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HomeMy WebLinkAbout10-05-2022 Agenda PacketMayor and City Council of the City of San Bernardino Page 1 CITY OF SAN BERNARDINO AGENDA FOR THE REGULAR MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY WEDNESDAY, OCTOBER 05, 2022 7:00 PM ­ OPEN SESSION – CLOSED SESSION TO FOLLOW AFTER REGULAR MEETING FELDHEYM CENTRAL LIBRARY • SAN BERNARDINO, CA 92410 • WWW.SBCITY.ORG Theodore Sanchez John Valdivia Damon L. Alexander COUNCIL MEMBER, WARD 1 COUNCIL MEMBER, WARD 7 MAYOR Sandra Ibarra Robert D. Field COUNCIL MEMBER, WARD 2 CITY MANAGER Juan Figueroa Sonia Carvalho COUNCIL MEMBER, WARD 3 CITY ATTORNEY Fred Shorett Genoveva Rocha COUNCIL MEMBER, WARD 4 CITY CLERK Ben Reynoso COUNCIL MEMBER, WARD 5 Kimberly Calvin COUNCIL MEMBER, WARD 6 Welcome to a meeting of the Mayor and City Council of the City of San Bernardino. PLEASE VIEW THE LAST PAGES OF THE AGENDA FOR PUBLIC COMMENT OPTIONS OR CLICK ON THE FOLLOWING LINK: https://tinyurl.com/mccpubliccomments Please contact the City Clerk's Office (909) 384­5002 two working days prior to the meeting for any requests for reasonable accommodation to include interpreters. To view PowerPoint presentations, written comments, or any revised documents for this meeting date, select the link https://tinyurl.com/agendabackup100522 From the City's homepage www.sbcity.org select the Government category ­> City Clerk ­> on the Navigation menu select Search for Records Online ­> Council Agendas ­> Current Year 2022 ­> Meeting Date Mayor and City Council of the City of San Bernardino Page 2 CALL TO ORDER Attendee Name Council Member, Ward 1 Theodore Sanchez Council Member, Ward 2 Sandra Ibarra Mayor Pro­Tem, Ward 3 Juan Figueroa Council Member, Ward 4 Fred Shorett Council Member, Ward 5 Ben Reynoso Council Member, Ward 6 Kimberly Calvin Council Member, Ward 7 Damon L Alexander Mayor John Valdivia City Manager Robert D. Field City Attorney Sonia Carvalho City Clerk Genoveva Rocha 7:00 P.M. INVOCATION AND PLEDGE OF ALLEGIANCE CITY MANAGER UPDATE MAYOR & CITY COUNCIL UPDATES/REPORTS ON CONFERENCES & MEETINGS PRESENTATIONS 1. Citizen of the Month, C & F Boxing (September 2022) p. 13 2. Citizen of the Month – Harry Hatch (September 2022) p. 15 3. Festival: Where our Cultures Connect! p. 17 PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA APPOINTMENTS 4. Charter Review Committee Appointment (Ward 6) p. 32 5. Planning Commission Appointment (Ward 3) p. 42 DISCUSSION 6. Adopt Ordinance No. MC­1592 (Alcoholic Beverage Sales Locational Restrictions) (All Wards) p. 51 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Ordinance No. MC­1592 approving Development Code Amendment 22­04 amending Section 19.06.030(2)(B) Article II Section III(A)­(I) (Alcohol Beverage Sales – Locational Restrictions) and Section 19.06.030(2)(B) Article II Section VI(D)­ (E) (Alcohol Beverage Sales – Permit Application) of the City of San Bernardino Municipal Code (Title 19) to increase the locational restriction from 500 feet to 1,000 feet for new alcoholic beverage sales activities from sensitive land uses (Attachment 1). Mayor and City Council of the City of San Bernardino Page 3 7. Ordinance Amending Chapter 9.90 of the San Bernardino Municipal Code p. 64 Recommendation: Read by title only, waive further reading, and introduce Ordinance No. MC­1596 of the Mayor and City Council of the City of San Bernardino, California, amending Chapter 9.90 of the San Bernardino Municipal Code, granting citation authority to security guard personnel for violations of the San Bernardino Municipal Code on City property. PUBLIC HEARING 8. Appeal 22­02 for Development Permit Type­P 20­08 (Ward 4) p. 69 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2022­206 of the Mayor and City Council of the City of San Bernardino, California, denying Appeal 22­02, thereby upholding the Planning Commission’s finding the project categorically exempt under the California Environmental Quality Act and approval of Development Permit Type­P 20­08 allowing the development and establishment of a twenty­seven (27) unit multi­family residential complex on a parcel containing approximately 2.38 acres, located on the west side of N. Sterling Avenue (APN: 0272­372­59), between E. Marshall Boulevard and E. Lynwood Drive within the Residential Medium (RM) zone (Attachment 1). 9. Public Hearing on Proceedings to Form Proposed Community Facilities District No. 2022­1 (Highland/Medical) p. 241 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1) Adopt Resolution No. 2022­216 of the Mayor and City Council of the City of San Bernardino, California, Establishing Community Facilities District No. 2022­1 (Highland/Medical) of the City of San Bernardino, County of San Bernardino, State of California, and the boundaries thereof and approving a Funding Agreement; 2) Adopt Resolution No. 2022­217 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. 2022­1 (Highland/Medical), 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; 3) Adopt Resolution No. 2022­218 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. 2022­1 (Highland/Medical) 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 Therefore; 4) Adopt Resolution No. 2022­219 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. 2022­1 (Highland/Medical); and 5) Introduce, read by title only and waive further reading of Ordinance No. MC­1599 of the Mayor and City Council of the City of San Bernardino, California, Acting as the Legislative Body of Community Facilities District No. 2022­1 (Highland/Medical), Authorizing the Levy of Special Taxes in such Community Facilities District. Mayor and City Council of the City of San Bernardino Page 4 10. Public Hearing on Proceedings to Form Proposed Community Facilities District No. 2022­2 (Palm) p.377 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1) Adopt Resolution No. 2022­212 of the Mayor and City Council of the City of San Bernardino, California, Establishing Community Facilities District No. 2022­2 (Palm) of the City of San Bernardino, County of San Bernardino, State of California, and the boundaries thereof and approving a Funding Agreement; 2) Adopt Resolution No. 2022­213 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. 2022­2 (Palm), 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; 3) Adopt Resolution No. 2022­214 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. 2022­2 (Palm) 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 Therefore; 4) Adopt Resolution No. 2022­215 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. 2022­2 (Palm); and 5) Introduce, read by title only and waive further reading of Ordinance No. MC­1598 of the Mayor and City Council of the City of San Bernardino, California, Acting as the Legislative Body of Community Facilities District No. 2022­2 (Palm), Authorizing the Levy of Special Taxes in such Community Facilities District. 11. Ordinance Adjusting the Salary and Benefits for the Position of City Council Member p. 513 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Review and consider the information provided for adjusting the salary and benefits for the position of City Council Member, provide direction for modification, adopt the recommendation from the Elected Official Compensation Committee as presented, or receive and file; and 2. If decided by the Mayor and City Council: introduce, read by title only, and waive further reading of Ordinance No. MC­1595 of the Mayor and City Council of the City of San Bernardino, California, amending Chapter 2.82.020 of the San Bernardino Municipal Code to adjust the salary and benefits of the City Council Members as recommended by the Elected Official Compensation Advisory Commission. Mayor and City Council of the City of San Bernardino Page 5 12. Public Hearing on Annexation No. 24 to Community Facilities District 2019­1 (Ward 6) p. 524 Recommendation: The Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; and 2. Adopt Resolution No. 2022­207 of the Mayor and City Council of the City of San Bernardino, California, calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019­1 (Maintenance Services) (Annexation No. 24); and 3. Hold a special landowner election and canvass the election; and 4. Adopt Resolution No. 2022­208 of the Mayor and City Council of the City of San Bernardino, California, declaring election results for Community Facilities District No. 2019­1 (Maintenance Services) (Annexation No. 24); and 5. Introduce, read by title only, and waive further reading of Ordinance No. MC­1597 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC­1522 and levying special taxes to be collected during Fiscal Year 2022­2023 to pay annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019­1 (Maintenance Services); and 6. Schedule the adoption of Ordinance No. MC­1597 for October 19, 2022. CONSENT CALENDAR 13. Purchase Authorization and Multiple Year Contract with HLP, Inc. for Animal Shelter Software Services p. 580 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Authorize the City Manager to execute a Professional Services Agreement with HLP Inc., for animal shelter software services from July 1, 2022 through June 30, 2025; and 2. Authorize the Agency Director of Administrative Services to issue a purchase order to HLP Inc., in an amount not to exceed $150,000 over the three­year period of the contract. 14. 2023 National League of Cities Congressional City Conference Travel Approval (All Wards) p. 615 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, pre­approve travel to the 2023 National League of Cities Congressional City Conference for the Mayor and City Council. 15. Technical Corrections to Previously Adopted Items: 1) Resolution No. 2022­ 203 authorizing the City Manager to receive and administer California Board of State & community corrections grant award of $3.8 million, authorizing the City Manager to execute a fourth amendment to an agreement with HOPE Culture, and authorizing the Agency Director of Administrative Services to amend the FY 2022/2023 adopted budget revenue and expenditures by $3,800,000.00 (All Wards) p. 634 Mayor and City Council of the City of San Bernardino Page 6 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California reaffirm their previous action of: Adopting Resolution No. 2022­203 authorizing the City Manager to receive and administer California Board of State & community corrections grant award of $3.8 million, authorizing the City Manager to execute a fourth amendment to an agreement with HOPE Culture, and authorizing the Agency Director of Administrative Services to amend the FY 2022/2023 adopted budget revenue and expenditures by $3,800,000.00. 16. Imposing Liens On Certain Real Property to Recover Costs for Code Enforcement Abatements p. 640 Recommendation: Adopt Resolution No. 2022­209 of the Mayor and City Council of the City of San Bernardino, California, imposing liens on certain real property located within the City of San Bernardino for cost recovery of public nuisance abatements. 17. Settlement and Release Agreement with Montecito Equities, Ltd. p. 647 Recommendation: Authorize the City Manager, or his designee, to execute the Settlement and Release Agreement with Montecito Equities, Ltd. 18. Approval of Commercial and Payroll Disbursements (All Wards) p. 659 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for September 2022. 19. Investment Portfolio Report for July 2022 (All Wards) p. 717 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 July 2022. 20. Execute Annual Professional Service Agreements with Solutions Simplified, NPA Computers, ATEL Communications and a two­year agreement with NeoGov (All Wards) p. 729 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, execute Annual Professional Services Agreements for software and hardware usage fees between the City of San Bernardino and Solutions Simplified for DocuSign Software Services, NAP Computers, ATEL Communications, and the two­ year renewal service agreement with Governmentjobs.com, Inc., DBA NeoGov for approximately $217,000. 21. Ratify and Approve the Enterprise Agreement with Earth Science Research Institute, Inc. p. 797 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, ratify and approve the Enterprise Agreement with Earth Science Research Institute, Inc. (ESRI) to reflect the correct three­year commitment terms for the total amount not to exceed $430,299. Mayor and City Council of the City of San Bernardino Page 7 22. Side Letter Agreement Between the City of San Bernardino and the San Bernardino Police Officers Association p. 809 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2022­211 approving a Side Letter Agreement to the Memorandum of Understanding between the City of San Bernardino and the San Bernardino Police Officers Association (SBPOA), amending Article III, Section 3 – Overtime. 23. Amendment No.1 to Agreement with Ingram Library Services, LLC. p. 817 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the Library Director to execute Amendment No. 1 to the agreement between San Bernardino Public Library (SBPL) and Ingram Library Services, LLC, for the purchase of library books and authorize the Agency Director of Administrative Services to approve an annual purchase order for an amount not to exceed $85,000. 24. Adoption of Ordinance No. MC­1594, CFD 2019­1 – Annexation No. 22 (Ward 7) p. 837 Recommendation: Adopt Ordinance No. MC­1594 of Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC­1522 and levying special taxes to be collected during Fiscal Year 2022­2023 to pay 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. 2019­1 (Maintenance Services). 25. Amendment No. 2 to Consultant Services Agreement with Paragon Partners Consultants, Inc. for H Street Widening Project p. 847 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager to execute all documents in support of Amendment No. 2 to the Consultant Services Agreement with Paragon Partners Consultants, Inc. to extend the contract term from June 30, 2022, to December 31, 2023, for the H Street Widening between 40th Street and Kendall Drive Project. 26. Resolution Declaring Intent to Annex Territory: Community Facilities District No. 2019­1 (Maintenance Services): Annexation No. 27, Tax Zone No. 28 (SB Drake LLC) (Ward 3) p. 881 Recommendation: Adopt Resolution No. 2022­210, of the Mayor and City Council of San Bernardino, California, declaring its intention to annex territory into Community Facilities District No. 2019­1 (Maintenance Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 27) and authorizing the levy of special taxes therein. ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS 27. Mechanisms for Revenue Generation from For­Profit Events in the City (All Wards) – Council Member Sanchez p. 919 Mayor and City Council of the City of San Bernardino Page 8 CLOSED SESSION PUBLIC COMMENT CLOSED SESSION p. 920 A) CONFERENCE WITH LABOR NEGOTIATOR (Pursuant to Government Code Section 54957.6): Agency Designated Representative: City Manager Employee Organization: San Bernardino Police Management Association B) CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 Property: Carousel Mall Property, 43 acres Agency Negotiator: Robert D. Field, City Manager, or designee Negotiating Parties: SBDC (Renaissance Downtown USA/ICO Real Estate Group); Lincoln Group Under Negotiation: Price and Terms CLOSED SESSION REPORT 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, October 19, 2022, at the Feldheym Central Library located at 555 West 6th Street, San Bernardino, California 92401. Closed Session will begin at 5:30 p.m. and Open Session will begin at 7:00 p.m. CERTIFICATION OF POSTING AGENDA I, Genoveva Rocha, CMC, City Clerk for the City of San Bernardino, California, hereby certify that the agenda for the October 05, 2022 Regular Meeting of the Mayor and City Council and the Mayor and City Council acting as the Successor Agency to the Redevelopment Agency was posted on the City's bulletin board located at 201 North "E" Street, San Bernardino, California, at the Feldheym Central Library located at 555 West 6th Street, San Bernardino, California, and on the City's website sbcity.org on Friday, September 30, 2022. I declare under the penalty of perjury that the foregoing is true and correct. Mayor and City Council of the City of San Bernardino Page 9 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 three­minute limitation shall apply to each member of the public, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. No member of the public shall be permitted to "share" his/her three minutes with any other member of the public. Speakers who wish to present documents to the governing body may hand the documents to the City Clerk at the time the request to speak is made. The Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may refer any item raised by the public to staff, or to any commission, board, bureau, or committee for appropriate action or have the item placed on the next agenda of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. However, no other action shall be taken, nor discussion held by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item which does not appear on the agenda unless the action is otherwise authorized in accordance with the provisions of subdivision (b) of Section 54954.2 of the Government Code. Public comments will not be received on any item on the agenda when a public hearing has been conducted and closed. Mayor and City Council of the City of San Bernardino Page 10 PUBLIC COMMENT OPTIONS Please use ONE of the following options to provide a public comment: 1) Written comments can be emailed to publiccomments@sbcity.org. Written public comments received up to 4:00 p.m. on the day of the meeting (or otherwise indicated on the agenda) will be provided to the Mayor and City council and made part of the meeting record. They will not be read aloud unless you require an ADA accommodation. Please note: messages submitted via email and this page are only monitored from the publication of the final agenda until the deadline to submit public comments. Please contact the City Clerk at 909­384­5002 or SBCityClerk@sbcity.org for assistance outside of this timeframe. 2) Attend the meeting in person and fill out a speaker slip. Please note that the meeting Chair decides the cut­off time for public comment, and the time may vary per meeting. If you wish to submit your speaker slip in advance of the meeting, please submit your request to speak using the form on the following page: https://tinyurl.com/mccpubliccomments 3) REMOTE PARTICIPATION VIA ZOOM (For public comment only meeting will not be viewable on Zoom) a) You can use a mobile phone or a landline to dial into a Zoom meeting. i) Dial (669) 900­6833. When prompted, enter the Meeting ID: 677­845­9453 Passcode:2021 The public may begin joining the meeting on Zoom or by calling­in to be added to the speaker queue at 5:15 PM for Closed Session. Once admitted to the Zoom Public Comment meeting to request to speak at the appropriate time: ii) Dial *9 from your phone to raise your hand via Zoom If calling in staff will confirm the last four digits of the caller's phone number and unmute them, the caller must then press *6 to speak from their device. Callers are encouraged, but not required, to identify themselves by name. Each caller will be provided three (3) minutes to speak. If you are calling in, please turn your volume down on your television or other devices to limit any feedback when you speak. b) Join the Meeting by clicking on the Zoom link below: https://sbcity­org.zoom.us/j/6778459453?pwd=ZTkzdUJtcDMrbmFNQnVDSFhvaXQxZz09 Mayor and City Council of the City of San Bernardino Page 11 Meeting ID: 677 845 9453 Passcode:2021 You can also Go to Zoom.us and click "Join a Meeting" at the top. Enter the Meeting ID: 677­845­9453 Passcode:2021 Public Hearings: If you are commenting on a Public Hearing, please stay signed on to the Zoom session or sign on when the Public Hearing is announced. You will be prompted by staff when the item is being discussed. Printed on 09/30/2022 Mayor and City Council of the City of San Bernardino Page 12 PAGE INTENTIONALLY LEFT BLANK 8 2 8 PRESENTATIONS City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager Sandra Ibarra, Council Member, 2nd Ward Department:Council Office Subject:Citizen of the Month, C & F Boxing (September 2022)   Packet Pg. 13 City of San Bernardino FROM THE MAYOR AND CITY COUNCIL HONORING CC && FF BOXINGBOXING SEPTEMBERSEPTEMBER 20222022 CITIZENCITIZEN OFOF THETHE MONTHMONTH AWARDAWARD CConcerned IInvestor TTime/Talent IInvolved ZZealous EEnthusiastic NNeighborly In recognition of dedicated service to the affairs of the community and for the civic pride demonstrated by numerous deeds for the benefit of the citizens of San Bernardino Presented this 5th day of October 2022   Packet Pg. 14 8 2 9 PRESENTATIONS City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager Sandra Ibarra, 2nd Ward Council Member Department:Council Office Subject:Citizen of the Month – Harry Hatch (September 2022)   Packet Pg. 15 City of San Bernardino FROM THE MAYOR AND CITY COUNCIL HONORING HARRYHARRY HATCHHATCH SEPTEMBERSEPTEMBER 20222022 CITIZENCITIZEN OFOF THETHE MONTHMONTH AWARDAWARD CConcerned IInvestor TTime/Talent IInvolved ZZealous EEnthusiastic NNeighborly In recognition of dedicated service to the affairs of the community and for the civic pride demonstrated by numerous deeds for the benefit of the citizens of San Bernardino Presented this 5th day of October 2022   Packet Pg. 16 6 8 0 PRESENTATIONS City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager Lydie Gutfeld, Director of Parks, Recreation, and Community Services Department:Parks & Recreation Subject:Festival: Where our Cultures Connect!   Packet Pg. 17 FESTIVAL: WHERE OUR CULTURES CONNECT Lydie Gutfeld 10/5/2022   Packet Pg. 18 FESTIVAL: WHERE OUR CULTURES CONNECT Ø Festival Overview Ø Committee Ø Department Interaction Ø End Goal   Packet Pg. 19 FESTIVAL: WHERE OUR CULTURES CONNECT Ø Festival Overview Ø Saturday, October 8th Ø 10am - 6pm Ø Seccombe Lake Park   Packet Pg. 20 FESTIVAL: WHERE OUR CULTURES CONNECT Ø Eight villages that unite our City through culture, food, art, music, and fun: Ø Kids Ø Community Partners Ø Cultural Exhibits and Demonstrations Ø Merchants Global Marketplace Ø Animals Ø Artists Ø Food Ø Car Show Alley   Packet Pg. 21 Ø Three stages Ø Car show Ø Roving entertainment Ø Carnival ferris wheel Ø Beer garden Special Features   Packet Pg. 22 ENTERTAINMENT •Three Stages •Pacific Islander- HAKA •Ballet Folklorico •Mariachis •Pace Setters •African Dance and Drum •KPoP Dancers CONCERTS •Family Style Top 40s band •Bruno and the Hooligans •Jayy Roxx •Stone Soul ROVING ARTISTS •Stilt walkers •Magician •Aerialist •Balloon artists •Musicians   Packet Pg. 23 FESTIVAL: WHERE OUR CULTURES CONNECT Ø Transit and Parking ØCity Hall parking ØShuttle drop- off/Pick-up ØCounty parking areas   Packet Pg. 24 Ø A Community United Ø Sistas Making a Difference Ø Rev. Bronica Martindale Ø C.H.O.R.D.S Ø Music Changing Lives Ø SB Food Fest/For the Change Ø San Bernardino County Ø Uplift/Making Hope Happen Ø Garcia Center for the Arts Ø Arts and Historical Preservation Commissioners Ø Knock It Off & Forgive Ø Downtown SB Art Walk Ø Suavecitos Car Club   Packet Pg. 25 Ø For the Change and SB Food Fest Ø September 10th and October 1st Ø Over 50 volunteers Ø Partnership with Public Works and Parks and Recreation Ø Public Works Maintenance Efforts Ø Walking bridge painted Ø Arches painted Ø Lake clean up with water refill Ø Gravel inserts in dusty areas Ø Decomposed granite in walking paths Ø Graffiti clean ups   Packet Pg. 26 FESTIVAL: WHERE OUR CULTURES CONNECT Ø Departments Uniting Ø Parks, Recreation and Community Services Ø Information Technology Ø Animal Care Ø Police Department Ø Library Ø City Manager’s Office Ø Community Economic Development Ø Public Works   Packet Pg. 27 FESTIVAL: WHERE OUR CULTURES CONNECT Ø Event GoalsØTo connect the many cultures of San Bernardino Ø Create community through village setting Ø Introduce work and volunteer opportunities Ø Reintroduce Seccombe Lake Park Ø Engage sponsors and donors Ø Provide performer stipends Ø Develop a community partner coalition Ø Marketing beyond City lines through Committee members   Packet Pg. 28 Ø Parks & Recreation Special Event Budget $40,000 Ø Cultural Development Impact Fund $100,000 Ø Sponsorships $10,000 Funding   Packet Pg. 29 Ø OMNI Trans- 200 bus inserts, bus stops, shuttle service VALUE- $15,000 Ø T-Mobile- providing Wi-Fi throughout the event, charging stations and event swag. VALUE- $5,000 Ø Que Buena Radio- free marketing, interview session and radio play. VALUE- $3,000 Sponsorships Ø Petco- costumes for contest and animal village giveaways. VALUE- $2,500 Ø Water Dept. – mention on water bills VALUE- $500 Ø Inland Empire Health Plan- $3,000   Packet Pg. 30 Discussion   Packet Pg. 31 7 0 0 APPOINTMENTS City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Kimberly Calvin, Council Member, 6th Ward Department:Council Office Subject:Charter Review Committee Appointment (Ward 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Ms. Rakayla D. Simpson to the Charter Review Committee representing Ward 6. Ms. Simpson will replace Vicki Lee with the term ending December 2024. Council staff has verified that appointee is a registered voter within the City. Background The Charter Review Committee was established by Resolution No. 2017-243 on December 20, 2017 and is tasked with completing a periodic review of the City Charter to identify potential amendments that enhance clarity, efficiency, and the principles of the council-manager form of government. The committee comprises 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. 2021-2025 Key Strategic Targets and Goals The proposed committee 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   Packet Pg. 32 7 0 0 It is recommended that the Mayor and City Council of the City of San Bernardino, approve the appointment of Ms. Rakayla D. Simpson to the Charter Review Committee representing Ward 6 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Attachments Attachment 1 Committee Application – Ms. Rakayla D. Simpson Attachment 2 Resolution 2017-243 Ward Sixth Ward Synopsis of Previous Council Actions: December 20, 2017 Resolution No. 2017-243 establishing the Charter Review Committee was adopted.   Packet Pg. 33   Packet Pg. 34   Packet Pg. 35   Packet Pg. 36   Packet Pg. 37   Packet Pg. 38   Packet Pg. 39   Packet Pg. 40   Packet Pg. 41 7 9 4 APPOINTMENTS City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Juan Figueroa, Council Member, 3rd Ward - Mayor Pro Tempore Department:Council Office Subject:Planning Commission Appointment (Ward 3) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Ivan Garcia to the Planning Commission representing Ward 3. Mr. Garcia will replace Elizabeth Sanchez with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. 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 composed of nine (9) members who serve at the 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. 2021-2025 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 as a result of this action.   Packet Pg. 42 7 9 4 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, approve the appointment of Mr. Ivan Garcia to the Planning Commission representing Ward 3 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Attachments Attachment 1 – Commission application – Mr. Ivan Garcia Attachment 2 – Ordinance No. MC-1473 Ward: Third Ward Synopsis of Previous Council Actions: March 7, 2018 Ordinance No. MC-1473 amending Chapter 2.22 of the San Bernardino Municipal Code Related to the Planning Commission was established.   Packet Pg. 43   Packet Pg. 44   Packet Pg. 45   Packet Pg. 46   Packet Pg. 47   Packet Pg. 48   Packet Pg. 49   Packet Pg. 50 8 0 7 DISCUSSION City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager By: Nathan Freeman, Agency Director of Community, Housing, and Economic Development Department:Community, Housing, & Economic Development (CED) Subject:Adopt Ordinance No. MC-1592 (Alcoholic Beverage Sales Locational Restrictions) (All Wards) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Ordinance No. MC-1592 approving Development Code Amendment 22-04 amending Section 19.06.030(2)(B) Article II Section III(A)-(I) (Alcohol Beverage Sales – Locational Restrictions) and Section 19.06.030(2)(B) Article II Section VI(D)- (E) (Alcohol Beverage Sales – Permit Application) of the City of San Bernardino Municipal Code (Title 19) to increase the locational restriction from 500 feet to 1,000 feet for new alcoholic beverage sales activities from sensitive land uses (Attachment 1). Background An application for a convenience store with an Alcoholic Beverage Control (ABC) off- sale license requires the approval of a Conditional Use Permit by the Planning Commission. Additionally, the California Department of Alcoholic Beverage Control (ABC) has established license concentration standards allowing for a maximum of ABC off-sale licenses within the census tracts. If a new ABC off-sale license will cause the subject census tract to become over concentrated with ABC off-sale licenses, the Conditional Use Permit also requires a Public Convenience or Necessity Letter application for consideration by the Planning Commission. The Police Department reviews all Conditional Use Permits for ABC off-sale license   Packet Pg. 51 8 0 7 applications and conducts investigations based upon the information provided to report alcohol related and other crimes that have been reported during the previous calendar year within half-mile of the subject reporting district. The Police Department also provides appropriate recommended Conditions of Approval to ensure that the sale of alcohol will not be detrimental to the surrounding area. With the continued increase in the number of convenience store applications, there has also been an increase in the number of requests for ABC Type-20 (Off-Sale: Beer and Wine) and ABC Type-21 (Off-Sale: General – Beer, Wine and Distilled Spirits) Licenses. There has also been an increase in the number of census tracts with over concentrations. The overconcentration of ABC off-sale licenses creates the potential for impairing the integrity and character of the commercial corridors and may be detrimental to sensitive land uses within the vicinity, such as schools, parks and places of worship. On April 12, 2022, the Planning Commission unanimously adopted Resolution No. 2022-020, forwarding a recommendation to the Mayor and City Council recommending approval of Development Code Amendment 22-04. Under proposed Development Code Amendment 22-04, Section 19.06.030(2)(B) Article II Section III(A) (Alcohol Beverage Sales – Locational Restrictions) of the City of San Bernardino Development Code will be amended to read as follows: “(A) Unless otherwise exempted under subsections B – H, a new alcoholic beverage sales activity is not permitted within 1,000 feet of any of the following locations: 1. A public or private state licensed or accredited school. 2. A public park, playground, recreational area, or youth facility, including a nursery school, preschool, or day-care facility. 3. A place of worship or religious institution. 4. A hospital. 5. An alcohol or other drug abuse recovery or treatment facility. 6. A county social service office. (B) Establishments containing 10,000 square feet or more, including but not limited to supermarkets and drugstores, which do not sell alcoholic beverages as the principal business are exempt from the locational restrictions. (C) Sit down restaurants whose predominant function is the service of food and where the on-site sale of alcoholic beverages is incidental or secondary are   Packet Pg. 52 8 0 7 exempt from these locational restrictions. An incidental bar or lounge shall be allowed for the convenience of dining patrons. (Establishments which are primarily a bar or lounge or have a bar or lounge area as a principal or independent activity are not included in this exemption.) (D) All other establishments for on-site consumption of alcohol may be exempted from the locational restrictions, subject to evaluation of site-specific conditions through the Conditional Use Permit review process and considering recommendations from the Police Department. (E) Specialty retail establishments that offer unique product lines or variety of selection warranting a finding of public convenience or necessity are exempt from the locational restrictions. (F) An automobile service station convenience store that meets the location criteria of Section 19.06.030(2)(T) may be exempted from these locational restrictions, subject to evaluation of site-specific conditions through the Conditional Use Permit review process and considering recommendations from the Police Department. (G) A fraternal organization or veterans club may be exempted from the locational restrictions, subject to evaluation of site-specific conditions through the Conditional Use Permit review process and considering recommendations from the Police Department. (H) Temporary uses issued a Temporary License by the California Department of Alcoholic Beverage Control and established in compliance with all City laws and regulations are exempt from the locational restrictions. (I) The following location conditions will be considered in the review of Conditional Use Permit applications, and may be grounds for denial based on potential adverse effects to the public interest, health, safety or convenience: 1. A location within a crime reporting district, or within 1,000 feet of a crime reporting district, where the general crime rate exceeds the city-wide general crime rate by more than 20 percent. 2. A location where the new alcoholic beverage sales activity would be within 1,000 feet from an existing alcoholic beverage sales activity or would lead to the grouping of more than four alcoholic beverage sales activities within a 1,000-foot radius from the new alcoholic beverage sales activity.” Under proposed Development Code Amendment 22-04, Section 19.06.030(2)(B) Article II Section VI(D)-(E) (Alcohol Beverage Sales – Permit Application) of the City of San Bernardino Development Code will also be amended to read, as follows: “(D) The name, address, and telephone number, if available, of all existing schools,   Packet Pg. 53 8 0 7 parks, playgrounds or recreational areas, nonprofit youth facilities, places of worship, hospitals, alcohol or other drug abuse recovery or treatment facilities or county social service offices within 1,000 feet of the proposed alcoholic beverage sales activity establishment. (E) The name, address, and telephone number, if available, of all alcoholic beverage sale activities within 1,000 feet of the proposed alcoholic beverage sales activity establishment and within a 1,000-foot radius from the proposed alcoholic beverage sales activity establishment.” General Plan Goals and Policies The City of San Bernardino General Plan includes goals and policies to guide future Accessory Dwelling Units, as follows: Land Use Goal 2.1: Preserve and enhance San Bernardino’s unique Neighborhoods. •Land Use Element Policy 2.1.1: Actively enforce development standards, design guidelines, and policies to preserve and enhance the character of San Bernardino’s neighborhoods. •Land Use Element Policy 2.2.8: Control the location and number of community- sensitive uses, such as alcohol sales, adult bookstores and businesses, game arcades, and similar uses based on proximity to residences, schools, religious facilities, and parks. •Land Use Element Policy 2.2.9: Require Police Department review of uses that may be characterized by high levels of noise, nighttime patronage, and/or rates of crime; providing for the conditioning or control of use to prevent adverse impacts on adjacent residences, schools, religious facilities, and similar “sensitive” uses. The adoption and implementation of Development Code Amendment 22-04 is consistent with the City’s General Plan by regulating the location of alcoholic beverage sales activities in order to prevent potential negative impacts to the existing sensitive land uses and the community at-large and by minimizing the over concentration alcoholic beverage sales activities. The Police Department will continue to review applications for new alcoholic beverage sales to investigate crimes within half-mile of the respective reporting district. California Environmental Quality Act The Planning Division conducted an environmental evaluation in connection with proposed Development Code Amendment 22-04 and concluded that it is exempt from CEQA under Section 15061(b)(3) (Review for Exemption) of the CEQA Guidelines due to the fact that the proposed Development Code Amendment will not create significant effects on the environment as it increases the locational restriction from 500 feet to 1,000 feet for a new alcoholic beverage sales activity from sensitive land uses.   Packet Pg. 54 8 0 7 Discussion On August 3, 2022, the Mayor and City Council conducted a public hearing and introduced Ordinance No. MC-1592 amending Section 19.06.030(2)(B) Article II Section III(A)-(I) (Alcohol Beverage Sales – Locational Restrictions) and Section 19.06.030(2)(B) Article II Section VI(D)-(E) (Alcohol Beverage Sales – Permit Application) of the City of San Bernardino Municipal Code (Title 19) to increase the locational restriction from 500 feet to 1,000 feet for new alcoholic beverage sales activities from sensitive land uses. On September 21, 2022, the Mayor and City Council considered the proposed adoption of Ordinance No. MC-1592 as part of the Consent Calendar. Councilmember Sanchez requested to pull the item from the Consent Calendar for discussion and subsequently moved to approve, with Councilmember Shorett seconding, the proposed Development Code Amendment with modifications to the language related to exemptions from the sensitive receptor distance requirements to allow small neighborhood markets, such as “bodegitas,” to sell alcohol. A substitute motion was made by Councilmember Reynoso and seconded by Councilmember Calvin to approve staff’s recommendation. Both motions failed to pass with votes of 3 ayes and 3 nays and Mayor Valdivia abstaining from a tie breaking vote. Subsequently, Councilmember Alexander moved, and Councilmember Reynoso seconded, a request to postpone the item to the October 5, 2022, Mayor and City Council Hearing. If adopted per staff’s recommendation, Ordinance No. MC-1592 will become effective on November 5, 2022. If substantive changes are recommended, the item will need to return to City Council for consideration as a Public Hearing item at a later date. 2021-2025 Strategic Targets and Goals Development Code Amendment 22-04 aligns with Key Target No. 4- Economic Growth & Development, under 4b: Update the General Plan and Development Code. Specifically, the amendment to the Development Code for location regulations of Alcoholic beverage sales activities proposed under Development Code Amendment 22-04 will preserve the integrity of the commercial corridors, residential neighborhoods and sensitive land uses within the City. Fiscal Impact There will be no fiscal impact to the City’s General Fund with this action.   Packet Pg. 55 8 0 7 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Ordinance No. MC-1592 approving Development Code Amendment 22-04 amending Section 19.06.030(2)(B) Article II Section III(A)-(I) (Alcohol Beverage Sales – Locational Restrictions) and Section 19.06.030(2)(B) Article II Section VI(D)-(E) (Alcohol Beverage Sales – Permit Application) of the City of San Bernardino Municipal Code (Title 19) to increase the locational restriction from 500 feet to 1,000 feet for new alcoholic beverage sales activities from sensitive land uses (Attachment 1). Attachments Attachment 1 Ordinance No. MC-1592 (Development Code Amendment 22-04) - Alcoholic Beverage Sales Locational Restriction Ward: All Wards Synopsis of Previous Council Actions: August 3, 2022 - Mayor and City Council introduced Ordinance No. MC-1592 to approve Development Code Amendment 22-04. September 21, 2022 - Mayor and City Council postponed the consideration of the adoption of Ordinance No. MC-1592 to approve Development Code Amendment 22-04.   Packet Pg. 56 ORDINANCE NO. MC-1592 1 ORDINANCE NO. MC-1592 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING DEVELOPMENT CODE AMENDMENT 22-04 AMENDING SECTION 19.06.030(2)(B) ARTICLE II SECTION III(A)-(I) (ALCOHOL BEVERAGE SALES – LOCATIONAL RESTRICTIONS) AND SECTION 19.06.030(2)(B) ARTICLE II SECTION VI(D)-(E) (ALCOHOL BEVERAGE SALES – PERMIT APPLICATION) OF THE CITY OF SAN BERNARDINO MUNICIPAL CODE (TITLE 19) TO INCREASE THE LOCATIONAL RESTRICTION FROM 500 FEET TO 1,000 FEET FOR NEW ALCOHOLIC BEVERAGE SALES ACTIVITIES FROM SENSITIVE LAND USES; AND FINDING THE ORDINANCE IS EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT. WHEREAS, the last comprehensive update to the City's Development Code (Title 19) was adopted in May 1991; and WHEREAS, an application for a new convenience store with an Alcoholic Beverage Control (ABC) off-sale license requires the approval of a Conditional Use Permit by the Planning Commission. Additionally, the California Department of Alcoholic Beverage Control (ABC) has established license concentration standards allowing for a maximum of ABC off-sale licenses within the census tracts. If a new ABC off-sale license will cause the subject census tract to become over concentrated with ABC off-sale licenses, the Conditional Use Permit also requires a Public Convenience or Necessity Letter application for consideration by the Planning Commission; and WHEREAS, with the continued increase in the number of convenience store applications there has also been an increase in the number of requested ABC Type-20 (Off-Sale: Beer and Wine) and ABC Type-21 (Off-Sale: General – Beer, Wine and Distilled Spirits) Licenses. There has also been an increase in the number of census tracts with over concentrations. The over concentration of ABC off-sale licenses creates the potential for impairing the integrity and character of the commercial corridors and may be detrimental to sensitive land uses within the vicinity, such as schools, parks and places of worship; and WHEREAS, Development Code Amendment 22-04 is a City-initiated amendment to Section 19.06.030(2)(B) Article II Section III(A) (Alcohol Beverage Sales – Locational Restrictions) and Section 19.06.030(2)(B) Article II Section VI(D)-(E) (Alcohol Beverage Sales – Permit Application) of the City of San Bernardino Municipal Code (Title 19) to increase the locational restriction from 500 feet to 1,000 feet for new alcoholic beverage sales activities from sensitive land uses; and WHEREAS, the Planning Division of the Community and Economic Development Department of the City of San Bernardino has prepared Development Code Amendment 22-04 consistent with the City of San Bernardino General Plan and compliance with the City of San Bernardino Development Code; and   Packet Pg. 57 ORDINANCE NO. MC-1592 2 WHEREAS, pursuant to requirements of the California Environmental Quality Act (“CEQA”), the Planning Division of the Community and Economic Development Department evaluated Development Code Amendment 22-04 and determined that it is not a project within the meaning of State CEQA Guidelines Section 15378, and alternatively is exempt from CEQA under Section 15061(b)(3) (Review for Exemption) of the CEQA Guidelines; and WHEREAS, on April 12, 2022, the Planning Commission of the City of San Bernardino held a duly noticed public hearing to consider public testimony and the staff report, and adopted Resolution 2022-030 forwarding a recommendation of approval of Development Code Amendment 22-04 to the Mayor and City Council; and WHEREAS, notice of the August 3, 2022 public hearing for the Mayor and City Council's consideration of this proposed Ordinance was published in The Sun newspaper on July 23, 2022 in accordance with Development Code Chapter 19.52; and WHEREAS, pursuant to the requirements of Chapters 19.52 (Hearing and Appeals) and Chapter 19.42 (Development Code Amendments) of the City of San Bernardino Development Code, the Mayor and City Council have the authority to take action on Ordinance No. MC-1592. NOW THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DO ORDAIN AS FOLLOWS: SECTION 1.The above recitals are true and correct and are incorporated herein by this reference. SECTION 2.Compliance with the California Environmental Quality Act. As the decision-making body for the project, the Mayor and City Council has reviewed and considered the information contained in the administrative record for Development Code Amendment 22-04. Based upon the facts and information contained in the administrative record, including all written and oral evidence presented to the Mayor and City Council, the Mayor and City Council hereby finds, as follows: (1) The administrative record has been completed in compliance with the California Environmental Quality Act (“CEQA”), the State CEQA Guidelines, and the City’s Local CEQA Guidelines; (2) Development Code Amendment 22-04 is not a project within the meaning of Section 15378 of the State CEQA Guidelines, because it has no potential for resulting in physical change in the environment, directly or indirectly. Development Code Amendment 22-04 does not authorize any specific development within the City’s boundaries. Development Code Amendment 22-04 is exempt from CEQA because the adoption of the Development Code Amendment is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment (State CEQA Guidelines, Section 15061(b)(3)). The Development Code Amendment to increase of the locational restriction from 500 feet to 1,000 feet for a new alcoholic beverage sales activity from sensitive land uses is exempt from the requirements of CEQA under Section 15061(b)(3) (Review for Exemption) of the CEQA Guidelines due to the fact that the Development Code Amendment will not create significant   Packet Pg. 58 ORDINANCE NO. MC-1592 3 effects on the environment as it consists of updates to the alcoholic beverage sales requirements; and (3) The determination of CEQA exemption reflects the independent judgment of the Mayor and City Council. SECTION 3. FINDINGS FOR DEVELOPMENT CODE AMENDMENT 22-04: Section 19.42.050 (Findings) of the City of San Bernardino Development Code requires that Development Code Amendments meet certain findings prior to approval by the Mayor and City Council. Accordingly, the following findings are provided in support of the approval of Development Code Amendment 22-04: Finding No. 1:The proposed amendment is consistent with the General Plan. Finding of Fact:Development Code Amendment 22-04 is consistent with the General Plan, as follows: ✓Land Use Goal 2.1: Preserve and enhance San Bernardino’s unique Neighborhoods. ✓Land Use Element Policy 2.1.1: Actively enforce development standards, design guidelines, and policies to preserve and enhance the character of San Bernardino’s neighborhoods. ✓Land Use Element Policy 2.2.8: Control the location and number of community-sensitive uses, such as alcohol sales, adult bookstores and businesses, game arcades, and similar uses based on proximity to residences, schools, religious facilities, and parks. ✓Land Use Element Policy 2.2.9: Require Police Department review of uses that may be characterized by high levels of noise, nighttime patronage, and/or rates of crime; providing for the conditioning or control of use to prevent adverse impacts on adjacent residences, schools, religious facilities, and similar “sensitive” uses. The adoption and implementation of Development Code Amendment 22- 04 is consistent with the City’s General Plan by regulating the location of alcoholic beverage sales activities in order to prevent potential negative impacts to the existing sensitive land uses and the community at-large and by minimizing the overconcentration of alcoholic beverage sales activities. The Police Department will continue to review applications for new   Packet Pg. 59 ORDINANCE NO. MC-1592 4 alcoholic beverage sales to investigate crimes within a half-mile of the respective reporting district. Finding No. 2:The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the City. Finding of Fact:The adoption and implementation of Development Code Amendment 22- 04 is necessary and desirable for the development of the community and is in the interests or furtherance of the public health, safety, convenience, and general welfare. Location regulations of alcoholic beverage sales activities proposed under Development Code Amendment 22-04 will preserve the integrity of the commercial corridors, residential neighborhoods and sensitive land uses within the City. SECTION 4.Section 19.06.030(2)(B) Article II Section III(A)-(I) (Alcohol Beverage Sales – Locational Restrictions) of the City of San Bernardino Municipal Code (Title 19) is hereby amended, in its entirety, to read as follows: “ (A)Unless otherwise exempted under subsections B – H, a new alcoholic beverage sales activity is not permitted within 1,000 feet of any of the following locations: 1. A public or private state licensed or accredited school. 2. A public park, playground, recreational area, or youth facility, including a nursery school, preschool, or day-care facility. 3. A place of worship or religious institution. 4. A hospital. 5. An alcohol or other drug abuse recovery or treatment facility. 6. A county social service office. (B)Establishments containing 10,000 square feet or more, including but not limited to supermarkets and drugstores, which do not sell alcoholic beverages as the principal business are exempt from the locational restrictions. (C)Sit down restaurants whose predominant function is the service of food and where the on-site sale of alcoholic beverages is incidental or secondary are exempt from these locational restrictions. An incidental bar or lounge shall be allowed for the convenience of dining patrons. (Establishments which are primarily a bar or lounge or have a bar or lounge area as a principal or independent activity are not included in this exemption.) (D)All other establishments for on-site consumption of alcohol may be exempted from the locational restrictions, subject to evaluation of site-specific conditions   Packet Pg. 60 ORDINANCE NO. MC-1592 5 through the Conditional Use Permit review process and considering recommendations from the Police Department. (E) Specialty retail establishments that offer unique product lines or variety of selection warranting a finding of public convenience or necessity are exempt from the locational restrictions. (F) An automobile service station convenience store that meets the location criteria of Section 19.06.030(2)(T) may be exempted from these locational restrictions, subject to evaluation of site-specific conditions through the Conditional Use Permit review process and considering recommendations from the Police Department. (G)A fraternal organization or veterans club may be exempted from the locational restrictions, subject to evaluation of site-specific conditions through the Conditional Use Permit review process and considering recommendations from the Police Department. (H)Temporary uses issued a Temporary License by the California Department of Alcoholic Beverage Control and established in compliance with all City laws and regulations are exempt from the locational restrictions. (I) The following location conditions will be considered in the review of Conditional Use Permit applications, and may be grounds for denial based on potential adverse effects to the public interest, health, safety or convenience: 1. A location within a crime reporting district, or within 1,000 feet of a crime reporting district, where the general crime rate exceeds the city-wide general crime rate by more than 20 percent. 2. A location where the new alcoholic beverage sales activity would be within 1,000 feet from an existing alcoholic beverage sales activity, or would lead to the grouping of more than four alcoholic beverage sales activities within a 1,000 foot radius from the new alcoholic beverage sales activity.” SECTION 5.Section 19.06.030(2)(B) Article II Section VI(D)-(E) (Alcohol Beverage Sales – Permit Application) of the City of San Bernardino Municipal Code (Title 19) is hereby amended, in its entirety, to read as follows: “ (D)The name, address, and telephone number, if available, of all existing schools, parks, playgrounds or recreational areas, nonprofit youth facilities, places of worship, hospitals, alcohol or other drug abuse recovery or treatment facilities or county social service offices within 1,000 feet of the proposed alcoholic beverage sales activity establishment.   Packet Pg. 61 ORDINANCE NO. MC-1592 6 (E) The name, address, and telephone number, if available, of all alcoholic beverage sale activities within 1,000 feet of the proposed alcoholic beverage sales activity establishment and within a 1000 foot radius from the proposed alcoholic beverage sales activity establishment.” SECTION 6.Notice of Exemption: The Planning Division of the Community and Economic Development Department is hereby directed to file a Notice of Exemption with the County Clerk of the County of San Bernardino within five (5) working days of final project approval certifying the City’s compliance with the California Environmental Quality Act in approving the Project. SECTION 7.Severability: If any section, subsection, subdivision, sentence, or clause or phrase in this Ordinance or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. SECTION 8.Effective Date. This Ordinance shall become effective thirty (30) days after the date of its adoption. SECTION 9.Notice of Adoption. The City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under Section 36933 of the Government Code of the State of California. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of _________, 2022. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 62 ORDINANCE NO. MC-1592 7 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Ordinance No. MC-1592, introduced by the City Council of the City of San Bernardino, California at a regular meeting held on the 3rd day of August, 2022, and adopted by the City Council of the City of San Bernardino, California, at a regular meeting held on the ___ day of _________, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ IBARRA FIGUEROA SHORETT REYNOSO CALVIN ALEXANDER WITNESS my hand and official seal of the City of San Bernardino this ___ day of _________, 2022. Genoveva Rocha, CMC, City Clerk   Packet Pg. 63 7 5 9 DISCUSSION City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager By: Daniel Hernandez, Agency Director of Public Works, Operations, and Maintenance Department:Public Works Subject:Ordinance Amending Chapter 9.90 of the San Bernardino Municipal Code Recommendation Read by title only, waive further reading, and introduce Ordinance No. MC-1596 of the Mayor and City Council of the City of San Bernardino, California, amending Chapter 9.90 of the San Bernardino Municipal Code, granting citation authority to security guard personnel for violations of the San Bernardino Municipal Code on City property. Background Currently, only certain security guard personnel, limited to off duty, retired, or reserve police officers employed by either the Economic Development Agency of the City or by the Inland Valley Development Agency, have the authority under the San Bernardino Municipal Code to arrest and issue notices to appear for violations of the San Bernardino Municipal Code on specified City property, including the Carousel Mall and the Norton Air Force Base, pursuant to paragraphs 1 and 10 of Section 9.90.010 f the San Bernardino Municipal Code. Discussion The Public Works Department seeks to grant citation authority to private security guard personnel retained by the City to provide security services under contract with the City for violations of the San Bernardino Municipal Code on any property owned or leased   Packet Pg. 64 7 5 9 by the City. Extending citation authority to such personnel on all City property is intended to alleviate an undue burden on City departments who currently issue citations and notices to appear for violations of the San Bernardino Municipal Code, including, but not limited to, the Code Enforcement Department and the Police Department. A draft Ordinance is included in the backup documents of this staff report, which adds a new paragraph to Section 9.90.010 of the San Bernardino Municipal Code to grant security guard personnel the ability to issue citations and notices to appear for violations of this Code occurring on any property owned or leased by the City. 2021-2025 Key Strategic Targets and Goals The proposed action aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community. The proposed action would maximize existing resources by granting security guard personnel the authority to enforce provisions of the San Bernardino Municipal Code on all City property. Fiscal Impact There is no fiscal impact related to this proposed action. Conclusion Read by title only, waive further reading, and introduce Ordinance No. MC-1596 of the Mayor and City Council of the City of San Bernardino, California, amending Chapter 9.90 of the San Bernardino Municipal Code, granting citation authority to security guard personnel for violations of the San Bernardino Municipal Code on City property. Attachments Attachment Proposed Ordinance No. MC-1596 Ward All Wards Synopsis of Previous Council Actions None   Packet Pg. 65 ORDINANCE NO. MC-1596 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING CHAPTER 9.90 OF THE SAN BERNARDINO MUNICIPAL CODE, GRANTING CITATION AUTHORITY TO SECURITY GUARD PERSONNEL FOR VIOLATIONS OF THE SAN BERNARDINO MUNICIPAL CODE ON CITY PROPERTY WHEREAS, the City San Bernardino, California (“City”) is a chartered city and municipal corporation, duly organized under the California Constitution and laws of the State of California; and WHEREAS, pursuant to the police powers delegated to it by the California Constitution, the City has the authority to enact laws which promote the public health, safety, and general welfare of its citizens; and WHEREAS, the City desires to give citation authority to security guard personnel retained by the City for violations of the San Bernardino Municipal Code on City property; WHEREAS, the City is not changing any regulations or penalties associated with violations of the San Bernardino Municipal Code; and WHEREAS, the granting of citation authority to security guard personnel retained by the City could maximize resources and reduce the burdens of other City departments who currently issue citations and notices to appear for violations of the San Bernardino Municipal Code, including, but not limited to, the Code Enforcement Department and the Police Department. THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1. The above recitals are true and correct and are hereby incorporated herein by this reference. SECTION 2. A new paragraph (19) shall be added to subsection (A) of Section 9.90.010 of Chapter 9.90 of the San Bernardino Municipal Code to state as follows: “19. Security guard personnel, including private security officers retained by the City to provide security services under contract with the City, are authorized and empowered to issue citations and notices to appear for violations of this Code occurring on any property owned or leased by the City.” SECTION 3. Effective Date. This Ordinance shall take effect thirty (30) days after its adoption. SECTION 4. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance, or any part thereof, is for any reason held to be unconstitutional,   Packet Pg. 66 Ordinance No. MC-1596 Page 2 of 3 9 6 6 such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase be declared unconstitutional. If for any reason any portion of this ordinance is found to be invalid by a court of competent jurisdiction, the balance of this ordinance shall not be affected. SECTION 5. Certification. City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California. SECTION 6. CEQA. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this XXth day of , 2022. __________________________________ John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, City Clerk Approved as to form: __________________________________ Sonia Carvalho, City Attorney   Packet Pg. 67 Ordinance No. MC-1596 Page 3 of 3 9 6 6 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-1596, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the XX day of , 2022. Ordinance No. MC-1596 was approve passed and adopted at a regular meeting held the XX day of , 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2022. ______________________________ Genoveva Rocha, CMC, City Clerk   Packet Pg. 68 Page 1 8 2 7 PUBLIC HEARING City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager By: Nathan Freeman, Agency Director of Community, Housing, and Economic Development Department:Community, Housing, & Economic Development (CED) Subject:Appeal 22-02 for Development Permit Type-P 20-08 (Ward 4) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2022-206 of the Mayor and City Council of the City of San Bernardino, California, denying Appeal 22-02, thereby upholding the Planning Commission’s finding the project categorically exempt under the California Environmental Quality Act and approval of Development Permit Type-P 20-08 allowing the development and establishment of a twenty-seven (27) unit multi-family residential complex on a parcel containing approximately 2.38 acres, located on the west side of N. Sterling Avenue (APN: 0272-372-59), between E. Marshall Boulevard and E. Lynwood Drive within the Residential Medium (RM) zone (Attachment 1). Background On July 12, 2022, Staff presented a recommendation of approval to the Planning Commission for adoption of Resolution No. 2022-038 of the Planning Commission of the City of San Bernardino, California, approving Development Permit Type-P 20-08 allowing the development and establishment of a twenty-seven (27) unit multi-family residential complex on a parcel containing approximately 2.38 acres located on the west side of N. Sterling Avenue (APN: 0272-372-59), between E. Marshall Boulevard and E. Lynwood Drive within the Residential Medium (RM) zone. The recommendation of Staff was based on the fact that the design of the multi-family residential development met the requirements of the City of San Bernardino Development Code as established in the findings of fact and subject to the recommended Conditions of Approval (Attachment 3). During the public hearing, the Planning Commission received a presentation from Staff   Packet Pg. 69 Page 2 8 2 7 and listened to public testimony including that of Neil Derry (the Appellant). After public testimony and deliberation, the Planning Commission voted to approve the project based on the findings of fact and subject to the recommended Conditions of Approval. The motion to approve was made Commissioner Sanchez and seconded by Commissioner Lopez. The motion carried by the following vote: Ayes: Guerrero, Lopez, Sanchez, and Lewis Nays: Armstead, Quiel, and Flores Abstain: None Absent: Morales Discussion Appeal On July 27, 2022, an application for appeal (Appeal 22-02) was filed by Neil Derry to appeal the Planning Commission’s approval of Development Permit Type-P 20-08 (Attachment 4), pursuant to Section 19.52.100 (Filing of Appeals) of the City of San Bernardino Development Code. The specific grounds for the appeal, as provided, are as follows: 1. The proposed 27-unit multi-family residential development project is inconsistent with the existing surrounding multi-family “ALL privately-owned” residential developments located to the west, south, and east of the proposed project site. Staff Clarification: The proposal considered by the Planning Commission was for the development of a 27-unit multi-family residential development located within the Residential Medium (RM) Zone. The recommendation for approval of the project was based on the fact that the design of the multi-family residential development met the requirements of the Development Code as established in the Findings of Fact and subject to the recommended Conditions of Approval. The proposed land use is considered as permitted “by-right” within the Residential Medium (RM) zone. Accordingly, the proposed project is subject only to a Development Permit for entitlement review of the location, design, configuration, and impact of the proposed multi-family residential development along with the associated site improvements to the Development Code Standards and Design Guidelines. During the public hearing, the Planning Commission received a public testimony and letters from The Board of Directors of the Pine Ridge Villas H.O.A., Lynda Holden resident of Pine Ridge Villas, and Neiland K. Derry (the Appellant) in which substantially the same, or similar, comments were made expressing this ground for appeal. Neither the City’s Municipal Code nor the City’s Standard Conditions of Approval require a development project to be for ownership only. 2. The proposed 27-unit multi-family residential development is not compatible with the original “Pine Ridge Villas” condominium development and violates the Owner’s Certificate of Parcel Map No. 6209, the reservation of reciprocal   Packet Pg. 70 Page 3 8 2 7 easements of use between Parcel 1 (Pine Ridge Villas condominium development) and Parcel 2 (Proposed 27-unit multi-family residential development) “including enjoyment, access, ingress and egress, and drainage” as the proposed project walls off and bifurcates Parcel 2 from Parcel 1, including current shared uses of Parcel 2 for ingress, egress, parking, and waste disposal and recycling (enjoyment of access). Staff Clarification: The original Declaration of Covenants, Conditions, and Restrictions Establishing a Plan of Condominium Ownership for Pine Ridge Villas Homeowners Association, (Document No. 80-222066) recorded in Official Records on October 1, 1980 (not attached) includes language in Section 17 (Annexation of Additional Property) that states “the real property described in Exhibit “B” or any portion thereof may be annexed to this Declaration upon written election of the declarant (or by the successors in title to such real property) made at any time and from time to time within three (3) years following the original issuance of a final subdivision public report by the California Commissioner of Real Estate for the first phase of the development.” The property referenced as Exhibit “B” in the Declaration of Covenants, Conditions, and Restrictions is described as Parcel 2 of Parcel Map 6209 in the City of San Bernardino, County of San Bernardino, State of California, as per Map Recorded in Book 58, Page 9, of Maps, in the Office of the County Recorder of said County. The property referred to as Parcel 2 in the Declaration of Covenants, Conditions, and Restrictions is the Subject Property considered under Development Permit Type-P 20-08. This property has not been annexed to the aforementioned Declaration and therefore is not a part of the Pine Ridge Villas, nor subject to the Pine Ridge Villas Declaration of Covenants, Conditions, and Restrictions. As part of the proposed project the applicant has honored the reciprocal access under Parcel Map 6209 for the shared private drive aisle by reserving a 13-foot-wide reciprocal access along the west and south sides of the subject property for the benefit of the residents of the Pine Ridge Villas (Parcel 1). Additionally, the proposed project is consistent with the policies of the City’s General Plan and complies with the Development Standards of the City of San Bernardino Development Code for the Residential Medium (RM) zone. 3. The proposed project design has not demonstrated how the multi-family development will not isolate existing access, displace planned and existing parking, eliminate three (3) solid waste receptacles and access to two (2) fire hydrants for the Pine Ridge Villas condominium development.   Packet Pg. 71 Page 4 8 2 7 Staff Clarification: a) Isolation of existing access. The project site has been designed to provide direct ingress/egress access from a single forty-five (45’) foot wide driveway located along N. Sterling Avenue. The internal site circulation has been designed to adequately accommodate on-site vehicular, emergency and trash/refuse service vehicle circulation, and access to the required off-street parking areas (garages and guest parking areas). A secondary twenty-six (26’) foot wide driveway for emergency vehicle access only is proposed along the south property line. As stated previously, the applicant has honored the reciprocal access under Parcel Map 6209 for the shared private drive aisle by reserving a 13-foot-wide access as reciprocal access at the west and south sides of the subject property (Parcel 2) for the benefit of the residents of the Pine Ridge Villas (Parcel 1). The additional 13-foot access will become a paved area to provide the residents of the adjacent Pine Ridge Villas the benefit of a fully improved 26-foot-wide access to Sterling Avenue. b) Displacement of planned and existing parking for the existing condominium development. Areas along the western and southern property lines of the unimproved project site are currently being used by the residents of the adjacent Pine Ridge Villas for vehicle parking. Although this activity is currently trespassing on the project site, the applicant is honoring the reciprocal access for the shared private drive aisle under Parcel Map 6209 by reserving and improving a 13-foot-wide expansion of the drive aisles for reciprocal access at the west and south sides of the subject property. This proposed widening benefits the residents of the Pine Ridge Villas and provides limited secondary emergency access to the proposed development. c) Elimination of existing waste receptacles. As with the current trespassing parking on the project site, the residents of the adjacent Pine Ridge Villas also currently use areas along the western and southern property lines of the unimproved project site for waste receptacle storage and service provided by Burrtec. The applicant’s representative for the proposed multi-family residential development contacted Burrtec on August 9, 2022, to inquire whether the proposed project would interfere with the Pine Ridge Villas’ trash services. Burrtec indicated that the proposed project would not interfere with the Pine Ridge Villas trash services. Furthermore, City Staff also contacted Burrtec to inquire if the existing waste receptacles that are currently located on the proposed project site can be relocated and if adequate trash services can still be provided to the Pine Ridge Villas condominium development. Burrtec indicated that they met with a representative of the Pine Ridge Villas condominium development and suggested alternative locations to store the existing waste receptacles and/or construct a new refuse enclosure so that adequate trash services can continue to be provided for the Pine Ridge Villas condominium development.   Packet Pg. 72 Page 5 8 2 7 d) Elimination of access to existing Fire Hydrants. The San Bernardino County Fire Department has reviewed the proposed project and recommended approval with conditions which are incorporated into the adopted Resolution No. 2022-038 of the Planning Commission. As part of the proposed project, the applicant will be relocating the two (2) existing fire hydrants that are currently located within the subject property to be located outside of the proposed perimeter walls in order to continue providing the Pine Ridge Villas condominium development full access to the existing two (2) fire hydrants. Additionally, the proposed project will provide two (2) new additional fire hydrants within the project site for fire prevention and suppression (Attachment 5). Applicant Response: On September 13, 2022, the applicant for Development Permit Type-P 20-08 submitted a letter, dated September 12, 2022, in response to the appellants letter (Attachment 6). Project Description Pursuant to the requirements of Chapter 19.44 (Administrative and Development Permits) and Section 19.04.020 (Permitted, Development Permitted and Conditionally Permitted Uses) of the City of San Bernardino Development Code, the applicant is requesting the approval of Development Permit Type-P 20-08 to allow the development and establishment of a twenty-seven (27) unit multi-family residential complex on a parcel containing approximately 2.38 acres located on the west side of N. Sterling Avenue (APN: 0272-372-59), between E. Marshall Boulevard and E. Lynwood Drive within the Residential Medium (RM) zone. Public Hearing Notification Notification of the public hearings for the project was completed as follows, in accordance with Section 19.52.020 (Hearing and Appeals – Application Processing) of the City of San Bernardino Development Code: June 30, 2022:Notices were mailed to the owners and tenants of properties located within 1,000 feet of the subject property, providing the nature of the request, location of the subject property, the date, time, and place of the Planning Commission meeting of July 12, 2022, for Development Permit Type-P 20-08. July 2, 2022:Legal advertisement was published in the San Bernardino Sun Newspaper. September 22, 2022: Notices were mailed to the owners and tenants of properties located within 1,000 feet of the subject property, providing the nature of the request, location of the subject property, the date, time, and place of the Mayor and City Council meeting of October 5, 2022 for Appeal 22-02 for Development Permit Type-P 20-08.   Packet Pg. 73 Page 6 8 2 7 September 24, 2022:Legal advertisement was published in the San Bernardino Sun Newspaper. Setting and Site Characteristics The project site is located on the west side of N. Sterling Avenue, between E. Marshall Boulevard and E. Lynwood Drive within the Residential Medium (RM). Table 1, below, provides a summary of the surrounding land use characteristics of the subject site and surrounding properties. TABLE 1: SITE AND SURROUNDING LAND USES LOCATION LAND USE ZONE GENERAL PLAN DESIGNATION Site Vacant Residential Medium (RM) Multiple-Family Residential North Office/Vacant Commercial General (CG-1) Commercial South Multiple-Family Residential Residential Medium (RM) Multiple-Family Residential East Sterling Park Residential Medium (RM) Multiple-Family Residential West Multiple-Family Residential Residential Medium (RM) Multiple-Family Residential Analysis The proposed twenty-seven (27) unit two-story multiple-family residential development is considered as a “Multi-Family Dwellings” residential land use pursuant to Table 04.01 (Permitted, Development Permitted, and Conditionally Permitted Uses) of the City of San Bernardino Development Code. Under the “Multi-Family” residential classification the land use is considered permitted “by-right” within the Residential Medium (RM) zone. Accordingly, the project is subject only to a Development Permit for entitlement review for the development of the proposed multi-family residential complex and associated site improvements. Pursuant to Section 19.44.030 (Applicability and Project Review) of the San Bernardino Development Code, residential projects of 12 or more units that directly abut existing residential uses within a residential zone are permitted uses, subject to the approval of a Development Permit Type-P by the Planning Commission. The proposed Residential Medium (RM) zone allows for a density of twelve (12) residential dwellings per acre. The subject property containing approximately 2.38 acres would allow up to 28 residential dwellings. Thus, the proposed twenty-seven (27) unit two-story multiple-family residential development meets the maximum allowed density for the property.   Packet Pg. 74 Page 7 8 2 7 Based off a review of the proposal it is the recommendation of Staff that the project is consistent with the policies of the City’s General Plan and complies with the Development Standards of the City of San Bernardino Development Code for the Residential Medium (RM) zone. Architecture The proposed twenty-seven (27) unit two-story multiple-family residential unit development consists of five (5) detached two-story buildings on an undeveloped/underutilized rectangular vacant parcel. The proposed multiple-family residential development has integrated a variety of materials with a distinctive contemporary Craftsman architectural design to maintain compatibility with the surrounding developments. The buildings incorporate a combination hip roof with a cross gable design comprised of roof tiles in an earth tone color. The under eaves of the gable roofs will feature a combination of Hardie backer panels with a mounded sand finish and trim to emulate a timber frame truss design, vertical and horizontal plank lap siding, and shingle siding with a staggered edge panel design throughout the various building elevations. The proposed building walls exterior design uses a combination of off-white stucco in a sand finish and horizontal lap board siding in a light brown color and stone veneer along the base of the building elevations to further break up the facades. The integrated two (2) car garages will feature sectional metal panel roll-up doors with square windows on the upper panel to allow natural lighting into the interior garage space areas. The private balconies will feature decorative wrought-iron railing and decorative exposed beams underneath the balconies that are stucco treated and painted in a dark brown color. Floor Plan The proposed twenty-seven (27) units within this multiple-family residential development are two stories with a single floor plan type that consists of three (3) bedrooms and 2½ bathrooms having a total floor living area of approximately 1,119 square feet with attached two (2) car garages approximately 441 square feet. Each unit will feature a front main entry porch, a private outdoor yard area, and two balconies on the second-floor level. Additionally, the proposed multiple-family residential development will feature a single- story common recreation building that will house an indoor recreational floor area, vestibule, leasing office, restrooms, and a mechanical/electric room. Access/Site Design/Traffic The project site has direct ingress/egress access from a single forty-five (45’) foot wide driveway located along N. Sterling Avenue. The internal site circulation has been designed to adequately accommodate on-site vehicular, emergency and trash/refuse service vehicle circulation, and access to the required off-street parking areas (garages and guest parking areas). A secondary twenty-six (26’) foot wide driveway for emergency vehicle access only is proposed along the south property line. Designated “paths of travel” have also been provided to ensure pedestrian safety.   Packet Pg. 75 Page 8 8 2 7 The City’s Traffic Engineering Division has reviewed the traffic scoping approval form prepared for the proposed project and determined, based on the number of trips generated by the project, there will be no significant impacts on the surrounding roadways or intersections since the project will generate less than 50 trips am/pm peak. Off-Street Parking Pursuant to Section 19.24.040 (Parking Standards – Number of Parking Spaces Required), based on the number of bedrooms provided for the twenty-seven (27) residential units, the proposed multiple-family residential development will require a total of sixty-eight (68) covered off-street standard parking spaces, and six (6) guest parking spaces. Each of the twenty-seven (27) residential units, as designed, will include an attached two (2) car garage for a total of fifty-four (54) standard off-street parking spaces, fourteen (14) covered carport spaces, six (6) guest parking spaces, and one (1) handicapped parking space, thereby exceeding the off-street parking requirement for the proposed multiple-family residential development. Landscaping/Outdoor Living Space The proposed project will provide all new landscaping along the project site frontage, within the parking lot areas, common outdoor open spaces and required setback areas. The landscaping has been designed for this new community to provide the tenants with two separate enjoyable common outdoor open space areas that will feature a ½ basketball court, barbecue areas, concrete picnic tables and seating areas, and tot-lot playground areas. The proposed project provides approximately 21,256 square feet of common outdoor open space areas throughout the development, with additional private outdoor open space for each residential unit that range in size from approximately 299 square feet up to 431 square feet. The total common and private open space area is approximately 30,857 square feet. Additionally, as conditioned, a new six (6’) foot high decorative split-face block wall with a stone cap will be provided along the entire west, north and south property lines behind the twenty-five (25’) foot required front setback area to shield the proposed project from the adjacent multiple- family residential uses. Furthermore, the proposed landscaping areas, as conditioned, will provide trees in a mixture of 15-gallon, 24-inch box, mature specimen trees in a 36-inch box size up to 48- inch box size, and the plants that will be 5-gallon minimum size. General Plan Goals and Policies The City of San Bernardino General Plan includes goals and policies to guide future development within the City, including the following: •General Plan Land Use Element Policy 2.2.1: Ensure compatibility between land uses and quality design through adherence to standards and regulations in the Development Code and policies and guidelines in the Community Design Element.   Packet Pg. 76 Page 9 8 2 7 •General Plan Land Use Element Goal 2.4: Enhance the quality of life and economic vitality in San Bernardino by strategic in-fill of new development and revitalization of existing development. •General Plan Land Use Element Policy 2.5.4: Require that all new structures achieve a high level of architectural design and provide a careful attention to detail. •General Plan Community Design Element Goal 5.7: Develop attractive and safe commercial, office, and industrial projects that are creatively designed and intelligently sited. The proposed Development Permit Type-P 20-08 project implements the above General Plan goals and policies in that the proposed development includes a twenty- seven (27) unit two-story multiple-family residential development that has been designed with quality architectural treatments and a varied roof lines that provide additional architectural interest. The proposed development of the site will be done in a manner that will enhance the physical and visual qualities of the subject property with significant landscaping, thereby enhancing the aesthetics of the surrounding neighborhood. Additionally, through this proposal the existing property will be transformed from an underutilized property into a development that meets the City’s housing needs, land use and community design goals, while satisfying the Development Code requirements, and will be adequately regulated through the Conditions of Approval in order to minimize potential impacts. California Environmental Quality Act (CEQA) In accordance with Section 15060 (Preliminary Review) of the California Environmental Quality Act (CEQA), the Planning Division conducted an environmental evaluation in connection with proposed Development Permit Type-P 20-08 and concluded that the proposed project is exempt under Section 15332 (In-Fill Development Projects) of CEQA Guidelines (Attachment 3), due to the fact that: (a) the project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations; (b) the proposed development occurs within city limits on a project site of no more than five (5) acres substantially surrounded by urban uses; (c) the project site has no value as habitat for endangered, rare or threatened species; (d) approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and, (e) the site can be adequately served by all required utilities and public services. Furthermore, Conditions of Approval will be imposed to alleviate potential impacts; and there are no additional potential significant environmental impacts that may result from the proposed development and establishment of the proposed project. 2021-2025 Strategic Targets and Goals Development Permit Type-P 20-08 aligns with Key Target No. 3: Improve Quality of Life. The twenty-seven (27) unit two-story multiple-family residential development will help the City meet its State mandated housing requirements and will be consistent with   Packet Pg. 77 Page 10 8 2 7 the surrounding multiple-family residential land uses by developing an underutilized parcel that has been designed to achieve visual interest and a clean landscaped site that will result in an attractive project that compliments the surrounding land uses. Fiscal Impact Development impact fees associated with the project will be approximately $329,084. City services will be provided to this project similar to other residential developments within the City and surrounding area. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2022-206 of the Mayor and City Council of the City of San Bernardino, California, denying Appeal 22-02, thereby upholding the Planning Commission’s finding the project categorically exempt under the California Environmental Quality Act and approval of Development Permit Type-P 20-08 allowing the development and establishment of a twenty-seven (27) unit multi- family residential complex on a parcel containing approximately 2.38 acres, located on the west side of N. Sterling Avenue (APN: 0272-372-59), between E. Marshall Boulevard and E. Lynwood Drive within the Residential Medium (RM) zone. Attachments Attachment 1 Resolution No. 2022-206 Attachment 2 Resolution No. 2022-206 – Exhibit A Attachment 3 Planning Commission Staff Report and Resolution No. 2022-038 dated July 12, 2022 Attachment 4 Application for Appeal 22-02 Attachment 5 Conceptual Grading Plan Attachment 6 DP-P 20-08 Applicant’s Response Letter to Appeal 22-02, dated September 12, 2022 Attachment 7 Planning Commission Minutes of July 12, 2022 Attachment 8 PowerPoint Attachment 9 Proof of Newspaper Publication Ward: Fourth Ward Synopsis of Previous Council Actions: None   Packet Pg. 78 RESOLUTION NO. 2022-206 RESOLUTION NO. 2022-206 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DENYING APPEAL 22-02, THEREBY UPHOLDING THE PLANNING COMMISSION’S FINDING THE PROJECT CATEGORICALLY EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT AND APPROVAL OF DEVELOPMENT PERMIT TYPE-P 20 -08 ALLOWING THE DEVELOPMENT AND ESTABLISHMENT OF A TWENTY-SEVEN (27) UNIT MULTI-FAMILY RESIDENTIAL COMPLEX ON A PARCEL CONTAINING A TOTAL OF APPROXIMATELY 2.38 ACRES, LOCATED ON THE WEST SIDE OF N. STERLING AVENUE (APN: 0272-372-59), BETWEEN E. MARSHALL BOULEVARD AND E. LYNWOOD DRIVE WITHIN THE RESIDENTIAL MEDIUM (RM) ZONE. WHEREAS, on December 7, 2020, pursuant to the requirements of Chapter 19.44 (Administrative and Development Permits) of the City of San Bernardino Development Code, an application for Development Permit Type-P 20-08 was duly submitted by: Property Owner/ Applicant: Mike Mahmoudi 3164 Sterling, LLC 15408 Valley Boulevard Fontana, CA 92335 APN: 0272-372-59 Lot Area: 2.38 acres Zone: Residential Medium (RM) WHEREAS, Development Permit Type-P 20-08 is a request to allow the development and establishment of a multi-family residential project consisting of twenty-seven (27) two-story units approximately 1,119 square feet on a property comprised of one (1) parcel containing a total of approximately 2.38 acres, along with the required on-site and off-site improvements; WHEREAS, the Planning Division of the Community and Economic Development Department of the City of San Bernardino has reviewed Development Permit Type-P 20-08 for consistency with the City of San Bernardino General Plan, and compliance with the City of San Bernardino Development Code; WHEREAS, pursuant to the requirements of the California Environmental Quality Act (“CEQA”), the Planning Division of the Community and Economic Development Department evaluated Development Permit Type-P 20-08 and determined that it is exempt from CEQA pursuant to a Categorical Exemption (listed in CEQA Guidelines Article 19, commencing with Section 15300) and the application of that Categorical Exemption is not barred by one of the exemptions set forth in CEQA Guidelines Section 15300.2;   Packet Pg. 79 RESOLUTION NO. 2022-206 WHEREAS, on June 22, 2022, pursuant to the requirements of Section 19.44.030 (Project Review) of the City of San Bernardino Development Code, the Development and Environmental Review Committee reviewed the application and moved Development Permit Type-P 20 -08 to the Planning Commission for consideration; WHEREAS, on July 2, 2022, pursuant to the requirements of Section 19.52.020 (Hearings and Appeals – Application Processing) of the City of San Bernardino Development Code, the City gave public notice by advertising in the San Bernardino Sun, a newspaper of general circulation within the City of San Bernardino, and by mailing notices to the property owners and tennats within 1,000 feet of the subject property of the holding of a public hearing at which the Environmental Determination and Development Permit Type-P 20 -08 would be considered; WHEREAS, on July 12, 2022, pursuant to the requirements of Section 19.52.040 (Hearings and Appeals – Hearing Procedures) of the City of San Bernardino Development Code, the Planning Commission held the duly-noticed public hearing at which interested persons had an opportunity to testify in support of, or opposition to, the Environmental Determination and Development Permit Type-P 20 -08, and at which meeting the Planning Commission considered the Environmental Determination and Development Permit Type-P 20 -08; WHEREAS, on July 12, 2022, during said duly public hearing, after public testimony and deliberation among the Planning Commissioners, Commissioner Sanchez made a motion to adopt Resolution No. 2022-038 of the Planning Commission of the City of San Bernardino, California, approving Development Permit Type-P 20-08 based on the Findings of Fact presented, and Commissioner Lopez seconded the motion; WHEREAS, the motion carried by the following vote: Ayes: Guerrero, Lopez, Sanchez, and Lewis Nays: Armstead, Quiel and Flores Abstain: None Absent: Morales WHEREAS, on July 27, 2022, pursuant to the requirements of Section 19.52.100 (Filing of Appeals) of the City of San Bernardino Development Code, Appeal 22-02 for Development Permit Type-P 20-08 was submitted by Neil Derry (the Appellant); WHEREAS, on September 24, 2022, pursuant to the requirements of Section 19.52.020 (Hearings and Appeals – Application Processing) of the City of San Bernardino Development Code, the City gave public notice by advertising in the San Bernardino Sun, a newspaper of general circulation within the City of San Bernardino, and by mailing notices to the property owners and tenants within a 1,000 foot radius of the subject property, providing the nature of the request, location of the subject property, the date, time, and place of the holding of a public hearing for the Mayor and City Council at which the proposed Resolution No. 2022-XXX for Appeal 22-02 for Development Permit Type-P 20 -08 would be considered; and   Packet Pg. 80 RESOLUTION NO. 2022-206 WHEREAS, pursuant to the requirements of Chapter 19.52 (Hearings and Appeals), and Chapter 19.44 (Administrative and Development Permits) of the City of San Bernardino Development Code, the Mayor and City Council has the authority to take action on Appeal 22-02 for Development Permit Type-P 20-08. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Compliance with the California Environmental Quality Act. As the decision-making body for the project, the Mayor and City Council have reviewed and considered the information contained in the administrative record for Development Permit Type-P 20-08. Based upon the facts and information contained in the administrative record, including all written and oral evidence presented to the Mayor and City Council, the Mayor and City Council 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 categorically exempt from the requirements of the California Environmental Quality Act pursuant to Section 15332 (In-Fill Development Projects) of the CEQA Guidelines; (3) The application of the categorical exemption is not barred by one of the exceptions set forth in the CEQA Guidelines Section 15300.2; and (4) The determination of CEQA exemption reflects the independent judgment of the Mayor and City Council. SECTION 3. Findings of Fact – Development Permit Type-P 20-08. Section 19.44.040 (Findings) of the City of San Bernardino Development Code requires that Development Permit applications meet certain findings prior to their approval by the Planning Commission. Accordingly, the following findings are provided in support of the recommendation by the Planning Commission for the approval of Development Permit Type-P 20-08: Finding No. 1: The proposed development is permitted within the subject zoning district and complies with all applicable provisions of the Development Code, including prescribed site development standards and applicable design guidelines. Finding of Fact: The proposed development of twenty-seven (27) multi-family two-story units approximately 1,119 square feet is a permitted land use within the Residential Medium (RM) zone, subject to the approval of a Development   Packet Pg. 81 RESOLUTION NO. 2022-206 Permit with appropriate Conditions of Approval and CEQA determination. The proposed development will comply with all applicable Development Code Standards, such as parking, landscaping, building setbacks, and height, etc. The proposal under Development Permit Type-P 20-08 will also be consistent with the Residential Development Design Guidelines (Development Code Chapter 19.04) in that the proposed twenty-seven (27) multi-family two-story units with attached 2-car garages will have varied setbacks, architectural design features, garage placement and orientation, common open space and landscaping. Therefore, the proposed Project will be developed subject to all of the applicable provisions of the City of San Bernardino Development Code, including development standards and applicable design guidelines. Finding No. 2: The proposed development is consistent with the General Plan. Finding of Fact: The proposal is consistent with the Following General Plan Goals and Policies: General Plan Land Use Element Policy 2.2.1: Ensure compatibility between land uses and quality design through adherence to the standards and regulations in the Development Code and policies and guidelines in the Community Design Element. General Plan Land Use Element Goal 2.4: Enhance the quality of life and economic vitality in San Bernardino by strategic infill of new development and revitalization of existing development. General Plan Land Use Element Policy 2.5.4: Require that all new structures achieve a high level of architectural design and provide a careful attention to detail. General Plan Community Design Element Goal 5.6: Ensure that multi- family housing is attractively designed and scaled to contribute to the neighborhood and provide visual interest through varied architectural detailing. The proposed development to construct twenty-seven (27) multi-family two-story units approximately 1,119 square feet with attached 2-car garages, along with the required on-site and off-site improvements, is consistent with these General Plan Goals and Policies in that it is a strategic infill of multi-family residential development, which is a land use that is consistent with the underlying General Plan Land Use designation and surrounding residential land uses. The proposed Project will also offer additional housing opportunities in the area and revitalize underutilized, vacant properties, which is consistent with the General Plan Goals cited above. The proposed Project is also consistent with the above Community   Packet Pg. 82 RESOLUTION NO. 2022-206 Design Element Goal 5.6 in that it provides for the development of a new attractively designed multi-family housing which will contribute to the neighborhood and provide visual interest through varied contemporary Craftsman influenced architectural detailing. Additionally, the proposed Project is permitted within the Residential Medium (RM) zone subject to the approval of Development Permit Type-P 20-08 with appropriate Conditions of Approval and CEQA determination adoption by the Planning Commission, and the Residential Medium (RM) zone is consistent with the proposed Multi-Family Residential (MFR) Land Use designation set forth by the General Plan Land Use Map. Finding No. 3 The proposed development is harmonious and compatible with existing and future developments within the land use district and general area, as well as the land uses presently on the subject property. Finding of Fact: The proposed development of twenty-seven (27) multi-family two-story units approximately 1,119 square feet with attached 2-car garages, along with the required on-site and off-site improvements, will be harmonious and compatible with existing and future developments within the (Residential Medium (RM) zone and general area, in that it provides for multi-family dwelling units that are compatible in terms of building layout, design and scale to existing adjacent multiple-family homes. The surrounding area consists of a mixture of residential land uses including an office facility and park. Thus, no land use conflict is expected to result from the construction of the proposed Project, since it is consistent with the General Plan and Development Code. Finding No. 4 The approval of the Development Permit for the proposed development is in compliance with the requirements of the California Environmental Quality Act (CEQA) and Section 19.20.030(6) of the Development Code. Finding of Fact: The proposed Project has been evaluated pursuant to the State of California Environmental Quality Act (CEQA) and Section 19.20.030(6) of the Development Code and found to be in compliance with both provisions. The Project was determined to be Categorical Exempt from CEQA pursuant to Section 15332 (In-Fill Development Projects) of the State CEQA Guidelines and is in compliance with the requirements of the CEQA. Further, Conditions of Approval will be imposed to ensure that potential significant impacts upon environmental quality and natural resources are properly mitigated and as such no significant negative impacts are anticipated. Finding No. 5: There will be no potentially significant negative impacts upon environmental quality and natural resources that could not be properly mitigated and monitored.   Packet Pg. 83 RESOLUTION NO. 2022-206 Finding of Fact: In accordance with the State of California Environmental Quality Act (CEQA) Guidelines, the Planning Commission evaluated Development Permit Type-P 20 -08 for the proposed development to construct twenty- seven (27) multi-family two-story units approximately 1,119 square feet, along with the required on-site and off-site improvements and has determined that it is Categorically Exempt from CEQA pursuant to Section 15332 (In-Fill Development Projects) of the State CEQA Guidelines and there will be no potentially significant negative impacts upon environmental quality and natural resources that could not be properly mitigated and monitored through the proposed Conditions of Approval for the Project. Finding No. 6: The subject site is physically suitable for the type and density/intensity of use being proposed. Finding of Fact: The Project site is physically suitable for the type and density/intensity of the proposal to allow the development of twenty-seven (27) multi-family two-story units approximately 1,119 square feet, along with the required on- site and off-site improvements, in that the proposed project provides for a density that is permitted in the Residential Medium (RM) zone, subject to the approval of Development Permit Type-P 20 -08 with the appropriate Conditions of Approval and CEQA determination. Additionally, the proposal meets or exceeds all development standards, as well as meets the intent of the residential design standards established by the City of San Bernardino Development Code. Finding No. 7 There are adequate provisions for public access, water, sanitation, and public utilities and services to ensure that the proposed use would not be detrimental to public health and safety. Finding of Fact: There are adequate provisions for public access, public utilities, and public services for the proposed development of twenty-seven (27) multi-family two-story units approximately 1,119 square feet, along with the required on- site and off-site improvements. The site is located adjacent to and already served by existing public streets and a full range of public utilities and services. The site has direct access through a proposed forty-five (45’) foot wide driveway located on North Sterling Avenue. All agencies responsible for reviewing access and providing water, sanitation and other public services to the site have had the opportunity to review the proposal, and none indicated inability to serve the project site. All applicable Codes will apply to the proposed development. Therefore, subject to the Conditions of Approval, the proposed development under Development Permit Type-P 20-08 will not be detrimental to public services or public health and safety, subject to the Conditions of Approval.   