportunities to fund city services, public improvements and amenities, or other benefits identified as top priorities by the City and the Community as a result of our PROCESS Before PLAN approach. 8. Groundbreaking – What one might perceive as the end of this development methodology, actually represents a “New Beginning,” demonstrating the dividends that can be realized through this holistic and comprehensive process. As a result of our proven 8-Step Methodology, the ground-up development of a transformative downtown can begin. It is totally feasible for there to be a significant amount of complimentary, rather than competitive development projects taking place simultaneously which will enable the City’s long-awaited dream to become a reality. The subsequent sections of this Response tell the full story of this transformative development opportunity. We encourage you to review our entire RFP response, which is presented in a fully transparent manner and lays out the necessary parameters to be properly executed for a large-scale development strategy to successfully take place. “Where there is a will, there is a way.” 17 RDUSA recognizes that the Area Y Opportunity Site and Downtown Specific Plan Area’s proximity to the El Monte Metrolink Rail Station symbolizes an enormous opportunity to bring about positive transformation through the strategic intersection of land use and transportation. By implementing a holistic and comprehensive revitalization strategy, El Monte can generate a significant increase in job creation, property tax revenues, sales tax revenues, economic development potential, health and quality of life benefits, and ensure that the City’s youth and future generations share in its prosperity while providing the City’s fast growing Boomer population with expanded opportunities to enjoy their “golden years.” The Area Y Opportunity Site represents an idyllic starting point for El Monte to manifest its vision for a “unique and identifyable downtown” that is an “economically viable, vibrant, and pedestrian-friendly destination.” RDUSA specializes in the co-creation and implementation of a sustainable economic development and revitalization strategy that can be realized through a holistic and comprehensive approach which allows for the City, Community Stakeholders (including property owners) and Master Developer to co-create a development program for suburban downtowns such as El Monte’s Area Y Opportunity Site and its downtown Plan area. RDUSA’s expertise in implementing a co-created vision that catalyzes positive transformation in suburban downtowns is a result of the Company’s social impact real estate development model which prioritizes Shared Prosperity, Social Equity and Social Returns on Investment through a Core Revitalization Methodology built on intensive community engagement (“Crowdsourced Placemaking”) and property-owner collaboration (“Unified Development Approach”). RDUSA’s approach would maximize the Plan’s potential to realize a full buildout of its estimated 2,200 residential units, 500,000 square feet of commercial space, and thousands of new residents in a more rapid timeframe than the Plan’s targeted completion by the year 2035 - beginning with Area Y. Renaissance Downtowns USA (RDUSA) is pleased to submit this response to the “Request for Proposals for Development Vision for Area Y Opportunity Site in the Downtown El Monte Specific Plan Area”. RDUSA is a master developer with national recognition for the creation of Urban Nodes in Suburbia (UNiS) centered around Equitable Transit-Oriented Development (ETOD). RDUSA’s innovative Core Revitalization Methodology serves as a catalyst for both community-driven economic development through ETOD as well as Social Returns on Investment (SROI) that foster shared prosperity with the community and municipality. SECTION II • Firm Qualifications RDUSA APPROACH PROCESS BEFORE PLAN Diagram of RDUSA’s Implementation Chart UNIFIED DEVELOPMENT APPROACH™(UDA) CROWDSOURCEDPLACEMAKING(CSPM) FORM A PUBLIC-PRIVATE PARTNERSHIP RECOMMENDED ACTION PLAN (RAP) ZONING & ENTITLEMENTS IMPLEMENTATION & DEVELOPMENT RD ICO APPROACHPROCESS BEFORE PLAN Diagram of RD ICO’s Implementation Chart 7.b Packet Pg. 235 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) • • SECTION III : Development Plan 7.b Packet Pg. 236 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) • • COMMUNITY-DRIVEN PLACEMAKING 7.b Packet Pg. 237 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) SECTION III : Development Plan PROJECT DESCRIPTION 7.b Packet Pg. 238 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 7.b Packet Pg. 239 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 23 SECTION III • Development Plan The following description begins with an introduction that provides key facts about the development proposal. Then, we list the City’s overarching goals, in the same sequence as in the RFP. Finally, we respond to each development parameter and explain how the development concept is designed to address them. For clarity and brevity, in some cases, we have combined our responses to multiple related RFP bullet points in a single paragraph. This methodology enables easy tracking of RFP response requirements. We are excited about the potential of the Carousel Mall redevelopment as the first step in a newly re-emerging downtown San Bernardino. Our concept envisions 2,000 to 3,500 residential units within the overall Carousel Mall Site, along with appropriate market-driven retail and office components. As a phased development model, it is adaptable to the ever-changing needs of all asset classes in the new norm. The redevelopment will position the City as a vibrant, healthy, and walkable downtown through the creation of a live, work, shop, learn, and play environment. San Bernardino’s outstanding transit hub provides connectivity to downtown L.A. and additional locations. The new ARROW rail connection between Redlands and San Bernardino is scheduled to open in the near future, representing yet another mobility enhancement to the City’s current transit system. The advent of this rail connection provides a significant opportunity for the City to emerge as THE destination for the Inland Empire. The Carousel Mall area will become a catalyst for the expansion of the ‘Core’ Downtown, demonstrating how the whole becomes so much greater than the sum of its parts. DEVELOPMENT PARAMETERS The creation of what is now referred to as Urban Nodes in Suburbia (“UNIS”) will define the City as an enviable destination, exemplifying an authentic downtown living and entertainment environment. Additionally, the redevelopment opportunity will attract both new residents and businesses and serve as a true California model for Holistic and Comprehensive Downtown Revitalization. The social, environmental, and economic benefits (“Triple-Bottom-Line”) of a walkable downtown will create a neighborhood feeling with enormous economic benefits while striving to create a trend-setting development for climate adaptation. A market-driven residential, retail, and office mix is fundamental to the transformation of the Carousel Mall Site. The development will additionally be enriched and enlivened by complimentary districts with a focus on innovation, entertainment, plus other features that will bring vibrancy to Downtown San Bernardino. These areas, when identified, will build upon and benefit from key qualities of the new development and greater downtown: proximity, density, and authenticity. They will function synergistically and grow with areas outside the mall site to further enable the comprehensive Downtown redevelopment of San Bernardino into a vibrant regional destination. These Innovation Areas will facilitate the creation and commercialization of new ideas and support the local economy through commerce and job growth. The Development Team will seek partnerships with businesses and educational institutions in San Bernardino and nearby cities such as Redlands and Riverside. Project Description 7.b Packet Pg. 240 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 24 SECTION III • Development Plan This has the potential to connect disadvantaged populations to greater employment and educational opportunities. Entertainment Areas are envisioned to build upon and bolster the momentum of existing assets such as Theater Square, located just north of the mall site. The most active parts of the redevelopment will have programmatic and physical connections through the entire Downtown Redevelopment Area. The City will come to life when diverse groups of people can engage with arts and culture, restaurants, retail, and other civic uses in a walkable environment with distinctive urban design. Furthermore, communities that invest in mixed-use walkable downtowns provide social, economic, and environmental benefits for individuals and businesses alike. We have considered the inclusion of ‘walkable’ design principles throughout the entire revitalized downtown. The Design Team is very committed to and knowledgeable about placemaking concepts and strategies. Best practices from other locations will be applied and adapted to San Bernardino, on every aspect of the new downtown. Every design suggestion for the proposed project is only there to provide maximum quality of place, and to strengthen the overall viability and competitiveness of the downtown as a whole. A key in the revitalization of the mall property is restoring a street system based on the once existing historic street grid, albeit enhanced with some adjustments and improvements. The layout begins by extending the historic grid into the site, then adding to it a finer-grained structure; and lastly, adapting it to the unique aspects of the contemporary site. Rather than continue a uniform grid, the newly proposed street system establishes hierarchies. Court Street will be the dominant commercial east-west axis. F Street will be the dominant north- south axis and connect the downtown to the existing Metrolink station. The grid keeps the existing north-south and east-west connectivity, but introduces additional streets mid-block to create a much more walkable, small-block structure. Research on urban form has traditionally suggested that smaller city blocks are better for foot traffic, and prominent urbanists have advocated them as key promoters of pedestrian access. Finally, a network of paseos weaves through block structures, creating small-scale, shaded event locations along narrow walking paths and in shady inner courtyards. Instead of continuing the overall north-south and east-west grid, the new western city blocks respond to an existing diagonal street (North G Street) and continue its diagonal pattern. With this, they redirect traffic from the north, back into the new downtown and towards F Street. It is the Development Team’s overriding goal to make the downtown walkable, and a diagonal grid is beneficial in this regard. A prime example of this pattern is in the old downtown of L.A., where there is always shade on one side of the street. Cities were created to bring things together. Neighborhoods with a diversity of uses and places to walk to have significantly more walking than those that don’t. For most American Downtowns, it is housing – places to walk from– that is in particularly short supply. While the design of the new core will be driven by formal considerations (thru a form-based code) rather than functional use-allocations, it is to be expected that the majority of the new buildings will bring people to live in multi-family, multi-story residential structures designed, sited and massed to convey ‘urban’ characteristics; with buildings and structures in close proximity to the sidewalks. Some additional office space may also be created in the downtown if market conditions allow. All buildings will be designed at a pedestrian scale and generate interest to the casual walker-by on foot. The design envisions ground floor restaurant and food-oriented uses along the more heavily populated streets, surrounding the lively open spaces, and along with the pedestrian paseo network. Along side-streets, and on secondary frontages, live/work units may become part of the functional mix. Supportive retail will be a consideration and introduced carefully if market forces allow. Standard placemaking rules will guide all new building designs. Buildings will provide frontages that are enjoyable to walk by; entrances will be off main streets and never off parking lots. The New Downtown will get the parking right. The design contemplates a number of methods to accommodate the right number of cars. This will be achieved initially by retaining the vast majority of the existing mall garage as a central parking location 7.b Packet Pg. 241 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 25 SECTION III • Development Plan for new and existing functions close by; through diagonal and parallel street parking on select streets to encourage sidewalk pedestrian traffic; by creating dedicated parking facilities for residential car storage needs; and eventually by additional shared parking garages that will relieve individual buildings from creating parking capacity on their own lots as well as providing a more secure and safe parking environment through the 24/7/365 usage of parking garage facilities. This will allow the development of small-parcel infill properties, which otherwise could not effectively be built on because they could not effectively be parked. Small-parcel infill will noticeably contribute to the small-scale walkable character of the future downtown. In addition to creating a walkable city, and to supplement existing vehicular circulation, the redesign will also focus on creating ample opportunities for mixed-mode mobility, which will include an electric trolley line, a bicycle network and a fitness trail as a healthy activity necklace around the entire newly revitalized urban core. The design of the New Downtown core stresses that it will be a revitalization and enhancement, not a complete replacement of the existing downtown. Historic buildings are a welcome and necessary component of this evolving downtown, as such buildings give it a historic continuation with times gone past. The design of infill buildings will complement existing structures and attempt to continue and strengthen historical characteristics. Open spaces of different sizes are sprinkled throughout and in between the new blocks. A larger central open space, located at the intersection of Court Street and F Street, emphasizes a new center. The idea behind this concept is that places thrive when users have a range of reasons to be there. Known as “The Power of Ten,” it indicates the ideal number of uses that take place within these newly created open spaces. These might include a place to sit, playgrounds to enjoy, art to touch, music to hear, food to eat, history to experience, and people to meet. Ideally, some of these activities will be unique to downtown San Bernardino, reflecting the culture and history of the surrounding community. An intense process of engagement with the community will help the design team to co-create the specific character and functionality of the new open spaces. According to the guidelines of the Project for Public Spaces, public perception begins to shift amongst both locals and tourists when cities contain at least 10 of these destinations or districts. Urban centers can become better equipped for generating resilience and innovation. URBAN FORESTRY As a further amenity towards a livable and enjoyable downtown, the Development Team intends to create a tree canopy over an area much larger than the core downtown and Carousel Mall Site. The planting of 250,000 trees should be part of the overall development strategy to give the streets a shade canopy over a larger district. This will also provide additional social, environmental, and health benefits for pedestrians. The City has available water resources, and the design intends to make water a feature attraction in one or more of the City’s new open spaces. While no specific decision has been reached about the design or size, such a water feature could become like the pond in the popular Grove in Los Angeles, or the Americana at Glendale. SAFETY AND SECURITY The time-tested principles of Crime Prevention through Environmental Design (“CPTED”) underpin our approach to the project. Site plan elements, including the size and location of parks, plazas, and streets, and their relationships to buildings and uses around them, are all configured to maximize natural surveillance, access control, and territoriality. When employed skillfully, these strategies not only help deter crime; they will also foster a sense of ownership and community among the people who live and work here. We look forward to incorporating CPTED principles on a more granular level (block and building scale) as we move through the planning and design process. In addition, an often-overlooked feature in the creation of UNIS is the fact that eyes on the street in the form of residential buildings and pedestrians moving about in a walkable environment have proven to create the safest environments. 7.b Packet Pg. 242 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 26 SECTION III • Development Plan Furthermore, this newly Revitalized Downtown creates the opportunity for the formation of mechanisms, such as a Property-Based Business Improvement District (“PBID”), to further strengthen desirable safety measures through the creation of a safer, more secure, and prosperous downtown. We will also include professional Safety and Security consultants as part of our Development Team to work in collaboration with local law enforcement. SUPPORTING HEALTHY LIFESTYLES Each aspect and characteristic mentioned above is a building block in the foundation of a healthy community. Together, they add up to an environment where making the healthy choice is easy, convenient, safe, and desirable. The fine-grained network of streets and trails and parks increases physical activity. Supportive retail such as grocery stores, plus farmers’ markets and community gardens, enhance access to healthy foods. Quality urban environments help reduce absenteeism at work and school and foster an overall sense of well-being. And with robust external connections, these positive impacts can spillover to improve the quality of life of surrounding communities. PLANNING FOR GROWTH IN GREATER DOWNTOWN SAN BERNARDINO Although the Carousel Mall represents the potential redevelopment of 43 acres in Downtown San Bernardino, the opportunity exists to look at this redevelopment as a catalyst for a more holistic and comprehensive approach. This will create a true downtown that, if urbanized in this manner, will become the poster child for downtown redevelopment in California. We strongly recommend that the City and their Planning Team view this redevelopment opportunity as transformative, possibly serving as an example for the entire State of California. To that end, we believe the area extending north to 6th Street and east to Sierra Way can accommodate several thousand additional residential units, along with supportive retail, commercial, entertainment, and cultural uses. In support of the above, an analysis has been performed by RD ICO, which has been included for illustrative purposes only, as a sample representation of a potential expanded redevelopment area. As described in Section II: Letter of Introduction, the vision for this expanded Development Approach addresses the City’s desire for a big and bold creative approach towards the overall Downtown Redevelopment of San Bernardino. RD ICO’s unique Unified Development Approach (UDA) offers adjacent property owners the potential to participate in this overall Downtown Redevelopment opportunity in a fully immersive, collaborative development environment. This Inclusive Development Strategy is certain to be attractive to Private Property Owners and will enable them to participate collaboratively in the overall Downtown Redevelopment. 7.b Packet Pg. 243 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) SECTION III : Development Plan VISUALIZATION &ANALYTICAL TECHNOLOGY 7.b Packet Pg. 244 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 7.b Packet Pg. 245 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 29 SECTION III • Development Plan Bold decisions and inspired leadership require intent, commitment, and resources. To help realize the vision described in our Project Description, RD ICO will use the vibrant force of America’s technological brilliance combined with modern urban design metrics to create the best version of the rebirth of Downtown San Bernardino. Starting with the Carousel Mall redevelopment program, RD ICO will utilize data analysis to generate information that allows stakeholders to “score” progress, employing data and inputs that empower the Mayor, City Council Members and City Planning Team to make more informed decisions by putting Process before Plan. The public’s participation will be enhanced with visualization and analysis software tools (“V&A Tool”) essential to both visual and textual/ numerical analysis provided by RD ICO’s proprietary V&A Tool. This innovative and one-of-a-kind technology also enables the Community to participate in this collaborative process through social online media platforms and in-person meetup’s, resulting in the Community feeling a sense of pride and authorship in the co-creation of their newly envisioned Downtown. The mechanism of communication will be engaging three- dimensional (3D) data visualization from both detailed 3D city computer models and comprehensive data charts which will generate a revealing comparison to “what is”—and “what could be.” This will result in the “creation of a legacy.” Geospatial data equips urban planners with a vast amount of valuable information which can be used in concert with other data to revitalize Downtown San Bernardino for the entire community and its visitors. For instance, “digital health scoring” and “decision analysis” prove integral to urban design. This especially applies to physical activity (biking, walkability, fitness centers, etc.) and medical facilities (location of health providers). Biometric and lifestyle information team up as influential components of Triple-Bottom-Line (“TBL”) analysis. For example, a high walk score translates into the ability to conduct day-to-day activities without a vehicle. A rating score of 90-100 (100 being maximum) could be weighted to certain design schemas for the Carousel Mall and surrounding areas. Balancing “drivable suburban vs. walkable urban”, through the creation of Urban Nodes in Suburbia (“UNIS”) throughout the entire planning process, is integral to the success and sustainability of this transformative redevelopment opportunity. In addition, spatial analysis is essential for the creation of the built environment in the “new norm.” Geospatial data is an essential element in evaluating and determining the impacts of both present and future environmental changes. The TBL analysis does not stop at health and lifestyle information metrics. It also defines environmental and economic values for a specific urban design. Like health information, a vast amount of available environmental, economic, and social data will result in a richer, more holistic, and comprehensive built environment. By combining both mobility and land use options with climate- smart renewable energy in a solar-rich area like San Bernardino, RD ICO will deliver highly valuable information into its V&A Tool to be visualized and communicated to City Leaders, as well as all Community Stakeholders. RD ICO also utilizes a scoring system for measuring “Social Return on Investment” (“SROI”) as compared to traditional returns on investment (“ROI” or “IRR”). Social scoring aggregators (walkability, cycling, health impacts, environmental, safety factors, etc.) factor heavily into SROI. Visualization & Analytical Technology 7.b Packet Pg. 246 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 30 SECTION III • Development Plan Our Team deploys risk analysis into the algorithms when designing successful urban plans. Be it risks associated with terrorism (9/11), climate change, or disease (COVID-19), we are readily prepared to analyze and stay ahead of the curve utilizing the latest data available. RD ICO’s Development Team brings over 70 years’ experience in real estate development as well as software and data integration to this extraordinary V&A Tool. Members of The Team have worked with companies like Facebook, Microsoft, Google, ESRI, and Autodesk in the development of RD ICO’s V&A Tool. The time to think BIG AND BOLD is now. If not now, when? Create a movement of positive growth harnessed by the power of forward-thinking 3D visualization and analytical technology to forge a holistic and comprehensive revitalization of Downtown San Bernardino. The V&A Tool we are creating will contain a huge data bank of relevant information to give the Municipality and the Community instant information and gratification by showing different building typology’s, facades, heights, rooftop configurations, landscaping, etc., immediately. This visualization capability will simultaneously produce the social, environmental, and economic benefits that will instantly update as modifications are made to the visualization elements of this tool. Everything begins with data input, as illustrated in Exhibit A: Sample Data Schema. The term “schema” refers to the organization of data into a blueprint illustrating how the database is constructed (divided into database tables, in the case of relational databases). For instance, the number of apartment “units” as well as retail and commercial uses all represent a value. When planned development of the appropriate mix of these uses change, those +/- differences cause a shift in all the other information indicators relating to jobs, safety, health impacts, carbon footprints, social return on investment, etc. Exhibit A - Sample Data Schema 7.b Packet Pg. 247 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 31 SECTION III • Development Plan Exhibits B & C below represent visualization images and Triple-Bottom-Line performance indicators generated in real-time by this V&A Tool. Exhibit B - V&A Tool, Before Data Input Exhibit C - V&A Tool, After Data Input 7.b Packet Pg. 248 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 32 SECTION III • Development Plan 7.b Packet Pg. 249 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 33 SECTION III • Development Plan 7.b Packet Pg. 250 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 34 SECTION III • Development Plan 7.b Packet Pg. 251 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 35 SECTION III • Development Plan 7.b Packet Pg. 252 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 36 7.b Packet Pg. 253 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) SECTION III : Development Plan CONCEPTUAL SITE PLANS,ELEVATIONS & PROJECT SUMMARY 7.b Packet Pg. 254 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 7.b Packet Pg. 255 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 39 SECTION III • Development Plan Working in concert with the Visualization & Analytical Technology described above, we are able to propose different site plan configurations for various densities, heights, uses, etc., and all based upon market feasibility and demand. As these Conceptual Site Plans are further developed, we are proposing to utilize our V&A Technology to generate real-time data outputs measuring the social, environmental, and economic benefits and impacts. Furthermore, we have provided a series of conceptual site plans beginning with the first plan which provides the City with imagery that recreates the Historical Street Grid and completed by a site plan that shows an expanded version for the overall Downtown Redevelopment Area with connections to the Transit Hub and surrounding Downtown destinations. We have prepared this Development Plan Section knowing that the initial RFQ, issued July 11, 2019, and the subsequent RFP, issued February 3, 2020, did not anticipate the significant global impact caused by the COVID-19 pandemic and resulting economic crisis. Our entire Development Team is committed to adapting our thinking and approach with the City and Community Stakeholders as the plan evolves, paying particular attention to all design and programmatic elements that will be affected by this new norm. Conceptual Site Plans, Elevations & Project Summary The co-creation of a socially, environmentally, and economically sustainable development. 7.b Packet Pg. 256 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 40 7.b Packet Pg. 257 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 41 SECTION III • Development Plan Conceptual Site Plan I - Re-establishing the Historic Street Grid The conversion of the Carousel Mall into a lively downtown will begin with the creation of a street grid on the existing mall site, and its parking lots. We suggest both resurrecting and repairing historic street patterns, as well as including several smaller modifications as refinements and suggested improvements. The street grid will connect to the existing downtown streets and emphasizes their hierarchical weight in the downtown urban fabric. Court Street will be continued as the dominant east-west axis, and E and F- Streets will further strengthen existing north-south connectivity. Diagonal blocks, in response to the existing North G Street, will add environmental optimization to the street system, like many historic downtowns in similar climate locations where there is always shade on one side of the street. Further, the diagonal alignment will redirect activities in the west back into the core downtown and towards E and F Streets. The street pattern introduces additional streets mid- block, to create a much more walkable small block structure. Research on urban form has traditionally suggested that smaller city blocks are better for foot traffic, and prominent urbanists have advocated them as key promoters of pedestrian access. Finally, a network of paseos weaves through block structures and creates small scale shaded event locations (placemaking) along narrow walking paths and in shady inner courtyards. 7.b Packet Pg. 258 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 42 SECTION III • Development Plan 7.b Packet Pg. 259 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 43 SECTION III • Development Plan Conceptual Site Plan II - Climate-Smart Urban Forestry Plan A primary goal for the new development is to introduce a higher level of walkability into the downtown core. Walking and other types of human-powered transportation play big role in reducing vehicle miles travelled (VMT), which in turn is the single most effective step we can take to combat climate change. Streets and future buildings will be oriented to create as many shaded sidewalks and pedestrian routes as possible. Thousands of trees will be planted throughout the downtown. The Development Team will work with the city to determine these locations, as well as possibly planting different species in different districts. The cumulative effect is an extensive urban canopy that creates microclimates conducive for walking, biking, jogging, outdoor activities, exercise, trails, and ‘micro-mobility vehicles’ – for both recreational and utility purposes. This robust tree canopy provides other social, ecological, and economic benefits. It reduces the heat island effect, adds beauty, improves air quality, adds habitat for wildlife, improves real estate values, and contributes to an overall sense of wellbeing. 7.b Packet Pg. 260 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 44 SECTION III • Development Plan 7.b Packet Pg. 261 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 45 SECTION III • Development Plan Conceptual Site Plan III - Designing Urban Nodes in Suburbia (UNiS) The new buildings on the carousel mall site will reflect a variety of uses, building types, building heights, mass, bulk and scale modulations, and stylistic appearances. New residential development will provide a range of housing typologies including lofts, live/work units, apartments, condominiums and townhomes. Buildings will be designed to help create an active street environment by assuring that many individual ground-level units will have direct access to/from the sidewalk. They will be complemented by high-quality streetscapes The Team, in concert with the City and Community Stakeholders, should consider the establishment of design guidelines for the creation of distinct neighborhood districts, each with a unique character and architectural vocabulary. A preliminary list may include a Heritage District, an Arts District, an Innovation District, an Entertainment District, etc. When completed, the redevelopment site has the potential to accommodate 2,000 – 3,500 residential units, along with supporting retail, entertainment, commercial and office uses. Building types and heights will be calibrated to satisfy market demand in the new norm. 7.b Packet Pg. 262 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 46 SECTION III • Development Plan 7.b Packet Pg. 263 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 47 SECTION III • Development Plan Conceptual Site Plan IV - Green Roof Environmental Technologies The inclusion of the latest green building designs throughout the redevelopment area will place the City of San Bernardino at the forefront of these innovative technologies. In addition to high-performance technological advances, these roof-top design features also provide placemaking opportunities for people to enjoy. We intend to reduce each building’s energy demand through passive design and smart technical systems, while lowering the embodied carbon through innovative construction strategies and the use of technologies such as cross laminated timber. After maximizing the daylighting potential on each block, individual buildings will have their glazing specifically sized and placed, depending on orientation, adjacencies, sound, and other environmental factors. We will consider high-efficiency heating and/or cooling systems that are appropriate for the local climate. We plan to build green roofs on many of the new structures. Together with heavily insulated building envelopes, they will help insulate the buildings from solar heat gain and minimize energy losses. Green roofs attenuate runoff during and after heavy rain events. They will also become valuable outdoor spaces for private and sometimes public use; and may in some instances include rooftop agriculture and gardens. We will investigate the potential for renewable energy generation on-site, based on carbon-reduction targets and cost efficiency. Renewable energy strategies will consider geothermal sources for cooling, solar panels for hot water generation, natural ventilation and cooling for thermal comfort, and roof-top photovoltaic panels. 7.b Packet Pg. 264 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 48 SECTION III • Development Plan 7.b Packet Pg. 265 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 49 SECTION III • Development Plan Conceptual Site Plan V - Inland Empire Riverwalk Experience In review of the City’s 2009 Vision Plan, we concur that the inclusion of water into the downtown fabric could be a great amenity and a distinguishing feature of the downtown revitalization. We propose a genuine Riverwalk that loops through the new development and has a strategic adjacency to the west extension of Court Street. Our vision includes a central lagoon with boat rentals and gondola rides. Slow footpaths would meander along the water’s edge. In places where water flows through the middle of development blocks, the adjacent buildings will be designed to have two active frontages, street side and water side. The value of such an attraction cannot be overstated. The Riverwalk will enliven downtown with enviable cultural and economic activities. It will also help San Bernardino achieve its ambition to become the prime urban destination for the Inland Empire. 7.b Packet Pg. 266 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 50 SECTION III • Development Plan 7.b Packet Pg. 267 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 51 SECTION III • Development Plan Conceptual Site Plan VI - Unified Development Approach (UDA) & Holistic and Comprehensive Downtown Ecosystem The redevelopment of Carousel Mall should be a catalyst for positive change throughout Downtown San Bernardino. We are encouraged by the City’s expression of interest to expand the City’s vision for a more a holistic and comprehensive downtown redevelopment strategy, which would serve as 21st Century model for the entire State of California. The yellow areas highlighted in this illustration indicate the potential for a preliminary representation of an expanded redevelopment area. As described in Section I:Letter of Introduction, our Team’s unique Unified Development Approach (UDA) provides the opportunity for Downtown San Bernardino property owners to be an integral part of this overall redevelopment opportunity. In other words, in addition to the master developer playing a pivotal role in this redevelopment it is imperative that this be viewed as an inclusive and not an exclusive process, where all parties big and small are involved. 7.b Packet Pg. 268 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 52 SECTION III • Development Plan 7.b Packet Pg. 269 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 53 SECTION III • Development Plan Conceptual Site Plan VII - Urban Mobility Through Land Use and Transportation Connectivity We are keenly aware of the City’s desire to connect the transit hub to the entire downtown through land use and transportation integration. San Bernardino’s outstanding transit hub provides connectivity to many regional destinations in Southern California. The new ARROW rail connection between Redlands and San Bernardino is scheduled to open in the near future, representing yet another enhancement to the City’s current mass transit system. The advent of this rail connection bolsters the opportunity for the City to emerge as “The Destination” for the Inland Empire. The Metrolink station is a major point of interest for downtown growth and related activities. In addition, the vast majority of the Carousel Mall development site is within a short walk of the station. The sbX Rapid Transit Line is an important connector to Cal State University San Bernardino, Loma Linda University and Medical Center, Downtown and the Metrolink station. We are suggesting a trolley route as a downtown connector that makes it convenient and comfortable to reach all downtown destinations. We envision an electric trolley that runs at intervals that are predictable and frequent enough that people will not need to consult a timetable. It should be a genuinely helpful way to get around. We will also strive to work with the City and Community Stakeholders to plan and implement a downtown network of complete streets that accommodate all modes of active transportation. 7.b Packet Pg. 270 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 54 SECTION III • Development Plan 7.b Packet Pg. 271 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 55 SECTION III • Development Plan Final Thoughts “I have lived in Southern California, and practiced as an architect and urban designer, for several decades. I love the natural potential of this place with its near perfect climate, nestled between a beautiful coast and spectacular mountains. But for almost as long as I have lived here, I have also seen local urban patterns as obstacles that prevent us from reaching the full quality of life that is possible and attainable. In my practice as an architect and urban designer, I always attempt to make a difference in our existing communities, one project at a time. But this is not going fast enough considering the massive problems we need to solve as communities. So, I often dream about an urban site large enough where we can leapfrog past development patterns and demonstrate how great life can be in the compact multimodal walkable communities so much is written about. Southern Californians need to see and experience this for themselves, locally. The Carousel Mall site is such a dream opportunity, and Downtown San Bernardino could become this example. It is so exceptional to have 43 acres of prime real estate available to be integrated into an enlarged vision for downtown redevelopment in a city so close to a transit hub. San Bernardino can demonstrate the future for SoCal, a place that shows people a higher quality of urban life, in a vibrant and walkable downtown, with a much smaller carbon footprint that can inspire hope for a sustainable future. San Bernardino can sparkle brightly and become the beacon for the whole state to follow. We just have to believe it can.” Gerhard W. Mayer AIA LEED-AP 7.b Packet Pg. 272 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 56 SECTION III • Development Plan Precedent Riverwalk Imagery Image from 2009 San Bernardino Downtown Vision Plan 7.b Packet Pg. 273 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 57 SECTION III • Development Plan Precedent Building & Public Realm Imagery 7.b Packet Pg. 274 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 58 SECTION III • Development Plan Precedent Building & Public Realm Imagery 7.b Packet Pg. 275 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 59 SECTION III • Development Plan 7.b Packet Pg. 276 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 60 7.b Packet Pg. 277 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) SECTION III : Development Plan PRELIMINARYDEVELOPMENT SCHEDULE& ANTICIPATED PHASING 7.b Packet Pg. 278 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 7.b Packet Pg. 279 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 63 SECTION III • Development Plan Preliminary Development Schedule & Anticipated Phasing The City of San Bernardino has an opportunity to create a development that is second to none in the State of California. In order for this to take place, several moving parts must come together. It is very difficult, and would be disingenuous on our part, to accurately estimate a timeframe for commencement or completion of a project of this magnitude. That should not discourage the City from moving forward in an aggressively responsible manner to fulfill what has been a desire for over a decade. Moreover, RD ICO’s past experience in bringing to life transformative downtown redevelopments of this magnitude will enable us to accelerate overall timeframes with the City in an expeditious manner. That being said, we believe that it is the City’s desire to see a shovel in the ground for elements of the project as quickly as possible. This expediency will come from the City, the Master Developer and Community Stakeholders working collaboratively immediately upon the City’s designation of a Master Developer and Planning Firm. We commend the City for its timing of not only the issuance of an RFP for both a Master Developer and Planning Firm but also for the selection of both in a timely manner, which would allow for the commencement of this process to occur synergistically. In order for an acceleration of elements of the overall project to be developed within a desirable timeframe, it will require a strategy put forth by all interested parties for a standalone construction project within the Downtown Redevelopment Area to commence as expeditiously as possible. In discussions with legal counsel, one possibility would be to review density parameters that could be independent of a General Plan Update through a discretionary process with some expedited CEQA review. If the City desires such a path to move forward, it is our opinion that there could be a shovel in the ground on a Downtown Project within 9-12 months from selection of a Master Developer and execution of appropriate documents. As stated above, once a Master Developer and Planning Firm have been selected, much of the subsequent milestones will be determined by political will, community support and statutory requirements. On the following pages, you will find a schedule for anticipated phasing, with estimates based on the aforementioned variables. It should also be noted that Section II: Letter of Introduction further expounds upon the phasing process within this section. 7.b Packet Pg. 280 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 64 SECTION III • Development Plan 1 PROCESS BEFORE PLAN 5 TRIPLE-BOTTOM-LINE ANALYSIS 6 FORM-BASED ZONING CODE 8 GROUNDBREAKING 7 COMMUNITY BENEFITS AGREEMENT 2 MASTER DEVELOPER 3 CROWDSOURCED PLACEMAKING 4 UNIFIED DEVELOPMENT APPROACH REVITALIZATION ACTION PLAN Our CORE REVITALIZATION METHODOLOGY PRELIMINARY DEVELOPMENT SCHEDULE & PHASING UTILIZING OUR CORE REVITALIZATION METHODOLOGY *For purposes of fulfilling the RFP submittal requirements, we have estimated dates for a preliminary development schedule & phasing by utilizing RD ICO’s Core Revitalization Methodology. The estimated dates are dependent upon the City’s selection of a Master Developer and execution of a Master Developer Agreement, as well as full collaboration throughout the entire Entitlement Process. 7.b Packet Pg. 281 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 65 SECTION III • Development Plan The Starting Gate…PROCESS Before PLAN Process Before Plan – The economic development and revitalization of Downtown San Bernardino through the co-creation of a shared development vision must begin with a partnership between the CITY, COMMUNITY STAKEHOLDERS and MASTER DEVELOPER, and a commitment to place PROCESS Before PLAN. This was made possible by the Mayor and City Councils’ thoughtful decision to continue the RFQ process by issuing an RFP during the December 4th, 2019 City Council Meeting. The City’s forward thinking has made it possible for RD ICO to propose a holistic and comprehensive strategy for the transformative revitalization of Downtown San Bernardino by the RFP’s May 27th, 2020 deadline, which we envision as a starting point for this projects’ development timeline. RFP SUBMISSION DATE: 5/27/20 7.b Packet Pg. 282 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 66 SECTION III • Development Plan Round 2Selection of a MASTER DEVELOPER Create Urban Nodes in Suburbia (UNiS) through a Holistic & Comprehensive Development Strategy. Partnerships Require: SHARED VISION, CONFIDENCE, TRUST THINKING BIG IS OFTEN BETTER AND EASIER! MASTER DEVELOPER SELECTION: *7/15/20 Selection of a Master Developer – Time is of the essence. This transformation can only be accomplished in a responsible manner and time-frame under the auspices of a Master Developer, such as RD ICO, working collaboratively to co-author and implement a shared vision with the Community Stakeholders and the Municipality which is initiated as soon as the City Council officially selects the Master Developer and executes a Master Developer Agreement (“MDA”). This step can be completed within *30 days. In short, the selection of a Master Developer could occur during the City Council’s July 2020 City Council meetings. Hence, we have listed the *July 15th, 2020 Council Meeting for this purpose. 7.b Packet Pg. 283 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 67 SECTION III • Development Plan COMMUNITY OUTREACHCSPM START DATE: *8/15/20 Round 3Crowdsourced Placemaking (CSPM)Our “SECRET SAUCE” Community – Opens Informational OfficeCommunity – Self-NamesCommunity – Signs Triple-Bottom-Line AgreementCommunity – Recruits Thousands of ParticipantsCommunity – Votes on Ideas Posted Crowdsourced Placemaking (CSPM) – Shortly after the City designates RD ICO as the Master Developer, we will initiate our CSPM program by opening a local community engagement office staffed by local residents. This will be completed within 30 days upon the execution of the MDA. Hence, this step could occur by *August 15th, 2020. 7.b Packet Pg. 284 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 68 SECTION III • Development Plan Round 4Unified Development Approach (UDA) Revitalization Action Plan (RAP) Unified Development Approach (UDA) & Recommended Action Plan (RAP) – The UDA and RAP provide San Bernardino with a framework to facilitate a comprehensive, mixed-use TOD strategy that brings together Community Stakeholders, and Private Property Owners to collaboratively create and implement a shared, holistic development vision. The initial component of this inclusive strategy, coupled with completion of the RAP, will take place concurrently with the CSPM process from *August 15th, 2020 through December 15th, 2020. Subsequent efforts will continue to inform the Development Project through completion. UDA & RAP: *08/15/20 - 12/15/20ON-GOING PROCESS SOCIAL-ENVIRONMENTAL-ECONOMICBENEFITS & IMPACTSCEQA 7.b Packet Pg. 285 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 69 SECTION III • Development Plan Round 5Triple-Bottom-Line Analysis Social Responsibility Analysis • Attainable Housing Analysis • Social Impact & Equity Study • Social Returns on Investment (SROI) Environmental Responsibility Analysis • Climate-Smart Development • Healthy Land Use • CEQA & tomorrow’s generation Economic Responsibility Analysis • Job Creation & Economic Development • Sustainable fiscal outcomes • Act now or pay later SOCIAL-ENVIRONMENTAL-ECONOMICBENEFITS & IMPACTSCEQA Triple-Bottom-Line Analysis – RD ICO’s social impact real estate development model provides multi-benefits to San Bernardino and the surrounding region. This process includes completion of CEQA requirement and shall be determined by statutory requirements and in close consultation with the City and its selected Planning Firm. Timeframe: This all-important process will be guided by statutory requirements and in consultation with the City. 7.b Packet Pg. 286 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 70 SECTION III • Development Plan DOWNTOWN SPECIFIC PLANFORM-BASED ZONING Round 6Specific PlanForm-Based Zoning Conventional Zoning (the “Old Norm”)• Separation of uses• Inability to react timely to market conditions Form-Based Zoning (the “New Norm”)• Create live, work, shop, learn, play overlay district• Ability to react timely to market conditions The Intersection of Land Use & Transportation Specific Plan Form-Based Zoning – For truly transformative suburban downtown redevelopment to occur within an expedited timeframe, the Community must be able to adapt to market cycles and preferences in a timely manner. This is most effectively achieved within a Specific Plan utilizing Form-Based Zoning to encourage property owners to aggregate smaller parcels for development through a collaborative process. We envision this as an opportunity to work hand-in-hand with the City and its selected Planning Firm to co-create a Downtown Specific Plan that will catalyze development throughout the downtown in a condensed timeframe. The timeline for this will be formulated in consultation with the City and its Planning Firm. Timeframe: This all-important process will be guided by statutory requirements and in consultation with the City. COMMUNITY BENEFITS AGREEMENT (CBA) CBA WILL BE IMPLEMENTEDSIMULTANEOUS WITH APPROVALS. 7.b Packet Pg. 287 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 71 SECTION III • Development Plan Round 7Community Benefits Agreement (CBA) APPRENTICESHIP PROGRAMS HIRING Mechanisms for Each Municipality • Construction jobs • Contracting opportunities • Permanent jobs & careers Baked into the Zoning. It’s now the Law. Community Benefits Agreement (CBA) – Baked into San Bernardino’s community-driven Form-Based Zoning overlay should be provisions outlining the terms and conditions of a CBA. This mandate will ensure that San Bernardino’s residents, local businesses and contractors are given opportunities for construction jobs, contract awards and careers so that they can also participate in the benefits of this newly created Live, Work, Shop, Learn and Play environment. We believe that a CBA will provide significant benefits to San Bernardino residents and local businesses. The timeframe for this will coincide with the completion of the Specific Plan and Form Based Code and become codified. Our commitment to the inclusion of CBA’s are the hallmark of our continued commitment and serve as further reassurance that “If You Do Good! You’ll Do Well!” COMMUNITY BENEFITS AGREEMENT (CBA) CBA WILL BE IMPLEMENTEDSIMULTANEOUS WITH APPROVALS. 7.b Packet Pg. 288 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) The Finish Line...Groundbreaking What one might perceive as the end of RD ICO’s collaborative revitalization process in fact represents a New Beginning. SHOVEL-READYTIME IS OF THE ESSENCE!!! AND WILL BE DETERMINED BY POLITICAL WILL,COMMUNITY SUPPORT & STATUTORY REQUIREMENTS. 7.b Packet Pg. 289 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) • • SECTION IV : Economic Analysis / Proforma 7.b Packet Pg. 290 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) • • HOLISTIC & COMPREHENSIVEREDEVELOPMENT 7.b Packet Pg. 291 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) SECTION IV : Economic Analysis / Proforma PROFORMA /MARKET STUDY 7.b Packet Pg. 292 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 7.b Packet Pg. 293 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 77 SECTION IV • Economic Analysis / Proforma Throughout the entire economic section below, we have either given examples of specific project proformas or created a larger economic benefits section to show the overall positive financial results that would be derived from this redevelopment effort. We have also repeatedly pointed to the fact that market analyses and studies would subsequently be performed as the elements of the overall project are developed. The recent pandemic has shown that the favored real estate asset classes that provide safety and stability to investors are residential buildings, light industrial and online retail fulfillment centers. RD ICO is proposing to develop a Transformative Downtown Redevelopment Project which includes a sufficient number of residential units to drive demand for a significant amount of appropriate retail, office, hospitality, and entertainment uses. The ultimate densities of these additional uses will be determined by market demand as well as other unforeseen outcomes that will be revealed as we all experience the “New Norm.” The presence and potential expansion of Amazon and other related industry operators, compounded the State’s housing crisis, will serve as further justification for such residential demand. Given that the Developer’s successfully proven methodology of prioritizing Process Before Plan by utilizing a Triple-Bottom- Line approach, it would be disingenuous at this juncture in the Process to provide the City with an overall proforma for the entire 43-acre Carousel Mall Site. In addition, given the magnitude of development potential, in-depth market studies would need to be conducted to determine the proper mix of overall uses and subsequent financial analysis of the foregoing. Furthermore, there exist unknown health-related factors from the current pandemic that could determine development patterns going forward. Based on the above, and subject to the RFP, we have nonetheless provided the City with an economic analysis which is predicated on current market rents for development of new residential product in the City of San Bernardino, considering the highest rents achieved to date in the City. We have also utilized the most updated construction numbers for a current residential project in San Bernardino County. Since each development site has its own specific site plan conditions and no such site has yet been specifically identified, we have chosen to use site plan numbers that assume no unusual site conditions. A sample proforma for a 200-unit project at the Carousel Mall Site is provided later in this section as Exhibit A. The proforma indicates that given present market rents, currently estimated costs for pre-development and development of the above referenced project, the potential for development of this project would be financially unfeasible at this time. Notwithstanding the above, we are extremely confident that by utilizing our unique, proprietary and innovative development solutions described below, we will create a viable and sustainable redevelopment of your Downtown that will serve as a 21st Century model for the State of California and the entire Country. RD ICO has identified three essential components necessary to overcome the financial challenges of development in order to create a feasible path towards a successful, sustainable, and transformational Downtown Redevelopment in San Bernardino. Co-Creating Market Entitlement Certainty: The Development Community must achieve reasonable project returns on their investment (ROI’s) to ensure their participation and financial investment in a project. Entitlement risk is attributable to the initial lack of knowledge about what would be required Proforma / Market Study 7.b Packet Pg. 294 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 78 SECTION IV • Economic Analysis / Proforma when going through the Municipal and Community Stakeholder discretionary approval process. Time is money and when one is able to shave months and sometimes years off of the pre- development approval process, this can result in millions of dollars of savings to developers for significant projects. A good portion of these savings can be passed along to the Community by the creation of certainty in a predictable timeframe. Additionally, time to market risk, which represents the time it takes from the moment the developer makes a financial decision to proceed with a project to the time the project is completed and ready to be leased, is a further incentive for developers to invest in the City. The longer this period extends, the higher the development risk given the possibility of higher future construction costs, higher future interest rates, and future volatility in market conditions. While the sample proforma in Exhibit A demonstrates that a typical project in San Bernardino would not be feasible based on the parameters as stated above, the RD ICO methodology for holistic and comprehensive development has proven to overcome these obstacles. The creation of “certainty” through entitlements has proven itself over-and-over to de-risk capital investments in real estate. The stock market thrives on “certainty” and so does real estate development. In other sections of this RFP response, we discuss extensively our unique “Triple-Bottom-Line” approach in creating market-driven zoning code amendments for the Downtown Redevelopment Area. The purpose of this methodology is to further reduce developer entitlement risk by expediting the Developer’s ability to bring a sustainable mix of development types to market. Essentially, at the time the developer makes the decision to move forward with a project, the fact that the project would be shovel-ready enables the developer to properly time the development consistent with market demand cycles. In order to properly co-create the “Entitlement Certainty” referenced above, RD ICO in concert with Zimmerman Volk Associates (ZVA) supplements the conventional supply/demand analysis ( as described below) with a proprietary Target Market Analysis (“TMA”) which was developed in response to the deficient and antiquated traditional methodologies. This TMA is able to prove that development of not only residential units in the City is viable, but other retail, commercial, entertainment and cultural uses can also be financially feasible. Since conventional supply/demand analyses generally project the continuation of past trends, the projections of “demand” in urban areas are often minimal, if not negative. Supply/demand analysis ignores the potential impact of newly-introduced housing supply on future settlement patterns, which can be substantial when that supply is specifically targeted, and limited, to match the housing preferences and financial capabilities of solely the past and current project area households. In contrast to supply/demand analysis, which is based on supply- side dynamics and baseline demographic projections, TMA can determine the depth and breadth of the potential market derived from the housing preferences and socio-economic characteristics of households in the defined project area, even in locations where no close comparables exist. The TMA employs a variety of significant “predictor variables,” ranging from basic demographic characteristics, such as income qualification and age, to less-frequently considered attributes known as “behaviors,” such as mobility rates, lifestyle choices and purchase preferences. ZVA has refined the analysis through the correlation of more than 500 data points related to housing preferences and consumer and lifestyle characteristics. Through analysis of historical migration and development trends, and employment and commutation patterns, the residential product can be quantified using the TMA. The potential market for new units is then determined by the correlation of a number of factors—including, but not limited to: household mobility rates; median incomes; lifestyle characteristics and housing preferences; the location of the site; and the competitive environment. The end result of this series of filters is the optimum market position—by tenure, building configuration and household type, including specific recommendations for unit sizes, rents and/or prices—and projections of absorption within the local housing context. Use of this creative and innovative method has proven to actually Change Settlement Patterns in such a manner as to result in a project’s financial feasibility. In other words, it’s not 7.b Packet Pg. 295 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 79 SECTION IV • Economic Analysis / Proforma a matter of: “if you build it, they will come;” but, more of a concept that “if you CO-CREATE THE RIGHT PRODUCT in the right market, they will come.” CO-CREATING THE RIGHT PRODUCT: The essential driver of downtown redevelopment is the residential component. That being said, if we view the City’s Downtown as an ecosystem, in order for that ecosystem to flourish, we must include all species, such as retail, commercial, entertainment, cultural, and other uses. With regard to the residential component, there are three segments: The Upper Market Segment which encompasses 15% of overall demand, the Middle Market Segment which encompasses 70% of overall demand and the Below Market Segment with accounts for the remaining 15% of overall demand. The Middle Market represents the opportunity to provide “Attainable Housing” for America’s challenged Middle-Class. This segment of the market has been most significantly impacted by the high development costs in California and other parts of the country. Therefore, a significant focus for RD ICO is to provide financially attainable housing for the largest segment of the market, the forgotten Middle-Class. We start this process of creating the proper Downtown Ecosystem by utilizing RD ICO’s renowned Development Team. We begin with Zimmerman/Volk Associates, Inc. (ZVA) to head up our residential TMA process. Successful Downtown Revitalization begins with the creation “Rooftops.” As stated above, the traditional method of guesstimating what a new development will derive in rents is to do a simple supply-demand analysis, essentially determining what the current rental stock in the marketplace is asking and what residents are willing to pay for this exiting stock of units. However, by specializing in Urban Renewal projects, ZVA has devised this TMA to determine the depth and breadth of the potential market derived from the housing preferences and socio-economic characteristics of households in the defined project area, even in locations where no comparables exist. In other words, by utilizing ZVA’s proprietary approach we can plan for a development that specifically matches the needs and preferences of the residents who desire to live in an urban area with specific characteristics that meet their needs and desires. In summary, ZVA has proven their TMA methodology to be effective in serval hundred Municipalities throughout the Country, The City of Detroit, is a shining example of what was and what could be. Our Development Partner, Jian Torkan, has traveled to the City of Detroit with other San Bernardino Elected Officials and met with Detroit’s Mayor and Staff to see first-hand the successes the City of Detroit has achieved through Community- driven Economic Development that we, as Co-Developers, intend to bring to Downtown San Bernardino. As stated above, the creation of these new Rooftops will serve as the catalyst for inclusion of the additional, much needed and required “species” to create a sustainable and vibrant Downtown Ecosystem. In furtherance of that goal, RD ICO has assembled a Development Team of nationally recognized experts described below. The CLUE Group is a nationally recognized firm specializing in the analysis of Downtown Revitalization as related to both retail and commercial uses. Kennedy Smith, a principal in the CLUE Group also founded the Main Street America organization. The CLUE Group helps community leaders create vibrant downtowns and neighborhood commercial uses. Their work focuses on developing forward-looking economic transformation strategies, with particular emphasis on cultivating locally owned businesses, removing regulatory and financial barriers, creating effective incentives to stimulate new investment, reusing older and historic commercial buildings, and outlining practical implementation plans. Economics & Politics, Inc. is an economic consulting and research firm located in the Inland Empire. The company specializes in the analysis of economic trends, statistical data and job forecasting as well as providing perspicacity on the political and policy issues of one of the most significant and fastest growing regions in the United States, the Inland Empire. Principal John Husing, Ph.D., is renowned and highly regarded for his forward-thinking and in-depth local knowledge. In our discussions with Dr. Husing, he expressed a high-level of enthusiasm to participate in this exciting regional opportunity. The Kosmont Companies is an industry leader in economic development and real estate advisory services specialized in 7.b Packet Pg. 296 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 80 SECTION IV • Economic Analysis / Proforma economic development tools and how best to implement strategies and projects, including the creation of Enhanced Infrastructure Financing Districts (EFID’s). The firm has represented numerous Municipalities in Southern California for the creation and implementation of EIFD’s. RD ICO’s significant relationships with the County of San Bernardino, a key stakeholder for EIFDs, combined with the technical expertise of Kosmont Companies, provides ideal synergies to successfully negotiate and create an EFID for the Carousel Mall site and the redevelopment of the overall Downtown. An EIFD would generate significant funding from the increased property tax revenues generated by the project itself, whereby both the City and the County will benefit by utilizing a portion of the tax increment for bond financing of infrastructure costs and other related improvements necessary for the Downtown Redevelopment. The 33-year old firm understands the needs of the public and private sectors and consistently deliver on successful projects that improve the quality of life for communities while generating market returns for private investors, developers, and corporations. As a result of the Kosmont Companies being on the cutting-edge of real estate trends and their expertise of funding requirements that large-scale redevelopment projects desperately need, RD ICO believes that the Kosmont Companies are an essential member of our Development Team as it relates to the myriad of potential funding solutions and mechanisms identified below. Urban Innovations (UI) is a nationally recognized transportation service firm with offices located in Pennsylvania, California, and Arizona. Their mission is to help municipalities, transit authorities and developers to implement Transit Oriented Development (TOD) projects by maximizing government funding and long-term financial benefits for their projects. Their approach includes establishment of the appropriate transportation strategies and synergies to secure grant funding necessary to make a project’s proforma viable. With this objective in mind, UI has pioneered and developed a proprietary process to maximize Federal, State, Local and private financing for TODs and has overcome the complexities surrounding the implementation of TOD through their construction experience, relationships with developers and knowledge of governmental and private funding mechanisms. UI is in the business of helping local municipalities, transit authorities and developers maximize the benefits of TOD funding for their projects, by helping all stakeholders analyze the wide-range of funding vehicles, outlined below, that could be advantageous to redevelopment efforts. Co-Creating Funding Solutions for the Right Product: The Developer, the Municipality, Community Stakeholders, and appropriate Team Members must work collaboratively to solve the funding challenges that previously existed, which have been exacerbated by the recent pandemic and resulting economic crisis. Development project financing hurdles, including, but not limited to, the high costs of pre-development entitlement and design, land acquisition, infrastructure, and construction, require funding solutions that either currently exist or are sure to be available in the coming months as part of the rebuilding process of our country’s economy. We have assembled below a list of funding mechanisms that we intend to fully explore with the City and Community Stakeholders to ensure that San Bernardino is at the forefront of this anticipated opportunity for economic stimulus funding. It is imperative that the City realizes that in order to be in a position to take advantage of this myriad of funding options, they must demonstrate that they are truly open for business. Prior to the global pandemic, funding for development opportunities had been challenging. Under the current environment that we are in, one might assume that these funding hurdles have become even more difficult to overcome. That being said, we believe very firmly that not only does there still exist enormous opportunities for the City of San Bernardino to avail themselves of, but there is certain to be huge sums of money that will become available through federal, state and local initiatives geared towards rebuilding this country’s economy in the most expedient manner. What we hope is in the forefront of the City’s thought process is that these newly created economic stimulus dollars, of which a significant portion will be designated to real estate development, will be deployed to areas of the country that have significant, transformative shovel-ready projects. We are strongly recommending that the Developer, City, and Community Stakeholders conduct a thorough research of the 7.b Packet Pg. 297 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 81 SECTION IV • Economic Analysis / Proforma funding mechanisms listed below and how they may help solve the challenges associated with this large-scale, holistic, and comprehensive Downtown Redevelopment opportunity. FUNDING MECHANISMS & STRATEGIES Opportunity Zone Funding: Opportunity Zones are select census tracts in which businesses, equipment, and real property can receive investment through special funding. They allow investors to receive federal tax incentives by investing their capital gains into select communities known as Opportunity Zones using special investment vehicles called Opportunity Funds. Opportunity Zones were added to the IRS tax code by the 2017 Tax Cuts and Jobs Act. Since Downtown San Bernardino is located within an Opportunity Zone, it is important that we explore the relevance of this mechanism for redeveloping San Bernardino. Gap Financing Vehicle: Many times, project proformas demonstrate short falls that must be addressed in order for projects to move forward. In certain instances, Gap Funding has been used to bridge these shortfalls. This funding mechanism is often supported by large corporations located within close proximity of the redevelopment area. These companies look at this Gap Funding mechanism in certain instances as a way of them giving back to the community provide d the use of these funds is consistent with their corporate culture. In the case of San Bernardino such companies do exist within the region and it is our job to promote the relevance to this potential transformative redevelopment project. Developer Contributions in Perpetuity: It is time for private developers to step up to the plate and not just talk the talk, but walk the walk. In a community where developer certainty has been provided and translated into an expedited approval process, the potential exists for developers to save hundreds of thousands, if not millions of dollars in predevelopment entitlement costs. Developers, like the stock market, love certainty and where certainty can be provided, this creates the opportunity for developers to give back a portion of income in perpetuity towards endeavors that could help to create and maintain project sustainability for future residents and businesses in San Bernardino. Potential for Tax Deductible Contributions for Private Sector Investments in Attainable Housing: This possibility exists since governments whether federal, state, or local will need to be very creative in order to stimulate the economy as rapidly as possible. We are already in discussions with decision makers and policy makers relative to this concept which has been viewed in a much more positive manner based on the current health crisis experienced by this country. Economic Stimulus Package Funding for Shovel-Ready Projects: The next Stimulus Package is certain to contain funding opportunities for all potential job creation mechanisms. Since approximately 40% of this country’s wealth is represented by the real estate industry there is no doubt that opportunities will be created to stimulate that industry for shovel ready projects. It’s up to the City to commit their resources towards being a part of this solution. PILOT Increment Financing (PIF): PIFs allow local governments to create tax increment financing districts and apply a portion of the proceeds of the PILOT Agreement negotiated with the Developer to fund infrastructure improvements related to the project. A PIF Agreement uses a portion of the future tax revenue from a development over a set term. PIFs, unlike conventional TIFs, are useful because they create fixed dollar payments aimed at eliminating underwriting uncertainty. Taxing jurisdictions do not lose any current tax revenues and often share a portion of future revenues from the development. In sum, PIF financing creates a partnership among tax jurisdictions and private entities to foster economic development and growth in tax base. Most importantly, neither the Municipality nor the Developer are ultimately responsible if these revenue generating estimates are not achieved. It is the bond holders that are assessing the risk return rewards which is what makes this potential mechanism so attractive. Railroad Rehabilitation and Improvement Financing (RRIF): Offers long-term, low-interest loans to projects located in close proximity to existing commuter rail. The program has been modified to offer the potential for funding such uses as parking structures, as well as residential buildings with very favorable loan repayment parameters. Projects must show the 7.b Packet Pg. 298 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 82 SECTION IV • Economic Analysis / Proforma ability for repayment over a 30-year period with the first five years waived and tacked onto the back-end term. In other words, the repayment period is over 35 years and not 30. Transportation Infrastructure Finance and Innovation Act (TIFIA): TIFIA provides credit assistance for qualified projects of regional and national significance. Under certain specific circumstances, it is possible to utilize TIFIA financing opportunities in conjunction with RRIF. Tax Increment Financing (TIF): In this particular case, Tax Increment Financing, or TIF, could provide financing opportunities for infrastructure by diverting a portion of tax revenues generated to help finance development in an area or region. Unlike the above referenced PIF responsibility for repayment of these bonds in most cases is the responsibility of the Municipality and in some cases alongside Developer participation in such responsibility. Enhanced Infrastructure Financing Districts (EIFD’s): Enhanced Infrastructure Financing Districts (EIFDs) allow for a separate government entity to be created by a city or county within a defined area to finance infrastructure projects with community-wide benefits. When formed through a Joint Powers Authority (JPA), an EIFD can be established without voter approval. EIFDs can also finance other community benefit projects, such as childcare centers, affordable housing, and parking facilities. EIFD’s may also finance the purchase, construction, expansion, improvement, and/or seismic retrofitting of a property. EIFD’s are financed through tax increment generated from the growth in property taxes collected from the designated parcels. Because school districts are not permitted to participate in an EIFD, the primary participants in EIFDs will be cities, counties, and special districts. EIFD expert and RD/ICO Development Team consultant, Larry Kosmont reports, “EIFDs can lead the way to further economic development and growth in cities and counties. EIFD tax increment is available for up to 45 years from the date of first bond issuance.” Private Activity Bonds for Qualified Transit-Oriented Development: The term Transit-Oriented Development Bond means any private activity bond issued as part of an issue for the purposes of the acquisition, construction, reconstruction or improvement of land or property that is within one half mile of an existing or planned major public transportation facility including fixed-guideway transit stations (Rail and BRT) designated high speed or existing intercity rail stations, or an intermodal transportation station. Social Impact Investment Funds: Social Impact Investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return. Impact investments can be made in both emerging and developed markets and target a range of returns from below market to market rate, depending on investors’ strategic goals. The City of San Bernardino could represent an attractive redevelopment model for investment by such funds. Value Capture Investment Funds: When a city or county builds a hospital, school, or park, or places a subway stop or a highway off-ramp in a neighborhood, property value in the proximity can increase. Owners of homes or businesses nearby benefit from this increase and are the recipients of this potential benefit. Value capture is the concept of the government and community gaining back some of the benefits generated. Pension Funds: A pension fund is any plan or fund that provides retirement income. Pension funds are pooled monetary contributions from pension plans set up by employers, unions, or other organizations to provide for their employees’ or members’ retirement benefits. Pension funds are the largest investment blocks in most countries and dominate the stock markets where they invest. When managed by professional fund managers, they constitute the institutional investor sector along with insurance companies and investment trusts. Typically, pension funds are exempted from capital gains tax and the earnings on their investment portfolios are either tax-deferred or tax exempt. In many instances pension funds will also invest in real estate often after an exhaustive due diligence process. These investments are typically for large scale transformative projects for municipalities and developers with a track record for performance. 7.b Packet Pg. 299 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 83 SECTION IV • Economic Analysis / Proforma Union Pension Funds: Real Estate and Infrastructure are two of the most favored asset classes for union pension fund investment, since construction of these projects equates to employment for its members. The potential magnitude for the comprehensive redevelopment of San Bernardino could become a very attractive investment for many of these funds. Most if not all of these pension funds are represented by sophisticated pension fund advisors and this strategy is something that should be pursued early on in the process. Infrastructure Banks: Infrastructure banks have become a potential funding source for large scale projects. Recent emphasis has been placed on actual investments made by infrastructure driven funds as an operating business entity for these funds which obviously indicates that many companies see infrastructure investment as a potential profit generator. This possibility should also be explored at the opportune time. Re-Patriotization of Offshore Investments: A restructure of this Re-Patriotization of offshore dollars serves as a potential for funding opportunities for areas of infrastructure investment. A further reduction in taxation of these dollars could serve as an incentive for government to require that the additional savings be mandated for investments in our crumbling infrastructure system. New Markets Tax Credits (NMTC): Historically, economically challenged communities experience a lack of investment, as evidenced by vacant commercial properties. The New Market Tax Credit Program (NMTC Program) was created to break this cycle of disinvestment by attracting the private investment necessary to reinvigorate struggling local economies. State and Federal Grants: The federal government in the past has distributed about $700 billion (17 percent of its budget) to states and localities each year, providing a portion of these governments’ total revenues. In 2017 about 65 percent of the funds were dedicated to health care. The federal government distributes grants to state and local governments for several reasons. In some cases, the federal government may share responsibility for a given service or function because state and local governments have better information about local preferences and costs. In others, the federal government may offer states and localities incentives to undertake additional spending benefiting neighboring jurisdictions or the country as a whole. It is certain that given the current health crisis these amounts are certain to increase exponentially as we look to rebuild the economic viability of this country. As stated above, shovel ready projects are likely to receive the bulk of these opportunities. Transformative Climate Communities (TCC): The Transformative Climate Communities (TCC) Program funds development and infrastructure projects that achieve major environmental, health, and economic benefits in California’s most disadvantaged communities. TCC is one of many California Climate Investment programs. San Bernardino represents a city that can benefit enormously from this TCC program. Parking Revenue Sharing: Provides a share of revenues from parking activities which are in excess of a baseline established to cover ongoing costs of providing parking amenities. The revenues shared may be designated to specific entities and purposes as agreed to by the participating parties. This structure is often formalized in some form of a revenue sharing agreement. SB-2 Planning Grants: SB-2 planning grants provide funding and technical assistance to all local governments in California to help cities and counties prepare, adopt, and implement plans and process improvements that streamline housing approvals and accelerate housing production. It is our understanding that San Bernardino, to their credit, has been awarded an SB-2 Grant in the amount of 3 Million dollars which positions the City to be in the forefront of redevelopment and serve as a model city for social, economic and environmental sustainability. We look forward to the opportunity of working with the City and its selected planning firm to perform this task. Property-based Business Improvement District (PBID): A Property-based Business Improvement District (PBID) is a unique funding tool which allows business district property owners to pool their financial resources by assessing themselves to pay for certain district-wide activities and improvements. PBIDs have been found to be the most effective and fair method to fund business district programs. 7.b Packet Pg. 300 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 84 SECTION IV • Economic Analysis / Proforma Rental Income and Development Summary May 17, 2020 Rental Summary Monthly Rent Annual Apartment Market Unit Type Sq. Ft.Mix Rent Per Sq. Ft.Rent % Plan A (1 Bed / 1 Bath)747 100 $1,390 $1.86 $1,668,000 50% Plan B (2 Bed / 2 Bath)952 100 $1,620 $1.70 $1,944,000 50% Plan C (2 Bed / 2 Bath)1,085 0 $1,720 $1.59 $0 0% Plan D (3 Bed /2 Bath)1,250 0 $1,930 $1.54 $0 0% Total Square Feet / Total Base Rent 169,900 200 $301,000 $1.77 $3,612,000 100% Utilties & Other Reimbursements Qt Rent Annual Rent RUBS Reimbursement Income 200 $80 $192,000 0 $0 $0 0 $0 $0 Total Premiums $16,000 $192,000 Operating Budget Unit/Annual Monthly Annual Percent Total Rent $19,020 $317,000 $3,804,000 100% Vacancy Factor at 4%($761)($12,680)($152,160)-4% Gross Income $18,259 $304,320 $3,651,840 96% Operating Expenses ($7,304)(121,728)($1,460,736)-38% Net Operating Income $10,956 $182,592 $2,191,104 58% 0% Unit Cost Project Cost Total Development Costs $233,447 $46,689,400 Stabalized Valuation Completed Stabilized Value CAP RATE 7%per unit $156,507 $31,301,486 Typical Apartment Proforma for San Bernardino EXHIBIT AEXHIBIT A 7.b Packet Pg. 301 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 85 SECTION IV • Economic Analysis / Proforma May 17, 2020 Development Summary Per SF Avg/Unit Total Percent Number of Units 200 Square Feet 850 169,900 Land Acquisition $6,250 $1,250,000 2.68% Off-Site Directs $2,495 $499,000 1.07% Site Directs $27,451 $5,490,200 11.76% Fees and Permits $30,020 $6,004,000 12.86% Vertical Directs $148.35 $126,023 $25,204,600 53.98% Contingency $12,100 $2,420,000 5.18% General Conditions $9,560 $1,912,000 4.10% Onsite Indirects $870 $174,000 0.37% GC Fee (3.75%)$5,798 $1,159,600 2.48% Developer Fee $2,500 $500,000 1.07% Marketing $2,030 $406,000 0.87% Finance $8,350 $1,670,000 3.58% Total Development Costs $275 $233,447 $46,689,400 100.00% Profit/Loss from Project Project Valuation upon Stabilization $31,301,486 Total Cost of Project $46,689,400 Profit/Loss from Project -$15,387,914 Rental Income and Development Summary Typical Apartment Proforma for San Bernardino EXHIBIT A (Continued) 7.b Packet Pg. 302 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 86 SECTION IV • Economic Analysis / Proforma Rental Comparables Highest Probable Rents Location Rent Bd/Ba Sq.Ft Rent/Ft Remodeled 1 Broadstone Apartment Homes North 1,625.00$ 2/2 986 1.65$ n/a 2 Ridgeline Apartments North 1,725.00$ 2/2 1002 1.72$ n/a 3 Hillside Village Apartments North 1,520.00$ 2/2 910 1.67$ n/a 4 Castlepark Apartments North 1,875.00$ 2/2 900 2.08$ Yes 5 Lido at Shandin Hills Apartments North 1,585.00$ 2/2 898 1.77$ n/a 6 Cresthaven Apartments North 1,700.00$ 2/2 829 2.05$ n/a 7 The Vue Apartment Homes Apartments North 1,595.00$ 2/2 830 1.92$ n/a 8 Kendall Brook Apartments North 1,575.00$ 2/2 970 1.62$ n/a 9 Mountain Gate Apartments North 1,525.00$ 1/1 674 2.26$ n/a *All Comps are from University area of San Bernardino *All Comps are for properties with full amenities and parking *All comps are garden style projects Comp Number & Name 7.b Packet Pg. 303 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 87 SECTION IV • Economic Analysis / Proforma Comp 1 7.b Packet Pg. 304 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 88 SECTION IV • Economic Analysis / Proforma Comp 2 7.b Packet Pg. 305 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 89 SECTION IV • Economic Analysis / Proforma Comp 3 7.b Packet Pg. 306 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 90 SECTION IV • Economic Analysis / Proforma Comp 4 7.b Packet Pg. 307 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 91 SECTION IV • Economic Analysis / Proforma Comp 5 7.b Packet Pg. 308 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 92 SECTION IV • Economic Analysis / Proforma Comp 6 7.b Packet Pg. 309 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 93 SECTION IV • Economic Analysis / Proforma Comp 7 7.b Packet Pg. 310 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 94 SECTION IV • Economic Analysis / Proforma Comp 8 7.b Packet Pg. 311 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 95 SECTION IV • Economic Analysis / Proforma Comp 9 7.b Packet Pg. 312 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 96 7.b Packet Pg. 313 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) SECTION IV : Economic Analysis / Proforma ADDITIONALPROJECT BENEFITS 7.b Packet Pg. 314 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 7.b Packet Pg. 315 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 99 SECTION IV • Economic Analysis / Proforma As stated throughout this Response, it would be disingenuous for us to present forecasted data that would indicate definitive results. That being said, we are very aware of the City’s desire to review certain indicators that could be relied upon based on historical redevelopment results of large-scale mixed-use projects. Since we have repeatedly encouraged the City to think Big and Bold, we have presented below an idea of how San Bernardino can turn its long-awaited Vision into Reality. In our experience, we have worked with several Economic Consultants and are utilizing numerous parameters of their studies to present the big picture of what Additional Project Benefits could be! Job Creation Assumptions: The City of San Bernardino has the exciting potential to create a minimum of 10,000 residential units in its total Downtown Revitalization Area. It is anticipated that the majority of inhabitants of these newly constructed units would be a combination of baby boomers and millennials who are seeking this type of vibrant pedestrian-friendly walkable environment. Using a conservative average of 1.5 persons per unit, this would represent over time, 15,000 new residents living in downtown contributing to this overall resurgence. The addition of these new downtown residents will serve as a magnet for attracting additional visitors to the downtown area, further enhancing the activity levels throughout. It is encouraging to envision that these newly created rooftops, which are essential for downtown redevelopment will be followed simultaneously with up to an additional 1.5 million square feet of retail, restaurant, entertainment, cultural, office and other commercial uses. The net result of this redevelopment will be the creation of a truly live, work, shop, learn and play environment. Furthermore, the fact that the City of San Bernardino has an exceptional Transit Hub, which will be supplemented in the near future by a rail connection between Redlands and San Bernardino. This will create the true urban nodes in suburbia (“UNIS”) atmosphere that is in high demand with such little supply. An often overlooked and important benefit of Downtown Revitalization in a Transit Rich setting is community health and well-being. It has been shown that for every $1,000 of Infrastructure Investment near transit, results in $85 of health- driven productivity, $2000 in construction output, $40 in annual health savings, along with decreased worker absenteeism. If we assume a 10-12 year absorption for the above scenario, there is the potential for the creation of 12,000+ construction job years which translates into 1500-2000 actual annual construction jobs. The creation of thousands of additional permanent jobs and careers further emphasizes the enormous Economic Engine that will be created from this Big and Bold project. The inclusion of a Community Benefits Agreement (CBA) will enable residents, contractors, and businesses to take full advantage of the entire job creation platform. In order for this to take place in a timely manner, we will immediately begin working with the City to create apprenticeship and job training programs to enable these local Stakeholders to prepare for this amazing opportunity. This, when coupled with additional downtown residents, new retail, and other commercial uses, represents a tremendous Additional Project Benefits 7.b Packet Pg. 316 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 100 SECTION IV • Economic Analysis / Proforma amount of additional local spending power for all Stakeholders to benefit from, dramatically reducing the sales leakage to other areas outside of Downtown San Bernardino. Furthermore, when complete, the addition of 11-12 million square feet of mixed-use newly constructed product will result in a tremendous increase in property and sales tax revenues to the City in perpetuity. Of course, as the development parameters are further defined throughout the Pre-Development Entitlement Process, the above preliminary analysis will be advanced and refined. In summary, there is no question that the potential exists for the creation of a multi-billion-dollar positive Socio-Economic Impact in Downtown San Bernardino. “A Legacy in the Making” CONCLUSION With the advent of the COVID-19 pandemic, we believe there will be a significant increase in the numbers of grants available for infrastructure and housing projects. However, time is of the essence, as those projects that are “Shovel-Ready” will immediately consume all the possible Funding. It is critical, that the City and the Developer move expeditiously toward bringing the project to a “Shovel-Ready” status. As a final note, we want to emphasize that in the several decades of experience that our Development Team represents, even when 80% of suggested proven methodologies are followed, it is often the remaining 20% that is not followed that leads to development plans that over time accumulates dust that becomes thicker than the plan itself. Let us look to create that 100% model that will lead to a truly sustainable Redevelopment Project. 7.b Packet Pg. 317 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) • • SECTION V : Transaction Terms & Conditions 7.b Packet Pg. 318 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) • • CONSCIOUS DEVELOPMENT 7.b Packet Pg. 319 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 103 SECTION V • Transaction Terms & Conditions The City of San Bernardino has an enormous opportunity to take advantage of the economic impact potential of an overall Downtown Revitalization. Getting a shovel in the ground as expeditiously as possible is critical to the success of the project. To ensure that this takes place, the process for establishing a Purchase Price must be determined when there is more certainty to the specific elements of the project, including densities and other parameters that are yet to be established. That being said, we realize that the City must adhere to certain disposition requirements of publicly owned real estate. To that end, we fully intend to work with the City and conform to these requirements. The ultimate goal should be to determine the subject property’s Fair Market Value (“FMV”), at a time when the ‘certainty’ of what can be built is established, to enable the City to realize a FMV that encompasses the value of the entire Project as approved. In other words, the “whole,” in terms of Appraised Value, will be far greater than the “sum of the parts.” A precedent methodology for accomplishing these goals would be the utilization of an Appraisal Process for establishing such a FMV. This process could be performed in various ways that would be finalized during the negotiation of development documents. In furtherance of this successfully proven methodology, we are providing sample language for elements of this precedent process which has successfully been used in the past by numerous Municipalities. The following represents language insertions that we believe address all elements of the Transactions Terms and Conditions Section of the RFP. MUNICIPALITY PROPERTY(IES); ACQUISITION, AND PURCHASE During the period of time between the execution of the Master Developer Agreement and the subsequent Approval of all Development Requirements (“Approvals”) and Closing Conditions having been satisfied, the Master Developer agrees to acquire the Municipality Properties for a Purchase Price as set forth below in one (1) or more Closing Notices sent to the Municipality by the Master Developer. Such Purchase Price shall be established by utilizing an Appraisal Process as described below: PURCHASE PRICE AND APPRAISAL PROCESS Appraiser Selection Process. Within thirty (30) days of execution of a Master Developer Agreement, the Master Developer and the Municipality shall select an independent Appraiser to determine the Aggregated Fair Market Residual Land Value (“FMV”) of the Municipality Property(ies), after all Approvals have been ascertained, shown on a parcel by parcel basis in the overall Appraisal (“Appraiser Selection Period” or “ASP”). However, if the Municipality and Developer fail to agree upon a single Appraiser within said ASP, then the Municipality shall select one (1) Appraiser and the Developer shall select one (l) Appraiser and notify each other of their selection within thirty (30) days after the expiration of the ASP. Within thirty (30) days thereafter, the Parties’ selected Appraisers shall select a third Appraiser meeting all requirements of this subsection. All such Appraisers shall be duly licensed by the State of California and possess an MAI, SRA or other equivalent designations and not less Transaction Terms & Conditions 7.b Packet Pg. 320 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 104 SECTION V • Transaction Terms & Conditions than ten (10) years of demonstrable experience in appraising mixed-use developments of a scale similar to the Project. Each such Appraiser shall agree to cooperate with the Parties and each other throughout the Appraisal Process, in good faith, to identify and resolve any potential issues or problems which have the potential to delay, disrupt or otherwise impact the Appraisal Process and/or Appraisal Methodologies as defined below. Appraisals. The Appraiser(s) selected and operating pursuant to the provisions contained herein hereof shall be advised and state within their Scope of Work their Appraisal Methods and assumptions (“Appraisal Methodologies”) as provided for herein. Within sixty (60) days after the appointment of the last Appraiser to be appointed pursuant to the provisions hereof, the Appraiser(s) shall submit to the Parties and the third Appraiser, if applicable, in writing their respective estimate(s) of the then current Appraised Value, as defined below, of the Municipality Property(ies) (the “Appraisals”), which Appraisals shall (i) comply with the Uniform Standards of Professional Appraisal Practice or with other equivalent standards, (ii) be prepared in accordance with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice as set forth by the Appraisal Standards Board of the Appraisal Foundation or with equivalent standards, (iii) be sufficiently informative to support the conclusions stated within the Appraisals, and (iv) present an analysis and report of all Project Costs. Appraisal Methodologies. Prior to the commencement of the Appraisal Process, the Appraiser(s) shall rely upon and utilize the following Appraisal Methodologies to determine the Appraised Value (as defined below) of the Municipality Property(ies): (1) The Appraised Value (“Appraised Value”) shall be the residual land value of the aggregated Municipality Property(ies) identified for acquisition in the Agreement, taking into full account all costs of whatever nature incurred, and projected to be incurred, in connection with the entire Project with all Approvals in place (“Project Costs”). (2) Project hard costs shall be estimated by a third-party independent construction cost estimating firm agreed upon by the consultants for both the Developer and the Municipality within thirty (30) days after issuance by the Municipality of all Approvals. (3) Project soft costs shall be the actual soft costs incurred by the Developer in connection with the Project up to the completion of the Appraisal Process, plus additional soft costs estimated by the Developer which additional costs shall be reasonably consistent with project soft costs for other mixed-use developments in the State of California that are comparable in size and complexity to the Project. Said hard costs and soft costs shall thereafter be subject to the approval of the Appraiser(s) appointed pursuant to the provisions contained herein. (4) The Appraiser(s) shall (a) utilize a rate of return on Project Costs that is commensurate with the development risks associated with the Project and Project Area and that a developer and its institutional financing or other partner(s) would require to execute the entire Project based on the full build out potential of the Approvals as studied under CEQA and (b) shall assume that such rate of return should reflect the time value of Project Costs and market absorption to the extent realization of the appropriate return is delayed by circumstances not the result of Developer’s fault or neglect. (5) Final Appraised Value. Pursuant to the above, if more than one Appraiser has been selected then, prior to submitting their Appraisals, the two Appraisers shall meet to discuss their tentative findings. Within thirty (30) days after the Appraisals are submitted, the Parties shall meet to compare such estimates and if such estimates differ from each other by ten percent (10%) or less of the higher value, the Appraised Value of the Municipality Property(ies) shall be the average of such two Appraisals. If such estimates differ from each other by more than ten percent (10%), the third Appraiser shall be given forty-five (45) days to select one of the two estimates of Appraised 7.b Packet Pg. 321 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 105 SECTION V • Transaction Terms & Conditions Value of the Municipality Property(ies) proposed by the two originally selected Appraisers (i.e., “baseball style arbitration”), said selection to be predicated upon the third Appraiser’s evaluation as to which Appraiser most closely adhered to the Appraisal Methodologies. Such decision of the third Appraiser shall be binding and conclusive upon the Developer and the Municipality. The Appraised Value, as determined by either (A) the sole Appraiser, (B) the average estimate of the first two Appraisers, or (C) the third Appraiser, as the case may be, shall hereafter be referred to as the “Final Appraised Value”. Purchase Price. The Purchase Price for the Municipality Property(ies) shall be the Final Appraised Value (as defined above). Escrow and Payment of Purchase Price. At Closing of Escrow for the subject Municipality Property(ies), the Purchase Price shall be paid by certified check or bank draft to the order of the Municipality, drawn on a bank licensed to do business in the State of California subject to collection, or by wire transfer simultaneously with the delivery of the Deed(s) conveying such Municipality Property(ies) to the Developer. Due Diligence / Closing Conditions. Simultaneously with the negotiation of the Master Developer Agreement, and with the cooperation of the Municipality, RD ICO will agree to perform an expedited Due Diligence Process that will enable them to fully identify the necessary Closing Conditions. Normally, such Closing Conditions would be heavily determined by the Municipality’s Approvals (as defined above), which in many cases could encompass the full requirements to close Escrow. AS PREVIOUSLY STATED, WE WOULD LIKE TO RE-EMPHASIZE THAT THE AFOREMENTIONED TRANSACTION TERMS AND CONDITIONS HAVE BEEN PROVIDED AS AN EXAMPLE OF A PROCESS THAT HAS BEEN SUCCESSFULLY IMPLEMENTED IN OTHER MUNICIPALITIES. WE ARE COMPLETELY OPEN TO DISCUSSING OTHER FORMS OF ARRIVING AT MUTUALLY AGREED UPON ACQUISTION METHODOLOGY AND LOOK FORWARD TO THE OPPORTUNITY OF DEMONSTRATING NOT ONLY OUR ABILITY TO PERFORM, BUT OUR WILLINGNESS TO LISTEN 7.b Packet Pg. 322 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 106 A LEGACY IN THE MAKING 7.b Packet Pg. 323 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) A LEGACY IN THE MAKING 7.b Packet Pg. 324 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) 7.b Packet Pg. 325 Attachment: Attachment 2 - ICO Real Estate Group Proposal - REDUCED (7143 : Carousel Mall - Developer Selection (Ward 1)) Page 1 Staff Report City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Cheryl Weeks, Council Administrative Supervisor Subject: 2021 SCAG General Assembly Delegate and Alternate (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the selection of a Delegate and Alternate to the 2021 Southern California Association of Governments (SCAG) Regional Co nference and General Assembly (GA) May 6, 2021, remote participation only web -conference via Zoom. Background Each year, the City Council appoints a Delegate and Alternate Representative to the Southern California Association of Governments (SCAG) General Assembly (GA). Discussion Each city/county delegate to SCAG's General Assembly will also have an opportunity to bring any policy matter, in the form of a proposed resolution or proposed SCAG bylaw revision, before the General Assembly for determination. The deadline to submit proposed resolutions and/or SCAG bylaw revisions is 5:00 p.m., Friday, March 5, 2021. All proposed resolutions and/or bylaw revisions will be reviewed by SCAG's Bylaws and Resolutions Committee and the Regional Council before being considered at the General Assembly business meeting. 2020-2025 Key Strategic Targets and Goals Selecting a voting delegate and attending the General Business Meeting at the League of California Cities Conference aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community. Fiscal Impact No fiscal impact to city. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the selection of a Delegate and Alternate to the 2021 Southern California Association of Governments (SCAG) Regional Conference and General Assembly (GA) May 6, 2021, remote participation only web -conference via Zoom. 8 Packet Pg. 326 Page 1 Staff Report City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Barbara Whitehorn, Director of Finance Subject: FY 2020/21 Mid-Year Budget Report (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Receive and File the FY 2020/21 Mid-Year Budget Report; 2. Authorize staff to proceed with preparing and solicit ing Requests for Proposals (RFPs) for the replacement of the City’s building and safety permitting system, Public Works work order and asset management system, and financial management payroll and timekeeping system; and 3. Authorize the Director of Finance to Amend the FY 2020/21 Budget as outlined in the FY 2020/21 Mid-Year Budget Report to include recommended changes from the Mayor and City Council. Introduction & Summary Staff presented the FY 2020/21 Mid-Year Report to the Mayor and City Council on February 17, 2021. City Council asked for additional information about specific items in the proposed budget amendment to the General Fund. These items, and City Council recommended alternatives, are reviewed below. Proposed Amendments Included in the mid-year report were budget amendments to the FY 2020/21 operating budget as follows by Fund: Fund One-Time On-Going Total Animal Control Fund 259,000 5,600 264,600 CDBG Fund - 20,700 20,700 General Fund 3,129,000 1,499,700 4,628,700 Low Mod Housing Fund 26,000 - 26,000 Total $3,414,000 $1,526,000 $4,940,000 9 Packet Pg. 327 7150 Page 2 Fleet Fund* 120,000 100,000 220,000 IT Fund* 348,000 60,000 408,000 *Costs in the Fleet and Information Technology Funds, both of which are Internal Service Funds, are charged back to the General Fund and are included in the General Fund total. City Council expressed the need for additional information about some of the specific items requested as part of the amendment to the General Fund, asking that these items be removed or changed, and tha t the amendments be brought back to Mayor and City Council at the next regular meeting, March 3, 2021. Following are the items that the City Council desired to revisit. Staff is presenting them in this report in such a way as to allow City Council to cons ider them severally or collectively. Attachment 1 summarizes the items to be reconsidered, the original proposed item, and any City Council proposed alternatives. City Clerk’s Office ITEM (1) Election Costs, authorization to pay for services received $180,000 One-Time Cost Estimate of election costs to be paid to San Bernardino County While the City does not have a bill from the County for the specific cost at this time, approving this amendment to the General Fund operating budget will allow the City to pay the amount due as soon as a final bill is submitted. Approving this amount does not encumber the funds or commit the City to spending the full amount. ITEM (2) Office Assistant, restoration of services; revenue generating service $7,800 in FY 2020/21, ongoing net cost of $0 with revenue offset Full-Time position, cost includes all benefits Proposed hire date: April 1, 2021 The City ceased passport issuance services as a cost -savings measure during FY 2019/20. The restoration of this position will allo w the City to restore these services to the community. Passport issuance services generate revenue that will offset the cost of the position. Below is a chart of the revenue received from the passport issuance services from 2015 to 2019. Additionally, with this position in place some part-time assistance in the department will no longer be necessary, which will create a savings in FY 2021/22 of $16,500. 