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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 10/13/2021BOARD OF DIRECTORS OCTOBER 13, 2021 East Valley Water District was formed in 1954 and provides water and wastewater services to 103,000 residents within the cities of San Bernardino and Highland, and portions of San Bernardino County. EVWD operates under the direction of a 5­member elected Board. GOVERNING BOARD MANAGEMENT David E. Smith Chairman of the Board John Mura General Manager/CEO Phillip R. Goodrich Vice Chairman Brian Tompkins Chief Financial Officer Chris Carrillo Governing Board Member Jeff Noelte Director of Engineering & Operations Ronald L. Coats Governing Board Member Kelly Malloy Director of Strategic Services James Morales, Jr. Governing Board Member Kerrie Bryan Director of Administrative Services Justine Hendricksen District Clerk Patrick Milroy  Operations Manager Rocky Welborn  Water Reclamation Manager EVWD Regular Board Meeting October 13, 2021 ­ 5:30 PM Closed Session begins at 4:30 p.m. 31111 Greenspot Road, Highland, CA 92346 Via Teleconference In an effort to prevent the spread of COVID­19 and in accordance with Governor Newsom’s Executive Order N­25­20 and N­29­20, 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: 1­209­425­5876 and enter CONFERENCE ID: 878 461 520# You may also join by clicking HERE to join the meeting via Microsoft Teams. 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 eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability­related 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) 885­4900 at least 72 hours prior to said meeting. 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. 1.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. a.Approval of Agenda RECESS INTO CLOSED SESSION 2.CLOSED SESSION a.CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [Government Code Section 54956.9(d)(1)] Name of Case: East Valley Water District v. Brucie Cagle, et al., CASE NO. CIVSB 2112619 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.Approve the August 25, 2021 Regular Board Meeting Minutes b.Approve the September 8, 2021 Regular Board Meeting Minutes c.Approve Directors' Fees and Expenses for September 2021 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Community Facilities District (CFD) Petition and Adoption of Resolutions 2021.14, 2021.15, and 2021.16 to Facilitate Establishment of CFD No. 2021­1 for Mediterra b.Consider Authorization to Transfer Unclaimed Funds into the District’s General Fund c.Consider Adoption of Resolution 2021.18 ­ Imagine a Day Without Water d.Consider Adoption of Resolution 2021.20 – Participation in the Great California ShakeOut e.Consider Adoption of Resolution 2021.19 ­ Findings and Determinations Regarding Teleconference Meetings f.Consider Board Meeting Cancellations 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSOCTOBER 13, 2021East Valley Water District was formed in 1954 and provides water and wastewater services to103,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD MANAGEMENTDavid E. SmithChairman of the Board John MuraGeneral Manager/CEOPhillip R. GoodrichVice Chairman Brian TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsRonald L. CoatsGoverning Board Member Kelly MalloyDirector of Strategic ServicesJames Morales, Jr.Governing Board Member Kerrie BryanDirector of Administrative ServicesJustine HendricksenDistrict ClerkPatrick Milroy  Operations Manager Rocky Welborn  Water Reclamation Manager EVWD Regular Board Meeting October 13, 2021 ­ 5:30 PM Closed Session begins at 4:30 p.m. 31111 Greenspot Road, Highland, CA 92346 Via Teleconference In an effort to prevent the spread of COVID­19 and in accordance with Governor Newsom’s Executive Order N­25­20 and N­29­20, 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: 1­209­425­5876 and enter CONFERENCE ID: 878 461 520# You may also join by clicking HERE to join the meeting via Microsoft Teams. 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 eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability­related 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) 885­4900 at least 72 hours prior to said meeting. 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. 1.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. a.Approval of Agenda RECESS INTO CLOSED SESSION 2.CLOSED SESSION a.CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [Government Code Section 54956.9(d)(1)] Name of Case: East Valley Water District v. Brucie Cagle, et al., CASE NO. CIVSB 2112619 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.Approve the August 25, 2021 Regular Board Meeting Minutes b.Approve the September 8, 2021 Regular Board Meeting Minutes c.Approve Directors' Fees and Expenses for September 2021 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Community Facilities District (CFD) Petition and Adoption of Resolutions 2021.14, 2021.15, and 2021.16 to Facilitate Establishment of CFD No. 2021­1 for Mediterra b.Consider Authorization to Transfer Unclaimed Funds into the District’s General Fund c.Consider Adoption of Resolution 2021.18 ­ Imagine a Day Without Water d.Consider Adoption of Resolution 2021.20 – Participation in the Great California ShakeOut e.Consider Adoption of Resolution 2021.19 ­ Findings and Determinations Regarding Teleconference Meetings f.Consider Board Meeting Cancellations 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSOCTOBER 13, 2021East Valley Water District was formed in 1954 and provides water and wastewater services to103,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD MANAGEMENTDavid E. SmithChairman of the Board John MuraGeneral Manager/CEOPhillip R. GoodrichVice Chairman Brian TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsRonald L. CoatsGoverning Board Member Kelly MalloyDirector of Strategic ServicesJames Morales, Jr.Governing Board Member Kerrie BryanDirector of Administrative ServicesJustine HendricksenDistrict ClerkPatrick Milroy Operations ManagerRocky Welborn Water Reclamation ManagerEVWD Regular Board MeetingOctober 13, 2021 ­ 5:30 PMClosed Session begins at 4:30 p.m.31111 Greenspot Road, Highland, CA 92346Via TeleconferenceIn an effort to prevent the spread of COVID­19 and in accordance with Governor Newsom’sExecutive Order N­25­20 and N­29­20, this meeting is being conducted via teleconference.There will be no public location for attending this meeting in person. Members of the publicmay listen and provide public comment telephonically.Anyone wishing to join the meeting may do so using the following information:DIAL: 1­209­425­5876 and enter CONFERENCE ID: 878 461 520#You may also join by clicking HERE to join the meeting via Microsoft Teams.PLEASE NOTE:Materials related to an item on this agenda submitted to the Board after distribution of theagenda packet are available for public inspection in the District’s office located at 31111Greenspot Rd., Highland, during normal business hours. Also, such documents are availableon the District’s website at eastvalley.org and are subject to staff’s ability to post thedocuments before the meeting.Pursuant to Government Code Section 54954.2(a), any request for a disability­relatedmodification or accommodation, including auxiliary aids or services, that is sought in orderto participate in the above agendized public meeting should be directed to the District Clerkat (909) 885­4900 at least 72 hours prior to said meeting. 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. 1.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. a.Approval of Agenda RECESS INTO CLOSED SESSION 2.CLOSED SESSION a.CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [Government Code Section 54956.9(d)(1)] Name of Case: East Valley Water District v. Brucie Cagle, et al., CASE NO. CIVSB 2112619 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.Approve the August 25, 2021 Regular Board Meeting Minutes b.Approve the September 8, 2021 Regular Board Meeting Minutes c.Approve Directors' Fees and Expenses for September 2021 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Community Facilities District (CFD) Petition and Adoption of Resolutions 2021.14, 2021.15, and 2021.16 to Facilitate Establishment of CFD No. 2021­1 for Mediterra b.Consider Authorization to Transfer Unclaimed Funds into the District’s General Fund c.Consider Adoption of Resolution 2021.18 ­ Imagine a Day Without Water d.Consider Adoption of Resolution 2021.20 – Participation in the Great California ShakeOut e.Consider Adoption of Resolution 2021.19 ­ Findings and Determinations Regarding Teleconference Meetings f.Consider Board Meeting Cancellations 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSOCTOBER 13, 2021East Valley Water District was formed in 1954 and provides water and wastewater services to103,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD MANAGEMENTDavid E. SmithChairman of the Board John MuraGeneral Manager/CEOPhillip R. GoodrichVice Chairman Brian TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsRonald L. CoatsGoverning Board Member Kelly MalloyDirector of Strategic ServicesJames Morales, Jr.Governing Board Member Kerrie BryanDirector of Administrative ServicesJustine HendricksenDistrict ClerkPatrick Milroy Operations ManagerRocky Welborn Water Reclamation ManagerEVWD Regular Board MeetingOctober 13, 2021 ­ 5:30 PMClosed Session begins at 4:30 p.m.31111 Greenspot Road, Highland, CA 92346Via TeleconferenceIn an effort to prevent the spread of COVID­19 and in accordance with Governor Newsom’sExecutive Order N­25­20 and N­29­20, this meeting is being conducted via teleconference.There will be no public location for attending this meeting in person. Members of the publicmay listen and provide public comment telephonically.Anyone wishing to join the meeting may do so using the following information:DIAL: 1­209­425­5876 and enter CONFERENCE ID: 878 461 520#You may also join by clicking HERE to join the meeting via Microsoft Teams.PLEASE NOTE:Materials related to an item on this agenda submitted to the Board after distribution of theagenda packet are available for public inspection in the District’s office located at 31111Greenspot Rd., Highland, during normal business hours. Also, such documents are availableon the District’s website at eastvalley.org and are subject to staff’s ability to post thedocuments before the meeting.Pursuant to Government Code Section 54954.2(a), any request for a disability­relatedmodification or accommodation, including auxiliary aids or services, that is sought in orderto participate in the above agendized public meeting should be directed to the District Clerkat (909) 885­4900 at least 72 hours prior to said meeting.In order to comply with legal requirements for posting of agenda, only those items filedwith the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesdaymeeting not requiring departmental investigation, will be considered by the Board ofDirectors.CALL TO ORDERROLL CALL OF BOARD MEMBERSPUBLIC COMMENTSAny person wishing to speak to the Board of Directors is asked to complete a SpeakerCard and submit it to the District Clerk prior to the start of the meeting. Each speaker islimited to three (3) minutes, unless waived by the Chairman of the Board. Under the Stateof California Brown Act, the Board of Directors is prohibited from discussing or takingaction on any item not listed on the posted agenda. The matter will automatically bereferred to staff for an appropriate response or action and may appear on the agenda at afuture meeting.1.AGENDAThis 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 notappearing on the following agenda unless the Board of Directors makes adetermination that an emergency exists or that a need to take immediate action onthe item came to the attention of the District subsequent to the posting of theagenda.a.Approval of AgendaRECESS INTO CLOSED SESSION2.CLOSED SESSIONa.CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION[Government Code Section 54956.9(d)(1)]Name of Case: East Valley Water District v. Brucie Cagle, et al., CASENO. CIVSB 21126195:30 PM RECONVENE MEETINGPLEDGE OF ALLEGIANCEROLL CALL OF BOARD MEMBERSANNOUNCEMENT 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.Approve the August 25, 2021 Regular Board Meeting Minutes b.Approve the September 8, 2021 Regular Board Meeting Minutes c.Approve Directors' Fees and Expenses for September 2021 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Community Facilities District (CFD) Petition and Adoption of Resolutions 2021.14, 2021.15, and 2021.16 to Facilitate Establishment of CFD No. 2021­1 for Mediterra b.Consider Authorization to Transfer Unclaimed Funds into the District’s General Fund c.Consider Adoption of Resolution 2021.18 ­ Imagine a Day Without Water d.Consider Adoption of Resolution 2021.20 – Participation in the Great California ShakeOut e.Consider Adoption of Resolution 2021.19 ­ Findings and Determinations Regarding Teleconference Meetings f.Consider Board Meeting Cancellations 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN Agenda Item #3b October 13, 20211 Meeting Date: October 13, 2021 Agenda Item #3b Consent Item Regular Board Meeting with Closed Session TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approve the August 25, 2021 Regular Board Meeting Minutes RECOMMENDATION Staff recommends that the Board of Directors approve the minutes as submitted. BACKGROUND / ANALYSIS N/A AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability B. Utilize Effective Communication Methods REVIEW BY OTHERS This agenda item has been reviewed by the Administration Department. