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HomeMy WebLinkAboutAgenda Packet - Finance & Human Resources Committee - 08/25/2022FINANCE & HUMAN RESOURCES COMMITTEE AUGUST 25, 2022 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 David E. Smith Governing Board Member James Morales Jr. Governing Board Member Finance & Human Resources Committee Meeting August 25, 2022 ­ 4:00 PM 31111 Greenspot Road, Highland, CA 92346 www.eastvalley.org 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 February 8, 2022 Finance and Human Resources Committee Meeting Minutes 2.Approve the March 1, 2022 Finance and Human Resources Committee Meeting Minutes 3.Approve the May 16, 2022 Finance and Human Resources Committee Meeting Minutes INFORMATIONAL ITEMS 4.Review the Community Facilities District (CFD) Petition and Resolutions 2022.14, 2022.15, and 2022.16 to Facilitate Establishment of CFD No. 2022­1 (Palm & Highland) REPORTS ADJOURN FINANCE & HUMAN RESOURCES COMMITTEEAUGUST 25, 2022East 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 David E. Smith Governing Board Member James Morales Jr. Governing Board Member Finance & Human Resources Committee Meeting August 25, 2022 ­ 4:00 PM 31111 Greenspot Road, Highland, CA 92346 www.eastvalley.org 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 February 8, 2022 Finance and Human Resources Committee Meeting Minutes 2.Approve the March 1, 2022 Finance and Human Resources Committee Meeting Minutes 3.Approve the May 16, 2022 Finance and Human Resources Committee Meeting Minutes INFORMATIONAL ITEMS 4.Review the Community Facilities District (CFD) Petition and Resolutions 2022.14, 2022.15, and 2022.16 to Facilitate Establishment of CFD No. 2022­1 (Palm & Highland) REPORTS ADJOURN FINANCE & HUMAN RESOURCES COMMITTEEAUGUST 25, 2022East 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 MEMBERSDavid E. SmithGoverning Board Member James Morales Jr.Governing Board MemberFinance & Human Resources Committee MeetingAugust 25, 2022 ­ 4:00 PM31111 Greenspot Road, Highland, CA 92346www.eastvalley.orgPLEASE 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 February 8, 2022 Finance and Human Resources Committee Meeting Minutes 2.Approve the March 1, 2022 Finance and Human Resources Committee Meeting Minutes 3.Approve the May 16, 2022 Finance and Human Resources Committee Meeting Minutes INFORMATIONAL ITEMS 4.Review the Community Facilities District (CFD) Petition and Resolutions 2022.14, 2022.15, and 2022.16 to Facilitate Establishment of CFD No. 2022­1 (Palm & Highland) REPORTS ADJOURN Agenda Item #1 August 9, 20221 4 8 5 Meeting Date: August 9, 2022 Agenda Item #1 Consent Item Regular Meeting TO: Committee Members FROM: Chief Financial Officer SUBJECT: Approve the February 8, 2022 Finance and Human Resources Committee Meeting Minutes RECOMMENDATION Staff recommends that the Finance and Human Resources Committee approve the minutes as submitted. 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. Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS February 8, 2022 Minutes Page 1 of 2 Minutes 2/8/22 cmk 5 1 8 Draft pending approval EAST VALLEY WATER DISTRICT February 8, 2022 FINANCE & HUMAN RESOURCES COMMITTEE MEETING MINUTES Ms. Koide called the meeting to order at 3:32 p.m. and Director Smith led the flag salute. PRESENT: Directors: Morales, Smith ABSENT: None STAFF: Brian Tompkins, Chief Financial Officer; Ryan Ritualo, Information Technology Manager; Rudy Guerrero, Finance Supervisor; 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 3:33 p.m. There being no written or verbal comments, the public participation section was closed. APPROVAL OF CONSENT CALENDAR 1. Approval of November 30, 2021 Finance and Human Resources Meeting Minutes 2. Approval of December 7, 2021 Finance and Human Resources Meeting Minutes A motion was made by Director Smith, seconded by Director Morales, that the Committee approve the Consent Calendar as submitted. The motion carried by the following: Ayes: Morales, Smith Noes: None Absent: None Page 2 of 2 Minutes 2/8/22 cmk 5 1 8 DISCUSS PROFESSIONAL AUDIT SERVICES 2022 The Chief Financial Officer provided a brief overview of the Request for Proposal process and stated the top three firms will be taken to the next Committee meeting for review. Information only. REVIEW COMMUNITY FACILITIES DISTRICT (CFD) ADMINISTRATION SERVICES PROPOSAL The Chief Financial Officer gave a brief overview of the procurement procedures followed during the Highland Hills and Mediterra CFD Formation. The Committee reviewed the proposal for Administration Services provided by Koppel & Gruber Public Finance (KGPF) that will be taken to the next Board meeting for approval. Information only. DISCUSSION AND POSSIBLE ACTION ITEMS The Committee discussed and agreed to meet on the second Tuesday of each month at 4:00 p.m. ADJOURN The meeting adjourned at 3:55 p.m. James Morales, Jr. David E. Smith Governing Board Member Governing Board Member Agenda Item #2 May 16, 20221 4 0 3 Meeting Date: May 16, 2022 Agenda Item #2 Consent Item Regular Meeting TO: Committee Members FROM: Chief Financial Officer SUBJECT: Approve the March 1, 2022 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. Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS March 1, 2022 Minutes Page 1 of 1 Minutes 3/1/22 cmk 5 2 4 Draft pending approval EAST VALLEY WATER DISTRICT March 1, 2022 FINANCE & HUMAN RESOURCES COMMITTEE MEETING MINUTES Ms. Koide called the meeting to order at 4:00 p.m. and Director Smith led the flag salute. PRESENT: Directors: Goodrich, Morales ABSENT: None STAFF: Brian Tompkins, Chief Financial Officer; Rudy Guerrero, Finance Supervisor; 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 4:02 p.m. There being no written or verbal comments, the public participation section was closed. DISCUSS CONTRACT AWARD FOR PROFESSIONAL AUDIT SERVICES The Chief Financial Officer gave a brief overview of how a three-person committee scored and reviewed the six Requests for Proposals (RFPs) received for professional auditing services. Directors Morales and Smith support staff’s recommendation to engage Rogers, Anderson, Malody & Scott (RAMS) to perform audit services for the District during the next three years, and will present a contract to the Board for consideration. Information only. ADJOURN The meeting adjourned at 4:23 p.m. James Morales, Jr. David E. Smith Governing Board Member Governing Board Member Agenda Item #3 August 9, 20221 Meeting Date: August 9, 2022 Agenda Item #3 Consent Item 4 8 8 Regular Meeting TO: Committee Members FROM: Chief Financial Officer SUBJECT: Approve the May 16, 2022 Finance and Human Resources Committee Meeting Minutes RECOMMENDATION Staff recommends that the Finance and Human Resources Committee approve the minutes as submitted. 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. Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS May 16, 2022 Minutes Page 1 of 2 Minutes 5/16/22 etb 5 2 3 Draft pending approval EAST VALLEY WATER DISTRICT May 16, 2022 FINANCE & HUMAN RESOURCES COMMITTEE MEETING MINUTES Ms. Bateman called the meeting to order at 4:00 p.m. and Mr. Tompkins led the flag salute. PRESENT: Directors: Morales, Smith ABSENT: None STAFF: Brian Tompkins, Chief Financial Officer; Kerrie Bryan, Director of Administrative Services; Rudy Guerrero, Finance Supervisor; Eileen Bateman, Human Resources Coordinator GUEST(s): Members of the public PUBLIC COMMENTS The Human Resources Coordinator declared the public participation section of the meeting open at 4:02 p.m. There being no written or verbal comments, the public participation section was closed. REVIEW LETTER REGARDING AUDITOR RESPONSIBILITIES AND PLANNING DOCUMENT FROM ROGERS, ANDERSON, MALODY & SCOTT, LLP FOR PREPARATION OF THE DISTRICT’S FY 2021-22 AUDIT The Chief Financial Officer introduced Scott Manno, CPA partner from Rogers, Anderson, Malody & Scott. Mr. Manno provided a detailed overview of the letter and outlined the responsibilities of the District and the Accounting Firm for the FY 2021-22 Audit. Information only. DISCUSS THE MEMORANDUM OF UNDERSTANDING SIDE LETTER OF AGREEMENT BETWEEN THE EAST VALLEY WATER DISTRICT AND THE EAST VALLEY WATER DISTRICT PARTNERSHIP The Director of Administrative Services provided information regarding the Juneteenth Holiday and Retiree health reimbursement update to be included as a side letter of the represented employee agreement. Information only. Page 2 of 2 Minutes 5/16/22 etb 5 2 3 REPORTS There were no reports at this time. ADJOURN The meeting adjourned at 4:38 p.m. James Morales, Jr. David E. Smith Governing Board Member Governing Board Member Agenda Item #4 August 9, 20221 4 8 9 Meeting Date: August 9, 2022 Agenda Item #4 Informational Item Regular Meeting TO: Committee Members FROM: Chief Financial Officer SUBJECT: Review the Community Facilities District (CFD) Petition and Resolutions 2022.14, 2022.15, and 2022.16 to Facilitate Establishment of CFD No. 2022-1 (Palm & Highland) RECOMMENDATION This agenda item is for informational purposes only, no action required. BACKGROUND / ANALYSIS In June of 2022, the owners of the Palm & Highland project, on the Northwest corner of the intersection of these two streets, deposited $70,000 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). Staff deposited the $70,000 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 Palm & Highland project. The property owner’s petition, and three related Resolutions are attached. Summaries of the Resolutions are as follows: Resolution 2022.14 – A Resolution of EVWD approving execution of a Reimbursement Agreement Related to the Palm & Highland CFD: 1. Reimbursement Agreement – Specifies a $70,000 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. Resolution 2022.15 – A Resolution of EVWD declaring the District’s intention to establish CFD 2022-1 (Palm & Highland), and 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 Agenda Item #4 August 9, 20222 4 8 9 Meeting Date: August 9, 2022 Agenda Item #4 Informational Item 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 November 9, 2022; and •a financing team for issuing CFD debt. Resolution 2022.16 – A Resolution of EVWD to incur Bonded Indebtedness within CFD No. 2022-1 (Palm & Highland). This Resolution establishes the not to exceed amount for a CFD bond issue at $4.0 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 Palm & Highland 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 November 9, 2022, Regular Board Meeting to consider adoption of a Resolution of Formation for CFD 2022-1. 