9 Packet Pg. 328 7150 Page 3 The average revenue over the five years of the program was $47,600. With this revenue, the position will be cost neutral to the City while at the same time providing support to the Clerk’s Office and a valuable service to the community. ITEM (3) Deputy City Clerk, restoration of staffing $7,000 in FY 2020/21, ongoing cost of $83,100 Full-Time position, cost includes all benefits Proposed hire date: June 1, 2021 This position is necessary to allow the City Clerk’s Office to function effectively. The Office is challenged in day-to-day operations and does not have the capacity to improve responsiveness or services. The Deputy City Clerk will also coordinate the redistricting process and other special projects and programs. Adding the Deputy City Clerk position will ensure that the City can respond to public records requests in a timely manner as legally required, and improve the responsiveness of the office to general resident inquiries. Additionally, this position will process and route contracts, process subpoenas, and assist in agenda preparation. City Council suggested that positions in the City Clerk’s Office could be replaced with interns. While staff supports the hiring of interns, professional staff must be in place to manage any internship program. Additionally, the City must remain in compliance with federal and state law for the employment of interns, the type of position they can occupy and the educational benefit. City Manager’s Office ITEM (4) Public Information Officer (PIO), restoration of staffing $12,000 in FY 2020/21, ongoing cost of $143,000 9 Packet Pg. 329 7150 Page 4 Full-Time position, cost includes all benefits Proposed hire date: June 1, 2021 The City does not have any budgeted positions dedicated to public information and communications as of FY 2020/21. This lack inhibits the City’s ability to communicate news and engage the community. The information vacuum that this creates can leave the community in the position of guessing the plans and motives of the Mayor and City Council and staff. A dedicated professional who can communicate effectively throughout the community, through new and traditional media, will benefit the City as a whole by ensuring transparency, and helping the community to better understand the City’s financial condition, capital plans, policies and programs. City Council proposed that the City Manager’s Office might be better served with an entry level analyst than a PIO this fiscal year, recommending that the PIO position be included as a request in the FY 2021/22 Operating Budget. The cost associated with an Administrative Analyst I is below, assuming a June 1 hire date. ITEM (4a) - Council Recommendation Administrative Analyst I $6,400 in FY 2020/21 and $76,500 ongoing Full-Time position, cost includes all benefits Finance Department ITEM (5) Part-time, temporary assistance in the Budget Office, assistance with budget development $20,000 One-Time Cost Proposed hire date: immediate The Budget Officer recently resigned from the City, leaving only one full-time Senior Management Analyst to manage the budget process, ensure budgetary controls are in place, and work with departments on operating and capital budget requests. The Budget Officer position is posted, but is not anticipated to be filled for another four to six weeks. The department would like to hire a full-time Administrative Analyst I (Budget Analyst) as City Council suggested; however, temporary part-time assistance is recommended to address the department’s immediate needs. The cost for adding an Administrative Analyst I with a May 1 hire date are below: ITEM (5a) - Council Recommendation Administrative Analyst I $12,800 in FY 2020/21 and $76,500 ongoing Full-Time position, cost includes all benefits It is important to note the May 1 hire date; the time from posting a finance professional position to hire is approximately 60 days, which leaves the Budget Office short -staffed at the most critical time of the year. Thus, should Mayor and City Council decide that an analyst should be hired in this fiscal year; staff requests that the department nevertheless be authorized to hire two part-time employees to assist with the budget 9 Packet Pg. 330 7150 Page 5 process. General Government ITEM (6) Relocation of Human Resources (HR), Space needs and HR privacy concerns $51,300 in FY 2020/21, ongoing cost of $83,000 FY 2020/21 cost includes $15,000 for moving and $36,300 for the cost of the lease As the City seeks to hire staff to restore services, space constraints will limit the number of staff that can be brought onboard. The City vacated the Vanir Tower 8th floor as one of the cost savings measures to balance the FY 2020/21 budget, which was developed in the early months of the COVID-19 pandemic. Since then, revenues have significantly rebounded and Measure S passed in November. While it can appear counterintuitive to move back into a space so recently vacated, it is less expensive than were the City to lease or retrofit a space that would meet the department’s needs, connect it to the City’s network and other logistics related to moving to a new location altogether. Vanir Tower is already equipped for the City’s technology needs, as well as having suitable space that does not require significant upgrades or changes to occupy. Moving Human Resources to the 8th floor not only frees space on the 3rd floor for additional staff but also addresses privacy concerns of employees coming to HR for personal or disciplinary issues, while maintaining a single location for the administrative functions of the City which supports efficient operations. Community and Economic Development (CED) ITEM (7) Deputy Director/City Planner, restoration of staffing $14,800 in FY 2020/21, ongoing cost of $176,700 Full-Time position, cost includes all benefits Proposed hire date: June 1, 2021 Over the last three years, Housing, Successor Agency/Economic Development, and Code Enforcement Divisions have been incorporated into CED. Due to the le vel of responsibilities and demands placed upon the Department with the inclusion of these additional divisions, an additional management position is necessary. The Deputy Director responsibilities include directing the City’s planning programs, services a nd staff, with the goal of restoring efficient and timely responses to resident and developer requests. This position would also be assigned oversight of some of the other divisions with the department. With development in San Bernardino growing steadily, existing staff does not have the capacity and technical expertise to handle the volume of increasingly complex requests for services from CED. This position will ensure a level of technical planning expertise in the department that will allow for these requests to be handled in a professional and timely manner. Additionally, hiring a Deputy Director/City Planner will ensure that the City is able to develop, implement and amend City plans to reflect City Council and community goals. 9 Packet Pg. 331 7150 Page 6 At the February 17th Mayor and City Council meeting, City Council suggested that the department might better benefit from the addition of two administrative staff to directly address planning issues, rather than a Deputy Director. In order to address the needs of the department discussed above, staff recommends that in this case, hiring a Senior Planner and a Planning Aide would better address issues related to delays in customer response. These positions would have the expertise to handle complex issues and provide technical assistance. The addition of these two positions would enable the department to respond in a timelier manner to customers. The cost for a Senior Planner and a Planning Aide with a June 1, 2021 hire date are below: ITEM (7a) - Council Recommendation Senior Planner $10,100 in FY 2020/21; $120,900 ongoing Planning Aide $6,700 in FY 2020/21; $80,000 ongoing Full-Time positions, costs include all benefits Police Department ITEM (8) Internet Upgrade, operational necessity; city-wide connectivity $2,000 in FY 2020/21, ongoing cost of $3,000 Improvement to internet connectivity throughout the City Providing sufficient internet capacity is required for access to systems, videos, and conferencing. The City’s internet connection, with one gigabyte (1Gb) capacity, is shared across departments and locations. Critical City software systems are web - hosted, requiring internet connectivity for use, and the migration to Office365 will add even more traffic to the existing connection. In order to provide additional needed capacity, staff requests authorization to move the Police Department internet traffic off of the City Hall connection to a dedicated 1Gb connection. This move allows for a higher total capacity for all City departments, and provides redundancy for the Police Department in case of an internet outage at City Hall. Additionally, this upgrade will provide the capacity to handle surges in traffic such as a 30 -person Zoom meeting conducted alongside regular internet traffic. The Police Department currently has a dedicated 500 megabyte (500Mb) connection used for uploading body cam video. This connection would be upgraded to meet all of the department’s internet capacity needs and take pressure off of the City Hall connection, rather than adding a new service conne ction to either the Police Department or City Hall, which would cost significantly more. This upgrade is critical to ensure that staff in all departments can function effectively. ITEM (9) Recruiting, continuing diversity recruiting efforts; restoring officer vacancies $ 82,000 One-Time, $ 50,000 One-Time, transfer of savings from training budgets $132,000 TOTAL One-Time The Police Department intends to use these funds to continue to increase the City’s recruitment activities and expand efforts targeting hard to reach populations. Since 9 Packet Pg. 332 7150 Page 7 beginning a concerted effort to improve recruiting, the department has seen increases in the applicant pool, the diversity of new hires and new hires with ties to San Bernardino. Since 2019, the department has seen a significant increase in hiring diversity as compared to previous years. The department currently has 23 open officer positions that staff would like to fill before the end of the fiscal year; this funding will aid the department in ensuring that the candidates and new hires represent as closely as possible the diversity of the San Bernardino community. This additional recruitment funding will support the City’s ongoing commitment to aligning the diversity of the Police Department with the diversity of our community. Public Works ITEM (10) Traffic Engineering Associate, restoration of staffing $28,600 in FY 2020/21, ongoing cost of $114,400 Full-Time position, cost includes all benefits Proposed hire date: April 1, 2021 One Traffic Engineering Associate position was unfunded in FY 2020/21 to address anticipated budget deficits. This position is a critical function in our Engineering Division that performs professional engineering work in investigating and analyzing street traffic conditions to determine the need for traffic control measures. Currently the division consists of one Traffic Engineer, one Traffic Engineering Associate, and one part -time Traffic Operations Specialist. Restoration of this position is needed to effectively manage the multiple traffic signal projects, expedite reviews of street improvement plans and to support preparation of plans, specifications and estimates for installation of traffic signal systems. This position will be a key team member in project management oversight of the $10,000,000 Highway Safety Improvement Program (HSIP) awarded to the City to perform upgrades at 224 signalized intersections within the City. City Council proposed that the department hire two Maintenance Workers rather than a Traffic Engineering Associate. In this case, the department recommends that hiring two maintenance workers would enable the department to address maintenance issues throughout the City. Maintenance Worker III - This position is being requested as a Maintenance Worker III in order to provide some years of experience and technical knowledge needed to safely operate equipment and assist crews. Maintenance Worker II - The addition of this position would allow the City to continue to improve timely response to resident service requests in ou r daily program of work. ITEM (10a) - Council Recommendation Maintenance Worker III $17,600 in FY 2020/21; $70,200 ongoing Maintenance Worker II $16,200 in FY 2020/21; $64,500 ongoing Full-Time positions, costs include all benefits Proposed hire date: April 1, 2021 Conclusion 9 Packet Pg. 333 7150 Page 8 It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Receive and File the FY 2020/21 Mid-Year Budget Report; 2. Authorize staff to proceed with preparing and soliciting Requests for Pro posals (RFPs) for the replacement of the City’s building and safety permitting system, Public Works work order and asset management system, and financial management payroll and timekeeping system; and 3. Authorize the Director of Finance to Amend the FY 2020/21 Budget as outlined in the FY 2020/21 Mid-Year Budget Report to include recommended changes from the Mayor and City Council. Attachments Attachment 1 Summary of Revisited Items and Alternatives Attachment 2 Presentation Attachment 3 FY 2020/21 Mid-Year Budget Report Presented 2/17/21(Item #5) Ward: All Synopsis of Previous Council Actions: June 24, 2020 Mayor and City Council adopted Resolution No. 2020-128 approving the City of San Bernardino’s Operating Budget and Capital Improvement Program (CIP) for FY 2019/20. December 2, 2020 Mayor and City Council received and filed the 1st Quarter Budget Report. 9 Packet Pg. 334 ATTACHMENT 1: Summary of Revisited Items and Alternatives Item No. Staff Recommendation Department FY 20/21 Cost Ongoing Cost Item No. Council Alternative FY 20/21 Cost Ongoing Cost 1 Election Costs City Clerk $ 180,000 - 2 Office Assistant City Clerk $ 7,800 * $30,800 3 Deputy City Clerk City Clerk $ 7,000 $ 83,100 4 Public Information Officer City Manager $12,000 $143,000 4a Admin Analyst I $ 6,400 $ 76,500 5 Part-time assistance in Budget Office Finance $ 20,000 - 5a Admin (Budget) Analyst I $ 12,800 $ 76,500 6 Relocation of HR General Gov’t ** $ 51,300 $ 83,000 7 Deputy Director/City Planner Comm. and Econ. Dev. $ 14,800 $176,700 7a Senior Planner Planning Aide $ 10,100 $ 6,700 $120,900 $ 80,000 8 Internet Upgrade Police/All Depts. $ 2,000 $ 3,000 9 Recruitment Funding Police *** $ 132,000 - 10 Traffic Engineering Associate Public Works $ 28,600 $114,400 10a Maintenance Worker II Maintenance Worker III $ 16,200 $ 17,600 $ 64,500 $ 70,200 *Item (2) the ongoing cost for the Office Assistant in the City Clerk’s Office will be offset by the revenue-generating passport issuance program for -0- net ongoing cost. **Item (6) the costs in FY 2020/21 include $36,300 for the lease of the 8th floor of Vanir Tower and $15,000 in moving costs. ***Item (9) includes $50,000 from training savings in FY 20/21 requested to be reassigned to Recruiting/Advertising. Items (4a), (5a) and (7a) are alternatives to Items (4), (5) and (7), respectively, as proposed by Councilmembers at the February 17 Regular meeting. Item (10a) was proposed as an alternative to item (10) by a Councilmember after the meeting. 9.a Packet Pg. 335 Attachment: Attachment 1 - Summary of Revisited Items and Alternatives (7150 : FY 2020/21 Mid-Year FY 2020/21 Mid-Year Budget Report, continued Barbara Whitehorn, Finance Director March 3,2021 9.b Packet Pg. 336 Attachment: Attachment 2 - Presentation (7150 : FY 2020/21 Mid-Year Budget Report (All Wards)) FY 2020/21 Mid-Year Budget Report - Overview Presentation Overview Ø Proposed Amendments –Revisited Items Ø Questions/Discussion 9.b Packet Pg. 337 Attachment: Attachment 2 - Presentation (7150 : FY 2020/21 Mid-Year Budget Report (All Wards)) Amendments –Revisited Items (1) Item (1): Election Costs Ø $180,000 ØEstimate of costs. ØBudget authorization does not encumber the funds or commit to spending the full amount. 9.b Packet Pg. 338 Attachment: Attachment 2 - Presentation (7150 : FY 2020/21 Mid-Year Budget Report (All Wards)) Amendments –Revisited Items (2) Item (2): Office Assistant, City Clerk’s Office Ø Restoring passport services Ø Revenue generating program Ø Cost is net -0-once program is up and running $7,800 in FY 2020/21 Full-time position, cost includes all benefits 9.b Packet Pg. 339 Attachment: Attachment 2 - Presentation (7150 : FY 2020/21 Mid-Year Budget Report (All Wards)) Amendments –Revisited Items (3) Item (3): Deputy City Clerk, City Clerk’s Office Ø Improved responsiveness and customer service Ø Special project capacity Ø Redistricting process coordination $7,000 in FY 2020/21; ongoing cost: $83,100 Full-time position, cost includes all benefits 9.b Packet Pg. 340 Attachment: Attachment 2 - Presentation (7150 : FY 2020/21 Mid-Year Budget Report (All Wards)) Amendments –Revisited Items (4), (4a) Item (4): Public Information Officer (PIO),City Manager’s Office $12,000 in FY 2020/21;ongoing cost: $143,000 Full-time position,cost includes all benefits Item (4a), Council Alternative: Administrative Analyst I,City Manager’s Office $6,400 in FY 2020/21;ongoing cost: $76,500 Full-time position,cost includes all benefits 9.b Packet Pg. 341 Attachment: Attachment 2 - Presentation (7150 : FY 2020/21 Mid-Year Budget Report (All Wards)) Amendments –Revisited Items (5), (5a) Item (5): Temporary,part-time Budget Office assistance,Finance One-Time Cost $20,000 in FY 2020/21 Item (5a), Council Alternative: Administrative Analyst I (Budget Analyst), Finance $12,800 in FY 2020/21;ongoing cost: $76,500 Full-time position,cost includes all benefits 9.b Packet Pg. 342 Attachment: Attachment 2 - Presentation (7150 : FY 2020/21 Mid-Year Budget Report (All Wards)) Amendments –Revisited Items (6) Item (6): Relocation of Human Resources, General Government Ø Lease of 8th Floor, Vanir Tower Ø Addresses space needs Ø HR privacy concerns $51,300 in FY 2020/21; ongoing cost: $83,000 9.b Packet Pg. 343 Attachment: Attachment 2 - Presentation (7150 : FY 2020/21 Mid-Year Budget Report (All Wards)) Amendments –Revisited Items (7), (7a) Item (7): Deputy Director/City Planner,Community and Economic Development $14,800 in FY 2020/21; ongoing cost: $176,700 Full-time position, cost includes all benefits Item (7a), Council Alternative:Senior Planner and Planning Aide,Community and Economic Development Senior Planner $10,100 in FY 2020/21; $120,900 ongoing Planning Aide $6,700 in FY 2020/21; $80,000 ongoing Full-time positions, costs include all benefits 9.b Packet Pg. 344 Attachment: Attachment 2 - Presentation (7150 : FY 2020/21 Mid-Year Budget Report (All Wards)) Amendments –Revisited Items (8) Item (8): Internet Upgrade,Police Department/ City-wide internet Ø 1Gb internet connection shared across all locations Ø High and increasing traffic Ø Upgrading existing 500Mb connection at Police Department Ø Least expensive option Ø Increases capacity for all City operations $2,000 in FY 2020/21;ongoing cost: $3,000 9.b Packet Pg. 345 Attachment: Attachment 2 - Presentation (7150 : FY 2020/21 Mid-Year Budget Report (All Wards)) Amendments –Revisited Items (9) Item (9): Recruiting, Police Department Ø Recent recruiting efforts paying off Ø Goal –diversity of department aligns with diversity of the community Ø 23 open positions to be filled One-Time costs $132,000 in FY 2020/21;$50,000 from training savings 9.b Packet Pg. 346 Attachment: Attachment 2 - Presentation (7150 : FY 2020/21 Mid-Year Budget Report (All Wards)) Amendments –Revisited Items (10), (10a) Item (10): Traffic Engineering Associate,Public Works Traffic Engineering Associate $28,600 in FY 2020/21;$114,400 ongoing Item (10a), Council Alternative:2 Maintenance Workers, Public Works Maintenance Worker III $17,600 in FY 2020/21;$70,200 ongoing Maintenance Worker II $16,200 in FY 2020/21;$64,500 ongoing Full-time positions, costs include all benefits 9.b Packet Pg. 347 Attachment: Attachment 2 - Presentation (7150 : FY 2020/21 Mid-Year Budget Report (All Wards)) Amendments –All Revisited Items Item No.Staff Recommendation Department FY 20/21 Cost Ongoing Cost Item No.Council Alternative FY 20/21 Cost Ongoing Cost 1 Election Costs City Clerk $ 180,000 - 2 Office Assistant City Clerk $ 7,800 * $30,800 3 Deputy City Clerk City Clerk $ 7,000 $83,100 4 Public Information Officer City Manager $12,000 $143,000 4a Adm in Analyst I $ 6,400 $ 76,500 5 Part-time assistance in Budget Office Finance $ 20,000 -5a Adm in (Budget) Analyst I $ 12,800 $ 76,500 6 Relocation of HR General Gov’t ** $ 51,300 $83,000 7 Deputy Director/City Planner Comm. and Econ. Dev. $ 14,800 $176,700 7a Senior Planner Planning Aide $ 10,100 $ 6,700 $120,900 $80,000 8 Internet Upgrade Police/All Depts. $2,000 $3,000 9 Recruitment Funding Police *** $ 132,000 - 10 Traffic Engineering Associate Public W orks $ 28,600 $114,400 10a Maintenance W orker II Maintenance W orker III $ 16,200 $ 17,600 $ 64,500 $ 70,200 9.b Packet Pg. 348 Attachment: Attachment 2 - Presentation (7150 : FY 2020/21 Mid-Year Budget Report (All Wards)) 9.b Packet Pg. 349 Attachment: Attachment 2 - Presentation (7150 : FY 2020/21 Mid-Year Budget Report (All Wards)) 9.c Packet Pg. 350 Attachment: Attachment 3 - FY 2020/21 Mid-Year Budget Report Presented 2/17/21 (Item #5) (7150 : FY 2020/21 Mid-Year Budget Report (All 9.c Packet Pg. 351 Attachment: Attachment 3 - FY 2020/21 Mid-Year Budget Report Presented 2/17/21 (Item #5) (7150 : FY 2020/21 Mid-Year Budget Report (All 9.c Packet Pg. 352 Attachment: Attachment 3 - FY 2020/21 Mid-Year Budget Report Presented 2/17/21 (Item #5) (7150 : FY 2020/21 Mid-Year Budget Report (All 9.c Packet Pg. 353 Attachment: Attachment 3 - 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FY 2020/21 Mid-Year Budget Report Presented 2/17/21 (Item #5) (7150 : FY 2020/21 Mid-Year Budget Report (All Page 1 Staff Report City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Kris Jensen, Director of Public Works Subject: Design Services Agreement for Nicholson Neighborhood Park Improvements (Ward 6) Recommendation Adopt Resolution No. 2021-37 of the Mayor and City Council of the City of San Bernardino, California, approving the award of a Design Services Agreement with RHA Landscape Architects Planners, Inc., in the amount of $215,295 for Design Services for the Nicholson Neighborhood Park Improvements Project (PR21 -006). Background Nicholson Neighborhood Park, located at 2737 West 2 nd Street, is a City-owned 9.52 acre park facility that includes recreational amenities and a community center building. The recreational area of the park currently consists of two baseball diamonds with a concession/score keeper area (restroom included), a community garden, outdoor basketball court, picnic shelter, 10 picnic tables, two barbeque grills, a playground area, restrooms and parking lot. While the park area has continued to see some general community use, the community center building has been closed for programming for a number of years due to financial challenges of the City. Over the past several years, and due to lack of programmed activity at the site, the park has become a target for vandalism. Many of the supporting outbuildings, irrigation, and lighting systems have been damaged beyond repair. During preparation of the FY 2020/21 Capital Improvement Plan (CIP), staff recommended rehabilitation of the park to return the property to a safe and attractive condition. Restoration of the park and its amenities will assist in drawing positive activities back to the area and restore recreational opportunities for the surrounding neighborhood. On June 24, 2020, the Mayor and City Council approved Resolution No. 2020 -128 adopting the City’s Annual Operating Budget for Fiscal Year 2020/21. The budg et included CIP Project PR21-006 for Nicholson Neighborhood Park Improvements (“Project”). Funding to support the Project has been established in the amount of $1,000,000 in Community Development Block Grant (CDBG) funding and $150,000 in Meadowbrook Insurance Claim funds, for a total Project budget of $1,150,000. Recently, staff solicited for professional design services to establish Project plans and 10 Packet Pg. 396 7013 Page 2 provide costing estimates for the Project. Award of these professional services is the next step in allowing staff to move forward with the improvement project. Discussion On October 5, 2020, a Request for Proposals (RFP) for a design service was released to consultants who had previously indicated an interest in receiving solicitations for this type of work. The RFP was also made publicly available on the City’s “Request for Bids” website. On October 29, 2020, five proposals were received by the following f irms: Firm Location Community Works Design Group Riverside, CA David Volz Design Costa Mesa, CA Miller Architectural Corporation Redlands, CA RHA Landscape Architects Planners, Inc. Riverside, CA RJM Design Group, Inc. San Juan Capistrano, CA The proposals were reviewed by a panel of staff members using the City’s standard rating system requirem ents of the RFP and it was determined that all proposals met the requirements of the RFP. However , RHA Landscape Architects Planners, Inc., Community Works Design Group and David Volz Design received the top three rankings and were interviewed by the panel . RHA Landscape Architects Planners, Inc. (RHA) received superior ratings in the areas of related experience, adequacy of staff, completion schedule, depth of understanding of the project and project approach. RHA has extensive experience and successfully completed similar projects for numerous cities Statewide. The panel determined RHA demonstrated the capability to provide design services for Nicholson Neighborhood Park Improvements. The general design elements anticipated for the existing Nicholson Neig hborhood Park site include: • Rehabilitation of the existing ballfields with transition of one field to a Miracle League Field to support handi -capable sports programming. • Replacement of the existing concessions building with a new building to service both ballfields • Renovation of park area restrooms to create compliance with current Americans with Disabilities Act (ADA) requirements • Revitalization of planting throughout the park • Assessment of existing irrigation and utilities to retain or rep lace as required. • Protection of established trees “in -place” • Rehabilitation of parking lot and construction of ADA accessible pathways to ballfields and play areas. Nicholson Park has been serving the surrounding neighborhood in a limited way for many years. With the Miracle League field, new accessible playground areas and 10 Packet Pg. 397 7013 Page 3 other proposed improvements, Nicholson Park will receive a new look and be recreated to better serve the recreational needs of the neighborhood and community. If awarded by the Mayor and City Council, the project design is anticipated to begin in April 2021 and design completion is anticipated for August 2021. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No. 1d: Minimize risk and liability exposure and 1e: Create an asset management plan. Completion of this project will improve the park asset by providing new ADA compliant recreational features and restroom facilities, update outbuildings to meet current ADA requirements, and restore irrigat ion and lighting systems to provide a safe and well maintained community park. Fiscal Impact There is no General Fund Impact associated with this action. Meadowbrook Insurance Claim funding in the amount of $150,000 and CDBG Fund NO. 119 -160-8754 in the amount of $1,000,000 were previously approved by the Mayor and City Council for the Nicholson Neighborhood Park Improvements. Funding for professional design services for the Project will be supported from these accounts as follows: Meadowbrook Bridge Insurance Claim $ 150,000 CDBG Funding (119-160-8754-5504) $ 65,295 Total Design Contract Work $ 215,295 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-37, approving the award of a Design Services Agreement with RHA Landscape Architects Planners, Inc. in the amount of $215,295 for Design Services for the Nicholson Neighborhood Park Improvements Project (PR21 - 006). Attachments Attachment 1 Resolution 2021-37 Attachment 2 Resolution 2021-37; Exhibit "A” - Agreement with RHA Landscape Architects Planners, Inc., Inc. Attachment 3 Location Map Ward: 6 Synopsis of Previous Council Actions: April 15, 2020 The Mayor and City Council approved the City's Draft Fiscal Year 2020-2021 CDBG Action Plan. June 24, 2020 Mayor and City Council adopted Resolution No. 2020-128 approving Capital Improvement Program FY 2020/21. 10 Packet Pg. 398 RESOLUTION NO. 2021-37 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA ADOPT RESOLUTION NO. 2021-XX, APPROVING THE AWARD OF A DESIGN SERVICES AGREEMENT WITH RHA LANDSCAPE ARCHITECTS PLANNERS, INC. IN THE AMOUNT OF $215,295 FOR DESIGN SERVICES FOR THE NICHOLSON NEIGHBORHOOD PARK IMPROVEMENTS PROJECT (PR21-006) WHEREAS, Nicholson Neighborhood Park, located at 2737 West 2nd Street, is a City- owned 9.52 acre park facility: and WHEREAS, the City has previously identified a number of improvements required to address deferred maintenance and restore he park to a safe and well maintained public space for use by the community; and WHEREAS, the Mayor and City Council approved Resolution No. 2020-128 adopting the City’s Annual Operating Budget for Fiscal Year 2020/21 which included Capital Improvement Plan (CIP) PR21-006 - Nicholson Neighborhood Park Improvements (“Project”) and established project budgets in the total amount of $1,150,000; and WHEREAS, in October, 2020 staff released a Request for Proposals (RFP) to provide design services, and to prepare plans and specifications for the Project which resulted in five submittals; and WHEREAS, all five submittals were evaluated and RHA Landscape Architects Planners, Inc. received superior ratings and was ultimately selected to provide design services and prepare plans, specifications and cost estimate (PS&E) for the Project with a total fee of $215,295; and WHEREAS, the City now wishes to enter into a Design Service agreement with RHA Landscape Architects Planners, Inc. to prepare PS&E. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager is hereby authorized to execute a Design Services Agreement, and any supporting documents, for Nicholson Neighborhood Park Improvements Project (PR21-006) with RHA Landscape Architects Planners, Inc. of Redlands in the amount of $215,295 on behalf of the City, attached hereto and incorporated herein as Exhibit “A”. 10.a Packet Pg. 399 Attachment: Attachment 1 - Resolution 2021-37 [Revision 3] (7013 : Design Services Agreement for Nicholson Neighborhood Park Resolution No. 2021-37 SECTION 3. The Director of Finance is hereby authorized to issue a Purchase Order in the total amount of $215,295 utilizing $150,000 from the Meadowbrook Bridge Insurance Claim Fund and $65,295 from CDBG Nicholson Park Improvement Project Fund No. 119-160-8754. SECTION 4. 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 5. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 5. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________, 2021. John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, City Clerk Approved as to form: _________________________________ Sonia Carvalho, City Attorney 10.a Packet Pg. 400 Attachment: Attachment 1 - Resolution 2021-37 [Revision 3] (7013 : Design Services Agreement for Nicholson Neighborhood Park Resolution No. 2021-37 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-37, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 10.a Packet Pg. 401 Attachment: Attachment 1 - Resolution 2021-37 [Revision 3] (7013 : Design Services Agreement for Nicholson Neighborhood Park 1 CITY OF SAN BERNARDINO DESIGN SERVICES AGREEMENT 1. PARTIES AND DATE. This Agreement is made and entered into as March 03, 2021 by and between the City of San Bernardino, a charter city and municipal corporation organized and operating under the laws of the State of California, with its principal place of business at Vanir Tower, 290 North D Street, San Bernardino, California 92401 (“City”), and RHA LANDSCAPE ARCHITECTS PLANNERS. INC. a California – Corporation with its principal place of business at 6800 Indiana Avenue, Suite 245, Riverside, California 92506 (hereinafter referred to as “Designer”). City and Designer are sometimes individually referred to herein as “Party” and collectively as “Parties.” 2. RECITALS. 2.1 City. City is a municipal corporation organized under the laws of the State of California, with power to contract for services necessary to achieve its purpose. 2.2 Designer. Designer desires to perform and assume responsibility for the provision of certain professional design services required by the City on the terms and conditions set forth in this Agreement. Designer warrants that it is fully licensed, qualified, and willing to perform the services required by this Agreement; provided, however, that if Designer is a corporation or other organization, the Project Designer designated pursuant to Section 3.2, and not the Designer itself, shall be fully licensed to practice as an architect and/or engineer in the State of California. 2.3 Project. City desires to engage Designer to render such services for the Nicholson Neighborhood Park Improvements (PR21-006) ("Project") as set forth in this Agreement. 3. TERMS 3.1 Employment of Designer. 3.1.1 Scope of Services. Designer promises and agrees to furnish to City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional design and related services necessary for the full and adequate completion of the Project consistent with the provisions of this Agreement (hereinafter referred to as “Services”). The Services are more particularly described throughout this Agreement, including Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, any exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. All Services performed by Designer shall be subject to the sole and discretionary approval of the City, which approval shall not be unreasonably withheld. Additionally, Designer shall comply with all Federal requirements applicable to the Services as set forth in Exhibit “A-I.” 3.1.2 Term. The term of this Agreement shall be from March 03, 2021 to December 30, 2021, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement for no more than 6 months 10.b Packet Pg. 402 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 2 Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. 3.2 Project Designer; Key Personnel. 3.2.1 Project Designer. Designer shall name a specific individual to act as Project Designer, subject to the approval of City. Designer hereby designates David Black, RLA (License No.789824 (c27)) to act as the Project Designer for the Project. The Project Designer shall: (1) maintain oversight of the Services; (2) have full authority to represent and act on behalf of the Designer for all purposes under this Agreement; (3) supervise and direct the Services using his or her best skill and attention; (4) be responsible for the means, methods, techniques, sequences and procedures used for the Services; (5) adequately coordinate all portions of the Services; and (6) act as principal contact with City and all contractors, consultants, engineers and inspectors on the Project. Any change in the Project Designer shall be subject to the City’s prior written approval, which approval shall not be unreasonably withheld. The new Project Designer shall be of at least equal competence as the prior Project Designer. In the event that City and Designer cannot agree as to the substitution of a new Project Designer, City shall be entitled to terminate this Agreement for cause. 3.2.2 Key Personnel. In addition to the Project Designer, Designer has represented to the City that certain additional key personnel, engineers and consultants will perform the Services under this Agreement. Should one or more of such personnel, engineers or consultants become unavailable, Designer may substitute others of at least equal competence upon written approval of the City. In the event that City and Designer cannot agree as to the substitution of key personnel, engineers or consultants, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel, engineers or consultants who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Designer at the request of the City. The key additional personnel, engineers and consultants for performance of this Agreement are as follows: Doug Grove, President, Landscape Architect, RLA Greg Meek, Principal, Landscape Architect, RLA David Black, Project Manager, Landscape Architect, RLA Jennifer Salazar, Project Manager, Landscape Architect Lauren McHugh, Project Manager, Landscape Architect Andrew Lytle, Project Captain, Landscape Designer Kathy Beatty, Office Manager, Accounting 3.3 Hiring of Consultants and Personnel. 3.3.1 Right to Hire or Employ. Designer shall have the option, unless City objects in writing after notice, to employ at its expense architects, engineers, experts or other consultants qualified and licensed to render services in connection with the planning and/or administration of the Project, and to delegate to them such duties as Designer may delegate without relieving Designer from administrative or other responsibility under this Agreement. Designer shall be responsible for the coordination and cooperation of Designer’s architects, 10.b Packet Pg. 403 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 3 engineers, experts or other consultants. All consultants, including changes in consultants, shall be subject to approval by City in its sole and reasonable discretion. Designer shall notify City of the identity of all consultants at least fourteen (14) days prior to their commencement of work to allow City to review their qualifications and approve to their participation on the Project in its sole and reasonable discretion. 3.3.2 Qualification and License. All architects, engineers, experts and other consultants retained by Designer in performance of this Agreement shall be qualified to perform the Services assigned to them, and shall be licensed to practice in their respective professions, where required by law. 3.3.3 Standards and Insurance. All architects, engineers, experts and other consultants hired by Designer shall be required to meet all of the same standards and insurance requirements set forth in this Agreement, unless other standards or requirements are approved by the City in writing. Unless changes are approved in writing by the City, Designer’s agreements with its consultants shall contain a provision making them subject to all provisions stipulated in this Agreement. 3.3.4 Assignments or Staff Changes. Designer shall promptly obtain written City approval of any assignment, reassignment or replacement of such architects, engineers, experts and consultants, or of other staff changes of key personnel working on the Project. As provided in the Agreement, any changes in Designer’s consultants and key personnel shall be subject to approval by City. 3.3.5 Draftsman and Clerical Support. Draftsmen and clerical personnel shall be retained by Designer at Designer’s sole expense. 3.4 Standard of Care. 3.4.1 Standard of Care. Designer shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals qualified to perform the Services in the same discipline in the State of California, and shall be responsible to City for damages sustained by the City and delays to the Project as specified in the indemnification provision of this Agreement. Without limiting the foregoing, Designer shall be fully responsible to the City for any increased costs incurred by the City as a result of any such delays in the design or construction of the Project. Designer represents and maintains that it is skilled in the professional calling necessary to perform the Services. Designer warrants and represents that all of its employees, architects, engineers, experts and other consultants shall have sufficient skill and experience to perform the Services assigned to them. Finally, Designer represents that it, its employees, architects, engineers, experts and other consultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services assigned to or rendered by them and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Designer shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Designer’s failure to comply with the standard of care provided for herein. 3.4.2 Performance of Employees. Any employee or consultant who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee or 10.b Packet Pg. 404 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 4 consultant who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Designer and shall not be re-employed to perform any of the Services or to work on the Project. 3.5 Laws and Regulations. 3.5.1 Knowledge and Compliance. Designer shall keep itself fully informed of and in compliance with all applicable local, state and federal laws, rules and regulations in any manner affecting the performance of the Services or the Project, and shall give all notices required of the Designer by law. Designer shall be liable, pursuant to the standard of care and indemnification provisions of this Agreement, for all violations of such laws and regulations in connection with its Services. If the Designer performs any work knowing it to be contrary to such laws, rules and regulations, Designer shall be solely responsible for all costs arising therefrom. Designer shall defend, indemnify and hold City, its officials, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations. 3.5.2 Drawings and Specifications. Designer shall cause all drawings and specifications to conform to any applicable requirements of federal, state and local laws, rules and regulations, including the Uniform Building Code, in effect as of the time the drawings and specifications are prepared or revised during the latest phase of the Services described in Exhibit “A” attached hereto. Any significant revisions made necessary by changes in such laws, rules and regulations after this time may be compensated as Additional Services which were not known or reasonably should not have been known by Designer. Designer shall cause the necessary copies of such drawings and specifications to be filed with any governmental bodies with approval jurisdiction over the Project, in accordance with the Services described in Exhibit “A” attached hereto. For the preparation of all such drawings and specifications, the Designer shall use Computer Aided Design Drafting (“CADD”) (e.g., AutoCAD) or other technology acceptable to the Designer and City. 3.5.3 Americans with Disabilities Act. Designer will use its best professional efforts to interpret all applicable federal, state and local laws, rules and regulations with respect to access, including those of the Americans with Disabilities Act (“ADA”). Designer shall inform City of the existence of inconsistencies of which it is aware or reasonably should be aware between federal and state accessibility laws, rules and regulations, as well as any other issues which are subject to conflicting interpretations of the law, and shall provide the City with its interpretation of such inconsistencies and conflicting interpretations. Unless Designer brings such inconsistencies and conflicting interpretations to the attention of the City and requests City’s direction on how to proceed, the Designer’s interpretation of such inconsistencies and conflicting interpretations shall be the sole responsibility and liability of Designer, and the Designer shall correct all plans, specifications and other documents prepared for the Project at no additional cost if its interpretations are shown to be incorrect. In the event that the Designer request’s City’s direction on how to proceed with respect to any inconsistent and/or conflicting interpretation, the Designer shall be responsible to the City only pursuant to the indemnification provisions of this Agreement. 3.5.4 Permits, Approvals and Authorizations. Designer shall provide City with a list of all permits, approvals or other authorizations required for the Project from all federal, state or local governmental bodies with approval jurisdiction over the Project. Designer shall then 10.b Packet Pg. 405 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 5 assist the City in obtaining all such permits, approvals and other authorizations. The costs of such permits, approvals and other authorizations shall be paid by the City. 3.5.5 Water Quality Management and Compliance. (a) Compliance with Water Quality Laws, Ordinances and Regulations. Designer shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limit ation, all applicable provisions of the City’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U.S.C. § 1251 et seq.); the California Porter-Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); and any and all regulations, policies, or permits issued pursuant to any such authority. Designer shall additionally comply with the lawful requirements of the City, and any other municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges. (b) Standard of Care. Designer warrants that all employees and subcontractors shall have sufficient skill and experience to perform the work assigned to them without impacting water quality in violation of the laws, regulations and policies described in Sections 3.5.5(a) of this Agreement. Designer further warrants that it, its employees and subcontractors will receive adequate training, as determined by the City, regarding these requirements as they may relate to the Services. (c) Liability for Non-compliance. (i) Indemnity: Failure to comply with laws, regulations, and ordinances listed in Sections 3.5.5(a) of this Agreement is a violation of federal and state law. Notwithstanding any other indemnity contained in this Agreement, Designer agrees to indemnify and hold harmless the City, its officials, officers, agents, employees and authorized volunteers from and against any and all claims, demands, losses or liabilities of any kind or nature which the City, its officials, officers, agents, employees and authorized volunteers may sustain or incur for noncompliance with the laws, regulations, and ordinances listed above, arising out of or in connection with the Services, except for liability resulting from the sole established negligence, willful misconduct or active negligence of the City, its officials, officers, agents, employees or authorized volunteers. (ii) Defense: City reserves the right to defend any enforcement action or civil action brought against the City for Designer’s failure to comply with any applicable water quality law, regulation, or policy. Designer hereby agrees to be bound by, and to reimburse the City for the costs associated with, any settlement reached between the City and the relevant enforcement entity. (iii) Damages: City may seek damages from Designer for delay in completing the Services caused by Designer’s failure to comply with the laws, regulations and policies described in Section 3.5.5(a) of this Agreement, or any other relevant water quality law, regulation, or policy. 3.5.6 Air Quality. 10.b Packet Pg. 406 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 6 (a) Compliance with Air Quality Laws, Ordinances, and Regulations. Contractor must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the California Air Resources Board (CARB). Contractor shall specifically be aware of the CARB limits and requirements’ application to “portable equipment”, which definition is considered by CARB to include any item of equipment with a fuel-powered engine. Contractor shall indemnify City against any fines or penalties imposed by CARB or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others for whom Contractor is responsible under its indemnity obligations provided for in this Agreement. 3.6 Independent Contractor. 3.6.1 Control and Payment of Subordinates. City retains Designer on an independent contractor basis and Designer is not an employee of City. Designer is not an employee for state tax, federal tax or any other purpose, and is not entitled to the rights or benefits afforded to City’s employees. Any additional personnel performing the Services under this Agreement on behalf of Designer shall also not be employees of City, and shall at all times be under Designer’s exclusive direction and control. Designer shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Designer shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance. 3.7 Schedule of Services. 3.7.1 Designer Services. Designer shall fully and adequately complete the Services described in this Agreement and in Exhibit “A” attached hereto and incorporated herein by reference. 3.7.2 Timely Performance Standard. Designer shall perform all Services hereunder as expeditiously as is consistent with professional skill and care, as well as the orderly progress of the Project work so as not to be the cause, in whole or in part, of delays in the completion of the Project or in the achievement of any Project milestones, as provided herein. Specifically, Designer shall perform its Services so as to allow for the full and adequate completion of the Project within the time required by the City and within any completion schedules adopted for the Project. Designer agrees to coordinate with City’s staff, contractors and consultants in the performance of the Services, and shall be available to City’s staff, contractors and consultants at all reasonable times. 3.7.3 Performance Schedule. Designer shall prepare an estimated time schedule for the performance of Designer’s Services, to be adjusted as the Project proceeds. Such schedule shall be subject to the City’s review and approval, which approval shall not be unreasonably withheld, and shall include allowances for periods of time required for City’s review and approval of submissions, and for approvals of authorities having jurisdiction over Project approval and funding. If City and Designer cannot mutually agree on a performance schedule, City shall have the authority to immediately terminate this Agreem ent. The schedule shall not be exceeded by Designer without the prior written approval of City. If the Designer’s Services are not completed within the time provided by the agreed upon performance schedule, or any milestones established therein, it is understood, acknowledged and agreed that the City 10.b Packet Pg. 407 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 7 will suffer damage for which the Designer will be responsible pursuant to the indemnification provision of this Agreement. 3.7.4 Excusable Delays. Any delays in Designer’s work caused by the following shall be added to the time for completion of any obligations of Designer: (1) the actions of City or its employees; (2) the actions of those in direct contractual relationship with City; (3) the actions of any governmental agency having jurisdiction over the Project; (4) the actions of any parties not within the reasonable control of the Designer; and (5) Force Majeure Event. Neither the City nor the Designer shall be liable for damages, liquidated or otherwise, to the other on account of such delays. Such a non-compensable adjustment shall be Designer’s sole and exclusive remedy for such delays and the Designer will not receive an adjustment to the contract price or any other compensation. A Force Majeure Event shall mean an event that materially affects a party’s performance and is one or more of the following: (1) Acts of God or other natural disasters occurring at the project site; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the work); (4) pandemics, epidemics or quarantine restrictions; and (5) strikes and other organized labor action occurring at the project site and the effects thereof on the work, only to the extent such strikes and other organized labor action are beyond the control of Designer and its subcontractors, of every tier, and to the extent the effects thereof cannot be avoided by use of replacement workers. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of the City in its capacity as a municipal authority. 3.7.5 Request for Excusable Delay Credit. The Designer shall, within fifteen (15) calendar days of the beginning of any excusable delay, notify the City in writing of the causes of delay (unless City grants in writing a further period of time to file such no tice prior to the date of final payment under the Agreement). City will then ascertain the facts and the extent of the delay, and grant an extension of time for completing the Services when, in its sole judgment, the findings of fact justify such an extension. The City’s findings of fact thereon shall be final and conclusive on the parties. Extensions of time shall apply only to that portion of the Services affected by the delay and shall not apply to other portions of the Services not so affected. The sole remedy of Designer for extensions of time shall be an extension of the performance time at no cost to the City. If Additional Services are required as a result of an excusable delay, the parties shall mutually agree thereto pursuant to the Additional Services provision of this Agreement. Should Designer make an application for an extension of time, Designer shall submit evidence that the insurance policies required by this Agreement remain in effect during the requested additional period of time. 3.8 Additional Designer Services. 3.8.1 Request for Services. At City’s request, Designer may be asked to perform services not otherwise included in this Agreement, not included within the basic services listed in Exhibit “A” attached hereto, and/or not customarily furnished in accordance with generally accepted design practice. 3.8.2 Definition. As used herein, “Additional Services” mean: (1) any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary for the Designer to perform at the execution of this Agreement; or (2) any work listed as Additional Services in Exhibit “A” attached 10.b Packet Pg. 408 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 8 hereto. Designer shall not perform, nor be compensated for, Additional Services without prior written authorization from City and without an agreement between the City and Designer as to the compensation to be paid for such services. City shall pay Designer for any approved Additional Services, pursuant to the compensation provisions herein, so long as such services are not made necessary through the fault of Designer pursuant to the indemnification provision of this Agreement. 3.8.3 Examples of Additional Services. Such Additional Services shall not include any redesign or revisions to drawings, specifications or other documents when such revisions are necessary in order to bring such documents into compliance with applicable laws, rules, regulations or codes of which Designer was aware or should have been aware pursuant to the laws and regulations provision of this Agreement above. Such Additional Services may include, but shall not be limited to: (a) Separately Bid Portions of Project. Plan preparation and/or administration of work on portions of the Project separately bid. (b) Furniture and Interior Design. Assistance to City, if requested, for the selection of moveable furniture, equipment or articles which are not included in the Construction Documents. (c) Fault of Contractor. Services caused by delinquency, default or insolvency of contractor, or by major defects in the work of the contractor, provided that any such services made necessary by the failure of Designer to detect and report such matters when it reasonably should have done so shall not be compensated. (d) Inconsistent Approvals or Instructions. Revisions in drawings, specifications or other documents when such revisions are inconsistent with written approvals or instructions previously given and are due to causes beyond the control of Designer. (e) Legal Proceedings. Serving as an expert witness on City's behalf or attending legal proceedings to which the Designer is not a party. (f) Damage Repair. Supervision of repair of damages to any structure. (g) Extra Environmental Services. Additional work required for environmental conditions (e.g. asbestos or site conditions) not already contemplated within the Designer's services for the Project. 3.9 City Responsibilities. City’s responsibilities shall include the following: 3.9.1 Data and Information. City shall make available to Designer all necessary data and information concerning the purpose and requirements of the Project, including scheduling and budget limitations, objectives, constraints and criteria. As part of the budget limitation information, the City shall provide the Designer with a preliminary construction budget (“City’s Preliminary Construction Budget”). 3.9.2 Project Survey. If required pursuant to the scope of the Project and if requested by Designer, City shall furnish Designer with, or direct Designer to procure at City’s expense, a survey of the Project site prepared by a registered surveyor or civil engineer, any 10.b Packet Pg. 409 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 9 other record documents which shall indicate existing structures, land features, improvements, sewer, water, gas, electrical and utility lines, topographical information and boundary dimensions of the site, and any other such pertinent information. 3.9.3 Bid Phase. Distribute Construction Documents to bidders and conduct the opening and review of bids for the Project. 3.9.4 Testing. Retain consultant(s) to conduct chemical, mechanical, soils, geological or other tests required for proper design of the Project, and furnish such surveys, borings, test pits, and other tests as may be necessary to reveal conditions of the site which must be known to determine soil condition or to ensure the proper development of the required drawings and specifications. 3.9.5 Required Inspections and Tests. Retain consultant(s) to conduct materials testing and inspection or environmental/hazardous materials testing and inspection pursuant to any applicable laws, rules or regulations. 3.9.6 Fees of Reviewing or Licensing Agencies. Directly pay or reimburse the payment of all fees required by any reviewing or licensing agency, or other agency having approval jurisdiction over the Project. 3.9.7 City’s Representative. The City hereby designates Robert D. Field, City Manager or his or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Contract. Representative hereby designates Alex Qishta, Deputy DPW/ City Engineer, or his or her designee, as the City’s contact for the implementation of the Services hereunder. Contractor shall not accept direction or orders from any person other than the City’s Representative or his or her designee. 3.9.8 Review and Approved Documents. Review all documents submitted by Designer, including change orders and other matters requiring approval by the City Council or other officials. City shall advise Designer of decisions pertaining to such documents within a reasonable time after submission, so as not to cause unreasonable delay as provided in the excusable delay provisions of this Agreement above. 3.10 Compensation. 3.10.1 Designer’s Compensation for Basic Services. City shall pay to Designer, for the performance of all Services rendered under this Agreement, the total not to exceed amount of Two Hundred Fifteen Thousand and Two hundred Ninety Five Dollars ($215,295) (“Total Compensation”). This Total Compensation amount shall be based upon, and may be adjusted according to, the fee schedule and related terms and conditions attached hereto as Exhibit “B” and incorporated herein by reference. The Total Compensation, as may be adjusted upon mutual agreement, shall constitute complete and adequate payment for Services under this Agreement. 3.10.2 Payment for Additional Services. At any time during the term of this Agreement, City may request that Designer perform Additional Services. As used herein, Additional Services means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement. Any additional work in excess of this amount 10.b Packet Pg. 410 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 10 must be approved by the City. If authorized, such Additional Services will be compensated at the rates and in the manner set forth in Exhibit “C” attached hereto and incorporated herein by reference, unless a flat rate or some other form of compensation is mutually agreed upon by the parties. If City requires Designer to hire consultants to perform any Additional Services, Designer shall be compensated therefore at the rates and in the manner set forth in Exhibit “C” attached hereto and incorporated herein by reference, unless a flat rate or some other form of compensation is mutually agreed upon by the parties. City shall have the authority to review and approve the rates of any such consultants. In addition, Designer shall be reimbursed for any expenses incurred by such consultants pursuant to the terms and conditions of Section 3.10.3. 3.10.3 Reimbursable Expenses. Reimbursable expenses are in addition to compensation for the Services and Additional Services. Designer shall not be reimbursed for any expenses unless authorized in writing by City, which approval may be evidenced by inclusion in Exhibit “C” attached hereto. Such reimbursable expenses shall include only those expenses which are reasonably and necessarily incurred by Designer in the interest of the Project. Designer shall be required to acquire prior written consent in order to obtain reimbursement for the following: (1) extraordinary transportation expenses incurred in connection with the Project; (2) out-of-town travel expenses incurred in connection with the Project; (3) fees paid for securing approval of authorities having jurisdiction over the Project; (4) bid document duplication costs in excess of $1,000; and (5) other costs, fees and expenses in excess of $1,000. 3.10.4 Payment to Designer. Designer’s compensation and reimbursable expenses shall be paid by City to Designer no more often than monthly. Such periodic payments shall be made based upon the percentage of work completed, and in accordance with the phasing and funding schedule provided in Exhibit “B” and the compensation rates indicated in Exhibit “C” attached hereto and incorporated herein by reference. In order to receive payment, Designer shall present to City an itemized statement which indicates Services performed, percentage of Services completed, method for computing the amount payable, and the amount to be paid at the address listed in Section 3.29. The statement shall describe the amount of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement, as well as those expenses for which reimbursement is requested for that statement period. The amount paid to Designer shall never exceed the percentage amounts authorized by the phasing and funding schedule located in Exhibit “B” attached hereto. City shall, within thirty (30) days of receiving such statement, review the statement and pay all approved charges thereon pursuant to the provisions of Civil Code Section 3320. Disputed amounts shall be resolved by the parties in a mutually agreeable manner. Payments made for Additional Services shall be made in installments, not more often than monthly, proportionate to the degree of completion of such services or in such other manner as the parties shall specify when such services are agreed upon, and in accordance with any authorized fee or rate schedule. In order to receive payment, Designer shall present to City an itemized statement which indicates the Additional Services performed, percentage of Additional Services completed, method for computing the amount payable, and the amount to be paid. The statement shall describe the amount of Additional Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. City shall, within thirty (30) days of receiving such statement, review the statement and pay all approved charges thereon pursuant to the provisions of Civil 10.b Packet Pg. 411 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 11 Code Section 3320. Disputed amounts shall be resolved by the parties in a mutually agreeable manner. Upon cancellation or termination of this Agreement, Designer shall be compensated as set forth in the termination provision herein. 3.10.5 Withholding Payment to Designer. The City may withhold payment, in whole or in part, to the extent reasonably necessary to protect the City from claims, demands, causes of action, costs, expenses, liabilities, losses, damages, or injuries of any kind to the extent arising out of or caused by the negligence, recklessness, or willful misconduct protected under the indemnification provisions of this Agreement. Failure by City to deduct any sums from a progress payment shall not constitute a waiver of the City’s right to such sums. The City may keep any moneys which would otherwise be payable at any time hereunder and apply the same, or so much as may be necessary therefor, to the payment of any expenses, losse s, or damages as determined by the City, incurred by the City for which Designer is liable under the Agreement or state law. Payments to the Designer for compensation and reimbursable expenses due shall not be contingent on the construction, completion or ultimate success of the Project. Payment to the Designer shall not be withheld, postponed, or made contingent upon receipt by the City of offsetting reimbursement or credit from parties not within the Designer’s reasonable control. 3.10.6 Prevailing Wages. Designer is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Designer agrees to fully comply with and to require its consultants to fully comply with such Prevailing Wage Laws. City shall provide Designer with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Designer shall make copies of the prevailing rates of per diem wages for each craft; classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Designer’s principal place of business and at the Project site. Designer shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure of the Designer or its consultants to comply with the Prevailing Wage Laws. It shall be mandatory upon the Designer and all subconsultants to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4. 3.10.7 Registration. If the Services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Designer and all subconsultants performing such Services must be registered with the Department of Industrial Relations. Designer shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. Notwithstanding the 10.b Packet Pg. 412 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 12 foregoing, the contractor registration requirements mandated by Labor Code S ections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1. 3.10.8 Labor Compliance. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Designer’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Designer or any subcontractor that affect Designer’s performance of Services, including any delay, shall be Designer’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Designer caused delay and shall not be compensable by the City. Designer shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Designer or any subcontractor. 3.11 Notice to Proceed. Designer shall not proceed with performance of any Services under this Agreement unless and until the City provides a written notice to proceed. 3.12 Termination, Suspension and Abandonment. 3.12.1 Grounds for Termination; Designer’s Termination for Cause. City hereby reserves the right to suspend or abandon, at any time and for any reason, all or any portion of the Project and the construction work thereon, or to terminate this Agreement at any time with or without cause. Designer shall be provided with at least seven (7) days advanced written notice of such suspension, abandonment or termination. In the event of such suspension, abandonment or termination, Designer shall be paid for Services and reimbursable expenses rendered up to the date of such suspension, abandonment or termination, pursuant to the schedule of payments provided for in this Agreement, less any claims against or damages suffered by City as a result of the default, if any, by Designer. Designer hereby expressly waives any and all claims for damages or compensation arising under this Agreement, except as set forth herein, in the event of such suspension, abandonment or termination. Designer may terminate this Agreement for substantial breach of performance by the City such as failure to make payment to Designer as provided in this Agreement. 3.12.2 City’s Suspension of Work. If Designer’s Services are suspended by City, City may require Designer to resume such Services within ninety (90) days after written notice from City. When the Project is resumed, the Total Compensation and schedule of Services shall be equitably adjusted upon mutual agreement of the City and Designer. 3.12.3 Documents and Other Data. Upon suspension, abandonment or termination, Designer shall provide to City all preliminary studies, sketches, working drawings, specifications, computations, and all other Project Documents, as defined below, to which City would have been entitled at the completion of Designer’s Services under this Agreement. Upon payment of the amount required to be paid to Designer pursuant to the termination provisions of this Agreement, City shall have the rights, as provided in this Agreement hereinafter, to use such Project Documents prepared by or on behalf of Designer under this Agreement. Designer shall make such documents available to City upon request and without additional compensation other than as may be approved as a reimbursable expense. 10.b Packet Pg. 413 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 13 3.12.4 Employment of other Designers. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 3.13 Ownership and Use of Documents; Confidentiality. 3.13.1 Ownership. All plans, specifications, original or reproducible transparencies of working drawings and master plans, preliminary sketches, design presentation drawings, structural computations, estimates and any other documents prepared pursuant to this Agreement, including, but not limited to, any other works of authorship fixed in any tangible medium of expression such as writings, physical drawings and data magnetically or otherwise recorded on computer diskettes (hereinafter referred to as the “Project Documents”) shall be and remain the property of City. Although the official copyright in all Project Documents shall remain with the Designer or other applicable subcontractors or consultants, the Project Documents shall be the property of City whether or not the work for which they were made is executed or completed. Within thirty (30) calendar days following completion of the Project, Designer shall provide to City copies of all Project Documents required by City. In addition, Designer shall retain copies of all Project Documents on file for a minimum of fifteen (15) years following completion of the Project, and shall make copies available to City upon the payment of reasonable duplication costs. Before destroying the Project Documents following this retention period, Designer shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents. 3.13.2 Right to Use. Designer grants to City the right to use and reuse all or part of the Project Documents, at City’s sole discretion and with no additional compensation to Designer, for the following purposes: (a) The construction of all or part of this Project. (b) The repair, renovation, modernization, replacement, reconstruction or expansion of this Project at any time; (c) The construction of another project by or on behalf of the City for its ownership and use; City is not bound by this Agreement to employ the services of Designer in the event such documents are used or reused for these purposes. City shall be able to use or reuse the Project Documents for these purposes without risk of liability to the Designer or third parties with respect to the condition of the Project Documents, and the use or reuse of the Project Documents for these purposes shall not be construed or interpreted to waive or limit City’s right to recover for latent defects or for errors or omissions of the Designer. Any use or reuse by City of the Project Documents on any project other than this Project without employing the services of Designer shall be at City’s own risk with respect to third parties. If City uses or reuses the Project Documents on any project other than this Project, it shall remove the Designer’s seal from the Project Documents and hold harmless Designer and its officers, directors, agents and employees from claims arising out of the negligent use or re- use of the Project Documents on such other project. 3.13.3 License. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify or reuse any and all Project Documents and any intellectual 10.b Packet Pg. 414 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 14 property rights therein. Designer shall require any and all subcontractors and consultants to agree in writing that City is granted a non-exclusive and perpetual license for the work of such subcontractors or consultants performed pursuant to this Agreement. 3.13.4 Right to License. Designer represents and warrants that Designer has the legal right to license any and all copyrights, designs and other intellectual property embodied in the Project Documents that Designer prepares or causes to be prepared pursuant to this Agreement. Designer shall indemnify and hold City harmless pursuant to the indemnification provisions of this Agreement for any breach of this Section. Designer makes no such representation and warranty in regard to previously prepared designs, plans, specifications, studies, drawings, estimates or other documents that were prepared by design professionals other than Designer and provided to Designer by City. 3.13.5 Confidentiality. All Project Documents, either created by or provided to Designer in connection with the performance of this Agreement, shall be held confidential by Designer to the extent they are not subject to disclosure pursuant to the Public Records Act. All Project Documents shall not, without the written consent of City, be used or reproduced by Designer for any purposes other than the performance of the Services. Designer shall not disclose, cause or facilitate the disclosure of the Project Documents to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Designer which is otherwise known to Designer or is generally known, or has become known, to the related industry shall be deemed confidential. Designer shall not use City’s name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the written consent of City. 3.14 Indemnification. 3.14.1 To the fullest extent permitted by law, Designer shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Designer, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Designer’s services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Designer's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Designer, the City, its officials, officers, employees, agents, or volunteers. 3.14.2 If Designer’s obligation to defend, indemnify, and/or hold harmless arises out of Designer’s performance of “design professional” services (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Designer’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Designer, and, upon Designer obtaining a final adjudication by a court of competent jurisdiction, Designer’s liability for such claim, including the cost to defend, shall not exceed the Designer’s proportionate percentage of fault. 3.15 Insurance. Designer shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this 10.b Packet Pg. 415 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 15 Section. In addition, Designer shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section. 3.15.1 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, Designer shall, at its expense, procure and maintain in full force and effect for the duration of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Designer agrees to amend, supplement or endorse the policies to do so. 3.15.2 Additional Insured. The City of San Bernardino, its officials, officers, employees, agents, and volunteers shall be named as additional insureds on Designer’s and its subconsultants’ policies of commercial general liability and automobile liability insurance using the endorsements and forms specified herein or exact equivalents. 3.15.3 Commercial General Liability (a) The Designer shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City. (b) Coverage for Commercial General Liability insurance shall be at least as broad as the following: Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. Commercial General Liability Insurance must include coverage for the following: (1) Bodily Injury and Property Damage (2) Personal Injury/Advertising Injury (3) Premises/Operations Liability (4) Products/Completed Operations Liability (5) Aggregate Limits that Apply per Project (6) Explosion, Collapse and Underground (UCX) exclusion deleted (7) Contractual Liability with respect to this Contract (8) Broad Form Property Damage (9) Independent Consultants Coverage (c) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement. 10.b Packet Pg. 416 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 16 (d) The policy shall give City, the City Council and each member of the City Council, its officers, employees, agents and City designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. (e) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured. 3.15.4 Automobile Liability (a) At all times during the performance of the work under this Agreement, the Designer shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City. (b) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto). (c) The policy shall give City, the City Council and each member of the City Council, its officers, employees, agents and City designated volunteers additional insured status. (d) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention. 3.15.5 Workers’ Compensation/Employer’s Liability (a) Designer certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self -insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement. (b) To the extent Designer has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Designer shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Designer shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this Section. 3.15.6 Professional Liability (Errors and Omissions) (a) At all times during the performance of the work under this Agreement the Designer shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and 10.b Packet Pg. 417 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 17 in an amount indicated herein. This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Designer. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. 3.15.7 Minimum Policy Limits Required (a) The following insurance limits are required for the Agreement: Combined Single Limit Commercial General Liability $1,000,000 per occurrence/ $2,000,000 aggregate for bodily injury, personal injury, and property damage Automobile Liability $1,000,000 per occurrence for bodily injury and property damage Employer’s Liability $1,000,000 per occurrence Professional Liability $1,000,000 per claim and aggregate (errors and omissions) (b) Defense costs shall be payable in addition to the limits. (c) Requirements of specific coverage or limits contained in this Section are not intended as a limitation on coverage, limits, or other requirement , or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement. 3.15.8 Evidence Required (a) Prior to execution of the Agreement, the Designer shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance. 3.15.9 Policy Provisions Required (a) Designer shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Designer shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Designer shall deliver renewal certificate(s) including the General 10.b Packet Pg. 418 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 18 Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. (b) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Designer’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss. (c) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Designer shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Designer shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement. (d) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Designer or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Designer hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. (e) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Designer from liability in excess of such coverage, nor shall it limit the Designer’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law. 3.15.10 Qualifying Insurers (a) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements: Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. 3.15.11 Additional Insurance Provisions (a) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Designer, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Designer pursuant to this Agreement, including but not limited to, the provisions concerning indemnification. (b) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems 10.b Packet Pg. 419 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 19 necessary and any premium paid by City will be promptly reimbursed by Designer or City will withhold amounts sufficient to pay premium from Designer payments. In the alternative, City may cancel this Agreement. (c) The City may require the Designer to provide complete copies of all insurance policies in effect for the duration of the Project. (d) Neither the City nor the City Council, nor any member of the City Council, nor any of the officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement. 3.15.12 Subconsultant Insurance Requirements (a) Designer shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this Section. Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Designer, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants. 3.16 Records. Designer shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Designer shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Designer shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of five (5) years from the date of final payment under this Agreement. 3.17 Standardized Manufactured Items. Designer shall cooperate and consult with City in the use and selection of manufactured items on the Project, including but not limited to, paint, hardware, plumbing, mechanical and electrical equipment, fixtures, roofing materials and floor coverings. All such manufactured items shall be standardized to City’s criteria to the extent such criteria do not interfere with building design. 3.18 Limitation of Agreement. This Agreement is limited to and includes only the work included in the Project described herein. Any additional or subsequent construction at the site of the Project, or at any other City site, will be covered by, and be the subject of, a separate Agreement for design services between City and the designer chosen therefor by City. 3.19 Mediation. Disputes arising from this Agreement may be submitted to mediation if mutually agreeable to the parties hereto. The type and process of mediation to be utilized shall be subject to the mutual agreement of the parties. 10.b Packet Pg. 420 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 20 3.20 Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each party to this Agreement. However, Designer shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void. 3.21 Asbestos Certification. Designer shall certify to City, in writing and under penalty of perjury, that to the best of its knowledge, information and belief no asbestos-containing material or other material deemed to be hazardous by the state or federal government was specified as a building material in any construction document that the Designer prepares for the Project. Designer shall require all consultants who prepare any other documents for the Project to submit the same written certification. Designer shall also assist the City in ensuring that contractors provide City with certification, in writing and under penalty of perjury, that to the best of their knowledge, information and belief no material furnished, installed or incorporated into the Project contains asbestos or any other material deemed to be hazardous by the state or federal government. These certifications shall be part of the final Project submittal. Designer shall include statements in its specifications that materials containing asbestos or any other material deemed to be hazardous by the state or federal government are not to be included. 3.22 No Third Party Rights. This Agreement shall not create any rights in, or inure to the benefits of, any third party except as expressly provided herein. 3.23 Governing Law. This Agreement shall be construed in accordance with, and governed by, the laws of the State of California. Venue shall be in San Bernardino County. 3.24 Exhibits and Recitals. All exhibits and recitals contained herein and attached hereto are material parts of this Agreement and are incorporated as if fully set forth. 3.25 Severability. Should any provision in the Agreement be held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall continue in full force and effect. 3.26 Non-Waiver. None of the provisions of this Agreement shall be considered waived by either party, unless such waiver is specifically specified in writing. 3.27 Safety. 10.b Packet Pg. 421 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 21 Designer shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Designer shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of its employees, consultant and subcontractors appropriate to the nature of the work and the conditions under which the work is to be performed. 3.28 Harassment Policy. Designer shall provide a copy of the City's Harassment Policy to each of its employees assigned to perform the tasks under this Agreement. Designer shall submit to the City's Personnel Manager a statement signed by each of its employees who are assigned to perform the Services under this Agreement certifying receipt of City's Harassment Policy and certifying that they have read the Harassment Policy. A finding by the City that any of Designer's employees has harassed a City employee shall be grounds for appropriate discipline, up to and including such employee's removal from performance of this Agreement at City's request. 3.29 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose: CITY: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, California 92401 Attn: City Manager With a Copy to: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: City Attorney DESIGNER: RHA Landscape Architects Planners, Inc. 6800 Indiana Avenue, Suite 245 Riverside, CA 92506 Attn: Greg Meek Principal Such notice shall be deemed made when personally delivered or when mailed, forty- eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 3.30 Time of Essence. Time is of the essence for each and every provision of this Agreement. 10.b Packet Pg. 422 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 22 3.31 City’s Right to Employ Other Consultants. City reserves right to employ other consultants, including designers, in connection with this Project or other projects. 3.32 Prohibited Interests. 3.32.1 Solicitation. Designer maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Designer, to solicit or secure this Agreement. Further, Designer warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Designer, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. 3.32.2 Conflict of Interest. For the term of this Agreement, no director, official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 3.33 Equal Opportunity Employment. Designer represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or any other classification protected by federal or state law. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Designer shall also comply with all relevant provisions of City’s minority business enterprise program, affirmative action plan or other related programs or guidelines currently in effect or hereinafter enacted. 3.34 Labor Certification. By its signature hereunder, Designer certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker’s Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 3.35 Subcontracting. As specified in this Agreement, Designer shall not subcontract any portion of the Services required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to each and every provision of this Agreement. 3.36 Supplemental Conditions. Any supplemental conditions shall be attached as an exhibit to this Agreement, and that exhibit shall be incorporated herein by reference. 10.b Packet Pg. 423 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 23 3.37 Entire Agreement. This Agreement, with its exhibits, contains the entire agreement of the parties hereto, and supersedes any and all other prior or contemporaneous negotiations, understandings and oral or written agreements between the parties hereto. Each party acknowledges that no representations, inducements, promises or agreements have been made by any person which is not incorporated herein, and that any other agreements shall be void. Furthermore, any modification of this Agreement shall only be effective if in writing signed by all parties hereto. [SIGNATURES ON FOLLOWING PAGE] 10.b Packet Pg. 424 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood 24 SIGNATURE PAGE FOR DESIGN SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND RHA LANDSCAPE ARCHITECTS PLANNERS, INC. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first written above. CITY OF SAN BERNARDINO APPROVED BY: Robert D. Field City Manager ATTESTED BY: Genoveva Rocha, CMC City Clerk APPROVED AS TO FORM: Sonia Carvalho City Attorney GREG MEEK, PRINCIPAL Signature Name Title 10.b Packet Pg. 425 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood Exhibit A-1 EXHIBIT A DESIGNER’S SCOPE OF SERVICES 1. GENERAL REQUIREMENTS. 1.1 Basic Services. Designer agrees to perform all the necessary professional design, engineering (e.g. mechanical, electrical, plumbing, structural, site engineering, and any other necessary engineering services mutually agreeable to the parties) and construction administration services for the Project in a timely and professional manner, consistent with the standards of the profession, including those provided for herein. 1.2 Exclusions from Basic Services. The following services shall be excluded from the basic services listed above: N/A 1.3 Additional Services. Designer shall perform the following Additional Services for the Project: N/A 1.4 Communication with City. Designer shall participate in consultations and conferences with authorized representatives of City and/or other local, regional, or state agencies concerned with the Project, which may be necessary for the completion of the Project or the development of the drawings, specifications and documents in accordance with the applicable standards and requirements of law and the City. Such consultations and conferences shall continue throughout the planning and construction of the Project and the contractor’s warranty period. Designer shall take direction only from the City’s Representative, or any other representative specifically designated by the City for this Project, including any construction manager hired by the City. 1.5 Coordination and Cooperation with Construction Manager. The City may hire a construction manager to administer and coordinate all or any part of the Project on its behalf. If the City does so, it shall provide a copy of its agreement with the construction manager so that the Designer will be fully aware of the duties and responsibilities of the construction manager. The Designer shall cooperate with the construction manager and respond to any requests or directives authorized by the City to be made or given by the construction manager. The Designer shall request clarification from the City in writing if the Designer should have any questions regarding the authority of the construction manager. 2. INITIAL PLANNING PHASE. During the initial planning phase of the Project, Designer shall do all of the following, as well as any incidental services thereto: 2.1 Project Feasibility. Provide advice and assistance to City in determining the feasibility of the Project, analysis of the type and quality of materials and construction to be selected, the site location, and other initial planning matters. 2.2 Meeting Budget and Project Goals. Designer shall notify City in writing of potential complications, cost overruns, unusual conditions, and general needs that potentially impact the Project budget and time line, including the City’s Preliminary Construction Budget. Designer shall use its best judgment in determining the balance between the size, type and 10.b Packet Pg. 426 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood Exhibit A-2 quality of construction to achieve a satisfactory solution within the Project’s budget and construction allowance. It shall be the duty of the Designer to design the Project within budget. As discussed herein, including in Section 7.3, if the lowest responsive and responsible bid for the Project exceeds the budget by the stated amount, Designer may be required to make the necessary changes in the drawing and specifications, at its sole cost and expense, to bring the bids within the required budget. 2.3 Permits, Approvals and Authorizations. As indicated in Section 3.5.4 of the Agreement, Designer shall assist City in securing easements, encroachment permits, rights of way, dedications, infrastructures and road improvements, as well as coordinating with utilities and adjacent property owners. 3. SCHEMATIC PLAN PHASE. During the schematic plan phase of the Project, Designer shall do all of the following, as well as any incidental services thereto: 3.1 Funding Documents. Designer shall provide a site plan and all other Project- related information necessary and required for an application by City to any federal, state, regional, or local agencies for funds to finance the construction Project. 3.2 Schematic Plans. In cooperation with City, Designer shall prepare preliminary plans and studies, schematic drawings, site utilization plans, and phasing plans showing the scale and relationship of the components of the Project, the plot plan development at the site, and the proposed design concept of the buildings (“Schematic Plans”). Designer shall incorporate the functional requirements of City into the Schematic Plans. The Schematic Plans shall meet all laws, rules and regulations of the State of California. The Schematic Plans shall show all rooms incorporated in each building of the Project in single-line drawings, and shall include all revisions required by City or by any federal, state, regional or local agency having jurisdiction over the Project. All design drawings for the Project shall be in a form suitable for reproduction. 3.3 Preliminary Project Budget. Designer shall use the City’s Preliminary Construction Budget and its own expertise and experience with the Project to establish a preliminary project budget or allowance in a format required by City (“Designer’s Preliminary Project Budget”). The purpose of the Designer’s Preliminary Project Budget is to show the probable Project cost in relation to City’s Preliminary Construction Budget and the construction standards of any applicable funding agency. If Designer perceives site considerations which render the Project expensive or cost prohibitive, Designer shall disclose such conditions in writing to City immediately. As discussed herein, including in Section 7.3, if the lowest responsive and responsible bid for the Project exceeds the budget by more than the stated amount, Designer may be required to make the necessary changes in the drawings and specifications, at its sole cost and expense, to bring the bids within the required budget Designer shall provide a preliminary written time schedule for the performance of all construction work on the Project. 3.4 Copies of Schematic Plans and Other Documents. Designer, at its own expense, shall provide a complete set of the Schematic Plans described herein for City’s review and approval. Additionally, at City’s expense, Designer shall provide such documents as may be required by any federal, state, regional or local agencies concerned with the Project. Any additional copies required by City shall be provided at actual cost to City. 10.b Packet Pg. 427 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood Exhibit A-3 4. DESIGN DEVELOPMENT PHASE. During the design development phase of the Project, Designer shall do all of the following, as well as any incidental services thereto: 4.1 Design Development Documents. Once City provides Designer with specific written approval of the Schematic Plans described herein, Designer shall prepare design development documents consisting of: (1) site and floor plans; (2) elevations; and (3) any other drawings and documents sufficient to fix and describe the types and makeup of materials, as well as the size and character of the Project’s structural, mechanical and electrical systems, and to outline the Project specifications (“Design Development Documents”). The Design Development Documents shall be prepared in sufficient form to present to the City Council for approval. 4.2 Copies of Design Development and Other Documents. Designer, at its own expense, shall provide a complete set of the Design Development Documents described herein for City’s review and approval. Additionally, at City’s expense, Designer shall provide such documents as may be required by any federal, state, regional or local agencies concerned with the Project. Any additional copies required by City shall be provided at actual cost to City. 4.3 Updated Project Budget. Designer shall use its Preliminary Project Budget and expertise and experience with the Project to establish an updated estimate of probable construction costs, containing detail consistent with the Design Development Documents as set forth herein and containing a breakdown based on types of materials and specifications identified herein (“Designer’s Updated Project Budget”). 4.4 Timetable. Designer shall provide a written timetable for full and adequate completion of the Project to City. 4.5 Application for Approvals. Designer shall assist City in applying for and obtaining required approvals from all federal, state, regional or local agencies concerned with the Project. Designer shall furnish and process all design and engineering information required to prepare and process applications to applicable utilities in order to secure priorities and materials, to aid in the construction of the Project and to obtain final Project approval and acceptance by any of the above agencies as may be required. 4.6 Color and Other Aesthetic Issues. Designer shall provide, for City’s review and approval, a preliminary schedule of all color materials and selections of textures, finishes and other matters involving an aesthetic decision about the Project. 5. FINAL WORKING DRAWINGS AND SPECIFICATIONS. During the final working drawings and specifications phase of the Project, Designer shall do all of the following, as well as any incidental services thereto: 5.1 Final Working Drawings and Specifications. Once City provides Designer with specific written approval of the Design Development Documents described herein, Designer shall prepare such complete working drawings and specifications as are necessary for developing complete bids and for properly executing the Project work in an efficient and thorough manner (“Final Working Drawings and Specifications”). Such Final Working Drawings and Specifications shall be developed from the Schematic Plans and Design Development 10.b Packet Pg. 428 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood Exhibit A-4 Documents approved by City. The Final Working Drawings and Specifications shall set forth in detail all of the following: (1) the Project construction work to be done; (2) the materials, workmanship, finishes, and equipment required for the architectural, structural, mechanical, and electrical systems; and (3) the utility service connection equipment and site work. As indicated in Section 3.9.2 of the Agreement, City may be requested to supply Designer with the necessary information to determine the proper location of all improvements on and off site, including record drawings (“as-built drawings”) in City’s possession. Designer will make a good-faith effort to verify the accuracy of such information by means of a thorough interior and exterior visual survey of site conditions. City shall also make a good-faith effort to verify the accuracy of the as-built drawings and provide any supplemental information to Designer which may not be shown on the as-built drawings. 5.2 Form. The Final Working Drawings and Specifications must be in such form as will enable Designer and City to secure the required permits and approvals from all federal, state, regional or local agencies concerned with the Project. In addition, the Final Working Drawings and Specifications must be in such form as will enable City to obtain, by competitive bidding, a responsible and responsive bid within the applicable budgetary limitations and cost standards. The Final Working Drawings and Specifications shall be clear and legible so that uniform copies may be on standard architectural size paper, properly indexed and numbered, and shall be capable of being clearly copied and assembled in a professional manner by Designer. 5.3 Approval and Revisions. City shall review, study, and check the Final Working Drawings and Specifications presented to it by Designer, and request any necessary revisions or obtain any necessary approvals by the City Council, subject to the approval of all federal, state, regional or local agencies concerned with the Project. Designer shall make all City- requested changes, additions, deletions, and corrections in the Final Working Drawings and Specifications at no additional cost, so long as they are not in conflict with the requirements of public agencies having jurisdiction or prior approval, or inconsistent with earlier City direction or Designer’s professional judgment. Designer shall bring any such conflicts and/or inconsistencies to the attention of City. The parties agree that Designer, and not the City, possesses the requisite expertise to determine the constructability of the Final Working Drawings and Specifications. However, the City reserves the right to conduct one or more constructability review processes with the Final Working Drawings and Specifications, and to hire an independent designer or other consultant to perform such reviews. Any such independent constructability review shall be at City’s expense. Designer shall make all City- requested changes, additions, deletions, and corrections in the Final Working Drawings and Specifications which may result from any constructability review, at no additional cost to the City, so long as they are not in conflict with the requirements of public agencies having jurisdiction or prior approval, or inconsistent with earlier City direction or Designer’s professional judgment. If such changes, additions, deletions or corrections are inconsistent with prior City direction, Designer shall make such alterations and be compensated therefore pursuant to the Additional Services provision of this Agreement. 5.4 Costs of Construction. It is understood by Designer that should the Final Working Drawings and Specifications be ordered by City, City shall specify the sum of money set aside to cover the total cost of construction of the work, exclusive of Designer’s fees. Should it become evident that the total construction cost will exceed the specified sum, Designer shall at once present a statement in writing to the City’s Representative setting forth this fact and giving a full statement of the cost estimates on which the conclusion is based. 10.b Packet Pg. 429 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood Exhibit A-5 5.5 Copies of Final Working Drawings and Specifications and Other Documents. Designer, at its own expense, shall provide a complete set of the Final Working Drawings and Specifications described herein for City’s review and approval. Additionally, at City’s expense, Designer shall provide such documents as may be required by any federal, state, regional or local agencies concerned with the Project. Any additional copies required by City shall be provided at actual cost to City. 6. CONSTRUCTION CONTRACT DOCUMENTS. During the construction contract documents phase of the Project, Designer shall do all of the following, as well as any incidental services thereto: 6.1 Bid and Contract Documents. If so required by City, Designer shall assist City in the completion of all bid and construction documents, including but not limited to, the Notice Inviting Bids, Instructions to Bidders, Contract Bid Forms (including Alternate Bids as r equested by City), Contract, General Conditions, Supplementary General Conditions, Special Conditions, DVBE and other applicable affirmative action documents, Performance Bond, Payment Bond, Escrow Agreement for Security Deposits, and any other certifications and documents required by federal, state and local laws, rules and regulations which may be reasonably required in order to obtain bids responsive to the specifications and drawings. All such documents shall be subject to the approval of City and City’s legal counsel. 6.2 Final Estimate. At the time of delivery of these bid and construction documents, which shall include the Final Working Drawings and Specifications (collectively referred to herein as the “Construction Documents”), Designer shall provide City with its final estimate of probable construction cost (“Designer’s Final Estimate”). As discussed herein, including in Section 7.3, it shall be the Designer’s duty to design the Project within budget. 7. BID PHASE. During the bid phase of the Project, Designer shall do all of the following, as well as any incidental services thereto: 7.1 Reproducible Construction Documents. Once City provides Designer with specific written approval of the Construction Documents and Designer’s Final Estimate, Designer shall provide to City one set of reproducible Construction Documents. 7.2 Distribution of Contract Documents and Review of Bids. Designer shall assist City in distributing the Construction Documents to bidders and conducting the opening and review of bids for the Project. 7.3 Over Budget. If the apparent lowest responsive and responsible bid on the Project exceeds the Designer’s Final Estimate by more than five percent (5%), City may request Designer to amend, at Designer’s sole cost and expense, the Final Drawings and Specifications in order to rebid the Project and receive a lowest responsive and responsible bid equal to or less than the Designer’s Final Estimate. All revisions necessary to bring the lowest responsible and responsive bid within the Designer’s Final Estimate, including any omissions, deferrals or alternates, shall be made in consultation with, and subject to the approval of, the City. 10.b Packet Pg. 430 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood Exhibit A-6 8. CONSTRUCTION PHASE. During the construction phase of the Project, Designer shall do all of the following, as well as any incidental services thereto: 8.1 Observation. The Project Designer shall observe work executed from the Final Working Drawings and Specifications in person, provided that City may, in its discretion, consent to such observation by another competent representative of Designer. 8.2 General Administration. Designer shall provide general administration of the Construction Documents and the work performed by the contractors. 8.3 Pre-Construction Meeting. Designer shall conduct one or more pre- construction meetings, as the City determines is needed for the Project, with all interested parties. 8.4 Site Visits of Contractor’s Work. Designer shall conduct site visits to observe each contractors’ work for general conformance with the Construction Documents and with any approved construction schedules or milestones. Such site visits shall be conducted as often as are necessary and appropriate to the stage of construction, according to the City’s sole discretion, but in no event less than weekly. 8.5 Site Visits of Inspector’s Work. Designer shall conduct site visits to communicate and observe the activities of the City inspectors. Such site visits shall be conducted as often as is mutually acceptable to Designer and City. Designer shall direct the City inspectors and the Project contractors to coordinate the preparation of record drawings indicating dimensions and location of all “as-built” conditions, including but not limited to, underground utility lines. 8.6 Coordination of Designer’s Consultants. Designer shall cause all architects, engineers and other consultants, as may be hired by Designer or City, to observe the work completed under their disciplines as required, and approve and review all test results for general conformance with the Construction Documents. 8.7 Reports. Designer shall make regular reports as may be required by applicable federal, state or local laws, rules or regulations, as well as the federal, state, regional or local agencies concerned with the Project. 8.8 Construction Meetings; Minutes. Designer shall attend all construction meetings and provide written reports/minutes to the City after each construction meeting in order to keep City informed of the progress of the work. Such meetings shall occur at a frequency necessary for the progress of the Project work, according to the City’s sole discretion, but no less than weekly. 