Loading...
HomeMy WebLinkAbout03-15-2023 MCC 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, MARCH 15, 2023 5:30 PM ­ CLOSED SESSION 7:00 PM ­ OPEN SESSION FELDHEYM CENTRAL LIBRARY • SAN BERNARDINO, CA 92410 • WWW.SBCITY.ORG Theodore Sanchez Helen Tran Damon L. Alexander COUNCIL MEMBER, WARD 1 COUNCIL MEMBER, WARD 7 MAYOR Sandra Ibarra Charles E. McNeely COUNCIL MEMBER, WARD 2 INTERIM CITY MANAGER Juan Figueroa Sonia Carvalho COUNCIL MEMBER, WARD 3 CITY ATTORNEY Fred Shorett Genoveva Rocha MAYOR PRO TEM, 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: 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, use this link: tinyurl.com/agendabackup. Select the corresponding year and meeting date folders to view documents. 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 Council Member, Ward 3 Juan Figueroa Mayor Pro Tem, Ward 4 Fred Shorett Council Member, Ward 5 Ben Reynoso Council Member, Ward 6 Kimberly Calvin Council Member, Ward 7 Damon L Alexander Mayor Helen Tran Interim City Manager Charles E. McNeely City Attorney Sonia Carvalho City Clerk Genoveva Rocha 5:30 P.M. CLOSED SESSION PUBLIC COMMENT CLOSED SESSION p. 11 (A) CONFERENCE WITH LEGAL COUNSEL ­ EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1): 1. City of Arcadia, et al. v. Southern California Edison Corporation, Santa Barbara Superior Court Case No. 20 CV 02026 (B) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION – Initiation of litigation (pursuant to Gov. Code Section 54956.9(d)(4)): one case 7:00 P.M. INVOCATION AND PLEDGE OF ALLEGIANCE CLOSED SESSION REPORT PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA CITY MANAGER UPDATE MAYOR & CITY COUNCIL UPDATES/REPORTS ON CONFERENCES & MEETINGS PRESENTATIONS 1. Proclamation for AmeriCorps Week 2023 – March 2023 (All Wards) p. 12 2. Proclamation for Women’s History Month – March 2023 (All Wards) p. 14 Mayor and City Council of the City of San Bernardino Page 3 CONSENT CALENDAR 3. Purchase of Dog Kennels for the Animal Shelter (All Wards) p. 16 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager, or designee, to execute the Goods Purchase Agreement with Shor­Line for the purchase of new dog kennels to be installed at the animal shelter. 4. Irrevocable Agreement to Annex No. 2023­373 (Ward 6) p. 45 Recommendation: Adopt Resolution No. 2023­042 of the Mayor and City Council of the City of San Bernardino, California, approving the application to the Local Agency Formation Commission to provide City sewer services to property located within the unincorporated territory at 2971 North Macy Street, San Bernardino, California; and authorizing the City Manager to execute an Irrevocable Agreement to Annex. 5. Memorandum of Understanding Between the City of San Bernardino and the San Bernardino Municipal Water District Regarding the Land Designation of 796 E. 6th Street, 3250 Harrison Street, and Glendenning Way Properties (Wards 1 & 7) p. 61 Recommendation: It is recommended that the Mayor and City Council of San Bernardino, California, adopt Resolution No. 2023­043 of the Mayor and City Council of San Bernardino, California, approving a Memorandum of Understanding (MOU) between the City of San Bernardino and the San Bernardino Municipal Water District regarding the land designation of 796 E. 6th Street, 3250 Harrison Street, and Glendenning Way and authorize the Interim City Manager, or his designee, to execute the MOU. 6. Adoption of Ordinance No. MC­1613 (Annexation No. 31) (Ward 3) p. 197 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Ordinance No. MC­1613 amending Ordinance No. MC­1522 and levying special taxes to be collected during Fiscal Year 2023­2024 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). 7. Approval of Commercial and Payroll Disbursements (All Wards) p. 207 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for February 2023. 8. Investment Portfolio Report for January 2023 (All Wards) p. 263 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 January 2023. Mayor and City Council of the City of San Bernardino Page 4 9. Resolution No. 2023­044 Authorizing the Recording of a Notice of Cessation of Special Tax Lien for Community Facilities District No. 2022­1 (Highland/Medical) of the City of San Bernardino. (Sixth Ward) p. 275 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, Adopt Resolution No. 2023­044 of the City Council of the City of San Bernardino, Acting in its Capacity as the Legislative Body of Community Facilities District No. 2022­1 (Highland/Medical) of the City of San Bernardino, Authorizing the Recording of a Notice of Cessation of Special Tax Lien. 10. Receive and File San Bernardino Municipal Water Department’s Audited Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2022 p. 284 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the San Bernardino Municipal Water Department’s audited Annual Comprehensive Financial Report for water and sewer utilities for Fiscal Year ended June 30, 2022. PUBLIC HEARING 11. Development Permit Type­P 22­03 (Ward 2) p. 444 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2023­045 of the Mayor and City Council of the City of San Bernardino, California, approving Development Permit Type–P 22­03 allowing the conversion of an existing two­story office building, containing approximately 9,988 square feet, into an apartment complex consisting of twelve (12) multiple­family residential units on a project site consisting of three (3) parcels containing a total of approximately 0.68 acres located at 1490 N. D Street (APNs: 0145­181­03, 04, and 13), within the Commercial Office (CO) zone and Adaptive Reuse (AR) Overlay, and finding the project is subject to a Categorical Exemption under the California Environmental Quality Act. 12. Public Hearing on Annexation No. 33 to Community Facilities District 2019­1 (Ward 3) p. 538 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; and 2. Adopt Resolution No. 2023­046 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. 33); and 3. Hold a special landowner election and canvass the election; and 4. Adopt Resolution No. 2023­047 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. 33); and 5. Introduce, read by title only, and waive further reading of Ordinance No. MC­1614 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 2023­2024 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. MC­1614 for April 5, 2023. Mayor and City Council of the City of San Bernardino Page 5 13. Public Hearing on Annexation No. 34 to Community Facilities District 2019­1 (Ward 3) p. 598 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; and 2. Adopt Resolution No. 2023­048 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. 34); and 3. Hold a special landowner election and canvass the election; and 4. Adopt Resolution No. 2023­049 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. 34); and 5. Introduce, read by title only, and waive further reading of Ordinance No. MC­1615 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 2023­2024 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. MC­1615 for April 5, 2023. 14. Substantial Amendment to the Fiscal Year 2021­2022 Annual Action Plan – HOME Investment Partnership American Rescue Plan Program (HOME­ARP)(All Wards) p. 659 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Conduct a Public Hearing of the draft HOME Investment Partnership Allocation Plan; 2. Approve a Substantial Amendment to the Fiscal Year 2021­2022; 3. Approve the HOME Investment Partnership Allocation Plan; and 4. Authorize the Interim City Manager, or his designee, to execute any further documents as may be necessary to effectuate the submittal of the Substantial Amendment to the Fiscal Year 2021­2022 Action Plan. 15. Imposing Liens on Parcels of Real Property for Uncollected Business Registration Fees (All Wards) p. 710 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Conduct a public hearing to receive public comment on the matter; and 2. Adopt Resolution No 2023­050 of the Mayor and City Council of the City of San Bernardino, California, imposing liens on certain parcels of real property for unpaid Business Registration taxes and penalties; and 3. Direct the Agency Director of Administrative Services to remove any properties from the Business Registration Lien List (Exhibit A to the Resolution) which are resolved prior to the hearing. DISCUSSION 16. Adopt Ordinance No. MC­1612 Amending Section 8.24.050 of the Municipal Code (Notification of Administrative Hearing) (All Wards) p. 721 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: Adopt Ordinance No. MC­1612 amending Section 8.24.050 of the San Bernardino Municipal Code regarding notification of administrative hearing decision and final report of delinquent solid waste charges to affected persons. Mayor and City Council of the City of San Bernardino Page 6 ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS 17. City Organization Realignment (All Wards) – Council Member Alexander p. 730 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 April 05, 2023 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 March 15, 2023, Regular Meeting of the Mayor and City Council and the Mayor and City Council acting as the Successor Agency to the Redevelopment Agency was posted on the City's bulletin board located at 201 North "E" Street, San Bernardino, California, at the San Bernardino Public Library located at 555 West 6th Street, San Bernardino, California, and on the City's website sbcity.org on Friday, March 10, 2023. 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 7 NOTICE: 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 on the agenda or not on the agenda, 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 during the period reserved for public comments. In accordance with Resolution No. 2018­89 adopted by the Mayor and City Council on March 21, 2018, the following are the rules set forth for Public Comments and Testimony: Public Comments and Testimony: Rule 1. Public comment shall be received on a first come, first served basis. If the presiding officer determines that the meeting or hearing may be lengthy or complicated, the presiding officer may, in his or her discretion, modify these rules, including the time limits stated below. Rule 2. All members of the public who wish to speak shall fill out a speaker' s reservation card and turn in the speaker reservation card to the City Clerk prior to the time designated on the agenda. Comments will be received in the order the cards are turned in to the City Clerk. Failure of a person to promptly respond when their time to speak is called shall result in the person forfeiting their right to address the Mayor and City Council. Rule 3. The presiding officer may request that a member of the public providing comment audibly state into the microphone, if one is present, his or her name and address before beginning comment. If that person is representing a group or organization the presiding officer may request that the speaker identify that group or organization, including that group or organization' s Address. Rule 4. Notwithstanding the provisions of Rule 2 and 3 above, a person shall not be required to provide their name or address as a condition of speaking. Rule 5. Time Limits: 5. 01 Each member of the public shall have a reasonable time, not to exceed three ( 3) minutes per meeting, to address items on the agenda and items not on the agenda but within the subject matter jurisdiction of the Mayor and City Council. 5. 02 Notwithstanding the time limits set forth in subsection 5. 01 above, any member of the public desiring to provide public testimony at a public hearing shall have a reasonable time, not to exceed ( 3) minutes, to provide testimony during each public hearing. Mayor and City Council of the City of San Bernardino Page 8 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 9 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:2023 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. Continued next page... 8) Join the Meeting by clicking on the Zoom link below: Mayor and City Council of the City of San Bernardino Page 10 https://us06web.zoom.us/j/6778459453?pwd=ZTkzdUJtcDMrbmFNQnVDSFhva XQxZz09 Meeting ID: 677 845 9453 Passcode:2023 You can also Go to Zoom.us and click "Join a Meeting" at the top. Enter the Meeting ID: 677­845­9453 Passcode:2023 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. 1 2 1 0 CLOSED SESSION City of San Bernardino Request for Council Action Date:March 15, 2023 To:Honorable Mayor and City Council Members From:Sonia Carvalho, City Attorney Department:City Attorney Subject:Closed Session Recommendation: (A) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1): 1. City of Arcadia, et al. v. Southern California Edison Corporation, Santa Barbara Superior Court Case No. 20 CV 02026 (B) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION – Initiation of litigation (pursuant to Gov. Code Section 54956.9(d)(4)): one case   Packet Pg. 11 PRESENTATIONS City of San Bernardino Request for Council Action Date:March 15, 2023 To:Honorable Mayor and City Council Members From:Charles E. McNeely Department:Mayor's Office Subject:Proclamation for AmeriCorps Week 2023 – March 2023 (All Wards)   Packet Pg. 12 PROCLAMATION OF THE MAYOR AND CITY COUNCIL “AMERICORPS WEEK” WHEREAS, service is a hallmark of the American character and has the unique ability to bring people of all backgrounds together in common cause, and throughout our history citizens have stepped up to meet our most pressing challenges of the day by volunteering in their communities; and WHEREAS, AmeriCorps members and AmeriCorps Seniors volunteers programs provide opportunities for more than 200,000 Americans to serve their country through service at nonprofits, schools, public agencies, and community and faith-based groups across the country; and WHEREAS, in the City of San Bernardino and its service area, more than 400 AmeriCorps Seniors volunteers of diverse ages and backgrounds helped to meet local needs at more than 30 locations within the City of San Bernardino and its service area by responding to COVID-19, tutoring or mentoring children and youth, supporting veterans and military families, assisting frail and vulnerable seniors maintain their independent living skills, combatting the opioid epidemic, restoring the environment, responding to disasters, and providing one on one care for individuals with physical and developmental needs; and WHEREAS, AmeriCorps members and AmeriCorps Seniors volunteers encourage collaboration and partnerships, leveraging millions of volunteers in service and acquiring the support of business, foundation, and other local partners to increase the effectiveness of their initiatives; and WHEREAS, AmeriCorps and AmeriCorps Seniors programs bring people together across race, age, and zip codes to address critical issues facing the country, forge relationships and cultivate mutual respect, and help build resilient and thriving communities; and WHEREAS, AmeriCorps members and AmeriCorps Seniors volunteers demonstrate dedication and patriotism by making an intensive commitment to service, a commitment that remains with them in their future endeavors; and WHEREAS, through their service, AmeriCorps members and AmeriCorps Seniors volunteers strengthen the lives of their families, communities, of the City San Bernardino and its service area; and WHEREAS, national service represents a unique public-private partnership that invests in community solutions and leverages non-federal resources to strengthen community impact and increase the return on taxpayer dollars; and WHEREAS, AmeriCorps Week is an opportunity to recognize the dedication and commitment of the more than 1.2 million Americans who have chosen to serve their country through AmeriCorps and millions more who have served in AmeriCorps Seniors and their community partners, and to encourage more Americans to follow their footsteps in service. NOW THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, do hereby proclaim March 12th-18th, as AmeriCorps Week Presented this 15th Day of March 2023   Packet Pg. 13 1 2 0 0 PRESENTATIONS City of San Bernardino Request for Council Action Date:March 15, 2023 To:Honorable Mayor and City Council Members From:Charles E. McNeely Department:Mayor's Office Subject:Proclamation for Women’s History Month – March 2023 (All Wards)   Packet Pg. 14 2 3 5 8 PROCLAMATION OF THE MAYOR AND CITY COUNCIL “WOMEN’S HISTORY MONTH” WHEREAS, in 1987, The United States Congress designated the month of March as “Women’s History Month” to commemorate and encourage the study, observance, and celebration of the vital role of women in American history; and WHEREAS, the U.S. Census Bureau estimates that 50.2% or 111,546 residents in the City of San Bernardino are women; and WHEREAS, the contributions and accomplishments by women in the City of San Bernardino are vast, significant, and under-appreciated; and WHEREAS, women now serve San Bernardino in State and local elected office, including our Mayor, two city council members, our state senator, one of our County Supervisors, and members of our local and County school boards and community college board of trustees; and WHEREAS, women in San Bernardino continue to play a crucial role in our community as entrepreneurs, public servants, non-profit leaders, health care providers, educators, first responders, and volunteers; and WHEREAS, many of the current achievements by women in San Bernardino would not have been possible without the women that came before them, blazing the trail, breaking the glass ceiling, and redefining expectations. NOW THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, do hereby proclaim March 2023 as WOMEN’S HISTORY MONTH and encourage citizens to become more aware of the significant contributions of women to our City and nation. Presented this 15th Day of March 2023   Packet Pg. 15 Page 1 1 1 8 6 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:March 15, 2023 To:Honorable Mayor and City Council Members From:Charles E. McNeely, Interim City Manager; Kris Watson, Director of Animal Services Department:Animal Services Subject:Purchase of Dog Kennels for the Animal Shelter (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager, or designee, to execute the Goods Purchase Agreement with Shor-Line for the purchase of new dog kennels to be installed at the animal shelter. Background Since 2019, the City has made several improvements to the animal shelter, including constructing play yards for the dogs, upgrading electrical panels throughout the facility, installing a new ventilation system into the cat ward as well as demolishing old buildings and adding two new modular offices to increase the level of service the department can offer to the public. To date, these investments by the City in the animal shelter have been crucial in resolving the most critical needs of the Department. Discussion One of the most critical areas of the shelter needing improvement is the veterinary isolation ward. Animals that are sick are traditionally kept in this area for treatment and to reduce disease transmission to the remainder of the healthy population. The shelter’s current isolation ward is original to the facility and is out of date with current animal welfare standards to prevent illness. In order to reduce disease transmission and properly safeguard the health of the animals entrusted to the shelter, a new veterinary isolation ward needs to be completed on campus. The Department obtained a quote from Shor-Line for new kennels, consistent with current animal welfare standards. The kennels are larger than those in our current isolation ward and will have solid sides and kennel doors to reduce disease transmission between dogs. Shor-Line is the only large-scale manufacturer of dog kennels in the United States, and recently merged with the other manufacturer of kennels, Midmark. The kennels from Shor-Line include a patented drain design, are of   Packet Pg. 16 Page 2 1 1 8 6 high quality and made from stainless steel, making them easy to sanitize. There are older Shor-Line kennels at the shelter which were installed over forty years ago and are still in good working condition despite daily disinfection with harsh chemicals. The Department has included a single source justification for the purchase from Shor-Line due to the unique requirements for this purchase. This is a crucial purchase for the Department. If Animal Services is unable to complete the additional dog kennel building, the Department will not have the kennel space needed to house the number of dogs coming into the shelter. Additionally, the level of care the Department can provide to sick animals will continue to be below current animal welfare standards. Once installed, these new kennels will add 17 full size and 17 half size kennels to the isolation ward. An additional six smaller kennels will be added to the receiving area, expanding the space available for smaller dogs arriving overnight to the shelter. The kennels will be bolted to the cement floor, allowing them to be moved to another building or location in the future, if needed. 2021-2025 Strategic Targets and Goals The request for the purchase of new dog kennels aligns with Strategic Target No. 3: Improved Quality of Life. New kennels consistent with current animal welfare industry standards will increase the quality of care the shelter is able to provide to sick and injured pets. The new kennels will also improve the appearance of the animal shelter campus, leading to an improved quality of life for the pets impounded at the shelter and for members of the public visiting the facility. Fiscal Impact There is no fiscal impact to the General Fund for this purchase. The cost will be $184,860.37, and the Department will be using grant funding from the San Manuel Band of Mission Indians already included in the Animal Services FY 2022/23 Operating Budget for this purchase. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager, or designee, to execute the Goods Purchase Agreement with Shor-Line for the purchase of new dog kennels to be installed at the animal shelter. Attachments Attachment 1 – Shor-Line Goods Purchase Agreement Attachment 2 – Quote San Bernardino Runs Attachment 3 – Quote San Bernardino Double Deckers Attachment 4 – Sole Source Justification Form Attachment 5 – Sole Source Letter   Packet Pg. 17 Page 3 1 1 8 6 Ward: All Wards Synopsis of Previous Council Actions: January 6, 2019 Staff presented an update regarding the Animal Control Program and a report from the Animal Control Commission regarding capital improvement funding sources. September 18, 2019 Mayor and City Council appropriated funding from the Animal Shelter Improvement Fund for completion of an assessment of the shelter replacement costs and directed the City Manager to issue bids for facility repairs and resources needed to effectively operate an animal shelter, field and licensing program independent of the Police Department. December 4, 2019 Mayor and City Council approved Resolution No. 2019-356 authorizing the City Manager to engage Black O’Dowd and Associates to complete the electrical panel design, plans and specifications at a cost of $19,400 and to execute construction agreements with San Marino Roof Company Inc, for Roof Replacement and Noble E&C Inc for Mold Abatement and reconstruction of the main shelter building. June 24, 2020 Mayor and City Council approved Resolution No. 2020-128 approving the Capital Improvement Program for FY 2020/21. August 19, 2020 Mayor and City Council approved Resolution No. 2020-207 approving the total budget for the Electrical Service Replacement Project in the amount of $213,000 and awarding of a construction contract with TSR construction to complete the electrical service upgrade at the shelter. December 2, 2020 Mayor and City Council approved Resolution No. 2020-277, appropriating $81,000 from the Animal Shelter Improvement Fund and authorizing the Director of Finance to amend the FY 2020/21 CIP to include HVAC upgrades for a Cat Sanctuary at the Animal Shelter and awarding the construction contract to WCM & Associates, Inc. to complete the project. April 7, 2021 Mayor and City Council approved Resolution No. 2021-87, accepting grant funding in the amount of $1,500,000 from the San Manuel Band of Mission Indians for Animal Shelter improvements, programs and services.   Packet Pg. 18 1 CITY OF SAN BERNARDINO GOODS PURCHASE AGREEMENT This Goods Purchase Agreement (“Agreement”) is entered into this 16th day of March 2023, by and between the City of San Bernardino, a charter city and municipal corporation organized under the laws of the State of California with its principal place of business at Vanir Tower, 290 North D Street, San Bernardino, California 92401, County of San Bernardino, State of California (“City”), and Shor-Line, a CORPORATION, with its principal place of business at 511 Osage Ave, Kansas City, Kansas 66105 (“Supplier”). City and Supplier are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement. Section 1. DEFINITIONS. A. “Goods” means all machinery, equipment, supplies, items, parts, materials, labor or other services, including design, engineering and installation services, provided by Supplier as specified in Exhibit “A,” attached hereto and incorporated herein by reference. B. “Delivery Date(s)” means that date or dates upon which the Goods is to be delivered to City, ready for approval, testing and/or use as specified in Exhibit “B.” Section 2. MATERIALS AND WORKMANSHIP. When Exhibit “A” specifies machinery, equipment or material by manufacturer, model or trade name, no substitution will be made without City’s written approval. Machinery, equipment or material installed in the Goods without the approval required by this Section 2 will be deemed to be defective material for purposes of Section 4. Where machinery, equipment or materials are referred to in Exhibit “A” as equal to any particular standard, City will decide the question of equality. When requested by City, Supplier will furnish City with the name of the manufacturer, the performance capabilities and other pertinent information necessary to properly determine the quality and suitability of any machines, equipment and material to be incorporated in the Goods. Material samples will be submitted at City’s request. Section 3. INSPECTIONS AND TESTS. City shall have the right to inspect and/or test the Goods prior to acceptance. If upon inspection or testing the Goods or any portion thereof are found to be nonconforming, unsatisfactory, defective, of inferior quality or workmanship, or fail to meet any requirements or specifications contained in Exhibit “A,” then without prejudice to any other rights or remedies, City may reject the Goods or exercise any of its rights under Section 4.C. The inspection, failure to make inspection, acceptance of goods, or payment for goods shall not impair City’s right to reject nonconforming goods, irrespective of City’s failure to notify Supplier of a rejection of nonconforming goods or revocation of acceptance thereof or to specify with particularity any defect in nonconforming goods after   Packet Pg. 19 2 rejection or acceptance thereof. Section 4. WARRANTY. A. Supplier warrants that the Goods will be of merchantable quality and free from defects in design, engineering, material, and workmanship for a period of two (2) years, or such longer period as provided by a manufacturer’s warranty or as agreed to by Supplier and City, from the date of final written acceptance of the Goods by City as required for final payment under Section 7. Supplier further warrants that any services provided in connection with the Goods will be performed in a professional and workmanlike manner and in accordance with the highest industry standards. B. Supplier further warrants that all machinery, equipment, or process included in the Goods will meet the performance requirements and specifications specified in Exhibit “A” and shall be fit for the purpose intended. City’s inspection, testing, approval, or acceptance of any such machinery, equipment, or process will not relieve Supplier of its obligations under this Section 4.B. C. For any breach of the warranties contained in Section 4.A and Section 4.B, Supplier will, immediately after receiving notice from City, at the option of City, and at Supplier’s own expense and without cost to City: 1. Repair the defective Goods; 2. Replace the defective Goods with conforming Goods, F.O.B. City’s plant, office or other location of City where the Goods was originally performed or delivered; or 3. Repay to City the purchase price of the defective Goods. If City selects repair or replacement, any defects will be remedied without cost to City, including but not limited to, the costs of removal, repair, and replacement of the defective Goods, and reinstallation of new Goods. All such defective Goods that is so remedied will be similarly warranted as stated above. In addition, Supplier will repair or replace other items of the Goods which may have been damaged by such defects or the repairing of the same, all at its own expense and without cost to City. D. Supplier also warrants that the Goods is free and clear of all liens and encumbrances whatsoever, that Supplier has a good and marketable title to same, and that Supplier owns or has a valid license for all of the proprietary technology and intellectual property incorporated within the Goods. Supplier agrees to indemnify, defend, and hold City harmless against any and all third party claims resulting from the breach or inaccuracy of any of the foregoing warranties. E. In the event of a breach by Supplier of its obligations under this Section 4, City will not be limited to the remedies set forth in this Section 4, but will have all the rights   Packet Pg. 20 3 and remedies permitted by applicable law, including without limitation, all of the rights and remedies afforded to City under the California Commercial Code. Section 5. PRICES. Unless expressly provided otherwise, all prices and fees specified in Exhibit “C,” attached hereto and incorporated herein by reference, are firm and shall not be subject to change without the written approval of City. No extra charges of any kind will be allowed unless specifically agreed to in writing by City’s authorized representative. The total price shall include (i) all federal, state and local sales, use, excise, privilege, payroll, occupational and other taxes applicable to the Goods furnished to City hereunder; and (ii) all charges for packing, freight and transportation to destination. Section 6. CHANGES. City, at any time, by a written order, and without notice to any surety, may make changes in the Goods, including but not limited to, City’s requirements and specifications. If such changes affect the cost of the Goods or time required for its performance, an equitable adjustment will be made in the price or time for performance or both. Any change in the price necessitated by such change will be agreed upon between City and Supplier and such change will be authorized by a change order document signed by City and accepted by Supplier. Section 7. PAYMENTS. A. Terms of payment, are net thirty (30) days, less any applicable retention, after receipt of invoice, or completion of applicable Progress Milestones. Final payment shall be made by City after Supplier has satisfied all contractual requirements. Payment of invoices shall not constitute acceptance of Goods. B. If Progress Milestones have been specified in Exhibit “B,” then payments for the Goods will be made as the requirements of such Progress Milestones are met. Progress payments for the Goods will be made by City upon proper application by Supplier during the progress of the Goods and according to the terms of payment as specified in Exhibit “B.” Supplier’s progress billing invoice will include progress payments due for the original scope of work and changes. Each “Item for Payment” shown in Exhibit “B” and each change order will be itemized on the invoice. Invoices for cost plus work, whether part of Exhibit “B” or a change order, must have subcontractor and/or supplier invoices attached to Supplier’s invoice. Other format and support documents for invoices will be determined by City in advance of the first invoice cycle. C. Payments otherwise due may be withheld by City on account of defective Goods not remedied, liens or other claims filed, reasonable evidence indicating probable filing of liens or other claims, failure of Supplier to make payments properly to its subcontractors or for material or labor, the failure of Supplier to perform any of its other obligations under the Agreement, or to protect City against any liability arising out of Supplier’s failure to pay or discharge taxes or other obligations. If the causes for which   Packet Pg. 21 4 payment is withheld are removed, the withheld payments will be made promptly. If the said causes are not removed within a reasonable period after written notice, City may remove them at Supplier’s expense. D. Payment of the final Progress Milestone payment or any retention will be made by City upon: 1. Submission of an invoice for satisfactory completion of the requirements of a Progress Milestone as defined in Exhibit “B” and in the amount associated with the Progress Milestone; 2. Written acceptance of the Goods by City; 3. Delivery of all drawings and specifications, if required by City; 4. Delivery of executed full releases of any and all liens arising out of this Agreement; and 5. Delivery of an affidavit listing all persons who might otherwise be entitled to file, claim, or maintain a lien of any kind or character, and containing an averment that all of the said persons have been paid in full. If any person refuses to furnish an actual release or receipt in full, Supplier may furnish a bond satisfactory to City to indemnify City against any claim or lien at no cost to City. E. Acceptance by Supplier of payment of the final Progress Milestone payment pursuant to Section 7.D will constitute a waiver, release and discharge of any and all claims and demands of any kind or character which Supplier then has, or can subsequently acquire against City, its successors and assigns, for or on account of any matter or thing arising out of, or in any manner connected with, the performance of this Agreement. However, payment for the final Progress Milestone by City will not constitute a waiver, release or discharge of any claims or demands which City then has, or can subsequently acquire, against Supplier, its successors and assigns, for or on account of any matter or thing arising out of, or in any manner connected with, the performance of this Agreement. Section 8. SCHEDULE FOR DELIVERY. A. The time of Supplier’s performance is of the essence for this Agreement. The Goods will be delivered in accordance with the schedule set forth in Exhibit “B.” Supplier must immediately notify City in writing any time delivery is behind schedule or may not be completed on schedule. In addition to any other rights City may have under this Agreement or at law, Supplier shall pay City the sum of $25.00 per item of Goods for each calendar day for which the item of Goods is unavailable beyond the scheduled delivery date(s) specified in Exhibit “B.”   Packet Pg. 22 5 B. In the event that the Goods is part of a larger project or projects that require the coordination of multiple contractors or suppliers, then Supplier will fully cooperate in scheduling the delivery so that City can maximize the efficient completion of such project(s). Section 9. TAXES. 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. 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. 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. D. Supplier will, upon written request, submit to City written evidence of any filings or payments of all taxes required to be paid by Supplier hereunder. Section 10. INDEPENDENT CONTRACTOR. Supplier enters into this Agreement as an independent contractor and not as an employee of City. Supplier shall have no power or authority by this Agreement to bind City in any respect. Nothing in this Agreement shall be construed to be inconsistent with this relationship or status. All employees, agents, contractors or subcontractors hired or retained by the Supplier are employees, agents, contractors or subcontractors of the Supplier and not of City. City shall not be obligated in any way to pay any wage claims or other claims made against Supplier by any such employees, agents, contractors or subcontractors or any other person resulting from performance of this Agreement. Section 11. SUBCONTRACTS. Unless otherwise specified, Supplier must obtain City’s written permission before subcontracting any portion of the Goods. Except for the insurance requirements in Section 13.A, all subcontracts and orders for the purchase or rental of supplies, materials or equipment, or any other part of the Goods, will require that the subcontractor be bound by and subject to all of the terms and conditions of the Agreement. No subcontract or order will relieve Supplier from its obligations to City, including, but not limited to Supplier’s insurance and indemnification obligations. No subcontract or order will bind City.   Packet Pg. 23 6 Section 12. TITLE AND RISK OF LOSS. Unless otherwise agreed, City will have title to, and risk of loss of, all completed and partially completed portions of the Goods upon delivery, as well as materials delivered to and stored on City property which are intended to become a part of the Goods. However, Supplier will be liable for any loss or damage to the Goods and/or the materials caused by Supplier or its subcontractors, their agents or employees, and Supplier will replace or repair said Goods or materials at its own cost to the complete satisfaction of City. Notwithstanding the foregoing, in the event that the City has paid Supplier for all or a portion of the Goods which remains in the possession of Supplier, then City shall have title to, and the right to take possession of, such Goods at any time following payment therefor. Risk of loss for any Goods which remains in the possession of Supplier shall remain with Supplier until such Goods has been delivered or City has taken possession thereof. Supplier will have risk of loss or damage to Supplier’s property used in the construction of the Goods but which does not become a part of the Goods. Section 13. INDEMNIFICATION. A. Supplier 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 alleged acts, omissions, negligence or willful misconduct of Supplier, its officials, officers, employees, agents, subcontractors and subconsultants arising out of or in connection with the Goods or the performance of this Agreement, including without limitation the payment of all consequential damages and attorneys’ fees and other related costs and expenses except such loss or damage which was caused by the sole negligence or willful misconduct of the City. B. Supplier’s defense obligation for any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers shall be at Supplier’s own cost, expense, and risk. Supplier shall pay and satisfy any judgment, award, or decree that may be rendered against City or its officials, officers, employees, agents, or volunteers, in any such suit, action, or other legal proceeding. Supplier shall reimburse City and its 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. C. Supplier’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its officials, officers, employees, agents or volunteers. Section 14. INSURANCE. A. General. Supplier shall take out and maintain:   Packet Pg. 24 7 1. Commercial General Liability Insurance, of at least $2,000,000 per occurrence/ $4,000,000 aggregate for bodily injury, personal injury and property damage, at least as broad as Insurance Services Office Commercial General Liability most recent Occurrence Form CG 00 01; 2. Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, of at least $1,000,000 per accident for bodily injury and property damage, at least as broad as most recent Insurance Services Office Form Number CA 00 01 covering automobile liability, Code 1 (any auto); 3. Workers’ Compensation in compliance with applicable statutory requirements and Employer's Liability Coverage of at least $1,000,000 per occurrence; and 4. Pollution Liability Insurance of at least $1,000,000 per occurrence and $2,000,000 aggregate shall be provided by the Supplier if transporting hazardous materials. 5. If Supplier is also the manufacturer of any equipment included in the Goods, Supplier shall carry Product Liability and/or Errors and Omissions Insurance which covers said equipment with limits of not less than $1,000,000. 6. Privacy/Network Security (Cyber Liability), of at least $1,000,000 per occurrence 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. B. Additional Insured; Primary; Waiver of Subrogation; No Limitation on Coverage. The policies required under this Section shall give City, its officials, officers, employees, agents or volunteers additional insured status. Such policies shall contain a provision stating that Supplier’s policy is primary insurance and that any insurance, self- insurance or other coverage maintained by the City or any additional insureds shall not be called upon to contribute to any loss, and shall contain or be endorsed with a waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers. 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. 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. C. Insurance Carrier. All insurance required under this Section is to be placed with insurers with a current A.M. Best’s rating no less than A-:VII, licensed to do business in California, and satisfactory to the City.   Packet Pg. 25 8 D. Evidence of Insurance. Supplier shall furnish City with original certificates of insurance and endorsements effecting coverage required by the Agreement. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms supplied or approved by the City. All certificates and endorsements must be received and approved by the City before delivery commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. E. Subcontractors. All subcontractors shall meet the requirements of this Section before commencing work. In addition, Supplier shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. F. Freight. Supplier shall ensure that third party shippers contracted by Supplier have adequate insurance coverage for the shipped Goods. Section 15. LIENS. A. Supplier, subcontractors and suppliers will not make, file or maintain a mechanic’s or other lien or claim of any kind or character against the Goods, for or on account of any labor, materials, fixtures, tools, machinery, equipment, or any other things furnished, or any other work done or performance given under, arising out of, or in any manner connected with the Agreement (such liens or claims referred to as “Claims”); and Supplier, subcontractor and suppliers expressly waive and relinquish any and all rights which they now have, or may subsequently acquire, to file or maintain any Claim and Supplier, subcontractor and suppliers agree that this provision waiving the right of Claims will be an independent covenant. B. Supplier will save and hold City harmless from and against any and all Claims that may be filed by a subcontractor, supplier or any other person or entity and Supplier will, at its own expense, defend any and all actions based upon such Claims and will pay all charges of attorneys and all costs and other expenses arising from such Claims. Section 16. TERMINATION OF AGREEMENT BY CITY. A. Should Supplier at any time refuse or fail to deliver the Goods with promptness and diligence, or to perform any of its other obligations under the Agreement, City may terminate Supplier’s right to proceed with the delivery of the Goods by written notice to Supplier. In such event City may obtain the Goods by whatever method it may deem expedient, including the hiring of another contractor or other contractors and, for that purpose, may take possession of all materials, machinery, equipment, tools and appliances and exercise all rights, options and privileges of Supplier. In such case Supplier will not be entitled to receive any further payments until the Goods is delivered. If City’s cost of obtaining the Goods, including compensation for additional managerial   Packet Pg. 26 9 and administrative services, will exceed the unpaid balance of the Agreement, Supplier will be liable for and will pay the difference to City. B. City may, for its own convenience, terminate Supplier’s right to proceed with the delivery of any portion or all of the Goods by written notice to Supplier. Such termination will be effective in the manner specified in such notice, will be without prejudice to any claims which City may have against Supplier, and will not affect the obligations and duties of Supplier under the Agreement with respect to portions of the Goods not terminated. C. On receipt of notice under Section 16.B, Supplier will, with respect to the portion of the Goods terminated, unless the notice states otherwise, 1. Immediately discontinue such portion of the Goods and the placing of orders for materials, facilities, and supplies in connection with the Goods, 2. Unless otherwise directed by City, make every reasonable effort to procure cancellation of all existing orders or contracts upon terms satisfactory to City; and 3. Deliver only such portions of the Goods which City deems necessary to preserve and protect those portions of the Goods already in progress and to protect material, plant and equipment at the Goods site or in transit to the Goods site. D. Upon termination pursuant to Section 16.B, Supplier will be paid a pro rata portion of the compensation in the Agreement for any portion of the terminated Goods already delivered, including material and services for which it has made firm contracts which are not canceled, it being understood that City will be entitled to such material and services. Upon determination of the amount of said pro rata compensation, City will promptly pay such amount to Supplier upon delivery by Supplier of the releases of liens and affidavit, pursuant to Section 7.C. Section 17. FORCE MAJEURE A. Supplier shall not be held responsible for failure or delay in shipping nor City for failure or delay in accepting goods described herein if such failure or delay is due to a Force Majeure Event. B. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters occurring at the project site; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the work); (4) pandemics, epidemics or quarantine restrictions; and (5) strikes and other organized labor action occurring at the project site and the effects thereof on the work, only to the extent such strikes and other organized labor action are beyond the control of Supplier and its subcontractors, of every tier, and to the extent the effects   Packet Pg. 27 10 thereof cannot be avoided by use of replacement workers. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of the City in its capacity as a municipal authority. C. In the event of any such excused interference with shipments, City shall have the option either to reduce the quantity provided for in the order accordingly or to exercise its right of cancellation as set forth in this Agreement. Section 18. MISCELLANEOUS PROVISIONS. A. Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address or at such other address as the respective parties may provide in writing for this purpose: CITY: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: Precious Carter With Copy To: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: City Attorney SUPPLIER: Shor-Line Kennels 511 Osage Ave Kansas City, Kansas 66105 Attn: Timothy Hemmings 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. B. Assignment or Transfer. Supplier shall not assign or transfer any interest in this Agreement whether by assignment or novation, without the prior written consent of the City, which will not be unreasonably withheld. Provided, however, that claims for money due or to become due Supplier from the City under this Agreement may be assigned to a financial institution or to a trustee in bankruptcy, without such approval. Notice of any assignment or transfer, whether voluntary or involuntary, shall be furnished promptly to the City.   Packet Pg. 28 11 C. Successors and Assigns. This Agreement shall be binding on the successors and assigns of the Parties. D. Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. E. 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. F. Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in San Bernardino County. G. Attorneys’ Fees and Costs. If any action in law or equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, each Party shall pay its own attorneys’ fees. H. Interpretation. 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. I. No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. J. Authority to Enter 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. K. 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. L. Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. M. City’s Right to Employ Other Suppliers. City reserves its right to employ other contractors in connection with the Goods. N. Entire Agreement. This Agreement constitutes the entire agreement between the Parties relative to the Goods specified herein. There are no understandings, agreements, conditions, representations, warranties or promises with respect to this Agreement, except those contained in or referred to in the writing. O. Electronic Signature. Each Party acknowledges and agrees that this Agreement may be executed by electronic or digital signature, which shall be considered   Packet Pg. 29 12 as an original signature for all purposes and shall have the same force and effect as an original signature. [SIGNATURES ON FOLLOWING PAGE]   Packet Pg. 30 13 SIGNATURE PAGE TO GOODS PURCHASE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND SHOR-LINE IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date first above written. CITY OF SAN BERNARDINO APPROVED BY: Charles E. McNeely Interim City Manager ATTESTED BY: GENOVEVA ROCHA City Clerk APPROVED AS TO FORM: Best Best & Krieger LLP City Attorney SHOR-LINE Signature Name Title   Packet Pg. 31 14 Exhibit A Goods Specifications •17 double sided kennels, 12 feet by 4 feet with a guillotine door in the middle. o Front kennel doors to have ½ stainless steel with PVC overlay and ½ clear glass o Mesh tops on all kennels o T-cover drain in back of kennel •17 single sided kennels, 6 feet by 4 feet with a T-cover drain in the back of the kennel o Front kennel doors to have ½ stainless steel with PVC overlay and ½ clear glass o Mesh tops on all kennels •Double decker kennels with 6 separate kennel spaces o Guillotine door between kennels to increase space for housed pets o Stainless steel with PVC overlay   Packet Pg. 32 15 Exhibit B Delivery Schedule Goods to be delivered by November 30, 2023.   Packet Pg. 33 16 Exhibit C Fee Schedule   Packet Pg. 34 17   Packet Pg. 35   Packet Pg. 36   Packet Pg. 37   Packet Pg. 38   Packet Pg. 39   Packet Pg. 40   Packet Pg. 41 City of San Bernardino Finance Department, Purchasing Division JUSTIFICATION OF SINGLE/SOLE SOURCE REQUEST ITEM Description: __Shor-Line Kennels______________________DATE: __12/22/2022_______ Select Source: __X _Sole Source: Item is manufactured and/or only distributed by one vendor. ____Single Source: Item is available from several vendors, but item is the only one that will work Please answer all questions in detail, in order to prevent delays in the evaluation. Please do not provide one sentence answers. If any additional pages are needed to answer all questions, please attached all pages to this document. 1. Why is the acquisition restricted to this good/service/supplier? (Explain why the acquisition cannot be competitively bid). Please enter answer below: Shor-Line and Midmark, merged in 2021, making this the only large-scale manufacturer of kennels in the US. The merged company has almost 100 years of experience in constructing kennels specifically for veterinary hospitals and animal shelters. 2. Describe the uniqueness of the purchase (why was the good/service/supplier chosen?) Please enter the answer below: Shor-Line kennels use materials that are easy to sanitize and are proven to withstand daily wear and tear from large dogs. Shor-Line has a patented drain design making the kennels more sanitary and easier for staff to do daily cleaning and disinfection. The existing shelter has Shor-line kennels that were installed over 30 years ago – although the size of the kennels may not be consistent with current animal welfare industry standards, the kennels themselves are still in good working order and are a testament to the quality workmanship this company provides. 3. What are the consequences of not purchasing the good/service or contracting with the proposed supplier? We would not be able to complete the additional dog kennel building and would not have the kennel space needed to house the number of dogs coming to the shelter. The level of care the department can provide to sick animals would continue to be below current animal welfare standards. 4. What market research was conducted to substantiate the single source, including evaluation of other items considered? a. (Please provide a narrative of your efforts to identify other similar or appropriate goods/services, including a summary of how the department concluded that such alternative are either inappropriate   Packet Pg. 42 or unavailable. The names, addresses and phone numbers of suppliers contacted and the reasons for not considering then must be included or an explanation of why the survey or effort to identify other goods/services was not performed.) There is no alternative to these kennels. Chain link dog runs are not sufficient to house sick and injured animals. The materials used in the construction of these kennels as well as the design reduces the chance for illnesses to spread amongst the population. The construction of the drains is necessary for the department to ensure proper sanitation and humane housing of the dogs in their care. 5. How was the price offered determined to be fair and reasonable? Explain what the basis was for comparison and include cost analyses as applicable. (I.E. Compared to vendor’s previous or current offer to the city or to another agency/company – or any other method of comparison that will substantiate fair and reasonable pricing in the absence of competition) The price of the kennels is standard throughout the industry. 6. Describe any cost savings realized or costs avoided by acquiring the goods/services from this supplier. In order to have something similar, we would need to have a contractor design and then build the kennels. It is unknown what the cost for this would be, or if the final product would be comparable to the kennels from Shor-Line. Shor-Line is a factory direct manufacturer of these products and have years of experience in this specialty.   Packet Pg. 43 Shor-Line is a factory direct manufacture and is sole source in the veterinary education, animal control and animal humane organizations for custom Shor-Line products in the United States of America. Thank You Timothy Hemings Southwestern Sales Rep E: THemings@midmark.com T: 1.800.444.1579, ext. 2354 C: 909.496.0251 shor-line.com   Packet Pg. 44 1 1 3 2 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:March 15, 2023 To:Honorable Mayor and City Council Members From:Charles E. McNeely, Interim City Manager; Nathan Freeman, Agency Director of Community and Economic Development Department:Community, Housing, and Economic Development (CED) Subject:Irrevocable Agreement to Annex No. 2023-373 (Ward 6) Recommendation It is recommended that the Mayor and City Council of San Bernardino, California, adopt Resolution No. 2023-042 of the Mayor and City Council of the City of San Bernardino, California: 1.Approving the application to the Local Agency Formation Commission to provide City sewer services to property located within the unincorporated territory at 2971 North Macy Street, San Bernardino, California; and 2.Authorizing the City Manager to execute an Irrevocable Agreement to Annex. Background In 1994, the California Government Code Section was amended by the addition of Section 56133, which requires the Local Agency Formation Commission (LAFCO) to approve the provision of new City services outside its corporate boundaries. The annexation of single parcels is not desirable since it creates uneven boundaries and creates confusion regarding the delivery of other City services. The subject property is contiguous to City boundaries; however, annexation of this property would result in other islands. In September of 1997, the City of San Bernardino adopted Resolution No. 97-275, a policy relative to the provision of sewer services outside of City boundaries. The policy includes a payment of $1,300 for the initial sewer connection application processing fee. Additionally, petitioners will pay all LAFCO related fees directly to LAFCO and the normal sewer capacity and connection fees to the Water Department for processing the Irrevocable Annexation Agreement.   Packet Pg. 45 1 1 3 2 The policy also requires the land use to be consistent with the City's General Plan and the property owner to execute an "Irrevocable Agreement to Annex" in the event that this property is included in an annexation proceeding sometime in the future. Discussion On December 13, 2022, the San Bernardino Water Department received a request for sewer services from the owners of a parcel located at 2971 North Macy Street (APN: 0268-051-32) for a connection to the sewer collection system. The property owner is abandoning the existing septic tank and desires to connect to the sewer collection. The Water Department has indicated that there is adequate capacity at the wastewater treatment plant to serve the subject property and the Water Department has indicated that the existing industrial use is consistent with the City's General Plan. The Water Department has determined that there is an available 18-inch vitrified clay pipe sanitary sewer main within June Street, fronting the subject parcel. LAFCO requires the Agency providing the service to complete the application. The resolution will allow the City to submit an application to LAFCO if approved by Mayor and City Council. Upon approval by LAFCO, the Irrevocable Agreement to Annex will be executed between the City and the property owner. 2021-2025 Strategic Targets and Goals The Irrevocable Agreement to Annex is consistent with Key Target No. 4: Economic Growth & Development, specifically 4b: Update the General Plan and Development Code, as it ensures this property meets General Plan use and will be included in a future City annexation of this unincorporated area. Fiscal Impact There is no fiscal impact associated with this action. The sewer connection and application processing fee of $1,300 has been paid by the applicant. The applicant will also pay the corresponding sewer capacity and connection fees to the Water Department, and other LAFCO application fees. Conclusion It is recommended that the Mayor and City Council of San Bernardino, California, adopt Resolution No. 2023-042 of the Mayor and City Council of the City of San Bernardino, California: 1.Approving the application to the Local Agency Formation Commission to provide City sewer services to property located within the unincorporated territory at 2971 North Macy Street, San Bernardino, California; and 2.Authorizing the City Manager to execute an Irrevocable Agreement to Annex. Attachments Attachment 1 - Resolution No. 2023-042 Attachment 2 - Exhibit A - Irrevocable Agreement to Annex   Packet Pg. 46 1 1 3 2 Attachment 3 - Vicinity Map Attachment 4 - Application Ward Sixth Ward Synopsis of Previous Council Actions September 2, 1997 The City of San Bernardino adopted Resolution No. 97-275 relative to the providing of sewer services outside of City boundaries.   Packet Pg. 47 Resolution No. 2023-042 Resolution No. 2023-042 March 15, 2023 Page 1 of 3 2 1 0 5 RESOLUTION NO. 2023-042 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE APPLICATION TO THE LOCAL AGENCY FORMATION COMMISSION TO PROVIDE CITY SEWER SERVICES TO PROPERTY LOCATED WITHIN THE UNINCORPORATED TERRITORY AT 2971 NORTH MACY STREET, SAN BERNARDINO, CALIFORINA; AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN IRREVOCABLE AGREEMENT TO ANNEX WHEREAS, Octavio Quezada and Lucina A. Galicia, husband and wife as joint tenants, the owners of the property located in the unincorporated area at 2971 North Macy Street, San Bernardino, California, also known as Assessor’s Parcel Number 0268-051-32, have requested connection to the City of San Bernardino’s sewage system; and WHEREAS, said Property is located within the City’s Sphere of Influences; and WHEREAS, pursuant to Section 2.28.030 (Service outside City Limits) of the San Bernardino Municipal Code, the Mayor and City Council must approve any water and sewer service outside the corporate limits of the City of San Bernardino; and WHEREAS, pursuant to California Government Code Section 56133, a city or district may provide new or extended services by contract or agreement outside its jurisdictional boundaries subject to approval from the Local Agency Formation Commission (LAFCO); and WHEREAS, pursuant to Resolution No. 97-275 the property owners requesting connection to the City’s sewage system must pay all applicable fees required by the City, San Bernardino Municipal Water District, and LAFCO. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1.The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. That the Mayor and City Council of the City of San Bernardino hereby authorize an application to the LAFCO for the connection to the City’s sewage system for property located at 2971 North Macy Street, Assessor’s Parcel Number 0268-051-32, more fully described as follows:   Packet Pg. 48 Resolution No. 2023-042 Resolution No. 2023-042 March 15, 2023 Page 2 of 3 2 1 0 5 The North 100 feet of the South 170 feet of Lot 262, Tract No. 2258, in the County of San Bernardino, State of California, as per Plat recorded in Book 32 of Maps, Pages 72-77, inclusive, records of said County. Excepting therefrom the East 70 feet thereof. Also excepting therefrom the Northerly 10 feet thereof. SECTION 3. The City Manager is hereby authorized to execute an Irrevocable Agreement to Annex No. 2023-373, a copy of which is attached as Exhibit “A”. SECTION 4. The City Clerk of said City is hereby authorized and directed to file, or cause to be filed, a certified copy of this resolution with the Executive Officer of the LAFCO. 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 15th day of March 2023. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 49 Resolution No. 2023-042 Resolution No. 2023-042 March 15, 2023 Page 3 of 3 2 1 0 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 Resolution No. 2023-042, adopted at a regular meeting held on the 15th day of March 2023 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2023. Genoveva Rocha, CMC, City Clerk   Packet Pg. 50 EXHIBIT A RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of San Bernardino 290 N. D Street San Bernardino, California 92401 Attn: City Manager APN: 0268-051-32-0000 Exempt from Recording fee pursuant to Gov't Code §§ 27383, 6103 (Space above for Recorder’s use) IRREVOCABLE AGREEMENT TO ANNEX No. 2023-373 This I r r e v o c a b l e A g r e e m e n t to A n n e x (“Agreement), is entered into this 15th day of March, 2023; by and between Octavio Quezada and Lucina A. Galicia, husband and wife as joint tenants, hereinafter referred to as “OWNERS,” and the CITY OF SAN BERNARDINO, a charter city and municipal corporation, hereafter referred to as a “CITY.” OWNERS and CITY may be referred to in this Agreement individually as “Party” and collectively as “Parties”. RECITALS: WHEREAS, OWNERS hold title to the one parcel located at 2971 North Macy Street, San Bernardino, California, and parcel is further described as follows: The North 100 feet of the South 170 feet of Lot 262, Tract No. 2258, in the County of San Bernardino, State of California, as per Plat recorded in Book 32 of Maps, Pages 72 to 77, inclusive, records of said County. with Assessor’s Parcel Number: 0268-051-32 (“Property”). WHEREAS, the Property is within the CITY’s sphere of influence; and WHEREAS, OWNERS desire to obtain CITY’s sewage system and wastewater treatment plant service for the Property; and WHEREAS, CITY’s sewage system and wastewater treatment plant service could be provided to the Property by connecting to the CITY’s sewage system; and WHEREAS, CITY’s sewage system and wastewater treatment plant have sufficient capacity to convey and treat the sewage generated by the Property; and WHEREAS, the covenants and conditions set forth herein shall create an equitable   Packet Pg. 51 IRREVOCABLE AGREEMENT TO ANNEX NO. 2023-373 LAFCO SC # _____ servitude upon the parcel, and shall be fully binding upon OWNERS’ heirs, successors and assigns. NOW, THEREFORE, the Parties hereto agree as follows:   Packet Pg. 52 IRREVOCABLE AGREEMENT TO ANNEX NO. 2023-373 LAFCO SC # _____ SECTION I OWNERS AGREE: a. To consent to the annexation of the Property to the CITY. OWNERS agree to covenant for itself, its agents, employees, contractors, heirs, successors and assigns (“Successors”) not in any way object to, protest, delay, frustrate or otherwise impede any annexation proceedings concerning the annexation of the Property to the CITY. OWNERS and their Successors shall cooperate in every reasonable way with the requests of the CITY, the San Bernardino Local Agency Formation Commission (“LAFCO”), or any other public agency in any proceedings to annex the Property to the CITY. The OWNERS and their Successor’s cooperation shall include, but not be limited to, the filing of all necessary applications, petitions, plans, drawings, and any other documentation or information required by the CITY, LAFCO, or any other public agency. b. To pay such annexation fees and costs and other municipal charges as would ordinarily be charged in the annexation of property to the CITY. Said fees shall be payable when the same becomes due and payable. c. To pay all fees and charges and make all deposits required by the CITY to connect to and use the CITY’s sewage system and wastewater treatment plant service system, and further agrees to be bound by all CITY ordinances, rules and regulations respecting the sewage system. d. To acknowledge that execution of this Agreement to annex is on behalf of all future heirs, successors and assigns; and that said Agreement shall be irrevocable without written consent of CITY. e. To comply with the San Bernardino Municipal Code, General Plan (emphasis on the circulation plan-street section) and any rules and regulations promulgated by the Water Board of the San Bernardino Municipal Water Department relating to CITY’s sewage system and wastewater treatment plant service system. f. To make application to LAFCO and allow CITY to make application on behalf of the OWNERS and pay all application fees, for approval to connect to CITY’s sewage system, pursuant to Section 56133 of the Government Code. g. To execute a standard form agreement with CITY stipulating the terms and conditions under which the connection to the CITY’s sewage system and wastewater treatment plant service system shall be made and maintained. h. OWNERS acknowledge and agree that if CITY determines that any attempted annexation fails or is unreasonably delayed because the OWNERS or Successor failed to exercise good faith and best efforts to cause or assist in permitting the annexation to occur, any connection to CITY’s sewage system and wastewater treatment plant service system permitted or authorized by this agreement may   Packet Pg. 53 IRREVOCABLE AGREEMENT TO ANNEX NO. 2023-373 LAFCO SC # _____ be disconnected at the sole option of CITY and upon reasonable notice to the OWNERS to provide for alternative service. i. OWNERS agree to maintain the Property in good condition and in compliance with reasonable standards. Reasonable standards are defined as the level of maintenance service necessary to keep the appearance and operation of the Property free from visible defects, deterioration, dirt and debris. j. OWNERS shall indemnify, defend, and hold the CITY and its officials and staff harmless from any and all liability, claims, costs (including reasonable attorneys’ fees), damages, expenses and causes of action resulting from any construction performed under or otherwise related to performance of this Agreement. SECTION II CITY AGREES: a. To allow OWNERS’ parcel, described hereinbefore, to connect to CITY’s sewage system and wastewater treatment plant service system, subject to payment of all applicable fees and permits. SECTION III BE IT MUTUALLY AGREED, AS FOLLOWS: a. City Clerk for CITY shall record this Agreement with the County Recorder. b. The benefit to the subject parcel will inure to the benefit of subsequent owners, their heirs, successors, and assigns, and the agreements, conditions, and covenants contained herein shall be binding upon them and upon the land. c. The approval granted to connect said parcel to CITY’s sewage system and wastewater treatment plant service system is contingent upon OWNERS securing approval from LAFCO. d. This Agreement may be executed in counterparts. e. CITY and OWNERS acknowledge that this Agreement is the product of mutual arms-length negotiation and drafting. Accordingly, the rule of construction which provides the ambiguities in a document shall be construed against the drafter of that document shall have no application to the interpretation and enforcement of this Agreement. In any action or proceeding to interpret or enforce this Agreement, the finder of fact may refer to any extrinsic evidence not in direct conflict with any specific provision of this Agreement to determine and give effect to the intention of the parties. f. This Agreement may only be amended by the written consent of all of the Parties at the time of such amendment. If either Party commences an action against the other Party arising out of or in connection with this Agreement, the   Packet Pg. 54 IRREVOCABLE AGREEMENT TO ANNEX NO. 2023-373 LAFCO SC # _____ prevailing party shall be entitled to have and recover from the losing Party reasonable attorneys’ fees and costs of suit, and, if CITY is awarded such attorneys’ fees and costs, such award shall constitute a lien upon the Property. g. Failure to insist on any one occasion upon strict compliance with any of the terms, covenants or conditions hereof shall not be deemed a waiver of such term, covenant, or condition, nor shall any waiver or relinquishment of any rights or powers hereunder at any one time or more times be deemed a waiver or relinquishment of such other right or power at any other time or times. h. This Agreement has been executed in and shall be governed by the laws of the State of California. Venue shall be in the County of San Bernardino.   Packet Pg. 55 IRREVOCABLE AGREEMENT TO ANNEX NO. 2023-373 LAFCO SC # _____ SIGNATURE PAGE TO IRREVOCABLE AGREEMENT TO ANNEX IN WITNESS WHEREOF, the Parties hereto have caused this agreement to be entered into as of the Effective Date set forth above. CITY OF SAN BERNARDINO Approved By: OWNERS __________________________________ _______________________________ Charles E. McNeely Signature Interim City Manager ______ Octavio Quezada __________ Name __________________________________ City Attorney _______________________________ Signature Attested By: ____ Lucina A Galicia Name __________________________________ Genoveva Rocha CMC, City Clerk   Packet Pg. 56 IRREVOCABLE AGREEMENT TO ANNEX NO. 2023-373 LAFCO SC # _____ ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of ) On before me, (insert name and title of the officer) personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal)   Packet Pg. 57 IRREVOCABLE AGREEMENT TO ANNEX NO. 2023-373 LAFCO SC # _____ ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of ) On before me, (insert name and title of the officer) personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal)   Packet Pg. 58 Vicinity Map Irrevocable Agreement to Annex 2023-373 (Ward 6)   Packet Pg. 59   Packet Pg. 60 1 1 6 9 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:March 15, 2023 To:Honorable Mayor and City Council Members From:Charles E. McNeely, Interim City Manager; Nathan Freeman, Agency Director of Community, Housing, and Economic Development Department:Community, Housing, & Economic Development (CED) Subject:Memorandum of Understanding Between the City of San Bernardino and the San Bernardino Municipal Water District Regarding the Land Designation of 796 E. 6th Street, 3250 Harrison Street, and Glendenning Way Properties (Wards 1 & 7) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2023-043 of the Mayor and City Council of San Bernardino, California, approving a Memorandum of Understanding (MOU) between the City of San Bernardino and the San Bernardino Municipal Water District regarding the land designation of 796 E. 6th Street, 3250 Harrison Street, and Glendenning Way and authorize the Interim City Manager, or his designee, to execute the MOU. Background The City of San Bernardino owns properties located at 3250 Harrison Street (APN: 0153-201-14-0000) and an undeveloped piece of land known as “Glendenning Way” (APN: 0153-161-07-0000). The property located at 3250 Harrison Street was previously leased to the County of San Bernardino and designated as a Mountain Search and Rescue Station. The most recent lease with the County of San Bernardino expired in May of 2018 and the property has remained vacant since this time. Moreover, the property located at Glendenning Way is currently undeveloped and zoned for flood control use. The location, size, and zoning of this property would likely prohibit future residential or commercial development and offers limited future utility to the City. The City of San Bernardino Municipal Water Department owns the property located at   Packet Pg. 61 1 1 6 9 796 E. 6th Street (APN 0278-191-30). This property is approximately 2.48 acres and was most recently occupied by the School of Hope, which serviced developmentally disabled adults. The Water Department’s lease agreement with the School of Hope terminated in November of 2022. The Water Department has since determined that there is no use for this site. In April of 2021, the Water Department conducted a groundwater well siting study to identify new well locations. The Water Department currently operates 51 groundwater wells which provide 100% of the Department’s water supply. However, additional wells are necessary to ensure efficient and reliable water supply for the community. The Water Department’s study identified several new potential groundwater well sites throughout the City, including the City-owned properties located at 3250 Harrison Street and Glendenning Way. These two properties are not currently designated for Water Department use. At the request of City and Water Department staff, appraisals were performed on all three properties. The Water Department’s property, located at 796 E. 6th Street, was valued at $1,062,000, assuming that the existing structures were to be demolished and the site was ready for development. Additionally, 3250 Harrison Street was valued at $330,000 and Glendenning Way valued at $75,000. Lastly, the cost of demolished the structure on the 796 E. 6th Street is $687,500 (Attachment 6). When subtracting the cost of demolition from the appraised value of the property ($1,062,000), the net present value of the property is $374,500. Discussion Redesignation of land use of the aforementioned properties is proposed to allow the City to utilize the property located at 796 E 6th Street as a homelessness navigation center and to allow the Water Department to utilize the 3250 Harrison and Glendenning Way properties for groundwater wells. The subject MOU, outlining the actions that will allow the redesignations, has been developed by Water Department and City staff, along with the City Attorney’s office. On February 14, 2023, the Water Board unanimously approved the redesignation of all three properties and authorized the General Manager to execute the Memorandum of Understanding. Staff is now recommending that the City Council approve the redesignation of all three properties and authorize the City Manager to execute the Memorandum of Understanding. 2021-2025 Strategic Targets and Goals This project is consistent with Key Target No 3. Improved Quality of Life. This project will contribute to ensuring the City is clean and attractive through mitigating the effects of homelessness and provide the much-needed infrastructure designed for sustained success.   Packet Pg. 62 1 1 6 9 Fiscal Impact As previously noted, the value of the Water Department property located at 796 E. 6th Street is calculated as follows: appraised value ($1,062,000) subtracting demolition costs of ($687,500) = net value of $374,500. The value of City properties located at 3250 Harrison Street and Glendenning Way are $330,000 and $75,000, respectively (collectively $405,000). At the conclusion of this Land Designation, the Water Department will owe the City $30,500 ($405,000 (Value of City properties) - $374,500 (Value of Water Property) = $30,500 due to City). This balance will be paid from the Water Department to the City resulting in a net zero value deficiency. Conclusion It is recommended that the Mayor and City Council of San Bernardino, California, adopt Resolution No. 2023-043 of the Mayor and City Council of San Bernardino, California, approving a Memorandum of Understanding (MOU) between the City of San Bernardino and the San Bernardino Municipal Water District regarding the land designation of 796 E. 6th Street, 3250 Harrison Street, and Glendenning Way and authorize the Interim City Manager, or his designee, to execute the MOU. Attachments Attachment 1 – Resolution of Intention No. 2023-043 Attachment 2 – Resolution Exhibit A - Memorandum of Understanding Attachment 3 – 796 E. 6th Street Appraisal Attachment 4 – 3250 Harrison Street Property Appraisal Attachment 5 – Glendenning Way Appraisal Attachment 6 – 796 E. 6th Street Demolition Cost Estimate Ward: First Ward; Seventh Ward Synopsis of Previous Council Actions: None   Packet Pg. 63 Resolution No. 2023-043 Resolution No. 2023-043 March 15, 2023 Page 1 of 4 2 2 2 4 RESOLUTION NO. 2023-043 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SAN BERNARDINO AND THE SAN BERNARDINO MUNICIPAL WATER DISTRICT REGARDING THE LAND DESIGNATION OF 796 E. 6TH STREET, 3250 HARRISON STREET, AND GLENDENNING WAY PROPERTIES WHEREAS, it has been the practice of the City and Water Department to document transfers between the General Fund, Water Fund, and Sewer Fund with Memorandums of Understanding between the Mayor and Common Council, acting as the highest governing body of the City with relation to the General Fund, and the Water Board, acting as the highest governing body of the City with relation to the Water Fund and Sewer Fund, to demonstrate compliance with Proposition 218 (Article XIII D, Section 6 of the Constitution of the State of California); and, WHEREAS, the City is the owner of that certain real property and improvements located at 3250 Harrison Street (Assessor Parcel Number 0153-201-14-0000), in the City of San Bernardino, County of San Bernardino, State of California, more particularly described in Attachment “2” to Exhibit “A” attached hereto and incorporated herein by this reference as though set forth in full (the “Harrison Street Property”); and, WHEREAS, the City is the owner of that certain real property and improvements located at Glendenning Way (Assessor Parcel Number 0153-161-07-0000), in the City of San Bernardino, County of San Bernardino, State of California, more particularly described in Attachment “3” to Exhibit “A” attached hereto and incorporated herein by this reference as though set forth in full (the “Glendenning Way Property”); and, WHEREAS, the Harrison Street Property and Glendenning Way Property are designated for general government use and have a fair market value of three hundred thirty thousand dollars ($330,000) and seventy-five thousand dollars ($75,000), respectively, as determined by independent appraisal; and WHEREAS, the best use of the Harrison Street Property and Glendenning Way Property would be designation for use by the Water Department; and, WHEREAS, the City of San Bernardino (“City”) is the owner of that certain real property and improvements comprising of approximately 2.5 acres located at 796 East 6th Street, in the City of San Bernardino, County of San Bernardino, State of California, a portion of the property with assessor’s parcel number 0278-191-30, more particularly described in Attachment “1” to Exhibit “A” attached hereto and incorporated herein by this reference as though set forth in full (the “6th Street Property”); and,   Packet Pg. 64 Resolution No. 2023-043 Resolution No. 2023-043 March 15, 2023 Page 2 of 4 2 2 2 4 WHEREAS, the City previously designated the 6th Street Property for use by the Water Department; and, WHEREAS, the best use of the 6th Street Property would be to remove the designation for use by the Water Department; and, WHEREAS, the 6th Street Property has a fair market value of one million sixty-two thousand dollars ($1,062,000) as determined by independent appraisal and this appraised value assumes demolition work at the property with an estimated cost of six hundred eighty-seven thousand five hundred dollars ($687,500) more particularly described in Attachment “4” to Exhibit “A” attached hereto and incorporated herein by this reference as though set forth in full (796 E. 6th Street Demolition Cost Estimate); and, WHEREAS, given the value of the Harrison Street, Glendenning Way, and 6th Street properties and the avoided demolition cost of the 6th Street Property, a balance of thirty thousand five hundred dollars ($30,500) remains requiring a transfer from the Water Fund to the General Fund. 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 of the City of San Bernardino, California is hereby authorized and directed to execute on behalf of the City of San Bernardino a Land Designation Memorandum of Understanding attached hereto as Exhibit “A” and incorporated herein by this reference as though set forth in full. SECTION 3. The City Manager of the City of San Bernardino, California is hereby authorized and directed to execute such further documents as may be necessary to carry out the purposes of this Resolution, including any documents necessary to effectuate the designation of properties contemplated by the Memorandum of Understanding, so long as such further documents are approved as to form and content by the City Attorney’s Office. SECTION 4. CEQA. The Mayor and City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 5. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 6. Effective Date. This Resolution shall become effective immediately.   Packet Pg. 65 Resolution No. 2023-043 Resolution No. 2023-043 March 15, 2023 Page 3 of 4 2 2 2 4 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 15th day of February 2023. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 66 Resolution No. 2023-043 Resolution No. 2023-043 March 15, 2023 Page 4 of 4 2 2 2 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. 2023-043, adopted at a regular meeting held on the 15th day of February 2023 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of ____________ 2023. Genoveva Rocha, CMC, City Clerk   Packet Pg. 67 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND WATER DEPARTMENT REGARDING LAND DESIGNATIONS OF CERTAIN PROPERTIES PAGE 1 OF 6 MEMORANDUM OF UNDERSTANDING REGARDING LAND DESIGNATIONS OF CERTAIN PROPERTIES This Memorandum of Understanding (“MOU”) is made and entered into this ___ day of ____________, 2023, by and between: the City of San Bernardino (“City”), a charter city governed by the Mayor and City Council acting as the highest governing body of the City with regards to general government services; and, the San Bernardino Municipal Water Department (“Department”), a department of the City created by the City Charter and governed by the Water Board Commissioners of the City of San Bernardino (“Water Board”), acting as the highest governing body of the Department (individually the City and Department may be referred to as a “Party” and collectively the City and Department may be referred to as the “Parties”). RECITALS: WHEREAS, in accordance with the City Charter, the Mayor and City Council serve as the highest governing body of the City with respect to general tax revenues, expenditures, assets, and liabilities, collectively accounted for in the general fund; and, WHEREAS, in accordance with the City Charter, the Water Board is the highest governing body of the City with respect to water utility and sewer utility revenues, expenditures, assets, and liabilities, collectively accounted for in the Water Fund and Sewer Fund, respectively; and, WHEREAS, the Mayor and City Council of the City have determined that it is the in the best interests of the City to designate for the use of the Department certain real property located at 3250 Harrison Street in the City of San Bernardino(the “Harrison Street Property”) with a fair market value of three hundred thirty thousand dollars ($330,000) as determined by independent appraisal, and certain real property located at Glendenning Way in the City of San Bernardino (the “Glendenning Way Property”) with a fair market value of seventy-five thousand dollars ($75,000) as determined by independent appraisal; and, WHEREAS, the Harrison Street Property and the Glendenning Way Property are more particularly described on Attachment “1” attached hereto and incorporated herein by this reference as though set forth in full; and, WHEREAS, the Water Board has determined that approximately 2.5 acres of real property located at 796 East 6th Street in the City of San Bernardino (the “6th Street Property”) with a fair market value of one million sixty-two thousand dollars ($1,062,000) as determined by an independent appraisal, is no longer necessary for use by the Department; and,   Packet Pg. 68 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND WATER DEPARTMENT REGARDING LAND DESIGNATIONS OF CERTAIN PROPERTIES PAGE 2 OF 6 WHEREAS, the 6th Street Property is more particularly described on Attachment “2” attached hereto and incorporated herein by this reference as though set forth in full; and, WHEREAS, an estimated six hundred eighty-seven thousand five hundred dollars ($687,500) of demolition work at the 6th Street Property is necessary to achieve the appraised fair market value; and, WHEREAS, given the value of the properties and the avoided demolition cost of the 6th Street Property, a balance of thirty thousand five hundred dollars ($30,500) remains requiring a transfer from the Department (specifically, from the Water Fund) to the City (specifically, to the General Fund); and, WHEREAS, it has been the practice of the City to document transfers between the General Fund, Water Fund, and Sewer Fund with Memoranda of Understanding to demonstrate compliance with Proposition 218 (Article XIII D, Section 6 of the Constitution of the State of California). NOW, THEREFORE, the Parties agree as follows: 1. The recitals set forth in “RECITALS” are, by this reference, incorporated into and deemed a part of this MOU. 2. The City shall, by resolution of the Mayor and City Council, designate that certain real property and improvements at the Harrison Street Property and the Glendenning Way Property for use by the Department. 3. The Department accepts the designation of the Harrison Street Property and the Glendenning Way Property for use by the Department. 4. The Department shall, by resolution of the Water Board, remove the designation for use by the Department of the 6th Street Property. 5. The Department shall transfer thirty thousand five hundred dollars ($30,500) from the Department’s Water Fund to the City’s General Fund. 6. The City accepts the removal of the designation for use by Department of the 6th Street Property and a transfer of thirty thousand five hundred dollars ($30,500) from the Department’s Water Fund to the City’s General Fund. [Signature Page Follows]   Packet Pg. 69 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND WATER DEPARTMENT REGARDING LAND DESIGNATIONS OF CERTAIN PROPERTIES PAGE 3 OF 6 MEMORANDUM OF UNDERSTANDING REGARDING LAND DESIGNATIONS OF CERTAIN PROPERTIES By and between the City of San Bernardino, governed by the Mayor and City Council, and the San Bernardino Municipal Water Department, governed by the Water Board, for the land designation of certain properties. Date: ______________________ Date: ______________________ APPROVED AS TO FORM: By: ________________________________ City Attorney, Best Best & Krieger LLP CITY OF SAN BERNARDINO: By: ________________________________ Charles E. McNeely, City Manager SAN BERNARDINO MUNICIPAL WATER DEPARTMENT: By: ________________________________ Miguel J. Guerrero, General Manager   Packet Pg. 70 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND WATER DEPARTMENT REGARDING LAND DESIGNATIONS OF CERTAIN PROPERTIES PAGE 4 OF 6 Attachment “1” Harrison Street Property and Glendenning Property Marshall Blvd Harrison Property APN: 0153-201-14 Area: 3.7 acres Appraised Value: $330,000 Harrison Street   Packet Pg. 71 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND WATER DEPARTMENT REGARDING LAND DESIGNATIONS OF CERTAIN PROPERTIES PAGE 5 OF 6 Attachment “1” Harrison Street Property and Glendenning Property Glendenning Way Glendenning Property APN: 0153-161-07 Area: 1.8 acres Appraised Value: $75,000 Valencia AveParkdale Drive   Packet Pg. 72 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND WATER DEPARTMENT REGARDING LAND DESIGNATIONS OF CERTAIN PROPERTIES PAGE 6 OF 6 Attachment “2” 6th Street Property 6th Street 6th Street Property APN: Portion of 0278-191-30 Area: 2.5 acres Appraised Value: $1,062,000 Pedley Road   Packet Pg. 73 1 Appraisal Report Prepared on the Former School of Hope Site Located at 796 E. Sixth Street, San Bernardino, CA Consisting of 2.48 acres of APN 0278-191-30 Prepared for the City of San Bernardino Municipal Water Department Effective Date of Value November 28, 2022 Prepared by Steven R. Smith, MSREA, MAI, SRA 800 Community College #114 San Jacinto, CA 92583 steves@srsrea.com 909 856 6841   Packet Pg. 74 2 Steven R. Smith, MSREA, MAI, SRA • Real Estate Consultants • Market Studies • Risk Analysis • Appraisals • 800 Community College Drive #114, San Jacinto, CA 92583 909-856-6841, srsrea@yahoo.com 12/2/22 Purpose: The purpose of the appraisal is to estimate the as is market value of 2.48 acres of land situated on a 23.11 acre parcel. Intended Use/Client and Intended Users: The intended use of this appraisal report is to provide asset value to the named client, as of the effective date for asset disposition. This report may not be used for any purpose, or by any other party, than to whom it is addressed, and the appraisers specifically disclaim any liability to such unauthorized third parties. Scope of Work: The scope of work included an inspection of the property and its environs and research into market data for comparison purposes. Property Rights Appraised: The unencumbered ownership interest. Effective Date of Value: November 28, 2022 Market Value Estimates: $1,062,000+5% Respectfully, Steven R. Smith, MSREA, MAI, SRA AG 2123, expires 7/15/23   Packet Pg. 75 3   Packet Pg. 76 4 PROPERTY HISTORY The property has not sold in the last 3-years MARKET AND EXPOSURE TIME Exposure period is the amount of time the real property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. Marketin g period is an opinion of the amount of time it might take to sell the real property interest after the effective date of the appraisal. Sales of similar type properties, including the sale comparables used in this report were analyzed and had a wide range of exposure periods. According to knowledgea ble professionals, the marketing time for properties like the subject varies considerably. According to interviews with brokers and market participants involved in these transactions, an adequate exposure for the subject would be approximately one to three months if properly priced and marketed. Based on our findings, we believe an exposure and marketing time of 1-3 months for the subject property is considered reasonable and appropriate. HYPOTHETICAL CONDITION The property is being appraised as if it were vacant multi-Family zoned land available for development, free from contamination or environmental hazards. PROPERTY DESCRIPTION Property information came from assessor records online Internet research in an interview with the client. The overall property is 21.33 acres. The part being appraised is 2.48 acres as shown on the following map.   