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 Bond Counsel. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Agenda Item #4 August 9, 20223 4 8 9 Meeting Date: August 9, 2022 Agenda Item #4 Informational Item Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS 1. Owner's Petition 2. Resolution 2022.14 a. Reimbursement Agreement 3. Resolution 2022.15 4. Resolution 2022.16 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. 2022-1 OF THE EAST VALLEY WATER DISTRICT (PALM & HIGHLAND) 1.The undersigned (the “Applicant”) owns at least 10% 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. 2022-1 of the East Valley Water District (Palm & Highland) (the “District”) 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 are those depicted in Exhibit A hereto and described in 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 the District 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, the Board, as legislative body of the District, annually levy special taxes on the property within the District for the construction, acquisition and rehabilitation of the Facilities, for the 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 dated as of August 24, 2022, 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 1 4868-1699-8950v3/022497-0018 EXHIBIT A See the attached boundary map. A- 1 4868-1699-8950v3/022497-0018 V I C I N I T Y M A P PROPOSED BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2022-1 (PALM & HIGHLAND) 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 _________________ 2022. _______________________________________ CLERK OF THE BOARD OF DIRECTORS EAST VALLEY WATER DISTRICT I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED BOUNDARIES OF COMMUNITY FACILITIES DISTRICT 2022-1 (PALM & HIGHLAND) OF THE EAST VALLEY WATER DISTRICT, CITY OF SAN BERNARDINO, 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 ___________, 2022 , 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 _______________ 2022, AT ___________ M, IN BOOK ____ OF _____________________________________ AT PAGE ____ , AT THE REQUEST OF _____________________________________________ IN THE AMOUNT OF $ ______________ . BOB DUTTON ASSESSOR-RECORDER COUNTY OF SAN BERNARDINO BY:_________________________________________ DEPUTY RECORDER 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 SAN BERNARDINO COUNTY OF SAN BERNARDINO STATE OF CALIFORNIA SHEET 1 of 1 DATE PREPARED: JULY 2022 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. LEGEND PROPOSED BOUNDARY CITY OF SAN BERNARDINO MAP REF. NO.ASSESSOR'S PARCEL NO. 1 0285-211-05-0000 2 0285-211-21-0000 3 0285-211-22-0000 4 0285-211-23-0000 5 0285-211-25-0000 210 CITY OF HIGHLAND B-1 4868-1699-8950v3/022497-0018 EXHIBIT B County of San Bernardino Assessor’s Parcel Number 0285-211-05 County of San Bernardino Assessor’s Parcel Number 0285-211-21 County of San Bernardino Assessor’s Parcel Number 0285-211-22 County of San Bernardino Assessor’s Parcel Number 0285-211-23 County of San Bernardino Assessor’s Parcel Number 0285-211-25 East Valley Water District Resolution 2022.14 Page 1 of 2 RESOLUTION NO. 2022.14 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 PALM & HIGHLAND 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 Warmington Residential California, Inc., a California corporation (“Warmington Residential”), to establish a community facilities district to aid in the development of the Palm & Highland 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 $70,000 in order for the District to consider the establishment of a community facilities district; and WHEREAS, Warmington Residential has delivered a check to the District in the amount of $70,000 (the “Deposit”) in furtherance of Warmington Residential’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. 2022-1 (Palm & Highland) of the East Valley Water District (the “Agreement”) with Warmington Residential 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 limitation, the execution of East Valley Water District Resolution 2022.14 Page 2 of 2 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 14th day of September 2022. Ayes: Directors: Noes: Abstain: Absent: ___________________________________ Phillip R. Goodrich Board President ATTEST: Brian W. Tompkins Interim Board Secretary, Board of Directors September 14, 2022 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2022.14 adopted by the Board of Directors of East Valley Water District at its Regular Board Meeting held September 14, 2022. Brian W. Tompkins Interim Board Secretary, Board of Directors 1 REIMBURSEMENT AGREEMENT RE FORMATION OF PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2022-1 (PALM & HIGHLAND) OF EAST VALLEY WATER DISTRICT THIS REIMBURSEMENT AGREEMENT RE FORMATION OF PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2022-1 (PALM & HIGHLAND) OF EAST VALLEY WATER DISTRICT (this “Agreement”) dated as of September 14, 