Packet Pg. 84 RESOLUTION NO. 2022-206 Finding No. 8 The location, size, design, and operating characteristics of the proposed development would not be detrimental to the public interest, health, safety, convenience, or welfare of the City. Finding of Fact: The proposed development of twenty-seven (27) multi-family two-story units approximately 1,119 square feet, along with the required on-site and off-site improvements conforms to all applicable development standards and land use regulations of the Residential Medium (RM) zone which allows the proposed use subject to the approval of a Development Permit. Therefore, the design of the project, in conjunction with the recommended Conditions of Approval, will ensure that the proposal will not create significant noise, traffic, or other conditions or situations that may be objectionable or detrimental to other permitted uses in the vicinity of the site, nor will it be adverse to the public interest, health, safety, convenience or welfare of the City. The location, size, design and character of the proposed development will enhance the neighborhood to the benefit of the public interest and general welfare of the City. SECTION 4. Conditions of Approval. Development Permit Type-P 20-08, is hereby approved, subject to the following Conditions of Approval: 1. This approval is to allow the development of twenty-seven (27) multi-family two-story units containing approximately 1,119 square feet with attached 2-car garages, recreational building, along with the construction of the required on-site and off-site improvements. The project site is located on the west side of N. Sterling Avenue (APN: 0272-372-59), within the Residential Medium (RM) zone. 2. The project site shall be developed and maintained in accordance with: (i) the plans stamped October 5, 2022 (Exhibit “A”), approved by the City, which includes a Site Plan, Floor Plans, Conceptual-Landscaping Plan, Roof Plans, Elevation Plans, Renderings, and Grading Plans on file with the Planning Division; (ii) the Conditions of Approval contained herein; and (iii) the City’s Municipal Code regulations. 3. Within two (2) years of the original approval date, of Development Permit Type-P 20-08, the commencement of construction shall have occurred, or the permit/approval shall become null and void. In addition, if at any time after the commencement of construction, work is discontinued for a period of one (1) year, then the permit/approval shall become null and void. However, approval of the Development Permit does not authorize the commencement of construction. All necessary permits must be obtained prior to the commencement of specified construction activities included in the Conditions of Approval. EXPIRATION DATE: October 5, 2024 4. Pursuant to Section 19.44.080 (Time Extension) of the San Bernardino Development Code, the review authority may grant a time extension for Development Permit Type-P 20-08,   Packet Pg. 85 RESOLUTION NO. 2022-206 for good cause, not to exceed twelve (12) months. The applicant must file an application, the processing fees, and all required submittal items thirty (30) days prior to the expiration date. The review authority shall ensure that the project complies with all Development Code provisions in effect at the time of the requested extension. 5. In the event this approval is legally challenged, the City will promptly notify the applicant of any claim, action, or proceeding and will fully cooperate in the defense of this matter. Once notified, the applicant agrees to defend, indemnify, and hold harmless the City of San Bernardino (“City”), any departments, agencies, divisions, boards, and/or commissions of the City, and any predecessors, successors, assigns, agents, directors, elected officials, officers, employees, representatives, and attorneys of the City from any claim, action, or proceeding against any of the foregoing persons or entities. The applicant further agrees to reimburse the City for any costs or attorneys’ fees, which the City may be required by a court to pay as a result of such action, but such participation shall not relieve applicant of his or her obligation under this condition. The costs, salaries, and expenses of the City Attorney and employees of his office shall be considered “attorneys’ fees” for purposes of this condition. As part of the consideration for issuing this Subdivision and Development Permit, this condition shall remain in effect if the Subdivision and Development Permit are rescinded or revoked, whether or not at the request of applicant. Planning Division 6. A fence and wall plan shall be submitted to the Community and Economic Development Department Planning Division for review and approval. All perimeter and interior walls shall be comprised of masonry block with a decorative finish (decorative treatment shall occur on both sides) to compliment the exterior building elevation’s exterior finish and colors. All fences and walls shall be per the approved Site Plan stamped dated October 5, 2022. 7. The applicant and property owner shall be responsible for the maintenance of approved landscaping which consists of regular watering, mowing, pruning, fertilizing, clearing of debris and weeds, the removal and replacement of dead plants, and the repair and replacement of irrigation systems and integrated architectural features. 8. Construction-related activities may not occur between the hours of 8:00 pm and 7:00 am. No construction vehicles, equipment, or employees may be delivered to, or arrive at, the construction site before 7:00 am or leave the site after 8:00 pm. Construction activities shall only occur Monday through Friday. 9. The building’s exterior finish materials and colors shall be per the approved Elevation Plans stamped dated October 5, 2022. If the colors of the buildings or other exterior finish materials are to be modified beyond the current proposal and improvement requirements, the revised color scheme and/or finish materials shall be reviewed and approved by the Planning Division prior to the commencement of work.   Packet Pg. 86 RESOLUTION NO. 2022-206 10. Signs are not approved as part of this permit. Prior to establishing any new signs, the applicant and/or property owner shall submit an application and receive approval for a Sign Permit from the Planning Division. Banners, flags, pennant, and similar signs are prohibited unless a Temporary Sign Permit is obtained. 11. The applicant and/or property owner shall be responsible for regular maintenance of the project site. The site shall be maintained in a clean condition and free of litter and any other undesirable material(s). Vandalism, graffiti, trash and other debris shall be removed and cleaned up within 24 hours of being reported. 12. The project landscape plans shall be in substantial compliance with the Conceptual Landscape plan stamped dated October 5, 2022 and prepared in accordance with the City of San Bernardino Development Code, Section 19.28.120 (Water Efficient Landscaping Standards). 13. The Planting of trees and shrubs shall have plant material selected and planting methods used which are suitable for the soil and climatic conditions of the site. The sizes of the trees and plant materials for the Project site shall conform to the following mix: trees: 20% - 24 inch box, 50% - 15 gallon, 15% - mature specimen trees in 36 inch box and 15% - mature specimen trees in 48 inch box; shrubs: 80% - 5 gallon, 20% - 1 gallon; and groundcover: 100% coverage within 1 year. 14. Minor modifications to the plans shall be subject to approval by the Director pursuant to Section 19.60 (Minor Modifications). Any modification that exceeds 10% of the allowable measurable design/site considerations shall require the re-filing of the original application. 15. The project shall comply with all applicable requirements of the Building and Safety Division, Police Department, Municipal Water Department, Public Works Department, and the City Clerk’s Office/Business Registration Division. 16. This approval shall comply with the requirements of other outside agencies (i.e., San Bernardino County Health Department, Division of Environmental Health Services, San Bernardino County Consolidated Fire District, and California Board of Equalization), as applicable. 17. All exterior lighting shall be contained within property lines and be energy efficient, with the option to lower or reduce usage during night time hours. All exterior lighting shall be properly shielded or recessed so that direct glare and reflections are contained within the boundaries of the parcel, and shall be directed downward and away from all adjacent properties and public rights-of-way. 18. Submittal requirements for permit applications (site improvements, landscaping, etc.) to Building and Safety Division Plan Check and/or Land Development Division must include all Conditions of Approval issued with this approval, printed on the plan sheets.   Packet Pg. 87 RESOLUTION NO. 2022-206 19. A tree removal permit shall be required in the event that more than five (5) trees are to be cut down, uprooted, destroyed or removed within a 36-month period. 20. All mechanical equipment including HVAC condenser units shall be completely screened from public view and adjacent properties at all times. 21. Continuous concrete curbing, at least six (6”) inches high and six (6”) inches wide, shall be provided at least 3 feet from any wall, fence, property line, walkway, or structure where parking and/or drive aisles are located adjacent thereto. 22. The Project shall be required to comply with Rules 402 nuisance, and 403 fugitive dust, which require the implementation of Best Available Control Measures (BACMs) for each fugitive dust source, and the AQMP, which identifies Best Available Control Technologies (BACTs) for area sources and point sources. The BACMs and BACTs would include, but not be limited to the following: a) The Project Proponent shall ensure that any portion of the site to be graded shall be prewatered prior to the onset of grading activities. b) The Project Proponent shall ensure that watering of the site or other soil stabilization method shall be employed on an on-going basis after the initiation of any grading activity on the site. Portions of the site that are actively being graded shall be watered regularly (twice daily) to ensure that a crust is formed on the ground surface and shall be watered at the end of each workday. c) The Project Proponent shall ensure that all disturbed areas are treated to prevent erosion until the site is constructed upon. d) The Project Proponent shall ensure that landscaped areas are installed as soon as possible to reduce the potential for wind erosion. e) The Project Proponent shall ensure that all grading activities are suspended during first and second stage ozone episodes or when winds exceed 25 miles per hour. 23. To reduce emissions, all equipment used in grading and construction must be tuned and maintained to the manufacturer’s specification to maximize efficient burning of vehicle fuel. 24. The Project Proponent shall ensure that existing power sources are utilized where feasible via temporary power poles to avoid on-site power generation during construction. 25. The Project Proponent shall ensure that construction personnel are informed of ride sharing and transit opportunities. 26. All buildings on the Project Site shall conform to energy use guidelines in Title 24 of the California Administrative Code.   Packet Pg. 88 RESOLUTION NO. 2022-206 27. The operator shall maintain and effectively utilize and schedule on-site equipment in order to minimize exhaust emissions from truck idling. 28. The operator shall comply with all existing and future CARB and SCAQMD regulations related to diesel-fueled trucks, which may include among others: (1) meeting more stringent emission standards; (2) retrofitting existing engines with particulate traps; (3) use of low sulfur fuel; and (4) use of alternative fuels or equipment. 29. All electrical transformers and mechanical equipment located outdoors on the site, shall be screened from view with a solid decorative block wall or landscaping and shall not be located in any setback area. 30. All Conditions of Approval shall be completed prior to final inspection and sign-off. 31. No Final Certificate of Occupancy will be issued until all Conditions of Approval have been completed. 32. The applicant/property owner must sign and have notarized an affidavit acknowledging acceptance of the conditions of approval and return it to the Planning Division within thirty (30) days of the effective date of this approval. Public Works Department 33. Drainage and Flood Control a. All drainage from the development shall be directed to an approved public drainage facility. If not feasible, proper drainage facilities and easements shall be provided to the satisfaction of the City Engineer. b. If site drainage is to be outlet into the public street, the drainage shall be conveyed through a parkway culvert constructed in accordance with City Standard No. 400. Conveyance of site drainage over the Driveway approaches will not be permitted. c. An approved Preliminary Full-Categorical Water Quality Management Plan (WQMP) shall be required for the project entitlement. The applicant is directed to the County of San Bernardino’s Flood Control web page for the template and Technical Guidance Document. d. A Final Full-Categorical Water Quality Management Plan (WQMP) is required for this project. The applicant is directed to the County of San Bernardino’s Flood Control web page for the template and Technical Guidance Document. The Land Development Division, prior to issuance of any permit, shall approve the WQMP. A CD copy of the approved WQMP and Hydrology Study shall be required prior to grading permit issuance.   Packet Pg. 89 RESOLUTION NO. 2022-206 e. A Storm Water Pollution Prevention Plan (SWPPP) will be required. The applicant is directed to State Water Resources Control Board (SWRCB) SMART Login system. The SWPPP shall be approved by the State and a CD copy of the approved SWPPP shall be submitted to City prior to grading permit issuance. f. A "Notice of Intent (NOI)" shall be filed with the State Water Resources Control Board for construction disturbing 1 acre or more of land (including the project area, construction yards, storage areas, etc.). A WDID number issued by the State of California is required prior to the issuance of grading permit. g. The Land Development Division, prior to grading plan approval, shall approve an Erosion Control Plan. The plan shall be designed to control erosion due to water and wind, including blowing dust, during all phases of construction, including graded areas which are not proposed to be immediately built upon. h. The Land Development Division, prior to grading plan approval, shall approve an Erosion Control Plan. The plan shall be designed to control erosion due to water and wind, including blowing dust, during all phases of construction, including graded areas which are not proposed to be immediately built upon. 34. Grading and Landscaping a. The grading and on-site improvement plan shall be signed by a Registered Civil Engineer and a grading permit will be required. The grading plan shall be prepared in strict accordance with the City's "Grading Policies and Procedures" and the City's "Standard Drawings", unless otherwise approved by the Building Official. b. Pad elevations shown on the rough and/or precise grading plan shall not vary more than one-foot for interior pads or one-half foot for exterior pads from the pad elevations shown on the tentative tract map as approved by the Planning Commission. Exterior pads are those pads immediately adjacent to existing streets or existing residential areas. c. If more than 50 cubic yards of earth is to be hauled on City Streets then a special hauling permit shall be obtained from the City Engineer. Additional conditions, such as truck route approval, traffic controls, bonding, covering of loads, street cleaning, etc. may be required by the City Engineer. d. Wheel stops are not permitted by the Development Code, except at designated accessible parking spaces. Therefore, continuous 6” high curb shall be used around planter areas and areas where head in parking is adjacent to walkways. The parking spaces may be 16.5’ deep and may overhang the landscaping or walkway by 2.5’. Overhang into the setback area or into an ADA path of travel (minimum 4’ wide) is not permitted. e. Continuous concrete curbing at least 6 inches high and 6 inches wide shall be provided at least 3 feet from any wall, fence, property line, walkway, or structure where parking and/or drive aisles are located adjacent thereto. Curbing may be left out at structure access points. The space between the curb and wall, fence, property line, walkway or   Packet Pg. 90 RESOLUTION NO. 2022-206 structure shall be landscaped, except as allowed by the Development Review Committee. f. The refuse enclosure(s) shall be constructed in accordance with City Standard Drawing No. 508 with an accessible path of travel. with modification to provide ADA access (For Housing Unit or Apt). The minimum size of the refuse enclosure shall be 8 feet x 15 feet for bins storage area. Where a refuse enclosure is proposed to be constructed adjacent to spaces for parking passenger vehicles, a 3’ wide by 6 “ high concrete planter shall be provided to separate the enclosure from the adjacent parking. The placement of the enclosure and design of the planter shall preclude the enclosure doors from opening into drive aisles or impacting against adjacent parked cars. g. Retaining walls, block walls and all on-site fencing shall be designed and detailed on the Building Plan. This work shall be part of the on-site improvement permit issued by the Building Official. All masonry walls shall be constructed of decorative block with architectural features acceptable to the City Planner. h. This project is located in the high wind zone. All walls and fences shall be designed to meet current CBC requirements. All construction details shall be included on the appropriate plan. Structural calculations shall be provided for City review. i. No construction on a site shall begin before a temporary/security fence is in place and approved by the Building Official or his designee. Temporary/security fencing may not be removed until approved by the Building Official or his designee. The owner or owner’s agent shall immediately remove the temporary/security fencing upon the approval of the Building Official or his designee. Sites that contain multiple buildings shall maintain the temporary/security fencing around the portion of the site and buildings under construction as determined by the Building Official or his designee. All temporary/security fencing for construction sites shall include screening, emergency identification and safety identification and shall be kept in neat and undamaged condition. j. The on-site improvement plan shall include details of on-site lighting, including light location, type of poles and fixtures, foundation design with structural calculations, conduit location, material and size, and Photometric plot shall be provided which show that the proposed on-site lighting design will provide: • 1 foot-candle of illumination uniformly distributed over the surface of the parking lot during hours of operation, and • 0.25 foot-candles security lighting during all other hours. k. The design of on-site improvements shall also comply with all requirements of The California Building Code, Title 24, relating to accessible parking and accessibility, including retrofitting of existing building access points for accessibility, if applicable. l. An accessible path of travel shall be provided from the public way to the building entrance. All pathways shall be paved and shall provide a minimum clear width of 4 feet. feet. All accessible parking spaces shall be a minimum of 18 feet by 9 feet net. m. A reciprocal easement shall be recorded prior to grading plan approval if reciprocal drainage, access, sewer, and/or parking is proposed to cross lot lines, or a lot merger (4   Packet Pg. 91 RESOLUTION NO. 2022-206 or fewer parcels) shall be recorded to remove the interior lot lines. Merger of more than 4 parcels will require the filing of a tentative parcel map. n. The project Landscape Plan shall be reviewed and approved by the Land Development Division prior to issuance of a grading permit. Submit 3 copies to the Land Development Division for Checking. o. Prior to occupancy of any building, the developer shall post a bond to guarantee the maintenance and survival of project landscaping for a period of one year. p. The public right-of-way, between the property line and top of curb (also known as “parkway”) along adjoining streets shall be landscaped by the developer and maintained in perpetuity by the property owner. Details of the parkway landscaping shall be included in the project’s on-site landscape plan, unless the parkway area is included in a Landscape and Lighting Maintenance District, in which case, a separate landscape plan shall be provided. 35. On-site Utilities a. Design and construct all public utilities to serve the site in accordance with City Code, City Standards and requirements of the serving utility, including gas, electric, telephone, water, sewer and cable TV (Cable TV optional for commercial, industrial, or institutional uses). b. The project site shall be provided with separate water and sewer facilities so the City or the agency providing such services in the area can serve it. c. Backflow preventers shall be installed for any building with the finished floor elevation below the rim elevation of the nearest upstream manhole. d. This project is located in the sewer service area of the East Valley Water District; therefore, any necessary sewer main extension shall be designed and constructed in accordance with requirements of the East Valley Water District. e. Utility services shall be placed underground, and easements provided as required. f. Existing Utilities which interfere with new construction shall be relocated at the Developer's expense as directed by the City Engineer, except overhead lines, if required by provisions of the Development Code to be undergrounded. See Development Code Section 19.20.030 (non-subdivisions) or Section 19.30.110 (subdivisions). g. Sewers within private streets or private parking lots will not be maintained by the City but shall be designed and constructed to City Standards and inspected under a City On- Site Construction Permit. A private sewer plan designed by the Developer's Engineer and approved by the City Engineer will be required. This plan can be incorporated in the grading plan, where practical. 36. Street Improvement and Dedications   Packet Pg. 92 RESOLUTION NO. 2022-206 a. For the streets listed below, dedication of adequate street right-of-way (R.W.) per the General Plan and Municipal Code shall provide the distance from street centerline to property line and placement of the curb line (C.L.) in relation to the street centerline shall be as follows: Street Name Dedication shall be Right of Way(ft.) From Centerline Curb Widening shall be Curb Line(ft) From Centerline Sterling Avenue (0272-372-59-0000) 50’ Existing 0’ Dedication for a total ½ width of 50’ “Major Arterial” 32’± Existing None Proposed Per General Plan b. Sterling Avenue – TI = 8.5:*-** i. The street is in fair condition and no ac improvements are needed at this time. ii. When Striping, all striping shall be thermoplastic paint per section 84 of the Caltrans specifications. iii. The existing curb & gutter, sidewalk, and driveway fronting the site are in poor condition, replace curb & gutter panels, sidewalk panels, and driveways that are lifted, cracked, or do not meet current ADA requirements shall be replaced. iv. Remove existing driveways that are not being used under the project plans and replace with Curb Gutter and Sidewalk per city Standards. v. Construct Commercial Driveway Approach per City Standard No. 204, Type II, including an accessible by-pass around the top of the drive approach. Minimum Width is 26’. No Driveways closer than 100’ from BCR/ECR as directed by the City Engineer. vi. When Replacing/Reconstructing Curb and Gutter panels, Construct 8" Curb and Gutter per City Standard No. 200, type “B”. vii. When Replacing or reconstructing Sidewalk panels, Construct Sidewalk per City Standard No. 202; Case "A" (6’ wide adjacent to curb). viii. Install LED Street Lights System adjacent to the site in accordance with City Standard No’s. SL-1, SL-2, and SL-3. Also, a separate light sheet shall be submitted in accordance with the City of San Bernardino Street Lighting Design Policies. Install ID Plate on Street light pole. Connect to Existing Street Light System. ix. Install type II Bike Lane per “Manual Uniform Traffic Control Devices - California”, as directed by the City Traffic Engineer. x. When Replacing/Reconstructing or Constructing sidewalk, Install 2-3” Conduit 36” under the sidewalk with pull rope and pull boxes for future Traffic connections. xi. No Parking will be allowed on Sterling Avenue, install signs per city standards.   Packet Pg. 93 RESOLUTION NO. 2022-206 xii. Survey Monuments and ties shall be placed, replaced, tied out and recorded at any corner or alignment changes that are adjacent to the project area in accordance with California Land Surveyors Association – Monument Preservation Guidelines, Copies of Recorded Monuments/Ties shall be delivered to Public Works/Engineering. * These Conditions are set for an estimated construction with-in two years. If construction exceeds two years from PC Approval these conditions shall be reviewed and updated as needed. **If a Scoping Form is required, this form shall indicate the need of a Traffic Report, the results of the traffic report shall become conditions of this project which may increase or extend the above requirements in section 1(b) and 5(a). c. With Submittal of improvement plans including but not limited to grading plans, Street improvement plans, storm drain and retention/detention basin plans, and erosion/sediment control plans, The Applicant shall cause to be formed, or shall be annexed into an existing, Community Facilities District(s) (CFD) (2018-1 Service) for landscaping, lighting, streets, drainage facilities, street sweeping, graffiti removal, or other infrastructure, as required by the City to the satisfaction of the City Engineer. The Applicant shall initiate the maintenance and benefit assessment district(s) formation, or annexation, by submitting a landowner petition and consent form (provided by the City) and deposited necessary fees concurrent with the application for street and grading plan review and approval; and said maintenance and benefit assessment district(s) shall be established concurrent with the approval of the final map in the case of the subdivision of land, or prior issuance of any certificate of occupancy where there is no subdivision of land, and as approved by the City Engineer. d. If a drainage report is required by Land Development, A second copy of the drainage report will be delivered to public works, if offsite or overflow storm drain systems are identified, all systems shall be identified on the street improvement plans, and public storm drain shall be on a separate set of plans.. e. A temporary construction encroachment permit from Public Works Department shall be required for utility cuts into existing streets or any work within City’s right-of-way. Pavement restoration or trench repair shall be in conformance with City Standard No. 310. Public facilities shall be restored or constructed back to Public Works Department satisfaction. f. Any pavement works affecting the traffic loop detectors shall be coordinated and subjected to Public Works Traffic Division requirements. g. The applicant must post a performance bond prior to issuance of the off-site permit. The amount of the bond is to be determined by Public Works Department. h. The above conditions shall comply with current codes, policies, and standards at time of construction.   Packet Pg. 94 RESOLUTION NO. 2022-206 i. Prior to Certificate of Occupancy or Completion of Project all As-builts and Centerline Ties shall be submitted to Public Works. j. The Street Improvements and Dedications herein above may be amended subject to the approval of the City Engineer. 37. Traffic Requirements a. All Traffic mitigation measures shall be implemented according to the recommendations of the City Traffic Engineer prior to Street Improvement plan approval. b. All Public Works offsite Mitigation Monitoring and Reporting Program items shall be shown with the Conditions of Approval on the last pages of Public Works Offsite Plans. c. The Traffic scope approval form is approved, and no further traffic analysis is required. 38. Integrated Waste Division a. During demolition and/or construction, services are to be provided through the City of San Bernardino’s franchised hauler Burrtec Waste Industries, Inc. b. The Site Plan dated June 10, 2022, identifies the development, and establishment of a twenty-seven (27) unit multiple-family residential development located on the west side of N. Sterling Ave., approximately 150 feet south of E. Marshall Blvd. c. Burrtec Waste’s review of the Site Plan dated 10 June 2022, identifies two refuse enclosures. The refuse enclosures are located on the north and south sides of the main entrance. They are accessed by a 28-foot wide entrance driveway with a County Fire Department hammerhead turnaround at the intersection with the north/south driveway. Based upon the information provided, the project meets or exceeds Burrtec’s minimum requirements for refuse enclosure location and accessibility. Burrtec will therefore provide the project with standard commercial collection services for trash and mixed recyclables and residential organics. Any changes to the overall project design, enclosure specifications or location, or access may adversely impact Burrtec’s ability to service the project. Any design modifications that could impact Burrtec’s service will be subject to review and approval by Burrtec. Burrtec’s review of this project is limited to determining whether it meets Burrtec’s minimum standards for waste and recycling collection services. Any comments or approvals by Burrtec are limited to these minimum standards as they relate to equipment and personnel and do not pertain to the project’s compliance with applicable federal, state and local land use and environmental laws, building codes or other applicable government regulations. Any approvals by Burrtec do not warrant or represent that Burrtec accepts any liability relative to the performance of waste and recycling collection services within this project.   Packet Pg. 95 RESOLUTION NO. 2022-206 d. Construct City Standard Plan 508 Refuse Enclosures and meet or exceed the minimum 8’-0”x 15’-0” clear interior dimensions required for the container storage area. e. Contact the Building & Safety Division to determine ADA accessibility requirements. Modifications made to refuse enclosures to meet ADA accessibility requirements shall not decrease the minimum clear interior dimensions needed for the container storage area. Modified refuse enclosures shall be reviewed and approved by the Public Works Department, the Building and Safety Division, and Burrtec Waste. f. Display the refuse enclosure’s interior dimensions on the Site Plan. g. As of January 1, 2022, Senate Bill 1383 requires multi-family housing projects to participate in a residential organics/food waste recycling program. h. Refuse enclosures within five (5) feet of combustible construction shall install an automatic fire sprinkler as approved by the Building & Safety Division and the San Bernardino County Fire Department. (See City Standard Plan 508). i. Refuse enclosure roofs shall be a minimum of eight (8) feet high interior at its lowest point, with minimal front protrusions that can be damaged during container servicing, and must extend over any open side or the rear of the refuse enclosure by at least six (6) inches or as approved by the City. j. Display clear drive aisle widths on the Site Plan. k. Burrtec Waste Truck Turning Radius – All corners and intersections on streets and driveways leading to refuse enclosures shall have a turning radius adequate for a 35- foot long, three-axle collection truck. The minimum inside curb radius shall be at least 28 feet. The minimum outside curb radius shall be at least 42 feet. All streets and driveways shall comply with applicable City standards. Burrtec Waste’s truck turning template may be obtained from the Public Works Department in PDF and CAD. l. Vertical and Horizontal Clearances – The minimum vertical clearance for collection trucks along the entire route to the refuse enclosure is fifteen (15) feet. The minimum vertical clearance in front of the refuse enclosure where the truck will empty the container shall be twenty-six (26) feet. The clear height shall be free of building overhangs, trees, and utility lines. The minimum horizontal clearance along the entire route to an enclosure is 12 feet. m. Hammerhead Turnarounds – Shall meet or exceed San Bernardino County Fire Protection District Diagram A-1.12: Hammerhead Turnaround Detail dated July 1, 2021. San Bernardino County Hammerhead detail may be obtained from the Public Works Department. n. If gated, access shall be provided by means of a key, code, or remote. o. Assembly Bill 341 Mandatory Commercial Recycling may apply.   Packet Pg. 96 RESOLUTION NO. 2022-206 p. Assembly Bill 1826 Mandatory Commercial Organics Recycling may apply. q. Senate Bill 1383 Short-Lived Climate Pollutants Reduction Act may apply. r. Upon completion, service is provided through the City of San Bernardino’s franchised hauler Burrtec Waste Industries, Inc. 111 E. Mill Street, San Bernardino, CA 92408 (909) 804-4222. 39. Required Engineering Plans a. A complete submittal for plan checking shall consist of:  street improvement plans (include engineering conditions, city standards, and cross sections in these plans).  if storm drain plans are required then public storm drains must be included on separate sheets with profiles in the street improvement plans, private storm drains shall be shown separate sheets with profiles in the on-site improvement plans.  if traffic signal modifications are required, then traffic signal plans shall be submitted on separate plan sheets included in the street improvement plans.  if signing and striping are required, then the signing and striping plan shall be on separate sheets included in the street improvement plans.  if lighting is required (more than 2) then the lighting for offsite plans shall be on separate sheets included in the street improvement plans, if two (2) or less then they can be included directly on the street improvement sheets.  CFD’s are required, the CFD Plans shall include Landscaping, Irrigation, Basins, etc. items that are included in the CFD that are not listed in the plans above, shall be on separate sheets included in the street improvement plans.  other plans as required. Piecemeal submittal of various types of plans for the same project will not be allowed.  All required supporting calculations, studies and reports must be included in the initial submittal (including but not limited to drainage studies, soils reports, structural calculations). b. All off-site improvement plans submitted for plan check shall be prepared on the City’s standard 24” x 36” sheets. A signature block (city standard block) satisfactory to the City Engineer or his designee can be found on the City Web Site http://www.sbcity.org. or http://www.ci.san- bernardino.ca.us/cityhall/publicworks/engineering_division/engineering_development _resources/default.asp. Engineering conditions of the project shall be inserted in the last pages of the plans. c. After completion of plan checking, final mylar drawings with city standard block, stamped and signed by the Registered Civil Engineer in charge, shall be submitted to the City Engineer for approval.   Packet Pg. 97 RESOLUTION NO. 2022-206 d. Electronic files of all improvement plans/drawings shall be submitted to the City Engineer. The files shall be compatible with AutoCAD 2021 and include a .dxf file of the project. Files shall be on CD and shall be submitted at the same time the final mylar drawings are submitted for approval. e. Copies of the City’s design policies and procedures and standard drawings are available at the Public Works Counter for the cost of reproduction. They are also available at no charge at the Public Works Web Site at http://www.sbcity.org or http://www.ci.san- bernardino.ca.us/cityhall/publicworks/engineering_division/design_policy_and_proce dure_documents.asp. 40. Required Engineering Permits a. Grading & On-Site improvements construction permit (LD). b. WQMP/Hydrology (THR) c. Off-Site improvement construction permit (E). d. CFD/Street Dedication permit (RP). e. Traffic Control and right-of-way permits (ROW). 41. Applicable Engineering Fees a. All plan check, permit, inspection, and impact fees are outlined on the Public Works Fee Schedule. A deposit in the amount of 100% of the estimated checking fee for each set of plans will be required at time of application for plan check. The amount of the fee is subject to adjustment at time of issuance. b. The current fee schedule is available at the Public Works Counter and at http://www.sbcity.org or http://www.ci.san- bernardino.ca.us/cityhall/publicworks/engineering_division/engineering_fee_schedul e.asp. San Bernardino County Consolidated Fire District 42. Access – 150+ feet: Roadways exceeding one hundred fifty (150) feet in length shall be approved by the Fire Department. These shall be extended to within one hundred fifty (150) feet of and shall give reasonable access to all portions of the exterior walls of the first story of any building. 43. Access – 30% slope: Where the natural grade between the access road and building is in excess of thirty percent (30%), an access road shall be provided within one hundred and fifty (150) feet of all buildings. Where such access cannot be provided, a fire protection system shall be installed. Plans shall be submitted to and approved by the Fire Department. 44. Additional Requirements: In addition to the Fire requirements stated herein, other onsite and offsite improvements may be required which cannot be determined from tentative plans at this time and would have to be reviewed after more complete improvement plans and profiles have been submitted to this office.   Packet Pg. 98 RESOLUTION NO. 2022-206 45. Building Plans: Building plans shall be submitted to the Fire Department for review and approval. 46. Combustible Protection: Prior to combustibles being placed on the project site an approved all-weather fire apparatus access surface and operable fire hydrants with acceptable fire flow shall be installed. The topcoat of asphalt does not have to be installed until final inspection and occupancy. 47. Combustible Vegetation: Combustible vegetation shall be removed as follows: a. Where the average slope of the site is less than 15% - Combustible vegetation shall be removed a minimum distance of thirty (30) feet from all structures or to the property line, whichever is less. b. Where the average slope of the site is 15% or greater - Combustible vegetation shall be removed a minimum one hundred (100) feet from all structures or to the property line, whichever is less. 48. Commercial Addressing: Commercial and industrial developments of 100,000 sq. ft or less shall have the street address installed on the building with numbers that are a minimum six (6) inches in height and with a three quarter (3/4) inch stroke. The street address shall be visible from the street. During the hours of darkness, the numbers shall be electrically illuminated (internal or external). Where the building is two hundred (200) feet or more from the roadway, additional non-illuminated contrasting six (6) inch numbers shall be displayed at the property access entrances. 49. Fire Alarm-Automatic: An automatic fire sprinkler monitoring fire alarm system complying with the California Fire Code, NFPA and all applicable codes is required. The applicant shall hire a Fire Department approved fire alarm contractor. The fire alarm contractor shall submit detailed plans to the Fire Department for review and approval. The required fees shall be paid at the time of plan submittal. 50. Fire Extinguishers: Hand portable fire extinguishers are required. The location, type, and cabinet design shall be approved by the Fire Department. 51. Fire Fee: The required fire fees shall be paid to the San Bernardino County Fire Department/Community Safety Division. 52. Fire Flow Test: Your submittal did not include a flow test report to establish whether the public water supply is capable of meeting your project fire flow demand. You will be required to produce a current flow test report from your water purveyor demonstrating that the fire flow demand is satisfied. This requirement shall be completed prior to combination inspection by Building and Safety. 53. Fire Lanes: The applicant shall submit a fire lane plan to the Fire Department for review and approval. Fire lane curbs shall be painted red. The "No Parking, Fire Lane" signs shall be installed on public/private roads in accordance with the approved plan.   Packet Pg. 99 RESOLUTION NO. 2022-206 54. Fire Sprinkler-NFPA #13: An automatic fire sprinkler system complying with NFPA Pamphlet #13 and the Fire Department standards is required. The applicant shall hire a Fire Department approved fire sprinkler contractor. The fire sprinkler contractor shall submit plans with hydraulic calculation and manufactures specification sheets to the Fire Department for review and approval. The contractor shall submit plans showing type of storage and use with the applicable protection system. The required fees shall be paid at the time of plan submittal. 55. Fuel Modification Zone: A Fuel Modification Zone (FMZ) plan designed specifically for the subject project is required and shall be designed by a consultant approved by the Fire Department. The FMZ plan shall be submitted to the Fire Department for review and approval in compliance with County standards. 56. Haz-Mat Approval: The applicant shall contact the San Bernardino County Fire Department/Hazardous Materials Division (909) 386-8401 for review and approval of building plans, where the planned use of such buildings will or may use hazardous materials or generate hazardous waste materials. 57. Hydrant Marking: Blue reflective pavement markers indicating fire hydrant locations shall be installed as specified by the Fire Department. In areas where snow removal occurs or non-paved roads exist, the blue reflective hydrant marker shall be posted on an approved post along the side of the road, no more than three (3) feet from the hydrant and at least six (6) feet high above the adjacent road. 58. Illuminated Site Diagram: The applicant shall submit for review and approval a site diagram plan to the Fire Department. The applicant shall install at each entrance to a multi- family complex an illuminated diagrammatic representation of the complex, which shows the location of each unit and each fire hydrant. 59. Inspection by the Fire Department: Permission to occupy or use the building (Certificate of Occupancy or shell release) will not be granted until the Fire Department inspects, approves and signs off on the Building and Safety job card for “Fire Final.” 60. Jurisdiction: The above referenced project is under the jurisdiction of the San Bernardino County Fire Department herein “Fire Department.” Prior to any construction occurring on any parcel, the applicant shall contact the Fire Department for verification of current fire protection requirements. All new construction shall comply with the current California Fire Code requirements and all applicable status, codes, ordinances and standards of the Fire Department. 61. Key Box: An approved Fire Department key box is required. In commercial, industrial and multi-family complexes, all swing gates shall have an approved fire department Knox Lock. 62. Override Switch: Where an automatic electric security gate is used, an approved Fire Department override switch (Knox ®) is required.   Packet Pg. 100 RESOLUTION NO. 2022-206 63. Permit Expiration: Construction permits, including Fire Condition Letters, shall automatically expire and become invalid unless the work authorized by such permit is commenced within 180 days after its issuance, or if the work authorized by such permit is suspended or abandoned for a period of 180 days after the time the work is commenced. Suspension or abandonment shall mean that no inspection by the Department has occurred with 180 days of any previous inspection. After a construction permit or Fire Condition Letter, becomes invalid and before such previously approved work recommences, a new permit shall be first obtained and the fee to recommence work shall be one-half the fee for the new permit for such work, provided no changes have been made or will be made in the original construction documents for such work, and provided further that such suspension or abandonment has not exceeded one year. A request to extend the Fire Condition Letter or Permit may be made in writing PRIOR TO the expiration date justifying the reason that the Fire Condition Letter should be extended. 64. Primary Access Paved: Prior to building permits being issued to any new structure, the primary access road shall be paved or an all-weather surface and shall be installed as specified in the General Requirement conditions, including width, vertical clearance and turnouts. 65. Private Road Maintenance: The applicant shall construct and maintain all such roads. In addition, the applicant shall provide to the Fire Department a signed maintenance agreement as detailed in the General Requirement conditions for ongoing road maintenance and snow removal (where applicable). This shall include all primary and secondary access routes that are not otherwise maintained by a public agency. 66. Residential Addressing: The street address shall be installed on the building with numbers that are a minimum of four (4) inches in height and with a one half (½) inch stroke. The address shall be visible from the street. During the hours of darkness, the numbers shall be internally and electrically illuminated with a low voltage power source. Numbers shall contrast with their background and be legible from the street. Where the building is fifty (50) feet or more from the roadway, additional contrasting four (4) inch numbers shall be displayed at the property access entrances. 67. Roof Certification: A letter from a licensed structural (or truss) engineer shall be submitted with an original wet stamp at time of fire sprinkler plan review, verifying the roof is capable of accepting the point loads imposed on the building by the fire sprinkler system design. 68. Secondary Access Paved: Prior to building permits being issued to any new structure, the secondary access road shall be paved, or an all-weather surface shall be installed as specified in the General Requirement conditions including width, vertical clearance and turnouts.   Packet Pg. 101 RESOLUTION NO. 2022-206 69. Side Yard Construction: Exterior walls of residential and accessory buildings or portions thereof shall be constructed a minimum of thirty (30) foot from all adjacent structures. All residential structures shall have interior side yards setbacks of twenty percent (20%) of lot width. 70. Spark Arrestor: An approved spark arrestor is required. Every chimney that is used in conjunction with any fireplace or any heating appliance in which solid or liquid fuel are used, shall have an approved spark arrestor visible from the ground that is maintained in conformance with the California Fire Code. 71. Sprinkler Installation Letter: The applicant shall submit a letter to the Fire Department agreeing and committing to installation of a fire protection system prior to the building inspection for drywall and insulation. 72. Standard A-3 Gates and Other Obstructions to Fire Department Access: This standard shall apply to all obstructions, access control devices, traffic calming devices, or similar systems within any roadways that serve as fire access in all new or existing residential, commercial, and industrial development. This standard does not apply to obstructions within parking aisles that do not serve as fire apparatus access roads. 73. Street Sign: This project is required to have an approved street sign (temporary or permanent). The street sign shall be installed on the nearest street corner to the project. Installation of the temporary sign shall be prior any combustible material being placed on the construction site. Prior to final inspection and occupancy of the first structure, the permanent street sign shall be installed. 74. Surface: Fire apparatus access roads shall be designed and maintained to support the imposed loads of fire apparatus and shall be surfaced so as to provide all-weather driving capabilities. Road surface shall meet the approval of the Fire Chief prior to installation. All roads shall be designed to 85% compaction and/or paving and hold the weight of Fire Apparatus at a minimum of 80K pounds. 75. Turnaround: An approved turnaround shall be provided at the end of each roadway one hundred and fifty (150) feet or more in length. Cul-de-sac length shall not exceed six hundred (600) feet; all roadways shall not exceed a 12% grade and have a minimum of forty-five (45) foot radius for all turns. In the Fire Safety Overlay District areas, there are additional requirements. 76. Water System: Prior to any land disturbance, the water systems shall be designed to meet the required fire flow for this development and shall be approved by the Fire Department. The required fire flow shall be determined by using California Fire Code. The Fire Flow for this project shall be: 1,500 GPM for a two-hour duration at 20 psi residual operating pressure. Fire Flow is based on a 8,960 sq.ft. structure. 77. Water System Certification: The applicant shall provide the Fire Department with a letter from the serving water company, certifying that the required water improvements have   Packet Pg. 102 RESOLUTION NO. 2022-206 been made or that the existing fire hydrants and water system will meet distance and fire flow requirements. Fire flow water supply shall be in place prior to placing combustible materials on the job site. 78. Water System Commercial: A water system approved and inspected by the Fire Department is required. The system shall be operational, prior to any combustibles being stored on the site. Fire hydrants shall be spaced no more than three hundred (300) feet apart (as measured along vehicular travel-ways) and no more than three hundred (300) feet from any portion of a structure. San Bernardino Municipal Water District 79. Water and Sewer service shall be obtained from East Valley Water District. SECTION 5. Notice of Exemption. The Planning Division of the Community and Economic Development Department is hereby directed to file a Notice of Exemption with the County Clerk of the County of San Bernardino within five (5) working days of final project approval certifying the City’s compliance with the California Environmental Quality Act in approving the Project. SECTION 6. Severability. If any section, subsection, subdivision, sentence, or clause or phrase in this Resolution or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Resolution or any part thereof. The Mayor and City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. SECTION 7. Effective Date. This 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 _________, 2022. John Valdivia, Mayor City of San Bernardino Attest:   Packet Pg. 103 RESOLUTION NO. 2022-206 Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 104 RESOLUTION NO. 2022-206 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2022-206, adopted by the City Council of the City of San Bernardino, California, at a regular meeting held at the ___ day of _________, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ IBARRA FIGUEROA SHORETT REYNOSO CALVIN ALEXANDER WITNESS my hand and official seal of the City of San Bernardino this ___ day of _________, 2022. Genoveva Rocha, CMC, City Clerk   Packet Pg. 105 DN DN FACP FACPFACPFACP RECREATION BUILDINGBUILDING 38 UNITSBUILDING 17 UNITSSETBACK10'-0"SETBACK10'-0"SETBACK 25'-0"8'-0"42'-0"2"18'-2" SETBACK 10'-0" AMENITIES AREABUILDING 24 UNITS250.97' PL 254.94' PL 406.67' PLMAIL BOXES SETBACK10'-0"10'-0" 4' WIDE W.I. DOOR 26' W.I. PAIR OF ROLLING GATES REFUSE ENCLOSURE REFUSE ENCLOSURE UNDERGROUND BASIN (PER CIVIL) 1/2 BASKETBALL COURT 18'-8"4'-0" SETBACK 25'-0" 6' HIGH W.I. FENCE WITH PILASTERS EXISTING 3' HIGH BLOCK DAMAGE WALL WITH W.I. FENCE ABOVE TO BE REMOVEDW.I. FENCE & PILASTERS STERLING AVENUERM 0272-372-40 RM 0272-372-23 RM 0272-372-22 RM 0272-372-19 RM 0272-372-42 RM 0272-372-18 RM 0272-372-07 RM 0272-372-01 PROPERTY LINE PROPERTY LINE EXISTING SIDEWALK TO REMAIN EXISTING CONCRETE DRIVE APRON TO BE REMOVED TO RECEIVE NEW PER STDS PROPERTY LINE EXISTING 3' HIGH BLOCK DAMAGE WALL WITH W.I. FENCE ABOVE TO BE REMOVEDUNIT TYPE A UNIT TYPE A (REVERSED) UNIT TYPE A UNIT TYPE A (REVERSED) UNIT TYPE A UNIT TYPE A (REVERSED) ACCESSIBLE UNIT TYPE A UNIT TYPE A (REVERSED) UNIT TYPE A UNIT TYPE A (REVERSED) UNIT TYPE A UNIT TYPE A (REVERSED) UNIT TYPE A UNIT TYPE A UNIT TYPE A UNIT TYPE A (REVERSED) UNIT TYPE A ACCESSIBLE LANDSCAPE AREALANDSCAPE AREALANDSCAPE AREA LANDSCAPE HARDSCAPE TYP.LANDSCAPETYP.PROPOSED 3' HIGH WALL 25'-0" PROPOSED 6' HIGH BLOCK WALL 213'-0"2"PL PL PROPOSED 6' HIGH BLOCK WALL 216'-8" PROPOSED 3' HIGH WALL 25'-0"EXISTING CONCRETE DRIVE APRON 21,421 SQ. FT. OF COMMON USABLE OUT DOOR AREA 6' HIGH W.I. DOOR ACCESSIBLE SETBACK 10'-0" 13'-0" 50'-0" UNIT TYPE A UNIT TYPE A (REVERSED) UNIT TYPE A UNIT TYPE A BUILDING 5 4 UNITS UNIT TYPE A UNIT TYPE A UNIT TYPE A (REVERSED) UNIT TYPE A BUILDING 4 4 UNITS 8,503 SF STREET DEDICATION TO CONDOMINIUM AREA 45'-0"SBCOFD A-120'-0"5'-0"SBCOFD A-120'-0"ENTRY ACCESS 2 GUEST PARKING LANDSCAPE AREA LANDSCAPE AREA LANDSCAPE AREA LANDSCAPE AREA 9'-6"5'-8"13'-0"(20' MIN.)21'-5"49'-3"23'-6"18'-0"13'-0"95'-7"13'-0"15'-2"13'-0" 32'-0" 29'-0"3'-0" UNIT TYPE A UNIT TYPE A (REVERSED)412.39' PL4 TENANT SPACES (COVERED) 1 GUEST SPACE 29'-0"25'-0"18'-0"10'-6"86'-11"3'-0"26'-0"3'-0"32'-0"115'-0"36'-0"10'-1"86'-11"5'-0"17'-0"29'-8"2'-6"25'-0"6'-11"10'-0"16'-11"PATH OF TRAVEL 6' HIGH W.I. FENCE WITH PILASTERS (4' MIN.)5'-0"2'-0"17'-0"28'-0"17'-0"2'-0"(4' MIN.)5'-0"26'-0"18'-0"41'-2"PROPOSED DRIVEWAY CONCRETE STAMPED PAVERS 29'-0"5'-0" BICYCLE PARKING 28'-2" KNOX BOX (KEY GATE SWITCH) CLR 10'-0"CLR10'-0"CLR 10'-0"CLR10'-0"13'-7"10'-0"26'-0"3'-0"7'-10"9'-0"5'-0" 3'-0"13'-0"13'-0"3'-0" HARDSCAPE TYP. HARDSCAPE TYP.13'-0"13'-0"PL1 4 AMENITIES 2-PICNIC TABLES 1-TOT LOT 4'-0"2'-0"19'-0"36'-0" PL1 4 8,503 SF STREET DEDICATION TO CONDOMINIUM AREA PER OWNER'S CERTIFICATE DATED ON 10-22-80 (PARCEL MAP No 6209) 4 -BBQ 3 -PICNIC TABLES 1 -TOT LOT Private Outdoor Area 286 SF Private Outdoor Area 284 SF Private Outdoor Area 282 SF Private Outdoor Area 316 SF Private Outdoor Area 328 SF Private Outdoor Area 298 SF Private Outdoor Area 295 SF Private Outdoor Area 290 SF Private Outdoor Area 196 SF Private Outdoor Area 197 SF Private Outdoor Area 197 SF Private Outdoor Area 196 SF Private Outdoor Area 243 SF Private Outdoor Area 244 SF Private Outdoor Area 244 SF Private Outdoor Area 244 SF Private Outdoor Area 244 SF Private Outdoor Area 244 SF Private Outdoor Area 243 SF Private Outdoor Area 243 SF Private Outdoor Area 244 SF Private Outdoor Area 244 SF Private Outdoor Area 244 SF Private Outdoor Area 244 SF Private Outdoor Area 244 SF Private Outdoor Area 244 SF Private Outdoor Area 244 SF 26'-0" 29'-0" 13'-0"13'-0"5 TENANT PARKING(COVERED)2 GUEST PARKING 2 GUEST PARKING 3 TENANT SPACES(COVERED)9'-8 1/2"13'-4"5'-0"28'-0"5'-8"2 TENANT PARKING (COVERED)80'-0"26'-0"R 28 '-0 " R 28'-0" LANDSCAPE AREA LANDSCAPE LANDSCAPE LANDSCAPE 4FT HIGH DECORATIVE W.I. FENCE BUS-506'-0"31'-0" 26'-0" PROPOSED PAIR OF 16FT WIDE x 6FT HIGH W.I. ROLLING GATES FOR EMERGENCY VEHICLE ACCESS ONLY KNOX KEY GATE SWITCH R 36'-0"PROVIDE PERVIOUS CONCRETE ACCESS FOR EVA FIRE RISER 2 2 FIRE RISER FIRE RISER2 FIRE RISER FIRE RISER FIRE RISER2 17'-0"R 28'-0"R 28'-0" 2 2 R 20'-0" 2 R 2 0 '-0 "2 2 19'-0"26'-0"13'-0"13'-0" 10'-9"BUS-50FH PROJECT SITE TOTAL 27 UNITS COVERAGE:24,567 SF (23.7%) (50% ALLOWED) PRIVATE OUTDOOR SPACE: 300 SF OR 25% WHICH EVER IS LESS REQUIRED:PROVIDED: UNIT A: 1,119 SF (25%) = 279 SF 27 UNITS = 7,533 SF.9,601 SF (PER UNIT: BALCONY 103SF AND OPEN FLOOR 197SF MIN.) PARKING ANALISYS: PARKING REQUIRED PROVIDED (3 BEDROOM UNIT) 2.5 SPACES REQ./ UNIT (27 UNITS X 2.5)68 SPACES 54 GARAGE SPACES 14 COVERED SPACES 68 PARKING SPACES GUEST 1 PER 5 UNIT (27 / 5)6 SPACES 7 PARKING SPACES GRAND TOTAL 75 PARKING SPACES INCLUDED 2 ACCESSIBLE PARKING SPACES (1) VAN ACCESSIBLE COMMON OPEN SPACE REQ. 30% OF NET SITE AREA (70,509 SF) = 21,152 SF REQUIRED 21,256 SF PROVIDED (SEE HATCH AREA) TRASH RECYCLING FOOD W. 8'-8"4'-8"8"15'-0"8"C 2020 Doug Andresen, Architect expressly reserves his common law copyright and other property rights in these plans. These plans are not to be reproduced, changed or copied in any form or manner whatsoever, nor are they to be assigned to any third party without first obtaining the express written permission and consent of Douglas Andresen, Architect.LICE NS E D ARCHI TECTSTATE OF CA L IF ORN IADou gla s Andre senC-14504 12-31-23 RENEWAL DATEC:\Users\AbrahamEsquivel\Andresen Architecture Inc\AAI -Access\Projects\3_Projects 2010-2019\2017\17-2955 Sterling Ave -28-Units\Revit\17-2955 Sterling Apts - 2021 (New_Site).rvt6/14/2022 8:59:47 AMPL1Site Plan Proposed 27-Unit Apartment Complex for: Mike Mahmoudi 10 Jun. 2022 17-2955 3164 N Sterling Ave, San Bernardino, CA 92404 1" = 20'-0" Site Plan Proposed 27-Unit Apartment Complex for: Mike Mahmoudi 3164 N Sterling Ave, San Bernardino, CA 92404 OWNER:MIKE MAHMOUDI ADDRESS:15408 VALLEY BLVD. FONTANA, CA 92335 -- CONTACT:MIKE MAHMOUDI dynamictrucks@yahoo.com PROJECT ADDRESS:3164 N STERLING AVE, SAN BERNARDINO, CA 92404 ARCHITECT:ANDRESEN ARCHITECTURE INC. 17087 ORANGE WAY FONTANA, CA 92335 (909) 355-6688 doug.andresen@aaifirm.com CIVIL:HP ENGINEERING INC. 1465 CRESTVIEW ROAD REDLANDS, CA 92374 HENRY POQUIZ (909) 335-8239 hcpoquiz@aol.com LANDSCAPE ARCHITECT: LANDSCAPE DYNAMICS (951) 264-8195 SARA ZOLL sarazoll@landscapedynamics.net BUILDING DATA: APN: 0272-372-59 ZONING:RM (MULTIPLE RESIDENTIAL) (DENSITY: 12 UNITS PER ACRE) (12 U x 2.37 AC = 28.44 U.) OCCUPANCY:GROUP R-2 / U (BUILDINGS 1,2 AND 3) GROUP B (RECREATION BUILDING) CONSTRUCTION:TYPE V-B FIRE SPRINKLERS:REQUIRED PROJECT DESCRIPTION:NEW 27 UNIT APARTMENT COMPLEX INCLUDING RECREATION BUILDING, TRASH ENCLOSURES, SITE AMENITIES, SITE LIGHTING, SITE FENCING, GATES, BLOCK WALL, LANDSCAPING. GROSS LOT SIZE:103.578.87 SQ. FT. (2.37 AC) FOOTPRINT: 24.567 SF STREET DEDICATION: 8,503 SF NET LOT SIZE:70,509 SF HARDSCAPE AREA:38,112 SF (55 %) LANDSCAPE AREA:32,397 SF (45 %) Vicinity Map Area Schedule - Unit A Name Area First Floor 411 SF Second Floor 709 SF Living Area 1,119 SF Garage 441 SF Porch 37 SF Balcony 53 SF Balcony 50 SF Non-Living Area 582 SF Sequence of Drawings - PL Number Description PL1 Site Plan PL1.2 Typ. Floor Plan Unit PL2 Elevations Bldg - 1 PL2.1 Bldg. 1 - Plans PL3 Elevations Bldg - 2, 4 & 5 PL3.1 Bldg. 2, 4 & 5 - Plans PL4 Elevations Bldg - 3 PL4.1 Bldg. 3 - Plans PL5 Recreation Building 1 of 1 Conceptual Grading Plan L1 Conceptual Landscape Plan Area Schedule - Buildings Name Area Comments Conditioned 1st. Flr. Conditioned 2nd. Flr. Total Conditioned Bldg Building 1 6,022 SF Bldg 2877 4963 7840 Building 2 3,459 SF Bldg 1644 2836 4480 Building 3 6,877 SF Bldg 3288 5672 8960 Building 4 3,459 SF Bldg 1644 2836 4480 Building 5 3,458 SF Bldg 1644 2836 4480 Reacreational 1,355 SF Bldg Footprint Area: 24,631 SF 1/8" = 1'-0" Refuse Enclosure 1 9 Feb. 2022 Planning 2 21 Apr. 2022 SBCoFD 2 2 2 2 2 2 Interior View Gate Key Entry View North-East Corner View South-East Corner View   Packet Pg. 106 FACP FACPFACPFACP DN DN CLEAN FILL SAND SECTION A CLEAN FILL SAND PAVING (SEE PLAN) NATURAL GRADE ANCHOR PER MANUFACTURER'S INSTRUCTIONS SMOOTH CONCRETE COUNTER TOP WITH 8"X8"X16" TAN SPLIT FACE CONCRETE BLOCK WITH #4 VERTS AT 24 O/C HOOK, TYP TOP & BOT BUILT IN BARBEQUE (SEE PLAN) (SOLID GROUT ALL CELLS) (1) #4 CONTINUOUS HORIZONTAL TOP & BOT 1/2" FELT EXPANSION JOINT CLEAR EPOXY SEALER 6'-0"3'-4"3'-4"2'-0"2'-0" 4"4"1'-4"6"3"2'-10"MAXA PROPANE GAS TANK BUILT-IN BBQ. 60" 6 '-0 "30"A - SIMPSON HL33PC 1/2" X 3" LONG GALVANIZED GALVANIZED STEEL CLIP ANGLE (4 PER TABLE)EXPANSION ANCHORS DETAIL A RECREATION BUILDINGBUILDING 38 UNITSBUILDING 17 UNITSAMENITIES AREABUILDING 24 UNITS250.97' PL 254.94' PL 406.67' PLREFUSE ENCLOSURE (B3-5) REFUSE ENCLOSURE (B1 & B2) 1/2 BASKETBALL COURT STERLING AVENUERM 0272-372-40 RM 0272-372-23 RM 0272-372-22 RM 0272-372-19 RM 0272-372-42 RM 0272-372-18 RM 0272-372-07 RM 0272-372-01 PROPERTY LINE UNIT TYPE A UNIT TYPE A UNIT TYPE A UNIT TYPE A UNIT TYPE A UNIT TYPE A ACCESSIBLE UNIT TYPE A UNIT TYPE A UNIT TYPE A UNIT TYPE A UNIT TYPE A UNIT TYPE A UNIT TYPE A UNIT TYPE A UNIT TYPE A UNIT TYPE A UNIT TYPE A ACCESSIBLE LANDSCAPE AREALANDSCAPE AREAPL PL ACCESSIBLE UNIT TYPE A UNIT TYPE A UNIT TYPE A UNIT TYPE A BUILDING 5 4 UNITS UNIT TYPE A UNIT TYPE A UNIT TYPE A UNIT TYPE A BUILDING 4 4 UNITS LANDSCAPE AREA UNIT TYPE A UNIT TYPE A412.39' PLPL1 4 AMENITIES 2-PICNIC TABLES 1-TOT LOT PL1 4 4 -BBQ 3 -PICNIC TABLES 1 -TOT LOT Private Outdoor Area 286 SF Private Outdoor Area 284 SF Private Outdoor Area 282 SF Private Outdoor Area 316 SF Private Outdoor Area 328 SF Private Outdoor Area 298 SF Private Outdoor Area 295 SF Private Outdoor Area 290 SF Private Outdoor Area 196 SF Private Outdoor Area 197 SF Private Outdoor Area 197 SF Private Outdoor Area 196 SF Private Outdoor Area 243 SF Private Outdoor Area 244 SF Private Outdoor Area 244 SF Private Outdoor Area 244 SF Private Outdoor Area 244 SF Private Outdoor Area 244 SF Private Outdoor Area 243 SF Private Outdoor Area 243 SF Private Outdoor Area 244 SF Private Outdoor Area 244 SF Private Outdoor Area 244 SF Private Outdoor Area 244 SF Private Outdoor Area 244 SF Private Outdoor Area 244 SF Private Outdoor Area 244 SF (2) PARK BENCH 5 PL1.1 1 PL1.1 4 PL1.1 2 PL1.1 4 PL1.1 2 PL1.1 2'-6"3-1/8" x 12" GLB 2" DIA GALV. PIPE 1'-3" 1'-3" DIA CONC. 1'-0"6'-0"1'-0" 1"4"1" 3/165"5" 1/4" STEEL PLATE PLAN SECTION (4) 3/4" DIA X 2" LONG LAG SCREWS C 2020 Doug Andresen, Architect expressly reserves his common law copyright and other property rights in these plans. These plans are not to be reproduced, changed or copied in any form or manner whatsoever, nor are they to be assigned to any third party without first obtaining the express written permission and consent of Douglas Andresen, Architect.LICE NS E D ARCHI TECTSTATE OF CA L IF ORN IADou gla s Andre senC-14504 12-31-23 RENEWAL DATEC:\Users\AbrahamEsquivel\Andresen Architecture Inc\AAI -Access\Projects\3_Projects 2010-2019\2017\17-2955 Sterling Ave -28-Units\Revit\17-2955 Sterling Apts - 2021 (New_Site).rvt6/14/2022 8:17:26 AMPL1.1Site - Amenities Proposed 27-Unit Apartment Complex for: Mike Mahmoudi 10 Jun. 2022 17-2955 3164 N Sterling Ave, San Bernardino, CA 92404 1 Barbeque 2 Concrete Picnic Table 3 Playground Rules 4 Tot Lot Playground Area 1" = 20'-0" Site Plan - Amenities 5 Park Bench Detail   Packet Pg. 107 DWDWREF.FACPDWWHDN First Floor T.P.1 9'-1"1'-1"8'-0"DUCT SPACE First Floor T.P.1 8'-0"9'-1"1'-1"DUCT SPACE 10"FIXED WOOD SHELF AT 46" A.F.F. (MAX) / Living CP 9'-0" / Kitchen/Dine SV 8'-0" / Garage CN 9'-0" / Powder SV 8'-0" / Hall CP 8'-0" / Kitchen/Dine SV 8'-0" / Living CP 9'-0" / Garage CN 9'-0" / Hall CP 8'-0" / Powder SV 8'-0"41'-0"3'-0"21'-8" (TYP. UNIT)AIR 1" (ACCESSABLE) 21'-8" (TYP. UNIT) PL1.2 1 PL1.2 2 5040 4040 4040 5040 2040 H 2040 H 2040 H 12'-5"9'-3"AIR 1"9'-3"12'-5" 4'-4"10'-2"ELECTRICAL ROOM FIRE RISER ROOM 2040 H 2040 H KNOX BOX GAS METERS 4'-0"2" SLOPE2" SLOPEDN 7.75" MAXDN 0.5" MAXDN 7.7.5" MAXDN 1/2" MAXx Master Bed 10'-11"12'-5" x Balcony 5'-11"7'-9" x M. Bath 10'-4"8'-4" x Hallway 3'-4" x Bath #2 5'-0"7'-10" x M. WIC 8'-4"4'-6" x Bed #3 10'-0"10'-1" x Bed #2 10'-1"10'-0" x Laundry 6'-6"2'-7" 21'-8"3'-0"32'-6"6'-4"5'-1"36'-9"3050 H 2040 H 4040 x Balcony 4'-10"-9'-9" 2040 H 6068 T C 2020 Doug Andresen, Architect expressly reserves his common law copyright and other property rights in these plans. These plans are not to be reproduced, changed or copied in any form or manner whatsoever, nor are they to be assigned to any third party without first obtaining the express written permission and consent of Douglas Andresen, Architect.LICE NS E D ARCHI TECTSTATE OF CA L IF ORN IADou gla s Andre senC-14504 12-31-23 RENEWAL DATEC:\Users\AbrahamEsquivel\Andresen Architecture Inc\AAI -Access\Projects\3_Projects 2010-2019\2017\17-2955 Sterling Ave -28-Units\Revit\17-2955 Sterling Apts - 2021 (New_Site).rvt6/14/2022 8:17:29 AMPL1.2Typ. Floor Plan Unit Proposed 27-Unit Apartment Complex for: Mike Mahmoudi 10 Jun. 2022 17-2955 3164 N Sterling Ave, San Bernardino, CA 92404 1/2" = 1'-0" Kitchen - Typ. Unit 1/2" = 1'-0" Kitchen - Accessible Unit 1/4" = 1'-0" First Floor - Typ. 1/4" = 1'-0" Second Floor - Typ. Unit   Packet Pg. 108 First Floor Second Floor T.P.2 T.P.126'-0"M1 M7 M3 M6M33'-6"3040 H 3040 H 2040 H 2040 H 2040 H 4040 2040 H 40404040504050404040 2040 H 40402040 H 4040 40402040 H 2040 H 2040 H 5040 5040 2040 H 4040 9'-1"9'-1"M2 M1 M2 5040 5040 2040 H 2040 H 2040 H 2040 H 2040 H 4040 50404040404024'-6"First Floor Second Floor T.P.2 T.P.19'-1"M1 M3 M1 M6M4M3 ? M2 M1 M2 M8 M2 M3 M3M2 ? 2040 H 2040 H 2040 H 2050 H 2050 H 2050 H 3036 First Floor Second Floor T.P.2 T.P.1 9'-1"9'-1"M2 M1M2 M9 M2 M342" MIN.M3M1 M7 M3M7M5 40403050 H 404040403050 H 40404040 M5M3 M7 M1 M1 M9 M9 M3 M1M2 M5 M2 M3 M9 FINISH SURFACE BALCONY First Floor Second Floor T.P.2 T.P.19'-1"2040 H 2040 H 2040 H 2040 H 3016 T 3060 H 2040 H 2040 H 2040 H 2040 H 2040 H M7 M1 M5 M6M3 M2 M3 M1 M3 M7M3 9'-1"C 2020 Doug Andresen, Architect expressly reserves his common law copyright and other property rights in these plans. These plans are not to be reproduced, changed or copied in any form or manner whatsoever, nor are they to be assigned to any third party without first obtaining the express written permission and consent of Douglas Andresen, Architect.LICE NSE D ARCHI TECTSTATEOF CAL IFOR N IADou gla s Andre senC-14504 12-31-23 RENEWAL DATEC:\Users\AbrahamEsquivel\Andresen Architecture Inc\AAI - Access\Projects\3_Projects 2010-2019\2017\17-2955 Sterling Ave - 28-Units\Revit\17-2955 Sterling Apts - 2021 (New_Site).rvt6/14/2022 8:17:49 AMPL2Elevations Bldg - 1 Proposed 27-Unit Apartment Complex for: Mike Mahmoudi 10 Jun. 2022 17-2955 3164 N Sterling Ave, San Bernardino, CA 92404 Material Legend - Elevation Mark Name/Description Manufacturer Model M1 ROOF TILES BORAL "CASA GRANDE BLEND" BARCELONA PROFILE M2 FASCIAL/TRIM DUNN EDWARDS - PAINT "EXPRESSO MACCHIATO" DET680 M3 MAIN COLOR DUNN EDWARDS - PAINT "PUEBLO WHITE" DET675 M4 ENTRY DOOR DUNN EDWARDS - PAINT "CHERRY COLA" DEA156 M5 GARAGE DOOR DUNN EDWARDS - PAINT "WHITE PICKET FENCE" DET648 M6 STONE VENEER BORAL CULTURED STONE "HIGH DESERT" USED BRICK PROFILE M7 HORIZONTAL SIDING DUNN EDWARDS - PAINT DE6214 M8 RAKE SIDING DUNN EDWARDS - PAINT "PUEBLO WHITE" DET675 M9 SHUTTERS & GUARDRIALS DUNN EDWARDS - PAINT NIGHT NIGHT "DE5937" 3/16" = 1'-0" West Elevation - Front 3/16" = 1'-0" North Elevation - Left 3/16" = 1'-0" East Elevation - Rear 3/16" = 1'-0" South Elevation - Right   Packet Pg. 109 DWREF.DWREF.DWREF.DWREF.FACPDWDWREF.DWREF.DWWHDWWHDWWHDWWHDWWHDWWHDWWHDNDNDNDNDNDNDN x Living 13'-1"12'-0" x Garage 20'-0"21'-1"x Garage 20'-0"21'-1" x Kitchen/Dine 10'-10"9'-0" x Living 13'-1"12'-0"x Living 13'-1"12'-0" x Garage 20'-0"21'-1" x Kitchen/Dine 10'-10"9'-0"x Kitchen/Dine 10'-10"9'-0" x Living 13'-1"12'-0" x Garage 20'-0"21'-1" x Kitchen/Dine 10'-10"9'-0" 4040 50405040 4040 5040 x Powder 4'-7"5'-7"x Powder 4'-7"5'-7"x Powder 4'-7"5'-7"x Powder 4'-7"5'-7" 4'-4" 5040 2040 H 2040 H 2040 H 2040 H 2040 H 40404040 5040 4040 3036 2050 H 2050 H 2050 H 6"41'-0"2'-10"1"21'-8"1"21'-8"1'-6"1"21'-8"1"21'-8"1"21'-8"8 1/2"21'-8"1"21'-8"6"37'-0"4'-0"x Kitchen/Dine 10'-10"9'-0" x Living 13'-1"12'-0"x Living 13'-1"12'-0" x Garage 20'-0"21'-1"x Garage 20'-0"21'-1" x Kitchen/Dine 10'-10"9'-0" x Living 13'-1"12'-0" x Kitchen/Dine 10'-10"9'-0" x Garage 20'-0"21'-1" ELECTRICAL ROOM FIRE RAISER ROOM 4040 4040 50405040 152'-2" x Master Bed 10'-11"12'-5" x Bed #2 10'-1"10'-0" x Bed #3 10'-0"10'-1"x Bed #3 10'-0"10'-1" x Balcony 4'-10"-9'-9" x Bath #2 5'-0"7'-10" x M. Bath 10'-4"8'-4" x M. Bath 10'-4"8'-4" x Master Bed 10'-11"12'-5"x Master Bed 10'-11"12'-5" x Bed #2 10'-1"10'-0"x Bed #2 10'-1"10'-0" x Balcony 4'-10"-9'-9"x Balcony 4'-10"-9'-9" x Bed #3 10'-0"10'-1" x Bath #2 5'-0"7'-10"x Bath #2 5'-0"7'-10" x M. Bath 10'-4"8'-4" x Master Bed 10'-11"12'-5" x Bed #3 10'-0"10'-1" x Bed #2 10'-1"10'-0" x Balcony 4'-10"-9'-9" x M. Bath 10'-4"8'-4" x Bath #2 5'-0"7'-10" x Laundry 6'-6"2'-7" 6068 T 3050 H 2040 H 2040 H 2040 H 2040 H 40402040 H x Master Bed 10'-11"12'-5" x Balcony 5'-11"7'-9" x Bed #2 10'-1"10'-0" x Bed #3 10'-0"10'-1" x M. Bath 10'-4"8'-4" x Bath #2 5'-0"7'-10" 2040 H 2040 H 2040 H 2040 H 2040 H 4040 6068 T 4040 6068 T 6068 T 4040 4040 2040 H 3040 H 3040 H 2040 H x Bed #3 10'-0"10'-1" x Master Bed 10'-11"12'-5"x Master Bed 10'-11"12'-5" x Bed #2 10'-1"10'-0"x Bed #2 10'-1"10'-0" x M. Bath 10'-4"8'-4" x Balcony 5'-11"7'-9"x Balcony 5'-11"7'-9"x Balcony 5'-11"7'-9" 1"21'-8"1"21'-8"1"21'-8"1"21'-8"21'-8"1"21'-8"1"21'-8"6'-4"32'-6"x Bed #3 10'-0"10'-1" x M. Bath 10'-4"8'-4" x Balcony 5'-11"7'-9" x Balcony 4'-10"-9'-9"x Balcony 4'-10"-9'-9"x Balcony 4'-10"-9'-9" x Balcony 5'-11"7'-9"x Balcony 5'-11"7'-9"5:125:125:12 3:123:124:124:125:122040 H 1" AIR (TYP.) 3050 H 6068 T 6068 T 4040 4040 6068 T 3016 T 2040 H 2040 H 3060 H 2040 H 2040 H 40402040 H 2040 H 2040 H 2040 H 4040 2040 H 3:123:12 6:12 3:125:12 5:125:123:126:126:12 3:125:125:123:126:126:12 5:125:123:123:123:123:124:12 4:12 3:1221'-8"1"21'-8"1"21'-8"1"21'-8"1"21'-8"1"21'-8"1"21'-8"38'-10"4:12 4:12 3:123:126:126:12VALLEYRIDGEV A L L E Y RIDGE VALLEY VALLEYVALLEYVAL L EYVALLEYRIDGE RIDGEVALLEYHIPHI PRIDGE VALLEYRIDGEVALLEYRIDGEVALLEYVALLEYRIDGEVALLEYHIPHIPVALLEYVALLEYVALLEYVALLEYRIDGEVALLEYVALLEYRIDGEHIPHIPRIDGE RIDGEVALLEYVAL L EYVALLEYC 2020 Doug Andresen, Architect expressly reserves his common law copyright and other property rights in these plans. These plans are not to be reproduced, changed or copied in any form or manner whatsoever, nor are they to be assigned to any third party without first obtaining the express written permission and consent of Douglas Andresen, Architect.LICE NS E D ARCHI TECTSTATE OF CA L IF ORN IADou gla s Andre senC-14504 12-31-23 RENEWAL DATEC:\Users\AbrahamEsquivel\Andresen Architecture Inc\AAI -Access\Projects\3_Projects 2010-2019\2017\17-2955 Sterling Ave -28-Units\Revit\17-2955 Sterling Apts - 2021 (New_Site).rvt6/14/2022 8:17:56 AMPL2.1Bldg. 1 - Plans Proposed 27-Unit Apartment Complex for: Mike Mahmoudi 10 Jun. 2022 17-2955 3164 N Sterling Ave, San Bernardino, CA 92404 1/8" = 1'-0" First Floor Plan - Bldg 1 1/8" = 1'-0" Second Floor Plan - Bldg 1 1/8" = 1'-0" Roof Plan - Bldg. 1   Packet Pg. 110 First Floor Second Floor T.P.2 T.P.1 9'-1"9'-1"24'-5"42" MIN.2040 H 2040 H 504040404040 404040402040 H 3040 H 3040 H 5040 5040 2040 H 3040 H 2040 H 2040 H 4040 5040 4040 M1 M1 M3 M2 M3 M1 M9 M5 M6 M4 M3 M2 M6 M6 M4 M1 M8M1M2 M7M2 M1 M7 M3 M6M6 M1 M3 M7 First Floor Second Floor T.P.2 T.P.1 30362040 H 2040 H 2040 H 2040 H 2050 H 2050 H 2050 H M1 M3 M7 M1 M5 M6M3M2 M2 M1 M3 M3 ?10'-1"9'-1"First Floor Second Floor T.P.2 T.P.142" MIN.M9 M3 M1M2 M3 B5 M2 M7 M2 M1 M9 M3 M3M2 M1 M3 M2M5 10'-1"9'-1"9'-1"9'-1"24'-9"6068 T 4040 4040 6068 T 6068 T 4040 6068 T 4040 M1 M3 M6 M3 M542" MIN.25'-6"First Floor Second Floor T.P.2 T.P.1 M1 M3 M2 M7 M3 M4 M6 M3 M7 M1 M1 M3 M5 M69'-1"9'-1"24'-9"2040 H 2040 H 3060 H 3016 T 2040 H 2040 H 2040 H 2040 H 2040 H 2040 H 2040 H C 2020 Doug Andresen, Architect expressly reserves his common law copyright and other property rights in these plans. These plans are not to be reproduced, changed or copied in any form or manner whatsoever, nor are they to be assigned to any third party without first obtaining the express written permission and consent of Douglas Andresen, Architect.LICE NS E D ARCHI TECTSTATE OF CA L IF ORN IADou gla s Andre senC-14504 12-31-23 RENEWAL DATEC:\Users\AbrahamEsquivel\Andresen Architecture Inc\AAI -Access\Projects\3_Projects 2010-2019\2017\17-2955 Sterling Ave -28-Units\Revit\17-2955 Sterling Apts - 2021 (New_Site).rvt6/14/2022 8:18:11 AMPL3Elevations Bldg - 2, 4 & 5 Proposed 27-Unit Apartment Complex for: Mike Mahmoudi 10 Jun. 2022 17-2955 3164 N Sterling Ave, San Bernardino, CA 92404 3/16" = 1'-0" East Elevation - Front 3/16" = 1'-0" South Elevation - Left 3/16" = 1'-0" West Elevation - Rear 3/16" = 1'-0" North Elevation - Right Material Legend - Elevation Mark Name/Description Manufacturer Model M1 ROOF TILES BORAL "CASA GRANDE BLEND" BARCELONA PROFILE M2 FASCIAL/TRIM DUNN EDWARDS - PAINT "EXPRESSO MACCHIATO" DET680 M3 MAIN COLOR DUNN EDWARDS - PAINT "PUEBLO WHITE" DET675 M4 ENTRY DOOR DUNN EDWARDS - PAINT "CHERRY COLA" DEA156 M5 GARAGE DOOR DUNN EDWARDS - PAINT "WHITE PICKET FENCE" DET648 M6 STONE VENEER BORAL CULTURED STONE "HIGH DESERT" USED BRICK PROFILE M7 HORIZONTAL SIDING DUNN EDWARDS - PAINT DE6214 M8 RAKE SIDING DUNN EDWARDS - PAINT "PUEBLO WHITE" DET675 M9 SHUTTERS & GUARDRIALS DUNN EDWARDS - PAINT NIGHT NIGHT "DE5937"   Packet Pg. 111 DWDWREF.DWREF.FACPDWREF.DWWHDWWHDWWHD WWHDN DN DN DN x Garage 20'-0"21'-1" x Powder 4'-7"5'-7" x Kitchen/Dine 10'-10"9'-0" x Living 13'-1"12'-0" x Garage 20'-0"21'-1" x Living 13'-1"12'-0" x Kitchen/Dine 10'-10"9'-0" x Powder 4'-7"5'-7" x Garage 20'-0"21'-1" x Kitchen/Dine 10'-10"9'-0" x Living 13'-1"12'-0" x Powder 6'-1"5'-7" PL1.2 1 PL1.2 2 / Garage CN 9'-0" / Kitchen/Dine SV 8'-0" / Living CP 9'-0" 5040 4040 3036 2050 H 2050 H 2050 H 2040 H 2040 H 2040 H 4040 5040 5040 4040 4040 5040 2040 H 2040 H 2040 H 41'-0"6"21'-8"1"21'-8"1"21'-8"1"21'-8" ELECTRICAL ROOM FIRE RAISER ROOM 4'-4" 86'-11"37'-0"4040 6068 T 6068 T 4040 4040 6068 T 2040 H 2040 H 4040 2040 H 2040 H 40402040 H 3040 H 3040 H 2040 H x Balcony 4'-10"-9'-9" x Bed #3 10'-0"10'-1" x Bed #2 10'-1"10'-0" x Balcony 4'-10"-9'-9" x Bed #2 10'-1"10'-0" x Bed #3 10'-0"10'-1" x Bath #2 5'-0"7'-10" x Master Bed 10'-11"12'-5" x M. Bath 10'-4"8'-4" x Master Bed 10'-11"12'-5" x M. Bath 10'-4"8'-4" x Bath #2 5'-0"7'-10" x Balcony 4'-10"-9'-9" x Bed #3 10'-0"10'-1" x Bed #2 10'-1"10'-0" x Bath #2 5'-0"7'-10" x Master Bed 10'-11"12'-5" x M. Bath 10'-4"8'-4" 2040 H 2040 H 2040 H 2040 H 2040 H 3040 H 4040 6068 T 3016 T 3060 H x Bed #3 10'-0"10'-1" x Bed #2 10'-1"10'-0" x Master Bed 10'-11"12'-5" x M. Bath 10'-4"8'-4" x Balcony 5'-11"7'-9" x Balcony 4'-10"-9'-9" 8"21'-8"1"21'-8"1"21'-8"1"21'-8"8"2'-1"36'-9"2040 H 2040 H x Balcony 5'-11"7'-9"x Balcony 5'-11"7'-9"x Balcony 5'-11"7'-9"6'-4"32'-6"86'-11"5:125:124:124:125:125:125:12 5:125:125:125:125:123:123:124:12 4:12 8:12 8:12 3:12 8:12 8:12 3:125:12 5:123:126:12 6:12 3:125:125:123:123:125:125:123:123:12 6:126:12VALLEYRIDGEV A L L E Y RIDGE VALLEYVALL EYVALLEYVAL LEYVALLEYRIDGE RIDGEVALLEYHIPHIPRIDGE VALLEYRIDGEHIPHIPVALLEYVALLEYRIDGEV A L L E Y VALLEY RIDGEVALLEY VALLEYVALL E YRIDGE RIDGEC 2020 Doug Andresen, Architect expressly reserves his common law copyright and other property rights in these plans. These plans are not to be reproduced, changed or copied in any form or manner whatsoever, nor are they to be assigned to any third party without first obtaining the express written permission and consent of Douglas Andresen, Architect.LICE NS E D ARCHI TECTSTATE OF CA L IF ORN IADou gla s Andre senC-14504 12-31-23 RENEWAL DATEC:\Users\AbrahamEsquivel\Andresen Architecture Inc\AAI -Access\Projects\3_Projects 2010-2019\2017\17-2955 Sterling Ave -28-Units\Revit\17-2955 Sterling Apts - 2021 (New_Site).rvt6/14/2022 8:18:14 AMPL3.1Bldg. 2, 4 & 5 - Plans Proposed 27-Unit Apartment Complex for: Mike Mahmoudi 10 Jun. 2022 17-2955 3164 N Sterling Ave, San Bernardino, CA 92404 1/8" = 1'-0" First Floor Plan - Bldg. 2, 4, 5 1/8" = 1'-0" Second Floor Plan - Bldg 2, 4 & 5 1/8" = 1'-0" Roof Plan - Bldg. 2, 4, 5   Packet Pg. 112 First Floor Second Floor T.P.2 T.P.1 1'-6"M1 M8M1M2M3 M3 M8 M3 M6M2M4M6M4 M7 M2 M7M1M3 M2 M8 42" MIN.M9 M8 M1 M3 M1 2040 H 4040 2040 H 2040 H 5040 5040 2040 H 4040 2040 H 4040 4040 2040 H M9 M7M1 M2 M3 M2 3040 H 3040 H 2040 H 4040 5040 5040 2040 H 4040 4040 2040 H 2040 H 5040 2040 H 2040 H 5040 4040 2040 H 4040 4040 2040 H 2040 H 2040 H 2040 H 5040 5040 3040 H 3040 H 2040 H 4040 M8 M2 M1 M7M2M7 24'-6"24'-6"25'-6"First Floor Second Floor T.P.2 T.P.1 9'-1"9'-1"M1 M7 M2 M8 M2 M1 M7 M2 M2 M6M3 M1 M5 M3 M2M2 2040 H 2040 H 2050 H 2050 H 2050 H 2040 H 2040 H 3036 M9M9 M3 M7 First Floor Second Floor T.P.2 T.P.1 M3M5M7M3 M7 M2 M1 M7 M2 M1 M9 42" MIN.M1 M3 M2M7 M2 M3M3M2M1M7 M3M7 M5M2B5M2 M3 M1 M2 M9 M2 M9M2 M3 M3 M7 M2 M1 M3 M1 M6 M3 M5 M3 M3 4040 6068 T 6068 T 4040 4040 6068 T 6068 T 4040 4040 6068 T 6068 T 4040 3050 H 6068 T 6068 T 4040 24'-6"9'-1"9'-1"24'-6"25'-10"Second Floor T.P.2 T.P.1 10'-7"9'-1"M6 M4 M2 M8 M2 M2M3 M2M1 M3 M2 M7 M2 3036 2040 H 2040 H 2040 H 2050 H 2050 H 2050 H M2 M3M1 M8 26'-0"C 2020 Doug Andresen, Architect expressly reserves his common law copyright and other property rights in these plans. These plans are not to be reproduced, changed or copied in any form or manner whatsoever, nor are they to be assigned to any third party without first obtaining the express written permission and consent of Douglas Andresen, Architect.LICE NS E D ARCHI TECTSTATE OF CA L IF ORN IADou gla s Andre senC-14504 12-31-23 RENEWAL DATEC:\Users\AbrahamEsquivel\Andresen Architecture Inc\AAI -Access\Projects\3_Projects 2010-2019\2017\17-2955 Sterling Ave -28-Units\Revit\17-2955 Sterling Apts - 2021 (New_Site).rvt6/14/2022 8:18:37 AMPL4Elevations Bldg - 3 Proposed 27-Unit Apartment Complex for: Mike Mahmoudi 10 Jun. 2022 17-2955 3164 N Sterling Ave, San Bernardino, CA 92404 3/16" = 1'-0" West Elevation - Front 3/16" = 1'-0" North Elevation - Left 3/16" = 1'-0" East Elevation - Rear 3/16" = 1'-0" South Elevation - Right Material Legend - Elevation Mark Name/Description Manufacturer Model M1 ROOF TILES BORAL "CASA GRANDE BLEND" BARCELONA PROFILE M2 FASCIAL/TRIM DUNN EDWARDS - PAINT "EXPRESSO MACCHIATO" DET680 M3 MAIN COLOR DUNN EDWARDS - PAINT "PUEBLO WHITE" DET675 M4 ENTRY DOOR DUNN EDWARDS - PAINT "CHERRY COLA" DEA156 M5 GARAGE DOOR DUNN EDWARDS - PAINT "WHITE PICKET FENCE" DET648 M6 STONE VENEER BORAL CULTURED STONE "HIGH DESERT" USED BRICK PROFILE M7 HORIZONTAL SIDING DUNN EDWARDS - PAINT DE6214 M8 RAKE SIDING DUNN EDWARDS - PAINT "PUEBLO WHITE" DET675 M9 SHUTTERS & GUARDRIALS DUNN EDWARDS - PAINT NIGHT NIGHT "DE5937"   Packet Pg. 113 DWWHDWWHDWWHDWWHDWWHDWWHDWWHDWWHFACPDWREF.DWREF.DWREF.DWREF.DWREF.DWREF.DWREF.DW3:12 3:125:125:12 3:123:124:124:12 3:123:125:125:12 5:125:125:12 5:12 5:123:123:126:126:12 5:125:12 3:126:126:12 3:125:12 5:12 3:123:123:123:124:12 4:12 3:126:126:126:126:12RIDGE VALLEYRIDGEV A L L E Y RIDGE VALLEY HIPHIPVALLEYVALLEYVAL L EYVALLEYRIDGE RIDGEVALLEYVALLEYRIDGEVALLEYRIDGEVALLEYVALLEYRIDGEVALLEYHIPHIPVALLEYVALLEYRIDGERIDGEVALLEYVALLEYRIDGEVALLEYVALLEYRIDGEVALLEY RIDGE V A L L E Y HIPHIPVAL L EYVALLEYVALLEYRIDGERIDGE VALLEYRIDGEVALLEYVALLEYRIDGEV A L L E Y RIDGE VALLEY VALLEYVALLEYVAL L EYVALLEYRIDGE RIDGEVALLEY6:126:12 3:123:123040 H 3040 H 2040 H2040 H2040 H 2040 H 2040 H 4040 2040 H 2040 H2040 H 2040 H 2040 H 2040 H 2040 H 4040 6068 T 6068 T 40404040 6068 T 6068 T 40404040 6068 T 6068 T 40403050 H 6068 T 6068 T 4040 2040 H 2040 H 2040 H 2040 H 2040 H 2040 H 2040 H 4040 2040 H 2040 H 3040 H 3040 H 2040 H 4040 2040 H 2040 H x Balcony 5'-11"7'-9" x Master Bed 10'-11"12'-5"x Master Bed 10'-11"12'-5" x Bed #2 10'-1"10'-0"x Bed #2 10'-1"10'-0" x Bed #3 10'-0"10'-1" x Balcony 4'-10"-9'-9"x Balcony 4'-10"-9'-9" x Bed #3 10'-0"10'-1"x Bed #3 10'-0"10'-1" x M. Bath 10'-4"8'-4" x M. Bath 10'-4"8'-4" x Balcony 5'-11"7'-9"x Balcony 5'-11"7'-9" x Master Bed 10'-11"12'-5"x Master Bed 10'-11"12'-5" x Bed #2 10'-1"10'-0"x Bed #2 10'-1"10'-0" x Balcony 4'-10"-9'-9"x Balcony 4'-10"-9'-9" x Bath #2 5'-0"7'-10"x Bath #2 5'-0"7'-10" x M. Bath 10'-4"8'-4" x Bed #3 10'-0"10'-1"x Bed #3 10'-0"10'-1" x Balcony 4'-10"-9'-9"x Balcony 4'-10"-9'-9" x Bed #2 10'-1"10'-0" x Master Bed 10'-11"12'-5"x Master Bed 10'-11"12'-5" x Bath #2 5'-0"7'-10" x Bed #3 10'-0"10'-1"x Bed #3 10'-0"10'-1" x M. Bath 10'-4"8'-4" x M. Bath 10'-4"8'-4" x Balcony 5'-11"7'-9"x Balcony 5'-11"7'-9" x Master Bed 10'-11"12'-5"x Master Bed 10'-11"12'-5" x Bed #2 10'-1"10'-0" x Bed #2 10'-1"10'-0" x Balcony 4'-10"-9'-9"x Balcony 4'-10"-9'-9" x Bed #3 10'-0"10'-1" x M. Bath 10'-4"8'-4" x Balcony 5'-11"7'-9" 2040 H x Bed #2 10'-1"10'-0" x Balcony 5'-11"7'-9"x Balcony 5'-11"7'-9" x Bath #2 5'-0"7'-10"x Bath #2 5'-0"7'-10"32'-6"6'-4"21'-8"1"21'-8"1"21'-8"1"21'-8"1"21'-8"1"21'-8"1"21'-8"1"21'-8" 173'-11"6'-4"32'-6"2050 H 2050 H 2050 H 3036 4040 50405040 40404040 50405040 40404040 50405040 40404040 50405040 4040 3036 2040 H 2050 H 2050 H 2050 H x Garage 20'-0"21'-1"x Garage 20'-0"21'-1"x Garage 20'-0"21'-1" x Garage 20'-0"21'-1" x Garage 20'-0"21'-1" x Garage 20'-0"21'-1"x Garage 20'-0"21'-1" x Garage 20'-0"21'-1" x Living 13'-1"12'-0" x Kitchen/Dine 10'-10"9'-0" x Living 13'-1"12'-0" x Kitchen/Dine 10'-10"9'-0" x Kitchen/Dine 10'-10"9'-0" x Living 13'-1"12'-0" x Living 13'-1"12'-0" x Kitchen/Dine 10'-10"9'-0" x Kitchen/Dine 10'-10"9'-0" x Living 13'-1"12'-0" x Living 13'-1"12'-0" x Kitchen/Dine 10'-10"9'-0" x Kitchen/Dine 10'-10"9'-0" x Living 13'-1"12'-0" x Living 13'-1"12'-0" x Kitchen/Dine 10'-10"9'-0" FIRE RAISER RM ELECTRICAL ROOM 21'-8"1"21'-8"1"21'-8"1"21'-8"1"21'-8"1"21'-8"1"21'-8"1"21'-8" 173'-11"37'-0"1'-6"2'-6"1" AIR (TYP.) x Powder 6'-1"5'-7"x Powder 4'-7"5'-7"x Powder 4'-7"5'-7"x Powder 4'-7"5'-7"x Powder 4'-7"5'-7"x Powder 4'-7"5'-7"x Powder 4'-7"5'-7"x Powder 4'-7"5'-7" C 2020 Doug Andresen, Architect expressly reserves his common law copyright and other property rights in these plans. These plans are not to be reproduced, changed or copied in any form or manner whatsoever, nor are they to be assigned to any third party without first obtaining the express written permission and consent of Douglas Andresen, Architect.LICE NS E D ARCHI TECTSTATE OF CA L IF ORN IADou gla s Andre senC-14504 12-31-23 RENEWAL DATEC:\Users\AbrahamEsquivel\Andresen Architecture Inc\AAI -Access\Projects\3_Projects 2010-2019\2017\17-2955 Sterling Ave -28-Units\Revit\17-2955 Sterling Apts - 2021 (New_Site).rvt6/14/2022 8:18:44 AMPL4.1Bldg. 3 - Plans Proposed 27-Unit Apartment Complex for: Mike Mahmoudi 10 Jun. 2022 17-2955 3164 N Sterling Ave, San Bernardino, CA 92404 1/8" = 1'-0" Roof Plan - Bldg. 3 1/8" = 1'-0" Second Floor Plan - Bldg 3 1/8" = 1'-0" First Floor Plan - Bldg 3   Packet Pg. 114 FACP5050 5050 5050 5050 5050 5050 4046 5050 5050 3040 x Recreational 21'-0"28'-9" x Vestibule 15'-3"7'-0" x Men 9'-3"7'-0" x Women 9'-3"7'-0" x Riser Room 3'-2"4'-11" x Electrical/Mechanical 3'-10"4'-11" x Shower / Changing 9'-2"5'-2"45'-0"36'-6" 17'-6"6'-0"13'-0"7'-0"31'-0"3'-6"3'-6"M3 M6 M2 M2 M8 M2 M1 M3 M6 M910'-1"M3 M2 M3 M4 M6 M1M8 M2 40465050505016'-11"10'-1"First Floor M3 M2 M8 M2M1 10'-1"5050505050505050 M3 First Floor10'-1"M3 M9 M2M4M2 M1 M3 M6 M2 M2 3040 5050 5050 M3 5:125:125:12 5:12 5:12 5:125:12 5:12 RIDGE VALLEYVALLEYRIDGERIDGEVALLEYVALLEYRIDGERIDGEC 2020 Doug Andresen, Architect expressly reserves his common law copyright and other property rights in these plans. These plans are not to be reproduced, changed or copied in any form or manner whatsoever, nor are they to be assigned to any third party without first obtaining the express written permission and consent of Douglas Andresen, Architect.LICE NS E D ARCHI TECTSTATE OF CA L IF ORN IADou gla s Andre senC-14504 12-31-23 RENEWAL DATEC:\Users\AbrahamEsquivel\Andresen Architecture Inc\AAI -Access\Projects\3_Projects 2010-2019\2017\17-2955 Sterling Ave -28-Units\Revit\17-2955 Sterling Apts - 2021 (New_Site).rvt6/14/2022 8:18:54 AMPL5Recreation Building Proposed 27-Unit Apartment Complex for: Mike Mahmoudi 10 Jun. 2022 17-2955 3164 N Sterling Ave, San Bernardino, CA 92404 Material Legend - Elevation Mark Name/Description Manufacturer Model M1 ROOF TILES BORAL "CASA GRANDE BLEND" BARCELONA PROFILE M2 FASCIAL/TRIM DUNN EDWARDS - PAINT "EXPRESSO MACCHIATO" DET680 M3 MAIN COLOR DUNN EDWARDS - PAINT "PUEBLO WHITE" DET675 M4 ENTRY DOOR DUNN EDWARDS - PAINT "CHERRY COLA" DEA156 M5 GARAGE DOOR DUNN EDWARDS - PAINT "WHITE PICKET FENCE" DET648 M6 STONE VENEER BORAL CULTURED STONE "HIGH DESERT" USED BRICK PROFILE M7 HORIZONTAL SIDING DUNN EDWARDS - PAINT DE6214 M8 RAKE SIDING DUNN EDWARDS - PAINT "PUEBLO WHITE" DET675 M9 SHUTTERS & GUARDRIALS DUNN EDWARDS - PAINT NIGHT NIGHT "DE5937" 1/8" = 1'-0" Floor Plan - Recreational Bldg. 3/16" = 1'-0" North Elevation - Front 3/16" = 1'-0" East Elevation - Left 3/16" = 1'-0" South Elevation - Rear 3/16" = 1'-0" West Elevation - Right 1/8" = 1'-0" Roof Plan - Recreational   Packet Pg. 115 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;116 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;117   Packet Pg. 118   Packet Pg. 119   Packet Pg. 120   Packet Pg. 121   Packet Pg. 122   Packet Pg. 123   Packet Pg. 124   Packet Pg. 125   Packet Pg. 126   Packet Pg. 127   Packet Pg. 128   Packet Pg. 129   Packet Pg. 130   Packet Pg. 131   Packet Pg. 132   Packet Pg. 133   Packet Pg. 134   Packet Pg. 135   Packet Pg. 136   Packet Pg. 137   Packet Pg. 138   Packet Pg. 139   Packet Pg. 140   Packet Pg. 141   Packet Pg. 142   Packet Pg. 143   Packet Pg. 144   Packet Pg. 145   Packet Pg. 146   Packet Pg. 147   Packet Pg. 148   Packet Pg. 149   Packet Pg. 150   Packet Pg. 151   Packet Pg. 152   Packet Pg. 153   Packet Pg. 154   Packet Pg. 155   Packet Pg. 156   Packet Pg. 157   Packet Pg. 158   Packet Pg. 159   Packet Pg. 160   Packet Pg. 161   Packet Pg. 162   Packet Pg. 163   Packet Pg. 164   Packet Pg. 165   Packet Pg. 166   Packet Pg. 167   Packet Pg. 168   Packet Pg. 169   Packet Pg. 170   Packet Pg. 171   Packet Pg. 172   Packet Pg. 173   Packet Pg. 174   Packet Pg. 175   Packet Pg. 176   Packet Pg. 177   Packet Pg. 178   Packet Pg. 179   Packet Pg. 180   Packet Pg. 181   Packet Pg. 182   Packet Pg. 183   Packet Pg. 184   Packet Pg. 185   Packet Pg. 186   Packet Pg. 187   Packet Pg. 188   Packet Pg. 189   Packet Pg. 190   Packet Pg. 191   Packet Pg. 192 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;193 1 September 12, 2022 Honorable Mayor and Members of the City Council City of San Bernardino 290 North D Street San Bernardino, CA 92401 Subject: Development Permit Type P 20-08 (APN 0272-372-59), Applicant’s Responses to Appeal filed by Mr. Neil Perry of Pine Ridge Villas Condominium Dear Mayor and Councilmembers: I am writing in connection with the Appeal Application filed by Neil Derry (“Mr. Derry”) in connection with the Planning Commission’s approval of my proposed development at 3164 Sterling Avenue (the “Subject Property”), and in particular, the Planning Commission’s Resolution No. 2022-038-PC dated July 12, 2022 whereby the Planning Commission approved Development Permit Type-P 20-08 (the “Resolution”) for the development of the Subject Property. To provide some factual background, on July 12, 2022, the Planning Commission, by way of a 4- 3 vote, passed the Resolution approving the Development Permit Type-P 20-08 for a 27-unit multi-family residential complex on approximately 2.38 acres of vacant land (the “Project”). Subsequently, on July 27, 2022, Mr. Derry, an owner of a residential condominium in the neighboring Pine Ridge Villas, submitted an Appeal Application of the Resolution. As a result, this matter is now in the hands of the City Council, and we are respectfully requesting that the City Council deny Mr. Derry’s Appeal Application and uphold the Resolution of the Planning Commission. City Staff is also continuing to recommend this Project for approval. Before we respond to each of Mr. Derry’s contentions in his Appeal Application, it is worth pointing out that the proposed Project will be an aesthetically pleasing addition to the surrounding neighborhood, and we hope that this Project will inspire additional development in the area. There are no findings to the effect that the proposed Project would have an adverse impact on public, health and safety. In addition, this Project will be gated, secured, and will have onsite property management 24/7. As the Applicant, I have read the several reasons upon which Mr. Derry bases his Appeal. I would like to take this opportunity to respond to the issues he raises therein as follows: Appeal Contention No. 1: Mr. Derry incorrectly asserts that the Subject Property is part of the Pine Ridge Villas Condominium Development. Specifically, Mr. Derry states that “the 2.38 acre lot has always been part of the Pine Ridge Villas Condominium development, . . . and remains so today.” Mr. Derry goes on to state that the Property “was approved as part of our condominium   Packet Pg. 194 2 development in the 1970’s to share the parking, access, services, community amenities and financial obligations of the entire condominium project.” Response: With all due respect, Mr. Derry is wrong. The original developer in the 1970’s, Gilano Development Corporation, Inc. (the “Developer”), divided the proposed Pine Ridge Villas into two phases (Parcel Map 6209, Parcels 1 and 2). The Developer built the first phase, Parcel 1 (Tract 10235), which is where Mr. Derry resides. The Developer never constructed the contemplated second phase, Parcel 2 (Tract 10597), which is now the Subject Property in question, and which has stayed vacant since the first phase was completed over 40 years ago. According to the operative CC&Rs for Pine Ridge Villas, recorded on October 1, 1980 (Doc. No. 80-222066), the first paragraph states, in part, that “Declarant hereby revokes all declarations heretobefore executed and recorded and declares that the herein declaration supersedes all such prior declarations.” As such, the prior CC&Rs recorded on January 18, 1980 (Doc. No. 80-015959) are of no legal force or effect. Attached hereto as Exhibit 1 are operative pages from the CC&Rs. The operative CC&Rs (Doc. No. 80-222066) make it clear that the Property is absolutely not part of Pine Ridge Villas, nor is the Property subject to the Pine Ridge Villas’ CC&Rs. Section 17 of the CC&Rs is titled “Annexation of Additional Property,” and Section 17.1 is titled (and sets forth the) “Procedure for Annexation” as follows: “The real property described in Exhibit B [i.e., the Subject Property] or any portion thereof may be annexed to this Declaration upon the written election of the declarant (or by the successors in title to such real property) made at any time and from time to time within three (3) years following the original issues of a final subdivision public report by the California Commissioner of Real Estate for the first phase of the development. Such election shall be made by the recording of a supplement to this declaration (the “Supplement”). . . . Upon filing the Supplement in accordance with the provisions of this declaration, the real property described in the Supplemental shall be subject to the provisions of this declaration, and to the rights and powers of the Association pursuant to the terms of this declaration, the articles and the by-laws, and thereafter all of the owners of condominiums constituting a portion of said annexed real property shall automatically be members of the Association.” See Exhibit 1. What Mr. Derry fails to acknowledge in his appeal is that the Subject Property was never annexed into the Pine Ridge Villas, as it has simply sat vacant for the past 40-plus years. As such, Pine Ridge Villas is a stand-alone multi-family project with its own HOA, guest parking, and common open space and amenities. The Subject Property has nothing to do with Pine Ridge Villas, and the residents of Pine Ridge Villas have no rights to do anything on the Subject Property. Attached as Exhibit 2 are photos of how the Subject Property currently looks. Attached as Exhibit 3 are copies renderings of the proposed Project.   Packet Pg. 195 3 We acquired the Subject Property to develop a similar type of multi-family project, only a modern-day version, which we believe will greatly enhance the surrounding area. The proposed Project is also a stand-alone project. Although not individually owned condominiums, the Project, once completed, will be managed by a professional property management company and one of the units will be dedicated as housing for an onsite property manager who will reside at the Subject Property full-time. Additionally, the proposed Project will have its own guest parking, and common open space and amenities. Of equal importance, we have honored the reciprocal access under Parcel Map 6209 for the shared private drive aisle by reserving 13-foot wide access as reciprocal access at the west and south sides of the parcel 2 for the benefit of the residents of the Pine Ridge Villas. In short, the dirt area where Pine Ridge residents current park will become an additional paved road 13-feet in width. When the Project is completed, the residents of Pine Ridge Villas will actually have a fully improved 26-foot wide access to Sterling Avene, and their north-south driveway will also double in width by virtue of the improvements that we will have completed. In short, the Project will enhance and increase the size of the common area of Pine Ridge Villas. Appeal Contention No. 2: Mr. Derry states that “[t]he parcel in question is completely enclosed within the existing and original improvements built by the original developer as part of the complex, including water and sewer utilities, perimeter walls and fencing waste disposal facility, fire suppression, and road infrastructure.” Response: The Planning Commission approved the proposed Project and imposed conditions of approval requiring the construction of project-related utilities. Specifically, there are conditions related to drainage and flood control, grading and landscaping, onsite utilities, street improvements and dedications, traffic requirements, and intergrade waste requirements. For example, as part of the Project we will have to construct a new curb, gutter, and sidewalk with ADA compliance and replace the two existing driveways with new driveways according to the present City's public works standards along Sterling Avenue. The proposed Project must provide and construct its own water, sewer, and drainage utilities under the current City's and East Valley Water District's standards. The existing fencing along Sterling Ave is in bad condition and not aesthetically pleasing. The proposed Project will provide an open fencing design with wrought iron and decorative pilasters. Burrtec Waste has reviewed and recommended approval of the proposed Project since the development plans show the construction of two trash enclosure areas for centralized pick-up. The San Bernadino County Fire Department has reviewed and recommended approval of the proposed Project with conditions, all of which are acceptable to the Applicant. Appeal Contention No. 3: Mr. Derry states that “[t]he proposed project specifically violates the Owner’s Certificate of Parcel Map No. 6209, the reservation of reciprocal easements of use between Parcel 1 (Pine Ridge Villas Condominium Project) and Parcel 2 (proposed 27-unit apartment project) ‘including enjoyment, access, ingress, and egress and drainage’ as the proposed project walls off and bifurcates parcel 2 from parcel 1, including current shared uses of parcel 2 for ingress, egress, parking and waste disposal and recycling (enjoyment and access).”   