Packet Pg. 77 5 At the request of the client, we are appraising the smaller parcel of 2.48 acres which has been used as a school site, As If is a standalone parcel which is a hypothetical. Further we are appraising the smaller parcel as if it has been cleared of all improvements and site improvements, is free from contamination and available for development. The client informs us that they are getting bids to demolish the improvements, clear the site and dispose of the materials on site. This appraisal is as if the site were vacant and available for development to its highest and best use. We have further been informed that the likely zoning on the property if not owned by the City would be Multi-Family residential.   Packet Pg. 78 6   Packet Pg. 79 7 IMPROVEMENT DESCRIPTION Property Type: Specialty – School/Classroom Buildings No. of Perm. Bldgs.: 5 (as shown below) Year Built: 1956 (estimated) Subject Unit Area (SF): 16,342 SF (NRA); as follows: Parking: We estimate parking capacity of 35-40 vehicles throughout parking lot. FF&E: Furniture, fixtures and equipment are not given any consideration in the valuation analysis.   Packet Pg. 80 8 Improvemen t Discussions Improvement #1 (Art Studio/Workshops): The interior improvements include a mix of vinyl tile, exposed concrete flooring, and ceramic tile in the restrooms. Partitions are painted drywall and ceilings are primarily stipple (“popcorn”) with some painted drywall in the restrooms . Lighting is primarily surface-mounted fluorescent throughout. There is a fire alarm system and 4 restrooms. We observed many items of deferred maintenance and this improvement is considered to be in below average to poor condition. We note that we were provided with a hand -drawn sketch that showed the exterior measurements of this building to be 161’ x 45’ (area of 7,245 SF). Our on-site measurements of this building were 160’ x 36’ which calculates to an area of 5,760 SF – a figure that will be utilized in the valuation section of this report. Improvement #2 (Administration Building): The interior improvements include carpet flooring throughout, ceramic tile in the restroom, painted drywall partitions, and a mix of stipple (“popcorn”) and T-bar ceiling with acoustic tiles. Lighting is primarily surface-mounted fluorescent lighting. There is a fire alarm system and we only observed two restrooms. We observed that the interior of this improvement had recently been updated with new carpet and paint and we did not see any items of deferred maintenance. Improvement #3 (Classrooms): At the time of our inspection, the interior of this building was completely gutted, including demoed concrete for what appeared to be plumbing purposes, and we observed active remodeling taking place. It appears that there are 8 classrooms containing 1 to 2 restrooms per room. For the purposes of the valuation section of this report, it is an assumption of this report that the renovations have been completed. Improvement #4 (Workshop): We were not provided interior access to this improvement during our inspection. The exterior of this improvement is in poor condition and it is our opinion that it does not provide contributory value to the property. As such, the square footage of this improvement will not be considered in the valuation section of this report. Improvement #5 (Garden Shed): We were not provided interior access to this improvement during our inspection. The exterior of this improvement is in poor condition and it is our opinion that it does not provide contributory value to the property. As such, the square footage of this improvement will not be considered in the valuation section of this report. Site Improvements Site improvements include good-condition iron fencing/gates along the perimeter of the property , a permanent basketball hoop, some landscaping along the property’s frontage (including trees). Approximately 61% of the subject property is paved with asphalt or concrete, most of which is worn and in need of repair/resurfacing. Additionally, there are two covered patio areas.   Packet Pg. 81 9 HIGHEST AND BEST USE The property is zoned for Public Service. It is the intent of the owners to demolish and dispose of the improvements on the property which have reached the end of their economic life. We are appraising the property As If Vacant and available for its highest and best use. City officials indicated that if the land were vacant it would be zoned for Multi Family development. Our data search included looking for medium to high density unimproved and unentitled residential land in the City. Most the high density residential land in the City has already been developed. Therefore we included some lower density sales also.   Packet Pg. 82 10 VALUATION ANALYSIS The following analysis represents the Market Data (or Sales Comparison) Approach. The selection criterion included looking for sales that had zoning that would allow similar uses to that of the subject. Our survey uncovered sufficient comparable sales that were located in the subject’s market area within the City and considered useful value indicators for the subject site. In the course of this assignment, we analyzed closed sales and active for-sale listings and ultimately selected several that are exemplary and considered to be most similar to the subject. The following is the list of selected comparables:   Packet Pg. 83 11 1 Recent sales of properties that have one or more major points of comparison, indicates a range from $59 per Square Foot to $97 and a mean of $78, median of $76. The Subject improvements are larger than most and a portion of the building size is worksho p area. For these reasons, I have concluded that the most probable a value is $65/SF within a 5% range, or $61.75 to $68.25. The value based on 16,342 square feet of improvements at $65/SF calculates as $1,062,230. My conclusion is that the most probable market value is closest to $1,062,000.   Packet Pg. 84 12 ADDENDA Definition of Market Value: "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: Buyer and seller are typically motivated; Both parties are well informed or well advised, and acting in what they consider their own best interests; A reasonable time is allowed for exposure in the open market; Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale." (Source: Code of Federal Regulations, Title 12, Chapter I, Part 34.42(g]; also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77472) Definition of As Is Market Value As is: "The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date." (Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015); also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77471) Definition of Hypothetical Condition: A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. Comment: Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. Definition of Eminent Domain: “The right of government to take private property for public use upon the payment of just compensation. The Fifth Amendment of the U.S. Constitution, also known as the takings clause, guarantees payment of just compensation upon appropriation of private property.” (Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 4th ed.)   Packet Pg. 85 13 ASSUMPTIONS AND LIMITING CONDITIONS This appraisal is subject to the following assumptions and limiting conditions: No responsibility is assumed for matters legal in character or nature. No opinion is rendered as to title, which is assumed to be good and marketable. All existing liens, encumbrances, and assessments have been disregarded, unless otherwise noted, and the property is appraised as though free and clear, having responsible ownership and competent management. We have examined the property described herein exclusively for the purposes of identification and description of the real property. The objective of our data collection is to develop an opinion of the highest and best use of the subject property and make meaningful comparisons in the valuation of the property. The appraiser's observations and reporting of the subject improvements are for the appraisal process and valuation purposes only and should not be considered as a warranty of any component of the property. This appraisal assumes (unless otherwise specifically stated) that the subject is structurally sound, and all components are in working condition. We will not be required to give testimony or appear in court because of having made an appraisal of the property in question, unless specific arrangements to do so have been made in advance, or as otherwise required by law. We have noted in this appraisal report any significant adverse conditions (such as needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) discovered during the data collection process in performing the appraisal. Unless otherwise stated in this appraisal report, we have no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of the property (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) that would make the property less valuable, and have assumed that there are no such conditions and make no guarantees or warranties, express or implied. We will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental hazards, this appraisal report must not be considered as an environmental assessment of the property. We obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from reliable public and/or private sources that we believe to be true and correct. We will not disclose the contents of this appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice, and/or applicable federal, state or local laws.   Packet Pg. 86 14 APPRAISER’S CERTIFICATIONS We do hereby certify that, except as otherwise noted in this report: We have made a personal inspection of the property that is the subject of this report. We have no past, present or prospective interest or bias in the property that is the subject of this report and no personal interest or bias with respect to the parties involved. To the best of our knowledge and belief, the statements of fact contained in this report, upon which the analysis, opinions, and conclusions expressed herein are based, are true and correct. The analysis, opinions, and conclusions contained in this report are limited only by the reported assumptions and limiting conditions imposed by the terms of our assignment or by the undersigned and are our personal, impartial, and unbiased professional analysis, opinions, and conclusions. The reported analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice and in conformity conforms to the requirements of the code of professional ethics and standards of professional appraisal practice of the Appraisal Institute. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. The Appraisal Institute has a voluntary program of continuing education requirements. Steven R. Smith is certified through 2020 with his education requirement. In accordance with the Competency Provision of the Uniform Standards of Professional Appraisal Practice (USPAP), We have verified that our knowledge and experience is sufficient to allow us to competently complete this appraisal unless stated otherwise within this report. The appraisers further certify and agree that: Our compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. We have not appraised this property in the last three years. Rubi Enriquez provided assistance in the preparation of this report. Any person who receives a copy of this appraisal report as a consequence of disclosure requirements that apply to an appraiser's client, does not become an intended user of this report unless the client specifically identified them at the time of the assignment. The appraiser's written consent and approval must be obtained before this appraisal report can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media.   Packet Pg. 87 15 APPRAISER QUALIFICATIONS STEVEN R. SMITH, MSREA, MAI, SRA, AG 2123 MS IN REAL ESTATE APPRAISAL, BA IN REAL ESTATE FINANCE FULL TIME APPRAISER SINCE 1976. PART TIME UNIVERSITY INSTRUCTOR IN REAL ESTATE AT CAL STATE UNIVERSITY 2005-2015. PRIOR WORK EXPERIENCE INCLUDED LOAN SERVICING, LOAN ORIGINATION, LOAN ADMINISTRATION, TITLE INSURANCE SALES, REAL ESTATE SALE, MORTGAGE LENDING, AND REAL ESTATE SALES MANAGEMENT. APPRAISAL EXPERIENCE INCLUDES PERFORMING APPRAISALS AND MARKET STUDIES ON EXISTING, PROPOSED AND DISTRESSED PROPERTIES, NON-PERFORMING OR DESTABILIZED PROJECT. COURT TESTIMONY EXPERIENCE INCLUDES A RANGE OF CIVIL AND CRIMINAL CASES, PROFESSIONAL LIABILITY CASES, MORTGAGE FRAUD AND REAL ESTATE FRAUD CASES, AS BOTH AN EXPERT WITNESS OR AS A REBUTTAL WITNESS. DEPOSITION TESTIMONY HAS ALSO INCLUDED IRS AND EMINENT DOMAIN CASES. NO COURT TESTIMONY HAS BEEN PROVIDED IN EITHER OF THESE TYPES OF CASES AS EVERYONE HAS SETTLED. SEMINARS CREATED AND DELIVERED INCLUDE: MORTGAGE FRAUD AND THE APPRAISERS ROLE- AI-2005, BUILDING TRANSFERABLE SKILL-SETS, AI – 2005, PREDATOR LENDING, CLIENT PRESSURES & APPRAISAL FRAUD, 2004, MORTGAGE FRAUD, CASES & CONSEQUENCES, 2002, REAL ESTATE FRAUD, APPRAISERS LIABILITIES & RESPONSIBILITIES, 2000, REAL ESTATE FRAUD & THE APPRAISERS ROLE, 2000, APPRAISAL REVIEW- SREA - 1989. APPRAISER LIABILITY SEMINAR- SREA - 1988. CAL LEAGUE OF SAVINGS INSTITUTIONS - APPRAISAL QUALITY CONTROL - 1988. RESIDENTIAL APPRAISAL SEMINAR - AIREA - 1987. BOSTON SAFE GUIDELINES - 1985-1988. MORTGAGE BANKERS OF AMERICA-APPRAISAL REVIEW - 1984-86. NARAMU-APPRAISAL REVIEW & FRAUD PREVENTION - 1984-1985. UNIFORM APPRAISAL GUIDELINES - 1984-88. 99 POINT APPRAISAL REVIEW WORKSHOP - 1984-1986. EXPERIENCE CREDIT WORKSHOP-USPAP COMPLIANCE, APPRAISAL INSTITUTE 1991. USPAP COMPLIANCE, APMW, 1991. ESTATE AND LUXURY HOME APPRAISAL REVIEW – APPRAISAL INSTITUTE - 1997. SPECIALTIES INCLUDE: LUXURY HOMES, AND FORENSIC APPRAISAL REVIEW CONTACT: 909-856-6841, WEB PAGE: HTTP://SRSREA.COM, EMAIL: steve@srsrea.com   Packet Pg. 88 Integra Realty Resources Los Angeles Appraisal of Real Property Former San Bernardino County Mountain Search & Rescue Station Special Purpose Property 3250 Harrison St. San Bernardino, San Bernardino County, California 92404 Prepared For: City of San Bernardino Date of the Report: August 24, 2022 Report Format: Appraisal Report IRR - Los Angeles File Number: 121-2022-0071   Packet Pg. 89 Subject Photographs Former San Bernardino County Mountain Search & Rescue Station 3250 Harrison St. San Bernardino, California   Packet Pg. 90 Aerial Photograph   Packet Pg. 91 Integra Realty Resources 16030 Ventura Boulevard T 818.290.5400 Los Angeles Suite 620 www.irr.com Encino, CA 91436-4473 August 24, 2022 Michael Yarbrough Real Property Manager City of San Bernardino 290 North D St San Bernardino, CA 92401 SUBJECT: Market Value Appraisal Former San Bernardino County Mountain Search & Rescue Station 3250 Harrison St. San Bernardino, San Bernardino County, California 92404 IRR - Los Angeles File No. 121-2022-0071 Dear Mr. Yarbrough: Integra Realty Resources – Los Angeles is pleased to submit the accompanying appraisal of the referenced property. The purpose of the appraisal is to develop an opinion of the market value of the subject property. The interest appraised is the fee simple interest in the property. The client for the assignment is the City of San Bernardino. The intended user of this report is the client. The intended use of the report is for property disposition purposes. No other party may use or rely on the information, opinions, and conclusions contained in this report. The subject property is an existing special purpose property (search and rescue station) containing 3,506 square feet of building area. The property includes an office/living area, locker rooms, bathrooms, a kitchen, and a garage. The improvements were constructed circa 1977 and are vacant as of the effective appraisal date. The gross site area is 3.67 acres. However, the useable land area is 1.10 acres or 47,916 square feet. The appraisal conforms to the Uniform Standards of Professional Appraisal Practice (USPAP), the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute, and applicable state appraisal regulations. Standards Rule 2-2 (Content of a Real Property Appraisal Report) contained in the Uniform Standards of Professional Appraisal Practice (USPAP) requires each written real property   Packet Pg. 92 Michael Yarbrough City of San Bernardino August 24, 2022 Page 2 appraisal report to be prepared as either an Appraisal Report or a Restricted Appraisal Report. This report is prepared as an Appraisal Report as defined by USPAP under Standards Rule 2-2(a), and incorporates practical explanation of the data, reasoning, and analysis that were used to develop the opinion of value. Based on the valuation analysis in the accompanying report, and subject to the definitions, assumptions, and limiting conditions expressed in the report, the concluded opinions of value are as follows: Value Conclusion Value Type & Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value Fee Simple August 10, 2022 $330,000 Extraordinary Assumptions and Hypothetical Conditions 1. Our client has provided us with a useable land area figure which excludes the land area impacted by the flood control easement. We assume this figure is accurate. If it is found to be inaccurate, our value conclusion may change. 1.None. The use of any extraordinary assumption or hypothetical condition may have affected the assignment results. The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. The value conclusion(s) in this report consider the impact of COVID-19 on the subject property.   Packet Pg. 93 Michael Yarbrough City of San Bernardino August 24, 2022 Page 3 If you have any questions or comments, please contact the undersigned. Thank you for the opportunity to be of service. Respectfully submitted, Integra Realty Resources - Los Angeles Jerardo Arciniega, MAI California Certified General Real Estate Appraiser #AG042445 Telephone: 818.290.5416 Email: jarciniega@irr.com Beth Finestone, MAI, AI-GRS, FRICS, CRE California Certified General Real Estate Appraiser #AG004030 Telephone: 818.290.5455 Email: bfinestone@irr.com   Packet Pg. 94 Table of Contents Former San Bernardino County Mountain Search & Rescue Station Executive Summary 1 Identification of the Appraisal Problem 2 Subject Description 2 Sale History 2 Pending Transactions 2 Appraisal Purpose 2 Value Type Definitions 2 Property Rights Definitions 3 Client and Intended User 3 Intended Use 3 Applicable Requirements 3 Report Format 3 Prior Services 4 Appraiser Competency 4 Scope of Work 5 Economic Analysis 7 San Bernardino County Area Analysis 7 Surrounding Area Analysis 15 Residential Market Analysis 19 Property Analysis 24 Land Description and Analysis 24 Improvements Description and Analysis 32 Real Estate Taxes 39 Highest and Best Use 40 Valuation 42 Valuation Methodology 42 Land Valuation 43 Analysis and Adjustment of Sales 47 Land Value Conclusion 51 Cost Approach 52   Packet Pg. 95 Table of Contents Former San Bernardino County Mountain Search & Rescue Station Replacement Cost 52 Depreciation 54 Value Indication 56 Reconciliation and Conclusion of Value 57 Final Opinion of Value 57 Exposure Time 58 Marketing Period 58 Certification 59 Assumptions and Limiting Conditions 61 Addenda A.Appraiser Qualifications B.Flood Control Easement C.Comparable Data Land Sales   Packet Pg. 96 Executive Summary 1 Former San Bernardino County Mountain Search & Rescue Station Executive Summary Property Name Address Property Type Owner of Record Tax ID Land Area (Gross)3.67 acres; 159,865 SF Land Area (Usable)1.10 acres; 47,916 SF Gross Building Area 3,506 SF Percent Leased 0% Year Built; Year Renovated 1977; 2003 Zoning Designation Zoning Designation - Assumed Highest and Best Use - As if Vacant Highest and Best Use - As Improved Exposure Time; Marketing Period 3 to 6 months; 3 to 6 months Effective Date of the Appraisal August 10, 2022 Date of the Report August 24, 2022 Property Interest Appraised Market Value Indications Cost Approach $330,000 Sales Comparison Approach Not Used Income Capitalization Approach Not Used Market Value Conclusion $330,000 The value reported above is subject to the definitions, assumptions, and limiting conditions set forth in the accompanying report of which this summary is a part. No party other than the City of San Bernardino may use or rely on the information, opinions, and conclusions contained in the report. It is assumed that the users of the report have read the entire report, including all of the definitions, assumptions, and limiting conditions contained therein. PFC, Public Flood Control Single-family residential Fee Simple Continued use as a search and rescue station RE, Residential Estate City of San Bernardino 0153-201-14 Former San Bernardino County Mountain Search & Rescue 3250 Harrison St. San Bernardino, San Bernardino County, California 92404 Special Purpose - Search and Rescue Station Extraordinary Assumptions and Hypothetical Conditions 1. Our client has provided us with a useable land area figure which excludes the land area impacted by the flood control easement. We assume this figure is accurate. If it is found to be inaccurate, our value conclusion may change. 1.None. The use of any extraordinary assumption or hypothetical condition may have affected the assignment results. The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.   Packet Pg. 97 Identification of the Appraisal Problem 2 Former San Bernardino County Mountain Search & Rescue Station Identification of the Appraisal Problem Subject Description The subject property is an existing special purpose property (search and rescue station) containing 3,506 square feet of building area. The property includes an office/living area, locker rooms, bathrooms, a kitchen, and a garage. The improvements were constructed circa 1977 and are vacant as of the effective appraisal date. The gross site area is 3.67 acres. However, the useable land area is 1.10 acres or 47,916 square feet. A legal description of the property was not provided. Property Identification Property Name Former San Bernardino County Mountain Search & Rescue Station Address 3250 Harrison St. San Bernardino, California 92404 Tax ID 0153-201-14 Owner of Record City of San Bernardino Sale History The subject property is currently owned by the City of San Bernardino. According to Joshua Dramitinos, Real Property Manager with the City of San Bernardino, the City acquired the property in 1931. To the best of our knowledge, no sales or transfers of ownership have taken place within a three-year period prior to the effective appraisal date. Pending Transactions Based on discussions with the appropriate contacts, the property is not subject to an agreement of sale or an option to buy, nor is it listed for sale, as of the effective appraisal date. However, we are aware that the City of San Bernardino intends to utilize our appraisal to negotiate a sale of the subject property, based on our appraised value. Appraisal Purpose The purpose of the appraisal is to develop an opinion of the market value of the subject property. The interest appraised is the fee simple interest in the property as of the effective date of the appraisal, August 10, 2022. The date of the report is August 24, 2022. The appraisal is valid only as of the stated effective date. Value Type Definitions The definitions of the value types applicable to this assignment are summarized below. Market Value The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and   Packet Pg. 98 Identification of the Appraisal Problem 3 Former San Bernardino County Mountain Search & Rescue Station assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1.Buyer and seller are typically motivated; 2.Both parties are well informed or well advised, and acting in what they consider their own best interests; 3.A reasonable time is allowed for exposure in the open market; 4.Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5.The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 1 Property Rights Definitions The property rights appraised which are applicable to this assignment are defined as follows. Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.2 Client and Intended User The client and intended user is City of San Bernardino. No other party may use or rely on the information, opinions, and conclusions contained in this report. Intended Use The intended use of the appraisal is for property disposition purposes. The appraisal is not intended for any other use. Applicable Requirements This appraisal report conforms to the following requirements and regulations: Uniform Standards of Professional Appraisal Practice (USPAP); and Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute. Report Format Standards Rule 2-2 (Content of a Real Property Appraisal Report) contained in the Uniform Standards of Professional Appraisal Practice (USPAP) requires each written real property appraisal report to be prepared as either an Appraisal Report or a Restricted Appraisal Report. This report is prepared as an 1 Code of Federal Regulations, Title 12, Chapter I, Part 34.42[h]; also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77472 2 Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015)   Packet Pg. 99 Identification of the Appraisal Problem 4 Former San Bernardino County Mountain Search & Rescue Station Appraisal Report as defined by USPAP under Standards Rule 2-2(a), and incorporates practical explanation of the data, reasoning, and analysis used to develop the opinion of value. Prior Services USPAP requires appraisers to disclose to the client any other services they have provided in connection with the subject property in the prior three years, including valuation, consulting, property management, brokerage, or any other services. We have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding the agreement to perform this assignment. Appraiser Competency No steps were necessary to meet the competency provisions established under USPAP. The assignment participants have appraised several properties similar to the subject in physical, locational, and economic characteristics, and are familiar with market conditions and trends; therefore, appraiser competency provisions are satisfied for this assignment. Appraiser qualifications and state credentials are included in the addenda of this report.   Packet Pg. 100 Scope of Work 5 Former San Bernardino County Mountain Search & Rescue Station Scope of Work Introduction The appraisal development and reporting processes require gathering and analyzing information about the assignment elements necessary to properly identify the appraisal problem. The scope of work decision includes the research and analyses necessary to develop credible assignment results, given the intended use of the appraisal. Sufficient information includes disclosure of research and analyses performed and might also include disclosure of research and analyses not performed. To determine the appropriate scope of work for the assignment, the intended use of the appraisal, the needs of the user, the complexity of the property, and other pertinent factors were considered. The concluded scope of work is described below. Research and Analysis The type and extent of the research and analysis conducted are detailed in individual sections of the report. The steps taken to verify comparable data are disclosed in the addenda of this report. Subject Property Data Sources The legal and physical features of the subject property, including size of the site and improvements, flood plain data, seismic zone designation, property zoning, existing easements and encumbrances, access and exposure, and condition of the improvements were confirmed and analyzed. Availability of Information Although the following items were requested from the property contacts and are pertinent to the assignment, they were not made available to Integra Realty Resources – Los Angeles. The inability to obtain this information and consider it in the analysis may affect the assignment results. A title report for the property. Inspection Details regarding the property inspection conducted as part of this appraisal assignment are summarized as follows: Property Inspection Party Inspection Type Inspection Date Jerardo Arciniega, MAI Interior and exterior June 2, 2022 Beth Finestone, MAI, AI-GRS, FRICS, CRE Interior and exterior June 2, 2022   Packet Pg. 101 Scope of Work 6 Former San Bernardino County Mountain Search & Rescue Station Valuation Methodology Three approaches to value are typically considered when developing a market value opinion for real property. These are the cost approach, the sales comparison approach, and the income capitalization approach. Use of the approaches in this assignment is summarized as follows: Approaches to Value Approach Applicability to Subject Use in Assignment Cost Approach Applicable Utilized Sales Comparison Approach Not Applicable Not Utilized Income Capitalization Approach Not Applicable Not Utilized The cost approach is the most reliable valuation method for the subject due to the following: There is sufficient data to develop reliable estimates of land value and replacement cost of the improvements. This approach is typically most relevant for properties for which sales and rental data is limited. The sales comparison approach is not applicable to the assignment because: While there are sales of fire stations, we were unable to find sales of search and rescue stations. Additionally, the subject property is highly depreciated and is situated on land within a flood zone, has a Public Flood Control zoning, and a majority of the land is impacted by a flood control easement. As a result, there is limited or no sales data of properties which have all these features. The income capitalization approach is not applicable to the assignment considering the following: There is not an active rental market for similar properties that would permit us to develop a reliable estimate of the property's income generating potential. This approach does not reflect the primary analysis undertaken by a typical purchaser. Similar properties are typically owner-occupied, decreasing the reliability of this approach. Significant Appraisal Assistance It is acknowledged that Alexa Amata made a significant professional contribution to this appraisal, consisting of conducting research on the subject and transactions involving comparable properties and assisting in report writing, under the supervision of the persons signing the report.   Packet Pg. 102 San Bernardino County Area Analysis 7 Former San Bernardino County Mountain Search & Rescue Station Economic Analysis San Bernardino County Area Analysis San Bernardino County is located in southern California. It is 20,057 square miles in size and has a population density of 110 persons per square mile. Population San Bernardino County has an estimated 2022 population of 2,208,877, which represents an average annual 0.7% increase over the 2010 census of 2,035,210. San Bernardino County added an average of 14,472 residents per year over the 2010-2022 period, and its annual growth rate exceeded the State of California rate of 0.5%. Looking forward, San Bernardino County's population is projected to increase at a 0.5% annual rate from 2022-2027, equivalent to the addition of an average of 10,810 residents per year. San Bernardino County's growth rate is expected to exceed that of California, which is projected to be 0.4%. Employment Total employment in San Bernardino County was estimated at 785,277 jobs as of June 2021. Between year-end 2011 and 2021, employment rose by 175,503 jobs, equivalent to a 28.8% increase over the entire period. There were gains in employment in nine out of the past ten years. Consistent with national trends, there were losses in 2020, with the onset of the COVID-19 pandemic, followed by a return to positive growth in 2021. San Bernardino County's rate of employment growth over the last decade surpassed that of California, which experienced an increase in employment of 15.3% or 2,256,471 jobs over this period. A comparison of unemployment rates is another way of gauging an area’s economic health. Over the past decade, the San Bernardino County unemployment rate has been generally higher than that of California, with an average unemployment rate of 7.7% in comparison to a 7.4% rate for California. A higher unemployment rate is a negative indicator. Population Compound Ann. % Chng 2010 Census 2022 Estimate 2027 Projection 2010 - 2022 2022 - 2027 USA 308,745,538 334,279,739 344,999,336 0.7%0.6% California 37,253,956 39,725,146 40,499,252 0.5%0.4% San Bernardino County 2,035,210 2,208,877 2,262,926 0.7%0.5% Riverside San Bernardino MSA 4,224,851 4,723,071 4,869,116 0.9%0.6% Source: Claritas Population Trends   Packet Pg. 103 San Bernardino County Area Analysis 8 Former San Bernardino County Mountain Search & Rescue Station Recent data shows that the San Bernardino County unemployment rate is 3.8% in comparison to a 3.9% rate for California, a positive sign that is consistent with the fact that San Bernardino County has outperformed California in the rate of job growth over the past two years. The unemployment showed a significant increase in the 2020 year due to the COVID-19 pandemic. The average unemployment rate for the 2021 year declined slightly, from 9.5% to 7.2%. The unemployment rate continued to decline in 2022 and was 3.8% as of April 2022. This is similar to the 3.9% rate during 2019 (pre-pandemic). Overall, the unemployment rate has completely recovered as of the current date. However, we note there are inflation and recession concerns as of the current date. Employment Sectors The composition of the San Bernardino County job market is depicted in the following chart, along with that of California. Total employment for both areas is broken down by major employment sector, and the sectors are ranked from largest to smallest based on the percentage of San Bernardino County jobs in each category. Employment Trends Total Employment (Year End)Unemployment Rate (Ann. Avg.) Year San Bernardino County % Change California % Change San Bernardino County California 2011 609,774 14,735,619 13.1%11.9% 2012 629,173 3.2%15,223,789 3.3% 11.6%10.5% 2013 653,764 3.9%15,657,015 2.8% 9.9%9.0% 2014 695,240 6.3%16,089,814 2.8% 8.1%7.6% 2015 724,618 4.2%16,606,038 3.2% 6.5%6.3% 2016 727,494 0.4%16,930,563 2.0% 5.8%5.5% 2017 754,169 3.7%17,263,084 2.0% 5.0%4.8% 2018 773,530 2.6%17,573,378 1.8% 4.1%4.3% 2019 802,486 3.7%17,857,719 1.6% 3.9%4.2% 2020 779,887 -2.8%16,401,290 -8.2% 9.5%10.2% 2021*785,277 0.7%16,992,090 3.6% 7.2%7.3% Overall Change 2011-2021 175,503 28.8%2,256,471 15.3% Avg Unemp. Rate 2011-2021 7.7%7.4% Unemployment Rate - April 2022 3.8%3.9% Source: U.S. Bureau of Labor Statistics and Moody's Analytics. Employment figures are from the Quarterly Census of Employment and Wages (QCEW). Unemployment rates are from the Current Population Survey (CPS). The figures are not seasonally adjusted. *Total employment data is as of June 2021; unemployment rate data reflects the average of 12 months of 2021.   Packet Pg. 104 San Bernardino County Area Analysis 9 Former San Bernardino County Mountain Search & Rescue Station San Bernardino County has greater concentrations than California in the following employment sectors: 1.Trade; Transportation; and Utilities, representing 31.1% of San Bernardino County payroll employment compared to 17.5% for California as a whole. This sector includes jobs in retail trade, wholesale trade, trucking, warehousing, and electric, gas, and water utilities. 2.Government, representing 15.3% of San Bernardino County payroll employment compared to 14.6% for California as a whole. This sector includes employment in local, state, and federal government agencies. San Bernardino County is underrepresented in the following sectors: 1.Education and Health Services, representing 15.4% of San Bernardino County payroll employment compared to 16.0% for California as a whole. This sector includes employment in public and private schools, colleges, hospitals, and social service agencies. Employment Sectors - 2021 31.1% 15.4% 15.3% 11.2% 9.2% 6.5% 4.9% 2.9% 2.5% 0.5% 0.4% 17.5% 16.0% 14.6% 15.7% 9.9% 7.5% 5.2% 4.8% 2.8% 3.2% 2.8% 0%5%10%15%20%25%30%35% Trade; Transportation; and Utilities Education and Health Services Government Professional and Business Services Leisure and Hospitality Manufacturing Construction Financial Activities Other Services Information Natural Resources & Mining San Bernardino County California Source: U.S. Bureau of Labor Statistics and Moody's Analytics   Packet Pg. 105 San Bernardino County Area Analysis 10 Former San Bernardino County Mountain Search & Rescue Station 2.Professional and Business Services, representing 11.2% of San Bernardino County payroll employment compared to 15.7% for California as a whole. This sector includes legal, accounting, and engineering firms, as well as management of holding companies. 3.Leisure and Hospitality, representing 9.2% of San Bernardino County payroll employment compared to 9.9% for California as a whole. This sector includes employment in hotels, restaurants, recreation facilities, and arts and cultural institutions. 4.Manufacturing, representing 6.5% of San Bernardino County payroll employment compared to 7.5% for California as a whole. This sector includes all establishments engaged in the manufacturing of durable and nondurable goods. Major Employers Major employers in San Bernardino County are shown in the following table. Gross Domestic Product Gross Domestic Product (GDP) is a measure of economic activity based on the total value of goods and services produced in a defined geographic area, and annual changes in Gross Domestic Product (GDP) are a gauge of economic growth. Economic growth, as measured by annual changes in GDP, has been considerably lower in San Bernardino County than California overall during the past ten years. San Bernardino County has grown at a 2.2% average annual rate while California has grown at a 2.9% rate. San Bernardino County experienced a decline in GDP in the recent downturn but fared better than California. The area's GDP dropped by 1.9% in 2020 while California's GDP dropped by 2.8%. GDP figures for 2021 are not yet available at the local level, but GDP on a national level increased 5.7% in 2021, in contrast to the pandemic-related decrease of 3.4% in 2020. Name Number of Employees 1 Arrowhead Regional Medical Center 18,000 2 Stater Bros. Markets 18,000 3 County of San Bernardino 17,400 4 San Bernardino City Unified School District 8,570 5 Ontario International Airport 7,510 6 Kaiser Medical Center 5,680 7 Loma Linda University Medical Center 4,680 8 Fontana Unified School District 3,950 9 Loma Linda University 3,910 10 San Manuel Band of Mission Indians 3,260 Major Employers - San Bernardino County Source: Southern California Association of Governments Comprehensive Annual Financial Report, June 2021   Packet Pg. 106 San Bernardino County Area Analysis 11 Former San Bernardino County Mountain Search & Rescue Station San Bernardino County has a per capita GDP of $37,549, which is 44% less than California's GDP of $67,435. This means that San Bernardino County industries and employers are adding relatively less value to the economy than their counterparts in overall state of California. Household Income San Bernardino County has a considerably lower level of household income than California. Median household income for San Bernardino County is $74,883, which is 15.8% less than the corresponding figure for California. The following chart shows the distribution of households across twelve income levels. San Bernardino County has a greater concentration of households in the middle income levels than California. Specifically, 28% of San Bernardino County households are between the $35,000 - $75,000 levels in household income as compared to 23% of California households. A lesser concentration of households is apparent in the higher income levels, as 50% of San Bernardino County households are at the $75,000 or greater levels in household income versus 57% of California households. Gross Domestic Product Year ($,000s) San Bernardino County % Change ($,000s) California % Change 2011 67,336,498 2,063,827,500 2012 67,620,205 0.4%2,113,096,400 2.4% 2013 69,149,978 2.3%2,179,229,000 3.1% 2014 71,474,503 3.4%2,256,054,700 3.5% 2015 74,181,095 3.8%2,357,452,900 4.5% 2016 75,877,075 2.3%2,427,894,600 3.0% 2017 78,146,465 3.0%2,541,769,300 4.7% 2018 80,460,743 3.0%2,643,576,300 4.0% 2019 83,759,253 4.1%2,739,343,400 3.6% 2020 82,202,264 -1.9%2,663,665,900 -2.8% Compound % Chg (2011-2020)2.2%2.9% GDP Per Capita 2020 $37,549 $67,435 Source: U.S. Bureau of Economic Analysis and Moody's Analytics; data released December 2021. The release of state and local GDP data has a longer lag time than national data. The data represents inflation-adjusted ""real"" GDP stated in 2012 dollars. Median San Bernardino County $74,883 California $88,967 Comparison of San Bernardino County to California - 15.8% Source: Claritas Median Household Income - 2022   Packet Pg. 107 San Bernardino County Area Analysis 12 Former San Bernardino County Mountain Search & Rescue Station Education and Age Residents of San Bernardino County have a lower level of educational attainment than those of California. An estimated 22% of San Bernardino County residents are college graduates with four-year degrees, versus 35% of California residents. People in San Bernardino County are younger than their California counterparts. The median age for San Bernardino County is 34 years, while the median age for California is 38 years. Household Income Distribution - 2022 7.3% 6.2% 6.2% 9.4% 14.0% 11.9% 10.0% 8.0% 9.8% 5.7% 6.5% 5.0% 7.7% 6.7% 7.7% 11.6% 16.3% 13.7% 10.9% 7.9% 8.4% 4.2% 3.5% 1.4% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Less than $15,000 $15,000 - $24,999 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $124,999 $125,000 - $149,999 $150,000 - $199,999 $200,000 - $249,999 $250,000 - 499,999 $500,000 and more San Bernardino County California Source: Claritas   Packet Pg. 108 San Bernardino County Area Analysis 13 Former San Bernardino County Mountain Search & Rescue Station Conclusion The San Bernardino County economy will be affected by a growing population base and lower income and education levels. San Bernardino County experienced growth in the number of jobs over the past decade, and it is reasonable to assume that employment growth will occur in the future. While there is still some uncertainly in the markets as a result of the Covid-19 pandemic, overall, the long-term prospects for the region are positive. Having said that, inflation is of great concern nationally, and the Federal Reserve Board is increasing interest rates to help reduce inflation. The impacts of these changes are anticipated to slow the economy. The longer-term outlook is uncertain at this point.   Packet Pg. 109 San Bernardino County Area Analysis 14 Former San Bernardino County Mountain Search & Rescue Station Area Map   Packet Pg. 110 Surrounding Area Analysis 15 Former San Bernardino County Mountain Search & Rescue Station Surrounding Area Analysis Location The subject is located in the northern area of the city of San Bernardino within San Bernardino County. Adjacent communities include Highland and Redlands to the east, Loma Linda to the south, and Rialto and Colton to the west. A map identifying the location of the property follows this section. Access and Linkages Primary highway access to the area is via the Foothill Freeway/Congressman George E. Brown, Jr. Memorial Highway (SR-210). SR-210 is located approximately 0.4 miles south of the subject. There are on and off-ramps along Waterman Avenue, approximately one mile southwest of the subject. The property is also approximately three miles east of the San Bernardino Freeway (Interstate 215 or I- 215). The major arterial streets providing access in a north and south direction are Mountain View Avenue and Waterman Avenue. The major arterial streets providing east and west access include E. 40th Street, W. 34th Street, Marshall Boulevard and E. Highland Avenue. Overall, vehicular access is considered to be average. Public transportation is provided by Omnitrans, which provides access to neighboring cities. The Omnitrans rapid bus system is called sbX. The Ontario International Airport is approximately twenty miles southwest of the subject. Overall, the primary mode of transportation in the area is the automobile. Demographics A demographic profile of the surrounding area, including population, households, and income data, is presented in the following table.   Packet Pg. 111 Surrounding Area Analysis 16 Former San Bernardino County Mountain Search & Rescue Station As shown above, the current population within a 3-mile radius of the subject is 151,603, and the average household size is 3.8. Population in the area has grown since the 2010 census, and this trend is projected to continue over the next five years. Compared to San Bernardino County overall, the population within a 3-mile radius is projected to grow at a slightly slower rate. Median household income is $47,130, which is considerably lower than the household income for San Bernardino County. Residents within a 3-mile radius have a substantially lower level of educational attainment than those of San Bernardino County, and median owner-occupied home values are considerably lower. Land Use Predominant land uses in the immediate vicinity of the subject primarily consist of single-family residences. However, the subject is also adjacent to the Twin Creeks Spreading Grounds. A majority of the areas to the north, west and east are either owned or controlled by the San Bernardino County Flood Control District. Other land use characteristics are summarized as follows: Surrounding Area Demographics 2022 Estimates 1-Mile Radius 3-Mile Radius 5-Mile Radius San Bernardino County California Population 2010 16,280 144,151 357,147 2,035,210 37,253,956 Population 2022 17,026 151,603 374,546 2,208,877 39,725,146 Population 2027 17,294 154,225 380,546 2,262,926 40,499,252 Compound % Change 2010-2022 0.4%0.4%0.4%0.7%0.5% Compound % Change 2022-2027 0.3%0.3%0.3%0.5%0.4% Households 2010 4,471 37,592 100,149 611,618 12,577,498 Households 2022 4,692 39,168 104,127 655,091 13,379,828 Households 2027 4,771 39,758 105,587 669,082 13,634,200 Compound % Change 2010-2022 0.4%0.3%0.3%0.6%0.5% Compound % Change 2022-2027 0.3%0.3%0.3%0.4%0.4% Median Household Income 2022 $32,847 $47,130 $54,654 $74,883 $88,967 Average Household Size 3.5 3.8 3.5 3.3 2.9 College Graduate %7%8%13%22%35% Median Age 29 30 31 34 38 Owner Occupied %25%46%48%63%56% Renter Occupied %75%54%52%37%44% Median Owner Occupied Housing Value $230,795 $280,743 $334,103 $440,750 $658,725 Median Year Structure Built 1965 1962 1969 1983 1976 Average Travel Time to Work in Minutes 28 30 30 34 33 Source: Claritas   Packet Pg. 112 Surrounding Area Analysis 17 Former San Bernardino County Mountain Search & Rescue Station Immediate Surroundings North Vacant land (San Bernardino County Flood Control District) South Single-family residences and vacant land owned or controlled by San Bernardino County Flood Control District East Single-family residences West Vacant land (San Bernardino County Flood Control District) and single-family residences further west Outlook and Conclusions The area is in the stability stage of its life cycle. Recent development activity in the immediate area is limited to scattered infill locations and has been centered on residential uses. It should be noted that there is still a level of uncertainty in the markets as result of the Covid-19 pandemic, inflation and rising interest rates.   Packet Pg. 113 Surrounding Area Analysis 18 Former San Bernardino County Mountain Search & Rescue Station Surrounding Area Map   Packet Pg. 114 Residential Market Analysis 19 Former San Bernardino County Mountain Search & Rescue Station Residential Market Analysis The subject property is zoned PFC, Public Flood Control zone. This zone allows single-family dwelling units which legally existed prior to adoption of the PFC Zone. Development is allowed within the PFC zone, but any use other than for flood control purposes is subject to review. In addition, any development must be compatible with surrounding development and land use designations. Based on our conversations with City Planning staff, a low intensity use would be allowed. The subject property is located in a single-family residential neighborhood. Based on our planning interviews, review of the zoning code, and analysis of the surrounding neighborhood, it is our opinion that a low intensity use would be possible on the subject property. The lowest intensity use in the surrounding area is single-family residential. Therefore, for the purposes of our analysis, we have included a residential market analysis. The following information is for improved single-family residential properties. This is included as the market for single-family land generally follows similar trends to the improved single-family market. However, we note that other factors, such as construction costs also impact land values. Single-Family Sale Trends The health of the housing industry and demand are generally tied to the health of the economy. While the COVID-19 pandemic caused a great deal of uncertainty in the economy, housing has not been adversely impacted the way other sectors of the economy were impacted. The fact that work-from- home has become an accepted reality has somewhat lessened the impact of location as being the most important factor in home purchases. Pricing of single-family residences continued to increase throughout the pandemic. Inventory has been low over the past few years. Interest rates were historically low at the end of the 2021 year. However, the Federal Reserve increased interest rates in both June and July of this year in an effort to combat inflation. This has led to a slight decrease in demand over the last two months. Redfin reports that prices for single-family residences in San Bernardino were up 19.4% in June 2022 compared to June 2021. They report the median sale price in June 2022 was $477,500. However, they report the marketing time as slightly longer in June 2022, with an average marketing time of 22 days compared to 18 days the prior year. Redfin reports 162 homes were sold in June 2022, a slight decrease from the 170 homes which were sold in June 2021. The following chart was provided by Redfin and shows the median sale price in San Bernardino over the last three years.   Packet Pg. 115 Residential Market Analysis 20 Former San Bernardino County Mountain Search & Rescue Station As shown, the median sale price in San Bernardino was approximately $350,000 at the start of 2020 and was $477,500 as of June 2022. Overall, price levels have grown significantly over the last few years. However, brokers report they no longer expect this rate of increase to continue due to the significant increases in interest rates over the last few months. The following chart shows information on sale-to-list price ratios in San Bernardino. As shown above, in late 2020 the sale-to-list price ratio climbed above 100%. This means that the average home was selling above list price. The sale-to-list price ratio has remained above 100% since late 2020. However, as shown on the chart, the ratio has started to fall in the last few months. Redfin reports 21.3% of homes had price drops in the last year. They report this is a 12.7 point increase year-   Packet Pg. 116 Residential Market Analysis 21 Former San Bernardino County Mountain Search & Rescue Station over-year. However, on a percentage basis, the number of homes with price drops have more than doubled in the last year. Interest Rates Interest rates for 30-year fixed-rate mortgages were at historic lows of approximately 3% at the end of the 2021 year. However, interest rates have risen significantly in the last few months. The following chart was provided by Freddie Mac (Federal Home Loan Mortgage Corporation). As shown above, interest rates were declining between 2020 and the end of 2021. However, interest rates have risen significantly in the last few months and a 30-year fixed rate mortgage is currently above 5% compared to 3% at the beginning of the year. This interest rate increase significantly reduces buying power and puts downward pressure on housing prices. The brokers we interviewed when confirming sales indicated the rise in interest rates has already begun to impact pricing and that they anticipate price levels to begin to stabilize or even decline. Monthly Single-Family Sale Trends Due to the recent increases in interest rates, we conducted the following analysis of price levels over the last few months. The following information was compiled by utilizing the Multiple Listing Service (MLS). The following table shows trends in single-family home prices in the city of San Bernardino over the past seven months.   Packet Pg. 117 Residential Market Analysis 22 Former San Bernardino County Mountain Search & Rescue Station Single-Family Residential Sale Trends January 2022 February 2022 March 2022 April 2022 May 2022 June 2022 July 2022 Number of Sales 156 151 190 163 169 172 137 Median Sale Price $435,000 $444,000 $458,500 $480,000 $470,000 $476,000 $475,000 % Change From Prior Month 2.07%3.27%4.69%-2.08%1.28%-0.21% Median Price / SF $326 $331 $337 $336 $339 $345 $328 % Change From Prior Month 1.53%1.81%-0.30%0.89%1.77%-4.93% Source: Multiple Listing Service As shown on the preceding table, the median price for single-family homes increased over the first four months of 2022. However, the median price was relatively flat between April and July and only ranged from $470,000 to $480,000. This is consistent with our broker interviews and the Redfin reported average sale price of $477,500 for June 2022. In addition, the number of homes sales in July was lower than any of the prior six months. Although this decline in the number of home sales has only occurred in the latest month, it may be indicative of a decline in housing demand due to interest rate increases. Construction Costs The preceding data relates to the improved single-family market. To gain an understanding of the residential land market we researched construction costs trends. Construction costs impact land value if their growth rate is substantially different than growth rates for improved properties. The following table shows the California Construction Cost Index (CCCI) as reported by the State of California Department of General Services (DGS). The data includes costs for properties within the cites of San Francisco and Los Angeles only. However, the general trend shown is generally reflective of construction costs within the subject market area. California Construction Cost Index (CCCI) 2018 2019 2020 2021 Jun-22 June CCCI 6,598 6,854 7,041 7,746 8,925 % Change from Prior Year 3.88%2.73%10.01%15.22% Source: California Department of General Services As shown on the preceding data, construction costs have increased significantly in the last two years. DGS reports increases of approximately ten to fifteen percent over the past two years. The Redfin data indicated a nearly twenty percent increase in the sale prices of improved single-family homes within San Bernardino. The increases in price levels for single-family homes have slightly outpaced the increase in single-family home prices over the last year. This puts slight upward pressure on land prices. Conclusion The subject property’s assumed zoning is a residential estate zone with a highest and best use of residential development. The preceding analysis shows the single-family residential market was strong   Packet Pg. 118 Residential Market Analysis 23 Former San Bernardino County Mountain Search & Rescue Station with significant price increases through 2021. June 2022 year-over-year data also shows significant price increased compared to June 2021. However, there have been significant interest rate increases in the last two months. As a result, we also analyzed monthly home sales over the first seven months of the year. This data shows single-family home prices in the city of San Bernardino have begun to stabilize. In addition, the number of homes sold in July 2022 was lower than the prior six months. Finally, constructions costs have increased, although at a slightly lower rate than improved single- family home values. Overall, after years of significant price level increases, the increase in interest rates may be causing prices and demand to stabilize. Based on the data presented and our conversations with market participants, the market for residential land is anticipated remain stable in the near future. However, we note that if interest rates and construction costs continue to rise, this may negatively impact the residential land market in the subject area.   Packet Pg. 119 Land Description and Analysis 24 Former San Bernardino County Mountain Search & Rescue Station Property Analysis Land Description and Analysis Land Description Land Area (Gross)3.67 acres; 159,865 SF Land Area (Usable)1.10 acres; 47,916 SF Source of Land Area Public Records Primary Street Frontage Harrison - 475± feet Shape Irregular Corner No Environmental Hazards None reported or observed Ground Stability No problems reported or observed Flood Area Panel Number 060281 Date July 14, 2022 Zone A Description Within 100-year floodplain Insurance Required?Yes Zoning; Other Regulations Zoning Jurisdiction City of San Bernardino Zoning Designation PFC, Public Flood Control Zoning Designation (Assumed)RE Description Residential Estate Legally Conforming?Appears to be legally nonconforming Zoning Change Likely?No Permitted Uses Single-family residences, accessory dwelling units, day care homes, and community care facilities Minimum Lot Area 1 acre Maximum Density None Maximum Floor Area Ratio None Utilities Service Provider Water City of San Bernardino Sewer City of San Bernardino Electricity Southern California Edison Natural Gas Southern California Gas Company Local Phone Multiple providers   Packet Pg. 120 Land Description and Analysis 25 Former San Bernardino County Mountain Search & Rescue Station Easements, Encroachments and Restrictions A current title report was not provided for review. However, we are aware that there is an easement which impacts a significant portion of the subject property. David Drake, Division Chief of the San Bernardino County Flood Control District (SBCFCD), indicated SBCFCD has an easement over a majority of the subject property. He indicated the flood control area is called the Twin Creek Spreading Grounds. The easement was granted in 1941 to SBCFCD. Mr. Drake provided the following map which shows the easement area shaded in blue. The preceding map shows the subject property outlined in yellow. The SBCFCD has an easement over the area shaded in blue. We also note that areas shaded in red are owned in fee by the SBCFCD. As shown above, the easement impacts a significant portion of the site. The above map also shows that all the subject improvements are located outside of the easement area. Our client provided us with a copy of the easement. The easement is a perpetual easement granted for flood control and water conservation purposes. The easement language indicates the easement is on, over and across the property and grants the rights to construct, inspect, maintain and repair channels and structures for the purposes of confining and conserving the waters of the East Twin   Packet Pg. 121 Land Description and Analysis 26 Former San Bernardino County Mountain Search & Rescue Station Creek. The easement also grants the right to enter and pass over the land, deposit tools, to take from the earth rock, sand and gravel for the purpose of excavating, widening, deepening, and rectifying a channel, and for the construction, maintenance and repair of embankments, and any other structures for the purposes of flood control and water conservation purposes. Finally, the easement indicates the SBCFCD has all the rights necessary to confine waters within the easement areas. Based on our review of the easement language and our conversations with Mr. Drake, the subject property owner or any prospective buyer would have no rights over the land area impacted by the easement. Mr. Drake indicated the SBCFCD has complete jurisdiction over the easement area and they would not allow any private use of the area. As a result, the easement impacts the useable land area of the subject property. A potential buyer of the subject property would be required to purchase the entire land area. However, in our opinion, a buyer would not assign any value to the land area impacted by the easement because the SBCFCD has essentially all the rights over the area. We have therefore deducted the land area subject to the easement from the gross land area to arrive at a useable land area. Our client has provided us with an estimated useable land figure of 1.10 acres. We have relied on their provided figure. We also note that we got a similar figure utilizing Google Earth. We have assumed their provided figure is accurate. If it is found to be inaccurate, our value conclusions may change. As indicated earlier, we were not provided with a title report for the subject property. Besides the easement already discussed, we are not aware of any other easements, encroachments, or restrictions that would adversely affect value. This valuation assumes there are no other adverse impacts from easements, encroachments, or restrictions, and further assumes that the subject has clear and marketable title. Land Area The following table summarizes the subject’s land area. Land Area Summary Tax ID SF Usable SF Unusable SF Acres Usable Acres Unusable Acres 0153-201-14 159,865 47,916 111,949 3.67 1.10 2.57 Source: Public Records The subject property consists of 3.67 gross acres. However, a majority of the subject property is subject to a flood control easement. The City of San Bernardino provided us with an estimate of 1.10 acres for the area outside of the easement area. We have utilized their provided figure as the useable land area. This figure represents 30% of the land area with 70% of the land area impacted by the flood control easement. We assume that these figures are accurate. If they are found to be inaccurate, our value conclusions may change.   Packet Pg. 122 Land Description and Analysis 27 Former San Bernardino County Mountain Search & Rescue Station Flood Hazard Status The following table indicates applicable flood hazard information for the subject property, as determined by review of available flood maps obtained from the Federal Emergency Management Agency (FEMA). `Flood Hazard Status Community Panel Number 060281 Date July 14, 2022 Zone A Description Within 100-year floodplain Insurance Required?Yes The map above shows the subject property outlined in red. The blue shaded area is Zone A, which represents areas within a 100-year floodplain. The gray and orange striped area is Zone X – Areas with reduced flood risk due to levees. The black stripe marks to the north and south of the subject represent the levees. We note there is a drainage ditch to the south of the subject. The Zone A places additional regulations on development. David Drake with SBCFCD indicated that building in flood zones is more restrictive today than when the subject improvements were constructed. He indicated a new development would likely be required to be elevated over the surface. The easterly portion of the site is zoned Zone X. Development potential would not be impacted over this area.   Packet Pg. 123 Land Description and Analysis 28 Former San Bernardino County Mountain Search & Rescue Station Topography The site is of the useable land area is generally level and at street grade. The topography does not result in any particular development limitations. Drainage No particular drainage problems were observed or disclosed at the time of field inspection on the useable land area. This appraisal assumes that surface water collection, both on-site and in public streets adjacent to the subject, is adequate. Zoning The subject property is zoned Public Flood Control (PFC) Zone by the City of San Bernardino. The purpose of this zoning district is for the continuation, maintenance, and expansion of public flood control facilities. The subject property is within a flood control area. The properties to the north, west and south are owned or controlled by the San Bernardino Flood Control District. David Drake, Division Chief, with the SBCFCD indicated they own the land area in the subject area in fee or have easements on the properties. He stated they have an easement over a portion of the subject property. We spoke with Travis Martin, Associate Planner, with the City of San Bernardino. He indicated development is allowed within the PFC zone, but any use other than for flood control purposes is subject to review. In addition, any development must be compatible with surrounding development and land use designations. The surrounding land use designations are single-family residential designations, which are low intensity uses. Based on our conversations with City Planning staff, a low intensity use on the subject property would be allowed. The subject property is located in a single-family residential neighborhood. Based on our planning interviews, review of the zoning code, and analysis of the surrounding neighborhood, it is our opinion that a low intensity use would be possible on the subject property. The lowest intensity use in the surrounding area is single-family residential. The surrounding land area, which is not within the PFC Zone, is zoned Residential Estate and Residential Suburban. The area to the west of the flood control area is zoned Residential Estate. This zoning designation has larger lot size requirements and is therefore less dense than the RS zoning to the east. Based on our interviews, the subject property has low density development potential. There are little to no sales of publicly zoned land. In order to determine the market value of the subject site, we have considered the development potential of the subject and utilized transactions with involved the sale of properties with similar low density development potential. As a result, we have assumed the subject zoning would be similar to its surrounding, non-publicly owned sites. Accordingly, we appraise the subject land that is outside of the easement area as if it were allowed to be developed with a residential use, the lowest intensity use in the surrounding neighborhood. The following table summarizes the zoning requirements for the Residential Estate zone designation.   Packet Pg. 124 Land Description and Analysis 29 Former San Bernardino County Mountain Search & Rescue Station Zoning Summary Zoning Jurisdiction City of San Bernardino Zoning Designation (Assumed)RE Description (Assumed)Residential Estate Legally Conforming?Appears to be legally nonconforming Zoning Change Likely?No Permitted Uses Single-family residences, accessory dwelling units, day care homes, and community care facilities Category Zoning Requirement Minimum Lot Area 1 acre Minimum Lot Width (Feet)150 Minimum Lot Depth (Feet)100 Minimum Setbacks (Feet)Front yard: 35 feet Side yards: 5 feet Rear yard: 20 feet Maximum Building Height 3 stories of 45 feet Maximum Site Coverage 35% Maximum Density None Maximum Floor Area Ratio None Parking Requirement 2 covered spaces within an enclosed garage for single-family dwellings Source: City of San Bernardino Zoning Ordinance We are not experts in the interpretation of zoning ordinances. An appropriately qualified land use attorney should be engaged if a determination of compliance with zoning is required. Potential Development Density Approximately 70% of the site is impacted by a flood control easement. As a result, this portion of the subject property is unusable and has no development potential. The remaining land area is not impacted by the easement. However, a majority of the remaining land area is within Flood Zone A. According to David Drake, this area can be developed but the development would need to be slightly elevated due to the flood zone. Our assumed zoning is Residential Estate which allows a single-family residence at a maximum density of one unit per acre. The useable subject area is approximately 1.10 acres. As a result, the maximum development potential under the assumed zoning is one single-family residence. Conclusion of Site Analysis As was previously discussed, approximately 70% of the site is impacted by a flood control easement. This area has no development potential. The remaining 30% of the land area is not impacted by the easement. This is the subject’s useable land area. The usable portion of the site’s physical   Packet Pg. 125 Land Description and Analysis 30 Former San Bernardino County Mountain Search & Rescue Station characteristics and the availability of utilities result in a functional site, suitable for a variety of uses including those permitted by zoning. Plat Map   Packet Pg. 126 Land Description and Analysis 31 Former San Bernardino County Mountain Search & Rescue Station Flood Hazard Map   Packet Pg. 127 Improvements Description and Analysis 32 Former San Bernardino County Mountain Search & Rescue Station Improvements Description and Analysis Overview The subject property is an existing special purpose property (search and rescue station) containing 3,506 square feet of building area. The property includes an office/living area, locker rooms, bathrooms, a kitchen, and a garage. The improvements were constructed circa 1977 and are vacant as of the effective appraisal date. The gross site area is 3.67 acres. However, the useable land area is 1.10 acres or 47,916 square feet. The following description is based on the inspection of the property. Improvements Description `Name of Property Former San Bernardino County Mountain Search & Rescue Station General Property Type Special Purpose Property Sub Type Search and Rescue Station Competitive Property Class C Occupancy Type Single Tenant Percent Leased 0% Number of Buildings 1 Stories 1 Construction Class D Construction Type Wood frame Construction Quality Average Condition Poor to fair Gross Building Area (SF)3,506 Useable Land Area (SF)47,916 Floor Area Ratio (GBA/Land SF)0.07 Building Area Source Inspection Year Built 1977 Year Renovated 2003 Actual Age (Yrs.)45 Estimated Effective Age (Yrs.)30 Estimated Economic Life (Yrs.)35 Remaining Economic Life (Yrs.)5 Number of Parking Spaces 25 Source of Parking Count Estimate based on parking lot area Parking Type Surface parking lot Parking Spaces/1,000 SF GBA 7.13 We found no public records regarding the year the fire station was constructed. Joshua Dramitinos, Real Property Manager with the City of San Bernardino, indicated they do not have any records and the construction date is unknown. However, he indicated in 1977 a lease was executed with the San Bernardino County Mountain Search and Rescue (SBCMSR). As a result, we have assumed the building was constructed circa 1977. Mr. Dramitinos also indicated the SBCMSR made improvements to the property including a new roof and driveway in 2003.   Packet Pg. 128 Improvements Description and Analysis 33 Former San Bernardino County Mountain Search & Rescue Station Construction Details Foundation Concrete Structural Frame Wood frame Exterior Walls Stucco Roof Shingle Drive-in Doors 4 Floors Carpet tiles in the living area/office space, vinyl sheet floors in the locker room, bathrooms, and kitchen, and concrete floors in the garage area. Walls Primarily painted drywall Ceilings Spray on acoustic plaster in the office/living area and locker room; painted drywall in the bathrooms, kitchen and garage. Lighting Incandescent light fixtures in the office/living area, bathrooms and kitchen; fluorescent lights in the locker room and garage. HVAC Roof Central Mounted Plumbing Appears to be adequate Restrooms There is a bathroom/shower area which includes a ceramic tiled shower, two wall hung porcelain sinks and two separate toilet rooms. The bathroom area lacks any recent renovation and is in fair condition. Sprinklers None Kitchen Equipment There is a kitchen with base and wall mounted cabinets in fair condition. The base cabinets have a ceramic tile countertop and backsplash. The kitchen also includes a dual basin porcelain sink. There is a stand-alone four-burner gas range/oven within the kitchen and a water heater. There is no space for a dishwasher and no refrigerator was present at the time of our inspection. The kitchen lacks any significant renovation and is in fair condition. Garages The garage area has two corrugated metal roll up doors at the front of the property and an additonal two doors at the rear. The garage area also has concreted floors and painted drywall walls and ceilings with fluorescent lighting. The garage area is 64 feet in depth and can house multiple fire trucks. Ceiling Height Approximately 14 feet in the garage and 9 feet in the other areas. Landscaping None No. of Parking Spaces There is a parking lot to the south of the building. The parking lot was not stripped. We have estimated a total of approximately 25 parking spaces based on the land area of the parking lot. Gates/Fencing The rear yard area has chainlink fencing. There is also a chainlink fence and gate which provide access to the paved parking lot area. Paving Asphalt and concrete paving Occupancy Status The property is currently vacant. The subject property was previously occupied by San Bernardino Mountain Search and Rescue and utilized as one of their stations. According to our client, the property was initially leased to SBCMSR in 1977. Mr. Dramitinos did not have the date the property was vacated. Based on street views and aerials, SBCMSR vacated the property between 2018 and 2019.   Packet Pg. 129 Improvements Description and Analysis 34 Former San Bernardino County Mountain Search & Rescue Station Improvements Analysis Quality and Condition The improvements are of average quality construction and are in poor to fair condition. The subject property has been vacant for over three years and has not had any recent renovation to the living areas. The kitchen, bathrooms, and locker rooms were in poor to fair condition. The living room/office area was in fair to average condition. However, the garage was in average condition. The exterior of the building was in fair condition. However, the site improvements were in poor condition. The parking lot and paved rear area were in poor condition. Overall, the property was in poor to fair condition. The garage was the portion of the property that was in the best condition. Functional Utility The improvements appear to be adequately suited to a search and rescue operation. Based on the property inspection and consideration of the foregoing, there do not appear to be any significant items of functional obsolescence for a search and rescue use. In addition, the condition of the property is poor to fair overall. Significant improvements would be required to make the space operational. Deferred Maintenance Deferred maintenance is identified based on the property inspection. The rear door which provided access to the kitchen was broken by a trespasser and needs to be replaced. City Public Works staff noted the door was damaged by a trespasser and were planning to board up the doorway. In addition, some of the locker doors no longer close properly. We did not test the heating or air conditioning. Our analysis assumes these items are functioning. The subject property lacks any recent renovation and is in poor to fair condition. However, there were no signs of items which needed immediate repair other than the doors already discussed. Our depreciation analysis considers the condition of items such as the locker doors within the subject property. We note that the parking lot was in very poor condition. In our analysis, we have considered the parking lot improvements as fully depreciated. Planned Capital Expenditures To the best of our knowledge, there are no planned capital expenditures. ADA Compliance Based on the property inspection and information provided, there are no apparent ADA issues. However, ADA matters are beyond the scope of expertise of the assignment participants, and further study by an appropriately qualified professional would be recommended to assess ADA compliance. Hazardous Substances An environmental assessment report was not provided for review, and environmental issues are beyond the scope of expertise of the assignment participants. No hazardous substances were observed during the inspection of the improvements; however, detection of such substances is outside the scope of expertise of the assignment participants. Qualified professionals should be consulted. Unless otherwise stated, it is assumed no hazardous conditions exist on or near the subject.   Packet Pg. 130 Improvements Description and Analysis 35 Former San Bernardino County Mountain Search & Rescue Station Personal Property The appraisal assignment is specifically focused on the value of the real property only. Items of personal property are excluded from consideration. Site Improvements The subject has site improvements consisting of an asphalt paved parking lot, concrete paved driveway and rear yard area, and chain-link fencing. The improved area is not completely fenced. The western parking lot boundary is not fenced and can be assessed through the vacant land area to the south and west. The parking lot is in poor condition. The concrete driveway is in average condition and the rear concrete paved yard is in poor condition. We have estimated the areas of the site improvements utilizing Google Earth. Conclusion of Improvements Analysis In comparison to competitive properties in the market, the subject improvements are rated as follows: Improvements Ratings Access Average Visibility/Exposure Average Design and Appearance Below Average Age/Condition Below Average Bathrooms Below Average Kitchens Below Average Landscaping Below Average Garages Average Overall, the quality, condition, and functional utility of the improvements are below average for their age and location. The parking lot improvements are in poor condition. The kitchen and bathroom facilities are in poor to fair condition. Only the garage and the front driveway were in average condition. The property may still function as a search and rescue center or similar use, but the improvements are highly depreciated.   Packet Pg. 131 Improvements Description and Analysis 36 Former San Bernardino County Mountain Search & Rescue Station Westerly view of the subject from across Harrison Street. Photo taken June 2, 2022. Northwest view of the subject. Photo taken June 2, 2022. Southerly view of the subject. Photo taken June 2, 2022. Northeasterly view of the subject. Photo taken June 2, 2022. View of locker room. Photo taken June 2, 2022. View of garage. Photo taken June 2, 2022.   Packet Pg. 132 Improvements Description and Analysis 37 Former San Bernardino County Mountain Search & Rescue Station View of the bathroom. Photo taken June 2, 2022. View of the kitchen. Photo taken June 2, 2022. View of the office/living area. Photo taken June 2, 2022. View of the land area subject to the flood control easement. Photo taken June 2, 2022. Northerly view of the subject. Photo taken June 2, 2022.   Packet Pg. 133 Improvements Description and Analysis 38 Former San Bernardino County Mountain Search & Rescue Station Floor Plan   Packet Pg. 134 Real Estate Taxes 39 Former San Bernardino County Mountain Search & Rescue Station Real Estate Taxes Real estate tax assessments are administered by the Assessor of San Bernardino County and are estimated by jurisdiction on a county basis for the subject. The property is subject to the property tax rules of the State of California, which control the activities and policies of local assessment jurisdictions. These laws were significantly modified on June 7, 1978, when the State’s voters passed Proposition 13, adding Article XIIIA to the State Constitution. Proposition 13 abolished the practice of periodic reassessment of properties based on market value appraisals. Instead, real property is subject to reassessment (i.e., revaluation at full or partial current market value) only when changes in ownership or new construction take place. Otherwise, increases in assessed value are limited to a general rate of 2%, plus the rates needed to service any bonded indebtedness. Special assessments can also be added and are often related to the installation of infrastructure. Generally speaking, property taxes in San Bernardino County tend to range from 1.1% to 1.4% of a property’s assessed value. Due to California’s tax laws, most properties within San Bernardino County have very similar effective tax rates. The subject parcels are owned by the City of San Bernardino and therefore are not subject to real estate taxes. They are located in tax rate area 7228 which carries a 2021/2022 tax rate of 1.2923%. Real estate taxes would be adjusted upon sale of the subject property.   Packet Pg. 135 Highest and Best Use 40 Former San Bernardino County Mountain Search & Rescue Station Highest and Best Use The highest and best use of a property is the reasonably probable use resulting in the highest value, and represents the use of an asset that maximizes its productivity. Process Before a property can be valued, an opinion of highest and best use must be developed for the subject site, both as though vacant, and as improved or proposed. By definition, the highest and best use must be: Physically possible. Legally permissible under the zoning regulations and other restrictions that apply to the site. Financially feasible. Maximally productive, i.e., capable of producing the highest value from among the permissible, possible, and financially feasible uses. As Though Vacant First, the property is evaluated as though vacant, with no improvements. Physically Possible The physical characteristics of the site impose restrictions on development as approximately 70% of the site is located within a floodway and subject to a flood control easement. In addition, the majority of the remaining area is within Flood Zone A which is an area with 100-year flooding. David Drake, Chief with SBCFCD indicated no development would be allowed within the easement area. He indicated development is possible in the area not impacted by the easement. However, he indicated there would be additional safety requirements due to the flood zone. Overall, the subject’s flood control easement and partial location within a floodway, impose restrictions on development and potential uses. Legally Permissible The site is zoned PFC, Public Flood Control. Based on our interviews with planning staff, SBCFCD staff and a review of the zoning code, a low intensity use similar to the characteristics of surrounding developments would be allowed. The lowest intensity zone in the surrounding area is RE, Residential Estate. For the purposes of our analysis, based on the surrounding uses, we have assumed the subject property is zoned RE, Residential Estate. Permitted uses include single-family residences, accessory dwelling units, day care homes, and community care facilities. There is a flood control easement which impacts 70% of the property. No development is legally permissible within this area. There are no other apparent legal restrictions, such as easements or deed restrictions, effectively limiting the use of the property. Given prevailing land use patterns in the area, only low density uses such as single- family residential is given further consideration in determining highest and best use of the site, as though vacant.   Packet Pg. 136 Highest and Best Use 41 Former San Bernardino County Mountain Search & Rescue Station Financially Feasible Based on the accompanying analysis of the market, there is currently adequate demand for single- family residences in the subject’s area. It appears a newly developed single-family residential use on the site would have a value commensurate with its cost. Therefore, single-family residential is considered to be financially feasible. Maximally Productive There does not appear to be any reasonably probable use of the site that would generate a higher residual land value than single-family residential. Accordingly, single-family residential developed to the normal market density level permitted by zoning, is the maximally productive use of the property. Conclusion Development of the site for single-family residential is the only use which meets the four tests of highest and best use. Therefore, it is concluded to be the highest and best use of the property as though vacant. As Improved The subject site is developed with a special purpose property consisting of a search and rescue station. The existing improvements, while in poor to fair condition, can continue to be utilized. Based on our analysis, there does not appear to be any alternative use that could reasonably be expected to provide a higher present value than a search and rescue use, and the value of the existing improved property exceeds the value of the site, as if vacant. For these reasons, use as a search and rescue station, is concluded to be maximally productive and the highest and best use of the property as improved. Most Probable Buyer Taking into account the size and characteristics of the property and its special purpose use, the likely buyer is search and rescue type agency or an owner-user.   Packet Pg. 137 Valuation Methodology 42 Former San Bernardino County Mountain Search & Rescue Station Valuation Valuation Methodology Appraisers usually consider three approaches to estimating the market value of real property. These are the cost approach, sales comparison approach and the income capitalization approach. The cost approach assumes that the informed purchaser would pay no more than the cost of producing a substitute property with the same utility. This approach is particularly applicable when the improvements being appraised are relatively new and represent the highest and best use of the land or when the property has unique or specialized improvements for which there is little or no sales data from comparable properties. The sales comparison approach assumes that an informed purchaser would pay no more for a property than the cost of acquiring another existing property with the same utility. This approach is especially appropriate when an active market provides sufficient reliable data. The sales comparison approach is less reliable in an inactive market or when estimating the value of properties for which no directly comparable sales data is available. The sales comparison approach is often relied upon for owner-user properties. The income capitalization approach reflects the market’s perception of a relationship between a property’s potential income and its market value. This approach converts the anticipated net income from ownership of a property into a value indication through capitalization. The primary methods are direct capitalization and discounted cash flow analysis, with one or both methods applied, as appropriate. This approach is widely used in appraising income-producing properties. Reconciliation of the various indications into a conclusion of value is based on an evaluation of the quantity and quality of available data in each approach and the applicability of each approach to the property type. The methodology employed in this assignment is summarized as follows: Approaches to Value Approach Applicability to Subject Use in Assignment Cost Approach Applicable Utilized Sales Comparison Approach Not Applicable Not Utilized Income Capitalization Approach Not Applicable Not Utilized We begin our valuation by determining the value of the underlying land. The second step is to determine the depreciated replacement cost of the improvements and add it to the value of the land to determine an overall value.   Packet Pg. 138 Land Valuation 43 Former San Bernardino County Mountain Search & Rescue Station Land Valuation To develop an opinion of the subject’s land value, as if vacant and available to be developed to its highest and best use, we utilize the sales comparison approach. Our search for comparable sales focused on transactions within the following parameters: Location: Properties within a two-mile radius of the subject property Size: Properties 0.5 to 5 acres in size. Use: Sites that can be put to low density, single-family residential uses. As previously discussed, for the purposes of our analysis, we have assumed a Residential Estate zoning designation for the subject. Transaction Date: January 2021 through the present. For this analysis, we use price per usable acre as the appropriate unit of comparison because market participants typically compare sale prices and property values on this basis. The most relevant sales are summarized in the following table.   