2022 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 WARMINGTON RESIDENTIAL CALIFORNIA, INC., a California corporation (the “Owner”). RECITALS A. The Owner is developing the Palm & Highland project within the District and has requested that the District establish a community facilities district (the “CFD”) encompassing the Palm & Highland 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 $70,000 to pay the District’s costs incurred related to the formation of the CFD. The Owner shall have the right to notify the District at any time, in writing, of its intention to abandon the formation of the CFD. Upon receipt of such notice, the District shall instruct its consultants to cease work as soon as practicable. The Owner shall be responsible to pay all costs and expenses incurred by the District or any District consultant or advisor prior to the date on which the District’s consultants are notified of the Owner’s notice of abandonment. (b) The District will provide to the Owner on request a summary of how the advances have been spent and the unexpended balance remaining. The amounts advanced by the Owner will be reimbursable to the Owner, without interest, from the proceeds of Bonds issued by the District when and if the Bonds are issued. In the event that Bonds are not issued to provide a source of reimbursement to the Owner, the District shall have no liability to the Owner to reimburse the Owner for any amounts which were previously advanced by the Owner and expended by the District in accordance with this Agreement. (c) In the event that the parties are continuing to work toward the formation of the CFD and the amount on deposit with the District falls below $5,000, the District shall request, and the Owner shall advance to the District within ten (10) business days of such request, an amount equal to 2 the District’s reasonable estimate of the remaining CFD formation costs that it will incur less the amount then on deposit with the District. 3. Reimbursement Procedure. If the CFD is formed, and following the sale of Bonds, the District shall reimburse the Owner the money advanced by the Owner to the District pursuant to Section 2 above within 30 days of receiving Bond proceeds. If the CFD is not formed, the District shall return any funds that have been advanced by the Owner and which are not expended for the purposes set forth in Section 2 above upon the completion or abandonment of the CFD formation. Such returned funds shall be without interest. 4. Notices. Any notice to be provided pursuant to this Agreement shall be delivered to the following addresses: Owner: Warmington Residential California, Inc. 3090 Pullman Street Costa Mesa, CA 92626 Attention: Mike Ouji District: East Valley Water District 31111 Greenspot Road Highland, CA 92346 Attention: General Manager With a copy to: Stradling Yocca Carlson & Rauth 660 Newport Center Drive, Suite 1600 Newport Beach, CA 92660 Attention: Cyrus Torabi, Esq. Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party. 5. Assignment. The Owner may not assign its interest in this Agreement to another party (the “New Owner”) without the prior written consent of the District, which shall not be unreasonably withheld or conditioned. In the event that the Owner has not been reimbursed under the terms of this Agreement prior to an assignment of this Agreement to a New Owner, if and when Bonds are sold, the District shall reimburse money advanced by the Owner to the Owner and shall reimburse money advanced by the New Owner, if any, to the New Owner. 6. Severability. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent permitted by law. 7. Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the matters provided for herein. 8. Amendments. This Agreement may be amended or modified only by written instrument signed by all parties. 9. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original. 3 10. Governing Law. This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California. 11. No Third Party Beneficiaries. No person or entity shall be deemed to be a third party beneficiary hereof, and nothing in this Agreement (either express or implied) is intended to confer upon any person or entity, other than the District and the Owner, any rights, remedies, obligations or liabilities under or by reason of this Agreement. 12. Singular and Plural; Gender. As used herein, the singular of any word includes the plural, and terms in the masculine gender shall include the feminine. [Signature Page Follows] S-1 IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written. EAST VALLEY WATER DISTRICT By: General Manager Date: WARMINGTON RESIDENTIAL CALIFORNIA, INC., a California corporation By: Name: Title: By: Name: Title: East Valley Water District Resolution 2022.15 Page 1 of 9 RESOLUTION NO. 2022.15 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2022-1 (PALM & HIGHLAND) OF EAST VALLEY WATER DISTRICT, 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 petition from Warmington Residential California, Inc., a California corporation, an owner of properties within the territory that is described in Exhibit A (the “Property”), to establish Community Facilities District No. 2022-1 (Palm & Highland) of East Valley Water District (the “Community Facilities District”) in order 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 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 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 the sale of bonds in an amount not to exceed $_____ for the Community Facilities District (the “Obligations”), and the levy of a special tax in the Community Facilities District 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 an election to be held for the Community Facilities District; 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. 