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HomeMy WebLinkAbout05-19-2021 Agenda PacketIMPORTANT COVID-19 NOTICE In an effort to protect public health and prevent the spread of COVID-19 and to enable appropriate social distancing , the Mayor and City Council meeting is not open f or public attendance at this time. All meeting s will be held via tele-conf erence. To view the live meeting: Select the link to view the live-stream on the City’s website: https://sbcity.tiny.us/MCC051921 Or Spectrum & Frontier customers may view the broadcast on Channel 3. You may also view the archived video on the City’s website the day after the meeting. To provide public comments: Submit a written comment online via http://sbcity.tiny.us/comments ; Or Email your written comment to publiccomments@sbcity.org before 4:00 p.m. the day of the scheduled meeting; or Call (909)384-5208 and leave a recorded comment not to exceed three (3) minutes before 4:00 p.m. the day of the scheduled meeting. The subject line of your email should include the meeting date, w hether your comment is for the Special Meeting, Closed Session, or Open Session, and w hether it is for public comment or for a specific agenda item. Example: 05/5/21 – Open Session - Agenda Item No. 5 To provide public comments for a Public Hearing: Send an email to publiccomments@sbcity.org before 4:00 p.m. the day of the scheduled meeting. Include your name, telephone number, and the agenda item number. At the time of the requested agenda item, the City Clerk will call the commenter. Each person will be allowed to speak f or up to three-minutes. W ritten comments will be provided to the Mayor and City Council prior to the meeting and will be posted online f or public review, but will not be read aloud. Voicemail comments will be played aloud during the appropriate public comment portion of the meeting. Please note that written & recorded comments received after the deadline will not be included in the record until the next regular meeting. Recorded comments received past the deadline will not be played during the meeting. To view Po werPoint presentations, written comments, or any revised documents f or this meeting date select the link: https://sbcity.tiny.us/agendabackup051921 Or visit the City Clerk’s page: From the City’s homepage www.sbcity.org select the Government category-> City Clerkon the Navigation menu select Search for Records Online-> Council Agendas->Current Year 2021->Meeting Date CITY OF SAN BERNARDINO AGENDA FOR THE REGULAR MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY WEDNESDAY, MAY 19, 2021 5:30 PM – CLOSED SESSION 7:00 PM – OPEN SESSION VIA ZOOM • SAN BERNARDINO, CA 92410 • WWW.SBCITY.ORG Theodore Sanchez John Valdivia Damon L. Alexander COUNCIL MEMBER, W ARD 1 MAYOR COUNCIL MEMBER, WARD 7 Sandra Ibarra Robert D. Field MAYOR PRO TEM, W ARD 2 CITY MANAGER Juan Figueroa Sonia Carvalho COUNCIL MEMBER, W ARD 3 CITY ATTORNEY Fred Shorett Genoveva Rocha COUNCIL MEMBER, W ARD 4 CITY CLERK Ben Reynoso COUNCIL MEMBER, W ARD 5 Kimberly Calvin COUNCIL MEMBER, W ARD 6 Welcome to a meeting of the Mayor and City Council of the City of San Bernardino. o Written comment on any item may also be submitted to the City Clerk to be included in the meeting record. It will not be read aloud by the City Clerk. o Those who wish to speak on public or quasi-judicial hearing items will have three minutes for each item. o Please contact the City Clerk’s Office (909) 384-5002 two working days prior to the meeting for any requests for reasonable accommodation to include interpreters. o All documents for public review are on file with the City Clerk’s Office or may be accessed online by going to www.sbcity.org. Regular Meeting Agenda May 19, 2021 Mayor and City Council of the City of San Bernardino Page 3 Printed 5/14/2021 CALL TO ORDER Attendee Name Present Absent Late Arrived Council Member, Ward 1 Theodore Sanchez    Mayor Pro-Tem, Ward 2 Sandra Ibarra    Council Member, Ward 3 Juan Figueroa    Council Member, Ward 4 Fred Shorett    Council Member, Ward 5 Ben Reynoso    Council Member, Ward 6 Kimberly Calvin    Council Member, Ward 7 Damon L Alexander    Mayor John Valdivia    City Manager Robert D. Field    City Attorney Sonia Carvalho    City Clerk Genoveva Rocha    5:30 P.M. CLOSED SESSION PUBLIC COMMENT CLOSED SESSION (A) PUBLIC EMPLOYEE PERFORMANCE EVALU ATIONS (Pursuant to Government Code Section 54957): Discussion of evaluation procedures and preparation for annual evaluation of Mayor and City Council appointees. Title: City Manager Title: City Attorney Title: City Clerk (B) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1): i). M.H., a minor by and through his guardian ad litem, Nakitta Young v. City of San Bernardino, et al., United States District Court Case No.5:20-cv-00242 JGB (KKx) (C) CONFERENCE WITH REAL PROPERTY NEGOTIATORS - Pursuant to Government Code Section 54956.8: Property Address: Carousel Mall Property, 43 acres Agency Negotiator: Robert D. Field, City Manager, or designee Negotiating Parties: Renaissance Downtown USA/ICO Real Estate Group Under Negotiation: Price and Terms (D) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation (Pursuant to Government Code Section 54956.9(d)(4)): One case Regular Meeting Agenda May 19, 2021 Mayor and City Council of the City of San Bernardino Page 4 Printed 5/14/2021 7:00 P.M. INVOCATION AND PLEDGE OF ALLEGIANCE CLOSED SESSION REPORT CITY MANAGER UPDATE MAYOR AND CITY COUNCIL UPDATES PRESENTATIONS 1. Supervisor Joe Baca, Jr. - Roadmap to Revitalization for San Bernardino PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA APPOINTMENTS 2. Public Safety and Human Relations Commission Appointment (Ward 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Ms. Savannah J. Taylor to the Public Safety and Human Relations Commission representing Ward 6. Ms. Taylor will replace Walter A. Jarman with the term ending December 2024. Council staff has verified that appointee is a registered voter within the City. 3. Electoral Redistricting Advisory Committee (Ward 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of James R. Albert to the Electoral Redistricting Advisory Committee representing Ward 7 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. 4. General Plan Advisory Committee Appointment (Ward 5) Recommendation It is recommended that the Mayor and City Council of the Ci ty of San Bernardino, California, approve the appointment of Mr. Richard Kaplan to the General Plan Advisory Committee representing Ward 5 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. 5. Elected Official Compensation Advisory Board (Ward 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Diallo R. Changamire Johnson to the Elected Official Compensation Advisory Board representing Ward 7 with the term ending December 2024. Mr. Johnson will replace Michael Tacchia with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Regular Meeting Agenda May 19, 2021 Mayor and City Council of the City of San Bernardino Page 5 Printed 5/14/2021 DISCUSSION 6. Establishment of Local Campaign Finance Regulations (All Wards) Recommendation Staff recommends that the City Council either: (1) Review and Provide Further Direction to Staff Regarding the Proposed Ordinance; or (2) Introduce, Read by Title Only, and Waive Further Reading of Ordinance No. MC-1558 Adding Chapter 2.55 to the City of San Bernardino Municipal Code Relating to Local Campaign Finance Regulations and Direct Staff To Propose Necessary Budget Adjustments at Time of Ordinance Adoption. 7. City Charter Amendment Process Recommendation Review and consider options available to amend the City Charter and provide staff direction. 8. Information on Warehousing Uses Recommendation Staff recommends the City Council review the report and provide direction regarding whether it wishes to consider warehouse development standards as planned (i.e., as part of the update to the General Plan and Development Code) or if it wishes for staff to prepare an urgency ordinance for more immediate consideration. 9. Commercial Truck Route Implementation (Ward All) Recommendation Provide direction on the establishment of commercial truck routes in the City. 10. Successor Agency Action: Final Approval of 2010A Series Tax Allocation Bond Refunding (All Wards) Recommendation Adopt Resolution No. 2021-113 of the Mayor and City Council of the City of San Bernardino, California, acting in the capacity as the Successor Agency to the Redevelopment Agency of the City of San Bernardino, approving a form of preliminary official statement in connection with the sale and delivery of its tax allocation refunding bonds; making certain determinations relating thereto; and authorizing certain other action in connection therewith. 11. Receive an Oral Report on Measure S Committee Recommendations Regarding the Proposed FY 2021/22 Operating and Capital Budget and the Use of Measure S Revenue (All Wards) Regular Meeting Agenda May 19, 2021 Mayor and City Council of the City of San Bernardino Page 6 Printed 5/14/2021 PUBLIC HEARINGS 12. Appeal 21-01 for DP-P 20-10 & ME 20-01 (Ward 7) Recommendation Adopt Resolution No. 2021-101 of the Mayor and City Council of the City of San Bernardino, California, denying Appeal 21-01, thereby upholding the Planning Commission’s approval of Development Permit Type -P 20-10 and Minor Exception 21-01 allowing the development and establishment of a commercial retail building containing approximately 10,542 square feet with a nine percent (9%) reduction of the number of required off-street parking spaces from 35 to 32 spaces on a project site comprised of two (2) parcels containing a total of approximately 0.83 acres, located at 3191 North E Street (APN: 0152-163-18 and 19) within the Commercial General (CG-1) Zone. CONSENT CALENDAR 13. Approval of the Mayor and City Council Meeting Minutes (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the draft meeting minutes for the May 5, 2021, Regular Meeting of the Mayor and City Council. 14. Hometown Heroes Military Banner Program Policy and Dissolution of Standing City Council Sub-Committees (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-114 establishing the Hometown Heroes Military Banner Program Policy; and 2. Adopt Resolution No. 2021-115 dissolving all Standing City Council Sub- committees including Legislative Review Committee, Community Development Block Grant Committee, and the Hometown Heroes Military Banner Committee. 15. Notice of Availability of Surplus Land - Carousel Mall (Ward 1) Recommendation Adopt Resolution No. 2021-116 of the Mayor and City Council of the City of San Bernardino, California, declaring City-owned property fronting Second Street on the south, Fourth Street on the north, E Street on the east, and G Street on the west and commonly known as the Carousel Mall, as surplus land; approve the form of Notice of Availability attached to the resolution; and direct the City Manager to comply with the requirements of the Surplus Land Act, Government Code, Section 54220 et seq., for the disposition of the Carousel Mall. Regular Meeting Agenda May 19, 2021 Mayor and City Council of the City of San Bernardino Page 7 Printed 5/14/2021 16. February, March and April 2021 City Board, Commission, and Citizen Advisory Committee Approved Minutes Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the minutes from the City board, commission, and citizen advisory committee meetings approved in March and April 2021. 17. Resolution to Approve the City Investment Policy for FY 2021/22 Recommendation Adopt Resolution No. 2021-117 of the Mayor and City Council of the City of San Bernardino, California, approving the City Investment Policy for FY 2021/22. 18. Investment Portfolio Report for April 2021 (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept and file the Monthly Investment Portfolio Report for April 2021. 19. 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 April and May 2021. 20. First Amendment to Consultant Services Agreement with Ninyo & Moore Geotechnical & Environmental Sciences Consultants (Ward 1) Recommendation Adopt Resolution No. 2021-118 of the Mayor and City Council of the City of San Bernardino, California: 1. Approving the First Amendment to Professional Services Agreement with Ninyo & Moore Geotechnical & Environmental Sciences Consultants (“First Amendment”) in the amount of $69,630.20 for additional design for the Montgomery Ward Service Center Soil Vapor Extraction Pilot Test Work Plan Implementation (“Project”), and Extending the agreement term through December 31, 2022; and 2. Authorizing the Director of Finance to record a budget adjustment for the Project in the amount of $69,630.20 in the Successor Agency Bond Proceed Account #710-130-0143-5502 and to amend the Purchase Order to Ninyo & Moore Geotechnical & Environmental Sciences Consultants; and 3. Authorizing the City Manager, or designee, to execute the First Amendment. 21. Resolution Adopting SB1 2021/2022 Road Maintenance Program List of Projects (All Wards) Recommendation Adopt Resolution No. 2021-119 of the Mayor and City Council of the City of San Bernardino, California, approving the Road Maintenance and Rehabilitation proposed project list for submittal to the California Transportation Commission; Regular Meeting Agenda May 19, 2021 Mayor and City Council of the City of San Bernardino Page 8 Printed 5/14/2021 adopting a list of projects for Fiscal Year 2021/22 to be funded by Senate Bill 1: Road Repair and Accountability Act of 2017. 22. Fiscal Year 2021/22 Assessment Levies for Previously Formed Districts (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-120, declaring intention to levy and collect assessments within Assessment District Nos. 951 (Zone 1), 951 (Zone 2), 952 (Zones 1, 2 and 2A), 952 (Zone 3), 953, 956, 959 (Zone 1), 962, 963, 968, 974, 975, 976, 981, 982, 986, 989, 991, 993, 997, 1001, 1002, 1005, 1007, 1012 and 1016 for Fiscal Year 2021/22, approving the Engineer’s Report and providing notice of the time and place of hearing proposed assessments; and 2. Adopt Resolution No. 2021-121, declaring intention to levy and collect assessments within Assessment District Nos. 1017, 1019, 1020, 1023 and 1024 for Fiscal Year 2021-22, approving the Engineer’s Report and providing notice of time and place of hearing on proposed assessments; and 3. Adopt Resolution No. 2021-122, declaring intention to levy and collect assessments within Assessment District Nos. 1025 and 1027 for Fiscal Year 2021-22, approving the Engineer’s Report and providing notice of time and place of hearing on proposed assessments; and 4. Adopt Resolution No. 2021-123, declaring intention to levy and collect assessments within Assessment District Nos. 1028, 1029, 1030, 1031, 1032, 1035 (Zone 1), 1035 (Zone 2), 1036, 1037, 1038, 1039, 1040, 1041, 1042, 1043 (Zone 1), 1043 (Zone 2), 1045, 1046, 1047, 1048, 1050, 1052, 1054, 1055, 1056, 1057, 1059, 1060, 1063, 1064, and 1068 for Fiscal Year 2021-22, approving the Engineer’s Report and providing notice of time and place of hearing on proposed assessments; and 5. Adopt Resolution No. 2021-124, declaring intention to levy and collect assessments within Assessment District No. 1022 and Zones 1, 2 and 3 thereof for Fiscal Year 2021/22, approving the Engineer’s Report and providing notice of time and place of hearing on proposed assessments. Regular Meeting Agenda May 19, 2021 Mayor and City Council of the City of San Bernardino Page 9 Printed 5/14/2021 ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS 23. Extend Public Notifications for Public Hearings from 500 to 1,000 Feet - Council Member Alexander 24. Re-Establish the Luis Ojeda San Bernardino Food Fest Extravaganza as a City Coordinated and Sponsored Monthly or by Monthly Event - Council Member Sanchez 25. Establishment of a Data Driven Pavement Management System to Continually Assess the Condition of the City’s Roadways and the Creation of a User - Friendly and Transparent Tool to Allow Council, Staff, and the Public to Visualize the Condition of the City’s Street Assets. - Council Member Sanchez ITEMS TO BE REFERRED TO COMMITTEE REPORTS ON CONFERENCES/MEETINGS ATTENDED 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 hel d on Wednesday, June 2, 2021 via tele-conference. Closed Session will begin at 5:30 p.m. and Open Session will begin at 7:00 p.m. CERTIFICATION OF POSTING AGENDA I, Genoveva Rocha, CMC, City Clerk for the City of San Bernardino, California, hereby certify that the agenda for the May 19, 2021 Regular Meeting of the Mayor and City Council and the Mayor and City Council acting as the Successor Agency to the Redevelopment Agency was posted on the City’s bulletin board located at 201 North “E” Street, San Bernardino, California, at the San Bernardino Public Library located at 555 West 6th Street, San Bernardino, California, and on the City’s website sbcity.org on May 14, 2021. I declare under the penalty of perjury that the foregoing is true and correct. ___________________________________ Genoveva Rocha, CMC, City Clerk Regular Meeting Agenda May 19, 2021 Mayor and City Council of the City of San Bernardino Page 10 Printed 5/14/2021 NOTICE: Any member of the public may address this meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item appearing on the agenda by approaching the microphone in the Council Chamber when the item about which the member desires to speak is called and by asking to be recognized. Any member of the public desiring to speak to the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency concerning any matter not on the agenda but which is within the subject matter jurisdiction of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may address the body at the end of the meeting, during the period reserved for public comments. Said total period for public comments shall not exceed 60 minutes, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. A three minute limitation shall apply to each member of the public, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. No member of the public shall be permitted to “share” his/her three minutes with any other member of the public. Speakers who wish to present documents to the governing body may hand the documents to the City Clerk at the time the request to speak is made. The Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may refer any item raised by the public to staff, or to any commission, board, bureau, or committee for appropriate action or have the item placed on the next agenda of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. However, no other action shall be taken nor discussion held by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item which does not appear on the agenda unless the action is otherwise authorized in accordance with the provisions of subdivision (b) of Section 54954.2 of the Government Code. Public comments will not be received on any item on the agenda when a public hearing has been conducted and closed. Page 1 Closed Session City of San Bernardino Date: May 19, 2021 To: Honorable Mayor and City Council Members From: Sonia Carvalho, City Attorney Subject: Closed Session (A) PUBLIC EMPLOYEE PERFORMANCE EVALUATIONS (Pursuant to Government Code Section 54957): Discussion of evaluation procedures and preparation for annual evaluation of Mayor and City Council appointees. Title: City Manager Title: City Attorney Title: City Clerk (B) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1): i). M.H., a minor by and through his guardian ad litem, Nakitta Young v. City of San Bernardino, et al., United States District Court Case No.5:20-cv-00242 JGB (KKx) (C) CONFERENCE WITH REAL PROPERTY NEGOTIATORS - Pursuant to Government Code Section 54956.8: Property Address: Carousel Mall Property, 43 acres Agency Negotiator: Robert D. Field, City Manager, or designee Negotiating Parties: Renaissance Downtown USA/ICO Real Estate Group Under Negotiation: Price and Terms (D) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation (Pursuant to Government Code Section 54956.9(d)(4)): One case Packet Pg. 11 Page 1 Presentation City of San Bernardino Date: May 19, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager Subject: Supervisor Joe Baca, Jr. - Roadmap to Revitalization for San Bernardino 1 Packet Pg. 12 Page 1 Appointment City of San Bernardino Request for Council Action Date: May 19, 2021 To: Honorable Mayor and City Council Members From: Kimberly Calvin, Council Member, Ward 6 Subject: Public Safety and Human Relations Commission Appointment (Ward 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Ms. Savannah J. Taylor to the Public Safety and Human Relations Commission representing Ward 6. Ms. Taylor will replace Walter A. Jarman with the term ending December 2024. Council staff has verified that appointee is a registered voter within the City. Background On February 21, 2018, the Public Safety and Human Relations Commission was established by Resolution No. 2018-46, and is charged with studying and making recommendations to the Mayor and City Council on matters concerning the City’s law enforcement and fire services, emergency preparedness and traffic safety (including traffic law enforcement and traffic engineering). The commission is comprised of nine (9) members who serve at pleasure of the Mayor and City Council. Pursuant to Chapter 2.17 of the Municipal Code, each City Council member shall nominate one member who shall serve during and for the term of the nominating Council member, and the Mayor shall nominate two members who shall serve during and for the term of the Mayor. 2020-2025 Key Strategic Targets and Goals The proposed commission appointment aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact No fiscal impact to City. Conclusion It is recommended that the Mayor and City Council of the City of San Bernard ino, California, approve the appointment of Ms. Savannah J. Taylor to the Public Safety and Human Relations Commission representing Ward 6. Ms. Taylor will replace Walter A. Jarman with the term ending December 2024. Council staff has verified that appoi ntee 2 Packet Pg. 13 7299 Page 2 is a registered voter within the City. Attachments Attachment 1 Commission Application - Ms. Savannah J. Taylor Ward: 6 2 Packet Pg. 14 2.a Packet Pg. 15 Attachment: Attachment 1 - MCC.Commission Application - Savannah J. Taylor (7299 : Public Safety and Human Relations Commission 2.a Packet Pg. 16 Attachment: Attachment 1 - MCC.Commission Application - Savannah J. Taylor (7299 : Public Safety and Human Relations Commission 2.a Packet Pg. 17 Attachment: Attachment 1 - MCC.Commission Application - Savannah J. Taylor (7299 : Public Safety and Human Relations Commission 2.a Packet Pg. 18 Attachment: Attachment 1 - MCC.Commission Application - Savannah J. Taylor (7299 : Public Safety and Human Relations Commission Page 1 Appointment City of San Bernardino Request for Council Action Date: May 19, 2021 To: Honorable Mayor and City Council Members From: Damon L Alexander, Council Member, Ward 7 Subject: Electoral Redistricting Advisory Committee (Ward 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of James R. Albert to the Electoral Redistricting Advisory Committee representing Ward 7 with the term ending December 20 24. Council Staff has verified that appointee is a registered voter within the City. Background On April 7, 2021, the Electoral Redistricting Advisory Committee was established by Resolution No. 2021-70. Discussion The Electoral Redistricting Advisory Committee is an advisory body to the Mayor and City Council and will consist of seven members with one resident from each ward. The purpose of the committee is to allow for active participation, engage community members and provide recommendations to the Mayor and City Council regarding the establishment of ward boundaries based upon the 2020 U. S. Census data, taking into consideration the following factors: (a) Population (b) Topography (c) Geography (d) Cohesiveness, contiguity, integrity, and compactness of territory (e) Communities of interests While serving on the committee, a member may not be a candidate for office, nor can they endorse, work for, volunteer for, be an immediate family member of, or make a campaign contribution to, a candidate for any City elective office. Each member of the committee shall serve without compensation; participation in the Committee is temporary and will terminate when the Mayor and City Council adopt the City’s ward map based upon the 2020 U. S. Census data. 2020-2025 Key Strategic Targets and Goals The proposed commission appointment aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and 3 Packet Pg. 19 7308 Page 2 motivates the highest quality talent. Fiscal Impact No fiscal impact to City. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of James R. Albert to the Electoral Redistricting Advisory Committee representing Ward 7 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Attachments Attachment 1 Commission Application - Mr. James R. Albert Ward: 7 Synopsis of Previous Council Action: April 7, 2021 Resolution No. 2021-70 establishing the Electoral Redistricting Advisory Committee was adopted. 3 Packet Pg. 20 3.a Packet Pg. 21 Attachment: Attachment 1 - MCC.Commission Application - James R. Albert (7308 : Electoral Redistricting Advisory Committee (Ward 7)) 3.a Packet Pg. 22 Attachment: Attachment 1 - MCC.Commission Application - James R. Albert (7308 : Electoral Redistricting Advisory Committee (Ward 7)) 3.a Packet Pg. 23 Attachment: Attachment 1 - MCC.Commission Application - James R. Albert (7308 : Electoral Redistricting Advisory Committee (Ward 7)) Page 1 Appointment City of San Bernardino Request for Council Action Date: May 19, 2021 To: Honorable Mayor and City Council Members From: Ben Reynoso, Council Member, Ward 5 Subject: General Plan Advisory Committee Appointment (Ward 5) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Richard Kaplan to the General Plan Advisory Committee representing Ward 5 with the term ending December 2024. Council S taff has verified that appointee is a registered voter within the City. Background On January 20, 2021, the General Plan Advisory Committee was established by Resolution No. 2021-02. Discussion The General Plan Advisory Committee (GPAC) is an advisory committee established by the Mayor and City Council to assist with the update of the City's comprehensive General Plan. The General Plan Advisory Committee serves as an important component of the public participation program providing one of the primary communication channels for the community making recommendations to the Planning Commission and the Mayor and City Council. Meetings of the GPAC will be open and public in accordance with the Brown Act. The General Plan Advisory Committee is comprised of seventeen (17) members who serve at pleasure of the Mayor and City Council. Pursuant to Resolution No. 2021 -02, the Mayor shall appoint three (3) members and each City Council member shall nominate two (2) members. In accordance with the City Charter and th e City's Municipal Code, appointees must be residents of the City of San Bernardino. Appointees should be able to clearly articulate the community perspective and/or the area of the City in which they live. 2020-2025 Strategic Targets and Goals The proposed commission appointment aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact No fiscal impact to City. 4 Packet Pg. 24 7309 Page 2 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Richard Kaplan to the General Plan Advisory Committee representing Ward 5 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Attachments Attachment 1 Commission application - Mr. Richard Kaplan Ward: 5 Synopsis of Previous Council Action: January 20, 2021 Resolution No. 2021-02 establishing the General Plan Advisory Committee was adopted. 4 Packet Pg. 25 4.a Packet Pg. 26 Attachment: Attachment 1 - MCC.Commission Application - Richard Kaplan (7309 : General Plan Advisory Committee Appointment (Ward 5)) 4.a Packet Pg. 27 Attachment: Attachment 1 - MCC.Commission Application - Richard Kaplan (7309 : General Plan Advisory Committee Appointment (Ward 5)) 4.a Packet Pg. 28 Attachment: Attachment 1 - MCC.Commission Application - Richard Kaplan (7309 : General Plan Advisory Committee Appointment (Ward 5)) Page 1 Appointment City of San Bernardino Request for Council Action Date: May 19, 2021 To: Honorable Mayor and City Council Members From: Damon L Alexander, Council Member, Ward 7 Subject: Elected Official Compensation Advisory Board (Ward 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Diallo R. Changamire Johnson to the Elected Official Compensation Advisory Board representing Ward 7 with the te rm ending December 2024. Mr. Johnson will replace Michael Tacchia with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Background Section 305 of the City Charter provides that the Compensati on for the Mayor and City Council members shall be established by ordinance following a public hearing, giving due consideration to the recommendations of an advisory commission charged with the periodic review of compensation for City-elected officials. Compensation for the Mayor shall be commensurate with that for a full-time position. No ordinance increasing such salaries shall become effective until the date of commencement of the terms of City Council members elected at the next regular election. Thereafter, the Mayor and City Council adopted San Bernardino Municipal Code Chapter 2.19 which establishes the Elected Official Compensation Advisory Commission and provides that the Commission shall consist of nine members who shall serve at the pleasure of the Mayor and City Council. Pursuant to the Municipal Code, each City Council member shall nominate one member who shall serve during and for the term of the nominating Council member, and the Mayor shall nominate two members who shall serve during and for the term of the Mayor. 2020-2025 Key Strategic Targets and Goals The proposed commission appointment aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact No fiscal impact to City. 5 Packet Pg. 29 7310 Page 2 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Diallo R. Changamire Johnson to the Elected Official Compensation Advisory Board representing Ward 7 with the term ending December 2024. Mr. Johnson will replace Michael Tacchia with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Attachments Attachment 1 Commission application - Mr. Diallo R. Changamire Johnson Ward: 7 5 Packet Pg. 30 5.a Packet Pg. 31 Attachment: Attachment 1 - MCC.Commission Application - Diallo R. Changamire Johnson (7310 : Elected Official Compensation Advisory 5.a Packet Pg. 32 Attachment: Attachment 1 - MCC.Commission Application - Diallo R. Changamire Johnson (7310 : Elected Official Compensation Advisory 5.a Packet Pg. 33 Attachment: Attachment 1 - MCC.Commission Application - Diallo R. Changamire Johnson (7310 : Elected Official Compensation Advisory Page 1 Discussion City of San Bernardino Request for Council Action Date: May 19, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager Subject: Establishment of Local Campaign Finance Regulations (All Wards) Recommendation Staff recommends that the City Council either: (1) Review and Provide Further Direction to Staff Regarding the Proposed Ordinance; or (2) Introduce, Read by Title Only, and Waive Further Reading of Ordinance No. MC-1558 Adding Chapter 2.55 to the City of San Bernardino Municipal Code Relating to Local Campaign Finance Regulations and Direct Staff To Propose Necessary Budget Adjustments at Time of Ordinance Adoption. Background The Political Reform Act (Gov. Code, § 81000) includes regulations regulating campaign finance, lobbying activity and conflicts of interest. Government Code section 81013 provides, “[n]othing in this title prevents the Legislature or any other state or local agency from imposing additional requirements on any person i f the requirements do not prevent the person from complying with this title. If any act of the Legislature conflicts with the provisions of this title, this title shall prevail.” Accordingly, the City is permitted by state law to impose its own campaign f inance regulations. At the December 16, 2020 City Council meeting, the City Council requested that staff bring back an ordinance for Council consideration that provided: (1) a campaign contribution limit; (2) limits on contributions by applicants and the ir agents during the permitting process; (3) limits on solicitation of contributions by elected officials from applicants and their agents during the permitting process; and (4) disclosure requirements from any contributions for a 12-month period prior to any City Council action involving the contributor. Discussion A draft ordinance establishing local campaign finance regulations was presented at the April 21, 2021 City Council meeting for review and consideration. Following discussion and feedback from the City Council, the item was continued. Presented this evening is a revised draft of the ordinance including a $250 campaign contribution limit for contributions received from persons with active or recent applications, along with the removal of the disqualification and the associated safe harbor provisions. Additionally, 6 Packet Pg. 34 7296 Page 2 in an effort to making tracking easier, references to contributions made within the last 12 months have been changed to align with the elected official’s last California Fair Political Practices Commission (FPPC) Form 460 filing (Recipient Committee Campaign Statement). Given that the City will be following the state campaign contribution limits included in Government Code section 85301 this provision does not need to be included in the City’s Ordinance. The City’s Ordinance is focused entirely on the additional regulations that extend beyond that established and enforced by the state. An enforcement provision has also been added calling for auditing and claims of violations of these provisions to be referred to the FPPC for review twice annually. If the FPPC finds that an elected official has violated any provision of the ordinance he or she will be fined in accordance with Government Code Section 83116. The proposed changes are shown by redline in the draft ordinance (MC-1558). The standard agreement with the FPPC for the enforcement of the City’s local campaign contribution limit ordinance is attached. (1) A Campaign Contribution Limit On January 1, 2021, Assembly Bill (AB) 571 went into effect. AB571 set default contribution limits for elective county and city offices aligning with the contribution limits set for elected officers of the state Assembly and Senate. Under AB 571, the FPPC will have administration and enforcement authority regarding the default contribution limits for cities and counties without their own local contribution limits, and makes violations of default contribution limits within the FPPC’s purview punishable as a misdemeanor. These contribution limits may be adjusted by the FPPC in January of odd-numbered years to reflect increases or decreases in the Consumer Price Index (CPI). AB 571 also extends contribution restrictions for elective county or city offices regarding personal loans and for committees created to oppose recall measures. Under the new law, cities were permitted to adopt local campaign ordinances that contain additional restrictions and requirements that are more precisely tailored to the needs of their communities. On September 16, 2 020, after consideration of the matter, the City Council decided to defer to the state’s limit, which is presently set at $4,900 from an individual per election, enforced by the FPPC. Given that the City will be following the state campaign contribution limits included in Government Code section 85301 this provision does not need to be included in the City’s Ordinance. (2) Limits on Contributions from Applicants and their Agents Government Code section 84308 prohibits a party seeking a contract (othe r than competitively bid), license, permit, or other entitlement for use from making a contribution of more than $250 to appointed members of local boards and commissions, such as planning commissions. This rule applies to parties and their agents when th ey seek to make contributions to elected officials of the City who serve on other local agency boards, e.g., when a council member sits on the board of the local airport 6 Packet Pg. 35 7296 Page 3 authority, applicants before that body are subject to these rules when making contributions to that council member. Modeled on Section 84308, the proposed ordinance includes language prohibiting applicants and their agents from making contributions over $250 while they have a license, permit, or other entitlement application pending and for three months following the date of a final decision. (3) Limits on Solicitation and Receipt of Contributions from Applicants and their Agents Government Code section 84308 prohibits appointed officers from soliciting or receiving contributions over $250 from applicants and their agents while the proceeding is pending and for three months following a final decision. In addition, Government Code section 84308 requires officials to disclose and disqualify themselves from considering any applications if they have received a contribution of more than $250 from an applicant or their agent within the preceding 12 months. Modeled on Government Code section 84308, the proposed ordinance includes language prohibiting elected officials from soliciting or receiving contributions over $250 from an applicant or their agent while they have an application pending and for three months following the date of a final decision. In addition, the proposed ordinance includes language requiring elected officials to disclose any contributions over $250 from an applicant since their last Form 460 filing (Recipient Committee Campaign Statement). This language is included as Section 2.55.010 (B) of the proposed ordinance. (4) Disclosure Requirements Government Code section 84308 does not include disclosure requirements beyond the requirement that an official disclose any contribution of more than $250 from an applicant or their agent in the 12 months prior to the decision. This language is included as Section 2.55.020 (C) of the proposed ordinance with a change in the referenced timeframe to align with the officials last Form 460 filing (Recipient Committee Campaign Statement). (5) Additional Provisions Not Specifically Requested by City Council In addition to the foregoing provisions, which were specifically requested by Council, staff included the following in the proposed ordinance: (A) Application to Candidates - In order to level the playing field in the immediate run-up to elections, the proposed ordinance wo uld impose the disclosure and disqualification requirements on newly elected officials who received campaign contributions from applicants prior to their election to 6 Packet Pg. 36 7296 Page 4 office. This provision is designed to prevent efforts by applicants to attempt to engage in play-to-play schemes with candidates that would not be permitted with an existing elected official. In addition, the proposed provision applies more stringently to those candidates who have received sufficient votes in the elections to take office but have not yet taken office due to the delay in the certification of an election. For example, a candidate who receives sufficient votes in a March/June primary to be elected to office would be subject to the prohibitions notwithstanding the fact that they have not yet been seated. This provision is located in Section 2.55.010 (D) of the proposed ordinance. (B) Auditing and Enforcement - If a local campaign finance ordinance is adopted, careful consideration will need to be given to the enforcement of the established provisions of the ordinance. Given the importance of ensuring that the review and determination of campaign contribution limit violations are handled by an independent body in a fair and impartial manner, staff recommends having the FPPC enf orce the City’s local campaign contribution ordinance as they do for other agencies that have established local campaign finance regulations including the County of San Bernardino. The cost to the City would be based upon the cost of providing services set not to exceed $400,000 during a two year contract period. 2020-2025 Goals and Objectives The proposed action would meet Key Strategic Targets and Goals of Financial Stability and Focused, Aligned Leadership and Unified Community. The proposed action wo uld minimize risk and litigation exposure by providing a transparent entitlement process and by increasing trust in City government. Further, the proposed action would build a culture that attracts, retains, and motivates the highest quality talent setting a tone of political transparency. Fiscal Impact There is no direct financial impact related to this discussion. If the City decides to adopt an ordinance imposing local campaign finance regulations, there will be additional costs associated with enforcement. Conclusion Staff recommends that the City Council either: (1) Review and Provide Further Direction to Staff Regarding the Proposed Ordinance; or (2) Introduce, Read by Title Only, and Waive Further Reading of Ordinance No. MC-1558 Adding Chapter 2.55 to the City of San Bernardino Municipal Code Relating to Local Campaign Finance Regulations and Direct Staff To Propose Necessary Budget Adjustments at Time of Ordinance Adoption. 6 Packet Pg. 37 7296 Page 5 Attachments Attachment 1 Proposed Ordinance No. MC-1558 Attachment 2 Redline Showing Revisions to Ordinance No. MC-1558 Attachment 3 FPPC Campaign Law Enforcement Agreement Ward: All Wards Synopsis of Previous Council Actions: September 2 and 16, 2020 Considered but did not adopt, Ordinance MC-1542, establishing no campaign contribution limit requirements for elected officials within the City of San Bernardino. December 16, 2020 The City Council requested that staff prepare an ordinance establishing local campaign finance regulations including: 1) Election campaign contribution limits; 2) Limits on contributions by applicants and their agents during the permitting process; 3) Limits on solicitation of contributions by elected from applicants and their agents during the permitting process; 4) Disclose requirements for any contributions for a 12-month period prior to any Council action involving the contributor. April 21, 2021 The Mayor and City Council reviewed and discussed a draft Ordinance No. MC-1558 establishing local campaign finance regulations. Following discussion and feedback from the City Council, the item was continued. 6 Packet Pg. 38 Ordinance No. MC-1558 1 ORDINANCE NO. 1558 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ADDING CHAPTER 2.55 TO THE CITY OF SAN BERNARDINO MUNICIPAL CODE RELATING TO LOCAL CAMPAIGN FINANCE REGULATIONS WHEREAS, the City desires to eliminate any appearance of impropriety during City permitting processes that come before the City Council; and WHEREAS, in an effort to increase transparency and eliminate any appearance of quid pro quo, thereby increasing trust in the City’s government, the City seeks to establish a limit on campaign contributions by persons, or persons acting on their behalf, with active applications with the City; and WHEREAS, Government Code section 81013 provides that a local agency may impose additional laws regulating political practices on any person as long as it does not prevent that person from complying with the Political Reform Act; and WHEREAS, Government Code section 84308 already imposes limits on the solicitation and receipt of contributions for appointed officials from active or recent participants in the entitlement process and the City’s elected officials are required to comply with such rules when they are appointed to other legislative bodies; and WHEREAS, at its December 16, 2020 meeting, the City Council directed staff to bring forth an ordinance for consideration that provided: (1) a campaign contribution limit; (2) limits on contributions by applicants and their agents during the permitting process; (3) limits on solicitation of contributions by elected officials from applicants and their agents during the permitting process; and (4) a disclosure requirement for any contributions for a period prior to any City Council action involving the contributor; and WHEREAS, it is the City Council’s intent to address the perception that unregulated campaign contributions lead to improper influence over elected officials and to establish realistic, narrowly tailored and enforceable limits on the amounts which may be contributed to City political campaigns by persons with active applications in the City consistent with the rights of political expression protected under the United States Constitution; and WHEREAS, consistent with current federal case law, nothing in this Ordinance is intended to limit or prohibit independent expenditures; and WHEREAS, the purpose of this Ordinance is to establish limits on the amounts of money that may be directly contributed to political campaigns by persons with active applications in the City’s elections. 6.a Packet Pg. 39 Attachment: Attachment 1 - Proposed Ordinance MC 1558 Campaign Finance (7296 : Establishment of Local Campaign Finance Regulations Ordinance No. MC-1558 2 NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1. Incorporation of Recitals. The above recitals are true and correct and are incorporated herein. SECTION 2. Addition of Chapter 2.55. Chapter 2.55 is hereby added to Title 2 of the San Bernardino Municipal Code to read as follows: “ CHAPTER 2.55 LOCAL CAMPAIGN FINANCE REGULATIONS Sections: 2.55.010 Pay-to-Play Restrictions 2.55.020 Enforcement 2.55.010 Pay-to-Play Restrictions A. Definitions. The definitions set forth in this subdivision shall govern the interpretation of this Section 2.55.010: (1) “Party” means any person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use. (2) “Participant” means any person who is not a party but who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use and who has a financial interest in the decision, as described in Article 1 (commencing with Section 87100) of Chapter 7 of Title 9 of the Government Code. A person actively supports or opposes a particular decision in a proceeding if he or she lobbies in person the officers or employees of the agency, testifies in person before the agency, or otherwise acts to influence officers of the agency. (3) “Elected Official” means any elected official of the City including the Mayor and all City Council Members. (4) “License, permit, or other entitlement for use” means all business, professional, trade and land use licenses and permits and all other entitlements for use, including all entitlements for land use, all contracts (other than competitively bid, labor, or personal employment contracts), and all franchises. (5) “Contribution” includes contributions to candidates and committees in federal, state, or local elections. 6.a Packet Pg. 40 Attachment: Attachment 1 - Proposed Ordinance MC 1558 Campaign Finance (7296 : Establishment of Local Campaign Finance Regulations Ordinance No. MC-1558 3 B. Prohibition on Soliciting and Accepting Certain Contributions. No Elected Official shall accept, solicit, or direct a contribution of more than two hundred and fifty dollars ($250.00) from any party, or his or her agent, or from any participant, or his or her agent, while a proceeding involving a license, permit, or other entitlement for use is pending before the City and for three (3) months following the date a final decision is rendered in the proceeding if the Elected Official knows or has reason to know that the participant has a financial interest, as that term is used in Article 1 (commencing with Section 87100) of Chapter 7 of Title 9 of the Government Code. This prohibition shall apply regardless of whether the Elected Official accepts, solicits, or directs the contribution for himself or herself, or on behalf of any other officer, or on behalf of any candidate for office or on behalf of any committee. C. Elected Official Disclosure Requirements. Prior to rendering any decision in a proceeding involving a license, permit or other entitlement for use pending before the City, each Elected Official who received a contribution since their last California Fair Political Practices Commission (“FPPC”) Form 460 Filing (Recipient Committee Campaign Statement) in an amount of more than two hundred and fifty dollars ($250.00) from a party or from any participant shall disclose that fact on the record of the proceeding. D. Application to Candidates. Contributions made to candidates for elective office shall subject the candidate to the disclosure provision of subdivision C should the candidate be subsequently elected. Candidates who have become the Council Member-Elect or Mayor-Elect, but who have not yet been sworn in, shall be subject to the prohibition of subdivision B. E. Applicant Restrictions. A party to a proceeding before the City involving a license, permit, or other entitlement for use shall disclose on the record of the proceeding an y contribution in an amount of more than two hundred and fifty dollars ($250.00) made since their last FPPC Form 460 Filing (Recipient Committee Campaign Statement) by the party, or his or her agent, to any Elected Official. No party, or his or her agent, to a proceeding involving a license, permit, or other entitlement for use pending before the City and no participant, or his or her agent, in the proceeding shall make a contribution of more than two hundred and fifty dollars ($250.00) to any Elected Official during the proceeding and for three (3) months following the date a final decision is rendered by the City in the proceeding. When a closed corporation is a party to, or a participant in, a proceeding involving a license, permit, or other entitlement for use pending before the City, the majority shareholder is subject to the disclosure and prohibition requirements herein. 2.55.020 Enforcement The City hereby designates the California Fair Political Practices Commission (“FPPC”) as the enforcement agency for this Chapter. The City shall provide to the FPPC twice, annually, data for all licenses, permits, or other entitlements for use, as defined in Section 2.55.010 above. The FPPC will cross-reference the data received from the City against the most recent FPPC Form 460 Filing (Recipient Committee Campaign Statement) of each Elected Official who has received Contributions equal to or exceeding two thousand dollars ($2,000) as shown on the most recent FPPC Form 460 Filing. As set forth in Government Code section 83116, the FPPC shall have prosecutorial discretion to enforce this Chapter and may discipline an Elected Official 6.a Packet Pg. 41 Attachment: Attachment 1 - Proposed Ordinance MC 1558 Campaign Finance (7296 : Establishment of Local Campaign Finance Regulations Ordinance No. MC-1558 4 for violating this Chapter, including, but not limited to, requiring the Elected Official to pay a monetary fine.” SECTION 3. Severability. If any section, subsection, subdivision, sentence, or clause or phrase in this Ordinance or any part thereof is for any reason held to be unconstitutional , invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases are declared unconstitutional, invalid, or ineffective. SECTION 4. Effective Date. This Ordinance shall become effective thirty (30) days after the date of its adoption. SECTION 5. Notice of Adoption. The City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 19th day of May, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia R. Carvalho, City Attorney 6.a Packet Pg. 42 Attachment: Attachment 1 - Proposed Ordinance MC 1558 Campaign Finance (7296 : Establishment of Local Campaign Finance Regulations Ordinance No. MC-1558 5 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-1558, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the __ day of ___________, 2021. Ordinance No. MC- ____ was approved, passed and adopted at a regular meeting held the __ day of __________, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this __ day of __________ 2021. Genoveva Rocha, CMC, City Clerk 6.a Packet Pg. 43 Attachment: Attachment 1 - Proposed Ordinance MC 1558 Campaign Finance (7296 : Establishment of Local Campaign Finance Regulations 1 ORDINANCE NO. 1558 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ADDING CHAPTER 2.55 TO THE CITY OF SAN BERNARDINO MUNICIPAL CODE RELATING TO LOCAL CAMPAIGN FINANCE REGULATIONS WHEREAS, the City desires to eliminate any appearance of impropriety during City permitting processes that come before the City Council; and WHEREAS, in an effort to increase transparency and eliminate any appearance of quid pro quo, thereby increasing trust in the City’s government, the City seeks to establish a limit on campaign contributions by persons, or persons acting on their behalf, with active applications with the City; and WHEREAS, Government Code section 81013 provides that a local agency may impose additional laws regulating political practices on any person as long as it does not prevent that person from complying with the Political Reform Act; and WHEREAS, Government Code section 84308 already imposes limits on the solicitation and receipt of contributions for appointed officials from active or recent participants in the entitlement process and the City’s elected officials are required to comply with such rules when they are appointed to other legislative bodies; and WHEREAS, at its December 16, 2020 meeting, the City Council directed staff to bring forth an ordinance for consideration that provided: (1) a campaign contribution limit; (2) limits on contributions by applicants and their agents during the permitting process; (3) limits on solicitation of contributions by elected officials from applicants and their agents during the permitting process; and (4) a disclosure requirements from requirement for any contributions for a period prior to any City Council action involving the contributor; and WHEREAS, consistent with current federal case law, nothing in this Ordinance is intended to limit or prohibit independent expenditures; and WHEREAS, the purpose of this Ordinance is to establish limits on the amounts of money that may be directly contributed to political campaigns by persons with active applications in the City’s elections; and WHEREAS, it is the City Council’s intent to address the perception that unregulated campaign contributions lead to improper influence over elected officials and to establish realistic, narrowly tailored and enforceable limits on the amounts which may be contributed to City political campaigns by persons with active applications in the City consistent with the rights of political expression protected under the United States Constitution.; and WHEREAS, consistent with current federal case law, nothing in this Ordinance is intended to limit or prohibit independent expenditures; and 6.b Packet Pg. 44 Attachment: Attachment 2 - Redline of Ordinance (7296 : Establishment of Local Campaign Finance Regulations (All Wards)) 2 WHEREAS, the purpose of this Ordinance is to establish limits on the amounts of money that may be directly contributed to political campaigns by persons with active applications in the City’s elections. NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1. Incorporation of Recitals. The above recitals are true and correct and are incorporated herein. SECTION 2. Addition of Chapter 2.55. Chapter 2.55 is hereby added to Title 2 of the San Bernardino Municipal Code to read as follows: “ CHAPTER 2.55 LOCAL CAMPAIGN FINANCE REGULATIONS Sections: 2.55.010 Campaign Contribution Limits to Elective City Office Candidates 2.55.0202.55.010 Pay-to-Play Restrictions 2.55.0302.55.020 Enforcement 2.55.010 Campaign Contribution Limits to Elective City Office Candidates Candidates for elective city office shall comply with the state campaign contribution limits including, without limitation, Government Code section 85301. 2.55.0202.55.010 Pay-to-Play Restrictions A. Definitions. The definitions set forth in this subdivision shall govern the interpretation of this Section 2.55.022.55.010: (1) “Party” means any person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use. (2) “Participant” means any person who is not a party but who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use and who has a financial interest in the decision, as described in Article 1 (commencing with Section 87100) of Chapter 7 of Title 9 of the Government Code. A person actively supports or opposes a particular decision in a proceeding if he or she lobbies in person the officers or employees of the agency, testifies in person before the agency, or otherwise acts to influence officers of the agency. (3) “Elected Official” means any elected official of the City including the Mayor and all City Council Members. 6.b Packet Pg. 45 Attachment: Attachment 2 - Redline of Ordinance (7296 : Establishment of Local Campaign Finance Regulations (All Wards)) 3 (4) “License, permit, or other entitlement for use” means all business, professional, trade and land use licenses and permits and all other entitlements for use, including all entitlements for land use, all contracts (other than competitively bid, labor, or personal employment contracts), and all franchises. (5) “Contribution” includes contributions to candidates and committees in federal, state, or local elections. B. Prohibition on Soliciting and Accepting Certain Contributions. No Elected Official shall accept, solicit, or direct a contribution of more than two hundred and fifty dollars ($250.00) from any party, or his or her agent, or from any participant, or his or her agent, while a proceeding involving a license, permit, or other entitlement for use is pending before the City and for three (3) months following the date a final decision is rendered in the proceeding if the Elected Official knows or has reason to know that the participant has a financial interest, as that term is used in Article 1 (commencing with Section 87100) of Chapter 7 of Title 9 of the Government Code. This prohibition shall apply regardless of whether the Elected Official accepts, solicits, or directs the contribution for himself or herself, or on behalf of any other officer, or on behalf of any candidate for office or on behalf of any committee. C. Elected Official Disclosure Requirements. Prior to rendering any decision in a proceeding involving a license, permit or other entitlement for use pending before the City, each Elected Official who received a contribution within the preceding twelve (12) months since their last California Fair Political Practices Commission (“FPPC”) Form 460 Filing (Recipient Committee Campaign Statement) in an amount of more than two hundred and fifty dollars ($250.00) from a party or from any participant shall disclose that fact on the record of the proceeding. D. Elected Official Disqualification. No Elected Official shall make, participate in making, or in any way attempt to use his or her official position to influence the decision in a proceeding involving a license, permit, or other entitlement for use pending before the agency if the Elected Official has received a contribution in an amount of more than _________________ dollars ($______.00) within the preceding twelve (12) months from a party or his or her agent, or from any participant, or his or her agent if the officer knows or has reason to know that the participant has a financial interest in the decision, as that term is described with respect to public officials in Article 1 (commencing with Section 87100) of Chapter 7 of Title 9 of the Government Code. E. Safe Harbor. If an Elected Official receives a contribution, which would either be prohibited or require disclosure or disqualification under this section, and returns the contribution within 30 days from the time he or she knows, or should have known, about the contribution and the proceeding involving a license, permit, or other entitlement for use, he or she shall be permitted to participate in the proceeding. FD. Application to Candidates. Contributions made to candidates for elective office shall subject the candidate to the disclosure and disqualification provisionsprovision of subdivision C should the candidate be subsequently elected. Candidates who have become the Council 6.b Packet Pg. 46 Attachment: Attachment 2 - Redline of Ordinance (7296 : Establishment of Local Campaign Finance Regulations (All Wards)) 4 Member-Elect or Mayor-Elect, but who have not yet been sworn in, shall be subject to the prohibition of subdivision B. GE. Applicant Restrictions. A party to a proceeding before the City involving a license, permit, or other entitlement for use shall disclose on the record of the proceeding any contribution in an amount of more than two hundred and fifty dollars ($250.00) made within the preceding twelve (12) months since their last FPPC Form 460 Filing (Recipient Committee Campaign Statement) by the party, or his or her agent, to any Elected Official. No party, or his or her agent, to a proceeding involving a license, permit, or other entitlement for use pending before the City and no participant, or his or her agent, in the proceeding shall make a contribution of more than two hundred and fifty dollars ($250.00) to any Elected Official during the proceeding and for three (3) months following the date a final decision is rendered by the City in the proceeding. When a closed corporation is a party to, or a participant in, a proceeding involving a license, permit, or other entitlement for use pending before the City, the majority shareholder is subject to the disclosure and prohibition requirements herein. 2.55.0302.55.020 Enforcement The City hereby designates the California Fair Political Practices Commission (“FPPC”) as the enforcement agency for this Chapter. The City shall provide to the FPPC twice, annually, data for all licenses, permits, or other entitlements for use, as defined in Section 2.55.010 above. The FPPC will cross-reference the data received from the City against the most recent FPPC Form 460 Filing (Recipient Committee Campaign Statement) of each Elected Official who has received Contributions equal to or exceeding tw o thousand dollars ($2,000) as shown on the most recent FPPC Form 460 Filing. As set forth in Government Code section 83116, the FPPC shall have prosecutorial discretion to enforce this Chapter and may discipline an Elected Official for violating this Chapter, including, but not limited to, requiring the Elected Official to pay a monetary fine.” SECTION 3. Severability. If any section, subsection, subdivision, sentence, or clause or phrase in this Ordinance or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases are declared unconstitutional, invalid, or ineffective. SECTION 4. Effective Date. This Ordinance shall become effective thirty (30) days after the date of its adoption. SECTION 5. Notice of Adoption. The City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California. 6.b Packet Pg. 47 Attachment: Attachment 2 - Redline of Ordinance (7296 : Establishment of Local Campaign Finance Regulations (All Wards)) 5 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 21st19th day of April May, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia R. Carvalho, City Attorney 6.b Packet Pg. 48 Attachment: Attachment 2 - Redline of Ordinance (7296 : Establishment of Local Campaign Finance Regulations (All Wards)) 6 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-1558, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the __ day of ___________, 2021. Ordinance No. MC- ____ was approved, passed and adopted at a regular meeting held the __ day of __________, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this __ day of __________ 2021. Genoveva Rocha, CMC, City Clerk 6.b Packet Pg. 49 Attachment: Attachment 2 - Redline of Ordinance (7296 : Establishment of Local Campaign Finance Regulations (All Wards)) _____________________________________________ STATE OF CALIFORNIA FAIR POLITICAL PRACTICES COMMISSION AND CAMPAIGN LAW ENFORCEMENT AGREEMENT This agreement (“Agreement”) is made and entered into this ____ day of ___________ 20__, by and between the State of California, acting by and through the Fair Political Practices Commission, (“FPPC”) and the ______________ (“Local Agency”). Background The Local Agency determined it is in its best interest to retain the services of the FPPC to provide for the enforcement and interpretation of campaign laws under the provisions of the Local Agency campaign ordinance (“Local Ordinance”), governing the elective Local Agency offices, as set forth with specificity in Exhibit D, Items 1 and 2. The FPPC has the special skills, knowledge, experience, and expertise in the enforcement and interpretation of campaign laws necessary to effectively advise, investigate, audit, and otherwise assist the Local Agency on such matters. The FPPC’s enforcement and interpretation of campaign laws under the provisions of the Local Ordinance is expressly authorized by California Government Code Section 83123.6. The parties agree as follows: Terms and Conditions Exhibit A: Scope of Services 1.The FPPC agrees to provide the Local Agency with campaign law services for the impartial, effective administration, implementation, and enforcement of the Local Ordinance as dictated in paragraph 2. 2.Campaign Law Enforcement Services.  Auditing i.The FPPC will perform audits and investigations for each candidate, and his or her controlled committee, for elective Local Agency office for whom $2,000 or more in contributions were received or $2,000 in expenditures were made, whether by the candidate, a committee(s) controlled by the candidate, or committee primarily supporting the candidate. www.fppc.ca.gov FPPC Advice: advice@fppc.ca.gov (866.275.3772) FPPC EAED • 083-8-2020 • Page 1 of 8 6.c Packet Pg. 50 Attachment: FPPC Local and Municipal Contract 2019-20_v2 (7296 : Establishment of Local Campaign Finance Regulations (All Wards))    ✓ ii.The audit or investigation will cover all required campaign statements and for the primary and general election, or runoff, or special election for the following election time periods: January 1, 20__ through December 31, 20__. The audits may extend to include any transaction in connection with the election being audited or investigated. It will not include any statements or reports previously audited under Title 9 of the Government Code, Chapter 10, Sections 90001 or 90003. iii.The FPPC will follow audit guidelines and standards as required under Government Code Section 90007. Enforcement The FPPC agrees to serve as the civil and administrative prosecutor for violations of the Local Ordinance. The FPPC, at its sole discretion, may investigate possible violations and may commence civil and/or administrative actions in accordance with Title 9 of the Government Code, and Title 2, Division 3, Part 1, Chapter 5 (Administrative Adjudication), Sections 11500, et seq., of the Government Code. Campaign Compliance Assistance The FPPC agrees to provide written and/or verbal assistance to candidates for elected Local Agency offices, and potential contributors in a Local Agency election, regarding the Local Ordinance upon the request of the candidate or potential contributor. Campaign Compliance Training  At least once per election cycle, the FPPC will provide an in-person seminar to review the relevant process, procedures and rules for Local Agency electoral candidates.  