Packet Pg. 139 Land Valuation 44 Former San Bernardino County Mountain Search & Rescue Station Summary of Comparable Land Sales No.Name/Address Sale Date; Status Sale Price Usable SF; Usable Acres Zoning $/SF Land $/Acre 1 SEC Glendenning Way Jun-22 $250,000 74,052 RS $3.38 $147,059 Glendenning Way Closed 1.70 San Bernardino Tax ID: 0153-372-02, 03, 04, 05, 08 2 425 Arrowhead Road Mar-22 $425,000 146,362 RE $2.90 $126,488 425 Arrowhead Rd. Closed 3.36 San Bernardino 3 Harrison Canyon Rd Mar-22 $100,000 53,579 RS $1.87 $81,301 Harrison Canyon Rd Closed 1.23 San Bernardino Tax ID: 0270-143-27 4 890 1/2 East Marshall Blvd Aug-21 $35,000 26,000 RE $1.35 $58,636 890 1/2 E. Marshall Blvd. Closed 0.60 San Bernardino Tax ID: 0153-391-01 Subject 47,916 RE Former San Bernardino County Mountain Search & Rescue Station 1.10 San Bernardino, CA Comments: This listing broker indicated the sale consisted of five parcels of land. He stated the property was unentitled at the time of sale and the buyer planned to construct two single-family residences on the property. He also said the property is next to the flood control bank, with residential surroundings on all other sides. Comments: The listing broker indicated the property had been legally subdivided into three lots and was ready to be built. As a result, the property was entitled at the time of sale. We also confirmed the sale with the buyer's broker, Meljorie Castelo. She confirmed the property had been subdivided into three lots and three residences could be constructed on the property. However she stated the buyer purchased the property for truck parking, but may eventually construct residences on the property. Comments: The listing broker indicated the property was unentitled at the time of sale. She stated she did not represent the buyer but believes he purchased the property to construct a single-family residence. She said the property included views of the area to the south. The property is located on a canyon with single-family residential surroundings. Comments: The listing broker was one of the owner's of the property. She indicated the property did not have legal access and that an easement would need to be granted over an adjacent single family residence. Her parents owned the residence to the south and would not grant one. Although it has a Marshall Boulevard street address, it does not have frontage on Marshall Boulevard. However, the buyer of this property also purchased an adjacent residence. The listing broker stated the sale price for this property considered the fact that it did not have legal access. The property is adjacent to the flood control area. The surroundings to the north, west and south primarily consist of single-family residences and vacant sites.   Packet Pg. 140 Land Valuation 45 Former San Bernardino County Mountain Search & Rescue Station Comparable Land Sales Map   Packet Pg. 141 Land Valuation 46 Former San Bernardino County Mountain Search & Rescue Station Sale 1 SEC Glendenning Way Sale 2 425 Arrowhead Road Sale 3 Harrison Canyon Rd Sale 4 890 1/2 East Marshall Blvd   Packet Pg. 142 Land Valuation 47 Former San Bernardino County Mountain Search & Rescue Station Analysis and Adjustment of Sales The sales are compared to the subject and adjusted to account for material differences that affect value. Adjustments are considered for the following factors, in the sequence shown below. Adjustment Factor Accounts For Comments Effective Sale Price Atypical economics of a transaction, such as demolition cost or expenditures by buyer at time of purchase. No adjustments were warranted. Real Property Rights Fee simple, leased fee, leasehold, partial interest, etc. No adjustments were warranted. Financing Terms Seller financing, or assumption of existing financing, at non-market terms. No adjustments were warranted. Conditions of Sale Extraordinary motivation of buyer or seller, assemblage, forced sale. No adjustments were warranted. Market Conditions Changes in the economic environment over time that affect the appreciation and depreciation of real estate. As indicated in the residential market analysis, single-family residence prices showed a nearly 20% increase over the last year. However, prices have been generally level the last three months due to increasing interest rates. In addition, construction costs have also increased at a rate of approximately 15% over the last year. This nearly offsets the increases in improved property values. As a result, we have utilized a rate of 5% per year up to May 2022 for improving market conditions. Location Market or submarket area influences on sale price; surrounding land use influences. All of the comparables are within two miles of the subject property and were similar in terms of location. Access/Exposure Convenience to transportation facilities; ease of site access; visibility; traffic counts. Sale No. 1 has frontage and access along two streets. It was superior in terms of access and required a downward adjustment. Sale No. 4 lacks legal access. It was therefore   Packet Pg. 143 Land Valuation 48 Former San Bernardino County Mountain Search & Rescue Station Adjustment Factor Accounts For Comments inferior in terms of access and required an upward adjustment. Size Inverse relationship that often exists between parcel size and unit value. The useable land area for the subject property is 1.1 acres. Sale No. 2 was over three acres in size and was inferior. An upward adjustment was warranted. Shape and Topography Primary physical factors that affect the utility of a site for its highest and best use. Sale Nos. 1 and 4 have rectangular shapes which are more suitable for development. These sales were superior in terms of shape and required downward adjustments. Zoning Government regulations that affect the types and intensities of uses allowable on a site. All of the sale comparables are zoned for low density single-family residential development. No adjustments were warranted. Entitlements The specific level of governmental approvals attained pertaining to development of a site. According to both the seller’s broker and the buyer’s broker, Sale 2 had approvals for a three lot subdivision. It was therefore superior in terms of entitlements and required a downward adjustment. View Accounts for any scenic views. The comparables located north of 40th Street are located in a canyon with views. Sales 2 and 3 were superior in terms of view. These sales required downward adjustments.   Packet Pg. 144 Land Valuation 49 Former San Bernardino County Mountain Search & Rescue Station Adjustment Factor Accounts For Comments Flood Zone Accounts for additional development requirements and flood zone insurance requirements. Sale 2 is the only comparable which is within Flood Zone A. It required no adjustments. Sale 3 is located within Flood Zone X, where no flood insurance is required. It was superior and required a downward adjustment. Sales 1 and 3 are located within Flood Zone X-500, which includes areas inundated by 500-year flooding, compared to the subject’s 100-year flooding area. These comparables were also superior and required downward adjustments.   Packet Pg. 145 Land Valuation 50 Former San Bernardino County Mountain Search & Rescue Station The following table summarizes the adjustments we make to each sale. Land Sales Adjustment Grid Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4 Name Former San Bernardino County Mountain Search & Rescue Station SEC Glendenning Way 425 Arrowhead Road Harrison Canyon Rd 890 1/2 East Marshall Blvd Address 3250 Harrison St. Glendenning Way 425 Arrowhead Rd. Harrison Canyon Rd. 890 1/2 E. Marshall Blvd. City San Bernardino San Bernardino San Bernardino San Bernardino San Bernardino County San Bernardino San San Bernardino San Bernardino San Bernardino State California CA CA CA CA Sale Date Jun-22 Mar-22 Mar-22 Aug-21 Sale Status Closed Closed Closed Closed Sale Price $250,000 $425,000 $100,000 $35,000 Square Feet 159,865 74,052 146,362 53,579 26,000 Acres 3.67 1.70 3.36 1.23 0.60 Usable Square Feet 47,916 74,052 146,362 53,579 26,000 Usable Acres 1.10 1.70 3.36 1.23 0.60 Price per Usable Acre $147,059 $126,488 $81,301 $58,636 Property Rights Fee Simple Fee Simple Fee Simple Fee Simple % Adjustment –––– Financing Terms Cash to seller Cash to seller Cash to seller Cash to seller % Adjustment –––– Conditions of Sale % Adjustment –––– Market Conditions 8/10/2022 Jun-22 Mar-22 Mar-22 Aug-21 Annual % Adjustment Variable –1%1%4% Cumulative Adjusted Price $147,059 $127,753 $82,114 $60,982 Location –––– Access/Exposure Superior ––Sign. Inferior Size –Inferior –– Shape and Topography Superior ––Superior Zoning –––– Entitlements –Superior –– View –Superior Superior – Flood Zone Superior –Superior Superior Overall Comparability Superior Superior Superior Slightly Inferior Indicated Value $65,000   Packet Pg. 146 Land Valuation 51 Former San Bernardino County Mountain Search & Rescue Station Land Value Conclusion Based on the foregoing discussion of comparability, the market data and the subject property may be arrayed as shown below: Land Valuation Array Item No.Overall Comparability Market Conditions Adjusted Price Per Acre 1 Superior $147,059 2 Superior $127,753 3 Superior $82,114 Subject 4 Slightly Inferior $60,982 The sale comparables range from $60,982 to $147,059 per acre. Sale No. 1 is rectangular in shape and has frontage on two streets. It was superior overall. Sale No. 2 had approvals for a three-lot subdivision and was superior in terms of entitlements. Based on the analysis, we have bracketed the underlying land value of the subject as inferior to Sale 3 at $82,114 per acre and slightly superior to Sale 4 ($60,982 per acre). Sale 4 was considered to be the most similar. It is adjacent to the flood control area, but lacks frontage and direct access. As a result, it was slightly inferior. Based on our comparison analysis, we arrive at a land value conclusion as follows: Land Value Conclusion Indicated Value per Usable Acre $65,000 Subject Usable Acres 1.10 Indicated Value $71,500 Rounded $70,000 A potential buyer of the subject property would be required to purchase the entire land area. However, in our opinion, a buyer would not assign any value to the land area impacted by the easement because the SBCFCD has essentially all the rights over the area. We have therefore deducted the land area subject to the easement from the gross land area to arrive at a useable land area. In our opinion, the area impacted by the flood control easement has a nominal value. As such, although the above analysis is done on a useable land area basis, the resulting value conclusion is applicable to the entire subject property land area.   Packet Pg. 147 Cost Approach 52 Former San Bernardino County Mountain Search & Rescue Station Cost Approach The steps taken to apply the cost approach are: Develop an opinion of the value of the land as though vacant and available to be developed to its highest and best use, as of the effective date of the appraisal; Estimate the replacement cost new of the existing improvements using Marshall Valuation Service; Estimate depreciation from all causes and deduct this estimate from replacement cost new to arrive at depreciated replacement cost of the improvements; and Add land value to the depreciated replacement cost of the improvements to arrive at a market value indication for the property overall. Replacement Cost Replacement cost is the estimated cost to construct, at current prices as of a specified date, a substitute for a building or other improvements, using modern materials and current standards, design, and layout. Estimates of replacement cost for the purpose of developing a market value opinion include three components: direct costs, indirect costs (also known as soft costs) and entrepreneurial incentive. Direct Costs Direct costs are expenditures for labor, materials, equipment and contractor’s overhead and profit. We use Marshall Valuation Service (MVS) as the basis of our direct cost estimate. In addition to direct costs, MVS includes certain indirect costs such as architectural and engineering fees, and interest on building loan funds during construction. Indirect Costs MVS does not include all of the indirect costs that are appropriate in a replacement cost estimate. Therefore, we add an allowance for the following indirect costs that are not contained within MVS: taxes and carrying costs on land during construction; legal and accounting fees; and marketing and finance costs prior to stabilization. We estimate that a 10% allowance for additional indirect costs is appropriate. Entrepreneurial Incentive Entrepreneurial incentive is the financial reward that a developer would expect to receive in addition to recovering all direct and indirect costs. This is the expected compensation that would be necessary to motivate a developer to undertake the project. Entrepreneurial incentive for similar properties typically ranges from 10% to 15%. An estimate of 15% is applied to the total replacement costs used in this analysis. Replacement Cost New The following tables show our replacement cost estimates for the subject building improvements and site improvements.   Packet Pg. 148 Cost Approach 53 Former San Bernardino County Mountain Search & Rescue Station Replacement Cost Estimate Building Improvements Bldg Name MVS Building Type MVS Class Quality Quantity Unit Unit Cost Cost New Fire Station D Average 3,506 SF $227.46 $797,475 Subtotal - Building Costs $797,475 Plus: Indirect Cost 10%$79,747 Subtotal $877,222 Plus: Entrepreneurial Incentive 15%$131,583 Total Building Costs $1,008,806 Site Improvements Item Quality Quantity Unit Unit Cost Cost New Asphalt paving Average 11,000 SF $3.69 $40,590 Concrete paving - Rear Yard Average 1,500 SF $6.54 $9,810 Concrete Driveway Average 1,900 SF $6.54 $12,426 Chain-Link Fencing Average 360 LF $29.54 $10,634 Subtotal - Site Improvement Costs $73,460 Plus: Indirect Cost 10%$7,346 Subtotal $80,806 Plus: Entrepreneurial Incentive 15%$12,121 Total Site Improvement Costs $92,927 Overall Property Building Improvements $797,475 Site Improvements $73,460 Furniture, Fixtures & Equipment $0 Subtotal - Replacement Cost New $870,935 Plus: Indirect Cost 10%$87,094 Subtotal $958,029 Plus: Entrepreneurial Incentive 15%$143,704 $1,101,733 Source: Marshall Valuation Service except for Indirect Costs and Entrepreneurial Incentive, which are appraiser's estimates. Total Replacement Cost New Former San Bernardino County Mountain Search & Rescue Station Building Improvements - Unit Costs Building 1 Name: MVS Building Type:Fire Station Unit SF Current Multiplier 1.090 Const Class:D Unit Cost $152.00 Local Multiplier 1.130 Quality:Average Sprinklers:Story Ht Multiplier 1.046 Quality Rating:Average HVAC Adjust $24.55 Perimeter Multiplier 1.000 Section/Page Section 15, Page 14 Other: Economic Life 35 Subtotal:$176.55 Final Unit Cost $227.46 Source: Marshall Valuation Service Former San Bernardino County Mountain Search & Rescue Station The subject property is an average quality fire station. MVS does not include roof mounted HVAC units in their average quality fire station costs. As a result, an adjustment was warranted for HVAC. A height multiplier was also required due to the height of the garage.   Packet Pg. 149 Cost Approach 54 Former San Bernardino County Mountain Search & Rescue Station Site Improvements - Unit Costs Quality:Average Unit Cost $2.79 Current Multiplier 1.170 Section:66 Other:Local Multiplier 1.130 Page:3 Other: Unit:SF Subtotal:$2.79 Final Unit Cost $3.69 Quality:Average Unit Cost $4.95 Current Multiplier 1.170 Section:66 Other:Local Multiplier 1.130 Page:3 Other: Unit:SF Subtotal:$4.95 Final Unit Cost $6.54 Quality:Average Unit Cost $4.95 Current Multiplier 1.170 Section:66 Other:Local Multiplier 1.130 Page:3 Other: Unit:SF Subtotal:$4.95 Final Unit Cost $6.54 Quality:Average Unit Cost $25.25 Current Multiplier 1.170 Section:66 Other:Local Multiplier 1.000 Page:4 Other: Unit:LF Subtotal:$25.25 Final Unit Cost $29.54 Source: Marshall Valuation Service Site Improvement 1 Name: Site Improvement 2 Name: Site Improvement 3 Name: Site Improvement 4 Name: Asphalt paving Concrete paving - Rear Yard Concrete Driveway Chain-Link Fencing Depreciation Depreciation is the difference between the replacement cost new of the improvements and their contribution to overall property value on the effective date of the appraisal. There are three major causes of depreciation: 1.Physical deterioration - The loss in value due to the wear and tear that begins when a building is completed and placed into service. Physical deterioration can be curable (referred to as deferred maintenance) or incurable. 2.Functional obsolescence - The loss in value due to changes in market tastes and standards. Similar to physical deterioration, functional obsolescence can be curable or incurable. 3.External obsolescence - The loss in value due to negative external influences. These influences can be temporary or permanent and are generally incurable by the owner, landlord or tenant. There are three principal methods of estimating depreciation: the market extraction method, the economic age-life method, and the breakdown method. The economic age-life method is used in this analysis. Economic Age-Life Method In the economic age-life method, depreciation is estimated by dividing the effective age of the improvements by their total economic life. This method results in a lump sum estimate for all depreciation, including the loss in value from all physical, functional and external obsolescence.   Packet Pg. 150 Cost Approach 55 Former San Bernardino County Mountain Search & Rescue Station Deferred Maintenance - Prior to applying the ratio from the economic age-life method, deferred maintenance is deducted. The rear door which provided access to the kitchen was broken and needed to be replaced. At the time of our inspection, the doorway was being enclosed. We have assumed that the broken door has been repaired. The subject property lacks any recent renovation and is in poor to fair condition. However, there were no signs of items which needed immediate repair other than the door already discussed. We note that the parking lot was in very poor condition. In our analysis, we have considered the parking lot improvements as fully depreciated. As a result, no additional adjustment for deferred maintenance was warranted. Functional Obsolescence – A deduction for functional obsolescence is intentionally withheld from the preceding effective age/total economic life ratio. We have not made an adjustment for functional obsolescence. External Obsolescence - A deduction for external obsolescence is intentionally withheld from the preceding effective age/total economic life ratio. We have not made an adjustment for external obsolescence. Final Estimate of Depreciation Our estimate of depreciation and calculation of depreciated replacement cost are shown in the following tables. Estimate of Depreciation Building Improvements Replacement Cost New $1,008,806 Less: Deferred Maintenance $0 Remaining Cost $1,008,806 Depreciation: Economic Age-Life Method 75.0%-$756,604 Total Depreciation -$756,604 Depreciated Replacement Cost $252,201 Site Improvements Replacement Cost New $92,927 Less: Deferred Maintenance $0 Remaining Cost $92,927 Depreciation: Economic Age-Life Method 89.4%-$83,076 Total Depreciation -$83,076 Depreciated Replacement Cost $9,851 Overall Property Replacement Cost New $1,101,733 Deferred Maintenance $0 Remaining Cost $1,101,733 Depreciation: Economic Age-Life Method -$839,680 Total Depreciation -$839,680 Depreciated Replacement Cost $262,053 Rounded:$260,000   Packet Pg. 151 Cost Approach 56 Former San Bernardino County Mountain Search & Rescue Station Depreciation Worksheet - Building Improvements Bldg #Bldg Name Effective Age (Yrs) Economic Life (Yrs) S/L Deprec. % Other Deprec. % Replacement Cost New % of Overall RCN Other Deprec. $ 1 Former San Bernardino County Mountain Search & Rescue Station303585.7%75.0%$1,008,806 100.0% $756,604 Total $1,008,806 100.0% $756,604 The straight line depreciation results in a depreciation rate of 85.7%. A depreciation rate of over 80% is indicative of a property that is beyond its useful life. We have considered that the garage still provides good utility and is in average condition. Based on our inspection and considering the utility of the garage, a deprecation rate of 75% would be appropriate for the subject property. Depreciation Worksheet - Site Improvements Site Imp #Item Effect Age (Yrs) Life Expect (Yrs) S/L Deprec % Replacement Cost New % of Overall RCN Wtd. Avg. S/L Deprec. 1 Asphalt paving 11 11 100.0%$51,346 55.3%55.3% 2 Concrete paving - Rear Yard 16 16 100.0%$12,410 13.4%13.4% 3 Concrete Driveway 10 16 62.5%$15,719 16.9%10.6% 4 Chain-Link Fencing 12 17 70.6%$13,453 14.5%10.2% Total $92,927 100.0%89.4% According to the client, the building roof and the concrete driveway were replaced in 2003, nearly twenty years ago. We note that the concrete driveway was in average condition compared to the rear yard concrete paving and the asphalt paved parking lot. No other improvements were reported. Due to the lack of any significant renovation in many years, the building is highly depreciated. In addition, the asphalt paved parking lot and the rear concrete paved lot areas are cracking and are at the end of their life expectancies. In our opinion these site improvements are fully depreciated. The concrete paved driveway is in better condition than the parking lot and warranted a lower effective age. Value Indication By combining our land value conclusion with the depreciated replacement cost of the improvements, we arrive at a value indication by the cost approach as shown in the following table. Value Indication by Cost Approach Depreciated Replacement Cost $260,000 Land Value $70,000 Indicated Property Value $330,000 Rounded $330,000   Packet Pg. 152 Reconciliation and Conclusion of Value 57 Former San Bernardino County Mountain Search & Rescue Station Reconciliation and Conclusion of Value The cost approach is the only applicable method. This is the most reliable valuation method for the subject due to it being a special purpose property. The sales comparison and income approaches are not judged to be applicable. For the sales comparison approach, while there are sales of fire stations, we were unable to find sales of search and rescue stations. Additionally, the subject property is highly depreciated and is situated on land within a flood zone, has a Public Flood Control zoning, and a majority of the land is impacted by a flood control easement. As a result, there is limited or no sales data of properties which have all these features. The income approach is not applicable, as there is not an active rental market for similar properties that would permit us to develop a reliable estimate of the property’s income generating potential. Therefore, only the cost approach is utilized. Summary of Value Indications Cost Approach $330,000 Sales Comparison Approach Not Used Income Capitalization Approach Not Used Reconciled $330,000 Final Opinion of Value Based on the preceding valuation analysis and subject to the definitions, assumptions, and limiting conditions expressed in the report, our opinion of value is as follows: Value Conclusion Value Type & Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value Fee Simple August 10, 2022 $330,000 Extraordinary Assumptions and Hypothetical Conditions 1. Our client has provided us with a useable land area figure which excludes the land area impacted by the flood control easement. We assume this figure is accurate. If it is found to be inaccurate, our value conclusion may change. 1.None. The use of any extraordinary assumption or hypothetical condition may have affected the assignment results. The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. The value conclusion(s) in this report consider the impact of COVID-19 on the subject property.   Packet Pg. 153 58 Former San Bernardino County Mountain Search & Rescue Station Exposure Time Exposure time is the length of time the subject property would have been exposed for sale in the market had it sold on the effective valuation date at the concluded market value. Based on the concluded market value stated previously, it is our opinion that the probable exposure time is 3 to 6 months. Marketing Period Marketing time is an estimate of the amount of time it might take to sell a property at the concluded market value immediately following the effective date of value. We estimate the subject’s marketing period at 3 to 6 months.   Packet Pg. 154 Certification 59 Former San Bernardino County Mountain Search & Rescue Station Certification We certify that, to the best of our knowledge and belief: 1.The statements of fact contained in this report are true and correct. 2.The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3.We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4.We have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding the agreement to perform this assignment. 5.We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6.Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 7.Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 8.Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice as well as applicable state appraisal regulations. 9.The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 10.The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 11.Jerardo Arciniega, MAI, and Beth Finestone, MAI, AI-GRS, FRICS, CRE, made a personal inspection of the property that is the subject of this report. 12.Significant real property appraisal assistance was provided by Alexa Amata who has not signed this certification. 13.We have experience in appraising properties similar to the subject and are in compliance with the Competency Rule of USPAP.   Packet Pg. 155 Certification 60 Former San Bernardino County Mountain Search & Rescue Station 14.As of the date of this report, Jerardo Arciniega, MAI, and Beth Finestone, MAI, AI-GRS, FRICS, CRE, have completed the continuing education program for Designated Members of the Appraisal Institute. Jerardo Arciniega, MAI California Certified General Real Estate Appraiser #AG042445 Beth Finestone, MAI, AI-GRS, FRICS, CRE California Certified General Real Estate Appraiser #AG004030   Packet Pg. 156 Assumptions and Limiting Conditions 61 Former San Bernardino County Mountain Search & Rescue Station Assumptions and Limiting Conditions This appraisal and any other work product related to this engagement are limited by the following standard assumptions, except as otherwise noted in the report: 1.The title is marketable and free and clear of all liens, encumbrances, encroachments, easements and restrictions. The property is under responsible ownership and competent management and is available for its highest and best use. 2.There are no existing judgments or pending or threatened litigation that could affect the value of the property. 3.There are no hidden or undisclosed conditions of the land or of the improvements that would render the property more or less valuable. Furthermore, there is no asbestos in the property. 4.The revenue stamps placed on any deed referenced herein to indicate the sale price are in correct relation to the actual dollar amount of the transaction. 5.The property is in compliance with all applicable building, environmental, zoning, and other federal, state and local laws, regulations and codes. 6.The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. This appraisal and any other work product related to this engagement are subject to the following limiting conditions, except as otherwise noted in the report: 1.An appraisal is inherently subjective and represents our opinion as to the value of the property appraised. 2.The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events. 3.No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated. 4.No environmental impact studies were either requested or made in conjunction with this appraisal, and we reserve the right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the appraisal assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. 5.Unless otherwise agreed to in writing, we are not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the property without compensation relative to such additional employment. 6.We have made no survey of the property and assume no responsibility in connection with such matters. Any sketch or survey of the property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size. The appraisal   Packet Pg. 157 Assumptions and Limiting Conditions 62 Former San Bernardino County Mountain Search & Rescue Station covers the property as described in this report, and the areas and dimensions set forth are assumed to be correct. 7.No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and we have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in our appraisal. 8.We accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations such as soils and seismic stability; and civil, mechanical, electrical, structural and other engineering and environmental matters. Such considerations may also include determinations of compliance with zoning and other federal, state, and local laws, regulations and codes. 9.The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context. 10.Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the persons signing the report. 11.Information, estimates and opinions contained in the report and obtained from third-party sources are assumed to be reliable and have not been independently verified. 12.Unless otherwise stated in the report, no consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only the real property has been considered. 13.The current purchasing power of the dollar is the basis for the values stated in the appraisal; we have assumed that no extreme fluctuations in economic cycles will occur. 14.The values found herein are subject to these and to any other assumptions or conditions set forth in the body of this report but which may have been omitted from this list of Assumptions and Limiting Conditions. 15.The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will vary from our estimates, and the variations may be material. 16.The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific survey or analysis of the property to determine whether the physical aspects   Packet Pg. 158 Assumptions and Limiting Conditions 63 Former San Bernardino County Mountain Search & Rescue Station of the improvements meet the ADA accessibility guidelines. We claim no expertise in ADA issues, and render no opinion regarding compliance of the subject with ADA regulations. Inasmuch as compliance matches each owner’s financial ability with the cost to cure the non- conforming physical characteristics of a property, a specific study of both the owner’s financial ability and the cost to cure any deficiencies would be needed for the Department of Justice to determine compliance. 17.The appraisal report is prepared for the exclusive benefit of you, your subsidiaries and/or affiliates. It may not be used or relied upon by any other party. All parties who use or rely upon any information in the report without our written consent do so at their own risk. 18.No studies have been provided to us indicating the presence or absence of hazardous materials on the subject property or in the improvements, and our valuation is predicated upon the assumption that the subject property is free and clear of any environment hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property. IRR - Los Angeles, Integra Realty Resources, Inc., and their respective officers, owners, managers, directors, agents, subcontractors or employees (the “Integra Parties”), shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the subject property. 19.The persons signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the subject property is located in an identified Special Flood Hazard Area. However, we are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the property, and the value conclusion is predicated on the assumption that wetlands are non-existent or minimal. 20.We are not a building or environmental inspector. The Integra Parties do not guarantee that the subject property is free of defects or environmental problems. Mold may be present in the subject property and a professional inspection is recommended. 21.The appraisal report and value conclusions for an appraisal assume the satisfactory completion of construction, repairs or alterations in a workmanlike manner. 22.IRR - Los Angeles is an independently owned and operated company. The parties hereto agree that Integra shall not be liable for any claim arising out of or relating to any appraisal report or any information or opinions contained therein as such appraisal report is the sole and exclusive responsibility of IRR - Los Angeles. In addition, it is expressly agreed that in any action which may be brought against the Integra Parties arising out of, relating to, or in any way pertaining to the engagement letter, the appraisal reports or any related work product, the Integra Parties shall not be responsible or liable for any incidental or consequential damages or losses, unless the appraisal was fraudulent or prepared with intentional misconduct. It is further expressly agreed that the collective liability of the Integra Parties in any such action shall not exceed the fees paid for the preparation of the assignment (unless   Packet Pg. 159 Assumptions and Limiting Conditions 64 Former San Bernardino County Mountain Search & Rescue Station the appraisal was fraudulent or prepared with intentional misconduct). It is expressly agreed that the fees charged herein are in reliance upon the foregoing limitations of liability. 23.IRR - Los Angeles is an independently owned and operated company, which has prepared the appraisal for the specific intended use stated elsewhere in the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report is addressed to and shall be solely for the Client’s use and benefit unless we provide our prior written consent. We expressly reserve the unrestricted right to withhold our consent to your disclosure of the appraisal report or any other work product related to the engagement (or any part thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the appraisal report (even if their reliance was foreseeable). 24.The conclusions of this report are estimates based on known current trends and reasonably foreseeable future occurrences. These estimates are based partly on property information, data obtained in public records, interviews, existing trends, buyer-seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable. The Integra Parties are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While we are of the opinion that our findings are reasonable based on current market conditions, we do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, we assume competent and effective management and marketing for the duration of the projected holding period of this property. 25.The appraisal is also subject to the following: Extraordinary Assumptions and Hypothetical Conditions 1. Our client has provided us with a useable land area figure which excludes the land area impacted by the flood control easement. We assume this figure is accurate. If it is found to be inaccurate, our value conclusion may change. 1.None. The use of any extraordinary assumption or hypothetical condition may have affected the assignment results. The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.   Packet Pg. 160 Addenda Former San Bernardino County Mountain Search & Rescue Station Addendum A Appraiser Qualifications   Packet Pg. 161 Jerardo Arciniega, MAI Integra Realty Resources -Los Angeles irr.com T 818.290.5400 16030 Ventura Blvd. Suite 620 Encino, CA 91436-4473 Experience Mr. Arciniega, Associate Director, has been appraising real property since 2005. He is responsible for real estate analysis, data collection and studies including interviewing buyers, sellers, brokers and tenants with regard to the details of transactions and market conditions, as well as report writing for narrative appraisal assignments concerning all major real estate categories. Property types which he has appraised include retail, office, and industrial buildings, apartments, single-family residences, mobile home parks, gas stations, nurseries, renewable energy sites, self-storage facilities, and special purpose properties. He has worked on many high-profile right-of-way projects, including the Los Angeles Metro Purple Line expansion, the State Route-91 Corridor Improvement Project, among many others. His work also encompasses litigation support related to potential value diminution, eminent domain, and other issues. He has successfully appraised properties for various client groups such as public agencies (Los Angeles Department of Water and Power, Metropolitan Water District, Metropolitan Transportation Authority, cities of Riverside, Culver City, and South Gate), financial institutions, law firms, and individual property owners. In addition, he has represented property owners in assessment appeal cases. Professional Activities & Affiliations Member: Appraisal Institute, June 2019 Member: International Right of Way Association Chairman: Southern California Chapter of the Appraisal Institute, Northwestern Branch, 2nd Chair Licenses California, Certified General Real Estate Appraiser, AG042445, Expires May 2023 Education B.A., Economics (Cum Laude), California State University, Northridge Continuous participation in classes and seminars in pertinent study areas. Appraisal Institute courses completed: Advanced Concepts and Case Studies Advanced Income Capitalization Quantitative Analysis Advanced Market Analysis and Highest & Best Use Business Practices & Ethics Annual SCCAI Litigation Seminar General Appraiser Income Approach (403G), Part I General Appraiser Income Approach (404G), Part II General Appraiser Sales Comparison Approach General Appraiser Site Valuation and Cost Approach General Appraiser Report Writing and Case Studies General Appraiser Market Analysis and Highest and Best Use Real Estate Finance Statistics and Valuation Modeling jarciniega@irr.com -818.290.5416   Packet Pg. 162 Beth B. Finestone, MAI, AI-GRS, FRICS, CRE Integra Realty Resources -Los Angeles irr.com T 818.290.5400 16030 Ventura Boulevard Suite 620 Encino, CA 91436-4473 Experience Ms. Finestone, Managing Director for and a principal of INTEGRA REALTY RESOURCES – LOS ANGELES, has been with the firm since 2004 and has been appraising in Southern California since 1981. She has specialized in valuation and consulting services related to public agency clients and for major, investment grade commercial properties, e.g., office, industrial, retail, multifamily, land, and special purpose properties, for over 30 years. Ms. Finestone previously held senior positions with Finestone & Associates and Cushman & Wakefield of California. At Finestone & Associates from 1996 through 2003, she specialized in real estate appraisal, valuation and consulting services with focus on preparation of appraisals for industrial, commercial, and special purpose properties. This focus included consultation services, due diligence work, litigation support, and expert witness designation. At Cushman & Wakefield of California, Inc. from 1983 through 1996, Ms. Finestone was in the Los Angeles Appraisal Services Group, specializing in real estate valuation and consulting. By the end of her tenure, she was responsible for the management the Los Angeles Valuation Advisory Services Group, including preparation and review of appraisal reports, business development, consulting and litigation work, management and coordination of multi property assignments and national accounts, professional staff development, and support staff supervision. Ms. Finestone’s clients include public agencies, right of way firms, lenders, institutional investors, major corporations, law firms, and individual property owners. Her services include a wide range of specialized studies including value diminution (from both internal and external influences), market demand, feasibility, severance damages and project benefits, investment analysis, assessment allocation, reuse analysis, and the valuation of partial interests including leasehold, leased fee, possessory interests, and minority interests. Recent assignments include the 22 flowage easements for the State of California Department of Water Resources, 35 easements related to a culvert upgrade project in Los Angeles County, more than 100 partial acquisitions related to the California High Speed Rail Authority Project, 39 properties for the SR 91 Improvement Project, 10 properties for the Devore Interchange Improvements Project, and 28 properties for the Lakeview and Tustin Avenues/Rose Drive Grade Separation Project. Ms. Finestone has also been active in the appraisal of large tracts of mitigation land for Orange County Transportation Authority (OCTA). She has been involved in the appraisal of a number of mitigation parcels in Northern California for the High Speed Rail Authority. These involved land banks and conservation easements. Ms. Finestone also has significant experience valuing transportation corridor properties and pipeline easements. She has been extensively involved in valuing and doing counseling and consulting work related to rail corridors and crossings as part of the proposed high speed rail project in Central California. In addition, she has also appraised a number of federally owned properties, including the West Los Angeles Federal Building, federal courthouses in Los Angeles and Orange counties, and two Army bfinestone@irr.com -818.290.5455   Packet Pg. 163 Beth B. Finestone, MAI, AI-GRS, FRICS, CRE Integra Realty Resources -Los Angeles irr.com T 818.290.5400 16030 Ventura Boulevard Suite 620 Encino, CA 91436-4473 Experience (Cont'd) Reserve centers in the Los Angeles area. Much of this work has included a consulting component to aide clients in making feasibility and reuse studies of their properties. Ms. Finestone also has significant appraisal review experience and has reviewed large numbers of appraisals for Hatch Mott MacDonald, OCTA, City of Ontario, and the Los Angeles Unified School District. Professional Activities & Affiliations Appraisal Institute, Member (MAI) , December 1988 Appraisal Institute, General Review Specialist, June 2015 Royal Institute of Chartered Surveyors, Fellow (FRICS) , August 2008 Member: International Right of Way Association Counselor of Real Estate (CRE) , November 2015 Licenses California, Certified General Real Estate Appraiser, AG004030, Expires August 2024 Education M.B.A., Pepperdine University B.S., Kinesiology, University of California, Los Angeles Successfully completed numerous real estate and related courses and seminars sponsored by the Appraisal Institute, accredited universities, and others Currently certified by the Appraisal Institute’s program of continuing education for its designated members Qualified Before Courts & Administrative Bodies Superior courts in California within the counties of Los Angeles and Orange Tax Appeal Boards of Los Angeles and San Diego counties Arbitration testimony at hearings in Los Angeles County Miscellaneous Los Angeles Business Journal 2009 Nominee for Executive of the Year – Women Making a Difference, May 2009 Designated one of Real Estate Southern California’s 2006 Women of Influence, October 2006 bfinestone@irr.com -818.290.5455   Packet Pg. 164 About IRR Integra Realty Resources, Inc. (IRR) provides world-class commercial real estate valuation, counseling, and advisory services. Routinely ranked among leading property valuation and consulting firms, we are now the largest independent firm in our industry in the United States, with local offices coast to coast and in the Caribbean. IRR offices are led by MAI-designated Senior Managing Directors, industry leaders who have over 25 years, on average, of commercial real estate experience in their local markets. This experience, coupled with our understanding of how national trends affect the local markets, empowers our clients with the unique knowledge, access, and historical perspective they need to make the most informed decisions. Many of the nation's top financial institutions, developers, corporations, law firms, and government agencies rely on our professional real estate opinions to best understand the value, use, and feasibility of real estate in their market. Local Expertise...Nationally! irr.com   Packet Pg. 165 Addenda Former San Bernardino County Mountain Search & Rescue Station Addendum B Flood Control Easement   Packet Pg. 166 &!, , .,- : . : . . .I . .. .. - ...   Packet Pg. 167 / ..' -. . .. - . -- -__I_. I   Packet Pg. 168 Addenda Former San Bernardino County Mountain Search & Rescue Station Addendum C Comparable Data   Packet Pg. 169 Addenda Former San Bernardino County Mountain Search & Rescue Station Land Sales   Packet Pg. 170 Land Sale Profile Sale No. 1 Location & Property Identification SEC Glendenning Way Property Name: Sub-Property Type:Residential Glendenning Way Address: San Bernardino, CA 92404 City/State/Zip: San Bernardino County: Suburban Market Orientation: IRR Event ID: 2891376 Sale Information $250,000 Sale Price: $250,000 Effective Sale Price: 06/02/2022 Sale Date: Sale Status: Closed $/Acre(Gross): $147,059 $/Land SF(Gross): $3.38 $/Acre(Usable): $147,059 $/Land SF(Usable): $3.38 Grantor/Seller: Desher Family Trust Grantee/Buyer: Jose Rodolfo Garcia & Patricia Cordova V Sandra Assets Sold: Real estate only Property Rights: Fee Simple % of Interest Conveyed: 100.00 Financing: Cash to seller Verified By: Jerardo Arciniega, MAI Verification Date: 08/11/2022 Confirmation Source: William Quimby, Hamilton Landon Real Estate, 760-406-0419 Verification Type: Confirmed-Seller Broker Secondary Verific. Source: Assessor, Data Service Sale Analysis Proposed Use Desc.: 2 Single family residences Entitlement @ T.O.S.: No Improvement and Site Data 0153-372-02, 03, 04, 05, 08 Legal/Tax/Parcel ID: 1.70/1.70 Acres(Usable/Gross): 74,052/74,052 Land-SF(Usable/Gross): Usable/Gross Ratio: 1.00 Shape: Rectangular Corner Lot: No Zoning Code: RS Zoning Desc.: Residential Suburban Flood Plain: Yes Flood Zone: X500 Source of Land Info.: Public Records Comments This listing broker indicated the sale consisted of five parcels of land. He stated the property was unentitled at the time of sale and the buyer planned to construct two single-family residences on the property. He also said the property is next to the flood control bank, with residential surroundings on all other sides. SEC Glendenning Way   Packet Pg. 171 Land Sale Profile Sale No. 2 Location & Property Identification 425 Arrowhead Road Property Name: Sub-Property Type:Residential 425 Arrowhead Rd. Address: San Bernardino, CA 92404 City/State/Zip: San Bernardino County: Suburban Market Orientation: IRR Event ID: 2891398 Sale Information $425,000 Sale Price: $425,000 Effective Sale Price: 03/31/2022 Sale Date: Sale Status: Closed $/Acre(Gross): $126,488 $/Land SF(Gross): $2.90 $/Acre(Usable): $126,488 $/Land SF(Usable): $2.90 $141,667 /Approved Lot$/Unit: Grantor/Seller: Donald Bradford Henderson Grantee/Buyer: Empire TA Corporation Assets Sold: Real estate only Property Rights: Fee Simple % of Interest Conveyed: 100.00 Financing: Cash to seller Document Type: Deed Recording No.: 122824 Verified By: Jerardo Arciniega, MAI Verification Date: 08/11/2022 Confirmation Source: Robert Lakes, Pacific Rim Realty, 951-452-3377 Verification Type: Confirmed-Seller Broker Secondary Verific. Source: Assessor, Deed Improvement and Site Data 0270-093-23 Legal/Tax/Parcel ID: 3.36/3.36 Acres(Usable/Gross): 146,361/146,361 Land-SF(Usable/Gross): Usable/Gross Ratio: 1.00 No. of Units (Potential): 3 Shape: Other Corner Lot: No Zoning Code: RE Zoning Desc.: Residential Estate Flood Plain: Yes Flood Zone Designation: A Source of Land Info.: Public Records Comments The listing broker indicated the property had been legally subdivided into three lots and was ready to be built. As a result, the property was entitled at the time of sale. We also confirmed the sale with the buyer's broker, Meljorie Castelo. She confirmed the property had been subdivided into three lots and three residences could be constructed on the property. However she stated the buyer purchased the property for truck parking, but may eventually construct residences on the property. 425 Arrowhead Road   Packet Pg. 172 Land Sale Profile Sale No. 3 Location & Property Identification Harrison Canyon Rd Property Name: Sub-Property Type:Residential Harrison Canyon Rd. Address: San Bernardino, CA 92404 City/State/Zip: San Bernardino County: Suburban Market Orientation: IRR Event ID: 2891495 Sale Information $100,000 Sale Price: $100,000 Effective Sale Price: 03/07/2022 Sale Date: Sale Status: Closed $/Acre(Gross): $81,301 $/Land SF(Gross): $1.87 $/Acre(Usable): $81,301 $/Land SF(Usable): $1.87 Grantor/Seller: Robert C Clark Jr Grantee/Buyer: Mike Quintero Assets Sold: Real estate only Property Rights: Fee Simple % of Interest Conveyed: 100.00 Financing: Cash to seller Verified By: Jerardo Arciniega, MAI Verification Date: 08/11/2022 Confirmation Source: Eileen Valenti, Coldwell Banker, 951-675-6769 Verification Type: Confirmed-Seller Broker Secondary Verific. Source: Assessor, Data Service Improvement and Site Data 0270-143-27 Legal/Tax/Parcel ID: 1.23/1.23 Acres(Usable/Gross): 53,578/53,578 Land-SF(Usable/Gross): Usable/Gross Ratio: 1.00 Corner Lot: No Zoning Code: RS Zoning Desc.: Residential Suburban Flood Plain: Yes Flood Zone Designation: X Source of Land Info.: Public Records Comments The listing broker indicated the property was unentitled at the time of sale. She stated she did not represent the buyer but believes he purchased the property to construct a single-family residence. She said the property included views of the area to the south. The property is located on a canyon with single-family residential surroundings. Harrison Canyon Rd   Packet Pg. 173 Land Sale Profile Sale No. 4 Location & Property Identification 890 1/2 East Marshall Blvd Property Name: Sub-Property Type:Residential 890 1/2 E. Marshall Blvd. Address: San Bernardino, CA 92404 City/State/Zip: San Bernardino County: Suburban Market Orientation: IRR Event ID: 2891515 Sale Information $35,000 Sale Price: $35,000 Effective Sale Price: 08/30/2021 Sale Date: Sale Status: Closed $/Acre(Gross): $58,636 $/Land SF(Gross): $1.35 $/Acre(Usable): $58,636 $/Land SF(Usable): $1.35 $35,000 /Potential Unit$/Unit: Grantor/Seller: Katherine Elaine Machoskie Grantee/Buyer: Luis R Venegas Assets Sold: Real estate only Property Rights: Fee Simple % of Interest Conveyed: 100.00 Financing: Cash to seller Verified By: Jerardo Arciniega, MAI Verification Date: 08/15/2022 Confirmation Source: Katie Machoski, Compass, 949-355-9722 Verification Type: Confirmed-Seller Broker Secondary Verific. Source: Assessor, Data Service Improvement and Site Data 0153-391-01 Legal/Tax/Parcel ID: 0.60/0.60 Acres(Usable/Gross): 26,000/26,000 Land-SF(Usable/Gross): Usable/Gross Ratio: 1.00 No. of Units (Potential): 1 Shape: Rectangular Topography: Level Corner Lot: No Zoning Code: RE Zoning Desc.: Residential Estate Flood Plain: Yes Flood Zone: X500 Source of Land Info.: Public Records Comments The listing broker was one of the owner's of the property. She indicated the property did not have legal access and that an easement would need to be granted over an adjacent single family residence. Her parents owned the residence to the south and would not grant one. Although it has a Marshall Boulevard street address, it does not have frontage on Marshall Boulevard. However, the buyer of this property also purchased an adjacent residence. The listing broker stated the sale price for this property considered the fact that it did not have legal access. The property is adjacent to the flood control area. The surroundings to the north, west and south primarily consist of single-family residences and vacant sites. 890 1/2 East Marshall Blvd   Packet Pg. 174 1 Appraisal Report Prepared on APN: 0153-161-07, San Bernardino, California (92404) Prepared for City of San Bernardino Municipal Water Department Effective Date of Value (Date of Inspection) January 26, 2022 Prepared by Steven R. Smith, MSREA, MAI, SRA and Thomas C. Wood 800 Community College Drive #114 San Jacinto, CA 92583 http://srsrea.com steves@srsrea.com 909-856-6841 0153-161-07   Packet Pg. 175 2 Steven R. Smith, MSREA, MAI, SRA • Real Estate Consultants • Market Studies • Risk Analysis • Appraisals • 800 Community College Drive #114, San Jacinto, CA 92583 909-856-6841, steves@srsrea.com January 28, 2022 Purpose: The purpose of the appraisal is to formulate and express our supportable opinion of the property value of the subject property, as of the effective date of value. Intended Use/Client and Intended Users: The intended use of this appraisal report is to provide asset value to our clients for the purpose of a land exchange transaction, as it relates to the subject property. Our client, the intended user of this report, is the City of San Bernardino Municipal Water Department. This report may not be used for any other purpose than expressed above, nor by any other party, than to whom it is addressed, and the appraisers specifically disclaim any liability to such unauthorized third parties. Scope of Work: The scope of work included a full inspection of the subject property, the neighborhood and environs, the local market area, the IMRMLS MLS, Realist, CoStar Comps, LoopNet and NDC Data, for market data. Property Rights Appraised: The Fee Simple Estate in the subject property is being appraised. Effective Date of Value: January 26, 2021 (date of inspection) Market Value Conclusion: Indicated Fee Simple Estate Value of APN 0153-161-07: $75,000 (rounded) Respectfully, _____________________________ _________________________ Steven R. Smith, MSREA, MAI, SRA, Thomas C. Wood AG 2123, expires 7/15/23 AR 3004032, expires 8/16/22   Packet Pg. 176 3 Table of Contents THE INTRODUCTION ............................................................................................................................................. 4 THE LOCATION ...................................................................................................................................................... 4 PROPERTY INFORMATION ..................................................................................................................................... 6 MARKET ANALYSIS / HIGHEST AND BEST USE CONCLUSION ................................................................................. 10 VALUATION ANALYSIS ......................................................................................................................................... 10 APPRAISER’S CERTIFICATIONS .............................................................................................................................. 15 ASSUMPTIONS AND LIMITING CONDITIONS ......................................................................................................... 16 ADDENDUM ......................................................................................................................................................... 17 APPRAISER QUALIFICATIONS ............................................................................................................................... 20   Packet Pg. 177 4 THE INTRODUCTION CURRENT OWNERSHIP/PROPERTY HISTORY According to our review of public records, title to the subject parcel is currently vested in the City of San Bernardino. Public records indicate that the subject parcel has not had a full market transfer during the past five years and our review of LoopNet indicates that it is not currently listed for sale. MARKET AND EXPOSURE TIME Sales of similar type properties were analyzed and had a wide range of exposure periods. According to knowledgeable professionals, the marketing time for properties like the subject varies considerably. Based on our research, we believe an exposure and marketing time of six to twelve months for the subject property, if properly priced, is considered reasonable and appropriate. HYPOTHETICAL CONDITIONS/EXTRAORDINARY ASSUMPTIONS No hypothetical conditions or extra ordinary assumptions have been utilized for this report. SUBJECT OCCUPANCY Subject is vacant land. THE LOCATION San Bernardino County/Inland Empire The appraised property is located in the southwestern portion of San Bernardino County and the western portion of the region known as the “Inland Empire," one of the fastest growing regions in the State of California. From 2010-2020, the United States Census Bureau reports that the two-county area of the Inland Empire (Riverside-San Bernardino) added 374,988 people to reach 4,599,839 up 8.9%. The Inland Empire forms the largest Metropolitan Statistical Area (MSA) in the nation with over 27,308 square miles and its population ranks the Inland Empire as the 13th most populous MSA in the United States, as of 2020. Although the region's large industries had been affected by the Great Recession (2006-2011), the Inland Empire is projected to remain California's fastest-growing region for some time to come. Inexpensive land prices (compared to Los Angeles and Orange Counties), a large supply of vacant land, and a transport network where many highways and railroads intersect have made the Inland Empire a major shipping hub. Some of the nation's largest manufacturing companies have chosen the Inland Empire for their distribution facilities including Toyota Motor Corporation's North American Parts and Logistics Distribution (NAPLD) center in Ontario and APL Logistics in Rancho Cucamonga. More than 80 percent of the state's imported cargo is shipped through the Los Angeles/Inland Empire Corridor.   Packet Pg. 178 5 The City of San Bernardino The subject property is located in the northeastern portion of the City of San Bernardino, in the 7th Council Ward District. San Bernardino is strategically located at the hub of an extensive transportation network and is within short commuting distances of major employment centers in Southern California. Several major transportation systems pass through the City, including three major freeways – the San Bernardino (I-10) Freeway, the Riverside (I-215) Freeway and the Foothill (210) Freeway. San Bernardino is bordered by the cities of Colton and Loma Linda on the south; Redlands and Highland on the east; the San Bernardino National Forest on the north; and the City of Rialto on the west. The City's location is well positioned as an intermodal logistics hub. The City hosts the Burlington Northern and Santa Fe (BNSF) Railway's Intermodal freight transport yard, the Yellow Freight Systems' cross- docking trucking center, and Pacific Motor Trucking. Large warehouses for Kohl's, Mattel, Pep Boys, and Stater Bros. have been developed near the San Bernardino International Airport (former Norton AFB). The City’s financial health has been improving in recent years, recovering from a 2012 bankruptcy. According to the City’s 2019 Comprehensive Annual Financial Report, there has been a notable increase in taxable value of property within the City, a clear reflection of improvements in the local economy. Specifically, the City of San Bernardino experienced a net taxable value increase of 9.5% for the 2019- property tax roll, which was a greater increase than the 6.5% growth expected countywide.   Packet Pg. 179 6 Subject Neighborhood The subject’s neighborhood consists primarily of residential zoning and includes some flood control, public recreation, public facilities, and commercial zoning, as well. The neighborhood may be described as Waterman Avenue (CA 18) to the west, 40th Street to the north, Del Rosa Avenue to the east, and the 210 Freeway to the south. The subject property is located along the western side of a flood control pathway between Valencia Avenue to the west, Parkdale Street to the north, and Glendenning Avenue to the south. There are restaurants, retail buildings, major medical facilities, religious buildings, schools, public parks, and access to the 210 Freeway – all within 2 miles of the subject. PROPERTY INFORMATION (APN: 0153-161-07) Lot size: 79,655 SF / 1.83 Acres (irregularly shaped lot [raw land] with generally level topography) Tax Information: The subject property is in tax area 7228 but is not subject to property tax as it is owned by a government entity. Subject Zoning The subject property has (PFC) Public Flood Control zoning. Per the City’s municipal code, the purpose of the PFC zone is to provide for the continuation, maintenance, and expansion of public flood control facilities.   Packet Pg. 180 7 Zoning Map: Plat Map: Flood Zone: The subject property is located within flood zone X. Earthquake Zone: The subject property is not located on a fault line. Improvements: None. PARKDALE DRIVE   Packet Pg. 181 8 EASEMENTS Public utility and roadway easements are considered typical. No adverse conditions, easements or encroachments were observed during the inspection of either site. Identification of these items is of a legal nature and an attorney specializing in this field should be consulted for their opinion concerning these items. This report is not intended to render any opinion whatsoever regarding any adverse title conditions, easements or encroachments that may affect the subject property. Our value estimate is, however, predicated upon there being no adverse title conditions, easements or encroachments that would cause a loss in value or prohibit development and no responsibility is assumed for any such conditions or for any expertise or knowledge required to discover them. SUBJECT PHOTOS The following subject photos represent only a sampling of the photos taken during our inspection. We have retained all subject photos in our workfile, which are available upon request. Southerly view from subject’s northern (apex) end at Parkdale Drive   Packet Pg. 182 9 Southwest entry to the subject property from Glendenning Way Northerly view of subject from onsite   Packet Pg. 183 10 MARKET ANALYSIS / HIGHEST AND BEST USE CONCLUSION (See addendum for Highest and Best Use definitions) As mentioned, the subject has flood control zoning – a land use for which there is no significant active sales market. The subject is, however, located directly adjacent to a residential neighborhood along its western boundary line and there is an active market for residential land within the subject’s City of San Bernardino market. In consideration of the subject’s zoning, a market purchase of the subject property would likely be purely speculative in nature. The buyer would need to take all the required steps of petitioning the City of San Bernardino for a zoning change to residential use, which is the use adjacent directly west of the subject. Only if a zoning change were to be granted (there are no guarantees this could be achieved,) then, considering the subject’s irregular (triangular) shape, the subject could be developed with one-to-two single family residential improvements. The location, shape (triangular,) and size (1.83 acres) of the subject property combined with the time, costs, and uncertainty associated with obtaining a zoning change would likely be prohibitive and serve as a deterrent to a typical residential developer/buyer. Conclusion (As Is - Vacant) Based on the above discussions, it is our conclusion that the subject’s highest and best use, as is (vacant and available for development,) would likely be for the property to remain vacant/undeveloped and under governmental ownership. VALUATION ANALYSIS The following analysis represents only the Market Data (or Sales Comparison) approach to value. The income and cost approaches to value were considered and have been excluded due as their inclusion is not required to obtain credible results for the purpose of this report. Sales Comparison Approach There is a dearth of sales data for vacant land with flood control zoning throughout southern California and, as a result, we will utilize sales of residentially zoned land – a land use which the subject is located directly adjacent to – and apply an appropriate discount in our valuation. An investigation was undertaken to locate sales of vacant residential land properties in the subject’s market area that could be used to provide direct market indications of the subject’s value. Our survey focused primarily on the properties most comparable to the subject, including lot sizes between 1 and 5 acres (subject is 1.83 acres,) within 10 miles of the subject, that occurred within the past 2 years. Our search revealed a significant number of vacant residential land sales in the subject’s greater market area, including the 20 sales utilized as comparables in our valuation.   Packet Pg. 184 11 List of Comparables   Packet Pg. 185 12 Considering the utilized comparables’ close proximity to the subject (within 10 miles,) their sizes (range of 1 to 4.3 acres,) their dates of sale (within ±22 months,) and the abundance (20) of comparables utilized, we determined that individual adjustments to the comparables would not be required. Our selected comparables have a dollar per acre range of $25,686 to $85,385 with an average of $61,820. As mentioned, the subject’s flood control zoning is a detriment to its developability and marketability and, thus a discount would be appropriate. In this regard, it is our opinion that the subject’s market value would most likely fall below the average of the data set, somewhere between $30,000 and $50,000 dollars per acre. As such, we have selected a rounded $40,000 per acre for the subject which indicates a value of $73,200 for the subject’s 1.83 acres. We conclude that the market value of the subject’s fee simple estate, as of 1/26/2022 is: SEVENTY-FIVE THOUSAND DOLLARS $75,000 (rounded) Map of Comparables   Packet Pg. 186 13   Packet Pg. 187 14   Packet Pg. 188 15 APPRAISER’S CERTIFICATIONS We do hereby certify that, except as otherwise noted in this report: We have made a personal inspection of the properties that are the subject of this report. We have no past, present or prospective interest or bias in the properties that are the subject of this report and no personal interest or bias with respect to the parties involved. To the best of our knowledge and belief, the statements of fact contained in this report, upon which the analysis, opinions, and conclusions expressed herein are based, are true and correct. The analysis, opinions, and conclusions contained in this report are limited only by the reported assumptions and limiting conditions imposed by the terms of our assignment or by the undersigned and are our personal, impartial, and unbiased professional analysis, opinions, and conclusions. The reported analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice and in conformity conforms to the requirements of the code of professional ethics and standards of professional appraisal practice of the Appraisal Institute. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. The Appraisal Institute has a voluntary program of continuing education requirements. Steven R. Smith is certified through 2022 with his education requirement. In accordance with the Competency Provision of the Uniform Standards of Professional Appraisal Practice (USPAP), We have verified that our knowledge and experience is sufficient to allow us to competently complete this appraisal unless stated otherwise within this report. The appraisers further certify and agree that: Our compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. Our firm has not appraised the subject properties within the last three years. Steven R. Smith, MSREA, MAI, SRA AG 2123, expires 7/15/23 Thomas C. Wood AR 3004032, expires 8/16/22   Packet Pg. 189 16 ASSUMPTIONS AND LIMITING CONDITIONS This appraisal is subject to the following assumptions and limiting conditions: No responsibility is assumed for matters legal in character or nature. No opinion is rendered as to title, which is assumed to be good and marketable. All existing liens, encumbrances, and assessments have been disregarded, unless otherwise noted, and the property is appraised as though free and clear, having responsible ownership and competent management. We have examined the property described herein exclusively for the purposes of identification and description of the real property. The objective of our data collection is to develop an opinion of the highest and best use of the subject property and make meaningful comparisons in the valuation of the property. The appraiser's observations and reporting of the subject improvements are for the appraisal process and valuation purposes only and should not be considered as a warranty of any component of the property. This appraisal assumes (unless otherwise specifically stated) that the subject is structurally sound, and all components are in working condition. We will not be required to give testimony or appear in court because of having made an appraisal of the property in question, unless specific arrangements to do so have been made in advance, or as otherwise required by law. We have noted in this appraisal report any significant adverse conditions (such as needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) discovered during the data collection process in performing the appraisal. Unless otherwise stated in this appraisal report, we have no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of the property (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) that would make the property less valuable, and have assumed that there are no such conditions and make no guarantees or warranties, express or implied. We will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental hazards, this appraisal report must not be considered as an environmental assessment of the property. We obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from reliable public and/or private sources that we believe to be true and correct. We will not disclose the contents of this appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice, and/or applicable federal, state or local laws. The Client is the party or parties who engage an appraiser (by employment contract) in a specific assignment. A party receiving a copy of this report from the client does not, as a consequence, become a party to the appraiser-client relationship. Any person who receives a copy of this appraisal report as a consequence of disclosure requirements that apply to an appraiser's client, does not become an intended user of this report unless the client specifically identified them at the time of the assignment. The appraiser's written consent and approval must be obtained before this appraisal report can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media.   Packet Pg. 190 17 ADDENDUM Definition of Market Value: In accordance with USPAP 2020-2021, Market Value is defined as a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the value definition that is identified by the appraiser as applicable in an appraisal. Market Value is further defined by agencies that regulate federally insured financial institutions in the United States as follows: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised and each acting in what they consider their best interests; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in US dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales commissions granted by anyone associated with the sale. Definition of As Is Market Value: "The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date." (Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015); also, Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77471). Highest and Best Use Definitions: Highest and best use is defined as: “The reasonably, probable legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility and maximum productivity.” The above definition of the “Highest and Best Use” is in reference to land that is unimproved. In cases of improved land, a determination of the contributory value of the improvements to the land must be made. The improvements found on a site may be of inappropriate use but will usually continue until the land value in its highest and best use exceeds the total value of the property in its existing use. The subject property is vacant and, therefore, its highest and best use will be solely analyzed as if unimproved and available for development. It should be noted that a highest and best use determination represents an appraiser's opinion based on their judgment and the application of several forms of analyses. Like value, it is not a fact that can be found. The highest and best use of land as though vacant and property as improved must meet four basic tests. These tests consist of the following (see addendum for supportive definitions):   Packet Pg. 191 18 1. Is the use legally permissible or reasonably possible? 2. Is the use physically possible on the site? 3. Is the use economically and financially feasible under proposed and projected market conditions? 4. Is the use estimated to be the most productive among the alternatives that are legally permissible, physically possible, and economically feasible? Highest and Best Use - As If Vacant Highest and Best Use of the site as vacant assumes that a parcel of land is vacant or could be vacant by demolishing the improvements. Given this assumption, this analysis determines the size, quality, and function that would provide the highest return to the land. The four criteria of the Highest and Best Use (see above) provide a basis for analysis. To form an opinion as to the Highest and Best Use as if vacant, we considered the physical attributes of the subject property, its zoning, location and known governmental influences, and the uses of surrounding properties. An in-depth feasibility analysis on the possible alternative uses of the site is beyond the scope of this appraisal assignment. However, in analyzing the subject property, we have investigated the regional, city, and neighborhood characteristics, as well as overall market conditions. Details regarding each category are presented in respective sections of this appraisal report. Highest and Best Use – As Improved The highest and best use of an improved property at a given time means that use of the land, which produces the most benefits and, therefore, the highest improved property value. The “use” in the case of improved property refers to the type of use, as well as how this use is to be exercised in the future. In determining the highest and best use of the property as improved, three use potentials exist: 1. the present improvements are demolished, and the land is used for another purpose; 2. the present improvements are retained without substantial physical or operational changes; 3. the present improvements are retained but with significant changes in the physical property (i.e., remodel/addition) or its management. Supportive Definitions for Highest and Best Use Analysis: Legally Permissible Legal permissibility depends on public restrictions such as zoning, building codes, as well as the private or contractual restrictions found in deeds and long-term leases. Current information regarding private restrictions was not provided in this assignment. However, there appears to be no deed or easement restrictions on the property that could affect development. A restriction or long-term ground lease does not encumber the land. Therefore, legal restrictions as they apply to the subject property are primarily the public restrictions of zoning. An industrial development would be considered a legally allowed use and consistent with those of the surrounding area.   Packet Pg. 192 19 Physically Possible The size, shape, terrain, soil conditions, accessibility, and availability of utilities for a parcel of land affect its utility and adaptability. The physical characteristics of the subject site appear to be adequate in terms of shape, size, topography, available utilities and accessibility. Although the exact soil composition is unknown, it appears that the soil is also adequate to support building improvements. Therefore, it appears that the physical characteristics would allow for the legally permissible uses. Financially Feasible and Maximally Productive According to the Real Estate Terminology Handbook, a real estate project is feasible when the analysis indicates that there is a likelihood of satisfying the explicit objectives and when a selected course of action is tested in the context of specific constraints and limited resources. The feasibility of a real estate project is normally related to its economic potential.   Packet Pg. 193 20 APPRAISER QUALIFICATIONS STEVEN R. SMITH, MSREA, MAI, SRA, AG 2123 MS IN REAL ESTATE APPRAISAL, BA IN REAL ESTATE FINANCE FULL TIME APPRAISER SINCE 1976. PART TIME UNIVERSITY INSTRUCTOR IN REAL ESTATE AT CAL STATE UNIVERSITY 2005-2015. PRIOR WORK EXPERIENCE INCLUDED LOAN SERVICING, LOAN ORIGINATION, LOAN ADMINISTRATION, TITLE INSURANCE SALES, REAL ESTATE SALE, MORTGAGE LENDING, AND REAL ESTATE SALES MANAGEMENT. APPRAISAL EXPERIENCE INCLUDES PERFORMING APPRAISALS AND MARKET STUDIES ON EXISTING, PROPOSED AND DISTRESSED PROPERTIES, NON-PERFORMING OR DESTABILIZED PROJECT. COURT TESTIMONY EXPERIENCE INCLUDES A RANGE OF CIVIL AND CRIMINAL CASES, PROFESSIONAL LIABILITY CASES, MORTGAGE FRAUD AND REAL ESTATE FRAUD CASES; AS BOTH AN EXPERT WITNESS OR AS A REBUTTAL WITNESS. DEPOSITION TESTIMONY HAS ALSO INCLUDED IRS AND EMINENT DOMAIN CASES. NO COURT TESTIMONY HAS BEEN PROVIDED IN EITHER OF THESE TYPES OF CASES AS EVERYONE HAS SETTLED. SEMINARS CREATED AND DELIVERED INCLUDE: MORTGAGE FRAUD AND THE APPRAISERS ROLE- AI-2005, BUILDING TRANSFERABLE SKILL-SETS, AI – 2005, PREDATOR LENDING, CLIENT PRESSURES & APPRAISAL FRAUD, 2004, MORTGAGE FRAUD, CASES & CONSEQUENCES, 2002, REAL ESTATE FRAUD, APPRAISERS LIABILITIES & RESPONSIBILITIES, 2000, REAL ESTATE FRAUD & THE APPRAISERS ROLE, 2000, APPRAISAL REVIEW- SREA - 1989. APPRAISER LIABILITY SEMINAR- SREA - 1988. CAL LEAGUE OF SAVINGS INSTITUTIONS - APPRAISAL QUALITY CONTROL - 1988. RESIDENTIAL APPRAISAL SEMINAR - AIREA - 1987. BOSTON SAFE GUIDELINES - 1985-1988. MORTGAGE BANKERS OF AMERICA-APPRAISAL REVIEW - 1984-86. NARAMU-APPRAISAL REVIEW & FRAUD PREVENTION - 1984-1985. UNIFORM APPRAISAL GUIDELINES - 1984-88. 99 POINT APPRAISAL REVIEW WORKSHOP - 1984-1986. EXPERIENCE CREDIT WORKSHOP-USPAP COMPLIANCE, APPRAISAL INSTITUTE 1991. USPAP COMPLIANCE, APMW, 1991. ESTATE AND LUXURY HOME APPRAISAL REVIEW – APPRAISAL INSTITUTE - 1997. SPECIALTIES INCLUDE: LUXURY HOMES, AND FORENSIC APPRAISAL REVIEW CONTACT: 909-856-6841, WEB PAGE: HTTP://SRSREA.COM, EMAIL: steve@srsrea.com   Packet Pg. 194 21 THOMAS C. WOOD, AR 3004032 FULL TIME APPRAISER SINCE 2016, PROVIDING COMMERCIAL AND RESIDENTIAL PROPERTY VALUATION SERVICES IN LOS ANGELES AND ORANGE COUNTIES AND THE INLAND EMPIRE AREA OF THE SOUTHERN CALIFORNIA REGION. MY EXPERIENCE HAS A FOCUS ON COMMERCIAL PROPERTIES, EMINENT DOMAIN, AND EASEMENT VALUATION. EDUCATION: MCKISSOCK – NOVEMBER 2020 THRU APRIL 2021 GENERAL APPRAISER INCOME APPROACH – 60 HOURS GENERAL APPRAISER SITE VALUATION AND COST APPROACH – 30 HOURS GENERAL APPRAISER MARKET ANALYSIS HIGHEST AND BEST USE – 30 HOURS GENERAL APPRAISER REPORT WRITING AND CASE STUDIES – 30 HOURS WESTERN GOVERNERS UNIVERSITY - JULY 2020 BACHELOR OF SCIENCE BUSINESS MANAGEMENT MCKISSOCK – FEBRUARY/MARCH 2020 2020-2021 USPAP UPDATE COURSE – 7 HOURS ADVANCED RESIDENTIAL APPLICATIONS AND CASE STUDIES – 15 HOURS LAWS AND REGULATIONS FOR CALIFORNIA APPRAISERS – 4 HOURS STATISTICS , MODELING, AND FINANCE – 15 HOURS SOUTH TEXAS COLLEGE - AUGUST 2019 ASSOCIATE OF ARTS IN BUSINESS ADMINISTRATION APPRAISAL INSTITUTE - FEBRUARY 2017- FEBRUARY 2018 BASIC APPRAISAL PRINCIPALS – 30 HOURS BASIC APPRAISAL PROCEDURES – 30 HOURS GENERAL APPRAISER SALES COMPARISON APPROACH – 30 HOURS REAL ESTATE APPRAISAL TRAINEE/SUPERVISOR – 30 HOURS ONLINE BUSINESS PRACTICES AND ETHICS – 5 HOURS 2018-2019 USPAP UPDATE COURSE – 7 HOURS ALLIED SCHOOLS - JUNE 2016 REAL ESTATE APPRAISAL PRINCIPALS AND PRACTICES – 60 HOURS RESIDENTIAL SALES COMPARISON AND INCOME APPROACHES – 30 HOURS RESIDENTIAL APPRAISER SITE VALUATION AND COST APPROACH – 15 HOURS RESIDENTIAL APPRAISER MARKET ANALYSIS AND HIGHEST AND BEST USE – 15 HOURS REAL ESTATE APPRAISAL REPORT WRITING – 15 HOURS 2016-2017 USPAP UPDATE COURSE – 15 HOURS REAL ESTATE APPRAISAL TRAINEE/SUPERVISOR – 4 HOURS   Packet Pg. 195 Item # Line Item Description Quantity Unit Unit Cost Extended Cost Time (CD)1 Demo plans 1 LS 1,000.00$      1,000.00$         102 Permits 1 LS 2,000.00$      2,000.00$         53 Insurance 1 LS 10,000.00$    10,000.00$       04 Mobilization /Demobilization 1 LS 5,000.00$      5,000.00$         15 Edison LOTO 1 LS 2,500.00$      2,500.00$         56 Gas service disconnection 1LS‐$                 ‐$                   57 Underground gas demo 1 LS 15,000.00$    15,000.00$       58 Telephone and internet 1 LS 2,500.00$      2,500.00$         19 Water demo 1LS‐$                 ‐$                   110 Hazmat testing 25 EA 560.00$         14,000.00$       311 Hazmat mitigation 1 LS 60,000.00$    60,000.00$       1012 Hazmat hauling/disposal 1 LS 20,000.00$    20,000.00$       213 Interior removal/demo 1 LS 20,000.00$    20,000.00$       114 External/shell demo 30,000 SF 7.50$              225,000.00$     1515 AC & concrete demo 60,000 SF 4.50$              270,000.00$     2016 Hauling of shell material 150 TON 60.00$            9,000.00$         517 Hauling of concrete material 500 TON 60.00$            30,000.00$       1018 Clearing vegetation/trees/shrubs 1 LS 1,500.00$      1,500.00$         2687,500.00$    101        School of Hope Demolition Estimate                                                                                                                                   January 10, 2023   Notes Related to Reduced Estimate.Current rates for transportation of large equipment This can be reduced or eliminated if performed in houseService disconnection only.  Edison is currently working on undergrounding these linesDisconnection of service at the customer valveThe cost for terminating Gas service could be free of charge if purchasing party plans to obtain Gas Connection on siteThis is for on‐site work and could be reduced if there is only one serviceWill focus on paint and asbestos testingFor full demo, this will be for preparing only with protective measuresFor full demo, this will be for hauling and fees at dump siteCurrent dump rates This hauling is very costly. If material can be buried on site, that will help reduce costs.This is based on current feesLeave access onto the site interior for demo workLeave perimeter trees in tact rather than take all from the siteThe estimate above includes all probable costs, inclusive of the 3 most common phases, of a project from it's conception through the end of demolition. With the greatest costs being in the demolition and hauling of material from on site concrete, a limited plan can be negotiated in an effort to save money where necessary.  Some activities are expected to overlap on the schedule; therefore a 120 day contract for construction will be sufficient. Unit Costs Updated 12/12/2022:The costs here fall in‐line with the latest information provided on the demolition. Some services can be performed in‐house to provide a cost savings. Other services can be eliminated or reduced due to the current status of the property, and what may not be necessary for the purchasing party. &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;196 1 1 9 3 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:March 15, 2023 To:Honorable Mayor and City Council Members From:Charles E. McNeely, Interim City Manager; Nathan Freeman, Agency Director of Community, Housing, and Economic Development Department:Community, Housing, & Economic Development (CED) Subject:Adoption of Ordinance No. MC-1613 (Annexation No. 31) (Ward 3) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Ordinance No. MC-1613 amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2023-2024 to pay the annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services). 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 March 1, 2023, Ordinance No. MC-1613 was introduced for first reading to 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. 197 1 1 9 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 It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Ordinance No. MC-1613 amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2023-2024 to pay the annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services). Attachments Attachment 1 – Ordinance No. MC-1613 (Ordinance Levying Special Taxes) Attachment 2 – Exhibit A – Description of Services Attachment 3 – Exhibit B – Description of Territory Attachment 4 – Project Location Map Ward: Third Ward Synopsis of Previous Council Actions: June 5, 2019 Mayor and City Council adopted Resolution No. 2019-81, a Resolution of Intention to form Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello- Roos Community Facilities Act of 1982.” July 17, 2019 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. 198 1 1 9 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. January 18, 2023 Mayor and City Council adopted Resolution No. 2023-017, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982.” March 1, 2023 Mayor and City Council adopted Resolution No. 2023-40 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. 31), and adopted Resolution No. 2023-41 declaring election results for Community Facilities District No. 2019-1 (Annexation No. 31); and introduced Ordinance No. MC-1613 amending Ordinance No. MC-1522.   Packet Pg. 199 Ordinance No. MC-1613 1 2 1 4 0 ORDINANCE NO. MC-1613 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING ORDINANCE NO. MC-1522 AND LEVYING SPECIAL TAXES TO BE COLLECTED DURING FISCAL YEAR 2023-2024 TO PAY THE ANNUAL COSTS OF THE MAINTENANCE AND SERVICING OF LANDSCAPING, LIGHTING, WATER QUALITY IMPROVEMENTS, GRAFFITI, STREETS, STREET SWEEPING, PARKS AND TRAIL MAINTENANCE, A RESERVE FUND FOR CAPITAL REPLACEMENT, AND ADMINISTRATIVE EXPENSES WITH RESPECT TO CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) WHEREAS, the Mayor and City Council (the "City Council") of the City of San Bernardino (the "City") has heretofore adopted Resolution No. 2019-81, stating that a community facilities district to be known as "City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services), County of San Bernardino, State of California" (the "Community Facilities District"), is proposed to be established under the provisions of Chapter 2,5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982" (the "Act"), and fixing the time and place for a public hearing on the formation of the Community Facilities District; and WHEREAS, notice was published and mailed to the owners of the property in the Community Facilities District as required by law relative to the intention of the City Council to establish the Community Facilities District and the levy of the special taxes therein to provide certain services, and of the time and place of said public hearing; and WHEREAS, on March 1, 2023, at the time and place specified in said published and mailed notice, the City Council opened and held a public hearing as required by law relative to the formation of the Community Facilities District, the levy of the special taxes therein and the provision of services by the Community Facilities District; and WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District, the levy of the special taxes and the provision of services therein were heard, and a full and fair hearing was held; and WHEREAS, subsequent to said hearing, the City Council adopted resolutions entitled "Resolution of the City Council of the City of San Bernardino Establishing Calling An Election for the Purpose of Submitting the Question of the Levy of the Proposed Special Tax to the Qualified Electors of the Proposed Community Facilities District; Authorizing the Levy of Special Taxes; and Establishing the Appropriations Limit for the Proposed Community Facilities District" (the "Resolution of Formation") which resolution established the Community Facilities District, authorized the levy of a special tax within the District, and called an election within the District on   Packet Pg. 200 Ordinance No. MC-1613 2 2 1 4 0 the proposition of levying a special tax, and establishing an appropriations limit within the District; and WHEREAS, an election was held within the Community Facilities District in which the sole eligible landowner elector approved said propositions by more than the two-thirds vote required by the Act. THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1.Findings. It is necessary that the City Council of the City of San Bernardino levy special taxes pursuant to Sections 53340 of the Government Code to provide and finance the costs of certain types of services, and related costs within the Community Facilities District, including (i) the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, and park maintenance, (ii) a reserve fund for capital replacement, and (iii) administrative expenses, all as more completely described in Exhibit "A" to Resolution No. 2019-81, attached hereto and by this reference made a part hereof. SECTION 2.Levy of Special Taxes. Special taxes shall be and are hereby levied for the Fiscal Year 2023-2024, and each Fiscal Year thereafter, on all parcels of real property within the District which are subject to taxation, which are identified in Exhibit "B" attached hereto. Pursuant to said Section 53340, such special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and Lien priority in case of delinquency as is provided for ad valorem taxes. SECTION 3.Transmittal to County. The City Clerk shall immediately following adoption of this ordinance transmit a copy hereof to the Board of Supervisors and the County Auditor of the County of San Bernardino together with a request that the special taxes as levied hereby be collected on the tax bills for the parcels identified in Exhibit "B" hereto, along with the ordinary ad valorem property taxes to be levied on and collected from the owners of said parcels. SECTION 4.Authorization to Publish Ordinance. City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California. SECTION 5.Effective Date. This ordinance shall become effective thirty (30) days after its adoption. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ____ day of _______, 2023. Helen Tran, Mayor City of San Bernardino   Packet Pg. 201 Ordinance No. MC-1613 3 2 1 4 0 Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 202 Ordinance No. MC-1613 4 2 1 4 0 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Ordinance No. MC-1613, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the ____ day of ______, 2023. Ordinance No. MC-1613 was approved, passed and adopted at a regular meeting held the ____ day of ______, 2023 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of _____, 2023. Genoveva Rocha, CMC, City Clerk   Packet Pg. 203 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. 204 EXHIBIT B 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. 31 is currently comprised of one (1) parcel, located within the City boundaries. The property is identified by the following San Bernardino County Assessor's Parcel Number (APN). APN Owner Name 0142-211-29 Elliot Precision Block Co.   Packet Pg. 205 PENSYLVANIA AVERANCHO AVENAR ANG A S T RI ALT O AVE ^_ £¤66 MIL L ST 16TH ST SPRUCE ST SIERRA WAYNINTH ST CAM PUS WAY 2ND S T MAGNOLIA AVE ORANGE SHOW RD 4TH STRANCHO 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 AVEACADEMY STMT.VIEW AVECOLTON AVEREDLANDS BLVD MIL L ST§¨¦215 £¤66 CFD N O. 2019-1 (M AINTEN ANCE SERVICES)ANNEXATION NO. 31 PROJECT MAP   Packet Pg. 206 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:March 15, 2023 To:Honorable Mayor and City Council Members From:Charles E. McNeely, Interim City Manager; Barbara Whitehorn, Agency Director of Administrative Services Department:Finance Subject: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 February 2023. 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 February 16, 2023 $2,753,633.88 Monthly for February 15, 2023 $26,950.00 Total Payroll Demands: $2,780,583.88 The following check registers are being presented for approval: February 9, 2023 2022/23 (Regi ster #35)$2,910,388.87 February 13, 2023 2022/23 (Regi ster #36)$6,000.00 February 16, 2023 2022/23 (Regi ster #37)$1,660,815.42 Total commercial check demands:$4,577,204.29   Packet Pg. 207 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 February 2023. Attachments Attachment 1 Payroll Summary Report for February 2023 Attachment 2 Commercial checks & Payroll Register #35 Attachment 3 Commercial checks & Payroll Register #36 Attachment 4 Commercial checks & Payroll Register #37 Attachment 5 Commercial EFT Registers #1415-1429 Ward: All Wards Synopsis of Previous Council Actions: The following Electroni c Funds Transfer (EFT) regi sters presented for approval: January 5 to February 7, 2023 2022/23 (Regi ster #1415-1429) $ 2,346,868.50 Total commercial EFT demands:$2,346,868.50   Packet Pg. 208   Packet Pg. 209   Packet Pg. 210   Packet Pg. 211   Packet Pg. 212   Packet Pg. 213   Packet Pg. 214   Packet Pg. 215   Packet Pg. 216   Packet Pg. 217   Packet Pg. 218   Packet Pg. 219   Packet Pg. 220   Packet Pg. 221   Packet Pg. 222   Packet Pg. 223   Packet Pg. 224   Packet Pg. 225   Packet Pg. 226   Packet Pg. 227   Packet Pg. 228   Packet Pg. 229   Packet Pg. 230   Packet Pg. 231   Packet Pg. 232   Packet Pg. 233   Packet Pg. 234   Packet Pg. 235   Packet Pg. 236   Packet Pg. 237   Packet Pg. 238   Packet Pg. 239   Packet Pg. 240   Packet Pg. 241   Packet Pg. 242   Packet Pg. 243   Packet Pg. 244   Packet Pg. 245   Packet Pg. 246   Packet Pg. 247   Packet Pg. 248   Packet Pg. 249   Packet Pg. 250   Packet Pg. 251   Packet Pg. 252   Packet Pg. 253   Packet Pg. 254   Packet Pg. 255   Packet Pg. 256   Packet Pg. 257   Packet Pg. 258   Packet Pg. 259   Packet Pg. 260   Packet Pg. 261   Packet Pg. 262 7 6 9 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:March 15, 2023 To:Honorable Mayor and City Council Members From:Charles E. McNeely, Interim City Manager; Barbara Whitehorn, Agency Director of Administrative Services Department:Finance Subject:Investment Portfolio Report for January 2023 (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 January 2023. Background The City’s Statement of Investment Policy requires that a monthly Investment Portfolio Report be prepared and submitted to the Mayor and City Council. The Director of Finance will prepare, review, and present the City’s Investment Portfolio Report and confirm that the portfolio is in compliance with the City’s Investment Policy. Discussion The Investment Portfolio Report provides a synopsis of investment activity for the City’s investment portfolio for the month ended January 31, 2023. 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 Operational & 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   Packet Pg. 263 7 6 9 report. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept and file the Monthly Investment Portfolio Report for January 2023. Attachments Attachment 1 Investment Portfolio Management Summary Report January 2023 Ward: All Wards Synopsis of Previous Council Actions: N/A   Packet Pg. 264   Packet Pg. 265   Packet Pg. 266   Packet Pg. 267   Packet Pg. 268   Packet Pg. 269   Packet Pg. 270   Packet Pg. 271   Packet Pg. 272   Packet Pg. 273   Packet Pg. 274 1 1 9 8 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:March 15, 2023 To:Honorable Mayor and City Council Members From:Charles E. McNeely, Interim City Manager; Barbara Whitehorn, Agency Director of Administrative Services Department:Finance Subject:Resolution No. 2023-044 Authorizing the Recording of a Notice of Cessation of Special Tax Lien for Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino. (Sixth Ward) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, Adopt Resolution No. 2023-044 of the City Council of the City of San Bernardino, Acting in its Capacity as the Legislative Body of Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino, Authorizing the Recording of a Notice of Cessation of Special Tax Lien. Background The City Council of the City of San Bernardino, California (the “City”), previously formed 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”) and the qualified electors approved the levy of special taxes on the real property located within the CFD No. 2022-1 for the purpose of financing the provision of certain services and the acquisition and construction of certain facilities. Discussion On January 11, 2023, the City received a formal request from Warmington Highland Village Associates, L.P. (the “Property Owner”) to cause the cancelation of the special tax obligation of CFD No. 2022-1. Section 5330.5 of the Government Code allows for the cessation of special taxes by recording a notice of cessation of special tax. The Property Owner requested cancelation of the special tax obligation because the planned structure for development of the property has changed. The Property Owner is going to build out the property, rather than selling it to a secondary merchant builder.   Packet Pg. 275 1 1 9 8 With this structure, the Property Owner no longer requires a CFD in place for development. Because no bonds have been issued and no taxes collected, this cessation is appropriate under the Mello-Roos Act. It is recommended that this resolution be adopted and that a Notice of Cessation and Extinguishment of Special Tax Lien be recorded with the County Recorder for the County of San Bernardino. 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 to the City, as administrative costs related to the establishment and cessation of CFD No. 2022-1 are paid by a deposit of Warmington Residential California, Inc. (the “Developer”) pursuant to the Developer Deposit Agreement entered into on July 1, 2022 by and between the Developer and the City. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, Adopt Resolution No. 2023-044 of the City Council of the City of San Bernardino, Acting in its Capacity as the Legislative Body of Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino, Authorizing the Recording of a Notice of Cessation of Special Tax Lien. Attachments Attachment 1 – Resolution 2023-044 Attachment 2 – Notice of Cessation of Special Tax Lien Ward: Sixth Ward Synopsis of Previous Council Actions: July 20, 2022 Mayor and City Council of the City of San Bernardino, California: 1. Adopted Resolution No. 2022-141 Declaring Intention to Establish Proposed Community Facilities District No. 2022- 1(Highland/Medical) of the City of San Bernardino; 2. Adopted Resolution No. 2022-142 of the Mayor and City Council of the City of San Bernardino, California, Declaring Necessity to Incur a Bonded Indebtedness of Proposed Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino August 17, 2022 Mayor and City Council of the City of San Bernardino, California:   Packet Pg. 276 1 1 9 8 1. Adopted Resolution No. 2022-186 Amending and Supplementing the Resolution Declaring Intention to Establish Proposed Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino; and 2. Adopted Resolution No. 2022-187 of the Mayor and City Council of the City of San Bernardino, California, Amending and Supplementing the Resolution Declaring Necessity to Incur a Bonded Indebtedness of Proposed Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino October 5, 2022 Mayor and City Council of the City of San Bernardino, California: 1. Adopted Resolution No. 2022-216 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. Adopted Resolution No. 2022-217 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. Adopted Resolution No. 2022-218 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. Adopted Resolution No. 2022-219 Declaring the Results of the Consolidated Special Elections within Community Facilities District No. 20221 (Highland/Medical); and 5. Introduced, read by title only and waived 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.   Packet Pg. 277 Resolution No. 2023-044 Resolution 2023-044 March 15, 2023 Page 1 of 3 2 3 2 4 RESOLUTION NO. 2023-044 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BERNARDINO, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2022-1 (HIGHLAND/MEDICAL) OF THE CITY OF SAN BERNARDINO, AUTHORIZING THE RECORDING OF A NOTICE OF CESSATION OF SPECIAL TAX LIEN WHEREAS, the City Council (the “City Council”) of the City of San Bernardino, California (the “City”), has previously formed 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”) 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”) and the qualified electors approved the levy of special taxes on the real property located within the CFD No. 2022-1 for the purpose of financing the provision of certain services and the acquisition and construction of certain facilities; and WHEREAS, pursuant to the requirements of Section 3114.5 of the California Streets and Highways Code and Section 53328.3 of the California Government Code, the City Clerk of the City of San Bernardino (the “City Clerk”) previously caused to be recorded in the records of the County Recorder for the County of San Bernardino, a Notice of Special Tax Lien for CFD No. 2022-1 (the “Notice of Special Tax Lien”); and WHEREAS, the Notice of Special Tax Lien gave notice that the special taxes are authorized to be levied within CFD No. 2022-1 and the lien of the special taxes is a continuing lien which shall secure each annual levy of the special taxes and which shall continue in force and effect until such special tax obligation is prepaid, permanently satisfied, and cancelled in accordance with law or until the special taxes cease to be levied and a notice of cessation of special ax is recorded in accordance with Section 5330.5 of the Government Code; and WHEREAS, on January 11, 2023, the City received a formal request from Warmington Highland Village Associates, L.P. (the “Property Owner”) to cause the cancellation of the special tax obligation of CFD No. 2022-1; and WHEREAS, this City Council, acting for and on behalf of CFD No. 2022-1, desires to cause to be recorded a Notice of Cessation, pursuant to Section 53330.5 of the Act, to give notice that the obligation to pay special taxes of CFD No. 2022-1 has ceased and the lien imposed by the recordation of the Notice of Special Tax Lien for CFD No. 2022-1 has been extinguished. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1.Recitals. The above recitals are all true and correct.   Packet Pg. 278 Resolution No. 2023-044 Resolution 2023-044 March 15, 2023 Page 2 of 3 2 3 2 4 SECTION 2.Determination. It is hereby determined by this City Council that the special tax shall cease to be levied on property within CFD No. 2022-1. SECTION 3.Notice of Cessation. The City Clerk, acting for and on behalf of CFD No. 2022-1 is hereby ordered to cause a Notice of Cessation to be recorded in the office of the County Recorder of the County of San Bernardino pursuant to Section 53330.5 of the Act, as it pertains to the special tax obligation of CFD No. 2022-1. SECTION 4.Effective Date. This Resolution shall become effective immediately upon its adoption. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 15th day of March, 2023. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: ____________________ Sonia R. Carvalho, City Attorney   Packet Pg. 279 Resolution No. 2023-044 Resolution 2023-044 March 15, 2023 Page 3 of 3 2 3 2 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. 2023-044, adopted at a regular meeting held on the 15th day of March 2023 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2023. Genoveva Rocha, CMC, City Clerk   Packet Pg. 280 1 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: EXEMPT FROM FILING FEES PURSUANT TO GOVERNMENT CODE SECTION 6103 City Clerk City of San Bernardino 290 North “D” Street San Bernardino, California 92401 NOTICE OF CESSATION AND EXTINGUISHMENT OF SPECIAL TAX LIEN COMMUNITY FACILITIES DISTRICT NO. 2022-1 (HIGHLAND/MEDICAL) OF THE CITY OF SAN BERNARDINO The CITY COUNCIL OF THE CITY OF SAN BERNARDINO, acting on behalf of COMMUNITY FACILITIES DISTRICT NO. 2022-1 (HIGHLAND/MEDICAL) OF THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA (the “District”), previously conducted proceedings, held an election and authorized the levy of certain special taxes under proceedings for the formation of a community facilities district 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. NOTICE IS HEREBY GIVEN by the City Clerk of the City of San Bernardino, acting for and on behalf of the District, that the obligation to pay Special Taxes as defined in the rate and method of apportionment, as set forth in and secured by the Notice of Special Tax Lien recorded in the official records of the Recorder’s Office of the County of San Bernardino, California on October 7, 2022, as Document No. 2022-0336639 has ceased as to the parcel identified in Exhibit “A” attached hereto and incorporated herein by this reference (the “Properties”). This Notice of Cessation and Extinguishment of Special Tax lien is authorized pursuant to the provisions of Section 53330.5 of the Government Code of the State of California. Upon recordation of this Notice of Cessation and Extinguishment of Special Tax Lien, the Special Tax lien imposed on the Properties by the District is hereby extinguished.   Packet Pg. 281 2 For further particulars as to the boundaries of the District, reference is made to the boundary map of the District recorded on July 26, 2022, in Book 90 of Maps of Assessment and Community Facilities Districts, at Page 42, and as Instrument No. 2022-0258073, in the Office of the County Recorder for the County of San Bernardino, State of California. This Notice of Cessation and Extinguishment of Special Tax Lien has been executed in the City of San Bernardino, California on the date set forth below. DATED: ______, 2023. ______________________________________________ Genoveva Rocha, CMC, City Clerk   Packet Pg. 282 29728.00015\33835447.1 A-1 EXHIBIT A COMMUNITY FACILITIES DISTRICT NO. 2022-1 (HIGHLAND/MEDICAL) OF THE CITY OF SAN BERNARDINO DESCRIPTION OF PROPERTY Assessor Parcel Number Owner 0143-191-59 Warmington Highland Village Associates, L.P.   Packet Pg. 283 1 1 4 1 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:March 15, 2023 To:Honorable Mayor and City Council Members From:Miguel J Guerrero, General Manager Department:Water Subject:Receive and File San Bernardino Municipal Water Department’s Audited Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2022. Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the San Bernardino Municipal Water Department’s audited Annual Comprehensive Financial Report for water and sewer utilities for Fiscal Year ended June 30, 2022. Background Section 603(e) of the City of San Bernardino Charter requires that the Water Board provide for an “annual, independent audit of all water and wastewater accounts" and that “copies of all auditors’ reports shall be filed with the City Clerk and Council.” The audit firm of Lance, Soll & Lunghard, LLP completed the Water Department’s annual audit and produced the attached Annual Comprehensive Financial Report (ACFR) for Fiscal Year ended June 30, 2022. This report includes the financial statements, the Independent Auditor’s Report, Management’s Discussion and Analysis, as well as a statistical section containing historical information and data. The ACFR was presented to the City Water Board at its January 24, 2023, regular meeting, and it was approved unanimously. For the sixth straight year, the Water Department received the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Report for its Fiscal Year 2020/21 ACFR. The Certificate of Achievement is the highest form of recognition in governmental accounting and financial reporting, and its attainment represents a significant accomplishment for the Water Department.   Packet Pg. 284 1 1 4 1 Discussion N/A 2021-2025 Strategic Targets and Goals This resolution aligns with the adopted 2020-2025 Key Strategic Targets and Goals, specifically Target 1: Financial Stability. The information in these reports is useful to the City Water Board in making operational and financial decisions to meet the Water Department’s goals and objectives. Fiscal Impact There is no fiscal impact associated with this item. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the San Bernardino Municipal Water Department’s audited Annual Comprehensive Financial Report for Fiscal Year ended June 30, 2022. Attachments Attachment 1 - Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2022. Ward: N/A Synopsis of Previous Council Actions: N/A   Packet Pg. 285 Received 0l-18-23 SAfIAWO.r{!f General Manager TO: FROM: SUBJECT: CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT \\',\'l'ttR I]o:\lt[) s'l'.\l rtr lU,llr()l{'I' N{igucl-f . (}ucrrero, P.li., (lcncral Nlanagcr 4r-Z '<- Cynthia I\'louser, I)ircctor r>f Iiinancc PRESENTATION OF THE RESULTS OF THE FISCAL YEAR 2O2I-22 AUDIT, ANNUAL COMPREHENSIVE FINANCIAL REPORT, SINGLE AUDIT REPORT ON FEDERAL AWARDS Januan 17,2023DATE: 8,,\CK(iROUNI): On-fanuan, 21,2023,Iiyan l)omino, Partner in thc tirm of Lancc S()ll & Lunghard LLP 0,Sl), \viil prescnt and distnbute to thc \\'ater lloard thc ,\nnual Or>mprchcnsivc liinancial Rcport (r\CIrR) for thc Ciq' of San llcrnardino Nlunicipal \\'atcr l)cpartment (thc l)cpartmcnt) for the fiscal vcar cndcd -f unc 30, 2022.'I-he Dcpartmcnt entcrcd a thrcc-\'car c()ntract with l,SL in NIav of 2019 to perform thc \\'ater I)epartmcnt's annual financial audit of thc l)cpartmcnt's thrcc cntctprisc flnds, RIX, and thc l)cpartment's licdcral programs (Singlc,\udit). 'l'he ACIIR rcflccts the l)cpartmcnt's rcsults of financial ()pcrati(xts as o[.f unc 30,2022. r\n impartial opinion has been issucd from I-SL. 'I'hc \\'atcr and Scrvcr cntcrprisc furrds arc rcporting a positir-c net income aftcr capital contributi<>ns; thc Scwcr (.ollcction fund is rcportin.q a nct l()ss aftcr capital contributions. ;\ summan of the dcpartment's financcs can bc firund in thc l\Ianagcmcnt's l)iscussion and ,\nalysis section of the ,\nnual Cr>mprchcnsive liinancial ltcport, with addirional details throughout thc rcport. (;(),\LS,\ND ()Rl I :C'l'lVI iS 'l'his proposc<l.f une 30,2022,,,\(,lrll aligns with the Dcpartrncnt's Stratcgic PIan undcr'l'arget # 5: Iiiscal li.csponsibiliq'. 'l'his supp6rts key valucs that cxercisc rcsponsiblc firrancial managcment, providc rcsponsible stcwardship of public funds, and cnsurc transParcnc\I. ITISC,\l- IIUP,\C'I': 'l'here is no fiscal impact associatcd with this itcm. .\gcnda Item 5   Packet Pg. 286 MiguelJ. Guerrero Page 2 January 17,2023 Subject: PRESENTATION OF THE RESULTS OF THE FISCAL YEAR 2021-22 AUDIT, ANNUAL COMPREHENSTVE FINANCIAL REPORT, SINGLE AUDIT REPORT ON FEDERAL AWARDS RECOMME,NDATION: It is recommended that the Water Board make the following motions: . Appro-re the Annual Comprehensive Financial Report for the City of San Bernardino Municipal Water Department for the fiscal year endingJune 30,2022. o Direct staff to file the annual audit and Annual Comprehensive Financial Repot with the Mayor and City Council. Respectfully submitted, h*^" lJNr,A Cynthia Mouser Directot of Finance Attachments: o Annual Comprehensive Financial Report, Fiscal Year EndedJune 30,2022 o Single Audit o Audrt Communications Letter o Report on Internal Controls •Slideshow Presentation   Packet Pg. 287 ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF SAN BERNARDINO WATER DEPARTMENT FOR THE FISCAL YEAR ENDED JUNE 30, 2022 San Bernardino, CA A COMPONENT UNIT OF THE CITY OF SAN BERNARDINO   Packet Pg. 288 7+,63$*(,17(17,21$//</()7%/$1.   Packet Pg. 289   &,7<2)6$1%(51$5',12 081,&,3$/:$7(5'(3$570(17  $&20321(1781,72)7+(&,7<2)6$1%(51$5',12  $118$/&2035(+(16,9(),1$1&,$/5(3257  )25),6&$/<($5(1'('-81(                              35(3$5('%<  7+(),1$1&($1'$&&2817,1*',9,6,21   Packet Pg. 290 7+,63$*(,17(17,21$//</()7%/$1.   Packet Pg. 291   &,7<2)6$1%(51$5',12 081,&,3$/:$7(5'(3$570(17  $118$/&2035(+(16,9(),1$1&,$/5(3257  )25),6&$/<($5(1'('-81(  7$%/(2)&217(176  3DJH V   ,1752'8&725<6(&7,21  /HWWHURI7UDQVPLWWDOL *)2$&HUWLILFDWHRI$FKLHYHPHQWYLLL 2UJDQL]DWLRQDO&KDUWL[ /LVWRI(OHFWHGDQG$SSRLQWHG2IILFLDOV[  ),1$1&,$/6(&7,21  ,QGHSHQGHQW$XGLWRUV¶5HSRUW 0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLV %DVLF)LQDQFLDO6WDWHPHQWV 6WDWHPHQWRI1HW3RVLWLRQ 6WDWHPHQWRI5HYHQXHV([SHQVHVDQG&KDQJHVLQ1HW3RVLWLRQ 6WDWHPHQWRI&DVK)ORZV 1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV  5(48,5('6833/(0(17$5<,1)250$7,21  6FKHGXOHRI3URSRUWLRQDWH6KDUHRIWKH1HW3HQVLRQ/LDELOLW\ 6FKHGXOHRI3HQVLRQ3ODQ&RQWULEXWLRQV 6FKHGXOHRI&KDQJHVLQ1HW23(%/LDELOLW\ $VVHW DQG5HODWHG5DWLRV 6FKHGXOHRI23(%3ODQ&RQWULEXWLRQV 6FKHGXOHRI23(%3ODQ,QYHVWPHQW5HWXUQV  67$7,67,&$/6(&7,21  &KDQJHVLQ1HW3RVLWLRQ±&RPELQHG)XQGV &KDQJHVLQ1HW3RVLWLRQ±:DWHU)XQGV &KDQJHVLQ1HW3RVLWLRQ±6HZHU)XQG &KDQJHVLQ1HW3RVLWLRQ±6HZHU&ROOHFWLRQ)XQG 1HW3RVLWLRQE\&RPSRQHQW±&RPELQHG 1HW3RVLWLRQE\&RPSRQHQW±:DWHU)XQG 1HW3RVLWLRQE\&RPSRQHQW±6HZHU)XQG 1HW3RVLWLRQE\&RPSRQHQW±6HZHU&ROOHFWLRQ)XQG :DWHU)XQG5HYHQXHE\7\SH 6HZHU)XQG5HYHQXHE\7\SH 6HZHU&ROOHFWLRQ)XQG5HYHQXHE\7\SH :DWHU)XQG([SHQVHVE\7\SH 6HZHU)XQG([SHQVHVE\7\SH 6HZHU&ROOHFWLRQ)XQG([SHQVHE\7\SH :DWHU)XQG'HEW6HUYLFH&RYHUDJH 6HZHU)XQG'HEW6HUYLFH&RYHUDJH 5DWLRVRI2XWVWDQGLQJ'HEWE\7\SH 'HPRJUDSKLF6WDWLVWLFV 0DMRU(PSOR\HUV   Packet Pg. 292   &,7<2)6$1%(51$5',12 081,&,3$/:$7(5'(3$570(17  $118$/&2035(+(16,9(),1$1&,$/5(3257  )25),6&$/<($5(1'('-81(  7$%/(2)&217(176  3DJH V   67$7,67,&$/6(&7,21 &217,18('   $XWKRUL]HG3RVLWLRQV+LVWRU\ :DWHU5DWHV0LQLPXP0RQWKO\&KDUJH :DWHU&RQQHFWLRQVDQG5HYHQXHVE\8VHU7\SHV :DWHU5DWHV±(OHYDWLRQ&KDUJHVSHU+&) 7RS7HQ:DWHU&RQVXPHUV 6HZHU7UHDWPHQW5DWH+LVWRU\ 6HZHU7UHDWPHQW&RQQHFWLRQVDQG5HYHQXHE\8VHU7\SH 7RS7HQ6HZDJH7UHDWPHQW&XVWRPHUV 6HZHU&ROOHFWLRQ5DWH+LVWRU\ 6HZHU&ROOHFWLRQ&RQQHFWLRQVDQG5HYHQXHE\8VHU7\SH 7RS7HQ6HZHU&ROOHFWLRQ&XVWRPHUV   Packet Pg. 293 6RXWK³(´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“Trusted, Quality Service since 1905” -DQXDU\  :DWHU%RDUG&RPPLVVLRQHUV 6DQ%HUQDUGLQR0XQLFLSDO:DWHU'HSDUWPHQW ,QWURGXFWLRQ  6WDWHODZUHTXLUHVWKDWHYHU\JHQHUDOSXUSRVHJRYHUQPHQWSXEOLVKDFRPSOHWHVHWRIDXGLWHGILQDQFLDOVWDWHPHQWV ZLWKLQVL[PRQWKVRIWKHFORVHRIHDFKILVFDO\HDU7KLVUHSRUWLVSXEOLVKHGWRIXOILOOWKDWUHTXLUHPHQWIRUWKH 6DQ%HUQDUGLQR0XQLFLSDO:DWHU'HSDUWPHQW ³'HSDUWPHQW´ IRUWKHILVFDO\HDUHQGHG-XQH  0DQDJHPHQWDVVXPHVIXOOUHVSRQVLELOLW\IRUWKHFRPSOHWHQHVVDQGUHOLDELOLW\RIWKHLQIRUPDWLRQFRQWDLQHGLQWKLV UHSRUWEDVHGXSRQDFRPSUHKHQVLYHIUDPHZRUNRILQWHUQDOFRQWUROWKDWLWKDVHVWDEOLVKHGIRUWKLVSXUSRVH %HFDXVH WKH FRVW RI LQWHUQDO FRQWURO VKRXOG QRW H[FHHG DQWLFLSDWHG EHQHILWV WKH REMHFWLYH LV WR SURYLGH UHDVRQDEOHUDWKHUWKDQDEVROXWHDVVXUDQFHWKDWWKHILQDQFLDOVWDWHPHQWVDUHIUHHRIDQ\PDWHULDOPLVVWDWHPHQWV  /DQFH6ROO /XQJKDUG//3KDVLVVXHGDQXQPRGLILHGRSLQLRQRQWKH'HSDUWPHQW¶VILQDQFLDOVWDWHPHQWVIRUWKH \HDUHQGHG-XQH7KHLQGHSHQGHQWDXGLWRU¶VUHSRUWLVORFDWHGDWWKHIURQWRIWKHILQDQFLDOVHFWLRQRIWKLV UHSRUW  0DQDJHPHQW¶VGLVFXVVLRQDQGDQDO\VLV ³0' $´ LPPHGLDWHO\IROORZVWKHLQGHSHQGHQWDXGLWRU¶VUHSRUWDQG SURYLGHVDQDUUDWLYHLQWURGXFWLRQRYHUYLHZDQGDQDO\VLVRIWKHEDVLFILQDQFLDOVWDWHPHQWV0' $FRPSOHPHQWV WKLVOHWWHURIWUDQVPLWWDODQGVKRXOGEHUHDGLQFRQMXQFWLRQZLWKLW  3URILOHRIWKH'HSDUWPHQW  7KH 6DQ %HUQDUGLQR 0XQLFLSDO :DWHU 'HSDUWPHQW DQG WKH :DWHU %RDUG RI &RPPLVVLRQHUV ³%RDUG´  ZHUH HVWDEOLVKHGRQ0D\WKE\WKH0D\RUDQG&RPPRQ&RXQFLORIWKH&LW\RI6DQ%HUQDUGLQRLQDFFRUGDQFH ZLWKWKHSURYLVLRQVVSHFLILHGLQWKH&LW\FKDUWHU7KH%RDUGDVVHPEOHGIRUWKHILUVWWLPHRQ0D\WKWR HQVXUHZDWHUVXSSO\QHHGVRIWKHFRPPXQLW\DUHPHWE\SURYLGLQJWUXVWHGTXDOLW\VHUYLFHWRRXUFXVWRPHUV7KLV VHUYLFHKDVJURZQWKURXJKWKH\HDUVWRLQFOXGHZDWHUVXSSO\ZDWHUUHFODPDWLRQJHRWKHUPDOKHDWLQJVXSSO\ VHZHUFROOHFWLRQDQGDGPLQLVWUDWLYHVXSSRUWIRUWKHJURZLQJFRPPXQLW\  i   Packet Pg. 294 7KHILUVWZDWHUGLVWULEXWLRQV\VWHPRI6DQ%HUQDUGLQRLQFOXGHGZDWHUVXSSO\IRUDSSUR[LPDWHO\VL[WKRXVDQG FLWL]HQV ZLWKLQ D RQH VTXDUH PLOH VHUYLFH DUHD 7RGD\ WKH 'HSDUWPHQW¶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¶VERXQGDULHV  ,Q 0D\ RI  PDQDJHPHQW DQG RSHUDWLRQV RI WKH 6HZHU &ROOHFWLRQ 6\VWHP ZHUH WUDQVIHUUHG IURP WKH &LW\RI6DQ%HUQDUGLQR3XEOLF:RUNV'HSDUWPHQWWRWKH6DQ%HUQDUGLQR0XQLFLSDO:DWHU'HSDUWPHQW7KH 6HZHU&ROOHFWLRQVHFWLRQLVUHVSRQVLEOHIRUPDLQWDLQLQJPLOHVRIVHZHUPDLQVVHYHUDOWKRXVDQGPDLQWHQDQFH KROHVDQGOLIWVWDWLRQV7KHV\VWHPHQFRPSDVVHVDSSUR[LPDWHO\FRQQHFWLRQVDQGFRQYH\VRYHUELOOLRQ JDOORQVRIVHZDJHDQQXDOO\WRWKH'HSDUWPHQW¶V:DWHU5HFODPDWLRQ3ODQWIRUWUHDWPHQW  )LVFDO0DQDJHPHQW  7KH%RDUGDQQXDOO\DGRSWVDQRSHUDWLQJDQGFDSLWDOEXGJHWSULRUWRWKHQHZILVFDO\HDU7KHEXGJHWDXWKRUL]HV DQGSURYLGHVWKHEDVLVIRUUHSRUWLQJDQGFRQWURORIILQDQFLDORSHUDWLRQVDQGDFFRXQWDELOLW\IRUWKH'HSDUWPHQW¶V IXQFWLRQVLQFOXGLQJWKH:DWHU8WLOLW\6HZHU7UHDWPHQWDQG6HZHU&ROOHFWLRQ)XQGV7KHEXGJHWDQGUHSRUWLQJ WUHDWPHQWDSSOLHGWRDIXQGLVFRQVLVWHQWZLWKWKHDFFUXDOEDVLVRIDFFRXQWLQJDQGWKHILQDQFLDOVWDWHPHQWEDVLV (DFK\HDUWKH'HSDUWPHQWDGRSWVDEDODQFHGEXGJHW  /RFDO(FRQRP\  7KH'HSDUWPHQW¶VRIILFHVDUHORFDWHGLQWKH&LW\RI6DQ%HUQDUGLQRLQ6DQ%HUQDUGLQR&RXQW\$FFRUGLQJWRWKH &DOLIRUQLD 'HSDUWPHQW RI )LQDQFH 6DQ %HUQDUGLQR¶V SRSXODWLRQ DV RI -XQH   ZDV  7KH&LW\RI6DQ%HUQDUGLQR ³WKH&LW\´ FRQWLQXHVWRUHFRYHUIURPWKHGRZQWXUQLQWKHHFRQRP\FDXVHGE\WKH 3DQGHPLF7KH&LW\¶VXQHPSOR\PHQWUDWHLVDVRI6HSWHPEHUZKLFKLVUHGXFHGIURPDUDWHRI DWWKHVDPHWLPHLQ7KH&LW\KDVUHFHLYHGIXQGVIURPWKH$PHULFDQ5HFRYHU\$FWWKDWZLOOKHOSVWLPXODWH HFRQRPLFJURZWKLQWKHDUHD7KH&LW\KDVDOORFDWHGWRWKH'HSDUWPHQWDSSUR[LPDWHO\PLOOLRQIURPWKH $PHULFDQ5HFRYHU\$FWIXQGVWRIXQGWKH'HSDUWPHQW¶V/HDG6HUYLFH/DWHUDOFDSLWDOSURMHFW7KH'HSDUWPHQW ZDVDOVRDEOHWRUHFRYHUDSSUR[LPDWHO\PLOOLRQIURPWKH&DOLIRUQLD$UUHDUDJH3D\PHQW3URJUDPIRUFXVWRPHU GHOLQTXHQFLHVUHODWHGWRWKH&29,'3DQGHPLF ³3DQGHPLF´   7KH0D\,QODQG(PSLUH5HJLRQDO,QWHOOLJHQFH5HSRUWSXEOLVKHGE\WKH8QLYHUVLW\RI&DOLIRUQLD5LYHUVLGH¶V &HQWHU IRU (FRQRPLF )RUHFDVWLQJ DQG 'HYHORSPHQW QRWHV WKDW WKH,QODQG (PSLUH¶V ODERU PDUNHW KDV IXOO\ UHFRYHUHGIURPWKH3DQGHPLF7KHXQHPSOR\PHQWUDWHIRUWKH,QODQG(PSLUHLVDVRIVXPPHUZKLFK LVORZHUWKDQWKHSUH3DQGHPLFUDWHRILQ)HEUXDU\RI7KHMREPDUNHWLQLQWKH,QODQG(PSLUH¶V ϭ^ƚĂƚĞŽĨĂůŝĨŽƌŶŝĂ͕ŵƉůŽLJŵĞŶƚĞǀĞůŽƉŵĞŶƚĞƉĂƌƚŵĞŶƚ͕>ĂďŽƌDĂƌŬĞƚ/ŶĨŽƌŵĂƚŝŽŶ͕ŚƚƚƉ͗ͬͬǁǁǁ͘ůĂďŽƌŵĂƌŬĞƚŝŶĨŽ͘ĞĚĚ͘ĐĂ͘ŐŽǀͬ ii   Packet Pg. 295 WUDQVSRUWDWLRQ DQG ZDUHKRXVLQJ VHFWRU KDV EHHQ ERRVWHG GXH WR WKH LQFUHDVH LQ HFRPPHUFH GXULQJ WKH 3DQGHPLF2YHUORFDOMREVZHUHDGGHGWRWKHWUDQVSRUWDWLRQDQGZDUHKRXVLQJVHFWRULQWKH,QODQG(PSLUH VLQFH)HEUXDU\2WKHUVHFWRUVOLNHSURIHVVLRQDOVFLHQWLILFDQGWHFKQLFDOVHUYLFHVDGPLQLVWUDWLYHVXSSRUW UHWDLOWUDGHDQGILQDQFLDODFWLYLWLHVKDYHKDGVLJQLILFDQWMREJDLQVDVZHOO:DJHVLQWKH,QODQG(PSLUHJUHZ IURPWKHWKLUGTXDUWHUWRWKHWKLUGTXDUWHURIZDJHVLQ6DQ%HUQDUGLQR&RXQW\JUHZZKLFKWUDLOV &DOLIRUQLD¶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¶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¶VUHYHQXHVLJQLILFDQWO\6WDWH:DWHU3URMHFWDOORFDWLRQVKDYHDOVR EHHQUHGXFHGLQUHVSRQVHWRWKHVWDWH¶VVXVWDLQHGGURXJKWFRQGLWLRQV7KH'HSDUWPHQWLVQRWDIIHFWHGE\WKH 6WDWH:DWHU3URMHFWDOORFDWLRQDVWKHSULPDU\VRXUFHRIZDWHUIRUWKH'HSDUWPHQWLVORFDOJURXQGZDWHU  )RUWKH'HSDUWPHQWWKHJRDORIZDWHUXVHHIILFLHQF\UHPDLQVSDUDPRXQW(IILFLHQWZDWHUXVHLVWKHPRVW FRVWHIIHFWLYH DQG LPPHGLDWH ZD\ WR DFKLHYH ORQJWHUP FRQVHUYDWLRQ JRDOV  $V VXFK WKH 'HSDUWPHQW LV FRPPLWWHGWRVKDULQJLQIRUPDWLRQSURJUDPVDQGLQFHQWLYHVWRHQFRXUDJHDQGVXSSRUWZDWHUXVHHIILFLHQF\IRU RXUFXVWRPHUV          iii   Packet Pg. 296    0DMRU,QLWLDWLYHV  Fuel Cell ,Q -XO\  WKH 'HSDUWPHQW FRPPHQFHG RSHUDWLRQ RI D IXHO FHOO IDFLOLW\ DW WKH 6DQ %HUQDUGLQR :DWHU 5HFODPDWLRQ3ODQW :53 VLWH7KHIXHOFHOODOORZVWKH'HSDUWPHQWWRFRQWLQXHEHQHILFLDOO\XVHRIPHWKDQH SURGXFHGIURPZDVWHZDWHUWUHDWPHQWGLJHVWHUV ³GLJHVWHUJDV´ WRSURGXFHHOHFWULFLW\IRUWKH:53  +LVWRULFDOO\WKH'HSDUWPHQWXVHGGLJHVWHUJDVEHQHILFLDOO\WRIXHOHQJLQHVWKDWRSHUDWHGJHQHUDWRUVDHUDWLRQ EORZHUVDQGSXPSVWKDWZHUHSDUWRIWKHZDVWHZDWHUWUHDWPHQWSURFHVV7KH'HSDUWPHQWPXVWPHHWVHYHUDO VWULQJHQWUHJXODWLRQVWRHQVXUHWKHKHDOWKDQGVDIHW\RIWKHFRPPXQLW\LWVHUYHVDQGWRSURWHFWWKHHQYLURQPHQW 7KLVLQFOXGHVQHZDQGUHYLVHGDLUTXDOLW\VWDQGDUGVIRURSHUDWLRQRIZDVWHZDWHUSODQWVVXFKDVWKH:53  7KHIDFLOLW\ZDVFRQFHLYHGDVSDUWRIWKH'HSDUWPHQW¶VRQJRLQJUHVSRQVHWRWKHQHZDQGUHYLVHGUHJXODWLRQVDQG VXSSRUWVWKH'HSDUWPHQW¶VSODQVWRLPSURYHRSHUDWLRQVDQGFRQWLQXHWREHQHILFLDOO\XWLOL]HELRJDVJHQHUDWHGIURP WKH:53GLJHVWHUV7KHIXHOFHOOIDFLOLW\ZDVGHYHORSHGLQDSXEOLFSULYDWHSDUWQHUVKLSEHWZHHQ6%0:'DQG )XHO&HOO(QHUJ\,QF )&(/ DOHDGLQJ86PDQXIDFWXUHURIIXHOFHOOSRZHUSODQWVZLWKVHYHUDOIDFLOLWLHVDW ZDVWHZDWHUWUHDWPHQWSODQWVLQ&DOLIRUQLD)&(/ZDVUHVSRQVLEOHIRUFRQVWUXFWLRQLQVWDOODWLRQFRPPLVVLRQLQJRI WKHHQWLUHIDFLOLW\DQGZLOODOVRSURYLGHORQJWHUPRSHUDWLRQPDLQWHQDQFHDQGVHUYLFH  Advanced Metering Infrastructure  7KH'HSDUWPHQWKDVEHHQVHOHFWHGWRUHFHLYHDJUDQWIURPWKH86%XUHDXRI5HFODPDWLRQWRVWDUW SKDVHRQHRIWKH'HSDUWPHQW¶V$GYDQFHG0HWHULQJ,QIUDVWUXFWXUH $0, SURMHFW,QDGGLWLRQWRWKLVJUDQWWKH 'HSDUWPHQW ZDV DOVR DZDUGHG D  PLOOLRQ JUDQW E\ WKH &$ 'HSDUWPHQW RI :DWHU 5HVRXUFHV 8UEDQ DQG 0XOWLEHQHILW 'URXJKW 5HOLHI *UDQW 3URJUDP  7KH ILUVW SKDVH RIWKH $0, SURMHFW ZLOO LQVWDOO DQG FRQQHFW DSSUR[LPDWHO\RQHTXDUWHURIWKH'HSDUWPHQW¶VZDWHUPHWHUVWRDQDGYDQFHGFRPPXQLFDWLRQVQHWZRUNWRJDWKHU ZDWHUFRQVXPSWLRQGDWDLQUHDOWLPH7KLVZDWHUXVHGDWDZLOOUHGXFHZDWHUZDVWHE\HQDEOLQJWKH'HSDUWPHQWWR LGHQWLI\DQGQRWLI\FXVWRPHUVRIOHDNVDQGDEQRUPDOO\KLJKZDWHUXVHPRUHTXLFNO\   ϮϮ͕Ϭϳϭ͕ϱϯϯ ϮϬ͕ϯϲϲ͕ϭϭϳ ϮϬ͕ϭϳϴ͕ϮϲϬ ϭϱ͕ϲϵϴ͕ϱϰϱ ϭϱ͕ϴϮϴ͕ϲϬϳ ϭϲ͕ϴϲϯ͕ϳϬϲ ϭϲ͕ϴϲϲ͕ϴϵϮ ϭϱ͕ϴϱϵ͕ϯϰϮ ϭϲ͕ϭϬϴ͕ϴϮϰ ϭϴ͕ϬϴϮ͕ϮϮϬ ϭϳ͕ϲϲϵ͕ϵϬϮ Ͳ ϱ͕ϬϬϬ͕ϬϬϬ ϭϬ͕ϬϬϬ͕ϬϬϬ ϭϱ͕ϬϬϬ͕ϬϬϬ ϮϬ͕ϬϬϬ͕ϬϬϬ Ϯϱ͕ϬϬϬ͕ϬϬϬ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮ tĂƚĞƌWƌŽĚƵĐƚŝŽŶ /Ŷ,ƵŶĚƌĞĚƵďŝĐ&ĞĞƚ tĂƚĞƌWƌŽĚƵĐƚŝŽŶ iv   Packet Pg. 297 Water Resource Management  7KH'HSDUWPHQWUHFHQWO\FRPSOHWHGDMRLQWSODQQLQJHIIRUWWRGHYHORSWKH,QWHJUDWHG5HJLRQDO8UEDQ:DWHU 0DQDJHPHQW3ODQZLWKVHYHUDODJHQFLHVZLWKLQWKH8SSHU6DQWD$QD5LYHU:DWHUVKHG7KLVHIIRUWGHYHORSHGD FRPSUHKHQVLYHJXLGHIRUZDWHUUHVRXUFHPDQDJHPHQWLQFOXGLQJDFWLRQVWRHQVXUHDGHTXDWHVXSSOLHVWRPHHW IXWXUHGHPDQGVZLWKLQDUDQJHRIZDWHUVXSSO\FRQGLWLRQVLQFOXGLQJZDWHUVKRUWDJHV  Regional Recycled Water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¶V 6WUDWHJLF 3ODQ ORQJWHUP ILQDQFLDO SODQV ZHUH GHYHORSHG IRU DOO WKUHH RI WKH 'HSDUWPHQW¶VHQWHUSULVHV:DWHU6HZHU7UHDWPHQWDQG6HZHU&ROOHFWLRQ7KHVHILQDQFLDOSODQVDVVLVWHGWKH 'HSDUWPHQWZLWKDFRVWRIVHUYLFHVWXG\IRUDOOWKUHHHQWHUSULVHV$FRVWRIVHUYLFHUDWHVWXG\FRQGXFWHGLQ )<UHFRPPHQGHGDQLQFUHDVHWRWKH'HSDUWPHQW¶VZDWHUDQGVHZHUUDWHV$VDUHVXOWRIWKHVWXG\WKH ZDWHU%RDUGDGRSWHGD\HDUUDWHLQFUHDVHIRUWKHZDWHUDQGVHZHUIXQGVHIIHFWLYH$SULO7KHUHPDLQLQJ LQFUHDVHVDUHHIIHFWLYHDQQXDOO\RQ-XO\VWDUWLQJ-XO\WKURXJK-XO\7KHVHQHZO\DGRSWHGUDWH VWUXFWXUHVDQGLQFUHDVHVZLOODOORZIRUEHWWHUUHYHQXHVWDELOLW\IRUWKH'HSDUWPHQWDVFRVWLQFUHDVHVDQGGURXJKW LVDPDMRUFRQFHUQIRUWKH6WDWH  7KH'HSDUWPHQW¶VILQDQFLDOSODQLQFOXGHVWKHUHYLVLRQRIWKHH[LVWLQJ5HVHUYH3ROLF\7KH'HSDUWPHQW¶VFXUUHQW 5HVHUYHSROLF\ZDVUHYLVHGDQGDGRSWHGE\WKH%RDUGLQ6HSWHPEHU  ¾ 2SHUDWLQJ 5HVHUYH 7KLV UHVHUYHLV HVWDEOLVKHG WR HQVXUH DGHTXDWH FDVK IORZ LV DYDLODEOHWR PHHW GD\WRGD\H[SHQVHV7KHWDUJHWEDODQFHLVGD\VRIWKHRSHUDWLQJH[SHQVHVEXGJHWHGIRUHDFK UHVSHFWLYHIXQG  ¾ 5DWH6WDELOL]DWLRQ5HVHUYH7KLVUHVHUYHLVHVWDEOLVKHGWRRIIVHWUHYHQXHULVNDVVRFLDWHGZLWKORZVHUYLFH GHPDQGV\HDUV7KHPLQLPXPWDUJHWEDODQFHIRUHDFKIXQGLVWZHQW\SHUFHQW  RIWKHLUUHVSHFWLYH EXGJHWHGVDOHV  ¾ (PHUJHQF\5HSODFHPHQW5HVHUYH7KHSXUSRVHRIWKLVUHVHUYHLVWRPLQLPL]HWKHLPSDFWRIXQIRUHVHHQ FDSLWDODVVHWDQGRSHUDWLQJH[SHQVHV7KHWDUJHWEDODQFHIRUHDFKIXQGVKDOOEHWZRSHUFHQW  RIWKH WRWDOUHFRUGHGYDOXHRIFDSLWDODVVHWVDVRIWKHSUHYLRXVILVFDO\HDU  ¾ &DSLWDO5HSODFHPHQW5HVHUYH7KH&DSLWDO5HSODFHPHQW5HVHUYHZDVVHWXSLQRUGHUWRSURYLGHIXQGLQJ VXSSRUWRIWKH'HSDUWPHQW¶VFDSLWDOSURJUDP7KHEDVLVIRUFDOFXODWLQJWKHWDUJHWEDODQFHIRUWKLVUHVHUYH LVDUROOLQJILYH\HDUDYHUDJHRIWKH'HSDUWPHQW¶V&DSLWDO,PSURYHPHQW3URJUDPSURMHFWVH[FOXGLQJWKRVH ZLWKH[WHUQDOIXQGLQJ7KHWDUJHWEDODQFHZLOOEHDVVHVVHGRQDQDQQXDOEDVLVDVSDUWRIWKHEXGJHWLQJ SURFHVV   v   Packet Pg. 298 'HEW$GPLQLVWUDWLRQ  7KH'HSDUWPHQW¶VRXWVWDQGLQJGHEWDVRI-XQHFRQVLVWVRIRQH5HYHQXH%RQGLQWKH:DWHU8WLOLW\)XQG DQGRQH5HYHQXH%RQGLQWKH6HZHU8WLOLW\)XQGDVVKRZQLQWKHWDEOHEHORZ  :DWHU)XQG/RQJ7HUP'HEW$FWLYLW\ <HDURI,VVXDQFH'HVFULSWLRQ 8VHRI3URFHHGV &DOLIRUQLD0XQLFLSDO)LQDQFH$XWKRULW\ 5HYHQXH%RQG )XQGLQJIRUIDFLOLW\FRQVWUXFWLRQVHLVPLFUHWURILW RIUHVHUYRLUVDQGRWKHUFDSLWDOLPSURYHPHQW SURMHFWV  6HZHU)XQG/RQJ7HUP'HEW$FWLYLW\ <HDURI,VVXDQFH'HVFULSWLRQ 8VHRI3URFHHGV &DOLIRUQLD0XQLFLSDO)LQDQFH$XWKRULW\ 5HYHQXH%RQG )XQGLQJIRUSULPDU\LQIOXHQWIORZHTXDOL]DWLRQ SURMHFWIDFLOLW\FRQVWUXFWLRQDQGUHF\FOHGZDWHU SURMHFW   5HOHYDQW)LQDQFLDO3ROLFLHV  Internal Control Structure 'HSDUWPHQWPDQDJHPHQWLVUHVSRQVLEOHIRUWKHHVWDEOLVKPHQWDQGPDLQWHQDQFHRIWKHLQWHUQDOFRQWUROVWUXFWXUH WKDWHQVXUHVWKDWWKHDVVHWVRIWKH'HSDUWPHQWDUHSURWHFWHGIURPORVVWKHIWRUPLVXVH7KHLQWHUQDOFRQWURO VWUXFWXUHDOVRHQVXUHVWKDWDGHTXDWHDFFRXQWLQJGDWDDUHFRPSLOHGWRDOORZIRUWKHSUHSDUDWLRQRIILQDQFLDO VWDWHPHQWVLQFRQIRUPLW\ZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHV7KH'HSDUWPHQW¶VLQWHUQDOFRQWURO VWUXFWXUHLVGHVLJQHGWRSURYLGHUHDVRQDEOHDVVXUDQFHWKDWWKHVHREMHFWLYHVDUHPHW7KHFRQFHSWRIUHDVRQDEOH DVVXUDQFHUHFRJQL]HVWKDW  WKHFRVWRIDFRQWUROVKRXOGQRWH[FHHGWKHEHQHILWVOLNHO\WREHGHULYHGDQG  WKHYDOXDWLRQRIFRVWVDQGEHQHILWVUHTXLUHVHVWLPDWHVDQGMXGJPHQWVE\PDQDJHPHQW  0DMRU,QLWLDWLYHVDQG.H\9DOXHV  7KHDFWLYLWLHVRIWKH%RDUGDQG'HSDUWPHQWVWDIIDUHGULYHQE\RXUNH\YDOXHVWDWHPHQWVDVRXWOLQHGEHORZ   3URYLGHWKHKLJKHVWOHYHORIFXVWRPHUVHUYLFHWRRXUFRPPXQLW\  5HVSRQVLEO\HVWDEOLVKQHFHVVDU\UDWHVLQWKHPRVWFRVWHIIHFWLYHPDQQHU  3URYLGHWKHKLJKHVWTXDOLW\ZDWHUDQGZDVWHZDWHUVHUYLFHV  3URYLGHUHVSRQVLEOHVWHZDUGVKLSRIRXUUHVRXUFHVDQGRXUHQYLURQPHQW  5HTXLUHHWKLFDOEXVLQHVVSUDFWLFHV  )RVWHUDVWURQJSRVLWLYHRUJDQL]DWLRQDOFXOWXUHDQGSURPRWHVWDIIGHYHORSPHQW  $ZDUGVDQG$FNQRZOHGJHPHQWV  7KH*RYHUQPHQW)LQDQFH2IILFHUV$VVRFLDWLRQ *)2$ RIWKH8QLWHG6WDWHVDQG&DQDGDDZDUGHGD&HUWLILFDWH RI$FKLHYHPHQWIRU([FHOOHQFHLQ)LQDQFLDO5HSRUWLQJWRWKH'HSDUWPHQWIRULWVDQQXDOFRPSUHKHQVLYHILQDQFLDO UHSRUWIRUWKHILVFDO\HDUHQGHG-XQH7REHDZDUGHGD&HUWLILFDWHRI$FKLHYHPHQWWKH'HSDUWPHQW PXVWSXEOLVKDQHDVLO\UHDGDEOHDQGHIILFLHQWO\RUJDQL]HGDQQXDOFRPSUHKHQVLYHILQDQFLDOUHSRUW7KLVUHSRUW PXVWVDWLVI\ERWKJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHVDQGDSSOLFDEOHOHJDOUHTXLUHPHQWV vi   Packet Pg. 299 vii   Packet Pg. 300 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of San Bernardino Municipal Water Department California For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2021 Executive Director/CEO viii   Packet Pg. 301 Deputy General ManagerRobin L. OhamaCITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENTORGANIZATIONRate PayersCity CouncilWater BoardGeneral ManagerMiguel J. Guerrero, P.E.Water UtilitySteve R. MillerDistributionOperationsMaintenanceEngineeringFinance and AccountingCynthia J. MouserFinanceAccountingPayrollPurchasingWater ReclamationKevin T. Stewart, P.E.OperationsProcessingMaintenanceElectrical/SCADARIX FacilitySewerCollectionEnvironmental &Regulatory ComplianceJennifer L. ShepardsonEvironmental &RegulatoryComplianceSafetyRisk MgmtEnvironmentalControlWater QualityHuman ResourcesCustomer ServiceField & Meter SvcsFleetInformation Technology ix&nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp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³5HVSRQVLELOLW\ WR RYHUVHH DQG PDQDJHWKH&LW\¶VZDWHUVXSSO\UHF\FOHGZDWHUZDVWHZDWHUFROOHFWLRQDQGWUHDWPHQW IXQFWLRQVLQDFFRUGDQFHZLWK6WDWH/DZ´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x   Packet Pg. 303                                                          203 N. Brea Blvd., Suite203 Brea,CA92821Lance, Soll & Lunghard, LLP Phone: 714.672.0022  ,1'(3(1'(17$8',7256¶5(3257  7RWKH:DWHU%RDUG &LW\RI6DQ%HUQDUGLQR0XQLFLSDO:DWHU'HSDUWPHQW 6DQ%HUQDUGLQR&DOLIRUQLD  5HSRUWRQWKH)LQDQFLDO6WDWHPHQWV  Opinions  :H KDYH DXGLWHG WKH DFFRPSDQ\LQJ ILQDQFLDO VWDWHPHQWV RI HDFK PDMRU IXQG RI WKH &LW\ RI 6DQ %HUQDUGLQR 0XQLFLSDO :DWHU 'HSDUWPHQW WKH ³'HSDUWPHQW´  D FRPSRQHQW XQLW RI WKH &LW\RI6DQ%HUQDUGLQR&DOLIRUQLD WKH³&LW\´ DVRIDQGIRUWKH\HDUHQGHG-XQHDQGWKHUHODWHG QRWHVWRWKHILQDQFLDOVWDWHPHQWVZKLFKFROOHFWLYHO\FRPSULVHWKH'HSDUWPHQW¶VEDVLFILQDQFLDOVWDWHPHQWV DVOLVWHGLQWKHWDEOHRIFRQWHQWV  ,Q RXU RSLQLRQ WKH ILQDQFLDO VWDWHPHQWV UHIHUUHG WR DERYH SUHVHQW IDLUO\ LQ DOO PDWHULDO UHVSHFWV WKH UHVSHFWLYHILQDQFLDOSRVLWLRQRIHDFKPDMRUIXQGRIWKH'HSDUWPHQWDVRI-XQHDQGWKHUHVSHFWLYH FKDQJHVLQILQDQFLDOSRVLWLRQDQGFDVKIORZVWKHUHRIIRUWKH\HDUWKHQHQGHGLQDFFRUGDQFHZLWKDFFRXQWLQJ SULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFD Basis for Opinions :H FRQGXFWHG RXU DXGLW LQ DFFRUGDQFH ZLWK DXGLWLQJ VWDQGDUGV JHQHUDOO\ DFFHSWHG LQ WKH 8QLWHG 6WDWHV RI $PHULFD *$$6  DQG WKH VWDQGDUGV DSSOLFDEOH WR ILQDQFLDO DXGLWV FRQWDLQHG LQ Government Auditing Standards LVVXHG E\ WKH &RPSWUROOHU *HQHUDO RI WKH 8QLWHG 6WDWHV 2XU UHVSRQVLELOLWLHVXQGHUWKRVHVWDQGDUGVDUHIXUWKHUGHVFULEHGLQWKH$XGLWRU¶V5HVSRQVLELOLWLHVIRUWKH$XGLW RIWKH)LQDQFLDO6WDWHPHQWVVHFWLRQRIRXUUHSRUW:HDUHUHTXLUHGWREHLQGHSHQGHQWRIWKH'HSDUWPHQW DQGWRPHHWRXURWKHUHWKLFDOUHVSRQVLELOLWLHVLQDFFRUGDQFHZLWKWKHUHOHYDQWHWKLFDOUHTXLUHPHQWVUHODWLQJ WRRXUDXGLWV:HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXIILFLHQWDQGDSSURSULDWHWRSURYLGH DEDVLVIRURXUDXGLWRSLQLRQV  Emphasis of Matter  Component Unit Reporting  $VGLVFXVVHGLQ1RWHWRWKHILQDQFLDOVWDWHPHQWVWKHILQDQFLDOVWDWHPHQWVSUHVHQWRQO\WKH'HSDUWPHQW DQG GRQRWSXUSRUW WR DQG GR QRW SUHVHQW IDLUO\ WKH ILQDQFLDOSRVLWLRQ RI WKH &LW\ DV DZKROH DV RI -XQHDQGWKHFKDQJHVLQLWVILQDQFLDOSRVLWLRQIRUWKH\HDUWKHQHQGHGLQDFFRUGDQFHZLWK DFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFD2XURSLQLRQVDUHQRWPRGLILHG ZLWKUHVSHFWWRWKLVPDWWHU Change in Accounting Principle  $VGHVFULEHGLQ1RWHWRWKHILQDQFLDOVWDWHPHQWVLQWKHILVFDO\HDUHQGHG-XQHWKH'HSDUWPHQW DGRSWHGQHZDFFRXQWLQJJXLGDQFH*$6%6WDWHPHQW1RLeases2XURSLQLRQLVQRWPRGLILHGZLWK UHVSHFWWRWKLVPDWWHU    Packet Pg. 304 7RWKH:DWHU%RDUG &LW\RI6DQ%HUQDUGLQR0XQLFLSDO:DWHU'HSDUWPHQW 6DQ%HUQDUGLQR&DOLIRUQLD  Responsibilities of Management for the Financial Statements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¶VDELOLW\WRFRQWLQXH DVDJRLQJFRQFHUQIRUWZHOYHPRQWKVEH\RQGWKHILQDQFLDOVWDWHPHQWGDWHLQFOXGLQJDQ\FXUUHQWO\NQRZQ LQIRUPDWLRQWKDWPD\UDLVHVXEVWDQWLDOGRXEWVKRUWO\WKHUHDIWHU  Auditor’s Responsibilities for the Audit of the Financial Statements  2XUREMHFWLYHVDUHWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUWKHILQDQFLDOVWDWHPHQWVDVDZKROHDUH IUHHIURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURUDQGWRLVVXHDQDXGLWRU¶VUHSRUWWKDWLQFOXGHV RXURSLQLRQ 5HDVRQDEOH DVVXUDQFH LV DKLJK OHYHO RI DVVXUDQFH EXW LV QRW DEVROXWHDVVXUDQFHDQG WKHUHIRUH LV QRW D JXDUDQWHH WKDW DQ DXGLW FRQGXFWHG LQ DFFRUGDQFH ZLWK *$$6 DQG Government Auditing Standards ZLOODOZD\VGHWHFWDPDWHULDOPLVVWDWHPHQWZKHQLWH[LVWV7KHULVNRI QRWGHWHFWLQJDPDWHULDOPLVVWDWHPHQWUHVXOWLQJIURPIUDXGLVKLJKHUWKDQIRURQHUHVXOWLQJIURPHUURUDV IUDXGPD\LQYROYHFROOXVLRQIRUJHU\LQWHQWLRQDORPLVVLRQVPLVUHSUHVHQWDWLRQVRUWKHRYHUULGHRILQWHUQDO FRQWURO0LVVWDWHPHQWVDUHFRQVLGHUHGPDWHULDOLIWKHUHLVDVXEVWDQWLDOOLNHOLKRRGWKDWLQGLYLGXDOO\RULQWKH DJJUHJDWH WKH\ ZRXOG LQIOXHQFH WKH MXGJPHQW PDGH E\ D UHDVRQDEOH XVHU EDVHG RQ WKH ILQDQFLDO VWDWHPHQWV  ,QSHUIRUPLQJDQDXGLWLQDFFRUGDQFHZLWK*$$6DQGGovernment Auditing StandardsZH  x ([HUFLVHSURIHVVLRQDOMXGJPHQWDQGPDLQWDLQSURIHVVLRQDOVNHSWLFLVPWKURXJKRXWWKHDXGLW  x ,GHQWLI\DQGDVVHVVWKHULVNVRIPDWHULDOPLVVWDWHPHQWRIWKHILQDQFLDOVWDWHPHQWVZKHWKHUGXHWR IUDXGRUHUURUDQGGHVLJQDQGSHUIRUPDXGLWSURFHGXUHVUHVSRQVLYHWRWKRVHULVNV6XFKSURFHGXUHV LQFOXGHH[DPLQLQJRQDWHVWEDVLVHYLGHQFHUHJDUGLQJWKHDPRXQWVDQGGLVFORVXUHVLQWKHILQDQFLDO VWDWHPHQWV  x 2EWDLQDQXQGHUVWDQGLQJRILQWHUQDOFRQWUROUHOHYDQWWRWKHDXGLWLQRUGHUWRGHVLJQDXGLWSURFHGXUHV WKDWDUHDSSURSULDWHLQWKHFLUFXPVWDQFHVEXWQRWIRUWKHSXUSRVHRIH[SUHVVLQJDQRSLQLRQRQWKH HIIHFWLYHQHVVRIWKH'HSDUWPHQW¶VLQWHUQDOFRQWURO$FFRUGLQJO\QRVXFKRSLQLRQLVH[SUHVVHG  x (YDOXDWHWKHDSSURSULDWHQHVVRIDFFRXQWLQJSROLFLHVXVHGDQGWKHUHDVRQDEOHQHVVRIVLJQLILFDQW DFFRXQWLQJHVWLPDWHVPDGHE\PDQDJHPHQWDVZHOODVHYDOXDWHWKHRYHUDOOSUHVHQWDWLRQRIWKH ILQDQFLDOVWDWHPHQWV  x &RQFOXGHZKHWKHULQRXUMXGJPHQWWKHUHDUHFRQGLWLRQVRUHYHQWVFRQVLGHUHGLQWKHDJJUHJDWH WKDWUDLVHVXEVWDQWLDOGRXEWDERXWWKH'HSDUWPHQW¶VDELOLW\WRFRQWLQXHDVDJRLQJFRQFHUQIRUD UHDVRQDEOHSHULRGRIWLPH  :HDUHUHTXLUHGWRFRPPXQLFDWHZLWKWKRVHFKDUJHGZLWKJRYHUQDQFHUHJDUGLQJDPRQJRWKHUPDWWHUVWKH SODQQHGVFRSHDQGWLPLQJRIWKHDXGLWVLJQLILFDQWDXGLWILQGLQJVDQGFHUWDLQLQWHUQDOFRQWUROUHODWHGPDWWHUV WKDWZHLGHQWLILHGGXULQJWKHDXGLW 2   Packet Pg. 305 7RWKH:DWHU%RDUG &LW\RI6DQ%HUQDUGLQR0XQLFLSDO:DWHU'HSDUWPHQW 6DQ%HUQDUGLQR&DOLIRUQLD  Other Reporting Responsibilities Required Supplementary Information  $FFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFDUHTXLUHWKDWWKHPDQDJHPHQW¶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¶VUHVSRQVHVWRRXULQTXLULHVWKHEDVLFILQDQFLDOVWDWHPHQWVDQGRWKHUNQRZOHGJHZH REWDLQHGGXULQJRXUDXGLWRIWKHEDVLFILQDQFLDOVWDWHPHQWV:HGRQRWH[SUHVVDQRSLQLRQRUSURYLGHDQ\ DVVXUDQFHRQWKHLQIRUPDWLRQEHFDXVHWKHOLPLWHGSURFHGXUHVGRQRWSURYLGHXVZLWKVXIILFLHQWHYLGHQFHWR H[SUHVVDQRSLQLRQRUSURYLGHDQ\DVVXUDQFH Other Information 0DQDJHPHQWLVUHVSRQVLEOHIRUWKHRWKHULQIRUPDWLRQLQFOXGHGLQWKHDQQXDOUHSRUW7KHRWKHULQIRUPDWLRQ FRPSULVHVWKHLQWURGXFWRU\VHFWLRQDQGVWDWLVWLFDOVHFWLRQEXWGRHVQRWLQFOXGHWKHEDVLFILQDQFLDOVWDWHPHQWV DQG RXU DXGLWRU¶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overnment Auditing Standards  ,Q DFFRUGDQFH ZLWKGovernment Auditing Standards ZH KDYH DOVR LVVXHG RXU UHSRUW GDWHG 'HFHPEHURQRXUFRQVLGHUDWLRQRIWKH'HSDUWPHQW¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQG RQRXUWHVWVRILWVFRPSOLDQFHZLWKFHUWDLQSURYLVLRQVRIODZVUHJXODWLRQVFRQWUDFWVDQGJUDQWDJUHHPHQWV DQGRWKHUPDWWHUV7KHSXUSRVHRIWKDWUHSRUWLVVROHO\WRGHVFULEHWKHVFRSHRIRXUWHVWLQJRILQWHUQDOFRQWURO RYHUILQDQFLDOUHSRUWLQJDQGFRPSOLDQFHDQGWKHUHVXOWVRIWKDWWHVWLQJDQGQRWWRSURYLGHDQRSLQLRQRQWKH HIIHFWLYHQHVVRIWKH'HSDUWPHQW¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJRURQFRPSOLDQFH7KDWUHSRUWLV DQLQWHJUDOSDUWRIDQDXGLWSHUIRUPHGLQDFFRUGDQFHZLWKGovernment Auditing StandardsLQFRQVLGHULQJ WKH'HSDUWPHQW¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQGFRPSOLDQFH  %UHD&DOLIRUQLD 'HFHPEHU 3   Packet Pg. 306 7+,63$*(,17(17,21$//</()7%/$1. 4   Packet Pg. 307 MANAGEMENT’S DISCUSSION AND ANALYSIS The City of San Bernardino Municipal Water Department (Department) is a water, sewer collection and treatment utility responsible for delivering high quality, economically priced water, sewer treatment and sewer collections services to a quarter of a million customers in and around the City of San Bernardino, California. This section of the Department’s annual financial report presents management’s analysis of the Department’s financial performance during the fiscal year that ended on June 30, 2022. Please read it in conjunction with the basic financial statements which follow this section. All amounts in the Management’s Discussion and Analysis within text areas are in thousands unless otherwise noted. Financial Highlights:  The Department’s overall net position increased by $17.3 million or 5.5%.  Operating revenues increased $2.7 million, 3.3% from the prior fiscal year. Revenues had a modest increase. On March 8th, 2022, the Board approved a rate increase that became effective on April 1st, 2022, resulting from a Rate Structure Study. The Cost of Service and Rate Design created a simplified rate structure, meeting the goals of the Department to provide revenue stability, affordability and to accommodate the rising operational cost. The simplified rate structure between the Sewer Utility and Sewer Collection fund will facilitate the merging of the funds in fiscal year 2023.  Operating expenses decreased $5.2 million, 6.8% decrease from the prior fiscal year. The most significant variances were noted in the categories of electricity, chemicals, capital repair and maintenance offset by decreased changes in experience and actuarial assumptions for pension and other post-employment benefits, and depreciation expense decrease in the water fund as a result of asset useful life corrections in the current year.  Net income/loss before capital contributions increased by $7.6 million.  The Department’s current ratio (the ability to pay short-term obligations) was 6.9.  Cash available (the ability to cover current expenses with cash) was 725 days. Overview of the Financial Statements The discussion and analysis are intended to serve as an introduction to the Department’s basic financial statements. The Department’s basic financial statements are comprised of two components: the Financial Statements and the Notes to the Basic Financial Statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Information providing citywide financial results is available in the City’s Annual Comprehensive Financial Report. Required Financial Statements The financial statements of the Department report information about the Department using accounting methods similar to those used by private sector companies. These statements offer short-term and long-term financial information about its activities. The Statement of Net Position (pages 14-15) includes all of the Department’s investments in resources (assets) and the 5   Packet Pg. 308 obligations to creditors (liabilities). It also provides the basis for evaluating the capital structure of the Department and assessing the liquidity and financial flexibility of the Department. All of the current year’s revenues and expenses are accounted for in the Statement of Revenues, Expenses and Changes in Net Position. (page 17) This statement measures the success of the Department’s operations over the past year and can be used to determine whether the Department has successfully recovered all its costs through its user fees and other charges, profitability, and credit worthiness. The final required financial statement is the Statement of Cash Flows (pages 18-19). The primary purpose of this statement is to provide information about the Department’s cash receipts and cash payments during the reporting period. The statement reports cash receipts, cash payments, and net changes in cash resulting from operations, investing, and financing activities and provides answers to questions such as “where did cash come from, what was cash used for, and what was the change in cash balance during the reporting period?” Financial Analysis of the Department Our analysis of the Department begins on page 6 of the financial statements. One of the most important questions to ask about the Department’s finances is “Whether the Department, as a whole, is better off or worse off as a result of the year’s activities?” The Statement of Net Position, and the Statement of Revenues, Expenses and Changes in Net Position report information about the Department’s activities in a way that will help answer this question. These two statements report the net position of the Department and changes in them. Measuring the change in the Department’s net position - the difference between assets and liabilities - is one way to measure financial health or financial position. Over time, increases or decreases in the Department’s net assets are indications of whether its financial health is improving or deteriorating. However, one will need to consider other non-financial factors such as changes in economic conditions, population growth, and zoning and new or changed government legislation. Water Utility Fund To begin our analysis, a summary of the Water Utility Fund’s Statement of Net Position is presented in Table A-1. 6   Packet Pg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  Packet Pg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  Packet Pg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  Packet Pg. 312   7RWDO FDSLWDO DVVHWV LQFUHDVHG E\  RU  PLOOLRQ LQ ILVFDO \HDU  SULPDULO\ GXH WR FRQVWUXFWLRQLQSURJUHVVH[SHQGLWXUHVUHODWHGWRWKH%ORZHU'HFHQWUDOL]DWLRQ3URMHFW PLOOLRQ  )ODUH5HSODFHPHQW3URMHFW PLOOLRQ DQGWKH'LJHVWHU%5HSODFHPHQW3ODQ PLOOLRQ  0RUHLQIRUPDWLRQUHODWLQJWRFDSLWDODVVHWVFDQEHIRXQGLQ1RWHRIWKH1RWHVWRWKH%DVLF )LQDQFLDO6WDWHPHQWV   'XULQJWKH\HDUWKH6HZHU8WLOLW\¶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  Packet Pg. 313    'XULQJ ILVFDO \HDU  WRWDO UHYHQXHV IRU WKH 6HZHU &ROOHFWLRQ 8WLOLW\ GHFUHDVHG  RU PLOOLRQIURPWKHSULRU\HDUUHVXOWLQJIURPWKHUDWHLQFUHDVHWKDWZDVHIIHFWLYH$SULO 6HZHU&ROOHFWLRQVUHYHQXHZDVUHFRUGHGLQWKH6HZHU7UHDWPHQWIXQGDVWKHUDWHVWXG\FRPELQHG WKH6HZHU7UHDWPHQWDQG6HZHU&ROOHFWLRQPRQWKO\FKDUJHDQGYDULDEOHUDWH7KHFRPELQHGUDWHV DUH EHLQJ UHFRUGHG LQ WKH 6HZHU 8WLOLW\ IXQG HIIHFWLYH $SULO  VW   &DSLWDO FRQWULEXWLRQV LQFUHDVHGRUPLOOLRQIURPWKHSULRU\HDUSULPDULO\GXHWRDQLQFUHDVHLQVHZHUDGGHG IDFLOLW\ FKDUJHV FDSDFLW\ FKDUJHV  DQG FRQWULEXWHG DVVHWV IURP GHYHORSHUV 7RWDO H[SHQVHV LQFUHDVHGRUPLOOLRQLQILVFDO\HDU7KHLQFUHDVHLVSULPDULO\DWWULEXWHGWRWKH LQFUHDVHLQQRQRSHUDWLQJH[SHQVHUHODWLQJWRWKHFKDQJHLQIDLUYDOXHRILQYHVWPHQWV   7RWDOFDSLWDODVVHWVLQFUHDVHGE\RUPLOOLRQLQILVFDO\HDUGXHWRH[WHQVLYHUHSDLUV DQGUHKDELOLWDWLRQRIVHZHUFROOHFWLRQPDLQVDQGPDQKROHUHSDLUVDORQJZLWKWUDQVIHURIPDLQVIURP WKH6HZHU8WLOLW\)XQGGXULQJWKHILVFDO\HDU0RUHLQIRUPDWLRQUHODWLQJWRFDSLWDODVVHWVFDQEH IRXQGLQ1RWHRIWKH1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV7KH6HZHU&ROOHFWLRQV8WLOLW\ GRHVQRWKDYHDQ\RXWVWDQGLQJGHEW 11   Packet Pg. 314   (FRQRPLF)DFWRUVDQG1H[W<HDU¶V%XGJHWVDQG5DWHV  7KH6HUYLFH$UHD 6HUYLFH$UHD HFRQRP\VHUYHGE\WKH'HSDUWPHQWFRQWLQXHVWRUHFRYHUIURP WKHGRZQWXUQLQWKHHFRQRP\FDXVHGE\WKH&29,'3DQGHPLF7KH&LW\KDVUHFHLYHGIXQGV IURPWKH$PHULFDQ5HFRYHU\$FWWKDWZLOOKHOSVWLPXODWHHFRQRPLFJURZWKLQWKHDUHD7KH&LW\ KDVHQFXPEHUHGIRUWKH'HSDUWPHQWDSSUR[LPDWHO\PLOOLRQIURPWKH$PHULFDQ5HFRYHU\$FW IXQGVWRIXQGWKH'HSDUWPHQW¶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¶VEXGJHWFDQEHIRXQGRQWKH 'HSDUWPHQW¶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¶V'LUHFWRURI)LQDQFH  7KLVILQDQFLDOUHSRUWLVGHVLJQHGWRSURYLGHRXUFXVWRPHUVDQGFUHGLWRUVZLWKDJHQHUDORYHUYLHZ RIWKH'HSDUWPHQW¶VILQDQFHVDQGWRGHPRQVWUDWHWKH'HSDUWPHQW¶VDFFRXQWDELOLW\IRUWKHPRQH\ LWUHFHLYHV,I\RXKDYHTXHVWLRQVDERXWWKLVUHSRUWRUQHHGDGGLWLRQDOILQDQFLDOLQIRUPDWLRQSOHDVH FRQWDFWWKH'HSDUWPHQW¶VILQDQFHGHSDUWPHQWDW    12   Packet Pg. 315 %$6,&),1$1&,$/67$7(0(176 13   Packet Pg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  Packet Pg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  Packet Pg. 318 7+,63$*(,17(17,21$//</()7%/$1. 16   Packet Pg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  Packet Pg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  Packet Pg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  Packet Pg. 322 7+,63$*(,17(17,21$//</()7%/$1. 20   Packet Pg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±7KH:DWHU8WLOLW\(QWHUSULVH)XQG :DWHU8WLOLW\ LVXVHGWR DFFRXQWIRUWKHRSHUDWLRQVRIWKH'HSDUWPHQW¶VZDWHUV\VWHPDQGUHODWHGUHYHQXHV  6HZHU8WLOLW\)XQG±7KH6HZHU8WLOLW\(QWHUSULVH)XQG 6HZHU8WLOLW\ LVXVHGWR DFFRXQWIRUWKHRSHUDWLRQVRIWKH&LW\¶VZDVWHZDWHUWUHDWPHQWV\VWHPDQGUHODWHG UHYHQXHV7KH6HZHUFRQYH\DQFHV\VWHPLVXQGHUWKHGLUHFWLRQRIWKH&LW\¶V3XEOLF :RUNV'HSDUWPHQW  6HZHU &ROOHFWLRQ 8WLOLW\ )XQG ± 7KH 6HZHU &ROOHFWLRQ (QWHUSULVH )XQG 6HZHU&ROOHFWLRQ LVXVHGWRDFFRXQWIRUWKHRSHUDWLRQVRIWKH&LW\¶VVHZHUFROOHFWLRQ V\VWHPDQGUHODWHGUHYHQXHV  $GPLQLVWUDWLYHDQGHQJLQHHULQJVHUYLFHVDUHSURYLGHGE\WKH:DWHU8WLOLW\WRWKH6HZHUDQG 6HZHU&ROOHFWLRQ8WLOLWLHV 21   Packet Pg. 324 &,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  )257+(<($5(1'('-81(   1RWH 5HSRUWLQJ(QWLW\DQG6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ3ROLFLHV &RQWLQXHG   F )LQDQFLDO5HSRUWLQJ  7KH 'HSDUWPHQW¶V EDVLF ILQDQFLDO VWDWHPHQWV DUH SUHVHQWHG LQ FRQIRUPDQFH ZLWK WKH SURYLVLRQV RI *RYHUQPHQWDO $FFRXQWLQJ 6WDQGDUGV %RDUG *$6%  6WDWHPHQW 1R  ³%DVLF)LQDQFLDO6WDWHPHQWV±DQG0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLV±IRU6WDWHDQG /RFDO*RYHUQPHQWV´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  Packet Pg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x 4XRWHGSULFHVIRUVLPLODUDVVHWVRUOLDELOLWLHVLQDFWLYHPDUNHWV x 4XRWHGSULFHVIRULGHQWLFDORUVLPLODUDVVHWVRUOLDELOLWLHVLQPDUNHWVWKDWDUH LQDFWLYH x ,QSXWVRWKHUWKDQTXRWHGSULFHVWKDWDUHREVHUYDEOHIRUWKHDVVHWRUOLDELOLW\ x ,QSXWV WKDW DUH GHULYHG SULQFLSDOO\ IURP RU FRUURERUDWHG E\ REVHUYDEOH PDUNHWGDWDE\FRUUHODWLRQRURWKHUPHDQV  /HYHO,QSXWVWRWKHYDOXDWLRQPHWKRGRORJ\DUHXQREVHUYDEOHDQGVLJQLILFDQWWR WKHIDLUYDOXHPHDVXUHPHQW7KHVHXQREVHUYDEOHLQSXWVUHIOHFWWKH'HSDUWPHQW¶V RZQDVVXPSWLRQVDERXWWKHLQSXWVPDUNHWSDUWLFLSDQWVZRXOGXVHLQSULFLQJWKH DVVHWRUOLDELOLW\ LQFOXGLQJDVVXPSWLRQVDERXWULVN 7KHVHXQREVHUYDEOHLQSXWVDUH GHYHORSHGEDVHGRQWKHEHVWLQIRUPDWLRQDYDLODEOHLQWKHFLUFXPVWDQFHVDQGPD\ LQFOXGHWKH'HSDUWPHQW¶VRZQGDWD   $FFRXQWV5HFHLYDEOH  &XVWRPHU RU WUDGH UHFHLYDEOHV DUH VKRZQ QHW RI DQ DOORZDQFH IRU XQFROOHFWLEOH DFFRXQWV EDVHG RQ KLVWRULFDO DQG PDQDJHPHQW HVWLPDWHV  7UDQVDFWLRQV EHWZHHQ IXQGVWKDWDUHUHSUHVHQWDWLYHRIOHQGLQJRUERUURZLQJDUUDQJHPHQWVRXWVWDQGLQJDWWKH HQGRIWKHILVFDO\HDUDUHUHIHUUHGWRDV³LQWHUIXQGUHFHLYDEOHVSD\DEOHV´RU³DGYDQFHV WRIURP´RWKHUIXQGV$OOLQWHUIXQGWUDQVDFWLRQVDUHHOLPLQDWHGIRUILQDQFLDOUHSRUWLQJ   ,QYHQWRU\  0DWHULDOVDQGVXSSOLHVLQYHQWRU\FRQVLVWSULPDULO\RIZDWHUPHWHUVSLSHDQGSLSHILWWLQJV IRUFRQVWUXFWLRQDQGUHSDLUWRWKH'HSDUWPHQW¶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  Packet Pg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¶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  Packet Pg. 327 &,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  )257+(<($5(1'('-81(   1RWH 5HSRUWLQJ(QWLW\DQG6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ3ROLFLHV &RQWLQXHG   2WKHU3RVW(PSOR\PHQW%HQHILWV 23(%   )RUSXUSRVHVRIPHDVXULQJWKHQHW23(%OLDELOLW\GHIHUUHGRXWIORZVRIUHVRXUFHVDQG GHIHUUHGLQIORZVRIUHVRXUFHVUHODWHGWR23(%DQG23(%H[SHQVHLQIRUPDWLRQDERXW WKHILGXFLDU\QHWSRVLWLRQRIWKH'HSDUWPHQW¶VSODQ 23(%3ODQ WKHDVVHWVRIZKLFK DUHKHOGE\86%DQNLQDQLUUHYRFDEOHWUXVWDQGDGGLWLRQVWRGHGXFWLRQVIURPWKH 23(%3ODQ¶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  Packet Pg. 328 &,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  )257+(<($5(1'('-81(   1RWH 5HSRUWLQJ(QWLW\DQG6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ3ROLFLHV &RQWLQXHG   1HW3RVLWLRQ  7KHILQDQFLDOVWDWHPHQWVXWLOL]HDQHWSRVLWLRQSUHVHQWDWLRQ1HWSRVLWLRQLVFDWHJRUL]HG DVIROORZV  x1HW,QYHVWPHQWLQ&DSLWDO$VVHWV±7KLVFRPSRQHQWRIQHWSRVLWLRQFRQVLVWV RIFDSLWDODVVHWVQHWRIDFFXPXODWHGGHSUHFLDWLRQDQGUHGXFHGE\DQ\GHEW RXWVWDQGLQJ DJDLQVW WKH DFTXLVLWLRQ FRQVWUXFWLRQ RU LPSURYHPHQW RI WKRVH DVVHWV  x5HVWULFWHG 1HW 3RVLWLRQ ±7KLV FRPSRQHQW RI QHW SRVLWLRQ FRQVLVWV RI FRQVWUDLQWVSODFHGRQQHWSRVLWLRQXVHWKURXJKH[WHUQDOFRQVWUDLQWVLPSRVHG E\ FUHGLWRUV JUDQWRUV FRQWULEXWRUV RU ODZV RU UHJXODWLRQV RIRWKHU JRYHUQPHQWVRUFRQVWUDLQWVLPSRVHGE\ODZWKURXJKFRQVWLWXWLRQDOSURYLVLRQV RUHQDEOLQJOHJLVODWLRQ  x8QUHVWULFWHG1HW3RVLWLRQ±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  Packet Pg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¶VSODQ RIDGMXVWPHQWEHFDPHHIIHFWLYHRQ-XQH1RUHYHQXHVRIWKH'HSDUWPHQWZHUHXVHG WRSD\JHQHUDOFODLPVGXULQJWKHSHQGHQF\RIWKH&LW\¶VEDQNUXSWF\FDVHRUSXUVXDQWWRLWV FRQILUPHGSODQ,QDGGLWLRQQRJHQHUDOFODLPVRIWKH&LW\ZHUHVXFFHVVIXOO\DVVHUWHGDJDLQVW WKH'HSDUWPHQWRULWVUHYHQXHVGXULQJWKHSHQGHQF\RIWKH&LW\¶VEDQNUXSWF\FDVH7KHSODQ RIDGMXVWPHQWGRHVQRWLPSDLURUDIIHFWWKHUHYHQXHVRIWKH'HSDUWPHQW7KH'HSDUWPHQW FRQWLQXHVWRKROGLWVUHYHQXHVLQVHJUHJDWHGDFFRXQWVDQGXVHVWKHPRQO\IRUWKHSXUSRVHV SURYLGHGIRUXQGHUVWDWHODZDQGWKH&LW\&KDUWHU  2Q6HSWHPEHUWK86%DQNUXSWF\-XGJH6FRWW&&ODUNVRQLVVXHGDQRUGHUGLVFKDUJLQJWKH &LW\RI6DQ%HUQDUGLQR¶VEDQNUXSWF\FDVHEULQJLQJDQHQGWRDSURFHVVWKDWEHJDQRYHUWHQ \HDUVDJR  1RWH &DVKDQG,QYHVWPHQWV  &DVKDQGLQYHVWPHQWVDUHUHSRUWHGLQWKHDFFRPSDQ\LQJVWDWHPHQWRIQHWSRVLWLRQDVIROORZV  :DWHU8WLOLW\ 6HZHU8WLOLW\ 6HZHU &ROOHFWLRQ 8WLOLW\ 7RWDO &DVKDQGLQYHVWPHQWV     5HVWULFWHGLQYHVWPHQWV 5HVWULFWHGIRU&RQVHQW'HFUHH     3URFHHGIURP%RQG,VVXDQFH     7RWDO&DVKDQG,QYHVWPHQWV           27   Packet Pg. 330 &,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  )257+(<($5(1'('-81(   1RWH &DVKDQG,QYHVWPHQWV &RQWLQXHG   &DVKDQGLQYHVWPHQWVDW-XQHFRQVLVWHGRIWKHIROORZLQJ  :DWHU8WLOLW\ 6HZHU8WLOLW\ 6HZHU &ROOHFWLRQ 8WLOLW\ 7RWDO &DVKRQ+DQG     'HSRVLWVZLWK)LQDQFLDO,QVWLWXWLRQV     ,QYHVWPHQWV     5HVWULFWHGLQYHVWPHQWV     7RWDO&DVKDQG,QYHVWPHQWV     D ,QYHVWPHQWV$XWKRUL]HGE\WKH&DOLIRUQLD*RYHUQPHQW&RGHDQGWKH'HSDUWPHQW¶V ,QYHVWPHQW3ROLF\  7KHWDEOHEHORZLGHQWLILHVWKHLQYHVWPHQWW\SHVWKDWDUHDXWKRUL]HGE\WKH'HSDUWPHQWDQG &RQVHQW 'HFUHH VHH QRWH   LQ DFFRUGDQFH ZLWK WKH &DOLIRUQLD*RYHUQPHQW &RGH RUWKH&LW\¶VLQYHVWPHQWSROLF\ZKHUHPRUHUHVWULFWLYH 7KHWDEOHDOVRLGHQWLILHVFHUWDLQ SURYLVLRQVRIWKH&DOLIRUQLD*RYHUQPHQW&RGH RUWKH&LW\¶VLQYHVWPHQWSROLF\ZKHUHPRUH UHVWULFWLYH WKDWDGGUHVVHVLQWHUHVWUDWHULVNFUHGLWULVNDQGFRQFHQWUDWLRQRIFUHGLWULVN 'XH WR LWV ORQJWHUP QDWXUH WKH &RQVHQW 'HFUHH KDV EHHQ H[SOLFLWO\ H[HPSWHG IURP PD[LPXPPDWXULW\UHTXLUHPHQWVRIWKH&DOLIRUQLD*RYHUQPHQW&RGHZKLFKOLPLWVPDWXULW\ RIPRVWLQYHVWPHQWVWRILYH\HDUV$OORWKHUDVSHFWVRIWKH&RQVHQW'HFUHHLQYHVWPHQW SROLF\DUHFRQVLVWHQWZLWKWKH&LW\¶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¶VLQYHVWPHQWSROLF\,QYHVWPHQWVDXWKRUL]HGIRUIXQGVKHOGE\ERQGWUXVWHHLQFOXGH 86 7UHDVXU\ 2EOLJDWLRQV 86 *RYHUQPHQW 6SRQVRUHG (QWHUSULVH 6HFXULWLHV WKH &DOLIRUQLD /RFDO $JHQF\ ,QYHVWPHQW )XQG *XDUDQWHHG ,QYHVWPHQW &RQWUDFWV &RPPHUFLDO3DSHU/RFDO$JHQF\%RQGV%DQNHU¶V$FFHSWDQFHDQG0RQH\0DUNHW0XWXDO )XQGV7KHUHDUHQROLPLWDWLRQVRQWKHPD[LPXPDPRXQWWKDWFDQEHLQYHVWHGLQRQHLVVXHU PD[LPXPSHUFHQWDJHDOORZHGRUWKHPD[LPXPPDWXULW\RIDQLQYHVWPHQWH[FHSWIRUWKH PDWXULW\RI%DQNHU¶V$FFHSWDQFHZKLFKDUHOLPLWHGWRRQH\HDU 28   Packet Pg. 331 &,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  )257+(<($5(1'('-81(   1RWH &DVKDQG,QYHVWPHQWV &RQWLQXHG   F &XVWRGLDO&UHGLW5LVN  &XVWRGLDOFUHGLWULVNIRUGHSRVLWVLVWKHULVNWKDWLQWKHHYHQWRIWKHIDLOXUHRIDGHSRVLWRU\ ILQDQFLDOLQVWLWXWLRQDJRYHUQPHQWZLOOQRWEHDEOHWRUHFRYHULWVGHSRVLWVRUZLOOQRWEHDEOH WRUHFRYHUFROODWHUDOVHFXULWLHVWKDWDUHLQWKHSRVVHVVLRQRIDQRXWVLGHSDUW\7KHFXVWRGLDO FUHGLWULVNIRULQYHVWPHQWVLVWKHULVNWKDWLQWKHHYHQWRIWKHIDLOXUHRIWKHFRXQWHUSDUW\WRD WUDQVDFWLRQDJRYHUQPHQWZLOOQRWEHDEOHWRUHFRYHUWKHYDOXHRILWVLQYHVWPHQWRUFROODWHUDO VHFXULWLHVWKDWDUHLQWKHSRVVHVVLRQRIDQRWKHUSDUW\7KH&DOLIRUQLD*RYHUQPHQW&RGH UHTXLUHVWKDWDILQDQFLDOLQVWLWXWLRQVHFXUHGHSRVLWVPDGHE\DVWDWHRUORFDOJRYHUQPHQWDO XQLWE\SOHGJLQJVHFXULWLHVLQDQXQGLYLGHGFROODWHUDOSRROKHOGE\DGHSRVLWRU\UHJXODWHG XQGHUVWDWHODZ  7KHPDUNHWYDOXHRIWKHSOHGJHGVHFXULWLHVLQWKHFROODWHUDOSRROPXVWHTXDODWOHDVW RIWKHWRWDODPRXQWGHSRVLWHGE\WKHSXEOLFDJHQFLHV&DOLIRUQLDODZDOVRDOORZVILQDQFLDO LQVWLWXWLRQVWRVHFXUHWKH'HSDUWPHQW¶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¶VLQYHVWPHQWLQWKLVSRROLVUHSRUWHGLQ WKHDFFRPSDQ\LQJILQDQFLDOVWDWHPHQWVDWDPRXQWVEDVHGXSRQWKH'HSDUWPHQW¶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  Packet Pg. 332 &,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  )257+(<($5(1'('-81(   1RWH &DVKDQG,QYHVWPHQWV &RQWLQXHG   ,QIRUPDWLRQDERXWWKHVHQVLWLYLW\RIWKHIDLUYDOXHVRIWKH'HSDUWPHQW¶VLQYHVWPHQWVWR PDUNHW LQWHUHVW UDWH IOXFWXDWLRQV LV SURYLGHG E\ WKH IROORZLQJWDEOH WKDW VKRZV WKH GLVWULEXWLRQRIWKH'HSDUWPHQW¶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¶V LQYHVWPHQWSROLF\RUGHEWDJUHHPHQWVDQGWKHDFWXDOUDWLQJDVRI\HDUHQGIRUHDFK LQYHVWPHQWW\SH   30   Packet Pg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  Packet Pg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  Packet Pg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  Packet Pg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  Packet Pg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  Packet Pg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  Packet Pg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  Packet Pg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¶V0LVFHOODQHRXV3ODQDQDJHQWPXOWLSOHHPSOR\HU GHILQHGEHQHILWSHQVLRQSODQDGPLQLVWHUHGE\WKH&DOLIRUQLD3XEOLF(PSOR\HHV¶5HWLUHPHQW 6\VWHP &DO3(56 ZKLFKDFWVDVDFRPPRQLQYHVWPHQWDQGDGPLQLVWUDWLYHDJHQWIRULWV SDUWLFLSDWLQJPHPEHUHPSOR\HUV%HQHILWSURYLVLRQVXQGHUWKH3ODQDUHHVWDEOLVKHGE\6WDWH VWDWXWHDQG/RFDO*RYHUQPHQWUHVROXWLRQ&DO3(56LVVXHVSXEOLFO\DYDLODEOHUHSRUWVWKDW LQFOXGHDIXOOGHVFULSWLRQRIWKHSHQVLRQSODQVUHJDUGLQJEHQHILWSURYLVLRQVDVVXPSWLRQVDQG PHPEHUVKLSLQIRUPDWLRQWKDWFDQEHIRXQGRQWKH&DO3(56ZHEVLWH$GGLWLRQDOGLVFORVXUHV DQGUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQUHJDUGLQJWKH&LW\¶VSODQFDQEHIRXQGLQWKH&LW\¶V DXGLWHGILQDQFLDOVWDWHPHQWV  D %HQHILWVSURYLGHG  &DO3(56 SURYLGHV VHUYLFH UHWLUHPHQW DQG GLVDELOLW\ EHQHILWV DQQXDO FRVW RI OLYLQJ DGMXVWPHQWVDQGGHDWKEHQHILWVWRSODQPHPEHUVZKRPXVWEHSXEOLFHPSOR\HHVDQG EHQHILFLDULHV%HQHILWVDUHEDVHGRQ\HDUVRIFUHGLWHGVHUYLFHHTXDOWRRQH\HDURIIXOOWLPH HPSOR\PHQW7KH3ODQV¶SURYLVLRQVDQGEHQHILWVLQHIIHFWDWWKHPHDVXUHPHQWGDWHDUH VXPPDUL]HGDVIROORZV +LUHGDWH 3ULRUWR -DQXDU\ 2QRUDIWHU -DQXDU\ %HQHILWIRUPXOD # # %HQHILWYHVWLQJVFKHGXOH \HDUVVHUYLFH \HDUVVHUYLFH %HQHILWSD\PHQWV PRQWKO\IRUOLIH PRQWKO\IRUOLIH 5HWLUHPHQWDJH   0RQWKO\EHQHILWVDVDRIHOLJLEOH FRPSHQVDWLRQ WR WR 5HTXLUHGHPSOR\HHFRQWULEXWLRQUDWHV   5HTXLUHGHPSOR\HUFRQWULEXWLRQUDWHV   0LVFHOODQHRXV    38   Packet Pg. 341 &,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  )257+(<($5(1'('-81(   1RWH 3HQVLRQ3ODQ &RQWLQXHG   E (PSOR\HHV&RYHUHG  $VRIWKH-XQHPHDVXUHPHQWGDWHWKHIROORZLQJHPSOR\HHVZHUHFRYHUHGE\WKH EHQHILWWHUPVRIWKH3ODQ  &LW\ZLGH 'HSDUWPHQW ,QDFWLYHHPSOR\HHVRUEHQHILFLDULHVFXUUHQWO\UHFHLYLQJEHQHILW V   ,QDFWLYHHPSOR\HHVHQWLWOHGWREXWQRW\HWUHFHLYLQJEHQHILWV   $FWLYHHPSOR\HHV   7RWDO   F &RQWULEXWLRQ'HVFULSWLRQ  6HFWLRQ F RIWKH&DOLIRUQLD3XEOLF(PSOR\HHV¶5HWLUHPHQW/DZ 3(5/ UHTXLUHVWKDW WKHHPSOR\HUFRQWULEXWLRQUDWHVIRUDOOSXEOLFHPSOR\HUVEHGHWHUPLQHGRQDQDQQXDOEDVLV E\WKHDFWXDU\DQGVKDOOEHHIIHFWLYHRQWKH-XO\IROORZLQJQRWLFHRIDFKDQJHLQWKHUDWH 7KHWRWDOSODQFRQWULEXWLRQVDUHGHWHUPLQHGWKURXJK&DO3(56¶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  Packet Pg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¶5HWLUHPHQW)XQG 3(5) 7KHFDVKIORZVXVHGLQWKHWHVWLQJZHUH GHYHORSHG DVVXPLQJ WKDW ERWK PHPEHUV DQG HPSOR\HUV ZLOO PDNH WKHLU UHTXLUHG FRQWULEXWLRQVRQWLPHDQGDVVFKHGXOHGLQDOOIXWXUH\HDUV7KHVWUHVVWHVWUHVXOWVDUH SUHVHQWHG LQ D GHWDLOHG UHSRUW FDOOHG ³*$6% &URVVRYHU 7HVWLQJ 5HSRUW´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¶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  Packet Pg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¶VSURSRUWLRQDWHVKDUHRIWKHQHWSHQVLRQOLDELOLW\ RIWKH&LW\¶VSODQRYHUWKHPHDVXUHPHQWSHULRG  7RWDO3HQVLRQ /LDELOLW\ D 3ODQ)LGXFLDU\ 1HW3RVLWLRQ E 1HW3HQVLRQ /LDELOLW\ F   D  E %DODQFHDW 9'    %DODQFHDW 0'    1HW&KDQJHVGXULQJ     ,QFUHDVH 'HFUHDVH   7KHQHWSHQVLRQOLDELOLW\RIWKHSODQLVPHDVXUHGDVRI-XQHDQGWKHWRWDOSHQVLRQ OLDELOLW\IRUWKHSODQXVHGWRFDOFXODWHWKHQHWSHQVLRQOLDELOLW\ZDVGHWHUPLQHGE\DQDFWXDULDO YDOXDWLRQ RI -XQH   UROOHG IRUZDUG WR -XQH   XVLQJ VWDQGDUG XSGDWH SURFHGXUHV7KHSURSRUWLRQRIWKHQHWSHQVLRQODELOLW\ZDVEDVHGRQDSURMHFWLRQRIWKH 'HSDUWPHQW¶VORQJWHUPVKDUHRIFRQWULEXWLRQVWRWKHSHQVLRQSODQUHODWLYHWRWKHSURMHFWHG FRQWULEXWLRQV RI DOO SDUWLFLSDWLQJ HPSOR\HUV DFWXDULDOO\ GHWHUPLQHG 7KH 'HSDUWPHQW¶V SURSRUWLRQDWHVKDUHRIWKHQHWSHQVLRQODELOLW\IRUWKHSODQDVRI-XQHDQG ZDVDVIROORZV 0LVFHOODQHRXV3ODQ 3URSRUWLRQ±-XQH  3URSRUWLRQ±-XQH  &KDQJH±,QFUHDVH 'HFUHDVH   41   Packet Pg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¶SUREDELOLW\ RIGHFUHPHQWLQJGXHWRDQHYHQWRWKHUWKDQUHFHLYLQJDFDVKUHIXQG 42   Packet Pg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  Packet Pg. 346 &,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  )257+(<($5(1'('-81(   1RWH 2WKHU3RVW(PSOR\PHQW%HQHILWV 23(%  &RQWLQXHG   E (PSOR\HHV&RYHUHG  (PSOR\HHVDUHHOLJLEOHIRUUHWLUHHKHDOWKEHQHILWVLIWKH\UHWLUHIURPWKH'HSDUWPHQWRQRU DIWHUDJHZLWKDWOHDVWRU\HDUVRIVHUYLFHGHSHQGLQJRQEDUJDLQLQJXQLWDQG DUHHOLJLEOHIRUD3(56SHQVLRQ  $VRIWKH-XQHPHDVXUHPHQWGDWHWKHIROORZLQJFXUUHQWDQGIRUPHUHPSOR\HHV ZHUHFRYHUHGE\WKHEHQHILWWHUPVXQGHUWKH23(%3ODQ  $FWLYHHPSOR\HHV  ,QDFWLYHHPSOR\HHVRUEHQHILFLDULHVFXUUHQWO\UHFHLYLQJEHQHILW V ,QDFWLYHHPSOR\HHVHQWLWOHGWREXWQRW\HWUHFHLYLQJEHQHILWV  7RWDO  F &RQWULEXWLRQV  7KHFRQWULEXWLRQUHTXLUHPHQWVRISODQPHPEHUVDQGWKH'HSDUWPHQWDUHHVWDEOLVKHGDQG PD\ EH DPHQGHG E\ WKH %RDUG 7KH UHTXLUHG FRQWULEXWLRQ LV EDVHG RQ SURMHFWHG SD\DV\RXJRILQDQFLQJUHTXLUHPHQWVZLWKDQDGGLWLRQDODPRXQWWRSUHIXQGEHQHILWVDV PD\EHGHWHUPLQHGDQQXDOO\E\WKH%RDUG7KH'HSDUWPHQWKDVHVWDEOLVKHGDQLUUHYRFDEOH WUXVWWRZKLFKSUHIXQGLQJFRQWULEXWLRQVDUHPDGH)RUWKHILVFDO\HDUHQGHG-XQH WKH'HSDUWPHQW¶VFDVKFRQWULEXWLRQVZHUHDQGWKHDPRXQWRIFRQWULEXWLRQVLQ WKHIRUPRIDQLPSOLHGVXEVLG\ZHUH  G 1HW23(%/LDELOLW\ $VVHW   7KH'HSDUWPHQW¶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  Packet Pg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¶VFRQWULEXWLRQV ZLOOEHPDGHDWUDWHVHTXDOWRWKHDFWXDULDOO\GHWHUPLQHGFRQWULEXWLRQUDWHV  %DVHGRQWKRVHDVVXPSWLRQVWKH23(%SODQ¶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  Packet Pg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  Packet Pg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¶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  Packet Pg. 350 &,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  )257+(<($5(1'('-81(   1RWH -RLQW9HQWXUHV &RQWLQXHG   E :HVW(QG:DWHU'HYHORSPHQW7UHDWPHQWDQG&RQVHUYDWLRQ-RLQW3RZHUV$XWKRULW\  2Q$XJXVWWKH&LW\RI6DQ%HUQDUGLQRMRLQHGWKH:HVW(QG:DWHU'HYHORSPHQW 7UHDWPHQWDQG&RQVHUYDWLRQ-RLQW3RZHUV$XWKRULW\ :(-3$ DVDILQDQFLQJYHKLFOHIRU FRQVWUXFWLRQRIZDWHUIDFLOLWLHV$WKUHHPHPEHUERDUGFRQVLVWLQJRIRQHUHSUHVHQWDWLYH IURPHDFKDJHQF\¶VJRYHUQLQJERG\JRYHUQVWKH:(-3$7KLVMRLQWYHQWXUHZDVIRUPHG WRSURYLGHDILQDQFLQJYHKLFOHIRUWKHWKUHHPHPEHUDJHQFLHV7KLVMRLQWYHQWXUHLVFXUUHQWO\ LQDFWLYH  1RWH &RPPLWPHQWVDQG&RQWLQJHQFLHV  D 5LVN0DQDJHPHQW  5LVNPDQDJHPHQWDFWLYLWLHVDUHUHFRUGHGLQDOOXWLOLW\IXQGV6LJQLILFDQWORVVHVDUHFRYHUHG E\LQVXUDQFHIRUDOOPDMRUHYHQWVH[FHSWZRUNHUV¶FRPSHQVDWLRQIRUZKLFKWKH'HSDUWPHQW UHWDLQVULVNRIORVVLQFRQMXQFWLRQZLWKWKH&LW\RI6DQ%HUQDUGLQR¶VULVNPDQDJHPHQW SURJUDPIRUZRUNHUVFRPSHQVDWLRQ6HWWOHPHQWDPRXQWVKDYHQRWH[FHHGHGLQVXUDQFH FRYHUDJH IRU WKH FXUUHQW \HDU RU WKHSULRU WKUHH \HDUV ,QVXUDQFHFRYHUDJHKDVEHHQ LQFUHDVHGRYHUWKHSDVWVHYHUDO\HDUV  7KH'HSDUWPHQWUHFRUGVDQHVWLPDWHGOLDELOLW\IRUZRUNHUV¶FRPSHQVDWLRQ&ODLPVOLDELOLWLHV DUHEDVHGRQHVWLPDWHVRIWKHXOWLPDWHFRVWRIUHSRUWHGFODLPVDQGDQHVWLPDWHIRUFODLPV LQFXUUHGEXWQRWUHSRUWHGEDVHGXSRQKLVWRULFDOH[SHULHQFH:RUNHUV¶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  Packet Pg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¶VDQGWKH6WDWH¶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  Packet Pg. 352 &,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  )257+(<($5(1'('-81(   1RWH &RQVHQW'HFUHH &RQWLQXHG   3XUVXDQWWRWKH&RQVHQW'HFUHHPLOOLRQLQFOXGLQJLQWHUHVWHDUQHGKDVEHHQVHWDVLGHWR EHXVHGRQO\IRU L IXQGLQJFRQVWUXFWLRQRIWUHDWPHQWDQGGLUHFWO\UHODWHGWUDQVPLVVLRQV\VWHPV WKDWH[SDQGWKH'HSDUWPHQW¶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¶VILQDQFLDOFUHGLELOLW\LQ2FWREHUWKH'HSDUWPHQWQHJRWLDWHGDQGDFFHSWHGD³SD\RXW´ LQWKHDPRXQWRIZKLFKUHSUHVHQWHGWKHSULQFLSDODQGDFFUXHGLQWHUHVWDVRIWKDW GDWH7KHVHIXQGVDUHFXUUHQWO\LQYHVWHGLQDGLYHUVLILHGSRUWIROLRPDQDJHGE\3)0$VVHW 0DQDJHPHQWDQGSUHVHQWLQPRUHGHWDLOLQ1RWH  1RWH 5HVWDWHPHQWRIQHWSRVLWLRQ  7KH 'HSDUWPHQW UHVWDWHG WKH QHW SRVLWLRQ LQ WKH 6HZHU &ROOHFWLRQ IXQG LQ WKH DPRXQW RI WKDWDURVHZKHQFRUUHFWLQJWKHFODVVLILFDWLRQRIDVVHWVDQGWKHLUXVHIXOOLYHV 50   Packet Pg. 353 5(48,5('6833/(0(17$5<,1)250$7,21 51   Packet Pg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  Packet Pg. 355                          53   Packet Pg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  Packet Pg. 357                           55   Packet Pg. 358 &,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17 5(48,5('6833/(0(17$5<,1)250$7,21 6&+('8/(2)&+$1*(6,17+(1(723(%/,$%,/,7< $66(7 $1'5(/$7('5$7,26 $62)-81()257+(/$677(1),6&$/<($56       0HDVXUHPHQW'DWH      7RWDO23(%/LDELOLW\ 6HUYLFHFRVW      ,QWHUHVW      &KDQJHVRIEHQHILWWHUPV       $FWXDOYVH[SHFWHGH[SHULHQFH       $VVXPSWLRQFKDQJHV        %HQHILWSD\PHQWV           1HWFKDQJHV       7RWDO23(%/LDELOLW\ EHJLQQLQJRI\HDU      7RWDO23(%/LDELOLW\ HQGRI\HDU  D      3ODQ)LGXFLDU\1HW3RVLWLRQ &RQWULEXWLRQVHPSOR\HU      1HWLQYHVWPHQWLQFRPH      %HQHILWSD\PHQWV           $GPLQLVWUDWLYHH[SHQVHV           1HWFKDQJHV      3ODQ)LGXFLDU\1HW3RVLWLRQEHJLQQLQJ      3ODQ)LGXFLDU\1HW3RVLWLRQHQGLQJ E      1HW23(%/LDELOLW\ $VVHWV HQGLQJ D  E       3ODQILGXFLDU\QHWSRVLWLRQDVDSHUFHQWDJHRIWKHWRWDO23(%OLDELOLW\      &RYHUHGHPSOR\HHSD\UROO       1HW23(%OLDELOLW\ DVVHW DVDSHUFHQWDJHRIFRYHUHGHPSOR\HHSD\UR      1RWHVWRWKH6FKHGXOHRI&KDQJHVLQWKH1HW23(%/LDELOLW\DQG5HODWHG5DWLRV  &RQWULEXWLRQVDUHQRWEDVHGRQHPSOR\HHFRPSHQVDWLRQWKHUHIRUHFRYHUHGHPSOR\HHSD\UROOLVXVHG %HQHILW&KDQJHV1HZKLUHVDIWHUUHFHLYHQR'HSDUWPHQWFRQWULEXWLRQV &KDQJHVRI$VVXPSWLRQV'HPRJUDSKLFDVVXPSWLRQVZHUHXSGDWHGWR&DO3(56([SHULHQFH6WXG\DVVXPHG0HGLFDO3ODQLQUHWLUHPHQWXSGDWHGWR  3DUWLFLSDWLRQSHUFHQWDWUHWLUHPHQWORZHUHG  .DLVHU0HGLFDUHWUHQGORZHUHG  0RUWDOLW\LPSURYHPHQWVFDOHZDVXSGDWHGWR6FDOH03  &XUUHQW PHGLFDOSODQDVVXPHGDWUHWLUHPHQW  $&$KLJKSUHPLXPH[FLVHWD[UHPRYHG  +LVWRULFDOLQIRUPDWLRQLVUHTXLUHGRQO\IRUWKHPHDVXUHPHQWSHULRGVIRUZKLFK*$6%LVDSSOLFDEOH)LVFDO<HDUZDVWKHILUVW\HDURILPSOHPHQWDWLRQ )XWXUH\HDUV LQIRUPDWLRQZLOOEHGLVSOD\HGXSWR\HDUVDVLQIRUPDWLRQEHFRPHVDYDLODEOH 56   Packet Pg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  Packet Pg. 360 &,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17 5(48,5('6833/(0(17$5<,1)250$7,21 6&+('8/(2)23(%3/$1,19(670(175(78516 $62)-81()257+(/$677(1),6&$/<($56  )LVFDO<HDU(QGLQJ-XQH 1HW0RQH\:HLJKWHG5DWHRI 5HWXUQ           1RWHVWR6FKHGXOH  *$6% 6WDWHPHQW 1R  ZKLFK UHTXLUHV WHQ \HDUV RI KLVWRU\ IRU WKLV VFKHGXOH ZDV LPSOHPHQWHG GXULQJ )LVFDO <HDU  $GGLWLRQDO \HDUV ZLOOEHDGGHGDVWKH\EHFRPHDYDLODEOHLQWKHIXWXUH 58   Packet Pg. 361 67$7,67,&$/6(&7,21 59   Packet Pg. 362 7+,63$*(,17(17,21$//</()7%/$1. 60   Packet Pg. 363 &/EE/>dZE^ dŚĞƐĞƐĐŚĞĚƵůĞƐĐŽŶƚĂŝŶƚƌĞŶĚŝŶĨŽƌŵĂƚŽŶƚŽŚĞůƉƚŚĞ ƌĞĂĚĞƌƵŶĚĞƌƐƚĂŶĚŚŽǁƚŚĞĞƉĂƌƚŵĞŶƚΖƐĨŝŶĂŶĐŝĂůƉĞƌĨŽƌŵĂŶĐĞ ĂŶĚǁĞůůͲďĞŝŶŐŚĂǀĞĐŚĂŶŐĞĚŽǀĞƌƚŝŵĞ͘ 61   Packet Pg. 364 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ &ŝƐĐĂůzĞĂƌ ŶĚĞĚ dŽƚĂů KƉĞƌĂƚŝŶŐ ZĞǀĞŶƵĞ dŽƚĂů KƉĞƌĂƚŝŶŐ džƉĞŶƐĞ KƉĞƌĂƚŝŶŐ /ŶĐŽŵĞ dŽƚĂůEŽŶͲ KƉĞƌĂƚŝŶŐ /ŶĐŽŵĞ ;džƉĞŶƐĞͿ dŽƚĂů ŽŶƚƌŝďƵƚĞĚ ĂƉŝƚĂů ŚĂŶŐĞƐŝŶ EĞƚWŽƐŝƚŝŽŶ ϲͬϯϬͬϮϬϭϯ ϲϭ͕ϴϴϯ͕ϲϭϱ ϱϳ͕ϯϮϳ͕ϱϯϳ ϰ͕ϱϱϲ͕Ϭϳϴ ϭ͕ϴϲϭ͕ϳϱϴ ϰ͕ϴϵϲ͕ϵϮϭ ϭϭ͕ϯϭϰ͕ϳϱϳ ϲͬϯϬͬϮϬϭϰ ϲϮ͕ϮϵϮ͕ϰϮϴ ϱϳ͕ϵϲϱ͕ϯϵϱ ϰ͕ϯϮϳ͕Ϭϯϯ ϭ͕ϯϳϱ͕ϱϯϲ ϳ͕ϱϭϬ͕ϳϳϳ ϭϯ͕Ϯϭϯ͕ϯϰϲ ϲͬϯϬͬϮϬϭϱ ϱϳ͕ϴϬϱ͕ϯϬϰ ϱϱ͕Ϭϳϰ͕ϲϲϭ Ϯ͕ϳϯϬ͕ϲϰϯ ϯ͕ϴϬϭ͕ϴϯϬ ϰ͕ϵϳϳ͕ϵϰϱ ϭϭ͕ϱϭϬ͕ϰϭϴ ϲͬϯϬͬϮϬϭϲ ϱϱ͕ϯϳϲ͕ϲϱϬ ϱϯ͕ϱϮϵ͕ϴϮϰ ϭ͕ϴϰϲ͕ϴϮϲ Ϯ͕Ϭϱϵ͕ϭϭϭ ϰ͕Ϯϳϭ͕ϯϮϱ ϴ͕ϭϳϳ͕ϮϲϮ ϲͬϯϬͬϮϬϭϳ Ύ ϲϰ͕ϰϴϴ͕ϱϴϳ ϲϭ͕ϴϵϱ͕ϴϳϮ Ϯ͕ϱϵϮ͕ϳϭϱ ϴ͕ϰϯϭ͕ϮϬϳ Ϯϭ͕ϵϵϱ͕Ϭϭϲ ϯϯ͕Ϭϭϴ͕ϵϯϴ ϲͬϯϬͬϮϬϭϴ ϳϲ͕ϲϮϬ͕ϲϮϬ ϲϴ͕ϳϯϰ͕ϵϱϴ ϳ͕ϴϴϱ͕ϲϲϮ ;ϭ͕ϴϳϮ͕ϳϭϮͿ ϰ͕ϴϱϰ͕ϳϴϰ ϭϬ͕ϴϲϳ͕ϳϯϰ ϲͬϯϬͬϮϬϭϵ ϳϳ͕Ϭϵϰ͕ϳϮϯ ϲϲ͕ϵϮϭ͕ϭϮϱ ϭϬ͕ϭϳϯ͕ϱϵϴ ;ϳ͕ϱϱϯ͕ϭϳϭͿ ϭϬ͕ϭϮϭ͕ϯϰϰ ϭϮ͕ϳϰϭ͕ϳϳϭ ϲͬϯϬͬϮϬϮϬ ϳϴ͕ϭϴϰ͕ϲϵϴ ϳϬ͕ϳϳϴ͕ϵϴϳ ϳ͕ϰϬϱ͕ϳϭϭ ϳϰϴ͕Ϯϭϯ ϰ͕ϲϬϰ͕ϲϵϵ ϭϮ͕ϳϱϴ͕ϲϮϯ ϲͬϯϬͬϮϬϮϭ ϴϬ͕ϴϯϭ͕ϰϲϳ ϳϳ͕Ϯϰϳ͕ϰϮϴ ϯ͕ϱϴϰ͕Ϭϯϵ ;ϭ͕ϵϴϬ͕ϬϰϯͿ ϲ͕ϲϬϱ͕ϱϱϲ ϴ͕ϮϬϵ͕ϱϱϮ ϲͬϯϬͬϮϬϮϮ ϴϯ͕ϱϭϳ͕ϯϰϭ ϳϮ͕ϭϬϵ͕ϵϯϱ ϭϭ͕ϰϬϳ͕ϰϬϲ ;Ϯ͕ϯϭϱ͕ϮϳϵͿ ϴ͕Ϭϳϭ͕ϵϰϰ ϭϳ͕ϭϲϰ͕Ϭϳϭ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ Ύ&ŝƐĐĂůzĞĂƌƐϮϬϬϵͲϮϬϭϲĐŽŶƚĂŝŶŽŶůLJƚŚĞ^ĞǁĞƌdƌĞĂƚŵĞŶƚĂŶĚtĂƚĞƌhƚŝůŝƚLJ&ƵŶĚƐ͘dŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶƐ&ƵŶĚ ǁĂƐƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚĞĞƉĂƌƚŵĞŶƚŽŶDĂLJϭ͕ϮϬϭϳ͘ Ͳ ϱ͕ϬϬϬ ϭϬ͕ϬϬϬ ϭϱ͕ϬϬϬ ϮϬ͕ϬϬϬ Ϯϱ͕ϬϬϬ ϯϬ͕ϬϬϬ ϯϱ͕ϬϬϬ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮd,Kh^E^ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶͲ ŽŵďŝŶĞĚ&ƵŶĚƐ ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶ 62   Packet Pg. 365 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ tĂƚĞƌ&ƵŶĚ ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ &ŝƐĐĂůzĞĂƌ ŶĚĞĚ dŽƚĂů KƉĞƌĂƚŝŶŐ ZĞǀĞŶƵĞ dŽƚĂů KƉĞƌĂƚŝŶŐ džƉĞŶƐĞ KƉĞƌĂƚŝŶŐ /ŶĐŽŵĞ dŽƚĂůEŽŶͲ KƉĞƌĂƚŝŶŐ /ŶĐŽŵĞ ;džƉĞŶƐĞͿ dŽƚĂů ŽŶƚƌŝďƵƚĞĚ ĂƉŝƚĂů ŚĂŶŐĞƐŝŶ EĞƚWŽƐŝƚŝŽŶ ϲͬϯϬͬϮϬϭϯ ϯϳ͕ϴϲϴ͕ϴϰϲ ϯϳ͕ϰϯϬ͕ϮϮϰ ϰϯϴ͕ϲϮϮ Ϯ͕ϰϵϮ͕ϰϰϴ ϯ͕ϰϮϭ͕ϱϮϭ ϲ͕ϯϱϮ͕ϱϵϭ ϲͬϯϬͬϮϬϭϰ ϯϲ͕ϲϳϭ͕ϵϬϯ ϯϲ͕Ϭϰϭ͕ϲϭϲ ϲϯϬ͕Ϯϴϳ Ϯ͕ϱϬϰ͕ϳϬϱ ϲ͕ϱϮϭ͕ϲϬϭ ϵ͕ϲϱϲ͕ϱϵϯ ϲͬϯϬͬϮϬϭϱ ϯϯ͕ϭϮϭ͕ϭϮϴ ϯϱ͕ϱϬϰ͕ϱϴϮ ;Ϯ͕ϯϴϯ͕ϰϱϰͿ Ϯ͕ϳϬϮ͕ϵϱϯ ϯ͕ϵϬϱ͕ϭϬϰ ϰ͕ϮϮϰ͕ϲϬϯ ϲͬϯϬͬϮϬϭϲ ϯϬ͕ϬϬϭ͕ϴϳϭ ϯϰ͕ϴϯϰ͕ϯϲϮ ;ϰ͕ϴϯϮ͕ϰϵϭͿ Ϯ͕Ϯϴϯ͕ϮϯϬ Ϯ͕ϴϭϮ͕ϭϵϮ ϮϲϮ͕ϵϯϭ ϲͬϯϬͬϮϬϭϳ ϯϯ͕ϯϱϴ͕ϵϬϳ ϯϳ͕Ϭϳϰ͕ϲϳϬ ;ϯ͕ϳϭϱ͕ϳϲϯͿ ;ϱϰϲ͕ϮϴϬͿ Ϯ͕ϭϵϰ͕Ϭϵϯ ;Ϯ͕Ϭϲϳ͕ϵϱϬͿ ϲͬϯϬͬϮϬϭϴ ϯϴ͕ϮϴϬ͕Ϭϭϲ ϯϰ͕ϰϰϲ͕ϭϬϱ ϯ͕ϴϯϯ͕ϵϭϭ ϭ͕ϭϵϴ͕ϭϲϭ ϯ͕ϯϮϯ͕Ϭϯϭ ϴ͕ϯϱϱ͕ϭϬϯ ϲͬϯϬͬϮϬϭϵ ϯϵ͕Ϭϵϵ͕ϵϲϬ ϯϯ͕ϵϵϱ͕Ϭϯϳ ϱ͕ϭϬϰ͕ϵϮϯ ϭ͕ϴϮϵ͕ϰϰϴ Ϯ͕ϳϯϳ͕Ϭϯϭ ϵ͕ϲϳϭ͕ϰϬϮ ϲͬϯϬͬϮϬϮϬ ϰϬ͕Ϯϲϳ͕ϯϳϲ ϯϴ͕ϲϮϲ͕ϭϱϭ ϭ͕ϲϰϭ͕ϮϮϱ ϭ͕ϲϱϱ͕ϲϮϴ Ϯ͕ϬϬϮ͕ϲϯϳ ϱ͕Ϯϵϵ͕ϰϵϬ ϲͬϯϬͬϮϬϮϭ ϰϮ͕ϳϱϴ͕ϭϵϮ ϰϮ͕ϰϴϬ͕ϴϱϱ Ϯϳϳ͕ϯϯϳ ϳϵϭ͕ϱϮϳ ϯ͕ϴϲϭ͕ϬϭϬ ϰ͕ϵϮϵ͕ϴϳϰ ϲͬϯϬͬϮϬϮϮ ϰϯ͕ϭϱϬ͕ϭϮϰ ϯϳ͕ϲϮϲ͕Ϭϰϲ ϱ͕ϱϮϰ͕Ϭϳϴ ϰϴϯ͕ϵϲϭ ϰ͕ϳϭϴ͕ϴϲϰ ϭϬ͕ϳϮϲ͕ϵϬϯ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ ;ϯ͕ϬϬϬͿ ;ϭ͕ϬϬϬͿ ϭ͕ϬϬϬ ϯ͕ϬϬϬ ϱ͕ϬϬϬ ϳ͕ϬϬϬ ϵ͕ϬϬϬ ϭϭ͕ϬϬϬ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮd,Kh^E^ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶͲtĂƚĞƌ&ƵŶĚ ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶ 63   Packet Pg. 366 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ ^ĞǁĞƌ&ƵŶĚ ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ &ŝƐĐĂůzĞĂƌ ŶĚĞĚ dŽƚĂů KƉĞƌĂƚŝŶŐ ZĞǀĞŶƵĞ dŽƚĂů KƉĞƌĂƚŝŶŐ džƉĞŶƐĞ KƉĞƌĂƚŝŶŐ /ŶĐŽŵĞ dŽƚĂůEŽŶͲ KƉĞƌĂƚŝŶŐ /ŶĐŽŵĞ ;džƉĞŶƐĞͿ dŽƚĂů ŽŶƚƌŝďƵƚĞĚ ĂƉŝƚĂů ŚĂŶŐĞƐŝŶ EĞƚWŽƐŝƚŝŽŶ ϲͬϯϬͬϮϬϭϯ Ϯϲ͕ϰϭϰ͕ϲϱϯ ϮϮ͕Ϯϵϳ͕ϭϵϳ ϰ͕ϭϭϳ͕ϰϱϲ ;ϲϯϬ͕ϲϵϬͿ ϭ͕ϰϳϱ͕ϰϬϬ ϰ͕ϵϲϮ͕ϭϲϲ ϲͬϯϬͬϮϬϭϰ Ϯϱ͕ϲϳϬ͕ϳϳϰ Ϯϭ͕ϵϳϰ͕ϬϮϴ ϯ͕ϲϵϲ͕ϳϰϲ ;ϭ͕ϭϮϵ͕ϭϲϵͿ ϵϴϵ͕ϭϳϲ ϯ͕ϱϱϲ͕ϳϱϯ ϲͬϯϬͬϮϬϭϱ Ϯϰ͕ϳϯϰ͕ϰϮϱ ϭϵ͕ϲϮϬ͕ϯϮϴ ϱ͕ϭϭϰ͕Ϭϵϳ ϭ͕Ϭϵϴ͕ϴϳϳ ϭ͕ϬϳϮ͕ϴϰϭ ϳ͕Ϯϴϱ͕ϴϭϱ ϲͬϯϬͬϮϬϭϲ Ϯϱ͕ϰϭϬ͕ϳϰϬ ϭϴ͕ϳϯϭ͕ϰϮϯ ϲ͕ϲϳϵ͕ϯϭϳ ;ϮϮϰ͕ϭϭϵͿ ϭ͕ϰϱϵ͕ϭϯϯ ϳ͕ϵϭϰ͕ϯϯϭ ϲͬϯϬͬϮϬϭϳ Ϯϴ͕ϲϭϮ͕Ϭϭϵ Ϯϰ͕ϭϯϵ͕ϴϳϴ ϰ͕ϰϳϮ͕ϭϰϭ ;ϯ͕ϲϮϰ͕ϲϱϴͿ ϭ͕ϯϱϱ͕ϰϵϰ Ϯ͕ϮϬϮ͕ϵϳϳ ϲͬϯϬͬϮϬϭϴ ϯϬ͕ϳϯϯ͕ϰϱϯ ϮϮ͕ϲϵϳ͕ϰϵϭ ϴ͕Ϭϯϱ͕ϵϲϮ ;ϯ͕Ϯϳϱ͕ϳϬϰͿ ϭ͕ϮϴϬ͕ϮϴϬ ϲ͕ϬϰϬ͕ϱϯϴ ϲͬϯϬͬϮϬϭϵ ϯϬ͕ϱϰϲ͕ϭϴϭ Ϯϰ͕ϴϲϲ͕ϲϴϭ ϱ͕ϲϳϵ͕ϱϬϬ ;ϵ͕ϵϲϳ͕ϯϬϵͿ ϳ͕ϬϵϮ͕ϳϴϱ Ϯ͕ϴϬϰ͕ϵϳϲ ϲͬϯϬͬϮϬϮϬ ϯϬ͕ϯϵϳ͕ϬϵϮ Ϯϰ͕ϲϰϴ͕ϰϭϭ ϱ͕ϳϰϴ͕ϲϴϭ ;ϭ͕ϱϯϳ͕ϭϳϵͿ Ϯ͕Ϯϱϳ͕ϯϯϬ ϲ͕ϰϲϴ͕ϴϯϮ ϲͬϯϬͬϮϬϮϭ ϯϬ͕ϯϲϭ͕ϭϭϲ Ϯϲ͕ϵϴϲ͕ϯϴϱ ϯ͕ϯϳϰ͕ϳϯϭ ;Ϯ͕ϳϴϮ͕ϰϴϭͿ Ϯ͕ϱϬϮ͕Ϯϲϯ ϯ͕Ϭϵϰ͕ϱϭϯ ϲͬϯϬͬϮϬϮϮ ϯϰ͕ϭϳϭ͕ϭϲϬ Ϯϲ͕ϳϵϰ͕ϯϵϬ ϳ͕ϯϳϲ͕ϳϳϬ ;Ϯ͕Ϯϴϴ͕ϬϬϲͿ Ϯ͕Ϯϵϰ͕ϱϰϭ ϳ͕ϯϴϯ͕ϯϬϱ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ ;Ϯ͕ϬϬϬͿ Ͳ Ϯ͕ϬϬϬ ϰ͕ϬϬϬ ϲ͕ϬϬϬ ϴ͕ϬϬϬ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮd,Kh^E^ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶͲ^ĞǁĞƌ&ƵŶĚ ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶ 64   Packet Pg. 367 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ ^ĞǁĞƌŽůůĞĐƚŝŽŶ&ƵŶĚ ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ &ŝƐĐĂůzĞĂƌ ŶĚĞĚ dŽƚĂů KƉĞƌĂƚŝŶŐ ZĞǀĞŶƵĞ dŽƚĂů KƉĞƌĂƚŝŶŐ džƉĞŶƐĞ KƉĞƌĂƚŝŶŐ /ŶĐŽŵĞ dŽƚĂůEŽŶͲ KƉĞƌĂƚŝŶŐ /ŶĐŽŵĞ ;džƉĞŶƐĞͿ dŽƚĂů ŽŶƚƌŝďƵƚĞĚ ĂƉŝƚĂů ŚĂŶŐĞƐŝŶ EĞƚWŽƐŝƚŝŽŶ ϲͬϯϬͬϮϬϭϯ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ϲͬϯϬͬϮϬϭϰ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ϲͬϯϬͬϮϬϭϱ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ϲͬϯϬͬϮϬϭϲ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ϲͬϯϬͬϮϬϭϳ Ύ Ϯ͕ϴϵϭ͕ϮϬϯ ϭ͕Ϭϱϰ͕ϴϲϲ ϭ͕ϴϯϲ͕ϯϯϳ ϭϮ͕ϲϬϮ͕ϭϰϱ ϭϴ͕ϰϰϱ͕ϰϮϵ ϯϮ͕ϴϴϯ͕ϵϭϭ ϲͬϯϬͬϮϬϭϴ ϳ͕ϲϴϮ͕ϵϰϲ ϭϭ͕ϲϲϳ͕ϭϱϳ ;ϯ͕ϵϴϰ͕ϮϭϭͿ ϮϬϰ͕ϴϯϭ Ϯϱϭ͕ϰϳϯ ;ϯ͕ϱϮϳ͕ϵϬϳͿ ϲͬϯϬͬϮϬϭϵ ϳ͕ϱϲϮ͕Ϭϵϳ ϴ͕ϭϳϮ͕ϵϮϮ ;ϲϭϬ͕ϴϮϱͿ ϱϴϰ͕ϲϵϬ Ϯϵϭ͕ϱϮϴ Ϯϲϱ͕ϯϵϯ ϲͬϯϬͬϮϬϮϬ ϳ͕ϲϲϲ͕ϯϬϵ ϳ͕ϲϱϬ͕ϱϬϰ ϭϱ͕ϴϬϱ ϲϮϵ͕ϳϲϰ ϯϰϰ͕ϳϯϮ ϵϵϬ͕ϯϬϭ ϲͬϯϬͬϮϬϮϭ ϳ͕ϳϵϰ͕ϰϭϴ ϳ͕ϴϲϮ͕ϰϰϳ ;ϲϴ͕ϬϮϵͿ ϭϬ͕ϵϭϭ ϮϰϮ͕Ϯϴϯ ϭϴϱ͕ϭϲϱ ϲͬϯϬͬϮϬϮϮ ϲ͕ϯϵϰ͕ϲϮϯ ϳ͕ϴϴϴ͕Ϭϲϱ ;ϭ͕ϰϵϯ͕ϰϰϮͿ ;ϱϭϭ͕ϮϯϰͿ ϭ͕Ϭϱϴ͕ϱϯϵ ;ϵϰϲ͕ϭϯϳͿ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ ΎdŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶhƚŝůŝƚLJǁĂƐƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚĞtĂƚĞƌĞƉĂƌƚŵĞŶƚŽŶDĂLJϭ͕ϮϬϭϳƐŽƉƌŝŽƌLJĞĂƌĚĂƚĂŝƐ ƵŶĂǀĂŝůĂďůĞ͘ ;ϱ͕ϬϬϬͿ Ͳ ϱ͕ϬϬϬ ϭϬ͕ϬϬϬ ϭϱ͕ϬϬϬ ϮϬ͕ϬϬϬ Ϯϱ͕ϬϬϬ ϯϬ͕ϬϬϬ ϯϱ͕ϬϬϬ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮd,Kh^E^ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶͲ^ĞǁĞƌŽůůĞĐƚŝŽŶ&ƵŶĚ ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶ 65   Packet Pg. 368 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ EĞƚWŽƐŝƚŝŽŶďLJŽŵƉŽŶĞŶƚ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ &ŝƐĐĂůzĞĂƌ ŶĚĞĚ EĞƚ/ŶǀĞƐƚŵĞŶƚŝŶ ĂƉŝƚĂůƐƐĞƚƐ ZĞƐƚƌŝĐƚĞĚEĞƚ WŽƐŝƚŝŽŶ hŶƌĞƐƚƌŝĐƚĞĚ EĞƚWŽƐŝƚŝŽŶ dŽƚĂůEĞƚ WŽƐŝƚŝŽŶ ϲͬϯϬͬϮϬϭϯ ϮϬϬ͕ϬϳϮ͕ϵϰϮ ϳ͕ϳϵϵ͕ϳϳϯ ϲϵ͕ϯϭϱ͕ϭϳϭ Ϯϳϳ͕ϭϴϳ͕ϴϴϲ ϲͬϯϬͬϮϬϭϰ ϮϬϲ͕ϲϲϯ͕ϱϲϳ ϳ͕ϱϭϱ͕ϲϱϴ ϲϲ͕ϱϮϰ͕ϱϴϵ ϮϴϬ͕ϳϬϯ͕ϴϭϰ ϲͬϯϬͬϮϬϭϱ ϮϮϯ͕Ϭϱϯ͕Ϯϲϵ ϳ͕ϲϯϯ͕Ϭϰϵ ϭϮ͕ϱϭϬ͕ϵϲϵ Ϯϰϯ͕ϭϵϳ͕Ϯϴϳ Ͳ ϲͬϯϬͬϮϬϭϲ Ϯϯϱ͕ϲϳϬ͕Ϭϳϯ ϳ͕ϴϭϰ͕Ϭϴϲ ϳ͕ϴϵϬ͕ϯϵϬ Ϯϱϭ͕ϯϳϰ͕ϱϰϵ ϲͬϯϬͬϮϬϭϳ Ύ ϮϱϬ͕ϯϵϵ͕ϰϴϭ ϳ͕ϵϰϰ͕ϳϱϴ Ϯϲ͕Ϭϰϵ͕Ϯϰϴ Ϯϴϰ͕ϯϵϯ͕ϰϴϳ ϲͬϯϬͬϮϬϭϴ Ϯϰϴ͕ϲϱϯ͕ϵϲϯ ϴ͕ϯϲϯ͕Ϭϯϳ Ϯϯ͕ϵϭϮ͕ϯϭϭ ϮϴϬ͕ϵϮϵ͕ϯϭϭ ϲͬϯϬͬϮϬϭϵ Ϯϱϵ͕ϲϳϭ͕ϰϵϴ Ͳ ϯϯ͕ϵϵϵ͕ϴϵϰ Ϯϵϯ͕ϲϳϭ͕ϯϵϮ ϲͬϯϬͬϮϬϮϬ Ϯϱϱ͕ϮϳϬ͕ϳϮϬ Ͳ ϱϭ͕ϭϱϴ͕ϵϴϱ ϯϬϲ͕ϰϮϵ͕ϳϬϱ ϲͬϯϬͬϮϬϮϭ Ϯϱϯ͕Ϯϴϴ͕ϳϯϮ Ͳ ϲϭ͕ϯϱϬ͕ϱϮϱ ϯϭϰ͕ϲϯϵ͕Ϯϱϳ ϲͬϯϬͬϮϬϮϮ ϮϱϬ͕Ϯϭϲ͕ϳϱϮ ϴϭ͕ϴϬϰ͕ϭϲϴ ϯϯϮ͕ϬϮϬ͕ϵϮϬ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ Ύ&ŝƐĐĂůzĞĂƌƐϮϬϬϵͲϮϬϭϲĐŽŶƚĂŝŶŽŶůLJ^ĞǁĞƌdƌĞĂƚŵĞŶƚĂŶĚtĂƚĞƌhƚŝůŝƚLJ&ƵŶĚƐ͘dŚĞ^ĞǁĞƌ ŽůůĞĐƚŝŽŶƐ&ƵŶĚǁĂƐƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚĞĞƉĂƌƚŵĞŶƚŽŶDĂLJϭ͕ϮϬϭϳ͘ Ͳ ϱϬ͕ϬϬϬ ϭϬϬ͕ϬϬϬ ϭϱϬ͕ϬϬϬ ϮϬϬ͕ϬϬϬ ϮϱϬ͕ϬϬϬ ϯϬϬ͕ϬϬϬ ϯϱϬ͕ϬϬϬ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮd,Kh^E^EdWK^/d/KEzKDWKEEd KD/E;/EϭϬϬϬ^Ϳ EĞƚ/ŶǀĞƐƚŵĞŶƚŝŶĂƉŝƚĂůƐƐĞƚƐ ZĞƐƚƌŝĐƚĞĚEĞƚWŽƐŝƚŝŽŶ hŶƌĞƐƚƌŝĐƚĞĚEĞƚWŽƐŝƚŝŽŶ 66   Packet Pg. 369 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ EĞƚWŽƐŝƚŝŽŶďLJŽŵƉŽŶĞŶƚͲtĂƚĞƌ&ƵŶĚ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ &ŝƐĐĂůzĞĂƌ ŶĚĞĚ EĞƚ/ŶǀĞƐƚŵĞŶƚŝŶ ĂƉŝƚĂůƐƐĞƚƐ ZĞƐƚƌŝĐƚĞĚEĞƚ WŽƐŝƚŝŽŶ hŶƌĞƐƚƌŝĐƚĞĚEĞƚ WŽƐŝƚŝŽŶ dŽƚĂůEĞƚ WŽƐŝƚŝŽŶ ϲͬϯϬͬϮϬϭϯ ϭϱϲ͕ϳϱϴ͕ϭϮϳŶͬĂ ϭϮ͕ϭϯϯ͕ϵϬϰ ϭϲϴ͕ϴϵϮ͕Ϭϯϭ ϲͬϯϬͬϮϬϭϰ ϭϲϯ͕ϳϵϳ͕ϮϴϯŶͬĂ ϭϭ͕ϳϮϴ͕Ϭϳϭ ϭϳϱ͕ϱϮϱ͕ϯϱϰ ϲͬϯϬͬϮϬϭϱ ϭϲϲ͕ϵϲϯ͕ϮϯϴŶͬĂ ;ϭϱ͕ϭϱϮ͕ϵϯϳͿ ϭϱϭ͕ϴϭϬ͕ϯϬϭ ϲͬϯϬͬϮϬϭϲ ϭϲϵ͕ϳϯϬ͕ϵϵϴŶͬĂ ;ϭϳ͕ϲϱϳ͕ϳϲϲͿ ϭϱϮ͕Ϭϳϯ͕ϮϯϮ ϲͬϯϬͬϮϬϭϳ ϭϲϵ͕ϱϲϵ͕ϳϰϲŶͬĂ ;ϭϵ͕ϱϲϰ͕ϰϲϰͿ ϭϱϬ͕ϬϬϱ͕ϮϴϮ ϲͬϯϬͬϮϬϭϴ ϭϳϭ͕ϳϵϰ͕ϬϯϭŶͬĂ ;ϮϬ͕ϲϵϵ͕ϬϲϲͿ ϭϱϭ͕Ϭϵϰ͕ϵϲϱ ϲͬϯϬͬϮϬϭϵ ϭϳϳ͕ϭϱϴ͕ϱϯϱŶͬĂ ;ϭϲ͕ϯϵϭ͕ϴϱϴͿ ϭϲϬ͕ϳϲϲ͕ϲϳϳ ϲͬϯϬͬϮϬϮϬ ϭϲϴ͕ϵϵϮ͕ϭϮϭŶͬĂ ;Ϯ͕ϵϮϲ͕ϮϲϰͿ ϭϲϲ͕Ϭϲϱ͕ϴϱϳ ϲͬϯϬͬϮϬϮϭ ϭϲϴ͕ϱϱϯ͕ϵϭϳŶͬĂ Ϯ͕ϰϰϭ͕ϴϭϰ ϭϳϬ͕ϵϵϱ͕ϳϯϭ ϲͬϯϬͬϮϬϮϮ ϭϲϴ͕Ϭϲϱ͕ϭϵϲŶͬĂ ϭϯ͕ϳϬϳ͕ϰϯϵ ϭϴϭ͕ϳϳϮ͕ϲϯϱ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ ;ϱϬ͕ϬϬϬͿ Ͳ ϱϬ͕ϬϬϬ ϭϬϬ͕ϬϬϬ ϭϱϬ͕ϬϬϬ ϮϬϬ͕ϬϬϬ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮd,Kh^E^EdWK^/d/KEzKDWKEEd͗ tdZ&hE;/EϭϬϬϬ^Ϳ EĞƚ/ŶǀĞƐƚŵĞŶƚŝŶĂƉŝƚĂůƐƐĞƚƐ ZĞƐƚƌŝĐƚĞĚEĞƚWŽƐŝƚŝŽŶ hŶƌĞƐƚƌŝĐƚĞĚEĞƚWŽƐŝƚŝŽŶ 67   Packet Pg. 370 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ EĞƚWŽƐŝƚŝŽŶďLJŽŵƉŽŶĞŶƚͲ^ĞǁĞƌ&ƵŶĚ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ &ŝƐĐĂůzĞĂƌ ŶĚĞĚ EĞƚ/ŶǀĞƐƚŵĞŶƚŝŶ ĂƉŝƚĂůƐƐĞƚƐ ZĞƐƚƌŝĐƚĞĚEĞƚ WŽƐŝƚŝŽŶ hŶƌĞƐƚƌŝĐƚĞĚ EĞƚWŽƐŝƚŝŽŶ dŽƚĂůEĞƚ WŽƐŝƚŝŽŶ ϲͬϯϬͬϮϬϭϯ ϰϯ͕ϯϭϰ͕ϴϭϱ ϳ͕ϳϵϵ͕ϳϯϯ ϱϳ͕ϭϴϭ͕Ϯϲϳ ϭϬϴ͕Ϯϵϱ͕ϴϭϱ ϲͬϯϬͬϮϬϭϰ ϰϮ͕ϴϲϲ͕Ϯϴϰ ϳ͕ϱϭϱ͕ϲϱϴ ϱϰ͕ϳϵϲ͕ϱϭϴ ϭϬϱ͕ϭϳϴ͕ϰϲϬ ϲͬϯϬͬϮϬϭϱ ϱϲ͕ϬϵϬ͕Ϭϯϭ ϳ͕ϲϯϯ͕Ϭϰϵ Ϯϳ͕ϲϲϯ͕ϵϬϲ ϵϭ͕ϯϴϲ͕ϵϴϲ ϲͬϯϬͬϮϬϭϲ ϲϱ͕ϵϯϵ͕Ϭϳϱ ϳ͕ϴϭϰ͕Ϭϴϲ Ϯϱ͕ϱϰϴ͕ϭϱϲ ϵϵ͕ϯϬϭ͕ϯϭϳ ϲͬϯϬͬϮϬϭϳ ϲϮ͕ϲϯϯ͕ϳϴϯ ϳ͕ϵϰϰ͕ϳϱϴ ϯϬ͕ϵϮϱ͕ϳϱϯ ϭϬϭ͕ϱϬϰ͕Ϯϵϰ ϲͬϯϬͬϮϬϭϴ ϱϵ͕Ϭϭϭ͕ϭϬϵ ϴ͕ϯϲϯ͕Ϭϯϳ ϯϯ͕Ϭϰϭ͕ϭϴϭ ϭϬϬ͕ϰϭϱ͕ϯϮϳ ϲͬϯϬͬϮϬϭϵ ϲϯ͕Ϯϰϯ͕ϬϯϯŶͬĂ ϰϬ͕ϬϰϬ͕Ϯϴϱ ϭϬϯ͕Ϯϴϯ͕ϯϭϴ ϲͬϯϬͬϮϬϮϬ ϲϲ͕ϵϬϲ͕ϴϳϰŶͬĂ ϰϮ͕ϴϰϱ͕Ϯϳϲ ϭϬϵ͕ϳϱϮ͕ϭϱϬ ϲͬϯϬͬϮϬϮϭ ϲϰ͕ϲϱϬ͕ϱϰϬŶͬĂ ϰϴ͕ϭϵϲ͕ϭϮϯ ϭϭϮ͕ϴϰϲ͕ϲϲϯ ϲͬϯϬͬϮϬϮϮ ϲϬ͕ϴϱϯ͕ϰϳϮŶͬĂ ϱϵ͕Ϯϱϭ͕ϯϮϬ ϭϮϬ͕ϭϬϰ͕ϳϵϮ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ Ͳ ϮϬ͕ϬϬϬ ϰϬ͕ϬϬϬ ϲϬ͕ϬϬϬ ϴϬ͕ϬϬϬ ϭϬϬ͕ϬϬϬ ϭϮϬ͕ϬϬϬ ϭϰϬ͕ϬϬϬ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮd,Kh^E^EdWK^/d/KEzKDWKEEd͗ ^tZ&hE;/EϭϬϬϬ^Ϳ EĞƚ/ŶǀĞƐƚŵĞŶƚŝŶĂƉŝƚĂůƐƐĞƚƐ ZĞƐƚƌŝĐƚĞĚEĞƚWŽƐŝƚŝŽŶ hŶƌĞƐƚƌŝĐƚĞĚEĞƚWŽƐŝƚŝŽŶ 68   Packet Pg. 371 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ EĞƚWŽƐŝƚŝŽŶďLJŽŵƉŽŶĞŶƚͲ^ĞǁĞƌŽůůĞĐƚŝŽŶ&ƵŶĚ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ &ŝƐĐĂůzĞĂƌ ŶĚĞĚ EĞƚ/ŶǀĞƐƚŵĞŶƚŝŶ ĂƉŝƚĂůƐƐĞƚƐ ZĞƐƚƌŝĐƚĞĚEĞƚ WŽƐŝƚŝŽŶ hŶƌĞƐƚƌŝĐƚĞĚ EĞƚWŽƐŝƚŝŽŶ dŽƚĂůEĞƚ WŽƐŝƚŝŽŶ ϲͬϯϬͬϮϬϭϯ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ϲͬϯϬͬϮϬϭϰ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ϲͬϯϬͬϮϬϭϱ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ϲͬϯϬͬϮϬϭϲ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ϲͬϯϬͬϮϬϭϳ Ύ ϭϴ͕ϭϵϱ͕ϵϱϮŶͬĂ ϭϰ͕ϲϴϳ͕ϵϱϵ ϯϮ͕ϴϴϯ͕ϵϭϭ ϲͬϯϬͬϮϬϭϴ ϭϳ͕ϴϰϴ͕ϴϮϯŶͬĂ ϭϭ͕ϱϬϳ͕ϭϴϭ Ϯϵ͕ϯϱϲ͕ϬϬϰ ϲͬϯϬͬϮϬϭϵ ϭϵ͕Ϯϲϵ͕ϵϯϬŶͬĂ ϭϬ͕ϯϱϭ͕ϰϲϳϮϵ͕ϲϮϭ͕ϯϵϳ ϲͬϯϬͬϮϬϮϬ ϭϵ͕ϯϳϭ͕ϳϮϱŶͬĂ ϭϭ͕Ϯϯϵ͕ϵϳϯ ϯϬ͕ϲϭϭ͕ϲϵϴ ϲͬϯϬͬϮϬϮϭ ϮϬ͕Ϭϴϰ͕ϮϳϱŶͬĂ ϭϬ͕ϳϭϮ͕ϱϴϴ ϯϬ͕ϳϵϲ͕ϴϲϯ ϲͬϯϬͬϮϬϮϮ Ϯϭ͕Ϯϵϴ͕ϬϴϰŶͬĂ ϴ͕ϴϵϱ͕ϰϭϬϯϬ͕ϭϵϯ͕ϰϵϰ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ ΎdŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶhƚŝůŝƚLJǁĂƐƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚĞtĂƚĞƌĞƉĂƌƚŵĞŶƚŽŶDĂLJϭ͕ϮϬϭϳƐŽƉƌŝŽƌ LJĞĂƌĚĂƚĂŝƐƵŶĂǀĂŝůĂďůĞ͘ Ͳ ϱ͕ϬϬϬ ϭϬ͕ϬϬϬ ϭϱ͕ϬϬϬ ϮϬ͕ϬϬϬ Ϯϱ͕ϬϬϬ ϯϬ͕ϬϬϬ ϯϱ͕ϬϬϬ ϮϬϭϯϮϬϭϰϮϬϭϱϮϬϭϲϮϬϭϳϮϬϭϴϮϬϭϵϮϬϮϬϮϬϮϭϮϬϮϮd,Kh^E^EdWK^/d/KEzKDWKEEd͗^tZ K>>d/KE&hE;/EϭϬϬϬ^Ϳ EĞƚ/ŶǀĞƐƚŵĞŶƚŝŶĂƉŝƚĂůƐƐĞƚƐ ZĞƐƚƌŝĐƚĞĚEĞƚWŽƐŝƚŝŽŶ hŶƌĞƐƚƌŝĐƚĞĚEĞƚWŽƐŝƚŝŽŶ 69   Packet Pg. 372 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ tĂƚĞƌ&ƵŶĚZĞǀĞŶƵĞďLJdLJƉĞ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ &ŝƐĐĂůzĞĂƌ ŶĚĞĚ tĂƚĞƌ^ĂůĞƐ ^ĞƌǀŝĐĞ ŚĂƌŐĞƐͬ&ĞĞƐ KƚŚĞƌ ^ĞƌǀŝĐĞƐ dŽƚĂůKƉĞƌĂƚŝŶŐ ZĞǀĞŶƵĞ /ŶƚĞƌĞƐƚ /ŶĐŽŵĞ ZĞŶƚĂů /ŶĐŽŵĞ KƚŚĞƌ/ŶĐŽŵĞ 'ĂŝŶŽŶĂƐƐĞƚ ĚŝƐƉŽƐŝƚŝŽŶ EŽŶĐĂƉŝƚĂů ŐƌĂŶƚĨƵŶĚƐ dŽƚĂůEŽŶ KƉĞƌĂƚŝŶŐ /ŶĐŽŵĞ ϲͬϯϬͬϮϬϭϯ ϯϰ͕ϮϱϮ͕ϯϱϳ ϯ͕ϰϳϲ͕Ϭϲϭ ϭϰϬ͕ϰϮϵ ϯϳ͕ϴϲϴ͕ϴϰϲ Ͳ ϭϮϮ͕ϴϮϲ Ϯϭϭ͕ϬϯϮ Ͳ ϯ͕ϭϭϬ͕ϮϬϭ ϯ͕ϰϰϰ͕Ϭϱϵ ϲͬϯϬͬϮϬϭϰ ϯϰ͕ϳϳϳ͕ϭϭϮ ϭ͕ϳϱϰ͕ϲϭϰ ϭϰϬ͕ϭϳϲ ϯϲ͕ϲϳϭ͕ϵϬϯ ϵϯ͕ϰϮϴ ϭϲϬ͕Ϭϴϵ ϰϳϴ͕ϱϭϮ ϰ͕ϰϰϲ Ϯ͕ϬϯϬ͕Ϭϲϲ Ϯ͕ϳϲϲ͕ϱϰϭ ϲͬϯϬͬϮϬϭϱ ϯϭ͕Ϯϭϳ͕ϱϯϰ ϭ͕ϳϴϵ͕ϲϱϰ ϭϭϯ͕ϵϰϬ ϯϯ͕ϭϮϭ͕ϭϮϴ ϱϰ͕ϳϴϲ ϭϴϭ͕ϴϬϵ ϱϰϱ͕ϴϰϬ Ͳ Ϯ͕Ϭϴϵ͕ϲϯϳ Ϯ͕ϴϳϮ͕ϬϳϮ ϲͬϯϬͬϮϬϭϲ Ϯϴ͕Ϯϵϯ͕ϳϵϬ ϭ͕ϲϬϰ͕ϰϳϮ ϭϬϯ͕ϲϬϵ ϯϬ͕ϬϬϭ͕ϴϳϭ ϲϯ͕ϱϲϲ ϭϯϰ͕ϴϰϱ ϰϵϱ͕Ϯϵϴ Ͳ ϭ͕ϲϵϲ͕Ϯϭϵ Ϯ͕ϯϴϵ͕ϵϮϴ ϲͬϯϬͬϮϬϭϳ ϯϭ͕ϴϵϯ͕ϮϬϵ ϭ͕ϯϰϳ͕ϵϵϯ ϭϭϳ͕ϳϬϱ ϯϯ͕ϯϱϴ͕ϵϬϳ ϯϭ͕ϱϬϰ ϮϬϯ͕ϭϴϲ ϯϬϭ͕ϴϯϯ Ͳ Ϯ͕Ϭϰϳ͕ϵϰϲ Ϯ͕ϱϴϰ͕ϰϲϵ ϲͬϯϬͬϮϬϭϴ ϯϲ͕ϴϮϱ͕ϲϯϰ ϭ͕ϯϱϬ͕ϲϮϯ ϭϬϯ͕ϳϱϯ ϯϴ͕ϮϴϬ͕ϬϭϬ ϵϳϱ͕ϭϰϰ ϮϬϴ͕ϵϮϱ ϮϬϲ͕ϲϰϱ ϰϲ͕ϯϱϲ ϭ͕ϳϳϲ͕ϴϴϯ ϯ͕Ϯϭϯ͕ϵϱϯ ϲͬϯϬͬϮϬϭϵ ϯϳ͕ϳϳϱ͕Ϯϴϱ ϭ͕Ϯϯϳ͕ϵϬϯ ϴϲ͕ϳϳϮ ϯϵ͕Ϭϵϵ͕ϵϲϬ ϵϬϯ͕ϯϵϵ ϮϬϲ͕ϯϲϬ ϴϲϳ͕ϳϲϯ ϭϮ͕ϲϲϵ ϭ͕ϴϵϭ͕ϳϮϵ ϯ͕ϴϴϭ͕ϵϮϬ ϲͬϯϬͬϮϬϮϬ ϯϵ͕ϭϲϮ͕ϰϴϱ ϭ͕ϬϮϬ͕ϴϭϴ ϴϰ͕Ϭϳϯ ϰϬ͕Ϯϲϳ͕ϯϳϲ ϳϰϳ͕ϰϳϳ Ϯϰϱ͕ϳϴϰ ϲϱϭ͕Ϭϯϭ Ͳ ϭ͕ϵϵϭ͕ϳϰϳ ϯ͕ϲϯϲ͕Ϭϯϵ ϲͬϯϬͬϮϬϮϭ ϰϭ͕ϳϲϬ͕ϳϰϱ ϵϭϬ͕ϲϮϴ ϴϲ͕ϴϭϵ ϰϮ͕ϳϱϴ͕ϭϵϮ Ϯϵ͕ϱϰϭ Ϯϴϲ͕ϱϱϯ ϯϬϲ͕ϳϴϱ ϴϯ͕ϲϴϮ Ϯ͕Ϭϭϭ͕Ϭϵϵ Ϯ͕ϳϭϳ͕ϲϲϬ ϲͬϯϬͬϮϬϮϮ ϰϮ͕ϭϳϱ͕ϲϮϯ ϵϬϱ͕ϲϳϰ ϲϴ͕ϴϮϴ ϰϯ͕ϭϱϬ͕ϭϮϰ Ͳ ϯϰϳ͕ϴϰϵ ϱϯϬ͕ϯϮϲ Ϯϴ͕ϴϰϲ ϭ͕ϵϭϬ͕ϰϯϱ Ϯ͕ϴϭϳ͕ϰϱϲ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ Ͳ ϱ͕ϬϬϬ ϭϬ͕ϬϬϬ ϭϱ͕ϬϬϬ ϮϬ͕ϬϬϬ Ϯϱ͕ϬϬϬ ϯϬ͕ϬϬϬ ϯϱ͕ϬϬϬ ϰϬ͕ϬϬϬ ϰϱ͕ϬϬϬ ϱϬ͕ϬϬϬ dŚŽƵƐĂŶĚƐKƉĞƌĂƚŝŶŐZĞǀĞŶƵĞďLJdLJƉĞͲtĂƚĞƌ&ƵŶĚ KƚŚĞƌ^ĞƌǀŝĐĞƐ ^ĞƌǀŝĐĞŚĂƌŐĞƐͬ&ĞĞƐ tĂƚĞƌ^ĂůĞƐ Ͳ ϱϬϬ ϭ͕ϬϬϬ ϭ͕ϱϬϬ Ϯ͕ϬϬϬ Ϯ͕ϱϬϬ ϯ͕ϬϬϬ ϯ͕ϱϬϬ ϰ͕ϬϬϬ ϰ͕ϱϬϬ dŚŽƵƐĂŶĚƐEŽŶͲKƉĞƌĂƚŝŶŐZĞǀĞŶƵĞďLJdLJƉĞ͗tĂƚĞƌ&ƵŶĚ EŽŶĐĂƉŝƚĂůŐƌĂŶƚĨƵŶĚƐ 'ĂŝŶŽŶĂƐƐĞƚĚŝƐƉŽƐŝƚŝŽŶ KƚŚĞƌ/ŶĐŽŵĞ ZĞŶƚĂů/ŶĐŽŵĞ /ŶƚĞƌĞƐƚ/ŶĐŽŵĞ 70   Packet Pg. 373 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ ^ĞǁĞƌ&ƵŶĚZĞǀĞŶƵĞďLJdLJƉĞ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ &ŝƐĐĂůzĞĂƌ ŶĚĞĚ ^ĞǁĞƌdƌĞĂƚŵĞŶƚ ZĞǀĞŶƵĞ /ŶĚƵƐƚƌŝĂůtĂƐƚĞ KƚŚĞƌ KƉĞƌĂƚŝŶŐ ZĞǀĞŶƵĞ dŽƚĂůKƉĞƌĂƚŝŶŐ ZĞǀĞŶƵĞ /ŶƚĞƌĞƐƚ /ŶĐŽŵĞ ZĞŶƚĂů /ŶĐŽŵĞ KƚŚĞƌ/ŶĐŽŵĞ 'ĂŝŶŽŶƐƐĞƚ ŝƐƉŽƐŝƚŝŽŶ ͬ:ŽŝŶƚsĞŶƚƵƌĞ dŽƚĂůEŽŶ KƉĞƌĂƚŝŶŐ /ŶĐŽŵĞ ϲͬϯϬͬϮϬϭϯ Ϯϱ͕Ϯϲϭ͕ϳϵϮ Ϯϵϲ͕ϭϱϯ ϴϱϲ͕ϳϬϴ Ϯϲ͕ϰϭϰ͕ϲϱϰ ϯϰϬ͕ϲϴϵ ϮϮ͕ϱϳϰ Ͳ Ͳ ϯϲϯ͕Ϯϲϯ ϲͬϯϬͬϮϬϭϰ Ϯϱ͕ϯϱϬ͕ϵϴϴ ϯϭϵ͕ϳϴϲ Ͳ Ϯϱ͕ϲϳϬ͕ϳϳϰ ϰϰϯ͕ϴϯϲ ϮϬ͕ϲϲϵ ϮϬϮ͕Ϭϳϴ Ͳ ϲϲϲ͕ϱϴϯ ϲͬϯϬͬϮϬϭϱ Ϯϰ͕ϯϵϵ͕ϰϭϱ ϯϯϱ͕ϬϭϬ Ͳ Ϯϰ͕ϳϯϰ͕ϰϮϱ ϰϴϭ͕Ϯϭϭ ϳϬϬ ϰϵϴ͕Ϯϰϳ ϯϰϱ͕ϴϴϰ ϭ͕ϯϮϲ͕ϬϰϮ ϲͬϯϬͬϮϬϭϲ Ϯϱ͕ϬϯϬ͕ϱϲϵ ϯϴϬ͕ϭϳϭ Ͳ Ϯϱ͕ϰϭϬ͕ϳϰϬ ϲϱϴ͕ϰϱϲ ϰϭ͕ϰϵϴ ϯϱϵ͕ϴϬϬ Ͳ ϭ͕Ϭϱϵ͕ϳϱϰ ϲͬϯϬͬϮϬϭϳ Ϯϴ͕ϬϮϮ͕Ϯϱϵ ϱϴϵ͕ϳϲϬ Ͳ Ϯϴ͕ϲϭϮ͕Ϭϭϵ Ϯϯ͕ϯϵϭ ϭϱ͕ϵϬϴ Ͳ Ͳ ϯϵ͕Ϯϵϵ ϲͬϯϬͬϮϬϭϴ ϯϬ͕Ϭϯϵ͕ϭϭϬ ϲϵϰ͕ϯϰϮ Ͳ ϯϬ͕ϳϯϯ͕ϰϱϮ Ͳ ϭϮ͕ϰϴϭ Ͳ ϲ͕Ϭϲϯ ϭϴ͕ϱϰϰ ϲͬϯϬͬϮϬϭϵ Ϯϵ͕ϴϲϭ͕ϭϵϮ ϲϴϰ͕ϵϴϵ Ͳ ϯϬ͕ϱϰϲ͕ϭϴϭ ϭ͕ϯϲϭ͕ϵϯϲ Ͳ Ͳ ϵ͕ϰϭϳ ϭ͕ϯϳϭ͕ϯϱϯ ϲͬϯϬͬϮϬϮϬ Ϯϵ͕ϳϭϮ͕ϳϯϰ ϲϴϰ͕ϯϱϴ Ͳ ϯϬ͕ϯϵϳ͕ϬϵϮ ϭ͕ϯϮϮ͕ϯϲϳ Ͳ Ͳ Ͳ ϭ͕ϯϮϮ͕ϯϲϳ ϲͬϯϬͬϮϬϮϭ Ϯϵ͕ϱϴϳ͕ϱϵϳ ϳϳϯ͕ϱϭϵ Ͳ ϯϬ͕ϯϲϭ͕ϭϭϲ ϭϵ͕ϰϳϮ Ͳ Ͳ Ͳ ϭϵ͕ϰϳϮ ϲͬϯϬͬϮϬϮϮ ϯϯ͕ϯϰϳ͕ϴϴϮ ϴϮϯ͕ϮϳϴͲ ϯϰ͕ϭϳϭ͕ϭϲϬ Ͳ Ͳ Ͳ Ͳ Ͳ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ Ͳ ϱ͕ϬϬϬ ϭϬ͕ϬϬϬ ϭϱ͕ϬϬϬ ϮϬ͕ϬϬϬ Ϯϱ͕ϬϬϬ ϯϬ͕ϬϬϬ ϯϱ͕ϬϬϬ ϰϬ͕ϬϬϬ dŚŽƵƐĂŶĚƐKƉĞƌĂƚŝŶŐZĞǀĞŶƵĞďLJdLJƉĞͲ^ĞǁĞƌ&ƵŶĚ KƚŚĞƌKƉĞƌĂƚŝŶŐZĞǀĞŶƵĞ /ŶĚƵƐƚƌŝĂůtĂƐƚĞ ^ĞǁĞƌdƌĞĂƚŵĞŶƚZĞǀĞŶƵĞ Ͳ ϮϬϬ ϰϬϬ ϲϬϬ ϴϬϬ ϭ͕ϬϬϬ ϭ͕ϮϬϬ ϭ͕ϰϬϬ ϭ͕ϲϬϬ dŚŽƵƐĂŶĚƐEŽŶͲKƉĞƌĂƚŝŶŐZĞǀĞŶƵĞďLJdLJƉĞͲ ^ĞǁĞƌdƌĞĂƚŵĞŶƚ&ƵŶĚ 'ĂŝŶŽŶƐƐĞƚŝƐƉŽƐŝƚŝŽŶ ͬ:ŽŝŶƚsĞŶƚƵƌĞ KƚŚĞƌ/ŶĐŽŵĞ ZĞŶƚĂů/ŶĐŽŵĞ /ŶƚĞƌĞƐƚ/ŶĐŽŵĞ 71   Packet Pg. 374 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ ^ĞǁĞƌŽůůĞĐƚŝŽŶ&ƵŶĚZĞǀĞŶƵĞďLJdLJƉĞ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ &ŝƐĐĂůzĞĂƌ ŶĚĞĚ ^ĞǁĞƌŽůůĞĐƚŝŽŶ ZĞǀĞŶƵĞ ^ĞƌǀŝĐĞ ŚĂƌŐĞƐͬ&ĞĞƐ KƚŚĞƌ KƉĞƌĂƚŝŶŐ ZĞǀĞŶƵĞ dŽƚĂůKƉĞƌĂƚŝŶŐ ZĞǀĞŶƵĞ /ŶƚĞƌĞƐƚ /ŶĐŽŵĞ ZĞŶƚĂů/ŶĐŽŵĞ KƚŚĞƌ /ŶĐŽŵĞ 'ĂŝŶŽŶĂƐƐĞƚ ĚŝƐƉŽƐŝƚŝŽŶͬŽŶƚ ƌŝďƵƚŝŽŶĨƌŽŵ ŝƚLJ dŽƚĂůEŽŶ KƉĞƌĂƚŝŶŐ /ŶĐŽŵĞ ϲͬϯϬͬϮϬϭϯ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ϲͬϯϬͬϮϬϭϰ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ϲͬϯϬͬϮϬϭϱ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ϲͬϯϬͬϮϬϭϲ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ϲͬϯϬͬϮϬϭϳΎ Ϯ͕ϴϲϬ͕ϲϮϳ ϯϬ͕ϱϳϲ Ͳ Ϯ͕ϴϵϭ͕ϮϬϯ Ϯϴ͕ϯϭϱ Ͳ Ͳ ϭϮ͕ϱϴϬ͕ϳϴϭϭϮ͕ϲϬϵ͕Ϭϵϲ ϲͬϯϬͬϮϬϭϴ ϳ͕ϲϳϵ͕ϬϮϬ ϯ͕ϵϮϲ Ͳ ϳ͕ϲϴϮ͕ϵϰϲϮϬϭ͕ϲϲϯ ͲϮϱϭ͕ϰϳϯ ϯ͕ϭϲϴϰϱϲ͕ϯϬϰ ϲͬϯϬͬϮϬϭϵ ϳ͕ϱϱϱ͕ϵϲϬ ϲ͕ϭϯϳ Ͳ ϳ͕ϱϲϮ͕Ϭϵϳϱϴϰ͕ϲϴϱ Ͳ ϱ Ͳϱϴϰ͕ϲϵϬ ϲͬϯϬͬϮϬϮϬ ϳ͕ϲϱϲ͕ϲϳϱ ϵ͕ϲϯϰ Ͳ ϳ͕ϲϲϲ͕ϯϬϵϲϮϲ͕ϳϲϭ Ͳ Ͳ ϯ͕ϬϬϯϲϮϵ͕ϳϲϰ ϲͬϯϬͬϮϬϮϭ ϳ͕ϳϱϵ͕ϯϭϴ ϯϱ͕ϭϬϬ Ͳ ϳ͕ϳϵϰ͕ϰϭϴ ϭ͕ϲϬϱ Ͳ ϵ͕ϯϬϲ ͲϭϬ͕ϵϭϭ ϲͬϯϬͬϮϬϮϮ ϲ͕ϯϬϲ͕ϴϰϯ ϴϳ͕ϳϴϬ Ͳ ϲ͕ϯϵϰ͕ϲϮϯ Ͳ Ͳ Ͳ ͲͲ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ ΎdŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶhƚŝůŝƚLJǁĂƐƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚĞtĂƚĞƌĞƉĂƌƚŵĞŶƚŽŶDĂLJϭ͕ϮϬϭϳƐŽƉƌŝŽƌLJĞĂƌĚĂƚĂŝƐ ƵŶĂǀĂŝůĂďůĞ͘ Ͳ ϭ͕ϬϬϬ Ϯ͕ϬϬϬ ϯ͕ϬϬϬ ϰ͕ϬϬϬ ϱ͕ϬϬϬ ϲ͕ϬϬϬ ϳ͕ϬϬϬ ϴ͕ϬϬϬ ϵ͕ϬϬϬ dŚŽƵƐĂŶĚƐKƉĞƌĂƚŝŶŐZĞǀĞŶƵĞďLJdLJƉĞͲ^ĞǁĞƌŽůůĞĐƚŝŽŶ &ƵŶĚ KƚŚĞƌKƉĞƌĂƚŝŶŐZĞǀĞŶƵĞ ^ĞƌǀŝĐĞŚĂƌŐĞƐͬ&ĞĞƐ ^ĞǁĞƌŽůůĞĐƚŝŽŶZĞǀĞŶƵĞ Ͳ Ϯ͕ϬϬϬ ϰ͕ϬϬϬ ϲ͕ϬϬϬ ϴ͕ϬϬϬ ϭϬ͕ϬϬϬ ϭϮ͕ϬϬϬ ϭϰ͕ϬϬϬ dŚŽƵƐĂŶĚƐEŽŶͲKƉĞƌĂƚŝŶŐZĞǀĞŶƵĞďLJdLJƉĞͲ ^ĞǁĞƌŽůůĞĐƚŝŽŶƐ&ƵŶĚ 'ĂŝŶŽŶĂƐƐĞƚ ĚŝƐƉŽƐŝƚŝŽŶͬŽŶƚƌŝďƵƚŝŽŶĨƌŽŵ ŝƚLJ KƚŚĞƌ/ŶĐŽŵĞ ZĞŶƚĂů/ŶĐŽŵĞ 72   Packet Pg. 375 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ tĂƚĞƌ&ƵŶĚdžƉĞŶƐĞƐďLJdLJƉĞ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ &ŝƐĐĂůzĞĂƌ ŶĚĞĚ ĚŵŝŶŝƐƚƌĂƚŝŽŶΘ ƵƐƚŽŵĞƌ^ĞƌǀŝĐĞ WůĂŶƚKƉĞƌĂƚŝŽŶƐ ĂŶĚŝƐƚƌŝďƵƚŝŽŶ ŶŐŝŶĞĞƌŝŶŐ DĂŝŶƚĞŶĂŶĐĞ ĞƉƌĞĐŝĂƚŝŽŶ ĂŶĚ ŵŽƌƚŝnjĂƚŝŽŶ dŽƚĂůKƉĞƌĂƚŝŶŐ džƉĞŶƐĞ /ŶƚĞƌĞƐƚ džƉĞŶƐĞ >ŽƐƐŽŶĂƐƐĞƚ ĚŝƐƉŽƐŝƚŝŽŶ KƚŚĞƌEŽŶͲ ŽƉĞƌĂƚŝŶŐ ĞdžƉĞŶƐĞ dŽƚĂůEŽŶͲ KƉĞƌĂƚŝŶŐ džƉĞŶƐĞ ϲͬϯϬͬϮϬϭϯ ϭϲ͕ϭϰϵ͕ϳϴϴ ϭϭ͕Ϭϳϯ͕ϯϯϴ Ϯ͕ϴϭϯ͕ϰϱϵ ϭ͕ϴϴϴ͕Ϯϯϲ ϱ͕ϱϬϱ͕ϰϬϯ ϯϳ͕ϰϯϬ͕ϮϮϰ ϲϴϵ͕ϲϲϱ Ϯϲϭ͕ϵϰϲ Ͳ ϵϱϭ͕ϲϭϭ ϲͬϯϬͬϮϬϭϰ ϭϰ͕ϰϭϬ͕ϰϬϬ ϭϭ͕ϯϵϱ͕ϯϬϱ Ϯ͕ϰϮϲ͕ϳϭϳ ϭ͕ϴϯϳ͕ϱϱϲ ϱ͕ϵϳϭ͕ϲϯϴ ϯϲ͕Ϭϰϭ͕ϲϭϲ Ϯϲϭ͕ϴϯϲ Ͳ Ͳ Ϯϲϭ͕ϴϯϲ ϲͬϯϬͬϮϬϭϱ ϭϯ͕Ϯϰϰ͕ϱϱϮ ϭϮ͕ϰϲϳ͕Ϭϭϳ Ϯ͕ϰϯϵ͕ϭϳϬ ϭ͕ϵϴϴ͕ϳϭϵ ϱ͕ϯϲϱ͕ϭϮϰ ϯϱ͕ϱϬϰ͕ϱϴϮ ϭϲϵ͕ϭϭϵ Ͳ Ͳ ϭϲϵ͕ϭϭϵ ϲͬϯϬͬϮϬϭϲ ϭϯ͕ϯϭϯ͕Ϭϴϱ ϭϭ͕ϰϬϲ͕ϴϲϭ Ϯ͕ϯϮϲ͕ϱϱϭ ϭ͕ϵϳϴ͕ϱϯϰ ϱ͕ϴϬϵ͕ϯϯϭ ϯϰ͕ϴϯϰ͕ϯϲϮ ϭϬϲ͕ϲϵϴ Ͳ Ͳ ϭϬϲ͕ϲϵϴ ϲͬϯϬͬϮϬϭϳ ϭϯ͕ϵϳϭ͕ϭϬϲ ϭϮ͕ϰϯϲ͕ϱϬϭ Ϯ͕ϯϮϵ͕ϭϰϮ ϭ͕ϴϱϵ͕ϴϳϭ ϲ͕ϰϳϴ͕ϬϱϬ ϯϳ͕Ϭϳϰ͕ϲϳϬ ϯ͕ϭϯϬ͕ϳϰϵ Ͳ Ͳ ϯ͕ϭϯϬ͕ϳϰϵ ϲͬϯϬͬϮϬϭϴ ϭϭ͕ϯϬϬ͕Ϭϵϭ ϭϮ͕ϯϯϳ͕ϳϲϯ ϭ͕ϵϰϯ͕ϲϱϵ Ϯ͕ϮϵϮ͕ϲϮϱ ϲ͕ϱϳϭ͕ϵϱϳ ϯϰ͕ϰϰϲ͕Ϭϵϱ Ϯ͕Ϭϭϱ͕ϳϵϮ Ͳ Ͳ Ϯ͕Ϭϭϱ͕ϳϵϮ ϲͬϯϬͬϮϬϭϵ ϵ͕ϵϴϳ͕ϭϵϴ ϭϮ͕ϴϱϯ͕ϰϬϬ Ϯ͕Ϯϱϯ͕ϯϯϯ Ϯ͕ϯϴϳ͕ϴϴϵ ϲ͕ϱϭϮ͕ϵϬϳ ϯϯ͕ϵϵϰ͕ϳϮϳ ϭ͕ϵϵϯ͕ϲϮϰ Ͳ Ͳ ϭ͕ϵϵϯ͕ϲϮϰ ϲͬϯϬͬϮϬϮϬ ϭϯ͕ϰϭϴ͕ϴϴϲ ϭϮ͕ϰϳϮ͕ϲϯϯ Ϯ͕ϲϰϭ͕ϲϰϭ Ϯ͕ϱϮϴ͕ϰϰϭ ϳ͕ϱϲϰ͕ϱϱϬ ϯϴ͕ϲϮϲ͕ϭϱϭ ϭ͕ϵϱϱ͕ϯϭϳ Ϯϱ͕Ϭϵϰ Ͳ ϭ͕ϵϴϬ͕ϰϭϭ ϲͬϯϬͬϮϬϮϭ ϭϰ͕ϰϬϱ͕ϱϱϳ ϭϰ͕Ϭϰϱ͕ϮϯϮ ϯ͕Ϭϲϰ͕ϲϮϯ ϯ͕ϭϮϲ͕ϱϱϲ ϳ͕ϴϯϴ͕ϴϴϳ ϰϮ͕ϰϴϬ͕ϴϱϱ ϭ͕ϵϮϲ͕ϭϯϯ Ͳ Ͳ ϭ͕ϵϮϲ͕ϭϯϯ ϲͬϯϬͬϮϬϮϮ ϭϭ͕ϵϮϭ͕ϯϵϰ ϭϰ͕ϲϬϯ͕ϭϯϬ ϯ͕ϬϬϭ͕ϭϬϬϮ͕ϴϰϲ͕ϵϵϳ ϱ͕Ϯϱϯ͕ϰϮϱ ϯϳ͕ϲϮϲ͕Ϭϰϲ ϭ͕ϴϳϳ͕ϯϮϱ Ͳ ϰϱϲ͕ϭϳϬ Ϯ͕ϯϯϯ͕ϰϵϱ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ Ͳ ϱ͕ϬϬϬ ϭϬ͕ϬϬϬ ϭϱ͕ϬϬϬ ϮϬ͕ϬϬϬ Ϯϱ͕ϬϬϬ ϯϬ͕ϬϬϬ ϯϱ͕ϬϬϬ ϰϬ͕ϬϬϬ ϰϱ͕ϬϬϬ dŚŽƵƐĂŶĚƐKƉĞƌĂƚŝŶŐdžƉĞŶƐĞƐďLJdLJƉĞͲtĂƚĞƌ&ƵŶĚ ĞƉƌĞĐŝĂƚŝŽŶĂŶĚŵŽƌƚŝnjĂƚŝŽŶ DĂŝŶƚĞŶĂŶĐĞ ŶŐŝŶĞĞƌŝŶŐ WůĂŶƚKƉĞƌĂƚŝŽŶƐĂŶĚŝƐƚƌŝďƵƚŝŽŶ ĚŵŝŶŝƐƚƌĂƚŝŽŶΘƵƐƚŽŵĞƌ^ĞƌǀŝĐĞ Ͳ ϱϬϬ ϭ͕ϬϬϬ ϭ͕ϱϬϬ Ϯ͕ϬϬϬ Ϯ͕ϱϬϬ ϯ͕ϬϬϬ ϯ͕ϱϬϬ ϲͬϯϬͬϮϬϭϯ ϲͬϯϬͬϮϬϭϰ ϲͬϯϬͬϮϬϭϱ ϲͬϯϬͬϮϬϭϲ ϲͬϯϬͬϮϬϭϳ ϲͬϯϬͬϮϬϭϴ ϲͬϯϬͬϮϬϭϵ ϲͬϯϬͬϮϬϮϬ ϲͬϯϬͬϮϬϮϭ ϲͬϯϬͬϮϬϮϮdŚŽƵƐĂŶĚƐEŽŶͲKƉĞƌĂƚŝŶŐdžƉĞŶƐĞďLJdLJƉĞ͗tĂƚĞƌ&ƵŶĚ KƚŚĞƌEŽŶͲŽƉĞƌĂƚŝŶŐĞdžƉĞŶƐĞ >ŽƐƐŽŶĂƐƐĞƚĚŝƐƉŽƐŝƚŝŽŶ /ŶƚĞƌĞƐƚdžƉĞŶƐĞ 73   Packet Pg. 376 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ ^ĞǁĞƌ&ƵŶĚdžƉĞŶƐĞƐďLJdLJƉĞ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ &ŝƐĐĂůzĞĂƌ ŶĚĞĚ ĚŵŝŶŝƐƚƌĂƚŝŽŶΘ ƵƐƚŽŵĞƌ^ĞƌǀŝĐĞ WůĂŶƚKƉĞƌĂƚŝŽŶƐ ŶŐŝŶĞĞƌŝŶŐ DĂŝŶƚĞŶĂŶĐĞ ĞƉƌĞĐŝĂƚŝŽŶ ĂŶĚ ŵŽƌƚŝnjĂƚŝŽŶ dŽƚĂůKƉĞƌĂƚŝŶŐ džƉĞŶƐĞ /ŶƚĞƌĞƐƚ džƉĞŶƐĞ >ŽƐƐŽŶƐƐĞƚ ŝƐƉŽƐŝƚŝŽŶ ͬ:ŽŝŶƚsĞŶƚƵƌĞ KƚŚĞƌEŽŶͲ ŽƉĞƌĂƚŝŶŐ ĞdžƉĞŶƐĞ dŽƚĂůEŽŶͲ KƉĞƌĂƚŝŶŐ džƉĞŶƐĞ ϲͬϯϬͬϮϬϭϯ ϰ͕ϰϱϰ͕ϳϭϯ ϭϬ͕ϬϰϬ͕ϴϵϱ Ͳ ϯ͕ϯϵϮ͕ϴϲϴ ϰ͕ϰϬϴ͕ϳϮϭ ϮϮ͕Ϯϵϳ͕ϭϵϳ ϴϮϴ͕ϭϮϵ ϭϭ͕ϲϰϰ ϭϱϰ͕ϭϴϬ ϵϵϯ͕ϵϱϯ ϲͬϯϬͬϮϬϭϰ ϱ͕ϯϰϱ͕ϳϮϲ ϵ͕ϱϮϴ͕Ϯϭϴ ϱϮϳ͕Ϯϵϰ ϯ͕ϭϰϲ͕Ϯϳϱ ϯ͕ϰϮϲ͕ϱϭϱ Ϯϭ͕ϵϳϰ͕ϬϮϴ ϱϱϳ͕Ϭϰϵ ϭϲ͕Ϯϰϰ ϭ͕Ϯϯϴ͕ϳϬϯ ϭ͕ϴϭϭ͕ϵϵϲ ϲͬϯϬͬϮϬϭϱ ϰ͕Ϭϭϲ͕ϭϵϴ ϵ͕ϮϵϮ͕ϱϬϭ ϱϯϰ͕ϮϮϲ Ϯ͕ϵϬϲ͕ϴϱϯ Ϯ͕ϴϳϬ͕ϱϱϬ ϭϵ͕ϲϮϬ͕ϯϮϴ ϮϮϳ͕ϭϲϱ Ͳ Ͳ ϮϮϳ͕ϭϲϱ ϲͬϯϬͬϮϬϭϲ ϰ͕Ϯϵϵ͕ϴϬϴ ϵ͕ϴϬϬ͕Ϯϴϯ ϰϲϰ͕ϱϱϰ Ϯ͕ϴϳϰ͕ϯϱϮ ϭ͕ϮϵϮ͕ϰϮϲ ϭϴ͕ϳϯϭ͕ϰϮϯ ϭϲϳ͕ϳϵϱ ϭ͕ϭϭϲ͕Ϭϳϴ Ͳϭ͕Ϯϴϯ͕ϴϳϯ ϲͬϯϬͬϮϬϭϳ ϲ͕ϳϵϵ͕ϲϯϵ ϵ͕ϲϮϬ͕ϲϯϵ ϰϴϬ͕ϵϱϭ ϯ͕ϭϯϱ͕ϲϴϲ ϰ͕ϭϬϮ͕ϵϲϯ Ϯϰ͕ϭϯϵ͕ϴϳϴ ϭ͕ϯϬϬ͕Ϯϲϯ Ϯ͕ϯϮϭ͕ϰϴϱ ϰϮ͕ϮϬϵ ϯ͕ϲϲϯ͕ϵϱϳ ϲͬϯϬͬϮϬϭϴ ϱ͕ϲϵϬ͕ϱϬϳ ϵ͕Ϭϱϲ͕ϱϭϴ ϱϬϬ͕ϬϬϵ ϯ͕Ϯϴϭ͕ϰϰϲ ϰ͕ϭϱϳ͕ϱϱϬ ϮϮ͕ϲϴϲ͕ϬϯϬ ϭ͕ϯϳϲ͕ϬϬϵ ϭ͕Ϯϰϳ͕ϲϳϬ ϳϯϯ͕ϱϴϯ ϯ͕ϯϱϳ͕ϮϲϮ ϲͬϯϬͬϮϬϭϵ ϲ͕ϳϳϱ͕ϱϱϮ ϭϬ͕ϭϭϴ͕ϱϬϲ ϲϭϳ͕ϴϱϱ ϯ͕Ϭϰϭ͕ϲϮϬ ϰ͕ϯϭϯ͕ϭϰϳ Ϯϰ͕ϴϲϲ͕ϲϴϭ ϭ͕ϯϲϳ͕ϯϳϱ ϭ͕ϱϱϯ͕Ϯϲϭ Ͳ Ϯ͕ϵϮϬ͕ϲϯϱ ϲͬϯϬͬϮϬϮϬ ϱ͕ϳϬϮ͕ϵϳϯ ϭϬ͕ϰϳϬ͕ϱϬϭ ϯϲϵ͕ϰϮϮ ϯ͕ϱϬϴ͕ϱϯϰ ϰ͕ϱϵϲ͕ϵϴϬ Ϯϰ͕ϲϰϴ͕ϰϭϭ ϭ͕ϯϭϯ͕ϭϱϭ ϭ͕ϱϰϲ͕ϯϵϲ Ͳ Ϯ͕ϴϱϵ͕ϱϰϲ ϲͬϯϬͬϮϬϮϭ ϲ͕ϮϵϮ͕ϯϭϯ ϭϭ͕ϵϴϲ͕ϴϱϴ ϯϴϳ͕ϵϯϮ ϯ͕ϴϭϭ͕ϰϭϯ ϰ͕ϱϬϳ͕ϴϲϵ Ϯϲ͕ϵϴϲ͕ϯϴϱ ϭ͕Ϯϴϯ͕ϴϲϭ ϭ͕ϰϳϵ͕ϳϮϵ ϯϴ͕ϯϲϯ Ϯ͕ϴϬϭ͕ϵϱϯ ϲͬϯϬͬϮϬϮϮ ϯ͕ϲϲϲ͕ϱϰϳ ϭϰ͕ϲϰϴ͕ϱϯϬ ϯϴϱ͕ϱϭϳ ϯ͕ϳϲϰ͕ϲϭϴ ϰ͕ϯϮϵ͕ϭϳϴ Ϯϲ͕ϳϵϰ͕ϯϵϬ ϭ͕Ϯϰϵ͕ϳϭϱ Ͳ Ύ ϭ͕Ϭϯϴ͕Ϯϵϭ Ϯ͕Ϯϴϴ͕ϬϬϲ  ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ Ύ:ŽŝŶƚsĞŶƚƵƌĞĞdžƉĞŶƐĞƌĞůĂƚŝŶŐƚŽZ/yŽƉĞƌĂƚŝŽŶƐĂƌĞŶŽǁĐůĂƐƐŝĨŝĞĚĂƐKƉĞƌĂƚŝŽŶƐďĞŐŝŶŶŝŶŐŝŶϮϬϮϮ͘ Ͳ ϱ͕ϬϬϬ ϭϬ͕ϬϬϬ ϭϱ͕ϬϬϬ ϮϬ͕ϬϬϬ Ϯϱ͕ϬϬϬ ϯϬ͕ϬϬϬ dŚŽƵƐĂŶĚƐKƉĞƌĂƚŝŶŐdžƉĞŶƐĞƐďLJdLJƉĞͲ^ĞǁĞƌ&ƵŶĚ ĞƉƌĞĐŝĂƚŝŽŶĂŶĚŵŽƌƚŝnjĂƚŝŽŶ DĂŝŶƚĞŶĂŶĐĞ ŶŐŝŶĞĞƌŝŶŐ WůĂŶƚKƉĞƌĂƚŝŽŶƐ ĚŵŝŶŝƐƚƌĂƚŝŽŶΘƵƐƚŽŵĞƌ^ĞƌǀŝĐĞ Ͳ ϱϬϬ ϭ͕ϬϬϬ ϭ͕ϱϬϬ Ϯ͕ϬϬϬ Ϯ͕ϱϬϬ ϯ͕ϬϬϬ ϯ͕ϱϬϬ ϰ͕ϬϬϬ dŚŽƵƐĂŶĚƐEŽŶͲKƉĞƌĂƚŝŶŐdžƉĞŶƐĞďLJdLJƉĞ͗^ĞǁĞƌ&ƵŶĚ KƚŚĞƌEŽŶͲŽƉĞƌĂƚŝŶŐĞdžƉĞŶƐĞ >ŽƐƐŽŶƐƐĞƚŝƐƉŽƐŝƚŝŽŶͬ:ŽŝŶƚsĞŶƚƵƌĞ /ŶƚĞƌĞƐƚdžƉĞŶƐĞ 74   Packet Pg. 377 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ ^ĞǁĞƌŽůůĞĐƚŝŽŶ&ƵŶĚdžƉĞŶƐĞƐďLJdLJƉĞ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ &ŝƐĐĂůzĞĂƌ ŶĚĞĚ ĚŵŝŶŝƐƚƌĂƚŝŽŶΘ ƵƐƚŽŵĞƌ^ĞƌǀŝĐĞ WůĂŶƚKƉĞƌĂƚŝŽŶƐ ŶŐŝŶĞĞƌŝŶŐ DĂŝŶƚĞŶĂŶĐĞ ĞƉƌĞĐŝĂƚŝŽŶĂŶĚ ŵŽƌƚŝnjĂƚŝŽŶ dŽƚĂůKƉĞƌĂƚŝŶŐ džƉĞŶƐĞ /ŶƚĞƌĞƐƚ džƉĞŶƐĞ >ŽƐƐŽŶƐƐĞƚ ŝƐƉŽƐŝƚŝŽŶ KƚŚĞƌEŽŶͲ ŽƉĞƌĂƚŝŶŐ ĞdžƉĞŶƐĞ dŽƚĂůEŽŶͲ KƉĞƌĂƚŝŶŐ džƉĞŶƐĞ ϲͬϯϬͬϮϬϭϯ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ ϲͬϯϬͬϮϬϭϰ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ ϲͬϯϬͬϮϬϭϱ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ ϲͬϯϬͬϮϬϭϲ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ ϲͬϯϬͬϮϬϭϳ ϯϭϰ͕ϮϲϱϰϵϮ͕ϲϳϱ Ͳ ͲϮϰϳ͕ϵϮϲ ϭ͕Ϭϱϰ͕ϴϲϲ Ͳ Ͳ ϲ͕ϵϱϭ ϲ͕ϵϱϭ ϲͬϯϬͬϮϬϭϴ Ϯ͕Ϯϭϭ͕ϭϴϴ ϯϱϰ͕ϰϮϯ ϴ͕Ϭϳϭ͕ϴϵϭ Ͳ ϭ͕ϬϮϵ͕ϲϰϴ ϭϭ͕ϲϲϳ͕ϭϱϬ Ͳ Ͳ Ͳ Ͳ ϲͬϯϬͬϮϬϭϵ ϭ͕ϲϬϴ͕Ϭϳϰ ϰϯϵ͕ϲϲϬ ϱ͕Ϭϱϭ͕ϳϳϯ Ͳ ϭ͕Ϭϳϯ͕ϰϭϱ ϴ͕ϭϳϮ͕ϵϮϮ Ͳ Ͳ Ͳ Ͳ ϲͬϯϬͬϮϬϮϬ ϭ͕ϴϵϴ͕ϰϲϭ ϰϴϯ͕ϯϭϲ ϰ͕ϭϮϰ͕ϲϯϭ Ͳ ϭ͕ϭϰϰ͕Ϭϵϲ ϳ͕ϲϱϬ͕ϱϬϰ Ͳ Ͳ Ͳ Ͳ ϲͬϯϬͬϮϬϮϭ ϯ͕ϰϵϳ͕ϵϲϵ ϱϯϯ͕ϲϭϵ Ϯ͕ϱϰϵ͕Ϯϱϳ Ͳ ϭ͕Ϯϴϭ͕ϲϬϮ ϳ͕ϴϲϮ͕ϰϰϳ Ͳ Ͳ Ͳ Ͳ ϲͬϯϬͬϮϬϮϮ Ϯ͕ϱϯϱ͕ϯϭϰ ϱϵϬ͕ϲϬϬ ϯ͕ϯϯϯ͕ϴϬϰ Ͳ ϭ͕ϰϮϴ͕ϯϰϳ ϳ͕ϴϴϴ͕Ϭϲϱ Ͳ Ͳϱϭϭ͕Ϯϯϰ ϱϭϭ͕Ϯϯϰ  ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ ΎdŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶhƚŝůŝƚLJǁĂƐƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚĞtĂƚĞƌĞƉĂƌƚŵĞŶƚŽŶDĂLJϭ͕ϮϬϭϳƐŽƉƌŝŽƌLJĞĂƌĚĂƚĂŝƐƵŶĂǀĂŝůĂďůĞ͘ Ͳ Ϯ͕ϬϬϬ ϰ͕ϬϬϬ ϲ͕ϬϬϬ ϴ͕ϬϬϬ ϭϬ͕ϬϬϬ ϭϮ͕ϬϬϬ ϭϰ͕ϬϬϬ dŚŽƵƐĂŶĚƐKƉĞƌĂƚŝŶŐdžƉĞŶƐĞƐďLJdLJƉĞͲ^ĞǁĞƌŽůůĞĐƚŝŽŶ&ƵŶĚ ĞƉƌĞĐŝĂƚŝŽŶĂŶĚŵŽƌƚŝnjĂƚŝŽŶ DĂŝŶƚĞŶĂŶĐĞ ŶŐŝŶĞĞƌŝŶŐ WůĂŶƚKƉĞƌĂƚŝŽŶƐ ĚŵŝŶŝƐƚƌĂƚŝŽŶΘƵƐƚŽŵĞƌ^ĞƌǀŝĐĞ Ͳ ϭϬϬ ϮϬϬ ϯϬϬ ϰϬϬ ϱϬϬ ϲϬϬ dŚŽƵƐĂŶĚƐEŽŶͲKƉĞƌĂƚŝŶŐdžƉĞŶƐĞďLJdLJƉĞ͗^ĞǁĞƌŽůůĞĐƚŝŽŶ&ƵŶĚ KƚŚĞƌEŽŶͲŽƉĞƌĂƚŝŶŐĞdžƉĞŶƐĞ >ŽƐƐŽŶƐƐĞƚŝƐƉŽƐŝƚŝŽŶ /ŶƚĞƌĞƐƚdžƉĞŶƐĞ 75   Packet Pg. 378 7+,63$*(,17(17,21$//</()7%/$1. 