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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 04/22/2020REGULAR BOARD MEETING In an effort to prevent the spread of COVID-19 and in accordance with Governor Newsom's Executive Order N-25-20 and N-29-20, this meeting is being conducted via teleconference. There will be no public location for attending this meeting in person. Members of the public may listen and provide public comment telephonically. Anyone wishing to join the meeting may do so using the following information: DIAL: 1-510-338-9438 and enter ACCESS CODE: 298 723 874## You may also join via webex.com: MEETING# 298 723 874 and PASSWORD: EVWD2020 Closed Session Begins at 4:30 PM April 22, 2020 - 5:30 PM 31111 Greenspot Road, Highland, CA 92346 AGENDA "In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors". CALL TO ORDER ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. AGENDA - This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. 1.Approval of Agenda RECESS INTO CLOSED SESSION CLOSED SESSION 2.CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code Section 54956.9(d)(4) One Potential Case 5:30 PM RECONVENE MEETING PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS ANNOUNCEMENT OF CLOSED SESSION ACTIONS ITEMS PUBLIC COMMENTS 3.APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a.March 11, 2020 regular board meeting minutes b.Financial Statements for March 2020 c.March 2020 Disbursements: Accounts payable disbursements for the period include check numbers 255835 through 255998, bank drafts, and ACH Payments in the amount of $6,988,698.91 and $382,746.67 for payroll. d.Investment Report for Quarter Ended March 31, 2020 INFORMATIONAL ITEMS 4.Development Activity Update DISCUSSION AND POSSIBLE ACTION ITEMS 5.Consider Adoption of Resolutions 2020.08, 2020.09, and 2020.10 to Facilitate Establishment of CFD No. 2020-01 for Highland Hills 6.Board of Directors' Reports 7.General Manager/CEO Report 8.Legal Counsel Report 9.Board of Directors' Comments ADJOURN PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District's office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District's website at www.eastvalley.org subject to staff's ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability-related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above- agendized public meeting should be directed to the District Clerk at (909) 885-4900 at least 72 hours prior to said meeting. RE PO RTS 1 Minutes 03/11/2020 sma Draft pending approval EAST VALLEY WATER DISTRICT March 11, 2020 REGULAR BOARD MEETING MINUTES The Chairman of the Board called the meeting to order at 4:30 p.m. PRESENT: Directors: Carrillo, Coats, Goodrich, Morales, Smith ABSENT: None STAFF: John Mura, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Jeff Noelte, Director of Engineering and Operations; Kelly Malloy, Director of Strategic Services; Justine Hendricksen, District Clerk; Shayla Antrim, Senior Administrative Assistant LEGAL COUNSEL: Jean Cihigoyenetche GUEST(s): Members of the public PUBLIC COMMENTS Chairman Smith declared the public participation section of the meeting open at 4:30 p.m. There being no written or verbal comments, the public participation section was closed. APPROVAL OF AGENDA M/S/C (Coats-Goodrich) that the March 11, 2020 agenda be approved as submitted. CLOSED SESSION The Board entered into Closed Session at 4:31 p.m. as provided in the Ralph M. Brown Act Government Code Sections 54957 and 54957.6 to discuss the item(s) listed on the agenda. THE BOARD RECONVENED THE MEETING AT 5:30 P.M. Chairman Smith led the flag salute. 2 Minutes 03/11/2020 sma ROLL CALL PRESENT: Directors: Carrillo, Coats, Goodrich, Morales, Smith ABSENT: None ANNOUNCEMENT OF CLOSED SESSION ACTIONS With respect to Item #2: No reportable action taken. With respect to Item #3: No reportable action taken. PUBLIC COMMENTS Chairman Smith declared the public participation section of the meeting open at 5:32 p.m. There being no written or verbal comments, the public participation section was closed. Director Coats requested that the approval of the February 12, 2020 minutes be pulled from the consent calendar and be approved as a separate item due to his absence at that meeting. M/S/C (Goodrich-Morales) that the Board amend the consent calendar and remove item #4b and approve this item separately as item #4d. APPROVE THE JANUARY 22, 2020 REGULAR BOARD MEETING MINUTES M/S/C (Goodrich-Morales) that the Board approve the January 22, 2020 regular board meeting minutes as submitted. DIRECTORS’ FEES AND EXPENSES FOR FEBRUARY 2020 M/S/C (Goodrich-Morales) that the Board approve the Directors’ fees and expenses for February 2020 as submitted. APPROVE THE FEBRUARY 12, 2020 REGULAR BOARD MEETING MINUTES M/S/C (Morales-Goodrich) that the Board approve the February 12, 2020 regular board meeting minutes as submitted. Director Coats abstained from the vote. STERLING NATURAL RESOURCE CENTER UPDATE The Director of Strategic Services provided an update on the construction progress of the Sterling Natural Resource Center. She discussed Balfour Beatty’s zero harm commitment program; she stated that the site had over 100,000 hours worked without any loss of time due to injuries. She provided information regarding the Water and Resource Management Pathway program. 3 Minutes 03/11/2020 sma An SNRC Reflections video was presented to the Board: A Look at Our Community’s Legacy - Our Regions Water History. The Director of Strategic Services responded to Mr. Wayne Brown regarding the next milestone for the SNRC; she stated that the completion of the aeration basin would be significant, but that it is hard to pinpoint only one at this time. Mr. Fred Yauger asked when the video would be available on the District’s website and he suggested that the District provide notice by email when the videos are released on the website. 2010 AND 2013 REVENUE BOND REFINANCING OPPORTUNITY The Chief Financial Officer stated that the District’s financial advisors, Fieldman Rolapp, informed staff of bond refinancing opportunities. Mr. Robert Porr of Fieldman Rolapp, provided a presentation to the Board on refinancing scenarios: he reviewed current market conditions, provided an overview of the District’s 2010 and 2013 bonds, and projected refunding savings charts of each bond. He provided his recommendations and stated that there is a potential savings of $340,000 annually on interest expense to the District. M/S/C (Goodrich-Carrillo) that the Board authorize staff to begin the process of refunding the District’s 2010 and 2013 Revenue Bonds. CONSIDER TRANSFER AGREEMENT FOR THE EAST TRUNK SEWER LINE The Director of Strategic Services stated that the Transfer Agreement for the East Trunk Sewer Line is part of the settlement agreement between the City of San Bernardino, San Bernardino Valley Municipal Water District and San Bernardino Municipal Water Department regarding the Sterling Natural Resource Center in 2017. She described the East Trunk Sewer Line location and function, and the process of the transfer with the District. M/S/C (Goodrich-Morales) that the Board authorize the General Manager/CEO to execute the Transfer Agreement for the East Trunk Sewer Line with the San Bernardino Municipal Water Department. REVISED BOARD OF DIRECTORS HANDBOOK AND POLICIES The District Clerk discussed the revisions made to the Board of Directors Handbook. She reviewed the purpose of the Handbook and stated that this was part of the Board of Directors goals and objectives. She added that the Finance and Human Resources Committee provided several suggestions that were included in the Handbook. M/S/C (Morales-Coats) that the Board approve the revised Board of Directors Handbook and Policies as submitted. 4 Minutes 03/11/2020 sma REVIEW GENERAL MANAGER/CEO ACHIEVEMENT OF GOALS & OBJECTIVES AND DETERMINATION OF PERFORMANCE AWARD Legal Counsel stated that pursuant the General Manager/CEO’s employment contract, he is entitled to an annual review of his performance by the Board of Directors to determine if his Goals and Objectives have been met for the preceding year, and to determine the overall performance of his work. He stated that in closed session matters were discussed and considered by the Board, and a consensus was reached. Pursuant to section three of his employment agreement the Board is charged with determining if the General Manager/CEO is entitled to his performance award of 10% of his annual salary. The Board praised the General Manager/CEO for his performance and leadership. M/S/C (Coats-Morales) that the Board approve the General Manager/CEO’s 10% pay for performance award in the amount of $28,148.60. AMENDMENTS TO GENERAL MANAGER/CEO EMPLOYMENT AGREEMENT Legal Counsel stated that in conjunction with the General Manager/CEO annual performance review, the services of Mr. Bill Kelly were retained by the District to negotiate on behalf of the District to negotiate certain amendments and updates of the General Manager/CEO’s contract. Legal Counsel presented the proposed amendments to the General Manager/CEO’s contract as recommended by the District’s negotiator: • Contract would be amended to three-year term: o Year 1 = 2020-2021 o Year 2 = 2021-2022 o Year 3 = 2022-2023 • Cost of Living Increases Per Year to Annual Salary: o Year 1 = 5% o Year 2 = 3% o Year 3 = 3% • Annual Retirement Contribution Increase 401(a): o Year 1 = $20,000 o Year 2 = $22,000 o Year 3 = $24,000 • Vacation Days Per Year: o Year 1 = 35 o Year 2 = 37 o Year 3 = 4 • Automobile Allowance increase from $1,000 to $1,200 per month M/S/C (Morales-Coats) that the Board approve amendments to the General Manager/CEO’s Employment Agreement as presented. APPROVAL OF GENERAL MANAGER/CEO’S 2020/21 GOALS AND OBJECTIVES The General Manager/CEO’s stated that the Chairman and Vice-Chairman of the Board discussed and developed goals and objectives that reflect the priorities included in the 5 Minutes 03/11/2020 sma Five-Year Plan, to be completed by the General Manager/CEO within a one-year time frame. He read aloud each of the proposed FY 2020/21 goals and objectives to the Board. Director Carrillo stated that the goals are realistic. Vice Chairman Goodrich stated that a lot of work goes into creating the goals and objectives. Director Morales stated that these are not run-of-the-mill goals and objectives and they will stretch him professionally. Director Coats stated that the General Manager/CEO always stretches himself to a higher level. M/S/C (Morales-Coats) that the Board approve the 2020/21 General Manager/CEO’s Goals and Objectives as submitted. BOARD OF DIRECTORS’ REPORTS Director Carrillo reported on the following: March 4 he viewed the San Bernardino City Council meeting; and March 11 he participated in San Bernardino County Water Conference Planning Committee meeting. Vice Chairman Goodrich reported on the following: March 2 he met with State legislators in Sacramento; March 5 he met with the District’s consultant, Mr. Bill Kelly, to discuss the General Manager/CEO’s contract negotiations; and March 5 he met with the General Manager/CEO to review the agenda. Director Coats reported on the following: February 28 he attended the Inland Empire Economic Partnership Leadership class; March 3 he attended San Bernardino Valley Municipal Water District Board meeting; and March 10 he met with the General Manager/CEO to discuss District business. Director Morales reported on the following: March 5 he attended the East Valley Association of Realtors meeting, held at the District, where the General Manager/CEO provided an update on the progress of the SNRC; March 6 he participated in the Association of California Water Agencies Region 9 teleconference where they discussed local education; and March 10 he attended the San Bernardino Board of Water Commissioners meeting where they discussed cost of service fees. Chairman Smith reported on the following: March 2 he met with State legislators in Sacramento where updates on the SNRC were provided; March 5 he met with the District’s consultant, Mr. Bill Kelly, to discuss the General Manager/CEO’s goals and objectives for the upcoming year, and met with the General Manager/CEO to review the agenda; and March 6 he attended a tour of Plant 39 reservoir where he viewed progress of maintenance being performed. Information only. 6 Minutes 03/11/2020 sma GENERAL MANAGER/CEO REPORT The General Manager/CEO stated that he appreciates the positive comments from the community; he thanked the Board and staff for their kind words and support. He stated that he appreciates the support he received from community leaders and that he looks forward to leading the organization for the next three years. Information only. LEGAL COUNSEL REPORT No report at this time. BOARD OF DIRECTORS’ COMMENTS Director Coats stated that he looks forward to seeing members of the community at future board meetings. Director Morales stated that he appreciates staff and the General Manager/CEO for taking the time to provide an update on the Sterling Natural Resource Center to the Board of Realtors. He also thanked the Chairman and Vice Chairman for creating goals and objectives for the General Manager/CEO; and commended the General Manager/CEO on his performance. Vice Chairman Goodrich thanked everyone for attending the meeting. Chairman Smith thanked everyone for attending the Board meeting and congratulated the General Manager/CEO on his performance. Information only. ADJOURN The meeting adjourned at 7:19 p.m. ___________________________ David E. Smith, Board President __________________________ John Mura, Secretary R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: Brian Tomp kins C hief F inancial O fficer B OAR D AG E N D A S TAF F R E P O RT Agenda Item #3.b. Meeting Date: April 22, 2020 C ons ent Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: F inanc ial S tatements fo r Marc h 2020 R E COMME N D AT IO N: S taff recommends that the Board o f Direc tors (Board ) ac cept and file the attached financial s tatements as o f, and fo r the perio d end ed, Marc h 31, 2020. B AC KG R O UN D / AN ALYS IS : Inc luded herewith fo r the Board’s review is a summary of Eas t Valley Water Dis trict’s financial res ults , as o f March 31, 2020. AGE N C Y GOALS AN D OB J E C T IVE S: G oal and O b jec tives I I - Maintain a C o mmitment to S us tainab ility, Trans p arency, and Ac countability a) P rac tic e Transparent and Ac countable F isc al Management R E VIE W B Y O T HE R S : T his agend a item has been reviewed b y the F inanc e Department. F IS CAL IMPAC T T here is no fis cal imp ac t as s oc iated with this agend a item. ATTAC H M E NTS: Description Type M arch 2 020 Financial Statement Mo nthly Review Backup Material M arch 2 020 Financial Statements Backup Material FINANCIAL STATEMENTS MONTHLY REVIEW MARCH 31, 2020 page | 1 FINANCIAL STATEMENTS MONTHLY REVIEW MARCH 31, 2020 page | 2 FINANCIAL STATEMENTS MONTHLY REVIEW MARCH 31, 2020 page | 3 FINANCIAL STATEMENTS MONTHLY REVIEW MARCH 31, 2020 page | 4 FINANCIAL STATEMENTS MONTHLY REVIEW MARCH 31, 2020 page | 5 FINANCIAL STATEMENTS MONTHLY REVIEW MARCH 31, 2020 page | 6 FINANCIAL STATEMENTS MONTHLY REVIEW MARCH 31, 2020 page | 7 WATER WASTEWATER DISTRICT TOTAL Assets: Current Assets: 01 Cash and Cash Equivalents 8,723,733.35$ -$ 8,723,733.35$ 02 Investments 3,225,157.89 1,503,759.69 4,728,917.58 03 Accounts Receivable, Net 3,685,695.14 270,813.79 3,956,508.93 04 ‐ Interest Receivable 5,951.06 3,377.19 9,328.25 14*05 Other Receivables 393,685.28 - 393,685.28 07 Due from Sewer Fund 13,952,267.35 - 13,952,267.35 06 Due from Other Governments 58,144.57 16,101,867.46 16,160,012.03 08 Inventory 509,119.38 6,721.16 515,840.54 09 Prepaid Expenses 245,439.60 29,346.26 274,785.86 30,799,193.62 17,915,885.55 48,715,079.17 Non-Current Assets: 10 Restricted Cash and Cash Equivalents 5,488,232.27 3,929,205.95 9,417,438.22 11 Capital Assets not being Depreciated 10,017,170.93 64,586,020.00 74,603,190.93 13 Capital Assets, Net 107,157,069.78 19,398,261.16 126,555,330.94 122,662,472.98 87,913,487.11 210,575,960.09 Total Assets:153,461,666.60 105,829,372.66 259,291,039.26 Deferred Outflow Of Resources 24*Deferred Charge on Refunding 102,610.45 - 102,610.45 25 Deferred Outflows - Pensions 2,720,647.39 818,040.61 3,538,688.00 156,284,924.44 106,647,413.27 262,932,337.71 Current Liabilities: 22 Accounts Payable and Accrued Expenses 702,573.15 29,959.97 732,533.12 29 Due to Water Fund - 13,952,267.35 13,952,267.35 23 Accrued Payroll and Benefits 2,648.54 - 2,648.54 15 Customer Service Deposits 1,555,665.66 - 1,555,665.66 16 Construction Advances and Retentions 109,800.67 2,670,200.75 2,780,001.42 17 Accrued Interest Payable 368,329.02 52,493.75 420,822.77 18 Current Portion of Compensated Absences 352,523.20 70,440.80 422,964.00 19 Current Portion of Long-Term Debt 2,286,028.45 127,957.51 2,413,985.96 5,377,568.69 16,903,320.13 22,280,888.82 Non-Current Liabilities: 20 Compensated Absences, less current portion 163,621.54 19,741.90 183,363.44 28 Net Pension Liability 8,394,844.82 2,452,110.18 10,846,955.00 21 Long Term Debt, Less Current Portion 40,561,559.33 48,263,009.62 88,824,568.95 27 Other Liabilities 1,173.64 406,809.24 407,982.88 Deferred Inflows Of Resources 26 Deferred Inflows - Pensions 513,098.67 160,544.33 673,643.00 49,634,298.00 51,302,215.27 100,936,513.27 55,011,866.69 68,205,535.40 123,217,402.09 31 Equity 93,752,554.20 30,643,122.62 124,395,676.82 93,752,554.20 30,643,122.62 124,395,676.82 Tot Total Revenue 20,453,706.15 16,975,901.48 37,429,607.63 Tot Total Expense 12,933,202.60 9,177,146.23 22,110,348.83 7,520,503.55 7,798,755.25 15,319,258.80 101,273,057.75 38,441,877.87 139,714,935.62 156,284,924.44$ 106,647,413.27$ 262,932,337.71$ Unaudited As of March 31, 2020 Combining Schedule of Net Position Total Equity and Current Surplus (Deficit): Total Assets and Deferred Outflows of Resources: Total Current Assets: Total Non-Current Assets: Total Liabilities, Equity and Current Surplus (Deficit): Total Total Beginning Equity: Equity: Revenues Over/Under Expenses Total Current Liabilities: Total Non-Current and Deferred Inflows of Resources: Total Liabilities and Deferred Inflows of Resources: Page 1 of 8 ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 1,018,980.32$ 12,804,752.35$ 15,900,000.00$ -$ -$ -$ 15,900,000.00$ 3,095,247.65$ 42 Meter Charges 754,548.94 6,777,126.60 8,980,000.00 - - - 8,980,000.00 2,202,873.40 43 Penalties 15,098.57 361,462.70 471,000.00 4,716.34 31,674.51 200,000.00 671,000.00 277,862.79 44 Wastewater System Charges - - - 375,752.89 3,512,980.46 4,648,000.00 4,648,000.00 1,135,019.54 45 Wastewater Treatment Charges - - - 673,510.74 6,504,106.66 8,665,000.00 8,665,000.00 2,160,893.34 46 Other Operating Revenue 127,529.84 325,309.18 - 148,883.00 164,170.50 2,000.00 2,000.00 (487,479.68) 47 Non Operating Revenue 3,439.03 182,817.82 284,000.00 - 6,760,731.85 50,000.00 334,000.00 (6,609,549.67) 48 Gain or Loss on Disposition - 2,237.50 - - 2,237.50 - - (4,475.00) 56 Benefits - - - - - - - - 68 Depreciation - - - - - - - - Revenue Total: 1,919,596.70 20,453,706.15 25,635,000.00 1,202,862.97 16,975,901.48 13,565,000.00 39,200,000.00 1,770,392.37 - - - - - Expense by Category 51 Labor 379,914.09 3,350,740.62 5,214,300.00 105,473.43 878,789.85 1,375,700.00 6,590,000.00 2,360,469.53 56 Benefits 139,175.24 2,195,517.13 2,822,250.00 39,376.24 562,424.83 754,750.00 3,577,000.00 819,058.04 63 Contract Services 394,060.32 2,746,865.02 3,765,750.00 776,555.69 7,226,623.70 9,655,250.00 13,421,000.00 3,447,511.28 65 Professional Development 20,133.84 163,149.94 295,250.00 4,542.08 52,040.88 106,750.00 402,000.00 186,809.18 53 Overtime 20,471.41 274,786.84 291,350.00 1,034.82 13,260.08 57,650.00 349,000.00 60,953.08 62 Materials and Supplies 107,334.58 1,044,552.74 1,275,700.00 9,471.27 81,018.62 129,300.00 1,405,000.00 279,428.64 64 Utilities 166,372.66 1,660,486.39 2,426,400.00 10,849.21 73,062.22 185,600.00 2,612,000.00 878,451.39 52 Temporary Labor 1,319.35 14,666.18 - 565.43 6,285.51 - - (20,951.69) 67 Other 7,686.12 409,914.15 358,000.00 3,318.31 174,438.96 153,000.00 511,000.00 (73,353.11) 54 Standby 2,502.00 24,518.32 33,000.00 368.00 4,214.08 2,000.00 35,000.00 6,267.60 61 Water Supply 5,060.50 261,294.47 1,067,000.00 - - - 1,067,000.00 805,705.53 71 -Debt Service 23,001.73 2,580,270.58 4,066,000.00 - 209,987.50 312,000.00 4,378,000.00 1,587,741.92 81 -Capital Improvement 107,095.34 2,032,205.26 3,125,000.00 4,022,762.81 26,916,013.96 200,000.00 3,325,000.00 (25,623,219.22) 82 -Capital Outlay 114,930.18 595,765.13 895,000.00 4,680.02 563,593.61 633,000.00 1,528,000.00 368,641.26 83 -Accounting Income Add back (222,025.52) (4,421,530.17) - (4,027,442.83) (27,584,607.57) - - 32,006,137.74 Expense Total: 1,267,031.84 12,933,202.60 25,635,000.00 951,554.48 9,177,146.23 13,565,000.00 39,200,000.00 17,089,651.17 Total Surplus (Deficit): 652,564.86$ 7,520,503.55$ -$ 251,308.49$ 7,798,755.25$ -$ -$ -$ Unaudited Revenue and Expense Budget-to-Actual by Category Month Ended March 31, 2020 WATER WASTEWATER DISTRICT WIDE Page 2 of 8 ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 1,018,980.32$ 12,804,752.35$ 15,900,000.00$ -$ -$ -$ 15,900,000.00$ 3,095,247.65$ 42 Meter Charges 754,548.94 6,777,126.60 8,980,000.00 - - - 8,980,000.00 2,202,873.40 43 Penalties 15,098.57 361,462.70 471,000.00 4,716.34 31,674.51 200,000.00 671,000.00 277,862.79 44 Wastewater System Charges - - - 375,752.89 3,512,980.46 4,648,000.00 4,648,000.00 1,135,019.54 45 Wastewater Treatment Charges - - - 673,510.74 6,504,106.66 8,665,000.00 8,665,000.00 2,160,893.34 46 Other Operating Revenue 127,529.84 325,309.18 - 148,883.00 164,170.50 2,000.00 2,000.00 (487,479.68) 47 Non Operating Revenue 3,439.03 182,817.82 284,000.00 - 6,760,731.85 50,000.00 334,000.00 (6,609,549.67) Revenue Total: 1,919,596.70 20,453,706.15 25,635,000.00 1,202,862.97 16,975,901.48 13,565,000.00 39,200,000.00 1,770,392.37 - - - - - Program1000 - Board of Directors 22,176.32 109,920.78 179,900.00 9,399.54 45,404.29 77,100.00 257,000.00 101,674.93 Program2000 - General Administration 78,092.65 619,356.76 912,800.00 31,731.69 240,544.85 391,200.00 1,304,000.00 444,098.39 Program2100 - Human Resources 42,684.07 678,158.15 716,800.00 18,302.53 285,030.13 307,200.00 1,024,000.00 60,811.72 Program2200 - Public Affairs 46,311.48 603,111.21 1,054,200.00 26,110.26 297,102.41 385,800.00 1,440,000.00 539,786.38 Program2300 - Conservation 22,976.82 257,408.78 589,000.00 - - - 589,000.00 331,591.22 Program3000 - Finance 59,111.44 591,127.01 874,600.00 25,370.62 257,538.36 374,400.00 1,249,000.00 400,334.63 Program3200 - Information Technology 41,455.93 350,645.23 652,400.00 18,504.38 150,314.78 279,600.00 932,000.00 431,039.99 Program3300 - Customer Service 88,162.09 738,732.00 1,238,200.00 27,450.57 233,225.76 376,800.00 1,615,000.00 643,042.24 Program3400 - Meter Service 17,220.39 187,220.48 295,000.00 - 621.80 - 295,000.00 107,157.72 Program4000 - Engineering 63,931.78 627,087.29 1,085,700.00 18,718.33 243,215.58 465,300.00 1,551,000.00 680,697.13 Program5000 - Water Production 223,092.51 2,836,618.89 4,667,000.00 - - - 4,667,000.00 1,830,381.11 Program5100 - Water Treatment 92,402.74 630,673.52 870,000.00 - - - 870,000.00 239,326.48 Program5200 - Water Quality 38,016.67 313,323.85 461,000.00 - - - 461,000.00 147,676.15 Program6000 - Field Maintenance Administration 32,818.32 238,132.26 391,500.00 4,032.06 30,373.66 43,500.00 435,000.00 166,494.08 Program6100 - Water Maintenance 238,181.65 2,347,084.36 2,317,000.00 - - - 2,317,000.00 (30,084.36) Program6200 - Wastewater Maintenance - - - 750,067.70 7,100,741.11 9,479,000.00 9,479,000.00 2,378,258.89 Program7000 - Facilities Maintenance 96,478.99 637,196.23 806,500.00 17,195.55 135,422.70 191,500.00 998,000.00 225,381.07 Program7100 - Fleet Maintenance 40,916.26 380,695.00 437,400.00 4,671.25 52,623.30 48,600.00 486,000.00 52,681.70 Program8000 - Capital 23,001.73 786,710.80 8,086,000.00 - 104,987.50 1,145,000.00 9,231,000.00 (23,666,836.04) Total Surplus (Deficit):652,564.86$ 7,520,503.55$ -$ 251,308.49$ 7,798,755.25$ -$ -$ -$ Revenue and Expense Budget-to-Actual by Program Month Ended March 31, 2020 Unaudited WATER WASTEWATER DISTRICT WIDE Page 3 of 8 ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 1,018,980.32$ 12,804,752.35$ 15,900,000.00$ -$ -$ -$ 15,900,000.00$ 3,095,247.65$ 42 Meter Charges 754,548.94 6,777,126.60 8,980,000.00 - - - 8,980,000.00 2,202,873.40 43 Penalties 15,098.57 361,462.70 471,000.00 4,716.34 31,674.51 200,000.00 671,000.00 277,862.79 44 Wastewater System Charges - - - 375,752.89 3,512,980.46 4,648,000.00 4,648,000.00 1,135,019.54 45 Wastewater Treatment Charges - - - 673,510.74 6,504,106.66 8,665,000.00 8,665,000.00 2,160,893.34 46 Other Operating Revenue 127,529.84 325,309.18 - 148,883.00 164,170.50 2,000.00 2,000.00 (487,479.68) 47 Non Operating Revenue 3,439.03 182,817.82 284,000.00 - 6,760,731.85 50,000.00 334,000.00 (6,609,549.67) 48 Gain or Loss on Disposition - 2,237.50 - - 2,237.50 - - (4,475.00) 56 Benefits - - - - - - - - 68 Depreciation - - - - - - - - Revenue Total: 1,919,596.70 20,453,706.15 25,635,000.00 1,202,862.97 16,975,901.48 13,565,000.00 39,200,000.00 1,770,392.37 Program: 1000 - Board of Directors - - - 51 Labor 4,777.50$ 38,958.16$ 73,500.00$ 2,047.50$ 16,537.50$ 31,500.00$ 105,000.00$ 49,504.34$ 56 Benefits 4,020.72 46,611.51 59,500.00 1,723.16 19,976.51 25,500.00 85,000.00 18,411.98 62 Materials and Supplies - 1,179.01 700.00 - 505.30 300.00 1,000.00 (684.31) 63 Contract Services 12,250.00 12,250.00 7,700.00 5,250.00 5,250.00 3,300.00 11,000.00 (6,500.00) 65 Professional Development 1,128.10 10,922.10 38,500.00 378.88 3,134.98 16,500.00 55,000.00 40,942.92 Program: 1000 - Board of Directors Total: 22,176.32 109,920.78 179,900.00 9,399.54 45,404.29 77,100.00 257,000.00 101,674.93 Program: 2000 - General Administration - - - 51 Labor 42,747.63 259,618.67 361,900.00 18,320.45 103,278.02 155,100.00 517,000.00 154,103.31 53 Overtime 174.87 1,221.46 2,100.00 74.95 523.50 900.00 3,000.00 1,255.04 56 Benefits 10,450.16 179,994.23 226,800.00 2,742.01 62,614.84 97,200.00 324,000.00 81,390.93 62 Materials and Supplies 1,004.68 3,173.36 4,200.00 430.58 1,360.04 1,800.00 6,000.00 1,466.60 63 Contract Services 22,149.79 112,682.22 237,300.00 9,492.77 45,911.25 101,700.00 339,000.00 180,406.53 64 Utilities 149.44 1,069.07 2,100.00 64.04 458.18 900.00 3,000.00 1,472.75 65 Professional Development 1,416.08 61,597.75 78,400.00 606.89 26,399.02 33,600.00 112,000.00 24,003.23 Program: 2000 - General Administration Total: 78,092.65 619,356.76 912,800.00 31,731.69 240,544.85 391,200.00 1,304,000.00 444,098.39 Program: 2100 - Human Resources - - - - 51 Labor 11,704.84 106,908.69 159,600.00 5,016.36 45,818.14 68,400.00 228,000.00 75,273.17 52 Temporary Labor 471.92 471.92 - 202.25 202.25 - - (674.17) 53 Overtime 58.29 1,033.68 2,100.00 24.99 443.01 900.00 3,000.00 1,523.31 56 Benefits 17,986.44 95,332.73 97,300.00 7,708.39 40,842.78 41,700.00 139,000.00 2,824.49 62 Materials and Supplies 458.15 942.77 7,000.00 196.35 404.03 3,000.00 10,000.00 8,653.20 63 Contract Services 2,393.89 30,755.07 61,600.00 1,025.94 13,180.73 26,400.00 88,000.00 44,064.20 64 Utilities 26.61 241.84 700.00 11.40 103.61 300.00 1,000.00 654.55 65 Professional Development 1,841.20 35,447.24 31,500.00 798.54 9,596.62 13,500.00 45,000.00 (43.86) 67 Other 7,742.73 407,024.21 357,000.00 3,318.31 174,438.96 153,000.00 510,000.00 (71,463.17) Program: 2100 - Human Resources Total: 42,684.07 678,158.15 716,800.00 18,302.53 285,030.13 307,200.00 1,024,000.00 60,811.72 Month Ended March 31, 2020 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Page 4 of 8 ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended March 31, 2020 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 2200 - Public Affairs - - - - 51 Labor 25,539.81 214,688.78 434,000.00 10,302.09 89,634.99 120,000.00 554,000.00 249,676.23 52 Temporary Labor - - - - - - - - 53 Overtime 353.32 2,131.97 4,900.00 151.41 954.44 2,100.00 7,000.00 3,913.59 56 Benefits 7,254.85 113,358.82 179,200.00 2,956.89 52,985.10 76,800.00 256,000.00 89,656.08 62 Materials and Supplies 3,998.57 11,948.04 116,200.00 3,285.34 18,162.58 49,800.00 166,000.00 135,889.38 63 Contract Services 8,108.93 244,559.36 275,100.00 8,835.88 124,903.78 117,900.00 393,000.00 23,536.86 64 Utilities 220.63 7,762.77 16,100.00 220.63 6,172.31 6,900.00 23,000.00 9,064.92 65 Professional Development 835.37 8,661.47 28,700.00 358.02 4,289.21 12,300.00 41,000.00 28,049.32 Program: 2200 - Public Affairs Total: 46,311.48 603,111.21 1,054,200.00 26,110.26 297,102.41 385,800.00 1,440,000.00 539,786.38 Program: 2300 - Conservation - - - - 51 Labor 12,478.53 91,233.04 101,000.00 - - - 101,000.00 9,766.96 52 Temporary Labor - - - - - - - - 53 Overtime - 1,196.03 3,000.00 - - - 3,000.00 1,803.97 56 Benefits 2,515.08 25,185.40 30,000.00 - - - 30,000.00 4,814.60 62 Materials and Supplies 2,340.44 95,758.62 223,000.00 - - - 223,000.00 127,241.38 63 Contract Services 5,529.58 37,448.34 200,000.00 - - - 200,000.00 162,551.66 64 Utilities 113.19 3,319.19 22,000.00 - - - 22,000.00 18,680.81 65 Professional Development - 3,268.16 10,000.00 - - - 10,000.00 6,731.84 Program: 2300 - Conservation Total: 22,976.82 257,408.78 589,000.00 - - - 589,000.00 331,591.22 Program: 3000 - Finance - - - - 51 Labor 34,420.38 315,517.43 474,600.00 14,722.05 134,985.59 203,400.00 678,000.00 227,496.98 52 Temporary Labor - - - - - - - - 53 Overtime - 3,289.62 3,500.00 - 1,409.82 1,500.00 5,000.00 300.56 56 Benefits 9,995.86 210,956.69 263,200.00 4,369.87 90,663.44 112,800.00 376,000.00 74,379.87 62 Materials and Supplies 127.63 3,939.81 7,700.00 54.71 1,688.47 3,300.00 11,000.00 5,371.72 63 Contract Services 12,815.95 48,357.69 104,300.00 5,473.29 24,940.49 44,700.00 149,000.00 75,701.82 64 Utilities 122.74 1,036.94 2,800.00 52.60 444.39 1,200.00 4,000.00 2,518.67 65 Professional Development 1,628.88 7,947.63 