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ John Mura General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS August 25, 2021 regular meeting minutes Regular Board Meeting Minutes Page 5 August 25, 2021 Draft Pending Board Approval Regular Board Meeting Via Teleconference Meeting Date: August 25, 2021 CALL TO ORDER The Chairman called the meeting to order at 5:31 p.m. PLEDGE OF ALLEGIANCE Vice Chairman Goodrich led the flag salute. ROLL CALL OF BOARD MEMBERS PRESENT Directors: Goodrich, Smith, Carrillo, Coats, Morales ABSENT Directors: 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; Kerrie Bryan, Director of Administrative Services; Patrick Milroy, Operations Manager; Justine Hendricksen, District Clerk; Shayla Antrim, Senior Administrative Assistant LEGAL COUNSEL Jean Cihigoyenetche GUESTS Members of the Public Regular Board Meeting Minutes Page 5 August 25, 2021 PUBLIC COMMENTS Chairman Smith declared the public participation section of the meeting at 5:32 p.m. There being no written or verbal comments, the public participation section was closed. 1. AGENDA a. Approval of Agenda A motion was made by Director Carrillo, seconded by Vice Chairman Goodrich, that the Board approve the agenda as submitted. The motion Carried by the following roll call vote: Ayes: Goodrich, Smith, Carrillo, Coats, Morales Noes: None Absent: None 2. APPROVAL OF CONSENT CALENDAR a. Approve August 11, 2021 Regular Board Meeting Minutes b. July 2021 Disbursements: Accounts payable disbursements for the period include check numbers 258007 through 258154, bank drafts, and ACH payments in the amount of $5,751,867.60 and $676,982.21 for payroll A motion was made by Director Coats, seconded by Vice Chairman Goodrich, that the Board approve the Consent Calendar as submitted. The motion Carried by the following roll call vote: Ayes: Goodrich, Smith, Carrillo, Coats, Morales Noes: None Absent: None 3. DISCUSSION AND POSSIBLE ACTION ITEMS a. Consider Approval of Investment Transaction Report for Month Ended July 31, 2021 The Chief Financial Officer provided information regarding California Government Code §53607 which requires the CFO/Treasurer of a public agency to submit a monthly investment transaction report to the Board when the Board has delegated to the CFO/Treasurer the authority to invest, reinvest, sell, or exchange securities held in the Agency’s investment portfolio. He stated that during a review of the District’s Investment Policy in March of this year, staff pointed out the delegation as described above. He stated that staff will begin preparing monthly Regular Board Meeting Minutes Page 5 August 25, 2021 investment transaction reports beginning with July 2021. A motion was made by Director Morales, seconded by Vice Chairman Goodrich, that the Board accept and file the Investment Transaction Report for the month ended July 31, 2021 as submitted. The motion Carried by the following roll call vote: Ayes: Goodrich, Smith, Carrillo, Coats, Morales Noes: None Absent: None b. Consider Approval of Student Internship Program Policy The Director of Administrative Services reviewed the District’s Student Internship Program Policy with the Board. She provided information regarding the Water and Resource Management Pathway Program that took place during the spring of 2021. She stated that developing a paid internship program is one of the goals of the Human Resource Department for the current fiscal year. She described the purpose of the program, requirements of those that qualify, the length of the program, and further details on micro-internships. A motion was made by Director Carrillo, seconded by Vice Chairman Goodrich, that the Board approve the Student Internship Program Policy as submitted. The motion Carried by the following roll call vote: Ayes: Goodrich, Smith, Carrillo, Coats, Morales Noes: None Absent: None 4. REPORTS a. Board of Directors’ Reports Director Coats reported on the following: August 12 he participated in the San Bernardino Valley Municipal Water District Policy Workshop where they discussed retaining the Advisory Commission on Water Policy until a replacement is created; August 13 he participated in the Building Industry Association’s Southern California Water Conference; August 16 he attended the Association of San Bernardino County Special Districts monthly meeting where Ms. Heather Dyer was the speaker; August 17 he attended a tour of the Sterling Natural Resource Center with Director of Engineering and Operations to view construction progress; and August 23 he discussed District business with the General Regular Board Meeting Minutes Page 5 August 25, 2021 Manager/CEO. Director Morales reported on the following: August 12 he participated in the San Bernardino Valley Municipal Water District Policy Workshop meeting; August 13 he participated in the Inland Valley Association of Realtors meeting where he provided an update on the Sterling Natural Resource Center and the District’s Internship Program Policy; August 16, 19 and 20 he participated in Association of California Water Agencies Legislative meetings where they discussed SB 222; and August 24 he participated in the City of San Bernardino Board of Water Commissioners meeting where they discussed water rate structure changes. Director Carrillo reported on the following: August 18 he participated the City of San Bernardino City Council meeting where they approved the Carousel Mall Development and discussed the City’s newly adopted water regulations; and August 20 he discussed District business with the General Manager/CEO. Vice Chairman Goodrich reported on the following: August 12 he participated in the Legislative & Public Outreach Committee meeting; August 16 he participated in agenda review with the General Manager/CEO; August 16 he attended the Association of San Bernardino County Special Districts monthly meeting; August 18 he discussed District business with the General Manager/CEO; and August 24 he participated in the Succession Planning Ad-hoc Committee meeting. Chairman Smith reported on the following: August 12 he participated in the Legislative & Public Outreach Committee meeting; August 18 he discussed District business with the General Manager/CEO; August 20 he participated in agenda review with the General Manager/CEO; and August 24 he participated in the Succession Planning Ad-hoc Committee meeting. b. General Manager/CEO Report The General Manager/CEO stated that on August 31 Chairman Smith will provide a Sterling Natural Resource Center project overview and update to the Highland Chamber of Commerce. The General Manager/CEO stated that the District strives to build community relationships and encourage direct communication with residents. As part of this commitment, the District periodically publishes Sterling Natural Resource Center construction updates and other service Regular Board Meeting Minutes Page 5 August 25, 2021 d. Board of Directors’ Comments Director Morales commended staff on the new agenda format. He stated that it is clean and easy to follow. Chairman Smith praised staff for their quick response to a repair work performed near his residence. __________________________________ __________________________________ John Mura, Secretary David E. Smith, Board President Drafted By: Shayla Antrim information on Nextdoor, where recent posts have been viewed over 800 times. The General Manager/CEO stated that District offices will be closed Monday, September 6 in observance of Labor Day. c. Legal Counsel Report No report at this time. ADJOURN The meeting adjourned at 6:00 p.m. Agenda Item #3b October 13, 20211 Meeting Date: October 13, 2021 Agenda Item #3b Consent Item Regular Board Meeting with Closed Session TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approve the September 8, 2021 Regular Board Meeting Minutes RECOMMENDATION Staff recommends that the Board of Directors approve the minutes as submitted. BACKGROUND / ANALYSIS N/A AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability B. Utilize Effective Communication Methods REVIEW BY OTHERS This agenda item has been reviewed by the Administration Department. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ John Mura General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS September 8, 2021 regular meeting minutes Regular Board Meeting Via Teleconference Meeting Date: September 8, 2021 CALL TO ORDER The Chairman of the Board called the meeting to order at 5:39 p.m. Director Coats led the flag salute. ROLL CALL OF BOARD MEMBERS PRESENT Directors: Carrillo, Coats, Goodrich, Morales, Smith ABSENT Directors: 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; Rocky Welborn, Water Reclamation Manager; William Ringland, Conservation/Public Affairs Manager; Justine Hendricksen, District Clerk; Shayla Antrim, Sr. Administrative LEGAL COUNSEL Jean Cihigoyenetche GUESTS Members of the public Draft Pending Board Approval PUBLIC COMMENTS Chairman Smith declared the public participation section of the meeting open at 4:32 p.m. There being no written or verbal comments, the public participation section was closed. 1. APPROVAL OF AGENDA a. Approval of Agenda A motion was made by Director Morales, seconded by Vice Chairman Goodrich, that the Board approve the agenda as submitted. The motion carried by the following roll call vote: Ayes: Morales, Coats, Goodrich, Morales, Smith Noes: None Absent: None RECESS INTO CLOSED SESSION The Board entered into Closed Session at 4:33 p.m. as provided in the Ralph M. Brown Act Government Code Section 54956.8 to discuss the item listed on the agenda. 5:30 PM RECONVENE THE MEETING The Board reconvened the meeting at 5:30 p.m. PLEDGE OF ALLEGIANCE Director Coats led the flag salute. ROLL CALL OF BOARD MEMBERS Directors: Carrillo, Coats, Goodrich, Morales, Smith ABSENT Directors: None ANNOUNCEMENT OF CLOSED SESSION ACTIONS With respect to Item #2a : Legal Counsel stated that the Board discussed real property negotiations and took action to approve a purchase and sale agreement for the real property described as APN’s: 1191-251-02, 05, 06 with East Valley Water District being the seller of the property for the sale price of $2,200,000. He stated that the close of escrow is anticipated to be January 22, 2022. A motion was made by Director Morales, seconded by Director Coats, that the Board approve the purchase and sale agreement for real property described as APN’s: 1191-251-02, 05, 06 for the sale price of $2,200,000 and authorize the General Manager/CEO to execute documents necessary to complete the sales transaction of the property. The motion carried by the following roll call vote: Ayes: Morales, Coats, Goodrich, Morales, Smith Noes: None Absent: None PUBLIC COMMENTS Chairman Smith declared the public participation section of the meeting open at 4:32 p.m. There being no written or verbal comments, the public participation section was closed. 