The FPPC will provide outreach to Local Agency electoral candidates. The Local Agency will provide the FPPC with filed Form 501 campaign intention statements by the Local Agency electoral candidates to facilitate this outreach. Legal Review Upon notification and request by the Local Agency, the FPPC will review any proposed changes to the Local Ordinance for compliance with the Political Reform Act prior to adoption by the Local Agency. (Required under Government Code Section 83123.6. subdivisions (b) and (c).) www.fppc.ca.gov FPPC Advice: advice@fppc.ca.gov (866.275.3772) FPPC EAED • 083-8-2020 • Page 2 of 8 6.c Packet Pg. 51 Attachment: FPPC Local and Municipal Contract 2019-20_v2 (7296 : Establishment of Local Campaign Finance Regulations (All Wards)) ✓Education and Training The FPPC will provide an initial training workshop to the Local Agency regarding the conflict of interest provisions and/or Form 700 requirements under the Political Reform Act, as it applies to the Local Agency and its officials, employees, candidates for elected Local Agency offices, and/or lobbyists. (The Political Reform Act initial training workshop is not a charged service.) 3.The term of this Agreement is the two-year election cycle period: January 1, 20__ through December 31, 20__. Services will commence on the beginning of this term, and for the elections held during this term, as indicated in paragraph (2)(A), above. Due to the nature of audits and investigations, some services may necessarily occur on dates after the stated election cycles. Services from prior contract will continue as previously determined until completed. 4.The Local Agency agrees to provide the FPPC with a resolution, motion, order, or ordinance of the governing body, which authorizes execution of this Agreement, and indicating the individual who is authorized to sign the Agreement on behalf of the Local Agency. 5.The Local Agency must consult with the FPPC prior to adopting or amending the Local Ordinance. The Local Ordinance must comply with Title 9 of the Government Code. (Government Code Section 83123.6, subdivision (b) and (c).) 6.The Contract Coordinators for this Agreement are: Fair Political Practices Commission Agency: ____________________ Loressa Hon, Chief of Administration Name/Title: ____________________ 1102 Q Street, Suite 3000 Address: ____________________ Sacramento, CA 95814 City/Zip: ____________________ 916-322-5660 Phone: ____________________ lhon@fppc.ca.gov Email: ____________________ Communications regarding this Agreement will be addressed to the Contract Coordinators unless otherwise indicated in the Agreement. Each party will update the contact information for the Contract Coordinator within 30 days of any changes. Exhibit B: Budget Details and Payment Provisions 1.Full Cost Recovery Agreement. In accordance with the state full cost recovery policy, the Local Agency agrees to reimburse the FPPC for its full direct and its indirect costs incurred in performing the www.fppc.ca.gov FPPC Advice: advice@fppc.ca.gov (866.275.3772) FPPC EAED • 083-8-2020 • Page 3 of 8 6.c Packet Pg. 52 Attachment: FPPC Local and Municipal Contract 2019-20_v2 (7296 : Establishment of Local Campaign Finance Regulations (All Wards)) services. The full cost of goods or services includes all costs attributable directly to the activity plus a fair share of indirect costs which can be ascribed reasonably to the good or service provided. (State Administrative Manual, Section 8752.). If the Local Agency terminates the agreement, it agrees to pay the FPPC for any other expenditures reasonably made by the FPPC in anticipation of services to be rendered pursuant to this Agreement (Gov. Code Section 83123.6 (d)(2)) 2.Invoicing and Payment. The FPPC will provide the Local Agency with an itemized quarterly invoice detailing all FPPC service hours and costs for the administration, implementation, and enforcement of the Local Ordinance under this Agreement, along with any billing statement for payments due under the Agreement. Quarterly itemized invoices and billing statements will be submitted to: Agency: Office: Name/Title: Address: The Local Agency agrees to pay the FPPC within thirty (30) days of the date of each quarterly invoice and billing statement. 3.Advance Payment. A.The Local Agency agrees to pay an advance payment of [$55,000 or adjusted amount] to the FPPC for costs to be incurred in performance of this Agreement. The Local Agency agrees to make this advance payment at the beginning of each year of the contract term. B.Except for extraordinary costs and expenses, no advance notification is necessary for services provided for each year of the contract. The FPPC will track its expenditures made in anticipation of services to be rendered, and its services provided, and will bill first to the advance payment. Upon depletion of the advance payment, the Local Agency will pay additional reimbursement sums, if any, upon receipt of a billing statement from the FPPC. 4.Rates and Costs for Services. A.Budget Detail. The FPPC will bill for its services at the rates set forth below. These rates include the FPPC’s direct and indirect costs related to these positions. www.fppc.ca.gov FPPC Advice: advice@fppc.ca.gov (866.275.3772) FPPC EAED • 083-8-2020 • Page 4 of 8 6.c Packet Pg. 53 Attachment: FPPC Local and Municipal Contract 2019-20_v2 (7296 : Establishment of Local Campaign Finance Regulations (All Wards)) Classification Rate per hour Attorney $220.00 Paralegal $205.00 Investigator $125.00 Program Specialist (Auditor) $195.00 Political Reform Consultant (Research Analyst) $195.00 Executive/Supervisory Staff $220.00 Administrative Staff $195.00 The rates reflect the Attorney General’s Office, Bulletin 17-09, and the Department of General Services Price Book, 2018-19. The Executive/Supervisory Staff and Administrative Staff rates are calculated using comparable rates from the Price Book and internal calculations in compliance with the state full cost recovery policy. B.Necessary Changes to Rates. In the event that the state hourly rates increase, or the state reimbursement rates increase, the Local Agency agrees to pay the appropriate increased rate applied as of the effective date of the rate increase. It is understood by both parties that no advance written notification is necessary prior to implementing the increased rates. In the event that the FPPC determines that the above hourly rates do not result in a full cost recovery for services provided in accordance with state policy, it will notify the Contract Coordinator for the Local Agency and retroactively apply the appropriate rates, after consultation with the Local Agency, to ensure the FPPC maintains the required full cost recovery. C.Ordinary and Extraordinary Costs and Expenses. The FPPC will bill its actual costs for ordinary costs and expenses directly related to the services provided. Ordinary costs and expenses are limited to: 1.Court fees, including filing fees, judicial officer fees, deposition fees, transcript fees, and process serving fees. 2.Administrative fees, including administrative officer fees, administrative law judge fees, hearing fees, transcript fees, and process serving fees. 3.Travel, lodging, and meals pursuant to state reimbursement rates as necessary for FPPC officers, employees, contractors, agents, and volunteers. 4.Telephone charges, postage, photocopying/document reproduction costs, and damage to property repaired or replaced at state expense. 5.Research service fees necessary to perform services. www.fppc.ca.gov FPPC Advice: advice@fppc.ca.gov (866.275.3772) FPPC EAED • 083-8-2020 • Page 5 of 8 6.c Packet Pg. 54 Attachment: FPPC Local and Municipal Contract 2019-20_v2 (7296 : Establishment of Local Campaign Finance Regulations (All Wards)) Prior Approval Required. The FPPC will bill its actual costs for extraordinary costs and expenses only upon prior approval by the Local Agency Counsel. Extraordinary costs and expenses include, but are not limited to: 1.Fees for third-party consultants, investigators, and experts including their travel, lodging, and meals. 2.Travel, lodging, and meals for witnesses. 5.Total Cost of the Agreement. The parties anticipate that the total amount of this Agreement will not exceed [$400,000 or adjusted amount], with an estimated budget of [$200,000 or adjusted amount] per year. In the event this contract is canceled or is not renewed, the FPPC will provide an estimate of remaining hours necessary to complete the services already in progress, or required by this Agreement, to be billed at the hourly rate, and the services may be completed upon mutual agreement. Exhibit C: General Terms and Conditions 1.APPROVAL. This Agreement is of no force or effect until signed by both parties. In addition, pursuant to Government Code Section 83123.6, subdivision (d), the FPPC may approve this Agreement at the earliest of 90 days after its submission to the Department of General Services (“DGS”), or after receiving DGS’s written review, whichever occurs first. 2.STATE AUDIT OF THIS AGREEMENT. The Local Agency agrees that the State of California, including but not limited to, the Department of General Services, the Bureau of State Audits, or their designated representative, shall have the right to review and to copy all records and supporting documentation pertaining to the performance of this Agreement. The Local Agency agrees to maintain records and supporting documentation for possible audit for a minimum of three (3) years after final payment, unless a longer period of records retention is stipulated by the parties or required by the Bureau of State Audits. The Local Agency agrees to allow the auditor(s) access to records and supporting documentation during normal business hours and to allow interviews of any employees who might reasonably have information related to the records. Furthermore, the Local Agency agrees that the State of California has the same right to audit records and interview staff in any subcontract related to the performance of this Agreement. (Government Code Section 8546.7.) The FPPC will not bill the Local Agency for its time or costs related to a State Audit by the Department of General Services, Bureau of State Audits. 3.DISPUTES. Any dispute concerning a question of fact arising under the terms of this www.fppc.ca.gov FPPC Advice: advice@fppc.ca.gov (866.275.3772) FPPC EAED • 083-8-2020 • Page 6 of 8 6.c Packet Pg. 55 Attachment: FPPC Local and Municipal Contract 2019-20_v2 (7296 : Establishment of Local Campaign Finance Regulations (All Wards)) Agreement that is not disposed within a reasonable period of time (ten days) by the parties normally responsible for the administration of this Agreement shall be brought to the attention of the Contract Coordinators for joint resolution. The parties shall continue their responsibilities during any dispute. 4.INDEMNIFICATION. Pursuant to Government Code Section 895.4 and except as provided below, the Local Agency agrees to indemnify, defend (with counsel approved by the FPPC General Counsel), and hold harmless the FPPC and its authorized officers, employees, contractors, agents, and volunteers from any and all claims, actions, losses, damages, and liability arising out of the performance of this Agreement, or from the enforcement or interpretation of any provision of the Local Ordinance, from any cause whatsoever, including the acts, errors, or omissions of any person and for any costs or expenses incurred by the FPPC on account of any claim except where such indemnification is prohibited by law. The FPPC shall indemnify, hold harmless, and defend the Local Agency and its authorized officers, employees, contractors, agents, and volunteers from any and all claims, actions, losses, damages, and liability arising from the FPPC’s sole negligence or willful misconduct relating to obligations under this Agreement. 5.AMENDMENT. This Agreement may be amended by written mutual consent of the parties. No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties, and approved as required. No oral understanding or agreement not incorporated in the Agreement is binding on any of the parties. 6.CANCELLATION. This Agreement may by canceled by either party, at any time, by ordinance or resolution and with an effective date of 90 days after notice is provided by the cancelling party, or other mutually agreed upon date. Notice of the cancellation shall be provided to the Contract Coordinators. In the event this Agreement is canceled by the Local Agency, the FPPC may require the Local Agency to pay for services rendered and any other expenditures reasonably made by the FPPC in anticipation of services to be rendered pursuant to the Agreement. 7.REPORT TO THE LEGISLATURE. Within thirty (30) of receipt of a written request by the FPPC, the Local Agency will provide the FPPC with items necessary for its report to the Legislature pursuant to Section 83213.6, subdivision (h), including its estimated annual cost savings, annual performance metrics, and relevant public comments submitted to the Local Agency. Exhibit D: Special Terms 1.Local Ordinance. The Local Ordinance subject to this Agreement consists of the following, with any noticed subsequent amendments pursuant to Exhibit A, item 5: www.fppc.ca.gov FPPC Advice: advice@fppc.ca.gov (866.275.3772) FPPC EAED • 083-8-2020 • Page 7 of 8 6.c Packet Pg. 56 Attachment: FPPC Local and Municipal Contract 2019-20_v2 (7296 : Establishment of Local Campaign Finance Regulations (All Wards)) _____________________________ _____________________________ Name and citation to title, division, chapter, and sections (as necessary) [example: “Local Agency Ordinance, Title 1, Government and Administration, Division 2, Chapter 43, Campaign Finance Reform”]: 2. Local Agency Elective Offices. The Local Agency elective offices subject to the Local Ordinance and this Agreement are: [examples: “Supervisor Auditor-Controller/Treasurer/Tax Collector District Attorney Sheriff/Coroner/Public Administrator Local Agency Superintendent of Schools Local Agency Assessor-Recorder-Local Agency Clerk”]: Fair Political Practices Commission Executive Director Date: Local Agency [Name, Title ex: Mayor/Chair of Council/Board of Supervisors]: Date: www.fppc.ca.gov FPPC Advice: advice@fppc.ca.gov (866.275.3772) FPPC EAED • 083-8-2020 • Page 8 of 8 6.c Packet Pg. 57 Attachment: FPPC Local and Municipal Contract 2019-20_v2 (7296 : Establishment of Local Campaign Finance Regulations (All Wards)) Page 1 Discussion City of San Bernardino Request for Council Action Date: May 19, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager Subject: City Charter Amendment Process Recommendation Review and consider options available to amend the City Charter and provide staff direction. Background San Bernardino is a "charter" city as contrasted to a "general law" city. Under California law, a general law city’s powers are limited to those granted to it by State statute and from the general police power granted to it by the State Constitution. On the other hand, a charter city's power comes from the State Constitution which grants it “home rule” authority over municipal affairs, subject only to the limitations of the city’s charter, the State Constitution, and preemptive State law that addresses a matter of “statewide concern”. As a result, charter cities have more legal and operational latitude than do general law cities. The City Charter serves as the City's "constitution" and may only be amended by a majority vote of the people. The City of San Bernardino’s current City Charter was adopted by voters on November 8, 2016, and filed with the California Secretary of State on January 31, 2017. On April 7, 2021, the City Council requested that staff prepare an overview of the process required to amend the City Charter including the possibility of changing from having a full-time to a part-time Mayor. The process required to make an amendment to the City’s Charter is outlined in this report for discussion. Discussion Article X, Section 1000, of the City Charter provides that amendments to the City’s Charter will be made in accordance with the procedures set by the State Elections Code as applicable to charter cities. Section 1001 further requires the City to establish a process to ensure the periodic review of the Charter to identify potential amendments that enhance clarity, efficiency, and the principle of the council -manager form of government. The establishment of the Charter Review Committee is the mechanism set by the Mayor and City Council to adhere to this provision of the charter. The Charter Review Committee is an advisory committee, comprised of nine members - seven representing their respective wards, a member of the business community, and a resident appointed at-large by the Mayor (Resolution No. 2017-243). The next regular meeting of the Charter Review Committee is scheduled for Tuesday, June 2, 2021. 7 Packet Pg. 58 7318 Page 2 Under State law, there are a number of ways in which a charter amendment can be brought forward. These include: 1. The Charter Review Committee can draft an amendment for consideration by the City Council; 2. The City Council can have a draft amendment prepared (with or without the input and recommendation of the Charter Review Committee); or 3. A citizen-led initiative petition signed by 15% of the City’s registered voters and which is otherwise in compliance with the Elections Code can be filed to place a charter amendment on the ballot. The proponents would have 180 days from the receipt of the title and summary to circulate the petition for signatures and the City would have a maximum of 60 working days to certify the signatures. If the petition is found sufficient (in proper form and has enough signatures) the Council would be required by law to place the charter amendment on the ballot for voter consideration. Under State law, charter amendments may only be proposed to voters at a Statewide Primary Election, a Statewide General Election or at the City’s general municipal election, if different from the previous two dates. The next Statewide Primary Election will be June 7, 2022 and the next Statewide General Election will be November 8, 2022. The City’s general municipal election is held on the same date as the Statewide General Election, so only these two dates are available every two -year election cycle to propose charter amendments to the voters. Further, charter amendments that will affect City employee or retiree rights (e.g., salary, benefits, discipline or pension modifications) may only be placed on the next Statewide General Election ballot in November - no other election date alternative is provided in State law. A Council/Committee proposed charter amendment must be called for the ballot at least 95 days before the scheduled election while a citizen -led initiative amendment must be called at least 88 days before the scheduled election. This results in the following deadlines to place a charter amendment on the ballot for consider ation by voters in 2022: Council/Committee Proposed (95-day): a. March 4, 2022 for June 7, 2022 election b. August 5, 2022 for November 8, 2022 election Citizen Initiative (88-day): c. March 11, 2022 for June 7, 2022 election d. August 12, 2022 for November 8, 2022 election Depending upon the type of charter amendment, further analysis and/or negotiation may be required. For example, if a Council/Committee proposed charter amendment will have an impact on land use or development (as opposed to a citize n led initiative) the City must conduct a California Environmental Quality Act (CEQA) analysis before placing the amendment on the ballot. Similarly, if the charter amendment will affect City 7 Packet Pg. 59 7318 Page 3 employee or retiree rights (e.g., salary, benefits, discipline or pension modifications) the City must meet and confer in good faith with the City’s employees and retirees under the Meyers-Milias-Brown Act before the amendment is placed on the next Statewide General Election ballot. 2020-2025 Strategic Targets and Goals The review and consideration of the process required to amend the City Charter aligns with Key Strategic Target No. 2 Focused, Aligned Leadership and Unified Community. Fiscal Impact There is no financial impact associated with the consideration of the process to amend the City Charter beyond staff time. Amending the City Charter will require that the City provide professional support including special legal counsel to assist with preparing the proposed amendment(s). Conclusion Review and consider options available to amend the City Charter and provide staff direction. Attachments Attachment 1 City Charter Attachment 2 Resolution No. 2017-243 - Establishment of the Charter Review Committee Ward: All December 20, 2021 The Mayor and City Council adopted Resolution No. 2017-243, transitioning the Volunteer Citizen-Based Charter Committee to the Charter Review Committee for the Periodic Review of the Charter. 7 Packet Pg. 60 1 2 3 4 5 6 7 s 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2017-243 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO TRANSITIONING THE VOLUNTEER CITIZEN -BASED CHARTER COMMITTEE TO THE CHARTER REVIEW COMMITTEE FOR PERIODIC REVIEW OF THE CHARTER WHEREAS, the Volunteer Citizen -Based Charter Committee was established by Resolution No. 2014-59 on March 17, 2014; and WHEREAS, a new Charter was adopted by the voters on November 8, 2016; and WHEREAS, the new Charter was filed with the Secretary of State and became effective on January 31, 2017; and WHEREAS, at the November 3, 2017 Strategic Planning Meeting, the Mayor and City Council discussed the charter implementation process and status and determined this group may be able to assist with this effort while also performing the periodic review contemplated in the Charter; and WHEREAS, Section 1001 of the Charter requires that the Council establish a process by December 2017 to ensure the periodic review of the Charter to identify potential amendments that enhance clarity, efficiency, and the principles of the council-manager form of government. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Volunteer Citizen -Based Charter Committee established by Resolution No. 2014-59 is hereby transitioned to the Charter Review Committee. SECTION 2. Resolution No. 2014-59 is hereby repealed. SECTION 3. The Charter Review Committee shall consist of: A. One member of the Business Community appointed by the Mayor. Business Community shall, for purposes of this Resolution, be defined as an owner or executive of a business located within the boundaries of the City who is a registered voter and resident of the City. 7.a Packet Pg. 61 Attachment: Attachment 1 - 2017-243 (7318 : City Charter Amendment Process) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 B. One resident appointed by the Mayor. Resident shall, for the purposes of this Resolution, be defined as a person who is a registered voter and whose primary place of residence is located within the boundaries of the City. C. Each member of the City Council shall appoint one registered voter who is a resident from their respective Ward. D, Once the Committee is formed, the members shall elect one of its members to act as Chairman of the Committee. SECTION 4. The Committee shall complete a periodic review of the Charter to identify potential amendments that enhance clarity, efficiency and the principles of the council-manager form of government. SECTION 5. The Committee shall meet at designated times to allow for participation by its members and the public. The City Clerk shall publicly notice such meetings. SECTION 6. The City Attorney, or his designee, shall act in an advisory role to the committee. SECTION 7. The current members of the Volunteer Citizen -Based Charter Committee established by Resolution 2014-59 shall serve as members of the Charter Review Committee until they are removed or replaced by their respective appointers. 7.a Packet Pg. 62 Attachment: Attachment 1 - 2017-243 (7318 : City Charter Amendment Process) 1 2 3 4 5 6 7 8' 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO TRANSITIONING THE VOLUNTEER CITIZEN -BASED CHARTER COMMITTEE TO THE CHARTER REVIEW COMMITTEE FOR PERIODIC REVIEW OF THE CHARTER I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City Council of the City of San Bernardino at a Joint Regular Meeting thereof, held on the 20th day of December 2017, by the following vote, to wit: Council Members: AYES MARQUEZ X BARRIOS X VALDIVIA X(M) SHORETT X(S) NICKEL X RICHARD X MULVIHILL X NAYS ABSTAIN ABSENT Georgeann H na, CMC, Ci . Clerk The foregoing Resolution is hereby approved this 20" day of December 201 J R. Carey Davi/1 Mayor City of San rnardino Approved as to form: Gary D. Saenz, City Attorney 7.a Packet Pg. 63 Attachment: Attachment 1 - 2017-243 (7318 : City Charter Amendment Process) City of San Bernardino Charter Adopted by Voters November 8, 2016 Filed with the California Secretary of State January 31, 2017 7.b Packet Pg. 64 Attachment: Attachment 2 - City Charter Adopted 11-8-2016 (7318 : City Charter Amendment Process) Table of Contents PREAMBLE 1 ARTICLE I: NAME, BOUNDARIES, POWERS, RIGHTS AND SUCCESSION, INTERGOVERNMENTAL RELATIONS 1 Section 100. Name and Boundaries ....................................................................................... 1 Section 101. Powers of the City ............................................................................................. 1 Section 102. Interpretation of Powers .................................................................................... 1 Section 103. Rights and Succession ...................................................................................... 1 Section 104. Intergovernmental Relations .............................................................................. 2 ARTICLE II: FORM OF GOVERNMENT 2 Section 200. Form of Government ......................................................................................... 2 ARTICLE III: CITY COUNCIL AND MAYOR 2 Section 300. General Powers and Duties ............................................................................... 2 Section 301. Composition, Eligibility, and Terms .................................................................... 2 Section 302. Powers and Duties of the Council ...................................................................... 3 Section 303. Powers and Duties of the Mayor ........................................................................ 3 Section 304. Manners of Action ............................................................................................. 4 Section 305. Compensation; Expenses .................................................................................. 4 Section 306. Prohibitions ....................................................................................................... 4 Section 307. Vacancies; Filling of Vacancies ......................................................................... 5 Section 308. Judge of Qualifications ...................................................................................... 5 Section 309. Council Organization, Meetings and Rules of Order ........................................... 5 ARTICLE IV: CITY MANAGER 5 Section 400. City Manager Appointment, Qualifications and Compensation ............................. 5 Section 401. Powers and Duties ............................................................................................ 6 ARTICLE V: DEPARTMENTS, SERVICES, OFFICERS AND EMPLOYEES 7 Section 501. General Provisions ............................................................................................ 7 Section 502. Direction by City Manager ................................................................................. 7 Section 503. Continuation of Departments ............................................................................. 7 7.b Packet Pg. 65 Attachment: Attachment 2 - City Charter Adopted 11-8-2016 (7318 : City Charter Amendment Process) San Bernardino Charter Page 2 Section 504. City Attorney ...................................................................................................... 7 Section 505. City Clerk .......................................................................................................... 7 Section 506. Departmental Administrators; Appointive Powers .............................................. 8 Section 507. Services ............................................................................................................ 8 Section 508. Personnel System ............................................................................................. 8 Section 509. Official Bonds. ................................................................................................... 8 ARTICLE VI: BOARDS, COMMISSIONS AND COMMITTEES 8 Section 600. General Provisions ............................................................................................ 8 Section 601. Appointment, Removal, Terms of Office and Procedural Rules .......................... 9 Section 602. Library ............................................................................................................... 9 Section 603. Water and Wastewater ...................................................................................... 9 Section 604. Personnel Commission .....................................................................................10 ARTICLE VII: FINANCIAL MANAGEMENT 10 Section 700. Fiscal Year .......................................................................................................10 Section 701. Submission of Budget and Budget Message .....................................................10 Section 702. Budget and Capital Improvement Program .......................................................10 Section 703. Council Action on the Budget and Capital Improvement Plan ...........................11 Section 704. Independent Audit ............................................................................................11 Article VIII: ELECTIONS 11 Section 800. City Elections ...................................................................................................11 Section 801. Elective Officers; Terms....................................................................................11 Section 802. Number of Wards .............................................................................................12 ARTICLE IX: INITIATIVE, CITIZEN REFERENDUM AND RECALL 12 Section 900. Initiative, Citizen Referendum and Recall .........................................................12 ARTICLE X: CHARTER AMENDMENTS 12 Section 1000. Charter Amendments .....................................................................................12 Section 1001. Periodic Review of Charter .............................................................................12 ARTICLE XI: SEVERABILITY 12 Section 1100. Severability .....................................................................................................12 7.b Packet Pg. 66 Attachment: Attachment 2 - City Charter Adopted 11-8-2016 (7318 : City Charter Amendment Process) CHARTER of the CITY OF SAN BERNARDINO STATE OF CALIFORNIA PREAMBLE We, the people of the City of San Bernardino, in order to secure the benefits of home rule and a council-manager form of government, hereby adopt this Charter. ARTICLE I: NAME, BOUNDARIES, POWERS, RIGHTS AND SUCCESSION, INTERGOVERNMENTAL RELATIONS Section 100. Name and Boundaries The City of San Bernardino, hereinafter termed the City, shall continue to be a municipal corporation under its present name of “City of San Bernardino.” The boundaries of the City shall be as now established until changed in the manner authorized by law. Section 101. Powers of the City The City shall have all powers possible for a city to have under the constitution and laws of the State of California as fully and completely as though they were specifically enumerated in this Charter. Section 102. Interpretation of Powers The powers of the City under this Charter shall be construed in favor of the City, and the specific mention of particular powers in the Charter shall not be interpreted as limiting in any way the general power granted in this article. Section 103. Rights and Succession The City shall continue to own, possess and control all rights and property of every kind and nature, owned, possessed or controlled by it at the time this Charter takes effect and shall be subject to all of its debts, obligations and liabilities. All ordinances, codes, resolutions, rules, regulations, and portions thereof, in force at the time this Charter takes effect, and not in conflict or inconsistent with this Charter, shall continue in force until they shall have been duly repealed, amended, changed, or superseded by proper authority as provided by this Charter. Subject to the provisions of this Charter, the present officers and employees of the City shall continue to perform the duties of their respective offices and employments under the same 7.b Packet Pg. 67 Attachment: Attachment 2 - City Charter Adopted 11-8-2016 (7318 : City Charter Amendment Process) San Bernardino Charter Page 2 conditions as those of the existing offices and positions until the election or appointment and qualification of their successors, subject to such removal and control as provided in this Charter. No action or proceeding, civil or criminal, pending at the time this Charter takes effect, brought by or against the City or any officer, office, department or agency thereof, shall be affected or abated by the adoption of this Charter or anything herein contained. Section 104. Intergovernmental Relations The City may participate by contract or otherwise with any governmental entity of this state or any other state or states in the United States in the performance of any activity, which one or more of such entities has the authority to undertake, to the maximum extent permitted by applicable law. ARTICLE II: FORM OF GOVERNMENT Section 200. Form of Government The municipal government established by this Charter is the council-manager form of government. ARTICLE III: CITY COUNCIL AND MAYOR Section 300. General Powers and Duties All powers of the City shall be vested in the City Council (“Council”), and to the extent provided in this Charter, the Mayor. The Council shall provide for the exercise and performance of all duties and obligations imposed on the City by State and Federal laws. Except as otherwise required by law, the role of the Council is legislative, which includes the power to set policy, approve contracts and agreements, and undertake other obligations consistent with this Charter and the City’s Municipal Code, while deferring to the discretion of management to choose the appropriate means to achieve the Council’s goals. Section 301. Composition, Eligibility, and Terms (a) Composition. The Council shall be composed of seven (7) Council members. The term “Council,” “legislative body,” or other similar terms as used in this Charter or any other provisions of law shall be deemed to refer to the collective body composed of the Council members. (b) Eligibility. Only registered voters of the City shall be eligible to hold the office of Council member or Mayor. Those elected shall have been qualified electors and residents of their respective wards for a period of at least thirty (30) consecutive days immediately preceding the date of filing their nomination papers for the office. 7.b Packet Pg. 68 Attachment: Attachment 2 - City Charter Adopted 11-8-2016 (7318 : City Charter Amendment Process) San Bernardino Charter Page 3 Section 302. Powers and Duties of the Council The Council, in collaboration with the Mayor, shall ensure fundamental municipal services are provided to protect and promote public health, safety, and welfare. The Council and Mayor shall operate together to serve the best interests of the City. The Council, in collaboration with the Mayor, will develop and implement a Code of Conduct to guide and direct their interactions and duties, including measures to hold one another accountable for deviations from the goals and principles set forth in this Charter and the City Code of Conduct. The Council, in collaboration with the Mayor, shall create and implement a plan to maintain the City’s fiscal integrity. Each Council member shall be entitled to vote on all matters coming before the Council. The Council shall have the power to override any veto of the Mayor by a vote of five (5) or more Council members. The Council shall select a Mayor Pro Tempore from one of its own members. In the event of a temporary absence from the City, illness, or any other cause that makes the Mayor temporarily unable to perform the duties of his or her office, the Mayor Pro Tempore shall have all powers and authority that the Mayor would have possessed if present to perform his or her duties. However, the Mayor Pro Tempore may not cast an additional vote in the event of a tie or exercise veto powers over Council action, but may continue to exercise his or her vote as a Council member. Section 303. Powers and Duties of the Mayor The Mayor shall have the following powers and perform the following duties, in addition to others as specified in this Charter: (a) Attend and preside at meetings of the Council and may participate fully in all discussions, but shall not be entitled to vote except in the event of a tie, to veto a matter, and as otherwise provided in this Charter; (b) Have the authority to veto any Council action approved by fewer than five (5) members of the Council; (c) Shall participate in the vote (1) to appoint or remove the City Manager, City Attorney and City Clerk and fix their compensation and (2) to appoint or remove members of boards, commissions or committees, except committees made up wholly of less than a majority of City Council members; (d) Appoint the members and officers of Council committees (committees made up wholly of less than a majority of City Council members), and perform other duties as specified by the Council; (e) Be recognized as the head of the City government for all ceremonial purposes and by the governor for purposes of military law; (f) Be the chief spokesperson for the City; and 7.b Packet Pg. 69 Attachment: Attachment 2 - City Charter Adopted 11-8-2016 (7318 : City Charter Amendment Process) San Bernardino Charter Page 4 (g) Represent the City in intergovernmental relations and establish and maintain partnerships and regional leadership roles to advance the City’s interest; and may delegate such roles to other members of the Council; and (h) Execute all ordinances, resolutions and contracts approved by the City Council except as otherwise authorized by the City Council. The Mayor shall have no administrative, appointment or removal powers except as otherwise provided in this Charter. The office of Mayor shall be a full-time position and the incumbent shall not engage in any business, professional or occupational activities that interfere with the discharge of the duties of the office. Section 304. Manners of Action Actions of the Council require a simple majority vote of the quorum present for approval unless: (a) Otherwise required for charter cities under State or Federal law; or (b) Required by this Charter to be approved by at least five affirmative votes of the Mayor and members of the Council. Section 305. Compensation; Expenses Compensation for the Mayor and Council members shall be established by ordinance following a public hearing, giving due consideration to the recommendations of an advisory commission charged with the periodic review of compensation for City-elected officials. Compensation for the Mayor shall be commensurate with that for a full-time position. No ordinance increasing such salaries shall become effective until the date of commencement of the terms of Council members elected at the next regular election. The Mayor and Council members shall receive reimbursement for actual and necessary expenses incurred in the performance of their duties of office. Section 306. Prohibitions (a) Holding Other Office. No Mayor or Council member shall hold any other City office or City employment during the term for which he or she was elected. No former Mayor or Council member shall hold any compensated appointive office or employment with the City until one (1) year after the expiration of the term for which he or she was elected. (b) Conflict of Interest. Elected and appointed officials shall adhere to conflict of interest codes as established by State law and/or City ordinance. (c) Appointments and Removals. Neither the Mayor nor any Council member shall, in any manner, control or demand the appointment or removal of any City administrative officer or employee whom the City Manager is empowered to appoint. This does not preclude the Mayor or members of the Council from expressing their views and fully and freely 7.b Packet Pg. 70 Attachment: Attachment 2 - City Charter Adopted 11-8-2016 (7318 : City Charter Amendment Process) San Bernardino Charter Page 5 discussing with the City Manager anything pertaining to the appointment and removal of such officers and employees. (d) Interference with Administration. Neither the Mayor nor any Council member shall interfere with the discretion of the City Manager in the exercise or performance of his or her powers or duties. The Mayor and Council members shall deal with City officers and employees who are subject to the direction and supervision of the City Manager solely through the City Manager, and shall not give orders to or attempt to direct the work of such officers and employees either publicly or privately. Inquiries may be made directly to officers and employees under the supervision of the City Manager with the knowledge and consent of the City Manager. Section 307. Vacancies; Filling of Vacancies (a) Vacancies. If the Council determines any of the events enumerated in provisions of the Government Code or California Constitution pertaining to vacancies in public offices have occurred, the Council shall declare a vacancy for the office of Council member or for the office of Mayor. (b) Filling of Vacancies. The method of filling vacancies shall be as prescribed by ordinance. Section 308. Judge of Qualifications The Council shall be the judge of the election and qualifications of its members and whether grounds exist for forfeiture of their office. Section 309. Council Organization, Meetings and Rules of Order The Council shall establish by ordinance the time, place and the method of calling meetings, the rules of order for the conduct of proceedings by the Council, and the order of succession in the event of a vacancy in the office of Mayor. ARTICLE IV: CITY MANAGER Section 400. City Manager Appointment, Qualifications and Compensation The Mayor and Council, by a vote of the Mayor and entire Council, shall appoint a City Manager and fix the City Manager’s compensation, as provided in section 304(b) of this Charter. The City Manager may be removed by the Mayor and entire Council in the same manner. The City Manager shall be appointed on the basis of education and experience in the accepted competencies and practices of local government management. The Mayor and Council shall 7.b Packet Pg. 71 Attachment: Attachment 2 - City Charter Adopted 11-8-2016 (7318 : City Charter Amendment Process) San Bernardino Charter Page 6 establish and communicate clear expectations for the City Manager. An evaluation of the City Manager’s performance shall be conducted at least annually. Section 401. Powers and Duties The City Manager shall be the chief executive officer of the City, responsible to the Council for the management of all City affairs placed in the City Manager’s charge by or under this Charter. The City Manager will be the sole authority for managing City operations and appointing and directing City staff, except as otherwise provided in this Charter. The City Manager shall: (a) Appoint and suspend or remove all City employees and appoint administrative officers, except as otherwise provided by law, this Charter, or established personnel rules. The City Manager may authorize any administrative officer subject to the City Manager’s direction and supervision to exercise these powers with respect to subordinates in that officer’s department, office or agency; (b) Direct and supervise the administration of all departments, offices and agencies of the City, except as otherwise provided by this Charter or by law; (c) Attend all Council meetings. The City Manager shall have the right to take part in the discussion but shall not vote; (d) Ensure the Mayor and Council are informed on all aspects of important emerging issues, including the City’s financial condition and future needs, and as part of that responsibility, brief the Mayor and Council at their meetings on the business matters before them; (e) See that all laws, provisions of this Charter, and acts of the Council are faithfully executed; (f) Prepare and submit the annual budget and capital improvement program to the Mayor and Council and implement the final budget approved by the Council to achieve the goals of the City; (g) Submit to the Mayor and Council and make available to the public a complete report on the finances and administrative activities of the City as of the end of each fiscal year; (h) Make such other reports as the Mayor or Council may request regarding operations; (i) Make recommendations to the Mayor and Council concerning the affairs of the City and facilitate the work of the Council in developing policy; (j) Provide staff support services for the Mayor and Council members; (k) Assist the Mayor and Council in developing long-term goals for the City and strategies to implement these goals; (l) Be accountable for the implementation of Council goals and policies and the overall performance of the City; (m) Encourage and provide staff support for regional and intergovernmental cooperation; (n) Promote partnerships among the Mayor, Council, staff, and citizens in developing public policy and building a sense of community; (o) Make business and policy recommendations based solely on his or her independent professional judgment and best practices in the interests of the City; and 7.b Packet Pg. 72 Attachment: Attachment 2 - City Charter Adopted 11-8-2016 (7318 : City Charter Amendment Process) San Bernardino Charter Page 7 (p) Perform other such duties as are specified in this Charter, by ordinance, or as may be requested by the Council. ARTICLE V: DEPARTMENTS, SERVICES, OFFICERS AND EMPLOYEES Section 501. General Provisions The City Manager may establish City departments, offices, or agencies in addition to those created by this Charter, subject to approval of the City Council, and may prescribe the functions of all departments, offices and agencies to meet the needs of the community in the most effective and efficient manner. Section 502. Direction by City Manager Each City department, office and agency shall be administered by an executive appointed by and subject to the direction and supervision of the City Manager, except the Offices of the Council, Mayor, City Attorney and City Clerk, the Library Board of Trustees, and the Water Board, which shall be administered by their respective executive officers as provided for elsewhere in this Charter but which shall in all other respects be governed by the policies applicable to all other departments, offices and agencies. With the consent of the Council, the City Manager may serve as the executive of one or more such departments, offices or agencies. The City Manager may appoint one person to serve as the executive of two or more departments. Section 503. Continuation of Departments All departments, agencies, offices, and services in existence at the time this Charter is adopted shall continue in the same manner as before the adoption of this Charter, unless and until changed by ordinance or other action approved by the City Council. Section 504. City Attorney A duly qualified City Attorney shall be hired by a vote of the Mayor and entire Council, as provided in section 304(b) of this Charter. The City Attorney may be removed by the Mayor and entire Council in the same manner. The City Attorney shall serve as chief legal advisor to the Council, the City Manager and all City departments, offices and agencies; shall represent the City in all legal proceedings; and shall perform any other duties prescribed by State law, this Charter or by ordinance. Section 505. City Clerk A duly qualified City Clerk shall be hired by a vote of the Mayor and entire Council, as provided in section 304(b) of this Charter. The City Clerk may be removed by the Mayor and entire Council in the same manner. The City Clerk shall give notice of Council meetings to its members and the public, keep the journal of its proceedings, and shall perform any other duties prescribed by State law, this Charter or by ordinance. 7.b Packet Pg. 73 Attachment: Attachment 2 - City Charter Adopted 11-8-2016 (7318 : City Charter Amendment Process) San Bernardino Charter Page 8 Section 506. Departmental Administrators; Appointive Powers Each departmental executive shall have the power to appoint, supervise, suspend, or remove such assistants, deputies, subordinates and employees as are provided for the department, subject to the approval of the City Manager and subject to the provisions of the personnel rules and regulations adopted by the Council. Section 507. Services The City shall provide for a municipal police department. The City also shall provide for community development, finance, fire and emergency medical services, information technology, library, parks and recreation, personnel, public works, water and wastewater, and such other services as the Council deems appropriate for the public’s health, safety and welfare. Section 508. Personnel System All appointments and promotions of City officers and employees shall be made solely on the basis of merit and fitness demonstrated by a valid and reliable examination or other evidence of competence. The administration of employee matters shall be delegated to a personnel or human resources department. Consistent with all applicable Federal and State laws, the Council shall provide for the establishment, regulation and maintenance of a merit system and governing personnel rules and regulations necessary for the effective administration of the employees of the City’s departments, offices and agencies. Such personnel rules and regulations may include but are not limited to classification and pay plans, examinations, force reduction, removals, working conditions, provisional and exempt appointments, in-service training, grievances and relationships with employee organizations. Section 509. Official Bonds. The Council shall fix by resolution the amounts and terms of the official bonds of all officers or employees who are required by the Council to acquire such bonds. All bonds shall be executed by a responsible corporate surety, shall be approved as to form by the City Attorney, and shall be filed with the City Clerk. Premiums on official bonds shall be paid by the City. There shall be no personal liability upon, or any right to recover against, a superior officer, or his or her bond, for any wrongful act or omission of his or her subordinate, unless such superior officer was a party to, or conspired in, such wrongful act or omission. ARTICLE VI: BOARDS, COMMISSIONS AND COMMITTEES Section 600. General Provisions Each board, commission and committee established prior to the adoption of this Charter shall continue to exist, exercise the powers and perform the duties assigned to it upon adoption of this Charter. However, the Council may alter the structure, membership, powers and duties of 7.b Packet Pg. 74 Attachment: Attachment 2 - City Charter Adopted 11-8-2016 (7318 : City Charter Amendment Process) San Bernardino Charter Page 9 boards, commissions and committees. The Council also may abolish or create particular boards, commissions and committees, provided that the Council may not abolish the Commissions or Boards specifically provided for in this Charter. The Council may grant powers and duties to boards, commissions and committees that are consistent with the provisions of this Charter. Section 601. Appointment, Removal, Terms of Office and Procedural Rules Except as provided elsewhere in this Charter, the appointment, removal, and terms of office of boards, commissions, committees and their members and the rules and regulations pertaining to the conduct of board, commission or committee business shall be as prescribed by a vote of the Mayor and entire Council, as provided in section 304(b) of this Charter. Members of boards, commissions and committees shall be residents of the City, unless exempted by ordinance or State law. Section 602. Library A Library Board of Trustees consisting of five (5) members shall be appointed by a vote of the Mayor and entire Council, as provided in section 304(b) to serve without compensation. The Mayor and entire Council may remove Trustees in the same manner. The Board shall: (a) Be responsible for providing adequate library services; (b) Appoint a Library Director; (c) Administer the Library budget allocated by the Council; (d) Make and enforce all rules and regulations applicable to library services; and (e) Administer such additional matters as may be determined by ordinance. Section 603. Water and Wastewater A Water Board of five (5) Commissioners shall be appointed by a vote of the Mayor and entire Council, as provided in section 304(b). Commissioners shall serve terms of six (6) years each, staggered in the same manner as at the time of the adoption of this Charter. Any one or more of these Commissioners may be removed by a vote of the Mayor and entire Council. The Board shall have the following powers and responsibilities: (a) Be responsible to oversee and manage the City’s water supply, recycled water, wastewater collection and treatment (“Water and Wastewater Systems”) functions in accordance with State law. (b) Employ such persons, including a general manager, as may be needed for proper administration of the City’s Water and Wastewater Systems. (c) Set and collect all rates, fees and charges for operation of the Water and Wastewater Systems. (d) Allocate all receipts and expenditures to separate, independent, Water and Sewer Funds in accordance with State law. (e) Provide for an annual, independent audit of all water and wastewater accounts, and may provide for more frequent audits as it deems necessary. Copies of all auditors’ reports shall be filed with the City Clerk and Council. 7.b Packet Pg. 75 Attachment: Attachment 2 - City Charter Adopted 11-8-2016 (7318 : City Charter Amendment Process) San Bernardino Charter Page (f) Compensate members of the Water Board in accordance with actions of the Water Board following public hearing. (g) Collaborate with the Council, Mayor and City Manager concerning the City’s Water and Wastewater Systems. In this regard, the Council shall take such actions as may be appropriate to enforce rules and regulations of the Board. (h) Establish and periodically review and revise such rules and regulations as may be appropriate for managing the City’s Water and Wastewater Systems. Section 604. Personnel Commission A Personnel Commission consisting of five (5) members shall be appointed by a vote of the Mayor and entire Council, as provided for in section 304(b) of this Charter, to serve without compensation. The Mayor and entire Council may remove Commissioners in the same manner. The Commission’s sole responsibility shall be to hear appeals of disciplinary action by City employees, subject to the provisions of adopted labor agreements. Decisions of the Commission shall be final without further review within the City. ARTICLE VII: FINANCIAL MANAGEMENT Section 700. Fiscal Year The fiscal year of the City shall begin on the first day of July of each year and end on the last day of June of the following year. The Council may change the fiscal year by ordinance. Section 701. Submission of Budget and Budget Message At least sixty (60) days prior to the beginning of each fiscal year, the City Manager shall prepare and submit to the Mayor and Council the proposed budget and an accompanying message. The City Manager’s budget message shall explain the budget both in fiscal terms and in terms of the work programs, linking those programs to organizational goals and community priorities. It shall outline the proposed financial policies of the City for the ensuing fiscal year and the impact of those policies on future years. It shall describe the important features of the budget and indicate any major changes from the current year in financial policies, expenditures, and revenues, together with the reasons for such changes. It shall summarize the City’s debt position, including factors affecting the ability to raise resources through debt issues, and include other such material as the City Manager deems desirable. Section 702. Budget and Capital Improvement Program The budget shall provide a complete financial plan of all City funds and activities for the ensuing fiscal year and, except as required by law or this Charter, shall be in such form as the City Manager deems desirable or the Council or Mayor may request for effective management and understanding of the relationship between the budget and the City’s strategic goals. In addition, the City Manager shall prepare and submit a multi-year capital improvement plan 7.b Packet Pg. 76 Attachment: Attachment 2 - City Charter Adopted 11-8-2016 (7318 : City Charter Amendment Process) San Bernardino Charter Page (CIP). The CIP shall be revised and extended each year with regard to capital improvements still pending or in the process of construction or acquisition. The City’s budget and CIP should strive to achieve the best practice standards set by the Government Finance Officers Association (GFOA) for distinguished budget presentation. Section 703. Council Action on the Budget and Capital Improvement Plan The Council shall publish a general summary of the budget and CIP and hold one (1) or more public hearings. After the public hearing(s), the Budget and CIP shall be adopted, as they may be amended, by the Council before the beginning of each fiscal year. Section 704. Independent Audit The Council shall provide for an annual independent audit of all City accounts and may provide for more frequent audits as it deems necessary. An independent certified public accountant or firm of such accountants shall make such audits, which should be performed in accordance with General Accepted Auditing Standards (GAAS) and Generally Accepted Governmental Auditing Standards (GAGAS). Using competitive bidding, the Council shall designate such accountant or firm for a period not to exceed five (5) years. As soon as practicable after the end of the fiscal year, a final certified audit and report shall be submitted by such accountant to the Mayor, each member of the Council, the City Manager, Finance Director and City Attorney. Three (3) additional copies shall be placed on file in the office of the City Clerk, where they shall be available for inspection by the general public, and the audit and report shall be published on the City’s website. Section 800. City Elections Article VIII: ELECTIONS Beginning in 2018, primary and general election shall be held in said City in consolidation with the State Primary Election and the State General Election and every two (2) years thereafter. City elections shall follow the provisions and procedures of the State Elections Code as applicable to general law cities. The Mayor and Council members shall be sworn in and begin their term of service upon certification of the election results, and shall serve until their successors qualify. To facilitate the transition of elections from odd to even numbered years, consistent with the timing of elections for state and federal offices, the terms of the Mayor and each Council member in office at the time of the adoption of this Charter shall be extended for one (1) year. Section 801. Elective Officers; Terms The elective officers of the City shall consist of a Mayor and seven Council members. Council members shall continue to be elected for terms of four (4) years, with such terms staggered between the wards as established by ordinance. Each Council member shall be elected by ward 7.b Packet Pg. 77 Attachment: Attachment 2 - City Charter Adopted 11-8-2016 (7318 : City Charter Amendment Process) San Bernardino Charter Page by the voters within that ward. The Mayor shall continue to be elected at large for a term of four (4) years. Section 802. Number of Wards There shall be seven (7) wards. Section 803. Adjustment of Ward Boundaries Periodic adjustments to ward boundaries shall be made to maintain each in compact form and as nearly equal in population as possible, consistent with applicable State and Federal laws. ARTICLE IX: INITIATIVE, CITIZEN REFERENDUM AND RECALL Section 900. Initiative, Citizen Referendum and Recall Initiatives, citizen referenda, and recalls shall follow the procedures of the State Elections Code, as applicable to general law cities. ARTICLE X: CHARTER AMENDMENTS Section 1000. Charter Amendments Amendments to this Charter shall be made in accordance with the procedures of the State Elections Code, as applicable to charter cities. Section 1001. Periodic Review of Charter By December 2017, the Council shall establish a process to ensure the periodic review of this Charter to identify potential amendments that enhance clarity, efficiency, and the principles of the council-manager form of government. Section 1100. Severability ARTICLE XI: SEVERABILITY If any provision of this Charter is held invalid, the other provisions of the Charter shall not be affected. If the application of the Charter or any of its provisions to any persons or circumstance is held invalid, the application of the Charter and its provisions to other persons or circumstances shall not be affected. 7.b Packet Pg. 78 Attachment: Attachment 2 - City Charter Adopted 11-8-2016 (7318 : City Charter Amendment Process) Page 1 Discussion City of San Bernardino Request for Council Action Date: May 19, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: Information on Warehousing Uses Recommendation Staff recommends the City Council review the report and provide direction regarding whether it wishes to consider warehouse development standards as planned (i.e., as part of the update to the General Plan and Development Code) or if it wishes for staff to prepare an urgency ordinance for more immediate consideration. Background At the April 7, 2021, Mayor and City Council meeting, the City Council requested staff bring back an item to consider the possible future establishment of a city-wide moratorium on new warehouse construction. Discussion Over the last two decades, the Inland Empire has grown as a key logistics hub on the west coast. While there are economic benefits to the growth of this secto r there are also challenges that must be considered as we evaluate land use issues in the City moving forward including traffic and safety, infrastructure, environmental and health issues. Over the last 16 years, since the City’s General Plan was last updated, there has been a marked increase in industrial development including warehouse, distribution, logistics, fulfillment center, manufacturing and other similar development in the City’s industrial and heavy commercial zoning districts. Additionally there are several Specific Plans that allow for the establishment of heavy trucking and warehousing uses around the San Bernardino International Airport and along the Cajon corridor to the west of the I - 215 Freeway. For the benefit of this discussion, the term “warehouse” will be used to refer to all of these uses. Since 2015, the City has processed and approved 26 warehouse projects equaling 9,598,255 square feet. The City is currently processing three warehouse projects and five truck storage facilities. As the Planning Division processes warehouse entitlements, staff has identified that the land use classifications, definitions, development standards, performance standards, and design guidelines are not 8 Packet Pg. 79 7314 Page 2 adequate for ensuring quality development that is compatible with surrounding land uses. To address these concerns, the update to the City’s General Plan and Development Code is currently underway and will include an evaluation of warehouse uses. The issues that will be addressed as part of this ana lysis include land use compatibility, traffic and safety, infrastructure, environmental and health. The update to the General Plan and Development Code will include evaluating the positive and negative impacts associated with warehouse development and operations in the community. If the City Council wishes to consider changing direction and proceeding with a moratorium before the General Plan and Development Code update are completed, the following describes the Government Code requirements. Urgency Ordinance. An urgency ordinance could prohibit the establishment, expansion, or modification of a warehouse oriented use anywhere within the City, and prohibit the City from accepting any new application or issuing any permits or entitlements to those that submit applications following the posting of the agenda for the consideration of a moratorium. Pursuant to Government Code Section 65858, an urgency ordinance establishing a moratorium requires an affirmative vote of 4/5 th of the City Council to be adopted. If adopted, the moratorium continues in effect for 45 days unless extended by Council action. Depending on whether the original moratorium was noticed or not, the ordinance may be extended either: (1) by an additional 22 months and 15 days; or (2) by an additional 10 months and 15 days and subsequently by an additional 12 months. In no event may a moratorium last for more than two years. While the moratorium is in effect, City staff would be required to study the issue and bring back proposed standards for Council consideration. 2020-2025 Key Strategic Targets and Goals The consideration of a warehouse oriented moratorium aligns with Key Target No. 3: Improved Quality of Life. Specifically, the general intent of this action would be to evaluate the impacts associated with Warehouse development and operations identifying solutions for improving the quality of life in San Bernardino. Fiscal Impact There is no fiscal impact related to the consideration of this item. Conclusion Staff recommends the City Council provide direction regarding whether it wishes to consider warehouse development standards as planned (i.e., as part of the update to the General Plan and Development Code) or if it wishes for staff to prepare an urgency ordinance for more immediate consideration. Attachments None 8 Packet Pg. 80 7314 Page 3 Ward: All Synopsis of Previous Council Action: April 7, 2021 City Council Agenda, Council Reynoso requested that the City Council consider the establishment of a Citywide Warehouse Moratorium at a future Council meeting. 