8.9 Written Reports. Designer shall make written reports to City as necessary to inform City of problems arising during construction, changes contemplated as a result of each such problems, and progress of the Project work. 8.10 Written Records. Designer shall keep accurate written records of the progress and quality of the Project work and the time schedules, and shall advise the contractors and City of any deviations from the time schedule which could delay timely completion of the Project. 10.b Packet Pg. 431 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood Exhibit A-7 8.11 Material and Test Reports. Designer shall check and process, in a timely manner, all required material and test reports for the Project work. In addition, Designer shall provide notice of any deficiencies in material or work reflected in such reports, as well as its recommendation for correction of such deficiencies, to the contractors and City. 8.12 Review and Response to Submissions. Designer shall review and respond, in a timely manner, to all schedules, submittals, shop drawings, samples, information requests, change requests, and other submissions of the contractor and subcontractors for compliance with, or alterations and additions to, the Construction Documents. Designer’s review and response shall be done in such a manner so as to ensure the timely and uninterrupted progress of the Project work. 8.13 Rejection of Work. Designer shall promptly reject, as discussed with City, work or materials which do not conform to the Construction Documents. Designer shall immediately notify the City and contractor(s) of such rejections. Designer shall also have the authority to recommend to the City that additional inspection or testing of the work be performed, whether or not such work is fabricated, installed or completed. 8.14 Substitutions. Designer shall consult with City, in a timely manner, with regard to substitution of materials, equipment and laboratory reports thereof, prior to the City’s final written approval of such substitutions. Designer’s consultation shall be done in such a manner so as to ensure the timely and uninterrupted progress of the Project work. 8.15 Revised Documents and Drawings. Designer shall prepare, at no additional expense to City, all documents and/or drawings made necessary by errors and omissions in the originally approved Construction Documents. 8.16 Change Requests and Material Changes. Designer shall evaluate and advise City, in a timely manner and in writing, of any change requests and material change(s) which may be requested or necessary in the Project plans and specifications. Designer shall provide the City with its opinion as to whether such change requests should be approved, denied or revised. If the City has not hired a construction manager or other person to do so, the Designer shall prepare and execute all change orders and submit them to the City for authorization. If the City has designated a construction manager or other person to prepare all change orders, the Designer shall review all change orders prepared by such person, execute them and deliver them to the City for authorization if they meet with the Designer’s approval, or submit them to the City with recommendations for revision or denial if necessary. Designer shall not order contractors to make any changes affecting the contract price without approval by City of such a written change order, pursuant to the terms of the Construction Documents. Designer may order, on its own responsibility and pending City Council approval, changes necessary to meet construction emergencies, if written approval of City’s Representative is first secured. 8.17 Applications for Payment. Designer shall examine, verify and approve contractor’s applications for payment, and shall issue certificates for payment in amounts approved by the City’s inspector. 8.18 Final Color and Product Selection. Designer shall coordinate final color and product selection with City’s original design concept. 8.19 Substantial Completion. Designer shall determine the date of substantial completion, in consultation with the City. 10.b Packet Pg. 432 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood Exhibit A-8 8.20 Punch List. After determining that the Project is substantially complete, Designer shall participate in the inspection of the Project and shall review all remaining deficiencies and minor items needed to be corrected or completed on the Project, including those identified on the punch list prepared by the contractor (“Punch List Items”). Designer shall notify contractor in writing that all Punch List Items must be corrected prior to final acceptance of the Project and final payment. Designer shall also notify City of all Punch List Items. 8.21 Warranties. Designer shall review materials assembled by the contractor and subcontractors with regard to all written warranties, guarantees, owners’ manuals, instruction books, diagrams, record “as built” drawings, and any other materials required from the contractors and subcontractors pursuant to the Construction Documents. Designer shall coordinate and provide these materials to the City. 8.22 Certificate of Completion. Designer shall participate in any further inspections of the Project necessary to issue Designer’s Certificate of Completion and final certificate for payment. 8.23 Documents for Project Close-Out. Designer shall cause all other architects, engineers and other consultants, as may be hired by Designer, to file any and all required documentation with the City or other governmental authorities necessary to close out the Project. Designer shall assist the City in obtaining such documentation from all other architects, engineers, or other consultants. 9. AS -BUILT DRAWINGS. During the as-built drawings phase of the Project, Designer shall do all of the following, as well as any incidental services thereto: 9.1 As -Built Drawings and Specifications. Not later than thirty (30) days after substantial completion of the Project, before receipt of final payment, Designer shall review and forward the Final Working Drawings and Specifications, indicating on them all changes made by change orders or otherwise pursuant to the Construction Documents, as well as all informatio n called for on the specifications, thus producing an “as-built” set of Final Working Drawings and Specifications (“As-Built Drawings and Specifications”). The As-Built Drawings and Specifications shall show, among other things, the location of all concealed pipe, buried conduit runs and other similar elements within the completed Project. Designer shall personally review and certify that the As-Built Drawings and Specifications are a correct representation of the information supplied to Designer by any inspectors and the contractor, and shall obtain certifications from any inspectors and the contractor that the drawings are correct. 9.2 Approval. Once City provides Designer with specific written approval of the As- Built Drawings and Specifications, Designer shall forward to City the complete set of original As- Built Drawings and Specifications or a complete set of reproducible duplicate As-Built Drawings and Specifications. The tracing shall be of such quality that clear and legible prints may be made without appreciable and objectionable loss of detail. 9.3 Documents for Final Payment. Prior to the receipt of Designer’s final payment, Designer shall forward to City all of the following: (1) one clear and legible set of reproductions of the computations; (2) the original copy of the specifications; (3) the As-Built Drawings and Specifications as required herein; and (4) Designer’s Certificate of Completion. 10.b Packet Pg. 433 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood Exhibit A-9 10. WARRANTY PERIOD. During the warranty period phase of the Project, Designer shall do all of the following, as well as any incidental services thereto: 10.1 Advice. Designer shall provide advice to City on apparent deficiencies in the Project during any applicable warranty periods for the Project. 10.b Packet Pg. 434 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood Exhibit B-1 EXHIBIT B FEE AND PHASING/FUNDING SCHEDULES 1. FEE SCHEDULE. Designer will invoice City on a monthly cycle based on the following fee schedule. Designer will include with each invoice a detailed progress report that indicates the amount of budget spent on each phase and the total amount spent against the Total Compensation. Designer will inform City regarding any out-of-scope work being performed by Designer for which Designer intends to seek compensation from City. 2. PHASING/FUNDING SCHEDULE. Progress payments towards Total Compensation shall never exceed the following percentages of Total Compensation as of the phase indicated: Initial Planning Phase: ________ percent (%____) Schematic Plan Phase: ________ percent (%____) Design Development Phase: ________ percent (%____) Final Working Drawings & Specifications Phase: ________ percent (%____) Construction Contract Documents Phase: ________ percent (%____) Bid Phase: ________ percent (%____) Construction Phase: ________ percent (%____) As-Built Drawings Phase: ________ percent (%____) Warranty Period Phase: ________ percent (%____) 10.b Packet Pg. 435 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood Exhibit C-1 EXHIBIT C COMPENSATION RATES AND REIMBURSABLE EXPENSES 1. HOURLY COMPENSATION RATES. Senior Principal $210.00 per hour Principal Landscape Architect $190.00 per hour Associate Landscape Architect $140.00 per hour Landscape Architect/ Project Manager $125.00 per hour Landscape Designer $100.00 per hour Administrative Personnel $ 80.00 per hour Clerical/ Professional Staff $ 70.00 per hour 2. REIMBURSABLE EXPENSES. Reimbursable items such as the cost of blueprinting, graphic reproduction, and plotting will be billed at our direct cost plus 15%. Auto travel will be charged at $0.585 per mile. Where we are able to utilize direct billing to Owner established accounts the “plus 15%” is not applicable. 3. ADDITIONAL SERVICES. Additional Services shall be computed at the actual hourly rates listed above. 4. ADDITIONAL CONSULTANTS. If City requires Designer to hire consultants to perform any Additional Services, Designer shall be compensated therefore at the Designer’s actual hourly rates plus 0%. Owner shall have the authority to review and approve the rates of any such consultants. 10.b Packet Pg. 436 Attachment: Attachment 2 - Resolution 2021-37-Exhibit A-Agreement with RHA (7013 : Design Services Agreement for Nicholson Neighborhood APPENDIX A PROJECT LOCATION MAP NICHOLSON NEIGHBORHOOD PARK 2737 West 2nd Street 10.c Packet Pg. 437 Attachment: Attachment 3 - Location Map-Nicholson Park (7013 : Design Services Agreement for Nicholson Neighborhood Park Improvements Page 1 Staff Report City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Kris Jensen, Director of Public Works Subject: Third Amendment to Lease Agreement with Vanir Tower Building, Inc. (Ward 1) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution 2021-33 authorizing the City Manager to execute Amendment No. 3 to the Lease Agreement with Vanir Tower Building, Inc., for 290 North D Street, San Bernardino, California, increasing rental space to include Suite 803, and extending the Lease Agreement through June 30, 2024. Background On November 21, 2016, the Mayor and City Council approved Resolution 2016-240 directing the City Manager to execute a Lease Agreement for office space at Vanir Tower, Inc. (290 North D Street, San Bernardino, California - APN 0134-311-42-0000) to house City staff. The agreement was amended on March 6, 2017 by Resolution 2017-039, resetting the lease period to commence on April 15, 2017 for a two year period with the option of two six-month extension periods. On April 3, 2019 , the Mayor and City Council authorized the City Manager to exercise both of the six-month extension options, extending the Lease Agreement term through April 15, 2020. On July 1, 2020, the Mayor and City Council approved the Second Amendment to the Lease Agreement, eliminating City use of space on the 8 th floor of the Vanir Tower, and extending the Lease Agreement term through June 30, 2021. This extension was intended to allow staff time to continue to evaluate the City’s office space needs and present the Mayor and City Council with a longer term option prior to the expirat ion of the extended lease term. Discussion As of August 1, 2020 the Office of the Mayor and the City Council offices were relocated and consolidated into City occupied space on the 3 rd floor of the Vanir Tower. Staff has continued to evaluate the City’s spacing needs and determined that shared space on the 3rd floor has created challenges for daily operations. The City’s existing space allocation does not provide sufficient space to accommodate any additional personnel to be working in City facilities including full-time and part-time staff, elected officials and volunteers or interns. Additionally, there is a need to establish a confidential 11 Packet Pg. 438 7144 Page 2 environment for performance of Human Resources functions and a need to ensure shared spaces meet ongoing social distancing guidelines into the future. Staff met with the representative of Vanir Tower Building, Inc., to discuss additional space availability options and to negotiate a lease term beyond June 30, 2021. The Vanir Tower has offered the City the opportunit y to re-occupy 5,428 square feet of available space on the 8th floor in Suite 803 (former City Council Offices). This area would provide the additional space needed to allow the relocation of the Human Resources function to the 8th floor, creating a separate area that provides for confidentiality of services and opening space on the 3 rd floor to accommodate additional personnel and provide dedicated office space for the members of the City Council. Staff has negotiated terms with the Vanir property owner regarding this space. If approved by the Mayor and City Council, the proposed Amendment No. 3 (“Third Amendment”) to the Lease Agreement will become effective upon execution by the parties and will incorporate the following changes: 1. Reduction in rental rate from $1.95 to $1.88 per square foot per month for all leased space 2. Increase to 22,100 total square feet occupied through June 30, 2024 (addition of 8th Floor Suite 803 square footage) 3. Extension of the Lease Agreement Term through June 30, 2024 4. A 3% increase in per square foot rental effective July 1, 2022 and July 1, 2023 All other terms of the Lease Agreement will remain the same. The estimated cost to relocate the Human Resources Department to the 8th floor and relocate other offices within the 3rd floor is $15,000. This amount does not include any tenant improvement or remodeling work for the 3rd or 8th floor areas, and does not include the purchase of additional office furniture. 2020-2025 Key Strategic Targets and Goals Approval of the proposed amendment aligns with Key Target No. 1c: Financial Stability: create a framework for spending decisions and No. 1e: create an asset management plan. Extending the lease through June 30, 2024, provides stability related to the lease for budgeting purposes through FY 2023/24. The lease extension also provides the City staff the time necessary to work with the Mayor and City Council to comprehensively evaluate options for a permanent City Hall facility prior to the end of the lease extension. Fiscal Impact The proposed lease extension will result in an overall FY 2020/21 General Fund impact of approximately $51,300 including lease payment increases in a net amount of $36,300 for additional 8th floor square footage and $15,000 to support moving costs. Budgets for the lease payment and associated moving costs have been incorporated into the proposed FY 2020/21 Mid-year Budget Report. Payment of the first month's rent will be prorated based on the effective date of the agreement. 11 Packet Pg. 439 7144 Page 3 Pending Mayor and City Council approval of the FY 2020/21 Mid-Year Budget Report, no additional General Fund appropriation is anticipated as a result of this lease extension. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution 2021-33 authorizing the City Manager to execute Amendment No. 3 to the Lease Agreement with Vanir Tower Building, Inc., for 290 North D Street, San Bernardino, California, increasing rental space to include Suite 803, and extending the Lease Agreement through June 30, 2024. Attachments Attachment 1 Resolution No. 2021-33 Attachment 2 Resolution No. 2021-33 - Exhibit “A” - Amendment No. 3 to Lease Agreement with Vanir Tower Building, Inc. Attachment 3 Resolution No. 2016-240 - Original Lease Agreement Attachment 4 Resolution No. 2017-039 - Amendment No. 1 to Lease Agreement Attachment 5 Resolution No. 2020-157 - Amendment No. 2 to Lease Agreement Ward: 1 Synopsis of Previous Council Actions: November 21, 2016 Resolution 2016-240 of the Mayor and City Council of the City of San Bernardino was adopted, authorizing the City Manager to execute a Lease Agreement between the City of San Bernardino and Vanir Tower Building Incorporated for the Lease of Office Space. March 6, 2017 Resolution No. 2017-039 of the Mayor and City Council of the City of San Bernardino was adopted, directing the City Manager to execute the Amendment Number One to the Lease with Vanir Tower Inc. April 3, 2019 The Mayor and City Council authorized the City M anager to execute two, six month lease extensions to the lease agreement between Vanir Tower Building, Inc., and the City of San Bernardino extending the Lease agreement through April 15, 2020. May 20, 2020 The Mayor and City Council directed staff to explore additional lease options for extending the Vanir Tower lease. June 17, 2020 The Mayor and City Council provided direction to staff to secure a 12 month lease extension with Vanir Tower and reduce rentable space during the term of the lease. July 1, 2020 Resolution No. 2020-105 of the Mayor and City Council of the City 11 Packet Pg. 440 7144 Page 4 of San Bernardino was adopted, directing the City Manager to execute the Amendment Number Two to the Lease with Vanir Tower Inc., extending the Lease Agreement through June 30, 2021. 11 Packet Pg. 441 RESOLUTION NO. 2021-33 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 3 ("THIRD AMENDMENT") TO THE LEASE AGREEMENT WITH VANIR TOWER BUILDING, INC., AT 290 NORTH D STREET, SAN BERNARDINO, CALIFORNIA, EXTENDING THE LEASE AGREEMENT THROUGH JUNE 30, 2024 WHEREAS, the City and Vanir Tower Building, Inc. entered into a lease agreement for the lease of office space at the Vanir Tower property located at 290 North “D” Street on February 8, 2017; and WHEREAS, the parties amended the lease on March 6, 2017 and the City subsequently exercised two six-month extension options available to it under the Lease Agreement, and on July 1, 2020 further extended the lease term and reduced space occupied as amended; and WHEREAS, the City’s current lease agreement term, including all term extensions, expires on June 30, 2021; and WHEREAS, the City now wishes to extend the term of the lease agreement through June 30, 2024 and increase the area of space leased. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager is hereby authorized to execute Amendment No. 3 (“Third Amendment”) to the Lease Agreement between the City of San Bernardino and Vanir Tower Building, Inc., attached hereto as Exhibit “A” and incorporated herein. SECTION 3. The City Manager is hereby authorized to execute any other such documents as may be necessary to effectuate the intention of this Resolution. SECTION 4. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is no t subject to CEQA. 11.a Packet Pg. 442 Attachment: Attachment 1 - Resolution No. 2021-33 (7144 : Third Amendment to Lease Agreement with Vanir Tower Building, Inc. (Ward 1)) Resolution No. 2021-33 SECTION 5. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 6. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 11.a Packet Pg. 443 Attachment: Attachment 1 - Resolution No. 2021-33 (7144 : Third Amendment to Lease Agreement with Vanir Tower Building, Inc. (Ward 1)) Resolution No. 2021-33 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-33, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 11.a Packet Pg. 444 Attachment: Attachment 1 - Resolution No. 2021-33 (7144 : Third Amendment to Lease Agreement with Vanir Tower Building, Inc. (Ward 1)) 11.b Packet Pg. 445 Attachment: Attachment 2 - Resolution No. 2021-33; Exhibit "A" - Amendment No. 3 to Lease Agreement with Vanir Tower Building, Inc. 11.b Packet Pg. 446 Attachment: Attachment 2 - Resolution No. 2021-33; Exhibit "A" - Amendment No. 3 to Lease Agreement with Vanir Tower Building, Inc. 11.b Packet Pg. 447 Attachment: Attachment 2 - Resolution No. 2021-33; Exhibit "A" - Amendment No. 3 to Lease Agreement with Vanir Tower Building, Inc. 11.b Packet Pg. 448 Attachment: Attachment 2 - Resolution No. 2021-33; Exhibit "A" - Amendment No. 3 to Lease Agreement with Vanir Tower Building, Inc. 11.c Packet Pg. 449 Attachment: Attachment 3 - Resolution No. 2016-240 - Original Lease Agreement (7144 : Third Amendment to Lease Agreement with Vanir 11.c Packet Pg. 450 Attachment: Attachment 3 - Resolution No. 2016-240 - Original Lease Agreement (7144 : Third Amendment to Lease Agreement with Vanir 11.c Packet Pg. 451 Attachment: Attachment 3 - Resolution No. 2016-240 - Original Lease Agreement (7144 : Third Amendment to Lease Agreement with Vanir 11.c Packet Pg. 452 Attachment: Attachment 3 - 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Resolution No. 2016-240 - Original Lease Agreement (7144 : Third Amendment to Lease Agreement with Vanir 11.c Packet Pg. 502 Attachment: Attachment 3 - Resolution No. 2016-240 - Original Lease Agreement (7144 : Third Amendment to Lease Agreement with Vanir 11.c Packet Pg. 503 Attachment: Attachment 3 - Resolution No. 2016-240 - Original Lease Agreement (7144 : Third Amendment to Lease Agreement with Vanir 11.c Packet Pg. 504 Attachment: Attachment 3 - Resolution No. 2016-240 - Original Lease Agreement (7144 : Third Amendment to Lease Agreement with Vanir 11.c Packet Pg. 505 Attachment: Attachment 3 - Resolution No. 2016-240 - Original Lease Agreement (7144 : Third Amendment to Lease Agreement with Vanir 11.d Packet Pg. 506 Attachment: Attachment 4 - Resolution No. 2017-039 - Amendment No. 1 to Lease Agreement (7144 : Third Amendment to Lease Agreement 11.d Packet Pg. 507 Attachment: Attachment 4 - Resolution No. 2017-039 - Amendment No. 1 to Lease Agreement (7144 : Third Amendment to Lease Agreement 11.d Packet Pg. 508 Attachment: Attachment 4 - 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Resolution No. 2017-039 - Amendment No. 1 to Lease Agreement (7144 : Third Amendment to Lease Agreement 11.d Packet Pg. 516 Attachment: Attachment 4 - Resolution No. 2017-039 - Amendment No. 1 to Lease Agreement (7144 : Third Amendment to Lease Agreement 11.d Packet Pg. 517 Attachment: Attachment 4 - Resolution No. 2017-039 - Amendment No. 1 to Lease Agreement (7144 : Third Amendment to Lease Agreement 11.d Packet Pg. 518 Attachment: Attachment 4 - Resolution No. 2017-039 - Amendment No. 1 to Lease Agreement (7144 : Third Amendment to Lease Agreement 11.d Packet Pg. 519 Attachment: Attachment 4 - Resolution No. 2017-039 - Amendment No. 1 to Lease Agreement (7144 : Third Amendment to Lease Agreement 11.d Packet Pg. 520 Attachment: Attachment 4 - Resolution No. 2017-039 - Amendment No. 1 to Lease Agreement (7144 : Third Amendment to Lease Agreement 11.d Packet Pg. 521 Attachment: Attachment 4 - Resolution No. 2017-039 - Amendment No. 1 to Lease Agreement (7144 : Third Amendment to Lease Agreement 11.d Packet Pg. 522 Attachment: Attachment 4 - Resolution No. 2017-039 - Amendment No. 1 to Lease Agreement (7144 : Third Amendment to Lease Agreement 11.d Packet Pg. 523 Attachment: Attachment 4 - Resolution No. 2017-039 - Amendment No. 1 to Lease Agreement (7144 : Third Amendment to Lease Agreement 11.d Packet Pg. 524 Attachment: Attachment 4 - Resolution No. 2017-039 - Amendment No. 1 to Lease Agreement (7144 : Third Amendment to Lease Agreement 11.d Packet Pg. 525 Attachment: Attachment 4 - Resolution No. 2017-039 - Amendment No. 1 to Lease Agreement (7144 : Third Amendment to Lease Agreement 11.d Packet Pg. 526 Attachment: Attachment 4 - Resolution No. 2017-039 - Amendment No. 1 to Lease Agreement (7144 : Third Amendment to Lease Agreement 11.d Packet Pg. 527 Attachment: Attachment 4 - Resolution No. 2017-039 - Amendment No. 1 to Lease Agreement (7144 : Third Amendment to Lease Agreement 11.d Packet Pg. 528 Attachment: Attachment 4 - Resolution No. 2017-039 - Amendment No. 1 to Lease Agreement (7144 : Third Amendment to Lease Agreement 11.e Packet Pg. 529 Attachment: Attachment 5 - Resolution No. 2020-157 - Amendment No. 2 to Lease Agreement (7144 : Third Amendment to Lease Agreement 11.e Packet Pg. 530 Attachment: Attachment 5 - Resolution No. 2020-157 - Amendment No. 2 to Lease Agreement (7144 : Third Amendment to Lease Agreement 11.e Packet Pg. 531 Attachment: Attachment 5 - Resolution No. 2020-157 - Amendment No. 2 to Lease Agreement (7144 : Third Amendment to Lease Agreement 11.e Packet Pg. 532 Attachment: Attachment 5 - Resolution No. 2020-157 - Amendment No. 2 to Lease Agreement (7144 : Third Amendment to Lease Agreement 11.e Packet Pg. 533 Attachment: Attachment 5 - Resolution No. 2020-157 - Amendment No. 2 to Lease Agreement (7144 : Third Amendment to Lease Agreement Page 1 Public Hearing City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Barbara Whitehorn, Director of Finance Subject: Community Facilities District No. 2018-1 (Safety Services) Annexation No. 3 (Ward 3) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; 2. Adopt Resolution No. 2021-38 Resolution of the Mayor and City Council of the City of San Bernardino, California, acting as the legislative body of the City of San Bernardino Community Facilities District No. 2018-1 (Safety Services), and calling elections therein; 3. Hold a special landowner election and canvass the election; and 4. Adopt Resolution No. 2021-39 Resolution of the Mayor and City Council of the City of San Bernardino, California, acting as the legislative body of the City of San Bernardino Community Facilities District No. 2018-1 (Safety Services) certifying the results of the March 3, 2021 annexation and special tax election. Background On January 20, 2021, the City Council adopted Resolution No. 2021 -6, a Resolution of Intention to annex territory into Community Facilities District No. 2018-1 (Safety Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”. A public hearing was set for March 3, 2021 on the proposed annexation of the said t erritory into the community facilities district. As required by the Resolution of Intention, a boundary map was recorded on February 3, 2021, at 10:54 a.m. in Book 89 Page 50, Document No. 2021-0053174 of Maps of Assessment and Community Facilities Districts with the San Bernardino County Recorder. The Resolution of Intention was adopted by the City Council in response to a petition filed by the property owner of approximately 9.66 gross acres of vacant residential property within the City, to include 96 detached single family residences upon buildout, 12 Packet Pg. 534 7119 Page 2 requesting that the City assist them in annexing their properties into CFD No. 2018 -1 under the Mello-Roos Act. The State legislature enacted the Mello-Roos Act in 1982 to assist public agencies in financing certain public improvements by either issuing tax exempt securities that are repaid by annual levy of special taxes, or to provide for the financing of on-going public services. The landowner requested the City annex into CFD No. 2018-1 to levy a special tax to cover the costs associated with financing public safety costs. The public services to be financed within the territory to be annexed to the District are the following: 1. Police protection services (including but not limited to criminal justice services) and paramedic services; and 2. City and County costs associated with the setting, levying and collection of the special tax, and in the administration of the District including the contract administration and operating reserves. The proposed total maximum tax rate is $385 per residential unit for FY 2021/22. The maximum annual tax rate is proposed to escalate each year after July 1, 2024 by four percent (4.0%). The property owners have agreed to initiate and conduct the CFD annexation proceedings pursuant to the Mello-Roos Act of 1982. The property owners have submitted a “Consent and Waiver” form on file in the City Clerk’s Office to initiate and conduct proceedings pursuant to the Mello-Roos Act in 1982, for the annexation into the CFD and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election. In order to annex property to CFD No. 2018 -1 pursuant to the provisions of California Government Code Section 53311 et seq., the City must adopt three statutorily required Resolutions are summarized below. Resolution declaring City intent to annex territory to Community Facilities District No. 2018-1 including the boundary of the area to be annexed and the rate and method of apportionment of special taxes within the annexation area (the special tax applies only to properties within the annexation area), adopted January 20, 2021. Resolution calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to the District. Resolution declaring the results of the election and directing the recording of the notice of special tax lien. Discussion The Resolution of Intention called for a public hearing to be held on March 3, 2021 on the issue of the annexation of territory into CFD No. 2018-1. Under the Mello-Roos Act, the City Council must hold the public hearing and consider any protests against the formation of the CFD. If the owners of one half or more of the land within the proposed 12 Packet Pg. 535 7119 Page 3 boundaries of the CFD file written protests against the establishment of the CFD, the Council may not create the CFD. If a majority protest is not filed, the City Council may adopt the resolution establishing the CFD. Adoption of Resolution No. 2018-264 on September 19, 2018 established CFD 2018-1, pursuant to the requirements of Government Code Section 53325.1. After a CFD is formed, the Mello-Roos Act requires that for any annexations into the CFD an election be held on the question of whether the proposed special taxes should be levied. The election requires a two-thirds vote in favor of levying the special tax. The landowners filed waivers with respect to the conduct of the election pursuant to Government Code Sections 53326(a) and 53327(b), meaning that the time limits and procedural requirements for conducting an election under the Mello -Roos Act do not have to be followed. Accordingly, City staff has already mailed the election ba llots to the landowners and required the ballots to be returned by the close of the public hearing . If the Mayor and City Council adopt Resolution No. 2021 -38, it may immediately proceed to the opening of the ballots and adopt Resolution No. 2021 -39 declaring the results of the election. 2020-2025 Key Strategic Targets and Goals This project is consistent with Goal No 4: Ensure Development of a Well-Planned Balanced and Sustainable City. This project will contribute to ensure that the City is clean and attractive and provide infrastructure designed for long term economic growth. Fiscal Impact There is no fiscal impact to the General Fund at this time. The individual property owners in the CFD will be responsible for annual payments of special taxes. Upo n full completion of the development, it is estimated that there will be an annual collection of special tax revenues of approximately $36,960 to be used to pay for safety services. The Maximum Special Tax rate is proposed to escalate each year after July 1, 2024 by four percent (4.0%). All costs associated with annexation into the CFD have been borne by the Developer. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; 2. Adopt Resolution No. 2021-38 Resolution of the Mayor and City Council of the City of San Bernardino, California, acting as the legislative body of the City of San Bernardino Community Facilities District No. 2018-1 (Safety Services), and calling elections therein; 3. Hold a special landowner election and canvass the election; and 4. Adopt Resolution No. 2021-39 Resolution of the Mayor and City Council of the 12 Packet Pg. 536 7119 Page 4 City of San Bernardino, California, acting as the legislative body of the City of San Bernardino Community Facilities District No. 2018-1 (Safety Services) certifying the results of the March 3, 2021 annexation and special tax election. Attachments Attachment 1 Project Map Attachment 2 Resolution 2021-38 Attachment 3 Exhibit A - Ballot Attachment 4 Resolution 2021-39 Attachment 5 Exhibit A - Ballot Attachment 6 Exhibit B - Certificate of Election Results Attachment 7 Registrar of Voters Certification Attachment 8 PowerPoint Presentation Ward: 3 Synopsis of Previous Council Actions: August 15, 2018 Mayor and City Council adopted Resolution No. 2018-239, a Resolution of Intention to form Community Facilities District No. 2018-1 (Safety Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”. September 19, 2018 Resolution No. 2018-264 was adopted establishing Community Facilities District No. 2018-1; Resolution No. 2018-265 was adopted declaring election results for Community Facilities District No. 2018-1; and first reading of Ordinance No. MC-1506 levying special taxes to be collected during FY 2019 -20 to pay annual costs of safety services and expenses with respect to Community Facilities District No. 2018-1. October 3, 2018 Final reading of Ordinance No. MC-1506 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2018-1. January 20, 2021 Mayor and City Council adopted Resolution No. 2021-6, a Resolution of Intention to annex territory into Community Facilities District No. 2018-1 (Safety Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”. 12 Packet Pg. 537 PROJECT MAP CFD NO. 2018-1 (SAFETY SERVICES) ANNEXATION NO. 3 12.aPacket Pg. 538Attachment: Attachment 1 - Project Map (7119 : Community Facilities District No. 2018-1 (Safety Services) RESOLUTION NO. 2021-38 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES), ANNEXING TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES), AND CALLING ELECTIONS THEREIN WHEREAS, on August 15, 2018, the City Council (the “City Council”) of the City of San Bernardino adopted Resolution No. 2018-239, declaring its intention to establish Community Facilities District No. 2018-1 of the City of San Bernardino (Safety Services) (“Community Facilities District No. 2018-1” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and WHEREAS, after a duly noticed public hearing, the City Council adopted Resolution No. 2018-264 (the “Resolution of Formation”) establishing Community Facilities District No. 2018-1 and calling a special election therein to authorize (i) the levy of special taxes pursuant to the rate and method of apportionment of the special tax, as set forth in Attachment “D” attached to the Resolution No. 2018-239 (the “Original Rate and Method”), and (ii) the establishment of an appropriations limit for Community Facilities District No. 2018-1; and WHEREAS, pursuant to a petition signed by ICO Fund VI, LLC (the “Owner”), on January 20, 2021, the City Council adopted Resolution No. 20021-6 (the “Resolution of Intention”), stating its intention to annex the territory described in Attachment “A” to the Resolution of Intention (the “Annexation Territory”) to the District; and WHEREAS, a notice of a public hearing to be held on March 3, 2021 was published and mailed to all landowners of the land proposed to be included within the Annexation Territory as required by law relative to the intention of the City Council to annex the Annexation Territory to the District and to levy a special tax in accordance with the Rate and Method (as defined below); and WHEREAS, on March 3, 2021, this City Council held a noticed public hearing as required by law relative to the proposed annexation of the Annexation Territory, the levy of special taxes therein in accordance with the attached as Attachment “C” to the Resolution of Intention (the “Rate and Method”), which Rate and Method is identical to the Original Rate and Method in all respects except that Appendix A thereto has been updated in accordance with the terms of the Original Rate and Method to reflect the annexation described herein; and WHEREAS, at the March 3, 2021 public hearing all persons desiring to be heard on all matters pertaining to the proposed annexation of the Annexation Territory to the District and the levy of the special taxes within the Annexation Territory in accordance with the Rate and Method were heard and a full and fair hearing was held; and 12.b Packet Pg. 539 Attachment: Attachment 2 - Resolution 2021-38 [Revision 1] (7119 : Community Facilities District No. 2018-1 (Safety Services) Annexation No. 3 Resolution No. 2021-38 WHEREAS, at the public hearing, evidence was presented to the City Council on the matters before it, and the proposed annexation of the Annexation Territory to the District and the levy of special taxes within the Annexation Territory in accordance with the Rate and Meth od was not precluded by a majority protest of the type described in Section 53339.6 of the Act, and this City Council at the conclusion of the hearing is fully advised as to all matters relating to the annexation of the Annexation Territory and the levy of the special taxes in accordance with the Rate and Method; and WHEREAS, the City Council has determined that there have been fewer than twelve registered voters residing in the Annexation Territory for the period of 90 days prior to March 3, 2021 and that the qualified electors in Annexation Territory are the landowners therein; and WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to proceed with the annexation of the Annexation Territory to the District and to call an election within the Annexation Territory to authorize the levy of special taxes pursuant to the Rate and Method; BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Each of the above recitals is true and correct. SECTION 2. The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the District and the proposed annexation of the Annexation Territory to the District were valid and in conformity wit h the requirements of law, including the Act. SECTION 3. The map showing the original boundaries of the District designated as “Map of Proposed Boundaries of Community Facilities District No. 2018-1 of the City of San Bernardino (Safety Services),” which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the City of County Book of Maps of Assessment and Community Facilities Districts in the Assessor -County Clerk-Recorder’s office of the County of San Bernardino in Book No. 87 Page No. 96, on August 16, 2018 as Instrument No. 2018-0300849. The map showing the Annexation Territory proposed to be annexed to the District and be made subject to taxation are as shown which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the City of County Book of Maps of Assessment and Community Facilities Districts in the Assessor -County Clerk-Recorder’s office of the County of San Bernardino in Book No. 89 Page No. 50, on February 3, 2021 as Instrument No. 2021-0053174. SECTION 4. The City Council hereby adopts the Rate and Method attached as Attachment “C” to the Resolution of Intention as the applicable rate and method for the Annexation Territory. Except where funds are otherwise available, it is the intention of the City Council, subject to the approval of the eligible voters within the Annexation Territory, to levy the proposed special taxes at the rates within the Annexation Territory set forth in the Rate and Method on all non-exempt property within the Annexation Territory sufficient to pay for (i) the 12.b Packet Pg. 540 Attachment: Attachment 2 - Resolution 2021-38 [Revision 1] (7119 : Community Facilities District No. 2018-1 (Safety Services) Annexation No. 3 Resolution No. 2021-38 Services (as defined in the Rate and Method), (ii) fund an operating reserve for the costs of Services as determined by the City, and (v) Administrative Expenses (as defined in the Rate and Method). The District expects to incur, and in certain cases has already incurred, Administrative Expenses in connection with the annexation of the Annexation Territory to the District. The rate and method of apportionment of the special tax applicable to the Annexation Territory is described in detail in Attachment “C” to the Resolution of Intention which is incorporated herein by this reference, and the City Council hereby finds that Attachment “C” to the Resolution of Intention contains sufficient detail to allow each landowner within the Annexation Territory to estimate the maximum amount that may be levied against each parcel. The special tax is apportioned to each parcel on the foregoing bases pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the ownership of real property. SECTION 5. The City’s City Manager will be responsible for preparing annually, or authorizing a designee to prepare, a current roll of special tax levy obligations by assessor’s parcel number and will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Act. The special tax may be levied for such period as the Services are needed, as further described in Attachment “B” to the Resolution of Intention. SECTION 6. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in the Annexation Territory and this lien shall continue in force and effect until the levy of the special tax by the District ceases in accordance with the Rate and Method. SECTION 7. Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within the Annexation Territory, if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within the Annexation Territory and will be benefited by the Services proposed to be provided within Community Facilities District No. 2018-1 and the Annexation Territory. SECTION 8. It is hereby further determined that there is no ad valorem property tax currently being levied on property within the Annexation Territory for the exclusive purpose of paying for the same services as are proposed to be provided by Community Facilities District No. 2018-1. SECTION 9. Written protests against the annexation of the Annexation Territory to the District and the levy of the special tax therein have not been filed by one-half or more of the registered voters within the boundaries of the Annexation Territory to the District or by the property owners of one-half or more of the area of land within the boundaries of the Annexation Territory. The City Council hereby finds that the proposed special tax for the Annexation Territory has not been precluded by a majority protest pursuant to Section 53324 of the Act. SECTION 10. An election is hereby called for the Annexation Territory on the propositions of annexation to the District and the levying the special tax on the property within such Annexation Territory, pursuant to Section 53339.7 of the Act. The propositions to be placed on the ballot for the Annexation Territory are attached hereto as Attachment “A.” 12.b Packet Pg. 541 Attachment: Attachment 2 - Resolution 2021-38 [Revision 1] (7119 : Community Facilities District No. 2018-1 (Safety Services) Annexation No. 3 Resolution No. 2021-38 SECTION 11. The date of the foregoing elections for each Proposed Annexation Territory shall be March 3, 2021, or such later date as is consented to by the City Clerk and the landowners within the Annexation Territory. The City Clerk shall conduct the elections. Except as otherwise provided by the Act, the elections shall be conducted by personally delivered or mailed ballot and, except as otherwise provided by the Act, the elections shall be conducted in accordance with the provisions of law regulating elections of the City insofar as su ch provisions are determined by the City Clerk to be applicable. SECTION 12. It is hereby found that there are not more than twelve registered voters within the territory of the Annexation Territory, and, pursuant to Section 53339.7 of the Act, each landowner who is the owner of record on the date hereof, or the authorized representative thereof, shall have one vote for each acre or portion thereof that he or she owns within the Annexation Territory. SECTION 13. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 14. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 15. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ____day of __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 12.b Packet Pg. 542 Attachment: Attachment 2 - Resolution 2021-38 [Revision 1] (7119 : Community Facilities District No. 2018-1 (Safety Services) Annexation No. 3 Resolution No. 2021-38 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-38, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 12.b Packet Pg. 543 Attachment: Attachment 2 - Resolution 2021-38 [Revision 1] (7119 : Community Facilities District No. 2018-1 (Safety Services) Annexation No. 3 EXHIBIT A CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES) ANNEXATION NO. 3 (March 3, 2021) This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2018-1 (Safety Services) (“CFD No. 2018-1”) of the City of San Bernardino: Name of Landowner Number of Acres Owned Total Votes ICO Fund VI, LLC 9.66 10 According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of San Bernardino (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax. This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to form the CFD No. 2018-1, City of San Bernardino, County of San Bernardino, State of California. Please advise the City Clerk, at (909) 384-5002 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows: Mail Delivery: If by mail, place ballot in the return envelope provided, and mail no later than February 17, 2021, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted. Personal Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on March 3, 2021, at the Clerk’s office at 201 N. “E” Street, Bldg A, City of San Bernardino, CA 92401. However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on March 3, 2021. Very truly yours, Genoveva Rocha, CMC, City Clerk 12.c Packet Pg. 544 Attachment: Attachment 3 - Exhibit A: Ballot (7119 : Community Facilities District No. 2018-1 (Safety Services) Annexation No. 3 (Ward 3)) TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE. OFFICIAL SPECIAL TAX BALLOT Name & Address of Property Owner: Assessor’s Parcel Number(s): ICO Fund VI, LLC Attn: Joe Oftelie 3090 Pullman Street Costa Mesa, CA 92626 0281-161-48 CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES) AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT PROPOSITION A MARK “YES” OR “NO” WITH AN “X”: Shall the territory described in Attachment “A” of Resolution No. 2021-6 of the Mayor and City Council of the City of San Bernardino be annexed to Community Facilities District No. 2018-1 (Safety Services)? YES _________ NO _________ PROPOSITION B MARK “YES” OR “NO” WITH AN “X”: Shall a special tax with a rate and method of apportionment as provided in Attachment “C” to Resolution No. 2021-6 of the Mayor and City Council of the City of San Bernardino be levied to pay for the Services and other purposes described in Resolution No. 2018-264? YES _________ NO _________ Certification for Special Election Ballot The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__. ICO Fund VI, LLC By: Joe Oftelie VP of Community Development Signature Print Name Title 12.c Packet Pg. 545 Attachment: Attachment 3 - Exhibit A: Ballot (7119 : Community Facilities District No. 2018-1 (Safety Services) Annexation No. 3 (Ward 3)) RESOLUTION NO. 2021-39 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES) CERTIFYING THE RESULTS OF THE MARCH 3, 2021 ANNEXATION AND SPECIAL TAX ELECTION WHEREAS, the City Council (the “City Council”) of City of San Bernardino (the “City”) called and duly held consolidated elections on March 3, 2021 within the boundaries of certain territory (the “Annexation Territory”) described in Attachment “A” to Resolution No. 2021-6 adopted by the City Council on January 20, 2021, which territory is to be annexed to Community Facilities District No. 2018-1 (Safety Services) of the City of San Bernardino (“Community Facilities District No. 2018-1” or the “District”) pursuant to Resolution No. 2021- 38 for the purpose of presenting to the qualified electors within the Annexation Territory the propositions attached hereto as Attachment A; and WHEREAS, there has been presented to this City Council a certificate of the City Clerk canvassing the results of the election, a copy of which is attached hereto as Attachment B; BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Each of the above recitals is true and correct and is adopted by the legislative body of the District. SECTION 2. The Proposition presented to the qualified electors of the Annexation Territory on March 3, 2021 were approved by more than two-thirds of the votes cast at the election held for the Annexation Territory and Propositions A and B each has carried. The City Council, acting as the legislative body of the District, is hereby authorized to levy on the land within the Annexation Territory, which is hereby annexed to the District in accordance with Proposition A, the special tax described in Proposition B for the purposes described therein. SECTION 3. The City Council, acting as the legislative body of the District, is hereby authorized to take the necessary steps to levy the special tax authorized by Proposition B in accordance with Ordinance No. MC-1506 approved by the City Council, acting as the legislative body of the District. SECTION 4. The City Clerk is hereby directed to record in the Office of the County Recorder within fifteen days of the date hereof a notice of special tax lien for the Annexation Territory which Bond Counsel to the District shall prepare in the form required by Streets and Highways Code Section 3114.5. 12.d Packet Pg. 546 Attachment: Attachment 4 - Resolution 2021-39 [Revision 1] (7119 : Community Facilities District No. 2018-1 (Safety Services) Annexation No. 3 Resolution No. 2021-39 SECTION 5. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 6. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 7. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 12.d Packet Pg. 547 Attachment: Attachment 4 - Resolution 2021-39 [Revision 1] (7119 : Community Facilities District No. 2018-1 (Safety Services) Annexation No. 3 Resolution No. 2021-39 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-39, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 12.d Packet Pg. 548 Attachment: Attachment 4 - Resolution 2021-39 [Revision 1] (7119 : Community Facilities District No. 2018-1 (Safety Services) Annexation No. 3 EXHIBIT A CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES) ANNEXATION NO. 3 (March 3, 2021) This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2018-1 (Safety Services) (“CFD No. 2018-1”) of the City of San Bernardino: Name of Landowner Number of Acres Owned Total Votes ICO Fund VI, LLC 9.66 10 According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of San Bernardino (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax. This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to form the CFD No. 2018-1, City of San Bernardino, County of San Bernardino, State of California. Please advise the City Clerk, at (909) 384-5002 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows: Mail Delivery: If by mail, place ballot in the return envelope provided, and mail no later than February 17, 2021, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted. Personal Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on March 3, 2021, at the Clerk’s office at 201 N. “E” Street, Bldg A, City of San Bernardino, CA 92401. However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on March 3, 2021. Very truly yours, Genoveva Rocha, CMC, City Clerk 12.e Packet Pg. 549 Attachment: Attachment 5 - Exhibit A: Ballot (7119 : Community Facilities District No. 2018-1 (Safety Services) Annexation No. 3 (Ward 3)) TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE. OFFICIAL SPECIAL TAX BALLOT Name & Address of Property Owner: Assessor’s Parcel Number(s): ICO Fund VI, LLC Attn: Joe Oftelie 3090 Pullman Street Costa Mesa, CA 92626 0281-161-48 CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES) AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT PROPOSITION A MARK “YES” OR “NO” WITH AN “X”: Shall the territory described in Attachment “A” of Resolution No. 2021-6 of the Mayor and City Council of the City of San Bernardino be annexed to Community Facilities District No. 2018-1 (Safety Services)? YES _________ NO _________ PROPOSITION B MARK “YES” OR “NO” WITH AN “X”: Shall a special tax with a rate and method of apportionment as provided in Attachment “C” to Resolution No. 2021-6 of the Mayor and City Council of the City of San Bernardino be levied to pay for the Services and other purposes described in Resolution No. 2018-264? YES _________ NO _________ Certification for Special Election Ballot The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__. ICO Fund VI, LLC By: Joe Oftelie VP of Community Development Signature Print Name Title 12.e Packet Pg. 550 Attachment: Attachment 5 - Exhibit A: Ballot (7119 : Community Facilities District No. 2018-1 (Safety Services) Annexation No. 3 (Ward 3)) EXHIBIT B CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES) ANNEXATION NO. 3 CERTIFICATE OF ELECTION RESULTS I, the undersigned, being the Deputy City Clerk or the Acting City Clerk, as the case may be, hereby certify: In connection with the special mailed-ballot election called by the City Council (the “City Council”) of the City of San Bernardino (the “City”) on this same date in the proceedings of the City Council for the annexation of territory to the above-entitled community facilities district, I personally received (a) a signed and dated waiver and consent form and (b) a signed, da ted and marked election ballot(s) on behalf of the owner(s) listed below, the entity named as the sole landowner of the land within the boundary of the above-entitled community facilities district in the Certificate Regarding Registered Voters and Landowners, dated January 26, 2021, and on file in the office of the City Clerk of the City in connection with the City Council actions on that date. Copies of the completed waiver and consent form and the completed ballot received by me and on file in my office are attached hereto. Following such receipt, I have personally, and in the presence of all persons present, reviewed the ballot to confirm that it is properly marked and signed, and I hereby certify the result of that count to be that the ballot was cast in favor of the measure. Based upon the foregoing, all votes that were cast having been cast “Yes”, in favor of the ballot measures, the measures has therefore passed. Landowner Qualified Landowner Votes Votes Cast PROPOSITION A PROPOSITION B YES NO YES NO ICO Fund VI, LLC I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 2021. Genoveva Rocha, CMC City Clerk City of San Bernardino By: (Attach completed copies of Waiver/Consent and Ballot) 12.f Packet Pg. 551 Attachment: Attachment 6 - Exhibit B: Certificate of Election Results (7119 : Community Facilities District No. 2018-1 (Safety Services) January 29, 2021 Spicer Consulting Group 41619 Margarita Rd, Suite 101 Temecula, CA 92591 Attention: Shane Spicer To Whom It May Concern: On January 13, 2021, the San Bernardino County Registrar of Voters received a request to provide the number of registered voters residing within the City of San Bernardino Community Facilities District No. 2018-1 (Safety Services), Annexation No. 3. After examining the voter registration records within this area, the Registrar of Voters certifies the following information as of January 26, 2021: Registered voters within the area: 0 An invoice for services rendered for this request will be provided later. If you have any questions, please contact the Registrar of Voters at (909) 387-8300. Sincerely, Melissa Eickman Media Specialist Registrar of Voters Bob Page Registrar of Voters 777 East Rialto Avenue, San Bernardino, CA 92415 | Phone: 909.387.8300 Fax: 909.387.2022 12.g Packet Pg. 552 Attachment: Attachment 7 - Registrar of Voters Certification (7119 : Community Facilities District No. 2018-1 (Safety Services) Annexation No. 3 Public Hearings Ferree Street Development APN: 0281-161-48 (TR 20293) CFD No. 2018-1 (Safety Services) Annexation No. 3 CFD No. 2019-1 (Maintenance Services) Annexation No. 7 CFD No. 2021-1 (Ferree Street) Formation 1 12.h Packet Pg. 553 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearings on Ferree Residential Project Background •The proposed residential project includes one parcel APN 0281-161-48 within TR 20293. This proposed development is to include 96 detached single-family residential lots. •The Property Owner, ICO Fund VI, LLC, has requested the City assist them in: •Annexing territory into CFD No. 2018-1 (Safety Services) to mitigate the impacts to Public Safety services; and •Annexing territory into CFD No. 2019-1 (Maintenance Services) to cover the costs associated with public maintenance services; and •Formation of CFD No. 2021-1 (Ferree Street) to finance certain public improvements 2 12.h Packet Pg. 554 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearings on Ferree Residential Project Background •Proposed timeline for CFD annexations/formation: •Project Approval for TR 20293 •Planning Commission – September 22, 2020 •City Council – November 4, 2020 •CFD Action Items •City Council Meetings – Adopt Resolution of Intentions (ROI) – 1/20/2021 •Public Hearing – Hold Public Hearing and Resolutions, conduct election, and introduce 1st Reading of Ordinances – 3/3/2021 •Each Public Hearing has to be held separately •2nd Reading of Ordinance – 3/17/2021 3 12.h Packet Pg. 555 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Project Location 4 12.h Packet Pg. 556 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Tract Map No. 20293 5 12.h Packet Pg. 557 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Maintenance Exhibit 6 12.h Packet Pg. 558 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearing on CFD 2018-1 (Safety Services) Annexation No. 3 7 12.h Packet Pg. 559 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearing on CFD 2018-1 Annexation No. 3 Recommended Action City Council initiate annexation of territory to City of San Bernardino Community Facilities District No. 2018-1 (Safety Services) ("CFD No. 2018-1" or "CFD") by taking the following actions: a. Hold public hearing, b. Adopt a Resolutioncalling the election, c. Hold a special landowner election and canvass the election, d. Adopt a Resolutiondeclaring results of special landowner election; 8 12.h Packet Pg. 560 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearing on CFD 2018-1 Annexation No. 3 Discussion •The Property Owner, ICO Fund VI, LLC, has requested the City assist them in annexing territory into CFD No. 2018-1 to cover the costs associated with Public Safety services. •The area proposed within Annexation No. 3 includes one parcel APN 0281-161-48 within TR 20293. This proposed development is to include 96 detached single-family residential lots. •On January 20, 2021 the City Council adopted Resolution No. 2021-6, a Resolution of Intention to annex these properties into CFD No. 2018-1 and hold a Public Hearing on March 3, 2021. The property owner consented to waiving certain time restriction and conduct the election the same night. 9 12.h Packet Pg. 561 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearing on CFD 2018-1 Annexation No. 3 Discussion (Cont.) •The proposed maximum annual tax of $385 per residential unit for Fiscal Year 2021-22. •The Special Tax is proposed to escalate each year after July 1, 2024 by 4%. •The services, which may be funded with proceeds of the special tax include: •Police protection services (including but not limited to criminal justice services) and paramedic services; and •City and County costs associated with the setting, levying and collection of the special tax, and in the administration of the District including the contract administration and operating reserves. 10 12.h Packet Pg. 562 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearing on CFD 2018-1 Annexation No. 3 Fiscal Impact •It is anticipated that at build-out the total Special Tax revenues to pay for public safety services will be approximately $36,960. All costs associated with the annexation is borne by the Developer. There is no fiscal impact to the City’s General Fund. 11 12.h Packet Pg. 563 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearing on CFD 2019-1 (Maintenance Services) Annexation No. 7 12 12.h Packet Pg. 564 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearing on CFD 2019-1 Annexation No. 7 Recommended Action 1. City Council initiate annexation of territory to City of San Bernardino Community FacilitiesDistrict No. 2019-1 (Maintenance Services) ("CFD No. 2019-1" or "CFD") by taking the followingactions: a. Hold public hearing, b. Adopt a Resolution calling the election, c. Hold a special landowner election and canvass the election, d. Adopt a Resolution declaring results of special landowner election; and 2. Upon approval of the preceding resolutions, Introduce an Ordinance amending Ordinance No.MC-1522 and levying and apportioning the special tax in CFD No. 2019-1 (as it now exists andwill exist in the future); and 3. Schedule the final reading and adoption of the Amended Ordinance for March 17, 2021. 13 12.h Packet Pg. 565 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearing on CFD 2019-1 Annexation No. 7 Discussion •The Property Owner, ICO Fund VI, LLC, has requested the City assist them in annexing territory into CFD No. 2019-1 to cover the costs associated with the maintenance of Public Improvements. •The area proposed within Annexation No. 7 includes one parcel APN 0281-161-48 within TR 20293. •On January 20, 2021 the City Council adopted Resolution No. 2021-17, a Resolution of Intention to annex these properties into CFD No. 2019-1 and hold a Public Hearing on March 3, 2021. The property owner consented to waiving certain time restriction and conduct the election the same night. 14 12.h Packet Pg. 566 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearing on CFD 2019-1 Annexation No. 7 Discussion (Cont.) •The proposed maximum annual tax of $216 per unit will be included in CFD No. 2019-1 as Tax Zone 8. •The maximum annual tax is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. 15 12.h Packet Pg. 567 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearing on CFD 2019-1 Annexation No. 7 Discussion (Cont.) •The services, which may be funded with proceeds of the special tax include: •All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way •Public lighting including street lights and traffic signals, •Maintenance of streets, including pavement management, and street sweeping, •Maintenance and operation of water quality improvements including storm drainage and flood protection facilities •In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds. 16 12.h Packet Pg. 568 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearing on CFD 2019-1 Annexation No. 7 Fiscal Impact •It is anticipated that at build-out the total Special Tax revenues to pay for maintenance costs will be approximately $20,717. All costs associated with the annexation is borne by the Developer. There is no fiscal impact to the City’s General Fund. 17 12.h Packet Pg. 569 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearing on Formation of CFD 2021-1 (Ferree Street) 18 12.h Packet Pg. 570 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearing on CFD 2021-1 Formation Recommended Action 1. City Council initiate formation of Community Facilities District No. 2021-1 (Ferree Street) (CFD No.2021-1) by taking the followingactions: a. Hold public hearing, b. Adopt a Resolution establishing CFD No. 2021-1 and the boundaries thereof and approvingFunding and Acquisition, c. Adopt a Resolution determining necessity to incur bonded indebtedness, c. Adopt a Resolution calling the election, d. Hold a special landowner election and canvass the election, e. Adopt a Resolution declaring results of special landowner election; and 2. Upon approval of the preceding resolutions, Introduce an Ordinance authorizing the levy of specialtaxes within CFD No. 2021-1; and 3. Schedule the final reading and adoption of the Ordinance for March 17, 2021. 19 12.h Packet Pg. 571 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearing on CFD 2021-1 Formation Discussion •On January 20, 2021 the Mayor and City Council approved Resolution No. 2021-4 and 2021-5 which initiated the formation of the CFD, approve the boundaries of the proposed CFD, describe the facilities proposed to be finance, proposed a rate and method of apportionment of special taxes and declared the necessity to issue bonds to finance the Facilities for CFD No. 2021-1. •The Property Owner, ICO Fund VI, LLC, has requested the City assist them in forming CFD No. 2021-1 to finance certain public improvements through the levy of a special tax and the issuance of bounds in an amount not to exceed $4,000,000. 20 12.h Packet Pg. 572 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearing on CFD 2021-1 Formation Discussion (Cont.) •The area proposed within CFD No. 2021-1 includes one parcel APN 0281-161-48 within TR 20293. This proposed development is to include 96 detached single-family residential lots. •As required by the ROI the proposed boundary map for CFD No. 2021-1 was recorded February 3, 2021 in Book 89, Page 51 Document No. 2021-0053175. 21 12.h Packet Pg. 573 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearing on CFD 2021-1 Formation Discussion (Cont.) •The CFD Public Hearing Report was prepared by Spicer Consulting Group and describes and analyzes the facilities to be finance by the CFD and the estimated costs of such facilities. •The anticipated issuance amount based on current rates would be approximately $3,100,000 which would cover a reserve fund, financing costs, and generate approximately $2,557,199 in net bond proceeds for facilities. •The proposed facilities, which may be funded with proceeds of the bonds include: •$1,010,460 – City Water District Improvements •$1,546,739 – City Development Impact Fees •In addition to the costs of the foregoing facilities, proceeds of the special tax may be expended to pay administrative costs. 22 12.h Packet Pg. 574 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearing on CFD 2021-1 Formation Discussion (Cont.) •The proposed development is proposing to build 96 detached residential units with home sizes ranging from 1,845 to 2,045 square feet. •The project is currently annexing into CFD 2018-1 (Public Safety) to cover police and ambulance services. •The project is also currently annexing into CFD 2019-1 (Maintenance Services) to cover landscaping, lighting, street sweeping and pavement management, drainage, parks and trails, and graffiti abatement service costs. •The total tax effective tax rate is estimated at 1.91% of projected home prices. This is within the 2% allowable tax rate limit in the City’s Financing Goals and Policies. •The estimated assigned annual tax rates range from $2,266 for home sizes less than 1,850 square feet to $2,433 for home sizes greater than 2,000 square feet. 23 12.h Packet Pg. 575 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearing on CFD 2021-1 Formation Discussion (Cont.) •Proposed timeline for facilities CFD formation: •City Council Meeting – Adopt Resolution of Intention (ROI) – 1/20/2021 •Public Hearing – Hold Public Hearing and Resolution, conduct election, and introduce 1 st Reading of Ordinance – 3/3/2021 •2nd Reading of Ordinance – 3/17/2021 •Bond Issuance would be requested by Developer after certain criteria has been met: •Development Threshold – Building Permits Issued •Individually Owned Threshold – Diversification of Ownership •Value-to-Lien Threshold – Exceeds 4:1 •Letter of Credit Secured – If necessary •An offering document would be prepared and presented to City Council prior to Bond Issuance 24 12.h Packet Pg. 576 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Public Hearing on CFD 2021-1 Formation Fiscal Impact •The Special Tax will be levied annually on taxable properties in CFD No. 2021-1 in accordance with the Rate and Method of Apportionment (RMA) to pay for the cost of facilities, debt service on bonds, and administration of the CFD. Any bonds issued by CFD No. 2021-1 are NOT obligations of the City and will be secured solely by the Special Taxes levied in CFD No. 2021-1. •All costs associated with the formation is borne by the Developer. The ROI included Section 8 to approve by resolution the ability to reimburse the developer for these costs if and when bonds are issued for the CFD. •There is no fiscal impact to the City’s General Fund 25 12.h Packet Pg. 577 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Questions? 26 12.h Packet Pg. 578 Attachment: Attachment 8 - PowerPoint Presentation (7119 : Community Facilities District No. 2018-1 Page 1 Public Hearing City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Kris Jensen, Director of Public Works Subject: Community Facilities District No. 2019-1 (Maintenance Services): Annexation No. 7 (Ward 3) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; and 2. Adopt Resolution No. 2021-40 of the Mayor and City Council of the City of San Bernardino, California, calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 7); 3. Hold a special landowner election and canvass the election; 4. Adopt Resolution No. 2021-41 of the Mayor and City Council of the City of San Bernardino, California, declaring election results for Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 7); 5. Introduce Ordinance No. MC-1554 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2021-22 to pay the annual costs of the maintenance and servicing of landscaping, lighting, streets, street sweeping, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and 6. Schedule the final reading and adoption of Ordinance No MC -1554 for March 17, 2021. Background On January 20, 2021, the Mayor and City Council adopted Resolution No. 2021 -17, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 13 Packet Pg. 579 7091 Page 2 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello -Roos Community Facilities Act of 1982”. A public hearing was set for March 3, 2021 on the proposed annexation of the said territory into the community facilities district. As required by the Resolution of Intention, a boundary map was recorded on February 3, 2021, at 10:54 a.m. in Book 89 Page 48, Document No. 2021-0053172 of Maps of Assessment and Community Facilities Districts with the San Bernardino County Recorder. The Resolution of Intention was adopted by the Mayor and City Council in response to a petition filed by the property owner of approximately 9.66 gross acres of vacant residential property on Assessor’s Parcel Number 0281 -161-48 within the City, requesting that the City assist them in annexing their properties into CFD No. 2019 -1 under the Mello-Roos Act. The State legislature enacted the Mello-Roos Act in 1982 to assist public agencies in financing certain public improvements by either issuing tax exempt securities that are repaid by annual levy of special taxes, or to provide for the financing of on-going public services. The landowner requested the City annex into CFD No. 2019-1 to levy a special tax to cover the costs associated with the maintenance of public improvements. The public facilities and services proposed to be financed within the territory to be annexed to the District are the following: 1. Maintenance of median landscaping and other public improvements installed within the public rights-of-way; 2. Public lighting and appurtenant facilities, including street lights within public rights-of-way and traffic signals; 3. Maintenance of streets, including pavement management, and provide street sweeping; 4. Maintenance and operation of water quality improvements including storm drainage and flood protection facilities; and 5. City and County costs associated with the setting, levying and c ollection of the special tax, and in the administration of the District including the contract administration and for the collection of reserve funds. The proposed area to be annexed into the CFD will be included in Tax Zone 8 and is located north of 1-10, south of Sycamore Lane between Ferree Street and Richardson Street, as shown in Attachment #1. The maximum annual special tax for this development has been calculated to be $216 per unit for FY 2021/22. This tax rate includes a Maximum Special Tax A o f $194 per unit per year for maintenance services of public facilities and a Maximum Annual Special Tax B (Contingent) of $22 per unit per year. If the Property Owners Association (POA) were to default of its obligation to maintain such improvements, the C ity would be able to collect funds to pay for those services. The maximum annual tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. 13 Packet Pg. 580 7091 Page 3 The property owners have agreed to initiate and conduct the CFD annexation proceedings pursuant to the Mello-Roos Act of 1982. The property owners have submitted a “Consent and Waiver” form on file in the City Clerk’s Office to initiate and conduct proceedings pursuant to the Mello-Roos Act in 1982, for the annexation into the CFD and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election. In order to annex property to CFD No. 2019 -1 pursuant to the provisions of California Government Code Section 53311 et seq., the City must adopt a series of three statutorily required Resolutions and an Ordinance which are summarized below. Resolution declaring the City’s intent to annex territory to Community Facilities District No. 2019-1 including the boundary of the area to be annexed and the rate and method of apportionment of special taxes within the annexation area (the special tax applies only to properties within the annexation area), adopted January 20, 2021. Resolution calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to the District. Resolution declaring the results of the election and directing the recording of the notice of special tax lien. Amend the Ordinance and order the levy and collection of special taxes in the District. With the adoption of the Resolutions and the first reading of the amended Ordinance, the second reading of the amended Ordinance would be scheduled for March 17, 2021. Discussion The Resolution of Intention called for a public hearing to be held on March 3, 2021 , on the issue of the annexation of territory into CFD No. 2019-1. Under the Mello-Roos Act, the City Council must hold the public hearing and consider any protests against the formation of the CFD. If the owners of one half or more of the land within the proposed boundaries of the CFD file written protests against the establishment of the CFD, the Council may not create the CFD. If a majority protes t is not filed, the City Council may adopt the resolution establishing the CFD. Adoption of Resolution No. 2019-178 on July 17, 2019 established CFD 2019-1, pursuant to the requirements of Government Code Section 53325.1. After a CFD is formed, the Mello-Roos Act requires that for any annexations into the CFD an election be held on the question of whether the proposed special taxes should be levied. The election requires a two-thirds vote in favor of levying the special tax. The landowners filed waivers with respect to the conduct of the election pursuant to Government Code Sections 53326(a) and 53327(b), meaning that the time limits and procedural requirements for conducting an election under the Mello -Roos Act do not have to be 13 Packet Pg. 581 7091 Page 4 followed. Accordingly, City staff has already mailed the election ballots to the landowners and required the ballots to be returned by the close of the public hearing . If the Mayor and City Council adopt Resolution No. 2021 -40, it may immediately proceed to the opening of the ballots and adopt Resolution No. 2021-41 declaring the results of the election. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No. 1: Financial Stability and Key Target No. 4: Economic Growth and Development. This project will contribute to ensure that the City is clean and attractive and provide infrastructure designed for long term economic growth. Fiscal Impact The individual property owners in the CFD will be responsible for annual payments of special taxes. It is estimated, upon full completion of the development, there will be an annual collection of special tax revenues of approximately $20,717 to be used to pay for maintenance costs within the development. On March 1 of each year, every taxable unit for which a building permit has been issued within the boundaries of the CFD will be subject to the special tax for the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to build out of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be applied to property within recorded final subdivision maps, as well as other undeveloped property within the boundaries of the CFD. All costs associated with annexation into the CFD have been borne by the Developer. By annexing into the CFD, the costs of maintaining improvements located within the development will be financed through special taxes levied on the parcels within CF D No. 2019-1 and not through the City’s General Fund. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; and 2. Adopt Resolution No. 2021-40 of the Mayor and City Council of the City of San Bernardino, California, calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 7); 3. Hold a special landowner election and canvass the election; 4. Adopt Resolution No. 2021-41 of the Mayor and City Council of the City of San Bernardino, California, declaring election results for Community Facilities 13 Packet Pg. 582 7091 Page 5 District No. 2019-1 (Maintenance Services) (Annexation No. 7); 5. Introduce Ordinance No. MC-1554 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2021 -22 to pay the annual costs of the maintenance and servicing of landscaping, lighting, streets, street sweeping, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and 6. Schedule the final reading and adoption of Ordinance No MC -1554 for March 17, 2021. Attachments Attachment 1 Resolution No. 2021-40 Calling an Election Attachment 2 Resolution No. 2021-40; Exhibit A Description of Proposed Territory Attachment 3 Resolution No. 2021-40; Exhibit B Rate and Method of Apportionment Attachment 4 Resolution No. 2021-40; Exhibit C Ballot Attachment 5 Resolution No. 2021-41; Declaring Election Results Attachment 6 Resolution No. 2021-41; Exhibit A Certificate of Election Results Attachment 7 Ordinance No. MC-1554 Attachment 8 Ordinance No. MC-1554; Exhibit A Description of Services Attachment 9 Ordinance No. MC-1554; Exhibit B Parcel List Attachment 10 Petition Attachment 11 Project Map Attachment 12 PowerPoint Presentation Ward: 3 Synopsis of Previous Council Actions: June 5, 2019 Mayor and City Council adopted Resolution No. 2019 -81, a Resolution of Intention to form Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Be rnardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello - Roos Community Facilities Act of 1982.” July 17, 2019 Resolution No. 2019-178 was adopted establishing Community Facilities District No. 2019-1; Resolution No. 2019-179 was adopted declaring election results for Community Facilities District No. 2019-1; and first reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019 -20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. 13 Packet Pg. 583 RESOLUTION NO. 2021-40 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, CALLING AN ELECTION TO SUBMIT TO THE QUALIFIED ELECTORS THE QUESTION OF LEVYING A SPECIAL TAX WITHIN THE AREA PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 7) WHEREAS, the Mayor and City Council (the “City Council”) of the City of San Bernardino (the “City”), adopted its Resolution No. 2019-081, (the “Resolution of Intention”) (i) declaring its intention to establish Community Facilities District No. 2019-1 (Maintenance Services) (the “CFD No. 2019-1”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), commencing with Section 53311 of the California Government Code (the “Government Code”), (ii) proposing to levy a special taxes within CFD No. 2019 -1 pursuant to the terms of the Act to fund the cost of providing maintenance services (the “Services”) described in Exhibit B of the Resolution of Intention, and WHEREAS, the City Council set a public hearing for July 17, 2019 after which the Council adopted Resolution No. 2019-178 forming the CFD No. 2019-1 and calling a special election at which the questions of levying a special tax and establishing an appropriations limit with respect to the CFD No. 2019-1 were submitted to the qualified electors within the CFD No. 2019-1; and WHEREAS, on July 17, 2019, the City Council adopted Resolution No. 2019-179 declaring the results of the special election and finding that more than two-thirds (2/3) of all votes cast at the special election were cast in favor of the proposition presented, and such proposition passed; and WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code as amended (the "Act"), to annex territory into an existing community facilities district by complying with the procedures set forth in said Article 3.5; and WHEREAS, the City Council on January 20, 2021 duly adopted Resolution No. 2021-17 (the “Resolution of Intention”) declaring its intention to annex certain territory to CFD No. 2019- 1 (Maintenance Services) and to levy a special tax within that territory to pay for certain services and setting a time and place for the public hearing on the proposed annexation for March 3, 2021; and WHEREAS, the territory proposed to be annexed is identified in a map entitled "Annexation Map No. 7 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on February 3, 2021, in Book 89 of Maps of Assessment and Community Facilities Districts at Page 48, in the office of the San Bernardino County Recorder; and 13.a Packet Pg. 584 Attachment: Attachment 1 - Resolution No. 2021-40 [Revision 2] (7091 : Community Facilities District No. 2019-1 (Maintenance Services): Resolution No. 2021-40 WHEREAS, pursuant to the Act and the Resolution of Intention, a noticed public hearing was convened by the City Council on March 3, 2021, not earlier than the hour of 7:00 p.m. at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92418, relative to the proposed annexation of said territory to CFD No. 2019-1. At the hearing, the testimony of all interested persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the March 3, 2021 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of San Bernardino (www.sbcity.org), and outside of the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92418. A copy of the Agenda will be made available upon request to the San Bernardino City Clerk's office at 909-384-5002; and WHEREAS, written protests have not been filed by fifty percent (50%) or more of the registered voters residing within the CFD No 2019-1, or by fifty percent (50%) or more of the registered voters residing within the territory to be annexed, or by the owners of one-half (1/2) or more of the area within the CFD No. 2019-1, or by the owners of one-half (1/2) or more of the territory to be annexed; and WHEREAS, the City Council has determined that there are fewer than twelve registered voters residing in the territory proposed to be annexed to the CFD No. 2019-1 and that the qualified electors in such territory are the landowners; and WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to call an election to authorize the annexation of territory to the CFD No. 2019-1 and the levying of a special tax as described in Exhibit A hereto; and WHEREAS, the City Council has received a written instrument from each landowner in the territory proposed to be annexed to the CFD No. 2019-1 consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and WHEREAS, the City Clerk has concurred in the election date set forth herein. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Recitals. The foregoing recitals are true and correct. SECTION 2. Conformation of Finding in Resolution of Intention. The City Council reconfirms all of its findings and determinations as set forth in the Resolution of Intention. SECTION 3. Findings Regarding Protests. The City Council finds and determines that written protests to the proposed annexation of territory to the CFD No. 2019-1 and the levy of 13.a Packet Pg. 585 Attachment: Attachment 1 - Resolution No. 2021-40 [Revision 2] (7091 : Community Facilities District No. 2019-1 (Maintenance Services): Resolution No. 2021-40 the special tax within such territory are insufficient in number and in amount under the Act, and the City Council hereby further orders and determines that all such protests are hereby overruled. SECTION 4. Findings Regarding Prior Proceedings. The City Council finds and determines that all prior proceedings had and taken by the City Council with respect to the annexation of territory to CFD No. 2019-1 are valid and in conformity with the requirements of the Act. SECTION 5. Levy of Special Tax. As stated in the Resolution of Intention, except where funds are otherwise available, subject to the approval of the qualified electors of territory proposed to be annexed to CFD No. 2019-1, a special tax sufficient to pay the costs of the Services (including incidental expenses as described in the Resolution of Intention), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2019-1, will be levied annually in CFD No. 2019-1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit B hereto. SECTION 6. Apportionment of Tax. The special tax as apportioned to each parcel is based on the cost of making the Services available to each parcel, or other reasonable basis, and is not based on or upon the ownership of real property. SECTION 7. Tax Roll Preparation. The office of the Public Works Director, 201 North “E” Street, San Bernardino, California 92418, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax levies pursuant to Government Code section 53340.2. The Public Works Director may cause these functions to be performed by his or her deputies, assistants, or other designated agents. SECTION 8. Accountability Measures. Pursuant to Section 50075.1 of the California Government Code, the City shall create a separate account int o which tax proceeds will be deposited; and the Public Works Director annually shall file a report with the City Council that will state (a) the amount of funds collected and expended and (b) the status of the Services financed in CFD No. 2019-1. SECTION 9. Special Election; Voting Procedures. The City Council hereby submits the questions of levying the special tax within the territory proposed to be annexed to the qualified electors, in accordance with and subject to the Act. The special election shall be held on March 3, 2021, and shall be conducted as follows: (a) Qualified Electors. The City Council hereby determines that the Services are necessary to meet increased demands placed upon the City as a result of development occurring within the boundaries of CFD No. 2019-1. Because fewer than twelve registered voters resided within the territory proposed to be annexed to CFD No. 2019-1 on January 26, 2021 (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to CFD No. 2019-1), the qualified electors shall be the landowners within territory proposed to be annexed, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to CFD No. 2019-1. 13.a Packet Pg. 586 Attachment: Attachment 1 - Resolution No. 2021-40 [Revision 2] (7091 : Community Facilities District No. 2019-1 (Maintenance Services): Resolution No. 2021-40 (b) Consolidation of Elections; Combination of Propositions on Ballot. The election on the question of levying the special tax and establishing an appropriations li mit for CFD No. 2019-1 shall be consolidated, and the two proportions shall be combined into a single ballot proposition for submission to the voters, as authorized by Government Code Section 53353.5. (c) Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The City Council hereby ratifies the City Clerk’s delivery of a ballot to each landowner within the territory proposed to be annexed to CFD No. 2019-1. The City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit C. (d) Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 7:00 p.m. on March 3, 2021. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on the election day by voters. Once all qualified electors have voted, the City Clerk may close the election. (e) Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on March 3, 2021, or when all qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election. (f) Declaration of Results. The City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statement of the results of the special election as ascertained by the canvass of the returns. SECTION 10. Filing of Resolution and Map with City Clerk. The City Council hereby directs the City Clerk to file a copy of this resolution and the annexation map of the boundaries of CFD No. 2019-1 in her office. SECTION 11. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 12. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 13. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. 13.a Packet Pg. 587 Attachment: Attachment 1 - Resolution No. 2021-40 [Revision 2] (7091 : Community Facilities District No. 2019-1 (Maintenance Services): Resolution No. 2021-40 John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 13.a Packet Pg. 588 Attachment: Attachment 1 - Resolution No. 2021-40 [Revision 2] (7091 : Community Facilities District No. 2019-1 (Maintenance Services): Resolution No. 2021-40 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-40, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 13.a Packet Pg. 589 Attachment: Attachment 1 - Resolution No. 2021-40 [Revision 2] (7091 : Community Facilities District No. 2019-1 (Maintenance Services): EXHIBIT A DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED The City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services) (the “CFD No. 2019-1”) Annexation No. 7 is currently comprised of one parcel, located within the City boundaries. The property is identified by the following San Bernardino County Assessor's Parcel Numbers (APN). APN Owner Name 0281-161-48 ICO Fund VI, LLC 13.b Packet Pg. 590 Attachment: Attachment 2 - Resolution No. 2021-40 - Exhibit A Description of Territory (7091 : Community Facilities District No. 2019-1 City of San Bernardino 1 Community Facilities District No. 2019‐1 (Maintenance Services) EXHIBIT B RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES) OF THE CITY OF SAN BERNARDINO A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2019‐1 (Maintenance Services) (the “CFD No. 2019‐1” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2019, in an amount determined by the City Council of the City of San Bernardino, acting in its capacity as the legislative body of CFD No. 2019‐1, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2019‐1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein. A.DEFINITIONS “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator. “Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2019‐1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2019‐1, or any designee thereof associated with fulfilling the CFD No. 2019‐1 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2019‐1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees including payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2019‐1 for any other administrative purposes of CFD No. 2019‐1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager of the City of San Bernardino, or his or her designee. “Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the March 1 preceding the Fiscal Year in which the Special Tax is being levied, and that have not been issued a building permit on or prior to the March 1 preceding the Fiscal year in which the special tax is being levied. “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of San Bernardino. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number. “Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County. 13.c Packet Pg. 591 Attachment: Attachment 3 - Resolution No. 2021-40 - Exhibit B Rate and Method of Apportionment (7091 : Community Facilities District No. City of San Bernardino 2 Community Facilities District No. 2019‐1 (Maintenance Services) “Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction building permit issued for construction of a building of Non‐Residential Property and any Building Square Footage subsequently added to a building of such Taxable Property after issuance of a building permit for expansion or renovation of such building. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31. “CFD” or “CFD No. 2019‐1” means the City of San Bernardino Community Facilities District No. 2019‐ 1 (Maintenance Services). “City” means the City of San Bernardino. “Contingent Special Tax B Requirement” means that amount required in any Fiscal Year, if the POA is unable to maintain the Service(s) to: (i) pay the costs of Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Services as determined by the Administrator; less a credit for funds available to reduce the annual Special Tax B (Contingent) levy as determined by the Administrator. “County” means the County of San Bernardino. “Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. “Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G. “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision. “Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th. “Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of March 1 preceding the Fiscal Year in which the Special Tax is being levied. “Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable. “Maximum Special Tax A” means the Maximum Special Tax A, as determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property within CFD No. 2019‐1. 13.c Packet Pg. 592 Attachment: Attachment 3 - Resolution No. 2021-40 - Exhibit B Rate and Method of Apportionment (7091 : Community Facilities District No. City of San Bernardino 3 Community Facilities District No. 2019‐1 (Maintenance Services) “Maximum Special Tax B (Contingent)” means the Maximum Special Tax B (Contingent), as determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property within CFD No. 2019‐1. “Multi‐Family Residential Property” means any Assessor’s Parcel of residential property that consists of a building or buildings comprised of attached Residential Units sharing at least one common wall with another unit. “Non‐Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a building permit(s) was issued for a non‐residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non‐Residential Property. “Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain landscaping within a Tax Zone. “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property with the same Tax Zone, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property with the same Tax Zone, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property with the same Tax Zone. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. “Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Service(s)” means services permitted under the Mello‐Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2019‐1 as set forth in the documents adopted by the City Council at the time the CFD was formed. “Single Family Residential Property” means any residential property other than Multi‐Family Residential Property on an Assessor’s Parcel. “Special Tax(es)” means the Special Tax A and/or Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property. “Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement. "Special Tax A Requirement" means for each Tax Zone, that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs for such Tax Zone of CFD No. 2019‐1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax A Requirement include funds for Bonds. 13.c Packet Pg. 593 Attachment: Attachment 3 - Resolution No. 2021-40 - Exhibit B Rate and Method of Apportionment (7091 : Community Facilities District No. City of San Bernardino 4 Community Facilities District No. 2019‐1 (Maintenance Services) “Special Tax B (Contingent)” means the Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Contingent Special Tax B Requirement, if required. "Taxable Property" means all Assessor’s Parcels within CFD No. 2019‐1, which are not Exempt Property. “Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax. Appendix C identifies the Tax Zone in CFD No. 2019‐1 at formation; additional Tax Zones may be created when property is annexed into the CFD. "Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1. "Tract(s)" means an area of land; i) within a subdivision identified by a particular tract number on a Final Map, ii) identified within a Parcel Map; or iii) identified within lot line adjustment approved for subdivision. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property. B. ASSIGNMENT TO LAND USE CATEGORIES For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2019‐1 shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sections C and D below. Assessor’s Parcels of Developed Property and Approved Property shall be classified as either Residential Property or Non‐Residential Property. Residential Property shall be further classified as Single Family Residential Property or Multi‐Family Residential Property and the number of Residential Units shall be determined by the Administrator. C. MAXIMUM SPECIAL TAX RATES For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the building permit(s) issued or Final Map as determined by the Administrator. For Parcels of undeveloped property zoned for development of single family attached or multi‐family units, the number of Residential Units shall be determined by referencing the condominium plan, apartment plan, site plan or other development plan, or by assigning the maximum allowable units permitted based on the underlying zoning for the Parcel. Once a single family attached or multi‐family building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax A levied against the Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential Unit identified for the Tract below or as included in Appendix A as each Annexation occurs. For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non‐Residential Property, all such Assessor’s 13.c Packet Pg. 594 Attachment: Attachment 3 - Resolution No. 2021-40 - Exhibit B Rate and Method of Apportionment (7091 : Community Facilities District No. City of San Bernardino 5 Community Facilities District No. 2019‐1 (Maintenance Services) Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual number of Building Square Footage or Acres for the Assessor’s Parcels, the Special Tax A levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax per Taxable Unit identified for the Tax Zone below or as included in Appendix A as each Annexation occurs. 1. Special Tax A a. Developed Property (i) Maximum Special Tax A The Maximum Special Tax A for each Assessor’s Parcel of Developed Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax A for Developed Property for Fiscal Year 2019‐2020 within Tax Zone 1 is identified in Table 1 below: TABLE 1 MAXIMUM SPECIAL TAX A RATES DEVELOPED PROPERTY Tax Zone Tract Land Use Category Taxable Unit Maximum Special Tax A 1 TR 17170 Single Family Residential Property RU $961 (ii) Increase in the Maximum Special Tax A On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final. b. Approved Property The Maximum Special Tax A for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Approved property Fiscal Year 2019‐20 within Tax Zone 1 is identified in Table 2 below: 13.c Packet Pg. 595 Attachment: Attachment 3 - Resolution No. 2021-40 - Exhibit B Rate and Method of Apportionment (7091 : Community Facilities District No. City of San Bernardino 6 Community Facilities District No. 2019‐1 (Maintenance Services) TABLE 2 MAXIMUM SPECIAL TAX A RATES APPROVED PROPERTY Tax Zone Tract Land Use Category Taxable Unit Maximum Special Tax A 1 TR 17170 Single Family Residential RU $961 On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. c. Undeveloped Property The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Undeveloped Property for Fiscal Year 2019‐20 within Tax Zone 1 is identified in Table 3 below: TABLE 3 MAXIMUM SPECIAL TAX A RATES UNDEVELOPED PROPERTY Tax Zone Tracts Taxable Unit Maximum Special Tax A 1 TR 17170 Acre $4,338 On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. 2. Special Tax B (Contingent) The City Council shall levy Special Tax B (Contingent) only in the event the POA defaults in its bligation to maintain the Contingent Services, which default shall be deemed to have occurred, as determined by the Administrator, in each of the following circumstances: (a) The POA files for bankruptcy; (b) The POA is dissolved; (c) The POA ceases to levy annual assessments for the Contingent Services; or (d) The POA fails to provide the Contingent Services at the same level as the City provides similar services and maintains similar improvements throughout the City and within ninety (90) days after written notice from the City, or such longer period permitted by the City Manager, fails to remedy the deficiency to the reasonable satisfaction of the City Council. a. Developed Property (i) Maximum Special Tax B (Contingent) 13.c Packet Pg. 596 Attachment: Attachment 3 - Resolution No. 2021-40 - Exhibit B Rate and Method of Apportionment (7091 : Community Facilities District No. City of San Bernardino 7 Community Facilities District No. 2019‐1 (Maintenance Services) The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 4 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for each Tax Zones annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20 within Tax Zone 1 is identified in Table 4 below: TABLE 4 MAXIMUM SPECIAL TAX B (CONTINGENT) RATES DEVELOPED PROPERTY Tax Zone Tract Land Use Category Taxable Unit Maximum Special Tax B (Contingent) 1 TR 17170 Single Family Residential Property RU $0 (ii) Increase in the Maximum Special Tax B (Contingent) On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final. b. Approved Property The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 5 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20 within the Tax Zone is identified in Table 5 below: TABLE 5 MAXIMUM SPECIAL TAX B (CONTINGENT) RATES APPROVED PROPERTY Tax Zone Tract Land Use Category Taxable Unit Maximum Special Tax B (Contingent) 1 TR 17170 Single Family Residential Property RU $0 On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for 13.c Packet Pg. 597 Attachment: Attachment 3 - Resolution No. 2021-40 - Exhibit B Rate and Method of Apportionment (7091 : Community Facilities District No. City of San Bernardino 8 Community Facilities District No. 2019‐1 (Maintenance Services) Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. c. Undeveloped Property The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 6 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20 within the Tax Zone is identified in Table 6 below: TABLE 6 MAXIMUM SPECIAL TAX B (CONTINGENT) RATES UNDEVELOPED PROPERTY Tax Zone Tracts Taxable Unit Maximum Special Tax B (Contingent) 1 TR 17170 Acre $0 On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX 1. Special Tax A Commencing with Fiscal Year 2019‐20 and for each following Fiscal Year, the Council shall determine the Special Tax A Requirement and shall levy the Special Tax A on all Assessor’s Parcels of Taxable Property until the aggregate amount of Special Tax A equals the Special Tax A Requirement for each Tax Zone. The Special Tax A shall be levied for each Fiscal Year as follows: First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed Property within each Tax Zone up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax A Requirement for such Tax Zone; Second: If additional moneys are needed to satisfy the Special Tax A Requirement for a Tax Zone after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax A for Approved Property; Third: If additional monies are needed to satisfy the Special Tax A Requirement for a Tax Zone after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum Special Tax A for Undeveloped Property. 2. Special Tax B (Contingent) Commencing with Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for each following Fiscal Year, the City Council shall determine the Contingent Special Tax B (Contingent) Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of 13.c Packet Pg. 598 Attachment: Attachment 3 - Resolution No. 2021-40 - Exhibit B Rate and Method of Apportionment (7091 : Community Facilities District No. City of San Bernardino 9 Community Facilities District No. 2019‐1 (Maintenance Services) Taxable Property within such Tax Zone until the aggregate amount of Special Tax B (Contingent) equals the Special Tax B ( Contingent) Requirement for such Tax Zone. The Special Tax B (Contingent) Shall be levied for each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property for a Tax Zone up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy the Contingent Special Tax B Requirement; Second: If additional moneys are needed to satisfy the Contingent Special Tax B Requirement after the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax B (Contingent) for Approved Property; Third: If additional monies are needed to satisfy the Contingent Special Tax B Requirement after the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum Special Tax B (Contingent) for Undeveloped Property. E. FUTURE ANNEXATIONS It is anticipated that additional properties will be annexed to CFD No. 2019‐1 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services. Based on this analysis, the property to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate for the Tax Zone when annexed and included in Appendix A. F. DURATION OF SPECIAL TAX For each Fiscal Year, the Special Tax A shall be levied as long as the Services are being provided. For each Fiscal Year, the Special Tax B (Contingent) shall be levied as long as the Contingent Services are being provided. G. EXEMPTIONS The City shall classify as Exempt Property within CFD No. 2019‐1, any Assessor’s Parcels; (i) which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) which are privately owned but are encumbered by or restricted solely for public uses; or (iv) which is in use in the performance of a public function as determined by the Administrator. H. APPEALS Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative(s) of CFD No. 2019‐1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s). 13.c Packet Pg. 599 Attachment: Attachment 3 - Resolution No. 2021-40 - Exhibit B Rate and Method of Apportionment (7091 : Community Facilities District No. City of San Bernardino 10 Community Facilities District No. 2019‐1 (Maintenance Services) I. MANNER OF COLLECTION The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2019‐1 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations. 13.c Packet Pg. 600 Attachment: Attachment 3 - Resolution No. 2021-40 - Exhibit B Rate and Method of Apportionment (7091 : Community Facilities District No. City of San Bernardino 11 Community Facilities District No. 2019‐1 (Maintenance Services) APPENDIX A CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES) COST ESTIMATE Special Tax A Services ‐ The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2021‐22. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2019‐1. TAX ZONE 8 TR 20293 Item Description Estimated Cost 1 Landscaping $2,042 2 Lighting $300 3 Streets $1,450 4 Parks $12,350 5 Graffiti $530 6 Reserves $245 7 Admin $1,667 Total $18,584 Special Tax B Contingent Services – The estimate in the table below breaks down the costs of providing one year’s contingent maintenance services for Fiscal Year 2021‐22. If necessary, these services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2019‐1 Tax Zone 8. TAX ZONE 8 (CONTINGENT SERVICES) TR 20293 Item Description Estimated Cost 1 Drainage $1,485 2 Reserves $149 3 Admin $500 Total $2,134 TAX ZONE 8 FY 2021‐22 MAXIMUM SPECIAL TAX RATES DEVELOPED PROPERTY AND APPROVED PROPERTY Land Use Category Taxable Unit Maximum Special Tax A Maximum Special Tax B Residential Property RU $194 $334 13.c Packet Pg. 601 Attachment: Attachment 3 - Resolution No. 2021-40 - Exhibit B Rate and Method of Apportionment (7091 : Community Facilities District No. City of San Bernardino 12 Community Facilities District No. 2019‐1 (Maintenance Services) TAX ZONE 8 FY 2021‐22 MAXIMUM SPECIAL TAX RATES UNDEVELOPED PROPERTY Taxable Unit Maximum Special Tax A Maximum Special Tax B Acre $2,913 $334 13.c Packet Pg. 602 Attachment: Attachment 3 - Resolution No. 2021-40 - Exhibit B Rate and Method of Apportionment (7091 : Community Facilities District No. City of San Bernardino 13 Community Facilities District No. 2019‐1 (Maintenance Services) TAX ZONE SUMMARY Annexation Tax Zone Tract APN Fiscal Year Maximum Special Tax A Maximum Special Tax B Subdivider Original 1 17170 2019‐20 $961 / RU $0 / RU Santiago Communities, Inc. 1 2 17329 2019‐20 $473 / RU $0 / RU JEC Enterprises, Inc. 2 3 PM 19814 2020‐21 $608 / Acre $0 / Acre GWS #4 Development, LLC 3 4 0266‐041‐39 2019‐20 $1,136 / Acre $0 / Acre Devore Storage Facility, LLC 4 5 TR 20006 2020‐21 $344 / RU $57 / RU TH Rancho Palma, LLC 5 6 PM 19701 2020‐21 $1,895 / Acre $528 / Acre Strata Palma, LLC 6 7 PM 20112 2020‐21 $3,197 / Acre $0 / Acre San Bernardino Medical Center LLC 7 8 TR 20293 2021‐22 $194 / RU $22 / RU ICO Fund VI, LLC ESCALATION OF MAXIMUM SPECIAL TAXES On each July 1, commencing on July 1, 2020 the Maximum Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. 