17,500.00 698.10 3,406.16 7,500.00 25,000.00 13,646.21 67 Other - 81.20 1,000.00 - - - 1,000.00 918.80 Program: 3000 - Finance Total: 59,111.44 591,127.01 874,600.00 25,370.62 257,538.36 374,400.00 1,249,000.00 400,334.63 Program: 3200 - Information Technology - - - - 51 Labor 10,819.46 102,532.42 240,800.00 5,264.96 44,570.59 103,200.00 344,000.00 196,896.99 52 Temporary Labor - - - - - - - - 53 Overtime - - - - - - - - 56 Benefits 1,710.11 41,140.36 70,700.00 842.41 17,041.75 30,300.00 101,000.00 42,817.89 62 Materials and Supplies 4,089.02 16,340.94 25,900.00 1,752.44 7,003.25 11,100.00 37,000.00 13,655.81 63 Contract Services 24,317.45 185,529.90 299,600.00 10,421.75 79,512.78 128,400.00 428,000.00 162,957.32 64 Utilities 342.55 2,794.78 3,500.00 146.81 1,197.75 1,500.00 5,000.00 1,007.47 65 Professional Development 177.34 2,306.83 11,900.00 76.01 988.66 5,100.00 17,000.00 13,704.51 Program: 3200 - Information Technology Total: 41,455.93 350,645.23 652,400.00 18,504.38 150,314.78 279,600.00 932,000.00 431,039.99 Page 5 of 8 ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended March 31, 2020 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 3300 - Customer Service - - - - 51 Labor 14,716.20 143,238.97 240,800.00 7,841.87 62,923.00 103,200.00 344,000.00 137,838.03 52 Temporary Labor 847.43 14,194.26 - 363.18 6,083.26 - - (20,277.52) 53 Overtime 509.66 3,428.52 3,500.00 323.30 1,574.23 1,500.00 5,000.00 (2.75) 56 Benefits 7,858.00 117,791.78 147,000.00 3,820.26 50,954.00 63,000.00 210,000.00 41,254.22 62 Materials and Supplies 111.77 3,389.56 6,300.00 47.90 1,452.69 2,700.00 9,000.00 4,157.75 63 Contract Services 49,752.79 390,151.11 716,700.00 8,885.61 83,357.04 153,300.00 870,000.00 396,491.85 64 Utilities 13,949.08 61,597.09 110,700.00 5,978.17 26,398.76 48,300.00 159,000.00 71,004.15 65 Professional Development 473.77 2,131.97 13,200.00 190.28 482.78 4,800.00 18,000.00 15,385.25 67 Other (56.61) 2,808.74 - - - - - (2,808.74) Program: 3300 - Customer Service Total: 88,162.09 738,732.00 1,238,200.00 27,450.57 233,225.76 376,800.00 1,615,000.00 643,042.24 Program: 3400 - Meter Service - - - - 51 Labor 13,129.13 121,054.75 187,000.00 - 517.04 - 187,000.00 65,428.21 53 Overtime - 1,323.03 10,000.00 - - - 10,000.00 8,676.97 56 Benefits 3,494.65 57,432.65 83,000.00 - 104.76 - 83,000.00 25,462.59 62 Materials and Supplies 244.81 1,973.47 5,000.00 - - - 5,000.00 3,026.53 63 Contract Services 234.45 4,528.07 8,000.00 - - - 8,000.00 3,471.93 64 Utilities 117.35 908.51 2,000.00 - - - 2,000.00 1,091.49 65 Professional Development - - - - - - - - Program: 3400 - Meter Service Total: 17,220.39 187,220.48 295,000.00 - 621.80 - 295,000.00 107,157.72 Program: 4000 - Engineering - - - - 51 Labor 33,017.12 326,063.16 491,400.00 14,150.09 139,740.86 210,600.00 702,000.00 236,195.98 52 Temporary Labor - - - - - - - - 53 Overtime - 642.14 1,400.00 - 275.20 600.00 2,000.00 1,082.66 56 Benefits 8,556.25 165,374.49 212,800.00 3,684.76 71,078.46 91,200.00 304,000.00 67,547.05 62 Materials and Supplies 1,292.49 5,551.21 16,100.00 553.93 2,379.09 6,900.00 23,000.00 15,069.70 63 Contract Services 18,699.04 64,612.63 202,300.00 36.43 25,408.67 86,700.00 289,000.00 198,978.70 64 Utilities 2,203.74 60,279.85 137,200.00 223.21 2,619.89 58,800.00 196,000.00 133,100.26 65 Professional Development 163.14 4,563.81 24,500.00 69.91 1,713.41 10,500.00 35,000.00 28,722.78 Program: 4000 - Engineering Total: 63,931.78 627,087.29 1,085,700.00 18,718.33 243,215.58 465,300.00 1,551,000.00 680,697.13 Program: 5000 - Water Production - - - - 51 Labor 50,154.67 439,597.72 709,000.00 - - - 709,000.00 269,402.28 53 Overtime 1,773.55 22,634.70 61,000.00 - - - 61,000.00 38,365.30 54 Standby 1,320.00 11,296.00 15,000.00 - - - 15,000.00 3,704.00 56 Benefits 15,802.37 346,918.00 461,000.00 - - - 461,000.00 114,082.00 61 Water Supply 5,060.50 261,294.47 1,067,000.00 - - - 1,067,000.00 805,705.53 62 Materials and Supplies 17,018.26 179,308.16 299,000.00 - - - 299,000.00 119,691.84 63 Contract Services 16,733.89 348,697.90 381,000.00 - - - 381,000.00 32,302.10 64 Utilities 114,808.27 1,218,948.58 1,664,000.00 - - - 1,664,000.00 445,051.42 65 Professional Development 421.00 7,923.36 10,000.00 - - - 10,000.00 2,076.64 Program: 5000 - Water Production Total: 223,092.51 2,836,618.89 4,667,000.00 - - - 4,667,000.00 1,830,381.11 Page 6 of 8 ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended March 31, 2020 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 5100 - Water Treatment - - - - 51 Labor 17,068.81 160,636.83 242,000.00 - - - 242,000.00 81,363.17 53 Overtime 4,162.26 37,864.81 25,000.00 - - - 25,000.00 (12,864.81) 56 Benefits 6,549.69 123,419.60 139,000.00 - - - 139,000.00 15,580.40 62 Materials and Supplies 1,276.99 136,465.50 165,000.00 - - - 165,000.00 28,534.50 63 Contract Services 54,041.07 82,172.06 149,000.00 - - - 149,000.00 66,827.94 64 Utilities 9,303.92 90,114.72 150,000.00 - - - 150,000.00 59,885.28 Program: 5100 - Water Treatment Total: 92,402.74 630,673.52 870,000.00 - - - 870,000.00 239,326.48 Program: 5200 - Water Quality - - - - 51 Labor 13,094.41 120,118.79 176,000.00 - - - 176,000.00 55,881.21 53 Overtime 73.62 1,730.37 15,000.00 - - - 15,000.00 13,269.63 56 Benefits 3,706.50 73,165.58 82,000.00 - - - 82,000.00 8,834.42 62 Materials and Supplies 2,513.40 13,547.92 18,000.00 - - - 18,000.00 4,452.08 63 Contract Services 18,628.74 104,220.76 162,000.00 - - - 162,000.00 57,779.24 64 Utilities - - 2,000.00 - - - 2,000.00 2,000.00 65 Professional Development - 540.43 6,000.00 - - - 6,000.00 5,459.57 Program: 5200 - Water Quality Total: 38,016.67 313,323.85 461,000.00 - - - 461,000.00 147,676.15 Program: 6000 - Field Maintenance Administration - - - - 51 Labor 12,548.54 106,016.31 170,100.00 1,382.64 11,597.02 18,900.00 189,000.00 71,386.67 52 Temporary Labor - - - - - - - - 53 Overtime - - 18,000.00 - - 2,000.00 20,000.00 20,000.00 54 Standby 1,182.00 13,222.32 18,000.00 368.00 4,214.08 2,000.00 20,000.00 2,563.60 56 Benefits 4,863.27 88,922.92 124,200.00 630.97 10,575.40 13,800.00 138,000.00 38,501.68 62 Materials and Supplies (336.68) (4,814.54) 2,700.00 5.86 81.95 300.00 3,000.00 7,732.59 63 Contract Services 186.96 1,136.50 900.00 20.78 126.22 100.00 1,000.00 (262.72) 64 Utilities 2,325.27 15,844.06 36,900.00 258.36 1,760.45 4,100.00 41,000.00 23,395.49 65 Professional Development 12,048.96 17,804.69 20,700.00 1,365.45 2,018.54 2,300.00 23,000.00 3,176.77 Program: 6000 - Field Maintenance Administration Total: 32,818.32 238,132.26 391,500.00 4,032.06 30,373.66 43,500.00 435,000.00 166,494.08 Program: 6100 - Water Maintenance - - - - 51 Labor 69,252.28 672,189.26 957,000.00 - - - 957,000.00 284,810.74 53 Overtime 11,937.09 185,660.93 130,000.00 - - - 130,000.00 (55,660.93) 56 Benefits 28,859.79 414,926.87 527,000.00 - - - 527,000.00 112,073.13 62 Materials and Supplies 62,393.15 482,121.12 301,000.00 - - - 301,000.00 (181,121.12) 63 Contract Services 64,887.34 574,054.18 402,000.00 - - - 402,000.00 (172,054.18) 64 Utilities 852.00 18,132.00 - - - - - (18,132.00) Program: 6100 - Water Maintenance Total: 238,181.65 2,347,084.36 2,317,000.00 - - - 2,317,000.00 (30,084.36) Program: 6200 - Wastewater Maintenance - - - - 51 Labor - - - 22,848.22 196,267.15 313,000.00 313,000.00 116,732.85 53 Overtime - - - 47.52 4,261.81 45,000.00 45,000.00 40,738.19 56 Benefits - - - 9,394.30 121,489.68 173,000.00 173,000.00 51,510.32 62 Materials and Supplies - - - 744.31 19,708.67 36,000.00 36,000.00 16,291.33 Wastewater Treatment - - - 673,510.74 6,504,106.66 7,610,000.00 7,610,000.00 1,105,893.34 63 Contract Services - - - 43,522.61 254,907.14 1,302,000.00 1,302,000.00 1,047,092.86 Program: 6200 - Wastewater Maintenance Total:- - - 750,067.70 7,100,741.11 9,479,000.00 9,479,000.00 2,378,258.89 Page 7 of 8 ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended March 31, 2020 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 7000 - Facilities Maintenance - - - - 51 Labor 8,875.11 81,267.06 120,000.00 2,958.33 27,242.04 40,000.00 160,000.00 51,490.90 53 Overtime 1,225.95 12,253.38 11,250.00 408.63 4,104.42 3,750.00 15,000.00 (1,357.80) 56 Benefits 3,906.35 57,334.76 69,750.00 1,301.96 19,586.74 23,250.00 93,000.00 16,078.50 62 Materials and Supplies 5,422.12 48,690.67 45,500.00 1,435.41 13,448.82 10,500.00 56,000.00 (6,139.49) 63 Contract Services 65,158.09 350,657.91 396,250.00 8,302.39 46,870.78 62,750.00 459,000.00 61,471.31 64 Utilities 11,891.37 86,957.95 163,000.00 2,788.83 24,158.40 51,000.00 214,000.00 102,883.65 65 Professional Development - 34.50 750.00 - 11.50 250.00 1,000.00 954.00 Program: 7000 - Facilities Maintenance Total: 96,478.99 637,196.23 806,500.00 17,195.55 135,422.70 191,500.00 998,000.00 225,381.07 - - Program: 7100 - Fleet Maintenance - - - - 51 Labor 5,569.67 51,100.58 75,600.00 618.87 5,677.91 8,400.00 84,000.00 27,221.51 53 Overtime 261.09 1,409.88 2,700.00 29.01 156.66 300.00 3,000.00 1,433.46 56 Benefits 1,586.86 36,617.06 47,700.00 176.27 4,068.36 5,300.00 53,000.00 12,314.58 62 Materials and Supplies 5,379.78 45,037.12 32,400.00 964.44 14,823.73 3,600.00 36,000.00 (23,860.85) 63 Contract Services 18,172.36 155,051.32 162,000.00 1,777.50 18,148.16 18,000.00 180,000.00 6,800.52 64 Utilities 9,946.50 91,479.04 113,400.00 1,105.16 9,748.48 12,600.00 126,000.00 24,772.48 65 Professional Development - - 3,600.00 - - 400.00 4,000.00 4,000.00 Program: 7100 - Fleet Maintenance Total: 40,916.26 380,695.00 437,400.00 4,671.25 52,623.30 48,600.00 486,000.00 52,681.70 - - Program: 8000 - Capital - - - 71 -Debt Service 23,001.73 2,580,270.58 4,066,000.00 - 209,987.50 312,000.00 4,378,000.00 1,587,741.92 81 -Capital Improvement 107,095.34 2,032,205.26 3,125,000.00 4,022,762.81 26,916,013.96 200,000.00 3,325,000.00 (25,623,219.22) 82 -Capital Outlay 114,930.18 595,765.13 895,000.00 4,680.02 563,593.61 633,000.00 1,528,000.00 368,641.26 83 -Accounting Income Add back (222,025.52) (4,421,530.17) - (4,027,442.83) (27,584,607.57) - - 32,006,137.74 Program: 8000 - Capital Total: 23,001.73 786,710.80 8,086,000.00 - 104,987.50 1,145,000.00 9,231,000.00 8,339,301.70 Total Surplus (Deficit): 652,564.86$ 7,520,503.55$ -$ 251,308.49$ 7,798,755.25$ -$ -$ -$ Page 8 of 8 B OAR D AG E N D A S TAF F R E P O RT Agend a Item #3.c. Meeting Date: April 22, 2020 C ons ent Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: March 2020 Dis bursements : Ac counts p ayable disbursements for the p eriod inc lud e c heck numb ers 255835 through 255998, bank d rafts , and A C H P ayments in the amo unt o f $6,988,698.91 and $382,746.67 fo r payroll. R E COMME N D AT IO N: S taff rec o mmend s that the Board o f Directo rs (Bo ard ) review and ap prove the Dis trict’s expense dis b urs ements fo r the period March 1, 2020 through March 31, 2020 in the amo unt o f $7,371,445,58. B AC KG R O UN D / AN ALYS IS : In the c o ntinued effort to b e fis c ally trans parent, the payment register fo r sup p lies, materials , servic es , and p ayro ll fo r March 2020 is attac hed fo r review and ap p roval. T his pro cess provides the Board and the p ub lic an o pportunity to review the exp ens es o f the Dis tric t. Acc o unts P ayable is p roc es s ed weekly, while p ayro ll is p roc es s ed b i-weekly. I nfo rmatio n to jus tify each expend iture is available through the F inance Department. Ac counts p ayab le dis b urs ements fo r the perio d inc lude c hec k numbers 255835 through 255998, b ank drafts, and AC H P ayments in the amo unt o f $6,988,698.91 and $382,746.67, for payro ll. S ignific ant expenses greater than or equal to $50,000 are further explained b elo w: R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: Brian Tomp kins C hief F inancial O fficer AGE N C Y GOALS AN D OB J E C T IVE S: G oal and O b jec tives I I - Maintain a C o mmitment to S us tainab ility, Trans p arency, and Ac countability a) P rac tic e Transparent and Ac countable F isc al Management R E VIE W B Y O T HE R S : T his agend a item has been reviewed b y the F inanc e Department. F IS CAL IMPAC T S uffic ient fund s have b een b ud geted in the ad o p ted F Y 2019-20 Bud get. ATTAC H M E NTS: Description Type M arch 2 020 P ayment Register Backup Material PAYMENT REGISTER MARCH 1, 2020 - MARCH 31, 2020 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 3/4/2020 255835 RAUL GONZALES 333.97 3/4/2020 255836 CATAMOUNT PROPERTIES 2018 LLC 146.34 3/4/2020 255837 KENT YANG 115.68 3/4/2020 255838 MP DIRECT INVESTMENTS LLC C/O RON MCKAY 120.00 3/4/2020 255839 AMAZON.COM, LLC 11,010.51 3/4/2020 255840 AMERICAN FIDELITY ASSURANCE COMPANY (FSA) 1,244.16 3/4/2020 255841 ANTHESIS 12,220.25 3/4/2020 255842 AT&T 1,595.92 3/4/2020 255843 AUTO UPHOLSTERY INC. 129.12 3/4/2020 255844 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 148.82 3/4/2020 255845 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 148.82 3/4/2020 255846 COLONIAL LIFE, PREMIUM 582.66 3/4/2020 255847 CULLIGAN OF ONTARIO 129.60 3/4/2020 255848 DANIELS TIRE SERVICE, INC 649.06 3/4/2020 255849 DESERT HOT SPRINGS HIGH SCHOOL 1,000.00 3/4/2020 255850 DIRECTV 248.98 3/4/2020 255851 DONEGAN TREE SERVICE 3,195.00 3/4/2020 255852 EARTHCON CONSULTANTS CA, INC 875.71 3/4/2020 255853 EVERSOFT, INC 223.32 3/4/2020 255854 EWING IRRIGATION PRODUCTS INC 505.16 3/4/2020 255855 FIRST CHOICE SERVICES 750.07 3/4/2020 255856 GARY YOUNG 674.17 3/4/2020 255857 HIGHLAND COMMUNITY NEWS 1,146.63 3/4/2020 255858 INLAND WATER WORKS SUPPLY CO 8,072.36 3/4/2020 255859 K & L HARDWARE 205.75 3/4/2020 255860 LIEBERT CASSIDY WHITMORE LCW 32.50 3/4/2020 255861 MOBILE OCCUPATIONAL SERVICES, INC 340.00 3/4/2020 255862 PETAS CAR CARE- KEVIN KOHRELL 256.99 3/4/2020 255863 SO CAL GAS 762.01 3/4/2020 255864 STANTEC CONSULTING SERVICES, INC. 4,870.00 3/4/2020 255865 UNIFIRST CORPORATION 407.64 3/4/2020 255866 UNITED SITE SERVICES OF CALIFORNIA, INC 300.97 3/4/2020 255867 VERIZON 1,311.30 3/11/2020 255868 OPENDOOR PROPERTY LLC 70.04 3/11/2020 255869 MARGARET RYAN 100.00 3/11/2020 255870 SHAO ZHENG 11.69 3/11/2020 255871 ALFREDO MORENO 1,687.30 3/11/2020 255872 MATICH CORPORATION 557.45 3/11/2020 255873 AMERICAN ASPHALT 3,127.32 3/11/2020 255874 HONGVAN TRUONG 125.60 3/11/2020 255875 SUPER PROPERTY SOLUTION LLC. 2,136.20 3/12/2020 255876 AMERICAN FIDELITY ASSURANCE COMPANY 2,580.40 3/12/2020 255877 APPLEONE EMPLOYMENT SERVICE 498.96 3/12/2020 255878 BURGESS MOVING & STORAGE 1,248.60 PAYMENT REGISTER MARCH 1, 2020 - MARCH 31, 2020 Page 1 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 3/12/2020 255879 DONEGAN TREE SERVICE 2,800.00 3/12/2020 255880 EXPERIAN 283.00 3/12/2020 255881 EYE MED VISION CARE 1,365.56 3/12/2020 255882 FAIRVIEW FORD SALES,INC 45.11 3/12/2020 255883 HARPER & ASSOCIATES ENGINEERING, INC 11,972.00 3/12/2020 255884 HATFIELD BUICK 202.72 3/12/2020 255885 INLAND WATER WORKS SUPPLY CO 23,471.46 3/12/2020 255886 LIEBERT CASSIDY WHITMORE LCW 280.00 3/12/2020 255887 LOWE'S 1,321.03 3/12/2020 255888 PETAS CAR CARE- KEVIN KOHRELL 2,650.26 3/12/2020 255889 QUADIENT FINANCE USA, INC. 654.53 3/12/2020 255890 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 19,187.19 3/12/2020 255891 SOUTH COAST A Q M D 557.42 3/12/2020 255892 SOUTHERN CALIFORNIA EDISON COMPANY 23.67 3/12/2020 255893 SOUTHERN CALIFORNIA EMERGENCY MEDICINE/COLTON 228.89 3/12/2020 255894 SYRINIX, INC. 18,614.01 3/12/2020 255895 UNIFIRST CORPORATION 610.57 3/12/2020 255896 VALERO MARKETING & SUPPLY COMP 9,145.74 3/16/2020 255902 ANGELA CHAIN 100.00 3/16/2020 255903 DANNY CARRASCO 300.00 3/16/2020 255904 DEBRA TAYLOR 100.00 3/16/2020 255905 GERALD WALKER 150.00 3/16/2020 255906 HERBERT REITSAM 100.00 3/16/2020 255907 JENNIFER ANGELINI 259.98 3/16/2020 255908 JENNY CARRILLO 150.00 3/16/2020 255909 JODIE MORTIMORE 200.00 3/16/2020 255910 KLYDE LAYON 200.00 3/16/2020 255911 ROSALINDA CHRISMAN 150.00 3/16/2020 255912 STACY CERNY 51.96 3/16/2020 255913 STEVEN NGUYEN 100.00 3/18/2020 255897 LAKE PLACE HOMES LLC 56.83 3/18/2020 255898 ROSA HERNANDEZ 663.89 3/18/2020 255899 MATTHEW GRIFFIN 59.23 3/18/2020 255900 WALRCK INC ATTORNEY 77.79 3/18/2020 255901 JAQUISHA POWELL 44.63 3/18/2020 255914 CHARLES MACMILLAN FIAGBENU 44.87 3/18/2020 255915 ALTERNATIVE HOSE INC 20.26 3/18/2020 255916 AMERICAN FIDELITY ASSURANCE COMPANY (FSA) 1,244.16 3/18/2020 255917 ANTHESIS 2,156.00 3/18/2020 255918 APPLEONE EMPLOYMENT SERVICE 711.65 3/18/2020 255919 BALFOUR BEATTY INFRASTRUCTURE, INC 3,043,425.70 3/18/2020 255920 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 346.85 3/18/2020 255921 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 1,503.74 3/18/2020 255922 CHEM-TECH INTERNATIONAL INC 2,860.56 3/18/2020 255923 COUNTY OF SAN BERNARDINO, DEPT OF PUBLIC WORKS 852.00 3/18/2020 255924 DEPARTMENT OF CONSUMER AFFAIRS 250.00 3/18/2020 255925 DIB'S SAFE & LOCK SERVICE 680.92 3/18/2020 255926 EAST VALLEY WATER DISTRICT 2,500.00 3/18/2020 255927 ESRI 25,000.00 3/18/2020 255928 FEDERAL EXPRESS CORPORATION 66.78 3/18/2020 255929 FIELDMAN, ROLAPP & ASSOCIATES 10,019.64 3/18/2020 255930 FLEET MANAGEMENT DEPARTMENT 1,873.73 3/18/2020 255931 GOVERNMENT FINANCE OFFICERS ASSOCIATION 150.00 PAYMENT REGISTER MARCH 1, 2020 - MARCH 31, 2020 Page 2 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 3/18/2020 255932 HAJOCA CORPORATION 235.73 3/18/2020 255933 HATFIELD BUICK 986.36 3/18/2020 255934 HIGHLAND COMMUNITY NEWS 1,292.08 3/18/2020 255935 HIGHLAND SENIOR CENTER 500.00 3/18/2020 255936 INLAND WATER WORKS SUPPLY CO 11,950.93 3/18/2020 255937 J&R CONCRETE PRODUCTS, INC 3,814.35 3/18/2020 255938 K & L HARDWARE 205.80 3/18/2020 255939 KELLY ASSOCIATES MANAGEMENT GROUP LLC 17,500.00 3/18/2020 255940 KONICA MINOLTA 936.60 3/18/2020 255941 KOPPEL & GRUBER PUBLIC FINANCE 3,890.00 3/18/2020 255942 PILAR ONATE 14,175.00 3/18/2020 255943 RESOLUTE 4,200.00 3/18/2020 255944 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 653,670.10 3/18/2020 255945 SOUTHERN CALIFORNIA EDISON COMPANY 119,327.93 3/18/2020 255946 U.S. BANCORP SERVICE CENTER 25,847.67 3/18/2020 255952 UNIFIRST CORPORATION 509.93 3/18/2020 255953 UNITED REFRIGERATION INC 65.79 3/19/2020 255954 FACILITY RENTAL REFUND CHECKS 3/19/20 KB 672.50 3/19/2020 255955 FACILITY RENTAL REFUND CHECKS 3/19/20 KB 1,175.00 3/20/2020 255956 JIMMY CONNER 68.09 3/20/2020 255957 CAPITAL INVESTMENTS LLC JCM 73.38 3/20/2020 255958 JCM CAPITAL INVESTMENTS LLC 109.33 3/24/2020 255959 FACILITY REFUND CHECKS 3/25/2020 KB 600.00 3/24/2020 255960 FACILITY REFUND CHECKS 3/25/2020 KB 650.00 3/26/2020 255961 ABEL GUILLEN, DBA ABEL'S DETAILING 1,600.00 3/26/2020 255962 ANTHESIS 1,935.00 3/26/2020 255963 ASPEN ENVIRONMENTAL GROUP 472.50 3/26/2020 255964 AT&T 1,676.85 3/26/2020 255965 BEAR VALLEY MUTUAL WATER COMPANY 4,360.50 3/26/2020 255966 CHEM-TECH INTERNATIONAL INC 4,515.52 3/26/2020 255967 CITY OF SAN BERNARDINO, PUBLIC WORKS DEPT 1,682.94 3/26/2020 255968 DAILY JOURNAL CORPORATION 268.40 3/26/2020 255969 DENTAL HEALTH SERVICES 281.10 3/26/2020 255970 DINO PERUGINO, COMMERCIAL TRANSPORTATION SERVICES 11,550.64 3/26/2020 255971 FRANCHISE TAX BOARD 800.00 3/26/2020 255972 HACH COMPANY 1,214.28 3/26/2020 255973 IB CONSULTING, LLC 15,600.00 3/26/2020 255974 INLAND WATER WORKS SUPPLY CO 8,569.50 3/26/2020 255975 METROPOLITAN LIFE INS CO 104.55 3/26/2020 255976 MIA VALENZUELA 700.00 3/26/2020 255977 NATIONAL AUTO FLEET GROUP, CHEVROLET OF WATSONVILLE 36,749.19 3/26/2020 255978 ORANGE COUNTY COASTKEEPER, INC 1,500.00 3/26/2020 255979 PETAS CAR CARE- KEVIN KOHRELL 3,132.18 3/26/2020 255980 SO CAL GAS 13.92 3/26/2020 255981 SOUTHERN CALIFORNIA EDISON COMPANY 9,165.80 3/26/2020 255982 SOUTHERN CALIFORNIA EMERGENCY MEDICINE/COLTON 155.00 3/26/2020 255983 SUNBELT RENTAL, INC 66,541.01 3/26/2020 255984 THE HOME DEPOT PRO 417.05 3/26/2020 255985 TYLER TECHNOLOGIES, INC 2,915.00 3/26/2020 255986 UNIFIRST CORPORATION 411.04 3/26/2020 255987 UPS, UNITED PARCEL SERVICE, INC. 24.52 3/26/2020 255988 VERIZON 1,311.30 PAYMENT REGISTER MARCH 1, 2020 - MARCH 31, 2020 Page 3 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 3/26/2020 255989 WESTLAND GROUP, INC. 8,700.00 3/26/2020 255990 WOODARD & CURRAN INC. 15,129.75 3/31/2020 255998 Facility Refund Check 4/1/2020 KB 777.50 BANK DRAFTS 3/2/2020 DFT0003683 CALPERS/ MEDICAL 92,540.72 3/2/2020 DFT0003691 Beyond Merch 319.58 3/3/2020 DFT0003690 AUTHNET GATEWAY BILLING 20.69 3/3/2020 DFT0003693 TRANSFIRST DISCOUNT 291.23 3/4/2020 DFT0003682 CALPERS/ DEFERRED COMPENSATION 18,524.99 3/4/2020 DFT0003684 CALPERS/ RETIREMENT 41,580.27 3/4/2020 DFT0003689 STATE DISBURSEMENT UNIT 2,678.62 3/4/2020 DFT0003692 PayNearMe, Inc. 127.36 3/6/2020 DFT0003681 CA SDI Tax 2,277.56 3/6/2020 DFT0003685 Federal Payroll Tax 24,207.49 3/6/2020 DFT0003686 Medicare 6,604.90 3/6/2020 DFT0003687 Social Security 174.30 3/6/2020 DFT0003688 State Payroll Tax 9,687.15 3/9/2020 DFT0003694 CA SDI Tax 271.71 3/9/2020 DFT0003695 Medicare 787.94 3/10/2020 DFT0003701 FORTE, ACH DIRECT INC, ACH FEES 3,724.34 3/10/2020 DFT0003703 TRANSFIRST DISCOUNT 12,736.67 3/11/2020 DFT0003702 PayNearMe, Inc. 244.77 3/13/2020 DFT0003697 CA SDI Tax 85.39 3/13/2020 DFT0003698 Federal Payroll Tax 1,484.16 3/13/2020 DFT0003699 Medicare 247.64 3/13/2020 DFT0003700 State Payroll Tax 638.85 3/16/2020 DFT0003705 CA SDI Tax 281.50 3/16/2020 DFT0003706 Federal Payroll Tax 3,854.05 3/16/2020 DFT0003707 Medicare 816.30 3/16/2020 DFT0003708 State Payroll Tax 2,012.30 3/19/2020 DFT0003712 CALPERS/ DEFERRED COMPENSATION 18,386.12 3/19/2020 DFT0003713 CALPERS/ RETIREMENT 42,030.79 3/19/2020 DFT0003717 STATE DISBURSEMENT UNIT 2,678.62 3/19/2020 DFT0003719 PayNearMe, Inc. 342.28 3/20/2020 DFT0003711 CA SDI Tax 2,601.04 3/20/2020 DFT0003714 Federal Payroll Tax 26,489.55 3/20/2020 DFT0003715 Medicare 7,543.08 3/20/2020 DFT0003716 Social Security 1,236.60 3/20/2020 DFT0003718 State Payroll Tax 10,670.22 3/23/2020 DFT0003720 CBB 1,882.54 3/24/2020 DFT0003721 PayNearMe, Inc. 169.15 3/24/2020 DFT0003722 VERIFONE INC 22.00 3/31/2020 DFT0003734 PayNearMe, Inc. 155.22 ACH PAYMENTS 3/4/2020 10007139 ACI PAYMENTS INC. 49.95 3/4/2020 10007140 ADVANTAGE FLEET WASH, INC 275.00 3/4/2020 10007141 ALLEN WILLIAMS 598.60 3/4/2020 10007142 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS 123.96 3/4/2020 10007143 B&A BLAIS & ASSOCIATES INC 1,075.00 3/4/2020 10007144 BARRY'S SECURITY SERVICES, INC 1,853.47 3/4/2020 10007145 CALIFORNIA FUELS & LUBRICANTS 1,502.77 PAYMENT REGISTER MARCH 1, 2020 - MARCH 31, 2020 Page 4 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 3/4/2020 10007146 CALIFORNIA TOOL & WELDING SUPPLY 137.11 3/4/2020 10007147 CARBON ACTIVATED CORP 52,871.00 3/4/2020 10007148 CAROL CALES 642.87 3/4/2020 10007149 CLARK PEST CONTROL 258.00 3/4/2020 10007150 CLEARFLY COMMUNATIONS 1,337.68 3/4/2020 10007151 DANGELO CO INC 2,090.76 3/4/2020 10007152 DANIEL DAVIS 495.90 3/4/2020 10007153 DAVID HERNANDEZ 431.95 3/4/2020 10007154 ELISEO OCHOA 649.61 3/4/2020 10007155 EVWD EMPLOYEES EVENTS ASSOC 395.42 3/4/2020 10007156 EXCEL LANDSCAPE, ICN 143.78 3/4/2020 10007157 FRONTIER COMMUNICATIONS 774.81 3/4/2020 10007158 GARY STURDIVAN 606.56 3/4/2020 10007159 GENESIS INDUSTRIAL SUPPLY, INC 3,107.51 3/4/2020 10007160 GERALD SIEVERS 606.56 3/4/2020 10007161 GOLDEN STATE LABOR COMPLIANCE, LLC 4,750.00 3/4/2020 10007162 GORDON GRANT 518.10 3/4/2020 10007163 GRAINGER 683.99 3/4/2020 10007164 HAAKER EQUIPMENT COMPANY & TOTAL CLEAN 366.69 3/4/2020 10007165 HOPKINS TECHNICAL PRODUCTS INC 720.00 3/4/2020 10007166 INDUSTRIAL RUBBER & SUPPLY 167.89 3/4/2020 10007167 INFOSEND, INC 839.63 3/4/2020 10007168 J COMM, INC. 3,375.00 3/4/2020 10007169 JEREMY SUBRIAR 281.00 3/4/2020 10007170 JOSE MILLAN 3,000.00 3/4/2020 10007171 LEGEND PUMP AND WELL 13,275.00 3/4/2020 10007172 MANAGED MOBILE, INC. 871.85 3/4/2020 10007173 MCMASTER-CARR 1,035.74 3/4/2020 10007174 MERLIN JOHNSON CONSTRUCTION 31,981.12 3/4/2020 10007175 MICHAEL HENDERSON 591.44 3/4/2020 10007176 MIKE J. ROQUET CONSTRUCTION INC 3,525.00 3/4/2020 10007177 MINUTEMAN PRESS OF RANCHO CUCAMONGA 1,419.12 3/4/2020 10007178 NATIONAL CONSTRUCTION RENTALS 158.49 3/4/2020 10007179 PARKHOUSE TIRE, INC 971.06 3/4/2020 10007180 POLLARDWATER 390.90 3/4/2020 10007181 QUINN COMPANY 5,484.03 3/4/2020 10007182 REBECCA KASTEN 529.31 3/4/2020 10007183 REDLANDS OFFICE CLEANING SOLUTIONS, LLC 1,170.00 3/4/2020 10007184 ROBERT MARTIN 700.00 3/4/2020 10007185 STAPLES BUSINESS ADVANTAGE 58.57 3/4/2020 10007186 STEPHANIE MICHELE GUIDA 3,112.50 3/4/2020 10007187 STUBBIES PROMOTIONS INC 1,402.63 3/4/2020 10007188 THE GRANT FARM (MOMENTUM) 131.25 3/4/2020 10007189 ULTIMATE TOWING & RECOVERY 175.00 3/4/2020 10007190 UNDERGROUND SERVICE ALERT 1,662.67 3/4/2020 10007191 US BANCORP, GOVERNMENT LEASING AND FINANCE, INC 227,275.58 3/4/2020 10007192 USA BLUE BOOK, HD SUPPLY FACILITIES MAINT, LTD 310.40 3/4/2020 10007193 VULCAN MATERIALS CO/ CALMAT CO 654.13 3/12/2020 10007194 AIRGAS, USA LLC 230.36 3/12/2020 10007195 ASBCSD 102.00 3/12/2020 10007196 BARRY'S SECURITY SERVICES, INC 1,853.47 3/12/2020 10007197 CALIFORNIA FUELS & LUBRICANTS 393.50 3/12/2020 10007198 CINTAS CORPORATION (FIRST AID) 183.28 PAYMENT REGISTER MARCH 1, 2020 - MARCH 31, 2020 Page 5 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 3/12/2020 10007199 CLINICAL LAB OF S B 18,385.50 3/12/2020 10007200 COMPUTERIZED EMBROIDERY COMPANY, INC 2,370.88 3/12/2020 10007201 CORELOGIC SOLUTIONS, LLC 360.50 3/12/2020 10007202 DANGELO CO INC 2,656.68 3/12/2020 10007203 FERGUSON ENTERPRISES, INC. 10,114.93 3/12/2020 10007204 FILARSKY & WATT LLP 387.50 3/12/2020 10007205 INFOSEND, INC 35,919.66 3/12/2020 10007206 INLAND COUNTY WATER ASSOCIATION (ICWA) 75.00 3/12/2020 10007207 JC LAW FIRM 5,475.00 3/12/2020 10007208 LESLIE'S POOL SUPPLIES, INC. 47.00 3/12/2020 10007209 LINCOLN NATIONAL LIFE INS CO. 2,168.98 3/12/2020 10007210 MANAGED HEALTH NETWORK 231.84 3/12/2020 10007211 MERLIN JOHNSON CONSTRUCTION 11,440.49 3/12/2020 10007212 MIKE J. ROQUET CONSTRUCTION INC 20,600.00 3/12/2020 10007213 MONTROSE AIR QUALITY SERVICES, LLC 850.00 3/12/2020 10007214 MSC INDUSTRIAL SUPPLY CO/ SID TOOL CO, INC 1,028.62 3/12/2020 10007215 POWERSTRIDE BATTERY CO. 188.26 3/12/2020 10007216 RBC RESOURCES 940.00 3/12/2020 10007217 S AND S SUPPLIES & SOLUTIONS 1,092.69 3/12/2020 10007218 SHRED-IT US JV LLC 136.24 3/12/2020 10007219 ULTIMATE TOWING & RECOVERY 325.00 3/16/2020 10007220 JUANA MORENO 200.00 3/18/2020 10007221 ADVANTAGE FLEET WASH, INC 250.00 3/18/2020 10007222 AMERICAN RENTALS, INC 62.71 3/18/2020 10007223 ANAERGIA TECHNOLOGIES LLC 713,303.89 3/18/2020 10007224 ASHOK K. DHINGRA, AKD CONSULTING 12,052.15 3/18/2020 10007225 BARRY'S SECURITY SERVICES, INC 1,827.36 3/18/2020 10007226 BOOT BARN, INC 300.00 3/18/2020 10007227 COUNTY OF SAN BERNARDINO, RECORDER- CLERK 300.00 3/18/2020 10007228 CUES, INC. 2,634.88 3/18/2020 10007229 ENERSPECT MEDICAL SOLUTIONS 455.54 3/18/2020 10007230 EVWD EMPLOYEES EVENTS ASSOC 440.42 3/18/2020 10007231 EXCEL LANDSCAPE, ICN 5,130.00 3/18/2020 10007232 FERGUSON ENTERPRISES, INC. 49,524.60 3/18/2020 10007233 FRONTIER COMMUNICATIONS 485.29 3/18/2020 10007234 FRONTIER COMMUNICATIONS 593.05 3/18/2020 10007235 GROUP DELTA CONSULTANTS, INC 36,008.00 3/18/2020 10007236 HUB CONSTRUCTION SPECIALTIES, INC. 408.25 3/18/2020 10007237 INLAND DESERT SECURITY & COMMUNICATIONS, INC 599.70 3/18/2020 10007238 INLAND MARKETING GROUP, IMG JEFF WHITMAN 160.00 3/18/2020 10007239 JC LAW FIRM 7,920.00 3/18/2020 10007240 MANAGED HEALTH NETWORK 235.20 3/18/2020 10007241 MANAGED MOBILE, INC. 1,991.27 3/18/2020 10007242 MCCALL'S METER SALES & SERVICE 101.45 3/18/2020 10007243 MCMASTER-CARR 311.84 3/18/2020 10007244 MINUTEMAN PRESS OF RANCHO CUCAMONGA 3,578.15 3/18/2020 10007245 MUFG UNION BANK N.A. 478,907.71 3/18/2020 10007246 ORION SYSTEMS INTEGRATORS LLC 2,000.00 3/18/2020 10007247 PARKHOUSE TIRE, INC 170.91 3/18/2020 10007248 PATTON'S SALES CORP 50.37 3/18/2020 10007249 PLUS 1 PERFORMANCE 1,889.51 3/18/2020 10007250 QUINN COMPANY 164.12 3/18/2020 10007251 REDLINE MOBILE FLEET SERVICE & REPAIR 2,674.80 PAYMENT REGISTER MARCH 1, 2020 - MARCH 31, 2020 Page 6 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 3/18/2020 10007252 ROUNSVILLE'S AUTO BODY 654.73 3/18/2020 10007253 SSCI, INC. DBA-SAFETY COMPLIANCE COMPANY 400.00 3/18/2020 10007254 STAPLES BUSINESS ADVANTAGE 409.82 3/18/2020 10007255 VERIZON WIRELESS 5,839.78 3/18/2020 10007257 VISTA PAINTS 327.02 3/18/2020 10007258 VULCAN MATERIALS CO/ CALMAT CO 713.91 3/26/2020 10007259 ACI PAYMENTS INC. 50.25 3/26/2020 10007260 ADCOMP SYSTEMS 319.29 3/26/2020 10007261 ANTHONY POOL SERVICE, JAMES ANTHONY LOGSDON 245.00 3/26/2020 10007262 B&A BLAIS & ASSOCIATES INC 1,100.00 3/26/2020 10007263 BARRY'S SECURITY SERVICES, INC 3,956.44 3/26/2020 10007264 CINTAS CORPORATION (FIRST AID) 514.57 3/26/2020 10007265 CLARK PEST CONTROL 223.00 3/26/2020 10007266 COMPUTERIZED EMBROIDERY COMPANY, INC 334.03 3/26/2020 10007267 DAMON RUSSELL 71.82 3/26/2020 10007268 EXCEL LANDSCAPE, ICN 21,970.00 3/26/2020 10007269 FERGUSON ENTERPRISES, INC. 46,332.50 3/26/2020 10007270 FRONTIER COMMUNICATIONS 791.22 3/26/2020 10007271 HDR ENGINEERING, INC. 849.50 3/26/2020 10007272 HUB CONSTRUCTION SPECIALTIES, INC. 2,263.94 3/26/2020 10007273 ICMA-RC 20,000.00 3/26/2020 10007274 ILAND INTERNET SOLUTIONS CORP 1,931.80 3/26/2020 10007275 INFOSEND, INC 19,537.96 3/26/2020 10007276 JOSE MILLAN 2,990.00 3/26/2020 10007277 LANDS END INC 361.22 3/26/2020 10007279 MCMASTER-CARR 194.60 3/26/2020 10007280 MIKE J. ROQUET CONSTRUCTION INC 56,695.85 3/26/2020 10007281 MSC INDUSTRIAL SUPPLY CO/ SID TOOL CO, INC 1,397.17 3/26/2020 10007282 MUFG UNION BANK, N.A. 292,419.55 3/26/2020 10007283 PATTON'S SALES CORP 199.86 3/26/2020 10007284 PRINCIPAL FINANCIAL GROUP 10,574.38 3/26/2020 10007285 S AND S SUPPLIES & SOLUTIONS 24.83 3/26/2020 10007286 SOUTHWEST HYDROTECH 284.38 3/26/2020 10007287 STAPLES BUSINESS ADVANTAGE 2,500.86 3/26/2020 10007288 STUBBIES PROMOTIONS INC 4,491.69 3/26/2020 10007289 TROY ALARM, INC. 192.00 3/26/2020 10007290 VISTA PAINTS 81.76 3/26/2020 10007291 VULCAN MATERIALS CO/ CALMAT CO 712.78 3/26/2020 10007292 WAXIE SANITARY SUPPLY 1,895.83 TOTAL 6,988,698.91$ PAYMENT REGISTER MARCH 1, 2020 - MARCH 