Beaumont City Council
May 16, 2023

FDAC
EBA

EMPLOYMENT BENEFITS AUTHORITY
TO: FDAC EBA Member Districts
FROM: Carmen Berry, FDAC EBA Executive Director
DATE: March 2, 2023
FRMS
Fire Risk Management Services
,01111111.1111
SUBJECT: AMENDED AND RESTATED JOINT POWERS AGREEMENT OF FIRE RISK MANAGEMENT SERVICES (formerly FDAC Employee Benefits Authority)
The Fire Districts Association of California Employment Benefits Association (FDAC EBA) and Fire Agencies Self Insurance System (FASIS) will consolidate, effective July 1, 2023, to form Fire Risk Management Services (FRMS). FRMS is a multi -line risk pool providing eligible fire districts and public agencies that provide emergency services employee benefits coverage and workers' compensation to eligible fire districts in California.

The FDAC EBA and FASIS Consolidation Advisory Committee has met regularly over the past twelve months to work toward streamlining the financial and administrative services via a consolidation of the two programs. At the Special Board of Directors Meeting on February 22, 2023, the FASIS and FDAC EBA Boards unanimously approved the FRMS Amended and Restated Joint Powers Agreement (JPA), effective July 1, 2023.

In accordance with the Joint Powers Agreement: Creating the FDAC Fire Benefits Authority, Article 14:
"This Joint Powers Agreement may be amended by an amendment in writing signed by two-thirds of the Agencies then parties to this Agreement." Attached is the Amended and Restated Joint Powers Agreement of the Fire Risk Management Services. The Agreement requires approval under Section 31: Execution in Counterparts and must be received in our office no later than June 20, 2023. Signatories to the Agreement will require approval from their respective governing bodies. To aid in this endeavor, attached are sample resolutions for use by either 1) members of FDAC EBA only; or 2) members of both FASIS and FDAC EBA. The sample resolutions allow for approval of the Agreement and authorize the designated executive officer to execute, thus enabling participation in FRMS, effective July 1, 2023.

Upon approval from your district's governing body, the Agreement under Section 31 (page 20) must be executed using one of the following options:

1. Original Signature: print Section 31 (page 20) of the Agreement, sign and return via USPS.

2. Electronic Signature - Email: print Section 31 (page 20) of the Agreement, sign, scan, and return via email.

3. Electronic Signature - Acrobat Sign: electronically access the Agreement, sign, and submit.

Serving the Workers' Compensation Insur nce Needs for Fire uistricts in California Since 1984

When utilizing options #1 or #2 above, please submit the executed Agreement via USPS, email, or fax to:

Melissa Feltz, FDAC EBA Coordinator
c/o SMA
808 R Street, Suite 209
Sacramento, CA 95811
FAX: (916) 231-2141
mfeltz@u,firebenefits.org
Your attention to this important matter is appreciated. If you have any questions or require additional information, please contact Melissa Feltz at (916) 231-2143 or [email protected].

Attachments:

1. Amended and Restated Joint Powers Agreement of Fire Risk Management Services

2. Sample Resolution Authorizing Participation in Fire Risk Management Services — FASIS

3. Sample Resolution Authorizing Participation in Fire Risk Management Services — FASIS &

FDAC EBA
Serving the Workers' Compensation Insu nQle s jorrl Sifricts in California Since 1984

AMENDED AND RESTATED JOINT POWERS AGREEMENT

OF FIRE RISK MANAGEMENT SERVICES
(Formerly Fire Agencies Self Insurance System (FASIS))
This Amended and Restated Joint Powers Agreement of Fire Risk Management Services ("FRMS") ("Agreement"), formerly known as the Fire Agencies Self Insurance System ("FASIS") is made and entered into by and among the public agencies organized and existing under the laws of the State of California who have or may hereafter execute this Joint Powers Agreement (the "Members") pursuant to the authority conferred by Government Code Section 6500 et seq.

RECITALS
WHEREAS, each of the Members who have executed this Agreement is a "public agency" as that term is defined in Section 6500 of the California Government Code; and WHEREAS, California Government Code Section 6500 et seq. provides that two or more public agencies may by agreement jointly exercise any power common to the contracting parties; and
WHEREAS, California Labor Code Section 3700 (c) authorizes public agencies, including members of a pooling arrangement under a joint powers authority, to fund and self -insure for their Worker's Compensation claims liability; and
WHEREAS, California Government Code Section 990.4 provides that a local public agency may self -insure, purchase insurance through an authorized carrier, purchase insurance through a surplus lines broker, or any combination of these; and WHEREAS, California Government Code Sections 989 and 990 authorize a local public agency to self -insure itself and its employees against tort and inverse condemnation liability; and WHEREAS, California Government Code Section 990.8 provides that two or more local public agencies may, by a joint powers agreement, provide insurance for any purpose by any one or more of the methods specified in Government Code Section 990.4; and WHEREAS, California Government Code Section 990.6 provides that the cost of such insurance or self-insurance is an authorized and appropriate expenditure of public funds; and WHEREAS, California Government Code Sections 53200, 53201(a), 53202, 53202.2, 65205, 53205.1, 53205.16, 53206, 53208 and Health and Safety Code Section 13800 et seq. provide that a local public agency may provide for any health and welfare benefits for the benefit of its existing and retired officers, employees, and members of its legislative body, which health and welfare benefits include, but are not limited to medical, hospital surgical, disability, legal expense, dental, vision, life, and income protection insurance or benefits, whether provided on an insurance basis, self -funded basis, or some combination of insurance and self -funding; and 1

WHEREAS, Government Code Section 53202 states that in providing such health and welfare benefits, a public agency may approve self -funded plans or may contract with one or more admitted insurers, health service organizations or legal service organizations for such plans of health and welfare benefits as the public agency determines to be in the best interest of the public agency and its existing and retired officers, employees and legislative body; and WHEREAS, Government Code Section 53205 provides that the legislative body of a public agency may expend public agency funds for the premiums, dues or other charges for health and welfare benefits of its existing and retired officers, employees, and members of its legislative body; and
WHEREAS, each of the Members which are parties to this Agreement desire to join together with other Members in order to collectively establish, operate, manage, administer and fund programs of insurance and/or self-insurance for workers' compensation benefits, employment benefits, general liability, property damage, and other coverages to be determined; and
WHEREAS, each of the Members which are parties to this Agreement find it to be to its mutual advantage and in the public benefit to utilize any power common to them, and all those powers available to a Joint Powers Authority pursuant to the Joint Powers Act at Government Code Section 6500 et seq. (the "Act"), to fulfill the purposes of this Agreement specified in Section 3 hereof, including establishing pools for self -insured losses and purchasing excess or re -insurance and administrative services in connection with the Joint Protection Programs (the "Coverage Programs") for the collective benefit of the Members; and WHEREAS, certain Members have previously executed that certain Amended Joint Powers Agreement of FASIS dated October 13, 2005 (the "FASIS JPA"), which agreement such Members desire to amend and restate by this Agreement; and WHEREAS, this Amendment and Restatement is intended to allow members of Fire Districts Association of California Employment Benefits Authority ("FDAC EBA") to join FRMS and share in consolidated administration and governance of programs by amending and restating its existing Joint Powers Agreement to this Agreement; and WHEREAS, the governing body of each Member has determined that it in the best interests of the Member, and in the public interest, to execute this Agreement and participate in FRMS as a Member;
WHEREAS, it is to the mutual advantage of and in the best interest of the parties to this Joint Powers Agreement to continue and expand this Joint Powers Authority for the purposes stated.

NOW THEREFORE, for and in consideration of all of the mutual benefits, covenants and agreements contained herein, the parties hereto agree as follows:
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SECTION 1:

DEFINITIONS
The following definitions shall apply to the provisions of this Agreement:

1. "Act" means Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the California Government Code, as amended.

2. "Administrator" shall mean the employee or third -party contractor who is appointed by the Board of Directors to manage the business and affairs of FRMS under the policy direction of the Board of Directors.

3. "Assessment" means an amount additional to a Member's initial contribution or annual contribution, which the Board of Directors determines, in accordance with this Agreement and/or the Bylaws, that a Member or Former Member owes on account of its participation in a Coverage Program for a given Program year.

4. "Board of Directors" or "Board" shall mean the governing body of FRMS.

5. "Bylaws" means the Bylaws of FRMS adopted by the Board of Directors, as they may be amended from time to time.

6. "Claim" shall mean a demand made by or against a Member or Former Member which is or may be covered by one of the Coverage Programs approved by the Board of Directors.

7. "Contribution" shall mean the amount determined by the Board of Directors to be the appropriate sum of money which a Member must pay at the commencement of or during a Program Year in exchange for the benefits provided by a Coverage Program.

8. "Coverage Program" shall mean the specific type of Joint Protection Program as set forth in the terms, conditions and exclusions of the Coverage Documents for insured or self - insured losses, and the purchasing of excess or re -insurance and administrative services with respect to such losses. On the effective date, FRMS will operate two (2) Coverage Programs, the Workers' Compensation Coverage Program for workers' compensation claims, and the Employment Benefits Coverage Program for claims related to medical, hospital surgical, disability, legal expense, dental, vision, life, and income protection insurance or benefits. FRMS may add additional programs later.

9. "Coverage Documents" shall mean the Declarations, Memorandum of Coverages, Coverage Agreements, Endorsements, Policies of Insurance or any other documents that provide the terms, conditions, limits and exclusions of coverage afforded by a Coverage Program.
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10. "District" shall mean a special district and political subdivision of the State of California as defined in Government Code Section 56000 et seq.

11. "Duly Constituted Board Meeting" shall mean any meeting of the Board of Directors noticed and held pursuant to the Ralph M. Brown Act and at which a quorum is determined to be present at the beginning of said meeting.

12. "Estimated Contribution" shall mean the amount which the Board of Directors estimates will be the appropriate contribution for a Member's participation in a Coverage Program for a Program Year.

13. "Excess or Re -Insurance" shall mean that insurance that may be purchased on behalf of FRMS and/or the Members to protect the funds of the Members or Former Members against catastrophic losses or an unusual frequency of losses in a particular Coverage Program during a Program Year in excess of any self -insured retention maintained by FRMS for that Coverage Program.

14. "Fiscal Year" shall mean that period of 12 months which is established by the Board of Directors as the fiscal year of FRMS.

15. "Former Member" shall mean a Member which was a signatory to this Agreement (or the prior FASIS Agreement) but which has withdrawn from, or been involuntarily terminated from participation in FMRS.

16. "Joint Protection Program" shall mean a Coverage Program offered by FRMS, separate and distinct from other Coverage Programs, wherein Members shall jointly pool their losses and claims, jointly purchase excess or re -insurance and administrative and other services including claims adjusting, data processing, risk management consulting and brokerage, loss prevention, legal, accounting and auditing and related services.

17. "Member" shall mean a public agency which has signed this Agreement, which qualifies as a Member under the provisions of this Agreement and the Bylaws, and which has been approved for membership by the Board of Directors.

18. "Memorandum of Coverage" shall mean a document issued by FRMS for each Coverage Program specifying the coverages and limits provided to the Members participating in that Coverage Program.

19. "Pooling" shall mean group self-insurance as permitted by Government Code Section 990.8, Labor Code Section 3700 and Government Code Section 53202.

20. "Program Year" shall mean a 12 -month period of time determined by the Board of Directors, during which a particular Coverage Program is in effect. 4

21. "Retained Earnings" shall mean an account reflecting the accumulated earnings of a Coverage Program after payment of all losses, expenses and obligations of that Coverage Program.

22. "Risk Management" shall mean the process of identifying, evaluating, reducing, transferring and eliminating risks. Risk Management includes, but is not limited to, various methods of funding claims payments, purchasing insurance, legal defense of claims, controlling losses, and determining self-insurance retention levels and the amount of reserves for potential claims.

SECTION 2:

FRMS AS SUCCESSOR TO AND EXPANSION OF FASIS
FASIS was originally formed on July 1, 1984, pursuant to the provisions of Government Code Section 6500 et seq. as a joint powers authority to provide a program of pooling of self -insured workers' compensation losses of its members, which members were defined as California fire protection districts formed and operating under the provisions of California Health and Safety Code Section 13800 et seq. and California community services districts providing fire suppression and emergency services formed and operating under the provisions of California Government Code Section 61000, et seq. FASIS has continued to provide this self-insurance program up to the effective date of this Agreement.

As of the effective date of this Agreement, the Fire Agencies Self Insurance System shall be known as Fire Risk Management Services, referred to herein as FRMS. Pursuant to Government Code Sections 6506 and 6507, from its inception, FRMS has, is, and shall be a public entity separate and independent from the Members which is governed exclusively by its Board of Directors ("Board").

FDAC EBA was originally formed on July 1, 2005, pursuant to the provisions of Government Code Section 6500 et seq. as a joint powers authority to provide employment benefits programs including medical, hospital surgical, disability, legal expense, dental, vision, life, and income protection insurance or benefits, whether provided on an insurance basis, self -funded basis, or some combination of insurance and self -funding, to any California public agency including special districts, cities, and joint powers authorities which were formed with the power to provide fire suppression and emergency services. FDAC EBA has continued to provide this employment benefits program up to the effective date of this Agreement.

This Agreement is being amended and restated in part to allow members of Fire Districts Association of California Employment Benefits Authority ("FDAC EBA") to join FRMS and share in consolidated administration and governance of programs. Accordingly, as of the effective date of this Agreement, the membership of FRMS shall consist of the members of FASIS, as well as the members of FDAC EBA that have approved this Agreement. Future membership in FRMS is open to public agencies throughout California that meet the membership requirements specified herein and in the Bylaws and are approved for membership by the Board of Directors. 5

SECTION 3:

PURPOSE
This Agreement is entered into by the Members pursuant to Government Code Sections 989, 990, 990.4, 990.6, 990.8, 52200 et seq., 6500 et seq. and Labor Code Section 3700, et seq., in order to provide, subject to the Coverage Documents, workers' compensation and employment benefits coverages, and/or coverages for other risks which the Board of Directors may determine.

Additional purposes of this Agreement are: (1) to reduce the amount and frequency of losses, and to decrease the costs incurred by Members in the handling and litigation of claims; (2) to expand the breadth and reduce the costs of health and welfare benefits including, but are not limited to medical, hospital, surgical, disability, legal expense, dental, vision, life, and income protection insurance or benefits, whether provided on an insurance basis, self -funded basis, or some combination of insurance and self -funding. These purposes shall be accomplished through the exercise of the powers of the Members jointly in the creation of a separate public entity, Fire Risk Management Services ("FMRS") to establish and administer Coverage Programs as set forth herein and in the Bylaws.

It is also the purpose of this Agreement to provide for the inclusion at subsequent dates of such additional Members organized and existing as California public agencies as may desire to become parties to this Agreement and Members of FRMS, subject to approval by the Board of Directors.

SECTION 4:

MEMBERSHIP
Each Member which is a party to this Agreement must be a public agency which is duly organized and existing under the laws of the State of California with the power to provide at least one of the following services: (1) fire suppression services, (2) emergency medical services, including emergency disease response, prevention and control services; (3) hazardous material response services (4) medical transport and/or ambulance services, including emergency transportation services (5) rescue services; (6) any other emergency response services provided pursuant to the California Emergency Services Act (Government Code Section 8550 et seq.). "Emergency" is defined as any condition of disaster or of extreme peril to the safety of persons and/or property caused by such conditions as air pollution, fire, flood, hazardous material incident, storm, epidemic, riot, drought, plant or animal infestations or disease, earthquake, terrorism, or sudden and severe energy shortage. Each Member must be approved for participation in the Authority in the manner provided in the Bylaws of the Authority.

There shall be two (2) classes of Membership: (1) Voting Members; and (2) Non -voting Members.

Voting Members shall be public agencies organized as a fire protection district formed and operating pursuant to the terms of California Health and Safety Code Section 13800 et seq. All other Members shall be Non -voting Members.

The rights and obligations of Voting Members shall be as described in the Bylaws. 6

SECTION 5:

PARTIES TO AGREEMENT
Each Member which has signed this Agreement certifies that it intends to and does contract with FRMS, and with all other parties who have signed this Agreement, and, in addition, with such other parties which may later be added as a party to and may sign this Agreement. Each party to this Agreement, which has or may hereafter sign this Agreement, also certifies that the withdrawal of any party from this Agreement by voluntary withdrawal, involuntary termination, or otherwise, shall not affect this Agreement nor such party's intent to contract with the other remaining parties to this Agreement.

SECTION 6:

TERM OF AGREEMENT
This Agreement shall become effective as to existing Members of FASIS on the later of July 1, 2023, or the date on which the last of two-thirds of such Members have executed this Agreement ("effective date"). This Agreement shall become effective as to existing Members of FDAC EBA on the later of Julyl, 2023 or the date on which two-thirds of its members have executed this Agreement.

This Agreement shall become effective as to each new Member upon: (1) approval of its membership by the Board of Directors of the FRMS; (2) execution of this Agreement by the new Member and by FRMS; and (3) by payment by the new Member of its initial contribution for participation in one of the Coverage Programs offered by the FRMS.

SECTION 7:

POWERS OF FRMS
FRMS shall have all the powers common to its Members and all additional powers set forth in the Joint Powers Authority Act, and is hereby authorized to do all acts necessary for the exercise of said common powers, including, but not limited to, any or all of the following:
(1)
to make and enter into contracts, including the power to accept the assignment of contracts or other obligations which relate to the purposes of FRMS, or which were entered into by a Member or Former Member prior to joining FRMS, and to acquire assets, incur liabilities, and resolve and make claims; (2) to accept an assignment from the FDAC EBA of all its assets, obligations and liabilities (including claims and contracts in existence at the time of consolidation) in order to benefit the Members and Former Members participating in the FDAC EBA employment benefits coverage program; provided, that except for the fair and equitable allocation of administrative and overhead expenses, funds from such assignment shall not be commingled and shall be separately accounted for as provided in this Agreement and the Bylaws;
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(3) to incur debts, liabilities or other obligations; including those which are not debts, liabilities or other obligations of the Members or Former Members, or any of them; (4) to charge and collect Contributions and Assessments from Members or Former Members for participation in a Coverage Program;
(5) to employ agents and employees and/or to contract for services from third -party consultants;
(6) to receive grants and donations of property, funds, services, and other forms of assistance from persons, firms, corporations and government entities; (7) to acquire, hold, lease or dispose of property, funds, contributions, donations, and any other forms of assistance from persons, firms, corporations and government entities; (8) to acquire property by gift, grant, exchange, devise, or purchase; (9) to hold, lease, convey, sell, encumber, or dispose of property; (10) to sue and to be sued in its own name;
(11) to issue or caused to be issue bonded and other indebtedness, and pledge any property or revenues as security to the extent permitted by law by Articles 2 and 4 of the Act or otherwise, including, but not limited to, bonds or other evidences of indebtedness issued on behalf of FRMS or its Members;
(12) to obtain in its own name all necessary permits, licenses, opinions and rulings; (13) whenever necessary to facilitate the exercise of its powers, to form and administer nonprofit corporations to perform one or more of the functions which FRMS is empowered to perform, or to perform any other proper corporate function, and to enter into agreements with such nonprofit corporations;
(14) to exercise all powers necessary and proper to carry out the terms and provisions of this Agreement (including the provision of all other appropriate ancillary coverages for the benefit of Members or Former Members, or otherwise authorized by law or the Act; and (15) to exercise all powers and perform all acts as otherwise provided in the Bylaws.

Said powers shall be exercised pursuant to the terms hereof, and in the manner provided by law and in accordance with Section 6509 of the Act. The foregoing powers shall be subject to the restrictions upon the manner of exercising such powers pertaining to the Member or Former Member designated in the Bylaws.
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SECTION 8:

BOARD OF DIRECTORS
All powers of FRMS shall be exercised by, and its property controlled and its affairs conducted by and through its Board of Directors. Said Board of Directors is hereby designated as the agency to administer and execute this Agreement pursuant to Government Code Section 6506.

The Board of Directors shall be composed of no more than fifteen (15) and no less than eleven (11) individuals, each of whom is elected by a majority vote of Voting Members participating in a Coverage Program, as specified in the Bylaws. Each member of the Board of Directors shall have one vote. The terms for Directors, procedures for electing Directors, and the composition of the Board of Directors shall be as set forth in the Bylaws. The Board of Directors shall have the authority to conduct all business and govern all affairs of this Joint Powers Authority under the provisions hereof and pursuant to law and shall have such powers and functions as are provided for herein, in the Bylaws, or by law.

SECTION 9:

POWERS OF THE BOARD OF DIRECTORS
The Board of Directors shall have such powers as provided in this Agreement and the Bylaws and such additional powers as necessary or appropriate to fulfill the purposes of this Agreement and the Bylaws, including, but not limited to the following:
(a) Exercise all powers and conduct all business of this Joint Powers Authority. (b) Determine the details of and select the Coverage Programs to be offered by FRMS; (c) Provide for and develop various services including, but not limited to, financial administration, insurance consulting and brokerage services; claims adjustment services, loss control and risk management services; accountancy, auditing and actuarial services; and legal and legislative advocacy services, either through its own employees or contracts with third parties.
(d) Appoint and provide policy direction to the Administrator, appoint committees, appoint staff, and employ such persons as the Board of Directors deems necessary for the administration of this Joint Powers Authority.
(e) Determine and purchase all necessary insurance coverage, including Excess insurance, Re -insurance, liability insurance, director's and officer's liability insurance, and such other insurance as FRMS may deem necessary or proper to carry out the Coverage Programs offered by the Authority, and to protect the employees of FRMS and the employees of the Members.
(f) Fix and collect Contributions and Assessments from participating Members in consideration for participation in the Coverage Programs offered by FRMS. 9

(g) Deposit all funds received in appropriate separate bank accounts in the name of Fire Risk Management Services.
(h) Invest funds on hand in any manner authorized by law for the investment of funds of a public agency.
(i) Direct the payment, adjustment, compromise, settlement and defense of all claims as provided for in the Coverage Documents involving a Member during their period of membership in and participation in a Coverage Program.
(j) Expend funds of FRMS only for the purpose of carrying out the provisions of the Agreement and the Bylaws as they now exist or may hereafter be amended. (k) Obtain a fidelity bond in such amount as the Board of Directors may determine for any person or persons who have charge of or the authority to expend funds of the FRMS. (1) Acquire property by gift, grant, exchange, devise, or purchase; or hold, lease, convey, sell, encumber, or dispose of all property necessary or appropriate to carry out the powers and operations of FRMS.
(m) Establish policies and procedures for the operation of FRMS. (n) Enter into any and all contracts or agreements necessary or appropriate to carry out the purposes and functions of FRMS.
(o) To prepare the annual operating budget of FRMS for each fiscal year. (p) To engage, retain and discharge agents, representatives, firms or other organizations as the Board of Directors deems necessary for the administration of FRMS. (q) To exercise general supervisory power and policy control over the Executive Director. (r) To transact any other business which is within the powers of the Board of Directors. (s) Elect officers of FRMS.

SECTION 10:

OFFICERS
The officers of FRMS shall consist of the President, Vice President, Secretary, Treasurer, Assistant Treasurer, and Administrator. The position of Treasurer shall be filled by a person who either is the treasurer of a Member, a certified public accountant, or one of the officers, employees, or contracted consultants of FRMS. The Treasurer shall have no vote unless the Treasurer is also a Director.
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The Treasurer shall serve at the discretion of the President. The Treasurer shall be the depository of and have custody of all the funds of FRMS, from whatever source. The Treasurer shall comply with the duties and responsibilities of the office as set forth in subdivisions (a) to (d), inclusive, of Section 6505.5 of the Government Code. The Board shall require the Treasurer to file with FRMS an official bond in the amount to be fixed by the Board. FRMS shall pay the cost of bond premiums required by this section.

In lieu of the designation of a treasurer and auditor as set forth in Government Code Section 6505.5, FRMS elects to appoint the Treasurer of FRMS to said positions under the provision of Government Code Section 6505.6. FRMS further elects to be governed by and incorporates herein all other provisions contained within Government Code Section 6505.6, including but not limited to the requirement that the Treasurer shall cause an independent audit to be made by a certified public accountant, or public accountant, in compliance with Section 6505. The treasurer, or the treasurer's designee, shall maintain or cause to be maintained all accounting or other financial records FRMS and shall file all financial reports required of FRMS and shall perform such other duties as the Board may specify.

All offices shall be filled and have the powers and responsibilities as prescribed in the Bylaws.

SECTION 11:

RESTRICTIONS ON POWER
Such powers enumerated in Section 8 hereof are subject to the restrictions upon the manner of exercising power by the California public agency which is a Member and which is named in the Bylaws, pursuant to California Government Code Section 6509.

SECTION 12:

COMPLIANCE WITH THE BROWN ACT
All meetings of the Board, including regular, adjourned regular and special meetings shall be called, noticed, held and conducted in accordance with the provisions of the Ralph M. Brown Act, California Government Code section 54950 et seq.

SECTION 13:

BYLAWS
The Board shall promulgate Bylaws to govern day-to-day operations of FRMS. The Board may amend the Bylaws from time to time as provided for in the Bylaws. The initial Bylaws of FRMS, a copy of which is attached hereto and marked Exhibit A, are hereby adopted as the initial Bylaws of FRMS. Each party to this Agreement by the execution hereof agrees to be bound by and to comply with all the terms and conditions of this Agreement and of said Bylaws as they now exist or may hereafter be amended, and agrees that any violation of the Bylaws shall be a violation of this Agreement. FRMS shall operate and conduct its business and affairs pursuant to the terms of 11

this Agreement and said Bylaws. In the event any provisions of the Bylaws conflict with a provision of this Agreement, the provision contained in this Agreement shall control.

SECTION 14:

COVERAGE PROGRAMS
FRMS shall maintain such types and levels of coverage for Coverage Programs as determined by the Board of Directors. The coverage afforded under one or more Coverage Programs may include protection for workers' compensation liability, employment health and welfare benefits, and any other risks which the Board of Directors may determine to be advisable. More than one type of coverage may be afforded under a single Coverage Program. FRMS shall describe the coverage and operation of each Coverage Program in writing utilizing documents such as Memorandums of Coverage, Master Program Documents, or other written policies and procedures.

The Board of Directors may arrange for purchase of Excess or Re -insurance. FRMS shall not be liable to any Member or to any other person or organization if such excess or re -insurance policies are terminated, cancelled or non -renewed without prior notice to one or more Members, or if there is a reduction in the type or amounts of coverage afforded under a Coverage Program by reason of any change in coverage in a succeeding excess or re -insurance policy, even if such reduction occur without prior notice to one or more Members.

SECTION 15:

IMPLEMENTATION OF THE COVERAGE PROGRAMS
The Board of Directors shall establish the coverage afforded by each Coverage Program, the amount of Contributions and Assessments, the precise cost allocation plans and formulas, provide for the handling of Claims, and specify the amounts and types of Excess or Re -insurance to be obtained. The Contributions and Assessments for each Coverage Program shall be determined by the Board of Directors as set forth herein, in the Bylaws, or in the controlling documents for each Coverage Program.

SECTION 16:

ACCOUNTS AND RECORDS
(a) Annual Budget. FRMS shall, pursuant to the Bylaws, annually adopt an operating budget, including budgets for each Coverage Program.
(b) Funds and Accounts. FRMS shall establish and maintain such funds and accounts as required by the Board of Directors and as required by generally accepted accounting principles, including separate funds and accounts for each Coverage Program. Books and records of FRMS shall be open to any inspection at all reasonable times by authorized representatives of Members, or as otherwise required by law. (c) Investments. Subject to the applicable provisions of any indenture or resolution providing for the investment of moneys held thereunder, FRMS shall have the power to 12

invest any money in the treasury that is not required for the immediate necessities of FRMS, as the Board determines advisable, in the same manner as local agencies pursuant to Government Code Section 53601 et seq. as such provisions may be amended or supplemented.
(d) No Commingling. The funds, reserves, and accounts of each Coverage Program shall not be commingled and shall be accounted for separately; provided, however, that administration and overhead expenses of FRMS not related to a specific Coverage Program may be fairly and equitably allocated among Coverage Programs as determined by the Board of Directors. Investments and cash accounts may be combined for administrative convenience, but separate accounting shall be made for balances of individual funds and Coverage Program revenues and expenses. (e) Annual Audit. The Board shall provide for a certified, annual audit of the accounts and records of FRMS, in the manner prescribed in the Bylaws.