13.c Packet Pg. 603 Attachment: Attachment 3 - Resolution No. 2021-40 - Exhibit B Rate and Method of Apportionment (7091 : Community Facilities District No. City of San Bernardino 14 Community Facilities District No. 2019‐1 (Maintenance Services) APPENDIX B CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES) DESCRIPTION OF AUTHORIZED SERVICES The services which may be funded with proceeds of the special tax of CFD No. 2019‐1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right‐of‐ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following: (a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right‐of‐way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2019‐1; as well as local roads within residential subdivisions located within CFD No. 2019‐1; and any portions adjacent to the properties within CFD No. 2019‐1; and In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment. The above services shall be limited to those provided within the boundaries of CFD No. 2019‐1 or for the benefit of the properties within the boundaries of CFD No. 2019‐1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2019‐1 only to the extent that they are in addition to those provided in the territory of CFD No. 2019‐1 before CFD No. 2019‐1 was created. 13.c Packet Pg. 604 Attachment: Attachment 3 - Resolution No. 2021-40 - Exhibit B Rate and Method of Apportionment (7091 : Community Facilities District No. City of San Bernardino 15 Community Facilities District No. 2019‐1 (Maintenance Services) APPENDIX C CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES) PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA BOUNDARIES 13.c Packet Pg. 605 Attachment: Attachment 3 - Resolution No. 2021-40 - Exhibit B Rate and Method of Apportionment (7091 : Community Facilities District No. 13.cPacket Pg. 606Attachment: Attachment 3 - Resolution No. 2021-40 - Exhibit B Rate and Method of Apportionment (7091 : 13.cPacket Pg. 607Attachment: Attachment 3 - Resolution No. 2021-40 - Exhibit B Rate and Method of Apportionment (7091 : EXHIBIT C CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 7 (March 3, 2021) This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2019-1 (Maintenance Services) (“CFD No. 2019-1”) of the City of San Bernardino: Name of Landowner Number of Acres Owned Total Votes ICO Fund VI, LLC 9.66 10 According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of San Bernardino (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax. This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to form the CFD No. 2019-1, City of San Bernardino, County of San Bernardino, State of California. Please advise the City Clerk, at (909) 384-5002 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows: Mail Delivery: If by mail, place ballot in the return envelope provided, and mail no later than February 17, 2021, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted. Personal Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on March 3, 2021, at the Clerk’s office at 201 N. “E” Street, Bldg A, City of San Bernardino, CA 92401. However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on March 3, 2021. Very truly yours, Genoveva Rocha, CMC, City Clerk 13.d Packet Pg. 608 Attachment: Attachment 4 - Resolution No. 2021-40 - Exhibit C Special Election Ballot (7091 : Community Facilities District No. 2019-1 TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE. OFFICIAL SPECIAL TAX BALLOT Name & Address of Property Owner: Assessor’s Parcel Number(s): ICO Fund VI, LLC Attn: Joe Oftelie 3090 Pullman Street Costa Mesa, CA 92626 0281-161-48 CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT SPECIAL TAX BALLOT MEASURE MARK “YES” OR “NO” WITH AN “X”: Shall the City Council of the City of San Bernardino be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex territory to Community Facilities District No. 2019-1 (Maintenance Services) adopted by the City Council on January 20, 2021 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 7 of Community Facilities District No. 2019-1 (Maintenance Services) City of San Bernardino” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2019-1 (Maintenance Services) in the amount of special taxes collected? YES _________ NO _________ Certification for Special Election Ballot The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__. ICO Fund VI, LLC By: Joe Oftelie VP of Community Development Signature Print Name Title 13.d Packet Pg. 609 Attachment: Attachment 4 - Resolution No. 2021-40 - Exhibit C Special Election Ballot (7091 : Community Facilities District No. 2019-1 RESOLUTION NO. 2021-41 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, CALLING AN ELECTION TO SUBMIT TO THE QUALIFIED ELECTORS THE QUESTION OF LEVYING A SPECIAL TAX WITHIN THE AREA PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 7) WHEREAS, the Mayor and City Council (the “City Council”) of the City of San Bernardino (the “City”), adopted its Resolution No. 2019-081, (the “Resolution of Intention”) (i) declaring its intention to establish Community Facilities District No. 2019-1 (Maintenance Services) (the “CFD No. 2019-1”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), commencing with Section 53311 of the California Government Code (the “Government Code”), (ii) proposing to levy a special taxes within CFD No. 2019 -1 pursuant to the terms of the Act to fund the cost of providing maintenance services (the “Services”) described in Exhibit B of the Resolution of Intention, and WHEREAS, the City Council set a public hearing for July 17, 2019 after which the Council adopted Resolution No. 2019-178 forming the CFD No. 2019-1 and calling a special election at which the questions of levying a special tax and establishing an appropriations limit with respect to the CFD No. 2019-1 were submitted to the qualified electors within the CFD No. 2019-1; and WHEREAS, on July 17, 2019, the City Council adopted Resolution No. 2019-179 declaring the results of the special election and finding that more than two-thirds (2/3) of all votes cast at the special election were cast in favor of the proposition presented, and such proposition passed; and WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code as amended (the "Act"), to annex territory into an existing community facilities district by complying with the procedures set forth in said Article 3.5; and WHEREAS, the City Council on January 20, 2021 duly adopted Resolution No. 2021-17 (the “Resolution of Intention”) declaring its intention to annex certain territory to CFD No. 2019- 1 (Maintenance Services) and to levy a special tax within that territory to pay for certain services and setting a time and place for the public hearing on the proposed annexation for March 3, 2021; and WHEREAS, the territory proposed to be annexed is identified in a map entitled "Annexation Map No. 7 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on February 3, 2021, in Book 89 of Maps of Assessment and Community Facilities Districts at Page 48, in the office of the San Bernardino County Recorder; and 13.e Packet Pg. 610 Attachment: Attachment 5 - Resolution No. 2021-41 [Revision 2] (7091 : Community Facilities District No. 2019-1 (Maintenance Services): Resolution No. 2021-41 WHEREAS, pursuant to the Act and the Resolution of Intention, a noticed public hearing was convened by the City Council on March 3, 2021, not earlier than the hour of 7:00 p.m. at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92418, relative to the proposed annexation of said territory to CFD No. 2019-1. At the hearing, the testimony of all interested persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the March 3, 2021 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of San Bernardino (www.sbcity.org), and outside of the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92418. A copy of the Agenda will be made available upon request to the San Bernardino City Clerk's office at 909-384-5002; and WHEREAS, written protests have not been filed by fifty percent (50%) or more of the registered voters residing within the CFD No 2019-1, or by fifty percent (50%) or more of the registered voters residing within the territory to be annexed, or by the owners of one-half (1/2) or more of the area within the CFD No. 2019-1, or by the owners of one-half (1/2) or more of the territory to be annexed; and WHEREAS, the City Council has determined that there are fewer than twelve registered voters residing in the territory proposed to be annexed to the CFD No. 2019-1 and that the qualified electors in such territory are the landowners; and WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to call an election to authorize the annexation of territory to the CFD No. 2019-1 and the levying of a special tax as described in Exhibit A hereto; and WHEREAS, the City Council has received a written instrument from each landowner in the territory proposed to be annexed to the CFD No. 2019-1 consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and WHEREAS, the City Clerk has concurred in the election date set forth herein. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Recitals. The foregoing recitals are true and correct. SECTION 2. Conformation of Finding in Resolution of Intention. The City Council reconfirms all of its findings and determinations as set forth in the Resolution of Intention. SECTION 3. Findings Regarding Protests. The City Council finds and determines that written protests to the proposed annexation of territory to the CFD No. 2019-1 and the levy of 13.e Packet Pg. 611 Attachment: Attachment 5 - Resolution No. 2021-41 [Revision 2] (7091 : Community Facilities District No. 2019-1 (Maintenance Services): Resolution No. 2021-41 the special tax within such territory are insufficient in number and in amount under the Act, and the City Council hereby further orders and determines that all such protests are hereby overruled. SECTION 4. Findings Regarding Prior Proceedings. The City Council finds and determines that all prior proceedings had and taken by the City Council with respect to the annexation of territory to CFD No. 2019-1 are valid and in conformity with the requirements of the Act. SECTION 5. Levy of Special Tax. As stated in the Resolution of Intention, except where funds are otherwise available, subject to the approval of the qualified electors of territory proposed to be annexed to CFD No. 2019-1, a special tax sufficient to pay the costs of the Services (including incidental expenses as described in the Resolution of Intention), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2019-1, will be levied annually in CFD No. 2019-1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit B hereto. SECTION 6. Apportionment of Tax. The special tax as apportioned to each parcel is based on the cost of making the Services available to each parcel, or other reasonable basis, and is not based on or upon the ownership of real property. SECTION 7. Tax Roll Preparation. The office of the Public Works Director, 201 North “E” Street, San Bernardino, California 92418, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax levies pursuant to Government Code section 53340.2. The Public Works Director may cause these functions to be performed by his or her deputies, assistants, or other designated agents. SECTION 8. Accountability Measures. Pursuant to Section 50075.1 of the California Government Code, the City shall create a separate account int o which tax proceeds will be deposited; and the Public Works Director annually shall file a report with the City Council that will state (a) the amount of funds collected and expended and (b) the status of the Services financed in CFD No. 2019-1. SECTION 9. Special Election; Voting Procedures. The City Council hereby submits the questions of levying the special tax within the territory proposed to be annexed to the qualified electors, in accordance with and subject to the Act. The special election shall be held on March 3, 2021, and shall be conducted as follows: (a) Qualified Electors. The City Council hereby determines that the Services are necessary to meet increased demands placed upon the City as a result of development occurring within the boundaries of CFD No. 2019-1. Because fewer than twelve registered voters resided within the territory proposed to be annexed to CFD No. 2019-1 on January 26, 2021 (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to CFD No. 2019-1), the qualified electors shall be the landowners within territory proposed to be annexed, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to CFD No. 2019-1. 13.e Packet Pg. 612 Attachment: Attachment 5 - Resolution No. 2021-41 [Revision 2] (7091 : Community Facilities District No. 2019-1 (Maintenance Services): Resolution No. 2021-41 (b) Consolidation of Elections; Combination of Propositions on Ballot. The election on the question of levying the special tax and establishing an appropriations li mit for CFD No. 2019-1 shall be consolidated, and the two proportions shall be combined into a single ballot proposition for submission to the voters, as authorized by Government Code Section 53353.5. (c) Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The City Council hereby ratifies the City Clerk’s delivery of a ballot to each landowner within the territory proposed to be annexed to CFD No. 2019-1. The City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit C. (d) Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 7:00 p.m. on March 3, 2021. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on the election day by voters. Once all qualified electors have voted, the City Clerk may close the election. (e) Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on March 3, 2021, or when all qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election. (f) Declaration of Results. The City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statement of the results of the special election as ascertained by the canvass of the returns. SECTION 10. Filing of Resolution and Map with City Clerk. The City Council hereby directs the City Clerk to file a copy of this resolution and the annexation map of the boundaries of CFD No. 2019-1 in her office. SECTION 11. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 12. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 13. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. 13.e Packet Pg. 613 Attachment: Attachment 5 - Resolution No. 2021-41 [Revision 2] (7091 : Community Facilities District No. 2019-1 (Maintenance Services): Resolution No. 2021-41 John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 13.e Packet Pg. 614 Attachment: Attachment 5 - Resolution No. 2021-41 [Revision 2] (7091 : Community Facilities District No. 2019-1 (Maintenance Services): Resolution No. 2021-41 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-41, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 13.e Packet Pg. 615 Attachment: Attachment 5 - Resolution No. 2021-41 [Revision 2] (7091 : Community Facilities District No. 2019-1 (Maintenance Services): EXHIBIT A CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 7 CERTIFICATE OF ELECTION RESULTS I, the undersigned, being the City Clerk or the Acting City Clerk, as the case may be, hereby certify: In connection with the special mailed-ballot election called by the City Council (the “City Council”) of the City of San Bernardino (the “City”) on this same date in the proceedings of the City Council for the annexation of territory to the above-entitled community facilities district, I personally received (a) a signed and dated waiver and consent form and (b) a signed, dated and marked election ballot(s) on behalf of the owner(s) listed below, the entity named as the sole landowner of the land within the boundary of the above-entitled community facilities district in the Certificate Regarding Registered Voters and Landowners, date January 26, 2021, and on file in the office of the City Clerk of the City in connection with the City Council actions on that date. Copies of the completed waiver and consent form and the completed ballot received by me and on file in my office are attached hereto. Following such receipt, I have personally, and in the presence of all persons present, reviewed the ballot to confirm that it is properly marked and signed, and I hereby certify the result of that count to be that the ballot was cast in favor of the measure. Based upon the foregoing, all votes that were cast having been cast “Yes”, in favor of the ballot measure, the measure has therefore passed. Landowner Qualified Landowner Votes Votes Cast YES NO ICO Fund VI, LLC 9.66 10 I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 2021. Genoveva Rocha, CMC City Clerk City of San Bernardino By: (Attach completed copies of Waiver/Consent and Ballot) 13.f Packet Pg. 616 Attachment: Attachment 6 - Resolution 2021-41 - Exhibit A Certificate of Election Result (7091 : Community Facilities District No. 2019-1 ORDINANCE NO. MC-1554 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING ORDINANCE NO. MC-1522 AND LEVYING SPECIAL TAXES TO BE COLLECTED DURING FISCAL YEAR 2021-2022 TO PAY THE ANNUAL COSTS OF THE MAINTENANCE AND SERVICING OF LANDSCAPING, LIGHTING, WATER QUALITY IMPROVEMENTS, GRAFFITI, STREETS, STREET SWEEPING, PARKS AND TRAIL MAINTENANCE, A RESERVE FUND FOR CAPITAL REPLACEMENT, AND ADMINISTRATIVE EXPENSES WITH RESPECT TO CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) WHEREAS, the Mayor and City Council (the "City Council") of the City of San Bernardino (the "City") has heretofore adopted Resolution No. 2019-81, stating that a community facilities district to be known as "City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services), County of San Bernardino, State of California" (the "Community Facilities District"), is proposed to be established under the provisions of Chapter 2,5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982" (the "Act"), and fixing the time and place for a public hearing on the formation of the Community Facilities District; and WHEREAS, notice was published and mailed to the owners of the property in the Community Facilities District as required by law relative to the intention of the City Council to establish the Community Facilities District and the levy of the special taxes therein to provide certain services, and of the time and place of said public hearing; and WHEREAS, on January 20, 2021, at the time and place specified in said published and mailed notice, the City Council opened and held a public hearing as required by law relative to the formation of the Community Facilities District, the levy of the special taxes therein and the provision of services by the Community Facilities District; and WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District, the levy of the special taxes and the provision of services therein were heard, and a full and fair hearing was held; and WHEREAS, subsequent to said hearing, the City Council adopted resolutions entitled "Resolution of the City Council of the City of San Bernardino Establishing Calling An Election for the Purpose of Submitting the Question of the Levy of the Proposed Special Tax to the Qualified Electors of the Proposed Community Facilities District; Authorizing the Levy of Special Taxes; and Establishing the Appropriations Limit for the Proposed Community Facilities District" (the "Resolution of Formation") which resolution established the Community Facilities District, authorized the levy of a special tax within the District, and called an election within the 13.g Packet Pg. 617 Attachment: Attachment 7 - Ordinance No. MC-1554 [Revision 1] (7091 : Community Facilities District No. 2019-1 (Maintenance Services): Ordinance MC-1554 2 District on the proposition of levying a special tax, and establishing an appropriation s limit within the District; and WHEREAS, an election was held within the Community Facilities District in which the sole eligible landowner elector approved said propositions by more than the two-thirds vote required by the Act. THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1. Findings. It is necessary that the City Council of the City of San Bernardino levy special taxes pursuant to Sections 53340 of the Government Code to provide and finance the costs of certain types of services, and related costs within the Community Facilities District, including (i) the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, and park maintenance, (ii) a reserve fund for capital replacement, and (iii) administrative expenses, all as more completely described in Exhibit "A" to Resolution No. 2019-81, attached hereto and by this reference made a part hereof. SECTION 2. Levy of Special Taxes. Special taxes shall be and are hereby levied for the Fiscal Year 2021-2022, and each Fiscal Year thereafter, on all parcels of real property within the District which are subject to taxation, which are identified in Exhibit "B" attached hereto. Pursuant to said Section 53340, such special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and Lien priority in case of delinquency as is provided for ad valorem taxes. SECTION 3. Transmittal to County. The City Clerk shall immediately following adoption of this ordinance transmit a copy hereof to the Board of Supervisors and the County Auditor of the County of San Bernardino together with a request that the special taxes as levied hereby be collected on the tax bills for the parcels identified in Exhibit "B" hereto, along with the ordinary ad valorem property taxes to be levied on and collected from the owners of said parcels. SECTION 4. Authorization to Publish Ordinance. City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California. SECTION 5. Effective Date. This ordinance shall become effective thirty (30) days after its adoption. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ____ day of _______, 2021. John Valdivia, Mayor City of San Bernardino 13.g Packet Pg. 618 Attachment: Attachment 7 - Ordinance No. MC-1554 [Revision 1] (7091 : Community Facilities District No. 2019-1 (Maintenance Services): Ordinance MC-1554 3 Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 13.g Packet Pg. 619 Attachment: Attachment 7 - Ordinance No. MC-1554 [Revision 1] (7091 : Community Facilities District No. 2019-1 (Maintenance Services): Ordinance MC-1554 4 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Ordinance No. MC-1554, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the ____ day of ______, 2021. Ordinance No. MC-1554 was approved, passed and adopted at a regular meeting held the ____ day of ______, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of _____, 2021. Genoveva Rocha, CMC, City Clerk 13.g Packet Pg. 620 Attachment: Attachment 7 - Ordinance No. MC-1554 [Revision 1] (7091 : Community Facilities District No. 2019-1 (Maintenance Services): EXHIBIT A DESCRIPTION OF AUTHORIZED SERVICES The services which may be funded with proceeds of the special tax of CFD No. 2019-1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following: (a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2019-1; as well as local roads within residential subdivisions located within CFD No. 2019-1; and any portions adjacent to the properties within CFD No. 2019-1. In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in Exhibit B to this resolution of intention. The above services shall be limited to those provided within the boundaries of CFD No. 2019-1 or for the benefit of the properties within the boundaries of CFD No. 2019-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2019-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2019-1 before CFD No. 2019-1 was created. 13.h Packet Pg. 621 Attachment: Attachment 8 - Ordinance MC-1554 - Exhibit A Description of Services (7091 : Community Facilities District No. 2019-1 EXHIBIT B COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) SPECIAL TAX FISCAL YEAR 2021-22 (Effective as of March 3, 2021) ASSESSOR'S PARCEL NUMBERS Annexation Owner Assessor's Parcel Numbers Original Formation Cauffman Family Trust 4/20/98 0142-041-43 Cauffman Family Trust 5/4/11 0142-041-46 1 17329, LLC 0348-111-52, 0261-031-10, -11, and 0261-062-11 thru -14 2 GWS #4 Development, LLC 0141-431-24 3 Devore Storage Facility, LLC 0266-041-39 4 TH Rancho Palma, LLC 0261-181-16, -17 5 Strata Palma, LLC 0261-182-41 6 San Bernardino Medical Center, LLC 0147-114-01 7 ICO Fund VI, LLC 0281-161-48 13.i Packet Pg. 622 Attachment: Attachment 9 - Ordinance MC-1554 - Exhibit B Parcel List (7091 : Community Facilities District No. 2019-1 (Maintenance Services): 13.j Packet Pg. 623 Attachment: Attachment 10 - Petition (7091 : Community Facilities District No. 2019-1 (Maintenance Services): Annexation No. 7 (Ward 3)) 13.j Packet Pg. 624 Attachment: Attachment 10 - Petition (7091 : Community Facilities District No. 2019-1 (Maintenance Services): Annexation No. 7 (Ward 3)) DEVELOPMENT SERVICES~PUBLIC WORKS/ENGINEERINGCITY OF SAN BERNARDINOFORFROMTRACT No. 20293TENTATIVE TRACT MAPFERREE STREET & LAURELWOOD DRIVE4____ENGINEER'SENGINEER'SSEALINFORMATION0SCALE: 1" = 50'25 50 100EXHIBIT A13.jPacket Pg. 625Attachment: Attachment 10 - Petition (7091 : Community Facilities District No. 2019-1 (Maintenance EXHIBIT B 13.j Packet Pg. 626 Attachment: Attachment 10 - Petition (7091 : Community Facilities District No. 2019-1 (Maintenance Services): Annexation No. 7 (Ward 3)) PROJECT MAP CFD NO. 2019-1 (MAINTENANCE SERVICES) TAX ZONE 8 13.kPacket Pg. 627Attachment: Attachment 11 - Project Location Map (7091 : Community Facilities District No. 2019-1 Public Hearings Ferree Street Development APN: 0281-161-48 (TR 20293) CFD No. 2018-1 (Safety Services) Annexation No. 3 CFD No. 2019-1 (Maintenance Services) Annexation No. 7 CFD No. 2021-1 (Ferree Street) Formation 1 13.l Packet Pg. 628 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearings on Ferree Residential Project Background •The proposed residential project includes one parcel APN 0281-161-48 within TR 20293. This proposed development is to include 96 detached single-family residential lots. •The Property Owner, ICO Fund VI, LLC, has requested the City assist them in: •Annexing territory into CFD No. 2018-1 (Safety Services) to mitigate the impacts to Public Safety services; and •Annexing territory into CFD No. 2019-1 (Maintenance Services) to cover the costs associated with public maintenance services; and •Formation of CFD No. 2021-1 (Ferree Street) to finance certain public improvements 2 13.l Packet Pg. 629 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearings on Ferree Residential Project Background •Proposed timeline for CFD annexations/formation: •Project Approval for TR 20293 •Planning Commission – September 22, 2020 •City Council – November 4, 2020 •CFD Action Items •City Council Meetings – Adopt Resolution of Intentions (ROI) – 1/20/2021 •Public Hearing – Hold Public Hearing and Resolutions, conduct election, and introduce 1st Reading of Ordinances – 3/3/2021 •Each Public Hearing has to be held separately •2nd Reading of Ordinance – 3/17/2021 3 13.l Packet Pg. 630 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Project Location 4 13.l Packet Pg. 631 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Tract Map No. 20293 5 13.l Packet Pg. 632 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Maintenance Exhibit 6 13.l Packet Pg. 633 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearing on CFD 2018-1 (Safety Services) Annexation No. 3 7 13.l Packet Pg. 634 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearing on CFD 2018-1 Annexation No. 3 Recommended Action City Council initiate annexation of territory to City of San Bernardino Community Facilities District No. 2018-1 (Safety Services) ("CFD No. 2018-1" or "CFD") by taking the following actions: a. Hold public hearing, b. Adopt a Resolutioncalling the election, c. Hold a special landowner election and canvass the election, d. Adopt a Resolutiondeclaring results of special landowner election; 8 13.l Packet Pg. 635 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearing on CFD 2018-1 Annexation No. 3 Discussion •The Property Owner, ICO Fund VI, LLC, has requested the City assist them in annexing territory into CFD No. 2018-1 to cover the costs associated with Public Safety services. •The area proposed within Annexation No. 3 includes one parcel APN 0281-161-48 within TR 20293. This proposed development is to include 96 detached single-family residential lots. •On January 20, 2021 the City Council adopted Resolution No. 2021-6, a Resolution of Intention to annex these properties into CFD No. 2018-1 and hold a Public Hearing on March 3, 2021. The property owner consented to waiving certain time restriction and conduct the election the same night. 9 13.l Packet Pg. 636 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearing on CFD 2018-1 Annexation No. 3 Discussion (Cont.) •The proposed maximum annual tax of $385 per residential unit for Fiscal Year 2021-22. •The Special Tax is proposed to escalate each year after July 1, 2024 by 4%. •The services, which may be funded with proceeds of the special tax include: •Police protection services (including but not limited to criminal justice services) and paramedic services; and •City and County costs associated with the setting, levying and collection of the special tax, and in the administration of the District including the contract administration and operating reserves. 10 13.l Packet Pg. 637 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearing on CFD 2018-1 Annexation No. 3 Fiscal Impact •It is anticipated that at build-out the total Special Tax revenues to pay for public safety services will be approximately $36,960. All costs associated with the annexation is borne by the Developer. There is no fiscal impact to the City’s General Fund. 11 13.l Packet Pg. 638 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearing on CFD 2019-1 (Maintenance Services) Annexation No. 7 12 13.l Packet Pg. 639 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearing on CFD 2019-1 Annexation No. 7 Recommended Action 1. City Council initiate annexation of territory to City of San Bernardino Community FacilitiesDistrict No. 2019-1 (Maintenance Services) ("CFD No. 2019-1" or "CFD") by taking the followingactions: a. Hold public hearing, b. Adopt a Resolution calling the election, c. Hold a special landowner election and canvass the election, d. Adopt a Resolution declaring results of special landowner election; and 2. Upon approval of the preceding resolutions, Introduce an Ordinance amending Ordinance No.MC-1522 and levying and apportioning the special tax in CFD No. 2019-1 (as it now exists andwill exist in the future); and 3. Schedule the final reading and adoption of the Amended Ordinance for March 17, 2021. 13 13.l Packet Pg. 640 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearing on CFD 2019-1 Annexation No. 7 Discussion •The Property Owner, ICO Fund VI, LLC, has requested the City assist them in annexing territory into CFD No. 2019-1 to cover the costs associated with the maintenance of Public Improvements. •The area proposed within Annexation No. 7 includes one parcel APN 0281-161-48 within TR 20293. •On January 20, 2021 the City Council adopted Resolution No. 2021-17, a Resolution of Intention to annex these properties into CFD No. 2019-1 and hold a Public Hearing on March 3, 2021. The property owner consented to waiving certain time restriction and conduct the election the same night. 14 13.l Packet Pg. 641 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearing on CFD 2019-1 Annexation No. 7 Discussion (Cont.) •The proposed maximum annual tax of $216 per unit will be included in CFD No. 2019-1 as Tax Zone 8. •The maximum annual tax is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. 15 13.l Packet Pg. 642 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearing on CFD 2019-1 Annexation No. 7 Discussion (Cont.) •The services, which may be funded with proceeds of the special tax include: •All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way •Public lighting including street lights and traffic signals, •Maintenance of streets, including pavement management, and street sweeping, •Maintenance and operation of water quality improvements including storm drainage and flood protection facilities •In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds. 16 13.l Packet Pg. 643 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearing on CFD 2019-1 Annexation No. 7 Fiscal Impact •It is anticipated that at build-out the total Special Tax revenues to pay for maintenance costs will be approximately $20,717. All costs associated with the annexation is borne by the Developer. There is no fiscal impact to the City’s General Fund. 17 13.l Packet Pg. 644 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearing on Formation of CFD 2021-1 (Ferree Street) 18 13.l Packet Pg. 645 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearing on CFD 2021-1 Formation Recommended Action 1. City Council initiate formation of Community Facilities District No. 2021-1 (Ferree Street) (CFD No.2021-1) by taking the followingactions: a. Hold public hearing, b. Adopt a Resolution establishing CFD No. 2021-1 and the boundaries thereof and approvingFunding and Acquisition, c. Adopt a Resolution determining necessity to incur bonded indebtedness, c. Adopt a Resolution calling the election, d. Hold a special landowner election and canvass the election, e. Adopt a Resolution declaring results of special landowner election; and 2. Upon approval of the preceding resolutions, Introduce an Ordinance authorizing the levy of specialtaxes within CFD No. 2021-1; and 3. Schedule the final reading and adoption of the Ordinance for March 17, 2021. 19 13.l Packet Pg. 646 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearing on CFD 2021-1 Formation Discussion •On January 20, 2021 the Mayor and City Council approved Resolution No. 2021-4 and 2021-5 which initiated the formation of the CFD, approve the boundaries of the proposed CFD, describe the facilities proposed to be finance, proposed a rate and method of apportionment of special taxes and declared the necessity to issue bonds to finance the Facilities for CFD No. 2021-1. •The Property Owner, ICO Fund VI, LLC, has requested the City assist them in forming CFD No. 2021-1 to finance certain public improvements through the levy of a special tax and the issuance of bounds in an amount not to exceed $4,000,000. 20 13.l Packet Pg. 647 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearing on CFD 2021-1 Formation Discussion (Cont.) •The area proposed within CFD No. 2021-1 includes one parcel APN 0281-161-48 within TR 20293. This proposed development is to include 96 detached single-family residential lots. •As required by the ROI the proposed boundary map for CFD No. 2021-1 was recorded February 3, 2021 in Book 89, Page 51 Document No. 2021-0053175. 21 13.l Packet Pg. 648 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearing on CFD 2021-1 Formation Discussion (Cont.) •The CFD Public Hearing Report was prepared by Spicer Consulting Group and describes and analyzes the facilities to be finance by the CFD and the estimated costs of such facilities. •The anticipated issuance amount based on current rates would be approximately $3,100,000 which would cover a reserve fund, financing costs, and generate approximately $2,557,199 in net bond proceeds for facilities. •The proposed facilities, which may be funded with proceeds of the bonds include: •$1,010,460 – City Water District Improvements •$1,546,739 – City Development Impact Fees •In addition to the costs of the foregoing facilities, proceeds of the special tax may be expended to pay administrative costs. 22 13.l Packet Pg. 649 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearing on CFD 2021-1 Formation Discussion (Cont.) •The proposed development is proposing to build 96 detached residential units with home sizes ranging from 1,845 to 2,045 square feet. •The project is currently annexing into CFD 2018-1 (Public Safety) to cover police and ambulance services. •The project is also currently annexing into CFD 2019-1 (Maintenance Services) to cover landscaping, lighting, street sweeping and pavement management, drainage, parks and trails, and graffiti abatement service costs. •The total tax effective tax rate is estimated at 1.91% of projected home prices. This is within the 2% allowable tax rate limit in the City’s Financing Goals and Policies. •The estimated assigned annual tax rates range from $2,266 for home sizes less than 1,850 square feet to $2,433 for home sizes greater than 2,000 square feet. 23 13.l Packet Pg. 650 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearing on CFD 2021-1 Formation Discussion (Cont.) •Proposed timeline for facilities CFD formation: •City Council Meeting – Adopt Resolution of Intention (ROI) – 1/20/2021 •Public Hearing – Hold Public Hearing and Resolution, conduct election, and introduce 1 st Reading of Ordinance – 3/3/2021 •2nd Reading of Ordinance – 3/17/2021 •Bond Issuance would be requested by Developer after certain criteria has been met: •Development Threshold – Building Permits Issued •Individually Owned Threshold – Diversification of Ownership •Value-to-Lien Threshold – Exceeds 4:1 •Letter of Credit Secured – If necessary •An offering document would be prepared and presented to City Council prior to Bond Issuance 24 13.l Packet Pg. 651 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Public Hearing on CFD 2021-1 Formation Fiscal Impact •The Special Tax will be levied annually on taxable properties in CFD No. 2021-1 in accordance with the Rate and Method of Apportionment (RMA) to pay for the cost of facilities, debt service on bonds, and administration of the CFD. Any bonds issued by CFD No. 2021-1 are NOT obligations of the City and will be secured solely by the Special Taxes levied in CFD No. 2021-1. •All costs associated with the formation is borne by the Developer. The ROI included Section 8 to approve by resolution the ability to reimburse the developer for these costs if and when bonds are issued for the CFD. •There is no fiscal impact to the City’s General Fund 25 13.l Packet Pg. 652 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Questions? 26 13.l Packet Pg. 653 Attachment: Attachment 12 - PowerPoint Presentation (7091 : Community Facilities District No. 2019-1 Page 1 Public Hearing City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Barbara Whitehorn, Director of Finance Subject: Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a public hearing; 2. Adopt Resolution No. 2021-42 of the Mayor and City Council of the City of San Bernardino, California, establishing Community Facilities District No. 2021 -1 (Ferree Street) of the City of San Bernardino, County of San Bernardino, State of California, and the boundaries thereof and approving a Funding Agreemen t; 3. Adopt Resolution No. 2021-43 of the Mayor and City Council of the City of San Bernardino, California, determining the necessity to incur a bonded indebtedness for Community Facilities District No. 2021-1 (Ferree Street), submitting to the qualified electors of the Community Facilities District a proposition to authorize the levy of a special tax therein, to authorize such Community Facilities District to incur a bonded indebtedness secured by the levy of a special therein to finance certain types of public facilities and to establish an appropriations limit for such Community Facilities District and calling a special election for the Community Facilities District on a proposition for incurring such bonded indebtedness; 4. Adopt Resolution No. 2021-44 of the Mayor and City Council of the City of San Bernardino, California calling a special election and submitting to the voters of Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino propositions regarding the annual levy of special taxes within the Community Facilities District to pay principal of and interest on bonds thereof and to pay the costs of public facilities and establishing an appropriations limit therefor; 5. Adopt Resolution No. 2021-45 of the Mayor and City Council of the City of San Bernardino, California declaring the results of the consolidated special elections within Community Facilities District No. 2021-1 (Ferree Street); and 14 Packet Pg. 654 7132 Page 2 6. Conduct first reading of Ordinance No. MC-1555 of the Mayor and City Council of the City of San Bernardino, California, acting as the legislative body of Community Facilities District No. 2021-1 (Ferree Street), authorizing the levy of special taxes in such community facilities district. Background The City has received a petition from ICO Fund VI, LLC (the “Owner”), the owner and developer of APN No. 0281-161-48 (the “Property”) requesting the formation of the proposed community facilities district (“CFD”), encompassing the Property, to finance: a) acquisition, design, construction of local and regional traffic improvements, storm drain improvements, park, park improvements and open space, and sewer and water improvements; and b) the incidental expenses proposed to be incurred are: (i) the cost of planning and designing the public facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the proposed community facilities district, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the proposed community facilities district, and (iii) any other expenses incidental to the construction, completion, and inspection of the public facilities (the “Facilities”). On January 20, 2021, the Mayor and City Council approved Resolution Nos. 2021 -4 and 2021-5, which initiated the formation of the CFD, approved the boundaries of the proposed CFD, described the facilities proposed to be financed, proposed a rate and method of apportionment of special taxes and declared the necessity to issue bonds secured by such special tax levy to finance the Facilities. Additionally, the resolutions set forth a public hearing to be held on March 3, 2021. Discussion On March 3, 2021, the Mayor and City Council will hold a public hearing regarding the formation of the proposed CFD and the issuance of bonded indebtedness therein. If a majority of the landowners within the boundaries of the proposed CFD do not register written or oral protest, then the City Council may consider adopting the following resolutions: The Resolution of Formation specifies that special taxes will be levied on all parcels of taxable property within the CFD to pay principal of and interest on the bonds of the CFD which will be issued to finance the Facilities. The amounts of the special taxes that may be levied for these purposes are set forth in Exhibit A to the Resolution of Formation. The Resolution of Formation also approve s the form of Funding Agreement which sets forth the terms and conditions under which the City will acquire improvements constructed by the Owner. The purpose of this Agreement is to provide for the levy of Special Taxes and the issuance and sale of the Bonds of the District secured by the Special Taxes to finance the design, planning, engineering, financing, installation, and construction of the 14 Packet Pg. 655 7132 Page 3 Public Facilities and expenses incidental thereto . The Resolution Determining the Necessity authorizes the CFD to incur a bonded indebtedness in an aggregate principal amount not to exceed $4,000,000 for the purpose of financing the Facilities as described above and calls a special election for March 3, 2021 on the proposition of the CFD incurring a bonded indebtedness. The Resolution Calling the Special Election schedules the elections for the CFD with respect to the annual levy of special taxes to pay principal of and interest on bonds of the CFD, with respect to the CFD incurring a bonded indebtedness, and with respect to establishing an annual appropriations limit of $4,000,000. The City Clerk and the Owner have consented to hold the election on March 3, 2021. The County of San Bernardino Registrar of Voters has certified that there are no registered voters within the boundaries of the CFD. Following the adoption of the Resolution Calling the Special Election, the City Clerk will conduct the election and declare the election results. Following the election, the Mayor and City Council may adopt the Resolution Declaring Election Results which declares the results of the election. If the results are in favor of the levy of special taxes within the CFD and the incurrence of bonded indebtedness therein, the City Council may call for the first reading of the Ordina nce Levying Special Taxes which authorizes the levy of special taxes within the CFD. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No.1: Financial Stability and Key Target No. 4: Economic Growth and Development. This project will contribute to ensure that the City is clean and attractive and provide infrastructure designed for long term economic growth. Fiscal Impact There is no fiscal impact to the General Fund at this time. The individual property owners in the CFD will be responsible for annual payments of special taxes. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a public hearing; 2. Adopt Resolution No. 2021-42 of the Mayor and City Council of the City of San Bernardino, California, establishing Community Facilities District No. 2021 -1 (Ferree Street) of the City of San Bernardino, County of San Bernardino, State of California, and the boundaries thereof and approving a Funding Agreement; 3. Adopt Resolution No. 2021-43 of the Mayor and City Council of the City of San Bernardino, California, determining the necessity to incur a bonded indebtedness 14 Packet Pg. 656 7132 Page 4 for Community Facilities District No. 2021-1 (Ferree Street), submitting to the qualified electors of the Community Facilities District a proposition to authorize the levy of a special tax therein, to authorize such Community Facilities District to incur a bonded indebtedness secured by the levy of a special therein to finance certain types of public facilities and to establish an appropriations limit for such Community Facilities District and calling a special election for the Community Facilities District on a proposition for incurring such bonded indebtedness; 4. Adopt Resolution No. 2021-44 of the Mayor and City Council of the City of San Bernardino, California calling a special election and submitting to the voters of Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino propositions regarding the annual levy of special taxes within the Community Facilities District to pay principal of and interest on bonds thereof and to pay the costs of public facilities and establishing an appropriations limit therefor; 5. Adopt Resolution No. 2021-45 of the Mayor and City Council of the City of San Bernardino, California declaring the results of the consolidated special elections within Community Facilities District No. 2021-1 (Ferree Street); and 6. Conduct first reading of Ordinance No. MC-1555 of the Mayor and City Council of the City of San Bernardino, California, acting as the legislative body of Community Facilities District No. 2021-1 (Ferree Street), authorizing the levy of special taxes in such community facilities district. Attachments Attachment 1 Resolution No. 2021-42; Establishing CFD Attachment 2 Resolution No. 2021-42: Exhibit A Attachment 3 Resolution No. 2021-43; Determining Necessity Attachment 4 Resolution No. 2021-44; Calling a Special Election Attachment 5 Resolution No. 2021-44; Exhibit A Attachment 6 Resolution No. 2021-45; Declaring Results of the Election Attachment 7 Ordinance No. MC-1555 Attachment 8 CFD Report Attachment 9 Funding Agreement Attachment 10 PowerPoint Presentation Ward: 3 Synopsis of Previous Council Actions: January 20, 2021 Mayor and City Council approved Resolution Nos. 2021 -4 and 2021-5, which initiated the formation of the CFD, approved the boundaries of the proposed CFD, described the facilities proposed to be financed, proposed a rate and method of apportionment of special taxes and declared the necessity to issue bonds secured by such special tax levy to finance the Facilities. Additionally, the resolutions set forth a public hearing to be held on March 3, 2021. 14 Packet Pg. 657 Resolution No. 2021-42 RESOLUTION NO. 2021-42 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2021-1 (FERREE STREET) OF THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AND THE BOUNDARIES THEREOF AND APPROVING A FUNDING AGREEMENT WHEREAS, the City Council (the “City Council”) of the City of San Bernardino (the “City”) has heretofore adopted the Resolution of Intention stating that a community facilities district to be known as “Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino, County of San Bernardino, State of California” (“CFD No. 2021-1”), is proposed to be established 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”), and fixing the time and place for a public hearing on the formation of CFD No. 2021-1; and WHEREAS, CFD No. 2021-1 is proposed to be established 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 the property within CFD No. 2021-1 and the financing of the acquisition, design, construction of local and regional traffic improvements, storm drain improvements, park, park improvements and open space, and sewer and water improvements, and it is proposed that CFD No. 2021-1 will be authorized to issue bonds and incur a bonded indebtedness for the purpose of financing such Facilities in the aggregate principal amount of $4,000,000; and WHEREAS, notice was published and mailed to the owner of all of the property in CFD No. 2021-1 relative to the intention of the City Council to establish CFD No. 2021-1, the levy of special taxes therein, the provision of public facilities therein and the incurring of a bonded indebtedness by CFD No. 2021-1 for the purpose of financing such public facilities, and of the time and place of the public hearing; and WHEREAS, there has been presented to the City Council an agreement entitled “Funding Agreement” (the “Funding Agreement”) to be entered into between the City, on behalf of CFD No. 2021-1, and ICO Fund VI, LLC, a Delaware limited liability company; and WHEREAS, on March 3, 2021, the City Council conducted the public hearing as required by law relative to the formation of CFD No. 2021-1, the levy of special taxes therein, the provision of public facilities therein, and the incurring of a bonded indebtedness by CFD No. 2021-1; and WHEREAS, prior to the commencement of the public hearing there was filed with the City Council a report (the “Report”) containing a description of the public facilities required to adequately meet the needs of CFD No. 2021-1, and an estimate of the fair and reasonable costs of providing such public facilities, as required by Section 53321.5 of the Act; and 14.a Packet Pg. 658 Attachment: Attachment 1 - Resolution 2021-42 - Resolution of Formation [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Resolution No. 2021-42 2 WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of CFD No. 2021-1, the levy of the special taxes therein, the provision of public facilities therein, and the incurring of the bonded indebtedness thereby were heard, and a full and fair hearing was held; and WHEREAS, at the public hearing evidence was presented to the City Council on the matters before it, and the City Council, at the conclusion of the hearing, was fully advised as to all matters relating to the formation of CFD No. 2021-1, the levy of the special taxes therein, the provision of public facilities therein, and the incurring of the bonded indebtedness therefor; and WHEREAS, the City Council may, therefore, proceed to establish CFD No. 2021-1; and WHEREAS, the City Clerk has advised the City Council that she has received a statement from the Registrar of Voters of the County of San Bernardino that there are no persons registered to vote in the territory of CFD No. 2021-1. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Findings. The City Council finds as follows: (a) All of the preceding recitals are true and correct; (b) On March 3, 2021, pursuant to notice thereof duly given as provided by law, the City Council conducted a public hearing with respect to the formation of CFD No. 2021-1, and the incurring of bonded indebtedness by and for CFD No. 2021-1 and the annual levying of specified special taxes on the taxable property within CFD No. 2021-1 to pay principal of and interest on bonds to be issued by and for CFD No. 2021-1 to finance the Facilities and other obligations which are described in Section 3(a) hereof; (c) The boundary map of CFD No. 2021-1 was recorded on February 3, 2021, pursuant to Sections 3111 and 3113 of the California Streets and Highways Code, at page 51 in Book 89 of Maps of Assessment and Community Facilities Districts, and as Instrument No. 2021-0053175 in the official records of the County of San Bernardino; (d) All prior proceedings with respect to the formation of CFD No. 2021-1 prior to and during the public hearing with respect to the formation of CFD No. 2021-1 which was conducted by the City Council on March 3, 2021, were valid and in conformity with the requirements of the Act; (e) No written protests were received, at or prior to the time of the public hearing, against the formation of CFD No. 2021-1, or the levying of the special taxes, or the incurring of a bonded indebtedness by CFD No. 2021-1, or the furnishing of specified types of public facilities, and the special taxes and public facilities have, therefore, not been eliminated by majority protest pursuant to Section 53324 of the Act; (f) The City Council is, therefore, authorized to adopt a resolution of formation pursuant to Section 53325.1 of the Act for the formation of Community Facilities District No. 14.a Packet Pg. 659 Attachment: Attachment 1 - Resolution 2021-42 - Resolution of Formation [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Resolution No. 2021-42 3 2021-1 (Ferree Street) of the City of San Bernardino, County of San Bernardino, State of California, and CFD No. 2021-1 should be established; and (g) Twelve (12) persons have not been registered to vote within the territory of CFD No. 2021-1 for each of the 90 days preceding the close of the public hearing on March 3, 2021, and pursuant to Section 53326 of the Act, the vote in the Consolidated Special Elections (defined below) provided for in Section 10 hereof shall, therefore, be by the landowners of CFD No. 2021-1 whose property would be subject to the special taxes if they were levied at the time of the elections, and each landowner shall have one vote for each acre, or portion thereof, which he or she owns within CFD No. 2021-1 which would be subject to the proposed special taxes if they were levied at the time of the elections. SECTION 2. Formation of District. Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino, County of San Bernardino, State of California, is hereby established. The boundaries of CFD No. 2021-1 are set forth and shown on the map entitled “Proposed Boundary Map - Community Facilities District No. 2021-1 (Ferree Street) City of San Bernardino, County of San Bernardino, State of California,” which is on file with the City Clerk, and those boundaries are hereby established. SECTION 3. Types of Facilities; Incidental Expenses. A general description of public facilities proposed to be acquired or constructed and financed by CFD No. 2021-1 (the “Facilities”) include but are not limited to: (a) Acquisition, design, construction of local and regional traffic improvements, storm drain improvements, park, park improvements and open space, and sewer and water improvements; and (b) The incidental expenses as such term is defined in Section 53317(e) of the Act, which will be incurred may include, but not be limited to: (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 CFD No. 2021-1, 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 CFD No. 2021-1, and (iii) any other expenses incidental to the construction, completion, and inspection of the public Facilities (the “Incidental Expenses”). SECTION 4. Special Taxes. Except where funds are otherwise available, a special tax sufficient to finance the Facilities and related Incidental Expenses (the “Special Taxes”), secured by the recordation of a continuing lien against all taxable or nonexempt property in CFD No. 2021-1, shall be annually levied within CFD No. 2021-1. Under no circumstances will the Special Tax levied in any fiscal year against any parcel used for private residential purposes be increased as consequence of delinquency or default by the owner of any other parcel or parcels within CFD No. 2021-1 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 14.a Packet Pg. 660 Attachment: Attachment 1 - Resolution 2021-42 - Resolution of Formation [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Resolution No. 2021-42 4 later than the date on which an occupancy permit or the equivalent for private residential use is issued and for such parcel. For further particulars as to the rate and method of apportionment of the Special Taxes to be levied on parcels of taxable property in CFD No. 2021-1 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 each CFD No. 2021-1 to clearly estimate the maximum amount that such person will have to pay. The conditions under which the obligation to pay the 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 ordinar y ad valorem property taxes; provided however, that CFD No. 2021-1 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. 2021-1, 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 5. 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 6. Report. The Report is hereby approved and is made a part of the record of the public hearing regarding the formation of CFD No. 2021-1, and is ordered to be kept on file with the City Clerk as part of the transcript of these proceedings. SECTION 7. 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 CFD No. 2021-1, 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 8. Prohibition of Owner Contracts. Pursuant to Section 53329.5 of the Act, the City Council finds that the public interest will not be served b y allowing the owners of property within CFD No. 2021-1 to enter into a contract in accordance with subdivision (a) of that section, and that such owners shall not be permitted to elect to perform the work and enter into a written contract with the City for the construction for the Facilities pursuant to said Section 53329.5. 14.a Packet Pg. 661 Attachment: Attachment 1 - Resolution 2021-42 - Resolution of Formation [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Resolution No. 2021-42 5 SECTION 9. Description of Voting Procedures. Except as otherwise provided in this section, the consolidated special elections on the propositions identified below shall be conducted by the Cit y Clerk in accordance with the provisions of the California Elections Code governing mail ballot elections of cities, insofar as they may be applicable. The voting procedures to be followed in conducting the consolidated special elections on (i) the proposition with respect to CFD No. 2021-1 incurring a bonded indebtedness, (ii) the proposition with respect to the levy of special taxes on parcels of taxable property within CFD No. 2021-1 to pay the principal of and interest on the bonds of CFD No. 2021-1, and (iii) the proposition with respect to establishing an appropriations limit for CFD No. 2021-1 in the amount of $4,000,000 (the “Consolidated Special Elections”) shall be as follows: (a) The Consolidated Special Elections shall be held on the earliest date, following the adoption by the City Council of this resolution, the resolution determining the necessity for CFD No. 2021-1 to incur a bonded indebtedness pursuant to Section 53351 of the Act, and a resolution pursuant to Section 53326 of the Act submitting to the qualified electors of CFD No. 2021-1 the propositions with respect to (i) CFD No. 2021-1 incurring a bonded indebtedness, (ii) the levy of special taxes to pay the principal of and interest on the bonds of CFD No. 2021-1, and (iii) establishing an appropriations limit for the community facilities district to the qualified electors of the community facilities district, upon which such elections can be held pursuant to Section 53326 which may be selected by the City Council, or such earlier date as the owners of land within CFD No. 2021-1 and the City Clerk agree and concur is acceptable. (b) Pursuant to Section 53326 of the Act, the Consolidated Special Elections may be held earlier than 90 days following the close of the public hearing if the qualified electors of CFD No. 2021-1 waive the time limits for conducting the elections set forth in said Section 53326 by unanimous written consent and the City Clerk concurs in such earlier election date as shall be consented to by the qualified electors. (c) Pursuant to Section 53326 of the Act, ballots for the Consolidated Special Elections shall be distributed to the qualified electors by the City Clerk by mail with return postage prepaid, or by personal service. (d) Pursuant to applicable sections of the California Elections Code governing the conduct of mail ballot elections of cities, and specifically Division 4 (commencing with Section 4000) of the California Elections Code with respect to elections conducted by mail, the City Clerk shall mail or deliver to each qualified elector an official ballot in a form specified by the City Council in the resolutions calling and consolidating the Consolidated Special Elections, and shall also mail or deliver to all such qualified electors a ballot pamphlet and instructions to voter, including a sample ballot identical in form to the official ballot but identified as a sample ballot, a statement pursuant to Section 9401 of that Code, an impartial analysis by the City Attorney pursuant to Section 9280 of that Code with respect to the ballot propositions contained in the official ballot, arguments and rebuttals, if any, pursuant to Sections 9281 to 9287, inclusive, and 9295 of that Code, a return identification envelope with prepaid postage thereon addressed to the City Clerk for the return of voted official ballots, and a copy of the Resolution of Formation provided, however, that such statement, analysis and arguments may be waived with the unanimous consent of all the landowners who are qualified electors and shall be so stated in the 14.a Packet Pg. 662 Attachment: Attachment 1 - Resolution 2021-42 - Resolution of Formation [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Resolution No. 2021-42 6 resolution adopted by the City Council calling the Consolidated Special Elections. Such statement, impartial analysis and arguments, if any, shall be prepared by the City Attorney. (e) The official ballot to be mailed or delivered by the City Clerk or her designee to each landowner-voter shall have printed or typed thereon the name of the landowner-voter and the number of votes to be voted by the landowner-voter and shall have appended to it a certification to be signed by the person voting the official ballot which shall certify that the person signing the certification is the person who voted the official ballot, and if the landowner - voter is other than a natural person, that he or she is an officer of or other person affiliated with the landowner-voter entitled to vote such official ballot, that he or she has been authorized to vote such official ballot on behalf of the landowner-voter, that in voting such official ballot it was his or her intent, as well as the intent of the landowner-voter, to vote all votes to which the landowner-voter is entitled based on its land ownership on the propositions set forth in the official ballot as marked thereon in the voting square opposite each such proposition, and further certifying as to the acreage of the landowner-voter’s land ownership within CFD No. 2021-1. (f) The return identification envelope mailed or delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the following: (i) the name of the landowner, (ii) the address of the landowner, (iii) a declaration under penalty of perjury stating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot and is the person whose name appears on the identification envelope, (iv) the printed name and signature of the voter, (v) the address of the voter, (vi) the date of signing and place of execution of the declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only by the City Clerk. (g) The instruction to voter form to be mailed or delivered by the City Clerk to the landowner-voters shall inform them that the official ballots shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted by the hour on the date of the election which is specified by the City Council in the resolution calling the Consolidated Special Elections for the receipt of voted ballots; provided that if all qualified voters have voted, the elections shall be closed with the concurrence of the City Clerk. (h) Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the elections, the City Clerk shall canvass the votes cast in the Consolidated Special Elections, and shall file a statement with the City Council as to the results of such canvass and the election on each proposition set forth in the official ballot. The procedures set forth in this section for conducting the consolidated special elections, if they are held, may be modified as the City Council may determine to be neces sary or desirable by a resolution subsequently adopted by the City Council. SECTION 10. Funding Agreement. The Funding Agreement is approved and the City Manager and the City Clerk are authorized to execute and deliver the Funding Agreement on behalf of the City in the form presented to the City Council at the meeting at which this 14.a Packet Pg. 663 Attachment: Attachment 1 - Resolution 2021-42 - Resolution of Formation [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Resolution No. 2021-42 7 resolution is adopted, with such changes therein as the officer executing the same may approve, such approval to be conclusively evidenced by the execution and delivery thereof. APPROVED and ADOPTED by the City Council and signed by the Mayor and Attested by the City Clerk this 3rd day of March, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, City Clerk Attest: Sonia R. Carvalho, City Attorney 14.a Packet Pg. 664 Attachment: Attachment 1 - Resolution 2021-42 - Resolution of Formation [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Resolution No. 2021-42 8 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-42, adopted at a regular meeting held on the 3rd day of March, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2021. ______________________________ Genoveva Rocha, City Clerk 14.a Packet Pg. 665 Attachment: Attachment 1 - Resolution 2021-42 - Resolution of Formation [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree A-1 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR COMMUNITY FACILITIES DISTRICT NO. 2021-1 (FERREE STREET) OF THE CITY OF SAN BERNARDINO A Special Tax (all capitalized terms not otherwise defined herein are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino ("CFD No. 2021-1"). The amount of Special Tax to be levied in each Fiscal Year, on an Assessor’s Parcel, shall be determined by the City Council of the City of San Bernardino, acting in its capacity as the legislative body of CFD No. 2021-1 by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre” or “Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2021-1: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes A to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2021 -1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2021-1 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2021-1 and any major property owner associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2021-1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2021 -1 for any other administrative purposes of CFD No. 2021-1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. 14.b Packet Pg. 666 Attachment: Attachment 2 - Exhibit A (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) A-2 "Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit on or before June 1st preceding the Fiscal Year in which the Special Tax is being levied. "Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number. "Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number. "Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification. "Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Tax within CFD No. 2021-1 have been pledged. "Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD. "Building Permit" means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include expired or cancelled building permits, or any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses. "Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. “CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes. 14.b Packet Pg. 667 Attachment: Attachment 2 - Exhibit A (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) A-3 "CFD” or “CFD No. 2021-1" means Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino established by the City under the Act. “City” means the City of San Bernardino, State of California. "City Council" means the City Council of the City of San Bernardino, acting as the Legislative Body of CFD No. 2021-1, or its designee. “Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 4200 et seq. "County" means the County of San Bernardino, State of California. "Developed Property" means all Assessor’s Parcels of Taxable Property that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) a Building Permit for new construction was issued on or before June 1st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F. "Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) o or recordation of a Condominium Plan pursuant to California Civil Code Section 4200 et seq. that creates individual lots for which Building Permits may be issued without further subdivision. "Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th. “Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1 of Section D. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2021-1 in any Fiscal Year on any Assessor’s Parcel. “Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit(s) was issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. 14.b Packet Pg. 668 Attachment: Attachment 2 - Exhibit A (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) A-4 "Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1. “Proportionately” means for Taxable Property for Special Tax that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property or Provisional Undeveloped Property. "Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section F. "Residential Property" means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. “Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property on an Assessor’s Parcel. "Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2021-1 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or replenish any reserve funds established under the Indenture in association with the Bonds to the extent that replenishment has not been included in the computation of the Special Tax Requirement in a previous Fiscal Year, (v) to cure any delinquencies in the amount of principal or interest on the Bonds that occurred in a previous Fiscal Year, and (vi) the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2021-1 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Undeveloped Property as set forth in Step Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture. "Taxable Property" means all Assessor’s Parcels within CFD No. 2021-1, which are not Exempt Property. “Taxable Unit” means either a Residential Unit or an Acre. 14.b Packet Pg. 669 Attachment: Attachment 2 - Exhibit A (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) A-5 "Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision. “Trustee” means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, Provisional Undeveloped Property. B. SPECIAL TAX Commencing Fiscal Year 2021-2022 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax to fund the Special Tax Requirement. C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX Each Fiscal Year, beginning with Fiscal Year 2021-2022, each Assessor’s Parcel within CFD No. 2021-1 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property. Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non-Residential Property. Each Assessor’s Parcel of Residential Property shall further be classified as a Single Family Residential Property or Multifamily Property. Each Assessor’s Parcel of Single Family Residential Property shall be further assigned to a Land Use Category based on its Building Square Footage. In the event that there are parent Assessor’s Parcel(s) for which one or more Building Permits have been issued and the County has not yet assigned final Assessor’s Parcel Number(s) to the lots on which the Residential Unit(s) have been or will be built (in accordance with the Final Map or Condominium Plan) on such parent Assessor’s Parcel, the amount of the Special Tax on such parent Assessor’s Parcel shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax levy for such Assessor’s Parcel, based on the classification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall be determined based on the Developed Property Special Tax rates and such amounts shall be levied as Developed Property in accordance with Step 1 and, if applicable, Step 4 of Section E below; and (3) the amount of the Special Tax levy on the Taxable Property in such Assessor’s Parcel not subject to the Special Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on Undeveloped Property pursuant to Step 3 of Section E below, multiplied by the total of the amount determined in clause (1), less (B) the amount determined in clause (2). 14.b Packet Pg. 670 Attachment: Attachment 2 - Exhibit A (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) A-6 D. MAXIMUM SPECIAL TAX 1. Developed Property The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property in any Fiscal Year shall be the greater of (i) the Assigned Special Tax or (ii) the Backup Special Tax. The Maximum Special Tax for each Assessor’s Parcel of Non -Residential Property and Multifamily Property shall be the applicable Assigned Special Tax described in Table 1 of Section D. a. Assigned Special Tax Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or Non-Residential Property shall be subject to an Assigned Special Tax . The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property for Fiscal Year 2021-2022 shall be determined pursuant to Table 1 below. TABLE 1 ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY FISCAL YEAR 2021-2022 Land Use Category Taxable Unit Building Square Footage Assigned Special Tax Per Taxable Unit 1. Single Family Residential Property RU Less than 1,850 sq. ft $2,266 2. Single Family Residential Property RU 1,850 sq. ft to 2,000 sq. ft $2,366 3. Single Family Residential Property RU Greater than 2,000 sq. ft $2,433 4. Multifamily Property Acre N/A $39,394 5. Non-Residential Property Acre N/A $39,394 b. Multiple Land Use Categories In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Type. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for each Taxable Unit for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final. 14.b Packet Pg. 671 Attachment: Attachment 2 - Exhibit A (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) A-7 c. Backup Special Tax The Backup Special Tax for an Assessor’s Parcel within a Final Map classified as Single Family Residential Property shall be calculated according to the following formula. B = (U x A) / L The terms above have the following meanings: B = Backup Special Tax per Assessor’s Parcel classified as Single Family Residential Property within the Final Map. U = Maximum Special Tax per Acre of Undeveloped Property per Section D.3 below. A = Acreage of Single Family Residential Property that exists or is expected to exist in such Final Map at the time of calculation, as determined by the Administrator. L = Number of Assessor’s Parcels of Single Family Residential Property expected to exist after build out in such Final Map at the time of calculation, as determined by the Administrator. In the event any portion of the Final Map is changed or modified, the Backup Special Tax for all Assessor’s Parcels within such changed or modified area shall be $39,394 per Acre. Notwithstanding the foregoing, the Backup Special Tax for an Assessor’s Parcel of Developer Property for which a certificate of occupancy has been granted may not be revised. In the event any superseding Final Map is recorded as a Final Map within the boundaries of the CFD, the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be $39,394 per Acre. The Backup Special Tax shall not apply to Multifamily Residential Property or Non- Residential Property. 1. Approved Property The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Single Family Property shall be the Backup Special Tax computed pursuant to Section D.1.c above. The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Multifamily Residential Property or Non-Residential Property shall be $39,394 per Acre. 2. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional Undeveloped Property shall be $39,394 per Acre. 14.b Packet Pg. 672 Attachment: Attachment 2 - Exhibit A (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) A-8 E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing Fiscal Year 2021-2022 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps: Step One: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rates in Table 1 to satisfy the Special Tax Requirement. Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement. Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Annual Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement. Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special Tax Requirement. Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement. Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default. F. EXEMPTIONS The City shall classify as Exempt Property, in the chronological order in which the property becomes exempt, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or 14.b Packet Pg. 673 Attachment: Attachment 2 - Exhibit A (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) A-9 restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or uti lity easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, or (vi) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than 6.38 Acres. Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 6.38 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 6.38 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E. G. PREPAYMENT OF SPECIAL TAX The following additional definitions apply to this Section G: “CFD Public Facilities” means $$2,558,800 expressed in 2021 dollars, which shall increase by the Construction Inflation Index on July 1, 2022, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the public facilities under the authorized bonding program for CFD No. 2021-1, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Tax levied under this Rate and Method of Apportionment. “Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible under CFD No. 2021-1. “Construction Inflation Index” means the annual percentage change in the Engineering News- Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be pub lished, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the CFD Public Facilities minus public facility costs available to be funded, or that were funded, through existing construction or escrow accounts or funded by the Outstanding Bonds or Special Taxes, and minus public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment. “Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax. 14.b Packet Pg. 674 Attachment: Attachment 2 - Exhibit A (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) A-10 1. Prepayment in Full The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Approved or Undeveloped Property for which a Building Permit has not been issued, and (iv) Assessor’s Parcels of Provisional Undeveloped Property. The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non -refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes. The Prepayment Amount shall be calculated as follows (some capitalized terms are defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Amount plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit Equals: Prepayment Amount The Prepayment Amount shall be determined as of the proposed prepayment date as follows: 1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel. 2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. Fo r an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, or Provisional Undeveloped Property to be prepaid, compute the Maximum Special Tax for the Assessor’s Parcel. 3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied the Maximum Special Tax assuming build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for 14.b Packet Pg. 675 Attachment: Attachment 2 - Exhibit A (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) A-11 Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid. 4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”). 5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”). 6. Determine the Future Facilities Costs. 7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel (the “Future Facilities Amount”). 8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments. 9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year which have not yet been paid. 10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount. 11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”). 12. Verify the administrative fees and expenses of the CFD, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”). 13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. 14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit. 14.b Packet Pg. 676 Attachment: Attachment 2 - Exhibit A (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) A-12 15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD. The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments. As a result of the payment of the current Fiscal Year’s Special Tax levy as determined purs uant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses. Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the City Council. 2. Prepayment in Part The Maximum Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section G.1 shall be modified as provided by the following formula: PP = ((PE –A) x F) +A These terms have the following meaning: PP = Partial Prepayment Amount PE = the Prepayment Amount calculated according to Section G.1 F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Maximum Special Tax obligation A = the Administrative Fees and Expenses determined pursuant to Section G.1 The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent 14.b Packet Pg. 677 Attachment: Attachment 2 - Exhibit A (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) A-13 to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the am ount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment Amount for the Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of Special Tax obligation will continue on the Assessor’s Parcel pursuant to Section E. H. TERMINATION OF SPECIAL TAX For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax. The Special Tax shall cease not later than the 2061-2062 Fiscal Year, however, Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2021-1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2021-1 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Tax remain uncollected and (iv) all other obligations of CFD No. 2021-1 have been satisfied. I. MANNER OF COLLECTION The Special Tax shall be collected in the same manner and at the same tim e as ordinary ad valorem property taxes, provided, however, that CFD No. 2021-1 may collect Special Tax at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act. J. APPEALS OF SPECIAL TAXES Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD 14.b Packet Pg. 678 Attachment: Attachment 2 - Exhibit A (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) A-14 Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Assessor’s Parcel(s). No refunds of previously paid Special Taxes shall be made. The CFD Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as herein specified. 14.b Packet Pg. 679 Attachment: Attachment 2 - Exhibit A (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) Resolution No. 2021-43 RESOLUTION NO. 2021-43 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DETERMINING THE NECESSITY TO INCUR A BONDED INDEBTEDNESS FOR COMMUNITY FACILITIES DISTRICT NO. 2021-1 (FERREE STREET), SUBMITTING TO THE QUALIFIED ELECTORS OF THE COMMUNITY FACILITIES DISTRICT A PROPOSITION TO AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN, TO AUTHORIZE SUCH COMMUNITY FACILITIES DISTRICT TO INCUR A BONDED INDEBTEDNESS SECURED BY THE LEVY OF A SPECIAL TAX THEREIN TO FINANCE CERTAIN TYPES OF PUBLIC FACILITIES AND TO ESTABLISH AN APPROPRIATIONS LIMIT FOR SUCH COMMUNITY FACILITIES DISTRICT AND CALLING A SPECIAL ELECTION FOR THE COMMUNITY FACILITIES DISTRICT ON A PROPOSITION FOR INCURRING SUCH BONDED INDEBTEDNESS WHEREAS, on January 20, 2021, the City Council (the “City Council”) of the City of San Bernardino (the “City”), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code (the “Act”), adopted Resolution No. 2021-5 declaring the necessity for Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino, County of San Bernardino, State of California (“CFD No. 2021-1”), to incur a bonded indebtedness for the purpose of providing and financing the acquisition, design, construction of local and regional traffic improvements, storm drain improvements, park, park improvements and open space, and sewer and water improvements (the “Facilities”), which are necessary to meet increased demands placed upon the City as a result of development which will occur within CFD No. 2021-1; and WHEREAS, notice was published and mailed to the owner of all of the property in CFD No. 2021-1 relative to the intention of the City Council to establish CFD No. 2021-1, to incur a bonded indebtedness for CFD No. 2021-1the levy of special taxes therein, the provision of public facilities therein, and of the time and place of the public hearing; and WHEREAS, on March 3, 2021, at the time and place of the hearing and the notice thereof, the City Council conducted the public hearing and afforded all persons interested, including persons owning property within CFD No. 2021-1, an opportunity to be heard on the proposed authorization to incur bonded indebtedness, and no protests were received; and WHEREAS, on March 3, 2021, at the conclusion of the hearing, the City Council adopted the resolution of formation pursuant to Section 53325.1(a) of the Act (the “Resolution of Formation”), establishing CFD No. 2021-1; and 14.c Packet Pg. 680 Attachment: Attachment 3 - Resolution No. 2021-43 - Resolution Determining Necessity [Revision 1] (7132 : Community Facilities District No. Resolution No. 2021-43 2 WHEREAS, the City Clerk has advised the City Council that she has received a statement from the Registrar of Voters of the County of San Bernardino that there are no persons registered to vote in the territory of CFD No. 2021-1; and WHEREAS, the City Council has determined that it is necessary that a bonded indebtedness for CFD No. 2021-1 be incurred to contribute to the financing of all or a portion of the Facilities and to authorize the submittal of a proposition to the qualified electors of CFD No. 2021-1, being the landowner of CFD No. 2021-1, all as authorized by the Act; BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Necessity. It is necessary for CFD No. 2021-1 to incur a bonded indebtedness as authorized under the terms and provisions of the Act for the purpose of providing and financing the Facilities. SECTION 2. Purpose for Bonded Indebtedness. The specific purposes for the proposed bonded indebtedness is to contribute to the financing of the acquisition or construction of the Facilities. SECTION 3. Territory to Pay for Bonded Indebtedness. The property within CFD No. 2021-1 will pay for the bonded indebtedness. SECTION 4. Bond Authorization. The amount of the bonded indebtedness of CFD No. 2021-1 may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the indebtedness is to be incurred as authorized pursuant to the Act. The amount of the indebtedness to be authorized for CFD No. 2021-1 is $4,000,000. SECTION 5. Costs Included. The amount of the bonded indebtedness shall include all costs and estimated costs incidental to, or connected with, the accomplishment of the purposes for which the bonded indebtedness is to be incurred, including, but not limited to, the estimated costs of construction and acquisition of the Facilities, acquisition of land and rights-of-way, satisfaction of contractual obligations relating to expenses or the advancement of funds for expenses existing at the time the bonds are issued, architectural, inspe ction, legal, fiscal and financial consultant fees, bond and other reserve funds and interest on any bonds of CFD No. 2021-1 estimated to be due and payable within two years from the date of the issuance of such bonds, election costs, and all costs of issuance of the bonds, including, but not limited to, underwriter's discount, fees for bond counsel, disclosure counsel, appraisers, financial advisors, market absorption consultants and other consultants, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit, and other credit enhancement costs, and printing costs. SECTION 6. Terms of Bonds. The maximum term of the bonds and/or any series shall not exceed 40 years, and such bonds may be issued in differing series, at differing times. The maximum rate of interest to be paid on the bonds shall not exceed 12 percent per annum or the maximum interest rate permitted by law at the time of sale of any of such bonds. The bonds, except where other funds are made available, shall be paid exclusi vely from the annual levy of 14.c Packet Pg. 681 Attachment: Attachment 3 - Resolution No. 2021-43 - Resolution Determining Necessity [Revision 1] (7132 : Community Facilities District No. Resolution No. 2021-43 3 the special tax within CFD No. 2021-1, and are not secured by any other taxing power or the City. SECTION 7. Proposition to be Submitted to Voters. The proposition to be submitted to the voters within CFD No. 2021-1 with respect to the proposed bonded indebtedness shall be as follows: PROPOSITION A: Shall Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino, subject to accountability measures required pursuant to Government Code Sections 53410 and 53411, incur a bonded indebtedness in an amount not to exceed $4,000,000 for the specific purposes set forth in the Resolution of Formation adopted by the City Council of the City of San Bernardino on March 3, 2021? SECTION 8. Election. The date of the special election with respect to the incurring of the aforementioned bonded indebtedness for CFD No. 2021-1, at which time the proposition set forth in Section 5 hereof shall be submitted to the appropriate qualified voters of CFD No. 2021- 1 is March 3, 2021, and that special election is hereby called for that date. Pursuant to Section 53326 of the Act, since at the time of the close of the public hearing, and for at least the preceding 90 days, less than 12 persons have been registered to vote within the territory of CFD No. 2021-1, the vote in the special election will be by the landowners of CFD No. 2021-1 whose property would be subject to the special taxes if they were levied at the time of the election, with each landowner of record at the close of the public hearing having one vote for each acre or portion of an acre of land that he or she owns within CFD No. 2021-1, and the special election shall be conducted by the City Clerk (the “City Clerk”). The special election shall be consolidated with the special election with respect to the propositions regarding (i) the levy of special taxes within CFD No. 2021-1 for the payment of the principal of and interest on the bonds to finance the acquisition or construction of all or a portion of the Facilities, and (ii) establishing an appropriations limit for CFD No. 2021-1 which has also been called for March 3, 2021. The consolidated special elections shall be conducted by the City Clerk pursuant to applicable provisions of the California Elections Code with respect to mail-ballot elections of cities and specifically Division 4 (commencing w ith Section 4000) of that Code, insofar as they may be applicable. Pursuant to Section 53326 of the Act, the official ballots shall be delivered by the City Clerk to the qualified electors by mail or personal service. The voted official ballots shall be received by the City Clerk by 7:00 p.m. on the date of the election; provided that if all qualified electors have voted, the election shall be closed with the concurrence of the City Clerk. SECTION 9. Accountability Measures. Pursuant to and in compliance with Section 53410 of the Act, if the voters approve the proposition contained in the official ballots for the consolidated special elections with respect to CFD No. 2021-1 incurring bonded indebtedness for the purposes for which such indebtedness by CFD No. 2021-1, is to be incurred and bonds of CFD No. 2021-1 are to be issued (the “Bond Proposition”), the incurring of such bonded 14.c Packet Pg. 682 Attachment: Attachment 3 - Resolution No. 2021-43 - Resolution Determining Necessity [Revision 1] (7132 : Community Facilities District No. Resolution No. 2021-43 4 indebtedness and the issuance of bonds of CFD No. 2021-1 shall be subject to the following accountability measures: (a) the Bond Proposition shall identify the specific purposes for which the bonds are to be issued; (b) the proceeds of the bonds shall be applied only for the specific purposes identified in the Bond Proposition; (c) an account or accounts shall be created pursuant to the fiscal agent agreement for such bonds into which the proceeds of the sale of such bonds shall be deposited; and (d) the City Manager or his designee shall file a report with the City Council as required by Section 53411 of the California Government Code. The City Council finds that the Bond Proposition which will be set forth in the official ballot for the consolidated special elections, and which is set forth in Section 5 hereof, identifies the specific purposes for which CFD No. 2021-1 will incur bonded indebtedness and issue bonds. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 3rd day of March, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, City Clerk Attest: Sonia R. Carvalho, City Attorney 14.c Packet Pg. 683 Attachment: Attachment 3 - Resolution No. 2021-43 - Resolution Determining Necessity [Revision 1] (7132 : Community Facilities District No. Resolution No. 2021-43 5 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-43 adopted at a regular meeting held on the 3rd day of March, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2021. ______________________________ Genoveva Rocha, City Clerk 14.c Packet Pg. 684 Attachment: Attachment 3 - Resolution No. 2021-43 - Resolution Determining Necessity [Revision 1] (7132 : Community Facilities District No. Resolution No. 2021-44 RESOLUTION NO. 2021-44 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA CALLING A SPECIAL ELECTION AND SUBMITTING TO THE VOTERS OF COMMUNITY FACILITIES DISTRICT NO. 2021-1 (FERREE STREET) OF THE CITY OF SAN BERNARDINO PROPOSITIONS REGARDING THE ANNUAL LEVY OF SPECIAL TAXES WITHIN THE COMMUNITY FACILITIES DISTRICT TO PAY PRINCIPAL OF AND INTEREST ON BONDS THEREOF AND TO PAY THE COSTS OF PUBLIC FACILITIES AND ESTABLISHING AN APPROPRIATIONS LIMIT THEREFOR WHEREAS, pursuant to Section 53325.1 of the California Government Code, the City Council (the “City Council”) of the City of San Bernardino (the “City”) has adopted the resolution of formation of Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino, County of San Bernardino, State of California (“CFD No. 2021-1”), establishing the Community Facilities District and the boundaries thereof (the “Resolution of Formation”); and WHEREAS, pursuant to Section 53351 of the California Government Code, the City Council has also adopted a resolution determining that it is necessary that CFD No. 2021-1 incur a bonded indebtedness for the purpose of financing certain public facilities; and WHEREAS, by that resolution, the City Council called a special election on the proposition to be submitted to the voters with respect to CFD No. 2021-1 incurring a bonded indebtedness for the purpose of financing such public facilities; and WHEREAS, pursuant to Section 53326 of the California Government Code, it is necessary that the City Council also submit to the voters of CFD No. 2021-1 the proposition relating to the annual levy of special taxes on taxable property within CFD No. 2021-1 to pay the principal of and interest on the bonds thereof, if such bonds are authorized and issued; and WHEREAS, pursuant to Section 53325.7 of the California Government Code, the City Council may also submit to the voters of CFD No. 2021-1 a proposition with respect to establishing an appropriations limit for CFD No. 2021-1; and WHEREAS, the City Clerk (the “City Clerk”) has advised the City Council that she has received a statement from the Registrar of Voters of the County of San Bernardino that there are no persons registered to vote in the territory of CFD No. 2021-1. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Findings. The City Council finds that: (i) the foregoing recitals are true and correct; (ii) 12 persons have not been registered to vote within the territory of CFD No. 14.d Packet Pg. 685 Attachment: Attachment 4 - Resolution No. 2021-44 - Resolution Calling Election [Revision 1] (7132 : Community Facilities District No. 2021-1 Resolution No. 2021-44 2 2021-1 for each of the 90 days preceding the close of the public hearing on March 3, 2021; (iii) pursuant to Section 53326 of the California Government Code, as a result of t he findings set forth in clause (ii) above, the vote in the special election called by this resolution shall be by the landowners of CFD No. 2021-1 whose property would be subject to the special taxes if they were levied at the time of the election, and each landowner shall have one vote for each acre, or portion thereof, which he or she owns within CFD No. 2021-1 which would be subject to the proposed special taxes if they were levied at the time of the election; (iv) the owner of all of the property in CFD No. 2021-1 has by written consent (a) waived the time limits set forth in Section 53326 of the California Government Code for holding the election called by this resolution an d the election on the proposition of CFD No. 2021-1 incurring bonded indebtedness, which pursuant to Section 4 hereof is consolidated with the election called hereby, (b) consented to the holding of the consolidated special elections on March 3, 2021, (c) waived notice and mailed notice of the time and date of the consolidated special elections, and (d) waived an impartial analysis of the ballot propositions pursuant to Section 9313 or 13119 of the California Elections Code and arguments and rebuttals pursuant to Sections 9314 to 9317, inclusive, mailing of a statement pursuant to Section 9401 of that Code and receipt of a ballot pamphlet as required by Section 3023 of that Code; and (v) the City Clerk has consented to the holding of the consolidated special elections on March 3, 2021. SECTION 2. Call of Election. The City Council hereby calls and schedules special elections for March 3, 2021, within and for CFD No. 2021-1 on (i) the proposition with respect to the annual levy of special taxes on taxable property within CFD No. 2021-1 for the payment of principal of and interest on the bonds of CFD No. 2021-1, which may be issued and sold to finance certain public facilities, and (ii) the proposition with respect to establishing an appropriations limit for CFD No. 2021-1. SECTION 3. Propositions. (a) The propositions to be submitted to the voters of CFD No. 2021-1 at such special election shall be as follows: First Proposition: Shall Proposition A authorizing the levy of special taxes annually on taxable property within CFD No. 2021-1 (Ferree Street) of the City of San Bernardino, County of San Bernardino, State of California, to pay the principal of and interest on the bonds of the community facilities district which may be issued and sold for the purposes specified in the Resolution of Formation adopted by the City Council of the City of San Bernardino on March 3, 2021 (the “Resolution of Formation”), to replenish the reserve fund for the bonds, or to accumulate funds for future bond payments, including any amount required by federal law to be rebated to the United States with regard to the bonds, and to pay expenses incidental thereto, and to the levy and collection of the special tax, so long as the special tax is needed to pay the principal of and interest on the bonds and for such other purposes, at the special tax rates and pursuant to the method of apportioning the special tax set forth in Exhibit “A” to the Resolution of Formation adopted by the City Council of the City of San Bernardino on March 3, 2021 be approved? 14.d Packet Pg. 686 Attachment: Attachment 4 - Resolution No. 2021-44 - Resolution Calling Election [Revision 1] (7132 : Community Facilities District No. 2021-1 Resolution No. 2021-44 3 Second Proposition: Shall Proposition B authorizing a bonded indebtedness in an amount not to exceed $4,000,000 for the specific purposes set forth in the Resolution of Formation adopted by the City Council of the City of San Bernardino on March 3, 2021, be approved? Third Proposition: Shall Proposition C authorizing an annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, in the amount of $4,000,000 be approved? SECTION 4. Consolidation of Elections. The special election called hereby on the propositions to be submitted to the voters of CFD No. 2021-1, as set forth in Section 3 hereof, shall be consolidated with the special election on the proposition of CFD No. 2021-1 incurring bonded indebtedness. The ballot for said consolidated elections shall be in the form attached hereto as Exhibit A. SECTION 5. Conduct of Election. Except as otherwise provided in Section 6 hereof, the consolidated special elections shall be conducted by the City Clerk in accordance with the provisions of the California Elections Code governing mail ballot elections of cities, and in particular the provisions of Division 4 (commencing with Section 4000), of that Code, insofar as they may be applicable. SECTION 6. Election Procedures. The procedures to be followed in conducting the consolidated special elections on (i) the proposition with respect to CFD No. 2021-1 incurring a bonded indebtedness, (ii) the proposition with respect to the levy of special taxes on taxable property within CFD No. 2021-1 to pay the principal of and interest on the bonds of CFD No. 2021-1, and (iii) the proposition with respect to establishing an appropriations limit for CFD No. 2021-1 in the amount of $4,000,000 (the “Consolidated Special Elections”) shall be as follows: (a) Pursuant to Section 53326 of the California Government Code, ballots for the Consolidated Special Elections shall be distributed to the qualified electors by the City Clerk by mail or personal service. (b) Pursuant to applicable sections of the California Elections Code governing the conduct of mail ballot elections of cities, and in particular Division 4 (commencing with Section 4000) of that Code with respect to elections conducted by mail, the City Clerk shall mail or deliver to each qualified elector an official ballot in the form attached hereto as Exhibit “A,” and shall also mail or deliver to all such qualified electors a ballot pamphlet and instructions to voter, including a sample ballot identical in form to the official ballot but identified as a sample ballot, a return identification envelope with prepaid postage thereon addressed to the City Clerk for the return of voted official ballots and a copy of the Resolution of Formation adopted by the City Council of the City of San Bernardino on March 3, 2021. (c) The official ballot to be mailed or delivered by the City Clerk to each landowner- voter shall have printed or typed thereon the name of the landowner-voter and the number of votes to be voted by the landowner-voter and shall have appended to it a certification to be signed by the person voting the official ballot which shall certify that the person signing the certification is the person who voted the official ballot, and if the landowner-voter is other than a 14.d Packet Pg. 687 Attachment: Attachment 4 - Resolution No. 2021-44 - Resolution Calling Election [Revision 1] (7132 : Community Facilities District No. 2021-1 Resolution No. 2021-44 4 natural person, that he or she is an officer of or other person affiliated with the landowner-voter entitled to vote such official ballot, that he or she has been authorized to vote such official ballot on behalf of the landowner-voter, that in voting such official ballot it was his or her intent, as well as the intent of the landowner-voter, to vote all votes to which the landowner-voter is entitled based on its land ownership on the propositions set forth in the official ballot as marked thereon in the voting square opposite each such proposition, and further certifying as to the acreage of the landowner-voter’s land ownership within CFD No. 2021-1. (d) The return identification envelope to be mailed or delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the following: (i) the name of the landowner, (ii) the address of the landowner, (iii) a declaration under penalty of perjury stating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot and is the person whose name appears on the identification envelope, (iv) the printed name and signature of the voter, (v) the address of the voter, (vi) the date of signing and place of execution of the declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only by the City Clerk. (e) The instruction to voter form to be mailed or delivered by the City Clerk to the landowner-voters shall inform them that the official ballots shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted by 7:00 p.m. on the date of the Consolidated Special Elections; provided that if all qualified electors have voted, the elections shall be closed with the concurrence of the City Clerk. (f) Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the elections, the City Clerk shall canvass the votes cast in the Consolidated Special Elections, and shall file a statement with the City Council as to the results of such canvass and the election on each proposition set forth in the official ballot. SECTION 7. Accountability Measures. Pursuant to Section 53410 of the California Government Code, if the voters approve the proposition contained in the official ballot for the Consolidated Special Elections with respect to CFD No. 2021-1 incurring bonded indebtedness for the purposes for which such indebtedness is to be incurred (the “Bond Proposition”) and bonds of CFD No. 2021-1 are to be issued, the incurring of such bonded indebtedness and the issuance of bonds of CFD No. 2021-1 shall be subject to the following accountability measures: (a) The Bond Proposition shall identify the specific purposes for which the bonds are to be issued; (b) The proceeds of the bonds shall be applied only for the specific purposes identified in the Bond Proposition; (c) An account or accounts shall be created pursuant to the fiscal agent agreement for such bonds into which the proceeds of the sale of such bonds shall be deposited; and 14.d Packet Pg. 688 Attachment: Attachment 4 - Resolution No. 2021-44 - Resolution Calling Election [Revision 1] (7132 : Community Facilities District No. 2021-1 Resolution No. 2021-44 5 (d) The City Manager of the City or his designee, shall file a report with the City Council which shall contain the information required by Section 53411 of the California Government Code. The City Council finds that the Bond Proposition which is set forth in the official ballot for the consolidated special elections, which is attached as Exhibit “A” hereto, identifies the specific purposes for which CFD No. 2021-1 will incur bonded indebtedness and issue bonds. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 3rd day of March, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, City Clerk Attest: Sonia R. Carvalho, City Attorney 14.d Packet Pg. 689 Attachment: Attachment 4 - Resolution No. 2021-44 - Resolution Calling Election [Revision 1] (7132 : Community Facilities District No. 2021-1 6 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-44, adopted at a regular meeting held on the 3rd day of March, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2021. ______________________________ Genoveva Rocha, City Clerk 14.d Packet Pg. 690 Attachment: Attachment 4 - Resolution No. 2021-44 - Resolution Calling Election [Revision 1] (7132 : Community Facilities District No. 2021-1 A-1 EXHIBIT A OFFICIAL BALLOT CONSOLIDATED SPECIAL ELECTIONS FOR COMMUNITY FACILITIES DISTRICT NO. 2021-1 (FERREE STREET) OF THE CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO STATE OF CALIFORNIA March 3, 2021 To vote, mark a cross (+ or x) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk and obtain another. PROPOSITION A: Shall Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino, subject to accountability measures required pursuant to Government Code Section 50075.1 levy a special tax annually on taxable property within Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino, County of San Bernardino, State of California, to pay the principal of and interest on the bonds of the community facilities district which may be issued and sold for the purposes specified in the Resolution of Formation adopted by the City Council of the City of San Bernardino on March 3, 2021 (the “Resolution of Formation”), to replenish the reserve fund for the bonds, or to accumulate funds for future bond payments, including any amount required by federal law to be rebated to the United States with regard to the bonds, and to pay expenses incidental thereto, and to the levy and collection of the special tax, so long as the special tax is needed to pay the principal of and interest on the bonds and for such other purposes, at the special tax rates and pursuant to the method of apportioning the special tax set forth in Exhibit A to the Resolution of Formation adopted by the City Council of the City of San Bernardino on March 3, 2021? YES NO PROPOSITION B: Shall Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino, subject to accountability measures required pursuant to Government Code Sections 53410 and 53411, incur a bonded indebtedness for Community Facilities District No. 2021-1 (Ferree Street) in an amount not to exceed $4,000,000 for the specific purposes set forth in the Resolution of Formation adopted by the City Council of the City of San Bernardino on March 3, 2021? YES NO 14.e Packet Pg. 691 Attachment: Attachment 5 - Exhibit A (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) A-2 PROPOSITION C: Shall Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino, County of San Bernardino, State of California establish an annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, in the amount of $4,000,000? YES NO PROPOSITION A IS SUBJECT TO THE ACCOUNTABILITY MEASURES PRESCRIBED IN SECTION 50075 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA. PROPOSITION B IS SUBJECT TO THE ACCOUNTABILITY MEASURES PRESCRIBED IN SECTIONS 53410 AND 53411 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA. 14.e Packet Pg. 692 Attachment: Attachment 5 - Exhibit A (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) Resolution No. 2021-45 RESOLUTION NO. 2021-45 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA DECLARING THE RESULTS OF THE CONSOLIDATED SPECIAL ELECTIONS WITHIN COMMUNITY FACILITIES DISTRICT NO. 2021-1 (FERREE STREET) WHEREAS, on March 3, 2021, the City Council (the “City Council”) of the City of San Bernardino (the “City”) adopted a resolution determining the necessity for Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino, County of San Bernardino, State of California (the “CFD No. 2021-1”), to incur a bonded indebtedness for CFD No. 2021-1 for the purposes of providing certain public facilities and calling a special election for CFD No. 2021-1 on the proposition for incurring such bonded indebtedness for March 3, 2021, and providing for the consolidation of said election with the election on the propositions with respect to (i) the annual levy of special taxes on taxable property within CFD No. 2021 -1 to pay principal of and interest on such bonds, and (ii) establishing an appropriations limit for CFD No. 2021-1; and WHEREAS, on March 3, 2021, the City Council also adopted a resolution calling a special election for March 3, 2021, for submitting to the qualified electors of CFD No. 2021-1 the proposition with respect to the annual levy of special taxes on taxable property within CFD No. 2021-1 to pay the principal of and interest on the bonds thereof and the proposition with respect to establishing an appropriations limit for CFD No. 2021-1, and providing for the consolidation of that election with the election on the proposition of CFD No. 2021-1 incurring a bonded indebtedness (the “Election Resolution”); and WHEREAS, the City Council has received a statement from the City Clerk (the “City Clerk”), who pursuant to the Election Resolution was authorized to conduct the consolidated special elections for CFD No. 2021-1 and act as the election official therefor, with respect to the canvass of the ballots returned and the results of the consolidated special elections, certifying that more than two-thirds of the votes cast upon the propositions submitted to the voters in the consolidated special elections in CFD No. 2021-1 were cast in favor of all such propositions. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Findings. The City Council finds that: (i) there were no persons registered to vote within the boundaries of CFD No. 2021 -1 at the time of the close of the protest hearing on March 3, 2021, and pursuant to Section 53326 of the California Government Code (“Section 53326”) the vote in the consolidated special elections for CFD No. 2021-1 was, therefore, to be by the landowners owning land within CFD No. 2021-1, with each landowner having one vote for each acre or portion of an acre of land that he or she owned within CFD No. 2021-1 which would have been subject to the special tax if levied at the time of the consolidated special elections; (ii) pursuant to Section 53326 and the Election Resolution, the City Clerk distributed the ballot for the consolidated special elections to ICO Fund VI, LLC, the owner of all of the taxable property included within the boundaries of CFD No. 2021-1 (the “Property Owner”) by 14.f Packet Pg. 693 Attachment: Attachment 6 - Resolution No. 2021-45 - Resolution Declaring Results of the Election [Revision 1] (7132 : Community Facilities Resolution No. 2021-45 2 mail or personal delivery; (iii) the Property Owner waived the time limits for holding the consolidated special elections and the election dates specified in Section 53326, and consented to the calling and holding of the consolidated special elections on March 3, 2021; (iv) the consolidated special elections have been properly conducted in accordance with all statutory requirements and the provisions of the Election Resolution; (v) pursuant to Section 53326, the Property Owner, which owns approximately 9.66 acres in CFD No. 2021-1, was entitled to a total of 7 votes; (vi) the ballot was returned by the Property Owner to the City Clerk prior to the hour on the date of the election specified by the City Council for the return of voted ballots; (vii) the ballot returned to the City Clerk by the Property Owner voted all votes to which it was entitled in favor of all propositions set forth therein; (viii) more than two-thirds of the votes cast in the consolidated special elections in CFD No. 2021-1, on each such proposition were cast in favor thereof, and pursuant to Sections 53328, 53329 and 53355 of the California Government Code, all such propositions carried; (ix) the City Council, as the legislative body of CFD No. 2021-1, is therefore authorized to take the necessary action to have CFD No. 2021 -1 incur a bonded indebtedness in an amount not to exceed $4,000,000, to annually levy special taxes on taxable property within CFD No. 2021-1, in an amount sufficient to pay the principal of and interest on such bonds, and (x) an appropriations limit for CFD No. 2021-1 has been established in the amount of $4,000,000. SECTION 2. Declaration of Results. All votes voted in the consolidated special elections on the propositions with respect to (i) CFD No. 2021-1 incurring a bonded indebtedness in an amount not to exceed $4,000,000; (ii) the annual levy of special taxes on taxable property within CFD No. 2021-1 to pay the principal of and interest on the bonds of CFD No. 2021-1; and (iii) establishing an appropriations limit for CFD No. 2021-1 in the amount of $4,000,000 were voted in favor thereof, and all such propositions carried. The aggregate principal amount of the bonded indebtedness to be incurred by CFD No. 2021-1 shall not exceed $4,000,000. SECTION 3. Effect of Elections. The effect of the results of the consolidated special elections, as specified in Section 2 hereof, is that the City Council, as the legislative body of CFD No. 2021-1, is authorized (i) to have CFD No. 2021-1 incur a bonded indebtedness in and for the purposes set forth in Proposition A of the Official Ballot for the consolidated special elections for CFD No. 2021-1; (ii) after CFD No. 2021-1 has incurred a bonded indebtedness and issued bonds therefor, to annually levy special taxes on taxable property within CFD No. 2021-1 in an amount sufficient to pay the principal of and interest on such bonds at the special tax rates and pursuant to the methodology for determining and apportioning such special taxes which are set forth in Exhibit A to the Resolution of Formation adopted by the City Council of the City of San Bernardino on March 3, 2021; and (iii) an appropriations limit has been established for CFD No. 2021-1 in the amount of $4,000,000. SECTION 4. Notice of Special Tax Lien. The City Clerk shall record a notice of special tax lien pursuant to Section 53328.3 of the California Government Code and Section 3114.5 of the California Streets and Highways Code. 14.f Packet Pg. 694 Attachment: Attachment 6 - Resolution No. 2021-45 - Resolution Declaring Results of the Election [Revision 1] (7132 : Community Facilities Resolution No. 2021-45 3 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 3rd day of March, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, City Clerk Attest: Sonia R. Carvalho, City Attorney 14.f Packet Pg. 695 Attachment: Attachment 6 - Resolution No. 2021-45 - Resolution Declaring Results of the Election [Revision 1] (7132 : Community Facilities Resolution No. 2021-45 4 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-45, adopted at a regular meeting held on the 3rd day of March, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2021. ______________________________ Genoveva Rocha, City Clerk 14.f Packet Pg. 696 Attachment: Attachment 6 - Resolution No. 2021-45 - Resolution Declaring Results of the Election [Revision 1] (7132 : Community Facilities 55600.00911\33657810.1 ORDINANCE NO. MC-1555 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2021-1 (FERREE STREET), AUTHORIZING THE LEVY OF SPECIAL TAXES IN SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, the City Council of the City of San Bernardino, California (the “City Council”), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors authorizing the levy of special taxes in the community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1. Division 2, Title 5 of the Government Code of the State of California (the “Act”). This community facilities district shall hereinafter be referred to as Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino, State of California (the “District”). THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2021-1 (FERREE STREET), DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. This City Council does, by the passage of this ordinance, authorize the levy of special taxes on taxable properties located in the District pursuant to the Rate and Method of Apportionment for the District as set forth in Exhibit A attached hereto and incorporated herein by this reference (the “Rate and Method”). SECTION 2. This City Council, acting as the legislative body of the District, is hereby further authorized, by resolution, to annually determine the special tax to be levied within the District for the then current tax year or future tax years; provided, however, the special tax to be levied shall not exceed the maximum special tax authorized to be levied pursuant to the Rate and Method. SECTION 3. The special taxes herein authorized to be levied, to the extent possible, shall be collected in the same manner and at the same time as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes; provided, however, the District may utilize a direct billing procedure for any special taxes that cannot be collected on the County of San Bernardino tax roll or may, by resolution, elect to collect the 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. SECTION 4. The special taxes authorized to be levied shall be secured by the lien imposed pursuant to Section 3114.5 and 3115.5 of the California Streets and Highways Code, which lien shall be a continuing lien and shall secure each levy of the special taxes. The lien of 14.g Packet Pg. 697 Attachment: Attachment 7 - Ordinance No. MC-1555 [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation 55600.00911\33657810.1 2 the Special Tax (as defined in the Rate and Method) shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied and canceled in accordance with law or until the Special Tax ceases to be levied by the City Council. SECTION 5. This Ordinance shall be effective thirty (30) days after its adoption. Within fifteen (15) days after its adoption, the City Clerk shall cause this Ordinance, or a summary of it, to be published in a newspaper of general circulation in the City. Introduced at a regular meeting of the City Council of the City of San Bernardino, California, on March 3, 2021. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 17th day of March, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, City Clerk Attest: Sonia R. Carvalho, City Attorney 14.g Packet Pg. 698 Attachment: Attachment 7 - Ordinance No. MC-1555 [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation 55600.00911\33657810.1 3 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, City Clerk, hereby certify that the attached is a true copy of Ordinance No. MC-1555, which was regularly introduced at a regular meeting of the City Council of the City of San Bernardino duly held on the 3rd day of March, 2021, and was adopted at a regular meeting of the City Council duly held on the 17th day of March, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2021. ______________________________ Genoveva Rocha, City Clerk 14.g Packet Pg. 699 Attachment: Attachment 7 - Ordinance No. MC-1555 [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation 55600.00911\33657810.1 A-1 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR COMMUNITY FACILITIES DISTRICT NO. 2021-1 (FERREE STREET) OF THE CITY OF SAN BERNARDINO A Special Tax (all capitalized terms not otherwise defined herein are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino ("CFD No. 2021-1"). The amount of Special Tax to be levied in each Fiscal Year, on an Assessor’s Parcel, shall be determined by the City Council of the City of San Bernardino, acting in its capacity as the legislative body of CFD No. 2021-1 by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre” or “Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Tit le 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2021-1: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes A to the Trustee; the costs of the Trustee (including l egal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2021 -1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2021-1 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2021-1 and any major property owner associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2021-1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2021 -1 for any other administrative purposes of CFD No. 2021-1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. 14.g Packet Pg. 700 Attachment: Attachment 7 - Ordinance No. MC-1555 [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation 55600.00911\33657810.1 A-2 "Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit on or before June 1st preceding the Fiscal Year in which the Special Tax is being levied. "Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number. "Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number. "Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification. "Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Tax within CFD No. 2021-1 have been pledged. "Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD. "Building Permit" means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include expired or cancelled building permits, or any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses. "Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. “CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes. 14.g Packet Pg. 701 Attachment: Attachment 7 - Ordinance No. MC-1555 [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation 55600.00911\33657810.1 A-3 "CFD” or “CFD No. 2021-1" means Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino established by the City under the Act. “City” means the City of San Bernardino, State of California. "City Council" means the City Council of the City of San Bernardino, acting as the Legislative Body of CFD No. 2021-1, or its designee. “Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 4200 et seq. "County" means the County of San Bernardino, State of California. "Developed Property" means all Assessor’s Parcels of Taxable Property that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) a Building Permit for new construction was issued on or before June 1st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F. "Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) o or recordation of a Condominium Plan pursuant to California Civil Code Section 4200 et seq. that creates individual lots for which Building Permits may be issued without further subdivision. "Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th. “Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1 of Section D. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2021-1 in any Fiscal Year on any Assessor’s Parcel. “Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit(s) was issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. 14.g Packet Pg. 702 Attachment: Attachment 7 - Ordinance No. MC-1555 [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation 55600.00911\33657810.1 A-4 "Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1. “Proportionately” means for Taxable Property for Special Tax that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property or Provisional Undeveloped Property. "Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section F. "Residential Property" means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. “Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property on an Assessor’s Parcel. "Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2021-1 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or replenish any reserve funds established under the Indenture in association with the Bonds to the extent that replenishment has not been included in the computation of the Special Tax Requirement in a previous Fiscal Year, (v) to cure any delinquencies in the amount of principal or interest on the Bonds that occurred in a previous Fiscal Year, and (vi) the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2021-1 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Undeveloped Property as set forth in Step Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture. "Taxable Property" means all Assessor’s Parcels within CFD No. 2021-1, which are not Exempt Property. “Taxable Unit” means either a Residential Unit or an Acre. 14.g Packet Pg. 703 Attachment: Attachment 7 - Ordinance No. MC-1555 [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation 55600.00911\33657810.1 A-5 "Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision. “Trustee” means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, Provisional Undeveloped Property. B. SPECIAL TAX Commencing Fiscal Year 2021-2022 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax to fund the Special Tax Requirement. C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX Each Fiscal Year, beginning with Fiscal Year 2021-2022, each Assessor’s Parcel within CFD No. 2021-1 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property. Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non-Residential Property. Each Assessor’s Parcel of Residential Property shall further be classified as a Single Family Residential Property or Multifamily Property. Each Assessor’s Parcel of Single Family Residential Property shall be further assigned to a Land Use Category based on its Building Square Footage. In the event that there are parent Assessor’s Parcel(s) for which one or more Building Permits have been issued and the County has not yet assigned final Assessor’s Parcel Number(s) to the lots on which the Residential Unit(s) have been or will be built (in accordance with the Final Map or Condominium Plan) on such parent Assessor’s Parcel, the amount of the Special Tax on such parent Assessor’s Parcel shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax levy for such Assessor’s Parcel, based on the classification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall be determined based on the Developed Property Special Tax rates and such amounts shall be levied as Developed Property in accordance with Step 1 and, if applicable, Step 4 of Section E below; and (3) the amount of the Special Tax levy on the Taxable Property in such Assessor’s Parcel not subject to the Special Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on Undeveloped Property pursuant to Step 3 of Section E below, multiplied by the total of the amount determined in clause (1), less (B) the amount determined in clause (2). 14.g Packet Pg. 704 Attachment: Attachment 7 - Ordinance No. MC-1555 [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation 55600.00911\33657810.1 A-6 D. MAXIMUM SPECIAL TAX 1. Developed Property The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property in any Fiscal Year shall be the greater of (i) the Assigned Special Tax or (ii) the Backup Special Tax. The Maximum Special Tax for each Assessor’s Parcel of Non -Residential Property and Multifamily Property shall be the applicable Assigned Special Tax described in Tab le 1 of Section D. a. Assigned Special Tax Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or Non-Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property for Fiscal Year 2021-2022 shall be determined pursuant to Table 1 below. TABLE 1 ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY FISCAL YEAR 2021-2022 Land Use Category Taxable Unit Building Square Footage Assigned Special Tax Per Taxable Unit 1. Single Family Residential Property RU Less than 1,850 sq. ft $2,266 2. Single Family Residential Property RU 1,850 sq. ft to 2,000 sq. ft $2,366 3. Single Family Residential Property RU Greater than 2,000 sq. ft $2,433 4. Multifamily Property Acre N/A $39,394 5. Non-Residential Property Acre N/A $39,394 b. Multiple Land Use Categories In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Type. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for each Taxable Unit for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final. 14.g Packet Pg. 705 Attachment: Attachment 7 - Ordinance No. MC-1555 [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation 55600.00911\33657810.1 A-7 c. Backup Special Tax The Backup Special Tax for an Assessor’s Parcel within a Final Map classified as Single Family Residential Property shall be calculated according to the following formula. B = (U x A) / L The terms above have the following meanings: B = Backup Special Tax per Assessor’s Parcel classified as Single Family Residential Property within the Final Map. U = Maximum Special Tax per Acre of Undeveloped Property per Section D.3 below. A = Acreage of Single Family Residential Property that exists or is expected to exist in such Final Map at the time of calculation, as determined by the Administrator. L = Number of Assessor’s Parcels of Single Family Residential Property expected to exist after build out in such Final Map at the time of calculation, as determined b y the Administrator. In the event any portion of the Final Map is changed or modified, the Backup Special Tax for all Assessor’s Parcels within such changed or modified area shall be $39,394 per Acre. Notwithstanding the foregoing, the Backup Special Tax for an Assessor’s Parcel of Developer Property for which a certificate of occupancy has been granted may not be revised. In the event any superseding Final Map is recorded as a Final Map within the boundaries of the CFD, the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be $39,394 per Acre. The Backup Special Tax shall not apply to Multifamily Residential Property or Non- Residential Property. 2. Approved Property The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Single Family Property shall be the Backup Special Tax computed pursuant to Section D.1.c above. The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Multifamily Residential Property or Non-Residential Property shall be $39,394 per Acre. 3. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional Undeveloped Property shall be $39,394 per Acre. 14.g Packet Pg. 706 Attachment: Attachment 7 - Ordinance No. MC-1555 [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation 55600.00911\33657810.1 A-8 E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing Fiscal Year 2021-2022 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps: Step One: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rates in Table 1 to satisfy the Special Tax Requirement. Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement. Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Annual Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement. Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special Tax Requirement. Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement. Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default. F. EXEMPTIONS The City shall classify as Exempt Property, in the chronological order in which the property becomes exempt, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or 14.g Packet Pg. 707 Attachment: Attachment 7 - Ordinance No. MC-1555 [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation 55600.00911\33657810.1 A-9 restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, or (vi) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than 6.38 Acres. Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 6.38 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 6.38 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E. G. PREPAYMENT OF SPECIAL TAX The following additional definitions apply to this Section G: “CFD Public Facilities” means $$2,558,800 expressed in 2021 dollars, which shall increase by the Construction Inflation Index on July 1, 2022, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the public facilities under the authorized bonding program for CFD No. 2021-1, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Tax levied under this Rate and Method of Apportionment. “Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible under CFD No. 2021-1. “Construction Inflation Index” means the annual percentage change in the Engineering News- Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be pub lished, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the CFD Public Facilities minus public facility costs available to be funded, or that were funded, through existing construction or escrow accounts or funded by the Outstanding Bonds or Special Taxes, and minus public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment. “Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax. 14.g Packet Pg. 708 Attachment: Attachment 7 - Ordinance No. MC-1555 [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation 55600.00911\33657810.1 A-10 1. Prepayment in Full The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Approved or Undeveloped Property for which a Building Permit has not been issued, and (iv) Assessor’s Parcels of Provisional Undeveloped Property. The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non -refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes. The Prepayment Amount shall be calculated as follows (some capitalized terms are defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Amount plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit Equals: Prepayment Amount The Prepayment Amount shall be determined as of the proposed prepayment date as follows: 1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel. 2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. Fo r an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, or Provisional Undeveloped Property to be prepaid, compute the Maximum Special Tax for the Assessor’s Parcel. 3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied the Maximum Special Tax assuming build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for 14.g Packet Pg. 709 Attachment: Attachment 7 - Ordinance No. MC-1555 [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation 55600.00911\33657810.1 A-11 Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid. 4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”). 5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”). 6. Determine the Future Facilities Costs. 7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel (the “Future Facilities Amount”). 8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments. 9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year which have not yet been paid. 10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount. 11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”). 12. Verify the administrative fees and expenses of the CFD, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”). 13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. 14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit. 14.g Packet Pg. 710 Attachment: Attachment 7 - Ordinance No. MC-1555 [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation 55600.00911\33657810.1 A-12 15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD. The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments. As a result of the payment of the current Fiscal Year’s Special Tax levy as determined purs uant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses. Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the City Council. 2. Prepayment in Part The Maximum Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section G.1 shall be modified as provided by the following formula: PP = ((PE –A) x F) +A These terms have the following meaning: PP = Partial Prepayment Amount PE = the Prepayment Amount calculated according to Section G.1 F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Maximum Special Tax obligation A = the Administrative Fees and Expenses determined pursuant to Section G.1 The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent 14.g Packet Pg. 711 Attachment: Attachment 7 - Ordinance No. MC-1555 [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation 55600.00911\33657810.1 A-13 to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the am ount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment Amount for the Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of Special Tax obligation will continue on the Assessor’s Parcel pursuant to Section E. H. TERMINATION OF SPECIAL TAX For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax. The Special Tax shall cease not later than the 2061-2062 Fiscal Year, however, Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2021-1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2021-1 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Tax remain uncollected and (iv) all other obligations of CFD No. 2021-1 have been satisfied. I. MANNER OF COLLECTION The Special Tax shall be collected in the same manner and at the same tim e as ordinary ad valorem property taxes, provided, however, that CFD No. 2021-1 may collect Special Tax at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act. J. APPEALS OF SPECIAL TAXES Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD 14.g Packet Pg. 712 Attachment: Attachment 7 - Ordinance No. MC-1555 [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation 55600.00911\33657810.1 A-14 Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Assessor’s Parcel(s). No refunds of previously paid Special Taxes shall be made. The CFD Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as herein specified. 14.g Packet Pg. 713 Attachment: Attachment 7 - Ordinance No. MC-1555 [Revision 1] (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation CITY OF SAN BERNARDINO Public Hearing Report CFD NO. 2021-1 (FERREE STREET) MARCH 3, 2021 14.h Packet Pg. 714 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) Table of Contents Sections Page _____________________________________________ 1 Introduction ________________________________________________ 1 2 Description of Facilities ______________________________________________ 2 3 Cost Estimate ________________________________________________ 3 4 Proposed Development _____________________________________________ 4 5 Rate and Method of Apportionment ____________________________________ 5 6 Certifications ________________________________________________ 6 Tables Page 3-1 Cost Estimate ________________________________________________ 3 Appendices Page _____________________________________________ A Rate and Method of Apportionment _____________________________________ B Boundary Map _________________________________________________ C Resolution of Intention _______________________________________________ 14.h Packet Pg. 715 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 1 Introduction Page | 1 City of San Bernardino CFD No. 2021-1 (Ferree St) Public Hearing Report Background On January 20, 2021, the Mayor and City Council of the City of San Bernardino (the “City”), adopted a Resolution of Intention to form Community Facilities District No. 2021-1 (Ferree St) of the City of San Bernardino (the “CFD No. 2021-1” or “District”), Resolution No. 2021-___, pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, (the “Act”). The CFD No. 2021-1 is currently comprised of Tract Map No. 20293 that includes one undeveloped parcel and approximately 9.66 gross acres. The proposed development includes 96 detached single family detached homes. The property is generally located north of I-10, south of Sycamore Lane between Ferree Street and Richardson Street. For a map showing the boundaries of CFD No. 2021-1 please see Appendix B. Purpose of Public Hearing Report WHEREAS, this Community Facilities District Report (“Report”) is being provided to the City Council and generally contains the following: 1. A brief description of CFD No. 2021-1; 2. A brief description of the Facilities and Services required at the time of formation to meet the needs of CFD No. 2021-1. 3. A brief description of the Boundaries of CFD No. 2021-1; and 4. An estimate of the cost of financing the bonds used to pay for the Facilities, including all costs associated with formation of the District, issuance of bonds, determination of the amount of any special taxes, collection of any special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the City with respect to the District, and any other incidental expenses to be paid through the proposed financing. For particulars, reference is made to the Resolution of Intention as previously approved and adopted and is included in Appendix C. 14.h Packet Pg. 716 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 2 Description of Facilities Page | 2 City of San Bernardino CFD No. 2021-1 (Ferree St) Public Hearing Report NOW, THEREFORE, the undersigned, authorized representative of Spicer Consulting Group, LLC, the appointed responsible officer, or person directed to prepare the Public Hearing Report, does hereby submit the following data: Facilities A Community Facilities District may pay for facilities which may include all amounts necessary to eliminate any fixed special assessment liens or to pay, repay, or defease any obligation to pay for any indebtedness secured by any tax, fee, charge, or assessment levied, provide for the purchase, construction, expansion, or rehabilitation for any real or other tangible property with an estimated useful life of five (5) years or longer, which is necessary to meet increased demands placed upon local agencies as a result of development and/or rehabilitation occurring within the District. The types of facilities that are proposed by CFD No. 2021-1 and financed with the proceeds of special taxes and bonds issued by CFD No. 2021-1 consist of the construction, purchase, modification, expansion and/or improvement of (i) drainage, park, roadway, water and sewer, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended (the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including: a) The cost of engineering, planning and designing the Facilities; and b) All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and c) Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities. Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of Special Taxes for the District. Incidental Expenses The Incidental Expenses to be paid from bond proceeds and/or special taxes include: All costs associated with the creation of CFD No. 2021-1, the issuance of bonds, the determination of the amount of special taxes to be levied, costs incurred in order to carry out the authorized purposes of CFD No. 2021-1, including legal fees, fees of consultants, engineering, planning, designing and the annual costs to administer CFD No. 2021-1 and any obligations. The description of the eligible public facilities, services and incidental expenses above are preliminary and general in nature. The final plans and specifications approved by the applicable public agency may show substitutes or modifications in order to accomplish the work or serve the new development and any such substitution or modification shall not constitute a change or modification in the proceedings relating to CFD No. 2021-1. Bond Authorization Amounts The maximum authorized bonded indebtedness is $4,000,000 for CFD No. 2021-1. 14.h Packet Pg. 717 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 3 Cost Estimate Page | 3 City of San Bernardino CFD No. 2021-1 (Ferree St) Public Hearing Report Below is the estimated cost of facilities to be provided to the District. a) The cost estimate of facilities, including incidental expenses, to be financed through the issuance of CFD No. 2021- 1 Bonds is estimated to be $3,100,000 based upon current dollars (Fiscal Year 2021-22). b) The total facilities eligible to be funded by bond proceeds is $2,557,199, a summary of the facilities is detailed in the table below. c) Pursuant to Section 53340 of the Act, the proceeds of any special tax levied and collected by CFD No. 2021-1 may be used only to pay for the cost of providing public facilities, services, and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual costs associated with determination of the amount of special taxes, collection of special taxes, payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District. The incidental expenses associated with the annual administration of CFD No. 2021-1 are estimated to be $25,000. However, it is anticipated that the incidental expenses will vary due to inflation and other factors that may not be foreseen today, and the actual incidental expenses may exceed these amounts accordingly. Table 3-1 Cost Estimate Facilities Total Bond Allocation(1) City Facilities Local Circulation Fee $22,368 $22,368 Regional Circulation Fee $233,760 $233,760 Storm Drain Fee $376,896 $376,896 Parkland and Open Space Fee $913,715 $913,715 Sewer Connection Fee (3 Bedroom Units) $81,900 $81,900 Sewer Connection Fee (4 Bedroom Units) $52,080 $52,080 Sewer Capacity Charge $336,000 $336,000 Water Capacity Fee $540,480 $540,480 Total City $2,557,199 $2,557,199 Total Eligible Fees/Improvements $2,557,199 $2,557,199 Incidental Financing Costs $542,801 Total Funded by Bond Proceeds $3,100,000 Total Fees/Improvements to be Funded by Developer $0 (1) Amounts are allocated based upon estimated bond sizing and may change abased upon market conditions at the time of bond issuance. 14.h Packet Pg. 718 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 4 Proposed Development Page | 4 City of San Bernardino CFD No. 2021-1 (Ferree St) Public Hearing Report The CFD No. 2021-1 includes approximately 9.66 gross acres on one undeveloped property within Tract 20293. The District is generally located north of I-10, south of Sycamore Lane between Ferree Street and Richardson Street. As of Fiscal Year 2021-22 the proposed CFD No. 2021-1 includes the following Assessor's Parcel Number: 0281-161-48. A map showing the boundaries of CFD No. 2021-1 is included in Appendix B. 14.h Packet Pg. 719 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 5 Rate and Method of Apportionment Page | 5 City of San Bernardino CFD No. 2021-1 (Ferree St) Public Hearing Report The Rate and Method of Apportionment allows each property owner within CFD No. 2021-1 to estimate the annual Special Tax amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method”). The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the CFD Administrator may directly bill the Special Taxes, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations, and provided further that CFD No. 2021-1 may covenant to foreclose and may actually foreclose on parcels having delinquent Special Taxes as permitted by the Act. All of the property located within CFD No. 2021-1, unless exempted by law or by the Rate and Method proposed for CFD No. 2021-1, shall be taxed for the purpose of providing necessary facilities to serve the District. The Boundary Map for CFD No. 2021-1 is attached hereto as Appendix B. Pursuant to Section 53325.3 of the Act, the tax imposed “is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The Special Tax may be based on the benefit received by property, the cost of making facilities or authorized services available or other reasonable basis as determined by the City, although the Special Tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution. A property owner within the District may choose to prepay in whole or in part the Special Tax. The available method for so doing is described in Section G of the Rate and Method (“Prepayment of Special Tax”). The Rate and Method includes special tax rates ranging from $2,266 to $2,433 per Residential Unit for Single Family Residential Property and $39,394 per Acre for Multifamily Property for Fiscal Year 2021-2022. For each year that any Bonds are outstanding the Special Tax shall be levied on all parcels subject to the Special Tax. If any delinquent Special Taxes remain uncollected prior to or after all Bonds are retired, the Special Tax may be levied to the extent necessary to reimburse CFD No. 2021-1 for uncollected Special Taxes associated with the levy of such Special Taxes, but the Special Tax shall not be levied after 2061-2062 Fiscal Year. For particulars as to the Rate and Method for CFD No. 2021-1, see the attached and incorporated in Appendix A. 14.h Packet Pg. 720 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 6 Certifications Page | 6 City of San Bernardino CFD No. 2021-1 (Ferree St) Public Hearing Report Based on the information provided herein, it is my opinion that the described facilities and services herein are those that are necessary to meet increased demands placed upon the City of San Bernardino as a result of development occurring within the CFD No. 2021-1 and benefits the lands within said CFD No. 2021-1. Further, it is my opinion that the special tax rates and method of apportionment, as set forth herein, are fair and equitable, uniformly applied and not discriminating or arbitrary. Date: March 3, 2021 SPICER CONSULTING GROUP, LLC __________________________ SHANE SPICER SPECIAL TAX CONSULTANT FOR CITY OF SAN BERNARDINO SAN BERNARDINO COUNTY STATE OF CALIFORNIA 14.h Packet Pg. 721 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) APPENDIX A Rate and Method of Apportionment 14.h Packet Pg. 722 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) City of San Bernardino Community Facilities District No. 2021‐1 (Ferree Street) Page 1 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR COMMUNITY FACILITIES DISTRICT NO. 2021‐1 (FERREE STREET) OF THE CITY OF SAN BERNARDINO A Special Tax (all capitalized terms not otherwise defined herein are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of Community Facilities District No. 2021‐1 (Ferree Street) of the City of San Bernardino ("CFD No. 2021‐1"). The amount of Special Tax to be levied in each Fiscal Year, on an Assessor’s Parcel, shall be determined by the City Council of the City of San Bernardino, acting in its capacity as the legislative body of CFD No. 2021‐1 by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre” or “Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello‐Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2021‐1: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes A to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2021‐1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2021‐1 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2021‐1 and any major property owner associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2021‐1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2021‐1 for any other administrative purposes of CFD No. 2021‐1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit on or before June 1st preceding the Fiscal Year in which the Special Tax is being levied. 14.h Packet Pg. 723 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) City of San Bernardino Community Facilities District No. 2021‐1 (Ferree Street) Page 2 "Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number. "Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number. "Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification. "Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long‐term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long‐term contracts, or any refunding thereof, to which Special Tax within CFD No. 2021‐1 have been pledged. "Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD. "Building Permit" means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include expired or cancelled building permits, or any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses. "Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. “CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes. "CFD” or “CFD No. 2021‐1" means Community Facilities District No. 2021‐1 (Ferree Street) of the City of San Bernardino established by the City under the Act. “City” means the City of San Bernardino, State of California. "City Council" means the City Council of the City of San Bernardino, acting as the Legislative Body of CFD No. 2021‐1, or its designee. “Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 4200 et seq. "County" means the County of San Bernardino, State of California. 14.h Packet Pg. 724 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) City of San Bernardino Community Facilities District No. 2021‐1 (Ferree Street) Page 3 "Developed Property" means all Assessor’s Parcels of Taxable Property that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) a Building Permit for new construction was issued on or before June 1st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F. "Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) o or recordation of a Condominium Plan pursuant to California Civil Code Section 4200 et seq. that creates individual lots for which Building Permits may be issued without further subdivision. "Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th. “Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1 of Section D. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2021‐1 in any Fiscal Year on any Assessor’s Parcel. “Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator. "Non‐Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit(s) was issued for a non‐residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non‐Residential Property. "Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1. “Proportionately” means for Taxable Property for Special Tax that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property or Provisional Undeveloped Property. "Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be 14.h Packet Pg. 725 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) City of San Bernardino Community Facilities District No. 2021‐1 (Ferree Street) Page 4 classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section F. "Residential Property" means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. “Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property on an Assessor’s Parcel. "Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2021‐1 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or replenish any reserve funds established under the Indenture in association with the Bonds to the extent that replenishment has not been included in the computation of the Special Tax Requirement in a previous Fiscal Year, (v) to cure any delinquencies in the amount of principal or interest on the Bonds that occurred in a previous Fiscal Year, and (vi) the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2021‐1 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Undeveloped Property as set forth in Step Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture. "Taxable Property" means all Assessor’s Parcels within CFD No. 2021‐1, which are not Exempt Property. “Taxable Unit” means either a Residential Unit or an Acre. "Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision. “Trustee” means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, Provisional Undeveloped Property. B. SPECIAL TAX Commencing Fiscal Year 2021‐2022 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax to fund the Special Tax Requirement. C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX Each Fiscal Year, beginning with Fiscal Year 2021‐2022, each Assessor’s Parcel within CFD No. 2021‐1 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable 14.h Packet Pg. 726 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) City of San Bernardino Community Facilities District No. 2021‐1 (Ferree Street) Page 5 Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property. Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non‐ Residential Property. Each Assessor’s Parcel of Residential Property shall further be classified as a Single Family Residential Property or Multifamily Property. Each Assessor’s Parcel of Single Family Residential Property shall be further assigned to a Land Use Category based on its Building Square Footage. In the event that there are parent Assessor’s Parcel(s) for which one or more Building Permits have been issued and the County has not yet assigned final Assessor’s Parcel Number(s) to the lots on which the Residential Unit(s) have been or will be built (in accordance with the Final Map or Condominium Plan) on such parent Assessor’s Parcel, the amount of the Special Tax on such parent Assessor’s Parcel shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax levy for such Assessor’s Parcel, based on the classification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall be determined based on the Developed Property Special Tax rates and such amounts shall be levied as Developed Property in accordance with Step 1 and, if applicable, Step 4 of Section E below; and (3) the amount of the Special Tax levy on the Taxable Property in such Assessor’s Parcel not subject to the Special Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on Undeveloped Property pursuant to Step 3 of Section E below, multiplied by the total of the amount determined in clause (1), less (B) the amount determined in clause (2). D. MAXIMUM SPECIAL TAX 1. Developed Property The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property in any Fiscal Year shall be the greater of (i) the Assigned Special Tax or (ii) the Backup Special Tax. The Maximum Special Tax for each Assessor’s Parcel of Non‐Residential Property and Multifamily Property shall be the applicable Assigned Special Tax described in Table 1 of Section D. a. Assigned Special Tax Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or Non‐Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property for Fiscal Year 2021‐2022 shall be determined pursuant to Table 1 below. 14.h Packet Pg. 727 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) City of San Bernardino Community Facilities District No. 2021‐1 (Ferree Street) Page 6 TABLE 1 ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY FISCAL YEAR 2021‐2022 Land Use Category Taxable Unit Building Square Footage Assigned Special Tax Per Taxable Unit 1. Single Family Residential Property RU Less than 1,850 sq. ft $2,266 2. Single Family Residential Property RU 1,850 sq. ft to 2,000 sq. ft $2,366 3. Single Family Residential Property RU Greater than 2,000 sq. ft $2,433 4. Multifamily Property Acre N/A $39,394 5. Non‐Residential Property Acre N/A $39,394 b. Multiple Land Use Categories In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Type. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for each Taxable Unit for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final. c. Backup Special Tax The Backup Special Tax for an Assessor’s Parcel within a Final Map classified as Single Family Residential Property shall be calculated according to the following formula. B = (U x A) / L The terms above have the following meanings: B = Backup Special Tax per Assessor’s Parcel classified as Single Family Residential Property within the Final Map. U = Maximum Special Tax per Acre of Undeveloped Property per Section D.3 below. A = Acreage of Single Family Residential Property that exists or is expected to exist in such Final Map at the time of calculation, as determined by the Administrator. L = Number of Assessor’s Parcels of Single Family Residential Property expected to exist after build out in such Final Map at the time of calculation, as determined by the Administrator. In the event any portion of the Final Map is changed or modified, the Backup Special Tax for all Assessor’s Parcels within such changed or modified area shall be $39,394 per Acre. Notwithstanding the foregoing, the Backup Special Tax for an Assessor’s Parcel of Developer Property for which a certificate of occupancy has been granted may not be revised. 14.h Packet Pg. 728 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) City of San Bernardino Community Facilities District No. 2021‐1 (Ferree Street) Page 7 In the event any superseding Final Map is recorded as a Final Map within the boundaries of the CFD, the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be $39,394 per Acre. The Backup Special Tax shall not apply to Multifamily Residential Property or Non‐Residential Property. 2. Approved Property The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Single Family Property shall be the Backup Special Tax computed pursuant to Section D.1.c above. The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Multifamily Residential Property or Non‐Residential Property shall be $39,394 per Acre. 3. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional Undeveloped Property shall be $39,394 per Acre. E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing Fiscal Year 2021‐2022 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps: Step One: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rates in Table 1 to satisfy the Special Tax Requirement. Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement. Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Annual Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement. Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special Tax Requirement. Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement. 14.h Packet Pg. 729 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) City of San Bernardino Community Facilities District No. 2021‐1 (Ferree Street) Page 8 Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default. F. EXEMPTIONS The City shall classify as Exempt Property, in the chronological order in which the property becomes exempt, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, or (vi) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than 6.38 Acres. Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 6.38 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 6.38 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E. G. PREPAYMENT OF SPECIAL TAX The following additional definitions apply to this Section G: “CFD Public Facilities” means $$2,558,800 expressed in 2021 dollars, which shall increase by the Construction Inflation Index on July 1, 2022, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the public facilities under the authorized bonding program for CFD No. 2021‐1, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Tax levied under this Rate and Method of Apportionment. “Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible under CFD No. 2021‐1. “Construction Inflation Index” means the annual percentage change in the Engineering News‐Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News‐ Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the CFD Public Facilities minus public facility costs available to be funded, or that were funded, through existing construction or escrow accounts or funded by the Outstanding 14.h Packet Pg. 730 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) City of San Bernardino Community Facilities District No. 2021‐1 (Ferree Street) Page 9 Bonds or Special Taxes, and minus public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment. “Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax. 1. Prepayment in Full The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Approved or Undeveloped Property for which a Building Permit has not been issued, and (iv) Assessor’s Parcels of Provisional Undeveloped Property. The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non‐refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non‐refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes. The Prepayment Amount shall be calculated as follows (some capitalized terms are defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Amount plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit Equals: Prepayment Amount The Prepayment Amount shall be determined as of the proposed prepayment date as follows: 1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel. 2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, or Provisional Undeveloped Property to be prepaid, compute the Maximum Special Tax for the Assessor’s Parcel. 3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied the Maximum Special Tax assuming build out of all Assessor’s Parcels of 14.h Packet Pg. 731 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) City of San Bernardino Community Facilities District No. 2021‐1 (Ferree Street) Page 10 Taxable Property based on the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid. 4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”). 5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”). 6. Determine the Future Facilities Costs. 7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel (the “Future Facilities Amount”). 8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments. 9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year which have not yet been paid. 10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount. 11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”). 12. Verify the administrative fees and expenses of the CFD, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”). 13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. 14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit. 14.h Packet Pg. 732 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) City of San Bernardino Community Facilities District No. 2021‐1 (Ferree Street) Page 11 15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD. The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments. As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses. Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case‐by‐case basis as specifically approved by the City Council. 2. Prepayment in Part The Maximum Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section G.1 shall be modified as provided by the following formula: PP = ((PE –A) x F) +A These terms have the following meaning: PP = Partial Prepayment Amount PE = the Prepayment Amount calculated according to Section G.1 F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Maximum Special Tax obligation A = the Administrative Fees and Expenses determined pursuant to Section G.1 The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 14.h Packet Pg. 733 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) City of San Bernardino Community Facilities District No. 2021‐1 (Ferree Street) Page 12 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non‐refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non‐refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment Amount for the Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 ‐ F) of Special Tax obligation will continue on the Assessor’s Parcel pursuant to Section E. H. TERMINATION OF SPECIAL TAX For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax. The Special Tax shall cease not later than the 2061‐2062 Fiscal Year, however, Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2021‐1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2021‐1 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Tax remain uncollected and (iv) all other obligations of CFD No. 2021‐ 1 have been satisfied. I. MANNER OF COLLECTION The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2021‐1 may collect Special Tax at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act. J. APPEALS OF SPECIAL TAXES Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Assessor’s Parcel(s). No refunds of previously paid Special Taxes shall be made. The CFD Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as herein specified. 14.h Packet Pg. 734 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) APPENDIX B Boundary Map 14.h Packet Pg. 735 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.hPacket Pg. 736Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) APPENDIX C Resolution of Intention 14.h Packet Pg. 737 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 738 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 739 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 740 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 741 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 742 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 743 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 744 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 745 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 746 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 747 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 748 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 749 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 750 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 751 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 752 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 753 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 754 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 755 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 756 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 757 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 14.h Packet Pg. 758 Attachment: Attachment 8 - CFD Report (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 55600.00911\33505294.2 FUNDING AGREEMENT Relating to CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2021-1 (FERREE STREET) Between THE CITY OF SAN BERNARDINO and ICO FUND VI, LLC, a Delaware limited liability company January 1, 2021 14.i Packet Pg. 759 Attachment: Attachment 9 - Funding Agreement (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 55600.00911\33505294.2 1 FUNDING AGREEMENT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (FERREE STREET) OF THE CITY OF SAN BERNARDINO This FUNDING AGREEMENT (the “Agreement”) is entered into the 1st day of January, 2021 by and between the CITY OF SAN BERNARDINO, a charter city and municipal organization organized and operating under the laws of the State of California (the “City”), and ICO FUND VI, LLC, a Delaware limited liability company (“Owner”). R E C I T A L S A. Owner has purchased that certain real property located on approximately 6.38 gross acres of land within Tentative Tract Map No. 20293 including 96 residential lots, parks, basin and RV parking (the “Property”) located in the City. B. The City, is in the process of establishing a community facilities district pursuant to the provisions of Chapter 2.5 (commencing with § 53311) of Part 1 of Division 2 of Title 5 of the Government Code, commonly known as the “Mello-Roos Community Facilities Act of 1982” (the “Act”), over and including the Property for the purpose of levying special taxes (the “Special Taxes”) and selling bonds, in one or more series (the “Bonds), in an amount sufficient to finance the design, planning, engineering, installation, and construction of certain public facilities and improvements, to be owned, operated or maintained by the City (the “Public Facilities”) to satisfy the obligation of the Property and the Owner for the payment of certain fees to the City. The Public Facilities are generally described in Exhibit A attached hereto and are necessary to the development of the Property. Said community facilities district shall be known as the “Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino” (the “District”). C. Section 53313.5 of the Act provides that a community facilities district may finance the purchase of facilities completed prior to the adoption of the resolution establishing the community facilities district, and may purchase facilities completed after th e adoption of the resolution of formation establishing the community facilities district if the facilities have been constructed as if they had been constructed under the direction and supervision, or under the authority of, the local agency whose governin g body is conducting proceedings for the establishment of the community facilities district. D. The purpose of this Agreement is to provide for the levy of Special Taxes and the issuance and sale of the Bonds of the District secured by the Special Taxes to finance the design, planning, engineering, financing, installation, and construction of the Public Facilities and expenses incidental thereto. E. Capitalized terms used herein and not otherwise defined shall have the meaning set forth in Exhibit B attached hereto and by this reference herein incorporated. 14.i Packet Pg. 760 Attachment: Attachment 9 - Funding Agreement (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 55600.00911\33505294.2 2 AGREEMENTS NOW, THEREFORE, in consideration of the preceding recitals and the mutual covenants hereinafter contained, the parties agree as follows: Section 1. Establishment of District. The City shall initiate proceedings pursuant to the Act for the establishment of the District. Such proceedings include elections pursuant to Sections 53326, 53350 and 53353.5 of the Act on (i) the question of the issuance of the Bonds of the District to finance the design, planning, engineering, construction management, financing, installation and construction or acquisition of the Public Facilities, including the direct payment to the City for such Public Facilities, (ii) the question of the annual levy of the Special Taxes on those portions of the Property subject to the Special Taxes to pay directly for the Public Facilities and to pay the principal of and interest on the Bonds and the annual administrative expenses of the City in levying and collecting such Special Taxes, paying the principal and interest on such Bonds and providing for the registration, exchange and transfer of such Bonds, including the fees of fiscal agents and paying agents, and any necessary replenishment of the reserve fund for such Bonds, and (iii) the question of the establishment of an appropriations limit for the District. From time to time prior to the issuance of the Bonds, at the written request of Owner, and subject to Owner advancing funds as determined by the City as necessary to pay all costs related thereto in accordance with Section 4 below, the City shall use its reasonable best efforts to undertake proceedings which may be deemed necessary to amend the Rate and Method or to amend the boundaries of the District. Section 2. Payment of City Fees as Deposit. Owner shall timely pay or deposit with the City in full when due all City Fees. Any payment or deposit of City Fees before Special Taxes are received or proceeds of the Bonds become available, including all City Fees paid prior to the execution of this Agreement, shall be held on deposit by the City in a separate account used exclusively for City Fees (the “Deposit Account”), and shall not be expended by the City, provided, however, earnings on the investment of funds in the Deposit Account shall be returned to the City. Except as otherwise provided below, if Bonds have not been issued for a period of 36 months from the date of payment of City Fees for the first phase of production units, then the City may use any funds remaining in the Deposit Account for their lawful purposes and such funds shall be deemed by the City as the payment of the City Fees for the applicable parcels of the Property for which payment was made, provided that if Owner requests that Bonds be issued within such 36 month time frame, then the City may not use any funds remaining in the Deposit Account as provided herein until 48 months from the date of payment of City Fees for the first phase of production units. If the City uses any of the funds remaining in the Deposit Account under either of the two foregoing scenarios, the Owner, or Owner’s designee, shall be reimbursed from the proceeds of Bonds subsequently issued even if such Bonds must be issued on a taxable basis. Immediately upon the City receiving proceeds of the Bonds in accordance with this Agreement, the City shall return to Owner, or Owner’s designee, all funds held in the Deposit Account. In addition, prior to the issuance of Bonds, to the extent Special Taxes in the Special Fund are available to be disbursed for Public Facilities in accordance with Section 6(a)(3) below, an equal amount of funds held in the Deposit Account shall be returned to Owner. 14.i Packet Pg. 761 Attachment: Attachment 9 - Funding Agreement (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 55600.00911\33505294.2 3 Section 3. Sale of Bonds. Upon Owner’s written request, the City shall use its reasonable best efforts, as hereinafter provided, to issue and sell Bonds, in one or more series, in accordance with the provisions of this Agreement and the Financing District Policy. Each series of Bonds is expected to have a debt service amortization schedule matching the annual Special Taxes available for debt service pursuant to the Rate and Method and for a term of not more than forty (40) years, for the purpose of raising an amount sufficient to pay for the design, planning, engineering, construction management, financing, installation and construction or acquisition of the Public Facilities. In connection with the issuance of the first series of Bonds, the City on behalf of itself and the District shall establish criteria for the issuance of Additional Bonds which meet the criteria of the Financing District Policy. The timing of the issuance and sale of each series of Bonds, the aggregate principal amount thereof, and the terms and conditions upon which they shall be sold shall be as set forth in this Agreement and otherwise as determined by the City in its sole reasonable discretion after consultation with Owner. Not by way of limitation of the foregoing, the timing of the issuance and sale of the first series of Bonds and any Additional Bonds shall be as soon as reasonably practicable, as determined by the City in its sole reasonable discretion following consultation with its financial advisor, underwriter and other consultants and counsel after written request from Owner. Owner shall use its reasonable best efforts to cooperate with City in connection with any Bond sale. Section 4. Advance of Certain Expenses. Pursuant to a Landowner Deposit Agreement, between the City and Owner (the “Deposit Agreement”), Owner shall pay and advance all of the costs reasonably associated with the establishment of the District. Owner shall deposit funds with the City for the City’s reasonable out-of-pocket expenses associated with a sale of each series of Bonds, including, but not limited to, (i) the fees and expenses of any consultants and legal counsel to the City employed in connection with the issuance of the Bonds, including an engineer, special tax consultant, financial advisor, bond counsel and any other consultant deemed necessary or advisable by the City, (ii) the costs of appraisals, market absorption and feasibility studies and other reports deemed necessary or advisable by the City in connection with the issuance of the Bonds, (iii) the costs of publication of notices and other costs related to any proceeding undertaken in connection with the issuance of the Bonds, (iv) reasonable charges for City staff time incurred in connection with the issuance of the Bonds, including a reasonable allocation of City overhead expense, and (v) any and all other actual costs and expenses incurred by the City in connection with the issuance of the Bonds (“Reimbursable Expenses”). If the Bonds are issued by the District, the City shall reimburse Owner from proceeds of the Bonds, without interest, for the portion of the Reimbursable Expenses deposits that have been expended or encumbered, said reimbursement to be made from the proceeds of the Bonds on the date of issuance of the Bonds or as soon as reasonably possible thereafter and only to the extent otherwise permitted under the Act, and refund any unexpended o r encumbered deposited amounts. If the Special Taxes are levied and collected, the City may reimburse Owner from the receipts of Special Taxes (net of amounts required to pay District administrative expenses), without interest, for the portion of the deposits paid by Owner pursuant to the Deposit Agreement that have been expended or encumbered, said reimbursement from receipts of Special Taxes to be made on or before the end of each fiscal year; provided, however, that the City may retain such collected Special Taxes in the amounts that it deems reasonably necessary to facilitate the issuance of the Bonds. 14.i Packet Pg. 762 Attachment: Attachment 9 - Funding Agreement (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 55600.00911\33505294.2 4 The City shall keep records of all Reimbursable Expenses advanced by the City pursuant to this Section 4, which records shall be available for inspection by Owner during regular business hours. The sole source of funds for reimbursement of any advance expenditure made by the City or Owner shall be the uncommitted and unexpended payments made by Owner to the City, proceeds of the Bonds, or Special Tax receipts as determined by the City. Section 5. Tax Requirements. The timing of the sale of each series of Bonds, the nature of the investments in which the proceeds of the Bonds shall be invested, the duration of such investments, and the timing of the expenditure of such proceeds shall be as set forth in this Agreement and the applicable fiscal agent agreement (the “Fiscal Agent Agreement”); provided, that in all such matters City shall comply with the requirements of and limitations prescribed by the provisions of Sections 103 and 141 through 150 of the Internal Revenue Code of 1986 (the “Code”), as amended, and the implementing regulations of the United States Department of the Treasury. The City shall not be required to take any such action which in the opinion of the City’s bond counsel could result in the Bonds being classified by the United States Department of the Treasury as “arbitrage bonds” or which could otherwise result in the interest on the Bonds being included in gross income for purposes of Federal incom e taxation. Should any change in or regulatory interpretation of any such requirement or limitation which may occur after the date of this Agreement require or necessitate, in the reasonable opinion of such bond counsel, any action on the part of the City in order to avoid such a classification or loss of tax exemption, the City shall notwithstanding any provision of this Agreement, forthwith take such action. In the event the City fails to comply with requirements set forth above in this Section 5, the City’s liability is limited to the Special Tax revenues generated by the District. Section 6. Priority and Allocation of Special Taxes and Bond Proceeds. (a) Special Taxes Prior to the Issuance of Bonds. Prior to the issuance of Bonds, Special Taxes may be levied at the discretion of the City on Developed Property pursuant to the Rate and Method in and following the first fiscal year in which an Assessor’s Parcel is classified as Developed Property until the issuance of the final series of Bonds. Prior to the issuance of the first series of Bonds, the proceeds of the Special Taxes shall be allocated in the following priority: (1) first, to pay all reasonable costs of administration of the District; (2) second, to pay eligible costs reasonably determined by the City to be necessary to facilitate the issuance of Bonds within the next six (6) months; and (3) third, the amount remaining after payment of the amounts for (1) and (2) shall be deposited in the Special Fund and disbursed first to reimburse prior deposits paid by Owner to City pursuant to the Deposit Agreement, then to fund the Public Facilities. (b) Special Taxes Following the Issuance of Bonds. Following the issuance of the first series of Bonds and continuing until the issuance of the final series of Bonds, the City shall levy Special Taxes on all Assessor’s Parcels classified as Developed Property at the 14.i Packet Pg. 763 Attachment: Attachment 9 - Funding Agreement (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 55600.00911\33505294.2 5 Assigned Special Tax amount pursuant to the Rate and Method or such lesser amount which complies with the Fiscal Agent Agreement. In years in which there is no levy of Special Taxes on Undeveloped Property, the priority for allocation of the Special Taxes collected from Developed Property shall be as follows: (1) first, to fund an amount up to the annual Administrative Expense Requirement; (2) second, to pay principal and interest on outstanding Bonds and to replenish the reserve fund to the applicable reserve fund requirement; (3) third, to fund all actual administrative expenses in excess of the Administrative Expense Requirement; and (4) fourth, all remaining amounts shall reduce special tax levies in subsequent fiscal years. (c) Bond Proceeds. The proceeds of all Bonds shall be allocated and disbursed according to the following priorities: (1) first, to fund all costs of issuance of the Bonds including (i) a reserve fund for the Bonds which does not exceed the amount permitted under the Code or the Act, (ii) capitalized interest for at least the period required to collect sufficient Special Taxes through the annual levy, or a longer period requested by Owner, not to exceed an amount equal to two years interest, or such lesser amount as the City shall determine pursuant to the Financing District Policy, (iii) the underwriter’s discount, (iv) the Reimbursable Expenses, and (v) bond counsel fees, disclosure counsel fees, financial advisor, appraisal and market absorption consultant fees, special tax consultant fees, fiscal agent or trustee fees and other typical and reasonable out-of-pocket expenses incurred by the City in connection with the issuance and sale of the Bonds; (2) second, to reimburse, without interest, prior deposits paid by Owner to City pursuant to the Deposit Agreement and this Agreement related to formation of the District and issuance of the Bonds; and (3) third, to fund the Public Facilities in satisfaction of an amount equal to City Fees for which Special Taxes were insufficient to pay, as may be determined by the City in consultation with Owner. Section 7. Indemnification. Owner shall promptly defend, indemnify and hold harmless the City, its officers, employees and agents, and each and every one of them, and the District from any and all claims, actions, liability, damages, losses, expenses and costs a rising out of Owner’s performance of, or failure to perform, its duties hereunder or by reason of, or arising out of, this Agreement. Section 8. City Policies. The Rate and Method, the sale of the Bonds and the ratio of the appraised market value of all parcels of property within the District to the total amount of the 14.i Packet Pg. 764 Attachment: Attachment 9 - Funding Agreement (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 55600.00911\33505294.2 6 assessment and special tax obligation thereof after the issuance and sale of the Bonds (the “Value-to-Lien Ratio”) shall comply with the Financing District Policy of the City. Section 9. Representations, Covenants and Warranties of Owner. Owner represents and warrants for the benefit of the City as follows: A. Organization. Owner is duly organized, validly existing and in good standing under the laws of the State of Delaware, is duly qualified to conduct business as a foreign limited liability company and is in good standing under the laws of the State of California and has the limited liability company power and limited liability company authority to own its properties and assets and to carry on its business as now being conducted and as now contemplated. B. Authority. Owner has the limited liability company power and limited liability company authority to enter into this Agreement, and has taken all action necessary to cause this Agreement to be executed and delivered by Owner, and this Agreement has been duly and validly executed and delivered by Owner. C. Binding Obligation. This Agreement is a legal, valid and binding obligation of Owner, enforceable against Owner in accordance with its terms, subject to bankruptcy and other equitable principles. D. Compliance with Laws. Owner shall not with knowledge commit, suffer or permit any act to be done in, upon or to the lands of Owner in the District in violation of any law, ordinance, rule, regulation or order of any governmental authority or any covenant, condition or restriction now or hereafter affecting the lands in the District. E. Additional Information. Owner agrees to cooperate with all reasonable written requests for nonproprietary information by the original purchasers of the Bonds or the City related to the status of construction of improvements within the District, the anticipated completion dates for future improvements, and any other matter material to the investment quality of the Bonds. F. Continuing Disclosure. Owner agrees to comply with all of its obligations under any continuing disclosure agreement executed by it in connection with the offering and sale of any of the Bonds. Owner shall cooperate with City in complying with the requirements of Rule 15c2-12 of the Securities and Exchange Commission in connection with the issuance and sale of the Bonds. Owner shall provide information to the City regarding its operations and financial condition as such information has been disclosed in the Official Statement. The City, in consultation with the underwriter of the Bonds, may determine that some or all of such financial information will be included in the preliminary official statement and the final official statement for the Bonds. If Owner owns property within the District responsible for more than 20% of the Special Taxes levied in such fiscal year, then Owner acknowledges that it may be an “obligated person” for purposes of compliance with Rule 15c2-12(b)(5) of the Securities and Exchange Commission and that it may therefore be necessary that Owner enter into a continuing disclosure undertaking, at the time of and in connection with the issuance and sale of the Bonds, that so long as it remains an obligated person it will semi-annually, at the time 14.i Packet Pg. 765 Attachment: Attachment 9 - Funding Agreement (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 55600.00911\33505294.2 7 specified in such undertaking, provide information regarding its financial condition, including, at the City’s discretion, such regularly submitted periodic reports and financial statements prepared by Owner’s certified public accountant which are available to the investing public (which may be consolidated with Owner’s parent company) and the status of development and residential and land sale activity within the District to be included within the semi-annual reports which Owner, or a dissemination agent designated in such undertaking, will file with the Nationally Recognized Municipal Securities Information Repositories which are identified by the Securities and Exchange Commission and any state information repository that may be designated for the State of California, as required by that rule. Copies of all such reports shall also be provided to the City and the underwriter of the Bonds. Owner further acknowledges that it may be an obligated person pursuant to such rule as long as it owns property within the District that is responsible for the payment of annual Special Taxes which represent 20% or more of the annual debt service on the Bonds. If Owner sells any portion of property within the District to an entity and such entity will own property within the District which will be responsible for the payment of annual Special Taxes which represent 20% or more of the annual debt service on the Bonds, Owner shall notify such entity that it will be an obligated person for purposes of the rule and that such entity will be required to enter into a continuing disclosure undertaking as provided in this section. Section 10. Independent Contractor. Owner is an independent contractor and not the agent of the City or the District. This Agreement shall not and does not create a joint venture or partnership between the City and Owner. The City shall have no responsibility or liability for the payment of any amount to any employee or subcontractor of Owner. Section 11. Special Taxes. The parties are entering into this Agreement and establishing the District for the purpose of creating a stream of Special Tax revenues that will be available to the District to pay directly the costs of acquisition, construction and/or equipping the Public Facilities and to pay debt service on the Bonds, the proceeds of which will be used to pay the costs of acquisition, construction and/or equipping of the Public Facilities. Owner and City hereby acknowledge and agree (i) that any reduction or termination of the Special Taxes by exercise of the initiative power or other action would constitute a substantial impairment of the Special Tax revenue stream that Owner and City intend to create for the purpose of providing an assured source of funding for construction, acquisition and/or equipping of the Public Facilities, and (ii) that this Agreement is being entered into, and the Special Taxes are being imposed upon the Property pursuant to the Rate and Method, in accordance with existing laws relating to the imposition of fees and charges as a condition of development of the Property and such Special Taxes are being incurred as an incident of the voluntary act of development of the Property. To the fullest extent permitted by law, Owner, for itself and for each of its successors and assigns as owners or lessees of all or any portion of the Property included in the District hereby waives any right to exercise the initiative power that may be authorized in California Constitution Article XIIIC, Section 3, to reduce or appeal the Special Taxes. Section 12. Disclosure of Special Taxes. (a) From and after the date of this Agreement, Owner shall provide a “Notice of Special Tax” (as defined in Section 15(b) below) to each prospective purchaser of a home in the District prior to the execution by the home buyer of the sale contract for such home. Owner shall (i) maintain records of each Notice of Special Tax for a period of five (5) years, and 14.i Packet Pg. 766 Attachment: Attachment 9 - Funding Agreement (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 55600.00911\33505294.2 8 (ii) shall provide copies of each notice to City promptly following the giving of such notice. Owner shall include the Notice of Special Tax in all Owner’s applications for Final Subdivision Reports required by the Department of Real Estate (“DRE”) which are filed after the effective date of this Agreement. Owner shall require of a builder acquiring lots within the Property (a “Residential Builder”), prior to the close of escrow on any residential lot, to (i) maintain records of each Notice of Special Tax for a period of five (5) years, (ii) provide copies of each notice to City promptly following the giving of such notice, and (iii) include the Notice of Special Tax in all of such Residential Builder’s applications for Final Subdivision Reports required by DRE. (b) With respect to any parcel, the term “Notice of Special Tax” means a notice in the form prescribed by California Government Code Section 53341.5 which is calculated to disclose to the purchaser thereof (i) that the property being purchased is subject to the Special Taxes and other special taxes of the District; (ii) the classification of such property; (iii) the maximum annual amount of the Special Tax es and other special taxes of the District and the number of years for which they are authorized to be levied; and (iv) the types of facilities and services to be paid with the proceeds of the Special Taxes and other special taxes of the District. (c) City will file with the San Bernardino County Recorder’s office a notice of special tax lien that gives notice of the existence of the District and the levy of the Special Tax on property within the District for the benefit of subsequent property owners, pursuant to requirements of Section 3114.5 of the Streets and Highways Code. (d) Sample Property Tax Bill/Special Tax Information Sheet. Owner and its successors and assigns shall prepare and have available in its sales office, copies of either a sample property tax bill in a form reasonably acceptable for the City or special tax information sheet in substantially the form attached hereto as Exhibit D (the “Special Tax Information Sheet”), which shows the assigned annual Special Taxes and other special taxes authorized to be levied within the District under the Rate and Method. Owner and its successors and assigns shall make available to prospective homebuyers to take with them, copies of such sample property tax bill or Special Tax Information Sheet at the time written information regarding the base home price and property tax information for a specific home site is requested by and provided to such homebuyers. Owner intends to comply with this requirement by providing prospective homebuyers who request such additional written information, with the sample property tax bill in Owner’s Master Property Disclosure Report, a copy of which has presented to and approved by the City. Section 13. Termination and Dissolution. Prior to the issuance of Bonds, Owner may elect to terminate this Agreement and request that the City cancel the Special Taxes by providing written notice to the City. Within thirty (30) days of such written notice, City shall record a notice of cancellation of the Special Taxes with respect to each parcel. Owner shall be responsible for reasonable City costs incurred relating to the cancellation of the Special Taxes and recordation of such notice; provided, however, that the City shall not terminate the Special Taxes for any lot for which a building permit has been issued, unless Owner pays all City fees or posts separate security therefore. Such termination of this Agreement and cancellation of Special 14.i Packet Pg. 767 Attachment: Attachment 9 - Funding Agreement (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 55600.00911\33505294.2 9 Taxes shall have no effect on Owner’s obligations to pay City Fees upon issuance of a building permit. Section 14. Binding on Community Facilities District. The District shall automatically become a party to this Agreement, and all provisions hereof which apply to the City shall also apply to the District. The City Council of the City, acting as the legislative body of the District, shall perform all parts of this Agreement which require performance on the part of the District. Section 15. Assignment. Upon the successful formation of the District, this Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto and shall run with the land without any further action of the City or Owner unless terminated in writing pursuant to Section 16. Section 16. Prompt Action. All consents, approvals and determinations required of either the City or Owner pursuant to this Agreement shall be promptly given or made, and shall not be unreasonably withheld or conditioned. Section 17. General. This Agreement and the Deposit Agreement contain the entire agreement between the parties with respect to the matters herein provided for. This Agreement may only be amended by a subsequent written agreement signed on behalf of both parties. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. This Agreement shall be construed and governed by the Constitution and laws of the State of California. Should either party to this Agreement commence a court action or proceeding against the other party with respect to this Agreement, the party prevailing in such action or proceeding shall be entitled to receive from the losing party its attorney’s fees, expert witness fees, court costs and other costs incurred by it in prosecuting or defending such action or proceeding. The captions of the sections of this Agreement are provided for convenience only, and shall not have any bearing on the interpretation of any section hereof. This Agreement may be executed in several counterparts, each of which shall be an original of the same agreement. [Signature Page Follows] 14.i Packet Pg. 768 Attachment: Attachment 9 - Funding Agreement (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 55600.00911\33505294.2 S-1 IN WITNESS WHEREOF, the parties have caused this agreement to be signed as of the date first above written. Dated: ICO FUND VI, LLC, a Delaware limited liability company By: ________________________________ Jian Torkan, Manager Dated: CITY OF SAN BERNARDINO By: ________________________________ Teri Ledoux, City Manager ATTEST: By: City Clerk APPROVED AS TO FORM: By: Bond Counsel -Signature Page- Funding and Acquisition Agreement 14.i Packet Pg. 769 Attachment: Attachment 9 - Funding Agreement (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 55600.00911\33505294.2 A-1 EXHIBIT A DESCRIPTION OF PUBLIC FACILITIES The immediately following table lists the Public Facilities to be constructed by Owner and the Public Facilities to be owned, operated and maintained by the City, including the current cost estimates related thereto, which are subject to change. Local Circulation System Improvements $ 22,362 Regional Circulation System Improvements 233,760 Storm Drain Improvements 376,887 Parkland and Open Space Improvements 913,715 Sewer Capacity Improvements 336,000 Sewer Connection Improvements 133,980 Water Connection Improvements 540,480 TOTAL PUBLIC FACILITIES $2,557,184 14.i Packet Pg. 770 Attachment: Attachment 9 - Funding Agreement (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 55600.00911\33505294.2 B-1 EXHIBIT B DEFINITIONS The following terms shall have the meanings ascribed to them for purposes of this Agreement. Unless otherwise indicated, any other terms, capitalized or not, when used herein shall have the meanings ascribed to them in the Fiscal Agent Agreement (as hereinafter defined). “Acceptable Title” means title to land or interest therein, in form acceptable to the Public Works director, free and clear of all liens, taxes, assessments, leases, easements and encumbrances, whether or not recorded, but subj ect to any exceptions determined by the Public Works Director as not interfering with the actual or intended use of the land or interest therein. Notwithstanding the foregoing, an irrevocable offer of dedication may constitute land with an “Acceptable Title” if: (i) such offer is necessary to satisfy a condition to a tentative or final parcel map, (ii) such offer is in a form acceptable to the Public Works Director, (iii) the Public Works Director has no reason to believe that such offer of dedication wil l not be accepted by the applicable public agency, and (iv) the Owner commits in writing not to allow any liens to be imposed on such property prior to its acceptance. “Additional Bonds” means any series of Bonds issued by or on behalf of the District after the first series of Bonds, in each case in compliance with and under supplements to the Fiscal Agent Agreement, which Additional Bonds shall be secured on a parity lien or subordinate lien position with other Bonds previously issued. “Affiliate” mean, with respect to the Owner, any other Person who control, is controlled by or is under common control with the Owner, for purposes hereof, control means the power to exercise a controlling influence over the management or policies of a person, unless such pow er is solely the result of an official position with such person. “Agreement” means this Agreement, together with any Supplement hereto. “Act” means the Mello-Roos Community Facilities Act of 1982, Sections 53311 et seq. of the California Government Code, as amended. “Administrative Expense Requirement” means $25,000 per year commencing in the first year of issuance of Bonds. “Assessor’s Parcel” shall have the meaning ascribed to it in the Rate and Method. “Bonds” means any series of bonds issued by or on behalf of the District. “City Fees” means the following development impact fees imposed by the City; water and sewer connection, street and signal, law enforcement, fire protection, library, public meeting, aquatic center, parks and radio communication. “Deposit Agreement” means the Deposit Agreement between the City and the Owner. “District Representative” means the City Manager of the City, or his or her designee. 14.i Packet Pg. 771 Attachment: Attachment 9 - Funding Agreement (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 55600.00911\33505294.2 B-2 “Extraordinary Administrative Expenses” means administrative expenses required for extraordinary District events such as foreclosure actions against delinquent taxpayers within the District. “Financing District Policy” means the City of San Bernardino Debt Policy and Procedures, dated September 16, 2015, as amended on July 1, 2020 or as further amended from time to time. “Fiscal Agent” means the financial institution or other entity that enters into a Fiscal Agent Agreement with the City with respect to the Bonds. “Fiscal Agent Agreement” means, collectively, any agreement or agreements by that or similar name to be executed by the City, for and on behalf of the District, and the fiscal agent, which will provide for, among other matters, the issuance of the Bonds and the establishment of an Improvement Fund as originally executed by the City and the fiscal agent and as it may be amended from time to time. “Owner” means ICO FUND VI, LLC, a Delaware limited liability company, as the owner of the Property, and its successors and assigns, other than individual homebuyers. “Person” means an individual, a corporation, a partnership, an association, a limited liability company, a joint stock company, a trust, any unincorporated organization or a government or political subdivision thereof. “Rate and Method” means the rate and method of apportionment of special taxes approved for the District in accordance with the Act. “Special Fund” means a discrete, interest-bearing special fund of the City to be established and administered pursuant to this Agreement. “Special Tax or Special Taxes” means the special tax designated in the Rate and Method. 14.i Packet Pg. 772 Attachment: Attachment 9 - Funding Agreement (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) 55600.00911\33505294.2 D-1 EXHIBIT C CITY OF SAN BERNARDINO SPECIAL TAX INFORMATION SHEET Community Facilities District No. 2021-1 (Ferree Street) 1. WHAT IS COMMUNITY FACILITIES DISTRICT (CFD) NO. 2021-1? CFD No. 2021-1 (Ferree Street) was formed pursuant to the “Mello-Roos Community Facilities Act of 1982” to finance certain public facilities. 2. WHO IS RESPONSIBLE TO PAY THE SPECIAL TAX AND HOW IS IT BILLED? The property owner is responsible for paying the CFD No. 2021-1 (Ferree Street) special taxes, which will appear as a separate line item on your property tax bill along with your regular property taxes. 3. HOW MUCH WILL MY SPECIAL TAX BE? The special tax is based upon the size of the home. The assigned and maximum special taxes for CFD No. 2021-1 (Ferree Street) for the 2020-21 fiscal year are summarized below. Land Use Category Taxable Unit Building Square Footage Assigned Special Tax Per Taxable Unit 1. 4. HOW LONG WILL I HAVE TO PAY THE CFD NO. 2021-1 SPECIAL TAX? Special Taxes will not be collected after fiscal year 2061-62. 5. CAN THE SPECIAL TAXES BE PREPAID? Homeowners have the option of prepaying special taxes anytime. For prepayment information please contact the City of San Bernardino’s CFD No. 2021-1 (Ferree Street) administrator, Spicer Consulting Group, LLC, 41619 Margarita Road, Suite 101, Murrieta, CA 92591, phone (866-504- 2067). 6. WHERE CAN I GET MORE INFORMATION? For more information in regards to CFD No. 2021-1, contact the City of San Bernardino’s CFD No. 2021-1 (Ferree Street) administrator, Spicer Consulting Group, LLC, 41619 Margarita Road, Suite 101, Murrieta, CA 92591, phone (866-504-2067). 14.i Packet Pg. 773 Attachment: Attachment 9 - Funding Agreement (7132 : Community Facilities District No. 2021-1 (Ferree Street) Formation (Ward 3)) Public Hearings Ferree Street Development APN: 0281-161-48 (TR 20293) CFD No. 2018-1 (Safety Services) Annexation No. 3 CFD No. 2019-1 (Maintenance Services) Annexation No. 7 CFD No. 2021-1 (Ferree Street) Formation 1 14.j Packet Pg. 774 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearings on Ferree Residential Project Background •The proposed residential project includes one parcel APN 0281-161-48 within TR 20293. This proposed development is to include 96 detached single-family residential lots. •The Property Owner, ICO Fund VI, LLC, has requested the City assist them in: •Annexing territory into CFD No. 2018-1 (Safety Services) to mitigate the impacts to Public Safety services; and •Annexing territory into CFD No. 2019-1 (Maintenance Services) to cover the costs associated with public maintenance services; and •Formation of CFD No. 2021-1 (Ferree Street) to finance certain public improvements 2 14.j Packet Pg. 775 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearings on Ferree Residential Project Background •Proposed timeline for CFD annexations/formation: •Project Approval for TR 20293 •Planning Commission – September 22, 2020 •City Council – November 4, 2020 •CFD Action Items •City Council Meetings – Adopt Resolution of Intentions (ROI) – 1/20/2021 •Public Hearing – Hold Public Hearing and Resolutions, conduct election, and introduce 1st Reading of Ordinances – 3/3/2021 •Each Public Hearing has to be held separately •2nd Reading of Ordinance – 3/17/2021 3 14.j Packet Pg. 776 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Project Location 4 14.j Packet Pg. 777 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Tract Map No. 20293 5 14.j Packet Pg. 778 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Maintenance Exhibit 6 14.j Packet Pg. 779 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearing on CFD 2018-1 (Safety Services) Annexation No. 3 7 14.j Packet Pg. 780 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearing on CFD 2018-1 Annexation No. 3 Recommended Action City Council initiate annexation of territory to City of San Bernardino Community Facilities District No. 2018-1 (Safety Services) ("CFD No. 2018-1" or "CFD") by taking the following actions: a. Hold public hearing, b. Adopt a Resolutioncalling the election, c. Hold a special landowner election and canvass the election, d. Adopt a Resolutiondeclaring results of special landowner election; 8 14.j Packet Pg. 781 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearing on CFD 2018-1 Annexation No. 3 Discussion •The Property Owner, ICO Fund VI, LLC, has requested the City assist them in annexing territory into CFD No. 2018-1 to cover the costs associated with Public Safety services. •The area proposed within Annexation No. 3 includes one parcel APN 0281-161-48 within TR 20293. This proposed development is to include 96 detached single-family residential lots. •On January 20, 2021 the City Council adopted Resolution No. 2021-6, a Resolution of Intention to annex these properties into CFD No. 2018-1 and hold a Public Hearing on March 3, 2021. The property owner consented to waiving certain time restriction and conduct the election the same night. 9 14.j Packet Pg. 782 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearing on CFD 2018-1 Annexation No. 3 Discussion (Cont.) •The proposed maximum annual tax of $385 per residential unit for Fiscal Year 2021-22. •The Special Tax is proposed to escalate each year after July 1, 2024 by 4%. •The services, which may be funded with proceeds of the special tax include: •Police protection services (including but not limited to criminal justice services) and paramedic services; and •City and County costs associated with the setting, levying and collection of the special tax, and in the administration of the District including the contract administration and operating reserves. 10 14.j Packet Pg. 783 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearing on CFD 2018-1 Annexation No. 3 Fiscal Impact •It is anticipated that at build-out the total Special Tax revenues to pay for public safety services will be approximately $36,960. All costs associated with the annexation is borne by the Developer. There is no fiscal impact to the City’s General Fund. 11 14.j Packet Pg. 784 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearing on CFD 2019-1 (Maintenance Services) Annexation No. 7 12 14.j Packet Pg. 785 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearing on CFD 2019-1 Annexation No. 7 Recommended Action 1. City Council initiate annexation of territory to City of San Bernardino Community FacilitiesDistrict No. 2019-1 (Maintenance Services) ("CFD No. 2019-1" or "CFD") by taking the followingactions: a. Hold public hearing, b. Adopt a Resolution calling the election, c. Hold a special landowner election and canvass the election, d. Adopt a Resolution declaring results of special landowner election; and 2. Upon approval of the preceding resolutions, Introduce an Ordinance amending Ordinance No.MC-1522 and levying and apportioning the special tax in CFD No. 2019-1 (as it now exists andwill exist in the future); and 3. Schedule the final reading and adoption of the Amended Ordinance for March 17, 2021. 13 14.j Packet Pg. 786 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearing on CFD 2019-1 Annexation No. 7 Discussion •The Property Owner, ICO Fund VI, LLC, has requested the City assist them in annexing territory into CFD No. 2019-1 to cover the costs associated with the maintenance of Public Improvements. •The area proposed within Annexation No. 7 includes one parcel APN 0281-161-48 within TR 20293. •On January 20, 2021 the City Council adopted Resolution No. 2021-17, a Resolution of Intention to annex these properties into CFD No. 2019-1 and hold a Public Hearing on March 3, 2021. The property owner consented to waiving certain time restriction and conduct the election the same night. 14 14.j Packet Pg. 787 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearing on CFD 2019-1 Annexation No. 7 Discussion (Cont.) •The proposed maximum annual tax of $216 per unit will be included in CFD No. 2019-1 as Tax Zone 8. •The maximum annual tax is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. 15 14.j Packet Pg. 788 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearing on CFD 2019-1 Annexation No. 7 Discussion (Cont.) •The services, which may be funded with proceeds of the special tax include: •All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way •Public lighting including street lights and traffic signals, •Maintenance of streets, including pavement management, and street sweeping, •Maintenance and operation of water quality improvements including storm drainage and flood protection facilities •In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds. 16 14.j Packet Pg. 789 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearing on CFD 2019-1 Annexation No. 7 Fiscal Impact •It is anticipated that at build-out the total Special Tax revenues to pay for maintenance costs will be approximately $20,717. All costs associated with the annexation is borne by the Developer. There is no fiscal impact to the City’s General Fund. 17 14.j Packet Pg. 790 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearing on Formation of CFD 2021-1 (Ferree Street) 18 14.j Packet Pg. 791 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearing on CFD 2021-1 Formation Recommended Action 1. City Council initiate formation of Community Facilities District No. 2021-1 (Ferree Street) (CFD No.2021-1) by taking the followingactions: a. Hold public hearing, b. Adopt a Resolution establishing CFD No. 2021-1 and the boundaries thereof and approvingFunding and Acquisition, c. Adopt a Resolution determining necessity to incur bonded indebtedness, c. Adopt a Resolution calling the election, d. Hold a special landowner election and canvass the election, e. Adopt a Resolution declaring results of special landowner election; and 2. Upon approval of the preceding resolutions, Introduce an Ordinance authorizing the levy of specialtaxes within CFD No. 2021-1; and 3. Schedule the final reading and adoption of the Ordinance for March 17, 2021. 19 14.j Packet Pg. 792 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearing on CFD 2021-1 Formation Discussion •On January 20, 2021 the Mayor and City Council approved Resolution No. 2021-4 and 2021-5 which initiated the formation of the CFD, approve the boundaries of the proposed CFD, describe the facilities proposed to be finance, proposed a rate and method of apportionment of special taxes and declared the necessity to issue bonds to finance the Facilities for CFD No. 2021-1. •The Property Owner, ICO Fund VI, LLC, has requested the City assist them in forming CFD No. 2021-1 to finance certain public improvements through the levy of a special tax and the issuance of bounds in an amount not to exceed $4,000,000. 