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 with boundaries coterminous with the Property. It is further proposed that the boundaries of the Community Facilities District 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 East Valley Water District Resolution 2022.15 Page 2 of 5 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. 2022-1 (Palm & Highland) 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 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 to understand what the funds of the Community Facilities District 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, issuing bonds, levying and collecting a special tax within the Community Facilities District 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 the Community Facilities District secured by recordation of a continuing lien against all non-exempt real property in the Community Facilities District in an amount that is sufficient to pay for the Facilities and Incidental Expenses and the principal and interest and other periodic costs on bonds or other indebtedness issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of any reserve funds deemed necessary by the District, and any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash) attributable to the Community Facilities District. The rate and method of apportionment of special taxes (the “Rate and Method”) and manner of collection of the special tax for the Community Facilities District is described in detail in Exhibit C, which attachment is incorporated herein by this reference. Exhibit C allows each landowner within the Community Facilities District 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 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 the Community Facilities District be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the Community Facilities District 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 the Community Facilities District set forth in Exhibit C 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 East Valley Water District Resolution 2022.15 Page 3 of 5 ownership of real property. In the event that a portion of the property within the Community Facilities District shall become for any reason exempt, wholly or partially, from the levy of the special tax specified in the Rate and Method, 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 Rate and Method, to the extent necessary upon the remaining property within the Community Facilities District 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 Rate and Method set forth in Exhibit C, as such Rate and Method may be amended hereafter. Section 6. Public Hearing. A public hearing (the “Hearing”) on the establishment of the Community Facilities District, the proposed Rate and Method and the proposed issuance of bonds for the Community Facilities District to finance the Facilities and the Incidental Expenses shall be held at 5:30 p.m., or as soon thereafter as practicable, on November 9, 2022, at the District, 31111 Greenspot Road, Highland, California 92346. If the Board determines to form the Community Facilities District, special elections will be held to authorize the issuance of the bonds for the Community Facilities District 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 the Community Facilities District at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the Community Facilities District. 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 shall be established and whether special taxes shall be levied in accordance with the proposed Rate and Method, and whether Obligations 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 Community Facilities District, 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 Community Facilities District 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 Community Facilities District 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. East Valley Water District Resolution 2022.15 Page 4 of 5 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. 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 $_____. 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, the issuance of bonds thereby and the preparation of the Community Facilities District report required by Section 53321.5 of the Act. Stradling Yocca Carlson & Rauth, a Professional Corporation, is hereby appointed to act as bond counsel and special counsel with respect to the formation of the Community Facilities District and the bond issuances thereby. Section 12. Reservation of Rights. Except to the extent limited in any bond resolution or trust indenture related to the issuance of bonds, the Board hereby reserves to itself all rights and powers set forth in Section 53344.1 of the Act (relating to tenders in full or partial payment). 