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HomeMy WebLinkAboutAgenda Packet - Finance & Human Resources Committee - 10/05/2021FINANCE & HUMAN RESOURCES COMMITTEE OCTOBER 5, 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. COMMITTEE MEMBERS Phillip Goodrich Governing Board Member James Morales Jr. Governing Board Member Finance & Human Resources Committee October 05, 2021 ­ 3:30 PM 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: 308 612 348# 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 PLEDGE OF ALLEGIANCE 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. 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. 1.Approve the August 10, 2021 Finance and Human Resources Committee Meeting Minutes INFORMATIONAL ITEMS 2.Review Authorization to Transfer Unclaimed Funds into the District’s General Fund 3.Review the Community Facilities District (CFD) Petition and Resolutions 2021.14, 2021.15, and 2021.16 to Facilitate Establishment of CFD No. 2021­1 for Mediterra REPORTS 4.Staff Comments ADJOURN FINANCE & HUMAN RESOURCES COMMITTEEOCTOBER 5, 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.COMMITTEE MEMBERS Phillip Goodrich Governing Board Member James Morales Jr. Governing Board Member Finance & Human Resources Committee October 05, 2021 ­ 3:30 PM 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: 308 612 348# 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 PLEDGE OF ALLEGIANCE 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. 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. 1.Approve the August 10, 2021 Finance and Human Resources Committee Meeting Minutes INFORMATIONAL ITEMS 2.Review Authorization to Transfer Unclaimed Funds into the District’s General Fund 3.Review the Community Facilities District (CFD) Petition and Resolutions 2021.14, 2021.15, and 2021.16 to Facilitate Establishment of CFD No. 2021­1 for Mediterra REPORTS 4.Staff Comments ADJOURN FINANCE & HUMAN RESOURCES COMMITTEEOCTOBER 5, 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.COMMITTEE MEMBERSPhillip GoodrichGoverning Board Member James Morales Jr.Governing Board MemberFinance & Human Resources CommitteeOctober 05, 2021 ­ 3:30 PM31111 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: 308 612 348#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 PLEDGE OF ALLEGIANCE 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. 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. 1.Approve the August 10, 2021 Finance and Human Resources Committee Meeting Minutes INFORMATIONAL ITEMS 2.Review Authorization to Transfer Unclaimed Funds into the District’s General Fund 3.Review the Community Facilities District (CFD) Petition and Resolutions 2021.14, 2021.15, and 2021.16 to Facilitate Establishment of CFD No. 2021­1 for Mediterra REPORTS 4.Staff Comments ADJOURN Agenda Item #1 October 5, 20211 1 9 4 Meeting Date: October 5, 2021 Agenda Item #1 Consent Item Regular Meeting TO: Committee Members FROM: Chief Financial Officer SUBJECT: Approve the August 10, 2021 Finance and Human Resources Committee Meeting Minutes RECOMMENDATION Staff recommends that the Finance and Human Resources Committee 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. ATTACHMENTS August 10, 2021 Minutes Page 1 of 2 Minutes 08/10/21 cmk Subject to Approval EAST VALLEY WATER DISTRICT August 10, 2021 FINANCE AND HUMAN RESOURCES COMMITTEE MEETING MINUTES Ms. Koide called the meeting to order at 3:30 p.m. and Director Morales led the flag salute. PRESENT: Directors: Goodrich, Morales ABSENT: None STAFF: Kerrie Bryan, Director of Administrative Services; Christi Koide, Senior Administrative Assistant GUEST(s): Members of the public PUBLIC COMMENTS The Senior Administrative Assistant declared the public participation section of the meeting open at 3:32 p.m. There being no written or verbal comments, the public participation section was closed. APPROVE THE MARCH 9, 2021 FINANCE AND HUMAN RESOURCES COMMITTEE MEETING MINUTES M/S/C (Morales-Goodrich) by unanimous roll call vote to approve the March 9, 2021 Finance and Human Resources Committee meeting minutes as submitted. APPROVE THE JUNE 8, 2021 FINANCE AND HUMAN RESOURCES COMMITTEE MEETING MINUTES M/S/C (Goodrich-Morales) by unanimous roll call vote to approve the June 8, 2021 Finance and Human Resources Committee meeting minutes as submitted. REVIEW THE STUDENT INTERNSHIP PROGRAM POLICY The Director of Administrative Services gave a brief overview of the Student Internship Program. She stated that funds for implementation, including unpaid micro-internships, are allocated and were approved by the Governing Board at Budget adoption on June 23, 2021. In addition, the Director of Administrative Services stated the following: the District will cover the costs for Worker’s Compensation Insurance for paid and unpaid Interns; Page 2 of 2 Minutes 08/10/21 cmk Background checks are completed by the college or the District; and pre-employment physicals may be required for Interns, depending on job responsibilities. She stated the Policy will be presented to the Governing Board on August 25, 2021 for approval. Information only. ADJOURN The meeting adjourned at 3:47 p.m. James Morales, Jr. Phillip R. Goodrich Governing Board Member Governing Board Member Agenda Item #2 October 5, 20211 1 9 6 Meeting Date: October 5, 2021 Agenda Item #2 Discussion Item Regular Meeting TO: Committee Members FROM: Chief Financial Officer SUBJECT: Review Authorization to Transfer Unclaimed Funds into the District’s General Fund RECOMMENDATION This agenda item is for informational purposes only, no action required. 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 #2 October 5, 20212 1 9 6 Meeting Date: October 5, 2021 Agenda Item #2 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. 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. 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 #3 October 5, 20211 1 9 5 Meeting Date: October 5, 2021 Agenda Item #3 Discussion Item Regular Meeting TO: Committee Members FROM: Chief Financial Officer SUBJECT: Review the Community Facilities District (CFD) Petition and Resolutions 2021.14, 2021.15, and 2021.16 to Facilitate Establishment of CFD No. 2021-1 for Mediterra RECOMMENDATION This agenda item is for informational purposes only, no action required. 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 owners petition for formation of a CFD was delivered to the City 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 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 Agenda Item #3 October 5, 20212 1 9 5 Meeting Date: October 5, 2021 Agenda Item #3 Discussion Item 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 and Legal Counsel. Agenda Item #3 October 5, 20213 1 9 5 Meeting Date: October 5, 2021 Agenda Item #3 Discussion Item FISCAL IMPACT There is no fiscal impact associated with this agenda item. ATTACHMENTS 1. EVWD Presentation 2. Owner’s Petition 3. Resolution 2021.14 a. Reimbursement Agreement 4. Resolution 2021.15 5. Resolution 2021.16 October 5, 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) 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) 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