20 14.j Packet Pg. 793 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearing on CFD 2021-1 Formation Discussion (Cont.) •The area proposed within CFD No. 2021-1 includes one parcel APN 0281-161-48 within TR 20293. This proposed development is to include 96 detached single-family residential lots. •As required by the ROI the proposed boundary map for CFD No. 2021-1 was recorded February 3, 2021 in Book 89, Page 51 Document No. 2021-0053175. 21 14.j Packet Pg. 794 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearing on CFD 2021-1 Formation Discussion (Cont.) •The CFD Public Hearing Report was prepared by Spicer Consulting Group and describes and analyzes the facilities to be finance by the CFD and the estimated costs of such facilities. •The anticipated issuance amount based on current rates would be approximately $3,100,000 which would cover a reserve fund, financing costs, and generate approximately $2,557,199 in net bond proceeds for facilities. •The proposed facilities, which may be funded with proceeds of the bonds include: •$1,010,460 – City Water District Improvements •$1,546,739 – City Development Impact Fees •In addition to the costs of the foregoing facilities, proceeds of the special tax may be expended to pay administrative costs. 22 14.j Packet Pg. 795 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearing on CFD 2021-1 Formation Discussion (Cont.) •The proposed development is proposing to build 96 detached residential units with home sizes ranging from 1,845 to 2,045 square feet. •The project is currently annexing into CFD 2018-1 (Public Safety) to cover police and ambulance services. •The project is also currently annexing into CFD 2019-1 (Maintenance Services) to cover landscaping, lighting, street sweeping and pavement management, drainage, parks and trails, and graffiti abatement service costs. •The total tax effective tax rate is estimated at 1.91% of projected home prices. This is within the 2% allowable tax rate limit in the City’s Financing Goals and Policies. •The estimated assigned annual tax rates range from $2,266 for home sizes less than 1,850 square feet to $2,433 for home sizes greater than 2,000 square feet. 23 14.j Packet Pg. 796 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearing on CFD 2021-1 Formation Discussion (Cont.) •Proposed timeline for facilities CFD formation: •City Council Meeting – Adopt Resolution of Intention (ROI) – 1/20/2021 •Public Hearing – Hold Public Hearing and Resolution, conduct election, and introduce 1 st Reading of Ordinance – 3/3/2021 •2nd Reading of Ordinance – 3/17/2021 •Bond Issuance would be requested by Developer after certain criteria has been met: •Development Threshold – Building Permits Issued •Individually Owned Threshold – Diversification of Ownership •Value-to-Lien Threshold – Exceeds 4:1 •Letter of Credit Secured – If necessary •An offering document would be prepared and presented to City Council prior to Bond Issuance 24 14.j Packet Pg. 797 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Public Hearing on CFD 2021-1 Formation Fiscal Impact •The Special Tax will be levied annually on taxable properties in CFD No. 2021-1 in accordance with the Rate and Method of Apportionment (RMA) to pay for the cost of facilities, debt service on bonds, and administration of the CFD. Any bonds issued by CFD No. 2021-1 are NOT obligations of the City and will be secured solely by the Special Taxes levied in CFD No. 2021-1. •All costs associated with the formation is borne by the Developer. The ROI included Section 8 to approve by resolution the ability to reimburse the developer for these costs if and when bonds are issued for the CFD. •There is no fiscal impact to the City’s General Fund 25 14.j Packet Pg. 798 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Questions? 26 14.j Packet Pg. 799 Attachment: Attachment 10 - PowerPoint Presentation (7132 : Community Facilities District No. 2021-1 Page 1 Public Hearing City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Kris Jensen, Director of Public Works Subject: Community Facilities District No. 2019-1 (Maintenance Services): Annexation No. 8 (Ward 6)) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; 2. Adopt Resolution No. 2021-46 of the Mayor and City Council of the City of San Bernardino, California, calling for an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 8); 3. Hold a special landowner election and canvass the election; 4. Adopt Resolution No. 2021-47 of the Mayor and City Council of the City of San Bernardino, California, declaring election results for Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 8); 5. Introduce Ordinance No. MC-1556 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2021-22 to pay the annual costs of the maintenance and servicing of landscaping, lighting, streets, street sweeping, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and 6. Schedule the final reading and adoption of Ordinance No MC -1556 for March 17, 2021. Background On January 20, 2021, the Mayor and City Council adopted Resolution No. 2020 -16, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 15 Packet Pg. 800 7092 Page 2 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello -Roos Community Facilities Act of 1982”. A public hearing was set for March 3, 2021 on the proposed annexation of the said territory into the community facilities district. As required by the Resolution of Intention, a boundary map was recorded on February 3, 2021, at 10:54 a.m. in Book 89 Page 49, Document No. 2021-0058173 of Maps of Assessment and Community Facilities Districts with the San Bernardino County Recorder. The Resolution of Intention was adopted by the Mayor and City Council in response to a petition filed by the property owner of approximately 14.44 gro ss acres of vacant industrial property on Assessor’s Parcel Number 0148 -122-04 within the City, requesting that the City assist them in annexing their properties into CFD No. 2019 -1 under the Mello-Roos Act. The State legislature enacted the Mello-Roos Act in 1982 to assist public agencies in financing certain public improvements by either issuing tax exempt securities that are repaid by annual levy of special taxes, or to provide for the financing of on-going public services. The landowner requested the City annex into CFD No. 2019-1 to levy a special tax to cover the costs associated with the maintenance of public improvements. The public facilities and services proposed to be financed within the territory to be annexed to the District are the following: 1. Public lighting and appurtenant facilities, including street lights within public rights-of-way and traffic signals; 2. Maintenance of streets, including pavement management, and provide street sweeping; 3. Maintenance and operation of water qu ality improvements including storm drainage and flood protection facilities; and 4. City and County costs associated with the setting, levying and collection of the special tax, and in the administration of the District including the contract administration and for the collection of reserve funds. The proposed area to be annexed into the CFD will be included in Tax Zone 9 and is located west of I-215, north of w 24th Street and west of Cajon Blvd, as shown in Attachment #1. The maximum annual special tax for this development has been calculated to be $1,047 per acre for FY 2021/22. This tax rate includes a Maximum Special Tax A of $815 per acre per year for maintenance services of public facilities and a Maximum Annual Special Tax B (Contingent) of $232 per acre per year. If the Property Owners Association (POA) were to default of its obligation to maintain such improvements, the City would be able to collect funds to pay for those services. The maximum annual tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. The property owners have agreed to initiate and conduct the CFD annexation proceedings pursuant to the Mello-Roos Act of 1982. The property owners have 15 Packet Pg. 801 7092 Page 3 submitted a “Consent and Waiver” form on file in the City Clerk’s Office to initiate and conduct proceedings pursuant to the Mello-Roos Act in 1982, for the annexation into the CFD and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election. In order to annex property to CFD No. 2019 -1 pursuant to the provisions of California Government Code Section 53311 et seq., the City must adopt a series of three statutorily required Resolutions and an Ordinance which are summarized below. Resolution declaring the City’s intent to annex territory to Community Facilities District No. 2019-1 including the boundary of the area to be annexed and the rate and method of apportionment of special taxes within th e annexation area (the special tax applies only to properties within the annexation area), adopted January 20, 2021. Resolution calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to the District. Resolution declaring the results of the election and directing the recording of the notice of special tax lien. Amend the Ordinance and order the levy and collection of special taxes in the District. With the adoption of the Resolutions and the first reading of the amended Ordinance, the second reading of the amended Ordinance would be scheduled for March 17, 2021. Discussion The Resolution of Intention called for a public hearing to be held on March 3, 2021 on the issue of the annexation of territory into CFD No. 2019-1. Under the Mello-Roos Act, the City Council must hold the public hearing and consider any protests against the formation of the CFD. If the owners of one half or more of the land within the proposed boundaries of the CFD file written protests against the establishment of the CFD, the Council may not create the CFD. If a majority protest is not filed, the City Council may adopt the resolution establishing the CFD. Adoption of Resolution No. 2019-178 on July 17, 2019 established CFD 2019-1, pursuant to the requirements of Government Code Section 53325.1. After a CFD is formed, the Mello-Roos Act requires that for any annexations into the CFD an election be held on the question of whether the proposed special taxes should be levied. The election requires a two-thirds vote in favor of levying the special tax. The landowners filed waivers with respect to the conduct of the election pursuant to Government Code Sections 53326(a) and 53327(b), meaning that the time limits and procedural requirements for conducting an election under the Mello -Roos Act do not have to be followed. Accordingly, City staff has already mailed the election ballots to the landowners and required the ballots to be returned by the close of the public hearing. If 15 Packet Pg. 802 7092 Page 4 the Mayor and City Council adopt Resolution No. 2021 -46, it may immediately proceed to the opening of the ballots and adopt Resolution No. 2021 -47 declaring the results of the election. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No. 1: Financial Stability and Key Target No. 4: Economic Growth and Development. This project will contribute to ensure that the City is clean and attractive and will provide infrastructure designed for long term economic growth. Fiscal Impact The individual property owners in the CFD will be responsible for annual payments of special taxes. It is estimated, upon full completion of the development, there will be an annual collection of special tax revenues of app roximately $14,099 to be used to pay for maintenance costs within the development. On March 1 of each year, every taxable unit for which a building permit has been issued within the boundaries of the CFD, will be subject to the special tax for the ensui ng Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to buildout of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be applied to property within recorded final subdivision maps, as well as other undeveloped property within the boundaries of the CFD. All costs associated with annexation into the CFD have been borne by the Developer. By annexing into the CFD, the costs of maintaining improvements located within the development will be financed through special taxes levied on the parcels within CFD No. 2019-1 and not through the City’s General Fund. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; 2. Adopt Resolution No. 2021-46 of the Mayor and City Council of the City of San Bernardino, California, calling for an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 8); 3. Hold a special landowner election and canvass the election; 4. Adopt Resolution No. 2021-47 of the Mayor and City Council of the City of San Bernardino, California, declaring election results for Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 8); 15 Packet Pg. 803 7092 Page 5 5. Introduce Ordinance No. MC-1556 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2021 -22 to pay the annual costs of the maintenance and servicing of landscaping, lighting, streets, street sweeping, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and 6. Schedule the final reading and adoption of Ordinance No MC -1556 for March 17, 2021. Attachments Attachment 1 Resolution No. 2021-46; Calling an Election Attachment 2 Resolution No. 2021-46; Exhibit A Description of Proposed Territory Attachment 3 Resolution No. 2021-46; Exhibit B Rate and Method of Apportionment Attachment 4 Resolution No. 2021-46; Exhibit C Ballot Attachment 5 Resolution No. 2021-47; Declaring Election Results Attachment 6 Resolution No. 2021-47; Exhibit A Certificate of Election Results Attachment 7 Ordinance No. MC-1556 Attachment 8 Ordinance No. MC-1556; Exhibit A Description of Services Attachment 9 Ordinance No. MC-1556; Exhibit B Parcel List Attachment 10 Petition Attachment 11 Location Map Attachment 12 PowerPoint Presentation Ward: 6 Synopsis of Previous Council Actions: June 5, 2019 Mayor and City Council adopted Resolution No. 2019-81, a Resolution of Intention to form Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello - Roos Community Facilities Act of 1982.” July 17, 2019 Resolution No. 2019-178 was adopted establishing Community Facilities District No. 2019-1; Resolution No. 2019-179 was adopted declaring election results for Community Facilities District No. 2019-1; and first reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019 -20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. August 7, 2019 Final reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. 15 Packet Pg. 804 7092 Page 6 January 20, 2021 Mayor and City Council adopted Resolution No. 2021 -16, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”. 15 Packet Pg. 805 RESOLUTION NO. 2021-46 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, CALLING AN ELECTION TO SUBMIT TO THE QUALIFIED ELECTORS THE QUESTION OF LEVYING A SPECIAL TAX WITHIN THE AREA PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 8) WHEREAS, the Mayor and City Council (the “City Council”) of the City of San Bernardino (the “City”), adopted its Resolution No. 2019-081, (the “Resolution of Intention”) (i) declaring its intention to establish Community Facilities District No. 2019-1 (Maintenance Services) (the “CFD No. 2019-1”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), commencing with Section 53311 of the California Government Code (the “Government Code”), (ii) proposing to levy a special taxes within CFD No. 2019 -1 pursuant to the terms of the Act to fund the cost of providing maintenance services (the “Services”) described in Exhibit B of the Resolution of Intention, and WHEREAS, the City Council set a public hearing for July 17, 2019 after which the Council adopted Resolution No. 2019-178 forming the CFD No. 2019-1 and calling a special election at which the questions of levying a special tax and establishing an appropriations limit with respect to the CFD No. 2019-1 were submitted to the qualified electors within the CFD No. 2019-1; and WHEREAS, on July 17, 2019, the City Council adopted Resolution No. 2019-179 declaring the results of the special election and finding that more than two-thirds (2/3) of all votes cast at the special election were cast in favor of the proposition presented, and such proposition passed; and WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code as amended (the "Act"), to annex territory into an existing community facilities district by complying with the procedures set forth in said Article 3.5; and WHEREAS, the City Council on January 20, 2021 duly adopted Resolution No. 2021-16 (the “Resolution of Intention”) declaring its intention to annex certain territory to CFD No. 2019- 1 (Maintenance Services) and to levy a special tax within that territory to pay for certain services and setting a time and place for the public hearing on the proposed annexation for March 3, 2021; and WHEREAS, the territory proposed to be annexed is identified in a map entitled "Annexation Map No. 8 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on February 3, 2021, in Book 89 of Maps of Assessment and Community Facilities Districts at Page 49, in the office of the San Bernardino County Recorder; and 15.a Packet Pg. 806 Attachment: Attachment 1 - Resolution No. 2021-46 [Revision 2] (7092 : Community Facilities District No. 2019-1 (Maintenance Services): Resolution No. 2021-46 WHEREAS, pursuant to the Act and the Resolution of Intention, a noticed public hearing was convened by the City Council on March 3, 2021, not earlier than the hour of 7:00 p.m. at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92418, relative to the proposed annexation of said territory to CFD No. 2019-1. At the hearing, the testimony of all interested persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the March 3, 2021 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of San Bernardino (www.sbcity.org), and outside of the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92418. A copy of the Agenda will be made available upon request to the San Bernardino City Clerk's office at 909-384-5002; and WHEREAS, written protests have not been filed by fifty percent (50%) or more of the registered voters residing within the CFD No 2019-1, or by fifty percent (50%) or more of the registered voters residing within the territory to be annexed, or by the owners of one-half (1/2) or more of the area within the CFD No. 2019-1, or by the owners of one-half (1/2) or more of the territory to be annexed; and WHEREAS, the City Council has determined that there are fewer than twelve registered voters residing in the territory proposed to be annexed to the CFD No. 2019-1 and that the qualified electors in such territory are the landowners; and WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to call an election to authorize the annexation of territory to the CFD No. 2019-1 and the levying of a special tax as described in Exhibit A hereto; and WHEREAS, the City Council has received a written instrument from each landowner in the territory proposed to be annexed to the CFD No. 2019-1 consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and WHEREAS, the City Clerk has concurred in the election date set forth herein. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Recitals. The foregoing recitals are true and correct. SECTION 2. Conformation of Finding in Resolution of Intention. The City Council reconfirms all of its findings and determinations as set forth in the Resolution of Intention. SECTION 3. Findings Regarding Protests. The City Council finds and determines that written protests to the proposed annexation of territory to the CFD No. 2019-1 and the levy of 15.a Packet Pg. 807 Attachment: Attachment 1 - Resolution No. 2021-46 [Revision 2] (7092 : Community Facilities District No. 2019-1 (Maintenance Services): Resolution No. 2021-46 the special tax within such territory are insufficient in number and in amount under the Act, and the City Council hereby further orders and determines that all such protests are hereby overruled. SECTION 4. Findings Regarding Prior Proceedings. The City Council finds and determines that all prior proceedings had and taken by the City Council with respect to the annexation of territory to CFD No. 2019-1 are valid and in conformity with the requirements of the Act. SECTION 5. Levy of Special Tax. As stated in the Resolution of Intention, except where funds are otherwise available, subject to the approval of the qualified electors of territory proposed to be annexed to CFD No. 2019-1, a special tax sufficient to pay the costs of the Services (including incidental expenses as described in the Resolution of Intention), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2019-1, will be levied annually in CFD No. 2019-1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit B hereto. SECTION 6. Apportionment of Tax. The special tax as apportioned to each parcel is based on the cost of making the Services available to each parcel, or other reasonable basis, and is not based on or upon the ownership of real property. SECTION 7. Tax Roll Preparation. The office of the Public Works Director, 201 North “E” Street, San Bernardino, California 92418, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax levies pursuant to Government Code section 53340.2. The Public Works Director may cause these functions to be performed by his or her deputies, assistants, or other designated agents. SECTION 8. Accountability Measures. Pursuant to Section 50075.1 of the California Government Code, the City shall create a separate account into which tax proceeds will be deposited; and the Public Works Director annually shall file a report with the City Council that will state (a) the amount of funds collected and expended and (b) the status of the Services financed in CFD No. 2019-1. SECTION 9. Special Election; Voting Procedures. The City Council hereby submits the questions of levying the special tax within the territory proposed to be annexed to the qualified electors, in accordance with and subject to the Act. The special election shall be held on March 3, 2021, and shall be conducted as follows: (a) Qualified Electors. The City Council hereby determines that the Services are necessary to meet increased demands placed upon the City as a result of development occurring within the boundaries of CFD No. 2019-1. Because fewer than twelve registered voters resided within the territory proposed to be annexed to CFD No. 2019-1 on January 26, 2021 (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to CFD No. 2019-1), the qualified electors shall be the landowners within territory proposed to be annexed, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to CFD No. 2019-1. 15.a Packet Pg. 808 Attachment: Attachment 1 - Resolution No. 2021-46 [Revision 2] (7092 : Community Facilities District No. 2019-1 (Maintenance Services): Resolution No. 2021-46 (b) Consolidation of Elections; Combination of Propositions on Ballot. The election on the question of levying the special tax and establishing an appropriations limit for CFD No. 2019-1 shall be consolidated, and the two proportions shall be combined into a single ballot proposition for submission to the voters, as authorized by Government Code Section 53353.5. (c) Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The City Council hereby ratifies the City Clerk’s delivery of a ballot to each landowner within the territory proposed to be ann exed to CFD No. 2019-1. The City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit C. (d) Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 7:00 p.m. on March 3, 2021. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on the election day by voters. Once all qualified electors have voted, the City Clerk may close the election. (e) Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on March 3, 2021, or when all qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election. (f) Declaration of Results. The City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statement of the results of the special election as ascerta ined by the canvass of the returns. SECTION 10. Filing of Resolution and Map with City Clerk. The City Council hereby directs the City Clerk to file a copy of this resolution and the annexation map of the boundaries of CFD No. 2019-1 in her office. SECTION 11. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 12. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 13. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. 15.a Packet Pg. 809 Attachment: Attachment 1 - Resolution No. 2021-46 [Revision 2] (7092 : Community Facilities District No. 2019-1 (Maintenance Services): Resolution No. 2021-46 John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 15.a Packet Pg. 810 Attachment: Attachment 1 - Resolution No. 2021-46 [Revision 2] (7092 : Community Facilities District No. 2019-1 (Maintenance Services): Resolution No. 2021-46 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-46, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 15.a Packet Pg. 811 Attachment: Attachment 1 - Resolution No. 2021-46 [Revision 2] (7092 : Community Facilities District No. 2019-1 (Maintenance Services): EXHIBIT A DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED The City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services) (the “CFD No. 2019-1”) Annexation No. 8 is currently comprised of one parcel, located within the City boundaries. The property is identified by the following San Bernardino County Assessor's Parcel Numbers (APN). APN Owner Name 0148-122-04 TR 2600 Cajon Industrial LLC 15.b Packet Pg. 812 Attachment: Attachment 2 - Resolution No. 2021-46 - Exhibit A Description of Territory (7092 : Community Facilities District No. 2019-1 EXHIBIT B City of San Bernardino 1 Community Facilities District No. 2019‐1 (Maintenance Services) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES) OF THE CITY OF SAN BERNARDINO A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2019‐1 (Maintenance Services) (the “CFD No. 2019‐1” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2019, in an amount determined by the City Council of the City of San Bernardino, acting in its capacity as the legislative body of CFD No. 2019‐1, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2019‐1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein. A. DEFINITIONS “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator. “Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2019‐1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2019‐1, or any designee thereof associated with fulfilling the CFD No. 2019‐1 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2019‐1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees including payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2019‐1 for any other administrative purposes of CFD No. 2019‐1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager of the City of San Bernardino, or his or her designee. “Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the March 1 preceding the Fiscal Year in which the Special Tax is being levied, and that have not been issued a building permit on or prior to the March 1 preceding the Fiscal year in which the special tax is being levied. “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of San Bernardino. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number. “Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County. 15.c Packet Pg. 813 Attachment: Attachment 3 - Resolution No. 2021-46 - Exhibit B Rate and Method of Apportionment (7092 : Community Facilities District No. City of San Bernardino 2 Community Facilities District No. 2019‐1 (Maintenance Services) “Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction building permit issued for construction of a building of Non‐Residential Property and any Building Square Footage subsequently added to a building of such Taxable Property after issuance of a building permit for expansion or renovation of such building. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31. “CFD” or “CFD No. 2019‐1” means the City of San Bernardino Community Facilities District No. 2019‐ 1 (Maintenance Services). “City” means the City of San Bernardino. “Contingent Special Tax B Requirement” means that amount required in any Fiscal Year, if the POA is unable to maintain the Service(s) to: (i) pay the costs of Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Services as determined by the Administrator; less a credit for funds available to reduce the annual Special Tax B (Contingent) levy as determined by the Administrator. “County” means the County of San Bernardino. “Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. “Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G. “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision. “Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th. “Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of March 1 preceding the Fiscal Year in which the Special Tax is being levied. “Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable. “Maximum Special Tax A” means the Maximum Special Tax A, as determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property within CFD No. 2019‐1. 15.c Packet Pg. 814 Attachment: Attachment 3 - Resolution No. 2021-46 - Exhibit B Rate and Method of Apportionment (7092 : Community Facilities District No. City of San Bernardino 3 Community Facilities District No. 2019‐1 (Maintenance Services) “Maximum Special Tax B (Contingent)” means the Maximum Special Tax B (Contingent), as determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property within CFD No. 2019‐1. “Multi‐Family Residential Property” means any Assessor’s Parcel of residential property that consists of a building or buildings comprised of attached Residential Units sharing at least one common wall with another unit. “Non‐Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a building permit(s) was issued for a non‐residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non‐Residential Property. “Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain landscaping within a Tax Zone. “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property with the same Tax Zone, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property with the same Tax Zone, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property with the same Tax Zone. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. “Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Service(s)” means services permitted under the Mello‐Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2019‐1 as set forth in the documents adopted by the City Council at the time the CFD was formed. “Single Family Residential Property” means any residential property other than Multi‐Family Residential Property on an Assessor’s Parcel. “Special Tax(es)” means the Special Tax A and/or Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property. “Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement. "Special Tax A Requirement" means for each Tax Zone, that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs for such Tax Zone of CFD No. 2019‐1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax A Requirement include funds for Bonds. 15.c Packet Pg. 815 Attachment: Attachment 3 - Resolution No. 2021-46 - Exhibit B Rate and Method of Apportionment (7092 : Community Facilities District No. City of San Bernardino 4 Community Facilities District No. 2019‐1 (Maintenance Services) “Special Tax B (Contingent)” means the Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Contingent Special Tax B Requirement, if required. "Taxable Property" means all Assessor’s Parcels within CFD No. 2019‐1, which are not Exempt Property. “Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax. Appendix C identifies the Tax Zone in CFD No. 2019‐1 at formation; additional Tax Zones may be created when property is annexed into the CFD. "Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1. "Tract(s)" means an area of land; i) within a subdivision identified by a particular tract number on a Final Map, ii) identified within a Parcel Map; or iii) identified within lot line adjustment approved for subdivision. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property. B. ASSIGNMENT TO LAND USE CATEGORIES For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2019‐1 shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sections C and D below. Assessor’s Parcels of Developed Property and Approved Property shall be classified as either Residential Property or Non‐Residential Property. Residential Property shall be further classified as Single Family Residential Property or Multi‐Family Residential Property and the number of Residential Units shall be determined by the Administrator. C. MAXIMUM SPECIAL TAX RATES For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the building permit(s) issued or Final Map as determined by the Administrator. For Parcels of undeveloped property zoned for development of single family attached or multi‐family units, the number of Residential Units shall be determined by referencing the condominium plan, apartment plan, site plan or other development plan, or by assigning the maximum allowable units permitted based on the underlying zoning for the Parcel. Once a single family attached or multi‐family building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax A levied against the Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential Unit identified for the Tract below or as included in Appendix A as each Annexation occurs. For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non‐Residential Property, all such Assessor’s 15.c Packet Pg. 816 Attachment: Attachment 3 - Resolution No. 2021-46 - Exhibit B Rate and Method of Apportionment (7092 : Community Facilities District No. City of San Bernardino 5 Community Facilities District No. 2019‐1 (Maintenance Services) Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual number of Building Square Footage or Acres for the Assessor’s Parcels, the Special Tax A levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax per Taxable Unit identified for the Tax Zone below or as included in Appendix A as each Annexation occurs. 1. Special Tax A a. Developed Property (i) Maximum Special Tax A The Maximum Special Tax A for each Assessor’s Parcel of Developed Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax A for Developed Property for Fiscal Year 2019‐2020 within Tax Zone 1 is identified in Table 1 below: TABLE 1 MAXIMUM SPECIAL TAX A RATES DEVELOPED PROPERTY Tax Zone Tract Land Use Category Taxable Unit Maximum Special Tax A 1 TR 17170 Single Family Residential Property RU $961 (ii) Increase in the Maximum Special Tax A On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final. b. Approved Property The Maximum Special Tax A for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Approved property Fiscal Year 2019‐20 within Tax Zone 1 is identified in Table 2 below: 15.c Packet Pg. 817 Attachment: Attachment 3 - Resolution No. 2021-46 - Exhibit B Rate and Method of Apportionment (7092 : Community Facilities District No. City of San Bernardino 6 Community Facilities District No. 2019‐1 (Maintenance Services) TABLE 2 MAXIMUM SPECIAL TAX A RATES APPROVED PROPERTY Tax Zone Tract Land Use Category Taxable Unit Maximum Special Tax A 1 TR 17170 Single Family Residential RU $961 On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. c. Undeveloped Property The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Undeveloped Property for Fiscal Year 2019‐20 within Tax Zone 1 is identified in Table 3 below: TABLE 3 MAXIMUM SPECIAL TAX A RATES UNDEVELOPED PROPERTY Tax Zone Tracts Taxable Unit Maximum Special Tax A 1 TR 17170 Acre $4,338 On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. 2. Special Tax B (Contingent) The City Council shall levy Special Tax B (Contingent) only in the event the POA defaults in its bligation to maintain the Contingent Services, which default shall be deemed to have occurred, as determined by the Administrator, in each of the following circumstances: (a) The POA files for bankruptcy; (b) The POA is dissolved; (c) The POA ceases to levy annual assessments for the Contingent Services; or (d) The POA fails to provide the Contingent Services at the same level as the City provides similar services and maintains similar improvements throughout the City and within ninety (90) days after written notice from the City, or such longer period permitted by the City Manager, fails to remedy the deficiency to the reasonable satisfaction of the City Council. a. Developed Property (i) Maximum Special Tax B (Contingent) 15.c Packet Pg. 818 Attachment: Attachment 3 - Resolution No. 2021-46 - Exhibit B Rate and Method of Apportionment (7092 : Community Facilities District No. City of San Bernardino 7 Community Facilities District No. 2019‐1 (Maintenance Services) The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 4 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for each Tax Zones annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20 within Tax Zone 1 is identified in Table 4 below: TABLE 4 MAXIMUM SPECIAL TAX B (CONTINGENT) RATES DEVELOPED PROPERTY Tax Zone Tract Land Use Category Taxable Unit Maximum Special Tax B (Contingent) 1 TR 17170 Single Family Residential Property RU $0 (ii) Increase in the Maximum Special Tax B (Contingent) On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final. b. Approved Property The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 5 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20 within the Tax Zone is identified in Table 5 below: TABLE 5 MAXIMUM SPECIAL TAX B (CONTINGENT) RATES APPROVED PROPERTY Tax Zone Tract Land Use Category Taxable Unit Maximum Special Tax B (Contingent) 1 TR 17170 Single Family Residential Property RU $0 On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for 15.c Packet Pg. 819 Attachment: Attachment 3 - Resolution No. 2021-46 - Exhibit B Rate and Method of Apportionment (7092 : Community Facilities District No. City of San Bernardino 8 Community Facilities District No. 2019‐1 (Maintenance Services) Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. c. Undeveloped Property The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 6 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20 within the Tax Zone is identified in Table 6 below: TABLE 6 MAXIMUM SPECIAL TAX B (CONTINGENT) RATES UNDEVELOPED PROPERTY Tax Zone Tracts Taxable Unit Maximum Special Tax B (Contingent) 1 TR 17170 Acre $0 On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX 1. Special Tax A Commencing with Fiscal Year 2019‐20 and for each following Fiscal Year, the Council shall determine the Special Tax A Requirement and shall levy the Special Tax A on all Assessor’s Parcels of Taxable Property until the aggregate amount of Special Tax A equals the Special Tax A Requirement for each Tax Zone. The Special Tax A shall be levied for each Fiscal Year as follows: First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed Property within each Tax Zone up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax A Requirement for such Tax Zone; Second: If additional moneys are needed to satisfy the Special Tax A Requirement for a Tax Zone after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax A for Approved Property; Third: If additional monies are needed to satisfy the Special Tax A Requirement for a Tax Zone after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum Special Tax A for Undeveloped Property. 2. Special Tax B (Contingent) Commencing with Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for each following Fiscal Year, the City Council shall determine the Contingent Special Tax B (Contingent) Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of 15.c Packet Pg. 820 Attachment: Attachment 3 - Resolution No. 2021-46 - Exhibit B Rate and Method of Apportionment (7092 : Community Facilities District No. City of San Bernardino 9 Community Facilities District No. 2019‐1 (Maintenance Services) Taxable Property within such Tax Zone until the aggregate amount of Special Tax B (Contingent) equals the Special Tax B ( Contingent) Requirement for such Tax Zone. The Special Tax B (Contingent) Shall be levied for each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property for a Tax Zone up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy the Contingent Special Tax B Requirement; Second: If additional moneys are needed to satisfy the Contingent Special Tax B Requirement after the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax B (Contingent) for Approved Property; Third: If additional monies are needed to satisfy the Contingent Special Tax B Requirement after the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum Special Tax B (Contingent) for Undeveloped Property. E. FUTURE ANNEXATIONS It is anticipated that additional properties will be annexed to CFD No. 2019‐1 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services. Based on this analysis, the property to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate for the Tax Zone when annexed and included in Appendix A. F. DURATION OF SPECIAL TAX For each Fiscal Year, the Special Tax A shall be levied as long as the Services are being provided. For each Fiscal Year, the Special Tax B (Contingent) shall be levied as long as the Contingent Services are being provided. G. EXEMPTIONS The City shall classify as Exempt Property within CFD No. 2019‐1, any Assessor’s Parcels; (i) which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) which are privately owned but are encumbered by or restricted solely for public uses; or (iv) which is in use in the performance of a public function as determined by the Administrator. H. APPEALS Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative(s) of CFD No. 2019‐1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s). 15.c Packet Pg. 821 Attachment: Attachment 3 - Resolution No. 2021-46 - Exhibit B Rate and Method of Apportionment (7092 : Community Facilities District No. City of San Bernardino 10 Community Facilities District No. 2019‐1 (Maintenance Services) I. MANNER OF COLLECTION The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2019‐1 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations. 15.c Packet Pg. 822 Attachment: Attachment 3 - Resolution No. 2021-46 - Exhibit B Rate and Method of Apportionment (7092 : Community Facilities District No. City of San Bernardino 11 Community Facilities District No. 2019‐1 (Maintenance Services) APPENDIX A CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES) COST ESTIMATE Special Tax A Services ‐ The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2021‐22. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2019‐1. TAX ZONE 9 LM 2019‐021 Item Description Estimated Cost 1 Lighting $900 2 Streets $8,957 3 Reserves $135 4 Admin $986 Total $10,978 Special Tax B Contingent Services – The estimate in the table below breaks down the costs of providing one year’s contingent maintenance services for Fiscal Year 2021‐22. If necessary, these services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2019‐1 Tax Zone 9. TAX ZONE 9 (CONTINGENT SERVICES) LM 2019‐021 Item Description Estimated Cost 1 Drainage $2,383 2 Reserves $238 3 Admin $500 Total $3,121 TAX ZONE 9 FY 2021‐22 MAXIMUM SPECIAL TAX RATES DEVELOPED PROPERTY AND APPROVED PROPERTY Land Use Category Taxable Unit Maximum Special Tax A Maximum Special Tax B Non‐Residential Property Acre $815 $232 15.c Packet Pg. 823 Attachment: Attachment 3 - Resolution No. 2021-46 - Exhibit B Rate and Method of Apportionment (7092 : Community Facilities District No. City of San Bernardino 12 Community Facilities District No. 2019‐1 (Maintenance Services) TAX ZONE 9 FY 2021‐22 MAXIMUM SPECIAL TAX RATES UNDEVELOPED PROPERTY Taxable Unit Maximum Special Tax A Maximum Special Tax B Acre $815 $232 15.c Packet Pg. 824 Attachment: Attachment 3 - Resolution No. 2021-46 - Exhibit B Rate and Method of Apportionment (7092 : Community Facilities District No. City of San Bernardino 13 Community Facilities District No. 2019‐1 (Maintenance Services) TAX ZONE SUMMARY Annexation Tax Zone Tract APN Fiscal Year Maximum Special Tax A Maximum Special Tax B Subdivider Original 1 17170 2019‐20 $961 / RU $0 / RU Santiago Communities, Inc. 1 2 17329 2019‐20 $473 / RU $0 / RU JEC Enterprises, Inc. 2 3 PM 19814 2020‐21 $608 / Acre $0 / Acre GWS #4 Development, LLC 3 4 0266‐041‐39 2019‐20 $1,136 / Acre $0 / Acre Devore Storage Facility, LLC 4 5 TR 20006 2020‐21 $344 / RU $57 / RU TH Rancho Palma, LLC 5 6 PM 19701 2020‐21 $1,895 / Acre $528 / Acre Strata Palma, LLC 6 7 PM 20112 2020‐21 $3,197 / Acre $0 / Acre San Bernardino Medical Center LLC 7 8 TR 20293 2021‐22 $194 / RU $22 / RU ICO Fund VI, LLC 8 9 LM 2019‐021 2021‐22 $815 / Acre $232 / Acre TR 2600 Cajon Industrial LLC ESCALATION OF MAXIMUM SPECIAL TAXES On each July 1, commencing on July 1, 2020 the Maximum Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. 15.c Packet Pg. 825 Attachment: Attachment 3 - Resolution No. 2021-46 - Exhibit B Rate and Method of Apportionment (7092 : Community Facilities District No. City of San Bernardino 14 Community Facilities District No. 2019‐1 (Maintenance Services) APPENDIX B CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES) DESCRIPTION OF AUTHORIZED SERVICES The services which may be funded with proceeds of the special tax of CFD No. 2019‐1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right‐of‐ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following: (a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right‐of‐way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2019‐1; as well as local roads within residential subdivisions located within CFD No. 2019‐1; and any portions adjacent to the properties within CFD No. 2019‐1; and In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment. The above services shall be limited to those provided within the boundaries of CFD No. 2019‐1 or for the benefit of the properties within the boundaries of CFD No. 2019‐1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2019‐1 only to the extent that they are in addition to those provided in the territory of CFD No. 2019‐1 before CFD No. 2019‐1 was created. 15.c Packet Pg. 826 Attachment: Attachment 3 - Resolution No. 2021-46 - Exhibit B Rate and Method of Apportionment (7092 : Community Facilities District No. City of San Bernardino 15 Community Facilities District No. 2019‐1 (Maintenance Services) APPENDIX C CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES) PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA BOUNDARIES 15.c Packet Pg. 827 Attachment: Attachment 3 - Resolution No. 2021-46 - Exhibit B Rate and Method of Apportionment (7092 : Community Facilities District No. 15.cPacket Pg. 828Attachment: Attachment 3 - Resolution No. 2021-46 - Exhibit B Rate and Method of Apportionment (7092 15.cPacket Pg. 829Attachment: Attachment 3 - Resolution No. 2021-46 - Exhibit B Rate and Method of Apportionment (7092 EXHIBIT C CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 8 (March 3, 2021) This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2019-1 (Maintenance Services) (“CFD No. 2019-1”) of the City of San Bernardino: Name of Landowner Number of Acres Owned Total Votes TR 2600 Cajon Industrial LLC 14.44 15 According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of San Bernardino (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax. This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to form the CFD No. 2019-1, City of San Bernardino, County of San Bernardino, State of California. Please advise the City Clerk, at (909) 384-5002 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows: Mail Delivery: If by mail, place ballot in the return envelope provided, and mail no later than February 17, 2021, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted. Personal Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on March 3, 2021, at the Clerk’s office at 201 N. “E” Street, Bldg A, City of San Bernardino, CA 92401. However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on March 3, 2021. Very truly yours, Genoveva Rocha, CMC, City Clerk 15.d Packet Pg. 830 Attachment: Attachment 4 - Resolution No. 2021-46 - Exhibit C Special Election Ballot (7092 : Community Facilities District No. 2019-1 TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE. OFFICIAL SPECIAL TAX BALLOT Name & Address of Property Owner: Assessor’s Parcel Number(s): TR 2600 Cajon Industrial LLC Attn: David Graves 801 Grand Ave. Des Moines, Iowa 50392 0148-122-04 CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT SPECIAL TAX BALLOT MEASURE MARK “YES” OR “NO” WITH AN “X”: Shall the City Council of the City of San Bernardino be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex territory to Community Facilities District No. 2019-1 (Maintenance Services) adopted by the City Council on January 20, 2021 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 8 of Community Facilities District No. 2019-1 (Maintenance Services) City of San Bernardino” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2019-1 (Maintenance Services) in the amount of special taxes collected? YES _________ NO _________ Certification for Special Election Ballot The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__. TR 2600 Cajon Industrial LLC By: David Graves Principal Real Estate Investors Managing Director Signature Print Name Title 15.d Packet Pg. 831 Attachment: Attachment 4 - Resolution No. 2021-46 - Exhibit C Special Election Ballot (7092 : Community Facilities District No. 2019-1 RESOLUTION NO. 2021-47 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA DECLARING ELECTION RESULTS FOR COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 8) WHEREAS, the Mayor and City Council (the "City Council") of the City of San Bernardino (the "City") has heretofore conducted proceedings for the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (the "CFD No. 2019-1") of the City of San Bernardino, including conducting a public hearing pursuant to Section 53339.5 of the Government Code; and WHEREAS, at the conclusion of said public hearing, the City Council adopted a resolution calling a special election for March 3, 2021, and submitting to the qualified electors of the territory to be annexed to the CFD No. 2019-1 the question of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of th e development of said real property as provided in the form of special election ballot; and WHEREAS, a Certificate of Election Results, attached thereto as Exhibit A, dated March 3, 2021, executed by the City Clerk (or, in the absence of the City Clerk, the Acting City Clerk – in either case, the “Clerk”), has been filed with this Council, certifying that a completed ballot has been returned to the Clerk for each landowner-voter(s) eligible to cast a ballot in said special election, with all votes cast as “Yes” votes in favor of the ballot measure, and further certifying on said basis that the special mailed-ballot election was closed; and WHEREAS, this Council has received, reviewed and hereby accepts the Clerk’s Certificate of Election Results and wishes by this resolution to declare the results of the special mailed-ballot election; BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Recitals. This Council finds and determines that the foregoing recitals are true and correct. SECTION 2. Ballot Measure. This Council hereby finds, determines and declares that the ballot measure submitted to the qualified electors of the territory to be annexed to CFD No. 2019-1 has been passed and approved by those qualified electors in accordance with Sections 53328 and 53329 of the Government Code. SECTION 3. Annexation. This Council hereby finds, determines and declares that pursuant to Section 53339.8 of the Government Code, the City Council is authorized to determine that the territory to be annexed has been added to and become a part of the CFD No. 2019-1 with full legal effect, and the City Council is also authorized, pursuant to said Section 15.e Packet Pg. 832 Attachment: Attachment 5 - Resolution No. 2021-47 [Revision 2] (7092 : Community Facilities District No. 2019-1 (Maintenance Services): Resolution No. 2021-47 53339.8, to annually levy special taxes within the territory to be annexed to pay the costs of the services to be provided by the CFD No. 2019-1 as specified in Resolution No. 2021-16 adopted by the City Council on January 20, 2021. The boundaries of the territory annexed are shown on the map entitled, "Annexation Map No. 8 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on February 3, 2021, in Book 89 of Maps of Assessment and Community Facilities Districts at Page 49, in the office of the San Bernardino County Recorder. SECTION 4. Notice of Special Tax Lien. Pursuant to Section 53339.8 of the Government Code and Section 3117.5 of the Streets and Highways Code, the City Clerk shall cause to be filed with the County Recorder of the County of San Bernardino an amendment of the notice of special tax lien and a map of the amended boundaries of the CFD No. 2019-1 including the annexed territory. SECTION 5. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 6. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 7. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 15.e Packet Pg. 833 Attachment: Attachment 5 - Resolution No. 2021-47 [Revision 2] (7092 : Community Facilities District No. 2019-1 (Maintenance Services): Resolution No. 2021-47 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-47, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 15.e Packet Pg. 834 Attachment: Attachment 5 - Resolution No. 2021-47 [Revision 2] (7092 : Community Facilities District No. 2019-1 (Maintenance Services): EXHIBIT A CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 8 CERTIFICATE OF ELECTION RESULTS I, the undersigned, being the City Clerk or the Acting City Clerk, as the case may be, hereby certify: In connection with the special mailed-ballot election called by the City Council (the “City Council”) of the City of San Bernardino (the “City”) on this same date in the proceedings of the City Council for the annexation of territory to the above-entitled community facilities district, I personally received (a) a signed and dated waiver and consent form and (b) a signed, dated and marked election ballot(s) on behalf of the owner(s) listed below, the entity named as the sole landowner of the land within the boundary of the above-entitled community facilities district in the Certificate Regarding Registered Voters and Landowners, date January 26, 2021, and on file in the office of the City Clerk of the City in connection with the City Council actions on that date. Copies of the completed waiver and consent form and the completed ballot received by me and on file in my office are attached hereto. Following such receipt, I have personally, and in the presence of all persons present, reviewed the ballot to confirm that it is properly marked and signed, and I hereby certify the result of that count to be that the ballot was cast in favor of the measure. Based upon the foregoing, all votes that were cast having been cast “Yes”, in favor of the ballot measure, the measure has therefore passed. Landowner Qualified Landowner Votes Votes Cast YES NO TR 2600 Cajon Industrial LLC 14.44 15 I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 2021. Genoveva Rocha, CMC City Clerk City of San Bernardino By: (Attach completed copies of Waiver/Consent and Ballot) 15.f Packet Pg. 835 Attachment: Attachment 6 - Resolution 2021-47 - Exhibit A Certificate of Election Results [Revision 2] (7092 : Community Facilities District No. ORDINANCE NO. MC-1556 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING ORDINANCE NO. MC-1522 AND LEVYING SPECIAL TAXES TO BE COLLECTED DURING FISCAL YEAR 2021-2022 TO PAY THE ANNUAL COSTS OF THE MAINTENANCE AND SERVICING OF LANDSCAPING, LIGHTING, WATER QUALITY IMPROVEMENTS, GRAFFITI, STREETS, STREET SWEEPING, PARKS AND TRAIL MAINTENANCE, A RESERVE FUND FOR CAPITAL REPLACEMENT, AND ADMINISTRATIVE EXPENSES WITH RESPECT TO CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) WHEREAS, the Mayor and City Council (the "City Council") of the City of San Bernardino (the "City") has heretofore adopted Resolution No. 2019-81, stating that a community facilities district to be known as "City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services), County of San Bernardino, State of California" (the "Community Facilities District"), is proposed to be established under the provisions of Chapter 2,5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982" (the "Act"), and fixing the time and place for a public hearing on the formation of the Community Facilities District; and WHEREAS, notice was published and mailed to the owners of the property in the Community Facilities District as required by law relative to the intention of the City Council to establish the Community Facilities District and the levy of the special taxes therein to provide certain services, and of the time and place of said public hearing; and WHEREAS, on January 20, 2021, at the time and place specified in said published and mailed notice, the City Council opened and held a public hearing as required by law relative to the formation of the Community Facilities District, the levy of the special taxes therein and the provision of services by the Community Facilities District; and WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District, the levy of the special taxes and the provision of services therein were heard, and a full and fair hearing was held; and WHEREAS, subsequent to said hearing, the City Council adopted resolutions entitled "Resolution of the City Council of the City of San Bernardino Establishing Calling An Election for the Purpose of Submitting the Question of the Levy of the Proposed Special Tax to the Qualified Electors of the Proposed Community Facilities District; Authorizing the Levy of Special Taxes; and Establishing the Appropriations Limit for the Proposed Community Facilities District" (the "Resolution of Formation") which resolution established the Community Facilities District, authorized the levy of a special tax within the District, and called an election within the 15.g Packet Pg. 836 Attachment: Attachment 7 - Ordinance No. MC-1556 [Revision 1] (7092 : Community Facilities District No. 2019-1 (Maintenance Services): Ordinance MC-1556 2 District on the proposition of levying a special tax, and establishing an appropriation s limit within the District; and WHEREAS, an election was held within the Community Facilities District in which the sole eligible landowner elector approved said propositions by more than the two-thirds vote required by the Act. THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1. Findings. It is necessary that the City Council of the City of San Bernardino levy special taxes pursuant to Sections 53340 of the Government Code to provide and finance the costs of certain types of services, and related costs within the Community Facilities District, including (i) the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, and park maintenance, (ii) a reserve fund for capital replacement, and (iii) administrative expenses, all as more completely described in Exhibit "A" to Resolution No. 2019-81, attached hereto and by this reference made a part hereof. SECTION 2. Levy of Special Taxes. Special taxes shall be and are hereby levied for the Fiscal Year 2021-2022, and each Fiscal Year thereafter, on all parcels of real property within the District which are subject to taxation, which are identified in Exhibit "B" attached hereto. Pursuant to said Section 53340, such special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and Lien priority in case of delinquency as is provided for ad valorem taxes. SECTION 3. Transmittal to County. The City Clerk shall immediately following adoption of this ordinance transmit a copy hereof to the Board of Supervisors and the County Auditor of the County of San Bernardino together with a request that the special taxes as levied hereby be collected on the tax bills for the parcels identified in Exhibit "B" hereto, along with the ordinary ad valorem property taxes to be levied on and collected from the owners of said parcels. SECTION 4. Authorization to Publish Ordinance. City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California. SECTION 5. Effective Date. This ordinance shall become effective thirty (30) days after its adoption. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ____ day of _______, 2021. John Valdivia, Mayor City of San Bernardino 15.g Packet Pg. 837 Attachment: Attachment 7 - Ordinance No. MC-1556 [Revision 1] (7092 : Community Facilities District No. 2019-1 (Maintenance Services): Ordinance MC-1556 3 Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 15.g Packet Pg. 838 Attachment: Attachment 7 - Ordinance No. MC-1556 [Revision 1] (7092 : Community Facilities District No. 2019-1 (Maintenance Services): Ordinance MC-1556 4 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Ordinance No. MC-1556, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the ____ day of ______, 2021. Ordinance No. MC-1556 was approved, passed and adopted at a regular meeting held the ____ day of ______, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of _____, 2021. Genoveva Rocha, CMC, City Clerk 15.g Packet Pg. 839 Attachment: Attachment 7 - Ordinance No. MC-1556 [Revision 1] (7092 : Community Facilities District No. 2019-1 (Maintenance Services): EXHIBIT A DESCRIPTION OF AUTHORIZED SERVICES The services which may be funded with proceeds of the special tax of CFD No. 2019-1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following: (a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2019-1; as well as local roads within residential subdivisions located within CFD No. 2019-1; and any portions adjacent to the properties within CFD No. 2019-1. In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in Exhibit B to this resolution of intention. The above services shall be limited to those provided within the boundaries of CFD No. 2019-1 or for the benefit of the properties within the boundaries of CFD No. 2019-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2019-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2019-1 before CFD No. 2019-1 was created. 15.h Packet Pg. 840 Attachment: Attachment 8 - Ordinance No. MC-1556 - Exhibit A Description of Services (7092 : Community Facilities District No. 2019-1 EXHIBIT B COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) SPECIAL TAX FISCAL YEAR 2021-22 (Effective as of March 3, 2021) ASSESSOR'S PARCEL NUMBERS Annexation Owner Assessor's Parcel Numbers Original Formation Cauffman Family Trust 4/20/98 0142-041-43 Cauffman Family Trust 5/4/11 0142-041-46 1 17329, LLC 0348-111-52, 0261-031-10, -11, and 0261-062-11 thru -14 2 GWS #4 Development, LLC 0141-431-24 3 Devore Storage Facility, LLC 0266-041-39 4 TH Rancho Palma, LLC 0261-181-16, -17 5 Strata Palma, LLC 0261-182-41 6 San Bernardino Medical Center, LLC 0147-114-01 7 ICO Fund VI, LLC 0281-161-48 8 TR 2600 Cajon Industrial LLC 0148-122-04 15.i Packet Pg. 841 Attachment: Attachment 9 - Ordinance No. MC-1556 - Exhibit B Parcel List (7092 : Community Facilities District No. 2019-1 (Maintenance 15.j Packet Pg. 842 Attachment: Attachment 10 - Petition (7092 : Community Facilities District No. 2019-1 (Maintenance Services): Annexation No. 8 (Ward 6))) 15.j Packet Pg. 843 Attachment: Attachment 10 - Petition (7092 : Community Facilities District No. 2019-1 (Maintenance Services): Annexation No. 8 (Ward 6))) PARCEL A EXHIBIT "A" LEGAL DESCRIPTION AFTER LOT MERGER LM2019-021 THOSE PORTIONS OF THE NORTH 24 ACRES OF LOT 2, BLOCK 83, RANCHO SAN BERNARDINO, AS SHOWN BY MAP ON FILE MARCH 10, 1857 IN BOOK 7, PAGE 2, OF MAPS, RECORDS OF SAN BERNARDINO COUNTY; AND THAT PORTION OF THE MUSCUPIABE RANCHO, SITUATED IN SECTION 29, TOWNSHIP 1 NORTH, RANGE 4 WEST, SAN BERNARDINO BASE AND MERIDIAN, IF SAID LINES WERE EXTENDED ACROSS SAID RANCHO, IN THE COUNlY OF SAN BERNARDINO, AS SHOWN BY MAP ON FILE JUNE 21, 1872 IN BOOK 7, PAGE 23 OF MAPS, RECORDS OF SAID COUNTY; AND THAT PORTION OF LOT 1, BLOCK 83 OF RANCHO SAN BERNARDINO, AS SHOWN BY MAP ON FILE MARCH 10, 1857 IN BOOK 7, PAGE 2, OF MAPS, RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: ,... BEGINNING AT THE INTERSECTION OF THE NORTH LINE OF SAID LOT 2, BLOCK 83, RANCHO SAN BERNARDINO WITH THE SOUTHWESTERLY LINE OF CAJON BOULEVARD HAVING A SOUTHWESTERLY 30.00 FOOT HALF-WIDTH; THENCE ALONG THE SAID SOUTHWESTERLY LINE NORTH 38° 33' 35" WEST 73 .70 FEET TO AN INTERSECTION WITH THE NORTHEASTERLY PROLONGATION OF A LINE PARALLEL AND 10 FEET NORTHWESTERLY OF, MEASURE AT RIGHT ANGLES FROM THE CENTER LINE OF THAT CERTAIN DRAINAGE EASEMENT, IN FAVOR OF SAN BERNARDINO COUNTY FLOOD CONTROL DISTRICT, AS DESCRIBED IN DEED RECORDED JULY o,, 1954 AS INSTRUMENT NO� 471, IN BOOK 3418, PAGE 383, OF OFFICIAL RECORD, SAID COUNTY; THENCE ALONG SAID PARALLEL UNE SOUTH 440 57' 30" EAST 1075.61 FEET TO THE BEGINNING OF A TANGENT CURVE SOUTHEASTERLY HAVING A RADIUS OF 335 FEET; THENCE SOVTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 16° 09' 10" A DISTANCE OF 99.44 FEET TO THE EAST LINE OF MEDICAL CENTER DRIVE (FORMERLY MUSCOTT STREET) HAVING A EASTERLY 41.25 FOOT t-fALF-WIDTH; THENCE ALONG SAID EAST LINE OF MEDICAL CENTER DRIVE SOUTH o0 06' 46" EAST 10.91 FEET TO THE SOUTH UNE OF THE SAID NORTH 24 ACRES OF LOT 2, BLOCK 83;.THENCE ALONG SAID SOUTH LINE OF SAID NORTH 24 ACRES OF LOT 2, BLOCK 83 SOUTH 89° 52' 31" EAST 1249.95 FEET TO A POINT ON THE WESTERLY LINE OF WESTERN AVENUE HAVING A WESTERLY 30.00 FOOT HALF-WIDTH; THENCE ALONG THE WESTERLY LINE OF SAID WESTERN AVENUE NEXT THREE (3) COURSES NORTH 00 ° 00' 14a EAST 37.58 FEET, TO BEGINNING OF A TANGENT CURVE SOUTHEASTERLY HAVING A RADIUS OF 130.00 FEET; THEN NORTHEASTERLY ALONG SAID OJRVE THROUGH A CENTRAL ANGLE OF 51° 01' 15" A DISfANCE OF 115.76 FEET; NORTH 51 o 01' 29" EAST 36.53 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE NORTHERLY, HAVING A RADIUS OF 5869.65 FEET WITH RADIAL BEARING OF SOUTH 51° 21' 56" WEST, ALSO BEING THE SOUTHWESTERLY LINE OF SAID CAJON BOULEVARD, HAVING A SOUTHWESTERLY 60.00 FOOT HALF-WIDTH; THENCE COl'fTINUiNG ALONG SOUTHWESTERLY LINE OF SAID CAJON BOULEVARD ALONG SAID QJRVE NORTHWESTERLY TI-fROUGH A CENlRAL ANGLE OF 00° 05' 32" A DISTANCE OF 9.45 FEET; THENCE CONTINUING ALONG SAID SOlJTHWESTERL Y LINE OF SAID CAJON BOULEVARD NORTH 38° 32' 32" WEST 797.14 TO THE NORTH LINE OF SAID LOT 2, BLOCK 83; THENCE ALONG SAID NORTH UNE OF SAID LOT 2, BLOCK 83, SOUTH 89° 52' 55" EAST 38.42 FEET TO THE POINT OF BEGINNING.Page 1 of2 15.j Packet Pg. 844 Attachment: Attachment 10 - Petition (7092 : Community Facilities District No. 2019-1 (Maintenance Services): Annexation No. 8 (Ward 6))) 15.j Packet Pg. 845 Attachment: Attachment 10 - Petition (7092 : Community Facilities District No. 2019-1 (Maintenance Services): Annexation No. 8 (Ward 6))) 13.677 ACRES. MORE OR LESS EXHIBIT B LOT MERGER NO. LM 2019-021 LEGEND MERGER BOUNDARY LOT LINE TO BE MERGED - - - - - - NORTH LINE OF LOT 2, BLOCK 83,PER BOOK 7, PAGE 2 .. -. -.. -----------------•· -------. ---_ _\ --------------------- � I � SCALE: ...J � a� I� 1"=260' '/ ' 6=16"09'10"R=335.00' L=94.44' T=47.54' LOT LINE TO BE MERGED LOT LINE TO BE MERG N51 "01 6=0"05'32" R=5869.65' L=9.45' S)·T=4.72' �� ��,� ':-...fl,,._ �� .O,;:;Q"()5'32"R=5869.65'L=9.45' T=4.72' � .0.=51"01'15"R=130.00' L=115.76' T=-62.04' J NOO"O SEE DETAIL •A" N89°52'31"W 1249.95' :' IV6t - ' 24TI-I : .,,,. \ STREET : .,.o.. ' 37.5 : · J,s, R '--THE SOUTH LINE OF THE NORTH 24 LSEE DETAIL "8" �� A CR ES OF LOT 2, BLOCK 83, R.S.B. PER RS 67/84 OWNERS NAMES: APN: 0148-122-03-l APN: 0148-181-01 I MVP SAN APN: 0148-022-07 BERNARDINO CAJON, LLC PREPARED UNDER THE SUPERVISION OF: ROBERT FILLMORE GREFE.Ci. 33052 z. .... i7-DATE: Page 1 of 1 0 0:::w 1-z w(.) DETAIL "8" SCALE: 1•=80' 15.j Packet Pg. 846 Attachment: Attachment 10 - Petition (7092 : Community Facilities District No. 2019-1 (Maintenance Services): Annexation No. 8 (Ward 6))) PROJECT MAP CFD NO. 2019-1 (MAINTENANCE SERVICES) TAX ZONE 9 15.kPacket Pg. 847Attachment: Attachment 11 - Location Map (7092 : Community Facilities District No. 2019-1 (Maintenance Public Hearing CFD No. 2019-1 Annexation No. 8: 0148-122-04 (2600 Cajon Industrial) Presented by Alex Qishta Deputy of Public Wo rks/City Engineer 15.l Packet Pg. 848 Attachment: Attachment 12 - PowerPoint Presentation (7092 : Community Facilities District No. 2019-1 Public Hearing on CFD 2019-1 Annexation No. 8 Recommended Action 1.CITY COUNCIL INITIATE ANNEXATION OF TERRITORY TO CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO.2019-1 (MAINTENANCE SERVICES)("CFD NO.2019-1"OR "CFD")BY TA KING THE FOLLOWING ACTIONS: A.HOLD PUBLIC HEARING, B.ADOPT A RESOLUTION CALLING THE ELECTION, C.HOLD A SPECIAL LANDOWNER ELECTION AND CANVASS THE ELECTION, D.ADOPT A RESOLUTION DECLARING RESULTS OF SPECIAL LANDOWNER ELECTION; AND 2.UPON APPROVAL OF THE PRECEDING RESOLUTIONS,INTRODUCE AN ORDINANCE AMENDING ORDINANCE NO.MC-1522 AND LEVYING AND APPORTIONING THE SPECIAL TA X IN CFD NO.2019-1 (AS IT NOW EXISTS AND WILL EXIST IN THE FUTURE);AND 3.SCHEDULE THE FINAL READING AND ADOPTION OF THE AMENDED ORDINANCE FOR MARCH 17,2021. 15.l Packet Pg. 849 Attachment: Attachment 12 - PowerPoint Presentation (7092 : Community Facilities District No. 2019-1 Public Hearing on CFD 2019-1 Annexation No. 8 Discussion •The Property Owner,TR 2600 Cajon Industrial LLC,has requested the City assist them in annexing territory into CFD No. 2019-1 to cover the costs associated with the maintenance of Public Improvements. •The area proposed within Annexation No. 8 includes one parcel APN 0148-122-01. •On January 20,2021 the City Council adopted Resolution No. 2021-16,a Resolution of Intention to annex these properties into CFD No. 2019-1 and hold a Public Hearing on March 3,2021. The property owner consented to waiving certain time restriction and conduct the election the same night. 15.l Packet Pg. 850 Attachment: Attachment 12 - PowerPoint Presentation (7092 : Community Facilities District No. 2019-1 Public Hearing on CFD 2019-1 Annexation No. 8 Discussion (Cont.) •The proposed maximum annual tax of $1,047 per acre will be included in CFD No. 2019-1 as Tax Zone 9. •The maximum annual tax is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. 15.l Packet Pg. 851 Attachment: Attachment 12 - PowerPoint Presentation (7092 : Community Facilities District No. 2019-1 Public Hearing on CFD 2019-1 Annexation No. 8 Discussion (Cont.) •The services, which may be funded with proceeds of the special tax include: •All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way •Public lighting including street lights and traffic signals, •Maintenance of streets, including pavement management, and street sweeping, •Maintenance and operation of water quality improvements including storm drainage and flood protection facilities •In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds. 15.l Packet Pg. 852 Attachment: Attachment 12 - PowerPoint Presentation (7092 : Community Facilities District No. 2019-1 Project Location 15.l Packet Pg. 853 Attachment: Attachment 12 - PowerPoint Presentation (7092 : Community Facilities District No. 2019-1 Public Hearing on CFD 2019-1 Annexation No. 8 Fiscal Impact •It is anticipated that at build-out the total Special Tax revenues to pay for maintenance costs will be approximately $14,099. All costs associated with the annexation is borne by the Developer. There is no fiscal impact to the City’s General Fund. 15.l Packet Pg. 854 Attachment: Attachment 12 - PowerPoint Presentation (7092 : Community Facilities District No. 2019-1 Questions? 15.l Packet Pg. 855 Attachment: Attachment 12 - PowerPoint Presentation (7092 : Community Facilities District No. 2019-1 Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Genoveva Rocha, City Clerk Subject: Biennial Review and Amendments to the City's Conflict of Interest Code Recommendation Adopt Resolution No. 2021-48 of the Mayor and City Council of the City of San Bernardino, California, approving and adopting the amended Conflict of Interest Code pursuant to the Political Reform Act of 1974. Background The Political Reform Act of 1974, Government Code Section 81000 et seq. (the “Act”), requires all public agencies to adopt and maintain a Conflict of Interest Code. The Act further requires that agencies regularly review and update their Codes as necessary as directed by the code-reviewing body or when change is necessitated by changed circumstances (Sections 87306 and 87306.5). A Conflict of Interest Code requires certain employees who are most likely to be in a government decision making capacity and where potential conflicts may occur to file an annual disclosure form. This Statement of Economic Interest Form, also known as the Form 700, provides transparency and ensures accountability in two ways: It provides necessary information to the public about an off icial’s personal financial interests to ensure that officials are making decisions in the best interest of the public and not enhancing their personal finances; and It serves as a reminder to the public official of potential conflicts of interest so th e official can abstain from making or participating in governmental decisions that are deemed conflicts of interest. Discussion Pursuant to the Political Reform Act (the “Act”), the City Council directed staff to: (1) conduct a review of the City’s Conflict of Interest Code (“Code”) to determine if a change in the Code was necessary; (2) file a biennial notice regarding the results of the review no later than required deadline and (3) amend the City’s Code pursuant to the act, if necessary. During the review process, staff found that updates and amendments to the City’s Conflict of Interest Code are necessary. A redlined version of the proposed amended 16 Packet Pg. 856 6960 Page 2 Code is attached. The revised disclosure categories are: Category 1: All investments and business positions and sources of income, including gifts, loans and travel payments, that are located in, do business in, or own real property within the jurisdiction of the City. Category 2: All interests in real property which is located in whole or in part within, or not more than two (2) miles outside, the boundaries of the City, including any leasehold, beneficial or ownership interest or option to acquire property. Category 3: All investments and business positions in, business entities, and sources of income, including gifts, loans and travel payments, that are engaged in land development, construction or the acquisition or sale of real property within the jurisdiction of the City. Category 4: All investments, business positions and income from business entities and sources of income, including gifts, loans and travel payments, that provide services, products, materials, machinery, vehicles or equipment of a type purchased or leased by the City. Category 5: All investments, business positions and income, including gifts, loans and travel payments, that provide services, products, materials, machinery, vehicles or equipment of a type purchased or leased by the designated position’s department, unit or division. Category 6: All investment and business positions in business entities and sources of income, including gifts, loans and travel payments, subject to the regulatory, permit, licensing authority of the designated employee’s department, unit or division. Category 7: All investments and business positions in business entities, and sources of income, including gifts, loans and travel payments, or income from a nonprofit organization, if the source is of the type to receive grants or other monies from or through the City or its subdivisions. The proposed revisions are based on the establishment and recognition of new positions that must be designated, the revision of titles of existing positions, the revision of disclosure categories, deletes titles of positions that have been abolished and/or positions that no longer make or participate in making governmental decisions and includes language re: e-filing with the FPPC and declare officials who must file pursuant to Section 87200 of the Political Reform Act including officials who manage public investments. 2020-2025 Key Strategic Targets and Goals The request for adopting the amended conflict of interest code aligns with Key Target No. 1b: Financial Stability - Minimize Risk and litigation exposure. The code helps 16 Packet Pg. 857 6960 Page 3 identify potential conflicts of interest; the law requires public officials and employees in designated positions in a conflict of interest code to report their financial interests on a form called Statement of Economic Interests (Form 700). Fiscal Impact No fiscal impact to the City. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-48 approving and adopting the amended Conflict of Interest Code pursuant to the Political Reform Act of 1974. Attachments Attachment 1 Resolution 2021-48; Attachment 2 Resolution 2021-48; Exhibit A - Conflict of Interest Code (Legislative Version) Attachment 3 Conflict of Interest Code (Clean Version) Ward: All Synopsis of Previous Council Actions: January 17, 2018 The Mayor and City Council adopted Resolution No. 2018-14, amending the City’s Conflict of Interest Code. 16 Packet Pg. 858 RESOLUTION NO. 2021-48 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ADOPTING AN AMENDED CONFLICT OF INTEREST CODE PURSUANT TO THE POLITICAL REFORM ACT OF 1974 WHEREAS, the State of California enacted the Political Reform Act of 1974, Government Code Section 81000 et seq. (the “Act”), which contains provisions relating to conflicts of interest which potentially affect all officers, employees and consultants of the City of San Bernardino (the “City”) and requires all public agencies to adopt and promulgate a Conflict of Interest Code; and WHEREAS, the City Council adopted a Conflict of Interest Code (the “Code”) in compliance with the Act which was last amended January 17, 2018; and WHEREAS, subsequent changed circumstances within the City have made it advisable and necessary pursuant to Sections 87306 and 87307 of the Act to amend and update the City’s Code; and WHEREAS, the potential penalties for violation of the provisions of the Act are substantial and may include criminal and civil liability, as well as equitable relief which could result in the City being restrained or prevented from acting in cases where the provisions of the Act may have been violated; and WHEREAS, notice of the time and place of a public meeting on, and of consideration by the City Council of, the proposed amended Code was provided each affected designated employee and publicly posted for review; and WHEREAS, a public meeting was held upon the proposed amended Code at a regular meeting of the City Council on March 3, 2021, at which all present were given an opportunity to be heard on the proposed amended Code. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Council does hereby adopt the proposed amended Conflict of Interest Code, a copy of which is attached hereto and shall be on file with the City Clerk and available to the public for inspection and copying during regular business hours; and 16.a Packet Pg. 859 Attachment: Resolution No. 2021-48 [Revision 1] (6960 : Biennial Review and Amendments to the City's Conflict of Interest Code) Resolution 2021-48 SECTION 3. The City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 5. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 3rd day of March 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 16.a Packet Pg. 860 Attachment: Resolution No. 2021-48 [Revision 1] (6960 : Biennial Review and Amendments to the City's Conflict of Interest Code) Resolution 2021-48 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-48, adopted at a regular meeting held on the 3rd day of March 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 16.a Packet Pg. 861 Attachment: Resolution No. 2021-48 [Revision 1] (6960 : Biennial Review and Amendments to the City's Conflict of Interest Code) LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.2 BBK – September 2018 December 2020 LEGISLATIVE VERSION (SHOWS CHANGES MADE) CONFLICT OF INTEREST CODE OF THE CITY OF SAN BERNARDINO 16.b Packet Pg. 862 Attachment: Attachment 1 - City of San Bernardino Conflict of Interest Code - 2020 (Legislative) (6960 : Biennial Review and Amendments to LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.2 1 BBK – September 2018 December 2020 City of San Bernardino Conflict of Interest Code CONFLICT OF INTEREST CODE OF THE CITY OF SAN BERNARDINO (Amended January 17, 2018 March 3, 2021) The California Political Reform Act requires every local government agency to adopt a formal Conflict of Interest Code, review its code every two years and make amendments as needed. A Conflict of Interest Code requires certain employees who are most likely to be in government decision making capacity and where potential conflicts may occur to file an annual disclosure form. This Statement of Economic Interest Form, also known as the Form 700, provides transparency and ensures accountability in two ways: • It provides necessary information to the public about an official’s personal financial interests to ensure that officials are making decisions in the best interest of the public and not enhancing their personal finances; and •It serves as a reminder to the public official of potential conflicts of interest so the official can abstain from making or participating in governmental decisions that are deemed conflicts of interest. The Political Reform Act (Gov. Code § 81000, et seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation, (tit. 2 Cal. Code of Regs, § 18730), that contains the terms of a standard conflict of interest code which can be incorporated by reference in an agency’s code. After public notice and hearing, Regulation 18730 may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference. This incorporation page, Regulation 18730 and the attached Appendix designating positions and establishing disclosure categories, shall constitute the Conflict of Interest Code of the City of San Bernardino (“City"). The Mayor, Members of the City Council and Planning Commission, the City Manager, the City Attorney and the City Treasurer, shall electronically file their annual statements of economic interests directly with the Fair Political Practices Commission. 16.b Packet Pg. 863 Attachment: Attachment 1 - City of San Bernardino Conflict of Interest Code - 2020 (Legislative) (6960 : Biennial Review and Amendments to LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.2 2 BBK – September 2018 December 2020 All other officials and designated positions required to submit a statement of economic interests shall file their statements with the City Clerk as the City’s Filing Officer. All officials and designated positions required to submit a statement of economic Interests shall file their statements with the City Clerk as the Town’s Filing Officer. The City Clerk shall make and retain a copy of all statements filed by the Mayor, members of the City Council, the City Manager, the City Attorney and the City Treasurer, and forward the originals of these statements to the Fair Political Practices Commission. The City Clerk shall retain the original statements filed by all other officials and designated positions and will make all retained statements available for public inspection and reproduction during regular business hours. (Gov. Code § 81008) 16.b Packet Pg. 864 Attachment: Attachment 1 - City of San Bernardino Conflict of Interest Code - 2020 (Legislative) (6960 : Biennial Review and Amendments to LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.2 App. A-1 BBK – September 2018 December 2020 APPENDIX CONFLICT OF INTEREST CODE OF THE CITY OF SAN BERNARDINO (Amended January 17, 2018 March 3, 2021) PART “A” The Mayor, Members of the City Council and Planning Commission, the City Manager, the City Attorney, the City Treasurer, and all Other City Officials who manage public investments as defined by 2 Cal. Code of Regs. § 18700.3(b), are NOT subject to the City’s Code but must file disclosure statements under Government Code Section 87200 et seq. [Regs. § 18730(b)(3)] OFFICIALS WHO MANAGE PUBLIC INVESTMENTS It has been determined that the positions listed below are Other City Officials who manage public investments.1 These positions are listed here for informational purposes only. Finance Manager/Deputy City Treasurer Investment Consultants 1 Individuals holding one of the above-listed positions may contact the Fair Political Practices Commission for assistance or written advice regarding their filing obligations if they believe that their position has been categorized incorrectly. The Fair Political Practices Commission makes the final determination whether a position is covered by § 87200. 16.b Packet Pg. 865 Attachment: Attachment 1 - City of San Bernardino Conflict of Interest Code - 2020 (Legislative) (6960 : Biennial Review and Amendments to LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.2 App. A-2 BBK – September 2018 December 2020 DESIGNATED POSITIONS GOVERNED BY THE CONFLICT OF INTEREST CODE [For ease of reference the positions have been listed alphabetically and separation of departments have been removed] Accounting Manager 1 5 [narrowed] Administrative Analyst II (ALL)[combined] 1 5 [narrowed] Administrative Analyst II [combined with title above]1 Administrative Analyst II [combined with title above]1 Administrative Analyst [combined with title above]1 Administrative Division Manager 5 Administrative Services Manager 1 5 [narrowed] Administrative Services Officer 1 5 [narrowed] Administrative Services Supervisor 1 5 [narrowed] Animal Control Manager 5 Applications Development Manager 6 5 [same] Assessment District/Real Property Manager 1 Asset Forfeiture Specialist 1 Assistant Chief of Police 1 5 [narrowed] Assistant City Clerk 5 Assistant City Manager 1, 2 [same] Assistant Planner 1 3, 5, 6 [narrowed] Assistant Purchasing Agent 1 4 [narrowed] Assistant to the Mayor 1 5 [narrowed] Associate Planner 1 3, 5, 6 [narrowed] Budget Officer 1 4 [narrowed] Building Inspector I (ALL)[combined] 1 3, 5, 6 [narrowed] DESIGNATED POSITIONS’ TITLE OR FUNCTION DISCLOSURE CATEGORIES ASSIGNED 16.b Packet Pg. 866 Attachment: Attachment 1 - City of San Bernardino Conflict of Interest Code - 2020 (Legislative) (6960 : Biennial Review and Amendments to LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.2 App. A-3 BBK – September 2018 December 2020 DESIGNATED POSITIONS’ TITLE OR FUNCTION DISCLOSURE CATEGORIES ASSIGNED Building Inspector II [combined with title above]1 Building Maintenance Division Manager 1 3, 5 [narrowed] Building Official 1 3, 5, 6 [narrowed] Business Registration Manager 1 5, 6 [narrowed] CATV Broadcast Engineering Coordinator 5 Chief Assistant City Attorney 1, 2 [same] Chief Building Official and Safety Division Manager 3, 5, 6 Chief Deputy City Clerk 1, 2 [same] Chief of Police 1 5 [narrowed] Chief of Staff 1 5 [narrowed] City Clerk [Previously Elected now Appointed] 1 5 [narrowed] City Engineer 1, 2 [same] Code Enforcement Division Manager 1 5 [narrowed] Code Enforcement Officer I (ALL) [combined] 1 5 [narrowed] Community Development Block Grant (CDBG)/Housing Program Assistant 5, 7 Code Enforcement Officer II [combined with title above]1 Community Development Block Grant (CBDG) Coordinator 5, 7 Community Intervention Program Manager 5, 7 Community Policing Specialist 1 5 [narrowed] Community Recreation Center Supervisor 2,6 5 [narrowed] Community Recreation Manager 2,6 5 [narrowed] Community Recreation Program Coordinator 2,6 5 [narrowed] Community Recreation Program Supervisor (Soccer) 6 5 [same] Community Relations Supervisor Assistant to the City Manager 5 Community Services Officer Supervisor 5 Construction Inspector I/11(ALL)[combined] 1 3, 6 [narrowed] Construction Inspector I/NPDES [combined with title above]1 Construction Inspector II [combined with title above]1 Construction/Survey Manager 3, 6 2, 5 [same] 16.b Packet Pg. 867 Attachment: Attachment 1 - City of San Bernardino Conflict of Interest Code - 2020 (Legislative) (6960 : Biennial Review and Amendments to LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.2 App. A-4 BBK – September 2018 December 2020 DESIGNATED POSITIONS’ TITLE OR FUNCTION DISCLOSURE CATEGORIES ASSIGNED Coordinator of Volunteers 2,6 Council Administrative Supervisor 5 Custodial Maintenance Supervisor 5 Deputy City Attorney I (ALL) [combined] 1, 2 [same] Deputy City Attorney II [combined with title above]1 Deputy City Attorney III [combined with title above]1 Deputy City Attorney IV [combined with title above]1 Deputy City Clerk 1 5 [narrowed] Deputy City Manager 1, 2 Deputy Director City Engineer 1, 2 Deputy Director City Planner 1, 2 Deputy Director of Parks, Recreation & Community 1, 2 [same] Deputy Director of Public Works-City Engineer 1, 2 Deputy Director of Finance Dept.1 5 [narrowed] Deputy Engineer 1, 2 Deputy General Manager 1, 2 [same] Development Services Technician 1 5 [narrowed] Director of Animal Services 5 Director of Community & Economic Development 1, 2 Director of Community Development 1 Director of Economic Development and Housing 1 Director of Finance 1 4 [narrowed] Director of Human Resources 1 5 [narrowed] Director of IT 1 5 [narrowed] Director of Parks, Recreation & Community Services 1, 2 [same] Director of Public Works 1, 2 [same] Director, Water Reclamation 1 3, 5, 6 [narrowed] Director, Water Utility 1 3, 5, 6 [narrowed] Economic Development Division Manager 1, 2 16.b Packet Pg. 868 Attachment: Attachment 1 - City of San Bernardino Conflict of Interest Code - 2020 (Legislative) (6960 : Biennial Review and Amendments to LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.2 App. A-5 BBK – September 2018 December 2020 DESIGNATED POSITIONS’ TITLE OR FUNCTION DISCLOSURE CATEGORIES ASSIGNED Electrical, Instrumentation, and SCADA Superintendent 5, 6, 7 [narrowed] Emergency Operations Manager 5 Engineering Assistant I (ALL) [combined]1 2, 3, 6 [narrowed] Engineering Assistant I [combined with title above]3,6 Engineering Assistant II [combined with title above]1 Engineering Assistant II [combined with title above]3,6 Engineering Assistant III [combined with title above]1 Engineering Associate 3,6 2, 5 [same] Engineering Manager 1 2, 3, 5 narrowed] Environmental Control Officer 2, 5, 6, 7 narrowed] Environmental Projects Manager Specialist 1 2, 5 [narrowed] Equipment Maintenance Manager 2,6 5 [narrowed] Equipment Maintenance Supervisor 2,6 5 [narrowed] Executive Staff Assistant to the City Council 1 5 [narrowed] Facilities & Fleet Maintenance Services Division Manager 2,6 5 [narrowed] Facilities Maintenance Supervisor 5 Fleet/Warehouse Supervisor 4 5, 6, 7 [narrowed] Forestry Supervisor 5 General Manager – Water 1, 2 [same] GIS Administrator 6 5 [same] Housing Compliance Officer 5 Housing Manager 1, 2 [same] HR Analyst 2,6 5 [narrowed] Human Resources Division Manager 6 5 [same] HVAC Supervisor 2 5 [narrowed] IEMG Broadcast Engineering Coordinator 2 5 [narrowed] IT Operations Supervisor 6 5 [same] Landscape Inspector I/II 2,6 3, 5 [same] Landscape Maintenance District Supervisor 2, 6 3, 5 [same] 16.b Packet Pg. 869 Attachment: Attachment 1 - City of San Bernardino Conflict of Interest Code - 2020 (Legislative) (6960 : Biennial Review and Amendments to LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.2 App. A-6 BBK – September 2018 December 2020 DESIGNATED POSITIONS’ TITLE OR FUNCTION DISCLOSURE CATEGORIES ASSIGNED Library Director 1 5 [narrowed] Library Administrative Supervisor 5 Library IT Manager 5 Maintenance Supervisor 1 5 [narrowed] Manager of Communications 1 5 [narrowed] Operations & Maintenance Division Manager 1 2, 5 [narrowed] Parks and Landscape Supervisor 5 Parks Construction Lead Worker 2, 6 5 [narrowed] Parks Maintenance Division Manager 1 5 [narrowed] Parks Maintenance Supervisor 2,6 Parks Superintendent 3, 5 Planning Division Manager 2, 3, 5, 6 Plans Examiner 1 2, 3, 5, 6 [narrowed] Police Captain 1 5 [narrowed] Police Lieutenant 1 5 [narrowed] Police Personnel & Training Manager 5 Principal Engineer, Water Dept.1 2, 3, 5 [narrowed] Principal Engineer, Public Works Dept.3, 6 2, 5 [same] Principal Planner 2, 3, 5, 6 Procurement/Contract Support Services Division Manager 1 5 [narrowed] Project Manager 1 2, 3, 5 [narrowed] Project Manager of Community Development Programs 5 Project Manager of Housing Programs 3, 5 Public Information Officer 5 Public Safety IT Manager 6 5 [narrowed] Purchasing Agent [narrowed]1 Purchasing Supervisor 5,6,7 4 [narrowed] Real Property Manager 1, 2 Real Property Specialist 1, 2 [same] 16.b Packet Pg. 870 Attachment: Attachment 1 - City of San Bernardino Conflict of Interest Code - 2020 (Legislative) (6960 : Biennial Review and Amendments to LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.2 App. A-7 BBK – September 2018 December 2020 DESIGNATED POSITIONS’ TITLE OR FUNCTION DISCLOSURE CATEGORIES ASSIGNED Recreation and Community Services Division Manager 5 Recreation Division Manager 1 Recreation Therapist 2,6 5 [narrowed] Regulatory and Compliance Manager 1 Retired & Senior Volunteer Program Manager 2, 6 5 [narrowed] Risk Division Manager 5, 8 Senior Administrative Analyst 1 5 [narrowed] Senior Civil Engineer 2, 3, 5, 6 [expanded] Senior Civil Engineer/Division Manager 1 2, 3, 5, 6 [narrowed] Senior Code Enforcement Officer 5 Senior Companion Program Manager 2,6 5 [narrowed] Senior Deputy City Attorney 1, 2 [same] Senior HR/Risk Analyst 2,6 5 [narrowed] Senior Human Resources Technician 5 Senior Librarian 5 Senior Management Analyst 5 Senior Network Administrator 6 5 [same] Senior Network Specialist 5 Senior Nutrition Food Services Supervisor 2, 6 5 [narrowed] Senior Planner 1 2, 3, 5 [narrowed] Senior Plans Examiner 2, 3, 5, 6 Sewer Maintenance Supervisor 1 5 [narrowed] Street Signal/Lighting Supervisor 1 5 [narrowed] Supervising Animal Control Officer 5 Supervising City Attorney Investigator 1 Supervising Code Enforcement Officer 5 Survey Supervisor 3, 5 Traffic Engineer 1 2, 3, 5 [narrowed] Traffic Engineering Associate 2, 3, 6, 5 [narrowed] 16.b Packet Pg. 871 Attachment: Attachment 1 - City of San Bernardino Conflict of Interest Code - 2020 (Legislative) (6960 : Biennial Review and Amendments to LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.2 App. A-8 BBK – September 2018 December 2020 DESIGNATED POSITIONS’ TITLE OR FUNCTION DISCLOSURE CATEGORIES ASSIGNED Traffic Operations Systems Analyst 3,6 2, 3, 5 [narrowed] Treasury Supervisor 1, 2 Water Reclamation Maintenance Superintendent 5, 6, 7 [narrowed] Water Reclamation Operations Superintendent 5, 6, 7 [narrowed] Water Utility Distribution Superintendent 5, 6, 7 [narrowed] Water Utility Operations Superintendent 5, 6, 7 [narrowed] Water Utility Water Quality Control Officer 5, 6, 7 [narrowed] DESIGNATED BOARDS/COMMITTEES/COMMISSIONS Oversight Board for the City of San Bernardino as 1, 2 [same] Successor Agency to the Redevelopment Agency of the City of San Bernardino Board of Building Commissioners 1, 2 [same] Personnel Commission 1, 2 [same] Bureau of Franchises 1, 2 [same] Board of Library Trustees 1, 2 [same] Mobile Home Board 1, 2 [same] Board of Police Commissioners 1, 2 [same] Board of Water Commissioners 1, 2 [same] Consultants Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category, Category 1. Consultants and New Positions2 Appendix A – Amended 1/17/2018 2 Individuals serving as a consultant as defined in FPPC Reg. 18700.3(a) or in a new position must file under the broadest disclosure category set forth in this Code subject to the following limitation: The City Manager may determine that, due to the range of duties or contractual obligations, it is more appropriate to designate a limited disclosure requirement. A clear explanation of the duties and a statement of the extent of the disclosure requirements must be in a written document. The City Manager’s determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code. 16.b Packet Pg. 872 Attachment: Attachment 1 - City of San Bernardino Conflict of Interest Code - 2020 (Legislative) (6960 : Biennial Review and Amendments to LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.2 App. B-1 BBK – September 2018 December 2020 PART “B" DISCLOSURE CATEGORIES The disclosure categories listed below identify the types of economic interests that the designated position must disclose for each disclosure category to which he or she is assigned.3 “Investment” means financial interest in any business entity (including a consulting business or other independent contracting business) and are reportable if they are either located in, doing business in, planning to do business in, or have done business during the previous two years in the jurisdiction of the City. The City’s disclosure categories are: Category 1 (Full disclosure). Interests in real property located within the jurisdiction of the City of San Bernardino or within two miles of the boundaries of the jurisdiction or within two miles of any land owned or used by the agency, as well as investments, business positions and sources of income, including gifts loans and travel payments. Category 2 1:All investments, and business positions and sources of income, including gifts loans and travel payments, that are located in, do business in, or own real property within the jurisdiction of the City. Category 3 2: All Interests interests in real property which is located in whole or in part within,the jurisdiction of the City of San Bernardino or within two miles of any land owned or used of the City of San Bernardino or not more than two (2) miles outside, the boundaries of the City, including any leasehold, beneficial or ownership interest or option to acquire property. Category 4 3:All investments and business positions in, and sources of income from, business entities, and sources of income, including gifts, loans and travel payments, that are engaged in land development, construction or the acquisition or sale of real property within the jurisdiction of the City. Category 5 4:All investments, business positions and income from business entities and sources of income, including gifts, loans and travel payments, that provide services, products,supplies, materials, machinery, vehicles or equipment of a type purchased or leased by the City. 3 This Conflict of Interest Code does not require the reporting of gifts from outside this agency’s jurisdiction if the source does not have some connection with or bearing upon the functions or duties of the position. (Reg. 18730.1) 16.b Packet Pg. 873 Attachment: Attachment 1 - City of San Bernardino Conflict of Interest Code - 2020 (Legislative) (6960 : Biennial Review and Amendments to LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.2 App. B-2 BBK – September 2018 December 2020 Category 6 5:All investments, business positions and income, including gifts, loans and travel payments, that provide services, products, from sources that provide purchased or leased facilities, goods, equipment, vehicles, materials, machinery, vehicles or equipment services, including training or consulting services, of the a type utilized purchased or leased by the designated employee’s position’s department, unit or division. Category 7 6:All investment and business positions In and sources of income from, in business entities and sources of income, including gifts, loans and travel payments, subject to the regulatory, permit, licensing application or other authority or entitlement of the designated employee’s department of the designated employee’s department, unit or division. Category 7: All investments and business positions in business entities, and sources of income, including gifts, loans and travel payments, or income from a nonprofit organization, if the source is of the type to receive grants or other monies from or through the City or its subdivisions. Category 8:All investments and business positions in business entities, and sources of income, including gifts, loans, and travel payments, if such entities or sources have filed claims against the agency in the past 2 years, or have a claim pending before the agency. 16.b Packet Pg. 874 Attachment: Attachment 1 - City of San Bernardino Conflict of Interest Code - 2020 (Legislative) (6960 : Biennial Review and Amendments to LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.3 BBK – December 2020 CONFLICT OF INTEREST CODE OF THE CITY OF SAN BERNARDINO 16.c Packet Pg. 875 Attachment: Attachment 2 - City of San Bernardino Conflict of Interest Code - 2020 ((Final) (6960 : Biennial Review and Amendments to the LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.3 1 BBK – December 2020 CONFLICT OF INTEREST CODE OF THE CITY OF SAN BERNARDINO (Amended March 3, 2021) The Political Reform Act (Gov. Code § 81000, et seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation, (tit. 2 Cal. Code of Regs, § 18730), that contains the terms of a standard conflict of interest code which can be incorporated by reference in an agency’s code. After public notice and hearing, Regulation 18730 may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference. This incorporation page, Regulation 18730 and the attached Appendix designating positions and establishing disclosure categories, shall constitute the Conflict of Interest Code of the City of San Bernardino (“City"). The Mayor, Members of the City Council and Planning Commission, the City Manager, the City Attorney and the City Treasurer, shall electronically file their annual statements of economic interests directly with the Fair Political Practices Commission. All other officials and designated positions required to submit a statement of economic interests shall file their statements with the City Clerk as the City’s Filing Officer. All officials and designated positions required to submit a statement of economic In terests shall file their statements with the City Clerk as the Town’s Filing Officer. The City Clerk shall make and retain a copy of all statements filed by the Mayor, members of the City Council, the City Manager, the City Attorney and the City Treasurer, and forward the originals of these statements to the Fair Political Practices Commission. The City Clerk shall retain the original statements filed by all other officials and designated positions and will make all retained statements available for public inspection and reproduction during regular business hours. (Gov. Code § 81008) 16.c Packet Pg. 876 Attachment: Attachment 2 - City of San Bernardino Conflict of Interest Code - 2020 ((Final) (6960 : Biennial Review and Amendments to the LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.3 App. A-1 BBK – December 2020 APPENDIX CONFLICT OF INTEREST CODE OF THE CITY OF SAN BERNARDINO (Amended March 3, 2021) PART “A” The Mayor, Members of the City Council and Planning Commission, the City Manager, the City Attorney, the City Treasurer, and all Other City Officials who manage public investments as defined by 2 Cal. Code of Regs. § 18700.3(b), are NOT subject to the City’s Code but must file disclosure statements under Government Code Section 87200 et seq. [Regs. § 18730(b)(3)] OFFICIALS WHO MANAGE PUBLIC INVESTMENTS It has been determined that the positions listed below are Other City Officials who manage public investments.1 These positions are listed here for informational purposes only. Finance Manager/Deputy City Treasurer Investment Consultants 1 Individuals holding one of the above-listed positions may contact the Fair Political Practices Commission for assistance or written advice regarding their filing obligations if they believe that their position has been categorized incorrectly. The Fair Political Practices Commission makes the final determination whether a position is covered by § 87200. 16.c Packet Pg. 877 Attachment: Attachment 2 - City of San Bernardino Conflict of Interest Code - 2020 ((Final) (6960 : Biennial Review and Amendments to the LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.3 App. A-2 BBK – December 2020 DESIGNATED POSITIONS GOVERNED BY THE CONFLICT OF INTEREST CODE Accounting Manager 5 Administrative Analyst (ALL) 5 Administrative Division Manager 5 Administrative Services Manager 5 Administrative Services Officer 5 Administrative Services Supervisor 5 Animal Control Manager 5 Applications Development Manager 5 Assistant Chief of Police 5 Assistant City Clerk 5 Assistant City Manager 1, 2 Assistant Planner 3, 5, 6 Assistant Purchasing Agent 4 Assistant to the Mayor 5 Associate Planner 3, 5, 6 Budget Officer 4 Building Inspector (ALL) 3, 5, 6 Building Maintenance Division Manager 3, 5 Building Official 3, 5, 6 Business Registration Manager 5, 6 CATV Broadcast Engineering Coordinator 5 Chief Assistant City Attorney 1, 2 Chief Building Official and Safety Division Manager 3, 5, 6 DESIGNATED POSITIONS’ TITLE OR FUNCTION DISCLOSURE CATEGORIES ASSIGNED 16.c Packet Pg. 878 Attachment: Attachment 2 - City of San Bernardino Conflict of Interest Code - 2020 ((Final) (6960 : Biennial Review and Amendments to the LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.3 App. A-3 BBK – December 2020 DESIGNATED POSITIONS’ TITLE OR FUNCTION DISCLOSURE CATEGORIES ASSIGNED Chief Deputy City Clerk 1, 2 Chief of Police 5 Chief of Staff 5 City Clerk 5 City Engineer 1, 2 Code Enforcement Division Manager 5 Code Enforcement Officer (ALL) 5 Community Development Block Grant (CDBG)/ Housing Program Assistant 5, 7 Community Development Block Grant (CBDG) Coordinator 5, 7 Community Intervention Program Manager 5, 7 Community Policing Specialist 5 Community Recreation Center Supervisor 5 Community Recreation Manager 5 Community Recreation Program Coordinator 5 Community Recreation Program Supervisor (Soccer) 5 Community Relations Supervisor Assistant to the City Manager 5 Community Services Officer Supervisor 5 Construction Inspector (ALL) 3, 6 Construction/Survey Manager 2, 5 Deputy City Attorney (ALL) 1, 2 Deputy City Clerk 5 Deputy City Manager 1, 2 Deputy Director City Engineer 1, 2 Deputy Director City Planner 1, 2 Deputy Director of Parks, Recreation & Community 1, 2 Deputy Director of Public Works-City Engineer 1, 2 Deputy Director of Finance Dept. 5 Deputy Engineer 1, 2 16.c Packet Pg. 879 Attachment: Attachment 2 - City of San Bernardino Conflict of Interest Code - 2020 ((Final) (6960 : Biennial Review and Amendments to the LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.3 App. A-4 BBK – December 2020 DESIGNATED POSITIONS’ TITLE OR FUNCTION DISCLOSURE CATEGORIES ASSIGNED Deputy General Manager 1, 2 Development Services Technician 5 Director of Animal Services 5 Director of Community & Economic Development 1, 2 Director of Finance 4 Director of Human Resources 5 Director of IT 5 Director of Parks, Recreation & Community Services 1, 2 Director of Public Works 1, 2 Director, Water Reclamation 3, 5, 6 Director, Water Utility 3, 5, 6 Economic Development Division Manager 1, 2 Electrical, Instrumentation, and SCADA Superintendent 5 Emergency Operations Manager 5 Engineering Assistant (ALL) 2, 3, 6 Engineering Associate 2, 5 Engineering Manager 2, 3, 5 Environmental Control Officer 2, 5 Environmental Projects Specialist 2, 5 Equipment Maintenance Manager 5 Equipment Maintenance Supervisor 5 Executive Staff Assistant to the City Council 5 Facilities & Fleet Maintenance Division Manager 5 Facilities Maintenance Supervisor 5 Fleet/Warehouse Supervisor 4 Forestry Supervisor 5 General Manager – Water 1, 2 GIS Administrator 5 Housing Compliance Officer 5 16.c Packet Pg. 880 Attachment: Attachment 2 - City of San Bernardino Conflict of Interest Code - 2020 ((Final) (6960 : Biennial Review and Amendments to the LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.3 App. A-5 BBK – December 2020 DESIGNATED POSITIONS’ TITLE OR FUNCTION DISCLOSURE CATEGORIES ASSIGNED Housing Manager 1, 2 HR Analyst 5 Human Resources Division Manager 5 HVAC Supervisor 5 IEMG Broadcast Engineering Coordinator 5 IT Operations Supervisor 5 Landscape Inspector I/II 3, 5 Landscape Maintenance District Supervisor 3, 5 Library Director 5 Library Administrative Supervisor 5 Library IT Manager 5 Maintenance Supervisor 5 Manager of Communications 5 Operations & Maintenance Division Manager 2, 5 Parks and Landscape Supervisor 5 Parks Construction Lead Worker 5 Parks Maintenance Division Manager 5 Parks Superintendent 3, 5 Planning Division Manager 2, 3, 5, 6 Plans Examiner 2, 3, 5, 6 Police Captain 5 Police Lieutenant 5 Police Personnel & Training Manager 5 Principal Engineer, Water Dept. 2, 3, 5 Principal Engineer, Public Works Dept. 2, 5 Principal Planner 2, 3, 5, 6 Procurement/Contract Support Services Division Manager 5 Project Manager 2, 3, 5 Project Manager of Community Development Programs 5 16.c Packet Pg. 881 Attachment: Attachment 2 - City of San Bernardino Conflict of Interest Code - 2020 ((Final) (6960 : Biennial Review and Amendments to the LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.3 App. A-6 BBK – December 2020 DESIGNATED POSITIONS’ TITLE OR FUNCTION DISCLOSURE CATEGORIES ASSIGNED Project Manager of Housing Programs 3, 5 Public Information Officer 5 Public Safety IT Manager 5 Purchasing Supervisor 4 Real Property Manager 1, 2 Real Property Specialist 1, 2 Recreation and Community Services Division Manager 5 Recreation Therapist 5 Retired & Senior Volunteer Program Manager 5 Risk Division Manager 5, 8 Senior Administrative Analyst 5 Senior Civil Engineer 2, 3, 5, 6 Senior Civil Engineer/Division Manager 2, 3, 5, 6 Senior Code Enforcement Officer 5 Senior Companion Program Manager 5 Senior HR/Risk Analyst 5 Senior Human Resources Technician 5 Senior Librarian 5 Senior Management Analyst 5 Senior Network Administrator 5 Senior Network Specialist 5 Senior Nutrition Food Services Supervisor 5 Senior Planner 2, 3, 5 Senior Plans Examiner 2, 3, 5, 6 Sewer Maintenance Supervisor 5 Street Signal/Lighting Supervisor 5 Supervising Animal Control Officer 5 Supervising Code Enforcement Officer 5 Survey Supervisor 3, 5 16.c Packet Pg. 882 Attachment: Attachment 2 - City of San Bernardino Conflict of Interest Code - 2020 ((Final) (6960 : Biennial Review and Amendments to the LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.3 App. A-7 BBK – December 2020 DESIGNATED POSITIONS’ TITLE OR FUNCTION DISCLOSURE CATEGORIES ASSIGNED Traffic Engineer 2, 3, 5 Traffic Engineering Associate 2, 3, 5 Traffic Operations Systems Analyst 2, 3, 5 Treasury Supervisor 1, 2 Water Reclamation Maintenance Superintendent 5 Water Reclamation Operations Superintendent 5 Water Utility Distribution Superintendent 5 Water Utility Operations Superintendent 5 Water Utility Water Quality Control Officer 5 DESIGNATED BOARDS/COMMITTEES/COMMISSIONS Oversight Board for the City of San Bernardino as 1, 2 Successor Agency to the Redevelopment Agency of the City of San Bernardino Board of Building Commissioners 1, 2 Personnel Commission 1, 2 Bureau of Franchises 1, 2 Board of Library Trustees 1, 2 Mobile Home Board 1, 2 Board of Police Commissioners 1, 2 Board of Water Commissioners 1, 2 Consultants Consultants and New Positions2 2 Individuals serving as a consultant as defined in FPPC Reg. 18700.3(a) or in a new position must file under the broadest disclosure category set forth in this Code subject to the following limitation: The City Manager may determine that, due to the range of duties or contractual obligations, it is more appropriate to designate a limited disclosure requirement. A clear explanation of the duties and a statement of the extent of the disclosure requirements must be in a written document. The City Manager’s determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code. 16.c Packet Pg. 883 Attachment: Attachment 2 - City of San Bernardino Conflict of Interest Code - 2020 ((Final) (6960 : Biennial Review and Amendments to the LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.3 App. B-1 BBK – December 2020 PART “B" DISCLOSURE CATEGORIES The disclosure categories listed below identify the types of economic interests that the designated position must disclose for each disclosure category to which he or she is assigned.3 “Investment” means financial interest in any business enti ty (including a consulting business or other independent contracting business) and are reportable if they are either located in, doing business in, planning to do business in, or have done business during the previous two years in the jurisdiction of the C ity. Category 1: All investments and business positions and sources of income, including gifts loans and travel payments, that are located in, do business in, or own real property within the jurisdiction of the City. Category 2: All interests in real property which is located in whole or in part within, or not more than two (2) miles outside, the boundaries of the City, including any leasehold, beneficial or ownership interest or option to acquire property. Category 3: All investments and business positions in, business entities, and sources of income, including gifts, loans and travel payments, that are engaged in land development, construction or the acquisition or sale of real property with in the jurisdiction of the City. Category 4: All investments, business positions and income from business entities and sources of income, including gifts, loans and travel payments, that provide services, products, materials, machinery, vehicles or equipment of a type purchased or leased by the City. Category 5: All investments, business positions and income, including gifts, loans and travel payments, that provide services, products, materials, machinery, vehicles or equipment of a type purchased or leased by the designated position’s department, unit or division. Category 6: All investment and business positions in business entities and sources of income, including gifts, loans and travel payments, subject to the regulatory, permit, licensing authority of the designated employee’s department, unit or division. 