Agenda packet — Beaumont City Council, March 4, 2025 (part 12 of 13)

City of Beaumont
Qualifications for Municipal Advisory Services February 2025 AA'k
City of Lake Elsinore - Since 2014, UFI has provided Municipal Advisory Services to the City of Lake Elsinore on approximately $287 million of land secured financings, lease revenue bonds, tax allocation bonds, and private placements.
. .. Notably in 2014, we completed a pooled CFD refunding similar to one being contemplated by the City.

UFI evaluated all of the City's outstanding CFD bonds and determined that there were several refinancing opportunities that would provide significant savings. Specifically, we identified steps to refinance six CFD bonds which could produce savings. As we began to move forward on the refinancing, interest rates fell, which enabled two additional CFD bonds for inclusion into the pool. Early in the refunding process, UFI inquired as to whether all of the capital facilities which were built within the district were subject to the refinancing. By asking this very simple question, we discovered three neighborhood parks which did not get fully built due to the financial impacts from the Great Recession and we now had a potential funding source to complete them. As a result, savings generated for each CFD were used to either: (1) reduce special taxes paid by existing property owners, or (2) complete unfinished projects that were originally approved to be funded from the CFD.

MENIFEE
City of Menifee - UFI has been pleased to assist the City of Menifee in various capacities over the past several years. Most notably, we have been assisting the City with execution of its inaugural CFD program financings, completing ten land secured transactions for over $80 million of par since 2022.

In July 2023, we closed an $11.525 million bond issue for CFD 2022-1 (Quartz Ranch). The Quartz Ranch bonds were issued to finance the purchase, construction, expansion or rehabilitation of certain public facilities to serve the area within the District. The 2023 Bonds priced on June 28, 2023 and were met with strong investor demand, receiving 96 investor orders totaling $38.5 million. As a result of strong investor interest, the underwriter able to reduce yields by 0.02% to 0.06% across various maturities. The final true interest cost for the transaction was 4.97%, which was

0.33% below the good faith estimates presented to the City Council, resulting in $486,939 in additional net proceeds from such estimates.

In addition, in 2022, we were engaged via a competitive process to provide consulting and municipal advisory services on the City's proposed Civic Center project. As part of the engagement, UFI's Public Management Group was hired to prepare a financial forecast to help the City in assessing its overall fiscal health. Since incorporation in 2008, the City has grown 84% and is currently the fifth fastest gowning city in California. Menifee has a population of over 110,000 residents and is expected to have 150,000 residents by 2045. The City's current City Hall facility does not provide sufficient space to meet service delivery needs over the next several years. The City is currently completing a space needs assessment to determine next steps with constructing a new facility.

City of Ontario
UFI was engaged by the City of Ontario in 2023 via a competitive RFP process. Since 2023, we have assisted the City with three CFD financings and four CFD formations. In addition, UFI is actively working with the City on three additional CFD formations for residential and industrial development projects. As part of our work with the City, we engage with various developer teams to ensure that the City's needs and objectives are met in forming districts in the Ontario Ranch area, which is expected to include 24,000 homes at buildout.

In August 2024, UFI served as municipal advisor on a $44 million fixed rate water revenue bond financing for the City. The new money bonds funded various improvements to the City's water system, including well and water main improvements. UFI coordinated all aspects of the financing process and worked with the underwriter to develop a credit strategy that highlighted the diversified system water supplies and strong local economy. As a result of the rating process, S&P raised its long-term rating on the City's outstanding water bonds to "AA+" from "AA" based upon the system's very strong debt service coverage and liquidity metrics. The bonds priced on August 7, 2024. Despite volatile conditions in the market and rising MMD yields, the bonds received strong investor demand, with $106.8 ?AFI
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City of Beaumont
Qualifications for Municipal Advisory Services
February 2025
million in total orders (2.5x oversubscribed) across 19 unique accounts. Based on the strong order period, the underwriter reduced spreads on several oversubscribed maturities through 2039, resulting in a final TIC of 3.72%.

City of Culver City Wastewater Facilities Revenue Bonds— UFI advised the City of Culver City on the sale of its 2019 A Wastewater Facilities Revenue Bonds, which were issued to refund existing bonds and finance $12 million of capital improvements. UFI was selected as municipal advisor by the City in June 2019 via a competitive bid process. Once selected as municipal advisor, we assisted the City in issuing RFPs for bond/disclosure counsel and making selections of those firms.

UFI worked diligently with the City to identify capital projects to be debt financed. At the time of the sale, the City maintained a large amount of excess cash reserves. UFI advised the City on an appropriate reserves level and advised on how to use excess cash for its capital spending program and to address the pension liability allocated to its wastewater enterprise. UFI was instrumental in the credit analysis and structuring of the issues. Given the large variances in payments the City makes to the City of Los Angeles for wastewater treatment, UFI helped to structure the 2019 Bonds to maintain target coverage in line with S&P's fixed -charge coverage methodology. The efforts resulted in the rating being affirmed at AA- and a successful sale.

UFI
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City of Beaumont
Qualifications for Municipal Advisory Services
February 2025

CONTACT
1470 Maria Lane, Suite 315, Walnut
Creek, CA 94596
TEL: (714) 923-3541
EMAIL:

[email protected]

EDUCATION
M.P.A. — Finance and Public Works
Cal State University, Long Beach
B. A., Urban and Regional Planning
Cal State Polytechnic University, Pomona

PROFESSIONAL AFFILIATIONS
Innovating Commerce Serving
Communities (ICSC)
California Society of Municipal Finance
Officers (CSMFO)
Past President — Municipal Management
Association of Southern California
(MMASC)
Past Chair — Cal-ICMA
UFI

MICHAEL BUSCH
Chief Strategy Officer
Profile
Michael Busch is an accomplished municipal executive and public finance professional who has helped manage several public agencies as an assistant city manager and finance director. Through his leadership of UFI and engagement with professional organizations, Michael helps cities, counties, special districts, and nonprofits across the State of California identify emerging trends, engage in critical policy issues, exchange proven practices, and advance their missions through sound fiscal and operational policy. During his 14 -year tenure with UFI, numerous public agencies have engaged Michael as both a strategic consultant and municipal advisor based on his public finance expertise and broad understanding of fiscal issues affecting the public sector. Michael has worked on over $5 billion in tax-exempt and taxable debt, including lease revenue bonds/COPs, water/wastewater revenue bonds, TABs, CFD and assessment district bonds, and New Market Tax Credits. He has executed transactions for cities with large and diverse CFD programs, including the Cities of Lake Elsinore, Beaumont, Menifee, Ontario, Coachella and Desert Hot Springs.

Relevant Project Experience
• City of Menifee — Various CFD Bonds; City Hall Project • City of Eastvale - Project Planning & MA Services for Civic Center Project
• City of Beaumont — CFD Bonds and wastewater revenue bonds • San Jacinto City Hall/Parking Structure Downtown Development P3 Project
• Lake Elsinore — CFD Bonds and numerous other assignments since 2014
• Desert Hot Springs — CFD Bonds and 2022 Lease Revenue Bonds (City Hall and Police Station Expansion Project)
• City of Coachella — CFD Bonds and Lease Revenue Bonds • Cit of Ontario — CFD Bonds and Water Revenue Bonds
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City of Beaumont
Qualifications for Municipal Advisory Services February 2025

CONTACT
ADDRESS:
1470 Maria Lane, Suite 315, Walnut
Creek, CA 94596
PHONE:
(714) 923-3560
WEBSITE:
www.urbanfuturesinc.com
EMAIL:
[email protected]

EDUCATION
BS, Finance
New York University

PROFESSIONAL AFFILIATIONS
California Society of Municipal Finance
Officers (CSMFO)
UFI

BRANDEN KFOURY
Director
Profile
Branden Kfoury joined Urban Futures in 2019. He has worked on a variety of debt offerings for cities and special districts in California including, but not limited to utility revenue bonds, general obligation bonds, lease revenue bonds, CFD and assessment district bonds, as well as tax allocation bonds. Mr. Kfoury has extensive experience in all aspects of the bond financing process and excels at providing value-added debt structuring, credit and quantitative analysis.

Previously, Mr. Kfoury worked as a Senior Associate at Fieldman, Rolapp & Associates where he supported the firm's city and special district clients. Mr.

Kfoury has held prior roles in public finance investment banking, bond insurance, as well as in the technology industry. He graduated Cum Laude from New York University with a Bachelor of Science degree in Finance and a minor in Politics.

