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HomeMy WebLinkAboutSewer Revenue Bonds 10/9/1956OFFICIAL STATEMENT AND • NOTICE OF SALE c.., r P4 63maGt4 ...-_-_....xas& _ t , CITY-TOF FONTANA _ _. . .. - S..AN BERNARDINO- COUNTY, CALIFORNIA' $2,655,000 SEWER REVENUE. BONDS :DTEDSALE- ODDilER '9, 1956' _ . TE, = - • • CITY COUNCIL MILTON W. LEETZOW, MAYOR EUGENE A. CONLON MORRIS A. MEADE KENNETH SUFFICOOL JACK BULIK * CITY ADMINISTRATOR, DOYLE MILLER CITY CLERK, GEORGE W. VIERRA CITY TREASURER, MICHAEL J. MICALLEF CITY ENGINEERS, JOHNBDN & LOCKWOOD CITY ATTORNEY, HENRY RACIER CONSULTING ENGINEERS -i FOULKE, CRIST & BRODIE BAN BERNARDINO, CALIFORNIA BOND COUNSEL D'MELVENY & MEYERS LOS ANGELES, CALIFORNIA * FINANCIAL CONSULTANTS J. B. HANAUER & CO. BEVERLY HILLS, CALIFORNIA r INDEX Page Official Notice of Sale I-V Drawing of the Fontana Area 1 Fontana- -General Information 2-6 Views of Fontana 7-9 Fontana, Part of the Metropolitan San Bernardino - Riverside -Ontario Area --General Information 10-16 Views of the Metropolitan Area 17-18 The Sanitation Project 19-21 Engineers' Drawings ZZ-23 The Bond Issue 24 Legal Opinion Z4 Tax Exemption 24 Operating Budget 24-25 Sewer Service Rates and Charges 25-27 Collection and Enforcement of Sewer Charges 27 Debt Service Coverage 27-28 Bond Reserve Fund 28 Flow of Funds �9 Financial Statement 30-31 Funds and Covenants 32-35 Credits 36 General Statement 37 NOTICE INVITING BIDS ON $2, 655, 000 SEWER REVENUE BONDS OF THE CITY OF FONTANA, CALIFORNIA NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $2, 655, 000 par value Sewer Revenue Bonds of the CITY OF FONTANA, CALIFORNIA will be received by the City Council of said city at the place and up to the time below specified: TIME: Tuesday, October 9, 1956, at 7:30 o'clock P.M. PLACE: City Hall, Fontana, California MAILED BIDS: Mailed bids should be addressed to the city, c/o George W. Vierra, City Clerk, ,City Hall, Fontana, California. OPENING OF BIDS: The bids will be opened at the meeting of said City Council to be held October 9, 1956, at 7:30 o'clock P.M., at its Council Chambers in the City Hall in the City of Fontana, California. ISSUE: $2, 655, 000 consisting of two thousand six hundred fifty-five bonds, numbered 1 to 2,655, both inclusive, of the denomination of $1, 000 each, all dated November 1; 1956. MATURITIES: The bonds will mature in consecutive numerical order on November 1 in the amounts for each of the several years as follows: Year of Principal Year of Principal Maturity Amount Maturity Amount 1961 $ 20,000 1973 $120,000 1962 30,000 1974 130,000 1963 40,000 1975 140,000 1964 50,000 1976 150,000 1965 60,000 1977 160,000 1966 70,000 1978 170,000 1967 80,000 1979 180,000 1968 90,000 1980 180,000 1969 100,000 1981 185,000 1970 105,000 1982 185,000 1971 110,000 1983 185,000 1972 115,000 INTEREST: The bonds shall bear interest at a rate or rates to be fixed upon the sale thereof but not to exceed 6% per annum, pay- able annually the first year and semiannually thereafter. PAYMENT: Said bonds and the interest thereon are payable in lawful money of the United States of America at the office of the City Treasurer of the City of Fontana, in said city, or, at the option of the holder, at any fiscal agency of the City of Fontana in Los Angeles, California, or San Francisco, California, or Chicago, Illinois, or New York, New York. REGISTRATION: The bonds will be coupon bonds registerable either as to principal only or as to both principal and interest. CALLABLE: The bonds maturing on or prior to November 1, 1978, shall not be subject to call or redemption prior to maturity. The bonds maturing on or after November 1, 1979, or any of,them, may be called before maturity and redeemed, at the option of the City Council, on November 1, 1966, or on any interest payment 'date thereafter prior to maturity, at a redemption price for each redeemable bond equal to the principal amount thereof and accrued interest to the redemption date, plus the following premiums if redeemed at the following times: REDEMPTION DATES On or after And prior to November 1 November 1 Premium 1966 1968 6%a 1968 1970 5%u 1970 1972 4% 1972 1974 3% 1974 1976 2% 1976 1978 1% 1978 Maturity 0 All or any of the bonds subject to call may be called for redemption at any one time. If less than all of the bonds are redeemed at any one time, such bonds shall be redeemed only in inverse order of maturity and number, beginning with the highest numbered bond. PURPOSE OF ISSUE: Said bonds are authorized for the acquisition, construction and financing of a sanitary sewer system for the City of Fontana. SECURITY: Said bonds are issued pursuant to the Revenue Bond Law of 1941 (California Government Code Secs. 54300 et seq. ). Said bonds are equally secured by a pledge, charge and lien upon the revenues of the entire sanitary sewer system of the City of Fontana to be acquired, constructed and financed with funds derived from the sale of these revenue bonds, together with all additions and improve- ments to said system hereafter made. The principal of and interest on the bonds and any premiums upon the redemption of any thereof are not a debt of the City of Fontana nor a legal or equitable pledge, charge, -lien or encumbrance upon any of its property or upon any of its income, receipts or revenues, except the revenues of said sanitary sewer system which are under the terms of Resolution No.623, and said Revenue Bond Law of 1941, pledged to the payment of said bonds and interest. The general fund of the City of Fontana is not liable for the payment of the bonds or their interest, nor is the II credit or the taxing power of the city pledged. The holder of the bonds or coupons shall not compel the exercise of the taxing power of the City of Fontana or the forfeiture of any of its property. TERMS OF SALE Interest Rate: The maximum rate bid may not exceed 6% per annum, payable annually the first year and semiannually thereafter. Each rate bid must be a multiple of 1/4 of 1%. No band shall bear more than one interest rate, and all bonds of the same maturity shall bear the same rate. Not more than two interest rates may be bid. The repetition of any rate will not he considered the bidding of an additional rate. The rate on any maturity or group of maturities, shall not be more than 1/2% higher than the interest rate on any other maturity or group of maturities. Discount: The bonds may be sold at a price below their par value, provided, .however, that the maximum net interest cost on any bond sold below par value shall not exceed 6% a yearpayable semi- annually to the maturity date of said bonds as determined by standard tables of bond values. Award: The bonds shall be sold for cash only. All bids must be for not less than all of the bonds hereby offered for sale. Each bid shall state that the bidder offers accrued interest to the date of delivery, the premium, if any, the interest rate or rates, not to exceed those specified herein, at which the bidder offers to buy said bonds, the price offered per bond for each maturity, the price offered for all bonds of a maturity and the total price offered far the issue. Highest Bidder: The bonds will be awarded to the highest responsible kidder or bidders considering the total price offered, the interest rate or rates specified, and the premium offered, if any. The highest bid will be computed by adding to the net interest cost to the city the amount of the discount bid (if any) and the award will be made on the basis of the lowest total cost to the city. The net interest cost shall be computed on a 360-day year basis by deducting the total amount of the premium bid (if any) from the amount of interest which the city would be required to pay from the date of said bonds to the respective maturity date thereof at the coupon rate or rates specified in the bid. In the event that two or more bidders have bid the same total cost to the city the bid offering the highest price for the bonds will be considered the best bid, unless each bid has the same price, in which case the award .. shall be made by lot.. The purchaser must pay accrued interest from the date of the bonds to the date of delivery. The cost of printing the bonds will be borne by the city. Right of Rejection: The city reserves the right, in its discretion, to reject any and all bids and to the extent not prohibited by law to waive any irregularity or informality in any bid. Prompt Award: The city will take action awarding the bonds or rejecting all bids not later than twenty-six hours after the time herein prescribed for the receipt of proposals; provided, that the award may be made after the expiration of the specified time if the bidder shall III not have given to the City Council notice in writing of the withdrawal of such proposal. Place of Delivery: Delivery of said bonds will be made to the successful bidder at the office of Jeffries Banknote Company, 117 Winston Street, Los Angeles, California. Prompt Delivery; Cancellation for Late Delivery: It is expected that said bonds will be delivered to the successful bidder within thirty days from the date of sale thereof. The successful bidder shall have the right, at his option, to cancel the contract of purchase if the city shall fail to execute the bonds and tender them for delivery within sixty days from the date of the sale thereof, and in such event the successful bidder shall be entitled to the return of the deposit accompany- ing his bid. Form of Bid: Each bid together with the bid check must be in a sealed envelope, addressed to the city with the envelope and bid clearly marked "Proposal for City of Fontana Sewer Revenue Bonds". Bid Check: A certified or cashier's check on a responsible bank or trust company in the amount of $50, 000 of the prin- cipal amount of the bonds, payable to the order of the city must accompany each proposal as a guaranty that the bidder, if successful, will accept and pay for said bonds in accordance with the terms of his bid. The proceeds of the check accompanying any accepted proposal shall be applied on the purchase price or, if such proposal is accepted but not performed, unless such failure of performance shall be caused by any act or omission of the city, shall then be retained by the city. The check