76   Packet Pg. 379 dW/dz/E&KZDd/KE dŚĞƐĞƐĐŚĞĚƵůĞƐĐŽŶƚĂŝŶŝŶĨŽƌŵĂƚŝŽŶƚŽŚĞůƉƚŚĞƌĞĂĚĞƌĂƐƐĞƐƐ ƚŚĞĂĨĨŽƌĚĂďŝůŝƚLJŽĨƚŚĞĞƉĂƌƚŵĞŶƚΖƐĐƵƌƌĞŶƚůĞǀĞůŽĨ ŽƵƚƐƚĂŶĚŝŶŐĚĞďƚĂŶĚĂďŝůŝƚLJƚŽŝƐƐƵĞĚĞďƚŝŶƚŚĞĨƵƚƵƌĞ͘ 77   Packet Pg. 380 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ tĂƚĞƌ&ƵŶĚĞďƚ^ĞƌǀŝĐĞŽǀĞƌĂŐĞ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ &ŝƐĐĂůzĞĂƌ ŶĚĞĚ dŽƚĂů KƉĞƌĂƚŝŶŐ ZĞǀĞŶƵĞ EĞƚKƉĞƌĂƚŝŶŐ džƉĞŶƐĞƐ ;džĐůƵĚŝŶŐͿ ĞƉƌĞĐŝĂƚŝŽŶ EĞƚKƉĞƌĂƚŝŶŐ /ŶĐŽŵĞ;>ŽƐƐͿ EĞƚEŽŶͲ KƉĞƌĂƚŝŶŐ /ŶĐŽŵĞͬ ;džƉĞŶƐĞͿ ŵŽƵŶƚ ǀĂŝůĂďůĞĨŽƌ Ğďƚ^ĞƌǀŝĐĞ WƌŝŶĐŝƉĂů /ŶƚĞƌĞƐƚ dŽƚĂůĞďƚ ^ĞƌǀŝĐĞ ŽǀĞƌĂŐĞ ZĂƚŝŽ ϲͬϯϬͬϮϬϭϯ ϯϳ͕ϴϲϴ͕ϴϰϲ ϯϭ͕ϵϮϰ͕ϴϮϭ ϱ͕ϵϰϰ͕ϬϮϱ Ϯ͕ϰϵϮ͕ϰϰϴ ϴ͕ϰϯϲ͕ϰϳϯ ϭ͕ϮϮϳ͕ϰϵϭ ϱϰϳ͕ϲϭϲϭ͕ϳϳϱ͕ϭϬϳ ϰ͘ϳϱ ϲͬϯϬͬϮϬϭϰ ϯϲ͕ϲϳϭ͕ϵϬϯ ϯϬ͕Ϭϲϵ͕ϵϳϴ ϲ͕ϲϬϭ͕ϵϮϱ Ϯ͕ϱϬϰ͕ϳϬϱ ϵ͕ϭϬϲ͕ϲϯϬ ϭ͕ϲϱϴ͕Ϯϲϱ ϲϲϬ͕ϴϱϰϮ͕ϯϭϵ͕ϭϭϵ ϯ͘ϵϯ ϲͬϯϬͬϮϬϭϱ ϯϯ͕ϭϮϭ͕ϭϮϴ ϯϬ͕ϭϯϵ͕ϰϱϴ Ϯ͕ϵϴϭ͕ϲϳϬ Ϯ͕ϳϬϮ͕ϵϱϯ ϱ͕ϲϴϰ͕ϲϮϯ ϭ͕ϳϰϴ͕Ϭϱϰ ϱϳϬ͕ϰϯϰϮ͕ϯϭϴ͕ϰϴϴ Ϯ͘ϰϱ ϲͬϯϬͬϮϬϭϲ ϯϬ͕ϬϬϭ͕ϴϳϭ Ϯϵ͕ϬϮϱ͕Ϭϯϭ ϵϳϲ͕ϴϰϬ Ϯ͕Ϯϴϯ͕ϮϯϬ ϯ͕ϮϲϬ͕ϬϳϬ ϭ͕ϴϭϯ͕ϱϵϰ ϱϮϯ͕ϮϳϰϮ͕ϯϯϲ͕ϴϲϴ ϭ͘ϰϬ ϲͬϯϬͬϮϬϭϳ ϯϯ͕ϯϱϴ͕ϵϬϳ ϯϬ͕ϱϵϲ͕ϲϮϬ Ϯ͕ϳϲϮ͕Ϯϴϳ Ϯ͕ϱϴϰ͕ϰϲϴ ϱ͕ϯϰϲ͕ϳϱϱ Ϯϰϲ͕ϴϴϳ Ϯϭϴ͕ϴϭϵϰϲϱ͕ϳϬϲ ϭϭ͘ϰϴ ϲͬϯϬͬϮϬϭϴ ϯϴ͕ϮϴϬ͕Ϭϭϲ Ϯϳ͕ϴϳϰ͕ϭϰϴ ϭϬ͕ϰϬϱ͕ϴϲϴ ϯ͕ϭϲϳ͕ϱϵϳ ϭϯ͕ϱϳϯ͕ϰϲϱ ϳϳϬ͕ϬϬϬ Ϯ͕ϮϮϯ͕ϴϯϴϮ͕ϵϵϯ͕ϴϯϴ ϰ͘ϱϯ ϲͬϯϬͬϮϬϭϵ ϯϵ͕Ϭϵϵ͕ϵϲϬ Ϯϳ͕ϰϴϮ͕ϭϯϬ ϭϭ͕ϲϭϳ͕ϴϯϬ ϯ͕ϴϭϬ͕ϰϬϯ ϭϱ͕ϰϮϴ͕Ϯϯϯ ϳϵϱ͕ϬϬϬ Ϯ͕ϭϵϲ͕ϯϴϴϮ͕ϵϵϭ͕ϯϴϴ ϱ͘ϭϲ ϲͬϯϬͬϮϬϮϬ ϰϬ͕Ϯϲϳ͕ϯϳϲ ϯϭ͕Ϭϲϭ͕ϲϬϭ ϵ͕ϮϬϱ͕ϳϳϱ ϯ͕ϲϯϲ͕Ϭϯϵ ϭϮ͕ϴϰϭ͕ϴϭϰ ϴϯϬ͕ϬϬϬ Ϯ͕ϭϲϯ͕ϴϴϴϮ͕ϵϵϯ͕ϴϴϴ ϰ͘Ϯϵ ϲͬϯϬͬϮϬϮϭ ϰϮ͕ϳϱϴ͕ϭϵϮ ϯϰ͕ϲϰϭ͕ϵϲϴ ϴ͕ϭϭϲ͕ϮϮϰ Ϯ͕ϲϯϯ͕ϵϳϴ ϭϬ͕ϳϱϬ͕ϮϬϮ ϴϲϬ͕ϬϬϬ Ϯ͕ϭϯϬ͕ϬϴϴϮ͕ϵϵϬ͕Ϭϴϴ ϯ͘ϲϬ ϲͬϯϬͬϮϬϮϮ ϰϯ͕ϭϱϬ͕ϭϮϰ ϯϮ͕ϯϳϮ͕ϲϮϭ ϭϬ͕ϳϳϳ͕ϱϬϯ Ϯ͕ϯϯϮ͕ϰϰϬ ϭϯ͕ϭϬϵ͕ϵϰϯ ϵϬϬ͕ϬϬϬ Ϯ͕ϬϵϬ͕ϯϴϴϮ͕ϵϵϬ͕ϯϴϴ ϰ͘ϯϴ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ 78   Packet Pg. 381 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ ^ĞǁĞƌ&ƵŶĚĞďƚ^ĞƌǀŝĐĞŽǀĞƌĂŐĞ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ &ŝƐĐĂůzĞĂƌ ŶĚĞĚ dŽƚĂů KƉĞƌĂƚŝŶŐ ZĞǀĞŶƵĞ EĞƚKƉĞƌĂƚŝŶŐ džƉĞŶƐĞƐ ;džĐůƵĚŝŶŐͿ ĞƉƌĞĐŝĂƚŝŽŶ EĞƚKƉĞƌĂƚŝŶŐ /ŶĐŽŵĞ;>ŽƐƐͿ EĞƚEŽŶͲ KƉĞƌĂƚŝŶŐ /ŶĐŽŵĞͬ ;džƉĞŶƐĞͿ ŵŽƵŶƚ ǀĂŝůĂďůĞĨŽƌ Ğďƚ^ĞƌǀŝĐĞ WƌŝŶĐŝƉĂů /ŶƚĞƌĞƐƚ dŽƚĂůĞďƚ ^ĞƌǀŝĐĞ ŽǀĞƌĂŐĞ ZĂƚŝŽ ϲͬϯϬͬϮϬϭϯ Ϯϱ͕ϲϳϬ͕ϳϳϰ ϭϴ͕ϱϰϳ͕ϱϭϯ ϳ͕ϭϮϯ͕Ϯϲϭ ;ϲϯϬ͕ϲϵϬͿ ϲ͕ϰϵϮ͕ϱϳϭ ϰ͕ϳϮϰ͕ϮϮϳ ϳϱϳ͕ϬϭϬϱ͕ϰϴϭ͕Ϯϯϳ ϭ͘ϭϴ ϲͬϯϬͬϮϬϭϰ Ϯϰ͕ϳϯϰ͕ϰϮϱ ϭϲ͕ϳϰϵ͕ϳϳϴ ϳ͕ϵϴϰ͕ϲϰϳ ;ϭ͕ϭϮϵ͕ϭϲϵͿ ϲ͕ϴϱϱ͕ϰϳϴ ϰ͕ϰϮϰ͕ϬϵϬ ϳϰϳ͕ϰϲϬϱ͕ϭϳϭ͕ϱϱϬ ϭ͘ϯϯ ϲͬϯϬͬϮϬϭϱ Ϯϱ͕ϰϭϬ͕ϳϰϬ ϭϲ͕ϳϰϵ͕ϳϳϴ ϴ͕ϲϲϬ͕ϵϲϮ ϭ͕Ϭϵϴ͕ϴϳϳ ϵ͕ϳϱϵ͕ϴϯϵ ϰ͕ϲϮϵ͕ϰϮϱ ϱϲϴ͕ϴϴϴϱ͕ϭϵϴ͕ϯϭϯ ϭ͘ϴϴ ϲͬϯϬͬϮϬϭϲ Ϯϱ͕ϰϭϬ͕ϳϰϬ ϭϳ͕ϰϯϴ͕ϵϵϳ ϳ͕ϵϳϭ͕ϳϰϯ ;ϮϮϰ͕ϭϭϵͿ ϳ͕ϳϰϳ͕ϲϮϰ ϯϬϬ͕ϬϬϬ ͲϯϬϬ͕ϬϬϬ Ϯϱ͘ϴϯ ϲͬϯϬͬϮϬϭϳ Ϯϴ͕ϲϭϮ͕Ϭϭϵ ϮϬ͕Ϭϯϲ͕ϵϭϲ ϴ͕ϱϳϱ͕ϭϬϯ ϯϵ͕Ϯϵϵ ϴ͕ϲϭϰ͕ϰϬϮ ϯϬϬ͕ϬϬϬ ϭϯϮ͕ϲϱϵϰϯϮ͕ϲϱϵ ϭϵ͘ϵϭ ϲͬϯϬͬϮϬϭϴ ϯϬ͕ϳϯϯ͕ϰϱϯ ϭϴ͕ϱϯϵ͕ϵϰϭ ϭϮ͕ϭϵϯ͕ϱϭϮ ;ϳϮϭ͕ϭϬϯͿ ϭϭ͕ϰϳϮ͕ϰϬϵ ϴϵϬ͕ϬϬϬ ϭ͕ϯϴϮ͕ϳϴϮϮ͕ϮϳϮ͕ϳϴϮ ϱ͘Ϭϱ ϲͬϯϬͬϮϬϭϵ ϯϬ͕ϱϰϲ͕ϭϴϭ ϮϬ͕ϴϰϭ͕ϲϵϵ ϵ͕ϳϬϰ͕ϰϴϮ ϭ͕ϯϲϭ͕ϵϯϱ ϭϭ͕Ϭϲϲ͕ϰϭϳ ϵϭϬ͕ϬϬϬ ϭ͕ϯϱϲ͕ϭϮϱϮ͕Ϯϲϲ͕ϭϮϱ ϰ͘ϴϴ ϲͬϯϬͬϮϬϮϬ ϯϬ͕ϯϵϳ͕ϬϵϮ ϮϬ͕Ϭϱϭ͕ϰϯϭ ϭϬ͕ϯϰϱ͕ϲϲϭ ϭ͕ϯϮϮ͕ϯϲϳ ϭϭ͕ϲϲϴ͕ϬϮϴ ϵϯϱ͕ϬϬϬ ϭ͕ϯϯϭ͕ϮϮϱϮ͕Ϯϲϲ͕ϮϮϱ ϱ͘ϭϱ ϲͬϯϬͬϮϬϮϭ ϯϬ͕ϯϲϭ͕ϭϭϲ ϮϮ͕ϰϳϴ͕ϱϭϲ ϳ͕ϴϴϮ͕ϲϬϬ ϭϵ͕ϰϳϮ ϳ͕ϵϬϮ͕ϬϳϮ ϲϲϱ͕ϬϬϬ ϭ͕ϯϬϭ͕ϵϬϬϭ͕ϵϲϲ͕ϵϬϬ ϰ͘ϬϮ ϲͬϯϬͬϮϬϮϮ ϯϰ͕ϭϳϭ͕ϭϲϬ ϮϮ͕ϰϲϱ͕ϮϭϮ ϭϭ͕ϳϬϱ͕ϵϰϴ ;ϭ͕ϬϮϭ͕ϵϴϭͿ ϭϬ͕ϲϴϯ͕ϵϲϳ ϳϬϬ͕ϬϬϬ ϭ͕Ϯϲϳ͕ϳϳϱϭ͕ϵϲϳ͕ϳϳϱ ϱ͘ϰϮ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ 79   Packet Pg. 382 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ ZĂƚŝŽƐŽĨKƵƚƐƚĂŶĚŝŶŐĞďƚďLJdLJƉĞ;/ŶdŚŽƵƐĂŶĚƐŽĨŽůůĂƌƐͿ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ &ŝƐĐĂůzĞĂƌ ŶĚĞĚ ZĞǀĞŶƵĞŽŶĚƐ EŽƚĞƐͬ>ŽĂŶƐ WĂLJĂďůĞ ĞƌƚŝĨŝĐĂƚĞƐŽĨ WĂƌƚŝĐŝƉĂƚŝŽŶ ĂƉŝƚĂů>ĞĂƐĞƐ dŽƚĂů WĞƌĐĞŶƚĂŐĞŽĨ WĞƌƐŽŶĂů /ŶĐŽŵĞ ĞďƚWĞƌ ĂƉŝƚĂ  ϲͬϯϬͬϮϬϭϯ Ͳ Ϯϵ͕ϰϱϮ ϭϮ͕ϭϰϱ Ͳ ϰϭ͕ϱϵϳ Ϭ͘ϲй Ϭ͘ϮϬ ϲͬϯϬͬϮϬϭϰ Ͳ Ϯϲ͕ϭϳϰ ϵ͕ϯϰϬ Ͳ ϯϱ͕ϱϭϰ Ϭ͘ϱй Ϭ͘ϭϳ ϲͬϯϬͬϮϬϭϱ Ͳ ϮϮ͕ϴϮϲ ϲ͕ϯϳϱ Ͳ Ϯϵ͕ϮϬϭ Ϭ͘ϰй Ϭ͘ϭϰ ϲͬϯϬͬϮϬϭϲ Ͳ ϮϬ͕ϱϲϵ Ͳ Ͳ ϮϬ͕ϱϲϵ Ϭ͘ϯй Ϭ͘ϭϬ ϲͬϯϬͬϮϬϭϳ ϴϴ͕ϲϱϲ ϵϬϬ Ͳ Ͳ ϴϵ͕ϱϱϲ ϭ͘Ϭй Ϭ͘ϯϵ ϲͬϯϬͬϮϬϭϴ ϴϳ͕ϬϵϮ ϲϬϬ Ͳ Ͳ ϴϳ͕ϲϵϮ ϭ͘Ϭй Ϭ͘ϯϳ ϲͬϯϬͬϮϬϭϵ ϴϱ͕ϰϴϯ ϯϬϬ Ͳ Ͳ ϴϱ͕ϳϴϯ ϭ͘Ϭй Ϭ͘ϯϵ ϲͬϯϬͬϮϬϮϬ ϴϯ͕ϴϭϰ Ͳ Ͳ Ͳ ϴϯ͕ϴϭϰ ϭ͘Ϭй Ϭ͘ϯϵ ϲͬϯϬͬϮϬϮϭ ϴϮ͕Ϭϴϱ Ͳ Ͳ Ͳ ϴϮ͕Ϭϴϱ ϭ͘ϭй Ϭ͘ϯϴ ϲͬϯϬͬϮϬϮϮ ϴϬ͕ϮϮϭ Ͳ Ͳ Ͳ ϴϬ͕ϮϮϭ ϭ͘ϳй Ϭ͘ϯϲ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ 80   Packet Pg. 383 DK'ZW,/EKEKD//E&KZDd/KE dŚĞƐĞƐĐŚĞĚƵůĞƐŽĨĨĞƌĚĞŵŽŐƌĂƉŚŝĐĂŶĚĞĐŽŶŽŵŝĐŝŶĚŝĐĂƚŽƌƐ ƚŽŚĞůƉƚŚĞƌĞĂĚĞƌƵŶĚĞƌƐƚĂŶĚƚŚĞĞŶǀŝƌŽŶŵĞŶƚǁŝƚŚŝŶǁŚŝĐŚ ƚŚĞĞƉĂƌƚŵĞŶƚΖƐĨŝŶĂŶĐŝĂůĂĐƚŝǀŝƚŝĞƐƚĂŬĞƉůĂĐĞ͘ 81   Packet Pg. 384 7+,63$*(,17(17,21$//</()7%/$1. 82   Packet Pg. 385 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ ĞŵŽŐƌĂƉŚŝĐ^ƚĂƚŝƐƚŝĐƐ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ &ŝƐĐĂůzĞĂƌ ŶĚĞĚ ƐƚŝŵĂƚĞĚ WŽƉƵůĂƚŝŽŶ;ϭͿ WĞƌƐŽŶĂů /ŶĐŽŵĞ;/Ŷ dŚŽƵƐĂŶĚƐͿ;ϮͿ WĞƌĂƉŝƚĂ WĞƌƐŽŶĂů /ŶĐŽŵĞ;ϮͿ hŶĞŵƉůŽLJŵĞŶƚZĂƚĞ ;ϯͿ ϲͬϯϬͬϮϬϭϯ Ϯϭϭ͕ϵϵϰ ϳ͕ϬϬϭ͕ϭϬϮϯϯ͕ϬϮϱϵ͘ϴϬй ϲͬϯϬͬϮϬϭϰ ϮϭϮ͕ϱϴϰ ϳ͕ϬϳϬ͕ϭϭϵϯϯ͕ϮϱϴϭϬ͘ϭϬй ϲͬϯϬͬϮϬϭϱ Ϯϭϯ͕ϵϯϯ ϳ͕ϲϰϱ͕ϴϳϵϯϱ͕ϳϰϬϲ͘ϴϬй ϲͬϯϬͬϮϬϭϲ Ϯϭϱ͕ϰϵϭ ϳ͕ϵϯϭ͕ϱϳϳϯϲ͕ϴϬϳϲ͘ϯϬй ϲͬϯϬͬϮϬϭϳ Ϯϭϲ͕ϵϳϮ ϴ͕ϰϱϵ͕ϯϬϰϯϴ͕ϵϴϴϱ͘ϱϬй ϲͬϯϬͬϮϬϭϴ ϮϮϭ͕ϭϯϬ ϴ͕ϱϮϯ͕ϲϳϳϯϴ͕ϱϰϲϱ͘ϳϬй ϲͬϯϬͬϮϬϭϵ Ϯϭϵ͕Ϯϯϯ ϴ͕ϱϬϵ͕ϳϰϴϯϴ͕ϴϭϲϰ͘ϭϬй ϲͬϯϬͬϮϬϮϬ Ϯϭϳ͕ϲϳϭ ϴ͕ϭϱϵ͕Ϯϴϵϯϳ͕ϰϴϱϭϭ͘ϯϬй ϲͬϯϬͬϮϬϮϭ Ϯϭϲ͕Ϯϵϭ ϳ͕ϳϮϯ͕ϯϭϵϯϱ͕ϳϬϴϴ͘ϭϬй ϲͬϯϬͬϮϬϮϮ ϮϮϮ͕ϮϬϯ ϰ͕ϲϮϰ͕ϰϴϵϮϬ͕ϴϭϮϯ͘ϵϬй ;ϭͿĂůŝĨŽƌŶŝĂĞƉĂƌƚŵĞŶƚŽĨ&ŝŶĂŶĐĞ ;ϮͿh͘^͘ĞƉĂƌƚŵĞŶƚŽĨŽŵŵĞƌĐĞ͕ƵƌĞĂƵŽĨĐŽŶŽŵŝĐŶĂůLJƐĨŽƌϮϬϬϲͲϮϬϭϯ;ZŝǀĞƌƐŝĚĞͲ^ĂŶĞƌŶĂƌĚŝŶŽD^Ϳ ;ϯͿ^ƚĂƚĞŽĨĂůŝĨŽƌŶŝĂ͕ĐŽŶŽŵŝĐĞǀĞůŽƉŵĞŶƚĞƉĂƌƚŵĞŶƚ͖ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽĐŽŶŽŵŝĐĞǀĞůŽƉŵĞŶƚĞƉƚ ϮϬϲ͕ϬϬϬ ϮϬϴ͕ϬϬϬ ϮϭϬ͕ϬϬϬ ϮϭϮ͕ϬϬϬ Ϯϭϰ͕ϬϬϬ Ϯϭϲ͕ϬϬϬ Ϯϭϴ͕ϬϬϬ ϮϮϬ͕ϬϬϬ ϮϮϮ͕ϬϬϬ ϮϮϰ͕ϬϬϬ WŽƉƵůĂƚŝŽŶ Ͳ ϭ͕ϬϬϬ͕ϬϬϬ Ϯ͕ϬϬϬ͕ϬϬϬ ϯ͕ϬϬϬ͕ϬϬϬ ϰ͕ϬϬϬ͕ϬϬϬ ϱ͕ϬϬϬ͕ϬϬϬ ϲ͕ϬϬϬ͕ϬϬϬ ϳ͕ϬϬϬ͕ϬϬϬ ϴ͕ϬϬϬ͕ϬϬϬ ϵ͕ϬϬϬ͕ϬϬϬ WĞƌƐŽŶĂů/ŶĐŽŵĞ Ͳ ϱ͕ϬϬϬ ϭϬ͕ϬϬϬ ϭϱ͕ϬϬϬ ϮϬ͕ϬϬϬ Ϯϱ͕ϬϬϬ ϯϬ͕ϬϬϬ ϯϱ͕ϬϬϬ ϰϬ͕ϬϬϬ ϰϱ͕ϬϬϬ WĞƌĂƉŝƚĂWĞƌƐŽŶĂů/ŶĐŽŵĞ Ϭ͘ϬϬй Ϯ͘ϬϬй ϰ͘ϬϬй ϲ͘ϬϬй ϴ͘ϬϬй ϭϬ͘ϬϬй ϭϮ͘ϬϬй hŶĞŵƉůŽLJŵĞŶƚ 83   Packet Pg. 386 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ DĂũŽƌŵƉůŽLJĞƌƐ ƵƌƌĞŶƚzĞĂƌĂŶĚEŝŶĞzĞĂƌƐŐŽ &ŝƐĐĂůzĞĂƌϮϬϮϮ &ŝƐĐĂůzĞĂƌϮϬϭϯΎ ŵƉůŽLJĞƌ ZĂŶŬŝŶŐ EƵŵďĞƌŽĨŵƉůŽLJĞĞƐ ZĂŶŬŝŶŐ EƵŵďĞƌŽĨŵƉůŽLJĞĞƐ ŽƵŶƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽ ϭ ϮϮ͕ϳϭϵ ϵ ϭϬϬϬн ^ƚĂƚĞƌƌŽƚŚĞƌƐ Ϯ ϭϴ͕ϬϬϬ ^ĂŶĞƌŶĂƌĚŝŶŽŝƚLJhŶŝĨŝĞĚ^ĐŚŽŽůŝƐƌŝĐƚ ϯ ϲ͕ϰϬϬ ϱ ϭϬϬϬн <ĂŝƐĞƌWĞƌŵĂŶĞŶƚĞͲ&ŽŶƚĂŶĂDĞĚ ϰ ϭ͕ϬϬϬͲϰ͕ϵϵϵ ƌƌŽǁŚĞĂĚƌĞŐŝŽŶĂůDĞĚŝĐĂůĞŶƚĞƌ ϱ ϭ͕ϬϬϬͲϰ͕ϵϵϵ ϭ ϭϬϬϬн ŶǀŝƌŽŶŵĞŶƚĂů^LJƐƚĞŵƐZĞƐĞĂƌĐŚ ϲ ϭ͕ϬϬϬͲϰ͕ϵϵϵ ϭϬ ϭϬϬϬн ĂůŝĨŽƌŶŝĂ^ƚĂƚĞhŶǀĞƌƐŝƚLJͲ^ĂŶĞƌŶĂƌĚŝŶŽ ϳ ϭ͕ϬϬϬͲϰ͕ϵϵϵ ϰ ϭϬϬϬн >,W,ĞĂůƚŚ^ĞƌǀŝĐĞƐ ϴ ϭ͕ϬϬϬͲϰ͕ϵϵϵ Ϯ ϭϬϬϬн ^ĂŶĞƌŶĂƌĚŝŶŽŽƵŶƚLJ^ŚĞƌŝĨĨ ϵ ϭ͕ϬϬϬͲϰ͕ϵϵϵ ϲ ϭϬϬϬн ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽ ϭϬ ϳϱϬ ϯ ϭϬϬϬн ^ĂŶĞƌŶĂƌĚŝŶŽŽƵŶƚLJ^ƵƉĞƌŝŶƚĞŶĚĞŶƚŽĨ^ĐŚŽŽůƐ ϳ ϭϬϬϬн ^ĂŶDĂŶƵĞůĂŶĚŽĨDŝƐƐŝŽŶ/ŶĚŝĂŶƐ ϴ ϭϬϬϬн ΎĐƚƵĂůĞŵƉůŽLJŵĞŶƚĨŝŐƵƌĞƐŶŽƚĂǀĂŝůĂďůĞ ^ŽƵƌĐĞ͗ĐŽŶŽŵŝĐĞǀĞůŽƉŵĞŶƚĞƉĂƌƚŵĞŶƚ>ĂďŽƌDĂƌŬĞƚ/ŶĨŽƌŵĂƚŝŽŶ͕ŐĞŶĐLJtĞďƐŝƚĞƐĂŶĚŝƚLJΖƐŶŶƵĂů&ŝŶĂŶĐŝĂůZĞƉŽƌƚ͘ 84   Packet Pg. 387 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ ƵƚŚŽƌŝnjĞĚWŽƐŝƚŝŽŶƐ,ŝƐƚŽƌLJ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ zĞĂƌŶĚ tĂƚĞƌ&ƵŶĚ ^ĞǁĞƌdƌĞĂƚŵĞŶƚ &ƵŶĚ ^ĞǁĞƌŽůůĞĐƚŝŽŶ &ƵŶĚ dŽƚĂů ϮϬϭϯ ϭϳϯ͘ϱ ϴϮ͘Ϭ Ϭ͘Ϭ Ϯϱϱ͘ϱ ϮϬϭϰ ϭϴϱ͘ϱ ϳϮ͘ϱ Ϭ͘Ϭ Ϯϱϴ͘Ϭ ϮϬϭϱ ϭϴϯ͘ϱ ϳϰ͘ϱ Ϭ͘Ϭ Ϯϱϴ͘Ϭ ϮϬϭϲ ϭϴϴ͘ϱ ϴϯ͘ϱ Ϭ͘Ϭ ϮϳϮ͘Ϭ ϮϬϭϳ Ϯϭϲ͘ϴ ϳϬ͘ϯ ϭϯ͘Ϭ ϯϬϬ͘Ϭ ϮϬϭϴ Ϯϭϱ͘Ϭ ϳϮ͘Ϭ ϭϮ͘Ϭ Ϯϵϵ͘Ϭ ϮϬϭϵ Ϯϭϱ͘Ϭ ϳϮ͘Ϭ ϭϮ͘Ϭ Ϯϵϵ͘Ϭ ϮϬϮϬ Ϯϭϱ͘Ϭ ϳϮ͘Ϭ ϭϮ͘Ϭ Ϯϵϵ͘Ϭ ϮϬϮϭ ϭϵϵ͘Ϭ ϴϱ͘Ϭ ϭϮ͘Ϭ Ϯϵϲ͘Ϭ ϮϬϮϮ ϭϵϵ͘Ϭ ϴϰ͘ϱ ϭϮ͘Ϭ Ϯϵϱ͘ϱ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐƌĞĐŽƌĚƐ  EŽƚĞ͗dŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶhƚŝůŝƚLJǁĂƐƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚĞĞƉĂƌƚŵĞŶƚŽŶDĂLJϭ͕ϮϬϭϳ͘WƌŝŽƌ LJĞĂƌĚĂƚĂŝƐƵŶĂǀĂŝůĂďůĞ͘ Ϭ͘Ϭ ϱϬ͘Ϭ ϭϬϬ͘Ϭ ϭϱϬ͘Ϭ ϮϬϬ͘Ϭ ϮϱϬ͘Ϭ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮ ƵƚŚŽƌŝnjĞĚWŽƐŝƚŝŽŶ,ŝƐƚŽƌLJ tĂƚĞƌ&ƵŶĚ ^ĞǁĞƌdƌĞĂƚŵĞŶƚ&ƵŶĚ ^ĞǁĞƌŽůůĞĐƚŝŽŶ&ƵŶĚ 85   Packet Pg. 388 7+,63$*(,17(17,21$//</()7%/$1. 86   Packet Pg. 389 ZsEhW/dz dŚĞƐĞƐĐŚĞĚƵůĞƐĐŽŶƚĂŝŶŝŶĨŽƌŵĂƚŝŽŶƚŽŚĞůƉƚŚĞƌĞĂĚĞƌĂƐƐĞƐƐ ƚŚĞĞƉĂƌƚŵĞŶƚΖƐƐŝŐŶŝĨŝĐĂŶƚƌĞǀĞŶƵĞƐŽƵƌĐĞƐ͘  87   Packet Pg. 390 7+,63$*(,17(17,21$//</()7%/$1. 88   Packet Pg. 391 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ tĂƚĞƌZĂƚĞƐ͗DŝŶŝŵƵŵDŽŶƚŚůLJŚĂƌŐĞ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ ĨĨĞĐƚŝǀĞ ĂƚĞ ϭͬϮΗ ϱͬϴΗ ϯͬϰΗ ϭΗ ϭͲϭͬϮΗ ϮΗ ϯΗ ϰΗ ϲΗ ϴΗ ϭϬΗ ϭϮΗ ϳͬϭͬϮϬϭϯ ϭϮ͘ϵϬ ϭϮ͘ϵϬ ϭϲ͘ϭϱ ϮϮ͘ϲϬ ϯϴ͘ϴϬ ϱϴ͘ϮϬ ϭϬϯ͘ϱϬ ϭϲϴ͘ϮϬ ϯϯϬ͘ϬϬ ϱϮϰ͘ϭϱ ϳϱϬ͘ϲϱ Ύ ϳͬϭͬϮϬϭϰ ϭϮ͘ϵϬ ϭϮ͘ϵϬ ϭϲ͘ϭϱ ϮϮ͘ϲϬ ϯϴ͘ϴϬ ϱϴ͘ϮϬ ϭϬϯ͘ϱϬ ϭϲϴ͘ϮϬ ϯϯϬ͘ϬϬ ϱϮϰ͘ϭϱ ϳϱϬ͘ϲϱ Ύ ϳͬϭͬϮϬϭϱ ϭϮ͘ϵϬ ϭϮ͘ϵϬ ϭϲ͘ϭϱ ϮϮ͘ϲϬ ϯϴ͘ϴϬ ϱϴ͘ϮϬ ϭϬϯ͘ϱϬ ϭϲϴ͘ϮϬ ϯϯϬ͘ϬϬ ϱϮϰ͘ϭϱ ϳϱϬ͘ϲϱ Ύ ϭϬͬϭͬϮϬϭϲ ϭϲ͘Ϭϵ ϭϲ͘Ϭϵ ϮϬ͘ϭϱ Ϯϴ͘ϭϵ ϰϴ͘ϰϬ ϳϮ͘ϲϬ ϭϮϵ͘ϭϮ ϭϵϳ͘ϯϲ ϰϭϭ͘ϲϴ ϲϱϯ͘ϴϴ ϵϯϲ͘ϰϰ Ύ ϳͬϭͬϮϬϭϳ ϭϵ͘ϱϴ ϭϵ͘ϱϴ Ϯϰ͘ϱϭ ϯϰ͘ϯϬ ϱϴ͘ϴϴ ϴϴ͘ϯϮ ϭϱϳ͘Ϭϲ ϮϰϬ͘Ϭϳ ϱϬϬ͘ϳϴ ϳϵϱ͘ϰϬ ϭ͕ϭϯϵ͘ϭϮ Ύ ϳͬϭͬϮϬϭϴ Ϯϯ͘ϯϵ Ϯϯ͘ϯϵ Ϯϵ͘Ϯϴ ϰϬ͘ϵϴ ϳϬ͘ϯϱ ϭϬϱ͘ϱϮ ϭϴϳ͘ϲϲ Ϯϴϲ͘ϲϯ ϱϵϴ͘ϯϯ ϵϱϬ͘ϯϰ ϭ͕ϯϲϭ͘Ϭϭ Ύ ϳͬϭͬϮϬϭϵ Ϯϯ͘ϯϵ Ϯϯ͘ϯϵ Ϯϵ͘Ϯϴ ϰϬ͘ϵϴ ϳϬ͘ϯϱ ϭϬϱ͘ϱϮ ϭϴϳ͘ϲϲ Ϯϴϲ͘ϲϯ ϱϵϴ͘ϯϯ ϵϱϬ͘ϯϰ ϭ͕ϯϲϭ͘Ϭϭ Ύ ϳͬϭͬϮϬϮϬ Ϯϯ͘ϯϵ Ϯϯ͘ϯϵ Ϯϵ͘Ϯϴ ϰϬ͘ϵϴ ϳϬ͘ϯϱ ϭϬϱ͘ϱϮ ϭϴϳ͘ϲϲ Ϯϴϲ͘ϲϯ ϱϵϴ͘ϯϯ ϵϱϬ͘ϯϰ ϭ͕ϯϲϭ͘Ϭϭ Ύ ϳͬϭͬϮϬϮϭ Ϯϯ͘ϯϵ Ϯϯ͘ϯϵ Ϯϵ͘Ϯϴ ϰϬ͘ϵϴ ϳϬ͘ϯϱ ϭϬϱ͘ϱϮ ϭϴϳ͘ϲϲ Ϯϴϲ͘ϲϯ ϱϵϴ͘ϯϯ ϵϱϬ͘ϯϰ ϭ͕ϯϲϭ͘Ϭϭ Ύ ϰͬϭͬϮϬϮϮ ϮϬ͘ϰϵ ϮϬ͘ϰϵ Ϯϴ͘ϭϳ ϰϯ͘ϱϭ ϴϭ͘ϴϳ ϭϮϳ͘ϵϭ ϯϴϴ͘ϳϳ ϳϳϮ͘ϯϴ ϭ͕ϮϯϮ͘ϳϮ Ϯ͕ϭϱϯ͘ϰϬ ϰ͕ϮϮϰ͘ϵϮ ϰ͕ϮϮϰ͘ϵϮ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐZĞĐŽƌĚƐ ;ΨͬŵŽŶƚŚͿ Ύ/ŶĨŽƌŵĂƚŝŽŶŶŽƚƌĞƉŽƌƚĞĚ͘ 89   Packet Pg. 392 DƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ tĂƚĞƌZĂƚĞƐ͗ŽŵŵŽĚŝƚLJŚĂƌŐĞƐ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ ϭͬϭͬϮϬϭϯ ϭͬϭͬϮϬϭϰ ϭϬͬϭͬϮϬϭϱ ϳͬϭͬϮϬϭϲ ϳͬϭͬϮϬϭϳ ϳͬϭͬϮϬϭϴ ϳͬϭͬϮϬϭϵ ƵƐƚŽŵĞƌůĂƐƐ ^ŝŶŐůĞ&ĂŵŝůLJZĞƐŝĚĞŶƚŝĂů dŝĞƌϭ;ϬͲϭϯ,&Ϳ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϳ ϭ͘ϰϬ ϭ͘ϰϯ ϭ͘ϰϯ dŝĞƌϮ;ϭϰͲϮϯ,&Ϳ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϳ ϭ͘ϰϬ ϭ͘ϰϯ ϭ͘ϰϯ dŝĞƌϯ;Ϯϰн,&Ϳ ϭ͘ϳϬ ϭ͘ϳϬ ϭ͘ϳϬ ϭ͘ϴϲ ϭ͘ϴϵ ϭ͘ϵϮ ϭ͘ϵϮ DƵůƚŝͲ&ĂŝŵůLJZĞƐŝĚĞŶƚŝĂů ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϳ ϭ͘ϰϬ ϭ͘ϰϯ ϭ͘ϰϯ ŽŵŵĞƌĐŝĂů ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϳ ϭ͘ϰϬ ϭ͘ϰϯ ϭ͘ϰϯ /ƌƌŝŐĂƚŝŽŶ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϳ ϭ͘ϰϬ ϭ͘ϰϯ ϭ͘ϰϯ /ŶƐƚŝƚƵƚŝŽŶĂů ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϳ ϭ͘ϰϬ ϭ͘ϰϯ ϭ͘ϰϯ KƚŚĞƌ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϳ ϭ͘ϰϬ ϭ͘ϰϯ ϭ͘ϰϯ ΎWƌŝŽƌLJĞĂƌƐ;ϬϳͬϬϭͬϭϯͲϬϳͬϬϭͬϮϭͿĐŽŵŵŽĚŝƚLJĐŚĂƌŐĞƐƌĞĨůĞĐƚƌĂƚĞƐŝŶĐůƵĚŝŶŐĐŽŶƐĞƌǀĂƚŝŽŶ͕ƌĞƉůĞŶŝƐŚŵĞŶƚĂŶĚ ǁŚŝĐŚǁĞƌĞĐŽŶƐŽůŝĚĂƚĞĚǁŝƚŚƚŚĞƌĂƚĞƐĂĚŽƉƚĞĚŽŶϬϰͬϬϭͬϮϮ͘ 90   Packet Pg. 393 DƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ tĂƚĞƌZĂƚĞƐ͗ŽŵŵŽĚŝƚLJŚĂƌŐĞƐ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ ϳͬϭͬϮϬϮϬ ϳͬϭͬϮϬϮϭ ϰͬϭͬϮϬϮϮ ϭ͘ϰϯ ϭ͘ϰϯ ϭ͘ϯϱ ϭ͘ϰϯ ϭ͘ϰϯ ϭ͘ϴϯ ϭ͘ϵϮ ϭ͘ϵϮ Ϯ͘ϯϯ ϭ͘ϰϯ ϭ͘ϰϯ ϭ͘ϱϭ ϭ͘ϰϯ ϭ͘ϰϯ ϭ͘ϲϱ ϭ͘ϰϯ ϭ͘ϰϯ Ϯ͘ϯϮ ϭ͘ϰϯ ϭ͘ϰϯ Ϯ͘Ϭϯ ϭ͘ϰϯ ϭ͘ϰϯ ϯ͘ϴϮ ĚĞůĞǀĂƚŝŽŶnjŽŶĞĐŚĂƌŐĞƐ 91   Packet Pg. 394 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ tĂƚĞƌZĂƚĞƐ͗ůĞǀĂƚŝŽŶŚĂƌŐĞƐΨƉĞƌ,& >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ ĨĨĞĐƚŝǀĞĂƚĞ ŽŶĞϭ ŽŶĞϮ ŽŶĞϯ ŽŶĞϰ ŽŶĞϱ ŽŶĞϲ ϬϳͬϬϭͬϭϯ Ϭ͘ϭϭ Ϭ͘ϭϵ Ϭ͘ϭϳ Ϭ͘ϭϰ Ϭ͘Ϯϯ Ϭ͘Ϯϯ ϬϳͬϬϭͬϭϰ Ϭ͘ϭϭ Ϭ͘ϭϵ Ϭ͘ϭϳ Ϭ͘ϭϰ Ϭ͘Ϯϯ Ϭ͘Ϯϯ ϬϳͬϬϭͬϭϱ Ϭ͘ϭϭ Ϭ͘ϭϵ Ϭ͘ϭϳ Ϭ͘ϭϰ Ϭ͘Ϯϯ Ϭ͘Ϯϯ ϭϬͬϬϭͬϭϲ Ϭ͘ϭϭ Ϭ͘ϭϵ Ϭ͘ϭϳ Ϭ͘ϭϰ Ϭ͘Ϯϯ Ϭ͘Ϯϯ ϬϳͬϬϭͬϭϳ Ϭ͘ϭϭ Ϭ͘ϭϵ Ϭ͘ϭϳ Ϭ͘ϭϰ Ϭ͘Ϯϯ Ϭ͘Ϯϯ ϬϳͬϬϭͬϭϴ Ϭ͘ϭϭ Ϭ͘ϭϵ Ϭ͘ϭϳ Ϭ͘ϭϰ Ϭ͘Ϯϯ Ϭ͘Ϯϯ ϬϳͬϬϭͬϭϵ Ϭ͘ϭϭ Ϭ͘ϭϵ Ϭ͘ϭϳ Ϭ͘ϭϰ Ϭ͘Ϯϯ Ϭ͘Ϯϯ ϬϳͬϬϭͬϮϬ Ϭ͘ϭϭ Ϭ͘ϭϵ Ϭ͘ϭϳ Ϭ͘ϭϰ Ϭ͘Ϯϯ Ϭ͘Ϯϯ ϬϳͬϬϭͬϮϭ Ϭ͘ϭϭ Ϭ͘ϭϵ Ϭ͘ϭϳ Ϭ͘ϭϰ Ϭ͘Ϯϯ Ϭ͘Ϯϯ ϰͬϭͬϮϬϮϮΎ Eͬ Eͬ Eͬ Eͬ Eͬ Eͬ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐƌĞĐŽƌĚƐ ΎůĞǀĂƚŝŽŶĐŚĂƌŐĞǁĂƐĞůŝŵŝŶĂƚĞĚŝŶǁŝƚŚƚŚĞƌĂƚĞĂĚŽƉƚŝŽŶŽŶϬϰͬϬϭͬϮϮ͘ 92   Packet Pg. 395 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ tĂƚĞƌŽŶŶĞĐƚŝŽŶƐĂŶĚZĞǀĞŶƵĞƐďLJhƐĞƌdLJƉĞ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ hƐĞƌdLJƉĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ^ŝŶŐůĞĨĂŵŝůLJ ϯϱ͕ϳϰϰ Ϯϯ͕ϳϲϭ͕ϭϰϱΨ ϯϱ͕ϵϵϱ Ϯϯ͕ϴϳϱ͕ϳϲϭΨ ϯϲ͕ϬϰϮ ϮϮ͕ϵϬϵ͕ϬϱϰΨ ϯϲ͕ϬϬϲ Ϯϭ͕ϱϳϵ͕ϲϵϯΨ DƵůƚŝƉůĞĨĂŵŝůLJ Ϯ͕ϵϬϱ ϱ͕ϱϲϮ͕ϬϭϮ Ϯ͕ϵϬϴ ϱ͕ϱϲϵ͕ϰϯϲ Ϯ͕ϵϬϳ ϱ͕ϮϮϮ͕ϯϰϱ Ϯ͕ϵϬϯ ϱ͕ϭϱϳ͕ϵϵϳ ŽŵŵĞƌĐŝĂů ϯ͕ϭϱϭ ϲ͕ϵϳϲ͕ϴϵϯ ϯ͕ϭϱϰ ϲ͕ϱϳϵ͕ϯϳϯ ϯ͕ϭϭϳ ϲ͕ϰϴϮ͕ϱϲϬ ϯ͕ϭϬϰ ϲ͕ϯϮϬ͕ϵϬϬ >ĂŶĚƐĐĂƉĞ ϭ͕ϭϴϰ ϱ͕ϱϭϱ͕Ϭϰϲ ϭ͕ϭϵϮ ϱ͕Ϯϳϳ͕ϭϭϰ ϭ͕ϭϴϭ ϰ͕ϱϰϮ͕ϭϬϴ ϭ͕ϭϱϬ ϰ͕Ϯϱϲ͕ϯϵϬ KƚŚĞƌ Ϯ͕Ϯϵϲ ϴϭϭ͕Ϯϭϵ Ϯ͕Ϯϰϭ ϴϭϭ͕ϴϯϯ Ϯ͕ϭϳϰ ϳϴϭ͕ϰϮϴ Ϯ͕Ϭϱϲ ϴϬϴ͕ϮϮϳ dŽƚĂůĂůůƵƐĞƌƐ ϰϱ͕ϮϴϬ ϰϮ͕ϲϮϲ͕ϯϭϱΨ ϰϱ͕ϰϵϬ ϰϮ͕ϭϭϯ͕ϱϭϳΨ ϰϱ͕ϰϮϭ ϯϵ͕ϵϯϳ͕ϰϵϱΨ ϰϱ͕ϮϮϬ ϯϴ͕ϭϮϯ͕ϮϬϳΨ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ^ŝŶŐůĞĨĂŵŝůLJ ϯϱ͕ϴϮϰ ϮϬ͕ϰϳϲ͕ϴϲϲΨ ϯϱ͕ϴϮϱ ϭϳ͕ϯϰϲ͕ϰϭϰΨ ϯϱ͕ϳϮϵ ϭϱ͕ϲϴϴ͕ϳϰϵΨ ϯϱ͕ϲϵϱ ϭϲ͕ϳϳϱ͕ϴϯϰΨ DƵůƚŝƉůĞĨĂŵŝůLJ Ϯ͕ϵϬϰ ϰ͕ϵϰϰ͕ϵϳϴ Ϯ͕ϴϵϵ ϰ͕ϰϰϵ͕ϮϬϰ Ϯ͕ϴϳϯ ϰ͕ϮϮϱ͕ϴϯϮ Ϯ͕ϴϲϵ ϰ͕ϯϰϵ͕ϲϬϭ ŽŵŵĞƌĐŝĂů ϯ͕ϭϭϭ ϲ͕ϭϭϳ͕ϰϵϯ ϯ͕ϭϯϭ ϱ͕ϳϱϬ͕ϲϳϮ ϯ͕ϬϵϮ ϰ͕ϵϭϯ͕ϵϰϮ ϯ͕Ϭϵϳ ϲ͕ϯϯϮ͕ϴϴϮ >ĂŶĚƐĐĂƉĞ ϭ͕ϭϱϵ ϰ͕ϲϵϰ͕ϳϬϰ ϭ͕ϭϮϭ ϯ͕ϳϴϵ͕ϱϮϳ ϭ͕ϭϮϵ ϯ͕ϮϬϯ͕ϵϬϳ ϭ͕ϭϯϬ ϯ͕Ϭϳϵ͕ϲϭϬ KƚŚĞƌ Ϯ͕Ϭϭϴ ϳϰϴ͕ϭϰϭ ϭ͕ϵϱϲ ϱϱϳ͕ϯϵϮ ϭ͕ϵϬϱ ϲϳϳ͕ϭϴϬ ϭ͕ϳϵϭ ϲϳϵ͕ϲϬϲ dŽƚĂůĂůůƵƐĞƌƐ ϰϱ͕Ϭϭϲ ϯϲ͕ϵϴϮ͕ϭϴϮΨ ϰϰ͕ϵϯϮ ϯϭ͕ϴϵϯ͕ϮϬϵΨ ϰϰ͕ϳϮϴ Ϯϴ͕ϳϬϵ͕ϲϭϬΨ ϰϰ͕ϱϴϮ ϯϭ͕Ϯϭϳ͕ϱϯϯΨ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ^ŝŶŐůĞĨĂŵŝůLJ ϯϱ͕ϬϭϮ ϭϴ͕ϱϴϯ͕ϳϬϴΨ ϯϰ͕ϵϭϯ ϭϴ͕ϳϰϭ͕ϳϳϯΨ DƵůƚŝƉůĞĨĂŵŝůLJ Ϯ͕ϴϮϰ ϰ͕ϱϵϭ͕ϮϵϬ Ϯ͕ϴϮϬ ϰ͕ϳϬϰ͕ϯϴϰ ŽŵŵĞƌĐŝĂů ϯ͕Ϭϴϱ ϲ͕ϱϲϲ͕ϯϰϰ ϯ͕ϬϴϮ ϲ͕ϴϬϬ͕ϯϭϬ >ĂŶĚƐĐĂƉĞ ϭ͕ϭϰϬ ϯ͕ϲϭϲ͕ϭϯϱ ϭ͕ϭϬϰ ϯ͕ϱϵϭ͕ϲϳϴ KƚŚĞƌ ϭ͕ϳϬϯ ϵϭϯ͕ϴϭϬ ϭ͕ϲϲϯ ϱϵϵ͕ϮϭϬ dŽƚĂůĂůůƵƐĞƌƐ ϰϯ͕ϳϲϰ ϯϰ͕Ϯϳϭ͕ϮϴϳΨ ϰϯ͕ϱϴϮ ϯϰ͕ϰϯϳ͕ϯϱϱΨ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐƌĞĐŽƌĚƐ ϮϬϭϵ ϮϬϭϴ ϮϬϭϳ ϮϬϭϲ ϮϬϭϱ ϮϬϭϰ ϮϬϭϯ ϮϬϮϮ ϮϬϮϭ ϮϬϮϬ ϱϲй ϭϯй ϭϲй ϭϯй Ϯй tĂƚĞƌ^ĞƌǀŝĐĞZĞǀĞŶƵĞďLJhƐĞƌdLJƉĞ &zϮϬϮϮ ^ŝŶŐůĞĨĂŵŝůLJ DƵůƚŝƉůĞĨĂŵŝůLJ ŽŵŵĞƌĐŝĂů >ĂŶĚƐĐĂƉĞ KƚŚĞƌ ϯϱ͕ϳϰϰ Ϯ͕ϵϬϱ ϯ͕ϭϱϭ ϭ͕ϭϴϰϮ͕Ϯϵϲ tĂƚĞƌhƚŝůŝƚLJ͗ǀĞƌĂŐĞηŽĨ ŽŶŶĞĐƚŝŽŶƐƉĞƌƵƐƚŽŵĞƌdLJƉĞ &zϮϬϮϮ ^ŝŶŐůĞĨĂŵŝůLJ DƵůƚŝƉůĞĨĂŵŝůLJ ŽŵŵĞƌĐŝĂů >ĂŶĚƐĐĂƉĞ KƚŚĞƌ 93   Packet Pg. 396 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ dŽƉdĞŶtĂƚĞƌƵƐƚŽŵĞƌƐ &ŝƐĐĂůzĞĂƌϮϬϮϮ ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽ ϭ͕ϮϮϳ͕ϱϴϯΨ ^ĂŶĞƌŶĂƌĚŝŶŽŽƵŶƚLJhŶŝĨŝĞĚ^ĐŚŽŽůŝƐƚƌŝĐƚ ϵϲϴ͕ϭϯϵ ĂůŝĨŽƌŶŝĂ^ƚĂƚĞhŶŝǀĞƌƐŝƚLJ ϰϵϰ͕ϴϴϵ ŽƵŶƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽ Ϯϴϭ͕Ϭϭϯ ,ŽƵƐŝŶŐƵƚŚŽƌŝƚLJŽĨƚŚĞŽƵŶƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽ Ϯϯϭ͕ϱϳϮ ŽƚƚĞǀĞƌĂŐĞƐ ϭϴϮ͕ϵϱϮ t͘ĞĂŶtĞŝĚŶĞƌ ϭϲϲ͕ϮϮϵ ZŝĂůƚŽ^ĐŚŽŽůŝƐƚƌŝĐƚ ϭϰϱ͕ϳϵϮ >ŝĚŽŽŶĚŽŵŝŶŝƵŵƐ ϭϯϰ͕Ϯϭϱ WDDĂŶĂŐĞŵĞŶƚŽŵƉĂŶLJ ϭϯϬ͕ϵϲϳ dŽƉdĞŶƵƐƚŽŵĞƌƐdŽƚĂů ϯ͕ϵϲϯ͕ϯϱϭΨ dŽƚĂůtĂƚĞƌZĞǀĞŶƵĞ ϰϮ͕ϲϮϲ͕ϯϭϱΨ  dŽƉdĞŶƵƐƚŽŵĞƌƐWĞƌĐĞŶƚŽĨdŽƚĂů ϵ͘ϯϬй ϮϬϮϮdŽƉϭϬƵƐƚŽŵĞƌƐ 94   Packet Pg. 397 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ ^ĞǁĞƌdƌĞĂƚŵĞŶƚZĂƚĞ,ŝƐƚŽƌLJ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ ϭͬϭͬϮϬϭϯ ϭͬϭͬϮϬϭϰ ϭϬͬϭͬϮϬϭϱ ϳͬϭͬϮϬϭϲ ϳͬϭͬϮϬϭϳ ϳͬϭͬϮϬϭϴ ϳͬϭͬϮϬϭϵ ϳͬϭͬϮϬϮϬ ϳͬϭͬϮϬϮϭ ϰͬϭͬϮϬϮϮΎ ZĞƐŝĚĞŶƚŝĂů;ŵŽŶƚŚůLJƉĞƌhͿ ZĞƐŝĚĞŶƚŝĂů ϭϴ͘ϱϬ ϭϴ͘ϱϬ ϮϬ͘ϲϱ ϮϮ͘ϯϴ Ϯϯ͘ϭϬ Ϯϯ͘ϭϬ Ϯϯ͘ϭϬ Ϯϯ͘ϭϬ Ϯϯ͘ϭϬ ϯϳ͘ϴϯ DƵůƚŝͲ&ĂŵŝůLJ;ϮƵŶŝƚƐͿ ϯϳ͘ϬϬ ϯϳ͘ϬϬ ϰϭ͘ϯϭ ϰϰ͘ϳϲ ϰϲ͘ϮϬ ǭ ϲϲ͘Ϭϱ ϲϲ͘Ϭϱ ϲϲ͘Ϭϱ ϳϱ͘ϲϲ DƵůƚŝͲĨĂŵŝůLJ;ϯƵŶŝƚƐͿ ϱϱ͘ϱϬ ϱϱ͘ϱϬ ϲϭ͘ϵϲ ϲϳ͘ϭϰ ϲϵ͘Ϯϵ ϵϵ͘Ϭϰ ϵϵ͘Ϭϰ ϵϵ͘Ϭϰ ϵϵ͘Ϭϰ ϭϭϯ͘ϰϵ ůůEŽŶͲZĞƐŝĚĞŶƚŝĂů;ŝŶĐůƵĚŝŶŐŵƵůƚŝͲĨĂŵŝůLJ;ϰŽƌ ŵŽƌĞƵŶŝƚƐͿĂŶĚŵŽďŝůĞŚŽŵĞƉĂƌŬƐͿ Ϯ͘ϰϬ Ϯ͘ϰϬ ϯ͘ϭϴ ϯ͘ϰϮ ϯ͘ϱϮ ϲ͘ϲϮ ϲ͘ϲϮ ϲ͘ϲϮ ϲ͘ϲϮ ϭϲ͘ϱϲ /ŶĚƵƐƚƌŝĂů ϭ͘ϬϬ ϭ͘ϬϬ ϭ͘ϲϳ ϭ͘ϳϴ ϭ͘ϴϯ ϰ͘ϵϯ ϰ͘ϵϯ ϰ͘ϵϯ ϰ͘ϵϯ ϭϲ͘ϱϲ ΎdŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶƌĂƚĞǁĂƐĐŽŵďŝŶĞĚǁŝƚŚƚŚĞ^ĞǁĞƌdƌĞĂƚŵĞŶƚƌĂƚĞƚŽďĞĐŽŵĞƚŚĞƐĞǁĞƌƌĂƚĞƚŚĂƚǁĂƐĞĨĨĞĐƚŝǀĞϬϰͬϬϭͬϮϮ͘ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐƌĞĐŽƌĚƐ 95   Packet Pg. 398 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ ^ĞǁĞƌdƌĞĂƚŵĞŶƚZĂƚĞ,ŝƐƚŽƌLJ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ ϭͬϭͬϮϬϭϯ ϭͬϭͬϮϬϭϰ ϭϬͬϭͬϮϬϭϱ ϳͬϭͬϮϬϭϲ ϳͬϭͬϮϬϭϳ ϳͬϭͬϮϬϭϴ ϳͬϭͬϮϬϭϵ ϳͬϭͬϮϬϮϬ ϳͬϭͬϮϬϮϭ ϰͬϭͬϮϬϮϮΎ ŽŵŵŽĚŝƚLJŚĂƌŐĞ;ƉĞƌ,&Ϳ͗ >Žǁ^ƚƌĞŶŐƚŚEŽŶͲZĞƐŝĚŝĞŶƚŝĂů >ĂƵŶĚƌŽŵĂƚƐ ϭ͘ϱϬ ϭ͘ϱϬ ϭ͘ϲϯ ϭ͘ϳϳ ϭ͘ϴϯ ϭ͘ϴϯ ϭ͘ϴϯ ϭ͘ϴϯ ϭ͘ϴϯ Ϯ͘ϭϱ ^ĐŚŽŽůƐ͕ĐŚƵƌĐŚĞƐ͕ŶƵƌƐĞƌLJƐĐŚŽŽůƐ ϭ͘ϭϬ ϭ͘ϭϬ ϭ͘ϭϵ ϭ͘Ϯϵ ϭ͘ϯϯ ϭ͘ϯϯ ϭ͘ϯϯ ϭ͘ϯϯ ϭ͘ϯϯ Ϯ͘ϭϱ DĞĚŝƵŵ^ƚƌĞŶŐƚŚEŽŶͲZĞƐŝĚŝĞŶƚŝĂů DƵůƚŝͲĨĂŵŝůLJ͕ŵŽďŝůĞŚŽŵĞƉĂƌŬƐ ϭ͘Ϯϱ ϭ͘Ϯϱ ϭ͘ϯϲ ϭ͘ϰϴ ϭ͘ϱϯ ϭ͘ϱϯ ϭ͘ϱϯ ϭ͘ϱϯ ϭ͘ϱϯ Ϯ͘ϳϭ ZĞƚĂŝů͕ĐŽŵŵĞƌĐŝĂů͕ůŝŐŚƚŝŶĚƵƐƚƌŝĂů Ϯ͘ϭϬ Ϯ͘ϭϬ Ϯ͘Ϯϴ Ϯ͘ϰϳ Ϯ͘ϱϱ Ϯ͘ϱϱ Ϯ͘ϱϱ Ϯ͘ϱϱ Ϯ͘ϱϱ Ϯ͘ϳϭ ƵƚŽƌĞƉĂŝƌ͕ĐĂƌǁĂƐŚ ϭ͘ϯϬ ϭ͘ϯϬ ϭ͘ϰϭ ϭ͘ϱϯ ϭ͘ϱϴ ϭ͘ϱϴ ϭ͘ϱϴ ϭ͘ϱϴ ϭ͘ϱϴ Ϯ͘ϳϭ KĨĨŝĐĞƐ͕ŵŽƚĞůƐ;ǁͬŽƌĞƐƚĂƵƌĂŶƚƐͿ ϭ͘ϱϬ ϭ͘ϱϬ ϭ͘ϲϯ ϭ͘ϳϳ ϭ͘ϴϯ ϭ͘ϴϯ ϭ͘ϴϯ ϭ͘ϴϯ ϭ͘ϴϯ Ϯ͘ϳϭ ,ŽƐƉŝƚĂůƐ͕ĐŽŶǀĂůĞƐĐĞŶƚŚŽŵĞƐ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϰϲ ϭ͘ϱϴ ϭ͘ϲϯ ϭ͘ϲϯ ϭ͘ϲϯ ϭ͘ϲϯ ϭ͘ϲϯ Ϯ͘ϳϭ ,ŝŐŚ^ƚƌĞŶŐƚŚEŽŶͲZĞƐŝĚŝĞŶƚŝĂů ZĞƐƚĂƵƌĂŶƚƐ͕ŚŽƚĞůƐ Ϯ͘ϳϬ Ϯ͘ϳϬ Ϯ͘ϵϯ ϯ͘ϭϴ ϯ͘Ϯϴ ϯ͘Ϯϴ ϯ͘Ϯϴ ϯ͘Ϯϴ ϯ͘Ϯϴ ϲ͘ϰϮ ŽŵĞĐƐƚŝĐ>ŝƋƵŝĚtĂƐƚĞ;ƉĞƌŐĂůůŽŶͿ Ϭ͘ϬϰϬϬ Ϭ͘ϬϰϬϬ Ϭ͘ϬϰϯϬ Ϭ͘ϬϰϳϬ Ϭ͘ϬϰϵϬ Ϭ͘ϬϰϵϬ Ϭ͘ϬϰϵϬ Ϭ͘ϬϰϵϬ Ϭ͘ϬϰϵϬ Ϭ͘Ϭϳϭϰ /ŶĚƵƐƚƌŝĂů͗ ŝƐĐŚĂƌŐĞ&ůŽǁ;ƉĞƌŵŝůůŝŽŶŐĂůůŽŶƐͿ ϵϬϬ͘ϬϬ ϵϬϬ͘ϬϬ ϵϳϳ͘ϬϬ ϭ͕ϬϲϬ͘ϬϬ ϭ͕Ϭϵϰ͘ϬϬ ϭ͕Ϭϵϰ͘ϬϬ ϭ͕Ϭϵϰ͘ϬϬ ϭ͕Ϭϵϰ͘ϬϬ ϭ͕Ϭϵϰ͘ϬϬ ϭ͕ϰϮϬ͘ϴϯ ŝŽůŽŐŝĐĂůKdžLJŐĞŶĚĞŵĂŶĚ;ƉĞƌϭ͕ϬϬϬůďƐͿ ϯϲϬ͘ϬϬ ϯϲϬ͘ϬϬ ϯϵϭ͘ϬϬ ϰϮϰ͘ϬϬ ϰϯϴ͘ϬϬ ϰϯϴ͘ϬϬ ϰϯϴ͘ϬϬ ϰϯϴ͘ϬϬ ϰϯϴ͘ϬϬ ϲϰϴ͘Ϯϴ ^ƵƐƉĞŶĚĞĚ^ŽůŝĚƐ;ƉĞƌϭ͕ϬϬϬůďƐͿ ϲϰϬ͘ϬϬ ϲϰϬ͘ϬϬ ϲϵϰ͘ϬϬ ϳϱϯ͘ϬϬ ϳϳϴ͘ϬϬ ϳϳϴ͘ϬϬ ϳϳϴ͘ϬϬ ϳϳϴ͘ϬϬ ϳϳϴ͘ϬϬ ϲϰϴ͘ϱϬ ΎdŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶƌĂƚĞǁĂƐĐŽŵďŝŶĞĚǁŝƚŚƚŚĞ^ĞǁĞƌdƌĞĂƚŵĞŶƚƌĂƚĞƚŽďĞĐŽŵĞƚŚĞƐĞǁĞƌƌĂƚĞƚŚĂƚǁĂƐĞĨĨĞĐƚŝǀĞϬϰͬϬϭͬϮϮ͘ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐƌĞĐŽƌĚƐ 96   Packet Pg. 399 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ ^ĞǁĞƌdƌĞĂƚŵĞŶƚŽŶŶĞĐƚŝŽŶƐĂŶĚZĞǀĞŶƵĞďLJhƐĞƌdLJƉĞ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ hƐĞƌdLJƉĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ^ĂŶĞƌŶĂƌĚŝŶŽZĞƐŝĚĞŶƚŝĂů ϯϯ͕ϮϯϬ Ψϭϰ͕ϯϱϵ͕ϰϭϱ ϯϮ͕ϯϲϱ ΨϭϬ͕ϭϲϱ͕ϳϲϱ ϯϭ͕ϴϮϴ ΨϭϬ͕ϭϵϭ͕ϰϴϮ ϯϯ͕Ϭϱϭ ΨϭϬ͕ϭϰϲ͕ϲϲϬ ^ĂŶĞƌŶĂƌĚŝŶŽEŽŶƌĞƐŝĚĞŶƚŝĂů ϱ͕ϱϲϲ ϳ͕Ϯϳϵ͕Ϯϭϱ ϱ͕ϰϯϲ ϴ͕ϮϵϮ͕ϴϳϰ ϱ͕ϯϰϬ ϴ͕ϰϲϯ͕ϱϱϰ ϱ͕ϱϯϭ ϴ͕ϲϰϱ͕ϬϯϮ ĂƐƚsĂůůĞLJZĞƐŝĚĞŶƚŝĂů ϭϴ͕ϲϯϲ ϱ͕Ϭϭϭ͕Ϯϭϱ ϭϴ͕ϳϭϬ ϰ͕ϳϵϳ͕ϴϯϯ ϭϴ͕ϰϳϳ ϰ͕ϳϳϴ͕ϭϱϮ ϭϴ͕ϰϳϳ ϰ͕ϳϳϴ͕ϭϱϮ ĂƐƚsĂůůĞLJEŽŶƌĞƐŝĚĞŶƚŝĂů ϭ͕ϭϬϲ ϯ͕ϴϬϱ͕ϱϱϴ ϭ͕Ϭϴϳ ϯ͕ϰϱϲ͕ϴϮϳ ϭ͕ϬϱϬ ϯ͕ϰϴϯ͕ϳϮϰ ϭ͕ϬϱϬ ϯ͕ϱϱϬ͕ϵϳϯ >ŽŵĂ>ŝŶĚĂZĞƐŝĚĞŶƚŝĂů ϯ͕Ϭϯϵ ϭ͕Ϯϭϵ͕Ϭϯϰ ϯ͕ϬϭϬ ϭ͕ϮϯϮ͕Ϭϰϴ Ϯ͕ϴϱϲ ϭ͕ϭϲϯ͕ϱϬϭ Ϯ͕ϳϵϵ ϭ͕ϭϳϭ͕ϳϬϲ >ŽŵĂ>ŝŶĚĂEŽŶƌĞƐŝĚĞŶƚŝĂů ϭϲϵ ϭ͕ϲϳϯ͕ϰϰϱ ϭϲϵ ϭ͕ϲϰϮ͕ϮϱϬ ϭϲϴ ϭ͕ϲϮϮ͕ϴϳϮ ϯϰϱ ϭ͕ϱϱϳ͕ϭϭϵ dŽƚĂůĂůůƵƐĞƌƐ ϲϭ͕ϳϰϲ Ψϯϯ͕ϯϰϳ͕ϴϴϮ ϲϬ͕ϳϳϳ ΨϮϵ͕ϱϴϳ͕ϱϵϲ ϱϵ͕ϳϭϵ ΨϮϵ͕ϳϬϯ͕Ϯϴϰ ϲϭ͕Ϯϱϯ ΨϮϵ͕ϴϰϵ͕ϲϰϯ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ^ĂŶĞƌŶĂƌĚŝŶŽZĞƐŝĚĞŶƚŝĂů ϯϮ͕ϵϰϱ ΨϭϬ͕ϭϯϱ͕ϭϯϮ ϯϮ͕ϵϲϬ Ψϵ͕ϳϱϲ͕ϱϵϮ ϯϮ͕ϴϴϵ Ψϴ͕ϳϰϲ͕ϲϭϳ ϯϮ͕ϴϳϰ Ψϴ͕Ϭϱϲ͕ϴϮϳ ^ĂŶĞƌŶĂƌĚŝŶŽEŽŶƌĞƐŝĚĞŶƚŝĂů ϱ͕ϱϮϲ ϴ͕ϴϯϰ͕ϲϰϭ ϱ͕ϰϳϭ ϴ͕ϬϭϬ͕ϮϰϬ ϱ͕ϯϳϳ ϳ͕ϭϮϱ͕Ϭϱϯ ϱ͕ϯϰϰ ϳ͕ϮϰϬ͕ϱϯϯ ĂƐƚsĂůůĞLJZĞƐŝĚĞŶƚŝĂů ϭϴ͕ϰϳϳ ϰ͕ϳϲϱ͕Ϯϭϴ ϭϴ͕ϰϳϳ ϰ͕ϲϮϮ͕ϵϰϰ ϭϴ͕ϰϳϳ ϰ͕ϬϬϴ͕Ϭϯϵ ϭϴ͕ϰϴϬ ϰ͕Ϭϵϯ͕ϲϮϱ ĂƐƚsĂůůĞLJEŽŶƌĞƐŝĚĞŶƚŝĂů ϭ͕ϬϱϬ ϯ͕ϱϳϵ͕ϯϰϴ ϭ͕ϬϱϬ ϯ͕Ϭϴϯ͕ϰϳϱ ϭ͕ϬϲϬ Ϯ͕ϴϮϱ͕ϵϳϭ ϭ͕Ϭϱϭ Ϯ͕ϱϳϭ͕ϴϭϯ >ŽŵĂ>ŝŶĚĂZĞƐŝĚĞŶƚŝĂů ϰ͕ϴϮϰ ϭ͕ϭϲϳ͕ϴϮϯ ϰ͕ϳϮϯ ϭ͕ϭϬϳ͕ϮϬϭ ϱ͕ϵϰϴ ϭ͕ϬϬϴ͕Ϭϳϭ ϱ͕ϬϰϬ ϵϵϳ͕ϮϰϮ >ŽŵĂ>ŝŶĚĂEŽŶƌĞƐŝĚĞŶƚŝĂů ϳϬϯ ϭ͕ϱϰϴ͕ϱϳϰ ϱϵϯ ϭ͕ϰϰϭ͕ϴϬϳ ϱϵϭ ϭ͕ϯϬϴ͕ϰϳϰ ϱϴϴ ϭ͕Ϯϵϰ͕ϲϭϮ dŽƚĂůĂůůƵƐĞƌƐ ϲϯ͕ϱϮϱ ΨϯϬ͕ϬϯϬ͕ϳϯϳ ϲϯ͕Ϯϳϰ ΨϮϴ͕ϬϮϮ͕Ϯϱϵ ϲϰ͕ϯϰϮ ΨϮϱ͕ϬϮϮ͕ϮϮϱ ϲϯ͕ϯϳϳ ΨϮϰ͕Ϯϱϰ͕ϲϱϭ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ^ĂŶĞƌŶĂƌĚŝŶŽZĞƐŝĚĞŶƚŝĂů ϯϮ͕ϱϯϳ Ψϴ͕ϭϭϭ͕ϲϯϰ ϯϮ͕ϱϲϯ Ψϳ͕ϵϮϮ͕ϵϯϲ ^ĂŶĞƌŶĂƌĚŝŶŽEŽŶƌĞƐŝĚĞŶƚŝĂů ϱ͕ϰϭϬ ϴ͕Ϭϯϯ͕ϬϳϮ ϱ͕ϰϰϳ ϴ͕ϯϯϮ͕Ϯϭϰ ĂƐƚsĂůůĞLJZĞƐŝĚĞŶƚŝĂů ϭϴ͕ϰϬϰ ϰ͕ϭϰϵ͕ϴϯϲ ϭϴ͕ϵϮϱ ϰ͕ϭϴϴ͕ϰϯϰ ĂƐƚsĂůůĞLJEŽŶƌĞƐŝĚĞŶƚŝĂů ϭ͕ϭϭϱ Ϯ͕ϳϮϱ͕Ϭϳϱ ϭ͕ϭϮϲ Ϯ͕ϰϯϰ͕ϭϭϴ >ŽŵĂ>ŝŶĚĂZĞƐŝĚĞŶƚŝĂů ϰ͕ϲϱϲ ϵϵϭ͕ϯϴϳ ϰ͕ϲϲϯ ϭ͕Ϭϲϯ͕ϭϮϰ >ŽŵĂ>ŝŶĚĂEŽŶƌĞƐŝĚĞŶƚŝĂů ϱϵϮ ϭ͕ϯϯϬ͕ϭϬϮ ϱϴϱ ϭ͕ϱϰϵ͕ϲϰϯ dŽƚĂůĂůůƵƐĞƌƐ ϲϮ͕ϳϭϰ ΨϮϱ͕ϯϰϭ͕ϭϬϲ ϲϯ͕ϯϬϵ ΨϮϱ͕ϰϵϬ͕ϰϲϵ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐƌĞĐŽƌĚƐ ϮϬϭϰ ϮϬϭϯ ϮϬϮϮ ϮϬϮϭ ϮϬϮϬ ϮϬϭϵ ϮϬϭϴ ϮϬϭϳ ϮϬϭϲ ϮϬϭϱ ϯϯ͕ϮϯϬ ϱ͕ϱϲϲ ϭϴ͕ϲϯϲ ϭ͕ϭϬϲ ϯ͕Ϭϯϵ ϭϲϵ ^ĞǁĞƌhƚŝůŝƚLJ͗ǀĞƌĂŐĞηŽĨŽŶŶĞĐƚŝŽŶƐƉĞƌ ƵƐƚŽŵĞƌdLJƉĞ&zϮϬϮϮ ^ĂŶĞƌŶĂƌĚŝŶŽZĞƐŝĚĞŶƚŝĂů ^ĂŶĞƌŶĂƌĚŝŶŽEŽŶƌĞƐŝĚĞŶƚŝĂů ĂƐƚsĂůůĞLJZĞƐŝĚĞŶƚŝĂů ĂƐƚsĂůůĞLJEŽŶƌĞƐŝĚĞŶƚŝĂů >ŽŵĂ>ŝŶĚĂZĞƐŝĚĞŶƚŝĂů >ŽŵĂ>ŝŶĚĂEŽŶƌĞƐŝĚĞŶƚŝĂů ϰϯй ϮϮй ϭϱй ϭϭй ϰй ϱй ^ĞǁĞƌhƚŝůŝƚLJZĞǀĞŶƵĞďLJhƐĞƌdLJƉĞ &zϮϬϮϮ ^ĂŶĞƌŶĂƌĚŝŶŽZĞƐŝĚĞŶƚŝĂů ^ĂŶĞƌŶĂƌĚŝŶŽEŽŶƌĞƐŝĚĞŶƚŝĂů ĂƐƚsĂůůĞLJZĞƐŝĚĞŶƚŝĂů ĂƐƚsĂůůĞLJEŽŶƌĞƐŝĚĞŶƚŝĂů >ŽŵĂ>ŝŶĚĂZĞƐŝĚĞŶƚŝĂů >ŽŵĂ>ŝŶĚĂEŽŶƌĞƐŝĚĞŶƚŝĂů 97   Packet Pg. 400 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ dŽƉdĞŶ^ĞǁĞƌdƌĞĂƚŵĞŶƚƵƐƚŽŵĞƌƐ &ŝƐĐĂůzĞĂƌϮϬϮϮ ŽƵŶƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽ ϰϯϭ͕ϴϱϭΨ ^ĂŶĞƌŶĂƌĚŝŶŽŽƵŶƚLJhŶŝĨŝĞĚ^ĐŚŽŽůŝƐƚƌŝĐƚ Ϯϰϱ͕ϴϰϴ ,ŽƵƐŝŶŐƵƚŚŽƌŝƚLJŽĨƚŚĞŽƵŶƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽ ϭϮϵ͕ϴϭϯ ^ĂŝŶƚĞƌŶĂƌĚŝŶĞ,ŽƐƉŝƚĂů ϭϭϵ͕ϲϭϭ WDDĂŶĂŐĞŵĞŶƚŽŵƉĂŶLJ ϭϭϳ͕ϰϳϰ ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽ ϭϭϭ͕Ϯϵϯ ƌŽĂĚƐƚŽŶĞ/ŶǀĞƐƚŽƌƐ>> ϵϭ͕ϵϯϴ >ŝĚŽŽŶĚŽŵŝŶŝƵŵƐ ϴϵ͕ϳϰϲ ^ĂŶĞƌŶĂƌĚŝŶŽŽŵŵƵŶŝƚLJ,ŽƐƉŝƚĂů ϴϮ͕ϲϬϵ t͘ĞĂŶtĞŝĚŶĞƌ ϳϲ͕ϰϭϴ dŽƉdĞŶƵƐƚŽŵĞƌƐdŽƚĂů ϭ͕ϰϵϲ͕ϲϬϭΨ dŽƚĂů^ĞǁĞƌZĞǀĞŶƵĞ ϯϯ͕ϯϰϳ͕ϴϴϮΨ dŽƉdĞŶƵƐƚŽŵĞƌƐWĞƌĐĞŶƚŽĨdŽƚĂů ϰ͘ϰϵй ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐƌĞĐŽƌĚƐ ϮϬϮϮdŽƉϭϬƵƐƚŽŵĞƌƐ 98   Packet Pg. 401 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ ^ĞǁĞƌŽůůĞĐƚŝŽŶZĂƚĞ,ŝƐƚŽƌLJ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ ϭϬͬϭͬϮϬϭϱ ϳͬϭͬϮϬϭϲ ϳͬϭͬϮϬϭϳ ϳͬϭͬϮϬϭϴ ϳͬϭͬϮϬϭϵ ϳͬϭͬϮϬϮϬ ϳͬϭͬϮϬϮϭ ϰͬϭͬϮϬϮϮΎ ZĞƐŝĚĞŶƚŝĂů;ŵŽŶƚŚůLJƉĞƌhͿ ϵ͘ϬϬ ϵ͘ϰϱ ϵ͘ϵϬ ϵ͘ϵϬ ϵ͘ϵϬ ϵ͘ϵϬ ϵ͘ϵϬ Eͬ DƵůƚŝͲ&ĂŵŝůLJ DƵůƚŝͲĨĂŵŝůLJ͕ϮƵŶŝƚƐ ϭϴ͘ϬϬ ϭϴ͘ϵϬ ϭϵ͘ϴϱ ϭϵ͘ϴϱ ϭϵ͘ϴϱ ϭϵ͘ϴϱ ϭϵ͘ϴϱ Eͬ DƵůƚŝͲĨĂŵŝůLJ͕ϯƵŶŝƚƐ Ϯϳ͘ϬϬ Ϯϴ͘ϯϱ Ϯϵ͘ϳϱ Ϯϵ͘ϳϱ Ϯϵ͘ϳϱ Ϯϵ͘ϳϱ Ϯϵ͘ϳϱ Eͬ DƵůƚŝͲĨĂŵŝůLJ͕ϰŽƌŵŽƌĞƵŶŝƚƐ͕EŽŶͲƌĞƐ͘ DŽŶƚŚůLJŚĂƌŐĞ Ϯ͘ϴϬ Ϯ͘ϵϱ ϯ͘ϭϬ ϯ͘ϭϬ ϯ͘ϭϬ ϯ͘ϭϬ ϯ͘ϭϬ Eͬ hƐĂŐĞŚĂƌŐĞ;ƉĞƌ,&Ϳ Ϭ͘ϳϵ Ϭ͘ϴϯ Ϭ͘ϴϳ Ϭ͘ϴϳ Ϭ͘ϴϳ Ϭ͘ϴϳ Ϭ͘ϴϳ Eͬ ΎdŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶƌĂƚĞǁĂƐĐŽŵďŝŶĞĚǁŝƚŚƚŚĞ^ĞǁĞƌdƌĞĂƚŵĞŶƚƌĂƚĞƚŽďĞĐŽŵĞƚŚĞƐĞǁĞƌƌĂƚĞƚŚĂƚǁĂƐĞĨĨĞĐƚŝǀĞϬϰͬϬϭͬϮϮ͘ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐƌĞĐŽƌĚƐ dŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶhƚŝůŝƚLJǁĂƐƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚĞtĂƚĞƌĞƉĂƌƚŵĞŶƚŽŶDĂLJϭ͕ϮϬϭϳƐŽĚĞƚĂŝůƐĨŽƌƉƌŝŽƌLJĞĂƌƐŝƐƵŶĂǀĂŝůĂďůĞ͘ 99   Packet Pg. 402 ŝƚLJŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ ^ĞǁĞƌŽůůĞĐƚŝŽŶ ŽŶŶĞĐƚŝŽŶƐĂŶĚZĞǀĞŶƵĞďLJhƐĞƌdLJƉĞ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ hƐĞƌdLJƉĞ ŽŶŶĞĐƚŝŽŶƐ ŽŶƐƵŵƉƚŝŽŶ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ŽŶƐƵŵƉƚŝŽŶ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ŽŶƐƵŵƉƚŝŽŶ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ŽŶƐƵŵƉƚŝŽŶ ZĞǀĞŶƵĞ ZĞƐŝĚĞŶƚŝĂůͲ^ŝŶŐůĞ&ĂŵŝůLJ Ϯϳ͕ϳϰϴ Ϭ Ψϯ͕Ϭϲϭ͕ϱϭϯ ϯϮ͕ϰϭϴ Ϭ Ψϯ͕ϵϵϳ͕ϱϭϯ ϯϭ͕ϴϴϵ Ψϰ͕Ϭϱϰ͕ϬϮϬ ϯϯ͕ϭϮϳ Ψϯ͕ϵϮϳ͕ϳϴϰ ZĞƐŝĚĞŶƚŝĂůͲDƵůƚŝ&ĂŵŝůLJ ϭ͕ϯϰϱ Ϭ ϯϱϲ͕Ϭϱϭ ϭ͕ϱϳϲ Ϭ ϰϭϴ͕ϱϰϱ ϭ͕ϱϱϱ ϰϭϮ͕Ϭϵϱ ϭ͕ϲϬϲ ϰϮϰ͕ϲϲϱ ZĞƐŝĚĞŶƚŝĂůͲDƵůƚŝ&ĂŵŝůLJϰhŶŝƚƐн ϭϴ ϳϴ͕ϰϵϰ ϲϴ͕ϵϳϱ ϭϵ ϴϬ͕ϰϬϬ ϳϬ͕ϲϰϳ ϭϴ ϲϯ͕ϱϮϵ ϱϱ͕ϵϮϭ ϭϳ ϱϬ͕ϯϯϭ ϰϰ͕ϰϮϬ Žŵŵͬ>ĂŶĚͬ>ƚ͘/ŶĚƵƐƚƌŝĂůͬEŽŶͲZĞƐ͘Ϯ͕ϲϳϬ Ϯ͕ϱϵϰ͕ϲϰϬ Ϯ͕ϯϭϬ͕ϵϴϲ ϯ͕ϭϯϴ ϯ͕Ϭϱϭ͕ϭϳϳ Ϯ͕ϳϮϲ͕ϭϵϴ ϯ͕Ϭϲϵ Ϯ͕ϴϵϯ͕Ϭϭϴ Ϯ͕ϱϴϴ͕ϵϭϮ ϯ͕ϭϴϬ Ϯ͕ϵϬϰ͕Ϭϱϰ Ϯ͕ϲϬϭ͕ϴϬϰ ĚƵĐĂƚŝŽŶͲWƵďůŝĐ ϰϯ ϭϮϳ͕Ϯϳϵ ϭϭϬ͕ϱϴϴ ϰϵ ϭϮϰ͕Ϭϰϳ ϭϬϵ͕ϮϬϱ ϯϳ ϱϰ͕ϮϬϳ ϰϴ͕ϬϴϮ Ϯϳ Ϯϰ͕Ϯϵϯ Ϯϭ͕ϳϬϬ ĚƵĐĂƚŝŽŶͲWƌŝǀĂƚĞ ϭϮϰ ϱϴ͕ϵϯϮ ϱϱ͕ϴϱϵ ϭϰϵ ϳϮ͕ϭϰϭ ϲϴ͕Ϭϴϲ ϭϱϬ ϲϯ͕ϳϭϱ ϲϬ͕ϵϰϭ ϭϱϮ ϲϰ͕ϲϰϯ ϲϭ͕ϴϱϴ ,ŽƐƉŝƚĂůͬŽŶǀĂůĞƐĐĞŶƚ,ŽŵĞƐ Ϯϵ ϭϲϰ͕ϴϯϲ ϭϰϰ͕ϰϲϮ ϯϱ ϭϵϳ͕ϯϲϬ ϭϳϮ͕ϳϳϭ ϯϱ ϭϵϳ͕ϳϴϳ ϭϳϯ͕ϯϲϳ ϯϱ ϭϵϬ͕ϭϵϭ ϭϲϲ͕ϳϲϴ KĨĨŝĐĞͬDŽƚĞůͲEŽZĞƐƚĂƵƌĂŶƚϴϱ ϳϲ͕ϳϲϴ ϱϳ͕ϴϬϬ ϵϯ ϳϴ͕ϯϯϴ ϱϵ͕ϯϬϳ ϵϮ ϳϵ͕ϯϮϭ ϲϭ͕ϬϮϳ ϵϰ ϴϴ͕ϲϯϮ ϲϵ͕ϮϴϬ ZĞƐƚĂƵƌĂŶƚͬ,ŽƚĞůǁͬZĞƐƚĂƵƌĂŶƚ ϱϭ ϰϯ͕ϱϴϳ ϯϵ͕ϲϯϮ ϱϭ ϯϲ͕ϭϴϭ ϯϯ͕ϮϯϮ ϱϮ ϯϴ͕ϳϲϮ ϯϱ͕ϰϴϬ ϰϳ ϰϭ͕ϱϴϯ ϯϳ͕ϳϱϬ ƵƚŽZĞƉĂŝƌͬĂƌtĂƐŚ ϭϵϳ ϳϴ͕Ϯϵϯ ϳϱ͕ϯϵϬ ϮϮϲ ϴϭ͕ϵϰϱ ϳϴ͕ϵϳϭ ϮϮϭ ϳϱ͕ϬϮϳ ϳϯ͕ϰϴϳ ϮϮϵ ϳϲ͕ϱϴϳ ϳϰ͕ϴϱϰ >ĂƵŶĚƌŽŵĂƚ ϰ Ϯϵ͕ϮϯϮ Ϯϱ͕ϱϴϳ ϱ Ϯϴ͕ϯϰϵ Ϯϰ͕ϴϰϯ ϱ Ϯϰ͕ϴϮϭ Ϯϭ͕ϳϳϭ ϱ Ϯϲ͕ϲϯϵ Ϯϯ͕ϯϲϮ ^/ƌƌŝŐĂƚŝŽŶ Ϭ Ϭ Ϭ Ϭ Ϭ Ϭ Ϯϭ Ϯϱϱ͕ϰϬϬ ϳϭ͕ϱϳϭ ϰϯ ϰϮϯ͕ϲϴϴ ϭϭϱ͕ϵϬϱ dŽƚĂůƐ/sϰϵ ϲϮ͕ϯϰϬ Ϭ ϰϴ ϲϱ͕ϱϱϵ Ϭ ϰϴ ϱϲ͕ϬϳϮ Ϭ ϱϬ ϱϰ͕ϯϴϳ Ϭ dŽƚĂůĂůůƵƐĞƌƐ ϯϮ͕ϯϲϯ ϯ͕ϯϭϰ͕ϰϬϭ ϲ͕ϯϬϲ͕ϴϰϯΨ ϯϳ͕ϴϬϲ ϯ͕ϴϭϱ͕ϰϵϳ ϳ͕ϳϱϵ͕ϯϭϴΨ ϯϳ͕ϭϵϮ ϯ͕ϴϬϭ͕ϲϱϵ ϳ͕ϲϱϲ͕ϲϳϱΨ ϯϴ͕ϲϭϯ ϯ͕ϵϰϱ͕ϬϮϴ ϳ͕ϱϳϬ͕ϭϱϬΨ ŽŶŶĞĐƚŝŽŶƐ ŽŶƐƵŵƉƚŝŽŶ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ŽŶƐƵŵƉƚŝŽŶ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ŽŶƐƵŵƉƚŝŽŶ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ŽŶƐƵŵƉƚŝŽŶ ZĞǀĞŶƵĞ ZĞƐŝĚĞŶƚŝĂůͲ^ŝŶŐůĞ&ĂŵŝůLJ ϯϮ͕ϵϯϵ Ψϯ͕ϵϭϲ͕ϵϰϲ ϯϮ͕ϴϵϵ Ψϯ͕ϳϭϵ͕ϳϵϴ ZĞƐŝĚĞŶƚŝĂůͲDƵůƚŝ&ĂŵŝůLJ ϭ͕ϲϬϳ ϰϮϰ͕ϬϮϰ ϭ͕ϲϬϵ ϰϬϱ͕ϬϬϳ ZĞƐŝĚĞŶƚŝĂůͲDƵůƚŝ&ĂŵŝůLJϰhŶŝƚƐн ϭϲ ϱϭ͕ϬϵϮ ϰϰ͕ϵϰϱ ϭϱ ϰϱ͕ϭϰϲ ϰϭ͕ϯϱϭ Žŵŵͬ>ĂŶĚͬ>ƚ͘/ŶĚƵƐƚƌŝĂůͬEŽŶͲZĞƐ͘ ϯ͕ϭϵϴ Ϯ͕ϵϵϳ͕ϰϮϮ Ϯ͕ϲϲϴ͕ϰϵϳ ϯ͕ϮϬϰ Ϯ͕ϲϮϲ͕ϲϰϱ Ϯ͕ϰϲϳ͕ϰϳϬ ĚƵĐĂƚŝŽŶͲWƵďůŝĐ Ϯϳ Ϯϵ͕ϰϳϴ Ϯϲ͕ϭϭϴ Ϯϳ Ϯϵ͕ϱϴϲ Ϯϳ͕ϰϮϬ ĚƵĐĂƚŝŽŶͲWƌŝǀĂƚĞ ϭϱϬ ϳϮ͕ϵϯϲ ϲϳ͕ϵϴϱ ϭϱϬ ϲϭ͕ϯϴϭ ϲϭ͕ϳϳϵ ,ŽƐƉŝƚĂůͬŽŶǀĂůĞƐĐĞŶƚ,ŽŵĞƐ ϯϱ ϭϵϰ͕ϱϲϬ ϭϳϬ͕Ϭϲϯ ϯϱ ϭϳϱ͕Ϯϰϭ ϭϲϭ͕ϭϴϮ KĨĨŝĐĞͬDŽƚĞůͲEŽZĞƐƚĂƵƌĂŶƚ ϵϰ ϴϱ͕ϯϵϳ ϲϲ͕Ϭϭϱ ϵϲ ϳϭ͕ϬϵϮ ϱϴ͕ϱϴϳ ZĞƐƚĂƵƌĂŶƚͬ,ŽƚĞůǁͬZĞƐƚĂƵƌĂŶƚ ϰϭ ϯϵ͕ϵϬϵ ϯϱ͕ϵϲϯ ϯϳ ϯϰ͕ϳϴϴ ϯϮ͕ϱϬϵ ƵƚŽZĞƉĂŝƌͬĂƌtĂƐŚ Ϯϯϭ ϵϯ͕ϰϳϰ ϴϵ͕ϱϲϱ ϮϮϵ ϳϯ͕ϰϯϲ ϳϱ͕ϰϮϭ >ĂƵŶĚƌŽŵĂƚ ϱ Ϯϲ͕ϰϲϰ Ϯϯ͕ϭϲϬ ϱ Ϯϰ͕Ϭϵϭ Ϯϭ͕ϴϮϰ ^/ƌƌŝŐĂƚŝŽŶ ϰϱ ϱϰϬ͕ϰϰϰ ϭϰϱ͕ϳϯϳ ϰϲ ϱϬϯ͕ϳϴϬ ϭϱϴ͕ϴϯϰ dŽƚĂůƐ/s ϰϵ ϱϳ͕Ϭϱϳ ϱϭ ϱϰ͕ϴϳϰ dŽƚĂůĂůůƵƐĞƌƐ ϯϴ͕ϰϯϴ ϰ͕ϭϴϴ͕Ϯϯϯ ϳ͕ϲϳϵ͕ϬϮϬΨ ϯϴ͕ϰϬϮ ϯ͕ϳϬϬ͕ϬϲϬ ϳ͕Ϯϯϭ͕ϭϴϯΨ Ϭ Ϭ ΨϬ Ϭ ΨϬ ŽŶŶĞĐƚŝŽŶƐ ŽŶƐƵŵƉƚŝŽŶ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ŽŶƐƵŵƉƚŝŽŶ ZĞǀĞŶƵĞ ZĞƐŝĚĞŶƚŝĂůͲ^ŝŶŐůĞ&ĂŵŝůLJ ZĞƐŝĚĞŶƚŝĂůͲDƵůƚŝ&ĂŵŝůLJ ZĞƐŝĚĞŶƚŝĂůͲDƵůƚŝ&ĂŵŝůLJϰhŶŝƚƐн Žŵŵͬ>ĂŶĚͬ>ƚ͘/ŶĚƵƐƚƌŝĂůͬEŽŶͲZĞƐ͘ ĚƵĐĂƚŝŽŶͲWƵďůŝĐ ĚƵĐĂƚŝŽŶͲWƌŝǀĂƚĞ ,ŽƐƉŝƚĂůͬŽŶǀĂůĞƐĐĞŶƚ,ŽŵĞƐ KĨĨŝĐĞͬDŽƚĞůͲEŽZĞƐƚĂƵƌĂŶƚ ZĞƐƚĂƵƌĂŶƚͬ,ŽƚĞůǁͬZĞƐƚĂƵƌĂŶƚ ƵƚŽZĞƉĂŝƌͬĂƌtĂƐŚ >ĂƵŶĚƌŽŵĂƚ ^/ƌƌŝŐĂƚŝŽŶ dŽƚĂůƐ/s dŽƚĂůĂůůƵƐĞƌƐ Ϭ Ϭ ΨϬ Ϭ ΨϬ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐƌĞĐŽƌĚƐ ϮϬϭϰ ϮϬϭϯ ΎdŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶhƚŝůŝƚLJǁĂƐƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚĞtĂƚĞƌĞƉĂƌƚŵĞŶƚŽŶDĂLJϭ͕ϮϬϭϳƐŽƉƌŝŽƌLJĞĂƌĚĂƚĂŝƐƵŶĂǀĂŝůĂďůĞ͘ĂƚĂƉƌŽǀŝĚĞĚĨŽƌϮϬϭϳƌĞƉƌĞƐĞŶƚƐƚŚĞĞŶƚŝƌĞ LJĞĂƌ͘ ϮϬϮϮ ϮϬϮϭ ϮϬϮϬ ϮϬϭϵ ϮϬϭϴ ϮϬϭϳ ϮϬϭϲ ϮϬϭϱ ϴϲй ϰй Ϭй ϴй Ϭй ϭй Ϭй Ϭй Ϭй ϭй Ϭй Ϭй Ϭй ^ĞǁĞƌŽůůĞĐƚŝŽŶŽŶŶĞĐƚŝŽŶƐďLJhƐĞƌdLJƉĞϮϬϮϮ ZĞƐŝĚĞŶƚŝĂůͲ^ŝŶŐůĞ&ĂŵŝůLJ ZĞƐŝĚĞŶƚŝĂůͲDƵůƚŝ&ĂŵŝůLJ ZĞƐŝĚĞŶƚŝĂůͲDƵůƚŝ&ĂŵŝůLJϰhŶŝƚƐн Žŵŵͬ>ĂŶĚͬ>ƚ͘/ŶĚƵƐƚƌŝĂůͬEŽŶͲZĞƐ͘ ĚƵĐĂƚŝŽŶͲWƵďůŝĐ ĚƵĐĂƚŝŽŶͲWƌŝǀĂƚĞ ,ŽƐƉŝƚĂůͬŽŶǀĂůĞƐĐĞŶƚ,ŽŵĞƐ KĨĨŝĐĞͬDŽƚĞůͲEŽZĞƐƚĂƵƌĂŶƚ ZĞƐƚĂƵƌĂŶƚͬ,ŽƚĞůǁͬZĞƐƚĂƵƌĂŶƚ ƵƚŽZĞƉĂŝƌͬĂƌtĂƐŚ >ĂƵŶĚƌŽŵĂƚ ^/ƌƌŝŐĂƚŝŽŶ dŽƚĂůƐ/s 100   Packet Pg. 403 City of San Bernardino Municipal Water Department Top Ten Sewer Collection Customers Fiscal Year 2022 San Bernardino County Unified School District 120,737$ County of San Bernardino 116,369 Saint Bernardine Hospital 49,388 PAMA Management Company 48,844 Housing Authority of the County of San Bernardino 45,278 City of San Bernardino 39,475 Lido Condominiums 38,257 Broadstone Investors LLC 36,685 San Bernardino Community Hospital 32,767 W. Dean Weidner 32,073 Top Ten Customers Total 559,873$ Total Sewer Collections Revenue* 6,306,843$ Top Ten Customers Percent of Total 8.88% Source: Department's records 2022 Top 10 Customers 101   Packet Pg. 404 7+,63$*(,17(17,21$//</()7%/$1. 102   Packet Pg. 405 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT JUNE 30, 2022 SINGLE AUDIT REPORT   Packet Pg. 406  &,7<2)6$1%(51$5',12 081,&,3$/:$7(5'(3$570(17  6,1*/($8',75(3257  -81(   Packet Pg. 407 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT SINGLE AUDIT REPORT JUNE 30, 2022 TABLE OF CONTENTS Page Number Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ...................................................................... 1 Independent Auditors’ Report on Compliance for Each Major Program and on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ........................................................................................ 3 Schedule of Expenditures of Federal Awards for the Fiscal Year Ended June 30, 2022 ........................................................................................................ 6 Notes to the Schedule of Expenditures of Federal Awards .................................................................... 7 Schedule of Findings and Questioned Costs for the Fiscal Year Ended June 30, 2022 ........................................................................................................ 8 Summary Schedule of Prior Year Findings and Questioned Costs for the Fiscal Year Ended June 30, 2021 ...................................................................................................... 10   Packet Pg. 408 203 N. Brea Blvd., Suite 203 Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Water Board City of San Bernardino Municipal Water Department San Bernardino, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund of the City of San Bernardino Municipal Water Department (the “Department”), a component unit of the City of San Bernardino, California, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Department’s basic financial statements, and have issued our report thereon dated January 17, 2023. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Department’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Department’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Department’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Department’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.   Packet Pg. 409 To the Water Board City of San Bernardino Municipal Water Department San Bernardino, California Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Department’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Department’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Brea, California January 17, 2023 2   Packet Pg. 410 203 N. Brea Blvd., Suite 203 Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE AND REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE To the Water Board City of San Bernardino Municipal Water Department San Bernardino, California Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of San Bernardino Municipal Water Department (the “Department”), a component unit of the City of San Bernardino, California (the “City”)’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the Department’s major federal programs for the year ended June 30, 2022. The Department’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. In our opinion, the Department, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022. Basis for Opinion We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the Department and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our audit does not provide a legal determination of the Department’s compliance with the compliance requirements referred to above. Emphasis of Matter As discussed in Note 1 to the Schedule of Expenditures of Federal Awards (the “Schedule”), the Schedule presents only the federal awards administered by the Department and does not purport to, and does not, present fairly the total federal expenditures of the City as a whole as of June 30, 2022, or nor does this report on compliance extend to those federal award programs not administered by the Department.   Packet Pg. 411 To the Water Board City of San Bernardino Municipal Water Department San Bernardino, California Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the Department’s government programs. Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above, whether due to fraud or error, and express an opinion on the Department’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Department’s compliance with the requirements of the government program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and Uniform Guidance, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Department’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of the Department’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the Department’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. 4   Packet Pg. 412 To the Water Board City of San Bernardino Municipal Water Department San Bernardino, California Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be a material weakness, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that have not been identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of each major fund of the Department, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Department’s basic financial statements. We issued our report thereon dated January 17, 2023, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Brea, California January 17, 2023 5   Packet Pg. 413 CITY OF SAN BERNARDINO MUNICIPAL WATER DISTRICT SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Federal Assistance Program Federal Grantor/Pass-Through Grantor/Program Title Listing Number Expenditures Environmental Protection Agency Consent Decree *66.000 Operations and maintenance: Newmark 823,010$ Muscoy 1,111,531 Site wide monitoring 115,866 Project management 136,440 Subtotal - Consent Decree 2,186,847 Direct Award: Superfund State, Political Subdivision, and Indian Tribe Site-Specific Cooperative Agreements 66.802 65,092 Total Environmental Protection Agency 2,251,939 Total Federal Expenditures 2,251,939$ * Major Program Note a: Refer to Note 1 to the schedule of expenditures of federal awards for a description of significant accounting policies used in preparing this schedule. Note b: There was no federal awards expended in the form of noncash assistance and insurance in effect during the year. Note c: Total amount provided to subrecipients during the year was $0. 6   Packet Pg. 414 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Note 1: Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal Awards a. Scope of Presentation The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the San Bernardino Municipal Water Department (the "Department"), a component unit of the City of San Bernardino, California (the “City”), under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Department, it is not intended to and does not present the financial position, changes in net position or cash flows of the Department, nor does it present all federal programs of the City of San Bernardino as a whole. b. Basis of Accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. Under the accrual basis of accounting, expenditures are recognized when incurred. Expenditures reported include any property or equipment acquisitions incurred under the federal program. The Department did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance. Note 2: Background of the Consent Decree In 1996, the City filed a complaint against the United States of America, Department of the Army (Army) to recover damages, response costs and other available remedies relating to contamination alleged to have originated at a World War II Army installation known as Camp Ono. In March 2005, the United States Department Court, Central Department, entered judgment, in the form of a consent decree (Consent Decree), in the matter of City of San Bernardino v. United States of America. The consent decree settles the City’s and the State’s claims arising from the groundwater contamination allegedly caused by the Army. The Consent Decree contains a number of provisions obligating the City (through the Municipal Water Department) to operate and maintain the Newmark Groundwater Superfund site (Site). The Site consists of two operable units, the Newmark Operable Unit and the Muscoy Operable Unit. The Newmark Operable Unit was declared operational and functional in 1998. The Consent Decree provided for a payment of $69 million from the Army to the City for performance of the work outlined in the consent decree. Upon entry of the Consent Decree, the City, through the Department, received title to all facilities constructed by the United States Environmental Protection Agency (EPA) for the Site and agreed to operate and maintain the groundwater extraction and treatment system for a period of 50 years. The $69 million payment consisted of $59 million for operation and maintenance and $10 million for the construction of certain capital facilities that would be required in the future. The funds are subject to strict limitations, contained in the Consent Decree, as to how they may be spent. Pursuant to the Consent Decree, $10 million, including interest earned, has been set aside to be used only for (i) funding construction of treatment and directly related transmission systems that expanded the Department’s capacity to deliver potable water, and (ii) funding work performed by the Department to complete construction of the Muscoy Operable Unit extraction system. These “capital facility” funds may not be used for costs incurred to operate, maintain, repair or retrofit components of the Site extraction or treatment systems constructed by EPA. In September 2007, the Muscoy Operable Unit was declared operational and functional. 7   Packet Pg. 415 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 SECTION I - SUMMARY OF AUDITORS' RESULTS Financial Statements Type of auditors' report issued: Unmodified Opinion Internal control over financial reporting:  Significant deficiencies identified? yes X none reported  Material weaknesses identified? yes X no Noncompliance material to financial statements noted? yes X no Federal Awards Internal control over major programs:  Significant deficiencies identified? yes X none reported  Material weaknesses identified? yes X no Type of auditors' report issued on compliance for major programs: Unmodified Opinion Any audit findings disclosed that are required to be reported in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)? yes X no Identification of major programs: Assistance Listing Number(s) Name of Federal Program or Cluster 66.000 Consent Decree Dollar threshold used to distinguish between type A and type B program $750,000 Auditee qualified as low risk auditee? X yes no 8   Packet Pg. 416 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30, 2022 SECTION II - FINANCIAL STATEMENT FINDINGS No matters were reported. SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. 9   Packet Pg. 417 6RXWK³(´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“Trusted, Quality Service since 1905” 6800$5<6&+('8/(2)35,25<($5),1',1*6$1'48(67,21('&2676 )257+(),6&$/<($5(1'('-81(     1RPDWWHUVZHUHUHSRUWHG 10   Packet Pg. 418 203 N. Brea Blvd., Suite203 Brea,CA92821Lance, Soll & Lunghard, LLP Phone: 714.672.0022 January 17, 2023 To the Water Board City of San Bernardino Municipal Water Department San Bernardino, California We have audited the financial statements of each major fund the City of San Bernardino Municipal Water Department (the “Department”), a component unit of the City of San Bernardino, California, for the year ended June 30, 2022. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated May 16, 2022. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Matters Qualitative Aspects of Significant Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Department are described in Note 1 to the financial statements. As described in Note 1 to the financial statements, the District changed accounting policies related to lease accounting by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 87, Leases, in fiscal year ending June 30, 2022. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in the basic financial statements. We noted no transactions entered into by the Department during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the Department’s financial statements were: Management’s estimates of its net pension liability, net other post-employment benefits liability/(asset), and self-insurance liability are based on actuarial valuation specialist assumptions. We evaluated the key factors and assumptions used to develop the net pension liability, net other post-employment benefits liability, and self-insurance liability to determine that they are reasonable in relation to the financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure affecting the financial statements was: The disclosure of the Consent Decree in Note 13 to the financial statements identifies the provisions of the settlement regarding a complaint filed by the City of San Bernardino against the Department of the Army to recover damages, response costs, and other available remedies relating to contamination alleged to have originated at a WWII army installation. The financial statement disclosures are neutral, consistent, and clear.   Packet Pg. 419 To the Water Board City of San Bernardino Municipal Water Department San Bernardino, California Significant or Unusual Transactions Management is responsible for the policies and practices used to account for significant or unusual transactions. No significant unusual transactions have occurred during fiscal year 2021-2022. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated January 17, 2023. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the Department’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the significant events or transactions that occurred during the year, business conditions affecting the Department and business plans and strategies that may affect the risks of material misstatements, the application of accounting principles and auditing standards, with management each year prior to retention as the Department’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.   Packet Pg. 420 To the Water Board City of San Bernardino Municipal Water Department San Bernardino, California Other Matters We applied certain limited procedures to management’s discussion and analysis, the schedule of proportionate share of the net pension liability, the schedule of changes in net OPEB liability/(asset) and related ratios, the schedules of plan contributions, and the schedule of OPEB plan investment returns which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were not engaged to report on the introductory and statistical section, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. The following new Governmental Accounting Standards Board (GASB) pronouncements were effective for fiscal year 2021-2022 audit: GASB Statement No. 87, Leases. GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans. The following GASB pronouncements are effective in the following fiscal years’ audits and should be reviewed for proper implementation by management: Fiscal year 2023 GASB Statement No. 91, Conduit Debt Obligations. GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangement. GASB Statement No. 96, Subscription-Based Information Technology Arrangements. Fiscal year 2024 GASB Statement No. 99, Omnibus 2022. GASB Statement No. 100, Accounting Changes and Error Corrections. Fiscal year 2025 GASB Statement No. 101, Compensated Absences.   Packet Pg. 421 To the Water Board City of San Bernardino Municipal Water Department San Bernardino, California Restriction on Use This information is intended solely for the use of the Water Board and management of City of San Bernardino Municipal Water Department and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Brea, California   Packet Pg. 422 203 N. Brea Blvd., Suite203 Brea,CA92821Lance, Soll & Lunghard, LLP Phone: 714.672.0022 INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Water Board City of San Bernardino Municipal Water Department San Bernardino, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund of the City of San Bernardino Municipal Water Department (the “Department”), a component unit of the City of San Bernardino, California, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Department’s basic financial statements, and have issued our report thereon dated January 17, 2023. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Department’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Department’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Department’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Department’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.   Packet Pg. 423 To the Water Board City of San Bernardino Municipal Water Department San Bernardino, California Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Department’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Department’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Brea, California January 17, 2023   Packet Pg. 424 San Bernardino Municipal Water Dept. Fiscal Year 2021/22 Financial Audit   Packet Pg. 425 www.lslcpas.com Overview of the Audit •LSL has been engaged by San Bernardino Municipal Water Department (SBMWD) to perform a financial audit over the basic financial statements. •Conducted over two weeks –Interim audit was conducted week of May 16 th –Final audit was conducted week of October 31 st •Goal is to render an “opinion” on whether the amounts reported in the financial statements are reliable in all material respects.   Packet Pg. 426 www.lslcpas.com Overview of the Audit •What the Audit is Not: – Primarily a search for fraud or misappropriation of assets. • Although we are required to be always be cognizant of and consider the possibility such things, they are not our primary goal. We are required to report on them if they are identified or brought to our attention during our audit. – An evaluation of the operational results of an organization. • If we believe there is significant risk that the organization will fail financially within 12 months after reporting date, we will report on it. However, making judgment calls on normal year-over-year operating results (e.g., doing better or worse) is not within the scope of a financial audit.   Packet Pg. 427 www.lslcpas.com Audit Report •Unmodified Opinion: –Opinion was rendered on January 17, 2023 –The financial statements can be relied upon and are materially correct as of June 30, 2022 •Basis for Opinion: –Generally accepted auditing standards –Government Auditing Standards   Packet Pg. 428 www.lslcpas.com Audit Report •Emphasis of Matter: – Department implemented GASB Statement No. 87,Leases,which changed accounting principles for lease activities. •Responsibilities of Management: – Preparation and presentation of financial statements – Design and implementation of internal controls – Consideration of going concern (will SBMWD be financially viable for the next 12 months?)   Packet Pg. 429 www.lslcpas.com Audit Report •Responsibilities of Auditor: – Obtain reasonable, not absolute, assurance that the financial statements are free from material misstatement due to fraud or error – Exercise professional judgment and maintain professional skepticism – Identify risks of material misstatement and develop audit procedures to respond to the risks – Obtain and understanding of internal control in order to design audit procedures. – Evaluate appropriateness of accounting policies and estimates – Evaluate SBMWD for going concern   Packet Pg. 430 www.lslcpas.com Audit Report Other Reporting Requirements •Required Supplementary Information: – Perform limited procedures to required supplementary information including inquiries, comparisons to basic financial statements, reviewing for consistency with prior years, and other expectations. •Management’s Discussion and Analysis •Pension and other post-employment benefits (OPEB) schedules – Provided to give explanations for changes in operations year-over-year and to provide historical context for pension and OPEB obligations.   Packet Pg. 431 www.lslcpas.com Audit Report Other Reporting Requirements (continued) •Other Information – Introductory and Statistical sections are read for consistency with basic financial information – Provide general and historical (10 year) information about the government, as well as other information.   Packet Pg. 432 www.lslcpas.com Report on Internal Control and Compliance •This report is required by Government Auditing Standards for the purpose of reporting significant deficiencies or material weaknesses in internal controls or material noncompliance with laws, regulations, grant agreements, bond covenants, contracts, etc. •No findings were reported for FY2021/22.   Packet Pg. 433 www.lslcpas.com Other Required Communication •Significant Accounting Practices –Implementation of GASB 87 –Management’s estimates of net pension liability and net OPEB liabilities •Significant or Unusual Transactions –None to report •Difficulties Performing Audit, Misstatements, or Disagreements with Management –None to report   Packet Pg. 434 www.lslcpas.com Summary of Results •Unmodified (“clean”) audit opinion was rendered. •No significant deficiencies or material weaknesses in internal controls were identified. •No material noncompliance with laws, regulations, grant agreements, and contracts were identified. •No audit adjustments were required. •No difficulties conducting audit or disagreements with management about accounting policies occurred.   Packet Pg. 435 Ryan Domino, CPA, Partner Ryan.Domino@lslcpas.com Kirk Hamblin, CPA, Manager Kirk.Hamblin@lslcpas.com   Packet Pg. 436 City of Son Bernordino Municipol Woter Deportment nnuol Comprehensive inoncio! Report (ACFR) As of June 30, 2022   Packet Pg. 437 Audit Actuals FY 2022 FY 2O2L S lncrease/ (Decrease) % Change Operating Revenue Operating Expenses less Depreciation Net Operating I ncome/( loss) Non-Operating Reve nue/( Expense) Net lncome before Capital Contributions 543,150,L24 542,758,!92 32,372,62L 34,U7,968 10,777,503 8,116,224 483,961 791,527 11,26L,464 8,n7,75L 2,353,7L3 s 391,932 (2,269,3471 _2,551,2?9_ (307,556) 0.92% (6.ss%) 32.79% (38.85%) 26.42% Woter Fund Results   Packet Pg. 438 FY 2022 Actuals S lncrease/ (Decrease) %i Change Operating Revenue S 39,825,500 Operati ng Expenses less Depreciation 37,748,092 46,251 8.35% (74.24%) 478.80% ]i0.57% 8,76,356 347.75% 543,150,!24 32,372,62'1, 5 3,324,624 (5,375,471) 8,700,095N et O pe rati n g I n co m e/( I o ssl _2,077, 4O8_ _L0 J??,503_ Non-Operating Revenue/(Expense) 437,700 483,961 Net lncome before Capital Contributions 2,515,108 LL,26t,464 Woter Fund Results   Packet Pg. 439 Audit Actuals FY 2022 FY 2027 34,777,160 30,361,115 3,810,044 $ lncrease/ (Decrease) % Change 12.55% (0.06%l 48.Str/o (2L.3t%) 89.37% Operating Revenue Operating Expenses less Depreciation Net Operating I ncome/(loss) Non-Operating Reve nue/( Expense) Net lncome before Capital 22,465,2L2 22,478,5L6 (13,304) 11,705,948 7,882,6@ 3,823,348::: (2,288,006) (2,907,6571 619,651 Contributions 9,417,942 4,974,943 4,42,999 Sewer Treotment Fund Results   Packet Pg. 440 Net Ope rati ng I ncome/( loss) _2,954239_ Non-Operating Revenue/(Expense) (833,700) Net lncome before Capital Contributions 2,12O5!10 FY 2022 Budget Actuals OperatingRevenue 28,517,000 34,171,760 Operati ng Expenses less Depreciation 25,562,770 22,465,212 S !ncrease/ (Decrease) %Change 5,654160 19.83% (3,097,558) (12.72%) _11J05,948_ _8J51,?18_ 296.24% (2,288,005) (1,454,306) 174.M% 9,417,912 7,297,412 3M.13% Sewer Treotment Fund Results   Packet Pg. 441 Audit Actuals S lncrease/ (Decrease) % ChangeFY 2022 FY 2O2L Operating Revenue Operating Expenses less Depreciation Net Operating I ncome/(loss) Non-Operating Reve nue/( Expense) Net lncome before Capital Contributions 6,394,623 7,794,418 (1,399,795) (!21,727l. (17.960/0) (1..84o/o)6,459,718 6,580,845 1,213,573_(6s,oss)_ (51L,234l (575,329) (1,278,668) (105.36%) L0,911 (522,1451 (4,785.49%) (1,8(n,813) (L47.07%)t,224,484 Sewer Collection Fund Results   Packet Pg. 442 FY 2022 Budget Actuals Operating Revenue 7,710,000 5,394,623 Operating Expenses less Depreciation 7,679,4U 6,459,718 Net Operating lncome/(loss) 3O515 (65,095) $ lncrease/ (Decrease) (L,315,3771 ('t,2L9,766) (95,611) %o Change (17.06%) (1s.88%) (3t3.31%) Non-Operating Revenue/(Expense) 402,000 (571.,234) (913,234) (227.77%l Net lncome before Capital Contributions 432,516 _(s?5,3?gl _G,00&84s1_ Q33.2s%',) Sewer Collection Fund Results   Packet Pg. 443 1 1 7 6 PUBLIC HEARING City of San Bernardino Request for Council Action Date:March 15, 2023 To:Honorable Mayor and City Council Members From:Charles E. McNeely, Interim City Manager: Nathan R. Freeman, Agency Director of Community, Housing, and Economic Development Department:Community, Housing, & Economic Development (CED) Subject:Development Permit Type-P 22-03 (Ward 2) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2023-045 of the Mayor and City Council of the City of San Bernardino, California, approving Development Permit Type–P 22-03 allowing the conversion of an existing two-story office building, containing approximately 9,988 square feet, into an apartment complex consisting of twelve (12) multiple-family residential units on a project site consisting of three (3) parcels containing a total of approximately 0.68 acres located at 1490 N. D Street (APNs: 0145-181-03, 04, and 13), within the Commercial Office (CO) zone and Adaptive Reuse (AR) Overlay, and finding the project is subject to a Categorical Exemption under the California Environmental Quality Act. Background On January 10, 2023, the Planning Commission adopted Resolution No. 2023-003 forwarding a recommendation that the Mayor and City Council (Attachment 3): 1. Find the Categorical Exemption, pursuant to Section 15303 (New Construction or Conversion of Small Structures) and Section 15332 (In-Fill Development Projects) for Development Permit Type-P 22-03 in accordance with the California Environmental Quality Act; and 2. Approve Development Permit Type-P 22-03 based on the Findings of Fact and subject to the recommended Conditions of Approval. Discussion Setting and Site Characteristics The project site is comprised of an approximately 0.68-acre parcel located at 1490 N.   Packet Pg. 444 1 1 7 6 D Street, within the Commercial Office (CO) zone and Adaptive Reuse (AR) Overlay (Attachments 4 and 5). The project site is currently developed with an existing two- story office building, parking lot, and is surrounded by a mix of commercial and residential uses. Table 1, below, provides a summary of the surrounding land use characteristics of the subject site and surrounding properties. LOCATION LAND USE ZONE GENERAL PLAN DESIGNATION Site Office Building Commercial General (CO) Commercial North Offices and Residential Commercial General (CO)Commercial South Offices and Residential Commercial Office (CO) and Residential Suburban (RS) Commercial and Residential East Residential Residential Suburban (RS)Residential West Residential Commercial (CO)Commercial Analysis Ordinance No. 1479 was adopted by the Mayor and City Council on April 4, 2018, amending Chapter 19.19 (Main Street Overlay District) of the City of San Bernardino Development Code which added the Adaptive Reuse (AR) Overlay to allow the conversion of existing commercial and office building to residential units within specified areas. The intention of the AR Overlay is to allow for the reuse of existing buildings within the City that have been underutilized due to there being a decline in the need for traditional office and commercial spaces, into viable residential purposes within strategic areas that have become blighted from the lack of consistent use. This will aid in meeting the increased housing needs in the City. The AR Overlay is a flag shaped overlay bounded approximately by the south side of Highland Avenue on the north, the west side of D Street on the west, east side of Waterman Avenue on the east, the north side of Baseline Street on the south from Waterman Avenue to D Street, then both sides of D Street from Baseline Street to 8th Street. With this in mind, the project applicant is requesting the conversion of an existing two- story office building, containing approximately 9,988 square feet, into an apartment complex consisting of twelve (12) multiple-family residential units on a project site consisting of three (3) parcels containing a total of approximately 0.68 acres, in accordance with Section 19.19-B.030 (General Provisions - Adaptive Reuse (AR) Overlay) and Section 19.44.030 (Applicability and Project Review – Administrative and Development Permits) of the City of San Bernardino Development Code. Site Design/ Access/ Off-Street Parking The proposed conversion of the existing two-story office building into a twelve (12) unit apartment complex will contain six (6) residential units on the first floor and six (6) residential units on the second floor ranging in size from 711 square feet to 1,000   Packet Pg. 445 1 1 7 6 square feet. Each unit will contain one (1) to two (2) bedrooms, bathrooms, kitchen facilities and washer/drier availability. An open space courtyard of approximately 1,057 square feet with picnic area will be provided and only accessible by the building’s tenants. Additionally, the project site will maintain primary access through W. Magnolia Avenue via two (2) driveway approaches. The internal site circulation has been designed to adequately accommodate on-site vehicular circulation and access to off-street parking areas. In accordance with Section 19.19-B.040 (4) (Development Standards – Adaptive Reuse (AR) Overlay) of the City of San Bernardino Development Code, the project applicant is required to provide one (1) parking space per residential unit, plus one (1) guest parking space per every five (5) units for a total of a total of fifteen (15) parking spaces. However, the project site parking area will be improved to accommodate twenty-one (21) parking spaces to include two (2) accessible parking stalls. Designated "paths of travel" have also been provided to ensure pedestrian safety. Traffic Based on the size of the project and number of trips generated, the City’s Traffic Engineer Division did not require the review of a project scope study form for Levels of Service (LOS), and the Vehicle Miles Traveled (VMT) assessment. The Traffic Engineer has determined that the proposed project will not have a significant impact on the surrounding roadways or intersections. Architecture The proposed project meets design guidelines outlined in the City’s Development Code for commercial land uses. The existing two-story building will be rehabilitated to accommodate the conversion to a multiple residential use by modernizing exterior elevations through the use of modern neutral colors, new windows, stucco finish and wood siding to match existing architectural components. Landscaping The proposed project will restore existing landscape areas and incorporate new landscaping within specified parking and setback areas, as required. Access to the off- street parking from W. 15th Street will be closed to accommodate a new five (5) foot landscape setback that will continue to the west side of the site with an approximately new twelve (12) foot landscape setback. The landscape areas will consist of various trees ranging in size with 24-inch and 15-gallon size Brisbane Box and Crape Myrtle. In the internal off-street parking areas, there will be existing landscape with mixture of 1-gallon and 5-gallon shrubs. Operations The proposed apartment residential complex will be accessible to occupants, and visitors of occupants, 24 hours a day, seven (7) days a week. The facility will incorporate security cameras at various vantage points along the sides of W. 15th Street, N. D Street and W. Magnolia Avenue.   Packet Pg. 446 1 1 7 6 California Environmental Quality Act 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 22-03 and concluded that Development Permit Type-P 22-03 is found to be exempt under Section 15061(b)(2) (Review for Exemption) of CEQA, under Section 15332 (In-Fill Development Projects) and Section 15303 (New Construction or Conversion of Small Structures) of CEQA. A Class 32 Categorical Exemption consists of projects characterized as in-fill development meeting the conditions contained within Section 15332 of CEQA. A Class 32 covers projects consisting of small project on less than five (5) acres due to the property located and surrounded by existing commercial and residential development and has no significant negative impacts on the environment are anticipated to result from development of the site. The design of the site will not have any significant negative impacts to wildlife or their habitat, and no sensitive or protected species have been identified on the existing site. A Class 3 Categorical Exemption also consists of projects characterized as construction and location of limited numbers of new, small facilities or structures; installation of small new equipment and facilities in small structures; and conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structure. A Class 3 covers projects in urbanized areas, up to four (4) such commercial buildings not exceeding 10,000 square feet in floor area on sites zoned for such use, if not involving the use of significant amounts of hazardous substances where all necessary public services and facilities are available, and the surrounding area is not environmentally sensitive. 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 22-03 aligns with Strategic Target 3 Improved Quality of Life. The proposed conversion of an existing office building into residential units will create a benefit to the surrounding neighborhood by reusing an existing blighted property along a commercial and residential corridor creating a clean landscape property with modern design that will enhance the aesthetic of the area while helping the City meet its housing needs. Fiscal Impact There is no fiscal impact to the General Fund associated with this report. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2023-045 of the Mayor and City Council of the City of San Bernardino, California, approving Development Permit Type–P 22-03 allowing the   Packet Pg. 447 1 1 7 6 conversion of an existing two-story office building, containing approximately 9,988 square feet, into an apartment complex consisting of twelve (12) multiple-family residential units on a project site consisting of three (3) parcels containing a total of approximately 0.68 acres located at 1490 N. D Street (APNs: 0145-181-03, 04, and 13), within the Commercial Office (CO) zone and Adaptive Reuse (AR) Overlay, and finding the project is subject to a Categorical Exemption under the California Environmental Quality Act. Attachments Attachment 1 Resolution No. 2023-045 (Approving Development Permit Type-P 22-03) Attachment 2 Resolution No. 2023-045, Exhibit A - Plans Attachment 3 Planning Commission Resolution No. 2023-003 Attachment 4 Aerial Map Attachment 5 Location/Zoning Map Attachment 6 Power Point Attachment 7 Newspaper Publication Ward: Second Ward Synopsis of Previous Council Actions: None   Packet Pg. 448 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 1 of 21 2 3 2 6 RESOLUTION NO. 2023-045 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING DEVELOPMENT PERMIT TYPE–P 22-03 ALLOWING THE CONVERSION OF AN EXISTING TWO- STORY OFFICE BUILDING CONTAINING APPROXIMATELY 9,988 SQUARE FEET INTO AN APARTMENT COMPLEX CONSISTING OF TWELVE (12) MULTIPLE-FAMILY RESIDENTIAL UNITS ON A PROJECT SITE CONSISTING OF THREE (3) PARCELS CONTAINING A TOTAL OF APPROXIMATELY 0.68 ACRES LOCATED AT 1490 N. D STREET (APNS: 0145-181- 03, 04, AND 13), WITHIN THE COMMERCIAL OFFICE (CO) ZONE AND ADAPTIVE REUSE (AR) OVERLAY AND FINDING THE PROJECT IS SUBJECT TO A CATEGORICAL EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT. WHEREAS, on April 28, 2022, pursuant to the requirements of Chapter 19.19-B (Adaptive Reuse (AR) Overlay) and Chapter 19.44 (Administrative and Development Permits) of the City of San Bernardino Development Code, an application for Development Permit Type-P 22-03 was duly submitted by: Applicant: Jose Ponce 2086 S. E Street San Bernardino, CA 92408 Owner: Penny More, LLC 2086 N. State Street, # 100 San Bernardino, CA 92405 Property Address: 1490 N. D Street APN(S): 0145-181-03, 04, and 13 Lot Area: 0.68 Acres WHEREAS, Development Permit Type-P 22-03 is a request to allow the conversion of an existing two-story office building containing approximately 9,988 square feet into an apartment complex consisting of twelve (12) multiple-family residential units on a project site consisting of three (3) parcels containing a total of approximately 0.68 acres; and WHEREAS, the Planning Division of the Community and Economic Development Department has reviewed Development Permit Type-P 22-03 for consistency with the City of San Bernardino General Plan, and compliance with the City of San Bernardino Development Code; and   Packet Pg. 449 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 2 of 21 2 3 2 6 WHEREAS, pursuant to the requirements of the California Environmental Quality Act (“CEQA”), the Planning Division of the Community and Economic Development Department has evaluated Development Permit Type-P 22-03 and determined that it is exempt from CEQA pursuant to 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; and WHEREAS, on November 9, 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 22-03 to the Planning Commission for consideration; and WHEREAS, on January 10, 2023, 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 No. 2023-003 recommending the Mayor and City Council find the Categorical Exemption in accordance with the California Environmental Quality Act, and approve Development Permit Type-P 22-03 based on the Findings of Fact and subject to the recommended Conditions of Approval; and WHEREAS, notice of the March 15, 2023 public hearing for the Mayor and City Council's consideration of this proposed Resolution was published in The Sun newspaper on March 4, 2023, and was mailed to the owners and tenants of the properties located within 1,000 feet of the subject property in accordance with Development Code Chapter 19.52 (Hearing and Appeals); and WHEREAS, pursuant to the requirements of Chapter 19.19-B (Adaptive Reuse (AR) Overlay) 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 Development Permit Type-P 22-03. 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. The Mayor and City Council having independently reviewed and analyzed the record before it, including written and oral testimony, and having exercised their independent judgment, finds that there is no substantial evidence supporting a fair argument that approval of Development Permit Type-P 22- 03 will result in a significant effect on the environment, and thus the project is exempt pursuant to Section 15303 (New Construction or Conversion of Small Structures) and Section 15332 (In-Fill Development Projects) of the California Environmental Quality Act guidelines due to the fact that the activity does not result in a direct or reasonably foreseeable indirect physical change in the environment.   Packet Pg. 450 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 3 of 21 2 3 2 6 SECTION 3.Findings of Fact – Development Permit Type-P 22-03 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 conversion of an existing two-story office building containing approximately 9,988 square feet into an apartment complex consisting of twelve (12) multiple-family residential units is a permitted use within the within the Commercial Office (CO) zone and Adaptive Reuse (AR) Overlay, subject to the approval of a Development Permit. The proposal under the Development Permit Type-P 22-03 will be developed in compliance with all applicable provisions of the City of San Bernardino Development Code, including development standards and applicable design guidelines that will buffer the residential uses in the residentially zone properties to the west of the project site. Additionally, the adaptive reuse of the existing commercial office structure will allow the strategic conversion of a underutilized site that will allow the City to meet its housing needs in accordance to the General Plan, and Conditions of Approval will be applied to the proposed project to ensure that the project will meet the necessary development standards and design guidelines. Finding No. 2:The proposed use is consistent with the General Plan. Finding of Fact: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. 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 Housing Element Policy 3.1.1: Provide adequate sites to accommodate the production of a variety of housing types through land use designation, zoning, specific plans, and overlay zones. General Plan Housing Element Policy 3.2.4: Encourage and facilitate the rehabilitation and reuse of distressed and abandoned properties. General Plan Community Design Element Policy 5.6.4: Provide usable common space amenities. Common open space should be centrally located and contain amenities such as seating, shade and play equipment. Private open space may include courtyards, balconies, patios, terraces, and enclosed play areas.   Packet Pg. 451 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 4 of 21 2 3 2 6 General Plan Circulation Element Policy 6.9.1: Ensure that developments provide an adequate supply of parking to meet its needs either on-site or within close proximity. The proposed project implements the above General Plan goals and policies in that the proposed rehabilitation and reuse of an existing building for the purposes of providing new housing stock will incorporate a modern design to include new parking area, open space, and sizable residential units. The 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 area. Additionally, through this proposal the existing property will be transformed from an underutilized property into a development that meets the City’s Land Use, Housing Community and Circulation goals, while satisfying the Development Code requirements. Additionally, through this proposal the existing property will be transformed from an underutilized property into a development that meets the City’s economic development goals, while satisfying the Development Code requirements, and will be adequately regulated through the Conditions of Approval in order to minimize potential impacts. 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 conversion of an existing two-story office building containing approximately 9,988 square feet into an apartment complex consisting of twelve (12) multiple-family residential units will be harmonious and compatible with existing and future commercial development within the surrounding area. The surrounding area consists of a mixture of residential and commercial uses. Appropriate Conditions of Approval have been imposed on the proposed development to ensure that the surrounding area will not be negatively impacted by the development of the proposed project. The scale and density of the proposed development conforms to the development standards of the Commercial Office (CO) zone and Adaptive Reuse (AR) Overlay. Additionally, the proposal is consistent with both the General Plan and Development Code subject to approval of the associated amendments, and no land use conflict is expected to result from construction of the proposed project. Finding No. 4 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.   Packet Pg. 452 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 5 of 21 2 3 2 6 Finding of Fact: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 22-03 and concluded that Development Permit Type-P 22-03 is found to be exempt under Section 15061(b)(2) (Review for Exemption) of CEQA, under Section 15332 (In-Fill Development Projects) and Section 15303 (New Construction or Conversion of Small Structures) of CEQA. A Class 32 Categorical Exemption consists of projects characterized as in-fill development meeting the conditions contained within Section 15332 of CEQA. A Class 3 Categorical Exemption consists of projects characterized as construction and location of limited numbers of new, small facilities or structures; installation of small new equipment and facilities in small structures; and conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structure. Additionally, a Class 32 covers projects consisting of small project on less than five (5) acres due to the property located and surrounded by existing commercial and residential development and has no significant negative impacts on the environment are anticipated to result from development of the site. The design of the site will not have any significant negative impacts to wildlife or their habitat, and no sensitive or protected species have been identified on the existing site. A Class 3 covers projects in urbanized areas, up to four (4) such commercial buildings not exceeding 10,000 square feet in floor area on sites zoned for such use, if not involving the use of significant amounts of hazardous substances where all necessary public services and facilities are available, and the surrounding area is not environmentally sensitive. 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. 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. Finding of Fact:The project site is located within an urbanized area and is surrounded by existing development. Therefore, no significant negative impacts on the environment are anticipated to result from the proposed development. Finding No. 6:The subject site is physically suitable for the type and density/intensity of use being proposed. Finding of Fact:The site is physically suitable for the type and density/intensity of the project being proposed as evidenced by project compliance with the   Packet Pg. 453 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 6 of 21 2 3 2 6 applicable Development Code Standards. The size of the project site is adequate to accommodate the proposed conversion with necessary improvements, in compliance with the requirements of the 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 building. The existing site is located adjacent to and already served by existing public streets and a full range of public utilities and services. All applicable Codes will apply to the proposed development. Therefore, subject to the Conditions of Approval, the proposed development under Development Permit Type-P 22-03 will not be detrimental to public services or public health and safety. Finding No. 8 The location, size, design, and operating characteristics of the proposed use are compatible with the existing and future land uses within the general area in which the proposed use is to be located and will not create significant noise, traffic or other conditions or situations that may be objectionable or detrimental to other permitted uses in the vicinity or adverse to the public interest, health, safety, convenience, or welfare of the City. Finding of Fact:The proposed conversion of an existing two-story office building containing approximately 9,988 square feet into an apartment complex consisting of twelve (12) multiple-family residential units conforms to all applicable development standards and land use regulations of the proposed Commercial Office (CO) zone and Adaptive Reuse (AR) Overlay. 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 averse 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 5. Conditions of Approval. Development Permit Type-P 22-03, are hereby approved, subject to the following Conditions of Approval: 1. This approval is to the conversion of an existing two-story office building containing approximately 9,988 square feet into an apartment complex consisting of twelve (12) multiple- family residential units on a project site consisting of three (3) parcels containing a total of   Packet Pg. 454 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 7 of 21 2 3 2 6 approximately 0.68 acres. The project site is located at 1490 North D Street (APNs: 0145-181- 03, 04, and 13), within the Commercial Office (CO) and Adaptive Reuse (AR) Overlay. 2. The project site shall be developed and maintained in accordance with: (i) the plans stamped March 15, 2023 (EXHIBIT “A”), approved by the City, which includes a site plan, floor plan, exterior-elevations plan, and conceptual-landscaping plan 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 approval of the Development Permit, 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: March 15, 2025 4. The review authority may grant a time extension, 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 Development Permit, this condition shall remain in effect if the Development Permit is rescinded or revoked, whether or not at the request of applicant. Planning Division   Packet Pg. 455 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 8 of 21 2 3 2 6 6. 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. 7. 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. 8. The project landscape plans shall be in substantial compliance with the Conceptual Landscape plan and prepared in accordance with the Development Code, section 19.28.120 (Water Efficient Landscaping Standards). 9. Minor modifications to the plans shall be subject to approval by the Director through the Minor Modification Permit process. Any modification that exceeds 10% of the allowable measurable design/site considerations shall require the re-filing of the original application. 10. 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. 11. 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. 12. The facility operator and 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 or any other undesirable material(s). Vandalism, graffiti, trash, and other debris shall be removed and cleaned up within twenty-four (24) hours of being reported. 13. Signs are not approved as part of this permit. Prior to establishing any new signs, or to replacing existing signs, the applicant shall submit an application and receive approval for a Sign Permit from the Planning Division. Banners, flags, pennants, and similar signs are prohibited unless a Temporary Sign Permit is obtained. 14. All new construction shall require permits prior to commencement. 15. All formal submittals to the Building and Safety Division shall include all required documentation. Submittal requirements for permit applications with the Building and Safety Division shall include all Conditions of Approval issued with this approval, printed on the plan sheets. 16. All Conditions of Approval and Standard Requirements shall be implemented and/or completed prior to final inspection and/or issuance of a Certificate of Occupancy.   Packet Pg. 456 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 9 of 21 2 3 2 6 17. No Final Certificate of Occupancy will be issued until all Conditions of Approval have been completed. Public Works Department 18. Grading and Landscaping a) A liquefaction evaluation is required for the site. This evaluation must be submitted and approved prior to issuance of a grading permit. Any grading requirements recommended by the approved liquefaction evaluation shall be incorporated in the grading plan. b) 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. c) The refuse enclosure(s) shall be constructed in accordance with City Standard Drawing No. 508 with an accessible path of travel. 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. d) Retaining walls, block walls and all on-site fencing shall be designed and detailed on the on-site improvement 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. e) 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: 1.1 foot-candle of illumination uniformly distributed over the surface of the parking lot during hours of operation, and 2.0.25 foot-candles security lighting during all other hours. f) 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. g) A Lot Merger is required for this project. The Lot Merger shall be recorded prior to Building Permit issuance. The applicant is directed to the City’s web page at www.sbcity.org– Departments – Public Works – Submittal Requirements for submittal requirements. h) 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. Where parking overhangs the pathway, the minimum paved width shall be 6.5 feet. All accessible parking spaces shall be a minimum of 18 feet by 9 feet net.   Packet Pg. 457 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 10 of 21 2 3 2 6 i) 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. 19. 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) On-site utility services shall be placed underground and easements provided as required. e) Existing Utilities which interfere with new construction shall be relocated at the Developer's expense as directed by the City Engineer. 20. Off-street Improvement and Dedications 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 “D” Street (145-181-03, 145-181-04 145-181-13) 41.25’ Existing 2.75’ Dedication for a total ½ width of 44’ “Secondary Arterial” 32’ Existing None-Proposed Per General Plan Magnolia Avenue (145-181-03, 145-181-04 145-181-13) 30’ Existing No Dedication for a total ½ width of 30’ “Local - Continuous” 20’ Existing None-Proposed Per General Plan 15th Street (145-181-03, 145-181-04 145-181-13) 15’ Existing 15’ (Future Dedication) “Local - Continuous” 9’ Existing edge of pavement 14’ widening required from centerline b) “D” Street – TI = 7.5: i) The street shall be rehabilitated to meet the requirements detailed in a soils report based on the “R” value of the subgrade and the traffic Index, or The City’s has a minimum of 2” Grind and Overlay; However, if the Soils   Packet Pg. 458 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 11 of 21 2 3 2 6 Report is obtained and indicates a thicker improvement, the thicker section shall be used. 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 fair condition, if any/all curb & gutter panels, and sidewalk panels are lifted, cracked, or do not meet current ADA requirements, each of the panels shall be replaced per city standards. iv) The corner shall be a 35’ Radius including a compliant ADA ramp with By- Pass and Truncated Domes. City of San Bernardino - Street Improvement Policy. v) When Replacing/Reconstructing Curb and Gutter panels, Construct 8" Curb and Gutter per City Standard No. 200, type “B”, City of San Bernardino - Street Improvement Policy. vi) When Replacing or reconstructing Sidewalk panels, Construct Sidewalk per City Standard No. 202; Case "A" (6’ wide adjacent to curb). M12.92.050, MC19.30.170, Ord. MC-1027, 9-09-98; Ord. MC-691, 12-19-89, City of San Bernardino - Street Improvement Policy vii) An ADA Ramp shall be constructed at corner in accordance with the SPPWC (Standard Plans for Public Works Construction) or Caltrans Standard plans A88A. Federal Highway – DIB82-04, City of San Bernardino - Street Improvement Policy. viii) Existing Street Light System shall be replaced to LED (Head-Bulb) in accordance with City Standard Nos. SL-1, SL-2, and SL-3. Also, when more than three (3) streetlights a separate light sheet may be submitted in accordance with the City of San Bernardino Street Lighting Design Policies. Install ID Plate on Street light pole. As directed by the City Engineer. ix) Remove or underground existing non-electrical (Non-SCE) Poles. 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) 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. c) Magnolia Avenue – TI = 5.5 : * - ** i) The street concrete panels that are cracked, potholed, have trenched, or are destroyed shall be replaced, as directed by the City Engineer.   Packet Pg. 459 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 12 of 21 2 3 2 6 ii) When Striping, all striping shall be thermoplastic paint per section 84 of the Caltrans specifications. iii) The existing curb & gutter, and sidewalk fronting the site are in fair condition, if any curb & gutter panels, and sidewalk panels are lifted, cracked, or do not meet current ADA requirements, each of the panels shall be replaced per city standards. iv) The Existing Driveways do meet the current ADA requirements, replace the driveways to city standards. v) The corner shall be a 35’ Radius including a compliant ADA ramp with By- Pass and Truncated Domes, Federal Highway – DIB82-04, City of San Bernardino - Street Improvement Policy. vi) 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, MC12.28.060, MC12-28-100, MC15.04.230, MC16.20.030, 19.24.060, MC19.30.200, Ord. MC-1027, 9- 09-98; Ord. MC-460, 5-15-85; Ord. MC-320, 12-06-83; Ord. 3918, 2-25- 80; Ord. 2519, 8-20-63; Ord. 1963, 11-18-52, Ord. MC-1531, 6-03-20, City of San Bernardino - Street Improvement Policy. vii) When Replacing/Reconstructing Curb and Gutter panels, Construct 8" Curb and Gutter per City Standard No. 200, type “B”, City of San Bernardino - Street Improvement Policy. viii) When Replacing or reconstructing Sidewalk panels, Construct Sidewalk per City Standard No. 202; Case "A" (6’ wide adjacent to curb), M12.92.050, MC19.30.170, Ord. MC-1027, 9-09-98; Ord. MC-691, 12-19-89, City of San Bernardino - Street Improvement Policy. ix) An ADA Ramp shall be constructed at corner in accordance with the SPPWC (Standard Plans for Public Works Construction) or Caltrans Standard plans A88A, Federal Highway – DIB82-04, City of San Bernardino - Street Improvement Policy. x) Underground existing Poles, all utility line(s) including electrical under 34kv shall be underground and poles removed, MC19.20.030.28, MC19.30.110, City of San Bernardino Public Works - Street Improvement Policy. xi) When Replacing/Reconstructing or Constructing sidewalk, install 2-3” Conduit 36” under the sidewalk with pull rope and pull boxes for future Traffic connections. 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   Packet Pg. 460 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 13 of 21 2 3 2 6 Preservation Guidelines, Copies of Recorded Monuments/Ties shall be delivered to Public Works/Engineering. d) 15th Street – TI = 5.5 : * - ** i) The street shall be rehabilitated to meet the requirements detailed in a soils report based on the “R” value of the subgrade and the Traffic Index, or The City’s has a minimum standard for new streets (4” AC over 8” Base) except truck usage (9”AC over 12” Base); However, if the Soils Report is obtained and indicates a thicker improvement, the thicker section shall be used. ii) When Striping, all striping shall be thermoplastic paint per section 84 of the Caltrans specifications. iii) The corner shall be a 35’ Radius including a compliant ADA ramp with By- Pass and Truncated Domes, As Directed by the City Engineer, City of San Bernardino - Street Improvement Policy. iv) 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, MC12.28.060, MC12-28-100, MC15.04.230, MC16.20.030, 19.24.060, MC19.30.200, Ord. MC-1027, 9- 09-98; Ord. MC-460, 5-15-85; Ord. MC-320, 12-06-83; Ord. 3918, 2-25- 80; Ord. 2519, 8-20-63; Ord. 1963, 11-18-52, Ord. MC-1531, 6-03-20, City of San Bernardino - Street Improvement Policy. v) Construct 8" Curb and Gutter per City Standard No. 200, type “B”, City of San Bernardino - Street Improvement Policy. vi) An ADA Ramp shall be constructed at corner in accordance with the SPPWC (Standard Plans for Public Works Construction) or Caltrans Standard plans A88A, Federal Highway – DIB82-04, City of San Bernardino - Street Improvement Policy. vii) No Parking will be allowed on 15th Street, install signs per city standards. viii) 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 DERC 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).   Packet Pg. 461 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 14 of 21 2 3 2 6 e) 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, Reso 2018-264, Reso 2019-178. f) 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. g) 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. h) Any pavement works affecting the traffic loop detectors shall be coordinated and subjected to Public Works Traffic Division requirements. i) The applicant must post a performance bond (Insurance, Deposit) prior to issuance of the off-site permit. The amount of the bond is to be determined by Public Works Department, MC12.03.110, Ord. MC-1027, 9-09-98; Ord. MC-1004, 10-21-97. j) The above conditions shall comply with current codes, policies, and standards at time of construction. k) Prior to Certificate of Occupancy or Completion of Project all As-builts and Centerline Ties shall be submitted to Public Works. 21. Traffic Requirements a) Due to the size of the project, it is not required for the applicant to submit a Traffic scope approval form. 22. Integrated Solid Waste Management 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 revised 8/12/22, identifies the conversion of an existing two-story office building into an apartment complex consisting of twelve multiple-family residential units. The project site is located at 1490 North D Street.   Packet Pg. 462 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 15 of 21 2 3 2 6 c) Burrtec Waste’s review of the Site Plan revised 8/12/22, identifies a single trash enclosure located at the northwest corner of the property. Enclosure dimensions are 15’x 8’. Access is provided by a looped 25.5-foot-wide driveway. Burrtec’s truck turning template has been added to the Site Plan. d) Based upon the information provided, the project meets or exceeds Burrtec’s minimum requirements for trash enclosure location and accessibility. The enclosure shall be designed to accommodate at least two commercial bins for trash and mixed recyclables and at least one 65-gallon cart for food waste. e) 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. f) 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. g) Construct a 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. h) Display the refuse enclosure’s interior dimensions on the Site Plan. i) As of January 1, 2022, multi-family housing projects are required to participate in a residential organics/food waste recycling program per Senate Bill 1383. This will require additional container(s) for organics/food waste. j) 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. k) Display clear drive aisle widths on the Site Plan. l) 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) m) 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. n) 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.   Packet Pg. 463 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 16 of 21 2 3 2 6 o) 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. p) 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. q) If gated, access shall be provided by means of a key, code, or remote. r) Assembly Bill 341 Mandatory Commercial Recycling may apply. s) Assembly Bill 1826 Mandatory Commercial Organics Recycling may apply. t) Senate Bill 1383 Short-Lived Climate Pollutants Reduction Act may apply. u) 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. 23. 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, ▪traffic signal plans must be submitted on separate plan sheets included in the street improvement plans (if required by conditions or traffic reports), ▪signing and striping plan (shall be in sheets included on separate plan sheets included in street improvement plans), ▪lighting for offsite plans (shall be in sheets included on separate plan sheets included in street improvement plans,), ▪CFD Plans are required, they shall include Landscaping, Irrigation, Basins, etc. that are included in the CFD that are not listed in the plans above. ▪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.sbcity.org/city_hall/public_works/engineering_division/engineering_develo   Packet Pg. 464 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 17 of 21 2 3 2 6 pment_resources. 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. 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/city_hall/public_works/engineering_division/design_policy_and_ procedure_documents. 24. Required Engineering Permits a) Grading permit / On-site improvements construction permit. b) WQMP/Hydrology. c) Lot merger. d) Landscape permit. e) Off-site improvement construction permit. 25. 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 if the construction cost estimate varies more than 10% from the estimate submitted with the application for plan checking. b) The current fee schedule is available at the Public Works Counter and at http://www.sbcity.org San Bernardino Municipal Water Department – Engineering Division 26. If any new domestic, landscape, &/or fire services are needed a request for any old services to be abandoned must be received prior to the acquisition of service credits applied to the new services. 27. For any change in use of the building or expansions being built, sewer connection & capacity fees are due prior to issuance of a building permit. 28. If there are any street improvements associated with the project, then it is the developer/s and/or engineer/s responsibility to submit a copy of the street improvements plans to SBMWD’s engineering section for review.   Packet Pg. 465 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 18 of 21 2 3 2 6 29. Four (4) or more units require water service sub-metering which can be done on-site with private meters. San Bernardino County Consolidated Fire District 30. Access. The development shall have a minimum of two points of vehicular access. These are for fire/emergency equipment access and for evacuation routes. a. Single Story Road Access Width. All buildings shall have access provided by approved roads, alleys and private drives with a minimum twenty-six (26) foot unobstructed width and vertically to fourteen (14) feet six (6) inches in height. Other recognized standards may be more restrictive by requiring wider access provisions. b. Multi-Story Road Access Width. Buildings three (3) stories in height or more shall have a minimum access of thirty (30) feet unobstructed width and vertically to fourteen (14) feet six (6) inches in height. 31. 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. 32. Building Plans. Building plans shall be submitted to the Fire Department for review and approval. 33. 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. 34. Fire Alarm – Manual. A manual, automatic or manual and automatic 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 three (3) sets of detailed plans to the Fire Department for review and approval. The required fees shall be paid at the time of plan submittal. 35. Fire Extinguishers. Hand portable fire extinguishers are required. The location, type, and cabinet design shall be approved by the Fire Department. 36. Fire Fee. The required fire fees shall be paid to the San Bernardino County Fire Department/Community Safety Division. 37. 