3 This Conflict of Interest Code does not require the reporting of gifts from outside this agency’s jurisdiction if the source does not have some connection with or bearing upon the functions or duties of the position. (Reg. 18730.1) 16.c Packet Pg. 884 Attachment: Attachment 2 - City of San Bernardino Conflict of Interest Code - 2020 ((Final) (6960 : Biennial Review and Amendments to the LAW OFFICES OF BEST BEST & KRIEGER LLP 55600.00100\33293381.3 App. B-2 BBK – December 2020 Category 7: All investments and business positions in business entities, and sources of income, including gifts, loans and travel payments, or income from a nonprofit organization, if the source is of the type to receive grants or other monies from or through the City or its subdivisions. Category 8: All investments and business positions in business entities, and sources of income, including gifts, loans, and travel payments, if such entities or sources have filed claims against the agency in the past 2 years, or have a claim pending before the agency. 16.c Packet Pg. 885 Attachment: Attachment 2 - City of San Bernardino Conflict of Interest Code - 2020 ((Final) (6960 : Biennial Review and Amendments to the Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Genoveva Rocha, City Clerk Subject: Approval of the Mayor and City Council Meeting Minutes (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the meeting minutes from the May 6, 2020, February 11, 2021, and February 24, 2021, Mayor and City Council meetings. Attachments Attachment 1 - May 6, 2020 Mayor and City Council Regular Meeting Minutes Attachment 2 - February 11, 2021 Mayor and City Council Special Meeting Minutes Attachment 3 - February 24, 2021 Mayor and City Council Special Meeting Minutes 17 Packet Pg. 886 City of San Bernardino 201 North E Street San Bernardino, CA 92401 http://www.sbcity.org DRAFT MINUTES FOR THE REGULAR MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOIN POWERS FINANCING AUTHORITY WEDNESDAY, MAY 6, 2020 5:30 PM The Regular Meeting of the Mayor and City Counc il of the City of San Bernardino was called to order at 5:30 PM by Mayor Valdivia on Wednesday, May 6, 2020, via web- conference. CALL TO ORDER Attendee Name Title Status Arrived Theodore Sanchez Mayor Pro-Tem, Ward 1 Present Sandra Ibarra Council Member, Ward 2 Present Juan Figueroa Council Member, Ward 3 Present Fred Shorett Council Member, Ward 4 Present Henry Nickel Council Member, Ward 5 Present Bessine L. Richard Council Member, Ward 6 Present James Mulvihill Council Member, Ward 7 Present John Valdivia Mayor Present Genoveva Rocha Acting City Clerk Present Sonia Carvalho City Attorney Present Teri Ledoux City Manager Present Mayor John Valdivia Council Members Theodore Sanchez Sandra Ibarra Juan Figueroa Fred Shorett Henry Nickel Bessine L. Richard Jim Mulvihill 17.a Packet Pg. 887 Attachment: Attachment 1 - 05-06-2020 Draft Regular Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes May 6, 2020 Mayor and City Council of the City of San Bernardino Page 2 Printed 5/28/2020 5:30 P.M. CLOSED SESSION PUBLIC COMMENT There were no public comments received for Closed Session. Mayor Valdivia stated he would be recusing himself from Closed Session Item Nos. 2 through 8 and Item B due to a Conflict of Interest, and requested that Mayor Pro -Tem Sanchez chair the Closed Session meeting. CLOSED SESSION (A) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1)): i. Gary Saenz and Georgeann Hanna v. City of San Bernardino, et al., San Bernardino Superior Court Case No. CIVDS2003802 ii. SB Pharma Holdings, Inc. dba The Row House v. City of San Bernardino, San Bernardino Superior Court Case No. CIVDS1914576 iii. Ashe Society SB, LLC v. City of San Bernardino, et al., San Bernardino Superior Court Case No. CIVDS1911952 iv. EEL Holdings, Inc., LLC v. City of San Bernardino, et al., San Bernardino Superior Court Case No. CIVDS1906467 v. Kostadinos Kahros, et al. v. City of San Bernardino, et al., San Bernardino Superior Court Case No. CIVDS1830325 vi. Washington, LLC, et al. v. City of San Bernardino, et al., San Bernardino Superior Court Case No. CIVDS1905710 vii. Washington, LLC, et al. v. City of San Bernardino, et al ., San Bernardino Superior Court Case No. CIVDS1922151 viii. KP Investment Group, LLC v. City of San Bernardino, et al., San Bernardino Superior Court Case No. CIVDS1909577 (B) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation (Pursuant to Government Code Section 54956.9(d)(2)): five cases - tort claims filed by Mirna Cisneros (dated February 12, 2020), Karen Cervantes (dated February 12, 2020), Don Smith (dated March 31, 2020), Jackie Aboud (dated April 27, 2020), and Andrea Miller (dated April 29, 2020). (C) PUBLIC EMPLOYEE APPOINTMENT - City Clerk (D) PUBLIC EMPLOYEE APPOINTMENT - City Manager - Council will discuss process for future appointment of City Manager (E) CONFERENCE WITH REAL PROPERTY NEGOTIATORS - Pursuant to Government Code Section 54956.8: Property Address: Four (4) parcels, approximately 0.56 acres, of vacant real property located at 562 and 578 N. Mt. Vernon Avenue and 17.a Packet Pg. 888 Attachment: Attachment 1 - 05-06-2020 Draft Regular Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes May 6, 2020 Mayor and City Council of the City of San Bernardino Page 3 Printed 5/28/2020 1316 W. Spruce Street, APNs 0138-114-09 to -11 and 0138-114-18 Agency Negotiator: Teri Ledoux, City Manager Negotiating Party: Edward C. Adams and Jeanne M. Adams Under Negotiation: Price and Terms of Purchase 7:00 P.M. The regular meeting of the Mayor and City Council was called to order at 7:13 p.m. INVOCATION AND PLEDGE OF ALLEGIANCE Mayor Valdivia led the Pledge of Allegiance to the Flag. CLOSED SESSION REPORT The Mayor and City Council convened into Closed Session at 5:30 p.m. City Attorney Sonia Carvalho stated there was no reportable action taken during Closed Session. The Mayor and City Council recessed from Closed Session at 7:08 p.m. PRESENTATIONS 1. Proclamation for National Public Works Week - May 17, 2020 through May 23, 2020 Mayor Valdivia read the Proclamation into the Record and thanked Public Works staff. PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA The Acting City Clerk stated that written comments had been added to the meeting record and there were requests from Council Member Nickel and Richard to read public comments sent to them into the record. Council Member Nickel read the written comment received into the record . The name of the person submitting the comment was not disclosed. The individual commented on a breach of the settlement agreement with former City Manager Andrea Miller. Council Member Richard read Mr. Hardy Brown’s written comment into the record. He commented on Nurse Appreciation W eek and thanked Commissioner Alexander for the pop-up event at St. Bernardine’s Medical Center to thank and show appreciation to the hospital staff. At this time the voice recorded public comments were played by the Acting City Clerk for the Mayor and City Councilmembers. 17.a Packet Pg. 889 Attachment: Attachment 1 - 05-06-2020 Draft Regular Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes May 6, 2020 Mayor and City Council of the City of San Bernardino Page 4 Printed 5/28/2020 Debbie Arreola, San Bernardino, thanked and recognized the First Responders. She expressed concern on how the public event at St. Bernardine’s Medical Center was organized. Damon Alexander, San Bernardino, addressed concerns related to the event at St. Bernardine’s Medical Center and spoke on several community issues. Jeanette McKeg, San Bernardino, expressed concern over the lawsuits the City has received and spoke on the decision to reduce the pay of the former City Attorney and City Clerk. Shirley Harlan, San Bernardino, spoke on Item No. 2, and requested that the Mayor and City Council approve them item and enter into an agreement with the County. James Elver, San Bernardino, spoke in favor of Item No. 2 and requested that the Mayor and City Council direct the City Manager to enter into an agreement with the County. Treasure Ortiz, San Bernardino, spoke on City litigation and the Mayor and City Council’s behavior and the impact on the community. Paul Sanborn, San Bernardino, congratulated Mayor Pro-Tem Sanchez on the work completed at Pioneer Cemetery and Seccombe Park. Leticia Garcia, San Bernardino, commented on the allegations against the Mayor Valdivia and Council Member Figueroa related to receiving bribes and requested that Mayor Pro-Tem Sanchez to place the item on a future agenda to discuss, and requested that the contract with the City Attorney be reviewed. Dorothy Garcia, San Bernardino, spoke in favor of Item No. 2 and requested that the Mayor and City Council approve an agreement with the County. STAFF REPORTS 2. Receive a Report on the County of San Bernardino's COVID-19 Homeless Emergency Hotel/Motel Response Planning and Provide Direction to Staff Accordingly Recommendation Receive a report on the County of San Bernardino's COVID -19 Homeless Emergency Hotel/Motel Response Planning and provide direction to City staff accordingly. City Manager Teri Ledoux provided a presentation to the Mayor and City Council with an update to the San Bernardino County’s Covid-19 Homeless Response Plan. Following the discussion the Mayor and City Council received and filed the report. RESULT: Received and Filed 17.a Packet Pg. 890 Attachment: Attachment 1 - 05-06-2020 Draft Regular Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes May 6, 2020 Mayor and City Council of the City of San Bernardino Page 5 Printed 5/28/2020 3. Consider Initiating an Annexation of the Remaining Unincorporated Island of Land Abutting the Spring Trails Specific Plan Project Area. Recommendation Adopt Resolution No. 2020-87 of the Mayor and City Council of the City of San Bernardino, California, declaring its intention to annex a 26 -acre area containing six parcels in the unincorporated County that is totally-surrounded by the City of San Bernardino, and direct the City Manager to submit the Resolution to the Executive Officer of LAFCO. Community and Economic Development Director Michael Huntley provided a presentation Council Member Nickel and Ibarra expressed their concerns regarding the project. Council Member Shorett stated he was in favor of the item. MOTION BY COUNCILMEMBER SHORETT, SECOND BY COUNCILMEMBER RICHARD, to approve Staff’s recommendation. Council Member Nickel continued to express his concerns and stated that at this time he was opposed of taking action on the item. Mayor Pro-Tem Sanchez discussed his concerns of considering initiating the annexation. Secondary motion introduced by Council Member Nickel: MOTION BY COUNCILMEMBER NICKEL, SECOND BY COUNCILMEMBER SANCHEZ, to table the matter until the developer could obtain the properties they require, CARRIED 4-3 (COUNCILMEMBERS: SHORETT, RICHARD, AND MULVIHILL OPPOSED) MAYOR VALDIVIDA VETOED THE MOTION. City Attorney Sonia Carvalho provided clarification on the recommendation presented by City staff and stated that if approved, the City was announcing their intention to move forward with an annexation process. It would allow the developer to obtain the certificate of completion that they would need to move forward with the project. MOTION BY COUNCILMEMBER SHORETT, SECOND BY COUNCILMEMBER MULVIHILL, to approve Staff’s recommendation, MOTION FAILED 3-4 (COUNCILMEMBERS: SANCHEZ, IBARRA, NICKEL, AND FIGUEROA OPPOSED) 17.a Packet Pg. 891 Attachment: Attachment 1 - 05-06-2020 Draft Regular Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes May 6, 2020 Mayor and City Council of the City of San Bernardino Page 6 Printed 5/28/2020 FINAL RESULT: TABLE AGENDA ITEM NO. 3, CARRIED 5-2 MOVER: Fred Shorett, Councilmember, Ward 4 SECONDER: James Mulvihill, Councilmember, Ward 7 AYES: Sanchez, Ibarra, Figueroa, Shorett, and Nickel, NOES: Richard, Mulvihill PULIC HEARINGS 4. Public Hearing on Annexation No. 2 to Community Fac ilities District 2019-1 (Maintenance Services) for Tax Zone No. 3, PM 19814, Adoption of Resolutions for Annexing into the Community Facilities District, and First Reading of an Ordinance Amending Ordinance Levying Special Taxes for Fiscal Year 2020-21 Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; 2. Adopt Resolution No. 2020-89 of the Mayor and City Council of the City of San Bernardino, California, calling an election to submit to the qualified electors the question of levying a special tax within the are proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 2); and 3. Hold a special landowner election and canvass the election; 4. Adopt Resolution No. 2020-90 of the Mayor and City Council of the City of San Bernardino, California, declaring election results for Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 2); 5. Introduce Ordinance No. MC-1536 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2020 -21 to pay the annual costs of the maintenance and servicing of landscaping, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and 6. Schedule the final reading and adoption of Ordinance No MC -1536 for May 20, 2020. The public hearing was opened at 8:34 p.m. Mayor Valdivia asked the City Council whether there were any disclosures regarding this matter and there were none; inquired whether the City Clerk had proof of publication; and the City Clerk responded that she did have proof of publication. 17.a Packet Pg. 892 Attachment: Attachment 1 - 05-06-2020 Draft Regular Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes May 6, 2020 Mayor and City Council of the City of San Bernardino Page 7 Printed 5/28/2020 Public Works Director Kris Jensen informed Mayor and City Council that Deputy Director of Public Works Alex Qishta would provide the presentation and Shane Spicer of Spicer Consulting would be available to answer any questions. Deputy Director of Public Works Alex Qishta and Shane Spicer provided a presentation to the Mayor and City Council. Council Member Ibarra inquired and Mr. Spicer informed that the public hearing notice had been published in the newspaper. Public Works Director Kris Jensen informed that ballots were sent to the property owners where the properties were being annexed with the opportunity to oppose the annexation. RESULT: ADOPTED RESOLUTION NO. 2020-89, CARRIED (5-1-1) MOVER: James Mulvihill, Councilmember, Ward 7 SECONDER: Theodore Sanchez, Councilmember, Ward 1 AYES: Sanchez, Shorett, and Nickel, Richard, Mulvihill ABSTAINED: Ibarra NOES: Figueroa RESULT: ADOPTED RESOLUTION NO. 2020-90, CARRIED (6-1-0) MOVER: James Mulvihill, Councilmember, Ward 7 SECONDER: Theodore Sanchez, Councilmember, Ward 1 AYES: Sanchez, Figueroa, Shorett, and Nickel, Richard, Mulvihill ABSTAINED: Ibarra NOES: None RESULT: INTRODUCED FOR FIRST READING ORDINANCE NO. MC-1536, CARRIED 7-0 - Passed Unanimously MOVER: Fred Shorett, Councilmember, Ward 4 SECONDER: Theodore Sanchez, Councilmember, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, and Nickel, Richard, Mulvihill NOES: None 17.a Packet Pg. 893 Attachment: Attachment 1 - 05-06-2020 Draft Regular Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes May 6, 2020 Mayor and City Council of the City of San Bernardino Page 8 Printed 5/28/2020 Council Member Shorett stated he wanted to revisit Item No. 3 Mayor Valdivia recognized Council Member Shorett’s request. Council Member Shorett motioned to table the item MOTION BY COUNCIL MEMBER SHORETT, SECONDED BY COUNCIL MEMBER NICKEL, to table Item No. 3, and was passed with a 5-2 vote (Council Members Richard and Mulvihill opposed). 5. Public Hearing Regarding Fee Adjustments for Various City Departments Recommendation That the Mayor and City Council of the City of San Bernardino, California, conduct a Public Hearing regarding fee adjustments for various City Departments. Deputy City Manager Rita Conrad provided a presentation to the Mayor and City Council. The Mayor and City Council thanked staff for the report, discussed cost recovery options, requested that the fees be revisited, and expressed support for the item. RESULT: APPROVED CONDUCTING A PUBLIC HEARING REGARDING FEE ADJUSTMENTS FOR VARIOUS CITY DEPARTMENTS, CARRIED 7-0 MOVER: Fred Shorett, Councilmember, Ward 4 SECONDER: James Mulvihill, Councilmember, Ward 7 AYES: Sanchez, Ibarra, Figueroa, Shorett, Nickel, Richard, Mulvihill NOES: None CONSENT CALENDAR Items on the Consent Calendar are considered routine and are voted on in a single motion, unless a council or staff member has pulled the item for more discussion. City Manager Teri Ledoux requested to Pull Item No. 8 from Consent to provide an oral report. 8. Independent Investigation Status Update Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file a status update requested by the City Council on the independent investigation into the allegations of harassment made by current and former City employees against Mayor John Valdivia and the City of San Bernardino. Mayor Valdivia asked if there were any questions from the City Council on this matter after City Manager Teri Ledoux provided an update. There were no questions from the City Council. 17.a Packet Pg. 894 Attachment: Attachment 1 - 05-06-2020 Draft Regular Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes May 6, 2020 Mayor and City Council of the City of San Bernardino Page 9 Printed 5/28/2020 Mayor Valdivia polled the City Council for any items they wanted to discuss from the Consent Calendar. Councilmembers Ibarra and Figueroa requested to pull Item No. 11 Councilmember Nickel requested to pull Item No. 20 RESULT: APPROVE THE CONSENT CALENDAR WITH ITEM NOS. 8, 11, AND 20 PULLED FOR DISCUSSION, CARRIED 7-0 MOVER: James Mulvihill, Councilmember, Ward 7 SECONDER: Henry Nickel, Councilmember, Ward 5 AYES: Sanchez, Ibarra, Figueroa, Shorett, Nickel, Richard, Mulvihill NOES: None 6. Approval of Commercial Checks and Payroll Disbursements Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the commercial and payroll disbursements for April 2020. 7. Monthly Investment Portfolio Reports Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California accept and file the Monthly Investment Portfolio Reports for both February and March 2020. 8. Independent Investigation Status Update Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file a status update requested by the City Council on the independent investigation into the allegations of harassment made by current and former City employees against Mayor John Valdivia and the City of San Bernardino. Council Member Nickel inquired and City Manager Teri Ledoux informed that it was unknown when the investigation would be completed. City Attorney Sonia Carvalho explained that the Mayor and City Council had been provided with an update during Closed Session from special legal counsel, that information was confidential, and that the City Council could seek an update from the special legal counsel; she informed that Best Best and Krieger was not handling the case; therefore she could not answer any questions. Mayor Pro-Tem Sanchez commented that as a City Council, they could suspend the attorney client privilege and respond to the questions from the public. 17.a Packet Pg. 895 Attachment: Attachment 1 - 05-06-2020 Draft Regular Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes May 6, 2020 Mayor and City Council of the City of San Bernardino Page 10 Printed 5/28/2020 Council Member Shorett warned against taking that action and discussed the impact it would have to the City of San Bernardino. RESULT: Received and Filed 9. A Resolution Awarding a Professional Services Agreement for Auditing Services Beginning Fiscal Year 2019/20 Recommendation Adopt Resolution 2020-88 of the Mayor and City Council of the City of San Bernardino, California, awarding a Professional Services Agreement to Rogers, Anderson, Malody & Scott (RAMS) of San Bernardino, California, as the City’s external auditors, in an amount not-to exceed $283,500 for a three-year term with a two-year option to extend. 10. Final Reading and Adoption of MC-1535 Penalties for Fireworks Violations Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, conduct a final reading of and adopt Ordinance MC-1535, amending Chapters 8.60 and 8.61 of Title 8 and Chapter 9.93 of Title 9 of the San Bernardino Municipal Code, pertaining to the use of fireworks within city limits. 11. Resolution Authorizing the Issuance of a Purchase Order for Unmarked Police Vehicles Recommendation Adopt Resolution 2020-74 of the Mayor and City Council of the City of San Bernardino, California, authorizing the Director of Finance to amend the FY 2019/20 adopted budget and issue a Purchase Order to CarMax in an amount not to exceed $90,000. Council Members Ibarra and Figueroa pulled Item No. 11 for questions and discussion. Council Member Figueroa stated he understood the request; however, he could not support the item due to the vehicles not being purchased in the City of San Bernardino. Acting Police Chief McBride provided an explanation why the vehicles were being purchased through CarMax Both Council Members Ibarra and Shorett were in support of buying the vehicles locally. RESULT: ADOPT RESOLUTION NO. 2020-74, CARRIED 5-2 MOVER: Theodore Sanchez, Councilmember, Ward 1 SECONDER: Fred Shorett, Councilmember, Ward 4 AYES: Sanchez, Shorett, Nickel, Richard, Mulvihill NOES: Ibarra, Figueroa, 17.a Packet Pg. 896 Attachment: Attachment 1 - 05-06-2020 Draft Regular Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes May 6, 2020 Mayor and City Council of the City of San Bernardino Page 11 Printed 5/28/2020 12. Resolution to Ratify the Submission of a Grant Application for Year Two of the Corporation for National and Community Service's Retired and Senior Volunteer Program - FY 2020/21 Recommendation Adopt Resolution 2020-75 of the Mayor and City Council of the City of San Bernardino, California, ratifying the submission of a grant application for year two of the Corporation for National and Community Service’s Retired and Senior Volunteer Program, accepting the grant award in the amount of $54,809 and appropriating the grant funds for the period from April 1, 2020 through March 31, 2021. 13. 2ND Reading of Ordinance of MC-1532 Approving Specific Plan Amendment 19-01 – I. E. Hub Center Project Recommendation It is recommended that the Mayor and City Council of the City of San Bernar dino, California, accept for final reading and adopt Ordinance No. MC-1532 approving Specific Plan Amendment 19-01 changing the Waterman + Baseline Neighborhood Transformation Specific Plan Land Use Zone from Neighborhood Residential to Employment of three (3) parcels (APN: 0278-051-08, 17 and 24) containing a total of approximately 15.39 acres located at 1066 N. Tippecanoe Avenue. 14. Subordination of a Deed of Trust in Connection with a Refinancing of the Senior Mortgage Relating to Real Property at 6803 N. Shannon Lane, San Bernardino, California Recommendation Adopt a Resolution No. 2020-76 of the Mayor and City Council of the City of San Bernardino, California, acting as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernard ino, approving a Subordination of a Deed of Trust in connection with a refinancing of the Senior Mortgage relating to real property located at 6803 N. Shannon Lane, San Bernardino, California. 15. Resolution Approving a Subordination of a Deed of Trust in Connection with a Refinancing of Senior Mortgage Relating to 756 West 8TH Street, San Bernardino, California Recommendation Adopt a Resolution No. 2020-77 of the Mayor and City Council of the City of San Bernardino, California, acting as the Successor Hous ing Agency to the Redevelopment Agency of the City of San Bernardino, to approve a Subordination of a Deed of Trust in connection with a refinancing of the Senior Mortgage relating to real property located at 756 West 8th Street, San Bernardino, California. 16. Annual Update to Assessment Engineer's Reports - Previously Formed Landscape and Lighting Maintenance Districts Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-72, initiating proceedings to levy and collect assessments for Fiscal Year 2020/21 in Assessment Districts pursuant to the Constitution and the Landscaping and Lighting Act of 1972, appointing the Engineer of Record, and ordering the preparation of Engineer’s Reports. 17.a Packet Pg. 897 Attachment: Attachment 1 - 05-06-2020 Draft Regular Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes May 6, 2020 Mayor and City Council of the City of San Bernardino Page 12 Printed 5/28/2020 17. Resolution Approving Amendment No. 2 to Cooperative Agreement 16 - 1001477 with SBCTA Related to the Mt. Vernon Avenue Viaduct Replacement Project Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino , California adopt Resolution 2020-78 to approve Amendment No. 2 to Cooperative Agreement No. 16-1001477 with the San Bernardino County Transportation Authority (SBCTA) for roles and responsibilities for the Mt. Vernon Viaduct Project (“Project) to increase San Bernardino County Transportation Authority (SBCTA) and City Developer Impact Fees (DIF) by a total of $10,127,219, for a new SBCTA share of $16,165,535 and DIF share funding of $9,747,979, to cover project funding shortfalls based on the final bid price for the Design Build contract and updated funding contributions from Federal and State sources; and to authorize the City Manager to sign and execute Amendment No. 2 to the Agreement. 18. Cooperative Agreement with the City of Rialto for Pepper Avenue Rehabilitation from Baseline Road to Mill Street Project (SS20-010) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-80, approving the Cooperative Agreement with the City of Rialto FOR Pepper Avenue Rehabilitation from Baseline Road to Mill Street Project (SS20-010) (“Project”). 19. Resolution Approving Cooperative Agreement No. 20-1002318 with the San Bernardino County Transportation Commission (Authority) for Phase II of the San Bernardino Metrolink Station Accessibility Improvement Project Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution 2020-81, approving Cooperative Agreement No. 20- 1002318 with the San Bernardino County Transportation Authority for Phase II of the San Bernardino Metrolink Station Accessibility Improvement Project. 20. Award of a Construction Contract for Al Guhin Park Playground Equipment Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-82: 1. Approving a total project budget for Al Guhin Park Playground Equipment Project (“Project”) in the amount of $241,000, to include construction contract in the amount of $209,500, project contingencies in the amount of $21,500 , and engineering and inspection budgets in the amount of $10,000; and 17.a Packet Pg. 898 Attachment: Attachment 1 - 05-06-2020 Draft Regular Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes May 6, 2020 Mayor and City Council of the City of San Bernardino Page 13 Printed 5/28/2020 2. Approving the award of a construction contract with Pacific Play Systems, Inc. of Carlsbad, California, in the amount of $209,500 to perform the construction of the Project; and 3. Authorizing the Director of Finance to amend the FY 2019/20 adopted budget to allocate $108,203.60 in Quimby Act Parkland Funds (Fund 269) to the Project; and 3. Authorizing the City Manager to execute all documents, and expend contingency amounts, if necessary, in support of the Project. Council Member Nickel pulled the item for discussion; he had questions on the funding and future uses for the site and Public Works Director Kris Jensen responded. Mayor Valdivia requested a report on the Quimby Parkland F unding and where the money was spent the last five fiscal years. RESULT: ADOPTED RESOLUTION NO. 2020-82 AND STAFF’S RECOMMENDATIONS, CARRIED 7-0 MOVER: Henry Nickel, Councilmember, Ward 5 SECONDER: James Mulvihill, Councilmember, Ward 7 AYES: Sanchez, Ibarra, Figueroa, Shorett, Nickel, Richard, Mulvihill NOES: None 21. Award of Construction Contract for Sidewalk Gap Closure - Safe Routes to School Project Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-83: 1. Approving Sidewalk Gap Closure - Safe Routes to School Project (SS17-001) Project (“Project”) infrastructure component expenditures in a total amount of $1,671,000, which includes a construction contract in the amount of $1,469,645, project contingencies in the amount of $147,355, and engineering and inspection budgets in the amount of $54,000; and 2. Approving the award of a Construction Contract with Hillcrest Contracting Inc. of Corona, California, in the amount of $1,469,645 to perform construction of the project; and 3. Authorizing the City Manager, or designee, to expend the contingency fund, if necessary, to complete the project; and 4. Authorizing the Director of Finance to record any necessary budget adjustments to support the project. 17.a Packet Pg. 899 Attachment: Attachment 1 - 05-06-2020 Draft Regular Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes May 6, 2020 Mayor and City Council of the City of San Bernardino Page 14 Printed 5/28/2020 22. Resolution Approving a Construction Contract for Storm Drain Upgrades Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution 2020-84: 1. Approving total project budgets in the amount of $1,060,000 for Storm Drain Repairs at Various Locations (CIP Project SD04 -24 and CIP Project SD19-003) to include a construction contract in the amount $849,730, project contingencies in the amount of $170,270 and engineering and inspection budgets in the amount of $40,000 (collectively; and 2. Approving the award of a Construction Contract with TRYCO General Engineering of Rimforest, California in the amount of $849,730; and 3. Authorizing the Director of Finance to amend the FY 2019/20 adopted budget to allocate $574,380 in Storm Drain Fund No. 248 to the Project; and 4. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project 23. Authorization to Proceed with Street Vacation of Portions of 4TH Street Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize staff to proceed with an investigation and analysis for the proposed street vacation of portions of 4th Street. 24. Amendment No. 1 to License Agreement 17-1001639 with San Bernardino Transportation Authority (SBCTA) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-85, approving Amendment No. 1 to License Agreement 17-1001639 with the San Bernardino County Transportation Authority (SBCTA). 25. Resolution Ratifying the Submittal of Amendment No. 1 Budget of the Senior Nutrition Program Grant to the County of San Bernardino Department of Aging and Adult Services Recommendation Adopt Resolution No. 2020-86 of the Mayor and City Council of San Bernardino, California, ratifying the submittal of Amendment No. 1 budget of the Senior Nutrition Program Grant to the County of San Bernardino Department of Aging and Adult Services (DAAS) pursuant to County Contract No. 19 -372; accept the additional funding OTO (One-Time Only), amend the award in the amount of $47,213 for a total budget of $387,213; appropriate grant revenue expenditures, and issue change orders to purchase orders to Sysco Foods, American Meat Companies , dba Merit Day and Hollandia Dairy, Inc. for the period July 1, 2019 th rough June 30, 2020. 17.a Packet Pg. 900 Attachment: Attachment 1 - 05-06-2020 Draft Regular Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes May 6, 2020 Mayor and City Council of the City of San Bernardino Page 15 Printed 5/28/2020 ITEMS TO BE REFERRED TO COMMITTEE Mayor Pro-Tem Sanchez and Council Member Ibarra requested that staff come back with recommendations for fines in the Municipal Code on violations that were rampant in the City that could be considered for an update. Council Member Ibarra requested a status update on campaign finance laws and City Manager Teri Ledoux stated that staff is intending to bring that before the Mayor and City Council. REPORTS ON CONFERENCES/MEETINGS ATTENDED There were no reports on conferences/meetings attended from the Mayor or City Council. ADJOURNMENT The meeting of the Mayor and City Council was adjourned at 10:23 p.m. on Wednesday, May 6, 2020. The next joint regular meeting of the Mayor and City Council and th e Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency will be held on Wednesday, May 20, 2020 in the Council Chamber located at 555 West 6th Street, San Bernardino, California 92401. Closed Session will begin at 5:30 p.m. and Open Session will begin at 7:00 p.m. BY: Genoveva Rocha, CMC City Clerk 17.a Packet Pg. 901 Attachment: Attachment 1 - 05-06-2020 Draft Regular Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All City of San Bernardino 201 North E Street San Bernardino, CA 92401 http://www.sbcity.org DRAFT MINUTES FOR THE SPECIAL MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOIN POWERS FINANCING AUTHORITY THURSDAY, FEBRUARY 11, 2021 5:30 PM CALL TO ORDER The Closed Session Meeting of the Mayor and City Council of the City of San Bernardino was called to order at 5:32 PM by Mayor John Valdivia on Thursday, February 11, 2021, via Web-Conference. Attendee Name Present Absent Late Arrived Council Member, Ward 1 Theodore Sanchez Mayor Pro-Tem, Ward 2 Sandra Ibarra Council Member, Ward 3 Juan Figueroa Council Member, Ward 4 Fred Shorett Council Member, Ward 5 Ben Reynoso Council Member, Ward 6 Kimberly Calvin Council Member, Ward 7 Damon L. Alexander Mayor John Valdivia City Manager Robert D. Field City Attorney Sonia Carvalho City Clerk Genoveva Rocha Mayor John Valdivia Council Members Theodore Sanchez Sandra Ibarra Juan Figueroa Fred Shorett Ben Reynoso Kimberly Calvin Damon L. Alexander 17.b Packet Pg. 902 Attachment: Attachment 2 - 02-11-2021 Draft Special Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Special Meeting Minutes February 11, 2021 Mayor and City Council of the City of San Bernardino Page 2 Printed 2/13/2021 CLOSED SESSION PUBLIC COMMENTS There were no public comments received for Closed Session. CLOSED SESSION (A) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation (Pursuant to Government Code Section 54956.9(d)(4)): One case CLOSED SESSION REPORT City Attorney Carvalho reported that there is no reportable action taken on Item A. 6:00 P.M. Mayor Valdivia called the Special meeting to order at 6:00 p.m. INVOCATION AND PLEDGE OF ALLEGIANCE Mayor Valdivia asked Council Member Alexander to lead the Pledge of Allegiance. PUBLIC COMMENTS FOR ITEMS LISTED ON THE AGENDA Robert Porter, San Bernardino, expressed that he would like to see new developments incorporate art and history into their projects throughout the City. Gigi Palacero, San Bernardino, spoke against low income housing in the downtown area and commented on the vision to build an arena to bring in revenue. Treasure Ortiz, San Bernardino, spoke in favor of the Emergency Rental Assistance Program and the introduction of the General Plan and asked City Council to engage members of the public. Emilia Lopez, San Bernardino, spoke on goals of the General Plan, engaging members of the public, and neighborhood revitalization. STAFF REPORT 1. Emergency Rental Assistance Program Funding Options (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Direct staff to participate in the State of California administered Emergency Rental Assistance Program option A; or 2. Direct staff to administer a local Emergency Rental Assistance Program with the $6.4 million allocation the City of San Bernardino received from the United States Treasury. City Manager Field provided an overview of the staff report and recommendation. 17.b Packet Pg. 903 Attachment: Attachment 2 - 02-11-2021 Draft Special Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Special Meeting Minutes February 11, 2021 Mayor and City Council of the City of San Bernardino Page 3 Printed 2/13/2021 Community and Economic Development Director Huntley and Housing Division Manager Noble provided a presentation of the funding options for the Emergency Rental Assistance Program. Mayor Valdivia asked about staffing personnel to administer the program. Housing Division Manager Noble and City Manager Field advised the City does have the capacity to administer program of this magnitude, however the C ity plans to contract with an outside, non-profit service provider to administer the program. Mayor Pro Tem Ibarra asked questions about the allocation of funds to the Housing Authority. City Manager Field advised that the Housing Authority does not have staff capacity. Council Member Alexander asked questions about the nonprofits that the City is planning on working with. City Manager Field advised that staff is exploring options with different nonprofits and informed the Mayor and City Council that staff is recommending option C of the staff report and that there is a time frame for expending funds. Mayor Valdivia asked how much of the money has been distributed to residents. Housing Division Manager Gretel advised that the City does not know the amount, however they have information as to how many have applicants. Ms. Gretel stated that the response has not been overwhelming and that applicants have to owe rent that is COVID-19 related. Council Member Reynoso expressed how important this program is. MOTION BY COUNCIL MEMBER REYNOSO, SECONDED BY COUNCIL MEMBER SANCHEZ, to approve staff recommendation of option C; direct staff to prepare a Request for Proposal (RFP) to work with a local nonprofit or a collection of local nonprofits to assist the City with allocation of funds under option C; direct staff to bring back an item to the Mayor and City Council to form a committee composed of three (3) council members and two (2) staff members to oversee the RFP process, the allocation of funds, and the compliance of rules and regulations of the funding; direct staff to bring back a resolution reflecting the requirement that the established committee bring a report to the Mayor and City Council a minimum of every third Council meeting until all funds are disbursed or the grants expire, whichever comes first; and that Council Member Reynoso serve as the Chair of the committee, Mayor Pro Tem Ibarra serve as a Standing Member, Council Member Calvin as a Standing Member, and the two (2) staff members will be assigned by the City Manager. Council Member Shorett asked for clarification on option C. 17.b Packet Pg. 904 Attachment: Attachment 2 - 02-11-2021 Draft Special Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Special Meeting Minutes February 11, 2021 Mayor and City Council of the City of San Bernardino Page 4 Printed 2/13/2021 Council Member Calvin advised she is aware of several organizations that would be willing to assist the City with disbursing the funds. Council Member Calvin expressed that the City needs to utilize various means in getting the information out to the public. RESULT: APPROVED STAFF RECOMMENDATION OF OPTION C; DIRECTED STAFF TO PREPARE A REQUEST FOR PROPOSAL (RFP) TO WORK WITH A LOCAL NONPROFIT OR A COLLECTION OF LOCAL NONPROFITS TO ASSIST THE CITY WITH ALLOCATION OF FUNDS UNDER OPTION C; DIRECTED STAFF TO BRING BACK AN ITEM TO THE MAYOR AND CITY COUNCIL TO FORM A COMMITTEE COMPOSED OF THREE (3) COUNCIL MEMBERS AND TWO (2) STAFF MEMBERS TO OVERSEE THE RFP PROCESS, THE ALLOCATION OF FUNDS, AND THE COMPLIANCE OF RULES AND REGULATIONS OF THE FUNDING; DIRECTED STAFF TO BRING BACK A RESOLUTION REFLECTING THE REQUIREMENT THAT THE ESTABLISHED COMMITTEE BRING A REPORT TO THE MAYOR AND CITY COUNCIL A MINIMUM OF EVERY THIRD COUNCIL MEETING UNTIL ALL FUNDS ARE DISBURSED OR THE GRANTS EXPIRE, WHICHEVER COMES FIRST; AND THAT COUNCIL MEMBER REYNOSO SERVE AS THE CHAIR OF THE COMMITTEE, MAYOR PRO TEM IBARRA SERVE AS A STANDING MEMBER, COUNCIL MEMBER CALVIN AS A STANDING MEMBER, AND THE TWO (2) STAFF MEMBERS WILL BE ASSIGNED BY THE CITY MANAGER, CARRIED 7-0 – Passed Unanimously MOVER: Ben Reynoso, Ward 5 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None PRESENTATION 2. General Plan Introductory Workshop Recommendation Receive and File the presentation on the General Plan Introductory Workshop. City Manager Field and Community and Economic Development Director Huntley provided a brief overview of the staff report and introduced Placeworks. March 17, general plan website Woodie Tescher, Placeworks Principal In-Charge and Project Manager, Wendy Nowak, Placeworks Public Outreach Lead, and Karen Gulley, Placewor ks Specific Plan Lead, provided a presentation on the general plan, downtown specific plan, and development code. Mayor Valdivia expressed his appreciation of the public engagement and stated that he would like to make sure that San Bernardino International Airport, San Bernardino 17.b Packet Pg. 905 Attachment: Attachment 2 - 02-11-2021 Draft Special Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Special Meeting Minutes February 11, 2021 Mayor and City Council of the City of San Bernardino Page 5 Printed 2/13/2021 Chamber of Commerce, San Manuel Casino, Cal State San Bernardino, and the San Bernardino County Transit Authority are included in the existing relationships. Mayor Valdivia also expressed appreciation for the various outreach opportunities provided by Placeworks during this process. Council Member Reynoso commented on the number of meetings that will be held with community members and the budget for advertising on social media. Mayor Pro Tem Ibarra commented on holding bilingual meetings for the community, the vision for community input, and the timeframe as to when workshops will occur. Council Member Calvin commented on utilizing Council Members to assist them with outreach to constituents in the wards. Council Member Alexander commented on the development code, land uses, revitalization, design standards, and administrative procedures for housing developments. ADJOURNMENT The meeting of the Mayor and City Council was adjourned at 7:44 p.m. The next joint regular meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency will be held on Wednesday, February 17, 2021 via tele-conference. Closed Session will begin at 5:30 p.m. and Open Session will begin at 7:00 p.m. BY: Genoveva Rocha, CMC City Clerk 17.b Packet Pg. 906 Attachment: Attachment 2 - 02-11-2021 Draft Special Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All City of San Bernardino 201 North E Street San Bernardino, CA 92401 http://www.sbcity.org DRAFT MINUTES FOR THE SPECIAL MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOIN POWERS FINANCING AUTHORITY WEDNESDAY, FEBRUARY 24, 2021 5:30 PM CALL TO ORDER The Special Meeting of the Mayor and City Council of the City of San Bernardino was called to order at 5:31 p.m. by Mayor John Valdivia on Wednesday, February 24, 2021, via Web-Conference. Attendee Name Title Status Arrived Theodore Sanchez Mayor Pro-Tem, Ward 1 Present Sandra Ibarra Council Member, Ward 2 Present Juan Figueroa Council Member, Ward 3 Present Fred Shorett Council Member, Ward 4 Present Ben Reynoso Council Member, Ward 5 Present Kimberly Calvin Council Member, Ward 6 Present Damon L. Alexander Council Member, Ward 7 Present John Valdivia Mayor Present Genoveva Rocha City Clerk Present Sonia Carvalho City Attorney Present Robert D. Field City Manager Present Mayor John Valdivia Council Members Theodore Sanchez Sandra Ibarra Juan Figueroa Fred Shorett Ben Reynoso Kimberly Calvin Damon L. Alexander 17.c Packet Pg. 907 Attachment: Attachment 3 - 02-24-2021 Draft Special Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Special Meeting Minutes February 11, 2021 Mayor and City Council of the City of San Bernardino Page 2 Printed 2/25/2021 INVOCATION AND PLEDGE OF ALLEGIANCE Mayor Valdivia asked Council Member Alexander to lead the Pledge of Allegiance to the Flag. PUBLIC COMMENTS FOR ITEMS LISTED ON THE AGENDA At this time, the voice recorded public comments were played by the City Clerk for the Mayor and City Council Members. Kenney Duncan, San Bernardino, expressed concerns over stagnant redevelopment and the lack of improvement in San Bernardino. Jeanette McCaig, San Bernardino, spoke in support of Campaign Finance Reform. Robert Porter, San Bernardino, expressed concerns over potential conflicts of interest and spoke the proposals received for the Carousel Mall Property. Lynne Ware, San Bernardino, commented on inappropriate influences from special interest groups and spoke in support of Campaign Finance Reform. Harry Hatch, San Bernardino, spoke in favor of the adoption of a resolution of censure for the Mayor. Hardy Brown, San Bernardino, commented on the necessity for conflict of interest matters to be discussed and investigated and spoke on the need for a Community Benefits Agreement for the Carousel Mall Property. Alicia Amoyo, San Bernardino, spoke in favor of reopening the biding process for the Carousel Mall Property. Luis, San Bernardino, spoke in favor of reopening the biding process for the Carousel Mall Property. Treasure Ortiz, San Bernardino, thanked City Council for holding the Special Meeting and spoke on reporting gifts and conflict of interest matters. Athena Tan, San Bernardino, spoke on the long lasting effects of the redevelopment of the Carousel Mall Property and the importance of addressing conflicts of interest. Leticia Garcia, San Bernardino, spoke on conflict of interest matters and gifts from developers. Christian Flores, San Bernardino, spoke on the importance of community input and the need for a Community Benefits Agreement for the Carousel Mall Property. Roxanna Barrera, San Bernardino, spoke in favor of reopening the biding process for the Carousel Mall Property and investigating any conflicts of interest. 17.c Packet Pg. 908 Attachment: Attachment 3 - 02-24-2021 Draft Special Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Special Meeting Minutes February 11, 2021 Mayor and City Council of the City of San Bernardino Page 3 Printed 2/25/2021 DISCUSSION 1. Discussion Regarding Potential Conflicts of Interest and Bia s Impacts Regarding RFP Process for Redevelopment of the Carousel Mall Property; Consideration of Censure Process Related to Conflicts and Violations of the City Charter, City Municipal Code, City Code of Conduct or State Laws; and Determination of Whether Real or Perceived Improprieties Warrant a Rejection of Current Bidding Process Involving the Carousel Mall. Recommendation: City Council to engage in discussion, give staff direction or take actions by majority vote. Discussion ensued on potential conflicts of interest, campaign finance reform, and the bidding process involving the Carousel Mall Property. Council Member Shorett expressed that discussion should be held in Closed Session. MOTION BY COUNCIL MEMBER SHORETT, SECONDED BY COUNCIL MEMBER SANCHEZ, to adjourn to Closed Session. City attorney Carvalho advised the Mayor and City Council that the posted agenda for the meeting has been noticed as a Special, Open Session Meeting, therefore City Council is not able to adjourn into a Closed Session Meeting. Council Member Sanchez spoke on Campaign Finance Reform. MOTION BY COUNCIL MEMBER SHORETT, SECONDED BY COUNCIL MEMBER SANCHEZ, to adjourn meeting. SUBSTITUTE MOTION BY COUNCIL MEMBER CALVIN, SECONDED BY COUNCIL MEMBER REYNOSO, to continue the discussion. RESULT: APPROVED THE SUBSTITUTE MOTION TO CONTINUE THE DISCUSSION, CARRIED (6-1) MOVER: Kimberly Calvin, Ward 6 SECONDER: Ben Reynoso, Ward 5 AYES: Sanchez, Ibarra, Figueroa, Reynoso, Calvin, Alexander NOES: Shorett Council Member Reynoso spoke on Campaign Finance Reform and spoke on providing personal information. Council Member Calvin spoke on providing personal information and stated that the meeting was called to address issues of concern pertaining to conflicts of interest. Council Member Alexander commented on the policies and procedures in place and spoke in support of Campaign Finance Reform. 17.c Packet Pg. 909 Attachment: Attachment 3 - 02-24-2021 Draft Special Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Special Meeting Minutes February 11, 2021 Mayor and City Council of the City of San Bernardino Page 4 Printed 2/25/2021 MOTION BY COUNCIL MEMBER REYNOSO, SECONDED BY COUNCIL MEMBER SHORETT, to reopen the bidding process for the redevelopment of the Carousel Mall Property. City Attorney Carvalho advised that City Council can take a cote to give the City Manager direction and that a formal agenda item would need to be brought back to the Mayor and City Council at a regular meeting. Council Member Shorett expressed concerns about going through a new bidding process and spoke on a staff report that will be brought back to City Council at the March 3, 2021 meeting with information on the bidding process for the Carousel Mall property. City Manager Field confirmed that staff will be bringing a report to the Mayor and City Council at the March 3, 2021 meeting regarding the selection process and the direction staff is recommending regarding the redevelopment of the Carousel Ma ll Property. SUBSTITUTE MOTION BY COUNCIL MEMBER SHORETT, SECONDED BY COUNCIL MEMBER SANCHEZ, to wait until the March 3, 2021 City Council meeting to receive the staff report and recommendations regarding the redevelopment of the Carousel Mall Property. RESULT: APPROVED THE MOTION TO WAIT UNTIL THE MARCH 3, 2021 CITY COUNCIL MEETING TO RECEIVE THE STAFF REPORT AND RECOMMENDATIONS REGARDING THE REDEVELOPMENT OF THE CAROUSEL MALL PROPERTY, CARRIED (5-2) MOVER: Kimberly Calvin, Ward 6 SECONDER: Ben Reynoso, Ward 5 AYES: Sanchez, Ibarra, Shorett, Calvin, Alexander NOES: Figueroa, Reynoso MOTION BY COUNCIL MEMBER CALVIN, SECONDED BY MAYOR PRO TEM IBARRA, to adjourn the meeting. Mayor Valdivia left the meeting at 7:00 p.m. RESULT: ADJOURNED THE SPECIAL MEETING, CARRIED 7-0 – Passed Unanimously MOVER: Kimberly Calvin, Ward 6 SECONDER: Sandra Ibarra, Ward 2 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None ADJOURNMENT The meeting of the Mayor and City Council was adjourned at 7:01 p.m. 17.c Packet Pg. 910 Attachment: Attachment 3 - 02-24-2021 Draft Special Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Special Meeting Minutes February 11, 2021 Mayor and City Council of the City of San Bernardino Page 5 Printed 2/25/2021 The next joint regular meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency will be held on Wednesday, March 3, 2021 via tele-conference. Closed Session will begin at 5:30 p.m. and Open Session will begin at 7:00 p.m. BY: Genoveva Rocha, CMC City Clerk 17.c Packet Pg. 911 Attachment: Attachment 3 - 02-24-2021 Draft Special Meeting Minutes (7156 : Approval of the Mayor and City Council Meeting Minutes (All Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager Subject: Executive Order Extending Deadlines for Entitlements (All Wards) Recommendation Adopt Resolution No. 2021-49 of the Mayor and City Council of the City of San Bernardino, California, ratifying Executive Order 2021-01 of the Director of Emergency Services for the City of San Bernardino, California, enacting and implementing time extensions for land use entitlements, building plan check approvals, building permits, and other miscellaneous deadlines due to the impacts of the novel coronavirus (COVID - 19) and other protective measures during a period of local emergen cy. Background On March 4, 2020, the Governor of the State of California declared a state of emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the state prepare for the broader spread of COVID-19. On March 13, 2020, the President of the United States of America declared a national emergency and announced that the federal government would make emergency funding available to assist state and local governmen ts in preventing the spread of and addressing the effects of COVID-19. On March 13, 2020, the City Manager, in accordance with Section 2.46.090.A.1 of the San Bernardino Municipal Code, issued Proclamation No. 2020-01 proclaiming the existence of a local emergency relating to the worldwide spread of respiratory illness due to the novel coronavirus known as COVID-19. On March 18, 2020, the Mayor and City Council adopted Resolution No. 2020 -51, ratifying the proclamation and declaring the existence of a loc al emergency. Discussion As a result of the public health emergency and the precautions recommended by health authorities, City Hall and the public counters for development processing and permit applications in San Bernardino have been opened to the public on a limited basis, thereby hindering the processing of development applications, miscellaneous deadlines, development projects that were already approved, and thereby impacting development 18 Packet Pg. 912 7134 Page 2 in the city. Assembly Bill (“AB”) 1561 added section 65914.5 to the Government Code that enacted an eighteen (18) month extension for the otherwise applicable time for the expiration, effectuation, or utilization of a housing entitlement so long as it was issued prior to and was in effect on March 4, 2020, and that it will expire prior to December 31, 2021. In the interest of public health and safety, as affected by the emergency caused by the spread of COVID-19, it is necessary to exercise authority to adopt this Order related to the protection of land use approvals to extend certain deadlines or approvals during the COVID-19 pandemic outbreak, affecting residents and business applicants who have been in the plan check or development application process. 2020-2025 Key Strategic Targets and Goals Adoption of this Order aligns with Key Target No. 3: Improved Quality of Life by constantly evaluating public safety service delivery models to enhance the quality of service. Fiscal Impact None by this action. Conclusion It is recommended that the Mayor an d City Council of the City of San Bernardino, California, adopt Resolution No. 2021-49, ratifying Executive Order 2021-01 of the Director of Emergency Services for the City of San Bernardino, California, enacting and implementing time extensions for land use entitlements, building plan check approvals, building permits, and other miscellaneous deadlines due to the impacts of the novel coronavirus (COVID-19) and other protective measures during a period of local emergency. Attachments Attachment 1 Resolution No. 2021-49 Attachment 2 Exhibit “A” - Executive Order of the Director of Emergency Services Attachment 3 Proclamation 2020-1 Attachment 4 Resolution No. 2020-51 Ward: All Synopsis of Previous Council Actions: March 18, 2020 Mayor and City Council adopted Resolution No. 2020-51 of the ratifying Proclamation No. 2020-01 and proclaiming the existence of a local emergency. April 1, 2020 Mayor and City Council adopted Resolution No. 2020-52, confirming the City Manager’s Emergency Executive Orders pursuant to San Bernardino Municipal Code Section 2.46.090 18 Packet Pg. 913 7134 Page 3 April 15, 2020 Mayor and City Council adopted Resolution No. 2020-63, confirming the City Manager’s Emergency Executive Order pursuant to San Bernardino Municipal Code Section 2.46.090 extending the stay on the City’s compliance with any deadlines established by the City until May 4, 2020. 18 Packet Pg. 914 RESOLUTION NO. 2021-49 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, RATIFYING EXECUTIVE ORDER NO. 2021-01, EXTENDING DEADLINES FOR LAND USE ENTITLEMENTS, BUILDING PLAN CHECK APPROVALS, BUILDING PERMITS, AND OTHER MISCELLANEOUS DEADLINES WHEREAS, on March 13, 2020, the City Manager, in accordance with Section 2.46.090.A.1 of the San Bernardino Municipal Code, issued Proclamation No. 2020-01 proclaiming the existence of a local emergency relating to the worldwide spread of respiratory illness due to the novel coronavirus known as COVID-19; and WHEREAS, on March 18, 2020, the City Council adopted Resolution No. 2020-51, ratifying Proclamation No. 2020-01 and declaring a local emergency; and WHEREAS, conditions of extreme peril to the safety of persons and property continue to exist within the City of San Bernardino caused by the worldwide spread of respiratory illness due to the novel coronavirus known as COVID-19; and WHEREAS, both the State of California and the County of San Bernardino have declared emergencies as a result of the spread of COVID-19; and WHEREAS, during the pendency of the emergency, the City Manager has the power to make and issue rules and regulations on matters reasonably related to the protection of life and property as affected by such emergency; and WHEREAS, executive orders issued by the City Manager must be confirmed by the City Council at the earliest practicable time in order to remain valid. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Council of the City of San Bernardino hereby confirms Executive Order No. 2021-01, attached hereto as Exhibit A and incorporated herein by this reference. SECTION 3. 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 4. Effective Date. This Resolution shall become effective immediately. 18.a Packet Pg. 915 Attachment: Resolution 2021-49 [Revision 1] (7134 : Executive Order Extending Deadlines for Entitlements (All Wards)) Resolution No. 2021-49 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________, 2021. John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, City Clerk Approved as to form: __________________________________ Sonia Carvalho, City Attorney 18.a Packet Pg. 916 Attachment: Resolution 2021-49 [Revision 1] (7134 : Executive Order Extending Deadlines for Entitlements (All Wards)) Resolution No. 2021-49 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-49, adopted at a regular meeting held at the ___ day of _______, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino t his ___ day of ____________ 2021. ______________________________ Genoveva Rocha, CMC, City Clerk 18.a Packet Pg. 917 Attachment: Resolution 2021-49 [Revision 1] (7134 : Executive Order Extending Deadlines for Entitlements (All Wards)) 18.b Packet Pg. 918 Attachment: Executive Order 2021-01 [Revision 1] (7134 : Executive Order Extending Deadlines for Entitlements (All Wards)) 18.b Packet Pg. 919 Attachment: Executive Order 2021-01 [Revision 1] (7134 : Executive Order Extending Deadlines for Entitlements (All Wards)) 18.b Packet Pg. 920 Attachment: Executive Order 2021-01 [Revision 1] (7134 : Executive Order Extending Deadlines for Entitlements (All Wards)) 18.b Packet Pg. 921 Attachment: Executive Order 2021-01 [Revision 1] (7134 : Executive Order Extending Deadlines for Entitlements (All Wards)) 18.c Packet Pg. 922 Attachment: Proclamation 2020-01 (7134 : Executive Order Extending Deadlines for Entitlements (All Wards)) 18.c Packet Pg. 923 Attachment: Proclamation 2020-01 (7134 : Executive Order Extending Deadlines for Entitlements (All Wards)) 18.d Packet Pg. 924 Attachment: Resolution 2020-051 Ratifying Proclamation No. 2020-01 (7134 : Executive Order Extending Deadlines for Entitlements (All Wards)) 18.d Packet Pg. 925 Attachment: Resolution 2020-051 Ratifying Proclamation No. 2020-01 (7134 : Executive Order Extending Deadlines for Entitlements (All Wards)) 18.d Packet Pg. 926 Attachment: Resolution 2020-051 Ratifying Proclamation No. 2020-01 (7134 : Executive Order Extending Deadlines for Entitlements (All Wards)) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: First Amendment to Community Development Block Grant Coronavirus Subrecipient Agreement (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-50 authorizing the execution of the First Amendment to the Community Development Block Grant Coronavirus Subrecipient Agreement between the City of San Bernardino and the Housing Authority of the County of San Bernardino; and 2. Authorize the City Manager or Designee to take any further actions and execute the First Amendment to the Agreement between the City of San Bernardino and the Housing Authority of the County of San Bernardino. Background At a public hearing on September 16, 2020, the Mayor and City Cou ncil approved the City of San Bernardino's (City) Substantial Amendment to the Fiscal Year 2020 -2021 Action Plan (FY 2020-21 AP). As a result of the Substantial Amendment, one of the activities funded was the Eviction Prevention Program. The program’s intent is to prevent evictions by providing payment of rent arrears to landlords of low-income tenants, in the City of San Bernardino, who have experienced financial hardship due to COVID-19. The program is being managed by Housing Authority of the County of San Bernardino, who has extensive experience in managing rental assistance programs countywide. The program does not provide mortgage assistance, as deferral of mortgage payment assistance is being offered by lenders. The Housing Authority of the County of San Bernardino was approved for $660,000. Discussion The Mayor and City Council held a public hearing on September 16, 2020 , to receive public comments and consider the Substantial Amendment to Fiscal Year 2020 -2021 Annual Action Plan (Substantial Amendment to FY 2020-2021 AP). The City entered into an Agreement with the Housing Authority of the County of San Bernardino 19 Packet Pg. 927 7136 Page 2 (Subrecipient) on November 1, 2020, for the Eviction Prevention Program. The City and Subrecipient now wish to amend subsection 2.3 of the Agreement to limit reimbursement of administrative cost to 20% of the grant, which was the original intent of the agreement. However, as a result of an oversight, Section 2.3 was not revised to reflect the intent or correlate with Exhibit B of the agreement. 2020-2025 Key Strategic Targets and Goals Authorizing the First Amendment to the Community Development Block Grant Coronavirus Subrecipient Agreement between the City of San Bernardino and the Housing Authority of the County of San Bernardino aligns with Key Target No. 3: Improved Quality of Life. Specifically, dedicating resources to assist those financially impacted by COVID-19 and reducing the burden of homelessness through collaboration with other entities will improve the quality of life in the community. Fiscal Impact The amendment to the Subrecipient Agreement will not have a fiscal impact to the City. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-50 authorizing the execution of the First Amendment to the Community Development Block Grant Coronavirus Subrecipient Agreement between the City of San Bernardino and the Housing Authority of the County of San Bernardino; and 2. Authorize the City Manager or Designee to take any further actions and execute the First Amendment to the Agreement between the City of San Bernardino and the Housing Authority of the County of San Bernardino. Attachments Attachment 1 Resolution No. 2021-50 Attachment 2 First Amendment to the CDBG-CV Subrecipient Agreement between the City of San Bernardino and the Housing Authority of the County of San Bernardino Attachment 3 Community Development Block Grant Coronavirus Subrecipient Agreement between the City of San Bernardino and the Housing Authority of the County of San Bernardino executed November 1, 2020 Ward: All Synopsis of Previous Council Actions: September 16, 2020 Mayor and City Council approved the City’s Substantial Amendment to the FY 2020-2021 Action Plan August 19, 2020 Mayor and City Council approved the City’s Substantial 19 Packet Pg. 928 7136 Page 3 Amendment to the FY 2020-21 Annual Action Plan April 15, 2020 Mayor and City Council approved the City's Draft Fiscal Year 2020-2021 Action Plan 19 Packet Pg. 929 RESOLUTION NO. 2021-50 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING THE EXECUTION OF THE FIRST AMENDMENT TO THE COMMUNITY DEVELOPMENT BLOCK GRANT CORONAVIRUS SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE HOUSING AUTHORITY OF THE COUNTY OF SAN BERNARDINO WHEREAS, City and Subrecipient entered into Agreement on November 1, 2020; and WHEREAS, City and Subrecipient now wish to amend subsection 2.3 of the Agreement to limit reimbursement of administrative cost to 20% of the grant. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager is hereby authorized to execute the First Amendment to the agreement between the City of San Bernardino and the Housing Authority of the County of San Bernardino, a copy of which is attached hereto marked as Exhibit A and incorporated herein. SECTION 3. The City Council finds that the Project is exempt from further California Environmental Quality Act (CEQA) review under CEQA Guidelines Section 15301, which includes repair, maintenance, and minor alteration of existing public structures involving negligible or no expansion of existing or former use, given that the Project is the renovation of an existing public property and no expansion of its use is proposed. SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 5. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________, 2021. 19.a Packet Pg. 930 Attachment: Attachment 1 - Resloution 2021-50 [Revision 1] (7136 : First Amendment to Community Development Block Grant Coronavirus Resolution No. 2021-50 John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, City Clerk Approved as to form: _________________________________ Sonia Carvalho, City Attorney 19.a Packet Pg. 931 Attachment: Attachment 1 - Resloution 2021-50 [Revision 1] (7136 : First Amendment to Community Development Block Grant Coronavirus Resolution No. 2021-50 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-50, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 19.a Packet Pg. 932 Attachment: Attachment 1 - Resloution 2021-50 [Revision 1] (7136 : First Amendment to Community Development Block Grant Coronavirus 1 FIRST AMENDMENT TO THE COMMUNITY DEVELOPMENT BLOCK GRANT CORONAVIRUS SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE HOUSING AUTHORITY OF THE COUNTY OF SAN BERNARDINO This First Amendment (“First Amendment”) to the Community Development Block Grant – Coronavirus Subrecipient Agreement (“Agreement”) is entered into by and between the City of San Bernardino, a charter city organized under the laws of the State of California (hereinafter the “City”), and the Housing Authority of the County of San Bernardino, a California Public Entity (hereinafter the “Subrecipient”) as of ____________ __, 2021. City and Subrecipient are at times referred to individually as “Party” and collectively as the “Parties.” WHEREAS, City and Subrecipient entered into Agreement on November 1, 2020; and WHEREAS, City and Subrecipient now wish to amend subsection 2.3 of the Agreement to limit reimbursement of administrative cost to 20% of the grant. NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, the Parties agree as follows: 1. Amendment. Subsection 2.3 of the Agreement is hereby amended to read as follows: “2.3 Reimbursement of Rental Assistance and Administrative Costs. City shall reimburse Subrecipient for Rental Assistance Costs actually disbursed on behalf of Eligible Households pursuant to this Agreement, if any, and in accordance with approved Scope of Services. City has agreed to reimburse Subrecipient for administrative costs or expenses incurred by Subrecipient to manage or implement the Program (as that term is defined and identified in the Scope of Services, attached hereto as Exhibit A and incorporated herein by this reference). Reimbursement of administrative costs shall be limited to 20% of the actual amount of rental payments grant. City’s payment obligations shall be limited to the actual amount of rental payments disbursed by the Subrecipient in accordance with the terms of this Agreement, Subrecipient’s Program Guidelines (as adopted by Subrecipient and approved by City), Subrecipient’s Program Policy and Procedures (as adopted by Subrecipient and approved by the City), and the approved Budget.” 2. Effect on Other Provisions. All other provisions of the Agreement, as amended by the First Amendment, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed the day and year first above written. 19.b Packet Pg. 933 Attachment: Attachment 2 - First Amendment (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 2 “CITY” CITY OF SAN BERNARDINO a municipal corporation and charter city Dated:__________________________ __________________________ Robert D. Field City Manager APPROVED AS TO FORM: [OFFICE OF THE CITY ATTORNEY] By: “SUBRECIPIENT” Housing Authority of the County of San Bernardino, a California Public Entity Dated:__________________________ __________________________ Maria Razo Executive Director 19.b Packet Pg. 934 Attachment: Attachment 2 - First Amendment (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 935 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 936 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 937 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 938 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 939 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 940 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 941 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 942 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 943 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 944 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 945 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 946 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 947 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 948 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 949 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 950 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 951 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 952 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 953 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 954 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 955 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 956 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 957 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 958 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 959 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 960 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 961 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 962 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 963 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 964 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 965 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 966 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient 19.c Packet Pg. 967 Attachment: Attachment 3 - Executed Agreement (7136 : First Amendment to Community Development Block Grant Coronavirus Subrecipient Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: Agreement with State of California for Permanent Local Housing Allocation (PLHA) Program (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-51 authorizing the City Manager or Designee to enter into an agreement with the State of California for the Permanent Local Housing Allocation program and the accept the $1,622,027 grant; and 2. Direct the Finance Director to amend the FY 2020/21 adopted budge t to establish a new fund and program for PLHA for $1,622,027. Background In September 2017, Governor Brown signed Senate Bill 2 (SB2). The bill established the Building Homes and Jobs Trust Fund. SB2 imposed a fee of $75 on the recordation of certain types of real estate documents. Seventy percent of the moneys collected are to be deposited into the Jobs Trust Fund, beginning in 2019, and allocated to local government for eligible housing activities. The intent of SB2 is to provide a permanent source of funding to local government for housing-related projects and programs that address the unmet housing needs in their communities. On April 15, 2020, the Mayor and City Council authorized submittal of an application to the State Department of Housing and Community Development (HCD) for the PLHA program. In October 2020, the City received approval from HCD of its PLHA application. Discussion Each year, for a five year period, the City will receive a local allocation of PLHA funds, based on the real estate document recordation fees collected. The City will have until June 30, 2030 to expend all funds. The acceptance of the grant and allocation of $1,622,027 will allow the City to fund following activities: 20 Packet Pg. 968 7137 Page 2 1. The development, acquisition rehabilitation, and preservation of rental and ownership housing; 2. Assistance for homeownership opportunities; 3. Funds to capitalize reserves for services needed in new permanent supportive housing (such as case management, substance abuse rehabilitation, and ment al health counseling); and 4. Assisting persons who are experiencing or are at risk of homelessness, including rapid rehousing, rental assistance, operating and capital costs for navigation services to locate housing and for emergency shelters. 2020-2025 Key Strategic Targets and Goals Acceptance of the PLHA grant and authorization to enter into a standard agreement with the State of California aligns with Key Target No. 3: Improved Quality of Life, by providing funding for ownership housing, housing for homeless persons, and family rental housing. Fiscal Impact The acceptance of PLHA Program grant funds will have no fiscal impact on the City’s general funds. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-51 authorizing the City Manager or Designee to enter into an agreement with the State of California for the Permanent Local Housing Allocation program and the accept the $1,622,027 grant; and 2. Direct the Finance Director to amend the FY 2020/21 adopted budget to establish a new fund and program for PLHA for $1,622,027. Attachments Attachment 1 Resolution 2021-51 Attachment 2 Standard Agreement with the State of California Department of Housing and Community Development Ward: All Synopsis of Previous Council Actions: April 15, 2020 The Mayor and City Council adopted Resolution No. 2020-60, authorizing the submittal of a PLHA application. May 20, 2020 The Mayor and City Council adopted Resolution No. 2020-79 authorizing the resubmittal of a PLHA application due to a modification to the State’s template resolution, and Resolution 2020-92 approving the PLHA housing plan. 20 Packet Pg. 969 7137 Page 3 December 12, 2020 The Mayor and City Council adopted Resolution No. 2020-290 authorizing the resubmittal of a PLHA application to authorize the new City Manager as signatory on the future Standard Agreement, and Resolution 2020-301 approving the PLHA housing plan. 20 Packet Pg. 970 RESOLUTION NO. 2021-51 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER OR ASSISTANT CITY MANAGER TO ENTER INTO AN AGREEMENT WITH THE STATE OF CALIFORNIA FOR THE PERMANENT LOCAL HOUSING ALLOCATION (PLHA) PROGRAM AND ACCEPT THE $1,622,027 GRANT WHEREAS, the State Department of Housing and Community Development (“Department”) is authorized to provide up to $195 million under the SB 2 Permanent Local Housing Allocation Program Formula Component from the Building Homes and Jobs Trust Fund for assistance to Cities and Counties; and WHEREAS, the Department issued a Notice of Funding Availability (“NOFA”) dated 02/26/2020 under the Permanent Local Housing Allocation (PLHA) Program; and WHEREAS, the City of San Bernardino applied under the NOFA, and has received a PLHA grant of $1,622,027 in order to carry out eligible housing activities; and WHEREAS, the Mayor and City Council of the City of San Bernardino consent to accept the PLHA grant. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 1. The Mayor and City Council hereby authorize the City Manager or the Assistant City Manager to enter into a Standard Agreement with the State of California for the Permanent Local Housing Allocation (PLHA) program. SECTION 2. The Mayor and City Council hereby direct the Finance Director to amend the FY 2020-21 adopted budget to establish a new fund and program for PLHA in the amount of $1,622,027. SECTION 3. 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. 20.a Packet Pg. 971 Attachment: Attachment 1 - Resolution No. 2021-51 [Revision 1] (7137 : Agreement with State of California for Permanent Local Housing Resolution No. 2021-51 SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 5. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 20.a Packet Pg. 972 Attachment: Attachment 1 - Resolution No. 2021-51 [Revision 1] (7137 : Agreement with State of California for Permanent Local Housing Resolution No. 2021-51 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-51, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 20.a Packet Pg. 973 Attachment: Attachment 1 - Resolution No. 2021-51 [Revision 1] (7137 : Agreement with State of California for Permanent Local Housing 20-PLHA-15184 City of San Bernardino Upon HCD Approval $1,622,027.00 STATE OF CALIFORNIA - DEPARTMENT OF GENERAL SERVICES STANDARD AGREEMENT STD 213 (Rev. 03/2019) AGREEMENT NUMBER PURCHASING AUTHORITY NUMBER (if applicable) 1. This Agreement is entered into between the Contracting Agency and the Contractor named below: CONTRACTING AGENCY NAME DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT CONTRACTOR'S NAME 2. The term of this Agreement is: START DATE 6/30/2030 THROUGH END DATE 3. The maximum amount of this Agreement is: 4. The parties agree to comply with the terms and conditions of the following exhibits, which are by this reference made a part of the Agreement. EXHIBITS Exhibit A Authority, Purpose and Scope of Work Exhibit B Budget Detail and Payment Provisions Exhibit C* State of California General Terms and Conditions Exhibit D PLHA Program Terms and Conditions Exhibit E Program-Specific Provisions and Special Conditions 5 TITLE PAGES 3 9 4 GTC - 04/2017 TOTAL NUMBER OF PAGES ATTACHED 21 https://www.dgs.ca.gov/OLS/ResourcesThese documents can be viewed at Items shown with an asterisk (*), are hereby incorporated by reference and made part of this agreement as if attached hereto. CONTRACTOR NAME (if other than an individual, state whether a corporation, partnership,etc.) IN WITNESS WHEREOF, THIS AGREEMENT HAS BEEN EXECUTED BY THE PARTIES HERETO. CONTRACTOR CONTRACTOR BUSINESS ADDRESS 290 North D Street City of San Bernardino CITY STATE ZIP San Bernardino CA 92401 PRINTED NAME OF PERSON SIGNING TITLE DATE SIGNEDCONTRACTOR AUTHORIZED SIGNATURE STATE OF CALIFORNIA CONTRACTING AGENCY NAME Department of Housing and Community Development STATE ZIPCITYCONTRACTING AGENCY ADDRESS 2020 W. El Camino Ave., Suite 130 Sacramento CA 95833 PRINTED NAME OF PERSON SIGNING TITLE Shaun Singh Contracts Manager, Business & Contract Services Branch DATE SIGNEDCONTRACTING AGENCY AUTHORIZED SIGNATURE California Department of General Services Approval (or exemption, if applicable) Exempt per; SCM Vol. 1 4.04.A.3 (DGS memo dated 6/12/1981) 20.b Packet Pg. 974 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation (PLHA) City of San Bernardino 20-PLHA-15184 Page 1 of 5 EXHIBIT A Permanent Local Housing Allocation (PLHA) Program – Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 AUTHORITY, PURPOSE AND SCOPE OF WORK 1. Authority Pursuant to Part 2 Chapter 2.5 of Division 31 of the Health and Safety Code (commencing with Section 50470) Statutes of 2017 (SB 2, Atkins), which created the Building Homes and Jobs Trust Fund and the Permanent Local Housing Allocation (“PLHA”) Program (“Program”), this Standard Agreement along with all its exhibits (the “Agreement”) is entered under the authority of and in furtherance of the Program. Pursuant to Health and Safety Code, Section 50470 (b), the California Department of Housing and Community Development (referred to herein as “HCD” or “Department”) has issued a Notice of Funding Availability (the “NOFA”), dated February 26, 2020, to govern administration of the fund and carry out the Program. 2. Purpose In accordance with the authority cited above, an application was made to the State (the “Application”) for assistance from the Program for the purpose of making funding available to eligible local governments in California for housing related projects and programs that assist in addressing the unmet housing needs of their local communities. By entering into this Agreement and thereby accepting the award of the PLHA grant funds (the “Grant”), the Contractor (sometimes referred to herein as the “Applicant”) agrees to comply with the terms and conditions of the NOFA, this Agreement, the representations contained in the Application, and the requirements of the authorities cited above. 3. Definitions Capitalized terms not otherwise defined herein shall have the meaning of the definitions set forth in Health and Safety Code Section 50470 and Section 101 of the Guidelines. 4. Scope of Work A. The scope of work (“Work”) for this Agreement shall consist of one or more of the following eligible uses: 1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-, very low-, low-, or moderate-income households, including necessary Operating subsidies. 20.b Packet Pg. 975 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation City of San Bernardino 20-PLHA-15184 Page 2 of 5 EXHIBIT A Permanent Local Housing Allocation (PLHA) Program – Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 2) The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory dwelling units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high- cost areas. ADUs shall be available for a term of no less than thirty days. 3) Matching portions of funds placed into local or regional housing trust funds. 4) Matching portions of funds available through the Low- and Moderate- Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176. 5) Capitalized Reserves for Services connected to the preservation and creation of new Permanent supportive housing. 6) Assisting persons who are experiencing or at risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing. a) This Activity may include subawards to Administrative Entities as defined in HSC Section 50490(a)(1-3) that were awarded California Emergency Solutions and Housing (CESH) program or Homeless Emergency Aid Program (HEAP) funds for rental assistance to continue assistance to these households. b) Applicants must provide rapid rehousing, rental assistance, navigation centers, emergency shelter, and transitional housing activities in a manner consistent with the Housing First practices described in 25 CCR, Section 8409, subdivision (b)(1)-(6) and in compliance with WIC Section 8255(b)(8). An Applicant allocated funds for the new construction, rehabilitation, and preservation of Permanent supportive housing shall incorporate the core components of Housing First, as provided in WIC Section 8255, subdivision (b). 7) Accessibility modifications in Lower-income Owner-occupied housing. 20.b Packet Pg. 976 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation City of San Bernardino 20-PLHA-15184 Page 3 of 5 EXHIBIT A Permanent Local Housing Allocation (PLHA) Program – Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 8) Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments. 9) Homeownership opportunities, including, but not limited to, down payment assistance. 10) Fiscal incentives made by a county to a city within the county to incentivize approval of one or more Affordable housing Projects, or matching funds invested by a county in an Affordable housing development Project in a city within the county, provided that the city has made an equal or greater investment in the project. The county fiscal incentives shall be in the form of a grant or low-interest loan to an Affordable housing Project. Matching funds investments by both the county and the city also shall be a grant or low interest deferred loan to the Affordable housing Project. B. A Local government that receives an allocation shall use no more than five percent of the allocation for costs related to the administration of the Activity(ies) for which the allocation was made. Staff and overhead costs directly related to carrying out the eligible activities described in Section 301 are “activity costs” and not subject to the cap on “administrative costs.” A Local government may share any funds available for administrative costs with entities that are administering its allocation. C. Two or more local governments that receive PLHA allocations may expend those moneys on an eligible jointly funded project as provided in Section 50470 (b)(2)(B)(ii)(IV). An eligible jointly funded project must be an eligible Activity pursuant to Section 301(a) and be located within the boundaries of one of the Local governments. D. Entitlement Local governments may use the flow of PLHA funds to incentivize private lender loans and to guarantee payments for some or all public agency bond financings for activities consistent with the uses identified in Section 301 “Eligible Activities”. This loan guarantee Activity must be identified and fully explained in the Applicant’s “Plan”. 20.b Packet Pg. 977 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation City of San Bernardino 20-PLHA-15184 Page 4 of 5 EXHIBIT A Permanent Local Housing Allocation (PLHA) Program – Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 5. Department Contract Coordinator The Department’s Contract Coordinator for this Agreement is the Division of Financial Assistance, Grant Management Section PLHA Manager or their designee. Unless otherwise informed, any notice, report, or other communication required by this Agreement shall be mailed by first class to the Department Contract Coordinator at the following address: California Department of Housing and Community Development Attention: Permanent Local Housing Allocation (PLHA) Grant Management Section, Suite 400 2020 West El Camino Avenue, CA 95833 P. O. Box 952050 Sacramento, CA 94252-2050 6. Contractor Contract Coordinator The Contractor’s contract coordinator for this Agreement is the Authorized Representative listed below. Unless otherwise informed, any notice, report, or other communication required by this Agreement may be mailed by first class mail, or sent through a commercial courier to the Authorized Representative at the following address: Authorized Representative Name: Robert D. Field Rebekah Kramer Authorized Representative Title: City Manager Assist City Manager Agency Name: City of San Bernardino Address: 290 North D Street San Bernardino, CA 92401 Phone No.: (909) 384-5138 Email Address: Field_RO@sbcity.org 7. Effective Date, Term of Agreement, and Deadlines A. This Agreement is effective upon approval by the Department, which is the date executed by all parties (such date, the “Effective Date”). B. This Agreement shall terminate on June 30, 2030. 20.b Packet Pg. 978 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation City of San Bernardino 20-PLHA-15184 Page 5 of 5 EXHIBIT A Permanent Local Housing Allocation (PLHA) Program – Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 C. Except for predevelopment expenses for construction projects funded by PLHA and costs to develop and prepare the Plan and the PLHA application, no costs incurred more than one year prior to commitment by the Local government may be paid from PLHA funds. Reimbursement of expenses to prepare the Plan and the PLHA application are subject to the cap on administrative fees. D. Any Grant funds which have not been expended by the expenditure deadline shall be disencumbered and revert to the Department. The expenditure deadline is fifty-eight months from the date of the budget appropriation for each year of funds included in this Agreement. 20.b Packet Pg. 979 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation City of San Bernardino 20-PLHA-15184 Page 1 of 3 EXHIBIT B Permanent Local Housing Allocation (PLHA) Program – Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 BUDGET DETAIL AND PAYMENT PROVISIONS 1. Budget Detail The budget detail is contained in Exhibit E in this Agreement. Contractor will be responsible for maintaining oversight of grant amounts and determining whether an amended PLHA Plan is required due to reallocation of more than ten percent among Activities funded per Section 302(c)(5). 2. Conditions of Disbursement Prior to receiving any Grant funds, the Contractor shall submit the following for the Department’s approval: A. Government TIN Form, as applicable. B. No Funding will be disbursed to Contractor unless Contractor and any delegating Local government has an approved Housing Element and is in compliance with the Housing Element Annual Progress Report requirements, pursuant to PLHA Program Guidelines section 302(a) and (b). C. Contractor shall not be eligible to receive a new allocation if the Contractor has accrued an uncommitted amount of four times the pending allocation if the pending allocation is $125,000 or less; or $500,000 if the pending allocation is greater than $125,000 and less than $500,000; or the amount of the pending allocation if the allocation is $500,000 or more. 3. Performance A. All funds must be disbursed within fifty-eight months of the budget appropriation. Funds that are not disbursed within fifty-eight months of the budget appropriation will revert to the Housing Rehabilitation Loan Fund. 20.b Packet Pg. 980 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation City of San Bernardino 20-PLHA-15184 Page 2 of 3 EXHIBIT B Permanent Local Housing Allocation (PLHA) Program – Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 B. It is mutually agreed that if the Budget Act of the current year and/or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall be reduced proportionate to those years already allocated, calculated at the time that the appropriation is reduced or terminated and reduced accordingly. All subsequent years shall be terminated, and the grant agreement shall be of no further force and effect, after amounts due for the period upon the reduced appropriation or termination are returned by the Contractor to the State. In this event, the State and Contractor shall be relieved of any and all obligations under this Agreement. If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the sole discretion to cancel this Agreement without cause, no liability occurring to the State, or amend the Agreement and amount allocated to Contractor. 4. Fiscal Administration A. The Contractor may request a disbursement of 100 percent of total awarded Grant funds after executing the Standard Agreement. Administrative costs related to the planning and execution of eligible activities shall not exceed five percent of the Grant amount. B. A separate checking account for the Grant funds is not required. However, the Contractor shall deposit Grant funds in an interest-bearing checking or savings account insured by the federal or state government. All interest earned from the deposit of Grant funds shall be used for eligible Program activities and accounted for in Contractor’s annual report. C. The Contractor shall make a good faith effort to minimize the number of disbursement requests by anticipating and requesting funds in advance. D. The Contractor may request that Grant funds awarded for a certain eligible activity be moved to another activity without an amendment to this Agreement. This request must be made in writing to HCD if the change from one activity to another exceeds ten percent of the grant amount and shall be effective only upon written HCD approval. HCD’s decision to approve or deny any such request shall be final, absent fraud, mistake or arbitrariness per Section 302(c)(5). 20.b Packet Pg. 981 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation City of San Bernardino 20-PLHA-15184 Page 3 of 3 EXHIBIT B Permanent Local Housing Allocation (PLHA) Program – Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 5. Budget Contingency Clause A. It is mutually agreed that if the Budget Act of the subsequent years covered under this Agreement does not appropriate sufficient funds for the program this Agreement shall remain in force and effect until the time of notice of reduced or terminated appropriation, The Agreement shall be terminated by the State by providing Contractor written notice of not less than thirty days prior to the effective date of the termination. In the event of termination by the State due to lack of Budget appropriation, the State and Contractor shall be relieved of any and all obligations under this Grant Agreement on the effective date of termination and the Contractor shall return the amount for subsequent year allocations. B. Subject to Section 5A. above, if funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the sole discretion to cancel this Agreement without cause, no liability occurring to the State, or amend the current Grant Agreement and amount allocated to Contractor. 20.b Packet Pg. 982 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation City of San Bernardino 20-PLHA-15184 Page 1 of 9 EXHIBIT D Permanent Local Housing Allocation (PLHA) Program – Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 PLHA PROGRAM TERMS AND CONDITIONS 1. Effective Date, Commencement of Work This Agreement is effective upon the date of the Department representative’s signature on page one of the fully executed Standard Agreement, STD 213. Contractor agrees that work under this agreement shall not commence until execution of the STD 213, (the “Effective Date”). 2. Strict Compliance Contractor will strictly comply with the terms, conditions and requirements of the Permanent Local Housing Allocation (PLHA) Statutes, Guidelines, the Notice of Funding Availability (NOFA), and this Agreement. 3. Contractor’s Application for Funds A. Contractor has submitted to the Department an Application for a Grant under the Program. The Department is entering into this Agreement based on, and in substantial reliance upon, Contractor’s facts, information, assertions and representations contained in that Application, and in any subsequent modifications or additions thereto approved by the Department. The Application and any approved modifications and additions thereto are hereby incorporated into this Agreement. B. Contractor warrants that all information, facts, assertions and representations contained in the Application and approved modifications and additions thereto are true, correct, and complete to the best of Contractor’s knowledge. In the event that any part of the Application and any approved modification and addition thereto is untrue, incorrect, incomplete, or misleading in such a manner that would substantially affect the Department's approval, disbursement, or monitoring of the funding and the Grants or activities governed by this Agreement, then the Department may declare a breach hereof and take such action or pursue such remedies as are provided for breach hereof. 20.b Packet Pg. 983 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation City of San Bernardino 20-PLHA-15184 Page 2 of 9 EXHIBIT D Permanent Local Housing Allocation (PLHA) Program – Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 4. Eligible Activities Grant funds awarded to the Contractor and expended by either the Contractor or any entity to which Contractor awards funds shall be used for the eligible activities set forth in Exhibit A as required by the PLHA Statutes. The following additional requirements shall apply: A. Each Contractor shall submit a Plan detailing: 1) The manner in which allocated funds will be used for eligible activities. 2) A description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below sixty percent of AMI. Programs targeted at households at or below sixty percent of AMI will be deemed to meet this requirement. 3) A description of how the Plan is consistent with the programs set forth in the Local government’s Housing Element. 4) Evidence that the Plan was authorized and adopted by resolution by the Local government and that the public had an adequate opportunity to review and comment on its content. 5) The following for each proposed Activity: a) A description of each proposed Activity, pursuant to Section 301 of the Guidelines and the percentage of funding allocated to it. The description shall specifically include the percentage of funds, if any, directed to Affordable Owner-Occupied Workforce Housing (AOWH). b) The projected number of households to be served at each income level and a comparison to the unmet share of the Regional Housing Needs Allocation (RHNA) at each income level. c) A description of major steps/actions and a proposed schedule required for the implementation and completion of the Activity. d) The period of affordability and level of affordability for each Activity. Rental Projects are required to have affordability periods of at least fifty-five years. 20.b Packet Pg. 984 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation City of San Bernardino 20-PLHA-15184 Page 3 of 9 EXHIBIT D Permanent Local Housing Allocation (PLHA) Program – Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 6) The Plan is required to be for a term of five years. Local governments shall obtain approval of the Department for amendments made to the Plan in each succeeding year of the term of the Plan. Reallocations of more than ten percent of funds among Activities require amendment of the Plan, with approval granted by the governing body at a publicly noticed public meeting. 7) If funds are used for the acquisition, construction, or rehabilitation of for- sale housing projects or units within for-sale housing projects, the grantee shall record a deed restriction against the property that will ensure compliance with one of the following requirements if the property is no longer the primary residence of the homeowner due to sale, transfer or lease, unless it is in conflict with the requirements of another public funding source or law: a) PLHA loan and any interest thereon shall be repaid to the Local government’s PLHA account. The Local government shall reuse the repayments consistent with the Eligible Activities per Section 301 of the Guidelines; or, b) The initial owner and any subsequent owner shall sell the home at an Affordable housing cost to a qualified Lower-Income or Moderate-Income household; or, c) The homeowner and the Local government shall share the equity in the unit pursuant to an equity-sharing agreement. The grantee shall reuse the proceeds of the equity-sharing agreement consistent with the Eligible Activities per Section 301 of the Guidelines. 8) If funds are used for the development of an affordable rental housing project, the Local government shall make the PLHA assistance in the form of a loan to the Sponsor of the project. The loan shall be evidenced through a Promissory Note secured by a Deed of Trust. 9) A program income reuse plan describing how repaid loans shall be reused for eligible activities specified in Section 301 of the Guidelines. 20.b Packet Pg. 985 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation City of San Bernardino 20-PLHA-15184 Page 4 of 9 EXHIBIT D Permanent Local Housing Allocation (PLHA) Program – Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 5. Core Practices A. A Contractor or Subrecipient must provide eligible activities in a manner consistent with the housing first practices described in California Code of Regulations, title 25, section 8409(b)(1)-(6). A Contractor or Subrecipient allocated funds for eligible activities that provide permanent housing shall incorporate the core components of Housing First as provided in Section 8255(b) of the Welfare and Institutions Code. 6. Monitoring Grant Activities A. Contractor shall monitor the activities selected and awarded by them to ensure compliance with PLHA requirements. An onsite monitoring visit of Subrecipients and any other service providers shall occur whenever determined necessary by the Contractor, but at least once during the Grant period. B. The Department will monitor the performance of the Contractor based on a risk assessment and according to the terms of this Agreement. The Department may also monitor any Subrecipients of the Contractor as the Department deems appropriate based on a risk assessment. C. As requested by the Department, the Contractor shall submit to the Department all PLHA monitoring documentation necessary to ensure that Contractor and its Subrecipients are in continued compliance with PLHA requirements. Such documentation requirements and the submission deadline shall be provided by the Department at the time such information is requested from the Contractor. 7. Reporting/Audits A. Commencing with the Effective Date of this Agreement and continuing through the Expiration Date, the Contractor shall submit an annual report to the Department by July 31 of each year that reports all activities from the previous fiscal year (7/1–6/30), on forms provided by the Department. The first report will be due on July 31, 2021 and will report all activities from date of initial fund disbursement through June 30, 2021. B. The annual report shall contain a detailed report which must include, at a minimum: 1) Identification of the Eligible Activities to which the Contractor committed program funds, and the income levels of households assisted. 20.b Packet Pg. 986 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation City of San Bernardino 20-PLHA-15184 Page 5 of 9 EXHIBIT D Permanent Local Housing Allocation (PLHA) Program – Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 2) Amounts awarded to Subrecipients with the activity(ies) identified; 3) Identification of the Eligible Activities upon which the Contractor expended program funds, and the income levels of households assisted and the affordability level for any units assisted; and, 4) Close out report for contracts that were fully expended and in which all activities funded were completed during the fiscal year. C. The Department may request additional information as needed to meet other applicable reporting or audit requirements. D. The Contractor is responsible for the completion of audits and all costs of preparing audits. E. The Department reserves the right to perform or cause to be performed a financial audit. At the Department’s request, the Contractor shall provide, at its own expense, a financial audit prepared by a certified public accountant. F. If a financial audit is required by the Department, the audit shall be performed by an independent certified public accountant. Selection of an independent audit firm shall be consistent with procurement standards contained in 24 CFR 85.36. 1) The Contractor shall notify the Department of the auditor's name and address immediately after the selection has been made. The contract for the audit shall allow access by the Department to the independent auditor's working papers. 2) The Contractor is responsible for the completion of audits and all costs of preparing audits. 3) If there are audit findings, the Contractor must submit a detailed response acceptable to the Department for each audit finding within ninety (90) days from the date of the audit finding report. 8. Retention and Inspection of Records A. The Contractor is responsible for maintaining records, which fully disclose the activities funded by the Grant. Adequate documentation of each transaction shall be maintained to permit the determination, through an audit if requested by the State, of the accuracy of the records and the allowability of expenditures charged to Grant funds. 20.b Packet Pg. 987 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation City of San Bernardino 20-PLHA-15184 Page 6 of 9 EXHIBIT D Permanent Local Housing Allocation (PLHA) Program – Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 B. The Contractor agrees that the Department or its designee shall have the right to review, obtain, and copy all records and supporting documentation pertaining to performance of this Agreement. The Contractor agrees to provide the Department or its designee, with any relevant information requested. The Contractor agrees to permit the Department or its designee access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees who might reasonably have information related to such records and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with the PLHA Statutes, the NOFA, and this Agreement. C. The Contractor further agrees to retain all records for a period of five years after the end of the term of this Agreement: 1) If any litigation, claim, negotiation, audit, monitoring, inspection or other action has been started before the expiration of the required record retention period, all records must be retained until completion of the action and resolution of all issues, which arise from it. 2) The Contractor also agrees to include in any contract that it enters into in an amount exceeding $10,000, the Department’s right to audit the contractor’s records and interview their employees. The Contractor shall comply with the caveats and be aware of the penalties for violation of fraud and for obstruction of investigation as set forth in California Public Code Section 10115.10. D. The determination by the Department of the eligibility of any expenditure shall be final. If the eligibility of any expenditure cannot be determined because records or documentation are inadequate, the expenditure may be disallowed, and HCD shall determine the reimbursement method for the amount disallowed. E. The Contractor shall retain all books and records relevant to this Agreement for a minimum of five years after the end of the term of this Agreement. Records relating to any and all audits or litigation relevant to this Agreement shall be retained for five years after the conclusion or resolution of the matter. 9. Breach and Remedies A. The following shall each constitute a breach of this Agreement: 1) Contractor’s failure to comply with the terms of this Agreement. 20.b Packet Pg. 988 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation City of San Bernardino 20-PLHA-15184 Page 7 of 9 EXHIBIT D Permanent Local Housing Allocation (PLHA) Program – Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 2) Use of, or permitting the use of, Grant funds provided under this Agreement for any ineligible costs or for activities not approved under this Agreement. 