8 Packet Pg. 81 Page 1 Discussion City of San Bernardino Request for Council Action Date: May 19, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Kris Jensen, Director of Public Works Subject: Commercial Truck Route Implementation (Ward All) Recommendation Provide direction on the establishment of commercial truck routes in the City. Background California Vehicle Code section 35701 grants local agencies the authority to establish truck routes on city streets and to prohibit trucks on other streets through adoption of an ordinance or a combination of ordinances and resolutions. Truck routes are established as a means to effectively carry commercial vehicles between Interstate Highways, California State Highways, and commercial zones in the City. Establishing commercial truck routes provides community benefits by reducing infrastructure maintenance costs, improving mobility and traffic flow, reducing traffic incidents, providing for more efficient delivery of goods, and reduces impacts associated with air quality and noise resulting from commercial truck travel. Section 10.24.190 of the City’s Municipal Code currently prohibits the operation of any commercial vehicle on specifically identified street segments and f urther establishes restrictions for commercial vehicles based on gross vehicle weight thresholds for additional street segments. (Attachment No. 1). While the City has established initial commercial vehicle travel prohibitions over the years, a comprehensive evaluation to develop designated commercial truck routes city-wide has not been completed. At the request of the Mayor and City Council, this report is being provided to outline the steps necessary to establish commercial truck routes within the City. Discussion The establishment of designated commercial truck routes provides for the efficient flow of goods through the City to maximize local economic growth while reducing the impacts of commercial truck travel on the community. As the nature of goods movement has changed, and land uses throughout the City and surrounding areas are updated, the characteristics on how trucks can navigate from highways through the City continues to be a challenge. These factors have resulted in commercial trucks using major arterials, secondary streets and even collector streets for deliveries, shipments of goods, and general paths of travel between highways that surround the City. When 9 Packet Pg. 82 7311 Page 2 commercial truck routes are established it will be important that the City also incorpo rate a robust commercial enforcement program that ensures adherence to the City’s established regulations. In order to designate truck routes in the City, a comprehensive study must be conducted to provide background information, evaluate local traffic patterns and zoning, and identify existing polices and regulations at the federal, state, and local levels that govern truck operations. Development of an effective recommendation for specific truck routes requires thorough evaluation of complex data relative to current traffic patterns, vehicle types and roadway conditions within the City. It also requires the ability to anticipate the future commercial truck route needs of the City based on current land use and consistency with the General Plan. The steps for the development and implementation of commercial truck routes would require that the City: 1. Establish professional consultant services to perform a truck route study: a. Develop and issue a request for proposals b. Evaluate proposals c. Award consultant services contract 2. Complete a comprehensive truck route study: a. Evaluate existing street network and classifications b. Evaluate and identify zoning that would generate truck traffic c. Perform vehicle classifications counts to determine the mix of vehicles on the City’s arterial network. d. Develop truck route maps e. Perform CEQA Analysis f. Draft recommendations and guidelines document 3. Conduct a public review: a. Provide public notice and opportunity for comment 4. Prepare a final report for recommendation: a. Incorporate comments received from the public and other agencies b. Address any additional concerns within the final document 5. Adopt an approved truck route map by way of ordinance of the Mayor and City Council: a. Incorporate updates into existing Municipal Code sections 6. Enforcement of established truck routes: a. Installation of roadway signage b. Establish a Public Safety enforcement program The evaluation of commercial truck routes is typically performed in concert with the development of the General Plan Circulation and Land Use Elements. Inclusion in the 9 Packet Pg. 83 7311 Page 3 General Plan update process ensures internal connectivity between the various elements of the General Plan. If done separately, it is estimated that development and implementation of a commercial truck route independent of the General Plan process will require a minimum of two years to complete. There are agencies that may provide technical information or services that can be used to support the commercial truck route study process. Research performed by the Bourns College of Engineering, Center for Environmental Research & Technology (CE - CERT) at the University of California, Riverside (UCR) provides technical analysis related to the environmental impacts of t ransportation that may assist the City in the development of truck route regulation and policy. Similarly, Environmental Systems Research Institute (ESRI) in Redlands may be a source of support for providing maps and mapped data for any approved route implementation. It is important to note that services or information provided by agencies such as CE-CERT and ESRI may supplement the evaluation process, but do not replace the need to perform a comprehensive study to establish commercial truck routes. 2020-2025 Strategic Targets and Goals The establishment of Commercial Truck Routes aligns with Key Target No. 3: Improved Quality of Life. Specifically, the general intent of this action would be to establish Commercial Truck Routes minimizing impacts to the community and improving the quality of life in San Bernardino. Fiscal Impact There is no fiscal impact associated with this item. Conclusion It is recommended that the Mayor and City Council provide direction to staff on the establishment of commercial truck routes in the City. Attachments Attachment 1 San Bernardino Municipal Code Chapter 10, Section 10.24.190 Commercial Vehicles Prohibited on Certain Streets. Ward: All Synopsis of Previous Council Actions: 9 Packet Pg. 84 872 10.24.180 Speed limit on public grounds It is unlawful for any person to drive or operate a motor vehicle on any roadway, road, alley or way, or upon the grounds of a public park, playground or public school or of a county or municipal institution or building, or of an educational institution or building, at a speed in excess of fifteen miles per hour. (Ord. MC-460, 5-15-85; Ord. 2579, 5-26-64; Ord. 1652, 3-18-41) 10.24.190 Commercial Vehicles Prohibited on Certain Streets A. Pursuant to the authority and restrictions of Vehicle Code Sections 35701, et seq., no person shall operate or drive any commercial vehicle upon the following streets, and the Traffic Engineer shall cause appropriate signage to be erected giving notice thereof: 1. Palmyra Drive between Sierra Way and Sonora Drive; 2. Arlington Drive between Palmyra Drive and its terminus three hundred feet to the southeast; 3. Lugo Avenue between Palmyra Drive and Ralston Avenue; 4. Thirty-Ninth Street between Lugo Avenue and its terminus two-hundred ninety feet to the east; 5. Thirty-Ninth Street between Palmyra Drive and Belle Street; 6.Ralston Avenue between Waterman Avenue and Sonora Drive; 7. Belle Street between Ralston Avenue and Thirty-Ninth Street; 8. Sonora Drive between Palmyra Drive and its terminus two-hundred sixty feet to the southeast; 9. Sonora Drive between Palmyra Drive and its terminus two-hundred sixty feet to the southeast; 10. Twenty-Fourth Street between Lincoln Drive and "I" Street; 11. Twenty-Fifth Street between Lincoln Drive and "I" Street; 12. Twenty-Sixth Street between Lincoln Drive and "I" Street; [Rev. April 2021] [Return to Municipal Code Contents] [Return to Title 10 Contents] 9.a Packet Pg. 85 Attachment: Attachment 1 - San Bernardino Municipal Code Chapter 10, Section 10.24.190 Commercial Vehicles Prohibited on Certain Streets. 873 13. "I" Street between Twenty-Third Street and Twenty-Seventh Street; 14. Davidson Street between Tippecanoe Avenue and Richardson Street; 15. Hardt Street between Tippecanoe Avenue and Richardson Street; 16. Gould Street between Tippecanoe Avenue and Richardson Street; 17. Coulston Street between Tippecanoe Avenue and Richardson Street; 18.Tia Juana Street between Fourth Street and Fifth Street; 19. Cabrera Avenue between Fourth Street and Fifth Street; 20. Kingman Street between Tia Juana Street and Mt. Vernon Avenue. 21. Poplar Street between Pepper Avenue and Meridian Avenue. 22. Meridian Avenue between Mill Street and the end of Meridian Avenue north of Walnut Street. 23. Mt. Vernon Avenue between 5th Street and 2nd Street (Mt. Vernon Avenue Bridge), except for commercial pickup trucks, vans, and passenger cars. (Ord. MC-1283, 9-03-08) B. Pursuant to the authority and restrictions of Vehicle Code Sections 35701, et seq., no person shall operate or drive any vehicle exceeding a maximum gross weight limit of ten thousand pounds upon the following streets, and the Director of Public Services shall cause appropriate signs to be erected giving notice of such weight limitation prohibition: 1. Airport Drive; 2. Arrowhead Avenue, between Marshall Boulevard and Kendall Drive; Belleview Street, between "K" Street and "I" Street; (Ord. MC-1410, 12-01-14) 3. Businesscenter Drive; 4. Commercenter Circle; [Rev. April 2021] [Return to Municipal Code Contents] [Return to Title 10 Contents] 9.a Packet Pg. 86 Attachment: Attachment 1 - San Bernardino Municipal Code Chapter 10, Section 10.24.190 Commercial Vehicles Prohibited on Certain Streets. 874 5.Commercenter East; 6.Commercenter West; Congress Street, between "K" Street and "I" Street; (Ord. MC-1410, 12-01-14) 7. Diners Court; "I" Street, between Congress Street and the end of "I" Street approximately 300 feet north of Belleview Street (Rialto Avenue); (Ord. MC-1410, 12-01-14) "J" Street, between Rialto Avenue and the end of "J" Street approximately 1,000 feet south of Congress Street; (Ord. MC-1410, 12-01-14) 8. San Bernardino Civic Plaza Access Loop; 9. Sunwest Lane, between Hospitality Lane and "E" Street; 10. Meridian Avenue Between Rialto Avenue and 170 Feet North of 9th Street; 11.Belleview Street between "K" Street and "I" Street; 12.Congress Street between "K" and "I" Street; 13."J" Street between Rialto Avenue and the end of "J" Street approximately 1,000 feet south of Congress Street; 14."I" Street between Congress Street and the end of "I" Street approximately 300 feet north of Belleview Street (Rialto Avenue). (Ord. MC-1398, 4-21-14) [Rev. April 2021] [Return to Municipal Code Contents] [Return to Title 10 Contents] 9.a Packet Pg. 87 Attachment: Attachment 1 - San Bernardino Municipal Code Chapter 10, Section 10.24.190 Commercial Vehicles Prohibited on Certain Streets. 875 C. Pursuant to the authority and restrictions of Vehicle Code Sections 35701, 35703, et seq., no person shall operate or drive any commercial vehicle having a manufacturer's Gross Vehicle Weight rating (GVWR) exceeding thirty thousand (30,000) pounds upon the following streets, and the Director of Public Services shall cause appropriate signs to be erected giving notice of such weight limitation prohibition: 1. 40th Street, east of Harrison Street for a distance of five hundred (500) feet; 2 40th Street, west of Waterman Avenue to Acacia; 3. Valencia Avenue, between 40th Street and 30th Street; 4. Parkside Drive, between 40th Street and 30th Street; 5. Sierra Way, from the Highway 18 junction to 30th Street; 6. Mountain View Avenue, from its merge with Electric Avenue to 30th Street; 7. Electric Avenue, from 40th Street to its merge with Mountain View Avenue; 8. Hospitality Lane, from E Street to Waterman Avenue; 9. Hunts Lane, from Hospitality Lane to E Street (Ord. MC-1139, 3-04-03; Ord. MC-1133, 11-20-02; Ord. MC-1110, 12-04-01; Ord. MC-1079, 8-23-00; Ord. MC-1046; 5-05-99; Ord. MC-465, 7-02-85; Ord. MC-344, 2-22-84; Ord. MC-80, 7-08-81; Ord. 3718, 4-19-78; Ord. 2915, 6-25-68; Ord. 1652, 3-18-41) 10.24.200 Municipal parking lots and structures A. A municipal parking facility is a parking lot, parcel of land, facility, garage or structure owned, leased or operated by the City, or in which the City has a possessory right of interest, and which is used as a municipal or public parking facility for the off-street parking of vehicles. B.It is unlawful in any municipal parking facility for any person to park or leave standing any vehicle, whether attended or unattended, in any driveway, aisle, walk or area other than entirely within a designated parking space or in any location or position across any line or marking designating a parking space. [Rev. April 2021] [Return to Municipal Code Contents] [Return to Title 10 Contents] 9.a Packet Pg. 88 Attachment: Attachment 1 - San Bernardino Municipal Code Chapter 10, Section 10.24.190 Commercial Vehicles Prohibited on Certain Streets. Page 1 Discussion City of San Bernardino Request for Council Action Date: May 19, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Barbara Whitehorn, Director of Finance Subject: Successor Agency Action: Final Approval of 2010A Series Tax Allocation Bond Refunding (All Wards) Recommendation Adopt Resolution No. 2021-113 of the Mayor and City Council of the City of San Bernardino, California, acting in the capacity as the Successor Agency to the Redevelopment Agency of the City of San Bernardino, approving a form of preliminary official statement in connection with the sale and delivery of its tax allocation refunding bonds; making certain determinations relating thereto; and authorizing certain other action in connection therewith. Background On March 17, 2021, the Mayor and City Council, acting in the capacity as the Successor Agency to the Redevelopment Agency of the City of San Bernardino , approved the issuance of federally taxable Tax Allocation Refunding Bonds (the “2021 Bonds”) to repay the 2010A Bonds and to use project funds no longer eligible to be spent (along with the 2010B bond reserve fund) to pay off the 2010B Bonds. Following approval by the Countywide Oversight Board and the Department of Finance, the final step in the refunding plan process includes Successor Agency approval of the preliminary bond Official Statement. On December 1, 2010, the Mayor and City Council, acting in their capacity as the Community Development Commission (the governing body of the City’s former Redevelopment Agency), authorized the issuance of both taxable Tax Allocation Bonds (“TABs”) through the Federal American Recovery and Reinvestment Act of 2009 and tax-exempt TABs. The purpose of the bonds, per the re solution approving the issuance, was to finance “the 4th Street Corridor Project and for the Northwest Redevelopment Project Area Infrastructure Projects.” Although authority was granted to issue up to $7,068,000 in taxable TABs and $6,000,000 in tax-exempt TABs, ultimately $7,065,000 in taxable TABs (2010 A Series) and $3,220,000 in tax-exempt TABs (2010 B Series) were issued. After deducting costs related to issuance and amounts legally required to be set aside for the reserve fund, proceeds available for projects from the 2010A TABs were $6,045,429 and proceeds available for projects from the 2010B Series TABs were $2,701,558. 10 Packet Pg. 89 7307 Page 2 Dissolution of Redevelopment Agencies By action of the California State Legislature (and after several court challenges) Redevelopment Agencies were officially dissolved as of February 1, 2012 (the “Dissolution Act”). In 2015, additional state legislation was approved requiring, among other conditions, that proceeds from bonds issued on or before December 31, 2010, could be utilized as planned; however, for bonds issued on or after January 1, 2011, only a percentage of the proceeds could be retained and utilized as planned. The 2010A Series Bonds were issued in December 2010; therefore, all of the proceeds designated for projects ($6,045,429) were available to the City as planned. However, the 2010B Series Bonds (referred to as the Series 2011 Authority Bonds in the Resolution) were not issued until February 2011. Additionally, subsequent 2015 legislation was adopted limiting the use of the 2010B Bond proceeds. The Dissolution Act allows 40% ($1,080,623) of the 2010B Bonds to be used by the Successor Agency for projects. Further complicating matters is the Dissolution Act restriction that, until the full and final Recognized Obligation Payment Schedule (ROPS) is completed, only $135,078 of the $1,080,623 is immediately available. In order for the City to use the bond proceeds deemed allowable, on March 21, 2016, the Mayor and City Council authorized a bond expenditure agre ement between the City of San Bernardino and the Successor Agency to the former Redevelopment Agency to utilize the bond proceeds for their intended purposes and the DOF approved the agreement in May 2016. The outstanding 2010A TABs bear interest at 9.3% per annum (5.3% net of the Federal subsidy), while the outstanding 2010B TABs bear interest at 7% per annum. As of May 1, 2021, the principal amounts outstanding on the 2010A and 2010B TABs were $4,250,000 and $1,755,000, respectively. On March 17, 2021, the Successor Agency approved the issuance of federally taxable Tax Allocation Refunding Bonds (the “2021 Bonds”) to repay the 2010A Bonds and to use project funds no longer eligible to be spent (along with the 2010B bond reserve fund) to pay off the 2010B Bonds. On April 5, 2021, the County Oversight Board took a similar action to approve the issuance of the 2021 Bonds and to defease the 2010B Bonds. The State Department of Finance (“DOF”) is now in the process of reviewing the proposed issuance of the Series 2021 Bonds. By law, the DOF has 60 days to review and approve or deny the proposed bond issue. The DOF is expected to approve the Successor Agency’s refinancing plan no later than June 9, 2021. The $1,755,000 in Series 2010B Bonds were redeemed on May 10, 2021. Discussion At this time, the Successor Agency is being requested to approve the form of the preliminary bond Official Statement for the Series 2021 Bonds refunding the $4,250,000 in Series 2010A Bonds. The Successor Agency will also authorize st aff to finalize the bond Official Statement after the bonds are sold. The Official Statement is the primary disclosure document related to the bonds. This approval is the final step in the process 10 Packet Pg. 90 7307 Page 3 to complete the bond refinancing plan. The final maturity of the 2021 Bonds will be October 1, 2029 , which is six months prior to the original maturity date of the 2010A TABs (April 1, 2030). Based on the most recent estimates from the City’s municipal advisor (Columbia Capital Management), the refunding program, including the issuance of the Series 2021 Bonds and the redemption of the Series 2010B Bonds, will generate a total cash flow savings of approximately $3.8 million. Note that these savings are only an estimate at this time and will fluctuate up or down based on the final pricing of the bonds expected in June 2021. The savings generated from refunding the 2010A and redemption of the 2010B Bonds will flow into the County’s Residual Property Tax Trust Fund (RPTTF) for distribution among state and local agencies. Although the City would not directly benefit immediately from the savings, the City’s share of the funds would ultimately flow back to the City via the re - opener clauses in the City’s annexation agreement with the County Fire Protection District. See below for a comparison of the total debt service payments (including both interest and principal) under the existing 2010A and 2010B bonds to the debt service payments under the proposed refunding and bond retirement program. Interest rates have been rising and final refunding results will depend on market conditions at time of sale. Payment Date Prior Debt Service Payments (Principal + Interest) Less: Federal Subsidy Net Prior Debt Service Refunding Debt Service Savings Cumulative Savings 10/1/2021 257,988$ (83,421)$ 174,566$ 14,851$ 159,716$ 159,716$ 4/1/2022 672,988 (83,421) 589,566 32,206 557,360 717,076 10/1/2022 239,806 (77,042) 162,764 487,206 (324,442) 392,634 4/1/2023 669,806 (77,042) 592,764 30,773 561,991 954,625 10/1/2023 220,763 (70,074) 150,689 485,773 (335,084) 619,541 4/1/2024 605,763 (70,074) 535,689 28,748 506,941 1,126,482 10/1/2024 202,956 (62,517) 140,439 488,748 (348,309) 778,173 4/1/2025 647,956 (62,517) 585,439 25,804 559,635 1,337,808 10/1/2025 182,656 (54,273) 128,383 490,804 (362,421) 975,387 4/1/2026 837,656 (54,273) 783,383 22,480 760,904 1,736,291 10/1/2026 154,556 (45,244) 109,313 492,480 (383,167) 1,353,124 4/1/2027 1,344,556 (45,244) 1,299,313 17,944 1,281,369 2,634,493 10/1/2027 107,281 (35,429) 71,852 502,944 (431,092) 2,203,401 4/1/2028 1,337,281 (35,429) 1,301,852 12,779 1,289,073 3,492,474 10/1/2028 58,044 (24,634) 33,410 507,779 (474,369) 3,018,105 4/1/2029 658,044 (24,634) 633,410 6,641 626,769 3,644,874 10/1/2029 30,294 (12,857) 17,437 511,641 (494,204) 3,150,671 4/1/2030 685,294 (12,857) 672,437 - 672,437 3,823,108 TOTAL 8,913,688$ (930,980)$ 7,982,708$ 4,159,600$ 3,823,108$ All costs associated with issuing the 2021 Bonds (i.e., legal fees, underwriter costs, financial advisor fees, etc.) will be paid from the bond proceeds. In the unlikel y event that the refunding is not approved by the Department of Finance, any issuance costs incurred to date could be placed on a future ROPS to reimburse the Successor Agency. There is no City obligation to pay the costs. The 2021 Refunding Bonds will be secured by a tax revenue pledge from the Northwest Project Area. The 2021 Refunding Bonds will additionally be secured by a pledge of 10 Packet Pg. 91 7307 Page 4 Redevelopment Property Tax Trust Fund (RPTTF) monies. It is expected that the 2021 Refunding Bonds will receive a ratin g from Standard & Poor’s of “A” or “A+” based on the project area characteristics, high debt service coverage, and limited term. It is expected that the 2021 Refunding Bonds will qualify for a bond reserve fund surety policy. 2020-2025 Key Strategic Targets and Goals Refunding the 2010A Series TABs aligns with Key Target No . 1: Financial Stability by reducing the interest paid over the remaining term of the bonds. Fiscal Impact There is no fiscal impact to the General Fund as a result of this action. How ever, the savings expected to be realized by the Successor Agency Private -Purpose Trust Fund is approximately $3.8 million over the remaining term of the bonds. All costs associated with the bond issuance will be covered by the bond proceeds. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, acting in the capacity as the Successor Agency to the Redevelopment Agency of the City of San Bernardino , adopt Resolution No. 2021-113 , approving a form of preliminary official statement in connection with the sale and delivery of its tax allocation refunding bonds; making certain determinations relating thereto; and authorizing certain other action in connection therewith. Attachments Attachment 1 Resolution 2021-113 Attachment 2 Resolution 2021-113; Exhibit A Attachment 3 Preliminary Bond Official Statement Ward: All Synopsis of Previous Council Actions: March 17, 2021 Mayor and City Council adopted Resolution No. 2021-56, authorizing the refunding plan for the 2010A and 2010B bonds. 10 Packet Pg. 92 1 RESOLUTION NO. 2021-113 RESOLUTION OF THE MAYOR AND CITY COUNCIL ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING A FORM OF PRELIMINARY OFFICIAL STATEMENT IN CONNECTION WITH THE SALE AND DELIVERY OF ITS TAX ALLOCATION REFUNDING BONDS; MAKING CERTAIN DETERMINATIONS RELATING THERETO; AND AUTHORIZING CERTAIN OTHER ACTION IN CONNECTION THEREWITH WHEREAS, pursuant to the Community Redevelopment Law (Part 1 of Division 24 of the Health and Safety Code of the State of California and referred to herein as the “Law”), the Mayor and City Council, City of San Bernardino (the “City”) created the Redevelopment Agency of the City of San Bernardino (the “RDA”); and WHEREAS, the RDA was a redevelopment agency, a public body, corporate and politic duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Law, and the powers of such agency included the power to issue bonds for any of its corporate purposes; and WHEREAS, the City agreed to serve as the successor agency (referred to herein as the “Successor Agency”) to the RDA commencing upon the dissolution of the RDA on February 1, 2012 pursuant to Assembly Bill X1 26 (“AB X1 26”); and WHEREAS, on June 27, 2012 as part of the Fiscal Year 2012-2013 State of California budget bill, the Governor signed into law Assembly Bill 1484 (the “AB 1484”), which modified or added to some of the provisions of AB X1 26, including provisions related to the refunding of outstanding redevelopment agency bonds and the expenditure of remaining bond proceeds derived from redevelopment agency bonds issued on or before December 31, 2010; and WHEREAS, California Health & Safety Code (the “HSC”) § 34177.5(a)(1) authorizes successor agencies to refund outstanding bonds provided that (i) the total interest cost to maturity on the refunding bonds or other indebtedness plus the principal amount of the refunding bonds or other indebtedness shall not exceed the total remaining interest cost to maturity on the bonds or other indebtedness to be refunded plus the remaining principal of the bonds or other indebtedness to be refunded, and (ii) the principal amount of the refunding bonds or other indebtedness shall not exceed the amount required to defease the refunded bonds or other indebtedness, to establish customary debt service reserves, and to pay related costs of issuance; and WHEREAS, March 17, 2021, the Successor Agency adopted Resolution No. 2021-56 (the “Successor Agency Bond Resolution”), determining to proceed with the issuance of bonds to refund all or a portion of certain Outstanding RDA Obligations identified in Exhibit A to the Successor Agency Bond Resolution (the “Outstanding RDA Obligations”) to provide debt service savings to the Successor Agency; and 10.a Packet Pg. 93 Attachment: Attachment 1 - Resolution 2021-113 Successor Agency Action: Final Approval of 2010A Series Tax Allocation Bond Refunding 2 WHEREAS, on April 5, 2021, the Oversight Board adopted its Resolution authorizing the Successor Agency to refund the Outstanding RDA Obligations; and WHEREAS, the Successor Agency has determined, in anticipation of the California Department of Finance issuing its letter authorizing the Successor Agenc y to refund the Outstanding RDA Obligations, to the extent authorized by HSC § 34177.5(a), to issue its Successor Agency to the Redevelopment Agency of the City of San Bernardino Tax Allocation Refunding Bonds, in one or more series, one of which may be federally taxable if determined by bond counsel to be required under federal tax law, and with such other name and series designation as shall be deemed appropriate (the “Refunding Bonds”), for the purpose of (i) refunding all or a portion of the Outstanding RDA Obligations, (ii) paying the costs of issuing the Refunding Bonds, (iii) funding a reserve account and/or providing for a reserve policy or surety for deposit to the reserve account for the Refunding Bonds and (iv) if advisable, paying for the cost of municipal bond insurance and/or a surety to fund the reserve account for the Refunding Bonds in lieu of funding all or a portion of such reserve account with bond proceeds; and WHEREAS, a copy of a form of Official Statement in preliminary form, a final form of which will be executed by the Successor Agency in connection with the issuance, sale and delivery of the Refunding Bonds, is on file with the Secretary and is appended to the staff report that accompanies this Resolution; and WHEREAS, this Resolution has been reviewed with respect to applicability of the California Environmental Quality Act (the “CEQA”), the State CEQA Guidelines (California Code of Regulations, Title 14, §§ 15000 et seq., hereafter the “Guidelines”), and the City’s environmental guidelines; and WHEREAS, this Resolution is not a “project” for purposes of CEQA, as that term is defined by Guidelines § 15378, because this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment, per § 15378(b)(5) of the Guidelines; and WHEREAS, all of the prerequisites with respect to the approval of this Resolution have been met. NOW, THEREFORE, BE IT RESOLVED by the Successor Agency to the Redevelopment Agency of the City of San Bernardino, as follows: Section 1. Recitals. The foregoing recitals are true and correct and are a substantive part of this Resolution. Section 2. Acknowledgement of Prior Approval of Issuance of Refunding Bonds . The Mayor and City Council acting for the Successor Agency, acknowledges that it adopted the Successor Agency Bond Resolution No. 2021-56, and through such Resolution it approved the issuance of the Refunding Bonds and related financing documents. Section 3. Approval of Preliminary Official Statement. The form, terms and provisions of the Preliminary Official Statement on file with the Secretary are approved and the Successor Agency hereby approves the distribution of the Preliminary Official Statement to 10.a Packet Pg. 94 Attachment: Attachment 1 - Resolution 2021-113 Successor Agency Action: Final Approval of 2010A Series Tax Allocation Bond Refunding 3 prospective purchasers of the Refunding Bonds. The Successor Age ncy Chairperson, the Successor Agency Executive Director, the Deputy City Manager and the Successor Agency Secretary (each an “Authorized Officer,” acting for the Successor Agency), each acting alone, is authorized to certify on behalf of the Successor Agency that the Preliminary Official Statement is deemed final as of its date, within the meaning of rule 15c2-12 promulgated under the Securities Exchange Act of 1934. Any Authorized Officer, acting alone, is authorized to execute, at the time of sale of the Refunding Bonds, said form of Preliminary Official Statement as revised to including pricing information in the form of a final Official Statement (the “Official Statement”), with such changes and insertions therein as may be necessary to cause the same t o carry out the intent of this Resolution and as are approved by counsel to the Successor Agency, such approval to be conclusively evidenced by the delivery thereof. Section 4. Other Acts. The officers and staff of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things, which in consultation with Best Best & Krieger LLP, the Successor Agency’s bond counsel, they may deem necessary or advisable in order to consummate the issuance, sale and delivery of the Refunding Bonds, or otherwise effectuate the purposes of this Resolution, and any and all such actions previously taken by such officers or staff members are hereby ratified and confirmed. Section 5. CEQA Findings. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in th is 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. Effective Date. This Resolution shall take effect upon its adoption and execution in the manner as required by the City Charter. APPROVED and ADOPTED by the City Council, acting as the Successor Agency, and signed by the Mayor, acting as the Chair, this 19th day of May, 2021. ________________________________ Chairman Successor Agency to the Redevelopment Agency of the City of San Bernardino Attest: __________________________ Genoveva Rocha, CMC, City Clerk Approve as to Form: _________________________, Sonia Carvalho, City Attorney 10.a Packet Pg. 95 Attachment: Attachment 1 - Resolution 2021-113 Successor Agency Action: Final Approval of 2010A Series Tax Allocation Bond Refunding 4 CERTIFICATION I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted by the Successor Agency to the Redevelopment Agency of the City of San Bernardino, at a meeting thereof, held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 10.a Packet Pg. 96 Attachment: Attachment 1 - Resolution 2021-113 Successor Agency Action: Final Approval of 2010A Series Tax Allocation Bond Refunding A-1 EXHIBIT A PRIOR RDA OBLIGATIONS TO REFUND AND DEFEASE Agency has determined to refund and defease the following outstanding RDA Obligations: (i) Loan Agreement, dated as of December 1, 2010 (the “2010 Loan Agreement”), between the former RDA and the San Bernardino Joint Powers Financing Authority (the “Authority”), which secures the San Bernardino Joint Powers Financing Authority Subordinated Tax Allocation Bonds, Series 2010A (4th Street Corridor Project – Federally Taxable Recovery Zone Economic Development Bonds), originally issued in the amount of $7,065,000 (the “Series 2010A Authority Bonds”). 10.b Packet Pg. 97 Attachment: Attachment 2 - Exhibit A to Resolution 2021-113 (7307 : Successor Agency Action: Final Approval of 2010A Series Tax Allocation PRELIMINARY OFFICIAL STATEMENT DATED _____________, 2021 NEW ISSUE - BOOK-ENTRY ONLY Rating: S&P: “__” (Insured) “__” (Underlying) See the caption “CONCLUDING INFORMATION – Ratings” In the opinion of Best Best & LLP, Bond Counsel to the Agency, based upon an analysis of existing laws, regulations, rulings and court decisions, , interes t on the Series 2021 Bonds is not excluded from gross income for federal income tax purposes under Section 103 of the Internal Rev enue Code of 1986. Bond Counsel is also of the opinion that interest on the Series 2021 Bonds is exempt from State of California personal income taxes. Bond Counsel expresses no opinion regarding any o ther tax consequences related to the ownership or disposition of, or the amount, accrual or receipt of interest on, the Series 2021 Bands. See “TAX MATTERS” herein. $__________ SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TAX ALLOCATION REFUNDING BONDS, SERIES 2021A (FEDERALLY TAXABLE) Dated: Date of Delivery Due: October 1, as shown on the inside front cover page The Successor Agency to the Redevelopment Agency of the City of San Bernardino Tax Allocation Refunding Bonds, Series 2021A (Federally Taxable) (the “Series 2021 Bonds”) will be delivered as fully registered bonds, registered in the name of Cede & Co. as nominee of The Depository Trust Compan y, New York, New York (“DTC”), and will be available to ultimate purchasers (“Beneficial Owners”) in minimum denominations of $5,000 and any integral multiple of $5,000 in excess thereof under the book-entry system maintained by DTC. Beneficial Owners will not be entitled to receive delivery of bonds representing their ownership interest in the Series 2021 Bonds. The principal of, premium if any, and interest (which interest is due April 1 and October 1 of each year, commencing October 1, 2021) on the Series 2021 Bonds will be payable by U.S. Bank, National Association, as trustee (the “Trustee”), to DTC for subsequent disbursement to DTC Participants, so long as DTC or its nominee remains the registered owner of the Series 2021 Bonds. See the caption “THE SERIES 2021 BONDS – Book- Entry System.” The Series 2021 Bonds are being issued pursuant to an Indenture of Trust, dated as of __________ 1, 2021 (the “Indenture”), by and between the Trustee and the Successor Agency to the Redevelopment Agency of the City of San Bernardino (the “Agency”): (i) to refund and defease certain obligations of the former Redevelopment Agency of the City of San Bernardino (the “Former Agency”) outstanding as of May 1, 2021 in the aggregate principal amount of $4,250,000, as described under the caption “REFUNDING PLAN”; (ii) to purchase a bond insurance policy and a Municipal Bond Debt Service Reserve Insurance Policy for deposit in the Reserve Account; and (iii) to pay certain costs of issuance of the Series 2021 Bonds. The Series 2021 Bonds are not subject to optional or mandatory sinking fund redemption prior to maturity. See the caption “THE SERIES 2021 BONDS – Redemption.” The Series 2021 Bonds are payable from and secured by the Tax Revenues which includes certain tax increment revenues received from the Northwest Redevelopment Project, following payment of senior obligations, which include bonds outstanding as of May 1, 2021 in the amount of $22,460,000, and to the extent additional revenues are needed and are available amounts deposited in the Redevelopment Property Tax Trust Fund on a parity basis to certain bonds outstanding as of May 1, 2021 in the aggregate principal amount of $26,655,000 and certain other ongoing obligations of the Agency, as more fully described under the caption “SECURITY FOR THE SERIES 2021 BONDS – Obligations with Senior Right to Payment.” Taxes levied on the property within the project areas on that portion of the taxable valuation over and above the taxable valuation of the base year property tax roll, will be deposi ted in the Redevelopment Obligation Retirement Fund and administered by the Agency and the Trustee in accordance with the Indenture. [The scheduled payment of principal of and interest on the Series 2021 Bonds, when due will be guaranteed under an insurance policy to be issued concurrently with the delivery of the Series 2021 Bonds by [Insurer Name] (the “2021 Insurer” or “__________”). See the caption “BOND INSURANCE.”] [INSURER LOGO] This cover page of the Preliminary Official Statement contains information for quick reference only. It is not a complete summary of the Series 2021 Bonds. Investors must read the entire Preliminary Official Statement to obtain information essential to the making of an informed investment decision. Attention is hereby directed to certain risk factors more fully described herein. The Series 2021 Bonds are not a debt of the City of San Bernardino, the County of San Bernardino, the State of California, or any of its political subdivisions (except the Agency), and neither said City, said State, nor any of its political subdivisions (except the Agency) is liable hereon, nor in any event shall the Series 2021 Bonds be payable out of any funds or properties other than those of the Agency. The Series 2021 Bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. The principal of and interest on the Series 2021 Bonds are payable solely from the Tax Revenues allocated to the Agency from the Project Areas (all as defined herein and in the Indenture) and other funds as set f orth in the Indenture. The Series 2021 Bonds are offered, when, as and if issued, subject to the approval of Best Best & Krieger LLP, Riverside, California, as Bond Counsel to the Agency and Best Best & Krieger LLP, Riverside, California, as Disclosure Counsel to the Agency and as the City Attorney of the City of San Bernardino, as counsel to the Agency, for Hilltop Securities, Inc. (the “Underwriter”) by its counsel, Kutak Rock LLP, Irvine, California. It is anticipated that the Series 2021 Bonds will be available for delivery through the book-entry facilities of DTC on or about _____, 2021. [UNDERWRITER LOGO] Dated: ____________, 2021  Preliminary, subject to change. This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. 10.c Packet Pg. 98 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series MATURITY SCHEDULE $__________ SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TAX ALLOCATION REFUNDING BONDS, SERIES 2021A (FEDERALLY TAXABLE) Maturity Date (October 1) Principal Amount Interest Rate Yield Price CUSIP†© 2022 $ % % % 2023 2024 2025 2026 2027 2028 2029  Preliminary, subject to change. † CUSIP® is a registered trademark of the American Bankers Association. Copyright© 1999-2021 American Bankers Association. All rights reserved. CUSIP®, data herein is provided by CUSIP Global Services, managed by Standard & Poor’s Financial Services LLC on behalf of the American Bankers Association. This data is not intended to create a database and does not serve in any way as a substitute for CUSIP Global Services. CUSIP® numbers are provided for convenience of reference only. Neither the Agency nor the Underwriter takes any responsibility for the accuracy of such numbers. 10.c Packet Pg. 99 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO San Bernardino, California MEMBERS John Valdivia, Mayor Theodore Sanchez; First Ward Sandra Ibarra; Second Ward, Mayor Pro Tem Juan Figueroa; Third Ward Fred Shorett; Fourth Ward Ben Reynoso; Fifth Ward Kimberly Calvin; Sixth Ward Damon L. Alexander; Seventh Ward STAFF Robert D. Field, City Manager Barbara Whitehorn, Finance Director Genoveva Rocha, City Clerk Sonia R. Carvalho, City Attorney SPECIAL SERVICES Bond Counsel Best Best & Krieger LLP Riverside, California Disclosure Counsel Best Best & Krieger LLP Riverside, California Trustee U.S. Bank, National Association Los Angeles, California Municipal Advisor Columbia Capital Management, LLC Carlsbad, California Fiscal Consultant HdL Coren & Cone Brea, California Verification Agent Causey, Demgen & Moore P.C. Denver, Colorado 10.c Packet Pg. 100 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series MAP 10.c Packet Pg. 101 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series GENERAL INFORMATION ABOUT THIS PRELIMINARY OFFICIAL STATEMENT Preliminary Official Statement Deemed Final. For purposes of compliance with Rule 15c2-12 of the United States Securities and Exchange Commission, as amended (“Rule 15c2-12”), this Preliminary Official Statement constitutes an “official statement” of the Agency with respect to the Bonds that has been deemed “final” by the Agency as of its date except for the omission of no more than the information permitted by Rule 15c2-12. No Offering May Be Made Except by this Preliminary Official Statement. No dealer, broker, salesperson or other person has been authorized by the Agency or the Underwriter to give any information or to make any representations with respect to the Series 2021 Bonds other than as contained in this Preliminary Official Statement, and, if given or made, such other information or representation must not be relied upon as having been given or authorized by the Agency or the Underwriter. Use of Preliminary Official Statement. This Preliminary Official Statement is submitted by the Agency in connection with the sale of the Series 2021 Bonds described in this Preliminary Official Statement and may not be reproduced or used, in whole or in part, for any other purpose. This Preliminary Official Statement does not constitute a contract between any Series 2021 Bond owner and the Agency or the Underwriter. Preparation of this Preliminary Official Statement. The information contained in this Preliminary Official Statement has been obtained from sources that are believed to be reliable, but this information is not guaranteed as to accuracy or completeness. The Underwriter has provided the following sentence for inclusion in this Preliminary Official Statement: The Underwriter has reviewed the information in this Preliminary Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. Estimates and Forecasts. When used in this Preliminary Official Statement and in any continuing disclosure made by the Agency, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “forecast,” “expect,” “intend” and similar expressions identify “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplate d in such forward- looking statements. Any forecast is subject to such uncertainties. Inevitably, some assumptions used to develop the forecasts will not be realized and unanticipated events and circumstances may occur. Therefore, there are likely to be differences between forecasts and act ual results, and those differences may be material. This Preliminary Official Statement speaks only as of its date, and the information and expressions of opinion contained in this Preliminary Official Statement are subject to change without notice. Neither the delivery of this Preliminary Official Statement nor any sale of the Series 2021 Bonds will, under any circumstances, create any implication that there has been no change in the affairs of the Agency or the other parties described in this Preliminary Official Statement, since the date of this Preliminary Official Statement. Document Summaries. All summaries of the Indenture or other documents contained in this Preliminary Official Statement are made subject to the provisions of such documents and do not purport to be complete statements of any or all such provisions. All references in this Preliminary Official Statement to the Indenture and such other documents are qualified in their entirety by reference to such documents, which are on file with the Agency. No Unlawful Offers or Solicitations. This Preliminary Official Statement does not constitute an offer to sell or a solicitation of an offer to buy in any state in which such offer or solicitation is not authorized or in which the person making such offer or s olicitation is not qualified to do so or to any person to whom it is unlawful to make such offer or solicitation. No Registration with the SEC. The issuance and sale of the Series 2021 Bonds have not been registered under the Securities Act of 1933 or the Securities Exchange Act of 1934, both as amended, in reliance upon exemptions provided thereunder by Sections 3(a)(2) and 3(a)(12), respectively, for the issuance and sale of municipal securities. Public Offering Prices. The Underwriter may offer and sell the Series 2021 Bonds to certain dealers and dealer banks and banks acting as agent at prices lower than the public offering prices stated on the inside cover page of this Preliminary Official Statement, and the Underwriter may change such public offering prices from time to time. Website. The City maintains an Internet website, which includes information about the Agency. However, the information maintained on such website is not a part of this Preliminary Official Statement and must not be relied upon in making an investment decision with respect to the Series 2021 Bonds. [Bond Insurer. [Insurer Name] (the “2021 Insurer” or “__________”) makes no representation regarding the Series 2021 Bonds or the advisability of investing in the Series 2021 Bonds. In addition, the 2021 Insurer has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Preliminary Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding the 2021 Insurer supplied by the 2021 Insurer and presented under the heading “BOND INSURANCE” and APPENDIX G – ”SPECIMEN MUNICIPAL BOND INSURANCE POLICY.”] 10.c Packet Pg. 102 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series TABLE OF CONTENTS -i- INTRODUCTORY STATEMENT ............................................... 1 Authority and Purpose ............................................................. 1 The City and the Agency ......................................................... 1 The Redevelopment Plans ....................................................... 2 Tax Allocation Financing ........................................................ 3 Security for the Series 2021 Bonds ......................................... 4 Obligations with Senior Right to Payment .............................. 5 COVID-19 Pandemic .............................................................. 5 Bond Insurance ....................................................................... 6 Reserve Policy ........................................................................ 6 Further Information ................................................................. 6 REFUNDING PLAN ..................................................................... 6 The Refunded Obligations ...................................................... 6 Verification of Mathematical Computations ........................... 7 Sources and Uses of Funds ...................................................... 7 THE SERIES 2021 BONDS .......................................................... 7 Authority for Issuance ............................................................. 7 Description of the Series 2021 Bonds ..................................... 8 Book-Entry System ................................................................. 8 Redemption ............................................................................. 8 Annual Debt Service ............................................................... 9 SECURITY FOR THE SERIES 2021 BONDS ............................. 9 General .................................................................................... 9 Security of Bonds .................................................................. 11 Redevelopment Obligation Retirement Fund; Tax Increment Fund; Deposit of Tax Revenues..................... 11 Deposit of Amounts by Trustee ............................................. 12 Tax Increment Financing ...................................................... 14 Recognized Obligation Payment Schedule ............................ 16 Last and Final Recognized Obligation Payment Schedule ......................................................................... 20 Obligations with Senior Right to Payment ............................ 20 Parity Obligations ................................................................. 23 Subordinate Obligations ........................................................ 24 Limitation on Additional Indebtedness ................................. 24 BOND INSURANCE .................................................................. 26 PROPERTY TAXATION IN CALIFORNIA ............................. 26 Property Tax Collection and Distribution Procedures ...................................................................... 26 Unitary Property .................................................................... 28 Article XIIIA of the State Constitution ................................. 28 Appropriations Limitation — Article XIIIB .......................... 29 Articles XIIIC and XIIID of the State Constitution ............... 30 Proposition 87 ....................................................................... 30 Appeals of Assessed Values .................................................. 30 Proposition 8 ......................................................................... 31 Propositions 218 and 26 ........................................................ 31 Future Initiatives ................................................................... 31 THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ................................. 31 Agency Powers ..................................................................... 32 THE PROJECT AREAS .............................................................. 33 General .................................................................................. 33 Project Area Characteristics .................................................. 36 Levy and Collection .............................................................. 41 Assessment Appeals .............................................................. 43 TAX REVENUES ....................................................................... 44 Projected Tax Revenues ........................................................ 44 Debt Service Coverage .......................................................... 49 RISK FACTORS ......................................................................... 51 Reduction in Taxable Value .................................................. 51 Risks to Real Estate Market .................................................. 51 Reduction in Inflation Rate ................................................... 52 Levy and Collection of Taxes ............................................... 52 State Budget Issues ............................................................... 52 Recognized Obligation Payment Schedule............................ 53 Last and Final Recognized Obligation Payment Schedule ......................................................................... 55 Challenges to Dissolution Act ............................................... 56 Mandatory Redemption on Acceleration of Series 2021 Bonds on Default ................................................... 56 Reduction in Taxable Value .................................................. 57 Risks of Real Estate Secured Investments Generally ............ 57 Reduction in Inflationary Rate and Changes in Legislation ...................................................................... 57 Change in Law ...................................................................... 57 Secondary Market ................................................................. 58 Bankruptcy and Foreclosure ................................................. 58 COVID-19 ............................................................................ 59 Estimated Revenues .............................................................. 60 Hazardous Substances ........................................................... 60 Climate Change ..................................................................... 61 Natural Disasters ................................................................... 61 Cybersecurity ........................................................................ 62 Changes in the Law ............................................................... 62 Investment Risk .................................................................... 62 No Validation Proceeding Undertaken .................................. 62 Bonds Are Limited Obligations ............................................ 63 Bond Insurance ..................................................................... 63 Limitations on Remedies....................................................... 64 TAX MATTERS ......................................................................... 64 Series 2021 Bonds ................................................................. 64 U.S. Holders .......................................................................... 65 Non-U.S ................................................................................ 66 CONTINUING DISCLOSURE ................................................... 68 CONCLUDING INFORMATION .............................................. 68 Underwriting ......................................................................... 68 Legal Opinion ....................................................................... 68 Municipal Advisor ................................................................ 68 Litigation ............................................................................... 69 Ratings .................................................................................. 69 Miscellaneous ....................................................................... 69 APPENDIX A FISCAL CONSULTANT’S REPORT .............. A-1 APPENDIX B SUMMARY OF THE INDENTURE ................. B-1 APPENDIX C FORM OF BOND COUNSEL OPINION .......... C-1 APPENDIX D BOOK-ENTRY ONLY SYSTEM .................... D-1 APPENDIX E STATE DEPARTMENT OF FINANCE LETTER5 ................................................................................... E-1 APPENDIX F FORM OF CONTINUING DISCLOSURE CERTIFICATE .......................................................... F-1 APPENDIX G SPECIMEN MUNICIPAL BOND INSURANCE POLICY ............................................ G-1 10.c Packet Pg. 103 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 1 OFFICIAL STATEMENT $__________ SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TAX ALLOCATION REFUNDING BONDS, SERIES 2021A (FEDERALLY TAXABLE) INTRODUCTORY STATEMENT This Preliminary Official Statement, including the cover page, is provided to furnish information in connection with the sale by the Successor Agency to the Redevelopment Agency of the City of San Ber nardino (the “Agency” or “Successor Agency”) of its $__________* Tax Allocation Refunding Bonds, Series 2021A (Federally Taxable) (the “Series 2021 Bonds”). Authority and Purpose The Series 2021 Bonds are being issued pursuant to the Constitution and laws of the State of California (the “State”), including Article 11 (commencing with Section 53580) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code (the “Bond Law”) and an Indenture of Trust, dated as of __________ 1, 2021 (the “Indenture”), by and between the Agency and U.S. Bank, National Association, as trustee (the “Trustee”). See the caption “THE SERIES 2021 BONDS – Authority for Issuance.” The Series 2021 Bonds are being issued: (i) to refund and defease its outstanding Loan Agreemen t, dated as of December 1, 2010 (the “2010A Loan Agreement”), between the former RDA and the San Bernardino Joint Powers Financing Authority (the “Authority”), which secures the San Bernardino Joint Powers Financing Authority Subordinated Tax Allocation Bonds, Series 2010A (4th Street Corridor Project – Federally Taxable Recovery Zone Economic Development Bonds), originally issued in the amount of $7,065,000 of which $4,250,000 is currently outstanding (the “Series 2010A Authority Bonds”), as described under the caption “REFUNDING PLAN;” (ii) to purchase a bond insurance policy (the “Policy”) and a Municipal Bond Debt Service Reserve Insurance Policy (the “Reserve Policy”) from _________ (the “2021 Insurer”) for deposit in the Reserve Account; and (iii) to pay certain costs of issuance of the Series 2021 Bonds. See the table under the caption “REFUNDING PLAN – Sources and Uses of Funds.” Section 34177.5 of the Dissolution Act (defined under the caption “—The City and the Agency”) authorizes the Successor Agency to issue bonds for limited purposes only, including for the purpose of refunding bonds and other obligations of the Agency for debt service savings and to finance debt service spikes, including balloon maturities. The Series 2021 Bonds are being issued for these purposes. — As permitted by the Dissolution Act, the Series 2021 Bonds are payable from and secured by the Tax Revenues which include tax increment revenues from the Northwest Project Area on a subordinate basis to certain senior obligations, including bonds outstanding as of May 1, 2021 in the aggregate principal amount of $22,460,000, and to the extent additional amounts are needed and are available amounts deposited in the Redevelopment Property Tax Trust Fund (also referred to herein as the “Redevelopment Property Tax Trust Fund” or “RPTTF”) which are on parity with certain other ongoing obligations of the Agency outstanding as of May 1, 2021 in the aggregate principal amount of $26,655,000, as more fully described under the caption “SECURITY FOR THE SERIES 2021 BONDS – Obligations with Senior Right to Payment.” The City and the Agency The Mayor and City Council of the City of San Bernardino (the “City”) acts as the governing body of the Agency and staff of the City provides administrative support for the Agency. The City is located in the  Preliminary, subject to change. 10.c Packet Pg. 104 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 2 County of San Bernardino (the “County”). The City encompasses approximately 59.6 square miles in the San Bernardino foothills and the eastern portion of San Bernardino Valley, approximately 60 miles east of Los Angeles. The City is the county seat of the County. The January 1, 2021 population of the City was estimated by the California Department of Finance to be 216,291. The City was first incorporated in 1857, and operates under and is governed by the laws of the State of California and its own Charter as periodically amended since the original City Charter was adopted by the electorate in 1905. The most recent Charter was passed in 2016. The City of San Bernardino has a full-time, elected Mayor, a City Manager, and seven Councilmembers who are elected in a ward system. The Former Agency was established pursuant to the Community Redevelopment Law (Part 1, Division 24, commencing with Section 33000 of the Health & Safety Code of the State) (the “Redevelopment Law”) and was activated by Resolution No. 2361 adopted by the Mayor and City Council on June 23, 1952, at which time the Mayor and City Council declared itself to be the governing board of the Former Agency. On June 28, 2011, Assembly Bill No. 26 (“AB X1 26”) was enacted as Chapter 5, Statutes of 2011, together with a companion bill, Assembly Bill No. 27 (“AB X1 27”). A lawsuit entitled California Redevelopment Association, et al. v. Matosantos, et al., was brought in the State Supreme Court challenging the constitutionality of AB X1 26 and AB X1 27. In a published decision (53 Cal. 4th 231 (Dec. 29, 2011)), the State Supreme Court largely upheld AB X1 26, invalidated AB X1 27, and held that AB X1 26 may be severed from AB X1 27 and enforced independently. As a result of AB X1 26 and the decision of the State Supreme Court, as of February 1, 2012, all redevelopment agencies in the State, including the Former Agency, were dissolved, and successor agencies were designated as successor entities to the former redevelopment agencies to expeditiously wind down the affairs of the former redevelopment agencies. The primary provisions of AB X1 26 relating to the dissolution and winding down of former redevelopment agency affairs are Parts 1.8 (commencing with Section 34161) and 1.85 (commencing with Section 34170) of Division 24 of the Health & Safety Code of the State, as amended on June 27, 2012 by Assembly Bill No. 1484 (“AB 1484”), enacted as Chapter 26, Statutes of 2012, and as further amended on September 22, 2015 by Senate Bill 107 (“SB 107”), enacted as Chapter 325, Statutes of 2015 (collectively, as amended from time to time, the “Dissolution Act”). On January 9, 2012, pursuant to Resolution No. 2012-12 and Section 34173 of the Dissolution Act, the Mayor and City Council of the City elected to serve as the governing body of the successor agency to the Former Agency. Subdivision (g) of Section 34173 of the Dissolution Act, which was added by AB 1484, expressly affirms that the Agency is a separate public entity from the City, that the two entities shall not merge and that the liabilities of the Former Agency will not be transferred to the City, nor will the assets of the Former Agency become assets of the City. The Redevelopment Plans Tax Revenues are derived from redevelopment project areas of the Former Agency. Redevelopment plans were adopted by the Mayor and City Council for the following fourteen redevelopment project areas (each, a “Project Area” and collectively, the “Project Areas” or the “Combined Project Areas”): 1. Meadowbrook Redevelopment Project (the “Meadowbrook Project”); 2. Central City Project No. 1 (the “Central City Project No. 1”); 3. State College Redevelopment Project (the “State College Project”); 4. Central City North Redevelopment Project (the “Central City North Project”); 5. Central City West Redevelopment Project (the “Central City West Project”); 6. Central City East Redevelopment Project (the “Central City East Project”); 7. Central City South Redevelopment Project (the “Central City South Project”); 8. Southeast Industrial Park Redevelopment Project (the “Southeast Industrial Park Project”); 9. Northwest Redevelopment Project (the “Northwest Project”); 10.c Packet Pg. 105 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 3 10. Tri-City Redevelopment Project (the “Tri-City Project”); 11. South Valle Redevelopment Project (the “South Valle Project”); 12. Uptown Redevelopment Project (the “Uptown Project”); 13. Mt. Vernon Corridor Redevelopment Project (the “Mt. Vernon Corridor Project”); and 14. 40th Street Redevelopment Project (the “40th Street Project”). The above-listed Project Areas constitute all of the Former Agency’s active redevelopment project areas. The Central City Project No. 1, the Meadowbrook Project, the Central City East Project and the Central City South Project were merged together into one redevelopment project for financing purposes; however, each of these Project Areas continued to operate under its own Redevelopment Plan. The Redevelopment Plans for the various Project Areas contain separate time and financial limitations applicable to each of the Project Areas and Component Areas thereof; however, SB 107 amended the Dissolution Act to provide that the time limits for receiving property tax revenues and the limitation on the amount of property tax revenues that may be received by the Former Agency and the Agency set forth in the Redevelopment Plan are not effective for purposes of paying the Agency’s enforceable obligations. Accordingly, the projections set forth in this Preliminary Official Statement and in the Fiscal Consultant’s Report attached to this Preliminary Official Statement as Appendix A do not take into account the time and financial limitations set forth in the Redevelopment Plans for the Project Areas. The Redevelopment Plans and the Project Areas are discussed in more detail under the caption “THE PROJECT AREAS – General.” The Agency covenants and agrees in the Indenture that, subject to the prior application and lien in favor of the Senior Obligations, all Tax Revenues when and as received, will be received by the Agency in trust under the Indenture and will be transferred to the Trustee within a reasonable period of time from the receipt by the Agency thereof, for deposit by the Trustee in the Tax Increment Fund and will be accounted for through and held in trust in the Tax Increment Fund, and the Agency will have no beneficial right or interest in any of such money, except only as specifically provided otherwise in the Indenture. All such Tax Revenues, whether received by the Agency and held in trust pending transfer or deposited with the Trustee, all as herein provided, will nevertheless be disbursed, allocated and applied solely to the uses and purposes set forth in the Indenture, and will be accounted for separately and apart from all other money, funds, accounts or other resources of the Agency. See the caption “SECURITY FOR THE SERIES 2021 BONDS.” Tax Allocation Financing Prior to the enactment of AB X1 26, the Redevelopment Law authorized the financing of redevelopment projects through the use of tax increment revenues. This method provided that the taxable valuation of the property within a redevelopment project area on the property tax roll last equalized prior to the effective date of the ordinance which adopts the redevelopment plan becomes the base year valuation. Assuming that the taxable valuation never drops below the base year level, the taxing agencies thereafter received that portion of the taxes produced by applying then current tax rates to the base year valuation, and the redevelopment agency was allocated the remaining portion produced by applying then current tax rates to the increase in valuation over the base year. Such incremental tax revenues allocated to a redevelopment agency were authorized to be pledged to the payment of agency obligations. Section 34177.5 of the Dissolution Act authorizes the Successor Agency to issue bonds for limited purposes only, including for the purpose of refunding bonds and other obligations of the Agency for debt service savings and to finance debt service spikes, including balloon maturities. The Series 2021 Bonds are being issued for these purposes. Successor Agency bonds issued pursuant to Section 34177.5(a) of the Dissolution Act may be secured by a pledge of moneys deposited from time to time in a Redevelopment Property Tax Trust Fund held by a county auditor-controller with respect to a successor agency, which are equivalent to the tax increment revenues that were formerly allocated under the Redevelopment Law t o the redevelopment agency and formerly authorized under the Redevelopment Law to be used for the financing of redevelopment projects. 