accompanying each unaccepted proposal will be returned promptly. Change in Tax Exempt Status: At any time before the bonds are tendered for delivery the successful bidder may disaffirm and withdraw the proposal if the interest received by private holders from bonds of the same type and character shall be declared to be taxable income under present federal income tax laws, either by a ruling of the Bureau of Internal Revenue or by a decision of any federal court, or shall be declared taxable by the terms of any federal income tax law enacted sub- sequent.to the date of this notice. Legal Opinion: The unqualified opinion of O'Melveny & Myers, attorneys, approving the validity of said bonds will be furnished the successful bidder at or prior to the date of delivery of the bonds, at the expense of the city. No Litigation Certificate: At the time of payment for and delivery of said bonds the city will furnish the successful bidder a certificate that there is no litigation pending affecting the validity of the bonds. INFORMATION AVAILABLE: For further information respecting the terms and conditions of the bonds,bidders are referred to the copy of Resolution No. 623 which accompanies the Official Statement. Said resolution contains the various covenants and provisions made for the security and protection of the bondholders, including covenants relating to rates and charges to be made for service, the use of the revenues of the sanitary sewer system, the establishment of funds, the limitations upon transfer from the Sewer Fund, the limitations upon additional debt payable from such revenues, and said bonds shall be issued under and pursuant to said resolution. Copies of this notice invit- ing bids for the purchase of said bonds, together with copies of said Official Statement to be issued in connection with the sale of said bonds and copies of said Resolution No.623 may be obtained from: George W.. Vierra City Clerk City Hall. Fontana, California -or- J. B. Hanauer & Co., Financial Consultant for the City 140 South Beverly Drive Beverly Hills, California GIVEN by order of the City Council of the City of Fontana, California, adopted September 4, 1956. GEORGE W. VIERRA City Clerk of the City of Fontana, California BISHOP BAKERSFIELD ANTELOPE VALLEY MT. BALD'' fMTN.RESORTS .14 tnu 0< J d cn W WEST COVINA OMONA 0 a 0 J ORANGE ANAHE M L.A. HARBOR ORONA BARSTOW LAS VEGAS NEEDLES ALBUOUEROUE VICTORVILLE APPLE VALLEY DESERT RESORTS °HESPERIA IALTO0 BIG BEAR M T N.J�LAKE\ ARROWHEAD - RESORTS • SAN BERNARDINO COLTON BLOOMINGTON IVERSIDE REDLANDS PER R15 ELSINORE SAN DIEGO BEAUMGNT H MET BANNING 29 PALMS DESERT RESO'TS 2 x a PALM SPRINGS IMPERIAL VALLEY THE ABOVE LOCATION map of the City of Fontana within the general area of western San Bernardino and Riverside Counties and eastern Los Angeles County shows the City's proximity to various California communities and points of interest. Many of these are discussed in the following two chapters. 44.7 -2- GENERAL INFORMATION ABOUT FONTANA Established more than 40 years ago, and widely known as a successful agricultural community, Fontana, California, now is equally well known as an industrial center. Fontana, which became an incorporated city on June 25, 1952, is located in the southwestern portion of San Bernardino County, 9 miles west of San Bernardino and 48 miles east of Los. Angeles. Fifteen thousand people live within the five square miles com- prising the corporate limits of Fontana. The City's trading area has a population of 30,000 and more than 500,000 people are within easy commuting distance. In fact, the area is accessible within an hour by automobile, via a 4-lane freeway, to most of the 2,000,000 residents of Greater Los Angeles. To the west of Fontana, but outside the City limits, are the Southern California Edison Company's new $41, 200, 000 steam electric generating station, Kopper Company's $2, 500, 000 enamel pipe covering plant, the sizeable Kaiser Steel Corporation plant, the Taylor Forge & Pipe Works, West Coast Loading Corporation, the Graver Tank & Manu- facturing Company, and Gilfillan Brothers, Inc., an electronics firm. None of these industries contribute to Fontana's tax base. ; A directory of Fontana industries includes: Capistrano Winery & Vineyard Co.; Fontana Foundry; Fontana Gravel Co.; Fontana Boat Shop; Fontana Salvage Co.; California Lightweight Block Corp.; Calitoy Manufacturing Co.; Cherpin Windery; Cresswell Paving Co.; Fontana Windery; Host, Inc.; Linde Air Products; Lyn Joy of California; Mae Headrick of California; Mineral. Wool Insulation Co.; Nu-Lite Insulated Homes, Inc.; Olson Bros. , Inc.; Fontana Steel Company; Pacific Forge Co.; Pioneer Chain Link Fence Co.; Ross & Brown Paper Box Co.; Service Rock Co..; Splendor Bleach Mfg. Co.; Triangle Certified Concrete; Trojan Tackle Corp.; Vernon Paving Corp.; Williams Ceramics Mfg.; and the Williams Paper Box Company. Agricultural products --especially poultry --play an important role in the Fontana economy. Swift & Company operates a large duck ranch and poultry processing plant employing 150. The Carnation Milk Company has a distribution center in Fontana, employing 110; and grapes, oranges and other fruit contribute to a varied economy. Annual egg and poultry sales exceed $11, 500, 000. The Kaiser Corporation plant is the west's only completely integrated steel mill. In operation since 1943, it is now being further expanded through a $113, 000, 000 improvement program. Form of Government Fontana has the Mayor, Council and City Administrator form of government. The latter, Mr. Doyle Miller, was employed early this :�; year. -3- Police Protection The Fontana Police Department is headed by a Chief of Police, assisted by 19 patrolmen. The Department has four squad cars and a 3-wheel motorcycle, all equipped with 3-way radio. The San Bernardino County Sheriff's office maintains a sub -station in Fontana. Fire Protection The Fontana Fire District has its central station and one sub- station in the City. It is headed by a Fire Chief, with 28 full-time employees and five volunteers, and serves the 30-square mile Greater. Fontana area. Equipment includes two 750-gallon pumpers, one 500-gallon pumper, four tankers of smaller capacities, two sedans and a utility pickup truck. All but the 500-gallon pumper are equipped with 2-way radio. There is no special fire alarm system. The department has two resuscitators. The District has 552 fire hydrants. A tax rate of $. 53 supports the department, based on a District valuation for 1955-56 of $31,285,970. Churches and Clubs There are 26 churches in the City of Fontana, representing all denominations, and a directory of clubs and organizations includes most civic, patriotic and fraternal groups. Hospitals There are two hospitals, one of 86 beds and the other 43 beds, both operated by the Kaiser Hospital Association. Newspapers There are two newspapers, the daily Herald -News and the weekly City Bulletin. County Offices County offices located in Fontana, in addition to the previously identified Sheriff's sub -station, are: a well -stocked library, tax assessor's office, building inspector, health inspector, and justice of peace. Transportation The San Bernardino Freeway, just south of the city limits, is the principal motor car and truck route between Fontana and Los Angeles, 48 miles to the west, and San Bernardino, 9 miles to the east. This new 4-lane limited access highway also carries the traffic of two federal highways, U. S. 70 and U. S. 99. Also, a second federal highway, U. S. 66, parallels the Freeway, two miles to the north. Local public transporta- tion is provided by the Fontana Transit Lines and taxis. The Metropolitan Bus Line maintains hourly scheduled service to Los Angeles and San Bernardino. The City is on both the Santa Fe and Southern Pacific main lines, and residents are within 15 minutes driving distance of the Ontario International Airport. -4- e • L Educational Facilities The Fontana Unified School.District has become a multi -million dollar business, a $3, 678, 831 business, to be specific. The District, which withdrew from the larger Chaffey District to the west this year, includes one high school, one junior high school, and seven elementary schools. The total charged to instruction only in the 1956-57 school budget, is $2, 048, 810. Otherset costs exceeding $100,000 are: operation of school plant, $327,742; 'administration, $115,481; general reserve, $350,348; capital outlay, $226, 169; transportation, $143, 221; maintenance of school plant, $137, 899; and fixed charges, $141, 034. Average daily enrollment in the high school and grade schools has grown as follows: Elementary School - High School (Opened in 1952) 1950-51 3,062 1952-53 757 1951-52 3,474 1953-54 1,087 1952-53 4,134 1954-55 1,491 1953-54 4,526 1955-56 1,612 1954-55 4,986 1956-57(Est.) 1,820 1955-56 5,561 There are two parochial schools in Fontana, Newman High School, with an enrollment of 150, and St. Joseph's Academy, with a 1955-56 enrollment of-560 and an anticipated 1956-57 enrollment of 600. Newman opened in 1950, with a first year enrollment of 90, and attendance at St. Joseph's Academy has practically doubled since it opened in 1948. The closest 4-year college is the Riverside Campus of the University of California, but Fontana residents contribute tax support, and a sizeable percentage of the student body, to the Chaffey Junior Col- lege in nearby Ontario. Chaffey had a full-time'day enrollment of 1,049 during the last term, expects 1,617 by 1960 and 3,146 for the 1968-69 term. Statistics Indicative of Growth Although there has been a recent decline in building permits in Fontana, this situation is considered only temporary, and the building trades anticipate a decided upswing in the months and years to come. During the first six months of 1956, 207 permits totalled $1, 985, 044, including 96 new residences and Z2 commercial properties. However, during' 1955 there were 791 permits issued with a dollar value of $5, 083, 613. This represented 341 new houses, $3, 760, 900; 41 new commercial permits,- $1, 004, 147; and 409 miscellaneous repair and im- provement permits, $318, 566. Telephone statistics, always a good business growth, barometer, reveal that the Pacific Telephone & Telegraph Company early this year made its 10, 000th Fontana installation. Before the end of the year it will be necessary to open a new prefix for the present VAlley-2 dial exchange. ■ rr -5- Figures on telephone installations since 1940 are as follows: 1940 1945 1950 1951 1952 1953 1954 1955 April 30, 1956 712 1,724 4, 686 5, 560 6,413 6, 606 7, 978 9, 927 10,477 No local civic or business organization compiles statistics on retail sales, by the various categories, for Fontana, but City records on collections from the 1% sales tax confirm that taxable sales were of a size during the fiscal year ending June 30, 1956, to pay $111, 636. 