Relevant Project Experience
• City of Menifee — Various CFD Bonds; Project Planning & MA Services for Civic Center Facility
• City of Lake Elsinore — CFD Bonds and Lease Revenue Bonds • City of Ontario — CFD Bonds and Water Revenue Bonds
• City of Moorpark — CFD Refunding Bonds
• City of Oceanside — CFD Refunding Bonds
• City of Fullerton — CFD Refunding Bonds
• City of Eastvale - Project Planning & MA Services for Civic Center Facility
• Culver City — Wastewater refunding bonds
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City of Beaumont
Qualifications for Municipal Advisory Services February 2025 Regulatory Disclosure
Disclosure of Conflicts of Interest and Legal or Disciplinary Events. Pursuant to Municipal Securities Rulemaking Board ("MSRB") Rule G-42, on Duties of Non -Solicitor Municipal Advisors, Municipal Advisors are required to make certain written disclosures to clients and potential clients which include, amongst other things, Conflicts of Interest and any Legal or Disciplinary events of Urban Futures, Inc. ("UFI") and its associated persons.

Conflicts of Interest. Compensation. UFI represents that in connection with the issuance of municipal securities, UFI may receive compensation from an Issuer or Obligated Person for services rendered, which compensation is contingent upon the successful closing of a transaction and/or is based on the size of a transaction. Consistent with the requirements of MSRB Rule G-42, UFI hereby discloses that such contingent and/or transactional compensation may present a potential conflict of interest regarding UFI's ability to provide unbiased advice to enter into such transaction. This conflict of interest will not impair UFI's ability to render unbiased and competent advice or to fulfill its fiduciary duty to the Issuer.

It should be noted that other forms of compensation (i.e., hourly or fixed fee based) may also present a potential conflict of interest regarding UFI's ability to provide advice regarding a municipal security transaction. These other potential conflicts of interest will not impair UFI's ability to render unbiased and competent advice or to fulfill its fiduciary duty to the Issuer.

Other Municiaal Advisor Relationships. UFI serves a wide variety of other clients that may from time to time have interests that could have a direct or indirect impact on the interests of another UFI client. These other clients may, from time to time and depending on the specific circumstances, have competing interests. In acting in the interests of its various clients, UFI could potentially face a conflict of interest arising from these competing client interests.

UFI fulfills its regulatory duty and mitigates such conflicts through dealing honestly and with the utmost good faith with its clients.

If UFI becomes aware of any additional potential or actual conflict of interest after this disclosure, UFI will disclose the detailed information in writing to the issuer or obligated person in a timely manner.

Legal or Disciplinary Events. UFI does not have any legal events or disciplinary history on UFI's Form MA and Form MA -I, which includes information about any criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations and civil litigation. The Issuer may electronically access UFI's most recent Form MA and each most recent Form MA -I filed with the Commission at the following website: www.sec.gov/edgar/searchedgar/companysearch.html .

There have been no material changes to a legal or disciplinary event disclosure on any Form MA or Form MA -I filed with the SEC. If any material legal or regulatory action is brought against UFI, UFI will provide complete disclosure to the Issuer in detail allowing the Issuer to evaluate UFI, its management and personnel ffUFI
Financta Solulifab

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SUFI
Financial Solutions
February 26, 2025
FROM: Urban Futures, Inc.

Michael Busch, Chief Strategy Officer
TO: Jennifer Ustation
Finance Director
City of Beaumont
550 E. 6th Street
Beaumont, CA 92223
RE: Engagement Letter for Refinancing of the City's Outstanding Wastewater Revenue Bonds, Seies 2018
Dear Ms. Ustation:

This letter specifies the terms of the engagement between Urban Futures, Inc., located at 1470 Maria Lane, Suite 315, Walnut Creek, CA 94596 and the City of Beaumont ("City") located at 550 E. 6th Street, Beaumont CA 92223.

This engagement between the City and Urban Futures, Inc. ("UFI") shall become effective as of the date of its acceptance as provided below.

Scope of Activities to be Performed
Municipal Advisory Services' will include the following:
• Assist in developing the plan of finance and related transaction timetable; • Identify and analyze financing solutions, bond structuring alternatives, including bond rating and insurance; prepare and review preliminary cash flows; • Advise on the method of sale, taking into account market conditions and near -term activity in the municipal market;
• Assist with negotiated sale, including advice regarding retail order periods and institutional marketing, analysis of comparable bonds and secondary market data, verify cash flow calculations, and serve as Pricing Advisor;
• Participate in staff meetings/conference calls related to the issuance of the bonds; i Per Section 15B(e)(4)(A) of the Exchange Act, as amended by the Dodd -Frank Act, municipal advisory services means providing advice to or on behalf of a municipal entity or obligated person with respect to municipal financial products or the issuance of municipal securities, including advice with respect to the structure, timing, terms, and other similar matters concerning such financial products or issues.

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• Prepare preliminary costs of issuance;
• Draft staff reports for and attend City Council meetings, as requested; • Review documents and reports and provide input on legal structure of bonds; • Assist with underwriter compensation issues and bond allocations, as appropriate; • Assist in procuring printers, appraisers, and other vendors as necessary; and • Plan and coordinate bond closings.

From time to time, Urban Futures Inc. may provide other non -municipal advisory services including, but not limited to placement of loans/leases, disclosure services without materiality analysis, and other administrative functions.

Independent Registered Municipal Advisor ("IRMA")
If acting in the capacity of an Independent Registered Municipal Advisor ("IRMA") with regard to the IRMA exemption of the SEC Rule, Urban Futures, Inc. will review all third -party recommendations submitted to Urban Futures, Inc. in writing by the City.

Term of Engagement Agreement
The commencement date of the agreement is the date of its acceptance, and the end date June 30, 2025, or the bond closing date of the subject transaction, whichever occurs first. Any extensions must be mutually agreed upon by all parties in writing.

Termination of Engagement Agreement
The City may terminate the whole or any part of this Agreement at any time and without cause by giving sixty (60) days' written notice to Urban Futures, Inc. of such termination, and specifying the effective date thereof. Urban Futures, Inc. shall discontinue all Services affected by such termination within thirty (30) days of receipt of such notice, unless otherwise instructed by the City in writing. Urban Futures, Inc. may terminate this agreement by giving the City sixty (60) days' written notice.

In the event Services are terminated by the City, Urban Futures, Inc. will be compensated for services provided up to the termination date.

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• Data Services (Bloomberg, Thompson Reuters, DBC)
• Travel (mileage, airfare, hotels, etc.)
Fiduciary Duty
Urban Futures, Inc. is currently registered as a Municipal Advisor with the U.S. Securities and Exchange Commission ("SEC") and Municipal Securities Rulemaking Board ("MSRB"). As such, Urban Futures, Inc. has a Fiduciary Duty to the City and must provide both a Duty of Care and a Duty of Loyalty that entails the following.

Duty of Care:
a) exercise due care in performing its municipal advisory activities; b) possess the degree of knowledge and expertise needed to provide the City with informed advice;
c) make a reasonable inquiry as to the facts that are relevant to the City's determination as to whether to proceed with a course of action or that form the basis for any advice provided to the City; and
d) undertake a reasonable investigation to determine that Urban Futures, Inc. is not forming any recommendation on materially inaccurate or incomplete information; Urban Futures, Inc. must have a reasonable basis for:
i. any advice provided to or on behalf of the City;
ii. any representations made in a certificate that it signs that will be reasonably foreseeably relied upon by the City, any other party involved in the municipal securities transaction or municipal financial product, or investors in the City securities; and
iii. any information provided to the City or other parties involved in the municipal securities transaction in connection with the preparation of an official statement.

Duty of Loyalty:

Urban Futures, Inc. must deal honestly and with the utmost good faith with the City and act in the City's best interests without regard to the financial or other interests of Urban Futures, Inc.

Urban Futures, Inc. will eliminate or provide full and fair disclosure (included herein) to the City about each material conflict of interest (as applicable). Urban Futures, Inc. will not engage in municipal advisory activities with the City as a municipal entity, if it cannot manage or mitigate its conflicts in a manner that will permit it to act in the City's best interests.

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to clients which include, amongst other things, Conflicts of Interest and any Legal or Disciplinary events of Urban Futures, Inc. and its associated persons.

As of the date of the Agreement, there are no actual or potential material conflicts of interest that Urban Futures, Inc. is aware of that might impair its ability to render unbiased and competent advice or to fulfill its fiduciary duty. If Urban Futures, Inc. becomes aware of any material potential conflict of interest that arise after this disclosure, Urban Futures, Inc. will disclose the detailed information in writing to the City in a timely manner.