Packet Pg. 196 4 Response: The Applicant honored the reciprocal access under Parcel Map 6209 for the shared private drive aisle by reserving 13-foot wide access as reciprocal access at the west and south sides of the Parcel 2 for the benefit of Parcel 1 (the Pine Ridge Villas). The proposed Project will improve the 26-foot wide access to Sterling Avenue by paving it for the enjoyment and access of all residents of the Pine Ridge Villas. Instead of a solid block wall, the Applicant uses open fencing with wrought iron and decorative pilasters for the proposed Project, thus creating openness for the benefit of the community as a whole. Appeal Contention No. 4: Mr. Derry claims that the proposed Project would take away the three dumpsters and would eliminate parking of the residents of the Pine Ridge Villas and block emergency access to Pine Ridge Villas. Response: Attached as Exhibit 4 is a picture of the three dumpsters in question, which have been illegally placed on the Subject Property, presumably by the Pine Ridge Villas. This is the private property of the Applicant, and Pine Ridge Villas has no right to use the Subject Property as its loading place for Pine Ridge Village trash service. But in any event, and as stated in the responses above (Point 3), the proposed Project will include the construction of a fully improved 26-foot wide access to Sterling Avenue for the enjoyment and access of all Pine Ridge Villas residents. With all due respect to Mr. Derry, the Pine Ridge Villas Association does not have the legal right to use Parcel 2 as a parking lot or a trash dumping site. The Pine Ridge Villas Association can contact Burrtec regarding the appropriate locations within their community for the placement of trash receptacles, and the additional 13 feet of paved road that the Applicant is providing to the Pine Ridge Villas should more than suffice for both the placement of trash receptacles and emergency access. In fact, the Applicant’s architectural firm, Andresen Architecture, Inc., recently contacted Burrtec to inquire whether the proposed Project would interfere with the Pine Ridge Villas trash service. Burrtec responded that the proposed Project “would not interfere with the neighbor’s services.” A copy of this email exchange with Burrtec is attached hereto as Exhibit 5. Appeal Contention No. 5: Mr. Derry states that “[t]he proposed development would also eliminate access to two fire hydrants that are currently 27 feet from the centerline and are proposed to be fenced off.” Response: San Bernardino County Fire Department has reviewed the proposed Project and recommended approval with conditions, which conditions have already been made part of the Resolution. The Applicant is not removing any of the existing two fire hydrants and San Bernardino County Fire Department has (and will continue to have) full access to use the two existing fire hydrants for Pine Ridge Villas. The San Bernardino County Fire Department requires the Applicant to construct two new fire hydrants within the project site for fire prevention and suppression. This will be constructed as part of the Project. Appeal Contention No. 6: Mr. Derry disagrees with the Planning Department in its analysis that the proposed project is a consistent use with the surrounding "multi-family projects.” In taking this position, Mr. Derry states that “[t]he residential developments directly adjacent to this   Packet Pg. 197 5 project are ALL privately-owend, individual units, and parts {sic} of Home Owner Associations run by the residents.” Response: Mr. Derry’s contention is simply not true. The Terrace Village Apartments – which are all residential rental apartments – are located immediately to the west and the north of the Pine Ridge Villas. The Terrace Village apartments essentially surround the Pine Ridge Villas on two of four sides, with Lynwood Drive to the south, and then the Subject Property immediately to the east of the Pine Ridge Villas. In any event, the proposed Project consists of 27 two-story units with an attached 2-car garage. The proposed Project requires on-site improvements such as landscaping, common open space, a recreation room, guest parking, trash enclosure areas, decorative fencing, and project access entry features. The architectural design of the two-story townhouse product features contemporary Craftsman style and details. The proposed Project is consistent with the General Plan land use goals because it offers additional housing in the area, revitalizes vacant properties, and contributes to the neighborhood with its attractive design. The proposed Project is consistent with the City's Housing Element and contributes to the City's Regional Housing Needs Allocation (RHNA). The proposed Project is consistent with the RM (Residential Medium) Zone and complies with all applicable Development Code standards regarding density, setbacks, building height, parking, and landscaping. The Applicant concurs with the Finding of Facts in the Planning Commission’s Resolution. Appeal Contention No. 7: Contrary to the findings of the Planning Department and the City’s Traffic Engineering Division, Mr. Derry contends that an access point off of Sterling Avenue creates “an unsafe condition for both the residents of the proposed project as well as hundreds of commuters that use Sterline Avenue on a daily basis.” Response: Today, there are two existing driveways for access, one shared access with Pine Ridge Villas (adjacent to Parcel 1) and one solely for the proposed Project (the Subject Property). The primary entry access into the proposed Project is 45 feet wide and has sufficient turnaround meeting the City’s standards and San Bernardino County Fire Department’s requirements. According to the Planning Division’s Staff Report dated July 12, 2022, the City’s Traffic Engineering Division stated that there will be no significant impacts on surrounding roadways or intersections since the proposed Project will generate less than 50 trips for am/pm peak. As such, Mr. Derry’s findings are wholly unfounded and appear to be mere speculation. Appeal Contention No. 8: Mr. Derry requests that the proposed Project be conditioned as privately owned individual units. Response: Mr. Derry is asking the City Council to take a position that is contrary to the law. A condominium unit is privately owned, but the owner can also use it as a rental unit. California Assembly Bill 3182 amended Civil Code Section 4740 and added a new section 4741, which prohibits any Common Interest Developments (Condominiums) from prohibiting owners in the rental or lease of the owner’s property. As such, Mr. Derry’s request is not legally viable. Mr. Derry also ignores the fact that a number of the privately owned condominiums within the Pine Ridge Villas are likely rented out by their owners to tenants. Is Mr. Derry asking the City to   Packet Pg. 198   Packet Pg. 199 EXHIBIT 1   Packet Pg. 200   Packet Pg. 201   Packet Pg. 202   Packet Pg. 203   Packet Pg. 204   Packet Pg. 205 EXHIBIT 2   Packet Pg. 206   Packet Pg. 207   Packet Pg. 208   Packet Pg. 209   Packet Pg. 210   Packet Pg. 211   Packet Pg. 212   Packet Pg. 213   EXHIBIT 3      Packet Pg. 214   Packet Pg. 215   Packet Pg. 216   Packet Pg. 217   EXHIBIT 4      Packet Pg. 218   Packet Pg. 219 EXHIBIT 5   Packet Pg. 220 From: SB City Admin <citysbadmin@burrtec.com> Sent: Monday, August 15, 2022 3:12 PM To: Crystal Cardona <crystal.cardona@aaifirm.com> Cc: AAI Administration <administration@aaifirm.com> Subject: Re: Inquiry- 3164 N Sterling Ave., San Bernardino, CA Hello Your project will not interfere with the neighbors services. If you need any information regarding services please call our office (909) 804-4222 Thank you -- Burrtec Waste Industries, Inc. Customer Service Department City San Bernardino Division "We'll take care of it!" Phone (909)804-4222 Fax (909)889-3710 On Tue, Aug 9, 2022 at 3:51 PM Crystal Cardona <crystal.cardona@aaifirm.com> wrote: Good Afternoon, I am reaching out regarding a project located at 3164 N. Sterling Ave., San Bernardino, CA. We received approval from City of San Bernardino to do a 27 Unit Apartment building. We had a couple of questions that we need to provide to the City of San Bernardino regarding the neighbors’ concerns who live in the Pine Ridge Villas regarding trash collection. • We want to confirm if our project will cause any disruption in trash collection in the area? • Does Pine Ridge Villas located at 1974 E. Lynwood Dr., San Bernardino have trash enclosures on their property? If they have do not have a Trash Enclosure would the property be able to put a Trash Enclosure on the property if they request one? • Will the project located at 3164 N. Sterling Ave., affect the trash pickup in the Pine Ridge Villa community? Crystal Cardona Project Administrative Coordinator Andresen Architecture, Inc. 17087 Orange Way Fontana, CA 92335 Tel: (909) 355-6688 EXT. 152 Email: crystal.cardona@aaifirm.com   Packet Pg. 221 City of San Bernardino 290 North D Street San Bernardino, CA 92401 http://www.sbcity.org Planning Commission of the City of San Bernardino Page 1 July 19, 2022 MINUTES FOR THE PLANNING COMMISSION OF THE CITY OF SAN BERNARDINO JULY 12, 2022 BOARD ROOM, 201 NORTH E STREET, 3RD FLOOR CALL TO ORDER The Meeting of the Planning Commission of the City of San Bernardino was called to order by Dolores Armstead at 6:06pm July 12, 2022, in the Board Room, 201 North E Street, San Bernardino, CA. PLEDGE OF ALLEGIANCE ROLL CALL Attendee Name Title Status Arrived Monique Guerrero Commissioner, Ward 1 L @ 6:45p Amelia S. Lopez Commissioner, Ward 2 P X Elizabeth Sanchez Commissioner, Ward 3 P X Larry Quiel Commissioner, Ward 4 P X Jesus F. Flores Commissioner, Ward 5 P X Dolores Armstead Commissioner, Ward 6 P X Ronnie E. Lewis III Commissioner, Ward 7 P X Vacant Commissioner, Mayor’s Appointee Harmoni Morales Commissioner, Mayor’s Appointee E Oliver Mujica Staff Liaison P X PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA CONSENT CALENDAR Chairperson Monique Guerrero Vice Chairperson Dolores Armstead Commissioners Jesus Flores Ronnie E. Lewis Amelia Lopez Harmoni Morales Larry Quiel Elizabeth Sanchez   Packet Pg. 222 Regular Meeting Minutes July 12, 2022 Planning Commission of the City of San Bernardino Page 2 July 19, 2022 1. Approval of Draft Minutes Recommendation: Approve the minutes of the Regular Meeting of June 14, 2022. RESULT: APPROVED MOVER: Commissioner Lewis SECONDER: Commissioner Flores ABSTAIN: None AYES: Lopez, Sanchez, Armstead, Quiel, Flores, and Lewis ABSENT: Guerrero and Morales PUBLIC HEARINGS 2. Conditional Use Permit 22-02 Subject: A request to allow the development, establishment, and operation of a truck maintenance facility (U-Haul) containing approximately 32,697 square feet on a project site comprised of two (2) parcels containing approximately 4.62 acres. Address: 1235 E. Baseline Street Zone: Commercial Heavy (CH) Environmental Determination: Categorically Exempt, pursuant to §15332 (In- Fill Development Projects) of the State CEQA Guidelines Owner: 1235 E. Baseline, LLC Applicant: Thomas Mitchell APN: 0278-063-01 and 02 Ward: 1 Recommendation: Staff recommended that the Planning Commission adopt Resolution No. 2022-037 approving Conditional Use Permit 22-02, based on the Findings of Fact and subject to the recommended Conditions of Approval; and finding the project subject to a Categorical Exemption under the California Environmental Quality Act. RESULT: APPROVED MOVER: Commissioner Quiel SECONDER: Commissioner Lopez ABSTAIN: None AYES: Lopez, Sanchez, Armstead, Quiel, Flores, and Lewis ABSENT: Guerrero and Morales   Packet Pg. 223 Regular Meeting Minutes July 12, 2022 Planning Commission of the City of San Bernardino Page 3 July 19, 2022 3. Development Code Amendment (Zoning Map Amendment) 20-05 and Development Permit Type-D 20-03 Subject: A request to change the Zoning District Classification from Office Industrial Park (OIP) to Industrial Light (IL) of two (2) parcels containing a total of approximately 3.84 acres and allow the development and establishment of an industrial warehouse containing approximately 89,475 square feet on a property comprised of three (3) parcels containing a total of approximately 4.02 acres. Address: 791 S. Waterman Avenue Zone: Office Industrial Park (OIP) and Industrial Light (IL) Environmental Determination: Mitigated Negative Declaration, pursuant to §15074 (Adoption of a Mitigated Negative Declaration) of the State CEQA Guidelines Owner: Amazing 34, LLC Applicant: Orly Corp. APN: 0280-021-34, 44, and 47 Ward: 3 Recommendation: Staff recommended that the Planning Commission adopt Resolution No. 2022-023 forwarding a recommendation to the Mayor and City Council recommending approval Development Code Amendment (Zoning Map Amendment) 20-05 and Development Permit Type-D 20-03, based on the Findings of Fact and subject to the recommended Conditions of Approval; and adoption of the Mitigated Negative Declaration and approval of the Mitigation Monitoring and Reporting Program under the California Environmental Quality Act. Public Speakers Rick Yager Michael Brandke Jeffrey Scott Jordan Sisson During public testimony, new information was presented related to the Mitigated Negative Declaration. Therefore, Oliver Mujica (Planning Division Manager) requested a continuance in order to allow staff the opportunity to address the new information. RESULT: CONTINUED TO 8/9/22 PLANNING COMMISSION MEETING MOVER: Commissioner Quiel SECONDER: Commissioner Lewis ABSTAIN: None AYES: Lopez, Sanchez, Armstead, Quiel, Flores, and Lewis ABSENT: Guerrero and Morales   Packet Pg. 224 Regular Meeting Minutes July 12, 2022 Planning Commission of the City of San Bernardino Page 4 July 19, 2022 4. Development Code Amendment (Zoning Map Amendment) 21-03, Subdivision 21-09 (Tentative Parcel Map 20430) and Development Permit Type-D 21-15 Subject: A request to change the Zoning District Classification from Commercial General (CG-1) to Industrial Heavy (IH) of one (1) parcel containing approximately 3.94 acres, allow the consolidation of two (2) parcels into one (1) parcel containing a total of approximately 11.07 acres, and allow the development and establishment of a truck terminal facility containing approximately 52,160 square feet. Address: 5770 N. Industrial Parkway Zone: Commercial General (CG-1) and Industrial Heavy (IH) Environmental Determination: Mitigated Negative Declaration, pursuant to §15074 (Adoption of a Mitigated Negative Declaration) of the State CEQA Guidelines Owner: DP Industrial Parkway, LLC Applicant: Dedeaux Properties APN: 0266-041-22 and 40 Ward: 6 Recommendation: Staff recommended that the Planning Commission adopt Resolution No. 2022-024 forwarding a recommendation to the Mayor and City Council recommending approval Development Code Amendment (Zoning Map Amendment) 21-03, Subdivision 21-09 (Tentative Parcel Map 20430) and Development Permit Type-D 21-15, based on the Findings of Fact and subject to the recommended Conditions of Approval; and adoption of the Mitigated Negative Declaration and approval of the Mitigation Monitoring and Reporting Program under the California Environmental Quality Act. Public Speakers Jeremy Krout Hank Mitchell Thomas Ruiz Ray Allard RESULT: NO RECOMMENDATION FOR CITY COUNCIL MOVER: Commissioner Quiel SECONDER: Commissioner Sanchez ABSTAIN: None AYES: Guerrero, Lopez, Sanchez, and Quiel NOES: Armstead, Flores, and Lewis ABSENT: Morales   Packet Pg. 225 Regular Meeting Minutes July 12, 2022 Planning Commission of the City of San Bernardino Page 5 July 19, 2022 5. Development Permit Type-P 20-08 Subject: A request to allow the development and establishment of a twenty- seven (27) unit multi-family residential complex on a parcel containing approximately 2.38 acres. Address: West side of N. Sterling Avenue, approximately 150 feet south of E. Marshall Boulevard Zone: Residential Medium (RM) Environmental Determination: Categorically Exempt, pursuant to §15332 (In- Fill Development Projects) of the State CEQA Guidelines Owner/Applicant: Mike Mahmoudi APN: 0272-371-59 Ward: 4 Recommendation: Staff recommended that the Planning Commission adopt Resolution No. 2022-038 approving Development Permit Type-P 20-08, based on the Findings of Fact and subject to the recommended Conditions of Approval; and finding the project subject to a Categorical Exemption under the California Environmental Quality Act. Public Speakers: Neil Derry Mellace Thomson Corrine Lamm Michelle Aguilar RESULT: APPROVED MOVER: Commissioner Sanchez SECONDER: Commissioner Lopez ABSTAIN: None AYES: Guerrero, Lopez, Sanchez, and Lewis NOES: Armstead, Quiel, and Flores ABSENT: Morales PLANNING COMMISSION REPORTS / ANNOUNCEMENTS DIRECTOR’S REPORT ADJOURNMENT The meeting adjourned at 8:57 pm. The next regular meeting of the Planning Commission will be held on Tuesday, August 9, 2022 at 6:00pm in the Board Room located at 201 North E Street, 3rd Floor, San Bernardino, California 92401. By: __________________________ Jessica Nametz   Packet Pg. 226 Appeal 22-02 For Development Permit Type-P 20-08 Presented by David Murray, Deputy Director/City Planner Community & Economic Development Department   Packet Pg. 227 Proposed Project: Development Permit Type-P 20-08: Development and establishment of a twenty -seven (27) unit multi-family residential complex. Project Site: West side of N. Sterling Avenue, between E. Marshall Boulevard and E. Lynwood Drive APN: 0272-372-59 Zone: Residential Medium (RM) Site Area: 2.38 acres   Packet Pg. 228 Aerial Map: PROJECT SITE E. Marshall BoulevardE. Marshall Boulevard N. Sterling AvenueN. Sterling AvenueE. Lynwood DriveE. Lynwood Drive   Packet Pg. 229 Zoning Map:   Packet Pg. 230 Existing Site:   Packet Pg. 231 Existing Site:   Packet Pg. 232 Analysis: The proposed twenty-seven (27) unit multi-family residential development is consistent with the policies of the City’s General Plan and complies with the standards of the City’s Development Code. “Multi-Family Dwellings” are permitted “by right” in the Residential Medium (RM) zone Site development subject to Development Permit approval by the Planning Commission for residential projects greater than 12 dwelling units or projects abutting a residential use in a residential land use district. Density: 12 residential dwellings per acre. Subject property: 2.38-acres allows up to 28 residential dwellings. 27 residential dwellings proposed Access: Provided off of N. Sterling Avenue: 45’ wide main driveway (Primary) and a 26’ wide driveway (Secondary – Emergency Vehicle Access Only) Off-Street Parking: Parking required: 74 Parking provided: 75 (27 units with 2-car garages: 54 standard spaces, 14 covered carport spaces, 6 guest spaces, and 1 handicapped parking space) Landscaping: -All new landscaping (21,256 square feet) along the project site frontage, within the parking lot area, and required setback areas. -Enhanced dense landscaping and a new six (6) foot high decorative block wall will be provided along the entire west, north and south property lines behind the front setback area to shield the proposed project from the adjacent multi-family residential developments.   Packet Pg. 233 Site Plan:   Packet Pg. 234 Renderings:   Packet Pg. 235 Renderings:   Packet Pg. 236 Landscaping Plan:   Packet Pg. 237 Planning Commission Action:Planning Commission Action: §July 12, 2022 – Staff presented a recommendation of approval to the Planning Commission for Development Permit Type-P 20-08 §The Planning Commission voted to approve the project (4-3) §Resolution No. 2022-038 was adopted, approving Development Permit Type-P 20-08   Packet Pg. 238 Recommendation: That the Mayor and City Council adopt Resolution No. 2022-206 DENYING Appeal 22-02, thereby upholding the Planning Commission’s finding the project categorically exempt under the California Environmental Quality Act and approval of Development Permit Type-P 20-08 allowing the development and establishment of a twenty-seven (27) unit multi-family residential complex on a parcel containing approximately 2.38 acres, located on the west side of N. Sterling (APN: 0272-372-59), between E. Marshall Boulevard and E. Lynwood Drive within the Residential Medium (RM) zone.   Packet Pg. 239 CALIFORNIA NEWSPAPER SERVICE BUREAU SBS# D A I L Y J O U R N A L C O R P O R A T I O N To the right is a copy of the notice you sent to us for publication in the SAN BERNARDINO COUNTY SUN. Please read this notice carefully and call us with any corrections. The Proof of Publication will be filed with the County Clerk, if required, and mailed to you after the last date below. Publication date(s) for this notice is (are): Mailing Address : 915 E FIRST ST, LOS ANGELES, CA 90012 Telephone (800) 788-7840 / Fax (800) 464-2839 Visit us @ www.LegalAdstore.com Jessica Nametz SAN BERNARDINO CITY DEV SERVICE 300 NORTH D ST #300 SAN BERNARDINO, CA 92418 HRG NOTICE OF HEARING 10.05.22 Legal Ad. 09/24/2022 Publication Total $183.20 $183.20 Notice Type: Ad Description COPY OF NOTICE 3628010 !A000006123837! The charge(s) for this order is as follows. An invoice will be sent after the last date of publication. If you prepaid this order in full, you will not receive an invoice. NOTICE OF PUB LIC HEARING Notice is hereby given that the City of San Bernardino Mayor and City Council will hold a public hearing on Wednesday,October 5,2022 at 7:00 p.m.in the Feldheym Public Library,Bing Wong Auditorium,555 W.6th Street,San Bernardino, California 92410,on the following item(s): APPEA L 22-02 FOR DEVE LOPMENT PERMIT TYPE- P 20-08 ---An appeal of the Planning Commission's approval of Development Permit Type-P 20-08 for the development and establishment of a twenty-seven (27) unit multi-family residential complex on a parcel containing approximately 2.38 acres.The project site is located on the west side of N.Sterling Avenue (APN: 0272-372-59),between E.Marshall Boulevard and E.Lynwood Drive, within the Residential Medium (RM)zone. Environmental Determination: Categorically Exempt,pursuant to Section 15332 (In-Fill Development Projects)of the State CEQA Guidelines. Property Owner/Applicant for DP-P 20-08:Mike Mahmoudi of 3164 Sterling,LLC Appeal Applicant:Neil Derry The Mayor and City Council of the City of San Bernardino welcomes your participation in evaluating these items.The Mayor and City Council will review the proposal and will consider the proposed environmental determination in making its decisions.The public is welcome to speak at the public hearing or to submit written comments prior to the hearing.For more information,please contact the City Clerk's Office by phone at (909)384-5002. If you challenge the resultant action of the Mayor and City Council in court,you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice,or in written correspondence delivered to the City Planning Division at,or prior to,the public hearing. 9/24/22 SBS-3628010#   Packet Pg. 240 7 7 4 PUBLIC HEARING City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager; Barbara Whitehorn, Agency Director of Administrative Services Department:Finance Subject:Public Hearing on Proceedings to Form Proposed Community Facilities District No. 2022-1 (Highland/Medical) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1) Adopt Resolution No. 2022-216 of the Mayor and City Council of the City of San Bernardino, California, Establishing Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino, County of San Bernardino, State of California, and the boundaries thereof and approving a Funding Agreement; 2) Adopt Resolution No. 2022-217 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. 2022-1 (Highland/Medical), 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; 3) Adopt Resolution No. 2022-218 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. 2022-1 (Highland/Medical) of the City of San   Packet Pg. 241 7 7 4 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 Therefore; 4) Adopt Resolution No. 2022-219 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. 2022-1 (Highland/Medical); and 5) Introduce, read by title only and waive further reading of Ordinance No. MC-1599 of the Mayor and City Council of the City of San Bernardino, California, Acting as the Legislative Body of Community Facilities District No. 2022-1 (Highland/Medical), Authorizing the Levy of Special Taxes in such Community Facilities District. Background The City has received a petition from PI Properties, LLC (the “Owner”), the owner of APN No. 0143-191-59-0000 (the “Property”) requesting the formation of the proposed community facilities district (the “CFD”), encompassing the Property, to finance: (a) Acquisition, design, construction of local and regional circulation systems, storm drain improvements, parkland and open space, and sewer and water improvement (the “Facilities”); and (b) The incidental expenses proposed to be incurred are: (i) the cost of planning and designing the public facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the proposed 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. On July 20, 2022, this City Council approved Resolution Nos. 2022-141 and 2022- 142, 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 September 7, 2022. Due to cancellation of the September 7, 2022, meeting, on August 17, 2022, this City Council approved Resolution Nos. 2022-186 and 2022-187 to amend the date of the public hearing to October 5, 2022. Discussion On October 5, 2022, this 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   Packet Pg. 242 7 7 4 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 approves the form of Funding Agreement which sets forth the terms and conditions under which the City will acquire improvements constructed by the developer, Warmington Residential California, Inc. (the “Developer”). The purpose of the Funding 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. The Resolution Determining Necessity authorizes the CFD to incur a bonded indebtedness in an aggregate principal amount not to exceed $5,000,000 for the purpose of financing the Facilities as described above and calls a special election for October 5, 2022, 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 $5,000,000. The City Clerk and the Owner have consented to hold the election on October 5, 2022. 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 City Council may adopt the Resolution Declaring Results of the Election 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 Ordinance Levying Special Taxes which authorizes the levy of special taxes within the CFD. 2021-2025 Strategic Targets and Goals This project is consistent with Key Target No. 1. Improved Operational & Financial Capacity and Key Target No. 4: Economic Growth & Development. This project will contribute to ensuring that the City is clean and attractive and provide infrastructure designed for long-term economic growth.   Packet Pg. 243 7 7 4 Fiscal Impact There is no fiscal impact to the City as the costs for formation of the CFD is paid through a deposit provided by the Developer, and on-going administrative costs are paid through the levy of special taxes within the CFD. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1) Adopt Resolution No. 2022-216 of the Mayor and City Council of the City of San Bernardino, California, Establishing Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino, County of San Bernardino, State of California and the Boundaries Thereof and Approving a Funding Agreement; 2) Adopt Resolution No. 2022-217 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. 2022-1 (Highland/Medical), 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; 3) Adopt Resolution No. 2022-218 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. 2022-1 (Highland/Medical) 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, the Incurring of a Bonded Indebtedness by the Community Facilities District and Establishing an Appropriations Limit Therefore; 4) Adopt Resolution No. 2022-219 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. 2022-1 (Highland/Medical); and 5) Introduce, read by title only and waive further reading of Ordinance No. 1594 of the Mayor and City Council of the City of San Bernardino, California, Acting as the Legislative Body of Community Facilities District No. 2022-1 (Highland/Medical), Authorizing the Levy of Special Taxes in such Community Facilities District. Attachments Attachment 1 Resolution 2022-216 Formation Attachment 2 Resolution 2022-217 Determining Necessity to Incur a Bonded Indebtedness Attachment 3 Resolution 2022-218 Calling a Special Election   Packet Pg. 244 7 7 4 Attachment 4 Resolution 2022-219 Declaring the Results of the Consolidated Special Elections Attachment 5 Ordinance No. MC-1599 Authorizing the Levy of Special Taxes Attachment 6 CFD Report Attachment 7 Funding Agreement Ward: Sixth Ward Synopsis of Previous Council Actions: On July 20, 2022, the Mayor and City Council adopted Resolution No. 2022-141, Declaring Intention to Form Community Facilities District No. 2022-1 (Highland/Medical), and Resolution No. 2022-142, Declaring Necessity for Community Facilities District No. 2022-1 (Highland/Medical) to Incur a Bonded Indebtedness. On August 17, 2022, the Mayor and City Council adopted Resolution No. 2022-186, Amending and Supplementing the Resolution Declaring Intention, and Resolution No. 2022-187, Amending and Supplementing the Resolution Declaring Necessity, to amend the date of the public hearings called by both resolutions to October 5, 2022.   Packet Pg. 245 Resolution No. 2022-216 RESOLUTION NO. 2022-216 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2022-1 (HIGHLAND/MEDICAL) OF THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AND THE BOUNDARIES THEREOF AND APPROVING A FUNDING AGREEMENT WHEREAS, on July 20, 2022, the City Council (the “City Council”) of the City of San Bernardino (the “City”) adopted the Resolution of Intention (the “Resolution of Intention”) stating that a community facilities district to be known as “Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino, County of San Bernardino, State of California” (“CFD No. 2022-1”), 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. 2022-1 for September 7, 2022; and WHEREAS, on August 17, 2022, the City Council adopted a Resolution Amending and Supplementing the Resolution of Intention to amend the date of the public hearing on the proposed formation of CFD No. 2022-1 from September 7, 2022 to October 5, 2022; and WHEREAS, CFD No. 2022-1 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. 2022-1 and the financing of the acquisition, design, construction of local and regional circulation systems, storm drain improvements, parkland and open space, and sewer and water improvements, and it is proposed that CFD No. 2022-1 will be authorized to issue bonds and incur a bonded indebtedness for the purpose of financing such Facilities in the aggregate principal amount of $5,000,000; and WHEREAS, notice was published and mailed to the owner of all of the property in CFD No. 2022-1 relative to the intention of the City Council to establish CFD No. 2022-1, the levy of special taxes therein, the provision of public facilities therein and the incurring of a bonded indebtedness by CFD No. 2022-1 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. 2022-1, and Warmington Residential California, a California corporation; and WHEREAS, on October 5, 2022, the City Council conducted the public hearing as required by law relative to the formation of CFD No. 2022-1, the levy of special taxes therein, the provision of public facilities therein, and the incurring of a bonded indebtedness by CFD No. 2022-1; and   Packet Pg. 246 Resolution No. 2022-216 -2- 9 9 7 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. 2022-1, and an estimate of the fair and reasonable costs of providing such public facilities, as required by Section 53321.5 of the Act; and WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of CFD No. 2022-1, 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. 2022-1, 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. 2022-1; 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. 2022-1. 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 October 5, 2022, 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. 2022-1, and the incurring of bonded indebtedness by and for CFD No. 2022-1 and the annual levying of specified special taxes on the taxable property within CFD No. 2022-1 to pay principal of and interest on bonds to be issued by and for CFD No. 2022-1 to finance the Facilities and other obligations which are described in Section 3(a) hereof; (c) The boundary map of CFD No. 2022-1 was recorded on July 26, 2022, pursuant to Sections 3111 and 3113 of the California Streets and Highways Code, at page 42 in Book 90 of Maps of Assessment and Community Facilities Districts, and as Instrument No. 2022- 0258073 in the official records of the County of San Bernardino; (d) All prior proceedings with respect to the formation of CFD No. 2022-1 prior to and during the public hearing with respect to the formation of CFD No. 2022-1 which was conducted by the City Council on October 5, 2022, 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. 2022-1, or the levying of the special taxes, or the incurring of a bonded indebtedness by CFD No. 2022-1, or the furnishing of specified types of public   Packet Pg. 247 Resolution No. 2022-216 -3- 9 9 7 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. 2022-1 (Highland/Medical) of the City of San Bernardino, County of San Bernardino, State of California, and CFD No. 2022-1 should be established; and (g) Twelve (12) persons have not been registered to vote within the territory of CFD No. 2022-1 for each of the 90 days preceding the close of the public hearing on October 5, 2022, 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. 2022-1 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. 2022-1 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. 2022-1 (Highland/Medical) of the City of San Bernardino, County of San Bernardino, State of California, is hereby established. The boundaries of CFD No. 2022-1 are set forth and shown on the map entitled “Proposed Boundary Map - Community Facilities District No. 2022-1 (Highland/Medical) 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. 2022-1 (the “Facilities”) include but are not limited to: (a) Acquisition, design, construction of local and regional circulation systems, storm drain improvements, parkland 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 CFD No. 2022-1, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the proposed CFD No. 2022-1, 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. 2022-1, shall be annually levied within CFD No. 2022-1.   Packet Pg. 248 Resolution No. 2022-216 -4- 9 9 7 Under no circumstances will the Special Tax levied in any fiscal year against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within CFD No. 2022-1 by more than 10 percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. A parcel shall be considered “used for private residential purposes” not later than the date on which an occupancy permit or the equivalent for private residential use is issued for such parcel. For further particulars as to the rate and method of apportionment of the Special Taxes to be levied on parcels of taxable property in CFD No. 2022-1 reference is made to the attached and incorporated Exhibit “A” (the “Rate and Method”) which sets forth in sufficient detail the rate and method of apportionment of the Special Taxes to allow each landowner or resident within each CFD No. 2022-1 to clearly estimate the maximum amount that such person will have to pay. The conditions under which the obligation to pay 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 ordinary ad valorem property taxes; provided however, that CFD No. 2022-1 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent assessor’s parcels as permitted by the Act. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the Special Taxes shall attach to all non-exempt real property in CFD No. 2022-1, and that lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien is canceled in accordance with law or until collection of the Special Taxes ceases. SECTION 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. 2022-1, 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. 2022-1, and to enter into an agreement, by resolution, with the person or entity advancing the funds or work-in-kind to repay funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council.   Packet Pg. 249 Resolution No. 2022-216 -5- 9 9 7 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 by allowing the owners of property within CFD No. 2022-1 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. 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 City 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. 2022-1 incurring a bonded indebtedness, (ii) the proposition with respect to the levy of special taxes on parcels of taxable property within CFD No. 2022-1 to pay the principal of and interest on the bonds of CFD No. 2022-1, and (iii) the proposition with respect to establishing an appropriations limit for CFD No. 2022-1 in the amount of $5,000,000 (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. 2022-1 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. 2022-1 the propositions with respect to (i) CFD No. 2022-1 incurring a bonded indebtedness, (ii) the levy of special taxes to pay the principal of and interest on the bonds of CFD No. 2022-1, 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. 2022-1 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. 2022-1 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   Packet Pg. 250 Resolution No. 2022-216 -6- 9 9 7 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 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. 2022-1. (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.   Packet Pg. 251 Resolution No. 2022-216 -7- 9 9 7 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 necessary 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 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. SECTION 11. CEQA. The City Council finds this Resolution is not subject to the California Environmental Quality Act (“CEQA”) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 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 5th day of October, 2022. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, City Clerk Attest: Sonia R. Carvalho, City Attorney   Packet Pg. 252 Resolution No. 2022-216 -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. 2022-216, adopted at a regular meeting held on the 5th day of October, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2022. ______________________________ Genoveva Rocha, City Clerk   Packet Pg. 253 Resolution No. 2022-___ A-1 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR COMMUNITY FACILITIES DISTRICT NO. 2022-1 (HIGHLAND/MEDICAL) 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. 2022-1 (Highland/Medical) of the City of San Bernardino ("CFD No. 2022-1"). 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. 2022-1 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: “Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel as a Single Family Residential Property with a stand-alone Residential Unit. "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 actual or reasonably estimated costs related to the administration of CFD No. 2022-1, levy on the Special Tax therein and payment of debt service on the outstanding Bonds, including but not limited to, 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 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. 2022-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022-1 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2022-1 and any major property owner associated with applicable federal and state securities laws and the Act; litigation related to or arising out of CFD No. 2022-1; legal costs; compliance with continuing disclosure undertakings, the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special   Packet Pg. 254 Resolution No. 2022-___ A-2 Taxes; the costs of the City, CFD No. 2022-1 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. 2022- 1 for any other administrative purposes of CFD No. 2022-1, 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 May 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. 2022-1 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.   Packet Pg. 255 Resolution No. 2022-___ A-3 "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. "CFD” or “CFD No. 2022-1" means Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino established by the City under the Act. “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. “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. 2022-1, or its designee. “Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 6624 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 May 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 6624 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. 2022-1 in any Fiscal Year on any Assessor’s Parcel.   Packet Pg. 256 Resolution No. 2022-___ A-4 “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 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. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA. “RMA" means this Rate and Method of Apportionment of Special Taxes. “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. 2022-1 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   Packet Pg. 257 Resolution No. 2022-___ A-5 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. 2022-1 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. 2022-1, 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. "Welfare Exempt Property" means, in any Fiscal Year, all Assessor’s Parcels within the boundaries of CFD No. 2022-1 that have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code. B. SPECIAL TAX Commencing Fiscal Year 2022-2023 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 2022-2023, each Assessor’s Parcel within CFD No. 2022-1 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   Packet Pg. 258 Resolution No. 2022-___ A-6 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 2022-2023 shall be determined pursuant to Table 1 below. TABLE 1 ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY FISCAL YEAR 2022-2023 Land Use Category Taxable Unit Building Square Footage Assigned Special Tax Per Taxable Unit 1. Single Family Residential Property RU Less than 1,800 sq. ft $2,790 2. Single Family Residential Property RU 1,800 sq. ft to 2,000 sq. ft $3,080 3. Single Family Residential Property RU Greater than 2,000 sq. ft $3,209 4. Multifamily Property Acre N/A $49,620 5. Non-Residential Property Acre N/A $49,620   Packet Pg. 259 Resolution No. 2022-___ A-7 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 net taxable 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 $49,620 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 $49,620 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.   Packet Pg. 260 Resolution No. 2022-___ A-8 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 $49,620 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 $49,620 per Acre. E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing Fiscal Year 2022-2023 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 for which an occupancy permit for a private residential use has been issued 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%)   Packet Pg. 261 Resolution No. 2022-___ A-9 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 6.46 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 6.46 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 6.46 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E. Welfare Exempt Property shall be exempt from the payment of the Special Tax so long as the property qualifies as a Welfare Exempt Property. G. PREPAYMENT OF SPECIAL TAX The following additional definitions apply to this Section G: “CFD Public Facilities” means $4,000,000 expressed in 2022 dollars, which shall increase by the Construction Inflation Index on July 1, 2023, 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. 2022-1, 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. 2022-1. “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   Packet Pg. 262 Resolution No. 2022-___ A-10 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. 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.   Packet Pg. 263 Resolution No. 2022-___ A-11 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 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   Packet Pg. 264 Resolution No. 2022-___ A-12 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. 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 non-delinquent 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   Packet Pg. 265 Resolution No. 2022-___ A-13 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 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 2064-2065 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. 2022-1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2022-1 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. 2022-1 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. 2022-1 may collect Special Tax at a   Packet Pg. 266 Resolution No. 2022-___ A-14 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.   Packet Pg. 267 Resolution No. 2022-217 Resolution 2022-217 October 5, 2022 Page 1 of 6 1 0 0 3 RESOLUTION NO. 2022-217 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. 2022-1 (HIGHLAND/MEDICAL), 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 July 20, 2022, 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. 2022-142 declaring the necessity for Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino, County of San Bernardino, State of California (“CFD No. 2022-1”), to incur a bonded indebtedness for the purpose of providing and financing the acquisition, design, construction of local and regional circulation systems, storm drain improvements, parkland 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. 2022-1, and calling a public hearing on the proposed indebtedness for September 7, 2022; and WHEREAS, on August 17, 2022, the City Council adopted a Resolution Amending and Supplementing the Resolution Declaring Necessity to amend the date of the public hearing on the proposed indebtedness for CFD No. 2022-1 from September 7, 2022 to October 5, 2022; and WHEREAS, notice was published and mailed to the owner of all of the property in CFD No. 2022-1 relative to the intention of the City Council to establish CFD No. 2022-1, to incur a bonded indebtedness for CFD No. 2022-1the levy of special taxes therein, the provision of public facilities therein, and of the time and place of the public hearing; and WHEREAS, on October 5, 2022, at the time and place of the hearing and the notice thereof, the City Council conducted the public hearing and afforded all persons interested,   Packet Pg. 268 Resolution No. 2022-217 Resolution 2022-217 October 5, 2022 Page 2 of 6 1 0 0 3 including persons owning property within CFD No. 2022-1, an opportunity to be heard on the proposed authorization to incur bonded indebtedness, and no protests were received; and WHEREAS, on October 5, 2022, 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. 2022-1; 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. 2022-1; and WHEREAS, the City Council has determined that it is necessary that a bonded indebtedness for CFD No. 2022-1 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. 2022-1, being the landowner of CFD No. 2022-1, 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. 2022-1 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. 2022-1 will pay for the bonded indebtedness. SECTION 4. Bond Authorization. The amount of the bonded indebtedness of CFD No. 2022-1 may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the indebtedness is to be incurred as authorized pursuant to the Act. The amount of the indebtedness to be authorized for CFD No. 2022-1 is $5,000,000. 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, inspection, legal, fiscal and financial consultant fees, bond and other reserve funds and interest on any bonds of CFD No. 2022-1 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,   Packet Pg. 269 Resolution No. 2022-217 Resolution 2022-217 October 5, 2022 Page 3 of 6 1 0 0 3 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 exclusively from the annual levy of the special tax within CFD No. 2022-1, 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. 2022-1 with respect to the proposed bonded indebtedness shall be as follows: PROPOSITION B: Shall Community Facilities District No. 2022-1 (Highland/Medical) 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 $5,000,000 for the specific purposes set forth in the Resolution of Formation adopted by the City Council of the City of San Bernardino on October 5, 2022? SECTION 8. Election. The date of the special election with respect to the incurring of the aforementioned bonded indebtedness for CFD No. 2022-1, at which time the proposition set forth in Section 5 hereof shall be submitted to the appropriate qualified voters of CFD No. 2022- 1 is October 5, 2022, 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. 2022-1, the vote in the special election will be by the landowners of CFD No. 2022-1 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. 2022-1, 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. 2022-1 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. 2022-1 which has also been called for October 5, 2022. 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 with 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   Packet Pg. 270 Resolution No. 2022-217 Resolution 2022-217 October 5, 2022 Page 4 of 6 1 0 0 3 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. 2022-1 incurring bonded indebtedness for the purposes for which such indebtedness by CFD No. 2022-1, is to be incurred and bonds of CFD No. 2022-1 are to be issued (the “Bond Proposition”), the incurring of such bonded indebtedness and the issuance of bonds of CFD No. 2022-1 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. 2022-1 will incur bonded indebtedness and issue bonds. SECTION 10. CEQA. The City Council finds this Resolution is not subject to the California Environmental Quality Act (“CEQA”) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 11. 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 12. Effective Date. This Resolution shall become effective immediately.   Packet Pg. 271 Resolution No. 2022-217 Resolution 2022-217 October 5, 2022 Page 5 of 6 1 0 0 3 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 5th day of October, 2022. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, City Clerk Attest: Sonia R. Carvalho, City Attorney   Packet Pg. 272 Resolution No. 2022-___ -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. 2022-217 adopted at a regular meeting held on the 5 day of September, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2022. ______________________________ Genoveva Rocha, City Clerk   Packet Pg. 273 Resolution No. 2022-218 RESOLUTION NO. 2022-218 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. 2022-1 (HIGHLAND/MEDICAL) 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. 2022-1 (Highland/Medical) of the City of San Bernardino, County of San Bernardino, State of California (“CFD No. 2022-1”), 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. 2022-1 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. 2022-1 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. 2022-1 the proposition relating to the annual levy of special taxes on taxable property within CFD No. 2022-1 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. 2022-1 a proposition with respect to establishing an appropriations limit for CFD No. 2022-1; 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. 2022-1. 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.   Packet Pg. 274 Resolution No. 2022-218 2 1 0 0 4 2022-1 for each of the 90 days preceding the close of the public hearing on October 5, 2022; (iii) pursuant to Section 53326 of the California Government Code, as a result of the 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. 2022-1 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. 2022-1 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. 2022-1 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 and the election on the proposition of CFD No. 2022-1 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 October 5, 2022, (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 October 5, 2022. SECTION 2. Call of Election. The City Council hereby calls and schedules special elections for October 5, 2022, within and for CFD No. 2022-1 on (i) the proposition with respect to the annual levy of special taxes on taxable property within CFD No. 2022-1 for the payment of principal of and interest on the bonds of CFD No. 2022-1, 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. 2022-1. SECTION 3. Propositions. The propositions to be submitted to the voters of CFD No. 2022-1 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. 2022-1 (Highland/Medical) 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 October 5, 2022 (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 October 5, 2022 be approved?   Packet Pg. 275 Resolution No. 2022-218 3 1 0 0 4 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 $5,000,000 be approved? SECTION 4. Consolidation of Elections. The special election called hereby on the propositions to be submitted to the voters of CFD No. 2022-1, as set forth in Section 3 hereof, shall be consolidated with the special election on the proposition of CFD No. 2022-1 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. 2022-1 incurring a bonded indebtedness, (ii) the proposition with respect to the levy of special taxes on taxable property within CFD No. 2022-1 to pay the principal of and interest on the bonds of CFD No. 2022-1, and (iii) the proposition with respect to establishing an appropriations limit for CFD No. 2022-1 in the amount of $5,000,000 (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 October 5, 2022. (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 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   Packet Pg. 276 Resolution No. 2022-218 4 1 0 0 4 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. 2022-1. (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. 2022-1 incurring bonded indebtedness for the purposes for which such indebtedness is to be incurred (the “Bond Proposition”) and bonds of CFD No. 2022-1 are to be issued, the incurring of such bonded indebtedness and the issuance of bonds of CFD No. 2022-1 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 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. 2022-1 will incur bonded indebtedness and issue bonds.   Packet Pg. 277 Resolution No. 2022-218 5 1 0 0 4 SECTION 8. CEQA. The City Council finds this Resolution is not subject to the California Environmental Quality Act (“CEQA”) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 9. 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 10. 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 5th day of October, 2022. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, City Clerk Attest: Sonia R. Carvalho, City Attorney   Packet Pg. 278 Resolution No. 2022-218 6 1 0 0 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. 2022-218, adopted at a regular meeting held on the 5th day of October, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2022. ______________________________ Genoveva Rocha, City Clerk   Packet Pg. 279 Resolution No. 2022-218 A-1 EXHIBIT A OFFICIAL BALLOT CONSOLIDATED SPECIAL ELECTIONS FOR COMMUNITY FACILITIES DISTRICT NO. 2022-1 (HIGHLAND/MEDICAL) OF THE CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO STATE OF CALIFORNIA October 5, 2022 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. 2022-1 (Highland/Medical) of the City of San Bernardino, County of San Bernardino, State of California, 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. 2022-1 (Highland/Medical) 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 October 5, 2022 (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 October 5, 2022? YES NO PROPOSITION B: Shall Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino, County of San Bernardino, State of California, subject to accountability measures required pursuant to Government Code Sections 53410 and 53411, incur a bonded indebtedness in an amount not to exceed $5,000,000 for the specific purposes set forth in the Resolution of Formation adopted by the City Council of the City of San Bernardino on October 5, 2022? YES NO   Packet Pg. 280 Resolution No. 2022-218 A-2 PROPOSITION C: Shall Community Facilities District No. 2022-1 (Highland/Medical) 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 $5,000,000? 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.   Packet Pg. 281 Resolution No. 2022-219 RESOLUTION NO. 2022-219 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. 2022-1 (HIGHLAND/MEDICAL) WHEREAS, on October 5, 2022, 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. 2022-1 (Highland/Medical) of the City of San Bernardino, County of San Bernardino, State of California (the “CFD No. 2022-1”), to incur a bonded indebtedness for CFD No. 2022-1 for the purposes of providing certain public facilities and calling a special election for CFD No. 2022-1 on the proposition for incurring such bonded indebtedness for October 5, 2022, 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. 2022-1 to pay principal of and interest on such bonds, and (ii) establishing an appropriations limit for CFD No. 2022-1; and WHEREAS, on October 5, 2022, the City Council also adopted a resolution calling a special election for October 5, 2022, for submitting to the qualified electors of CFD No. 2022-1 the proposition with respect to the annual levy of special taxes on taxable property within CFD No. 2022-1 to pay the principal of and interest on the bonds thereof and the proposition with respect to establishing an appropriations limit for CFD No. 2022-1, and providing for the consolidation of that election with the election on the proposition of CFD No. 2022-1 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. 2022-1 and act as the election official therefor, with respect to the canvass of the ballot returned and the results of the consolidated special election, certifying that more than two-thirds of the votes cast upon the propositions submitted to the voters in the consolidated special election in CFD No. 2022-1 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. 2022-1 at the time of the close of the protest hearing on October 5, 2022, and pursuant to Section 53326 of the California Government Code (“Section 53326”) the vote in the consolidated special elections for CFD No. 2022-1 was, therefore, to be by the landowners owning land within CFD No. 2022-1, with each landowner having one vote for each acre or portion of an acre of land that he or she owned within CFD No. 2022-1 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 PI Properties, LLC, the owner of all of the   Packet Pg. 282 Resolution No. 2022-219 2 1 0 0 5 taxable property included within the boundaries of CFD No. 2022-1 (the “Property Owner”) by 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 October 5, 2022; (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 10.10 acres in CFD No. 2022-1, was entitled to a total of 11 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 the voted ballot; (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. 2022-1, 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. 2022-1, is therefore authorized to take the necessary action to have CFD No. 2022-1 incur a bonded indebtedness in an amount not to exceed $5,000,000, to annually levy special taxes on taxable property within CFD No. 2022-1, in an amount sufficient to pay the principal of and interest on such bonds, and (x) an appropriations limit for CFD No. 2022-1 has been established in the amount of $5,000,000. SECTION 2. Declaration of Results. All votes voted in the consolidated special elections on the propositions with respect to (i) CFD No. 2022-1 incurring a bonded indebtedness in an amount not to exceed $5,000,000; (ii) the annual levy of special taxes on taxable property within CFD No. 2022-1 to pay the principal of and interest on the bonds of CFD No. 2022-1; and (iii) establishing an appropriations limit for CFD No. 2022-1 in the amount of $5,000,000 were voted in favor thereof, and all such propositions carried. The aggregate principal amount of the bonded indebtedness to be incurred by CFD No. 2022-1 shall not exceed $5,000,000. 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. 2022-1, is authorized (i) to have CFD No. 2022-1 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. 2022-1; (ii) after CFD No. 2022-1 has incurred a bonded indebtedness and issued bonds therefor, to annually levy special taxes on taxable property within CFD No. 2022-1 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 October 5, 2022; and (iii) an appropriations limit has been established for CFD No. 2022-1 in the amount of $5,000,000. 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. SECTION 5. CEQA. The City Council finds this Resolution is not subject to the California Environmental Quality Act (“CEQA”) in that the activity is covered by the general   Packet Pg. 283 Resolution No. 2022-219 3 1 0 0 5 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 5th day of October, 2022. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, City Clerk Attest: Sonia R. Carvalho, City Attorney   Packet Pg. 284 Resolution No. 2022-219 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. 2022-219, adopted at a regular meeting held on the 5th day of October, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2022. ______________________________ Genoveva Rocha, City Clerk   Packet Pg. 285 Ordinance MC-1599 ORDINANCE NO. MC-1599 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. 2022-1 (HIGHLAND/MEDICAL), 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. 2022-1 (Highland/Medical) 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. 2022-1 (HIGHLAND/MEDICAL), 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,   Packet Pg. 286 Ordinance MC-1599 2 1 0 0 6 which lien shall be a continuing lien and shall secure each levy of the special taxes. The lien of 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 October 5, 2022. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 19th day of October, 2022. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, City Clerk Attest: Sonia R. Carvalho, City Attorney   Packet Pg. 287 Ordinance MC-1599 3 1 0 0 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 Ordinance No. MC-1599, which was regularly introduced at a regular meeting of the City Council of the City of San Bernardino duly held on the 5th day of October, 2022, and was adopted at a regular meeting of the City Council duly held on the 19th day of October, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2022. ______________________________ Genoveva Rocha, City Clerk   Packet Pg. 288 A-1 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR COMMUNITY FACILITIES DISTRICT NO. 2022-1 (HIGHLAND/MEDICAL) 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. 2022-1 (Highland/Medical) of the City of San Bernardino ("CFD No. 2022-1"). 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. 2022-1 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: “Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel as a Single Family Residential Property with a stand-alone Residential Unit. "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 actual or reasonably estimated costs related to the administration of CFD No. 2022-1, levy on the Special Tax therein and payment of debt service on the outstanding Bonds, including but not limited to, 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 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. 2022-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022-1 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2022-1 and any major property owner associated with applicable federal and state securities laws and the Act; litigation related to or arising out of CFD No. 2022-1; legal costs; compliance with continuing disclosure undertakings, the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special   Packet Pg. 289 A-2 Taxes; the costs of the City, CFD No. 2022-1 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. 2022- 1 for any other administrative purposes of CFD No. 2022-1, 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 May 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. 2022-1 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.   Packet Pg. 290 A-3 "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. "CFD” or “CFD No. 2022-1" means Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino established by the City under the Act. “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. “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. 2022-1, or its designee. “Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 6624 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 May 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 6624 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. 2022-1 in any Fiscal Year on any Assessor’s Parcel.   Packet Pg. 291 A-4 “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 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. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA. “RMA" means this Rate and Method of Apportionment of Special Taxes. “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. 2022-1 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   Packet Pg. 292 A-5 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. 2022-1 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. 2022-1, 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. "Welfare Exempt Property" means, in any Fiscal Year, all Assessor’s Parcels within the boundaries of CFD No. 2022-1 that have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code. B. SPECIAL TAX Commencing Fiscal Year 2022-2023 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 2022-2023, each Assessor’s Parcel within CFD No. 2022-1 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   Packet Pg. 293 A-6 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 2022-2023 shall be determined pursuant to Table 1 below. TABLE 1 ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY FISCAL YEAR 2022-2023 Land Use Category Taxable Unit Building Square Footage Assigned Special Tax Per Taxable Unit 1. Single Family Residential Property RU Less than 1,800 sq. ft $2,790 2. Single Family Residential Property RU 1,800 sq. ft to 2,000 sq. ft $3,080 3. Single Family Residential Property RU Greater than 2,000 sq. ft $3,209 4. Multifamily Property Acre N/A $49,620 5. Non-Residential Property Acre N/A $49,620   Packet Pg. 294 A-7 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 net taxable 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 $49,620 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 $49,620 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.   Packet Pg. 295 A-8 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 $49,620 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 $49,620 per Acre. E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing Fiscal Year 2022-2023 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 for which an occupancy permit for a private residential use has been issued 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%)   Packet Pg. 296 A-9 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 6.46 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 6.46 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 6.46 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E. Welfare Exempt Property shall be exempt from the payment of the Special Tax so long as the property qualifies as a Welfare Exempt Property. G. PREPAYMENT OF SPECIAL TAX The following additional definitions apply to this Section G: “CFD Public Facilities” means $4,000,000 expressed in 2022 dollars, which shall increase by the Construction Inflation Index on July 1, 2023, 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. 2022-1, 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. 2022-1. “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   Packet Pg. 297 A-10 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. 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.   Packet Pg. 298 A-11 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 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   Packet Pg. 299 A-12 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. 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 non-delinquent 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   Packet Pg. 300 A-13 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 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 2064-2065 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. 2022-1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2022-1 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. 2022-1 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. 2022-1 may collect Special Tax at a   Packet Pg. 301 A-14 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.   Packet Pg. 302 CITY OF SAN BERNARDINO Public Hearing Report CFD NO. 2022-1 (HIGHLAND/MEDICAL) OCTOBER 5, 2022   Packet Pg. 303 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 D Amended Resolution of Intention _______________________________________         Packet Pg. 304 1 Introduction Page | 1  City of San Bernardino CFD No. 2022-1 (Highland/Medical) Public Hearing Report Background On July 20, 2022, the Mayor and City Council of the City of San Bernardino (the “City”), adopted a Resolution of Intention to form Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino (the “CFD No. 2022-1” or “District”), Resolution No. 2022-141, 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”). On August 17, 2022 the City adopted a Resolution Amending and Supplementing the Resolution of Intention to amend the date of the public hearing on the proposed formation of CFD No. 2022-1 from September 7, 2022 to October 5, 2022. The CFD No. 2022-1 is currently comprised of Tract Map No. 20494 that includes one undeveloped parcel and approximately 10.10 gross acres. The proposed development includes 95 detached single family homes. The property is generally located south of W. Highland Ave. west of Medical Center Dr. For a map showing the boundaries of CFD No. 2022-1 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. 2022-1; 2. A brief description of the Facilities and Services required at the time of formation to meet the needs of CFD No. 2022-1. 3. A brief description of the Boundaries of CFD No. 2022-1; 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 and Resolution Amending the Resolution of Intention as previously approved and adopted and is included in Appendix C and Appendix D, respectively.   Packet Pg. 305 2 Description of Facilities Page | 2  City of San Bernardino CFD No. 2022-1 (Highland/Medical) 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. 2022-1 and financed with the proceeds of special taxes and bonds issued by CFD No. 2022-1 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. 2022-1, 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. 2022-1, including legal fees, fees of consultants, engineering, planning, designing and the annual costs to administer CFD No. 2022-1 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. 2022-1. Bond Authorization Amounts The maximum authorized bonded indebtedness is $5,000,000 for CFD No. 2022-1.   Packet Pg. 306 3 Cost Estimate Page | 3  City of San Bernardino CFD No. 2022-1 (Highland/Medical) 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. 2022- 1 Bonds is estimated to be $2,886,975 based upon current dollars (Fiscal Year 2022-23). b) The total facilities eligible to be funded by bond proceeds is $2,895,469, 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. 2022-1 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. 2022-1 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 $22,129 $22,129 Regional Circulation Fee $231,325 $231,325 Storm Drain Fee $372,961 $372,961 Parkland and Open Space Fee $904,197 $904,197 Sewer Connection Fee (3 Bedroom Units) $35,280 $35,280 Sewer Connection Fee (4 Bedroom Units) $112,560 $112,560 Sewer Capacity Charge $332,500 $332,500 Water Connection Fee (3/4” Meter) $884,517 $876,023 Total City $2,895,469 $2,886,975 Total Eligible Fees/Improvements $2,895,469 $2,886,975 Incidental Financing Costs $653,025 Total Funded by Bond Proceeds $3,540,000 Total Fees/Improvements to be Funded by Developer $8,494 (1) Amounts are allocated based upon estimated bond sizing and may change abased upon market conditions at the time  of bond issuance.    Packet Pg. 307 4 Proposed Development Page | 4  City of San Bernardino CFD No. 2022-1 (Highland/Medical) Public Hearing Report The CFD No. 2022-1 includes approximately 10.10 gross acres on one undeveloped property within Tract 20494. The District is generally located south of W. Highland Ave. west of Medical Center Dr. As of Fiscal Year 2022-23 the proposed CFD No. 2022-1 includes the following Assessor's Parcel Numbers: Assessor’s Parcel Number 0143-191-59 A map showing the boundaries of CFD No. 2022-1 is included in Appendix B.   Packet Pg. 308 5 Rate and Method of Apportionment Page | 5  City of San Bernardino CFD No. 2022-1 (Highland/Medical) Public Hearing Report The Rate and Method of Apportionment allows each property owner within CFD No. 2022-1 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. 2022-1 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. 2022-1, unless exempted by law or by the Rate and Method proposed for CFD No. 2022-1, shall be taxed for the purpose of providing necessary facilities to serve the District. The Boundary Map for CFD No. 2022-1 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 $2,790 to $3,209 per Residential Unit for Single Family Residential Property and $49,620 per Acre for Multifamily Property for Fiscal Year 2022-2023. 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. 2022-1 for uncollected Special Taxes associated with the levy of such Special Taxes, but the Special Tax shall not be levied after 2064-2065 Fiscal Year. For particulars as to the Rate and Method for CFD No. 2022-1, see the attached and incorporated in Appendix A.   Packet Pg. 309 6 Certifications Page | 6  City of San Bernardino CFD No. 2022-1 (Highland/Medical) 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. 2022-1 and benefits the lands within said CFD No. 2022-1. 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: October 5, 2022 SPICER CONSULTING GROUP, LLC __________________________ SHANE SPICER SPECIAL TAX CONSULTANT FOR CITY OF SAN BERNARDINO SAN BERNARDINO COUNTY STATE OF CALIFORNIA   Packet Pg. 310 APPENDIX A Rate and Method of Apportionment   Packet Pg. 311   City of San Bernardino   Community Facilities District No. 2022‐1 (Highland/Medical)  Page 1  RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR  COMMUNITY FACILITIES DISTRICT NO. 2022‐1 (HIGHLAND/MEDICAL)  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. 2022‐1 (Highland/Medical) of the City of San Bernardino ("CFD No. 2022‐ 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.  2022‐1 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:    “Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that  shares an Assessor’s Parcel as a Single Family Residential Property with a stand‐alone Residential Unit.    "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 actual or reasonably estimated costs related to the administration  of CFD No. 2022‐1, levy on the Special Tax therein and payment of debt service on the outstanding Bonds,  including but not limited to,  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 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. 2022‐1 or any designee thereof of complying with arbitrage rebate  requirements; the costs to the City, CFD No. 2022‐1 or any designee thereof of complying with continuing  disclosure requirements of the City, CFD No. 2022‐1 and any major property owner associated with  applicable federal and state securities laws and the Act; litigation related to or arising out of CFD No. 2022‐ 1; legal costs; compliance with continuing disclosure undertakings, 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. 2022‐1 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. 2022‐1 for any other administrative purposes of CFD  No. 2022‐1, including attorney’s fees and other costs related to commencing and pursuing to completion  any foreclosure of delinquent Special Taxes.      Packet Pg. 312   City of San Bernardino   Community Facilities District No. 2022‐1 (Highland/Medical)  Page 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 May 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. 2022‐1 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” or “CFD No. 2022‐1" means Community Facilities District No. 2022‐1 (Highland/Medical) of the City  of San Bernardino established by the City under the Act.    “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.    “City” means the City of San Bernardino, State of California.      Packet Pg. 313   City of San Bernardino   Community Facilities District No. 2022‐1 (Highland/Medical)  Page 3  "City Council" means the City Council of the City of San Bernardino, acting as the Legislative Body of CFD  No. 2022‐1, or its designee.    “Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 6624 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 May 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 6624 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. 2022‐1 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    Packet Pg. 314   City of San Bernardino   Community Facilities District No. 2022‐1 (Highland/Medical)  Page 4  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.  An Accessory Dwelling Unit that shares  an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit  for purposes of this RMA.    “RMA" means this Rate and Method of Apportionment of Special Taxes.    “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.  2022‐1 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. 2022‐1  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. 2022‐1, 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.    Packet Pg. 315   City of San Bernardino   Community Facilities District No. 2022‐1 (Highland/Medical)  Page 5  "Welfare Exempt Property" means, in any Fiscal Year, all Assessor’s Parcels within the boundaries of CFD  No. 2022‐1 that have been granted a welfare exemption by the County under subdivision (g) of Section  214 of the Revenue and Taxation Code.    B. SPECIAL TAX     Commencing Fiscal Year 2022‐2023 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 2022‐2023, each Assessor’s Parcel within CFD No. 2022‐1 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).    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.            Packet Pg. 316   City of San Bernardino   Community Facilities District No. 2022‐1 (Highland/Medical)  Page 6  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 2022‐2023 shall be determined  pursuant to Table 1 below.    TABLE 1  ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY  FISCAL YEAR 2022‐2023    Land Use Category  Taxable  Unit Building Square Footage  Assigned  Special Tax Per  Taxable Unit  1.  Single Family Residential Property RU Less than 1,800 sq. ft $2,790  2. Single Family Residential Property RU 1,800 sq. ft to 2,000 sq. ft $3,080  3. Single Family Residential Property RU Greater than 2,000 sq. ft $3,209  4. Multifamily Property Acre N/A $49,620  5. Non‐Residential Property Acre N/A $49,620    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 net taxable 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.        Packet Pg. 317   City of San Bernardino   Community Facilities District No. 2022‐1 (Highland/Medical)  Page 7  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 $49,620 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 $49,620 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 $49,620 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 $49,620 per Acre.    E.  METHOD OF APPORTIONMENT OF THE SPECIAL TAX    Commencing Fiscal Year 2022‐2023 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.      Packet Pg. 318   City of San Bernardino   Community Facilities District No. 2022‐1 (Highland/Medical)  Page 8  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 for which an occupancy permit for a private residential use  has been issued 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 6.46 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 6.46 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 6.46 Acres will be classified as Provisional Undeveloped Property, and  will be subject to Special Tax pursuant to Step Five in Section E.    Welfare Exempt Property shall be exempt from the payment of the Special Tax so long as the property  qualifies as a Welfare Exempt Property.    G. PREPAYMENT OF SPECIAL TAX    The following additional definitions apply to this Section G:    “CFD Public Facilities” means $4,000,000 expressed in 2022 dollars, which shall increase by the  Construction Inflation Index on July 1, 2023, 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. 2022‐1, 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. 2022‐1.    Packet Pg. 319   City of San Bernardino   Community Facilities District No. 2022‐1 (Highland/Medical)  Page 9    “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  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.      Packet Pg. 320   City of San Bernardino   Community Facilities District No. 2022‐1 (Highland/Medical)  Page 10  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  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    Packet Pg. 321   City of San Bernardino   Community Facilities District No. 2022‐1 (Highland/Medical)  Page 11  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.    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 non‐delinquent 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    Packet Pg. 322   City of San Bernardino   Community Facilities District No. 2022‐1 (Highland/Medical)  Page 12  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  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  2064‐2065 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. 2022‐1 Bonds have been paid; (ii) all  authorized facilities of CFD No. 2022‐1 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. 2022‐ 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. 2022‐1 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    Packet Pg. 323   City of San Bernardino   Community Facilities District No. 2022‐1 (Highland/Medical)  Page 13  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.          Packet Pg. 324 APPENDIX B Boundary Map   Packet Pg. 325 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;326 APPENDIX C Resolution of Intention   Packet Pg. 327 Resolution No. 2022-141 Resolution No. 2022-141 July 20, 2022 Page 1 of 20 RESOLUTION NO. 2022-141 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DECLARING INTENTION TO ESTABLISH PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2022-1 (HIGHLAND/MEDICAL) OF THE CITY OF SAN BERNARDINO WHEREAS, the City Council (the “City Council”) of the City of San Bernardino (the “City”) has received a written petition from the owner of certain real property (the “Owner”) within the City of San Bernardino (the “City”) requesting that the City Council initiate proceedings for the formation of a community facilities district, pursuant to Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the “Mello-Roos Community Facilities Act of 1982,” (the “Act”) for the purpose of financing the public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and WHEREAS, the Owner is the owner of all of the property which is proposed to be included within the proposed community facilities district; and WHEREAS, the Act provides that the City Council may initiate proceedings to establish a community facilities district only if it has first considered and adopted local goals and policies concerning the use of community facilities districts; and WHEREAS, the City Council has been presented with its Local Goals and Policies for all Community Facilities Districts of the City of San Bernardino (the “Policies”) for consideration, and the proposed public facilities comply with the Policies; and WHEREAS, pursuant to Section 53320 of the Act, having received such a petition, the City Council is required to institute proceedings for the formation of the proposed community facilities district by the adoption of a resolution of intention pursuant to Section 53321 of the Act. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Findings. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Proposed Community Facilities District. A community facilities district is proposed to be established under the provisions of the Act. The name proposed for the community facilities district is “Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino, County of San Bernardino, State of California” herein referred to as CFD No. 2022-1.   Packet Pg. 328 Resolution No. 2022-141 Resolution No. 2022-141 July 20, 2022 Page 2 of 20 SECTION 3. Description and Map of Boundaries. The boundaries of the proposed CFD No. 2022-1 are described and shown on the map entitled “Proposed Boundary Map Community Facilities District No. 2022-1 (Highland/Medical) City of San Bernardino, County of San Bernardino, State of California,” which is on file with the City Clerk. Said map is approved and, pursuant to Section 3110 of the California Streets and Highways Code, the City Clerk shall, after conforming with the other requirements of Section 3111 of said Code, record the original of said map in her office, and not later than fifteen (15) days prior to the date of the public hearing set forth in Section 10 hereof shall file a copy of said map with the County Recorder of the County of San Bernardino. SECTION 4. Types of Facilities; Incidental Expenses. The types of public facilities to be financed by the proposed CFD No. 2022-1, which may be provided by the construction or acquisition thereof or the financing of impact fees to be used for the construction or acquisition thereof (herein, the “Facilities”) include but are not limited to: (a) Acquisition, design, construction of local and regional circulation systems, storm drain improvements, parkland 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 CFD No. 2022-1, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the proposed CFD No. 2022-1, and (iii) any other expenses incidental to the construction, completion, and inspection of the public Facilities (the “Incidental Expenses”). SECTION 5. Special Taxes. Except where funds are otherwise available, a special tax sufficient to finance the Facilities and related Incidental Expenses secured by the recordation of a continuing lien against all taxable or nonexempt property in CFD No. 2022-1, shall be annually levied within CFD No. 2022-1. Under no circumstances will Special Taxes levied in any fiscal year against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within CFD No. 2022-1 by more than 10 percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. A parcel shall be considered “used for private residential purposes” not later than the date on which an occupancy permit or the equivalent for private residential use is issued 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. 2022-1 reference is made to the attached and incorporated Exhibit A (the “Rate and Method”) which sets forth in sufficient detail the rate and   Packet Pg. 329 Resolution No. 2022-141 Resolution No. 2022-141 July 20, 2022 Page 3 of 20 method of apportionment of the Special Taxes to allow each landowner or resident within CFD No. 2022-1 to clearly estimate the maximum amount that such person will have to pay. The conditions under which the obligation to pay Special Taxes may be prepaid and permanently satisfied are as set forth in the Rate and Method. Pursuant to Section 53340 of the Act, said Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided however, that CFD No. 2022-1 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent assessor’s parcels as permitted by the Act. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the Special Taxes shall attach to all non-exempt real property in CFD No. 2022-1, and that lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien is canceled in accordance with law or until collection of the Special Taxes ceases. SECTION 6. Exempt Properties. Pursuant to Section 53340 of the Act, and except as provided in Section 53317.3 of the Act, properties of entities of the state, federal, and local governments shall be exempt from the levy of Special Taxes. SECTION 7. Necessity. The City Council finds that the Facilities described in Section 4 hereof are necessary to meet increased demands placed upon the City as a result of new development occurring within the boundaries of proposed CFD No. 2022-1. SECTION 8. Repayment of Funds Advanced or Work-in-Kind. Pursuant to Section 53314.9 of the Act, the City Council proposes to accept advances of funds or work-in-kind from private persons or private entities and to provide, by resolution, for the use of those funds or that work-in-kind for any authorized purpose, including but not limited to, paying any costs incurred by the City in creating proposed CFD No. 2022-1, and to enter into an agreement, by resolution, with the person or entity advancing the funds or work-in-kind to repay funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council. SECTION 9. Prohibition of Owner Contracts. Pursuant to Section 53329.5 of the Act, the City Council finds that the public interest will not be served by allowing the owners of property within proposed CFD No. 2022-1 to enter into a contract in accordance with subdivision (a) of that section, and that such owners shall not be permitted to elect to perform the work and enter into a written contract with the City for the construction for the Facilities pursuant to said Section 53329.5. SECTION 10. Hearing. A public hearing on the formation of proposed CFD No. 2022-1 shall be held at 7:00 p.m. on September 7, 2022 in the Bing Wong Auditorium of the Norman F.   Packet Pg. 330 Resolution No. 2022-141 Resolution No. 2022-141 July 20, 2022 Page 4 of 20 Feldheym Public Library located at 555 W. 6th Street, San Bernardino, California or via teleconference as directed by the City due to COVID-19 social distancing guidelines. SECTION 11. Notice of Hearing. The City Clerk shall publish a notice of the time and place of said hearing as required by Section 53322 of the Act, and may also give notice of the time and place of said hearing by first-class mail to each registered voter and to each landowner within CFD No. 2022-1 as prescribed by Section 53322.4 of said Code. Said notice shall be published at least seven (7) days and mailed at least fifteen (15) days before the date of the hearing, and shall contain the information required by said Section 53322. SECTION 12. Report. The officers of the City who will be responsible for providing the proposed Facilities to be provided within and financed by proposed CFD No. 2022-1, if it is established, shall study proposed CFD No. 2022-1, and, at or before the time of said hearing, file a report or reports with the City Council containing a brief description of the Facilities by type which will in their opinion be required to adequately meet the needs of proposed CFD No. 2022- 1 and their estimate of the fair and reasonable cost of providing the Facilities and the related Incidental Expenses to be incurred in connection therewith. All such reports shall be made a part of the record of the hearing to be held pursuant to Section 10 hereof. SECTION 13. Description of Voting Procedures. The voting procedures to be followed shall be pursuant to Section 53326 of the Act and pursuant to the applicable provisions of the California Election Code. SECTION 14. Approval of Policies. The Policies are hereby approved as presented to the City Council at this meeting. SECTION 15. CEQA. The City Council finds this Resolution is not subject to the California Environmental Quality Act (“CEQA”) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 16. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 17. Effective Date. This Resolution shall become effective immediately.   Packet Pg. 331 Resolution No. 2022-141 Resolution No. 2022-141 July 20, 2022 Page 5 of 20 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 20th day of July 2022. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia R. Carvalho, City Attorney /s/John Valdivia /s/Genoveva Rocha /s/Sonia Carvalho   Packet Pg. 332 Resolution No. 2022-141 Resolution No. 2022-141 July 20, 2022 Page 6 of 20 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2022-141, adopted at a regular meeting held on the 20th day of July 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ X _____ _______ _______ IBARRA X _____ _______ _______ FIGUEROA X _____ _______ _______ SHORETT X _____ _______ _______ REYNOSO X _____ _______ _______ CALVIN X _____ _______ _______ ALEXANDER X _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this 21st day of July 2022. Genoveva Rocha, CMC, City Clerk /s/Genoveva Rocha   Packet Pg. 333 A-1 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR COMMUNITY FACILITIES DISTRICT NO. 2022-1 (HIGHLAND/MEDICAL) 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. 2022-1 (Highland/Medical) of the City of San Bernardino ("CFD No. 2022-1"). 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. 2022-1 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: “Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel as a Single Family Residential Property with a stand-alone Residential Unit. "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 actual or reasonably estimated costs related to the administration of CFD No. 2022-1, levy on the Special Tax therein and payment of debt service on the outstanding Bonds, including but not limited to, 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 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. 2022-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022-1 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2022-1 and any major property owner associated with applicable federal and state securities laws and the Act; litigation related to or arising out of CFD No. 2022-1; legal costs; compliance with continuing disclosure undertakings, the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs   Packet Pg. 334 A-2 of the City, CFD No. 2022-1 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. 2022-1 for any other administrative purposes of CFD No. 2022-1, 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 May 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. 2022-1 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.   Packet Pg. 335 A-3 "CFD” or “CFD No. 2022-1" means Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino established by the City under the Act. “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. “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. 2022-1, or its designee. “Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 6624 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 May 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 6624 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. 2022-1 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.   Packet Pg. 336 A-4 "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 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. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA. “RMA" means this Rate and Method of Apportionment of Special Taxes. “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. 2022-1 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   Packet Pg. 337 A-5 construction of facilities authorized by CFD No. 2022-1 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. 2022-1, 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. "Welfare Exempt Property" means, in any Fiscal Year, all Assessor’s Parcels within the boundaries of CFD No. 2022-1 that have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code. B. SPECIAL TAX Commencing Fiscal Year 2022-2023 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 2022-2023, each Assessor’s Parcel within CFD No. 2022-1 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   Packet Pg. 338 A-6 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 2022-2023 shall be determined pursuant to Table 1 below. TABLE 1 ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY FISCAL YEAR 2022-2023 Land Use Category Taxable Unit Building Square Footage Assigned Special Tax Per Taxable Unit 1. Single Family Residential Property RU Less than 1,800 sq. ft $2,790 2. Single Family Residential Property RU 1,800 sq. ft to 2,000 sq. ft $3,080 3. Single Family Residential Property RU Greater than 2,000 sq. ft $3,209 4. Multifamily Property Acre N/A $49,620 5. Non-Residential Property Acre N/A $49,620   Packet Pg. 339 A-7 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 net taxable 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 $49,620 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 $49,620 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.   Packet Pg. 340 A-8 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 $49,620 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 $49,620 per Acre. E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing Fiscal Year 2022-2023 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 for which an occupancy permit for a private residential use has been issued 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.   Packet Pg. 341 A-9 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 6.46 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 6.46 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 6.46 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E. Welfare Exempt Property shall be exempt from the payment of the Special Tax so long as the property qualifies as a Welfare Exempt Property. G. PREPAYMENT OF SPECIAL TAX The following additional definitions apply to this Section G: “CFD Public Facilities” means $4,000,000 expressed in 2022 dollars, which shall increase by the Construction Inflation Index on July 1, 2023, 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. 2022-1, 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. 2022-1. “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.   Packet Pg. 342 A-10 “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. 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.   Packet Pg. 343 A-11 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 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”).   Packet Pg. 344 A-12 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. 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 non-delinquent 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.   Packet Pg. 345 A-13 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 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 2064- 2065 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. 2022-1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2022-1 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. 2022-1 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. 2022-1 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.   Packet Pg. 346 A-14 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.   Packet Pg. 347   Packet Pg. 348 APPENDIX D Amended Resolution of Intention   Packet Pg. 349 Resolution No. 2022-186 Resolution No. 2022-186 August 17, 2022 Page 1 of 3 RESOLUTION NO. 2022-186 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING AND SUPPLEMENTING THE RESOLUTION DECLARING INTENTION TO ESTABLISH PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2022-1 (HIGHLAND/MEDICAL) OF THE CITY OF SAN BERNARDINO WHEREAS, on July 20, 2022, the City Council (the “City Council”) of the City of San Bernardino (the “City”), 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,” adopted Resolution No. 2022-141 entitled “Resolution of the Mayor and City Council of the City of San Bernardino, California, Declaring Intention to Establish Proposed Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino” (the “Resolution of Intention”), stating its intention to establish the proposed Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino, County of San Bernardino, State of California (the “CFD No. 2022-1”) for the purpose of financing the public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and WHEREAS, the Resolution of Intention set the date of the public hearing on the formation of proposed CFD No. 2022-1 on September 7, 2022 at 7:00 p.m. in the Bing Wong Auditorium of the Norman F. Feldheym Public Library located at 555 W. 6th Street, San Bernardino, California or via teleconference as directed by the City due to COVID-19 social distancing guidelines; and WHEREAS, the City Council has cancelled the September 7, 2022 meeting and therefore desires to amend the date of the public hearing to October 5, 2022. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Findings. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Public Hearing. Section 10 of Resolution No. 2022-141 shall be deleted in its entirety and replaced by the following: SECTION 10. Hearing. A public hearing on the formation of proposed CFD No. 2022-1 shall be held at 7:00 p.m. on October 5, 2022, in the Bing Wong Auditorium of the Norman F. Feldheym Public Library located at 555 W. 6th Street, San Bernardino, California or via teleconference as directed by the City due to COVID-19 social distancing guidelines.   Packet Pg. 350 Resolution No. 2022-186 Resolution No. 2022-186 August 17, 2022 Page 2 of 3 SECTION 3. Amendment. This Resolution amends and supplements the Resolution of Intention and said resolution, as amended hereby, remains fully effective as therein specified SECTION 4. 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 17th day of August, 2022. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia R. Carvalho, City Attorney   Packet Pg. 351 Resolution No. 2022-186 Resolution No. 2022-186 August 17, 2022 Page 3 of 3 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2022-186, adopted at a regular meeting held on the 17th day of August, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ X _____ _______ _______ IBARRA X _____ _______ _______ FIGUEROA X _____ _______ _______ SHORETT X _____ _______ _______ REYNOSO X _____ _______ _______ CALVIN X _____ _______ _______ ALEXANDER X _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this 18th day of August, 2022. ______________________________ Genoveva Rocha, CMC, City Clerk   Packet Pg. 352   Packet Pg. 353 FUNDING AND ACQUISITION AGREEMENT Relating to CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2022-1 (HIGHLAND/MEDICAL) Between THE CITY OF SAN BERNARDINO and WARMINGTON RESIDENTIAL CALIFORNIA, INC., a California corporation ______________ 1, 2022   Packet Pg. 354 1 FUNDING AND ACQUISITION AGREEMENT COMMUNITY FACILITIES DISTRICT NO. 2022-1 (HIGHLAND/MEDICAL) OF THE CITY OF SAN BERNARDINO This FUNDING AND ACQUISITION AGREEMENT (the “Agreement”) is entered into the ______ day of _____________, 2022 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 WARMINGTON RESIDENTIAL CALIFORNIA, a California corporation (“Developer”). R E C I T A L S A. PI Properties, LLC has purchased that certain real property located on approximately 10.10 gross acres of land within Tract Map No. 20494 including 95 residential lots, (the “Property”) located in the City, commonly known as “Highland/Medical.” 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 acquisition of certain local and regional circulation systems, storm drains, and parkland and open space, and sewer and water improvements (the “Acquisition Facilities”), and 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 Developer for the payment of certain fees to the City. The Acquisition Facilities and Public Facilities are generally described in Exhibit A attached hereto, which Acquisition Facilities and Public Facilities are necessary to the development of the Property. Said community facilities district shall be known as the “Community Facilities District No. 2022-1 (Highland/Medical) 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 the 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 governing 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 acquisition of the Acquisition Facilities, and the design, planning, engineering, financing, installation, and construction of the Public Facilities and expenses incidental thereto.   Packet Pg. 355 2 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. 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 acquisition of the Acquisition Facilities, and 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 Acquisition Facilities and 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 Developer, and subject to Developer 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. Developer 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 Developer 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 Developer, or Developer’s designee, shall be reimbursed from the proceeds of Bonds subsequently issued even if such Bonds must be issued on a taxable basis.   Packet Pg. 356 3 Immediately upon the City receiving proceeds of the Bonds in accordance with this Agreement, the City shall return to Developer, or Developer’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 Developer. Section 3. Sale of Bonds. Upon Developer’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 and the Acquisition 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 Developer. 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 Developer. Developer 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 Developer Deposit Agreement, between the City and Developer (the “Deposit Agreement”), Developer shall pay and advance all of the costs reasonably associated with the establishment of the District. Developer 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 Developer 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 or encumbered deposited amounts. If the Special Taxes are levied and collected, the City may   Packet Pg. 357 4 reimburse Developer 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 Developer 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. 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 Developer during regular business hours. The sole source of funds for reimbursement of any advance expenditure made by the City or Developer shall be the uncommitted and unexpended payments made by Developer 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 income 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   Packet Pg. 358 5 (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 Developer to City pursuant to the Deposit Agreement, then to fund the Acquisition Facilities and/or 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 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 Developer, 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 Developer 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 Acquisition Facilities (including any costs incurred by the City for processing Payment Requests) and/or 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 Developer.   