87 into the City Treasury. Receipts for the 1954-55 fiscal year were $96, 601. 76, were $98, 275. 35 during 1953-54 and $56, 187. 26 for the nine remaining months of 1952-53 following Fontana's incorporation. Deposits in the two Fontana banks, a Bank of America branch and a branch of the Citizens National Trust & Savings Bank of'Riverside, the latter opened in 1952, are expected to exceed $20, 000, 000 by December 31, 1956. Total bank deposits since 1945 are as follows: 1945 $ 7,012,000 1950 10,803,000 1951 12,929,965 1952 14,802,721 1953 17, 227, 235 1954 17, 726, 810 1955 19,469,130 June 30, 1956 19,830,026 The first class Fontana Post Office on July 15, 1956 was serving 9, 598 boxes by city delivery, 835 boxes by rural delivery, 581 by post office boxes, and 115 boxes by Star route'. Receipts have increased ten -fold during the past 15 years, as follows: 1940 $ 18,506.48 1945 65,955.45 1950 110, 046. 58 1951 128,243.51 1952 151, 234. 42 1953 174, 073. 93 1954 187,514.14 1955 199,303.40 June 30, 1956 94,443.94 -6- Public Utilities Gas service is provided by the Southern California Gas Company. They report the following growth of service connections since the City's October 1, 1952 incorporation: 1952 3,240 1953 3,607 1954 3,860 1955 4,103 May 1956 4,261 Similar progress is reported by the San Gabriel Valley Water Company, which serves a 30-square mile area including Fontana, and by the electrical distributor, the California Electric Power Company. Lytle Creek, to the north of Fontana, provides most of the City's water. Numerous wells supplement this supply. Storage facilities include five reservoirs with a total storage capacity of 10,550,000 gallons. It is expected that additional water will be available within a few years from the Metropolitan Water District, which already supplies Los Angeles from its Colorado River sources. Fontana's most likely direction of expansion is to the north, and an important step to opening this area is now in progress. The Chino Basin Water District has undertaken a $400, 000 project to extend their lines, partly to provide additional water to Fontana, but also to be prepared for anticipated growth. Two Los Angeles developers recently assembled tracts totalling over 500 acres in this vicinity, which is north of Highway U.S.66. Both plan to start sizeable housing developments in the near future. Fontana became a townsite on June 7, 1913, largely through the efforts of a land developer named A. B. Miller, who arrived in 1905 and who later headed and expanded the locally famous Fontana Farms Com- pany. The Kaiser mill was dedicated on December 30, 1942, touching `T. off the area's most rapid growth period. The inpour was so great that many plant employees were, and are, forced to reside elsewhere. Com- pany officials estimate that only 46. 5% of their employees currently __ live in Fontana, and that the remainder are distributed among some 60 communities. San Bernardino has the next highest percentage, 11. 8%; Ontario is third, 11. 3%; Riverside is fourth, 5%; and Upland is fifth, also about 5% Average annual maximum and mean temperatures in Fontana are 80:2 and 63. 1 degrees, and the average annual rainfall is 16. 75 inches. The City is 1,320 feet above sea level. -7- REDLANDS FEDERAL SAVINGS VIEWS OF FONTANA-- To the left are three recent business additions, a Stater Bros. super- market grocery, upper left; the Sprouse -Reitz Co., 50(10}` store, center; and lower left, Jack Hodson's Oldsmobile agency. To the right, upper, is a new Fontana branch of the Redlands Federal Savings Company. f1 " Ii eft .''L':!; i611�t J� tl��I- • ' ' '� i + I ►+ .{1rr.�llStl��jl: �{.i �9$�ii`C�i+. 4 ii i tip: HIS AERIAL VIEW of Fontana shows thh San Gabriel Mountains in the background to the east and the nco n the center. In the foreground, center, is the Kaiser Steel Plant, and in the lower left corner is the EdisorAt enerator Zflectric plant. It has been estimated that 250, 000 will eventually reside in this area. aA �;r ..;+.;IrTcn t- ,....I„ �..fi(i.,��...Y,:r.iut;6rlatw A ee.�i3iS:iillcrc�in.l.:f�sA�u.wn�.t:L(rl,.�s"+�iGcii,(iF, 1t .•.,•'...•"•.•"'"..•." .�� _�,...e � :Ja:� ..al Na���,i r `� i;i...:. ..y HIGHLAND 0111 AVE I` TO LYTLE CREEK 7O SA.. a#QNARN..... _ m Win ENr f _ a Et; .—' i ff. ° r r W Q Q 1PER AVE W 1ETTO AV RIND AVE W OCUST AV Q AVE 2 VICTORIA AVE _< f ; �" . •„ Q re�f1 PACIFIC ��F o GILFILLAN a WALNUT ST - 4 0 W �I... CT Aic t J W BASE BROS..INC. FA R.POR:T. LINE RD (/) W D N 2 1 Cr W l� Z Q �y LL W J a (7) f 2 Q O J Q Jt- 100 (too oo) AVE L ICORNIA AV E W CI TF I CYPRI 2C ' W W J 7 MONTCOMERY Q 4Q W W G CC i 41. Q tl < SAN J INT a �.- 1- RAY .wo ,t LA��,/`GHAM AVE rr W 4( et( } a AAno A ELAINE - . F E.� V(�V 4 MILLER • E ".. _.. I� W J 4IFAIR,FAIf = F �..�4<`uar �C�ym Q F = E. r n MALAC.A n 'UREL E DR �. HI`,pVEV = Y "'"`+-^ a b /'M FOOTHILL W REED al '3't k,,,•� BLVD U•S• 66 CO W BARITE EEO .LOT AV 1 C�IESTNUT Q��� 0 Y a W DAINE OAI„yEau W a 0 ADO tN m Q Z d' �. Q O MUSCAT GGUPLAN �;' IVY a: W I� I I IVY v. 7 y� .4 "-" �C Y�TT- ((�l� c W UCCA Z H > up AND—AV,_'�_ a .. cwl[r k„71 w..� D : OW '� W V g J = V• j a O V :.:?EVILLE— 5 .i �N � z d�►a ARROW 4 ROUTE .7 s J W E � ° � Aa"r.W99" i31M1 7 I-1% W O 4 3• t lit WHITT 2AM CY AV E ,,. VINEYARDDA - F n®®=- _ u Ia � I � / AD Q A -I 01.1CiFiY p�I `T; a • EN I> av A• T • S' FE © ARROW• ' R E R E S V Ex W i II IE f T -� 1�z.L0v L- LZ; a F ZW r ASTASIA Ie -.N 111 t �.t M ER R-LL ORoo o F m iFI 5 vn ; II m w A b .Fs' HIBIS U o "T" W ATHQL a ST N -TM . W BONWELN 14' .111 i f'� 1I a`�r ATHQL = ®Q J w F n k i mile..• ews PINE AVE sue,":` RANDAL J tltl o n w o ■ TAYlON 1 ..�, - -..- `t LL- L W z O na XF w� A E L S QE �� . 'U FILDER " 4 Q_ i p . W r HAWTHORNE I / 1_ L L , k• ` NTFA C£ E J O .%• .-/ "r HOL LV OR 6 7 i -GR EVILLE _! ��,, $ F >< -( AMANITA, SAN B•E RN AR DIN~ r m .,. _5 M/NEPNL�WO�o•L PROOUCTJ RO SEMAR EL LINO G � _ �I€}� V PS 4 LLO Q a ••". W 4 oDR n CRYROSE Any IRIS OR VD NTER sr' IRIS DR ^•"'"r M ARTS OLD AVE% FONTAN 1 8 WAS ING ON OR r• VALLEY BLVD (®� ® L " DUMP LIM ITEDI FRE '•"��*•�+ ATE HIGHWAY 26) TAYLOR AV t v t• JOUTHEF I PAC/P/C R. 1 BOu, CI Ig OL. AVE ! i ICI` B O L E AVE MIDAS D A S AVE I� ii THIS MAP OUTLINES generally Fontana's shopping area. The incorporated 5-square mile City of Fontana is within the heavy black bordered square to the right. The new 4-lane limited access highway, the San Bernardino Freeway, is to the south of the City. -10- FONTANA - Part Of The • SAN BERNARDINO-RIVERSIDE-ONTARIO METROPOLITAN AREA Officially designated as a metropolitan entity by the United States Bureau of Census in 1953, the Southern California triangle formed by the cities of San Bernardino, Riverside and Ontario had by this year climbed in population to No.29 in the nation- -just ahead of Metropolitan Indianapolis and- one spot below Louisville. The area's population of 626, 100 on May 1, 1956 represents an advance from No. 32 on October 1, 1955, according to figures recently released by the Standard Rate and Data Service, Evanston, Illinois, specialists in marketing statistics. Various local utilities, colleges, Chambers of Commerce and industrial specialists have charted past growth records into the future, showing an eventual total of well over 1, 000, 000. About the only point on which they disagree is when this number will be attained. Some say as early as 1960, others estimate a date around 1975. The Standard Rate and Data Service has included Northeast New Jersey in the Metropolitan New York City area, for a total of 14, 276, 000. Chicago is second with 6, 062, 600, Los Angeles -Long Beach is third with 5, 573, 800, Philadelphia is fourth with 4, 155, 000, and Detroit is fifth with 3,498, 500, all estimated as of May 1, 1956. On this same date cities between Nos. 25 and 35 were: Dallas, 731,700; Miami, 729,600; Denver, 713, 800; Louisville, 668,200; San Bernardino -Riverside -Ontario, 626, 100; Indianapolis, 592, 100; Youngstown, 589, 100; Birmingham, 584, 500; Columbus, Ohio, 570, 800; Albany -Schenectady -Troy, 566, 600 and Memphis, 553, 900. Later charts in the same publication similarly classify the various metropolitan areas as to income and retail sales, with the San Bernardino -Riverside -Ontario area rating high in all categories for the calendar year 1955, as follows: Consumer 'Spendable Income No. 31, Dayton, $1, 074, 365, 000; No. 32, Youngstown, $1,064,039,000; No.33, San Bernardino-Riverside-Ontario,$1,049,920,000; No. 34, Albany -Schenectady -Troy, $1, 006, 699, 000; and No. 35, Rochester, $995, 154, 000. Total Retail Sales No. 29, Columbus, Ohio, $813, 332, 000; No. 30, Louisville, $768, 442, 000; No. 31, San Bernardino -Riverside -Ontario, $743, 814, 000; No. 32, Albany -Schenectady -Troy, $716, 521, 000; and No.33, Memphis, $692,923,000. Filling Station Sale s No. 15, Baltimore, $88, 642, 000; No.16, Buffalo, $81, 551, 000; No. 17, San Bernardino -Riverside -Ontario, $79, 271, 000; No. 18, Kansas City, $75, 020, 000; and No. 19, Dallas, $70, 314, 000. 