3) Any failure to comply with the deadlines set forth in this Agreement. B. In addition to any other remedies that may be available to the Department in law or equity for breach of this Agreement, the Department may: 1) Bar the Contractor from applying for future PLHA and other HCD funds; 2) Revoke any other existing PLHA award(s) to the Contractor; 3) Require the return of any unexpended PLHA funds disbursed under this Agreement; 4) Require repayment of PLHA funds disbursed and expended under this agreement; 5) Require the immediate return to the Department of all funds derived from the use of PLHA funds including, but not limited to recaptured funds and returned funds; 6) Seek, in a court of competent jurisdiction, an order for specific performance of the defaulted obligation or the appointment of a receiver to complete the technical assistance in accordance with the PLHA Program requirements; and, 7) Seek such other remedies as may be available under the relevant agreement or any law. C. All remedies available to the Department are cumulative and not exclusive. D. The Department may give written notice to the Contractor to cure the breach or violation within a period of not less than fifteen days. 20.b Packet Pg. 989 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation City of San Bernardino 20-PLHA-15184 Page 8 of 9 EXHIBIT D Permanent Local Housing Allocation (PLHA) Program – Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 10. Termination A. The Department may terminate this Agreement at any time for cause by giving a minimum of thirty days’ notice of termination, in writing, to the Contractor. Cause shall consist of, violations of any terms and/or special conditions of this Agreement, the PLHA Statutes, or the NOFA. Upon termination of this Agreement, unless otherwise approved in writing by the Department, any unexpended funds received by the Contractor shall be returned to the Department within thirty days of the notice of termination. B. This Agreement is subject to any additional restrictions, limitations or conditions, or statute, regulations or any other laws, whether federal or those of the State of California, or of any agency, department, or any political subdivision of the federal or the State of California governments, which may affect the provisions, terms or funding of this Agreement in any manner. C. The Department has the option to terminate this Agreement under the thirty-day cancellation clause or to amend this Agreement to reflect any reduction of funds. 11. Waivers No waiver of any breach of this Agreement shall be held to be a waiver of any prior or subsequent breach. The failure of the Department to enforce at any time the provisions of this Agreement, or to require at any time, performance by the Contractor of these provisions, shall in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of the Department to enforce these provisions. 12. Relocation Contractor shall comply with all requirements of applicable California relocation law (Gov. Code, § 7260 et seq. and the regulations promulgated thereunder at Cal. Code Regulations, Title. 25, § 6000 et seq.). Any relocation plan for the Development shall be subject to the review and approval by the State. 20.b Packet Pg. 990 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation City of San Bernardino 20-PLHA-15184 Page 9 of 9 EXHIBIT D Permanent Local Housing Allocation (PLHA) Program – Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 13. Special Conditions Contractors and Subrecipients The Contractor agrees to comply with all conditions of this Agreement including the Special Conditions set forth in Exhibit E. These conditions shall be met to the satisfaction of the Department prior to disbursement of funds. The Contractor shall ensure that all Subrecipients are made aware of and agree to comply with all conditions of this Agreement and the applicable State requirements governing the use of Grant funds. The Contractor shall ensure that all Subrecipients are qualified to do business and in good standing with the California Secretary of State and the California Franchise Tax Board. Failure to comply with these conditions may result in cancellation of this Agreement. 14. Compliance with State and Federal Laws, Rules, Guidelines and Regulations The Contractor agrees to comply with all State and Federal laws, rules and regulations that pertain to construction, health and safety, labor, fair employment practices, equal opportunity, and all other matters applicable to the Grant, the Contractor, its Subrecipients, and any other Grant activity. 15. Litigation A. If any provision of this Agreement, or an underlying obligation, is held invalid by a court of competent jurisdiction, such invalidity, at the sole discretion of the Department, shall not affect any other provisions of this Agreement and the remainder of this Agreement shall remain in full force and effect. Therefore, the provisions of this Agreement are, and shall be, deemed severable. B. The Contractor shall notify the Department immediately of any claim or action undertaken by or against it, which affects or may affect this Agreement or the Department and shall take such action with respect to the claim or action as is consistent with the terms of this Agreement and the interests of the Department. 20.b Packet Pg. 991 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation City of San Bernardino 20-PLHA-15184 Page 1 of 4 EXHIBIT E Permanent Local Housing Allocation (PLHA) Program - Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 PROGRAM-SPECIFIC PROVISIONS AND SPECIAL CONDITIONS 1. Program-Specific Provisions The following are project-specific terms and conditions (referred to as enumerated provision(s) for ease of reference in prior exhibits) and shall inform the references made to project-specific information not contained in those prior exhibits. Budget Detail: Contractor has been awarded the following grant activity amounts for 2019: $1,622,027 Estimated five year allocation may not exceed: $9,732,162 Payees: A. The authorized Payee(s) is/are as specified below: Name: City of San Bernardino Amount: $1,622,027 Plan: Activity 1 – Affordable Rental Housing Project. The PLHA funds will be used to assist with gap financing for multifamily rental housing projects identified in City's approved Pipeline Project List. Funding Allocation Year 2019 2020 2021 2022 2023 Type of Activity Affordable Rental Housing Affordable Rental Housing Affordable Rental Housing Affordable Rental Housing Affordable Rental Housing Percentage of Funds Allocated for each Activity 40% 40% 45% 50% 45% Area Median Income Level Served 60% 60% 60% 60% 60% 20.b Packet Pg. 992 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation City of San Bernardino 20-PLHA-15184 Page 2 of 4 EXHIBIT E Permanent Local Housing Allocation (PLHA) Program - Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 Activity 2 – Preservation of Affordable Rental and Ownership Housing. The City will utilize PLHA funds to expand the existing homeownership preservation program for households with incomes of up to 120% of AMI (workforce housing). Funding Allocation Year 2019 2020 2021 2022 2023 Type of Activity Owner Owner Owner Owner Owner Percentage of Funds Allocated for each Activity 35% 30% 30% 25% 30% Area Median Income Level Served 120% 120% 120% 120% 120% Activity 6 – Emergency Shelters and Transitional Housing. The PLHA funds will be used to help fund the rehabilitation of the City's Men’s Shelter. Another component of the City's planned PLHA homeless assistance will be homelessness prevention, rapid rehousing, shelter operations, and street outreach provided by the following City-contracted community service providers: Step Up on Second, Salvation Army, Community Action Partnership of San Bernardino (CAPS), and Family Service Association of Redlands (FSA). The City anticipates providing services to an additional 100 homeless persons by increased funding to service providers with PLHA funds. Funding Allocation Year 2019 2020 2021 2022 2023 Type of Activity Emergency Shelters Emergency Shelters Transitional Transitional Transitional Percentage of Funds Allocated for each Activity 25% 20% 10% 10% 10% Area Median Income Level Served 30% 30% 30% 30% 30% 20.b Packet Pg. 993 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation City of San Bernardino 20-PLHA-15184 Page 3 of 4 EXHIBIT E Permanent Local Housing Allocation (PLHA) Program - Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 Activity 9 – Home Buyer Assistance. The City will utilize PLHA funds to expand the existing homeownership program. Funding Allocation Year 2019 2020 2021 2022 2023 Type of Homeowner Assistance Home Buyer Assistance Home Buyer Assistance Home Buyer Assistance Home Buyer Assistance Home Buyer Assistance Percentage of Funds Allocated for each Activity 10% 15% 15% 15% Area Median Income Level Served 120% 120% 120% 120% 20.b Packet Pg. 994 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation City of San Bernardino 20-PLHA-15184 Page 4 of 4 EXHIBIT E Permanent Local Housing Allocation (PLHA) Program - Grant NOFA Date: 02/26/2020 Approved Date: 10/05/2020 Prep. Date: 11/05/2020 2. Special Terms and Conditions The following Special Conditions are applicable to this Standard Agreement: None. 20.b Packet Pg. 995 Attachment: Attachment 2 - Standard Agreement PLHA (7137 : Agreement with State of California for Permanent Local Housing Allocation Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: Code Amendment - Downtown Advisory Committee (Wards 1, 3) Final Reading Recommendation Accept the final reading and adopt Ordinance MC-1552 of the Mayor and City Council of the City of San Bernardino, California, adopting a Code Amendment to Se ction 2.17.040 related to Appointment-Registered voters requirement-Compensation-Oath, with the amendments identified by the Mayor and City Council motion to approve the ordinance. Background On February 3, 2021, the Mayor and City Council considered the adoption of a Code Amendment to Section 2.17.040 related to the Appointment -Registered voters requirement-Compensations-Oath. Subsequent to City Council discussion, the Mayor and City Council continued the item and directed staff to amend the draft Ordin ance to include that non-resident business professionals in the community are clearly local business and/or commercial property owners. On February 17, 2021, the Mayor and City Council approved the first reading of a Code Amendment to Section 2.17.040 related to the Appointment-Registered voters requirement-Compensations-Oath. Subsequent to Mayor and City Council discussion, Council Member Calvin made a motion, seconded by Council Member Alexander , directing staff to schedule the final reading for March 3, 2021. As part of this motion, Council Member Calvin made an amendment to the ordinance that the appointee be a resident of the City of San Bernardino, or a non-resident business owner with an active license currently operating a business within the Cit y of San Bernardino, and that at no point shall there be more than 25% of the members be made up of non -resident active business owners currently operating in the city. Discussion This item was considered at both the February 3 rd and February 17th Mayor and City Council meetings. Staff requested that the Mayor and City Council consider establishing a Downtown Advisory Committee to assist with the formulation of a Downtown Specific Plan. Staff also recommended that the Mayor and City Council consider allowing non- resident business professionals in the community (i.e., local businesses and commercial 21 Packet Pg. 996 7141 Page 2 property owners) to participate in the advisory committee. Although the Mayor and City Council were supportive of establishing such a committee, some of the Council Members were apprehensive about allowing non-residents to participate on the committee. As such, amendments were added to the ordinance that clarifies that the non-resident members are local businesses with active business licenses within the City, and that no more than 25% of the members be non -resident business owners. 2020-2025 Key Strategic Targets and Goals The establishment of a General Plan Advisory Committee aligns with Key Target No. 4: Economic Growth & Development. Specifically, the establishment of an advisory committee will assist in the development of a comprehensive long-range specific plan facilitating planned growth in the downtown core of the City. Fiscal Impact There is no fiscal impact to the City with the establishment of the Downtown Advisory Committee since the members of the Committee will serve without compensation. Conclusion Accept the final reading and adopt Ordinance MC-1552 of the Mayor and City Council of the City of San Bernardino, California, adopting a Code Amendment to Section 2.17.040 related to Appointment-Registered voters requirement-Compensation-Oath, with the amendments identified by the Mayor and City Council motion to approve the ordinance. Attachments Attachment 1 Ordinance No. MC-1552 Ward: 1 and 3 Synopsis of Previous Council Actions: September 16, 2020 Mayor and City Council authorized the execution of a contract with PlaceWorks for professional planning services to assist the City with the preparation of not only the General Plan, but also the creation of a Downtown Specific Plan and an update to the Development Code. 21 Packet Pg. 997 ORDINANCE NO. MC-1552 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ALLOWING NON-CITY- RESIDENTS WHO HAVE OTHER TIES TO THE CITY TO BE APPOINTED TO A DOWNTOWN ADVISORY COMMITTEE WHEREAS, the Mayor and City Council of the City of San Bernardino (“MCC”) are currently in the process of adopting a Downtown Specific Plan; and WHEREAS, the MCC desires to establish a committee called the Downtown Advisory Committee (“Committee”) in order to provide guidance, assistance, and/or feedback on the process of adopting the Downtown Specific Plan and what to include in it; and WHEREAS, the MCC desires to be able to appoint both City of San Bernardino (“City”) residents and non-residents to the Committee; and WHEREAS, the MCC desires to be able to appoint non-City-residents to the Committee in order to capture and include the expertise of individuals and industries that have ties to and do business in the City but may not be residents of the City, including, but not limited to, the developer community and the commercial real estate community; and WHEREAS, the City Charter Section 601 states that “[m]embers of boards, commissions and committees shall be residents of the City, unless exempted by ordinance or State law”; and WHEREAS, the City is currently limited by Section 2.17.040 of the City Municipal Code to appoint City residents only because it states that “[e]ach member shall be and remain a registered voter within the City and no member shall be an employee of the City”; and WHEREAS, the MCC desires to amend Section 2.17.040 of the City Municipal Code to allow the MCC to, by resolution, appoint non-City-residents to the Committee. NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA DO ORDAIN AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Section 2.17.040 of the City Municipal Code shall be amended to read, in full, as follows (new text in underline): “2.17.040 Appointment-Registered voter requirement-Compensation-Oath Each member of such board, commission or citizen advisory committee, after having been nominated, shall be appointed by at least five affirmative votes of the Mayor and City Council. Each member shall be and remain a registered voter within the City and no member shall be an employee of the City. Notwithstanding the foregoing, the Mayor and City Council may establish 21.a Packet Pg. 998 Attachment: Attachment 1 - Ordinance 2021-1552 (7141 : Code Amendment - Downtown Advisory Committee (Wards 1, 3) Final Reading) Ordinance No. MC-1552 2 a Downtown Advisory Committee by resolution and may permit the appointment of non-City- residents business professionals (i.e., local businesses and commercial property owners) to the committee so long as non-City-residents make up less than twenty-five 25%) of that committee. Members shall serve, without compensation, at the pleasure of the Mayor and City Council. Any member no longer holding the qualifications required for appointment shall cease to serve as a member, and such member’s position shall be deemed vacant. Any vacancy shall be filled and appointment shall be made in the manner herein before set forth as for an original appointment.” SECTION 3. CEQA. The Mayor and City Council find that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. SECTION 4. Severability. If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality 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 Mayor and City Council of the City of San Bernardino hereby declares that it would have adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. SECTION 5. Effective Date. This Ordinance shall take effect thirty (30) days after the date of the adoption. SECTION 6. Notice of Adoption. The City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under Section 36933 of the Government Code of the State of California. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this day of , 2021. John Valdivia, Mayor City of San Bernardino 21.a Packet Pg. 999 Attachment: Attachment 1 - Ordinance 2021-1552 (7141 : Code Amendment - Downtown Advisory Committee (Wards 1, 3) Final Reading) Ordinance No. MC-1552 3 Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 21.a Packet Pg. 1000 Attachment: Attachment 1 - Ordinance 2021-1552 (7141 : Code Amendment - Downtown Advisory Committee (Wards 1, 3) Final Reading) Ordinance No. MC-1552 4 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Ordinance No. MC- , introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the 17th day of February, 2021. Ordinance No. MC-1552 was approved, passed and adopted at the regular meeting held the ____ day of _________, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this day of , 2021. Genoveva Rocha, CMC, City Clerk 21.a Packet Pg. 1001 Attachment: Attachment 1 - Ordinance 2021-1552 (7141 : Code Amendment - Downtown Advisory Committee (Wards 1, 3) Final Reading) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: MOU San Bernardino Promise Neighborhoods (Wards: 1, 4 and 7) Recommendation Adopt Resolution No. 2021-52 of the Mayor and City Council of the City of San Bernardino, California, directing the City Manager to sign and execute a Letter of Support and Memorandum of Understanding to support the Making Hope Happen Foundation prepare a Promise Neighborhoods Program application in Partnership with San Bernardino City Unified School District. Background The Making Hope Happen Foundation (MHHF) supports the educational mission of the San Bernardino City Unified School District (SBCUSD) which has embraced the power of hope as a primary driver of personal motivation and community change. The District adopted its “Making Hope Happen” philosophy based on res earch and guidance by Gallop Senior Scientist, Dr. Shane J. Lopez. Passionate and respected community leaders rallied behind the District’s call for a focus on building hopeful students and families to uplift the City of San Bernardino - a community suffering from economic, social and health challenges that stifle prosperity. Hope allows people to envision a better future, design a path toward that future, and to take purposeful steps toward it. The United States Department of Education has released a grant, Promise Neighborhoods, providing funding to support eligible entities, such as MHHF. The vision of the program is that all children and youth growing up in Promise Neighborhoods have access to great schools and strong systems of family and community support that will prepare them to attain an excellent education and successfully transition to college and a career. The purpose of Promise Neighborhoods is to significantly improve the educational and developmental outcomes of children and youth in most distressed communities, and to transform those communities. Discussion MHHF in partnership with SBCUSD is applying for the grant to develop a continuum of services for all children and youth residing within the San Bernardino Promise Neighborhood (SBPN) footprint area to participate in the full range of cradle -to-career 22 Packet Pg. 1002 7146 Page 2 support that is necessary for them to realize their potential. SBPN will support success for children and youth of all ages living within the attendance boundaries of five SBCUSD elementary schools: Del Rosa Elementary - 4th Ward Hunt Elementary School - 7th Ward E. Neal Roberts Elementary School - 1st Ward Bing Wong Elementary School - 1st Ward Monterey Elementary School - 1st Ward This MOU promotes the continued collaboration of public and private sector organizations to achieve shared goals and outcomes identified in the proposal. 2020-2025 Key Strategic Targets and Goals Authorizing the City Manager to execute the Memorandum of Understanding to support the MHHF prepare a Promise Neighborhoods Program application in Partnership with SBCUSD aligns with Key Target No. 3: Improved Quality of Life by supporting and collaborating with non-profit organizations in dedicating resources to assist children and youth residing in the City’s most impacted neighborhoods. Fiscal Impact No fiscal impact to the City. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, Adopt Resolution No. 2021-52 directing the City Manager to sign and execute the Letter of Support and Memorandum of Understanding to support the Making Hope Happen Foundation prepare a Promise Neighborhoods Program application in Partnership with San Bernardino City Unified School District. Attachments Attachment 1 2021 San Bernardino Promise Neighborhoods MOU Attachment 2 Resolution No. 2021-52 Attachment 3 City of San Bernardino Letter of Support Ward: 1, 4 and 7 Synopsis of Previous Council Actions: N/A 22 Packet Pg. 1003 MEMORANDUM OF UNDERSTANDING SAN BERNARDINO PROMISE NEIGHBORHOODS I. PURPOSE The purpose of this Memorandum of Understanding (MOU) is to provide a mutual understanding of the signatory agencies, organization and governments that are collectively working to: 1) prepare a successful Promise Neighborhoods Program (PN) application in which the Making Hope Happen Foundation (MHHF), a recognized 501c3 nonprofit organization, is the lead applicant in partnership with San Bernardino City Unified School District (SBCUSD); and 2) develop a continuum of services for all children and youth residing within the San Bernardino Promise Neighborhood (SBPN) footprint area to participate in the full range of cradle-to-career supports that are necessary for them to realize their potential. SBPN will support success for children and youth of all ages living within the attendance boundaries of five SBCUSD elementary schools: ● Del Rosa Elementary ● Hunt Elementary School ● E. Neal Roberts Elementary School ● Bing Wong Elementary School ● Monterey Elementary School This MOU promotes the continued collaboration of public and private sector organizations to achieve shared goals and outcomes identified in the proposal, as well as cash match and/or in-kind support. II. AGREEMENT AND TERMS OF UNDERSTANDING a. The signatories hereby agree to support the implementation of the SBPN as described herein and in further detail in the SBPN application being submitted to the federal government on March 5, 2021. b. MHHF will serve as the Lead Agency in coordination with SBCUSD, a high need local education agency (LEA). As Lead Agency, MHHF will execute a SBPN agreement and be responsible to the Department of Education for fulfilling the responsibilities of the SBPN, if awarded. c. MHHF will work with Loma Linda University (LLU) to develop an evaluation plan and track outcomes, periodically reporting to the participating federal agencies, and participating in evaluation activities as requested by federal agencies. d. Partners will be responsible for collectively carrying out the SBPN plan as reflected in 22.a Packet Pg. 1004 Attachment: Attachment 1 - 2021 San Bernardino Promise Neighborhoods MOU (7146 : MOU San Bernardino Promise Neighborhoods (Wards: the grant application and identified on their individual Partner Commitment Signature Page attached to this MOU. Partners include, but are not limited to, the following: ● Making Hope Happen Foundation ● San Bernardino City Unified School District ● Del Rosa Elementary School ● Hunt Elementary School ● Monterey Elementary School ● E. Neal Roberts Elementary School ● Bing Wong Elementary School ● Del Vallejo Middle School ● Curtis Middle School ● Pacific High School ● Indian Springs High School ● Sierra High School ● Loma Linda University ● Growing Inland Achievement ● California State University, San Bernardino ● San Bernardino Valley College ● San Bernardino County ● San Bernardino County Superintendent of Schools ● Reach Out ● Big Brothers Big Sisters Inland Empire ● Blu Educational Foundation ● Young Visionaries Youth Leadership Academy ● Youth Women’s Empowerment ● Akoma Unity Center ● Desert Song Group ● SAC Health System (SACHS) ● Inland Empire Health Plan ● Inland Empire Book Project ● National CORE ● Tomorrow’s Talent e. Vision, Goals, Plan of the San Bernardino Promise Neighborhood ecosystem: 1. Vision: To remove barriers to success for the students and families of the San Bernardino Promise Neighborhood that will include developing a sustainable ecosystem of wraparound supports that encourage individual and community 22.a Packet Pg. 1005 Attachment: Attachment 1 - 2021 San Bernardino Promise Neighborhoods MOU (7146 : MOU San Bernardino Promise Neighborhoods (Wards: achievement in health, wellness, safety, academics, and careers. 2. Goals: align existing resources and partnerships to build and provide equal access to a cradle to career continuum of services that include but are not limited to very early and early childhood, K-12 education; family supports to specifically address food, technological, and medical insecurities; post- secondary educational and career pathways opportunities; workforce readiness, work-based learning, and job experiences; and to shepherd Promise Neighborhood children and young adults through the defined pipeline of partner supplied services as needed for their individual success. 3. Plan: Engage domain experts, partners, and community members to develop and implement a five-year blueprint to achieve lasting support in the core areas of access quality medical care, access to technology, access to academic development, access to post-secondary education, and access to living-wage career opportunities. Partners will leverage specific resources on-demand in accordance with the plan and funding requirements to provide this continuum of care for the next 60 months and beyond. 4. All Partners will leverage ongoing, operational services for SBPN members that align with the mission of the plan and will provide in-kind match. III. COMMITMENTS a. Lead Applicant: MHHF will serve as the program administrator and shall act in representative capacity with participating Federal agencies on behalf of the signatories and assume administrative responsibility for regular interaction with participating Federal agencies. These responsibilities may include organizing and coordinating activities pursuant to the proposed SBPN strategy. a. MHHF will establish and work with the SBPN Leadership Council, which will include residents from the targeted neighborhoods, partner representatives and school site leaders, to ensure alignment and continued support from the various partners. b. Partners agree to serve as the implementation team responsible for collectively carrying out the SBPN plan as reflected in grant application, to participate in meetings to facilitate communication and coordination of implementation, and to share expertise and experiences on the development of programs, as well as pertinent resources, tools and strategies. 22.a Packet Pg. 1006 Attachment: Attachment 1 - 2021 San Bernardino Promise Neighborhoods MOU (7146 : MOU San Bernardino Promise Neighborhoods (Wards: c. Partners agree to collect, analyze and submit individual-level and aggregate data to the Lead Agency, MHHF, and its independent evaluation partner Loma Linda University, authorizing data sharing agreements as needed for the purpose of tracking outcomes and reporting to the funding agency as required. d. Partners will leverage applicable ongoing, operational services for SBPN families that align with the goals of the SBPN plan and will provide in-kind match to the greatest extent possible. e. If this application is selected for a PN award, all signatories agree to develop and execute a more detailed Final MOU that will govern the planning and implementation of the SBPN program defining accountability, data sharing, improvement processes and acknowledgement of all federally required assurances. If this application is not selected for the PN award, the signatories to this MOU, however, agree to meet, discuss and conclude how to proceed with the effort to achieve the goals of the overall SBPN target area. IV. TERM & TERMINATION a. This MOU shall be in effect until both of the following have occurred: 1) The SBPN proposal submitted on or before Marcy 5, 2021 is awarded a grant by the US DOE that is accepted by MHHF; and 2) A post-award agreement has been negotiated between and accepted by the partner and MHHF for the purpose of implementing the SBPN program. b. Any partner may terminate their participation in this MOU at any time prior to the acceptance of a PN award by MHHF for the SBPN program described in the proposal submitted on or before March 5, 2021. V. AUTHORITY The signatories warrant that they have the authority to provide such approval for the partner and to obligate the partner to perform under this MOU. <<SIGNATURE/COMMITMENT PAGE FOLLOWS>> 22.a Packet Pg. 1007 Attachment: Attachment 1 - 2021 San Bernardino Promise Neighborhoods MOU (7146 : MOU San Bernardino Promise Neighborhoods (Wards: PARTNER COMMITMENT SIGNATURE PAGE By signing this page, I confirm understanding and agree to commit to the terms and provisions made within the Memorandum of Understanding for the Promise Neighborhoods grant program. PARTNER AGENCY: City of San Bernardino PARTNER TYPE: Lead Agency Local Education Agency Promise Neighborhood School Site Community Partner PARTNER SPECIFIC COMMITMENTS TO GRANT PROJECT (match cannot be supported by federal funds and cannot include expenses that are disallowed by the NOFA): CASH MATCH IN KIND MATCH TOTAL $ $ $ PIPELINE SERVICE COMMITMENTS (this is the work that your agency will be doing if this grant is funded): Description of Service Grant Funded Partner Funded 1 Support for housing stabilization efforts (Eviction Prevention; Residential Rehabilitation Grants, etc) to assist families in the targeted neighborhoods X 2 Coordinated services that enhance safety in the targeted neighborhood such as community policing, code enforcement, and infrastructure improvements based on available funding, and community input through established planning processes. X 3 Participate in Promise Neighborhoods Leadership meetings contributing expertise to the full continuum of supports. X Authorized Signature: Date: Print Name: Title: Email Address: Mailing Address: City, State, Zip: Phone: 22.a Packet Pg. 1008 Attachment: Attachment 1 - 2021 San Bernardino Promise Neighborhoods MOU (7146 : MOU San Bernardino Promise Neighborhoods (Wards: 22.b Packet Pg. 1009 Attachment: Attachment 3 - City of San Bernardino Letter of Support (7146 : MOU San Bernardino Promise Neighborhoods (Wards: 1, 4 and 7)) 22.b Packet Pg. 1010 Attachment: Attachment 3 - City of San Bernardino Letter of Support (7146 : MOU San Bernardino Promise Neighborhoods (Wards: 1, 4 and 7)) RESOLUTION NO. 2021-52 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING TO SUPPORT THE MAKING HOPE HAPPEN FOUNDATION TO PREPARE A PROMISE NEIGHBORHOODS PROGRAM APPLICATION IN PARTNERSHIP WITH SAN BERNARDINO CITY UNIFIED SCHOOL DISTRICT WHEREAS, the United States Department of Education has released a grant, Promise Neighborhoods, providing funding to support eligible entities, such as Making Hope Happen Foundation; and WHEREAS, in order to take advantage of the program, the Making Hope Happen Foundation in partnership with San Bernardino City Unified School District is applying for the grant to develop a continuum of services for all children and youth residing within the San Bernardino Promise Neighborhood (SBPN) footprint area to participate in the full range of cradle-to-career support that is necessary for them to realize their potential; and WHEREAS, San Bernardino City Unified School District has requested that the City of San Bernardino support the grant application by signing a Letter of Support and executing a Memorandum of Understanding that will accompany the grant application; and WHEREAS, the City Council wishes to support the San Bernardino City Unified School District and the Making Hope Happen Foundation. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. the City Manager is hereby authorized to sign the Letter of Support and execute the Memorandum of Understanding on behalf of the City; copies of which are attached to the accompanying staff report as Attachments 1 and 3. SECTION 3. 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. 22.c Packet Pg. 1011 Attachment: Attachment 2 - Resolution 2021-52 CED.Promise Neighborhoods Grant MOU [Revision 1] (7146 : MOU San Bernardino Promise Resolution No. 2021-52 SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 5. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________, 2021. John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, City Clerk Approved as to form: _________________________________ Sonia Carvalho, City Attorney 22.c Packet Pg. 1012 Attachment: Attachment 2 - Resolution 2021-52 CED.Promise Neighborhoods Grant MOU [Revision 1] (7146 : MOU San Bernardino Promise Resolution No. 2021-52 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-52, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 22.c Packet Pg. 1013 Attachment: Attachment 2 - Resolution 2021-52 CED.Promise Neighborhoods Grant MOU [Revision 1] (7146 : MOU San Bernardino Promise Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: Emergency Rental Assistance Program Committee (All Wards) Recommendation Adopt Resolution No. 2021-53 of the Mayor and City Council of the City of San Bernardino, California, establishing the Emergency Rental Assistance Program Committee. Background On September 16, 2020, the Mayor and City Council approved a Substantial Amendment to the FY 2020-201 Action Plan that included $1,060,000 in CDBG-CV funding for a local eviction prevention program. The program was launched in October 2020, and is administered by the Housing Authority of the County of San Bernardino. On December 27, 2020, President Biden signed into law the Consolidated Appropriations Act of 2021. The legislation includes $25 billion in emergency rental assistance to assist households that are unable to pay rent or utilities, due to impacts of the COVID-19 pandemic. Tribal communities, U.S. territories, states and local governments with populations over 200,000 are eligible to receive funding. The City of San Bernardino has received an allocation of $6.4 million from the United States Treasury (U.S. Treasury) for the implementation of an Emergency Rental Assistance Program (ERAP). The ERAP program allows for the payment of rental arrears, utility arrears, and up to three months of prospective rent. The City is one of only two jurisdictions in the County of San Bernardino to receive its own allocation, the other being the City of Fontana. The County of San Bernardino received an allocation of $52 million and the State of California received $1.5 billion. On February 11, 2021, staff presented an item on emergency rental assistance program funding options for Mayor and City Council consideration. The discussion included the funding being provided by the U.S. Treasury Department a s part of the ERAP program and the State of California administered Emergency Rental Assistance Program options. Subsequent to Mayor and City Council discussion, the Council opted for the City to administer the U.S. Treasury Allocation itself (i.e., Optio n C) and directed staff to 23 Packet Pg. 1014 7154 Page 2 bring back an item to establish a committee made up of two staff members and three City Council members including Councilmember Ben Reynoso serving as the committee chair and Mayor Pro-Tem Sandra Ibarra and Councilmember Kimberly Calvin serving as standing members of the committee. Discussion The item before the Mayor and City Council is a request to establish an Emergency Rental Assistance Program Committee. The City of San Bernardino is one of two cities in San Bernardino that have received Federal Treasury funds to establish an ERAP program. The City has received its allocation of $6.4 million to establish this program. At the February 11, 2021, Mayor and City Council Meeting, it was determined that it was in the best interest of the Community that the Council be involved in the vetting of the Request for Proposals and the oversight of the Program as it proceeds. The proposed structure of the committee is as follows: Committee would be composed of three members of the City Council and two City personnel; Committee would serve in an advisory capacity to the Council; Committee would participate in the selection of a non -profit company(ies) to manage the Emergency Rental Assistance Program for the City; Committee would report back to the City Council at every third Council meeting with the status of the disbursement of funds; and Committee would automatically dissolve once all of the funds have been disbursed and/or the balance of the funds is returned to the U.S. T reasury Department. The Committee will be subject to the Brown Act. 2020-2025 Key Strategic Targets and Goals The creation of an Emergency Rental Assistance Program Committee aligns with Key Target No. 1: Financial Stability. The Committee will participate in the candidate selection of the RFP ensuring that the selected candidate has the capacity and internal control measures to manage the Federal Treasure funds of the City. Fiscal Impact Staffing the committee will involve already-budgeted staff costs from a range of departments. Any unbudgeted costs determined necessary to complete the work of the Committee would be brought back to the full Council for approval. Conclusion It is recommended that the Mayor and City Council of the City of San Bern ardino, California, adopt Resolution No. 2021-53, establishing the Emergency Rental Assistance Program Committee. Attachments Attachment 1 Resolution No. 2021-53 23 Packet Pg. 1015 7154 Page 3 Ward: All Synopsis of Previous Council Action: February 11, 2021 Mayor and City Council directed staff to create an Emergency Rental Assistance Program Committee. 23 Packet Pg. 1016 RESOLUTION NO. 2021-53 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING THE EMERGENCY RENTAL ASSISTANCE PROGRAM COMMITTEE WHEREAS, following the City Council direction at the February 11, 2021 meeting, staff is proceeding with the creation of an Emergency Rental Assistance Program Committee to assist with oversight of the Federally funded Emergency Rental Assistance Program (the “Program”); and WHEREAS, in order to facilitate the selection of a non-profit consultant(s) to assist the City with the Program, the City Council wishes establish a Committee made up of Council members and City staff to oversee the implementation of the Program; and WHEREAS, the Committee is charged with the oversight of the Program and reporting back to the full Council regarding the progress of the distribution of federal funds pursuant to the Program guidelines; and WHEREAS, in order to better oversee the use of the federal funds, the City Council wishes to establish a committee to assist Staff with the oversight of the Program and make reports back to the full City Council. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Establishment of an Emergency Rental Assistance Program Committee. The City Council hereby establishes the Emergency Rental Assistance Program Committee (“Committee”). The Committee shall be structured as follows: A. Composition. The Committee shall be solely comprised of two City employees, to be selected by the City Manager, and three members of the City Council. The three Council members appointed are Mayor Pro Tem Ibarra, Council Member Reynoso, and Council Member Calvin. Council Member Reynoso shall serve as Chair of the Committee. B. Jurisdiction. The Committee shall serve in an advisory capacity to the City Council. The Committee shall assist City staff with the selection of a non-profit consultant(s), the oversight of the program and the reporting to the full City Council. C. Report to Council. The Committee shall report on its activities and provide a summary to the full City Council at every third regularly schedule City Council meeting. The Committee shall automatically dissolve once all of the funds have been disbursed and/or the balance of the funds is returned to the U.S. Treasury Department. 23.a Packet Pg. 1017 Attachment: Attachment 1 - Resolution 2021-53 CED.Emergency Rental Assistance Program [Revision 1] (7154 : Emergency Rental Assistance Resolution No. 2021-53 D. Staffing. The City Manager shall provide staff support to the Committee as necessary to assist with the Committee meetings and reporting back to all of the Council. E. Meetings. The Committee shall meet every two weeks until the non-profit consultant(s) has been retained, and then every three weeks so that the Committee can prepare the report to update all of the Council. Meetings shall be held in accordance with the Brown Act. SECTION 3. The City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 5. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 3rd day of March, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 23.a Packet Pg. 1018 Attachment: Attachment 1 - Resolution 2021-53 CED.Emergency Rental Assistance Program [Revision 1] (7154 : Emergency Rental Assistance Resolution No. 2021-53 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-53, adopted at a special meeting held on the 3rd day of March, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 23.a Packet Pg. 1019 Attachment: Attachment 1 - Resolution 2021-53 CED.Emergency Rental Assistance Program [Revision 1] (7154 : Emergency Rental Assistance Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Barbara Whitehorn, Director of Finance Subject: Investment Portfolio Report for January 2021 (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept and file the Monthly Investment Portfolio Report for January 2021. Background The City’s Statement of Investment Policy requires that a monthly Investment Portfolio Report be prepared and submitted to the Mayor and City Council. The Director of Finance will prepare, review, and present the City’s Investment Portfolio Report and confirm that the portfolio is in compliance with the City’s Investment Policy. Discussion The Investment Portfolio Report provides a synopsis of investment activity for the City’s investment portfolio for the month ended January 31, 2021. The City’s Investment Portfolio is in full compliance with the City’s current Investment Policy and California Government Code Section 53601, and there is sufficient cash flow from a combination of liquid and maturing securities, bank deposits, and income to meet the City’s expenditure requirements. 2020-2025 Key Strategic Targets and Goals The acceptance and filing of the attached Investment Portfolio Report aligns with Key Target No. 1: Financial Stability by implementing, maintaining and updating a fiscal accountability plan. Fiscal Impact There is no fiscal impact associated with receiving and filing the monthly investment report. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept and file the Monthly Investment Portfolio Report for January 2021. 24 Packet Pg. 1020 7124 Page 2 Attachments Attachment 1 Investment Portfolio Management Summary Report Ward: All Synopsis of Previous Council Actions: N/A 24 Packet Pg. 1021 24.aPacket Pg. 1022Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7124 : Investment YTM 360 Page 1 Par Value Book Value Maturity Date Stated RateMarket Value January 31, 2021 Portfolio Details - Investments Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date State Local Agency Investment Fund 0.452LOCAL AGENCY INVESTMENT FUND10001 55,059,921.94 55,059,921.94 0.45855,059,921.94SYS 1 55,059,921.9455,059,921.9455,059,921.9442,328,530.25Subtotal and Average 0.452 1 Managed Pool Accounts 0.365CALTRUST GOVT INVESTMENT FUND20008 1,780.69 1,780.69 0.3701,780.6920008 1 1,780.691,780.691,780.691,781.77Subtotal and Average 0.365 1 Corporate Notes 1.908AMERICAN HONDA FINANCE CORP30559 1,000,000.00 1,000,341.25 05/10/20231.95001/10/2020 1,035,780.00 A02665WDH1 828 1.732APPLE INC30554 1,000,000.00 999,116.25 09/11/20221.70012/10/2019 1,023,110.00 Aaa037833DL1 587 1.800APPLE INC30561 1,000,000.00 999,134.37 09/11/20241.80001/24/2020 1,048,880.00 Aa037833DM9 1,318 2.152BANK OF AMERICA CORPORATION30549 1,000,000.00 1,000,000.00 10/30/20222.10010/30/2019 1,000,540.00 Aa06048WD72 636 0.842BANK OF AMERICA CORPORATION30603 2,000,000.00 1,995,016.97 12/23/20250.65001/25/2021 1,999,280.00 Aa06048WK66 1,786 1.904BANK OF NEW YORK MELLON CORP30547C 2,000,000.00 2,013,128.26 08/16/20232.20010/16/2019 2,088,420.00 Aaa06406FAD5 926 1.180JOHNSON & JOHNSON30570 1,000,000.00 1,000,374.58 03/01/20211.65003/03/2020 1,001,060.00 Aaa478160BS2 28 2.268J.P. MORGAN CHASE & CO30551 1,000,000.00 1,000,000.00 12/23/20242.30012/23/2019 1,006,890.00 Aaa48128GN97 1,421 1.036J.P. MORGAN CHASE & CO30582 1,000,000.00 1,000,000.00 06/23/20251.05006/23/2020 993,860.00 Aaa48128GU40 1,603 0.789J.P. MORGAN CHASE & CO30595 1,000,000.00 1,000,000.00 08/18/20250.80008/18/2020 987,680.00 Aaa48128GV56 1,659 1.731CHARLES SCHWAB CORP30563 1,064,000.00 1,082,329.96 01/25/20232.65001/27/2020 1,111,177.76 Aa808513AT2 723 2.096TOYOTA MOTOR CREDIT CORP30548 1,000,000.00 1,000,000.00 10/22/20242.12510/22/2019 1,003,810.00 Aaa89236TGN9 1,359 14,089,441.6414,300,487.7614,064,000.0012,545,622.90Subtotal and Average 1.586 1,111 Federal Agency Issues - Coupon 1.567FEDERAL FARM CREDIT BANK30555 2,000,000.00 2,008,853.33 12/13/20212.11012/31/2019 2,034,220.00 Aaa3133EH2T9 315 1.612FEDERAL FARM CREDIT BANK30564 1,000,000.00 999,324.37 02/10/20231.60002/11/2020 1,000,380.00 Aaa3133ELMD3 739 0.572FEDERAL FARM CREDIT BANK30573 1,000,000.00 1,000,000.00 06/03/20240.58006/03/2020 1,000,720.00 Aaa3133ELE67 1,218 0.278FEDERAL FARM CREDIT BANK30596 1,000,000.00 999,687.59 10/05/20230.27010/05/2020 1,000,280.00 Aaa3133EMBQ4 976 0.158FEDERAL FARM CREDIT BANK30597 1,000,000.00 1,000,000.00 10/13/20220.16010/13/2020 1,000,120.00 Aaa3133EMCH3 619 0.138FEDERAL FARM CREDIT BANK30598 1,000,000.00 1,000,000.00 04/08/20220.14010/08/2020 1,000,000.00 Aaa3133EMCJ9 431 1.913FEDERAL HOME LOAN BANK30523 1,000,000.00 999,451.33 11/29/20211.87501/19/2017 1,014,730.00 Aaa3130AABG2 301 1.926FEDERAL HOME LOAN BANK30528 1,000,000.00 999,389.79 11/29/20211.87502/14/2017 1,014,730.00 Aaa3130AABG2 301 1.672FEDERAL HOME LOAN BANK30534 1,000,000.00 1,000,096.62 04/07/20211.75006/14/2017 1,003,030.00 Aaa3130AB5A0 65 1.687FEDERAL HOME LOAN BANK30535 1,000,000.00 1,000,573.13 06/11/20211.87506/22/2017 1,006,340.00 Aaa313379RB7 130 1.726FEDERAL HOME LOAN BANK30565 2,000,000.00 2,000,000.00 02/12/20251.75002/12/2020 2,000,640.00 Aaa3130AJ5F2 1,472 1.529FEDERAL HOME LOAN BANK30566 1,000,000.00 1,000,000.00 03/25/20241.55003/25/2020 1,001,430.00 Aaa3130AJAX7 1,148 1.341FEDERAL HOME LOAN MORTGAGE CRP30518 1,000,000.00 998,796.09 08/12/20211.12511/07/2016 1,005,500.00 Aaa3137EAEC9 192 Portfolio CITY AP Run Date: 02/17/2021 - 14:38 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.3b 24.a Packet Pg. 1023 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7124 : Investment YTM 360 Page 2 Par Value Book Value Maturity Date Stated RateMarket Value January 31, 2021 Portfolio Details - Investments Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date Federal Agency Issues - Coupon 1.978FEDERAL HOME LOAN MORTGAGE CRP30525C 425,000.00 424,979.00 01/26/20222.00001/30/2017 432,977.25 Aaa3134GAU44 359 2.096FEDERAL HOME LOAN MORTGAGE CRP30529C 1,000,000.00 1,000,000.00 02/28/20222.12502/28/2017 1,021,790.00 Aaa3134GA5T7 392 1.973FEDERAL HOME LOAN MORTGAGE CRP30530C 1,000,000.00 1,000,000.00 09/16/20212.00003/16/2017 1,011,910.00 Aaa3134GA5C4 227 1.933FEDERAL HOME LOAN MORTGAGE CRP30531 1,000,000.00 999,603.48 07/26/20211.87503/06/2017 1,008,800.00 Aaa3134G9M20 175 2.042FEDERAL HOME LOAN MORTGAGE CRP30537C 1,000,000.00 999,170.81 04/26/20222.00011/06/2017 1,023,720.00 Aaa3134GBP55 449 0.444FEDERAL HOME LOAN MORTGAGE CRP30576 1,000,000.00 1,000,000.00 06/01/20230.45006/01/2020 1,000,040.00 Aaa3134GVB72 850 0.414FEDERAL HOME LOAN MORTGAGE CRP30577 1,000,000.00 1,000,000.00 03/17/20230.42006/17/2020 1,000,220.00 Aaa3134GVQ50 774 0.444FEDERAL HOME LOAN MORTGAGE CRP30578 1,000,000.00 1,000,000.00 12/29/20230.45006/29/2020 1,000,050.00 Aaa3134GVS82 1,061 0.641FEDERAL HOME LOAN MORTGAGE CRP30581 1,000,000.00 1,000,000.00 06/30/20250.65006/30/2020 996,420.00 Aaa3134GVT99 1,610 0.493FEDERAL HOME LOAN MORTGAGE CRP30583 1,000,000.00 1,000,000.00 03/28/20240.50006/29/2020 997,590.00 Aaa3134GV3T3 1,151 0.444FEDERAL HOME LOAN MORTGAGE CRP30584 1,000,000.00 1,000,000.00 07/22/20240.45007/22/2020 999,130.00 Aaa3134GWCB0 1,267 0.395FEDERAL HOME LOAN MORTGAGE CRP30586 1,000,000.00 1,000,000.00 10/23/20230.40007/23/2020 1,001,300.00 Aaa3134GV6D5 994 0.493FEDERAL HOME LOAN MORTGAGE CRP30587 1,000,000.00 1,000,000.00 10/30/20240.50007/30/2020 998,720.00 Aaa3134GWDX1 1,367 0.247FEDERAL HOME LOAN MORTGAGE CRP30590 1,000,000.00 1,000,000.00 11/03/20220.25008/03/2020 1,000,150.00 Aaa3134GWHD1 640 0.321FEDERAL HOME LOAN MORTGAGE CRP30591 1,000,000.00 1,000,000.00 02/03/20230.32508/03/2020 1,000,000.00 Aaa3134GWGL4 732 0.360FEDERAL HOME LOAN MORTGAGE CRP30592 1,000,000.00 1,000,260.03 07/28/20230.37507/30/2020 1,000,070.00 Aaa3134GWDL7 907 0.335FEDERAL HOME LOAN MORTGAGE CRP30593 1,000,000.00 1,000,000.00 04/21/20230.34007/30/2020 1,000,250.00 Aaa3134GV7M4 809 0.404FEDERAL HOME LOAN MORTGAGE CRP30594 1,000,000.00 1,000,000.00 05/13/20240.41008/13/2020 997,570.00 Aaa3134GWHR0 1,197 0.247FEDERAL HOME LOAN MORTGAGE CRP30599 1,000,000.00 1,000,000.00 07/07/20230.25010/26/2020 1,000,060.00 Aaa3134GWVF0 886 0.263FEDERAL HOME LOAN MORTGAGE CRP30601 1,000,000.00 1,000,000.00 11/02/20230.32011/02/2020 1,000,610.00 Aaa3134GW6E1 1,004 1.332FEDERAL NATIONAL MORTGAGE ASSO30512C 1,000,000.00 1,000,000.00 03/29/20211.35009/29/2016 1,002,030.00 Aaa3136G4BD4 56 1.411FEDERAL NATIONAL MORTGAGE ASSO30513 1,000,000.00 999,606.84 10/07/20211.37510/13/2016 1,008,790.00 Aaa3135GOQ89 248 1.401FEDERAL NATIONAL MORTGAGE ASSO30515 1,000,000.00 999,702.20 10/07/20211.37510/31/2016 1,008,790.00 Aaa3135G0Q89 248 1.341FEDERAL NATIONAL MORTGAGE ASSO30517 1,000,000.00 1,000,073.13 10/07/20211.37511/03/2016 1,008,790.00 Aaa3135GOQ89 248 1.716FEDERAL NATIONAL MORTGAGE ASSO30519 1,000,000.00 997,618.04 10/07/20211.37511/18/2016 1,008,790.00 Aaa3135G0Q89 248 1.946FEDERAL NATIONAL MORTGAGE ASSO30524 1,000,000.00 1,000,236.16 01/05/20222.00001/23/2017 1,017,640.00 Aaa3135G0S38 338 1.994FEDERAL NATIONAL MORTGAGE ASSO30526 1,000,000.00 999,811.62 01/05/20222.00002/02/2017 1,017,640.00 Aaa3135G0S38 338 2.014FEDERAL NATIONAL MORTGAGE ASSO30532 1,000,000.00 999,629.23 01/05/20222.00003/02/2017 1,017,640.00 Aaa3135G0S38 338 2.140FEDERAL NATIONAL MORTGAGE ASSO30533C 1,000,000.00 1,000,000.00 03/29/20222.17003/29/2017 1,024,360.00 Aaa3136G4MQ3 421 0.513FEDERAL NATIONAL MORTGAGE ASSO30580 1,000,000.00 1,000,000.00 12/22/20230.52006/22/2020 1,000,230.00 Aaa3136G4XE8 1,054 0.592FEDERAL NATIONAL MORTGAGE ASSO30585 1,000,000.00 1,000,000.00 07/22/20250.60007/22/2020 993,880.00 Aaa3136G4ZF3 1,632 0.641FEDERAL NATIONAL MORTGAGE ASSO30588 1,000,000.00 1,000,000.00 08/14/20250.65008/14/2020 997,370.00 Aaa3136G4C43 1,655 0.335FEDERAL NATIONAL MORTGAGE ASSO30589 1,000,000.00 1,000,000.00 08/18/20230.34008/18/2020 1,002,180.00 Aaa3136G4F99 928 0.533FEDERAL NATIONAL MORTGAGE ASSO30600 1,000,000.00 1,000,000.00 10/27/20250.54010/27/2020 997,700.00 Aaa3136G45C3 1,729 0.542FEDERAL NATIONAL MORTGAGE ASSO30602 1,000,000.00 1,000,000.00 11/04/20250.55011/04/2020 998,230.00 Aaa3135GA2N0 1,737 49,426,862.7949,677,557.2549,425,000.0050,330,169.22Subtotal and Average 1.066 760 Portfolio CITY AP Run Date: 02/17/2021 - 14:38 PM (PRF_PM2) 7.3.0 24.a Packet Pg. 1024 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7124 : Investment YTM 360 Page 3 Par Value Book Value Maturity Date Stated RateMarket Value January 31, 2021 Portfolio Details - Investments Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date Supranationals 1,745,596.34Subtotal and Average Treasury Securities - Coupon 1.919U.S. TREASURY40001C 1,000,000.00 1,000,298.87 08/31/20212.00002/21/2017 1,010,860.00 Aaa912828D72 211 2.348U.S. TREASURY40002 1,000,000.00 999,386.72 07/31/20212.25002/12/2018 1,010,700.00 Aaa912828WY2 180 2.510U.S. TREASURY40003 1,000,000.00 998,609.02 07/31/20212.25006/04/2018 1,010,700.00 Aaa912828WY2 180 2.584U.S. TREASURY40004 1,000,000.00 999,728.73 03/15/20212.37506/25/2018 1,002,650.00 Aaa9128284B3 42 3,998,023.344,034,910.004,000,000.003,997,780.69Subtotal and Average 2.340 153 Certificates of Deposit 1.7261ST TECHNOLOGY FEDERAL CREDIT80034 248,000.00 248,000.00 06/30/20211.75006/30/2016 249,631.9033715LAD2 149 2.022AMERICAN EXPRESS CENTURION BK80038 247,000.00 247,000.00 12/01/20212.05012/01/2016 250,814.7702587DM70 303 2.170BMW BANK80041 247,000.00 247,000.00 02/24/20222.20002/24/2017 252,054.7705580AGK4 388 2.614CAPITAL ONE NATIONAL ASSOC80054 247,000.00 247,000.00 05/30/20242.65005/30/2019 266,386.3814042RLW9 1,214 2.860CITI BANK SALT LAKE CITY UTAH80043 246,000.00 246,000.00 05/24/20212.90005/23/2018 248,159.3817312QM22 112 2.712COMENITY CAPITAL BANK80052 249,000.00 249,000.00 04/15/20242.75004/29/2019 268,912.4920033AU61 1,169 2.416EAGLE BANK80053 249,000.00 249,000.00 05/24/20222.45005/24/2019 256,186.7527002YEP7 477 3.107GOLDMAN SACHS GROUP INC.80046 245,000.00 245,000.00 01/17/20233.15001/16/2019 259,378.7338148P4B0 715 2.910MEDALLION BANK80044 249,000.00 249,000.00 06/04/20212.95006/04/2018 251,421.8758404DCA7 123 2.860MORGAN STANLEY BANK80042 246,000.00 246,000.00 05/10/20212.90005/10/2018 247,896.4961747MX63 98 3.008MORGAN STANLEY PRIVATE BANK80048 246,000.00 246,000.00 01/31/20243.05001/31/2019 266,731.8661760AVF3 1,094 2.564MORGAN STANLEY PRIVATE BANK80055 247,000.00 247,000.00 06/13/20242.60006/13/2019 266,285.0961760AG52 1,228 2.712NORTHWESTERN BANK80049 245,000.00 245,000.00 02/13/20232.75002/13/2019 257,958.22668015AL4 742 2.712OXFORD BANK & TRUST80051 245,000.00 245,000.00 06/28/20222.75002/28/2019 253,670.7469140WAS4 512 2.022STEARNS BANK80039 249,000.00 249,000.00 01/13/20222.05001/13/2017 253,288.22857894SK6 346 1.677SYNCHRONY BANK80036 247,000.00 247,000.00 10/21/20211.70010/21/2016 249,741.9587165FNC4 262 2.959TIAA FSB80050 245,000.00 245,000.00 02/22/20243.00002/22/2019 265,760.2587270LBU6 1,116 2.959UBS FINANCE COMMERCIAL PAPER80045 249,000.00 249,000.00 06/14/20213.00006/13/2018 251,661.0390348JCU2 133 2.022WASHINGTON FIRST BK RESTON80040 247,000.00 247,000.00 02/23/20222.05002/23/2017 251,641.51940727AH3 387 3.156WELLS FARGO BK NA80047 500,000.00 500,000.00 01/18/20243.20001/18/2019 544,164.05949763WU6 1,081 1.726WELLS FARGO BANK80033 249,000.00 249,000.00 06/17/20211.75006/17/2016 250,518.429497485W3 136 5,442,000.005,662,264.875,442,000.005,442,000.00Subtotal and Average 2.548 585 Money Market Funds 0.010WELLS FARGO GOVT MONEY MARKET20002 0.00 0.00 0.0100.00SYS20002 1 Portfolio CITY AP Run Date: 02/17/2021 - 14:38 PM (PRF_PM2) 7.3.0 24.a Packet Pg. 1025 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7124 : Investment YTM 360 Page 4 Par Value Book Value Stated RateMarket Value January 31, 2021 Portfolio Details - Investments Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date 0.000.000.00603,644.83Subtotal and Average 0.000 0 116,995,126.01 127,992,702.63 0.962 446128,736,922.51 128,018,030.40Total and Average Portfolio CITY AP Run Date: 02/17/2021 - 14:38 PM (PRF_PM2) 7.3.0 24.a Packet Pg. 1026 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7124 : Investment YTM 360 Page 5 Par Value Book Value Stated RateMarket Value January 31, 2021 Portfolio Details - Cash Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date 0.00 116,995,126.01 127,992,702.63 0.962 446 0 4,601.67 4,601.67 4,601.67 4,601.67 Subtotal Accrued Interest at PurchaseAverage Balance 128,741,524.18 128,022,632.07Total Cash and Investments Portfolio CITY AP Run Date: 02/17/2021 - 14:38 PM (PRF_PM2) 7.3.0 24.a Packet Pg. 1027 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7124 : Investment Page 1 Stated Rate Transaction Date January 1, 2021 through January 31, 2021 Activity By Type Balance Portfolio Management CITY OF SAN BERNARDINO CUSIP Investment #Issuer Purchases or Deposits Redemptions or Withdrawals State Local Agency Investment Fund (Monthly Summary) LOCAL AGENCY INVESTMENT FUND10001 19,048,081.590.458 0.00SYS 0.00 55,059,921.94Subtotal19,048,081.59 Managed Pool Accounts (Monthly Summary) CALTRUST GOVT INVESTMENT FUND20008 0.570.370 1.7720008 1.77 1,780.69Subtotal0.57 Corporate Notes BANK OF AMERICA CORPORATION30603 1,995,000.000.650 01/25/2021 0.0006048WK66 0.00 14,089,441.64Subtotal1,995,000.00 Federal Agency Issues - Coupon FEDERAL HOME LOAN BANK30540C 0.002.875 01/29/2021 1,000,000.003130AFRQ2 1,000,000.00 49,426,862.79Subtotal0.00 Supranationals INTL BK RECON & DEVELOPMENT30562 0.001.750 01/28/2021 1,000,000.0045905U5U4 INTL BK RECON & DEVELOPMENT30569 0.002.050 01/28/2021 1,004,166.13459058HV8 2,004,166.13 0.00Subtotal0.00 Treasury Securities - Coupon 3,998,023.34Subtotal Certificates of Deposit 5,442,000.00Subtotal Money Market Funds (Monthly Summary) WELLS FARGO GOVT MONEY MARKET20002 7,833.050.010 3,756,225.07SYS20002 3,756,225.07 0.00Subtotal7,833.05 128,018,030.40Total6,760,392.9721,050,915.21 Portfolio CITY AP Run Date: 02/17/2021 - 14:38 PM (PRF_PM3) 7.3.0 Report Ver. 7.3.3b 24.a Packet Pg. 1028 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7124 : Investment Page 1 January 2020 through January 2021 Activity Summary Month Portfolio Management End Year Number of Securities Total Invested 360 Equivalent 365 Equivalent Managed Pool Rate Average Term Average Days to Maturity CITY OF SAN BERNARDINO Number of Investments Purchased Number of Investments Redeemed Yield to Maturity 116,512,135.33January202085 826 4561.903 1.929 1.967 7 0 123,735,583.62February202088 831 4671.870 1.896 1.912 3 0 117,383,961.74March202092 898 5271.760 1.784 1.730 6 2 116,849,030.14April202084 799 4311.720 1.744 1.648 0 8 138,861,091.34May202081 650 3401.523 1.544 1.363 0 3 136,635,240.56June202083 712 4051.432 1.452 1.217 11 9 114,967,808.06July202087 905 5251.310 1.328 0.920 6 2 109,430,118.52August202091 994 5871.247 1.265 0.860 6 2 103,596,103.88September202086 986 5731.214 1.231 0.685 0 5 106,022,285.66October202090 1,002 5871.162 1.178 0.620 5 1 110,769,958.19November202092 986 5681.118 1.133 0.560 2 0 113,728,761.06December202090 932 5191.075 1.090 0.540 0 2 128,018,030.40January202188 819 4460.962 0.975 0.458 1 3 Average 118,193,085.27 1.407%1.427%1.114 4 3 872 49587 Portfolio CITY AP Run Date: 02/17/2021 - 14:38 PM (PRF_PM4) 7.3.0 Report Ver. 7.3.3b 24.a Packet Pg. 1029 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7124 : Investment Page 1 January 31, 2021 Interest Earnings Summary Month EndingJanuary 31 Fiscal Year To Date Portfolio Management CITY OF SAN BERNARDINO CD/Coupon/Discount Investments: 140,288.28Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 229,602.75 ( 281,522.70) 711,848.55 222,415.25 ( 289,879.23) Less Accrued Interest at Purchase During Period ( 0.00)( 0.00) Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods 88,368.33 -1,252.90 -4,166.13 644,384.57 -8,643.55 -3,716.40 82,949.30 632,024.62 Pass Through Securities: 0.00Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 0.00 ( 0.00) 0.00 0.00 ( 0.00) Less Accrued Interest at Purchase During Period ( 0.00)( 0.00) Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cash/Checking Accounts: 48,087.28Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 450,536.78 ( 479,328.78) 329,311.64 450,536.78 ( 630,233.71) Interest Earned during Period 19,295.28 149,614.71 Total Interest Earned during Period Total Adjustments from Premiums and Discounts Total Capital Gains or Losses Total Earnings during Period 107,663.61 -1,252.90 -4,166.13 793,999.28 -8,643.55 -3,716.40 102,244.58 781,639.33 Portfolio CITY AP Run Date: 02/17/2021 - 14:38 PM (PRF_PM6) 7.3.0 Report Ver. 7.3.3b 24.a Packet Pg. 1030 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7124 : Investment Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Barbara Whitehorn, Director of Finance Subject: Approval of Commercial and Payroll Disbursements (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for January and February 2021. Background Completed commercial and payroll disbursement registers are submitted to the Mayor and City Council for approval. This happens on a regular basis, typically every meeting for the most recently completed disbursement registers. The detailed warrant registers are available on the City Website and are updated weekly by the Finance Department. The registers may be accessed by copying the following link into an internet browser: <http://sbcity.org/cityhall/finance/warrant_register.asp> Discussion Gross Payroll Monthly for February 15, 2021 11,666.69$ Bi-Weekly for February 18, 2021 2,219,354.42 Total Payroll Demands:2,231,021.11$ February 11, 2021 2020/21 (Register #32)1,236,031.71$ February 18, 2021 2020/21 (Register #33)561,268.57 Total Commercial Check Demands:1,797,300.28$ January 26, 2021 - January 29,2021 2020/21 (Register #1033-#1038)43,918.45$ February 01, 2021 - February 05,2021 2020/21 (Register #1039-#1043)1,489,156.81 Total Commercial EFT Demands:1,533,075.26$ 2020-2025 Key Strategic Targets and Goals Approval of the noted check and EFT registers for commercial and payroll disbursements align with Key Target No. 1: Financial Stability by creating a framework 25 Packet Pg. 1031 7140 Page 2 for spending decisions. Fiscal Impact Amounts noted in the disbursement registers have no further fiscal impact. Amounts were paid consistent with existing budget authorization and no further budgetary impact is required. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for January and February 2021. Attachments Attachment 1 Payroll Summary Report for February 2021 Attachment 2 Commercial Checks & Payroll Register #32 Attachment 3 Commercial Checks & Payroll Register #33 Attachment 4 Commercial EFT Register #1033-1038 Attachment 5 Commercial EFT Register #1039-1043 Ward: All Synopsis of Previous Council Actions: N/A 25 Packet Pg. 1032 25.a Packet Pg. 1033 Attachment: Attachment 1 - Payroll Summary Report for February 2021 (7140 : Approval of Commercial and Payroll Disbursements (All Wards)) 25.a Packet Pg. 1034 Attachment: Attachment 1 - Payroll Summary Report for February 2021 (7140 : Approval of Commercial and Payroll Disbursements (All Wards)) 25.b Packet Pg. 1035 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1036 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1037 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1038 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1039 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1040 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1041 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1042 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1043 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1044 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1045 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1046 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1047 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1048 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1049 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1050 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1051 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1052 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1053 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1054 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1055 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.b Packet Pg. 1056 Attachment: Attachment 2 - Commercial Checks & Payroll Register #32 (7140 : Approval of Commercial 25.c Packet Pg. 1057 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1058 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1059 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1060 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1061 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1062 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1063 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1064 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1065 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1066 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1067 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1068 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1069 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1070 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1071 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1072 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1073 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1074 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1075 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1076 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1077 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1078 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.c Packet Pg. 1079 Attachment: Attachment 3 - Commercial Checks & Payroll Register #33 (7140 : Approval of Commercial 25.d Packet Pg. 1080 Attachment: Attachment 4 - Commercial EFT Register #1033-1038 (7140 : Approval of Commercial and 25.d Packet Pg. 1081 Attachment: Attachment 4 - Commercial EFT Register #1033-1038 (7140 : Approval of Commercial and 25.e Packet Pg. 1082 Attachment: Attachment 5 - Commercial EFT Register #1039-1043 (7140 : Approval of Commercial and 25.e Packet Pg. 1083 Attachment: Attachment 5 - Commercial EFT Register #1039-1043 (7140 : Approval of Commercial and Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Edelia Eveland, Director of Human Resources Subject: Resolution Approving the Annual Renewal of the City’s Property Insurance for FY 2021-22 (All Wards) Recommendation Adopt Resolution No. 2021-54 of the Mayor and City Council of the City of San Bernardino, California, approving the annual renewal of the City’s property insurance for a premium not to exceed $1,292,000 for the term beginning April 1, 2021 and ending March 31, 2022. Background Alliant and Aon, the City's previous broker of record, provided quotes to the City for commercial property, flood, earthquake, auto, and terrorism insurance coverage beginning August 1, 2020. Stand-alone policies quoted through Aon totaled $1,255,005, while premium quotes through Alliant totaled $1,096,500. On July 15, 2020, the Mayor and City Council approved the annual renewal of the City’s property insurance policy negotiated through Alliant with their pooled insurance carrier Public Risk Innovation, Solutions, Management (PRISM) for the term beginning August 1, 2020 and ending March 31, 2021. Renewing the property insurance program through Alliant generated savings of over $158,505 for the City. Cyclical property appraisals are now included in the insurance premium, saving an estimated $40,000 in the current fiscal year for the cost of an updated property appraisal. Additionally, Alliant is paid by the insurance pool, which is a savings of $85,000 in annual broker fees. Discussion The City of San Bernardino is now one of 110 members that have a pooled membership within Public Risk Innovation, Solutions, and Management (P RISM) property program. Members within a pooled insurance plan typically experience lower rate increases year over year as opposed to stand-alone coverage. PRISM's property program is marketed on a global basis to many carriers annually. While they do try to maintain on-going multi-year relationships with as many carriers as possible, they always market the program broadly even if they are able to renew with the current carrier. The program itself provides many coverage types (all risk, earthquake, flood, a uto, etc.) and has many layers of coverage. There are over 100 different carriers on the program who 26 Packet Pg. 1084 7061 Page 2 insure different pieces of the various layers. PRISM seeks quotes from both domestic and international markets in order to fill all the program insurance needs, therefore it is a very intensive marketing process each year due to the size of the program and the number of carriers involved. Once the final quote is selected, PRISM then works internally with actuaries and underwriters to determine the premium a llocation of each member based on their individual loss experience and exposure information. Insurance Annual Renewal The City purchases commercial property insurance to cover for direct physical loss or damage to City property caused by or resulting from a covered cause of loss. The current property insurance market is experiencing increases due to natural disasters globally and wildfire exposure in California which have resulted in several carriers deciding to stop conducting business in California, reducing the capacity available to provide coverage to municipalities. When there is less capacity, prices are impacted. The migration away from the marketplace is driven by substantial losses over the past five (5) years. For those reasons, carriers that are willing to write policies for municipalities are increasing deductibles, decreasing limits, and increasing pricing. Most PRISM members are experiencing a 28%-47% increase in premiums, as compared to the City's not to exceed premium of $1,292,000 which r epresents a 17.83% increase over last year's not to exceed premium amount of $1,096,500. The current property insurance policy ends on March 31, 2021. Below is a breakdown of each type of coverage included in the renewal through Alliant with PRISM for the term beginning April 1, 2021 through March 31, 2022. Commercial Property The City purchases commercial property insurance to cover for direct damage to City property. The policy through PRISM provides a $300 million dollar limit per occurrence with a $100,000 deductible. Flood The City purchases flood insurance to cover direct physical loss of or damage to City property caused by or resulted from a flood. The policy through PRISM provides a $200 million limit with a $25,000 deductible. Earthquake The City purchases earthquake insurance to cover direct physical loss of or damage to City property caused by or resulted from an earthquake. The policy through PRISM provides a $100 million limit with a $100,000 deductible minimum, or 5% of the total value of the building. Auto Physical Damage The City purchases auto physical damage insurance to cover City-owned vehicles against perils such as collision, vandalism, fire and theft. The policy through PRISM provides a replacement cost value or actual cash valu e of vehicles with a $10,000 deductible. Terrorism and Sabotage 26 Packet Pg. 1085 7061 Page 3 The City purchases terrorism and sabotage insurance for property damage and business interruption coverage in the event of a terrorist attack. The policy through PRISM provides a $750 million limit with a $100,000 deductible. 2020-2025 Key Strategic Targets and Goals Approving the renewal of the City’s property insurance policy aligns with Key Target No. 1: Financial Stability. Fiscal Impact The FY 2020/21 Operating Budget includes funding to support expenditures in the current fiscal year. The policy term is April 1, 2021 through March 31, 2022 for a not to exceed premium of $1,292,000. The premium will be expensed across two fiscal years: three (3) months in FY 2020/21 in the amount of $323,000 and nine (9) months in FY 2021/22 in the amount of $969,000. Funding will be included in the FY 2021/22 Operating Budget for the portion of the premium expensed in next fiscal year. Conclusion It is recommended that the Mayor and City Council, adopt Resolution No. 2021-54 of the Mayor and City Council of the City of San Bernardino, California, approving the annual renewal of the City’s property insurance for a premium not to exceed $1,292,000 for the term beginning April 1, 2021 and ending March 31, 2022. Attachments Attachment 1 Resolution No. 2021-54 Attachment 2 PRISM 2021-22 Budget Estimates Ward: All Synopsis of Previous Council Actions: July 15, 2020 Mayor and City Council adopted Resolution No. 2020-176, approving the annual renewal of the City’s various insurance policies negotiated through Alliant for the term beginning August 1, 2020 and ending July 31, 2021 for: (1) a pro-rated premium not to exceed $820,190 for property insurance for the term beginning August 1, 2020 and ending March 31, 2021; (2) for a premium not to exceed $6,350 for cyber liability insurance for the term beginning August 1, 2020 and ending July 1, 2021; and (3) for a premium not to exceed $3,500,000 for excess liability insurance; AND authorizing an amendment to the FY 2020-21 Adopted Budget in the amount of $2,113,229 to be appropriated into the Liability Insurance Fund, Account Number 629-110-0056-5161, from the General Fund Reserves and authorize staff to continue exploring options for containing excess general liability insurance costs and to bring back an update in August of the outcome and option selected. 26 Packet Pg. 1086 RESOLUTION NO. 2021-54 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE ANNUAL RENEWAL OF THE CITY’S PROPERTY INSURANCE FOR A PREMIUM NOT TO EXCEED $1,292,000 FOR THE TERM BEGINNING APRIL 1, 2021 AND ENDING MARCH 31, 2022 WHEREAS, on July 15, 2020, the Mayor and City Council adopted Resolution No. 2020-176, approving the annual renewal of the City’s property insurance policy negotiated through Alliant with their pooled insurance carrier Public Risk Innovation, Solutions, Management (PRISM) for the term beginning August 1, 2020 and ending March 31, 2021; and WHEREAS, the City of San Bernardino is now one of 110 members that have a pooled membership within PRISM’s property program; and WHEREAS, PRISM seeks quotes from both domestic and international markets each year in order to fill the program insurance needs, producing quotes from over 100 different carriers. Once the final quote is selected, PRISM works internally with actuaries and underwriters to determine the premium allocation of each member based on their individual loss experience and exposure information; and WHEREAS, the City purchases commercial property insurance to cover for direct physical loss or damage to City property caused by or resulting from a covered cause of loss; and WHEREAS, purchasing the City’s Property Insurance for policy term beginning April 1, 2021 and ending March 31, 2022 meets the City’s insurance coverage needs. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager is hereby authorized to purchase the City’s Property Insurance for Policy Term April 1, 2021 through March 31, 2022. SECTION 3. Authorize the City Manager to execute any and all documents and agreements, including memoranda of understanding, to effectuate coverage for the City for property insurance in the amounts stated herein. SECTION 4. 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 26.a Packet Pg. 1087 Attachment: Attachment 1 - Resolution 2021-54 Property Insurance Renewal FY 21-22 [Revision 1] (7061 : Resolution Approving the Annual Resolution No. 2021- 54 the activity in question may have a significant effect on the environment, the activity i s not subject to CEQA. SECTION 5. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 6. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 26.a Packet Pg. 1088 Attachment: Attachment 1 - Resolution 2021-54 Property Insurance Renewal FY 21-22 [Revision 1] (7061 : Resolution Approving the Annual Resolution No. 2021- 54 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-54, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 26.a Packet Pg. 1089 Attachment: Attachment 1 - Resolution 2021-54 Property Insurance Renewal FY 21-22 [Revision 1] (7061 : Resolution Approving the Annual Estimated Premium:$361,000 to $407,000 Estimated Payroll:$78,602,970 Rating Group:High Safety Estimate Assumptions & Updates Payroll Audit Adjustment EWC Payroll History EWC Premium History 2020/21 Estimated Payroll:$69,134,063 2020/21:$336,180 2019/20 Estimated Payroll:$70,522,976 2019/20:$305,686 If you have directed us to apply the 2019/20 payroll audit to your 2021/22 premium,it has been included in the total collection shown.If you have decided to handle the payroll audit outside of your renewal premium,the estimated premium shown is the estimated total collection. Public Risk Innovation, Solutions, and Management (PRISM) 2021/22 Budget Estimates, January 2021 City of San Bernardino This second round of early estimates have been prepared to further aid you in budgeting for the 2021/22 fiscal year.It is important to keep in mind that it is still early in the process of determining each Program’s total cost for the upcoming year.Since the initial version provided in October,we have updated the budget estimates to reflect the estimated 2021/22 payroll submitted via the renewal applications and losses evaluated as of 6/30/2020.The estimates provided are intended to be conservative;however, since rates are still estimated,final premiums may be in excess of these estimates,we recommend you budget towards the high end of the range. If you are aware that you have had any substantial changes over the past 12 months,please contact Rebekah Winger and a better estimate will be developed for you. Excess Workers' Compensation Program The EWC premium projections have been updated to reflect your entity’s estimated 2021/22 payroll,as provided on your renewal application and your entity's losses based on the 6/30/20 evaluation date.This premium estimate assumes pool rate increases of 2.5%-10%and excess/reinsurance rate increases of 5-15%for most carriers,but up to 30%increases for some non-school carriers.The estimates have become more accurate with updated exposure and losses,but are still conservative due to the pending actuarial results and final reinsurance rates. Once those are received, we will distribute more accurate premium numbers. 26.b Packet Pg. 1090 Attachment: Attachment 2 - PRISM 2021-22 Budget Estimates (7061 : Resolution Approving the Annual Renewal of the City’s Property SBERC City of San Bernardino Public Risk Innovation, Solutions, and Management (PRISM) 2021/22 Early Budget Estimates, January 2021 0 This second round of early estimates have been prepared to further aid you in budgeting for the 2021/22 fiscal year. It is important to keep in mind that it is still early in the process of determining each program’s total cost for the upcoming year. Since the initial version provided in October, we have updated the budget estimates to reflect your entity's estimated 2021/22 payroll submitted via the renewal applications and losses evaluated as of 6/30/2020. The estimates provided are intended to be conservative; however, since rates are still estimated there is a chance that final premiums may be in excess of these estimates, we recommend you budget towards the high end of the range. If you are aware that you have had any substantial changes over the past 12 months, please contact Rebekah Winger and a better estimate can be developed for you. $56,000,000 Public entities and the insurance industry have witnessed dramatic increases in liability loss development in recent years and the GL2 program is no exception. The program is projecting continued rate increases in response to the negative impact of loss development trends on the insurance market. At this time, the GL2 premium projections assume increases of average rate increases of 10%-30%. This is an average, based off the final allocation, individual members rate increases may differ from this range depending on their loss experience, changes in exposure, or other factors, which have not yet been evaluated for the 2021/22 year. This market based allocation will be evaluated and approved by the GL2 Committee in the spring. Premium $1,090,000 $1,288,000 General Liability 2 Program 2019/20 Estimated Payroll: 2020/21 Estimated Payroll: to N/A $990,52020/21 Premium: 19/20 Premium: 21/22 Estimated Premium:2021/22 Estimated Payroll:$59,897,627 $351,191,722 $171,108,917 The 2021/22 updated October (Version 1) premium budget estimates had an overall premium increase of 28-47% for most members. This estimate is based on 2020/21 binding total insured values (TIV) and did not take into consideration property schedule updates. The January 2021 premium estimates are based on updated TIV as of November 18, 2020 and loss history. As indicated in the initial budget estimates, members with adverse loss history and/or significant TIV increases between the initial budget and the December budget may result in premium increases that are higher than the range provided in October. Finally, large catastrophic events or economic downturn prior to the March 31, 2021 renewal could impact the property insurance marketplace, resulting in further hardening of the market, potentially impacting the premium estimate. Premium $1,152,000 $1,292,000 Property Program 2020/21 AR TIV: 2020/21 EQ TIV: to N/A $1,000,95020/21 Premium: 19/20 Premium: 21/22 Estimated Premium: 26.b Packet Pg. 1091 Attachment: Attachment 2 - PRISM 2021-22 Budget Estimates (7061 : Resolution Approving the Annual Renewal of the City’s Property SBERC City of San Bernardino Public Risk Innovation, Solutions, and Management (PRISM) 2021/22 Early Budget Estimates, January 2021 0 The program is in the second year of a 2 year agreement with AIG. Premium estimates provided assume 10-20% increase over the expiring premium and do not contemplate any exposure changes. Premium $16,000 $17,400 Master Crime Program to $12,187 $14,48320/21 Premium: 19/20 Premium: 21/22 Estimated Premium: The estimated premiums shown are based on a 30-50% premium increase. The premium does not include the Cyber Enhancement Option (CEO). Please note these premium estimates do not contemplate any additional TIV increases excluding appraisals. Premium $8,300 $9,600 Cyber Liability Program to N/A $6,35020/21 Premium: 19/20 Premium: 21/22 Estimated Premium: 26.b Packet Pg. 1092 Attachment: Attachment 2 - PRISM 2021-22 Budget Estimates (7061 : Resolution Approving the Annual Renewal of the City’s Property Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Kris Jensen, Director of Public Works Subject: Construction Contract Award - Community Center Improvements (Wards 1, 6) Recommendation Adopt Resolution No. 2021-55 of the Mayor and City Council of the City of San Bernardino, California: 1. Approving the award of a Construction Contract with JCOS Development, Inc., in the amount of $374,800 to provide community center upgrades at Delmann Heights Community Center and 5th Street Senior Center; 2. Authorizing project construction, construction contingencies and inspections costs in the total amount of $191,704 for Delmann Heights Community Center Upgrades Project (CIP PR21-005), and in the total amount of $248,900 for 5th Street Senior Center Upgrades Project (CIP PR21-004); and 3. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Background The City owns, maintains, and operates both Delmann Heights Community Center and 5th Street Senior Community Center. Both facilities are in need of rehabilitation to address deferred maintenance items and restore the facilities to a safe and inviting condition for community center users. Addressing the most immediate deferred maintenance needs at both of these locations requires that interior and exterior painting be performed and flooring throughout the facilities be replaced. In anticipation of this work, two separate improvement projects were included in the FY 2020/21 Capital Improvement Plan (CIP) adopted on June 24, 2020 by the Mayor and City Council. The CIP established Cultural Development Funding in the amount of $250,000 for Delmann Heights Community Center Upgrades (CIP PR 21 -005), and $250,000 for 5th Street Senior Center Upgrades (CIP PR 21-004). Due to the similarity of work to be performed, and in an effort to expedite both projects, staff prepared plans and specifications to solicit pricing for both projects through a 27 Packet Pg. 1093 7107 Page 2 single bid process. The proposed scope of work at both community center locations addresses the removal and replacement of existing flooring and repainting of each facility’s interior and exterior. Results of the bid solicitation are included below. Discussion Project 13421 to provide community center upgrades, was advertised for public bidding on December 15, 2020 and December 22, 2020, in the San Bernardino County Sun Newspaper, F. W. Dodge, Construction Bid Board, High Desert Plan Room, San Diego Daily Transcript, Sub-Hub Online Plan Room, Reed Construction Data, Bid America Online, Construction Bid Source, Bid Ocean, the City’s websites, and the San Bernardino Area Chamber of Commerce. Sealed bids were received and opened on January 28, 2021. The City received four (4) bids as follows: Bidder City Base Bid JCOS Development, Inc. Buena Park, CA $ 374,800.00 R. Dependable Construction, Inc. San Bernardino, CA $ 381,500.00 Epsilon Engineering Moreno Valley, CA $ 450,850.00 Preferred General Services. Apple Valley, CA $ 506,667.00 The City has reviewed the bid package and confirmed that JCOS Development, Inc. of Buena Park, California, is the lowest responsible and responsive bidder, with a total bid amount of $374,800. If awarded by the Mayor and City Council, construction work is anticipated to begin in April 2021 and be completed by June 2021. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No. 1d: Financial Stability - Minimize risk and litigation exposure and 1e. Create an asset management plan. Award of this contract will result in community center improvements that help protect and extend the life of these facilities and help to restore these centers to a safe and esthetically pleasing condition for the community. Fiscal Impact There is no General Fund impact associated with this action. Project budgets for the proposed work were previously established through the adopted FY 2020/21 Capital Improvement Plan in the Cultural Development fund as follows: Delmann Heights Community Center Upgrades (247-160-8758) $ 250,000 5th Street Senior Center Upgrades (247-160-8755) $ 250,000 Total Available Project Funding $ 500,000 The overall cost of the improvement work at both locations is as follows: Construction Bid Amount $ 374,800 Construction Contingencies $ 37,460 27 Packet Pg. 1094 7107 Page 3 Engineering and Inspections $ 28,344 Total Combined Project Costs ` $ 440,604 Total estimated expenditures for each community center are summarized below: Delmann Heights Community Center (Fund No. 247-160-8758) $ 191,704 5th Street Senior Center (Fund No. 247-160-8755) $ 248,900 Total Combined Project Cost $ 440,604 Conclusion Adopt Resolution No. 2021-55 of the Mayor and City Council of the City of San Bernardino, California: 1. Approving the award of a Construction Contract with JCOS Development, Inc., in the amount of $374,800 to provide community center upgrad es at Delmann Heights Community Center and 5th Street Senior Center; 2. Authorizing project construction, construction contingencies and inspections costs in the total amount of $191,704 for Delmann Heights Community Center Upgrades Project (CIP PR21-005), and in the total amount of $248,900 for 5th Street Senior Center Upgrades Project (CIP PR21-004); and 3. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Attachments Attachment 1 Resolution No. 2021-55 Attachment 2 Resolution No. 2021-55; Exhibit A - Contract Agreement Attachment 3 Bid Tabulation Attachment 4 Bid Proposal Attachment 5 Location Map Ward: 1, 6 Synopsis of Previous Council Actions: June 24, 2020 The Mayor and City Council adopted Resolution No. 2020- 128 approving Capital Improvement Program FY 2020/21 27 Packet Pg. 1095 RESOLUTION NO. 2021-55 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA APPROVING THE AWARD OF A CONSTRUCTION CONTRACT WITH JCOS DEVELOPMENT, INC., IN THE AMOUNT OF $374,800 TO PROVIDE COMMUNITY CENTER UPGRADES AT DELMANN HEIGHTS COMMUNITY CENTER AND 5TH STREET SENIOR CENTER; AND AUTHORIZING PROJECT CONSTRUCTION, CONSTRUCTION CONTINGENCIES AND INSPECTIONS COSTS IN THE TOTAL AMOUNT OF $191,704 FOR DELMANN HEIGHTS COMMUNITY CENTER UPGRADES PROJECT (CIP PR21-005), AND IN THE TOTAL AMOUNT OF $248,900 FOR 5TH STREET SENIOR CENTER UPGRADES PROJECT (CIP PR21-004); AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXPEND THE CONTINGENCY FUND, IF NECESSARY, TO COMPLETE THE PROJECT. WHEREAS, the City is responsible for maintaining Delmann Heights Community Center located at 2969 North Flores Street and 5th Street Senior Center located at 600 West 5th Street in the City of San Bernardino; and WHEREAS, both of these facilities are in need of rehabilitation to address deferred maintenance items; and WHEREAS, on June 24, 2020 the Mayor and City Council adopted the FY2020/21 Capital Improvement Plan (CIP), established Cultural Development Funding in the amount of $250,000 for Delmann Heights Community Center Upgrades (CIP PR 21-005), and $250,000 for 5th Street Senior Center Upgrades (CIP PR 21-004); and WHEREAS, in December, 2020 staff administered a competitive bid process for Community Center Improvements at Delmann Heights and 5th Street Project (“Project”) resulting in four construction cost submittals; and WHEREAS, JCOS Development, Inc., of Buena Park, California, has been determined to be the lowest responsive and responsible bidder; and WHEREAS, the City now wishes to enter into a Construction Agreement with JCOS Development, Inc., of Buena Park, California in the amount of $374,800 to complete the Project. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 27.a Packet Pg. 1096 Attachment: Attachment 1 - Resolution No. 2021-55 [Revision 2] (7107 : Construction Contract Award - Community Center Improvements Resolution No. 2021-55 SECTION 1. The City Manager is hereby authorized to execute a Construction Agreement, and any supporting documents, for Community Center Improvements at Delmann Heights and 5th Street Senior Center projects with JCOS Development, Inc., of Buena Park, California in the total amount of $374,800 on behalf of the City, attached hereto and incorporated herein as Exhibit “A”. SECTION 2. The City Manager, or his designee, is hereby authorized to execute all documents in support of Community Center Improvements at Delmann Heights and 5th Street Community Center Project 13421 on behalf of the City and to expend contingency funds, if necessary, to complete the project. SECTION 3. The Director of Finance is hereby authorized to issue a purchase order in the amount of $374,800 to JCOS Development, Inc., of Buena Park, in support of the Construction Agreement. SECTION 4. As the decision-making body for the project, the City Council has reviewed and considered the information contained in the administrative record for the proposed project. Based upon the facts and information contained in the administrative record, including all written and oral evidence presented to the City Council, the City Council finds, as follows: (1) The administrative record has been completed in compliance with CEQA, the State CEQA Guidelines, and the City’s Local CEQA Guidelines; (2) The proposed project is exempt from the requirements of the California Environmental Quality Act pursuant to Section 15301 (Class 1 – Existing Facilities) of the CEQA Guidelines because it involves the painting and flooring of the existing structure with no expansion of the existing use. Additionally, 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. (3) The application of the Class 1 categorical exemption is not barred by one of the exceptions set forth in the CEQA Guidelines Section 15300.2 because parking lot resurfacing does not present any unusual circumstances; would not damage scenic resources, including any resources in the area of a Scenic Highway; would not be utilized on a hazardous waste site; and would not impact historic resources of any kind; and (4) The determination of CEQA exemption reflects the independent judgment of the City Council. SECTION 5. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 6. Effective Date. This Resolution shall become effective immediately. 27.a Packet Pg. 1097 Attachment: Attachment 1 - Resolution No. 2021-55 [Revision 2] (7107 : Construction Contract Award - Community Center Improvements Resolution No. 2021-55 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________, 2021. John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, City Clerk Approved as to form: __________________________________ Sonia Carvalho, City Attorney 27.a Packet Pg. 1098 Attachment: Attachment 1 - Resolution No. 2021-55 [Revision 2] (7107 : Construction Contract Award - Community Center Improvements Resolution No. 2021-55 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-55, adopted at a regular meeting held at the ___ day of _______, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. ______________________________ Genoveva Rocha, CMC, City Clerk 27.a Packet Pg. 1099 Attachment: Attachment 1 - Resolution No. 2021-55 [Revision 2] (7107 : Construction Contract Award - Community Center Improvements A G R E EM E N T CITY OF SAN BERNARDINO THIS AGREEMENT is made and concluded this _____ day of _______________, 21___, between the City of San Bernardino (owner and hereinafter "CITY"), and ____________________________________________________ (hereinafter "CONTRACTOR"). 1. For and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by the CITY, and under the conditions expressed in the bond as deposited with the CITY, receipt of which is hereby acknowledged, the CONTRACTOR agrees with the CITY, at the CONTRACTOR's own proper cost and expense in the Special Provisions to be furnished by the CITY, to furnish all materials, tools and equipment and perform all the work necessary to complete in good workmanlike and substantial manner the COMMUNITY CENTER IMPROVEMENTS AT DELMANN HEIGHTS AND 5TH STREET Project No. 13421 in strict conformity with Plans and Special Provisions Project No. 13421, and also in accordance with Standard Specifications for Public Works/Construction, latest edition in effect on the first day of the advertised “Notice Inviting Sealed Bids” for this project, on file in the Office of the City Engineer, Public Works Department, City of San Bernardino, which said Plans and Special Provisions and Standard Specifications are hereby especially referred to and by such reference made a part hereof. 2. The CONTRACTOR agrees to receive and accept the prices as set forth in the Bid Schedule as full compensation for furnishing all materials and doing all the work contemplated and embraced in this agreement; also for all loss or damage arising out of the nature of the work aforesaid or from any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the work and for all risks of every description connected with the work; also for all expenses incurred by or in consequence of the suspension or discontinuance of work, and for well and faithfully completing the work and the whole thereof, in the manner and according to the Plans and Special Provisions, and requirements of the Engineer under them. 3. The CONTRACTOR herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on the basis of race, color, national origin, religion, sex, marital status, or ancestry in the performance of this contract, nor shall the CONTRACTOR or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection of subcontractors, vendees, or employees in the performance of this contract. Failure by the CONTRACTOR to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy, as recipient deems appropriate. A-1 27.b Packet Pg. 1100 Attachment: Attachment 2 - Resolution No. 2021-55 "Exhibit A" - Contract Agreement [Revision 1] (7107 : Construction Contract Award - 4. CITY hereby promises and agrees with the said CONTRACTOR to employ, and does hereby employ the said CONTRACTOR to provide the materials and to do the work according to the terms and conditions herein contained and referred to, for the prices aforesaid, and hereby contracts to pay the same at the time, in the manner, and upon the conditions above set forth; and the same parties for themselves, their heirs, executors, administrators, and assigns, do hereby agree to the full performance of the covenants herein contained. 5. It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid of said CONTRACTOR, then this instrument shall control and nothing herein shall be considered as an acceptance of said terms of said bid conflicting herewith. IN WITNESS WHEREOF, the parties of these presents have executed this contract in four (4) counterparts, each of which shall be deemed an original in the year and day first above mentioned. CONTRACTOR CITY OF SAN BERNARDINO NAME OF FIRM: JCOS DEVELOPMENT INC BY: ____________________________ ROBERT D. FIELD, City Manager BY: _______________________________ TITLE: ATTEST: MAILING ADDRESS: _______________________________ GENOVEVA ROCHA, CMC, City Clerk 8201 ORANGETHORPE AVE., SUITE D BUENA PARK CA 90621_____________ APPROVED AS TO FORM: _______________________________ PHONE NO.: (702) _576-7484__________ SONIA CARVALHO, City Attorney ATTEST: ____________________________________ Secretary NOTE: Secretary of the Owner should attest. If Contractor is a corporation, Secretary should attest. 27.b Packet Pg. 1101 Attachment: Attachment 2 - Resolution No. 2021-55 "Exhibit A" - Contract Agreement [Revision 1] (7107 : Construction Contract Award - 27.c Packet Pg. 1102 Attachment: Attachment 3 - Bid Tabulation (7107 : Construction Contract Award - Community Center 27.d Packet Pg. 1103 Attachment: Attachment 4 - Bid Proposal (7107 : Construction Contract Award - Community Center Improvements (Wards 1, 6)) 27.d Packet Pg. 1104 Attachment: Attachment 4 - Bid Proposal (7107 : Construction Contract Award - Community Center Improvements (Wards 1, 6)) 27.d Packet Pg. 1105 Attachment: Attachment 4 - Bid Proposal (7107 : Construction Contract Award - Community Center Improvements (Wards 1, 6)) 27.d Packet Pg. 1106 Attachment: Attachment 4 - Bid Proposal (7107 : Construction Contract Award - Community Center Improvements (Wards 1, 6)) 27.d Packet Pg. 1107 Attachment: Attachment 4 - Bid Proposal (7107 : Construction Contract Award - Community Center Improvements (Wards 1, 6)) 27.d Packet Pg. 1108 Attachment: Attachment 4 - Bid Proposal (7107 : Construction Contract Award - Community Center Improvements (Wards 1, 6)) 27.d Packet Pg. 1109 Attachment: Attachment 4 - Bid Proposal (7107 : Construction Contract Award - Community Center Improvements (Wards 1, 6)) 27.d Packet Pg. 1110 Attachment: Attachment 4 - Bid Proposal (7107 : Construction Contract Award - Community Center Improvements (Wards 1, 6)) 27.d Packet Pg. 1111 Attachment: Attachment 4 - Bid Proposal (7107 : Construction Contract Award - Community Center Improvements (Wards 1, 6)) 27.d Packet Pg. 1112 Attachment: Attachment 4 - Bid Proposal (7107 : Construction Contract Award - Community Center Improvements (Wards 1, 6)) 27.d Packet Pg. 1113 Attachment: Attachment 4 - Bid Proposal (7107 : Construction Contract Award - Community Center Improvements (Wards 1, 6)) 27.d Packet Pg. 1114 Attachment: Attachment 4 - Bid Proposal (7107 : Construction Contract Award - Community Center Improvements (Wards 1, 6)) 27.d Packet Pg. 1115 Attachment: Attachment 4 - Bid Proposal (7107 : Construction Contract Award - Community Center Improvements (Wards 1, 6)) 27.d Packet Pg. 1116 Attachment: Attachment 4 - Bid Proposal (7107 : Construction Contract Award - Community Center Improvements (Wards 1, 6)) 27.d Packet Pg. 1117 Attachment: Attachment 4 - Bid Proposal (7107 : Construction Contract Award - Community Center Improvements (Wards 1, 6)) 27.d Packet Pg. 1118 Attachment: Attachment 4 - Bid Proposal (7107 : Construction Contract Award - Community Center Improvements (Wards 1, 6)) ATTACHMENT 5 5TH STREET SENIOR CENTER LOCATION MAP 600 W 5th Street, San Bernardino, California 92410 27.e Packet Pg. 1119 Attachment: Attachment 5 - Location Map (7107 : Construction Contract Award - Community Center Improvements (Wards 1, 6)) DELMANN HEIGHTS COMMUNITY CENTER LOCATION MAP 2969 N Flores Street, San Bernardino, California 92405 27.e Packet Pg. 1120 Attachment: Attachment 5 - Location Map (7107 : Construction Contract Award - Community Center Improvements (Wards 1, 6)) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Kris Jensen, Director of Public Works Subject: Exempt Surplus Land Declaration - San Marcos Street and Congress Street Property (Ward 3) Recommendation Adopt Resolution No. 2021-35 of the Mayor and City Council of the City of San Bernardino, California, declaring City-owned property commonly known as San Marcos Avenue and Congress Street, located northerly of the southerly line of Parcel 3 as shown on Parcel Map 19648 recorded in Parcel Map Book 253 Pages 51 and 52 records of San Bernardino County, APN 0274-011-29 (“Property”), as “exempt surplus land,” as defined, and direct the City Manager to comply with the requirements of the Surplus Land Act, Government Code, Section 54220 et seq., for that exempt surplus land. Background The City owns Property, totaling approximately 0.46 gross acres, located northerly of the southerly line of Parcel 3 as shown on Parcel Map 19648. The Property is commonly known as a portion of San Marcos Street and Congress Street. The Property was purchased from San Bernardino County by the City per Resolution No. 80-58, adopted by the Mayor and Common Council on February 18 th, 1980, authorizing that purchase. The document recorded on August 27, 1981 as instrument number 81-190528 describes the Property as purchased by the City for street/right-of-way purposes; however, the Property presently sits vacant. The City plans to enter into a separate, property disposition agreement with Mary’s Mercy Center, which presently owns the adjoining, adjacent parcels to the Property. Per Government Code 54221(f)(1)(E) of the Surplus Land Act, the P roperty would thus fall under one of the definitions for “exempt surplus land,” specifically, “surplus land that is a former street, right of way, or easement, and is conveyed to an owner of an adjacent property”. Staff recommends that portions of San Marcos Street and Congress Street that make up the Property, be declared “exempt surplus land,” and that exemption be transmitted to the California Department of Housing and Community Development (HCD), so that the Property may ultimately be disposed of. The Property is no longer needed for street 28 Packet Pg. 1121 7142 Page 2 purposes, and Property would better serve the City and community if it were developed. Additionally, any sale proceeds and property tax generated may provide additional funding to enhance City services. Discussion New legislation, which took effect on January 1, 2020, requires that before a local agency takes any action to dispose of land no longer necessary for the “agency’s use,” the land must be declared either “surplus land” or “exempt surplus land,” as suppor ted by written findings. Since the Property qualifies as “exempt surplus land” per Government Code 54221(f)(1)(E), written findings must be made by Council resolution and the resolution shall be transmitted to the California Department of Housing and Community Development (HCD) thirty (30) days before the Property is disposed of. The approval of the Property’s disposition would return to the City Council after that time. 2020-2025 Key Strategic Targets and Goals Declaration of this property as Surplus Land aligns with the Key Target No. 4: Economic Growth and Development by supporting the possible sale and reuse of the land for future development that may result in additional revenue sources for the City and provide services or amenities to support the growing community. Fiscal Impact There is no fiscal impact to the City associated with this action. Environmental Analysis The proposed Resolution simply declares the Property “exempt surplus land” so that finding may be provided to HCD. The proposed Res olution does not authorize or approve the actual disposition or sale of the land. Therefore, the proposed Resolution is not a “project” under the California Environmental Quality Act (“CEQA”) because that declaration does not in itself commit the City to any future action, nor does the action approve a particular project, or grant any specific approval that would have a direct or reasonably foreseeable indirect environmental impact pursuant to CEQA. (See 14 C.C.R. §§ 15060(c); 15378(b).) As such, the mere provision of this executed Resolution to HCD is not the approval of a “project” under the California Environmental Quality Act, and no further action under CEQA is required. At the time a proposed project at the Property returns to the City Council, further CEQA analysis will be performed by staff and a new CEQA determination proposed for Council consideration. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-35, declaring City-owned property commonly known as San Marcos Avenue and Congress Street, located northerly of the southerly line of Parcel 3 as shown on Parcel Map 19648 recorded in Parcel Map Book 253 Pages 51 and 52 records of San Bernardino County, APN 0274 -011-29 (“Property”), as “exempt surplus land,” as defined, and direct the City Manager to comply with the requirements of the Surplus Land Act, Government Code, Section 54220 et seq., for that exempt surplus land. 28 Packet Pg. 1122 7142 Page 3 Attachments Attachment 1 Resolution No. 2021-35 Attachment 2 Exhibit 1 - Exempt Surplus Property Location Map Attachment 3 Resolution No. 80-58 Ward: 3 Synopsis of Previous Council Actions: February 18, 1980 The Mayor and City Council adopted Resolution 80-58 authorizing purchase of San Marcos Street and Serritos Avenue (now known as Congress Street) 28 Packet Pg. 1123 RESOLUTION NO. 2021-35 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DECLARING CITY-OWNED PROPERTY COMMONLY KNOWN AS SAN MARCOS AVENUE AND CONGRESS STREET LOCATED NORTHERLY OF THE SOUTHERLY LINE OF PARCEL 3 AS SHOWN ON PARCEL MAP 19648 RECORDED IN PARCEL MAP BOOK 253 PAGES 51 AND 52 RECORDS OF SAN BERNARDINO COUNTY, AS EXEMPT SURPLUS LAND, AND DIRECT THE CITY MANAGER TO COMPLY WITH THE REQUIREMENTS OF THE SURPLUS LAND ACT, GOVERNMENT CODE, SECTION 54220 ET SEQ., AND FINDING THE ACTION EXEMPT FROM CEQA WHEREAS, the City owns a parcel of land (APN 0274-011-29) totaling approximately 0.46 gross acres located northerly of the southerly line of Parcel 3 as shown on Parcel Map 19648 commonly known as a portion of San Marcos Street and Congress Street (“Property”); WHEREAS, the Property was purchased from San Bernardino County by the City per Resolution No. 80-58, adopted by the Mayor and Common Council February 18th, 1980, and the document recorded August 27, 1981 as instrument number 81-190528 describes the Property purchased by the City as for street/right-of-way purposes, however, the Property presently sits vacant; WHEREAS, the City’s planned disposition of the Property would be to Mary’s Mercy Center, which presently owns the adjoining, adjacent parcels on both sides of the Property (see Exhibit A – Parcel Map No. 19648); and WHEREAS, the Property, acquired for street/right-of-way purposes, would be disposed of to the owner of adjacent parcels, and therefore comes under the definition of “exempt surplus land” pursuant to Government Code 54221(f)(1)(E): “surplus land that is a former street, right of way, or easement, and is conveyed to an owner of an adjacent property.” BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Council finds that the Property qualifies as “exempt surplus land” under Government Code 54221(f)(1)(E), and is not necessary for the City’s use. SECTION 3. The City Council authorizes the City Manager to comply with the requirements of the Surplus Land Act, Government Code, Section 54220 et seq., for purposes of 28.a Packet Pg. 1124 Attachment: Attachment 1 - Resolution No. 2021-35 [Revision 1] (7142 : Exempt Surplus Land Declaration - San Marcos Street and Congress Resolution No. 2021-35 transmitting this executed resolution to the California Department of Housing and Community Department (HCD) thirty (30) days before the Property is proposed for potential disposition. SECTION 4. The action authorized by this Resolution is the mere provision of the City’s “exempt surplus land” finding to HCD. However, this Resolution does not authorize or approve the actual disposition or sale of the land. Thus, this action does not commit the City to any future action, nor does the action approve a particular project, or grant any specific approval that would have a direct or reasonably foreseeable indirect environmental impact pursuant to CEQA. (See 14 C.C.R. §§ 15060(c); 15378(b).) As such, the mere provision of this executed Resolution to HCD is not the approval of a “project” under the California Environmental Quality Act, and no further action under CEQA is required. SECTION 5. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 6. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 28.a Packet Pg. 1125 Attachment: Attachment 1 - Resolution No. 2021-35 [Revision 1] (7142 : Exempt Surplus Land Declaration - San Marcos Street and Congress Resolution No. 2021-35 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-35, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 28.a Packet Pg. 1126 Attachment: Attachment 1 - Resolution No. 2021-35 [Revision 1] (7142 : Exempt Surplus Land Declaration - San Marcos Street and Congress 28.b Packet Pg. 1127 Attachment: Attachment 2 - Resolution 2021-35; Exhibit 1 - Exempt Surplus Property Location Map (7142 : Exempt Surplus Land Declaration - 28.c Packet Pg. 1128 Attachment: Attachment 3 - Resolution 80-58 (7142 : Exempt Surplus Land Declaration - San Marcos Street and Congress Street Property (Ward 28.c Packet Pg. 1129 Attachment: Attachment 3 - Resolution 80-58 (7142 : Exempt Surplus Land Declaration - San Marcos Street and Congress Street Property (Ward 28.c Packet Pg. 1130 Attachment: Attachment 3 - Resolution 80-58 (7142 : Exempt Surplus Land Declaration - San Marcos Street and Congress Street Property (Ward 28.c Packet Pg. 1131 Attachment: Attachment 3 - Resolution 80-58 (7142 : Exempt Surplus Land Declaration - San Marcos Street and Congress Street Property (Ward 28.c Packet Pg. 1132 Attachment: Attachment 3 - Resolution 80-58 (7142 : Exempt Surplus Land Declaration - San Marcos Street and Congress Street Property (Ward Page 1 Request for Future Meeting City of San Bernardino Date: March 3, 2021 To: Honorable Mayor and City Council Members From: Kimberly Calvin, Council Member, Ward 6 Subject: Establishment of Ad Hoc and Standing Council Sub- Committees 29 Packet Pg. 1133