SECTION 17:

SERVICES PROVIDED BY FRMS
FRMS may provide, in the discretion of the Board of Directors, the following services in connection with this Agreement:
(a) To provide or procure coverage, including but not limited to self-insurance funds and commercial insurance, as well as Excess or Re -insurance and umbrella insurance, by negotiation, bid or purchase;
(b) To assist Members in obtaining insurance coverage for risks not included within the coverages of FRMS;
(c) To assist risk managers with the implementation of risk management functions as they relate to risks covered by the Coverage Programs offered by FRMS; (d) To provide loss control and safety consulting services to Members; (e) To provide claims adjusting and subrogation services for Claims covered by the Coverage Programs;
(f) To provide loss analysis and control through the use of statistical analysis, data processing, and record and file retention services, in order to identify high exposure operations and to evaluate proper levels of self -insured retention and deductibles; (g)
To conduct risk management and claims audits relating to the participation of Members in the Coverage Programs;
(h) To provide such other services as deemed appropriate by the Board of Directors. 13

SECTION 18:

RESPONSIBILITIES OF MEMBERS
Members or Former Members shall have the following responsibilities, which shall survive the withdrawal from, or involuntary termination of participation in a Coverage Program, or membership in FRMS:
(a) Each Member shall designate an individual to be responsible for the risk management functions within that Member and to serve as a liaison between the Member and FRMS as to risk management.
(b) Each Member shall consider all recommendations of FRMS concerning unsafe practices and/or hazard mitigation, and each Member participating in the Workers' Compensation Coverage Program shall implement and maintain an injury and illness prevention program as required by the California Labor Code within ninety (90) days of inception into program.
(c) Each benefits program Member shall maintain its own set of records, including a loss log, in all categories of risk covered by each Coverage Program in which it participates to assure accuracy of FRMS' loss reporting system, unless it is deemed no longer necessary by the Board of Directors;
(d) Each Member participating in the Workers' Compensation Program shall report job - related accidents or illnesses to the appropriate claims administrator as soon as practicable after notification of the accident or illness, and no later than 48 hours after notification, shall use the format specified by the claims administrator when making job - related accident reports, and make any other required notifications to government agencies, including Cal -OSHA, when required;
(e) Each Member shall pay its Contribution, and any adjustments thereto, and any Assessments within the specified time period set forth in the invoice, or as otherwise set forth in the Bylaws. After withdrawal or termination, each Former Member or its successor shall promptly pay to FRMS its share of any additional Contributions, adjustments or Assessments, if any, as required of it by the Board of Directors; (f) Each Member or Former Member shall provide FRMS with such other information or assistance as may be necessary for FRMS to carry out the Coverage Programs in which the Member or Former Member participates or has participated; (g)
Each Member or Former Member shall in any and all ways cooperate with and assist FRMS and any insurer of FRMS, in all matters relating to this Agreement and covered Claims;
(h) Each Member or Former Member shall comply with all Bylaws, rules, regulations and operating policies and procedures adopted by the Board of Directors. 14

SECTION 19:

NEW MEMBERS
FRMS shall allow entry into its Coverage Programs of new Members, only upon approval of the Board of Directors, with any conditions or limitations that the Board deems appropriate. In order to become a Member and remain a Member, any public agency must participate in at least one Coverage Program, pay the Contributions required for such participation, and shall be authorized to exercise the common powers set forth in this Agreement.

SECTION 20:

WITHDRAWAL
Any Member may voluntarily withdraw from this Agreement only at the end of any applicable Program Year and only if:
(a) The Member has been a party to this Amended and Restated Agreement for not less than three (3) full Program Years as of the date of the proposed withdrawal; (b) The Member submits at least 90 (ninety) days signed written withdrawal notification in accordance with the Bylaws;
(c) In order to withdraw from the Agreement, the Member must have completed the three (3) full Program Year participation requirement for each Coverage Program in which the Member participated at the time of withdrawal.

Any Member may voluntarily withdraw from any particular Coverage Program only at the end of any applicable Program Year and only if:
(a) The Member has participated in a Coverage Program for at least three (3) full Program Years;
(b) The Member is a participant in another Coverage Program; and (c) The Member submits at least ninety (90) days signed written withdrawal notification in accordance with the Bylaws.

In the event that the three (3) year participation requirement for any Coverage Program has not been met, for each Coverage Program the withdrawing Member participated in at the time of withdrawal for less than three (3) years, such withdrawing Member shall be obligated to pay all Contributions and Assessments as if that Member had remained in such Coverage Program for the required three (3) full years.

In the event the notice of withdrawal is not provided as required above, any such withdrawing Member shall, with respect to each Coverage Program the Member participated in, be obligated to pay any and all Contributions and Assessments for the next full Program Year. 15

A Member may not withdraw as a party to this Agreement until it has withdrawn from all of the Coverage Programs of FRMS as provided herein and in the Bylaws.

SECTION 21:

EXPULSION
FRMS shall have the right to expel any Member's participation in a Coverage Program, or expel a Member from FRMS, for violation of the terms of this Agreement, the Bylaws, or any other rule, regulation or operational policy adopted by the Board of Directors of FRMS, in the manner provided for in the Bylaws.

The participation of any Member of FRMS, including participation in any of FRMS' Coverage Programs, may be expelled in the discretion of the Board of Directors whenever such Member is dissolved, consolidated, merged or annexed. Any such expulsion shall not relieve the Member or Former Member of its membership responsibilities specified in this Agreement.

SECTION 22:

EFFECT OF WITHDRAWAL OR EXPULSION
The withdrawal from or expulsion of any Member from this Agreement shall not be construed as a completion of the purpose of the Agreement, nor shall it terminate this Agreement. Any Member that withdraws or is expelled after the effective date of this Amended and Restated Agreement shall not be entitled to payment, return or refund of any Contribution, Assessment, consideration, or other property paid or donated by the Member to FRMS, or to any return of any loss reserve contribution, or to any distribution of assets.

The withdrawal from or expulsion of any Member from any Coverage Program shall not terminate its responsibilities to pay its unpaid Contributions, adjustments, or Assessments to such Coverage Program. The Board of Directors shall determine the final amount due from the Member or Former Member by way of Contributions or Assessments, if any, or any credit due on account thereof, to the Member or Former Member for the period of its participation. Such determination shall not be made until all Claims or other unpaid liabilities of that Coverage Program have been finally resolved.

SECTION 23:

TERMINATION OF FRMS AND DISTRIBUTION
This Agreement may be terminated at any time with the written consent of two-thirds of the then participating Members; provided, however, that FRMS and this Agreement shall continue to exist for the purpose of disposing of all claims, distribution of all assets, and all other functions necessary to wind up the affairs of the Authority.

The Board of Directors is vested with all powers of FRMS for the purposes of winding up and dissolving the business affairs of FRMS. These powers include the power to require Members or Former Members who were signatories to this Agreement at the time the subject Claims were 16

incurred, to pay any Assessments in accordance with loss allocation formulas for final disposition of all Claims and losses covered by this Agreement or the Bylaws.

Upon termination of a Coverage Program, all net assets of such Coverage Program other shall be distributed only among Members that are participating in such Coverage Program at the time of termination, in accordance with and proportionate to their Contributions, adjustments, and Assessments paid less claims or losses paid during the period of that Member's participation in the Coverage Program. The Board of Directors shall determine the distribution in the manner specified in the Bylaws.

Upon termination of this Agreement, all net assets of FRMS, other than the net assets of any Coverage Program distributed as provided above, shall be distributed only among Members in good standing at the time of such termination in accordance with and proportionate to each such Member's contributions made and claims or losses paid, as permitted by Government Code Section 6512.2. The Board of Directors shall determine such distribution in the manner specified in the Bylaws.

In lieu of terminating this Agreement, the Board may, with the written consent of two-thirds of the Voting Members, elect to assign and transfer all rights, assets, liabilities and obligations of FRMS to a successor joint powers authority created under the Act.

SECTION 24:

AMENDMENTS
This Joint Powers Agreement may be amended by an amendment in writing signed by two-thirds of the Members then parties to this Agreement. Upon signature of any amendment by two-thirds of the then participating Members, any Member failing or refusing to sign such amendment may be involuntarily terminated as a party to this Agreement as provided in the Bylaws.

SECTION 25:

ENFORCEMENT
FRMS is hereby granted authority to enforce this Agreement. In the event action is instituted to enforce any term of this Agreement or any term of the Bylaws against any Member which has signed this Agreement, the Member agrees to pay such sums as the court may fix as attorney fees and costs in said action.

SECTION 26:

NON -LIABILITY OF MEMBER AGENCIES
Pursuant to Government Code Section 6508.1, the debts, liabilities and obligations of the FRMS shall not be the debts, liabilities or obligations of the Members which are parties to the Agreement.

Nothing in the Joint Powers Agreement or in the Bylaws adopted pursuant thereto shall be construed as imposing liability upon any Member, or any officer, employee or member of the legislative body thereof, for the payment of any Claims incurred in any of the Coverage Programs 17

offered by FRMS to its Members, the sole recourse of claimants being against funds of those insurance programs and/or self -funded programs administered by the FRMS for the payment of such benefits.

SECTION 27:

NON -LIABILITY OF DIRECTORS, OFFICERS, ADMINISTRATOR,

AGENTS AND EMPLOYEES
The Board of Directors, officers, Administrator, agents, and employees of FRMS shall not be liable to FRMS, to any Member or Former Member, or to any other person for any actual or alleged breach of duty, mistake of judgment, neglect, error, misstatement, misleading statement, or any other act or omission in the performance of their duties hereunder; for any action taken or omitted by any director, officer, administrator, agent, or employee, or independent contractor; for loss incurred through the investment or failure to invest funds; or loss attributable to any failure or omission to procure or maintain insurance; except in the event of fraud, gross negligence, or intentional misconduct of such director, officer, administrator, agent, or employee. No director, officer, administrator, agent, or employee, including former directors, officers, administrators, agents or employees, shall be liable for any action taken or omitted by any other director, officer, administrator, agent, or employee.

SECTION 28:

INDEMNIFICATION OF BOARD OF DIRECTORS, OFFICERS, AND EMPLOYEES As a public entity, FRMS shall defend and shall indemnify and hold harmless its directors, officers, and employees, including former directors, officers and employees, from any and all claims, demands, causes of action, liability, losses and damages arising out of the performance of their duties as such directors, officers and employees of FRMS, except in the event of fraud, gross negligence, corruption, malice or intentional misconduct, and the funds of FRMS shall be used for such purposes. FRMS may purchase conventional insurance to protect FRMS, and its Members and Former Members, against any such acts or omissions by its directors, officers and employees, including former directors, officers and employees.

SECTION 29:

ADMINISTRATION OF PREEXISTING OBLIGATIONS
(a) All liabilities and obligations of FASIS existing prior to the effective date of this Amended and Restated Agreement will be administered under the terms and conditions of the FASIS Agreement as it existed prior to the effective date. (b) All assets of FRMS existing prior to the effective date shall be reserved by FRMS for the sole purpose of administering the preexisting obligations under the FASIS Agreement. (c) The Board shall appoint a committee made up of representatives of Members that were Members of FASIS prior to the effective date to make recommendations to the Board regarding the administration of the preexisting obligations under the FASIS Agreement. 18

As to specific agenda items relating to such matters, only Directors representing Members who were members of FASIS prior to the effective date may vote, and as to such items, a quorum shall be determined solely by reference to the number of Directors that represent members of FASIS prior to the effective date. (d) In the event that FDAC EBA assigns its rights, assets, liabilities and obligations to FRMS, any assets of FDAC EBA that are assigned to FRMS shall be used exclusively for the purpose of administrating the obligations of FDAC EBA. In the event of such assignment, the Board shall appoint a committee made up of representatives of Members that were Members of FDAC EBA prior to the effective date to make recommendations to the Board regarding the administration of FDAC EBA's obligations. As to specific agenda items relating to such matters, only Directors representing Members who were members of FDAC EBA prior to the effective date may vote, and as to such items, a quorum shall be determined solely by reference to the number of Directors that represent members of FDAC EBA prior to the effective date.

SECTION 30:

MISCELLANEOUS PROVISIONS
(a) This Agreement shall bind and inure to the heirs, devisees, assignees and successors in interest of the Authority and to the successors in interest of each Member in the same manner as if such parties had been expressly named herein. (b) This Agreement shall be governed by the law of the state of California. This Agreement together with the documents incorporated into the Agreement by reference constitute the entire Agreement between the parties regarding its subject matter. There are no oral understandings or agreements not set forth in writing herein. (c) If any provisions in this Agreement are held by any court to be invalid, void, or unenforceable, the remaining provisions of this Agreement shall nevertheless continue in full force and effect.
(d) No person or organization or entity shall be entitled to assert the rights of any Member or Former Member under any Coverage Document or Coverage Program. No Member or Former Member may assign any right, claim or interest it may have under this Agreement, and no creditor, assignee or third -party beneficiary of any Member or Former Member shall have any right, claim or title to any part, share, interest, fund, contribution or asset of FRMS.
19

SECTION 31:

EXECUTION IN COUNTERPARTS
This Agreement may be executed in one or more counterparts and shall be as fully effective as though executed in one document.
(Agency Name)
Date: By:

Name/Title
20

RESOLUTION NO. 2023-

A RESOLUTION OF THE CITY OF BEAUMONT AUTHORIZING PARTICIPATION

IN AND APPROVING THE AMENDED AND RESTATED JOINT EXERCISE OF

POWERS AGREEMENT OF THE FIRE RISK MANAGEMENT SERVICES JOINT

POWERS AUTHORITY
WHEREAS, the Fire Agencies Self Insurance System (FASIS) was formed in 1984 for the purpose of jointly funding losses and providing risk management services to reduce such losses by and among California fire protection and community services districts; and WHEREAS, the FDAC Employment Benefits Authority (FDAC EBA) was formed in 2005 to establish, operate, manage, and administer health and welfare benefit programs for the benefit of the existing and retired officers, employees and members of the legislative body of the California public agencies who are members of FDAC EBA; and WHEREAS, following the exploration and in-depth analysis of a strategic partnership, the Board of Directors of FASIS and FDAC EBA directed the merger of the two programs, effective July 1, 2023, to provide comprehensive and cost-effective coverage programs through a responsive risk pool for fire service agencies; and
WHEREAS, FASIS and FDAC EBA have agreed that FASIS will change its name to Fire Risk Management Services (FRMS) and adopt an amended and restated joint exercise of powers agreement, and that FDAC EBA will assign its rights and liabilities to FRMS and adopt the same agreement as its own; and
WHEREAS, the City of Beaumont is currently a member of FDAC EBA, and the City Council of the City of Beaumont finds it in the best interest of the City of Beaumont to continue participating in and obtaining coverage and risk management services from FRMS; and WHEREAS, FRMS requires the City of Beaumont to pass a resolution expressing the desire and commitment of the City of Beaumont to approve the amended and restated joint exercise of powers agreement of FRMS and continue participation in FRMS, which requires a new three- year minimum participation period.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of City of Beaumont approves the Amended and Restated Joint Exercise of Powers Agreement for FRMS, as presented; and City Council authorizes the City Manager sign the Amended and Restated Joint Exercise of Powers Agreement that shall enable the City of Beaumont to continue participating in the joint self-insurance and risk management programs provided by FRMS. 1

MOVED, PASSED AND ADOPTED this 16th day of May, 2023.

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST:

White, Voigt, Lara, Fenn, Martinez
Nicole Wheelwright

DEPUTY CITY CLERK
By:

By:

Julio Martinez III, Mayor
2

BAUME ONTA -C A L I F O R N I
Staff Report
TO: City Council
FROM: Carole Kendrick, Planning Manager
DATE May 16, 2023
SUBJECT: Consideration of (PLAN2023-0920) Assignment and Assumption of a Development Agreement (06 -DA -01) for the Sunny Cal Specific Plan Description Assignment and Assumption of a Development Agreement No. 06 -DA -01 between the City of Beaumont and CV Communities, LLC.

Background and Analysis:

The Sunny -Cal Specific Plan, Annexation, Sphere of Influence Amendment and Environmental Impact Report were approved by the Beaumont City Council on August 21, 2007, which provided the backbone zoning and environmental framework for 560 dwelling units on approximately 200 acres including 31.6 acres of parkland, trails, and open space.

On September 18, 2007, the Pre -Annexation and Development Agreement (06 -DA -01) between the City of Beaumont, Sunny Cal Egg & Poultry, Inc. and Manheim, Manheim & Berman became effective (see Attachment B).

An Assignment and Assumption of the Development Agreement between CV Communities, LLC, was approved on the consent calendar by the City Council on December 18, 2012, and became effective on December 21, 2012 (see Attachment C).

The subject property was annexed into the City of Beaumont under the Local Agency Formation Commission (LAFCO) number 2014-10-5 and Resolution No. C-02-18 with an effective date of February 15, 2018. However, Planning Area No. 3 consisting of

43.44 acres and 116 dwelling units was not annexed, leaving the project with 156.56 acres and total unit count of 444.

The subject properties were purchased by Exeter Cherry Valley Land, LLC on April 9, 2021, and the property owner is requesting Assignment and Assumption of the existing Development Agreement. Section 20.1 of the Development Agreement states that "the owner shall have the right to sell, assign or transfer the agreement and any and all of its rights, duties and obligations hereunder, in whole or in part, to any person or entity at

any time during the term of this Agreement; provided however, in no event shall the rights, duties and obligations conferred upon by the Owner pursuant to this Agreement be at any time so transferred or assigned except through a transfer of an interest of the Owner in the Property or a portion of thereof. An Assignment shall not be effective without the City's prior approval, which shall not be unreasonably withheld, to ensure that the Assignment will not prevent the orderly development of the project consistent with the Agreement or Development."
The Development Agreement is currently 15 years into the 25 -year term. The expiration date of the Sunny Cal Development Agreement is September 18, 2032.

Environmental Documentation:

From the standpoint of the California Environmental Quality Act (CEQA), an Environmental Impact Report (EIR) was prepared and certified in 2007 for the Sunny - Cal Specific Plan, and the later Addendum in 2014, assessing the environmental impacts of the project. The EIR and the findings made by the City Council remain valid.

This Assignment and Assumption of the Development Agreement is not subject to CEQA, as it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. 14 CCR Section 15061(b)(3).

Findings:

The guidelines for Development Agreements are established in City of Beaumont Resolution No. 1987-34. This resolution requires City Council to make the following findings:

1. The proposed agreement is consistent with the objectives, policies, general land use and programs specified in the General Plan.

The proposed Assignment and Assumption of the Development Agreement is consistent with the General Plan and its goals, objectives and policies.

2. The proposed agreement facilitates land uses which are compatible with the uses authorized in, and the regulations prescribed for, the land use districts in which the real property is located.

The proposed Assignment and Assumption of the Development Agreement has no impact on zoning or land use on the property or in the surrounding area. There are no

proposed changes to the zoning, land use or project approvals as a result of this Assignment.

3. The proposed agreement is in conformity with public convenience, general welfare and good land use practice.

The proposed Assignment and Assumption of the Development Agreement has no impact on land use or compatibility with the surrounding area.

4. The proposed agreement will not be detrimental to the health, safety and general welfare.

Approval of the Assignment and Assumption of the Development Agreement will have no impact on the health, safety or welfare of the City, the surrounding area or its residents. The proposed Assignment and Assumption of the Development Agreement, through the imposition of conditions will ensure the existing and proposed infrastructure can adequately serve the public.

5. The proposed agreement will not adversely affect the orderly development of property or the preservation of property values.

Approval of this Assignment and Assumption of the Development Agreement will help facilitate the orderly development of infrastructure and related facilities. Approval of this proposed Assignment and Assumption of the Development Agreement will not have a negative effect on orderly development or preservation of property rights and is agreed to by both the City and the property owner.

There are no unusual or changed circumstances at this site which would affect the entitlements or consideration of amendment to the Development Agreement. All of the required findings can be made in a positive manner.

Fiscal Impact:

The cost of staff time and legal review for the preparation of this report is covered by the flat fee of $3,521.16 for an Assignment of Development Agreement.

Recommended Action:

Approve the Assignment and Assumption of the Sunny -Cal Development Agreement 06 -DA -01 with Exeter Cherry Valley Land, LLC.

Attachments:

A. Proposed Assignment and Assumption of Development Agreement B. Original 2007 Pre -Annexation and Development Agreement C. 2012 Assignment and Assumption of Development Agreement D. Sunny Cal Land Use Plan
Incorporated Herein by Reference:
• City of Beaumont General Plan
• Project Site's Riverside Conservation Authority Multi -Species Habitat Conservation Plan Informational Map
• Contents of the City of Beaumont Planning Department Project Files for the Sunny -Cal Specific Plan, Environmental Impact Report, 13-TTM-005, 16-GPA- 001, 16-RZ/PZ-001, 05-ANX-01, 14-EIR-0 and PLAN2023-0920

RECORDING REQUESTED BY
AND WHEN RECORDED, MAIL TO:

The Chase Law Group, LLC
1447 York Road, Suite 505
Lutherville, MD 21093
APNs: 407-190-016, 407-190-017, 407-230-022, 407-230- (Space Above Line for Recorder's Use Only) 023,407-230-024,407-230-025,407-230-026, AND 407-
230-028

ASSIGNMENT AND ASSUMPTION OF DEVELOPMENT AGREEMENT
This Assignment and Assumption of Development Agreement (this "Assignment") is made as of January , 2023 by and between CV COMMUNITIES, LLC, a Delaware limited liability company ("Assignor"), and EXETER CHERRY VALLEY LAND, LLC, a Delaware limited liability company ("Assignee").

RECITALS
A. Assignor was isthe "Owner" of the "Property" that was annexed to the City of Beaumont as the forgoing terms are defined under that certain Pre -Annexation and Development Agreement No. 06 -DA -01, effective September 18, 2007, between the City of Beaumont, a municipal corporation organized and existing under the laws of the State of California ("City"), Sunny -Cal Egg & Poultry Company, a California corporation ("Sunny -Cal") and Manheim, Manheim & Berman, a California general partnership, recorded on October 18, 2012, as Document No. 2012-0497525, in the Official Records of the County Recorder of Riverside County, California, pursuant to that certain Assignment and Assumption of Development Agreement dated December 21, 2012 by and between Sunny -Cal, as assignor, and Assignor, as assignee, with the consent of the City (collectively, the "Development Agreement").

B. Assignee is the owner of the Property as aforementioned that certain real property in Riverside County, California more particularly described on Exhibit A attached hereto ("Property")_ pursuant to a Grant Deed dated the Effective Date and recorded April 9, 2021, as Document No. 2021-0222868.

C. Assignor desires to assign to Assignee all of its rights and obligations under the Development Agreement relating to the Property, and Assignee wishes to accept such assignment as more particularly set forth below.
{00287452; 2 }
74246367v1

AGREEMENT
NOW, THEREFORE, in consideration of the promises and the conditions contained in this Assignment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

1. Recitals; Capitalized Terms. The Recitals, as set forth above, are hereby incorporated by this reference and made a part hereof. Unless otherwise defined in this Assignment, capitalized terms used in this Assignment shall have the meanings ascribed to such terms in the Development Agreement.

2. Assignment. Effective as of the date that Assignee acquired fee title to the Property on April 9, 2021 (the "Effective Date"), Assignor assigned hereby assigns to Assignee all of Assignor's interest, rights, benefits, obligations, duties, and liabilities under the Development Agreement (and all documents and instruments relating to or implementing the Development Agreement) with respect to the Property.

3. Assumption. Assignee hereby accepts and assumes such assignment and agrees to keep, perform and be bound by all the terms, covenants and conditions contained in the Development Agreement (and all documents and instruments relating to or implementing the Development Agreement) with respect to the Property on the part of the "Owner" therein, first arising on and after the Effective Date, as though Assignee were the original "Owner" under the Development Agreement.

4. Counterparts. This Assignment may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall be deemed to be one and the same instrument.
[Remainder of Page Intentionally Left Blank; Signature Page Follows] {00287452; 2 }
2

IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment as of the Effective Date.

ASSIGNOR:

CV COMMUNITIES, LLC,
a Delaware limited liability company
By:

Name:

Title:

ASSIGNEE:

EXETER CHERRY VALLEY LAND, LLC,
a Delaware limited liability company
By: Exeter Operating Partnership V, L.P.,
a Delaware limited partnership,
its sole member
By: Exeter Operating Partnership V GP LLC,
a Delaware limited liability company,
its sole general partner
By: Exeter Industrial REIT V LLC,
a Delaware limited liability company,
its sole member
By:

Name: J. Peter Lloyd
Title: Vice President
{00287452; 2 }
3

CONSENT TO ASSIGNMENT
City hereby consents to and approves the Assignment . of January , 2023 by and between CV COMMUNITIES, LLC, a Delaware limited liability company ("Assignor"), and EXETER CHERRY VALLEY LAND, LLC, a Delaware limited liability company ("Assignee").

CITY OF BEAUMONT, a municipal
corporation organized and existing under the
laws of the State of California
By:

Title:

SIGNED AND CERTIFIED THAT

A COPY OF THIS DOCUMENT HAS

BEEN DELIVERED TO THE MAYOR

AND THE CITY COUNCIL
By:

City Clerk
{00287452; 2 }
4

STATE OF

STATE OF

ACKNOWLEDGMENT

OF NOTARY PUBLIC
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
) SS.

County of
On before me, , Notary Public, personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) islafe subscribed to the within instrument and acknowledged to me that he, executed the same in his/her/their authorized {00287452; 2 }
5

capacity(ies), and that by his/her/their signature(s) on the instrument the persons), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)
Notary Public

ACKNOWLEDGMENT

OF NOTARY PUBLIC
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
) SS.

County of
{00287452; 2 }
6

On before me, , Notary Public,
personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) islafe subscribed to the within instrument and acknowledged to me that he'd executed the same in his/her/their authorized capacity(ics), and that by his/her heir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)
Notary Public
Property Description

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF BEAUMONT (AREA), IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

PARCEL 1: APN 407-190-016
THE WESTERLY 208.71 FEET OF THE NORTHERLY 1,073.55 FEET OF THE SOUTH HALF OF SECTION 29, TOWNSHIP 2 SOUTH, RANGE 1 WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF.

EXCEPTING THEREFROM THE NORTHERLY 30 FEET IN WOODLAND AVENUE, NOW CHERRY VALLEY BOULEVARD.

ALSO EXCEPTING THAT PORTION CONVEYED TO THE COUNTY OF RIVERSIDE BY DEED RECORDED NOVEMBER 14, 1974 AS INSTRUMENT NO. 146636.

PARCEL 2: APN 407-190-017
{00287452; 2 }
7

PARCEL 2A:

THAT PORTION OF THE SOUTH HALF OF SECTION 29, TOWNSHIP 2 SOUTH, RANGE 1 WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS:

BEGINNING AT THE NORTHWEST CORNER OF SAID SOUTH HALF OF SECTION 29, SAID POINT BEING ALSO A POINT IN THE CENTER OF WOODLAND AVENUE;
THENCE NORTH 89° 33' 30" EAST ON THE CENTER LINE OF WOODLAND AVENUE, 786.12 FEET, MORE OR LESS, TO A POINT DISTANT SOUTH 89° 33' 30" WEST, 791 FEET, FROM THE NORTHWEST CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED TO J. VINCENT HANNON AND JEREMIAH C.

HANNON BY DEED RECORDED JANUARY 28, 1909 IN BOOK 276, PAGE 324 OF DEEDS, RIVERSIDE COUNTY RECORDS;
THENCE SOUTH 0° 28' 50" WEST AND PARALLEL WITH THE WESTERLY LINE OF SAID PARCEL CONVEYED TO HANNON, 1975 FEET TO A POINT ON THE NORTHERLY LINE OF THAT CERTAIN PARCEL CONVEYED TO MELVIN F. KLAGUOS AND PAULINE M. KLAGUOS, HUSBAND AND WIFE BY DEED RECORDED AUGUST 4, 1959 AS INSTRUMENT NO. 67500;

THENCE WESTERLY ON THE NORTHERLY LINE OF SAID PARCEL CONVEYED TO KLAGUOS TO A POINT IN THE WEST LINE OF SAID SECTION 29;
THENCE NORTH 0° 07' 40" EAST ON THE WEST LINE OF SAID SECTION 29, TO THE POINT OF BEGINNING; EXCEPTING THEREFROM THE WESTERLY 208.71 FEET OF THE NORTHERLY 1,073.55 FEET;
ALSO EXCEPTING THEREFROM THE NORTHERLY 30 FEET IN WOODLAND AVENUE, NOW CHERRY VALLEY BOULEVARD.

ALSO EXCEPTING THAT PORTION CONVEYED TO THE COUNTY OF RIVERSIDE BY DEED RECORDED NOVEMBER 14, 1974 AS INSTRUMENT NO. 146646.

PARCEL 2B:

THAT PORTION OF THE SOUTHWEST QUARTER OF SECTION 29, TOWNSHIP 2 SOUTH, RANGE 1 WEST,

SAN BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS:

COMMENCING AT A POINT ON THE NORTHERLY LINE OF SAID SOUTHWEST QUARTER DISTANT SOUTH 89° 33' 30" WEST, 791 FEET FROM THE NORTHWEST CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED TO J. VINCENT HANNAN BY DEED RECORDED JANUARY 28, 1909 IN BOOK 276, PAGE 324 OF DEEDS, RIVERSIDE COUNTY RECORDS; SAID POINT ALSO BEING DISTANT NORTH 89° 33' 30" EAST 786.12 FEET FROM THE NORTHWEST CORNER OF THE SOUTHWEST QUARTER OF SAID SECTION;
THENCE SOUTH 0° 28' 50" WEST, PARALLEL WITH THE WEST LINE OF THE PARCEL CONVEYED TO J.