1: • -11- Other Categories Food store sales --No. 28, $181, 618, 000; General merchandise store sales --No. 47, Drug store sales--No.35, $19, 936, 000; Automotive dealer and store sales --No. 38 Home furnishing store sales--No.29, $41, Apparel store sales--No.49, $31, 246, 000. $63,704,000; , $141,220,000; 865,000; Mr. Arthur B. Groos, Director of Industries for the San Bernardino County Board of Trade, believes his county will contribute four -fifths of Metropolitan San Bernardino -Riverside -Ontario's 1975 population of 1, 000, 000, with Fontana becoming one of the largest cities in the 2-county triangle. Although the largely mountainous and desert, and sparsely populated, eastern expanses of San Bernardino and Riverside Counties are currently lumped into thenew metropolitan area, the envisioned San Bernardino -Riverside -Ontario of 1975 will be able to hold strictly to the three corporate points: Therefore, the remainder of this report will ignore the huge March Air Force Base, southeast of Riverside; Palm Springs, with its 60% growth (from 7, 660 to 12, 225) since 1950, 53 miles east of Riverside; and other points of interest and population outside of the triangle. "By 1975, the Fontana area alone should have a population of 250, 000," the Board of Trade official predicted recently. The Board of Trade defines the Greater Fontana area as embracing the communities of Etiwanda, Bloomington and South Fontana. Ontario, 12 miles southwest of Fontana, according to Board of Trade projections, will be the only San Bernardino County city to exceed Fontana's rapid growth, moving to 175, 000 in 1965, and to 300, 000 in 1975. Upland, Chino and Cucamonga are included in this Greater Ontario. Population of this area on January 1, 1956 was 80,000. San Bernardino, the County Seat, nine miles east of Fontana, is expected by the Board of Trade to level off well before communities to the west. The composite projections start with an actual 129, 800 on January 1, 1956, move more slowly to 175, 000 by 1965, and then gain momentum to reach 250,000 in 1975. This Greater San Bernardino area includes Rialto and Colton, and the communities of Highland and Muscoy. The southeast point of the metropolitan triangle, Riverside, has shown a 52% gain in population since 1950. A 1956 special U. S. Bureau of Census, recently released by the_Riverside Press & Enterprise, revealed a city zone total of 95, 266 and a retail trading zone population of 177, 670. The Riverside County Board of Trade has predicted a 1960 County population of 294, 500, but has not released a 1975 projection. San Bernardino is the largest county geographically in the United States. A County'Board of Trade brochure, just released, adds these facts in its introduction: -12- - "San Bernardino County is so big that its county seat is closer to the cities of Los Angeles and San Diego than to the eastern border of its own county. • • "Seventy-five minutes west by truck (sixty by motor car) lies the fabulous metropolitan area of Los Angeles. Two hours to the south is the booming San Diego Metropolitan Area. But the City of Needles, on the Arizona border, is some four hours away "So tremendous is this one county that it is greater in size than the four eastern states of Massachusetts, New Jersey, Delaware and Rhode Island. _ Much of the land---92%---is mountains or desert, and 83% of the people live in 8% of the county, which is a fertile valley at the southwestern border. "San Bernardino celebrated its 100th birthday in 1953. Since the turn of the century, when 27, 929 persons lived within its borders, the county has welcomed thousands and thousands of tourists who decided to stay; men and women who bought homes and farms in the great agri- cultural belt, and enterprising men of business who foresaw a bright future for this well -located county The Norton Air Force Base, at the east city limits of San Bernardino, with 10, 461 civilian employees and 3, 094 military person- nel, as of July 1, 1956, is the biggest employer in the area. Norton Air Force Base has operated continuously since 1942. The Kaiser Steel Corporation's Fontana plant is the largest non- military employer. However, there are several other equally solid employers in Metropolitan San Bernardino -Riverside -Ontario, and others have either purchased plant sites or have sent new plant specialists into the area. The Lockheed Aircraft Service, Inc. , is one of the more important newcomers. Their overhaul and modification base at the Ontario Inter- national Airport now. occupies 101 acres and employs 3, 000, a large number of whom were transferred within the past two years from the corporation's previous overhaul base at Burbank. The LAS relocation is only one phase of an Ontario project to expand its International Airport to metropolitan stature. Already being served by the Western and Bonanza Airlines, other carriers are expected to soon take advantage of the field's excellent runways, improved facilities and growing passenger market. Four thousand three hundred are employed in the Santa Fe Rail- waysdivisional shops and yards at San Bernardino. Stabilizers, elevators and complete engine assemblies are manu- factured for Boeing's KC-135 and 707 Stratoliner airplanes at the Rohr Aircraft' Corporation's Riverside, plant. The Rohr -Riverside plant employs 1, 650 and has a monthly payroll of $650, 000. Colton, eight miles southeast of Fontana, will soon have the first plant west of Chicago casting railway car wheels. Ground was broken in June for a $4, 000, 000 plant of the Griffin Wheel Company of Chicago. -13- The foundry operation will employ 200, and is expected to go into oper- ation next February. Colton is now best known for its California Portland Cement plant and the big refrigerator car repair shop of the Pacific Fruit Express. Garrett & Company, who manufacture Virginia Dare Wine, own and maintain the world's largest vineyards aouthwest of Fontana at Guasti. The Guasti winery and 5, 000-acre vineyard were purchased in 1945 by Garrett & Company from the Italian Vineyard Company, and added to their 2, 000-acre vineyard and winery holdings in nearby Cucamonga. They employ approximately 350 vineyard and 125 winery workers. A unique real estate development comprising 3, 500 acres is being carved out of the vineyards east of the Garrett property. "For the first time," a brochure issued by the Vina Vista Development Company of Beverly Hills claims, "a complete new city has been established with every phase of its exciting development scientifically planned, rigidly controlled, and carefully channeled." It is expected that Vina Vista will become an incorporated City within the next few years. The Fruehauf Trailer Company was the first purchaser in the new area, paying $350, 000 early this year for a 100-ac:re block adjoining the San Bernardino Freeway. Work is expected to start in October on a plant containing 250, 000 square feet of production and office space and, costing $2, 500, 000. One thousand persons will be employed when the trailer plant, to be the largest on the West Coast, gets into production early next year. The Southern California Edison Company two years ago completed and opened a $41, 200, 000 steam -electric generating station at Etiwanda, just west of Fontana. The huge plant, with a rated capacity of 265, 000 kilowatts, was the first inland steam -electric plant installed by the Edison Company, and required 32 months to build. High school and junigr college needs for western San Bernardino County (Ontario -Fontana -Upland -Cucamonga and Etiwanda) up through 1975 are discussed in a special survey recently completed by the Univer- sity of California at Los Angeles Extension Field Service for the Chaffey Junior College District. This survey concluded that 19'75 enrollment for the Junior College will be approximately 6,000. There were 1,049 full- time day students at the school, located in Ontario, last October. The Chaffey High School District, which excludes Fontana's Unified School District, last year had an enrollment of 3, 223, but it is anticipated will have 19, 000 students in 1975. There are presently two high schools, at Ontario and Upland, and the group feels at least a third, possibly at Etiwanda, will be required to handle the increased student load. Following is a series of thumb -nail sketches on the cities and communities composing Metropolitan San Bernardino —Riverside -Ontario: Riverside Home of a new $6, 000, 000, 1, 500-student Riverside Campus plant of the University of California; the 1, 650-employee Rohr Aircraft Corporation; the charming Old Mission Inn; March Air Force Base and -14- 0.1 95,266 citizens, this city gained its first national notoriety early this year when selected by Look Magazine as one of its eleven "All -America Cities." Riverside is 10 miles southeast of Fontana. The award was made for a successful campaign conducted by the citizenry during the preceding few years to guard against the threat of its fine homes, excellent schools and varied cultural advantages being blighted by industrial growth. Their program, identified as the "Riverside Plan," led to adopt- ing the Council -Manager form of government, paid off the small city debt, cleaned up the few areas of substandard housing, paved streets, improved city lighting and extended sewer lines. A feature story in the January 10, 1956 issue of Look Magazine concluded: "Before the initial drive ended Riverside had so many projects under way that it had authorized expenditure of nearly hall of the $14, 000, 000 scheduled to be spent in seven years. But no financial pinch. threatens. In fact, because of the modernized city government and balanced community growth, Riverside had reduced its tax rate from $1. 14 to $1. 