10.c Packet Pg. 106 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 4 Under the Indenture, Tax Revenues consist of taxes annually allocated and paid to the Agency pursuant to Article 6 of Chapter 6 (commencing with Section 33670) of the Redevelopment Law, Section 16 of Article XVI of the Constitution of the State and other applicable state laws and as provided in the Redevelopment Plans available for deposit or deposited in the Redevelopment Property Tax Trust Fund, to the extent not payable to Senior Obligations and payable with respect to Pass Through Obligations (defined to include obligations to pay Statutory Pass-Through Amounts and under the Pass-Through Agreements). If, and to the extent, that the provisions of Section 34172 or paragraph (2) of subdivision (a) of Section 34183 of the Dissolution Act are invalidated by a final judicial decision, then Tax Revenues will include all tax revenues allocated to the payment of indebtedness pursuant to California Health and Safety Code Section 33670 or such other section as may be in effect at the time providing for the allocation of tax increment revenues in accordance with Article XVI, Section 16 of the California Constitution. See the caption “SECURITY FOR THE SERIES 2021 BONDS – Tax Increment Financing.” Successor agencies have no power to levy property taxes and must look specifically to the allocation of taxes as described above. See the caption “RISK FACTORS.” Security for the Series 2021 Bonds The Dissolution Act requires the Auditor-Controller of the County of San Bernardino (the “County Auditor-Controller”) to determine the amount of property taxes that would have been allocated to the Former Agency had the Former Agency not been dissolved pursuant to the operation of AB X1 26, using current assessed values on the last equalized roll on August 20, and to deposit such amount in the Redevelopment Property Tax Trust Fund pursuant to the Dissolution Act. Section 34177.5(g) of the Dissolution Act provides that any bonds authorized to be issued by the Agency will be considered indebtedness incurred by the dissolved Former Agency, with the same legal effect as if such bonds had been issued prior to the effective date of AB X1 26, in full conformity with the applicable provisions of the Redevelopment Law that existed prior to that date, and will be included in the Agency’s Recognized Obligation Payment Schedule and shall be secured by a pledge of, and lien on, and shall be repaid from monies deposited from time to time in the Redevelopment Property Tax Trust Fund. See the caption “SECURITY FOR THE SERIES 2021 BONDS – Recognized Obligation Payment Schedule.” The Dissolution Act further provides that bonds authorized to be issued by the Agency will be secured by a pledge of, and lien on, and will be repaid from moneys deposited from time to time in, the Redevelopment Property Tax Trust Fund, and that property tax revenues pledged to any bonds authorized under the Dissolution Act, such as the Series 2021 Bonds, are taxes allocated to the Agency pursuant to the provisions of the Redevelopment Law and the State Constitution which provided for the allocation of tax increment revenues under the Redevelopment Law, as described in the foregoing paragraph. In accordance with the Dissolution Act, the Series 2021 Bonds are payable from and secured by Tax Revenues which includes that portion of taxes annually allocated to the Successor Agency with respect to the Northwest Project following the delivery of the Series 2021 Bonds pursuant to Article 6 of Chapter 6 (commencing with Section 33670) of the Redevelopment Law and Section 16 of Article XVI of the Constitution of the State and as provided in the Redevelopment Plan, exclusive of amounts, if any, (i) that are required to be deposited into the Low and Moderate Income Housing Fund of the Successor Agency in any Fiscal Year pursuant to Sections 33334.2 and 33334.3 of the Redevelopment Law, (ii) required to be paid to entities other than the Successor Agency pursuant to pass-through agreements or similar tax-sharing arrangements entered into in accordance with Section 33607 of the Redevelopment Law, and (iii) required to pay debt service on the Senior Obligations. Additionally, Tax Revenues include funds deposited in the Redevelopment Property Tax Trust Fund pursuant to Section 34177.5(g) of the California Health and Safety Code to the extent that such moneys are available for the payment of debt service on the Series 2021 Bonds and Parity Debt. Pursuant to the Indenture, and except as provided therein, all of the Tax Revenues, including such revenues on deposit in the Redevelopment Obligation Retirement Fund and the Redevelopment Property Tax 10.c Packet Pg. 107 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 5 Trust Fund, and including without limitation any override tax revenues attributable to tax rate overrides levied by taxing agencies within the Northwest Project Area that were pledged to the Refunded Obligations, and all amounts on deposit from time to time in the funds and accounts established thereunder (other than the Expense Account and the Rebate Fund) are irrevocably pledged to secure the payment of the principal of and interest on the Outstanding Bonds and any Parity Debt. The Agency irrevocably grants in the Indenture, to the Trustee for the benefit of the Owners of the Outstanding Bonds, a first charge and lien on, and a security interest in, and pledges and assigns the Tax Revenues, whether held by the Agency, the County Auditor-Controller or the Trustee, and all amounts in the funds and accounts established thereunder (other than the Expense Account and the Rebate Fund), including the “Successor Agency to the Redevelopment Agency of the City of San Bernardino Tax Increment Fund” (the “Tax Increment Fund”), which is created by the Agency pursuant to the Indenture and which fund the Agency covenants and agrees to maintain with the Trustee so long as any Bonds are Outstanding under the Indenture, to the Trustee for the benefit of the Owners of the Outstanding Bonds. Taxes levied on the property within the Project Areas on that portion of the taxable valuation over and above the taxable valuation of the applicable base year property tax roll with respect to the various territories within the Project Areas, to the extent that such taxes constitute Tax Revenues as described in t his Preliminary Official Statement, will be deposited in the Redevelopment Property Tax Trust Fund for transfer by the County Auditor-Controller to the Agency’s Redevelopment Obligation Retirement Fund on January 2 and June 1 of each year (adjusted for holidays and weekends) to the extent required for payments listed in the Agency’s Recognized Obligation Payment Schedule in accordance with the requirements of the Dissolution Act. See the caption “SECURITY FOR THE SERIES 2021 BONDS – Recognized Obligation Payment Schedule.” Moneys deposited by the County Auditor-Controller into the Agency’s Redevelopment Obligation Retirement Fund will be transferred by the Agency to the Trustee for deposit in the Tax Increment Fund established under the Indenture and administered by the Trustee in accordance with the Indenture. The Agency has no power to levy property taxes and must look specifically to the allocation of taxes as described above. Obligations with Senior Right to Payment The use of tax increment revenues from the Northwest Project Area to pay debt service on the Series 2021 Bonds is subject to the prior pledge or priority of payment of certain obligations with a claim on tax increment revenues that is senior to the claim of the Series 2021 Bonds. See the captions “SECURITY FOR THE SERIES 2021 BONDS – Obligations with Senior Right to Payment – Senior Obligations,” “—Prior Agreements,” “—Pass-Through Agreements” and “—Statutory Pass-Through Amounts” for a description of each of these senior obligations. COVID-19 Pandemic The COVID-19 pandemic that has affected the United States and the world during beginning in 2020 has led to efforts to quarantine individuals in order to reduce the spread of the virus. As such, the United States, the State, and the County had each declared a “state of emergency” or equivalent. Additionally, the State issued a “stay at home” order that severely restricted the movement of residents and generally mandated residents to remain in their home and, in effect, prohibited non-essential workers from working outside their home. While these orders were in effect, they caused the disruption of daily life in all jurisdictions, including the closure of, among others, bars, dine-in restaurants, retail stores, schools, gyms, movie theatres, certain government buildings and religious institutions, and general prohibitions on gatherings. During the emergency declarations, City staff are worked from City facilities under limited office hours and with many office workers alternating between working from home and from their City offices. All City staff have now returned to work and are open at this time. The City has asked members of the public who have business to conduct with the City do so over the phone, via email or online if possible. The County of San Bernardino (the “County”) recently moved from the “Red Tier” to the “Orange Tier” under the State of 10.c Packet Pg. 108 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 6 California Department of Public Health’s Tier Framework. Notwithstanding the above, the administration of City affairs has continued with little to no adverse impact. Additionally, the City does not expect the fiscal impact of COVID-19 to have a material impact on the ability of the Successor Agency to timely pay debt service on the Series 2021 Bonds. Bond Insurance [The scheduled payment of principal of and interest on the Series 2021 Bonds when due will be guaranteed under the Policy to be issued concurrently with the delivery of the Series 2021 Bonds by the 2021 Insurer. See the captions “—Authority and Purpose” and “BOND INSURANCE.”] Reserve Policy A Reserve Account for the Series 2021 Bonds is established pursuant to the Indenture in an amount equal to the Reserve Account Requirement of $__________. [The 2021 Insurer has committed to issue, simultaneously with the issuance of the Series 2021 Bonds, the Reserve Policy in the principal amount of the Reserve Account Requirement for deposit in the Reserve Account.] See the caption “SECURITY FOR THE SERIES 2021 BONDS – Deposit of Amounts by Trustee – Reserve Account.” Further Information Brief descriptions of the Series 2021 Bonds, the Indenture, the Agency, the Former Agency and the City are included in this Preliminary Official Statement. Such descriptions and information do not purport to be comprehensive or definitive. All references herein to the Indenture, the Bond Law, the Redevelopment Law, the Dissolution Act, the Constitution and the laws of the State as well as the proceedings of the Former Agency, the Agency and the City are qualified in their entirety by reference to such documents. References herein to the Series 2021 Bonds are qualified in their entirety by the form thereof included in the Indenture and the information with respect thereto included herein. Capitalized terms used herein and not defined have the meanings set forth in Appendix B. REFUNDING PLAN The Refunded Obligations The Agency expects to apply a portion of the proceeds of the Series 2021 Bonds, together with other available funds, to refund the San Bernardino Joint Powers Financing Authority Tax Allocation Bonds Series 2010A and all amounts payable pursuant to the 2010A Loan Agreement, outstanding as of May 1, 2021 in the amount of $4,250,000, which are referred to collectively in this Official Statement as the “Refunded Obligations,” The Refunded Obligations maturing on April 1, 2030 in the principal amount of $4,250,000 (CUSIP No. 796753PW5) will be redeemed on __________, 2021 (the “Redemption Date”). Pursuant to separate irrevocable Refunding Escrow Instructions and Agreements, each dated as of the Closing Date (collectively, the “Escrow Agreements”), by and between the Agency and the respective trustees for the Refunded Obligations (in such capacity, the “Escrow Bank”), the Agency will cause a portion of the proceeds of the Series 2021 Bonds to be delivered to the Escrow Bank for deposit in the applicable escrow funds established under the Escrow Agreements (each, an “Escrow Fund” and collectively, the “Escrow Funds”). Such amounts to be delivered by or on behalf of the Agency to the Escrow Bank on the Closing Date, together with amounts transferred from funds and accounts established in connection with each series of the Refunded Obligations, will be held in cash in amounts sufficient to pay principal and accrued interest and thereby redeem all of the Refunded Obligations on the Redemption Date. The amounts held by the Escrow Bank in each Escrow Fund are pledged solely to the redemption of the applicable outstanding Refunded Obligations. Neither the moneys deposited in the Escrow Funds nor the 10.c Packet Pg. 109 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 7 interest on the invested moneys will be available for the payments of principal of and interest on the Series 2021 Bonds. Verification of Mathematical Computations Sufficiency of the deposits into the Escrow Fund for such purposes will be verified by Causey, Demgen & Moore P.C., Denver, Colorado (the “Verification Agent”). Assuming the accuracy of such computations, as a result of the deposit and application of funds as provided in the Escrow Agreement, the applicable series of Refunded Obligations will be discharged pursuant to the provisions of the indentures and/or loan agreements under which they were issued as of the date of issuance of the Series 2021 Bonds. Upon issuance of the Series 2021 Bonds, the Verification Agent will deliver a report on the mathematical accuracy of certain computations based upon certain information and assertions provided to it by the Underwriter relating to the adequacy of the cash to be deposite d in the respective Escrow Fund to pay the redemption price of the applicable Refunded Obligations. Sources and Uses of Funds The estimated sources and uses of funds are summarized as follows: Total Sources: Principal Amount of Series 2021 Bonds Plus Other Moneys(1) Total Sources Uses: Refunded Obligations Escrow Funds Costs of Issuance Fund(2) Underwriter’s Discount Total Uses _____________________ (1) Reflects moneys held in funds and accounts established in connection with the Refunded Obligations. (2) Includes fees and expenses of Bond Counsel, Disclosure Counsel, Municipal Advisor, Fiscal Consultant, Trustee, Escrow Agent and Verification Agent, printing expenses, rating agency fees, premiums for the Policy and Reserve Policy and other miscellaneous costs. THE SERIES 2021 BONDS Authority for Issuance The Series 2021 Bonds were authorized for issuance pursuant to the Indenture, the Bond Law, and the Dissolution Act. Direction to undertake the issuance of the Series 2021 Bonds and the execution of the related documents was authorized by the Agency pursuant to Resolution No. 2021-56 adopted on March 17, 2021, and by the Oversight Board of the Agency pursuant to Resolution No. 2021-23 adopted on April 5, 2021 (the “Oversight Board Action”). Written notice of the Oversight Board Action was provided to the State Department of Finan ce (the “DOF”). On ___________, 2021, the DOF provided a letter to the Agency stating that based on the DOF’s review and application of the law, the Oversight Board Action approving the Series 2021 Bonds is approved by the DOF. A copy of the DOF’s letter is set forth in Appendix E. 10.c Packet Pg. 110 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 8 Description of the Series 2021 Bonds The Series 2021 Bonds will be issued as fully-registered bonds in minimum denominations of $5,000, or any integral multiple of $5,000 in excess thereof for each maturity, initially in the name of Cede & Co., as nominee of DTC, as registered owner of all Series 2021 Bonds. See the caption “—Book-Entry System.” The Series 2021 Bonds will be dated the Closing Date and mature on October 1 in the years and in the amounts shown on the inside front cover page of this Preliminary Official Statement. Interest on the Series 2021 Bonds will be calculated at the rates shown on the inside cover page of this Preliminary Official Statement, payable semiannually on April 1 and October 1 in each year, commencing on October 1, 2021 (each, an “Interest Payment Date”). Each of the Series 2021 Bonds will bear interest from the Interest Payment Date next preceding the date of authentication thereof, unless such date of authentication is an Interest Payment Date, in wh ich event they will bear interest from such Interest Payment Date, or unless such date of authentication is prior to the first Interest Payment Date, in which event they will bear interest from the Closing Date, provided, however, that if, at the time of authentication of any Series 2021 Bond, interest is then in default on such Series 2021 Bond, such Series 2021 Bond will bear interest from the Interest Payment Date to which interest previously has been paid or made available for payment. Interest on the Series 2021 Bonds will be computed on the basis of a 360-day year of twelve 30-day months. Payment of interest on the Series 2021 Bonds will be made to Cede & Co. as registered owner, or such other person whose name appears on the bond registration books of the Trustee as the registered owner of the Series 2021 Bonds, as of the close of business on the fifteenth (15) day of the calendar month preceding the Interest Payment Date (the “Record Date”), or if otherwise instructed, by check mailed to such registered owner at its address as it appears on such books or at such other address as it may have filed with the Trustee for that purpose prior to the Record Date. Principal and redemption premiums, if any, on the Series 2021 Bonds will be payable in immediately available funds. Principal and redemption premiums, if any, and interest on the Series 2021 Bonds will be paid in lawful money of the United States of America. Book-Entry System DTC will act as securities depository for the Series 2021 Bonds. The Series 2021 Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered certificate will be issued for each maturity of the Series 2021 Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. See Appendix D for further information with respect to DTC and its book -entry system. Redemption The Series 2021 Bonds are not subject to optional or mandatory sinking fund redemption prior to maturity. 10.c Packet Pg. 111 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 9 Annual Debt Service The table below sets forth debt service on the Series 2021 Bonds. Payment Date Principal Interest Total 2022 2023 2024 2025 2026 2027 2028 2029 Total Source: The Underwriter. SECURITY FOR THE SERIES 2021 BONDS General The Dissolution Act requires the County Auditor-Controller to determine the amount of property taxes that would have been allocated to the Former Agency (pursuant to subdivision (b) of Section 16 of Article XVI of the State Constitution) had the Former Agency not been dissolved pursuant to the operation of AB X1 26, using current assessed values on the last equalized roll on August 20, and to deposit such amount in the Redevelopment Property Tax Trust Fund for the Agency established and held by the County Auditor -Controller pursuant to the Dissolution Act. Section 34177.5(g) of the Dissolution Act provides that any bonds authorized thereunder to be issued by the Agency will be considered indebtedness incurred by the dissolved Former Agency, with the same legal effect as if the bonds had been issued prior to the effective date of AB X1 26, in full conformity with the applicable provision of the Redevelopment Law that existed prior to that date, will be included in the Agency’s Recognized Obligation Payment Schedule and will be secured by a pledge of, and lien on, and will be repaid from moneys deposited from time to time in the Redevelopment Property Tax Trust Fund established pursuant to the Dissolution Act. Property tax revenues pledged to any bonds authorized to be issued by the Agency under the Dissolution Act, including the Series 2021 Bonds, are taxes allocated to the Agency pursuant to subdivision (b) of Section 33670 of the Redevelopment Law and Section 16 of Article XV I of the State Constitution. See Appendix B and the caption “—Recognized Obligation Payment Schedule.” Pursuant to Section 33670(b) of the Redevelopment Law and Section 16 of Article XVI of the State Constitution, and as provided in the redevelopment plans for the Project Areas, taxes levied upon taxable property in the Project Areas each year by or for the benefit of the State, any city, county, district, or other public corporation (herein sometimes collectively called “taxing agencies”) after the effective date of the ordinance approving the applicable redevelopment plan, or the respective effective dates of ordinances approving amendments to the redevelopment plan that added territory to the applicable Project Area, as applicable, are to be divided as follows: (a) To Taxing Agencies: That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of the taxing agencies upon the total sum of the assessed value of the taxable property in the applicable Project Area as shown upon the assessment roll used in connection with the taxation of such property by such taxing agency last equalized prior to the effective date of the ordinance adopting the applicable redevelopment plan, or the respective effective dates of ordinances approving amendments thereto that added territory to the applicable Project Area, as applicable (each, a “base year valuation”), will be allocated to, and when collected will be paid into, the funds of the respective taxing agencies as taxes by or for the taxing agencies on all other property are paid; and 10.c Packet Pg. 112 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 10 (b) To the Former Agency/Agency: Except for that portion of the taxes in excess of the amount identified in (a) above which are attributable to a tax rate levied by a taxing agency for the purpose of producing revenues in an amount sufficient to make annual repayments of the principal of, and the interest on, any bonded indebtedness approved by the voters of the taxing agency on or after January 1, 1989 for the acquisition or improvement of real property, which portion shall be allocated to, and when collected shall be paid into, the fund of that taxing agency (as discussed under the caption “PROPERTY TAXATION IN CALIFORNIA – Article XIIIA of the State Constitution”), that portion of the levied taxes each year in excess of such amount, annually allocated within the redevelopment plan limit, when collected will be paid into a special fund of the Former Agency. Section 34172(c) of the Dissolution Act provides that, for purposes of Section 16 of Article XVI of the State Constitution, the Redevelopment Property Tax Trust Fund will be deemed to be a special fund of the Agency to pay the debt service on indebtedness incurred by the Former Agency or the Agency to finance or refinance the redevelopment projects of the Former Agency. That portion of the levied taxes described in paragraph (b) above, less amounts deducted pursuant to Section 34183(a) of the Dissolution Act for permitted administrative costs of the County Auditor -Controller (as discussed under the caption “PROPERTY TAX COLLECTION IN CALIFORNIA – Property Tax Collection and Distribution Procedures – Property Tax Administrative Costs”), constitutes the amount required under the Dissolution Act to be deposited by the County Auditor-Controller into the Redevelopment Property Tax Trust Fund. In addition, Section 34183 of the Dissolution Act effectively eliminates the January 1, 1989 date referred to in paragraph (b) above and provides that debt service override revenues approved by the voters fo r the purpose of supporting pension programs or capital projects or programs related to the State Water Project that are not pledged to or not needed for debt service on Agency debt will be allocated and paid to the entity that levies the override. Debt Service Override Revenue. Various taxing agencies have levied debt service overrides in the Project Areas. Pursuant to several Pass-Through Agreements, the Agency has agreed to pay to certain taxing agencies the incremental override revenues it receives as a result of overrides levied by such taxing agencies. See “—Obligations with Senior Right to Payment – Pass-Through Agreements.” The projections of Tax Revenues set forth herein under the caption “TAX REVENUES – Projected Tax Revenues” and in the Fiscal Consultant’s Report attached as Appendix A are based on the 1% general levy plus approximately ___% of the taxable value within the Project Areas resulting from debt service overrides levied by other taxing agencies, which will be available to the Agency in the event the Agency needs such revenues to pay debt service on the Series 2021 Bonds. Subject to the prior application and lien in favor of the Senior Obligations, Prior Agreements, Pass - Through Agreements and Statutory Pass-Through Amounts (as described under the captions “—Obligations with Senior Right to Payment – Senior Obligations,” “—Prior Agreements,” “—Pass-Through Agreements” and “—Statutory Pass-Through Amounts”), the Series 2021 Bonds are payable from and secured by taxes received from the Northwest Project Area and, to the extent additional money are needed and available deposits into the Redevelopment Property Tax Trust Fund to be derived from the Project Areas payable on parity with the Parity Debt. See the caption “—Security of Bonds.” The Agency has no power to levy and collect taxes, and various factors beyond its control could affect the amount of Tax Revenues available in any fiscal year (defined as July 1 through June 30) to pay the principal of and interest on the Series 2021 Bonds. See the captions “—Tax Increment Financing,” “—Recognized Obligation Payment Schedule,” “PROPERTY TAXATION IN CALIFORNIA” and “RISK FACTORS.” The Series 2021 Bonds are not a debt of the City, the County, the State, or any of its political subdivisions (other than the Agency), and neither said City, said County, said State, nor any of its political subdivisions is liable thereon, nor in any event will the Series 2021 Bonds be payable out of any funds or properties other than those of the Agency. The Series 2021 Bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. 10.c Packet Pg. 113 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 11 Security of Bonds Pursuant to Section 34177.5(g) of the Dissolution Act, except as provided in the Indenture, the Series 2021 Bonds will be equally secured by a pledge of, security interest in and lien on all of the Tax Revenues and the moneys in the Tax Increment Fund, and the Series 2021 Bonds will also be secured by a first and exclusive pledge of, security interest in and lien upon all of the moneys in the Tax Increment Fund, the Interest Account, the Principal Account, the Redemption Account and the Reserve Account (including any subaccounts therein); provided, amounts held in the Reserve Account (or subaccounts therein) will secure only the issue to which such account or subaccount relates to the extent specifically provided for in the Indenture and any Supplemental Indenture, as applicable, without preference or priority for series, issue, number, dated date, sale date, date of execution or date of delivery. Except for the Tax Revenues, which constitute the amounts deposited in the Redevelopment Property Tax Trust Fund that are not pledged to other obligations of the Former Agency or the Agency, and such moneys, no funds or properties of the Agency will be pledged to, or otherwise liable for, the payment of principal of or interest or redemption premium (if any) on the Series 2021 Bonds. As defined in the Indenture, “Tax Revenues” means that portion of taxes annually allocated to the Successor Agency with respect to the Northwest Project Area following the delivery of the Series 2021 Bonds pursuant to Article 6 of Chapter 6 (commencing with Section 33670) of the Redevelopment Law and Section 16 of Article XVI of the Constitution of the State and as provided in the Redevelopment Plan, exclusive of amounts, if any, (i) that are required to be deposited into the Low and Moderate Income Housing Fund of the Successor Agency in any Fiscal Year pursuant to Sections 33334.2 and 33334.3 of the Redevelopment Law, (ii) required to be paid to entities other than the Successor Agency pursuant to pass-through agreements or similar tax-sharing arrangements entered into in accordance with Section 33607 of the Redevelopment Law, and (iii) required to pay debt service on the Senior Obligations. Additionally, Tax Revenues include funds deposited in the Redevelopment Property Tax Trust Fund pursuant to Section 34177.5(g) of the California Health and Safety Code to the extent that such moneys are available for the payment of debt service on the Series 2021 Bonds and Parity Debt. Taxes levied on the property within the Project Areas on that portion of the taxable valuation over and above the taxable valuation of the applicable base year property tax roll with respect to the various territories within the Project Areas, to the extent that they constitute Tax Revenues as described below, will be dep osited in the Redevelopment Property Tax Trust Fund for transfer by the County Auditor -Controller to the Agency’s Redevelopment Obligation Retirement Fund on January 2 and June 1 of each year (adjusted for holidays and weekends) to the extent required for payments listed in the Agency’s approved Recognized Obligation Payment Schedule in accordance with the requirements of the Dissolution Act. See the caption “—Recognized Obligation Payment Schedule.” Moneys deposited by the County Auditor-Controller into the Agency’s Redevelopment Obligation Retirement Fund will be transferred by the Agency to the Trustee for deposit in the Tax Increment Fund established under the Indenture and administered by the Trustee in accordance with the Indenture. See the caption “—Redevelopment Obligation Retirement Fund; Tax Increment Fund; Deposit of Tax Revenues” and Appendix B. Under the Dissolution Act, Tax Revenues derived from one Project Area and deposited in the Redevelopment Property Tax Trust Fund are available to pay debt service on the obligations incurred with respect to other Project Areas of the Agency, after payments have been made on any Senior Obligations secured from Tax Revenues from the applicable Project Area and the Series 2021 Bonds. Redevelopment Obligation Retirement Fund; Tax Increment Fund; Deposit of Tax Revenues The Agency has established the Redevelopment Obligation Retirement Fund pursuant to Section 34170.5(a) of the Dissolution Act. The Indenture establishes a special fund to be held by the Trustee wi thin the Redevelopment Obligation Retirement Fund to be known as the “Tax Increment Fund.” 10.c Packet Pg. 114 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 12 Pursuant to the Indenture, and except as provided therein, all of the Tax Revenues, including such revenues on deposit in the Redevelopment Obligation Retirement Fund and the Redevelopment Property Tax Trust Fund, and including without limitation any override tax revenues attributable to tax rate overrides levied by taxing agencies within the Northwest Project Area that were pledged to the Refunded Obligations, and all amounts on deposit from time to time in the funds and accounts established thereunder (other than the Expense Account and the Rebate Fund) are irrevocably pledged to secure the payment of the principal of and interest on the Outstanding Bonds and any Parity Debt. The Agency irrevocably grants in the Indenture, to the Trustee for the benefit of the Owners of the Outstanding Bonds, a first charge and lien on, and a security interest in, and pledges and assigns in the Indenture, the Tax Revenues, whether held by the Agency, the County Auditor- Controller or the Trustee, and all amounts in the funds and accounts established thereunder (other than the Expense Account and the Rebate Fund), including the Tax Increment Fund, which is created by the Agency pursuant to the Indenture and which fund the Agency covenants and agrees to maintain with the Trustee so long as any Bonds are Outstanding under the Indenture, to the Trustee for the benefit of the Owners of the Outstanding Bonds. The Agency further covenants and agrees in the Indenture that, subject to the prior application and lien in favor of the Senior Obligations of the Northwest Project Area, all Tax Revenues, when and as received, will be received by the Agency in trust under the Indenture and will be deemed to be held by the Agency as agent for the Trustee and will, not later than five (5) Business Days following such receipt, be deposited by the Agency with the Trustee in the Tax Increment Fund and will be accounted for through and held in trust in the Tax Increment Fund, and the Agency will have no beneficial right or interest in any of such money, except only as provided in the Indenture; provided that the Agency will not be obligated to deposit in the Tax Increment Fund in any calendar year an amount which exceeds the amounts required to be transferred to the Trustee for deposited in the Tax Increment Fund pursuant to the Indenture. All such Tax Revenues, whether received by the Agency in trust or deposited with the Trustee, all as provided in the Indenture , will nevertheless be disbursed, allocated and applied solely to the uses and purposes set forth in the Indenture, and will be accounted for separately and apart from all other money, funds, accounts or other resources of the Agency. Deposit of Amounts by Trustee There has been established under the Indenture a trust fund to be known as the Tax Increment Fund, which will be held by the Trustee in trust. Subject to the prior application and lien in favor of the Senior Obligations, all Tax Revenues in the Tax Increment Fund will be set aside by the Trustee in each Bond Year when and as received in the following respective special accounts within the Tax Increment Fund (each of which is created by the Indenture and each of which the Agency covenants and agrees to cause to be maintained with the Trustee so long as the Bonds are Outstanding under the Indenture), in the following order of priority (except with respect to the Expense Account, as described below): Interest Account. The Trustee will set aside from the Tax Increment Fund and deposit in the Interest Account an amount of money which, together with any money contained therein, is equal to the aggregate amount of the interest becoming due and payable on all Outstanding Bonds on the Interest Payment Dates i n such Bond Year. No deposit need be made into the Interest Account if the amount contained therein is at least equal to the aggregate amount of the interest becoming due and payable on all Outstanding Bonds on the Interest Payment Dates in such Bond Year. All moneys in the Interest Account will be used and withdrawn by the Trustee solely for the purpose of paying the interest on the Bonds as it becomes due and payable (including accrued interest on any Bonds purchased or redeemed prior to maturity). Principal Account. The Trustee will set aside from the Tax Increment Fund and deposit in the Principal Account an amount of money which, together with any money contained therein, is equal to the aggregate amount of principal becoming due and payable on all Outstanding Serial Bonds on the Principal Payment Date in such Bond Year. No deposit need be made into the Principal Account if the amount contained therein is at least equal to the aggregate amount of principal of all Outstanding Serial Bonds becoming due and payable on 10.c Packet Pg. 115 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 13 the Principal Payment Date in such Bond Year. All money in the Principal Account will be used and withdrawn by the Trustee solely for the purpose of paying principal of the Serial Bonds as they become due and payable. Reserve Account. The Indenture establishes a separate account known as the “Reserve Account,” to be set aside from the Tax Increment Fund by the Trustee, into which the Trustee will deposit an amount equal to the Reserve Account Requirement (defined below). No deposit need be made into the Reserve Account so long as there is on deposit therein an amount equal to the Reserve Account Requirement. All money in or credited to the Reserve Account will be used and withdrawn by the Trustee solely for the purpose of replenishing the Interest Account or the Principal Account in such order, in the event of any deficiency in any of such accounts occurring on any Interest Payment Date or Principal Payment Date, or for the purpose of paying the interest on or the principal of the Bonds in the event that no other money of the Agency is lawfully available therefor, or for the retirement of all Bonds then Outstanding, except that for so long as the Agency is not in default under the Indenture, any amount in the Reserve Account in excess of the Reserve Account Requirement will be transferred to the Tax Increment Fund. The Reserve Account Requirement for the Series 2021 Bonds will be satisfied by the delivery of the Reserve Policy by the 2021 Insurer to the Trustee on the Closing Date. The Agency will have no obligation to replace the Reserve Policy or to fund the Reserve Account with cash if, at any time that the Series 2021 Bonds are Outstanding, amounts are not available under the Reserve Policy other than in connection with a draw on the Reserve Policy. The Trustee will draw on the Reserve Policy in accordance with its terms and conditions and the terms of the Indenture. The term “Reserve Account Requirement” means $__________, which is equal, as of the date of any calculation, with respect to all Outstanding Bonds an amount equal to the lesser of (i) the maximum annual debt service attributable to the Outstanding Bonds or (ii) 125% of average annual debt service attributable to the Outstanding Bonds; provided however, that the Reserve Account Requirement when issuing a new Series of Bonds will be the lesser of (i) or (ii) above, but limited to the addition to the Reserve Account of no more than 10% of the proceeds from the sale of such new Series of Bonds. The amounts available under the Reserve Policy will be used and withdrawn by the Trustee solely for the purpose of making transfers to the Interest Account and the Principal Account in such order of priority, in the event of any deficiency at any time in any of such accounts or for the retirement of all the Bonds then Outstanding. The Trustee will comply with all documentation relating to the Reserve Policy as required to maintain the Reserve Policy in full force and effect and as required to receive payments thereunder in the event and to the extent required to make any payment when and as required under the Indenture. The Agency has no obligation to replace the Reserve Policy or to fund the Reserve Account with cash if, at any time that the Series 2021 Bonds are Outstanding, amounts are not available under the Reserve Policy. See Appendix B under the captions “TAX REVENUES; CREATION OF FUNDS – Establishment and Maintenance of Accounts for Use of Moneys in the Tax Increment Fund – Reserve Account” and “TAX REVENUES; CREATION OF FUNDS – 2021 Reserve Policy Payment and Reimbursement Provisions” for further information with respect to the procedure for drawing upon the Reserve Policy. Expense Account. The Trustee will set aside from the Tax Increment Fund and deposit in the Expense Account such amount as may be necessary to pay from time to time Compliance Costs as specified in a Written Request of the Agency setting forth the amounts. All moneys in the Expense Account will be applied to the payment of Compliance Costs, upon presentation of a Written Request of the Agency setting forth the amounts, purposes, the names of the payees and a statement that the amounts to be paid are proper charges against the Expense Account. So long as any of the Bonds herein authorized, or any interest thereon, remain unpaid, the moneys in the Expense Account will be used for no purpose other than those required or permitted by the Indenture and the Redevelopment Law. 10.c Packet Pg. 116 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 14 Tax Increment Financing General. Prior to the enactment of AB X1 26, the Redevelopment Law authorized the financing of redevelopment projects through the use of tax increment revenues. This method provided that the taxable valuation of the property within a redevelopment project area on the property tax roll last equalized prior to the effective date of the ordinance which adopts the redevelopment plan becomes the base year valuation. Assuming that the taxable valuation never dropped below the base year level, the taxing agencies thereafter received that portion of the taxes produced by applying then current tax rates to the base year valuation, and the redevelopment agency was allocated the remaining portion produced by applying then current tax rates to the increase in valuation over the base year. Such incremental tax revenues allocated to a redevelopment agency were authorized to be pledged to the payment of agency obligations. The Dissolution Act authorizes refunding bonds, including the Series 2021 Bonds, to be secured by a pledge of moneys deposited from time to time in a Redevelopment Property Tax Trust Fund held by a county auditor-controller with respect to a successor agency, which are equivalent to the tax increment revenues that were formerly allocated under the Redevelopment Law to the redevelopment agency and formerly authorized under the Redevelopment Law to be used for the financing of redevelopment projects, less amounts deducted pursuant to Section 34183(a) of the Dissolution Act for permitted administrative costs of the county auditor - controller. Under the Indenture, Tax Revenues consist of the revenues received from the Northwest Project Area less payments on Senior Obligations, Prior Agreements and Statutory Pass -Through Amounts (as such terms are defined under the caption “—Tax Sharing”) and, to the extent additional revenues are needed and are available amounts deposited from time to time in the Redevelopment Property Tax Trust Fund established pursuant to and as provided in the Dissolution Act on a parity basis with the Parity Debt. Successor agencies have no power to levy property taxes and must look specifically to the allocation of taxes as described above. See the caption “RISK FACTORS.” Prior to the dissolution of redevelopment agencies, tax increment revenues from one project area could not be used to repay indebtedness incurred for another project area. However, the Dissolution Act requires only that county auditor-controllers establish a single Redevelopment Property Tax Trust Fund with respect to each former redevelopment agency within the respective county. Additionally, the Dissolution Act now requires that all revenues equivalent to the amount that would have been allocated as tax increment to the former redevelopment agency will be allocated to the Redevelopment Property Tax Trust Fund of the applicable successor agency, and this requirement does not require funds derived from separate project areas of a former redevelopment agency to be separated. In effect, in situations where a former redevelopment agency had established more than one redevelopment project area (as did the Former Agency), the Dissolution Act combines the property tax revenues derived from all project areas into a single trust fund, the Redevelopment Property Tax Trust Fund, to repay indebtedness of the former redevelopment agency or the successor agency. To the extent that the documents governing outstanding bonds of a redevelopment agency have pledged revenues derived from a specific project area, the Dissolution Act states that “It is the intent ... that pledges of revenues associated with enforceable obligations of the former redevelopment agencies are to be honored. It is intended that the cessation of any redevelopment agency will not affect either the pledge, the legal existence of that pledge, or the stream of revenues available to meet the requirements of the pledge.” The Agency believes that, subject to the prior claim or lien of the Senior Obligations of the Northwest Project Area, the Tax Revenues from the Northwest Project Area and amount in the Redevelopment Property Tax Trust Fund will secure all of the Series 2021 Bonds. Tax Sharing. The Redevelopment Law authorized redevelopment agencies to make payments to school districts and other taxing agencies to alleviate any financial burden or detriments to such taxing agencies caused by a redevelopment project. The Former Agency entered into numerous agreements for this purpose (the “Pass- Through Agreements”). Additionally, Sections 33607.5 and 33607.7 of the Redevelopment Law required mandatory tax sharing applicable to redevelopment projects adopted a fter January 1, 1994, or amended thereafter in certain manners specified in such statutes (such payments and the 33676 Amounts (defined below) are referred to herein and in the Indenture as the “Statutory Pass-Through Amounts”). Further, certain taxing 10.c Packet Pg. 117 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 15 agencies receive payments from the tax revenues generated from the Uptown Project pursuant to Section 33676 of the Redevelopment Law (the “33676 Amounts”). The Dissolution Act requires county auditor-controllers to distribute from the Redevelopment Property T ax Trust Fund amounts required to be distributed under the Pass- Through Agreements and for Statutory Pass-Through Amounts to the taxing entities on each January 2 and June 1 before amounts are distributed by the County Auditor-Controller from the Redevelopment Property Tax Trust Fund to the Agency’s Redevelopment Obligation Retirement Fund, unless: (i) pass-through payment obligations have been made subordinate to debt service payments for the bonded indebtedness of the Former Agency, as succeeded to by the Agency; (ii) the Agency has reported, no later than the October 1 and May 1 preceding the applicable January 2 or June 1 distribution date, that the total amount available to the Agency from the Redevelopment Property Tax Trust Fund allocation to the Agency’s Redevelopment Obligation Retirement Fund, from other funds transferred from the Former Agency and from funds that have or will become available through asset sales and all redevelopment operations is insufficient to fund the Agency’s enforceable obligations, pass-through payments and the Agency’s administrative cost allowance for the applicable ROPS Period; and (iii) the State Controller has concurred with the Agency that there are insufficient funds for such purposes. If the requirements set forth in clauses (i) through (iii) of the foregoing paragraph have been met, the Dissolution Act provides for certain modifications in the distributions otherwise calculated to be distributed on the applicable January 2 or June 1 property tax distribution date (as adjusted for weekends and holidays). To provide for calculated shortages to be paid to the Agency for enforceable obligations, the amount of the deficiency will first be deducted from the residual amount otherwise calculated to be distributed to the taxing entities under the Dissolution Act after payment of the Agency’s enforceable obligations, pass-through payments and the Agency’s administrative cost allowance. If such residual amount is exhausted, the amount of the remaining deficiency will be deducted from amounts available for distribution to the Agency for administrative costs in order to fund the enforceable obligations. Finally, funds required for servicing bond debt may be deducted from the amounts to be distributed under Pass-Through Agreements and for Statutory Pass- Through Amounts, in order to be paid to the Agency for enforceable obligations, but only after the amounts described in the previous two sentences have been exhausted. The Dissolution Act provides for a procedure by which the Agency may make Statutory Pass-Through Amounts subordinate to the Series 2021 Bonds. The Agency has not undertaken the requisite procedures to obtain such subordination of the Statutory Pass -Through Amounts and, therefore, Statutory Pass-Through Amounts are senior to the Series 2021 Bonds. Further, the Pass-Through Agreements have not been subordinated to the Series 2021 Bonds and are therefore senior in priority of payment to the Series 2021 Bonds. See the captions “—Obligations with Senior Right to Payment – Statutory Pass-Through Amounts” and “—Pass-Through Agreements,” the caption “—Recognized Obligation Payment Schedule” and the caption “RISK FACTORS – Recognized Obligation Payment Schedule.” See also the caption “TAX REVENUES – Projected Tax Revenues.” Elimination of Housing Set-Aside. Before the dissolution of the Former Agency, the Redevelopment Law required the Former Agency to set aside not less than 20% of the gross tax increment with respect to the Project Areas, referred to as the “Housing Set-Aside,” in the Low- and Moderate-Income Housing Fund (the “Housing Fund”) to be expended for low and moderate income housing purposes. Generally, the Former Agency was authorized to use the Housing Set-Aside to pay debt service on bonds solely to the extent that the proceeds of such bonds were used to finance or refinance low and moderate income housing projects. The Former Agency could not pledge, and did not use, the Housing Set-Aside to pay debt service on other obligations. In contrast, under the Redevelopment Law, the Former Agency was authorized to use the portion of tax increment that was not part of the Housing Set -Aside (the “80 Percent Portion”) to pay debt service on all bonds and other indebtedness of the Former Agency incurred to finance or refinance redevelopment projects for the Project Areas, subject to limitations set forth in the indentures or other governing documents. The Dissolution Act has eliminated the Housing Fund and the requirement to deposit the Housing Set - Aside into such fund. None of the property tax revenues deposited in the Redevelopment Property Tax Trust Fund are designated as the Housing Set-Aside. The Redevelopment Property Tax Trust Fund flow of funds under the Dissolution Act makes no distinction between bonds that were, in who le or in part, secured by and 10.c Packet Pg. 118 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 16 payable from the Housing Set-Aside and bonds that were solely secured by and payable from the 80 Percent Portion. In effect, after the Former Agency’s dissolution, all of the Agency’s outstanding bonds are paid from Redevelopment Property Tax Trust Fund disbursements without distinction between obligations related to housing and non-housing projects. It is unclear whether, if challenged, a court will find that the elimination of the distinction among bonds that were secured by the Housing Set-Aside and bonds that were secured by the 80 Percent Portion is contrary to the declared intent of the Dissolution Act. It is unclear whether, if challenged, a court will find that the elimination of the distinction among bonds that were secured by the Housing Set-Aside and bonds that were secured by the 80 Percent Portion is contrary to the declared intent of the Dissolution Act. Payments under the 1995 Housing Bonds, which are secured by a pledge and lien on Housing Set-Aside moneys, are payable from the Housing Set-Aside portion of tax increment revenues from the Project Areas on a senior basis to the debt service on the Series 2021 Bonds through the maturity of the 1995 Housing Bonds on July 1, 2025. See the caption “—Obligations with Senior Right to Payment – Prior Agreements.” Recognized Obligation Payment Schedule Before each June 1 property tax distribution date, with respect to each fiscal year, the Dissolution Act requires successor agencies to prepare and approve, and submit to the s uccessor agency’s oversight board and the DOF for approval, a Recognized Obligation Payment Schedule pursuant to which enforceable obligations (as such term is defined in the Dissolution Act) of the successor agency are listed, together with the source of funds to be used to pay for each enforceable obligation. As defined in the Dissolution Act, “enforceable obligation” includes bonds, including the required debt service, reserve set -asides and any other payments required under the indenture or similar documents governing the issuance of the outstanding bonds of the former redevelopment agency, as well as other obligations such as loans, judgments or settlements against the former redevelopment agency, any legally binding and enforceable agreement that is not otherwise void as violating the debt limit or public policy, contracts necessary for the administration or operation of the successor agency, and amounts borrowed from the Housing Fund. The Dissolution Act permits a successor agency to request additional amounts on a Recognized Obligation Payment Schedule to fund a reserve when required by a bond indenture or when the next property tax allocation will be insufficient to pay all enforceable obligations due under the provisions of the bonds for the next payment due in the following half of the calendar year. Under the Dissolution Act, the categories of sources of payments for enforceable obligations listed on a Recognized Obligation Payment Schedule are the following: (i) the Housing Fund; (ii) bond proceeds ; (iii) reserve balances; (iv) administrative cost allowance; (v) the Redevelopment Property Tax Trust Fund (but only to the extent that no other funding source is available or when payment from property tax revenues is required by an enforceable obligation or otherwise required under the Dissolution Act); or (vi) other revenue sources (including rents, concessions, asset sale proceeds, interest earnings, and any other revenues derived from the former redevelopment agency, as approved by its oversight board). The Dissolution Act provides that, commencing on the date that the first Recognized Obligation Payment Schedule is valid, only those payments listed in the Recognized Obligation Payment Schedule may be made by the Agency from the funds specified in the Recognized Obligation Payment Schedule. Each annual Recognized Obligation Payment Schedule may be amended once, provided that (i) the Agency submits the amendment to DOF no later than October 1, (ii) the Oversight Board makes a finding that the amendment i s necessary for the payment of approved enforceable obligations during the second half of the Recognized Obligation Payment Schedule period (from January 1 to June 30, inclusive), and (iii) the Agency may only amend the amount requested for payment of approved enforceable obligations. DOF shall notify the Agency and the County Auditor-Controller as to whether the Agency’s requested amendment is approved at least 15 days before the January 2 property tax distribution. The Recognized Obligation Payment Schedule must be submitted by the Agency, after approval by the Oversight Board, to the County Administrative Officer, the County Auditor-Controller, the DOF and the State 10.c Packet Pg. 119 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 17 Controller by February 1 in each year. If the Agency does not submit an Oversight Board -approved Recognized Obligation Payment Schedule by such deadline, the City will be subject to a civil penalty equal to $10,000 per day for every day that the schedule is not submitted. Additionally, the Agency’s administrative cost allowance will be reduced by 25% for any fiscal year for which the Agency does not submit an Oversight Board-approved Recognized Obligation Payment Schedule within 10 days of the February 1 deadline. If the Agency fails to submit a Recognized Obligation Payment Schedule by the February 1 deadline, any creditor of the successor agency or the department or any affected taxing entity shall have standing to, and may request a writ of mandate to, require the Agency to immediately perform this duty. For additional information regarding pr ocedures under the Dissolution Act relating to late Recognized Obligation Payment Schedules and implications thereof on the Series 2021 Bonds, see the caption “RISK FACTORS – Recognized Obligation Payment Schedule.” With respect to each Recognized Obligation Payment Schedule submitted by the Agency, the Dissolution Act requires the DOF to make a determination of the enforceable obligations and the amounts and funding sources available to pay approved enforceable obligations no later than April 15. Within five business days of the determination by the DOF, the Agency may request additional review by the DOF and an opportunity to meet and confer on disputed items, if any. The DOF will notify the Agency and the County Auditor-Controller as to the outcome of its review at least 15 days before the June 1 property tax distribution date preceding the applicable Recognized Obligation Payment Schedule period. Additionally, the County Auditor-Controller may review a submitted Recognized Obligation Payment Schedule and object to the inclusion of any items that are not demonstrated to be enforceable obligations and may object to the funding source proposed for any items, provided that the County Auditor-Controller must provide notice of any such objections to the Agency, the Oversight Board and the DOF at least 60 days prior to the next June 1 property tax distribution date. See the caption “—Last and Final Recognized Obligation Payment Schedule” for a description of the Last and Final Recognized Obligation Payment Schedule authorized by the Dissolution Act pursuant to SB 107. In connection with the allocation and distribution by the County Auditor-Controller of property tax revenues deposited in the Redevelopment Property Tax Trust Fund, under the Dissolution Act the County Auditor-Controller must prepare estimates of the amounts of: (i) property tax to be allocated and distributed; and (ii) the amounts of pass-through payments to be made for the upcoming fiscal year, and provide thos e estimates to the entities receiving the distributions and DOF by no later than October 1 and April 1 of each year, as applicable. If, after receiving such estimate from the County Auditor -Controller, the Agency determines and reports, no later than October 1 or April 1, as applicable, that the total amount available to the Agency from the Redevelopment Property Tax Trust Fund allocation to the Agency’s Redevelopment Obligation Retirement Fund, from other funds transferred from the Former Agency and from funds that have or will become available through asset sales and all redevelopment operations, is insufficient to fund the payment of pass -through obligations, Agency enforceable obligations listed on the Recognized Obligation Payment Schedule and the Agency’s administrative cost allowance, the County Auditor-Controller must notify the State Controller and the DOF by no later than 10 days from the date of the Agency’s notification. If the State Controller concurs that there are insufficient funds to pay required debt service, and if the Agency’s tax sharing obligations described in Section 38183(a)(1) of the Dissolution Act have been subordinated to the Agency’s enforceable obligations, then the Dissolution Act provides for certain adjustments to be made to the estimated distributions, as described in more detail under the caption “—Tax Increment Financing.” The Dissolution Act provides that any bonds authorized to be issued by the Agency will be considered indebtedness incurred by the dissolved Former Agency, with the same legal effect as if such bonds had been issued prior to the effective date of AB X1 26, in full conformity with the applicable provision of the Redevelopment Law that existed prior to such date, will be included in the Agency’s Recognized Obligation Payment Schedule and will be secured by a pledge of, and lien on, and will be repaid from moneys deposited from time to time in the Redevelopment Property Tax Trust Fund established pursuant to the Dissolution Act. Additionally, if an enforceable obligation provides for an irrevocable commitment of property tax revenue and where allocation of revenues is expected to occur over time, the Dissolution Act provides that a successor 10.c Packet Pg. 120 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 18 agency may petition the DOF to provide written confirmation that its determination of such enforceable obligation as approved in a Recognized Obligation Payment Schedule is final and conclusive, and reflects the DOF’s approval of subsequent payments made pursuant to the enforceable obligation. If the confirmation is granted by the DOF, then the DOF’s review of such payments in each future Recognized Obligation Payment Schedule will be limited to confirming that they are required by the prior enforceable obligation. However, the Agency has covenanted to take all actions required under the Dissolution Act to include on its ROPS the amounts described below to be transmitted to the Trustee for the applicable ROPS Period in order to satisfy the requirements of the Indenture, including any amounts required to pay principal and interest payments due on the Senior Obligations, Outstanding Bonds and any Parity Debt, any Compliance Costs, any deficiency in the Reserve Account to the full amount of the Reserve Account Requirement and any deficiency in the reserve accounts under the indentures for the Senior Obligations. The Agency shall submit an Oversight Board-approved ROPS to the County Auditor-Controller and the Department of Finance (with a copy to the Agency) on or before each February 1 with respect to the ROPS Period commencing the f ollowing July 1. Further, the Agency covenants to include expected Compliance Costs, if any, in each ROPS in accordance with the Dissolution Act. The Agency covenants in the Indenture that, in preparing a given ROPS, the Agency shall reflect on each annual ROPS that the amount due to the Trustee from the Agency, received in trust from the County Auditor-Controller, for deposit in the Tax Increment Fund on June 1 (commencing June 1, 2022) of the then- current calendar year from Tax Revenues required to be deposited into the Redevelopment Property Tax Trust Fund shall equal (1) the sum of (a) all scheduled principal payments and Sinking Account Installments due and payable on the Outstanding Bonds and any Parity Debt during the next succeeding Fiscal Year as sh own in the Indenture, and (b) all scheduled interest payments due and payable on the Outstanding Bonds and any Parity Debt during the next succeeding Fiscal Year as shown in the Indenture, plus (2) the amount of any deficiency in the Reserve Account, less (3) the amounts, if any, on deposit in the Tax Increment Fund as of the date of submission for the ROPS pursuant to the Indenture that are in excess of the amounts required to be applied to payment of principal of or interest or sinking account payments on the Outstanding Bonds and any Parity Debt in the then current Fiscal Year. The amount due to the Trustee from the Agency, received in trust from the County Auditor-Controller, for deposit in the Tax Increment Fund on January 2 of the next calendar year fr om amounts required to be deposited into the Redevelopment Property Tax Trust Fund shall be equal to the remainder, if any, due and payable on the Outstanding Bonds and any Parity Debt during such next succeeding Fiscal Year in an amount equal to not less than (1) the remaining sum of (a) all scheduled principal payments and Sinking Account Installments due and payable on the Outstanding Bonds and any Parity Debt during such next succeeding Fiscal Year as shown in the Indenture, and (b) all scheduled interest payments due and payable on the Outstanding Bonds and any Parity Debt during such next succeeding Fiscal Year as shown in the Indenture, plus (2) the amount of any remaining deficiency in the Reserve Account. 10.c Packet Pg. 121 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 19 The estimated cash flow for the Northwest Project Area under the Recognized Obligation Payment Schedules covering the June 1, 2017 through January 2, 2021 Redevelopment Property Tax Trust Fund distribution dates is set forth below. The following table includes debt service payable on the Refunded Obligations. TABLE 1 A SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE COUNTY OF SAN BERNARDINO NORTHWEST PROJECT AREA (PROJECT AREA TAX REVENUES) HISTORIC REDEVELOPMENT PROPERTY TAX TRUST FUND CASH FLOW (Fiscal Years 2016-17 through 2020-21) FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 ROPS Cycle: 16-17B 17-18A 17-18B 18-19A 18-19B 19-20A 19-20B 20-21A Collection Deposits $ 4,494,704 $3,154,336 $ 4,198,928 $ 3,963,761 $ 5,339,752 $ 3,410,472 $ 6,229,404 $ 3,373,068 County Admin. (10,580) (106,107) (9,969) (77,879) (47,360) (27,208) (38,093) (58,288) Pass Through Pmts. (1,148,042) (948,659) (1,224,348) (1,192,027) (1,526,413) (1,227,459) (1,815,446) (1,360,207) Remaining Revenue $ 3,336,081 $2,099,570 $ 2,964,611 $ 2,693,855 $ 3,765,979 $ 2,155,806 $ 4,375,865 $ 1,954,574 _______________________ Source: HdL Coren & Cone. TABLE 1B SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE COUNTY OF SAN BERNARDINO COMBINED PROJECT AREAS (RPTTF DEPOSITS) HISTORIC REDEVELOPMENT PROPERTY TAX TRUST FUND CASH FLOW (Fiscal Years 2016-17 through 2020-21) FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 ROPS Cycle: 16-17B 17-18A 17-18B 18-19A 18-19B 19-20A 19-20B 20-21A Collection Deposits $23,862,613 $18,339,972 $23,988,691 $19,580,921 $26,088,475 $19,390,443 $30,637,016 $20,167,056 County Admin. (97,923) (436,856) (100,124) (229,605) (197,863) (106,973) (440,061) (102,481) Pass Through Pmts. (3,148,949) (2,807,302) (3,426,220) (3,223,427) (3,788,489) (3,585,608) (5,097,939) (4,207,933) Remaining Revenue $20,615,741 $15,095,814 $20,462,347 $16,127,889 $22,102,123 $15,697,862 $25,099,016 $15,856,642 _______________________ Source: HdL Coren & Cone. 10.c Packet Pg. 122 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency 20 Last and Final Recognized Obligation Payment Schedule Pursuant to SB 107, commencing on February 1, 2016, successor agencies were transitioned to an annual ROPS process pursuant to which successor agencies will be required to file ROPS with the DOF and the County Auditor-Controller for approval each February 1 for the July 1 through June 30 period immediately following such February 1 commencing with the July 1, 2016 through June 30, 2017 period. Commencing September 22, 2015, successor agencies which received a Finding of Completion and the concurrence of the DOF as to the items that qualify for payment, among other conditions, may at their option, file a “Last and Final” Recognized Obligation Payment Schedule (the “Last and Final ROPS”). If approved by the DOF, the Last and Final ROPS will be binding on all parties, and the Successor Agency will no longer submit a ROPS to the DOF or the Oversight Board. The County Auditor-Controller will remit the authorized funds to the Successor Agency in accordance with the approved Last and Final ROPS until each remaining enforceable obligation has been fully paid. A Last and Final ROPS may only be amended twice, and only with approval of the DOF and the County Auditor-Controller. The unspent proceeds of the Refunded Obligations will be used, together with the proceeds of the Series 2021 Bonds, to fund the defeasance of the Refunded Obligations. The Successor Agency has not yet submitted a Last and Final ROPS, however, it expects to submit a Last and Final ROPS in the near future. As defined in the Dissolution Act, “enforceable obligation” includes bonds, including the required debt service, reserve set-asides, and any other payments required under an indenture or similar documents governing the issuance of the outstanding bonds of the former redevelopment agency, as well as other obligations such as loans, judgments or settlements against the former redevelopment agency, any legally b inding and enforceable agreement that is not otherwise void as violating the debt limit or public policy, contracts necessary for the administration or operation of the successor agency, and, under certain circumstances, amounts borrowed from the successor agency’s low and moderate income housing fund. A reserve may be included on the ROPS and held by the Successor Agency when required by a bond indenture or when the next property tax allocation will be insufficient to pay all obligations due under the provisions of the bonds for the next payment due in the following six-month period as provided in the Dissolution Act. Obligations with Senior Right to Payment Senior Obligations. The Agency may not issue additional bonds or incur additional obligations that are payable from moneys derived from the Northwest Project Area or from moneys deposited in the Redevelopment Property Tax Trust Fund on a senior basis to the Series 2021 Bonds, except for the purpose of refunding the Agency’s obligations pledged to payment of debt service on the Senior Obligations (defined below). The Agency’s pledge of moneys deposited in the Redevelopment Property Tax Trust Fund to payment on the Series 2021 Bonds is subordinate to its prior pledge of or claim on certain tax revenues to pay debt service, make pass- through payments or make certain other payments pursuant to the Senior Obligations listed below, as well as the Prior Agreements, the Pass-Through Agreements and the Statutory Pass-Through Amounts. The following obligations (the “Senior Obligations”) are payable from moneys derived from the Northwest Project Area on a senior basis to the Series 2021 Bonds, as described below. Each Senior Obligation has a prior claim on Redevelopment Property Tax Trust Fund moneys derived from the Northwest Project Area for which such bonds were issued, but not the Agency’s other Project Areas. The Senior Obligations outstanding as of May 1, 2021 in the cumulative amount of $22,460,000. The Senior Obligations and Prior Agreements are summarized in tabular form under the caption “—Prior Agreements,” below. 