The following are potential conflicts of interest to be considered:
• Urban Futures, Inc. represents that in connection with the issuance of municipal securities, Urban Futures, Inc. may receive compensation from an Issuer or Obligated Person for services rendered, which compensation is contingent upon the successful closing of a transaction and/or is based on the size of a transaction. Consistent with the requirements of MSRB Rule G-42, Urban Futures, Inc. hereby discloses, that such contingent and/or transactional compensation may present a potential conflict of interest regarding Urban Futures, Inc.'s ability to provide unbiased advice to enter into such transaction. The contingent fee arrangement creates an incentive for Urban Futures, Inc. to recommend unnecessary financings or financings that are disadvantageous to the City, or to advise City to increase the size of the issue. This potential conflict of interest will not impair Urban Futures, Inc.'s ability to render unbiased and competent advice or to fulfill its fiduciary duty to the City;
• Urban Futures, Inc.'s fees under this agreement may be based on hourly fees of Urban Futures, Inc.'s personnel, with the aggregate amount equaling the number of hours worked by such personnel times an agreed -upon hourly billing rate. This form of compensation presents a potential conflict of interest because it could create an incentive for Urban Futures, Inc. to recommend alternatives that would result in more hours worked. This conflict of interest will not impair Urban Futures, Inc.'s ability to render unbiased and competent advice or to fulfill its fiduciary duty to the City; • Urban Futures, Inc.'s fees under this agreement, may be a fixed amount established at the outset of the Agreement. The amount is usually based upon an analysis by City and Urban Futures, Inc. of, among other things, the expected duration and complexity of the transaction and the Scope of Services to be performed by Urban Futures, Inc. This form of compensation presents a potential conflict of interest because, if the transaction requires more work than originally contemplated, Urban Futures, Inc. may suffer a loss.

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• The fee paid to Urban Futures, Inc. increases the cost of investment to the City. The increased cost occurs from compensating Urban Futures, Inc. for municipal advisory services provided;
• Urban Futures, Inc. serves a wide variety of other clients that may from time to time have interests that could have a direct or indirect impact on the interests of another Urban Futures, Inc. client. For example, Urban Futures, Inc. serves as municipal advisor to other municipal advisory clients and, in such cases, owes a regulatory duty to such other clients just as it does to the City. These other clients may, from time to time and depending on the specific circumstances, have competing interests. In acting in the interests of its various clients, Urban Futures, Inc. could potentially face a conflict of interest arising from these competing client interests. Urban Futures, Inc. fulfills its regulatory duty and mitigates such conflicts through dealing honestly and with the utmost good faith with the City;
• Urban Futures, Inc. does not have any affiliate that provides any advice, service, or product to or on behalf of the client that is directly or indirectly related to the municipal advisory activities to be performed by Urban Futures, Inc.; • Urban Futures, Inc. has not made any payments directly or indirectly to obtain or retain the City's municipal advisory business;
• Urban Futures, Inc. has not received any payments from third parties to Urban Futures, Inc.'s recommendation to the City of its services, any municipal securities transaction or any municipal finance product;
• Urban Futures, Inc. has not engaged in any fee -splitting arrangements involving Urban Futures, Inc. and any provider of investments or services to the City; • Urban Futures, Inc. does not have any legal or disciplinary event that is material to the City's evaluation of the municipal advisory or the integrity of its management or advisory personnel;
• Urban Futures, Inc. does not act as principal in any of the transaction(s) related to this Agreement; and
• Randall Merritt, a Managing Principal, previously worked at Raymond James & Associates, Inc. from December 2015 until December 2023. Urban's relationships with Raymond James and all other investment banks are conducted in an arm's length manner, and any recommendations are independent of any prior employment or other relationships.

Legal Events and Disciplinary History
Urban Futures, Inc. does not have any legal events and disciplinary history on its Form MA and Form MA -I, which includes information about any criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations and civil litigation. The City may electronically access Urban Futures, Inc.'s most 5

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recent Form MA and each most recent Form MA -I filed with the Commission at the following website: www.sec.gov/edgar/searchedgar/companysearch.html .

There have been no material changes to a legal or disciplinary event disclosure on any Form MA or Form MA -I filed with the SEC.

Recommendations
If Urban Futures, Inc. makes a recommendation of a municipal securities transaction or municipal financial product or if the review of a recommendation of another party is requested in writing by the City and is within the scope of the engagement, Urban Futures, Inc. will determine, based on the information obtained through reasonable diligence of Urban Futures, Inc. whether a municipal securities transaction or municipal financial product is suitable for the City. In addition, Urban Futures, Inc. will inform the City of:
• the evaluation of the material risks, potential benefits, structure, and other characteristics of the recommendation;
• the basis upon which Urban Futures, Inc. reasonably believes that the recommended municipal securities transaction or municipal financial product is, or is not, suitable for the City; and
• whether Urban Futures, Inc. has investigated or considered other reasonably feasible alternatives to the recommendation that might also or alternatively serve the City's objectives.

If the City elects a course of action that is independent of or contrary to the advice provided by Urban Futures, Inc., Urban Futures, Inc. is not required on that basis to disengage from the City.

Municipal Securities Rulemaking Board Rule G-10 Disclosure Pursuant to Municipal Securities Rulemaking Board Rule G-10, on Investor and Municipal Advisory Client Education and Protection, Municipal Advisors are required to provide certain written information to their municipal entity and obligated person clients which include the following:
• Urban Futures, Inc. is currently registered as a Municipal Advisor with the U.S. Securities and Exchange Commission ("SEC") and Municipal Securities Rulemaking Board ("MSRB"). • Within the Municipal Securities Rulemaking Board ("MSRB") website at www.msrb.org , the City may obtain the Municipal Advisory client brochure that is posted on the MSRB website. The brochure describes the protections that may be provided by the MSRB Rules along with how to file a complaint with financial regulatory authorities. 6

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Record Retention
Effective July 1, 2014, pursuant to the Securities and Exchange Commission (SEC) record retention regulations, Urban Futures, Inc. is required to maintain in writing, all communication and created documents between Urban Futures, Inc. and the City for 5 years.

If there are any questions regarding the above, please do not hesitate to contact Urban Futures, Inc. If the foregoing terms meet with your approval, please indicate your acceptance by executing and returning a copy of this letter.

Sincerely,
Michael Busch, Chief Strategy Officer
Urban Futures, Inc.

City of Beaumont
By:
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SUFI
Financial Solutions
February 26, 2025
FROM: Urban Futures, Inc.

Michael Busch, Chief Strategy Officer
TO: Jennifer Ustation
Finance Director
City of Beaumont
550 E. 6th Street
Beaumont, CA 92223
RE: Engagement Letter for the Refinancing of BFA 2015A 93-1 IA -7A1 (Four Seasons), BFA 2015B 93-1 IA -19A (Four Seasons), BFA 2015C 93-1 IA -18 (Stetson), BFA 2015D 93-1 IA - 16 (Shadow Creek), 2017 CFD 93-1 IA -8B (Sundance), 2017 CFD 93-1 IA -14A (Oak Valley), 2017 CFD 93-1 IA -14 (Oak Valley), 2017 CFD 93-1 IA -8 (Sundance), 2018 CFD 93-1 IA -17C (Tournament Hills), 2018 CFD 93-1 IA -8C (Sundance), 2018 CFD 93-1 IA -8D (Sundance), 2018 CFD 93-1 IA -7B (Four Seasons), 2018 CFD 93-1 IA -7D (Four Seasons), 2018 CFD 93-1 IA -8E (Sundance), 2019 CFD 2016-1 (Fairway Canyon), 2019 CFD 2016- 2 (Sundance), 2019 CFD 2016-4 (Four Seasons), Special Tax Refunding Bonds, Series 2025
Dear Ms. Ustation:

This engagement between the City and Urban Futures, Inc. ("UFI") shall become effective as of the date of its acceptance as provided below.

Scope of Activities to be Performed
Municipal Advisory Services' will include the following:
• Assist in developing the plan of finance and related transaction timetable; i Per Section 15B(e)(4)(A) of the Exchange Act, as amended by the Dodd -Frank Act, municipal advisory services means providing advice to or on behalf of a municipal entity or obligated person with respect to municipal financial products or the issuance of municipal securities, including advice with respect to the structure, timing, terms, and other similar matters concerning such financial products or issues.

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• Identify and analyze financing solutions, bond structuring alternatives, including bond rating and insurance; prepare and review preliminary cash flows; • Review pay -go and assessment balances held by the Trustee to evaluate the options for inclusion in the refinancing assumptions;
• Evaluate the options to close out all transactions associated with the Beaumont Financing Authority;
• Evaluate the option to remove all annual assessment escalators; • Advise on the method of sale, taking into account market conditions and near -term activity in the municipal market;
• Assist with negotiated sale, including advice regarding retail order periods and institutional marketing, analysis of comparable bonds and secondary market data, verify cash flow calculations, and serve as Pricing Advisor;
• Participate in staff meetings/conference calls related to the issuance of the bonds; • Prepare preliminary costs of issuance;
• Draft staff reports for and attend City Council meetings, as requested; • Review documents and reports and provide input on legal structure of bonds; • Assist with underwriter compensation issues and bond allocations, as appropriate; • Assist in procuring printers, appraisers, and other vendors as necessary; and • Plan and coordinate bond closings.

Term of Engagement Agreement
The commencement date of the agreement is the date of its acceptance, and the end date is June 30, 2025, or the bond closing date of the subject transaction, whichever occurs first. Any extensions must be mutually agreed upon by all parties in writing.

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termination within thirty (30) days of receipt of such notice, unless otherwise instructed by the City in writing. Urban Futures, Inc. may terminate this agreement by giving the City sixty (60) days' written notice.

In the event Services are terminated by the City, Urban Futures, Inc. will be compensated for services provided up to the termination date.