Packet Pg. 359 6 Section 7. Construction of Acquisition Facilities. The Acquisition Facilities for which Developer seeks reimbursement under this Agreement shall be constructed and completed by Developer, as determined by the City pursuant to Section 53313.5 of the Act. Payment of the Purchase Price of the Acquisition Facilities shall be in the manner described in Section 8 hereof. Section 8. Acquisition and Payment of Acquisition Facilities. (a) Inspection. City agrees that the Acquisition Facilities are eligible for payment, provided that the timing and amount of such payment shall be determined by the City pursuant to this Section 8 of this Agreement. No payment hereunder shall be made by the City to Developer for an Acquisition Facility until such Acquisition Facility has been inspected by the City or other applicable public entity or utility and found to be substantially completed in accordance with the approved Plans. An Acquisition Facility shall be considered “substantially complete” when it has been reasonably determined by the City or other applicable public entity to be usable, subject to final completion of such items as the final lift or any other items not essential to the primary use or operation of the Acquisition Facility. For Acquisition Facilities to be acquired by the City, Developer shall request inspection using applicable City procedures. For Acquisition Facilities to be acquired by other public entities or utilities, Developer shall be responsible for obtaining such inspections and providing written evidence thereof to the City Engineer. Developer agrees to pay all inspection, permit and other similar fees of the City applicable to construction of the Acquisition Facilities, which fees are subject to reimbursement under this Agreement. (b) Agreement to Sell and Purchase Acquisition Facilities. Developer hereby agrees to sell the Acquisition Facilities to the City and the City hereby agrees to use amounts available pursuant to the terms of this Agreement to pay the Purchase Price, as defined below, thereof to Developer, subject to the terms and conditions hereof. The City shall not be obligated to pay the Purchase Price for the Acquisition Facilities except from the proceeds of the Bonds and proceeds of the Special Tax as provided herein. (c) Purchase Price. The Purchase Price for an Acquisition Facility shall be equal to the Actual Cost of such Acquisition Facility, as approved in accordance with the procedure set forth in subsection (e) below but subject to the limitations of this Section 8. (d) Payment Requests. In order to receive the Purchase Price for an Acquisition Facility, Developer shall deliver to the City Manager or his designee a Payment Request in the form of Exhibit C hereto, together with all attachments and exhibits required by this Section 8(d) to be included therewith. If the property on which the Acquisition Facility is located is not owned by the City at the time of the request, Developer shall provide a copy of the recorded documents conveying to the City Acceptable Title to the real property on, in or over which such Acquisition Facility is located, as described in Section 9(a) hereof. (e) Processing Payment Requests. Upon receipt of a Payment Request (and all accompanying documents), the City Manager or his designee shall conduct a review in order to confirm that such request is complete and to verify and approve the Actual Cost of the Acquisition Facility. The City Manager or his designee shall also conduct such review as is required in his/her discretion to confirm the matters certified in the Payment Request. Developer   Packet Pg. 360 7 agrees to cooperate with the City Manager or his designee in conducting each such review and to provide the City Manager or his designee with such additional information and documentation as is reasonably necessary for the City Manager or his designee to conclude each such review. Within 20 business days of receipt of the Payment Request, the City Manager or his designee expects to review the request for completeness and notify Developer whether such Payment Request is complete, and, if not, what additional documentation must be provided. If such Payment Request is complete, the City Manager or his designee expects to provide a written approval or denial (specifying the reason for any denial) of the request within 30 days of its submittal. (f) Payment. Upon approval of the Payment Request by the City Manager or his designee, the City Manager or his designee shall sign the Payment Request and forward the same to the Finance Director of the City. Upon receipt of the reviewed and fully signed Payment Request, the Finance Director of the City shall, within the then current City financial accounting payment cycle but in any event within fifteen (15) business days of receipt of the approved Payment Request, cause the same to be paid by the Fiscal Agent under the applicable provisions of the Fiscal Agent Agreement, to the extent of funds then on deposit in the appropriate account. The Purchase Price paid hereunder for the Acquisition Facilities shall constitute payment in full for the Acquisition Facilities, including, without limitation, payment for all labor, materials, equipment, tools and services used or incorporated in the work, supervision, administration, overhead, expenses and any and all other things required, furnished or incurred for completion of the Acquisition Facilities. (g) Timing of Requisitions. The City and Developer acknowledge that (i) Developer may submit a Payment Request for an Acquisition Facility to the City in advance of when sufficient, if any, funds are available for payment of the Purchase Price; (ii) the Payment Request submitted when there are insufficient proceeds available will be reviewed by the City as set forth in this Agreement and, if appropriate, approved for payment when such funds are available and (iii) the payment approved in the preceding manner will be deferred until the date, if any, on which there are proceeds of Special Taxes or Bonds available to make all or part of such payment, at which time the city will pay from the Special Fund or direct the Fiscal Agent to wire transfer (or pay in another mutually acceptable manner) from Bond proceeds the funds available to the payee identified in such Payment Request. (h) Restrictions on Payments. Notwithstanding any other provisions of this Agreement, the following restrictions shall apply to any payments made to Developer under Sections 8(b) and 8(f) hereof: (1) Amounts of Payments. Subject to the following paragraphs of this Section 8(h), payments for the Acquisition Facilities will be made only in the amount of the Purchase Price for the Acquisition Facilities. Nothing herein shall require the City in any event (i) to pay more than the Actual Cost of the Acquisition Facilities, or (ii) to make any payment beyond the available funds in the Special Fund or the applicable accounts identified in the Fiscal Agent Agreement. The parties hereto acknowledge and agree that all payments to Developer for the Purchase Price of   Packet Pg. 361 8 the Acquisition Facilities are intended to be reimbursements to Developer for monies already expended or for immediate payment by Developer (or directly by the City) to third parties in respect of the Acquisition Facilities. (2) Joint or Third Party Payments. The City may make any payment jointly to Developer and any mortgagee or trust deed beneficiary, contractor or supplier of materials, as their interests may appear, or solely to any such third party, if Developer so requests the same in writing or as the City otherwise determines such joint or third party payment is necessary to obtain lien releases. (3) Withholding Payments. The City shall be entitled, but shall not be required, to withhold any payment hereunder for the Acquisition Facilities if the Owner or any Affiliate is delinquent in the payment of ad valorem real property taxes, special assessments or taxes, or Special Taxes levied in the District. In the event of any such delinquency, the City shall only make payments hereunder directly to contractors or other third parties employed in connection with the construction of the Acquisition Facilities or to any assignee of Developer’s interests in this Agreement (and not to Developer or any Affiliate), until such time as Developer provides the City Manager with evidence that all such delinquent taxes and assessments have been paid. The City shall withhold final payment for an Acquisition Facility constructed on land until Acceptable Title to such land is conveyed to the City, as described in Section 9 hereof. Nothing in this Agreement shall be deemed to prohibit Developer from contesting in good faith the validity or amount of any mechanics or materialman’s lien nor limit the remedies available to Developer with respect thereto so long as such delay in performance shall not subject the Acquisition Facility to foreclosure, forfeiture or sale. In the event that any such lien is contested, Developer shall only be required to post or cause the delivery of a bond in an amount equal to the amount in dispute with respect to any such contested lien, so long as such bond is drawn on an obligor and is otherwise in a form acceptable to the City Manager or his designee. Nothing in this Section 8(h) shall prevent payments pursuant to Section 6. (i) Modification of Acquisition Facilities and Public Facilities. The descriptions of the Acquisition Facilities and Public Facilities in Exhibit A may be modified, or new Acquisition Facilities and Public Facilities may be added to Exhibit A, through a Supplement executed by the City Manager and Developer provided the modifications or new Acquisition Facilities and Public Facilities are consistent with the facilities and costs authorized to be funded by the District pursuant to the formation proceedings and the Act. Section 9. Ownership and Transfer of Acquisition Facilities. (a) Conveyance of Land and Easements to City. Acceptable Title to all property on, in or over which the Acquisition Facilities will be located, shall be deeded over to the City by way of grant deed, quitclaim, or dedication of such property, or easement thereon, if such conveyance of interest is approved by the City as being a sufficient interest therein to   Packet Pg. 362 9 permit the City to properly own, operate and maintain the Acquisition Facilities located therein, thereon or thereover, and to permit Developer to perform its obligations as set forth in this Agreement. Developer agrees to assist the City in obtaining such documents as are required to obtain Acceptable Title. Completion of the transfer of title to land shall be accomplished prior to the payment of the Purchase Price for an Acquisition Facility and shall be evidenced by an irrevocable offer of dedication or recordation of the acceptance thereof by the City Council. (b) Facilities to be Owned by the City – Title Evidence. Upon the request of the City, Developer shall furnish to the City a preliminary title report for land with respect to the Acquisition Facilities that have not previously been dedicated or otherwise conveyed to the City, for review and approval at least fifteen (15) calendar days prior to the transfer of Acceptable Title of the Acquisition Facilities to the City. The City shall approve the preliminary title report unless it reveals a matter which, in the judgment of the City, could materially affect the City’s use and enjoyment of any part of the property or easement covered by the preliminary title report. In the event the City does not approve the preliminary title report, the City shall not be obligated to accept title to such Acquisition Facility or pay the Purchase Price for the Acquisition Facility until Developer has cured such objections to title to the satisfaction of the City. (c) Facilities Constructed on Private Lands. If any portion of an Acquisition Facility is located on privately-owned land, the owner thereof shall retain title to the land and the completed Acquisition Facility until the Acquisition Facility is accepted by City and transferred to City pursuant to this Section 9. Pending the completion of such transfer, Developer shall not be entitled to receive any payment for the Acquisition Facility. Developer shall, however, be entitled to receive payments pursuant to Section 8 of the Acquisition Facility upon making an irrevocable offer of dedication of such land in form and substance acceptable to the City Manager. (d) Facilities Constructed on City Land. If any portion of an Acquisition Facility to be acquired is on land owned by the City, the City hereby grants to Developer a license to enter upon such land for purposes related to the construction (and maintenance pending acquisition) of the Acquisition Facility. The provisions for inspection and acceptance of the Acquisition Facilities otherwise provided herein shall apply. Section 10. Indemnification. Developer 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 arising out of Developer’s performance of, or failure to perform, its duties hereunder or by reason of, or arising out of, this Agreement. Section 11. 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 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 12. Representations, Covenants and Warranties of Developer. Developer represents and warrants for the benefit of the City as follows:   Packet Pg. 363 10 A. Organization. Developer is duly organized, validly existing and in good standing under the laws of the State of California, is duly qualified to conduct business as a corporation and is in good standing under the laws of the State of California and has the corporate power and corporate authority to own its properties and assets and to carry on its business as now being conducted and as now contemplated. B. Authority. Developer has the corporate power and corporate authority to enter into this Agreement, and has taken all action necessary to cause this Agreement to be executed and delivered by Developer, and this Agreement has been duly and validly executed and delivered by Developer. C. Binding Obligation. This Agreement is a legal, valid and binding obligation of Developer, enforceable against Developer in accordance with its terms, subject to bankruptcy and other equitable principles. D. Compliance with Laws. Developer 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 or the Acquisition Facilities. E. Requests for Payment. Developer represents and warrants that (i) it will not request payment from the City out of the Special Taxes or proceeds of the Bonds for the acquisition of any improvements other than the Acquisition Facilities, and (ii) it will diligently follow all procedures set forth in this Agreement with respect to the Payment Request for the Acquisition Facilities. F. Additional Information. Developer 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. G. Continuing Disclosure. Developer 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. Developer 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. Developer 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 Developer owns property within the District responsible for more than 20% of the Special Taxes levied in such fiscal year, then Developer 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 Developer 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   Packet Pg. 364 11 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 Developer’s certified public accountant which are available to the investing public (which may be consolidated with Developer’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 Developer, 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. Developer 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. The Developer shall notify the Owner who owns 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 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 13. Independent Contractor. Developer 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 Developer. The City shall have no responsibility or liability for the payment of any amount to any employee or subcontractor of Developer. Section 14. 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 Acquisition Facilities and 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 Acquisition Facilities and Public Facilities. Developer 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 Developer and City intend to create for the purpose of providing an assured source of funding for construction, acquisition and/or equipping of the Acquisition Facilities and 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. Section 15. Disclosure of Special Taxes. (a) From and after the date of this Agreement, Developer 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. Developer shall (i) maintain records of each Notice of Special Tax for a period of five (5) years, and (ii) shall provide copies of each notice to City promptly following the giving of such notice. Developer shall include the Notice of Special Tax in all Developer’s applications for Final   Packet Pg. 365 12 Subdivision Reports required by the Department of Real Estate (“DRE”) which are filed after the effective date of this Agreement. Developer 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 Taxes 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. Developer 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. Developer 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. Developer intends to comply with this requirement by providing prospective homebuyers who request such additional written information, with the sample property tax bill in the Master Property Disclosure Report, a copy of which has presented to and approved by the City. Section 16. Termination and Dissolution. Prior to the issuance of Bonds, Developer 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. Developer 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 Developer pays all City fees or posts separate security therefore. Such termination of this Agreement and cancellation of Special Taxes shall have no effect on Developer’s obligations to pay City Fees upon issuance of a building permit.   Packet Pg. 366 13 Section 17. 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 18. 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 Developer unless terminated in writing pursuant to Section 16. Section 19. Prompt Action. All consents, approvals and determinations required of either the City or Developer pursuant to this Agreement shall be promptly given or made, and shall not be unreasonably withheld or conditioned. Section 20. 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 or the design and acquisition or construction of the Acquisition Facilities, 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]   Packet Pg. 367 S-1 IN WITNESS WHEREOF, the parties have caused this agreement to be signed as of the date first above written. Dated:WARMINGTON RESIDENTIAL CALIFORNIA, INC., a California corporation By: ________________________________ _________________________ Authorized Agent Dated:CITY OF SAN BERNARDINO By: ________________________________ Robert D. Field City Manager ATTEST: By: City Clerk APPROVED AS TO FORM: By: Bond Counsel -Signature Page- Funding and Acquisition Agreement   Packet Pg. 368 A-1 EXHIBIT A DESCRIPTION OF PUBLIC FACILITIES The immediately following table lists the Acquisition Facilities to be constructed by Developer, including the current cost estimates related thereto, which are subject to change. A. Acquisition Facilities Estimated Local Circulation Improvements $22,129.00 Regional Circulation Improvements 231,325.00 Storm Drainage Improvements 372,961.00 Parkland and Open Space Improvements 904,197.00 Sewer Capacity 332,500.00 Sewer Connection (3 Bedroom)35,280.00 Sewer Connection (4 Bedroom)112,560.00 Water Connection (3/4” Meter)884,517.00 GRAND TOTAL ELIGIBLE ACQUISITION FACILITIES $2,895,469.00   Packet Pg. 369 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 subject 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 will 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. “Acceptance Date” means the date the City Council takes final action to accept dedication of or transfer of title to the Acquisition Facilities. “Acquisition Facilities” means the facilities described as such in Exhibit A to the Agreement. “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 Developer, any other Person who control, is controlled by or is under common control with the Developer, for purposes hereof, control means the power to exercise a controlling influence over the management or policies of a person, unless such power 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. “Actual Cost” means the substantiated cost of the Acquisition Facilities, which costs may include: (i) the costs incurred by the Developer for the construction of the Acquisition Facilities, including labor, material and equipment costs; (ii) the costs incurred by the Developer in preparing the Plans for the Acquisition Facilities and the related costs of environmental evaluations of the Acquisition Facilities; (iii) the fees paid to governmental agencies for obtaining permits, licenses or other governmental approvals for the Acquisition Facilities; (iv) a construction and project management fee of five percent (5%) of the costs described in clause (i) above incurred for the construction of the Acquisition Facilities; (v) professional costs incurred   Packet Pg. 370 B-2 by the Developer or the City associated with the Acquisition Facilities, such as engineering, legal, accounting, inspection, construction staking, materials testing and similar professional services; (vi) costs directly related to the construction and/or acquisition of the Acquisition Facilities, such as costs of payment, performance and/or maintenance bonds, and insurance costs (including costs of any title insurance required hereunder); and (vii) costs of any real property or interest therein acquired from a third party, which real property or interest therein is either necessary for the construction of such Acquisition Facility (e.g., temporary construction easements, haul roads, etc.) or is required to be conveyed with such Acquisition Facility in order to convey Acceptable Title thereto to the City. Actual Cost shall not include any cost of carry or interest expense with respect to any construction loan obtained by the Developer with respect to the Acquisition Facilities. “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; local and regional circulation system, storm drain, parkland and open space, sewer capacity, and water and sewer connection. “Deposit Agreement” means the Deposit Agreement between the City and the Developer. “District Representative” means the City Manager of the City, or his or her designee. “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 PI PROPERTIES, LLC, a California limited liability company, as the owner of the Property, and its successors and assigns, other than individual homebuyers.   Packet Pg. 371 B-3 “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. “Plans” means the plans, specifications, schedules and related construction contracts for the Acquisition Facilities approved pursuant to the applicable standards of the City or other entity that will own, operate or maintain the Acquisition Facilities when completed and acquired. “Purchase Price” means the amount paid by the City for the Acquisition Facilities determined in accordance with Section 8 hereof, being an amount equal to the Actual Cost of such Acquisition Facilities, but subject to the limitations and reductions provided for in Section 8. “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.   Packet Pg. 372 C-1 EXHIBIT C FORM OF PAYMENT REQUEST City of San Bernardino Community Facilities District No. 2022-1 (Highland/Medical) The undersigned, ______________________, a duly authorized representative of Developer, hereby requests payment of the Purchase Price of the Acquisition Facilities described in Attachment A attached hereto. Capitalized undefined terms shall have the meanings ascribed thereto in the Funding and Acquisition Agreement, dated as of ___________ 1, 2022 (the “Agreement”), by and between the City of San Bernardino (“City”) for the City of San Bernardino Community Facilities District No. 2022-1 (Highland/Medical) (the “CFD”), and WARMINGTON RESIDENTIAL CALIFORNIA, INC., a California corporation (“Developer”). In connection with this Payment Request, the undersigned hereby represents and warrants to the CFD and the City as follows: 1. He (she) is a duly authorized representative of Developer, qualified to execute this request for payment on behalf of Developer and knowledgeable as to the matters set forth herein. 2. The Acquisition Facilities for which payment is being sought under this payment request have been substantially completed in accordance with the Agreement. 3. The true and correct Actual Cost of the Acquisition Facilities is set forth in Attachment A. 4. Attached hereto are invoices, receipts, worksheets and other evidence of costs which are in sufficient detail to allow the City to verify the Actual Cost of the Acquisition Facilities. 5. There has not been filed with or served upon Developer notice of any lien, right to lien or attachment upon, or claim affecting the right to receive the payment requested herein which has not been released or will not be released simultaneously with the payment of such obligation, other than materialmen’s or mechanics’ liens accruing by operation of law. Copies of lien releases for all work for which payment is requested hereunder are attached hereto. 6. Developer is in compliance with the terms and provisions of the Agreement. The Purchase Price for the Acquisition Facilities shall be payable from the appropriate account created pursuant to the Fiscal Agent Agreement or the Special Fund established pursuant to the Agreement.   Packet Pg. 373 C-2 I hereby certify that the above representations and warranties are true and correct. Dated:WARMINGTON RESIDENTIAL CALIFORNIA, INC., a California corporation By: Name: Title: By execution of this Payment Request, the City does hereby approve of the payment as described in this Payment Request and directs the Fiscal Agent to pay such amounts, first, from bond proceeds held in the designated account pursuant to the Fiscal Agent Agreement and, second from any surplus Special Taxes held by the City as applicable, to the payee listed above and/or the City shall pay all or a portion thereof from funds designated by the City for such purpose. CITY OF SAN BERNARDINO for the City of San Bernardino Community Facilities District No. 2022-1 (Highland/Medical) By: Name: City Manager   Packet Pg. 374 C-3 ATTACHMENT A City Acquisition Facility Estimated Cost Actual Cost Purchase Price Total Purchase Price to be Paid $   Packet Pg. 375 D-1 EXHIBIT D CITY OF SAN BERNARDINO SPECIAL TAX INFORMATION SHEET Community Facilities District No. 2022-1 (Highland/Medical) 1.WHAT IS COMMUNITY FACILITIES DISTRICT (CFD) NO. 2022-1? CFD No. 2022-1 (Highland/Medical) 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. 2022-1 (Highland/Medical) 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. 2022-1 (Highland/Medical) for the 2022-23 fiscal year are summarized below. Land Use Category Taxable Unit Building Square Footage Assigned Special Tax Per Taxable Unit 1. Single Family Residential Property RU Less than 1,800 sq. ft $2,790 2. Single Family Residential Property RU 1,800 sq. ft to 2,000 sq. ft $3,080 3. Single Family Residential Property RU Greater than 2,000 sq. ft $3,209 4. Multifamily Property Acre N/A $49,620 5. Non-Residential Property Acre N/A $49,620 4.HOW LONG WILL I HAVE TO PAY THE CFD NO. 2022-1 SPECIAL TAX? Special Taxes will not be collected after fiscal year 2064-2065. 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. 2022-1 (Highland/Medical) 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. 2022-1, contact the City of San Bernardino’s CFD No. 2022-1 (Highland/Medical) administrator, Spicer Consulting Group, LLC, 41619 Margarita Road, Suite 101, Murrieta, CA 92591, phone (866-504-2067).   Packet Pg. 376 7 8 7 PUBLIC HEARING City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager; Barbara Whitehorn, Agency Director of Administrative Services Department:Finance Subject:Public Hearing on Proceedings to Form Proposed Community Facilities District No. 2022-2 (Palm) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1) Adopt Resolution No. 2022-212 of the Mayor and City Council of the City of San Bernardino, California, Establishing Community Facilities District No. 2022-2 (Palm) of the City of San Bernardino, County of San Bernardino, State of California, and the boundaries thereof and approving a Funding Agreement; 2) Adopt Resolution No. 2022-213 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. 2022-2 (Palm), 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; 3) Adopt Resolution No. 2022-214 of the Mayor and City Council of the City of San Bernardino, California Calling a Special Election and Submitting to the Voters of   Packet Pg. 377 7 8 7 Community Facilities District No. 2022-2 (Palm) 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 Therefore; 4) Adopt Resolution No. 2022-215 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. 2022-2 (Palm); and 5) Introduce, read by title only and waive further reading of Ordinance No. MC-1598 of the Mayor and City Council of the City of San Bernardino, California, Acting as the Legislative Body of Community Facilities District No. 2022-2 (Palm), Authorizing the Levy of Special Taxes in such Community Facilities District. Background The City has received petitions from Pacific West Company, the owner of APN Nos. 0285-211-21-0000, 0285-211-23-0000, and 0285-211-22-0000, and Hanhsing Li, Chenmei Cheng, and Ann C. Lau (the “Owners”), the owners of APN Nos. 0285-211- 05-0000 and 0285-211-25-0000 (the “Property”) requesting the formation of the proposed community facilities district (the “CFD”), encompassing the Property, to finance: (a) Acquisition, design, construction of local and regional circulation systems, storm drain improvements, and parkland and open space (the “Facilities”); and (b) The incidental expenses proposed to be incurred are: (i) the cost of planning and designing the public facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the proposed CFD No. 2022-2, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the proposed CFD No. 2022-2, and (iii) any other expenses incidental to the construction, completion, and inspection of the public Facilities. On July 20, 2022, this City Council approved Resolution Nos. 2022-143 and 2022-144, 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 September 7, 2022. Due to cancellation of the September 7, 2022, meeting, on August 17, 2022, this City Council approved Resolution Nos. 2022-177 and 2022-178 to amend the date of the public hearing to October 5, 2022.   Packet Pg. 378 7 8 7 Discussion On October 5, 2022, this 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 approves the form of Funding Agreement which sets forth the terms and conditions under which the City will acquire improvements constructed by the developer, Warmington Residential California, Inc. (the “Developer”). The purpose of the Funding 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 Facilities and expenses incidental thereto. The Resolution Determining 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 October 5, 2022, 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 Owners have consented to hold the election on October 5, 2022. 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 City Council may adopt the Resolution Declaring Results of the Election 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 Ordinance Levying Special Taxes, which authorizes the levy of special taxes within the CFD. 2021-2025 Strategic Targets and Goals This project is consistent with Key Target No. 1. Improved Operational & Financial Capacity and Key Target No. 4: Economic Growth & Development. This project will contribute to ensure that the City is clean and attractive and provide infrastructure   Packet Pg. 379 7 8 7 designed for long-term economic growth. Fiscal Impact There is no fiscal impact to the City as the costs for formation of the CFD is paid through a deposit provided by the Developer, and on-going administrative costs are paid through the levy of special taxes within the CFD. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1) Adopt Resolution No. 2022-212 of the Mayor and City Council of the City of San Bernardino, California, Establishing Community Facilities District No. 2022-2 (Palm) of the City of San Bernardino, County of San Bernardino, State of California, and the boundaries thereof and approving a Funding Agreement; 2) Adopt Resolution No. 2022-213 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. 2022-2 (Palm), 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; 3) Adopt Resolution No. 2022-214 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. 2022-2 (Palm) 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 Therefore; 4) Adopt Resolution No. 2022-215 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. 2022-2 (Palm); and 5) Introduce, read by title only and waive further reading of Ordinance No.MC-1598 of the Mayor and City Council of the City of San Bernardino, California, Acting as the Legislative Body of Community Facilities District No. 2022-2 (Palm), Authorizing the Levy of Special Taxes in such Community Facilities District. Attachments   Packet Pg. 380 7 8 7 Attachment 1 RES 2022-212 Resolution of Formation Attachment 2 RES 2022-213 Resolution Determining Necessity to Incur a Bonded Indebtedness Attachment 3 RES 2022-214 Resolution Calling a Special Election Attachment 4 RES 2022-215Resolution Declaring the Results of the Consolidated Special Elections Attachment 5 MC -1598 Ordinance Authorizing the Levy of Special Taxes Attachment 6 CFD Report Attachment 7 Funding Agreement Ward: Fourth Ward Synopsis of Previous Council Actions: On July 20, 2022, the Mayor and City Council adopted Resolution No. 2022-143, Declaring Intention to Form Community Facilities District No. 2022-2 (Palm), and Resolution No. 2022-144, Declaring Necessity for Community Facilities District No. 2022-2 (Palm) to Incur a Bonded Indebtedness. On August 17, 2022, the Mayor and City Council adopted Resolution No. 2022-177, Amending and Supplementing the Resolution Declaring Intention, and Resolution No. 2022-178, Amending and Supplementing the Resolution Declaring Necessity, to amend the date of the public hearings called by both resolutions to October 5, 2022.   Packet Pg. 381 Resolution No. 2022-212 RESOLUTION NO. 2022-212 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2022-2 (PALM) OF THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AND THE BOUNDARIES THEREOF AND APPROVING A FUNDING AGREEMENT WHEREAS, on July 20, 2022, the City Council (the “City Council”) of the City of San Bernardino (the “City”) adopted the Resolution of Intention (the “Resolution of Intention) stating that a community facilities district to be known as “Community Facilities District No. 2022-2 (Palm) of the City of San Bernardino, County of San Bernardino, State of California” (“CFD No. 2022-2”), 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. 2022-2 for September 7, 2022; and WHEREAS, on August 17, 2022, the City Council adopted a Resolution Amending and Supplementing the Resolution of Intention to amend the date of the public hearing on the proposed formation of CFD No. 2022-1 from September 7, 2022 to October 5, 2022; and WHEREAS, CFD No. 2022-2 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. 2022-2 and the financing of the acquisition, design, construction of local and regional circulation systems, storm drain improvements, and parkland and open space, and it is proposed that CFD No. 2022-2 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 owners of all of the property in CFD No. 2022-2 relative to the intention of the City Council to establish CFD No. 2022-2, the levy of special taxes therein, the provision of public facilities therein and the incurring of a bonded indebtedness by CFD No. 2022-2 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. 2022-2, and Warmington Residential California, a California corporation; and WHEREAS, on October 5, 2022, the City Council conducted the public hearing as required by law relative to the formation of CFD No. 2022-2, the levy of special taxes therein, the provision of public facilities therein, and the incurring of a bonded indebtedness by CFD No. 2022- 2; 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   Packet Pg. 382 Resolution No. 2022-212 Resolution No. 2022-212 October 5, 2022 2 of 6 1 0 0 9 adequately meet the needs of CFD No. 2022-2, and an estimate of the fair and reasonable costs of providing such public facilities, as required by Section 53321.5 of the Act; and WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of CFD No. 2022-2, 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. 2022-2, 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. 2022-2; 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. 2022-2. 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 October 5, 2022, 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. 2022-2, and the incurring of bonded indebtedness by and for CFD No. 2022-2 and the annual levying of specified special taxes on the taxable property within CFD No. 2022-2 to pay principal of and interest on bonds to be issued by and for CFD No. 2022-2 to finance the Facilities and other obligations which are described in Section 3(a) hereof; (c) The boundary map of CFD No. 2022-2 was recorded on July 26, 2022, pursuant to Sections 3111 and 3113 of the California Streets and Highways Code, at page 43 in Book 90 of Maps of Assessment and Community Facilities Districts, and as Instrument No. 2022-0258074 in the official records of the County of San Bernardino; (d) All prior proceedings with respect to the formation of CFD No. 2022-2 prior to and during the public hearing with respect to the formation of CFD No. 2022-2 which was conducted by the City Council on October 5, 2022, 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. 2022-2, or the levying of the special taxes, or the incurring of a bonded indebtedness by CFD No. 2022-2, 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;   Packet Pg. 383 Resolution No. 2022-212 Resolution No. 2022-212 October 5, 2022 3 of 6 1 0 0 9 (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. 2022-2 (Palm) of the City of San Bernardino, County of San Bernardino, State of California, and CFD No. 2022-2 should be established; and (g) Twelve (12) persons have not been registered to vote within the territory of CFD No. 2022-2 for each of the 90 days preceding the close of the public hearing on October 5, 2022, 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. 2022-2 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. 2022-2 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. 2022-2 (Palm) of the City of San Bernardino, County of San Bernardino, State of California, is hereby established. The boundaries of CFD No. 2022-2 are set forth and shown on the map entitled “Proposed Boundary Map - Community Facilities District No. 2022-2 (Palm) 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. 2022-2 (the “Facilities”) include but are not limited to: (a) Acquisition, design, construction of local and regional circulation systems, storm drain improvements, and parkland and open space; and (b) The incidental expenses proposed to be incurred are: (i) the cost of planning and designing the public facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the proposed CFD No. 2022-2, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the proposed CFD No. 2022-2, 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. 2022- 2, shall be annually levied within CFD No. 2022-2. 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. 2022-2 by more than 10 percent (10%) above the amount that would have been levied in that fiscal year had there never been any such   Packet Pg. 384 Resolution No. 2022-212 Resolution No. 2022-212 October 5, 2022 4 of 6 1 0 0 9 delinquencies or defaults. A parcel shall be considered “used for private residential purposes” not later than the date on which an occupancy permit or the equivalent for private residential use is issued for such parcel. For further particulars as to the rate and method of apportionment of the Special Taxes to be levied on parcels of taxable property in CFD No. 2022-2 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. 2022-2 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 ordinary ad valorem property taxes; provided however, that CFD No. 2022-2 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent assessor’s parcels as permitted by the Act. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the Special Taxes shall attach to all non-exempt real property in CFD No. 2022-2, 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. 2022-2, 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. 2022-2, 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 by allowing the owners of property within CFD No. 2022-2 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.   Packet Pg. 385 Resolution No. 2022-212 Resolution No. 2022-212 October 5, 2022 5 of 6 1 0 0 9 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 City 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. 2022-2 incurring a bonded indebtedness, (ii) the proposition with respect to the levy of special taxes on parcels of taxable property within CFD No. 2022-2 to pay the principal of and interest on the bonds of CFD No. 2022-2, and (iii) the proposition with respect to establishing an appropriations limit for CFD No. 2022-2 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. 2022-2 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. 2022-2 the propositions with respect to (i) CFD No. 2022-2 incurring a bonded indebtedness, (ii) the levy of special taxes to pay the principal of and interest on the bonds of CFD No. 2022-2, 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. 2022-2 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. 2022-2 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   Packet Pg. 386 Resolution No. 2022-212 Resolution No. 2022-212 October 5, 2022 6 of 6 1 0 0 9 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. 2022-2. (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 necessary 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 resolution is   Packet Pg. 387 Resolution No. 2022-212 Resolution No. 2022-212 October 5, 2022 7 of 6 1 0 0 9 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. SECTION 11. CEQA. The City Council finds this Resolution is not subject to the California Environmental Quality Act (“CEQA”) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 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 5th day of October, 2022. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, City Clerk Attest: Sonia R. Carvalho, City Attorney   Packet Pg. 388 Resolution No. 2022-212 -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. 2022-212, adopted at a regular meeting held on the 5th day of October, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2022. ______________________________ Genoveva Rocha, City Clerk   Packet Pg. 389 Resolution No. 2022-212 A-1 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR COMMUNITY FACILITIES DISTRICT NO. 2022-2 (PALM) 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. 2022-2 (Palm) of the City of San Bernardino ("CFD No. 2022-2"). 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. 2022-2 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: “Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel as a Single Family Residential Property with a stand-alone Residential Unit. "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 actual or reasonably estimated costs related to the administration of CFD No. 2022-2, levy on the Special Tax therein and payment of debt service on the outstanding Bonds, including but not limited to, 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 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. 2022-2 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022-2 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2022-2 and any major property owner associated with applicable federal and state securities laws and the Act; litigation related to or arising out of CFD No. 2022-2; legal costs; compliance with continuing disclosure undertakings, the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs   Packet Pg. 390 A-2 of the City, CFD No. 2022-2 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. 2022-2 for any other administrative purposes of CFD No. 2022-2, 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 May 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. 2022-2 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.   Packet Pg. 391 A-3 "CFD” or “CFD No. 2022-2" means Community Facilities District No. 2022-2 (Palm) of the City of San Bernardino established by the City under the Act. “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. “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. 2022-2, or its designee. “Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 6624 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 May 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 6624 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. 2022-2 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.   Packet Pg. 392 A-4 "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 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. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA. “RMA" means this Rate and Method of Apportionment of Special Taxes. “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. 2022-2 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   Packet Pg. 393 A-5 construction of facilities authorized by CFD No. 2022-2 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. 2022-2, 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. "Welfare Exempt Property" means, in any Fiscal Year, all Assessor’s Parcels within the boundaries of CFD No. 2022-1 that have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code. B. SPECIAL TAX Commencing Fiscal Year 2022-2023 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 2022-2023, each Assessor’s Parcel within CFD No. 2022-2 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   Packet Pg. 394 A-6 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 2022-2023 shall be determined pursuant to Table 1 below. TABLE 1 ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY FISCAL YEAR 2022-2023 Land Use Category Taxable Unit Building Square Footage Assigned Special Tax Per Taxable Unit 1. Single Family Residential Property RU Less than 1,800 sq. ft $1,552 2. Single Family Residential Property RU 1,800 sq. ft to 1,950 sq. ft $1,595 3. Single Family Residential Property RU 1,951 sq. ft to 2,100 sq. ft $1,637 4. Single Family Residential Property RU 2,101 sq. ft to 2,250 sq. ft $1,764 5. Single Family Residential Property RU 2,251 sq. ft to 2,400 sq. ft $1,806 6. Single Family Residential Property RU Greater than 2,400 sq. ft $1,849 7. Multifamily Property Acre N/A $27,459 8. Non-Residential Property Acre N/A $27,459   Packet Pg. 395 A-7 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 net taxable 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 $27,459 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 $27,459 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.   Packet Pg. 396 A-8 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 $27,459 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 $27,459 per Acre. E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing Fiscal Year 2022-2023 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 for which an occupancy permit for a private residential use has been issued 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.   Packet Pg. 397 A-9 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 9.11 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 9.11 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 9.11 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E. Welfare Exempt Property shall be exempt from the payment of the Special Tax so long as the property qualifies as a Welfare Exempt Property. G. PREPAYMENT OF SPECIAL TAX The following additional definitions apply to this Section G: “CFD Public Facilities” means $3,000,000 expressed in 2022 dollars, which shall increase by the Construction Inflation Index on July 1, 2023, 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. 2022-2, 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. 2022-2. “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.   Packet Pg. 398 A-10 “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. 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   Packet Pg. 399 A-11 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 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   Packet Pg. 400 A-12 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. 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 non-delinquent 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:   Packet Pg. 401 A-13 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 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 2064- 2065 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. 2022-2 Bonds have been paid; (ii) all authorized facilities of CFD No. 2022-2 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. 2022-2 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. 2022-2 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.   Packet Pg. 402 A-14 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.   Packet Pg. 403 Resolution No. 2022-213 Resolution No. 2022-213 October 5, 2022 1 of 6 1 0 0 9 RESOLUTION NO. 2022-213 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. 2022-2 (PALM), 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 July 20, 2022, 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. 2022-144 declaring the necessity for Community Facilities District No. 2022-2 (Palm) of the City of San Bernardino, County of San Bernardino, State of California (“CFD No. 2022-2”), to incur a bonded indebtedness for the purpose of providing and financing the acquisition, design, construction of local and regional circulation systems, storm drain improvements, and parkland and open space (the “Facilities”), which are necessary to meet increased demands placed upon the City as a result of development which will occur within CFD No. 2022-2, and calling a public hearing on the proposed indebtedness for September 7, 2022; and WHEREAS, on August 17, 2022, the City Council adopted a Resolution Amending and Supplementing the Resolution Declaring Necessity to amend the date of the public hearing on the proposed indebtedness for CFD No. 2022-2 from September 7, 2022 to October 5, 2022; and WHEREAS, notice was published and mailed to the owners of all of the property in CFD No. 2022-2 relative to the intention of the City Council to establish CFD No. 2022-2, to incur a bonded indebtedness for CFD No. 2022-2, the levy of special taxes therein, the provision of public facilities therein, and of the time and place of the public hearing; and WHEREAS, on October 5, 2022, 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. 2022-2, an opportunity to be heard on the proposed authorization to incur bonded indebtedness, and no protests were received; and   Packet Pg. 404 Resolution No. 2022-213 Resolution No. 2022-213 October 5, 2022 2 of 6 1 0 8 6 1 0 0 9 WHEREAS, on October 5, 2022, 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. 2022-2; 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. 2022-2; and WHEREAS, the City Council has determined that it is necessary that a bonded indebtedness for CFD No. 2022-2 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. 2022-2, being the landowners of CFD No. 2022-2, 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. 2022-2 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. 2022-2 will pay for the bonded indebtedness. SECTION 4. Bond Authorization. The amount of the bonded indebtedness of CFD No. 2022-2 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. 2022-2 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, inspection, legal, fiscal and financial consultant fees, bond and other reserve funds and interest on any bonds of CFD No. 2022-2 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.   Packet Pg. 405 Resolution No. 2022-213 Resolution No. 2022-213 October 5, 2022 3 of 6 1 0 8 6 1 0 0 9 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 exclusively from the annual levy of the special tax within CFD No. 2022-2, 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. 2022-2 with respect to the proposed bonded indebtedness shall be as follows: PROPOSITION B: Shall Community Facilities District No. 2022-2 (Palm) 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 October 5, 2022? SECTION 8. Election. The date of the special election with respect to the incurring of the aforementioned bonded indebtedness for CFD No. 2022-2, at which time the proposition set forth in Section 5 hereof shall be submitted to the appropriate qualified voters of CFD No. 2022- 2 is October 5, 2022, 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. 2022-2, the vote in the special election will be by the landowners of CFD No. 2022-2 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. 2022-2, 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. 2022-2 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. 2022-2 which has also been called for October 5, 2022. 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 with 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.   Packet Pg. 406 Resolution No. 2022-213 Resolution No. 2022-213 October 5, 2022 4 of 6 1 0 8 6 1 0 0 9 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. 2022-2 incurring bonded indebtedness for the purposes for which such indebtedness by CFD No. 2022-2, is to be incurred and bonds of CFD No. 2022-2 are to be issued (the “Bond Proposition”), the incurring of such bonded indebtedness and the issuance of bonds of CFD No. 2022-2 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. 2022-2 will incur bonded indebtedness and issue bonds. SECTION 10. CEQA. The City Council finds this Resolution is not subject to the California Environmental Quality Act (“CEQA”) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 11. 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 12. Effective Date. This Resolution shall become effective immediately.   Packet Pg. 407 Resolution No. 2022-213 Resolution No. 2022-213 October 5, 2022 5 of 6 1 0 8 6 1 0 0 9 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 5th day of October, 2022. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, City Clerk Attest: Sonia R. Carvalho, City Attorney   Packet Pg. 408 Resolution No. 2022-213 Resolution No. 2022-213 October 5, 2022 6 of 6 1 0 0 9 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. 2022-213 adopted at a regular meeting held on the 5th day of October, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2022. ______________________________ Genoveva Rocha, City Clerk   Packet Pg. 409 Resolution No. 2022-214 RESOLUTION NO. 2022-214 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. 2022-2 (PALM) 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. 2022-2 (Palm) of the City of San Bernardino, County of San Bernardino, State of California (“CFD No. 2022-2”), 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. 2022-2 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. 2022-2 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. 2022-2 the proposition relating to the annual levy of special taxes on taxable property within CFD No. 2022-2 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. 2022-2 a proposition with respect to establishing an appropriations limit for CFD No. 2022-2; 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. 2022-2. 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. 2022-2 for each of the 90 days preceding the close of the public hearing on October 5, 2022; (iii) pursuant to Section 53326 of the California Government Code, as a result of the findings set forth in clause   Packet Pg. 410 Resolution No. 2022-214 2 1 0 8 7 (ii) above, the vote in the special election called by this resolution shall be by the landowners of CFD No. 2022-2 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. 2022-2 which would be subject to the proposed special taxes if they were levied at the time of the election; (iv) the owners of all of the property in CFD No. 2022-2 have 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 and the election on the proposition of CFD No. 2022-2 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 October 5, 2022, (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 October 5, 2022. SECTION 2. Call of Election. The City Council hereby calls and schedules special elections for October 5, 2022, within and for CFD No. 2022-2 on (i) the proposition with respect to the annual levy of special taxes on taxable property within CFD No. 2022-2 for the payment of principal of and interest on the bonds of CFD No. 2022-2, 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. 2022-2. SECTION 3. Propositions. The propositions to be submitted to the voters of CFD No. 2022-2 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. 2022-2 (Palm) 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 October 5, 2022 (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 October 5, 2022 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?   Packet Pg. 411 Resolution No. 2022-214 3 1 0 8 7 SECTION 4. Consolidation of Elections. The special election called hereby on the propositions to be submitted to the voters of CFD No. 2022-2, as set forth in Section 3 hereof, shall be consolidated with the special election on the proposition of CFD No. 2022-2 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. 2022-2 incurring a bonded indebtedness, (ii) the proposition with respect to the levy of special taxes on taxable property within CFD No. 2022-2 to pay the principal of and interest on the bonds of CFD No. 2022-2, and (iii) the proposition with respect to establishing an appropriations limit for CFD No. 2022-2 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 October 5, 2022. (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 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. 2022-2.   Packet Pg. 412 Resolution No. 2022-214 4 1 0 8 7 (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. 2022-2 incurring bonded indebtedness for the purposes for which such indebtedness is to be incurred (the “Bond Proposition”) and bonds of CFD No. 2022-2 are to be issued, the incurring of such bonded indebtedness and the issuance of bonds of CFD No. 2022-2 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 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. 2022-2 will incur bonded indebtedness and issue bonds. SECTION 8. CEQA. The City Council finds this Resolution is not subject to the California Environmental Quality Act (“CEQA”) in that the activity is covered by the general rule   Packet Pg. 413 Resolution No. 2022-214 5 1 0 8 7 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 9. 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 10. 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 5th day of October, 2022. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, City Clerk Attest: Sonia R. Carvalho, City Attorney   Packet Pg. 414 Resolution No. 2022-214 6 1 0 8 7 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. 2022-214, adopted at a regular meeting held on the 5th day of October, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2022. ______________________________ Genoveva Rocha, City Clerk   Packet Pg. 415 Resolution No. 2022-____ A-1 EXHIBIT A OFFICIAL BALLOT CONSOLIDATED SPECIAL ELECTIONS FOR COMMUNITY FACILITIES DISTRICT NO. 2022-2 (PALM) OF THE CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO STATE OF CALIFORNIA October 5, 2022 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. 2022-2 (Palm) of the City of San Bernardino, County of San Bernardino, State of California, 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. 2022-2 (Palm) 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 October 5, 2022 (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 October 5, 2022? YES NO PROPOSITION B: Shall Community Facilities District No. 2022-2 (Palm) of the City of San Bernardino, County of San Bernardino, State of California, 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 October 5, 2022? YES NO   Packet Pg. 416 Resolution No. 2022-____ A-2 PROPOSITION C: Shall Community Facilities District No. 2022-2 (Palm) 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.   Packet Pg. 417 Resolution No. 2022-215 RESOLUTION NO. 2022-215 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. 2022-2 (PALM) WHEREAS, on October 5, 2022, 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. 2022-2 (Palm) of the City of San Bernardino, County of San Bernardino, State of California (the “CFD No. 2022-2”), to incur a bonded indebtedness for CFD No. 2022-2 for the purposes of providing certain public facilities and calling a special election for CFD No. 2022-2 on the proposition for incurring such bonded indebtedness for October 5, 2022, 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. 2022-2 to pay principal of and interest on such bonds, and (ii) establishing an appropriations limit for CFD No. 2022-2; and WHEREAS, on October 5, 2022, the City Council also adopted a resolution calling a special election for October 5, 2022, for submitting to the qualified electors of CFD No. 2022-2 the proposition with respect to the annual levy of special taxes on taxable property within CFD No. 2022-2 to pay the principal of and interest on the bonds thereof and the proposition with respect to establishing an appropriations limit for CFD No. 2022-2, and providing for the consolidation of that election with the election on the proposition of CFD No. 2022-2 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. 2022-2 and act as the election official therefor, with respect to the canvass of the ballots returned and the results of the consolidated special election, certifying that more than two-thirds of the votes cast upon the propositions submitted to the voters in the consolidated special election in CFD No. 2022-2 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. 2022-2 at the time of the close of the protest hearing on October 5, 2022, and pursuant to Section 53326 of the California Government Code (“Section 53326”) the vote in the consolidated special elections for CFD No. 2022-2 was, therefore, to be by the landowners owning land within CFD No. 2022-2, with each landowner having one vote for each acre or portion of an acre of land that he or she owned within CFD No. 2022-2 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 ballots for the consolidated special elections to Pacific West Company, Hanhsing Li, Chenmei Cheng, and Ann C. Lau, the owners of all of the taxable property included within the boundaries of CFD No. 2022-2 (the “Property Owners”) by mail or personal delivery; (iii) the Property Owners   Packet Pg. 418 Resolution No. 2022-215 2 1 0 8 8 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 October 5, 2022; (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, Pacific West Company, which owns approximately 6.599 acres in CFD No. 2022-2, was entitled to a total of 7 votes, Hanhsing Li, who owns approximately 3.412 acres in CFD No. 2022-2, was entitled to a total of 4 votes, Chenmei Cheng, who owns approximately 4.265 acres in CFD No. 2022-2, was entitled to a total of 5 votes, and Ann C. Lau, who owns approximately 0.853 acres in CFD No. 2022-2, was entitled to a total of 1 vote; (vi) the ballots were returned by the Property Owners to the City Clerk prior to the hour on the date of the election specified by the City Council for the return of the voted ballots; (vii) the ballots returned to the City Clerk by the Property Owners voted all votes to which they were 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. 2022-2, 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. 2022-2, is therefore authorized to take the necessary action to have CFD No. 2022-2 incur a bonded indebtedness in an amount not to exceed $4,000,000, to annually levy special taxes on taxable property within CFD No. 2022-2, in an amount sufficient to pay the principal of and interest on such bonds, and (x) an appropriations limit for CFD No. 2022-2 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. 2022-2 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. 2022-2 to pay the principal of and interest on the bonds of CFD No. 2022-2; and (iii) establishing an appropriations limit for CFD No. 2022-2 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. 2022-2 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. 2022-2, is authorized (i) to have CFD No. 2022-2 incur a bonded indebtedness in and for the purposes set forth in Proposition A of the Official Ballots for the consolidated special elections for CFD No. 2022-2; (ii) after CFD No. 2022-2 has incurred a bonded indebtedness and issued bonds therefor, to annually levy special taxes on taxable property within CFD No. 2022-2 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 October 5, 2022; and (iii) an appropriations limit has been established for CFD No. 2022-2 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. SECTION 5. CEQA. The City Council finds this Resolution is not subject to the California Environmental Quality Act (“CEQA”) in that the activity is covered by the general rule   Packet Pg. 419 Resolution No. 2022-215 3 1 0 8 8 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 5th day of October, 2022. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, City Clerk Attest: Sonia R. Carvalho, City Attorney   Packet Pg. 420 Resolution No. 2022-215 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. 2022-215, adopted at a regular meeting held on the 5th day of October, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2022. ______________________________ Genoveva Rocha, City Clerk   Packet Pg. 421 Ordinance MC-1598 ORDINANCE NO. MC-1598 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. 2022-2 (PALM), 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. 2022-2 (Palm) 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. 2022-2 (PALM), 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 the Special Tax (as defined in the Rate and Method) shall continue in force and effect until the special   Packet Pg. 422 Ordinance MC-1598 2 1 0 8 9 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 October 5, 2022. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 19th day of October, 2022. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, City Clerk Attest: Sonia R. Carvalho, City Attorney   Packet Pg. 423 Ordinance MC-1598 3 1 0 8 9 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-1598, which was regularly introduced at a regular meeting of the City Council of the City of San Bernardino duly held on the 5th day of October, 2022, and was adopted at a regular meeting of the City Council duly held on the 19th day of October, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2022. ______________________________ Genoveva Rocha, City Clerk   Packet Pg. 424 Ordinance MC-1598 A-1 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR COMMUNITY FACILITIES DISTRICT NO. 2022-2 (PALM) 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. 2022-2 (Palm) of the City of San Bernardino ("CFD No. 2022-2"). 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. 2022-2 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: “Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel as a Single Family Residential Property with a stand-alone Residential Unit. "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 actual or reasonably estimated costs related to the administration of CFD No. 2022-2, levy on the Special Tax therein and payment of debt service on the outstanding Bonds, including but not limited to, 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 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. 2022-2 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022-2 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2022-2 and any major property owner associated with applicable federal and state securities laws and the Act; litigation related to or arising out of CFD No. 2022-2; legal costs; compliance with continuing disclosure undertakings, the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs   Packet Pg. 425 A-2 of the City, CFD No. 2022-2 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. 2022-2 for any other administrative purposes of CFD No. 2022-2, 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 May 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. 2022-2 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.   Packet Pg. 426 A-3 "CFD” or “CFD No. 2022-2" means Community Facilities District No. 2022-2 (Palm) of the City of San Bernardino established by the City under the Act. “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. “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. 2022-2, or its designee. “Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 6624 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 May 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 6624 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. 2022-2 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.   Packet Pg. 427 A-4 "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 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. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA. “RMA" means this Rate and Method of Apportionment of Special Taxes. “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. 2022-2 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   Packet Pg. 428 A-5 construction of facilities authorized by CFD No. 2022-2 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. 2022-2, 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. "Welfare Exempt Property" means, in any Fiscal Year, all Assessor’s Parcels within the boundaries of CFD No. 2022-1 that have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code. B. SPECIAL TAX Commencing Fiscal Year 2022-2023 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 2022-2023, each Assessor’s Parcel within CFD No. 2022-2 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   Packet Pg. 429 A-6 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 2022-2023 shall be determined pursuant to Table 1 below. TABLE 1 ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY FISCAL YEAR 2022-2023 Land Use Category Taxable Unit Building Square Footage Assigned Special Tax Per Taxable Unit 1. Single Family Residential Property RU Less than 1,800 sq. ft $1,552 2. Single Family Residential Property RU 1,800 sq. ft to 1,950 sq. ft $1,595 3. Single Family Residential Property RU 1,951 sq. ft to 2,100 sq. ft $1,637 4. Single Family Residential Property RU 2,101 sq. ft to 2,250 sq. ft $1,764 5. Single Family Residential Property RU 2,251 sq. ft to 2,400 sq. ft $1,806 6. Single Family Residential Property RU Greater than 2,400 sq. ft $1,849 7. Multifamily Property Acre N/A $27,459 8. Non-Residential Property Acre N/A $27,459   Packet Pg. 430 A-7 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 net taxable 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 $27,459 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 $27,459 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.   Packet Pg. 431 A-8 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 $27,459 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 $27,459 per Acre. E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing Fiscal Year 2022-2023 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 for which an occupancy permit for a private residential use has been issued 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.   Packet Pg. 432 A-9 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 9.11 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 9.11 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 9.11 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E. Welfare Exempt Property shall be exempt from the payment of the Special Tax so long as the property qualifies as a Welfare Exempt Property. G. PREPAYMENT OF SPECIAL TAX The following additional definitions apply to this Section G: “CFD Public Facilities” means $3,000,000 expressed in 2022 dollars, which shall increase by the Construction Inflation Index on July 1, 2023, 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. 2022-2, 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. 2022-2. “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.   Packet Pg. 433 A-10 “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. 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   Packet Pg. 434 A-11 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 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   Packet Pg. 435 A-12 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. 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 non-delinquent 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:   Packet Pg. 436 A-13 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 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 2064- 2065 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. 2022-2 Bonds have been paid; (ii) all authorized facilities of CFD No. 2022-2 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. 2022-2 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. 2022-2 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.   Packet Pg. 437 A-14 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.   Packet Pg. 438 CITY OF SAN BERNARDINO Public Hearing Report CFD NO. 2022-2 (PALM) OCTOBER 5, 2022   Packet Pg. 439 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 D Amended Resolution of Intention _______________________________________         Packet Pg. 440 1 Introduction Page | 1  City of San Bernardino CFD No. 2022-2 (Palm) Public Hearing Report Background On July 20, 2022, the Mayor and City Council of the City of San Bernardino (the “City”), adopted a Resolution of Intention to form Community Facilities District No. 2022-2 (Palm) of the City of San Bernardino (the “CFD No. 2022-2” or “District”), Resolution No. 2022-143, 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”). On August 17, 2022 the City adopted a Resolution Amending and Supplementing the Resolution of Intention to amend the date of the public hearing on the proposed formation of CFD No. 2022-2 from September 7, 2022 to October 5, 2022. The CFD No. 2022-2 is currently comprised of Tract Map No. 20495 that includes one undeveloped parcel and approximately 15.51 gross acres. The proposed development includes 133 detached single family homes. The property is generally located at the northwest intersection of E Highland Ave. and N Palm Ave. For a map showing the boundaries of CFD No. 2022-2 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. 2022-2; 2. A brief description of the Facilities and Services required at the time of formation to meet the needs of CFD No. 2022-2. 3. A brief description of the Boundaries of CFD No. 2022-2; 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 and Resolution Amending the Resolution of Intention as previously approved and adopted and is included in Appendix C and Appendix D, respectively.   Packet Pg. 441 2 Description of Facilities Page | 2  City of San Bernardino CFD No. 2022-2 (Palm) 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. 2022-2 and financed with the proceeds of special taxes and bonds issued by CFD No. 2022-2 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. 2022-2, 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. 2022-2, including legal fees, fees of consultants, engineering, planning, designing and the annual costs to administer CFD No. 2022-2 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. 2022-2. Bond Authorization Amounts The maximum authorized bonded indebtedness is $4,000,000 for CFD No. 2022-2.   Packet Pg. 442 3 Cost Estimate Page | 3  City of San Bernardino CFD No. 2022-2 (Palm) 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. 2022- 2 Bonds is estimated to be $2,124,125 based upon current dollars (Fiscal Year 2022-23). b) The total facilities eligible to be funded by bond proceeds is $2,352,760, 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. 2022-2 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. 2022-2 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 $30,981 $30,981 Regional Circulation Fee $323,855 $323,855 Storm Drain Fee $522,146 $522,146 Storm Drain Fee (Credit) ($170,097) ($170,097) Parkland and Open Space Fee $1,265,875 $1,265,875 City Facilities $380,000 $151,365 Total City $2,352,760 $2,124,125 Total Eligible Fees/Improvements $2,352,760 $2,124,125 Incidental Financing Costs $555,875 Total Funded by Bond Proceeds $3,540,000 Total Fees/Improvements to be Funded by Developer $228,635 (1) Amounts are allocated based upon estimated bond sizing and may change abased upon market conditions at the time  of bond issuance.    Packet Pg. 443 4 Proposed Development Page | 4  City of San Bernardino CFD No. 2022-2 (Palm) Public Hearing Report The CFD No. 2022-2 includes approximately 15.51 gross acres on five undeveloped property within Tract 20495. The District is generally located at the northwest intersection of E Highland Ave. and N Palm Ave. As of Fiscal Year 2022-23 the proposed CFD No. 2022-2 includes the following Assessor's Parcel Numbers: Assessor’s Parcel Number 0285-211-05 0285-211-21 0285-211-22 0285-211-23 0285-211-25 A map showing the boundaries of CFD No. 2022-2 is included in Appendix B.   Packet Pg. 444 5 Rate and Method of Apportionment Page | 5  City of San Bernardino CFD No. 2022-2 (Palm) Public Hearing Report The Rate and Method of Apportionment allows each property owner within CFD No. 2022-2 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. 2022-2 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. 2022-2, unless exempted by law or by the Rate and Method proposed for CFD No. 2022-2, shall be taxed for the purpose of providing necessary facilities to serve the District. The Boundary Map for CFD No. 2022-2 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 $1,552 to $1,849 per Residential Unit for Single Family Residential Property and $27,459 per Acre for Multifamily Property for Fiscal Year 2022-2023. 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. 2022-2 for uncollected Special Taxes associated with the levy of such Special Taxes, but the Special Tax shall not be levied after 2064-2065 Fiscal Year. For particulars as to the Rate and Method for CFD No. 2022-2, see the attached and incorporated in Appendix A.   Packet Pg. 445 6 Certifications Page | 6  City of San Bernardino CFD No. 2022-2 (Palm) 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. 2022-2 and benefits the lands within said CFD No. 2022-2. 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: October 5, 2022 SPICER CONSULTING GROUP, LLC __________________________ SHANE SPICER SPECIAL TAX CONSULTANT FOR CITY OF SAN BERNARDINO SAN BERNARDINO COUNTY STATE OF CALIFORNIA   Packet Pg. 446 APPENDIX A Rate and Method of Apportionment   Packet Pg. 447   City of San Bernardino   Community Facilities District No. 2022‐2 (Palm)  Page 1  RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR  COMMUNITY FACILITIES DISTRICT NO. 2022‐2 (PALM)  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. 2022‐2 (Palm) of the City of San Bernardino ("CFD No. 2022‐2").  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. 2022‐2  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:    “Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that  shares an Assessor’s Parcel as a Single Family Residential Property with a stand‐alone Residential Unit.    "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 actual or reasonably estimated costs related to the administration  of CFD No. 2022‐2, levy on the Special Tax therein and payment of debt service on the outstanding Bonds,  including but not limited to,  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 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. 2022‐2 or any designee thereof of complying with arbitrage rebate  requirements; the costs to the City, CFD No. 2022‐2 or any designee thereof of complying with continuing  disclosure requirements of the City, CFD No. 2022‐2 and any major property owner associated with  applicable federal and state securities laws and the Act; litigation related to or arising out of CFD No. 2022‐ 2; legal costs; compliance with continuing disclosure undertakings, 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. 2022‐2 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. 2022‐2 for any other administrative purposes of CFD  No. 2022‐2, including attorney’s fees and other costs related to commencing and pursuing to completion  any foreclosure of delinquent Special Taxes.      Packet Pg. 448   City of San Bernardino   Community Facilities District No. 2022‐2 (Palm)  Page 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 May 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. 2022‐2 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” or “CFD No. 2022‐2" means Community Facilities District No. 2022‐2 (Palm) of the City of San  Bernardino established by the City under the Act.    “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.    “City” means the City of San Bernardino, State of California.      Packet Pg. 449   City of San Bernardino   Community Facilities District No. 2022‐2 (Palm)  Page 3  "City Council" means the City Council of the City of San Bernardino, acting as the Legislative Body of CFD  No. 2022‐2, or its designee.    “Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 6624 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 May 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 6624 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. 2022‐2 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    Packet Pg. 450   City of San Bernardino   Community Facilities District No. 2022‐2 (Palm)  Page 4  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.  An Accessory Dwelling Unit that shares  an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit  for purposes of this RMA.    “RMA" means this Rate and Method of Apportionment of Special Taxes.    “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.  2022‐2 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. 2022‐2  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. 2022‐2, 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.    Packet Pg. 451   City of San Bernardino   Community Facilities District No. 2022‐2 (Palm)  Page 5  "Welfare Exempt Property" means, in any Fiscal Year, all Assessor’s Parcels within the boundaries of CFD  No. 2022‐1 that have been granted a welfare exemption by the County under subdivision (g) of Section  214 of the Revenue and Taxation Code.    B. SPECIAL TAX     Commencing Fiscal Year 2022‐2023 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 2022‐2023, each Assessor’s Parcel within CFD No. 2022‐2 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).    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.            Packet Pg. 452   City of San Bernardino   Community Facilities District No. 2022‐2 (Palm)  Page 6  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 2022‐2023 shall be determined  pursuant to Table 1 below.    TABLE 1  ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY  FISCAL YEAR 2022‐2023    Land Use Category  Taxable  Unit Building Square Footage  Assigned  Special Tax Per  Taxable Unit  1.  Single Family Residential Property RU Less than 1,800 sq. ft $1,552  2. Single Family Residential Property RU 1,800 sq. ft to 1,950 sq. ft $1,595  3. Single Family Residential Property RU 1,951 sq. ft to 2,100 sq. ft $1,637  4. Single Family Residential Property RU 2,101 sq. ft to 2,250 sq. ft $1,764  5. Single Family Residential Property RU 2,251 sq. ft to 2,400 sq. ft $1,806  6. Single Family Residential Property RU Greater than 2,400 sq. ft $1,849  7. Multifamily Property Acre N/A $27,459  8. Non‐Residential Property Acre N/A $27,459    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 net taxable 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.      Packet Pg. 453   City of San Bernardino   Community Facilities District No. 2022‐2 (Palm)  Page 7  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 $27,459 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 $27,459 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 $27,459 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 $27,459 per Acre.    E.  METHOD OF APPORTIONMENT OF THE SPECIAL TAX    Commencing Fiscal Year 2022‐2023 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    Packet Pg. 454   City of San Bernardino   Community Facilities District No. 2022‐2 (Palm)  Page 8  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 for which an occupancy permit for a private residential use  has been issued 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 9.11 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 9.11 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 9.11 Acres will be classified as Provisional Undeveloped Property, and  will be subject to Special Tax pursuant to Step Five in Section E.    Welfare Exempt Property shall be exempt from the payment of the Special Tax so long as the property  qualifies as a Welfare Exempt Property.    G. PREPAYMENT OF SPECIAL TAX    The following additional definitions apply to this Section G:    “CFD Public Facilities” means $3,000,000 expressed in 2022 dollars, which shall increase by the  Construction Inflation Index on July 1, 2023, 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. 2022‐2, 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.      Packet Pg. 455   City of San Bernardino   Community Facilities District No. 2022‐2 (Palm)  Page 9  “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. 2022‐2.    “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  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:    Packet Pg. 456   City of San Bernardino   Community Facilities District No. 2022‐2 (Palm)  Page 10  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  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”).      Packet Pg. 457   City of San Bernardino   Community Facilities District No. 2022‐2 (Palm)  Page 11  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.    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 non‐delinquent 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    Packet Pg. 458   City of San Bernardino   Community Facilities District No. 2022‐2 (Palm)  Page 12  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  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  2064‐2065 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. 2022‐2 Bonds have been paid; (ii) all  authorized facilities of CFD No. 2022‐2 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. 2022‐ 2 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. 2022‐2 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    Packet Pg. 459   City of San Bernardino   Community Facilities District No. 2022‐2 (Palm)  Page 13  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.        Packet Pg. 460 APPENDIX B Boundary Map   Packet Pg. 461 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;462 APPENDIX C Resolution of Intention   Packet Pg. 463 Resolution No. 2022-143 Resolution No. 2022-143 July 20, 2022 Page 1 of 3 RESOLUTION NO. 2022-143 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DECLARING INTENTION TO ESTABLISH PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2022-2 (PALM) OF THE CITY OF SAN BERNARDINO WHEREAS, the City Council (the “City Council”) of the City of San Bernardino (the “City”) has received a written petition from the owners of certain real property (the “Owner’) within the City of San Bernardino (the “City”) requesting that the City Council initiate proceedings for the formation of a community facilities district, pursuant to Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the “Mello-Roos Community Facilities Act of 1982,” (the “Act”) for the purpose of financing the public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and WHEREAS, the Owners are the owners of all of the property which is proposed to be included within the proposed community facilities district; and WHEREAS, the Act provides that the City Council may initiate proceedings to establish a community facilities district only if it has first considered and adopted local goals and policies concerning the use of community facilities districts; and WHEREAS, the City Council has been presented with its Local Goals and Policies for all Community Facilities Districts of the City of San Bernardino (the “Policies”) for consideration, and the proposed public facilities comply with the Policies; and WHEREAS, pursuant to Section 53320 of the Act, having received such a petition, the City Council is required to institute proceedings for the formation of the proposed community facilities district by the adoption of a resolution of intention pursuant to Section 53321 of the Act. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Findings. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Proposed Community Facilities District. A community facilities district is proposed to be established under the provisions of the Act. The name proposed for the community facilities district is “Community Facilities District No. 2022-2 (Palm) of the City of San Bernardino, County of San Bernardino, State of California” herein referred to as CFD No. 2022- 2. SECTION 3. Description and Map of Boundaries. The boundaries of the proposed CFD No. 2022-2 are described and shown on the map entitled “Proposed Boundary Map Community   Packet Pg. 464 Resolution No. 2022-143 Resolution No. 2022-143 July 20, 2022 Page 2 of 6 Facilities District No. 2022-2 (Palm) City of San Bernardino, County of San Bernardino, State of California,” which is on file with the City Clerk. Said map is approved and, pursuant to Section 3110 of the California Streets and Highways Code, the City Clerk shall, after conforming with the other requirements of Section 3111 of said Code, record the original of said map in her office, and not later than fifteen (15) days prior to the date of the public hearing set forth in Section 10 hereof shall file a copy of said map with the County Recorder of the County of San Bernardino. SECTION 4. Types of Facilities; Incidental Expenses. The types of public facilities to be financed by the proposed CFD No. 2022-2, which may be provided by the construction or acquisition thereof or the financing of impact fees to be used for the construction or acquisition thereof (herein, the “Facilities”) include but are not limited to: (a) Acquisition, design, construction of local and regional circulation systems, storm drain improvements, and parkland and open space; and (b) The incidental expenses proposed to be incurred are: (i) the cost of planning and designing the public facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the proposed CFD No. 2022-2, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the proposed CFD No. 2022-2, and (iii) any other expenses incidental to the construction, completion, and inspection of the public Facilities (the “Incidental Expenses”). SECTION 5. Special Taxes. Except where funds are otherwise available, a special tax sufficient to finance the Facilities and related Incidental Expenses secured by the recordation of a continuing lien against all taxable or nonexempt property in CFD No. 2022-2, shall be annually levied within CFD No. 2022-2. Under no circumstances will Special Taxes levied in any fiscal year against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within CFD No. 2022-2 by more than 10 percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. A parcel shall be considered “used for private residential purposes” not later than the date on which an occupancy permit or the equivalent for private residential use is issued 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. 2022-2 reference is made to the attached and incorporated Exhibit A (the “Rate and Method”) which sets forth in sufficient detail the rate and method of apportionment of the Special Taxes to allow each landowner or resident within CFD No. 2022-2 to clearly estimate the maximum amount that such person will have to pay. The conditions under which the obligation to pay Special Taxes may be prepaid and permanently satisfied are as set forth in the Rate and Method.   Packet Pg. 465 Resolution No. 2022-143 Resolution No. 2022-143 July 20, 2022 Page 3 of 6 Pursuant to Section 53340 of the Act, said Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided however, that CFD No. 2022-2 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent assessor’s parcels as permitted by the Act. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the Special Taxes shall attach to all non-exempt real property in CFD No. 2022-2, and that lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien is canceled in accordance with law or until collection of the Special Taxes ceases. SECTION 6. Exempt Properties. Pursuant to Section 53340 of the Act, and except as provided in Section 53317.3 of the Act, properties of entities of the state, federal, and local governments shall be exempt from the levy of Special Taxes. SECTION 7. Necessity. The City Council finds that the Facilities described in Section 4 hereof are necessary to meet increased demands placed upon the City as a result of new development occurring within the boundaries of proposed CFD No. 2022-2. SECTION 8. Repayment of Funds Advanced or Work-in-Kind. Pursuant to Section 53314.9 of the Act, the City Council proposes to accept advances of funds or work-in-kind from private persons or private entities and to provide, by resolution, for the use of those funds or that work-in-kind for any authorized purpose, including but not limited to, paying any costs incurred by the City in creating proposed CFD No. 2022-2, and to enter into an agreement, by resolution, with the person or entity advancing the funds or work-in-kind to repay funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council. SECTION 9. Prohibition of Owner Contracts. Pursuant to Section 53329.5 of the Act, the City Council finds that the public interest will not be served by allowing the owners of property within proposed CFD No. 2022-2 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. SECTION 10. Hearing. A public hearing on the formation of proposed CFD No. 2022-2 shall be held at 7:00 p.m. on September 7, 2022 in the Bing Wong Auditorium of the Norman F. Feldheym Public Library located at 555 W. 6th Street, San Bernardino, California or via teleconference as directed by the City due to COVID-19 social distancing guidelines. SECTION 11. Notice of Hearing. The City Clerk shall publish a notice of the time and place of said hearing as required by Section 53322 of the Act, and may also give notice of the time and place of said hearing by first-class mail to each registered voter and to each landowner within CFD No. 2022-2 as prescribed by Section 53322.4 of said Code. Said notice shall be published at least seven (7) days and mailed at least fifteen (15) days before the date of the hearing, and shall contain the information required by said Section 53322.   Packet Pg. 466 Resolution No. 2022-143 Resolution No. 2022-143 July 20, 2022 Page 4 of 6 SECTION 12. Report. The officers of the City who will be responsible for providing the proposed Facilities to be provided within and financed by proposed CFD No. 2022-2, if it is established, shall study proposed CFD No. 2022-2, and, at or before the time of said hearing, file a report or reports with the City Council containing a brief description of the Facilities by type which will in their opinion be required to adequately meet the needs of proposed CFD No. 2022- 2 and their estimate of the fair and reasonable cost of providing the Facilities and the related Incidental Expenses to be incurred in connection therewith. All such reports shall be made a part of the record of the hearing to be held pursuant to Section 10 hereof. SECTION 13. Description of Voting Procedures. The voting procedures to be followed shall be pursuant to Section 53326 of the Act and pursuant to the applicable provisions of the California Election Code. SECTION 14. Approval of Policies. The Policies are hereby approved as presented to the City Council at this meeting. SECTION 15. CEQA. The City Council finds this Resolution is not subject to the California Environmental Quality Act (“CEQA”) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 16. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 17. 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 20th day of July 2022. John Valdivia, Mayor City of San Bernardino /s/John Valdivia   Packet Pg. 467 Resolution No. 2022-143 Resolution No. 2022-143 July 20, 2022 Page 5 of 6 Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia R. Carvalho, City Attorney /s/Genoveva Rocha /s/Sonia Carvalho   Packet Pg. 468 Resolution No. 2022-143 Resolution No. 2022-143 July 20, 2022 Page 6 of 6 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2022-143, adopted at a regular meeting held on the 20th day of July 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ X _____ _______ _______ IBARRA X _____ _______ _______ FIGUEROA X _____ _______ _______ SHORETT X _____ _______ _______ REYNOSO X _____ _______ _______ CALVIN X _____ _______ _______ ALEXANDER X _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this 21st day of July 2022. ______________________________ Genoveva Rocha, CMC, City Clerk /s/Genoveva Rocha   Packet Pg. 469 Resolution No. 2022-143 A-1 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR COMMUNITY FACILITIES DISTRICT NO. 2022-2 (PALM) 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. 2022-2 (Palm) of the City of San Bernardino ("CFD No. 2022-2"). 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. 2022-2 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: “Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel as a Single Family Residential Property with a stand-alone Residential Unit. "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 actual or reasonably estimated costs related to the administration of CFD No. 2022-2, levy on the Special Tax therein and payment of debt service on the outstanding Bonds, including but not limited to, 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 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. 2022-2 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022-2 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2022-2 and any major property owner associated with applicable federal and state securities laws and the Act; litigation related to or arising out of CFD No. 2022-2; legal costs; compliance with continuing disclosure undertakings, the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs   Packet Pg. 470 A-2 of the City, CFD No. 2022-2 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. 2022-2 for any other administrative purposes of CFD No. 2022-2, 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 May 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. 2022-2 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.   Packet Pg. 471 A-3 "CFD” or “CFD No. 2022-2" means Community Facilities District No. 2022-2 (Palm) of the City of San Bernardino established by the City under the Act. “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. “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. 2022-2, or its designee. “Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 6624 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 May 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 6624 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. 2022-2 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.   Packet Pg. 472 A-4 "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 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. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA. “RMA" means this Rate and Method of Apportionment of Special Taxes. “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. 2022-2 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   Packet Pg. 473 A-5 construction of facilities authorized by CFD No. 2022-2 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. 