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 to the with hydraulic calculation and manufacturers specification sheets to the Fire Department for   Packet Pg. 466 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 19 of 21 2 3 2 6 approval 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. 38. 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”. 39. 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. 40. 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. 41. Override Switch. Where an automatic electric security gate is used, an approved Fire Department override switch (Knox ®) is required. 42. 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. 43. 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. 44. 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 and shall be installed as specified in the General Requirement conditions including width, vertical clearance and turnouts. 45. 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. 46. 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. 47. 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 been made or that the existing fire hydrants and water system will meet distance and fire flow   Packet Pg. 467 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 20 of 21 2 3 2 6 requirements. Fire flow water supply shall be in place prior to placing combustible materials on the job site. 48. 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. SECTION 6. Notice of Exemption. The Planning Division of the Community 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 adopting the Categorical Exemption. SECTION 7. 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. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 15th day of March, 2023. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 468 Resolution No. 2023-045 Resolution No. 2023-045 March 15, 2023 Page 21 of 21 2 3 2 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. 2023-045, adopted at a regular meeting held on the 15th day of March, 2023 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ IBARRA FIGUEROA SHORETT REYNOSO CALVIN ALEXANDER WITNESS my hand and official seal of the City of San Bernardino this ___ day of _________, 2023. Genoveva Rocha, CMC, City Clerk   Packet Pg. 469 NOPARKINGA-1 INDEXSITE SCALE: 1"=20'-0"NO.REVISEDBYAPPROVEDBYREVISIONPROJECT ADDRESS: SHEET NO: DATE: HECTOR M. MORENO R.C.E. EXP. 06/30/22 reference:DATEAPPLICANT / DEVELOPER: PENNY MORE LLC 1490 N D ST SAN BERNARDINO,CA 92405 10-12-22C O R P O R A T I O NAEC | Moreno Corp. 236 W. ORANGE SHOW RD. SUITE 112 SAN BERNARDINO, CA 92408 Office: (909) 440-2855 Fax: (909) 533-2263 1490 N D ST SAN BERNARDINO,CA 92405236 W. ORANGE SHOW RD. SUITE 112SAN BERNARDINO, CA 92408Office: (909) 440-2855Fax: (909) 533-2263www.aecmoreno.comCONVERSION OF EXISTING OFFICEBUILDING TO APARTMENT COMPLEX1Preliminary Application 22-02 Revisions(02/23/2022)MD04/01/222DP-P22-03 Application Revisions #1(07/28/2022)MD08/12/22D ST.CLVICINITY MAP PROJECT DATA A.P.N.: ZONING: OWNER: APPLICANT: DESIGNER: 0145-181-13, 0145-181-03 & 0145-181-04 COMMERCIAL OFFICE PENNY MORE LLC. 432 E. REDLANDS BLVD #C SAN BERNARDINO, CA 92408 JOSE PONCE 2086 S. E ST. SUITE 100 SAN BERNARDINO, CA 92408 AEC MORENO 236 W ORANGE SHOW RD, STE. 112 SAN BERNARDINO, CA 92408 PHONE NO.: (909) 440-2855 LOT 1,2,3 and 4 OF REVISED MAP OF MAGNOLIA PARK, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 17,PAGE 81 OF MAPS, RECORDS OF SAID COUNTY SAN BERNARDINO SAN BERNARDINO CALIFORNIA TYPE V-B R-2 ALL WORK SHALL COMPLY WITH THE 2019 CALIFORNIA BUILDING CODE 2019 CALIFORNIA PLUMBING CODE 2019 CALIFORNIA ELECTRICAL CODE 2019 CALIFORNIA MECHANICAL CODE 2019 CALIFORNIA FIRE CODE 2019 CALIFORNIA ENERGY CODE 2019 CALIFORNIA GREEN BUILDING STANDARDS CODE TWO STORY YES CITY: CONSTRUCTION TYPE: OCCUPANCY GROUP: APPLICABLE CODES: LEGAL DESCRIPTION: COUNTY: STATE: NUMBER OF STORIES: AUTOMATIC FIRE SPRINKLERS: SHEET INDEX A-1. SHEET INDEX A-1.1. DEMO. SITE PLAN A-1-2. PROPOSED SITE PLAN A-2. EXISTING/DEMO 1ST STORY FLOOR PLAN A-3. EXISTING/DEMO 2ND STORY FLOOR PLAN A-4. 1ST STORY PROPOSED FLOOR PLAN A-5. 2ND STORY PROPOSED FLOOR PLAN A-6. ELEVATIONS A-7. ELEVATIONS A-8. COLOR ELEVATIONS A-9. COLOR ELEVATIONS A-10. RENDER A-11. COLOR & MATERIAL SAMPLE BOARD A-12. COLOR & MATERIAL SAMPLE BOARD CL-1. CONCEPTUAL LANDSCAPE PLAN SCOPE OF WORK BUILDING SUMMARY THE PROJECT CONSISTS OF THE CONVERSION OF AN EXISTING TWO STORY OFFICE BUILDING TO AN APARTMENT COMPLEX. THE PROPOSED APARTMENT COMPLEX WILL CONSIST OF A TOTAL OF 12 APARTMENTS, 11 WILL 2 BEDROOM & 1 WILL BE 1 BEDROOM AND SQUARE FOOTAGE VARY FROM 679.00 SF. - 1,000.00 SF. PARKING SPACE ANALYSIS BUILDING USE:PARKING RATE: NO. OF ADAPTIVE REUSE 1 PARKING PER UNIT + 1 EVERY 5 UNITS 21 SPACES 12 TOTAL SPACES REQUIRED: 14.4 PARKING REQUIREMENT BY SECTION 19.19-B.040 (4) OF CITY OF SAN BERNARDINO REQUIREMENTS. PER 11B-208.2 MINIMUM NUMBER OF ACCESSIBLE PARKING SPACES REQUIRED TOTAL PARKING PROVIDED 26-50 2 HANDICAPPED PARKING STALLS. 2 HANDICAPPED PARKING STALLS PROVIDED OK. OVERLAY PER SEPARATE PERMIT SITE PLAN CONVERSION OF EXISTING OFFICE BUILDING TO APARTMENT COMPLEX APN:0145-181-13,0145-181-03 & 0145-181-04 PROJECT LOCATION MAP NOT TO SCALECL15TH ST.CLCL MAGNOLIA AVE. CLCLZONING:RESIDENTIAL SUBURBAN (RS)APN:0145-181-05ZONING: COMMERCIAL OFFICE (CO) APN:0145-182-24APN:0145-182-23 ZONING: RESIDENTIAL SUBURBAN (RS) APN:0145-182-25 ZONING: RESIDENTIAL SUBURBAN (RS) APN:0145-182-20 ZONING: RESIDENTIAL SUBURBAN (RS) APARTMENTS 1ST FLOOR APARTMENTS: APARTMENT NO.1 1,000.00 SF. APARTMENT NO.2 785.50 SF. APARTMENT NO.3 679.00 SF. APARTMENT NO.4 726.00 SF. APARTMENT NO.5 830.50 SF. APARTMENT NO. 6 794.00 SF. TOTAL 1ST FLOOR LIVING AREA: 4,815.00 SF. PROPOSED LIVING AREA: 2ND FLOOR APARTMENTS: APARTMENT NO. 7 905.00 SF. APARTMENT NO. 8 926.00 SF. APARTMENT NO. 9 711. 00 SF. APARTMENT NO. 10 865.50 SF. APARTMENT NO. 11 971.00 SF. APARTMENT NO. 12 794.00 SF. TOTAL 2ND FLOOR LIVING AREA: 5,172.50 SF. TOTAL PROPOSED LIVING AREA: 9,987.50 SF. APN: 0145-181-13: 15,000.00 SQ.FT.LOT AREA: EXISTING PARKING AREA: ±14,744.00 SF. EXISTING LANDSCAPE AREA: ±1,898.00 SF. EXISTING COURT YARD AREA: ±2,376.00 SF.ZONING:COMMERCIAL OFFICE (CO)APN:0145-181-04ZONING:COMMERCIAL OFFICE (CO)APN:0145-181-03ZONING:COMMERCIAL OFFICE (CO)APN:0145-181-13APN: 0145-181-03: 7,500.00 SQ.FT. APN: 0145-181-04: 7,227.00 SQ.FT. PROPERTY LINE 50.00'PROPERTY LINE 48.18'PROPERTY LINE 145.00'PROPERTY LINE 100.00' PROPERTY LINE 50.00'PROPERTY LINE 48.18'PROPERTY LINE 100.00'PROPERTY LINE 145.00'PROPERTY LINE 145.00'PROPERTY LINE 145.00'REQUIRED: 14.4 SPACES PARKING TOTAL SPACES PROVIDED: OPEN SPACE CALCULATION OPEN SPACE REQUIREMENT BY SECTION 19.19-B.040 (3) OF CITY OF SAN BERNARDINO REQUIREMENTS TOTAL BUILDING AREA: 9,987.50 SF. 10% OF 9,987.50 SF. = 998.75 SF. 998.75 SF. OF OPEN SPACE REQUIRED 1,057.00 SF. PROPOSED -SEE SHEET A-4 OPEN SPACE-INDOOR OR OUTDOOR PASSIVE OR ACTIVE RECREATIONAL OPEN SPACE MUST EQUAL A MINIMUM OF TEN PERCENT (10%) OF TOTAL SQUARE FOOTAGE OF THE BUILDING SIZE. 1 PARKING REQUIRED: ONE(1) PARKING SPACE PER RESIDENTIAL UNIT , PLUS ONE(1) PARKING SPACE FOR EVERY 5 UNITS PICTURES NOTES CAMERA LOCATION 1 PHOTO'S NUMBER 1 2 3 4 5 67   Packet Pg. 470 5.00'4.00' 24.00'NOPARKING9.83'2.75' 41.25'15.00'30.00'9.00'9.00'9.00'10.58' 18.49' A-1.1 DEMO SITE PLANKEY NOTES 1 2 3 4 5 6 7 8 EXISTING PARKING STALLS TO BE RE-STRIPED ACCESSIBLE ROUTE FROM PUBLIC STREET EXISTING PARKING LOT LIGHT POST TO PROTECT IN PLACE 9 EXISTING DRIVEWAY APPROACH TO PROTECT IN PLACE EXISTING TRASH ENCLOSURE TO BE DEMOLISHED, NEW TRASH ENCLOSURE PROPOSED, PLEASE SEE PROPOSED SITE PLAN FOR NEW LOCATION EXISTING ACCESSIBLE PARKING TO BE RELOCATED 1 NO.REVISEDBYAPPROVEDBYREVISIONPROJECT ADDRESS: SHEET NO: DATE: HECTOR M. MORENO R.C.E. EXP. 06/30/22 reference:DATEAPPLICANT / DEVELOPER: PENNY MORE LLC 1490 N D ST SAN BERNARDINO,CA 92405 10-12-22C O R P O R A T I O NAEC | Moreno Corp. 236 W. ORANGE SHOW RD. SUITE 112 SAN BERNARDINO, CA 92408 Office: (909) 440-2855 Fax: (909) 533-2263 1490 N D ST SAN BERNARDINO,CA 92405236 W. ORANGE SHOW RD. SUITE 112SAN BERNARDINO, CA 92408Office: (909) 440-2855Fax: (909) 533-2263www.aecmoreno.comCONVERSION OF EXISTING OFFICEBUILDING TO APARTMENT COMPLEX1Preliminary Application 22-02 Revisions(02/23/2022)MD04/01/222DP-P22-03 Application Revisions #1(07/28/2022)MD08/12/22D ST.CL41 3126 161 15 27 28 29 30 1 2 3 TYP. 3 TYP. 21 TYP. 4 4 5 5 EXISTING CONCRETE WALKWAY TO PROTECT IN PLACE 6 6 6 6 6 6 EXISTING LANDSCAPE TO PROTECT IN PLACE TO PROTECT IN PLACE 7 7 7 77 7 8 8 9 9 EXISTING PARKING LOT LAMP POST TO PROTECT IN PLACE 10 10 TYP. 10 TYP. 11 11 EXISTING PLANTER IN COURTYARD TO PROTECT IN PLACE 12 EXISTING WROUGHT IRON SLIDING GATE TO PROTECT IN PLACE 1212 13 EXISTING WROUGHT MAN GATE TO PROTECT IN PLACE 13 13 14 EXISTING CMU BLOCK FENCE TO PROTECT IN PLACE 14 14 1414 15 EXISTING WROUGHT IRON FENCE WITH PILASTERS TO PROTECT IN PLACE 15 15 15 15 15 16 CURB AND GUTTER TO PROTECT IN PLACE 17 EXISTING SIDEWALK TO PROTECT IN PLACE 16 16 16 16 17 17 17 1ST FLOOR COURTYARD OUTLINE1818 18 EXISTING GAS METER LOCATIONS19GGGGG GGGGG19 19 EXISTING AC PAYMENT TWO WAY DRIVEWAY TO PROTECT IN PLACE20 20 20 20 20 EXISTING PROPERTY LINE 100.00'EXISTING PROPERTY LINE 50.00'EXISTING PROPERTY LINE 48.18.00' EXISTING PROPERTY LINE 100.00'EXISTING PROPERTY LINE 50.00'EXISTING PROPERTY LINE 48.18.00'EXISTING PROPERTY LINE 145.00'EXISTING PROPERTY LINE 145.00'EXISTING PROPERTY LINE 145.00'EXISTING PROPERTY LINE 145.00'21 DEMO. SITE PLAN SCALE: 1"=10'-0" 22 22 22 DEDICATION 1 21 EXISTING PALANTERS TO BE REMOVED, AND PALM TREES TO PROTECT IN PLACE EXISTING PARKING SPOTS TO BE REMOVED EXISTING PLANTERS TO BE REMOVED 21 21 21 21 22 22 23 EXISTING WROUGHT IRON GATE TO BE REMOVED 23 24 EXISTING WROUGHT IRON GATE TO BE REMOVED & REPLACED 23 1 2 3 4 5 67 PICTURES NOTES CAMERA LOCATION 1 PHOTO'S NUMBER 21 TYP. 21 TYP. 25 EXISTING CURB TO BE REMOVED 25 25   Packet Pg. 471 5.00'4.00'9.83'2.75' 41.25'30.00'6.00'NOPARKING15.00'10.00'18.00' 25.50' 18.00'18.00'9.00'25.50'20.00'5.00'16.32'15.00'8.00' 8.00' 12.27'5.00'4.00'4.00' 26.27'26.06' 3.00' 4.00'9.00'5.00'A-1.2 PROPOSED SITE PLANKEY NOTES 1 2 3 4 5 6 7 8 PARKING STRIPING STALL (9'-0"x18'-0") ACCESSIBLE ROUTE FROM PUBLIC STREET EXISTING PARKING LOT LIGHT POST TO PROTECT IN PLACE 9 EXISTING DRIVEWAY APPROACH TO TO BE MODIFIED TO MEET CITY STANDARDS NO. 204 TYPE II, PLEASE SEE STREET IMPROVEMENT PLANS NEW PROPOSED TRASH ENCLOSURE ( 8'X15'- 2- 4 CY.) PER CITY OF SAN BERNARDINO STANDARD 508 1 NO.REVISEDBYAPPROVEDBYREVISIONPROJECT ADDRESS: SHEET NO: DATE: HECTOR M. MORENO R.C.E. EXP. 06/30/22 reference:DATEAPPLICANT / DEVELOPER: PENNY MORE LLC 1490 N D ST SAN BERNARDINO,CA 92405 10-12-22C O R P O R A T I O NAEC | Moreno Corp. 236 W. ORANGE SHOW RD. SUITE 112 SAN BERNARDINO, CA 92408 Office: (909) 440-2855 Fax: (909) 533-2263 1490 N D ST SAN BERNARDINO,CA 92405236 W. ORANGE SHOW RD. SUITE 112SAN BERNARDINO, CA 92408Office: (909) 440-2855Fax: (909) 533-2263www.aecmoreno.comCONVERSION OF EXISTING OFFICEBUILDING TO APARTMENT COMPLEX1Preliminary Application 22-02 Revisions(02/23/2022)MD04/01/222DP-P22-03 Application Revisions #1(07/28/2022)MD08/12/22D ST.CL1 1 2 3 TYP. 3 TYP. 3 TYP. 4 5 EXISTING CONCRETE WALKWAY TO PROTECT IN PLACE 6 6 6 6 6 6 EXISTING LANDSCAPE TO PROTECT IN PLACE TO PROTECT IN PLACE 7 7 7 7 7 7 8 8 8 8 INTEGRATED WASTE'S TURNING TEMPLATE, TO DO 180° TURN AND BACK UP TO PROPOSED TRASH ENCLOSURE LOCATION 10 EXISTING PALM TRESS TO PROTECT IN PLACE 11 11 EXISTING PLANTER IN COURTYARD TO PROTECT IN PLACE 12 EXISTING WROUGHT IRON SLIDING GATE TO PROTECT IN PLACE 1212 13 EXISTING WROUGHT MAN GATE TO PROTECT IN PLACE 13 13 14 EXISTING CMU BLOCK FENCE TO PROTECT IN PLACE 14 14 14 15 EXISTING WROUGHT IRON FENCE WITH PILASTERS TO PROTECT IN PLACE 15 15 15 15 16 CURB AND GUTTER TO PROTECT IN PLACE 17 EXISTING SIDEWALK TO PROTECT IN PLACE 16 16 16 16 17 17 17 1ST FLOOR COURTYARD OUTLINE1818 18 EXISTING GAS METER LOCATIONS19GGGGG GGGGG19 19 EXISTING AC PAVEMENT DRIVEWAY TO PROTECT IN PLACE20 20 20 20 20 EXISTING PROPERTY LINE 100.00'EXISTING PROPERTY LINE 50.00'EXISTING PROPERTY LINE 48.18.00' EXISTING PROPERTY LINE 100.00'EXISTING PROPERTY LINE 50.00'EXISTING PROPERTY LINE 48.18.00'EXISTING PROPERTY LINE 145.00'EXISTING PROPERTY LINE 145.00'EXISTING PROPERTY LINE 145.00'EXISTING PROPERTY LINE 145.00'21 PROPOSED SITE PLAN SCALE: 1"=10'-0" PROPOSED OPEN SPACE OUTLINE (1,057 SF)22 22 22 DEDICATION 1 1 ACCESSIBLE PARKING SIGN TYP. 70" SQ. ON POLE (ADDITIONAL SIGN STATING: VAN ACCESSIBLE IF VAN).AN ADDITIONAL SIGN BELOW THE INT. SYMBOL OF ACCESSIBILITY SHALL STATE " MINIMUM FINE $250.00" SEE DETAIL R ON SHEET DS-1. 23 VAN ACCESSIBLE PARKING (9'x19') 2123 2 15TH ST.CLCL MAGNOLIA AVE.CLCL PROPOSED ACCESSIBLE PATH OF TRAVEL 5% MAX SLOPE AND A MAX. CROSS SLOPE OF 2% 4 4 NOT IN USE24 NEW CURB & GUTTER PER STREET IMPROVEMENT PLANS25 25 25 PROPOSED LANDSCAPE26 26 26 NOT IN USE27 28 TYPICAL PAVEMENT SYMBOL 36" SQUARE WHEELCHAIR W/ OCCUPANT IN WHITE ON BLUE BACKGROUND. 28 29 PROPOSED CMU BLOCK WALL TO MATCH EXISTING 29 30 EXISTING ELECTRICAL TRANSFORMER TO PROTECT IN PLACE 30 31 PROPOSED STAIRS 32 PROPOSED WROUGHT IRON FENCE 32 33 PROPOSED COLUMN 33 34 PROPOSED CURB 34 34 1 1 31 31 2 144 SF 20 26 26 34 34 34 34 9 9 9 10 10 14 14 15 29 1011 21 2 2 2 2 2 2 2 2 35 EASEMENT PER RECORDING 81-214518 GRANTED TO SOUTHERN CALIFORNIA EDISON FOR PUBLIC UTILITIES AND INCIDENTAL PURPOSES 35 36 EASEMENT PER RECORDING 81-198685 GRANTED TO CITY OF SAN BERNARDINO FOR STREET AND HIGHWAY PURPOSE 3636   Packet Pg. 472 EXISTING KITCHEN CEIL.HIGH 9'-0" EXISTING CHURCH ROOM CEIL.HIGH 9'-0" EXISTING STORAGE CEIL.HIGH 9'-0" (E) STORAGE (E) WOMEN'S BATH (E) MEN'S BATHEXISTING ROOM CEIL.HIGH 9'-0" EXISTING ROOM CEIL.HIGH 9'-0" EXISTING ROOM CEIL.HIGH 9'-0" EXISTING ROOM CEIL.HIGH 9'-0" EXISTING ROOM CEIL.HIGH 9'-0" EXISTING ROOM CEIL.HIGH 9'-0" EXISTING ELECTRICAL ROOM CEIL.HIGH 9'-0" 2'-3"11'-2"10'-7"24'-10"22'-10"22'-10"20'-3"2'-7" 117'-4"10'-3"14'-10"13'-6"2'-2"12'-8"43'-2"9'-4"11'-0"1'-9"7'-4"16'-0"6'-9"2'-0"12'-10"2'-0"12'-10"2'-0"9'-9"2'-2"12'-0"9'-5"11'-10" 2'-0"15'-6"2'-0"12'-4"3'-2"2'-0"15'-5"2'-0"15'-10"2'-0"15'-5"2'-0"15'-5"2'-0"15'-6"2'-0"2'-0" 35'-5" 31'-10"75'-3"19'-6"7'-9"7'-10"3'-4"7'-8"3'-4"9'-4"3'-4"11'-2"6'-7"1'-10"6'-1"1'-10"6'-6"20'-8"24'-0"24'-10"22'-10"22'-10"22'-10"31'-8"30'-1"8'-0"13'-5"9'-0"20'-10"4'-2"6'-9"7'-6" 1 2 3 6 EXISTING WALL TO PROTECT IN PLACE NUMBERED KEY NOTES A-2FLOOR PLAN &ELECTRICAL PLANEXISTING WALLS TO BE DEMOLISHED EXISTING WINDOWS TO BE REMOVED 5 EXISTING DOORS TO BE REMOVED 7 EXISTING PLANTERS TO PROTECT IN PLACE 8 EXISTING COLUMNS TO PROTECT IN PLACE 9 EXISTING WINDOWS TO BE REPLACED PER WINDOW SCHEDULE SCALE: 3/16" = 1'-0" EXISTING/DEMO 1ST STORY FLOOR PLAN 10 EXISTING DOOR TO PROTECT IN PLACE NO.REVISEDBYAPPROVEDBYREVISIONPROJECT ADDRESS: SHEET NO: DATE: HECTOR M. MORENO R.C.E. EXP. 06/30/22 reference:DATEAPPLICANT / DEVELOPER: PENNY MORE LLC 1490 N D ST SAN BERNARDINO,CA 92405 10-12-22C O R P O R A T I O NAEC | Moreno Corp. 236 W. ORANGE SHOW RD. SUITE 112 SAN BERNARDINO, CA 92408 Office: (909) 440-2855 Fax: (909) 533-2263 1490 N D ST SAN BERNARDINO,CA 92405236 W. ORANGE SHOW RD. SUITE 112SAN BERNARDINO, CA 92408Office: (909) 440-2855Fax: (909) 533-2263www.aecmoreno.comCONVERSION OF EXISTING OFFICEBUILDING TO APARTMENT COMPLEX1Preliminary Application 22-02 Revisions(02/23/2022)MD04/01/222DP-P22-03 Application Revisions #1(07/28/2022)MD08/12/221 1 1 1 1 1 1 111 1 1 1 EXISTING STAIRS TO PROTECT IN PLACE 2 2 3 3 3 3 3 3 3 3 3 3 3 4 EXISTING PLUMBING FIXTURES TO BE DEMOLISHED 4 4 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 6 6 6 6 7 7 7 7 7 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 10 10 10 10 10 7   Packet Pg. 473 4'-6"17'-8"20'-9"15'-0"17'-8"12'-6"8'-4"16'-10"14'-10"8'-3"EXISTING ROOM CEIL.HIGH 10'-0" EXISTING ROOF(E) WOMEN'S BATH (E) STORAGE (E) ATTIC ACCESS EXISTING ROOM CEIL.HIGH 10'-0" EXISTING ROOM CEIL.HIGH 10'-0" EXISTING ROOM CEIL.HIGH10'-0" EXISTING ROOM CEIL.HIGH10'-0" EXISTING ROOF EXISTING ROOM CEIL.HIGH10'-0" EXISTING ROOM CEIL.HIGH10'-0" EXISTING ROOM CEIL.HIGH10'-0" EXISTING ROOM CEIL.HIGH10'-0" EXISTING ROOM CEIL.HIGH10'-0" EXISTING ROOM CEIL.HIGH10'-0" EXISTING ROOM CEIL.HIGH10'-0" EXISTING ROOM CEIL.HIGH10'-0" EXISTING ROOM CEIL.HIGH10'-0" EXISTING ROOM CEIL.HIGH10'-0" EXISTING ROOM CEIL.HIGH10'-0" (e) closet EXISTING ROOM CEIL.HIGH10'-0" (E) MEN'S BATH DWN DWN 20'-2"7'-6"24'-0"19'-7"13'-4"7'-9"20'-6"13'-9" 126'-6"17'-0"7'-3"14'-4"6'-1"10'-2"14'-1"9'-8"11'-0"72'-7"2'-3"10'-0"11'-9"6'-6"6'-11"11'-5"22'-10"22'-10"20'-3" 48'-10"22'-10"43'-1" A-3FLOOR PLAN &ELECTRICAL PLANSCALE: 3/16" = 1'-0" EXISTING/DEMO 2ND STORY FLOOR PLAN NO.REVISEDBYAPPROVEDBYREVISIONPROJECT ADDRESS: SHEET NO: DATE: HECTOR M. MORENO R.C.E. EXP. 06/30/22 reference:DATEAPPLICANT / DEVELOPER: PENNY MORE LLC 1490 N D ST SAN BERNARDINO,CA 92405 10-12-22C O R P O R A T I O NAEC | Moreno Corp. 236 W. ORANGE SHOW RD. SUITE 112 SAN BERNARDINO, CA 92408 Office: (909) 440-2855 Fax: (909) 533-2263 1490 N D ST SAN BERNARDINO,CA 92405236 W. ORANGE SHOW RD. SUITE 112SAN BERNARDINO, CA 92408Office: (909) 440-2855Fax: (909) 533-2263www.aecmoreno.comCONVERSION OF EXISTING OFFICEBUILDING TO APARTMENT COMPLEX1Preliminary Application 22-02 Revisions(02/23/2022)MD04/01/222DP-P22-03 Application Revisions #1(07/28/2022)MD08/12/221 2 3 6 EXISTING WALL TO PROTECT IN PLACE NUMBERED KEY NOTES EXISTING WALLS TO BE DEMOLISHED EXISTING WINDOWS TO BE REMOVED AND OPENING TO BE COVERED 5 EXISTING DOORS TO BE REMOVED 7 EXISTING PLANTERS TO PROTECT IN PLACE 8 EXISTING COLUMNS TO PROTECT IN PLACE 9 EXISTING WINDOWS TO BE REPLACED PER WINDOW SCHEDULE 10 EXISTING DOOR TO PROTECT IN PLACE EXISTING STAIRS TO PROTECT IN PLACE 4 EXISTING PLUMBING FIXTURES TO BE DEMOLISHED 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 3 3 3 3 3 3 3 3 3 4 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 6 6 6 8 8 9 9 9 9 9 9 10 10   Packet Pg. 474 2'-3"10'-4"11'-5"24'-10"22'-10"22'-10"20'-3"2'-7" 117'-4"10'-3"14'-10"13'-6"2'-2"12'-8"43'-2"9'-4"11'-0"1'-9"7'-4"16'-0"6'-9"2'-0"12'-10"2'-0"12'-10"2'-0"9'-9"2'-2"12'-0"9'-5"11'-10" 2'-0"15'-6"2'-0"12'-4"3'-2"2'-0"15'-5"2'-0"15'-10"2'-0"15'-5"2'-0"15'-5"2'-0"15'-6"2'-0"2'-0" 35'-5" 31'-10"75'-3"19'-6"7'-9"6'-7"1'-10"6'-1"1'-10"6'-6"20'-8"24'-0"24'-10"22'-10"22'-10"22'-10"31'-8"30'-1"8'-0"13'-5"9'-0"20'-10"4'-2"6'-9"7'-6" APARTMENT 1 1,000.0 SQ.FT (E) STORAGE EXISTING ELECTRICAL ROOM CEIL.HIGH 9'-0" DINING ROOM NEW KITCHEN CEIL.HIGH 9'-0" WH DINING ROOM WH FAU FAU Pantry NEW KITCHEN CEIL.HIGH 9'-0" Pantry APARTMENT 2 785.50 SQ.FT WH DINING ROOM FAU NEW KITCHEN CEIL.HIGH 9'-0" NEW LIVING ROOM CEIL.HIGH 9'-0" APARTMENT 3 679.0 SQ.FT (N)W.I.C. (N)W.I.C. APARTMENT 4 726.0 SQ.FT DINING ROOM NEW KITCHEN CEIL.HIGH 9'-0" NEW LIVING ROOM CEIL.HIGH 9'-0" NEW LIVING ROOM CEIL.HIGH 9'-0" NEW LIVING ROOM CEIL.HIGH 9'-0" NEW BEDROOM CEIL.HIGH 9'-0" NEW BEDROOM CEIL.HIGH 9'-0" NEW BEDROOM CEIL.HIGH 9'-0" NEW BEDROOM CEIL.HIGH 9'-0" NEW BEDROOM CEIL.HIGH 9'-0" NEW BEDROOM CEIL.HIGH 9'-0" WH NEW LIVING ROOM CEIL.HIGH 9'-0" DINING ROOM APARTMENT 5 830.50 SQ.FT NEW KITCHEN CEIL.HIGH 9'-0" W.I.C. WH Pantry WH DINING ROOM NEW KITCHEN CEIL.HIGH 9'-0" NEW LIVING ROOM CEIL.HIGH 9'-0" W.I.C. APARTMENT 6 794.00 SQ.FT (N)W.I.C.11'-7"10'-6"12'-0"9'-8"12'-0"10'-0"8'-0" 12'-9"9'-2"2'-0" 10'-10"8'-1"9'-1"10'-4"10'-11"24'-10"21'-2"23'-4"3'-6"3'-0"3'-6" 1 2 3 NEW SHOWER W/ 70" HIGH OF GREEN GYPSUM BOARD 3 WALLS MINIMUM. CONTROL VALVE FOR TUB/SHOWER COMBO SHALL BE OF THE PRESSURE BALANCE OR THERMOSTATIC MIXING VALVE TYPE 4 6 EXISTING STAIRS TO PROTECT IN PLACE FOR 20" CLEAR WIDTH MIN. SIZE WINDOW 2. 24" MIN. CLEAR HEIGHT 3. 5.7 SF MIN. OPENABLE AREA 1. 20" MIN. CLEAR WIDTH44" MAX AREA 41" CLEAROPENABLE MIN. SIZE WINDOW FOR 24" CLEAR HEIGHT FLOOR LEVEL OPENABLE AREA 34 1/8" CLEAR 24" CLEAREMERGENCY SCAPE / EXIT WINDOW 4. 44" MAXIMUM FINISHED SILL HEIGHT NUMBERED KEY NOTES A-41ST STORYFLOOR PLANNEW 2x4 STUDS @ 16" O.C. WALL SCHEDULE NEW 2x6 STUDS @ 16" O.C. NEW COMBO DRYER AND WASHER MACHINE ABOVE FINISH FLOOR NEW STOVE W/ KITCHEN FAN HOOD 250 CFM . CONTROL VALVE FOR SHOWERS OR TUB-SHOWERS SHALL BE ANTI-SCALDING OR THERMOSTATIC MIXING VALVE 1. MAXIMUM FLOW RATE STANDARDS: WATER CLOSETS: 2. SHOWERHEADS: KITCHEN FAUCETS: 1.28 GPF 2.0 GPM 80 PSI 1.8 GPM 60 PSI PLUMBING NOTES LAVATORIES FAUCETS:1.2 GPM 60 PSI URINALS:1.5 GPM SHOWER AND TUB-SHOWER COMBINATIONS SHALL BE PROVIDED WITH INDIVIDUAL CONTROL VALVES OF THE PRESSURE BALANCE, THERMOSTATIC, OR COMBINATION PRESSURE BALANCE/THERMOSTATIC MIXING VALVE TYPE THAT PROVIDE SCALD AND THERMAL SHOCK PROTECTION. THESE VALVES SHALL CONFORM TO ASSE 1016 OR ASME A 112.18.1/CSA 8125.1. HANDLE POSITION STOPS SHALL BE PROVIDED ON SUCH VALVES AND SHALL BE ADJUSTED PER THE MANUFACTURER'S INSTRUCTIONS TO DELIVER A MAXIMUM MIXED WATER SETTING OF 120°F. WATER HEATING THERMOSTATS SHALL NOT BE CONSIDERED A SUITABLE CONTROL FOR MEETING THIS PROVISION. (CPC 408.3). 3. DOMESTIC DISHWASHERS REQUIRE AN APPROVED DISHWASHER AIR GAP FITTING ON THE DISCHARGE SIDE OF THE DISHWASHER . LISTED AIR GAPS SHALL BE INSTALLED WITH THE FLOOD-LEVEL (FL) MARKING AT OR ABOVE THE FLOOD-LEVEL OF THE SINK OR DRAINBOARD, WHICHEVER IS HIGHER. (CPC 807.3). 4. EXISTING OPENING TO BE CLOSED 5 NEW DOUBLE SINK W/GARBAGE DISPOSAL 7 NEW KITCHEN CABINETS8 NEW REFRIGERATOR9 EXISTING 2x STUDS TO PROTECT IN PLACE EXISTING 2x STUDS TO BE REMOVED SCALE: 3/16" = 1'-0" NEW 1ST STORY FLOOR PLAN 10 EXISTING OPENING TO BE CLOSED TYP. 11 12 EXISTING GUARDRAIL TO PROTECT IN PLACE13 NO.REVISEDBYAPPROVEDBYREVISIONPROJECT ADDRESS: SHEET NO: DATE: HECTOR M. MORENO R.C.E. EXP. 06/30/22 reference:DATEAPPLICANT / DEVELOPER: PENNY MORE LLC 1490 N D ST SAN BERNARDINO,CA 92405 10-12-22C O R P O R A T I O NAEC | Moreno Corp. 236 W. ORANGE SHOW RD. SUITE 112 SAN BERNARDINO, CA 92408 Office: (909) 440-2855 Fax: (909) 533-2263 1490 N D ST SAN BERNARDINO,CA 92405236 W. ORANGE SHOW RD. SUITE 112SAN BERNARDINO, CA 92408Office: (909) 440-2855Fax: (909) 533-2263www.aecmoreno.comCONVERSION OF EXISTING OFFICEBUILDING TO APARTMENT COMPLEX1Preliminary Application 22-02 Revisions(02/23/2022)MD04/01/222DP-P22-03 Application Revisions #1(07/28/2022)MD08/12/221 1 1 1 1 1 1 1 1 1 1 1 11 1 11 1 1 1 1 1 1 1 3 3 3 2 2 2 2 2 2 H B C D D C E F D D B B B D C C B H H E E G G 1 1 D D C 1 H I I EH 1 D D C G G G CD D C 1 J DOOR A B D C SIZE 6'-0" x 6'-8" 5'-0" x 6'-8" 2'-0" x 6'-8" NEW DOOR SCHEDULE TYPE. SLIDING/CLOSET REMARKS WOOD H.C 2'-8" x 6'-8" SWING WOOD H.C. WOOD H.C E 5'-0" x 6'-8" BI-FOLDWOOD H.C.DOUBLE F 3'-0" x 6'-8"SWINGSOLID CORE G DOOR 1 SIZE 3'-0" x 6'-8" EXISTING DOOR SCHEDULE TYPE.REMARKS SWINGWOOD SOLID CORE INSTALL COMBUSTION AIR INTAKE GRILLES 12"x10" (ONE AT 12" FROM TOP AND ONE AT 12" FROM FLOOR) SWING WOOD H.C. 2'-10" x 6'-8"SWINGWOOD H.C. 2'-4" x 6'-8"WOOD H.CH SWING 4'-0" x 6'-8"WOOD H.CI BI-FOLD DOUBLE 4'-0" x 6'-8"SLIDING/CLOSETWOOD H.CJ BI-FOLD DOUBLE 1 1 EXISTING COLUMNS TO PROTECT IN PLACE 2 22 2 2 22 2 2 EXISTING DOORS TO PROTECT IN PLACE 3 3 3 3 3 3 3 3 3 EXISTING WINDOWS TO PROTECT IN PLACE 44 4 4 4 4 EXISTING WINDOWS TO BE REPLACED PER WINDOW SCHEDULE 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 7 7 7 7 7 7 8 9 8 9 9 9 9 1010 10 10 10 10 10 10 10 11 11 11 11 11 12 12 12 12 12 12 EXISTING PLANTERS TO PROTECT IN PLACE14 14 14 14 14 2 PROPOSED COMMON OPEN SPACE (1,057 SF. ) 3'-0" x 5'-0" WINDOW 2 SIZE 1 DUAL GLASS REMARKSTYPE. NEW WINDOW SCHEDULE 2'-10" x 5'-0"DUAL GLASS UP AND DWN DESCRIPTION 3 2'-0" x 1'-0"DUAL GLASSAL. SLD.TEMPERED GLASS UP AND DWN 2 2 15 PROPOSED OPEN SPACE OUTLINE (1,057 SF) 15 15 16 PROPOSED PICNIC TABLE & BENCHES 16 16 1 1 1   Packet Pg. 475 4'-6"17'-8"20'-9"15'-0"17'-8"8'-4"16'-10"10'-7"12'-6"12'-6"9'-0"10'-0"10'-8"8'-6"7'-9"14'-10"13'-9" 126'-6"11'-0"6'-0"10'-6"10'-6"11'-3"9'-8"11'-0"72'-7"2'-3"10'-4"8'-7"16'-1"8'-9"22'-10"22'-10"20'-3" 48'-10"22'-10"43'-1" EXISTING ROOF (E) STORAGE (E) ATTIC ACCESS EXISTING ROOF DWN DWN DINING ROOM NEW BEDROOM CEIL.HIGH 9'-0" NEW BEDROOM CEIL.HIGH 9'-0" NEW LIVING ROOM CEIL.HIGH 9'-0" APARTMENT 7 905.00 SQ.FT WH NEW KITCHEN CEIL.HIGH 9'-0" Pantry WH DINING ROOM NEW KITCHEN CEIL.HIGH 9'-0" NEW LIVING ROOM CEIL.HIGH 9'-0" W.I.C. APARTMENT 12 794.00 SQ.FT NEW BEDROOM CEIL.HIGH 9'-0" NEW BEDROOM CEIL.HIGH 9'-0" DINING ROOM NEW KITCHEN CEIL.HIGH 9'-0" NEW LIVING ROOM CEIL.HIGH 9'-0" WH APARTMENT 8 926.00 SQ.FT APARTMENT 9 711.00 SQ.FT NEW BEDROOM CEIL.HIGH 9'-0" NEW LIVING ROOM CEIL.HIGH 9'-0" WH DINING ROOM W.I.C. NEW KITCHEN CEIL.HIGH 9'-0" APARTMENT 11 971.00 SQ.FT APARTMENT 10 865.50 SQ.FT NEW BEDROOM CEIL.HIGH 9'-0" WH NEW LIVING ROOM CEIL.HIGH 9'-0" DINING ROOM NEW BEDROOM CEIL.HIGH 9'-0" NEW BEDROOM CEIL.HIGH 9'-0" W.I.C. NEW LIVING ROOM CEIL.HIGH 9'-0" WH DINING ROOMNEW KITCHEN CEIL.HIGH 9'-0" NEW BEDROOM CEIL.HIGH 9'-0" laundry 2'-10"2'-8"5'-8"8'-6"5'-2"12'-6"2'-4"5'-4"23'-1"17'-0"24'-5"10'-6"20'-8"FOR 20" CLEAR WIDTH MIN. SIZE WINDOW 2. 24" MIN. CLEAR HEIGHT 3. 5.7 SF MIN. OPENABLE AREA 1. 20" MIN. CLEAR WIDTH44" MAX AREA 41" CLEAROPENABLE MIN. SIZE WINDOW FOR 24" CLEAR HEIGHT FLOOR LEVEL OPENABLE AREA 34 1/8" CLEAR 24" CLEAREMERGENCY SCAPE / EXIT WINDOW 4. 44" MAXIMUM FINISHED SILL HEIGHT A-5 2ND STORYFLOOR PLANNEW 2x4 STUDS @ 16" O.C. WALL SCHEDULE NEW 2x6 STUDS @ 16" O.C. ABOVE FINISH FLOOR CONTROL VALVE FOR SHOWERS OR TUB-SHOWERS SHALL BE ANTI-SCALDING OR THERMOSTATIC MIXING VALVE 1. MAXIMUM FLOW RATE STANDARDS: WATER CLOSETS: 2. SHOWERHEADS: KITCHEN FAUCETS: 1.28 GPF 2.0 GPM 80 PSI 1.8 GPM 60 PSI PLUMBING NOTES LAVATORIES FAUCETS:1.2 GPM 60 PSI URINALS:1.5 GPM SHOWER AND TUB-SHOWER COMBINATIONS SHALL BE PROVIDED WITH INDIVIDUAL CONTROL VALVES OF THE PRESSURE BALANCE, THERMOSTATIC, OR COMBINATION PRESSURE BALANCE/THERMOSTATIC MIXING VALVE TYPE THAT PROVIDE SCALD AND THERMAL SHOCK PROTECTION. THESE VALVES SHALL CONFORM TO ASSE 1016 OR ASME A 112.18.1/CSA 8125.1. HANDLE POSITION STOPS SHALL BE PROVIDED ON SUCH VALVES AND SHALL BE ADJUSTED PER THE MANUFACTURER'S INSTRUCTIONS TO DELIVER A MAXIMUM MIXED WATER SETTING OF 120°F. WATER HEATING THERMOSTATS SHALL NOT BE CONSIDERED A SUITABLE CONTROL FOR MEETING THIS PROVISION. (CPC 408.3). 3. DOMESTIC DISHWASHERS REQUIRE AN APPROVED DISHWASHER AIR GAP FITTING ON THE DISCHARGE SIDE OF THE DISHWASHER . LISTED AIR GAPS SHALL BE INSTALLED WITH THE FLOOD-LEVEL (FL) MARKING AT OR ABOVE THE FLOOD-LEVEL OF THE SINK OR DRAINBOARD, WHICHEVER IS HIGHER. (CPC 807.3). 4. EXISTING OPENING TO BE CLOSED EXISTING 2x STUDS TO PROTECT IN PLACE EXISTING 2x STUDS TO BE REMOVED SCALE: 3/16" = 1'-0" NEW 2ND STORY FLOOR PLAN NO.REVISEDBYAPPROVEDBYREVISIONPROJECT ADDRESS: SHEET NO: DATE: HECTOR M. MORENO R.C.E. EXP. 06/30/22 reference:DATEAPPLICANT / DEVELOPER: PENNY MORE LLC 1490 N D ST SAN BERNARDINO,CA 92405 10-12-22C O R P O R A T I O NAEC | Moreno Corp. 236 W. ORANGE SHOW RD. SUITE 112 SAN BERNARDINO, CA 92408 Office: (909) 440-2855 Fax: (909) 533-2263 1490 N D ST SAN BERNARDINO,CA 92405236 W. ORANGE SHOW RD. SUITE 112SAN BERNARDINO, CA 92408Office: (909) 440-2855Fax: (909) 533-2263www.aecmoreno.comCONVERSION OF EXISTING OFFICEBUILDING TO APARTMENT COMPLEX1Preliminary Application 22-02 Revisions(02/23/2022)MD04/01/222DP-P22-03 Application Revisions #1(07/28/2022)MD08/12/22DOOR A B D C SIZE 6'-0" x 6'-8" 5'-0" x 6'-8" 2'-0" x 6'-8" NEW DOOR SCHEDULE TYPE. SLIDING/CLOSET REMARKS WOOD H.C 2'-8" x 6'-8" SWING WOOD H.C. WOOD H.C E 5'-0" x 6'-8" BI-FOLDWOOD H.C.DOUBLE F 3'-0" x 6'-8"SWINGSOLID CORE G DOOR 1 SIZE 3'-0" x 6'-8" EXISTING DOOR SCHEDULE TYPE.REMARKS SWINGWOOD SOLID CORE 3'-0" x 5'-0" WINDOW 2 SIZE 1 DUAL GLASS REMARKSTYPE. NEW WINDOW SCHEDULE 2'-10" x 5'-0"DUAL GLASS UP AND DWN DESCRIPTION 3 2'-0" x 1'-0"DUAL GLASSAL. SLD.TEMPERED GLASS UP AND DWN INSTALL COMBUSTION AIR INTAKE GRILLES 12"x10" (ONE AT 12" FROM TOP AND ONE AT 12" FROM FLOOR) SWING WOOD H.C. 2'-10" x 6'-8"SWINGWOOD H.C. 2'-4" x 6'-8"WOOD H.CH SWING 4'-0" x 6'-8"WOOD H.CI BI-FOLD DOUBLE 4'-0" x 6'-8"SLIDING/CLOSETWOOD H.CJ 1 C 1 1 C C C C C C C D D D D D D D D D D D D E E I II E II F F F J G G G G G G J H H H BI-FOLD DOUBLE A 1 1 1 1 1 11 1 1 1 1 11111111111 1 3 3 3 3 3 1 1 1 1 1 1 1 1 2 3 NEW SHOWER W/ 70" HIGH OF GREEN GYPSUM BOARD 3 WALLS MINIMUM. CONTROL VALVE FOR TUB/SHOWER COMBO SHALL BE OF THE PRESSURE BALANCE OR THERMOSTATIC MIXING VALVE TYPE 4 6 EXISTING STAIRS TO PROTECT IN PLACE NUMBERED KEY NOTES NEW COMBO DRYER AND WASHER MACHINE NEW STOVE W/ KITCHEN FAN HOOD 250 CFM . 5 NEW DOUBLE SINK W/GARBAGE DISPOSAL 7 NEW KITCHEN CABINETS8 NEW REFRIGERATOR9 10 EXISTING OPENING TO BE CLOSED TYP. 11 12 EXISTING GUARDRAIL TO PROTECT IN PLACE13 EXISTING COLUMNS TO PROTECT IN PLACE EXISTING DOORS TO PROTECT IN PLACE EXISTING WINDOWS TO PROTECT IN PLACE EXISTING WINDOWS TO BE REPLACED PER WINDOW SCHEDULE 1 1 13 13 13 13 13 1 2 2 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 7 7 7 7 7 7 8 8 8 8 9 9 9 9 9 9 10 10 10 10 1 10 10 10 10 10 10 10 10 10 1010 10 10 11 11 11 11 11 11 12 12 10 12 12 12 12 EXISTING PLANTERS TO PROTECT IN PLACE14   Packet Pg. 476 NUMBERED KEY NOTES 1 2 NEW 7/8" EXTERIOR STUCCO PLASTER TO MATCH EXISTING ICBO ER-1025 (PROVIDE 2-LAYER OF GRADE D PAPER UNDER STUCCO WHEN OVER WOOD SHEATING) 4 EXISTING BRICK SIDING TO PROTECT IN PLACE 5 7 8 9 10 11 12 13 EXISTING ROOF TILE TO PROTECT IN PLACE ELEVATIONSA-6 EXISTING PLANTERS TO PROTECT IN PLACE EXISTING STUCCO TO PROTECT IN PLACE EXISTING COLUMNS TO PROTECT IN PLACE NO.REVISEDBYAPPROVEDBYREVISIONPROJECT ADDRESS: SHEET NO: DATE: HECTOR M. MORENO R.C.E. EXP. 06/30/22 reference:DATEAPPLICANT / DEVELOPER: PENNY MORE LLC 1490 N D ST SAN BERNARDINO,CA 92405 10-12-22C O R P O R A T I O NAEC | Moreno Corp. 236 W. ORANGE SHOW RD. SUITE 112 SAN BERNARDINO, CA 92408 Office: (909) 440-2855 Fax: (909) 533-2263 1490 N D ST SAN BERNARDINO,CA 92405236 W. ORANGE SHOW RD. SUITE 112SAN BERNARDINO, CA 92408Office: (909) 440-2855Fax: (909) 533-2263www.aecmoreno.comCONVERSION OF EXISTING OFFICEBUILDING TO APARTMENT COMPLEX1Preliminary Application 22-02 Revisions(02/23/2022)MD04/01/222DP-P22-03 Application Revisions #1(07/28/2022)MD08/12/223/16"=1'-0" FRONT ELEVATION1 1 3 EXISTING WOOD TRIM AND SIDING TO PROTECT IN PLACE EXISTING WINDOWS TO PROTECT IN PLACE NEW WOOD SIDING TO MATCH EXISTING NEW WINDOWS PER WINDOW SCHEDULE 3/16"=1'-0" BACK ELEVATION2 11 1 1 222 2 33 3 3 33 3 3 1 4444 4 EXISTING DOOR/GATE TO PROTECT IN PLACE 5 3 6 EXISTING WROUGHT IRON FENCE TO PROTECT IN PLACE 6 EXISTING WINDOW TO BE REMOVED AND CLOSED OUT 77 77 7 8 8 899 99 9 10 10 10 10 1111 12 12 12 12 12 12 13 14 13 14 14 14 14 14 14 13 13 14 NEW WINDOW TO REPLACE EXISTING WINDOW 13 13 13 13 EXISTING BUILDING FACADE WILL BE PROTECTED IN PLACE, WINDOWS WILL BE REPLACED PER WINDOW SCHEDULE 13   Packet Pg. 477 25'-0"3/16"=1'-0" RIGHT ELEVATION3 ELEVATIONSA-7NO.REVISEDBYAPPROVEDBYREVISIONPROJECT ADDRESS: SHEET NO: DATE: HECTOR M. MORENO R.C.E. EXP. 06/30/22 reference:DATEAPPLICANT / DEVELOPER: PENNY MORE LLC 1490 N D ST SAN BERNARDINO,CA 92405 10-12-22C O R P O R A T I O NAEC | Moreno Corp. 236 W. ORANGE SHOW RD. SUITE 112 SAN BERNARDINO, CA 92408 Office: (909) 440-2855 Fax: (909) 533-2263 1490 N D ST SAN BERNARDINO,CA 92405236 W. ORANGE SHOW RD. SUITE 112SAN BERNARDINO, CA 92408Office: (909) 440-2855Fax: (909) 533-2263www.aecmoreno.comCONVERSION OF EXISTING OFFICEBUILDING TO APARTMENT COMPLEX1Preliminary Application 22-02 Revisions(02/23/2022)MD04/01/222DP-P22-03 Application Revisions #1(07/28/2022)MD08/12/223/16"=1'-0" BACK ELEVATION4 NUMBERED KEY NOTES 1 2 NEW 7/8" EXTERIOR STUCCO PLASTER TO MATCH EXISTING ICBO ER-1025 (PROVIDE 2-LAYER OF GRADE D PAPER UNDER STUCCO WHEN OVER WOOD SHEATING) 4 EXISTING BRICK SIDING TO PROTECT IN PLACE 5 7 8 9 10 11 12 13 EXISTING ROOF TILE TO PROTECT IN PLACE EXISTING PLANTERS TO PROTECT IN PLACE EXISTING STUCCO TO PROTECT IN PLACE EXISTING COLUMNS TO PROTECT IN PLACE 3 EXISTING WOOD TRIM AND SIDING TO PROTECT IN PLACE EXISTING WINDOWS TO PROTECT IN PLACE NEW WOOD SIDING TO MATCH EXISTING NEW WINDOWS PER WINDOW SCHEDULE EXISTING DOOR/GATE TO PROTECT IN PLACE 6 EXISTING WROUGHT IRON FENCE TO PROTECT IN PLACE EXISTING WINDOW TO BE REMOVED AND CLOSED OUT 11 1 1 111 2 22 3 3 3 33 33 34 45 7 7 7 7 7 7 7 7 7 9 9 9 7 11 1111 11 2 2 12 12 12 12 12 14 NEW WINDOW TO REPLACE EXISTING WINDOW 1313 13 1414 1414 14 14 EXISTING BUILDING FACADE WILL BE PROTECTED IN PLACE, WINDOWS WILL BE REPLACED PER WINDOW SCHEDULE   Packet Pg. 478 COLOR ELEVATIONSA-8NO.REVISEDBYAPPROVEDBYREVISIONPROJECT ADDRESS: SHEET NO: DATE: HECTOR M. MORENO R.C.E. EXP. 06/30/22 reference:DATEAPPLICANT / DEVELOPER: PENNY MORE LLC 1490 N D ST SAN BERNARDINO,CA 92405 10-12-22C O R P O R A T I O NAEC | Moreno Corp. 236 W. ORANGE SHOW RD. SUITE 112 SAN BERNARDINO, CA 92408 Office: (909) 440-2855 Fax: (909) 533-2263 1490 N D ST SAN BERNARDINO,CA 92405236 W. ORANGE SHOW RD. SUITE 112SAN BERNARDINO, CA 92408Office: (909) 440-2855Fax: (909) 533-2263www.aecmoreno.comCONVERSION OF EXISTING OFFICEBUILDING TO APARTMENT COMPLEX1Preliminary Application 22-02 Revisions(02/23/2022)MD04/01/222DP-P22-03 Application Revisions #1(07/28/2022)MD08/12/22   Packet Pg. 479 COLOR ELEVATIONSA-9NO.REVISEDBYAPPROVEDBYREVISIONPROJECT ADDRESS: SHEET NO: DATE: HECTOR M. MORENO R.C.E. EXP. 06/30/22 reference:DATEAPPLICANT / DEVELOPER: PENNY MORE LLC 1490 N D ST SAN BERNARDINO,CA 92405 10-12-22C O R P O R A T I O NAEC | Moreno Corp. 236 W. ORANGE SHOW RD. SUITE 112 SAN BERNARDINO, CA 92408 Office: (909) 440-2855 Fax: (909) 533-2263 1490 N D ST SAN BERNARDINO,CA 92405236 W. ORANGE SHOW RD. SUITE 112SAN BERNARDINO, CA 92408Office: (909) 440-2855Fax: (909) 533-2263www.aecmoreno.comCONVERSION OF EXISTING OFFICEBUILDING TO APARTMENT COMPLEX1Preliminary Application 22-02 Revisions(02/23/2022)MD04/01/222DP-P22-03 Application Revisions #1(07/28/2022)MD08/12/22   Packet Pg. 480 RENDERA-10NO.REVISEDBYAPPROVEDBYREVISIONPROJECT ADDRESS: SHEET NO: DATE: HECTOR M. MORENO R.C.E. EXP. 06/30/22 reference:DATEAPPLICANT / DEVELOPER: PENNY MORE LLC 1490 N D ST SAN BERNARDINO,CA 92405 10-12-22C O R P O R A T I O NAEC | Moreno Corp. 236 W. ORANGE SHOW RD. SUITE 112 SAN BERNARDINO, CA 92408 Office: (909) 440-2855 Fax: (909) 533-2263 1490 N D ST SAN BERNARDINO,CA 92405236 W. ORANGE SHOW RD. SUITE 112SAN BERNARDINO, CA 92408Office: (909) 440-2855Fax: (909) 533-2263www.aecmoreno.comCONVERSION OF EXISTING OFFICEBUILDING TO APARTMENT COMPLEX1Preliminary Application 22-02 Revisions(02/23/2022)MD04/01/222DP-P22-03 Application Revisions #1(07/28/2022)MD08/12/22   Packet Pg. 481 COLOR & MATERIALSAMPLE BOARDA-11NO.REVISEDBYAPPROVEDBYREVISIONPROJECT ADDRESS: SHEET NO: DATE: HECTOR M. MORENO R.C.E. EXP. 06/30/22 reference:DATEAPPLICANT / DEVELOPER: PENNY MORE LLC 1490 N D ST SAN BERNARDINO,CA 92405 10-12-22C O R P O R A T I O NAEC | Moreno Corp. 236 W. ORANGE SHOW RD. SUITE 112 SAN BERNARDINO, CA 92408 Office: (909) 440-2855 Fax: (909) 533-2263 1490 N D ST SAN BERNARDINO,CA 92405236 W. ORANGE SHOW RD. SUITE 112SAN BERNARDINO, CA 92408Office: (909) 440-2855Fax: (909) 533-2263www.aecmoreno.comCONVERSION OF EXISTING OFFICEBUILDING TO APARTMENT COMPLEX1Preliminary Application 22-02 Revisions(02/23/2022)MD04/01/222DP-P22-03 Application Revisions #1(07/28/2022)MD08/12/22COLORS & MATERIALS 1 2 3 EXISTING WOOD TRIMMING TO PROTECT IN PLACE AND TO BE PAINTED SHERWIN WILLIAMS: COLOR SW 7076 CYBERSPACE SYM.DESCRIPTION COLOR 4 1 EXISTING BRICK SIDING TO PROTECT IN PLACE TO BE PAINTED SHERWIN WILLIAMS: COLOR SW 7757 HIGH REFLECTIVE WHITE 1 1 1 2 24 4 4 EXISTING FASCIA TO PROTECT IN PLACE TO BE PAINTED SHERWIN WILLIAMS: COLOR SW 6258 TRICOM BLACK3 3 3 3 EXISTING STUCCO SIDING TO PROTECT IN PLACE TO BE PAINTED SHERWIN WILLIAMS: COLOR SW 7757 HIGH REFLECTIVE WHITE 2 1 4 44 2   Packet Pg. 482 A-12NO.REVISEDBYAPPROVEDBYREVISIONPROJECT ADDRESS: SHEET NO: DATE: HECTOR M. MORENO R.C.E. EXP. 06/30/22 reference:DATEAPPLICANT / DEVELOPER: PENNY MORE LLC 1490 N D ST SAN BERNARDINO,CA 92405 10-12-22C O R P O R A T I O NAEC | Moreno Corp. 236 W. ORANGE SHOW RD. SUITE 112 SAN BERNARDINO, CA 92408 Office: (909) 440-2855 Fax: (909) 533-2263 1490 N D ST SAN BERNARDINO,CA 92405236 W. ORANGE SHOW RD. SUITE 112SAN BERNARDINO, CA 92408Office: (909) 440-2855Fax: (909) 533-2263www.aecmoreno.comCONVERSION OF EXISTING OFFICEBUILDING TO APARTMENT COMPLEX1Preliminary Application 22-02 Revisions(02/23/2022)MD04/01/222DP-P22-03 Application Revisions #1(07/28/2022)MD08/12/22COLORS & MATERIALS 1 2 3 EXISTING WOOD TRIMMING TO PROTECT IN PLACE AND TO BE PAINTED SHERWIN WILLIAMS: COLOR SW 7076 CYBERSPACE SYM.DESCRIPTION COLOR 4 EXISTING BRICK SIDING TO PROTECT IN PLACE TO BE PAINTED SHERWIN WILLIAMS: COLOR SW 7757 HIGH REFLECTIVE WHITE 1 EXISTING FASCIA TO PROTECT IN PLACE TO BE PAINTED SHERWIN WILLIAMS: COLOR SW 6258 TRICOM BLACK EXISTING STUCCO SIDING TO PROTECT IN PLACE TO BE PAINTED SHERWIN WILLIAMS: COLOR SW 7757 HIGH REFLECTIVE WHITE 1 11 1 1 1 1 2 2 3 3 3 4 4 4 4 4 COLOR & MATERIALSAMPLE BOARD   Packet Pg. 483 5.00'4.00'9.83'2.75'30.00'6.00'NOPARKING 15.00' 10.00'18.00'25.50'18.00'18.00'9.00'25.50'20.00'16.32'15.00'8.00'8.00'12.27'5.00'4.00'4.00'26.27'26.06'3.00'4.00'9.00'Ligustrum japonicum 'Texanum'Senecio mandraliscae `Blue Chalk Sticks`Callistemon viminalis 'Little John'EXISTING LANDSCAPEPROTECT IN PLACEEXISTING MATUREPINE TREE (x3)PINUS CANARIENSIS.PROTECT IN PLACEEXISTING MATUREQUEEN PALMSYGRUSROMANZOFFIANAPROTECT IN PLACEEXISTING MATUREQUEEN PALMSYGRUSROMANZOFFIANAPROTECT IN PLACEEXISTING PURPLEPLUM TREEPRUNUSCERASIFERAPROTECT IN PLACEEXISTING MATUREPINE TREE (x3)PINUS CANARIENSIS.PROTECT IN PLACEEXISTING PURPLEPLUM TREEPRUNUSCERASIFERAPROTECT IN PLACEEXISTING PURPLEPLUM TREEPRUNUSCERASIFERAPROTECT IN PLACEEXISTING PURPLEPLUM TREEPRUNUSCERASIFERAPROTECT IN PLACEEXISTING PURPLEPLUM TREEPRUNUSCERASIFERAPROTECT IN PLACEEXISTING MATUREQUEEN PALMSYGRUSROMANZOFFIANAPROTECT IN PLACEEXISTING MATUREQUEEN PALMSYGRUSROMANZOFFIANAPROTECT IN PLACEEXISTING LANDSCAPEPROTECT IN PLACEPLANT SCHEDULEFILE:I:\00_MLAS\2022\22.02_AEC_1490 N D ST-SAN BERNARDINO\22.02-CONCEPTUAL LANDSCAPE PLAN-8-12-22.DWG 9/13/2022 10:28:14 AM DATEREVISIONSNO.PROJECT ADDRESS:OF 1APPLICANT:JOB NO.SHEET NUMBER SEAL - DESIGND ST.APARTMENTCOMPLEXTHIS DRAWING, AS AN INSTRUMENT OF SERVICE, IS THEPROPERTY OF THE LANDSCAPE ARCHITECT AND MAY NOTBE REPRODUCED WITHOUT THE LANDSCAPE ARCHITECT'SPERMISSION AND UNLESS THE REPRODUCTION CARRIESTHE LANDSCAPE ARCHITECT'S NAME. ALL DESIGN ANDOTHER INFORMATION SHOWN ON THE DRAWING ARE FORUSE ON THE SPECIFIED PROJECT ONLY AND SHALL NOT BEUSED OTHERWISE WITHOUT WRITTEN PERMISSION FROMTHE LANDSCAPE ARCHITECT.WRITTEN DIMENSIONS SHALL HAVE PRECEDENCE OVERSCALED DIMENSIONS. CONTRACTORS SHALL VERIFY ANDBE RESPONSIBLE FOR ALL DIMENSIONS AND CONDITIONSON THE JOB AND THE LANDSCAPE ARCHITECT IS TO BEINFORMED OF ANY VARIATIONS FROM THE DIMENSIONSAND CONDITIONS SHOWN ON THE DRAWINGS. EXISTINGCONDITIONS AND LOCATIONS OF UTILITIES HAVE NOT BEENVERIFIED INDEPENDENTLY. IT SHALL BE THERESPONSIBILITY OF THE CONTRACTOR BEFORE BEGINNINGWORK TO DETERMINE THE EXACT LOCATION OF ALLEASEMENTS AND EXISTING UTILITIES. THE CONTRACTORSHALL BE RESPONSIBLE FOR SECURING ALL PERMITS ANDENGINEERING REQUIRED NOT INCLUDED IN THESEDRAWINGS. CIVIL, STRUCTURAL AND MECHANICALENGINEERING BY OTHERS. GRADING AND DRAINAGE BYOTHERS.SHOP DRAWINGS MUST BE SUBMITTED TO THE LANDSCAPEARCHITECT FOR REVIEW BEFORE PROCEEDING WITHFABRICATION.DATE:SCALE:DRAWN:JMPER PLAN09-13-2022SHEET TITLEPLAN SET22.02LANDSCAPE ARCHITECTUREPLANS FOR:CONCEPTUAL LANDSCAPE PLAN09-13-2022MACIAS LANDSCAPE ARCHITECURE STUDIO, INC.M L A SM L A SPENNY MORE LLC.1490 N. D STSAN BERNARDINO, CA 924051490 N. D ST.SAN BERNARDINO, CA 92405CONCEPTUAL LANDSCAPE PLANCONVERSION OF EXISTING OFFICE BUILDING TOAPARTMENT COMPLEXAPN:0145-181-13,0145-181-03 & 0145-181-04KEY NOTES12345678PARKING STRIPING STALL (9'-0"x18'-0")ACCESSIBLE ROUTE FROM PUBLIC STREETEXISTING PARKING LOT LIGHT POST TO PROTECT IN PLACE9EXISTING DRIVEWAY APPROACH TO TO BE MODIFIED TO MEET CITYSTANDARDS NO. 204 TYPE II, PLEASE SEE STREET IMPROVEMENT PLANSNEW PROPOSED TRASH ENCLOSURE ( 8'X15'- 2- 4 CY.) PER CITY OFSAN BERNARDINO STANDARD 508EXISTING CONCRETE WALKWAY TO PROTECT IN PLACEEXISTING LANDSCAPE TO PROTECT IN PLACE TO PROTECT IN PLACEINTEGRATED WASTE'S TURNING TEMPLATE, TO DO 180° TURN AND BACKUP TO PROPOSED TRASH ENCLOSURE LOCATION10EXISTING PALM TRESS TO PROTECT IN PLACE11EXISTING PLANTER IN COURTYARD TO PROTECT IN PLACE12EXISTING WROUGHT IRON SLIDING GATE TO PROTECT IN PLACE13EXISTING WROUGHT MAN GATE TO PROTECT IN PLACE14EXISTING CMU BLOCK FENCE TO PROTECT IN PLACE15EXISTING WROUGHT IRON FENCE WITH PILASTERS TO PROTECT IN PLACE16CURB AND GUTTER TO PROTECT IN PLACE17EXISTING SIDEWALK TO PROTECT IN PLACE1ST FLOOR COURTYARD OUTLINE18EXISTING GAS METER LOCATIONS19EXISTING AC PAVEMENT DRIVEWAY TO PROTECT IN PLACE2021PROPOSED OPEN SPACE OUTLINE (1,057 SF)221ACCESSIBLE PARKING SIGN TYP. 70" SQ. ON POLE (ADDITIONALSIGN STATING: VAN ACCESSIBLE IF VAN).AN ADDITIONAL SIGNBELOW THE INT. SYMBOL OF ACCESSIBILITY SHALL STATE "MINIMUM FINE $250.00" SEE DETAIL R ON SHEET DS-1.23 VAN ACCESSIBLE PARKING (9'x19')PROPOSED ACCESSIBLE PATH OF TRAVEL 5% MAX SLOPE AND A MAX.CROSS SLOPE OF 2%NOT IN USE24NEW CURB & GUTTER PER STREET IMPROVEMENT PLANS25PROPOSED LANDSCAPE26NOT IN USE2728TYPICAL PAVEMENT SYMBOL 36" SQUARE WHEELCHAIR W/ OCCUPANT INWHITE ON BLUE BACKGROUND.29PROPOSED CMU BLOCK WALL TO MATCH EXISTING30EXISTING ELECTRICAL TRANSFORMER TO PROTECT IN PLACE31PROPOSED STAIRS32PROPOSED WROUGHT IRON FENCE33PROPOSED COLUMN34PROPOSED CURB21D ST.CL11 23TYP.3TYP.3TYP.456666667777778888111212131314141415151515161616161717171818GGGGGGGGGG191920202020EXISTING PROPERTY LINE 100.00'EXISTING PROPERTY LINE 50.00'EXISTING PROPERTY LINE 48.18.00'EXISTING PROPERTY LINE 100.00'EXISTING PROPERTY LINE 50.00'EXISTING PROPERTY LINE 48.18.00'EXISTING PROPERTY LINE 145.00'EXISTING PROPERTY LINE 145.00'EXISTING PROPERTY LINE 145.00' EXISTING PROPERTY LINE 145.00'2222DEDICATION12123215TH ST.CLCLMAGNOLIA AVE.CLCL4425252626282930323334341131312144 SF202626343434349991010141415291011212222222&nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;484   Packet Pg. 485   Packet Pg. 486   Packet Pg. 487   Packet Pg. 488   Packet Pg. 489   Packet Pg. 490   Packet Pg. 491   Packet Pg. 492   Packet Pg. 493   Packet Pg. 494   Packet Pg. 495   Packet Pg. 496   Packet Pg. 497   Packet Pg. 498   Packet Pg. 499   Packet Pg. 500   Packet Pg. 501   Packet Pg. 502   Packet Pg. 503   Packet Pg. 504   Packet Pg. 505   Packet Pg. 506   Packet Pg. 507   Packet Pg. 508   Packet Pg. 509   Packet Pg. 510   Packet Pg. 511   Packet Pg. 512   Packet Pg. 513   Packet Pg. 514   Packet Pg. 515   Packet Pg. 516   Packet Pg. 517   Packet Pg. 518   Packet Pg. 519   Packet Pg. 520   Packet Pg. 521 2 2 4 9 CITY OF SAN BERNARDINO PLANNING DIVISION PROJECT: DP-P 22-03 AERIAL MAP HEARING DATE: MARCH 15, 2023 NORTH ATTACHMENT 4 –AERIAL MAP PROJECT SITE   Packet Pg. 522 2 2 4 5 CITY OF SAN BERNARDINO PLANNING DIVISION PROJECT: DP-P 22-03 LOCATION/ZONING MAP HEARING DATE: MARCH 15, 2023 NORTH ATTACHMENT 5 – LOCATION/ZONING MAP PROJECT SITE   Packet Pg. 523 Development Permit Type-P 22-03 Presented by Elizabeth Mora-Rodriguez, Senior Planner Community, Housing and Economic Development Department   Packet Pg. 524 Proposed Project: •Description : Conversion of an existing two-story office building containing approximately 9,988 square feet into an apartment complex consisting of twelve (12) multiple-family residential units •Project Address: 1490 North D Street •Project Site Size: 0.68 acres •Zoning : Commercial Office (CO) and Adaptive Reuse (AR) Overlay   Packet Pg. 525 Aerial Map: PROJECT SITE   Packet Pg. 526 Zoning Designation: PROJECT SITE   Packet Pg. 527 Analysis: PROPERTY SITE DEVELOPMENT -1st and 2nd floors - 6 residential units on each floor. -Size range from 711 to 1,000 square feet. -Bedrooms range from one (1) to two (2) bedrooms. -Independent kitchen with washer/drier availability. -A 1,057 square foot open space courtyard. -24-hour Security Cameras. ACCESS -Primary access via 2 driveways approaches on W. Magnolia Avenue -21 parking spaces with 2 accessible parking spaces   Packet Pg. 528 Existing Site:   Packet Pg. 529 Rendering:   Packet Pg. 530 Site Plan:   Packet Pg. 531 Floor Plan:   Packet Pg. 532 Floor Plan:   Packet Pg. 533 Landscape Plan:   Packet Pg. 534 Recommendation: That the Mayor and City Council: •Adopt Resolution No. 2023-XX of the Mayor and City Council of the City of San Bernardino, California approving Development Permit Type-P22-03.   Packet Pg. 535 This space for filing stamp only OR #: O R A N G E C O U N T Y R E P O R T E R ~ SINCE 1921 ~ 600 W. Santa Ana Blvd., Suite 205, Santa Ana, California 92701-4542 Telephone (714) 543-2027 / Fax (714) 542-6841 PROOF OF PUBLICATION (2015.5 C.C.P.) State of Calif ornia ) County of Orange ) ss Notice Type: Ad Description: I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the ORANGE COUNTY REPORTER, a newspaper published in the English language in the City of Santa Ana, and adjudged a newspaper of general circulation as defined by the laws of the State of California by the Superior Court of the County of Orange, State of California, under date of June 2, 1922, Case No. 13,421. That the notice, of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: Executed on: 10/10/2004 At Riverside, California I certify (or declare) under penalty of perjury that the foregoing is true and correct. Signature SAN BERNARDINO COUNTY SUN 473 E CARNEGIE DR #200, SAN BERNARDINO, CA 92408 (909) 889-9666 (909) 884-2536 SB 3675598 Jessica Nametz CITY OF SAN BERNARDINO/DEVELOPMENT SER 300 NORTH D ST #300 SAN BERNARDINO, CA - 92418 HRG - NOTICE OF HEARING NOTICE OF PUBLIC HEARING BEFORE THE MAYOR AND CITY COUNCIL I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the SAN BERNARDINO COUNTY SUN, a newspaper published in the English language in the city of SAN BERNARDINO, county of SAN BERNARDINO, and adjudged a newspaper of general circulation as defined by the laws of the State of California by the Superior Court of the County of SAN BERNARDINO, State of California, under date 06/27/1952, Case No. 73081. That the notice, of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: 03/04/2023 03/06/2023 SAN BERNARDINO !A000006249037! Email NOTI CE OF PUB LIC HEARI NG BEFORE THE MAYO R AND CITY COUNCIL Notice is hereby given that the City of San Bernardino M ayo r and City Council will hold a public hearing on Wedne sday,March 15,2023 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): DEV ELOPM ENT PERMIT TYPE- P 22-03 ---A request to allow the conversion of an existing two-story office building containing approximately 9,988 square feet into an apartment complex consisting of twelve (12)multiple-family residential units on a project site consisting of three (3)parcels containing a total of approximately 0.68 acres.The project site is located at 1490 North D Street (APN:0145- 181-03,04,and 13),within the Commercial Office (CO)zone. Environmental Determination: Categorically Exempt,pursuant to Section 15303 (New Construction or Conversion of Small Structures)and Section 15332 (In-Fill Development Projects)of the State CEQA Guidelines Applicant:Jose Ponce Owner:Penny More,LLC CONDITIO NA L USE PERMIT 21- 18 AND PUBLI C CO NVENIENCE OR NECESSITY LETTER 21-07-A request to allow the development, establishment,and operation of a market with an Alcoholic Beverage Control Type 21 (Off-Sale General) License within an existing building containing approximately 2,024 square feet on a parcel containing approximately 0.45 acres.The project site is located at 1820 West 5th Street between N.Medical Center Drive and N.Rancho Avenue,Ward 1 Environmental Determination: Statutorily Exempt,pursuant to Section 15270 (Projects Which Are Disapproved)of the State CEQA Guidelines Applicant:Zhou Hui Owner:Fernando Castro 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.   Packet Pg. 536 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. Sub mitte d:Feb ru ary 27,2023 Publis h:M arch 04,2023 (Legal Ad) Please send first proof for verification or changes by e-mail to Jessica Nametz: nametz_je@sbcity.org.Please reference ‘‘MCC Legal Ad’’on the billing and send to the City of San Bernardino,Planning Division,290 North D Street,San Bernardino,CA 92401. 3/4/23 SBS-3675598#   Packet Pg. 537 1 1 8 3 PUBLIC HEARING City of San Bernardino Request for Council Action Date:March 15, 2023 To:Honorable Mayor and City Council Members From:Charles E. McNeely, Interim City Manager; Nathan Freeman, Agency Director of Community, Housing, and Economic Development Department:Community, Housing, & Economic Development (CED) Subject:Public Hearing on Annexation No. 33 to Community Facilities District 2019-1 (Ward 3) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; and 2. Adopt Resolution No. 2023-046 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. 33); and 3. Hold a special landowner election and canvass the election; and 4. Adopt Resolution No. 2023-047 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. 33); and 5. Introduce, read by title only, and waive further reading of Ordinance No. MC- 1614 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2023-2024 to pay annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and 6. Schedule the adoption of Ordinance No. MC-1614 for April 5, 2023.   Packet Pg. 538 1 1 8 3 Background On February 1, 2023, the Mayor and City Council adopted Resolution No. 2023-026, 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 March 15, 2023, on the proposed annexation of the said territory into the community facilities district. As required by the Resolution of Intention, a boundary map was recorded on February 2, 2023, at 1:30 p.m. in Book 90 Page 95, Document No. 2023-0024667 of Maps of Assessment and Community Facilities Districts with the San Bernardino County Recorder.   The Resolution of Intention was adopted by the Mayor and City Council in response to a petition filed by the property owner of approximately 9.27 gross acres of a zoned industrial property within the City, requesting that the City assist them in annexing their property into CFD No. 2019-1 under the Mello-Roos Act. The proposed project will consist of an industrial property. The State legislature enacted the Mello-Roos Act in 1982 to assist public agencies in financing certain public improvements by either issuing tax exempt securities that are repaid by annual levy of special taxes, or to provide for the financing of on-going public services. The landowner requested the City annex into CFD No. 2019-1 to levy a special tax to cover the costs associated with the maintenance of public improvements. The public facilities and services proposed to be financed within the territory to be annexed to the District are the following: 1. Maintenance of median landscaping and other public improvements installed within the public rights-of-way; and 2. Public lighting and appurtenant facilities, including streetlights within public rights-of-way and traffic signals; and 3. Maintenance of streets, including pavement management; and 4. City and County costs associated with the setting, levying and collection of the special tax, and in the administration of the District including the contract administration and for the collection of reserve funds. The proposed area to be annexed into the CFD will be included in Tax Zone 34 and is located at the northeast intersection of Lena Road and E Norman Road, as shown in Attachment #12. The maximum annual special tax for this development has been calculated to be $2,943 per acre for FY 2023/24. This tax rate includes a Maximum Special Tax A of $2,785 per acre per year for maintenance services of public facilities and a Maximum Annual Special Tax B (Contingent) of $158 per acre per year. Special Tax B (Contingent) is for the maintenance and operation of the improvements described in Exhibit “B” attached hereto. If the Property Owners Association (POA) were to default of its obligation to maintain such improvements, the City would be able to collect funds to pay for those services. Annual   Packet Pg. 539 1 1 8 3 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. In order to annex property to CFD No. 2019-1 pursuant to the provisions of California Government Code Section 53311 et seq., the City must adopt a series of three statutorily required Resolutions and an Ordinance which are summarized below. •Resolution declaring City intent to annex territory to Community Facilities District No. 2019-1 including the boundary of the area to be annexed and the rate and method of apportionment of special taxes within the annexation area (the special tax applies only to properties within the annexation area), adopted February 1, 2023. •Resolution calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to the District. •Resolution declaring the results of the election and directing the recording of the notice of special tax lien. •Amend the Ordinance and order the levy and collection of special taxes in the District. With the adoption of the Resolutions and the first reading of the amended Ordinance, the adoption of the amended Ordinance would be scheduled for April 5, 2023. Discussion The Resolution of Intention called for a public hearing to be held on March 15, 2023 on the issue of the annexation of territory into CFD No. 2019-1. Under the Mello-Roos Act, the Mayor and City Council must hold the public hearing and consider any protests against the formation of the CFD. If the owners of one half or more of the land within the proposed boundaries of the CFD file written protests against the establishment of the CFD, the Council may not create the CFD. If a majority protest is not filed, the Mayor and City Council may adopt the resolution establishing the CFD.   Adoption of Resolution No. 2019-178 on July 17, 2019 established CFD 2019-1, pursuant to the requirements of Government Code Section 53325.1. After a CFD is formed, the Mello-Roos Act requires that for any annexations into the CFD an election be held on the question of whether the proposed special taxes should be levied. The election requires a two-thirds vote in favor of levying the special tax. The landowners filed waivers with respect to the conduct of the election pursuant to Government Code Sections 53326(a)   Packet Pg. 540 1 1 8 3 and 53327(b), meaning that the time limits and procedural requirements for conducting an election under the Mello-Roos Act do not have to be followed. Accordingly, City staff has already mailed the election ballots to the landowners and required the ballots to be returned by the close of the public hearing. If the Mayor and City Council adopt Resolution No. 2023-046, it may immediately proceed to the opening of the ballots and adopt Resolution No. 2023-047 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 $25,814 from Special Tax A to be used to pay for maintenance costs within the development. On March 1 of each year, every taxable unit for which a building permit has been issued within the boundaries of the CFD, will be subject to the special tax for the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to buildout of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be applied to property within recorded final subdivision maps, as well as other undeveloped property within the boundaries of the CFD. All costs associated with annexation into the CFD have been borne by the Developer. By annexing into the CFD, the costs of maintaining improvements located within the development will be financed through special taxes levied on the parcels within CFD No. 2019-1 and not through the City’s General Fund. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; and 2. Adopt Resolution No. 2023-046 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. 33); and 3. Hold a special landowner election and canvass the election; and 4. Adopt Resolution No. 2023-047 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. 33); and   Packet Pg. 541 1 1 8 3 5. Introduce, read by title only, and waive further reading of Ordinance No. MC- 1614 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2023-2024 to pay annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and 6. Schedule the adoption of Ordinance No. MC-1614 for April 5, 2023. Attachments Attachment 1 Resolution No. 2023-046- Resolution Calling Election Attachment 2 Exhibit A Description of Territory Attachment 3 Exhibit B Rate and Method of Apportionment Attachment 4 Exhibit C Special Election Ballot Attachment 5 Resolution No. 2023-047- Resolution Declaring Election Results Attachment 6 Exhibit A Certificate of Election Results Attachment 7 Ordinance No. MC-1614 Attachment 8 Exhibit A Description of Services Attachment 9 Exhibit B Parcel List Attachment 10 Signed Petition and Waiver Attachment 11 PowerPoint Presentation Attachment 12 Project Map Ward: Third Ward Synopsis of Previous Council Actions: June 5, 2019 Mayor and City Council adopted Resolution No. 2019-81, a Resolution of Intention to form Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello- Roos Community Facilities Act of 1982.” July 17, 2019 Resolution No. 2019-178 was adopted establishing Community Facilities District No. 2019-1; Resolution No. 2019-179 was adopted declaring election results for Community Facilities District No. 2019- 1; and first reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. August 7, 2019 Final reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance,   Packet Pg. 542 1 1 8 3 services and expenses with respect to Community Facilities District No. 2019-1. February 1, 2023 Mayor and City Council adopted Resolution No. 2023-026, 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”   Packet Pg. 543 Resolution No. 2023-046 Resolution No. 2023-046 March 15, 2023 Page 1 of 6 2 2 6 7 RESOLUTION NO. 2023-046 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. 33) 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 February 1, 2023, duly adopted Resolution No. 2023- 026 (the “Resolution of Intention”) declaring its intention to annex certain territory to CFD No. 2019-1 (Maintenance Services) and to levy a special tax within that territory to pay for certain services and setting a time and place for the public hearing on the proposed annexation for March 15, 2023; and WHEREAS, the territory proposed to be annexed is identified in a map entitled "Annexation Map No. 33 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on February 2, 2023, in Book 90 of Maps of Assessment and Community Facilities Districts at Page 95, in the office of the San Bernardino County Recorder; and   Packet Pg. 544 Resolution No. 2023-046 Resolution No. 2023-046 March 15, 2023 Page 2 of 6 2 2 6 7 WHEREAS, pursuant to the Act and the Resolution of Intention, a noticed public hearing was convened by the City Council on March 15, 2023, not earlier than the hour of 7:00 p.m. at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410, relative to the proposed annexation of said territory to CFD No. 2019-1. At the hearing, the testimony of all interested persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the March 15, 2023, meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of San Bernardino (www.sbcity.org), and outside of the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410. A copy of the Agenda will be made available upon request to the San Bernardino City Clerk's office at 909-384-5002; and WHEREAS, written protests have not been filed by fifty percent (50%) or more of the registered voters residing within the CFD No 2019-1, or by fifty percent (50%) or more of the registered voters residing within the territory to be annexed, or by the owners of one-half (1/2) or more of the area within the CFD No. 2019-1, or by the owners of one-half (1/2) or more of the territory to be annexed; and WHEREAS, the Mayor and City Council has determined that there are fewer than twelve registered voters residing in the territory proposed to be annexed to the CFD No. 2019-1 and that the qualified electors in such territory are the landowners; and WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to call an election to authorize the annexation of territory to the CFD No. 2019-1 and the levying of a special tax as described in Exhibit “A” hereto; and WHEREAS, the City Council has received a written instrument from each landowner in the territory proposed to be annexed to the CFD No. 2019-1 consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and WHEREAS, the City Clerk has concurred in the election date set forth herein. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2.Conformation of Finding in Resolution of Intention. The City Council reconfirms all of its findings and determinations as set forth in the Resolution of Intention. SECTION 3.Findings Regarding Protests. The City Council finds and determines that written protests to the proposed annexation of territory to the CFD No. 2019-1 and the levy of the   Packet Pg. 545 Resolution No. 2023-046 Resolution No. 2023-046 March 15, 2023 Page 3 of 6 2 2 6 7 special tax within such territory are insufficient in number and in amount under the Act, and the City Council hereby further orders and determines that all such protests are hereby overruled. SECTION 4.Findings Regarding Prior Proceedings. The City Council finds and determines that all prior proceedings had and taken by the City Council, with respect to the annexation of territory to CFD No. 2019-1, are valid and in conformity with the requirements of the Act. SECTION 5. Levy of Special Tax. As stated in the Resolution of Intention, except where funds are otherwise available, subject to the approval of the qualified electors of territory proposed to be annexed to CFD No. 2019-1, a special tax sufficient to pay the costs of the Services (including incidental expenses as described in the Resolution of Intention), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2019-1, will be levied annually in CFD No. 2019-1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit “B” hereto. SECTION 6. Apportionment of Tax. The special tax as apportioned to each parcel is based on the cost of making the Services available to each parcel, or other reasonable basis, and is not based on or upon the ownership of real property. SECTION 7. Tax Roll Preparation. The office of the Public Works Director, 201 North “E” Street, San Bernardino, California 92410, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax levies pursuant to Government Code section 53340.2. The Public Works Director may cause these functions to be performed by his or her deputies, assistants, or other designated agents. SECTION 8. Accountability Measures. Pursuant to Section 50075.1 of the California Government Code, the City shall create a separate account into which tax proceeds will be deposited; and the Public Works Director annually shall file a report with the City Council that will state (a) the amount of funds collected and expended and (b) the status of the Services financed in CFD No. 2019-1. SECTION 9. Special Election; Voting Procedures. The City Council hereby submits the questions of levying the special tax within the territory proposed to be annexed to the qualified electors, in accordance with and subject to the Act. The special election shall be held on March 15, 2023, and shall be conducted as follows: (a) Qualified Electors. The City Council hereby determines that the Services are necessary to meet increased demands placed upon the City as a result of development occurring within the boundaries of CFD No. 2019-1. Because fewer than twelve registered voters resided within the territory proposed to be annexed to CFD No. 2019-1 on February 8, 2023 (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to CFD No. 2019-1), the qualified electors shall be the landowners within territory proposed to be annexed, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to CFD No. 2019-1.   Packet Pg. 546 Resolution No. 2023-046 Resolution No. 2023-046 March 15, 2023 Page 4 of 6 2 2 6 7 (b) Consolidation of Elections; Combination of Propositions on Ballot. The election on the question of levying the special tax and establishing an appropriations limit for CFD No. 2019-1 shall be consolidated, and the two proportions shall be combined into a single ballot proposition for submission to the voters, as authorized by Government Code Section 53353.5. (c) Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The City Council hereby ratifies the City Clerk’s delivery of a ballot to each landowner within the territory proposed to be annexed to CFD No. 2019-1. The City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit “C”. (d) Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 7:00 p.m. on March 15, 2023. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on the election day by voters. Once all qualified electors have voted, the City Clerk may close the election. (e) Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on March 15, 2023, or when all qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election. (f) Declaration of Results. The City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statement of the results of the special election as ascertained by the canvass of the returns. SECTION 10. Filing of Resolution and Map with City Clerk. The City Council hereby directs the City Clerk to file a copy of this resolution and the annexation map of the boundaries of CFD No. 2019-1 in her office. SECTION 11. The Mayor and City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 12. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 13. Effective Date. This Resolution shall become effective immediately.   Packet Pg. 547 Resolution No. 2023-046 Resolution No. 2023-046 March 15, 2023 Page 5 of 6 2 2 6 7 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 15th day of March 2023. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 548 Resolution No. 2023-046 Resolution No. 2023-046 March 15, 2023 Page 6 of 6 2 2 6 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 Resolution No. 2023-046, adopted at a regular meeting held on the 15th day of March 2023 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2023. Genoveva Rocha, CMC, City Clerk   Packet Pg. 549 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. 33 is currently comprised of twelve (12) parcels, located within the City boundaries. The property is identified by the following San Bernardino County Assessor's Parcel Numbers (APNs). APN Owner Name 0280-171-13 GWS #7 Development LLC 0280-171-14 GWS #7 Development LLC 0280-171-15 GWS #7 Development LLC 0280-171-16 GWS #7 Development LLC 0280-171-18 GWS #7 Development LLC 0280-171-19 GWS #7 Development LLC 0280-191-05 GWS #7 Development LLC 0280-191-06 GWS #7 Development LLC 0280-191-07 GWS #7 Development LLC 0280-191-08 GWS #7 Development LLC 0280-191-09 GWS #7 Development LLC 0280-191-10 GWS #7 Development LLC   Packet Pg. 550 EXHIBIT B City of San Bernardino 1 Community Facilities District No. 2019-1 (Maintenance Services) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) OF THE CITY OF SAN BERNARDINO A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2019-1 (Maintenance Services) (the “CFD No. 2019-1” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2019, in an amount determined by the City Council of the City of San Bernardino, acting in its capacity as the legislative body of CFD No. 2019-1, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2019-1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein. A. DEFINITIONS “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator. “Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2019-1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2019-1, or any designee thereof associated with fulfilling the CFD No. 2019-1 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2019-1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees including payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2019-1 for any other administrative purposes of CFD No. 2019-1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager of the City of San Bernardino, or his or her designee. “Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the March 1 preceding the Fiscal Year in which the Special Tax is being levied, and that have not been issued a building permit on or prior to the March 1 preceding the Fiscal year in which the special tax is being levied. “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of San Bernardino. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number. “Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.   Packet Pg. 551 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. 552 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. 553 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. 554 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. 555 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. 556 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. 557 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. 558 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. 559 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. 560 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 2023-24. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2019-1. TAX ZONE 34 PM 20392 Item Description Estimated Cost 1 Landscaping $9,119 2 Lighting $6,800 3 Streets $5,677 4 Reserves $1,808 5 Admin $2,410 Total $25,814 Special Tax B Contingent Services – The estimate in the table below breaks down the costs of providing one year’s contingent maintenance services for Fiscal Year 2023-24. If necessary, these services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2019-1 Tax Zone 34. TAX ZONE 34 (CONTINGENT SERVICES) PM 20392 Item Description Estimated Cost 1 Streets $462 2 Admin $1,000 Total $1,462 TAX ZONE 34 FY 2023-24 MAXIMUM SPECIAL TAX RATES DEVELOPED PROPERTY AND APPROVED PROPERTY Land Use Category Taxable Unit Maximum Special Tax A Maximum Special Tax B Non-Residential Property Acre $2,785 $158   Packet Pg. 561 City of San Bernardino 12 Community Facilities District No. 2019-1 (Maintenance Services) TAX ZONE 34 FY 2023-24 MAXIMUM SPECIAL TAX RATES UNDEVELOPED PROPERTY Taxable Unit Maximum Special Tax A Maximum Special Tax B Acre $2,785 $158   Packet Pg. 562 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 320 21 LM 22-04 2022-23 $6,397 / Acre $0 / Acre 108 Highland, LP 21 22 LM 2021-013 2022-23 $807 / Acre $0 / Acre SBABP IV, LLC 22 23 TR 4592 2022-23 $847 / Acre $320 / Acre 1300 E Highland Ave LLC 23 24 LLA 2020-005 2022-23 $1,385 / Acre $978 / Acre Vone SB, LLC 24 25 TR 20494 2022-23 $174 / RU $17 / RU PI Properties, LLC 25 26 TR 20495 2022-23 $204 / RU $45 / RU Pacific West Company, et al. 26 To Be Determined 27 28 PM 20320 2022-23 $1,851 / Acre $292 / Acre SB Drake Central Avenue LLC 28 29 TR 17329 2023-24 $347 / RU $0 / RU Verdemont Ranch 20, LLC 29 30 LL 2022-11 2022-23 $922 / Acre $372 / Acre CIVF VI – CA1W01, LLC 30 31 PM 20143 2022-23 $2,957 / Acre $1,855 / Acre California Cajun Properties LLC 31 32 PM 20334 2023-24 $358 / Acre $94 / Acre Elliott Precision Block Co. 32 33 PM 3613, 4230 & 4250 2022-23 $1,094 / Acre $186 / Acre S.B. Universal Self Storage LLC   Packet Pg. 563 City of San Bernardino 14 Community Facilities District No. 2019-1 (Maintenance Services) Annexation Tax Zone Tract APN Fiscal Year Maximum Special Tax A Maximum Special Tax B Subdivider 33 34 PM 20392 2023-24 $2,785 / Acre $158 / Acre GWS #7 Development, LLC 34 35 CUP 21-16 2023-24 $533 / Acre $193 / Acre MLG SB Land LLC & Grandfather’s Land Holdings LLC ESCALATION OF MAXIMUM SPECIAL TAXES On each July 1, commencing on July 1, 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. 564 City of San Bernardino 15 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. 565 City of San Bernardino 16 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. 566 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;567 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;568 EXHIBIT C CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 33 (March 15, 2023) This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2019-1 (Maintenance Services) (“CFD No. 2019-1”) of the City of San Bernardino: Name of Landowner Number of Acres Owned Total Votes GWS #7 Development, LLC 9.27 10 According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of San Bernardino (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax. This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to form the CFD No. 2019-1, City of San Bernardino, County of San Bernardino, State of California. Please advise the City Clerk, at (909) 384-5002 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows: Mail Delivery: If by mail, place ballot in the return envelope provided, and mail no later than March 1, 2023, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted. Personal Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on March 15, 2023, at the Clerk’s office at 201 N. “E” Street, Bldg A, City of San Bernardino, CA 92401. However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on March 15, 2023. Very truly yours, Genoveva Rocha, CMC, City Clerk   Packet Pg. 569 TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE. OFFICIAL SPECIAL TAX BALLOT Name & Address of Property Owner: Assessor’s Parcel Number(s): GWS #7 Development, LLC Attn: Scott Morse 901 Via Piemonte, Suite 175 Ontario, CA 91764 0280-171-13, -14, -15, -16, -18, -19, 0280-191-05, -06, -07, -08, -09, -10 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 February 1, 2023 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 33 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__. Scott Morse Executive Vice President Signature Print Name Title   Packet Pg. 570 Resolution No. 2023-047 Resolution No. 2023-047 March 15, 2023 Page 1 of 3 2 2 7 1 RESOLUTION NO. 2023-047 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. 33) WHEREAS, the Mayor and City Council (the "City Council") of the City of San Bernardino (the "City") has heretofore conducted proceedings for the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (the "CFD No. 2019-1") of the City of San Bernardino, including conducting a public hearing pursuant to Section 53339.5 of the Government Code; and WHEREAS, at the conclusion of said public hearing, the Mayor and City Council adopted a Resolution No. 2023-046 calling a special election for March 15, 2023, and submitting to the qualified electors of the territory to be annexed to the CFD No. 2019-1 the question of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property as provided in the form of special election ballot; and WHEREAS, a Certificate of Election Results, attached thereto as Exhibit A, dated March 15, 2023, executed by the City Clerk (or, in the absence of the City Clerk, the Acting City Clerk – in either case, the “Clerk”), has been filed with this Council, certifying that a completed ballot has been returned to the Clerk for each landowner-voter(s) eligible to cast a ballot in said special election, with all votes cast as “Yes” votes in favor of the ballot measure, and further certifying on said basis that the special mailed-ballot election was closed; and WHEREAS, this Council has received, reviewed and hereby accepts the Clerk’s Certificate of Election Results and wishes by this resolution to declare the results of the special mailed-ballot election. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1.The above recitals are true and correct and are incorporated herein by this reference. SECTION 2.Ballot Measure. This Council hereby finds, determines, and declares that the ballot measure submitted to the qualified electors of the territory to be annexed to CFD No. 2019-1 has been passed and approved by those qualified electors in accordance with Sections 53328 and 53329 of the Government Code. SECTION 3.Annexation. This Council hereby finds, determines and declares that pursuant to Section 53339.8 of the Government Code, the Mayor and City Council is authorized to determine that the territory to be annexed has been added to and become a part of the CFD No. 2019-1 with full legal effect, and the Mayor and City Council is also authorized, pursuant to said   Packet Pg. 571 Resolution No. 2023-047 Resolution No. 2023-047 March 15, 2023 Page 2 of 3 2 2 7 1 Section 53339.8, to annually levy special taxes within the territory to be annexed to pay the costs of the services to be provided by the CFD No. 2019-1 as specified in Resolution No. 2023-026 adopted by the Mayor and City Council on February 1, 2023. The boundaries of the territory annexed are shown on the map entitled, "Annexation Map No. 33 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on February 2, 2023, in Book 90 of Maps of Assessment and Community Facilities Districts at Page 95, in the office of the San Bernardino County Recorder. SECTION 4.Notice of Special Tax Lien. Pursuant to Section 53339.8 of the Government Code and Section 3117.5 of the Streets and Highways Code, the City Clerk shall cause to be filed with the County Recorder of the County of San Bernardino an amendment of the notice of special tax lien and a map of the amended boundaries of the CFD No. 2019-1 including the annexed territory. SECTION 5. The Mayor and City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 6. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 7. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2023. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 572 Resolution No. 2023-047 Resolution No. 2023-047 March 15, 2023 Page 3 of 3 2 2 7 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. 2023-047, adopted at a regular meeting held on the 15th day of March 2023 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2023. Genoveva Rocha, CMC, City Clerk   Packet Pg. 573 EXHIBIT A CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 33 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 February 8, 2023, and on file in the office of the City Clerk of the City in connection with the City Council actions on that date. Copies of the completed waiver and consent form and the completed ballot received by me and on file in my office are attached hereto. Following such receipt, I have personally, and in the presence of all persons present, reviewed the ballot to confirm that it is properly marked and signed, and I hereby certify the result of that count to be that the ballot was cast in favor of the measure. Based upon the foregoing, all votes that were cast having been cast “Yes”, in favor of the ballot measure, the measure has therefore passed. Landowner Qualified Landowner Votes Votes Cast YES NO GWS #7 Development, LLC 10 10 I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 2023. Genoveva Rocha, CMC City Clerk City of San Bernardino By: (Attach completed copies of Waiver/Consent and Ballot)   Packet Pg. 574 Ordinance No. MC-1614 1 2 2 7 3 ORDINANCE NO. MC-1614 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING ORDINANCE NO. MC-1522 AND LEVYING SPECIAL TAXES TO BE COLLECTED DURING FISCAL YEAR 2023-2024 TO PAY THE ANNUAL COSTS OF THE MAINTENANCE AND SERVICING OF LANDSCAPING, LIGHTING, WATER QUALITY IMPROVEMENTS, GRAFFITI, STREETS, STREET SWEEPING, PARKS AND TRAIL MAINTENANCE, A RESERVE FUND FOR CAPITAL REPLACEMENT, AND ADMINISTRATIVE EXPENSES WITH RESPECT TO CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) WHEREAS, the Mayor and City Council (the "City Council") of the City of San Bernardino (the "City") has heretofore adopted Resolution No. 2019-81, stating that a community facilities district to be known as "City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services), County of San Bernardino, State of California" (the "Community Facilities District"), is proposed to be established under the provisions of Chapter 2,5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982" (the "Act"), and fixing the time and place for a public hearing on the formation of the Community Facilities District; and WHEREAS, notice was published and mailed to the owners of the property in the Community Facilities District as required by law relative to the intention of the City Council to establish the Community Facilities District and the levy of the special taxes therein to provide certain services, and of the time and place of said public hearing; and WHEREAS, on March 15, 2023, at the time and place specified in said published and mailed notice, the City Council opened and held a public hearing as required by law relative to the formation of the Community Facilities District, the levy of the special taxes therein and the provision of services by the Community Facilities District; and WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District, the levy of the special taxes and the provision of services therein were heard, and a full and fair hearing was held; and WHEREAS, subsequent to said hearing, the City Council adopted resolutions entitled "Resolution of the City Council of the City of San Bernardino Establishing Calling An Election for the Purpose of Submitting the Question of the Levy of the Proposed Special Tax to the Qualified Electors of the Proposed Community Facilities District; Authorizing the Levy of Special Taxes; and Establishing the Appropriations Limit for the Proposed Community Facilities District" (the "Resolution of Formation") which resolution established the Community Facilities District, authorized the levy of a special tax within the District, and called an election within the District on   Packet Pg. 575 Ordinance No. MC-1614 2 2 2 7 3 the proposition of levying a special tax, and establishing an appropriations limit within the District; and WHEREAS, an election was held within the Community Facilities District in which the sole eligible landowner elector approved said propositions by more than the two-thirds vote required by the Act. THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1.Findings. It is necessary that the City Council of the City of San Bernardino levy special taxes pursuant to Sections 53340 of the Government Code to provide and finance the costs of certain types of services, and related costs within the Community Facilities District, including (i) the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, and park maintenance, (ii) a reserve fund for capital replacement, and (iii) administrative expenses, all as more completely described in Exhibit "A" to Resolution No. 2019-81, attached hereto and by this reference made a part hereof. SECTION 2.Levy of Special Taxes. Special taxes shall be and are hereby levied for the Fiscal Year 2023-2024, and each Fiscal Year thereafter, on all parcels of real property within the District which are subject to taxation, which are identified in Exhibit "B" attached hereto. Pursuant to said Section 53340, such special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and Lien priority in case of delinquency as is provided for ad valorem taxes. SECTION 3.Transmittal to County. The City Clerk shall immediately following adoption of this ordinance transmit a copy hereof to the Board of Supervisors and the County Auditor of the County of San Bernardino together with a request that the special taxes as levied hereby be collected on the tax bills for the parcels identified in Exhibit "B" hereto, along with the ordinary ad valorem property taxes to be levied on and collected from the owners of said parcels. SECTION 4.Authorization to Publish Ordinance. City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California. SECTION 5.Effective Date. This ordinance shall become effective thirty (30) days after its adoption. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ____ day of _______, 2023. Helen Tran, Mayor City of San Bernardino   Packet Pg. 576 Ordinance No. MC-1614 3 2 2 7 3 Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 577 Ordinance No. MC-1614 4 2 2 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 Ordinance No. MC-1614, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the 15th day of March, 2023. Ordinance No. MC-1614 was approved, passed and adopted at a regular meeting held the ____ day of ______, 2023 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of _____, 2023. Genoveva Rocha, CMC, City Clerk   Packet Pg. 578 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. 579 EXHIBIT B COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) SPECIAL TAX FISCAL YEAR 2023-24 (Effective as of April 5, 2023) ASSESSOR'S PARCEL NUMBERS Annexation Owner Assessor's Parcel Numbers Original Formation Cauffman Family Trust 4/20/98 0142-811-01 thru -13 and 0142-811-14 Cauffman Family Trust 5/4/11 0142-041-52 1 17329, LLC 0261-031-10, -13, 0261-771-01 thru -29 and 0348-111-52 2 GWS #4 Development, LLC 0141-431-24 3 Devore Storage Facility, LLC 0266-041-39 4 TH Rancho Palma, LLC 0261-761-01 thru -65 and 0261-762-01 thru -72 5 Strata Palma, LLC 0261-182-41 6 San Bernardino Medical Center, LLC 0147-114-20 and -21 7 ICO Fund VI, LLC 0281-441-01 thru -56 and 0281-442-01 thru -55 8 TR 2600 Cajon Industrial LLC 0148-122-04 9 Central Commerce Center, LLC 0280-151-29 10 Lankershim Industrial, LP 1192-311-01 11 Prologis, LP 0137-011-01, -31, 0137-051-27, 0137-052-46, 0274-011-11, -12, - 34, -35, -42, -43 12 Dreamland Real Estate Holdings 0281-061-35 13 Magic Laundry Services, Inc. 0141-282-05 and -06 14 Ahmad Family Trust 0136-191-21 15 Gateway SB, LLC 0134-054-33, -40, -44 16 RCH-CWI Belmont, LP 0261-712-01 thru -16 17 George A. Pearson 0142-212-18 18 RGC Family Trust 0142-325-04 19 170 East 40th Street, LLC 0154-242-22 and -23 20 108 Highland, LP 0150-221-78 21 SBABP IV, LLC 0136-371-36, -37, -40, -43 22 1300 E Highland Ave LLC 0150-471-04, -05, -06, -07, -08 23 Vone SB, LLC 0272-161-17 and -18 24 PI Properties, LLC 0143-191-59 25 Pacific West Company, Chenmei Cheng, Ann C. Lau, and Hanhsing Li 0285-211-05, -21, -22, -23, -25   Packet Pg. 580 Annexation Owner Assessor's Parcel Numbers 26 To Be Determined 27 SB Drake Central Avenue, LLC 0280-032-07 thru -11, -13, -14, - 15, -37 and -38 28 Verdemont Ranch 20, LLC 0348-111-51 29 CIVF VI – CA1W01, LLC 0280-051-11, -12, -15 30 California Cajun Properties LLC 0261-182-43 31 Elliott Precision Clock Co. 0142-211-29 32 S.B. Universal Self Storage LLC 0266-021-17, -18, -27, -32, -33, -34, -38, -39, -40, -41 33 GWS #7 Development LLC 0280-171-13, -14, -15, -16, -18, -19 and 0280-191-05 thru -10 34 MLG SB Land, LLC & Grandfather’s Land Holdings, LLC 0280-091-27   Packet Pg. 581   Packet Pg. 582   Packet Pg. 583   Packet Pg. 584   Packet Pg. 585   Packet Pg. 586   Packet Pg. 587   Packet Pg. 588   Packet Pg. 589 Public Hearing CFD No. 2019-1 Annexation No. 33: PM 20392 (GWS #7 Development, LLC) Presented by: Joshua Dramitinos, Real Property Services Manager   Packet Pg. 590 Public Hearing on CFD 2019-1 Annexation No. 33 Recommended Action: 1. City Council initiate annexation of territory to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services) ("CFD No. 2019-1" or "CFD") by taking the following actions: a. Hold public hearing, b. Adopt a Resolution calling the election, c. Hold a special landowner election and canvass the election, d. Adopt a Resolution declaring results of special landowner election; and 2. Upon approval of the preceding resolutions, Introduce, read by title only, and waive further reading of Ordinance No. MC-____ amending Ordinance No MC-1522 and levying and apportioning the special tax in CFD No. 2019-1 (as it now exists and will exist in the future); and 3. Schedule the adoption of the Amended Ordinance for April 5, 2023.   Packet Pg. 591 Public Hearing on CFD 2019-1 Annexation No. 33 Discussion: •The Property Owner, GWS #7 Development 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. 33 includes twelve (12) parcels, APN 0280-171-13, -14, - 15, -16, -18, -19, 0280-191-05, -06, -07, -08, -09, and -10. •On February 1, 2023, the City Council adopted Resolution No. 2023-026, a Resolution of Intention to annex these properties into CFD No. 2019-1 and hold a Public Hearing on March 15, 2023. The property owner consented to waiving certain time restriction and conduct the election the same night.   Packet Pg. 592 Public Hearing on CFD 2019-1 Annexation No. 33 Discussion (Cont.) •The proposed maximum annual tax of $2,785 per acre for Special Tax A will be included in CFD No. 2019-1 as Tax Zone 34. •The maximum annual tax is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. •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. 593 Project Location   Packet Pg. 594 Public Hearing on CFD 2019-1 Annexation No. 33 Fiscal Impact •It is anticipated that at build-out the total Special Tax A revenues to pay for maintenance costs will be approximately $25,814. All costs associated with the annexation is borne by the Developer. There is no fiscal impact to the City’s General Fund.   Packet Pg. 595 Questions?   Packet Pg. 596 CE NTRAL AV E FOISY STNORMAN RD CLEVENGER DRLENA RDSUNNYSIDE AVEORANG E SHOW RD ^_ £¤66 MIL L ST 16TH ST SPRUCE ST SIERRA WAYNINTH 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 PACIFIC ST CEDAR AVETIPPECANOE STCENTRAL AVE SAN BERNARDINO AVE MT VERNON AVENORMAN RD PENNSYLVANIA AVEWATERMAN AVECITRUS AVE ACADEMY STMT.VIEW AVECOLTON AVEREDLANDS BLVD MIL L ST§¨¦215 §¨¦10 CFD N O. 2019-1 (M AINTEN ANCE SERVICES)ANNEXATION NO. 33 PROJECT MAP   Packet Pg. 597 1 1 8 2 PUBLIC HEARING City of San Bernardino Request for Council Action Date:March 15, 2023 To:Honorable Mayor and City Council Members From:Charles E. McNeely, Interim City Manager; Nathan Freeman, Agency Director of Community, Housing, and Economic Development Department:Community, Housing, & Economic Development (CED) Subject:Public Hearing on Annexation No. 34 to Community Facilities District 2019-1 (Ward 3) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; and 2. Adopt Resolution No. 2023-048 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. 34); and 3. Hold a special landowner election and canvass the election; and 4. Adopt Resolution No. 2023-049 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. 34); and 5. Introduce, read by title only, and waive further reading of Ordinance No. MC-1615 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2023-2024 to pay annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and 6. Schedule the adoption of Ordinance No. MC-1615 for April 5, 2023.   