VINCENT HANNON 313.5 FEET TO THE TRUE POINT OF BEGINNING;

THENCE EASTERLY ON SAID SOUTHERLY LINE OF THE PARCEL CONVEYED TO GEORGEOUS GEORGE AND ELIZABETH B. GEORGE, BY DEED FILED FOR RECORD AUGUST 21, 1952 AS INSTRUMENT NO. 35786, IN BOOK 1394 PAGE 352 OFFICIAL RECORDS, 11 FEET; THENCE SOUTHERLY 1, 221.5 FEET TO A POINT ON THE SOUTHERLY LINE OF THAT CERTAIN PARCELCONVEYED TO FRANK J. FABIAN AND MARY R. FABIAN BY DEED RECORDED NOVEMBER 4, 1939 IN BOOK 434, PAGE 587 OF OFFICIAL RECORDS, RIVERSIDE COUNTY RECORDS, 20.5 FEET OF THE SOUTHWEST CORNER OF SAID PARCEL SO CONVEYED TO FRANK J. FABIAN AND WIFE; {00287452; 2 } 8

THENCE WEST ON SAID SOUTH LINE 20.5 FEET;
THENCE NORTH 1,221.5 FEET TO THE POINT OF BEGINNING.

PARCEL 2C:

THAT PORTION OF THE SOUTHWEST QUARTER OF SECTION 29, TOWNSHIP 2 SOUTH, RANGE 1 WEST,

SAN BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE NORTH LINE OF SAID SOUTHWEST QUARTER DISTANT SOUTH 89° 33' 30" WEST, 791 FEET FROM THE NORTHWEST CORNER OF THAT CERTAIN PARCEL CONVEYED TO J. VINCENT HANNON BY DEED RECORDED JANUARY 28, 1909 IN BOOK 276, PAGE 324 OF DEEDS, RIVERSIDE COUNTY RECORDS; SAID POINT ALSO BEING DISTANT NORTH 89° 33' 30" EAST 786.12 FEET FROM THE NORTHWEST CORNER OF SAID SOUTHWEST QUARTER; THENCE SOUTH 0° 28' 50" WEST, PARALLEL WITH THE WEST LINE OF THE PARCEL CONVEYED TO J.

VINCENT HANNON 313.4 FEET;
THENCE NORTH 89° 33' 30" EAST, 30 FEET;
THENCE NORTH 0° 28' 50" EAST, 313.4 FEET, TO THE NORTH LINE OF SAID SOUTHWEST QUARTER; THENCE SOUTH 89° 33' 30" WEST, 30 FEET TO THE POINT OF BEGINNING; EXCEPTING THEREFROM THE NORTH 30 FEET IN WOODLAND AVENUE, NOW CHERRY VALLEY BOULEVARD.

ALSO EXCEPTING THAT PORTION CONVEYED TO THE COUNTY OF RIVERSIDE BY DEED RECORDED NOVEMBER 14, 1974 AS INSTRUMENT NO. 146646.

PARCEL 3: APNS: 407-230-022, 407-230-023, 407-230-024, 407-230-025, 407-230-026, AND 407-230-028 PARCELS 1 TO 7, INCLUSIVE, AND LOTS A TO K, INCLUSIVE OF PARCEL MAP NO. 12218, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN PARCEL MAP BOOK 85, PAGE 66 OFPARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. {00287452; 2 }
9

DOC # 2012-0497525

RECORDING REQUESTED BY, AND
WHEN RECORDED, MAIL TO:

City Clerk
City of Beaumont
550 East Sixth Street
Beaumont, California 92223
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10/18/2012 08:28A Fee:NC

Recorded in Official Records
County of Riverside
Larry W. Ward
Assessor, County Clerk & Recorder
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PRE -ANNEXATION AND

DEVELOPMENT AGREEMENT
NO. 06 -DA -01

BETWEEN

THE CITY OF BEAUMONT
AND
CTY
EXAM
UNI 04)
SUNNY -CAL ECG & POULTRY, INC. AND MANHEIM, MANHEIM & BERMAN (Pursuant to California Government Code Sections 65864 - 65869.5 and City of Beaumont Resolution No. 1987-34)
September 18 ,2007

ORIGINAL

PRE -ANNEXATION AND

DEVELOPMENT AGREEMENT
This PRE -ANNEXATION AND DEVELOPMENT AGREEMENT
("Agreement") is entered into to be effective on September 18, 2007, between SUNNY -CAL EGG & POULTRY, INC., a California corporation and MANHEIM, MANHEIM & BERMAN, a California general partnership (collectively the "Owner"), and the CITY OF BEAUMONT, a municipal corporation organized and existing under the laws of the State of California (the "City"). The Owner and the City are sometimes collectively referred to herein as the "parties."
RECITALS:

This Agreement is predicated upon the following facts:

A. These Recitals use certain capitalized terms which are defined in this Agreement.

B. Government Code Sections 65864 - 65869.5 authorize the City to enter into binding development agreements with persons having a legal or equitable interest in real property for the development of such property, all for the purpose of strengthening the public planning process, encouraging private participation and comprehensive planning and reducing the economic costs of such development. The City has implemented the law contained in such sections by adopting Resolution No. 1987-34, titled "Establishing Procedures and Requirements for Consideration of Development Agreements" (such Resolution, together with the aforementioned Government Code Sections, are being referred to herein as the "Development Agreement Law").

C. This Agreement is adopted pursuant to the Development Agreement Law.

D. The Owner is the owner of approximately 200 acres of land currently located in unincorporated Riverside County, California ("County"), but which the parties intend to be annexed to the City, all as more particularly described on Exhibit "A" attached hereto and shown on Exhibit "B" attached hereto (the "Property").

E. The Owner desires that the Property be developed in accordance with the Development Plan (as hereinafter defined) (the "Project"). The Project is highly capital intensive, especially in its initial phases, which, in order to make the Project economically and fiscally feasible, requires major commitment to and investment in public facilities and on -site and off -site improvements prior to the construction and sale or leasing of residential buildings.

This Agreement is intended to facilitate the logical and orderly development of the Project in the City.

F. The City has determined that the Development Plan is consistent with the City General Plan and has approved the Development Plan in order to promote the health, safety

and welfare of its citizens and to protect the quality of the community and environment. The Development Plan includes The Sunny -Cal Specific Plan which was approved for the Property by the City on August 21, 2007, for which the City prepared and certified the Environmental Impact Report for the Sunny -Cal Specific Plan, Annexation, and Sphere of Influence Amendment (State Clearinghouse No. 2004121092"), adopted Findings of Fact, Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program (collectively the "EIR"). As part of that process of approving the Development Plan, the City has prepared and reviewed the EIR, pursuant to the California Environmental Quality Act ("CEQA"), with respect to the potential significant impacts of the Project resulting from its annexation to the City. The City has determined, based on that review, that the EIR adequately addresses the potential significant impacts of the Project, and that accordingly neither a supplemental nor subsequent environmental impact report is required for the Development Plan and this Agreement.

G. All of the proceedings relating to the approval of this Agreement have been conducted in accordance with the Development Agreement Law.

I-1. On August 21, 2007, the City Council of the City adopted Ordinance No. 918 approving this Agreement with the Owner, as an inducement for the Owner to support annexation of the Property to the City.

1. The terms and conditions of this Agreement have undergone extensive review by the City and its City Council and have been found to be fair, just and reasonable, and the City has found and determined that the execution of this Agreement is in the best interest of the public health, safety and general welfare of the City and its residents and that adopting this Agreement constitutes a present exercise of its police power.

AGREEMENT
In light of the foregoing Recitals, which are an operative part of this Agreement, the parties agree as follows:
1 DEFINITIONS.
"Agreement" is this Pre -Annexation and Development Agreement. "Agreement Date" is the date this Agreement is approved by the City Council. "Alternative Financing Mechanism" has the meaning given that phrase in Section 10.8 below.
"CEQA" is the California Environmental Quality Act. Public Resources Code Section 21000, et .seq.
"CFD" is a Community Facilities District formed pursuant to the Mello Roos Community Facilities Act of 1982, Government Code Section 53312, et seq. "City" is the City of Beaumont, California

"City's Discretion" is discretion exercised by the City in accordance with the policies and principles set forth in the Development Plan, this Agreement and the procedures in effect as of the Effective Date such that the approvals given by the City to the Owner pursuant to the exercise of such discretion shall not be unreasonably withheld or delayed. "Development Agreement Law" is Government Code Sections 65864, et seq., and Resolution No. 1987-34, titled "Establishing Procedures and Requirements for Consideration of Development Agreements."
"Development Plan" is, collectively, the permits and approvals listed on Exhibit "C."
"Effective Date" is that date which is the later to occur of (a) the expiration of the time for filing a referendum petition relating to this Agreement if no such petition is filed within such period, and (b) the certification of the results of a referendum election are declared approving this Agreement if a referendum petition is filed within the applicable period, or (c) the date that the annexation of the Property to the City is completed. "EIR" is, collectively, the Sunny -Cal Specific Plan, Annexation, and Sphere of Influence Amendment Environmental Impact Report (State Clearinghouse No. 2004121092) certified by the City on August 21, 2007, prepared for the Project and dated August 18, 2006, Findings of Fact, Statement of Overriding Considerations, and the Mitigation Monitoring and Reporting Program adopted by the City on August 21, 2007, copies of the EIR are on file with the City.
"Owner" is Sunny -Cal Egg & Poultry. Inc., a California corporation and Manheim, Manheim & Berman, a California general partnership, and their successors in interest to all or any part of the Property.
"Project" is the proposed development of the Property included within the Development Plan and associated amenities, including, without limitation, on -site and off -site improvements contemplated by the Development Plan, as the same may be further defined, enhanced or modified pursuant to the provisions of this Agreement. "Property" is the real property on which the Project is, or will be, located as described on Exhibit "A" attached hereto and shown on Exhibit "B" attached hereto 2 EXHIBITS. The following documents are referred to in this Agreement, attached hereto and incorporated herein by this reference:

Exhibit Designation Description
A Legal Description of the Property
B Map of the Property
C List of Permits and Approvals
I) City Conditions of Approkal
1: Statement of Benefits to the City

3 MUTUAL BENEFITS. This Agreement is entered into for the purpose of annexing the Property to the City and implementing the Development Plan for the Project in a manner that will secure certain assurances to the Owner that the Property may be developed in accordance with the Development Plan and this Agreement, and certain benefits to the City as set forth on Exhibit "E" as set forth in this section. The City and the Owner agree that, due to the size and duration of the Project, the Agreement is necessary to achieve those desired benefits. 4 INTEREST OF THE OWNER. The Owner represents that the Owner owns fee title to the Property.
5 BINDING EFFECT OF AGREEMENT. The terms and conditions of this Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns as set forth herein
6 PROJECT AS A PRIVATE UNDERTAKING. It is specifically understood and agreed that the development of the Project is a private and not a public sector development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between the City and the Owner is that of a government entity regulating the development of private property by the owner of such Property 7 TERM. The term of this Agreement shall be twenty five (25) years following the Effective Date. Expiration of the term of this Agreement shall not in any manner affect rights which have otherwise vested under applicable law
8 HOLD HARMLESS. The Owner shall hold the City, its officers, agents, employees and representatives harmless from liability for damage or claims for damage for personal injury, including death and claims for property damage, arising on the Property from the wrongful or negligent activities of the Owner or those of the Owner's contractors, subcontractors, agents, cmplo)ees or other persons acting on the Owner's behalf which relate to the Project. In the event any person not a party or a successor to a party to this Agreement institutes any type of action against the City with respect to this Agreement, City and Owner shall cooperate in defending against the action, provided that City may, in its sole discretion, elect to tender the defense of such action to the Owner. If the Owner accepts the tender, the Owner shall thereafter hold City harmless from and defend City from all costs and expenses incurred in the defense of such action, provided that City frilly cooperates with the Owner in the defense of such action. If the Owner declines the tender, then City shall have no further obligation or duty to defend the action. 9 VESTED RIGHT. By entering into this Agreement the City grants to the Owner a vested right to develop the Property in accordance with the Development Plan. The City shall not enact and enforce against the Project an ordinance, policy, rule, regulation or other measure which significantly alters the rate, type, manner, density, timing or sequencing of the Project. In addition to and not in limitation of the foregoing, it is the intent of the Owner and the City that no moratorium, whether relating to the rate, type, manner, density, timing or sequencing of the Project and whether or not enacted by initiative or otherwise, except a moratorium imposed by the City to implement State or Federal laws, statutes, regulations, policies or orders as provided in Section 11.2, affecting parcel or subdivision maps, building permits, plot plans, special use 4

permits, conditional use permits, occupancy certificates or other entitlements to use or permits approved, issued or granted within the City, or portions of the City, shall apply to the Project to the extent such moratorium or other limitation is in conflict with the Development Plan.

Notwithstanding the foregoing, should an ordinance, general plan or zoning amendment, measure, moratorium, policy, rule, regulation or other limitation enacted by the citizens of the City through the initiative process be determined by a court of competent jurisdiction to invalidate or prevail over all or any part of the Development Plan, the Owner shall have no recourse against the City pursuant to this Agreement The foregoing shall not be deemed to limit the Owner's right to appeal any such determination of such ordinance, general plan or zoning amendment, measure, policy, rule, regulation, moratorium or other limitation which purports to invalidate or prevail over all or any part of this Agreement. 10 DEVELOPMENT OF THE PROJECT.

10.1 Annexation. The City and the Owner shall cooperate and use their best reasonable efforts to cause the Property to be annexed into the City, subject only to terms and conditions set forth in the Development Plan and Exhibit "D" hereto, and the mitigation measures set forth in the EIR.

10.2 Phasing and Timing of Development. When or the order in which Project phases will be developed, or whether it will be developed at all, depend upon numerous factors which are not within the control of the Owner or City, such as market orientation and demand, interest rates, availability of funding, competition and other similar factors. Accordingly, to the extent permitted by the Development Plan and this Agreement, the Owner shall have the right to develop the Project in phases in such order and at such times as the Owner, in its sole discretion. deems appropriate within the exercise of its subjective business judgment; provided, however, that the City reserves the right to review, condition and approve each phase through discretionary and ministerial approvals consistent with this Agreement.

10.3 Effect of Agreement on Land Use Regulations. The rules, regulations and policies governing permitted uses of property, the density and intensity of use of property, the maximum height and size of proposed buildings and the design, improvement, construction and development standards and specifications applicable to development of property are those rules, regulations and policies in force as of the date of the Agreement, and those rules, regulations and official policies which may hereinafter be adopted by the City in accordance with Section 11.1 hereof or State or Federal laws, statutes, regulations, policies or orders as provided in Section 11.2.

10.4 Application Processing. In connection with any approval which the City is permitted or has the right to make under this Agreement relating to the Project, or otherwise under its rules, regulations and official policies, the City shall excise the City's Discretion or take action in a manner which is as expeditious as reasonably possible.

10.5 Administrative Changes and Amendments. The parties acknowledge that further planning and development of the Project may demonstrate that refinements and changes are appropriate with respect to the details of the Project or interpretation of the Development Plan.

If and when the parties find that minor changes or adjustments are necessary or appropriate to the Project or the Development Plan, they shall, unless otherwise required by law, effectuate such 5

changes or adjustments through administrative amendments approved by the Director of Planning, which, after execution, shall be attached hereto as addenda and become a part hereof, and may be further changed and amended from time to time as necessary, with approval by the Director of Planning as may be requested by the Owner. Minor changes or amendments shall be those which are consistent with the overall intent of the Development Plan and this Agreement and which do not materially alter the overall nature, scope, or design of the Project. Any such minor administrative changes or amendments shall not be deemed to be an amendment to this Agreement under Government Code Section 65868 and, unless otherwise required by law, no such administrative amendments shall require prior notice or hearing

10.6 Mello Roos Communities Facilities Districts; Other Assessment Districts or Financing Mechanisms. Pursuant to Chapter 2.5 (commencing with Section 53312) 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," the Owner may, at its sole election, petition the City Council of the City or a joint powers agency in which the City is a member to establish a Community Facilities District ("CFD"), in accordance with the City's policies in existence on the Effective Date. Alternatively, or in addition thereto, the Owner may request that the City initiate and complete proceedings under the Municipal Improvement Act of 1911, the Municipal Improvement Act of 1913, the Improvement Bond Act of 1915, the Landscaping and Lighting Act of 1972, or any and all other available public financing mechanisms, to provide public conduit financing for the construction of public infrastructure improvements on the Property ("Alternative Financing Mechanisms"). If so requested by the Owner, the City shall cooperate with the Owner (or, for matters beyond its control, shall use its best efforts) in taking all steps necessary to cause the CFD or Alternative Financing Mechanisms to issue bonds for such purposes. If the Property is included within a CFD or Alternative Funding Mechanism with other surrounding properties, the special taxes or special assessments burdening the various properties so included shall be apportioned on a fair share basis related to the benefit derived by each of such properties in accordance with City policies at the time such property is included.

10.7 Public Services and Facilities. l he Development Plan requires an integrated roadway system, and other public facilities including parks, schools, storm drains, and water and sewer facilities. City will reasonably assist Owner in obtaining public facilities and services for the Project on a timely basis in keeping with the pace of development of the Property. To the extent that the Owner constructs, installs or provides financing for public facilities or other public infrastructure improvements that benefit lands outside of the Property, the City shall use best reasonable efforts to adopt such ordinances, mitigation fees, liens or assessments as are necessary to provide credits, reimbursements, or in kind funding to the Owner for the fair share of the benefits conferred upon such lands other than the Property by such public facilities or infrastructure improvements.

10.8 Other Governmental or Quasi Governmental Permits. The Owner shall apply for such other permits and approvals as may be required by other governmental or quasi governmental agencies having jurisdiction over the Project (such as public utilities or utility districts, or other federal or state agencies) to the extent required for the development of, or provision of services and facilities to the Project as set forth in the Development Plan The City shall cooperate with and assist the Owner in obtaining such permits and approvals, and, where

necessary in making application for such approvals or permits. The Owner shall be solely responsible for all costs and shall be responsible for the processing of all such permits.

10.9 Consistency Between This Agreement and Current Laws. The City represents that as of the date of the execution of this Agreement, there are no rules, regulations, ordinances or official policies of the City that would interfere with the development of the Project according to the Development Plan, provided the Property is annexed into the City.

10.10 Assessments, Fees, Mitigation and Exactions. The City shall not impose any future assessment, fee, mitigation measure or exaction on the Project or any portion thereof except (a) those existing and proposed assessments, fees, mitigation measures and exactions included in Exhibit "C", (b) such other fees, assessments and exactions as may be adopted or imposed by the City in conformance with the requirements of Article X111 D of the California Constitution, (c) such other development impact fees or categories of development impact fees which are adopted on a City or County wide basis or as required as a condition to obtaining County funding, such as the County of Riverside Traffic Uniform Mitigation Fee; and (d) such other development impact fees or categories of development impact fees which are imposed on other development projects in the City and are adopted and levied based on a benefit assessment. Fees payable to City shall be at rates applicable on the date the fee is paid. City shall recognize and apply a dollar for dollar in lieu credit against any and all fees, for and equal to the cost of improvements and/or dedications made in the development of the Project by the Owner, or funded by any CFD or Alternative Funding Mechanism including the Property, and for which the fees would otherwise be imposed. City further agrees to use any fees paid with respect to development of the Project to fund improvements which benefit the Project, to the fullest reasonable extent available and applicable under the law.

10.11 Reimbursement by the City. Pursuant to Government Code Section 65865.2, the City hereby agrees that as future development fees, assessments and exactions are imposed on future projects which have benefited from the fees, assessments and exactions paid by the Owner, the City shall promptly reimburse the Owner to the extent that such fees, assessments and exactions paid by Owner benefited lands outside of the Property, but only to the extent that the City actually receives or collects such fees, assessments or exactions for a period of ten years from the date the fee was paid.
11 RULES, REGULATIONS, REQUIREMENTS AND OFFICIAL POLICIES.

11.1 New Rules. This Agreement shall not prevent the City from applying the following new rules. regulations, requirements and policies, if applied on a City-wide or area of benefit basis:
1 1.1.1 Processing fees and charges imposed by the City which cover only the estimated actual costs to the City of processing applications for development approvals, for monitoring compliance with any development approvals or for monitoring compliance with environmental impact mitigation measures.

11.1.2 Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals and any other matter of procedure, provided that such changes in procedural regulations do not 7

have the effect of materially interfering with the benefits conferred by this Agreement.

11.1.3 Regulations governing construction standards and specifications including, without limitation, the City's Building Code, Plumbing Code, Mechanical Code, Electrical Code and Fire Code.

11.1.4 Regulations which are necessary to protect public health and safety, provided that to the maximum extent possible such regulations shall be designed, construed and applied in a manner to preserve the benefits of this Agreement.

11.1.5 New or increased fees or categories of fees imposed as a condition of development, for the purpose of defraying all or a portion of the cost of public facilities (as defined in Government Code Sections 66000, et seq.) related to development projects.

11.1.6 Regulations which are in conflict with the Development Plan or this Agreement if such regulations have been consented to in writing by the Owner.

11.2 State and Federal Laws. In the event that State or Federal laws or regulations enacted after this Agreement is executed prevent or preclude compliance with one or more of the provisions of this Agreement, such provisions of this Agreement shall be modified or suspended as may be necessary to comply with such State or Federal laws or regulations; provided, however, that this Agreement shall remain in full force and effect to the extent it is not inconsistent with such laws or regulations and to the extent such laws or regulations do not render such remaining provisions impractical to enforce. 12 AMENDMENT OR CANCELLATION OF AGREEMENT. This Agreement may be amended or canceled in whole or in part only by mutual consent of the parties in the manner provided for in Government Code Section 65868.
13 ENFORCEMENT. Unless amended or canceled as provided in Section 12 above, or modified or suspended pursuant to Government Code Section 65869.5, this Agreement is enforceable by either party hereto notwithstanding any change in any applicable general or specific plan, zoning, or subdivision regulation or standard adopted by the City (or by the voters of the City unless found by a court of competent and final jurisdiction to prevail over this Agreement) which alters or amends the Development Plan or is inconsistent with this Agreement.
14 PERIODIC REVIEW OF COMPLIANCE WITH AGREEMENT. The City shall review this Agreement at least once every year from the date this Agreement is executed.

During each periodic review, each party is required to demonstrate good faith compliance with the terms of this Agreement. Such periodic review shall be conducted administratively by the City Manager and any appropriate department heads designated by the City Manager to perform such periodic review. If the City Manager finds that the Owner is not in good faith compliance with this Agreement, the Owner shall have the right to appeal such finding to the City Council.

The City Council on appeal shall not hold a public hearing to review a finding that the Owner is not in good faith compliance with this Agreement unless so requested by the Owner in writing at the time of the submission of such appeal. The City shall notify the Owner in writing of the date 8

for review at least thirty (30) days prior thereto. The Owner shall pay or reimburse the City for the City's reasonable costs incurred in connection with such periodic reviews. 15 EVENTS OF DEFAULT.

15.1 Default by the Owner. If the City Council determines on the basis of substantial evidence upon appeal of the City Manager's decision pursuant to Section 14 hereof that the Owner has not complied in good faith with the terms and conditions of this Agreement, it shall, by written notice to the Owner, specify the manner in which the Owner has failed to so comply and state the steps the Owner must take to bring itself into compliance. If, within sixty (60) days after the effective date of notice from the City specifying the manner in which the Owner has failed to so comply, the Owner does not commence action reasonably necessary to bring itself into compliance as required and thereafter diligently pursue such steps to completion, then the Owner shall be deemed to be in default under the terms of this Agreement and the City may, if such failure persists after thirty (30) days' prior written notice, exercise its rights and remedies pursuant to Section 15.3.

15.2 Default by the City. If the Owner determines on the basis of substantial evidence that the City has not complied in good faith with the terms and conditions of this Agreement, the Owner shall, by written notice to the City, specify the manner in which the City has failed to so comply and state the steps the City must take to bring itself into compliance. If, within sixty (60) days after the effective date of notice from the Owner specifying the manner in which the City has failed to so comply, the City does not commence steps reasonably necessary to bring itself into compliance as required and thereafter diligently pursue such steps to completion, then the City shall be deemed to be in default under the terms of this Agreement and if such failure persists after thirty (30) days prior written notice, the Owner may terminate this Agreement or seek specific performance as set forth in Section 15.3.

15.3 Specific Performance Remedy. Due to the size, nature and scope of the Project, it will not be practical or possible to restore the Property to its natural condition following development of all or any portion of the Property. After such development, the Owner may be foreclosed from other choices it may have had to utilize the Property. The Owner has invested significant time and resources and performed extensive planning and processing of the Project in agreeing to the terms of this Agreement and will be investing substantially more time and resources in implementing the Project in reliance upon the terms of this Agreement. It would be difficult or impossible to accurately determine the sum of money which would adequately compensate the Owner for such efforts. For the above reasons, the City and the Owner agree that damages alone would not be an adequate remedy if the City fails to carry out its obligations under this Agreement. Similarly, if the Owner breaches certain of its obligations hereunder, monetary damages may not constitute an adequate remedy for the City. Therefore, the parties agree that specific performance of this Agreement is an appropriate remedy if either party defaults and fails to perform its non -monetary obligations under this Agreement. Similarly, if the Owner breaches certain of its obligations hereunder, monetary damages may not constitute an adequate remedy for the City. Therefore, the parties agree that specific performance of this Agreement is an appropriate remedy if either party defaults and fails to perform its non -monetary obligations under this Agreement. Notwithstanding the foregoing. nothing in this Agreement is intended to prevent either party from seeking recovery of appropriate damages in the event that the terns of this Agreement are breached. The City and the Owner acknowledge that if the Owner is in 9

default of its obligations under this Agreement, the City shall have the right to refuse to issue any permits or other approvals to which the Owner would not otherwise have been entitled but for this Agreement.
16 INSTITUTION OF LEGAL ACTION. In addition to any other rights or remedies, either party may institute legal action to cure, correct or remedy any default, to enforce any covenants or agreements herein, to enjoin any threatened or attempted violation hereof, to recover damages for any default or to obtain any other remedies consistent with the purpose of this Agreement. Any such legal action shall be brought in the Superior Court of the State of California for the County of Riverside. The parties hereto waive any right to trial by jury. 17 WAIVERS AND DELAYS.

17.1 Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, and failure by a party to exercise its rights upon a default by the other party hereto, shall not constitute a waiver of such party's right to demand strict compliance by such other party in the future.

17.2 Third Parties. Nonperformance shall not be excused because of a failure of a third person except as provided in Section 17.3 below.

17.3 Force Majeure. Neither party shall be deemed to be in default for failure or delay in performance of any of its obligations under this Agreement if caused by floods, earthquakes, other Acts of God, fires, wars, riots or similar hostilities, strikes, other labor difficulties, government regulations (other than actions by the City in violation of or not consistent with the terms and provisions of this Agreement) or other causes beyond either of the parties' control. If any such event shall occur, the term of this Agreement and the time for performance by the Owner of any of its obligations hereunder or pursuant to the Development Plan shall be extended by the period of time that such events prevent or delay development of the Project. 18 NOTICES. All notices required or provided for under this Agreement shall be in writing and delivered in person and deposited in the United States mail, postage prepaid and addressed as follows:

To the City:

With a copy to:

To the Owner:

The City of Beaumont
550 East Sixth Street
Beaumont, California 92223
Attn: City Manager
Mr. Joseph Aklufi, Esq.

Aklufi & Wysocki
3403 Tenth Street, Suite 610
Riverside, CA 92501
Sunny -Cal Egg & Poultry, Inc.
37251 Cherry Valley Boulevard
Cherry Valley, CA 92223
Attn: Kathi L. Berman
10

With a copy to:

Best Best & Krieger, LLP
3750 University Avenue, Suite 500
Riverside, CA 92502
Attn: Michael Grant, Esq.

Any party may change its address stated herein by giving notice, in writing, to the other parties. 19 ATTORNEYS' FEES. If legal action is brought by either party against the other for breach of this Agreement, or to compel performance under this Agreement, the prevailing party shall be entitled to an award of reasonable attorneys' fees and costs. 20 TRANSFERS AND ASSIGNMENTS.

20.1 Right to Assign. The Owner shall have the right to sell, assign or transfer this Agreement and any and all of its rights, duties and obligations hereunder, in whole or in part, to any person or entity at any time during the term of this Agreement; provided, however, in no event shall the rights, duties and obligations conferred upon the Owner pursuant to this Agreement be at any time so transferred or assigned except through a transfer of an interest of the Owner in the Property or a portion thereof. An assignment shall not be effective without the City's prior approval, which shall not be unreasonably withheld, to ensure that the assignment will not prevent the orderly development of the Project consistent with the Agreement or Development Plan. In the event of any such assignment, the transferee shall thereafter be solely liable for the performance of all obligations of the Owner relating to the portion of the Property, or interest therein, so transferred. Such transferee or the Owner shall notify the City, in advance, and in writing of their intent to transfer such obligations.