Compensation and Out -of -Pocket Expenses
Compensation for the municipal advisory activities to be performed for this engagement is contingent upon the successful close of the bonds. For the subject transaction, the fee for municipal advisory services will be $12,500 inclusive of reimbursement of expenses for each CFD refinanced. Expense reimbursements will cover the following:
• Mandatory SEC/MSRB Compliance Requirements & Reporting • Data Services (Bloomberg, Thompson Reuters, DBC)
• Travel (mileage, airfare, hotels, etc.)
Fiduciary Duty
Urban Futures, Inc. is currently registered as a Municipal Advisor with the U.S. Securities and Exchange Commission ("SEC") and Municipal Securities Rulemaking Board ("MSRB"). As such, Urban Futures, Inc. has a Fiduciary Duty to the City and must provide both a Duty of Care and a Duty of Loyalty that entails the following.

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iii. any information provided to the City or other parties involved in the municipal securities transaction in connection with the preparation of an official statement.

Duty of Loyalty:

Urban Futures, Inc. must deal honestly and with the utmost good faith with the City and act in the City's best interests without regard to the financial or other interests of Urban Futures, Inc.

Conflicts of Interest and Other Matters Requiring Disclosures Pursuant to Municipal Securities Rulemaking Board ("MSRB") Rule G-42, on Duties of Non - Solicitor Municipal Advisors, Municipal Advisors are required to make certain written disclosures to clients which include, amongst other things, Conflicts of Interest and any Legal or Disciplinary events of Urban Futures, Inc. and its associated persons.

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compensation presents a potential conflict of interest because it could create an incentive for Urban Futures, Inc. to recommend alternatives that would result in more hours worked. This conflict of interest will not impair Urban Futures, Inc.'s ability to render unbiased and competent advice or to fulfill its fiduciary duty to the City; • Urban Futures, Inc.'s fees under this agreement, may be a fixed amount established at the outset of the Agreement. The amount is usually based upon an analysis by City and Urban Futures, Inc. of, among other things, the expected duration and complexity of the transaction and the Scope of Services to be performed by Urban Futures, Inc. This form of compensation presents a potential conflict of interest because, if the transaction requires more work than originally contemplated, Urban Futures, Inc. may suffer a loss.

Thus, Urban Futures, Inc. may recommend less time-consuming alternatives, or fail to do a thorough analysis of alternatives. This conflict of interest will not impair Urban Futures, Inc. ability to render unbiased and competent advice or to fulfill its fiduciary duty to the City;
• The fee paid to Urban Futures, Inc. increases the cost of investment to the City. The increased cost occurs from compensating Urban Futures, Inc. for municipal advisory services provided;
• Urban Futures, Inc. serves a wide variety of other clients that may from time to time have interests that could have a direct or indirect impact on the interests of another Urban Futures, Inc. client. For example, Urban Futures, Inc. serves as municipal advisor to other municipal advisory clients and, in such cases, owes a regulatory duty to such other clients just as it does to the City. These other clients may, from time to time and depending on the specific circumstances, have competing interests. In acting in the interests of its various clients, Urban Futures, Inc. could potentially face a conflict of interest arising from these competing client interests. Urban Futures, Inc. fulfills its regulatory duty and mitigates such conflicts through dealing honestly and with the utmost good faith with the City;
• Urban Futures, Inc. does not have any affiliate that provides any advice, service, or product to or on behalf of the client that is directly or indirectly related to the municipal advisory activities to be performed by Urban Futures, Inc.; • Urban Futures, Inc. has not made any payments directly or indirectly to obtain or retain the City's municipal advisory business;
• Urban Futures, Inc. has not received any payments from third parties to Urban Futures, Inc.'s recommendation to the City of its services, any municipal securities transaction or any municipal finance product;
• Urban Futures, Inc. has not engaged in any fee -splitting arrangements involving Urban Futures, Inc. and any provider of investments or services to the City; • Urban Futures, Inc. does not have any legal or disciplinary event that is material to the City's evaluation of the municipal advisory or the integrity of its management or advisory personnel;
5

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• Urban Futures, Inc. does not act as principal in any of the transaction(s) related to this Agreement; and
• Randall Merritt, a Managing Principal, previously worked at Raymond James & Associates, Inc. from December 2015 until December 2023. Urban's relationships with Raymond James and all other investment banks are conducted in an arm's length manner, and any recommendations are independent of any prior employment or other relationships.

There have been no material changes to a legal or disciplinary event disclosure on any Form MA or Form MA -I filed with the SEC.

If the City elects a course of action that is independent of or contrary to the advice provided by Urban Futures, Inc., Urban Futures, Inc. is not required on that basis to disengage from the City. 6

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Sincerely,
Michael Busch, Chief Strategy Officer
Urban Futures, Inc.

City of Beaumont
By:
7

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STIFEL
February 27, 2025
Public Finance
Jennifer Ustation, Finance Director
City of Beaumont
550 East 6th Street
Beaumont, California 92223
2121 Avenue of the Stars, Suite 2150
Los Angeles, CA 90067
Municipal Securities Group
Tel. 213-443-5000
Re: Stifel Statement of Qualifications and Fee Proposal Related to Underwriting Services:

Beaumont Public Improvement Authority Wastewater Revenue Bonds, Series 2018A Outstanding Special Tax Bonds Issued by Community Facilities Districts within the City Dear Jennifer,
Thank you for the opportunity to provide our qualifications to serve as underwriter on the contemplated refunding of the Beaumont Public Improvement Authority Wastewater Revenue Bonds, Series 2018A ("Wastewater Bonds"), and on the possible refunding of outstanding special tax bonds issued by community facilities districts within the City ("CFD Bonds"). We understand that each engagement would have a termination date of June 30, 2025.

As you know, we have been monitoring the savings of both the Wastewater Bonds and CFD Bonds and updating staff regularly over the past year. Based on market conditions as of February 26, total net present value savings of the Wastewater Bonds are estimated to be $3.9 million (5.4% of par value refunded). Of the 18 outstanding special tax bonds issued by various CFDs within the City that are eligible to be refinanced in 2025, 10 are estimated to generate positive savings. Of those that generate more than 3.0% net present value savings (frequently quoted savings benchmark), total net present value savings are estimated to be $1.6 million (5.5% of aggregate par value refunded), based on current market conditions. Please note that savings and the number of bond issues economic to refinance are highly dependent on market conditions. The current list of outstanding special tax bonds generating positive savings based on current market conditions are the following (combined outstanding par amount of $82.9 million):

1. Beaumont Fin Auth CFD 93-1 IA -7A1 2015A STBs

2. Beaumont Fin Auth CFD 93-1 IA -19A 2015B STBs

3. Beaumont Fin Auth CFD 93-1 IA -18 2015C STBs

4. Beaumont Fin Auth CFD 93-1 IA -16 2015D STBs

5. City of Beaumont CFD 93-1 IA -8B 2017A STBs

6. City of Beaumont CFD 93-1 IA -17C 2018 STBs

7. City of Beaumont CFD 93-1 IA -8C 2018A STBs

8. City of Beaumont CFD 93-1 IA -8D 2018A STBs

9. City of Beaumont CFD 2016-1 2019 STBs

10. City of Beaumont CFD 2016-2 2019 STBs
It has been a pleasure working with the City over the years, and we look forward to serving as the City's underwriter on the Wastewater Bonds and CFD Bonds. As detailed below, by hiring Stifel, the City is getting the #1 ranked underwriter in all the areas that matter most and a familiar and experienced team at a competitive cost.

Stifel is the #1 Ranked Underwriting Firm. Stifel is the leading underwriter in all the areas most relevant to the City's proposed refunding bonds. Below is an overview of our industry and sector leading experience since 2018:
• Overall Experience in California: Stifel has sole or senior managed 1,145 financings (22% market share) totaling over $32 billion in par value, making us the #1 underwriter by number of issues. In fact, we have underwritten nearly 2x the number of deals as our closest competitor. • Water and Wastewater Experience in California: Stifel is the leading underwriter of California water and wastewater financings, having underwritten 57 financings totaling over $1 billion in par value.

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STIFEL
Public Finance
■ CFD Experience in California: Stifel has sole or senior managed 343 financings (52% market share) totaling nearly $5.8 billion in par value, making us the #1 underwriter by number of issues and par. In fact, we have underwritten nearly 2x the number of deals as our closest competitor. ■ Overall Experience in Riverside County: Stifel has been the dominant underwriting firm in Riverside County, having underwritten 215 financings (45% market share) totaling $3.4 billion in par value.

Overall Experience in CA Overall Experience in Water/Wastewater (# of Bonds Underwritten 2018-2024) (# of Bonds Underwritten 2018-2024) 1,400
1,200
1,000
800
600
400
200
o
400
350
300
250
200
150
100
50 o
1,145
576
530 529
332
Stifel Raymond Piper RBC Morgan
James Stanley
Overall Experience in CA CFDs
(# of Bonds Underwritten 2018-2024)
343
181
45 34
26 Stifel Piper Hilltop RBC Raymond
James
60 57
50 40
30 20
10 0
250
200
150
100
50 0
52 51
42 39
Stifel Morgan BofA JP Morgan Wells Fargo
Stanley
Overall Experience in Riverside County
(# of Bonds Underwritten 2018-2024)
215
85 28
18 14
Stifel Piper Raymond RBC Goldman
James
Source: SDC, excludes notes, full to bookrunner (equal if joint).