3. APPROVAL OF CONSENT CALENDAR a. Approve Directors’ fees and expenses for August 2021 A motion was made by Director Coats, seconded by Vice Chairman Goodrich, that the Board approve the Consent Calendar items as submitted. The motion carried by the following roll call vote: Ayes: Morales, Coats, Goodrich, Morales, Smith Noes: None Absent: None 4. INFORMATIONAL ITEMS a. Conservation Update The Director of Strategic Services provided an update on the District’s conservation efforts and a drought update. She reviewed how the State is currently being impacted by the drought and that the District is currently in Stage 1 of the Water Shortage Contingency Plan. She stated that the District continues to engage customers in conservation programs, encourage water efficiency efforts and will continue to monitor the drought. Information only. b. Outreach Update The Conservation/Public Affairs Manager reviewed the District’s recent outreach efforts. He discussed multiple methods of communication to engage with the community and the key projects that have been included in the public outreach. Information only. 5. REPORTS a. Board of Directors’ Reports Director Morales reported that on September 2 he toured the Sterling Natural Resource Center to view construction progress. Director Carrillo reported on the following: September 2 he participated in the City of San Bernardino City Council meeting; and September 7 the General Manager/CEO provided him a District update. Director Coats reported on the following: August 30 through September 2 he attended the California Special Districts Association Annual Conference; September 7 he discussed District business with the General Manager/CEO; September 7 he participated in the San Bernardino Valley Municipal Water District Board meeting; and September 8 he participated in the San Bernardino Valley Water Conservation District Board meeting where they discussed redrawing district lines. Vice Chairman Goodrich reported on the following: August 30 through September 2 he attended the California Special Districts Association Annual Conference; and September 2 he reviewed the agenda with the General Manager/CEO. Chairman Smith reported on the following: August 31 he attended the Highland Chamber of Commerce monthly luncheon where he provided an update on the Sterling Natural Resource Center; and September 2 he reviewed the agenda with the General Manager/CEO. Information only. b. General Manager/CEO Report The General Manager/CEO reported that September is National Emergency Preparedness Month. He stated that this month the District is providing the community with information on the steps the District takes to maintain service during critical events. The General Manager/CEO reminded customers that the District offers several contactless options for customers to pay their bill. That most options are available 24/7 and don’t include a service fee. Customers may make their payment online, by phone, via the District drop box and kiosk, at any 7-Eleven store, and by mail. The General Manager/CEO stated that in observance of Columbus Day, the District’s office and customer service lines will be closed on Monday, October 11. The General Manager/CEO stated that in striving to maintain operations and keep the community safe, the District will continue to host Board and Committee meetings virtually. Staff continues to monitor mask, vaccination, and social distancing requirements established by the State of California. Information only. c. Legal Counsel Report Legal Counsel clarified the motion taken in closed session. d. Board of Directors’ Comments Director Coats expanded on Vice Chairman Goodrich’s comment regarding AB 5, a legislative topic discussed at the California Special Districts Association Annual conference. Director Carrillo thanked staff for their presentations. Director Morales praised staff for their work on the September Pipeline Outreach publication; and he commended Chairman Smith for his Sterling Natural Resource Center presentation at the Highland Chamber of Commerce monthly meeting. Chairman Smith thanked everyone for participating in this evening’s Board meeting. ADJOURN Chairman Smith adjourned the meeting at 6:05 p.m. John Mura, Secretary David E. Smith, Board President Agenda Item #3a October 13, 20211 1 8 1 Meeting Date: October 13, 2021 Agenda Item #3a Consent Item Regular Board Meeting with Closed Session TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approve Directors' Fees and Expenses for September 2021 RECOMMENDATION Staff recommends that the Board of Directors approve the Governing Board Members' Fees and Expenses for September 2021. BACKGROUND / ANALYSIS The Board has instructed staff to list all director fees and expenses as a separate agenda item to show full fiscal transparency. Only after Board review and approval will the compensation and expenses be paid. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by the Administration Department. FISCAL IMPACT The fiscal impact associated with this agenda item is $7,949.72 which is included in the current fiscal budget. Recommended by: ________________ John Mura General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk Agenda Item #3a October 13, 20212 1 8 1 Meeting Date: October 13, 2021 Agenda Item #3a Consent Item ATTACHMENTS Director Expense Reports September 2021 Name: Month / Year:2021 Meeting No.Stipend Written Oral 1 9 /01 175 2 9 /07 175 3 9 /08 175 4 9 /10 175 5 9 /21 175 3 6 9 /22 175 7 9 /23 175 8 9 10 11 12 13 14 15 16 17 18 19 20 Meetings 0.56/mi No. 1 2 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval $0.00 Mileage Miscellaneous Reimbursement Description Meeting with General Manager/CEO or Designee Inland Action Regular Board Meeting Meeting with General Manager/CEO or Designee Expense Type $1,225.00 $0.00 Reimbursement Administration Signature I certify that the above is correct and accurate to the best of my knowledge. Chris Carrillo Date Meeting / Event Description Date City of San Bernardino Council Meeting Meeting with General Manager/CEO or Designee Regular Board Meeting $1,225.00 Chris Carrillo September / 0.00 X ( 7 ) Report Provided Subtotal Meetings' Stipend Mileage DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2021 1 2 3 4 5 Chris Carrillo September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Meeting Date: Event Description: Attended online City of San Bernardino city council meeting. 9 / 1 / 2021 City of San Bernardino Council Meeting Brief Description of Meeting/Event Value to EVWD Meeting Date:9 / 7 / 2021 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD Meeting Date:9 / 8 / 2021 Event Description:Regular Board Meeting Phone call with CEO Mura to review agenda for regular board meeting. Brief Description of Meeting/Event Value to EVWD Attended regular board meeting. Meeting Date:9 / 10 / 2021 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD Discussed district business with CEO Mura. Meeting Date:9 / 21 / 2021 Event Description:Inland Action Brief Description of Meeting/Event Value to EVWD Attended Zoom Inland Action meeting. DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2021 6 7 8 9 10 Meeting Date:9 / 22 / 2021 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Attended regular board meeting. Meeting Date:9 / 23 / 2021 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD Met with CEO Mura to discuss district business. Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Chris Carrillo September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Name: Month / Year:2021 Meeting No.Stipend Written Oral 1 9 /01 175 2 9 /02 175 3 9 /07 0 4 9 /07 175 5 9 /08 0 6 9 /08 175 7 9 /10 0 8 9 /13 175 9 9 /14 0 10 9 /16 0 11 9 /20 175 12 9 /21 0 13 9 /21 175 14 9 /22 175 15 9 /23 175 16 9 /27 175 17 18 19 20 Meetings 0.56/mi No. 1 9 /30 2 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval Ronald L. Coats September / 834.00 X ( 10 ) 73.00 Report Provided Subtotal Meetings' Stipend Mileage Regular Board Meeting Meeting with General Manager/CEO or Designee Administration Signature I certify that the above is correct and accurate to the best of my knowledge. Ronald L. Coats Date Meeting / Event Description Meeting with General Manager/CEO or Designee Engineering & Operations Committee Meeting Date CSDA Annual Conference CSDA Annual Conference Meeting with General Manager/CEO or Designee $2,277.48 $1,750.00 $467.04 Reimbursement 60.44Meals Mileage 761.00 Miscellaneous Reimbursement Description San Bernardino Valley MWD ASBCSD Highland Chamber of Commerce San Bernardino Valley MWD San Bernardino Valley MWD San Bernardino VWC District Regular Board Meeting Meeting with General Manager/CEO or Designee ASBCSD Board Meeting Expense Type $60.44 Dinner on August 30 (Monterey) DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2021 1 2 3 4 5 Event Description:San Bernardino VWC District Brief Description of Meeting/Event Value to EVWD They voted for the presented slate of officers for ACWA Region 9 with one exception. They voted for Director James Morales as President. Congratulations James. They also discussed their process for redrawing their district divisions from the 2020 census data. This must be completed by May 2022, in time for the Nov. 2022 election. Brief Description of Meeting/Event Value to EVWD Had a telephone meeting with John Mura to discuss the CSDA Conference, tonight's agenda and other district business Meeting Date:9 / 7 / 2021 Event Description:San Bernardino Valley MWD Brief Description of Meeting/Event Value to EVWD They approved the following: Consulting agreement with Geoscience for a 20-year Water Quality Modeling Projections of Imported Water Recharge; Agreement with ESRI for Development of a Real Time GIS Environment Configuration; Approved the hiring of a full time HR Manager salary and benefits costing $186,790 per year. Meeting Date:9 / 8 / 2021 Meeting Date:9 / 2 / 2021 Event Description:CSDA Annual Conference Brief Description of Meeting/Event Value to EVWD Meeting Date:9 / 7 / 2021 Event Description:Meeting with General Manager/CEO or Designee Attended their annual conference, where they had an ample amount of breakout sessions to learn the latest on a variety of topics. Very productive to say the least. Ronald L. Coats September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Meeting Date: Event Description: Attended their annual conference, where they had an ample amount of breakout sessions to learn the latest on a variety of topics. Very productive to say the least. 9 / 1 / 2021 CSDA Annual Conference Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2021 6 7 8 9 10 Ronald L. Coats September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Had a telephone meeting with John Mura to discuss district business Meeting Date:9 / 16 / 2021 Event Description:San Bernardino Valley MWD Brief Description of Meeting/Event Value to EVWD Attended a Valley District facilities tour along with State Senator Ochoa-Bogh to acquaint her more with all things water Event Description:ASBCSD Board Meeting Brief Description of Meeting/Event Value to EVWD Chaired our monthly board meeting for our association business Meeting Date:9 / 14 / 2021 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD See official board meeting minutes Meeting Date:9 / 10 / 2021 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD Had a telephone meeting with John Mura to discuss district business Meeting Date:9 / 13 / 2021 Meeting Date:9 / 8 / 2021 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Name: Month / Year:2021 11 12 13 14 15 Ronald L. Coats September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Had a in person meeting with John Mura to discuss district business and also tour SNRC to see the construction progress. Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD See official board meeting minutes Meeting Date:9 / 23 / 2021 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD Attended their quarterly breakfast where the guest speaker was State Senator Ochoa-Bogh Meeting Date:9 / 21 / 2021 Event Description:San Bernardino Valley MWD Brief Description of Meeting/Event Value to EVWD They approved the following: A resolution to support the enhanced recharge project Phase 1 B U.S. Bureau of Reclamation's WaterSMART Drought Response Program; A vote for Director Morals for President of ACWA Region 9 President and also as a board member, congratulations James Meeting Date:9 / 22 / 2021 Event Description:ASBCSD Brief Description of Meeting/Event Value to EVWD Our guest speaker was Dr. Kenisha Williams where she spoke on "How to recruit and retain employees in a changing work world". Very informative speaker and presentation. Meeting Date:9 / 21 / 2021 Event Description:Highland Chamber of Commerce Brief Description of Meeting/Event Value to EVWD Meeting Date:9 / 20 / 2021 DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 4 Name: Month / Year:2021 16 17 18 19 20 Event Description: Brief Description of Meeting/Event Value to EVWD Ronald L. Coats September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Meeting Date:9 / 27 / 2021 Event Description:Engineering & Operations Committee Meeting Brief Description of Meeting/Event Value to EVWD We had updates on the following: Long-term water production; SNRC construction; Plant 134 GAC project; and the Tesla battery project at the headquarters facility, plant 134 and plant 140 Meeting Date: DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 5 Name: Month / Year:2021 Meeting No.Stipend Written Oral 1 9 /01 175 2 9 /02 175 3 9 /02 0 4 9 /08 175 5 9 /22 0 6 9 /22 175 7 9 /18 175 8 9 10 11 12 13 14 15 16 17 18 19 20 Meetings 0.56/mi No. 1 2 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval $0.00 754.00 Mileage Miscellaneous Reimbursement Description Regular Board Meeting Meeting with General Manager/CEO or Designee Regular Board Meeting Exec.recruitment AD-hoc committee meeting Expense Type $875.00 $422.24 Reimbursement Administration Signature I certify that the above is correct and accurate to the best of my knowledge. Phillip R. Goodrich Date Meeting / Event Description Date CSDA Event CSDA Event Agenda Review $1,297.24 Phillip R. Goodrich September / 754.00 