20.2 Release Upon Transfer. Upon the sale,transfer or assignment of the Owner's rights and interests under this Agreement as permitted pursuant to Section 20.1, the Owner shall be released from its obligations under this Agreement and all of the Owner's obligations pursuant to the Development Plan, or other agreements assumed by transferee with respect to the Property, or portion thereof so transferred, provided that (a) the Owner is not then in default under the Agreement, (b) the Owner or transferee has provided the City notice of such transfer and (c) the transferee executes and delivers to the City a written agreement in which (i) the name and address of the transferee is set forth and (ii) the transferee expressly and unconditionally assumes all of the obligations of the Owner under this Agreement with respect to the Property, or a portion thereof, so transferred. Regardless of whether such notice is given or such documents are executed by the transferee, no such sale, transfer or assignment shall relieve the City from any of its obligations hereunder.
21 COOPERATION IN THE EVENT OF LEGAL CHALLENGE. In the event of any legal action instituted by a third party or other governmental entity or official challenging the validity of this Agreement or any portion thereof the parties hereby agree to cooperate in defending such action, subject to the provisions of Section 8. In the event of any litigation challenging the effectiveness of this Agreement, or any portion hereof, this Agreement shall remain in full force and effect while such litigation, including any appellate review, is pending. 22 EMINENT DOMAIN. No provision of this Agreement shall be construed to limit or restrict the exercise by the City of its power of eminent domain. 11

23 AUTHORITY TO EXECUTE. The person or persons executing this Agreement on behalf of the Owner warrant and represent that they have the authority to execute this Agreement on behalf of the Owner and to bind the Owner to the performance of its obligations hereunder. 24 ESTOPPEL CERTIFICATES. The City shall at any time, upon not less than thirty (30) days' prior written notice from the Owner, execute, acknowledge and deliver to the Owner a statement in writing (i) certifying that this Agreement is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Agreement, as so modified, is in full force and effect); (ii) certifying the amounts of the fees, assessments and exactions that have been received from the Owner and what amounts, if any, remain outstanding; and (iii) acknowledging that there are not. to the City's knowledge, any defaults if any are claimed. Any such statement may be conclusively relied upon by any prospective purchaser, lender or joint venture partner.
25 RECORDATION. This Agreement and any amendment or cancellation hereto shall be recorded in the Official Records of the County of Riverside, by the City Clerk within the period required by Section 65868.5 of the Government Code.
26 PROTECTION OF MORTGAGE HOLDERS. The parties hereto agree that this Agreement shall not prevent or limit the Owner, in any manner, at the Owner's sole discretion, from encumbering the Property or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Property.

The City acknowledges that the lenders providing such financing may require certain interpretations, estoppel certificates and modifications to this Agreement and agrees upon request, from time to time, to meet with the Owner and representatives of such lenders to negotiate in good faith any such request for interpretations, estoppel certificates or modifications.

The City will not unreasonably withhold its consent to any such requested interpretation, estoppel certificate or modification provided the same is consistent with the intent and purposes of this Agreement. The holder(s) of any mortgage, deed of trust or other security instrument encumbering the Property (each, a "Mortgagee") shall have the following rights and privileges:

26.1.1 Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any mortgage on the Property made in good faith and for value, unless otherwise required by law.

26.1.2 Any Mortgagee which has submitted a request in writing to the City in the manner specified herein for giving notices, shall be entitled to receive written notification from City of any default by the Owner in the performance of the Owner's obligations under this Agreement.

26.1.3 If the City timely receives a request from a Mortgagee requesting a copy of any notice of default given to the Owner under the terms of this Agreement, the City shall provide a copy of that notice to the Mortgagee within ten (10) days of sending the notice of default to the Owner. If the cure period for a default by the Owner set forth in Section 15.1 above has expired and such default has not been cured, the Mortgagee shall be provided with an additional thirty (30) day period after the expiration of such cure period in which to commence all steps reasonably necessary to bring the Owner in compliance as required under this Agreement and 12

thereafter diligently pursue such steps to completion. During such cure period, and if the default is ultimately cured, the City shall not terminate this Agreement.

26.1.4 Any Mortgagee who comes into possession of the Property, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, shall take the Property, or part thereof subject to the terms of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, no Mortgagee shall have an obligation or duty under this Agreement to perform any of tile Owner's obligations or other affirmative covenants of the Owner hereunder, or to guarantee such performance; provided, however, that to the extent that any covenant to be performed by the Owner is a condition precedent to the performance of a covenant by City, the performance thereof shall continue to be a condition precedent to City's performance hereunder, and further provided that any sale, transfer or assignment by any Mortgagee in possession shall be subject to the provisions of this Agreement.
27 SEVERABILITY OF TERMS. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to enforce.
28 SUBSEQUENT AMENDMENT TO AUTHORIZING STATUTE. This Agreement has been entered into in reliance upon the provisions of the Development Agreement Law in effect as of the Agreement Date. Accordingly, subject to Section 11.2 above, to the extent a subsequent amendment to the Development Agreement Law would affect the provisions of this Agreement, such amendment shall not be applicable to the Agreement unless necessary for this Agreement to be enforceable or unless this Agreement is modified pursuant to the provisions set forth in the Agreement and Government Code Section 65868 in effect on the Agreement Date. 29 INTERPRETATION AND GOVERNING LAW. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. Unless otherwise provided, any ambiguity concerning the content or application of the Development Agreement, arising as a result of any apparent conflict between (a) the conditions, terms and requirements to be applied by City under the Development Agreement and (b) the conditions, terms and requirements previously imposed on the Project by the County of Riverside, shall be resolved by the City's Planning Director, subject to the appeal procedure set forth in the Development Code for appeals of staff determinations. 30 SECTION HEADINGS. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 31 INCORPORATION OF RECITALS AND EXHIBITS. Recitals A through I and attached Exhibits "A" through "E" are hereby incorporated herein by this reference as though set forth in full.

32 RULES OF CONSTRUCTION AND MISCELLANEOUS TERMS.

32.1 Gender. The singular includes the plural; the masculine gender includes the feminine; "shall" is mandatory, "may" is permissive.

32.2 Time of Essence. Time is of the essence regarding each provision of this Agreement in which time is an element.

32.3 Cooperation. Each party covenants to take such reasonable actions and execute all documents that may be necessary to achieve the purposes and objectives of this Agreement.

The parties have executed this Development Agreement on the date and year first written above.
"City"
THE CITY OF BEAUM 'NT, a municipal
corporation of the State of ali
By:
ayo
"Owner"
SUNNY -CAL EGG & POULTRY, INC., a
California corporation
By:

By:
iar'u; 16)-mayl
[SIGNATURES CONTINUED ON FOLLOWING PAGE]
14

32 : RULES OF CONSTRUCTION AND MISCELLANEOUS TERMS.

32.1 Gender. The singular includes the plural; the masculine gender includes the feminine; "shall" is mandatory, "may" is permissive.

32.2. Time of Essence. Time is of the essence regarding each provision of this Agreement in which time is an element.

32.3. Cooperation. Each party covenants to take such reasonable actions and execute all documents that may be necessary to achieve the purposes and objectives of this Agreement.

The parties have executed this Development Agreement on the date and year first written above.
"City"
THE CITY OF BEAUMNT, a municipal
corporation of the State ol Ca • -• is
SUNNY -CAL EGG & POULTRY, INC., a
California corporation
[SIGNATURES CONTINUED ON FOLLOWING PAGE]
9 -

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
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v -v -v -v -v-•
State of California
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County of e" ide ,
On N941 Zia-- before me,
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personally appeared
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?I: KAREE TRINIDAD
Commission # 1930226
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Riverside County
My Comm. Expires Apr 22 _2015 C
who proved to me on the basis of satisfactory
evidence to be the person whose name is`/a�
subscribed to the within instrument and acknowledged
to me that he Jtb e9 executed the same in
hisefithir authorized ca city j, and that by
his/ t r signature, er on the instrument the
persorl�r the entity upon behalf of which the
perso I sacted, executed the instrument.

I certify under PENALTY OF PERJURY under the
laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

Signature:

OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document.

Signat e of Notary Public
Place Notary Seal Above
Description of Attached Document
Title or Type of Document:

Document Date:

Signer(s) Other Than Named Above:

Capacity(ies) Claimed by Signer(s)
Signer's Name:
❑ Corporate Officer — Title(s):
❑ Individual
❑ Partner — ❑ Limited ❑ General
❑ Attorney in Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:

Signer Is Representing:
ti
Number of Pages:

Signer's Name:
❑ Corporate Officer — Title(s):
❑ Individual
❑ Partner — ❑ Limited ❑ General
❑ Attorney in Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:

Signer Is Representing:

RI HT THUMBPRINT

OF SIGNER
Top of thumb here
© 2010 National Notary Association • NationalNotary.org • 1 -800 -US NOTARY (1-800-876-6827) Item #5907

MANHEIM, MANHEIM & BERMAN, a
California general partnership
By:

SIGNED AND CERTIFIED THAT A COPY OF

THIS DOCUMENT HAS BEEN DELIVERED TO

THE MAYOR AND THE CITY COUN IL
By: 61,2„44,
City Clerk
G

MANHEIM, MANHEIM & BERMAN, a
California general partnership
By:

By:

SIGNED AND CERTIFIED THAT A COPY OF

THIS DOCUMENT HAS BEEN D LIVERED TO
THE MAYOR AND T. 1 CITY CO NCIL
By: _1
City Clerk
4

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of
v-- �-- v--v-Y-"y--v-•
On 9.1 l (9— before me,
De
personally appeared
}
CIVIL CODE § 1189
tAi dad, Fig l0I.z`L,.

Hetre Insert Name sand Title of the Officer
L
Name(s) of Signer(s)

KA REE TRINIDAD
Commission # 1930226 1
Notary Public - California
Riverside County
grogo.rwovrivirwMy Comm. Expires Apr 22. V
Place Notary Seal Above
who proved to me on the basis of satisfactory
evidence to be the personprwhose nam s1are'"
subscribed to the within instrument and acknowledged
to e that ,I she/j executed the same in
her/t Ir authorized capacityaes< and that by
der/tKir signature on the instrument the
perso
person acted, executed the instrument.
or the entity upon behalf of which the
I certify under PENALTY OF PERJURY under the
laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

Signature:

OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document.

Description of Attached Document
Title or Type of Document:

Document Date: Number of Pages:

Signer(s) Other Than Named Above:

Capacity(ies) Claimed by Signer(s)
Signer's Name:
❑ Corporate Officer — Title(s):
❑ Individual
❑ Partner — ❑ Limited ❑ General
❑ Attorney in Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:

Signaturepf Notary Public
Signer Is Representing:

S •\_.•\_.._..._.._.._
Signer's Name:
❑ Corporate Officer — Title(s):
❑ Individual
❑ Partner — ❑ Limited ❑ General
❑ Attorney in Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:

Signer Is Representing:
ti ti. ..... ....

RIGHT THUMBPRINT

OF SIGNER
Top of thumb here
© 2010 National Notary Association • NationalNotary.org • 1 -800 -US NOTARY (1-800-876-6827) Item #5907

STATE OF CALIFORNIA
COUNTY OF a�
On R-1 t if - °‚ z before me,eA rvooe•'W 4-e -6- i -+ -Y (here insert name and title of the officer), personally appeared.r'4 •a6 --z '1' , who proved to me on the basis of satisfactory evidence to be the person(sj-whose nameFs-)-is/am.subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/herr/thy authorized capacity(i ), and that by his/herr/tb r signature(s)-en the instrument the person{s), or the entity upon behalf of which the person(s)-acted, executed the instrument.

I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature &''r� ���ca..
(Seal)

RANDOLPH EDELMAN
Commission # 1863472
Notary Public - California
Los Angeles County
My Comm. Expires Sep 30, 2013

STATE OF CALIFORNIA
COUNTY OF .<0"0- S rYC d -/mss
ye°C4 9Cit
On '44 C is •?e t. before me, 404 "dig FOte-0"4'%' (here insert name and title of the officer), personally appeared kos1-7,1 ,erE .- I' +r , who proved to me on the basis of satisfactory evidence to be the personO whose namejs) is/age subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity((es), and that by Iis/her/the,h_signature(s) on the instrument the persons,), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature �a*-n- �s � Cn4.•,

RANDOLPH EDELMAN
Commission # 1863472
Notary Public - California
Los Angeles County
My Comm. Expires Sep 30, 2013
(Seal)

Exhibit A-1-1

EXHIBIT A-2

LEGAL DESCRIPTION OF THE PROPERTY
t;-2-1

EXHIBIT A

LEGAL DESCRIPTION OF THE PROPERTY
ARC EL ..:

THAT PORTION OF THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 29, TOWNSHIP 2 SOUTH, RANGE 1 WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT EN THE QUARTER SECTION LINE RUNNING EAST AND WEST THROUGH SECTIONS 29 AND 30 OF SAID TOWNSHIP AND RANGE, 23 CHAINS AND 90 LINKS EAST OF THE QUARTER SECTION CORNER OF SAID SECTIONS 29 AND 30;
THENCE EAST ON SAID QUARTER SECTION LINE, 10 CHAINS;
THENCE SOUTH 0° 8' EAST, 10 CHAINS; THENCE WEST 10 CHAINS; THENCE NORTH 0° 8' WEST 10 CHAINS TO THE POINT OF BEGINNING; EXCEPTING THEREFROM A RIGHT OF WAY OVER CHERRY VALLEY BOULEVARD;

ALSO EXCEPTING THEREFROM THAT PORTION DEEDED TO THE COUNTY OF RIVERSIDE BY DEEDS RECORDED MARCH 8, I974 AS INSTRUMENT NO. 27055 AND 27056 RESPECTIVELY.

PARCEL B:

THAT PORTION OF THE SOUTHWEST QUARTER OF SECTION 29, TOWNSHIP 2 SOUTH, RANGE 1

WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS:

BEGINNING AT THE NORTHWEST CORNER OF THE LAND DESCRIBED IN THE DEED OF J. VINCENT HANNON, RECORDED JANUARY 281 1909 TN BOOK 276, PAGE 324 OF DEEDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY;
THENCE SOUTHERLY, 313.50 FEET ON THE WEST LINE OF SAID LAND; THENCE WESTERLY, 395.50 FEET; PARALLEL WITH THE NORTH LINE OF SAID SOUTHWEST QUARTER;
THENCE NORTHERLY, 313.50 FEET, PARALLEL WITH SAID WEST LINE TO THE NORTH LINE OF SAID SOUTHWEST QUARTER;
THENCF. EASTERLY 395.50 FEET ON SAID NORTH LINE TO THE POINT OF BEGINNING.

EXCEPT THE WEST 150.00 FEET OF THE NORTH 145.50 FEET THEREOF;

ALSO EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE COUNTY OF RIVERSIDE BY INSTRUMENT RECORDED FEBRUARY 13, 1974 AS INSTRUMENT NO. 17483 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.

PARCEL C:

THE WESTERLY 150.00 FEET OF THE NORTHERLY 145.50 FEET OF THAT CERTAIN PARCEL OF LAND IN THE SOUTHWEST QUARTER OF SECTION 29, TOWNSHIP 2 SOUTH, RANGE 1 WEST, SAN

BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS:

BEGINNING AT THE NORTHWESTERLY CORNER OF THAT CERTAIN TRACT OF LAND CONVEYED TO J. VINCENT HANNON BY JEREMIAH C. HANNON, BY DEED RECORDED JANUARY 28, 1909 IN BOOK 276, PAGE 324 OF DEEDS, RIVERSIDE COUNTY RECORDS;

THENCE SOUTHERLY ON THE WESTERLY LINE OF SAID TRACT OF LAND SO CONVEYED TO HANNON, 313 FEET, 6 INCHES;
THENCE WESTERLY, PARALLEL WITH THE NORTHERLY LINE OF SAID SOUTHWEST QUARTER. 395 FEET, 6 INCHES;

THENCE NORTHERLY, PARALLEL WITH THE WESTERLY LINE OF SAID TRACT SO CONVEYED TO HANNON, 313 FEET, 6 1NCHES, TO THE NORTHERLY LINE OF THE SOUTHWEST QUARTER; THENCE EASTERLY ON THE NORTHERLY LINE OF THE SOUTHWEST QUARTER, 395 FEET, 6 INCHES, TO THE POINT OF BEGINNING.

EXCEPT THAT PORTION CONVEYED TO THE COUNTY OF RIVERSIDE BY DEED RECORDED FEBRUARY 13, 1974 AS INSTRUMENT NO. 17484.

PARCEL D:

THAT PORTION OF THE NORTH HALF OF THE SOUTHWEST QUARTER OF SECTION 29, TOWNSHIP 2 SOUTH, RANGE 1 WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE NORTH LINE OF THE SOUTHWEST QUARTER OF SAID SECTION, A DISTANCE OF 395.50 FEET WEST OF THE NORTHWEST CORNER OF THAT CERTAIN PARCEL DESCRIBED IN DEED TO J. VINCENT HANNON, RECORDED JANUARY 28, 1909 IN BOOK 276, PAGE 324 OF DEEDS,
THENCE CONTINUING WEST, A DISTANCE OF 215.00 FEET ON SAID NORTH LINE TO THE

NORTHEAST CORNER OF THAT CERTAIN PARCEL DESCRIBED IN DEED TO SEBASTIANO CONSALYO, ET UX, RECORDED MARCH 15, 1968 AS INSTRUMENT NO. 23714, OFFICIAL RECORDS; THENCE SOUTH, A DISTANCE OF 313.58 FEET ON THE EAST LINE OF SAID PARCEL TO THE SOUTHEAST CORNER THEREOF;
THENCE EAST, A DISTANCE OF 215.00 FEET, PARALLEL WITH THE NORTH LINE OF THE SOUTHWEST QUARTER OF SAID SECTION;
THENCE NORTH, A DISTANCE OF 313.58 FEET, PARALLEL WITH THE WEST LINE OF SAID HANNOT4 PARCEL, HEREIN ABOVE REFERRED TO, TO THE POINT OF BEGINNING;

EXCEPT THEREFROM THAT PORTION LYING NORTHERLY OF THE SOUTHERLY LINE OF CHERRY

VALLEY BOULEVARD AS DESCRIBED IN THE DEED TO THE COUNTY OF RIVERSIDE, RECORDED FEBRUARY 13, 1974 AS INSTRUMENT NO. 17482 OF OFFICIAL RECORDS OF THE COUNTY OF RIVERSIDE.

PARCEL E:

THE WESTERLY 208.71 FEET OF THE NORTHERLY 1,073.55 FEET OF THE SOUTH HALF OF SECTION 29, TOWNSHIP 2 SOUTH, RANGE 1 WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF.

EXCEPTING THEREFROM THE NORTHERLY 30 FEET IN WOODLAND AVENUE, NOW CHERRY

VALLEY BOULEVARD,

ALSO EXCEPTING THAT PORTION CONVEYED TO THE COUNTY OF RIVERSIDE BY DEED RECORDED NOVEMBER 14, 1975 AS INSTRUMENT NO. 146636
PARCEL F-1:

THAT PORTION OF THE SOUTH HALF OF SECTION 29, TOWNSHIP 2 SOUTH, RANGE 1 WEST, SAN

BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS:

BEGINNING AT THE NORTHWEST CORNER OF SAID SOUTH HALF OF SECTION 29, SAID POINT BEING ALSO A POINT IN THE CENTER OF WOODLAND AVENUE;
THENCE NORTH 89° 33' 30" EAST ON THE CENTER LINE OF WOODLAND AVENUE, 786.12 FEET, MORE OR LESS, TO A POINT DISTANT SOUTH 89° 33' 30" WEST, 791 FEET, FROM THE NORTHWEST CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED TO J. VINCENT HANNON AND JEREMIAH C. HANNON BY DEED RECORDED JANUARY 28, 1909 IN BOOK 276, PAGE 324 OF DEEDS, RIVERSIDE COUNTY RECORDS;
THENCE SOUTH 0° 28' 50" WEST AND PARALLEL WITH THE WESTERLY LINE OF SAID PARCEL CONVEYED TO HANNON, 1975 FEET TO A POINT ON THE NORTHERLY LINE OF THAT CERTAIN PARCEL CONVEYED TO MELVIN F. KLAGUOS AND PAULINE M. KLAGUOS, HUSBAND AND WIFE BY DEED RECORDED AUGUST 4, 1959 AS INSTRUMENT NO. 67500;

THENCE WESTERLY ON THE NORTHERLY LINE OF SAID PARCEL CONVEYED TO KLAGUOS TO A POINT IN THE WEST LINE OF SAID SECTION 29;
THENCE NORTH 0° 07' 40" EAST ON THE WEST LINE OF SAID SECTION 29, TO THE POINT OF BEGINNING;
EXCEPTING THEREFROM THE WESTERLY 208.71 FEET OF THE NORTHERLY 1,073.55 FEET; ALSO EXCEPTING THEREFROM TEE NORTHERLY 30 FEET IN WOODLAND AVENUE, NOW CHERRY VALLEY BOULEVARD.

ALSO EXCEPTING THAT PORTION CONVEYED TO THE COUNTY OF RIVERSIDE BY DEED RECORDED NOVEMBER 14, 1974 AS INSTRUMENT HO. 146646.

F l.,RCEL F-2:

THAT PORTION OF THE SOUTHWEST QUARTER OF SECTION 29, TOWNSHIP 2 SOUTH, RANGE 1

WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS:

COMMENCING AT A POINT ON THE NORTHERLY LINE OF SAID SOUTHWEST QUARTER DISTANT SOUTH 89° 33' 30" WEST, 791 FEET FROM THE NORTHWEST CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED TO 3. VINCENT HANNON BY DEED RECORDED JANUARY 28, 1909 IN BOOK 276, PAGE 324 OF DEEDS, RIVERSIDE COUNTY RECORDS; SAID POINT ALSO BEING DISTANT NORTH 89° 33' 30" EAST 786.12 FEET FROM THE NORTHWEST CORNER OF THE SOUTHWEST QUARTER OF SAID SECTION;
THENCE SOUTH 0° 28' 50" WEST, PARALLEL WITH THE WEST LINE OF THE PARCEL CONVEYED TO

3. VINCENT HANNON 313.5 FEET TO THE TRUE POINT OF BEGINNING;

THENCE EASTERLY ON SAID SOUTHERLY LINE OF THE PARCEL CONVEYED TO GEORGEOUS GEORGE AND ELIZABETH B. GEORGE, BY DEED FILED FOR RECORD AUGUST 21, 1952 AS INSTRUMENT NO. 35786, IN BOOK 1394 PAGE 352 OFFICIAL RECORDS, II FEET;

THENCE SOUTHERLY 1,221.5 FEET TO A POINT ON THE SOUTHERLY LINE OF THAT CERTAIN PARCEL CONVEYED TO FRANK J. FABIAN AND MARY R. FABIAN BY DEED RECORDED NOVEMBER 4, 1939 IN BOOK 434, PAGE 587 OF OFFICIAL RECORDS, RIVERSIDE COUNTY RECORDS, 20.5 FEET OF THE SOUTHWEST CORNER OF SAID PARCEL SO CONVEYED TO FRANK. J. FABIAN AND WIFE; THENCE WEST ON SAID SOUTH LINE 20.5 FEET;
THENCE NORTH 1,221.5 FEET TO THE POINT OF BEGINNING.

PARCEL 17-3:

THAT PORTION OF THE SOUTHWEST QUARTER OF SECTION 29, TOWNSHIP 2 SOUTH, RANGE 1

WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE NORTH LINE OF SAID SOUTHWEST QUARTER DISTANT SOUTH 89° 33' 30" WEST, 791 FEET FROM THE NORTHWEST CORNER OF THAT CERTAIN PARCEL CONVEYED TO J. VINCENT HANNON 8Y DEED RECORDED JANUARY 28, 1909 IN BOOK 276, PAGE 324 OF DEEDS, RIVERSIDE COUNTY RECORDS; SAID POINT ALSO BEING DISTANT NORTH 89° 33' 30" EAST 786.12 FEET FROM THE NORTHWEST CORNER OF SAID SOUTHWEST QUARTER; THENCE SOUTH 0° 28' 50" WEST, PARALLEL WITH THE WEST LINE OF THE PARCEL CONVEYED TO .1. VINCENT HANNON 313,4 FEET;
THENCE NORTH 89° 33' 30" EAST, 30 FETE;
THENCE NORTH 0028' 50" EAST, 313.4 FEET, TO THE NORTH LINE OF SAID SOUTHWEST QUARTER; THENCE SOUTH 89° 33' 30" WEST, 30 FEET TO THE POINT OF BEGINNING; FXCFPTING THEREFROM THE NORTH 30 FEET IN WOODLAND AVENUE, NOW CHERRY VALLEY BOULEVARD.

ALSO EXCEPTING THAT PORTION CONVEYED TO THE COUNTY OF RIVERSIDE BY DEED RECORDED NOVEMBER 14, 1974 AS INSTRUMENT NO. 146646.

PAIECEL G:

THAT PORTION OF THE SOUTHWEST QUARTER OF SECTION 29, TOWNSHIP 2 SOUTH, RANGE 1

WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE NORTHERLY LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 395.50 FEET WESTERLY FROM THE NORTHWEST CORNER OF THAT CERTAIN TRACT, DESCRIBED BY DEED TO J. VINCENT HANNON BY JEREIvIIAH C. HANNON, RECORDED JANUARY 28, 1909 IN BOOK 276, PAGE 324 OF DEEDS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; THENCE WESTERLY ON THE NORTHERLY LINE OF SAID SOUTHWEST QUARTER, 395.50 FEET;

THENCE SOUTHERLY, PARALLEL WITH THE WESTERLY LINE OF THE TRACT OF LAND SO DESCRIBED TO J. VINCENT HANNON, 313.50 FEET;

THENCE EASTERLY, PARALLEL WITH THE NORTHERLY LINE OF SAID SOUTHWEST QUARTER, 395.50 FEET;

THENCE NORTHERLY, PARALLEL WITH THE WESTERLY LINE OF TRACT OF LAND DESCRIBED TO J. VINCENT HANNON, 313.50 FEET TO THE POINT OF BEGINNING;

EXCEPT THAT PORTION DESCRIBED BY DEED TO GEORGEOUS GEORGE, ET UK RECORDED AUGUST 21, 1952 IN BOOK 1394, PAGE 352 AS INSTRUMENT NO. 35786 OF OFFICIAL RECORDS; SAID

WESTERLY PORTION THEREOF BEING DESCRIBED IN SAID DEED TO GEORGEOUS GEORGE AS FOLLOWS:

THE PORTION OF THE SOUTH HALF OF SECTION 29, TOWNSHIP 2 SOUTH, RANGE 1 WEST, SAN

BERNARDINO MERIDIAN, AS SHOWN BY UNITED STATES GOVERNMENT SURVEY, DESCRIBED AS FOLLOWS;
BEGINNING AT A POINT IN THE NORTH LINE OF SAID SOUTH HALF OF SECTION 29, DISTANT SOUTH 89° 33' 30" WEST, 791.00 FEET FROM THE NORTHWEST CORNER OF THE LAND DESCRIBED BY DEED TO J. VINCENT HANNON BY JEREMIAH C. HANNON RECORDED JANUARY 28, 1909 IN BOOK 276, PAGE 324 OF DEEDS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SAID POINT BEING DISTANT NORTH 89° 33' 30" EAST, 786.12 FEET, FROM THE NORTHWEST CORNER OF SAID <SOUTH HALF OF SECTION 29;
THENCE SOUTH 0° 28' 50" WEST, AND PARALLEL WITH THE WESTERLY LINE OF SAID PARCEL DESCRIBED TO J. VINCENT HANNON 313.50 FEET;
THENCE NORTH 89° 33' 30" EAST AND PARALLEL WITH SAID NORTH LINE OF THE SOUTH HALF OF SECTION 29, 30.00 FEET;
THENCE NORTH 0° 28' 50" EAST, 313.50 FEET TO SAID NORTH LINE; THENCE SOUTH 89° 33' 30" WEST, 30.00 FEET TO THE POINT OF BEGINNING; ALSO EXCEPT THE EASTERLY 215.00 FEET THEREOF;

ALSO EXCEPT THAT PORTION IN CHERRY VALLEY BOULEVARD FORMERLY KNOWN AS WOODLAND ROAD.

ALSO EXCEPT THAT PORTION DESCRIBED IN THE DEED TO THE COUNTY OF RIVERSIDE RECORDED JANUARY 20, 1975 AS INSTRUMENT NO. 6757 OF OFFICIAL RECORDS.

PARCEL 1, :

PARCELS 1 TO 7 INCLUSIVE, AND LOTS A TO K, INCLUSIVE OF PARCEL MAP NO. 12218, IN THE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN PARCEL MAP BOOK 85, PAGE 66 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

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SCAL D 1 ..

LIST OF PERWTS AND APPROVALS
Actions and entitlements to implement the Spe ific Plan include:
• Amendment of th.e Sphere of influence and Annexation to the City of'Beaumont • Annexation to Beaumont -Cherry Valley Water District
• Detaclunent from the Riverside County Waste Management Resources District • City of Beaumont General Plan Amendment
• City of Beaumont Sunny -Cal Specific Plan
▪ Prezoning
• Parcel Map
• Tentative Tract Asps
• 'Environmental Impact Report, Findings of Fact, Statement of Overriding Considerations, arid Mitigation Monitoring and Reporting Program
• Grading and Improvement Plans
• Final Map Review, Approval, and Recordation
• Discretionary Approvals
C

SUNNY -CAL

SPECIFIC PLAN
N
CONDmONS OF APPROVAL
GEM-7AL COND Q S
::y

1. 11 following conditions of approval arc: for tio SiJi" NY -CAL SPECIFIC PLAN and nnsisi of Conditions 1 through 34 inclusive,
2, The Sunny -.Cal Specific Plan shall consist of the following, components as approved through City of Beaumont City Council Resolution No. 2007-4b.
a. Approved Sunny -Cal Sp ific Plan Text (final document incorporating all changes made through public hearing process).
b. Final Environmental Impact Report, Findings of Fact and Mitigation Monitoring Pii opa n
c. Specific Plan Conditions of Approval
All mitigation mes.sur s as contained in the Final FIR shill be conditions of approval for the project. Subsequent to the completion of the public hewing process, the Applicant: shall finalize the. Specific Plan to incorporate all changes and modifications, and provide the Director- with five (5) bound and one reproducible copies. of the Specific Plan, text and exhibits, and the Final Environmental Impact Report. Twenty-five(25) compact disks with each of the aforementioned documents shall also be submitted.