09 per $100 valuation in the two years since the birth of the Riverside Plan." Other 1956 Look 'All -America Cities" are: Bellevue, Wash.; Bloomington, Ill.; Cambridge, Ohio; Grand Island, Nebr.; Joliet, Ill.; Phoenix, Ala.; Port Huron, Mich.; Reading, Pa.; St. Paul, Minn.; and Savannah, Ga. San Bernardino Administration of the largest county in the United States-- 20, 157 square miles --is centered in San Bernardino, the County Seat. The northeastern point and presently most heavily populated section of Metropolitan San Bernardino -Riverside -Ontario, three rail- roads and two freeways bisect San Bernardino. It is also the center of Southern California's multi -million dollar summer and winter mountain and desert resort area. Mount Baldy, now with year-round skiing, is 20 miles to the northwest; Lake Arrowhead is only 22 miles to the northeast and Big Bear Lake another 10 miles along the same route; many tourists arrive aboard Santa Fe, Southern Pacific or Union Pacific trains to start vacations at the aforementioned resorts, or to go southeast less than 50 miles to the resort towns of Palm Springs and Twentynine Palms. Most of the larger department stores in the county are located in San Bernardino, making this city the shopping center for an unusually large area. Most residents of industrial Colton, to the south, normally go to the 2-block long Harris Department Store, or other San Bernardino stores, when sizeable purchases are in order. The County Court House grouping represents a sizeable payroll -15- to the city, and a necessary port of call for residents of the County. This group will soon be enlarged with the proceeds of a $8, 300, 000 bond issue. San Bernardino is the division headquarters for the Southern California Gas Company, which will soon complete a modern, 2-story, half -block office building. Although well known for its citrus industry, San Bernardino County produces' a variety of other crops, and San Bernardino serves as the marketing center for a large percentage of these. The County's principal agricultural products are poultry, grapes, walnuts, alfalfa, potatoes, beef cattle and milk. On the basis of gross returns to the grower, the total income from agricultural industries of San Bernardino County amounted to $108, 352, 100 for 1955, and have averaged $92, 389, 926 for the past ten years. Ontario A special U. S. Bureau of Census tally on July 1, 1955 listed Ontario's population as 35, 000. Ontario is slated for a tremendous growth by those familiar with its strategic west county location, International Airport, and progressive city spirit. Any growth experienced in Vina Vista will actually fall within Greater Ontario, as well as growth within suburban Cucamonga, Chino and Upland. The Board of Trade estimates 1975 populations in this area as: unincorporated Etiwanda, 74, 000; Community of Cucamonga, 20, 000; and Upland, 50,000. Ontario has plenty of land available for industrial use. Accord- ing to a recent Association of Commerce and Industry brochure, there currently are over 10, 000 acres zoned and over 1, 500 in the process of being zoned general manufacturing. Another 2, 000 are zoned limited manufacturing. The International Airport is the hub of existing industry. Lockheed Air Service, Inc. , Northrop, Aviation, Southern California Air- craft, GE Aircraft Production Service and affiliated firms employ a total of 4,000. Another .1, 000 are employed at General Electric's largest iron plant, which manufactures dry, steam and travel irons for marketing throughout the United States. There has.been a 32% gain in industrial plants in the Ontario area since 1950, Colton Colton is one of the County's oldest cities, having been incorpo- rated in July, 1887. Like so many others in the area, it grew slowly until the 1940-50 decade, as follows: 1900, 1,285; 1910, 3,980; 1920, 4, 283; . 1930, 8, 014; 1940, 9, 686; 1950, 14,382; i952, 15,381; and 1955, 17,312. Served by the Santa Fe, Union Pacific, Southern Pacific and Pacific Electric Railways, and by U. S. Highways No. 70, 99 and 395 and it -16- iq California Nos. 18 and 91, it is an industrial community. The California Portland Cement plant employs 500, the Pacific Fruit Express shop overhauls refrigerator cars, and there are a number of other large employers, including: the Hub City Structural Steel Com- pany, Kieckhefer Container Company, Crane -Pacific Company, Miller Honey and Sunshine Biscuit Company, Cal-Dak Company and Alliance Ware, Inc. Colton's assessed valuation for fiscal year 1955-56 was $13, 152, 419, a growth of $4, 661., 040 during the past ten years. Postal receipts had increased from $65, 664 to $106, 887 during a similar 10-year period, electric service connections from 4, 005 to 5, 647 and school enrollment from 3, 340 to 5, 300. Rialto A special mid-1955 U. S. Bureau of Census count listed Rialto's population as 9, 500. Rialto is four miles east of Fontana. California Electric Power Company recently announced it would move its District offices and 500 employees from Riverside to Rialto., Their new administration building, which is scheduled for completion early next year will represent an expenditure of $2, 070, 000. "Our new Rialto -San Bernardino center, v' Mr. Carl C. Ernst, Calectric Vice President announced, "will enable us to effect economies and increased efficiency. It represents the most economical means with respect to geographical location and design to meet present and future growth demands." - The decision to erect a sub -district Court. House at Rialto, in- cluded in the $8, 300, 000 County program, confirms the growing importance of this city and area in San Bernardino County affairs. Bloomington The unincorporated community of Bloomington is 5 miles south- east of Fontana. The Bloomington School District, representing an area of 17 square miles, had a fiscal year 1955-56 assessed valuation of $7, 282, 000 and an estimated population of 12, 100. From a population estimated at 2,490 in 1940, the Bloomington District grew to 7,000 in 1950 and was estimated at 12,100 on July 1, 1956. Although its citrus orchards are being reduced, both for in- dustrial and housing needs,, oranges are still the area's principal dollar producer. There are over 5, 000 acres of citrus fruit, a year-round crop -- Navel oranges in the winter, Valencia oranges in the summer, and the famous summer grapefruit. -17- RIVERSIDE u LIN6TON UPPIETP TEMECULA SAN BEQNARD NO COUNTY a ry 44U0• A_ � I i' Aaa %latiata %ilony (* !--'-w i g PANNING 0� RIVERSIDE COUNTY up, QI Ser,rco S4M •i:60 COe/Nll /MOZR/AL O•/NT' $ .gry• 1 PIPIEY Eu RIVERSIDE COUNTY OFFERS her citizens a variety of scenery and activities, as the map at the top of this page confirms. The City of Riverside (upper left) unfurls the "All -America City" banner awarded by Look Magazine early this year, along with the American and California flags at City Hall daily. Upper right is Highway US60 as it enters Riverside from Rubidoux from the west. Although the County Courthouse was erected in 1903, it recently received further interior modernization (lower left) with the installation of air con- ditioning equipment. Riverside is widely known for its Mission Inn (lower right) which occupies a full block in the center of the City. • rM 1, j i ir-- MI. Fag -18- MORE AREA VIEWS --- On this page are five miscellaneous photos and drawings giving further confirmation of diversified industrial growth within the Metro- politan San Bernardino - Riverside -Ontario Area. Upper left is a night view of the $41, 200, 000 Edison steam -powered generating plant at Etiwanda. This mound of grapes (upper right) will become Virginia Dare port at the Garrett winery south of Fontana. 3,000 are employed at Lockheed's Ontario modification and overhaul base, left center. New Boeing Stratoliners get their motors from the Rohr Aircraft Corporation's Riverside plant, right center. Below is an artist's drawing of how the principal shopping area of planned city Vina Vista, south of Fontana, may look. -19- THE SANITATION PROJECT The purpose of this $2, 655, 000 sewer revenue bond issue is to provide the City of. Fontana with a modern sanitation system where no such facility previously existed. The following is a summary of the Engineering Report describ- ing the construction program: The system will consist of a network of 24- to 6-inch sewer lines and an ultimate two-phase sedimentation disposal plant, and provides for a maximum growth of Fontana, within its present boundaries, to 28, 500. If the San Bernardino County Board of Trade prediction of 250, 000 popu- lation for this area proves correct, then additional facilities will have to be installed. The sewage treatment plant, to be located on a 76. 5-acre tract three and one-half miles southwest of Fontana, initially will provide primary treatment, consisting of primary sedimentation with separate sludge digestion, and discharge of the treated effluent into absorption ponds. This more economical system was found to be both practical and possible after soil tests confirmed an unusually rapid absorption capacity through the high sand content. Furthermore, because of the stringent requirements of the California Water Pollution Control Board, it was not considered feasible to pipe the sewage to the main channel of the Santa Ana River and there administer a complete and costly decontami- nation process. A further simplification and cost -saving natural feature in this project is the north to south slope of the area. In addition to the normal flow of domestic sewage and trade wastes, sewers must also be designed to carry ground water infiltration during and after rainy periods. In a well -constructed sewer system, such infiltration should not exceed 1,000 gallons per inch of sewer diameter per mile per' day. Under Fontana conditions, with sandy soil, infiltration should not be a serious problem, although it is probable that during and immediately after heavy rains some surface water will enter the sewers through manholes and other openings. Therefore, the Engineers have assumed an infiltration rate of approximately 20, 000 gal- lons per mile per day for sewers of all sizes. Starting with an estimated population of 17, 500 in 1960, the Engineers have prepared the following "Estimated Sewage Flows" Table, to indicate the average daily sewage flow, the maximum instantaneous sewage flow with infiltration to be expected from the City of Fontana as a whole: -20- Estimated Sewage Flows, Fontana, California (Gallons per day) Maximum Instantaneous Average Max. Rate Maximum With Year Population Flow Factor Flow Infiltration Infiltration 1960 17,500 1,930,000 2.71 5,230,000 613,000 5,843,000 1965 23,000 2,530,000 2.59 6,550,000 805,000 7,355,000 1970 28,500 3,140,000 2.55 8,000,000 1,000,000 9,000,000 1985 45,000 4,950,000 2.31 11,420,000, 1,575,000 12,995,000 c, The sewage collection system was designed in accordance with favorable topographical conditions which dictated that the north to south system, with short east and west laterals, is the most economical. layout. =a �` Where alleys are available, principally in the business district, cA sewers have been planned in alleys to avoid cutting the pavement in the main streets. Where alleys are not available, comparative cost studies indicate that it will be cheaper to construct sewers in the streets, cutting and replacing the pavement rather than to attempt to construct them along obstructed