X ( 5 ) Report Provided Subtotal Meetings' Stipend Mileage DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2021 1 2 3 4 5 Phillip R. Goodrich September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Meeting Date: Event Description: Attend CSDA fall conference, various breakout sessions and updates 9 / 1 / 2021 CSDA Event Brief Description of Meeting/Event Value to EVWD Meeting Date:9 / 2 / 2021 Event Description:CSDA Event Brief Description of Meeting/Event Value to EVWD Meeting Date:9 / 2 / 2021 Event Description:Agenda Review Attend CSDA fall conference, various breakout sessions and updates Brief Description of Meeting/Event Value to EVWD Meet with CEO for review of current meeting agenda Meeting Date:9 / 8 / 2021 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Attend Reg. board meeting REF.Mins. Meeting Date:9 / 22 / 2021 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD With CEO Mura for a brief review of current agenda and Monthly meeting DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2021 6 7 8 9 10 Meeting Date:9 / 22 / 2021 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Attend Reg. board meeting REF.Mins. Meeting Date:9 / 18 / 2021 Event Description:Exec.recruitment AD-hoc committee meeting Brief Description of Meeting/Event Value to EVWD Attend committee meeting RE:Executive recruitment Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Phillip R. Goodrich September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Name: Month / Year:2021 Meeting No.Stipend Written Oral 1 9 /02 175 2 9 /08 175 3 9 /10 175 4 9 /14 175 5 9 /16 175 6 9 /17 175 7 9 /21 175 8 9 /22 0 9 9 /22 175 10 9 /24 0 11 9 /24 175 12 9 /28 175 13 14 15 16 17 18 19 20 Meetings 0.56/mi No. 1 2 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval $0.00 Mileage Miscellaneous Reimbursement Description ACWA Event ACWA Event San Bernardino Board of Water Commissioners San Bernardino Board of Water Commissioners Meeting with General Manager/CEO or Designee ACWA Event Meeting with General Manager/CEO or Designee ACWA Event Expense Type $1,750.00 $0.00 Reimbursement Administration Signature I certify that the above is correct and accurate to the best of my knowledge. James Morales, Jr. Date Meeting / Event Description Date Meeting with General Manager/CEO or Designee Regular Board Meeting East Valley Association of Realtors $1,750.00 James Morales, Jr.September / 0.00 X ( 10 ) Report Provided Subtotal Meetings' Stipend Mileage Regular Board Meeting DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2021 1 2 3 4 5 James Morales, Jr.September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Meeting Date: Event Description: District operational update. 9 / 2 / 2021 Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD Meeting Date:9 / 8 / 2021 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Meeting Date:9 / 10 / 2021 Event Description:East Valley Association of Realtors Please refer to public agenda Brief Description of Meeting/Event Value to EVWD Provide District operational and SNRC update. Highland Mayor gave update on development horizon. Meeting Date:9 / 14 / 2021 Event Description:San Bernardino Board of Water Commissioners Brief Description of Meeting/Event Value to EVWD Presentation of wastewater financial model and revenue requirements. Meeting Date:9 / 16 / 2021 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD SNRC site visit. DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2021 6 7 8 9 10 Meeting Date:9 / 17 / 2021 Event Description:ACWA Event Brief Description of Meeting/Event Value to EVWD Region 9 conference water education program. Meeting Date:9 / 21 / 2021 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD SNRC site visit and Pathway Program update with Dale Marsden et. al. Meeting Date:9 / 22 / 2021 Event Description:ACWA Event Brief Description of Meeting/Event Value to EVWD ACWA Region 9 conference water education program. No charge, two meetings same day. Meeting Date:9 / 22 / 2021 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Please refer to public agenda. Meeting Date:9 / 24 / 2021 Event Description:ACWA Event Brief Description of Meeting/Event Value to EVWD Executive Board meeting. No charge, two meetings same day. James Morales, Jr.September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Name: Month / Year:2021 11 12 13 14 15 Meeting Date:9 / 24 / 2021 Event Description:ACWA Event Brief Description of Meeting/Event Value to EVWD State Board meeting. Meeting Date:9 / 28 / 2021 Event Description:San Bernardino Board of Water Commissioners Brief Description of Meeting/Event Value to EVWD Strategic Plan update. Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD James Morales, Jr.September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 4 Agenda Item #4d October 13, 20211 2 0 3 Meeting Date: October 13, 2021 Agenda Item #4d Discussion Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Community Facilities District (CFD) Petition and Adoption of Resolutions 2021.14, 2021.15, and 2021.16 to Facilitate Establishment of CFD No. 2021-1 for Mediterra RECOMMENDATION Staff recommends that the Board of Directors (Board) accept the CFD petition and adopt Resolutions 2021.14, 2021.15, and 2021.16 to facilitate the establishment of Community Facilities District No. 2021-1 (Mediterra). BACKGROUND / ANALYSIS In September of 2020, the owners of the Mediterra project, across Greenspot Road from the District Headquarters, deposited $90,000 with the District stating their intent to file a Petition with the Board to request the District’s help in forming a Community Facilities District (CFD) for Mediterra. This was less than three months after the District had completed formation of the Highland Hills CFD, so staff and the team of consultants that had just completed that CFD held a meeting to discuss a Mediterra CFD (CFD 2021-1). Staff deposited the $90,000 and began working with the owner and consultant team on the Resolutions and Agreements necessary to acknowledge the deposit and to acknowledge the District’s willingness to facilitate the formation of a CFD for the Mediterra project. Over the past several months the owner sold a portion of the property drawn (now referred to as Improvement Area 1) to DR Horton, which has been busy with grading while the parcel map was being discussed/approved with the City of Highland and prepared for recording with the County. The map was recorded on August 31, 2021 and is included in documents presented to the Board. As a result, the owner’s petition for formation of a CFD was delivered to the District in September 2021. The petition and three related Resolutions are attached. Summaries of the Resolutions are as follows: Resolution 2021.14 – A Resolution of EVWD approving execution of a Reimbursement Agreement Related to the Mediterra CFD: 1. Reimbursement Agreement – Specifies a $90,000 deposit the Owner must give to the District to pay for costs associated with establishment of a CFD, which Agenda Item #4d October 13, 20212 2 0 3 Meeting Date: October 13, 2021 Agenda Item #4d Discussion Item deposit has been provided to the District, and how the Owner may be reimbursed for those and other CFD costs if and when CFD Bonds are issued. A similar agreement and approving resolution were approved in connection with the Highland Hills CFD formation. Resolution 2021.15 – A Resolution of EVWD declaring its intention to establish CFD 2021-1 (Mediterra) and Improvement Areas 1 and 2 therein, to authorize a special tax levy to pay for Facilities, Incidental Expenses, and Principal and Interest on Bonds. This Resolution establishes: the name of the CFD; the types of facilities that can be built; special tax rates and the method for allocating taxes to properties within the CFD; the time and place for a public hearing and noticing requirements for the public hearing, which is required before the CFD can be formally established, and which is anticipated to be scheduled for December 8, 2021; and a financing team for issuing CFD debt. Resolution 2021.16 – A Resolution of EVWD to incur Bonded Indebtedness within CFD No. 2021-1 (Mediterra), and Improvement Areas 1 and 2 therein. This Resolution establishes the not to exceed amount for a CFD bond issue at $16.5 million and establishes the purpose for which bonds may be issued, and the term for which they may be issued. These Resolutions declare the Board’s intention to take certain actions to facilitate the CFD, but do not commit any financial resources to the CFD – the Mediterra CFD is intended, both now and in the future, to be cost neutral to the District. Ongoing administration, including staff time and work performed by a Special Tax Consultant, will be paid for out of annual tax levies on the properties within the CFD. Staff anticipates that the next request for Board action will be at a Public Hearing during the December 8, 2021, Regular Board Meeting to consider adoption of a Resolution of Formation for CFD 2021-1. AGENCY GOALS AND OBJECTIVES IV - Promote Planning, Maintenance and Preservation of District Resources B. Enhance Planning Efforts that Respond to Future Demands REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department, Legal Counsel, and Agenda Item #4d October 13, 20213 2 0 3 Meeting Date: October 13, 2021 Agenda Item #4d Discussion Item the Finance and Human Resources Committee. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ John Mura General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS 1. EVWD Presentation 2. Owner’s Petition 3. Resolution 2021.14 a. Reimbursement Agreement 4. Resolution 2021.15 5. Resolution 2021.16 October 13, 2021 FORMATION OF EVWD COMMUNITY FACILITIES DISTRICT (CFD) NO. 2021-1 MEDITERRA 1.Property Owner Petitions to Form Community Facilities District (CFD) •District received $90,000 from Owner in September 2020 to Pay for Formation Proceedings (Governed by Deposit and Reimbursement Agreement) 2.EVWD Board Commences CFD Proceedings •Resolution to Approve Reimbursement Agreement •Resolution of Intent to Form CFD •Resolution of Intent to Issue CFD Debt 3.Distribute Ballots to Property Owners 2 SEQUENCE OF EVENTS October 13 October 13 December 1 4.Public Hearing •Election to Form CFD, Authorize Special Tax Levy, and Authorize Bond Issuances 5.Record Rate and Method of Apportionment with County Recorder 6.Issue Bonds •Bond and Disclosure Counsel Needed to Prepare Bond Documents 7.Special Taxes Levied to Pay Debt Service on Bonds 8.Project Costs Funded or Reimbursed 9.EVWD Administers CFD until Bonds Mature 3 SEQUENCE OF EVENTS (CONTINUED) December 8 December 9 4 AERIAL VIEW OF PROPOSED CFD 5 RECOMMENDATIONS •Adopt Resolution 2021.14 -Approve Reimbursement Agreement •Adopt Resolution 2021.15 -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 •Adopt Resolution 2021.16 -Intent to Issue Bonds PETITION TO THE BOARD OF THE EAST VALLEY WATER DISTRICT REQUESTING INSTITUTION OF PROCEEDINGS FOR ESTABLISHMENT OF A COMMUNITY FACILITIES DISTRICT (COMMUNITY FACILITIES DISTRICT NO. 2021-1 OF THE EAST VALLEY WATER DISTRICT (MEDITERRA) 1. The undersigned (the "Applicant") is an owner of portions of the land depicted in Exhibit A hereto and described in Exhibit B hereto (the "Property"), which land is expected to be all of the land included within the boundaries of a community facilities district hereby proposed to be established. The Property is located within the boundaries of the East Valley Water District. 2. The Applicant requests that the Board of Directors (the "Board") of East Valley Water District (“EVWD”) institute proceedings to establish a community facilities district to be known as "Community Facilities District No. 2021-1 of the East Valley Water District (“Mediterra”)" and designate two improvement areas within the District (each, an "Improvement Area" and collectively, the "Improvement Areas") pursuant to Chapter 2.5 (commencing with Section 53311), Part 1, Division 2, Title 5, of the Government Code of the State of California, commonly known as the "Mello- Roos Community Facilities Act of 1982", to include all of the Property. 3. The boundaries of the territory which is proposed for inclusion in the District and each Improvement Area are those depicted in Exhibit A and Exhibit B hereto. 4. The Applicant requests that the proposed District be used to finance i) water and sewer connection fees and ii) construction, purchase, modification, expansion and/or improvement of certain infrastructure needed for new development, such as sewer, water, and appurtenances and appurtenant work that are used by EVWD to construct infrastructure (the "Facilities"), and to finance the incidental expenses to be incurred therein, including: (a) The cost of engineering, planning and designing Facilities and appurtenances; (b) All costs, including costs of the Applicant associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and (c) Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities. 