1. 1995 Housing Bonds. The Former Agency entered into two Standby Loan Agreements in connection with the issuance of the Former Agency’s Multifamily Housing Revenue Bonds (Highland Lutheran Senior Housing Project) 1995 Series and the Former Agency’s Multifamily Housing Revenue Bonds (Ramona 10.c Packet Pg. 123 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 21 Senior Complex Project) 1995 Series (together, the “1995 Housing Bonds”), pursuant to which the Former Agency pledged its Housing Set-Aside moneys to pay the principal, premium, if any, and interest on the 1995 Housing Bonds, to the extent revenues of the housing projects funded with the proceeds of the 1995 Housing Bonds is insufficient to pay such debt service payments. The Agency consistently pays a portion of the debt service on the 1995 Housing Bonds from Redevelopment Property Tax Trust Fund moneys pursuant to approved Recognized Obligation Payment Schedules. The outstanding principal balance of the 1995 Housing Bonds as of May 1, 2021 is approximately $1,150,000, with a final maturity of July 1, 2025. 2. 1999 Refunding Certificates of Participation. Reimbursement Agreement dated September 29, 1999, between the Former Agency and the City, which secures the portion of the San Bernardino Joint Powers Financing Authority 1999 Refunding Certificates of Participation (Police Station, South Valle Refundings and 201 Building Project) (the “1999 COPs”) relating to the South Valle Refundings and 201 Building, originally issued in the total amount of $15,480,000 of which $8,750,000 pertained only to the South Valle Refundings and 201 Building portion and for which the balance outstanding as of May 1, 2021 pertaining only to the South Valle Refundings and 201 Building portion equals $2,255,000 and has a final maturity of July 1, 2024 (the Reimbursement Agreement relating to the South Valle Refundings and 201 Building Portion of the 1999 COPs is referred to herein as the “1999 Reimbursement Agreement”). 3. Tax Allocation Revenue Refunding Bonds, Series 2005A. Seven Loan Agreements, each dated as of September 1, 2005 (the “2005 Senior Loan Agreements”), between the Agency and the Authority, which secure the San Bernardino Joint Powers Financing Authority Tax Allocation Revenue Refunding Bonds, Series 2005A, originally issued in the amount of $55,800,000 of which $12,560,000 outstanding as of May 1, 2021 (the “Series 2005A Authority Bonds”), which 2005 Senior Loan Agreement is secured by tax increment revenues generated by the following Project Areas: the Central City North Project, the State College Project, the Southeast Industrial Park Project, the Northwest Project, the South Valle Project, the Uptown Project and the Tri-City Project and has a final maturity of October 1, 2025. Prior Agreements. The Agency’s obligations pursuant to the agreements described below (the “Prior Agreements”) are payable from Tax Revenues on a senior basis to the Bonds. Projections of Tax Revenues set forth in this Preliminary Official Statement reflect payments projected to become due under the Prior Agreements, as noted below and in Tables 7A and 7B under the caption “TAX REVENUES – Projected Tax Revenues.” The Prior Agreements each contain a pledge of certain tax revenues with respect to specified real property in specified Project Areas, but not with respect to taxes generated by other real property in the Project Areas. The Senior Obligations and Prior Agreements are summarized in tabular form, below. 10.c Packet Pg. 124 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 22 Pass-Through Agreements. The Agency’s obligations pursuant to the following Pass-Through Agreements are payable from moneys deposited in the Redevelopment Property Tax Trust Fund and have not been expressly subordinated to the Bonds; therefore the payments under these Pass-Through Agreements are excluded from the definition of “Tax Revenues” in the Indenture and are deducted from the projections of Tax Revenues set forth in this Preliminary Official Statement and the Fiscal Consultant’s Report attached as Appendix A. The following table summarizes the provisions of each of the Agency’s Pass-Through Agreements. Project Area Taxing Entity Pass Through Provisions Northwest County and County Flood Control 100% pass through of County’s share and District’s share of annual tax increment Northwest San Bernardino Community College District One-time payment satisfied Tri-City Colton Joint Unified School District 90% of District’s share of inflationary tax increment and any District overrides Tri-City Redlands Unified School District 90% of District’s share of inflationary tax increment and any District overrides Tri-City San Bernardino Valley Muni Water District $35,000 annual payment to District, adjusted by Assessor’s inflation factor each year (less amounts payable to District from South Valle project revenues) Tri-City San Bernardino Unified School District Payments satisfied Tri-City San Bernardino Community College District One-time payment satisfied South Valle San Bernardino Valley Muni Water District $35,000 annual payment to District, adjusted by Assessor’s inflation factor each year (less amounts payable to District from Tri-City project revenues) South Valle Colton Joint Unified School District No payments currently due, or expected South Valle San Bernardino Community College District One-time payment satisfied Uptown San Bernardino Community College District One-time payment satisfied Mt. Vernon County and County Flood Control To District: District’s tax overrides and 80% of District’s share of annual tax increment To County: 35% of 80% of County’s share of annual tax increment for annual growth over the preceding year up to 7.5%; 65% of 80% of the County’s share of annual T.I generated by annual growth over the preceding year exceeding 7.5% Mt. Vernon Rialto Unified School District The Former Agency entered into agreements with the Rialto Unified School District (6.41%), the San Bernardino City Unified School District (28.3%), the Colton Joint Unified School District (.027%) and the San Bernardino Community College District (5.14%) that have identical terms. Each district’s shares noted above are the portions of the Project Area tax revenue that is attributable to those districts. These shares are affected by the amount of incremental value in the Project Area that is attributable to each district. Each district receives its share of general levy tax revenue derived from inflationary growth on base year real property value as calculated per Health and Safety Code Section 33676(a)(2). In addition to these base year adjustment revenues, the districts receive a portion of 80% of their share of total Project Area general levy tax increment revenue less the base year adjustment revenues they receive. Under the agreement, from now through the termination of the Project Area revenues the portion of this 80% amount received by the districts is 15%. Mt. Vernon San Bernardino Community College District Mt. Vernon San Bernardino Unified School District Mt. Vernon Colton Joint Unified School Dist. Mt. Vernon County Superintendent of Schools District’s share of inflationary tax increment, and any District overrides, plus 40% of 80% of District’s share of annual tax increment less the amount received as its share of inflationary revenues Mt. Vernon San Bernardino Valley Muni Water District 100% pass through of District’s tax override tax increment Statutory Pass-Through Amounts. The Agency is obligated to make certain tax sharing payments to taxing agencies as described below under the subheadings “—AB 1290 Statutory Pass-Through,” “—SB 211 Triggered Statutory Pass-Through” and “-33676 Amounts.” These payment obligations are referred to collectively in this Preliminary Official Statement as the “Statutory Pass-Through Amounts.” AB 1290 Statutory Pass-Through. Redevelopment plans that were adopted on or after January 1, 1994 were subject to the statutory pass-through requirements of Assembly Bill (“AB”) 1290 which provided for payments to taxing agencies calculated pursuant to specific statutory formulas, set forth in Health and Safety Code Section 33607.5. Because it was adopted in 2000, the 40th Street Project is subject to the S tatutory Pass- Through Amounts, which are calculated as follows: 10.c Packet Pg. 125 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 23 Section 33607.5 describes the statutory pass through formula in three “tiers” of payment, described as follows: (Tier 1) commencing from the first fiscal year in which the agency receives tax increments, 25% of the tax increments received are passed-through to the entities (net of 20% of the amount for Housing. Set Aside); (Tier 2) commencing in the 11th year in which the agency receives tax increments, an additional 21% of the portion of tax increment received, which is calculated by applying the tax rate against the amount of assessed value by which the current year assessed value exceeds the first adjusted base year assessed value (i.e. the value of the project area in the 10`11 year in which tax increment is received) and net of 20% for Housing Set Aside; and (Tier 3) commencing in the 3lst year in which the agency receives tax increments, an additional 14% of the portion of tax increment received, which is calculated by applying the tax rate against the amount of assessed value by which the current year assessed value exceeds the second adjusted base year assessed value (i.e. the value of the project area in the 30th year in which tax increment is received) and net of 20% for Housing Set Aside. SB 211 Triggered Statutory Pass-Through. A statutory pass through obligation could also be triggered by amendments to pre-AB 1290 redevelopment plans to increase the tax increment revenue limit, extend the time for the incurrence of debt or to extend the duration of the redevelopment plan. This provision applied when SB 211 was adopted by the State Legislature, enabling the Former Agency to adopt a summary ordinance electing to eliminate the debt incurrence time limitations for qualifying Redevelopment Plans adopted before January 1, 1994. SB 211 Statutory Pass-Through Payments were triggered for all of the Project Areas other than the 40th Street Project. If a Pass-Through Agreement was already entered into prior to January 1, 1994, then the payments required by that agreement remain in effect. If no Pass -Through Agreement existed with an affected taxing entity, then the provisions under Health and Safety Code Sections 33607.5 and 33607.7 apply and require statutory pass-through payments to these entities. The calculation described above under the caption “—AB 1290 Statutory Pass-Through” applies, adjusted to use the year in which the amended plan limit would have been reached as the adjusted base year, with payments starting the following year. These tax sharing payments continue for the life of the applicable Project Area. Because the Agency has not requested any subordination, the Fiscal Consultant has deducted the projected Statutory Pass -Through Amounts in connection with its calculation of Tax Revenues (see the Fiscal Consultant’s Report attached hereto as Appendix A and the projections of Tax Revenues set forth in Tables 7 and 8). 33676 Amounts. Prior to the enactment of AB 1290, redevelopment project areas adopted between January 1, 1985 and January 1, 1994 were subject to payments to schools and to other affected taxing agencies that elected to receive tax revenue payments set forth under Section 33676 of the Redevelopment Law (“33676 Amounts”). The annual payments represent that portion of property taxes that are, or otherwise would be, calculated annually pursuant to subdivision (f) of Section 110.1 of the Revenue and Taxation Code (and referred to as the 2% inflation allocation). As with Statutory Pass-Through Amounts, the County Auditor-Controller administers the payment of 33676 Amounts and such 33676 Amounts are deducted from the tax revenues included in the definition of Tax Revenues under the Indenture. The Uptown Project is subject to the two percent inflation allocation to qualifying affected taxing entities. The full estimated future Statutory Pass-Through Amounts calculated by the Fiscal Consultant are deducted from the Tax Revenues projections set forth in Tables 7A and 7B, under the heading “TAX REVENUES – Projected Tax Revenues.” See Appendix A. For purposes of the projections of Tax Revenues in this Preliminary Official Statement, Statutory Pass-Through Amounts are calculated as described above. Parity Obligations The San Bernardino Joint Powers Financing Authority Tax Allocation Revenue Refunding Bonds, Series 2005B, originally issued in the amount of $21,105,000 of which $4,415,000 will be outstanding as of 10.c Packet Pg. 126 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 24 May 1, 2021 (the “Series 2005B Authority Bonds”) with a final maturity of October 1, 2025 are payable on a parity basis with the Series 2021 Bonds. Subordinate Obligations The following obligations (the “Subordinate Obligations”) are payable from tax increment received from the Northwest Project Area on a subordinate basis to the Series 2021 Bonds, as described below. The Agency previously issued its $27,850,000 Tax Allocation Refunding Bonds, Series 2016A (Tax-Exempt) (the “Series 2016A Bonds”), which is currently outstanding in the amount of $15,740,000, and its $16,030,000 Tax Allocation Refunding Bonds, Series 2021B (Federally Taxable) (the “Series 2016B Bonds” and, together with the Series 2016A Bonds, the “Series 2016 Bonds”), which is currently outstanding in the amount of $6,500,000. The Series 2016A Bonds mature on December 1, 2031 and the Series 2016B Bonds mature on December 1, 2027. However, the Series 2016 Bonds are payable on parity with the Series 2021 Bonds with respect to the Redevelopment Property Tax Trust Fund. Limitation on Additional Indebtedness Future Refunding of Senior Obligations. The Indenture permits the Agency to issue bonds secured by Tax Revenues or any part thereof, on a senior basis to the Bonds and Additional Bonds to refund Senior Obligations, to the extent such refunding would be permitted by Section 34177.5(a) of the Dissolution Act. The Senior Obligations include the 1995 Housing Bonds, the 1999 Certificates of Participation and the Series 2005A Authority Bonds, which all mature in Fiscal Year 2024-25. Parity Obligations. The Agency may issue tax allocation bonds pursuant to the Indenture (collectively, “Additional Bonds”) payable from Tax Revenues and secured by a lien and charge upon the Tax Revenues equal to and on a parity with the lien and charge securing the Outstanding Bonds theretofore issued under the Indenture, for the purpose of refunding bonds or other indebtedness of the Agency or the Former Agency (including, without limitation, refunding Bonds outstanding under the Indenture) in accordance with the Redevelopment Law, including payment of all costs incidental to or connected with such refunding and funding or providing for the funding of related reserves, but only subject to the following specific conditions, which are conditions precedent to the issuance of any such Additional Bonds under the Indenture: (a) A Written Request of the Agency will have been filed with the Trustee containing a statement to the effect that the Agency will be in compliance with all covenants set forth in the Indenture and any Supplemental Indentures, and no event of default will have occurred and be continuing. (b) The issuance of such Additional Bonds will have been duly authorized pursuant to the Redevelopment Law and all applicable laws, and the issuance of such Additional Bonds will have been provided for by a Supplemental Indenture; which specifies the following: (i) The authorized principal amount of such Additional Bonds; (ii) The date and the maturity date or dates of such Additional Bonds; provided that (i) Principal Payment Dates and Sinking Account Payment Dates may occur only on Interest Payment Dates, and (ii) fixed serial maturities or mandatory Sinking Account Installments, or any combination thereof, will be established to provide for the retirement of all such Additional Bonds on or before their respective maturity dates; (iii) The Interest Payment Dates for such Additional Bonds; provided that Interest Payment Dates will be on the same semiannual dates as the Interest Payment Dates for Series 2021 Bonds; (iv) The denomination and method of numbering of such Additional Bonds; 10.c Packet Pg. 127 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 25 (v) The redemption premiums, if any, and the redemption terms, if any, for such Additional Bonds; (vi) The amount and due date of each mandatory Sinking Account Installment, if any, for such Additional Bonds; (vii) The amount, if any, to be deposited from the proceeds of such Additional Bonds in the Reserve Account; provided that the amount deposited in or credited to such Reserve Account will be increased at or prior to the time such Additional Bonds become Outstanding to an amount at least equal to the Reserve Account Requirement on all then Outstanding Bonds and such Additional Bonds, and that an amount at least equal to the Reserve Account Requirement on all Outstanding Bonds will thereafter be maintained in or credited to such Reserve Account; (viii) The form of such Additional Bonds; and (ix) Such other provisions, as are necessary or appropriate and not inconsistent with the Indenture. (c) Such Additional Bonds may be issued only for the purpose of refunding bonds or other indebtedness of the Agency or its Former Agency (including, without limitation, refunding Bonds outstanding under the Indenture) in accordance with Section 34177.5 of the Dissolution Act, including payment of all costs incidental to or connected with such refunding and funding or providing for the fundin g of related reserves, and the payment of all costs incidental to or connected with such refunding, provided that the issuance of such Additional Bonds will comply with the terms of California Health and Safety Code Section 34177.5. Prior to issuance by the Agency of such Additional Bonds, the Trustee must receive the following documents or money or securities: (a) A certified copy of the Supplemental Indenture authorizing the issuance of such Additional Bonds; (b) A Written Request of the Agency as to the authentication and delivery of such Additional Bonds; (c) An opinion of Bond Counsel to the effect that (1) the Agency has the right and power under the Redevelopment Law to enter into the Indenture and all Supplemental Indentures thereto, and the Indentur e and all such Supplemental Indentures have been duly executed by the Agency and are valid and binding upon the Agency and enforceable in accordance with their terms (except as enforcement may be limited by bankruptcy, insolvency, reorganization and other similar laws relating to the enforcement of creditors’ rights, by application of equitable principles and by exercise of judicial discretion in appropriate cases), and no other authorization for the Indenture or such Supplemental Indentures is required; (2) the Indenture creates the valid pledge which it purports to create of the Tax Revenues as provided in the Indenture, subject to the application thereof to the purposes and on the conditions permitted by the Indenture; and (3) such Additional Bonds are va lid and binding special obligations of the Agency, enforceable in accordance with their terms (except as enforcement may be limited by bankruptcy, insolvency, reorganization and other similar laws relating to the enforcement of creditors’ rights, by application of equitable principles and by exercise of judicial discretion in appropriate cases) and the terms of the Indenture and all Supplemental Indentures thereto and entitled to the benefits of the Indenture and all such Supplemental Indentures and the Redevelopment Law, and such Additional Bonds have been duly and validly authorized and issued in accordance with the Redevelopment Law and the Indenture and all such Supplemental Indentures; (d) A Written Request of the Agency containing such statements as may be reasonably necessary to show compliance with the requirements of the Indenture; and 10.c Packet Pg. 128 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 26 (e) Such further documents, money and securities as are required by the provisions of the Indenture and the Supplemental Indenture providing for the issuance of such Additional Bonds. Subordinate Obligations. The Indenture permits the Agency to issue or incur Subordinate Debt in such principal amount as may be determined by the Agency. Such Subordinate Debt may be payable from any assets or property of the Agency, including Tax Revenues, on a subordinate basis to the payment of debt service on the Series 2021 Bonds. BOND INSURANCE [RESERVED] PROPERTY TAXATION IN CALIFORNIA Property Tax Collection and Distribution Procedures Classification. In the State, property which is subject to ad valorem taxes is classified as “secured” or “unsecured.” Secured and unsecured property is entered on separate parts of the assessment roll maintained by county assessors. The secured classification includes property on which any property tax levied by a county becomes a lien on that property. A tax levied on unsecured property does not become a lien against the taxed unsecured property, but may become a lien on certain other property owned by the taxpayer. Every tax which becomes a lien on secured property has priority over all other liens on the secured property arising pursuant to State law, regardless of the time of the creation of other liens. See the caption “RISK FACTORS – Bankruptcy and Foreclosure” for certain limitations on the priority of secured tax liens under federal law, however. Generally, ad valorem taxes are collected by a county for the benefit of the various taxing agencies (cities, schools and special districts) that share in the ad valorem tax (each, a taxing entity) and successor agencies eligible to receive distributions from the respective Redevelopment Property Tax Trust Fund. Collections. The method of collecting delinquent taxes is substantially different for secured and unsecured property. Counties have four ways of collecting unsecured personal property taxes: (i) initiating a civil action against the taxpayer; (ii) filing a certificate in the office of the county clerk specifying certain facts in order to obtain a judgment lien on certain property of the taxpayer; (iii) filing a certificate of delinquency for record in the county recorder’s office to obtain a lien on certain property of the taxpayer; and (iv) seizing and selling personal property, improvements or possessory interests belonging or assessed to the assessee. The exclusive means of enforcing the payment of delinquent taxes with respect to property on the secured roll is the sale of the property securing the taxes to the State for the amount of taxes which are delinquent. Penalty. A 10% penalty is added to delinquent taxes which have been levied with respect to property on the secured roll. In addition, property on the secured roll on which taxes are delinquent is declared in default by operation of law and declaration of the tax collector on or about June 30 of each fiscal year. Such property may thereafter be redeemed by payment of the delinquent taxes and a delinquency penalty, plus a redemption penalty of 1.5% per month to the time of redemption. If taxes are unpaid for a period of five years or more, the property is deeded to the State and then is subject to sale by the county tax collector. A 10% penalty also applies to delinquent taxes with respect to property on the unsecured roll, and further, an additional penalty of 1.5% per month accrues with respect to such taxes beginning on varying dates related to the tax bill mailing date. Delinquencies. The valuation of property is determined as of the January 1 lien date as equalized in August of each year and equal installments of taxes levied upon secured property become delinquent on the following December 10 and April 10. Taxes on unsecured property are due January 1 and become delinquent August 31. The County has not implemented a Teeter Plan with respect to the collection and distribution of taxes to redevelopment agencies, although the County distributes taxes to other taxing agencies pursuant to a 10.c Packet Pg. 129 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 27 Teeter Plan. Therefore, delinquencies in the payment of property taxes could have an adverse effect on the Agency’s ability to make timely debt service payments. See Table 6 under the caption “THE PROJECT AREAS – Levy and Collection” for historic property tax collection rates within the Project Areas. Supplemental Assessments. California Revenue and Taxation Code Section 75.70 provides for the supplemental assessment and taxation of property as of the occurrence of a change of ownership or completion of new construction. Prior to the enactment of this law, the assessment of such changes was permitted only as of the next tax lien date following the change, which delayed the realization of increased pro perty taxes from the new assessments for up to 14 months. Revenue and Taxation Code Section 75.70 provides increased revenue to the Redevelopment Property Tax Trust Fund to the extent that supplemental assessments of new construction or changes of ownership occur within the boundaries of the Project Areas subsequent to the January 1 lien date. To the extent that such supplemental assessments occur within the Project Areas, Tax Revenues may increase. However, because supplemental assessments cannot be accurately projected, no provision has been made by the Fiscal Consultant to reflect the impact of supplemental assessments on Tax Revenues. See Appendix A. Property Tax Administrative Costs. In 1990, the State Legislature enacted Senate Bill (“SB”) 2557 (Chapter 466, Statutes of 1990) which allows counties to charge for the cost of assessing, collecting and allocating property tax revenues to local government jurisdictions in proportion to the tax -derived revenues allocated to each. SB 1559 (Chapter 697, Statutes of 1992) explicitly includes redevelopment agencies among the jurisdictions which are subject to such charges. In addition, Sections 34182(e) and 34183(a) of the Dissolution Act allow administrative costs of the County Auditor-Controller for the cost of administering the provisions of the Dissolution Act, as well as the foregoing SB 2557 amounts, to be deducted from property tax revenues before moneys are deposited into the Redevelopment Property Tax Trust Fund. For Fiscal Year 2020- 21, the County’s administrative charge to the Agency for the Northwest Project Area was $77,382, and $410,679 for the Combined Project Areas, approximately 0.08% of gross tax increment revenues received by the Agency in such Fiscal Year. Pass-Through Agreements. Prior to 1994, under the Redevelopment Law, a redevelopment agency could enter into an agreement to pay tax increment revenues to any taxing agency that has territory located within a redevelopment project in an amount which in the redevelopment agency’s determination was appropriate to alleviate any financial burden or detriment caused by the redevelopment project. Such agreements normally provide for payment or pass-through of tax increment revenue directed to the affected taxing agency, and, therefore, are commonly referred to as pass-through agreements or tax sharing agreements. The Agency’s agreements with affected taxing agencies are referred to herein as “Pass-Through Agreements.” See the caption “THE PROJECT AREAS” for a discussion of Pass-Through Agreements for each Project Area. See also the caption “SECURITY FOR THE SERIES 2021 BONDS – Tax Increment Financing” and “—Obligations with Senior Right to Payment – Pass-Through Agreements” for additional discussion of the treatment of Pass- Through Agreements under the Dissolution Act. Statutory Pass-Through Amounts. The payment of Statutory Pass-Through Amounts results from: (i) redevelopment plan amendments which add territory in existing project areas on or after January 1, 1994; and (ii) redevelopment plan amendments which eliminate one or more limitations within a redevelopment plan (such as the removal of the time limit on the establishment of loans, advances and indebtedness). The calculation of the amount due to affected taxing entities is described in Sections 33607.5 and 33607.7 of the Redevelopment Law. See the captions “THE PROJECT AREAS” and “SECURITY FOR THE SERIES 2021 BONDS – Tax Increment Financing” and “—Obligations with Senior Right to Payment – Statutory Pass-Through Amounts” for further information regarding the applicability of the statutory pass-through provisions of the Redevelopment Law and the Dissolution Act to the Project Areas. 33676 Amounts. The Agency is required to pay certain inflationary increases in tax incremen t revenues referred to herein as 33676 Amounts to certain educational taxing agencies. See the caption “SECURITY FOR THE BONDS – Tax Increment Financing” and “—Obligations with Senior Right to Payment – Statutory Pass- Through Amounts” for a discussion of the Agency’s obligation to pay 33676 Amounts. 10.c Packet Pg. 130 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 28 Recognized Obligation Payment Schedule. The Dissolution Act provides that, commencing on the date that the first Recognized Obligation Payment Schedule is valid, only those payments listed in the Recognized Obligation Payment Schedule may be made by the Agency from the funds specified in the Recognized Obligation Payment Schedule. Before each February 1, with respect to the following fiscal year, the Dissolution Act requires successor agencies to prepare and approve, and submit to the successor agency’s oversight board and the DOF for approval, a Recognized Obligation Payment Schedule pursuant to which enforceable obligations (as defined in the Dissolution Act) of the successor agency are listed, together with the source of funds to be used to pay for each enforceable obligation. Tax Revenues will not be distributed from the Redevelopment Property Tax Trust Fund by the County Auditor -Controller to the Agency’s Redevelopment Obligation Retirement Fund without a duly approved and effective Recognized Obligation Payment Schedule obtained in sufficient time prior to each June 1 property tax distribution date. See the caption “SECURITY FOR THE SERIES 2021 BONDS – Recognized Obligation Payment Schedule” and “RISK FACTORS – Recognized Obligation Payment Schedule.” See also “SECURITY FOR THE BONDS – Last and Final Recognized Obligation Payment Schedule” for a description of the Last and Final ROPS authorized by the Dissolution Act pursuant to SB 107. Unitary Property AB 2890 (Statutes of 1986, Chapter 1457) provides that, commencing with State Fiscal Year 1988-89, assessed value derived from State-assessed unitary property (consisting mostly of operational property owned by utility companies) is to be allocated county-wide as follows: (i) each tax rate area will receive the same amount from each assessed utility received in the previous fiscal year unless the applicable county -wide values are insufficient to do so, in which case values will be allocated to each tax rate area o n a pro rata basis; and (ii) if values to be allocated are greater than in the previous fiscal year, each tax rate area will receive a pro rata share of the increase from each assessed utility according to a specified formula. Additionally, the lien date o n State-assessed property was changed from March 1 to January 1. AB 454 (Statutes of 1987, Chapter 921) further modified Chapter 1457 regarding the distribution of tax revenues derived from property assessed by the State Board of Equalization. AB 454 provi des for the consolidation of all State-assessed property, except for regulated railroad property, into a single tax rate area in each county. AB 454 further provides for a new method of establishing tax rates on State-assessed property and distribution of property tax revenue derived from State-assessed property to taxing jurisdictions within each county in accordance with a new formula. Railroads will continue to be assessed and revenues allocated to all tax rate areas where railroad property is located. The intent of AB 2890 and AB 454 is to provide redevelopment agencies with their appropriate share of revenue generated from property assessed by the State Board of Equalization. The County Auditor-Controller allocated an aggregate total of $151,000 of unitary tax revenue to the Northwest Project Area and $1,520,000 for the Combined Project Areas for Fiscal Year 2020-21. Tax Revenues from unitary property are not included in the gross tax increment projections in the Fiscal Consultant ’s Report and this Preliminary Official Statement. Article XIIIA of the State Constitution On June 6, 1978, State voters approved an amendment (commonly known as Proposition 13 or the Jarvis-Gann Initiative) which added Article XIIIA to the State Constitution. Article XIIIA limits the amount of ad valorem taxes on real property to 1% of “full cash value” of such property, as determined by the county assessor. Article XIIIA defines “full cash value” to mean “the county assessor’s valuation of real property as shown on the State Fiscal Year 1975-76 tax bill under `full cash value,’ or, thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment.” Furthermore, the “full cash value” of all real property may be increased to reflect the rate of inflation, as shown by the consumer price index, not to exceed 2% per year, or may be reduced. 10.c Packet Pg. 131 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 29 Article XIIIA has subsequently been amended to permit reduction of the “full cash value” base in the event of declining property values caused by substantial damage, destruction or other factors, and to provide that there would be no increase in the “full cash value” base in the event of reconstruction of property damaged or destroyed in a disaster and in other special circumstances. Article XIIIA: (i) exempts from the 1% tax limitation taxes to pay debt service on: (a) indebtedness approved by the voters prior to July 1, 1978; or (b) bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978, by two-thirds of the votes cast by the voters voting on the proposition; (ii) requires a vote of two-thirds of the qualified electorate to impose special taxes, or certain additional ad valorem taxes; and (iii) requires the approval of two-thirds of all members of the State Legislature to change any State tax laws resulting in increased tax revenues. The validity of Article XIIIA has been upheld by both the State Supreme Court and the United States Supreme Court. In the general election held on November 4, 1986, voters of the State approved two measures, Propositions 58 and 60, which further amended Article XIIIA. Proposition 58 amended Article XIIIA to provide that the terms “purchase” and “change of ownership,” for the purposes of determining full cash value of property under Article XIIIA, do not include the purchase or transfer of: (1) real property between spouses; and (2) the principal residence and the first $1,000,000 of other property between parents and children. This amendment to Article XIIIA may reduce the rate of growth of local property tax revenues. Proposition 60 amended Article XIIIA to permit the State Legislature to allow persons over the age of 55 who sell their residence and buy or build another of equal or lesser value within two years in the same county to transfer the old residence assessed value to the new residence. As a result of the State Legislature’s action, the growth of property tax revenues may decline. Legislation enacted by the State Legislature to implement Article XIIIA provides that all taxable property is shown at full assessed value as described above. In conformity with this procedure, all taxable property value included in this Preliminary Official Statement is shown at 100% of assessed value and all general tax rates reflect the $1 per $100 of taxable value (except as noted). Tax rates for voter -approved bonded indebtedness and pension liabilities are also applied to 100% of assessed value. Appropriations Limitation — Article XIIIB On November 6, 1979, State voters approved Proposition 4 (also known as the Gann Initiative), which added Article XIIIB to the State Constitution. Article XIIIB limits the annual appropriations of the State and its political subdivisions to the level of appropriations for the prior fiscal year, as adjusted for changes in the cost of living, population and services rendered by the government entity. The “base year” for establishing such appropriations limit is State Fiscal Year 1978-79, and the limit is to be adjusted annually to reflect changes in population, consumer prices and certain increases in the cost of services provided by these public agencies. Section 33678 of the Redevelopment Law provides that the allocation of taxes to a redevelopment agency for the purpose of paying principal of, or interest on, loans, advances, or indebtedness is not deemed to be the receipt by an agency of proceeds of taxes levied by or on behalf of an agency within the meaning of Article XIIIB, nor will such portion of taxes be deemed receipt of proceeds of taxes by, or an appropriation subject to the limitation of, any other public body within the meaning or for the purpose of the Constitution and laws of the State, including Section 33678 of the Redevelopment Law. The constitutionality of Section 33678 has been upheld in two State appellate court decisions. On the basis of these decisions, the Agency does not believe that it is subject to Article XIIIB and has not adopted an appropriations limit. 10.c Packet Pg. 132 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 30 Articles XIIIC and XIIID of the State Constitution At the election held on November 5, 1996, Proposition 218 was passed by the voters of California. The initiative added Articles XIIIC and XIIID to the State Constitution. Provisions in the two articles affect the ability of local government to raise revenues. The Bonds are secured by sources of revenues that are not subject to limitation by Proposition 218. See the caption “—Propositions 218 and 26.” Proposition 87 On November 8, 1988, the voters of the State approved Proposition 87, which amended Article XVI, Section 16 of the State Constitution to provide that property tax revenue attributable to the imposition of taxes on property within a redevelopment project area for the purpose of paying debt service on certain bonded indebtedness issued by a taxing entity (not the Former Agency or the Agency) and approved by the voters of the taxing entity after January 1, 1989 will be allocated solely to the payment of such indebtedness, and not to redevelopment agencies. SB 107 (Chapter 325, Statutes of 2015), which became effective on September 22, 2015, amended Section 34183(a)(1) of the Dissolution Act to provide that such debt service override revenues approved by the voters for the purpose of supporting pension programs or capital projects or programs related to the State Water Project that are not pledged to or not needed for debt service on Agency debt will be allocated and paid to the entity that levies the override. The Agency has pledged override revenues attributable to the Project Areas. Appeals of Assessed Values Pursuant to State law, a property owner may apply for a reduction of the property tax assessment for such owner’s property by filing a written application, in a form prescribed by the State Board of Equalization, with the appropriate county board of equalization or assessment appeals board. In the County, a property owner desiring to reduce the assessed value of such owner ’s property in any one year must submit an application to the County Assessment Appeals Board (the “Appeals Board”). Applications for any tax year must be submitted by November 30 of such tax year. Following a review of each application by the staff of the County Assessor’s Office, the staff makes a recommendation to the Appeals Board on each application which has not been rejected for incompleteness or untimeliness or withdrawn. The Appeals Board holds a hearing and either reduces or confirms the assessment. The Appeals Board generally is required to determine the outcome of appeals within two years of each appeal’s filing date. Any reduction in the assessment ultimately granted applies only to the year for which application is made and during which the written application is filed. The assessed value increases to its pre -reduction level for fiscal years following the year for which the reduction application is filed. However, if the taxpayer establishes through proof of comparable values that the property continues to be overvalued (known as “ongoing hardship”), the Assessor has the power to grant a reduction not only for the year for which application was originally made, but also for the then current year as well. Appeals for reduction in the “base year” value of an assessment, which generally must be made within three years of the date of change in ownership or completion of new construction that determined the base year, if successful, reduce the assessment for the year in which the appeal is taken and prospectively thereafter. Moreover, in the case of any reduction in any one year of assessed value granted for “ongoing hardship” in the then current year, and also in any cases involving stipulated appeals for prior years relating to base year and personal property assessments, the property tax revenues from which Tax Revenues are derived attributable to such properties will be reduced in the then current year. In practice, such a reduced assessment may remain in effect beyond the year in which it is granted. See Appendix A for information regarding the appeals pending with respect to the assessed valuations of the top ten property owners within the Northwest Project Area and Combined Project Areas. 10.c Packet Pg. 133 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 31 Proposition 8 Proposition 8, approved in 1978 (California Revenue and Taxation Code Section 51(b)), provides for the assessment of real property at the lesser of its originally determined (base year) full cash value compounded annually by the inflation factor, or its full cash value as of the lien date, taking into account reductions in value due to damage, destruction, obsolescence or other factors causing a decline in market value. Reductions pursuant to Proposition 8 may be initiated by the County Assessor or requested by the property owner, and such reductions apply only to a single tax year. After a roll reduction is granted pursuant to Proposition 8, the property is reviewed on an annual basis to determine its full cash value and the valuation is adjusted accordingly. This may result in further reductions or in value increases. Such increases must be in accordance with the full cash value of the property and may exceed the maximum annual inflationary growth rate allowed on other properties under Article XIIIA of the State Constitution. Once the property has regained its prior value, adjusted for inflation, it once again is subject to the annual inflationary factor growth rate allowed under Article XIIIA. The County Assessor has the ability to use Proposition 8 criteria to apply blanket reductions in valuation to classes of property affected by particular negative economic conditions. The Agency is aware that the County Assessor made such reductions to assessed values of residential property in the Project Areas and the City in Fiscal Years 2012-13 through 2014-15, all of which have now been restored due to robust growth during Fiscal Years 2015-16 through 2020-21 in residential, commercial and industrial values as well as unsecured values. The Fiscal Consultant’s Report does not assume any future reductions in assessed valuations as a result of Proposition 8, but there can be no assurance that such reductions will not be made in the future. See the Fiscal Consultant’s Report for further information with respect to reductions in assessed value within the Project Areas in the last four fiscal years. For a summary of the recent history of Proposition 8 reductions in the Project Areas, see “THE PROJECT AREAS – Assessment Appeals.” Propositions 218 and 26 On November 5, 1996, State voters approved Proposition 218 – Voter Approval for Local Government Taxes – Limitation on Fees, Assessments, and Charges – Initiative Constitutional Amendment. Proposition 218 added Articles XIIIC and XIIID to the State Constitution, imposing certain vote requirements and other limitations on the imposition of new or increased taxes, assessments and property-related fees and charges. On November 2, 2010, California voters approved Proposition 26, the “Supermajority Vote to Pass New Taxes and Fees Act.” Proposition 26 amended Article XIIIC of the State Constitution by adding an expansive definition for the term “tax,” which previously was not defined under the State Constitution. Tax Revenues securing the Bonds are derived from property taxes which are outside the scope of taxes, assessments and property-related fees and charges which are limited by Proposition 218 and outside of the scope of taxes which are limited by Proposition 26. Future Initiatives Articles XIIIA, XIIIB, XIIIC and Article XIIID to the State Constitution and certain other propositions affecting property tax levies were each adopted as measures which qualified for the ballot pursuant to the State’s initiative process. From time to time other initiative measures could be adopted, further affecting Agency revenues or the Agency’s ability to expend revenues. THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO The Former Agency was established pursuant to the Redevelopment Law and was activated by Resolution No. 2361 adopted by the Mayor and City Council on June 23, 1952, at which time the Mayor and 10.c Packet Pg. 134 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 32 City Council declared itself to be the governing board of the Agency. On June 28, 2011, AB X1 26 was enacted as Chapter 5, Statutes of 2011, together with a companion bill, AB X1 27. A lawsuit entitled California Redevelopment Association, et al. v. Matosantos, et al., was brought in the State Supreme Court challenging the constitutionality of AB X1 26 and AB X1 27. In a published decision (53 Cal. 4th 231 (Dec. 29, 2011)), the State Supreme Court largely upheld AB X1 26, invalidated AB X1 27, and held that AB X1 26 may be severed from AB X1 27 and enforced independently. As a result of AB X1 26 and the decision of the State Supreme Court, as of February 1, 2012, all redevelopment agencies in the State, including the Former Agency, were dissolved, and successor agencies were designated as successor entities to the former redevelopment agencies to expeditiously wind down the affairs of the former redevelopment agencies. On January 9, 2012, pursuant to Resolution No. 2012-12 and Section 34173 of the Dissolution Act, the Mayor and City Council of the City elected to serve as the successor agency to the Redevelopment Agency of the City of San Bernardino. Subdivision (g) of Section 34173 of the Dissolution Act, added by AB 1484, expressly affirms that the Successor Agency is a separate public entity from the City, that the two entities shall not merge and that the liabilities of the Former Agency will not be transferred to the City nor will the assets of the Former Agency become assets of the City; however, the assets and li abilities of the Former Agency were transferred by operation of law to the Successor Agency on February 1, 2012. The Agency is governed by an eight-member governing board (the “Board”) which consists of the members of the Mayor and City Council of the City. The seven members of the City Council serve as the governing body of the Agency. The Mayor of the City serves as Agency Chairperson. Agency Powers All powers of the Agency are vested in its eight members, who are the elected Mayor and seven members of the Common Council. Pursuant to the Dissolution Act, the Agency is a separate public body from the City and successor to the organizational status of the Former Agency, but without any legal authority to participate in redevelopment activities except to complete any work related to an approved enforceable obligation. The Agency is tasked with expeditiously winding down the affairs of the Former Agency pursuant to the procedures and provisions of the Dissolution Act. Under the Dissolution Act, many Agency actions are subject to approval by the Oversight Board, as well as review by the DOF. The State has strict laws regarding public meetings (known as the Ralph M. Brown Act) which generally make all Agency and Oversight Board meetings open to the public in a similar manner as Mayor and City Council meetings. Previously, Section 33675 of the Redevelopment Law required the Former Agency to file not later than the first day of October of each year with the County Auditor of a statement of i ndebtedness certified by the chief fiscal officer of the Former Agency for each redevelopment plan which provides for the allocation of taxes (i.e., the Redevelopment Plan). The statement of indebtedness was required to contain the date on which the bonds were delivered, the principal amount, term, purposes and interest rate of the bonds and the outstanding balance and amount due on the bonds. Similar information was required to be given for each loan, advance or indebtedness that the Former Agency had incurred or entered into which is payable from tax increment. Section 33675 also provided that payments of tax increment revenues from the County Auditor-Controller to the Former Agency could not exceed the amounts shown on the Former Agency’s statement of indebtedness. The Dissolution Act eliminates this requirement and provides that, commencing on the date that the first Recognized Obligation Payment Schedule is valid thereunder, the Recognized Obligation Payment Schedule supersedes the statement of indebtedness previously required under the Redevelopment Law, and that, commencing on such date, the statement of indebtedness will no longer be prepared nor have any effect under the Redevelopment Law. See the caption “SECURITY FOR THE SERIES 2021 BONDS – Recognized Obligation Payment Schedule.” 10.c Packet Pg. 135 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 33 THE PROJECT AREAS Under the Redevelopment Law, a city or county that activated a redevelopment agency was required to adopt, by ordinance, a redevelopment plan for each redevelopment project to be undertaken by the redevelopment agency. A redevelopment agency could only undertake those activities within a redevelopment project specifically authorized in the adopted redevelopment plan. A redevelopment plan is a legal document, the content of which is largely prescribed in the Redevelopment Law, rather than a “plan” in the customary sense of the word. Each Redevelopment Plan originally included separate time and financial limitations applicable to each Project Area. SB 107 provides that the time limits for receiving property tax revenues and the limitation on the amount of property tax revenues that may be received by the Former Agency and the Agency set forth in the Redevelopment Plan are not effective for purposes of paying the Agency’s enforceable obligations. Accordingly, the projections set forth in this Preliminary Official Statement and in the Fiscal Consultant’s Report attached to this Preliminary Official Statement as Appendix A do not take into account the time and financial limitations set forth in the Redevelopment Pl ans the Project Areas. See also “—General” and “— Project Area Characteristics” for additional information regarding the Project Areas, including information on land use, assessed valuation and property ownership, assessed valuation and Tax Revenues generated within the Project Areas. See “SECURITY FOR THE SERIES 2021 BONDS – General” and “—Security of Bonds; Equal Security.” General A brief description of the location and land uses within each Project Area is set forth below. The Northwest Project. The Redevelopment Plan for the Northwest Project was adopted on July 6, 1981 by Ordinance No. MC-189. Located in the northwest quadrant of the City of San Bernardino, the Northwest Project is divided into Subarea A and Subarea B. The Northwest Project primaril y encompasses the parcels along thoroughfares in the northwest area of the City. This includes portions of Highland Avenue, Muscoy Street and Mount Vernon Avenue. Subarea A, encompassing 940 acres, is located south of Cajon Boulevard, north of Seventh Street and west of Interstate 215. This area focuses on commercial corridors along portions of Highland Avenue, Baseline Avenue, Medical Center Drive and Mount Vernon Avenue. San Bernardino Community Hospital and the Westside Shopping Center are major employer s within this area. Subarea B, encompassing 500 acres, is located north of Devil’s Creek Diversion Channel, southeasterly of Palm, south of Interstate 215, and east and west of Cajon Boulevard. This area is designated for industrial uses and includes approximately 524 acres of vacant land. A bridge was built connecting the industrial area to the State College Business Park industrial area, allowing for better freeway access. The area is in close proximity to Interstate 215 and Interstate 15 freeway interchange. Meadowbrook Project/Central City Project No. I. The Redevelopment Plan for the Meadowbrook Project was adopted on July 21, 1958 by Ordinance No. 2233 and the Redevelopment Plan for the Central City Project No. 1 was adopted on February 23, 1965 by Ordinance No. 2649. The Meadowbrook Project and the Central City Project No. 1 were merged on November 9, 1977 by Ordinance No. 3683 as permitted by the Redevelopment Law at that time. Together, these Project Areas contain 192.5 acres located in the center of the City. The County Auditor-Controller does not report Redevelopment Property Tax Trust Fund moneys separately for the Meadowbrook Project and the Central City Project No. 1. State College Project. The Redevelopment Plan for the State College Project was adopted on April 27, 1970 by Ordinance No. 3067. The State College Project spans 1,800 acres. The Project Area is located within the northwest sector of the City and consists of single and multi-family residential, open space, recreational, commercial and industrial uses. 10.c Packet Pg. 136 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 34 The Central City North Project. The Redevelopment Plan for the Central City North Project was adopted on August 6, 1973 by Ordinance No. 3366 and contains 278 acres. Located east of the I -215 Freeway near the City’s Civic Center, Central City North is a mixture of retail, commercial, restaurant, professional service, and single family residential uses. The Central City West Project. The Redevelopment Plan for the Central City West Project was adopted on February 17, 1976 by Ordinance No. 3553. The Central City West Project encompasses four acres located at the northeast corner of Fifth Street and Mountain Vernon Avenue. The Central City West Project serves as the gateway to the upper Mt. Vernon Avenue retail and commercial area. The Central City East Project. The Redevelopment Plan for the Central City East Project was adopted on May 3, 1976 by Ordinance No. 3571, and consists of 225 acres. Located in the northeast portion of the Merged Central City Projects, in the Center of the City, the Central City East Project is primarily devoted to governmental and associated uses. Governmental facilities located within this Project Area include the Civic Center Complex, Courthouse, State General Services Administration Facilities, County Administrative Offices, Hall of Records, Caltrans and associated federal offices. Professional office use has also developed in this Project Area. About twenty-five percent (25%) of this Project Area has been designated for open space and recreational use: Seccombe Lake, a State Urban Recreation Area comprised of 55 acres of land, is located in the northeast section of this Project Area. The Central City South Project. The Redevelopment Plan for the Central City South Project was adopted on May 3, 1976 by Ordinance No. 3572. The Central City South Project covers approximately 590 acres and links the City’s two major shopping centers, the Central City Mall and the Inland Central Mall. It is bounded by Interstate 215 on the west and Sierra Way and a portion of Arrowhead Avenue on the east. “E” Street dissects this Project Area with the adjacent properties devoted to retail commercial or service related commercial uses. Also located within this Project Area is the National Orange Show, whose 136 -acre site includes exhibit buildings, the fairground, racetrack and stadium and has the potential of developing into a major entertainment complex. After the passage of the Jarvis-Gann Initiative (Article XIIIA of the Constitution of the State of California) in 1978, the Central City-Meadowbrook Project Area suffered a substantial reduction in tax increment revenues. Because of the age of this Project Area and the limited amount of vacant land left for development, tax increment revenue growth was severely limited. So substantial was t he decline and reduction in growth that there were not sufficient revenues to service this Project Area’s annual debt payments. To rectify the problem, the State Legislature, upon the Agency’s request, enacted special legislation for inclusion into California’s Redevelopment Law (Sections 33476, 33476.3 and 33476.5 of the Redevelopment Law) that merged, for the purposes of financing, the Central City-Meadowbrook Project Area with Central City East and Central City South to create the Central City Merged Project Area. The Southeast Industrial Park Project. The Redevelopment Plan for the Southeast Industrial Park Project was adopted on June 21, 1976 by Ordinance No. 3583. The Southeast Project includes 870 acres. This Project Area is located in the southeast quadrant of the City and is divided into a 520-acre western section and a 350-acre eastern section. The western end is devoted primarily to commercial complexes and professional offices, while the eastern area is zoned for light industrial. The western section is adjacent to the I-10 and I-215 Freeways interchange and offers a restaurant row, a mix of professional office complexes, a Hilton hotel with convention facilities and various motels, retail, commercial, and light industrial properties. West of the I-215 Freeway is the San Bernardino Auto Plaza. The eastern section has both I-10 Freeway and rail access and is in close proximity to the San Bernardino International Airport. Approximately 112 acres of vacant land is located in this Project Area. 10.c Packet Pg. 137 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 35 The Tri-City Project. The Redevelopment Plan for the Tri-City Project was adopted on June 20, 1983 by Ordinance No. MC-283 and contains 378 acres. Located in the southeast section of San Bernardino, the Tri - City Project Area is divided into two areas: Subarea 1 and Subarea 2. Subarea 1 spans 95 acres and is located west of Del Rosa Avenue and north of Sixth Street to Baseline. This subarea is zoned for residential and is occupied by apartment units on a 12 -acre site. The remainder of the land is owned by the Agency. Subarea 2 consists of 283 acres and is located east of Waterman Avenue, west of Tippecanoe Avenue, and north of the I-10 Freeway. This subarea is highlighted by the Tri-City Corporate Center which is a mix of office, light industrial, retail, and commercial uses, including a variety of restaurants. The South Valle Project. The Redevelopment Plan for the South Valle Project was adopted on July 9, 1984 by Ordinance No. MC-387 and contains 289 acres. The South Valle Project is located south of the I-10 Freeway within the southern portion of the city limits. The South Valle Project is adjacent to the commerce center of the Southeast Industrial Park and Subarea 2 of the Tri-City Project Area. South Valle is ideal for commercial and light industrial uses and is within the sphere of two commercial and industrial centers. This Project Area has rail service through the center with a transcontinental truck terminal located adjacent to the project at the southwest corner of Hunts Lane and Redlands Boulevard. The Uptown Project. The Redevelopment Plan for the Uptown Project was adopted on April 16, 1986 by Ordinance No. MC-527. The Uptown Redevelopment Project encompasses approximately 433 acres and is divided into two subareas, identified as Subarea A and Subarea B. Subarea A comprises approximately 348 acres located along Highland Avenue and Baseline Street between Interstate 215 on the west and Waterman Avenue on the east, and along “E” Street, south of Highland Avenue and north of Eighth Street. This subarea has a predominance of commercial land uses. Subarea B comprises approximately 84 acres and is bounded by Santa Fe Railroad yards to the north, Interstate 215 on the east, Rialto Avenue and King Street on the South and Mount Vernon Avenue to the west. This subarea includes a variety of land uses, such as commercial, industrial and residential. The Mt. Vernon Corridor Project. The Redevelopment Plan for the Mt. Vernon Corridor Project was adopted on June 25, 1990 by Ordinance No. MC-733. The Mt. Vernon Corridor Project consists of three separate subareas, totaling 1,938 acres. Subarea A consists of 1,722 acres and incorporates commercial uses along its main thoroughfares, Mt. Vernon Avenue and Foothill Boulevard. The northwest portion of this subarea is public flood control land. Subarea B consisting of 115 acres is generally located south of Rialto Avenue, west of the I-215 Freeway, north of Inland Center Drive and east of “I” Street. It is a combination of commercial, industrial, residential and public land uses. With residential predominately located along the west side of the I- 215 freeway between Fifth Street and Baseline, Subarea C consists of 101 acres of flood control land, adjacent and west of the I-215 freeway and northwesterly of Orange Show Road. The 40th Street Project. The Redevelopment Plan for the 40’h Street Project was adopted on July 10, 2000 by Ordinance No. MC-1077. The 40th Street Project contains 432 acres and is comprised of two noncontiguous areas known as Subarea 1 and Subarea 2. Subarea 1 is the larger of the two subareas and is generally bordered by 44th Street to the north, Sepulveda and Waterman Avenues to the east, Ralston Avenue and Sonora Street to the south, and Electric and Mountain Avenues to the west. The local neighborhood is served by a mix of retail and commercial uses. Residential uses are primarily north and south of 40 ’1’ Street, and east of Sierra Way. Subarea 2 consists of multi -unit residential and vacant land just east of Sierra Way and along Waterman Avenue. 10.c Packet Pg. 138 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 36 Project Area Characteristics A breakdown of the taxable valuations and resulting gross tax increment in each Project Area for Fiscal Year 2020-21 is set forth in the below table: TABLE 2 SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE COUNTY OF SAN BERNARDINO Assessed and Incremental Values Project Area Base Year Fiscal Year 2020-21 Assessed Valuation Base Year Value Incremental Taxable Value Volatility 1. Meadowbrook/CC 1964-65 $ 97,024,419 $ 18,929,244 $ 78,095,175 0.20 2. State College 1969-70 1,336,075,369 9,639,738 1,326,435,631 0.01 3. Central City North 1972-73 120,711,452 29,368,137 91,343,315 0.24 4. Central City West 1975-76 1,961,113 110,520 1,850,593 0.06 5. Central City East 1975-76 91,645,073 8,423,256 83,221,817 0.09 6. Central City South 1975-76 313,000,947 42,967,721 270,033,226 0.14 7. S.E. Industrial Park 1975-76 689,546,734 8,174,754 681,371,980 0.01 8. Northwest 1981-82 896,193,015 34,418,781 861,774,234 0.04 9. Tri-City 1982-83 482,123,766 15,090,647 467,033,119 0.03 10. South Valle 1983-84 150,223,385 21,214,633 129,008,752 0.14 11. Uptown 1985-86 251,580,003 91,055,177 160,524,826 0.36 12. Mt. Vernon 1989-90 266,883,311 79,769,401 187,113,910 0.30 13. 40th Street 1999-00 123,555,306 43,827,320 79,727,986 0.35 Combined Project Areas Total $4,820,523,893 $402,989,329 $4,417,534,564 0.08 Source: HdL Coren & Cone. 10.c Packet Pg. 139 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 37 Taxable values for each Project Area for the current and past four fiscal years are set forth in the below table. TABLE 3 SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE COUNTY OF SAN BERNARDINO Historic Taxable Values Project Area Base Year Assessed Value Fiscal Year 2016-17 Fiscal Year 2017-18 Fiscal Year 2018-19 Fiscal Year 2019-20 Fiscal Year 2020-21 1. Meadowbrook/CC $ 18,929,244 $ 107,953,550 $ 107,999,880 $ 108,828,017 $ 93,793,841 $ 97,024,419 2. State College 9,639,738 1,003,459,896 1,043,771,475 1,122,355,033 1,263,119,786 1,336,075,369 3. Central City North 29,368,137 101,875,844 98,226,152 102,909,144 115,520,063 120,711,452 4. Central City West 110,520 1,940,038 1,853,823 1,887,348 1,908,901 1,961,113 5. Central City East 8,423,256 71,232,331 70,246,656 74,214,404 77,188,314 91,645,073 6. Central City South 42,967,721 270,750,467 269,985,593 274,878,198 291,444,946 313,000,947 7. S.E. Industrial Park 8,174,754 495,888,415 518,437,972 553,037,244 598,464,951 689,546,734 8. Northwest 34,418,781 618,121,998 689,152,679 760,477,901 846,754,558 896,193,015 9. Tri-City 15,090,647 452,548,327 462,175,025 452,430,564 475,425,551 482,123,766 10. South Valle 21,214,633 138,726,769 136,514,681 139,950,779 143,247,804 150,223,385 11. Uptown 91,055,177 208,297,864 214,122,254 223,648,815 242,020,020 251,580,003 12. Mt. Vernon 79,769,401 214,646,873 219,420,670 230,017,815 255,269,642 266,883,311 13. 40th Street 43,827,320 103,694,267 105,554,092 110,471,707 117,635,775 123,555,306 Combined Project Areas Total $402,989,329 $3,789,136,639 $3,937,460,952 $4,155,106,969 $4,521,794,152 $4,820,523,893 Source: HdL Coren & Cone. 10.c Packet Pg. 140 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency 38 The top ten taxpayers for the Northwest Project Area and Combined Project Areas for the current fiscal year are set forth in the tables below. TABLE 4 A SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE COUNTY OF SAN BERNARDINO NORTHWEST PROJECT AREA Top Ten Taxpayers (Fiscal Year 2020-21) Property Owner Total Assessed Value % of Project Area Value(1) % of Project Area Incremental Value 1. EXETER 6227 CAJON LLC(2) $ 99,705,000 11.13% 11.57% 2. GEAR 6207 CAJON PROPCO LLC(3) 98,570,760 11.00 11.44 3. LIT INDUSTRIAL LP(4) 74,459,470 8.31 8.64 4. IE LOGISTICS INC 59,244,807 6.61 6.87 5. INDUSTRIAL PARKWAY LLC 56,248,729 6.28 6.53 6. 