31, 2020 Page 7 of 7 B OARD AGE ND A S TAF F RE P ORT Agend a Item #3.d. Meeting Date: April 22, 2020 C ons ent Item To: G overning Bo ard Memb ers From: G eneral Manager/C E O S ubject: Inves tment R eport for Q uarter Ended March 31, 2020 R E C OMME ND AT IO N: S taff reco mmend s that the Bo ard of Directors ac cept and file the attac hed Investment R epo rt fo r the quarter ended, Marc h 31, 2020. B ACKGR O UN D / AN ALYS IS : C alifornia G overnment C ode §53646(b) requires the T reasurer or C F O of a local agency to submit a quarterly report on the agency’s investments to the legislative body of the agency within 30 days of the end of each quarter. T he attached I nvestment R eport shows all of the D istrict’s cash and investments, restricted and unrestricted, as of March 31, 2020. Attachment A presents the investment securities purchased and retired during the quarter J anuary to March 2020. I ncreases and decreases in highly liquid funds, such as L AI F, are explained in the narrative below. Unrestricted Investments L AI F T he balance held in the Loc al Agency Inves tment F und at the beginning o f the quarter was $5,683,201. Interes t earned during the previous quarter of 64,980 was posted to the acco unt in January. T here were 1 transfer in fo r $13,500,000 and 1 trans fers out for 4,000,000 during the q uarter totaling $9,500,000 res ulting in a balanc e o f $15,248,181, at the end of the q uarter. L AI F earnings fo r the quarter ended Marc h 31, 2020 were $73,105, c alc ulated at an app ortio nment rate of 2.03%; do wn fro m 2.29% which had been in effect for the p revious quarter. T he earnings were p os ted to the Distric t’s ac c ount on April 15, 2020. C itizen’s Bus ines s Bank (C B B) Wealth Management T he total (b ook) value of the ass ets held with C BB inc reas ed $22,275 to $5,832,141 during the quarter ended March 31, 2020. T he balance in this ac co unt is held bo th in a mo ney market acc ount ($459,468) and in a $5,372,673 po rtfolio of Treas ury and fed eral agency s ec urities s hown on Attac hment A. Net interest payments received o n securities in the Dis trict’s portfo lio were $24,957 and fund s held in money market ac c ounts earned $1,602. R ec ommended by: John Mura G eneral Manager/C E O R es pectfully submitted: Brian Tomp kins C hief F inancial O fficer Inves tment manager fees p aid during the quarter were $2,178. Earnings were decreased b y a $2,106 amortization p aid on the acq uis itio n of certain bo nds . T here were no Dis trict trans fers to o r from this inves tment acco unt during the quarter. T he follo wing sched ule summarizes the ac tivity for Unres tric ted Inves tments d uring the Q uarter ended March 31, 2020: Restricted Investments Trus t acco unts with Union Bank are us ed to safeguard fund s which are restricted b y b ond c ovenants . T he ac co unts remaining open as of Marc h 31, 2020, are used to receive Dis trict depo s its, fro m which the Trustee (Union Bank) pays Dis tric t b ond holders . S emiannual bo nd payment dates are April 1st and O c to ber 1st. S ummary S c hedule of Union Bank Trus tee Ac c ounts T he follo wing sched ule summarizes activity in the Unio n Bank ac c ounts for the Q uarter ended Marc h 31, 2020: AG E N C Y G OALS AN D O B J E CT IVE S : G oal and O bjectives I I - Maintain a C o mmitment to S us tainab ility, Trans parenc y, and Ac c ountab ility a) P ractic e Trans parent and Acco untable F iscal Management R E VIE W B Y O T HE R S: T his agenda item has been reviewed b y the F inance Dep artment. F IS C AL IMPAC T T here is no fiscal imp ac t as so c iated with this agenda item. ATTACH M E N TS: Description Type Investment Rpt Qtr Ended Mar 31 2020 Backup Material Attachment A - CBB Investment Activity Rpt Qtr Ended Mar 3 1 2020 Backup Material EAST VALLEY WATER DISTRICT Investment Activity Quarter Ended March 31, 2020 Market Purch Units / Maturity Amort Cost Adjusted Cost Matured / Adjusted Cost Value Date Issuer CUSIP Yield Face Value Date 1/1/2020 Adjustment 1/1/2020 Purchases Called 3/31/2020 3/31/2020 Water Sewer 01/27/16 Federal Home Loan Bank 3130A6XY8 2.000% 01/27/21 100,000.00 100,000.00 100,000.00 - - - 10/12/16 Federal Home Loan Bank 3130A9GS4 1.700% 100,000 10/12/21 100,000.00 100,000.00 100,000.00 100,037.00 100,037.00 12/09/16 Federal Home Loan 313371U79 3.125% 200,000 12/11/20 202,788.62 202,788.62 202,788.62 203,870.00 203,870.00 08/03/16 Federal Home Loan 3130A8WW9 1.300% 100,000 05/01/20 100,000.00 100,000.00 100,000.00 100,076.00 100,076.00 05/31/18 FHLB 3130AEBM1 2.750% 100,000 05/10/21 99,892.00 99,892.00 99,892.00 105,140.00 105,140.00 05/31/17 US Treasury Note 912828XR6 1.750% 300,000 05/31/22 299,765.63 299,765.63 299,765.63 309,810.00 309,810.00 03/15/16 Fannie Mae 3136G3CK9 1.520% 06/15/20 299,745.00 299,745.00 299,745.00 - - - 07/28/16 Fannie Mae 3136G3J30 1.600% 100,000 07/28/21 100,000.00 100,000.00 100,000.00 100,078.00 100,078.00 08/04/16 Fannie Mae 3136G3XV2 1.100% 100,000 07/27/20 99,750.00 99,750.00 99,750.00 100,267.00 100,267.00 08/24/16 Fannie Mae 3135G0N66 1.400% 100,000 08/24/20 99,981.00 99,981.00 99,981.00 100,112.00 100,112.00 08/25/16 Fannie Mae 3136G3Y33 1.400% 300,000 08/25/21 300,000.00 300,000.00 300,000.00 303,336.00 303,336.00 08/25/16 Freddie Mac 3134G95L7 1.600% 200,000 08/25/21 200,000.00 200,000.00 200,000.00 200,334.00 200,334.00 09/30/16 Freddie Mac 3134GAHK3 1.600% 09/30/21 199,800.00 199,800.00 199,800.00 - - - 12/14/18 Federal Farm Credit Bank 3133EJ2R9 2.750% 100,000 12/14/20 99,862.00 99,862.00 99,862.00 101,747.00 101,747.00 12/16/19 Freddie Mac 3130ADMJ8 2.375% 100,000 08/26/22 100,830.00 100,830.00 112.92 100,717.08 101,793.00 101,793.00 10/30/19 Federal Home Loan Bank 3130AHGV9 1.800% 200,000 10/28/21 200,000.00 200,000.00 200,000.00 200,192.00 200,192.00 10/31/19 Federal Farm Credit Bank 3133EHMH3 2.000% 03/14/22 300,000.00 300,000.00 300,000.00 - - - 11/13/19 Federal Farm Credit Bank 3133EK5X0 1.680% 02/12/21 99,980.00 99,980.00 99,980.00 - - - 12/12/19 Freddie Mac 3134GT3N1 1.750% 100,000 08/29/22 99,901.00 99,901.00 99,901.00 100,268.00 100,268.00 11/26/19 Freddie Mac 3134GUUC2 1.750% 200,000 11/26/21 200,000.00 200,000.00 200,000.00 200,358.00 200,358.00 01/06/20 Federal Home Loan Bank 3130AEWA4 2.625% 150,000 10/01/20 - - 151,092.00 151,092.00 151,725.00 151,725.00 03/24/20 Federal Home Loan Bank 3130AJF53 1.375% 300,000 09/12/24 - - 299,850.00 299,850.00 300,213.00 300,213.00 01/30/20 Federal Farm Credit Bank 3133ELJT2 1.940% 100,000 04/23/24 - - 100,000.00 100,000.00 100,053.00 100,053.00 03/16/20 Federal Farm Credit Bank 3133ELSU9 1.250% 200,000 09/12/24 - - 199,850.00 199,850.00 200,058.00 200,058.00 01/21/20 Tenn Valley Authority 880591ER9 2.875% 200,000 09/15/24 - - 209,989.01 209,989.01 219,194.00 219,194.00 01/07/20 US Treasury Note 912828C57 2.250% 300,000 03/31/21 - - 301,980.78 301,980.78 306,351.00 306,351.00 12/09/16 Tenn Valley Authority 880591EL2 3.875% 111,000 02/15/21 112,085.36 (2,276.00) 109,809.36 (1,161.82) 110,971.18 114,045.84 114,045.84 11/04/16 US Treasury Note 912828T67 1.250% 500,000 10/31/21 499,765.63 499,765.63 499,765.63 508,360.00 508,360.00 06/14/16 Federal Home Loan Bank 3130A8EN9 1.640% 06/14/21 100,000.00 100,000.00 100,000.00 - - - 08/30/16 Fannie Mae 3136G35C5 1.400% 100,000 08/25/21 100,000.00 100,000.00 100,000.00 100,200.00 100,200.00 08/25/16 Freddie Mac 3134G93Q8 1.680% 200,000 08/25/21 200,000.00 200,000.00 200,000.00 200,350.00 200,350.00 01/02/18 US Treasury Note 912828N89 1.375% 500,000 01/31/21 494,793.77 494,793.77 (1,723.48) 496,517.25 505,470.00 505,470.00 01/10/20 Federal Home Loan Bank 3130AHUM3 225.000% 300,000 01/10/25 - - 300,000.00 300,000.00 300,516.00 300,516.00 01/21/20 Freddie Mac 3134GU4S6 1.800% 100,000 04/21/23 - - 100,000.00 100,000.00 100,367.00 100,367.00 5,361,000 4,808,940.01 (2,276.00) 4,806,664.01 1,662,761.79 1,096,752.62 5,372,673.18 5,434,320.84 3,605,012.00 1,829,308.84 Activity (Book Value) Attachment A B OAR D AG E N D A S TAF F R E P O RT Agenda Item #4. Meeting Date: April 22, 2020 Dis c ussion Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: Develo p ment Ac tivity Update R E COMME N D AT IO N: T his agend a item is pres ented fo r information only. B AC KG R O UN D / AN ALYS IS : T he Engineering Dep artment maintains a map o f development ac tivity within the Dis tric t’s service area (Exhibit 1 ). T he map s ho ws the name o f the d evelop ment, the typ e of land use (e.g., res id ential, c o mmerc ial, o r ind ustrial), numb er of units , and s tatus . S o me d evelo p ment projec ts that have sho wn rec ent ac tivity are s ummarized b elow. 1) Highland Hills R anch: T his res idential development o f 650 units east o f P lant 134 is exp ec ted to c o mmence c o nstructio n in one to two years. 2) Med iterra P has e 1 and 2: T his 200+ single family residential d evelo p ment acros s fro m the Dis trict’s head quarters is in final p lan c hec k and is exp ected to commenc e c o ns tructio n in one to two years . T here are 2 s eparate future phases whic h are s till c o nc ep tual. 3) S an Manuel Band o f Mis sion Indians : T he Tribe is expanding its c asino and build ing a 500+ room hotel and is adding/up s izing 2 miles o f s ewer pipeline o n S terling and Mars hall. T his project is in c o ns tructio n. 4) Neighborhood C reators: Two s ep arate 16-unit Multifamily c o mp lexes whic h are exp ected to b egin c o ns tructio n in the next 12 months. 5) Dairy Q ueen: T his is 2 p arc el commercial d evelopment for a new Dairy Q ueen and a mixed retail sho p ping c enter which is under c o nstructio n. 6) Lankers him Industrial LP : T his is a new 73k sf warehouse at 5th and Lankershim that is add ing about 250 lf o f s ewer main and is expec ted to begin c o ns tructio n this fall. 7) Q R Airport C ommerc e C enter P roperty: 406k s f light ind us trial warehous e that began c o ns tructio n March 2020 on 6th West of Lankers him. R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: Jeff No elte Direc tor of Engineering and O p erations 8) Tippec ano e Develo pment L L C : A 15.4-acre p arc el, jus t north o f Highland C reek on Tippec ano e Avenue, is p roposed to bec ome a trucking facility and parking lot. AGE N C Y GOALS AN D OB J E C T IVE S: G oal and O b jec tives I I I - Deliver P ub lic S ervice with P urpose W hile Embrac ing C o ntinuous G rowth b) S trive to P rovid e World C lass C us tomer R elations G oal and O b jec tives I V - P romo te P lanning, Maintenanc e and P res ervation of Distric t R es o urces b) Enhance P lanning Efforts that R espond to F uture Demands R E VIE W B Y O T HE R S : T his agend a item has been reviewed b y the exec utive management team. F IS CAL IMPAC T T here is no fis cal imp ac t as s oc iated with this agend a item. ATTAC H M E NTS: Description Type Develo pment Map Backup Material DIVERSIFIEDPACIFIC STONERIDGE STANSTRINGFELLOW HIGHLANDHILLS RANCH HIGHLANDHILLS RANCH HARMONY HARMONY HARMONY HARMONY HARMONY TREHPARTNERS GREENSPOTVILLAGE CRESTWOOD HISPANO CENTERSTONE MEDITERRA MEDITERRAMEDITERRA DIVERSIFIEDPACIFIC GLENROSERANCHMASTER HALCODISTRIBUTIONCENTER PALM AVENUEDEVELOPMENT KIEL MOTEL 6 JACK ANDPANDA KEMPER-HIGHLAND CAMILLEBAHRI MASTERCRAFT QR AIRPORTCOMMERCECTR DIVERSIFIEDPACIFIC MASTER CRAFTNEIGHBORHOODCREATORS DAIRY QUEEN TIPPECANOEDEV. LLC. LANKERSHIMINDUST. LP MOUNTAIN AVE CHIQUITA LN 21ST ST MOUNTAIN AVE CLUSTER AVE ALTODR SANTA ANA ST BASELINE ST LO MA AVE ALABAMA AVE BERNARD AVE 19TH ST WATERMAN AVE CLOVERHILL DR ELDER GULCH RD A .T.& S . F. RR VALARIA DR TEMPLE ST H A M P S HIR E R D WEAVER ST S.H. 210(30) FRWY SEELEY CT PIEDMONT DR CANYONOAK DR FOOTHILL DR H A R W I C K DR ELMWOOD RD LYNWOOD DR WINDSOR DR BUCKEYE ST ELM ST SEVILLE AVE CITRUS ST ARGYLE AVE 30TH ST DAVID WAY MILL CREEK RD WATERMAN AVE CENTRAL AVE GOLDEN AVE MEINES ST MILL CREEK RD A L D E R C R E E K R D GARNET ST MEINESCT FAIRFAX LN 36TH ST 29TH ST APLIN ST A ST FOXTAIL WY THIRD ST ORCHARD RD ALEXANDER AVE WEBSTER ST S.B.C.F.C.D.E. STDR S . B . C . F . C . D . S T D R LE M ON S T AT & SF RR MOUNTAIN AVE PALM AVE 3RD ST DUMBARTON AVE TEXAS ST WATERMAN AVE TIPPECANOE AVE HARRISON ST 3 RD ST TENNISCOURT LN GRIFFITH AV WARD WAY QUAIL CT 29TH ST ALLEY ALY P. E . R R N O Y E S LN NA P L E S DR G A RD E N D R STO NEY CREEK CT SEAVEY CT TIARACT LAKE RIDGE LA RED TAIL CT MERRIDY AV INDIAN CANYON CT MARSHALL BLVD LILLIAN LN G L E N R O C K P L CLEARSPRING LN F O X B O R O L N PEPPER TREE LN TIOGA LANE SEQUOIA LANE ANSELLANE ERWIN AVE S TONE Y CR E E K D R MORSE ST BECKETT CT COLE AVE NEWPORT AVE C H A N T I C L E E R R D PARKDALE DR L E E D O M D R V IL L A G E L A K E S R D OAK CT CRISTINA VILLA CT WATERMAN AVE O A K C R E E K L N LA PRAIX ST C O U N T R Y O A K S D R KENWOO D AVE L A K E V I E W D R STOCKTON ST E A S T O N L N ANSON ST G R O VE A V E SUNNYSIDE AVE GILBERT ST 14TH ST UNNAMED RD PLUMMERS LN EMERALD AVE DEL ROSA DR 27TH ST ORANGE ST S A N T A A N A RI V VISTA ALEGRE RD CON EJO DR HILLTOP DR LOSFLORES DR 35 T H S T CLOVERHILL DR LYNWOOD DR COLE AVE DRUMMOND AVE B E LL A TE R R A A V E MIDHURST DR LINDA AVE FISHER ST ALLEY ALY CARRO AMANO LA MILL C R EEK RD 34TH ST ATLANTIC AVE BESSANTST R AIN B O W L N FORTIETHST BRISTOL ST VISTA RIO RD BLUE CREEK LA ECHO DR PALM VIEW LN MAYWOOD AVE SEINE AVE GOLDEN AVE 17TH ST ORANGE ST FRONTERA DEL NORTE RD MICHELLE LN W A R M C R K WO RLEY CT DEL ROSA AVE 1 9 T H S T 27TH ST PUMALO ST BONITAVISTA DR LOLA ST MIRA VIS KING ST ZANJA RD ED W ARD VIEW DR ALLEY ALY CHURCH ST G O L D B U C K L E R D NORTH FORK RD NEWPORT AVE BASELINE ST DUNKIRK AVE D E SIR E W A Y VALENCIA AVE ELMWOOD RD ANDREASAVE PARKCRESTLA PEPPER ST CONEJO DR C L E A R S P RIN G L A GALA ST PEPPER TREE LN P. E . R . R . ( V A C ) 17TH ST CRAM RD STANTON AVE RODDICK DR CRESTVIEW LN SOUTHWOOD LA CRESTVIEW AVE W A R M C R K NYE DR MA R RIPOSA DR FRY E LN SAPPHIRE ST C A S A L O M A D R S H A D O W C R E E K L A 21ST ST CLIFTON ST BONITA DR SANTA ANGELA ST 10TH ST LA M O NIC A ST LA NITA ST VICTORIA AVE GOLDEN AVE LA PRAIX ST PEPPER TREE LN B A C O N L N ALA M E DA AVE DAVIS LN S.B.C.F.C.D. C H A N N E L C H CLEAR VIE W LA STAR PINE CIR COLE AVE GENEVIEVE ST M A R C U S L N 28TH ST MOUNTAIN AVE PEPPER ST ALLEY ALY BASELINE ST HOLLYCIRCLE DR T O W N C R K 11TH ST B O N I T A C T S U M M E R T R A IL P L QUAILRD M O U N T A I N T O P D R Q L IA I L C A N Y O N D R B U C K E Y E S T R E G A L O A K S R D P O P P E T T D R WINTERWOOD LA EMS AVE WARD ST VALENCIA AVE 20TH ST H O R N E R L N AMBERHILL DR FREMO NTIA DR VIA OBRA CT PALOMA RD SPRING MEADOW LN BEATTIE ST ROCKSPRING LA WALKER ST EUCALYPTUS DR LAKE VIEW LN WARM CRK GLASGOW AVE NILES ST TONNER DR UNNAMED RD ALLEN ST DOUBLE "A" LA VERDEDR WILMONT LN VAN LEUVEN LN CAMELLA DR PACIFIC ST S A N T A A N A RIV HIGHLAND AVE B A R N A R D L N 0.00 LILLIAN LN COCHRANE ST PINON CT AMETHYST ST LA HACIENDA DR BRADFORD AVE ALLEYALY CLIFTONST 6TH ST HENSLEE DR SYCAMORE DR RANDALL LN PERRIS HILL PARK RD WILLOWWOOD LA BALDRIDGE CANYON DR CHURCH AVE S M A L L C A N Y O N D R PIEDMONT DR KENT ST CIENEGA DR CAMELLA DR PRESTON ST M E R I T O A V E PIEDMONT DR T O W NC R K D O VER CT VICTORIA (VAC) AVE TERRACE DR MOCKINGBIRDLN N E W P O R T A V E 19TH ST COLE AVE EPPPER TREE LN C ALLE DEL RIO S T S H A Y C T BONITA DR TIPPECANOE AVE MENTONE AVE JONQUILST VALARIA DR EMM ERTON LN SANTA FE DR FAIRMOUNT DR SILVER BUC K L E RD R E D H I L L R O A D PARK AVE LN 8TH ST GOLONDRINA DR HOMESTEAD LA 39T H ST VALLEY VIEW AVE AMETHYST ST LUGO AVE ALLEN ST A LT O D R 4 TH ST G R E E N B R I E R P L ALLEY ALY AUTUMN GLEN RD GOLDEN AVE RIVER RUN LA TR ENTON ST 20TH ST LA PRAIX AVE WHITEGATE LN Z A N J A D R STRATHMORE RD SAND CANYO N CH PATTEE CT ALAMEDA AVE S A N T A A N A C A N Y O N R D RIALTO AVE MCKINLEY AVE ORAL AVENUE EXT TOPAZ ST EVANS LNBESSANT ST SUNNYRIDGELOOP S.B.C.F.C.D. CH H E N D E R S O N L N B O N V I E W D R 39TH ST W H I T E O A K L A S B I A R N W Y VICTORIA AVE CRIMSON DR ALLEY ALY NORWOOD ST M I R A D A S T SAN GABRIEL ST TEMPLE ST EVANSLN OSBUN RD OSBUN RD NEWPORT AVE 20THST DATE ST E R I C K S O N C T DE L R E Y DR TU OLUMNE LANE ROXBURY DR VILLA AVE ROGERS LN VALENCIA AVE M E R I T O P L SEINE AVE EUCALYPTUS DR ARDEN AVE C E N T R O V IS T A R D 6TH ST MT.VIEW AVE TWENTY EIGHTH ST DEL ROSA AVE BRADFORD AVE 28 TH ST NORWOOD ST 9TH ST AVALON AVE C A S A L O M A A V E HOLLY VISTA BLVD ALLEY ALY 38TH ST ECHO DR 36TH ST GUTHRIE ST 28TH ST P I N O P L PLUTO ST CYPRESS ST S T A T E H I G H W A Y 3 8 H W Y LILLIAN LN BROOKWOOD LA BONITA DR DENAIR AVE 6 TH ST 7TH ST F R E M O N T I A D R NICE AVE ALTA VISTA RD POMONA ST E LM W OOD RD OLEANDER DR LANE RD VINE ST C A MIN O CIEL O ST MIRADA ST ALAMEDA ST 6 TH ST SANTA ANA CANYON RD GOLDEN AVE 18TH ST RALSTON ST AMANDA ST 35TH ST 26TH ST BYRON ST BERNARD WAY SIERRA WAY SEPULVEDA AVE GUTHRIE ST ALLEY ALY MOUNTAIN VIEW AVE ALLEY ALY Y U M A D R FAIRFAX LN 11TH ST OLIVE RD BASELINE ST RHONE AVE 10TH ST MICHIG AN AVE RAILTO AVE APPLEWOOD ST LEROY ST CARDIFF (VAC) AVE W A B A S H S T BONNIECT GOLDEN AVE 38TH ST GOLONDRINA DR CARLSBAD AVE ELM AVE GOLONDRINA DR NEWBURY AVE BONNIE ST 40TH ST RIALTO AVE IRWIN ST 37TH ST MILLAR ST BASELINE ST BROO KSIDE ST 28TH ST 29TH ST GOLONDRINA AVE ALTO CT DOG WOOD ST COLWYN AVE GILBERT ST OLIVE ST STANTON AVE CENTRAL AVE BLYTHE ST ARGYLE AVE McKINLEY AVE P.E. RR RED CLOVER WY 28TH ST BONNIE ST SEPULVEDA AVE CYPRESS ST VILLA AVE GARDEN LN ALLEY DOG WOOD ST S U R R E Y LN B R I G H T S P O T R D WABASH AVE E L M C T JULIAN DR CANYON RD FISHER ST CEDAR ST JANE ST U N N A M E D R D S A N T A A N A C A N Y O N R D4 TH ST WALL ST BELLE ST WALL AVE S E S S U M S D R WARD ST ALOE CT C I E N E G A D R M I L L C R E E K R D PARK AVE STONEY CR EEK DR 36TH ST BASELINE ST WATERMAN AVE 9TH ST DATE PL J U L I A N D R 5 TH ST WATERMAN AVE RANKINS LN 34TH ST ARGYLE AVE HIGHLAND AVES.B.C.F.C.D. STDR ALLEY ALY 5 TH ST PINE (VAC) AVE WATERMAN AVE STERLING AVE S E R E N A S T REEDY AVE CONEJO DR 34TH ST CLIFTON AVE DOOLITTLE DR WINDSOR DR FAIRFAX DR PACIFIC ST MIRADAST ABBEY WY WATERMAN AVE MARSHALL CT N E W P O R T A V E S.H.210 FRWY CITRUS ST ROCKFORD AVE DUMB ARTON AVE 27TH ST BONNIE ST TOLUCA DR G AT E WO O D WAY BONNIE ST 34TH ST FERNDALE AVE 26TH ST GOLDEN AVE ELM AVE CORNUS CT POLO ST B A C O N L NLYNWOOD WAY T E M P L E S T BOYD ST SAN FRANCISCO ST M E R I T O A V E LOCUSTCT SAN FRANCISCO ST VALARIA ST EVANS ST S L I G E R R D CREST ST BRUCE ST RHONE CT PASITO ST SANTA ANA RIVER RVR SHASTADR 17TH ST I R O N W O O D S TELMWOOD RD TIARA AVE ROGERS ST BLYTHE ST TIPPECANOE ST SAPPHIRE ST PERSHING ST FISHER CT HARRISON ST CITY CRK 37TH ST ALICE ST BYRON ST REEDY AVE 17TH ST DWIGHT WAY CANYON SPRINGS RS NONA AVE CONEJO DR 33 RD ST CITY CREEK 330 RD PARKSIDE DR PRIVATE DR STRATFORD ST FLETCHER VIEW DR 26 TH ST 9TH ST BYRON ST WATERMAN AVE GARNET AVE NYE DR COLE AVE UNION ST FISHER ST S A N T A P A U L A S T ROXBURY DR SUNSET LA CONEJO DR COLE AVE PASITO ST QUAIL RUN DR C A R RIA G E HILL D R SAN BERNARDINOAVE OAKHURST DR 23 RD ST BYRON ST 18TH ST CASE AVE NEWCOMB ST HUDSON AVE GUTHRIE ST A S P E N D R COLE AVE 30TH ST SLIGER RD 21ST ST 28 TH ST BELLE ST EUCALYPTUS DR BUCHANAN AVE ARGYLE AVE GUTHRIE ST WATERMAN AVE CASE AVE GOODMAN CT HARRISON ST 20TH ST 39T H ST BIRCH ST BELLE ST 30th ST DEL ROSA AVE COLWYN AVE VAL MAR CIR RIALTO AVE MISSION ST SHAUNADR 30TH ST STRATFORD ST HAVASU CT PINON CT FOURTH ST HOLLY VISTA BLVD ORCHID DR CHURCH AVE LUGO AVE COOLEY ST STATE HIGHWAY 30 HWY OLETA LN P A CIFIC E LE C T RIC R R PEACOCK AVE UNNAMED RD HIGHLAND AVE 10TH ST CACTUSCT CUNNINGHAM ST HILLVIE W S T MT. VIEW AVE NORTH ST MARILYN AVE WALL AVE D O R T H Y S T 13TH ST DONNA DR DELNORTE DR 3 3 R D S T FREMO NTIA DR WABASH AVE UNION ST AMANDA ST O P A L A V E MARILYN AVE COLE CT VALARIA DR DATE ST LAWRENCE AVE ALLEY RD 15TH ST MICHAEL DR MILL ST ORANGE KNOLL AVE LUGO AVE WALL ST P R A D E R A A V E VALLEY ST N E W B U R Y A V E AMBER ST KENWOOD AVE ORANGEWOOD RD LILLIAN LN OLIVE ST LESLIE ST ROCA CIR MIRA VISTA AVE 39TH ST 26TH ST 25TH ST D O R O T H Y S T ECHO CT 28TH ST PALM DR ALLEY NEWPORT AVE FOSTER AVE CITRUS AVE 39TH ST HALL WAY DEL ROSA DR ELMO DR E D G E M O N T D R ORCHID DR LITTLE ST BASELINE ST CORWIN CT FLORIDA ST ALTO CT M C K I N L E Y S T ALLEY YUC CA DR BURNS LN EL CAMINO DR 29THST YATES AVE ELM AVE CABO DELOESTE RD MONTROSE DR STILES ST S T R E A T E R D R 33RD ST OSBUN RD LOVE ST LOSFLORES DR NEWPORT ST ELM WOOD RD ALLEY ALY VALENCIA AVE M I L L C R E E K R D LA CRESTA ST MOUNTAIN LAUREL DR LOS FLORES DR TOLUCA DR UNION ST HIDALGO DR SEPULVEDA AVE PERSHING AVE ENTERPRISE DR HIBISCUS ST FLEMING ST 18TH ST VANDA LN HILLVIEW ST BASELINE ST VALMONT AVE SHIRLEY AVE OLD BRIDGE RD TAYLOR RD MERITO AVE MANSFIELD ST 9TH ST SANTA ANACANYON RD MILL C R E E K R D EDGEMONT DR SANTA FE ST SAN JACINTO ST BRADFORD AVE DRUMMOND AVE SHIRLEY AVE ORANGE ST HIGHLAND AVE MOUNTAIN VIEW (VAC) AVE WALL AVE ALLEY ALY ORANGE KNOLL AVE B A N G O R A V E KANECT FLORIDA AVE CONEJO DR CHURCH ST UNNAMED RD CREST ST NORWOOD ST KINGMAN ST COURT ST PACIFIC ST BRYANT ST 2 ND ST GOLDEN AVE RALSTONAVE LENA RD SAN GABRIEL ST FOSTER AVE BELLE ST WALL ST S T A T E H W Y 33RD ST GOLONDRINA DR MESA CT PACIFIC ST CEDAR ST COUNTRYCLUB LN GOLDEN AVE BELLE ST LEROY ST MC KINLEY ST 16TH ST ALLEY ALY PALM AVE VINE ST BROADMOOR BLVD LOS FELIZ DR CLUB VIEW DR MILL (VAC.) ST COURT ST LITTLE 3rd ST CYPRESS ST GARNET ST THIRD ST ZANJAVIEW DR PACIFIC ST MILLAR ST PEPPER DR NONAAVE BASELINE ST DILLON ALY HIDALGO DR PARKSIDE DR 20TH ST RAINBOW LN BLYTHE AVE CASA LOMA AVE TOLUCADR BONITA VISTA DR STRATFORD ST 1 ST ST SUNRISE LN MONTROSE AVE MADEIRA AVE SONORA ST OLIVE ST MT. VIEW AVE MOUNTAIN VIEW AVE ORANGE KNOLL AVE LUGO AVE P OWELL DR SIXTH ST VICTORIA ST 7TH ST VINE ST PERSHING AVE NINTH ST VALARIA DR 3 RD ST FIFTH ST COURT ST ORANGE ST OLIVE ST OLIVE TREE LN 18TH ST 17TH ST 25TH ST 26TH ST ROBERTS ST COLE AVE YARNELL RD HOLLY VISTA BLVD MOUNTAIN AVE 29TH ST H A C KNEY S T NONA AVE DAVID WAY PIEDMONT DR ROCKFORD AVE MESSINA ST ARROWHEAD AVE CAMELLIA DR REEDY AVE PALOMAR AVE GREENSPOT RD ORANGE ST ECHO DR WATERMAN AVE DUMB ARTON AVE 7TH ST SAN FRANCISCO ST NORBERT DR PACIFIC ST 13TH ST CORTEZ ST ORANGE ST CITRUSST OSBUN RD IRONWOOD ST 37TH STPARKDALE DR AVERY ST MILL ST HIGHLAND AVE RIALTO AVE 7TH ST DUNDEE AVE DEL ROSA DR ATLANTIC AVE M ANZA NITA D R MERITO AVE 6 TH ST UNNAMED RD TEMPLE ST UNNAMED RD CA N T E B U R Y WAY ALLEY CHURCH ST P.E. RR BANGOR AVE MENTONE AVE HOLLY VISTA BLVD GLENDENNING WAY JULIA ST GUTHRIE ST 9TH ST CENTRAL AVE SEINE AVE STERLING AVE ORCHID DR ROBINSON RD 13TH ST MARIGOLD AV ALLEY ALY 37TH ST S B I A S T VAL MAR RD LYNWOOD WAY GEORGE WEBSTER DR ALLEY ALLEY ALLEY ALY WALKER ST LIVE OAK RD AUTUMN CHASE RD DEL REY DR BELVAN AVE BOBBETT DR MOUNTAIN AVE BELVEDERE AVE ELM AVE OSBUN RD ALLEY ALLEY MOUNTAIN AVE VALENCIA AVE BARTON ST MARSHALL BLVD BOBBETT DR WATERMAN AVE CONEJO DR 18TH ST NEWBURY AVE BONNIE ST GOLONDRINA DR 21 ST ST R O C K FO RD AV E 6 TH ST MYRTLE DR WARD ST SBCFCD STDR BANGOR AVE ARROWHEAD COUNTRY CL WAY DAVID WAY FISHER ST 7TH ST WATER ST HARRY SHEPARD BLVD FAIRFAX DR OAK RIDGE RDMILLER LN 14TH ST BASELINE BADEN AVE 36TH ST C ALLE C A R RIS A ST PUMALO ST PALM LN HI G H L A N D AV E 35TH ST MODESTO DR IDA AVE NEWCOMB ST TIPPECANOE AVE 5TH ST ALLEY 19TH ST 18TH ST ORC H ID DR HIBISCUS ST MARSHALL BLVD 9TH ST DOGWOOD ST IRONWOOD ST CHIQUITA LN ALLEY HIG H L A N D L A 19TH ST 20TH ST SEVENTH ST VINE ST LANKERSHIM AVE 3RD ST CENTRAL AVE MANSFIELD ST MILL ST 14TH ST O L D G R E E N S P O T RD BASELINE ST MESQUITE DR BROADWAY ST EDGEMONT DR GARNET ST 11TH ST EUCALYPTUS DR GARDEN DR VINE ST ELMWOOD RD 7TH ST E U R E K A S T GRAPE ST PUMALO ST 5TH ST MAIN ST FLORIDA ST BOULDER (IMP) AVE BOULDER (IMPR) AVE LOS FELIX DR HIGHLAND AVE ARDEN AVE A . T & S . F R R UNION ST PALMVIEW LN PEDLEY RD L A H A CIE N D A A V E 34TH ST ELMWOOD RD PALM AVE LAWRENCE AVE BASELINE ST FRONTERA DEL SUR RD VILLA AVE MESA VERDE AVE NORTH FORK RD 17TH ST S A N B E NIT O S T ELMWOOD AVE ARROYO VISTA DRHIGHLAND AVE SYCAMORE DR T I P P E C A N O E S T DALEY CANYON RD MCLEAN ST GLENHEATHER DR BOULDER AVE CLOVERHILL DR LYNWOOD WAY STERLING AVE BASELINE ST CEDAR ST 4 TH ST MOUNTIAN AVE O R A L A V E N U E E X T F O O T HILL D R STERLING AVE MIRADA RD L Y N W O O D C I R 7 TH ST WHITLOCK AVE STERLING AVE ELM ST PEDLEY RD RD WILLOW DR M O N T E V I S T A D R MERRIS ST MONTEREY AVE B O U L D E R ( S T A T E H W Y ) A V E MILL ST S .B .C .F.C .D .E S T D R 2 ND ST HIGHLAND AVE BROWNING RD EUCALYPTUS AV UNNAMED RD UNNAMED RD UNNAMED RD FAIRFAX DR S.B.C.F.C.D.E. STDR TIPPECANOE ST BARTON ST PERRIS HILL RD 3RD ST O P A L A V E N U E E X T HEMLOCK DR B O U L D E R ( S T A T E H W Y ) A V E (OLD) GREENSPOT RD C I T Y C R K GRE E N SPOT (FIFTH) RD CONE CA MP RD ALABAMA ST DEVELOPMENT NEIGHBORHOOD CREATORS TIPPECANOE DEV. CO DAIRY QUEEN MEDITERRA PH. 1 & 2 SAN MANUEL CASINO/HOTEL EXPANSION MEDITERRA PH. 1 & 2 LANKERSHIM INDUST. LP QR AIRPORT COMMERCE CTR. HIGHLAND HILLS RANCH EXHIBIT 1: DEVELOPMENT IN EVWD SERVICE AREA B OAR D AG E N D A S TAF F R E P O RT Agenda Item #5. Meeting Date: April 22, 2020 Dis c ussion Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: R eview Agreement and Approve R es o lutions 2020.08, 2020.09, and 2020.10 to F ac ilitate Es tab lis hment of C F D No. 2020-01 for Highland Hills R E COMME N D AT IO N: S taff recommends that the Board of Direc tors (Board ) adopt R es o lutions 2020.08, 2020.09, and 2020.10 to facilitate the es tab lis hment of C ommunity F acilities Dis trict No. 2020-1 (Highland Hills). B AC KG R O UN D / AN ALYS IS : At the January 8, 2020 Bo ard meeting, the Bo ard heard a presentation o n, and then ad o p ted, G oals and P o lic ies for C o mmunity F ac ilities Dis tric ts . T he Bo ard als o acc ep ted a p etition from F irs t American Title Ins uranc e C ompany, the O wner of the p ro p erty known as the Highland Hills p rojec t, to fo rm a C o mmunity F ac ilities District (C F D) for that p rojec t, and authorized the G eneral Manager/C EO to req uire a depo s it fro m the O wner to pay Dis tric t c o s ts to estab lis h a C F D. T hes e were the firs t two ac tions rec o mmend ed b y C yrus Torab i fro m S trad ling, Yo cc a, C arls o n, & R auth in his pres entatio n o n ‘Introduc tion to C o mmunity F ac ilities Dis tric ts ’ S ince the January 8th meeting, s taff and Dis tric t c ons ultants, and the O wner and their c o nsultants have been wo rking to gether to p rep are d o c uments for the next set of required Board ac tio ns, which are pres ented in this agenda item for Bo ard cons id eratio n. T he fo llo wing three R esolutio ns are attac hed: Resolution 2020.08 – A R es o lutio n of EVW D app ro ving exec utio n o f a R eimb urs ement Agreement R elated to the Highland Hills C F D: 1. R eimb urs ement Agreement - S p ec ifies a $75,000 d eposit the O wner mus t give to the Dis tric t to pay fo r c osts as s o ciated with es tablishment of a C F D, whic h depo s it has been p rovid ed to the District, and how the O wner may be reimburs ed fo r thos e and o ther C F D c osts if and when C F D Bond s are is s ued. Resolution 2020.09 – A R es olutio n of E VW D dec laring its intention to es tab lis h C F D 2020-1 and Imp ro vement Areas 1, 2, and 3 therein, to autho rize a spec ial tax levy to pay for F acilities , I ncidental Expenses, and P rinc ip al and Interes t o n Bo nds . T his R es o lution es tablishes : the name o f the C F D, the types of fac ilities that c an be b uilt, s pecial tax rates and the method for alloc ating taxes to prop erties within the C F D, R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: Brian Tomp kins C hief F inancial O fficer s pecial tax rates and the method for alloc ating taxes to prop erties within the C F D, the time and plac e fo r a pub lic hearing and no ticing requirements for the p ublic hearing, whic h is req uired befo re the C F D c an b e fo rmally estab lis hed , and whic h is anticipated to b e s ched uled for June 10, 2020, and a financ ing team for is s uing C F D debt. Resolution 2020.10 – A R es o lution o f EVW D to incur Bo nded Ind ebted nes s within C F D No . 