5. The Applicant further requests that the Board authorize the levy of special taxes in each Improvement Area to pay the costs of the Facilities and the incidental costs described in paragraph 4 above and to pay principal of, interest and premium, if any, on the bonds in order to contribute to the financing of the Facilities and costs described in paragraph 4 above. 6. The Applicant further requests that, upon the sale of bonds for an Improvement Area, the Board, as legislative body of the District, annually levy special taxes on the property within the Improvement Area for the construction, acquisition and rehabilitation of the Facilities, for the 2 payment of the aggregate amount of principal of and interest owing on the bonds in each fiscal year, including the maintenance of reserves therefor, and for the payment of administrative expenses of the District. 7.The Applicant further agrees to advance to EVWD the amounts necessary to pay for the costs related to the formation of the District pursuant to the terms of that certain Reimbursement Agreement by and between EVWD and the Applicant relating to the District, which amounts will be reimbursed, without interest, from the proceeds of the sale of the bonds, if any, and the special taxes collected by the District. If bonds are not sold, or special taxes are not collected, EVWD will have no obligation to reimburse amounts expended for costs incurred, but will reimburse any unexpended amounts advanced by the Applicant as set forth in the Reimbursement Agreement. Dated: September 20, 2021 Greenspot Corridor, LLC a California limited liability company By: Name: Camille G. Bahri Title: Manager V I C I N I T Y M A P PROPOSED BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2021-1 (MEDITERRA) OF THE EAST VALLEY WATER DISTRICT FILED IN THE OFFICE OF THE CLERK OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT THIS __________ DAY OF _________________ 2021 . _______________________________________ CLERK OF THE BOARD OF DIRECTORS EAST VALLEY WATER DISTRICT I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED BOUNDARIES OF COMMUNITY FACILITIES DISTRICT 2021-1 (MEDITERRA) OF THE EAST VALLEY WATER DISTRICT, CITY OF HIGHLAND, SAN BERNARDINO COUNTY, STATE OF CALIFORNIA, WAS APPROVED BY THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT AT A REGULAR MEETING THEREOF, HELD ON THE _________ DAY OF ___________, 2021 , BY ITS RESOLUTION NO. ______________ _______________________________________ CLERK OF THE BOARD OF DIRECTORS EAST VALLEY WATER DISTRICT THIS MAP HAS BEEN FILED UNDER THE DOC. NO. ____________________, THIS ________ DAY OF _______________ 2021, AT ___________ M, IN BOOK ____ OF _____________________________________ AT PAGES ____ , AT THE REQUEST OF _____________________________________________ IN THE AMOUNT OF $ ______________ . BOB DUTTON ASSESSOR-RECORDER COUNTY OF SAN BERNARDINO BY:_________________________________________ DEPUTY RECORDER REFERENCE IS MADE TO TRACT MAP 18893-1 RECORDED ON August 31, 2021 AS DOCUMENTNUMBER 2021-0393892. REFERENCE IS MADE TO TRACT MAP 18893-2 RECORDED ON August 31, 2021 AS DOCUMENTNUMBER 2021-0393893. THE LINES AND DIMENSIONS OF EACH LOT OR PARCEL SHOWN ON THIS DIAGRAM SHALL BE THOSE LINES AND DIMENSIONS AS SHOWN ON THE SAN BERNARDINO COUNTY ASSESSOR'S MAPS FOR THOSE PARCELS LISTED. THE SAN BERNARDINO COUNTY ASSESSORS MAPS SHALL GOVERN FOR ALL THE DETAILS CONCERNING THE LINES AND DIMENSIONS OF SUCH LOTS OF PARCELS. CITY OF HIGHLAND COUNTY OF SAN BERNARDINO STATE OF CALIFORNIA SHEET 1 of 4 DATE PREPARED: SEPTEMBER 2021 334 Via Vera Cruz Suite 256 San Marcos, California 92078 Phone (760) 510-0290 Fax (760) 510-0288 N N.T.S. 1 MAP REF. NO. COUNTY OF SAN BERNARDINO GR E E N S P O T R D LEGEND PROPOSED BOUNDARY IMPROVEMENT AREA 1 IMPROVEMENT AREA 2 ZONE - 1A ZONE - 1B ZONE - 2A ZONE - 2B EXHIBIT "A" PROPOSED BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2021-1 (MEDITERRA) OF THE EAST VALLEY WATER DISTRICT CITY OF HIGHLAND COUNTY OF SAN BERNARDINO STATE OF CALIFORNIA SHEET 2 of 4 PROPOSED BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2021-1 (MEDITERRA) OF THE EAST VALLEY WATER DISTRICT CITY OF HIGHLAND COUNTY OF SAN BERNARDINO STATE OF CALIFORNIA SHEET 3 of 4 PROPOSED BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2021-1 (MEDITERRA) OF THE EAST VALLEY WATER DISTRICT CITY OF HIGHLAND COUNTY OF SAN BERNARDINO STATE OF CALIFORNIA SHEET 4 of 4 EXHIBIT "B" East Valley Water District Resolution 2021.14 Page 1 of 2 RESOLUTION NO. 2021.14 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 MEDITERRA 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 Greenspot Corridor, LLC, a California limited liability company (“Sunland”), to establish a community facilities district to aid in the development of the Mediterra 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 $90,000 in order for the District to consider the establishment of a community facilities district; and WHEREAS, Sunland has delivered a check to the District in the amount of $90,000 (the “Deposit”) in furtherance of Sunland’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. 2021-1 (Mediterra) of the East Valley Water District (the “Agreement”) with Sunland to govern the District’s application of the Deposit; and WHEREAS, there has been presented to the Board a copy of the Agreement; 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 East Valley Water District Resolution 2021.14 Page 2 of 2 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. Section 4. Effect. This Resolution shall take effect immediately. ADOPTED this 13th day of October 2021. ROLL CALL VOTE: Ayes: Directors: Noes: Abstain: Absent: ___________________________________ David E. Smith Board President ATTEST: John Mura Secretary, Board of Directors October 13, 2021 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2021.14 adopted by the Board of Directors of East Valley Water District at its Regular Board Meeting held October 13, 2021. John Mura Secretary, Board of Directors 4841-2362-6955v4/022497-0017 REIMBURSEMENT AGREEMENT RE FORMATION OF PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2021-1 (MEDITERRA) OF EAST VALLEY WATER DISTRICT THIS REIMBURSEMENT AGREEMENT RE FORMATION OF PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2021-1 (MEDITERRA) OF EAST VALLEY WATER DISTRICT (this “Agreement”) dated as of October 13, 2021 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 GREENSPOT CORRIDOR, LLC, a California limited liability company (the “Owner”). RECITALS A. The Owner is developing the Mediterra project within the District and has requested, together with Forestar (USA) Real Estate Group Inc., a Delaware corporation, that the District establish a community facilities district (the “CFD”) encompassing the Mediterra 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 has advanced to the District a sum totaling $90,000 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. 2 4841-2362-6955v4/022497-0017 (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 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: Greenspot Corridor, LLC 10575 Oakdale Drive Rancho Cucamonga, CA 91730 Attention: Camille Bahri 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 u nder 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. 3 4841-2362-6955v4/022497-0017 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. 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 4841-2362-6955v4/022497-0017 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: GREENSPOT CORRIDOR, LLC, a California limited liability company By: Name: Title: East Valley Water District Resolution 2021.15 Page 1 of 6 RESOLUTION NO. 2021.15 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2021-1 (MEDITERRA) OF EAST VALLEY WATER DISTRICT, AND IMPROVEMENT AREA NOS. 1 AND 2 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 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 and hereby accepts a joint petition from Greenspot Corridor, LLC, a California limited liability company, an owner of properties within the territory that is described in Exhibit A (the “Property”), to establish Community Facilities District No. 2021-1 (Mediterra) of East Valley Water District (the “Community Facilities District”) and Improvement Area Nos. 1 and 2 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 $16,500,000 for the Community Facilities District, including $8,000,000 for Improvement Area No. 1, and $8,500,000 for Improvement Area No. 2 (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 2021.15 Page 2 of 6 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. 2021-1 (Mediterra) of East Valley Water District.” Section 4. Types of Facilities to be Financed by the Community Facilities District. The Facilities that are described in Exhibit B and 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 East Valley Water District Resolution 2021.15 Page 3 of 6 rate and method of apportionment of special taxes (each, a “Rate and Method”) and manner of collection of the special tax for each Improvement Area is described in detail in Exhibits C-1 and C-2, which attachments are incorporated herein by this reference. Exhibits C-1 and C-2 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 and C-2 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 and C-2, 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 December 8, 2021, 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 East Valley Water District Resolution 2021.15 Page 4 of 6 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. 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 hereby 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 $16,500,000 for the Community Facilities District, including $8,000,000 for Improvement Area No. 1, and $8,500,000 for Improvement Area No. 2. 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. East Valley Water District Resolution 2021.15 Page 5 of 6 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). 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. ADOPTED this 13th day of October 2021. ROLL CALL VOTE: Ayes: Directors: Noes: Abstain: Absent: ___________________________________ David E. Smith Board President ATTEST: John Mura Secretary, Board of Directors East Valley Water District Resolution 2021.15 Page 6 of 6 October 13, 2021 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2021.15 adopted by the Board of Directors of East Valley Water District at its Regular Board Meeting held October 13, 2021. John Mura Secretary, Board of Directors A-1 4850-9814-3179v5/022497-0017 EXHIBIT A DESCRIPTION OF THE PROPOSED COMMUNITY FACILITIES DISTRICT AND IMPROVEMENT AREA NOS. 1 AND 2 THEREIN A-2 4850-9814-3179v5/022497-0017 A-3 4850-9814-3179v5/022497-0017 A-4 4850-9814-3179v5/022497-0017 B-1 4850-9814-3179v5/022497-0017 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. C-1-1 4850-9814-3179v5/022497-0017 EXHIBIT C-1 RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2021-1 (MEDITERRA) OF EAST VALLEY WATER DISTRICT (IMPROVEMENT AREA NO. 1) September 28, 2021 1 Community Facilities District No. 2021-1 (Mediterra) IA No. 1 East Valley Water District COMMUNITY FACILITIES DISTRICT NO. 20 2 1 -1 (MEDITERRA ) 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”) of Community Facilities District No. 2021-1 (Mediterra), (“CFD No. 2021-1”) of the East Valley Water District (“Water District”) and collected each Fiscal Year commencing in Fiscal Year 2021/2022 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 or portion of for 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. “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. September 28, 2021 2 Community Facilities District No. 2021-1 (Mediterra) IA No. 1 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) and 3.B (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. 2021-1 (Mediterra) of East Valley Water District” recorded in the Official Records of the County that distinguishes the boundaries of IA No. 1 from the other improvement area. “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. 2021-1” means Community Facilities District No. 2021-1 (Mediterra) of the Water District. “City” means the City of Highland, 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. September 28, 2021 3 Community Facilities District No. 2021-1 (Mediterra) IA No. 1 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 Water District or his/her designee. “Improvement Area No. 1” or “IA No. 1” means Improvement Area No. 1 of CFD No. 2021-1, as identified on the Boundary Map for CFD No. 2021-1, as in effect on the date of formation of CFD No. 2021-1, 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 and Table 2 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. September 28, 2021 4 Community Facilities District No. 2021-1 (Mediterra) IA No. 1 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. 