5959 PALM AVENUE INVESTORS LLC 55,034,166 6.14 6.39 7. THE HERRICK CORPORATION 22,555,250 2.52 2.62 8. JC PENNEY CORPORATION INC(2) 20,519,928 2.29 2.38 9. MAPEI CORPORATION 20,460,214 2.28 2.37 10. SB INDUSTRIAL PARTNERS 18,794,056 2.10 2.18 FY 2020-21 Top Ten Total Value $525,592,380 Project Area Total Value $896,193,015 58.65% Project Area Incremental Value $861,774,234 60.99% (1) Based on Fiscal Year 2020-21 total assessed value of $896,193,015. (2) Taxpayer owns two secured parcels which serve as a distribution warehouse consisting of a 805,980 square feet building that was constructed in 2015. The building was purchased by this taxpayer in 2019. It has been occupied by Bob’s Discount Furniture for distribution of furnishings shortly following its construction. (3) Taxpayer owns one secured parcel which serves as a distribution warehouse consisting of a 828,440 square feet building that was constructed in 2014. The current owner purchased the property in 2018. The building has been occupied, in part, by LG Electronics USA since 2018. (4) Taxpayer has pending assessment appeals on properties owned . Taxpayer owns one secured parcel consisting of a 183,030 square foot building built in 2007 and occupied by FedEx Freight Inc. The property has been o wned by this taxpayer since it was constructed and FedEx has occupied the building since 2010. Source: HdL Coren & Cone. 10.c Packet Pg. 141 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 39 TABLE 4 B SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE COUNTY OF SAN BERNARDINO COMBINED PROJECT AREAS(1) Top Ten Taxpayers (Fiscal Year 2020-21) Location of Parcels Assessed Value % of Project Area Value(2) % of Project Area Incremental Value 1. EXETER 6227 CAJON LLC(3) Northwest Project $ 99,705,000 2.07% 2.26% 2. GEAR 6207 CAJON PROPCO LLC(4) Northwest Project 98,570,760 2.04 2.23 3. GWS #4 DEVELOPMENT LLC(5) Southeast Industrial Project 83,680,000 1.74 1.89 4. CIDF II – CA1BO1-B03 LLC State College Park Project 74,460,000 1.54 1.69 5. LIT INDUSTRIAL LLP(6) Northwest Project 74,459,470 1.54 1.69 6. IE LOGISTICS INC. Northwest Project 59,244,807 1.23 1.34 7. KB TRI CITY I DST Tri-City Project Area 58,446,000 1.21 1.32 8. TEACHERS INSURANCE AND ANNUITY ASSOCIATION(2) State College Park Project 59,398,685 1.21 1.32 9. INDUSTRIAL PARKWAY LLC Northwest Project 56,248,729 1.17 1.27 10. 5959 PALM AVENUE INVESTORS LLC Northwest Project 55,034,166 1.14 1.25 Total $ 718,247,617 [ ] Project Area Total $4,820,523,893 14.90% Incremental Values $4,417,534,564 16.26% (1) Includes Northwest Project Area. (2) Based on Fiscal Year 2020-21 total assessed value of $4,820,523,893. (3) Taxpayer owns two secured parcels which serve as a distribution warehouse consisting of a 805,980 square feet building that was constructed in 2015. The building was purchased by this taxpayer in 2019. It has been occupied by Bob’s Discount Furniture for distribution of furnishings shortly following its construction. (4) Taxpayer owns one secured parcel which serves as a distribution warehouse consisting of a 828,440 square feet building that was constructed in 2014. The current owner purchased the property in 2018. The building has been occupied, in part, by LG Electronics USA since 2018. (5) Taxpayer owns one secured parcel consisting of a newly constructed 1 million square foot distribution warehouse located on Waterman Avenue at Orange Show Drive. No record is yet available for occupancy. Source: HdL Coren & Cone. 10.c Packet Pg. 142 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 40 The assessed valuation of the Northwest Project Area and Combined Project Areas for the current fiscal year by land use category are set forth in the tables below. TABLE 5 A SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE COUNTY OF SAN BERNARDINO NORTHWEST PROJECT AREA (PROJECT AREA TAX REVENUES) Assessed Valuations by Land Uses (Fiscal Year 2020-21) Land Use Category No. of Parcels 2020-21 Taxable Value Percentage of Total Taxable Value Residential 859 $146,013,172 16.29% Commercial 78 79,485,442 8.87 Industrial 40 531,015,981 59.25 Government Owned 1 783,472 0.09 Institutional 14 15,388,036 1.72 Miscellaneous 27 7,525,050 0.84 Recreational 5 1,085,673 0.12 Vacant 293 27,307,891 3.05 Exempt 185 0 0.00 Subtotal 1,502 $808,604,717 90.23% SBE 544,500 0.06% Unsecured 87,043,798 9.71 Subtotal $ 87,588,298 9.77% Total: 1,502 $896,193,015 100.00% Source: HdL Coren & Cone. 10.c Packet Pg. 143 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 41 TABLE 5 B SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE COUNTY OF SAN BERNARDINO COMBINED PROJECT AREAS(1) (RPTTF DEPOSITS) Assessed Valuations by Land Uses (Fiscal Year 2020-21) Category No. of Parcels Net Taxable Value % of Total Residential 5,237 $1,100,745,085 22.83% Commercial 1,404 1,525,212,105 31.64 Industrial 480 1,487,940,231 30.87 Government Owned 4 1,991,705 0.04 Institutional 50 22,679,035 0.47 Miscellaneous 306 84,655,413 1.76 Recreational 24 15,044,655 0.31 Vacant 1,380 128,585,775 2.67 Exempt 1,250 0 0.00 Subtotal 10,135 $4,366,854,004 90.59% SBE Non-unitary 3,650,445 0.08% Unsecured 450,019,444 9.34 Subtotal $ 453,669,889 9.41% Total: 10,135 $4,820,523,893 100.00% (1) Includes Northwest Project Area. Source: HdL Coren & Cone. Levy and Collection The following table sets forth property tax levy and collections in the Northwest Project Area and Combined Project Areas from Fiscal Year 2015-16 through 2019-20. The County has not adopted the “Teeter Plan” alternative method for collection of taxes and, therefore, the receipt of property taxes is subject to delinquencies. Fiscal Year 2019-20 collections receipts of tax increment have averaged approximately 101.96% of the levy for the Northwest Project Area and 104.79% of the Combined Project Areas. TABLE 6 A SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE COUNTY OF SAN BERNARDINO NORTHWEST PROJECT AREA (PROJECT AREA TAX REVENUES) Tax Levy and Collections (Fiscal Years 2015-16 to 2019-20) Fiscal Year Ending June 30 Original Tax Levy(1) Current Year Collections Prior Year Collections Total Collections Current Year Collection % Total Collections % 2016 $6,291,080.67 $6,021,354.55 $877,626.93 $ 6,898,981 95.71% 109.66% 2017 7,242,054.65 7,271,217.04 326,542.63 7,597,760 100.40 104.91 2018 7,667,648.74 7,823,194.34 634,990.49 8,458,185 102.03 110.31 2019 8,515,027.27 8,147,220.43 338,708.92 8,485,929 95.68 99.66 2020 9,442,929.46 9,628,475.03 504,287.88 10,132,763 101.96% 107.31% _______________________ (1) Original Tax Levy per County Auditor Controller. Source: HdL Coren & Cone. 10.c Packet Pg. 144 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 42 TABLE 6 B SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE COUNTY OF SAN BERNARDINO COMBINED PROJECT AREAS(1) (RPTTF DEPOSITS) Tax Levy and Collections (Fiscal Years 2015-16 to 2019-20) Fiscal Year Original Tax Levy(1) Current Year Collections Current Year Supplemental Revenue Prior Year Collections Total Collections Current Year Collection % Total Collections % 2015-16 $38,538,391.79 $36,724,285.49 $1,367,839.23 $1,601,685.12 $39,693,809.84 95.29% 103.00% 2016-17 39,853,184.86 39,830,201.17 1,451,208.49 1,304,850.69 42,586,260.35 99.94 106.86 2017-18 42,004,281.28 41,483,805.98 1,328,490.70 867,617.41 43,679,914.09 98.76 103.99 2018-19 44,896,051.01 44,341,902.28 1,641,211.42 294,471.80 46,277,585.50 98.77 103.08 2019-20 48,823,900.68 48,151,901.87 2,643,834.66 366,189.77 51,161,926.30 98.62 104.79 _______________________ (1) Includes the Northwest Project Area. Source: HdL Coren & Cone. 10.c Packet Pg. 145 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency 43 Assessment Appeals Property taxable values determined by the County Assessor may be subject to an appeal by the property owner. There are two basic types of assessment appeals provided for under California law. The first type of appeal, commonly referred to as a base year assessment appeal, involves a dispute on the valuation assigned by the Assessor immediately subsequent to a change in ownership or completion of new construction. If the base year value assigned by the Assessor is reduced, the valuation of the property cannot increase in subsequent years more than 2% annually unless and until another change in ownership and/or additional new construction activity occurs. The second type of appeal, commonly referred to as a Proposition 8 appeal, can result if factors occur causing a decline in the market value of the property to a level below the property’s then current taxable value. Assessment appeals are annually filed with the County Assessment Appeals Board for a hearing and resolution. The resolution of an appeal may result in a reduction to the Assessor’s original taxable value and a tax refund to the property owner. A property owner can file for a regular assessment appeal with the County between July 2 and November 30. Revenue and Taxation Code Section 1604 allows up to two years for an assessment appeal to be decided. Three of the top ten taxpayers within the Project Areas have filed assessment appeals that are currently pending. Additional appeals to assessed values in the Project Areas may be filed from time to time in the future. The Agency cannot predict the extent of these appeals or their likelihood of success. The Fiscal Consultant researched the status of assessment appeals filed by property owners in the Project Areas based upon information available as of April 29, 2021. Current appeals pending in the Northwest Project Area represent real property with a total assessed valuation under appeal of $108,388,293 and $308,587,733 for the Combined Project Areas. Based on the actual valuation reductions allowed by the Appeals Board for property in the Project Areas over the last five years, the amount of the allowed reductions represented approximately 12.3% of the requested valuation reduction amount in the Northwest Project Area and 15.3% of the Combined. Project Areas Based on the current requested valuation reduction amount stated above, it is estimated that the resolution of the current appeals pending could potentially result in a valuation reduction in the Project Areas of approximately $7,717,799 for the Northwest Project Area and $22,377,425 for the Combined Project Areas which could then result in a reduction to the gross tax increment revenue of approximately $__________. In the Northwest Project Area, there is a pending appeal from LIT Industrial LP, a top tax payer for such Project Area. Additionally, for the Combined Project Areas, a top ten tax payer , J.C. Penny Corporation. is pending appeal. See the Fiscal Consultant’s Report attached hereto as Appendix A for additional details. The Fiscal Consultant’s estimates are based upon the historical averages of successful appeals and amounts of value reductions. Actual appeals, reductions and refunds may vary from historical averages. The Fiscal Consultant’s estimated reductions in values due to pending appeals are reflected in its projections. Actual resolution of appeals are determined by a number of factors including vacancy and rental rates, circumstances of hardship and other real estate comparables, all of which are unique to the individual assessment. Therefore, actual reductions, if any, may be higher or lower than the reductions incorporated in the Fiscal Consultant’s estimate. The estimated gross tax increment reduction amounts from pending appeals have not been deducted from the projection of Tax Revenues in this Preliminary Official Statement and the Fiscal Consultant’s Report attached in Appendix A, as the outcome of pending assessment appeals cannot be predicted with certainty. An appeal may be withdrawn by the applicant, the Appeals Board may deny or modify the appeal at hearing or by stipulation, or the final value may be adjusted to an amount other than the stated opinion of value. See Table 3 above, for a summary of historical assessed property valuations in the Project Areas. For more information about appeals and the Fiscal Consultant’s assumptions, see the Fiscal Consultant’s Report attached to this Preliminary Official Statement as Appendix A. 10.c Packet Pg. 146 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 44 TAX REVENUES Tax Revenues are to be deposited in the Redevelopment Obligation Retirement Fund, and thereafter and after transfers have been made by the Agency to the Tax Increment Fund, administered by the Trustee and applied to the payment of the principal of and interest on the Series 2021 Bonds. Projected Tax Revenues The Agency has retained HdL Coren & Cone to provide projections of taxable valuation and Tax Revenues from developments in the Project Areas. The Successor Agency has not projected any impact on Tax revenues due to COVID-19. See “RISK FACTORS – COVID-19.” The Agency believes that the assumptions (set forth in the footnotes to the following tables and in Appendix A) upon which the projections are based are reasonable; however, some assumptions may not materialize and unanticipated events and circumstances may occur. See the caption “RISK FACTORS.” Therefore, the actual Tax Revenues received during the forecast period may vary from the projections and the variations may be material. A summary of the projected total taxable valuation and Tax Revenues for the Northwest Project Area and the Combined Project Areas is set forth in the following tables: The projections set forth in Tables 7A, 7B, 8A and 8B assume no growth in assessed value. For projections which assume assessed value growth at two-percent (2%) in Fiscal Year 2020-21 and thereafter, reflecting projected inflationary increases in assessed value and increases resulting from transfers and development of property in the Project Areas see Appendix A – “FISCAL CONSULTANT’S REPORT”. See also “RISK FACTORS—Reduction in Inflation Rate.” SB 107 provides that the time limits for receiving property tax revenues and the limitation on the amount of property tax revenues that may be received by the Former Agency and the Agency set forth in the Redevelopment Plans are not effective for purposes of paying the Agency’s enforceable obligations. Accordingly, the projections set forth below in this Preliminary Official Statement and in the Fiscal Consultant’s Report attached to this Preliminary Official Statement as Appendix A do not take into account the time and financial limitations set forth in the Redevelopment Plans for the Project Areas. 10.c Packet Pg. 147 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 45 TABLE 7 A SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE COUNTY OF SAN BERNARDINO NORTHWEST PROJECT AREA (PROJECT AREA TAX REVENUES) Projected Tax Revenues Assumes No Value Growth Fiscal Year Ending June 30 Assessed Valuation(1) Incremental Valuation Adjusted Tax Increment Revenue(2) County Administrative Charge(3) Pass Through Payments(4) Senior Obligations Debt Service(5) Tax Revenues(6) Series 2021 Bonds Debt Service(7) Net Tax Revenues(8) 2022 $904,289,856 $869,871,075 $10,089,754 $77,382 $3,588,316 $3,949,692 $2,474,364 $519,413 $1,954,952 2023 904,289,856 869,871,075 10,089,754 77,382 3,588,316 3,943,228 2,480,828 516,546 1,964,282 2024 904,289,856 869,871,075 10,089,754 77,382 3,588,316 3,935,903 2,488,153 517,497 1,970,657 2025 904,289,856 869,871,075 10,089,754 77,382 3,588,316 2,911,873 3,512,183 516,609 2,995,575 2026 904,289,856 869,871,075 10,089,754 77,382 3,588,316 2,908,906 3,515,150 514,959 3,000,191 2027 904,289,856 869,871,075 10,089,754 77,382 3,588,316 0 6,424,056 520,888 5,903,168 2028 904,289,856 869,871,075 10,089,754 77,382 3,588,316 0 6,424,056 520,558 5,903,499 2029 904,289,856 869,871,075 10,089,754 77,382 3,588,316 0 6,424,056 518,282 5,905,775 2030 904,289,856 869,871,075 10,089,754 77,382 3,588,316 0 6,424,056 0 6,424,056 (1) Taxable values as reported by the County. Real property consists of land and improvements. Secured and personal property assessed values are not increased for inflation. (2) Based on incremental values factored against the general levy tax rate of $1.00 per $100 taxable value and includes revenue g enerated by San Bernardino Valley Municipal Water District debt service override tax rate and Unitary revenue. (3) Includes County SB 2557 charges and County Collection Charges. SB2557 charges are 0.55% of gross tax increment revenue. County Collection Charges are 0.25% of gross tax increment revenue. (4) Pass through payments include statutory tax sharing obligations and negotiated tax sharing amounts to the County and to the F lood Control District. (5) Represents Fiscal Year in which gross tax revenues are received to pay debt service on the Senior Obligations of the Northwest Project Area. (6) Adjusted Gross Tax Revenue less County Administrative Charge, Pass Through Payments and debt services payable on Senior Obligations. (7) Estimated. Represents Fiscal Year in which Tax Revenues are received for payment of debt service on the Series 2021 Bonds only. (8) Tax Revenues net of 2021 Bond Debt Service. Source: HdL Coren & Cone. 10.c Packet Pg. 148 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency 46 TABLE 7B SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE COUNTY OF SAN BERNARDINO COMBINED PROJECT AREAS(1) (RPTTF DEPOSITS) Projected Tax Revenues Assumes No Value Growth Fiscal Year Ending June 30 Assessed Valuation(2) Incremental Valuation Adjusted Tax Increment Revenue(3) County Administrative Charge(4) Pass Through Payments(5) Tax Revenues(6) Combined Bond Debt Service(7) Net Tax Revenues(8) 2022 $4,820,523,893 $4,417,534,564 $51,989,953 $398,961 $10,810,275 $40,780,717 $9,414,573 $31,366,144 2023 4,820,523,893 4,417,534,564 51,989,953 398,961 10,810,275 40,780,717 9,400,074 31,380,643 2024 4,820,523,893 4,417,534,564 51,989,953 398,961 10,810,275 40,780,717 9,456,763 31,323,954 2025 4,820,523,893 4,417,534,564 51,989,953 398,961 10,810,275 40,780,717 8,666,238 32,114,479 2026 4,820,523,893 4,417,534,564 51,989,953 398,961 10,810,275 40,780,717 6,338,853 34,441,864 2027 4,820,523,893 4,417,534,564 51,989,953 398,961 10,810,275 40,780,717 1,452,188 39,328,529 2028 4,820,523,893 4,417,534,564 51,989,953 398,961 10,810,275 40,780,717 701,308 40,079,409 2029 4,820,523,893 4,417,534,564 51,989,953 398,961 10,810,275 40,780,717 697,032 40,083,685 2030 4,820,523,893 4,417,534,564 51,989,953 398,961 10,810,275 40,780,717 181,500 40,599,217 (1) Includes Northwest Project Area. (2) Taxable values as reported by the County. Real property consists of land and improvements. Secured and personal property assessed values are not increased for inflatio n. (3) Based on incremental values factored against the general levy tax rate of $1.00 per $100 taxable value and includes revenue generated by San Bernardino Valley Municipal Water District debt service override tax rate and unitary revenue. (4) Includes County SB 2557 charges and County Collection Charges. SB2557 charges are 0.55% of Gross Tax Increment Revenue. Count y Collection Charges are 0.25% of Gross Tax Increment Revenue. (5) Pass through payments include statutory tax sharing obligations and negotiated tax sharing amounts. (6) Gross Tax Revenue less County Administrative Charge and Pass Through Payments. (7) Estimated. Represents Fiscal Year in which Tax Revenues are collected to pay debt service on the Series 2016 Bonds and the Series 2021 B onds. (8) Tax Revenues net of County Administrative Charge, Pass Through Payments and Combined Bond Debt Service. Source: HdL Coren & Cone. 10.c Packet Pg. 149 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency 47 TABLE 8 A SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO NORTHWEST PROJECT AREA (PROJECT AREA TAX REVENUES) Adjusted Gross Tax Increment Revenue Components Assumes No Value Growth Fiscal Year Ending June 30 Tax Revenues Based on 1% of Incremental Valuation Override Tax Revenues(1) Unitary Tax Revenues(2) Adjusted Gross Tax Revenues(3) 2022 $8,698,711 $1,239,566 $151,477 $10,089,754 2023 8,698,711 1,239,566 151,477 10,089,754 2024 8,698,711 1,239,566 151,477 10,089,754 2025 8,698,711 1,239,566 151,477 10,089,754 2026 8,698,711 1,239,566 151,477 10,089,754 2027 8,698,711 1,239,566 151,477 10,089,754 2028 8,698,711 1,239,566 151,477 10,089,754 2029 8,698,711 1,239,566 151,477 10,089,754 2030 8,698,711 1,239,566 151,477 10,089,754 (1) Revenue from San Bernardino Valley Municipal Water District tax override tax rate pledged for payment of debt service on bonds as necessary. These revenues will be released to San Bernardino Valley Municipal Water District if not required to make bond debt service payments. (2) Unitary Revenue allocated annually to Agency for Project Area. (3) Projected Adjusted Gross Tax Increment Revenue is based on incremental values factored against general tax levy of $1.00 per $100 of taxable value and includes revenue generated by debt service tax overrides pledged to payment of debt service and unitary revenues. Source: HdL Coren & Cone. 10.c Packet Pg. 150 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 48 TABLE 8B SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMBINED PROJECT AREAS(1) (RPTTF DEPOSITS) Adjusted Gross Tax Increment Revenue Components Assumes No Value Growth Fiscal Year Ending June 30 Tax Revenues Based on 1% of Incremental Revenues Override Tax Revenues(2) Unitary Tax Revenues(3) Adjusted Gross Tax Revenues(4) 2021 $44,175,346 $6,294,987 $1,519,620 $51,989,953 2022 44,175,346 6,294,987 1,519,620 51,989,953 2023 44,175,346 6,294,987 1,519,620 51,989,953 2024 44,175,346 6,294,987 1,519,620 51,989,953 2025 44,175,346 6,294,987 1,519,620 51,989,953 2026 44,175,346 6,294,987 1,519,620 51,989,953 2027 44,175,346 6,294,987 1,519,620 51,989,953 2028 44,175,346 6,294,987 1,519,620 51,989,953 2029 44,175,346 6,294,987 1,519,620 51,989,953 2030 44,175,346 6,294,987 1,519,620 51,989,953 (1) Includes the Northwest Project Area. (2) Revenue from San Bernardino Valley Municipal Water District tax override tax rate pledged for payment of debt service on bonds as necessary. These revenues will be released to San Bernardino Valley Municipal Water District if not required to make bond debt service payments. (3) Unitary Revenue allocated annually to Agency for Combined Project Areas. (4) Projected Adjusted Gross Tax Increment Revenue is based on incremental values factored against general tax levy of $1.00 per $100 of taxable value and includes revenue generated by debt service tax overrides pledged to payment of debt service and unitary revenues. Source: HdL Coren & Cone. 10.c Packet Pg. 151 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 49 Debt Service Coverage Set forth below is the estimated debt service coverage for the Series 2021 Bonds using actual Fiscal Year 2020-21 Tax Revenues assuming no growth in tax increment revenues in Fiscal Year 2021-22 and thereafter, through maturity of the Series 2021 Bonds for the Northwest Project Area and Combined Project Areas. TABLE 9 A SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE COUNTY OF SAN BERNARDINO NORTHWEST PROJECT AREA (PROJECT AREA TAX REVENUES) Estimated All-In Debt Service Coverage Assumes No Value Growth Fiscal Year Ending June 30 Tax Revenues(1) Debt Service on Series 2021 Bonds(2) Net Tax Revenues(3) Debt Service Coverage(4) 2022 $2,474,364 $519,413 $1,954,952 4.76x 2023 2,474,364 516,546 1,957,818 4.79 2024 2,474,364 517,497 1,956,868 4.78 2025 2,474,364 516,609 1,957,756 4.79 2026 2,474,364 514,959 1,959,405 4.80 2027 2,474,364 520,888 1,953,476 4.75 2028 2,474,364 520,558 1,953,807 4.75 2029 2,474,364 518,282 1,956,083 4.77 2030 2,474,364 0 2,474,364 (1) See Table 7A. (2) Preliminary, subject to change. Represents Fiscal Year in which Tax Revenues are collected to pay debt service on Series 2021 Bonds. (3) Preliminary, subject to change. Tax Revenue remaining after payment of debt service on Series 2021 Bonds. (4) Preliminary, subject to change. Source: HdL Coren & Cone. 10.c Packet Pg. 152 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 50 TABLE 9B SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE COUNTY OF SAN BERNARDINO COMBINED PROJECT AREAS(1) (RPTTF DEPOSITS) Estimated All-In Debt Service Coverage Assumes No Value Growth Fiscal Year Ending June 30 Tax Revenues(2) Debt Service on Outstanding Obligations(3) Debt Service on Series 2021 Bonds(4) Net Tax Revenues(5) All-In Debt Service Coverage(6) 2021 $40,780,717 $16,425,479 $ 0 $16,425,479 2.48x 2022 40,780,717 8,895,160 519,413 9,414,573 4.33 2023 40,780,717 8,883,528 516,546 9,400,074 4.34 2024 40,780,717 8,939,266 517,497 9,456,763 4.31 2025 40,780,717 8,149,629 516,609 8,666,238 4.71 2026 40,780,717 5,823,894 514,959 6,338,853 6.43 2027 40,780,717 931,300 520,888 1,452,188 28.08 2028 40,780,717 180,750 520,558 701,308 58.15 2029 40,780,717 178,750 518,282 697,032 58.51 2030 40,780,717 181,500 0 181,500 224.69 (1) Includes Northwest Project Area. (2) See Table 7B. (3) Reflects Fiscal Year in which Tax Revenues are collected for payment of debt service on existing bonds including Fiscal Year 2020-21 debt service on Refunded Obligations. (4) Preliminary, subject to change. Reflects Fiscal Year in which Tax Revenues are collected for payment of debt service on Series 2021 Bonds. (5) Preliminary, subject to change. Reflects sum of debt service on existing bonds and debt service on the Series 2021 Bonds. (6) Preliminary, subject to change. Source: HdL Coren & Cone. 10.c Packet Pg. 153 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 51 RISK FACTORS The following information should be considered by prospective investors in evaluating the Series 2021 Bonds. However, the following does not purport to be an exhaustive listing of risks and other considerations which may be relevant to investing in the Series 2021 Bonds. In addition, the order in which the following information is presented is not intended to reflect the relative importance of any such risks. The various legal opinions to be delivered concurrently with the issuance of the Series 2021 Bonds will be qualified as to the enforceability of the various legal instruments by limitations imposed by State and federal laws, rulings and decisions affecting remedies, and by bankruptcy, reorganization or other laws of general application affecting the enforcement of creditors’ rights, and the application of equitable principles. Reduction in Taxable Value Tax Revenues allocated to the Redevelopment Property Tax Trust Fund are determined by the amount of incremental taxable value in the Project Areas and t he current rate or rates at which property in the Project Areas is taxed. The reduction of taxable values of property in the Project Areas caused by economic factors beyond the Agency’s control, such as relocation out of the Project Areas by one or more major tenants, sale of property to a government entity or non-profit corporation exempt from property taxation or the complete or partial destruction of such property caused by, among other eventualities, earthquake or other natural disaster, could cause a reduction in the Tax Revenues that provide for the repayment of and secure the Series 2021 Bonds. Such reduction in Tax Revenues could have an adverse effect on the Agency’s ability to make timely payments of principal of and interest on the Series 2021 Bonds. As described in greater detail under the caption “PROPERTY TAXATION IN CALIFORNIA – Article XIIIA of the State Constitution,” Article XIIIA provides that the full cash value base of real property used in determining taxable value may be adjusted from year to year to reflect the inflation rate, not to exceed a 2% increase for any given year, or may be reduced to reflect a reduction in the consumer price index, comparable local data or any reduction in the event of declining property value caused by damage, destruction or other factors (as described above). Such measure is computed on a calendar year basis. Any resulting reduction in the full cash value base over the term of the Series 2021 Bonds could reduce Tax Revenues securing the Series 2021 Bonds. In addition to the other limitations on and required application under the Dissolution Act of Tax Revenues on deposit in the Redevelopment Property Tax Trust Fund, as described in this Preliminary Official Statement, the State electorate or Legislature could adopt a constitutional or legislative property tax reduction with the effect of reducing Tax Revenues allocated to the Redevelopment Property Tax Trust Fund and available to the Agency. For example, the Dissolution Act authorizes counties to pay county administrative fees incurred to administer the Dissolution Act prior to depositing any moneys in the Redevelopment Property Tax Trust Fund for distribution to successor agencies, although such moneys may previously have been pledged to bondholders. Although the federal and State Constitutions include clauses generally prohibiting the Legislature’s impairment of contracts, there are also recognized exceptions to these prohibitions. There is no assurance that the State electorate or Legislature will not at some future time approve additional limitations that could reduce the Tax Revenues and adversely affect the source of repayment and security of the Series 2021 Bonds. Also, see the caption “—Challenges to Dissolution Act” below. Risks to Real Estate Market The Agency’s ability to make payments on the Series 2021 Bonds is dependent upon the economic strength of the Project Areas. The general economy of the Project Areas is subject to all of the risks generally associated with urban real estate markets. Real estate prices and development may be adversely affected by changes in general economic conditions, fluctuations in the real estate market and interest rates, unexpected increases in development costs, the supply of or demand for competitive properties in such area, the market 10.c Packet Pg. 154 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 52 value of property in the event of sale or foreclosure and other similar factors. Furthermore, real estate development within the Project Areas could be adversely affected by limitations of infrastructure or future governmental policies, including governmental policies to restrict or control development, changes in real estate tax rates and other operating expenses, zoning laws and laws relating to threatened and endangered species and hazardous materials and fiscal policies, as well as natural disasters (including, without limitation, earthquakes, wildfires and floods), which may result in uninsured losses. In addition, if there is a decline in the general economy of the Project Areas, the owners of property within the Project Areas may be less able or less willing to make timely payments of property taxes or may petition for reduced assessed valuation causing a delay or interruption in the receipt of Tax Revenues by the Agency from the Project Areas. Because assessed values do not necessarily indicate fair market values, the declines in fair market values in recent years may have been even greater than the declines in assessed valuations, although it is also possible that market values could be greater than assessed valuations at any given time. No assurance can be given that the individual parcel owners will pay property taxes in the future or that they will be able to pay such taxes on a timely basis. See the caption “—Bankruptcy and Foreclosure” for a discussion of certain limitations on the City’s ability to pursue judicial proceedings with respect to delinquent parcels. Reduction in Inflation Rate As described in greater detail above, Article XIIIA of the State Constitution provides that the full cash value of real property used in determining taxable value may be adjusted from year to year to reflect the rate of inflation, not to exceed a 2% increase for any given year, or may be reduced to reflect a reduction in the consumer price index or comparable local data. Such measure is computed on a calendar year basis. Because Article XIIIA limits inflationary assessed value adjustments to the lesser of t he actual inflationary rate or 2%, there have been years in which the assessed values were adjusted by actual inflationary rates, which were less than 2%. The State Board of Equalization directed county assessors to use 2.000%, 2.000% and 1.036%, respectively as the inflation factor for purposes of preparing the 2019-20, 2020-21 and 2021-22 tax rolls The Agency is unable to predict if any adjustments to the full cash value of real property within the Project Areas, whether an increase or a reduction, will be realized in the future. Levy and Collection of Taxes The Agency has no independent power to levy or collect property taxes. Any reduction in the tax rate or the implementation of any constitutional or legislative property tax decrease could reduce the Tax Revenues, and accordingly, could have an adverse impact on the security for and the ability of the Agency to repay the Series 2021 Bonds. Likewise, delinquencies in the payment of property taxes by the owners of land in the Project Areas, and the impact of bankruptcy proceedings on the ability of taxing agencies to collect property taxes, could have an adverse effect on the Agency’s ability to make timely payments on the Series 2021 Bonds. As discussed under the caption “PROPERTY TAXATION IN CALIFORNIA – Property Tax Collection and Distribution Procedures – Delinquencies,” the County does not apply the Teeter Plan to the Agency. Therefore, delinquencies in the payment of property taxes could have an adverse effect on the Agency’s ability to pay the principal of and interest on the Series 2021 Bonds. See “THE PROJECT AREAS – Levy and Collection.” State Budget Issues AB X1 26 and AB 1484 were enacted by the State Legislature and Governor as trailer bills necessary to implement provisions of the State’s budget acts for its Fiscal Years 2011-12 and 2012-13, respectively, as efforts to address structural deficits in the State general fund budget. In general terms, these bills implemented a framework to transfer cash assets previously held by redevelopment agencies to cities, counties, and special 10.c Packet Pg. 155 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 53 districts to fund core public services, with assets transferred to schools offsetting State general fund costs (then projected savings of $1.5 billion). SB 107, which makes extensive amendments to the Dissolution Act, was enacted following the adoption of the Fiscal Year 2015-16 Budget, after having initially been presented as AB 113, a trailer bill to the Fiscal Year 2015-16 Budget. SB 107 changes the process for submitting Recognized Obligation Payment Schedules from a six-month to an annual process, authorizes successor agencies to submit and obtain DOF approval of a Last and Final ROPS to govern all remaining payment obligations of the successor agency, alters the provisions governing the distribution of Redevelopment Property Tax Trust Fund moneys attributable to pension and State Water Project tax rate overrides, and eliminates the impact of financial and time limitations in redevelopment plans for purposes of paying enforceable obligations, among other changes to the Dissolution Act. These statutory amendments impact the manner in which successor agencies claim Redevelopment Property Tax Trust Fund moneys for enforceable obligations and, for some successor agencies, impact the amount of Redevelopment Property Tax Trust Fund moneys that will be available for payment of the successor agency’s enforceable obligations. There can be no assurance that additional legislation will not be enacted in the future to additionally implement provisions relating to the State budget or otherwise that may affect successor agencies or tax increment revenues, including Tax Revenues. Information about the State budget and State spending is available at various State maintained websites. Text of the Fiscal Year 2021-22 Budget and other documents related to the State budget may be found at the website of the State Department of Finance, www.dof.ca.gov. A nonpartisan analysis of the budget is posted by the Legislative Analyst’s Office at www.lao.ca.gov. In addition, various State official statements, many of which contain a summary of the current and past State budgets, may be found at the website of the State Treasurer, www.treasurer.ca.gov. None of the websites or webpages referenced above is in any way incorporated into this Preliminary Official Statement. They are cited for informational purposes only. The Agency makes no representation whatsoever as to the accuracy or completeness of any of the information on such websites. Recognized Obligation Payment Schedule The Dissolution Act provides that, commencing on the date that the first Recognized Obligation Payment Schedule is valid thereunder, only those obligations listed in the Recognized Obligation Payment Schedule may be paid by the Agency from the funds specified in the Recognized Obligation Payment Schedule. Before each June 1 property tax distribution date, with respect to each fiscal year, the Dissolution Act requires successor agencies to prepare and approve, and submit to the successor agency’s oversight board and the DOF for approval, a Recognized Obligation Payment Schedule pursuant to which enforceable obligations (as described under the caption “SECURITY FOR THE SERIES 2021 BONDS – Recognized Obligation Payment Schedule”) of the successor agency are listed, together with the source of funds to be used to pay for each enforceable obligation. Tax Revenues will not be distributed from the Redevelopment Property Tax Trust Fund by the County Auditor-Controller to the Agency’s Redevelopment Obligation Retirement Fund without a duly approved and effective Recognized Obligation Payment Schedule obtained in sufficient time prior to each June 1 property tax distribution date. See the caption “SECURITY FOR THE SERIES 2021 BONDS – Recognized Obligation Payment Schedule” and “PROPERTY TAXATION IN CALIFORNIA – Property Tax Collection and Distribution Procedures – Recognized Obligation Payment Schedule.” In the event that the Agency were to fail to file a Recognized Obligation Payment Schedule with respect to a fiscal year, the availability of Tax Revenues to the Agency could be adversely affected for such period. In the event that a successor agency fails to submit to the DOF an oversight board-approved Recognized Obligation Payment Schedule complying with the provisions of the Dissolution Act within five business days of the date upon which the Recognized Obligation Payment Schedule is to be used to determine the amount of 10.c Packet Pg. 156 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 54 property tax allocations, the DOF may determine if any amount should be withheld by the applicable county auditor-controller for payments for enforceable obligations from distribution to taxing entities pursuant to clause (iv) below, pending approval of a Recognized Obligation Payment Schedule. Upon notice provided by the DOF to the county auditor-controller of an amount to be withheld from allocations to taxing entities, the county auditor-controller must distribute to taxing entities any moneys in the Redevelopment Property Tax Trust Fund in excess of the withholding amount set forth in the notice, and the county auditor -controller must distribute withheld funds to the successor agency only in accordance with a Recognized Obligation Payment Schedule when and as approved by the DOF. Typically, under the Redevelopment Property Tax Trust Fund distribution provisions of the Dissolution Act, the county auditor-controller is to distribute funds on each January 2 and June 1 (adjusted for weekends and holidays) in the following order specified in Section 34183 of the Dissolution Act: (i) First, to each local agency and school entity, to the extent applicable, amounts required for pass-through payments that such entity would have received under provisions of the Redevelopment Law, as those provisions read on January 1, 2011, including pursuant to the Pass-Through Agreements and Statutory Pass-Through Amounts. Pension or State Water Project override revenues that are not pledged to or not needed for debt service on Agency debt will be allocated and paid to the entity that levies the override; (ii) Second, to the Agency for payments listed in its Recognized Obligation Payment Schedule; (iii) Third, to the Agency for the administrative cost allowance, as defined in the Dissolution Act; and (iv) Fourth, the remainder is distributed to the taxing entities in an amount proportionate to such taxing entity’s share of property tax revenues in the tax rate area in such Fiscal Year (without adjustment for pass-through obligations). If the Agency does not submit an Oversight Board-approved Recognized Obligation Payment Schedule within five business days of the date upon which the Recognized Obligation Payment Schedule is to be used to determine the amount of property tax allocations and the DOF does not provide a notice to the County Auditor- Controller to withhold funds from distribution to taxing entities, a mounts in the Redevelopment Property Tax Trust Fund for such fiscal year would be distributed to taxing entities pursuant to clause (iv) above. As noted above under the caption “SECURITY FOR THE SERIES 2021 BONDS – Recognized Obligation Payment Schedule,” the Agency has submitted each Oversight Board-approved Recognized Obligation Payment Schedule to DOF on or before the statutory deadline for the past five years. However, the Agency has covenanted in the Indenture to take all actions required under the Dissolution Act to include on its ROPS the amounts described below to be transmitted to the Trustee for the applicable ROPS Period in order to satisfy the requirements of the Indenture, including any amounts required to pay principal and interest payments due on the Senior Obligations, Outstanding Bonds and any Parity Debt, any Compliance Costs, any deficiency in the Reserve Account to the full amount of the Reserve Account Requirement and any deficiency in the reserve accounts under the indentures for the Senior Obligations. The Agency further covenants in the Indenture to submit an Oversight Board-approved ROPS to the County Auditor-Controller and the Department of Finance (with a copy to the Agency) on or before each February 1 with respect to the ROPS Peri od commencing the following July 1. Further, the Agency covenants to include expected Compliance Costs, if any, in each ROPS in accordance with the Dissolution Act. The Agency covenants in the Indenture that, in preparing a given ROPS, the Agency shall ref lect on each annual ROPS that the amount due to the Trustee from the Agency, received in trust from the County Auditor-Controller, for deposit in the Tax Increment Fund on June 1 (commencing June 1, 2022) of the then- current calendar year from Tax Revenues required to be deposited into the Redevelopment Property Tax Trust Fund shall equal (1) the sum of (a) all scheduled principal payments and Sinking Account Installments due and payable on the Outstanding Bonds and any Parity Debt during the next succeeding Fiscal Year as shown in the 10.c Packet Pg. 157 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 55 Indenture, and (b) all scheduled interest payments due and payable on the Outstanding Bonds and any Parity Debt during the next succeeding Fiscal Year as shown in the Indenture, plus (2) the amount of any deficiency in the Reserve Account, less (3) the amounts, if any, on deposit in the Tax Increment Fund as of the date of submission for the ROPS pursuant to the Indenture that are in excess of the amounts required to be applied to payment of principal of or interest or sinking account payments on the Outstanding Bonds and any Parity Debt in the then current Fiscal Year. The amount due to the Trustee from the Agency, received in trust from the County Auditor-Controller, for deposit in the Tax Increment Fund on January 2 of the next calendar year from amounts required to be deposited into the Redevelopment Property Tax Trust Fund shall be equal to the remainder, if any, due and payable on the Outstanding Bonds and any Parity Debt during such next succeeding Fiscal Year in an amount equal to not less than (1) the remaining sum of (a) all scheduled principal payments and Sinking Account Installments due and payable on the Outstanding Bonds and any Parity Debt during such next succeeding Fiscal Year as shown in the Indenture, and (b) all scheduled interest payments due and payable on the Outstanding Bonds and any Parity Debt during such next succeeding Fiscal Year as shown in the Indenture, plus (2) the amount of any remaining deficiency in the Reserve Account. See Appendix B. AB 1484 also added new provisions to the Dissolution Act implementing certain penalties in the event that the Agency does not timely submit a Recognized Obligation Payment Schedule by the deadline specified in the Dissolution Act. Specifically, a Recognized Obligation Payment Schedule must be submitted by the Agency, after approval by the Oversight Board, to the County Administrative Officer, the County Auditor -Controller, the DOF and the State Controller no later than each February 1, commencing February 1, 2016 with respect to each subsequent fiscal year. If the Agency does not submit an Oversight Board -approved Recognized Obligation Payment Schedule by such deadline, the City will be subject to a civil penalty equal to $10,000 per day for every day the schedule is not submitted to the DOF. Additionally, the Agency’s administrative cost allowance is reduced by 25% for any fiscal year for which the Agency does not submit an Oversight Board -approved Recognized Obligation Payment Schedule within 10 days of the February 1 deadline. If the Agency fails to submit a Recognized Obligation Payment Schedule by the February 1 deadline, any creditor of the successor agency or the DOF or any affected taxing entity shall have standing to, and may request a writ of mandate to, require the Agency to immediately perform this duty. For additional information regarding procedures under the Dissolution Act relating to late Recognized Obligation Payment Schedules and implications thereof for the Bonds, see the caption “SECURITY FOR THE BONDS – Recognized Obligation Payment Schedule.” Last and Final Recognized Obligation Payment Schedule SB 107 amended the Dissolution Act to permit certain successor agencies with limited remaining obligations to submit a Last and Final ROPS for approval by the Oversight Board and DOF. The Last and Final ROPS must list the remaining enforceable obligations of the successor agency, including the total outstanding obligation amount and a schedule of remaining payments for each enforceable obligation. The Last a nd Final ROPS will also establish the maximum amount of Redevelopment Property Tax Trust Funds to be distributed to the successor agency for each remaining fiscal year until all obligations have been fully paid. Any revenues, interest, and earnings of the successor agency, including proceeds from the disposition of real property, that are not authorized for use pursuant to the approved Last and Final ROPS will be remitted to the County Auditor-Controller for distribution to the affected taxing entities. A successor agency will not expend more than the amount approved for each enforceable obligation listed on the approved Last and Final ROPS and once the successor agency has received Redevelopment Property Tax Trust Fund moneys equal to the amount of the total outstanding obligations approved in the Last and Final ROPS, the County Auditor - Controller will not allocate further Redevelopment Property Tax Trust Fund moneys to the successor agency. Successor agencies may only amend an approved Last and Final ROPS twice. If the Agency prepares and obtains DOF approval of a Last and Final ROPS and subsequently amends the Last and Final ROPS two times, the Agency may be unable to make unexpected or unscheduled reserve deposits or payments due to the 2021 Insurer or other Insurers of Bonds or other Additional Bonds. See the caption “SECURITY FOR THE BONDS – Last and Final Recognized Obligation Payment Schedule” for a discussion of the requirements for a 10.c Packet Pg. 158 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 56 Last and Final Recognized Obligation Payment Schedule and the mechanics for allocation of Redevelopment Property Tax Trust Fund moneys pursuant to an approved Last and Final Recognized Obligation Payment Schedule. The Agency plans to submit a Last and Final ROPS in the near future. [The Agency covenants in the Indenture that it will not submit for approval by the Oversight Board or the DOF the final amendment permitted for its Last and Final ROPS as provided in the Dissolution Law without the prior consent of the 2021 Insurer unless all amounts that could become due to the 2021 Insurer are included as a line item on the Last and Final Recognized Obligation Payment Schedule.] Challenges to Dissolution Act Several successor agencies, cities and other entities have filed judicial actions challenging the legality of various provisions of the Dissolution Act. One such challenge is an action filed on August 1, 2012, by Syncora Guarantee Inc. and Syncora Capital Assurance Inc. (collectively, “Syncora”) against the State, the State Controller, the State Director of Finance, and the Auditor-Controller of San Bernardino County on his own behalf and as the representative of all other County Auditors in the State (Superior Court of the State of California, County of Sacramento, Case No. 34-2012-80001215). Syncora are monoline financial guaranty insurers domiciled in the State of New York, and as such, provide credit enhancement on bonds issued by state and local governments and do not sell other kinds of insurance such as life, health, or property insurance. Syncora provided bond insurance and other related insurance policies for bonds issued by former California redevelopment agencies. The complaint alleged that the Dissolution Act, and specifically the “Redistribution Provisions” thereof (i.e., California Health and Safety Code Sections 34172(d), 34174, 34177(d), 34183(a)(4), and 34188) violate the “contract clauses” of the United States and California Constitutions (U.S. Const. art. 1, § 10, cl.1; Cal. Const. art. 1, § 9) because they unconstitutionally impair the contracts among the former redevelopment agencies, bondholders and Syncora. The complaint also alleged that the Redistribution Provisions violate the “Takings Clauses” of the United States and California Constitutions (U.S. Const. amend. V; Cal Const. art. 1 § 19) because they unconstitutionally take and appropriate bondholders’ and Syncora’s contractual right to critical security mechanisms without just compensation. After hearing by the Sacramento County Superior Court on May 3, 2013, the Superior Court ruled that Syncora’s constitutional claims based on contractual impairment were premature. The Superior Court also held that Syncora’s takings claims, to the extent based on the same arguments, were also premature. Pursuant to a Judgment stipulated to by the parties, the Superior Court on October 3, 2013, entered its order dismissing the action. The Judgment, however, provides that Syncora preserves its rights to reassert its challenges to the Dissolution Act in the future. The Successor Agency does not guarantee that any reassertion of challenges by Syncora or that the final results of any of the judicial actions brought by others challenging the Dissolution Act will not result in an outcome that may have a material adverse effect on the Successor Agency’s ability to timely pay debt service on the Series 2021 Bonds. Mandatory Redemption on Acceleration of Series 2021 Bonds on Default The Series 2021 Bonds are subject to mandatory redemption upon the acceleration of the Series 2021 Bonds upon the occurrence of an Event of Default under the Indenture. As a practical matter in the event of a payment default by the Successor Agency, it is unlikely the Successor Agency would have the financial resources to meet accelerated obligations. No real or personal property in the Project Areas are pledged to secure the Series 2021 Bonds, and it is not anticipated that the Successor Agency will have available moneys sufficient to pay the amount of principal and interest due upon acceleration of the Series 2021 Bonds, and correspondingly to redeem all of the Series 2021 Bonds in the event of a default. [Additionally, the Insurer will retain the right to control remedies on the Series 2021 Bonds in the Event of Default, possibly in conflict with 10.c Packet Pg. 159 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 57 the Owners of the Bonds.] See “SECURITY FOR THE SERIES 2021 BONDS – Security of Bonds; Equal Security,” herein. Reduction in Taxable Value Tax Revenues allocated to the Successor Agency are determined by the amount of incremental taxable value in the applicable Project Area allocable to such Project Area and the current rate or rates at which property in such Project Area is taxed. The reduction of taxable values of property caused by economic factors beyond the Successor Agency’s control, such as a relocation out of the Project Area by one or more major property owners, or the transfer, pursuant to California Revenue and Taxation Code Section 68, of a lower assessed valuation to property within the Project Area by a person displaced by eminent domain or similar proceedings, appeals to value under Proposition 8 or other assessment appeals, or the discovery of hazard ous substances on a property within the Project Area (see “Hazardous Substances,” below) or the complete or partial destruction of such property caused by, among other eventualities, an earthquake (see “Seismic Considerations and Natural Calamities,” below), flood or other natural disaster, could cause a reduction in the Tax Revenues securing the Series 2021 Bonds. Property owners may also appeal to the County Assessor for a reduction of their assessed valuations or the County Assessor could order a blanket reduction in assessed valuations based on then current economic conditions. The Fiscal Consultant has not reduced projections of Tax Revenues based upon appeals in each of the Project Areas. See APPENDIX A “FISCAL CONSULTANT’S REPORT – Assessment Appeals.” Risks of Real Estate Secured Investments Generally The Owners and Beneficial Owners of the Bonds will be subject to the risks generally incident to an investment secured by real estate, including, without limitation, (a) adverse changes in local market conditions, such as changes in the market value of real property within and in the vicinity of the respective project areas, the supply of or demand for competitive properties in such project areas, and the market value of competitive properties in the event of sale or foreclosure, (b) changes in real estate tax rates and other operating expenses, governmental rules (including, without limitation, zoning laws and laws relating to endangered species and hazardous materials) and fiscal policies, and (c) natural disasters (including, without limitation, earthquakes, fires, droughts and floods), which may result in uninsured losses. Reduction in Inflationary Rate and Changes in Legislation As described in greater detail below (see “LIMITATIONS ON TAX REVENUES”), Article XIIIA of the California Constitution provides that the full cash value base of real property used in determining taxable value may be adjusted from year to year to reflect the inflationary rate, not to exceed a 2% increase for any given year, or may be reduced to reflect a reduction in the consumer price index or comparable local data. Such measure is computed on a calendar year basis. Article XIIIA limits inflationary assessed value adjustments to the lesser of the actual inflationary rate or 2% and there have been several years in which taxable values were adjusted by an actual inflationary rate that was less than 2%. The adjusted inflationary rate for Fiscal Year 2020-21 is 2.00%. The Successor Agency is unable to predict whether future annual inflationary adjustments to the taxable value base of real property within the Project Areas will be in the amount of the full 2% permitted under Article XIIIA or will be in an amount less than 2%. Change in Law In addition to the other limitations on Tax Revenues, the California electorate or Legislature could adopt a constitutional or legislative property tax decrease with the effect of reducing Tax Revenues payable to the Successor Agency. There is no assurance that the California electorate or Legislature will not at some future time approve additional limitations that could reduce the Tax Revenues, or Redevelopment Property Tax Trust Fund revenues and adversely affect the security of the Series 2021 Bonds. 10.c Packet Pg. 160 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 58 Secondary Market There can be no guarantee that there will be a secondary market for the Series 2021 Bonds, or, if a secondary market exists, that the Series 2021 Bonds can be sold for any particular price. Occasionally, because of general market conditions or because of adverse history or economic prospects connected with a particular issue, secondary marketing practices in connection with a particular issue are suspended or terminated. Additionally, prices of issues for which a market is being made will depend upon the then prevailing circumstances. Bankruptcy and Foreclosure The payment of the property taxes from which Tax Revenues are derived and the ability of the County to foreclose the lien of a delinquent unpaid tax may be limited by bankruptcy, insolvency or other laws generally affecting creditors’ rights (such as the Soldiers’ and Sailors’ Relief Act of 1940 discussed below) or by the laws of the State relating to judicial foreclosure. In addition, the prosecution of a foreclosure action could be delayed due to crowded local court calendars or delays in the legal process. The various legal opinions to be delivered concurrently with the delivery of the Series 2021 Bonds (including Bond Counsel’s approving legal opinion) will be qualified as to the enforceability of the various legal instruments by bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting creditors’ rights, by the application of equitable principles and by the exercise of judicial discretion in appropriate cases. Although bankruptcy proceedings would not cause the liens to become extinguished, bankruptcy of a property owner could result in a delay in prosecuting superior court foreclosure proceedings because federal bankruptcy laws may provide for an automatic stay of foreclosure and sale of tax sale proceedings. Such delay would increase the possibility of delinquent tax installments not being paid in full and thereby increase the likelihood of a delay or default in payment of the principal of and interest on the Series 2021 Bonds. Moreover, if the value of the subject property is less than the lien of property taxes, such excess could be treated as an unsecured claim by the bankruptcy court. Further, should remedies be exercised under the federal bankruptcy laws, payment of property taxes may be subordinated to bankruptcy law priorities. Thus, certain claims may have priority over property taxes in a bankruptcy proceeding even though they would not outside of a bankruptcy proceeding. In addition, the United States Bankruptcy Code might prevent moneys on deposit in the Redevelopment Obligation Retirement Fund from being applied to pay interest on the Series 2021 Bonds and/or to redeem Series 2021 Bonds if bankruptcy proceedings were brought by or against a landowner and if the court found that any of such landowner had an interest in such moneys within the meaning of Section 541(a)(1) of the United States Bankruptcy Code. Other laws generally affecting creditors’ rights or relating to judicial foreclosure may affect the ability to enforce payment of property taxes or the timing of enforcement thereof. For example, the Soldiers and Sailors Civil Relief Act of 1940 affords protections such as a stay in enforcement of the foreclosure cove nant, a six- month period after termination of military service to redeem property sold to enforce the collection of a tax or assessment and a limitation on the interest rate on the delinquent tax or assessment to persons in military service if a court concludes that the ability to pay such taxes or assessments is materially affected by reason of such service. As discussed under the caption “PROPERTY TAXATION IN CALIFORNIA – Property Tax Collection and Distribution Procedures – Delinquencies,” the County does not apply the Teeter Plan to the Agency. Therefore, delinquencies in the payment of property taxes could have an adverse effect on the Agency’s ability to pay the principal of and interest on the Series 2021 Bonds. See Table 6 under the caption “THE PROJECT AREAS – Levy and Collection.” 10.c Packet Pg. 161 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 59 COVID-19 The outbreak of COVID-19, a respiratory disease caused by a new strain of coronavirus, has been characterized as a pandemic (the “Pandemic”) by the World Health Organization. On January 31, 2020, the Secretary of the United States Health and Human Services Department declared a public health emergency for the United States and on March 13, 2020, the President of the United States declared the outbreak of COVID -19 in the United States a national emergency. Subsequently, the President’s Coronavirus Guidelines for America and the United States Centers for Disease Control and Prevention called upon Americans to take actions to slow the spread of COVID-19 in the United States. On March 4, 2020, the Governor proclaimed a state of emergency in California as a result of the threat of COVID-19. Under the California Emergency Services Act, during a state of emergency, the Governor has authority over all agencies of the state government and can exercise the State’s police power s. His powers also include the power to promulgate, issue, and enforce orders and regulations as he deems necessary. Since declaring the emergency, the Governor has issued a number of executive orders relating to COVID-19 preparedness and mitigation. These include his March 19, 2020 Executive Order N-33-20, which ordered all individuals living in the State of California to stay home or at their place of residence except as needed to maintain continuity of operations of certain critical infrastructure sector s, as described in that order and later designations. The County had issued a similar order (“County Order”) effective for its residents on March 18, 2020. Since that time, gradual reopening first of lower -risk workplaces, public spaces and then other businesses was permitted. However, from time to time, the Governor has directed certain counties, including the County, to roll back the opening of some of the businesses previously permitted. This is may continue if the cases of COVID-19 escalate in the near term, or in the future. The State is monitoring closely the confirmed cases and deaths by county in making its decisions on business and school openings and closings. The City has held, and expects to continue to hold, meetings of its City Council substant ially unhindered by the Pandemic. As permitted under Executive Order N-33-20, certain of the City’s employees may continue to come to work under designated exceptions for critical sectors and some of the City’s employees are teleworking. The City’s business operations were not materially curtailed by employee absences prompted by the stay-home order. The Pandemic has negatively affected travel, commerce, investment values, and financial markets globally, and is widely expected to continue to negatively affect economic output worldwide and within the City. While federal and state governments (including California) have enacted legislation and taken executive actions seeking to mitigate the negative public health and economic impacts of the Pandemic, the Succe ssor Agency offers no assurances that these interventions will have the intended effects. The City continues to monitor the spread of COVID -19 and is working with local, state, and national agencies to address the potential impact of the Pandemic upon the City. To date, the City continues to operate and has not experienced a material interruption in services. While the overall potential impact of the Pandemic on the City cannot be fully quantified at this time, the continued outbreak of COVID-19 could lead to additional or modified public health restrictions and have an adverse effect on the financial condition of property owners in the Project Area and their ability to pay property taxes or the value of property in the Project Area resulting in a reduction in assessed value, and the effect could be material. Prospective investors should assume that the current disruption to the national and global economies could increase over the near term if further outbreaks occur and recovery may be prolonged. Therefore, the associated impacts related to COVID-19 on the tax increment revenues could be materially adverse. Furthermore, it is possible that there may be other outbreaks similar to COVID-19 in the future. Governor Gavin Newsom issued a number of emergency declarations and legislation in response to the COVID-19. On March 4, 2020, Governor Newsom declared a California -wide state of emergency that (among other price controls) automatically caps rent increases. Via two separate orders, Newsom also allowed cities and 10.c Packet Pg. 162 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 60 counties to enact their own tenant protections (Executive Order N-28-20) and to extend those protections through September 30, 2020, if they choose to do so (Executive Order N-71-20). On August 31, 2020 Governor Newsom signed AB 3088, which banned evictions of tenants who can’t pay rent due to COVID hardships until February 1, 2021. If the COVID-19 hardship occurred between September 1, 2020 and January 31, 2021, tenants must pay at least 25% of rent due to avoid eviction. Further, the Governor’s Exec utive Order N-61-20 extended the penalty and interest waiver for unpaid property taxes through May 2021 as described above under the caption “—Factors that May Affect Tax Revenues – Levy and Collection of Taxes.” It is unknown what net impact, if any, the legislation described above or other future legislation, if enacted, would have on the local economy or the property values within the Project Area. Such net impact could be materially adverse. The potential impact of the pandemic on the Successor Agency c annot be quantified at this time. Estimated Revenues In estimating that Tax Revenues will be sufficient to pay debt service on the Series 2021 Bonds, the Agency has made certain assumptions with regard to present and future assessed valuation in the Project Areas, future tax rates and percentage of taxes collected. The Agency believes these assumptions to be reasonable, but there is no assurance that these assumptions will be realized. To the extent that the assessed valuation and the tax rates are less than expected, the Tax Revenues available to pay debt service on the Series 2021 Bonds will be less than those projected and such reduced Tax Revenues may be insufficient to provide for the payment of principal of, premium (if any) and interest on the Series 2021 Bonds. Hazardous Substances While governmental taxes, assessments, and charges are a common claim against the value of a taxable parcel, other less common claims may be relevant. One example is a claim with regard to a hazardous substance. The presence of hazardous substances on a parcel may result in a reduction in the value of a parcel. In general, the owners and operators of a taxable parcel may be required by law to remedy conditions of the parcel relating to releases or threatened releases of hazardous substances. The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, sometimes referred to as “CERCLA” or the “Superfund Act,” is the most well-known and widely applicable of these laws, but State and local laws with regard to hazardous substances are also stringent and similar. Under many of these laws, the owner (or operator) is obligated to remedy a hazardous substance condition of property whether or not the owner (or operator) has anything to do with creating or handling the hazardous substance. The effect, therefore, should any of the taxable parcels be affected by a hazardous substance is to reduce the marketability and value of the parcel by the costs of remedying the condition, because the purchaser, upon becoming owner, will become obligated to remedy the condition just as is the seller. Further, such liabilities may arise not simply from the existence of a hazardous substance but from the method of handling it. All of these possibilities could significantly affect the value of the property that is realizable upon a delinquency and foreclosure. Further, it is possible that liabilities may arise in the future with respect to any of the taxable parcels resulting from the existence, currently, on the parcel of a substance presently classified as hazardous but which has not been released or the release of which is not presently threatened, or may arise in the future resulting from the existence, currently, on the parcel of a substance not presently classified as hazardous but which may in the future be so classified. Further, such liabilities may arise not simply from the existence of a hazardous substance but from the method of handling it. All of these possibilities could significantly affect the value of a taxable parcel that is realizable upon a delinquency. 