back property lines. The fact that all streets and practically all alleys in the City are paved does add materially to the cost of the sewage collection system. Expensive railroad crossings have been reduced to a minimum in the final plans by combining two or more of the sewers' in the north - south streets into a single crossing wherever possible. For the purpose of the foregoing table, since the City of Fontana has no sewers at the present time, the Engineers estimate that the sewage flow will amount to 110 gallons per capita per day. These estimates are comparable with the nearby City of San Bernardino. According to existing information, the average per capita daily water consumption in San Bernardino is 200 gallons per capita per day, while the same figure in Fontana at the present time is 170 gallons per capita per day. The average sewer flow in San Bernardino is 120 gallons per capita per day and this would indicate a sewage flow in Fontana, by comparison, of approxi- mately 102 gallons a day. A margin of safety of eight gallons per day was added, totalling 110 gallons. The estimated cost for all sewer lines is $1, 712, 275, and the estimated plant cost is $541, 090, including the plant site and outfall line to connect the systemto the plant. Special State of California funds will contribute approximately $122, 000 to the project. According to the Consulting Engineers, the following materials and equipment will be required to construct the Fontana Sanitation System: -21- M 1 1 1 1 1 1 1 1 1 1 ■ 1) Interceptor and tributory sewers, Section No. 1, consisting of 59, 707 feet of service connections and 130, 980 lineal feet of mains, with pipe sizes varying between 6 and 21 inches; 2) Interceptor, lift station and tributary sewers, Section No. 2, consisting of 34, 030 feet of service connections and 85, 242 lineal feet of mains, with pipe sizes between 6 and 21 inches; 3) Interceptor and tributary sewers, Section No, 3, consisting of 22, 840 feet of service connections and 65, 432 lineal feet of mains, with pipe sizes varying between 6 and 15 inches; 4) Outfall lines, consisting of 16, 975 feet of 21- to 24-inch pipe; 5) Treatment plant, including digester, sludge thickener, sludge beds, absorption ponds, primary clarifier, yard piping, bar screen, recirculation pump station and electrical connections; 6) Heat exchanger building; 7) Office and laboratory; 8) Paving of sewer trenches, requiring 15, 700 tons of hot plant -mixed bituminous material and 146, 428 square yards of temporary pavement; 9) Laying a 4-inch line of transite pipe from the plant to connect with the nearest main of the San Gabriel Water Company, a distance of five -eighths of a mile. -22 - 1 _ == .,_.,„. .... - - • . . . .• • : : :-.•::-.....,,,,, . ...1:4A • • . 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CHARLES L F•CULHE AND MARION L CRIST 8 ASSOCIATES - ENGINEERS FONTANA, CALIFORNIA REPORT ON •SEWERAGE LAYOUT 1 • - 2 3 - k k <,-- c-, \77\ FOOTH / L L \777\ EL vo. 4 - . Rac Electric R / it /2 \ ARROW ROUTE , 9' Atchison }, SA/7 47 _ Fe RR _Tope?ca MERR / L L. AVE. \ 0 /3 . FO/VTA \ Rop./2,200 \ /VA ) /6 f , 'c, - ,:( •i. OCEAN 84 VO. To Ontario NE W OC AN FREEivA>r 713 8/oomington--0- Sou/hp,' SLOVE/2 - _ - /6 25 1 SANTA ANA AVE. - - _ ../11RUPA fi4cN - -' i. .. ll tu 27 AVE 28 ,crr VI k- 1 ,. . 7, 1 TREATMENT PL,4NT ' .Syf In "-Trp .(< '1, \ •::0,1,r(1 T 1 f i-i fl-f>, --A c,<M1 hr„ cj ‘.)N>' \--c„ 35 ?A ,,.. A 3s:36 4 V f- fry 3/ 32 -,7 33 --at T.*/ -S .<1-11)- c'\ G4,4, 1- ../ a g UV c--<, , a P\A , ., • :,1 _ et o 0( _ je V T-2•S 4 •• VICINITY MAP -24- i i 6 ...IA J% w L. THE BOND ISSUE In order to provide funds for the construction and installation of a new sanitation system, land acquisition, etc. , the $2, 655, 000 sewer revenue bond issue has been made up as follows: Construction, including land acquisition and contingencies $2, 313, 570 Less State Aid 122, 000 - Net cost to city $2, 191, 570 Engineering and supervision 141, 200 Interest during construction* 210, 000 Incidentals 32, 230 Bond reserve fund 80, 000 Total bond issue $2, 655, 000 *The. Consulting Engineer estimates that the construction program will require approximately nine months. Therefore, interest at the rate of 4 1/2% has been computed for the 9-month period, plus one year thereafter. LEGAL OPINION All of the proceedings in connection with these bonds are subject to the approval of Messrs. O'Melveny & Myers of Los Angeles, California. The unqualified opinion of said attorneys approving said bonds as to legality will be furnished to the purchasers at the time of delivery of the bonds. • TAX EXEMPTION In the opinion of O'Melveny & Myers, Los Angeles, California, bond'counsel for the City of Fontana, interest on the said bonds is exempt from taxation by the United States of America under present federal income tax laws, and, under present laws the bonds and interest or income from the bonds are exempt from taxation by the State of California except from gift, inheritance and estate taxes. OPERATING BUDGET The following is a proposed budget for the sanitation system for the first year of operation: Labor Superintendent $4, 800 Labor 5, 300 1 -25- Total Labor $10, 100 Materials 600 Power 600 Chemicals, chlorine 2, 000 Transportation 700 Total $14, 000 SEWER SERVICE RATES AND CHARGES The following is a brief summary of provisions relating to rates. and charges. Said summary does not purport to be complete and any bidder desiring complete information can obtain copies of the Sewer Rate Ordi- nance and other information relating to the rates from George W. Vierra, City Clerk of the City of Fontana. No connection charge shall be made for the connection of the property to the system as initially constructed during the first year after the date of completion of the initial system, Thereafter there shall be the following minimum connection charges: Second year $ 50 Third year 100 Fourth year and thereafter 150 Connections shall be made upon applications by the property owners and the application form shall contain a guaranty that all bills for service to the property and the occupants thereof will be paid. A deposit equal to four months' charges shall be made before service is rendered. Bills shall be sent every two months to the occupant of the property served or to the property owner if he has made special arrangements with the city. On the first day of the calendar month following the date of payment speci- fied in the bill the charge shall become delinquent if the bill or that portion thereof which is not in bona fide dispute remains unpaid. A delinquent bill shall be increased by a basic penalty of 10% of one month' s charges plus 1/2 of 1% per month of all unpaid charges plus basic penalty. If delinquent bills, penalties and deposits have not been paid after the time specified in the Sewer Rate Ordinance the Sewer Service shall be discon- tinued. The sewer charges given below do not provide for the handling of industrial wastes and other sewage detrimental to the normal operation or sewage treatment works. Firms having such waste must make special contracts with the city. The below sewer charges only apply within the city, and property outside may be served upon special contract, but the charge shall not be less than the charge within the city: -26- SCHEDULE OF MONTHLY CHARGES Classification Monthly Charge Residential: Single Bath Room Residence (bathroom $ 2. 85 is defined to be any room in which one or more water closets are installed for human use and are connected to the sewer system) Each Additional Bath Room . 50 Food Markets: Less than 5000 sq. ft. of total floor space More than 5000 sq. ft. of total floor space Additional charge for Commercial Garbage Grinder Beauty Shops: Less than 3 operators Three or more operators Restaurants: Less than 1000 sq. ft. of serving area 1000 to 2000 sq, ft. of serving area More than 2000 sq, ft. of serving area Bars Garages Car Wash and Wash Racks Laundromats and Laundries Poultry and Rabbit Processing Plants: Less than 4000 sq. ft. of total floor space More than 4000 sq. ft. of total floor space 5.00 20.00 15.00 5. 00 10.00 5.00 15.00 25.00 5. 00 5.00 15.00 20.00 25. 00 200. 00 Service Stations (without wash racks) 5.00 Apartments (per living unit) 1. 50 Motor Courts: 10 units or less Each additional unit over 10 Hotels and Rooming Houses: 10 units or less Each additional unit over 10 Schools: Elementary and nursery Junior High and High Schools 5.00 .40 4.00 . 30 30.00 50.00 -27- Classification Monthly Charge Churches and Meeting Halls: Without Kitchen With Kitchen Mortuaries Public Buildings Dairies Depot Theatres, bowling alleys, and amusement centers All commercial establishments not listed above and not separately classified by future action of the City Council. $ 3. 00 5.00. 10.00 5.00 10.00 4. 00 5. 