3. Warty of the following conditions off approval differ from the specific sn text or exhibits, the conditions enu rnerated herein shall take precedence.
trlitigation measure: for impacts to the Beaumont Unified. School Disoict and my other districts which may ultimately serve the project shall be identified ;prior to the recordation of implementing tentative subdivision maps in accordance with the State laws and City Council policies in effect at the time of application submittal.

5. The development standards contained in the approved Specific Plan shall become the prevailing lend use regulations for the areas contained within the Sunny -Cal Specific Plan.

These regulations will have full form., of the Zoning O dirw,nee of the Beaumont Mviunicipal Code through application of the SPA (Specific Plan Area) ,Zone. Where confic is exist between approved Specific Plan and the Beaumont Zoning Ordinance, the spcific Plan regulation shall prevail. Subject to the veaittg effect of the Development .j einaant, where

SUNNY -CAL SPECIFIC PLAN
Conditions ago Approval
Page
conflicts existing between the Specific Plan and the provisions of the Municipal Code, other than the Zoning Ordinance, the provisions of the Municipal Code shall prevail.

6. Development applications for development portions of the Specific Plan area which incorporate common areas shall be accompanied by design plans for the common area. Such plans shall specify the location and extent of landscaping and irrigation systems. Additionally, all circulation components (vehicular, pedestrian and/or equestrian) shall be indicated, and the approximate locations of structures or groups of structures shall be indicated.

7. A parcel map filed for the purposes of phasing, or financing shall not be considered a development application for the purpose of these conditions.

8. The Planning Director may require special studies or reports in connection with implementing development applications for each planning area, if and to the extern reasonably necessary for appropriate review of a development application or as required under applicable law. Such reports may include, where appropriate:

Study/Report
a. Preliminary Soils and Geotechnical Report
b. Erosion and Sedimentation Control Plan
c. Srzectscape, parkway and median Landscape plan
t. Fencing and wall plan
e Traffic and circulation assessment to document adequacy/function of proposed improvements
f Fuel modification plan
;. Acoustical Study
h. Cultural I esourc,e Assessment

9. Common areas identified in the Specific Plan (i.e., parks, entry features, parkways, medians and open space features) shall be owned and maintained either through a Homeowners' Association or through the City's Community Facilities District (CFD), as approved by the Director of Planing, to ensure the long-term maintenance of such improvements.

SUNNY -CM, SPEC/TIC" `!LAN
Conditions of Approval
Pan 3

10. Prior to issuance of a building permit for the construction of any use contemplated by this approval, any developer shall first obtain clearance from the Planning Department that all pertinent conditions of approval of the specific plan have been satisfied for the subject phase of development.
11, If and to the extent required by applicable law, an environmental assessment shall be conducted for each subsequent development applications including, but not limited to, parcel map, tract, change of zone, plot plan, use permit, variance or specific plan amendment. Said environmental assessment shall, to the greatest extent f sihlt under the California Environmental Quality Act (cEQA), utilize the evaluation of impacts addressed in the E1R prepared for the Sunny -Cal Specific Plan. The Sunny -Cal Specific Plan EIR shall be used as a Program EIR in evaluating, subsequent discretionary entitlement actions.

12. The Sunny -Cal Specific Plan shall remain unmodified (except for modifications requested by the Applicant and approved by the City) for 25 years. Should the entire project not be built out in that period of time, the City shall be entitled to adopt specific plan amendments for any portion of the project which has not been constructed within 25 years. 13 The Applicants (or their successors -in -interest, as the case may be) shall defend, indemnify, and hold harmless the City ofBeaumont, its agents, consultants, officers, and employees from any third -party claim, action or proceeding against the City of Beaumont or this agents, consultants, officers, or employees to attach, set aside, void or annul an approval of the City of Beaumont, its advisory agencies, appeal boards or legislative body concerning the Sunny - Cal Specific Plan. The City of Beaumont will promptly notify the Applicants or their successors of any such claim, action, or proceeding against the City of Beaumont and will cooperate fully in the defense.

14. The Applicants shall defend, indemnify and hold harmless the City of Beaumont and its employees, agents, consultants, officers and contractors from any third -party claim, action or proceeding related to the environmental documentation pursuant to the California Environmental Quality Act associated with the Sunny -Cal Specific Plan.

15. In accordance with Section 711.4 of the California Fish and Game Code, the Applicants/subdividers are obligated to pay a filing fee to defray cost incurred by the Department of Fish and G acne in managing and protecting fish and wildlife trust resources.

The Applicants/subdividers: are also obligated to pay a documentary handling fee to defray costs incurred by the City of Beaumont in implementing the Department of Fish and Game filing fee program. These fees shall be paid to the County Clerk if the County of Riverside at the time of filing a notice of determination pursuant to Section 21152 of the Public Resources Code. Applicants shall not be entitled to exercise their rights under the Specific Plan or the Development Agreement until such fees have been paid. The amount of the fees

SUNNY -CAL C PLAN
Conditions of Appr svai
Pae4
shall be in accordance with legally adopted fees at the time of the filing of the notice of determination.

LAND USE CONDI T 1QNS

16. The Specific Plan may be developed up to a maximum yield of 597 dwelling units. Densities for each Planning Area shown the Specific Plan shall be determined through the appropriate development application, but not limited to, the following:
a. Adequate availability of services;
b. Adequate access and circulation;
ulation;
c. Sensitivity to land forces;
d. Innovation in housing types, design, conservation, or opportunities; and e. Sensitivity to neighborhood design through appropriate lot and street layouts.

Applicants shall, however, be permitted, through the density transfer provisions contained in the Specific Plan; to achieve the overall maximum densities for each Planning Area specified in the Specific Plan, as modified by these conditions of approval.

17. A multi -purpose trail, subject to the design approval of the Planning Director, shall be provided along the entire Brookside Avenue frontage.

18. Lots created pursuant to this specific plan shall be in conformance with the development standards ofthe SPA zone as established by this Specific Pia -nand the corresponding Planning Area standards for each Planning Area. The minimum lot size in the project shall be 7,000 square feet.

19. All grading within the specific plan shall be performed in accordance with the following conditions and development criteria:
a. All grading shall take place in accordance with the City's adopted policies in effect at the time permits are issued and the grading criteria contained la the Specific Plan. b. Where cut and fill slopes are created. in excess of three (3) feet in height, detailed landscaping and irrigation plans shall be submitted to the City prior to approval of grading plans. The plans will be reviewed for type and density of ground cover, seed mix, plant materials, staking details, and sizes and irrigation systems.

20. Applicants shall incorporate the following defensible space concepts into the design of projects which shell be included within all development plans and reviewed and approved by the City Police Department prior to approval of implementing projects:

ti;Y sC i; ' SPECIFIC PLAN
Conditions of Approval
Pages
a. Circulation for pedestrians, vehicles and police patrols. b. Lighting of streets, walkways, bikeways, and coinmercia1 and industrial areas. c. Visibility of doors and windows from the street and between buildings. d. Fencing heights and materials.

21. In the event that, during or following grading ofthe project site or portions thereof, economic or other conditions prevent the Developer(s) from continuing with the project within a reasonable amount of time, as determined by the City, the City shall so notify the Developer(s) who shall contact the City Manning Department to identify necessary activities that the Developer must implement to protect public safety and minimize/prevent environmental degradation, particularly due to wind and water erosion. The Developer(s) shall be required to reimburse the City for the cost of activities to satisfy this condition.

22. Density transfer within the various components of the project and planning areas shall be subject to the limitations contained in the Administrative section ofthe Sunny -Cal Specific Plan. In conjunction with any request to transfer density, the Developer(s) shall submit a report outlining the status of the entire project in terms of (a) areas developed and undeveloped, (b) density previously transferred, and (c) quantitative impact on remaining development entitlement allocations.

23. Each developer shall use its best efforts to ensure that all construction contractors and subcontractors properly dispose of ail wastes generated in permitted landfills or with a licensed recycling company. If any improper dumping of construction waste occurs, the developer of the portion of the Specific Plan area from which such wastes were taken shall guarantee reimbursement to the City of costs incurred by it associated with clean up, proper disposal, any necessary revegetation and legal penalties and remedies.

24. Construction areas shall be fenced as required by the City to preclude the creation of an attractive nuisance and to limit access to and disturbance of sensitive habitat areas.

25. In conjunction with the submittal of any tentative subdivision map, the applicant shall submit conceptual architectural and landscape architectural plans, as determined appropriate by the Planning Director, which illustrate and further develop the architecture and landscape elements suggested in the Specific Plan. The direction of the site design shall reflect the prevailing rural environment and the site's role as a land use transitional area between urban and rural areas.

ZINC ONINTIONS

26. Construction of the development permitted hereby, including recordation of final subdivision maps, may be conducted progressively in stages, provided adequate vehicular access,

SUNNY -CAL SPECCtFIC PLAN
Conditions of Approval

infrastructure and public services are provided for all dwelling units and non-residential land uses in each stage of development, and further, provided that such phase of development conforms substantially with the intent and purpose of the Specific Plan Master Phasing Program and subsequent amendment as determined by the Planning Director.

27. Prior to the approval of any phase of development and/or approval of a tentative tract map, a focused traffic study shall be prepared for the respective phase of development. The purpose of the traffic study shall be to identify the specific traffic improvements necessary to achieve acceptable levels of service, as set forth in the Beaumont General Plan and Sunny Cal Environmental Impact Report. Identified improvements shall be made in conjunction with the respective development phase;.

PARKS AND RECREATION CONDITIONS

28. Development of the property shall be accompanied by the concurrent phased dedication and improvement of not less than 10.45 acres of fully improved and usable park area. That phased dedication shall be to the City for maintenance by a Community Facilities District or other suitable maintenance entity as determined by the City.

29. Prior to recordation oldie first implementing subdivision map, Applicants shall obtain City (and, if necessary, LAFCO) approval for the formation of a Community Facilities Distaict or other appropriate financing mechanism, as determined by the City, to ensure the perpetual maintenance of dedicated lands for parks and recreational purposes, and for maintenance of other landscaped areas contained within public rights -of -way, or held in fee title by the City of Beaumont.

INFRASTRUCTURE CONDs

30. Drainage and load control :Facilities and improvements shall be provided in accordance with Riverside County Flood Control and Water Conservation District standards. A detailed engineered hydrology study shall be submitted for the approval of the Public Works Director prior to the recordation of any subdivision map.

31. An amendment to CEQA required the preparation of a program to ensure that all mitigation measures are fully and completely implemented. The Environmental Impact Report (FIR) prepared for the Sunny -Cal Specific Plan imposes certain mitigation measures on the project.

Certain conditions of approval for the Sunny -Cal Specific Man constitute self contained reporting/monitoring programs for certain mitigation measures. At the time of approval of subsequent development applications, further environmental reporting/monitoring programs may be established if additional mitigation is determined to be necessary through further

S TN"N?Y-Cr`l X, SPECIFIC PLAN
N
C.,v iditioes of Approval

environmental review. The mitigation monitoring program for the Sunny -Cal Specific Plan EIR is hereby incorporated and performance of the mitigation measures set forth therein is a condition of approval of the Specific Plan.

32. Through Community Facilities District No. 93-1, an assessment district and/or through payment of development impact fees, the Developer shall be responsible for funding the project's fair share infrastructure and facility costs, as will be determined by the City of Beaumont Comprehensive Public Facilities Financing Plan.

33. Right-of-way shall be provided for and dedicated for the ultimate improvement of all roadways within or adjoining the project area in accordance with the City of Beaumont General Plan Circulation Element and the Sunny -Cal Specific Plan.

34. The City shall reserve the authority to determine the ultimate disposition and maintenance responsibility for any on- or of site drainage facilities, water quality basins, and water quality or biological mitigation areas. Such features may, at the City's sole option, be accepted by the City of CFD 93-1 for maintenance, or shall, at the City's direction, be accepted and maintained by a Homeowners' Association or capable third party as approved by the City.

:EXHIBIT E
STA "t M NT OF 8E14E14i'!'S TO AZ CITY
The City will benefit from the high quality development, as well as the functional integrity, economic viability, environmental sensitivity, and positive aesthetic impact of the Project. As a master planned community the Sunny -Cal Specific Plan:
• Provides a high quality transition from facilities remaining on former egg ranch to suburban land uses consistent with rc c t. development in the sumunding area Provides appropriate buffers with the surrounding development through the use of landscaped berms, and placement of large lots along Cherry Valley Boulevard.

Is sensitive to the existing physical and other environmental and planning constraints of the site and surrounding area;
• Provides for the recreation and open space needs for the Project residents and surrounding community by incorporating a neighborhood park, two pocket parks, and a paseo system; Provides for connectivity between residential neighborhood and recreational areas through a network of pedestrian sidewalks paseos, and on- and off-street bicycle trails. • Provides a land use plan that is sensitive to the environment, aesthetically pleasing, and places compatible land uses and facilities in an appropriate location; Establishes a circulation system that contributes to local and regional transportation needs and accommodates transit;
• Provides a system of infrastructure that includes public and private transportation, sewer, water, drainage, solid waste disposal energy, and other essential facilities to serve the needs of Project residents;
• Provide access patterns that minimize traffic conflicts; • Develops community identity through the identification of project design elements such as architecture, landscaping, wails, fencing, signage, and entry treatments; • Provides a comprehensive land use plan that designates the distribution, location, and extent of land uses;
• Provides housing opportunities that respond to market demands and provides a reasonable return on investment.
• Develops a project that promotes the public's health, safety and welfare.

F:x�` .3it E

RECORDING REQUESTED BY
AND WHEN RECORDED, MAIL TO:

City Ventures, LLC
1900 Quail Street
Newport Beach, CA 92660
Attn: R. Mark Buckland
,v4 uo/GS
DOC # 2012-0627129
12/24/2012 10:40 AM Fees: $51.00

Recorded in Official Records
County of Riverside
Larry W. Ward
Assessor, County Clerk & Recorder
**This document was electronically submitted
to the County of Riverside for recording**
Receipted by: TVERBA
(Space Above For Recorder's Use)

ASSIGNMENT AND ASSUMPTION

OF DEVELOPMENT AGREEMENT
THIS ASSIGNMENT AND ASSUMPTION OF DEVELOPMENT AGREEMENT (this "Assignment") is made as of December 21, 2012 ("Effective Date"), by and between Sunny -Cal Egg & Poultry Company, a California corporation ("Assignor"), and CV :Communities, LLC, a Delaware limited liability company ("Assignee").

RECITALS
A. Assignor is the owner of certain real property in Riverside County, California more particularly described on Exhibit "A" attached hereto ("Property").

B. Assignor is an "Owner" under that certain Pre -Annexation and Development Agreement No. 06 -DA -01, entered into to be effective on September 18, 2007, between the City of Beaumont, a municipal corporation organized and existing under the laws of the State of California ("City"), Assignor and Manheim, Manheim & Berman, a California general partnership, recorded on October 18, 2012, as Document No. 2012-0497525, in the Official Records of the County Recorder of Riverside County, California (the "Development Agreement").

C. Assignor is selling the Property to Assignee and Assignor desires to assign to Assignee all of its rights and obligations under the Development Agreement relating to the Property, and Assignee wishes to accept such assignment as more particularly set forth below.

Agreement
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Assignment. Assignor does hereby transfer and assign to Assignee all of its right, title and interest in and to, and obligations under, the Development Agreement (and all documents and instruments relating to or implementing the Development Agreement) with respect to the Property.
2885.docx

RECORDING REQUESTED BY
AND WHEN RECORDED, MAIL TO:

City Ventures, LLC
1900 Quail Street
Newport Beach, CA 92660
Attn: R. Mark Buckland
Ala 2/011/2
(Space Above For Recorder's Use)

ASSIGNMENT AND ASSUMPTION

OF DEVELOPMENT AGREEMENT
THIS ASSIGNMENT AND ASSUMPTION OF DEVELOPMENT AGREEMENT (this "Assignment") is made as of December 21, 2012 ("Effective Date"), by and between Sunny -Cal Egg & Poultry Company, a California corporation ("Assignor"), and CV ,Communities, LLC, a Delaware limited liability company ("Assignee").

RECITALS
A. Assignor is the owner of certain real property in Riverside County, California more particularly described on Exhibit "A" attached hereto ("Property").

B. Assignor is an "Owner" under that certain Pre -Annexation and Development Agreement No. 06 -DA -01, entered into to be effective on September 18, 2007, between the City of Beaumont, a municipal corporation organized and existing under the laws of the State of California ("City"), Assignor and Manheim, Manheim & Berman, a California general partnership, recorded on October 18, 2012, as Document No. 2012-0497525, in the Official Records of the County Recorder of Riverside County, California (the "Development Agreement").

C. Assignor is selling the Property to Assignee and Assignor desires to assign to Assignee all of its rights and obligations under the Development Agreement relating to the Property, and Assignee wishes to accept such assignment as more particularly set forth below.

Agreement
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Assignment. Assignor does hereby transfer and assign to Assignee all of its right, title and interest in and to, and obligations under, the Development Agreement (and all documents and instruments relating to or implementing the Development Agreement) with respect to the Property.
2885.docx
-1-

2. Assumption. Assignee hereby accepts said assignment and agrees to keep, perform and be bound by all the terms, covenants and conditions contained in the Development Agreement (and all documents and instruments relating to or implementing the Development Agreement) relating to the Property on the part of the "Owner" therein, first arising on and after the Effective Date, as though Assignee were the original "Owner" under the Development Agreement.

3. Miscellaneous. This Assignment can only be amended only by an amendment in writing signed by all the parties, and any term herein can be waived only by a written waiver signed by the party against whom such waiver is to be asserted. This Assignment is intended to be the final expression of the parties' agreement and supersedes any and all prior restrictions, promises, representations, warranties, agreements, understandings and undertakings between the parties with respect to the within subject matter. There are no restrictions, promises, representations, warranties, agreements, understandings or undertakings with respect to such subject matter other than those set forth or referred to herein.

IN WITNESS WHEREOF, Assignor and Assignee have duly executed this Assignment as of the Effective Date.
"Assignor"
Sunny -Cal Egg & Poultry Company,
a California corporation
1,W,,uwliik, VT'
Kathi L. Berman, Vice President
Amaxi leode407,
Michael G. Manheim, President
V
By:
"Assignee"
CV Communities, LLC,
a Delaware limited liability company
By:

By:

Maz`k,uckland
Chief Executive Officer
August Belmont, President
1 R.

ACKNOWLEDGMENT BY SECOND OWNER
As the second "Owner" under the Development Agreement, but not the owner and seller of the Property, the undersigned hereby acknowledges and agrees to this Assignment to the extent such agreement is necessary for its effectiveness.

Manheim, Manheim & Berman, a California
general partnership
By:

Title:
a, 6, 1 auLt,1711- Ci71U
2885.docx
-2-

CONSENT TO ASSIGNMENT
City hereby consents to and approves the Assignment, which consent is conditioned on the purchase of the Property by Assignee and shall be effective on the effective date of the Development Agreement.
"City"
The City of Beaumont, a municipal corporation
organized and existing under the laws of the State
of California
By:

Title: &.

SIGNED AND CERTIFIED THAT A COPY OF

THIS DOCUMENT HAS BEEN DELIVERED TO

THE MAYOR AND THE CITY COUNCIL
By:
aAtAl-
City Clerk
2885BC.docx
oN%-/cc'--
-3-

State of California )
County of U \r/A Y w' )
r
On N.cra\A.c-a i , 2011v before me, 1 LIC-C. 0VOAR N1 , Notary Public, personally appeared ____w -k 6CAVVWM' Mi, - P- Aoeictri& , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) ' ubscribed to the within instrument and acknowledged to me that : / i: the executed the same in hi/he r ei authorized capacity(ies), and that by h /11 signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my :, d and official seal.

Signature , L.. 1�i�i �� td iL(Seal)
State of Californiafo
County of 911 Ver9id6
) ss.

MICHELLE BO H A NINON
_ Commission # 1884092 t
Z � `J9 Notary
Z t��'� Public - California
,� Jrange County
My Comm. Expires Mar 26, 2014
On bC6Prn &r /8 , 20 Jj, before me, ��C�Jr i r IJ Adt , Notary Public, personally appeared l,4 ' L. &rtnn/I ,001/ .h'e /6. /44,7,1J, who proved to me on the basis of satisfactory evidence to be the person(s) ose name(s) i.r are .ubscribed to the within instrument and acknowledged to me that f '/ t e executed the same in hi'/li�a'r authorized capacity(ies), and that by h'ilhf their ignature(s) on the instrument the person s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
s
(Seal)
JENNIFER D. NERD
Commission # 1943265
Notary Public - California i
Riverside County
Comm. Expires Aug 2. 2015
S1.03 'Z ;Iv sandx3 •wwo0 Ai
ittuno3 ap$sJanly
eluJollle3 - oggnd AGtEON
99Z£P61L # uolsslwwo0
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2885.docx

CALIFORNIA ALL-PURPOSE

CERTIFICATE OF ACKNOWLEDGMENT
State of California
County of -%f 10fro de
on tzlisizziz,
personally appeared
before me,
04,1Li k S v ski Aka/ / /i C
(Here insert name and title of the officer)
who proved to me on the basis of satisfactory evviidenc to be the person whose name subscribed to the within instrument and acknowledged to me tha� �s�tcftliey executed the same i i authorized capacity(i s)-, and that b i signaturc,;(ejon the instrument the person , or t e entity upon behalf of which the perso,5 acte , executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITH s y hand • official seal.

Signature
Public
(Notary Seal)
•

ADDITIONAL OPTIONAL INFORMATION
�DOCU/MEEN�T
DESCRIPTION nL%Y OF��THE ATTACHED
14' `UEA✓�
itle or descri tion of attached ocum nt)
(Title or description attached documen ontinued)
Number of Pages 7 Document Date 17 -)Z -) AZ
(Additional information)

CAPACITY CLAIMED BY THE SIGNER
❑ Individual (s)
❑ Corporate Officer
(Title)
❑ Partner(s)
❑ Attorney -in -Fact
❑ Trustee(s)
❑ Other

INSTRUCTIONS FOR COMPLETING THIS FORM
Any acknowledgment completed in California must contain verbiage exactly as appears above in the notary section or a separate acknowledgment form must be properly completed and attached to that document. The only exception is if a document is to be recorded outside of Califonria. In such instances, any alternative acknowledgment verbiage as may be printed on such a document so long as the verbiage does not require the notary to do something that is illegal for a notary in California (i.e. certifying the authorized capacity of the signer). Please check the document carefully for proper notarial wording and attach this form if required. • State and County information must be the State and County where the document signer(s) personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s) personally appeared which must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization.
• Indicate the correct singular or plural forms by crossing off incorrect forms (i.e. he/she/they; is /are ) or circling the correct forms. Failure to correctly indicate this information may lead to rejection of document recording. • The notary seal impression must be clear and photographically reproducible.

Impression must not cover text or lines. If seal impression smudges, re -seal if a sufficient area permits, otherwise complete a different acknowledgment form. • Signature of the notary public must match the signature on file with the office of the county clerk.
• Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document. • Indicate title or type of attached document, number of pages and date. • Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary). • Securely attach this document to the signed document
Pa
2008 Version CAPA v12.10.07 800-873-9865 www.NotaryClasses.com P11of1 1

Exhibit "A"
to
Assignment and Assumption of Development Agreement
Description of the Property
That certain real property located in the unincorporated area of the County of Riverside, State of California, more particularly described as follows:

PARCEL ONE:

THE WESTERLY 208.71 FEET OF THE NORTHERLY 1,073.55 FEET OF THE SOUTH HALF OF SECTION 29, TOWNSHIP 2 SOUTH, RANGE 1 WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF.

EXCEPTING THEREFROM THE NORTHERLY 30 FEET IN WOODLAND AVENUE, NOW CHERRY VALLEY BOULEVARD.

ALSO EXCEPTING THAT PORTION CONVEYED TO THE COUNTY OF RIVERSIDE BY DEED RECORDED NOVEMBER 14, 1974 AS INSTRUMENT NO. 146636.

PARCEL TWO:

THAT PORTION OF THE SOUTH HALF OF SECTION 29, TOWNSHIP 2 SOUTH, RANGE 1 WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS:

BEGINNING AT THE NORTHWEST CORNER OF SAID SOUTH HALF OF SECTION 29, SAID POINT BEING ALSO A POINT IN THE CENTER OF WOODLAND AVENUE;
THENCE NORTH 89° 33' 30" EAST ON THE CENTER LINE OF WOODLAND AVENUE, 786.12 FEET, MORE OR LESS, TO A POINT DISTANT SOUTH 89° 33' 30" WEST, 791 FEET, FROM THE NORTHWEST CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED TO J. VINCENT HANNON AND JEREMIAH C.

HANNON BY DEED RECORDED JANUARY 28, 1909 IN BOOK 276, PAGE 324 OF DEEDS, RIVERSIDE COUNTY RECORDS;
THENCE SOUTH 0° 28' 50" WEST AND PARALLEL WITH THE WESTERLY LINE OF SAID PARCEL CONVEYED TO HANNON, 1975 FEET TO A POINT ON

THE NORTHERLY LINE OF THAT CERTAIN PARCEL CONVEYED TO MELVIN F. KLAGUOS AND PAULINE M. KLAGUOS, HUSBAND AND WIFE BY DEED RECORDED AUGUST 4, 1959 AS INSTRUMENT NO. 67500;
2885.docx
A-1

THENCE WESTERLY ON THE NORTHERLY LINE OF SAID PARCEL

CONVEYED TO KLAGUOS TO A POINT IN THE WEST LINE OF SAID SECTION 29;
THENCE NORTH 0° 07' 40" EAST ON THE WEST LINE OF SAID SECTION 29, TO THE POINT OF BEGINNING;
EXCEPTING THEREFROM THE WESTERLY 208.71 FEET OF THE NORTHERLY 1,073.55 FEET; ALSO EXCEPTING THEREFROM THE NORTHERLY 30 FEET IN WOODLAND AVENUE, NOW CHERRY VALLEY BOULEVARD.

ALSO EXCEPTING THAT PORTION CONVEYED TO THE COUNTY OF RIVERSIDE BY DEED RECORDED NOVEMBER 14, 1974 AS INSTRUMENT NO. 146646.

PARCEL TWO A:

THAT PORTION OF THE SOUTHWEST QUARTER OF SECTION 29, TOWNSHIP 2 SOUTH, RANGE 1 WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS:

COMMENCING AT A POINT ON THE NORTHERLY LINE OF SAID
SOUTHWEST QUARTER DISTANT SOUTH 89° 33' 30" WEST, 791 FEET FROM

THE NORTHWEST CORNER OF THAT CERTAIN PARCEL OF LAND
CONVEYED TO J. VINCENT HANNAN BY DEED RECORDED JANUARY 28, 1909 IN BOOK 276, PAGE 324 OF DEEDS, RIVERSIDE COUNTY RECORDS; SAID POINT ALSO BEING DISTANT NORTH 89° 33' 30" EAST 786.12 FEET

FROM THE NORTHWEST CORNER OF THE SOUTHWEST QUARTER OF SAID SECTION;
THENCE SOUTH 0° 28' 50" WEST, PARALLEL WITH THE WEST LINE OF THE PARCEL CONVEYED TO J. VINCENT HANNON 313.5 FEET TO THE TRUE POINT OF BEGINNING;

THENCE EASTERLY ON SAID SOUTHERLY LINE OF THE PARCEL
CONVEYED TO GEORGEOUS GEORGE AND ELIZABETH B. GEORGE, BY DEED FILED FOR RECORD AUGUST 21, 1952 AS INSTRUMENT NO. 35786, IN BOOK 1394 PAGE 352 OFFICIAL RECORDS, 11 FEET;
THENCE SOUTHERLY 1, 221.5 FEET TO A POINT ON THE SOUTHERLY LINE OF THAT CERTAIN PARCEL CONVEYED TO FRANK J. FABIAN AND MARY R.

FABIAN BY DEED RECORDED NOVEMBER 4, 1939 IN BOOK 434, PAGE 587 OF OFFICIAL RECORDS, RIVERSIDE COUNTY RECORDS, 20.5 FEET OF THE SOUTHWEST CORNER OF SAID PARCEL SO CONVEYED TO FRANK J.

FABIAN AND WIFE;
2885.docx
A-2

THENCE WEST ON SAID SOUTH LINE 20.5 FEET;
THENCE NORTH 1,221.5 FEET TO THE POINT OF BEGINNING.

PARCEL TWO C:

THAT PORTION OF THE SOUTHWEST QUARTER OF SECTION 29, TOWNSHIP 2 SOUTH, RANGE 1 WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE NORTH LINE OF SAID SOUTHWEST QUARTER DISTANT SOUTH 89° 33' 30" WEST, 791 FEET FROM THE NORTHWEST CORNER OF THAT CERTAIN PARCEL CONVEYED TO J.