2022-2, 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. "Welfare Exempt Property" means, in any Fiscal Year, all Assessor’s Parcels within the boundaries of CFD No. 2022-1 that have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code. B. SPECIAL TAX Commencing Fiscal Year 2022-2023 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 2022-2023, each Assessor’s Parcel within CFD No. 2022-2 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   Packet Pg. 474 A-6 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 2022-2023 shall be determined pursuant to Table 1 below. TABLE 1 ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY FISCAL YEAR 2022-2023 Land Use Category Taxable Unit Building Square Footage Assigned Special Tax Per Taxable Unit 1.Single Family Residential Property RU Less than 1,800 sq. ft $1,552 2.Single Family Residential Property RU 1,800 sq. ft to 1,950 sq. ft $1,595 3.Single Family Residential Property RU 1,951 sq. ft to 2,100 sq. ft $1,637 4.Single Family Residential Property RU 2,101 sq. ft to 2,250 sq. ft $1,764 5.Single Family Residential Property RU 2,251 sq. ft to 2,400 sq. ft $1,806 6.Single Family Residential Property RU Greater than 2,400 sq. ft $1,849 7.Multifamily Property Acre N/A $27,459 8. Non-Residential Property Acre N/A $27,459   Packet Pg. 475 A-7 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 net taxable 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 $27,459 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 $27,459 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.   Packet Pg. 476 A-8 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 $27,459 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 $27,459 per Acre. E.METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing Fiscal Year 2022-2023 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 for which an occupancy permit for a private residential use has been issued 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.   Packet Pg. 477 A-9 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 9.11 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 9.11 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 9.11 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E. Welfare Exempt Property shall be exempt from the payment of the Special Tax so long as the property qualifies as a Welfare Exempt Property. G.PREPAYMENT OF SPECIAL TAX The following additional definitions apply to this Section G: “CFD Public Facilities” means $3,000,000 expressed in 2022 dollars, which shall increase by the Construction Inflation Index on July 1, 2023, 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. 2022-2, 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. 2022-2. “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.   Packet Pg. 478 A-10 “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. 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   Packet Pg. 479 A-11 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 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   Packet Pg. 480 A-12 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. 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 non-delinquent 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:   Packet Pg. 481 A-13 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 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 2064- 2065 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. 2022-2 Bonds have been paid; (ii) all authorized facilities of CFD No. 2022-2 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. 2022-2 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. 2022-2 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.   Packet Pg. 482 A-14 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.   Packet Pg. 483   Packet Pg. 484 APPENDIX D Amended Resolution of Intention   Packet Pg. 485 Resolution No. 2022-177 Resolution 2022-177 August 17, 2022 Page 1 of 3 RESOLUTION NO. 2022-177 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING AND SUPPLEMENTING THE RESOLUTION DECLARING INTENTION TO ESTABLISH PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2022-2 (PALM) OF THE CITY OF SAN BERNARDINO WHEREAS, on July 20, 2022, the City Council (the “City Council”) of the City of San Bernardino (the “City”), 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,” adopted Resolution No. 2022-143 entitled “Resolution of the Mayor and City Council of the City of San Bernardino, California, Declaring Intention to Establish Proposed Community Facilities District No. 2022-2 (Palm) of the City of San Bernardino” (the “Resolution of Intention”), stating its intention to establish the proposed Community Facilities District No. 2022-2 (Palm) of the City of San Bernardino, County of San Bernardino, State of California (the “CFD No. 2022-2”) for the purpose of financing the public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and WHEREAS, the Resolution of Intention set the date of the public hearing on the formation of proposed CFD No. 2022-2 on September 7, 2022 at 7:00 p.m. in the Bing Wong Auditorium of the Norman F. Feldheym Public Library located at 555 W. 6th Street, San Bernardino, California or via teleconference as directed by the City due to COVID-19 social distancing guidelines; and WHEREAS, the City Council has cancelled the September 7, 2022 meeting and therefore desires to amend the date of the public hearing to October 5, 2022. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Findings. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Public Hearing. Section 10 of Resolution No. 2022-143 shall be deleted in its entirety and replaced by the following: SECTION 10. Hearing. A public hearing on the formation of proposed CFD No. 2022-2 shall be held at 7:00 p.m. on October 5, 2022, in the Bing Wong Auditorium of the Norman F. Feldheym Public Library located at 555 W. 6th Street, San Bernardino, California or via teleconference as directed by the City due to COVID-19 social distancing guidelines. SECTION 3. Amendment. This Resolution amends and supplements the Resolution of Intention and said resolution, as amended hereby, remains fully effective as therein specified   Packet Pg. 486 Resolution No. 2022-177 Resolution 2022-177 August 17, 2022 Page 2 of 3 SECTION 4. 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 17th day of August, 2022. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia R. Carvalho, City Attorney   Packet Pg. 487 Resolution No. 2022-177 Resolution 2022-177 August 17, 2022 Page 3 of 3 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2022-177, adopted at a regular meeting held on the 17th day of August, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ X _____ _______ _______ IBARRA X _____ _______ _______ FIGUEROA X _____ _______ _______ SHORETT X _____ _______ _______ REYNOSO X _____ _______ _______ CALVIN X _____ _______ _______ ALEXANDER X _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this 18th day of August, 2022. ______________________________ Genoveva Rocha, CMC, City Clerk   Packet Pg. 488   Packet Pg. 489 FUNDING AND ACQUISITION AGREEMENT Relating to CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2022-2 (PALM) Between THE CITY OF SAN BERNARDINO and WARMINGTON RESIDENTIAL CALIFORNIA, INC., a California corporation ______________ 1, 2022   Packet Pg. 490 1 FUNDING AND ACQUISITION AGREEMENT COMMUNITY FACILITIES DISTRICT NO. 2022-2 (PALM) OF THE CITY OF SAN BERNARDINO This FUNDING AND ACQUISITION AGREEMENT (the “Agreement”) is entered into the ______ day of _____________, 2022 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 WARMINGTON RESIDENTIAL CALIFORNIA, a California corporation (“Developer”). R E C I T A L S A. Pacific West Company, Hanhsing Li, Chenmei Cheng, and Ann C. Lau, have purchased that certain real property located on approximately 15.129 gross acres of land within Tract Map No. 20495 including 133 residential lots, (the “Property”) located in the City, commonly known as “Palm.” 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 acquisition of certain local and regional circulation systems, storm drains, and parkland and open space facilities (the “Acquisition Facilities”), and 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 Developer for the payment of certain fees to the City. The Acquisition Facilities and Public Facilities are generally described in Exhibit A attached hereto, which Acquisition Facilities and Public Facilities are necessary to the development of the Property. Said community facilities district shall be known as the “Community Facilities District No. 2022-2 (Palm) 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 the 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 governing 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 acquisition of the Acquisition Facilities, and the design, planning, engineering, financing, installation, and construction of the Public Facilities and expenses incidental thereto.   Packet Pg. 491 2 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. 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 acquisition of the Acquisition Facilities, and 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 Acquisition Facilities and 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 Developer, and subject to Developer 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. Developer 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 Developer 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 Developer, or Developer’s designee, shall be reimbursed from the proceeds of Bonds subsequently issued even if such Bonds must be issued on a taxable basis.   Packet Pg. 492 3 Immediately upon the City receiving proceeds of the Bonds in accordance with this Agreement, the City shall return to Developer, or Developer’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 Developer. Section 3. Sale of Bonds. Upon Developer’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 and the Acquisition 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 Developer. 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 Developer. Developer 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 Developer Deposit Agreement, between the City and Developer (the “Deposit Agreement”), Developer shall pay and advance all of the costs reasonably associated with the establishment of the District. Developer 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 Developer 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 or encumbered deposited amounts. If the Special Taxes are levied and collected, the City may   Packet Pg. 493 4 reimburse Developer 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 Developer 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. 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 Developer during regular business hours. The sole source of funds for reimbursement of any advance expenditure made by the City or Developer shall be the uncommitted and unexpended payments made by Developer 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 income 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   Packet Pg. 494 5 (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 Developer to City pursuant to the Deposit Agreement, then to fund the Acquisition Facilities and/or 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 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 Developer, 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 Developer 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 Acquisition Facilities (including any costs incurred by the City for processing Payment Requests) and/or 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 Developer.   Packet Pg. 495 6 Section 7. Construction of Acquisition Facilities. The Acquisition Facilities for which Developer seeks reimbursement under this Agreement shall be constructed and completed by Developer, as determined by the City pursuant to Section 53313.5 of the Act. Payment of the Purchase Price of the Acquisition Facilities shall be in the manner described in Section 8 hereof. Section 8. Acquisition and Payment of Acquisition Facilities. (a) Inspection. City agrees that the Acquisition Facilities are eligible for payment, provided that the timing and amount of such payment shall be determined by the City pursuant to this Section 8 of this Agreement. No payment hereunder shall be made by the City to Developer for an Acquisition Facility until such Acquisition Facility has been inspected by the City or other applicable public entity or utility and found to be substantially completed in accordance with the approved Plans. An Acquisition Facility shall be considered “substantially complete” when it has been reasonably determined by the City or other applicable public entity to be usable, subject to final completion of such items as the final lift or any other items not essential to the primary use or operation of the Acquisition Facility. For Acquisition Facilities to be acquired by the City, Developer shall request inspection using applicable City procedures. For Acquisition Facilities to be acquired by other public entities or utilities, Developer shall be responsible for obtaining such inspections and providing written evidence thereof to the City Engineer. Developer agrees to pay all inspection, permit and other similar fees of the City applicable to construction of the Acquisition Facilities, which fees are subject to reimbursement under this Agreement. (b) Agreement to Sell and Purchase Acquisition Facilities. Developer hereby agrees to sell the Acquisition Facilities to the City and the City hereby agrees to use amounts available pursuant to the terms of this Agreement to pay the Purchase Price, as defined below, thereof to Developer, subject to the terms and conditions hereof. The City shall not be obligated to pay the Purchase Price for the Acquisition Facilities except from the proceeds of the Bonds and proceeds of the Special Tax as provided herein. (c) Purchase Price. The Purchase Price for an Acquisition Facility shall be equal to the Actual Cost of such Acquisition Facility, as approved in accordance with the procedure set forth in subsection (e) below but subject to the limitations of this Section 8. (d) Payment Requests. In order to receive the Purchase Price for an Acquisition Facility, Developer shall deliver to the City Manager or his designee a Payment Request in the form of Exhibit C hereto, together with all attachments and exhibits required by this Section 8(d) to be included therewith. If the property on which the Acquisition Facility is located is not owned by the City at the time of the request, Developer shall provide a copy of the recorded documents conveying to the City Acceptable Title to the real property on, in or over which such Acquisition Facility is located, as described in Section 9(a) hereof. (e) Processing Payment Requests. Upon receipt of a Payment Request (and all accompanying documents), the City Manager or his designee shall conduct a review in order to confirm that such request is complete and to verify and approve the Actual Cost of the Acquisition Facility. The City Manager or his designee shall also conduct such review as is required in his/her discretion to confirm the matters certified in the Payment Request. Developer   Packet Pg. 496 7 agrees to cooperate with the City Manager or his designee in conducting each such review and to provide the City Manager or his designee with such additional information and documentation as is reasonably necessary for the City Manager or his designee to conclude each such review. Within 20 business days of receipt of the Payment Request, the City Manager or his designee expects to review the request for completeness and notify Developer whether such Payment Request is complete, and, if not, what additional documentation must be provided. If such Payment Request is complete, the City Manager or his designee expects to provide a written approval or denial (specifying the reason for any denial) of the request within 30 days of its submittal. (f) Payment. Upon approval of the Payment Request by the City Manager or his designee, the City Manager or his designee shall sign the Payment Request and forward the same to the Finance Director of the City. Upon receipt of the reviewed and fully signed Payment Request, the Finance Director of the City shall, within the then current City financial accounting payment cycle but in any event within fifteen (15) business days of receipt of the approved Payment Request, cause the same to be paid by the Fiscal Agent under the applicable provisions of the Fiscal Agent Agreement, to the extent of funds then on deposit in the appropriate account. The Purchase Price paid hereunder for the Acquisition Facilities shall constitute payment in full for the Acquisition Facilities, including, without limitation, payment for all labor, materials, equipment, tools and services used or incorporated in the work, supervision, administration, overhead, expenses and any and all other things required, furnished or incurred for completion of the Acquisition Facilities. (g) Timing of Requisitions. The City and Developer acknowledge that (i) Developer may submit a Payment Request for an Acquisition Facility to the City in advance of when sufficient, if any, funds are available for payment of the Purchase Price; (ii) the Payment Request submitted when there are insufficient proceeds available will be reviewed by the City as set forth in this Agreement and, if appropriate, approved for payment when such funds are available and (iii) the payment approved in the preceding manner will be deferred until the date, if any, on which there are proceeds of Special Taxes or Bonds available to make all or part of such payment, at which time the city will pay from the Special Fund or direct the Fiscal Agent to wire transfer (or pay in another mutually acceptable manner) from Bond proceeds the funds available to the payee identified in such Payment Request. (h) Restrictions on Payments. Notwithstanding any other provisions of this Agreement, the following restrictions shall apply to any payments made to Developer under Sections 8(b) and 8(f) hereof: (1) Amounts of Payments. Subject to the following paragraphs of this Section 8(h), payments for the Acquisition Facilities will be made only in the amount of the Purchase Price for the Acquisition Facilities. Nothing herein shall require the City in any event (i) to pay more than the Actual Cost of the Acquisition Facilities, or (ii) to make any payment beyond the available funds in the Special Fund or the applicable accounts identified in the Fiscal Agent Agreement. The parties hereto acknowledge and agree that all payments to Developer for the Purchase Price of   Packet Pg. 497 8 the Acquisition Facilities are intended to be reimbursements to Developer for monies already expended or for immediate payment by Developer (or directly by the City) to third parties in respect of the Acquisition Facilities. (2) Joint or Third Party Payments. The City may make any payment jointly to Developer and any mortgagee or trust deed beneficiary, contractor or supplier of materials, as their interests may appear, or solely to any such third party, if Developer so requests the same in writing or as the City otherwise determines such joint or third party payment is necessary to obtain lien releases. (3) Withholding Payments. The City shall be entitled, but shall not be required, to withhold any payment hereunder for the Acquisition Facilities if the Owners or any Affiliate are delinquent in the payment of ad valorem real property taxes, special assessments or taxes, or Special Taxes levied in the District. In the event of any such delinquency, the City shall only make payments hereunder directly to contractors or other third parties employed in connection with the construction of the Acquisition Facilities or to any assignee of Developer’s interests in this Agreement (and not to Developer or any Affiliate), until such time as Developer provides the City Manager with evidence that all such delinquent taxes and assessments have been paid. The City shall withhold final payment for an Acquisition Facility constructed on land until Acceptable Title to such land is conveyed to the City, as described in Section 9 hereof. Nothing in this Agreement shall be deemed to prohibit Developer from contesting in good faith the validity or amount of any mechanics or materialman’s lien nor limit the remedies available to Developer with respect thereto so long as such delay in performance shall not subject the Acquisition Facility to foreclosure, forfeiture or sale. In the event that any such lien is contested, Developer shall only be required to post or cause the delivery of a bond in an amount equal to the amount in dispute with respect to any such contested lien, so long as such bond is drawn on an obligor and is otherwise in a form acceptable to the City Manager or his designee. Nothing in this Section 8(h) shall prevent payments pursuant to Section 6. (i) Modification of Acquisition Facilities and Public Facilities. The descriptions of the Acquisition Facilities and Public Facilities in Exhibit A may be modified, or new Acquisition Facilities and Public Facilities may be added to Exhibit A, through a Supplement executed by the City Manager and Developer provided the modifications or new Acquisition Facilities and Public Facilities are consistent with the facilities and costs authorized to be funded by the District pursuant to the formation proceedings and the Act. Section 9. Ownership and Transfer of Acquisition Facilities. (a) Conveyance of Land and Easements to City. Acceptable Title to all property on, in or over which the Acquisition Facilities will be located, shall be deeded over to the City by way of grant deed, quitclaim, or dedication of such property, or easement thereon, if such conveyance of interest is approved by the City as being a sufficient interest therein to   Packet Pg. 498 9 permit the City to properly own, operate and maintain the Acquisition Facilities located therein, thereon or thereover, and to permit Developer to perform its obligations as set forth in this Agreement. Developer agrees to assist the City in obtaining such documents as are required to obtain Acceptable Title. Completion of the transfer of title to land shall be accomplished prior to the payment of the Purchase Price for an Acquisition Facility and shall be evidenced by an irrevocable offer of dedication or recordation of the acceptance thereof by the City Council. (b) Facilities to be Owned by the City – Title Evidence. Upon the request of the City, Developer shall furnish to the City a preliminary title report for land with respect to the Acquisition Facilities that have not previously been dedicated or otherwise conveyed to the City, for review and approval at least fifteen (15) calendar days prior to the transfer of Acceptable Title of the Acquisition Facilities to the City. The City shall approve the preliminary title report unless it reveals a matter which, in the judgment of the City, could materially affect the City’s use and enjoyment of any part of the property or easement covered by the preliminary title report. In the event the City does not approve the preliminary title report, the City shall not be obligated to accept title to such Acquisition Facility or pay the Purchase Price for the Acquisition Facility until Developer has cured such objections to title to the satisfaction of the City. (c) Facilities Constructed on Private Lands. If any portion of an Acquisition Facility is located on privately-owned land, the owner thereof shall retain title to the land and the completed Acquisition Facility until the Acquisition Facility is accepted by City and transferred to City pursuant to this Section 9. Pending the completion of such transfer, Developer shall not be entitled to receive any payment for the Acquisition Facility. Developer shall, however, be entitled to receive payments pursuant to Section 8 of the Acquisition Facility upon making an irrevocable offer of dedication of such land in form and substance acceptable to the City Manager. (d) Facilities Constructed on City Land. If any portion of an Acquisition Facility to be acquired is on land owned by the City, the City hereby grants to Developer a license to enter upon such land for purposes related to the construction (and maintenance pending acquisition) of the Acquisition Facility. The provisions for inspection and acceptance of the Acquisition Facilities otherwise provided herein shall apply. Section 10. Indemnification. Developer 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 arising out of Developer’s performance of, or failure to perform, its duties hereunder or by reason of, or arising out of, this Agreement. Section 11. 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 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 12. Representations, Covenants and Warranties of Developer. Developer represents and warrants for the benefit of the City as follows:   Packet Pg. 499 10 A. Organization. Developer is duly organized, validly existing and in good standing under the laws of the State of California, is duly qualified to conduct business as a corporation and is in good standing under the laws of the State of California and has the corporate power and corporate authority to own its properties and assets and to carry on its business as now being conducted and as now contemplated. B. Authority. Developer has the corporate power and corporate authority to enter into this Agreement, and has taken all action necessary to cause this Agreement to be executed and delivered by Developer, and this Agreement has been duly and validly executed and delivered by Developer. C. Binding Obligation. This Agreement is a legal, valid and binding obligation of Developer, enforceable against Developer in accordance with its terms, subject to bankruptcy and other equitable principles. D. Compliance with Laws. Developer shall not with knowledge commit, suffer or permit any act to be done in, upon or to the lands of Owners 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 or the Acquisition Facilities. E. Requests for Payment. Developer represents and warrants that (i) it will not request payment from the City out of the Special Taxes or proceeds of the Bonds for the acquisition of any improvements other than the Acquisition Facilities, and (ii) it will diligently follow all procedures set forth in this Agreement with respect to the Payment Request for the Acquisition Facilities. F. Additional Information. Developer 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. G. Continuing Disclosure. Developer 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. Developer 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. Developer 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 Developer owns property within the District responsible for more than 20% of the Special Taxes levied in such fiscal year, then Developer 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 Developer 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   Packet Pg. 500 11 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 Developer’s certified public accountant which are available to the investing public (which may be consolidated with Developer’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 Developer, 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. Developer 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. The Developer shall notify the Owners who 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 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 13. Independent Contractor. Developer 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 Developer. The City shall have no responsibility or liability for the payment of any amount to any employee or subcontractor of Developer. Section 14. 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 Acquisition Facilities and 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 Acquisition Facilities and Public Facilities. Developer 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 Developer and City intend to create for the purpose of providing an assured source of funding for construction, acquisition and/or equipping of the Acquisition Facilities and 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. Section 15. Disclosure of Special Taxes. (a) From and after the date of this Agreement, Developer 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. Developer shall (i) maintain records of each Notice of Special Tax for a period of five (5) years, and (ii) shall provide copies of each notice to City promptly following the giving of such notice. Developer shall include the Notice of Special Tax in all Developer’s applications for Final   Packet Pg. 501 12 Subdivision Reports required by the Department of Real Estate (“DRE”) which are filed after the effective date of this Agreement. Developer 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 Taxes 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. Developer 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. Developer 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. Developer intends to comply with this requirement by providing prospective homebuyers who request such additional written information, with the sample property tax bill in the Master Property Disclosure Report, a copy of which has presented to and approved by the City. Section 16. Termination and Dissolution. Prior to the issuance of Bonds, Developer 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. Developer 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 Developer pays all City fees or posts separate security therefore. Such termination of this Agreement and cancellation of Special Taxes shall have no effect on Developer’s obligations to pay City Fees upon issuance of a building permit.   Packet Pg. 502 13 Section 17. 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 18. 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 Developer unless terminated in writing pursuant to Section 16. Section 19. Prompt Action. All consents, approvals and determinations required of either the City or Developer pursuant to this Agreement shall be promptly given or made, and shall not be unreasonably withheld or conditioned. Section 20. 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 or the design and acquisition or construction of the Acquisition Facilities, 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]   Packet Pg. 503 S-1 IN WITNESS WHEREOF, the parties have caused this agreement to be signed as of the date first above written. Dated:WARMINGTON RESIDENTIAL CALIFORNIA, INC., a California corporation By: ________________________________ _________________________ Authorized Agent Dated:CITY OF SAN BERNARDINO By: ________________________________ Robert D. Field City Manager ATTEST: By: City Clerk APPROVED AS TO FORM: By: Bond Counsel -Signature Page- Funding and Acquisition Agreement   Packet Pg. 504 A-1 EXHIBIT A DESCRIPTION OF PUBLIC FACILITIES The immediately following table lists the Acquisition Facilities to be constructed by Developer 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. A. Acquisition Facilities Estimated Local Circulation Improvements $ 30,981.00 Regional Circulation Improvements 323,855.00 Storm Drainage Improvements(1)352,049.00 Parkland and Open Space Improvements 1,265,875.00 B. Public Facilities Storm Drain (Off-Site)$ 380,000.00 GRAND TOTAL ELIGIBLE ACQUISITION FACILITIES AND PUBLIC FACILITIES $2,352,761.00 (1) The estimated gross amount due for the Storm Drainage Improvements fee is $522,146. Warmington expects to receive fee credits in the amount of $170,097. Thus, the expected net amount due is $352,049.   Packet Pg. 505 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 subject 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 will 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. “Acceptance Date” means the date the City Council takes final action to accept dedication of or transfer of title to the Acquisition Facilities. “Acquisition Facilities” means the facilities described as such in Exhibit A to the Agreement. “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 Developer, any other Person who control, is controlled by or is under common control with the Developer, for purposes hereof, control means the power to exercise a controlling influence over the management or policies of a person, unless such power 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. “Actual Cost” means the substantiated cost of the Acquisition Facilities, which costs may include: (i) the costs incurred by the Developer for the construction of the Acquisition Facilities, including labor, material and equipment costs; (ii) the costs incurred by the Developer in preparing the Plans for the Acquisition Facilities and the related costs of environmental evaluations of the Acquisition Facilities; (iii) the fees paid to governmental agencies for obtaining permits, licenses or other governmental approvals for the Acquisition Facilities; (iv) a construction and project management fee of five percent (5%) of the costs described in clause (i) above incurred for the construction of the Acquisition Facilities; (v) professional costs incurred   Packet Pg. 506 B-2 by the Developer or the City associated with the Acquisition Facilities, such as engineering, legal, accounting, inspection, construction staking, materials testing and similar professional services; (vi) costs directly related to the construction and/or acquisition of the Acquisition Facilities, such as costs of payment, performance and/or maintenance bonds, and insurance costs (including costs of any title insurance required hereunder); and (vii) costs of any real property or interest therein acquired from a third party, which real property or interest therein is either necessary for the construction of such Acquisition Facility (e.g., temporary construction easements, haul roads, etc.) or is required to be conveyed with such Acquisition Facility in order to convey Acceptable Title thereto to the City. Actual Cost shall not include any cost of carry or interest expense with respect to any construction loan obtained by the Developer with respect to the Acquisition Facilities. “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; local and regional circulation system, storm drain, and parkland and open space. “Deposit Agreement” means the Deposit Agreement between the City and the Developer. “District Representative” means the City Manager of the City, or his or her designee. “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. “Owners” means Pacific West Company, a California limited partnership, Hanhsing Li, an unmarried man, Chenmei Cheng, as surviving joint tenant, and Ann C. Lau, a married woman as her sole and separate property, as the Owners of the Property, and their successors and assigns, other than individual homebuyers.   Packet Pg. 507 B-3 “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. “Plans” means the plans, specifications, schedules and related construction contracts for the Acquisition Facilities approved pursuant to the applicable standards of the City or other entity that will own, operate or maintain the Acquisition Facilities when completed and acquired. “Purchase Price” means the amount paid by the City for the Acquisition Facilities determined in accordance with Section 8 hereof, being an amount equal to the Actual Cost of such Acquisition Facilities, but subject to the limitations and reductions provided for in Section 8. “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.   Packet Pg. 508 C-1 EXHIBIT C FORM OF PAYMENT REQUEST City of San Bernardino Community Facilities District No. 2022-2 (Palm) The undersigned, ______________________, a duly authorized representative of Developer, hereby requests payment of the Purchase Price of the Acquisition Facilities described in Attachment A attached hereto. Capitalized undefined terms shall have the meanings ascribed thereto in the Funding and Acquisition Agreement, dated as of ___________ 1, 2022 (the “Agreement”), by and between the City of San Bernardino (“City”) for the City of San Bernardino Community Facilities District No. 2022-2 (Palm) (the “CFD”), and WARMINGTON RESIDENTIAL CALIFORNIA, INC., a California corporation (“Developer”). In connection with this Payment Request, the undersigned hereby represents and warrants to the CFD and the City as follows: 1. He (she) is a duly authorized representative of Developer, qualified to execute this request for payment on behalf of Developer and knowledgeable as to the matters set forth herein. 2. The Acquisition Facilities for which payment is being sought under this payment request have been substantially completed in accordance with the Agreement. 3. The true and correct Actual Cost of the Acquisition Facilities is set forth in Attachment A. 4. Attached hereto are invoices, receipts, worksheets and other evidence of costs which are in sufficient detail to allow the City to verify the Actual Cost of the Acquisition Facilities. 5. There has not been filed with or served upon Developer notice of any lien, right to lien or attachment upon, or claim affecting the right to receive the payment requested herein which has not been released or will not be released simultaneously with the payment of such obligation, other than materialmen’s or mechanics’ liens accruing by operation of law. Copies of lien releases for all work for which payment is requested hereunder are attached hereto. 6. Developer is in compliance with the terms and provisions of the Agreement. The Purchase Price for the Acquisition Facilities shall be payable from the appropriate account created pursuant to the Fiscal Agent Agreement or the Special Fund established pursuant to the Agreement.   Packet Pg. 509 C-2 I hereby certify that the above representations and warranties are true and correct. Dated:WARMINGTON RESIDENTIAL CALIFORNIA, INC., a California corporation By: Name: Title: By execution of this Payment Request, the City does hereby approve of the payment as described in this Payment Request and directs the Fiscal Agent to pay such amounts, first, from bond proceeds held in the designated account pursuant to the Fiscal Agent Agreement and, second from any surplus Special Taxes held by the City as applicable, to the payee listed above and/or the City shall pay all or a portion thereof from funds designated by the City for such purpose. CITY OF SAN BERNARDINO for the City of San Bernardino Community Facilities District No. 2022-2 (Palm) By: Name: City Manager   Packet Pg. 510 C-3 ATTACHMENT A City Acquisition Facility Estimated Cost Actual Cost Purchase Price Total Purchase Price to be Paid $   Packet Pg. 511 D-1 EXHIBIT D CITY OF SAN BERNARDINO SPECIAL TAX INFORMATION SHEET Community Facilities District No. 2022-2 (Palm) 1.WHAT IS COMMUNITY FACILITIES DISTRICT (CFD) NO. 2022-2? CFD No. 2022-2 (Palm) 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. 2022-2 (Palm) 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. 2022-2 (Palm) for the 2022-23 fiscal year are summarized below. Land Use Category Taxable Unit Building Square Footage Assigned Special Tax Per Taxable Unit 1. Single Family Residential Property RU Less than 1,800 sq. ft $1,552 2. Single Family Residential Property RU 1,800 sq. ft to 1,950 sq. ft $1,595 3. Single Family Residential Property RU 1,951 sq. ft to 2,100 sq. ft $1,637 4. Single Family Residential Property RU 2,101 sq. ft to 2,250 sq. ft $1,764 5. Single Family Residential Property RU 2,251 sq. ft to 2,400 sq. ft $1,806 6. Single Family Residential Property RU Greater than 2,400 sq. ft $1,849 7. Multifamily Property Acre N/A $27,459 8. Non-Residential Property Acre N/A $27,459 4.HOW LONG WILL I HAVE TO PAY THE CFD NO. 2022-2 SPECIAL TAX? Special Taxes will not be collected after fiscal year 2064-65. 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. 2022-2 (Palm) 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. 2022-2, contact the City of San Bernardino’s CFD No. 2022-2 (Palm) administrator, Spicer Consulting Group, LLC, 41619 Margarita Road, Suite 101, Murrieta, CA 92591, phone (866-504-2067).   Packet Pg. 512 8 2 1 PUBLIC HEARING City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager Barbara Whitehorn, Agency Director of Administrative Services Department:Human Resources Subject:Ordinance Adjusting the Salary and Benefits for the Position of City Council Member Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Review and consider the information provided for adjusting the salary and benefits for the position of City Council Member, provide direction for modification, adopt the recommendation from the Elected Official Compensation Committee as presented, or receive and file; and 2. If decided by the Mayor and City Council: introduce, read by title only, and waive further reading of Ordinance No. MC-1595 of the Mayor and City Council of the City of San Bernardino, California, amending Chapter 2.82.020 of the San Bernardino Municipal Code to adjust the salary and benefits of the City Council Members as recommended by the Elected Official Compensation Advisory Commission. Background On September 21, 2022, an ordinance adjusting the salary and benefits for the position of City Council Member was brought before the Mayor and City Council as a Public Hearing item. It was decided that the item would be brought back for consideration after all bargaining groups had entered into their respective labor agreements with the City. All labor agreements have not yet been executed; however, this item is being brought back earlier than anticipated to allow the Mayor and City Council the opportunity to possibly adopt an ordinance that would be effective upon the commencement of the terms of council members elected at the next regular election (i.e., following   Packet Pg. 513 8 2 1 certification of the November 2022 election). If the adoption of a proposed ordinance is delayed beyond the November 2022 election, the effective date of the ordinance would be after the following regular election (i.e., November 2024). The San Bernardino City Charter establishes the authority for setting compensation of the Mayor and City Council Members. Specifically, City Charter Article III, Section 305 titled “Compensation; Expenses” states: “Compensation for the Mayor and Council Members shall be established by ordinance following a public hearing, giving due consideration to the recommendations of an advisory commission charged with the periodic review of compensation for City-elected officials. Compensation for the Mayor shall be commensurate with that for a full-time position. No ordinance increasing such salaries shall become effective until the date of commencement of the terms of Council Members elected at the next regular election. The Mayor and Council Members shall receive reimbursement for actual and necessary expenses incurred in the performance of their duties of office.” The Mayor and City Council established the Elected Official Compensation Advisory Commission on February 21, 2018 (Ordinance MC-1463). The nine-member commission was tasked with serving in an advisory capacity to the Mayor and City Council in making recommendations relating to the compensation of city-elected officials. The commission conducts compensation surveys of city-elected officials in other California charter and/or general law cities, reviews Government Code provisions for compensation of city-elected officials and provides compensation recommendations to the Mayor and City Council pursuant to Section 305 of the City Charter. Recently, in response to direction from the City Council, the Elected Officials Compensation Advisory Commission was reactivated. The Elected Officials Compensation Advisory Commission has met (5) five times since October 2021 (October 13, 2021; November 10, 2021; November 30, 2021; January 10, 2022; and March 7, 2022). Currently, the San Bernardino Municipal Code defines the compensation for both the Mayor and City Council Members. More specifically, the compensation for City Council Members, is noted in Section 2.82.020 of the San Bernardino Municipal Code (titled “Compensation of City Council Members”), which states: “Commencing January 1, 2019, each City Council Member shall receive the following compensation: A. Annual salary of $14,000; B. Employer health benefits contribution equivalent to that offered by the City to management employees; and C. An auto allowance of $500 per month.   Packet Pg. 514 8 2 1 The compensation set forth herein shall be paid without regard to the number of City Council meetings attended by the applicable City Council Member. Any City Council Member may waive all or any portion of her or his compensation. The compensation set forth herein is exclusive of any amounts payable to a City Council Member as per day compensation for City business-related travel and further exclusive of any amounts payable to a City Council Member for out-of-town attendance on City-related business.” Discussion The Commission commenced on October 13, 2021, and reviewed the methodology previously used to establish elected official salaries in 2018. The Commission agreed to use the same 12 cities with part-time Council Members that were used in 2018. Per the Commission’s October 13, 2021 directive, staff surveyed cities to gather additional information or verify the information available on their respective websites. The salary and total compensation for City Council members is presented in Attachment 1. Because most salaries are governed by Charter or Municipal Code, the salary increases were modest. The City of San Bernardino’s data includes the increases in benefits presented in the salary and benefits resolution for Management and Confidential employees approved at the November 3, 2021 City Council meeting. The average annual salary for part-time City Council Members is $17,188, compared to San Bernardino’s Council pay of $14,000. As depicted in Attachment 2, the City of San Bernardino’s benefits exceed the average. As such, the City’s total compensation also exceeds the part-time City Council’s average. As outlined in the City of San Bernardino Charter, the City Council has the authority to adjust the compensation package of elected officials including the position of City Council Member by ordinance following a public hearing, while giving due consideration to the recommendations of an advisory commission. At its March 7, 2022, meeting, the Elected Officials Compensation Advisory Commission recommended the following: A. Annual Salary of $21,000 B. Employer health benefits contribution equivalent to that offered by the City to management employees; C. An auto allowance of $725 per month; D. $125 per meeting when acting as an official City Council representative, outside of regular Council Member duties, for attending any meeting at the request of City Council and on behalf of the City of San Bernardino. For example, acting as the City’s representative to a Board. Attendance at meetings in which the Council Member is not acting as a representative of the City Council shall not be compensated; and E. Annual Cost of Living Adjustment (COLA) equivalent to that offered by the   Packet Pg. 515 8 2 1 City to management employees. The Commission recommended for the City Council Members annual salary to amount to $21,000, to align with the Cities of Fontana and Moreno Valley as they had similar population sizes to the City of San Bernardino. Both cities also offer additional monies to Council Members who attend specific meetings. Furthermore, the Commission emphasized the importance of compensating elected leaders at levels suitable to attract a diverse talent pool and to provide adequate compensation for this region while serving the City. At present, the Mayor and City Council, after discussing the survey results may consider whether to, and to what degree, the salary and benefits for the position of City Council Member should be adjusted as recommended by the Elected Official Compensation Advisory Commission. It is important to underscore that any salary and benefit adjustments would be effective on the date of commencement of Council Members elected at the next regular election. 2021-2025 Strategic Targets and Goals Reviewing and discussing the salary of the City Council Members to appropriately reflect the duties of the office following the 2016 amendment of the City Charter aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community. Fiscal Impact There is no fiscal impact associated with preparing the salary survey and with the Mayor and City Council introducing and waiving further reading of Ordinance No. MC- 1595. Should Mayor and City Council elect to adopt the recommendation of the Commission without any changes, the fiscal impact would be approximately $40,000 in FY 2022/23 and $83,000 in FY 2023/24. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Review and consider the information provided for adjusting the salary and benefits for the position of City Council Member, provide direction for modification, adopt the recommendation from the Elected Official Compensation Committee as presented, or receive and file; and 2. If decided by the Mayor and City Council: introduce, read by title only, and waive further reading of Ordinance No. MC-1595 of the Mayor and City Council of the City of San Bernardino, California, amending Chapter 2.82.020 of the San Bernardino Municipal Code to adjust the salary and benefits of the City Council Members as recommended by the Elected Official Compensation Advisory   Packet Pg. 516 8 2 1 Commission. Attachments Attachment 1 City Council Member Salary Data Attachment 2 City Council Member Benefits Data Attachment 3 Ordinance No. MC-1595 Ward: All Wards Synopsis of Previous Council Actions: October 3, 2018 - Ordinance No. MC 1504 was adopted by the Mayor and City Council, establishing compensation and benefits for the city elected officials. September 19, 2018 - Introduced for first reading Ordinance No. MC-1504 of the Mayor and City Council of the City of San Bernardino, California, establishing compensation and benefits for the City-Elected officials.   Packet Pg. 517 Agency General or Charter City How is the City Council's Salary Determined?Annual Base Salary (Max) *Estimated Employer Paid Benefits Package (Annual) Estimated Total Employer Cost (Salary & Benefits) City Population **Median Household Income Public Pay 2020 1 Chino General Set by Ordinance No.2008-20 in accordance with Government Code 36516 Part 1 Section 4. MC 2.16.010. $ 15,372.00 $28,752.00 $ 44,124.00 91,403 $ 87,090.00 $ 40,340.00 2 Corona General Set by Ordinance No. 1738 in accordance with Government Code 36516 Part 1 Section 2e. MC 2.08.120. $ 9,600.00 $ 11,363.04 $ 20,963.04 157,136 $ 86,790.00 $ 9,893.00 3 Fontana General Set by Ordinance No.1571 in accordance with Government Code 36514 Part 1 Section 4. MC 2.39 - 2.41. $ 21,060.00 $ 26,469.96 $ 47,529.96 208,393 $ 80,800.00 $ 31,811.00 4 Moreno Valley General Set by Ordinance No.956 in accordance with Government Code 36516 Part 1 Section 4. MC 2.04.050. $ 21,144.00 $ 24,520.00 $ 45,664.00 208,634 $ 65,449.00 $ 38,995.00 5 Ontario General Set by Ordinance No. 3065 in accordance with Government Code 36516 Part 1 and Section 4. MC 2-1.203 & 2-1.204 $ 22,614.12 $ 25,989.24 $ 48,603.36 175,265 $ 75,266.00 $ 32,925.00 6 Pomona Charter In accordance with Government Code Section 36516(a). Per Charter Sec. 404, salaries may also be increased each calendar year by an amount equal to the inflationary change listed in the Consumer Price Index (CPI-U) for the metropolitan Los Angeles-Anaheim-Riverside area published annually by the United States Bureau of Labor Statistics. $ 9,828.00 $ 16,695.00 $ 26,523.00 151,713 $ 67,202.00 $ 19,163.00 7 Rancho Cucamonga General MC 2.16.030 in accordance with Government Code 36516 Part 1 Section 4. Salary Adjustment MC 2.16.040. $ 15,716.76 $ 13,200.00 $ 28,916.76 174,453 $ 92,773.00 $ 26,465.00 8 Redlands General Set by Ordinance No.1903 in accordance with Government Code 36516 Part 1 Section 2c. MC 2.12.040' MC 2.02030 $ 6,000.00 $ 10,800.00 $ 16,800.00 73,168 $ 72,410.00 $ 6,000.00 9 Rialto General Set by Ordinance No.1660 in accordance with Government Code 36516 Part 1 Section 4. M C 2.12.040 $ 23,051.52 $ 38,184.00 $ 61,235.52 104,026 $ 70,188.00 $ 36,811.00 10 Riverside Charter Set by Ordinance No. 7279. Per Charter, any increase may not exceed 5% of their existing salary every odd-numbered year. $ 41,376.00 $ 22,882.80 $ 64,258.80 314,998 71,967.00$ 49,717.00$ 11 Victorville Charter Set by Ordinance No.2180. Per Ordinance No.2017 any increase may not exceed an amount equal to 5% for each calendar year from the operative date of the last adjustment. MC 2.16.020 & 2.16.030 $ 11,314.56 $ 12,600.00 $ 23,914.56 134,810 $ 60,391.00 $ 13,549.00 12 West Covina General Set by Ordinance No.1830 in accordance with Government Code 36516 Section 4. MC 2-23. $ 9,180.00 $ 2,700.00 $ 11,880.00 109,501 $ 82,135.00 $ 9,929.00 $ 17,188.08 $19,513.00 $36,701.08 158,625 $76,038.42 $26,299.83 City of San Bernardino Charter Advisory Commission recommends compensation and salaries must be established by Ordinance after Public Hearing $ 14,000.00 $ 26,688.00 $ 40,688.00 216,995 $ 49,721.00 $ 26,360.00 Survey 2021 *Total Estimated Employer Paid Benefits includes health contribution, auto allowance, cell phone allowance, & deferred compensation where applicable. AVERAGE: Part-Time City Council: Summary ATTACHMENT A   Packet Pg. 518 Basic Life Accidental Death & Dismemberment (AD&D)Short Term Long Term 1 City of Chino - General City $100,000 N/A N/A N/A $1,776 for EE Only $1,776 for EE+FAM Executive $120/mo or $1,440/yr and Excess employer health contribution amount may roll over into deferred comp. $500/mo or $6,000/yr N/A Yes 4 years 401(a) City contributes $1 per pay period per participating elected official.28,752$ 2 City of Corona - General City $50,000 $50,000 N/A N/A $473.46 for EE Only $946.92 for EE+FAM Executive N/A N/A N/A Yes 4 years N/A 11,363$ 3 City of Fontana - General City $50,000 N/A N/A N/A $2,105.83 for EE Only $2,105.83 for EE+FAM N/A $776.70/mo or $9,320.40/yr If waive all benefits N/A $100/mo or $1,200/yr Yes 4 years - $50 per meeting for Housing Stipend - $100 per meeting for Fire Protection District Stipend 26,470$ 4 City of Moreno Valley - General City $50,000 N/A N/A N/A $1,500 for EE Only $1,500 for EE+FAM Executive Any excess employer health contribution amount may roll over into deferred comp. $500/mo or $6,000/yr $35/mo or $420/yr Yes 4 years - $100 per meeting for Community Services District Stipend 24,520$ 5 City of Ontario - General City $106,000 $109,000 66 2/3% of salary up to $3,461.54/wk 100% of premium; $15,000/mo max $1,990.77 for EE Only $1,990.77 for EE+FAM Executive Any excess employer health contribution amount may roll over into deferred comp.N/A $175/mo or $2,100/yr Yes 4 years N/A 25,989$ 6 City of Pomona - Charter City $150,000 $150,000 66 2/3% of base salary 66 2/3% of base salary $775 for EE Only $775 for EE+FAM Executive $616.25/mo or $7,395/yr If waive all benefits N/A N/A Yes 4 years Elected officials reimbursed for actual phone and car mileage.16,695$ 7 City of Rancho Cucamonga - General City N/A N/A N/A N/A Cover 100% Dental & Vision for EE+Fam $900 for EEOnly $900 for EE+Fam N/A N/A $200/mo or $2,400/yr N/A Yes 4 years N/A $ 13,200 8 City of Redlands - General City N/A N/A N/A N/A $900 for EE Only $900 for EE+FAM N/A N/A N/A N/A Yes 4 years N/A 10,800$ 9 City of Rialto - General City $300,000 N/A 100% coverage 100% coverage Cover 100% medical & dental + $300/yr towards Vision for EE Only Cover 100% medical & dental for EE+FAM ($2,432.00 is the highest carrier cost)Management $750/mo or $9000/yr Option of City vehicle. Option of City cell phone.Yes 4 years 38,184$ 10 City of Riverside - Charter City 2x annual salary; $700k max 2x annual salary; $700k max N/A 60% of monthly pay $1,481.90 for EE Only $1,481.90 for EE+FAM Executive $75/mo or $900/yr (Employee must contribute $25/mo or $300/yr) $350/mo or $4,200/yr N/A Yes 4 years N/A 22,883$ 11 City of Victorville - Charter City $10,000 N/A N/A N/A $900 for EE Only $900 for EE+FAM Full-Time Miscellaneous N/A N/A $150/mo or $1,800/yr Yes 4 years N/A 12,600$ 12 City of West Covina - General City $100,000 $100,000 N/A N/A Per 2018 Benefit Resolution; no city contribution Confidential N/A $150/mo or $1800/yr N/A Yes 4 years -$75 per meeting for Community Development Commission; not to exceed $150/mo. $2,700 City of San Bernardino - Charter City $75,000 $75,000 N/A N/A $1,125 for EE Only $1,724 for EE+FAM Management Confidential Excess health contribution amount may roll over into deferred comp. If all benefits waived, $3,500/yr ($291.67 per month) will go into deferred comp. $500/mo or $6,000/yr Option of City Cell Yes 4 years N/A 26688 Survey 2021 Total Deferred Compensation Plan (Monthly or Annually) Car Allowance (Monthly or Annually)OtherTerm Eligible to Enroll in CalPERS? (Yes/No) Phone Allowance (Monthly or Annually)Agency Life Insurance Disability Employer's Health Contribution (Monthly) EE = Employee FAM = Family *Employee Group Employer's Health Contribution Is Tied To City Council: Benefits ATTACHMENT B   Packet Pg. 519 Ordinance No. MC-1595 1 1 4 2 ORDINANCE NO. MC-1595 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING SECTION 2.82.020 OF THE SAN BERNARDINO MUNICIPAL CODE TO INCREASE CITY COUNCIL MEMBER COMPENSATION WHEREAS, the City San Bernardino, California (“City”) is a chartered city and municipal corporation, duly organized under the California Constitution and laws of the State of California; and WHEREAS, Section 305 of the San Bernardino Charter (“Charter”) states that the compensation for City Council Members shall be established by ordinance following a public hearing and after giving due consideration to the recommendations of an advisory commission charged with the periodic review of compensation for City elected officials; and WHEREAS, Section 305 of the Charter further states that no ordinance increasing salaries of City Council Members shall become effective until the date of commencement of the terms of Council Members elected at the next regular election; and WHEREAS, Section 305 of the Charter further states that City Council Members shall receive reimbursement for actual and necessary expenses incurred in the performance of their duties of office; and WHEREAS, Section 2.82.020 of the San Bernardino Municipal Code currently identifies the kinds of compensation City Council Members are to receive; and WHEREAS, a nine-member Elected Official Compensation Advisory Commission (“Commission”), established by the Mayor and City Council on February 21, 2018, met five (5) times between October 2021 and March 2022; and WHEREAS, the Commission reviewed the methodology previously used to establish elected official salaries in 2018 and reviewed salaries and benefits provided to part-time city council members from the same twelve (12) cities that were reviewed in 2018; and WHEREAS, the Commission recommended increased salary benefits in order to align itself with other local cities of similar population sizes and in order to attract a diverse talent pool and to provide adequate compensation for this region while serving the City; and WHEREAS, at its March 7, 2022 meeting, the Commission recommended that: 1) The City Council Member’s annual salary be increased from $14,000 to $21,000; 2) That City Council Members continue to receive employer health benefits contribution equivalent to that offered by the City to management employees; 3) That City Council Member’s auto allowance be increased from $500 to $725 per month;   Packet Pg. 520 Ordinance No. MC-1595 1 1 4 2 4) That City Council members receive $125 per meeting when acting as an official City Council representative, outside of regular Council Member duties, and for attending any meeting at the request of the City Council on behalf of the City of San Bernardino; and 5) That City Council Members receive an annual cost of living adjustment equivalent to that offered by the City to management employees. THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1.The above recitals are true and correct and are incorporated herein by this reference. SECTION 2.Section 2.82.020 of the San Bernardino Municipal Code is hereby amended, in its entirety, to state as follows: “2.82.020 Compensation of City Council Members Commencing January 1, 2023, each City Council member shall receive the following compensation: A. Annual salary of $21,000; B. Employer health benefits contribution equivalent to that offered by the City to management employees; C. An auto allowance of $725 per month; D. Having received advanced approval from the City Council, $125 per meeting when acting as an official City Council representative, outside of regular Council Member duties, and for attending any meeting at the request of the City Council on behalf of the City of San Bernardino; and E. An annual cost of living adjustment equivalent to that offered by the City to management employees. The compensation set forth herein shall be paid without regard to the number of City Council meetings attended by the applicable City Council member. Any City Council member may waive all or any portion of her or his own compensation. The compensation set forth herein is exclusive of any amounts payable to a City Council member as per day compensation for City business-related travel and further exclusive of any amounts payable to a City Council member for out of town attendance on City-related business.” SECTION 3.Certification. 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.   Packet Pg. 521 Ordinance No. MC-1595 1 1 4 2 SECTION 4. CEQA. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. SECTION 5.Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance, or any part thereof, is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase be declared unconstitutional. If for any reason any portion of this ordinance is found to be invalid by a court of competent jurisdiction, the balance of this ordinance shall not be affected. SECTION 6.Effective Date. This Ordinance shall take effect thirty (30) days after its adoption. Notwithstanding the foregoing, in accordance with Section 305 of the City Charter, this Ordinance may not become effective until the date of commencement of the terms of Council Members elected at the next regular election. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2022. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 522 Ordinance No. MC-1595 1 1 4 2 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-1595, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the XX day of , 2022 and adopted at a regular meeting held the XX day of , 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2022. Genoveva Rocha, CMC, City Clerk   Packet Pg. 523 7 7 5 PUBLIC HEARING City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager; Daniel Hernandez, Agency Director of Public Works, Operations, and Maintenance Department:Public Works Subject:Public Hearing on Annexation No. 24 to Community Facilities District 2019-1 (Ward 6) Recommendation: The Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; and 2. Adopt Resolution No. 2022-207 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. 24); and 3. Hold a special landowner election and canvass the election; and 4. Adopt Resolution No. 2022-208 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. 24); and 5. Introduce, read by title only, and waive further reading of Ordinance No. MC-1597 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2022-2023 to pay annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping,   Packet Pg. 524 7 7 5 parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and 6. Schedule the adoption of Ordinance No. MC-1597 for October 19, 2022. Background On July 20, 2022, the Mayor and City Council adopted Resolution No. 2022-139, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”. A public hearing was set for September 7, 2022, on the proposed annexation of the said territory into the community facilities district. The City Council cancelled the September 7, 2022, meeting and voted to amend the date of the Public Hearing to October 5, 2022. As required by the Resolution of Intention, a boundary map was recorded on July 26, 2022, at 11:21 a.m. in Book 90 Page 46, Document No. 2022-0258077 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 10.10 gross acres of a vacant residential lot within the City, requesting that the City assist them in annexing their properties into CFD No. 2019-1 under the Mello-Roos Act. The proposed project will consist of 95 detached single-family lots. The State legislature enacted the Mello-Roos Act in 1982 to assist public agencies in financing certain public improvements by either issuing tax exempt securities that are repaid by annual levy of special taxes, or to provide for the financing of on-going public services. The landowner requested the City annex into CFD No. 2019-1 to levy a special tax to cover the costs associated with the maintenance of public improvements. The public facilities and services proposed to be financed within the territory to be annexed to the District are the following: 1. Public lighting and appurtenant facilities, including streetlights within public rights-of-way and traffic signals; and 2. Maintenance of streets, including pavement management, and provide street sweeping; and 3. Maintenance of parks; and 4. Graffiti abatement; and 5. 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.   Packet Pg. 525 7 7 5 The proposed area to be annexed into the CFD will be included in Tax Zone 25 and is located south of W. Highland Avenue, west of Medical Center Drive, as shown in Attachment #12. The maximum annual special tax for this development has been calculated to be $191 per unit for FY 2022/23. This tax rate includes a Maximum Special Tax A of $174 per unit per year for maintenance services of public facilities and a Maximum Annual Special Tax B (Contingent) of $17 per unit per year. Special Tax B (Contingent) is for the maintenance and operation of the improvements described in Exhibit “B” attached hereto. If the Property Owners Association (POA) were to default of its obligation to maintain such improvements, the City would be able to collect funds to pay for those services. Annual Special Tax A and Annual Special Tax B (Contingent) rate are proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. The property owners have agreed to initiate and conduct the CFD annexation proceedings pursuant to the Mello-Roos Act of 1982. The property owners have submitted a “Consent and Waiver” form on file in the City Clerk’s Office to initiate and conduct proceedings pursuant to the Mello-Roos Act in 1982, for the annexation into the CFD and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election. 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: 1. Resolution declaring City intent to annex territory to Community Facilities District No. 2019-1 including the boundary of the area to be annexed and the rate and method of apportionment of special taxes within the annexation area (the special tax applies only to properties within the annexation area), adopted July 20, 2022. 2. 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. 3. Resolution declaring the results of the election and directing the recording of the notice of special tax lien. 4. 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 October 19, 2022. Discussion The Resolution of Intention called for a public hearing to be held on September 7, 2022. The City Council cancelled that meeting and voted to amend the Public Hearing date to October 5, 2022, on the issue of the annexation of territory into CFD No. 2019-1.   Packet Pg. 526 7 7 5 Under the Mello-Roos Act, the Mayor and City Council must hold the public hearing and consider any complaints 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 complaints against the establishment of the CFD, the Council may not create the CFD. If a majority protest is not filed, the Mayor and City Council may adopt the resolution establishing the CFD. Adoption of Resolution No. 2019-178 on July 17, 2019, established CFD 2019-1, pursuant to the requirements of Government Code Section 53325.1. After a CFD is formed, the Mello-Roos Act requires that for any annexations into the CFD an election be held on the question of whether the proposed special taxes should be levied. The election requires a two-thirds vote in favor of levying the special tax. The landowners filed waivers with respect to the conduct of the election pursuant to Government Code Sections 53326(a) and 53327(b), meaning that the time limits and procedural requirements for conducting an election under the Mello-Roos Act do not have to be followed. Accordingly, City staff has already mailed the election ballots to the landowners and required the ballots to be returned by the close of the public hearing. If the Mayor and City Council adopt Resolution No. 2022-207, it may immediately proceed to the opening of the ballots and adopt Resolution No. 2022-208 declaring the results of the election. 2021-2025 Strategic Targets and Goals This project is consistent with Key Target No 1. Improved Operational & Financial Capacity and Key Target No. 4: Economic Growth & Development. This project will contribute to ensure that the City is clean and attractive and provide infrastructure designed for long term economic growth. Fiscal Impact The individual property owners in the CFD will be responsible for annual payments of special taxes. It is estimated, upon full completion of the development, there will be an annual collection of special tax revenues of approximately $16,489 from Special Tax A to be used to pay for maintenance costs within the development. On March 1 of each year, every taxable unit for which a building permit has been issued within the boundaries of the CFD, will be subject to the special tax for the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to buildout of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be applied to property within recorded final subdivision maps, as well as other undeveloped property within the boundaries of the CFD. All costs associated with annexation into the CFD have been borne by the Developer. By annexing into the CFD, the costs of maintaining improvements located within the development will be financed through special taxes levied on the parcels within CFD No. 2019-1 and not through the City’s General Fund. Conclusion   Packet Pg. 527 7 7 5 The Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; and 2. Adopt Resolution No. 2022-207 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. 24); and 3. Hold a special landowner election and canvass the election; and 4. Adopt Resolution No. 2022-208 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. 24); and 5. Introduce, read by title only, and waive further reading of Ordinance No. MC-1597 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2022-2023 to pay annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and 6.Schedule the adoption of Ordinance No. MC-1597 for October 19, 2022. Attachments Attachment 1 - Resolution No. 2022-207, Resolution Calling Election Attachment 2 - Exhibit A - Description of Territory Attachment 3 - Exhibit B - Rate and Method of Apportionment Attachment 4 - Exhibit C - Special Election Ballot Attachment 5 - Resolution No. 2022-208, Resolution Declaring Election Results Attachment 6 - Exhibit A - Certificate of Election Results Attachment 7 - Ordinance No. MC-1597 Attachment 8 - Exhibit A - Description of Services Attachment 9 - Exhibit B - Parcel List Attachment 10 – Signed Petition & Waiver Attachment 11 - PowerPoint Presentation Attachment 12 - Project Map Ward: Sixth Ward   Packet Pg. 528 7 7 5 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. July 20, 2022 -Mayor and City Council adopted Resolution No. 2022-139, 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”. August 17, 2022 -Mayor and City Council adopted Resolution No. 2022-183, amending the Public Hearing Date to October 5, 2022.   Packet Pg. 529 Resolution No. 2022-207 Resolution No. 2022-207 1 of 6 1 0 0 9 RESOLUTION NO. 2022-207 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. 24) 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 July 20, 2022, duly adopted Resolution No. 2022-139 (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 September 7, 2022; and WHEREAS, the Mayor and City Council has cancelled the September 7, 2022, meeting and therefore on August 17, 2022, adopted Resolution No. 2022-183 amending the date of the public hearing to October 5, 2022; and   Packet Pg. 530 Resolution No. 2022-207 Resolution No. 2022-207 2 of 6 1 0 0 9 WHEREAS, the territory proposed to be annexed is identified in a map entitled "Annexation Map No. 24 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on July 26, 2022, in Book 90 of Maps of Assessment and Community Facilities Districts at Page 46, in the office of the San Bernardino County Recorder; and WHEREAS, pursuant to the Act and the Resolution of Intention, a noticed public hearing was convened by the City Council on October 5, 2022, not earlier than the hour of 7:00 p.m. at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410, relative to the proposed annexation of said territory to CFD No. 2019-1. At the hearing, the testimony of all interested persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the October 5, 2022, meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of San Bernardino (www.sbcity.org), and outside of the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410. A copy of the Agenda will be made available upon request to the San Bernardino City Clerk's office at 909-384-5002; and WHEREAS, written protests have not been filed by fifty percent (50%) or more of the registered voters residing within the CFD No 2019-1, or by fifty percent (50%) or more of the registered voters residing within the territory to be annexed, or by the owners of one-half (1/2) or more of the area within the CFD No. 2019-1, or by the owners of one-half (1/2) or more of the territory to be annexed; and WHEREAS, the Mayor and City Council has determined that there are fewer than twelve registered voters residing in the territory proposed to be annexed to the CFD No. 2019-1 and that the qualified electors in such territory are the landowners; and WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to call an election to authorize the annexation of territory to the CFD No. 2019-1 and the levying of a special tax as described in Exhibit A hereto; and WHEREAS, the City Council has received a written instrument from each landowner in the territory proposed to be annexed to the CFD No. 2019-1 consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and WHEREAS, the City Clerk has concurred in the election date set forth herein. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2.Conformation of Finding in Resolution of Intention. The City Council reconfirms all of its findings and determinations as set forth in the Resolution of Intention.   Packet Pg. 531 Resolution No. 2022-207 Resolution No. 2022-207 3 of 6 1 0 0 9 SECTION 3.Findings Regarding Protests. The City Council finds and determines that written protests to the proposed annexation of territory to the CFD No. 2019-1 and the levy of the 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, 92401, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax levies pursuant to Government Code section 53340.2. The Public Works Director may cause these functions to be performed by his or her deputies, assistants, or other designated agents. SECTION 8. Accountability Measures. Pursuant to Section 50075.1 of the California Government Code, the City shall create a separate account into which tax proceeds will be deposited; and the Public Works Director annually shall file a report with the 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 October 5, 2022, 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 July 7, 2022 (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to CFD No. 2019-1), the qualified electors shall be the landowners within territory proposed to be annexed, and each landowner who was the owner of record at the close of the hearing shall have one vote   Packet Pg. 532 Resolution No. 2022-207 Resolution No. 2022-207 4 of 6 1 0 0 9 for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to CFD No. 2019-1. (b) Consolidation of Elections; Combination of Propositions on Ballot. The election on the question of levying the special tax and establishing an appropriations limit for CFD No. 2019-1 shall be consolidated, and the two proportions shall be combined into a single ballot proposition for submission to the voters, as authorized by Government Code Section 53353.5. (c) Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The 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 October 5, 2022. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on the election day by voters. Once all qualified electors have voted, the City Clerk may close the election. (e) Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on October 5, 2022, or when all qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election. (f) Declaration of Results. The City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statement of the results of the special election as ascertained by the canvass of the returns. SECTION 10. Filing of Resolution and Map with City Clerk. The City Council hereby directs the City Clerk to file a copy of this resolution and the annexation map of the boundaries of CFD No. 2019-1 in her office. SECTION 11. The Mayor and City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 12. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 13. Effective Date. This Resolution shall become effective immediately.   Packet Pg. 533 Resolution No. 2022-207 Resolution No. 2022-207 5 of 6 1 0 0 9 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2022. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 534 Resolution No. 2022-207 Resolution No. 2022-207 6 of 6 1 0 0 9 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2022-207, adopted at a regular meeting held on the ___ day of _______ 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2022. Genoveva Rocha, CMC, City Clerk   Packet Pg. 535 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. 24 is currently comprised of one (1) parcel, located within the City boundaries. The property is identified by the following San Bernardino County Assessor's Parcel Number (APN). APN Owner Name 0143-191-59 PI Properties LLC       Packet Pg. 536 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.   Packet Pg. 537 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.      Packet Pg. 538 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.    Packet Pg. 539 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    Packet Pg. 540 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:    Packet Pg. 541 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 obligation  to maintain the Contingent Services, which default shall be deemed to have occurred, as determined by  the Administrator, in each of the following circumstances:    (a) The POA files for bankruptcy;  (b) The POA is dissolved;  (c) The POA ceases to levy annual assessments for the Contingent Services; or  (d) The POA fails to provide the Contingent Services at the same level as the City provides similar  services and maintains similar improvements throughout the City and within ninety (90) days  after written notice from the City, or such longer period permitted by the City Manager, fails  to remedy the deficiency to the reasonable satisfaction of the City Council.    a. Developed Property     (i) Maximum Special Tax B (Contingent)    Packet Pg. 542 City of San Bernardino 7  Community Facilities District No. 2019‐1 (Maintenance Services)    The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is  shown in Table 4 and shall be specific to each Tax Zone within the CFD.  When additional  property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed  property shall reflect the Maximum Special Tax B (Contingent) for each Tax Zones annexed  and included in Appendix A.  The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20  within Tax Zone 1 is identified in Table 4 below:  TABLE 4  MAXIMUM SPECIAL TAX B (CONTINGENT) RATES  DEVELOPED PROPERTY    Tax  Zone  Tract Land Use Category  Taxable  Unit  Maximum Special   Tax B (Contingent)  1 TR 17170 Single Family Residential Property RU $0    (ii) Increase in the Maximum Special Tax B (Contingent)   On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for  Developed Property shall increase by i) the percentage increase in the Consumer Price Index  (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of  the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.    (iii) Multiple Land Use Categories   In some instances an Assessor's Parcel of Developed Property may contain more than one  Land Use Category.  The Maximum Special Tax B (Contingent) that can be levied on an  Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be  levied for each Land Use Category located on that Assessor's Parcel.  For an Assessor's Parcel  that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated  to each type of property based on the amount of Acreage designated for each land use as  determined by reference to the site plan approved for such Assessor's Parcel.  The  Administrator's allocation to each type of property shall be final.    b.  Approved Property  The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown  in Table 5 and shall be specific to each Tax Zone within the CFD.  When additional property is  annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect  the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.   The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20 within the Tax Zone is identified  in Table 5 below:  TABLE 5  MAXIMUM SPECIAL TAX B (CONTINGENT) RATES  APPROVED PROPERTY    Tax  Zone  Tract Land Use Category  Taxable  Unit  Maximum Special   Tax B (Contingent)  1 TR 17170 Single Family Residential Property RU $0    On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Approved  Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for    Packet Pg. 543 City of San Bernardino 8  Community Facilities District No. 2019‐1 (Maintenance Services)   Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding  Fiscal Year, or ii) by two percent (2.0%), whichever is greater.    c.  Undeveloped Property  The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown  in Table 6 and shall be specific to each Tax Zone within the CFD.  When additional property is  annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect  the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.   The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20 within the Tax Zone is identified  in Table 6 below:  TABLE 6  MAXIMUM SPECIAL TAX B (CONTINGENT) RATES  UNDEVELOPED PROPERTY    Tax Zone  Tracts Taxable Unit  Maximum Special   Tax B (Contingent)  1 TR 17170 Acre $0    On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Undeveloped  Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los  Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year,  or ii) by two percent (2.0%), whichever is greater.    D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX  1.  Special Tax A  Commencing with Fiscal Year 2019‐20 and for each following Fiscal Year, the Council shall determine  the Special Tax A Requirement and shall levy the Special Tax A on all Assessor’s Parcels of Taxable  Property until the aggregate amount of Special Tax A equals the Special Tax A Requirement for each  Tax Zone.  The Special Tax A shall be levied for each Fiscal Year as follows:    First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed  Property within each Tax Zone up to 100% of the applicable Maximum Special Tax to satisfy the Special  Tax A Requirement for such Tax Zone;    Second: If additional moneys are needed to satisfy the Special Tax A Requirement for a Tax Zone  after the first step has been completed, the Special Tax A shall be levied Proportionately on each  Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax A for  Approved Property;    Third: If additional monies are needed to satisfy the Special Tax A Requirement for a Tax Zone  after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all  Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum Special  Tax A for Undeveloped Property.  2.  Special Tax B (Contingent)  Commencing with Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for  each following Fiscal Year, the City Council shall determine the Contingent Special Tax B (Contingent)  Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of    Packet Pg. 544 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).      Packet Pg. 545 City of San Bernardino 10  Community Facilities District No. 2019‐1 (Maintenance Services)      I. MANNER OF COLLECTION   The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem  property taxes, provided, however, that CFD No. 2019‐1 may collect the Special Tax at a different time  or in a different manner if necessary to meet its financial obligations.       Packet Pg. 546 City of San Bernardino 11  Community Facilities District No. 2019‐1 (Maintenance Services)   APPENDIX A    CITY OF SAN BERNARDINO  COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES)                  COST ESTIMATE  Special Tax A Services ‐ The estimate breaks down the costs of providing one year's maintenance  services for Fiscal Year 2022‐23.  These services are being funded by the levy of Special Tax A for  Community Facilities District No. 2019‐1.  TAX ZONE 25  TR 20494    Item Description Estimated Cost  1 Lighting $200  2 Streets $1,719  3 Parks $12,220  4 Graffiti $525  5 Reserves $109  6 Admin $1,716  Total  $16,489    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 2022‐23. If necessary, these  services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District  No. 2019‐1 Tax Zone 25.  TAX ZONE 25 (CONTINGENT SERVICES)  TR 20494    Item Description Estimated Cost  1 Drainage  $528  2 Reserves $79  3 Admin $1,000  Total  $1,607    TAX ZONE 25  FY 2022‐23 MAXIMUM SPECIAL TAX RATES  DEVELOPED PROPERTY AND APPROVED PROPERTY     Land Use   Category  Taxable   Unit  Maximum   Special Tax A  Maximum   Special Tax B  Single‐Family Residential RU $174 $17  Multi‐Family Residential RU $174 $17  Non‐Residential Property Acre $2,386 $233    Packet Pg. 547 City of San Bernardino 12  Community Facilities District No. 2019‐1 (Maintenance Services)     TAX ZONE 25  FY 2022‐23 MAXIMUM SPECIAL TAX RATES   UNDEVELOPED PROPERTY    Taxable   Unit  Maximum   Special Tax A  Maximum   Special Tax B  Acre $2,386 $233       Packet Pg. 548 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 $2,913 / Acre $334 / Acre ICO Fund VI, LLC  8 9 LM 2019‐021 2021‐22 $815 / Acre $232 / Acre TR 2600 Cajon Industrial LLC  9 10 TR 20189 2021‐22 $490 / Acre $154 / Acre Central Commerce Center, LLC  10 11 LD 1900086 2021‐22 $1,472 / Acre $0 / Acre Lankershim Industrial, LLC  11 12 TR 20305 2022‐23 $175 / Acre $0 / Acre Prologis, LP  12 13 LLA 2020‐004 2022‐23 $1,169 / Acre $0 / Acre Dreamland Real Estate Holdings  13 14 TR 5907 2022‐23 $2,268 / Acre $0 / Acre Magic Laundry Services, Inc.   14 15 0136‐191‐21 2022‐23 $5,277 / Acre $0 / Acre Ahmad Family Trust  15 16 TR 20216 2022‐23 $7,089 / Acre $0 / Acre Gateway SB, LLC  16 17 TR 20145 2022‐23 $646 / RU $0 / RU RCH‐CWI Belmont, LP  17 18 CUP 20‐07 2022‐23 $7,433 / Acre $0 / Acre George A. Pearson  18 19 TR 20258 2022‐23 $588 / RU $0 / RU RGC Family Trust  19 20 LM 21‐10 2022‐23 $5,284 / Acre $0 / Acre 170 East 40th Street, LLC  20 21 LM 22‐04 2022‐23 $6,397 / Acre $0 / Acre 108 Highland, LP  21 To Be Determined  22 23 TR 4592 2022‐23 $847 / Acre $320 / Acre 1300 E Highland Ave LLC  23 24 LLA 2020‐005 2022‐23 $1,385 / Acre $978 / Acre Vone SB, LLC  24 25 TR 20494 2022‐23 $174 / RU $17 / RU PI Properties, LLC  25 26 TR 20495 2022‐23 $204 / RU $45 / RU Pacific West Company, et al.   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.    Packet Pg. 549 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.                  Packet Pg. 550 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      Packet Pg. 551   Packet Pg. 552   Packet Pg. 553 EXHIBIT C CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 24 (October 5, 2022) This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2019-1 (Maintenance Services) (“CFD No. 2019-1”) of the City of San Bernardino: Name of Landowner Number of Acres Owned Total Votes PI Properties, LLC 10.10 11 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 September 21, 2022, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted. Personal Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on October 5, 2022, at the Clerk’s office at 201 N. “E” Street, Bldg A, City of San Bernardino, CA 92401. However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on October 5, 2022. Very truly yours, Genoveva Rocha, CMC, City Clerk   Packet Pg. 554   TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE. OFFICIAL SPECIAL TAX BALLOT Name & Address of Property Owner: Assessor’s Parcel Number(s): PI Properties, LLC Attn: Rao Yalamanchili 610 n. Santa Anita Ave. Arcadia, CA 91006 0143-191-59 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 July 20, 2022 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 24 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__.        PI Properties, LLC By. Rao Yalamanchili President Signature Print Name Title     Packet Pg. 555 Resolution No. 2022-208 Resolution No. 2022-208 1 of 3 1 0 1 3 RESOLUTION NO. 2022-208 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. 24) 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, the Mayor and City Council adopted a resolution No. 2022-139 holding a public hearing and calling a special election for September 7, 2022; and WHEREAS, the Mayor and City Council has cancelled the September 7, 2022, meeting and therefore on August 17, 2022, adopted Resolution No. 2022-183 amending the date of the public hearing to October 5, 2022; and WHEREAS, at the conclusion of said public hearing, the Mayor and City Council adopted a Resolution No. 2022-___ calling a special election for October 5, 2022, and submitting to the qualified electors of the territory to be annexed to the CFD No. 2019-1 the question of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property as provided in the form of special election ballot; and WHEREAS, a Certificate of Election Results, attached thereto as Exhibit A, dated October 5, 2022, executed by the City Clerk (or, in the absence of the City Clerk, the Acting City Clerk – in either case, the “Clerk”), has been filed with this Council, certifying that a completed ballot has been returned to the Clerk for each landowner-voter(s) eligible to cast a ballot in said special election, with all votes cast as “Yes” votes in favor of the ballot measure, and further certifying on said basis that the special mailed-ballot election was closed; and WHEREAS, this Council has received, reviewed and hereby accepts the Clerk’s Certificate of Election Results and wishes by this resolution to declare the results of the special mailed-ballot election; BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1.The above recitals are true and correct and are incorporated herein by this reference. SECTION 2.Ballot Measure. This Council hereby finds, determines and declares that the ballot measure submitted to the qualified electors of the territory to be annexed to CFD No.   Packet Pg. 556 Resolution No. 2022-208 Resolution No. 2022-208 2 of 3 1 0 1 3 2019-1 has been passed and approved by those qualified electors in accordance with Sections 53328 and 53329 of the Government Code. SECTION 3.Annexation. This Council hereby finds, determines and declares that pursuant to Section 53339.8 of the Government Code, the Mayor and City Council is authorized to determine that the territory to be annexed has been added to and become a part of the CFD No. 2019-1 with full legal effect, and the Mayor and City Council is also authorized, pursuant to said Section 53339.8, to annually levy special taxes within the territory to be annexed to pay the costs of the services to be provided by the CFD No. 2019-1 as specified in Resolution No. 2022-139 adopted by the Mayor and City Council on July 20, 2022. The boundaries of the territory annexed are shown on the map entitled, "Annexation Map No. 24 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on July 26, 2022, in Book 90 of Maps of Assessment and Community Facilities Districts at Page 46, in the office of the San Bernardino County Recorder. SECTION 4.Notice of Special Tax Lien. Pursuant to Section 53339.8 of the Government Code and Section 3117.5 of the Streets and Highways Code, the City Clerk shall cause to be filed with the County Recorder of the County of San Bernardino an amendment of the notice of special tax lien and a map of the amended boundaries of the CFD No. 2019-1 including the annexed territory. SECTION 5. The Mayor and City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 6. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 7. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2022. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk   Packet Pg. 557 Resolution No. 2022-208 Resolution No. 2022-208 3 of 3 1 0 1 3 Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 558 Resolution No. 2022-208 Resolution No. 2022-208 4 of 3 1 0 1 3 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2022-208, adopted at a regular meeting held on the ___ day of _______ 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2022. Genoveva Rocha, CMC, City Clerk   Packet Pg. 559 EXHIBIT A CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 24 CERTIFICATE OF ELECTION RESULTS I, the undersigned, being the City Clerk or the Acting City Clerk, as the case may be, hereby certify: In connection with the special mailed-ballot election called by the City Council (the “City Council”) of the City of San Bernardino (the “City”) on this same date in the proceedings of the City Council for the annexation of territory to the above-entitled community facilities district, I personally received (a) a signed and dated waiver and consent form and (b) a signed, dated and marked election ballot(s) on behalf of the owner(s) listed below, the entity named as the sole landowner of the land within the boundary of the above-entitled community facilities district in the Certificate Regarding Registered Voters and Landowners, dated July 7, 2022, and on file in the office of the City Clerk of the City in connection with the City Council actions on that date. Copies of the completed waiver and consent form and the completed ballot received by me and on file in my office are attached hereto. Following such receipt, I have personally, and in the presence of all persons present, reviewed the ballot to confirm that it is properly marked and signed, and I hereby certify the result of that count to be that the ballot was cast in favor of the measure. Based upon the foregoing, all votes that were cast having been cast “Yes”, in favor of the ballot measure, the measure has therefore passed. Landowner Qualified Landowner Votes Votes Cast YES NO PI Properties, LLC 11 11 I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 2022. Genoveva Rocha, CMC City Clerk City of San Bernardino By: (Attach completed copies of Waiver/Consent and Ballot)   Packet Pg. 560 Ordinance No. MC-1597 1 1 0 1 5 ORDINANCE NO. MC-1597 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING ORDINANCE NO. MC-1522 AND LEVYING SPECIAL TAXES TO BE COLLECTED DURING FISCAL YEAR 2022-2023 TO PAY THE ANNUAL COSTS OF THE MAINTENANCE AND SERVICING OF LANDSCAPING, LIGHTING, WATER QUALITY IMPROVEMENTS, GRAFFITI, STREETS, STREET SWEEPING, PARKS AND TRAIL MAINTENANCE, A RESERVE FUND FOR CAPITAL REPLACEMENT, AND ADMINISTRATIVE EXPENSES WITH RESPECT TO CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) WHEREAS, the Mayor and City Council (the "City Council") of the City of San Bernardino (the "City") has heretofore adopted Resolution No. 2019-81, stating that a community facilities district to be known as "City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services), County of San Bernardino, State of California" (the "Community Facilities District"), is proposed to be established under the provisions of Chapter 2,5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982" (the "Act"), and fixing the time and place for a public hearing on the formation of the Community Facilities District; and WHEREAS, notice was published and mailed to the owners of the property in the Community Facilities District as required by law relative to the intention of the 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 October 5, 2022, at the time and place specified in said published and mailed notice, the City Council opened and held a public hearing as required by law relative to the formation of the Community Facilities District, the levy of the special taxes therein and the provision of services by the Community Facilities District; and WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District, the levy of the special taxes and the provision of services therein were heard, and a full and fair hearing was held; and WHEREAS, subsequent to said hearing, the City Council adopted resolutions entitled "Resolution of the City Council of the City of San Bernardino Establishing Calling An Election for the Purpose of Submitting the Question of the Levy of the Proposed Special Tax to the Qualified Electors of the Proposed Community Facilities District; Authorizing the Levy of Special Taxes; and Establishing the Appropriations Limit for the Proposed Community Facilities District" (the "Resolution of Formation") which resolution established the Community Facilities District, authorized the levy of a special tax within the District, and called an election within the District on   Packet Pg. 561 Ordinance No. MC-1597 2 1 0 1 5 the proposition of levying a special tax, and establishing an appropriations limit within the District; and WHEREAS, an election was held within the Community Facilities District in which the sole eligible landowner elector approved said propositions by more than the two-thirds vote required by the Act. THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1.Findings. It is necessary that the City Council of the City of San Bernardino levy special taxes pursuant to Sections 53340 of the Government Code to provide and finance the costs of certain types of services, and related costs within the Community Facilities District, including (i) the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, and park maintenance, (ii) a reserve fund for capital replacement, and (iii) administrative expenses, all as more completely described in Exhibit "A" to Resolution No. 2019-81, attached hereto and by this reference made a part hereof. SECTION 2.Levy of Special Taxes. Special taxes shall be and are hereby levied for the Fiscal Year 2022-2023, and each Fiscal Year thereafter, on all parcels of real property within the District which are subject to taxation, which are identified in Exhibit "B" attached hereto. Pursuant to said Section 53340, such special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and Lien priority in case of delinquency as is provided for ad valorem taxes. SECTION 3.Transmittal to County. The City Clerk shall immediately following adoption of this ordinance transmit a copy hereof to the Board of Supervisors and the County Auditor of the County of San Bernardino together with a request that the special taxes as levied hereby be collected on the tax bills for the parcels identified in Exhibit "B" hereto, along with the ordinary ad valorem property taxes to be levied on and collected from the owners of said parcels. SECTION 4.Authorization to Publish Ordinance. City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California. SECTION 5.Effective Date. This ordinance shall become effective thirty (30) days after its adoption. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ____ day of _______, 2022. John Valdivia, Mayor City of San Bernardino   Packet Pg. 562 Ordinance No. MC-1597 3 1 0 1 5 Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 563 Ordinance No. MC-1597 4 1 0 1 5 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-1597, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the ____ day of ______, 2022. Ordinance No. MC-1597was approved, passed and adopted at a regular meeting held the ____ day of ______, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of _____, 2022. Genoveva Rocha, CMC, City Clerk   Packet Pg. 564 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.   Packet Pg. 565 EXHIBIT B COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) SPECIAL TAX FISCAL YEAR 2022-23 (Effective as of October 19, 2022) ASSESSOR'S PARCEL NUMBERS Annexation Owner Assessor's Parcel Numbers Original Formation Cauffman Family Trust 4/20/98 0142-811-01 thru -13 and 0142-811-14 Cauffman Family Trust 5/4/11 0142-041-52 1 17329, LLC 0261-031-10, -13, 0261-771-01 thru -29 and 0348-111-52 2 GWS #4 Development, LLC 0141-431-24 3 Devore Storage Facility, LLC 0266-041-39 4 TH Rancho Palma, LLC 0261-761-01 thru -65 and 0261-762-01 thru -72 5 Strata Palma, LLC 0261-182-41 6 San Bernardino Medical Center, LLC 0147-114-20 and -21 7 ICO Fund VI, LLC 0281-441-01 thru -56 and 0281-442-01 thru -55 8 TR 2600 Cajon Industrial LLC 0148-122-04 9 Central Commerce Center, LLC 0280-151-29 10 Lankershim Industrial, LP 1192-311-01 11 Prologis, LP 0137-011-01, -31, 0137-051-27, 0137-052-46, 0274-011-11, -12, - 34, -35, -42, -43 12 Dreamland Real Estate Holdings 0281-061-35 13 Magic Laundry Services, Inc. 0141-282-05 and -06 14 Ahmad Family Trust 0136-191-21 15 Gateway SB, LLC 0134-054-33, -40, -44 16 RCH-CWI Belmont, LP 0261-712-01 thru -16 17 George A. Pearson 0142-212-18 18 RGC Family Trust 0142-325-04 19 170 East 40th Street, LLC 0154-242-22 and -23 20 108 Highland, LP 0150-221-78 21 To Be Determined 22 1300 E Highland Ave LLC 0150-471-04, -05, -06, -07, -08 23 Vone SB, LLC 0272-161-17 and -18 24 PI Properties, LLC 0143-191-59 25 Pacific West Company, Chenmei Cheng, Ann C. Lau, and Hanhsing Li 0285-211-05, -21, -22, -23, -25   Packet Pg. 566 1.The undersigned requests that the City Council of the City of San Bernardino, initiate and conduct proceedings pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”) (Government Code Section 53311 et seq.), to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) (the “Community Facilities District”) of the property described below and consents to the annual levy of special taxes on such property to pay the costs of services to be provided by the community facilities district. 