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 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. September 28, 2021 5 Community Facilities District No. 2021-1 (Mediterra) IA No. 1 East Valley Water District “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. 2021-1, or its designee. “Zone A” means a geographic area identified as IA No. 1 Zone A consisting of Lots 1 thru 88 and 671 thru 680 of Tract Map No. 18893-1, and as identified on the Boundary Map for CFD No. 2021-1, as in effect on the date of formation of CFD No. 2021-1, and as may thereafter be amended in accordance with the Act. “Zone B” means a geographic area identified as IA No. 1 Zone B consisting of Lots 89 thru 139 of Tract Map No.18893-2 , and as identified on the Boundary Map for CFD No. 2021-1, as in effect on the date of formation of CFD No. 2021-1, and as may thereafter be amended in accordance with the Act. 2. LAND USE CLASSIFICATION Each Fiscal Year, beginning with Fiscal Year 2021/2022, each Assessor’s Parcel within the boundaries of IA No. 1 shall be classified as Zone A or Zone B and further 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 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; September 28, 2021 6 Community Facilities District No. 2021-1 (Mediterra) IA No. 1 East Valley Water District 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 in Zone A The Maximum Special Tax applicable to an Assessor’s Parcel classified as Developed Property in IA No. 1 Zone A for Fiscal Year 2021/2022 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 Zone A Assigned Special Tax Rates Fiscal Year 2021/2022 Land Use Class Building Square Footage Assigned Special Tax 1 Less than 2,300 Sq. Ft. $2,044 per Residential Unit 2 2,300 to 2,499 Sq. Ft. $2,110 per Residential Unit 3 2,500 to 2,699 Sq. Ft. $2,125 per Residential Unit 4 2,700 to 2,899 Sq. Ft. $2,140 per Residential Unit 5 Greater than 2,899 Sq. Ft. $2,155 per Residential Unit Each July 1, commencing July 1, 2022, 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. i. 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 September 28, 2021 7 Community Facilities District No. 2021-1 (Mediterra) IA No. 1 East Valley Water District Assessor’s Parcel of Undeveloped Property for Fiscal Year 2021/2022 shall be $12,324 per Acre or portion thereof for Zone A. Each July 1, commencing July 1, 2022, 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. ii. Provisional Undeveloped Property The Maximum Special Tax for Provisional Undeveloped Property for Fiscal Year 2021/2022 shall be $12,324 per Acre or portion thereof for Zone A. Each July 1, commencing July 1, 2022, 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. B. Developed Property in Zone B The Maximum Special Tax applicable to an Assessor’s Parcel classified as Developed Property in IA No. 1 Zone A for Fiscal Year 2021/2022 shall be the greater of (i) the Assigned Special Tax determined pursuant to Table 2 below or (ii) the amount derived by application of the Backup Special Tax. Table 2 IA No. 1 Zone B Assigned Special Tax Rates Fiscal Year 2021/2022 Land Use Class Building Square Footage Assigned Special Tax 1 Less than 2,100 Sq. Ft. $2,029 per Residential Unit 2 2,100 to 2,299 Sq. Ft. $2,044 per Residential Unit 3 Greater than 2,299 Sq. Ft. $2,059 per Residential Unit Each July 1, commencing July 1, 2022, 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. i. 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 September 28, 2021 8 Community Facilities District No. 2021-1 (Mediterra) IA No. 1 East Valley Water District Assessor’s Parcel of Undeveloped Property for Fiscal Year 2021/2022 shall be $12,554 per Acre or portion thereof for Zone B. Each July 1, commencing July 1, 2022, 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. ii. Provisional Undeveloped Property The Maximum Special Tax for Provisional Undeveloped Property for Fiscal Year 2021/2022 shall be $12,554 per Acre or portion thereof for Zone B. Each July 1, commencing July 1, 2022, 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 2021/2022, 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 in Zone A and B 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 September 28, 2021 9 Community Facilities District No. 2021-1 (Mediterra) IA No. 1 East Valley Water District 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. 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: “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) September 28, 2021 10 Community Facilities District No. 2021-1 (Mediterra) IA No. 1 East Valley Water District 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. “IA No. 1 Public Facilities Costs” means $4,836,658 in 2021 dollars, which shall increase by the Construction Inflation Index (as defined above) on July 1, 2022, 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. “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. 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 September 28, 2021 11 Community Facilities District No. 2021-1 (Mediterra) IA No. 1 East Valley Water District 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: 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. September 28, 2021 12 Community Facilities District No. 2021-1 (Mediterra) IA No. 1 East Valley Water District 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. 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. September 28, 2021 13 Community Facilities District No. 2021-1 (Mediterra) IA No. 1 East Valley Water District 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 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. September 28, 2021 14 Community Facilities District No. 2021-1 (Mediterra) IA No. 1 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 2071/2072. 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 16.94 Acres in Zone A and 8.30 Acres in Zone B. 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 16.94 Acres in Zone A and 8.30 Acres in Zone B 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 September 28, 2021 15 Community Facilities District No. 2021-1 (Mediterra) IA No. 1 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. C-2-1 4850-9814-3179v5/022497-0017 EXHIBIT C-2 RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2021-1 (MEDITERRA) OF EAST VALLEY WATER DISTRICT (IMPROVEMENT AREA NO. 2) September 28, 2021 1 Community Facilities District No. 2021-1 (Mediterra) IA No. 2 East Valley Water District COMMUNITY FACILITIES DISTRICT NO. 20 2 1 -1 (MEDITERRA ) 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”) of Community Facilities District No. 2021-1 (Mediterra), (“CFD No. 2021-1”) of the East Valley Water District (“Water District”) and collected each Fiscal Year commencing in Fiscal Year 2021/2022 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 or portion of for 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. September 28, 2021 2 Community Facilities District No. 2021-1 (Mediterra) 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) and 3.B (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. 2021-1 (Mediterra) of East Valley Water District” recorded in the Official Records of the County that distinguishes the boundaries of IA No. 2 from the other improvement area. “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. 2021-1” means Community Facilities District No. 2021-1 (Mediterra) of the Water District. “City” means the City of Highland, 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. September 28, 2021 3 Community Facilities District No. 2021-1 (Mediterra) 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 Water District or his/her designee. “Improvement Area No. 2” or “IA No. 2” means Improvement Area No. 2 of CFD No. 2021-1, as identified on the Boundary Map for CFD No. 2021-1, as in effect on the date of formation of CFD No. 2021-1, 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 and Table 2 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. September 28, 2021 4 Community Facilities District No. 2021-1 (Mediterra) 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. September 28, 2021 5 Community Facilities District No. 2021-1 (Mediterra) 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. 2021-1, or its designee. “Zone A” means a geographic area identified as IA No. 2 Zone A consisting of APN 0297-021-31-0000, and as identified on the Boundary Map for CFD No. 2021-1, as in effect on the date of formation of CFD No. 2021-1, and as may thereafter be amended in accordance with the Act. “Zone B” means a geographic area identified as IA No. 2 Zone B consisting of APN 0297-051-27-0000, and as identified on the Boundary Map for CFD No. 2021-1, as in effect on the date of formation of CFD No. 2021-1, and as may thereafter be amended in accordance with the Act. 2. LAND USE CLASSIFICATION Each Fiscal Year, beginning with Fiscal Year 2021/2022, each Assessor’s Parcel within the boundaries of IA No. 2 shall be classified as Zone A or Zone B and further 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; September 28, 2021 6 Community Facilities District No. 2021-1 (Mediterra) IA No. 2 East Valley Water District 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 in Zone A The Maximum Special Tax applicable to an Assessor’s Parcel classified as Developed Property in IA No. 2 Zone A for Fiscal Year 2021/2022 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 Zone A Assigned Special Tax Rates Fiscal Year 2021/2022 Land Use Class Building Square Footage Assigned Special Tax 1 Less than 2,500 Sq. Ft. $2,583 per Residential Unit 2 2,500 to 2,699 Sq. Ft. $2,623 per Residential Unit 3 2,700 to 2,899 Sq. Ft. $2,663 per Residential Unit 4 2,900 to 3,099 Sq. Ft. $2,704 per Residential Unit 5 3,100 to 3,299 Sq. Ft. $2,760 per Residential Unit 4 3,300 to 3,499 Sq. Ft. $2,816 per Residential Unit 5 Greater than 3,499 Sq. Ft. $2,872 per Residential Unit Each July 1, commencing July 1, 2022, 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. i. Backup Special Tax and Undeveloped Property Maximum Special Tax September 28, 2021 7 Community Facilities District No. 2021-1 (Mediterra) IA No. 2 East Valley Water District 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 2021/2022 shall be $14,408 per Acre or portion thereof for Zone A. Each July 1, commencing July 1, 2022, 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. ii. Provisional Undeveloped Property The Maximum Special Tax for Provisional Undeveloped Property for Fiscal Year 2021/2022 shall be $14,408 per Acre or portion thereof for Zone A. Each July 1, commencing July 1, 2022, 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. B. Developed Property in Zone B The Maximum Special Tax applicable to an Assessor’s Parcel classified as Developed Property in IA No. 2 Zone A for Fiscal Year 2021/2022 shall be the greater of (i) the Assigned Special Tax determined pursuant to Table 2 below or (ii) the amount derived by application of the Backup Special Tax. Table 2 IA No. 2 Zone B Assigned Special Tax Rates Fiscal Year 2021/2022 Land Use Class Building Square Footage Assigned Special Tax 1 Less than 1,700 Sq. Ft. $1,740 per Residential Unit 2 1,700 to 1,899 Sq. Ft. $1,774 per Residential Unit 3 1,900 to 2,099 Sq. Ft. $1,851 per Residential Unit 3 Greater than 2,099 Sq. Ft. $1,891 per Residential Unit Each July 1, commencing July 1, 2022, 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. i. Backup Special Tax and Undeveloped Property Maximum Special Tax September 28, 2021 8 Community Facilities District No. 2021-1 (Mediterra) IA No. 2 East Valley Water District 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 2021/2022 shall be $29,278 per Acre or portion thereof for Zone B. Each July 1, commencing July 1, 2022, 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. ii. Provisional Undeveloped Property The Maximum Special Tax for Provisional Undeveloped Property for Fiscal Year 2021/2022 shall be $29,278 per Acre or portion thereof for Zone B. Each July 1, commencing July 1, 2022, 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 2021/2022, 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 in Zone A and B 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 September 28, 2021 9 Community Facilities District No. 2021-1 (Mediterra) IA No. 2 East Valley Water District 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. 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: “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. September 28, 2021 10 Community Facilities District No. 2021-1 (Mediterra) IA No. 2 East Valley Water District “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. “IA No. 2 Public Facilities Costs” means $5,753,847 in 2021 dollars, which shall increase by the Construction Inflation Index (as defined above) on July 1, 2022, 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. “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 September 28, 2021 11 Community Facilities District No. 2021-1 (Mediterra) IA No. 2 East Valley Water District 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: 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 September 28, 2021 12 Community Facilities District No. 2021-1 (Mediterra) IA No. 2 East Valley Water District 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. 