00 3,25 COLLECTION AND ENFORCEMENT OF SEWER CHARGES By a 1956 amendment to California C.C. P. 117 the small claims court may be used for the collection of delinquent sewer charges. Recent 1956 amendments to the Revenue Bond Law of 1941 have furnished a procedure so that sewer charges may be made a lien upon the real property served. The City of Fontana has taken all preliminary steps necessary to the use of these lien provisions. Government Code 54355 states as follows: "The lien provided by Section 54354 shall attach when the trea- surer or other officer whose duty it is to collect the charge records a list of delinquent unpaid charges and penalties thereon with the county recorder, stating the amount of each charge and the penalty thereon, a description of the real property upon which the same is a lien and the name of the local agency to which the same is payable. Such lien shall have the same force, effect, priority and duration as to the property des- cribed as would the lien of an abstract of a judgment against the owner of the real property at the time such list is recorded and may be enforced in like manner. Property may be discharged from the lien within one year from the date of recording by the payment of all delinquent charges plus penalties. A list of all such delinquent charges shall be recorded at least every six months, but no delay or informality in recording the same shall invalidate the lien or any unpaid charge or any subsequent act or proceeding. If through error or otherwise the amount of any unpaid charge plus penalties thereon as stated in said list shall be incorrect, said error shall be disregarded and shall not affect or invalidate the filing if said error is one dollar ($1) or less. " DEBT SERVICE COVERAGE` Funds to cover debt service for the first two years in which the bonds shall be outstanding have been provided by the inclusion in the bond issue of the sum of $210, 000, representing interest requirements at 4 1/2 -28- per cent for twenty-one months, plus the use of net operating revenues which will accrue to the City during fifteen months of the first two-year period. For all years following the first two years during which the bonds will be outstanding, the City covenants with its bondholders that it will maintain sewer charges equal to .1, 5 times debt service requirements, after the payment of maintenance and operating expenses and other authorized charges. Engineering projections set forth in the accompanying "Flow of Funds" Table confirm the ability of the City to satisfactorily comply with this covenant. BOND RESERVE FUND* The sum of $80, 000 has been provided for in the bond issue to be used for establishment of a Bond Reserve Fund. Attention is directed to the summary 'of Funds and Covenants appearing on Page 32, wherein provision is made for additional payments by the City into the Bond Reserve Fund. The City pledges additions to this Bond Reserve Fund equivalent to 50 per cent of net operating surpluses for each year, until the Bond Reserve Fund has been built up to an amount of money equal to anticipated maximum annual debt service. This payment is in addition to a mandatory payment to the Fund of $6, 000 annually starting in the second year of the bond issue. Under the projected schedule of payment of these additional sums into the Bond Reserve Fund, this fund would be built up to maximum estimated annual requirements during the fifth year of the bond issue. FLOW OF FUNDS STUDY The accompanying Flow of Funds Study indicates the ability of the City to pay principal and interest on the bond issue and maintenance and operating expense. Maintenance and operation will be paid entirely out of revenues. *See Resolution for exact text of provisions referred to herein. 1 1 • 1 1 1 1 1 1 1 0 n 0 0 0 7 0' '0 R 0 00 0 0 re m Cr re 0 0 n O 0 a 0s 0 CI re ro Y 0 a 0. 0 0 a 0 m ** Interest for first year provided in bond issue. Y • 0 O 0 ng F, O O 7 m 7 o fD Y y T w DI " N 0 7 • a n w 0 Y m n ? n c 'Dr Y n a o <. O 0 a ‚(0- ' 0 n 0 p n m 2 m w •Y E^ 0 ' O O a m y m W ~ N 5 a a• m »�Y - M MO Oro O O 4.0 n 0. 0 0. 0 0 00 aCD a 4* 0 a 0 5' a 0 n 0 m •w7 m 4* La vl P 0 4,0 N N N N N N N N J T M .P W N 0 .O W J P M J.. W N- 0 .O W J O.M A w N- -29- 1 N N- - O O O .O .O .O 00 W W J J J C O. 0• M M M a a N 0• w .O 0• w .0 P W '0 .0' w -0 0• w .O 0• w .O 0. 4+ .0 0• w .0 O 0 J 4. - 00 Ja - 00 M N W M N .O P M oa N N N W 00 00 W .p .P o O a n 0 0 as .p .p 4p .0. W W W 4. W W W N N N N N N N N-- fA O 00 O• M .P w- 0 .0 00 P M .P N- 0 .0 J 0• M .P N 0 .0 M .0 0 N .O 0' .. - W M W 0 J M N .O P W- 00 M W O N M Y. N 0 W- W O• .O N M J O W P .O W P 0 .. P O M .0 N N- 0 0• M 4 W W W J J P M N- N W W .0 0 0 01 J .P 0 .' 00 - W P- W 0• .0 N P .0 N .P J P .O P W W M N .O 4. - 0 0 1 4. 4. .P M .P 4. .P .P M .P .P .P 4. .P .P .7+ .P M .A .ice M .P .O -4.0 .O .O CD .O .0 .O 0 .O .O .D .D .O .O .O .O CD0 .O ..O O .O(.O M .o .0 .O - .0 .0 .o .O .• .O .O .O 40 P 40 in (31 - v. in v.- Ln .P o M M M O M M M M 0 0 M M M M M 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 CD-0 0 0 0 0 0 0 0 0 0 0 0 M M M .P .P iP .P .P iP W W W W W W W W N N N N N N- V N .O 0• .P - M W M lM O J M N .O P A- 00 P W O 00 P N .O JM.O J ▪ J 0• O- O .0 00 W W N N- O J- N 4+ 00 .0 O O P J .P O J Y 4, NNNNNNNNNNNNNN 00000000000000000000000000 00000000000000000000000000 0 0 0 0 0 0 0 0 0,0 0 0 0 0 0 0 0 0 0.0 0 0 0 0 0 0 4, M .P 4. .P .P W W( W W W W W N N N N N N N N-- 0-0 00 P M .P 4. N 0 .0 W J M .P W N O .O W J P .P W J- J- M N 0 .0 P .P . N O 0o M .P M N .O 00 M N- .0 M W W- .0 - .P J N W P W- M J 0 W P P N .-• M M- M O O D .0 P O .A J J P 0 - 0 .O W W W N N 0 J N W W .0 0 0 P'J A 0 J 0- W P- W P .D N P .O N .P J W M N O P M a 0 0 O 0 O O 0 ;ny n 0 0 0 m � m -- r+ ---- N N N N N N N N N N N N N N N b - w M J .0 O N W M P J .0 O- N W W A. M 0 P P 0• P .". W J M W- W .P .O W P W O--- O W M- M O W WM 0 M M 0 MOMOMMMOMMMOOMMMMMMMMMMWMMON 00000000000000000000000000ba 0000000000000000000000000004 00000000000000000000000000 u iM W W W 0G W J P M .P W N- 0 0 .O W P M .C. W N M M M M O O O o 0 0 0 0 M O M 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O O O O O O O O O O O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 y0 O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N -4 O N M o 4* O • 4 0.6 0 a CO. - N w .P .. M Cr CrJ Co Co .0 .0 .O 0 0 CO P.Pw- CO PN.0.POMOM.owJo W MJ W.0.0-0.0.0- W 0.0 0 CO 0 J 0,0 W M .P - P J W A. - .P N M .P .P .P .P .5- m MOmMMN M J J J M N J J N M M M J J N M J J J J J J N N N Na N N N N N N N N N Co N .O 0 O - Y-- - 0 0 0 O0 CD .0 .0 .O M W .O W co 0• Iv .O a 0 0 0 0 .0 W J N W P.00-W OJO.O W M.P-PJ W N M J J J N N J J N N O M J J N N O M 0 M 0 M M M M M M M 0 O M M M 0 4* W J Cr M .P W-- O w M J W .O :O .0 N M.P.P A 4, 4. J J N N J J J -4 J J NNNNNNN P .0. N N 0 0 0 .O .0 .O .0 W J J P P PPP 0• P P P N J - .P .O 0 P W 0 J M W N M .O W W P M M M M P W .O .O .0 • 4, w N N N N N(3 N ▪ .0 J M W N O W J M 4.W N N 0- O O .O ..O - - 0 0 P M M Cr -4.0 0 W CD .0 Cr VIW N W N -4W 0 Cr .P 4. - W W J-- J W .P M W J W- 4. W N O O - J .D. - 4. In M N W W W J J M- O N P W O .D O M- J J W W •D P W W- W- P W- .P J- iP N .P N- .P - co W O J .P .O P M 4, .P W W W W N N N NEft ---- W O J VINO-4 M W- .0 CO P J.. w- 0 .0 CO J P .P W W- W J W- M' N .O 0 J J CO 0 N J NCO P W- 0 0 .0 .0 0 .P M .O J P V..0 .P CO- .P 4, .P 0 .O 0 .P CO 0 J .O J 0 0,0..0 M- W iP P W J 0 W .0 - .0 - .P P .P O .P O W J J M W W'- P M 0. W - W J .0 W N .P W .O N N-J M- .O W .P W M N N NN M- �. N P- M y 19 0 6 S.Cw 0 n o � m 0 n 0 O 0 a 0 w• + m a 0-3 Oa '1o0,1 Ohlc oJ t=1 0ez Oa [�1 zz.0 a 0• -30- FINANCIAL STATEMENT City of Fontana Actual Valuation, 1956-57 $55, 830, 720* Assessed Valuation, 1956-57 . 14, 764, 230 Direct Bonded Debt -0 Self -Supporting Bonded Debt (this issue) 2,655,000 Overlapping Bonded Debt 1, 175, 286** Total Direct & Overlapping Bonded Debt 1,175,286 Population (est.) 15,000 ' The San Bernardino County basis of assessment is reported by the State Board of Equalization to be 25% of actual value, with public utilities ($1, 613, 100) assessed at 50%. ** Overlapping bonded debt does not include $8, 300, 000 San Bernardino County Building Bonds authorized but not sold. ANALYSIS OF OVERLAPPING DEBT Chaffey Union High School District Assessed Valuation 1956-57 $181,881,010 Fontana Elementary School District 69,729,460 Fontana Unified School District *** 69, 729', 460 Bloomington Elementary School District 8,041,620 Colton High School District 39,685,830 San Bernardino Valley Junior College Dist. 203, 125, 250 County of San Bernardino Flood Bonds 599,152,640 Bonded Debt Applicable as of 9/30/56 Per Cent Amount $3,830,000 8.111 $ 310,651 3,284,000 21.156 400,000 21.156 345,000 .148 1,030,000 .030 640,000 .0057 3,425,000 2.464 694, 763 84, 624 511 309 36 84,392 $1,175,286 **' Fontana Unified School District withdrew from Chaffey Union High School District on October 15, 1955. -31- Fiscal Year RATIOS TO ASSESSED VALUATION Direct Debt Overlapping Debt Total Debt -0- 7. 96% 7.96% RATIOS TO ACTUAL VALUATION Direct Debt -0- Overlapping Debt 2. 11% Total Debt 2.11% PER CAPITA Actual Valuation $3, 722 Assessed Valuation 984 Direct Debt -0- Total Debt 78 TAX COLLECTIONS Tax Levy City of Fontana Delinquent June 30 Amount Per Cent 1955-56 $821, 193. 08 $17, 823. 68 1954-55 648,273.07 14,148.25 1953-54 556,264.55 14,879.16 Fontana School District 1955-56 $3,813,535.83 $47,124.99 1954-55 3,020,881.16 39,888.23 1953-54 2,468,374:44 39,467.68 1952-53 1,954,200.27 36,452.35 1951-52 1,672,143.05 26,718.22 Chaffey Union High School District 1955-56 $9,086,348.78 $105,513.22 1954-55 7,789,213.08 102,100.80 1953-54 6, 599, 940. 53 102, 555. 46 1952-53 5,363,897.11 88,503.49 1951-52 4,543,681.81 67,508.53 2.17 2.18 2.67 1.24 1.32 1.60 1.87 1.60 1.16 1.31 1. 55 1.65 1.49 -32- a a • n 4 FUNDS AND COVENANTS Accompanying this Official Statement is a copy of the Resolution authorizing the issuance of $2, 655, 000 Sewer Revenue Bonds, 1956, of the City of Fontana. The following is. a brief summary of the funds and covenants relating to the bonds. (See resolution for further information). A. Construction Fund. The proceeds of the sale of the bonds shall be placed as follows: 1. $210,000 in the Bond Service Fund; 2. $80, 000 in the Reserve Fund; 3. The balance in the Construction Fund. The money set aside and placed in the Construction Fund shall remain therein until from time to time expended for the objects and purposes for which the bonds were issued and may be invested in any authorized negotiable direct obligations of the United States provided that the maturity shall not be later than six months from the date of investment. If any sum remains in said fund after the full accomplishment of the objects and purposes for which the bonds were issued, it shall be applied to the payment of principal and interest of said bonds. B. Sewer Fund. All revenues received by the City of Fontana from the services and facilities of the sewer system shall be paid into the Sewer Fund. The first call on the Sewer Fund is for revenue bond debt, service. The second call is for Reserve Fund requirements. The third call is for the necessary and reasonable maintenance and operation costs of the sewer system. Should a surplus exist after said payments and any other payments required to perform the covenants in said resolution, 50 per cent of said surplus shall be transferred to the Reserve Fund until there is in said Reserve Fund the required amount -for the maximum annual debt service and the remaining surplus may be used for any purpose specified in said resolution, including any sewer purpose. C. Bond Service Fund. Immediately upon receiving the proceeds of the sale of the bonds $210, 000 thereof shall