Familiar and Experienced Team. Stifel's banking team will continue to be led by Tom Jacob, who has served as lead banker on the City's last 9 financings. Tom is a Managing Director based on the firm's Los Angeles office and has more than 17 years of experience in public finance. Tom will be assisted by Jordan Keny-Guyer and one of the firm's three California -based underwriters. Attached asAppendixA are resumes for Tom and Jordan. Please also consider:
■ As noted above, our banking team has been monitoring the outstanding bonds since May 2024, providing staff with regular updates on the municipal market and on estimated savings. ■ Our banking team has extensive experience with water and wastewater financings in southern California, having assisted the Crescenta Valley Water District, the cities of Oxnard, Poway, and Corona, and the Banning Utility Authority, to name a few, since 2018. Some of our banking team's recent CFD clients in Riverside County include the cities of Desert Hot Springs, Lake Elsinore, and Menifee, and special districts including Eastern Municipal Water District, and Jurupa Community Services District, and the schools districts of Lake Elsinore USD, Hemet USD, and Menifee USD.
■ Tom is currently serving as lead banker on three water and wastewater financings for the Jurupa Community Services District and La Canada Irrigation District, and on seven CFD financings for Eastern Municipal Water District, Jurupa Community Services District, the City of Lake Elsinore, Hemet Unified School District, and San Jacinto Unified School District.
■ Our underwriting team leads more California municipal underwritings than any other firm and collectively make commitments for the firm on over $6 billion each year, supported by sales teams focusing, respectively, on municipal institutional investors, taxable investors and individual `retail' investors.

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STIFEL
Public Finance
Competitive Fees. Assuming the City pursue the refinancings as previously described, we have proposed competitive fees relative to comparable transactions that have recently priced. ■ Comparable Wastewater Financing and Stifel Fee Proposal (Wastewater Bonds): Over the past two years, there has been only one long-term water and wastewater financing between $50 and $100 million with an `A+' rating (rating on the City's outstanding bonds) and 'AA' insurance in California: the $72.5 million El Dorado Irrigation District Refunding Revenue Bonds, Series 2022A. The underwriter's discount for this transaction was $2.85/bond (which translates to an amount $204,008). Stifel is proposing a not to exceed fee of $2.47/bond (which translates to an amount $169,368). Should the City receive an underlying rating upgrade, we would be happy to revisit our fee proposal in an amount acceptable to both staff and the municipal advisor. ■ Comparable Pooled CFD Financings and Stifel Fee Proposal (CFD Bonds): Since May 2024, there have been nine pooled CFD financings, as illustrated in the table below. The par amount of these financings have ranged from $7.2 million (Poway USD) to $66.4 million Ourupa Community Services District) and the credit ratings from 'A' (both Menifee Union School District and Hemet Unified School District) to 'AA' (San Marcos Unified School District). With ten outstanding bonds expected to be refinanced by the CFD Bonds, an expected rating in the 'A' category (similar to the City's recent pooled CFD refinancings), and an estimated par amount of $68.6 million based on current market conditions, Stifel would like to propose a not to exceed fee of $6.00/bond (translates to an amount of $429,000), which is lower than all the comparable transactions listed below. Please note that if the par amount of the transaction falls below $30.0 million, we would like to propose increasing our fee by $0.75/bond, to $6.75/bond, an amount still below all comparable transactions.

Fee Surve of Com ' arable Financin • s to Su .. ort Stifel Fee Pro • osal for CFD Bonds Issuer
CFD Bonds
Refinanced
Sale
Date
Underlyin •
S&P Rating
Par
Amount
Underwriting
Fee ($/Bond)
San Marcos USD
lurupa CSD
City of San Marcos
Menifee Union SD
Poway USD
Poway USD
Riverside USD
Temecula Valley USD
Hemet USD
3 13
17 3
2 2
9 5
4 15 -May -24
29 -May -24
30 -May -24
6 -Aug -24
28 -Aug -24
28 -Aug -24
9 -Oct -24
22 -Oct -24
31 -Oct -24
AA
AA-
A+
A
AA-
AA-
AA-
AA -
A
$20,315,000
66,365,000
17,595,000
22,690,000
10, 560,000
7,235,000
24,915,000
42,110,000
27,015,000
$7.00

7.00 7.54

7.50 10.00

9.75 9.50

7.00 9.65
Weighted Average of Comparable Pooled CFD Financings $7.86 We value our relationship with the City and will continue our commitment to provide unparalled customer service with superior execution. Thank you for your consideration of Stifel's proposal and please let me know if you have any questions. Please note our disclosures in Appendices B (assuming Stifel is hired as underwriter) and C.

Sincerely,
/
Thomas Jacob, Managing Director
Direct: (213) 443-5010 I Cell: (213) 434-3067 I Email: [email protected]

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Appendix A: Team Resumes
Core Public Finance Investment Banking Team
Tom Jacob has over 17 years of public finance experience. During his career, he Tom Jacob
Managing Director
has assisted municipal bond issuers with the sale of over $8 billion in par value, including over 170 CFD financings totaling $2.3 billion and 25 water and Lead Banker
wastewater financings totaling $260 million. Tom is active throughout Riverside County with recent clients including the City and many of the City's neighbors.

Select City CFD Clients: Select Utility Clients:
• Lake Elsinore • La Canada Irrigation District
• Menifee • City of Oxnard
• Murrieta • Crescenta Valley Water District
• Eastern Municipal WD • Jurupa CSD
2121 Avenue of the Stars, Suite 2150
Los Angeles CA, 90067
• Jurupa CSD • City of Banning
(213) 443-5010
[email protected]
Education: BA — UC Santa Cruz; MBA — University of Southern California FINRA Licenses: Series 50, 52, & 63
Jordan joined Stifel's public finance department in 2016 and has over 8 years of Jordan Keny-Guyer
el)., Lead
municipal finance experience. Jordan has performed analytical, credit, financial Vice President
Support Banker
modeling and execution support on a number of different financing structures, including special tax and water/waste water bonds throughout the west -coast.

Jordan has worked on the City's CFD program since 2019. Other recent clients include:

Select City CFD Clients: Select Utility Clients:
• Lake Elsinore • La Canada Irrigation District
• Menifee • Crescenta Valley Water
• Murrieta • City of Poway
• Rancho Mirage • Fallbrook Public Utility District
2121 Avenue of the Stars, Suite 2150
Los Angeles CA, 90067
• Corona • City of Santa Monica
(213) 443-5233
Education: BA — Colorado College
guyerina stifel.com
FINRA Licenses: Series 50, 52, & 63

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Appendix B: Required Disclosures Subject to Approval by the City

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Disclosures by Stifel Pursuant to MSRB Rule G-17
Beaumont Public Improvement Authority Local Agency Revenue Refunding Bonds, Series 2025 (Outstanding Special Tax Bonds Issued by Community Facilities Districts within the City) We are writing to provide you, the Beaumont Public Improvement Authority (the "Issuer"), with certain disclosures relating to the Local Agency Revenue Refunding Bonds, Series 2025 (the "Bonds"), as required by Municipal Securities Rulemaking Board ("MSRB") Rule G-17 as set forth in MSRB Notice 2019-20 (Nov. 8, 2019).1 The Issuer has engaged Stifel, Nicolaus & Company, Incorporated ("Stifel") to serve as an underwriter, and not as a financial advisor or municipal advisor, in connection with the issuance of the Bonds. We understand that the engagement would have a termination date of June 30, 2025.

As part of our underwriting services we may provide advice concerning the structure, timing, terms, and other similar matters concerning the issuance of the Bonds.

The following G-17 conflict of interest disclosures are broken down into three types, including: 1) dealer -specific conflicts of interest disclosures (if applicable); 2) transaction -specific disclosures (if applicable); and 3) standard disclosures.

I. Dealer -Specific Conflicts of Interest Disclosures
Stifel has identified the following actual or potential' material conflicts of interest:

Stifel and its affiliates comprise a full service financial institution engaged in activities which may include sales and trading, commercial and investment banking, advisory, investment management, investment research, principal investment, hedging, market making, brokerage and other financial and non -financial activities and services. Stifel and its affiliates may have provided, and may in the future provide, a variety of these services to the Issuer and to persons and entities with relationships with the Issuer, for which they received or will receive customary fees and expenses.

In the ordinary course of these business activities, Stifel and its affiliates may purchase, sell or hold a broad array of investments and actively trade securities, derivatives, loans and other financial instruments for their own account and for the accounts of their customers, and such investment and trading activities may involve or relate to assets, securities and/or instruments of the Issuer (directly, as collateral securing other obligations or otherwise) and/or persons and entities with relationships with the Issuer.