10.c Packet Pg. 163 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 61 Climate Change According to the California Climate Change Fourth Assessment for the Inland Desert Regions, which was published in 2018, the region covering the City , the region will continue to experience, among other things, (a) extremely high maximum temperatures, (b) increased energy needs for cooling to compensate for a rise in extremely, and (c) increased water stress in an already very water -limited region. Such climate change risks may exacerbate the impact of natural disasters as described below. Natural Disasters The City, like all California communities, may be subject to unpredictable seismic activity, fires, flood, or other natural disasters. Southern California is a seismically active ar ea. Seismic activity, wildfires and other natural disasters represents a potential risk for damage to buildings, roads, bridges and property within the City. Earthquake. The State, including the City, is subject to periodic earthquake activity. In addition, land susceptible to seismic activity may be subject to liquefaction during the occurrence of such event. San Bernardino is surrounded by earthquake faults. According to the Safety Element of the City’s General Plan, the City is located between several active fault zones including: the San Andreas Fault, the San Jacinto Fault, the Glen Helen Fault, and the Loma Linda Fault. If an earthquake were to substantially damage or destroy taxable property within the Project Areas, the assessed valuation of such property would be reduced. Such a reduction of assessed valuations could result in a reduction of the Tax Revenues that secure the Series 2021 Bonds, which in turn could impair the ability of the Agency to make payments of principal of and/or interest on the Series 2021 Bonds when due. Wildfires. The City is susceptible to wildland fires due to the steep terrain and highly flammable chaparral vegetation of the foothills of the San Bernardino Mountains and high winds that correspond with seasonal dry periods. The characteristics of the San Bernardino Mountains and winds in the area result in large uncontrollable fires on a recurring basis. The danger from wildland fires in foothill locations is increased by the number of structures and encroachment of new development in the hillside areas. Specific concerns include the density of development, spacing of structures, brush clearance, building materials, access to buildings by fire equipment, adequacy of evacuation routes, property maintenance, and water availabili ty. The capacity of the water systems to provide sufficient water to fight fires is also a significant issue. Other areas in southern California are burned off periodically by way of controlled burns to remove older vegetation. The controlled burn process is used very carefully in the San Bernardino Mountains because of the unpredictability and force of the winds in the area that could make controlled burns a potential hazard. Wind. According to the Safety Element of the City’s General Plan, the City is subject to extremely high winds, which have resulted in significant property damage. For example, portions of roofs and block walls have been broken and blown away and public utility structures such as power lines and traffic signals have been damaged. The most significant wind problems occur at the canyon mouths and valleys extending downslope from the San Bernardino Mountains. The highest velocities are associated with downslope canyon and Santa Ana winds (90-100 mph). Santa Ana wind conditions are a reversal of the prevailing southwesterly winds and usually occur on a region-wide basis during late summer and early fall. Santa Ana winds are dry, warm winds that flow from the higher desert elevations in the north through the mountain passes and canyons. Of the major fires in the San Bernardino Mountains, all have occurred during periods of high winds. The high wind velocity and property damage potential have resulted in the northern half of the City adjacent to the mountains being classified by the City as a “High Wind Area.” In this area of the City, stringent conditions for the construction of buildings and public facilities are applied. 10.c Packet Pg. 164 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 62 Cybersecurity As a recipient and provider of personal, private and sensitive information, the City faces multiple cyber threats including, but not limited to, hacking, viruses, malware and other attacks on computers and other sensitive digital networks and systems. To date, the City has not experienced a material threat to its computer operating system. However, no assurance can be given that the City’s efforts to manage cyber threats and attacks will be successful in all cases, or that any such attack will not materially impact the operations or finances of the City or the Agency, or the administration of the 2020 Bonds. The Agency is also reliant on other entities and service providers in connection with the administration of the Series 2021 Bonds, including without limitation the County Tax Collector for the levy and collection of Tax Revenues, the Trustee, and the Dissemination Agent. No assurance can be given that the City, the Agency and these other entities will not be affected by cyber threats and attacks in a manner that may affect the Series 2021 Bond owners. Changes in the Law There can be no assurance that the State electorate will not at some future time adopt initiatives or that the State Legislature will not enact legislation that will amend the Dissolution Act, the Redevelopment Law or other laws or the Constitution of the State resulting in a reduction of Tax Revenues, which could have an adverse effect on the Agency’s ability to pay debt service on the Series 2021 Bonds. The Dissolution Act is new and implementation of its provisions have been and will be subject to differing interpretations by different stakeholders, including the DOF, the State Controller, oversight boards, successor agencies, auditor-controllers, and others, and the Dissolution Act could be subject to further legislative action or judicial review. The Agency cannot predict outcomes, or impact, of any such interpretations or reviews, on availability of Tax Revenues to pay the Series 2021 Bonds. Investment Risk Funds held under the Indenture are required to be invested in Permitted Investments as provided under the Indenture. See Appendix B for a summary of the definition of Permitted Investments. The funds and accounts of the Agency, into which a portion of the proceeds of the Series 2021 Bonds will be deposited and into which Tax Revenues are deposited, may be invested by the Agency in any investment authorized by law. All investments, including the Permitted Investments and those authorized by law from time to time for investments by municipalities, contain a certain degree of risk. Such risks include, but are not limited to, a lower rate of return than expected and loss or delayed receipt of principal. Further, the Agency cannot predict the effects on the receipt of Tax Revenues if the County were to suffer significant losses in its portfolio of investments or if the County or the City were to become insolvent or declare bankruptcy. See the caption “—Bankruptcy and Foreclosure.” No Validation Proceeding Undertaken Code of Civil Procedure Section 860 authorizes public agencies to institute a process, otherwise known as a “validation proceeding,” for purposes of determining the validity of a resolution or any action taken pursuant thereto. Section 860 authorizes a public agency to institute validation proceedings in cases where another statute authorizes its use. Relevant to the Series 2021 Bonds, Government Code Section 53511 authorizes a local agency to “bring an action to determine the validity of its bonds, warrants, contracts, obligations or evidences of indebtedness.” Pursuant to Code of Civil Procedure Section 870, a final favorable judgment issued in a validation proceeding shall, notwithstanding any other provision of law, be forever binding and conclusive, as to all matters therein adjudicated or which could have been adjudicated, against all persons: “The judgment shall permanently enjoin the institution by any person of any action or proceeding raising any issue as to which the judgment is binding and conclusive.” 10.c Packet Pg. 165 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 63 The Agency has not undertaken or endeavored to undertake any validation proceeding in connection with the issuance of the Series 2021 Bonds. The Agency and Bond Counsel have relied on the provisions of AB 1484 authorizing the issuance of the Series 2021 Bonds and specifying the related deadline for any challenge to the Series 2021 Bonds to be brought. Specifically, Section 34177.5(e) of the Dissolution Act provides that notwithstanding any other law, an action to challenge the issuance of bonds (such as the Series 2021 Bonds), the incurrence of indebtedness, the amendment of an enforceable obligation, or the execution of a financing agreement authorized under Section 34177.5, must be brought within 30 days after the date on which the oversight board approves the resolution of the successor agency approving such financing. Such challenge period expired with respect to the Series 2021 Bonds and the Oversight Board Resolution on April 5, 2021. It is possible that the definition of Tax Revenues could be affected by changes in law or judicial decisions relating to the dissolution of redevelopment agencies. Any action by a court to invalidate provisions of the Dissolution Act required for the timely payment of principal of, and interest on, the Series 2021 Bonds could be subject to issues regarding unconstitutional impairment of contracts and unconstitutional taking without just compensation. The Agency believes that the aforementioned considerations would provide some protections against the adverse consequences upon the Agency and the availability of Tax Revenues for the payment of debt service on the Series 2021 Bonds in the event of successful challenges to the Dissolution Act or portions thereof. However, the Agency provides no assurance that any other lawsuit challenging the Dissolution Act or portions thereof will not result in an outcome that may have a detrimental effect on the Agency’s ability to timely pay debt service on the Series 2021 Bonds. Bonds Are Limited Obligations Neither the faith and credit nor the taxing power of the Agency (except to the limited extent set forth in the Indenture), the City, the State or any political subdivision thereof is pledged to the payment of the Series 2021 Bonds. The Series 2021 Bonds are special obligations of the Agency; and, except as provided in the Indenture, they are payable solely from Tax Revenues. Tax Revenues could be insufficient to pay debt service on the Series 2021 Bonds as a result of delinquencies in the payment of property taxes or the insufficie ncy of proceeds derived from the sale of land within the Project Areas following a delinquency in the payment of the applicable property taxes. As discussed under the caption “PROPERTY TAXATION IN CALIFORNIA – Property Tax Collection and Distribution Procedures – Delinquencies,” the County does not apply the Teeter Plan to the Agency. Therefore, delinquencies in the payment of property taxes could have an adverse effect on the Agency’s ability to pay the principal of and interest on the Series 2021 Bonds. S ee Tables 6A and 6B under the caption “THE PROJECT AREAS – Levy and Collection.” The Agency has no obligation to pay debt service on the Series 2021 Bonds in the event of insufficient Tax Revenues, except to the extent that money is available for such purpose in the Redevelopment Obligation Retirement Fund, the Tax Increment Fund and the Reserve Account. Bond Insurance [In the event of default of the payment of the scheduled principal of or interest on the Series 2021 Bonds when all or some becomes due, the Trustee on behalf of any owner of the Series 2021 Bonds shall have a claim under the Policy for such payments. The 2021 Insurer may direct and must consent to any remedies with respect to the Series 2021 Bonds and the 2021 Insurer’s consent may be required in connection with amendments to any applicable documents relating to the Series 2021 Bonds. See Appendix B under the heading “MISCELLANEOUS - 2021 Bond Insurance Policy Payment and Reimbursement Provisions.” The 2021 Insurer will have the ability to direct the actions of the Trustee, give consents and waivers and take other actions without regard to the views of the owners of any Series 2021 Bonds. The S&P Global Ratings (“S&P”) long-term ratings on the Series 2021 Bonds are dependent in part on the financial strength of the 2021 Insurer and its claims paying ability. The 2021 Insurer’s financial strength and claims paying ability are predicated upon a number of factors which could change over time. No assurance is 10.c Packet Pg. 166 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 64 given that the S&P long-term ratings of the 2021 Insurer and the ratings on the Series 2021 Bonds will not be subject to downgrade and such event could adversely affect the market price of the Series 2021 Bonds or the marketability (liquidity) for the Series 2021 Bonds. See “CONCLUDING INFORMATION – Ratings” herein. The obligations of the 2021 Insurer are unsecured contractual obligations and in an event of default by the 2021 Insurer, the remedies available may be limited by applicable bankruptcy law or state law related to insolvency of insurance companies. Neither the Agency nor the Underwriter has made independent investigation into the claims paying ability of the 2021 Insurer and no assurance or representation regarding the financial strength or projected financial strength of the 2021 Insurer is given. Thus, when making an investment decision, potential investors should carefully consider the ability of the Agency to make the payments on the Series 2021 Bonds and the claims paying ability of the 2021 Insurer, particularly over the life of the investment. See “BOND INSURANCE” herein for further information regarding the 2021 Insurer and the Policy, which includes further instructions for obtaining current financial information concerning the 2021 Insurer.] Limitations on Remedies Remedies available to the Owners of the Series 2021 Bonds may be limited by a variety of factors and may be inadequate to assure the timely payment of principal of and interest on the Series 2021 Bonds or to preserve the tax-exempt status of the Series 2021 Bonds. Additionally, bondowners or bond insurers on Senior Obligations may have the right to direct remedies in the event of default under the Senior Obligations in ways that might be detrimental to Owners of the Series 2021 Bonds, including acceleration. Bond Counsel has limited its opinion as to the enforceability of the Series 2021 Bonds and of the Indenture to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or other similar laws affecting generally the enforcement of creditors’ rights, by equitable principles and by the exercise of judicial discretion. The lack of availability of certain remedies or the limitation of remedies may entail risks of delay, limitation or modification of the rights of the Owners. Enforceability of the rights and remedies of the Owners of the Series 2021 Bonds, and the obligations incurred by the Agency, may become subject to the United States Bankruptcy Code and applicable bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting the enforcement of creditors ’ rights generally, now or hereafter in effect, equity principles which may limit the specific enforcement under State law of certain remedies, the exercise by the United States of America of the powers delegated to it by the federal Constitution, the reasonable and necessary exercise, in certain exceptional situations, of the police powers inherent in the sovereignty of the State and its governmental bodies in the interest of serving a significant and legitimate public purpose and the limitations on remedies against governmental entities in the State. See the captions “—Bankruptcy and Foreclosure.” TAX MATTERS Series 2021 Bonds Interest on the Series 2021 Bonds is not excluded from gross income for federal income tax purposes under Section 103 of the Code. Bond Counsel is of the opinion that interest on the Series 2021 Bonds is exempt from State of California personal income taxes. Bond Counsel expresses no opinion regarding any other tax consequences relating to the ownership or disposition of, or the amount, accrual, or receipt of interest on, the Series 2021 Bonds . A complete copy of the proposed form of opinion of Bond Counsel is set forth in APPENDIX C – “FORM OF BOND COUNSEL OPINION.” The following discussion summarizes certain U.S. federal tax considerations generally applicable to holders of the Series 2021 Bonds that acquire their Series 2021 Bonds in the initial offering. The discussion 10.c Packet Pg. 167 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 65 below is based upon laws, regulations, rulings, and decisions in effect and available on the date hereof, all of which are subject to change, possibly with retroactive effect. Prospective investors should note that no rulings have been or are expected to be sought from the IRS with respect to any of the U.S. federal tax consequences discussed below, and no assurance can be given that the IRS will not take contrary positions. Further, the following discussion does not deal with all U.S. tax consequences applicable to any given investor, nor does it address the U.S. tax considerations applicable to all categories of investors, some of which may be subject to special taxing rules (regardless of whether or not such investors constitute U.S. Holders), such as certain U.S. expatriates, banks, REITs, RICs, insurance companies, tax-exempt organizations, dealers or traders in securities or currencies, partnerships, S corporations, estates and trusts, investors that hold their Series 2021 Bonds as part of a hedge, straddle or an integrated or conversion transaction, or investors whose “functional currency” is not the U.S. dollar. Furthermore, it does not address (i) alternative minimum tax con sequences, (ii) the net investment income tax imposed under Section 1411 of the Code, or (iii) the indirect effects on persons who hold equity interests in a holder. This summary also does not consider the taxation of the Series 2021 Bonds under state, local or non-U.S. tax laws. In addition, this summary generally is limited to U.S. tax considerations applicable to investors that acquire their Series 2021 Bonds pursuant to this offering for the issue price that is applicable to such Series 2021 Bonds (i.e., the price at which a substantial amount of the Series 2021 Bonds are sold to the public) and who will hold their Series 2021 Bonds as “capital assets” within the meaning of Section 1221 of the Code. As used herein, “U.S. Holder” means a beneficial owner of a Series 2021 Bond that for U.S. federal income tax purposes is an individual citizen or resident of the United States, a corporation or other entity taxable as a corporation created or organized in or under the laws of the United States or any sta te thereof (including the District of Columbia), an estate the income of which is subject to U.S. federal income taxation regardless of its source or a trust where a court within the United States is able to exercise primary supervision over the administration of the trust and one or more United States persons (as defined in the Code) have the authority to control all substantial decisions of the trust (or a trust that has made a valid election under U.S. Treasury Regulations to be treated as a domestic trust). As used herein, “Non-U.S. Holder” generally means a beneficial owner of a Series 2021 Bond (other than a partnership) that is not a U.S. Holder. If a partnership holds Series 2021 Bonds , the tax treatment of such partnership or a partner in such part nership generally will depend upon the status of the partner and upon the activities of the partnership. Partnerships holding Series 2021 Bonds , and partners in such partnerships, should consult their own tax advisors regarding the tax consequences of an investment in the Series 2021 Bonds (including their status as U.S. Holders or Non-U.S. Holders). Prospective investors should consult their own tax advisors in determining the U.S. federal, state, local or non-U.S. tax consequences to them from the purchase, ownership and disposition of the Series 2021 Bonds in light of their particular circumstances. U.S. Holders Interest. Interest on the Series 2021 Bonds generally will be taxable to a U.S. Holder as ordinary interest income at the time such amounts are accrued or received, in accordance with the U.S. Holder’s method of accounting for U.S. federal income tax purposes. To the extent that the issue price of any maturity of the Series 2021 Bonds is less than the amount to be paid at maturity of such Series 2021 Bonds (excluding amounts stated to be interest and payable at least annually over the term of such Series 2021 Bonds ), the difference may constitute original issue discount (“OID”). U.S. Holders of Series 2021 Bonds will be required to include OID in income for U.S. federal income tax purposes as it accrues, in accordance with a constant yield method based on a compounding of interest (which may be before the receipt of cash payments attributable to such income). Under this method, U.S. Holders generally will be required to include in income increasingly greater amounts of OID in successive accrual periods. 10.c Packet Pg. 168 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 66 Series 2021 Bonds purchased for an amount in excess of the principal amount payable at maturity (or, in some cases, at their earlier call date) will be treated as issued at a premium. A U.S. Holder of a Series 2021 Bond issued at a premium may make an election, applicable to all debt securities purchased at a premium by such U.S. Holder, to amortize such premium, using a constant yield method over the term of such Series 2021 Bond. Sale or Other Taxable Disposition of the Series 2021 Bonds . Unless a non-recognition provision of the Code applies, the sale, exchange, redemption, retirement (including pursuant to an offer by the Agency) or other disposition of a Series 2021 Bond will be a taxable event for U.S. federal income tax purposes. In such event, in general, a U.S. Holder of a Series 2021 Bond will recognize gain or loss equal to the difference between (i) the amount of cash plus the fair market value of property received (except to the extent attributable to accrued but unpaid interest on the Series 2021 Bond, which will be taxed in the manner described above) and (ii) the U.S. Holder’s adjusted U.S. federal income tax basis in the Series 2021 Bond (generally, the purchase price paid by the U.S. Holder for the Series 2021 Bond, decreased by any amortized premium, and increased by the amount of any OID previously included in income by such U.S. Holder with respect to such Series 2021 Bond). Any such gain or loss generally will be capital gain or loss. In the case of a non-corporate U.S. Holder of the Series 2021 Bonds , the maximum marginal U.S. federal income tax rate applicable to any such gain will be lower than the maximum marginal U.S. federal income tax rate applicable to ordinary income if such U.S. holder’s holding period for the Series 2021 Bonds exceeds one year. The deductibility of capital losses is subject to limitations. Defeasance of the Taxable Bonds. If the Agency defeases any Series 2021 Bond, the Series 2021 Bond may be deemed to be retired and “reissued” for federal income tax purposes as a result of the defeasance. In that event, in general, a holder will recognize taxable gain or loss equal to the difference between (i) t he amount realized from the deemed sale, exchange or retirement (less any accrued qualified stated interest which will be taxable as such) and (ii) the holder’s adjusted tax basis in the Series 2021 Bond. Information Reporting and Backup Withholding. Payments on the Series 2021 Bonds generally will be subject to U.S. information reporting and possibly to “backup withholding.” Under Section 3406 of the Code and applicable U.S. Treasury Regulations issued thereunder, a non-corporate U.S. Holder of the Series 2021 Bonds may be subject to backup withholding at the current rate of 28% with respect to “reportable payments,” which include interest paid on the Series 2021 Bonds and the gross proceeds of a sale, exchange, redemption, retirement or other disposition of the Series 2021 Bonds . The payor will be required to deduct and withhold the prescribed amounts if (i) the payee fails to furnish a U.S. taxpayer identification number (“TIN”) to the payor in the manner required, (ii) the IRS notifies the payor that the TIN furnished by the payee is incorrect, (iii) there has been a “notified payee underreporting” described in Section 3406(c) of the Code or (iv) the payee fails to certify under penalty of perjury that the payee is not subject to withholding under Sect ion 3406(a)(1)(C) of the Code. Amounts withheld under the backup withholding rules may be refunded or credited against the U.S. Holder’s federal income tax liability, if any, provided that the required information is timely furnished to the IRS. Certain U.S. holders (including among others, corporations and certain tax-exempt organizations) are not subject to backup withholding. A holder’s failure to comply with the backup withholding rules may result in the imposition of penalties by the IRS. Non-U.S. Holders Interest. Subject to the discussions below under the headings “Information Reporting and Backup Withholding” and “FATCA,” payments of principal of, and interest on, any Series 2021 Bond to a Non-U.S. Holder, other than (1) a controlled foreign corporation, as such term is defined in the Code, which is related to the Agency through stock ownership and (2) a bank which acquires such Series 2021 Bond in consideration of an extension of credit made pursuant to a loan agreement entered into in the ordinary course of business, will not be subject to any U.S. federal withholding tax provided that the beneficial owner of the Series 2021 Bond provides a certification completed in compliance with applicable statutory and regulatory requirements, which requirements are discussed below under the heading “Information Reporting and Backup Withholding,” or an exemption is otherwise established. 10.c Packet Pg. 169 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 67 Disposition of the Series 2021 Bonds. Subject to the discussions below under the headings “Information Reporting and Backup Withholding” and “FATCA,” any gain realized by a Non-U.S. Holder upon the sale, exchange, redemption, retirement (including pursuant to an offer by the Agency or a deemed retirement due to defeasance of the Series 2021 Bond) or other disposition of a Series 2021 Bond generally will not be subject to U.S. federal income tax, unless (i) such gain is effectively connected with the conduct by such Non -U.S. Holder of a trade or business within the United States; or (ii) in the case of any gain realized by an individual Non-U.S. Holder, such holder is present in the United States for 183 days or more in the taxable year of such sale, exchange, redemption, retirement (including pursuant to an offer by the Agency) or other disposition and certain other conditions are met. U.S. Federal Estate Tax. A Series 2021 Bond that is held by an individual who at the time of death is not a citizen or resident of the United States will not be subject to U.S. federal estate tax as a result of such individual’s death, provided that at the time of such individual’s death, payments of interest with respect to such Series 2021 Bond would not have been effectively connected with the conduct by such individual of a trade or business within the United States. Information Reporting and Backup Withholding. Subject to the discussion below under the heading “FATCA,” under current U.S. Treasury Regulations, payments of principal and interest on any Series 2021 Bonds to a holder that is not a United States person will not be subject to any backup withholding tax requirements if the beneficial owner of the Series 2021 Bond or a financial institution holding the Series 2021 Bond on behalf of the beneficial owner in the ordinary course of its trade or business provides an appropriate certification to the payor and the payor does not have actual knowledge that the certification is false. If a beneficial owner provides the certification, the certification must give the name and address of such owner, state that such owner is not a United States person, or, in the case of an individual, that such owner is neither a citizen nor a resident of the United States, and the owner must sign the certificate under penalties of perjury. The current backup withholding tax rate is 28%. Foreign Account Tax Compliance Act (“FATCA’) – U.S. Holders and Non-U.S. Holders. Sections 1471 through 1474 of the Code, impose a 30% withholding tax on certain types of payments made to foreign financial institutions, unless the foreign financial institution enters into an agreement with the U.S. Treasury to, among other things, undertake to identify accounts held by certain U.S. persons or U.S.-owned entities, annually report certain information about such accounts, and withhold 30% on payments to account holders whose actions prevent it from complying with these and other reporting requirements, or unless the foreign financial institution is otherwise exempt from those requirements. In addition, FATCA imposes a 30% withholding tax on the same types of payments to a non-financial foreign entity unless the entity certifies that it does not have any substantial U.S. owners or the entity furnishes identifying information regarding each substantial U.S. owner. Failure to comply with the additional certification, information reporting and o ther specified requirements imposed under FATCA could result in the 30% withholding tax being imposed on payments of interest and principal under the Series 2021 Bonds and sales proceeds of Series 2021 Bonds held by or through a foreign entity. In general, withholding under FATCA currently applies to payments of U.S. source interest (including OID) and, under current Treasury Regulations, will apply to (i) gross proceeds from the sale, exchange or retirement of debt obligations paid after December 31, 201 6 and (ii) certain “pass-thru” payments no earlier than January 1, 2017. However, the U.S. Treasury Department recently stated its intention to revise the current U.S. Treasury Regulations regarding FATCA to provide that withholding under FATCA generally will apply to (i) gross proceeds from the sale, exchange or retirement of debt obligations paid after December 31, 2018 and (ii) certain “pass-thru” payments no earlier than January 1, 2019. Prospective investors should consult their own tax advisors regarding FATCA and its effect on them. The foregoing summary is included herein for general information only and does not discuss all aspects of U.S. federal taxation that may be relevant to a particular holder of Series 2021 Bonds in light of the holder’s particular circumstances and income tax situation. Prospective investors are urged to consult their own tax advisors as to any tax consequences to them from the purchase, ownership and disposition of Series 2021 Bonds , including the application and effect of state, local, non-U.S., and other tax laws. 10.c Packet Pg. 170 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 68 CONTINUING DISCLOSURE With respect to continuing disclosure, the Agency will prepare and provide annual updates of the information contained in the tables included in this Official Statement with respect to property tax revenues, collections, any material delinquencies, principal taxpayers, and notices of enumerated events and all other remaining annual information required under the Continuing Disclosure Certificate. The Agency will act as Dissemination Agent and will file the annual reports and notices with the Municipal Securities Rulemaking Board (the “MSRB”) through its Electronic Municipal Market Access system (“EMMA”). See the caption “CONTINUING DISCLOSURE” and APPENDIX F – “FORM OF CONTINUING DISCLOSURE CERTIFICATE.” [TO BE UPDATED WITH CURRENT STATUS OF COMPLIANCE] CONCLUDING INFORMATION Underwriting The 2021 Bonds are being purchased by Hilltop Securities Inc. (the “Underwriter”). The Underwriter has agreed to purchase the Series 2021 Bonds at a price of $__________ (being the principal amount of the Series 2021 Bonds and less an Underwriter’s discount of $__________). The Underwriter will purchase all of the Series 2021 Bonds if any are purchased. The Underwriter may offer and sell Series 2021 Bonds to certain dealers and others at a price lower than the offering price stated on the inside cover page of this Official Statement. The offering price may be changed from time to time by the Underwriter. Legal Opinion The opinion of Best Best & Krieger LLP, Bond Counsel, approving the validity of the Series 2021 Bonds and stating that interest on the Series 2021 Bonds is excluded from gross income for federal income tax purposes and that interest on the Series 2021 Bonds is exempt from California personal income taxes under present State income tax laws will be furnished to the purchaser at the time of delivery of the Series 2021 Bonds at the expense of the Agency. Copies of the proposed forms of Bond Counsel’s final approving opinions with respect to the Series 2021 Bonds are attached hereto as Appendix C. The legal opinions are only as to legality and is not intended to be nor is it to be interpreted or relied upon as a disclosure document or an express or implied recommendation as to the investment quality of the Series 2021 Bonds. Bond Counsel undertakes no responsibility for the accuracy, completeness or fairness of this Preliminary Official Statement. Certain legal matters will be passed on for the Agency by Best Best & Krieger LLP, as Disclosure Counsel, and as the City Attorney. In addition, certain legal matters will be passed on for the Underwriter by Kutak Rock LLP, Irvine, California, as Underwriter’s Counsel, and for the Trustee by its counsel. Municipal Advisor Columbia Capital Management, LLC (the “Municipal Advisor”) has assisted the Agency in matters relating to the planning, structuring, and sale of the Series 2021 Bonds and the preparation of this Preliminary Official Statement, and has provided general financial advisory services to the Agency with respect to the sale of the Series 2021 Bonds. The Municipal Advisor provides financial advisory services only and does not engage in the underwriting, marketing, or trading of municipal securities or other negotiable instruments. The payment of fees of the Municipal Advisor is contingent upon the closing of the Series 2021 Bond transaction. 10.c Packet Pg. 171 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 69 Litigation There is no action, suit or proceeding known to the Agency to be pending and notice of which has been served upon and received by the Agency, or threatened, restraining or enjoining the execution or delivery of the Series 2021 Bonds or the Indenture or in any way contesting or affecting the validity of the foregoing or any proceedings of the Agency taken with respect to any of the foregoing. Ratings In connection with the issuance and delivery of the Series 2021 Bonds, S&P is expected to assign their municipal bond rating of “__” to the Series 2021 Bonds with the understanding that, upon delivery of such Series 2021 Bonds, a policy insuring the payment when due of the principal of and interest on the Series 2021 Bonds will be issued by the 2021 Insurer. S&P has assigned their underlying municipal bond rating of “__” to the Series 2021 Bonds. Such ratings reflect only the views of such organization an d any desired explanation of the significance of such rating should be obtained from the rating agency furnishing the same. Generally, a rating agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its own. There is no assurance that this rating will continue for any given period of time or that this rating will not be revised downward or withdrawn entirely by S&P, if in the judgment of such rating agency, circumstances so warrant. Any such downward revision or withdrawal of any rating obtained may have an adverse effect on the market price of the Series 2021 Bonds. The Agency and the Underwriter have undertaken no responsibility either to bring to the attention of the owners of the 2021 Bonds any proposed change in or withdrawal of a rating or to oppose any such proposed revision or withdrawal, however. Any such downward change in or withdrawal of a rating might have an adverse effect on the market price or marketability of the Series 2021 Bonds. Miscellaneous All of the preceding summaries of the Indenture, the Bond Law, the Dissolution Act, the Redevelopment Law, other applicable legislation, the Redevelopment Plan for the Project Areas, agreements and other documents are made subject to the provisions of such documents respectively and do not purport to be complete statements of any or all of such provisions. Reference is hereby made to such documents on file with the Agency for further information in connection therewith. This Preliminary Official Statement does not constitute a contract with the purchasers of the Series 2021 Bonds. Any statements made in this Preliminary Official Statement involving matters of opinion or estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. 10.c Packet Pg. 172 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series 70 The execution and delivery of this Preliminary Official Statement by the City Manager of the City of San Bernardino, acting as the executive director of the Agency, has been duly authorized by the Agency. SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: City Manager of the City of San Bernardino 10.c Packet Pg. 173 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series A-1 APPENDIX A FISCAL CONSULTANT’S REPORT 10.c Packet Pg. 174 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series B-1 APPENDIX B SUMMARY OF THE INDENTURE 10.c Packet Pg. 175 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series C-1 APPENDIX C FORM OF BOND COUNSEL OPINION 10.c Packet Pg. 176 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series D-1 APPENDIX D BOOK -ENTRY ONLY SYSTEM The information in this Appendix concerning The Depository Trust Company (“DTC’), New York, New York, and DTC ‘s book-entry system has been obtained from DTC and the Agency takes no responsibility for the completeness or accuracy thereof The Agency cannot and does not give any assurances that DTC, DTC Participants or Indirect Participants will distribute to the Ben eficial Owners (a) payments of interest, principal or premium, if any, with respect to the Series 2021 Bonds, (b) certificates representing ownership interest in or other confirmation of ownership interest in the Series 2021 Bonds, or (c) redemption or oth er notices sent to DTC or Cede & Co., its nominee, as the registered owner of the Series 2021 Bonds, or that they will so do on a timely basis, or that DTC, DTC Participants or DTC Indirect Participants will act in the manner described in this Appendix. Th e current “Rules” applicable to DTC are on file with the Securities and Exchange Commission and the current “Procedures” of DTC to be followed in dealing with DTC Participants are on .file with DTC. The Depository Trust Company (“DTC ”), New York, NY, will act as securities depository for the Series 2021 Bonds. The Series 2021 Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC ’s partnership nominee) or such other name as may be requested by an authorized representat ive of DTC. One fully-registered certificate will be issued for each maturity of the Series 2021 Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC, the world’s largest securities depository, is a limited -purpose trust company organized under the New York Banking Law, a “banking organization ” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC ’s participants (“Direct Participants ”) deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book -entry transfers and pledges between Direct Participants ’ accounts. This eliminates the need for physical movement of securities certificates. Direct Pa rticipants include both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants ”). DTC has a Standard & Poor’s rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. The information set forth on such website is not incorporated into the Preliminary Official Statement by reference. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Series 2021 Bonds on DTC ’s records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants ’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Series 2021 Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in the event that use of the book-entry system for the Series 2021 Bonds is discontinued. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC ’s partnership nominee, Cede & Co., or such o ther name as may be requested by an authorized 10.c Packet Pg. 177 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series D-2 representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the act ual Beneficial Owners of the Series 2021 Bonds; DTC ’s records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain re sponsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participant s to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Series 2021 Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Series 2021 Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Series 2021 Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and req uest that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the Series 2021 Bonds within a maturity are being redeemed, DTC ’s practice is to determine by lot the amount of the interest of each Dire ct Participant in such maturity to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized by a Direct Participant in accordance with DTC ’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Agency as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a li sting attached to the Omnibus Proxy). Principal, premium (if any), and interest payments on the Series 2021 Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC ’s practice is to credit Direct Participants ’ accounts upon DTC ’s receipt of funds and corresponding detail information from the Agency or the Trustee, on payable date in accordance with their respective holdings shown on DTC ’s records. Payments by Participants to Beneficial Owners wi ll be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, the Trustee , or the Agency, subject to any statutory or regulatory requirements as may be in effect from time to time. Principal, premium (if any), and interest payments with respect to the Series 2021 Bonds to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) are the responsibility of the Agency or the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the respon sibility of Direct and Indirect Participants. DTC may discontinue providing its services as depository with respect to the Series 2021 Bonds at any time by giving reasonable notice to the Agency or the Trustee. Under such circumstances, in the event that a successor depository is not obtained, certificates representing the Series 2021 Bonds are required to be printed and delivered. The Agency may decide to discontinue use of the system of book -entry-only transfers through DTC (or a successor securities depo sitory). In that event, certificates representing the Series 2021 Bonds will be printed and delivered to DTC in accordance with the provisions of the Indenture. The information in this section concerning DTC and DTC ’s book-entry system has been obtained fr om sources that the Agency believes to be reliable, but the Agency takes no responsibility for the accuracy thereof. 10.c Packet Pg. 178 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series E-1 APPENDIX E STATE DEPARTMENT OF FINANCE LETTER 10.c Packet Pg. 179 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series F-1 APPENDIX F FORM OF CONTINUING DISCLOSURE CERTIFICATE Upon the issuance of the Series 2021 Bonds, the Agency proposes to enter into a Continuing Disclosure Certificate in substantially the form set forth below. This Disclosure Certificate is not intended to and does not comply with the requirements of Rule 15c2 -12 of the Securities Exchange Act of 1934, as amended. This CONTINUING DISCLOSURE CERTIFICATE (this “Disclosure Certificate”) is executed and delivered by the Successor Agency to the Redevelopment Agency of the City of San Bernardino (the “Successor Agency”) in connection with the issuance of the Successor Agency to the Redevelopment Agency of the City of San Bernardino, Tax Allocation Refunding Bonds, Series 2021A (Federally Taxable) (the “Bonds”). The Bonds are being issued pursuant to an Indenture of Trust, dated as of ____________, 2021, by and between the Successor Agency and U.S. Bank National Association, as trustee (the “Indenture”). The Successor Agency covenants and agrees as follows: Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Successor Agency for the benefit of the holders and beneficial owners of the Bonds. This Disclosure Certificate is not intended to comply with the requirements of Rule 15c2-12(b)(5) of the Securities Exchange Act of 1934 (the “Rule”). Section 2. Definitions. In addition to the definitions set forth above and in the Indenture, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section 2, the following capitalized terms shall have the following meanings: “Annual Report” means any Annual Report provided by the Successor Agency pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. “Annual Report Date” means each March 31, commencing March 31, 2022, or the date that is nine months after the end of the Successor Agency’s fiscal year if the Successor Agency’s fiscal year is changed (the Successor Agency’s fiscal year currently ends June 30). “Dissemination Agent” means, initially, the Successor Agency, or any successor Dissemination Agent designated in writing by the Successor Agency and which has filed with the Successor Agency a written acceptance of such designation. “Financial Obligation” shall mean, for purposes of the Listed Events set out in Section 5(a)(10) and Section (5)(b)(8), a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term “Financial Obligation” shall not include municipal securities (as defined in the Securities Exchange Act of 1934, as amended) as to which a final official statement (as defined in the Rule) has been provided to the MSRB consistent with the Rule. “Listed Events” means any of the events listed in Section 5(a) of this Disclosure Certificate. “Official Statement” means the final Official Statement executed by the Successor Agency in connection with the issuance of the Bonds. 10.c Packet Pg. 180 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series F-2 “MSRB” means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule, or any other repository of disclosure information that may be designated by the Securities and Exchange Commission as such for purposes of the Rule in the future. “Participating Underwriter” means Hilltop Securities Inc., the original underwriter of the Bonds. Section 3. Provision of Annual Reports. (a) The Successor Agency shall, or shall cause the Dissemination Agent to, not later than the Annual Report Date, commencing March 31, 2022 with the report for the 2021-22 fiscal year, provide to the MSRB, in an electronic format as prescribed by the MSRB, an Annual Report that is consistent with the requirements of Section 4 of this Disclosure Certificate. Not later than 15 Business Days prior to the Annual Report Date, the Successor Agency shall provide the Annual Report to the Dissemination Agent (if other than the Successor Agency). If by 15 Business Days prior to the Annual Report Date the Dissemination Agent (if other than the Successor Agency) has not received a copy of the Annual Report, the Dissemination Agent shall contact the Successor Agency to determine if the Successor Agency is in compliance with the previous sentence. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the Successor Agency may be submitted separately from the balance of the Annual Report, and later than the Annual Report Date, if not available by that date. If the Successor Agency’s fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(b). The Successor Agency shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by the Successor Agency hereunder. (b) If the Successor Agency does not provide (or cause the Dissemination Agent to provide) an Annual Report by the Annual Report Date, the Successor Agency shall provide (or cause the Dissemination Agent to provide) in a timely manner to the MSRB, in an electronic format as prescribed by the MSRB, a notice in substantially the form attached as Exhibit A. (c) With respect to each Annual Report, the Dissemination Agent shall: (i) determine each year prior to the Annual Report Date the then-applicable rules and electronic format prescribed by the MSRB for the filing of annual continuing disclosure reports; and (ii) if the Dissemination Agent is other than the Successor Agency, file a report with the Successor Agency certifying that the Annual Report has been provided pursuant to this Disclosure Certificate, and stating the date it was provided. Section 4. Content of Annual Reports. The Annual Report shall contain or incorporate by reference the following: (a) Financial statements filed on or before the Annual Report Date, financial information and operating data with respect to the Successor Agency for the preceding fiscal year, substantially similar to that provided in the corresponding tables in the Official Statement: (i) Principal amount of Bonds outstanding. 10.c Packet Pg. 181 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series F-3 (ii) Description of issuance by the Successor Agency of any debt payable fro m or secured by a pledge of Tax Revenues in the Project Areas (as defined in the Official Statement) in the most recently completed fiscal year (including details as to date, amount, term, rating and insurance). (iii) An estimate of the Agency’s cash flow for the next June 1 and January 2 Northwest Project Area and Redevelopment Property Tax Trust Fund distributions following the date of the Annual Report, in the form of Tables 1A and 1B of the Official Statement. (iv) The total assessed value of property in the combined Project Areas for the current fiscal year in the form of Table 2 in the Official Statement. (v) The top ten local secured property taxpayers in the Northwest Project Area and the combined Project Areas in the form of Tables 4A and 4B to the Official Statement. (vi) Tax levy and collection information for the most recent fiscal year in the form set forth in Tables 6A and 6B. (vii) The coverage ratio provided by Tax Revenues in the Northwest Project Area and the combined Project Areas with respect to debt service on the Bonds and any Parity Bonds for the most recently completed fiscal year only, in the form of Tables 9A and 9B in the Official Statement, without any requirement to update any projected Tax Revenues set forth in Tables 7A through 8B. (b) Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the Successor Agency and financial statements of the City of San Bernardino or related public entities, which are available to the public on the MSRB’s Internet web site or filed with the Securities and Exchange Commission. The Successor Agency shall clearly identify each such other document so included by reference. Section 5. Reporting of Significant Events. (a) The Successor Agency shall give, or cause to be given, notice of the occurrence of any of the following Listed Events with respect to the Bonds: (1) Principal and interest payment delinquencies. (2) Non-payment related defaults, if material. (3) Unscheduled draws on debt service reserves reflecting financial difficulties. (4) Unscheduled draws on credit enhancements reflecting financial difficulties. (5) Substitution of credit or liquidity providers, or their failure to perform. (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701 - TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security. (7) Modifications to rights of security holders, if material. 10.c Packet Pg. 182 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series F-4 (8) Bond calls, if material, and tender offers. (9) Defeasances. (10) Release, substitution, or sale of property securing repayment of the s ecurities, if material. (11) Rating changes. (12) Bankruptcy, insolvency, receivership or similar event of the Successor Agency or other obligated person. (13) The consummation of a merger, consolidation, or acquisition involving the Successor Agency or an obligated person, or the sale of all or substantially all of the assets of the Successor Agency or an obligated person (other than in the ordinary course of business), the entry into a definitive agreement to undertake such an action, or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material. (14) Appointment of a successor or additional trustee or the change of name of a trustee, if material. (15) Incurrence of a financial obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the obligated person, any of which affect security holders, if material. (16) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the obligated person, any of which reflect financial difficulties. (b) Whenever the Successor Agency obtains knowledge of the occurrence of a Listed Event, the Successor Agency shall, or shall cause the Dissemination Agent (if not the Successor Agency) to, file a notice of such occurrence with the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the Listed Event. Notwithstanding the foregoing, notice of Listed Events described in subsections (a)(8) and (9) above need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to holders of affected Bonds under the Indenture. (c) The Successor Agency acknowledges that the events described in subparagraphs (a)(2), (a)(7), (a)(8) (if the event is a bond call), (a)(10), (a)(13), and (a)(14) of this Section 5 contain th e qualifier “if material” and that subparagraph (a)(6) also contains the qualifier “material” with respect to certain notices, determinations or other events affecting the tax status of the Bonds. The Successor Agency shall cause a notice to be filed as set forth in paragraph (b) above with respect to any such event only to the extent that it determines the event’s occurrence is material for purposes of U.S. federal securities law. Whenever the Successor Agency obtains knowledge of the occurrence of any of these Listed Events, the Successor Agency will as soon as possible determine if such event would be material under applicable federal securities law. If such event is determined to be material, the Successor Agency will cause a notice to be filed as set forth in paragraph (b) above. 10.c Packet Pg. 183 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series F-5 (d) For purposes of this Disclosure Certificate, any event described in paragraph (a)(12) above is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the Successor Agency in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the Successor Agency, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the Successor Agency. Section 6. Identifying Information for Filings with the MSRB . All documents provided to the MSRB under the Disclosure Certificate shall be accompanied by identifying information as prescribed by the MSRB. Section 7. Termination of Reporting Obligation. The Successor Agency’s obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the Successor Agency shall give notice of such termination in the same manner as for a Listed Event under Section 5(b). Section 8. Dissemination Agent. The Successor Agency may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any Dissemination Agent, with or without appointing a successor Dissemination Agent. Any Dissemination Agent may resign by providing 30 days’ written notice to the Successor Agency. Section 9. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the Successor Agency may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied: (a) if the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Bonds, or type of business conducted; (b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) the proposed amendment or waiver either (i) is approved by holders of the Bonds in the manner provided in the Indenture for amendments to the Indenture with the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Bonds. If the annual financial information or operating data to be provided in the Annual Report is amended pursuant to the provisions hereof, the first Annual Report filed pursuant hereto containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided. 10.c Packet Pg. 184 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series F-6 If an amendment is made to this Disclosure Certificate modifying the accounting principles to be followed in preparing financial statements, the Annual Report for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information, in order to provide information to investors to enable them to evaluate the ability of the Successor Agency to meet its obligations. To the extent reasonably feasible, the comparison shall be quantitative. A notice of any amendment made pursuant to this Section 9 shall be filed in the same manner as for a Listed Event under Section 5(b). Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Successor Agency from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the Successor Agency chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the Successor Agency shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. Section 11. Default. If the Successor Agency fails to comply with any provision of this Disclosure Certificate, the Participating Underwriter or any holder or bene ficial owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Successor Agency to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Indenture, and the sole remedy under this Disclosure Certificate in the event of any failure of the Successor Agency to comply with this Disclosure Certificate shall be an action to compel performance. Section 12. Duties, Immunities and Liabilities of Dissemination Agent. (a) The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the Successor Agency agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of its powers and duties hereunder, includi ng the costs and expenses (including attorneys’ fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. The Dissemination Agent shall have no duty or obligation to revi ew any information provided to it by the Successor Agency hereunder, and shall not be deemed to be acting in any fiduciary capacity for the Successor Agency, the Bond holders or any other party. The obligations of the Successor Agency under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds. (b) The Dissemination Agent shall be paid compensation by the Successor Agency for its services provided hereunder in accordance with its schedule of fees as amended from time to time, and shall be reimbursed for all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. 10.c Packet Pg. 185 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series F-7 Section 13. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Successor Agency, the Dissemination Agent, the Participating Underwriter and the holders and beneficial owners from time to time of the Bonds, and shall create no rights in any other person or entity. Section 14. Counterparts. This Disclosure Certificate may be executed in several counterparts, each of which shall be regarded as an original, and all of which shall constitute one and the same instrument. SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: ________, Executive Director 10.c Packet Pg. 186 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series F-8 EXHIBIT A NOTICE OF FAILURE TO FILE ANNUAL REPORT Name of Issuer: Successor Agency to the Redevelopment Agency of the City of San Bernardino Name of Issue: Successor Agency to the Redevelopment Agency of the City of San Bernardino, Tax Allocation Refunding Bonds, Series 2021A (Federally Taxable) Date of Issuance: __________ NOTICE IS HEREBY GIVEN that the Successor Agency has not provided an Annual Report with respect to the above-named Bonds as required by the Indenture of Trust, dated as of _________________, 2021, by and between the Successor Agency and U.S. Bank National Association, as trustee. The Successor Agency anticipates that the Annual Report will be filed by . Dated: _______________ DISSEMINATION AGENT: _______________________ 10.c Packet Pg. 187 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series G-1 APPENDIX G SPECIMEN MUNICIPAL BOND INSURANCE POLICY 10.c Packet Pg. 188 Attachment: Attachment 3 - Preliminary Bond Official Statement [Revision 2] (7307 : Successor Agency Action: Final Approval of 2010A Series Page 1 Discussion City of San Bernardino Date: May 19, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Barbara Whitehorn, Director of Finance Subject: Receive an Oral Report on Measure S Committee Recommendations Regarding the Proposed FY 2021/22 Oper 11 Packet Pg. 189 Page 1 Public Hearing City of San Bernardino Request for Council Action Date: May 19, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7) Recommendation Adopt Resolution No. 2021-101 of the Mayor and City Council of the City of San Bernardino, California, denying Appeal 21-01, thereby upholding the Planning Commission’s approval of Development Permit Type-P 20-10 and Minor Exception 21- 01 allowing the development and establishment of a commercial retail building containing approximately 10,542 square feet with a nine percent (9%) reduction of the number of required off -street parking spaces from 35 to 32 spaces on a project site comprised of two (2) parcels containing a total of approximately 0.83 acres, located at 3191 North E Street (APN: 0152-163-18 and 19) within the Commercial General (CG-1) Zone. Background On March 9, 2021, staff presented a recommendation of approval to the Planning Commission for Development Permit Type-P 20-10 and Minor Exception 21-01 for the development and establishment of a commercial retail building containing approximately 10,542 square feet with a nine (9%) percent reduction of the number of required off- street parking spaces from 35 to 32 spaces on a project site comprised of two (2) parcels containing a total of approximately 0.83 acres. The recommendation of Staff was based on the fact that the design of the commercial development met the requirements of the Development Code as established in the findings of fact and subject to the recommended Conditions of Approval (Attachment 3). During the public hearing, the Planning Commission received a presenta tion from staff and listened to a pre-recorded public comment from Debra Blanco (the Appellant). After public testimony and deliberation, the Planning Commission voted to approve the project based on the findings of fact and subject to the recommended Cond itions of Approval. The motion to approve was made by Vice -Chairperson Jones and seconded by Commissioner Chang. The motion carried by the following vote: Ayes: Jones, Lewis and Chang Nays: Quiel and Flores Abstain: None 12 Packet Pg. 190 7322 Page 2 Absent: Guerrero, Lopez, Sanchez and Morales Subsequently, on March 22, 2021, an application (Appeal 21 -01) was filed to appeal the Planning Commission’s approval of Development Permit Type -P 20-10 and Minor Exception 21-01 (Attachment 2). The appeal of Development Permit Type-P 20-10 and Minor Exception 21-01 was originally noticed and scheduled for consideration by the City Council at their May 5, 2021 meeting. Subsequent to a request by the appellant, the item was continued by the City Council to the May 19, 2021 meeting. Grounds for Appeal The specific grounds for the appeal, as provided, are as follows: 1. The Planning Commission did not sufficiently examine or take into consideration the existing unsafe conditions of the property located on the southwest corner of E Street and Marshall Boulevard and how these existing conditions relate to, and will negatively affect, the Dollar General project property located at 3191 North E Street and the surrounding residential neighborhood on a long-term basis. Staff Clarification: The proposal considered by the Planning Commission was for the development of a commercial retail building located on a commercial corridor (E Street). The recommendation for approval of the project was based on the fact that the design of the commercial development met the requirements of the Development Code as established in the findings of fact and subject to the recommended Conditions of Approval. The proposed land use was not subject to the consideration of the Development Permit by the Planning Commission. During the public hearing, the Planning Commission received a pre- recorded public comment from Debra Blanco (the Appellant) in which substantially the same, or similar, comments were made expressing this first ground for appeal. 