2020-1, and Imp ro vement Areas 1, 2, and 3 therein. T his R esolutio n es tablis hes the not to exceed amo unt fo r a C F D bond is sue at $24 million and es tablis hes the p urpo s e for whic h bond s may b e is s ued, and the term for whic h they may b e is s ued . All o f thes e R es olutions d ec lare the Board’s intentio n to take c ertain ac tions to fac ilitate the C F D, b ut d o not c o mmit any financ ial resourc es to the C F D – the Highland Hills C F D is intended , both now and in the future, to b e cost neutral to the Dis tric t. O ngoing ad minis tration, inc lud ing staff time and work p erfo rmed b y a S pecial Tax C ons ultant, will b e paid for o ut o f annual tax levies on the properties within the C F D. S taff antic ip ates that the next request fo r Bo ard ac tion will b e at a P ublic Hearing during the June 10, 2020 R egular Bo ard Meeting to consider adoptio n of a R es o lution of F ormation for C F D 2020-1. S taff rec ommends ad o ptio n o f R es o lutions 2020.08, 2020.09, and 2020.10. AGE N C Y GOALS AN D OB J E C T IVE S: G oal and O b jec tives I V - P romo te P lanning, Maintenanc e and P res ervation of Distric t R es o urces b) Enhance P lanning Efforts that R espond to F uture Demands F IS CAL IMPAC T T his agend a item has been reviewed b y legal c o unsel. ATTAC H M E NTS: Description Type P resentation P resentation Resolution 202 0.08 Resolution Lette r Reimbursement Agreement Backup Material Resolution 202 0.09 Resolution Lette r Resolution 202 0.10 Resolution Lette r April 22, 2020 FORMATION OF EVWD COMMUNITY FACILITIES DISTRICT (CFD) NO. 2020-1 HIGHLAND HILLS SEQUENCE OF EVENTS 2 1.Property Owner Petitions to Form Community Facilities District (CFD); •Board Has 45 Days to Estimate Costs Needed to Form CFD and Demand Deposit of Funds from Petitioner (Governed by Deposit and Reimbursement Agreement) 2.EVWD Adopts Local Goals and Policies 3.EVWD Board Commences CFD Proceedings •Resolution to Approve Reimbursement Agreement •Resolution of Intent to Form CFD •Resolution of Intent to Issue CFD Debt 4.Public Hearing January 8 January 8 April 22 June 10 SEQUENCE OF EVENTS 3 6.Election to Form CFD, Authorize Special Tax Levy and Authorize Bond Issuances 7.Record Rate and Method of Apportionment With County Recorder 8.Issue Bonds (Bond And Disclosure Counsel Needed to Prepare Bond Documents) 9.Special Taxes Levied to Pay Debt Service on Bonds 10.Project Costs Funded or Reimbursed 11.EVWD Administers CFD until Bonds Mature June 10 June 11 AERIAL VIEW OF PROPOSED CFD 4 5 RECOMMENDATIONS •Adopt Resolution 2020.08 -Approve Reimbursement Agreement •Adopt Resolution 2020.09 -Intent to Establish CFD •Name of CFD •Types of Facilities that can be Funded •Special Tax Rates and Method for Allocating Taxes •Time and Place for Public Hearing •Financing Team for Issuing CFD Debt •Resolution 2020.10 -Intent to Issue Bonds East Valley Water District Resolution 2020.08 Page 1 of 2 RESOLUTION 2020.08 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT APPROVING THE EXECUTION AND DELIVERY OF A REIMBURSEMENT AGREEMENT RELATED TO THE HIGHLAND HILLS COMMUNITY FACILITIES DISTRICT FORMATION PROCEEDINGS WHEREAS, the East Valley Water District (the “District”), a county water district that is duly organized and existing under and by virtue of the laws of the State of California (the “State”), has received a request from First American Title Insurance Company (“First American”) to establish a community facilities district to aid in the development of the Highland Hills property; and WHEREAS, pursuant to the District’s Goals and Policies for Community Facilities Districts, which were adopted on January 8, 2020, petitioners must post a deposit of $75,000 in order for the District to consider the establishment of a community facilities district; and WHEREAS, First American has delivered a check to the District in the amount of $75,000 (the “Deposit”) in furtherance of First American’s request that the District establish a community facilities district; and WHEREAS, the District desires to enter into a Reimbursement Agreement re Formation of Proposed Community Facilities District No. 2020-1 (Highland Hills) of the East Valley Water District (the “Agreement”) with First American to govern the District’s application of the Deposit; and NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the District as follows: Section 1. Findings. The Board hereby specifically finds and declares that each of the statements, findings and determinations of the District set forth in the above recitals and in the preambles of the documents approved herein are true and correct. Section 2. Agreement. The Agreement in substantially the form attached hereto is hereby approved. The President or Vice President of the Board or the General Manager of the District or the designee thereof are authorized and directed to execute and deliver the Agreement with such changes, insertions and omissions as may be recommended by General Counsel or Stradling Yocca Carlson & Rauth, the District’s Bond Counsel, and approved by the person executing the same, said execution being conclusive evidence of such approval. Section 3. Other Actions. The President or Vice President of the Board or the General Manager or Chief Financial Officer of the District or the designee thereof and any other proper officers of the District, acting singly, are hereby authorized and directed to do any and all things and to execute and deliver any and all documents and certificates which such officers may deem necessary or advisable in order to effectuate the purposes of this Resolution (including without limitation, the execution of any amendments to or restatements of the Agreement in the future), and such actions previously taken by such officers are hereby ratified and confirmed. East Valley Water District Resolution 2020.08 Page 2 of 2 Section 4. Effect. This Resolution shall take effect immediately. This Resolution shall take effect as of the 22nd day of April 2020. ADOPTED this 22nd day of April 2020. ROLL CALL: Ayes: Noes: Absent: Abstain: David E. Smith, Board President April 22, 2020 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2020.08 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held April 22, 2020. ATTEST: _____________________________ John Mura, Board Secretary Stradling Yocca Carlson & Rauth Draft of 3/3/20 REIMBURSEMENT AGREEMENT RE FORMATION OF PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2020-1 (HIGHLAND HILLS) OF EAST VALLEY WATER DISTRICT THIS REIMBURSEMENT AGREEMENT RE FORMATION OF PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2020-1 (HIGHLAND HILLS) OF EAST VALLEY WATER DISTRICT (this “Agreement”) dated as of _____ __, 2020 is entered into by and between East Valley Water District, a county water district that is organized and existing under the laws and constitution of the State of California (the “District”), and FIRST AMERICAN TITLE INSURANCE COMPANY, a Nebraska corporation (the “Owner”). RECITALS A. The Owner is developing the Highland Hills project within the District and has requested that the District establish a community facilities district (the “CFD”) encompassing the Highland Hills project pursuant to the Mello-Roos Community Facilities Act of 1982 (Government Code Section 53311 et seq.) (the “Act”). B. The District and the Owner are desirous of entering into this Agreement in order to provide a mechanism by which the Owner may advance certain costs related to the costs of formation of the CFD, and to provide that the District will reimburse the Owner for the amounts advanced hereunder if and when the CFD is formed and bonds of the CFD (the “Bonds”) are issued. AGREEMENT 1. Recitals. Each of the above recitals is incorporated herein and is true and correct. 2. Formation of CFD. (a) In order to begin the process of analyzing the formation of the CFD by the District, the Owner shall advance to the District a sum totaling $75,000 to pay the District’s costs incurred related to the formation of the CFD. The Owner shall have the right to notify the District at any time, in writing, of its intention to abandon the formation of the CFD. Upon receipt of such notice, the District shall instruct its consultants to cease work as soon as practicable. The Owner shall be responsible to pay all costs and expenses incurred by the District or any District consultant or advisor prior to the date on which the District’s consultants are notified of the Owner’s notice of abandonment. (b) The District will provide to the Owner on request a summary of how the advances have been spent and the unexpended balance remaining. The amounts advanced by the Owner will be reimbursable to the Owner, without interest, from the proceeds of Bonds issued by the District when and if the Bonds are issued. In the event that Bonds are not issued to provide a source of reimbursement to the Owner, the District shall have no liability to the Owner to reimburse the Owner for any amounts which were previously advanced by the Owner and expended by the District in accordance with this Agreement. (c) In the event that the parties are continuing to work toward the formation of the CFD and the amount on deposit with the District falls below $5,000, the District shall request, and the Owner shall advance to the District within ten (10) business days of such request, an amount equal to 2 the District’s reasonable estimate of the remaining CFD formation costs that it will incur less the amount then on deposit with the District. 3. Reimbursement Procedure. If the CFD is formed, and following the sale of Bonds, the District shall reimburse the Owner the money advanced by the Owner to the District pursuant to Section 2 above within 30 days of receiving Bond proceeds. If the CFD is not formed, the District shall return any funds that have been advanced by the Owner and which are not expended for the purposes set forth in Section 2 above upon the completion or abandonment of the CFD formation. Such returned funds shall be without interest. 4. Notices. Any notice to be provided pursuant to this Agreement shall be delivered to the following addresses: Owner: First American Title Insurance Company One First American Way Santa Ana, CA 92707 Attention: Joseph S. Tavarez, Senior Vice President District: East Valley Water District 31111 Greenspot Road Highland, CA 92346 Attention: General Manager With a copy to: Stradling Yocca Carlson & Rauth 660 Newport Center Drive, Suite 1600 Newport Beach, CA 92660 Attention: Cyrus Torabi, Esq. Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party. 5. Assignment. The Owner may not assign its interest in this Agreement to another party (the “New Owner”) without the prior written consent of the District, which shall not be unreasonably withheld or conditioned. In the event that the Owner has not been reimbursed under the terms of this Agreement prior to an assignment of this Agreement to a New Owner, if and when Bonds are sold, the District shall reimburse money advanced by the Owner to the Owner and shall reimburse money advanced by the New Owner, if any, to the New Owner. 6. Severability. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent permitted by law. 7. Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the matters provided for herein. 8. Amendments. This Agreement may be amended or modified only by written instrument signed by all parties. 9. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original. 3 10. Governing Law. This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California. 11. No Third Party Beneficiaries. No person or entity shall be deemed to be a third party beneficiary hereof, and nothing in this Agreement (either express or implied) is intended to confer upon any person or entity, other than the District and the Owner, any rights, remedies, obligations or liabilities under or by reason of this Agreement. 12. Singular and Plural; Gender. As used herein, the singular of any word includes the plural, and terms in the masculine gender shall include the feminine. [Signature Page Follows] S-1 IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written. EAST VALLEY WATER DISTRICT By: General Manager Date: FIRST AMERICAN TITLE INSURANCE COMPANY, a Nebraska corporation By: Name: Title: East Valley Water District Resolution 2020.09 Page 1 of 60 RESOLUTION 2020.09 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2020-1 (HIGHLAND HILLS) OF EAST VALLEY WATER DISTRICT, AND IMPROVEMENT AREA NOS. 1, 2 AND 3 THEREIN, TO AUTHORIZE THE LEVY OF A SPECIAL TAX TO PAY THE COST OF ACQUIRING OR CONSTRUCTING CERTAIN PUBLIC FACILITIES, AND PAYING FOR CERTAIN INCIDENTAL EXPENSES AND TO PAY DEBT SERVICE ON BONDED INDEBTEDNESS PROCEEDINGS WHEREAS, the East Valley Water District (the “District”), a county water district that is duly organized and existing under and by virtue of the laws of the State of California (the “State”), has received a petition from First American Title Insurance Comp any (“First American”), the owner of the territory that is described in Exhibit A (the “Property”), to establish Community Facilities District No. 2020-1 (Highland Hills) of East Valley Water District (the “Community Facilities District”) and Improvement Area Nos. 1, 2 and 3 therein (each, an “Improvement Area” and collectively, the “Improvement Areas”), to finance: (1) the purchase, construction, expansion, improvement or rehabilitation of the public facilities described in Exhibit B (which attachment is incorporated herein by this reference), including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”), which Facilities have a useful life of five years or longer; and (2) the incidental expenses to be incurred in connection with financing the Facilities, forming the Community Facilities District and the Improvement Areas therein and administering the Community Facilities District (the “Incidental Expenses”); WHEREAS, the Board of Directors of the District (the “Board”), acting as the legislative body of the Community Facilities District, further intends to approve an estimate of the costs of the Facilities and the Incidental Expenses for the Community Facilities District and each Improvement Area therein; and WHEREAS, it is the intention of the Board to consider financing the Facilities and the Incidental Expenses through the formation of the Community Facilities District and each Improvement Area therein, and the sale of bonds in an amount not to exceed $24,000,000 for the Community Facilities District, including $12,000,000 for Improvement Area No. 1, $5,000,000 for Improvement Area No. 2 and $7,000,000 for Improvement Area No. 3 (collectively, the “Obligations”), and the levy of a special tax in the applicable Improvement Area to pay directly for the Facilities and to pay debt service on the Obligations, provided that the bond sale and special tax levy are approved at elections to be held for the Improvement Areas; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the District as follows: Section 1. Findings. The Board hereby specifically finds and declares that each of the statements, findings and determinations of the District set forth in the above recitals and in the preambles of the documents approved herein are true and correct. East Valley Water District Resolution 2020.09 Page 2 of 60 Section 2. Intention. The Board declares its intention to conduct proceedings pursuant to the Mello-Roos Community Facilities Act of 1982 (California Government Code Section 53111 et seq., the “Act”) for the establishment of the Community Facilities District and each Improvement Area therein with boundaries coterminous with the Property. It is further proposed that the boundaries of the Community Facilities District and each Improvement Area shall be the legal boundaries as described in Exhibit A, which boundaries shall, upon recordation of the boundary map for the Community Facilities District, include the entirety of any parcel subject to taxation by Community Facilities District, except where indicated on the boundary map, and as depicted on the boundary map of the Community Facilities District which is on file with the Secretary of the District. The Secretary of the District is hereby directed to sign the original boundary map of the Community Facilities District and record it with all proper endorsements thereon with the County Recorder of the County of San Bernardino within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California. Section 3. Name of the Community Facilities District. The name of the proposed Community Facilities District is “Community Facilities District No. 2020-1 (Highland Hills) of East Valley Water District.” Section 4. Types of Facilities to be Financed by the Community Facilities District. The Facilities that are proposed to be provided within the Community Facilities District and each Improvement Area therein are public facilities as defined in the Act. The Board hereby finds and determines that the description of the Facilities and Incidental Expenses herein is sufficiently informative to allow taxpayers within the Community Facilities District and each Improvement Area therein to understand what the funds of the Community Facilities District and each Improvement Area therein may be used to finance, the Facilities to be constructed or acquired and the Incidental Expenses expected to be incurred, including the cost of planning and designing the Facilities, the costs of forming the Community Facilities District and each Improvement Area therein, issuing bonds, levying and collecting a special tax within the Community Facilities District and each Improvement Area therein and the annual administration costs of the Community Facilities District. The Board hereby finds that the proposed Facilities are necessary to meet increased demands placed upon the District as a result of development occurring in the Community Facilities District. The Facilities may be acquired from one or more of the property owners as completed public facilities or may be constructed by or on behalf of the District and paid for with bond proceeds and the proceeds of special taxes collected by the Community Facilities District. Section 5. Special Taxes. Except where funds are otherwise available, it is the intention of the Board to levy annually in accordance with the procedures contained in the Act a special tax within each Improvement Area secured by recordation of a continuing lien against all non-exempt real property in the Improvement Area in an amount that is sufficient to pay for the Facilities and Incidental Expenses and the principal and interest and other periodic costs on bonds or other indebtedness issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of any reserve funds deemed necessary by the District, and any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash) attributable to the Community Facilities District. The rate and method of apportionment of special taxes (each, a “Rate and Method”) and manner of East Valley Water District Resolution 2020.09 Page 3 of 60 collection of the special tax for each Improvement Area is described in detail in Exhibits C-1, C-2 and C-3, which attachments are incorporated herein by this reference. Exhibits C-1, C-2 and C-3 allow each landowner within the applicable Improvement Area to estimate the maximum amount that may be levied against each parcel. If special taxes of the Community Facilities District are levied against any parcel used for private residential purposes: (i) the maximum special tax rate shall not be increased except to the extent permitted in the applicable Rate and Method; (ii) such special tax shall not be levied later than the fiscal year specified in the Rate and Method; and (iii) under no circumstances shall such special tax in an Improvement Area be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the Improvement Area by more than ten percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. The Board hereby determines the Rate and Method for each Improvement Area set forth in Exhibits C-1, C-2 and C-3 to be reasonable. The special tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act; and such special tax is not on or based upon the value or ownership of real property. In the event that a portion of the property within an Improvement Area shall become for any reason exempt, wholly or partially, from the levy of the special tax specified in the rate and method of the Improvement Area, the Board shall, on behalf of the Community Facilities District, cause the levy to be increased, subject to the limitation of the maximum special tax for a parcel as set forth in the applicable Rate and Method, to the extent necessary upon the remaining property within the Improvement Area which is not exempt in order to yield the special tax revenues required for the purposes described in this Section. The obligation to pay special taxes may be prepaid as provided in the Rates and Methods set forth in Exhibits C-1, C-2 and C-3, as such Rates and Methods may be amended hereafter. Section 6. Public Hearing. A combined public hearing (the “Hearing”) on the establishment of the Community Facilities District and each Improvement Area therein, the proposed Rates and Methods for each Improvement Area and the proposed issuance of bonds for each Improvement Area to finance the Facilities and the Incidental Expenses shall be held at 5:30 p.m., or as soon thereafter as practicable, on June 10, 2020, at the District, 31111 Greenspot Road, Highland, California 92346. If the Board determines to form the Community Facilities District and each Improvement Area therein, special elections will be held to authorize the issuance of the bonds for each Improvement Area and the levy of the special tax in accordance with the procedures contained in Government Code Section 53326. If such elections are held, the proposed voting procedure at the elections will be a landowner vote with each landowner who is the owner of record of land within each Improvement Area at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within each Improvement Area. Ballots for the special elections may be distributed by mail or by personal service. At the time and place set forth above for the Hearing, the Board will receive testimony as to whether the Community Facilities District and each Improvement Area therein shall be established and whether special taxes shall be levied in accordance with the proposed rates and methods of apportionment of the special tax, and whether Obligations for each Improvement Area shall be issued to finance Facilities and Incidental Expenses of the Community Facilities District. East Valley Water District Resolution 2020.09 Page 4 of 60 At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within the Improvement Areas, may appear and be heard. Section 7. Notice. The Secretary of the District is hereby authorized and directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the Community Facilities District. The Secretary of the District is further authorized and directed to mail a copy of the Notice to each of the landowners within the boundaries of the Improvement Areas at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the Improvement Areas and a description of the proposed voting procedure for the elections required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing. Section 8. Reports re Facilities. Each District officer who is or will be responsible for providing the Facilities, if the Community Facilities District is established, is h ereby directed to study the Community Facilities District and, at or before the time of the Hearing, file a report with the Board containing a brief description of the public facilities by type which will in his or her opinion be required to meet adequately the needs of the Community Facilities District and an estimate of the cost of providing those public facilities. Section 9. Advance of Funds. The District may accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred by the District in creating the Community Facilities District and the Improvement Areas therein. The District may enter into an agreement with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the District, with or without interest. Section 10. Maximum Bonded Indebtedness. The reasonably expected maximum principal amount of the Obligations is $24,000,000 for the Community Facilities District, including $12,000,000 for Improvement Area No. 1, $5,000,000 for Improvement Area No. 2 and $7,000,000 for Improvement Area No. 3. Section 11. Appointment of Financing Team. Koppel & Gruber Public Finance is hereby appointed to act as special tax consultant with respect to the formation of the Community Facilities District and the Improvement Areas therein, the issuance of bonds thereby and the preparation of the Community Facilities District report required by Section 53321.5 of the Act. Stradling Yocca Carlson & Rauth, a Professional Corporation, is hereby appointed to act as bond counsel and special counsel with respect to the formation of the Community Facilities District and the bond issuances thereby. Section 12. Reservation of Rights. Except to the extent limited in any bond resolution or trust indenture related to the issuance of bonds, the Board hereby reserves to itself all rights and powers set forth in Section 53344.1 of the Act (relating to tenders in full or partial payment). East Valley Water District Resolution 2020.09 Page 5 of 60 Section 13. Other Actions. The President or Vice President of the Board or the General Manager or Chief Financial Officer of the District or the designee thereof and any other proper officers of the District, acting singly, are hereby authorized and directed to do any and all things and to execute and deliver any and all documents and certificates which such officers may deem necessary or advisable in order to effectuate the purposes of this Resolution, and such actions previously taken by such officers are hereby ratified and confirmed. Section 14. Effect. This Resolution shall take effect immediately. This Resolution shall take effect as of the 22nd day of April 2020. ADOPTED this 22nd day of April 2020. ROLL CALL: Ayes: Noes: Absent: Abstain: David E. Smith, Board President April 22, 2020 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2020.09 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held April 22, 2020. ATTEST: John Mura, Board Secretary A-1 EXHIBIT A DESCRIPTION OF THE PROPOSED COMMUNITY FACILITIES DISTRICT COMMUNITY FACILITIES DISTRICT BOUNDARY: ALL THAT PORTION OF THE SOUTH 1/2 OF SECTION 27 AND ALL THAT PORTION OF THE NORTHWEST 1/4 OF SECTION 34 AND ALL THAT PORTION OF THE SOUTHWEST 1/4 OF SECTION 26, TOWNSHIP 1 NORTH, RANGE 3 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF SAID SOUTHWEST 1/4 OF THE SOUTHWEST 1/4 OF SECTION 27; THENCE SOUTH 89 DEG. 54’ 09” WEST ALONG THE SOUTH LINE OF SAID SOUTHWEST 1/4 OF THE SOUTHWEST 1/4 OF SECTION 27, 900.00 FEET TO THE SOUTHWEST CORNER OF THAT PROPERTY DESCRIBED BY A DEED TO L.C. WAITE, ET AL., IN BOOK 255, PAGE 387, OF DEEDS, RECORDS OF SAID COUNTY; THENCE NORTH 00 DEG. 05’ 55” WEST, ALONG THE WEST LINE OF SAID WAITE PROPERTY, 44.00 FEET TO THE MOST SOUTHERLY CORNER OF THAT PROPERTY DESCRIBED IN A DEED TO THE STATE OF CALIFORNIA IN INSTRUMENT NO. 90-248587, OFFICIAL RECORDS OF SAID COUNTY; THENCE NORTHEASTERLY AND NORTHWESTERLY FOLLOWING THE EASTERLY LINE OF SAID STATE PROPERTY, NORTH 26 DEG. 32’ 20” EAST, 348.41 FEET; THENCE NORTH 35 DEG. 32 ’ 55” WEST, 15.25 FEET; THENCE LEAVING SAID EASTERLY LINE FOLLOWING THE EASTERLY LINE OF THAT PROPERTY DESCRIBED AS PARCEL 1 OF EXHIBIT “B” OF THAT CERTIFICATE OF COMPLIANCE RECORDED AS INSTRUMENT NO. 94-414166, OFFICIAL RECORDS OF SAID COUNTY, NORTH 00 DEG. 53’ 43” EAST, 143.13 FEET; THENCE NORTH 26 DEG. 29’ 16” EAST, 32.07 FEET; THENCE SOUTH 89 DEG. 55’ 10” EAST, 142.65 FEET; THENCE NORTH 29 DEG. 55’ 47” EAST, 76.27 FEET; THENCE NORTH 18 DEG. 03’ 10” EAST, 240.42 FEET; THENCE NORTH 07 DEG. 30’ 31” EAST, 373.60 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE WESTERLY, HAVING A RADIUS OF 78.05 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 12 DEG. 26’ 53” EAST; THENCE NORTHEASTERLY AND NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 228.08 FEET THROUGH A CENTRAL ANGLE OF 167 DEG. 32’ 28”; THENCE ON A NON-TANGENT BEARING, NORTH 89 DEG. 51’ 50” WEST, 66.09 FEET TO THE WEST LINE OF THAT CERTAIN “PARCEL 4” AS DESCRIBED IN A DEED TO RANCHO SAN ANDREAS COMPANY IN INSTRUMENT NO. 90-121848, OFFICIAL RECORDS OF SAID COUNTY; THENCE NORTH 03 DEG. 27’ 45” EAST ALONG SAID WEST LINE OF SAID “PARCEL 4”, 1275.72 FEET TO THE NORTH LINE OF THE SOUTHWEST 1/4 OF SAID SECTION 27; THENCE SOUTH 89 DEG. 36’39” EAST, 712.45 FEET; THENCE SOUTH 37 DEG. 24’27” WEST, 355.45 FEET; THENCE SOUTH 78 DEG. 35’55” EAST, 282.98 FEET; THENCE NORTH 37 DEG. 24’27” EAST, 272.93 FEET; THENCE SOUTH 89 DEG. 54’08” EAST, 973.55 FEET TO A POINT ON A NON -TANGENT CURVE, HAVING A RADIUS OF 225.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 88 DEG. 42’29” WEST; THENCE SOUTHERLY AND SOUTHEASTERLY ALONG SAID A-2 CURVE, AN ARC DISTANCE OF 196.64 FEET THROUGH A CENTRAL ANGLE OF 50 DEG. 04’24” ; THENCE TANGENT TO SAID CURVE, SOUTH 48 DEG. 46’53” EAST, 70.86 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHERLY, HAVING A RADIUS OF 330.00 FEET; THENCE SOUTHEASTERLY AND NORTHEASTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 408.55 FEET THROUGH A CENTRAL ANGLE OF 70 DEG. 56’02”; THENCE TANGENT TO SAID CURVE, NORTH 60 DEG. 17’05” EAST, 64.25 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHERLY, HAVING A RADIUS OF 120.00 FEET; THENCE NORTHEASTERLY AND SOUTHEASTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 212.19 FEET THROUGH A CENTRAL ANGLE OF 101 DEG. 18’50”; THENCE ON A NON-TANGENT BEARING, NORTH 69 DEG. 10’43” EAST, 60.04 FEET TO A POINT ON A NON-TANGENT CURVE, HAVING A RADIUS OF 10.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 70 DEG. 47’30” WEST; THENCE SOUTHEASTERLY AND EASTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 16.47 FEET THROUGH A CENTRAL ANGLE OF 94 DEG. 23’32”; THENCE TANGENT TO SAID CURVE, NORTH 66 DEG. 23’58” EAST, 48.72 FEET; THENCE NORTH 37 DEG. 54’23” EAST, 41.98 FEET; THENCE NORTH 74 DEG. 14’49” EAST, 34.87 FEET; THENCE NORTH 25 DEG. 56’19” EAST, 183.42 FEET; THENCE NORTH 76 DEG. 40’51” EAST, 232.77 FEET; THENCE NORTH 84 DEG. 54’07” EAST, 226.46 FEET; THENCE NORTH 80 DEG. 23’01 EAST, 457.57 FEET; THENCE SOUTH 80 DEG. 28’59” EAST, 468.70 FEET; THENCE SOUTH 71 DEG. 36’45” EAST, 156.81 TO A POINT ON THE EAST LINE OF THE SOUTHEAST 1/4 OF SAID SECTION 27; THENCE CONTINUING SOUTH 71 DEG. 36’45” EAST, 27.81 FEET; THENCE SOUTH 23 DEG. 50’05” EAST, 207.36 FEET; THENCE SOUTH 88 DEG. 24’29” WEST, 67.13 FEET; THENCE SOUTH 55 DEG. 52’51” WEST, 40.54 FEET; THENCE NORTH 70 DEG. 34’04” WEST, 9.46 FEET TO A POINT ON THE EAST LINE OF SAID SECTION 27; THENCE CONTINUING NORTH 70 DEG. 34’04” WEST, 34.39 FEET; THENCE NORTH 82 DEG. 20’31” WEST, 86.75 FEET; THENCE SOUTH 74 DEG. 35’38” WEST, 107.21 FEET; THENCE NORTH 59 DEG. 44’14” WEST, 41.28 FEET; THENCE SOUTH 80 DEG. 01’44” WEST, 92.74 FEET; THENCE SOUTH 85 DEG. 05’40” WEST, 45.87 FEET; THENCE SOUTH 52 DEG. 09’56” WEST, 104.47 FEET; THENCE SOUTH 40 DEG. 15’13” WEST, 55.76 FEET; THENCE SOUTH 00 DEG. 43’26” WEST, 50.23 FEET; THENCE SOUTH 19 DEG. 14’33” EAST, 50.00 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE SOUTHERLY, HAVING A RADIUS OF 475.