Packet Pg. 598 1 1 8 2 Background On February 1, 2023, the Mayor and City Council adopted Resolution No. 2023-027, 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 March 15, 2023, on the proposed annexation of the said territory into the community facilities district. As required by the Resolution of Intention, a boundary map was recorded on February 2, 2023, at 1:30 p.m. in Book 90 Page 96, Document No. 2023-0024668 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 6.36 gross acres of a commercial property within the City, requesting that the City assist them in annexing their property into CFD No. 2019-1 under the Mello-Roos Act. The proposed project will consist of a clean energy fueling station. The State legislature enacted the Mello-Roos Act in 1982 to assist public agencies in financing certain public improvements by either issuing tax exempt securities that are repaid by annual levy of special taxes, or to provide for the financing of on-going public services. The landowner requested the City annex into CFD No. 2019-1 to levy a special tax to cover the costs associated with the maintenance of public improvements. The public facilities and services proposed to be financed within the territory to be annexed to the District are the following: 1. Public lighting and appurtenant facilities, including streetlights within public rights-of-way and traffic signals; and 2. Maintenance of streets, including pavement management; and 3. City and County costs associated with the setting, levying and collection of the special tax, and in the administration of the District including the contract administration and for the collection of reserve funds. The proposed area to be annexed into the CFD will be included in Tax Zone 35 and is located at the northwest intersection of E Central Ave and S Tippecanoe Ave., as shown in Attachment #12. The maximum annual special tax for this development has been calculated to be $726 per acre for FY 2023/24. This tax rate includes a Maximum Special Tax A of $533 per acre per year for maintenance services of public facilities and a Maximum Annual Special Tax B (Contingent) of $193 per acre per year. Special Tax B (Contingent) is for the maintenance and operation of the improvements described in Exhibit “B” attached hereto. If the Property Owners Association (POA) were to default of its obligation to maintain such improvements, the City would be able to collect funds to pay for those services. Annual Special Tax A and Annual Special Tax B (Contingent) rate are proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. The property owners have agreed to initiate and conduct the CFD annexation proceedings pursuant to the Mello-   Packet Pg. 599 1 1 8 2 Roos Act of 1982. The property owners have submitted a “Consent and Waiver” form on file in the City Clerk’s Office to initiate and conduct proceedings pursuant to the Mello- Roos Act in 1982, for the annexation into the CFD and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election. In order to annex property to CFD No. 2019-1 pursuant to the provisions of California Government Code Section 53311 et seq., the City must adopt a series of three statutorily required Resolutions and an Ordinance which are summarized below. •Resolution declaring 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 February 1, 2023. •Resolution calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to the District. •Resolution declaring the results of the election and directing the recording of the notice of special tax lien. •Amend the Ordinance and order the levy and collection of special taxes in the District. With the adoption of the Resolutions and the first reading of the amended Ordinance, the second reading of the amended Ordinance would be scheduled for April 5,2023. Discussion The Resolution of Intention called for a public hearing to be held on March 15, 2023, on the issue of the annexation of territory into CFD No. 2019-1. Under the Mello-Roos Act, the Mayor and City Council must hold the public hearing and consider any protests against the formation of the CFD. If the owners of one half or more of the land within the proposed boundaries of the CFD file written protests against the establishment of the CFD, the Council may not create the CFD. If a majority protest is not filed, the Mayor and City Council may adopt the resolution establishing the CFD.   Adoption of Resolution No. 2019-178 on July 17, 2019, established CFD 2019-1, pursuant to the requirements of Government Code Section 53325.1. After a CFD is formed, the Mello-Roos Act requires that for any annexations into the CFD an election be held on the question of whether the proposed special taxes should be levied. The election requires a two-thirds vote in favor of levying the special tax. The landowners filed waivers with respect to the conduct of the election pursuant to Government Code Sections 53326(a) and 53327(b), meaning that the time limits and procedural requirements for conducting an election under the Mello-Roos Act do not have to be followed. Accordingly, City staff has already mailed the election ballots to the landowners and required the ballots to be   Packet Pg. 600 1 1 8 2 returned by the close of the public hearing. If the Mayor and City Council adopt Resolution No. 2023-048, it may immediately proceed to the opening of the ballots and adopt Resolution No. 2023-049 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 ensuring 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 $3,727 from Special Tax A to be used to pay for maintenance costs within the development. On March 1 of each year, every taxable unit for which a building permit has been issued within the boundaries of the CFD, will be subject to the special tax for the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to buildout of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be applied to property within recorded final subdivision maps, as well as other undeveloped property within the boundaries of the CFD. All costs associated with annexation into the CFD have been borne by the Developer. By annexing into the CFD, the costs of maintaining improvements located within the development will be financed through special taxes levied on the parcels within CFD No. 2019-1 and not through the City’s General Fund. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; and 2. Adopt Resolution No. 2023-048 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. 34); and 3. Hold a special landowner election and canvass the election; and 4. Adopt Resolution No. 2023-049 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. 34); and 5. Introduce, read by title only, and waive further reading of Ordinance No. MC-1615 of the Mayor and City Council of the City of San Bernardino, California, amending   Packet Pg. 601 1 1 8 2 Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2023-2024 to pay annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and 6. Schedule the adoption of Ordinance No. MC-1615 for April 5, 2023. Attachments Attachment 1 Resolution No. 2023-048- Resolution Calling Election Attachment 2 Exhibit A Description of Territory Attachment 3 Exhibit B Rate and Method of Apportionment Attachment 4 Exhibit C Special Election Ballot Attachment 5 Resolution No. 2023-049- Resolution Declaring Election Results Attachment 6 Exhibit A Certificate of Election Results Attachment 7 Ordinance No. MC-1615 Attachment 8 Exhibit A Description of Services Attachment 9 Exhibit B Parcel List Attachment 10 Signed Petition and Waiver Attachment 11 PowerPoint Presentation Attachment 12 Project Map Ward: Third Ward Synopsis of Previous Council Actions: June 5, 2019 Mayor and City Council adopted Resolution No. 2019-81, a Resolution of Intention to form Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello- Roos Community Facilities Act of 1982.” July 17, 2019 Resolution No. 2019-178 was adopted establishing Community Facilities District No. 2019-1; Resolution No. 2019-179 was adopted declaring election results for Community Facilities District No. 2019-1; and first reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. August 7, 2019 Final reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1.   Packet Pg. 602 1 1 8 2 February 1, 2023 Mayor and City Council adopted Resolution No. 2023-027, 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”.   Packet Pg. 603 Resolution No. 2023-048 Resolution No. 2023-048 March 15, 2023 Page 1 of 6 2 2 5 6 RESOLUTION NO. 2023-048 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. 34) 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 February 1, 2023 duly adopted Resolution No. 2023-027 (the “Resolution of Intention”) declaring its intention to annex certain territory to CFD No. 2019- 1 (Maintenance Services) and to levy a special tax within that territory to pay for certain services and setting a time and place for the public hearing on the proposed annexation for March 15, 2023; and WHEREAS, the territory proposed to be annexed is identified in a map entitled "Annexation Map No. 34 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on February 2, 2023, in Book 90 of Maps of Assessment and Community Facilities Districts at Page 96, in the office of the San Bernardino County Recorder; and   Packet Pg. 604 Resolution No. 2023-048 Resolution No. 2023-048 March 15, 2023 Page 2 of 6 2 2 5 6 WHEREAS, pursuant to the Act and the Resolution of Intention, a noticed public hearing was convened by the City Council on March 15, 2023, not earlier than the hour of 7:00 p.m. at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410, relative to the proposed annexation of said territory to CFD No. 2019-1. At the hearing, the testimony of all interested persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the March 15, 2023, meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of San Bernardino (www.sbcity.org), and outside of the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410. A copy of the Agenda will be made available upon request to the San Bernardino City Clerk's office at 909-384-5002; and WHEREAS, written protests have not been filed by fifty percent (50%) or more of the registered voters residing within the CFD No 2019-1, or by fifty percent (50%) or more of the registered voters residing within the territory to be annexed, or by the owners of one-half (1/2) or more of the area within the CFD No. 2019-1, or by the owners of one-half (1/2) or more of the territory to be annexed; and WHEREAS, the Mayor and City Council has determined that there are fewer than twelve registered voters residing in the territory proposed to be annexed to the CFD No. 2019-1 and that the qualified electors in such territory are the landowners; and WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to call an election to authorize the annexation of territory to the CFD No. 2019-1 and the levying of a special tax as described in Exhibit “A” hereto; and WHEREAS, the City Council has received a written instrument from each landowner in the territory proposed to be annexed to the CFD No. 2019-1 consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and WHEREAS, the City Clerk has concurred in the election date set forth herein. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2.Conformation of Finding in Resolution of Intention. The City Council reconfirms all of its findings and determinations as set forth in the Resolution of Intention. SECTION 3.Findings Regarding Protests. The City Council finds and determines that written protests to the proposed annexation of territory to the CFD No. 2019-1 and the levy of the   Packet Pg. 605 Resolution No. 2023-048 Resolution No. 2023-048 March 15, 2023 Page 3 of 6 2 2 5 6 special tax within such territory are insufficient in number and in amount under the Act, and the City Council hereby further orders and determines that all such protests are hereby overruled. SECTION 4.Findings Regarding Prior Proceedings. The City Council finds and determines that all prior proceedings had and taken by the City Council, with respect to the annexation of territory to CFD No. 2019-1, are valid and in conformity with the requirements of the Act. SECTION 5. Levy of Special Tax. As stated in the Resolution of Intention, except where funds are otherwise available, subject to the approval of the qualified electors of territory proposed to be annexed to CFD No. 2019-1, a special tax sufficient to pay the costs of the Services (including incidental expenses as described in the Resolution of Intention), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2019-1, will be levied annually in CFD No. 2019-1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit “B” hereto. SECTION 6. Apportionment of Tax. The special tax as apportioned to each parcel is based on the cost of making the Services available to each parcel, or other reasonable basis, and is not based on or upon the ownership of real property. SECTION 7. Tax Roll Preparation. The office of the Public Works Director, 201 North “E” Street, San Bernardino, California 92410, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax levies pursuant to Government Code section 53340.2. The Public Works Director may cause these functions to be performed by his or her deputies, assistants, or other designated agents. SECTION 8. Accountability Measures. Pursuant to Section 50075.1 of the California Government Code, the City shall create a separate account into which tax proceeds will be deposited; and the Public Works Director annually shall file a report with the City Council that will state (a) the amount of funds collected and expended and (b) the status of the Services financed in CFD No. 2019-1. SECTION 9. Special Election; Voting Procedures. The City Council hereby submits the questions of levying the special tax within the territory proposed to be annexed to the qualified electors, in accordance with and subject to the Act. The special election shall be held on March 15, 2023, and shall be conducted as follows: (a) Qualified Electors. The City Council hereby determines that the Services are necessary to meet increased demands placed upon the City as a result of development occurring within the boundaries of CFD No. 2019-1. Because fewer than twelve registered voters resided within the territory proposed to be annexed to CFD No. 2019-1 on February 8, 2023 (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to CFD No. 2019-1), the qualified electors shall be the landowners within territory proposed to be annexed, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to CFD No. 2019-1.   Packet Pg. 606 Resolution No. 2023-048 Resolution No. 2023-048 March 15, 2023 Page 4 of 6 2 2 5 6 (b) Consolidation of Elections; Combination of Propositions on Ballot. The election on the question of levying the special tax and establishing an appropriations limit for CFD No. 2019-1 shall be consolidated, and the two proportions shall be combined into a single ballot proposition for submission to the voters, as authorized by Government Code Section 53353.5. (c) Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The City Council hereby ratifies the City Clerk’s delivery of a ballot to each landowner within the territory proposed to be annexed to CFD No. 2019-1. The City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit “C”. (d) Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 7:00 p.m. on March 15, 2023. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on the election day by voters. Once all qualified electors have voted, the City Clerk may close the election. (e) Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on March 15, 2023, or when all qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election. (f) Declaration of Results. The City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statement of the results of the special election as ascertained by the canvass of the returns. SECTION 10. Filing of Resolution and Map with City Clerk. The City Council hereby directs the City Clerk to file a copy of this resolution and the annexation map of the boundaries of CFD No. 2019-1 in her office. SECTION 11. The Mayor and City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 12. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 13. Effective Date. This Resolution shall become effective immediately.   Packet Pg. 607 Resolution No. 2023-048 Resolution No. 2023-048 March 15, 2023 Page 5 of 6 2 2 5 6 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 15th day of March 2023. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 608 Resolution No. 2023-048 Resolution No. 2023-048 March 15, 2023 Page 6 of 6 2 2 5 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. 2023-048, adopted at a regular meeting held on the 15th day of March 2023 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2023. Genoveva Rocha, CMC, City Clerk   Packet Pg. 609 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. 34 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 0280-091-27 MLG SB Land, LLC & Grandfathers Land Holdings, LLC   Packet Pg. 610 EXHIBIT B City of San Bernardino 1 Community Facilities District No. 2019-1 (Maintenance Services) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) OF THE CITY OF SAN BERNARDINO A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2019-1 (Maintenance Services) (the “CFD No. 2019-1” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2019, in an amount determined by the City Council of the City of San Bernardino, acting in its capacity as the legislative body of CFD No. 2019-1, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2019-1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein. A. DEFINITIONS “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator. “Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2019-1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2019-1, or any designee thereof associated with fulfilling the CFD No. 2019-1 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2019-1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees including payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2019-1 for any other administrative purposes of CFD No. 2019-1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager of the City of San Bernardino, or his or her designee. “Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the March 1 preceding the Fiscal Year in which the Special Tax is being levied, and that have not been issued a building permit on or prior to the March 1 preceding the Fiscal year in which the special tax is being levied. “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of San Bernardino. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number. “Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.   Packet Pg. 611 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. 612 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. 613 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. 614 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. 615 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. 616 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. 617 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. 618 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. 619 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. 620 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 2023-24. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2019-1. TAX ZONE 35 CUP 21-16 Item Description Estimated Cost 1 Lighting $200 2 Streets $2,497 3 Reserves $30 4 Admin $1,000 Total $3,727 Special Tax B Contingent Services – The estimate in the table below breaks down the costs of providing one year’s contingent maintenance services for Fiscal Year 2023-24. If necessary, these services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2019-1 Tax Zone 35. TAX ZONE 35 (CONTINGENT SERVICES) CUP 21-16 Item Description Estimated Cost 1 Streets $348 2 Admin $1,000 Total $1,348 TAX ZONE 35 FY 2023-24 MAXIMUM SPECIAL TAX RATES DEVELOPED PROPERTY AND APPROVED PROPERTY Land Use Category Taxable Unit Maximum Special Tax A Maximum Special Tax B Non-Residential Property Acre $533 $193   Packet Pg. 621 City of San Bernardino 12 Community Facilities District No. 2019-1 (Maintenance Services) TAX ZONE 35 FY 2023-24 MAXIMUM SPECIAL TAX RATES UNDEVELOPED PROPERTY Taxable Unit Maximum Special Tax A Maximum Special Tax B Acre $533 $193   Packet Pg. 622 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 320 21 LM 22-04 2022-23 $6,397 / Acre $0 / Acre 108 Highland, LP 21 22 LM 2021-013 2022-23 $807 / Acre $0 / Acre SBABP IV, LLC 22 23 TR 4592 2022-23 $847 / Acre $320 / Acre 1300 E Highland Ave LLC 23 24 LLA 2020-005 2022-23 $1,385 / Acre $978 / Acre Vone SB, LLC 24 25 TR 20494 2022-23 $174 / RU $17 / RU PI Properties, LLC 25 26 TR 20495 2022-23 $204 / RU $45 / RU Pacific West Company, et al. 26 To Be Determined 27 28 PM 20320 2022-23 $1,851 / Acre $292 / Acre SB Drake Central Avenue LLC 28 29 TR 17329 2023-24 $347 / RU $0 / RU Verdemont Ranch 20, LLC 29 30 LL 2022-11 2022-23 $922 / Acre $372 / Acre CIVF VI – CA1W01, LLC 30 31 PM 20143 2022-23 $2,957 / Acre $1,855 / Acre California Cajun Properties LLC 31 32 PM 20334 2023-24 $358 / Acre $94 / Acre Elliott Precision Block Co. 32 33 PM 3613, 4230 & 4250 2022-23 $1,094 / Acre $186 / Acre S.B. Universal Self Storage LLC   Packet Pg. 623 City of San Bernardino 14 Community Facilities District No. 2019-1 (Maintenance Services) Annexation Tax Zone Tract APN Fiscal Year Maximum Special Tax A Maximum Special Tax B Subdivider 33 34 PM 20392 2023-24 $2,785 / Acre $158 / Acre GWS#7 Development, LLC 34 35 CUP 21-16 2023-24 $533 / Acre $193 / Acre MLG SB Land LLC & Grandfather’s Land Holdings LLC ESCALATION OF MAXIMUM SPECIAL TAXES On each July 1, commencing on July 1, 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. 624 City of San Bernardino 15 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. 625 City of San Bernardino 16 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. 626 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;627 &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;628 EXHIBIT C CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 34 (March 15, 2023) This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2019-1 (Maintenance Services) (“CFD No. 2019-1”) of the City of San Bernardino: Name of Landowner Number of Acres Owned Total Votes Grandfather’s Land Holdings, LLC 3.18 4 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 March 1, 2023, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted. Personal Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on March 15, 2023, at the Clerk’s office at 201 N. “E” Street, Bldg A, City of San Bernardino, CA 92401. However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on March 15, 2023. Very truly yours, Genoveva Rocha, CMC, City Clerk   Packet Pg. 629 EXHIBIT G TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE. OFFICIAL SPECIAL TAX BALLOT Name & Address of Property Owner: Assessor’s Parcel Number(s): Grandfather’s Land Holdings, LLC Attn: Marilyn S. Walker 2182 Vista Entrada Newport Beach, CA 92660 0280-091-27 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 February 1, 2023 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 34 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__.        Marilyn S. Walker Manager Signature Print Name Title     Packet Pg. 630 EXHIBIT G CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 34 (March 15, 2023) This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2019-1 (Maintenance Services) (“CFD No. 2019-1”) of the City of San Bernardino: Name of Landowner Number of Acres Owned Total Votes MLG SB Land, LLC 3.18 4 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 March 1, 2023, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted. Personal Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on March 15, 2023, at the Clerk’s office at 201 N. “E” Street, Bldg A, City of San Bernardino, CA 92401. However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on March 15, 2023. Very truly yours, Genoveva Rocha, CMC, City Clerk   Packet Pg. 631   TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE. OFFICIAL SPECIAL TAX BALLOT Name & Address of Property Owner: Assessor’s Parcel Number(s): MLG SB Land, LLC Attn: Linda G. Alshuler 2182 Vista Entrada Newport Beach, CA 92660 0280-091-27 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 February 1, 2023 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 34 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__.        Linda G. Alshuler Manager Signature Print Name Title     Packet Pg. 632 Resolution No. 2023-049 Resolution No. 2023-049 March 15, 2023 Page 1 of 3 2 2 6 0 RESOLUTION NO. 2023-049 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. 34) WHEREAS, the Mayor and City Council (the "City Council") of the City of San Bernardino (the "City") has heretofore conducted proceedings for the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (the "CFD No. 2019-1") of the City of San Bernardino, including conducting a public hearing pursuant to Section 53339.5 of the Government Code; and WHEREAS, at the conclusion of said public hearing, the Mayor and City Council adopted a Resolution No. 2023-048 calling a special election for March 15, 2023, and submitting to the qualified electors of the territory to be annexed to the CFD No. 2019-1 the question of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property as provided in the form of special election ballot; and WHEREAS, a Certificate of Election Results, attached thereto as Exhibit A, dated March 15, 2023, executed by the City Clerk (or, in the absence of the City Clerk, the Acting City Clerk – in either case, the “Clerk”), has been filed with this Council, certifying that a completed ballot has been returned to the Clerk for each landowner-voter(s) eligible to cast a ballot in said special election, with all votes cast as “Yes” votes in favor of the ballot measure, and further certifying on said basis that the special mailed-ballot election was closed; and WHEREAS, this Council has received, reviewed and hereby accepts the Clerk’s Certificate of Election Results and wishes by this resolution to declare the results of the special mailed-ballot election. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1.The above recitals are true and correct and are incorporated herein by this reference. SECTION 2.Ballot Measure. This Council hereby finds, determines and declares that the ballot measure submitted to the qualified electors of the territory to be annexed to CFD No. 2019-1 has been passed and approved by those qualified electors in accordance with Sections 53328 and 53329 of the Government Code. SECTION 3.Annexation. This Council hereby finds, determines and declares that pursuant to Section 53339.8 of the Government Code, the Mayor and City Council is authorized to determine that the territory to be annexed has been added to and become a part of the CFD No. 2019-1 with full legal effect, and the Mayor and City Council is also authorized, pursuant to said   Packet Pg. 633 Resolution No. 2023-049 Resolution No. 2023-049 March 15, 2023 Page 2 of 3 2 2 6 0 Section 53339.8, to annually levy special taxes within the territory to be annexed to pay the costs of the services to be provided by the CFD No. 2019-1 as specified in Resolution No. 2023-027 adopted by the Mayor and City Council on February 1, 2023. The boundaries of the territory annexed are shown on the map entitled, "Annexation Map No. 34 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on February 2, 2023, in Book 90 of Maps of Assessment and Community Facilities Districts at Page 96, 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 15th day of March 2023. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 634 Resolution No. 2023-049 Resolution No. 2023-049 March 15, 2023 Page 3 of 3 2 2 6 0 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2023-049, adopted at a regular meeting held on the 15th day of March 2023 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2023. Genoveva Rocha, CMC, City Clerk   Packet Pg. 635 EXHIBIT A CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 34 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 February 8, 2023, and on file in the office of the City Clerk of the City in connection with the City Council actions on that date. Copies of the completed waiver and consent form and the completed ballot received by me and on file in my office are attached hereto. Following such receipt, I have personally, and in the presence of all persons present, reviewed the ballot to confirm that it is properly marked and signed, and I hereby certify the result of that count to be that the ballot was cast in favor of the measure. Based upon the foregoing, all votes that were cast having been cast “Yes”, in favor of the ballot measure, the measure has therefore passed. Landowner Qualified Landowner Votes Votes Cast YES NO Grandfather’s Land Holdings, LLC 4 4 MLG SB Land, LLC 4 4 I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 2023. Genoveva Rocha, CMC City Clerk City of San Bernardino By: (Attach completed copies of Waiver/Consent and Ballot)   Packet Pg. 636 Ordinance No. MC-1615 1 2 2 6 2 ORDINANCE NO. MC-1615 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING ORDINANCE NO. MC-1522 AND LEVYING SPECIAL TAXES TO BE COLLECTED DURING FISCAL YEAR 2023-2024 TO PAY THE ANNUAL COSTS OF THE MAINTENANCE AND SERVICING OF LANDSCAPING, LIGHTING, WATER QUALITY IMPROVEMENTS, GRAFFITI, STREETS, STREET SWEEPING, PARKS AND TRAIL MAINTENANCE, A RESERVE FUND FOR CAPITAL REPLACEMENT, AND ADMINISTRATIVE EXPENSES WITH RESPECT TO CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) WHEREAS, the Mayor and City Council (the "City Council") of the City of San Bernardino (the "City") has heretofore adopted Resolution No. 2019-81, stating that a community facilities district to be known as "City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services), County of San Bernardino, State of California" (the "Community Facilities District"), is proposed to be established under the provisions of Chapter 2,5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982" (the "Act"), and fixing the time and place for a public hearing on the formation of the Community Facilities District; and WHEREAS, notice was published and mailed to the owners of the property in the Community Facilities District as required by law relative to the intention of the City Council to establish the Community Facilities District and the levy of the special taxes therein to provide certain services, and of the time and place of said public hearing; and WHEREAS, on March 15, 2023, at the time and place specified in said published and mailed notice, the City Council opened and held a public hearing as required by law relative to the formation of the Community Facilities District, the levy of the special taxes therein and the provision of services by the Community Facilities District; and WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District, the levy of the special taxes and the provision of services therein were heard, and a full and fair hearing was held; and WHEREAS, subsequent to said hearing, the City Council adopted resolutions entitled "Resolution of the City Council of the City of San Bernardino Establishing Calling An Election for the Purpose of Submitting the Question of the Levy of the Proposed Special Tax to the Qualified Electors of the Proposed Community Facilities District; Authorizing the Levy of Special Taxes; and Establishing the Appropriations Limit for the Proposed Community Facilities District" (the "Resolution of Formation") which resolution established the Community Facilities District, authorized the levy of a special tax within the District, and called an election within the District on   Packet Pg. 637 Ordinance No. MC-1615 2 2 2 6 2 the proposition of levying a special tax, and establishing an appropriations limit within the District; and WHEREAS, an election was held within the Community Facilities District in which the sole eligible landowner elector approved said propositions by more than the two-thirds vote required by the Act. THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1.Findings. It is necessary that the City Council of the City of San Bernardino levy special taxes pursuant to Sections 53340 of the Government Code to provide and finance the costs of certain types of services, and related costs within the Community Facilities District, including (i) the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, and park maintenance, (ii) a reserve fund for capital replacement, and (iii) administrative expenses, all as more completely described in Exhibit "A" to Resolution No. 2019-81, attached hereto and by this reference made a part hereof. SECTION 2.Levy of Special Taxes. Special taxes shall be and are hereby levied for the Fiscal Year 2023-2024, and each Fiscal Year thereafter, on all parcels of real property within the District which are subject to taxation, which are identified in Exhibit "B" attached hereto. Pursuant to said Section 53340, such special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and Lien priority in case of delinquency as is provided for ad valorem taxes. SECTION 3.Transmittal to County. The City Clerk shall immediately following adoption of this ordinance transmit a copy hereof to the Board of Supervisors and the County Auditor of the County of San Bernardino together with a request that the special taxes as levied hereby be collected on the tax bills for the parcels identified in Exhibit "B" hereto, along with the ordinary ad valorem property taxes to be levied on and collected from the owners of said parcels. SECTION 4.Authorization to Publish Ordinance. City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California. SECTION 5.Effective Date. This ordinance shall become effective thirty (30) days after its adoption. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ____ day of _______, 2023. Helen Tran, Mayor City of San Bernardino   Packet Pg. 638 Ordinance No. MC-1615 3 2 2 6 2 Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 639 Ordinance No. MC-1615 4 2 2 6 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-1615, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the 15th day of March, 2023. Ordinance No. MC-1615 was approved, passed and adopted at a regular meeting held the ____ day of ______, 2023 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of _____, 2023. Genoveva Rocha, CMC, City Clerk   Packet Pg. 640 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. 641 EXHIBIT B COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) SPECIAL TAX FISCAL YEAR 2023-24 (Effective as of April 5, 2023) ASSESSOR'S PARCEL NUMBERS Annexation Owner Assessor's Parcel Numbers Original Formation Cauffman Family Trust 4/20/98 0142-811-01 thru -13 and 0142-811-14 Cauffman Family Trust 5/4/11 0142-041-52 1 17329, LLC 0261-031-10, -13, 0261-771-01 thru -29 and 0348-111-52 2 GWS #4 Development, LLC 0141-431-24 3 Devore Storage Facility, LLC 0266-041-39 4 TH Rancho Palma, LLC 0261-761-01 thru -65 and 0261-762-01 thru -72 5 Strata Palma, LLC 0261-182-41 6 San Bernardino Medical Center, LLC 0147-114-20 and -21 7 ICO Fund VI, LLC 0281-441-01 thru -56 and 0281-442-01 thru -55 8 TR 2600 Cajon Industrial LLC 0148-122-04 9 Central Commerce Center, LLC 0280-151-29 10 Lankershim Industrial, LP 1192-311-01 11 Prologis, LP 0137-011-01, -31, 0137-051-27, 0137-052-46, 0274-011-11, -12, - 34, -35, -42, -43 12 Dreamland Real Estate Holdings 0281-061-35 13 Magic Laundry Services, Inc. 0141-282-05 and -06 14 Ahmad Family Trust 0136-191-21 15 Gateway SB, LLC 0134-054-33, -40, -44 16 RCH-CWI Belmont, LP 0261-712-01 thru -16 17 George A. Pearson 0142-212-18 18 RGC Family Trust 0142-325-04 19 170 East 40th Street, LLC 0154-242-22 and -23 20 108 Highland, LP 0150-221-78 21 SBABP IV, LLC 0136-371-36, -37, -40, -43 22 1300 E Highland Ave LLC 0150-471-04, -05, -06, -07, -08 23 Vone SB, LLC 0272-161-17 and -18 24 PI Properties, LLC 0143-191-59 25 Pacific West Company, Chenmei Cheng, Ann C. Lau, and Hanhsing Li 0285-211-05, -21, -22, -23, -25   Packet Pg. 642 Annexation Owner Assessor's Parcel Numbers 26 To Be Determined 27 SB Drake Central Avenue, LLC 0280-032-07 thru -11, -13, -14, - 15, -37 and -38 28 Verdemont Ranch 20, LLC 0348-111-51 29 CIVF VI – CA1W01, LLC 0280-051-11, -12, -15 30 California Cajun Properties LLC 0261-182-43 31 Elliott Precision Clock Co. 0142-211-29 32 S.B. Universal Self Storage LLC 0266-021-17, -18, -27, -32, -33, -34, -38, -39, -40, -41 33 GWS #7 Development LLC 0280-171-13, -14, -15, -16, -18, -19 and 0280-191-05 thru -10 34 MLG SB Land, LLC & Grandfather’s Land Holdings, LLC 0280-091-27   Packet Pg. 643   Packet Pg. 644   Packet Pg. 645   Packet Pg. 646   Packet Pg. 647   Packet Pg. 648   Packet Pg. 649   Packet Pg. 650 Public Hearing CFD No. 2019-1 Annexation No. 34: CUP 21-16 (MLG SB Land, LLC and Grandfather’s Land Holdings, LLC) Presented by: Joshua Dramitinos, Real Property Services Manager   Packet Pg. 651 Public Hearing on CFD 2019-1 Annexation No. 34 Recommended Action: 1. City Council initiate annexation of territory to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services) ("CFD No. 2019-1" or "CFD") by taking the following actions: a. Hold public hearing, b. Adopt a Resolution calling the election, c. Hold a special landowner election and canvass the election, d. Adopt a Resolution declaring results of special landowner election; and 2. Upon approval of the preceding resolutions, Introduce, read by title only, and waive further reading of Ordinance No. MC-____ amending Ordinance No MC-1522 and levying and apportioning the special tax in CFD No. 2019-1 (as it now exists and will exist in the future); and 3. Schedule the adoption of the Amended Ordinance for April 5, 2023.   Packet Pg. 652 •Public Hearing on CFD 2019-1 Annexation No. 34 Discussion: •The Property Owner, MLG SB Land, LLC and Grandfather’s Land Holdings, 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. 34 includes one (1) parcel, APN 0280-091-27. •On February 1, 2023, the City Council adopted Resolution No. 2023-027, a Resolution of Intention, to annex these properties into CFD No. 2019-1 and hold a Public Hearing on March 15, 2023. The property owner consented to waiving certain time restriction and conduct the election the same night. •The proposed maximum annual tax of $533 per acre for Special Tax A will be included in CFD No. 2019-1 as Tax Zone 35. •The maximum annual tax is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%.   Packet Pg. 653 Public Hearing on CFD 2019-1 Annexation No. 34 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. 654 Project Location   Packet Pg. 655 Public Hearing on CFD 2019-1 Annexation No. 34 Fiscal Impact •It is anticipated that at build-out the total Special Tax A revenues to pay for maintenance costs will be approximately $3,727. All costs associated with the annexation is borne by the Developer. There is no fiscal impact to the City’s General Fund.   Packet Pg. 656 Questions?   Packet Pg. 657 TIPPECANOE AVECLEVENGER DRSUNNYSIDE AVECE NTRAL AV E SANTA FE ST BENEDICT RD^_ £¤66 MIL L ST 16TH ST SPRUCE ST SIERRA WAYNINTH 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 PACIFIC ST CEDAR AVETIPPECANOE STCENTRAL AVE SAN BERNARDINO AVE MT VERNON AVENORMAN RD PENNSYLVANIA AVEWATERMAN AVECITRUS AVE ACADEMY STMT.VIEW AVECOLTON AVEREDLANDS BLVD MIL L ST§¨¦215 §¨¦10 CFD N O. 2019-1 (M AINTEN ANCE SERVICES)ANNEXATION NO. 34 PROJECT MAP   Packet Pg. 658 1 1 8 9 PUBLIC HEARING City of San Bernardino Request for Council Action Date:March 15, 2023 To:Honorable Mayor and City Council Members From:Charles E. McNeely, Interim City Manager; Nathan Freeman, Agency Director of Community, Housing, and Economic Development Department:Community, Housing, & Economic Development (CED) Subject:Substantial Amendment to the Fiscal Year 2021-2022 Annual Action Plan – HOME Investment Partnership American Rescue Plan Program (HOME-ARP) (All Wards) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Conduct a Public Hearing of the draft HOME Investment Partnership Allocation Plan; 2. Approve a Substantial Amendment to the Fiscal Year 2021-2022; 3. Approve the HOME Investment Partnership Allocation Plan; and 4. Authorize the Interim City Manager, or his designee, to execute any further documents as may be necessary to effectuate the submittal of the Substantial Amendment to the Fiscal Year 2021-2022 Action Plan. Background On March 11, 2021, the American Rescue Plan Act of 2021 (ARP) was signed into law. To address the need for homelessness assistance and supportive services, $5 billion in federal ARP funds were appropriated to be administered through the federal HOME Investment Partnerships Program (HOME). On April 8, 2021, the U.S. Department of Housing and Urban Development (HUD) allocated HOME-ARP funds to grantees using the HOME formula established in 24 CFR 92.50 and 92.60. As a recipient of HOME funds, the City of San Bernardino (City) is eligible to receive a HOME-ARP allocation in the amount of $5,058,437. Per 24 CFR 570.200(h) and 24 CFR 92.212(b), the City is required to amend the 2021-2022 Annual Action Plan as a request for HOME-ARP pre-award costs. HOME-ARP funds can be used to fund activities that primarily benefit qualifying   Packet Pg. 659 1 1 8 9 individuals and families who are homeless, at risk of homelessness, or in other vulnerable populations. These activities include: •Development and support of affordable housing; •Tenant-based rental assistance (TBRA); •Provision of supportive services; and •Acquisition and development of non-congregate shelter units. It is anticipated that the HOME-ARP funds, totaling $5,058,437, will be used for the Navigation Center, as detailed below, with up to 15% of these funds ($758,766) used for program administration costs. To receive its HOME-ARP funds, the City must engage in consultation and public participation processes, develop a HOME-ARP allocation plan that meets the HUD requirements, and submit it to HUD as a substantial amendment to the City’s Fiscal Year 2021-2022 Annual Action Plan (Action Plan). The HOME-ARP allocation plan must describe how the City intends to distribute HOME-ARP funds, including how it will use these funds to address the needs of HOME-ARP qualifying populations. On February 1, 2023, the Mayor and City Council adopted Resolution No. 2023-028 declaring a Homelessness State of Emergency. HOME-ARP funds will provide financial resources to support the unhoused community by providing low-barrier shelter access, supportive services, and case management. On March 1, 2023, the Mayor and City Council held a Public Hearing to accept public comment on the draft Substantial Amendment to the Action Plan. The draft documents were made available at the City’s office and website from February 6, 2023, to March 7, 2023, as required by HUD. Discussion In accordance with the City’s Citizen Participation Plan, a substantial amendment to the Annual Action Plan is required when the City: •Changes allocation priorities. •Expects to carry out a new or existing activity while using funds that have not been covered by the Consolidated Plan or included in the approved Action Plan. •Change the purpose, scope, location, or beneficiaries of an activity (any activity whose funding allocation is increased by more than 50% will constitute a substantial amendment). HOME-ARP funds must be used to assist individuals/households who are homeless, at risk of homelessness, or other vulnerable populations (e.g., individuals fleeing domestic violence). HOME-ARP funds can be used to provide affordable housing, tenant-based rental assistance, supportive services, and non-congregate shelter. The City anticipates allocating $4,299,672 of HOME-ARP funds to assist in the financial support needed in the designing, construction, and operation of the City’s Homeless   Packet Pg. 660 1 1 8 9 Navigation Center. The Navigation Center will assist the City’s vulnerable homeless populations with income stabilization services, job training, mental health services, case management, and non-congregate shelter units. The HOME-ARP Program allows for up to 15% ($758,766) of the funds to be utilized for program administration. The Navigation Center activity is aligned with the City’s Consolidated Plan and Continuum of Care initiatives to provide emergency and temporary accommodations for the City’s homeless populations during the Homelessness State of Emergency. These activities are eligible under HOME-ARP and would further the City’s support with assisting the unhoused populations including homeless veterans, victims of domestic violence, those with mental and physical challenges and needs, as well as underserved populations. The City has incorporated comments received during the 30-day public commenting timeframe and is requesting approval of the submission to HUD. 2021-2025 Strategic Targets and Goals Submittal of the Substantial Amendment and HOME-ARP Allocation Plan aligns with Key Target No. 1: Improved Operational & Financial Capacity, by securing a funding allocation for housing, and Key Target No. 3: Improved Quality of Life, by securing additional funds to reduce the burden of homelessness through engagement, collaboration, and alignment with other entities. Fiscal Impact There is no fiscal impact to the General Fund associated with this report. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Conduct a Public Hearing of the draft HOME Investment Partnership Allocation Plan; 2. Approve a Substantial Amendment to the Fiscal Year 2021-2022; 3. Approve of the HOME Investment Partnership Allocation Plan; and 4. Authorize the City Manager, or his designee, to execute any further documents as may be necessary to effectuate the submittal of the Substantial Amendment to the Fiscal Year 2021-2022 Action Plan. Attachments Attachment 1 FY 2021-2022 Action Plan Attachment 2 Draft FY2021-2022 Substantial Amendment Attachment 3 Draft HOME-ARP Allocation Plan Attachment 4 Resolution 2023-028 Proclaiming Homelessness Local Emergency Attachment 5 Public Notice   Packet Pg. 661 1 1 8 9 Ward: All Wards Synopsis of Previous Council Actions: June 6, 2021 The Mayor and City Council conducted a public hearing and adopted the Fiscal Year 2021-2022 Annual Plan as an application for funding under Community Development Block Grant (CDBG), Home Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) programs and authorized the City Manager or designee to take any further actions and execute any further documents as are necessary to effectuate the submittal of the Draft HUD Fiscal Year 2021-22 Annual Action Plan and Certification to HUD. June 15, 2022 The Mayor and City Council conducted public hearing No. 1 on the review of the draft Fiscal Year 2021-2022 Annual Action Plan (AAP) associated with the Community Development Block Grant, HOME Investment Partnerships and Emergency Solutions Grant Programs. March 1, 2023 The Mayor and City Council conducted public hearing No. 1 on the Substantial Amendment to the Fiscal Year 2021-2022 Annual Action Plan – HOME Investment Partnership American Rescue Plan Program.   Packet Pg. 662 Annual Action Plan 2021 1 OMB Control No: 2506-0117 (exp. 09/30/2021) Executive Summary AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) 1. Introduction Each year, the US Department of Housing and Urban Development (HUD) provides funding for housing and community development programs to the City of San Bernardino, specifically Community Development Block Grant (CDBG) and other federal housing funds. To receive these funds, the City must complete a report every five years called the Consolidated Plan. The Consolidated Plan is carried out through Annual Action Plans, which provide a concise summary of the actions, activities, and the specific federal and non-federal resources that will be used each year to address the priority needs and specific goals identified by the Consolidated Plans. The City is an entitlement jurisdiction and will receive the following federal grants:  Community Development Block Grant (CDBG)  HOME Investment Partnerships Program (HOME)  Emergency Solutions Grant (ESG) 2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan. The City of San Bernardino has identified a range of housing and community development needs in accordance with the structure presented in HUD regulations 24 CFR 91.215 affordable housing, homelessness, and non-housing community development. Priority is assigned based on the level of need demonstrated by the data collected during the plan preparation, specifically in the Needs Assessment and the Market Analysis, the information gathered during the consultation and citizen participation process, and the availability of resources to address these needs. Based on these components, housing needs are considered a high priority, particularly low-income ownership housing and transitional housing with supportive services for the homeless population. Out of the top ten priority needs, the feedback from citizen participation indicated that the top four pressing concerns of the City are:   Packet Pg. 663 Annual Action Plan 2021 2 OMB Control No: 2506-0117 (exp. 09/30/2021)  Homelessness and homelessness issues (i.e., supportive housing)  Access to affordable housing  Street infrastructure (i.e., road maintenance and street lighting)  Joblessness/job creation The City aims to utilize their grant funds to coordinate services, programs, and projects with the goal of creating a decent and suitable living environment to benefit low- and moderate-income households and those with special needs. Priorities for the 2021-2022 Action Plan have been established in consultation with the residents of San Bernardino and the serving community organizations. Priorities Objectives/Goals The following goals outlined in the Consolidated Plan and to be implemented during the FY 21-22 Annual Action Plan are listed below and will go into further detail in section AP-20 Annual Goals: 1. Promote Economic Development: Assist in providing direct loans and loan guarantees, establish revolving loan and/or facilitate peer lending programs for the stabilization and expansion of microenterprises through the Small Business Micro Loan Program, and estimated 10 businesses will be assisted. 2. Promote Economic Development: Repayment of debt service for the Arden Guthrie Project which will create 214 jobs. 3. Promote Economic Development: Provide no-cost services to residents/business owners in City of San Bernardino to help improve the likelihood of the successful growth of existing businesses through the Micro-Enterprise Program and estimated 10 businesses will be assisted. 4. Fair Housing: Support fair housing services, landlord/tenant mediation, and housing counseling services. 5. Expand Homeownership Opportunities: Fund construction of four (4) single family homes, city- wide where opportunities exist for infill housing for low to moderate income households whose incomes will range from 50% to 80% of Area Median Income (AMI). 6. Expand Homeownership Opportunities: Assist homebuyers with the purchase of affordable housing in the Eastpointe Community which will assist four (4) households with the purchase of a home. 7. New Affordable Rental Housing Construction or Rehabilitation: Arrowhead Grove, formerly known as Waterman Gardens Public Housing Community, will continue phase 4 of the multi- phase Rental Assistance Demonstration (RAD) project with the construction of 94 units. 1. New Affordable Rental Housing Construction or Rehabilitation: Assist 100 households in the new Seccombe rental housing project. 2. New Affordable Rental Housing Construction or Rehabilitation: Potential project to be considered utilizing unprogrammed funds once the City does a Substantial Amendment to its   Packet Pg. 664 Annual Action Plan 2021 3 OMB Control No: 2506-0117 (exp. 09/30/2021) Annual Action Plan (AAP) FY 2021-2022. The City would require public review and comment of the AAP. Based on public comment, would the City then proceed with funding the project. The City's intent is to fund a 30 unit Permanent Supportive Housing (PSH) project for U.S. Veterans. The City, in partnership with the San Bernardino County Community Development and Housing Department (CDH), would entail the development of PSH or affordable housing. 3. Improve Facilities and Infrastructure: Improve selected streets resulting from new Infill Housing projects. The following streets will be improved: 532 Ramona Avenue – Ward 1; 2129 Wall Avenue – Ward 2; 938 N. G Street – Ward 2; 140 W. 13th Street – Ward 2; 2060 E. 18th Street – Ward 7, Grape Street (Walnut to Mill Street) – Ward 3, and Davidson Avenue (Baseline to 14th Street) – Ward 6. Summary of some of the findings used to determine priority needs  215,784 persons reside in San Bernardino (US Census Bureau 2019) comprising of 59,295 households.  Approximately 26% live in poverty  San Bernardino County homeless count data have indicated a need to support programs that serve people experiencing homelessness. The 2020 PIT count for the City is 1,056 which accounts for 34% of San Bernardino County’s total count.  City provides for and residents benefits from participating in homelessness and homelessness issues (i.e., supportive housing), access to affordable housing, street infrastructure (i.e., road maintenance and street lighting) and joblessness/job creation.  The creation City uses CDBG funds for public services, public facilities and improvements, housing activities, and planning and administrative costs. The CDBG program’s primary objective is to develop viable urban communities by providing decent housing, a suitable living environment, and economic opportunities, principally for persons of low and moderate income. Funds can be used for a wide array of activities, including housing rehabilitation, homeownership assistance, lead-based paint detection and removal, construction or rehabilitation of public facilities and infrastructure, removal of architectural barriers, public services, rehabilitation of commercial or industrial buildings, and loans or grants to businesses. 3. Evaluation of past performance This is an evaluation of past performance that helped lead the grantee to choose its goals or projects. Preserve and rehabilitate existing single-family dwellings – The Owner-Occupied Housing Rehabilitation Program provided financial assistance to income-qualified, San Bernardino homeowners for repairs to their homes. Due to the spread of the Coronavirus 2019 (COVID-19) pandemic, this program came to a halt in order to preserve the safety of their residents and staff, which hindered the ability to meet the City’s goals and outcomes.   Packet Pg. 665 Annual Action Plan 2021 4 OMB Control No: 2506-0117 (exp. 09/30/2021) Expand Homeownership opportunities and assist homebuyers with the purchase of affordable housing In FY 2019-20, the City completed the construction on two (2) homes on an infill lot to create affordable housing opportunities. This program improves neighborhoods by utilizing vacant and blighted lots for new owner-occupied housing. The City and their CHDO partner, Housing Partners I, are marketing these affordable units for sale to households at 50% to 80% of AMI for the County of San Bernardino. Provide Supportive Services - Homeless / Non-Homeless Special Needs - In FY 2019-20, the City utilized HOME program income for the Arrowhead Grove, formerly known as Waterman Gardens Public Housing Community, for phase 2 of the multi-phase Rental Assistance Demonstration (RAD) project. Phase two entails the building of 147 affordable units for mixed-income family apartments to households with 30% to 60% of AMI. Promote Economic Development - In partnership with the Inland Empire Small Business Development Center, the City promoted and hosted small business/entrepreneur workshops. 12 San Bernardino small businesses were assisted. Due to the COVID-19 pandemic, workshops had to be postponed. Improve Public Facilities and Infrastructure - In FY 2019-2020, the City completed: Lytle Creek Park roof replacement, Jerry Lewis Swim Center facility upgrades and replacement of playground equipment at five parks: Meadowbrook Fields, Lytle Creek, Wildwood, Harrison Canyon, and Speicher. Fair Housing - The Inland Fair Housing and Mediation Board provided landlord-tenant counseling and other fair housing services to eliminate identified impediments to fair housing through education, enforcement, and testing to approximately 3,300 persons in the City. Planning and Administration: Provided funds for planning and administration of CDBG, HOME and ESG. Provide rental assistance and preserve existing affordable rental housing - In FY 2019-2020, two (2) rental projects were inspected to ensure units remained affordable and habitable. Expand the affordable housing inventory through new construction - In 2019-2020, the third phase of construction commenced on the site of the former Waterman Gardens Public Housing community (now called Arrowhead Grove), which resulted in a total of 184 mixed-income family apartments. Arrowhead Grove will provide 147 affordable one- to four-bedroom family units with an additional 35 market-rate units interspersed across the site and two units for property managers. In addition to the new units constructed, a new traffic signal and bus shelter were installed. Improve Neighborhood Conditions – Demolition Program - Funding for this project has been eliminated due to the program’s inability to spend down its CDBG budgeted amounts during two consecutive years.   Packet Pg. 666 Annual Action Plan 2021 5 OMB Control No: 2506-0117 (exp. 09/30/2021) 4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan To solicit public input during the development of the Consolidated Plan and the Annual Action Plan, the City conducted the following meetings:  Virtual Community Workshop.  Stakeholder Interviews; and  Online Survey. To solicit public input during the development of the Annual Action Plan, the City conducted a virtual Community Workshop through online platform Zoom on Wednesday, March 31, 2021 at 5:30 PM to 7:30 PM. There were 13 people in attendance. This virtual meeting was held in pursuant to Governor Newsom’s Executive Order N-29-20 and conducted in accordance with state and local health regulations as a response to the Coronavirus 2019 (COVID-19) pandemic. The following organizations attended and were interviewed during the virtual Workshop:  Arts Connection, the Arts Council of San Bernardino County  Congregations Organized for Prophetic Engagement (COPE)  Dignity Health  Making Hope Happen Foundation  Mary Erickson Community Housing/Valon Consulting  Uplift San Bernardino The City has also conducted stakeholder interviews to obtain feedback. The feedback was especially helpful in identifying gaps in services, trends in the local community, and needs relating to specific services and populations. The following organizations participated in the stakeholder interviews:  Dignity Health  Lutheran Social Services Southern California  Neighborhood Partnership Housing Services  San Bernardino Housing Authority Residents and service providers for the City of San Bernardino were encouraged to participate in the Annual Action Plan process and review. Newspaper ads were published in the El Chicano and the San Bernardino Sun to notify the public about the first public hearing and 30-day public review was published on March 15, 2021. The first public hearing for the draft FY 21-22 Annual Action Plan to City Council was held on April 21, 2021.   Packet Pg. 667 Annual Action Plan 2021 6 OMB Control No: 2506-0117 (exp. 09/30/2021) The Annual Action Plan was available for public review beginning May 3, 2021 and up to and including June 1, 2021 for the second public hearing, held on June 2, 2021. The report was available on the City website for review and commenting Public comments received will be incorporated into the final Annual Action Plan. Lastly, an online survey for FY21-22 Annual Action Plan input was available in both English and Spanish to gain input from the residents of San Bernardino. This survey utilized the platform, SurveyMonkey, and was made available to residents from March 11, 2021 to April 3, 2021. The City received a total of 101 responses to the online survey (74 in English and 27 in Spanish). 5. Summary of public comments This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan. The feedback from the Community Workshop and Stakeholder interviews indicated that the top four pressing concerns of the City are: 1. Homelessness and homelessness issues (i.e., supportive housing) 2. Access to affordable housing 3. Street infrastructure (i.e., road maintenance and street lighting) 4. Joblessness/job creation Suggestions from the community to overcome these issues include additional public education/workshops, more communication from the City to the public, and more opportunities for public/private partnerships with community-based organizations. There is support for funds to be spent on affordable housing development, economic development for the City, and homeless services. The City also conducted an online survey in both English and Spanish from March 11, 2021 to April 3, 2021. There was a total of 101 responses to the online survey. A little over half of the respondents were homeowners (54%) with the remaining respondents being renters (39%) or in other types of living situations (7%). The response came from residents living in the City for 10 years or over. The top four areas of need identified in the online surveys were: 1. Economic Development (job creation) 2. Infrastructure (i.e., sidewalks/streets) 3. Services for the homeless 4. Affordable housing The top three infrastructure needs that were identified were street improvements, street lighting, and tree planting/urban greenery. City-facility needs identified were community centers, park and recreational facilities, and youth centers. For housing needs, the top three identified were:   Packet Pg. 668 Annual Action Plan 2021 7 OMB Control No: 2506-0117 (exp. 09/30/2021) 1. First-time home buyer assistance 2. Owner-occupied rehabilitation 3. Renter-occupied housing rehabilitation Respondents also identified two primary homeless needs: 1. Permanent supportive housing with social services 2. Transitional housing (short-term up to 6 months There were no public comments made during the two public hearings (April 21, 2021 and June 2, 2021) nor during the 30-day public comment period of May 3, 2021 through June 1, 2021. 6. Summary of comments or views not accepted and the reasons for not accepting them All comments made were accepted and incorporated into the FY 2021-2022 Annual Action Plan. There were no comments that were not accepted. 7. Summary The City has taken diligent and good faith efforts to reach all segments of the community that may benefit from the City’s CDBG, HOME, and ESG programs. PR-05 Lead & Responsible Agencies – 91.200(b)   Packet Pg. 669 Annual Action Plan 2021 8 OMB Control No: 2506-0117 (exp. 09/30/2021) PR-05 Lead & Responsible Agencies – 91.200(b) 1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. Agency Role Name Department/Agency Lead Agency SAN BERNARDINO CDBG Administrator SAN BERNARDINO Community and Economic Development Department HOPWA Administrator HOME Administrator SAN BERNARDINO Community and Economic Development Department ESG Administrator SAN BERNARDINO Community and Economic Development Department HOPWA-C Administrator Table 1 – Responsible Agencies Narrative (optional) The City’s Community and Economic Development Department administers, implements, and monitors activities and projects funded through the federal grants. The Community and Economic Development Department is responsible for developing and carrying out the priorities and goals established in the Consolidated Plan. In addition, the Department works collaboratively with the Public Works Department, City Parks and Recreation Department, City Manager’s Office, City Council, and the CDBG Ad Hoc Committee to develop goals and priorities for the current year that is aligned with the Consolidated Plan and address the needs of the residents of San Bernardino. Consolidated Plan Public Contact Information For matters concerning the City of San Bernardino’s CDBG, HOME, and ESG programs, please contact: the Community and Economic Development Department, Gretel Noble, Housing Manager at 201 N E Street, 3rd Floor, San Bernardino, CA 92418, telephone: (909) 384-7270 or via email at noble_gr@sbcity.org. &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;670 Annual Action Plan 2021 9 OMB Control No: 2506-0117 (exp. 09/30/2021) &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;671 Annual Action Plan 2021 10 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-10 Consultation – 91.100, 91.200(b), 91.215(l) 1. Introduction The City views the Consolidated Plan and Annual Action Plan as an opportunity to engage the community in the CDBG, HOME, and ESG investment process. The City encourages their residents to voice their needs and concerns regarding homelessness, affordable housing, and community development. All members of the public, especially those living in low- and moderate-income neighborhoods, are encouraged to participate in the planning stages. The goal of the consultation process was to gather data to help determine the priority needs. The City also coordinates and collaborates with various service providers to identify specific needs or certain vulnerable populations. Provide a concise summary of the jurisdiction's activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l)). (continued)  The City is working with lead partners National Community Renaissance (CORE), an affordable housing developer; Nonprofit Finance Fund (NFF), a national CDFI; and Build Healthy Place Network (BHPN), the national center at the intersection of community development and health to advance equity, on the UPLIFT SB Equitable Development Plan. The UPLIFT SB Equitable Development Plan attains two overarching goals: 1) encourage health investors to advance comprehensive solutions and 2) spark collaborative problem-solving to address persistent community development challenges in the Waterman Baseline neighborhood and the City of San Bernardino, which include increasing the level of activity and improving the economic and health equity outcomes for residents and the community. UPLIFT Equitable Development Plan will strengthen the existing Waterman and Baseline Specific Plan (Specific Plan) and leverage other community-led collective impact efforts. The City is in collaboration with mentioned lead partners to increase investments in housing, health and safety, job creation. The goal is to bring business service providers along to determine how to best deploy resources to residents in the City of San Bernardino. These efforts will address some of the biggest barriers to opportunity, high crime rates, homelessness, and lack of good paying jobs, namely through affordable housing, job creation, and economic development.  For the past year the City has been working with an initiative headed by the Center for Community Investment and seven health providers, including Dignity Health in an initiative to Accelerate Investments in Healthy Communities (AIHC).  The City has also interviewed Dignity Health; Lutheran Social Services Southern California; Neighborhood Partnership Housing Services; and San Bernardino Housing Authority to receive input on potential gaps in services and identification of needs for residents.   Packet Pg. 672 Annual Action Plan 2021 11 OMB Control No: 2506-0117 (exp. 09/30/2021) Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))  The City has been working in partnership with the Housing Authority of the County of San Bernardino (HACSB) and County Community Development and Housing Agency to redevelop 251 units of public housing at the former Waterman Gardens public housing project (now known as Arrowhead Grove). The City is also working in partnership with National CORE, an Inland Empire CHDO, and the Housing Authority of the County of San Bernardino in the development of Arrowhead Grove.  The City partners with Neighborhood Partnership Housing Services (NPHS), a CHDO, for the administration of an owner-occupied, single family rehabilitation program.  Housing Partners I, also a CHDO, and NPHS partners with the City to build new single family, ownership housing on vacant and blighted lots throughout the city, in order to increase homeownership among households at and below 80% of Area Median Income.  The City coordinates with the County Department of Behavioral Health (DBH) in an ongoing exchange of information and resources available to persons who are experiencing homelessness and mental health crises. The City has also partnered with DBH in the Golden Apartments project where DBH provides the case management services for the formerly homeless residents who live with mental illness.  The City has also been working on investment strategies for housing and health with Dignity Health. Dignity Health’s Community Investment program provided a $1.2 million dollar loan for the construction (which is currently underway) of Arrowhead Grove Phase 3, which will result in the construction of a 184 mixed income development, with 147 units reserved for low-income households.  The City has been consulting with the Housing Authority of the County of San Bernardino and the Community Development and Housing Agency of the County of San Bernardino concerning lead-based paint hazards as it relates to rehabilitation of owner-occupied single-family homes. The City has also consulted with HUD’s environmental office regarding lead-based paint and staff attended the most recent lead-based paint training provided onsite at the HUD Los Angeles office.  The City has been in coordination with the San Bernardino Unified School District with their Uplift San Bernardino initiative. Uplift San Bernardino is focused on the future of the youth community, such as launching the future workforce into local jobs; ignite Upward Mobility in the community; convene leadership work groups to change systems & policies; effectively inspire community voice & engagement to inform better decisions & increase access to opportunities especially for youth; create shared understanding of issues & opportunities based on research & data; mobilize people and resources to fill in gaps identified between systems and promote accountability through a transparent history of Uplift’s decisions, progress, & learning.  The City has been working in partnership with Inland Empire Small Businesses Development Center (IESBDC) to deliver small business startup workshops to existing small business owners   Packet Pg. 673 Annual Action Plan 2021 12 OMB Control No: 2506-0117 (exp. 09/30/2021) and aspiring entrepreneurs within the City of San Bernardino. Small business startup workshops are offered in both English and Spanish to accommodate the San Bernardino population. Spanish workshops are offered in collaboration with the Mexican consulate, who host their space for Spanish speaking participants. Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness. The City recognizes the needs to address people experiencing homelessness, particularly the chronically homeless populations. The City collaboratively works with four entities throughout the County of San Bernardino. The following entities are: 1) Interagency Council on Homelessness 2) Homeless Provider Network 3) Central Valley Steering Committee 4) San Bernardino County Behavioral Health Administration, Office of Homeless Services These entities comprise of policy-making bodies, advisory groups of faith-based and non-profit housing organizations, collaborative organization among City jurisdictions, and committees established specifically to assist those experiencing homelessness. The “10-Year Strategy to End Homelessness in San Bernardino County” guides the actions and serves as a blueprint to end homelessness in the County of San Bernardino. Concurrently, the City of San Bernardino also actively participates in the Continuum of Care (CoC) and is fully supportive of the objectives of the 10-Year Strategy to End Homelessness in San Bernardino County plan. Bessine Richard represents the City on the board of the Interagency Council on Homelessness. The City’s Police Department support and participates in the Point-in-Time (PIT) Homeless County. The Community & Economic Department requires their ESG subrecipients to participate in the CoC’s Homeless Management Information System (HMIS). This software application is designed to collect client-level data and data on the provision of housing and services to homeless individuals, families, and person at-risk of homelessness. Lastly, the City funds four organizations through the ESG programs that provide street outreach, emergency shelter, homeless prevention services, rapid rehousing and HMIS. Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS   Packet Pg. 674 Annual Action Plan 2021 13 OMB Control No: 2506-0117 (exp. 09/30/2021) The City closely works with the CoC and attends its regularly scheduled meetings and trainings in the area of homelessness. The City consults with the Interagency Council on Homelessness (ICH), which has not less than one former homeless member, in regard to funding recommendations. The discussions at the ICH meetings are comprised of updates on HMIS and a monthly data quality report is provided illustrating the number of clients enrolled in the non-profit organizations using HMIS. The updates are helpful in evaluating the outcomes of projects and activities assisted with ESG. Other topics of discussion include presentations to the Office of Homeless Services on activities from the San Bernardino County Reentry Collaborative regarding workshop meetings to discuss updating their strategic plan, and a Community Recidivism Reduction Program. A Veterans Initiative from the Housing Authority of the County of San Bernardino (HACSB) has continued to develop creative and effective ways to address the needs of the County’s homeless veterans. Over the past year, HASCB, along with the support and efforts of our affiliate non-profits, KEYS and HP1 Inc., has created housing opportunities for homeless veterans. 2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities   Packet Pg. 675 Annual Action Plan 2021 14 OMB Control No: 2506-0117 (exp. 09/30/2021) Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization Dignity Health St Bernardine Medical Center Agency/Group/Organization Type Health Agency Major Employer What section of the Plan was addressed by Consultation? Housing Need Assessment Non-Homeless Special Needs Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The organization was interviewed by the City of City of San Bernardino and participated in a community workshop. The anticipated outcomes are increased commitment to affordable housing/economic investment in the community. 2 Agency/Group/Organization Neighborhood Partnership Housing Services, Inc. (NPHS) Agency/Group/Organization Type Housing What section of the Plan was addressed by Consultation? Housing Need Assessment Non-Homeless Special Needs Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The organization was interviewed by the City of San Bernardino. The anticipated outcomes are increased commitment to affordable housing and infrastructure investment in the community. 3 Agency/Group/Organization Lutheran Social Services Southern California Agency/Group/Organization Type Services - Housing What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The organization was interviewed by the City of San Bernardino. The anticipated outcomes are increased commitment to affordable housing/economic investment in the community &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;676 Annual Action Plan 2021 15 OMB Control No: 2506-0117 (exp. 09/30/2021) 4 Agency/Group/Organization Housing Authority of the County of San Bernardino Agency/Group/Organization Type Health Agency What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The organization was interviewed by the City of San Bernardino. The anticipated outcomes are increased commitment to affordable housing/economic investment in the community. 5 Agency/Group/Organization SAN BERNARDINO Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation? Hazard Mitigation & Local Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The Public Works Department has an ongoing internal coordination process with the Housing Department for projects and plans funded through CDBG. The coordination provides the City with input regarding hazard mitigation and a continued open channel with resilience agencies (agencies whose primary responsibilities include the management of flood prone areas, public land or water resources and emergency management agencies) in the development of its plan. The IT Department has an ongoing coordination process with the Housing Department for projects and plans funded through CDBG. The internal coordination provides the City with input regarding broadband (broadband internet service providers, organizations engaged in narrowing the digital divide) in the development of its plan. Identify any Agency Types not consulted and provide rationale for not consulting &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;677 Annual Action Plan 2021 16 OMB Control No: 2506-0117 (exp. 09/30/2021) No agency types were excluded from engagement. For future planning processes, the City will make a special effort to include specified organizations that provide a wide range of services to the residents of San Bernardino. Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care Continuum of Care Alliance Potential funding allocations to address homeless needs will complement the COC Strategy. 10-Year Strategy to End Homelessness Continuum of Care Alliance Funding allocations to address homeless needs will be consistent with the 10-Year Strategy to End Homelessness. City of San Bernardino 2013-2021 Housing Element City of San Bernardino Department of Community Development Potential funding allocations to address housing needs that will complement the 2013-2021 Housing Element Housing Authority County of San Bernardino (HACSB) Housing Authority County of San Bernardino (HACSB) The City will support HACSB's efforts on public housing and the ongoing partnership on Waterman Gardens Table 3 – Other local / regional / federal planning efforts Narrative (optional) City staff, along with assistance from their consultant, worked to engage a wide array of residents and stakeholder for the community outreach process. The City engaged residents and stakeholders through a community survey, stakeholder interviews, and community meetings. Various service providers, such as Health Agencies and Homeless Service providers, were included. Stakeholders and residents provided feedback on priorities, housing problems and possible solutions. They were asked to provide input on how the City should spend their CDBG, HOME and ESG funding. &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;678 Annual Action Plan 2021 17 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-12 Participation – 91.105, 91.200(c) 1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting The City published notices for public hearings and 30-day public review of the FY 2021-2022 Annual Action Plan in El Chicano and the San Bernardino Sun on March 15, 2021 and March 18, 2021 respectively in accordance with its citizen participation plan. The report was made available on the City’s website at the Community and Economic Development Department. In addition, notification of the Virtual Community Workshop was posted to the City’s social media account. &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;679 Annual Action Plan 2021 18 OMB Control No: 2506-0117 (exp. 09/30/2021) Citizen Participation Outreach Sort Order Mode of Outreach Target of Outreach Summary of response/attendance Summary of comments received Summary of comments not accepted and reasons URL (If applicable) 1 Newspaper Ad Minorities Non-English Speaking - Specify other language: Spanish Persons with disabilities Residents of Public and Assisted Housing Low Income persons No responses were received. No comments were received. Because comments were not received there is no summary of comments not accepted. http:iecn.com/newspapers/el-chicano/ https://www.sbsun.com &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;680 Annual Action Plan 2021 19 OMB Control No: 2506-0117 (exp. 09/30/2021) 2 Online Survey Minorities Non-English Speaking - Specify other language: Spanish Persons with disabilities Non-targeted/broad community Residents of Public and Assisted Housing Low Income persons 101 responses received 82% Residents of the City of San Bernardino 75% English speakers25% Spanish speakers54% Homeowners39% RentersSummary of top four concerns:1. Homelessness and homelessness issues (i.e., supportive housing)2. Access to affordable housing3. Street infrastructurAll comments were accepted. www.sbcity.org/housing &nbsp;&nbsp;&nbsp;&nbsp;Packet Pg.&nbsp;681 SUBSTANTIAL AMENDMENT 2021-2022 ANNUAL ACTION PLAN HOME-ARP FUNDS Background: On March 11, 2021, the American Rescue Plan Act of 2021 (ARP) was passed to provide support for individuals experiencing homelessness, are at risk of homelessness, and vulnerable populations through housing and supportive services. Through ARP, the City of San Bernardino was eligible to receive additional funds through the HOME Investment Partnerships Program (HOME-ARP) administered through the United States Department of Housing and Urban Development (HUD). Eligible activities include providing supportive services, affordable housing, non-congregate shelter (NCS), and tenant-based rental assistance (TBRA). Per 24 CFR 570.200(h) and 24 CFR 92.212(b), the City is required to amend the 2021-2022 Annual Action Plan as a request for HOME-ARP pre-award costs. In accordance with the City’s Citizen Participation Plan, a substantial amendment to the Annual Action Plan is required when the City: •Changes allocation priorities •Expects to carry out a new or existing activity while using funds that has not been covered by the Consolidated Plan or included in the approved Action Plan; •Change the purpose, scope, location, or beneficiaries of an activity (Any activity whose funding allocation is increased by more than 50% will constitute a substantial amendment. Proposed Amendment to 2021-2022 Annual Action Plan: The City will allocate additional $5,058,437 of HOME-ARP funds to assist in the financial support needed to design, construction, and operations of a Navigation Center. The Navigation Center will assist City’s vulnerable homeless populations with income stabilization services, job training, mental health services, case management and non- congregate shelter units. Lastly, the Navigation Center activity is aligned with the City’s Consolidated Plan, Continuum of Care initiatives to provide emergency, temporary accommodations for the City’s homeless populations in the City of San Bernardino. These activities are eligible under HOME-ARP and would further the City’s support   Packet Pg. 682 SUBSTANTIAL AMENDMENT 2021-2022 ANNUAL ACTION PLAN HOME-ARP FUNDS unhoused populations including homeless veterans, victims of domestic violence, those with mental and physical challenges and needs as well as underserved populations. Public Comments: The City of San Bernardino will address and incorporate comments received during the 30-day public commenting timeframe between February 6, 2023, and March 7, 2023. A public hearing will be held on March 1, 2023.   Packet Pg. 683 DRAFT HOME-ARP Allocation Plan for the City of San Bernardino MARCH 08, 2023 Michael Baker International   Packet Pg. 684 City of San Bernardino HOME-ARP Allocation Plan 1 Table of Contents Consultation.....................................................................................................................................2 Consultations Summary...............................................................................................................3 Homeless as defined in 24 CFR 91.5...........................................................................................4 At Risk of Homelessness as defined in 24 CFR 91.5..................................................................4 Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking..................................................................................................................5 Other populations requiring services or housing assistance to prevent homelessness and other populations at greatest risk of housing instability .......................................................................5 Public Participation..........................................................................................................................5 Needs Assessment and Gaps Analysis.............................................................................................6 Describe the size and demographic composition of qualifying populations within the PJ’s boundaries:...................................................................................................................................7 Homeless as defined in 24 CFR 91.5.......................................................................................7 At Risk of Homelessness as defined in 24 CFR 91.5..............................................................8 Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking...............................................................................................9 Other populations requiring services or housing assistance to prevent homelessness and other populations at greatest risk of housing instability ...................................................................9 Describe the unmet housing and service needs of qualifying populations, including but not limited to:.................................................................................................................................9 Identify and consider the current resources available to assist qualifying populations, including congregate and non-congregate shelter units, supportive services, TBRA, and affordable and permanent supportive rental housing: ...........................................................10 Identify any gaps within the current shelter and housing inventory as well as the service delivery system:.....................................................................................................................11 Identify the characteristics of housing associated with instability and an increased risk of homelessness if the PJ will include such conditions in its definition of “other populations” as established in the HOME-ARP Notice:.................................................................................12 Identify priority needs for qualifying populations:.................................................................12 Explain how the level of need and gaps in its shelter and housing inventory and service delivery systems based on the data presented in the plan were determined:.........................13 HOME-ARP Activities..................................................................................................................13 Describe the method for soliciting applications for funding and/or selecting developers, service providers, subrecipients and/or contractors and whether the PJ will administer eligible activities directly:.....................................................................................................13   Packet Pg. 685 City of San Bernardino HOME-ARP Allocation Plan 2 Use of HOME-ARP Funding...................................................................................................13 Additional narrative, if applicable:.......................................................................................14 HOME-ARP Production Housing Goals........................................................................................14 Preferences.....................................................................................................................................14 HOME-ARP Refinancing Guidelines............................................................................................15   Packet Pg. 686 City of San Bernardino HOME-ARP Allocation Plan 3 Consultation Before developing its plan, a PJ must consult with the CoC(s) serving the jurisdiction’s geographic area, homeless and domestic violence service providers, veterans’ groups, public housing agencies (PHAs), public agencies that address the needs of the qualifying populations, and public or private organizations that address fair housing, civil rights, and the needs of persons with disabilities, at a minimum. State PJs are not required to consult with every PHA or CoC within the state’s boundaries; however, local PJs must consult with all PHAs (including statewide or regional PHAs) and CoCs serving the jurisdiction. Summarize the consultation process: The City selected relevant service providers in the area that are best suited to provide detailed information on the service provision landscape for each qualifying population throughout the City. Each group was consulted using a uniform set of interview questions, discussing needs for all qualifying populations. The wide range of groups included fair housing groups, public housing agencies, veterans’ groups, domestic violence groups, public organizations addressing the needs of qualifying populations, and organizations addressing fair housing, civil rights, and the needs of persons with disabilities. List the organizations consulted, and summarize the feedback received from these entities. Agency/Org Consulted Type of Agency/Org Qualifying Population Served Method of Consultation Feedback Celebration City Community Development Private Agency All Interview See Summary. Lutheran Social Services Southern California Homeless Services All Interview See Summary. Partners Against Violence Domestic Violence All Interview See Summary. Step Up on Second Homeless Services, Agency that Addresses Fair Housing/Civil Rights/Persons with Disability Homeless, At- Risk of Homelessness Interview See Summary. Reentry Community and Housing Supportive Fair Housing, Homeless Services Homeless, At- Risk of Homelessness, Other Interview See Summary.   