2. The processes for notifying residents within the 500-foot radius of the proposed project was insufficient to allow residents time to respond to the March 9, 2021 Planning Commission meeting. Several residents report that they did not receive a notice of the Public Hearing by the U.S. Postal Service. Also, due to COVID-19, many residents no longer subscribe to the San Bernardino Sun newspaper in paper and/or electronic form. Staff Clarification: Noticing for the Planning Commission meeting of March 9, 2021 was completed in accordance with Section 19.52.020 (Hearing and Appeals - Application Processing) of the City of San Bernardino Development Code. 3. The project applicant has not demonstrated the retail establishment will provide 12 Packet Pg. 191 7322 Page 3 adequate and essential precautions and prote ctions necessary to address the safety and security of the neighborhood. Staff Clarification: As noted above, the operations of the proposed commercial development were not subject to the consideration of the Development Permit by the Planning Commission. Although the business operations were not subject to Planning Commission review, during the public hearing the developer (applicant) expressed a willingness to bring forward the concerns expressed during the discussion regarding security cameras and lighting to the future tenant. However, as the item for consideration by the Planning Commission did not include operational conditions, any implementation of any additional security measures would be at the discretion of the future tenant. Project Description Pursuant to the requirements of Chapter 19.44 (Development Permits) and Chapter 19.56 (Minor Exceptions) of the City of San Bernardino Development Code, the applicant is requesting the approval of Development Permit Type-P 20-10 and Minor Exception 21-01 to allow the development and establishment of a commercial retail building containing approximately 10,542 square feet with a nine (9%) percent reduction of the number of required off -street parking spaces from 35 to 32 spaces on a project site comprised of two (2) parcels containing a total of approximately 0.83 acres. Public Hearing Notification Notification of the public hearings for the project were completed as follows, in accordance with Section 19.52.020 (Hearing and Appeals - Application Processing) of the City of San Bernardino Development Code: February 23, 2021: Notices were mailed to the owners of property within 500 feet of the exterior boundaries of the project site, providing the nature of the request, location of the property, the date, time, and place of the Planning Commission meeting of March 9, 2021 for Development Permit Type-P 20-10 and Minor Exception 21-01. February 26, 2021: Legal advertisement was published in the San Bernardino Sun Newspaper. April 21, 2021: Notices were mailed to the owners of property within 500 feet of the exterior boundaries of the project site, providing the nature of the request, location of the property, the date, time, and place of the Mayor and City Council meeting of May 5, 2021 for Appeal 21-01 for Development Permit Type-P 20-10 and Minor Exception 21-01. April 24, 2021: Legal advertisement was published in the San Bernardino Sun Newspaper. May 5, 2021: Appeal 21-01 for Development Permit Type-P 20-10 and 12 Packet Pg. 192 7322 Page 4 Minor Exception 20-01 was continued by the Mayor and City Council to the meeting of May 19, 2021. Setting and Site Characteristics The project site is located at 3191 North E Street, on the southeast corner of North E Street and W. Marshall Boulevard within the Commercial General (CG-1) zone and Transit Overlay District (TD). Table 1, below, provides a summary of the surrounding land use characteristics of the subject site and surrounding properties. TABLE 1: SITE AND SURROUNDING LAND USES LOCATION LAND USE ZONE GENERAL PLAN DESIGNATION Site Vacant Commercial General (CG-1) Commercial North Parking Lot Commercial General (CG-1) Commercial South Residential Commercial General (CG-1) Commercial East Residential Residential Suburban (RS) Single-Family Residential West Retail Commercial General (CG-1) Commercial Analysis The proposed tenant (Dollar General) is classified as a “General Merchandise” retailer pursuant to Table 06.01 (Commercial Zones List of Permitted, Development Permitted, and Conditionally Permitted Uses) of the City of San Bernardin o Development Code. Under the general merchandise classification the user is considered permitted “by-right” within the Commercial General (CG-1) zone. Accordingly, the project is subject only to a Development Permit for entitlement review for the developm ent of the proposed commercial building and associated site improvements. Pursuant to Section 19.44.030 (Applicability and Project Review), non-residential development projects that directly adjoin a residential land use in a residential zone are subject t o approval by the Planning Commission. Based on staff’s analysis, the project meets the Development Standards outlined in the City of San Bernardino Development Code for the Commercial General (CG -1) zone and Transit Overlay District (TD), subject to concurrent approval of the proposed Minor Exception. Architecture The proposed building has integrated a variation of materials incorporating a traditional design. The building incorporates a corniced roof design with varying heights, well-ordered windows and awnings, and a transition of materials around the entire building. The proposed designs use a combination of stucco and brick elements. Further, landscaped trellises have been provided along the street fronting elevations to break up the façade. 12 Packet Pg. 193 7322 Page 5 Access/Site Design/Traffic The project site has direct access from one (1) new driveway located along North E Street and one (1) driveway along W. Marshall Boulevard. The internal site circulation has been designed to adequately accommodate on-site vehicular circulation and access to the off-street parking areas, fueling area, and drive -thru. Designated "paths of travel" have also been provided to ensure pedestrian safety. Finally, the City's Traffic Engineering Division has reviewed the traffic study prepared for proposed project and concluded that the project will have no significant impacts on the surrounding roadways or intersections. The Public Works Department reviewed the traffic scope approval form for the project and determined based on the number of trips generated by the project there will be no impacts since the project will generate less than 50 trips am/pm peak. Landscaping The proposed project will provide all new landscaping along the project site frontages, and shall include additional buffering along the project interior to shield the associated parking area from the adjacent residential uses. Parking Pursuant to Development Code requirements, the proposed commercial development would require a total of thirty-five (35) parking spaces. The proposed project, as designed, includes a total of thirty-two (32) parking spaces. Accordingly, the applicant is requesting approval of a Minor Exception to allow a reduction of on -site parking to provide thirty-two (32) spaces, which is within the 10% threshold permitted under the authority of the Minor Exception. The subject property is located within the Transit Overlay District, directly across the street from the bus stops and two (2) park-and-ride facilities. The purpose of the Transit Overlay District is to encourage an appropriate mix and intensity of land uses in a compact pattern around transit stations that will foster transit usage, create new opportunities for economic growth, encourage in -fill and redevelopment, reduce dependency on the automobile, improve air quality, and promote high quality, interactive neighborhoods. The proximity of the proposed development to the transit facilities will provide additional means to access the subject property thereby reducing the vehicular traffic coming to the property. Additionally, the property has been designed as a 12 Packet Pg. 194 7322 Page 6 pedestrian oriented retail development that will encourage a walkable community by orienting the building entrance along E Street, allowing for a further reduction in the vehicular demand of the property. It should be noted that as a part of the requested reduction in parking facilities, no impact has been proposed that would reduce accessible parking or hinder access to the site for emergency and other City services. General Plan Goals and Policies The City of San Bernardino General Plan includes goals and policies to guide future development within the City, including the following: General Plan Land Use Element Policy 2.2.1: Ensure compatibility between land uses and quality design through adherence to standards and regulations in the Development Code and policies and guidelines in the Community Design Element. 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 Community Design Element Goal 5.4: Ensure individual projects are well designed and maintained. 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 development has been designed with quality architectural treatments. Redevelopment of the site will be done in a manner that will enhance the physical and visual qualities of the subject property through significant landscaping, thereby enhancing the aesthetics area. Additionally, through this proposal the existing propert y 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. 2020-2025 Key Strategic Targets and Goals Development Permit Type-P 20-10 and Minor Exception 21-01 aligns with Key Target No. 3: Improve Quality of Life. The proposed development will create an economic benefit to the surrounding residents and businesses by redeveloping an underutilized parcel, and has been designed to achieve visual interest and a clean, landscaped commercial site. California Environmental Quality Act In accordance with §15060 (Preliminary Review) of the California Environmental Quality Act (CEQA), the Planning Division conducted an environmental evaluation in connection with proposed Development Permit Type-P 20-10 and Minor Exception 21-01 12 Packet Pg. 195 7322 Page 7 (Attachment D), and concluded that the proposed project is exempt under the CEQA Guidelines, as follows: Section 15332 (In-Fill Development Projects) - Development Permit Type-P 20- 10 and Minor Exception 21-01 is categorically exempt due to the fact that: (a) the project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations; (b) the proposed development occurs within city limits on a project site of no more than five (5) acres substantially surrounded by urban uses; (c) the project site has no value as habitat for endangered, rare or threatened species; (d) approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and, (e) the site can be adequately served by all required utilities and public services. Fiscal Impact There is no fiscal impact as a result of adopting this Resolution. Conclusion The proposed development is consistent with the policies of the City’s General Plan and complies with the standards of the City’s Development Code, subject to concurrent approval of the proposed Minor Exception. Therefore, staff recommends Mayor and City Council adopt Resolution No. 2021-101 denying Appeal 21-01, thereby upholding the Planning Commission’s approval of Development Permit Type-P 20-10 and Minor Exception 21-01. Attachments Attachment 1 Resolution No. 2021-101 Attachment 2 Application for Appeal 21-01 Attachment 3 Planning Commission Staff Report and Resolution 2021 -006 dated March 9, 2021 Attachment 4 Minutes for the Planning Commission Meeting of March 9, 2021 Attachment 5 Public Hearing Notice for the Mayor and City Council meeting of May 5, 2021 12 Packet Pg. 196 RESOLUTION NO. 2021-101 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DENYING APPEAL 21-01, THEREBY UPHOLDING THE PLANNING COMMISSION’S ADOPTION OF THE CATEGORICAL EXEMPTION AND APPROVAL OF DEVELOPMENT PERMIT TYPE-P 20-10 AND MINOR EXCEPTION 21-01 ALLOWING THE DEVELOPMENT AND ESTABLISHMENT OF A COMMERCIAL RETAIL BUILDING CONTAINING APPROXIMATELY 10,542 SQUARE FEET WITH A NINE (9%) PERCENT REDUCTION OF THE NUMBER OF REQUIRED OFF-STREET PARKING SPACES FROM 35 TO 32 SPACES ON A PROJECT SITE COMPRISED OF TWO (2) PARCELS CONTAINING A TOTAL OF APPROXIMATELY 0.83 ACRES, LOCATED AT 3191 NORTH E STREET (APN: 0152-163-18 AND 19) WITHIN THE COMMERCIAL GENERAL (CG-1) ZONE WHEREAS, on November 11, 2020, pursuant to the requirements of Chapter 19.44 (Development Permits) of the City of San Bernardino Development Code, an application for Development Permit Type-P 20-10 was duly submitted by: Owner: Eduardo Reyes PDRC Property, Inc. 4066 North 1st Avenue 3592 Rosemead Boulevard #838 San Bernardino, CA 92407 Rosemead, CA 91770 Applicant: NNN Retail Development 15882 Wakefield Lane San Diego, CA 92127 Property Address: 3191 North E Street APN(S): 0152-163-18 and 19 Lot Area: 0.83 acres WHEREAS, Development Permit Type-P 20-10 and Minor Exception 21-01 is a request to allow the development and establishment of a retail building containing approximately 10,542 square feet with a nine (9) percent reduction of the number of required off-street parking spaces from 35 to 32 spaces on a property comprised of two (2) parcels containing a total of approximately 0.83 acres; WHEREAS, the Planning Division of the Community and Economic Development Department has reviewed Development Permit Type-P 20-10 and Minor Exception 21-01 for consistency with the City of San Bernardino General Plan, and compliance with the City of San Bernardino Development Code; WHEREAS, pursuant to the requirements of the California Environmental Quality Act (“CEQA”), the Planning Division of the Community and Economic Development Department 12.a Packet Pg. 197 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 has evaluated Development Permit Type-P 20-10 and Minor Exception 21-01 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; WHEREAS, on February 26, 2021, pursuant to the requirements of Section 19.52.020 (Hearings and Appeals – Application Processing) of the City of San Bernardino Development Code, the City gave public notice by advertising in the San Bernardino Sun, a newspaper of general circulation within the City of San Bernardino, and by mailing notices to the property owners within 500 feet of the subject property of the holding of a public hearing at which Development Permit Type-P 20-10 and Minor Exception 21-01 would be considered; WHEREAS, on March 9, 2021, pursuant to the requirements of Section 19.52.040 (Hearings and Appeals – Hearing Procedures) of the City of San Bernardino Development Code, the Planning Commission held the duly-noticed public hearing at which interested persons had an opportunity to testify in support of, or opposition to, Development Permit Type-P 20-10 and Minor Exception 21-01 and at which meeting the Planning Commission considered Development Permit Type-P 20-10 and Minor Exception 21-01; and WHEREAS, on March 9, 2021, during said duly public hearing, after public testimony and deliberation among the Planning Commissioners, Commissioner Jones made a motion to adopt Resolution No. 2021-006 approving Development Permit Type-P 20-10 and Minor Exception 21-01 based on the Findings of Fact presented, and Commissioner Chang seconded the motion; WHEREAS, the motion carried by the following vote: Ayes: Jones, Lewis and Chang Nays: Quiel and Flores Abstain: None Absent: Guerrero, Lopez, Sanchez and Morales WHEREAS, on March 22, 2021, pursuant to the requirements of Section 19.52.100 (Filing of Appeals) of the City of San Bernardino Development Code, Appeal 21-01 for Development Permit Type-P 20-10 and Minor Exception 21-01 was submitted; WHEREAS, notice of the May 5, 2021 public hearing for the Mayor and City Council's consideration of the proposed Resolution for Appeal 21-01 for Development Permit Type-P 20- 10 and Minor Exception 21-01 was published in The Sun newspaper on April 24, 2021, and was mailed to the owners of property located within a 500 foot radius of the project site in accordance with Chapter 19.52 (Hearings and Appeals) of the City of San Bernardino Development Code; and WHEREAS, on May 5, 2021, pursuant to the requirements of Section 19.52.040 of the City of San Bernardino Development Code, the Mayor and City Council opened and continued 12.a Packet Pg. 198 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 the duly-noticed public hearing for their consideration of Appeal 21-01 for Development Permit Type-P 20-10 and Minor Exception 21-01; WHEREAS, on May 19, 2021, pursuant to the requirements of Section 19.52.040 (Hearings and Appeals – Hearing Procedures) of the City of San Bernardino Development Code, the Mayor and City Council held the duly-noticed public hearing at which interested persons had an opportunity to testify in support of, or opposition to, Appeal 21 -01 for Development Permit Type-P 20-10 and Minor Exception 21-01 and at which meeting the Mayor and City Council considered Appeal 21-01 for Development Permit Type-P 20-10 and Minor Exception 21-01; and WHEREAS, pursuant to the requirements of Chapter 19.52 (Hearings and Appeals), Chapter 19.42 (Development Permits), and Chapter 19.58 (Minor Exceptions) of the City of San Bernardino Development Code, the Mayor and City Council has the authority to take action on Appeal 21-01 for Development Permit Type-P 20-10 and Minor Exception 21-01. 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. Compliance with the California Environmental Quality Act. As the decision-making body for the project, the Mayor and City Council have reviewed and considered the information contained in the administrative record for Development Permit Type-P 20-10 and Minor Exception 21-01. Based upon the facts and information contained in the administrative record, including all written and oral evidence presented to the Mayor and City Council, the Mayor and City Council finds, as follows: (1) The administrative record has been completed in compliance with CEQA, the State CEQA Guidelines, and the City’s Local CEQA Guidelines; (2) The proposed project is categorically exempt from the requirements of the California Environmental Quality Act pursuant to Section 15332 (In-Fill Development Projects) of the CEQA Guidelines; (3) The application of the categorical exemption is not barred by one of the exceptions set forth in the CEQA Guidelines Section 15300.2; and (4) The determination of CEQA exemption reflects the independent judgment of the Mayor and City Council. SECTION 3. Findings of Fact for Development Permit Type-P 20-10. Section 19.44.040 (Findings) of the City of San Bernardino Development Code requires that Development Permit applications meet certain findings prior to their approval by the Planning 12.a Packet Pg. 199 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 Commission. Accordingly, the following findings are provided in support of the recommendation by the Planning Commission for the approval of Development Permit Type-P 20-10: Finding No. 1: The proposed development is permitted within the subject zoning district and complies with all applicable provisions of the Development Code, including prescribed site development standards and applicable design guidelines. Finding of Fact: The proposed development of retail building is a permitted use within the Commercial General (CG-1) zone, subject to the approval of a Development Permit Type-P with the appropriate Conditions of Approval. The proposal under Development Permit Type-P 20-10 will be developed in compliance with all of the applicable provisions of the City of San Bernardino Development Code, including development standards and applicable design guidelines. Finding No. 2: The proposed use is consistent with the General Plan. Finding of Fact: The Commercial General (CG-1) zoning district classification is intended to provide for the continued use, enhancement, and new development of retail, personal service, entertainment, office and related commercial uses along major transportation corridors and intersections to service the needs of the residents; reinforcing existing commercial corridors and centers and establishing new locations as residential growth occurs . The proposed project would allow the development of a commercial retail building containing approximately 10,542 square feet, which is consistent with the existing commercial uses within the project vicinity. The project is also consistent with the following General Plan goal and policies: Policy 5.7.3 requires that new development maintain architectural interest and variety through varied rooflines, building setbacks, and detailed façade treatments, and maintain a strong sense of project identity through similarities in façade organization, signage, landscaping, material use, colors, and roof shapes. The proposed project implements the above General Plan policy in that the proposed development includes a new commercial building that has been designed with high- quality façade treatments which will provide additional architectural interest within the existing neighborhood. Policy 4.1.1 requires that the City seeks out businesses that create jobs and generate sales tax revenue. The proposed project would construct a new commercial retail building that would generate job growth and increase sales tax revenue. 12.a Packet Pg. 200 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 Finding No. 3 The proposed development is harmonious and compatible with existing and future developments within the land use district and general area, as well as the land uses presently on the subject property. Finding of Fact: The proposed development of the commercial retail building 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 General (CG-1) zone. 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. Finding of Fact: In accordance with the California Environmental Quality Act, the Planning Division of the Community Development Department evaluated Development Permit Type-P 20-10 and Minor Exception 21-01, and has determined that is categorically exempt from CEQA Guidelines, pursuant to Section 15332 (In-Fill Development Projects) of the CEQA Guidelines and Conditions of Approval will be imposed to alleviate potential impacts. Therefore, the proposed project site is in compliance with the requirements of CEQA and Section 19.20.030(6) of the Development Code. 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 t ype 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 applicable Development Code Standards. The proposed building meets all setback and height requirements, subject to approval of the associated 12.a Packet Pg. 201 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 variance. The size of the project site is adequate to accommodate the proposed 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 20-10 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 development of the commercial retail building conforms to all applicable development standards and land use regulations of the proposed Commercial General (CG-1) zone, subject to the concurrent approval of the associated Minor Exception. Therefore, the design of the project, in conjunction with the recommended Conditions of Approval, will ensure that the proposal will not create significant noise, traffic, or other conditions or situations that may be objectionable or detrimental to other permitted uses in the vicinity of the site, nor will it be adverse to the public interest, health, safety, convenience or welfare of the City. The location, size, design and character of the proposed development will enhance the neighborhood to the benefit of the public interest and general welfare of the City. SECTION 4. Findings of Fact for Minor Exception 21-01. Section 19.58.50 of the Development Code requires that Minor Exception applications meet certain findings prior to the approval by the Planning Commission. Accordingly, the following findings are provided in support of the approval by the Planning Commission for Minor Exception 21-01: Finding No. 1: That there are special circumstances applicable to the property, including size, shape, topography, location, or surroundings, the strict application of 12.a Packet Pg. 202 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 this Development Code deprives such property of privileges enjoyed by other property in the vicinity and under identical zone classification. Finding of Fact: The subject property is located within the Transit Overlay District, directly across the street from the bus stops and two (2) park-and-ride facilities. The purpose of the Transit Overlay District is to encourage an appropriate mix and intensity of land uses in a compact pattern around transit stations that will foster transit usage, create new opportunities for economic growth, encourage infill and redevelopment, reduce dependency on the automobile, improve air quality, and promote high quality, interactive neighborhoods. The request to reduce the number of on-site parking spaces provided from thirty-five (35) to thirty-two (32) is in conjunction with the pedestrian oriented design that has been implemented to facilitate the intention of the transit overlay. Finding No. 2: That granting the Minor Exception is necessary for the preservation and enjoyment of a substantial property right possessed by other property in the same vicinity and zone and denied to the property for which the Minor Exception is sought. Finding of Fact: The subject property abuts existing residential uses to the east. In considering the design of the project additional landscaped buffering that is not typically required for other commercial developments was included to shield those existing uses and reduce the potential for disturbance to their property. The granting of the requested parking reduction is necessary in order to allow the project the room to provide for the preservation of these existing uses. Finding No. 3: That granting the Minor Exception will not be materially detrimental to the public health, safety, or welfare, or injuries to the property or improvements in such vicinity and zone in which the property is located. Finding of Fact: The proposed reduction to the required parking spaces will not deprive the site from having adequate access to and from the site. Therefore, the project will not have any significant negative impacts upon environmental quality or natural resources and will not be detrimental to the public health, safety, or welfare, or injurious to the project site or improvements in such vicinity and zone in which the project site is located. Finding No. 4: That granting the Minor Exception does not constitute a special privilege inconsistent with the limitations upon other properties in the vicinity and zone in which such property is located. Finding of Fact: The design of the proposed project will be consistent with the provisions of the Transit Overlay District in that it will encourage other means of accessing the property and reduce dependency on the automobile. The 12.a Packet Pg. 203 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 proposed reduction to the provide parking would not constitute a special privilege that would not otherwise be applicable to other commercial development within the Transit Overlay District. Finding No. 5: That granting the Minor Exception does not exceed 10% of the standard(s) being modified, or allow a use or activity which is not otherwise expressly authorized by the regulations governing the subject parcel. Finding of Fact: The Minor Exception is requested for a reduction in the required number of parking spaces only. The proposed reduction of three (3) parking spaces from the required thirty-five (35), within the Commercial General (CG-1) zone, does not exceed ten percent (10%) of the standard being modified. Additionally, the proposed uses are within the authorized land use designation governing the proposed project site. Finding No. 6: That granting the Minor Exception will not be inconsistent with the General Plan. Finding of Fact: The proposed project is consistent with General Plan goals and policies. General Plan Land Use Policy 2.1.1 states: “Actively enforce development standards, design guidelines, and policies to preserve and enhance the character of San Bernardino’s neighborhoods.” The proposed project would allow for the applicant to develop a new commercial retail building while adhering to the development standards intended to buffer the surrounding residential uses. Therefore, the proposed project would be compatible with surrounding land uses and consistent with the General Plan. SECTION 5. Conditions of Approval. The approval of Development Permit Type-D 20-10 and Minor Exception 21-01 shall be subject to the following Conditions of Approval: 1. This approval is to allow the development and establishment of a commercial retail building containing approximately 10,542 square feet with a nine (9%) percent reduction of the number of required off-street parking spaces from 35 to 32 spaces on a project site comprised of two (2) parcels containing a total of approximately 0.83 acres. The project site is located at 3191 North E Street, San Bernardino, CA 92405 (APN(S): 0152-163-18 and 19). 2. The project site shall be developed and maintained in accordance with: (i) the plans stamped May 5, 2021 (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 12.a Packet Pg. 204 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 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: May 19, 2023 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 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. 12.a Packet Pg. 205 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 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 exterior lighting shall be contained within property lines and be energy efficient, with the option to lower or reduce usage when the facility is closed. 15. Submittal requirements for permit applications (site improvements, landscaping, etc.) to Building Plan Check and/or Land Development must include all Conditions of Approval issued with this approval, printed on the plan sheets. 16. The project shall construct an 8 foot tall block wall between the project site and any adjacent residential properties. 17. All conditions of the Public Works Department shall be met to the satisfaction of the City Engineer. 18. 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. Building & Safety Division 19. All plans submitted shall conform to the California Building Code (2019). Please note that this will include the California Green Building Standards Code. 20. Project shall conform to chapter 3 of the California Building Code (2019). 21. Project shall also conform to the requirements of Chapter 4 of the California Building Code (2019), Special Details Requirements Based on Use of Occupancy. 12.a Packet Pg. 206 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 22. Provide sprinkler requirements for the occupant load according to California Building Code (2019). 23. Provide all disabled access requirements and complete details on plans prior to plan review submittal and conform to Chapter 11A of the California Building Code (2019). 24. There shall be a formal plan submittal prior to all issuance of permits. 25. Refer to chapter 7 of the California Building Code (2019) for Fire/Smoke Protection Requirements. Public Works Department 26. Drainage and Flood Control a) A local drainage study will be required for the project. Any drainage improvements, structures or storm drains needed to mitigate downstream impacts or protect the development shall be designed and constructed at the developer's expense, and right-of- way dedicated as necessary. b) The development is located within Zone X of the Federal Insurance Rate Maps on booklet # 06071C7945H with year 08/28/2008. c) All drainage from the development shall be directed to an approved public drainage facility. If not feasible, proper drainage facilities and easements shall be provided to the satisfaction of the City Engineer. d) If site drainage is to be outlet into the public street, the drainage shall be conveyed through a parkway culvert constructed in accordance with City Standard No. 400. Conveyance of site drainage over the Driveway approaches will not be permitted. e) A Preliminary Full-Categorical Water Quality Management Plan (WQMP) has been conceptually approved with minor comments to incorporate into the Final WQMP Plan. Comments will be provided to the Engineer. f) A Final Full-Categorical Water Quality Management Plan (WQMP) is required for this project. The applicant is directed to the County of San Bernardino’s Flood Control web page for the template and Technical Guidance Document. The Land Development Division, prior to issuance of any permit, shall approve the WQMP. A CD copy of the approved WQMP is required prior to grading permit issuance. g) The Land Development Division, prior to grading plan approval, shall approve an Erosion Control Plan. The plan shall be designed to control erosion due to water and wind, including blowing dust, during all phases of construction, including graded areas which are not proposed to be immediately built upon. 27. Grading and Landscaping a) The grading and on-site improvement plan shall be signed by a Registered Civil Engineer and a grading permit will be required. The grading plan shall be prepared in strict accordance with the City's "Grading Policies and Procedures" and the City's "Standard Drawings", unless otherwise approved by the Building Official. 12.a Packet Pg. 207 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 b) If the grading plan indicates export or import, the source of the import material or the site for the deposition of the export shall be noted on the grading plan. Permit numbers shall be noted if the source or destination is in the City of San Bernardino. c) If more than 50 cubic yards of earth is to be hauled on City Streets then a special hauling permit shall be obtained from the City Engineer. Additional conditions, such as truck route approval, traffic controls, bonding, covering of loads, street cleaning, etc. may be required by the City Engineer. d) Wheel stops are not permitted by the Development Code, except at designated accessible parking spaces. Therefore, continuous 6” high curb shall be used around planter areas and areas where head in parking is adjacent to walkways. The parking spaces may be 16.5’ deep and may overhang the landscaping or walkway by 2.5’. Overhang into the setback area or into an ADA path of travel (minimum 4’ wide) is not permitted. e) Continuous concrete curbing at least 6 inches high and 6 inches wide shall be provided at least 3 feet from any wall, fence, property line, walkway, or structure where parking and/or drive aisles are located adjacent thereto. Curbing may be left out at structure access points. The space between the curb and wall, fence, property line, walkway or structure shall be landscaped, except as allowed by the Development Review Committee. f) The refuse enclosure(s) shall be constructed in accordance with City Standard Drawing No. 508 with an accessible path of travel. The minimum size of the refuse enclosure shall be 8 feet x 15 feet for bins storage area. Where a refuse enclosure is proposed to be constructed adjacent to spaces for parking passenger vehicles, a 3’ wide by 6 “ high concrete planter shall be provided to separate the enclosure from the adjacent parking. The placement of the enclosure and design of the planter shall preclude the enclosure doors from opening into drive aisles or impacting against adjacent parked cars. g) Retaining walls, block walls and all on-site fencing shall be designed and detailed on the 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. h) No construction on a site shall begin before a temporary/security fence is in place and approved by the Building Official or his designee. Temporary/security fencing may not be removed until approved by the Building Official or his designee. The owner or owner’s agent shall immediately remove the temporary/security fencing upon the approval of the Building Official or his designee. Sites that contain multiple buildings shall maintain the temporary/security fencing around the portion of the site and buildings under construction as determined by the Building Official or his designee. All temporary/security fencing for construction sites shall include screening, emergency identification and safety identification and shall be kept in neat and undamaged condition. i) The on-site improvement plan shall include details of on-site lighting, including light location, type of poles and fixtures, foundation design with structural calculations, conduit location, material and size, and photometric plot shall be provided which show that the proposed on-site lighting design will provide:  1 foot-candle of illumination uniformly distributed over the surface of the parking lot during hours of operation, and 12.a Packet Pg. 208 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101  0.25 foot-candles security lighting during all other hours. j) 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. k) 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. l) 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. m) The public right-of-way, between the property line and top of curb (also known as “parkway”) along adjoining streets shall be landscaped by the developer and maintained in perpetuity by the property owner. Details of the parkway landscaping shall be included in the project’s on-site landscape plan. n) A Demolition Permit is required for the demolition of the existing structures on the project site. A record of the square-footage for each of the structures shall be recorded for credit towards the Impact Fees. o) 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 http://www.sbcity.org – Departments – Public Works – Submittal Requirements for submittal requirements. 28. On-Site Utilities a) Design and construct all public utilities to serve the site in accordance with City Code, City Standards and requirements of the serving utility, including gas, electric, telephone, water, sewer and cable TV (Cable TV optional for commercial, industrial, or institutional uses). b) The project site shall be provided with separate water and sewer facilities so the City or the agency providing such services in the area can serve it. c) Backflow preventers shall be installed for any building with the finished floor elevation below the rim elevation of the nearest upstream manhole. d) This project is located in the sewer service area maintained by the City of San Bernardino Municipal Water Department. Therefore, any necessary sewer main extension shall be designed and constructed in accordance to the requirements of SBMWD. e) All on-site Utility services shall be placed underground and easements provided as required. f) Existing on-site Utilities which interfere with new construction shall be relocated at the Developer's expense as directed by the City Engineer. 29. 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 12.a Packet Pg. 209 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 property line and placement of the cu rb line (C.L.) in relation to the street centerline shall be as follows: Street Name Right of Way (feet) From Centerline Curb Line (feet) From Centerline “E” Street (0152-163-19) 41.25’ Existing 8.75’ Dedication for a total ½ width of 50’ “Major Arterial” 32’ Existing None-Proposed (Future 36’ to 40’) Per General Plan Marshall Boulevard (0152-163-18 and 0152-163-19) 50’ Existing No Dedication for a total ½ width of 50’ “Major Arterial” 32’ Existing None-Proposed (Future 36’ to 40’) Per General Plan b) “E” Street: 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. The City’s has a minimum of 2” Grind and Overlay; However the Soils Report may indicate a thicker or different improvement. ii) All striping shall be thermoplastic paint per section 84 of the Caltrans specifications. iii) The existing curb & gutter, sidewalk, and driveway fronting the site has areas in need of repair or do not meet the current ADA requirements, Replace the damaged, cracked problem panels per city requirements. iv) Remove existing driveways that are not being used under the project plans and replace with Curb Gutter and Sidewalk per city Standards. v) The corner shall be a 35’ Radius including a compliant ADA ramp with By-Pass and Truncated Domes, as directed by the City Engineer. 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, as directed by the City Engineer. vii) Construct Commercial Driveway Approach per City Standard No. 204, Type II, including an accessible by-pass around the top of the drive approach. No Driveways closer than 100’ from BCR/ECR as directed by the City Engineer. viii) When Replacing/Reconstructing Curb and Gutter panels, Construct 8" Curb and Gutter per City Standard No. 200, type “B”. ix) Construct 8" Curb transition from existing to match new curb and gutter for approach or departure traffic safety and drainage as approved by the City Engineer. x) When Replacing or reconstructing Sidewalk panels, Construct Sidewalk per City Standard No. 202; Case "A" (6’ wide adjacent to curb). xi) Remove existing streetlights from SCE, as directed by City Engineer. xii) Install LED Street Lights System adjacent to the site in accordance with City 12.a Packet Pg. 210 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 Standard No’s. SL-1, SL-2, and SL-3. Also, a separate light plan shall be submitted in accordance with the City of San Bernardino Street Lighting Design Policies. Install ID Plate on Street light pole. Connect to Existing Street Light System, as Directed by City Traffic Engineer. xiii) No Parking will be allowed on “E” Street, install signs per city standards xiv) 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 to California Land Surveyors Association – Monument Preservation Guidelines, Copies of Recorded Monuments/Ties shall be delivered to Public Works/Engineering. Marshall Boulevard: xv) The street is in fair condition and no ac improvements are needed at this time. xvi) Should striping be needed, All striping shall be thermoplastic paint per section 84 of the Caltrans specifications. xvii) The existing curb & gutter, sidewalk, and driveway fronting the site has areas in need of repair or do not meet the current ADA requirements, Replace the damaged, cracked problem panels per city requirements. xviii) Remove existing driveways that are not being used under the project plans and replace with Curb Gutter and Sidewalk per city Standards. xix) The corner shall be a 35’ Radius including a compliant ADA ramp with By-Pass and Truncated Domes, as directed by the City Engineer. xx) Construct Commercial Driveway Approach per City Standard No. 204, Type II, including an accessible by-pass around the top of the drive approach. No Driveways closer than 100’ from BCR/ECR as directed by the City Engineer. xxi) When Replacing/Reconstructing Curb and Gutter panels, Construct 8" Curb and Gutter per City Standard No. 200, type “B”. xxii) When Replacing or reconstructing Sidewalk panels, Construct Sidewalk per City Standard No. 202; Case "A" (6’ wide adjacent to curb). xxiii) An ADA Ramp shall be constructed at corner in accordance with the SPPWC (Standard Plans for Public Works Construction) or Caltrans Standard plans A88A, as directed by the City Engineer. xxiv) Remove existing streetlights from SCE, as directed by City Engineer and Install LED Street Lights System adjacent to the site in accordance with City Standard No’s. SL-1, SL-2, and SL-3. Also, a separate light plan shall be submitted in accordance with the City of San Bernardino Street Lighting Design Policies. Install ID Plate on Street light pole. Connect to Existing Street Light System. xxv) Underground existing Poles, as directed by City Engineer. xxvi) Remove or Underground existing non-electrical (Non-SCE) Poles, as directed by the City Engineer. xxvii) Utility poles shall be relocated to 2’ behind face of curb, if the pole is in a sidewalk area an ADA minimum 4’ by-pass is required. xxviii) No Parking will be allowed on Marshall Boulevard, install signs per city 12.a Packet Pg. 211 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 standards xxix) 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 to 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 indicated the need of a Traffic Report, the results of the traffic report shall become conditions of this project which may increase or extend the above requirements in section 1(b) and 5(a). c) With Submittal of improvement plans including but not limited to grading plans, Street improvement plans, storm drain and retention/detention basin plans, and erosion/sediment control plans, The Applicant shall cause to be formed, or shall be annexed into an existing, Community Facilities District(s) (CFD) for landscaping, lighting, streets, drainage facilities, street sweeping, graffiti removal, or other infrastructure as required by the City to the satisfaction of the City Engineer. The Applicant shall initiate the maintenance and benefit assessment district(s) formation, or annexation, by submitting a landowner petition and consent form (provided by the City) and deposited necessary fees concurrent with the application for street and grading plan review and approval; and said maintenance and benefit assessment district(s) shall be established concurrent with the approval of the final map in the case of the subdivision of land, or prior issuance of any certificate of occupancy where there is no subdivision of land, and as approved by the City Engineer. d) If a drainage report is required by Land Development, A second copy of the drainage report will be delivered to public works, if offsite or overflow storm drain systems are identified, all systems shall be identified on the street improvement plans, and public storm drain shall be on a separate set of plans. e) A temporary construction encroachment permit from Public Works Department shall be required for utility cuts into existing streets or any work within City’s right -of-way. Pavement restoration or trench repair shall be in conformance with City Standard No. 310. Public facilities shall be restored or constructed back to Public Works Department satisfaction. f) Any pavement works affecting the traffic loop detectors shall be coordinated and subjected to Public Works Traffic Division requirements. g) The applicant must post a performance bond prior to issuance of the off-site permit. The amount of the bond is to be determined by Public Works Department. h) The above conditions shall comply with current codes, policies, and standards at time of construction. i) Prior to Certificate of Occupancy or Completion of Project all As-builts shall be submitted to Public Works. 12.a Packet Pg. 212 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 30. Traffic Requirements a) Public Works reviewed the traffic scope approval form and determined based on the number of trips generated by the project there will be no impacts since the project will generate less than 50 trips am/pm peak. The Vehicle Miles Traveled (VMT) screening will not require a detailed screening analysis since the project type screening is local serving project that is less than 50,000 square feet. 31. Integrated Solid Waste Management a) During demolition and/or construction, services are to be provided through the City of San Bernardino’s exclusive franchised hauler Burrtec Waste Industries, Inc. b) The Site Plan dated 10/28/20 identifies a single refuse enclosure located i n the southeast corner of the property. It is accessed by a looped driveway with a minimum width of 26 feet. The proposed enclosure location meets Burrtec Waste minimum requirements for location and accessibility. c) The refuse enclosure dimensions are not provided. Meet or exceed the City’s Standard Plan 508 Refuse Enclosure minimum interior dimensions of 8’x15’ for container storage. d) Consult with the Building & Safety Division regarding any required ADA modifications to be made to the refuse enclosure. The minimum interior dimensions of 8’x15’ for container storage must still be met. e) Standard commercial collection services for trash and mixed recyclables will be provided. Should participation in a food waste recycling program be required per Assembly Bill 1826, one or more containers for food waste may be needed. f) PLEASE NOTE: Any changes to the overall project design, enclosure specifications, location, or access may adversely impact the City franchised hauler’s ability to provide service. Any design modifications that could impact service are subject to review and approval. g) If gated provide access by means of a key, code, or remote. h) Assembly Bill 341 Mandatory Commercial Recycling may apply. i) Assembly Bill 1826 Mandatory Commercial Organics Recycling may apply. j) Upon completion, service is provided through the City of San Bernardino’s exclusive franchised hauler Burrtec Waste Industries, Inc. 32. 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 a separate plan sheets included in the street improvement plans (if required by conditions or traffic reports), 12.a Packet Pg. 213 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101  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.  lighting (on-site lighting may be included in on-site improvement plan or may be on a separate stand-alone plan),  grading (may be incorporated with on-site improvement plan and demolition plan),  on-site improvement plans and on-site landscaping and irrigation,  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 satisfactory to the City Engineer or his designee shall be provided. c) After completion of plan checking, final mylar drawings, stamped and signed by the Registered Civil Engineer in charge, shall be submitted to the City Engineer and/or Building Official for approval. d) 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 33. Required Engineering Permits a) Grading permit. b) On-site improvements construction permit (except buildings - see Community and Economic Development Department – Building and Safety Division), including landscaping. c) Off-site improvement construction permit. d) Demolition permit shall be processed through Building and Safety. 34. 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 12.a Packet Pg. 214 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 San Bernardino County Consolidated Fire District 35. Access. The development shall have a minimum of two (2) 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. 36. 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. 37. Building Plans. Building plans shall be submitted to the Fire Department for review and approval. 38. Combustible Protection. Prior to combustibles being placed on the project site an approved all-weather fire apparatus access surface and operable fire hydrants with acceptable fire flow shall be installed. The topcoat of asphalt does not have to be installed until final inspection and occupancy. 39. 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. 40. Fire Alarm - Automatic. An automatic fire sprinkler monitoring fire alarm system complying with the California Fire Code, NFPA and all applicable codes is required. The applicant shall hire a Fire Department approved fire alarm contractor. The fire alarm contractor shall submit detailed plans to the Fire Department for review and approval. The required fees shall be paid at the time of plan submittal. 41. Fire Extinguishers. Hand portable fire extinguishers are required. The location, type, and cabinet design shall be approved by the Fire Department. 42. Fire Lanes. The applicant shall submit a fire lane plan to the Fire Department for review and approval. Fire lane curbs shall be painted red. The "No Parking, Fire Lane" signs shall be installed on public/private roads in accordance with the approved plan. 12.a Packet Pg. 215 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 43. Fire Safety Overlay. The County General Plan designates this property as being within the Fire Safety Review Area and all future construction shall adhere to all applicable standards and requirements of the overlay district. 44. 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 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. 45. 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”. 46. 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. 47. 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. 48. Permit Expiration. Construction permits, including Fire Condition Letters, shall automatically expire and become invalid unless the work authorized by such permit is commenced within 180 days after its issuance, or if the work authorized by such permit is suspended or abandoned for a period of 180 days after the time the work is commenced. Suspension or abandonment shall mean that no inspection by the Department has occurred with 180 days of any previous inspection. After a construction permit or Fire Condition Letter, becomes invalid and before such previously approved work recommences, a new permit shall be first obtained and the fee to recommence work shall be one-half the fee for the new permit for such work, provided no changes have been made or will be made in the original construction documents for such work, and provided further that such suspension or abandonment has not exceeded one year. A request to extend the Fire Condition Letter or Permit may be made in writing PRIOR TO the expiration date justifying the reason that the Fire Condition Letter should be extended. 49. 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. 12.a Packet Pg. 216 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 50. 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. 51. Solar / Photovoltaic System Plans. Plans shall be submitted online through EZOP to the Fire Department for review and approval. Plans must be submitted and approved prior to Conditional Compliance Release of Building. 52. The project shall be subject to the following Fire Department Standards: a) Standard A-1 FIRE APPARATUS ACCESS ROAD DESIGN, CONSTRUCTION AND MAINTENANCE – This standard shall apply to the design, construction and maintenance of all new fire apparatus access roads within the jurisdiction, as well as fire apparatus access roads at existing facilities when applied at the discretion of the fire code official. b) Standard A-2 FIRE APPARATUS ACCESS ROAD DESIGNATION AND MARKING – This standard applies to the marking of all Fire Department access roadways for new construction and development. Existing roadways identified as fire access roadways or otherwise required for emergency access shall also be marked per this standard. c) Standard A-4 FIRE DEPARTMENT ACCESS KEY BOXES – This standard shall apply to all fire personnel access key boxes on all new and existing residential, commercial, and industrial developments and structures as determined by the Fire Code Official using the criteria set forth in this standard. d) Standard B-1 PREMISE AND BUILDING IDENTIFICATION AND ADDRESSING – This standard applies to the marking of all buildings with address numbers for identification. e) Standard B-2 CONSTRUCTION SITE FIRE SAFETY – This standard establishes minimum requirements for fire safety during construction and demolition. This document shall not be construed to be in lieu of any other applicable State or Federal law or regulation related to construction site safety. The general contractor or other designee of the building owner shall be responsible for compliance with these standards. f) Standard F-1 FIRE SPRINKLER SYSTEMS IN COMMERCIAL AND INDUSTRIAL BUILDINGS – This standard, in conjunction with the latest edition of NFPA 13, shall apply to the design and installation of, and the modification to, all fire sprinkler systems in commercial and industrial occupancies. This standard and its interpretation is not intended to be applied or enforced where there is any conflict with NFPA 13 or the California Fire Code. g) Standard F-4 POST INDICATOR VALVES AND FIRE DEPARTMENT CONNECTIONS – This standard, in conjunction with the latest edition of NFPA 13, NFPA 13R and NFPA 24, shall apply to the design and installation of, and the modification to, all new and existing fire sprinkler systems in commercial and industrial buildings and multi-family dwellings. This standard and its interpretation shall take NOT precedent where there is any conflict with NFPA standards. 12.a Packet Pg. 217 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 h) Standard F-5 DESIGN, INSTALLATION, AND MAINTENANCE OF FIRE ALARM SYSTEMS – This standard applies to all new installations and modifications of existing fire alarm systems, within new construction as well as building additions and tenant improvements within existing buildings. This standard and its interpretation is not intended to be applied or enforced where there is any conflict with NFPA 72 or the California Fire Code. 53. Surface. Fire apparatus access roads shall be designed and maintained to support the imposed loads of fire apparatus and shall be surfaced so as to provide all-weather driving capabilities. Road surface shall meet the approval of the Fire Chief prior to installation. All roads shall be designed to 85% compaction and/or paving and hold the weight of Fire Apparatus at a minimum of 80K pounds. 54. Turnaround. An approved turnaround shall be provided at the end of each roadway one hundred and fifty (150) feet or more in length. Cul-de-sac length shall not exceed six hundred (600) feet; all roadways shall not exceed a 12 % grade and have a minimum of forty-five (45) foot radius for all turns. In the Fire Safety Overlay District areas, there are additional requirements. 55. 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 Determination: The Planning Division of the Community and Economic Development Department is hereby directed to file a Notice of Determination with the County Clerk of the County of San Bernardino within five (5) working days of final project approval certifying the City’s compliance with the California Environmental Quality Act in approving the Project. SECTION 7. Severability: If any section, subsection, subdivision, sentence, or clause or phrase in this Ordinance or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that an y one or more subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. SECTION 8. Effective Date. This Resolution shall become effective immediately. 12.a Packet Pg. 218 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of _________, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 12.a Packet Pg. 219 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Resolution No. 2021-101 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021- , adopted by the City Council of the City of San Bernardino, California, at a regular meeting held at the ___ day of _________, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ IBARRA FIGUEROA SHORETT REYNOSO CALVIN ALEXANDER WITNESS my hand and official seal of the City of San Bernardino this ___ day of _________, 2021. Genoveva Rocha, CMC, City Clerk 12.a Packet Pg. 220 Attachment: Attachment 1 - Resolution 2021-101 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) 76' x 140'10640 SF Prototype E+HVAC On RoofPROPOSED PARCEL(0.83 AC)W. MARSHALL BLVD.NORTH E. STREET 1 2 2 7 ' 1227'1226'1225'1225'1224'1224'1223' 1 2 2 6 ' 1227'1227'1227'1228' 1227'1228'1227'1226'1226'1225'GRADING PLAN2 OF 3A.M.R.10/12/20D.C.DOLLAR GENERALSAN BERNARDINO,CA.3191 N. E. STREET010'20'40'Scale: 1" = 20'Cut/Fill SummaryNameSurface5TotalsCut Factor1.000Fill Factor1.2502d Area33374.35 Sq. Ft.33374.35 Sq. Ft.Cut819.61 Cu. Yd.819.61 Cu. Yd.Fill72.23 Cu. Yd.72.23 Cu. Yd.Net747.38 Cu. Yd.<Cut>747.38 Cu. Yd.<Cut>12.bPacket Pg. 221Attachment: Attachment 2 - Resolution 2021-101; Exhibit A (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) 76' x 140' 10640 SF Prototype E+ HVAC On Roof PROPOSED PARCEL (0.83 AC) W. MARSHALL BLVD.NORTH E. STREETBUILDING SETBACKS: FRONT:10' SIDE: 0' REAR:0' REQUIRED PARKING: 1 SPACE PER 300 SQ FT 10542/ 300 = 35.14 SPACES 32 SPACES PROVIDED MINIMUM DIMENSIONS DRIVE AISLE REQUIRED: 26' STD. STALLS: 9 'X 19' JURISDICTION: CITY OF SAN BERNARDINO, CA HEAVY DUTY AC LIGHT DUTY AC LANDSCAPE LEGEND: SCALE:1"=50' DESIGNER CO.: NAME: PHONE #: ACREAGE: REQ'D. PARKING SPACES: DEVELOPER NAME: PHONE #: CO.:NNN RETAIL DEVELOPMENT DATE: BLDG/SALES SF: PROTOTYPE: 858-354-0007 DAVID CHURCH 35 10,640 /8,513 NORTH3191 N E ST, SAN BERNARDINO, CA 92405 0.83 10640 E + NNN RETAIL DEVELOPMENT 858-354-0007 DAVID CHURCH 10-28-20 1.Site layout based on aerial data only. Lot lines and property dimensions need to be verified by ALTA/ACSM survey. 2.Landscape, utility, drainage, and signage requirements have not been reviewed. 3.Current zoning is: CG-1 NOTES & ISSUES: HEAVY DUTY PCC PRELIMINARY SITE PLAN 12.b Packet Pg. 222 Attachment: Attachment 2 - Resolution 2021-101; Exhibit A (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) SODACOOLERSODA COOLER SNACK SHACK STARBUCKS COOLERS 21 SAFE PS PS 3 PS 24" FL-35WC MT DEW VR-10 COKE FL-35WC PEPSI CHECKOUT SCENARIO SC10 QUEUE LONG LEFT NO BELT 21 SAFE PS PS 3 PS 24" FL-35WC MT DEW VR-10 COKE FL-35WC PEPSI CHECKOUT SCENARIO SC10 QUEUE LONG LEFT NO BELTGATORADECOOLERFROZENSINGLE SERVENESTLE2A24A23A21A2CONC. SIDEWALK, SEESITE PLANDECORATIVE TRELLIS140'-8"76'-8"WALL-MOUNTEDELECTRICAL SERVICEDECORATIVE TRELLISDECORATIVE TRELLISCMU COLUMN AT ENTRYRECESSED ENTRY W/ALUMINUM STOREFRONTSALES FLOOR EGRESS DOORRECEIVINGAREA DOORDECORATIVE TRELLISDECORATIVETRELLISKM Architecture, Inc.A Full Service Architectural Practice3987 Missouri Flat Road, Suite 340-345Placerville, CA 95667(530)344-4073These drawings are instruments of service and are the property of KMStudios. All designs and other information on the drawings are for the useon the specified project and shall not be used otherwise without theexpressed written permission of KM Studios.Written dimensions on these drawings shall have precedence over scaleddimensions. Contractors shall verify and be responsible for all dimensionand conditions on the job site, and this office shall be notified of anyvariations from the dimensions and conditions as shown on these drawings.Copyrighted _______________________________________________________________SAN BERNARDINO3191 N E STSAN BERNARDINO, CA 92405kMarchitectureDESIGN CONCEPTFORDOLLAR GENERALKM Architecture, Inc. 2020 All Rights ReservedALL DRAWINGS AND WRITTEN MATERIAL APPEARING HEREIN CONSTITUTE ORIGINAL AND UNPUBLISHED WORK OF KM ARCHITECTURE, INC. AND MAY NOT BE DUPLICATED WITHOUT WRITTEN CONSENT OF KM ARCHITECTURE, INC.SCALE:1/8"=1'-0"FLOOR PLAN1A1FLOOR PLANA1NORTH12.bPacket Pg. 223Attachment: Attachment 2 - Resolution 2021-101; Exhibit A (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) EIFS/STUCCO FINISHCHANNEL LETTERBUILDING SIGNSPLIT FACE CMUWAINSCOT, TYP.ADDRESS #DBACDBAC654321654321SPLIT FACE CMUPILASTERRTU BEYONDDECORATIVE EPSCORNICEWALL MOUNTED AREALIGHT WITH TENONWALL MOUNTED AREALIGHT WITH TENONDOWNSPOUT, PAINTED TOMATCH ADJACENT WALLCOPING TO MATCHADJACENT WALLEIFS/ STUCCO FINISHRECESSED ENTRANCE W/ALUMINUM STOREFRONTSPLIT FACE CMUWAINSCOT, TYP.EIFS/ STUCCO FINISHCHANNEL LETTERBUILDING SIGNDECORATIVE TRELLIS TOSUPPORT VINE PLANTINGS, TYP(2) THIS ELEVATIONWOOD AWNING TRELLISADDRESS #WOOD AWNING TRELLISDECORATIVE TRELLIS TOSUPPORT VINE PLANTINGSWOOD AWNING TRELLISELEC.TELKM Architecture, Inc.A Full Service Architectural Practice3987 Missouri Flat Road, Suite 340-345Placerville, CA 95667(530)344-4073These drawings are instruments of service and are the property of KMStudios. All designs and other information on the drawings are for the useon the specified project and shall not be used otherwise without theexpressed written permission of KM Studios.Written dimensions on these drawings shall have precedence over scaleddimensions. Contractors shall verify and be responsible for all dimensionand conditions on the job site, and this office shall be notified of anyvariations from the dimensions and conditions as shown on these drawings.Copyrighted _______________________________________________________________SAN BERNARDINO3191 N E STSAN BERNARDINO, CA 92405kMarchitectureDESIGN CONCEPTFORDOLLAR GENERALKM Architecture, Inc. 2020 All Rights ReservedALL DRAWINGS AND WRITTEN MATERIAL APPEARING HEREIN CONSTITUTE ORIGINAL AND UNPUBLISHED WORK OF KM ARCHITECTURE, INC. AND MAY NOT BE DUPLICATED WITHOUT WRITTEN CONSENT OF KM ARCHITECTURE, INC.SCALE:1/8"=1'-0"SOUTH ELEVATION1A2SCALE:1/8"=1'-0"NORTH ELEVATION2A2SCALE:1/8"=1'-0"EAST ELEVATION3A2SCALE:1/8"=1'-0"WEST ELEVATION4A2EXTERIOR ELEVATIONSA212.bPacket Pg. 224Attachment: Attachment 2 - Resolution 2021-101; Exhibit A (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) Anodized Aluminum Entry Door Split Face CMU EIFS/ STUCCO - Color 3 Color: SHERWIN-WILLIAMS - Light Stone EIFS/ STUCCO - Color 2 Color: SHERWIN-WILLIAMS - Backdrop EIFS/ STUCCO - Color 1 Color: SHERWIN-WILLIAMS - Well-Bred Brown ADDRESS # D B AC DBAC 6 5 4 3 2 1 654321 ADDRESS # ELEC. TEL KM Architecture, Inc. A Full Service Architectural Practice 3987 Missouri Flat Road, Suite 340-345 Placerville, CA 95667 (530)344-4073 These drawings are instruments of service and are the property of KM Studios. All designs and other information on the drawings are for the use on the specified project and shall not be used otherwise without the expressed written permission of KM Studios. Written dimensions on these drawings shall have precedence over scaled dimensions. Contractors shall verify and be responsible for all dimension and conditions on the job site, and this office shall be notified of any variations from the dimensions and conditions as shown on these drawings. Copyrighted _______________________________________________________________ SAN BERNARDINO 3191 N E ST SAN BERNARDINO, CA 92405 kMarchitecture DESIGN CONCEPT FOR DOLLAR GENERAL KM Architecture, Inc. 2020 All Rights ReservedALL DRAWINGS AND WRITTEN MATERIAL APPEARING HEREIN CONSTITUTE ORIGINAL AND UNPUBLISHED WORK OF KM ARCHITECTURE, INC. AND MAY NOT BE DUPLICATED WITHOUT WRITTEN CONSENT OF KM ARCHITECTURE, INC.SCALE:1/8"=1'-0" SOUTH ELEVATION1 A2 SCALE:1/8"=1'-0" NORTH ELEVATION2 A2 SCALE:1/8"=1'-0" EAST ELEVATION3 A2 SCALE:1/8"=1'-0" WEST ELEVATION4 A2 EXTERIOR COLOR ELEVATIONS A3 12.b Packet Pg. 225 Attachment: Attachment 2 - Resolution 2021-101; Exhibit A (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) 12.b Packet Pg. 226 Attachment: Attachment 2 - Resolution 2021-101; Exhibit A (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) 12.c Packet Pg. 227 Attachment: Attachment 3 - Application for Appeal 21-01 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) 12.c Packet Pg. 228 Attachment: Attachment 3 - Application for Appeal 21-01 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) 12.c Packet Pg. 229 Attachment: Attachment 3 - Application for Appeal 21-01 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) 12.c Packet Pg. 230 Attachment: Attachment 3 - Application for Appeal 21-01 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) 12.c Packet Pg. 231 Attachment: Attachment 3 - Application for Appeal 21-01 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) 12.c Packet Pg. 232 Attachment: Attachment 3 - Application for Appeal 21-01 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) 12.c Packet Pg. 233 Attachment: Attachment 3 - Application for Appeal 21-01 (7322 : Appeal 21-01 for DP-P 20-10 & ME 21-01 (Ward 7)) 12.d Packet Pg. 234 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 235 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 236 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 237 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 238 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 239 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 240 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 241 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 242 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 243 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 244 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 245 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 246 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 247 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 248 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 249 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 250 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 251 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 252 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 253 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 254 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 255 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 256 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 257 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 258 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20- 12.d Packet Pg. 259 Attachment: Attachment 4 - Planning Commission Staff Report and Resolution 2021-006 dated March 9, 2021 (7322 : Appeal 21-01 for DP-P 20-