2. The undersigned requests that the community facilities district provide any services that are permitted under the Act including, but not limited to, all necessary service, operations, administration and maintenance required to keep the landscape lighting, street lighting, traffic signals, flood control facilities, ground cover, shrubs, plants and trees, irrigation systems, graffiti removal, sidewalks and masonry walls, fencing entry monuments, tot lot equipment and associated appurtenant facilities within the district in a healthy, vigorous and satisfactory working condition. 3. The undersigned hereby certifies that as of the date indicated opposite its signature, it is the owner of all the property within the proposed boundaries of the Community Facilities District as described in Exhibit A hereto and as shown on the map Exhibit B hereto. 4. The undersigned requests that a special election be held under the Act to authorize the special taxes for the proposed community facilities district. The undersigned waives any requirement for the mailing of the ballot for the special election and expressly agrees that said election may be conducted by mailed or hand-delivered ballot to be returned as quickly as possible to the designated election official, being the office of the City Clerk and the undersigned request that the results of said election be canvassed and reported to the City Council at the same meeting of the City Council as the public hearing on the creation of the Community Facilities District or at the next available meeting. 5. Pursuant to Sections 53326(a) and 53327(b) of the Act, the undersigned expressly waives all applicable waiting periods for the election and waives the requirement for analysis and arguments relating to the special election, and consents to not having such materials provided to the landowner in the ballot packet, and expressly waives any requirements as to the form of the ballot. The undersigned expressly waives all notice requirements relating to hearings and special elections (except for published notices required by the Act), and whether such requirements are found in the California Elections Code, the California Government Code or other laws or procedures, including but not limited to any notice provided for by compliance with the provisions of Section 4101 of the California Elections Code. 6. The undersigned hereby consents to and expressly waives any and all claims based on any irregularity, error, mistake or departure from the provisions of the Act or other laws of the State and any and all laws and requirements incorporated therein, and no step or action in any proceeding relative to annexing territory into Community Facilities District No. 2019-1 of the portion of the incorporated area of the PETITION TO THE CITY COUNCIL OF THE CITY OF SAN BERNARDINO REQUESTING ANNEXING TERRITORY INTO A COMMUNITY FACILITIES DISTRICT NO. 2019-1 OF THE CITY OF SAN BERNARDINO AND A WAIVER WITH RESPECTS TO CERTAIN PROCEDURAL MATTERS UNDER THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 AND CONSENTING TO THE LEVY OF SPECIAL TAXES THEREON TO PAY THE COSTS OF SERVICES TO BE PROVIDED BY THE COMMUNITY FACILITIES DISTRICT   Packet Pg. 567   Packet Pg. 568 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;569   Packet Pg. 570 Public Hearing CFD No. 2019-1 Annexation No. 24: TR 20494 (PI Properties, LLC) Presented by Alex Qishta, City Engineer   Packet Pg. 571 Public Hearing on CFD 2019-1 Annexation No. 24 Recommended Action: 1. CITY COUNCIL INITIATE ANNEXATION OF TERRITORY TO CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ("CFD NO. 2019-1" OR "CFD") BY TAKING THE FOLLOWING ACTIONS: A. HOLD PUBLIC HEARING, B. ADOPT A RESOLUTION CALLING THE ELECTION, C. HOLD A SPECIAL LANDOWNER ELECTION AND CANVASS THE ELECTION, D. ADOPT A RESOLUTION DECLARING RESULTS OF SPECIAL LANDOWNER ELECTION; AND 2. UPON APPROVAL OF THE PRECEDING RESOLUTIONS, INTRODUCE AN ORDINANCE AMENDING ORDINANCE NO. MC-1522 AND LEVYING AND APPORTIONING THE SPECIAL TAX IN CFD NO. 2019-1 (AS IT NOW EXISTS AND WILL EXIST IN THE FUTURE); AND 3. SCHEDULE THE ADOPTION OF THE AMENDED ORDINANCE FOR OCTOBER 19, 2022.   Packet Pg. 572 Public Hearing on CFD 2019-1 Annexation No. 24 Discussion •The Property Owner, PI Properties, 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. 24 includes one parcel, APN 0143-191-59. •On July 20, 2022 the City Council adopted Resolution No. 2022-139, a Resolution of Intention to annex these properties into CFD No. 2019-1 and to hold the Public Hearing on September 7, 2022. •On August 17, 2022 the City Council adopted Resolution No. 2022-183, amending the previous resolution, due to the City Council cancelling the September 7, 2022 meeting; electing to instead hold a Public Hearing on October 5, 2022. The property owner consented to waiving certain time restrictions and conduct the election the same night.   Packet Pg. 573 Public Hearing on CFD 2019-1 Annexation No. 24 Discussion (Cont.) •The proposed maximum annual tax of $174 per unit will be included in CFD No. 2019-1 as Tax Zone 25. •The maximum annual tax is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%.   Packet Pg. 574 Public Hearing on CFD 2019-1 Annexation No. 24 Discussion (Cont.) •The services, which may be funded with proceeds of the special tax include: •All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way •Public lighting including street lights and traffic signals, •Maintenance of streets, including pavement management, and street sweeping, •Maintenance and operation of water quality improvements including storm drainage and flood protection facilities •In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds.   Packet Pg. 575 Project Location   Packet Pg. 576 Public Hearing on CFD 2019-1 Annexation No. 24 Fiscal Impact •It is anticipated that at build-out the total Special Tax revenues to pay for maintenance costs will be approximately $16,489. All costs associated with the annexation is borne by the Developer. There is no fiscal impact to the City’s General Fund.   Packet Pg. 577 Questions?   Packet Pg. 578 20TH ST MEDICAL CENTER DRHIGHLAND AVE ·|}þ210 ^_·|}þ259 ·|}þ18 ·|}þ210 §¨¦215£¤66 £¤66 MIL L ST 16TH ST SPRUCE ST SIERRA WAYWATERMAN AVENINTH ST CAM PUS WAY 2ND S T MAGNOLIA AVE ORANGE SHOW RD 4TH ST RANCHO AVE17 TH S T BASE LINE ST SECOND S T PEPPER AVCFD N O. 2019-1 (MAINTEN ANCE SERVICES)ANNEXATION NO. 24 PROJECT MAP   Packet Pg. 579 8 0 4 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager; Kris Watson, Director of Animal Services Department:Animal Services Subject:Purchase Authorization and Multiple Year Contract with HLP, Inc. for Animal Shelter Software Services Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1.Authorize the City Manager to execute a Professional Services Agreement with HLP Inc., for animal shelter software services from July 1, 2022 through June 30, 2025; and 2. Authorize the Agency Director of Administrative Services to issue a purchase order to HLP Inc., in an amount not to exceed $150,000 over the three-year period of the contract. Background The Animal Services Department has been utilizing HLP, Inc.’s Chameleon Animal Shelter Software since March of 2003. The Chameleon Software system is an all- encompassing animal shelter database, allowing agencies to enter and track animal impounds, veterinary treatment, medication, field activities, dispatch, bite reports, citations, licensing as well as monies received for services. Chameleon is utilized by most animal services departments in Southern California, including San Bernardino County, Riverside County, Orange County, Los Angeles   Packet Pg. 580 8 0 4 County, Ventura County, San Diego County as well as the cities of Los Angeles, Irvine, Burbank, Rancho Cucamonga, San Francisco, Upland and Redlands. The widespread utilization of this software allows us to share reports and data across agencies in the region and nationally at no cost to the Department. Discussion Chameleon Software is used in all aspects of work in the Department. Through the database, staff can track every contact our Department has with an animal and/or their owner. When animals are impounded into our system, their picture and information automatically appear on two websites (www.24petconnect.com and www.petfinder.com) in addition to the City’s website. This allows owners and potential adopters from outside the City to view the animals at the shelter, increasing opportunities for owners to find their lost pets and adoption for those searching for a new pet. The Department contracts with Chameleon to provide the ability for residents to purchase and renew their dog’s licensing online through our website. Additionally, Chameleon registers microchips to new or existing owners on a nightly basis through our database, so that staff no longer needs to rely on owners to complete the microchip registration and mail it to the microchip company. There are currently no comparable products in the shelter software market that allow for the same depth of detail and integration of data and processes that HLP, Inc. offers through Chameleon. Support for the database, including data back-up are provided by HLP, inc. with the contract. The staff at HLP, Inc. are quick to respond to staff inquiries and offer on-line tutorials for their product. This software is crucial to the work we do daily. To further increase our department’s efficiency, we are seeking approval to enter a multiple year contract in lieu of creating a new contract annually. Although the total amount of the quote for a three-year period comes to $127,563.00, we are seeking a not to exceed amount of $150,000.00 to cover any additional WebChameleon licenses needed by the department as well as any potential increase in WebLicensing transactions over the course of the contract. At the end of the contract period, the Department will again evaluate the shelter software market for comparable products. 2021-2025 Strategic Targets and Goals The request for this multiple year contract aligns with Strategic Goal No.1: Improved Operational & Financial Capacity. The ability to establish a contract for a period longer than one fiscal year will improve organizational efficiency and effectiveness Fiscal Impact The funds for the Chameleon software program have been included in the department’s FY 2022/23 operating budget.   Packet Pg. 581 8 0 4 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1.Authorize the City Manager to execute a Professional Services Agreement with HLP Inc., for animal shelter software services from July 1, 2022 through June 30, 2025; and 2. Authorize the Agency Director of Administrative Services to issue a purchase order to HLP Inc., in an amount not to exceed $150,000 over the three-year period of the contract. Attachments Attachment 1 - San Bernardino Professional Software Services Agreement with HLP, 2022-2025 Attachment 2 – Exhibit C – Chameleon Software License Agreement Attachment 3 - HLP Quote 2022-2025 Ward: All Wards Synopsis of Previous Council Actions: March 3, 2021 Purchase of Chameleon’s On-Line Pet Licensing product (Weblicensing) at Mid-year, enabling residents to purchase their pet’s license through the City’s website.   Packet Pg. 582 - 1 - PROFESSIONAL SOFTWARE SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND HLP, INC 1. PARTIES AND DATE. This Agreement is made and entered into this July 1, 2022, by and between the CITY OF SAN BERNARDINO, a charter city and municipal corporation (“City”) and HLP, INC, a CORPORATION with its principal place of business at 9888 W Belleview Ave #110 Littleton, CO 80123 (“Vendor”). Vendor is registered with the State of California and permitted to conduct the types of sales and business services included in this Agreement. City and Vendor are sometimes individually referred to as “Party” and collectively as “Parties.” 2. RECITALS. 2.1 City. City is a public agency of the State of California and is in need of professional software services for the following project: Shelter Software (hereinafter referred to as “the Project”) 2.2 Vendor. Vendor desires to perform and assume responsibility for the provision of certain professional services including, but not limited to, software programming and on-going maintenance services as required by the City on the terms and conditions set forth in this Agreement. Vendor represents that it is experienced in providing Shelter Software projects to public agency clients, is licensed in the State of California, and is familiar with the computing environment of the City. 2.3 Grant of License. Vendor hereby represents and warrants to City that Vendor is the owner of the Application Software, as defined herein, or otherwise has the right to grant to City the rights to use of the Application Software, as set forth in this Agreement and the attached License Agreement. 2.4 Project. City desires to engage Vendor to render such services for the Shelter Software project (“Project”) as set forth in this Agreement. 2.5 Hardware Specifications. The Parties acknowledge and agree that the City has or will be purchasing certain hardware necessary for the proper operation of the System, defined below, in reliance on the recommendations and specifications to be provided by Vendor. 3. DEFINITIONS 3.1 Acceptance. The term Acceptance as used in this Agreement shall refer to a thirty (30) day period following notification by the Vendor that the Application Software or any component or element thereof is ready for use. During this period, the City will   Packet Pg. 583 2 1 1 1 3 test the System and if no Defects are reported, that component or element of the Application Software will be deemed Accepted. If Defects are reported, the Vendor will correct the Defect and a new Acceptance period will begin once the City has been notified by the Vendor. 3.2 Application Software. The term Application Software as used in this Agreement shall refer to the collection of software programs (i.e. executable code) provided to the City by Vendor that will perform the set of functions described in the Exhibit “B”. 3.3 Custom Software. The term Custom Software is computer programs developed under this Agreement that extends the functionality of the Application Software to include features specified or required as part of this Project and under this Agreement not originally part of the Vendor’s baseline or prior version of the Application Software. 3.4 Defect. The term Defect as used in this Agreement shall refer to any error or malfunction in the operation of the System under this Agreement that prevents the City or its agents or employees from using the Application Software to perform the features and functions proposed in Exhibit “A”. 3.5 Delivery. The term Delivery related to software shall mean the transfer and receipt (electronically) of the Application Software to the designated, City approved computing environment. Delivery of professional Services, as used in this Agreement, shall mean that the City’s designated agent under this Agreement has signed off on a given task or work order. 3.6 Final Acceptance. The term Final Acceptance as used in this Agreement shall be used to refer to the thirty (30) day period following the complete Acceptance and operation in productive use of all the components and elements of the System that is free of Defects. If Defects are reported by the City, the Vendor will correct the Defect(s) and notify the City after which a new Final Acceptance period will begin. 3.7 Installation. The term Installation as used in this Agreement shall refer to the loading of executable code necessary for the operation of the Application Software on one of the computing environments designated herein with the Platform Software. 3.8 License Agreement. The term License Agreement as used in this Agreement shall mean the license agreement(s) for the Application Software attached hereto as Exhibit “D”. 3.9 On-going Maintenance and Support Services. The term On-going Maintenance and Support Services as used in this Agreement shall mean those Services required for on-going Application Software maintenance and support. 3.10 Platform Software. The term Platform Software shall mean all of the server and client operating systems, utilities, objects, database software, and any 3rd Party software necessary to operate the Application Software as required by this Agreement.   Packet Pg. 584 3 1 1 1 3 3.11 Project. The term Project as used in this Agreement shall refer to all of the materials, labor and Services required to deliver the System. 3.12 Project Deliverables. The term Products as used in this Agreement shall refer to, collectively, the Application Software, Custom Software, Platform Software, Updates, Source Code and any other products, including intellectual property, provided by Vendor under this Agreement, as more specifically set forth in Exhibit “A”. 3.13 Project Services. The term Project Services as used in this Agreement shall mean those Services to be provided by Vendor in order to complete the Project, through Final Acceptance. 3.14 Services. The term Services as used in this Agreement shall mean, collectively, the Project Services and the On-going Maintenance and Support Services. 3.15 Source Code. The term Source Code as used in this Agreement shall refer to all programming language code, objects, stored procedures, utilities, and compilers necessary to generate executable code for all of the Application Software and Custom Software provided under this Agreement, including all user, technical and system documentation necessary for a reasonable person to understand how to operate all elements of the System. 3.16 System. The term System shall be used in this Agreement to refer to the collection of software, firmware, operating system, database system, hardware and peripherals necessary to operate the Application Software to perform the functions specified in Exhibit “A”. 3.17 Update. The term Update shall be used in this Agreement to refer to any bug fix, patch, enhancement, error correction, revision, performance improvement, new version, added features to or replacement of the Application Software, or any component or element thereof, designed to perform the same functions as the Application Software on any Platform Software or computing environment. 4. TERMS. 4.1 Incorporation of Documents and Recitals; Order of Precedence. The attached exhibits and the recitals set forth above are incorporated into this Agreement by reference as though fully set forth herein. 4.2 Scope of Services and Term. 4.2.1 General Scope of Services. Vendor promises and agrees to furnish to the City all labor (technical consulting, training, programming, etc.), software, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply Chameleon Software Products necessary for the Project. All hardware, platform software, and Crystal Reports software will be provided by City. The Project is more particularly described in Exhibit “A” (Statement of Work) attached hereto   Packet Pg. 585 4 1 1 1 3 and incorporated herein by reference including definitions required for interpreting the services described. The Project shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. 4.2.2 On-Going Maintenance and Support Services. Vendor further promises and agrees to furnish to the City all labor (technical consulting, training, programming, etc.), software, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the On-going Maintenance Services as required hereunder. The On-going Maintenance and Support Services are more particularly described in Exhibit “D” (On-going Maintenance Services Statement of Work) attached hereto and incorporated herein by reference including, if applicable, definitions required for interpreting the services described. The On-going Maintenance and Support Services shall be subject to, and performed in accordance with, the applicable provisions of this Agreement and the attached exhibits, and all applicable local, state and federal laws, rules and regulations. 4.2.3 Term. 4.2.3.1 License Agreement. The term of the License Agreement, including On-going Maintenance and Support Services shall begin on July, 1 2022, and continue through June 30, 2025, as further set forth in the License Agreement. 4.3 Responsibilities of Vendor. 4.3.1 Control and Payment of Subordinates; Independent Contractor. The Project Deliverables and Services shall be provided by Vendor or under its supervision. Vendor will determine the means, methods and details of performing Project subject to the requirements of this Agreement. City retains Vendor on an independent contractor basis and not as an employee. Vendor retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Vendor shall also not be employees of City and shall at all times be under Vendor’s exclusive direction and control. Vendor 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. Vendor 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. 4.3.2 Schedule of Services. Vendor shall perform the Project Services expeditiously within the term of this Agreement. Vendor represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Vendor’s conformance with the foregoing schedules, City shall respond to Vendor’s submittals in a timely manner. 4.3.3 Conformance to Applicable Requirements. All work prepared and Services performed by Vendor shall be subject to the approval of City.   Packet Pg. 586 5 1 1 1 3 4.3.4 Warranty. Vendor warrants that the Application Software shall perform as proposed and represented in Exhibit “A”. In addition, Vendor represents and warrants that, at Final Acceptance, the Application Software shall perform all of the functions specified in Exhibit “A”. 4.3.5 Substitution of Key Personnel. Vendor has represented to City that qualified personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Vendor may substitute other personnel of at least equal competence. As discussed below, any personnel 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 Vendor at the request of the City. 4.3.6 Coordination of Services. Vendor agrees to work closely with City staff in the performance of Services and shall be available to City’s staff, Vendors and other staff at all reasonable times. 4.3.7 Standard of Care; Performance of Employees. Vendor shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Vendor represents and maintains that it is skilled in the professional calling necessary to perform the Services. Vendor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Vendor represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, 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, Vendor 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 Vendor’s failure to comply with the standard of care provided for herein. Any employee of the Vendor or its sub-Vendors 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 who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project or from the provision of On-Going Maintenance and Support Services by the Vendor and shall not be re-employed to perform any of the Services or to work on the Project. 4.3.8 Regulatory Compliance. Vendor shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project and the On-Going Maintenance and Support Services, including all federal and state requirements, and shall give all notices required by law. Any and all Application Software provided under this Agreement shall be compliance with all relevant federal and state laws and regulations including, but not limited to IRS, Social Security, Federal Trade Commission, Homeland Security, California   Packet Pg. 587 6 1 1 1 3 Public Employees Retirement System (CalPERS), and California Franchise Tax Board. Vendor shall be liable for all violations of such laws and regulations in connection with delivery of Products and Services under this Agreement. If the Vendor performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, Vendor shall be solely responsible for all costs arising therefrom. Vendor shall defend, indemnify and hold City, its officials, directors, 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. 4.3.9 Additional Provisions Related to On-going Maintenance and Support Services. 4.3.9.1 Defect Remediation. Vendor shall correct any reported Defects in a timely manner. Defects that result in the City’s inability to conduct its normal business operations may incur financial penalties as further described below. 4.3.9.2 Penalties. If Vendor cannot resolve the problem of a reported Defect within 48 hours, and the defect is exclusively within the Vendor provided Application Software, the Vendor shall pay the City $500 per day (24 hours) until the Defect is remedied and the City is able to resume its normal business operations. 4.3.9.3 Updates/Platform Protection. Vendor expressly agrees that the continuous payment for On-going Maintenance and Support Services hereunder shall entitle the City to all Updates released by Vendor (or the Application Software manufacturer), at no additional cost to the City, regardless of the operating system or database platform on which the Updates operate. Vendor shall, on a quarterly basis, make the City aware of any available Updates. Updates shall be installed only after completion, to City’s satisfaction, of reasonable testing in a City test environment. The City shall only be responsible for data conversion and/or training costs associated with the Update, which shall be at the Vendor’s then current standard rates charged to similar customers for similar services, and as shall be agreed upon in writing, in advance by the Parties. 4.4 Party Representatives. 4.4.1 City’s Representative. The City hereby designates Kristine Watson, 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. Vendor shall not accept direction or orders from any person other than the City’s Representative or his or her designee. 4.4.2 Vendor’s Representative. Vendor hereby designates Keith Brakey, or his or her designee, to act as its representative for the performance of this Agreement (“Vendor’s Representative”). Vendor’s Representative shall have full authority to represent and act on behalf of the Vendor for all purposes under this Agreement. The Vendor’s Representative shall supervise and direct the Services, using   Packet Pg. 588 7 1 1 1 3 his best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement. 4.5 Insurance. 4.5.1.1 Time for Compliance. Vendor shall not commence the Project under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Vendor shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section. 4.5.1.2 Additional Insured. The City of San Bernardino, its officials, officers, employees, agents, and volunteers shall be named as additional insureds on Vendor’s and its subvendors’ policies of commercial general liability and automobile liability insurance using the endorsements and forms specified herein or exact equivalents. 4.5.1.3 Commercial General Liability (A) The Vendor 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. (C) Commercial General Liability Insurance must include coverage for the following: (a) Bodily Injury and Property Damage (b) Personal Injury/Advertising Injury (c) Premises/Operations Liability (d) Products/Completed Operations Liability (e) Aggregate Limits that Apply per Project (f) Explosion, Collapse and Underground (UCX) exclusion deleted (g) Contractual Liability with respect to this Contract   Packet Pg. 589 8 1 1 1 3 (h) Broad Form Property Damage (i) Independent Vendors Coverage (D) 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. (E) The policy shall give City, its elected and appointed officials, officers, employees, agents, and City-designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. (F) 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. 4.5.1.4 Automobile Liability. (A) At all times during the performance of the work under this Agreement, the Vendor 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, its elected and appointed officials, 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. 4.5.1.5 Workers’ Compensation/Employer’s Liability. (A) Vendor 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 Vendor has employees at any time during the term of this Agreement, at all times during the performance of the work under   Packet Pg. 590 9 1 1 1 3 this Agreement, the Vendor 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. Vendor shall require all subvendors 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. 4.5.1.6 Professional Liability (Errors and Omissions). At all times during the performance of the work under this Agreement the Vendor 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 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 Vendor. “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. 4.5.1.7 Privacy/Network Security (Cyber). At all times during the performance of work under this Agreement, the Designer shall maintain privacy/network security insurance, in a form and with insurance companies acceptable to the City, for: (1) privacy breaches, (2) system breaches, (3) denial or loss of service, and (4) the introduction, implantation or spread of malicious software code. 4.5.1.8 Minimum Policy Limits Required. (A) The following insurance limits are required for the Agreement: Combined Single Limit Commercial General Liability $2,000,000 per occurrence/$4,000,000 aggregate for bodily injury, personal injury, and property damage Automobile Liability $1,000,000 per occurrence for bodily injury and property damage Employer’s Liability $1,000,000 per occurrence Professional Liability $2,000,000 per claim and aggregate (errors and omissions) Cyber Liability $1,000,000 per occurrence limit   Packet Pg. 591 10 1 1 1 3 (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. 4.5.1.9 Evidence Required. Prior to execution of the Agreement, the Vendor 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. 4.5.1.10 Policy Provisions Required. (A) Vendor shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Vendor shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of the premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Vendor shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. (B) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Vendor’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. Vendor shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Vendor 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 provide waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Vendor or others providing insurance evidence in compliance   Packet Pg. 592 11 1 1 1 3 with these specifications to waive their right of recovery prior to a loss. Vendor hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subvendors. (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 Vendor from liability in excess of such coverage, nor shall it limit the Vendor’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. 4.5.1.11 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. 4.5.1.12 Additional Insurance Provisions. (A) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Vendor, 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 Vendor 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 necessary and any premium paid by City will be promptly reimbursed by Vendor or City will withhold amounts sufficient to pay premium from Vendor payments. In the alternative, City may cancel this Agreement. (C) The City may require the Vendor 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. 4.5.1.13 Subvendor Insurance Requirements. Vendor shall not allow any subcontractors or subvendors to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance   Packet Pg. 593 12 1 1 1 3 required under this section. Policies of commercial general liability insurance provided by such subcontractors or subvendors 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 Vendor, City may approve different scopes or minimum limits of insurance for particular subcontractors or subvendors. 4.5.2 Safety. Vendor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Vendor 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 employees appropriate to the nature of the work and the conditions under which the work is to be performed. 4.6 Responsibilities of City. 4.6.1 City Support of Vendor. City shall furnish to the Vendor priority access to the System for the period of time reasonably required by the Vendor for Installation, testing, training, diagnostics, etc. City shall provide the following resources for Vendor's use in fulfillment of this Agreement: (a) City personnel upon reasonable request of Vendor to answer questions and advise Vendor on City's facilities, operations and requirements. (b) Input data in accordance with the agreed upon test and Acceptance procedures for use by the Vendor in Acceptance Testing. (c) Conversion format and procedures that the Vendor shall complete at its expense. (d) Upon completion of Installation and preliminary training, and following Final Acceptance, City shall be responsible for the operation and management of the System, exclusive of On- going Maintenance and Support Services, which shall be the responsibility of Vendor. 4.7 Fees and Payments. 4.7.1 Compensation for Project Services. The Parties agree that the payment schedule is a performance based payment schedule. Vendor shall receive compensation, including authorized reimbursements, for all Project Services and License Agreements rendered under this Agreement at the rates and in accordance with the compensation schedule set forth in Exhibit “B” attached hereto and incorporated herein   Packet Pg. 594 13 1 1 1 3 by reference. The total compensation for Project Services shall not exceed Forty- Thousand Dollars ($40,000.00) without written approval of City’s Representative. 4.7.2 Compensation for On-going Maintenance and Support Services. Vendor shall receive compensation, including authorized reimbursements, for all On- going Maintenance and Support Services rendered under this Agreement at the rates set forth in Exhibit “B”. 4.7.3 Process for Payment of Compensation; Itemized Statements. Vendor shall submit to City an itemized statement which indicates work completed by Vendor. The statement shall describe the nature and amount of Services provided; and shall clearly reflect charges against the items described in the Exhibit “B” since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. Statements not in conformance with the foregoing, or statements containing questions or ambiguities, shall be returned to the Vendor for correction. City shall, within thirty (30) days of receiving a statement in conformance with the requirements contained herein, review the statement and process for payment all approved and undisputed charges thereon. 4.7.4 Partial Delivery. In the event that the Vendor fails to deliver all of the Application Software elements and Services included in the Project Deliverables, the City, at its sole option, may determine the value of the missing elements and withhold that amount from any payment due to Vendor. Alternatively, or in addition, as required to cover the value of the missing elements, Vendor shall submit to the City a cashier’s check for said amount and present it to the City, to be held as a “Project Bond” until the missing elements have been satisfactorily delivered and Accepted. Upon Acceptance of the missing elements, the City shall return the cashier’s check along with any withheld payment amounts, as applicable. If the Vendor fails to satisfactorily deliver the missing elements, the City may cash the cashier’s check and use the withheld monies to complete the outstanding deliverables with its own forces, or through any other available vendor or consultant. 4.7.5 Reimbursement for Expenses. Vendor shall not be reimbursed for any expenses unless included in Exhibit “B”, or authorized in writing and in advance by City. 4.7.6 Modification of Scope. The City may, at any time, request a modification to the Project, or the Statement of Work for the Project Services or the On- going Maintenance and Support Services by submitting written notice to Vendor specifying the desired modifications. Vendor shall provide a written quote for the increased, changed or decreased Services within five (5) working days of receipt of City’s written request. Vendor shall suspend any Services following receipt of the City’s written request until final written agreement is reached on the requested modification. The Parties shall then negotiate in good faith any increased or decreased charges related to the requested modification. No request for modification shall be effective until a final agreement between the Parties has been reached, and either a written amendment to   Packet Pg. 595 14 1 1 1 3 this Agreement, or a change order is executed by both Parties. No oral request for modification of Services shall be binding on either Party. 4.7.7 Discounts. Vendor shall identify applicable discounts and discount time periods from published list prices for any future Application Software or additional copies of purchased Application Software. Should any discounts be announced that would normally apply to the City following the initial submission of the response, but before the Agreement is signed, the City reserves the right to take the lesser of the proposed prices or the discounted price. 4.8 Accounting Records. 4.8.1 Maintenance and Inspection. Vendor shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Vendor 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. Vendor shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 4.9 General Provisions. 4.9.1 Termination of Agreement. 4.9.1.1 Grounds for Termination. City may, by written notice to Vendor, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Vendor of such termination, and specifying the effective date thereof, at least fifteen (15) days before the effective date of such termination. Upon termination, Vendor shall be compensated only for those Services which have been adequately rendered to City, and Vendor shall be entitled to no further compensation. 4.9.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Vendor to provide all finished or unfinished Documents & Data, as defined herein, and other information of any kind prepared by Vendor in connection with the performance of Services under this Agreement. Vendor shall be required to provide such documents and other information within fifteen (15) days of the request. 4.9.1.3 Additional Services. 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. 4.9.2 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:   Packet Pg. 596 15 1 1 1 3 City City of San Bernardino Animal Services Department Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: Kristine Watson Director of Animal Services Vendor HLP, INC Chameleon Software Products 9888 West Belleview Ave. #110 Littleton, CO 80123 Attn: Keith Brakey 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. 4.9.3 Ownership of Materials and Confidentiality. 4.9.3.1 Documents & Data; Licensing of Intellectual Property. Excluding materials and data already owned by the Vendor prior to this Agreement, this Agreement creates a non-exclusive, irrevocable, and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, software programming, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on digital media, including, without limitation, any Computer Aided Design and Drafting (“CADD”) data, which are prepared or caused to be prepared by Vendor under this Agreement (“Documents & Data”). Vendor shall require all subcontractors to agree in writing that City is granted a non-exclusive, irrevocable, and perpetual license for any Documents & Data, and Custom Software solutions the subcontractor prepares under this Agreement. Vendor represents and warrants that Vendor has the legal right to license any and all Documents & Data. Vendor makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Vendor or provided to Vendor by the City. City shall not be limited in any way in its use of the Documents & Data or Custom Software at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk. Any CADD data delivered to City shall not include the professional stamp or signature of an engineer, architect, or any other licensed professional, but shall be followed with a hard copy with such stamp or signature. 4.9.3.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Vendor in connection with the performance of this Agreement shall be held confidential by Vendor. Such materials shall not, without the prior written consent of City, be used by Vendor for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the   Packet Pg. 597 16 1 1 1 3 Services or the Project. Nothing furnished to Vendor which is otherwise known to Vendor or is generally known, or has become known, to the related industry shall be deemed confidential. Vendor 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 prior written consent of City. 4.9.3.3 Intellectual Property Indemnification. Vendor shall defend, indemnify, and hold harmless City, officials, officers, employees, volunteers and agents against any and all claims against City based upon allegations that Vendor has wrongfully utilized Intellectual Property of others in performing work pursuant to this Agreement or that City has wrongfully used Intellectual Property developed by Vendor pursuant to this Agreement. 4.9.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement. 4.9.5 Attorney’s Fees. If either Party commences an action against the other Party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney’s fees and all other costs of such action. 4.9.6 Indemnification. To the extent permitted by law, Vendor shall defend, 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, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any negligent acts or omissions or willful misconduct of Vendor, its officials, officers, employees, agents, Vendors and contractors arising out of or in connection with the performance of the Services, the Project or this Agreement, including without limitation the payment of all damages and attorneys’ fees and other related costs and expenses. Vendor shall defend, at Vendor’s own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against City, its directors, officials, officers, employees, agents or volunteers. Vendor shall pay and satisfy any such judgment, award or decree that may be rendered against City or its directors, officials, officers, employees, agents or volunteers, in any such suit, action or other legal proceeding. Vendor shall reimburse City and its directors, officials, officers, employees, agents and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Vendor’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its directors, officials, officers, employees, agents or volunteers 4.9.7 Entire Agreement. This Agreement contains the entire Agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both Parties. If there are any conflicts in language in referenced   Packet Pg. 598 17 1 1 1 3 or related agreements, the language in this Agreement shall prevail. Exhibits to this Agreement will include (if not provided for in the main Agreement) the following: Exhibit A – Statement of Work Exhibit B – Pricing Schedule Exhibit C – Software License Agreement(s) Exhibit D – Scope of Ongoing Maintenance 4.9.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in San Bernardino County. 4.9.9 Time of Essence. Time is of the essence for each and every provision of this Agreement. 4.9.10 City’s Right to Employ Other Vendors. City reserves the right to employ other Vendors in connection with this Project. 4.9.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the Parties. 4.9.12 Assignment or Transfer. Vendor shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. 4.9.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Vendor include all personnel, employees, agents, and subcontractors of Vendor, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. 4.9.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 4.9.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.   Packet Pg. 599 18 1 1 1 3 4.9.16 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. 4.9.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 4.9.18 Prohibited Interests. Vendor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide agent of the Vendor, to solicit or secure this Agreement. Further, Vendor 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 Vendor, 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. For the term of this Agreement, no member, 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. 4.9.19 Equal Opportunity Employment. Vendor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. 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. 4.9.20 Authority to Enter Agreement. Vendor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party. 4.9.21 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 4.10 Subcontracting. 4.10.1 Prior Approval Required. Vendor shall not subcontract any portion of the work 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 all provisions stipulated in this Agreement. 4.11 Electronic Signature. Each Party acknowledges and agrees that this Agreement may be executed by electronic or digital signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature.   Packet Pg. 600 19 1 1 1 3 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND HLP, INC IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first written above. CITY CITY OF SAN BERNARDINO APPROVED BY: Robert D. Field City Manager ATTESTED BY: Genoveva Rocha, CMC City Clerk APPROVED AS TO FORM: Best Best & Krieger LLP City Attorney VENDOR HLP, INC Signature Name Title   Packet Pg. 601 20 EXHIBIT “A” STATEMENT OF WORK Chameleon/CMS is an integrated Shelter Case Management System to record all activities associated with Animal Services, including: shelter management, licensing, field operations, cashiering, and veterinary record-keeping. Included with CMS are industry-leading mapping, barcoding, and automation tools. Behind the technology is a staff with extensive combined experience in technology and animal shelter operations eager to assist you. Chameleon/CMS manages and tracks: People - Staff & Volunteers - Veterinarians - Rescue groups - Complete History - Training - Profiles - Adoption Interviews Animals - Permanent Record - Photos - Behavior Profiles - Complete History - National pet website - Auto upload to multiple animal search websites Kennel - Intake & Outcome - Lost & Found - Narrative memos - Visual Kennel management - Robust search capabilities License - Individual or batch entry - Monthly / Yearly - Differential pricing - Quick record look up - Vaccinations - Simple renewal process Field - Calls for service - Citations - Bite reporting - Field staff dispatching - Shift control and tracking - Laptop implementation - Case photos Clinic - Medical history - Treatments - Medications - Spay/neuter - Barcode tasks - Disease tracking Donor - Solicitation - Campaign management - Contact tracking - Notices & donation acknowledgement Finance - Fee calculation & payment receipting - Debt tracking - Refund processing - Cash drawer tracking - Inventory tracking - Transaction audit history Reports - 40+ included, hundreds more available - Ad hoc options - Automated statistics - Charts & graphs - Notices   Packet Pg. 602 21 Automatic Email - Send alerts on data errors - License renewals - Rescues with animals available for rescue Additional Features - Mapping - Security controls - Error checking Scanning - Change statuses - Outcoming animals - Enter regular treatment records - Barcode kennel inventory Chameleon/CMS runs on any Microsoft Windows operating system supporting SQL Server 2012 or higher. Chameleon/CMS Includes: Chameleon Mailbox Chameleon Mapping PetHarbor and PetHarbor Mobile PostMaster QuickKennel WebLicensing WebLicensing allows patrons to securely purchase new or renew existing animal licenses on-line with a guided process to minimize errors that require follow-up by City staff. The service is configured to incorporate the City of San Bernardino’s licensing rules with all funds from license sales deposited directly into your bank. Also included is WebDonation, which allows patrons to make donations as part of the licensing process or as a standalone contribution to one or more funds. All of the data is then integrated seamlessly and effortlessly back into your Chameleon/CMS shelter management software. VetImport / Image Entry These companion services get records from local veterinarians integrated with the rest of the City’s licensing data in Chameleon/CMS allowing the City to leverage the information for better program compliance and increased revenue for the Department. VetImport automatically turns information on rabies vaccinations from local veterinarians into Chameleon/CMS records. For outside parties that are still sending you paper forms, Image Entry allows the department to batch scan and send to HLP for data entry and billing.   Packet Pg. 603 22 EXHIBIT “B” PRICING SCHEDULE DESCRIPTION PRICING Chameleon/CMS Software Annual Support & Maintenance *Licensed for a 1 Single Server & 17 Workstations. ChamCam imaging included with any licensed Chameleon workstation $17,280.00 Chameleon/CMS Query Only Workstations *Licensed for 2 workstations $320.00 Required annual Web Licensing/Web Donation service fee $3,840.00 Estimated Web Licensing Transactions 6,000 @ $0.35 each $2,100.00 Annual Service Fee for Vet Import $1,920.00 Estimated Vet Import/Image Entry Transactions 5,000 @ 0.79 each $3,950.00 WebChameleon Software Annual Support & Maintenance – Server $2,880.00 Webchameleon Software Annual Support & Maintenance – 6 Concurrent Users $5,760.00 WebChameleon WebRescue Initial Setup Fee 3,000.00 WebChameleon WebRescue Software Annual Support & Maintenance $1,000.00   Packet Pg. 604 23   Packet Pg. 605 24 EXHIBIT “C” SOFTWARE LICENSE AGREEMENTS [ATTACHED]   Packet Pg. 606 25 EXHIBIT “D” SCOPE OF ONGOING-MAINTENANCE HLP agrees to provide the following maintenance services: * NEW VERSIONS: New Versions are major changes to the look or feel of CMS. All new versions are included and guaranteed to all Purchasers. * UPGRADES: As requests for improvements are accumulated from more than one Purchaser, they will be incorporated into periodic upgrades. These upgrades are included and guaranteed to all Purchasers. * DIAGNOSIS: Technical personnel will diagnose the cause of system problems and refer the Purchaser to the appropriate avenue of correction. HLP shall correct the problem only if the cause is a bug in CMS. * CORRECTIONS: Corrections in CMS code will be available to all Purchasers through the technical support office. Corrections will be made as soon as possible after reported and prioritized as to urgency to CMS operations.   Packet Pg. 607 1 1 1 7 CHAMELEON / CMS SOFTWARE LICENSE AGREEMENT This is a legal and binding agreement between the Purchaser and HLP, INC. ("HLP"). The request of the Purchaser for the Chameleon / CMS Software Package ("CMS") and License, and the acceptance of payment for such by HLP, is an acceptance of these terms and conditions. I. GRANT OF LICENSE and USE : HLP shall grant Purchaser this License for use of CMS at the time of payment. HLP grants no software licenses whatsoever, either explicitly or implicitly, except by full payment for the CMS Software. This license entitles the Purchaser the right to install CMS on a single Server unit to be used by any number of Client Workstations. Additional Servers require additional Licenses, except as stated under Terms and Restrictions. This License Agreement is with the designated Purchaser only. This Purchaser may not rent, lease, give, sell or in any way transmit any part of the CMS Software Package to an unauthorized, unlicensed entity. This is a non-exclusive, non-transferable license to the use of CMS. II. PAYMENT : * Payment for CMS is defined as two parts: 1) Cost of initial License and 2) Support and Maintenance. * The “Cost of initial License” is currently fixed at a published price and is a one time fee. * The “Support and Maintenance” cost is figured by the size of the Purchaser’s network, and this fee is billed monthly, quarterly, or annually. The formula is a fixed amount for the Server plus a fixed amount for each client workstation that uses CMS for daily operations. The amount changes as the numbers of workstations change unless the Purchaser is paying for “unlimited” users. Annual increases in this fixed, published amount are limited to the “cost of living index”. * All of the above payment conditions must be met within 30 days of Invoice date in order for the Purchaser to hold a current, valid CMS License. III. OWNERSHIP : * Title to CMS shall remain with HLP. The CMS product name, software, documentation, and other material parts of the CMS package are owned by HLP and may not be reproduced in any form, except as stated under Terms and Restrictions. CMS Software contains the proprietary technology of HLP, INC. * All modifications, additions, upgrades, and new versions provided for under Support and Maintenance are considered part of this title and subject to the conditions of this License. * Purchaser hereby acknowledges HLP's copyright of CMS regardless of whether the copyright notice appears on CMS or whether it has been filed with the United States Copyright Office. IV. TERMS and RESTRICTIONS : * The Purchaser shall receive an executable copy of CMS Software. The Purchaser may load, copy, or transmit CMS, in whole or in part, only as is necessary for execution, backup, and hot standby. * Purchaser may modify or merge CMS solely for execution by itself. Any part of this Software included in such adaptations will continue to be subject to this License. * HLP shall bill the Purchaser a Support & Maintenance FEE periodically using the formula under “Payment”. This bill is due and payable within thirty days of receipt. * HLP reserves the right to revoke this License if the Support & Maintenance FEE becomes delinquent and is not remedied 30 days after notification in writing. The Purchaser shall then cease use of CMS. * Purchaser agrees not to reverse engineer, decompile, or disassemble CMS. V. MAINTENANCE : HLP agrees to provide the following maintenance services: * NEW VERSIONS: New Versions are major changes to the look or feel of CMS. All new versions are included and guaranteed to all Purchasers. * UPGRADES: As requests for improvements are accumulated from more than one Purchaser, they will be incorporated into periodic upgrades. These upgrades are included and guaranteed to all Purchasers. * DIAGNOSIS: Technical personnel will diagnose the cause of system problems and refer the Purchaser to the appropriate avenue of correction. HLP shall correct the problem only if the cause is a bug in CMS. * CORRECTIONS: Corrections in CMS code will be available to all Purchasers through the technical   Packet Pg. 608 1 1 1 7 support office. Corrections will be made as soon as possible after reported and prioritized as to urgency to CMS operations.   Packet Pg. 609 1 1 1 7 VI. SUPPORT : HLP agrees to provide the following support services: * TECHNICAL SUPPORT LINE: This shall entitle the Purchaser faster access to a technical support person for questions of high priority. Calls are answered during business days and hours and referred to the appropriate staff person. Requests may be faxed or left on the message service when lines are busy or after hours. Evenings, weekends, and holidays are available by pre-arrangement. * SYSTEM to SYSTEM: When requested, HLP can provide the Purchaser direct support via modem and communication software in real time. * SYSTEM ON-LINE HELP: CMS contains comprehensive, context-sensitive, and hyper-texted HELP files that are installed with the software and upgraded as needed. * INTERNET WEB SITE: An internet site is available 24 hours and 7 days to registered Users. Questions, suggestions, and comments may be posted to other Users or the HLP staff. Data can be uploaded and down loaded, all through a local access call. * PERSONNEL ON-SITE: If, for any reason, HLP cannot resolve the Purchaser's request by the means of support listed above, and HLP deems the request critical, then HLP staff may visit the Purchaser's site to resolve the problem. VII. SOURCE CODE ESCROW: * This License does not include or cover access in any way to the CMS Source Code. * HLP has placed in escrow all current Source Code for CMS with an authorized escrow Agent. * The Purchaser shall be entitled to claim a copy of the CMS Source Code under the terms and conditions set forth in the Chameleon/CMS Source Code Escrow Agreement. VIII. LIMITED WARRANTY: * HLP is the owner of CMS and has the right to grant the Purchaser this license to use the same without violating any rights of any third party, and there is currently no actual or threatened suit by any such third party based on the alleged violation of such right by HLP. * HLP warrants that CMS will perform substantially in accordance with it's intended use. * If CMS does not perform as represented and cannot be remedied within a reasonable time, HLP will refund the initial cost of this License only. * HLP does not warrant performance of CMS if it is modified by persons other than the staff of HLP. * HLP does not warrant that the execution of CMS will be uninterrupted or error free. * HLP does not warrant that other software programs or computer hardware will not interfere with it’s execution. * HLP disclaims all other warranties, either expressed or implied. IX. LIABILITY: Under this agreement, HLP shall not be liable for any damages resulting from loss of data or use, lost profits or revenue, or any incidental or consequential damages. X. TERMINATION: HLP may terminate any License granted if Purchaser fails to observe this agreement, and such condition is not remedied within thirty days after written notice has been given Purchaser. Purchaser will then destroy all copies and adaptations of all versions of CMS and certify in writing that such has been done. COPYRIGHTED AND NON NEGOTIABLE 10/99   Packet Pg. 610 1 1 1 7 Chameleon / Public Access Software License Agreement This is a legal and binding agreement between the Purchaser and HLP, INC.("HLP"). The request of the Purchaser for the Chameleon / PUBLIC ACCESS Software Package ("PUBLIC ACCESS") and License, and the acceptance of payment for such by HLP, is an acceptance of these terms and conditions. The PUBLIC ACCESS package is composed of ChamCam, Knowledge Rocket, Image Engine, WebChameleon, PaWWW, PetLink, the integrated hardware, and their media products. I. GRANT OF LICENSE and USE : HLP shall grant Purchaser this License for use of PUBLIC ACCESS at the time of payment. HLP grants no software licenses whatsoever, either explicitly or implicitly, except by full payment for the PUBLIC ACCESS Software. This license entitles the Purchaser the right to install PUBLIC ACCESS on a single Server unit to be used by any number of Client Workstations. Additional Clients require additional Licenses, except as stated under Terms and Restrictions. This License Agreement is with the designated Purchaser only. This Purchaser may not rent, lease, give, sell or in any way transmit any part of the PUBLIC ACCESS Software Package, or media products of this software, to an unauthorized, unlicensed entity. This is a limited, non-exclusive, nontransferable license to the use of PUBLIC ACCESS. II. PAYMENT : * Payment for PUBLIC ACCESS is defined as two parts: 1) Cost of initial License and 2) Support and Maintenance. * The “Cost of initial License” is currently fixed at a published price and is a one time fee. * The “Support and Maintenance” cost is figured by the size of the Purchaser’s network, and this fee is billed monthly, quarterly, or annually. Each client workstation that uses PUBLIC ACCESS for daily operations pays the fixed fee. The total amount changes as the numbers of workstations change unless the Purchaser is paying for “unlimited” users. Annual increases in this fixed, published amount are limited to the “cost of living index”. * All of the above payment conditions must be met witin 30 days of Invoice date in order for the Purchaser to hold a current, valid PUBLIC ACCESS License. III. OWNERSHIP : * Title to PUBLIC ACCESS, and the media products from it, shall remain with HLP. The PUBLIC ACCESS product name, software, documentation, media products, and other material parts of the PUBLIC ACCESS package are owned by HLP and may not be reproduced in any form, except as stated under Terms and Restrictions. PUBLIC ACCESS Software, and its media products, contains the proprietary technology of HLP, INC. * All modifications, additions, upgrades, and new versions provided for under Support and Maintenance are considered part of this title and subject to the conditions of this License. * Purchaser hereby acknowledges HLP's copyright of PUBLIC ACCESS regardless of whether the copyright notice appears on PUBLIC ACCESS or whether it has been filed with the United States Copyright Office. IV. TERMS and RESTRICTIONS : * The Purchaser shall receive a executable copy of PUBLIC ACCESS Software and integrated hardware. The Purchaser may load, copy, or transmit PUBLIC ACCESS, or its media products, in whole or in part, only as is necessary for execution, backup, and hot standby. * Purchaser may modify or merge PUBLIC ACCESS solely for execution by itself. Any part of this Software included in such adaptations will continue to be subject to this License. * Purchaser agrees to maintain necessary internet links to allow for a consolidated search of shelter data. * HLP agrees to maintain a neutral, commercial free internet site for the sole purpose of achieving a consolidated search. All ‘hits’ are immediately linked to the local Shelter home page. * Images and data extracts created by PUBLIC ACCESS are intended for use by the Purchaser only. Transfer or sale of PUBLIC ACCESS images by the PURCHASER to other non-licenses entities for commercial purposes is forbidden. * HLP shall bill the Purchaser a Support & Maintenance FEE periodically using the formula under “Payment”. This bill is due and payable within thirty days of receipt. * HLP reserves the right to revoke this License if the Support & Maintenance FEE becomes delinquent and is not remedied 30 days after notification in writing. The Purchaser shall then cease use of PUBLIC ACCESS. * Purchaser agrees not to reverse engineer, decompile, or disassemble PUBLIC ACCESS. * Purchaser agrees to protect HLP proprietary information. Information, including, but not limited to, all database schema, procedures, techniques, sounds, and images, may only be used by authorized, licensed entity.   Packet Pg. 611 1 1 1 7 V. MAINTENANCE : HLP agrees to provide the following maintenance services: * NEW VERSIONS: New Versions are major changes to the look or feel of PUBLIC ACCESS. All new versions are included and guaranteed to all Purchasers. * UPGRADES: As requests for improvements are accumulated from more than one Purchaser, they will be incorporated into periodic upgrades. These upgrades are included and guaranteed to all Purchasers. * DIAGNOSIS: Technical personnel will diagnose the cause of system problems and refer the Purchaser to the appropriate avenue of correction. HLP shall correct the problem only if the cause is a bug in PUBLIC ACCESS. * CORRECTIONS: Corrections in PUBLIC ACCESS code will be available to all Purchasers through the technical support office. Corrections will be made as soon as possible after reported and prioritized as to urgency to PUBLIC ACCESS operations. VI. SUPPORT : HLP agrees to provide the following support services: * TECHNICAL SUPPORT LINE: This shall entitle the Purchaser faster access to a technical support person for questions of high priority. Calls are answered during business days and hours and referred to the appropriate staff person. Requests may be faxed or left on the message service when lines are busy or after hours. Evenings, weekends, and holidays are available by pre-arrangement. * SYSTEM to SYSTEM: When requested, HLP can provide the Purchaser direct support via modem and communication software in real time. * INTERNET WEB SITE: An internet site is available 24 hours and 7 days per week to registered Users. Questions, suggestions, and comments may be posted to other Users or the HLP staff. Data can be uploaded and down loaded, all through a local access call. * PERSONNEL ON-SITE: If, for any reason, HLP cannot resolve the Purchaser's request by the means of support listed above, and HLP deems the request critical, then HLP staff may visit the Purchaser's site to resolve the problem. VII. LIMITED WARRANTY: * HLP is the owner of PUBLIC ACCESS and has the right to grant the Purchaser this license to use the same without violating any rights of any third party, and there is currently no actual or threatened suit by any such third party based on the alleged violation of such right by HLP. * HLP warrants that PUBLIC ACCESS will perform substantially in accordance with it's intended use. * If PUBLIC ACCESS does not perform as represented and cannot be remedied within a reasonable time, HLP will refund the initial cost of this License only. * HLP does not warrant performance of PUBLIC ACCESS if it is modified by persons other than the staff of HLP. * HLP does not warrant that the execution of PUBLIC ACCESS will be uninterrupted or error free. * HLP does not warrant that other software programs or computer hardware will not interfere with it’s execution. * HLP disclaims all other warranties, either expressed or implied. VIII. LIABILITY: Under this agreement, HLP shall not be liable for any damages resulting from loss of data or use, lost profits or revenue, or any incidental or consequential damages. IX. TERMINATION: HLP may terminate any License granted if Purchaser fails to observe this agreement, and such condition is not remedied within thirty days after written notice has been given Purchaser. Purchaser will then destroy all copies and adaptations of all versions of PUBLIC ACCESS and certify in writing that such has been done. 1/2015   Packet Pg. 612 PRICE QUOTE Date 3/9/2022 Estimate # 5882 Name / Address City of San Bernardino Attn: Information Services 4th Floor 300 North D Street San Bernardino, CA 92418 HLP, INC Chameleon Software Products 9878 West Belleview Ave. #110 Littleton, CO 80123 Please return your license renewal form as soon as possible. Phone # 800-459-8376 Fax # 866-844-3924 E-mail Accounting@chameleonbeach.com Web Site www.chameleonbeach.com Total Subtotal Sales Tax (8.75%) Description TotalQtyRate Period covered - July 1, 2022- June 30, 2023 Chameleon/CMS Software Annual Support & Maintenance 17,280.00T18 960.00 * Licensed for a 1 single Server & 17 Workstations Query Only Workstations 320.00T2 160.00 Required annual WebLicensing/WebDonation service fee.3,840.001 3,840.00 Estimated WebLicensing Transactions 2,100.006,000 0.35 Annual Service Fee for VetImport 1,920.001 1,920.00 Estimated Vetimport/ImageEntry Transactions 3,950.005,000 0.79 WebChameleon Software Annual Support & Maintenance - Server 2,880.00T1 2,880.00 WebChameleon Software Annual Support & Maintenance - Concurrent User 5,760.00T6 960.00 WebChameleon WebRescue Initial Setup Fee 3,000.00T1 3,000.00 WebChameleon WebRescue Software Annual Support & Maintenance - Up to 50 Users 1,000.00T1 1,000.00 Period covered - July 1, 2023- June 30, 2024 Chameleon/CMS Software Annual Support & Maintenance * Licensed for a 1 single Server & 17 Workstations 17,280.00T18 960.00 Query Only Workstations 320.00T2 160.00 Required annual WebLicensing/WebDonation service fee.3,840.001 3,840.00 Estimated WebLicensing Transactions 2,100.006,000 0.35 Annual Service Fee for VetImport 1,920.001 1,920.00 Estimated Vetimport/ImageEntry Transactions 3,950.005,000 0.79 WebChameleon Software Annual Support & Maintenance - Server 2,880.00T1 2,880.00 WebChameleon Software Annual Support & Maintenance - Concurrent User 5,760.00T6 960.00 Page 1   Packet Pg. 613 PRICE QUOTE Date 3/9/2022 Estimate # 5882 Name / Address City of San Bernardino Attn: Information Services 4th Floor 300 North D Street San Bernardino, CA 92418 HLP, INC Chameleon Software Products 9878 West Belleview Ave. #110 Littleton, CO 80123 Please return your license renewal form as soon as possible. Phone # 800-459-8376 Fax # 866-844-3924 E-mail Accounting@chameleonbeach.com Web Site www.chameleonbeach.com Total Subtotal Sales Tax (8.75%) Description TotalQtyRate WebChameleon WebRescue Software Annual Support & Maintenance - Up to 50 Users 1,000.00T1 1,000.00 Period covered - July 1, 2024- June 30, 2025 Chameleon/CMS Software Annual Support & Maintenance * Licensed for a 1 single Server & 17 Workstations 17,280.00T18 960.00 Query Only Workstations 320.00T2 160.00 Required annual WebLicensing/WebDonation service fee.3,840.001 3,840.00 Estimated WebLicensing Transactions 2,100.006,000 0.35 Annual Service Fee for VetImport 1,920.001 1,920.00 Estimated Vetimport/ImageEntry Transactions 3,950.005,000 0.79 WebChameleon Software Annual Support & Maintenance - Server 2,880.00T1 2,880.00 WebChameleon Software Annual Support & Maintenance - Concurrent User 5,760.00T6 960.00 WebChameleon WebRescue Software Annual Support & Maintenance - Up to 50 Users 1,000.00T1 1,000.00 Page 2 $127,563.00 $120,150.00 $7,413.00   Packet Pg. 614 7 9 1 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager Department:City Manager's Office Subject:2023 National League of Cities Congressional City Conference Travel Approval (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, pre-approve travel to the 2023 National League of Cities Congressional City Conference for the Mayor and City Council. Background On July 20, 2022, the Mayor and City Council preapproved travel for FY 2022/23 for the following conferences: •Women in Municipal Government (WIMG) Conference, Sacramento, CA, August 2022 •League of California Cities Annual Conference and Expo, Long Beach, CA, September 2022 •National League of Cities City Summit, Kansas City, MO, November 2022 •Southern CA Association of Governments (SCAG) Regional Conference and General Assembly, April-May 2023 •U.S. Conference of Mayors Winter Meeting, Washington, DC, January 2023 •U.S. Conference of Mayors Annual Meeting, Columbus, OH, June 2023 •SBCTA City County Conference TBD 2023 From March 26 to March 28, 2023, the National League of Cities (NLC) will be holding the Congressional City Conference (CCC) in Washington, D.C. The NLC CCC features policy discussions and general session addresses from local government   Packet Pg. 615 7 9 1 experts, members of Congress, and White House Administration officials. This conference provides opportunities for municipal leaders to meet directly with federal officials where they can discuss local issues, top city priorities, and federal funding opportunities. Discussion The Travel Authority and Expense Policy adopted by the Mayor and City Council requires pre-approval by the Mayor and City Council for any travel by an elected official. To ensure that the Mayor and City Council can complete travel that is beneficial to the City for FY 2022/23, staff recommends pre-approving travel to the NLC CCC for the Mayor and City Council Members. The Mayor and City Council have already pre- approved travel for seven conferences for FY 2022/23. The 2023 NLC CCC will serve as a valuable experience for City officials, where they can interact with federal policymakers and learn more about federal funding opportunities. At the previous NLC CCC, President Biden gave a keynote speech discussing the important role local governments play in implementing the American Rescue Plan Act, and Secretary Buttigieg held a discussion about the local funding possibilities included in the Bipartisan Infrastructure Law (BIL). The City of San Bernardino was awarded $77 million in ARPA funds and is actively researching and applying for grants that are funded through the BIL and Inflation Reduction Act, demonstrating the importance these federal funding opportunities play in enhancing City services and operations. By attending the 2023 NLC CCC and interacting directly with federal policymakers, City officials will gain valuable insight into the latest funding opportunities and learn about emerging practices that strengthen local economic growth. 2021-2025 Strategic Targets and Goals This item aligns with Key Target No. 1d: Improved Operational and Financial Capacity – Create a framework for spending decisions, and Key Target No. 2c: Focused, Alighted Leadership and Unified Community – Re-establish City as the Regional Leader/County Seat. Fiscal Impact Staff is assessing participation and engagement at conferences beneficial to the City. If needed before current budgets are expended, staff will request an appropriation as part of the quarterly budget updates to the City Council. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, pre-approve travel to the 2023 National League of Cities Congressional City Conference for the Mayor and City Council.   Packet Pg. 616 7 9 1 Attachments Attachment 1 Travel Authority and Expense Policy Ward All Wards Synopsis of Previous Council Actions: July 20, 2022 Mayor and City Council ratified travel detail and pre-approved specified travel for the Mayor and City Council for Fiscal Year 2022/23. August 18, 2021 Mayor and City Council adopted Resolution No. 2021-212 approving the revised Travel Authority and Expense Policy retroactive to July 21, 2021. July 22, 2021 Mayor and City Council adopted Resolution No. 2021-164 approving the Travel Authority and Expense Policy, and repealing Resolution Nos. 9151 and 89-100. February 3, 2021 Mayor and City Council provided conceptual support for the development of a comprehensive administrative policy manual to ensure that City employees and appointed officials are operating under a clear set of guidelines that govern the City. April 17, 1989 Mayor and City Council adopted Resolution No. 89-100 amending Resolution No. 9151 and providing for reimbursement for meals at the rate of forty-five dollars ($45.00) per day and repealing Resolution No. 84-226. June 18, 1984 Mayor and City Council adopted Resolution No. 84-226 amending Resolution 9151 and providing for reimbursement for meals at the rate of thirty-five dollars ($35.00) per day. April 29, 1968 Mayor and City Council adopted Resolution No. 9151 establishing a policy for the attendance of City Employees and Elected Officials at conferences or meetings and set forth authorized expenses and allowances for expenses incurred on official business of the City.   Packet Pg. 617 City of San Bernardino Administrative Policy Manual Subject: Travel Authority and Expense Policy Purpose: To set forth the policies governing reimbursement for travel expenses and to establish certain procedures concerning travel authorization, documentation, and accounting for all Departments, Employees and Elected Officials of the City of San Bernardino. The City has two objectives when paying travel-related expenses: 1) to provide employees sufficient funds to execute business on behalf of the City and 2) to safeguard City funds by paying only reasonable and necessary expenses. This administrative policy outlines what constitutes a reasonable and necessary expense. Authority: Resolution No. 2021-212 Scope: Unless otherwise stipulated herein, this policy applies to all City Employees and Elected Officials. All such employees and officials shall comply with the provisions outlined in this policy. For City Employees, the Department Director, or their designee, and for Elected Officials, the Director of Finance is ultimately responsible for ensuring that travel expenditures comply with this administrative policy and for the thorough review and approval of all documents necessary for the disbursement of City funds related to travel. The purpose of the required documentation is to ensure transparency and provide sufficient evidence to anyone who reviews travel transactions that public funds were expended in compliance with this administrative policy. Exemption from Scope None. Policy: The City of San Bernardino encourages attendance at conferences, seminars, meetings and workshops to enhance an employee’s understanding of his/her duties and responsibilities. The City will reimburse travel expenditures according to the procedures outlined in this policy. Travel is deemed to be official when such travel of City Employees and Elected Officials are away from the City for the purpose of conducting business of the City, attending professional meetings, seminars, conferences, training, workshops and other related meetings. This policy is applicable to all travel, regardless of the source of funds used for reimbursement.   Packet Pg. 618 Travel Authority and Expense City of San Bernardino - Administrative Policy Manual 2 6 3 Only authorized expenses as set forth in this policy will be paid by the City or reimbursed. Unauthorized expenses incurred on a City P-Card must be reimbursed to the City by the City Employee of Elected Official within ten (10) business days of reconciliation of travel documentation. Definitions (a)Elected Official - any elected person representing the City in an official capacity that is not considered an employee. City Council, at their discretion, may approve travel for appointed Commissioners. For purposes of compliance with this policy, Commissioner travel will be treated the same as that of Elected Officials. (b)Local Travel - travel within a radius of seventy-five (75) miles from the employee’s regular work site, one way, for a one-day session or multiple day sessions. (c)Mileage Allowance – reimbursement paid to a City Employee for the use of his/her personal vehicle during travel or official City business. The reimbursement rate will be the current rate established by the Internal Revenue Service (IRS). (d)Out-of-Town Travel – any travel over seventy-five (75) miles from employee’s regular work site, including out of state that requires subsistence or actual living expenses. Travel out of the country must be approved by the City Manager’s Office. (e)Travel – any trip taken by a City Employee or Elected Official in the course of performing his/her duties, including trips to conferences, seminars, meetings, workshops and training. (f)GSA Per Diem Rate – herein used to refer to the allowance for meals and incidental expenses established by the U.S. General Services Administration for destinations in the continental United States. The Per Diem allowance rates can be accessed via the internet at www.gsa.gov/perdiem. Authorized Expenses These guidelines are not intended to address every issue, exception, or contingency that may arise in the course of travel or performance of official duties. Accordingly, the basic standard that should always prevail is to exercise good judgment in the use and stewardship of the City's resources. Any questions regarding the propriety of a particular type of expense should be resolved with the Finance Department or, in the case of Elected Officials, with the City Council, before the expense is incurred.   Packet Pg. 619 Travel Authority and Expense City of San Bernardino - Administrative Policy Manual 2 6 3 Elected Officials please note: Expenses that do not fall within the scope of this policy, and for which payment or reimbursement will be requested, must be approved by the City Council in a public meeting before the expense is incurred. (a)Actual and Necessary Expenses. The City will directly pay or City Employees and/or Elected Officials will be reimbursed for the actual and necessary expenses incurred in the performance of the official duties for their position, provided that, except as otherwise articulated in this Policy, reimbursement shall always be at the lesser of the actual cost or the current GSA Per Diem Rates, unless otherwise approved by the City Council in advance. Expenses that the City will pay include transportation, lodging, registration fees, meals, and any other incidental and related expenses if they are for official business and are authorized by this policy. (b)Authorized Events and Activities. Expenses incurred in connection with the following types of events or activities will generally be authorized for payment or reimbursement: a.Attending educational seminars, conferences, or activities designed to improve skills and information levels. b.Participating in regional, state, national and international organizations whose activities affect the City’s interests. c.Activities that involve either: (a) City Employees or Elected Officials attending as a representative of the City of San Bernardino at events; or (b) City Employees as part of their City job duties or responsibilities, or organizing or assisting with the management or operation of events. d.Meetings with consultants, professionals, constituents, applicants or other private or governmental entities or agencies, which are necessary for the performance of their position. (c)Unauthorized Events and Activities. Expenses incurred for personal matters will not be paid or reimbursed. If time is taken away from official business for personal matters, or if the return is delayed after completion of the event to attend to personal matters, any expenses incurred for such personal matters will not be paid or reimbursed. If a City Employee desires to combine business and personal travel in this manner, the written approval of the City Employee’s Department Director, or the City Manager if the City Employee   Packet Pg. 620 Travel Authority and Expense City of San Bernardino - Administrative Policy Manual 2 6 3 is a Department Director, or the City Council if the employee is an Elected Official, is required prior to making travel arrangements. For City Employees, if the extended period required for personal matters occurs during regular scheduled work hours, the time must be counted as annual leave or leave without pay. The following is a non-exhaustive list of prohibited purchases which includes commonly purchased goods or services considered personal in nature, and not an essential part of the City's business and therefore will not be a cost borne by the City of San Bernardino: a. Personal portion of the trip, including expenses incurred for family member(s), friends and/or pets who accompany the City Employee or Elected Official on City business. b. Political contributions or events. c. Charitable contributions. d. Attendance at charitable events not sponsored, co-sponsored or organized by the City. e. Entertainment expenses not directly required as part of attending a meeting/conference, including theater, movies (either in-room or at the theater), sporting events (including gym, massage and/or golf-related expenses), or other cultural events. f. Personal automobile expenses, including traffic citations, other than mileage and toll charges that are otherwise payable or reimbursable under this policy. g. Personal losses incurred while on City business. h. Alcoholic beverages. i. Expenses for trips involving an overnight stay or airfare by Elected Officials or City Employees, unless approved in advance as required by this policy. j. Mileage or other expenses incurred when representing the City on a regional board, commission or other agency when such board, commission or agency allows for the payment or reimbursement by them of such mileage or other expenses. k. Mileage reimbursement for those receiving a monthly vehicle allowance.   Packet Pg. 621 Travel Authority and Expense City of San Bernardino - Administrative Policy Manual 2 6 3 l. Vehicle rental expenses when the mode of transportation to the event or destination was not air travel. m. The use of private aircraft for the conduct of City business is expressly prohibited. Prior to Trip – Advance Approval (a)Advance Approval for City Employees. When requesting to travel either overnight or via airplane, City Employees must request advance approval from the person charged with approving the expenditure in compliance with this Policy. Such request shall be submitted using the Travel Authority & Expense Request form. Approval must be obtained prior to incurring any non-refundable expenses for the trip, including, but not limited to, event registration, flights or hotel reservations. In the event travel is conducted without prior approval, the employee will be held responsible for all expenses incurred and will be required to reimburse the City. (b)Advance Approval for Elected Officials. When requesting to travel either overnight or via airplane, Elected Officials must request advance approval from the City Council during a regular City Council meeting using the Travel Authority & Expense Request form. Approval must be obtained prior to incurring any non-refundable expenses for the trip, including, but not limited to, event registration, flights or hotel reservations. In the event travel is conducted without prior approval, the Elected Official will be held responsible for all expenses incurred and will be required to reimburse the City. (c)Travel Request Forms. The Travel Authority & Expense Request form can be found on the Employee Intranet page. Transportation The method of transportation used by individuals will be the most practical and economical, with due consideration given to the time involved, extra meals, lodging costs and the mission to be accomplished. The objective of this administrative policy is to ensure the lowest reasonable cost for travel. It is not intended to create hardships for City Employees or Elected Officials. Each Department may consider employees’ convenience in providing flexibility to those who travel by vehicle. If several employees are authorized to attend the same conference/meeting, the Department shall coordinate travel arrangements to minimize transportation costs to the City.   Packet Pg. 622 Travel Authority and Expense City of San Bernardino - Administrative Policy Manual 2 6 3 Air Travel (a)Commercial Airlines: The City of San Bernardino will pay for coach roundtrip airfare. Employees are expected to take advantage of discounts whenever possible; however, employees are not required to fly at unusual times in order to qualify for discounts. Employees may retain frequent flyer miles and similar travel awards; however, employees shall not pay a higher price for the fare in order to obtain frequent flyer miles. a. Baggage Fees: The City of San Bernardino will pay for the cost of one checked bag per employee traveling. Additional baggage fees will be covered only with written permission of the employee’s Director. b. Upgrades: Other upgrades such as seat selections, travel insurance, and internet on planes may be approved at the discretion of the Director. (b)First-Class Airfare: The City will only pay coach class fares, however, employees may choose to upgrade their seats provided that they pay the difference between the coach fare and the fare for the upgrade. Vehicle Use (a)City Vehicles: Motor pool vehicles or those vehicles assigned to departments should be used when available. When using City Vehicles, employees should use their City Purchasing Card (P-Card) to purchase gasoline and/or emergency repairs whenever practical. Employees without a City P-Card will be reimbursed for the cost of gasoline and/or emergency repairs (receipts are required). For additional information on P-Card usage, please see the City of San Bernardino Purchasing Card Policy. (b)Rental Vehicles: When renting vehicles, the employee should purchase the blanket insurance coverage. The appropriate size of the rental vehicles should depend on such factors as the number of passengers and the amount of luggage or equipment being carried. If a car rental is approved, the employee may use a City P-Card or request reimbursement upon return. Receipts must be provided in order to obtain reimbursement. (c)Car Services/Taxis/Public Transportation: The City of San Bernardino will reimburse employee’s reasonable car fare plus gratuity for required transportation. No more than a 20% tip will be reimbursed. Receipts must be retained and attached to the Travel Authority & Expense Request form. (d)Personal Vehicles: Employees may use their personal vehicle for City travel. Supporting documentation (i.e. Google maps directions) must be attached to the Travel Authority & Expense Request form. The City of San Bernardino will pay the Internal Revenue Service mileage rate in effect at the time of travel. For all mileage   Packet Pg. 623 Travel Authority and Expense City of San Bernardino - Administrative Policy Manual 2 6 3 reimbursement, the employee’s office is to be used as the starting point per IRS rules. When an employee is using his/her personal car on a trip and the destination is more than 300 miles from the employee’s office (one-way), the City will not reimburse the employee for expenses such as lodging, meals and incidental, while in transit, which exceed the cost of a 21-day advance round-trip coach airfare. Any travel time that is greater than the time required to travel by scheduled airlines will be considered vacation time. Normal travel time will not exceed one day. The City shall reimburse the employee for the actual mileage involved in the travel. Reimbursed mileage rate is the Standard Federal Mileage Rate set by the Internal Revenue Service for the current year. Personal car mileage reimbursements are made based on the actual mileage. No cash advance for mileage is allowed. a. Personal car travel reimbursement is limited to the lesser of either the cost of making the trip by 21-day advance coach airfare or mileage reimbursement. b. The City will pay for additional work-related mileage at the destination. A mileage log or other documentation (i.e. Google map) must be attached to the Travel Authority & Expense Request form. c. When travel is by airfare, the City will pay for airport parking expenses. For airport parking, supporting documentation must be attached to the Travel Authority & Expense Request form and can be obtained from the airport’s website. Mileage reimbursement to the airport will be calculated from the employee’s office per IRS rules. d. If an employee is driving a personal vehicle outside of the City and has car failure, the City will pay the expense of towing the vehicle to the nearest garage, over and above the employee’s personal towing insurance coverage. The employee must pay for all repairs. The towing and insurance documentation, reflecting the amount covered, must be attached to the Travel Authority & Expense Request form. e. Mileage will not be reimbursed to employees using City vehicles or who receive auto allowances. f. To drive a privately owned vehicle on City business, the employee must: i. Possess a valid California driver’s license. ii. Carry liability insurance, as required by the State of California. iii. Acknowledge that any damage to the employee’s personal vehicle and/or service or repair occurring on the trip will be the employee’s responsibility, as these costs are included in the City’s per mile cost reimbursement.   Packet Pg. 624 Travel Authority and Expense City of San Bernardino - Administrative Policy Manual 2 6 3 Employees are required to notify Human Resources, Risk Management Division at (909) 384-5308 and the employee’s supervisor as soon as possible (within 24 hours) of any event, incident or accident related to rental cars or City vehicles. The employee must complete the “Vehicle Accident Report” form. Compensation for Travel Time When travel time exceeds the normal workweek, the City's rules for overtime apply to those City Employees eligible for overtime pursuant to applicable state and federal laws or as outlined in the various Memorandums of Understanding. In determining overtime compensation, normal commute time between the employee’s residence and the employee’s work location should be deducted from the total travel time. Additionally, normal unpaid meal periods are not considered work time while traveling. Overtime eligibility applies equally to drivers and passengers, and should be granted whether the travel occurs during normal workdays or on weekends or evenings. Elected Officials are not compensated for travel time. It is the responsibility of Department Heads, Division Managers and first line supervisors to schedule travel in a manner that the use of overtime by employees is either not required or is minimized as much as possible. Lodging Actual lodging expenses will be allowed for City Employees and Elected Officials attending conferences, seminars, meetings, or workshops that are more than 75 miles from their normal work site. Lodging at destinations that are less than 75 miles from the normal work site will not be paid for or reimbursed by the City unless it is a multi-day conference. All lodging must be approved in advance. The City encourages travelers to stay at conference/venue hotels whenever available. If these hotels are not available, nearby hotels within easy walking distance or those with shuttle service to the venue should be considered next. The accommodations used should be economical but practical. In general, the employee should select the most reasonably priced accommodations available consistent with the purpose and goals of the travel and within a reasonable distance of the event. The City will pay no more than the cost of a single occupancy room. If an employee shares a room with someone who is not an employee of the City or who is not traveling on City business and the room cost is higher than the single room rate, the employee is responsible for paying the difference in cost. Meals ordered through room service will be subject to the GSA Per Diem Rate. (a)Hotel Rooms   Packet Pg. 625 Travel Authority and Expense City of San Bernardino - Administrative Policy Manual 2 6 3 a. For events starting before noon, lodging will be provided the night prior through the last day of the event. b. Lodging costs may be paid to the hotel directly by the employee, by using a City P-Card or travel advanced to the employee prior to departure if a City P-Card is not used. (b)Lodging expenses shall be reimbursed on an actual cost basis. If a room at a conference/venue hotel is not available, the City Employee or Elected Official should attach documentation showing room rates from three hotels in the vicinity for the same dates, if available, to demonstrate the reasonableness of the lodging cost for the locale. Printouts from hotel reservation websites are acceptable for this purpose. (c)When making lodging reservations in a conference/venue hotel, be sure to ask for the “group rate” for the conference or event. Most companies who host seminars/conferences will offer group rates to attendees. On average, group rates are 15-40% lower than standard rates. If there is no group rate offered, inquire if there is a “government rate” available. Some cities exempt travelers on government business from the local Transient Occupancy Tax (TOT). This can be as high as 12-15% savings on lodging costs depending on the local TOT rate. (d)Telephone: Employees should avoid using hotel provided phones whenever possible. It is recommended that employees who do not have access to a cell phone purchase a pre-paid calling card. Employees who possess City of San Bernardino cell phones should use that phone. (e)Internet: Internet connection fees will be reimbursed at the discretion of the Department Director. (f)Incidental Expenses: Incidental expenses covered as part of the GSA Per Diem Rate for meals and incidental expenses include: fees and tips given to porters, baggage carriers, bellhops, and restaurant servers. (g)Itemized receipts for lodging expenditures must be attached to the Travel Authority & Expense Request form when submitted for processing. Meals and Incidentals Meal expenses incurred by City Employees or Elected Officials while traveling shall be reimbursed according to the GSA Per Diem Rate for the destination, available at www.gsa.gov/perdiem. If neither the city nor county is specifically listed, the rate for meals and incidental expenses will be the standard GSA Per Diem destination rate.   Packet Pg. 626 Travel Authority and Expense City of San Bernardino - Administrative Policy Manual 2 6 3 The City will pay for meals at scheduled seminars, training sessions, and other meetings but will not reimburse for meals included in the conference fee. If meals are included in the conference fee, the Per Diem allowance will be reduced by the amount of the included meal using the GSA Per Diem breakdown, example below. (M&IE Breakdown, 2021) M&IE Total Continental Breakfast/ Breakfast Lunch Dinner Incidentals First and Last day of Travel (75%) $55 $13 $14 $23 $5 $41.25 $56 $13 $15 $23 $5 $42.00 $61 $14 $16 $26 $5 $45.75 $66 $16 $17 $28 $5 $49.50 $71 $17 $18 $31 $5 $53.25 $76 $18 $19 $34 $5 $57.00 Note: This M&IE breakdown is an example. Please refer to the current GSA rates and breakdown at www.gsa.gov/perdiem. A conference itinerary/schedule must be included as supporting documentation. The City will not pay for social or recreational conference functions that are separate ticketed events not included in the base conference registration fee without prior approval of the Director (to be noted on Travel Authority & Expense Request form). Meal related tips are included in the per diem rate total. (a)Meals Paid with a Purchasing Card a. Employees using their P-Card for travel-related meals must retain itemized receipts and submit them as usual as part of the P-Card process. Use of a P-Card for meals should be indicated on the Travel Authority & Expense Request form with copies of the receipts attached. b. P-Card payment for meals should not exceed the per diem rate established by the GSA. Any cost in excess of the GSA established per diem rate must be reimbursed by the employee within ten (10) business days of reconciliation of travel documents. c. If the per diem breakdown for a meal is higher than a P-Card payment for that meal, the P-Card User is not entitled to receive the difference as a reimbursement. d. If a meal is purchased with a P-Card and the receipt is lost, or the P-Card User does not retain the itemized receipt, the User must attach a memo to the Travel Authority & Expense Request form explaining the lost receipt. e. While Authorized P-Card Users may use their P-Card to purchase meals during travel, it is recommended that travelers either request a travel advance or pay out of pocket and request reimbursement for meals.   