VINCENT HANNON BY DEED RECORDED JANUARY 28, 1909 IN BOOK 276, PAGE 324 OF DEEDS, RIVERSIDE COUNTY RECORDS; SAID POINT ALSO BEING DISTANT NORTH 89° 33' 30" EAST 786.12 FEET FROM THE NORTHWEST CORNER OF SAID SOUTHWEST QUARTER;
THENCE SOUTH 0° 28' 50" WEST, PARALLEL WITH THE WEST LINE OF THE PARCEL CONVEYED TO J. VINCENT HANNON 313.4 FEET;
THENCE NORTH 89° 33' 30" EAST, 30 FEET;
THENCE NORTH 0° 28' 50" EAST, 313.4 FEET, TO THE NORTH LINE OF SAID SOUTHWEST QUARTER;
THENCE SOUTH 89° 33' 30" WEST, 30 FEET TO THE POINT OF BEGINNING; EXCEPTING THEREFROM THE NORTH 30 FEET IN WOODLAND AVENUE, NOW CHERRY VALLEY BOULEVARD.

ALSO EXCEPTING THAT PORTION CONVEYED TO THE COUNTY OF RIVERSIDE BY DEED RECORDED NOVEMBER 14, 1974 AS INSTRUMENT NO. 146646.

PARCEL THREE:

PARCELS 1 TO 5, INCLUSIVE, AND 7, AND LOTS A TO K, INCLUSIVE OF PARCEL MAP NO. 12218, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN PARCEL MAP BOOK 85, PAGE 66 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
2885.docx
A-3

20,000 Sq. Ft. Lots
20,000 Sq. Ft. Lots
(Abutting Cherry Valley Blvd.) (Abutting Cherry Valley Blvd.) Parkway to be half width
PA -5
Landscape Berm

4.08 AC
PA -7
Paseos --
2 19 AC
PA -1
Low Density Residential 3
PA -8
Neighborhood Park

18.09 AC

41.11 AC
138 DU'S

3.4 DU/AC
PA -6
Pocket Park

0.50 AC
T
PA -2
Low Density Residential 1

36.32 AC
157 DU'S

4.3 DU/AC
Drainage Channel
Parkway to be half width
Cherry Valley Blvd
PA -3
Low Density Residential 4

43.44 AC
116 DU'S

2.7 DU/AC
PA -11
Pocket Park

0.37 AC
PA -4
Low Density Residential 2

37.78 AC
149 DU'S

3.9 DU/AC
Brookside Ave
PA -9
Landscape Berm

4.63 AC
PA -10
Paseos

1.69 AC
20,000 Sq. Ft. Lots
(Abutting Cherry Valley Blvd.)
I PA -3
(Panhandle)
LEGEND
Approximate Scale: 1" = 500'
0 250' 500' 1000'
Land Use
Low Density Residential 3 (PA -1)

41.11 138

3.4 8,000 sq. ft.

Low Density Residential 1 (PA -2)

36.32 157

4.3 7,000 sq. ft.

Low Density Residential 4 (PA -3)

43.44 116

2.7 8,500 sq. ft.

Low Density Residential 2 (PA -4)

37.78 149

3.9 7,000 sq. ft.

Landscape Buffer PA -5

4.08 Park PA -6

0.50 Paseos / Trail PA -7

2.19 Neighborhood Park PA -8

18.09 Landscape Buffer PA -9

4.63 Paseos / Trail PA -10

1.69 Park PA -11

0.37 Circulation

9.8 Total
200.00
560

2.8 Acres
Units
Du/Ac
Min. Lot Size
Cartographic Design By: Tracy Barger 1 Planning Department - Inland Empire 1 Plotted: 5/24/2007 10:02:40 AM By: tbarger DWG: P:\31944.00\Dwg\prp,d102-1.dwg Sunny -Cal Specific Plan

www.stantec.com
This map may contain data from Riverside County GIS. Imagery from Photomapper flown 1st quarter, 2005. This map is not intended to replace a survey by a Lic.California Surveyor. Stantec does not certify the accuracy of the data. This map is for reference only and should not be used for constructrion. 22690 Cactus Ave., Suite #300 Moreno Valley, CA 92553 Phone 951.697.8300 Fax 951.653.5308 r✓
yl,+�
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V

BAUME ONTA -C A L I F O R N I
Staff Report
TO: City Council
FROM: Elizabeth Gibbs, City Manager
DATE May 16, 2023
SUBJECT: Set Time, Date and Place for a Special Workshop Description To continue the discussion of the wastewater rate study.

Background and Analysis:

At the direction of City Council at the last wastewater rate study workshop held on April 10, 2023, additional research and forecasting will be presented for further discussion.

Staff is recommending that a continued Wastewater Rate Study Workshop be held on May 30, 2023, at 5:00 p.m.

Fiscal Impact:

The estimated cost to prepare this staff report is $75.

Recommended Action:

Set time, date and place of the continued Wastewater Rate Study Workshop to be May 30, 2023, at 5:00 p.m.

BAUME ONTA -C A L I F O R N I
Staff Report
TO: City Council
FROM: Elizabeth Gibbs, City Manager
DATE May 16, 2023
SUBJECT: Public Hearing and Consideration for the Fourth Amendment of the City's FY22/23-FY26/27 Capital Improvement Plan
Description Approval of Resolution to amend the five-year FY23-27 Capital Improvement Plan (CIP).

Background and Analysis:

On June 21, 2022, City Council, by resolution, adopted the City's 5 -year capital improvement plan (CIP) and approved the FY22/23 CIP budget. The plan identifies the City's planned projects through a determined period of time, as well as the prospective financial sources.

On November 1, 2022, City Council approved the first amendment to the FY23-27 CIP.

The first amendment included the following projects:

Project Number
Project Name
2017-009
Pennsylvania Widening Project
2017-001
Pennsylvania Interchange Project
P-16
Shadow Creek Playground Rehab
P-17
Master Park Plan - Citywide
PS -04
Public Safety Radio System Upgrade
T-16
New Vehicle Communications
PS -02
Police Station Renovations
PS -05
Fire Truck Purchase
P-04
Sports Park Lighting and Field Expansion
R-12
2nd Street Extension
2017-012
Pennsylvania Ave/UPR Grade Separation
R-19
Downtown Street Light Replacement
R-20
City -Wide Monument Program
R-21
6th Street Medians
R-22
Public Works Corp Yard

CD -03
Downtown Revitalization/Grace Bldg/Real Estate
Acquisition
CD -04
Zoning code update and citywide design guidelines
R-23
City -Wide Traffic Analysis
R-18
Mid Year Street Enhancement Program 2022
On February 21, 2023, City Council approved the second amendment to the FY23-27 CIP. The second amendment included the following projects:

Project Number
Project Name
2016-003
Potrero Interchange Phase 1 &2 Project
2019-013
Wastewater Master Plan
2019-018
PLC Upgrade Design
CD -01
Housing Code Updates
CD -05
Climate Action Plan
F-01
City Hall Landscaping and Painting
ISFB-05
Fire Station 66 HVAC
ISFB-06
Police Station HVAC
ISFB-11
VFW Roof
P-01
Stewart Park Splash Park
P-02
Rangel Park Splash Park
P-03
Nicklaus Park Splash Park
P-06
Sports Park Support Building for Leagues
P-07
Nicklaus Park Support Buildings for Leagues
P-08
Nicklaus Park Skate Park
P-11
Rangel Park Ball Field Lights, Electrical & Play
P-12
Playground Shade Covers Phase 2
P-13
Three Rings Ranch Park Improvements
P-16
Shadow Creek Park Playground Rehab
PS -01
New Police Station Feasibility Study
PS -08
PD Restroom Modular
R-03
Annual Slurry Seal 20/21
R-04
Annual Citywide Street Rehab 20/21
R-06
2021 Mid -Year Street Enhancement
R-08
Annual Citywide Street Rehab and Maintenance
21/22
R-09
Annual Citywide Street Rehab and Maintenance
21/22
R-10
Citywide Street Improvements 21/22

R-14
Annual Citywide Street Rehab and Maintenance
22/23
R-15
Annual Citywide Street Rehab and Maintenance
22/23
R-16
Citywide Street Improvements 22/23
R-18
Mid -Year Street Enhancement Program 22/23
R-24
2023 Citywide Street Rehabilitation and Maintenance
On April 18, 2023, City Council approved the third amendment to the FY23-27 CIP. The third amendment included the following projects:

Project Number
Project Name
R-13
Citywide Traffic Signal Upgrade
2017-009
Pennsylvania Avenue Widening
The Fourth Amendment to the FY23-27 CIP (Attachment B) consists of the following change:

PS -05 Fire Truck Purchase — Project amended to include additional funding allocated from the City's General Fund. At the May 2, 2023, City Council meeting, direction was given to staff to bring an item forward to consider amending the 5 -Year FY23-27 Capital Improvement Plan and Amending the FY23 Budget, specifically to discuss increasing the funding for Capital Improvement Project PS -05 in the amount of $690,000 for the purchase of proposed ladder truck.

Budget
Change
New Budget
$1,800,000
$690,000
$2,490,000
Fiscal Impact:

The estimated cost to prepare this staff report is $250.

The additional $690,000 has not been included in the budget. Staff has identified the additional funding in the current FY budget. A separate item to amend the budget will be brought to the City Council this evening.

Recommended Action:

Conduct a Public Hearing, and
Waive the full reading and adopt by title only, "A Resolution of the City Council of the City of Beaumont Amending the Five -Year Capital Improvement Plan for Fiscal Years 2022/2023-2027."
OR
Deny adoption of the proposed Resolution and not increase funding in CIP Project No.

PS -05.

Attachments:

A. Resolution CIP Amendment 4
B. FY2022/2023-2027 Capital Improvement Plan
C. Prior Year CIP Project List
D. Public Notice

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BEAUMONT

AMENDING THE FIVE-YEAR CAPITAL IMPROVEMENT PLAN FOR FISCAL YEARS 2022/2023-2026/2027
WHEREAS, on June 21, 2022, the City Council of the City of Beaumont adopted the City's Five Year Capital Improvement Plan for Fiscal Years 2022/2023 through 2026/2027 ("CIP") at a duly noticed public hearing; and
WHEREAS, on November 1, 2022, the City Council of the City of Beaumont amended (Amendment No. 1) the City's Five Year Capital Improvement Plan for Fiscal Years 2022/2023 through 2026/2027 ("CIP") at a duly noticed public hearing; and WHEREAS, on February 21, 2023, the City Council of the City of Beaumont amended (Amendment No. 2) the City's Five Year Capital Improvement Plan for Fiscal Years 2022/2023 through 2026/2027 ("CIP") at a duly noticed public hearing; and WHEREAS, on April 18, 2023, the City Council of the City of Beaumont amended (Amendment No. 3) the City's Five Year Capital Improvement Plan for Fiscal Years 2022/2023 through 2026/2027 ("CIP") at a duly noticed public hearing; and WHEREAS, these specific revisions are detailed in Exhibit "A" attached hereto; and WHEREAS, pursuant to Government Code, section 66002, the City duly gave public notice of the public hearing of the proposed amendments and revisions to the CIP, a copy of which has been on file with the City Clerk Board at least 10 calendar days prior to the City Council's commencement of such public hearing; and
WHEREAS, the City Council desires to revise and amend the Capital Improvement Plan as set forth herein;

NOW, THEREFORE BE IT RESOLVED BY THE BEAUMONT CITY COUNCIL AS FOLLOWS:

Section 1. The City Council hereby approves and amends the Capital Improvement Plan for Fiscal Years 2022/2023 through 2026/2027, a copy of which is attached hereto as Exhibit "A" and made a part hereof by this reference.

Section 2. The Capital Improvement Plan may be updated by the City Council from time to time pursuant to California Government Code, section 66002, or as otherwise provided by law.

Section 3. This Resolution shall take effect immediately upon its passage and adoption. 1

MOVED, PASSED, and ADOPTED this 16th day of May, 2023, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

By:

Julio Martinez III, Mayor
City of Beaumont
ATTEST:

By:

Nicole Wheelwright
Deputy City Clerk
2

EXHIBIT A
SUMMARY OF 2022/2023 — 2026/2027 CIP BUDGET AMENDMENT
3

Five Year Capital Improvement Plan FY 23-27
Funding Source: TUMF
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
TOTAL —
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Funding Source: Basic Services DIF
Project Name
MI
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
New City Hall
$ 18,000,000
$
18,000,000
TOTAL
$ -
$ -
$ -
$ -
$ -
$ 18,000,000
$
18,000,000
Funding Source: Road & Bridge DIF
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
2nd Street Extension Construction
R-12
$ 1,500,000
$ 1,300,000
$
2,800,000
1st Street Widening Penn to Beaumont Ave Design & Construction $ 1,600,000
$
1,600,000
Pennsylvania Widening
2017-009
$ 1,200,000
$
1,200,000
Pennsylvania Avenue/Ramp Additions
2017-001
$ 2,800,000
$
2,800,000
TOTAL
$ 5,500,000
$ 1,300,000
$ -
$ -
$ -
$ 1,600,000
$
8,400,000
Funding Source: Traffic Signal DIF
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
Citywide Traffic Signal Upgrade & Capacity Improvement Phase 3 R-13
$ 274,400
$
274,400
Citywide Traffic Signal Upgrade & Capacity Improvement Phase 4 $ 150,000
$
150,000
Citywide Traffic Signal Upgrade & Capacity Improvement Phase 5 $ 150,000
$
150,000
Pennsylvania Widening
2017-009
$ 430,000
$
430,000
TOTAL
$ 704,400
$ 150,000
$ 150,000
$ -
$ -
$ -
$
1,004,400
Funding Source: Community Park DIF
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
$ -
TOTAL
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Funding Source: Neighborhood Park DIF
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
$ -
$ -
TOTAL
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Funding Source: Regional Park DIF
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
$ -
$ -
TOTAL
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Funding Source: Recreation Facilities DIF
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27 1 Future Funding
TOTAL

$
$
TOTAL
Funding Source: Fire Station DIF
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
TOTAL
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Funding Source: Police Facilities Mitigation DIF
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
Building C Renovation
PS -06
$ 750,000
$
750,000
New Police Station Design
PS -07
$ 797,372
$
797,372
TOTAL
$ 1,547,372
$ -
$ -
$ -
$ -
$ -
$
1,547,372
Funding Source: Public Safety CFD
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Funding Source: CFD
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
New Police Station Design
PS -07
$ 1,300,000
$ 1,500,000
$
2,800,000
PD Restroom Modular
PS -08
$ 150,000
$
150,000
Shadow Creek Park Playground Rehab
P-16
$ 450,000
$
450,000
Master Park Plan - Citywide
P-17
$ 250,000
$
250,000
TOTAL
i
$ 2,150,000
$ 1,500,000
$ -
$ -
$ -
$ -
$
3,650,000
Funding Source: Measure A
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
Annual Citywide Street Rehabilitation and Maintenance 23/24 $ 616,800
$
616,800
Annual Citywide Street Rehabilitation and Maintenance 24/25 $ 629,200
$
629,200
Annual Citywide Street Rehabilitation and Maintenance 25/26 $ 641,600
$
641,600
Annual Citywide Street Rehabilitation and Maintenance 26/27 $ 654,400
$
654,400
2023 Citywide Street Rehabilitation and Maintenance
R-24
$ 1,641,210
$
1,641,210
TOTAL
$ 1,641,210
$ 616,800
$ 629,200
$ 641,600
$ 654,400
$ -
$
4,183,210
Funding Source: RMRA/SB 1
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
Annual Citywide Street Rehabilitation and Maintenance 23/24 $ 900,840
$
900,840
Annual Citywide Street Rehabilitation and Maintenance 24/25 $ 898,837
$
898,837
Annual Citywide Street Rehabilitation and Maintenance 25/26 $ 908,101
$
908,101
Annual Citywide Street Rehabilitation and Maintenance 26/27 $ 916,000
$
916,000
2023 Citywide Street Rehabilitation and Maintenance
R-24
$ 1,117,898
$
1,117,898
TOTAL
$ 1,117,898
$ 900,840
$ 898,837
$ 908,101
$ 916,000
$ -
$
4,741,676
Funding Source: Grants
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
Pennsylvania Ave/UPRR Grade Separation - Construction
$ 40,000,000
$
40,000,000

California Ave/UPRR Grade Separation - Construction
$ 34,000,000
$
34,000,000
Oak Valley/I-10 Interchange - Construction
$ 65,000,000
$
65,000,000
Public Safety Radio System Upgrade
PS -04
$ 112,000
$
112,000
TOTAL
$ 112,000
$ -
$ -
$ -
$ -
$ 139,000,000
$
139,112,000
Funding Source: Transit Grants
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
Bus Prediction Platform
T-11
$ 260,000
$
260,000
2 -Electric Support Vehicles
T-12
$ 80,000
$
80,000
Shop Truck
T-13
$ 150,000
$
150,000
Microtransit Feasability Analysis
T-14
$ 100,000
$
100,000
2-EZ Rider II Buses
T-15
$ 1,700,000
$
1,700,000
New Vehicle Communications
T-16
$ 57,498
$
57,498
TOTAL
$ 2,347,498
$ -
$ -
$ -
$ -
$ -
$
2,347,498
Funding Source: Pass Zone TIP
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
Potrero lnterchange- Phase 1 & 2
2016-003
$ 1,500,000
$ 3,250,000
$
4,750,000
TOTAL
$ 1,500,000
$ 3,250,000
$ -
$ -
$ -
$ -
$
4,750,000
Funding Source: CDBG Grants
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
2023 Citywide Street Rehabilitation and Maintenance
R-24
$ 503,086
$
503,086
Citywide Street Improvements 23/24 - CDBG
$ 130,000
$
130,000
Citywide Street Improvements 24/25 - CDBG
$ 130,000
$
130,000
Citywide Street Improvements 25/26- CDBG
$ 130,000
$
130,000
Citywide Street Improvements 26/27- CDBG
$ 130,000
$
130,000
TOTAL
$ 503,086
$ 130,000
$ 130,000
$ 130,000
$ 130,000
$ -
$
1,023,086
Funding Source: General Fund
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
Police Station Renovations
PS -02
$ 175,000
$
175,000
Pennsylvania Widening
2017-009
$ 4,000,000
$
4,000,000
Fire Truck Purchase
PS -05
$ 1,090,000
$
1,090,000
Sports Park Field Lighting and Field Expansion
P-04
$ 5,019,884
$
5,019,884
2nd Street Extension Construction
R-12
$ 500,000
$
500,000
Pennsylvania Ave/UPR Grade Seperation
2017-012
$ 1,000,000
$
1,000,000
Downtown Street Light Replacement
R-19
$ 1,000,000
$
1,000,000
City -Wide Monument Program (Street & Parks)
R-20
$ 2,000,000
$
2,000,000
6th Street Medians
R-21
$ 2,000,000
$
2,000,000
Public Works Corp Yard
R-22
$ 1,000,000
$
1,000,000
Downtown Revitalization/Grace Bldg/Real Estate Acquisition CD -03
$ 5,000,000
$
5,000,000
Zoning code update and citywide design guidelines
CD -04
$ 350,000
$
350,000
City -Wide Traffic Analysis
R-23
$ 250,000
$
250,000
Climate Action Plan
CD -05
$ 350,000
$
350,000
2023 Citywide Street Rehabilitation and Maintenance
R-24
$ 3,101,170
$
3,101,170
Sundance Detention Basin Concrete Replacement
$ 700,000
$
700,000
Michigan Ave Storm Drain Culvert Crossing
R-17
$ 30,200
$
30,200
Memorial Park Plaza
P-14
$ 1,750,000
$
1,750,000
Memorial Park Plaza Cameras
P-15
$ 50,000
$
50,000

Public Safety Radio System Upgrade
PS -04
$ 544,005
$ 344,479
$
888,484
3rd St to California Ave Storm Drain
$ 650,000
$
650,000
Pavement Management Study
$ 250,000
$
250,000
Mid Year Street Enhancement Program 2023
$ 925,200
$
925,200
Mid Year Street Enhancement Program 2024
$ 943,800
$
943,800
Mid Year Street Enhancement Program 2025
$ 962,400
$
962,400
Mid Year Street Enhancement Program 2026
$ 981,600
$
981,600
Storm Drain Facilities
$ 1,000,000
$
1,000,000
Storm Drain Master Plan
$ 500,000
$
500,000
Parking Garage Facility - Downtown
$ 10,000,000
$
10,000,000
TOTAL
$ 29,210,259
$ 2,169,679
$ 1,643,800
$ 962,400
$ 981,600
$ 11,500,000
$
46,467,738
Funding Source: Wastewater
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
I&I Rehabilitation Project - Phase 3
$ 200,000
$
200,000
4th Street Manhole Replacement
WW -06
$ 200,000
$
200,000
Oak Valley Lift Station Access Point
WW -07
$ 210,000
$
210,000
Vactor Dump Station
WW -08
$ 450,000
$
450,000
UV Bulb Replacement
$ 50,000
$ 50,000
$ 50,000
$
150,000
RO Module Replacement
$ 300,000
$
300,000
TOTAL
$ 860,000
$ 250,000
$ 50,000
$ 350,000
$ -
$ -
$
1,510,000
Funding Source: Wastewater DIF
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
16" Mesa Force Main Construction
WW -09
$ 2,000,000
$ 100,000
$
2,100,000
Mesa Lift Station Pump Capacity Enhancement Construction WW -10
$ 750,000
$
750,000
Mesa Lift Station - Construction
WW -11
$ 900,000
$ 2,600,000
$
3,500,000
TOTAL
$ 3,650,000
$ 2,700,000
$ -
$ -
$ -
$ -
$
6,350,000
Funding Source: State and Local Fiscal Recovery Funds Program Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
Mesa Lift Station - Construction
WW -11
$ 100,000
$ 2,300,000
$ 2,400,000
TOTAL
$ 100,000
$ 2,300,000
$ -
$ -
$ -
$ -
$ 2,400,000
Funding Source: Internal Service Fund
Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
Grace Roof Remove & Replace
ISFB-10
$ 350,000
$
350,000
VFW Re -Roof
ISFB-11
$ 175,000
$
175,000
$
-
$
-
TOTAL
$ 525,000
$ -
$ -
$ -
$ -
$ -
$
525,000
Funding Source: WW Internal Service Fund -Repair and Replacement Project Name
Project Number
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
Future Funding
TOTAL
Lift Station Spare Pump Program
ISFWW-01
$ 300,000
$
300,000
VFD
ISFWW-02
$ 250,000
$
250,000
$
-
$
-
TOTAL
$ 550,000
$ -
$ -
$ -
$ -
$ -
$
550,000

Streets/ Roads R
Parks P
Public Safety PS
Community Development CD
Transit T
Wastewater WW
Facilities F
Internal Service Fund - Buildings ISFB
Internal Service Fund - Wastewater ISFWW
FY22/23 Total 5 Year CIP Total
$ 52,018,723 $ 246,561,980

City of Beaumont
Prior Year CIP Projects 2016-2022
Project #
Project Name
Budget Allocation
Status
Funding Source
104
CF104 City Hall and BLDG B
$
3,193,345
Construction
Basic Services DIF, SLFRF, ISFB
2016-003
Potrero Interchange- Phase 1 & 2
$
26,674,764
Phase 1 Complete,
Phase 2 Seeking Funds
Grants/ Developer Contributions
2017-001
Pennsylvania Avenue/Ramp Additions
$
3,950,000
In design
Road & Bridge DIF
2017-005
WWTP Exp PH 1 & Advanced R
$
76,334,187
In construction
Bonds, WW DIF, Recycled Water DIF, CFD
2017-006
Brine Pipeline to San Bernardino
$
40,572,639
In construction
Bonds, WW DIF, Recycled Water DIF, CFD
2017-009
Pennsylvania Widening
$
4,018,000
In Design
TUMF, Road & Bridge DIF
2017-012
Pennsylvania Ave/UPR Grade Seperation
$
2,250,000
In Design
Railroad DIF
2017-027
Oak Valley/I-10 Interchange Design
$
7,000,000
Design
TUMF, Grants
2017-028
Potrero Fire Station
$
8,650,000
Design
Fire Station DIF, General Fund, Bonds
2019-004
CNG Station
$
2,830,156
Design
Transit Grants
2019-009
2nd Street Extension Feasibility / Design
$
200,000
Design
Road & Bridge
2019-010
PLC Upgrade Construction
$
700,000
Construction
WW Funds, CFD
2019-012
WQMP & WWTP Permit
$
50,000
In process
WW Funds
2019-019
Beaumont Master Drainage Plan - Line 2 Stage 1
$
5,000,000
Design
Grant
R-01
Oak Valley Pkwy Expansion 110 -Desert Lawn Phase 2
$
600,000
Design
Road & Bridge DIF
R-02
Citywide Traffic Signal Upgrade & Capacity
Improvement Phase 1
$
150,000
Design/Construction
Traffic Signal DIF
R-07
Cherry Channel Drainage Project
$
750,000
Design
General Fund
R-11
Citywide Traffic Signal Upgrade & Capacity Improvemen
$
150,000
Traffic Signal DIF
P-04
Sports Park Field Lighting and Field Expansion
$
1,300,000
Design
Regional Park DIF
P-05
Nicklaus Park Field Lighting and Field Expansion
$
2,849,000
Design
Regional Park DIF, Neighborhood DIF
P-09
Playgrounds & Shade Covers - Phase 1
$
500,000
Design
CFD
P-10
Stewart Park Redevelopment and Skate Park
$
8,024,853
Design
CFD, General Fund, community Park DIF
P-13
Three Rings Ranch Park Improvements
$
192,743
Design
Grant
PS -02
Police Station Renovations
$
250,000
Construction
CFD
PS -03
Fire Station Renovations
$
250,000
Construction
CFD
PS -04
Public Safety Radio System Upgrade
$
841,852
In process
General Fund, Grants, Public Safety CFD
PS -05
Fire Truck Purchase
$
1,400,000
Grant SLFRF
CD -02
Leap Grant - Housing Element Update
$
150,000
In process
Grant
T-01
Electric Shuttle Vehicles
$
272,673
In process
Transit Grants
T-02
Fleet Maintenance and Operations Facility -
Construction
$
1,220,667
Design
Transit Grants
T-03
Bus Stop Rehabilitation & Passenger Amenities
$
179,443
Construction
Transit Grants
T-04
Shop Building Maintenance
$
55,524
Construction
Transit Grants
T-05
Bus Wraps/ Brand Logo Update- Phase 1
$
101,950
In process
Transit Grants
T-06
Shop Tools and Lifts
$
11,974
In process
Transit Grants
T-07
Vehicle Replacements - Phase 1
$
1,400,000
Transit Grants
T-08
Fleet Video Cameras
$
110,000
Transit Grants
T-09
Paratransit Scheduling Software
$
14,000
Transit Grants

T-10
Shop Tools and Lifts
$
60,000
Transit Grants
WW -01
I&I Rehabilitation Project - Phase 1
$
200,000
In process
Wastewater
WW -02
I&I Rehabilitation Project - Phase 2 - Flow Meters
$
200,000
In process
Wastewater
WW -03
Wastewater Rate Study
$
200,000
In process
Wastewater
WW -04
16" Mesa Force Main and Pump Replacement Design
$
450,000
Design
Wastewater DIF
WW -05
Mesa Lift Station - Wet Well Capacity Increase Design
$
400,000
Design
State & Local Fiscal Recovery Funds Program
ISFB-01
City Hall Roofing
$
20,100
Design
ISFB
ISFB-02
City Hall Fire System Upgrades - Remodeled Spaces
$
45,749
Design
ISFB
ISFB-03
City Hall Bathrooms
$
20,249
Design
ISFB
ISFB-04
City Hall HVACs - Gym and Remodeled Spaces
$
35,249
Design
ISFB
ISFB-05
Fire Station 66 - HVAC
$
49,399
ISFB
ISFB-06
Police Station - HVAC
$
157,791
ISFB
ISFB-07
Police Station - Concrete Walkway Trip Hazards
$
25,000
ISFB
204,061,307

NOTICE IS HEREBY G I VEN that the City of Beaumont will conduct a Public Hearing for revisions to the approved Capital Improvement Project Plan for FYs 2023-2027.

On May 16, 2023, at approximately 6:00 p.m. at the City of Beaumont Council meeting, to be held at the City of Beaumont Civic Center, 550 E 6th Street, Beaumont, Ca 92223, the Council will conduct a public hearing to receive testimony and comments from all interested persons. Public comments can be made using the public comment phone line or by written email. Phone-in comments will be accepted by calling the designated public comment phone line (951) 922- 4845 prior to the corresponding item. Public comments shall not exceed three minutes unless otherwise authorized by City Council.

Written comments can be emailed to [email protected] Public comments accepted via email will be read aloud during the corresponding item of the meeting. Comments can be submitted anytime prior to the meeting as well as during the meeting until the end of the corresponding item.

This meeting will be conducted utilizing teleconference communications and will be recorded for live streaming. All City of Beaumont public meetings will be made available via live streaming and made available on the City's official YouTube webpage. Please use the following link during the meeting for live stream access:

BeaumontCa.gov/Livefrdge'356 of 1311
Dated: May 3, 2023
The Press -Enterprise
Published: 5/6/23

BAUME ONTA -c A L I F O R N I
Staff Report
TO: City Council
FROM: Elizabeth Gibbs, City Manager
DATE May 16, 2023
SUBJECT: Formation of Community Facilities District (CFD) No. 2023-1 (Fairway Canyon)
Description Hold a public hearing and approve by resolution the establishment of CFD No. 2023-1, approve a resolution to incur bond indebtedness, adopt a resolution certifying election result, and introduce ordinance authorizing the levy of special taxes.