Stifel and its affiliates may also communicate independent investment recommendations, market color or trading ideas and/or publish or express independent research views in respect of such assets, securities or instruments and may at any time hold, or recommend to clients that they should acquire such assets, securities and instruments. Such investment and securities activities may involve securities and instruments of the Issuer. 1 Revised Interpretive Notice Concerning the Application of MSRB Rule G-17 to Underwriters of Municipal Securities (effective Mar. 31, 2021).
z When we refer to potential material conflicts throughout this letter, we refer to ones that are reasonably likely to mature into actual material conflicts during the course of the transaction, which is the standard required by MSRB Rule G-17.

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II. Transaction -Specific Disclosures
• Disclosures Concerning Complex Municipal Securities Financing:
o Since we have not recommended a "complex municipal securities financing" to the Issuer, additional disclosures regarding the financing structure for the Bonds are not required under MSRB Rule G-17.

III. Standard Disclosures
• Disclosures Concerning the Underwriter's Role:
o MSRB Rule G-17 requires an underwriter to deal fairly at all times with both issuers and investors. o The underwriter's primary role is to purchase the Bonds with a view to distribution in an arm's -length commercial transaction with the Issuer. The underwriters have financial and other interests that differ from those of the Issuer.
o Unlike a municipal advisor, an underwriter does not have a fiduciary duty to the Issuer under the federal securities laws and is, therefore, not required by federal law to act in the best interests of the Issuer without regard to its own financial or other interests. o The Issuer may choose to engage the services of a municipal advisor with a fiduciary obligation to represent the Issuer's interest in the transaction.
o The underwriters have a duty to purchase the securities from the Issuer at a fair and reasonable price, but must balance that duty with their duty to sell the securities to investors at prices that are fair and reasonable.
o The underwriters will review the official statement for the securities, if any, in accordance with, and a part of, their respective responsibilities to investors under the federal securities laws, as applied to the facts and circumstances of this transaction.3
• Disclosures Concerning the Underwriter's Compensation:
o The underwriters will be compensated by a fee and/or an underwriting discount that will be set forth in the bond purchase agreement to be negotiated and entered into in connection with the issuance of the Bonds. Payment or receipt of the underwriting fee or discount will be contingent on the closing of the transaction and the amount of the fee or discount may be based, in whole or in part, on a percentage of the principal amount of the Bonds. While this form of compensation is customary in the municipal securities market, it presents a conflict of interest since the underwriters may have an incentive to recommend to the Issuer a transaction that is unnecessary or to recommend that the size of the transaction be larger than is necessary.

If you or any other Issuer officials have any questions or concerns about these disclosures, please make those questions or concerns known immediately to the undersigned. In addition, you should consult with the Issuer's 3 Under federal securities law, an issuer of securities has the primary responsibility for disclosure to investors. The review of the official statement by the underwriters is solely for purposes of satisfying the underwriter's obligations under the federal securities laws and such review should not be construed by an issuer as a guarantee of the accuracy or completeness of the information in the official statement.

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own financial and/or municipal, legal, accounting, tax and other advisors, as applicable, to the extent you deem appropriate.

Please note that nothing in this letter should be viewed as a commitment by the underwriters to purchase or sell all the Bonds and any such commitment will only exist upon the execution of any bond purchase agreement or similar agreement and then only in accordance with the terms and conditions thereof.

It is our understanding that you have the authority to bind the Issuer by contract with us, and that you are not a party to any disclosed conflict of interest relating to the subject transaction. If our understanding is incorrect, please notify the undersigned immediately.

Depending on the structure of the transaction that the Issuer decides to pursue, or if additional actual or potential material conflicts are identified, we may be required to send you additional disclosures regarding the material financial characteristics and risks of such transaction and/or describing those conflicts. At that time, we also will seek your acknowledgement of receipt of any such additional disclosures.

We look forward to working with you, the Issuer, in connection with the issuance of the Bonds. Thank you.

Sincerely,
Tom Jacob
Managing Director
Stifel, Nicolaus & Company, Incorporated

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Disclosures by Stifel Pursuant to MSRB Rule G-17
Beaumont Public Improvement Authority 2025 Wastewater Revenue Bonds (Beaumont Public Improvement Authority Wastewater Revenue Bonds, Series 2018A) We are writing to provide you, the Beaumont Public Improvement Authority (the "Issuer"), with certain disclosures relating to the 2025 Wastewater Revenue Refunding Bonds (the "Bonds"), as required by Municipal Securities Rulemaking Board ("MSRB") Rule G-17 as set forth in MSRB Notice 2019-20 (Nov. 8, 2019).4 The Issuer has engaged Stifel, Nicolaus & Company, Incorporated ("Stifel") to serve as an underwriter, and not as a financial advisor or municipal advisor, in connection with the issuance of the Bonds. We understand that the engagement would have a termination date of June 30, 2025.

As part of our underwriting services we may provide advice concerning the structure, timing, terms, and other similar matters concerning the issuance of the Bonds.

I. Dealer -Specific Conflicts of Interest Disclosures
Stifel has identified the following actual or potentials material conflicts of interest:

Stifel and its affiliates may also communicate independent investment recommendations, market color or trading ideas and/or publish or express independent research views in respect of such assets, securities or instruments and may at any time hold, or recommend to clients that they should acquire such assets, securities and instruments. Such investment and securities activities may involve securities and instruments of the Issuer. 4 Revised Interpretive Notice Concerning the Application of MSRB Rule G-17 to Underwriters of Municipal Securities (effective Mar. 31, 2021).
5 When we refer to potential material conflicts throughout this letter, we refer to ones that are reasonably likely to mature into actual material conflicts during the course of the transaction, which is the standard required by MSRB Rule G-17.

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III. Standard Disclosures
• Disclosures Concerning the Underwriter's Role:
o MSRB Rule G-17 requires an underwriter to deal fairly at all times with both issuers and investors. o The underwriter's primary role is to purchase the Bonds with a view to distribution in an arm's -length commercial transaction with the Issuer. The underwriters have financial and other interests that differ from those of the Issuer.
o Unlike a municipal advisor, an underwriter does not have a fiduciary duty to the Issuer under the federal securities laws and is, therefore, not required by federal law to act in the best interests of the Issuer without regard to its own financial or other interests. o The Issuer may choose to engage the services of a municipal advisor with a fiduciary obligation to represent the Issuer's interest in the transaction.
o The underwriters have a duty to purchase the securities from the Issuer at a fair and reasonable price, but must balance that duty with their duty to sell the securities to investors at prices that are fair and reasonable.
o The underwriters will review the official statement for the securities, if any, in accordance with, and a part of, their respective responsibilities to investors under the federal securities laws, as applied to the facts and circumstances of this transaction.6
• Disclosures Concerning the Underwriter's Compensation:
o The underwriters will be compensated by a fee and/or an underwriting discount that will be set forth in the bond purchase agreement to be negotiated and entered into in connection with the issuance of the Bonds. Payment or receipt of the underwriting fee or discount will be contingent on the closing of the transaction and the amount of the fee or discount may be based, in whole or in part, on a percentage of the principal amount of the Bonds. While this form of compensation is customary in the municipal securities market, it presents a conflict of interest since the underwriters may have an incentive to recommend to the Issuer a transaction that is unnecessary or to recommend that the size of the transaction be larger than is necessary.

If you or any other Issuer officials have any questions or concerns about these disclosures, please make those questions or concerns known immediately to the undersigned. In addition, you should consult with the Issuer's 6 Under federal securities law, an issuer of securities has the primary responsibility for disclosure to investors. The review of the official statement by the underwriters is solely for purposes of satisfying the underwriter's obligations under the federal securities laws and such review should not be construed by an issuer as a guarantee of the accuracy or completeness of the information in the official statement.

Page 1471 of 1595 ends

own financial and/or municipal, legal, accounting, tax and other advisors, as applicable, to the extent you deem appropriate.

We look forward to working with you, the Issuer, in connection with the issuance of the Bonds. Thank you.

Sincerely,
r-),ffli-
Tom Jacob
Managing Director
Stifel, Nicolaus & Company, Incorporated

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Appendix C: Additional Disclosures
Stifel, Nicolaus & Company, Incorporated ("Stifel") has prepared the attached materials. Such material consists of factual or general information (as defined in the SEC's Municipal Advisor Rule with current effective date of implementation of July 1, 2014). Stifel is not hereby providing a municipal entity or obligated person with any advice or making any recommendation as to action concerning the structure, timing or terms of any issuance of municipal securities or municipal financial products. To the extent that Stifel provides any alternatives, options, calculations or examples in the attached information, such information is not intended to express any view that the borrower could achieve particular results in any municipal securities transaction, and those alternatives, options, calculations or examples do not constitute a recommendation that any municipal issuer or obligated person should effect any municipal securities transaction. Stifel is not acting as your municipal advisor and does not owe a fiduciary duty pursuant to Section 15B of the Exchange Act to the municipal entity or obligated party with respect to the information and materials contained in this communication.