Packet Pg. 627 Travel Authority and Expense City of San Bernardino - Administrative Policy Manual 2 6 3 i. Using P-Cards to pay for meals requires the retention of itemized meal receipts while traveling. ii. There is a greater administrative burden in reconciling both the Travel Authority & Expense Request form and P-Card transactions to ensure that expenses are recorded accurately. (b)Meals Reimbursed or Paid with a Travel Advance a. Employees paying for meals out of pocket or with a travel advance DO NOT need to retain receipts. Meals will be reimbursed, or a travel advance provided at the GSA Per Diem Rate. If requesting a meal payment or reimbursement for a guest, the City Employee or Elected Official must include the name and business relationship of the guest to substantiate the expense. Only actual and necessary expenses incurred in the performance of official duties will be paid or reimbursed. Meal expenses of family members or those with a personal relationship with the Elected Official or City Employee will not be paid or reimbursed, unless a separate and defined business relationship is established and only if such payment or reimbursement is not prohibited by any other applicable laws, rules, or regulations. One-day Travel Meal payment or reimbursement does not include meals eaten prior to or after a trip. If travel on City business does not require a full 24-hour day, only meals that are required as part of the trip, as determined by the City Council, Department Head, or City Manager will be paid or reimbursed. As a general guideline, if a City Employee is being paid to work on the day that the expense is incurred, payment or reimbursement will not be provided for expenses incurred for meals that would typically be eaten before the Elected Official or City Employee normally leaves his or her home for work or expenses incurred for meals that would typically be eaten after the Elected Official or City Employee normally arrives home from work. Travel-related meals will be reimbursed if an overnight stay is required or if multiple trips are required during two or more consecutive days. If a Department Director authorizes meal reimbursement for an employee for a daytrip related to training or other City business and the day-trip is for more than 12 hours and less than 24 hours, the employee will receive reimbursement at 75% the GSA Per Diem Rate (travel day rate). If a Department Director authorizes a meal reimbursement for a day-trip that is less than 12 hours, the employee will receive reimbursement for specific meals during the trip only. Because IRS regulations identify daytrip meals as taxable to the employee, any meal reimbursement for a daytrip will be reported on the employee’s W-2 form and subject to employment taxes in accordance with these regulations. That is, if travel does not require an overnight stay, meal expenses may be reimbursed with   Packet Pg. 628 Travel Authority and Expense City of San Bernardino - Administrative Policy Manual 2 6 3 Department Director approval but must also be added to the employee’s wages for tax purposes. (IRS Pub. 5137) Extended Travel Employees attending training or conferences for an extended time period, more than seven consecutive days, may elect to purchase groceries and prepare their meals during their training/conference. (a) Groceries reimbursed or paid with a travel advance. a. Employees paying for groceries out of pocket or with a travel advance DO NOT need to retain receipts. The GSA Per Diem will be calculated in the aggregate for the extended travel time to determine the amount of the advance or reimbursement. b. No individual meals will be reimbursed or included in the travel advance. c. Any meals provided during the training/conference will be deducted from the reimbursement/advance amount at the M&IE breakdown amount. (b) Groceries paid for with a P-Card. a. While P-Card users may use their P-Card to pay for groceries while traveling, it is recommended that travelers either request a travel advance or pay out of pocket and request reimbursement for groceries. b. If a P-Card is used to purchase the groceries, the employee must retain and submit grocery receipts and submit them as usual as part of the P- Card process. Use of a P-Card for groceries must be indicated on the Travel Authority & Expense Request form with copies of the receipts attached. c. Meals purchased in addition to groceries. If meals are also purchased on a P-Card during extended travel, the employee must retain and submit itemized receipts and submit them as usual as part of the P-Card process and use of a P-Card for groceries and meals must be indicated on the Travel Authority & Expense Request form with copies of the receipts attached. The total cost of groceries and meals purchased may not exceed the aggregate Per Diem. d. Any meals provided as part of the conference/training fee will be deducted from the aggregate Per Diem at the M&IE breakdown amount. e. P-Card charges for groceries and meals exceeding the Per Diem rate in the aggregate must be repaid to the City within ten (10) business days of reconciliation of travel documents. f. If the total paid for groceries on a P-Card is less than the aggregate Per Diem, the P-Card User is not entitled to receive the difference as a reimbursement.   Packet Pg. 629 Travel Authority and Expense City of San Bernardino - Administrative Policy Manual 2 6 3 g. An employee electing to purchase and prepare food during an extended stay may purchase food to be consumed during the travel period only. h. No reimbursement will be made for incidentals including kitchen utensils, cookware, kitchen supplies and sundries, except for basic paper goods such as napkins and paper towels or their reusable equivalent. It is incumbent upon the traveler to verify that the hotel has an adequately stocked kitchenette when making reservations. (c) The City will not pay for laundry services or dry cleaning. Payments to Vendors, Cash in Advance and Employee Reimbursement The City will pay all legitimate travel expenses for City Employees and Elected Officials traveling on authorized City business. These include transportation, lodging, registration fees, meals, and other related expenses if they are for official business and fit within the guidelines established in this policy. (a)There are four ways to pay for travel expenses: a. Direct Vendor Payments - Are made by the City to an organization to pay for specific costs related to a trip. These are usually registration fees, lodging, or airfare and can be paid through accounts payable or through the use of a City P-Card. b. Cash Advance - Advance payments to the City Employee or Elected Official may be requested for estimated expenses for travel. Requests for advance payments, with an itemized list of estimated expenses, shall be submitted on the Travel Authority &Expense Request form to the Finance Department at least seven (10) business days prior to the event and must be approved by the Department Head, Director of Finance and City Manager or the City Council for advance payment requests from Elected Officials. Funds will be released no more than seven (7) days prior to the event departure date. Travel advances will not be issued to employees to whom City P-Cards have been issued. In addition, travel advances will not be issued for mileage or items that were paid prior to attending the event (i.e., registration fees). c. Per Diem - For City Employees or Elected Officials electing Per Diem payment for meal expenses, the City shall reimburse at the fixed GSA Per Diem Rates on a meal-by-meal basis based upon the locality of travel. Receipts shall not be required for Per Diem reimbursement, provided that records pertaining to the time, place and official business purposes of the event or activity are submitted. City Employees or Elected Officials electing Per Diem reimbursement shall not incur meal expenses on City issued credit cards (P-Cards) or seek actual cost reimbursement for meal   Packet Pg. 630 Travel Authority and Expense City of San Bernardino - Administrative Policy Manual 2 6 3 expenses covered by Per Diem reimbursement. Payment of the fixed GSA Per Diem Rates shall be made after the event or activity has occurred and shall not be paid to City Employees or Elected Officials in advance. d. Reimbursement - occurs when the employee or Elected Official elects to pay for all travel related expenses first, and is reimbursed upon completion of the travel. (b)Upon return from the event, all expenses incurred will need to be accounted for by completing the bottom portion of the Travel Authority & Expense Request and return the unused portion of the cash advance within seven (7) business days. (c)If a trip was cancelled, all advance travel payments shall be returned to the City within five (5) business days after the employee receives a notice of cancellation. (d)The employee will be reimbursed the difference if the actual, authorized expenses incurred exceed the amount advanced consistent with the guidelines set forth in this policy. Procedure: The following are step-by-step instructions for obtaining approval for travel requests. Action/Responsibility: Department Travel Coordinator (a)In as far in advance as possible but at least thirty (30) days prior to the date of departure, prepare Part 1 of the Travel Request & Expense Request form to include the following: a. Details of travel: attach registration form or flyer describing the event showing location, dates, times, costs, etc. b. For lodging requests, attach supporting documentation related to the group rate or government rate when offered or comparison room rates for the locale. c. Obtain approval from the City Employee’s Department Head, Director of Finance, and the City Manager, or from City Council for Elected Officials. (b)After approval, the responsible Travel Coordinator should make the arrangements for the trip payable to the traveler or service provider for: a. Transportation b. Lodging c. Registration / Tuition fee d. Meals e. Other expenses covered by this Policy   Packet Pg. 631 Travel Authority and Expense City of San Bernardino - Administrative Policy Manual 2 6 3 Action/Responsibility: Department Head (a)Assign a designated employee to function as the Department Travel Coordinator to maintain travel request documents and to coordinate advance payment and/or reimbursement of employees’ travel expenditures with Accounts Payable. (b)Receive travel documents from Department Travel Coordinator and review forms for completeness and accuracy. (c)Approve or deny local travel requests. Action/Responsibility: Finance Department (a)Review all travel forms/documents for completeness and compliance with this policy and inform Department of non-compliance issues. (b)Process City Employees’ or Elected Officials’ travel expenditures in accordance with this policy. Reconciliation and Verification of Expenses The following are step-by-step instructions for reconciliation and verification of travel expenses. Action/Responsibility: Employee or Elected Official Within seven (7) working days of return date to work: (a)If less money than the travel advance was spent, submit the unspent funds made payable to the City of San Bernardino and provided to the Department Travel Coordinator with the original receipts. (b)If more money than the travel advance was spent, submit the receipt for the expense along with an explanation to the Department Travel Coordinator. Subject to the guidelines set forth in this policy, the difference may be reimbursed upon approval. Action/Responsibility: Department’s Travel Coordinator (a)Attach all receipts required in this policy to the Travel Authority & Expense Request form. Complete Part 2 of the form and submit to the employees’ Department Head and Director of Finance for review and approval, or for Elected Officials, submit to Director of Finance.   Packet Pg. 632 Travel Authority and Expense City of San Bernardino - Administrative Policy Manual 2 6 3 CITY OF SAN BERNARDINO TRAVEL AUTHORITY & EXPENSE REQUEST Part 1. Travel AuthorityName & Title of Requestor Department Date of Request Destination City Dates Purpose of Travel Destination Hotel:Post Approved Yes (Plan ) / No Hotel Government Rate: $ N/A: Reason: Hotel Group Rate: $ N/A: Reason: Hotel Per Diem Rate: $ Please attach the government rate, group rate, and/or the Per Diem Rate as applicable to this form. Comments: Signature of Requestor:Estimate Cost of Trip: $ Date:Advance Money Requested: $ Office Phone:Account number: Indicate if travel was included in the Department Budget Yes No APPROVED (Department Head Signature): FUNDS AVAILABLE (Director of Finance Signature): APPROVED (City Manager/City Council Signature): Part 2. Expense ReportEXPENSE CATEGORIES:Paid by City Paid by Traveler Transportation: Air City Car Private Car (Mileage ) Other $$ Garage and/or Parking $$ Lodging $$ Registration Fees $$ Meals $$ Other $$ Other $$ TOTAL EXPENSE $$ Amount Paid by Traveler $ Cash Advance – Check No:$I hereby certify that this is a true andBalance Due to Traveler/City $correct statement of expenditures. Receipt or Check No: Traveler Signature APPROVED (Department Head Signature) APPROVED (Director of Finance Signature)   Packet Pg. 633 8 2 5 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager Department:City Manager's Office Subject:Technical Corrections to Previously Adopted Items: 1) Resolution No. 2022-203 authorizing the City Manager to receive and administer California Board of State & community corrections grant award of $3.8 million, authorizing the City Manager to execute a fourth amendment to an agreement with HOPE Culture, and authorizing the Agency Director of Administrative Services to amend the FY 2022/2023 adopted budget revenue and expenditures by $3,800,000.00 (All Wards) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California reaffirm their previous action of: Adopting Resolution No. 2022-203 authorizing the City Manager to receive and administer California Board of State & community corrections grant award of $3.8 million, authorizing the City Manager to execute a fourth amendment to an agreement with HOPE Culture, and authorizing the Agency Director of Administrative Services to amend the FY 2022/2023 adopted budget revenue and expenditures by $3,800,000.00. Background Items that are not properly listed on the public agenda should be revisited at a future Council meeting to ensure full transparency and legal compliance. As the City has transitioned to a new agenda management system, there have been inevitable growing pains associated with working in a new system - including both technical and operational issues, which staff is diligently working to address. Unfortunately, as a result of these issues, an item was listed incorrectly on the agenda for each of the past three meetings. Although the staff reports and attachments were correct, it is important for the agenda proper to accurately reflect the actions being taken. These items should be reaffirmed by the Mayor and City Council in open session for transparency and to   Packet Pg. 634 8 2 5 ensure that the City complies with all legal requirements. Discussion The following item was not properly listed on the publicly posted agenda for the September 21, 2022, Mayor and City Council meeting: 1. Resolution 2022-203 Adopting Resolution No. 2022-203 authorizing the City Manager to receive and administer California Board of State & community corrections grant award of $3.8 million, authorizing the City Manager to execute a fourth amendment to an agreement with HOPE Culture, and authorizing the Agency Director of Administrative Services to amend the FY 2022/2023 adopted budget revenue and expenditures by $3,800,000.00. Council adopted the resolution; however, because the budget amendment listed on the resolution did not match the amount listed on the publicly posted agenda, the item is required to be brought back to Council as a technical correction. The staff report and attachments that were included with publicly posted agenda correctly described the action proposed by staff. 2021-2025 Strategic Targets and Goals This technical corrections align with Key Target No. 1c: Improved Operational and Financial Capacity - implement, maintain and update a fiscal accountability plan, by upholding financial transparency and accountability. Fiscal Impact Technical corrections have no fiscal impact. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California reaffirm their previous action of: Adopting Resolution No. 2022-203 authorizing the City Manager to receive and administer California Board of State & community corrections grant award of $3.8 million, authorizing the City Manager to execute a fourth amendment to an agreement with HOPE Culture, and authorizing the Agency Director of Administrative Services to amend the FY 2022/2023 adopted budget revenue and expenditures by $3,800,000.00. Attachments Attachment Resolution 2022-203 Ward: All Wards   Packet Pg. 635 8 2 5 Synopsis of Previous Council Actions: February 21, 2018 The Mayor and City Council adopted Resolution No. 2018-39, authorizing the City Manager to receive and administer Board of State & Community Correction grant funds. December 5, 2018 The Mayor and City Council approved community intervention professional service agreements. January 15, 2020 The Mayor and City Council adopted Resolution No. 2020-03 authorizing the City Manager to prepare and submit funding proposal. June 2, 2020 The Mayor and City Council approved first amendments to community intervention program contractors. October 21, 2020 The Mayor and City Council adopted Resolution No. 2020-251 authorizing the City Manager to receive and administer Board of State & Community Correction grant funds. The Mayor and City Council also adopted resolution no. 2020-252 approving second budget amendments to community intervention professional service agreements. October 6, 2021 The Mayor and City Council voted and approved motion to allocate One Million Dollars of American Rescue Plan Act funds and release a request for proposals to secure three additional vendors. June 1, 2022 The Mayor and City Council voted and approved American Rescue Plan Act professional services agreement contracts. September 21, 2022 The Mayor and City Council adopted resolution 2022-203 authorizing the City Manager to receive and administer California Board of State & community corrections grant award of $3.8 million, authorizing the City Manager to execute a fourth amendment to an agreement with HOPE Culture, and authorizing the Agency Director of Administrative Services to amend the FY 2022/2023 adopted budget revenue and expenditures by $3,800,000.00   Packet Pg. 636 RESOLUTION NO. 2022-203 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO RECEIVE AND ADMINISTER CALIFORNIA BOARD OF STATE AND COMMUNITY CORRECTIONS GRANT AWARD OF $3.8 MILLION; AUTHORIZING THE CITY MANAGER TO EXECUTE A FOURTH AMENDMENT TO AN AGREEMENT WITH VICTORY OUTREACH SAN BERNARDINO; AND AUTHORIZING THE AGENCY DIRECTOR OF ADMINISTRATIVE SERVICES TO AMEND THE FY 2022/2023 ADOPTED BUDGET REVENUE AND EXPENDITURES BY $3,800,000 WHEREAS, the California Board of State and Community Corrections (BSCC) prepared and released the California Violence Intervention & Prevention Grant Program (CalVIP-4) request for proposals; and WHEREAS, the Mayor and City Council of the City of San Bernardino authorized the City Manager’s office to prepare and submit a CalVIP-4 proposal in the amount of $3.8 million; and, WHEREAS, the City of San Bernardino received notification it was awarded a multi-year $3.8 million grant award; and, WHEREAS, the CalVIP-4 grant funds will be used for community-based organizations to implement data-driven, evidence-based violence reduction strategies and focus on the highest risk individuals. NOW, THEREFORE, 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 Mayor and City Council of the City of San Bernardino hereby accepts the CalVIP-4 grant award in the amount of $3.8 million. SECTION 3. The Mayor and City Council hereby authorize the City Manager to execute a fourth amendment to the agreement with Victory Outreach San Bernardino and execute any documents necessary to accept the CalVIP-4 grant award and meet the grant requirements, including but not limited to, the California Standard Grant Agreement as well as any subsequent amendments to said agreement.   Packet Pg. 637 Resolution No. 2022-203 9 5 4 SECTION 4. The Mayor and City Council hereby authorize the Agency Director of Administrative Services to amend the FY 2022/23 adopted budget in both revenues and expenditures by $3,800,000. SECTION 5. The City of San Bernardino agrees to ensure all matching funds required for the above grant are met, abide by the terms and conditions of the Standard Grant Agreement as set forth by the BSCC. SECTION 6. The Mayor and City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 7. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 8. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2022. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 638 Resolution No. 2022-203 9 5 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 Resolution No. 2022-203, adopted at a regular meeting held on the ___ day of _______ 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2022. Genoveva Rocha, CMC, City Clerk   Packet Pg. 639 7 8 8 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager Nathan Freeman, Agency Director of Community, Housing, and Economic Development Department:Community & Economic Development (CED) Subject:Imposing Liens on Certain Real Property to Recover Costs for Code Enforcement Abatements Recommendation: Adopt Resolution No. 2022-209 of the Mayor and City Council of the City of San Bernardino, California, imposing liens on certain real property located within the City of San Bernardino for cost recovery of public nuisance abatements. Background On October 5, 2015, the Mayor and City Council adopted Ordinance MC-1418, which repealed San Bernardino Municipal Code Chapters 3.68 and 8.27 and amended Chapter 8.30. On September 18, 2019, the Mayor and City Council adopted Ordinance MC-1521, which made further revisions to Chapter 8.30. These changes have streamlined the process of abating public nuisances on properties and imposing liens to enable the City to recover costs for abating public nuisances. Discussion San Bernardino Municipal Code Section 8.30.050 requires a Resolution be adopted in order to assess unpaid costs of abatement as liens upon the respective parcels of land as they are shown upon the last available assessment roll. The current Abatement Assessments List is attached hereto as Attachment 2. The first section consists of properties with Administrative Hearing Orders. There are no outstanding fees for Code Enforcement Hearing Orders for this time period.   Packet Pg. 640 7 8 8 The ‘Other Abatement Assessments’ are for public nuisance abatements performed by the Code Division which includes properties that were either secured and/or cleaned via administrative inspection warrants or were Unsafe for Occupancy by the Code Enforcement Division. Also, included in this section are emergency board-ups requested by the Police and Fire Departments. Emergency board-ups are requested after a break-in has occurred or after fire suppression activities, when no responsible parties could be reached. All affected property owners identified on the ‘Other Abatement Assessments’ list have been notified through regular and certified mail of the respective abatement costs per SBMC 8.30.023. Further, affected property owners were also issued a Notice of Summary Abatement with the option to schedule a hearing per SBMC 8.30.045 and have also been advised of their right to appeal said costs within ten days, or to pay the costs within 45 days of notice per San Bernardino Municipal Code Section 8.30.030 and 8.30.040. To date, no hearings have been requested and the costs are currently outstanding. As such, staff recommends adopting the Resolution in order to assess the unpaid costs of the nuisance abatements. The total of outstanding fees for ‘Abatement Assessments’ resulting from Administrative Hearing Officer Orders is $0. The total for ‘Other Abatement Assessments’, including emergency abatements, is $8,041.51. The grand total of all unpaid abatements is $8,041.51. If property owners come forward to pay their costs prior to the council meeting, their properties will be removed from Attachment 2. 2021-2025 Strategic Targets and Goals The request to impose liens to recover costs for Code Enforcement abatements aligns with Key Target No. 1: Improved Operational & Financial Capacity and Key Target No. 4: Economic Growth & Development. Imposing liens to resolve public nuisances would ensure the City receives revenue back into the Community & Economic Development Department and that the City continues to strive towards being clean and attractive. Fiscal Impact The anticipated amount to be collected is $8,041.51. This amount will be collected incrementally as individual properties are sold and/or liens are paid through the escrow process or entered as an assessment on the County tax roll. Conclusion Adopt Resolution No. 2022-209 of the Mayor and City Council of the City of San Bernardino, California, imposing liens on certain real property located within the City of San Bernardino for cost recovery of public nuisance abatements. Attachments Attachment 1 Resolution No. 2022-209, Imposing Liens to Recover Costs for Code Enforcement Attachment 2 Resolution No. 2022-209, Exhibit A   Packet Pg. 641 7 8 8 Ward: All Wards Synopsis of Previous Council Actions: October 5, 2015 Mayor and City Council adopted Ordinance MC-1418, repealing San Bernardino Municipal Code Chapters 3.68 and 8.27 and amended Chapter 8.30 of San Bernardino Municipal Code regarding Public Nuisance Abatement. April 18, 2018 Mayor and City Council adopted Resolution 2018-106, imposing liens on certain real property located within the City of San Bernardino for the costs of public nuisance. August 1, 2018 Mayor and City Council adopted Resolution No. 2018-222, imposing liens on certain real property located within the City of San Bernardino for the cost of public nuisance abatements. September 18, 2019 Mayor and City Council adopted Ordinance MC-1521, Amending Chapters 2.45, 8.24, 8.30, 8.36, 9.92, 15.04, 15.05, 15.20, and 15.28 of the San Bernardino Municipal Code, and adding Chapter 9.94 of the San Bernardino Municipal Code, related to various Code Enforcement Procedures, including the City’s administrative hearing procedures and appeals procedures.   Packet Pg. 642 Resolution No. 2022-209 Resolution 2022-209 October 5, 2022 Page 1 of 3 1 0 9 5 6 7 3 RESOLUTION NO. 2022-209 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, IMPOSING LIENS ON CERTAIN REAL PROPERTY LOCATED WITHIN THE CITY OF SAN BERNARDINO OF THE COSTS OF PUBLIC NUISANCE ABATEMENTS WHEREAS, the City of San Bernardino, pursuant to its authority under Chapter 8.30 of the San Bernardino Municipal Code, did lawfully cause public nuisances to be abated on the properties described in the Abatement Assessments List, a copy of which is attached hereto and incorporated herein as Exhibit A, in this Resolution; and WHEREAS, notice of the abatement costs were given to the owners of record of said properties, and any timely requested hearing has heretofore been held to hear protests of the costs of said abatement before the Administrative Hearing Office, who determined the owner of record is responsible for the costs. 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. Said costs are found to have been incurred by the City pursuant to proceedings under the San Bernardino Municipal Code, and the final statement of costs on file with the City Clerk is hereby confirmed and adopted as special assessments against the properties lists in Exhibit A. SECTION 3. Said sum shall become a lien on said property pursuant to San Bernardino Municipal Code 8.30.050 and shall be collected as a special assessment. SECTION 4. The City Clerk is hereby directed to file a certified copy of this Resolution, including Exhibit A, showing such sums as remained unpaid, to the Recorder and the Auditor of the County of San Bernardino, State of California, directing that each sum be entered as a lien charged against the property as it appears on the current assessment rolls, to be collected at the said time and in the same manner, subject to the same penalties and interest upon delinquencies, as the general taxes for the City of San Bernardino are collected. SECTION 5. 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.   Packet Pg. 643 Resolution No. 2022-209 Resolution 2022-209 October 5, 2022 Page 2 of 3 1 0 9 5 6 7 3 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 5th day of October, 2022. John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 644 Resolution No. 2022-209 Resolution 2022-209 October 5, 2022 Page 3 of 3 1 0 9 5 6 7 3 CERTIFICATION STATE OF CALIFORNIA) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No.2022- 209, adopted at a regular meeting held at the 5th day of October, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2022. ___________________________________ Genoveva Rocha, CMC, City Clerk   Packet Pg. 645 EXHIBIT "A" ABATEMENT ASSESSMENTS ADDRESS OWNER Hearing Order WARD COST Total:$0.00 OTHER ABATEMENT ASSESSMENTS ADDRESS OWNER DATE ABATED WARD COST 432 W. Highland Ave.SARWAR, SALEH/MEHERUN 08/25/21 7 $1,301.15 780 Inland Center Dr.MIN FAN INVESTMENT LLC 09/10/21 3 $489.25 1602 W. Highland Ave.BHATTI FAMILY TRUST 10/26/17 11/12/21 6 $336.00 777 E. Hospitality Ln. PADILLA, TONY & ARMIDA TR 4-19-02 10/30/21 3 $328.00 1184 W. 2nd St. Unit 207 LA PLACITA ON 2ND ST LLC 12/04/21 1 $549.95 660 E. Baseline AUTOZONE INC 11/09/21 2 $370.00 162 E. King St.GOODE, JOSEPH A/LAMAR, LILLIE M.12/15/21 1 $1,514.87 1450 N. Waterman Ave.HAN, SHELLY 02/09/22 2 $167.70 3155 N. E St. NNNDG18 LLC 01/31/22 7 $2,669.99 505 W. 2nd St. WF SAN BERNARDINO LLC 05/03/22 1 $314.60 Total:$8,041.51 Grand Total: $8,041.51   Packet Pg. 646 8 0 8 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager; Nathan Freeman, Agency Director of Community, Housing, and Economic Development Department:Community, Housing, & Economic Development (CED) Subject:Settlement and Release Agreement with Montecito Equities, Ltd. Recommendation: Authorize the City Manager, or his designee, to execute the Settlement and Release Agreement with Montecito Equities, Ltd. Background In March of 2013, the City of San Bernardino approved the Spring Trails Specific Plan, which included a variety of underlying entitlements. The Specific Plan approvals included the adoption of Resolution No. 2013-34 that certified the Final Environmental Impact Report, the adoption of a Mitigation Monitoring and Reporting Plan, the adoption of a General Plan Amendment (including the pre-annexation of the Specific Plan Area), the approval of Tentative Tract Map No. 15576, and the approval of a Development Agreement. In March of 2015, Montecito Equities, Ltd., (“Montecito”), which is the owner and developer of the Spring Trails Specific Plan Project, filed a Landowner Petition for annexation with the San Bernardino County Local Area Formation Commission (“LAFCO”). Since that time, Montecito has been working with LAFCO seeking approval of the annexation of the Spring Trails Plan Project area into the City of San Bernardino. In October of 2019, LAFCO adopted Resolution No. 3091 approving the annexation of the Spring Trails Specific Plan Project area into the City of San Bernardino subject to the certain conditions of approval. During the processing of the annexation, there was a 26-acre area including 6 parcels that was removed from the annexation that created an unincorporated island surrounded by the City of San Bernardino. This area was removed because the registered voters occupying the six single-family residences located within the Spring Trails Specific Plan Project area had vocally opposed the Spring Trails Specific Plan Project, and it was unlikely that the annexation of the entire   Packet Pg. 647 8 0 8 area, including the island, would be successful. As a result, the annexation continued without the unincorporated island area (Attachment 1, Location Map – Remaining Unincorporated Island). With respect to the above-mentioned conditions of approval, LAFCO imposed Condition of Approval No. 4, which states the following: “The City of San Bernardino is required to initiate annexation of the totally surrounded island within one year of the Commission’s approval of LAFCO 3188A. A resolution by the City Council of the City of San Bernardino shall be submitted to the Executive Officer of LAFCO outlining the City’s commitment to fulfilling this requirement prior to the issuance of the Certificate of Completion for LAFCO 3188A. A status report shall be provided to the Commission at the six-month date outlining the progress of the City of San Bernardino in fulfilling its obligation. Failure on the part of the City of San Bernardino to fulfill its commitment to annex the totally surrounded island shall require that the next annexation proposed to the City of San Bernardino, either by the City through resolution or by property owner/registered voter petition to include a condition requiring the initiation of annexation of the totally surrounded island. Said condition of approval shall be deemed completed upon the issuance of the Certificate of Filing for said island.” The above Condition of Approval No. 4 imposed by LAFCO holds the Certificate of Completion for LAFCO Annexation No. 3188A (Spring Trails Specific Plan Project Area) on hold until (a) the City of San Bernardino Mayor and City Council adopt a resolution identifying its commitment to annex the 26-acre unincorporated island area at some time in the future, and (b) the City of San Bernardino submits a copy of the adopted resolution to the Executive Officer of LAFCO. In essence, Condition of Approval No. 4 places a hold on Montecito’s ability to proceed with the construction of their project until after the City Council adopts a resolution confirming its intent to annex the unincorporated island area into the City of San Bernardino at some time in the future. In January and March of 2020, the Mayor and City Council considered the adoption of a Resolution of Intent to annex the unincorporated island area. However, the matter was continued by the Mayor and City Council indefinitely on both occasions. Montecito has continued to request that the City honor its commitments under the Development Agreement and assist Montecito in fulfilling LAFCO’s approval of annexation due to the City’s failure to adopt a Resolution of Intent within the designated one-year period as necessary for LAFCO to issue its Certificate of Completion. In November of 2020, Montecito provided formal notice under the Government Claims Act of its claims for monetary damages against the City in connection with the City’s failure and refusal to honor its obligations under the Development Agreement approved as part of the 2103 Specific Plan approvals to “assist Montecito in obtaining all third- party governmental and non-governmental agencies’ permits and approvals which are necessary for the development of the Spring Trails Specific Plan Project. Montecito has alleged, in its Claim Notice, that the City’s actions in refusing to adopt the   Packet Pg. 648 8 0 8 Resolution of Intent and instead continuing the matter indefinitely and beyond the one year period required by the Condition resulting in LAFCO’s termination of the October 16, 2019 annexation approval constituted (1) a breach of the Development Agreement and a violation of Montecito’s constitutional rights under 42 U.S.C. section 1983 entitling Montecito to significant monetary damages and (2) as well as taking with the payment of just compensation as required by the Fifth Amendment of the U.S. Constitution and Article I, Section 19, of the California Constitution. On June 29, 2021, both parties entered into an agreement to toll the applicable limitations periods for filing a lawsuit under the Government Claims Act for a period of six months until January 2, 2022, in order to allow time for the parties to explore a potential informal resolution. On December 15, 2021, both parties amended the Tolling Agreement to further toll the applicable limitations periods for initiating a lawsuit under the Government Claims Act for a period of eighteen months until July 2, 2023. Discussion In order to rectify the aforementioned issues, staff and Montecito have jointly negotiated a Settlement and Release Agreement (Attachment 2). The Settlement and Release Agreement obligates the City to the following: •Annexation of the Project Area and Island Area: The City shall apply for and diligently process to completion with LAFCO two separate annexation proceedings for: (1) the Spring Trails Specific Plan Project Area; and (2) the Island Area (together the “Annexation Proceedings”). As part of this obligation, Montecito acknowledges and agrees that (i) any decisions by the City with respect to the Annexation Proceedings following application to LAFCO shall be subject to the discretion of the City Council and the City Council cannot obligate itself to make such decisions in advance; and (ii) LAFCO is an independent governmental agency whose ultimate approval of the Annexation Proceedings is discretionary and therefore neither certain nor a condition of performance under the Settlement and Release Agreement. •Bice Property Easement: The City will grant a non-exclusive secondary fire access only easement to Montecito over and across the Bice Property at a location and according to an alignment and subject to terms and conditions that are acceptable to both Montecito and the City (with the location of any such easement being at the sole and absolute discretion of the City). The Settlement and Release Agreement also obligates Montecito to the following: •Costs for annexation of the Project Area and Island Area: Montecito shall bear all costs associated with processing the annexation of the Project Area and Island Area through to completion at LAFCO. •Roadway and Storm Drain Improvements: Montecito shall commence the roadway and associated storm drain improvements located on the east side of the project site (the “Roadway”), pursuant to applicable permits and licenses   Packet Pg. 649 8 0 8 obtained from the City, such that the Roadway is the only primary access route for any and all purposes to the Project site, within the first phase development and before the commencement of construction on the Project site. •Reduction of Housing Units: Montecito shall reduce the number of homes to be constructed within the project from 307 units to 264 units, and bear all cost and expense associated with such reduction. •CEQA Compliance: Montecito shall take all actions necessary and appropriate, if any are required, at no costs or expense to the City and comply with the California Environmental Quality Act. 2021-2025 Strategic Targets and Goals Authorizing the City Manager, or his designee, to execute the Settlement and Release Agreement with Montecito Equities, Ltd. is consistent with Key Target No. 4: Economic Growth and Opportunity. Specifically, the area considered for annexation is within the City’s sphere of influence and has been anticipated for development as identified in the City’s comprehensive General Plan. Future in-fill development, such as that of the Spring Trails project, will be a catalyst to encourage new development in the City that will generate additional revenue. Fiscal Impact Authorizing the City Manager, or his designee, to execute the Settlement and Release Agreement with Montecito Equities, Ltd., does not require the expenditure of any General Fund revenue. Conclusion Authorize the City Manager, or his designee, to execute the Settlement and Release Agreement with Montecito Equities, Ltd. Attachments Attachment 1 Location Map – Remaining Unincorporated Island Attachment 2 Settlement and Release Agreement Ward: Fifth Ward Synopsis of Previous Council Actions: March 2013: The Mayor and City Council approved the Spring Trails Specific Plan and all other underlying entitlements. January 2020: The Mayor and City Council considered the adoption of a Resolution of Intent but the matter was continued. May 2020: The Mayor and City Council again considered the adoption of a Resolution of Intent but the matter was continued indefinitely.   Packet Pg. 650   Packet Pg. 651 55600.00100\34921062.3 1 SETTLEMENT AND RELEASE AGREEMENT This Agreement (“Agreement”) is entered into as of ____________, 2022 (“Effective Date”) by and between Montecito Equities, Ltd., a California Limited Partnership (“Montecito”), on the one part, and the City of San Bernardino (“City”), a California public agency, on the other part. Montecito and City are collectively referred to herein as the “Parties” and may be individually referred to as “Party.” RECITALS A. Montecito is the owner and developer of the Spring Trails Specific Plan Project (SP10-01), approved by the City in March 2013 (the “Project”). The Specific Plan approvals, which are final and fully-vested, include adoption of Resolution No. 2013-34; certification of the Final Environmental Impact Report (“FEIR”); adoption of the Mitigation Measuring and Reporting Plan (“MMRP”); adoption of General Plan Amendment No. GPA 02-09 (including pre- annexation of the Specific Plan area); Tentative Tract Map No. 15576; and approval of the corresponding Development Agreement (collectively, the “Specific Plan Approvals”). B. On October 16, 2019, the San Bernardino County Local Agency Formation Commission (“LAFCO”) adopted Resolution No. 3091 approving the annexation of the Project (LAFCO Annexation No. 3188A) into the City, subject to certain conditions of approval. The annexation resulted in the creation of a 26-acre totally-surrounded island area comprised of six (6) parcels that, although receiving the bulk of its municipal services from the City (except for fire), will continue to remain a part of unincorporated County of San Bernardino (the “Island Area”) until eventually annexed into the City. C. With respect to the Island Area, the conditions of approval imposed by LAFCO on the Project’s annexation included Condition No. 4 (the “Condition”), which effectively holds the Certificate of Completion for annexation of the Project in abeyance unless and until (i) the City Council adopts a resolution “outlining the City’s commitment” to annex the Island Area at some point in the future (“Resolution of Intent”) and (ii) provides the adopted resolution to LAFCO’s Executive Officer. D. The City Council considered adoption of the Resolution of Intent at a hearing on January 15, 2020, and again on May 6, 2020; however, the matter was continued indefinitely by the City Council on both occasions. Montecito continued to ask the City to honor its commitments under the Development Agreement and assist Montecito in fulfilling LAFCO’s Condition and complete annexation of the Project; however, the City failed and refused to do so. E. As a result of the foregoing, on November 9, 2020, the Executive Officer of LAFCO adopted Resolution No. 3317 terminating LAFCO’s approval of annexation of the Project due to the City’s failure to adopt the Resolution of Intent within the designated one (1) year period, as necessary for LAFCO to issue the Certificate of Completion for the Project under the Condition. F. On November 20, 2020, Montecito provided formal notice under the Government Claims Act (Gov. Code, §§ 810, et seq.) (the “Act”) of Montecito’s claims for monetary damages against the City in connection with the City’s failure and refusal to honor its obligations under the   Packet Pg. 652 55600.00100\34921062.3 2 Development Agreement approved as part of the 2013 Specific Plan Approvals to “assist Montecito in obtaining all third-party governmental and non-governmental agencies’ permits and approvals which are necessary for the Development of the Property” (the “Claim Notice”). (Dev. Agreement, § 3.9.) Montecito alleged in the Claim Notice that the City’s actions in refusing to adopt the Resolution of Intent and instead continuing the matter indefinitely and beyond the one (1) year period required by the Condition resulting in LAFCO’s termination of the October 16, 2019, annexation approval constituted (a) a breach of the Development Agreement and a violation of Montecito’s constitutional rights under 42 U.S.C. section 1983 entitling Montecito to significant monetary damages (b) as well as a taking without the payment of just compensation as required by the Fifth Amendment of the U.S. Constitution and Article I, Section 19 of the California Constitution (collectively, the “Claim”). G. The City disputes Montecito’s Claims and the allegations raised in the Claim Notice. H. On June 29, 2021, the Parties entered into an agreement to toll the applicable limitations periods for initiating a lawsuit under the Act for a period of six (6) months until January 2, 2022, in order to allow time for the parties to explore a potential informal resolution of the Claim (“Tolling Agreement”). I. On December 15, 2021, the Parties amended the Tolling Agreement to further toll the applicable limitations periods for initiating a lawsuit under the Act for a period of eighteen (18) months until July 2, 2023. J. The Parties, without in any way conceding fault or the validity or sufficiency of any claim or contention of any or all the Parties, now desire to fully compromise, finally settle, and fully release all claims, disputes and differences related to the Claim and Claim Notice. NOW, THEREFORE, in consideration of the mutual covenants, promises and conditions set forth below, and as full and complete compromise and settlement of any and all legally applicable claims, including but not limited to the Claim, Montecito and City, and each of them, agree as follows: AGREEMENT 1. Incorporation of Recitals. The foregoing Recitals are incorporated by this reference as though fully set forth at length. 2. City Obligations. City shall: 2.1. Annexation of Project Area and “Island Area”. Apply for and diligently process to completion with the San Bernardino County LAFCO two separate annexation proceedings for: (1) the Spring Trails Specific Plan Project area; and (2) the “Island Area” (together, the “Annexation Proceedings”). Montecito expressly acknowledges and agrees that (i) any decisions by the City with respect to the Annexation Proceedings following application to LAFCO, shall be subject to the discretion of the City Council and the City Council cannot obligate itself to make such decisions in advance; and (ii) LAFCO is an independent governmental agency whose ultimate approval of the Annexation Proceedings is discretionary and therefore neither   Packet Pg. 653 55600.00100\34921062.3 3 certain nor a condition of performance under this Agreement. City shall file such applications within sixty (60) days of the Effective Date. 2.2. [Intentionally Deleted.] 2.3. Bice Property Easement. Grant a non-exclusive secondary fire access- only easement to Montecito over and across the Bice Property at a location and according to an alignment and subject to terms and conditions that are acceptable to both Montecito and the City. Ultimately, the location of any such easement shall be at the sole and absolute discretion of the City. 3. Montecito Obligations. As full and complete settlement of the Claim and Claim Notice, Montecito shall: 3.1.1. Costs for Annexation of Project Area and “Island Area”. Bear all costs associated with processing the annexation of the Project and the “Island Area” through to completion at LAFCO. 3.1.2. Roadway and Storm Drain Improvements. Commence the roadway and associated storm drain improvements located on the east side of the Project site (the “Roadway”), pursuant to applicable permits and licenses obtained from the City, such that the Roadway is the only primary access route for any and all purposes to the Project site, within the first phase of development and before the commencement of construction on the Project site. 3.1.3. Reduction of Housing Units. Reduce the number of homes to be constructed within the Project from 307 units to 264 units, and bear all cost and expense associated with such reduction. 3.1.4. CEQA Compliance. In light of the proposed changes to the Project contemplated in this Agreement that were not considered in the FEIR or accounted for in the MMRP, take all actions necessary and appropriate, if any are required, at no cost or expense to the City (including City’s reasonable attorneys’ fees, which shall be reimbursed by Montecito), to comply with the California Environmental Quality Act (Pub. Res. Code § 21000 et seq.) (“CEQA”). 4. Mutual Releases. Upon completion of the Annexation Proceedings (including no successful protest and issuance of a certificate of completion by LAFCO), the Parties shall deliver to one another mutual releases in the form of Exhibit “A” attached hereto and incorporated herein by this reference. 5. Notice. Any notice, request, or communication required to be given to either Party under this Agreement shall be given in writing and shall be personally delivered or mailed by prepaid registered or certified mail to the addresses below: If to City: City of San Bernardino Attn: Robert D. Field, City Manager 290 North D Street San Bernardino, CA 92401   Packet Pg. 654 55600.00100\34921062.3 4 With Copy to: Best Best & Krieger Attn: Sonia Carvalho, Esq., City Attorney 18101 Von Karman Ave., Suite 1000 Irvine, CA 92612 If to Montecito: Gresham Savage Nolan Tilden, PC Attn: Mark A. Ostoich, Esq. 550 E. Hospitality Drive, Suite 300 San Bernardino, CA 92408 6. No Admission of Liability. Nothing herein shall be deemed to imply, constitute, or be construed as an admission of any liability, breach of contract, commission of any tort, or any other civil wrongdoing on behalf of either Party. 7. Montecito’s Remedy. Montecito’s sole and exclusive remedy upon City’s failure to fulfill any of its obligations under this Agreement shall be to take action against the City in accordance with its Claim and Claim Notice. Accordingly, Montecito’s time to prosecute its Claim and Claim Notice is hereby tolled until the earlier to occur of (a) the City’s fulfillment of its obligations under this Agreement; or (b) December 31, 2023. 8. Entire Agreement, Modifications and Waiver. This Agreement constitutes the entire agreement between the Parties and the Parties acknowledge that they have not executed this instrument in reliance on any promise or representation or warranty not contained herein. This Agreement supersedes and replaces all prior settlement negotiations and/or proposed settlements. This Agreement may not be contradicted by evidence of any prior or contemporaneous oral or written agreement. No alteration, supplement, modification, or amendment of this Agreement shall be binding unless executed in writing by all of the Parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. 9. Applicable Law, Jurisdiction and Venue. This Agreement shall be deemed to have been entered into and shall, in all respects, be interpreted, construed, enforced, and governed by and under the laws of the State of California. The San Bernardino County Superior Court shall have jurisdiction over the Parties as to the matters presented herein. 10. Jointly Drafted. It is agreed between the Parties that this Agreement was jointly negotiated and jointly drafted by all the Parties hereto and that it shall not be interpreted or construed in favor or against any Party on the ground that said Party drafted the Agreement. It is also agreed and represented by the Parties that this Agreement was the result of extended negotiations between the Parties and that each of the Parties were of equal or relatively equal bargaining power. In no way whatsoever shall it be deemed that this Agreement is a contract of adhesion, is unreasonable or unconscionable, or that any Party entered into this Agreement under duress, including physical, mental, or economic duress. The language of this Agreement shall be construed as a whole according to its fair and logical meaning and not strictly for or against any of the Parties.   Packet Pg. 655 55600.00100\34921062.3 5 11. Section Headings, Gender, and Syntax. The section and paragraph headings contained in this Agreement are for reference purposes only and shall not affect in any way the construction or interpretation of this Agreement. Whenever in this Agreement the context so requires, the masculine or feminine or neuter gender and the singular and plural number shall be deemed to refer and include the other. 12. Independent Legal Counsel. The Parties hereby acknowledge that they have had the opportunity and have in fact retained legal counsel of their own choice throughout all of the negotiations which preceded the execution of this Agreement and with regard to execution of this Agreement and the documents necessary to carry out its terms. 13. Binding Agreement. The Parties hereto represent and warrant that they each have the authority to execute this Agreement and the related documents and to bind the entity for which they are signing. This Agreement shall be binding on and inure to the benefit of the Parties hereto and their respective heirs, legal representatives, successors, assigns, executors, and administrators. 14. Severability. If any provision of this Agreement is held invalid or unenforceable, in whole or in part, by any court of final jurisdiction, it is the intent of the Parties that all other provisions of this Agreement be construed to remain fully valid, enforceable, and binding on the parties in all respects as if such invalid or unenforceable provision were omitted. Any court of final jurisdiction will have the authority to modify or replace the invalid or unenforceable term or provision with a valid and enforceable term or provision that most accurately represents the intention of the Parties. 15. Counterparts, Fax, and Electronic Transmission. This Agreement may be executed in counterparts and exchanged by facsimile, email or other electronic means, and all originals, copies, facsimiles, or electronic counterparts, when taken together, shall be valid as one instrument and may be used as an original for any purpose. 16. Authorization. Any Party signing this Agreement on behalf of an entity hereby represents and warrants that such Party has authority to sign on behalf of the indicated entity. IN WITNESS WHEREOF, the Parties have entered into this Settlement Agreement and Mutual Release as of the Effective Date hereof. MONTECITO EQUITIES, LTD., a California Limited Partnership By:_________________________________ Name:_______________________________ Its:__________________________________ Dated:_______________________________   Packet Pg. 656 55600.00100\34921062.3 6 CITY OF SAN BERNARDINO, a California public agency By:_________________________________ Name:_______________________________ Its:__________________________________ Dated:_______________________________   Packet Pg. 657 55600.00100\34921062.3 EXHIBIT “A” MUTUAL RELEASES In consideration of the covenants and obligations set forth in this Agreement, the Parties, for themselves and for all persons who at any time have acted by, through, under, or in concert with the Parties, now irrevocably and unconditionally remise, release, acquit, absolve and forever discharge one another, and all persons who at any time have acted by, through, under, or in concert with the Parties, including, but not limited to their heirs, direct and indirect parents, subsidiaries, partners, agents, contractors, joint ventures, affiliates, related entities, and each of their officers, directors, past or present employees, principals, representatives, attorneys, and shareholders, of and from any and all causes of action in law or in equity, debts, contracts, charges, complaints, claims, suits, damages, obligations, promises, agreements, losses, costs, controversies, judgments, and expenses, of every kind whatsoever, whether known or unknown, fixed or contingent, direct or derivative, subrogated or assigned, suspected or unsuspected, that the Parties have or may have, or that they at any time previously had or claimed to have, or that they at any time subsequently may have or claim to have, against each other by reason of any matter, cause, act, omission, or thing whatsoever arising out of or relating to the Claim or Claim Notice (collectively, the “Released Claims”). This release does not release either party from its obligations set forth in this Agreement. The Parties hereby acknowledge that they understand the meaning of Section 1542 of the Civil Code of the State of California, which provides as follows: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.” With respect to the matters released herein, and subject to the terms and obligations set forth above, the Parties expressly waive and relinquish any right or benefit which they now have, or may in the future have, under Section 1542 of the Civil Code. In furtherance of such intention, the releases herein given shall be and remain in effect as full and complete releases notwithstanding the discovery or existence of any such additional or different claims or facts.   Packet Pg. 658 7 9 0 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager; Barbara Whitehorn, Agency Director of Administrative Services Department: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 September 2022. 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: https://sbcity.org/city_hall/finance/warrant_register Discussion Gross Payroll Bi-Weekly for September 1, 2022 $3,327,501.48 Bi-Weekly for September 15, 2022 $2,713,962.84 Monthly for September 15, 2022 $11,666.69 Total Payroll Demands: $6,053,131.01   Packet Pg. 659 7 9 0 2021-2025 Strategic Targets and Goals Approval of the noted check and EFT registers for commercial and payroll disbursements align with Key Target No. 1: Improved Operational & Financial Capacity by creating a framework 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 approve the commercial and payroll disbursements for September 2022. Attachments Attachment 1 Payroll Summary Report for September 2022 Attachment 2 Commercial checks & Payroll Register #9 Attachment 3 Commercial checks & Payroll Register #10 Attachment 4 Commercial checks & Payroll Register #11 Attachment 5 Commercial checks & Payroll Register #12 Attachment 6 Commercial EFT Registers #1348-1352 Ward: All Wards Synopsis of Previous Council Actions: None The following check registers are being presented for approval: September 1, 2022 2022/23 (Regi ster #9)$1,575,500.45 September 2, 2022 2022/23 (Regi ster #10)$19,999.00 September 8, 2022 2022/23 (Regi ster #11)$574,442.24 September 15, 2022 2022/23 (Regi ster #12)$3,470,085.57 Total commercial check demands:$5,640,027.26 The following Electroni c Funds Transfer (EFT) regi sters presented for approval: August 18 to August 29, 2022 2022/23 (Regi ster #1348-#1352) $ 1,304,746.45 Total commercial EFT demands: $ 1,304,746.45   Packet Pg. 660   Packet Pg. 661   Packet Pg. 662   Packet Pg. 663   Packet Pg. 664   Packet Pg. 665   Packet Pg. 666   Packet Pg. 667   Packet Pg. 668   Packet Pg. 669   Packet Pg. 670   Packet Pg. 671   Packet Pg. 672   Packet Pg. 673   Packet Pg. 674   Packet Pg. 675   Packet Pg. 676   Packet Pg. 677   Packet Pg. 678   Packet Pg. 679   Packet Pg. 680   Packet Pg. 681   Packet Pg. 682   Packet Pg. 683   Packet Pg. 684   Packet Pg. 685   Packet Pg. 686   Packet Pg. 687   Packet Pg. 688   Packet Pg. 689   Packet Pg. 690   Packet Pg. 691   Packet Pg. 692   Packet Pg. 693   Packet Pg. 694 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;695 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;696 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;697 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;698 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;699 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;700 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;701 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;702 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;703 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;704 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;705 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;706 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;707 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;708 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;709 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;710 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;711 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;712 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;713 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;714   Packet Pg. 715   Packet Pg. 716 7 6 9 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager; Barbara Whitehorn, Agency Director of Administrative Services Department:Finance Subject:Investment Portfolio Report for July 2022 (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 July 2022. 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 July 31, 2022. 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. 2021-2025 Strategic Targets and Goals The acceptance and filing of the attached Investment Portfolio Report aligns with Key Target No. 1: Improved Operation and Financial Capacity 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.   Packet Pg. 717 7 6 9 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 July 2022. Attachments Attachment 1 - Investment Portfolio Management Summary Report July 2022 Ward: All Wards Synopsis of Previous Council Actions: None   Packet Pg. 718   Packet Pg. 719   Packet Pg. 720   Packet Pg. 721   Packet Pg. 722   Packet Pg. 723   Packet Pg. 724   Packet Pg. 725   Packet Pg. 726   Packet Pg. 727   Packet Pg. 728 7 4 1 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager; Rolland Kornblau, Director of Information Technology Department:Information Technology Subject:Execute Annual Professional Service Agreements with Solutions Simplified, NPA Computers, ATEL Communications and a two-year agreement with NeoGov Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, execute Annual Professional Services Agreements for software and hardware usage fees between the City of San Bernardino and Solutions Simplified for DocuSign Software Services, NAP Computers, ATEL Communications, and the two- year renewal service agreement with Governmentjobs.com, Inc., DBA NeoGov for approximately $217,000. Background The City of San Bernardino has continued to upgrade its technology infrastructure, improving the efficiency, effectiveness, reliability, and productivity of both internal and external processes. Renewing the agreements is necessary to continue implementing technological innovations city-wide, for troubleshooting support, and fixes of current hardware and software malfunctions, which will result in improving the usability of products for continued organizational proficiency. Discussion Staff is requesting authorization for four (4) ongoing Annual Professional Services Agreements for software and hardware usage fees. Expected annual costs are based   Packet Pg. 729 7 4 1 on a fixed annual amount provided by the vendors. The annual renewal quotes are enclosed for Solutions Simplified for Docusign electronic signatures, NPA Computers for computer hardware maintenance that is out of warranty, ATEL Communications for city wide phone support, and a two-year quote for Governmentjobs.com, Inc., DBA NeoGov for human resources employment listing. VENDOR PRODUCT EXPECTED AMOUNT Solutions Simplified DocuSign $75,640.00 NPA Computers Out of Warranty Maintenance $35,880.00 ATEL Communications Telephone Support $48,643.64 NeoGov Recruitment System $55,880.97 Total $216,044.61 2021-2025 Key Strategic Targets and Goals Authorization of these agreements align with Key Target No. 2: Focused, Aligned Leadership and Unified Community. Software and hardware applications are maintained to achieve operational efficiencies and support the organizational effectiveness of evolving processes. Fiscal Impact The cost of the annual agreements has been included in the adopted FY 2022/23 budget. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, execute Annual Professional Services Agreements for software and hardware usage fees between the City of San Bernardino and Solutions Simplified for DocuSign Software Services, NPA Computers, ATEL Communications, and the two- year renewal service agreement with Governmentjobs.com, Inc., DBA NeoGov for approximately $217,000. Attachments Attachment 1 ATEL PSA Annual Maintenance Attachment 2 ATEL Software Assurance Quote Attachment 3 Docusign Renewal Quote Attachment 4 NeoGov Service Agreement Attachment 5 NPA Computers PSA - 2022 Attachment 6 NPA Exhibit A Attachment 7 Resolution 2020-139 Attachment 8 Resolution 2021-233 Ward All Wards Synopsis of Previous Council Actions   Packet Pg. 730 7 4 1 September 15, 2021 Mayor and City Council adopted Resolution No. 2021-233, approving an agreement with Solutions Simplified for DocuSign Software Services. June 17, 2020 Mayor and City Council adopted Resolution No. 2020-139, approving an agreement with NPA Computers for annual usage for software and hardware maintenance.   Packet Pg. 731 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND ATEL COMMUNICATIONS This Agreement is made and entered into as of September 21, 2022 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, CA 92401 ("City"), and ATEL COMMUNICATIONS, a California Corporation with its principal place of business at 844 7 Miramar Mall, San Diego, CA. 92121 (hereinafter referred to as "Consultant"). CITY and CONSUL TANT are hereinafter sometimes referred to individually as "Party" and collectively as the "Parties." RECITALS A. City is a public agency of the State of California and is in need of professional services for the following project: PBX hardware maintenance and technical services (hereinafter referred to as "the Project"). B. Consultant is duly licensed and has the necessary qualifications to provide such services. C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein. NOW, THEREFORE, IT 15 AGREED AS FOLLOWS: AGREEMENT 1.Incorporation of Recitals. The recitals above are true and correct and are hereby incorporated herein by this reference. 2.Services. Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit "A." 3.Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel identified in their proposal. Consultant warrants that Consultant is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant's performance of this Agreement. Consultant further represents that no City employee will provide any services under this Agreement. 4.Compensation. a.Subject to paragraph 4(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit "A." 1   Packet Pg. 732   Packet Pg. 733   Packet Pg. 734   Packet Pg. 735   Packet Pg. 736   Packet Pg. 737   Packet Pg. 738   Packet Pg. 739   Packet Pg. 740   Packet Pg. 741   Packet Pg. 742   Packet Pg. 743   Packet Pg. 744   Packet Pg. 745   Packet Pg. 746   Packet Pg. 747   Packet Pg. 748   Packet Pg. 749 QUOTE Software Assurance 2022-2023 18143 City of San Bernardino Account#Rolland KornblauKathy Faulkner ATEL Representative Customer Representative 15350 201 North E Street, San Bernardino, CA 92401 Tel: (909) 384-5947 Reference# QTY DESCRIPTION Software Assurance is a required component on all current NEC products in order to receive bug fixes, software upgrades and technical support. Coverage includes at least two software upgrades a year. Software Assurance is an annual recurring cost that protects your investment, ensures your software is always current and provides priority access to support services and technical resources SOFTWARE ASSURANCE NEC SV9500 CCDesign UM4730 NEC SWA PSA SV95 UNIT 947 SWA SV95 REINSTATEMENT FEE 474 NEC SWA PSA CCDesign Unit 155 Q24-DN000000110321 - SWA CCDESIGN REINSTATEMENT FEE 78 SWA PSA UMH UNIT 147 Q24-DN000000110758 - SWA SV9X UMH REINSTATEMENT FEE 74 One (1) Year Support NEC software assurance contract for your SV9500 system, CCDesign and UM4730 expired on 7/31/2022. Your NEC SWA has expired. initials Net Sale Price Good Through Saturday, October 29, 2022$27,643.64 $0.00 0.00%Sales Tax $27,643.64 Total Sale 15350 Page 1 of 2Monday, August 15, 2022Reference#12:00:00 am 8447 Miramar Mall, San Diego, CA 92121 - 2522 Tel: (858) 646-4600 Fax: (858) 646-4680 Service Direct: (858) 646-4646 www.atelcommunications.com sales@atelcommunications.com service@atelcommunications.com   Packet Pg. 750 ATEL Standard Terms and Conditions apply. Customer is aware of those Terms and Conditions and agrees to them. ATEL Communications, Inc. By ____________________________________ Signature ____________________________________ By ____________________________________ Signature ____________________________________ City of San Bernardino Date: _________________________ 15350 Page 2 of 2Monday, August 15, 2022Reference#12:00:00 am 8447 Miramar Mall, San Diego, CA 92121 - 2522 Tel: (858) 646-4600 Fax: (858) 646-4680 Service Direct: (858) 646-4646 www.atelcommunications.com sales@atelcommunications.com service@atelcommunications.com   Packet Pg. 751 Solutions Simplified 3626 Fair Oaks Blvd. Suite 100 Sacramento, CA 95864 www.solutionssimplified.net Date: A Certified Woman-Owned Business Quote #: Valid Until: Prepared By: Rachel DaValle FEIN:47-5088841 Phone: 530-521-0576 Seller's Permit:102-806808 Fax: 916-244-0351 DUNS:80004788 Email: rachel.davalle@solutionssimplified.net CAGE:7GNN0 CUSTOMER Precious Carter Delivery:Electronic City of San Bernardino FOB:Destination, Freight PPD 300 N D St Payment Terms:Net 45 San Bernardino, CA 92418 USA Contract #: carter_pr@sbcity.org (909) 384-5086 ITEM #PART #DESCRIPTION QTY UNIT PRICE EXT PRICE TAXED 1 APT-0488 20000 $3.10 $62,000.00 N 2 APT-0148 1 $13,640.00 $13,640.00 N Subtotal $75,640.00 NOTES:Tax Rate 8.75% 1. This quote is valid for 30 days from original quote date Tax $0.00 unless otherwise specified above.Total $75,640.00 2. We accept Purchase Order, Visa, Mastercard, & AMEX. 3. Orders placed on a credit card are subject to a 3% fee. 4. Our product return window is 30 days from receipt of order. THANK YOU FOR YOUR BUSINESS! QUOTE 8/5/2022 10384 9/30/2022 Please contact us if you have any questions or need further information. DocuSign Enterprise Pro for Gov - Env DocuSign, Inc. - APT-0488 Start Date: 10/01/2022 End Date: 09/30/2023 Enterprise Premier Support 22% of Recurring Fees (22% of List Price per $100 of List License Fees) DocuSign, Inc. - APT-0148 Start Date: 10/01/2022 End Date: 09/30/2023   Packet Pg. 752 1 NEOGOV ORDER FORM NEOGOV: Governmentjobs.com, Inc. (dba “NEOGOV”) 300 Continental Blvd., Suite 565 El Segundo, CA 90245 billing@neogov.com Customer Name & Address: San Bernardino, City of (CA) 290 North D Street San Bernardino, CA 92401 USA Quote Creation Date: 12/08/2021 Contact Name: Glenn Cline Quote Expiration Date: 30 days from Quote Creation Contact Email: cline_gl@sbcity.org Payment Terms Annual. Net 30 from NEOGOV invoice. FTE: Fee Summary Service Description Term Term Fees Customer Background Check Integration 12/15/2022 - 12/14/2023 $1,685.40 Customer Background Check Integration 12/15/2023 - 12/14/2024 $1,786.52 Biddle Software 09/01/2022 - 08/31/2023 $4,538.57 Biddle Software 09/01/2023 - 08/31/2024 $4,765.50 Insight Subscription 08/01/2022 - 07/31/2023 $18,073.96 Insight Subscription 08/01/2023 - 07/31/2024 $19,248.77 Governmentjobs.com Subscription 08/01/2022 - 07/31/2023 $2,800.12 Governmentjobs.com Subscription 08/01/2023 - 07/31/2024 $2,982.13 2022 Total: $27,098.05 2023 Total: $28,782.92 Total: $55,880.97 A. Terms and Conditions 1. Agreement. This Ordering Document and the Services purchased herein are expressly conditioned upon the acceptance by Customer of the terms of the NEOGOV Services Agreement either affixed hereto or the version most recently published prior to execution of this Ordering Form available at https://www.neogov.com/service-specifications. Unless otherwise stated, all capitalized terms used but not defined in this Order Form shall have the meanings given to them in the NEOGOV Services Agreement. 2. Effectiveness & Modification. Neither Customer nor NEOGOV will be bound by this Ordering Document until it has been signed by its authorized representative (the “Effective Date”). Unless otherwise stated, all SaaS Subscriptions shall commence on the Effective Date. This Order Form may not be modified or amended except through a written instrument signed by the parties. 3. Summary of Fees. Listed above is a summary of Fees under this Order. Once placed, your order shall be non-cancelable and the sums paid nonrefundable, except as provided in the Agreement. 4. Order of Precedence. This Ordering Document shall take precedence in the event of direct conflict with the Services Agreement, applicable Schedules, and Service Specifications. B. Special Conditions (if any).   Packet Pg. 753 2 IN WITNESS WHEREOF, the parties have caused this Order to be executed by their respective duly authorized officers as of the date set forth below, and consent to the Agreement. Customer Governmentjobs.com, Inc. (DBA “NEOGOV”) Entity Name: Signature: Signature: Print Name: Print Name: Date: Date: Mike Burns 8/9/2022   Packet Pg. 754 1 VENDOR SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND NPA COMPUTERS, INC. This Agreement is made and entered into as of September 21st, 2022 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, CA 92401 (“City”), and NPA Computers, Inc., a New York Corporation with its principal place of business at 751 Coates Avenue, Holbrook, NY 11741 (hereinafter referred to as “Consultant”). City and Consultant are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.” RECITALS A.City is a public agency of the State of California and is in need of vendor services for the following project: Services Agreement (hereinafter referred to as “the Project”). B.Consultant is duly licensed and has the necessary qualifications to provide such services. C.The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein. NOW, THEREFORE, IT IS AGREED AS FOLLOWS: AGREEMENT 1.Incorporation of Recitals. The recitals above are true and correct and are hereby incorporated herein by this reference. 2.Services. Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A.” 3.Vendor Practices. All vendor services to be provided by Consultant pursuant to this Agreement shall be provided by personnel identified in their proposal. Consultant warrants that Consultant is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant’s performance of this Agreement. Consultant further represents that no City employee will provide any services under this Agreement. 4.Compensation. a.Subject to paragraph 4(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “A.” b.In no event shall the total amount paid for services rendered by   Packet Pg. 755 2 Consultant under this Agreement exceed the sum of $39,468. This amount is to cover all related costs, and the City will not pay any additional fees for printing expenses. Consultant may submit invoices to City for approval. Said invoice shall be based on the total of all Consultant’s services which have been completed to City’s sole sat isfaction. City shall pay Consultant’s invoice within forty-five (45) days from the date City receives said invoice. The invoice shall describe in detail the services performed and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as “Additional Services” and shall identify the number of the authorized change order, where applicable, on all invoices. 5.Additional Work. If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement. a.Adjustments. No retroactive price adjustments will be considered. Additionally, no price increases will be permitted during the first year of this Agreement, unless agreed to by City and Consultant in writing. Annual increases shall not exceed the percentage change in the Consumer Price Index- All urban consumers, All Items - (Series ID# CUURS49CSA0) Riverside-San Bernardino – Ontario, CA areas for the twelve (12) month period January through January immediately preceding the adjustments and be subject to City’s sole discretion and approved (if needed) for budget funding by the City Council. 6.Term. This Agreement shall commence on the Effective Date and continue through June 30, 2023 unless the Agreement is previously terminated as provided for herein (“Term”). 7.Maintenance of Records; Audits. a.Records of Consultant’s services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City for inspection and/or audit at mutually convenient times for a period of four (4) years from the Effective Date. b.Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City. 8.Time of Performance. Consultant shall perform its services in a prompt and timely manner and shall commence performance upon receipt of written notice from the City to proceed. Consultant shall complete the services required hereunder within Term.   Packet Pg. 756 3 9.Delays in Performance. a.Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects the Consultant’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 services); and (4) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety. b.Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, gi ve written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Delays shall not entitle Consultant to any additional compensation regardless of the Party responsible for the delay. c.Notwithstanding the foregoing, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement. 10.Compliance with Law. a.Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements. b.If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies. c.If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement. 11.Standard of Care. Consultant’s services will be performed in accordance with generally accepted practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the industry currently practicing under similar conditions. Consultant’s performance shall conform in all material respects to the requirements of the Scope of Work. 12.Conflicts of Interest. During the term of this Agreement, Consultant shall at all times maintain a duty of loyalty and a fiduciary duty to the City and shall not accept   Packet Pg. 757 4 payment from or employment with any person or entity which will constitute a conflict of interest with the City. 13.City Business Certificate. Consultant shall, prior to execution of this Agreement, obtain and maintain during the term of this Agreement a valid business registration certificate from the City pursuant to Title 5 of the City’s Municipal Code and any and all other licenses, permits, qualifications, insurance, and approvals of whatever nature that are legally required of Consultant to practice his/her profession, skill, or business. 14.Assignment and Subconsultant. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal e ffect and shall constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder. 15. Independent Consultant. Consultant is retained as an independent contractor and is not an employee of City. No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided. Any personnel performing the work governed by this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, and workers’ compensation insurance. 16.Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a.Additional Insured The City of San Bernardino, its officials, officers, employees, agents, and volunteers shall be named as additional insureds on Consultant’s and its subconsul tants’ policies of commercial general liability and automobile liability insurance using the endorsements and forms specified herein or exact equivalents. b.Commercial General Liability (i)The Consultant 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   Packet Pg. 758 5 acceptable to the City. (ii)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. (iii)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 (iv)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. (v)The policy shall give City, its elected and appointed officials, officers, employees, agents, and City-designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. (vi)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. c.Automobile Liability (i)At all times during the performance of the work under this Agreement, the Consultant 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. (ii)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).   Packet Pg. 759 6 (iii)The policy shall give City, its elected and appointed officials, officers, employees, agents and City designated volunteers additional insured status. (iv)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. d.Workers’ Compensation/Employer’s Liability (i)Consultant 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. (ii)To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant 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. Consultant 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. e.Professional Liability (Errors and Omissions) At all times during the performance of the work under this Agreement the Consultant 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 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 Consultant. “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. f.Privacy/Network Security (Cyber) At all times during the performance of work under this Agreement, the Designer shall maintain privacy/network security insurance, in a form and with insurance companies acceptable to the City, for: (1) privacy breaches, (2) s ystem breaches, (3) denial or loss of service, and (4) the introduction, implantation or spread of malicious software code. h.Minimum Policy Limits Required   Packet Pg. 760 7 (i)The following insurance limits are required for the Agreement: Combined Single Limit Commercial General Liability $2,000,000 per occurrence/$4,000,000 aggregate for bodily injury, personal injury, and property damage Automobile Liability $1,000,000 per occurrence for bodily injury and property damage Employer’s Liability $1,000,000 per occurrence Professional Liability $1,000,000 per claim and aggregate (errors and omissions) Cyber Liability $1,000,000 per occurrence and aggregate (ii)Defense costs shall be payable in addition to the limits. (iii)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. i.Evidence Required Prior to execution of the Agreement, the Consultant 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. j.Policy Provisions Required (i)Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement , except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of the premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Con sultant shall deliver   Packet Pg. 761 8 renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. (ii)The Commercial General Liability Policy and Autom obile Policy shall each contain a provision stating that Consultant’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. (iii)The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant 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. (iv)All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. (v)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 Consultant from liability in excess of such coverage, nor shall it limit the Consultant’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. k.Qualifying Insurers (i)All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements: (1)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 o therwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. l.Additional Insurance Provisions (i)The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities   Packet Pg. 762 9 and obligations otherwise assumed by the Consultant pursuant to this Agreement, including, but not limited to, the provisions concerning indemnification. (ii)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 necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. (iii)The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv)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. m.Subconsultant Insurance Requirements. Consultant 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 Consultant, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants. 17.Indemnification. a.To the fullest extent permitted by law, Consultant shall defend (with counsel reasonably approved by the City), indemnify and hold the City, its elected and appointed officials, officers, employees, agents, and authorized volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, (collectively, “Claims”) in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project, or this Agreement, including without limitation the payment of all damages, expert witness fees, attorneys’ fees and other related costs and expenses. This indemnification clause excludes Claims arising from the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, the City Council, members of the City Council, its employees, or authorized volunteers. Consultant’s indemnification obligation shall survive the expiration or earlier termination of this Agreement . b.If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code   Packet Pg. 763 10 section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to the extent which the Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant in the performance of the services or this Agreement, and, upon Consultant obtaining a final adjud ication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault. 18. California Labor Code Requirements. Consultant 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 othe r 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, Consultant agrees to fully comply with such Prevailing Wage Laws, if applicable. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 17 74 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 177 7.1). 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 Consultant and all subconsultants performing such Services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Dep artment of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. 19. Verification of Employment Eligibility. By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub-subconsultants to comply with the same. 20.Laws and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Bernardino, State of California. 21.Termination or Abandonment   Packet Pg. 764 11 a.City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days’ written notice to Consultant. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task co mpleted but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work. b.Consultant may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to City only in the event of substantial failure by City to perfo rm in accordance with the terms of this Agreement through no fault of Consultant. 22.Attorneys’ Fees. In the event that litigation is brought by any Party in connection with this Agreement, the prevailing Party shall be entitled to recover from the opposing Party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing Party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof. The costs, salary, and expenses of the City Attorney’s Office in enforcing this Agreement on behalf of the City shall be considered as “attorneys’ fees” for the purposes of this Agreement. 23.Responsibility for Errors. Consultant shall be responsible for its work and results under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation as may be required by the City’s representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Consultant’s services occurs, Consultant shall, at no cost to City, provide all other services necessary to rectify and correct the matter to the sole satisfaction of the City and to participate in any meeting required with regard to the correction. 24.Prohibited Employment. Consultant shall not employ any current employee of City to perform the work under this Agreement while this Agreement is in effect. 25.Costs. Each Party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein. 26. Documents. Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and beco me   Packet Pg. 765 12 the property of the City. 27. Organization. Consultant shall assign a designated Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City. 28.Limitation of Agreement. This Agreement is limited to and includes only the work included in the Project described above. 29.Notice. Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to the following addresses and shall be effective upon receipt thereof: CITY: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: City Manager With Copy To: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: City Attorney CONSULTANT: NPA Computers, Inc. Attn: Peter Aroniadis 751 Coates Avenue Holbrook, NY 11741 30.Third Party Rights. Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant. 31.Equal Opportunity Employment. Consultant 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 other interests protected by the State or Federal Constitutions. 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. 32.Entire Agreement. This Agreement, including Exhibit “A,” represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereu nder. Each Party acknowledges that no representations, inducements, promises , or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This is an integrated Agreement. 33.Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal, or unenforceable for any reason, such   Packet Pg. 766 13 determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance, and the remaining provisions of this Agreement shall remain in full force and effect. 34.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, Consultant 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. 35.Non-Waiver. The delay or failure of either Party at any time to require performance or compliance by the other Party of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. The waiver of any right or remedy with respect to any occurrence or event shall not be deemed a waiver of any right or remedy with respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver. 36.Time of Essence. Time is of the essence for each and every provision of this Agreement. 37.Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain, or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 38.Amendments. Only a writing executed by all of the Parties hereto or their respective successors and assigns may amend this Agreement. 39.City’s Right to Employ Other Consultants. City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects. 40.Prohibited Interests. Consultant maintains and warrants that it has neither employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant war rants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the awar d or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no official, officer or employee of City, during the term of his or her servic e with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.   Packet Pg. 767 14 41. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an origina l. All counterparts shall be construed together and shall constitute one single Agreement. 42.Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said Parties and that by doing so, the Parties hereto are formally bound to the provisions of this Agreement. 43.Electronic Signatures. Each Party acknowledges and agrees that this Agreement may be executed by electronic or digital signature, which shal l be considered as an original signature for all purposes and shall have the same force and effect as an original signature (iv)Termination of Contract. If the performance has not been corrected after all warnings and previous penalties have been exhau sted, City may terminate the contract pursuant to Section 21 of this Agreement. [SIGNATURES ON FOLLOWING PAGE]   Packet Pg. 768 15 SIGNATURE PAGE FOR VENDOR SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND NPA COMPUTERS, INC. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF SAN BERNARDINO APPROVED BY: Robert Field City Manager ATTESTED BY: Genoveva Rocha City Clerk APPROVED AS TO FORM: Best Best & Krieger LLP City Attorney CONSULTANT Signature Peter Aroniadis Name CEO Title   Packet Pg. 769 16 EXHIBIT A Attachment 6   Packet Pg. 770 Type Item #Model Serial # / Service Tag SLA Monthly Cost Annual Cost Hardware Item #118 {PDMEDIAGT} HPDL 38005 CTO Chassis USE808N7JX 24x7 $95.00 $1,140.00 Hardware Item #121 {PSGGroup2} Dell Equallogic PS4000 FKT8WN1 24x7 $95.00 $1,140.00 Hardware Item #122 {PSGGroup4} Dell Equallogic PS6500 6YS8WN1 24x7 $210.00 $2,520.00 Hardware Item #123 {PSGGroup3} Dell Equallogic PS4000 F9TKWP1 24x7 $95.00 $1,140.00 Hardware Item #133 {PSGGroup1} Dell Logic PS6000e ST JVCCVL1 24x7 $210.00 $2,520.00 Hardware Item #13 {Sally} Dell Poweredge 1850 77HX61 10x5 (M-F, 1030-530)$65.00 $780.00 Hardware Item #34 HP MS A30 Server Z5K9LMPX36 10x5 (M-F, 1030-530)$90.00 $1,080.00 Hardware Item #39 {Linus} Power Vault 114T DAT ND 7MDVW51 10x5 (M-F, 1030-530)$50.00 $600.00 Hardware Item #40 {Securus Tape} Dell Powervault 110T 7GLJWB1 10x5 (M-F, 1030-530)$50.00 $600.00 Hardware Item #41 {Securus Server} Dell Power Edge 2950 7PW87D1 10x5 (M-F, 1030-530)$65.00 $780.00 Hardware Item #42 {Securus Storage} HP Storage Works MSA 20 E02ZMLJ1BH 10x5 (M-F, 1030-530)$90.00 $1,080.00 Hardware Item #52 {Sequoia} Dell Power Edge 2900 HHQ16F1 10x5 (M-F, 1030-530)$65.00 $780.00 Hardware Item #53 {Redwood} Dell Power Edge 2900 JHQ16F1 10x5 (M-F, 1030-530)$65.00 $780.00 Hardware Item #68 {Yellowstone} HP Proliant DL360 G6 USE019N0VM 10x5 (M-F, 1030-530)$90.00 $1,080.00 Hardware Item #70 {PSGStorage} HP StorageWorks MSA60 (SBRMSTI)SGA8270093 10x5 (M-F, 1030-530)$90.00 $1,080.00 Hardware Item #72 Dell PowerEdge R710ST JV7TBP1 10x5 (M-F, 1030-530)$65.00 $780.00 Hardware Item #76 Dell PowerConnect 6248 9H8P6M1 10x5 (M-F, 1030-530)$65.00 $780.00 Hardware Item #77 Dell PowerConnect 6248 J68P6M1 10x5 (M-F, 1030-530)$65.00 $780.00 Hardware Item #HP Proliant DL 380 G5 (SBRMSTI)USE831N3BQ 10x5 (M-F, 1030-530)$65.00 $780.00 Hardware Item#Dell PowerEdge R730XD (Ocularis - Express Service Code: 28235641214); HDDs 2X 372GB SAS CYYRS72 10x5 (M-F, 1030-530)$90.00 $1,080.00 Software Item #301 NETSUITE BY TREND MICRO; SOFTWARE SUPPORT FOR 1400 USER LICENSES. INCLUSIVE OF THE FOLLOWING: EMANAGER, OFFICE SCAN, SERVER PROTECT, SCAN MAIL IWSS AND SPS N/A N/A Inclusive Inclusive Software Item #303 SYMANTEC: BACKUP EXEC FOR 1 WINDOWS XP AND WINDOWS 2000 INTEL SERVERS N/A N/A $85.00 $1,020.00 Software Item #306 SYMANTEC: SPECIAL AGENT FOR EXCHANGE. 1 SERVER N/A N/A $115.00 $1,380.00 Software Item #308 SYMANTEC: SPECIAL AGENT FOR WINDOWS 1 SERVER N/A N/A $65.00 $780.00 Software Item #311 NEATSUITE BY TREND MICRO: CONTROL MANAGER. ENTERPRISE LICENSE. INCLUDED N/A N/A Inclusive Inclusive Software Item #314 MICROSOFT: BRONZE SUPPORT FOR WINDOWS 2000 THROUGH CURRECT O.S.N/A N/A Software Item #315 MICROSOFT: BRONZE SUPPORT FOR EXCHANGE 2000 THROUGH CURRENT.N/A N/A Software Item #317 MICROSOFT: BRONZE ENTERPRISE SUPPORT FOR DESKTOP O.S. SUPPORT (2000, XP, VISTA, 7, 8) INCLUDED N/A N/A Software Item #318 MICROSOFT. BRONZE SUPPORT FOR SQL SERVER 2000.N/A N/A Software Item #319 MICROSOFT. BRONZE ENTERPRISE SUPPORT FOR MICROSOFT DESKTOP APPLICATIONS.N/A N/A $2,990.00 $35,880.00 $11,400.00$950.00   Packet Pg. 771   Packet Pg. 772   Packet Pg. 773   Packet Pg. 774   Packet Pg. 775 Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: September 15, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Barbara Whitehorn, Director of Finance Subject: Professional Services Agreement with Solutions Simplified for DocuSign Software Services (All Wards) Recommendation Adopt Resolution No. 2021-233 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a Professional Services Agreement between the City of San Bernardino and Solutions Simplified for DocuSign Software Services. Background The City of San Bernardino is upgrading technology infrastructure to be more efficient, effective, and transparent, and to provide better customer service at every level. This is a major process that requires analysis of every department to evaluate customer interfaces, determine base system requirements, identify risks, and make decisions on the best fit for a high level of customer service, automation, internal control and minimize paper for both internal and external processes. Discussion Contracts, applications, and other documen turnaround time for approvals and contract signing. The City researched options for electronic signature and determined that DocuSign would meet the needs of every department. DocuSign is used throughout government and industry; even home buying, and other major contracts can be entered into using DocuSign. Additionally, DocuSign will easily integrate with future system upgrades. As the City offers more online options for customers, DocuSign helps to ensure that every step of the process is straightforward, simple, and electronic for customers that do not want to visit a customer service location in person. 2020-2025 Key Strategic Targets and Goals Authorization of this agreement aligns with Key Target No. 3b: Improved Quality of Life: develop a customer service initiative, by improving the ability of customers, vendors, and applicants to complete forms and tasks electronically. 14 Packet Pg. 366   Packet Pg. 776 8546 Page 2 Fiscal Impact The financial impact to the City is an expense of $76,990 for Fiscal Year 2021/22. This total includes $62,000 for estimated usage, $13,640 for support, and a one-time onboarding cost of $1,350. There is adequate funding for this agreement in the FY 2021/22 Adopted Budget. No additional appropriation is required. The agreement will be renewed annually, and pricing may change based on usage volume. FINANCIAL DATA Current Fiscal Year: Ongoing Estimate Ongoing Estimate COST $ 76,990 $ 75,640 $ 75,640 GENERAL FUND SHARE $ 76,990 $ 75,640 $ 75,640 SOURCE OF FUNDS: General Fund Budget Adjustment: No Adequate funds included in Adopted FY 2021/22 Operating Budget For Fiscal Year: 2021/22 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-233, authorizing the City Manager to execute a Professional Services Agreement between the City of San Bernardino and Solutions Simplified for DocuSign Software Services. Attachments Attachment 1 Resolution No. 2021-233 Attachment 2 Solutions Simplified, DocuSign Agreement-Vendor Signed Ward: All Synopsis of Previous Council Actions: None 14 Packet Pg. 367   Packet Pg. 777 Resolution No. 2021-233 Resolution 2021- Page 1 of 3 RESOLUTION NO. 2021-233 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING A PROFESSIONAL SERVICES SOFTWARE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND SOLUTIONS SIMPLIFIED FOR DOCUSIGN SOFTWARE SERVICES WHEREAS, the City of San Bernardino is upgrading software and applications to improve efficiency, effectiveness, and customer service; and WHEREAS, DocuSign is a safe, secure, electronic signature software that is used throughout government and industry; and WHEREAS, the State of California entered into a contract with Solutions Simplified for DocuSign Software Services after a competitive bid process; and WHEREAS, California government contract pricing. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Mayor and City Council hereby authorize the City Manager to execute the Professional Services Agreement with Solutions Simplified for DocuSign Software Services, attached hereto as Exhibit . SECTION 3. The Mayor and City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 5. Effective Date. This Resolution shall become effective immediately. 14.a Packet Pg. 368 Attachment: Resolution No. 2021-233: Solutions Simplified-DocuSign Agreement (8546 : Professional Services Agreement with Solutions   Packet Pg. 778 Resolution No. 2021-233 Resolution 2021- Page 2 of 3 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 14.a Packet Pg. 369 Attachment: Resolution No. 2021-233: Solutions Simplified-DocuSign Agreement (8546 : Professional Services Agreement with Solutions   Packet Pg. 779 Resolution No. 2021-233 Resolution 2021- Page 3 of 3 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-___, 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 14.a Packet Pg. 370 Attachment: Resolution No. 2021-233: Solutions Simplified-DocuSign Agreement (8546 : Professional Services Agreement with Solutions   Packet Pg. 780 1 VENDOR SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND SOLUTIONS SIMPLIFIED This Agreement is made and entered into as of October 1, 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, CA 92401 Solutions Simplified, a California corporation with its principal place of business at 3626 Fair Oaks Blvd. Suite 100 Sacramento, CA 95864 Consultant are hereinafter sometimes referred to individually y as the RECITALS A. City is a public agency of the State of California and is in need of the following vendor services: DocuSign Enterprise Pro for Gov B. P ipal Code, the City is authorized to utilize cooperative bidding/piggyback contracting to utilize contracts awarded by other C. State of California Software Licensing Program Contract No. SLP-21-70- provides bid item prices for DocuSign services. D. The City desires to purchase DocuSign services at the bid item prices set forth in Contract Number SLP-21-70-0181N entered into between the California Department of General Services and Consultant. E. Consultant is duly licensed and has the necessary qualifications to provide such services. F. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein. NOW, THEREFORE, IT IS AGREED AS FOLLOWS: AGREEMENT 1. Incorporation of Recitals. The recitals above are true and correct and are hereby incorporated herein by this reference. 2. Services. Consultant shall provide the City with the services described in the Scope of Services a 3. Vendor Practices. All vendor services to be provided by Consultant pursuant to this Agreement shall be provided by personnel identified in their proposal. 14.b Packet Pg. 371 Attachment: Solutions Simplified DocuSign Agreement Vendor Signed 9.15.2021 (8546 : Professional Services Agreement with Solutions   Packet Pg. 781 2 Consultant warrants that Consultant is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may Consultant further represents that no City employee will provide any services under this Agreement. 4. Compensation. a. Subject to paragraph 4(b) below, the City shall pay for such services in accordance with the Schedule of b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $76,990.00 annually. This amount is to cover all related costs, and the City will not pay any additional fees for printing expenses. Consultant may submit invoices to City for approval. Said invoice shall be satisfaction. y-five (45) days from the date City receives said invoice. The invoice shall describe in detail the services performed and the associated time for completion. Any additional services approved and performed all identify the number of the authorized change order, where applicable, on all invoices. 5. Additional Work. If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement. 6. Term. This Agreement shall commence on the Effective Date and continue through May 21, 2024, the expiration date indicated within the SLP Agreement. This Agreement will be renewed annually until the expiration of the SLP agreement, unless terminated earlier according to Section 21 of this Agreement. 7. Maintenance of Records; Audits. a. maintained in accordance with generally recognized accounting principles and shall be made available to City for inspection and/or audit at mutually convenient times for a period of four (4) years from the Effective Date. b. Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City. 8. Time of Performance. Consultant shall perform its services in a prompt and 14.b Packet Pg. 372 Attachment: Solutions Simplified DocuSign Agreement Vendor Signed 9.15.2021 (8546 : Professional Services Agreement with Solutions   Packet Pg. 782 3 timely manner and shall commence performance upon receipt of written notice from the City to proceed. Consultant shall complete the services required hereunder within Term. 9. Delays in Performance. a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that 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 services); and (4) pandemics, rules to protect the public health, welfare and safety. b. Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Delays shall not entitle Consultant to any additional compensation regardless of the Party responsible for the delay. c. Notwithstanding the foregoing, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement. 10. Compliance with Law. a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements. b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies. c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement. 11. Standard of Care. with generally accepted practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the industry currently practicing under similar conditions. 14.b Packet Pg. 373 Attachment: Solutions Simplified DocuSign Agreement Vendor Signed 9.15.2021 (8546 : Professional Services Agreement with Solutions   Packet Pg. 783 4 12. Conflicts of Interest. During the term of this Agreement, Consultant shall at all times maintain a duty of loyalty and a fiduciary duty to the City and shall not accept payment from or employment with any person or entity which will constitute a conflict of interest with the City. 13. City Business Certificate. Consultant shall, prior to execution of this Agreement, obtain and maintain during the term of this Agreement a valid business registration certificate from the City any and all other licenses, permits, qualifications, insurance, and approvals of whatever nature that are legally required of Consultant to practice his/her profession, skill, or business. 14. Assignment and Subconsultant. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder. 15. Independent Consultant. Consultant is retained as an independent contractor and is not an employee of City. No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided. Any personnel performing the work governed by this Agreement on behalf of Consultant shall at all times be under exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such personnel, including, but not limited to: social security taxes, income tax withholding, unemployment 16. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a. Additional Insured The City of San Bernardino, its officials, officers, employees, agents, and policies of commercial general liability and automobile liability insurance using the endorsements and forms specified herein or exact equivalents. b. Commercial General Liability (i) The Consultant shall take out and maintain, during the 14.b Packet Pg. 374 Attachment: Solutions Simplified DocuSign Agreement Vendor Signed 9.15.2021 (8546 : Professional Services Agreement with Solutions   Packet Pg. 784 5 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. (ii) 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. (iii) 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 (iv) 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. (v) The policy shall give City, its elected and appointed officials, officers, employees, agents, and City-designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. (vi) 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. c. Automobile Liability (i) At all times during the performance of the work under this Agreement, the Consultant 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. 14.b Packet Pg. 375 Attachment: Solutions Simplified DocuSign Agreement Vendor Signed 9.15.2021 (8546 : Professional Services Agreement with Solutions   Packet Pg. 785 6 (ii) 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). (iii) The policy shall give City, its elected and appointed officials, officers, employees, agents and City designated volunteers additional insured status. (iv) 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. d. (i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured -insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement. (ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, Labor Code of the Stat Liability Coverage in amounts indicated herein. Consultant shall require all compensation coverage of the same type and limits as specified in this section. e. Professional Liability (Errors and Omissions) At all times during the performance of the work under this Agreement the Consultant 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 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 include work performed under this Agreement. insured and must include a provision establishing the insurer's duty to defend. f. Minimum Policy Limits Required (i) The following insurance limits are required for the Agreement: Combined Single Limit 14.b Packet Pg. 376 Attachment: Solutions Simplified DocuSign Agreement Vendor Signed 9.15.2021 (8546 : Professional Services Agreement with Solutions   Packet Pg. 786 7 Commercial General Liability $2,000,000 per occurrence/$4,000,000 aggregate for bodily injury, personal injury, and property damage Automobile Liability $1,000,000 per occurrence for bodily injury and property damage $1,000,000 per occurrence Professional Liability $1,000,000 per claim and aggregate (errors and omissions) (ii) Defense costs shall be payable in addition to the limits. (iii) 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. g. Evidence Required Prior to execution of the Agreement, the Consultant 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 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. h. Policy Provisions Required (i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of the premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. (ii) The Commercial General Liability Policy and Automobile 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. 14.b Packet Pg. 377 Attachment: Solutions Simplified DocuSign Agreement Vendor Signed 9.15.2021 (8546 : Professional Services Agreement with Solutions   Packet Pg. 787 8 (iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant 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. (iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. (v) 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 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. i. Qualifying Insurers (i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements: (1) 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. j. Additional Insurance Provisions (i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, 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 Consultant pursuant to this Agreement, including, but not limited to, the provisions concerning indemnification. (ii) 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 necessary and any premium paid by City will be promptly reimbursed by 14.b Packet Pg. 378 Attachment: Solutions Simplified DocuSign Agreement Vendor Signed 9.15.2021 (8546 : Professional Services Agreement with Solutions   Packet Pg. 788 9 Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. (iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) 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. k. Subconsultant Insurance Requirements. Consultant 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 Consultant, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants. 17. Indemnification. a. To the fullest extent permitted by law, Consultant shall defend (with counsel reasonably approved by the City), indemnify and hold the City, its elected and appointed officials, officers, employees, agents, and authorized volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, (collective ) in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of , or this Agreement, including without limitation the payment of all damages, expert witness fees, expenses. This indemnification clause excludes Claims arising from the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, the City Council, members of the City Council, its employees, or authorized volunteers. obligation shall survive the expiration or earlier termination of this Agreement. b. (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code shall be limited to the extent which the Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant in the performance of the services or this Agreement, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consulta 14.b Packet Pg. 379 Attachment: Solutions Simplified DocuSign Agreement Vendor Signed 9.15.2021 (8546 : Professional Services Agreement with Solutions   Packet Pg. 789 10 18. California Labor Code Requirements. Consultant 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 ervices are defined by the Prevailing Wage Laws, Consultant agrees to fully comply with such Prevailing Wage Laws, if applicable. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subcontractors 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). 19. Verification of Employment Eligibility. By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub-subconsultants to comply with the same. 20. Laws and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Bernardino, State of California. 21. Termination or Abandonment a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days written notice to Consultant. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work. b. Consultant may terminate its obligation to provide further services only in the 14.b Packet Pg. 380 Attachment: Solutions Simplified DocuSign Agreement Vendor Signed 9.15.2021 (8546 : Professional Services Agreement with Solutions   Packet Pg. 790 11 event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant. 22. . In the event that litigation is brought by any Party in connection with this Agreement, the prevailing Party shall be entitled to recover from the the prevailing Party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof. The costs, salary, and in enforcing this Agreement on behalf of the City 23. Responsibility for Errors. Consultant shall be responsible for its work and results under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation as may be requir services rendered under this Agreement at no additional cost to City. In the event that an to City, provide all other services necessary to rectify and correct the matter to the sole satisfaction of the City and to participate in any meeting required with regard to the correction. 24. Prohibited Employment. Consultant shall not employ any current employee of City to perform the work under this Agreement while this Agreement is in effect. 25. Costs. Each Party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein. 26. Documents Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City. 27. Organization. Consultant shall assign Mary Moss and Dorothy Navarro as Project Managers. The Project Managers shall not be removed from the Project or reassigned without the prior written consent of the City. 28. Limitation of Agreement. This Agreement is limited to and includes only the work included in the Project described above. 29. Notice. Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to the following addresses and shall be effective upon receipt thereof: CITY: CONSULTANT: 14.b Packet Pg. 381 Attachment: Solutions Simplified DocuSign Agreement Vendor Signed 9.15.2021 (8546 : Professional Services Agreement with Solutions   Packet Pg. 791 12 City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: Precious Carter (Procurement Manager) With Copy To: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: City Attorney Solutions Simplified 3626 Fair Oaks Blvd. Suite 100 Sacramento, CA 95864 Rachel DaValle, President 30. Third Party Rights. Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant. 31. Equal Opportunity Employment. Consultant 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 other interests protected by the State or Federal Constitutions. 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. 32. Entire Agreement. T , represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each Party acknowledges that no representations, inducements, promises, or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This is an integrated Agreement. 33. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal, or unenforceable for any reason, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance, and the remaining provisions of this Agreement shall remain in full force and effect. 34. 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, Consultant 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. 35. Non-Waiver. The delay or failure of either Party at any time to require performance or compliance by the other Party of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. 14.b Packet Pg. 382 Attachment: Solutions Simplified DocuSign Agreement Vendor Signed 9.15.2021 (8546 : Professional Services Agreement with Solutions   Packet Pg. 792 13 No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. The waiver of any right or remedy with respect to any occurrence or event shall not be deemed a waiver of any right or remedy with respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver. 36. Time of Essence. Time is of the essence for each and every provision of this Agreement. 37. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain, or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 38. Amendments. Only a writing executed by all of the Parties hereto or their respective successors and assigns may amend this Agreement. 39. . City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects. 40. Prohibited Interests. Consultant maintains and warrants that it has neither employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant 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 Consultant, 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. For the term of this Agreement, no 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. 41. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one single Agreement. 42. Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said Parties and that by doing so, the Parties hereto are formally bound to the provisions of this Agreement. 43. Electronic Signatures. Each Party acknowledges and agrees that this Agreement may be executed by electronic or digital signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature. [SIGNATURES ON FOLLOWING PAGE] 14.b Packet Pg. 383 Attachment: Solutions Simplified DocuSign Agreement Vendor Signed 9.15.2021 (8546 : Professional Services Agreement with Solutions   Packet Pg. 793 14 SIGNATURE PAGE FOR VENDOR SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND SOLUTIONS SIMPLIFIED IN WITNESS WHEREOF, the Parties 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: Best Best & Krieger LLP City Attorney CONSULTANT SOLUTIONS SIMPLIFIED Signature Rachel DaValle Name President Title 14.b Packet Pg. 384 Attachment: Solutions Simplified DocuSign Agreement Vendor Signed 9.15.2021 (8546 : Professional Services Agreement with Solutions   Packet Pg. 794 15 EXHIBIT A Scope of Services and Schedule of Charges The City will utilize DocuSign for Electronic document subscription services. City employees using DocuSign services will issue and review electronically signed documents. City employees and outside parties must agree to complete business electronically. In addition to electronic document services, DocuSign will provide premier support services and consulting services. City shall issue a purchase order on an annual basis upon the occurrence of the First Year End Date. For each Purchase Order, the Unit Price is subject to reduction if envelope usage increases. Please see the pricing schedule below: ITEM# PART# DESCRIPTION QTY UNIT PRICE EXT. PRICE TAXED 1 APT-0488 Licensing DocuSign Enterprise Pro for Government Envelopes DocuSign, Inc. APT-0488 First Year Start Date: 10/01/2021 First Year End Date: 09/30/2022 20,000 $3.10 $62,000.00 N 2 APT-0148 Enterprise Premier Support 22% of Recurring Fees (22% of List Price per $100 of List License Fees) DocuSign, Inc. APT-0148 Features: a. DocuSign Support Center b. Technical Customer Success Manager (TCSM) c. System Availability Monitoring d. Target Initial Response Time (2 hours) e. Global Emergency Support Time (30 min) f. Proactive Monitoring g. Sender and Signer Live Chat Support h. Live Phone Support i. Escalated Support j. Third-Party Software Support k. DocuSign Sandbox Demo Environment l. Web Application Administration Course First Year Start Date: 10/01/2021 First Year End Date: 09/30/2022 1 $13,640.00 $13,640.00 N 3 APT-0459 Adoption Consulting DocuSign, Inc.- APT-0459 Features: a. Deploy faster with guided onboarding expertise from DocuSign Adoption Consultants 1. We guide, you build 2. Admin Console Setup 3. Configuration review of up to three eSignature Web App use cases or a single out-of-the-box (OOTB) connector use case b. Expert-led Sessions c. Deployment Readiness d. Proven onboarding approach 1. Project Kickoff 2. Onboarding 3. Test/build 4. Handoff Start Date: 10/01/2021 End Date: 09/30/2022 1 $1,350.00 $1,350.00 N Subtotal $76,990.00 Tax Rate 8.75% Tax $0.00 Total $76,990.00 Payment Terms: Net 45 Days 14.b Packet Pg. 385 Attachment: Solutions Simplified DocuSign Agreement Vendor Signed 9.15.2021 (8546 : Professional Services Agreement with Solutions   Packet Pg. 795 16 14.b Packet Pg. 386 Attachment: Solutions Simplified DocuSign Agreement Vendor Signed 9.15.2021 (8546 : Professional Services Agreement with Solutions   Packet Pg. 796 7 9 8 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager Rolland Kornblau, Director of Information Technology Department:Information Technology Subject:Ratify and Approve the Enterprise Agreement with Earth Science Research Institute, Inc. Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, ratify and approve the Enterprise Agreement with Earth Science Research Institute, Inc. (ESRI) to reflect the correct three-year commitment terms for the total amount not to exceed $430,299. Background At the June 15, 2022, Mayor and City Council meeting, the Mayor and City Council approved item 24, an Enterprise Agreement with Earth Science Research Institution, Inc., for annual usage fees and software support. Staff recommended an expected amount for the annual maintenance for FY 2022-23 of $121,666 plus a 10% contingency of $12,166 for a total amount of $133,832. Discussion Subsequent to the City Council meeting, the Enterprise Agreement terms were reviewed after being routed for signatures. During this review, staff became aware that the terms in the Enterprise Agreement state the commitment will require a three-year agreement rather than one. The intent of this item is the clarify the agreement amount for the record and approve the three-year term with the following maintenance cost schedule: Year 1 is $121,666, Year 2 is $143,333, and Year 3 is $165,000. There is also a license fee of $300, which brings the total amount for the 3-year agreement to $430,299. 2021-2025 Key Strategic Targets and Goals Authorization of this agreement aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community. Software applications are maintained to achieve   Packet Pg. 797 7 9 8 operational efficiencies and support the organizational effectiveness of evolving processes. Fiscal Impact The cost of the annual support agreement has been included in the adopted FY 2022/23 budget. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, ratify and approve the Enterprise Agreement with Earth Science Research Institute, Inc. (ESRI) to reflect the correct three-year commitment terms for the total amount not to exceed $430,299. Attachments Attachment 1 ESRI Ward: All Wards Synopsis of Previous Council Actions: June 15, 2022 Mayor and City Council authorized the purchase of Annual Usage Fees, Software Maintenance, and Hardware Maintenance with Accela, Earth Science Research Institute (ESRI), OneMeeting (formerly known as PrimeGov), Tyler Technologies, and Verizon for FY 2022-23 for approximately $1.25 million.   Packet Pg. 798   Packet Pg. 799   Packet Pg. 800   Packet Pg. 801   Packet Pg. 802   Packet Pg. 803 Page 2 of 6 August 31, 2021 Customer may accept this Agreement by signing and returning the whole Agreement with (i) the Quotation attached, (ii) a purchase order, or (iii) another document that matches the Quotation and references this Agreement ("Ordering Document").ADDITIONAL OR CONFLICTING TERMS IN CUSTOMER'S PURCHASE ORDER OR OTHER DOCUMENT WILL NOT APPLY, AND THE TERMS OF THIS AGREEMENT WILL GOVERN.This Agreement is effective as of the date of Esri's receipt of an Ordering Document, unless otherwise agreed to by the parties ("Effective Date"). Term of Agreement:Three (3) years This Agreement supersedes any previous agreements, proposals, presentations, understandings, and arrangements between the parties relating to the licensing of the Products. Except as provided in Article 4 Product Updates, no modifications can be made to this Agreement. Accepted and Agreed: (Customer) By: Authorized Signature Printed Name: Title: Date: CUSTOMER CONTACT INFORMATION Contact: Telephone: Address: Fax: City, State, Postal Code: E-mail: Country: Quotation Number (if applicable):   Packet Pg. 804 Page 3 of 6 August 31, 2021 1.0 ADDITIONAL DEFINITIONS In addition to the definitions provided in the Master Agreement, the following definitions apply to this Agreement: "Case"means a failure of the Software or Online Services to operate according to the Documentation where such failure substantially impacts operational or functional performance. "Deploy", "Deployed" and "Deployment"mean to redistribute and install the Products and related Authorization Codes within Customer's organization(s). "Fee"means the fee set forth in the Quotation. "Maintenance"means Tier 2 Support, Product updates, and Product patches provided to Customer during the Term of Agreement. "Master Agreement"means the applicable master agreement for Esri Products incorporated by this reference that is (i) found at https://www.esri.com/en- us/legal/terms/full-master-agreement and available in the installation process requiring acceptance by electronic acknowledgment or (ii) a signed Esri master agreement or license agreement that supersedes such electronically acknowledged master agreement. "Product(s)"means the products identified in Table A List of Products and any updates to the list Esri provides in writing. "Quotation"means the offer letter and quotation provided separately to Customer. "Technical Support"means the technical assistance for attempting resolution of a reported Case through error correction, patches, hot fixes, workarounds, replacement deliveries, or any other type of Product corrections or modifications. "Tier 1 Help Desk"means Customer's point of contact(s) to provide all Tier 1 Support within Customer's organization(s). "Tier 1 Support"means the Technical Support provided by the Tier 1 Help Desk. "Tier 2 Support"means the Esri Technical Support provided to the Tier 1 Help Desk when a Case cannot be resolved through Tier 1 Support. 2.0 ADDITIONAL GRANT OF LICENSE 2.1 GrantofLicense.Subject to the terms and conditions of this Agreement, Esri grants to Customer a personal, nonexclusive, nontransferable license solely to use, copy, and Deploy quantities of the Products listed in Table A List of Products for the Term of Agreement (i) for the applicable Fee and (ii) in accordance with the Master Agreement. 2.2 Consultant Access.Esri grants Customer the right to permit Customer's consultants or contractors to use the Products exclusively for Customer's benefit. Customer will be solely responsible for compliance by consultants and contractors with this Agreement and will ensure that the consultant or contractor discontinues use of Products upon completion of work for Customer. Access to or use of Products by consultants or contractors not exclusively for Customer's benefit is prohibited. Customer may not permit its consultants or contractors to install Software or Data on consultant, contractor, or third-party computers or remove Software or Data from Customer locations, except for the purpose of hosting the Software or Data on Contractor servers for the benefit of Customer. 3.0 TERM,TERMINATION,AND EXPIRATION 3.1 Term.This Agreement and all licenses hereunder will commence on the Effective Date and continue for the duration identified in the Term of Agreement, unless this Agreement is terminated earlier as provided herein. Customer is only authorized to use Products during the Term of Agreement. For an Agreement with a limited term, Esri does not grant Customer an indefinite or a perpetual license to Products. 3.2 No Use upon Agreement Expiration or Termination.All Product licenses, all Maintenance, and Esri User Conference registrations terminate upon expiration or termination of this Agreement. 3.3 Termination for a Material Breach.Either party may terminate this Agreement for a material breach by the other party. The breaching party will have thirty (30) days from the date of written notice to cure any material breach. 3.4 Termination for Lack of Funds.For an Agreement with government or government-   Packet Pg. 805 Page 4 of 6 August 31, 2021 owned entities, either party may terminate this Agreement before any subsequent year if Customer is unable to secure funding through the legislative or governing body's approval process. 3.5 Follow-on Term.If the parties enter into another agreement substantially similar to this Agreement for an additional term, the effective date of the follow-on agreement will be the day after the expiration date of this Agreement. 4.0 PRODUCT UPDATES 4.1 Future Updates.Esri reserves the right to update the list of Products in Table A List of Products by providing written notice to Customer. Customer may continue to use all Products that have been Deployed, but support and upgrades for deleted items may not be available. As new Products are incorporated into the standard program, they will be offered to Customer via written notice for incorporation into the Products schedule at no additional charge. Customer's use of new or updated Products requires Customer to adhere to applicable additional or revised terms and conditions in the Master Agreement. 4.2 Product Life Cycle.During the Term of Agreement, some Products may be retired or may no longer be available to Deploy in the identified quantities. Maintenance will be subject to the individual Product Life Cycle Support Status and Product Life Cycle Support Policy, which can be found at https://support.esri.com/en/other- resources/product-life-cycle. Updates for Products in the mature and retired phases may not be available. Customer may continue to use Products already Deployed, but Customer will not be able to Deploy retired Products. 5.0 MAINTENANCE The Fee includes standard maintenance benefits during the Term of Agreement as specified in the most current applicable Esri Maintenance and Support Program document (found at https://www.esri.com/en- us/legal/terms/maintenance). At Esri's sole discretion, Esri may make patches, hot fixes, or updates available for download. No Software other than the defined Products will receive Maintenance. Customer may acquire maintenance for other Software outside this Agreement. a. Tier 1 Support 1.Customer will provide Tier 1 Support through the Tier 1 Help Desk to all Customer's authorized users. 2.The Tier 1 Help Desk will be fully trained in the Products. 3.At a minimum, Tier 1 Support will include those activities that assist the user in resolving how-to and operational questions as well as questions on installation and troubleshooting procedures. 4.The Tier 1 Help Desk will be the initial point of contact for all questions and reporting of a Case. The Tier 1 Help Desk will obtain a full description of each reported Case and the system configuration from the user. This may include obtaining any customizations, code samples, or data involved in the Case. 5.If the Tier 1 Help Desk cannot resolve the Case, an authorized Tier 1 Help Desk individual may contact Tier 2 Support. The Tier 1 Help Desk will provide support in such a way as to minimize repeat calls and make solutions to problems available to 6.Tier 1 Help Desk individuals are the only individuals authorized to contact Tier 2 Support. Customer may change the Tier 1 Help Desk individuals by written notice to Esri. b. Tier 2 Support 1.Tier 2 Support will log the calls received from Tier 1 Help Desk. 2.Tier 2 Support will review all information collected by and received from the Tier 1 Help Desk including preliminary documented troubleshooting provided by the Tier 1 Help Desk when Tier 2 Support is required. 3.Tier 2 Support may request that Tier 1 Help Desk individuals provide verification of information, additional information, or answers to additional questions to   Packet Pg. 806 Page 5 of 6 August 31, 2021 supplement any preliminary information gathering or troubleshooting performed by Tier 1 Help Desk. 4.Tier 2 Support will attempt to resolve the Case submitted by Tier 1 Help Desk. 5.When the Case is resolved, Tier 2 Support will communicate the information to Tier 1 Help Desk, and Tier 1 Help Desk will disseminate the resolution to the user(s). 6.0 ENDORSEMENT AND PUBLICITY This Agreement will not be construed or interpreted as an exclusive dealings agreement or Customer's endorsement of Products. Either party may publicize the existence of this Agreement. 7.0 ADMINISTRATIVE REQUIREMENTS 7.1 OEM Licenses.Under Esri's OEM or Solution OEM programs, OEM partners are authorized to embed or bundle portions of Esri products and services with their application or service. OEM partners' business model, licensing terms and conditions, and pricing are independent of this Agreement. Customer will not seek any discount from the OEM partner or Esri based on the availability of Products under this Agreement. Customer will not decouple Esri products or services from the OEM partners' application or service. 7.2 Annual Report of Deployments.At each anniversary date and ninety (90) calendar days prior to the expiration of this Agreement, Customer will provide Esri with a written report detailing all Deployments. Upon request, Customer will provide records sufficient to verify the accuracy of the annual report. 8.0 ORDERING,ADMINISTRATIVE PROCEDURES,DELIVERY,AND DEPLOYMENT 8.1 Orders, Delivery, and Deployment a.Upon the Effective Date, Esri will invoice Customer and provide Authorization Codes to activate the nondestructive copy protection program that enables Customer to download, operate, or allow access to the Products. If this is a multi-year Agreement, Esri may invoice the Fee up to thirty (30) calendar days before the annual anniversary date for each year. b.Undisputed invoices will be due and payable within thirty (30) calendar days from the date of invoice. Esri reserves the right to suspend Customer's access to and use of Products if Customer fails to pay any undisputed amount owed on or before its due date. Esri may charge Customer interest at a monthly rate equal to the lesser of one percent (1.0%) per month or the maximum rate permitted by applicable law on any overdue fees plus all expenses of collection for any overdue balance that remains unpaid ten (10) days after Esri has notified Customer of the past-due balance. c.Esri's federal ID number is 95-2775-732. d.If requested, Esri will ship backup media to the ship-to address identified on the Ordering Document, FOB Destination, with shipping charges prepaid. Customer acknowledges that should sales or use taxes become due as a result of any shipments of tangible media, Esri has a right to invoice and Customer will pay any such sales or use tax associated with the receipt of tangible media. 8.2 Order Requirements.Esri does not require Customer to issue a purchase order. Customer may submit a purchase order in accordance with its own process requirements, provided that if Customer issues a purchase order, Customer will submit its initial purchase order on the Effective Date. If this is a multi-year Agreement, Customer will submit subsequent purchase orders to Esri at least thirty (30) calendar days before the annual anniversary date for each year. a.All orders pertaining to this Agreement will be processed through Customer's centralized point of contact. b.The following information will be included in each Ordering Document: (1) Customer name; Esri customer number, if known; and bill-to and ship-to addresses (2) Order number (3) Applicable annual payment due   Packet Pg. 807 Page 6 of 6 August 31, 2021 9.0 MERGERS,ACQUISITIONS,OR DIVESTITURES If Customer is a commercial entity, Customer will notify Esri in writing in the event of (i) a consolidation, merger, or reorganization of Customer with or into another corporation or entity; (ii) Customer's acquisition of another entity; or (iii) a transfer or sale of all or part of Customer's organization (subsections i, ii, and iii, collectively referred to as "Ownership Change"). There will be no decrease in Fee as a result of any Ownership Change. 9.1 If an Ownership Change increases the cumulative program count beyond the maximum level for this Agreement, Esri reserves the right to increase the Fee or terminate this Agreement and the parties will negotiate a new agreement. 9.2 If an Ownership Change results in transfer or sale of a portion of Customer's organization, that portion of Customer's organization will transfer the Products to Customer or uninstall, remove, and destroy all copies of the Products. 9.3 This Agreement may not be assigned to a successor entity as a result of an Ownership Change unless approved by Esri in writing in advance. If the assignment to the new entity is not approved, Customer will require any successor entity to uninstall, remove, and destroy the Products. This Agreement will terminate upon such Ownership Change.   Packet Pg. 808 8 5 5 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager Barbara Whitehorn, Agency Director of Administrative Services Department:Human Resources Subject:Side Letter Agreement Between the City of San Bernardino and the San Bernardino Police Officers Association Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2022-211 approving a Side Letter Agreement to the Memorandum of Understanding between the City of San Bernardino and the San Bernardino Police Officers Association (SBPOA), amending Article III, Section 3 – Overtime. Background On September 21, 2022, the Mayor and City Council adopted Resolution No. 2022- 193, approving a side letter agreement to the Memorandum of Understanding (MOU) between the City and the San Bernardino Police Officers Association (SBPOA), adding Juneteenth as an observed holiday. On March 2, 2022, the Mayor and City Council adopted Resolution No. 2022-43, approving a side letter agreement to the MOU between the City and the SBPOA, amending the Police Officers Standards Training (POST) Advanced Certificate pay. On October 20, 2021, the Mayor and City Council adopted Resolution No. 2021 -251, approving the MOU between the City and SBPOA. On June 17, 2020, the Mayor and City Council adopted Resolution No. 2020-132, approving a side letter agreement to the MOU between the City and the SBPOA, amending work schedules. On December 19, 2018, the Mayor and City Council adopted Resolution No. 2018-287,   Packet Pg. 809 8 5 5 approving a side letter agreement to the MOU between the City and the SBPOA, adding Watch Commander Compensation. Discussion The Police Department often contracts with third parties throughout the year to provide public safety services at special events. When these agreements are entered into, third parties agree to reimburse the City for the costs associated with providing these services. To provide overtime payments to SBPOA members, a side letter is being recommended to establish and record the definition of double time and to address the circumstances in which overtime will be paid at a double time rate. The side letter has been designed by both parties to ensure that there are no additional costs to the City. Under the side letter, ‘special event’ includes any short-term event of less than 30 days where the services provided are outside of the normal scope of duties of the SBPOA as to providing routine police services to the City of San Bernardino. The term does not include long-term contracts with third parties to provide services for more than 30 days. The side letter will not apply to contracts with third parties which are non-profit organizations. In addition, the side letter will only apply to contracts where the third party agrees to fully indemnify the City against all liabilities and injuries incurred in the course of performance of any work under the contract. 2021-2025 Strategic Targets and Goals Authorization of this side letter agreement aligns with Key Target No. 2a: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact There is no fiscal impact to the City as any double time paid under this side letter is cost neutral. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2022-211 approving a Side Letter Agreement to the Memorandum of Understanding between the City of San Bernardino and the San Bernardino Police Officers Association (SBPOA), amending Article III, Section 3 – Overtime. Attachments Attachment 1 Resolution 2022-211 Attachment 2 Resolution 2022-211; Exhibit A – Side Letter Agreement with SBPOA Ward: All Wards Synopsis of Previous Council Actions:   Packet Pg. 810 8 5 5 September 21, 2022 The Mayor and City Council adopted Resolution No. 2022- 193, approving a side letter agreement to the Memorandum of Understanding (MOU) between the City and the SBPOA, adding Juneteenth as an observed holiday. March 2, 2022 The Mayor and City Council adopted Resolution No. 2022-43, approving a side letter agreement to the Memorandum of Understanding (MOU) between the City and the SBPOA, amending the Police Officers Standards Training (POST) Advanced Certificate pay. October 20, 2021 The Mayor and City Council adopted Resolution No. 2021 - 251, approving the MOU between the City and SBPOA. June 17, 2020 The Mayor and City Council adopted Resolution No. 2020- 132, approving a side letter agreement to the MOU between the City and the SBPOA, amending work schedules. December 19, 2018 The Mayor and City Council adopted Resolution No. 2018- 287, approving a side letter agreement to the MOU between the City and the SBPOA, adding Watch Commander Compensation.   Packet Pg. 811 Resolution No. 2022-211 Resolution 2022-211 October 5, 2022 Page 1 of 3 1 1 8 1 RESOLUTION NO. 2022-211 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE SIDE LETTER AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE SAN BERNARDINO POLICE OFFICERS ASSOCIATION AMENDING ARTCILE III, SECTION 3 - OVERTIME WHEREAS, the Police Department often contracts with third parties throughout the year to provide public safety services at special events; WHEREAS, when these agreements are entered into, third parties agree to reimburse the City for the costs associated with providing these services; and WHEREAS, to provide overtime payments to SBPOA members, a side letter is being created to establish and record the definition of double time and to address the circumstances in which double time will be paid. 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 Side Letter Agreement attached hereto and incorporated herein, marked as Exhibit A. SECTION 3.The Mayor and City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 4.Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 5. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 5th day of October, 2022.   Packet Pg. 812 Resolution No. 2022-211 Resolution 2022-211 October 5, 2022 Page 2 of 3 1 1 8 1 John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 813 Resolution No. 2022-211 Resolution 2022-211 October 5, 2022 Page 3 of 3 1 1 8 1 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2022-211, adopted at a regular meeting held on the 5th day of October 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2022. Genoveva Rocha, CMC, City Clerk   Packet Pg. 814 EXHIBIT A Page 1 of 2 SIDE LETTER TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SAN BERNARDINO AND THE SAN BERNARDINO POLICE OFFICERS’ ASSOCIATION This side letter agreement is by and between the CITY OF SAN BERNARDINO (“City”) and the SAN BERNARDINO POLICE OFFICERS ASSOCIATION (SBPOA) with regard to the matters set forth below. The City and SBPOA shall collectively be referred to as “the Parties”. WHEREAS, the parties have entered into a Memorandum of Understanding for the period of July 1, 2020 to June 30, 2025; and WHEREAS, post the negotiations to the MOU, the parties amended to include Article III, Section 3 (F) – Reimbursable overtime for working contractual events – to provide overtime in accordance with contracts between the City and a third party, (G) – Indemnification Prerequisites, (H) Special Event defined, and (I) - Double time defined. NOW, THEREFORE, the Parties hereby agree as follows: 1. Article III, Section 3 (F) of the MOU is hereby amended to reach in its entirety as follows: F. SBPOA members who work special events where the City has contracts with third parties to provide public safety services and where the third parties pay for the cost of such labor services shall be entitled to be paid an overtime rate of two times the member’s regular rate of pay provided the third party agrees. Such costs may include costs associated with workers’ compensation coverage, Medicare, CalPERS contributions and other expenses required by the SBPOA Memorandum of Understanding. The City and the SBPOA acknowledge that under no circumstance shall this provision result in any additional cost to the City. G. To be eligible for double time for work performed under such third-party contracts, the third party must agree in writing to indemnify the City against all liabilities and injuries incurred solely from the event, event management, or as a result of actions of event staff. H. Special Event shall mean any short-term event of less than 30 days where the services provided are outside of the normal scope of duties of the SBPOA as to providing routine police services to the City of San Bernardino. Special Events shall not include long-term contracts with third parties to provide services for more than 30 days. Special Events shall not include contracts with third parties who are non-profit organizations.   Packet Pg. 815 EXHIBIT A Page 2 of 2 I. Double time shall mean an increase in pay equal to two times the current regular rate of pay for the individual member assigned to the special event. 2. This side letter agreement shall become effective October 5, 2022, and shall apply to current Special Event contracts with third parties as well as Special Events contracts that are entered into after that effective date. 3. All other wages, hours, and other terms and condition of employment set forth in the MOU shall remain unchanged and in full force and effect. SIGNATURES: ___________________________________ Jonathan Plummer, President San Bernardino Police Officers’ Association Date: ____________________________ ___________________________________ Robert Field, City Manager City of San Bernardino Date: ____________________________   Packet Pg. 816 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager; Ed Erjavek, Library Director Department:Library Subject:Amendment No.1 to Agreement with Ingram Library Services, LLC. Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the Library Director to execute Amendment No. 1 to the agreement between San Bernardino Public Library (SBPL) and Ingram Library Services, LLC, for the purchase of library books and authorize the Agency Director of Administrative Services to approve an annual purchase order for an amount not to exceed $85,000. Background The mission of the San Bernardino Public Library (SBPL) is to provide free access to the world of ideas, information and creative experience for all citizens of San Bernardino. The Library is a cultural center where the people of San Bernardino come together to learn and participate in public discourse. It aids the community in the creation of informed and educated citizenry and provides opportunities for free lifelong learning and economic improvement. The Library provides books for our patrons at its four locations to further their educational, cultural, and recreational interests. SBPL also provides free public computers and Wi-Fi, online resources for library cardholders in-library and remotely, literacy services, programs and activities for all ages, and other services. SBPL staff includes 15 full-time and 25 part-time staff. Discussion   Packet Pg. 817 The Library posted RFQ F-21-25 through the Finance Department seeking proposals for book purchases, including cataloging and processing of books, for Fiscal Year 2021/22, with three possible one-year extensions. The RFQ opened on April 15, 2021 and closed on April 30, 2021. Libraries receive a discount of up to 40% percent on the individual title cost of most books and there are also per book charges for its cataloging and processing. The proposed contract extension is warranted because of staff satisfaction with the vendor. This Amendment exercises the city’s option for a one-year extension. 2021-2025 Strategic Targets and Goals The request to purchase library books for the educational, cultural, and recreational interests of our patrons aligns with Key Target No. 3: Improved Quality of Life. Fiscal Impact There is no fiscal impact in authorizing the execution of an amendment for books purchases. Funding is available in the Library's FY 2022/23 budget. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the Library Director to execute Amendment No. 1 to the agreement between San Bernardino Public Library (SBPL) and Ingram Library Services, LLC, for the purchase of library books and authorize the Agency Director of Administrative Services to approve an annual purchase order for an amount not to exceed $85,000. Attachments Attachment 1 – Goods Purchase Agreement Attachment 2 – Amendment No. 1 to Goods Purchase Agreement Ward: All Wards Synopsis of Previous Council Actions: September 1, 2021 The Mayor and City Council adopted Resolution No. 2021- 215, approving an agreement with Ingram Library Services, LLC.   Packet Pg. 818   Packet Pg. 819   Packet Pg. 820   Packet Pg. 821   Packet Pg. 822   Packet Pg. 823   Packet Pg. 824   Packet Pg. 825   Packet Pg. 826   Packet Pg. 827   Packet Pg. 828   Packet Pg. 829   Packet Pg. 830   Packet Pg. 831   Packet Pg. 832   Packet Pg. 833 1 55600.00100\40581774.1 AMENDMENT NO. 1 TO THE GOODS PURCHASE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND INGRAM LIBRARY SERVICES This Amendment (“Amendment”) is made and entered into this 1st day of July 2022, (“Effective Date”) by and between the City of San Bernardino (“City”) and Ingram Library Service LLC, a Tennessee corporation, with its principal place of business at One Ingram Blvd., La Verge, Tennessee 37086-1986 (“Supplier”). City and Supplies are sometimes individually referred to as “Party” and collectively as “Parties.” RECITALS WHEREAS, City and Supplier entered into a Goods Purchase Agreement on September 21, 2021 setting forth the terms and conditions under which Supplier would provide library goods, (i.e. books) for the City (“Agreement”); and WHEREAS, City and Consultant desire to amend the Agreement to modify the price of the contract set forth in Section 4.C. TERMS 1. Section 4.C. Section 4.C. of the Agreement is hereby amended to read as follows: “C. In no event shall the total amount paid for Goods provided by Supplier under this Agreement exceed the sum of Eighty-Five Thousand Dollars ($85,000) per fiscal year. Not to exceed Eighty-Five Thousand Dollars ($85,000) for Fiscal Year 2022-2023. No warranty is given or implied as to the total amount of Goods that may be purchased by the City during the term of the Agreement. Agreement is subject to the City Council approval of the City Manager’s proposed budget.” 2. Section 7.C. Section 7.C. is added to the Agreement to read as follows: “C. Freight Terms. Freight Terms: Shipments of 20 or more units from the City’s primary distribution center or from the City’s secondary distribution center qualify for free freight. Shipments of less than 20 units will be charged a flat $6.00 shipping fee. This flat fee amount or qualifying unit quantity is subject to change with prior written notice. Items picked, packed, and shipped together count as an individual shipment. Supplier does not currently assess any additional fees for shipping. However, given the unpredictable impact of rising oil prices, Supplier reserves the right to assess a fuel surcharge with prior written notice.   Packet Pg. 834 2 55600.00100\40581774.1 Due to the impact of rising oil prices, Supplier has instituted a $2.50 fuel surcharge. This charge is subject to change with notice. These charges will appear as a Shipping and Handling charge on the City’s invoice.” 3. Section 9. A - C. Section 9. A – C. of the Agreement is hereby amended to read as follows: “A.Supplier agrees to timely pay all sales and use tax (including any value added or gross receipts tax imposed similar to a sales and use tax) imposed by any federal, state, or local taxing authority on the ultimate purchase price of the Goods provided under this Agreement. City agrees to pay Supplier any sales, use, business activity, VAT, GST, and/or similar type taxes (“Indirect Taxes”) that Supplier is required to charge and collect and/or are imposed due to products and/or services rendered provided under this Agreement B. Supplier will withhold, and require its subcontractors, where applicable, to withhold all required taxes and contributions of any federal, state or local taxing authority which is measured by wages, salaries or other remuneration of its employees or the employees of its subcontractors. Supplier will deposit, or cause to be deposited, in a timely manner with the appropriate taxing authorities all amounts required to be withheld. C. All other taxes, however denominated or measured, imposed upon the price of the Goods provided hereunder, will be the responsibility of Supplier other than the “Indirect Taxes” in Section A which City agrees to pay Supplier as required. Supplier will timely report and remit such Indirect Taxes to the appropriate taxing authority. In addition, all taxes assessed by any taxing jurisdiction based on Supplier property used or consumed in the provision of the Goods such as and including ad valorem, use, personal property and inventory taxes will be the responsibility of Supplier.” 4. Section 9.D. Section 9.D. of the Agreement is hereby deleted in its entirety. 5. Section 14.A.6. Section 14.A.6. of the Agreement is amended to read as follows: “Privacy/Network Security (Cyber Liability), of at least $1,000,000 per claim and aggregate for: (1) privacy breaches, (2) system breaches, (3) denial or loss of service, and (4) the introduction, implantation or spread of malicious software code, in a form and with insurance companies acceptable to the City.” 6. Execution of Amendment. In accordance with Section 18.D. of the Agreement, this Amendment shall only be effective upon the execution by City and Supplier. 7. Entire Agreement. This Amendment represents the entire understanding of the City and the Supplier as to those matters contained in this Amendment, and supersedes and cancels any prior oral or written understanding, promises or representatives with respect to those matters covered in this Amendment, and it shall not be amended, altered or changed except by a written agreement signed by the parties hereto. 8. Full Force and Effect. Except as amended by this Amendment, all other provisions of the Agreement remain in full force and effect. From and after the date of this Amendment,   Packet Pg. 835 3 55600.00100\40581774.1 whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment. 9. Severability. If any provision of this Amendment shall be held invalid or unenforceable by a court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this Amendment unless elimination of such provision materially alters the rights and obligations set forth herein. 10. Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment. CITY OF SAN BERNARDINO INGRAM LIBRARY SERVICES LLC APPROVED BY: Ed Erjavek Signature Library Director Pamela Smith ATTESTED BY:Name VP & GM ILS Genoveva Rocha Title City Clerk APPROVED AS TO FORM: Best Best & Krieger LLP City Attorney   Packet Pg. 836 7 7 3 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager; Daniel Hernandez, Agency Director of Public Works Operations and Maintenance Department:Public Works Subject:Adoption of Ordinance No. MC-1594, CFD 2019-1 – Annexation No. 22 (Ward 7) Recommendation: Adopt Ordinance No. MC-1594 of Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2022-2023 to pay the annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services). Background On June 5, 2019, the 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”. A public hearing was set for July 17, 2019, for the issue of establishment of the community facilities district. Discussion On September 21, 2022, Ordinance No. MC-1594 was introduced by the Mayor and City Council. The Ordinance is now being returned to the Mayor and City Council for adoption. The Ordinance will become effective 30 days from the date of adoption.   Packet Pg. 837 7 7 3 2021-2025 Strategic Targets and Goals This project is consistent with Key Target No 1. Improved Operational & Financial Capacity and Key Target No 4. Economic Growth & Development. This project will contribute to ensure that the City is clean and attractive and provide infrastructure designed for long term economic growth. Fiscal Impact There is no fiscal impact associated with the recommended action of this item. All costs associated with annexing property into the District has been borne by the Property Owner. By annexing the subject property into the District, the costs of maintaining improvements located within the development will be financed through special taxes levied on the parcels within CFD 2019-1 and not through the City’s General Fund. Conclusion Adopt Ordinance No. MC-1594 of Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2022-2023 to pay the annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services). Attachments Attachment 1 – Ordinance No. MC-1594 (Ordinance Levying Special Taxes) Attachment 2 – Exhibit A – Description of Services Attachment 3 – Exhibit B – Description of Territory Attachment 4 – Project Location Map Ward: Seventh Ward Synopsis of Previous Council Actions: June 5, 2019 - Mayor and City Council adopted Resolution No. 2019-81, a Resolution of Intention to form Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982.” July 17, 2019 - Mayor and City Council adopted Resolution No. 2019-178 establishing Community Facilities District No. 2019-1; Resolution No. 2019-179 declaring election results for Community Facilities District No. 2019-1; and conducted the 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.   Packet Pg. 838 7 7 3 August 7, 2019 - Mayor and City Council conducted the 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. August 3, 2022 - Mayor and City Council adopted Resolution No. 2022-171, 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.” September 21, 2022 - Mayor and City Council adopted Resolution No. 2022-194 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 (Annexation No. 22), and adopted Resolution No. 2022-195 declaring election results for Community Facilities District No. 2019-1 (Annexation No. 22); and introduced Ordinance No. MC-1594 amending Ordinance No. MC-1522.   Packet Pg. 839 Ordinance No. MC-1594 1 9 9 2 ORDINANCE NO. MC-1594 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING ORDINANCE NO. MC-1522 AND LEVYING SPECIAL TAXES TO BE COLLECTED DURING FISCAL YEAR 2022-2023 TO PAY THE ANNUAL COSTS OF THE MAINTENANCE AND SERVICING OF LANDSCAPING, LIGHTING, WATER QUALITY IMPROVEMENTS, GRAFFITI, STREETS, STREET SWEEPING, PARKS AND TRAIL MAINTENANCE, A RESERVE FUND FOR CAPITAL REPLACEMENT, AND ADMINISTRATIVE EXPENSES WITH RESPECT TO CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) WHEREAS, the Mayor and City Council (the "City Council") of the City of San Bernardino (the "City") has heretofore adopted Resolution No. 2019-81, stating that a community facilities district to be known as "City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services), County of San Bernardino, State of California" (the "Community Facilities District"), is proposed to be established under the provisions of Chapter 2,5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982" (the "Act"), and fixing the time and place for a public hearing on the formation of the Community Facilities District; and WHEREAS, notice was published and mailed to the owners of the property in the Community Facilities District as required by law relative to the intention of the 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 September 21, 2022, at the time and place specified in said published and mailed notice, the City Council opened and held a public hearing as required by law relative to the formation of the Community Facilities District, the levy of the special taxes therein and the provision of services by the Community Facilities District; and WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District, the levy of the special taxes and the provision of services therein were heard, and a full and fair hearing was held; and WHEREAS, subsequent to said hearing, the City Council adopted resolutions entitled "Resolution of the City Council of the City of San Bernardino Establishing Calling An Election for the Purpose of Submitting the Question of the Levy of the Proposed Special Tax to the Qualified Electors of the Proposed Community Facilities District; Authorizing the Levy of Special Taxes; and Establishing the Appropriations Limit for the Proposed Community Facilities District" (the "Resolution of Formation") which resolution established the Community Facilities District, authorized the levy of a special tax within the District, and called an election within the District on   Packet Pg. 840 Ordinance No. MC-1594 2 9 9 2 the proposition of levying a special tax, and establishing an appropriations limit within the District; and WHEREAS, an election was held within the Community Facilities District in which the sole eligible landowner elector approved said propositions by more than the two-thirds vote required by the Act. THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1.Findings. It is necessary that the City Council of the City of San Bernardino levy special taxes pursuant to Sections 53340 of the Government Code to provide and finance the costs of certain types of services, and related costs within the Community Facilities District, including (i) the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, and park maintenance, (ii) a reserve fund for capital replacement, and (iii) administrative expenses, all as more completely described in Exhibit "A" to Resolution No. 2019-81, attached hereto and by this reference made a part hereof. SECTION 2.Levy of Special Taxes. Special taxes shall be and are hereby levied for the Fiscal Year 2022-2023, and each Fiscal Year thereafter, on all parcels of real property within the District which are subject to taxation, which are identified in Exhibit "B" attached hereto. Pursuant to said Section 53340, such special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and Lien priority in case of delinquency as is provided for ad valorem taxes. SECTION 3.Transmittal to County. The City Clerk shall immediately following adoption of this ordinance transmit a copy hereof to the Board of Supervisors and the County Auditor of the County of San Bernardino together with a request that the special taxes as levied hereby be collected on the tax bills for the parcels identified in Exhibit "B" hereto, along with the ordinary ad valorem property taxes to be levied on and collected from the owners of said parcels. SECTION 4.Authorization to Publish Ordinance. City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California. SECTION 5.Effective Date. This ordinance shall become effective thirty (30) days after its adoption. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 5th day of October, 2022. John Valdivia, Mayor City of San Bernardino   Packet Pg. 841 Ordinance No. MC-1594 3 9 9 2 Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 842 Ordinance No. MC-1594 4 9 9 2 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-1594, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the 21st day of September, 2022. Ordinance No. MC-1594 was approved, passed and adopted at a regular meeting held the 5th day of October, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of _____, 2022. Genoveva Rocha, CMC, City Clerk   Packet Pg. 843 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.   Packet Pg. 844 EXHIBIT B COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) SPECIAL TAX FISCAL YEAR 2022-23 (Effective as of October 5, 2022) ASSESSOR'S PARCEL NUMBERS Annexation Owner Assessor's Parcel Numbers Original Formation Cauffman Family Trust 4/20/98 0142-811-01 thru -13 and 0142-811-14 Cauffman Family Trust 5/4/11 0142-041-52 1 17329, LLC 0261-031-10, -13, 0261-771-01 thru -29 and 0348-111-52 2 GWS #4 Development, LLC 0141-431-24 3 Devore Storage Facility, LLC 0266-041-39 4 TH Rancho Palma, LLC 0261-761-01 thru -65 and 0261-762-01 thru -72 5 Strata Palma, LLC 0261-182-41 6 San Bernardino Medical Center, LLC 0147-114-20 and -21 7 ICO Fund VI, LLC 0281-441-01 thru -56 and 0281-442-01 thru -55 8 TR 2600 Cajon Industrial LLC 0148-122-04 9 Central Commerce Center, LLC 0280-151-29 10 Lankershim Industrial, LP 1192-311-01 11 Prologis, LP 0137-011-01, -31, 0137-051-27, 0137-052-46, 0274-011-11, -12, - 34, -35, -42, -43 12 Dreamland Real Estate Holdings 0281-061-35 13 Magic Laundry Services, Inc. 0141-282-05 and -06 14 Ahmad Family Trust 0136-191-21 15 Gateway SB, LLC 0134-054-33, -40, -44 16 RCH-CWI Belmont, LP 0261-712-01 thru -16 17 George A. Pearson 0142-212-18 18 To Be Determined 19 170 East 40th Street, LLC 0154-242-22 and -23 20 108 Highland, LP 0150-221-78 21 To Be Determined 22 1300 E Highland Ave LLC 0150-471-04, -05, -06, -07, -08 23 Vone SB, LLC 0272-161-17 and -18   Packet Pg. 845 HIGHLAND AVE DEL ROSA AVE25TH ST ORCHID DR MOUNTAIN AVEGOLDEN AVEHARRISON STPUMALO ST ^_·|}þ259 ·|}þ18 ·|}þ210 §¨¦215£¤66 £¤66 16TH ST SPRUCE ST SIERRA WAYWATERMAN AVENINTH ST CAMPUS WAY 2ND ST MAGNOLIA AVE 4TH ST RANCHO AVE17 TH S T BASE LINE ST SECOND S T PEPPER AVMOUNTIAN AVECITRUS ST PACIFIC ST 28TH ST FOOTHILL DR CEDAR AVEPARKDALE DR 34TH ST TIPPECANOE STCFD NO. 2019-1 (MAINTENAN CE SERVICES)ANNEXATION NO. 22 PROJECT MAP   Packet Pg. 846 7 6 8 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager; Daniel Hernandez, Agency Director of Public Works, Operations and Maintenance Department:Public Works Subject:Amendment No. 2 to Consultant Services Agreement with Paragon Partners Consultants, Inc. for H Street Widening Project Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager to execute all documents in support of Amendment No. 2 to the Consultant Services Agreement with Paragon Partners Consultants, Inc. to extend the contract term from June 30, 2022, to December 31, 2023, for the H Street Widening between 40th Street and Kendall Drive Project. Background This project consists of the widening of H Street between 40th Street and Kendall Drive to provide two through lanes in each direction and a two-way left-turn lane. The project will include right-of-way (ROW) acquisition, pavement widening, pavement rehabilitation, construction of curb & gutter, sidewalk, streetlights, drainage improvements, signing, striping, and modification of the traffic signal at 40th Street and Kendall Drive. On October 18, 2017, the Mayor and City Council authorized a Professional Services Agreement with CivilSource Inc. to provide environmental and civil engineering design services for the widening of H Street between 40th Street and Kendall Drive. The environmental component of the project was completed in November 2018 and the Plans Specifications & Estimate (PS&E) are 95% complete. As part of the PS&E,   Packet Pg. 847 7 6 8 CivilSource was required to identify necessary ROW takes for the project. On August 21, 2019, the Mayor and City Council authorized a Consultant Services Agreement with Paragon Partners, Ltd. (now Paragon Partners Consultants, Inc.) in the amount of $86,070 to perform all functions that are necessary to obtain required ROW for the H Street Widening between 40th Street and Kendall Drive. On April 7, 2021, the Mayor and City Council authorized Amendment No. 1 to the Master Agreement, to extend the previous expiration date to June 30, 2022. Discussion Consultant Services Agreement with Paragon Partners Consultants, Inc., executed on August 19, 2021, expired on June 30, 2022. The acquisition of the right-of-away is taking longer than anticipated and as a result, the term of the contract needs to be extended from June 30, 2022, to December 31, 2023. 2021-2025 Strategic Targets and Goals This project is consistent with Key Target No.1e: Improved Operational & Financial Capacity - Minimize risk and litigation exposure. Approval of this Amendment will result in public improvements being constructed that minimize risk and litigation exposure by widening ‘H’ Street and repairing sidewalk and providing missing ADA access along ‘H’ Street between 40th street and Kendall Drive. Fiscal Impact There is no General Fund impact associated with this action. The project for the proposed work was previously established through the adopted FY 2019/20 CIP in the Regional Circulation Development Impact Fee Fund. The remaining budget for this will be carried over from FY 2021/2022 into FY 2022/23. This amendment is not incurring any additional cost to the project. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager to execute all documents in support of Amendment No. 2 to Consultant Services Agreement with Paragon Partners Consultants, Inc. to extend the contract term from June 30, 2022, to December 31, 2023, for H Street Widening between 40th Street and Kendall Drive Project. Attachments Attachment 1 Amendment No. 2 - Paragon Partners Consultants, Inc. Attachment 2 Original Agreement Attachment 3 Amendment No. 1 - Signed Attachment 4 Location Map Ward: Fourth Ward   Packet Pg. 848 7 6 8 Synopsis of Previous Council Actions: October 18, 2017 Mayor and City Council awarded a Professional Services Agreement with CivilSource Inc. to provide environmental and civil engineering design services for the widening of H Street between 40th Street and Kendall Drive. December 19, 2018 Mayor and City Council adopted Resolution No. 2018- 75 for Mitigated Negative Declaration (MND), Mitigation Monitoring and Reporting Program (MMRP), and authorizing the Director of Community Development or designee to file a Notice of Determination (NOD) with the Clerk of the Board of Supervisors of San Bernardino County for the widening of H Street between 40th Street and Kendall Drive. August 21, 2019 Mayor and City Council authorized Consultant Services Agreement with Paragon Partners Consultants, Inc. to perform all ROW. April 7, 2021 Mayor and City Council authorized Amendment No. 1 to the Maser Agreement with Paragon Partners Consultants, Inc. to extend the previous expiration date to June 30, 2022.   Packet Pg. 849 SECOND AMENDMENT TO CONSULTANT SERVICES AGREEMENT WITH PARAGON PARTNERS CONSULTANTS, INC. (H STREET WIDENING PROJECT) This Second Amendment to the Consultant Services Agreement is made and entered into as of October 5, 2022 (“Effective Date”), by and between the City of San Bernardino, a charter city and municipal corporation (“City”) and Paragon Partners Consultants, Inc., a Delaware corporation (“Consultant”). City and Consultant are sometimes referred to herein individually as a “Party” and collectively as “Parties.” RECITALS A. WHEREAS, the City and the Consultant have entered into an agreement, dated, August 21, 2019, to perform all right-of-way (“ROW”) tasks for the H Street Widening Project between 40th Street and Kendall Drive (the “Master Agreement”). B. WHEREAS, the City and the Consultant have entered into the First Amendment to the Master Agreement, dated April 7, 2021, for the purpose of extending the term of the Master Agreement. C. WHEREAS, the Parties now desire to amend the Master Agreement in order to extend the term of the Master Agreement. NOW, THEREFORE, in consideration of the above recitals and the mutual covenants, conditions, and promises contained in this Second Amendment and the Master Agreement, the Parties mutually agree as follows: AGREEMENT 1. Incorporation of Recitals. The recitals listed above are true and correct and are hereby incorporated herein by this reference. 2. Term. The term of the Master Agreement shall be extended through December 31, 2023, unless earlier terminated. 3. Full Force. Except as amended by this Second Amendment, all provisions of the Master Agreement, as previously amended, including without limitation the indemnity and insurance provisions, shall remain in full force and effect and shall govern the actions of the Parties under this Second Amendment. 4. Electronic Transmission. A manually signed copy of this Second Amendment which is transmitted by facsimile, email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original executed copy of this Second Amendment for all purposes. This Second Amendment may be signed using an electronic signature.   Packet Pg. 850 5. Counterparts. This Second Amendment may be signed in counterparts, each of which shall constitute an original. IN WITNESS WHEREOF, the Parties hereto have executed this Second Amendment on the Effective Date first herein above written. CITY OF SAN BERNARDINO APPROVED BY: Robert D. Field, City Manager APPROVED AS TO FORM: Best Best & Krieger LLP City Attorney CONSULTANT PARAGON PARTNERS CONSULTANTS, INC. Signature Name Title   Packet Pg. 851   Packet Pg. 852   Packet Pg. 853   Packet Pg. 854   Packet Pg. 855   Packet Pg. 856   Packet Pg. 857   Packet Pg. 858   Packet Pg. 859   Packet Pg. 860   Packet Pg. 861   Packet Pg. 862   Packet Pg. 863   Packet Pg. 864   Packet Pg. 865   Packet Pg. 866   Packet Pg. 867   Packet Pg. 868   Packet Pg. 869   Packet Pg. 870   Packet Pg. 871   Packet Pg. 872   Packet Pg. 873   Packet Pg. 874   Packet Pg. 875   Packet Pg. 876   Packet Pg. 877   Packet Pg. 878   Packet Pg. 879 Page 1 of 1 H Street between 40th Street and Kendall Drive   Packet Pg. 880 7 8 2 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Robert D. Field, City Manager; Daniel Hernandez, Agency Director of Public Works, Operations and Maintenance Department:Public Works Subject:Resolution Declaring Intent to Annex Territory: Community Facilities District No. 2019-1 (Maintenance Services): Annexation No. 27, Tax Zone No. 28 (SB Drake LLC) (Ward 3) Recommendation: Adopt Resolution No. 2022-210, of the Mayor and City Council of San Bernardino, California, declaring its intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 27) and authorizing the levy of special taxes therein. Background On June 5, 2019, the Mayor and City Council approved Resolution No. 2019-81 establishing Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino ("CFD No. 2019-1" or "District") for the purpose of levying special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City. Discussion On July 17, 2019, the Mayor and City Council adopted Resolution No. 2019-178, establishing CFD No. 2019-1 pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (“Act”). CFD No. 2019-1 allows for the levy of special taxes on parcels of taxable property for the purpose of providing certain services which are   Packet Pg. 881 7 8 2 necessary to meet increased demands placed by development upon the City. Development projects are subject to conditions of approval that require projects to form/annex a maintenance district. These districts apply an annual fee or special tax upon properties within the District which provide the revenue to offset the cost of maintenance of the public improvements necessary to serve the development. The Developer has agreed to initiate and conduct the CFD annexation proceedings pursuant to the Act. To that end, the Developer has submitted a "Consent and Waiver" form, which is on file in the City Clerk's office that authorizes the City to: (1) hold the election and declare election results; (2) shorten election time requirements; (3) waive analysis and arguments; (4) waive all notice requirements relating to the conduct of the election immediately following the public hearing. The public facilities and services proposed to be financed within the territory to be annexed to the District are the following: 1. Public lighting and appurtenant facilities, including streetlights within public rights-of-way and traffic signals; and 2. Maintenance of streets, including pavement management; and 3. Maintenance and operation of water quality improvements including storm drainage and flood protection facilities; and 4. City and County costs associated with the setting, levying and collection of the special tax, and in the administration of the District including the contract administration and for the collection of reserve funds. The proposed development includes approximately 5.35 gross acres of a zoned industrial property. The property is located on the north side of E Central Ave between S Waterman Ave and S Valley View Ave. At build out this development will include an industrial warehouse as a new Tax Zone No. 28 within CFD No. 2019-1, as shown in the boundary map and included in the Resolution of Intention as Exhibit “D”. In order to annex into CFD No. 2019-1, a Resolution of Intention to annex property must be approved to identify the facilities to be maintained and establish the maximum special tax for this Tax Zone. The Resolution of Intention shall also set the date and time for the public hearing. The rate and method of apportionment of the special tax for this Tax Zone, (Tax Zone No. 28), is included as Exhibit “C” to the Resolution of Intention. The maximum annual special tax for this development has been calculated to be $2,143 per acre for FY 2022/23. This tax rate includes a Maximum Special Tax A of $1,851 per acre per year for maintenance services of public facilities and a Maximum Annual Special Tax B (Contingent) of $292 per acre per year. Special Tax B (Contingent) is for the maintenance and operation of the improvements described in Exhibit “B” attached hereto. If the Property Owners Association (POA) were to default of its obligation to   Packet Pg. 882 7 8 2 maintain such improvements, the City would be able to collect funds to pay for those services. Annual Special Tax A and Annual Special Tax B (Contingent) rate are proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. A maintenance exhibit, illustrating the services being maintained by the District, is hereby attached as Attachment #10. In order to annex property to CFD No. 2019-1 pursuant to the provisions of California Government Code Section 53311 et seq., the City must adopt a series of three statutorily required Resolutions and an Ordinance which are summarized below. Resolution declaring City intent to annex territory to Community Facilities District No. 2019-1 including the boundary of the area to be annexed and the rate and method of apportionment of special taxes within the annexation area (the special tax applies only to properties within the annexation area). 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 Resolution of Intention, the Public Hearing would be scheduled for November 16, 2022. 2021-2025 Strategic Targets and Goals This project is consistent with Key Target No 1. Improved Operational & Financial Capacity and Key Target No 4. Economic Growth & Development. This project will contribute to ensure that the City is clean and attractive and provide infrastructure designed for long term economic growth. Fiscal Impact The individual property owners in the District will be responsible for annual payments of special taxes. Upon full completion of the development, it is estimated that there will be an annual collection of special tax revenues of approximately $8,884 from Special Tax A, to be used to pay for maintenance costs. On March 1 of each year, every taxable unit for which a building permit has been issued within the boundaries of the District will be subject to the special tax for the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to buildout of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be applied to property within recorded final subdivision maps, as well as other undeveloped property within the boundaries of the District.   Packet Pg. 883 7 8 2 All costs associated with annexation into the District have been borne by the Developer. By annexing into the District, 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 Adopt Resolution No. 2022-210, of the Mayor and City Council of San Bernardino, California, declaring its intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 27) and authorizing the levy of special taxes therein. Attachments Attachment 1 – RES 2022-210 Resolution of Intention Attachment 2 – Exhibit A - Description of Territory Attachment 3 – Exhibit B - Description of Services Attachment 4 – Exhibit C - Rate and Method of Apportionment Attachment 5 – Exhibit D - Boundary Maps Attachment 6 – Exhibit E - Signed Petition and Waiver Attachment 7 – Exhibit F - Notice of Public Hearing Attachment 8 – Exhibit G - Special Election Ballot Attachment 9 – Project Map Attachment 10 – Maintenance Exhibit Ward: Third Ward Synopsis of Previous Council Actions: June 5, 2019 Mayor and City Council adopted Resolution No. 2019-81, 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,   Packet Pg. 884 7 8 2 services and expenses with respect to Community Facilities District No. 2019-1.   Packet Pg. 885 Resolution No. 2022-210 Resolution No. 2022-10 October 5, 2022 Page 1 of 4 1 0 4 3 RESOLUTION NO. 2022-210 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) OF THE CITY OF SAN BERNARDINO, ADOPTING A MAP OF THE AREA TO BE PROPOSED (ANNEXATION NO. 27) AND AUTHORIZING THE LEVY OF SPECIAL TAXES THEREIN WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), on June 5, 2019, the Mayor and City Council (the “City Council”) of the City of San Bernardino (the “City”) approved Resolution No. 2019-081 establishing Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, County of San Bernardino, State of California, defined the "CFD No. 2019-1", for the purpose 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; and WHEREAS, the Mayor and City Council has received a written instrument from the landowner in the CFD No. 2019-1 to initiate and conduct proceedings pursuant to the Act, to annex territory to CFD No. 2019-1 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; and WHEREAS, the Mayor and City Council has been advised that certain property owners have requested that the area shown in Exhibit D be annexed territory to the boundaries of CFD No. 2019-1, that a rate and method of apportionment of the special tax to be levied therein be established. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Intent to Annex. The Mayor and City Council hereby declares that it proposes and intends to conduct proceedings pursuant to Article 3.5 for the annexation to the Community Facilities District of the territory described in Exhibit A attached hereto. The Mayor and City Council determines that the public convenience and necessity require that such territory be annexed to the Community Facilities District. SECTION 2.Name of the Community Facilities District. The name of the existing community facilities district is known as “Community Facilities District No. 2019-1 (Maintenance Services)”. SECTION 3.Description of Territory Proposed to be Annexed, Annexation Map. The territories proposed to be annexed are included within the boundaries, within which property may annex to CFD No. 2019-1, and are more particularly described and shown on that certain map   Packet Pg. 886 Resolution No. 2022-210 Resolution No. 2022-10 October 5, 2022 Page 2 of 4 1 0 4 3 entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, County of San Bernardino, State of California,” as recorded on June 6, 2019 in Book 88 of Maps of Assessment and Community Facilities District, Page 33, and as Instrument No. 2019-0185395 in the official records of the County of San Bernardino. The territory proposed to be annexed to the CFD No. 2019-1 is described in Exhibit A attached hereto and by this reference made a part hereof. Such territory is also shown and described on the map thereof entitled "Annexation Map No. 27, Community Facilities District No. 2019-1 (Maintenance Services), City of San Bernardino, County of San Bernardino, State of California," which is on file with the City Clerk (the "Annexation Map") and attached hereto as Exhibit D. SECTION 4.Description of Authorized Services. The services proposed to be financed by CFD No. 2019-1 (the “Services”) are described in Exhibit B attached hereto. The cost of providing the Services includes “incidental expenses,” which include costs associated of CFD No. 2019-1, determination of the amount of special taxes, collection or payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2019-1. The Services authorized to be financed by CFD No. 2019-1 are in addition to those currently provided in the territory of CFD No. 2019-1 and do not supplant services already available within that territory. SECTION 5. Levy of Special Taxes. Except where funds are otherwise available, a special tax sufficient to pay the costs of the Services (including incidental expenses), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2019-1, will be levied annually within CFD No. 2019-1. The Rate and Method of Apportionment, and manner of collection of the special tax are specified in Exhibit C. SECTION 6. Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and Highways Code, the Mayor and City Council adopts the Annexation Map as the map of the area proposed to be annexed to the CFD No. 2019-1. Pursuant to Section 3111 of said Code, the City Clerk shall file the original of the Annexation map in his office and shall file a copy of the Annexation Map with the County Recorder of the County of San Bernardino no later than 15 days prior to the date of the hearing specified in Section 7 hereof. SECTION 7. Public Hearing. The Mayor and City Council hereby fixes 7:00 p.m., or as soon thereafter as practicable, on Wednesday, November 16, 2022, at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410, as the time and place when and where the Mayor and City Council will conduct a public hearing on the proposed annexation of the said territory to the CFD No. 2019-1. SECTION 8. Notice of Public Hearing. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing, in substantially the form attached hereto as Exhibit F, one time in a newspaper of general circulation published in the area of CFD No. 2019- 1. The publication of said notice shall be completed at least seven days prior to the date herein fixed for said hearing. Said notice shall contain the information prescribed by Section 53322 of the Act.   Packet Pg. 887 Resolution No. 2022-210 Resolution No. 2022-10 October 5, 2022 Page 3 of 4 1 0 4 3 SECTION 9. Mailing Ballots. In anticipation of its action on Wednesday November 16, 2022 to call the election on the annexation for the same date, pursuant to waiver of election time limits from the landowners, the Mayor and City Council hereby authorizes the City Clerk to mail to each landowner in the territory proposed to be annexed to the CFD No. 2019-1 a ballot in substantially the form set forth in Exhibit G hereto. A copy of the waiver and consent form signed by the property owner is attached hereto as Exhibit E and incorporated herein by this reference. SECTION 10. That the Mayor and City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 11. 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 12. 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 5th day of October 2022. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 888 Resolution No. 2022-210 Resolution No. 2022-10 October 5, 2022 Page 4 of 4 1 0 4 3 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2022-210, adopted at a regular meeting held on the 5th day of October 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of ____________ 2022. Genoveva Rocha, CMC, City Clerk   Packet Pg. 889 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. 27 is currently comprised of ten (10) parcels, located within the City boundaries. The property is identified by the following San Bernardino County Assessor's Parcel Number (APN). APN Owner Name 0280-032-07 SB Drake Central Avenue LLC 0280-032-08 SB Drake Central Avenue LLC 0280-032-09 SB Drake Central Avenue LLC 0280-032-10 SB Drake Central Avenue LLC 0280-032-11 SB Drake Central Avenue LLC 0280-032-13 SB Drake Central Avenue LLC 0280-032-14 SB Drake Central Avenue LLC 0280-032-15 SB Drake Central Avenue LLC 0280-032-37 SB Drake Central Avenue LLC 0280-032-38 SB Drake Central Avenue LLC       Packet Pg. 890 EXHIBIT B 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.   Packet Pg. 891 EXHIBIT C 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.      Packet Pg. 892 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.      Packet Pg. 893 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.    Packet Pg. 894 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    Packet Pg. 895 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:    Packet Pg. 896 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 obligation  to maintain the Contingent Services, which default shall be deemed to have occurred, as determined by  the Administrator, in each of the following circumstances:    (a) The POA files for bankruptcy;  (b) The POA is dissolved;  (c) The POA ceases to levy annual assessments for the Contingent Services; or  (d) The POA fails to provide the Contingent Services at the same level as the City provides similar  services and maintains similar improvements throughout the City and within ninety (90) days  after written notice from the City, or such longer period permitted by the City Manager, fails  to remedy the deficiency to the reasonable satisfaction of the City Council.    a. Developed Property     (i) Maximum Special Tax B (Contingent)    Packet Pg. 897 City of San Bernardino 7  Community Facilities District No. 2019‐1 (Maintenance Services)    The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is  shown in Table 4 and shall be specific to each Tax Zone within the CFD.  When additional  property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed  property shall reflect the Maximum Special Tax B (Contingent) for each Tax Zones annexed  and included in Appendix A.  The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20  within Tax Zone 1 is identified in Table 4 below:  TABLE 4  MAXIMUM SPECIAL TAX B (CONTINGENT) RATES  DEVELOPED PROPERTY    Tax  Zone  Tract Land Use Category  Taxable  Unit  Maximum Special   Tax B (Contingent)  1 TR 17170 Single Family Residential Property RU $0    (ii) Increase in the Maximum Special Tax B (Contingent)   On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for  Developed Property shall increase by i) the percentage increase in the Consumer Price Index  (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of  the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.    (iii) Multiple Land Use Categories   In some instances an Assessor's Parcel of Developed Property may contain more than one  Land Use Category.  The Maximum Special Tax B (Contingent) that can be levied on an  Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be  levied for each Land Use Category located on that Assessor's Parcel.  For an Assessor's Parcel  that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated  to each type of property based on the amount of Acreage designated for each land use as  determined by reference to the site plan approved for such Assessor's Parcel.  The  Administrator's allocation to each type of property shall be final.    b.  Approved Property  The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown  in Table 5 and shall be specific to each Tax Zone within the CFD.  When additional property is  annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect  the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.   The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20 within the Tax Zone is identified  in Table 5 below:  TABLE 5  MAXIMUM SPECIAL TAX B (CONTINGENT) RATES  APPROVED PROPERTY    Tax  Zone  Tract Land Use Category  Taxable  Unit  Maximum Special   Tax B (Contingent)  1 TR 17170 Single Family Residential Property RU $0    On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Approved  Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for    Packet Pg. 898 City of San Bernardino 8  Community Facilities District No. 2019‐1 (Maintenance Services)   Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding  Fiscal Year, or ii) by two percent (2.0%), whichever is greater.    c.  Undeveloped Property  The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown  in Table 6 and shall be specific to each Tax Zone within the CFD.  When additional property is  annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect  the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.   The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20 within the Tax Zone is identified  in Table 6 below:  TABLE 6  MAXIMUM SPECIAL TAX B (CONTINGENT) RATES  UNDEVELOPED PROPERTY    Tax Zone  Tracts Taxable Unit  Maximum Special   Tax B (Contingent)  1 TR 17170 Acre $0    On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Undeveloped  Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los  Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year,  or ii) by two percent (2.0%), whichever is greater.    D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX  1.  Special Tax A  Commencing with Fiscal Year 2019‐20 and for each following Fiscal Year, the Council shall determine  the Special Tax A Requirement and shall levy the Special Tax A on all Assessor’s Parcels of Taxable  Property until the aggregate amount of Special Tax A equals the Special Tax A Requirement for each  Tax Zone.  The Special Tax A shall be levied for each Fiscal Year as follows:    First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed  Property within each Tax Zone up to 100% of the applicable Maximum Special Tax to satisfy the Special  Tax A Requirement for such Tax Zone;    Second: If additional moneys are needed to satisfy the Special Tax A Requirement for a Tax Zone  after the first step has been completed, the Special Tax A shall be levied Proportionately on each  Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax A for  Approved Property;    Third: If additional monies are needed to satisfy the Special Tax A Requirement for a Tax Zone  after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all  Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum Special  Tax A for Undeveloped Property.  2.  Special Tax B (Contingent)  Commencing with Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for  each following Fiscal Year, the City Council shall determine the Contingent Special Tax B (Contingent)  Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of    Packet Pg. 899 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).      Packet Pg. 900 City of San Bernardino 10  Community Facilities District No. 2019‐1 (Maintenance Services)      I. MANNER OF COLLECTION   The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem  property taxes, provided, however, that CFD No. 2019‐1 may collect the Special Tax at a different time  or in a different manner if necessary to meet its financial obligations.       Packet Pg. 901 City of San Bernardino 11  Community Facilities District No. 2019‐1 (Maintenance Services)   APPENDIX A    CITY OF SAN BERNARDINO  COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES)                  COST ESTIMATE  Special Tax A Services ‐ The estimate breaks down the costs of providing one year's maintenance  services for Fiscal Year 2022‐23.  These services are being funded by the levy of Special Tax A for  Community Facilities District No. 2019‐1.  TAX ZONE 28  PM 20320    Item Description Estimated Cost  1 Lighting $600  2 Streets $6,922  3 Drainage $216  4 Reserves $122  5 Admin $1,024  Total  $8,884    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 2022‐23. If necessary, these  services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District  No. 2019‐1 Tax Zone 28.  TAX ZONE 28 (CONTINGENT SERVICES)  PM 20320    Item Description Estimated Cost  1 Streets $404  2 Admin $1,000  Total  $1,404    TAX ZONE 28  FY 2022‐23 MAXIMUM SPECIAL TAX RATES  DEVELOPED PROPERTY AND APPROVED PROPERTY     Land Use   Category  Taxable   Unit  Maximum   Special Tax A  Maximum   Special Tax B  Non‐Residential Property Acre $1,851 $292    Packet Pg. 902 City of San Bernardino 12  Community Facilities District No. 2019‐1 (Maintenance Services)     TAX ZONE 28  FY 2022‐23 MAXIMUM SPECIAL TAX RATES   UNDEVELOPED PROPERTY    Taxable   Unit  Maximum   Special Tax A  Maximum   Special Tax B  Acre $1,851 $292       Packet Pg. 903 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 $2,913 / Acre $334 / Acre ICO Fund VI, LLC  8 9 LM 2019‐021 2021‐22 $815 / Acre $232 / Acre TR 2600 Cajon Industrial LLC  9 10 TR 20189 2021‐22 $490 / Acre $154 / Acre Central Commerce Center, LLC  10 11 LD 1900086 2021‐22 $1,472 / Acre $0 / Acre Lankershim Industrial, LLC  11 12 TR 20305 2022‐23 $175 / Acre $0 / Acre Prologis, LP  12 13 LLA 2020‐004 2022‐23 $1,169 / Acre $0 / Acre Dreamland Real Estate Holdings  13 14 TR 5907 2022‐23 $2,268 / Acre $0 / Acre Magic Laundry Services, Inc.   14 15 0136‐191‐21 2022‐23 $5,277 / Acre $0 / Acre Ahmad Family Trust  15 16 TR 20216 2022‐23 $7,089 / Acre $0 / Acre Gateway SB, LLC  16 17 TR 20145 2022‐23 $646 / RU $0 / RU RCH‐CWI Belmont, LP  17 18 CUP 20‐07 2022‐23 $7,433 / Acre $0 / Acre George A. Pearson  18 19 TR 20258 2022‐23 $588 / RU $0 / RU RGC Family Trust  19 20 LM 21‐10 2022‐23 $5,284 / Acre $0 / Acre 170 East 40th Street, LLC  20 21 LM 22‐04 2022‐23 $6,397 / Acre $0 / Acre 108 Highland, LP  21 22 LM 2021‐013 2022‐23 $807 / Acre $0 / Acre SBABP IV, LLC  22 23 TR 4592 2022‐23 $847 / Acre $320 / Acre 1300 E Highland Ave LLC  23 24 LLA 2020‐005 2022‐23 $1,385 / Acre $978 / Acre Vone SB, LLC  24 25 TR 20494 2022‐23 $174 / RU $17 / RU PI Properties, LLC  25 26 TR 20495 2022‐23 $204 / RU $45 / RU Pacific West Company, et al.   26 To Be Determined  27 28 PM 20320 2022‐23 $1,851 / Acre $292 / Acre SB Drake Central Avenue LLC  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.    Packet Pg. 904 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.                  Packet Pg. 905 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      Packet Pg. 906 0280-032-070280-032-090280-032-110280-032-150280-032-140280-032-370280-032-080280-032-13CENTRAL AVEDRAKE DRHOLDEN DRFOISY STANNEXATION MAP NO. 27COMMUNITY FACILITIES DISTRICT NO. 2019-1(MAINTENANCE SERVICES)CITY OF SAN BERNARDINOCOUNTY OF SAN BERNARDINO, STATE OF CALIFORNIASHEET 1 OF 1 SHEETTHIS MAP SHOWS THE BOUNDARIES OF AREAS TO BEANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2019-1(MAINTENANCE SERVICES), OF THE CITY OF SANBERNARDINO, COUNTY OF SAN BERNARDINO, STATE OFCALIFORNIA. THE BOUNDARIES OF WHICH COMMUNITY FACILITIESDISTRICT ARE SHOWN AND DESCRIBED ON THE MAPTHEREOF WHICH WAS PREVIOUSLY RECORDED ONJUNE 6, 2019 IN BOOK 88 OF MAPS OF ASSESSMENTAND COMMUNITY FACILITIES DISTRICT AT PAGE 32 ANDAS INSTRUMENT NO. 2019-0185323 IN THE OFFICE OF THECOUNTY RECORDER OF THE COUNTY OF SAN BERNARDINO,STATE OF CALIFORNIA. I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSEDBOUNDARIES OF COMMUNITY FACILITIES DISTRICT 2019-1(MAINTENANCE SERVICES) FOR THE CITY OF SAN BERNARDINO,COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, WASAPPROVED BY THE CITY COUNCIL OF THE CITY OF SANBERNARDINO AT A REGULAR MEETING THEREOF, HELDON THE ____ DAY OF ____________________, 20 ____. BY ITS RESOLUTION NO. ____________________ _________________________________________CITY CLERK, CITY OF SAN BERNARDINO FILED IN THE OFFICE OF THE CITY CLERK THIS _____ DAY OF________, 20 ____. _________________________________________ CITY CLERK, CITY OF SAN BERNARDINOCFD 2019-1TAX ZONE 28^_·|}þ210§¨¦215£¤66THIS ANNEXATION MAP CORRECTY SHOWS THE LOT ORPARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OFTHE COMMUNITY FACILITIES DISTRICT. FOR DETAILSCONCERNING THE LINES AND DIMENSIONS OF LOTS ORPARCEL REFER TO THE COUNTY ASSESSOR MAPS FORFISCAL YEAR 2022-23.-LEGEND ANNEXATION AREA BOUNDARYPARCEL LINECITY BOUNDARYXXXX-XXX-XX ASSESSOR PARCEL NUMBER (APN)28 TAX ZONE0280-032-380280-032-1028THIS MAP WAS FILED UNDER DOCUMENT NUMBER_____________, THIS ____ DAY OF _______, 20 ____, AT_____ M. IN BOOK ___ OF __________ AT PAGE ____, ATTHE REQUEST OF _____________________________IN THE AMOUNT OF $_________ ASSESSOR-RECORDER SAN BERNARDINO COUNTY BY:________________________________ DEPUTY RECORDER SAN BERNARDINO COUNTY RECORDER'S CERTIFICATEEXHIBIT D&nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;907 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;908 EXHIBIT E   Packet Pg. 909   Packet Pg. 910   Packet Pg. 911   Packet Pg. 912   Packet Pg. 913 EXHIBIT F NOTICE OF PUBLIC HEARING ON INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT 2019-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 27) NOTICE IS HEREBY GIVEN that the City Council of the City of San Bernardino on October 5, 2022 adopted its Resolution No. 2022-___, in which it declared its intention to annex territory to existing Community Facilities District No. 2019-1 (Maintenance Services) (the "CFD No. 2019-1"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax. No change in the tax levied in the existing CFD No. 2019-1 is proposed. NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 7:00 p.m., or as soon thereafter as practicable, Wednesday, November 16, 2022 at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, as the time and place when and where the City Council will conduct a public hearing on the annexation of territory to CFD No. 2019-1. At the hearing, the testimony of all interest persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the November 16, 2022 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of San Bernardino (www.sbcity.org), and outside of the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410. A copy of the Agenda will be made available upon request to the San Bernardino City Clerk's office at 909-384-5002. DATED: ____________, 2022 _________________________________________ City Clerk of the City of San Bernardino PUB: _______________, 2022     Packet Pg. 914 EXHIBIT G CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 27 (November 16, 2022) This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2019-1 (Maintenance Services) (“CFD No. 2019-1”) of the City of San Bernardino: Name of Landowner Number of Acres Owned Total Votes SB Drake Central Avenue LLC 5.35 6 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 November 2, 2022, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted. Personal Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on November 16, 2022, at the Clerk’s office at 201 N. “E” Street, Bldg A, City of San Bernardino, CA 92401. However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on November 16, 2022. Very truly yours, Genoveva Rocha, CMC, City Clerk   Packet Pg. 915   TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE. OFFICIAL SPECIAL TAX BALLOT Name & Address of Property Owner: Assessor’s Parcel Number(s): SB Drake Central Avenue LLC Attn: Kevin Rice 12126 West Sunset Boulevard Los Angeles, CA 90049 0280-032-07, -08, -09, -10, -11, -13, -14, -15, -37, -38 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 October 5, 2022 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 27 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__.        Kevin Rice Managing Member Signature Print Name Title     Packet Pg. 916 CENTRAL AVEWATERMAN AVEHOLDEN DR DRAKE DR LENARDVALLEY VIEW AVEFOISY ST^_ £¤66 MIL L ST 16TH ST SPRUCE ST SIERRA WAYNINTH ST 2ND S T MAGNOLIA AVE ORANGE SHOW RD 4TH ST RANCHO AVE17 TH S T BASE LINE ST SECOND S T PEPPER AVPACIFIC ST CEDAR AVETIPPECANOE STCENTRAL AVE MERIDIAN AVESAN BERNARDINO AVE MT VERNON AVENORMAN R D PENNSYLVANIA AVEWATERMAN AVECITRUS AVE EUCALYPTUS AVEDOOLITTLE DRACADEMY STMT.VIEW AVECOLTON AVEREDLANDS BLVD MIL L ST ·|}þ259 §¨¦215 §¨¦10 £¤66 CFD N O. 2019-1 (M AINTEN ANCE SERVICES)ANNEXATION NO. 27 PROJECT MAP   Packet Pg. 917 TPATRIOT- DRAKE INDUSTRIALSITE PLAN EXHIBITCFD MAINTENANCECFD MAINTENANCE AREA&nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;918 8 2 2 ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Theodore Sanchez, Council Member, 1st Ward Department:Council Office Subject:Mechanisms for Revenue Generation from For-Profit Events in the City (All Wards) – Council Member Sanchez   Packet Pg. 919 8 6 4 CLOSED SESSION City of San Bernardino Request for Council Action Date:October 5, 2022 To:Honorable Mayor and City Council Members From:Sonia Carvalho, City Attorney Department:City Attorney's Office Subject: Closed Session A) CONFERENCE WITH LABOR NEGOTIATOR (Pursuant to Government Code Section 54957.6): Agency Designated Representative: City Manager Employee Organization: San Bernardino Police Management Association B) CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 Property: Carousel Mall Property, 43 acres Agency Negotiator: Robert D. Field, City Manager, or designee Negotiating Parties: SBDC (Renaissance Downtown USA/ICO Real Estate Group); Lincoln Group Under Negotiation: Price and Terms   Packet Pg. 920