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 September 28, 2021 13 Community Facilities District No. 2021-1 (Mediterra) IA No. 2 East Valley Water District 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 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 September 28, 2021 14 Community Facilities District No. 2021-1 (Mediterra) IA No. 2 East Valley Water District 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. 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 2071/2072. 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 12.64 Acres in Zone A and 6.11 Acres in Zone B. 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 12.64 Acres in Zone A and 6.11 Acres in Zone B 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 September 28, 2021 15 Community Facilities District No. 2021-1 (Mediterra) IA No. 2 East Valley Water District 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. East Valley Water District Resolution 2021.16 Page 1 of 3 RESOLUTION NO. 2021.16 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT TO INCUR BONDED INDEBTEDNESS WITHIN COMMUNITY FACILITIES DISTRICT NO. 2021-1 (MEDITERRA) OF EAST VALLEY WATER DISTRICT AND IMPROVEMENT AREA NOS. 1 AND 2 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 Greenspot Corridor, LLC, a California limited liability company (“Sunland”) to establish a community facilities district to aid in the development of the Mediterra property; and WHEREAS, upon receipt of the request from Sunland 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. 2021-1 (Mediterra) of East Valley Water District (the “Community Facilities District”) and Improvement Area Nos. 1 and 2 therein (each an “Improvement Area” and, together, the “Improvement Areas”) with boundaries coterminous with the property described in Exhibit A to Resolution No. 2021.15 (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 $16,500,000 for the Community Facilities District, including $8,000,000 for Improvement Area No. 1 and $8,500,000 for Improvement Area No. 2 and, 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. East Valley Water District Resolution 2021.16 Page 2 of 3 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 $16,500,000 for the Community Facilities District, including $8,000,000 for Improvement Area No. 1 and $8,500,000 for Improvement Area No. 2, 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 December 8, 2021, 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 East Valley Water District Resolution 2021.16 Page 3 of 3 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. ADOPTED this 13th day of October 2021. ROLL CALL VOTE: Ayes: Directors: Noes: Abstain: Absent: ___________________________________ David E. Smith Board President ATTEST: John Mura Secretary, Board of Directors October 13, 2021 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2021.16 adopted by the Board of Directors of East Valley Water District at its Regular Board Meeting held October 13, 2021. John Mura Secretary, Board of Directors Agenda Item #4b October 13, 20211 2 0 2 Meeting Date: October 13, 2021 Agenda Item #4b Discussion Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Authorization to Transfer Unclaimed Funds into the District’s General Fund RECOMMENDATION Staff recommends that the Board of Directors (Board) review and authorize the Chief Financial Officer (CFO) to perform procedures prescribed in the Government Code and Code of Civil Procedure for the purpose of unencumbering stale-dated checks and keeping the related funds from escheating to the State. BACKGROUND / ANALYSIS The District’s checking account accumulates a long list of old, outstanding checks as a result of customer refunds relating to the closing of water accounts and paid vendors who failed to cash their check. All of the old checks make the reconciliation of the checking account unnecessarily cumbersome. Government Code sections 50050-50052 and Code of Civil Procedures section 1502(a)(2) describe the procedure to apply to unclaimed funds that are at least three years old. The procedure involves publishing a notice about the unclaimed funds once a week for two consecutive weeks in a paper of general circulation. Any claims that are submitted as a result of the notice will be investigated and approved or rejected by the CFO. Any funds remaining unclaimed 45 days after the first publication may be transferred to the District’s General Fund. Government Code section 50055 states that unclaimed funds of $15.00 or less that have been held by the District for more than one year do not need to be publicly noticed but may be transferred into the District’s General Fund by simple action of the Board. Staff recommends that the Board authorize the CFO to write off all stale-dated checks that are more than one year old and are less than $15.00 (attached Schedule A totaling $63.92). Staff is also requesting authorization to publish a notice regarding all stale-dated checks that are more than $15.00 and are more than three years old (attached Schedule B totaling $1,354.57) in the San Bernardino Sun newspaper for the purpose of satisfying the requirements of the Government Code. Agenda Item #4b October 13, 20212 2 0 2 Meeting Date: October 13, 2021 Agenda Item #4b Discussion Item AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department and Finance and Human Resources Committee. FISCAL IMPACT The fiscal impact associated with this agenda item is $1,418.49 and could be converted from a liability to Unrestricted Net Assets by following Government Code procedures to write off the checks listed on Attachments A and B. Recommended by: ________________ John Mura General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS 1. Schedule A 2. Schedule B SCHEDULE A UNCLAIMED CHECKS UNDER $15 & ONE YEAR OR OLDER PAYMENT DATE NUMBER VENDOR NAME AMOUNT 09/15/2020 256720 HORIZON2010 ENTERPRISE $12.52 07/24/2020 256518 JOSEPH LAVERTY JR 14.61 05/27/2020 256229 JASON HAMPTON 6.37 05/27/2020 256232 INVESTNOTIC, LLC 3.51 04/29/2020 256117 MANUEL HERNADEZ 4.44 04/22/2020 256100 CHEYENNE DIXON 6.39 04/01/2020 255996 ANGEL CEDENO 3.53 02/26/2020 255796 RAYMOND SAENZ 1.29 01/10/2020 255551 GLENN O NEAL 4.08 12/20/2019 255500 JOHN O'GRADY 7.18 TOTAL $63.92 Page 1 of 1 SCHEDULE B UNCLAIMED CHECKS $15 AND OVER & THREE YEARS OR OLDER PAYMENT DATE NUMBER VENDOR NAME AMOUNT 09/04/2018 252908 MARIA GARCIA $51.64 08/29/2018 252867 NANCY AMAYA 141.13 08/29/2018 252868 CAL HOMES GROUP INC.35.96 08/29/2018 252871 ERIK SANCHEZ 58.56 07/16/2018 252622 ANDRE ANDERSON 58.74 07/03/2018 252549 TAWIAH FINLEY 43.95 06/04/2018 252390 JESUS AGUILAR II 54.06 05/21/2018 252313 JESUS HINOJOS 43.03 03/29/2018 252031 KEENA JOHNSON 60.69 03/29/2018 252033 DUNG LE 41.64 02/28/2018 251854 LORENZO FRANCO 51.20 02/28/2018 251861 BRIAN GUNN 100.00 02/14/2018 251788 JOE BIXLER 21.02 02/14/2018 251789 CRISOSTOMO ANIAG 48.30 01/18/2018 251643 MICHELLE MORENO 47.31 01/03/2018 251532 RICHARD ANHAEUSER 56.49 12/12/2017 251461 REGINA DUNCAN 20.82 12/06/2017 251414 FELICIA BEDFORD 22.20 12/06/2017 251420 GEORGETTE HARRIS 30.31 11/20/2017 251377 NATASHA HEMMINGS 100.00 11/15/2017 251309 BESTLINE TIRE & AUTO 43.04 11/08/2017 251268 REALTY ONE GROUP 34.00 10/26/2017 251180 MARTHA A ROJAS 50.54 10/18/2017 251145 MANUEL DURAZO 139.94 TOTAL $1,354.57 Page 1 of 1 Agenda Item #4c October 13, 20211 1 8 5 Meeting Date: October 13, 2021 Agenda Item #4c Discussion Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Adoption of Resolution 2021.18 - Imagine a Day Without Water RECOMMENDATION Staff recommends that the Board of Directors Adopt Resolution 2021.18 recognizing the "Imagine A Day Without Water" Campaign being held on October 21, 2021. BACKGROUND / ANALYSIS The District provides reliable water service to over 103,000 residents each and every day, with the extensive operational effort typically unseen by community members. Imagine a Day Without Water is a national education campaign that brings together diverse stakeholders to highlight how water is essential, invaluable, and in need of investment. By simply considering how a single day would be impacted if water were not available, residents have a personal connection to the benefits of reliable systems. Given current COVID-19 restrictions, the District plans to celebrate this day with specific social media posts showcasing the dynamic process of providing safe drinking water. This effort engages the community by highlighting the importance of infrastructure investments and technological innovation to sustain drinking water and wastewater systems for generations to come. AGENCY GOALS AND OBJECTIVES III - Deliver Public Service With Purpose While Embracing Continuous Growth C. Promote a Positive Organizational Culture REVIEW BY OTHERS This agenda item has been reviewed by the Public Affairs Department. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Agenda Item #4c October 13, 20212 1 8 5 Meeting Date: October 13, 2021 Agenda Item #4c Discussion Item Recommended by: ________________ John Mura General Manager/CEO Respectfully submitted: ________________ Kelly Malloy Director of Strategic Services ATTACHMENTS Resolution 2021.18 RESOLUTION 2021.18 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT RECOGNIZING THE “IMAGINE A DAY WITHOUT WATER” CAMPAIGN BEING HELD ON OCTOBER 21, 2021 BE IT HEREBY RESOLVED, by the Board of Directors of the East Valley Water District (“District”) recognizing the “Imagine a Day Without Water” campaign being held October 21, 2021, which is an organized effort to highlight the critical importance of reliable access to clean water in our lives and the investment in infrastructure that is necessary to protect this valuable resource. Whereas, the infrastructure that brings water to and from homes and businesses is essential to the quality of life and economic vitality for the community; and Whereas, residents on average utilize 55 gallons of water per person, per day; and Whereas, the District has 300 miles of pipelines and 15 wells; and Whereas, utilities nationwide are grappling with aging infrastructure; and Whereas, managing water responsibly is critical to our nation’s environmental health and to a high quality of life through economic commerce, power generation, and recreation; and Whereas, investing in our drinking water and wastewater systems will secure a bright and prosperous future for generations to come; and Whereas, innovation in water conservation and water reuse will support job growth and establish a 21st century paradigm of water management in the United States; and Whereas, different regions face different water challenges, so the solutions to strengthen our drinking water and wastewater systems must be locally driven, but reinvestment in our water must be a national priority; NOW, THEREFORE, BE IT RESOLVED, that East Valley Water District recognizes water is essential to the quality of life and acknowledges the importance of educating the public about the value of water through the “Imagine a Day Without Water” campaign. * * * * * The foregoing resolution was duly adopted at a meeting of the Board of Directors of the East Valley Water District upon motion duly made, seconded and carried on October 13, 2021. ADOPTED this 13th day of October 2021. Ayes: Noes: Absent: Abstain: David E. Smith Board President I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2021.18 adopted by the Board of Directors of East Valley Water District at its regular meeting held October 13, 2021. John Mura Secretary Agenda Item #4c October 13, 20211 1 9 3 Meeting Date: October 13, 2021 Agenda Item #4c Discussion Item Regular Board Meeting TO: Governing Board Members FROM: John Mura, General Manager/CEO SUBJECT: Consider Adoption of Resolution 2021.20 Participation in the Great California ShakeOut. RECOMMENDATION Staff recommends that the Board of Directors Adopt Resolution 2021. 