be placed (as stated above) in the Bond Service Fund. Said sum shall be used only to pay the interest on the bonds which will accrue during the construction period and for a period not to exceed twelve months after completion of construction. After completion of construction any remainder of said sum shall remain in the Bond Service Fund to be applied to the payment of principal of and interest on said bonds. No transfer from the Sewer Fund to the Bond Service Fund to pay, as it becomes due, the interest on the bonds need be made until twelve months after completion of construction or until the remainder of the above sum (derived from the proceeds of the sale of the bonds) is insufficient to pay, as it becomes due, the next installment of interest on the bonds. At the time of either event (whicheveroccurs sooner) and thereafter, so long as any of said bonds are outstanding, on the first day of each calendar month there shall be set aside and trans- ferred from the Sewer Fund to the Bond Service Fund sums in equal aliquot parts for each one-half year so that at least the full amount required to pay, as it becomes due, the interest on_the bonds shall be set aside in the Bond Service Fund at least one month prior to the date the installment a. • r • -33- of interest becomes due. On the first day of the calendar month twelve months after completion of construction, and thereafter, so long as any of said bonds are outstanding, on the first day of each calendar month, there shall be set aside and transferred from the .Sewer Fund to the Bond Service Fund sums in equal aliquot parts for each year so that at least the full amount required to pay, as it becomes due, any maturity or install- ment of principal of the bonds shall be set aside in the Bond Service Fund at least one month prior to the date the installment of principal becomes due. "Completion of construction's for the purpose of computing time shall not be later than twelve months after delivery of the bonds to the pur- chaser thereof. Money set aside and placed in said Bond Service Fund shall remain therein until from time to time expended for the payment of , such principal and interest, and shall not be used for any other purpose whatever, except that any such money so set aside and placed in said Bond Service Fund which at any time may be in excess of the amount which at that time is required to be in the Bond Service Fund in cash may be temporarily invested in any authorized negotiable direct obligations of the United States, provided that the maturity shall not be later than eighteen months from the date of investment but such investment shall not affect the obligation of the City to cause the full amount required by the terms _ of this section to be available in said Bond Service Fund in cash at the time required by the terms of this section. D. Reserve Fund. Immediately upon receiving the proceeds of the sale of the bonds $80, 000 thereof shall be placed (as stated above). in the Reserve Fund. On the first day of the calendar month one year after completion of construction and on the first day of each calendar month thereafter there shall be transferred from the Sewer Fund and placed in the Reserve Fund a sum not less than $500 until an amount equal to the Maximum amount required to be paid out of the Bond Service Fund in any fiscal year thereafter on account of interest to accrue and principal to become payable on the bonds has been paid into said Reserve Fund, and thereafter there shall be maintained in said Reserve Fund a sum equal to said maximum amount of annual debt service. Moneys in the Reserve Fund shall be used solely for the purpose of paying the principal of and interest on the bonds in the event that the moneys in the Bond Service Fund are insufficient therefor and for that purpose may be withdrawn and transferred to the Bond Service Fund, except that said moneys may be invested in any authorized negotiable direct obligations of the United States, provided that the maturity shall not be later than thirty-six months from the date of investment. No payment need be made into the Reserve Fund so long as there shall be in said fund a sum at least equal to said required maximum amount of annual debt service. Whenever moneys are with- drawn from the Reserve Fund to pay principal and interest on bonds, the amount in the Reserve, Fund shall be restored to the amount required by monthly transfers from the Sewer Fund made on the first day of each calendar month thereafter, each such transfer (except the last) to be not less than $5, 000. Additional payments shall be made into the Reserve Fund from surplus. E. Covenants. So long as any of the bonds are outstanding and unpaid the City covenants: 1. The City will duly and punctually pay the principal and interest on the revenue bonds and it will faithfully observe and perform all requirements of the resolution providing for their issuance. • -34- 2. The City will discharge all lawful claims which if unpaid might become a lien or charge upon the revenues prior or superior to the lien of the bonds. 3. As soon as funds are available the City will commence and complete the accomplishment of the purposes for which the bonds are issued and will complete the acquisition and construction of the sewer system not later than twelve months after delivery of the bonds. 4. The City will operate the sewer system in an efficient and economical manner and maintain and preserve said sewer system in good repair and working order. 5. The City will not sell; mortgage or dispose of the sewer system.as a whole or substantially as a whole unless provision is made for sufficient payment into the Sewer Fund to protect the bondholders. 6. The City will maintain such insurance as is customarily maintained with respect to works and property of like character against loss of or damage to such works or property. 7. The City shall keep proper books of records and accounts of the sewer system subject to inspection and will publish financial state- ments yearly. 8. No sewer or other service from the sewer system shall be furnished free and regulations for payment of bills shall include: d (a) requiring reasonable deposits except for public corporations; (b)' requiring guaranty by property owner that bills will be paid; (c) collection of reasonable penalties for nonpayment; (d) billing every two months; (e) discontinuance of service if bills not paid a reasonable time after delinquency. Connection within one year after construction by sewer producing properties not more than 200 feet from the sewer system shall be required and city inhabitants must use the sewer system exclusively. At least every six months the City Treasurer shall record a list of delinquent unpaid charges and penalties thereon with the County Recorder. If the City acquires or constructs a water system, sewer charges shall be placed on the water bill and water service discontinued for non- payment. 9. The City will prescribe rates and collect charges which will be sufficient after paying the necessary and reasonable maintenance and operation costs of,the sewer system to raise an amount equal to 1.5 times the total annual bond service requirements. -35- 10. No additional bonds may be issued having any priority over the bonds of this issue. 11. No additional revenue bonds may be issued unless: (1) for sewer purposes; (2) the City is not in default on these bonds; (3) the final maturity is not earlier than any of these bonds still outstanding, and (4) the net income before depreciation, amortization and interest chargeable to the income account of the latest prior fiscal year has amounted to at least twice the maximum interest payable in a future fiscal year and at least one and one-half times the maximum principal and interest payable in a future year. -36- We wish to thank the following for time, material and other assistance in assembling this brochure: --Kaiser Steel Corporation Public Relations,Department - -Dr. Ernest Cadwell's "History of Fontana" --San Bernardino County Board of Trade - -The Chambers of Commerce of Fontana, San Bernardino, Riverside and Colton, and ACI, Ontario --Fontana Herald -News --Lockheed Air Service, Inc. - -U. S. Postmaster, Fontana, California --Pacific Telephone & Telegraph Company --Fontana Real Estate Board --Garrett & Company, Inc. - ,-Rohr Aircraft Corporation --Ontario Daily Report - -San Bernardino Sun & Telegram - -Riverside Press & Enterprise - -Bank of America - -Citizens National Bank of Riverside --Southern California Edison Company --Southern California Gas Company - -California Electric Power Company - -San Gabriel Valley Water Company - -Chino Basin Water District - -Fontana Union Water Company -37- The information contained in this statement has been prepared by J. B. Hanauer & Co. This information is a summary of the most significent data relating to the Fontana Sewer Revenue Bonds, 1956, and has been com- piled from sources believed to be reliable, but is not guaranteed. The text dealing with resolutions and ordinances is a brief summary thereof. For complete information, copies may be obtained from George W. Vierra, City Clerk. The text dealing with the City, the project and the probable future development is intended only as general information and consists in many cases of estimates of the City, its Financial Consultant and its Consulting Engineers. No such material is to be construed as a representation of fact by the City of Fontana. Requests for additional information addressed to George W. Vierra, City Clerk, or to J. B. Hanauer & Co. will receive prompt attention. So'far as any statements in this Official Statement involve matters •of opinion, whether or not so stated, they are intended merely as such and not as representations of fact. Neither this Official Statement nor any statement which may have been made orally or in writing is to be construed as a contract with the purchasers of any of the bonds to be presently issued. All statements herein are made as of September 4, 1956, the date of approval of this document as an Official Statement, except statis- tical information and other statements where some other date is indicated by the text. APPROVED by the City Council of the City of Fontana, California, September 4, 1956.