Stifel is providing information and is declaring to the proposed municipal issuer and any obligated person that it has done so within the regulatory framework of MSRB Rule G-23 as an underwriter (by definition also including the role of placement agent) and not as a financial advisor, as defined therein, with respect to the referenced proposed issuance of municipal securities. The primary role of Stifel, as an underwriter, is to purchase securities for resale to investors in an arm's- length commercial transaction. Serving in the role of underwriter, Stifel has financial and other interests that differ from those of the issuer. The issuer should consult with its own financial and/or municipal, legal, accounting, tax and other advisors, as applicable, to the extent it deems appropriate.

These materials have been prepared by Stifel for the client or potential client to whom such materials are directly addressed and delivered for discussion purposes only. All terms and conditions are subject to further discussion and negotiation. Stifel does not express any view as to whether financing options presented in these materials are achievable or will be available at the time of any contemplated transaction. These materials do not constitute an offer or solicitation to sell or purchase any securities and are not a commitment by Stifel to provide or arrange any financing for any transaction or to purchase any security in connection therewith and may not relied upon as an indication that such an offer will be provided in the future. Where indicated, this presentation may contain information derived from sources other than Stifel. While we believe such information to be accurate and complete, Stifel does not guarantee the accuracy of this information. This material is based on information currently available to Stifel or its sources and is subject to change without notice. Stifel does not provide accounting, tax or legal advice; however, you should be aware that any proposed indicative transaction could have accounting, tax, legal or other implications that should be discussed with your advisors and /or counsel as you deem appropriate.

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o
Stradling
Statement of Qualifications to provide Community Facilities District Formation and Bond and Disclosure Counsel Services to

CITY OF BEAUMONT, CALIFORNIA
February 26, 2025
Contac
Brian P. Forbath
[email protected]
T: +1 949 725 4193
Stradli
660 N
Newp
I
r
• ■

Page 1474 of 1595 ends

th L
e 1600
2660

EXECUTIVE SUMMARY
Firm History and Profile. Stradling Yocca Carlson & Rauth LLP (the "Firm" or "Stradling") was formed in 1975 and has had a municipal finance practice since 1978. With approximately 116 attorneys, the Firm's primary areas of specialization are public finance, public law, tax, general corporate law, corporate securities, real estate, bankruptcy, and litigation. Public finance has remained an important part of the Firm's practice for more than four decades. Forty members of the Firm practice in the areas of public finance and related areas of public law, making the Firm the second largest group of municipal finance attorneys in California. Nineteen partners, three of counsel, eight associates and ten paralegals devote substantially all of their efforts to the Firm's municipal finance practice. One partner and one associate of the Firm restrict their practice exclusively to the tax aspects of public finance, advising clients on the structuring of transactions and representing clients in the event that a transaction is audited by the Internal Revenue Service (the "IRS"). The Firm's public law attorneys devote their time primarily to the representation of the interests of public agencies, including cities, counties, school districts, municipal utilities, and special districts of various kinds throughout California, and to the supplying of legal services in connection with the financings of such agencies. The Firm also serves as City Attorney to various California cities, such as the City of Lancaster. The Firm's public finance practice serves hundreds of clients.

The Firm maintains offices in Newport Beach, San Diego, San Francisco, Sacramento, Westlake Village, Santa Barbara, Las Vegas, Reno, Denver, Seattle and Austin. Public finance has remained an important part of the Firm's practice for more than four decades.

Background and Public Finance Experience. The Firm has had the privilege to serve as counsel to the City on numerous engagements related to public finance dating back to 2015.

The Firm has an incredible level of experience with California Mello -Roos bonds and wastewater revenue bonds, particularly the lead attorney we propose to represent the City, Brian Forbath. Mr. Forbath is one of the most experienced municipal finance attorneys in the entire State, having worked on hundreds of CFD formations and thousands of bond issues.

Moreover, we have one of the most experienced tax attorneys in the entire country, Carol Lew, who has served as tax counsel on all of the tax-exempt bond issues for which the Firm has served as Bond Counsel for the last 25 years.

STAFFING RESOURCES
We propose that Brian Forbath, a senior Partner in the Firm's Public Finance Department and President of the Firm's Management Committee, would serve as lead counsel on City's financings, and would be supported by the full experience of the Firm. In particular, Mr. Forbath would be supported on all City engagements by Reed Glyer, a senior partner in the Firm's Public Finance Department. Mr. Forbath would expect to be involved in all of the key negotiations, conference calls and meetings for the engagement. Carol Lew, a senior Partner in the Firm and Chair of the Firm's Public Finance Tax Department, would be responsible for any tax analysis. Additionally, Nicolas Yeager, a senior Associate, would assist Mr. Forbath and Mr. Glyer as appropriate to provide the highest level of service to the City. Resumes for the individuals introduced above are attached as Appendix A, respectively. 1

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Brian Forbath. Brian Forbath is a senior Partner in the Firm and President of the Firm's Management Committee. Brian Forbath works exclusively in the public finance area and has extensive experience in land -secured, lease revenue, general obligation, general fund, utility revenue, and tax increment financings and derivative transactions. Mr. Forbath is a 1998 graduate of Loyola Law School and attended the University of California, Santa Barbara as an undergraduate. Mr. Forbath has been a lecturer on federal securities laws at the National Association of Bond Lawyers Workshop in Chicago and was a member of the National Association of Bond Lawyers' task force on drafting Disclosure Roles of Counsel in State and Local Government Securities Offerings (3rd Edition, 2008). Mr. Forbath is a frequent lecturer for the California Debt and Investment Advisory Commission. Mr. Forbath has over twenty-five years' experience acting as Bond Counsel, Disclosure Counsel and Underwriter's Counsel in all types of municipal finance transactions.

Reed Glyer. Reed Glyer is a Partner of the Firm and has practiced public finance exclusively since 2011. Mr. Glyer has worked as Bond Counsel and Disclosure Counsel on numerous public financings, and specializes in county, city and general fund financings.

Within the past 3 years, Mr. Glyer has served as Bond Counsel, Disclosure Counsel and/or Underwriter's Counsel on over 100 financings, including more than 50 for counties and cities.

Mr. Glyer has also served as lead Underwriter's Counsel for the Statewide Bond Opportunities for Land Development (BOLD) program since 2019, the largest former of community facilities districts in the State, and in such capacity he was involved in the formation and bond issuance of dozens of city -based community facilities districts over the past 5 years. He is a 2007 graduate of USC Law School and graduated from Cal Poly, San Luis Obispo in 2004.

Carol L. Lew. Carol Lew is nationally recognized with respect to tax issues relating to municipal finance. Ms. Lew is the head of the Firm's Public Finance Tax Department and a partner in the Firm. Ms. Lew has been practicing as a public finance tax attorney for over 30 years following her graduation from Hastings College of Law. Ms. Lew recently served a three-year term on the Internal Revenue Service Advisory Council (IRSAC), an advisory body of the IRS that reports directly to the IRS Commissioner on a broad range of tax questions under the Internal Revenue Code. Ms. Lew has previously served as President and President -Elect of the National Association of Bond Lawyers and has served as a member of the Steering Committee of the National Association of Bond Lawyers Bond Attorneys' Workshop. Ms. Lew served as Editor -in -Chief of the National Association of Bond Lawyers' Federal Taxation of Municipal Bonds. Ms. Lew has also served as Chair of the American Bar Association, Taxation Section, Tax -Exempt Financing Committee and has been a member of the Executive Committee of the State Bar of California, Taxation Section, and the Technical Advisory Committee of the California Debt and Investment Advisory Commission. She received her J.D. from Hastings College of the Law.
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Nicolas Yeager. Nicolas Yeager is a senior associate of the Firm. Mr. Yeager joined the Firm in 2018. He was admitted to practice law in the State of California in 2015.

Mr. Yeager has served as bond, disclosure, and Underwriter's Counsel on numerous land - secured financings and other financings. Prior to joining the Firm, he practiced general municipal law for almost 3 years. Mr. Yeager received his bachelor's degree from the University of California, Santa Barbara in 2011 and his law degree from the University of California, Irvine School of Law in 2015.

EXPERIENCE AND TECHNICAL COMPETENCE
The Firm is a perennial leader in public finance in California. For more than 15 years, the Firm has consistently been ranked among the top Bond Counsel firms in the State, both in terms of dollar volume and number of transactions. Over the past five years, Stradling's California -based attorneys have completed more than 870 transactions as Bond Counsel to cities, counties, school districts, joint powers authorities, special districts and other public agencies, representing over $50.5 billion in principal amount of municipal securities. In 2024, according to Thomson Reuters, we ranked 2nd in California as Bond Counsel based upon par amount of bonds issued, and 1st in California as Disclosure Counsel based upon number of issuances (2nd based upon par amount of bonds issued). The Firm is also highly ranked nationally. In 2024, the Firm was ranked 2nd in Disclosure Counsel in the Nation, acting in such capacity in 146 transactions totaling over $18.7 billion. In 2024, the Firm was ranked the 9th Bond Counsel firm in the Nation with 159 transactions totaling over $11.8 billion. The Firm's national rankings are even more impressive considering that the Firm acts as Bond Counsel and Disclosure Counsel in just a handful of western states, whereas most of the Firm's competitors operate nationally.