Packet Pg. 687 City of San Bernardino HOME-ARP Allocation Plan 4 Services Populations City of San Bernardino Public Agency All Interview See Summary. Deborah Robertson Foundation Private Agency Essential Services Interview See Summary. City of San Bernardino Police Public Agency Homeless, Victims of Domestic Violence Interview See Summary. San Bernardino County Continuum of Care Continuum of Care All Interview See Summary. United States Veterans Initiative – Inland Empire Veterans’ Group Other Populations, Homeless Interview See Summary. Housing Authority County of San Bernardino Public Housing Authority At-Risk of Homelessness Interview See Summary. Consultations Summary Interviews were conducted with service providers throughout the City using a uniform question set. The goal was to establish characteristics, needs, and gaps for the City’s current qualifying populations. When asked to rank the needs of qualifying populations, the top choice across all interviews was tied between non-profit operating funding and non-profit capacity building. This was closely followed by supportive services. These needs helped to guide this allocation. The least common choice of need for all interviews was Tenant-Based Rental Assistance (TBRA). The most commonly cited gap within service provision or housing inventory was found to be the lack of shelter beds. This common acknowledgement heavily aligns with forthcoming data in the Needs Assessment and Gap Analysis, which shows a large gap in shelter resources. Almost 97% of the City’s homeless are classified as unsheltered. A few other gaps that were commonly cited were also related to this issue, including Lack of Low-Barrier Shelter Policies, Non-Congregate Shelters for Individuals and Families, and Lack of Housing/Homeless Prevention Programs. The top three priority needs specifically for supportive services, according to respondents, were Drug Abuse/Addiction Services, Mental Health Services, and Life Skills Training. Once again, this adds strength to data in the following section, which shows that of the 989 homeless individuals in the City, 831 struggle with a disability or health condition, including mental health disabilities and substance use disabilities, among others. Organizations that were consulted indicated a rate of 62% likelihood to apply for Homeless Prevention Services Funding, but they were less favorable for housing counseling, which had a   Packet Pg. 688 City of San Bernardino HOME-ARP Allocation Plan 5 46% likelihood to apply for Housing Counseling Funding. All organizations except for 3 said housing counseling services such as housing search, landlord/tenant rights, budgeting, and credit education/repair programs have a significant impact on the community. One organization indicated No, and two others indicated that they were Not Sure. Organizations stated that help is needed from foundations and individual donors to help fill fundraising gaps that grants may not cover, and they stated a need for transitional housing. When asked about what sorts of projects would benefit the City, respondents most commonly said emergency housing was needed, but also that street outreach programs for the homeless and homelessness engagement teams may be useful for the City. For consultation results on each Qualifying Population, see the summaries below: Homeless as defined in 24 CFR 91.5 Nearly half of all consultations (46%) dealt directly with self-identified Homeless Service Providers, but the needs of this population were present in all consultations. Specifically, consultations pointed towards an additional need of support across shelter and housing programs. Lack of low-barrier shelters, and lack of shelters beds were two of the top three identified largest gaps for all consultations At Risk of Homelessness as defined in 24 CFR 91.5 Homelessness Prevention Services were the second most identified priority need for qualifying populations across all consultations, trailing behind Lack of Shelters, and 52% indicated they would be looking to apply for additional Homeless Prevention Services funding to fill existing gaps in capacity. This would help extend the existing shelter programs and provide additional services. These findings helped identify the shelter program as a recipient of this allocation. Additionally, 90+% of consultations saw organizations state that housing counseling services have a significant impact on our community. This specifically includes services such as housing search, landlord/tenant rights, budgeting, and credit education/repair programs. The Housing Authority County of San Bernardino ranked the Development of Affordable Housing (including rehabilitation of existing units) as the top priority for all qualifying populations. Additionally, they ranked Homeless Prevention Services as the top supportive services need for all qualifying populations. Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking   Packet Pg. 689 City of San Bernardino HOME-ARP Allocation Plan 6 When consultations shifted to identifying needs for specific supportive services, drug abuse/addiction services and mental health services were the most commonly cited response. Additionally, domestic violence services were cited as a top five need for supportive services. Additional data for this qualifying population is outlined in the Needs Assessment and Gap Analysis. Other populations requiring services or housing assistance to prevent homelessness and other populations at greatest risk of housing instability Drug Abuse/Addiction Services were the most commonly cited as a need for supportive services while Life Skills Training and Services for Persons with Disabilities was a commonly cited need for supportive services across all consultations. Additional Notes: San Bernadino City has completed a year of outreach with regards to homeless, homelessness needs and services as a foundation to the development of the proposed Navigation Center. This process also included financing strategy development for both construction and future operations. Public Participation PJs must provide for and encourage citizen participation in the development of the HOME-ARP allocation plan. Before submission of the plan, PJs must provide residents with reasonable notice and an opportunity to comment on the proposed HOME-ARP allocation plan of no less than 15 calendar days. The PJ must follow its adopted requirements for “reasonable notice and an opportunity to comment” for plan amendments in its current citizen participation plan. In addition, PJs must hold at least one public hearing during the development of the HOME-ARP allocation plan and prior to submission. For the purposes of HOME-ARP, PJs are required to make the following information available to the public: The amount of HOME-ARP the PJ will receive, $5,058,437 The range of activities the PJ may undertake: Development of Non-Congregate Shelter Describe the public participation process, including information about and the dates of the public comment period and public hearing(s) held during the development of the plan:   Packet Pg. 690 City of San Bernardino HOME-ARP Allocation Plan 7 San Bernardino conducted wide stakeholder interview and survey process with the primary consultation groups as well as other social service and interested organizations. Thirteen stakeholders participated in a survey process. Public meeting and comment period are as follows: •Public comment period: February 6, 2023 to Tuesday March 7, 2023 •Public hearing: March 15, 2023 Describe any efforts to broaden public participation: A PJ must consider any comments or views of residents received in writing, or orally at a public hearing, when preparing the HOME-ARP allocation plan. Public meetings were held with stakeholders, online survey and public comment in area newspapers and final public hearing. Summarize the comments and recommendations received through the public participation process: The public hearing was held March 1, 2023 for the substantial amendment for the Allocation plan. There were no public comment at that time. A 30-day public comment period was duly advertised for the substantial amendment. As of the date of this draft, there were no comments received or calls of concern during that time period. A public hearing will be held March 15th. If public comments are received the Allocation Plan will be updated to reflect the comments received. Summarize any comments or recommendations not accepted and state the reasons why: All comments were accepted. Needs Assessment and Gaps Analysis PJs must evaluate the size and demographic composition of qualifying populations within its boundaries and assess the unmet needs of those populations. In addition, a PJ must identify any gaps within its current shelter and housing inventory as well as the service delivery system. A PJ should use current data, including point in time count, housing inventory count, or other data available through CoCs, and consultations with service providers to quantify the individuals and families in the qualifying populations and their need for additional housing, shelter, or services. The PJ may use the optional tables provided below and/or attach additional data tables to this template.   Packet Pg. 691 City of San Bernardino HOME-ARP Allocation Plan 8 Homeless Needs Inventory and Gap Analysis Table Homeless Current Inventory (County)Homeless Population (City)Gap Analysis Family Adults Only Vets Family Adults Only # of Beds # of Units # of Beds # of Units # of Beds Family HH (at least 1 child) Adult HH (w/o child) Vets Victims of DV # of Beds # of Units # of Beds # of Units Emergency Shelter 282 90 448 -0 Transitional Housing 199 60 153 -15 Permanent Supportive Housing 714 240 977 -776 Other Permanent Housing - Sheltered Homeless -32 -- Unsheltered Homeless 989 166 166 Current Gap --811 - Suggested Data Sources: 1. Point in Time Count (PIT); 2. Continuum of Care Housing Inventory Count (HIC); 3. Consultation Housing Needs Inventory and Gap Analysis Table Non-Homeless (City) Current Inventory Level of Need Gap Analysis # of Units # of Households # of Households Total Rental Units 31,175 Rental Units Affordable to HH at 30% AMI (At-Risk of Homelessness)3,105 Rental Units Affordable to HH at 50% AMI (Other Populations)8,530 0%-30% AMI Renter HH w/ 1 or more severe housing problems (At-Risk of Homelessness) 8,295 30%-50% AMI Renter HH w/ 1 or more severe housing problems (Other Populations) 3,385 Current Gaps 8,635 Suggested Data Sources: 1. American Community Survey (ACS); 2. Comprehensive Housing Affordability Strategy (CHAS)   Packet Pg. 692 City of San Bernardino HOME-ARP Allocation Plan 9 Describe the size and demographic composition of qualifying populations within the PJ’s boundaries: Homeless as defined in 24 CFR 91.5 As identified in the 2022 Point In Time report prepared by the San Bernardino County Homeless Partnership, a total of 1,021 unhoused individuals lived in the City of San Bernardino. Of the 1,025 unhoused, 989 were unsheltered (96.9 percent) and 32 were sheltered (3.1 percent). Unsheltered homeless are individuals or families not housed in a shelter and whose primary nighttime residence is public/private place not designed for or ordinarily used as a regular sleeping accommodation for human beings. These are people living on the street or in makeshift shelters (tents, boxes), motorhomes (RV), vans, or cars. Sheltered homeless are individuals or families living in a supervised operated shelter to provide temporary living arrangement. Of the 989 unsheltered homeless in the City, volunteers were able to administer 537 surveys for additional information. This included demographic data and other important subpopulation information. Overall, 69.3 percent of individuals were male while 30.0 percent were female. The most common races were White (48.2 percent), Black or African American (24.4 percent) and Multiple Races (17.1 percent). In total, 39.1 percent of individuals were Hispanic or Latino. For age distribution, the most common age bracket was 25-39 (37.8 percent), followed by 40-49 (21.6 percent) and 55- 61 (14.2 percent). Seniors (62+) represented 10.4 percent of the homeless population. One-hundred forty-four (144) individuals became homeless for the first time during the past 12 months (26.8 percent). Additionally, disabilities are a common issue within the population. Specifically, 57.9 percent indicated a substance use problem disability, 44.1 percent indicated a mental health disability, 23.8 percent indicated a physical disability, and 11.9 percent indicated developmental disability. Other data points showed that 59 percent of those surveyed were Chronically Homeless. Also, 16.9 percent have a chronic health condition that is life threatening such as heart, lung, liver, kidney, or cancerous disease. And finally, there were 5.6 percent of individuals that were Veterans, 3.5 percent of individuals have HIV/AIDS, and 21 percent were released from a correctional institution withing the past year. At Risk of Homelessness as defined in 24 CFR 91.5 As shown above in the Housing Needs Inventory and Gap Analysis Non-Homeless Table, there are significant totals of at-risk homeless within San Bernardino. First, there are a total of 3,105 occupied or for-sale rental units within the City that are affordable for households making 0-30% AMI. However, there are 10,495 renters in the City in this income bracket. That creates a gap of 7,390 households that will struggle to find housing that is affordable within this income group, which is defined as at-risk of homelessness. Additionally, there are 5,425 occupied or for-sale rental units within the City that are affordable for households making 30-50% AMI. However,   Packet Pg. 693 City of San Bernardino HOME-ARP Allocation Plan 10 there are 6,670 renters in the City in this income bracket. That creates a gap of 1,245 households that will struggle to find housing that is affordable within this income group. The total of both income groups creates a total gap of 8,635 affordable units. There is also data indicating severe housing problems for renters within these groups, which puts some households at the risk of homelessness. Of these 10,495 renters in the 0-30% income group, 79.0 percent experience a severed housing problem, such as severe housing cost burden of 50%. Additionally, there are 6,670 renters in the 30-50% income group, and 50.7 percent of these renters experience a severe housing problem. For San Bernardino, households in these groups are more likely to be at-risk-of-homelessness. Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking The Point in Time count report specified 36 individuals that were victims of domestic violence within the County, and there were 36 of these individuals specifically in the City of San Bernardino. This population has increased since 2020. On top of this, The National Network for Ending Domestic Violence publishes annual reports by State for counts of domestic violence victims and cases. The 2021 Annual report found that across the State, 4,533 victims are served across the state each day. However, there were still 1,071 unmet requests for services across the State in 2021. Other populations requiring services or housing assistance to prevent homelessness and other populations at greatest risk of housing instability As described by some of San Bernardino’s other planning initiatives for community development, supportive housing services are needed for the City’s elderly (26,174 individuals, 11.9% of the City population), persons with disabilities (26,498 individuals, 12.5% of the City population), developmentally disabled persons, veterans (6,062 individuals, 3.8% of the City population), persons with addictions, and those living with HIV/AIDS. Elderly persons may require long-term supportive housing that includes long-term assisted living, transportation, and nursing care. While many disabled persons can live and work independently within a conventional housing environment, more severely disabled individuals require a group living environment where supervision is provided. The most severely disabled individuals may require an institutional environment where medical attention and physical therapy are provided. Those suffering from substance abuse might require counseling or case management and a short-term housing solution while undergoing rehabilitation. Other more challenging or on-going conditions might require supportive services that include long-term assisted living, as well as transportation and nursing care. Persons with HIV are often able to live independently as advances in medical treatment enable persons with HIV to lead normal lives. However, persons living with AIDS may require long-term supportive housing as their health conditions deteriorate and impact their ability to work. The Point-in-Time count identified numerous individuals in these populations that were homeless   Packet Pg. 694 City of San Bernardino HOME-ARP Allocation Plan 11 within the City of San Bernardino, as stated previously. There were 30 homeless veterans in the City, in addition to 19 homeless HIV/AIDS individuals, and 831 individuals with either a physical disability, developmental disability, mental health disability, substance use disability, or a chronic life-threatening heart condition. Describe the unmet housing and service needs of qualifying populations, including but not limited to: •Sheltered and unsheltered homeless populations; •Those currently housed populations at risk of homelessness; •Other families requiring services or housing assistance or to prevent homelessness; and, •Those at greatest risk of housing instability or in unstable housing situations: While homelessness is a complex problem with many causes, the high cost of housing is a significant contributor. Rising housing costs that have exceeded growth in wages, particularly for low-income households, put San Bernardino residents at risk of housing instability and homelessness. To measure the number of homeless persons in San Bernardino, the City relies on point in time surveys prepared by the San Bernardino Homeless Partnership. Population estimates for people experiencing homelessness are difficult to quantify. Census information is often unreliable due to the difficulty of efficiently counting a population without permanent residences. Given this impediment, local estimates of the homeless and anecdotal information are often the source of population numbers. As stated earlier however, there is a population of 1,021 homeless individuals in San Bernardino as of the 2022 Point in Time Count, and a potential gap of affordability for 8,635 at-risk households. There is also an extremely high proportion of at-risk families (79%) that already experience severe housing problems. These populations are in the most unstable housing situations. In addition to the at-risk population, there are gaps facing the existing homeless community. This is shown by the vast differences between the unsheltered and sheltered population within the City. As stated previously, there are 989 unsheltered in the City, opposed to only 32 sheltered. There is a lack of shelter beds for these individuals in the City. There also appears to be a lack of space in the City to house other populations, including those with disability, those fleeing from domestic violence, and veterans. In the City alone, there are 36 unhoused victims of domestic violence, 30 veterans, and 831 disabled/health condition individuals. This shows the gaps in the shelter network, and a lack of services for these individuals. Identify and consider the current resources available to assist qualifying populations, including congregate and non-congregate shelter units, supportive services, TBRA, and affordable and permanent supportive rental housing: The City of San Bernardino assists homeless populations through funding supportive service providers in the community. The City has traditionally provided funding through the ESG program   Packet Pg. 695 City of San Bernardino HOME-ARP Allocation Plan 12 to support services that include emergency shelter, rapid rehousing, homelessness prevention, street outreach, and HMIS costs. According to other City planning efforts, many organizations in San Bernardino, including businesses, civic groups, corporations, educational institutions, faith-based organizations, local government, and nonprofit agencies, provide financial assistance, food, health care, clothing, legal assistance, public assistance, rental assistance, and utility assistance at little or no cost. Mainstream benefit programs such as CalFresh, Medicaid/Medi-Cal, Social Security Disability Income (SSDI), Supplemental Security Income (SSI), and Veteran’s Benefits are available to homeless persons in the City. Additionally, the Homeless Provider Network (HPN) acts as an advocate for homeless populations and those at risk of becoming homeless. The HPN facilitates the collaboration between the public and private sectors to coordinate services to assist and prevent homelessness. Member organizations of the HPN meet monthly. Additionally, the Homeless Provider Network (HPN) acts as an advocate for homeless populations and those at risk of becoming homeless. The HPN facilitates the collaboration between the public and private sectors to coordinate services to assist and prevent homelessness. Member organizations of the HPN meet monthly. The City works with various agencies and provides referrals for services to homeless populations and those at risk of homelessness: •Community Action Partnership of San Bernardino County – provides homeless persons and those at risk of homelessness with temporary rental assistance, financial literacy education, and linkages to other support services. •Family Service Association of Redlands – provides emergency shelter (motel vouchers), wraparound services, and case management to prevent homelessness. •Lutheran Social Services – provides emergency shelter as a "bridge" to permanent housing, and wrap-around services to help homeless men 18 years and older to achieve self- sufficiency. •Step Up on Second – provides supportive services which begin with engagement and street outreach activities. •The Salvation Army Hospitality House – provides emergency shelter, referrals to permanent housing services, and meals to families and single females experiencing homelessness. •Other agencies in the County providing services to address homelessness include: o Catholic Charities San Bernardino o High Desert Homeless Services, Inc. o Victor Valley Family Resource Center Time for Change Foundation provides emergency shelter services to women and children as well as permanent housing. Helping Hands Pantry, a food bank, serves the communities of the County   Packet Pg. 696 City of San Bernardino HOME-ARP Allocation Plan 13 of San Bernardino; programs include a mobile food pantry and the College Student Food Assistance Program for students who do not have the resources to buy enough food. Identify any gaps within the current shelter and housing inventory as well as the service delivery system: As shown in the Housing Needs Inventory and Gap Analysis Homeless Table, there is a lack of Emergency Shelter, Transitional Housing, and Permanent Supportive Housing in the City. Within this area, there are only 45 emergency shelter beds, transitional housing beds, and Permanent Supportive Housing beds within this area despite there being 989 unsheltered homeless. This leaves a gap of 957 beds for individuals. As stated in the other Non-Homeless Table, there is a gap of affordable housing options for 8,635 households. Identify the characteristics of housing associated with instability and an increased risk of homelessness if the PJ will include such conditions in its definition of “other populations” as established in the HOME-ARP Notice: These populations would include Seniors, Large Families, Persons with Disabilities, Veterans, Victims of Domestic Violence, Persons with HIV/AIDS, and Single Parents. These populations align with characteristics of housing need, as identified by the City, including but not limited to: Seniors – Due to their fixed incomes, increasing medical needs and mobility challenges, seniors require accessible housing in close proximity to healthcare facilities and ease of transit. Seniors also need rehabilitation services to maintain and improve the condition of their housing. Additionally, seniors often need rental assistance through housing vouchers due to their fixed incomes. Disabled - Disabled individuals would require not only housing assistance in the form of rental and mortgage subsidies, but also group housing with accessibility features that would be ideal for people with mobility issues and sensory limitations. Their housing needs will also require ease of access to transit, shopping and healthcare facilities. They may also require specialized medical care and education, especially for the developmentally disabled. Additionally, disabled individuals who have been discharged from medical/healthcare facilities might also need transitional housing. Large Families and Families with Female Heads of Households - Large families need low-cost housing that require a minimum of 3 bedrooms to accommodate all members in the home sufficiently. Families with Female Heads of Households may not only require affordable housing assistance, but those with children also need accessibility to healthcare facilities and educational institutions. Child Care assistance for those who are not of school-going age may also be required. These same needs may also apply to large families   Packet Pg. 697 City of San Bernardino HOME-ARP Allocation Plan 14 Identify priority needs for qualifying populations: This planning effort, among others from the city, highlights current needs for qualifying populations and needs for the entire City. This includes identified priority needs to: •Preserve and Rehabilitate Housing •Expand Homeownership •Provide Homeless and Homeless Prevention Services •Create New Affordable Rental Housing •Promote Economic Development (Micro-Enterprise) •Improve Facilities and Infrastructure •Pursue Fair Housing Explain how the level of need and gaps in its shelter and housing inventory and service delivery systems based on the data presented in the plan were determined: These gaps were determined from data provided by Point in Time Counts, Housing Inventory Counts, American Community Survey (ACS) Data, and Comprehensive Housing Affordability Strategy (CHAS) Data. The first two sources showed the existing homeless populations, and the existing housing they may access. The next two data sources identified additional populations based on income and housing problems. These populations are at high risk of becoming homeless. There is a need for housing inventory and service systems to account for these at-risk populations as well, to avoid becoming overrun. HOME-ARP Activities Describe the method for soliciting applications for funding and/or selecting developers, service providers, subrecipients and/or contractors and whether the PJ will administer eligible activities directly: The City of San Bernardino intends to work with operators to design, construct, and operate a shelter and navigation center to be located in the City. If any portion of the PJ’s HOME-ARP administrative funds were provided to a subrecipient or contractor prior to HUD’s acceptance of the HOME-ARP allocation plan because the subrecipient or contractor is responsible for the administration of the PJ’s entire HOME-ARP grant, identify the subrecipient or contractor and describe its role and responsibilities in administering all of the PJ’s HOME-ARP program: Not applicable.   Packet Pg. 698 City of San Bernardino HOME-ARP Allocation Plan 15 PJs must indicate the amount of HOME-ARP funding that is planned for each eligible HOME- ARP activity type and demonstrate that any planned funding for nonprofit organization operating assistance, nonprofit capacity building, and administrative costs is within HOME-ARP limits. The following table may be used to meet this requirement. Use of HOME-ARP Funding Funding Amount Percent of the Grant Statutory Limit Supportive Services Acquisition and Development of Non- Congregate Shelters $4,299,672 Tenant Based Rental Assistance (TBRA) Development of Affordable Rental Housing Non-Profit Operating %5% Non-Profit Capacity Building %5% Administration and Planning $758,765 %15% Total HOME ARP Allocation $5,058,437 Additional narrative, if applicable: Describe how the characteristics of the shelter and housing inventory, service delivery system, and the needs identified in the gap analysis provided a rationale for the plan to fund eligible activities: The City of San Bernardino intends to allocate its HOME-ARP funds evenly to one activity: 1) Non-Congregate Shelter and Navigation Center ($4,299,672) The city owns a 2.48 acre property that will be adaptively reused and converted for a non- congregate homeless shelter that will include space for needed homeless and homeless prevention services. The City intends to competitively bid through an RFP process the project’s design planning and engineering, and construction. The City also intends to interview area social services and shelter operators to find a qualified operator for the shelter. The Navigation Center will include space for a variety of operation needs and needed services: •Identification documentation, mailbox, storage locker, and pet kennel area •Income stabilization guidance •Job training/placement workstation and training area •Office space for mental health services, substance abuse recovery, case management, and housing navigation HOME-ARP Production Housing Goals   Packet Pg. 699 City of San Bernardino HOME-ARP Allocation Plan 16 Estimate the number of affordable rental housing units for qualifying populations that the PJ will produce or support with its HOME-ARP allocation: Not Applicable Describe the specific affordable rental housing production goal that the PJ hopes to achieve and describe how it will address the PJ’s priority needs: Not Applicable Preferences Identify whether the PJ intends to give preference to one or more qualifying populations or a subpopulation within one or more qualifying populations for any eligible activity or project: The City’s project will have a preference for the Homeless Qualifying Population, but it will be accessible for all qualifying populations. Existing Coordinated Entry System (CES) preferences will be used, pursuant to the operator’s current waiting list. Currently, the city’s CES system has preference for Veterans, Chronically Homeless, Unaccompanied Women, and Unaccompanied Youth. If a preference was identified, explain how the use of a preference or method of prioritization will address the unmet need or gap in benefits and services received by individuals and families in the qualifying population or category of qualifying population, consistent with the PJ’s needs assessment and gap analysis: The preference of CES is consistent with the Needs Assessment and Gap Analysis, this will help fill the gap of shelter beds in the City. This will help give the City more options for dealing with its homeless population, and further service its priority populations. Other detailed explanations of its CES prioritization indices can be found here: https://wp.sbcounty.gov/dbh/sbchp/wp- content/uploads/sites/2/2019/04/CES-HEAP-Orientation.pdf If a preference was identified, describe how the PJ will use HOME-ARP funds to address the unmet needs or gaps in benefits and services of the other qualifying populations that are not included in the preference: The Plan is also supporting navigation services that will be open to all qualifying populations to help fill gaps and unmet needs. The property operations shall work in tandem with the Continuum of Care and the Coordinated Entry System to with regards to case selection.   Packet Pg. 700 City of San Bernardino HOME-ARP Allocation Plan 17 HOME-ARP Refinancing Guidelines If the PJ intends to use HOME-ARP funds to refinance existing debt secured by multifamily rental housing that is being rehabilitated with HOME-ARP funds, the PJ must state its HOME- ARP refinancing guidelines in accordance with. The guidelines must describe the conditions under with the PJ will refinance existing debt for a HOME-ARP rental project, including: •Establish a minimum level of rehabilitation per unit or a required ratio between rehabilitation and refinancing to demonstrate that rehabilitation of HOME-ARP rental housing is the primary eligible activity Not Applicable •Require a review of management practices to demonstrate that disinvestment in the property has not occurred; that the long-term needs of the project can be met; and that the feasibility of serving qualified populations for the minimum compliance period can be demonstrated. Not Applicable •State whether the new investment is being made to maintain current affordable units, create additional affordable units, or both. Not Applicable •Specify the required compliance period, whether it is the minimum 15 years or longer. Not Applicable •State that HOME-ARP funds cannot be used to refinance multifamily loans made or insured by any federal program, including CDBG. Not Applicable •Other requirements in the PJ’s guidelines, if applicable: Not Applicable   Packet Pg. 701 Resolution No. 2023-028 Resolution No. 2023-028 February 1, 2023 Page 1 of 6 RESOLUTION NO. 2023-028 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA PROCLAIMING THE EXISTENCE OF A LOCAL EMERGENCY CAUSED BY CONDITIONS AND THREATENED CONDITIONS OF HOMELESSNESS WITHIN THE CITY OF SAN BERNARDINO, WHICH IF NOT CORRECTED, CONSTITUTES AN IMMINENT AND PROXIMATE THREAT TO THE SAFETY OF PERSONS AND PROPERTY IN THE CITY WHEREAS, San Bernardino Municipal Code Section 2.46.050(A) designates the City Manager as the Director of Emergency Services (“Director”); and WHEREAS, San Bernardino Municipal Code Section 2.46.090(A)(1) empowers the Director to request the Mayor and City Council to proclaim the existence or threatened existence of a “local emergency”; and WHEREAS, San Bernardino Municipal Code Section 2.46.020 defines an “emergency” as an “actual or threatened existence of conditions of disaster or of extreme peril to the safety of persons and property within [the] jurisdiction…which conditions are or are likely to be beyond the control of services, personnel, equipment, and facilities of the City, requiring the combined forces of other political subdivisions to combat”; and WHEREAS, California Senate Bill 330, approved by the Governor on October 9, 2019, provided that California has a housing supply and affordability crisis of historic proportions, where “[t]he consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the state’s environmental and climate objectives”; and WHEREAS, the California legislature has acknowledged the importance of combating homelessness and the crisis of housing supply which is supported by California Labor Code Section 1720(c)(4) where prevailing wage rates do not apply to the construction of rehabilitation of affordable housing units for low or moderate income persons; and WHEREAS, in efforts to combat the housing crisis, the California Legislature has recognized that local governments play a key role in the development of affordable housing, evidenced by California Government Code Section 65584, which mandates California cities, towns and counties to undertake all necessary actions to promote and facilitate the development of housing for its residents, for all income levels; and WHEREAS, in conjunction with the State’s directives to combat homelessness and address the housing crisis, the City of San Bernardino (“City”) has designated significant resources   Packet Pg. 702 Resolution No. 2023-028 Resolution No. 2023-028 February 1, 2023 Page 2 of 6 to address homelessness in the City, but the threat to life and property remains at stake beyond the control of the services, personnel, equipment, and facilities of this City, requiring the combined forces of other political subdivisions to combat this crisis; and WHEREAS, the City has at any given time approximately 1,350 people experiencing homelessness Citywide; and WHEREAS, according to City’s 2022 Point in Time Count, the number of people experiencing homelessness in the City increased dramatically in recent years, with an overall rise in homelessness of 175% since 2017; and WHEREAS, people experiencing homelessness suffer disproportionately from mental and physical health ailments and require assistance from the City of San Bernardino, San Bernardino County Behavior Health Department, and other local, state, and federal health agencies and non- profit organizations to provide the necessary public services; and WHEREAS, the homelessness crisis confronting the City has grown both incrementally and exponentially, leading to death, illness, and deplorable living conditions; and WHEREAS, the State of California’s COVID-19 State of Emergency, which has provided resources to keep many San Bernardino residents from falling into homelessness, ends on February 28, 2023, thus requiring immediate action in order to create replacement and additional housing and shelter, and in order to support the necessary infrastructure and laws required to protect and provide that shelter and housing; and WHEREAS, the displacement of the number of people living on the streets of the City today is a daily recurring emergency, empowering the City Council to declare a state of emergency, no less than if the emergency was caused by an earthquake, fire, or flood; and WHEREAS, the City’s ability to mobilize local resources, coordinate interagency response, accelerate procurement of housing units, use mutual aid, and seek assistance and potential reimbursement by the State and Federal governments will be critical to successfully responding to this homelessness crisis; and WHEREAS, during the pendency of the existence of a local emergency, the City Council shall retain its full authority to consider a variety of City ordinances to codify the measures necessary to address this homelessness crisis; and WHEREAS, on October 27, 2022 the City Council conducted a Homeless Workshop; and WHEREAS, during the Homeless Workshop staff provided a goal for the City to have approximately 595 shelter beds. The City currently has only 170 active shelter beds, and is in immediate need of approximately 425 shelter beds to reach the goal of 595 shelter beds; and   Packet Pg. 703 Resolution No. 2023-028 Resolution No. 2023-028 February 1, 2023 Page 3 of 6 WHEREAS, notwithstanding that the City Council has been and is acting with urgency, including implementing of a Homeless Action Plan which provides a roadmap to house San Bernardino residents and building an unprecedented number of supportive housing units and shelter beds, an emergency declaration is necessary to mobilize resources, save lives, and provide for the public health, welfare, and safety of all; and WHEREAS, the City will be setting up a Homeless Task Force, made up of City leaders, department heads, service providers and advocates that will meet regularly to monitor the Homeless Action Plan’s progress; and WHEREAS, the City has responded to the rapid increase in its homeless population with unprecedented investments into homelessness solutions, including a commitment of over $20 million from its American Rescue Plan Act resources to fund the Homeless Action Plan; and WHEREAS, the magnitude of loss of life, the continued and disproportionate impact of the COVID-19 pandemic, and the persistent discriminatory impacts of a lack of housing warrant and necessitate that the City Council declare the existence of a local emergency; and WHEREAS, the benefits of this emergency declaration, coupled with past and future actions by the City Council to address the homelessness crisis, will help ensure that this local emergency will be of a temporary nature. 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. Pursuant to California Government Code Section 8630 and San Bernardino Municipal Code section 2.46.090(A)(1), the City Council hereby finds and proclaims the existence of a local emergency caused by conditions or threatened conditions of homelessness in San Bernardino which, if not corrected, constitutes a threat to the safety of persons and property within the territorial limits of the City beyond the control of the services, personnel equipment, and facilities of the City. SECTION 3. The City Manager is hereby authorized to furnish information, to enter into agreements, including, but not limited to, applications and agreements for grant funding, and to take all actions necessary to obtain emergency assistance from State and federal agencies to implement preventive measures to protect and preserve the City within the scope of the local emergency hereby declared. Section 2.46.110 of the San Bernardino Municipal Code provides that any expenditures made in connection with the emergency activities, including mutual aid activities, shall be deemed conclusively to be for the direct protection and benefit of the inhabitants and property of the City. City staff are hereby directed to provide the City Council with a report of actions taken under this Resolution at the next practicable opportunity, and no less than on a monthly basis.   Packet Pg. 704 Resolution No. 2023-028 Resolution No. 2023-028 February 1, 2023 Page 4 of 6 SECTION 4. The City shall coordinate its efforts to address this proclaimed emergency with the other local jurisdictions, the County of San Bernardino, the State of California, and the federal government. SECTION 5. The City of San Bernardino requests the Governor and State Legislature to declare a state of emergency to combat homelessness and direct resources to support the efforts of major cities in the State of California to address the problem. SECTION 6. This Proclamation of Emergency shall sunset on February 1, 2024, subject to being renewed. The setting of a specific time frame allows for actions to be taken to make permanent, necessary structural changes. Pursuant to California Government Code Section 8630, the Mayor and City Council shall, by minute action, review the need for continuing the local emergency at least once every 60 days until it terminates the local emergency. SECTION 7. Pursuant to Government Code section 3100, in protection of the health and safety and preservation of the lives and property of the people from emergencies which result in conditions of extreme peril to life, property and resources, all public employees are hereby declared disaster service workers subject to such disaster service activities as may be assigned to them by their superiors or by law. SECTION 8. 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 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 1st day of February, 2023. _______________________ Helen Tran, Mayor City of San Bernardino /s/Helen Tran   Packet Pg. 705 Resolution No. 2023-028 Resolution No. 2023-028 February 1, 2023 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. 706 Resolution No. 2023-028 Resolution No. 2023-028 February 1, 2023 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. 2023-028, adopted at a regular meeting held at the 1st day of February, 2023 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this 2nd day of February 2023. ______________________________ Genoveva Rocha, CMC, City Clerk X X X X X X X /s/Genoveva Rocha   Packet Pg. 707 This space for filing stamp only OR #: O R A N G E C O U N T Y R E P O R T E R ~ SINCE 1921 ~ 600 W. Santa Ana Blvd., Suite 205, Santa Ana, California 92701-4542 Telephone (714) 543-2027 / Fax (714) 542-6841 PROOF OF PUBLICATION (2015.5 C.C.P.) State of Calif ornia ) County of Orange ) ss Notice Type: Ad Description: I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the ORANGE COUNTY REPORTER, a newspaper published in the English language in the City of Santa Ana, and adjudged a newspaper of general circulation as defined by the laws of the State of California by the Superior Court of the County of Orange, State of California, under date of June 2, 1922, Case No. 13,421. That the notice, of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: Executed on: 10/10/2004 At Riverside, California I certify (or declare) under penalty of perjury that the foregoing is true and correct. Signature SAN BERNARDINO COUNTY SUN 473 E CARNEGIE DR #200, SAN BERNARDINO, CA 92408 (909) 889-9666 (909) 884-2536 SB 3667860 Lorraine Wyche CITY OF SAN BERNARDINO/DEVELOPMENT SER 300 NORTH D ST #300 SAN BERNARDINO, CA - 92418 GPN - GOVT PUBLIC NOTICE Public Notice HOME-ARP Substantial Amend_Action Plan I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the SAN BERNARDINO COUNTY SUN, a newspaper published in the English language in the city of SAN BERNARDINO, county of SAN BERNARDINO, and adjudged a newspaper of general circulation as defined by the laws of the State of California by the Superior Court of the County of SAN BERNARDINO, State of California, under date 06/27/1952, Case No. 73081. That the notice, of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: 02/09/2023 02/09/2023 SAN BERNARDINO !A000006229336! Email PUBLIC NO TICE NOTI CE OF 30-DAY P UB LIC COMM ENT PERIO DS AND P UBLIC HEARINGS TO BE HELD BY THE CITY OF San Ber nardino REGA RDING SUB MISSION OF THE HOM E-AM ERICA N RESCUE PLAN (A RP )A LLO CATION PLAN AND THE SUBSTANTIAL AMENDMENTS TO THE 2022-2023 ANNUA L A CTIO N PLA N NOTICE IS HEREBY GIVEN that the City of San Bernardino (City) City Council,on March 1,2023,and March 15,2023,will hold Public Hearings and Public Comment periods for two separate actions: March 1,2023:1)Submission of the HOME-ARP Allocation and Plan March 15,2023:2)Approval of the Substantial Amendments to the FY 2022-2023 Annual Action Plan On March 11,2021,the American Rescue Plan Act of 2021 (ARP)was signed into law and allocated federal ARP funds to local cities through the HOME Investment Partnerships Program (HOME).As a recipient of HOME funds,the City of San Bernardino is eligible to receive a HOME-ARP allocation in the amount of $5,048,437.To receive its HOME-ARP funds,the City must develop a HOME-ARP Allocation Plan and submit a HOME-ARP Allocation Plan to HUD as a substantial amendment to the City's previously approved Fiscal Year 2022-2023 Annual Action Plan.The HOME-ARP Allocation Plan describes how the City intends to distribute HOME-ARP funds to address the needs of qualifying populations.The City has prepared a HOME-ARP Allocation Plan,which requires the City to approve a Substantial Amendment to its 2022- 2023 Annual Action Plan,which is now available for public review. The City has been allocated $5,058,437 in HOME-ARP funding under the ARP Act funding allocation.The HOME-ARP funding will be used for development of a needed Navigation Center to support and assist the homeless in the City. The Navigation Center space will include non-congregate living units and space for essential homeless services.HUD allows 15% ($758,765.55)of the HOME-ARP funds to be used for activity administration. Citizens are encouraged to review the draft Substantial Amendment, copies of the HOME-ARP Allocation Plan will be available for review commencing Monday,February 6, 2023 to Tuesday,March 7,2023,at   Packet Pg. 708 the City of San Bernardino,201 N.E Street,San Bernardino,CA 92401,or the City's website: https://www.sbcity.org/city_hall/co mmunity_economic_development/ho using,or they can be requested by contacting,Trina Perez (909)384- 7272,x3063. 2/9/23 SBS-3667860#   Packet Pg. 709 PUBLIC HEARING City of San Bernardino Request for Council Action Date:March 15, 2023 To:Honorable Mayor and City Council Members From:Charles E. McNeely Interim City Manager; Barbara Whitehorn, Agency Director of Administrative Services Department:Finance Subject:Imposing Liens on Parcels of Real Property for Uncollected Business Registration Fees (All Wards) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Conduct a public hearing to receive public comment on the matter; and 2. Adopt Resolution No 2023-050 of the Mayor and City Council of the City of San Bernardino, California, imposing liens on certain parcels of real property for unpaid Business Registration taxes and penalties; and 3. Direct the Agency Director of Administrative Services to remove any properties from the Business Registration Lien List (Exhibit A to the Resolution) which are resolved prior to the hearing. Background On November 21, 1990, the Mayor and City Council adopted Ordinance MC-756 adding section 5.04.076 to the Municipal Code relating to liens for delinquent business license fees. San Bernardino Municipal Code Section 5.04.076 enables unpaid taxes and penalties for Business Registration to become an assessment on the associated property if not collected after proper notification to the owner. Discussion Unregistered properties are identified through multiple sources, including a Homeowners Exemption listing received from the County of San Bernardino, newly opened water department accounts, closed rental property Business Registration accounts, code enforcement efforts, and citizen notification. These potentially unregistered accounts are contacted using the property’s mailing address provided by the County of San Bernardino and the Water Department. The properties listed in   Packet Pg. 710 Exhibit A include newly identified rental properties and delinquent accounts that have provided no response to the City’s collection efforts. The Business Registration staff makes multiple attempts to contact property owners to gain compliance with the municipal code before a property is entered into the lien process. The initial letter informs the property owner that rental properties are considered a business and a registration certificate is required. This letter also informs the owner that if the property is not a rental to indicate the status of the property. If a response is not received, a second letter is sent advising the owner to comply with the registration requirement or contact the Business Registration office to discuss the status of the property. If there is still no response after the second letter, a certified letter is sent indicating the same information. If there is no response to the certified letter, a lien hearing notice is mailed with a Business Registration application to allow the owner to comply or close the account before proceeding into the lien process. If letters are returned because the owner's address is unknown, the City will continue the same process using the new address collected by the United States Post Service. If no forwarding address is provided by the USPS, the matter is dismissed. It is important to note that property owners are provided with multiple opportunities to make payment or inform Business Registration that the property is not operating as a rental. Staff works through the long process outlined above to bring property owners into compliance before placing liens to ensure that the City does not place liens inappropriately. Exhibit A to the Resolution (attached) represents accounts that had not come into compliance as of February 27, 2023, when this report was submitted into the agenda process. Those accounts that were addressed between February 27, 2023, and March 15, 2023, will be removed from the list that is forwarded to the County; liens will not be placed on those properties. 2021-2025 Strategic Targets and Goals The approval of the placement of liens on the subject properties for unpaid Business Registration taxes and penalties aligns with Key Target No. 1: Improved Operational and Financial Stability by implementing, maintaining, and updating a fiscal accountability plan. The program helps to ensure greater compliance with the municipal code within the business community and will generate additional revenue through this enhanced compliance effort by Business Registration staff. Fiscal Impact There is no fiscal impact to the budget associated with this action. The anticipated amount of revenue to be collected through the lien process is $126,132, an estimate of which was included in the FY 2023/2024 Business Registration revenue budget.   Packet Pg. 711 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Conduct a public hearing to receive public comment on the matter; and 2. Adopt Resolution No 2023-050 of the Mayor and City Council of the City of San Bernardino, California, imposing liens on certain parcels of real property for unpaid Business Registration taxes and penalties; and 3. Direct the Agency Director of Administrative Services to remove any properties from the Business Registration Lien List (Exhibit A to the Resolution) which are resolved prior to the hearing. Attachments Attachment 1: Resolution No. 2023-050 Attachment 2: Resolution No. 2023-050- Exhibit A Attachment 3: Notice of Public Hearing Ward: All Wards Synopsis of Previous Council Actions: October 19, 2022 Mayor and City Council adopted Resolution No. 2022-220, imposing liens on certain parcels of real property located within the City of San Bernardino for uncollected Business Registration fees. May 18, 2022 Mayor and City Council adopted Resolution No. 2022-93, imposing liens on certain parcels of real property located within the City of San Bernardino for uncollected Business Registration fees. February 3, 2021 Mayor and City Council adopted Resolution No. 2021-18, imposing liens on certain parcels of real property located within the City of San Bernardino for uncollected Business Registration fees.   Packet Pg. 712 Resolution No. 2023-050 Resolution No. 2023-050 March 15, 2023 Page 1 of 3 2 2 5 2 RESOLUTION NO. 2023-050 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, IMPOSING LIENS ON CERTAIN PARCELS OF REAL PROPERTY LOCATED WITHIN THE CITY OF SAN BERNARDINO FOR UNCOLLECTED BUSINESS REGISTRATION FEES WHEREAS, section 5.04.076 of the San Bernardino Municipal Code requires whenever appropriate fees and penalties cannot be collected after proper notification to the owner, the total uncollected fees and penalties shall become an assessment; and WHEREAS, owners of properties listed in Exhibit “A” were issued a first notice, final notice, certified notice and a Lien Hearing notice of the rental property requirements for the City of San Bernardino. Due notice was given to the person or persons having an interest in said property and pursuant to the notice dated February 27, 2023, a hearing was held by the Mayor and City Council to hear protests and to assess the fees imposed on said property. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1.The above recitals are true and correct and are incorporated herein by this reference. SECTION 2.The matter having now come before the Mayor and City Council for confirmation of the imposition of the liens imposed, the fees set forth on Exhibit “A” are found to have been uncollectible after proper notification to the property/business owner pursuant to proceedings under Section 5.04.076 of the San Bernardino Municipal Code. SECTION 3.The statements of fees on file with the Finance Department are hereby confirmed and adopted as special assessment against the properties listed in Exhibit “A” hereto. SECTION 4.The Agency Director of Administrative Services is directed to remove paid liens and those addressed prior to the meeting of March 15, 2023, from Exhibit “A” prior to forwarding the list to the County. 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.   Packet Pg. 713 Resolution No. 2023-050 Resolution No. 2023-050 March 15, 2023 Page 2 of 3 2 2 5 2 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 15th day of March 2023. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney   Packet Pg. 714 Resolution No. 2023-050 Resolution No. 2023-050 March 15, 2023 Page 3 of 3 2 2 5 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 Resolution No. 2023-050, adopted at a regular meeting held on the 15th day of March 2023 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2023. Genoveva Rocha, CMC, City Clerk   Packet Pg. 715 Exhibit A ORDERNOFIRST NAME ADDRESS 1 CITY STATEPOSTAL CODE ADDRESS2 ACCT#APN AMOUNT PRIORTOLIENWARD 1 Ivonne Gonzalez 1098 E 2nd St Apt B San Bernardino CA 92408-1272 1098 E 2nd St 950965 0279 301 58 570 420 1 2 Juanluis Conteras 1365 W 2nd St San Bernardino CA 92410-1620 1365 W 2nd St 80151 0138 283 34 570 420 1 3 ATC Building Co 333 S Grand Ave Ste 700 Los Angeles CA 90071-1585 334 W 3rd St 51429 0135 161 37 1050 900 1 4 Chao Zhu Mai/Xiap Huan Mai 14127 Anada St Baldwin Park CA 91706-1510 932 W 8th St 73705 0139 262 10 522 372 1 5 Cinthya Esquerra 2052 E Mardino St West Covina CA 91791-1518 1067 W 8th St 65204 0139 301 06 342 192 1 6 SPSSM Investments III Lp 4900 Santa Anita Ave Ste 2C El Monte CA 91731-1490 407 W 9th St 78245 0140 211 12 700 550 1 7 Realicore LLC 395 N E St Ste 104 San Bernardino CA 92401-1537 451 W 9th St 78729 0140 211 45 834 684 1 8 Jovany & Gabriel Garcia/Guillermina Fuentes18828 Malkoha St Lake Matthews CA 92570-6549 608 W 10th St 73592 0140 033 14 834 684 1 9 Rodrigo Martinez 260 W 11th St San Bernardino CA 92410-3608 260 W 11th St 73948 0140 072 16 618 468 1 10 Victor Mora 3346 Irvington Ave San Bernardino CA 92407-1933 131 S Alameda Ave 78646 0279 236 11 1038 888 1 11 Echo Realty LLC 1012 Ginsberg Ct Riverside CA 92506-7500 715 N Arrowhead Ave 78434 0140 291 22 342 192 1 12 Trinity Financial services LLC 12220 E Mile Rd Warren MI 48093-0000 823 N Arrowhead Ave 78657 0140 221 30 630 480 1 13 Viicente Cruz/Wanda Rodriguez 899 E Baseline St San Bernardino CA 92410-3904 899 E Baseline St 78726 0278 031 33 480 330 1 14 PPAL Inc 1431 E Washington St Colton CA 92324-4611 1708 W Baseline St 78790 0139 031 16 450 300 1 15 Gonzalo Mendoza/Ma Del Rocio Martinez Gonzalez14509 California Ave Baldwin Park CA 91706-1743 1085 Bobbett Dr 971759 0278 031 04 290 144 1 16 Selene Hernandez 610 W Regent St Apt 5 Inglewood CA 90301-4752 225 Bryant St 78691 0135 252 05 720 570 1 17 Muhammad Nasir 1403 N Fair Oaks Ave Ste 2 Pasadena CA 91103-1893 1053 N D St 78718 0140 063 01 960 810 1 18 Ceasar Matias 1305 N D St San Bernardino CA 92405-4736 1305 N D St 76963 0145 213 10 762 612 1 19 Gethin Williams PO Box 173859 Denver CO 80217-3859 1500 N D St 69887 0145 142 28 594 444 1 20 Jessie Uribe-Ixta 859 Davidson Ave San Bernardino CA 92411-2733 859 Davidson Ave 78693 0139 243 08 480 330 1 21 Imelda & Gustavo Gonzalez 5989 Elmwood Rd San Bernardino CA 92404-3241 1090 N F St 61101 0140 032 09 846 696 1 22 Mary Evelyn Duran Revocable Lv Tr 16742 Ramona Ave Fontana CA 92336-2009 1023 Main St 7856 0138 272 18 750 600 1 23 Exclusive Financial Group 13265 Catalpa St Etiwanda CA 91739-9521 674 N Mount Vernon Ave 77298 0138 042 16 582 432 1 24 Angelica & Jesus Mora 1058 N Mountain View Ave San Bernardino CA 92410-3622 1058 N Mountain View Ave 69436 0140 102 05 798 648 1 25 Yogan Aguayo 929 W Olive St San Bernardino CA 92411-2320 931 W Olive St 75870 0139 132 11 342 192 1 26 Arthur Gradias 940 W Olive St San Bernardino CA 92411-2321 933 W Olive St 7932 0139 132 10 762 612 1 27 Markeith & Anissa Smith 24097 Old Country Rd Moreno Valley CA 92557-4003 290 E Orange St 77458 0140 091 16 594 444 1 28 Gabriel Sanchez/Reyes Rodriguez Lv Tr 17285 Wood Rd Riverside CA 92508-9556 364 E Orange St 78686 0280 142 12 534 384 1 29 Vianca Miranda 671 Perris St San Bernardino CA 92411-2821 671 Perris St 78647 0138 063 25 990 840 1 30 Raul Vanegas 1088 E Rialto Ave San Bernardino CA 92408-1222 1088 E Rialto Ave 69609 0279 311 34 582 432 1 31 1159 N Sierra Way Trust 1159 N Sierra Way San Bernardino CA 92410-3637 1159 N Sierra Way 60211 0140 081 24 534 384 1 32 Miguel Salinas 1327 Vine St San Bernardino CA 92411-2640 821 Spruce St 41935 0134 052 17 342 192 1 33 Ralph G & Grace J Rangel Fam Tr 1155 Spruce St San Bernardino CA 92411-2717 1147 Spruce St 40867 0138 124 07 342 192 1 34 Sonya Branch 1674 Porter St San Bernardino CA 92407-6742 1398 Spruce St 76968 0138 112 15 606 456 1 35 Brian Davila LTD LLC 6733 Ramblewood Ct Eastvale CA 92880-3965 164 E Temple St 78673 0140 171 32 720 570 1 36 Gary Simpson Non-Trust Custodial IRA 4717 Roadrunner Rd Fontana CA 92336-1127 1025 N Tippecanoe Ave 76527 0278 073 29 786 636 1 37 Jose Sanchez 248 W 16th St San Bernardino CA 92405-4615 248 W 16th St 78666 0146 102 18 590 444 2 38 Jose Cineros 1095 Loma Vista St Pomona CA 91768-1432 101 E 18th St 77169 0146 082 09 690 540 2 39 Jose Montano 1720 N Summit Ave Pasadena CA 91103-1843 225 E 18th St 933179 0146 092 02 438 288 2 40 Leslie Morrison 351 W 19th St San Bernardino CA 92405-3901 339 W 19th St 7028 0145 063 20 342 192 2 41 Anna & Hector Ruiz 740 W 21st St San Bernardino CA 92405-3819 740 W 21st St 78685 0145 013 05 822 672 2 42 Sa-an Kubeyinje 8033 W Sunset Blvd Ste 411 Los Angeles CA 90046-2401 1931 N Arrowhead Ave 76965 0146 042 02 570 420 2 43 Alicia De Torres 16125 Fairview Ave Fontana CA 92336-2485 1503 Belle St 74114 0146 153 01 558 408 2 44 Brad Dunn Family Trust PO Box 825 Bridgeport CA 92517-0825 2139 Belle St 75364 0146 032 05 606 456 2 45 Pedro & Marlen Rodriguez 5405 Monte Sr San Bernardino CA 92404-1120 1260 Canyon Rd 7303 0273 181 09 618 468 2 46 Timothy Anaya 901 E Washington St Apt 198 Colton CA 92324-8186 1345 Canyon Rd 78698 0273 172 33 330 180 2   Packet Pg. 716 Exhibit A 47 HT Holding LLC 7810 Bolton Ave Riverside CA 92503-3123 1525 N D St 72243 0145 143 12 908 758 2 48 Franklin Granados/Mayra Duenas 9006 Frankfort Ave Fontana CA 92335-6022 1299 N E St 78724 0145 241 34 522 372 2 49 Ronald Hicks 1405 Blythe Ave Highland CA 92346-2808 1417 Eucalyptus Dr 68900 1191 221 26 690 540 2 50 First Coastal Trust 2222 Michelson Dr Ste 123 Irvine CA 92612-1332 1324 N G St 75262 0145 193 11 2360 2210 2 51 Gonzalez Family Revocable Liv Tr 1229 Ameluxen Ave Hacienda Heights CA 91745-1904 1270 Genevieve St 959009 0146 222 22 282 132 2 52 261 E Highland LLC PO Box 2939 San Bernardino CA 92406-2939 261 E Highland Ave 967536 0146 031 28 342 192 2 53 Yang-88 Enterprises LLC 100 Atlantic Ave Apt 905 Long Beach CA 90802-5150 265 W Highland Ave 76980 0146 011 26 450 300 2 54 Novalk LLC 2271 La Quilla Dr Chatsworth CA 91311-1282 2210 E Highland Ave 76352 0285 176 12 490 340 2 55 Mario Almegor & Isrrael Flores 1370 Hillside Dr Apt 3 San Bernardino CA 92404-5555 1370 Hillside Dr 73545 0147 224 27 596 446 2 56 Leticia Vazquez 1228 N Lugo Ave San Bernardino CA 92404-5227 1228 N Lugo Ave 7304 0146 231 20 606 456 2 57 Adolf Chavez/Moises Delgado 1480 N Lugo Ave Apt B San Bernardino CA 92404-5272 1480 N Lugo Ave 965431 0146 171 18 342 192 2 58 Irma Rizo 9859 Via Esperanza Alta Loma CA 91737-3600 2114 N Lugo Ave 7186 0146 021 25 330 180 2 59 Alfonso & Irma Diaz PO Box 1334 Upland CA 91785-1334 2120 N Lugo Ave 51548 0146 021 24 342 192 2 60 Jennifer Colindres 125 E 19th St San Bernardino CA 92404-4709 632 Niles St 77711 0147 171 14 596 446 2 61 David & Linda Pham 7204 Silverwood Dr Corona CA 92880-7238 2350 Osbun Rd Unit 97 953019 0150 501 42 294 144 2 62 Jesus Martinez 2160 Pepper Dr Highland CA 92346-2424 1526 N Pershing Ave 72131 0146 131 12 582 432 2 63 Enrique Carvajal 2795 Serrano Rd San Bernardino CA 92405-3049 2795 Serrano Rd 76953 0148 102 11 618 468 2 64 Anges Thorson Trust 100 Clove Pl Brea CA 92821-3302 676 E Trenton St 68070 0147 055 14 582 432 2 65 Pacific Forest LLC 1798 N Sierra Way San Bernardino CA 92405-4161 1505 N Waterman Ave 77221 0147 062 33 690 540 2 66 AMF1278 LLC 273 Lipzzan Dr San Jacinto CA 92582-3259 723 S Allen St 78709 0136 401 19 1110 960 3 67 Solemon Niazi 325 W Hospitality Ln Ste 100 San Bernardino CA 92408-3211 1290 S Amos St 74015 0136 442 25 290 140 3 68 Silalahi Revocable Living Tr 11426 Via Lagos Loma Linda CA 92354-3851 2731 Annapolis Cir 58489 0141 493 33 294 144 3 69 In Seok Jeon/Hae Yung Jeon 1041 Raynor St Colton CA 92324-7520 2748 Annapolis Cir 56362 0141 493 40 606 456 3 70 Eder Chaidez 1726 N Pershing Ave San Bernardino CA 92405-4136 1390 Birch St 78643 0137 102 17 480 330 3 71 Perricom 3 LLC 6621 E Pacific Coast Hwy Ste 280 Long Beach CA 90803-4242 247 S Boyd St 960033 0136 051 58 1048 898 3 72 NMSBPCSLDHB PO Box 2460 Saratoga CA 95070-0460 804 E Brier Dr 73509 0281 301 22 1597 1447 3 73 Frank Garcia/Griselda Garcia 1192 Chestnut St San Bernardino CA 92410-2602 1192 Chestnut St 60387 0137 171 29 858 708 3 74 Commercenter Enterprises LLC PO Box 69465 Los Angeles CA 90069-0465 1824 Commercenter Cir 78712 0141 451 13 1235 1085 3 75 BZ Capital Investments LLC/Invisible Pension Plan3240 Mission Inn Ave Riverside CA 92507-4069 2223 S Gardena St 78640 0283 032 13 522 372 3 76 BZ Capital Investments LLC/Invisible Pension Plan3240 Mission Inn Ave Riverside CA 92507-4069 2255 S Gardena St 78639 0283 032 50 510 360 3 77 Vanderbilt Property LLC 11440 Chandler Blvd Ste 1600 N Hollywood CA 91601-3137 412 W Hospitality Ln 78708 0141 372 21 1837 1687 3 78 Hasmik Haroutyunian 14653 Valley Vista Blvd Sherman Oaks CA 91403-4110 370 S I St 76977 0137 191 11 1158 150 3 79 Hasmik Haroutyunian 14653 Valley Vista Blvd Sherman Oaks CA 91403-4110 390 S I St 76978 0137 191 17 798 648 3 80 Seritage Growth Properties LP/Seritage SRC Finance LLC500 5th Ave Ste 1530 New York NY 10110-1502 100 Inland Center Dr 954617 0136 531 01 2324 2274 3 81 Finalyson Logistics Assets LLC 5 Bryant Park Ste 2800 Manhattan NY 10018-0000 1089 E Mill St 75840 0136 351 16 11076 10926 3 82 Moshi & Marine Saleh 2865 Park Haven Dr Rialto CA 92376-7244 2865 Park Haven Dr 66894 0142 534 25 594 444 3 83 Connie Herrera 7526 Hemlock Ave Hesperia CA 92345-4117 1435 Richardson St 6630 0281 172 23 342 192 3 84 Martin & Maria Vargas 774 S Dallas Ave San Bernardino CA 92410-5406 847 S Rexford St 56355 0142 632 19 510 360 3 85 US Bank Trust Na 3630 Peachtree Rd NE Ste 1500 Atlanta GA 30326-1598 948 Scenic Dr 76261 0141 221 10 354 204 3 86 Joaquin Zuniga 175 S Tamarisk Ave Rialto CA 92376-6727 175 S Tamarisk Ave 77444 0142 242 03 558 408 3 87 Staci & Brian Williams 7914 Ruby Ct Highland CA 92346-5748 127 S Terrace Rd 52106 0142 721 33 330 180 3 88 First Coastal Trust 2222 Michelson Dr Ste 123 Irvine CA 92612-1332 5098 N 3rd Ave 78618 0265 111 18 1708 1558 4 89 First Coastal Trust 2222 Michelson Dr Ste 123 Irvine CA 92612-1332 5150 N 3rd Ave 78619 0265 111 17 1708 1558 4 90 Adam & Carmen Castaneda 5823 Green Pine Ct Etiwanda CA 91739-2240 202 E 43rd St 960473 0154 231 18 510 360 4 91 Omar Elzein 550 W Mesa Ave Rialto CA 92376-3281 4756 Acacia Ave 78757 0154 131 23 450 300 4 92 ASJD LLC 5503 N Valles Dr San Bernardino CA 92407-2367 5034 Acacia Ave 78734 0154 472 16 390 240 4 93 Lidia Stevens 7828 Boxwood Ct Highland CA 92346-5755 1415 E Alto Dr 75769 0155 081 06 594 444 4   Packet Pg. 717 Exhibit A 94 Talmade Dean & Rose Ann Thompson Liv Tr7787 W Sunset Blvd Los Angeles CA 90046-3911 3160 Del Rosa Ave 63272 0155 111 57 510 360 4 95 Maria Vazqez Family Tr 12058 186th St Artesia CA 90701-5778 3826 Electric Ave 56617 0271 081 03 330 180 4 96 Maria Vazqez Family Tr 12058 186th St Artesia CA 90701-5778 3864 Electric Ave 44903 0271 081 04 360 210 4 97 Mayra Rosas 3486 N Golden Ave San Bernardino CA 92404-6617 3486 N Golden Ave 72293 0153 334 10 582 432 4 98 Elias Anoun 3463 Holly Circle Dr Highland CA 92346-1838 3463 Holly Circle Dr 76771 0285 351 04 342 192 4 99 Michelle Webley 3303 Mulberry St Riverside CA 92501-2942 4275 N Mountain View Ave 76115 0154 221 06 510 360 4 100 Yaely Zunta Vargas 11961 Sandy Dr Anaheim CA 92804-6764 2169 Pepper Dr 966162 1191 282 38 762 612 4 101 Severiana Jordan 4411 Quail Canyon Rd San Bernardino CA 92404-1515 4411 Quail Canyon Rd 973028 0155 011 04 858 708 4 102 Javier Barroso Jr 3304 Rainbow Ln Highland CA 92346-2580 3304 Rainbow Ln 77375 1191 291 21 510 360 4 103 Deepak Khanna 1931 Reedy Ave Highland CA 92346-2573 1931 Reedy Ave 70498 1191 315 24 690 540 4 104 DY & G Investments LLC 310 N Indian Hill Blvd Ste 612 Claremont CA 91711-4611 4360 N Sierra Way 68969 0154 221 34 1062 912 4 105 Oliver Maldonado 763 Campus Way San Bernardino CA 92405-3822 4667 N Stoddard Ave 75805 0154 142 04 330 180 4 106 Louden/Invitation Homes PO Box 4698 Logan UT 84323-4698 2455 Willow Dr 65623 0155 531 29 342 192 4 107 Lucas & Amber Reed 2700 W Lugonia Ste 5211 Redlands CA 92374-0000 3464 Willow Dr 77438 0285 961 04 510 360 4 108 Marc Cummings PO Box 3337 Big Bear Lake CA 92315-3337 742 W 36th St 40040 0151 173 05 342 192 5 109 Nhieu Ngo/Xuan Doung 25711 Hinckley St Loma Linda CA 92354-3927 2189 W 48th St 8828 0266 391 18 354 204 5 110 Adam & Carmen Castaneda 5823 Green Pine Ct Etiwanda CA 91739-2240 517 Acacia Way 60547 0152 012 59 558 408 5 111 Dallin/Invitation Homes 1131 W Warner Rd Ste 102 Tempe AZ 85284-2891 5048 Alta Dr 66142 0266 501 40 342 192 5 112 Griselda Ortiz 1425 Breckenridge Ct San Bernardino CA 92407-5001 1425 Breckenridge Ct 77625 0266 541 27 582 432 5 113 Barbon Family Trust/C Barbon Trust 3205 Cricklewood St Torrance CA 90505-6604 4519 Brookfield St 69163 0266 621 16 750 600 5 114 Sergio Villa 842 Bussey St San Bernardino CA 92405-2826 842 Bussey St 78749 0151 122 06 510 360 5 115 Circle Roas Revocable Liv Tr 3451 W 79th St Los Angeles CA 90043-4909 3489 Circle Rd 67711 0151 161 14 582 432 5 116 Raquel Barbon 3205 Cricklewood St Torrance CA 90505-6604 4971 Citadel Ave 49405 0266 551 44 834 684 5 117 Commercenter Enterprises LLC PO Box 69465 Los Angeles CA 90069-0465 1820 Commercenter Cir 78713 0141 451 14 630 480 5 118 Timothy & Lucia Pytell 7143 Winterwood Ln Highland CA 92346-5434 1683 Grossmont Rd 69949 0266 271 06 546 396 5 119 Isidra Clark 6397 Angels Peak Dr San Bernardino CA 92407-5193 2584 Jeffrey Pine Ct 8197 0261 241 68 570 420 5 120 Magnusen Living Trust 8780 19th St Ste 149 Alta Loma CA 91701-4608 3025 Jo An Dr 60024 0261 311 11 354 204 5 121 Ching Pak 1460 Kendall Dr Unit 72 San Bernardino CA 92407-2893 1460 Kendall Dr Unit 72 77627 0266 412 72 570 420 5 122 IH4 Property West Lp/Invitation Homes 1131 W Warner Rd Ste 102 Tempe AZ 85284-2891 6114 Laura Ln 951409 0261 321 89 330 180 5 123 Melvin Avenue Trust 6928 N Melvin Dr San Bernardino CA 92407-5173 6928 N Melvin Dr 68205 0261 621 20 1050 900 5 124 Mark Hidalgo 592 E Baseline St San Bernardino CA 92410-3909 1433 Morgan Rd 973743 0266 257 05 1038 888 5 125 Brad Dunn Family Trust PO Box 825 Bridgeport CA 93517-0825 3042 Roberds Ave 75354 0148 313 07 606 456 5 126 Martha Lopez 2094 Shorter St San Bernardino CA 92407-4690 2094 Shorter St 960517 0266 471 03 590 444 5 127 Edward & Jenise Bush PO Box 151 Elk Grove CA 95759-0151 1806 W Sycamore St 78801 0151 321 02 990 840 5 128 Jimmy Johnson/Monique Coleman 4909 Village Green Way San Bernardino CA 92407-2948 5439 N Valles Dr 65659 0151 361 33 534 384 5 129 Conan Grigsby 4879 Village Green Way San Bernardino CA 92407-2948 4879 Village Green Way 76209 0266 531 30 690 540 5 130 Denise Gianni 16109 Dianthus Ave Fontana CA 92335-5515 6344 N Walnut Ave 57420 0261 261 06 342 192 5 131 Athereane Mclaughlin 4577 Western Creek Cir San Bernardino CA 92407-4976 4577 Western Creek Cir 78129 0265 351 49 750 600 5 132 Richard Trang/Yen Banh/Ana Ngo/Quang Trang6143 Dakota Ave Alta Loma CA 91737-6926 2794 9th St 73900 0142 371 11 690 540 6 133 Eulalio Soto 1272 Turrill Ave San Bernardino CA 92411-1831 1015 W 13th St 78670 0144 231 03 480 330 6 134 MPT of San Bernardino-Vibra 1000 Urban Center Dr Ste 501 Vestavia AL 35242-2225 1760 W 16th St 77762 0269 151 40 7537 7387 6 135 Victor Ramos 1545 W 20th St San Bernardino CA 92411-1204 1545 W 20th St 76915 0143 033 33 594 444 6 136 Jack & Maxine Ramsey 17671 Peachtree Ln Carson CA 90746-7489 1581 W 21st St 76320 0143 032 28 846 696 6 137 Luis Perez 534 N A St Oxnard CA 93030-4906 1809 W 30th St 44172 0268 403 34 1050 900 6 138 Billy Warren Bowend Revocable Tr 1760 Davidson St Loma Linda CA 92354-1711 1760 Davidson St 77436 0281 232 32 690 540 6 139 Evaristo Escobar 1337 1/2 W Evans St San Bernardino CA 92411-1717 1337 W Evans St 67181 0143 102 25 762 612 6 140 Blue Bay Ventures LLC 188 King St Ph 7 San Francisco CA 94107-4900 1949 W Gilbert St 78743 0143 294 12 354 204 6   Packet Pg. 718 Exhibit A 141 Jacob Villagrana 2005 W Lincoln Ave San Bernardino CA 92411-1026 2005 W Lincoln Ave 67341 0269 322 06 480 330 6 142 Joseph Le/Hoa Dinh 2548 Highridge Dr Chino Hills CA 91709-4890 1342 Magnolia Ave 937527 0143 125 03 330 180 6 143 US Bank Trust LSF9 3630 Peachtree Rd NE Ste 1500 Atlanta GA 30326-1598 1719 Magnolia Ave 967225 0143 263 08 354 204 6 144 1700 Old Grove LLC 313 S Armel Dr Covina CA 91722-3746 1156 Ramona Ave 965926 0139 052 16 618 468 6 145 A & D Entertainment 180 E Main St Ste 101 Tustin CA 92780-4428 1079 Tiajuana St 77233 0139 045 04 618 468 6 146 Juan Cuadros & Silvia Arellano 1135 Tiajuana St San Bernardino CA 92411-2141 1135 Tiajuana St 58270 0139 052 03 522 372 6 147 Stephen Carter 2805 Maple St Rialto CA 92376-4524 2805 Union St 63963 0142 412 05 330 180 6 148 Marcos Ochoa 1247 E Swanee Ln West Covina CA 91790-1849 439 W 23rd St 62604 0149 221 07 590 444 7 149 Mireya Guardado 1033 W 25th St San Bernardino CA 92405-3111 1033 W 25th St 76992 0148 231 16 582 432 7 150 Maria Chacon 11282 Walnut St Redlands CA 92374-7610 794 E 27th St 73489 0272 171 33 330 180 7 151 Juvenal Zepeda 535 Transit Ave Riverside CA 92407-1716 347 W 29th St 951217 0149 084 01 558 408 7 152 Sam Shoucair 2959 N Alameda Ave San Bernardino CA 92404-2562 2959 N Alameda Ave 68359 0153 313 07 618 468 7 153 Elizabeth Stearns Living Trust 221 E Eldorado Ln Las Vegas NV 89123-1159 2364 N Arrowhead Ave 64550 0149 212 11 354 204 7 154 Nivardo Fuentes 3587 N Arrowhead Ave San Bernardino CA 92405-2227 3587 N Arrowhead Ave 77714 0152 071 21 582 432 7 155 Jason Ramirez/Norma Ruano 2999 Westminster Ave Ste 265 Seal Beach CA 90740-5379 3555 Broadmoor Blvd 76989 0153 062 33 546 396 7 156 Ryan Ngov 1319 Alpine Cir Baldwin Park CA 91706-5667 2251 Cedar St 77093 0150 242 01 594 444 7 157 Ronald & Barbara Hicks 1405 Blythe Ave Highland CA 92346-2808 2765 N Crescent Ave 929053 0149 102 18 594 444 7 158 Tracey Okubo Trust 3679 N D St San Bernardino CA 92405-2105 3679 N D St 61959 0152 023 06 354 204 7 159 Thomas & Melissa Calabretta 6737 Lindley Ave Whittier CA 90601-3943 5530 N Dahila St 8850 0266 511 03 750 600 7 160 National Capital One Investments LLC PO Box 1377 Beverly Hills CA 90213-1377 3039 N E St 78784 0152 193 18 480 330 7 161 Anika Inc 1889 Nixon Ave Placentia CA 92870-7446 2720 Genevieve St 71012 0150 131 20 282 132 7 162 Salvador Mora 185 E American Ave Claremont CA 91711-5503 2980 Harrison St 63130 0153 284 38 558 408 7 163 Lorena Galvez PO Box 2442 San Bernardino CA 92406-2442 348 W Highland Ave 77015 0149 222 17 762 612 7 164 David Pinedo/Jocelyn Castanon 2907 Lincoln Dr San Bernardino CA 92405-2900 2907 Lincoln Dr 78748 0149 012 17 480 330 7 165 Laura Duarte/Genaro Gomez 211 S Citrus Ave Covina CA 91723-2624 3323 N Mayfield Ave 78753 0152 113 14 610 468 7 166 Tin Do 1365 Cindee Ln Colton CA 92324-4841 3572 Parkside Dr 56942 0153 062 04 546 396 7 167 Mercury Land & Development LP 15130 Elm St Hesperia CA 92345-3810 3551 N Pershing Ave 9846 0152 072 18 762 612 7 168 Louden/Invitation Homes 8665 E Hartford Dr Ste 200 Scottsdale AZ 85255-7807 1234 Pumalo St 66222 0150 433 06 342 192 7 169 Ramon & Rachael Flores 1730 W 19th St San Bernardino CA 92411-1106 2385 Roxbury Dr 70831 0150 342 10 590 444 7 170 Francisco Zepeda 1135 W 26th St San Bernardino CA 92405-3117 2464 N Sierra Way 69355 0140 132 15 750 600 7 171 Humble Beginnings Trust PO Box 908 Highland CA 92346-0908 2884 N Sierra Way 78766 0150 052 13 546 396 7 172 Henry Young 7068 Spencer Ct Etiwanda CA 91739-1690 3827 N Sierra Way 76668 0154 283 04 360 210 7 173 Louden/Invitation Homes PO Box 4698 Logan UT 84323-4698 2764 Valencia Ave 66214 0150 292 11 342 192 7 126,132   Packet Pg. 719   Packet Pg. 720 1 1 5 3 DISCUSSION City of San Bernardino Request for Council Action Date:March 15, 2023 To:Honorable Mayor and City Council Members From:Charles E. McNeely, Interim City Manager; Daniel Hernandez, Agency Director of Public Works, Operations and Maintenance Department:Public Works Subject:Adopt Ordinance No. MC-1612 Amending Section 8.24.050 of the Municipal Code (Notification of Administrative Hearing) (All Wards) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Ordinance No. MC-1612 amending Section 8.24.050 of the San Bernardino Municipal Code regarding notification of administrative hearing decision and final report of delinquent solid waste charges to affected persons. Background On April 1, 2016, as part of the City of San Bernardino’s Bankruptcy Recovery Plan, the City of San Bernardino contracted with Burrtec Waste Industries to provide solid waste, recycling, and right of way clean up services. On March 1, 2023, the City Council introduced, read by title only, and waived further reading of Ordinance No. MC-1612 amending Section 8.24.050 of the San Bernardino Municipal Code regarding notification of administrative hearing decision and final report of delinquent solid waste charges to affected persons. Code Section 8.24.050 provides that in the event the bill for solid waste collection services together with any late charge thereon is not paid in full within thirty days after the date of mailing the notice of delinquency to the property owner and tenant pursuant to Chapter 8.24.050(B), the franchised hauler may assign such a bill to the City for collection through the initiation of special assessment and lien proceedings.   Packet Pg. 721 1 1 5 3 Discussion Pursuant to San Bernardino Municipal Code Section 8.24.050(E), property owners and tenants are mailed a notice of an administrative hearing to impose a special assessment and lien against a property for unpaid delinquent solid waste charges. Following the administrative hearing, San Bernardino Municipal Code Section 8.24.050(F) provides that the City Manager shall send a copy of the administrative hearing decision and final report of delinquent solid waste charges to both Council and the property owners and tenants. Following the hearing, a letter with a website link to the order and report is mailed to the property owners and tenants. In an effort to streamline the administrative hearing process, which will provide information more expediently, consolidate the number of mailings sent to the property owners and tenants to one letter, reduce staff administrative time, and save on printing and mailing costs, the City wishes to amend San Bernardino Municipal Code Section 8.24.050 to allow the City to provide the website link to property owners and tenants in advance, by including the link in the mailed notice of the administrative hearing regarding the proposed special assessment and lien to be imposed against the property receiving solid waste services. 2021-2025 Strategic Targets and Goals Amending San Bernardino Municipal Code Section 8.24.050 aligns with Key Target No. 1b: Continue to seek opportunities to secure long-term revenue sources as special assessment and lien proceedings enable the waste hauler to continue providing mandatory waste removal services throughout the City despite non-paying customers and saves on printing and mailing costs. Fiscal Impact No fiscal impact to the City. The City of San Bernardino and Burrtec Waste will continue to recover the amounts owed for services provided to the customers. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Ordinance No. MC-1612 amending Section 8.24.050 of the San Bernardino Municipal Code regarding notification of administrative hearing decision and final report of delinquent solid waste charges to affected persons. Attachments Attachment 1 Ordinance No. MC-1612 Ward: All Wards   Packet Pg. 722 1 1 5 3 Synopsis of Previous Council Actions: March 1, 2023 The Mayor and City Council introduced, read by title only, and waived further reading of Ordinance No. MC-1612 amending Section 8.24.050 of the Municipal Code (Notification of Administrative Hearing) November 7, 2016 The Mayor and City Council adopted Ordinance No. MC- 1431 amending San Bernardino Municipal Code, Title 8, Health and Safety, Article 24.   Packet Pg. 723 Ordinance No. MC-1612 1 2 3 1 4 ORDINANCE NO. MC-1612 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING SECTION 8.24.050 OF THE SAN BERNARDINO MUNICIPAL CODE REGARDING NOTIFICATION OF ADMINISTRATIVE HEARING DECISION AND FINAL REPORT OF DELINQUENT SOLID WASTE CHARGES TO AFFECTED PERSONS WHEREAS, the City of San Bernardino, California (“City”), is a chartered city and municipal corporation, duly organized under the California Constitution and laws of the State of California; and WHEREAS, the San Bernardino Municipal Code section 8.24.050(F) provides that following an administrative hearing to impose a special assessment and lien against a property for unpaid delinquent solid waste charges, the City Manager shall send a copy of the administrative hearing decision and final report of delinquent solid waste charges to both Council and the delinquent property owners and customers; and WHEREAS, following the administrative hearing, the City mails a letter to property owners and customers with a website link to the order and report; and WHEREAS, the City wishes to amend San Bernardino Municipal Code section 8.24.050(F) to allow the City to provide the website link to property owners and customers in advance, by including the link in the mailed notice of the administrative hearing regarding the proposed special assessment and lien to be imposed against the property receiving solid waste services to provide information more expediently and save on printing and mailing costs. THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1.The above recitals are true and correct and are hereby incorporated herein by this reference. SECTION 2.The City Council hereby amends sections 8.24.050 to read in full as follows: “8.24.050 Failure to Pay. A. Failure to Pay for Solid Waste Collection Service. The franchised hauler shall be entitled to payment from the property owner, tenant or any other subscribing person on behalf of the property owner for any services rendered or to be rendered. Solid waste collection service shall not be discontinued for residential customers by reason of any failure to pay the charges for such service. The franchised hauler may temporarily suspend services if a commercial customer has been delinquent in payment for a period of at least forty-five (45) days in accordance with the terms of the franchise agreement. B. Notification of Delinquency.   Packet Pg. 724 Ordinance No. MC-1612 2 2 3 1 4 1. Customers (owners or tenants) who have not remitted required payment within forty-five (45) days after the date of billing shall be notified by the franchised hauler on forms that contain a statement that if payment is not received within fifteen (15) days from the date of the notice, the delinquent and unpaid charges, including a 10% penalty and 1.5% monthly interest, may be placed on the San Bernardino County annual secured property tax rolls and that any amount owing would then become a lien on the property. Contractor shall provide such notice to customers via U.S. Mail to the current billing address on file. 2. All notices pursuant to this division shall be made to the property owner, if the property owner is the subscriber, or else to the property owner and tenant or any other subscribing person on behalf of the property owner. The form of delinquency notice shall be approved by the City Manager. C. Assignment of Delinquent Account. In the event the bill for Solid Waste collection service together with any late charge thereon is not paid in full within thirty (30) days after the date of mailing the notice of delinquency to the property owner and tenant pursuant to Chapter 8.24.050(B), the franchised hauler may assign such bill to the City for collection through the initiation of lien and special assessment proceedings. The assignment shall include the name and address of the property owner and tenant, the assessor's parcel number of the premises, the period of Solid Waste collection service covered by the bill, the amount owed for such service, the amount of any late charge and such other information as requested by the City Manager, together with a copy of the notices of delinquency mailed or otherwise delivered to the property owner and tenant with proof of service. D. Initiation of Special Assessment and Lien. Upon the City's receipt of the assignment from the franchised hauler, the City Manager shall prepare a report of delinquent Solid Waste collection service charges and initiate proceedings to create a special assessment and lien on the premises to which the Solid Waste collection service was provided. The City Manager shall fix a time, date and place for an administrative hearing by the City Manager to consider any objections or protests to his or her report. E. Notice of Administrative Hearing on Special Assessment and Lien. The City Manager shall send written notice of the administrative hearing to the property owner and tenant of the premises against which the special assessment and lien will be imposed at least ten (10) days prior to the hearing date. The notice shall be mailed to each person to whom such premises is assessed in the latest equalized assessment roll available on the date the notice is mailed, at the address shown on said assessment roll or as known to the City Manager. A copy of the notice shall also be mailed to the franchised hauler. Said notice shall set forth the amount of delinquent Solid Waste collection service charges, the amount of any late charge thereon, and shall inform the recipient of the possible levy of a special assessment   Packet Pg. 725 Ordinance No. MC-1612 3 2 3 1 4 and lien on the premises and administrative charges as provided in this division. Said notice shall also inform the property owner and tenant of the time, date and place of the administrative hearing and the subsequent public hearing to be conducted by the Common Council, include a link to the webpage on which the administrative hearing order and final report in 8.24.050(F) will be posted and advise the property owner and tenant of his or her right to appear at both the administrative hearing and the public hearing to state his or her objections to the report or the proposed special assessment and lien. F. Administrative Hearing on Special Assessment and Lien. At the time and place fixed for the administrative hearing, the City Manager shall hear and consider any objections or protests to his or her report. The City Manager may correct or modify the report as he or she deems appropriate, based upon the evidence presented at the hearing, and shall post a copy of the decision on the City website. The City Manager shall thereupon submit a final report to the Common Council for confirmation and shall post a copy of such final report on the City website. G. Public Hearing on Special Assessment and Lien. The Common Council shall conduct a public hearing to consider the City Manager's final report at the time and place set forth in notice described in Chapter 8.24.050(E). At such hearing, any interested person shall be afforded the opportunity to appear and present evidence as to why the final report, or any portion thereof, should not be confirmed. The Common Council's review shall be limited to the administrative record and evidence presented at the City Manager's administrative hearing. The Common Council may adopt, revise, reduce or modify any charge shown in the final report or overrule any or all objections as it deems appropriate, based upon the evidence presented at the hearing. If the Common Council is satisfied with the final report as rendered or modified, the Common Council shall confirm such final report by resolution. The decision by the Common Council on the final report and any objections or protests thereto, shall be final and conclusive. H. Recording of Lien. Upon confirmation by the Common Council of the final report, the City Manager shall cause to be recorded in the office of the recorder for San Bernardino, a lien against each premises described in the final report for the amount of delinquent Solid Waste collection service charges and late charges as confirmed by the Common Council by resolution. The lien shall also include such additional administrative charges as established by resolution of the Common Council. All affected property owners shall be notified by the City Manager that the delinquent Solid Waste collection service charges, late charges and administrative charges are due and payable to the City and that said lien has been recorded. I. Levy of Special Assessment.   Packet Pg. 726 Ordinance No. MC-1612 4 2 3 1 4 Upon confirmation by the Common Council of the City Manager's final report, as rendered or modified, the delinquent Solid Waste collection service charges, late charges and administrative charges contained therein shall constitute a special assessment levied upon the premises against which such charges have been imposed. The City Manager shall file a copy of the final report, together with a certified copy of the resolution by the Common Council confirming the same, with the tax collector for San Bernardino County with instructions to enter the delinquent Solid Waste collection service charges, late charges and administrative charges as special assessments against the respective premises described in the City Manager's lien report. The tax collector shall include such special assessment on the next regular bill for secured property taxes sent to the property owner. J. Collection of Special Assessment. The special assessment shall be collected at the same time in the same manner and frequency and by the same persons as ordinary municipal taxes, and shall be subject to the same interest and penalties and the same procedure of sale as provided for delinquent ordinary municipal taxes. The special assessment shall be subordinate to all existing special assessment liens previously imposed upon the premises and paramount to all other liens except those for state, county and municipal taxes, with which it shall be upon parity. Each special assessment shall continue until all of the delinquent Solid Waste collection service charges, late charges and administrative charges due and payable thereon are paid in full. All laws applicable to the levy, collection and enforcement of municipal taxes shall be applicable to such special assessment.” SECTION 3.Effective Date. This Ordinance shall take effect thirty (30) days after its adoption. SECTION 4.Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance, or any part thereof, is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase be declared unconstitutional. If for any reason any portion of this Ordinance is found to be invalid by a court of competent jurisdiction, the balance of this Ordinance shall not be affected. SECTION 5.Certification. The City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California. SECTION 6.CEQA. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines (California Code of Regulations, Title 14, Chapter 3) because it has no potential for resulting in physical change to the environment, directly or indirectly.   Packet Pg. 727 Ordinance No. MC-1612 5 2 3 1 4 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this XXth day of , 2023. __________________________________ Helen Tran, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, City Clerk Approved as to form: __________________________________ Sonia Carvalho, City Attorney   Packet Pg. 728 Ordinance No. MC-1612 6 2 3 1 4 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Ordinance No. MC-1612, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the 1st day of March 2023. Ordinance No. MC-1612 was approved, passed and adopted at a regular meeting held the XX day of , 2023 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2023. ______________________________ Genoveva Rocha, CMC, City Clerk   Packet Pg. 729 ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS City of San Bernardino Request for Council Action Date:March 15, 2023 To:Honorable Mayor and City Council Members From:Damon L. Alexander, Council Member, 7th Ward Department:Council Office Subject:City Organization Realignment (All Wards) – Council Member Alexander   Packet Pg. 730