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 14th day of September 2022. Ayes: Directors: Noes: Abstain: Absent: ___________________________________ Phillip R. Goodrich Board President East Valley Water District Resolution 2022.15 Page 5 of 5 ATTEST: Brian W. Tompkins Interim Board Secretary, Board of Directors September 14, 2022 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2022.15 adopted by the Board of Directors of East Valley Water District at its Regular Board Meeting held September 14, 2022. Brian W. Tompkins Interim Board Secretary, Board of Directors A-1 EXHIBIT A DESCRIPTION OF THE PROPOSED COMMUNITY FACILITIES DISTRICT A-2 B-1 EXHIBIT B DESCRIPTION OF PUBLIC FACILITIES The proposed types of facilities and expense to be financed by the Community Facilities District include: [TO BE CONFIRMED] 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-2 EXHIBIT C-1 RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2022-1 (PALM & HIGHLAND) OF EAST VALLEY WATER DISTRICT East Valley Water District Resolution 2022.16 Page 1 of 3 RESOLUTION NO. 2022.16 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT TO INCUR BONDED INDEBTEDNESS WITHIN COMMUNITY FACILITIES DISTRICT NO. 2022-1 (PALM & HIGHLAND) OF EAST VALLEY WATER DISTRICT 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 Warmington Residential California, Inc., a California corporation (“Warmington Residential”) to establish a community facilities district to aid in the development of the Palm & Highland property (Tract No. 20495); and WHEREAS, upon receipt of the request from Warmington Residential 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. 2022-1 (Palm & Highland) of East Valley Water District (the “Community Facilities District”) with boundaries coterminous with the property described in Exhibit A to Resolution No. 2022.15 (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 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 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 $_____ for the Community Facilities District, 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 Community Facilities District, other than those properties exempted from taxation in the rate and method of apportionment set forth in Exhibit C to the Resolution of Intention; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the District as follows: Section 1. Findings. The Board hereby specifically finds and declares that each of the statements, findings and determinations of the District set forth in the above recitals and in the preambles of the documents approved herein are true and correct. Section 2. Necessity to Incur Indebtedness. It is necessary to incur bonded indebtedness within the boundaries of the Community Facilities District in an amount not to exceed $_____ for the Community Facilities District, 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 East Valley Water District Resolution 2022.16 Page 2 of 3 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 the Community Facilities District 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, the proposed rate and method of apportionment of special taxes for the Community Facilities District and the proposed issuance of bonds for the Community Facilities District to finance the Facilities and the Incidental Expenses shall be held at 5:30 p.m., or as soon thereafter as practicable, on November 9, 2022, 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, 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 Community Facilities District 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 Community Facilities District and a description of the proposed voting procedure for the elections required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing. Section 7. Other Actions. The President or Vice President of the Board or the General Manager or Chief Financial Officer of the District or the designee thereof and any other proper officers of the District, acting singly, are hereby authorized and directed to do any and all things and to execute and deliver any and all documents and certificates which such officers may deem necessary or advisable in order to effectuate the purposes of this Resolution, and such actions previously taken by such officers are hereby ratified and confirmed. Section 8. Effect. This Resolution shall take effect immediately. East Valley Water District Resolution 2022.16 Page 3 of 3 ADOPTED this 14th day of September 2022. Ayes: Directors: Noes: Abstain: Absent: ___________________________________ Phillip R. Goodrich Board President ATTEST: Brian W. Tompkins Interim Board Secretary, Board of Directors September 14, 2022 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2022.16 adopted by the Board of Directors of East Valley Water District at its Regular Board Meeting held September 14, 2022. Brian W. Tompkins Interim Board Secretary, Board of Directors