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 19 DEG. 14’33” WEST; THENCE EASTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 104.91 FEET THROUGH A CENTRAL ANGLE OF 12 DEG. 39’15”; THENCE ON A NON-TANGENT BEARING, SOUTH 27 DEG. 54’56” EAST, 142.75 FEET; THENCE SOUTH 60 DEG. 25’11” EAST, 69.04 FEET; THENCE SOUTH 26 DEG. 30’04” EAST, 40.46 FEET; THENCE SOUTH 88 DEG. 33’35” EAST, 34.56 FEET; THENCE SOUTH 29 DEG. 42’51” EAST, 49.73 FEET; THENCE SOUTH 15 DEG. 55’30 EAST, 45.64 FEET; THENCE SOUTH 27 DEG. 26’13” WEST, 35.86 FEET; THENCE SOUTH 35 DEG. 20’59” EAST, 80.05 FEET; THENCE SOUTH 13 DEG. 50’51” WEST, 120.49 FEET; THENCE SOUTH 71 DEG. 15’34” EAST, 62.29 FEET; THENCE SOUTH 19 DEG. 17’02” EAST, 72.49 FEET; THENCE SOUTH 08 DEG. 43’03” WEST, 29.12 FEET; THENCE SOUTH 15 DEG. 49’23” EAST, 74.20 FEET; THENCE SOUTH 18 DEG. 08’46” WEST, 20.43 FEET; THENCE SOUTH 15 DEG. 21’31” EAST, 80.11 FEET; THENCE SOUTH 01 DEG. 32’07” EAST, 103.84 FEET; THENCE SOUTH 30 DEG. 28’42” WEST, 36.26 FEET; THENCE SOUTH 03 DEG. 45’38” WEST, 75.29 FEET; THENCE SOUTH 17 DEG. A-3 32’19” WEST, 78.35 FEET; THENCE SOUTH 50 DEG. 10’11” WEST, 67.57 FEET; THENCE NORTH 87 DEG. 37’38” WEST, 70.09 FEET; THENCE SOUTH 48 DEG. 33’18” WEST, 202.83 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 175.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 52 DEG. 30’02” WEST; THENCE NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 12.57 FEET THROUGH A CENTRAL ANGLE OF 04 DEG. 06’54”; THENCE ON A NON-TANGENT BEARING, SOUTH 56 DEG. 36’56” WEST, 50.00 FEET; THENCE SOUTH 34 DEG. 06’16” WEST, 158.02 FEET; THENCE SOUTH 48 DEG. 22’52” EAST, 51.60 FEET; THENCE SOUTH 59 DEG. 26’48” EAST, 52.30 FEET; THENCE SOUTH 26 DEG. 31’41” EAST, 57.44 FEET; THENCE SOUTH 61 DEG. 25’42” EAST, 44.72 FEET; THENCE NORTH 72 DEG. 12’59” EAST, 37.20 FEET; THENCE SOUTH 64 DEG. 45’13” EAST, 37.09 FEET; THENCE NORTH 89 DEG. 22’45” EAST, 55.93 FEET; THENCE SOUTH 80 DEG. 40’34” EAST, 27.39 FEET; THENCE SOUTH 87 DEG. 11’59” EAST, 26.13 FEET; THENCE NORTH 81 DEG. 36’34” EAST, 51.82 FEET; THENCE SOUTH 83 DEG. 24’13” EAST, 49.72 FEET; THENCE SOUTH 42 DEG. 43’53” EAST, 50.80 FEET; THENCE SOUTH 69 DEG. 05’29” EAST, 31.92 FEET; THENCE NORTH 39 DEG. 51’53” EAST, 11.96 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE WESTERLY, HAVING A RADIUS OF 375.06 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 68 DEG. 41’09” EAST; THENCE SOUTHERLY ALONG SAID CURVE, AN ARC DISTANCE OF 141.54 FEET THROUGH A CENTRAL ANGLE OF 21 DEG. 37’19” TO A POINT ON THE EAST LINE OF THE SOUTH 1/2 OF SAID SECTION 27, SAID POINT ALSO BEING THE NORTHEAST CORNER OF THAT PROPERTY DESCRIBED IN A DEED TO JACK D. VANDERWOUDE IN INSTRUMENT NO. 88-451867, OFFICIAL RECORDS OF SAID COUNTY, AND AS SHOWN ON A RECORD OF SURVEY FILED IN BOOK 84 OF RECORDS OF SURVEY, PAGE 32, RECORDS OF SAID COUNTY; THENCE ALONG THE WESTERLY AND NORTHERLY LINE OF SAID PROPERTY AS FOLLOWS: ON A NON-TANGENT BEARING, SOUTH 82 DEG. 22’47” WEST, 182.66 FEET; THENCE SOUTH 50 DEG. 03’45” WEST, 168.61 FEET; THENCE SOUTH 73 DEG. 33’55” WEST, 322.13 FEET; THENCE SOUTH 42 DEG. 57’05” WEST, 37.59 FEET; THENCE SOUTH 16 DEG. 29’22” EAST, 113.21 FEET TO A POINT ON THE SOUTH LINE OF THE SOUTH 1/2 OF SAID SECTION 27; THENCE NORTH 89 DEG. 55’06” WEST, ALONG SAID SOUTH LINE, 855.66 FEET TO THE NORTHEAST CORNER OF THAT CERTAIN “PARCEL 2” AS DESCRIBED IN A DEED TO THE COUNTY OF SAN BERNARDINO, RECORDED IN BOOK 5057, PAGE 321, OFFICIAL RECORDS OF SAID COUNTY; THENCE NORTH 68 DEG. 39’06” WEST, ALONG THE NORTH LINE OF SAID “PARCEL 2”, 39.53 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHERLY, HAVING A RADIUS OF 230.00 FEET; THENCE WESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 43.18 FEET THROUGH A CENTRAL ANGLE OF 21 DEG. 15’59”; THENCE TANGENT TO SAID CURVE, NORTH 89 DEG. 55’06” WEST, 569.72 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHERLY, HAVING A RADIUS OF 520.00 FEET; THENCE WESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 64.83 FEET THROUGH A CENTRAL ANGLE OF 14 DEG. 12’48” TO THE POINT OF A REVERSE CURVE, HAVING A RADIUS OF 460.00 FEET; THENCE WESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 114.11 FEET THROUGH A CENTRAL ANGLE OF 14 DEG. 12’48” TO A POINT ON THE SOUTH LINE OF THE SOUTH 1/2 OF SAID SECTION 27; THENCE TANGENT TO SAID CURVE, NORTH 89 DEG. 55’06” WEST, ALONG SAID SOUTH LINE, 264.22 FEET TO THE SOUTHWEST CORNER OF THE A-4 SOUTHEAST 1/4 OF SAID SECTION 27; THENCE SOUTH 00 DEG. 31’08” EAST, ALONG THE WEST LINE OF THE NORTHEAST 1/4 OF SAID SECTION 34, 428.09 FEET; THENCE NORTH 89 DEG. 29’15” EAST, ALONG THE SOUTH LINE OF TERRACE DRIVE, BEING 66.00 FEET WIDE, 555.71 FEET TO THE NORTHWEST CORNER OF LOT 61, TRACT NO. 5299, SYCAMORE HEIGHTS ESTATES, AS PER PLAT RECORDED IN BOOK 76 OF MAPS, PAGES 74 AND 75, RECORDS OF SAID COUNTY; THENCE ALONG THE WESTERLY AND SOUTHWESTERLY BOUNDARY OF SAID TRACT NO. 5299 THE FOLLOWING: SOUTH 00 DEG. 30’45” EAST, 105.00 FEET; THENCE SOUTH 12 DEG. 21’07” EAST, 360.15 FEET; THENCE SOUTH 43 DEG. 16’19” EAST, 225.27 FEET TO THE SOUTHEASTERLY LINE OF THE LAND DESCRIBED IN THE DEED TO TITLE INSURANCE AND TRUST COMPANY, RECORDED AUGUST 11, 1961, IN BOOK 5507, PAGE 397, OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE ALONG SAID SOUTHEASTERLY AND SOUTHWESTERLY LINE THE FOLLOWING: SOUTH 46 DEG. 42’20” WEST, 273.77 FEET; THENCE NORTH 62 DEG. 34’19” WEST, 66.06 FEET; THENCE NORTH 59 DEG. 47’14” WEST, 233.22 FEET; THENCE NORTH 63 DEG. 44’53” WEST, 361.44 FEET TO A POINT ON THE WEST LINE OF SAID NORTHEAST 1/4 OF SAID SECTION 34; THENCE NORTH 00 DEG. 31’08” WEST, ALONG SAID WEST LINE, 98.92 FEET; THENCE NORTH 57 DEG. 46’39” WEST, 60.84 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 70.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 44 DEG. 44’46” EAST; THENCE SOUTHWESTERLY AND WESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 55.92 FEET THROUGH A CENTRAL ANGLE OF 45 DEG. 46’22”; THENCE TANGENT TO SAID CURVE, NORTH 88 DEG. 58’24” WEST, 95.09 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHERLY, HAVING A RADIUS OF 68.00 FEET; THENCE WESTERLY AND SOUTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 71.41 FEET THROUGH A CENTRAL ANGLE OF 60 DEG. 10’12” TO A POINT OF REVERSE CURVE HAVING A RADIUS OF 8.00 FEET; THENCE SOUTHWESTERLY AND NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 12.57 FEET THROUGH A CENTRAL ANGLE OF 90 DEG. 00’00”; THENCE ON A NON-TANGENT BEARING, SOUTH 30 DEG. 51’24” WEST, 8.94 FEET TO A POINT ON THE NORTHEASTERLY LINE OF THAT PROPERTY DESCRIBED IN A DEED TO THE COUNTY OF SAN BERNARDINO, RECORDED IN BOOK 1555, PAGE 151, OFFICIAL RECORDS OF SAID COUNTY; THENCE FOLLOWING THE NORTHEASTERLY AND NORTHERLY LINE OF SAID COUNTY PROPERTY, NORTH 58 DEG. 58’32” WEST, 95.31 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHERLY, HAVING A RADIUS OF 741.20 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 360.29 FEET THROUGH A CENTRAL ANGLE OF 27 DEG. 51’04”; THENCE TANGENT TO SAID CURVE, NORTH 86 DEG. 49’36” WEST, 36.93 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHERLY, HAVING A RADIUS OF 206.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 186.84 FEET THROUGH A CENTRAL ANGLE OF 51 DEG. 58’03”; THENCE TANGENT TO SAID CURVE, NORTH 34 DEG. 51’33” WEST, 169.50 FEET TO THE BEGINNING OF TANGENT CURVE CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 1121.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 164.86 FEET THROUGH A CENTRAL ANGLE OF 08 DEG. 25’35”; THENCE TANGENT TO SAID CURVE, NORTH 26 DEG. 25’58” WEST, 192.31 FEET TO THE BEGINNING OF A A-5 TANGENT CURVE CONCAVE SOUTHWESTERLY, HAVING A RADIUS OF 325.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 232.82 FEET THROUGH A CENTRAL ANGLE OF 41 DEG. 02’41” TO A POINT ON THE SOUTH LINE OF THE SOUTH 1/2 OF SAID SECTION 27; THENCE ON A NON-TANGENT BEARING, SOUTH 89 DEG. 54’09” WEST, ALONG SAID SOUTH LINE, 10.49 FEET TO THE POINT OF BEGINNING. IMPROVEMENT AREA NO. 1: ALL THAT PORTION OF THE SOUTH 1/2 OF SECTION 27 AND ALL THAT PORTION OF THE NORTHWEST 1/4 OF SECTION 34, TOWNSHIP 1 NORTH, RANGE 3 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF SAID SOUTHWEST 1/4 OF THE SOUTHWEST 1/4 OF SECTION 27; THENCE SOUTH 89 DEG. 54’ 09” WEST ALONG THE SOUTH LINE OF SAID SOUTHWEST 1/4 OF THE SOUTHWEST 1/4 OF SECTION 27, 900.00 FEET TO THE SOUTHWEST CORNER OF THAT PROPERTY DESCRIBED BY A DEED TO L.C. WAITE, ET AL., IN BOOK 255, PAGE 387, OF DEEDS, RECORDS OF SAID COUNTY; THENCE NORTH 00 DEG. 05’ 55” WEST, ALONG THE WEST LINE OF SAID WAITE PROPERTY, 44.00 FEET TO THE MOST SOUTHERLY CORNER OF THAT PROPERTY DESCRIBED IN A DEED TO THE STATE OF CALIFORNIA IN INSTRUMENT NO. 90-248587, OFFICIAL RECORDS OF SAID COUNTY; THENCE NORTHEASTERLY AND NORTHWESTERLY FOLLOWING THE EASTERLY LINE OF SAID STATE PROPERTY, NORTH 26 DEG. 32’ 20” EAST, 348.41 FEET; THENCE NORTH 35 DEG. 32’ 55” WEST, 15.25 FEET; THENCE LEAVING SAID EASTERLY LINE FOLLOWING THE EASTERLY LINE OF THAT PROPERTY DESCRIBED AS PARCEL 1 OF EXHIBIT “B” OF THAT CERTIFICATE OF COMPLIANCE RECORDED AS INSTRUMENT NO. 94-414166, OFFICIAL RECORDS OF SAID COUNTY, NORTH 00 DEG. 53’ 43” EAST, 143.13 FEET; THENCE NORTH 26 DEG. 29’ 16” EAST, 32.07 FEET; THENCE SOUTH 89 DEG. 55’ 10” EAST, 142.65 FEET; THENCE NORTH 29 DEG. 55’ 47” EAST, 76.27 FEET; THENCE NORTH 18 DEG. 03’ 10” EAST, 240.42 FEET; THENCE NORTH 07 DEG. 30’ 31” EAST, 373.60 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE WESTERLY, HAVING A RADIUS OF 78.05 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 12 DEG. 26’ 53” EAST; THENCE NORTHEASTERLY AND NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 228.08 FEET THROUGH A CENTRAL ANGLE OF 167 DEG. 32’ 28”; THENCE ON A NON-TANGENT BEARING, NORTH 89 DEG. 51’ 50” WEST, 66.09 FEET TO THE WEST LINE OF THAT CERTAIN “PARCEL 4” AS DESCRIBED IN A DEED TO RANCHO SAN ANDREAS COMPANY IN INSTRUMENT NO. 90-121848, OFFICIAL RECORDS OF SAID COUNTY; THENCE NORTH 03 DEG. 27’ 45” EAST ALONG SAID WEST LINE OF SAID “PARCEL 4”, 1275.72 FEET TO THE NORTH LINE OF THE SOUTHWEST 1/4 OF SAID SECTION 27; THENCE SOUTH 89 DEG. 36’39” EAST, 712.45 FEET; THENCE SOUTH 37 DEG. 24’27” WEST, 355.45 FEET; THENCE SOUTH 78 DEG. 35’55” EAST, 282.98 FEET; THENCE NORTH 37 DEG. 24’27” EAST, 272.93 FEET; THENCE SOUTH 89 DEG. 54’08” EAST, 50.62 FEET; THENCE SOUTH 00 DEG. 05’52” WEST, 1019.19 FEET; THENCE SOUTH 46 DEG. 10’12” WEST, 127.48 FEET; THENCE NORTH 48 A-6 DEG. 39’07” WEST, 83.47 FEET; THENCE SOUTH 46 DEG. 08’10” WEST, 291.33 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE EASTERLY, HAVING A RADIUS OF 300.00 FEET; THENCE SOUTHWESTERLY AND SOUTHEASTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 440.60 FEET THROUGH A CENTRAL ANGLE OF 84 DEG. 08’57”; THENCE TANGENT TO SAID CURVE, SOUTH 38 DEG. 00’47” EAST, 652.99 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY, HAVING A RADIUS OF 350.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 67.12 FEET THROUGH A CENTRAL ANGLE OF 10 DEG. 59’15”; THENCE ON A NON-TANGENT BEARING, NORTH 88 DEG. 25’29” EAST, 748.39 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE SOUTHEASTERLY, A RADIAL LINE TO SAID POINT BEARS NORTH 71 DEG. 26’02” WEST; THENCE SOUTHERLY ALONG SAID CURVE, AN ARC DISTANCE OF 123.91 FEET THROUGH A CENTRAL ANGLE OF 19 DEG. 05’06”; THENCE TANGENT TO SAID CURVE, SOUTH 00 DEG. 31’08” EAST, 174.85 FEET TO THE SOUTHEAST CORNER OF THE SOUTHWEST 1/4 OF SAID SECTION 27; THENCE CONTINUING SOUTH 00 DEG. 031’08” EAST, ALONG THE EAST LINE OF THE NORTHWEST 1/4 OF SECTION 34, TOWNSHIP 1 NORTH, RANGE 3 WEST, SAN BERNARDINO BASE AND MERIDIAN, 434.08 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE WESTERLY, HAVING A RADIUS OF 300.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE, AN ARC DISTANCE OF 101.02 FEET THROUGH A CENTRAL ANGLE OF 37 DEG. 13’08”; THENCE SOUTH 36 DEG. 42’01” WEST, 244.47 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 68.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 09 DEG. 08’23” WEST; THENCE SOUTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 59.35 FEET THROUGH A CENTRAL ANGLE OF 50 DEG. 00’13” TO A POINT OF REVERSE CURVE HAVING A RADIUS OF 8.00 FEET; THENCE SOUTHWESTERLY AND NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 12.57 FEET THROUGH A CENTRAL ANGLE OF 90 DEG. 00’00”; THENCE ON A NON-TANGENT BEARING, SOUTH 30 DEG. 51’24” WEST, 8.94 FEET TO A POINT ON THE NORTHEASTERLY LINE OF THAT PROPERTY DESCRIBED IN A DEED TO THE COUNTY OF SAN BERNARDINO, RECORDED IN BOOK 1555, PAGE 151, OFFICIAL RECORDS OF SAID COUNTY; THENCE FOLLOWING THE NORTHEASTERLY AND NORTHERLY LINE OF SAID COUNTY PROPERTY, NORTH 58 DEG. 58’32” WEST, 95.31 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHERLY, HAVING A RADIUS OF 741.20 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 360.29 FEET THROUGH A CENTRAL ANGLE OF 27 DEG. 51’04”; THENCE TANGENT TO SAID CURVE, NORTH 86 DEG. 49’36” WEST, 36.93 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHERLY, HAVING A RADIUS OF 206.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 186.84 FEET THROUGH A CENTRAL ANGLE OF 51 DEG. 58’03”; THENCE TANGENT TO SAID CURVE, NORTH 34 DEG. 51’33” WEST, 169.50 FEET TO THE BEGINNING OF TANGENT CURVE CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 1121.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 164.86 FEET THROUGH A CENTRAL ANGLE OF 08 DEG. 25’35”; THENCE TANGENT TO SAID CURVE, NORTH 26 DEG. 25’58” WEST, 192.31 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY, HAVING A RADIUS OF 325.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 232.82 FEET A-7 THROUGH A CENTRAL ANGLE OF 41 DEG. 02’41” TO A POINT ON THE SOUTH LINE OF THE SOUTH 1/2 OF SAID SECTION 27; THENCE ON A NON-TANGENT BEARING, SOUTH 89 DEG. 54’09” WEST, ALONG SAID SOUTH LINE, 10.49 FEET TO THE POINT OF BEGINNING. EXCLUDING THEREFROM THE RIGHT OF WAY ALONG HIGHLAND AVENUE, AS DESCRIBED IN INSTRUMENT NO. 90-248588, OFFICIAL RECORDS OF SAID COUNTY. IMPROVEMENT AREA NO. 2: ALL THAT PORTION OF THE SOUTH 1/2 OF SECTION 27, TOWNSHIP 1 NORTH, RANGE 3 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF THE SOUTHWEST 1/4 OF SAID SECTION 27; THENCE NORTH 00 DEG. 31’08” WEST, ALONG THE EAST LINE OF SAID SOUTHWEST 1/4, 174.85 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE EASTERLY, HAVING A RADIUS OF 372.00 FEET; THENCE NORTHERLY ALONG SAID CURVE, AN ARC DISTANCE OF 123.91 FEET THROUGH A CENTRAL ANGLE OF 19 DEG. 05’06” TO THE TRUE POINT OF BEGINNING, A RADIAL LINE TO SAID POINT BEARS NORTH 71 DEG. 26’02” WEST; THENCE CONTINUING NORTHERLY AND NORTHEASTERLY ALONG SAID CURVE HAVING A RADIUS OF 372.00 FEET, AN ARC DISTANCE OF 367.12 FEET THROUGH A CENTRAL ANGLE OF 56 DEG. 32’37” TO A POINT OF REVERSE CURVE, HAVING A RADIUS OF 2500.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 400.81 FEET THROUGH A CENTRAL ANGLE OF 09 DEG. 11’09” TO A POINT OF REVERSE CURVE, HAVING A RADIUS OF 1500.00 FEET; THENCE NORTHEASTERLY ALONG SA ID CURVE, AN ARC DISTANCE OF 226.97 FEET THROUGH A CENTRAL ANGLE OF 08 DEG. 40’10” TO A POINT OF REVERSE CURVE, HAVING A RADIUS OF 650.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 61.48 FEET THROUGH A CENTRAL ANGLE OF 03 DEG. 31’20”; THENCE ON A NON-TANGENT BEARING, NORTH 20 DEG. 52’25” WEST, 120.03 FEET; THENCE NORTH 03 DEG. 15’46” EAST, 58.15 FEET; THENCE NORTH 54 DEG. 50’36” EAST, 3.21 FEET; THENCE NORTH 01 DEG. 06’59” EAST, 42.38 FEET; THENCE NORTH 05 DEG. 34’25” EAST, 6.56 FEET; THENCE NORTH 45 DEG. 45’12” WEST, 46.98 FEET; THENCE NORTH 03 DEG. 10’45” EAST, 9.57 FEET; THENCE NORTH 53 DEG. 21’46” WEST, 47.15 FEET; THENCE NORTH 09 DEG. 08’55” WEST, 9.16 FEET; THENCE NORTH 61 DEG. 45’55” WEST, 46.53 FEET; THENCE NORTH 19 DEG. 32’26” WEST, 7.93 FEET; THENCE NORTH 67 DEG. 22’30” WEST, 49.15 FEET; THENCE NORTH 23 DEG. 39’33” WEST, 4.98 FEET; THENCE NORTH 64 DEG. 01’10” WEST, 58.48 FEET; THENCE 16 DEG. 06’47” WEST, 3.80 FEET; THENCE NORTH 58 DEG. 14’39” WEST, 58.67 FEET; THENCE 10 DEG. 54’35” WEST, 3.24 FEET; THENCE NORTH 52 DEG. 36’44” WEST, 50.34 FEET; THENCE SOUTH 78 DEG. 08’32” WEST, 30.42 FEET; THENCE SOUTH 67 DEG. 29’25” WEST, 104.64 FEET; THENCE NORTH 69 DEG. 51’44” WEST, 315.45 FEET; THENCE SOUTH 88 DEG. 41’06” WEST, 484.95 FEET; THENCE SOUTH 02 DEG. 41’26” WEST, 100.66 FEET; THENCE SOUTH 03 DEG. 10’24” EAST, 61.49 FEET; THENCE SOUTH 25 DEG. 11’54” EAST, 177.44 FEET; A-8 THENCE SOUTH 31 DEG. 38’37” WEST, 10.94 FEET; THENCE SOUTH 08 DEG. 19’33” EAST, 2.01 FEET; THENCE SOUTH 81 DEG. 40’27” WEST, 46.09 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHERLY, HAVING A RADIUS OF 331.00 FEET; THENCE WESTERLY AND NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 310.58 FEET THROUGH A CENTRAL ANGLE OF 53 DEG. 45’39”; THENCE TANGENT TO SAID CURVE, NORTH 44 DEG. 34’42” WEST, 67.56 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY, HAVING A RADIUS OF 1039.00 FEET, THENCE NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 93.82 FEET THROUGH A CENTRAL ANGLE OF 05 DEG. 10’25”; THENCE TANGENT TO SAID CURVE, NORTH 49 DEG. 45’06” WEST, 101.44 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 4961.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 95.24 FEET THROUGH A CENTRAL ANGLE OF 01 DEG. 06’00”; THENCE TANGENT TO SAID CURVE, NORTH 48 DEG. 39’07” WEST, 228.50 FEET; THENCE SOUTH 46 DEG. 08’10” WEST, 291.33 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE EASTERLY, HAVING A RADIUS OF 300.00 FEET; THENCE SOUTHWESTERLY AND SOUTHEASTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 440.60 FEET THROUGH A CENTRAL ANGLE OF 84 DEG. 08’57”; THENCE TANGENT TO SAID CURVE, SOUTH 38 DEG. 00’47” EAST, 652.99 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY, HAVING A RADIUS OF 350.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 67.12 FEET THROUGH A CENTRAL ANGLE OF 10 DEG. 59’15”; THENCE ON A NON -TANGENT BEARING, NORTH 88 DEG. 25’29” EAST, 748.39 FEET TO THE TRUE POINT OF BEGINNING. IMPROVEMENT AREA NO. 3: ALL THAT PORTION OF THE SOUTH 1/2 OF SECTION 27 AND ALL THAT PORTION OF THE SOUTHWEST 1/4 OF SECTION 26 AND ALL THAT PORTION OF THE NORTH 1/2 OF SECTION 34, TOWNSHIP 1 NORTH, RANGE 3 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF THE SOUTHWEST 1/4 OF SAID SECTION 27; THENCE NORTH 00 DEG. 31’08” WEST, ALONG THE EAST LINE OF SAID SOUTHWEST 1/4, 174.85 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE EASTERLY, HAVING A RADIUS OF 372.00 FEET; THENCE NORTHERLY AND NORTHEASTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 491.03 FEET THROUGH A CENTRAL ANGLE OF 75 DEG. 37’43” TO A POINT OF REVERSE CURVE, HAVING A RADIUS OF 2500.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 400.81 FEET THROUGH A CENTRAL ANGLE OF 09 DEG. 11’09” TO A POINT OF REVERSE CURVE, HAVING A RADIUS OF 1500.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 226.97 FEET THROUGH A CENTRAL ANGLE OF 08 DEG. 40’10” TO A POINT OF REVERSE CURVE, HAVING A RADIUS OF 650.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 61.48 FEET THROUGH A CENTRAL ANGLE OF 03 DEG. A-9 31’20”; THENCE ON A NON-TANGENT BEARING, NORTH 20 DEG. 52’25” WEST, 120.03 FEET; THENCE NORTH 03 DEG. 15’46” EAST, 58.15 FEET; THENCE NORTH 54 DEG. 50’36” EAST, 3.21 FEET; THENCE NORTH 01 DEG. 06’59” EAST, 42.38 FEET; THENCE NORTH 05 DEG. 34’25” EAST, 6.56 FEET; THENCE NORTH 45 DEG. 45’12” WEST, 46.98 FEET; THENCE NORTH 03 DEG. 10’45” EAST, 9.57 FEET; THENCE NORTH 53 DEG. 21’46” WEST, 47.15 FEET; THENCE NORTH 09 DEG. 08’55” WEST, 9.16 FEET; THENCE NORTH 61 DEG. 45’55” WEST, 46.53 FEET; THENCE NORTH 19 DEG. 32’26” WEST, 7.93 FEET; THENCE NORTH 67 DEG. 22’30” WEST, 49.15 FEET; THENCE NORTH 23 DEG. 39’33” WEST, 4.98 FEET; THENCE NORTH 64 DEG. 01’10” WEST, 58.48 FEET; THENCE 16 DEG. 06’47” WEST, 3.80 FEET; THENCE NORTH 58 DEG. 14’39” WEST, 58.67 FEET; THENCE 10 DEG. 54’35” WEST, 3.24 FEET; THENCE NORTH 52 DEG. 36’44” WEST, 50.34 FEET; THENCE SOUTH 78 DEG. 08’32” WEST, 30.42 FEET; THENCE SOUTH 67 DEG. 29’25” WEST, 104.64 FEET; THENCE NORTH 69 DEG. 51’44” WEST, 315.45 FEET; THENCE SOUTH 88 DEG. 41’06” WEST, 484.95 FEET; THENCE SOUTH 02 DEG. 41’26” WEST, 100.66 FEET; THENCE SOUTH 03 DEG. 10’24” EAST, 61.49 FEET; THENCE SOUTH 25 DEG. 11’54” EAST, 177.44 FEET; THENCE SOUTH 31 DEG. 38’37” WEST, 10.94 FEET; THENCE SOUTH 08 DEG. 19’33” EAST, 2.01 FEET; THENCE SOUTH 81 DEG. 40’27” WEST, 46.09 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHERLY, HAVING A RADIUS OF 331.00 FEET; THENCE WESTERLY AND NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 310.58 FEET THROUGH A CENTRAL ANGLE OF 53 DEG. 45’39”; THENCE TANGENT TO SAID CURVE, NORTH 44 DEG. 34’42” WEST, 67.56 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY, HAVING A RADIUS OF 1039.00 FEET, THENCE NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 93.82 FEET THROUGH A CENTRAL ANGLE OF 05 DEG. 10’25”; THENCE TANGENT TO SAID CURVE, NORTH 49 DEG. 45’06” WEST, 101.44 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 4961.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 95.24 FEET THROUGH A CENTRAL ANGLE OF 01 DEG. 06’00”; THENCE TANGENT TO SAID CURVE, NORTH 48 DEG. 39’07” WEST, 145.03 FEET; THENCE NORTH 46 DEG. 10’12” EAST, 127.48 FEET; THENCE NORTH 00 DEG. 05’52” EAST, 1019.19 FEET; THENCE SOUTH 89 DEG. 54’08” EAST, 922.93 FEET TO A POINT ON A NON -TANGENT CURVE, HAVING A RADIUS OF 225.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 88 DEG. 42’29” WEST; THENCE SOUTHERLY AND SOUTHEASTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 196.64 FEET THROUGH A CENTRAL ANGLE OF 50 DEG. 04’24” ; THENCE TANGENT TO SAID CURVE, SOUTH 48 DEG. 46’53” EAST, 70.86 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHERLY, HAVING A RADIUS OF 330.00 FEET; THENCE SOUTHEASTERLY AND NORTHEASTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 408.55 FEET THROUGH A CENTRAL ANGLE OF 70 DEG. 56’02”; THENCE TANGENT TO SAID CURVE, NORTH 60 DEG. 17’05” EAST, 64.25 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHERLY, HAVING A RADIUS OF 120.00 FEET; THENCE NORTHEASTERLY AND SOUTHEASTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 212.19 FEET THROUGH A CENTRAL ANGLE OF 101 DEG. 18’50”; THENCE ON A NON-TANGENT BEARING, NORTH 69 DEG. 10’43” EAST, 60.04 FEET TO A POINT ON A NON-TANGENT CURVE, HAVING A RADIUS OF 10.00 FEET, A RADIAL LINE TO SAID POINT BEARS A-10 SOUTH 70 DEG. 47’30” WEST; THENCE SOUTHEASTERLY AND EASTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 16.47 FEET THROUGH A CENTRAL ANGLE OF 94 DEG. 23’32”; THENCE TANGENT TO SAID CURVE, NORTH 66 DEG. 23’58” EAST, 48.72 FEET; THENCE NORTH 37 DEG. 54’23” EAST, 41.98 FEET; THENCE NORTH 74 DEG. 14’49” EAST, 34.87 FEET; THENCE NORTH 25 DEG. 56’19” EAST, 183.42 FEET; THENCE NORTH 76 DEG. 40’51” EAST, 232.77 FEET; THENCE NORTH 84 DEG. 54’07” EAST, 226.46 FEET; THENCE NORTH 80 DEG. 23’01 EAST, 457.57 FEET; THENCE SOUTH 80 DEG. 28’59” EAST, 468.70 FEET; THENCE SOUTH 71 DEG. 36’45” EAST, 156.81 TO A POINT ON THE EAST LINE OF THE SOUTHEAST 1/4 OF SAID SECTION 27; THENCE CONTINUING SOUTH 71 DEG. 36’45” EAST, 27.81 FEET; THENCE SOUTH 23 DEG. 50’05” EAST, 207.36 FEET; THENCE SOUTH 88 DEG. 24’29” WEST, 67.13 FEET; THENCE SOUTH 55 DEG. 52’51” WEST, 40.54 FEET; THENCE NORTH 70 DEG. 34’04” WEST, 9.46 FEET TO A POINT ON THE EAST LINE OF SAID SECTION 27; THENCE CONTINUING NORTH 70 DEG. 34’04” WEST, 34.39 FEET; THENCE NORTH 82 DEG. 20’31” WEST, 86.75 FEET; THENCE SOUTH 74 DEG. 35’38” WEST, 107.21 FEET; THENCE NORTH 59 DEG. 44’14” WEST, 41.28 FEET; THENCE SOUTH 80 DEG. 01’44” WEST, 92.74 FEET; THENCE SOUTH 85 DEG. 05’40” WEST, 45.87 FEET; THENCE SOUTH 52 DEG. 09’56” WEST, 104.47 FEET; THENCE SOUTH 40 DEG. 15’13” WEST, 55.76 FEET; THENCE SOUTH 00 DEG. 43’26” WEST, 50.23 FEET; THENCE SOUTH 19 DEG. 14’33” EAST, 50.00 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE SOUTHERLY, HAVING A RADIUS OF 475.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 19 DEG. 14’33” WEST; THENCE EASTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 104.91 FEET THROUGH A CENTRAL ANGLE OF 12 DEG. 39’15”; THENCE ON A NON-TANGENT BEARING, SOUTH 27 DEG. 54’56” EAST, 142.75 FEET; THENCE SOUTH 60 DEG. 25’11” EAST, 69.04 FEET; THENCE SOUTH 26 DEG. 30’04” EAST, 40.46 FEET; THENCE SOUTH 88 DEG. 33’35” EAST, 34.56 FEET; THENCE SOUTH 29 DEG. 42’51” EAST, 49.73 FEET; THENCE SOUTH 15 DEG. 55’30 EAST, 45.64 FEET; THENCE SOUTH 27 DEG. 26’13” WEST, 35.86 FEET; THENCE SOUTH 35 DEG. 20’59” EAST, 80.05 FEET; THENCE SOUTH 13 DEG. 50’51” WEST, 120.49 FEET; THENCE SOUTH 71 DEG. 15’34” EAST, 62.29 FEET; THENCE SOUTH 19 DEG. 17’02” EAST, 72.49 FEET; THENCE SOUTH 08 DEG. 43’03” WEST, 29.12 FEET; THENCE SOUTH 15 DEG. 49’23” EAST, 74.20 FEET; THENCE SOUTH 18 DEG. 08’46” WEST, 20.43 FEET; THENCE SOUTH 15 DEG. 21’31” EAST, 80.11 FEET; THENCE SOUTH 01 DEG. 32’07” EAST, 103.84 FEET; THENCE SOUTH 30 DEG. 28’42” WEST, 36.26 FEET; THENCE SOUTH 03 DEG. 45’38” WEST, 75.29 FEET; THENCE SOUTH 17 DEG. 32’19” WEST, 78.35 FEET; THENCE SOUTH 50 DEG. 10’11” WEST, 67.57 FEET; THENCE NORTH 87 DEG. 37’38” WEST, 70.09 FEET; THENCE SOUTH 48 DEG. 33’18” WEST, 202.83 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 175.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 52 DEG. 30’02” WEST; THENCE NORTHWESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 12.57 FEET THROUGH A CENTRAL ANGLE OF 04 DEG. 06’54”; THENCE ON A NON-TANGENT BEARING, SOUTH 56 DEG. 36’56” WEST, 50.00 FEET; THENCE SOUTH 34 DEG. 06’16” WEST, 158.02 FEET; THENCE SOUTH 48 DEG. 22’52” EAST, 51.60 FEET; THENCE SOUTH 59 DEG. 26’48” EAST, 52.30 FEET; THENCE SOUTH 26 DEG. 31’41” EAST, 57.44 FEET; THENCE SOUTH 61 DEG. 25’42” EAST, 44.72 FEET; THENCE NORTH 72 DEG. 12’59” EAST, 37.20 FEET; THENCE SOUTH 64 DEG. 45’13” EAST, 37.09 FEET; THENCE NORTH 89 DEG. 22’45” EAST, 55.93 FEET; THENCE SOUTH 80 DEG. A-11 40’34” EAST, 27.39 FEET; THENCE SOUTH 87 DEG. 11’59” EAST, 26.13 FEET; THENCE NORTH 81 DEG. 36’34” EAST, 51.82 FEET; THENCE SOUTH 83 DEG. 24’13” EAST, 49.72 FEET; THENCE SOUTH 42 DEG. 43’53” EAST, 50.80 FEET; THENCE SOUTH 69 DEG. 05’29” EAST, 31.92 FEET; THENCE NORTH 39 DEG. 51’53” EAST, 11.96 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE WESTERLY, HAVING A RADIUS OF 375.06 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 68 DEG. 41’09” EAST; THENCE SOUTHERLY ALONG SAID CURVE, AN ARC DISTANCE OF 141.54 FEET THROUGH A CENTRAL ANGLE OF 21 DEG. 37’19” TO A POINT ON THE EAST LINE OF THE SOUTH 1/2 OF SAID SECTION 27, SAID POINT ALSO BEING THE NORTHEAST CORNER OF THAT PROPERTY DESCRIBED IN A DEED TO JACK D. VANDERWOUDE IN INSTRUMENT NO. 88-451867, OFFICIAL RECORDS OF SAID COUNTY, AND AS SHOWN ON A RECORD OF SURVEY FILED IN BOOK 84 OF RECORDS OF SURVEY, PAGE 32, RECORDS OF SAID COUNTY; THENCE ALONG THE WESTERLY AND NORTHERLY LINE OF SAID PROPERTY AS FOLLOWS: ON A NON-TANGENT BEARING, SOUTH 82 DEG. 22’47” WEST, 182.66 FEET; THENCE SOUTH 50 DEG. 03’45” WEST, 168.61 FEET; THENCE SOUTH 73 DEG. 33’55” WEST, 322.13 FEET; THENCE SOUTH 42 DEG. 57’05” WEST, 37.59 FEET; THENCE SOUTH 16 DEG. 29’22” EAST, 113.21 FEET TO A POINT ON THE SOUTH LINE OF THE SOUTH 1/2 OF SAID SECTION 27; THENCE NORTH 89 DEG. 55’06” WEST, ALONG SAID SOUTH LINE, 855.66 FEET TO THE NORTHEAST CORNER OF THAT CERTAIN “PARCEL 2” AS DESCRIBED IN A DEED TO THE COUNTY OF SAN BERNARDINO, RECORDED IN BOOK 5057, PAGE 321, OFFICIAL RECORDS OF SAID COUNTY; THENCE NORTH 68 DEG. 39’06” WEST, ALONG THE NORTH LINE OF SAID “PARCEL 2”, 39.53 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHERLY, HAVING A RADIUS OF 230.00 FEET; THENCE WESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 43.18 FEET THROUGH A CENTRAL ANGLE OF 21 DEG. 15’59”; THENCE TANGENT TO SAID CURVE, NORTH 89 DEG. 55’06” WEST, 569.72 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHERLY, HAVING A RADIUS OF 520.00 FEET; THENCE WESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 64.83 FEET THROUGH A CENTRAL ANGLE OF 14 DEG. 12’48” TO THE POINT OF A REVERSE CURVE, HAVING A RADIUS OF 460.00 FEET; THENCE WESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 114.11 FEET THROUGH A CENTRAL ANGLE OF 14 DEG. 12’48” TO A POINT ON THE SOUTH LINE OF THE SOUTH 1/2 OF SAID SECTION 27; THENCE TANGENT TO SAID CURVE, NORTH 89 DEG. 55’06” WEST, ALONG SAID SOUTH LINE, 264.22 FEET TO THE POINT OF BEGINNING. ALSO COMMENCING AT THE NORTHWEST CORNER OF THE NORTHEAST 1/4 OF SAID SECTION 34; THENCE SOUTH 00 DEG. 31’08” EAST, ALONG THE WEST LINE OF SAID NORTHEAST 1/4, 428.09 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 89 DEG. 29’15” EAST, ALONG THE SOUTH LINE OF TERRACE DRIVE, BEING 66.00 FEET WIDE, 555.71 FEET TO THE NORTHWEST CORNER OF LOT 61, TRACT NO. 5299, SYCAMORE HEIGHTS ESTATES, AS PER PLAT RECORDED IN BOOK 76 OF MAPS, PAGES 74 AND 75, RECORDS OF SAID COUNTY; THENCE ALONG THE WESTERLY AND SOUTHWESTERLY BOUNDARY OF SAID TRACT NO. 5299 THE FOLLOWING: SOUTH 00 DEG. 30’45” EAST, 105.00 FEET; THENCE SOUTH 12 DEG. 21’07” EAST, 360.15 FEET; THENCE SOUTH 43 DEG. 16’19” EAST, 225.27 FEET TO THE SOUTHEASTERLY LINE OF THE LAND DESCRIBED IN THE DEED TO TITLE INSURANCE AND TRUST COMPANY, RECORDED AUGUST 11, 1961, IN BOOK 5507, A-12 PAGE 397, OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE ALONG SAID SOUTHEASTERLY AND SOUTHWESTERLY LINE THE FOLLOWING: SOUTH 46 DEG. 42’20” WEST, 273.77 FEET; THENCE NORTH 62 DEG. 34’19” WEST, 66.06 FEET; THENCE NORTH 59 DEG. 47’14” WEST, 233.22 FEET; THENCE NORTH 63 DEG. 44’53” WEST, 361.44 FEET TO A POINT ON THE WEST LINE OF SAID NORTHEAST 1/4 OF SAID SECTION 34; THENCE NORTH 00 DEG. 31’08” WEST, ALONG SAID WEST LINE, 98.92 FEET; THENCE NORTH 57 DEG. 46’39” WEST, 60.84 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 70.