Background and Analysis:

The developer, Meritage Homes of California, Inc., a California corporation (the "Developer") and D.R. Horton Los Angeles Holding Company, Inc., a California corporation, own property containing 419 proposed residential lots within the City. Such property is located in the northwestern part of the City, west of Tukwet Canyon Parkway, and north of Oak Valley Parkway. The Developer has requested that the City form a community facilities district ("CFD No. 2023-1 ") with two improvement areas therein ("Improvement Area No. 1" and "Improvement Area No. 2" and together, the "Improvement Areas") to encompass such property in accordance with the Mello -Roos Community Facilities Act of 1982, as amended (the "Act"), to finance the costs of certain public improvements, public safety services, and maintenance services through the levy of a special tax. Improvement Area No. 1 is planned to include approximately 132 residential units and Improvement Area No. 2 is planned to include approximately 287 residential units.

In order to finance the CFD facilities and incidental expenses, the City intends to issue bonds secured by special taxes levied in each Improvement Area. The maximum amount of bonded indebtedness proposed for Improvement Area No. 1 is $3.5 million and the maximum amount of bonded indebtedness proposed for Improvement Area No. 2 is $11 million.

The Developer has requested that the boundaries of CFD No. 2023-1 include the area described in Attachment A of the Resolution of Intention to Establish CFD No. 2023-1 adopted by the City Council on April 4, 2023 (the "Resolution of Intention"), and that special taxes be levied within the boundaries of Improvement Area No. 1 and

Improvement Area No. 2 in accordance with the applicable Rate and Method of Apportionment (each an "RMA") described in Attachments C and D to the Resolution of Intention.

The Resolution of Intention called for a public hearing to be held on May 16, 2023. The purpose of the public hearing is for the City Council to formally consider the approval of the formation of CFD No. 2023-1 and the approval of the levy of the special taxes within CFD No. 2023-1. Notice of the public hearing was published in the Press Enterprise and mailed to the property owners in accordance with the Act.

In connection with the public hearing, Spicer Consulting Group has prepared a CFD Public Hearing Report which describes and analyzes the facilities and services to be financed by CFD No. 2023-1 and the estimated costs of such facilities and services.

Following the close of the public hearing, the City Council will be asked to adopt the Resolution of Formation and the Resolution Determining the Necessity to Incur Debt which, together, approve the formation of CFD No. 2023-1 and the Improvement Areas, the levy of the special taxes in each Improvement Area in accordance with the applicable RMA and determines the necessity for CFD No. 2023-1 to issue bonds in an amount not to exceed $3.5 million for Improvement Area No. 1 and $11 million for Improvement Area No. 2. Such resolutions call for an election to submit to the qualified voters within CFD No. 2023-1 ballot measures on the approval of the special taxes, the issuance of the bonds and an appropriations limit for CFD No. 2023-1.

In addition, the Resolution of Formation approves the execution and delivery of the Acquisition, Construct and Funding Agreement with the Developer (the "Funding Agreement") in the form presented to this City Council. The Funding Agreement sets forth the terms, among others, pursuant to which CFD No. 2023-1 will finance improvements to be owned by the City.

On file with the City Clerk is a Certificate of the Registrar of Voters of Riverside County certifying that there are no registered voters residing within the boundaries of CFD No. 2023-1. Accordingly, under the Act, only property owners owning land in CFD No. 2023- 1 are eligible to vote at the election for CFD No. 2023-1 with each owner having one vote for each acre (or portion thereof) that they own within an Improvement Area. The Property Owners have executed consents and waivers of certain election procedures with respect to the election, including certain timing requirements with respect to the election, in accordance with the Act. Accordingly, if the City Council approves the Resolution of Formation and the Resolution Determining the Necessity to Incur Debt, the City Clerk will conduct the election. The City Clerk will announce the election results and the City Council will be asked to adopt the Resolution Certifying the Election Results. Based on upon certification that 2/3rds of the votes cast are in favor of the propositions voted upon in each Improvement Area, the Resolution Certifying the

Election Results directs the City Clerk to record a notice of special tax lien on the property within each Improvement Area. The City Council will then be asked to introduce the Ordinance authorizing the levy of the special tax within each Improvement Area in accordance with the applicable RMA.

Fiscal Impact:

The Developer has made a deposit of $50,000 to pay for the costs of the formation proceedings which may be reimbursed to the Developer in accordance with Funding Agreement. If established and subject to necessary City Council and voter approvals, CFD No. 2023-1 will annually levy special taxes on all of the taxable property within each of Improvement Area No. 1 and Improvement Area No. 2 in accordance with the RMA applicable to such Improvement Areas (as attached to the Resolution of Intention).

Any bonds issued by CFD No. 2023-1 are not obligations of the City and will be secured solely by the Special Taxes levied in the applicable Improvement Area within CFD No. 2023-1. The inclusion of the Special Tax B is estimated to produce $178,075 in annual revenues for public safety at buildout (based on the initial rate of $425/unit). The inclusion of the Special Tax D will produce an estimated $213,271 in annual revenues for Public Services at buildout (based on the initial rate of $509/unit).

Recommended Action:

Adopt, "Resolution of the City Council of the City of Beaumont, California, Establishing City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon) and Improvement Areas Therein, Authorizing the Levy of a Special Tax Therein, Calling an Election Within Each Improvement Area and Approving and Authorizing Certain Actions Related Thereto" and;
Adopt, "Resolution of the City Council of the City of Beaumont, California, Acting as the Legislative Body of City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon) Determining the Necessity to Incur Bonded Indebtedness within Improvement Areas Nos. 1 and 2 of City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon) in an Amount Not to Exceed $3,500,000 Within Improvement Area No. 1 and $11,000,000 Within Improvement Area No. 2 and Calling Elections Therein" and;
Adopt, "Resolution of the City Council of the City of Beaumont, California, Acting in its Capacity as the Legislative Body of City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon) Certifying Election Results" and; Introduce by Title Only, "Ordinance of the City Council of the City of Beaumont, California, Acting in its Capacity as the Legislative Body of City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon) Authorizing the Levy of Special Taxes Within Improvement Area No. 1 and Improvement Area No. 2."

Attachments:

A. Resolution Establishing City of Beaumont CFD No. 2023-1 B. Resolution Determining Necessity to Incur Bond Indebtedness within CFD No. 2023-1
C. Resolution Certifying Election Results
D. Ordinance Authorizing the Levy of Special Tax
E. Acquisition, Construction and Funding Agreement
F. Certificate of the Registrar of Voters
G. Public Hearing Report
H. Project Map

RESOLUTION NO. 23 -

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BEAUMONT,

CALIFORNIA, ESTABLISHING CITY OF BEAUMONT COMMUNITY
FACILITIES NO. 2023-1 (FAIRWAY CANYON) AND IMPROVEMENT

AREAS THEREIN, AUTHORIZING THE LEVY OF A SPECIAL TAX

THEREIN, CALLING AN ELECTION WITHIN EACH IMPROVEMENT

AREA AND APPROVING AND AUTHORIZING CERTAIN ACTIONS

RELATED THERETO
WHEREAS, the City Council (the "City Council") of the City of Beaumont (the "City") has heretofore adopted Resolution No. 2023-06 stating its intention to form City of Beaumont Community Facilities No. 2023-1 (Fairway Canyon) ("Community Facilities District No. 2023-1" or the "District") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the "Act") and to form two improvement areas within proposed Community Facilities District No. 2023 -1 to be known as "Improvement Area No. 1 of City of Beaumont Community Facilities No. 2023-1 (Fairway Canyon) ("Improvement Area No. 1") and "Improvement Area No. 2 of City of Beaumont Community Facilities No. 2023-1 (Fairway Canyon)" ("Improvement Area No. 2" and together with Improvement Area No. 1, the "Improvement Areas" and each individually an "Improvement Area"); and WHEREAS, a copy of Resolution No 2023-06 setting forth a description of the proposed boundaries of Community Facilities District No. 2023-1 and each of the Improvement Areas, the facilities, services and incidental expenses to be financed by the District and the rate and method of apportionment of the special tax proposed to be levied within each Improvement Area is on file with the City Clerk; and
WHEREAS, notice was published and mailed to all landowners of the land proposed to be included within the District as required by law relative to the intention of this City Council to form proposed Community Facilities District No. 2023-1 and the Improvement Areas and to levy special taxes within each Improvement Area and to incur bonded indebtedness in the maximum aggregate amount of up to $3,500,000 within proposed Improvement Area No. 1 and $11,000,000 within proposed Improvement Area No. 2 therein to finance the facilities, services and incidental expenses described in Resolution No. 2023-06; and
WHEREAS, on May 16, 2023, this City Council conducted a noticed public hearing as required by law relative to the proposed formation of Community Facilities District No. 2023-1 and the Improvement Areas, the levy of the special taxes within each Improvement Area and the issuance of bonded indebtedness by the District for each Improvement Area; and WHEREAS, at the May 16, 2023 public hearing there was filed with this City Council a report containing a description of the facilities and services necessary to meet the needs of the District and an estimate of the cost of such facilities and services as required by Section 53321.5 of the Act (the "Engineer's Report"); and
WHEREAS, at the May 16, 2023 public hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2023-1 and the Improvement Areas, the levy of the special taxes within each Improvement Area and the issuance of bonded indebtedness by the District for each of the Improvement Areas were heard and full and fair hearings were held; and 4862-5930-2240v1/022599-0032

WHEREAS, following the public hearing, this City Council has determined to authorize the formation of the District to finance the types of facilities (the "Facilities") and the types of services (the "Services") and the incidental expenses (the "Incidental Expenses") set forth in Attachment A hereto, which are described in more detail in the Engineer's Report; and WHEREAS, at the public hearing evidence was presented to this City Council on the matters before it, and the proposed special taxes to be levied within each of the Improvement Areas was not precluded by a majority protest of the type described in Section 53324 of the Act, and this City Council at the conclusion of the hearing was fully advised as to all matters relating to the formation of the District and the Improvement Areas, the levy of the special taxes and the issuance of bonded indebtedness within each of the Improvement Areas; and
WHEREAS, this City Council has determined, based on a Certificate of Registrar of Voters of the County of Riverside on file in the office of the City Clerk, that no registered voters have been residing in the proposed boundaries of Community Facilities District No. 2023-1 for each of the 90 days prior to May 16, 2023 and that the qualified electors in Community Facilities District No. 2023 - 1 are the landowners within the District; and
WHEREAS, on the basis of all of the foregoing, this City Council has determined to proceed with the establishment of Community Facilities District No. 2023-1 and the Improvement Areas and to call an election within each Improvement Area to authorize (i) the levy of special taxes within Improvement Area No. 1 pursuant to the rate and method of apportionment of the special tax, as set forth in Attachment C to Resolution No. 2023-06 (the "Improvement Area No. 1 Rate and Method"), (ii) the levy of special taxes within Improvement Area No. 2 pursuant to the rate and method of apportionment of the special tax, as set forth in Attachment D to Resolution No. 2023 -06 (the "Improvement Area No. 2 Rate and Method") (iii) the issuance of bonds within each of the Improvement Areas to finance the Facilities and Incidental Expenses, and (iv) the establishment of an appropriations limit for Community Facilities District No. 2023-1; and WHEREAS, in order to facilitate the funding of the Facilities, the legislative body of the District desires to enter into an Acquisition, Construction and Funding Agreement (the "Agreement") with Meritage Homes of California, Inc., a California corporation (the "Developer") and the form of the Agreement is on file with the City Clerk; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Beaumont, California:

SECTION 1. Each of the above recitals is true and correct.

SECTION 2. A community facilities district to be designated "City of Beaumont Community Facilities No. 2023-1 (Fairway Canyon)" is hereby established pursuant to the Act and Improvement Area No. 1 and Improvement Area No. 2 are hereby designated within the District in accordance with 53350 of the Act. The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the District were valid and in conformity with the requirements of law, including the Act. This finding is made in accordance with the provisions of Section 53325.1(b) of the Act.
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SECTION 3. The boundaries of Community Facilities District No. 2023-1 and each of the Improvement Areas are established as shown on the map designated "Proposed Boundary Map of City of Beaumont Community Facilities No. 2023-1 (Fairway Canyon), County of Riverside, State of California", which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County Book of Maps of Assessment and Community Facilities Districts in the Assessor -County Clerk -Recorder's office of the County of Riverside in Book No. 90 Page No. 98 on April 16, 2023 as Instrument No. 2023-0099016.

SECTION 4. The types of Facilities, Services and Incidental Expenses authorized to be provided for Community Facilities District No. 2023-1 are those set forth in Attachment A attached hereto. The estimated cost of the Facilities, Services and Incidental Expenses to be financed is set forth in the Engineer's Report, which estimates may change as the Facilities are designed and bid for construction and acquisition, as applicable.

The City is authorized by the Act to contribute revenue to, or to construct or acquire the Facilities, all in accordance with the Act. The City Council finds and determines that the proposed Facilities and Services are necessary to meet the increased demand that will be placed upon local agencies and public infrastructure as a result of new development within the District and that the Facilities and Services to be financed, benefit residents of the City and the future residents of the District.

SECTION 5. Except where funds are otherwise available, it is the intention of this City Council, subject to the approval of the eligible voters within each Improvement Area, to levy annually special taxes at the rates set forth in the Improvement Area No. 1 Rate and Method and the Improvement Area No. 2 Rate and Method, on all non-exempt property within Improvement Area No. 1 and Improvement Area No. 2, respectively, sufficient to pay for (i) the Facilities and the Services, (ii) principal and interest and other periodic costs on the bonds proposed to be issued to finance the Facilities and Incidental Expenses to be financed by such Improvement Area, including the establishment and replenishment of reserve funds, any remarketing, credit enhancement and liquidity facility fees and other expenses of the type permitted by Section 53345.3 of the Act, and (iii) the Incidental Expenses. The District expects to incur, and in certain cases has already incurred, Incidental Expenses in connection with the creation of the District, the issuance of bonds, the levying and collecting of the special taxes, the completion and inspection of the Facilities and the annual administration of the bonds and the District. The Improvement Area No. 1 Rate and Method is described in detail in Attachment C to Resolution No. 2023-06 and is incorporated herein by this reference, and the City Council hereby finds that the Improvement Area No. 1 Rate and Method contains sufficient detail to allow each landowner within Improvement Area No. 1 to estimate the maximum amount that may be levied against each parcel. The Improvement Area No. 2 Rate and Method is described in detail in Attachment D to Resolution No. 2023-06 and is incorporated herein by this reference, and the City Council hereby finds that the Improvement Area No. 2 Rate and Method contains sufficient detail to allow each landowner within Improvement Area No. 2 to estimate the maximum amount that may be levied against each parcel. As described in greater detail in the Engineer's Report, which is incorporated by reference herein, the special taxes to be levied within an Improvement Area is based on the expected demand that each parcel of real property within the Improvement Area will place on the Facilities and the Services and on the benefit that each parcel will derive from the right to access the Facilities and the Services and, accordingly, is hereby determined to be reasonable. The special taxes within the Improvement Areas shall be levied on each assessor's parcel in accordance with the Improvement Area No. 1 Rate and Method and the Improvement Area 3 4862-5930-2240v1/022599-0032

No. 2 Rate and Method, as applicable. The special taxes are apportioned to each parcel within an Improvement Area on the foregoing bases pursuant to Section 53325.3 of the Act and such special taxes are not on or based upon the ownership of real property or the assessed value of real property.

If special taxes of an Improvement Area are levied against any parcel used for private residential purposes, (i) the maximum special tax rate shall be specified as a dollar amount which shall be calculated and established not later than the date on which the parcel is first subject to the special tax because of its use for private residential purposes and shall not be increased over time, except to the extent permitted in the rate and method of apportionment of the special tax for such Improvement Area as set forth in the Improvement Area No. 1 Rate and Method or the Improvement Area No. 2 Rate and Method, as applicable, (ii) the Special Tax A (as defined in the Improvement Area No. 1 Rate and Method or the Improvement Area No. 2 Rate and Method) shall not be levied after fiscal year 2063- 64, as described in the Improvement Area No. 1 Rate and Method or the Improvement Area No. 2 Rate and Method, as applicable, (iii) the Special Tax B, the Special Tax C (Contingent), and the Special Tax D (each as defined in the Improvement Area No. 1 Rate and Method or the Improvement Area No. 2 Rate and Method) shall be levied as long as each is needed to meet the Special Tax B Requirement, the Special Tax C (Contingent) Requirement and the Special Tax D Requirement (each as defined in the Improvement Area No. 1 Rate and Method or the Improvement Area No. 2 Rate and Method), respectively, as determined at the sole discretion of the City Council and (iv) under no circumstances will the special tax levied in an Improvement Area in any fiscal year against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within an 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 City Manager of the City of Beaumont, or his or her designee, will be responsible for preparing annually, or authorizing a designee to prepare, a current roll of special tax levy obligations by assessor's parcel number and will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Act.

SECTION 6. In the event that a portion of the property within Improvement Area No. 1 shall become for any reason exempt, wholly or partially, from the levy of the special taxes specified in the Improvement Area No. 1 Rate and Method, or in the event of delinquencies in the payment of the applicable special tax levied, the City Council shall, on behalf of Community Facilities District No. 2023-1, increase the levy to the extent necessary and permitted by law and these proceedings upon the remaining property within Improvement Area No. 1 which is not exempt or delinquent in order to yield the required debt service payments on any outstanding bonds of the District for Improvement Area No. 1, or to prevent the District from defaulting on any other of its obligations or liabilities payable from Improvement Area No. 1 special taxes; provided, however, under no circumstances will any special tax levied against any parcel in Improvement Area No. 1 used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within Improvement Area No. 1 by more than ten percent above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. The amount of the special tax for parcels within Improvement Area No. 1 will be set in accordance with the Improvement Area No. 1 Rate and Method. The obligation to pay the Special Tax A may be prepaid only as set forth in Sections G and H of the Improvement Area No. 1 Rate and Method. The obligation to pay the Special Tax B, the Special Tax C (Contingent), and the Special Tax D may not be prepaid. 4 4862-5930-2240v1/022599-0032

In the event that a portion of the property within Improvement Area No. 2 shall become for any reason exempt, wholly or partially, from the levy of the special taxes specified in the Improvement Area No. 2 Rate and Method, or in the event of delinquencies in the payment of the applicable special tax levied, the City Council shall, on behalf of Community Facilities District No. 2023-1, increase the levy to the extent necessary and permitted by law and these proceedings upon the remaining property within Improvement Area No. 2 which is not exempt or delinquent in order to yield the required debt service payments on any outstanding bonds of the District for Improvement Area No. 2, or to prevent the District from defaulting on any other of its obligations or liabilities payable from Improvement Area No. 2 special taxes; provided, however, under no circumstances will any special tax levied against any parcel in Improvement Area No. 2 used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within Improvement Area No. 2 by more than ten percent above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. The amount of the special tax for parcels within Improvement Area No. 2 will be set in accordance with the Improvement Area No. 2 Rate and Method. The obligation to pay the Special Tax A may be prepaid only as set forth in Sections G and H of the Improvement Area No. 2 Rate and Method. The obligation to pay the Special Tax B, the Special Tax C (Contingent), and the Special Tax D may not be prepaid.

SECTION 7. Upon recordation of a notice of special tax lien for an Improvement Area pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the special taxes shall attach to all non-exempt real property in such Improvement Area and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled with respect to such Improvement Area in accordance with law or until collection of the special taxes for such Improvement Area by the District ceases.

SECTION 8. Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within Community Facilities District No. 2023-1, if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within Community Facilities District No. 2023- 1 and will be benefited by the Facilities proposed to be provided within Community Facilities District No. 2023-1.

SECTION 9. It is hereby further determined that there is no ad valorem property tax currently being levied on property within proposed Community Facilities District No. 2023-1 for the exclusive purpose of paying the principal of or interest on bonds or other indebtedness incurred to finance the construction of capital facilities which provide the same services to the territory of Community Facilities District No. 2023-1 as are proposed to be provided by the Facilities to be financed by Community Facilities District No. 2023-1.

SECTION 10. Written protests against the establishment of the District and the designation of the Improvement Areas have not been filed by one-half or more of the registered voters within the boundaries of the District or either Improvement Area or by the property owners of one-half (1/2) or more of the area of land within the District or either Improvement Area. The City Council hereby finds that the proposed special taxes have not been precluded by a majority protest pursuant to Section 53324 of the Act.

SECTION 11. An election is hereby called for Improvement Area No. 1 on the propositions of levying the special taxes on the property within Improvement Area No. 1 and establishing an appropriations limit for the District pursuant to Section 53325.7 of the Act and shall be consolidated 5 4862-5930-2240v1/022599-0032

with the election on the proposition of incurring bonded indebtedness for Improvement Area No. 1, pursuant to Sections 53351 and 53353.5 of the Act. The language of the propositions to be placed on the ballot is attached hereto as Attachment B.

An election is hereby called for Improvement Area No. 2 on the propositions of levying the special taxes on the property within Improvement Area No. 2 and establishing an appropriations limit for the District pursuant to Section 53325.7 of the Act and shall be consolidated with the election on the proposition of incurring bonded indebtedness for Improvement Area No. 2. Pursuant to Section 53351 and 53353.5 of the Act. The language of the propositions to be placed on the ballot is attached hereto as Attachment C.

SECTION 12. The date of the elections for each of the Improvement Areas on the propositions of incurring the bonded indebtedness, authorizing the levy of the special taxes and establishing an appropriations limit for the District shall be May 16, 2023, or such later date as is consented to by the City Clerk or any Acting City Clerk (referred to herein as the "City Clerk") of the City of Beaumont; provided that, if the election is to take place sooner than 90 days after May 16, 2023, then the unanimous written consent of each qualified elector within such Improvement Area to such election date must be obtained. The polls shall be open for said election immediately following the close of the public hearing on May 16, 2023. The election shall be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Beaumont insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of this resolution, and all ballots shall be received by, and the City Clerk shall close the election by, 11:00 p.m. on the election day; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act. Pursuant to Section 53326 of the Act, the ballots for the special election shall be distributed in person or by mail with return postage prepaid, to the qualified electors within each of the Improvement Areas. The City Clerk has secured a certificate from the Registrar of Voters of the County of Riverside certifying that there were no registered voters within the District as of the date of such certificate. Accordingly, since there were fewer than 12 registered voters within the District for each of the 90 days preceding May 16, 2023, the qualified electors shall be the landowners within each of the Improvement Areas and each landowner, or the authorized representative thereof, shall have one vote for each acre or portion thereof that such landowner owns within the respective Improvement Area, as provided in Section 53326 of the Act.

The sole landowner within Improvement Area No. 1 has executed and delivered a waiver of certain election law requirements and consenting to the holding of the election on May 16, 2023, which waiver is on file with the City Clerk. The sole landowner within Improvement Area No. 2 has executed and delivered a waiver of certain election law requirements and consenting to the holding of the election on May 16, 2023, which waiver is on file with the City Clerk.

SECTION 13. The preparation of the Engineer's Report is hereby ratified. The Engineer's Report, as submitted, is hereby approved and was made a part of the record of the public hearing regarding the formation of Community Facilities District No. 2023-1. The Engineer's Report is ordered to be kept on file with the transcript of these proceedings and open for public inspection.

SECTION 14. 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 in creating Community Facilities District No. 2023-1. The District may enter into an agreement with the person or entity advancing the funds or work -in -kind, to 6 4862-5930-2240v1/022599-0032

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 City Council, with or without interest.

SECTION 15. The form of the Agreement on file with the City Clerk is approved as to form, and each of the City Manager and their written designees, is authorized to execute the Agreement in substantially the form on file with the City Clerk, together with such changes as are approved by the officer executing the same, with the approval of such changes to be conclusively evidenced by the execution and delivery thereof.

SECTION 16. This Resolution shall be effective upon its adoption.

ADOPTED, SIGNED AND APPROVED this 16th day of May, 2023.

Julio Martinez III, Mayor of the City of Beaumont
(SEAL)
ATTEST:

Elaine Morgan, City Clerk
of the City of Beaumont
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STATE OF CALIFORNIA )
) ss.

COUNTY OF RIVERSIDE )
I, Elaine Morgan, City Clerk of the City of Beaumont, do hereby certify that the foregoing resolution was duly adopted by the City Council of said City, at a regular meeting of said City Council held on the l 6"' day of May, 2023, and that it was so adopted by the following vote:

AYES:

NOES:

ABSENT:

Elaine Morgan, City Clerk
City of Beaumont
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ATTACHMENT A

DESCRIPTION OF THE FACILITIES, SERVICES AND INCIDENTAL EXPENSES

TYPES OF FACILITIES
The proposed types of public facilities and expenses to be financed by the Community Facilities District include:

The construction, purchase, modification, rehabilitation, expansion and/or improvement of roadway, bridge, sewer, domestic and reclaimed water, dry utilities, storm drain, curb and gutter, medians, traffic signals and any other facilities permitted pursuant to the Act, parks, trails, police facilities, fire facilities, library facilities, public community facilities, and appurtenances and appurtenant work, and development impact fees that are used by the City to construct infrastructure including design, engineering and planning costs associated therewith. The Facilities include, but are not limited to:

PA 21B Park Improvements
Sorenstam Road Improvement
Water Facilities of Beaumont Cherry Valley Water District

TYPES OF MAINTENANCE SERVICES
The types of Maintenance Services that are proposed to be provided by the Community Facilities District and funded with the proceeds of special taxes levied by the Community Facilities District consist of services permitted to be financed under the Act including, without limitation, street sweeping, traffic signal maintenance, the maintenance of landscaping and lighting of publicly owned parks, parkways, streets, roads and open spaces, flood and storm protection services, and the operation of storm drainage systems. All of the Maintenance Services to be financed must be in addition to those provided within the boundaries of the Community Facilities District before the Community Facilities District is created, and shall not supplant services already available within that territory when the Community Facilities District is created.

TYPES OF PUBLIC SERVICES
The types of Public Services that are proposed to be provided by the Community Facilities District and funded with the proceeds of special taxes levied by the Community Facilities District consist of services permitted to be financed under the Act, including, without limitation, police and fire protection and ambulance and paramedic services. All of the Public Services to be financed must be in addition to those provided within the boundaries of the Community Facilities District before The Community Facilities District is created, and shall not supplant services already available within that territory when the Community Facilities District is created.

TYPES OF INCIDENTAL EXPENSES
The Incidental Expenses to be paid from bond proceeds and/or special taxes include:
a. The cost of engineering, planning and designing the Facilities; A-1
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b. All costs, including costs of the property owner petitioning to form the Community Facilities District, associated with the creation of the Community Facilities 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 Community Facilities District; and c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.