20 recognizing the District's participation in the Great California ShakeOut. BACKGROUND / ANALYSIS On October 21, 2021 at 10:21 a.m. the District will be participating in the Great Shakeout. The Great ShakeOut is an annual opportunity to practice how to respond during a major earthquake, this year the District will be highlighting the unique considerations caused by the COVID-19 response. The 2021 event currently has over 5.1 million participants in California including residents, communities, and organizations. This is an opportunity to review emergency preparedness plans, improve response skills, and take steps to minimize damage and injuries during an earthquake event. This statewide event is incorporated in the District's quarterly emergency drill schedule for staff. This event will facilitate an earthquake drill, test the audible alarm system, utilize the telephone intercom system, evaluate the visitor check in procedure, test the satellite phones, and evacuate the facility to the secondary staging area. Staff is recommending that the Board adopt Resolution 2021.20 recognizing the District's participation in the Great California ShakeOut. AGENCY GOALS AND OBJECTIVES III - Deliver Public Service With Purpose While Embracing Continuous Growth A. Advance Emergency Preparedness Efforts FISCAL IMPACT There is no fiscal impact associated with this agenda item. Agenda Item #4c October 13, 20212 1 9 3 Meeting Date: October 13, 2021 Agenda Item #4c Discussion Item Recommended by: ________________ John Mura General Manager/CEO Respectfully submitted: ________________ Kelly Malloy Director of Strategic Services ATTACHMENTS Resolution 2021.20 East Valley Water District Resolution 2021.20 Page 1 of 2 RESOLUTION NO. 2021.20 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT PARTICIPATION IN THE GREAT CALIFORNIA SHAKEOUT AND WORK TOWARD BECOMING A SAFER COMMUNITY WHEREAS, the Board of Directors of the East Valley Water District (the “District”) recognizes that no community is immune from natural hazards and recognizes the importance of reducing human suffering, property damage, interruption of public services and economic losses caused by those hazards; and WHEREAS, major earthquakes pose a particular, significant, and ongoing threat within the service area of the District; and WHEREAS, the District has a responsibility to promote earthquake preparedness internally as well as with the public and plan appropriately for earthquake-related disasters; and WHEREAS, the protection of District employees will allow them to facilitate the continuity of government and assist the public following a major earthquake event; and WHEREAS, community resiliency to earthquakes and other disasters depends on the preparedness levels of all stakeholders in the community – individuals, families, schools, community organizations, faith-based organizations, non-profits, businesses, and government; and WHEREAS, by participating in The Great California ShakeOut on October 21, 2021, the District had the opportunity to join and support all Californians in strengthening community and regional resiliency; and WHEREAS, by supporting The Great California ShakeOut, the District can utilize the event information to educate its residents regarding actions to protect life and property, including mitigating structural and non-structural hazards and participating in earthquake drills; and WHEREAS, by officially registering for the Great California ShakeOut, District employees participated in the ShakeOut “Drop Cover and Hold on” earthquake drill on October 21 at 10:21 a.m. BE IT FURTHER RESOLVED that this Resolution approves participation in the Great California Shakeout hereto by taking time to recognize and acknowledge the importance East Valley Water District Resolution 2021.20 Page 2 of 2 of preparing our District for the purposes of building a safer community and reducing the loss of lives and property from a major earthquake event by taking proactive steps today. ADOPTED this 13th day of October 2021 Ayes: Noes: Absent: Abstain: David E. Smith, Board President October 13, 3021 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2021.10 adopted by the Board of Directors of East Valley Water District as its Regular Meeting held October 13, 2021. John Mura, Secretary, Board of Directors Agenda Item #4e October 13, 20211 2 0 9 Meeting Date: October 13, 2021 Agenda Item #4e Discussion Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Adoption of Resolution 2021.19 - Findings and Determinations Regarding Teleconference Meetings RECOMMENDATION Staff recommends that the Board of Directors consider adoption of Resolution 2021.19, Findings and Determinations Regarding Teleconference Meetings. BACKGROUND / ANALYSIS Since March 2020, the COVID-19 pandemic has required new levels of flexibility and adaptability. The District continues to adjust operations to incorporate additional safety procedures and social distancing practices consistent with local health official guidance. In 2020, the District declared a local state of emergency, due to the COVID-19 pandemic and the impacts that it had on the ability to safely serve the public. Maintaining the health and safety of staff and the public while continuing to provide world class services remains a top priority. State and federal officials have called for individuals to stay at home whenever possible to slow the spread of COVID-19. As part of this effort the State of California included the declaration of a statewide emergency and the issuance of an executive order to suspend portions of the Ralph M. Brown Act location noticing requirements, easing the ability for public agencies to hold virtual, or teleconference, meetings. This adjustment allows for continued public engagement in the policy making process, while allowing for social distancing. Since executive orders are only valid for a maximum of 180 days, this process was only allowed temporarily. The advancement of hosting platforms for virtual meetings that are easily accessible to the public have greatly improved over the last year. Given the broad range of emergencies that can occur in California, the maintenance of government transparency through virtual meetings has emerged as a long-term response measure. AB 361 codified the ability for government agencies to hold virtual meetings in the event of a declared emergency in order to continue conducting official business. The allowance of teleconference meeting in place of an “in-person” setting applies in emergencies like public health that require social distancing, earthquake, wildfire, and other natural or manmade emergencies. When an agency needs to implement teleconference meetings, they Governing Board must adopt a Resolution of Findings and Determinations. Agenda Item #4e October 13, 20212 2 0 9 Meeting Date: October 13, 2021 Agenda Item #4e Discussion Item Given the on-going call to slow the spread of COVID-19, there is a health and safety needs to maintain virtual meetings as allowed by law for the next 30 days. If a need exists beyond that point in time a new resolution would be presented to the Governing Board for consideration for each 30-day period after that. Notice of meetings and posted agendas would continue to contain information which allow members of the public to access the meeting and address the Board of Directors and offer public comment including an opportunity for all persons to attend via a call-in option or an internet-based service option. Staff is requesting that the Board adopt a Resolution of Findings and Determinations to utilize the protocols allowed by AB 361. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability D. Provide Quality Information to Encourage Community Engagement REVIEW BY OTHERS This agenda item has been reviewed by Public Affairs, Administration and legal counsel. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ John Mura General Manager/CEO Respectfully submitted: ________________ Kelly Malloy Director of Strategic Services ATTACHMENTS Resolution 2021.19 Resolution re Findings and Determinations Regarding Teleconference Meetings No. 2021-x-x Page 1 of 3 RESOLUTION NUMBER 2021- X-X A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT MAKING CERTAIN FINDINGS AND DETERMINATIONS REGARDING SPECIAL RULES FOR CONDUCTING MEETINGS THROUGH TELECONFERENCE WHEREAS, East Valley Water District (“EVWD”) is a county water district established pursuant to Section 30000 et seq. of the California Water Code; and WHEREAS, all meetings of the Board of Directors of EVWD are conducted in open and public settings in compliance with the Ralph M. Brown Act (Brown Act) so that any member of the public may attend, participate and watch the District’s Board of Directors conduct their business; and WHEREAS, on March 24, 2020, the Governor declared a state of emergency pursuant to Government Code 8625 due to the COVID-19 pandemic and has recommended, together with local officials, measures for social distancing to assist in abating the spread of COVID-19; and WHEREAS, on March 12, 2020, the Governor issued Executive Order N-29-20 which, among other things, suspended certain Brown Act rules governing the use of teleconferencing of local agency board meetings; and WHEREAS, on September 20, 2021, the Governor issued Executive Order N-15-21 which, extended certain Brown Act rules governing the use of teleconferencing of local agency board meetings and to clarify the transition from the Executive Order to the rules adopted in AB 361; and WHEREAS, Executive Order N-15-21 expired on October 1, 2021; and WHEREAS, the California legislature has enacted, and the Governor has signed into law, AB 361 amending portions of Government Code 54953, allowing for the continued use of teleconferencing for local agency board meetings while suspending the conditions and restrictions of Government Code 54953(b)(3) if the legislative body of the local agency makes certain findings; NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the East Valley Water District hereby make the following findings and determinations: SECTION 1. The Governor has proclaimed a state of emergency on March 24, 2020 which continues. Resolution re Findings and Determinations Regarding Teleconference Meetings No. 2021-x-x Page 2 of 3 SECTION 2. The Governor and local officials have promoted the use of social distancing as a method to abate the spread of COVID-19 within the community. The Board of Directors finds that conducting in person meetings of the EVWD Board of Directors would be inimical to social distancing and would present imminent risks to the health or safety of the attendees and conducting meetings by teleconference would diminish that risk. SECTION 3. The Board of Directors will continue to conduct Board meetings by teleconference in compliance with Government Code 54953(e) until such time as the Governor has terminated the state of emergency and the risk to health and safety of meeting attendees is sufficiently diminished or as otherwise required by law. Notice of meetings and posted agendas will contain information which allow members of the public to access the meeting and address the Board of Directors and offer public comment including an opportunity for all persons to attend via a call-in option or an internet-based service option. SECTION 4.This Resolution shall take effect immediately upon its adoption and shall be effective for 30 days or until such time as the Board of Directors adopts a subsequent resolution in accordance with Government Code 54953(e)(3) to extend the time during which meetings of the Board of Directors may be conducted by teleconference without compliance with Government Code 54953(3)(b). ADOPTED this 13th day of October, 2021, __________________________________________ ATTEST: ______________________________________ (SEAL) Resolution re Findings and Determinations Regarding Teleconference Meetings No. 2021-x-x Page 3 of 3 STATE OF CALIFORNIA ) ) COUNTY OF SAN BERNARDINO ) I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2021.XX adopted by the Board of Directors of East Valley Water District at its Regular Meeting held October 13, 2021. ATTEST: _____________________________ John Mura Board Secretary (SEAL) * Agenda Item #4e October 13, 20211 1 9 9 Meeting Date: October 13, 2021 Agenda Item #4e Discussion Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Board Meeting Cancellations RECOMMENDATION Staff recommends that the Board of Directors consider the following Board meeting changes: 1. Cancel the regular board meeting scheduled for November 24, 2021; and 2. Cancel the regular board meeting scheduled for December 22, 2021 BACKGROUND / ANALYSIS East Valley Water District’s regular board meetings occur on the 2nd and 4th Wednesdays of each month. Staff is recommending that the Board of Directors approve the cancellation of the November 24, 2021 due to it falling the day before the Thanksgiving holiday closure and the December 22, 2021 regular meetings due to it falling the day before the winter holiday closure. These cancellations will not impact District operations and routine items are being scheduled accordingly. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by the Administration Department. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Agenda Item #4e October 13, 20212 1 9 9 Meeting Date: October 13, 2021 Agenda Item #4e Discussion Item Recommended by: ________________ John Mura General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS No Attachments