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 44 DEG. 44’46” EAST; THENCE SOUTHWESTERLY AND WESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 55.92 FEET THROUGH A CENTRAL ANGLE OF 45 DEG. 46’22”; THENCE TANGENT TO SAID CURVE, NORTH 88 DEG. 58’24” WEST, 95.09 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHERLY, HAVING A RADIUS OF 68.00 FEET; THENCE WESTERLY ALONG SAID CURVE, AN ARC DISTANCE OF 12.07 FEET THROUGH A CENTRAL ANGLE OF 10 DEG. 09’59”; THENCE ON A NON- TANGENT BEARING, NORTH 36 DEG. 42’01” EAST, 244.47 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE WESTERLY, HAVING A RADIUS OF 300.00 FEET; THENCE NORTHERLY ALONG SAID CURVE, AN ARC DISTANCE OF 194.88 FEET THROUGH A CENTRAL ANGLE OF 37 DEG. 13’08” TO A POINT ON THE WEST LINE OF THE NORTHEAST 1/4 OF SAID SECTION 34; THENCE TANGENT TO SAID CURVE, NORTH 00 DEG. 31’08” WEST, 5.99 FEET TO THE TRUE POINT OF BEGINNING. B-1 EXHIBIT B DESCRIPTION OF PUBLIC FACILITIES The proposed types of facilities and expense to be financed by the Community Facilities District include: The construction, purchase, modification, expansion, rehabilitation and/or improvement of water and sewer facilities of the East Valley Water District as well as the acquisition of capacity in the sewer system and/or water system of the East Valley Water District, and all appurtenances and appurtenant work in connection with the foregoing water and sewer facilities, including, without limitation, the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such water and sewer facilities, and any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion, inspection and financing of such facilities. April 10, 2020 C-1 1 Community Facilities District No. 2020-1 (Highland Hills) IA No. 1 East Valley Water District CO MMUNITY FACILITIES DISTRICT NO. 2020-1 (HI GHLAND HILLS) IMPROVEMENT AREA NO. 1 OF THE EAST VALLEY WATER DISTRICT RATE AND METHOD OF APPORTIONMENT A Special Tax shall be levied on all Taxable Property (as defined below) within the boundaries of Improvement Area No. 1 (“IA No. 1”) Community Facilities District No. 2020-1 (Highland Hills), (“CFD No. 2020-1”) of the East Valley Water District (“Water District”) and collected each Fiscal Year commencing in Fiscal Year 2020/2021 in an amount determined by the Water District Board (as defined below), through the application of this Rate and Method of Apportionment of the Special Tax to the extent and in the manner herein provided. 1. DEFINITIONS “Acreage” or “Acre” means the land area of an Assessor’s Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, parcel map, condominium plan, or other recorded County parcel map. An Acre means 43,560 square feet of land. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means the expenses incurred by the Water District on behalf of IA No. 1 related to the determination of the amount of the levy of Annual Special Taxes; the collection of Annual Special Taxes including, but not limited to, the expenses of collecting delinquencies; the administration of the Bonds; the payment of salaries and benefits of any employee of the Water District whose employment duties are directly related to the administration of IA No. 1; and the costs otherwise incurred in order to carry out authorized purposes of IA No. 1. “Annual Special Tax” means any Special Tax actually levied in any Fiscal Year on any Assessor’s Parcel. “Apartment Property” means all Assessor’s Parcels of Residential Property on which one or more apartment units are constructed for rental by the general public, not for sale to an end user, and under common management. “Assessor” means the Assessor of the County. EXHIBIT C-1 April 10, 2020 C-1 2 Community Facilities District No. 2020-1 (Highland Hills) IA No. 1 East Valley Water District “Assessor's Parcel” means a Lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel number. “Assessor’s Parcel Map” means an official map of the County designating parcels by Assessor’s Parcel number. “Assigned Special Tax” means the Special Tax for each Land Use Class, as determined in accordance with Section 3 below. “Backup Special Tax” means the Special Tax amount applicable to each Assessor’s Parcel of Developed Property, as determined in accordance with Section 3.A (i) below. “Bonds” means any obligation of IA No. 1 to pay or repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, secured in whole or in part by the levy of Special Taxes. “Boundary Map” means that certain map entitled “Proposed Boundaries of Community Facilities District No. 2020-1 (Highland Hills) of East Valley Water District” recorded in the Official Records of the County that distinguishes the boundaries of IA No. 1 from the other two improvement areas. “Building Permit” means a building permit for the construction of one or more Residential Units within IA No. 1 issued by the City, or another public agency in the event the City no longer issues building permits. “Building Square Footage” means the square footage of usable area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, or similar area. The determination of Building Square Footage of a Residential Unit shall be determined by reference to the Building Permit(s) for such Residential Unit and/or other information as may demonstrate that the Building Square Footage is specified incorrectly on the Building Permit(s). “Calendar Year” means the period commencing January 1 of any year and ending the following December 31. “CFD Administrator” means an authorized representative of the Water District, or designee thereof, responsible for determining the Special Tax Requirement, for preparing the Annual Special Tax roll and calculating the Backup Special Tax. “CFD No. 2020-1” means Community Facilities District No. 2020-1 (Highland Hills) of the Water District. “City” means the City of San Bernardino, California. April 10, 2020 C-1 3 Community Facilities District No. 2020-1 (Highland Hills) IA No. 1 East Valley Water District “County” means the County of San Bernardino, California. “Debt Service” means for each Fiscal Year, the total amount of principal and interest payable on any Outstanding Bonds during the Calendar Year commencing on January 1 of such Fiscal Year. “Developed Property” means for each Fiscal Year, all Assessor’s Parcels of Taxable Property, exclusive of Assessor’s Parcels of Provisional Undeveloped Property, for which a Building Permit was issued prior to May 1 of the previous Fiscal Year. “Exempt Property” means Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section 8. “Final Subdivision Map” means a subdivision of property created by recordation of a final map or parcel map, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4200 et seq or lot line adjustment that creates individual lots or condominium units for which building permits may be issued without further subdivision. “Fiscal Year” means the period starting on July 1 and ending the following June 30. “General Manager” means the General Manager of the East Valley Water District or his/her designee. “Improvement Area No. 1” or “IA No. 1” means Improvement Area No. 1 of CFD No. 2020-1, as identified on the Boundary Map for CFD No. 2020-1, as in effect on the date of formation of IA No. 1, and as may thereafter be amended in accordance with the Act. “Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Class” means any of the classes listed in Table 1 under Section 3 below. “Lot” means an individual legal lot or condominium unit created by a Final Subdivision Map. “Maximum Special Tax” means the Maximum Special Tax, determined in accordance with Section 3 below, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property. “Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit(s) was issued for non-residential use. April 10, 2020 C-1 4 Community Facilities District No. 2020-1 (Highland Hills) IA No. 1 East Valley Water District “Outstanding Bonds” mean all Bonds, which are deemed to be outstanding under the Indenture. “Partial Prepayment Amount” means a prepayment of a portion of the Special Tax Obligation applicable to an Assessor’s Parcel of Taxable Property as set forth in Section 6.B below. “Proportionately” or “Proportionate” means for Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax, as applicable, per Acre is equal for all Assessor's Parcels of Undeveloped Property. The term “Proportionately” may similarly be applied to other categories of Taxable Property as described in Section 3 below. “Provisional Undeveloped Property” means all Assessor’s Parcels of property that would otherwise be classified as Exempt Property pursuant to the provisions of Section 8, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage as set forth in Section 8. “Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more Residential Units. “Residential Unit” means each separate residential dwelling unit that comprises an independent facility available for sale to an end user or rental separate from adjacent residential dwelling units. “Single Family Property” means all Assessor’s Parcels of Residential Property that are available for sale to an end user. “Single Family Unit” means a Residential Unit of Single Family Property. “Special Tax” means any special tax authorized to be levied within IA No. 1 pursuant to the Act and this Rate and Method of Apportionment. “Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Taxable Property to pay the Special Tax for the remaining life of IA No. 1. “Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on the Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) the costs April 10, 2020 C-1 5 Community Facilities District No. 2020-1 (Highland Hills) IA No. 1 East Valley Water District associated with the release of funds from an escrow account established in association with the Bonds; (vi) accumulate funds to pay directly for acquisition or construction of facilities provided that the inclusion of such amount does not cause an increase in the Special Tax to be levied on Undeveloped Property or Provisional Undeveloped Property, and (vii) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (viii) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. “State” means the State of California. “Taxable Property” means all of the Assessor's Parcels within the boundaries of IA No. 1, which are not exempt from the levy of the Special Tax pursuant to law or Section 8 below. “Trustee” means the trustee or fiscal agent under the Indenture. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property within the boundaries of IA No. 1 not classified as Developed Property or Provisional Undeveloped Property. “Water District” means the East Valley Water District, California. “Water District Board” means the Board of Directors of the East Valley Water District, acting as the legislative body of CFD No. 2020-1, or its designee. 2. LAND USE CLASSIFICATION Each Fiscal Year, beginning with Fiscal Year 2020/2021, each Assessor’s Parcel within the boundaries of IA No. 1 shall be classified as Taxable Property or Exempt Property. In addition, all Taxable Property within IA No. 1 shall be classified as Developed Property, Undeveloped Property or Provisional Undeveloped Property, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment determined pursuant to Sections 3 and 4 below. Furthermore, each Assessor’s Parcel of Developed Property which is a Residential Unit shall be classified as Single Family Property or Apartment Property and the Building Square Footage of each Single Family Unit or the Acreage for Apartment Property with each such Assessor’s Parcel shall be determined. In the event a Building Permit is issued for a Lot prior to May 1 of the previous Fiscal Year and an Assessor’s Parcel Number has not yet been assigned to such Lot for the current Fiscal Year, the applicable parent Assessor’s Parcel may be classified as both Developed Property and Undeveloped Property. In such an instance, the Special Taxes levied on such Assessor’s Parcel shall be the sum of the amount derived from the following (i) applying the Assigned Special Tax applicable to each Lot for which a Building Permit was issued prior to May 1 of the previous Fiscal Year and (ii) levying April 10, 2020 C-1 6 Community Facilities District No. 2020-1 (Highland Hills) IA No. 1 East Valley Water District the acreage allocable to such actual or planned Lots for which a Building Permit has not been issued prior to May 1 of the previous Fiscal Year as Undeveloped Property; the allocable acreage shall be computed on a pro-rata basis based on the relative number of remaining Lots without a Building Permit to the total number of Lots entitled to be developed on such parent Assessor’s Parcel. The total number of Lots entitled to be developed on the applicable Assessor’s Parcel shall be determined from the recorded subdivision map, condominium map, condominium plan, applicable site plan, plot plan, or other appropriate records kept by the City as reasonably determined by the CFD Administrator. Once classified as Developed Property, an Assessor’s Parcel may not be subsequently re-classified as Undeveloped Property or changed to Exempt Property without the Special Tax being paid off in full accordance with Section 6 below. 3. MAXIMUM SPECIAL TAX RATES A. Developed Property The Maximum Special Tax applicable to an Assessor’s Parcel classified as Developed Property in IA No. 1 for Fiscal Year 2020/2021 shall be the greater of (i) the Assigned Special Tax determined pursuant to Table 1 below or (ii) the amount derived by application of the Backup Special Tax. Table 1 IA No. 1 Assigned Special Tax Rates Fiscal Year 2020/2021 April 10, 2020 C-1 7 Community Facilities District No. 2020-1 (Highland Hills) IA No. 1 East Valley Water District Land Use Class Taxable Unit Building Square Footage Assigned Special Tax Single Family Unit 1 DU Less than 900 Sq. Ft. $1,280 per Residential Unit Single Family Unit 2 DU 900 to 1,100 Sq. Ft. $1,388 per Residential Unit Single Family Unit 3 DU 1,101 to 1,300 Sq. Ft. $1,497 per Residential Unit Single Family Unit 4 DU 1,301 to 1,500 Sq. Ft. $1,541 per Residential Unit Single Family Unit 5 DU 1,501 to 1,700 Sq. Ft. $1,606 per Residential Unit Single Family Unit 6 DU 1,701 to 1,900 Sq. Ft. $1,840 per Residential Unit Single Family Unit 7 DU 1,901 to 2,100 Sq. Ft. $1,927 per Residential Unit Single Family Unit 8 DU 2,101 to 2,300 Sq. Ft. $2,455 per Residential Unit Single Family Unit 9 DU 2,301 to 2,500 Sq. Ft. $2,528 per Residential Unit Single Family Unit 10 DU 2,501 to 2,700 Sq. Ft. $2,789 per Residential Unit Single Family Unit 11 DU 2,701 to 2,900 Sq. Ft. $2,862 per Residential Unit Single Family Unit 12 DU 2,901 to 3,100 Sq. Ft. $2,935 per Residential Unit Single Family Unit 13 DU 3,101 to 3,300 Sq. Ft. $3,214 per Residential Unit Single Family Unit 14 DU Greater than 3,300 Sq. Ft. $3,360 per Residential Unit Apartment Property 15 Acreage N/A $18,493 per Acre or portion thereof Each July 1, commencing July 1, 2021, the Assigned Special Tax for Developed Property shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year. B. Backup Special Tax and Undeveloped Property Maximum Special Tax The Backup Special Tax applicable to an Assessor’s Parcel classified as Developed Property or the Maximum Special Tax applicable to an Assessor’s Parcel of Undeveloped Property for Fiscal Year 2020/2021 shall be $19,354 per Acre or portion thereof. Each July 1, commencing July 1, 2021, the Backup Special Tax for Developed Property and the Maximum Special Tax for Undeveloped Property shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year. C. Provisional Undeveloped Property The Maximum Special Tax for Provisional Undeveloped Property for Fiscal Year 2020/2021 shall be $19,354 per Acre or portion thereof. April 10, 2020 C-1 8 Community Facilities District No. 2020-1 (Highland Hills) IA No. 1 East Valley Water District Each July 1, commencing July 1, 2021, the Maximum Special Tax for Provisional Undeveloped Property shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year. 4. METHOD OF APPORTIONMENT A. Special Tax For each Fiscal Year, commencing Fiscal Year 2020/2021, the CFD Administrator shall calculate the Annual Special Tax on all Taxable Property in accordance with the following steps: Step 1: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax as necessary to satisfy the Special Tax Requirement; Step 2: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped Property; Step 3: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to 100% of the Maximum Special Tax for each such Assessor's Parcel; and Step 4: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional Undeveloped Property at up to 100% of the Maximum Special Tax for Provisional Undeveloped Property. Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Developed Property for which an occupancy permit for private residential use has been issued be increased as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within IA No. 1 by more than 10% of the amount that would have been levied in the Fiscal Year is the absence of such delinquency or default, except for those Assessor’s Parcels of Developed Property whose owners are also delinquent or in default on their Special Tax payments for one or more other properties within IA No. 1. April 10, 2020 C-1 9 Community Facilities District No. 2020-1 (Highland Hills) IA No. 1 East Valley Water District 5. COLLECTON OF ANNUAL SPECIAL TAXES Collection of the Annual Special Tax shall be by the County in the same manner as ordinary ad valorem property taxes are collected and the Annual Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the Water District may provide for (i) other means of collecting the Annual Special Tax, including direct billings thereof to the property owners; and (ii) judicial foreclosure of delinquent Special Taxes to meet the financial obligations of IA No. 1. 6. PREPAYMENT OF SPECIAL TAX OBLIGATION Property owners may prepay and permanently satisfy the Special Tax Obligation by a cash settlement with the Water District as permitted under Government Code Section 53344. Prepayment is permitted only under the following conditions: The following definitions apply to this Section 6: “IA No. 1 Public Facilities Costs” means $8,169,950 in 2020 dollars, which shall increase by the Construction Inflation Index (as defined below) on July 1, 2021, and on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD Administrator as sufficient to acquire or construct the facilities to be financed under the authorized Mello-Roos financing program for IA No. 1, or (ii) shall be determined by the Water District concurrently with a covenant that it will not issue any more IA No. 1 Bonds (except refunding bonds) to be supported by Special Taxes. “Construction Fund” means the fund (regardless of its name) established pursuant to the Indenture to hold funds, which are currently available for expenditure to acquire or construct the facilities or pay fees. “Construction Inflation Index” means the annual percentage change in the Engineering News-Record Building Cost Index for the City of Los Angeles, measured as of the Calendar Year, which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the IA No. 1 Public Facilities Costs minus (i) costs previously paid from the Construction Fund to acquire or construct the facilities, (ii) monies currently on deposit in the Construction Fund, and (iii) monies currently on deposit in an escrow or other earmarked fund that are expected to be available to finance IA No. 1 Public Facilities Costs. “Outstanding Bonds” means all Previously Issued Bonds, which remain outstanding as of the first interest and/or principal payment date following the current Fiscal Year April 10, 2020 C-1 10 Community Facilities District No. 2020-1 (Highland Hills) IA No. 1 East Valley Water District excluding Bonds to be redeemed at a later date with proceeds of prior prepayments of Maximum Special Taxes. “Previously Issued Bonds” means all IA No. 1 Bonds that have been issued prior to the date of prepayment. A. Prepayment in Full The Special Tax Obligation applicable to an Assessor’s Parcel may be prepaid and the obligation of the Assessor’s Parcel to pay any Special Tax permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor’s Parcel only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Special Tax Obligation shall provide the CFD Administrator with written notice of intent to prepay and the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the Prepayment Amount (as defined below) for such Assessor’s Parcel within thirty (30) days of the request and may charge a reasonable fee for providing this service. Prepayment must be made more than sixty (60) days prior to any redemption date for the IA No. 1 Bonds to be redeemed with the proceeds of such prepaid Special Taxes, unless a shorter period is acceptable to the Trustee and the Water District. The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Prepayment Amount plus Defeasance Amount plus Prepayment Administrative Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows: April 10, 2020 C-1 11 Community Facilities District No. 2020-1 (Highland Hills) IA No. 1 East Valley Water District Paragraph No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel. 2. For an Assessor’s Parcel of Developed Property, determine the Maximum Special Tax. For an Assessor’s Parcel of Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit(s) which has already been issued for that Assessor’s Parcel. For an Assessor’s Parcel of Undeveloped Property for which a Building Permit has not been issued, compute the Maximum Special Tax for that Assessor’s Parcel. 3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the total estimated Maximum Special Tax for IA No. 1 based on the Developed Property Special Tax which could be levied in the current Fiscal Year on all expected development through build-out of IA No. 1 as determined by the CFD Administrator, excluding any Assessor’s Parcels for which the Special Tax Obligation has been prepaid. 4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the “Bond Redemption Amount”). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (expressed as a percentage), if any, on the Outstanding Bonds to be redeemed at the first available call date (the “Redemption Premium”). 6. Compute the current Future Facilities Costs. 7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the “Future Facilities Prepayment Amount”). 8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds. 9. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities Amount and the Prepayment Administrative Fees and Expenses from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. April 10, 2020 C-1 12 Community Facilities District No. 2020-1 (Highland Hills) IA No. 1 East Valley Water District 10. Take the amount computed pursuant to paragraph 8 and subtract the amount computed pursuant to paragraph 9 (the “Defeasance Amount”). 11. Verify the administrative fees and expenses of IA No. 1, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Prepayment Administrative Fees and Expenses”). 12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Indenture) on the prepayment date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”). No Reserve Fund Credit shall be granted if reserve funds are below 100% of the reserve requirement. 13. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the larger quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the “Capitalized Interest Credit”). 14. The Special Tax Obligation is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 10, and 11, less the amounts computed pursuant to paragraphs 12 and 13 (the “Prepayment Amount”). 15. From the Prepayment Amount, the sum of the amounts computed pursuant to paragraphs 4, 5, and 10, less the amounts computed pursuant to paragraphs 12, and 13 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make Debt Service payments. The amount computed pursuant to paragraph 7 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 11 shall be retained by IA No. 1. The Prepayment Amount may be sufficient to redeem an amount other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to redeem Bonds to be used with the next prepayment of Bonds. The CFD Administrator will confirm that all previously levied Special Taxes have been paid in full. With respect to any Assessor's Parcel that is prepaid in full, once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid, the Water District shall cause a suitable notice to be recorded in compliance with the Act, to indicate April 10, 2020 C-1 13 Community Facilities District No. 2020-1 (Highland Hills) IA No. 1 East Valley Water District the prepayment of Special Taxes and the release of the Special Tax lien on such Assessor’s Parcel, and the Special Tax Obligation of such Assessor's Parcel to pay the Special Tax shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Taxes less Administrative Expenses for each Fiscal Year that may be levied on Taxable Property, respectively, after the proposed prepayment is at least 1.1 times the annual Debt Service on all Outstanding Bonds. B. Partial Prepayment The Special Tax on an Assessor’s Parcel of Developed Property or for Undeveloped Property for which a Building Permit has been issued may be partially prepaid. The Partial Prepayment Amount shall be calculated as in Section 6.A.; except that a partial prepayment shall be calculated according to the following formula: PP = (PE – A) x F + A These terms have the following meaning: PP = the Partial Prepayment PE = the Prepayment Amount calculated according to Section 6.A. F = the percentage by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax. A= The Administrative Fees and Expenses from Section 6.A. The owner of any Assessor’s Parcel who desires such prepayment shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax, (ii) the percentage by which the Special Tax shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax for an Assessor’s Parcel within sixty (60) days of the request and may charge a reasonable fee for providing this service With respect to any Assessor’s Parcel that is partially prepaid, the Water District shall (i) distribute the funds remitted to it according to Section 6.A., and (ii) indicate in the records of IA No. 1 that there has been a partial prepayment of the Special Tax and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel pursuant to Section 3. Notwithstanding the foregoing, no partial prepayment shall be allowed unless the amount of Maximum Special Taxes A less Administrative Expenses for each Fiscal Year that may be levied on Taxable Property, respectively, after the proposed partial prepayment is at least 1.1 times the annual Debt Service on all Outstanding Bonds. April 10, 2020 C-1 14 Community Facilities District No. 2020-1 (Highland Hills) IA No. 1 East Valley Water District 7. TERM OF SPECIAL TAX The Annual Special Tax shall be levied for a period of thirty-five (35) Fiscal Years after the last series of Bonds has been issued, provided that the Special Tax shall not be levied later than Fiscal Year 2070/2071. 8. EXEMPTIONS The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels owned by the State of California, Federal or other local governments, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels developed or planned to be developed exclusively for any type of Non-Residential Property use, (iv) Assessor’s Parcels with public utility easement by the restriction or other restriction, as determined reasonably by the CFD Administrator, provided that no such classification would reduce the sum of all Taxable Property within IA No. 1 to less than 29.79 Acres. Assessor’s Parcels which cannot be classified as Exempt Property because such classification would reduce the sum of all Taxable Property in IA No. 1 to less than 29.79 Acres shall be classified as Provisional Undeveloped Property, and will continue to be subject to the Special Tax accordingly. Tax exempt status for this purpose of this paragraph will be assigned by the CFD Administrator in the chronological order in which property becomes eligible for classification as Exempt Property. If the use of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s Parcel is no longer classified as one of the uses set forth in the first paragraph of this Section 8 above that would make such Assessor’s Parcel eligible to be classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property. 9. APPEALS Any landowner who pays the Annual Special Tax and claims the amount of the Annual Special Tax levied on his or her Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such error not later than twelve (12) months after first having paid the first installment of the Annual Special Tax that is disputed. If following such consultation, the CFD Administrator determines that an error has occurred, the CFD Administrator may recommend changing the amount of the Annual Special Tax levied on such Assessor’s Parcel. If following such consultation and action, if any by the CFD Administrator, the landowner believes such error still exists, such person may file a written notice with the General Manager appealing the amount of the Annual Special Tax levied on such Assessor’s Parcel. Upon the receipt of such notice, the General Manager may establish such procedures as deemed necessary to undertake the review of any such appeal. The General Manager thereof shall interpret this Rate and Method of Apportionment and make determinations relative to the administration of the Annual Special Tax and any landowner appeals. The decision of the General Manager shall be final and binding as to all persons. April 10, 2020 C-2 1 Community Facilities District No. 2020-1 (Highland Hills) IA No. 2 East Valley Water District C OMMUNITY FACILITIES DISTRICT NO. 2020-1 (H IGHLAND HILLS) IMPROVEMENT AREA NO. 2 OF THE EAST VALLEY WATER DISTRICT RATE AND METHOD OF APPORTIONMENT A Special Tax shall be levied on all Taxable Property (as defined below) within the boundaries of Improvement Area No. 2 (“IA No. 2”) Community Facilities District No. 2020-1 (Highland Hills), (“CFD No. 2020-1”) of the East Valley Water District (“Water District”) and collected each Fiscal Year commencing in Fiscal Year 2020/2021 in an amount determined by the Water District Board (as defined below), through the application of this Rate and Method of Apportionment of the Special Tax to the extent and in the manner herein provided. 1. DEFINITIONS “Acreage” or “Acre” means the land area of an Assessor’s Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, parcel map, condominium plan, or other recorded County parcel map. An Acre means 43,560 square feet of land. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means the expenses incurred by the Water District on behalf of IA No. 2 related to the determination of the amount of the levy of Annual Special Taxes; the collection of Annual Special Taxes including, but not limited to, the expenses of collecting delinquencies; the administration of the Bonds; the payment of salaries and benefits of any employee of the Water District whose employment duties are directly related to the administration of IA No. 2; and the costs otherwise incurred in order to carry out authorized purposes of IA No. 2. “Annual Special Tax” means any Special Tax actually levied in any Fiscal Year on any Assessor’s Parcel. “Assessor” means the Assessor of the County. “Assessor's Parcel” means a Lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel number. “Assessor’s Parcel Map” means an official map of the County designating parcels by Assessor’s Parcel number. EXHIBIT C-2 April 10, 2020 C-2 2 Community Facilities District No. 2020-1 (Highland Hills) IA No. 2 East Valley Water District “Assigned Special Tax” means the Special Tax for each Land Use Class, as determined in accordance with Section 3 below. “Backup Special Tax” means the Special Tax amount applicable to each Assessor’s Parcel of Developed Property, as determined in accordance with Section 3.A (i) below. “Bonds” means any obligation of IA No. 2 to pay or repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, secured in whole or in part by the levy of Special Taxes. “Boundary Map” means that certain map entitled “Proposed Boundaries of Community Facilities District No. 2020-1 (Highland Hills) of East Valley Water District” recorded in the Official Records of the County that distinguishes the boundaries of IA No. 2 from the other two improvement areas. “Building Permit” means a building permit for the construction of one or more Residential Units within IA No. 2 issued by the City, or another public agency in the event the City no longer issues building permits. “Building Square Footage” means the square footage of usable area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, or similar area. The determination of Building Square Footage of a Residential Unit shall be determined by reference to the Building Permit(s) for such Residential Unit and/or other information as may demonstrate that the Building Square Footage is specified incorrectly on the Building Permit(s). “Calendar Year” means the period commencing January 1 of any year and ending the following December 31. “CFD Administrator” means an authorized representative of the Water District, or designee thereof, responsible for determining the Special Tax Requirement, for preparing the Annual Special Tax roll and calculating the Backup Special Tax. “CFD No. 2020-1” means Community Facilities District No. 2020-1 (Highland Hills) of the Water District. “City” means the City of San Bernardino, California. “County” means the County of San Bernardino, California. “Debt Service” means for each Fiscal Year, the total amount of principal and interest payable on any Outstanding Bonds during the Calendar Year commencing on January 1 of such Fiscal Year. April 10, 2020 C-2 3 Community Facilities District No. 2020-1 (Highland Hills) IA No. 2 East Valley Water District “Developed Property” means for each Fiscal Year, all Assessor’s Parcels of Taxable Property, exclusive of Assessor’s Parcels of Provisional Undeveloped Property, for which a Building Permit was issued prior to May 1 of the previous Fiscal Year. “Exempt Property” means Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section 8. “Final Subdivision Map” means a subdivision of property created by recordation of a final map or parcel map, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4200 et seq or lot line adjustment that creates individual lots or condominium units for which building permits may be issued without further subdivision. “Fiscal Year” means the period starting on July 1 and ending the following June 30. “General Manager” means the General Manager of the East Valley Water District or his/her designee. “Improvement Area No. 2” or “IA No. 2” means Improvement Area No. 1 of CFD No. 2020-1, as identified on the Boundary Map for CFD No. 2020-1, as in effect on the date of formation of IA No. 2, and as may thereafter be amended in accordance with the Act. “Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Class” means any of the classes listed in Table 1 under Section 3 below. “Lot” means an individual legal lot or condominium unit created by a Final Subdivision Map. “Maximum Special Tax” means the Maximum Special Tax, determined in accordance with Section 3 below, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property. “Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit(s) was issued for non-residential use. “Outstanding Bonds” mean all Bonds, which are deemed to be outstanding under the Indenture. April 10, 2020 C-2 4 Community Facilities District No. 2020-1 (Highland Hills) IA No. 2 East Valley Water District “Partial Prepayment Amount” means a prepayment of a portion of the Special Tax Obligation applicable to an Assessor’s Parcel of Taxable Property as set forth in Section 6.B below. “Proportionately” or “Proportionate” means for Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax, as applicable, per Acre is equal for all Assessor's Parcels of Undeveloped Property. The term “Proportionately” may similarly be applied to other categories of Taxable Property as described in Section 3 below. “Provisional Undeveloped Property” means all Assessor’s Parcels of property that would otherwise be classified as Exempt Property pursuant to the provisions of Section 8, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage as set forth in Section 8. “Residential Unit” means each separate residential dwelling unit that comprises an independent facility available for sale to an end user or rental separate from adjacent residential dwelling units. “Special Tax” means any special tax authorized to be levied within IA No. 2 pursuant to the Act and this Rate and Method of Apportionment. “Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Taxable Property to pay the Special Tax for the remaining life of IA No. 2. “Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on the Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) the costs associated with the release of funds from an escrow account established in association with the Bonds; (vi) accumulate funds to pay directly for acquisition or construction of facilities provided that the inclusion of such amount does not cause an increase in the Special Tax to be levied on Undeveloped Property or Provisional Undeveloped Property, and (vii) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (viii) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. “State” means the State of California. April 10, 2020 C-2 5 Community Facilities District No. 2020-1 (Highland Hills) IA No. 2 East Valley Water District “Taxable Property” means all of the Assessor's Parcels within the boundaries of IA No. 2, which are not exempt from the levy of the Special Tax pursuant to law or Section 8 below. “Trustee” means the trustee or fiscal agent under the Indenture. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property within the boundaries of IA No. 2 not classified as Developed Property or Provisional Undeveloped Property. “Water District” means the East Valley Water District, California. “Water District Board” means the Board of Directors of the East Valley Water District, acting as the legislative body of CFD No. 2020-1, or its designee. 2. LAND USE CLASSIFICATION Each Fiscal Year, beginning with Fiscal Year 2020/2021, each Assessor’s Parcel within the boundaries of IA No. 2 shall be classified as Taxable Property or Exempt Property. In addition, all Taxable Property within IA No. 2 shall be classified as Developed Property, Undeveloped Property or Provisional Undeveloped Property, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment determined pursuant to Sections 3 and 4 below. Furthermore, each Assessor’s Parcel of Developed Property which is a Residential Unit shall be classified to a Land Use Class based on its Building Square Footage. In the event a Building Permit is issued for a Lot prior to May 1 of the previous Fiscal Year and an Assessor’s Parcel Number has not yet been assigned to such Lot for the current Fiscal Year, the applicable parent Assessor’s Parcel may be classified as both Developed Property and Undeveloped Property. In such an instance, the Special Taxes levied on such Assessor’s Parcel shall be the sum of the amount derived from the following (i) applying the Assigned Special Tax applicable to each Lot for which a Building Permit was issued prior to May 1 of the previous Fiscal Year and (ii) levying the acreage allocable to such actual or planned Lots for which a Building Permit has not been issued prior to May 1 of the previous Fiscal Year as Undeveloped Property; the allocable acreage shall be computed on a pro-rata basis based on the relative number of remaining Lots without a Building Permit to the total number of Lots entitled to be developed on such parent Assessor’s Parcel. The total number of Lots entitled to be developed on the applicable Assessor’s Parcel shall be determined from the recorded subdivision map, condominium map, condominium plan, applicable site plan, plot plan, or other appropriate records kept by the City as reasonably determined by the CFD Administrator. Once classified as Developed Property, an Assessor’s Parcel may not be subsequently re-classified as Undeveloped Property or changed to Exempt Property without the Special Tax being paid off in full accordance with Section 6 below. April 10, 2020 C-2 6 Community Facilities District No. 2020-1 (Highland Hills) IA No. 2 East Valley Water District 3. MAXIMUM SPECIAL TAX RATES A. Developed Property The Maximum Special Tax applicable to an Assessor’s Parcel classified as Developed Property in IA No. 2 for Fiscal Year 2020/2021 shall be the greater of (i) the Assigned Special Tax determined pursuant to Table 1 below or (ii) the amount derived by application of the Backup Special Tax. Table 1 IA No. 2 Assigned Special Tax Rates Fiscal Year 2020/2021 Land Use Class Taxable Unit Building Square Footage Assigned Special Tax 1 DU Less than 900 Sq. Ft. $1,280 per Residential Unit 2 DU 900 to 1,100 Sq. Ft. $1,388 per Residential Unit 3 DU 1,101 to 1,300 Sq. Ft. $1,497 per Residential Unit 4 DU 1,301 to 1,500 Sq. Ft. $1,541 per Residential Unit 5 DU 1,501 to 1,700 Sq. Ft. $1,606 per Residential Unit 6 DU 1,701 to 1,900 Sq. Ft. $1,840 per Residential Unit 7 DU 1,901 to 2,100 Sq. Ft. $1,927 per Residential Unit 8 DU 2,101 to 2,300 Sq. Ft. $2,455 per Residential Unit 9 DU 2,301 to 2,500 Sq. Ft. $2,528 per Residential Unit 10 DU 2,501 to 2,700 Sq. Ft. $2,789 per Residential Unit 11 DU 2,701 to 2,900 Sq. Ft. $2,862 per Residential Unit 12 DU 2,901 to 3,100 Sq. Ft. $2,935 per Residential Unit 13 DU 3,101 to 3,300 Sq. Ft. $3,214 per Residential Unit 14 DU Greater than 3,300 Sq. Ft. $3,360 per Residential Unit Each July 1, commencing July 1, 2021, the Assigned Special Tax for Developed Property shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year. B. Backup Special Tax and Undeveloped Property Maximum Special Tax The Backup Special Tax applicable to an Assessor’s Parcel classified as Developed Property or the Maximum Special Tax applicable to an Assessor’s Parcel of Undeveloped Property for Fiscal Year 2020/2021 shall be $14,548 per Acre or portion thereof. April 10, 2020 C-2 7 Community Facilities District No. 2020-1 (Highland Hills) IA No. 2 East Valley Water District Each July 1, commencing July 1, 2021, the Backup Special Tax for Developed Property and the Maximum Special Tax for Undeveloped Property shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year. C. Provisional Undeveloped Property The Maximum Special Tax for Provisional Undeveloped Property for Fiscal Year 2020/2021 shall be $14,548 per Acre or portion thereof. Each July 1, commencing July 1, 2021, the Maximum Special Tax for Provisional Undeveloped Property shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year. 4. METHOD OF APPORTIONMENT A. Special Tax For each Fiscal Year, commencing Fiscal Year 2020/2021, the CFD Administrator shall calculate the Annual Special Tax on all Taxable Property in accordance with the following steps: Step 1: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax as necessary to satisfy the Special Tax Requirement; Step 2: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped Property; Step 3: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to 100% of the Maximum Special Tax for each such Assessor's Parcel; and Step 4: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional April 10, 2020 C-2 8 Community Facilities District No. 2020-1 (Highland Hills) IA No. 2 East Valley Water District Undeveloped Property at up to 100% of the Maximum Special Tax for Provisional Undeveloped Property. Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Developed Property for which an occupancy permit for private residential use has been issued be increased as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within IA No. 2 by more than 10% of the amount that would have been levied in the Fiscal Year is the absence of such delinquency or default, except for those Assessor’s Parcels of Developed Property whose owners are also delinquent or in default on their Special Tax payments for one or more other properties within IA No. 2. 5. COLLECTON OF ANNUAL SPECIAL TAXES Collection of the Annual Special Tax shall be by the County in the same manner as ordinary ad valorem property taxes are collected and the Annual Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the Water District may provide for (i) other means of collecting the Annual Special Tax, including direct billings thereof to the property owners; and (ii) judicial foreclosure of delinquent Special Taxes to meet the financial obligations of IA No. 2. 6. PREPAYMENT OF SPECIAL TAX OBLIGATION Property owners may prepay and permanently satisfy the Special Tax Obligation by a cash settlement with the Water District as permitted under Government Code Section 53344. Prepayment is permitted only under the following conditions: The following definitions apply to this Section 6: “IA No. 2 Public Facilities Costs” means $2,581,054 in 2020 dollars, which shall increase by the Construction Inflation Index (as defined below) on July 1, 2021, and on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD Administrator as sufficient to acquire or construct the facilities to be financed under the authorized Mello-Roos financing program for IA No. 2, or (ii) shall be determined by the Water District concurrently with a covenant that it will not issue any more IA No. 2 Bonds (except refunding bonds) to be supported by Special Taxes. “Construction Fund” means the fund (regardless of its name) established pursuant to the Indenture to hold funds, which are currently available for expenditure to acquire or construct the facilities or pay fees. “Construction Inflation Index” means the annual percentage change in the Engineering News-Record Building Cost Index for the City of Los Angeles, measured as of the Calendar Year, which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as April 10, 2020 C-2 9 Community Facilities District No. 2020-1 (Highland Hills) IA No. 2 East Valley Water District determined by the CFD Administrator that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the IA No. 2 Public Facilities Costs minus (i) costs previously paid from the Construction Fund to acquire or construct the facilities, (ii) monies currently on deposit in the Construction Fund, and (iii) monies currently on deposit in an escrow or other earmarked fund that are expected to be available to finance IA No. 2 Public Facilities Costs. “Outstanding Bonds” means all Previously Issued Bonds, which remain outstanding as of the first interest and/or principal payment date following the current Fiscal Year excluding Bonds to be redeemed at a later date with proceeds of prior prepayments of Maximum Special Taxes. “Previously Issued Bonds” means all IA No. 2 Bonds that have been issued prior to the date of prepayment. A. Prepayment in Full The Special Tax Obligation applicable to an Assessor’s Parcel may be prepaid and the obligation of the Assessor’s Parcel to pay any Special Tax permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor’s Parcel only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Special Tax Obligation shall provide the CFD Administrator with written notice of intent to prepay and the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the Prepayment Amount (as defined below) for such Assessor’s Parcel within thirty (30) days of the request and may charge a reasonable fee for providing this service. Prepayment must be made more than sixty (60) days prior to any redemption date for the IA No. 2 Bonds to be redeemed with the proceeds of such prepaid Special Taxes, unless a shorter period is acceptable to the Trustee and the Water District. The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Prepayment Amount plus Defeasance Amount plus Prepayment Administrative Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined below) April 10, 2020 C-2 10 Community Facilities District No. 2020-1 (Highland Hills) IA No. 2 East Valley Water District shall be calculated as follows: Paragraph No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel. 2. For an Assessor’s Parcel of Developed Property, determine the Maximum Special Tax. For an Assessor’s Parcel of Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit(s) which has already been issued for that Assessor’s Parcel. For an Assessor’s Parcel of Undeveloped Property for which a Building Permit has not been issued, compute the Maximum Special Tax for that Assessor’s Parcel. 3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the total estimated Maximum Special Tax for IA No. 2 based on the Developed Property Special Tax which could be levied in the current Fiscal Year on all expected development through build-out of IA No. 2 as determined by the CFD Administrator, excluding any Assessor’s Parcels for which the Special Tax Obligation has been prepaid. 4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the “Bond Redemption Amount”). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (expressed as a percentage), if any, on the Outstanding Bonds to be redeemed at the first available call date (the “Redemption Premium”). 6. Compute the current Future Facilities Costs. 7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the “Future Facilities Prepayment Amount”). 8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds. 9. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities April 10, 2020 C-2 11 Community Facilities District No. 2020-1 (Highland Hills) IA No. 2 East Valley Water District Amount and the Prepayment Administrative Fees and Expenses from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. 10. Take the amount computed pursuant to paragraph 8 and subtract the amount computed pursuant to paragraph 9 (the “Defeasance Amount”). 11. Verify the administrative fees and expenses of IA No. 2, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Prepayment Administrative Fees and Expenses”). 12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Indenture) on the prepayment date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”). No Reserve Fund Credit shall be granted if reserve funds are below 100% of the reserve requirement. 13. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the larger quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the “Capitalized Interest Credit”). 14. The Special Tax Obligation is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 10, and 11, less the amounts computed pursuant to paragraphs 12 and 13 (the “Prepayment Amount”). 15. From the Prepayment Amount, the sum of the amounts computed pursuant to paragraphs 4, 5, and 10, less the amounts computed pursuant to paragraphs 12, and 13 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make Debt Service payments. The amount computed pursuant to paragraph 7 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 11 shall be retained by IA No. 2. The Prepayment Amount may be sufficient to redeem an amount other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to redeem Bonds to be used with the next prepayment of Bonds. The CFD Administrator will confirm that all previously levied Special April 10, 2020 C-2 12 Community Facilities District No. 2020-1 (Highland Hills) IA No. 2 East Valley Water District Taxes have been paid in full. With respect to any Assessor's Parcel that is prepaid in full, once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid, the Water District shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Taxes and the release of the Special Tax lien on such Assessor’s Parcel, and the Special Tax Obligation of such Assessor's Parcel to pay the Special Tax shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Taxes less Administrative Expenses for each Fiscal Year that may be levied on Taxable Property, respectively, after the proposed prepayment is at least 1.1 times the annual Debt Service on all Outstanding Bonds. B. Partial Prepayment The Special Tax on an Assessor’s Parcel of Developed Property or for Undeveloped Property for which a Building Permit has been issued may be partially prepaid. The Partial Prepayment Amount shall be calculated as in Section 6.A.; except that a partial prepayment shall be calculated according to the following formula: PP = (PE – A) x F + A These terms have the following meaning: PP = the Partial Prepayment PE = the Prepayment Amount calculated according to Section 6.A. F = the percentage by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax. A= The Administrative Fees and Expenses from Section 6.A. The owner of any Assessor’s Parcel who desires such prepayment shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax, (ii) the percentage by which the Special Tax shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax for an Assessor’s Parcel within sixty (60) days of the request and may charge a reasonable fee for providing this service With respect to any Assessor’s Parcel that is partially prepaid, the Water District shall (i) distribute the funds remitted to it according to Section 6.A., and (ii) indicate in the records of IA No. 2 that there has been a partial prepayment of the Special Tax and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel pursuant to Section 3. April 10, 2020 C-2 13 Community Facilities District No. 2020-1 (Highland Hills) IA No. 2 East Valley Water District Notwithstanding the foregoing, no partial prepayment shall be allowed unless the amount of Maximum Special Taxes A less Administrative Expenses for each Fiscal Year that may be levied on Taxable Property, respectively, after the proposed partial prepayment is at least 1.1 times the annual Debt Service on all Outstanding Bonds. 7. TERM OF SPECIAL TAX The Annual Special Tax shall be levied for a period of thirty-five (35) Fiscal Years after the last series of Bonds has been issued, provided that the Special Tax shall not be levied later than Fiscal Year 2070/2071. 8. EXEMPTIONS The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels owned by the State of California, Federal or other local governments, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels developed or planned to be developed exclusively for any type of Non-Residential Property use, (iv) Assessor’s Parcels with public utility easement by the restriction or other restriction, as determined reasonably by the CFD Administrator, provided that no such classification would reduce the sum of all Taxable Property within IA No. 2 to less than 14.48 Acres. Assessor’s Parcels which cannot be classified as Exempt Property because such classification would reduce the sum of all Taxable Property in IA No. 2 to less than 14.48 Acres shall be classified as Provisional Undeveloped Property, and will continue to be subject to the Special Tax accordingly. Tax exempt status for this purpose of this paragraph will be assigned by the CFD Administrator in the chronological order in which property becomes eligible for classification as Exempt Property. If the use of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s Parcel is no longer classified as one of the uses set forth in the first paragraph of this Section 8 above that would make such Assessor’s Parcel eligible to be classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property. 9. APPEALS Any landowner who pays the Annual Special Tax and claims the amount of the Annual Special Tax levied on his or her Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such error not later than twelve (12) months after first having paid the first installment of the Annual Special Tax that is disputed. If following such consultation, the CFD Administrator determines that an error has occurred, the CFD Administrator may recommend changing the amount of the Annual Special Tax levied on such Assessor’s Parcel. If following such consultation and action, if any by the CFD Administrator, the landowner believes such error still exists, such person may file a written notice with the General Manager appealing the amount of the Annual Special Tax levied on such Assessor’s Parcel. Upon the receipt of such notice, the April 10, 2020 C-2 14 Community Facilities District No. 2020-1 (Highland Hills) IA No. 2 East Valley Water District General Manager may establish such procedures as deemed necessary to undertake the review of any such appeal. The General Manager thereof shall interpret this Rate and Method of Apportionment and make determinations relative to the administration of the Annual Special Tax and any landowner appeals. The decision of the General Manager shall be final and binding as to all persons. April 10, 2020 C-3 1 Community Facilities District No. 2020-1 (Highland Hills) IA No. 3 East Valley Water District COM MUNITY FACILITIES DISTRICT NO. 2020-1 (HIG HLAND HILLS) IMPROVEMENT AREA NO. 3 OF THE EAST VALLEY WATER DISTRICT RATE AND METHOD OF APPORTIONMENT A Special Tax shall be levied on all Taxable Property (as defined below) within the boundaries of Improvement Area No. 3 (“IA No. 3”) Community Facilities District No. 2020-1 (Highland Hills), (“CFD No. 2020-1”) of the East Valley Water District (“Water District”) and collected each Fiscal Year commencing in Fiscal Year 2020/2021 in an amount determined by the Water District Board (as defined below), through the application of this Rate and Method of Apportionment of the Special Tax to the extent and in the manner herein provided. 1. DEFINITIONS “Acreage” or “Acre” means the land area of an Assessor’s Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, parcel map, condominium plan, or other recorded County parcel map. An Acre means 43,560 square feet of land. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means the expenses incurred by the Water District on behalf of IA No. 3 related to the determination of the amount of the levy of Annual Special Taxes; the collection of Annual Special Taxes including, but not limited to, the expenses of collecting delinquencies; the administration of the Bonds; the payment of salaries and benefits of any employee of the Water District whose employment duties are directly related to the administration of IA No. 3; and the costs otherwise incurred in order to carry out authorized purposes of IA No. 3. “Annual Special Tax” means any Special Tax actually levied in any Fiscal Year on any Assessor’s Parcel. “Assessor” means the Assessor of the County. “Assessor's Parcel” means a Lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel number. “Assessor’s Parcel Map” means an official map of the County designating parcels by Assessor’s Parcel number. EXHIBIT C-3 April 10, 2020 C-3 2 Community Facilities District No. 2020-1 (Highland Hills) IA No. 3 East Valley Water District “Assigned Special Tax” means the Special Tax for each Land Use Class, as determined in accordance with Section 3 below. “Backup Special Tax” means the Special Tax amount applicable to each Assessor’s Parcel of Developed Property, as determined in accordance with Section 3.A (i) below. “Bonds” means any obligation of IA No. 3 to pay or repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, secured in whole or in part by the levy of Special Taxes. “Boundary Map” means that certain map entitled “Proposed Boundaries of Community Facilities District No. 2020-1 (Highland Hills) of East Valley Water District” recorded in the Official Records of the County that distinguishes the boundaries of IA No. 3 from the other two improvement areas. “Building Permit” means a building permit for the construction of one or more Residential Units within IA No. 3 issued by the City, or another public agency in the event the City no longer issues building permits. “Building Square Footage” means the square footage of usable area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, or similar area. The determination of Building Square Footage of a Residential Unit shall be determined by reference to the Building Permit(s) for such Residential Unit and/or other information as may demonstrate that the Building Square Footage is specified incorrectly on the Building Permit(s). “Calendar Year” means the period commencing January 1 of any year and ending the following December 31. “CFD Administrator” means an authorized representative of the Water District, or designee thereof, responsible for determining the Special Tax Requirement, for preparing the Annual Special Tax roll and calculating the Backup Special Tax. “CFD No. 2020-1” means Community Facilities District No. 2020-1 (Highland Hills) of the Water District. “City” means the City of San Bernardino, California. “County” means the County of San Bernardino, California. “Debt Service” means for each Fiscal Year, the total amount of principal and interest payable on any Outstanding Bonds during the Calendar Year commencing on January 1 of such Fiscal Year. April 10, 2020 C-3 3 Community Facilities District No. 2020-1 (Highland Hills) IA No. 3 East Valley Water District “Developed Property” means for each Fiscal Year, all Assessor’s Parcels of Taxable Property, exclusive of Assessor’s Parcels of Provisional Undeveloped Property, for which a Building Permit was issued prior to May 1 of the previous Fiscal Year. “Exempt Property” means Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section 8. “Final Subdivision Map” means a subdivision of property created by recordation of a final map or parcel map, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4200 et seq or lot line adjustment that creates individual lots or condominium units for which building permits may be issued without further subdivision. “Fiscal Year” means the period starting on July 1 and ending the following June 30. “General Manager” means the General Manager of the East Valley Water District or his/her designee. “Improvement Area No. 3” or “IA No. 3” means Improvement Area No. 1 of CFD No. 2020-1, as identified on the Boundary Map for CFD No. 2020-1, as in effect on the date of formation of IA No. 3, and as may thereafter be amended in accordance with the Act. “Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Class” means any of the classes listed in Table 1 under Section 3 below. “Lot” means an individual legal lot or condominium unit created by a Final Subdivision Map. “Maximum Special Tax” means the Maximum Special Tax, determined in accordance with Section 3 below, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property. “Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit(s) was issued for non-residential use. “Outstanding Bonds” mean all Bonds, which are deemed to be outstanding under the Indenture. April 10, 2020 C-3 4 Community Facilities District No. 2020-1 (Highland Hills) IA No. 3 East Valley Water District “Partial Prepayment Amount” means a prepayment of a portion of the Special Tax Obligation applicable to an Assessor’s Parcel of Taxable Property as set forth in Section 6.B below. “Proportionately” or “Proportionate” means for Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax, as applicable, per Acre is equal for all Assessor's Parcels of Undeveloped Property. The term “Proportionately” may similarly be applied to other categories of Taxable Property as described in Section 3 below. “Provisional Undeveloped Property” means all Assessor’s Parcels of property that would otherwise be classified as Exempt Property pursuant to the provisions of Section 8, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage as set forth in Section 8. “Residential Unit” means each separate residential dwelling unit that comprises an independent facility available for sale to an end user or rental separate from adjacent residential dwelling units. “Special Tax” means any special tax authorized to be levied within IA No. 3 pursuant to the Act and this Rate and Method of Apportionment. “Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Taxable Property to pay the Special Tax for the remaining life of IA No. 3. “Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on the Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) the costs associated with the release of funds from an escrow account established in association with the Bonds; (vi) accumulate funds to pay directly for acquisition or construction of facilities provided that the inclusion of such amount does not cause an increase in the Special Tax to be levied on Undeveloped Property or Provisional Undeveloped Property, and (vii) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (viii) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. “State” means the State of California. April 10, 2020 C-3 5 Community Facilities District No. 2020-1 (Highland Hills) IA No. 3 East Valley Water District “Taxable Property” means all of the Assessor's Parcels within the boundaries of IA No. 3, which are not exempt from the levy of the Special Tax pursuant to law or Section 8 below. “Trustee” means the trustee or fiscal agent under the Indenture. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property within the boundaries of IA No. 3 not classified as Developed Property or Provisional Undeveloped Property. “Water District” means the East Valley Water District, California. “Water District Board” means the Board of Directors of the East Valley Water District, acting as the legislative body of CFD No. 2020-1, or its designee. 2. LAND USE CLASSIFICATION Each Fiscal Year, beginning with Fiscal Year 2020/2021, each Assessor’s Parcel within the boundaries of IA No. 3 shall be classified as Taxable Property or Exempt Property. In addition, all Taxable Property within IA No. 3 shall be classified as Developed Property, Undeveloped Property or Provisional Undeveloped Property, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment determined pursuant to Sections 3 and 4 below. Furthermore, each Assessor’s Parcel of Developed Property which is a Residential Unit shall be classified to a Land Use Class based on its Building Square Footage. In the event a Building Permit is issued for a Lot prior to May 1 of the previous Fiscal Year and an Assessor’s Parcel Number has not yet been assigned to such Lot for the current Fiscal Year, the applicable parent Assessor’s Parcel may be classified as both Developed Property and Undeveloped Property. In such an instance, the Special Taxes levied on such Assessor’s Parcel shall be the sum of the amount derived from the following (i) applying the Assigned Special Tax applicable to each Lot for which a Building Permit was issued prior to May 1 of the previous Fiscal Year and (ii) levying the acreage allocable to such actual or planned Lots for which a Building Permit has not been issued prior to May 1 of the previous Fiscal Year as Undeveloped Property; the allocable acreage shall be computed on a pro-rata basis based on the relative number of remaining Lots without a Building Permit to the total number of Lots entitled to be developed on such parent Assessor’s Parcel. The total number of Lots entitled to be developed on the applicable Assessor’s Parcel shall be determined from the recorded subdivision map, condominium map, condominium plan, applicable site plan, plot plan, or other appropriate records kept by the City as reasonably determined by the CFD Administrator. Once classified as Developed Property, an Assessor’s Parcel may not be subsequently re-classified as Undeveloped Property or changed to Exempt Property without the Special Tax being paid off in full accordance with Section 6 below. April 10, 2020 C-3 6 Community Facilities District No. 2020-1 (Highland Hills) IA No. 3 East Valley Water District 3. MAXIMUM SPECIAL TAX RATES A. Developed Property The Maximum Special Tax applicable to an Assessor’s Parcel classified as Developed Property in IA No. 3 for Fiscal Year 2020/2021 shall be the greater of (i) the Assigned Special Tax determined pursuant to Table 1 below or (ii) the amount derived by application of the Backup Special Tax. Table 1 IA No. 3 Assigned Special Tax Rates Fiscal Year 2020/2021 Land Use Class Taxable Unit Building Square Footage Assigned Special Tax 1 DU Less than 900 Sq. Ft. $1,280 per Residential Unit 2 DU 900 to 1,100 Sq. Ft. $1,388 per Residential Unit 3 DU 1,101 to 1,300 Sq. Ft. $1,497 per Residential Unit 4 DU 1,301 to 1,500 Sq. Ft. $1,541 per Residential Unit 5 DU 1,501 to 1,700 Sq. Ft. $1,606 per Residential Unit 6 DU 1,701 to 1,900 Sq. Ft. $1,840 per Residential Unit 7 DU 1,901 to 2,100 Sq. Ft. $1,927 per Residential Unit 8 DU 2,101 to 2,300 Sq. Ft. $2,455 per Residential Unit 9 DU 2,301 to 2,500 Sq. Ft. $2,528 per Residential Unit 10 DU 2,501 to 2,700 Sq. Ft. $2,789 per Residential Unit 11 DU 2,701 to 2,900 Sq. Ft. $2,862 per Residential Unit 12 DU 2,901 to 3,100 Sq. Ft. $2,935 per Residential Unit 13 DU 3,101 to 3,300 Sq. Ft. $3,214 per Residential Unit 14 DU Greater than 3,300 Sq. Ft. $3,360 per Residential Unit Each July 1, commencing July 1, 2021, the Assigned Special Tax for Developed Property shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year. B. Backup Special Tax and Undeveloped Property Maximum Special Tax The Backup Special Tax applicable to an Assessor’s Parcel classified as Developed Property or the Maximum Special Tax applicable to an Assessor’s Parcel of Undeveloped Property for Fiscal Year 2020/2021 shall be $11,484 per Acre or portion thereof. April 10, 2020 C-3 7 Community Facilities District No. 2020-1 (Highland Hills) IA No. 3 East Valley Water District Each July 1, commencing July 1, 2021, the Backup Special Tax for Developed Property and the Maximum Special Tax for Undeveloped Property shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year. C. Provisional Undeveloped Property The Maximum Special Tax for Provisional Undeveloped Property for Fiscal Year 2020/2021 shall be $11,484 per Acre or portion thereof. Each July 1, commencing July 1, 2021, the Maximum Special Tax for Provisional Undeveloped Property shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year. 4. METHOD OF APPORTIONMENT A. Special Tax For each Fiscal Year, commencing Fiscal Year 2020/2021, the CFD Administrator shall calculate the Annual Special Tax on all Taxable Property in accordance with the following steps: Step 1: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax as necessary to satisfy the Special Tax Requirement; Step 2: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped Property; Step 3: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to 100% of the Maximum Special Tax for each such Assessor's Parcel; and Step 4: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional April 10, 2020 C-3 8 Community Facilities District No. 2020-1 (Highland Hills) IA No. 3 East Valley Water District Undeveloped Property at up to 100% of the Maximum Special Tax for Provisional Undeveloped Property. Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Developed Property for which an occupancy permit for private residential use has been issued be increased as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within IA No. 3 by more than 10% of the amount that would have been levied in the Fiscal Year is the absence of such delinquency or default, except for those Assessor’s Parcels of Developed Property whose owners are also delinquent or in default on their Special Tax payments for one or more other properties within IA No. 3. 5. COLLECTON OF ANNUAL SPECIAL TAXES Collection of the Annual Special Tax shall be by the County in the same manner as ordinary ad valorem property taxes are collected and the Annual Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the Water District may provide for (i) other means of collecting the Annual Special Tax, including direct billings thereof to the property owners; and (ii) judicial foreclosure of delinquent Special Taxes to meet the financial obligations of IA No. 3. 6. PREPAYMENT OF SPECIAL TAX OBLIGATION Property owners may prepay and permanently satisfy the Special Tax Obligation by a cash settlement with the Water District as permitted under Government Code Section 53344. Prepayment is permitted only under the following conditions: The following definitions apply to this Section 6: “IA No. 3 Public Facilities Costs” means $5,345,535 in 2020 dollars, which shall increase by the Construction Inflation Index (as defined below) on July 1, 2021, and on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD Administrator as sufficient to acquire or construct the facilities to be financed under the authorized Mello-Roos financing program for IA No. 3, or (ii) shall be determined by the Water District concurrently with a covenant that it will not issue any more IA No. 3 Bonds (except refunding bonds) to be supported by Special Taxes. “Construction Fund” means the fund (regardless of its name) established pursuant to the Indenture to hold funds, which are currently available for expenditure to acquire or construct the facilities or pay fees. “Construction Inflation Index” means the annual percentage change in the Engineering News-Record Building Cost Index for the City of Los Angeles, measured as of the Calendar Year, which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as April 10, 2020 C-3 9 Community Facilities District No. 2020-1 (Highland Hills) IA No. 3 East Valley Water District determined by the CFD Administrator that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the IA No. 3 Public Facilities Costs minus (i) costs previously paid from the Construction Fund to acquire or construct the facilities, (ii) monies currently on deposit in the Construction Fund, and (iii) monies currently on deposit in an escrow or other earmarked fund that are expected to be available to finance IA No. 3 Public Facilities Costs. “Outstanding Bonds” means all Previously Issued Bonds, which remain outstanding as of the first interest and/or principal payment date following the current Fiscal Year excluding Bonds to be redeemed at a later date with proceeds of prior prepayments of Maximum Special Taxes. “Previously Issued Bonds” means all IA No. 3 Bonds that have been issued prior to the date of prepayment. A. Prepayment in Full The Special Tax Obligation applicable to an Assessor’s Parcel may be prepaid and the obligation of the Assessor’s Parcel to pay any Special Tax permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor’s Parcel only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Special Tax Obligation shall provide the CFD Administrator with written notice of intent to prepay and the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the Prepayment Amount (as defined below) for such Assessor’s Parcel within thirty (30) days of the request and may charge a reasonable fee for providing this service. Prepayment must be made more than sixty (60) days prior to any redemption date for the IA No. 3 Bonds to be redeemed with the proceeds of such prepaid Special Taxes, unless a shorter period is acceptable to the Trustee and the Water District. The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Prepayment Amount plus Defeasance Amount plus Prepayment Administrative Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined below) April 10, 2020 C-3 10 Community Facilities District No. 2020-1 (Highland Hills) IA No. 3 East Valley Water District shall be calculated as follows: Paragraph No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel. 2. For an Assessor’s Parcel of Developed Property, determine the Maximum Special Tax. For an Assessor’s Parcel of Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit(s) which has already been issued for that Assessor’s Parcel. For an Assessor’s Parcel of Undeveloped Property for which a Building Permit has not been issued, compute the Maximum Special Tax for that Assessor’s Parcel. 3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the total estimated Maximum Special Tax for IA No. 3 based on the Developed Property Special Tax which could be levied in the current Fiscal Year on all expected development through build-out of IA No. 3 as determined by the CFD Administrator, excluding any Assessor’s Parcels for which the Special Tax Obligation has been prepaid. 4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the “Bond Redemption Amount”). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (expressed as a percentage), if any, on the Outstanding Bonds to be redeemed at the first available call date (the “Redemption Premium”). 6. Compute the current Future Facilities Costs. 7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the “Future Facilities Prepayment Amount”). 8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds. 9. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities April 10, 2020 C-3 11 Community Facilities District No. 2020-1 (Highland Hills) IA No. 3 East Valley Water District Amount and the Prepayment Administrative Fees and Expenses from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. 10. Take the amount computed pursuant to paragraph 8 and subtract the amount computed pursuant to paragraph 9 (the “Defeasance Amount”). 11. Verify the administrative fees and expenses of IA No. 3, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Prepayment Administrative Fees and Expenses”). 12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Indenture) on the prepayment date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”). No Reserve Fund Credit shall be granted if reserve funds are below 100% of the reserve requirement. 13. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the larger quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the “Capitalized Interest Credit”). 14. The Special Tax Obligation is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 10, and 11, less the amounts computed pursuant to paragraphs 12 and 13 (the “Prepayment Amount”). 15. From the Prepayment Amount, the sum of the amounts computed pursuant to paragraphs 4, 5, and 10, less the amounts computed pursuant to paragraphs 12, and 13 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make Debt Service payments. The amount computed pursuant to paragraph 7 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 11 shall be retained by IA No. 3. The Prepayment Amount may be sufficient to redeem an amount other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to redeem Bonds to be used with the next prepayment of Bonds. The CFD Administrator will confirm that all previously levied Special April 10, 2020 C-3 12 Community Facilities District No. 2020-1 (Highland Hills) IA No. 3 East Valley Water District Taxes have been paid in full. With respect to any Assessor's Parcel that is prepaid in full, once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid, the Water District shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Taxes and the release of the Special Tax lien on such Assessor’s Parcel, and the Special Tax Obligation of such Assessor's Parcel to pay the Special Tax shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Taxes less Administrative Expenses for each Fiscal Year that may be levied on Taxable Property, respectively, after the proposed prepayment is at least 1.1 times the annual Debt Service on all Outstanding Bonds. B. Partial Prepayment The Special Tax on an Assessor’s Parcel of Developed Property or for Undeveloped Property for which a Building Permit has been issued may be partially prepaid. The Partial Prepayment Amount shall be calculated as in Section 6.A.; except that a partial prepayment shall be calculated according to the following formula: PP = (PE – A) x F + A These terms have the following meaning: PP = the Partial Prepayment PE = the Prepayment Amount calculated according to Section 6.A. F = the percentage by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax. A= The Administrative Fees and Expenses from Section 6.A. The owner of any Assessor’s Parcel who desires such prepayment shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax, (ii) the percentage by which the Special Tax shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax for an Assessor’s Parcel within sixty (60) days of the request and may charge a reasonable fee for providing this service With respect to any Assessor’s Parcel that is partially prepaid, the Water District shall (i) distribute the funds remitted to it according to Section 6.A., and (ii) indicate in the records of IA No. 3 that there has been a partial prepayment of the Special Tax and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel pursuant to Section 3. April 10, 2020 C-3 13 Community Facilities District No. 2020-1 (Highland Hills) IA No. 3 East Valley Water District Notwithstanding the foregoing, no partial prepayment shall be allowed unless the amount of Maximum Special Taxes A less Administrative Expenses for each Fiscal Year that may be levied on Taxable Property, respectively, after the proposed partial prepayment is at least 1.1 times the annual Debt Service on all Outstanding Bonds. 7. TERM OF SPECIAL TAX The Annual Special Tax shall be levied for a period of thirty-five (35) Fiscal Years after the last series of Bonds has been issued, provided that the Special Tax shall not be levied later than Fiscal Year 2070/2071. 8. EXEMPTIONS The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels owned by the State of California, Federal or other local governments, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels developed or planned to be developed exclusively for any type of Non-Residential Property use, (iv) Assessor’s Parcels with public utility easement by the restriction or other restriction, as determined reasonably by the CFD Administrator, provided that no such classification would reduce the sum of all Taxable Property within IA No. 3 to less than 33.95 Acres. Assessor’s Parcels which cannot be classified as Exempt Property because such classification would reduce the sum of all Taxable Property in IA No. 3 to less than 33.95 Acres shall be classified as Provisional Undeveloped Property, and will continue to be subject to the Special Tax accordingly. Tax exempt status for this purpose of this paragraph will be assigned by the CFD Administrator in the chronological order in which property becomes eligible for classification as Exempt Property. If the use of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s Parcel is no longer classified as one of the uses set forth in the first paragraph of this Section 8 above that would make such Assessor’s Parcel eligible to be classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property. 9. APPEALS Any landowner who pays the Annual Special Tax and claims the amount of the Annual Special Tax levied on his or her Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such error not later than twelve (12) months after first having paid the first installment of the Annual Special Tax that is disputed. If following such consultation, the CFD Administrator determines that an error has occurred, the CFD Administrator may recommend changing the amount of the Annual Special Tax levied on such Assessor’s Parcel. If following such consultation and action, if any by the CFD Administrator, the landowner believes such error still exists, such person may file a written notice with the General Manager appealing the amount of the Annual Special Tax levied on such Assessor’s Parcel. Upon the receipt of such notice, the April 10, 2020 C-3 14 Community Facilities District No. 2020-1 (Highland Hills) IA No. 3 East Valley Water District General Manager may establish such procedures as deemed necessary to undertake the review of any such appeal. The General Manager thereof shall interpret this Rate and Method of Apportionment and make determinations relative to the administration of the Annual Special Tax and any landowner appeals. The decision of the General Manager shall be final and binding as to all persons. East Valley Water District Resolution 2020.10 Page 1 of 3 RESOLUTION 2020.10 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT TO INCUR BONDED INDEBTEDNESS WITHIN COMMUNITY FACILITIES DISTRICT NO. 2020-1 (HIGHLAND HILLS) OF EAST VALLEY WATER DISTRICT AND IMPROVEMENT AREA NOS. 1, 2 AND 3 THEREIN WHEREAS, the East Valley Water District (the “District”), a county water district that is duly organized and existing under and by virtue of the laws of the State of California (the “State”), has received a request from First American Title Insurance Company (“First American”) to establish a community facilities district to aid in the development of the Highland Hills property; and WHEREAS, upon receipt of the request from First American as provided in Section 53339.2 of the Mello-Roos Community Facilities Act of 1982 (California Government Code Section 53111 et seq., the “Act”), the Board of Directors of the District (the “Board”) instituted proceedings to establish Community Facilities District No. 2020-1 (Highland Hills) of East Valley Water District (the “Community Facilities District”) and Improvement Area Nos. 1, 2 and 3 therein (each an “Improvement Area” and, together, the “Improvement Areas”) with boundaries coterminous with the property described in Exhibit A to Resolution No. 2020.09 (the “Resolution of Intention”) adopted on the date of this Resolution (the “Property”). The Resolution of Intention stated the Board’s intention to establish the Community Facilities District and each Improvement Area therein and to finance: (1) the purchase, construction, expansion, improvement or rehabilitation of the public facilities described in Exhibit B to the Resolution of Intention, including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”); and (2) the incidental expenses to be incurred in connection with financing the Facilities, forming the Community Facilities District and each Improvement Area therein and administering the Community Facilities District (the “Incidental Expenses”); and WHEREAS, in order to finance the Facilities and Incidental Expenses, the Board intends to authorize the issuance of bonds in an amount not to exceed $24,000,000 for the Community Facilities District, including $12,000,000 for Improvement Area No. 1, $5,000,000 for Improvement Area No. 2 and $7,000,000 for Improvement Area No. 3, the repayment of which is to be secured by special taxes levied in accordance with Section 53328 of the Act on all property in the applicable Improvement Area, other than those properties exempted from taxation in the rates and methods of apportionment set forth in Exhibit C to the Resolution of Intention; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the District as follows: Section 1. Findings. The Board hereby specifically finds and declares that each of the statements, findings and determinations of the District set forth in the above recitals and in the preambles of the documents approved herein are true and correct. Section 2. Necessity to Incur Indebtedness. It is necessary to incur bonded indebtedness within the boundaries of the Community Facilities District in an amount not to exceed $24,000,000 for the Community Facilities District, including $12,000,000 for Improvement Area No. 1, East Valley Water District Resolution 2020.10 Page 2 of 3 $5,000,000 for Improvement Area No. 2 and $7,000,000 for Improvement Area No. 3, in order to finance certain of the costs of the Facilities and Incidental Expenses, as permitted by the Act. Section 3. Purpose of Indebtedness. The indebtedness will be incurred for the purpose of financing the costs of the Facilities and the Incidental Expenses, including, but not limited to, the funding of reserve funds for the bonds, the financing of costs associated with the issuance of the bonds and all other costs and expenses necessary to finance the Facilities which are permitted to be financed pursuant to the Act. Section 4. Bonds. It is the intention of the Board to authorize the sale of bonds for each Improvement Area in one or more series, which bonds may be issued to fund Facilities costs and Incidental Expenses in the maximum amount set forth in Section 2, and which bonds may bear interest at a rate not in excess of the maximum rate permitted by law at the time that the bonds are issued. The term of the bonds of each series shall be determined pursuant to a resolution of the Board authorizing the issuance of the bonds of such series, but such term shall in no event exceed 31 years from the September 1 next following the date of issuance of the bonds of such series, or such longer term as is then permitted by law. Section 5. Public Hearing. A combined public hearing (the “Hearing”) on the establishment of the Community Facilities District and each Improvement Area therein, the proposed rates and methods of apportionment of special taxes for each Improvement Area and the proposed issuance of bonds for each Improvement Area to finance the Facilities and the Incidental Expenses shall be held at 5:30 p.m., or as soon thereafter as practicable, on June 10, 2020, at the District, 31111 Greenspot Road, Highland, California 92346. At the time and place set forth in this Resolution for the Hearing, any interested persons, including all persons owning land or registered to vote within the proposed Community Facilities District and each Improvement Area therein, may appear and be heard. Section 6. Notice. The Secretary of the District is hereby authorized and directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the Community Facilities District. The Secretary of the District is further authorized and directed to mail a copy of the Notice to each of the landowners within the boundaries of the Improvement Areas at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the Improvement Areas and a description of the proposed voting procedure for the elections required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing. Section 7. Other Actions. The President or Vice President of the Board or the General Manager or Chief Financial Officer of the District or the designee thereof and any other proper officers of the District, acting singly, are hereby authorized and directed to do any and all things and to execute and deliver any and all documents and certificates which such officers may deem necessary or advisable in order to effectuate the purposes of this Resolution, and such actions previously taken by such officers are hereby ratified and confirmed. Section 8. Effect. This Resolution shall take effect immediately. East Valley Water District Resolution 2020.10 Page 3 of 3 This Resolution shall take effect as of the 22nd day of April 2020. ADOPTED this 22nd day of April 2020. ROLL CALL: Ayes: Noes: Absent: Abstain: David E. Smith, Board President April 22, 2020 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2020.10 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held April 22, 2020. ATTEST: _____________________________ John Mura, Board Secretary