A-2
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ATTACHMENT B

BALLOT PROPOSITIONS

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2023-1 (FAIRWAY CANYON) IMPROVEMENT AREA NO. 1

SPECIAL TAX AND SPECIAL BOND ELECTION
May 16, 2023
PROPOSITION A: Shall City of Beaumont Community
Facilities No. 2023-1 (Fairway Canyon) (the "District") incur an indebtedness and issue bonds in the maximum principal amount of $3,500,000 for Improvement Area No. 1 therein (the "Improvement Area") with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 2023-06 of the City Council of the City of Beaumont?
PROPOSITION B: Shall special taxes with a rate and
method of apportionment for the Improvement Area as
provided in Resolution No. 2023-06 of the City Council of the City of Beaumont be levied to pay for the Facilities, Services and Incidental Expenses and other purposes
described in Resolution No. 2023-06, including the payment of the principal of and interest on bonds issued by the District for the Improvement Area to finance the Facilities and
Incidental Expenses?
YES
NO
YES
NO
PROPOSITION C: For each year commencing with Fiscal
Year 2023-2024, shall the appropriations limit, as defined by YES subdivision (h) of Section 8 of Article XIII B of the
California Constitution, for the District be an amount equal NO to $5,000,000?
B-1
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ATTACHMENT C

BALLOT PROPOSITIONS

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2023-1 (FAIRWAY CANYON) IMPROVEMENT AREA NO. 2

SPECIAL TAX AND SPECIAL BOND ELECTION
May 16, 2023
PROPOSITION D: Shall City of Beaumont Community
Facilities No. 2023-1 (Fairway Canyon) (the "District") incur an indebtedness and issue bonds in the maximum principal amount of $11,000,000 for Improvement Area No. 2 therein (the "Improvement Area") with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 2023-06 of the City Council of the City of Beaumont?
PROPOSITION E: Shall special taxes with a rate and
method of apportionment for the Improvement Area as
provided in Resolution No. 2023-06 of the City Council of the City of Beaumont be levied to pay for the Facilities, Services and Incidental Expenses and other purposes
described in Resolution No. 2023-06, including the payment of the principal of and interest on bonds issued by the District for the Improvement Area to finance the Facilities and
Incidental Expenses?
YES
NO
YES
NO
PROPOSITION F: For each year commencing with Fiscal
Year 2023-2024, shall the appropriations limit, as defined by YES subdivision (h) of Section 8 of Article XIII B of the
California Constitution, for the District be an amount equal NO to $5,000,000?
C-1
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RESOLUTION NO. 23 -

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BEAUMONT,

CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF CITY OF
BEAUMONT COMMUNITY FACILITIES DISTRICT NO. 2023-1 (FAIRWAY

CANYON) DETERMINING THE NECESSITY TO INCUR BONDED
INDEBTEDNESS WITHIN IMPROVEMENT AREA NOS. 1 AND 2 OF CITY OF BEAUMONT COMMUNITY FACILITIES DISTRICT NO. 2023-1
(FAIRWAY CANYON) IN AN AMOUNT NOT TO EXCEED $3,500,000
WITHIN IMPROVEMENT AREA NO. 1 AND $11,000,000 WITHIN
IMPROVEMENT AREA NO. 2, AND CALLING ELECTIONS THEREIN
WHEREAS, on April 4, 2023, the City Council of the City of Beaumont (the "City Council") adopted Resolution No. 2023-06 stating its intention to form City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon) ("Community Facilities District No. 2023-1" or the "District") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (the "Act") and to form two improvement areas within proposed Community Facilities District No. 2023-1 to be known as "Improvement Area No. 1 of City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon)" ("Improvement Area No. 1") and "Improvement Area No. 2 of City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon)" ("Improvement Area No. 2" and together with Improvement Area No. 1, the "Improvement Areas" and each individually an "Improvement Area"); and
WHEREAS, on April 4, 2023, the City Council also adopted Resolution No. 2023-07 stating its intention to incur bonded indebtedness in the amount of up to $3,500,000 within proposed Improvement Area No. 1 and $11,000,000 within proposed Improvement Area No. 2 to finance (1) the purchase, construction, modification, expansion, improvement and/or rehabilitation of public facilities identified in Attachment B to Resolution No. 2023-06, and (2) the incidental expenses to be incurred in financing such public facilities and services and forming and administering the District, as identified in Attachment B to Resolution No. 2023-06; and WHEREAS, notice was published as required by law relative to the intention of the City Council to form proposed Community Facilities District No. 2023-1, to designate the Improvement Areas and to incur bonded indebtedness in the amount of up to $3,500,000 within the boundaries of proposed Improvement Area No. 1 and $11,000,000 within the boundaries of proposed Improvement Area No. 2; and
WHEREAS, on May 16, 2023, this City Council conducted a noticed public hearing to determine whether it should proceed with the formation of Community Facilities District No. 2023-1 and the designation of the Improvement Areas, issue bonds within the Improvement Areas to pay for the facilities and incidental expenses described in Resolution No. 2023-06 and authorize a rate and method of apportionment of a special tax for each of the Improvement Areas to be levied within such Improvement Areas for the purposes described in Resolution No. 2023-06; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2023-1, the designation of the Improvement Areas, the levy of a special tax and the issuance of bonds with respect to each Improvement Area to pay for the cost of the proposed facilities and incidental expenses were heard and a full and fair hearing was held; and
4861-3262-4734v3/022599-0032

WHEREAS, the City Council subsequent to such hearing adopted Resolution No. 23 - establishing Community Facilities District No. 2023-1 (the "Resolution of Formation"), designating the Improvement Areas and authorizing the financing of the public facilities (the "Facilities") and the incidental expenses (the "Incidental Expenses") described in Attachment A thereto; and WHEREAS, the City Council desires to make the necessary findings to incur bonded indebtedness within each of the Improvement Areas, to declare the purpose for said debt, and to authorize the submittal of a proposition to issue bonded indebtedness to the voters of each of the Improvement Areas, being the landowners therein, all as authorized and required by law; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Beaumont, California:

SECTION 1. It is necessary to incur bonded indebtedness in one or more series in a maximum aggregate principal amount not to exceed $3,500,000 within Improvement Area No. 1 and $11,000,000 within Improvement Area No. 2.

SECTION 2. The indebtedness is to be incurred for the purpose of financing the costs of purchasing, constructing, modifying, expanding, improving, and/or rehabilitating the Facilities and financing the Incidental Expenses, as described in the Resolution of Formation, and carrying out the powers and purposes of Community Facilities District No. 2023-1, including, but not limited to, financing the costs of selling the bonds, establishing and replenishing bond reserve funds and paying remarketing, credit enhancement and liquidity facility fees and other expenses of the type authorized by Section 53345.3 of the Act.

SECTION 3. The whole of the property within Improvement Area No. 1, other than property exempted from the special tax pursuant to the provisions of the rate and method of apportionment attached to Resolution No. 2023-06 as Attachment C, shall pay for the bonded indebtedness issued by the District for Improvement Area No. 1 pursuant to the levy of the special tax for Improvement Area No. 1 authorized by the Resolution of Formation.

The whole of the property within Improvement Area No. 2, other than property exempted from the special tax pursuant to the provisions of the rate and method of apportionment attached to Resolution No. 2023-06 as Attachment D, shall pay for the bonded indebtedness issued by the District for Improvement Area No. 2 pursuant to the levy of the special tax for Improvement Area No. 2 authorized by the Resolution of Formation.

SECTION 4. The maximum term of any series of bonds to be issued to finance Facilities shall in no event exceed thirty-five (35) years from the date of issuance of the bonds, or such longer term as is then permitted by law.

SECTION 5. The bonds shall bear interest at the rate or rates not to exceed the maximum interest rate permitted by law, payable annually or semiannually, or in part annually and in part semiannually, except the first interest payment may be for a period of less than six months, with the actual rate or rates and times of payment to be determined at the time or times of sale thereof.

SECTION 6. The bonds may bear a variable or fixed interest rate, provided that such variable rate or fixed rate shall not exceed the maximum rate permitted by Section 53531 of the Act, or any other applicable provision of law limiting the maximum interest rate on the bonds. 2 4861-3262-4734v3/022599-0032

SECTION 7. Pursuant to Section 53351 of the Act, a special election is hereby called for Improvement Area No. 1 on the proposition of incurring the bonded indebtedness. The proposition relative to incurring bonded indebtedness in the maximum aggregate principal amount of $3,500,000 shall be in the form of Proposition A set forth in Attachment A hereto. In accordance with Sections 53351(h) and 53353.5 of the Act, the election shall be consolidated with the special election called on the proposition of levying special taxes within Improvement Area No. 1 as described in the Resolution of Formation, which proposition shall be in the form of Proposition B set forth in Attachment A, and on the proposition of establishing an appropriations limit for the District, which proposition shall be in the form of Proposition C set forth in Attachment A.

Pursuant to Section 53351 of the Act, a special election is hereby called for Improvement Area No. 2 on the proposition of incurring the bonded indebtedness therein. The proposition relative to incurring bonded indebtedness in the maximum aggregate principal amount of $11,000,000 shall be in the form of Proposition D set forth in Attachment B hereto. In accordance with Section 53351(h) and 53353.5 of the Act, the election shall be consolidated with the special election called on the proposition of levying special taxes within Improvement Area No. 2 as described in the Resolution of Formation, which proposition shall be in the form of Proposition E set forth in Attachment B, and on the proposition of establishing an appropriations limit for the District, which proposition shall be in the form of Proposition F set forth in Attachment B.

SECTION 8. The date of the special elections for the Improvement Areas on the propositions of incurring the bonded indebtedness, authorizing the levy of the special tax and setting an appropriations limit shall be May 16, 2023, or such later date as is consented to by the City Clerk, or any Acting City Clerk of the City (referred to herein as the "City Clerk"); provided that, if the election for an Improvement Area is to take place sooner than 90 days after May 16, 2023, then the unanimous written consent of each qualified elector within such Improvement Area to such election date must be obtained. The polls shall be open for said election immediately following the public hearing on May 16, 2023. The election shall be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Beaumont insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of the Resolution of Formation, and this resolution and all ballots shall be received by and the City Clerk shall close the election by 11:00 p.m. on the election day; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act.

Pursuant to Section 53326 of the Act, the ballots for the special elections shall be distributed in person, or by mail with return postage prepaid, to the qualified electors within each of the Improvement Areas. The City Clerk has secured a certificate of the Registrar of Voters of the County of Riverside certifying that there were no registered voters within the District as of the date of such certificate. Accordingly, since there were fewer than 12 registered voters within the District for each of the 90 days preceding May 16, 2023, the qualified electors shall be the landowners within each of the Improvement Areas and each landowner, or the authorized representative thereof, shall have one vote for each acre or portion thereof that such landowner owns within the respective Improvement Areas, as provided in Section 53326 of the Act. The sole landowner within Improvement Area No. 1 has executed and delivered a waiver of certain election law requirements and consenting to the holding of the election on May 16, 2023, which waiver is on file with the City Clerk. The sole landowner within Improvement Area No. 2 has executed and delivered a waiver of certain election law requirements and consenting to the holding of the election on May 16, 2023, which waiver is on file with the City Clerk.
3 4861-3262-4734v3/022599-0032

SECTION 9. This Resolution shall be effective upon its adoption.

ADOPTED, SIGNED AND APPROVED this 16th day of May, 2023.

Julio Martinez III, Mayor of the City of Beaumont
(SEAL)
ATTEST:

Elaine Morgan, City Clerk
of the City of Beaumont
4 4861-3262-4734v3/022599-0032

STATE OF CALIFORNIA )
) ss.

COUNTY OF RIVERSIDE )
I, Elaine Morgan, City Clerk of the City of Beaumont, do hereby certify that the foregoing resolution was duly adopted by the City Council of said City, at a regular meeting of said City Council held on the le day of May, 2023, and that it was so adopted by the following vote:

AYES:

NOES:

ABSENT:

Elaine Morgan, City Clerk
City of Beaumont
5 4861-3262-4734v3/022599-0032

ATTACHMENT A

BALLOT PROPOSITIONS

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2023-1 (FAIRWAY CANYON) IMPROVEMENT AREA NO. 1

SPECIAL TAX AND SPECIAL BOND ELECTION
May 16, 2023
PROPOSITION A: Shall City of Beaumont Community
Facilities No. 2023-1 (Fairway Canyon) (the "District") incur an indebtedness and issue bonds in the maximum
principal amount of $3,500,000 for Improvement Area No. 1 therein (the "Improvement Area") with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 2023-06 of the City Council of the City of Beaumont?
PROPOSITION B: Shall special taxes with a rate and
method of apportionment for the Improvement Area as
provided in Resolution No. 2023-06 of the City Council of the City of Beaumont be levied to pay for the Facilities, Services and Incidental Expenses and other purposes
described in Resolution No. 2023-06, including the
payment of the principal of and interest on bonds issued by the District for the Improvement Area to finance the
Facilities and Incidental Expenses?
YES
NO
YES
NO
PROPOSITION C: For each year commencing with Fiscal
Year 2023-2024, shall the appropriations limit, as defined YES by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for the District be an amount equal NO to $5,000,000?
A-1
4861-3262-4734v3/022599-0032

ATTACHMENT B

BALLOT PROPOSITIONS

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2023-1 (FAIRWAY CANYON) IMPROVEMENT AREA NO. 2

SPECIAL TAX AND SPECIAL BOND ELECTION
May 16, 2023
PROPOSITION D: Shall City of Beaumont Community
Facilities No. 2023-1 (Fairway Canyon) (the "District") incur an indebtedness and issue bonds in the maximum
principal amount of $11,000,000 for Improvement Area No. 2 therein (the "Improvement Area") with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 2023-06 of the City Council of the City of Beaumont?
PROPOSITION E: Shall special taxes with a rate and
method of apportionment for the Improvement Area as
provided in Resolution No. 2023-06 of the City Council of the City of Beaumont be levied to pay for the Facilities, Services and Incidental Expenses and other purposes
described in Resolution No. 2023-06, including the
payment of the principal of and interest on bonds issued by the District for the Improvement Area to finance the
Facilities and Incidental Expenses?
YES
NO
YES
NO
PROPOSITION F: For each year commencing with Fiscal
Year 2023-2024, shall the appropriations limit, as defined YES by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for the District be an amount equal NO to $5,000,000?
B-1
4861-3262-4734v3/022599-0032

RESOLUTION NO. 23 -

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BEAUMONT,

CALIFORNIA ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF CITY OF BEAUMONT COMMUNITY FACILITIES DISTRICT NO.
2023-1 (FAIRWAY CANYON) CERTIFYING ELECTION RESULTS
WHEREAS, the City Council of the City of Beaumont called and duly held elections on May 16, 2023 within the boundaries of Improvement Area No. 1 ("Improvement Area No. 1") and within the boundaries of Improvement Area No. 2 ("Improvement Area No. 2") of City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon) ("Community Facilities District No. 2023-1" or the "District") pursuant to Resolution Nos. 2023-_ and 2023-_ for the purpose of presenting to the qualified electors within Improvement Area No. 1, Propositions A, B and C, attached hereto as Attachment A, and to the qualified electors within Improvement Area No. 2, Propositions D, E and F, attached hereto as Attachment B; and WHEREAS, there has been presented to this City Council a certificate of the City Clerk or Acting City Clerk (referred to herein as the "City Clerk") canvassing the results of the election within Improvement Area No. 1 and the results of the election within Improvement Area No. 2, a copy of which are attached hereto as Attachment C;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Beaumont, California:

SECTION 1. Each of the above recitals is true and correct and is adopted by the legislative body of the District.

SECTION 2. Propositions A, B and C set forth in Attachment A hereto presented to the qualified electors of Improvement Area No. 1 on May 16, 2023, were approved by more than two- thirds of the votes cast at said election and Propositions A, B and C each has carried. The City Council, acting as the legislative body of the District, is hereby authorized to levy on the land within Improvement Area No. 1 the special taxes described in Proposition B set forth in Attachment A hereto for the purposes described therein and to take the necessary steps to levy the special taxes authorized by Proposition B and to issue bonds in an amount not to exceed $3,500,000 specified in Proposition A set forth in Attachment A hereto.

SECTION 3. Propositions D, E and F set forth in Attachment B hereto presented to the qualified electors of Improvement Area No. 2 on May 16, 2023, were approved by more than two- thirds of the votes cast at said election and Propositions D, E and F each has carried. The City Council, acting as the legislative body of the District, is hereby authorized to levy on the land within Improvement Area No. 2 the special taxes described in Proposition E set forth in Attachment B hereto for the purposes described therein and to take the necessary steps to levy the special taxes authorized by Proposition E and to issue bonds in an amount not to exceed $11,000,000 specified in Proposition D set forth in Attachment B hereto.

SECTION 4. The City Clerk is hereby directed to record in the Assessor -County Clerk - Recorder's office of the County of Riverside within fifteen days of the date hereof a notice of special tax lien with respect to Improvement Area No. 1 and a notice of special tax lien with respect to 4885-2410-1470v3/022599-0032

Improvement Area No. 2, which Bond Counsel to the District shall prepare in the form required by Streets and Highways Code Section 3114.5.

SECTION 5. This Resolution shall be effective upon its adoption.

ADOPTED, SIGNED AND APPROVED this 16th day of May, 2023 Julio Martinez III, Mayor of the City of Beaumont
(SEAL)
ATTEST:

Elaine Morgan, City Clerk
of the City of Beaumont
2 4885-2410-1470v3/022599-0032

STATE OF CALIFORNIA )
) ss.

COUNTY OF RIVERSIDE )
I, Elaine Morgan, City Clerk of the City of Beaumont, do hereby certify that the foregoing resolution was duly adopted by the City Council of said City, at a regular meeting of said City Council held on the le day of May, 2023, and that it was so adopted by the following vote:

AYES:

NOES:

ABSENT:

Elaine Morgan, City Clerk
City of Beaumont
3 4885-2410-1470v3/022599-0032

ATTACHMENT A

BALLOT PROPOSITIONS

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2023-1 (FAIRWAY CANYON) IMPROVEMENT AREA NO. 1

SPECIAL TAX AND SPECIAL BOND ELECTION
May 16, 2023
PROPOSITION A: Shall City of Beaumont Community
Facilities No. 2023-1 (Fairway Canyon) (the "District") incur an indebtedness and issue bonds in the maximum
principal amount of $3,500,000 for Improvement Area No. 1 therein (the "Improvement Area") with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 2023-06 of the City Council of the City of Beaumont?
PROPOSITION B: Shall special taxes with a rate and
method of apportionment for the Improvement Area as
provided in Resolution No. 2023-06 of the City Council of the City of Beaumont be levied to pay for the Facilities, Services and Incidental Expenses and other purposes
described in Resolution No. 2023-06, including the
payment of the principal of and interest on bonds issued by the District for the Improvement Area to finance the
Facilities and Incidental Expenses?
YES
NO
YES
NO
PROPOSITION C: For each year commencing with Fiscal
Year 2023-2024, shall the appropriations limit, as defined YES by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for the District be an amount equal NO to $5,000,000?
A-1
4885-2410-1470v3/022599-0032

ATTACHMENT B

BALLOT PROPOSITIONS

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2023-1 (FAIRWAY CANYON) IMPROVEMENT AREA NO. 2

SPECIAL TAX AND SPECIAL BOND ELECTION
May 16, 2023
PROPOSITION D: Shall City of Beaumont Community
Facilities No. 2023-1 (Fairway Canyon) (the "District") incur an indebtedness and issue bonds in the maximum
principal amount of $11,000,000 for Improvement Area No. 2 therein (the "Improvement Area") with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 2023-06 of the City Council of the City of Beaumont?
PROPOSITION E: Shall special taxes with a rate and
method of apportionment for the Improvement Area as
provided in Resolution No. 2023-06 of the City Council of the City of Beaumont be levied to pay for the Facilities, Services and Incidental Expenses and other purposes
described in Resolution No. 2023-06, including the
payment of the principal of and interest on bonds issued by the District for the Improvement Area to finance the
Facilities and Incidental Expenses?
YES
NO
YES
NO
PROPOSITION F: For each year commencing with Fiscal
Year 2023-2024, shall the appropriations limit, as defined YES by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for the District be an amount equal NO to $5,000,000?
B-1
4885-2410-1470v3/022599-0032

ATTACHMENT C

CERTIFICATE OF CITY CLERK

AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS I, Elaine Morgan, City Clerk of the City of Beaumont, do hereby certify that I have examined the returns of the Special Tax and Bond Election for Improvement Area No. 1 of City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon) (the "City"). The election was held in the City Council Chambers, 550 East 6th Street, Beaumont, California, on May 16, 2023. I caused to be delivered ballots to each qualified elector. 0 ballots were returned.

I further certify that the results of said election and the number of votes cast for and against Propositions A, B and C for Improvement Area No. 1 are as follows:

PROPOSITION A PROPOSITION B PROPOSITION C
YES: YES: YES:

NO: NO: NO:

TOTAL: TOTAL: TOTAL:

I further certify that I have examined the returns of the Special Tax and Bond Election for Improvement Area No. 2 of Community Facilities District No. 2023-1 (Fairway Canyon) of the City.

The election was held in the City Council Chambers, 550 East 6th Street, Beaumont, California, on May 16, 2023. I caused to be delivered ballots to each qualified elector. (_) ballots were returned.

I further certify that the results of said election and the number of votes cast for and against Propositions D, E and F for Improvement Area No. 2 are as follows:

PROPOSITION D PROPOSITION E PROPOSITION F
YES: YES: YES:

NO: NO: NO:

TOTAL: TOTAL: TOTAL:

Dated this 16th day of May, 2023.

Elaine Morgan
City Clerk
City of Beaumont
C-1
4885-2410-1470v3/022599-0032

ORDINANCE NO. 23 -

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BEAUMONT,

CALIFORNIA ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF CITY OF BEAUMONT COMMUNITY FACILITIES DISTRICT NO.
2023-1 (FAIRWAY CANYON) AUTHORIZING THE LEVY OF SPECIAL TAXES WITHIN IMPROVEMENT AREA NO. 1 AND IMPROVEMENT
AREA NO. 2
WHEREAS, on April 4, 2023, the City Council (the "City Council") of the City of Beaumont (the "City") adopted Resolution No. 2023-06 declaring its intention to form City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon) (the "District") and Improvement Area No. 1 ("Improvement Area No. 1") and Improvement Area No. 2 ("Improvement Area No. 2" and together with Improvement Area No. 1, the "Improvement Areas" and each an "Improvement Area") therein pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the "Act"), and its Resolution No. 2023-07 declaring its intention to incur bonded indebtedness for each of Improvement Area No. 1 and Improvement Area No. 2; and WHEREAS, on May 16, 2023, after providing all notice required by the Act, the City Council conducted a noticed public hearing required by the Act relative to the proposed formation of the District, the designation of the Improvement Areas, the proposed levy of special taxes therein to finance certain public facilities and services described in Resolution No. 2023-06 and to secure the payment of any bonded indebtedness of the District for the Improvement Areas, and the proposed issuance of up to $3,500,000 of bonded indebtedness for Improvement Area No. 1 and up to $11,000,000 of bonded indebtedness for Improvement Area No. 2, as described in Resolution No. 2023-07; and
WHEREAS, at the May 16, 2023 public hearing, all persons desiring to be heard on all matters pertaining to the formation of the District, the designation of the Improvement Areas and the proposed levy of the special taxes to finance the facilities and services described in Resolution No. 2023-06 and to secure the payment of up to $3,500,000 of bonded indebtedness for Improvement Area No. 1 and of up to $11,000,000 of bonded indebtedness for Improvement Area No. 2 as described in Resolution No. 2023-07 (together, the "Bonds") were heard and a full and fair hearing was held; and
WHEREAS, on May 16, 2023, the City Council adopted Resolution Nos. 2023- and 2023- which formed the District, designated the Improvement Areas and called a special election within each of Improvement Area No. 1 and Improvement Area No. 2 on May 16, 2023 in each case on three propositions relating to the levy of special taxes within each Improvement Area, the issuance of the Bonds by the District for each Improvement Area and the establishment of an appropriations limit within the District; and
WHEREAS, on May 16, 2023, a special election was held within Improvement Area No. 1 at which the qualified electors therein approved by more than a two-thirds vote Propositions A, B and C set forth in Attachment B to Resolution No. 2023- authorizing the levy of special taxes within Improvement Area No. 1 for the purposes described in Resolution No. 23- , the issuance of the Bonds for Improvement Area No. 1 as described in Resolution No. 23- and establishing an appropriations limit for the District; and
4859-5030-6142v3/022599-0032

WHEREAS, on May 16, 2023, a special election was held within Improvement Area No. 2 at which the qualified electors therein approved by more than a two-thirds vote Propositions D, E and F set forth in Attachment C to Resolution No. 2023- authorizing the levy of special taxes within Improvement Area No. 2 for the purposes described in Resolution No. 23- , the issuance of the Bonds for Improvement Area No. 2 as described in Resolution No. 23- and establishing an appropriations limit for the District; and
NOW, THEREFORE, the City Council of the City of Beaumont, California does ordain as follows:

SECTION 1. The above recitals are all true and correct.

SECTION 2. By the passage of this Ordinance, the City Council authorizes and levies special taxes within Improvement Area No. 1 and Improvement Area No. 2 pursuant to Sections 53328 and 53340 of the Act at the rates and in accordance with the rate and method of apportionment set forth in Attachment C to Resolution No. 2023-06 as to Improvement Area No. 1 and the rate and method of apportionment set forth in Attachment D to Resolution No. 2023-06 as to Improvement Area No. 2, which are incorporated by reference herein (each a "Rate and Method").

The special taxes are hereby levied commencing in the fiscal year specified in the Rate and Method for such Improvement Area and in each fiscal year thereafter until payment in full of the Bonds issued by the District for such Improvement Area (including any bonds issued to refund the Bonds), payment of all costs of the public facilities and services authorized to be financed by the District for such Improvement Area, and payment of all costs of administering the District allocable to such Improvement Area.

SECTION 3. Each of the Mayor, the City Manager, or their written designees (each, an "Authorized Officer"), acting alone, is hereby authorized and directed each fiscal year to determine the specific special tax rates and amounts to be levied in such fiscal year on each parcel of real property within Improvement Area No. 1 and Improvement Area No. 2, in the manner and as provided in the Rate and Method applicable to such Improvement Area. The special tax rates levied on a parcel pursuant to each Rate and Method shall not exceed the maximum rates set forth in the Rate and Method for such parcel, but the special taxes may be levied at lower rates. Each Authorized Officer is hereby authorized and directed to provide all necessary information to the Treasurer -Tax Collector of the County of Riverside and to otherwise take all actions necessary in order to effect proper billing and collection of the special taxes within each Improvement Area, so that the special taxes shall be levied and collected in sufficient amounts and at times necessary to satisfy the financial obligations of the District for such Improvement Area in each fiscal year, and with respect to Special Tax A, until the Bonds issued by the District for such Improvement Area are paid in full, the facilities financed for such Improvement Area have been paid for, and provision has been made for payment of all of the related administrative costs of the District.

SECTION 4. Properties or entities of the state, federal or other local governments shall be exempt from the special taxes for each Improvement Area, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act and Section F of each Rate and Method. No other properties or entities within each of the Improvement Areas are exempt from the special taxes unless the properties or entities are expressly exempted in Resolution No. 2023- or in a resolution of consideration to levy a new special tax or special taxes or to alter the applicable Rate and Method or an existing special tax as provided in Section 53334 of the Act. 2 4859-5030-6142v3/022599-0032

SECTION 5. All of the collections of the special taxes within each Improvement Area shall be used as provided for in the Act, the Rate and Method for such Improvement Area and Resolution No. 2023- .

SECTION 6. The special taxes within each Improvement Area shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes (which such procedures include the exercise of all rights and remedies permitted by law to make corrections, including, but not limited to, the issuance of amended or supplemental tax bills), as such procedure may be modified by law or by this City Council from time to time.

SECTION 7. As a cumulative remedy, if any amount levied as a special tax for payment of the interest or principal of the Bonds issued by the District for an Improvement Area (including any bonds issued to refund such Bonds), together with any penalties and other charges accruing under this Ordinance, are not paid when due, the City Council may, not later than four years after the due date of the last installment of principal on such Bonds (including any bonds issued to refund such Bonds), order that the same be collected by an action brought in the superior court to foreclose the lien of such special tax within the applicable Improvement Area, as authorized by the Act.

SECTION 8. The Mayor of the City shall sign this Ordinance and the City Clerk or any Acting City Clerk (referred to herein as the "City Clerk") shall attest to the Mayor's signature and then cause the same to be published within fifteen (15) days after its passage at least once in The Press Enterprise, a newspaper of general circulation published and circulated in the City of Beaumont.

SECTION 9. The specific authorization for adoption of this Ordinance is pursuant to the provisions of Section 53340 of the Act.

SECTION 10. The City Clerk is hereby authorized to transmit a certified copy of this ordinance to the Treasurer -Tax Collector of the County of Riverside, and to perform all other acts which are required by the Act, this Ordinance or by law in order to accomplish the purpose of this Ordinance.

SECTION 11. A full reading of this Ordinance is dispensed with prior to its final passage, a written or printed copy having been available to the City Council and the public a day prior to its final passage.

SECTION 12. This Ordinance shall take effect thirty days after its final passage. 3 4859-5030-6142v3/022599-0032

PASSED, APPROVED and ADOPTED this _ day of , 2023.

Julio Martinez III, Mayor
I, Elaine Morgan, City Clerk of the City of Beaumont, California, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Beaumont held on the 16th day of May, 2023, and was adopted at a regular meeting of the City Council of the City of Beaumont on the day of , 2023, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Elaine Morgan, City Clerk
4 4859-5030-6142v3/022599-0032

ACQUISITION AGREEMENT
by and among

CITY OF BEAUMONT,

CITY OF BEAUMONT COMMUNITY FACILITIES DISTRICT
NO. 2023-1 (FAIRWAY CANYON)
and
MERITAGE HOMES OF CALIFORNIA, INC.

Dated as of May 1, 2023
4892-6939-1454v2/022599-0032

TABLE OF CONTENTS

ARTICLE I
Section 1.1

ARTICLE II
Section 2.1
Section 2.2
Section 2.3
Section 2.4
Section 2.5

ARTICLE III
Section 3.1
Section 3.2
Section 3.3
Section 3.4
Section 3.5
Section 3.6

ARTICLE IV
Section 4.1
Section 4.2
Section 4.3
Section 4.4
Section 4.5
Section 4.6
Section 4.7

ARTICLE V
Section 5.1
Section 5.2
Section 5.3

ARTICLE VI
Section 6.1
Section 6.2

ARTICLE VII
Section 7.1
Section 7.2
Section 7.3

ARTICLE VIII
Section 8.1
Section 8.2
Section 8.3
Page
DEFINITIONS 2
Definitions 2
FUNDING 4
Issuance of Bonds 4
Special Taxes and Bonds 5
Net Proceeds 5
Funding Facilities in Other Fairway Canyon Districts 6
Disclosure of Special Tax 6
CONSTRUCTION AND ACQUISITION OF FACILITIES 6
Duty of Owner to Construct 6
Inspection 6
Agreement to Sell and Acquire Facilities 6
Payment Requests 7
Payment 8
Defective or Nonconforming Work 9
OWNERSHIP AND TRANSFER OF FACILITIES 9
Facilities to be Owned by the City; Conveyance of Land and Easements to City .... 9 Facilities to be Owned by the City; Title Evidence
Facilities Constructed on Private Lands
Facilities Constructed on City Land
Maintenance and Warranties
Allocation of Costs
Expectations of the Parties

INSURANCE
Insurance Requirements
Standards Applicable
Evidence of Insurance
10 10
10 10
11 11
12 12
13 13
REPRESENTATIONS, WARRANTIES AND COVENANTS 13
Representations, Covenants and Warranties of the Owner 13 Indemnification and Hold Harmless 14
TERMINATION 14
Mutual Consent 14
City Election to Terminate for Cause 15
Force Majeure 16
MISCELLANEOUS 16
Limited Liability of City 16
Excess Costs 16
Review of Records 16
4892-6939-1454v2/022599-0032