The depth and breadth of our experience as Bond Counsel is underscored by our recent history, as set forth below.

Stradling Yocca Carlson & Rauth
California Bond Counsel Rankings
(By Dollar Volume)
Year
Dollar Volume
(in Millions)
CA Rankings as
Bond Counsel
2024
2023
2022
2021
2020
$11,059
8,472
6,621
14,414
11,861
2 2
2 2
2 Source: Thomson Reuters
Our disclosure counsel rankings for California, set forth below, highlight that we are also a consistent leading firm for the delivery of disclosure counsel services to California issuers. The following table sets forth our California disclosure counsel rankings for calendar years 2020 through 2024.
3

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Stradling Yocca Carlson & Rauth
California Disclosure Counsel Rankings
(By Dollar Volume)
Year
Dollar Volume
(in Millions)
CA Rankings as
Disclosure Counsel
2024
2023
2022
2021
2020
$ 12,534
10,291
8,880
16,088
14,355
(1) Ranked No. 1 by number of deals.

Source: Thomson Reuters.

In each year since 2015, Stradling participated in more bond issuances in California as Bond Counsel, Disclosure Counsel or Underwriter's Counsel than any other law firm. The Firm believes that being involved in so many transactions provides the Firm with a greater breadth of experience and practical "know how" than any of the Firm's peers.

Land Secured Financings. The Firm is an undisputed leader in land -secured financings, including, in particular, Mello -Roos community facilities district financings. Since 1983, one year after the Mello -Roos Act was enacted, we have acted as Bond Counsel, Disclosure Counsel and Underwriter's Counsel on more than 1,000 Mello -Roos financings totaling in excess of $15 billion. Beginning in 1987, we worked with the County of Orange to establish 15 community facilities districts that participated in a regional transportation financing program known as the "Foothill Circulation Phasing Plan." These 15 community facilities districts built primarily all of the backbone infrastructure required to develop South Orange County, which is now inhabited by over 1 million people.

We pioneered Mello -Roos financing structures utilizing senior and subordinate debt and various forms of credit enhancement, as well as pooled financings taking advantage of the Marks -Roos Local Bond Pooling Act. As an example, in June, 1994, we completed a $219,000,000 financing for the South Orange County Public Financing Authority. The innovation in this financing was the utilization of senior lien bonds and junior lien bonds which were secured by special tax revenues payable by a community facilities district. The senior lien bonds were rated and insured by MBIA. The subordinate bonds were sold on an unrated basis. The senior/subordinate structure resulted in significant special tax savings that were passed on to the taxpayers within the district. Since 1994, we have replicated this structure for a number of clients, and it has become a common financing tool used statewide for Mello - Roos financings. Our extensive experience in Mello -Roos financings has allowed us to develop an expertise in analyzing the issues that are relevant for these types of financings, such as coverage ratios, reserve fund structurings, allocations between senior and subordinate bonds and flow of fund mechanics that are important to the rating agencies and bond insurers.

We believe our ongoing prominence as Bond and Disclosure Counsel on dozens of CFD financings throughout the State in just the past few years gives us a breadth and depth 4

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of experience unmatched by any other firm in California. Since January 1, 2018, the Firm has served as Bond Counsel on 119 Mello -Roos financings totaling nearly $2 billion and as Disclosure Counsel on 140 Mello -Roos financings totaling over $1.7 billion. The Firm has also served as Underwriter's Counsel on 104 Mello -Roos financings totaling over $2.3 billion.

The Firm is a leader in representing California municipalities in land secured financings of every size and scope, including for large master -planned communities. In particular, Mr. Forbath and Mr. Glyer, the two senior Partners of the Firm we propose to represent the City in its CFD formations and land secured financings, are among the most experienced municipal land secured finance attorneys in California. Mr. Forbath and Mr. Glyer represent many of the municipalities in the Inland Empire in CFD formations and land secured financings, including for the cities of Chino, Corona, Fontana, Indio, Lake Elsinore, Menifee, Murrieta, Norco, Riverside and Wildomar, the Counties of Riverside and San Bernardino, and Eastern Municipal Water District, just to name a few.

Utility Financing Experience. The Firm's experience in the water/wastewater utility area is very extensive and the Firm believes that it represents more water/wastewater utilities than any other law firm in California. The Firm (Mr. Forbath in particular) has served as Bond and/or Disclosure Counsel to numerous cities on water and wastewater utility financings, including Beaumont, Bellflower, El Monte, Hercules, Lomita, Malibu, Monrovia, Monterey Park, Norco, Norwalk, Oceanside, Ontario, Pomona, Riverside, Santa Monica and Vista, and utilities providing wastewater services, including the cities of East Bay Municipal Utilities District, Eastern Municipal Water District, Inland Empire Utilities Agency, Montecito Sanitary District, Napa Sanitation District, San Francisco Public Utilities Commission, Santa Margarita Water District, Santa Rosa Regional Resources Authority, Silicon Valley Clean Water, South Coast Water District and Union Sanitary District. Since January 1, 2019, the Firm has acted as Bond Counsel on approximately 170 water, wastewater, and other enterprise revenue financings totaling over $9.2 billion and as Disclosure Counsel on approximately 138 water, wastewater, and other enterprise revenue financings totaling nearly $12 billion.

Mr. Forbath is an expert on the challenges that arise in water/wastewater utility financings, including structuring rate covenants and additional debt tests in a manner that provides sufficient security to investors and satisfies rating agencies while giving issuers flexibility to meet their capital needs, the impact of the recent statewide drought on enterprises and rate structures and the distinctions in pledge language between water service revenue bonds and wastewater collection system revenue bonds. We also have extensive experience with State Revolving Fund ("SRF") loans and WIFIA loans.

Experience with City of Beaumont. The Firm and Mr. Forbath have represented the City as Bond and Disclosure Counsel since October 2015. Accordingly, the Firm and Mr. Forbath have gained significant experience related to the City and all of its CFDs through working with staff and the City Council on a number of important transactions and events.

During that time, Mr. Forbath provided counsel to the City throughout a series of significant events affecting the City. Mr. Forbath led the Firm's team in successfully navigating the City through the SEC investigation of the Beaumont Financing Authority including the forensic audit of all CFD bond proceeds. Through the Firm's counsel and oversight, the City was able to account for the expenditure of the CFD bond proceeds and achieve a favorable settlement with the SEC. The Firm and Mr. Forbath also provided a critical liaison to the Riverside 5

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District Attorney's office investigation of former City employees. The Firm and Mr. Forbath also advised the City in navigating the potential pros and cons of municipal bankruptcy and ultimately the City's settlement with WRCOG and assisted in WRCOG's pursuit of remedies against former City employees and consultants as part of the settlement. The Firm and Mr. Forbath also assisted the City in settling ongoing disputes with Pardee Homes related to unreimbursed CFD expenditures and negotiated the Settlement Agreement that resolved all outstanding issues with Pardee Homes at that time. At City Council's direction, the Firm and Mr. Forbath helped refund for savings (and in many cases eliminating the 2% special tax escalator) the vast majority of the City's existing CFDs, saving City residents tens of millions of dollars by reducing special taxes. Additionally, the Firm and Mr. Forbath assisted the City in successfully financing the City's wastewater treatment plant and attended numerous meetings with the State Water Resources Control Board Regional Office in support thereof.

PROPOSED METHOD TO ACCOMPLISH WORK
Stradling's Approach to Bond Counsel Services. Stradling stresses a team approach on public finance matters in order to most effectively serve our clients and to assure senior level "hands-on" coverage is always available. That means the team proposed for the City is comprised of the people that will actually provide you service, handle your work and respond to any questions that you may have during, or after, the transaction. We pride ourselves on our availability and responsiveness in addressing our clients' needs and issues.

The Firm strives to be user-friendly and not create work or undue administrative burden for our clients.

When engaged as Bond Counsel, at the onset of a financing, we would first collaborate with the appropriate members of the administrative team of the City to gain a firm grasp of your strategic objectives, which would include objectives beyond the immediate financing, key transactional considerations and to cover tax, if necessary, and state law diligence. Once the Firm has the necessary information regarding the structure and the objectives of the City with respect to the financing, the attorneys working on the matter would commence the preparation of the legal documents necessary to approve the transaction and issue the bonds.

During this phase, we would develop the proposed legal provisions discussed above and, with the approval of the City, incorporate them into the legal documents.

During the course of the financing, the Firm expects to be intimately involved with the City's key staff, its municipal advisor, its underwriters and the Underwriters' Counsel. The Firm believes that Bond Counsel is the primary protector of the interests of the issuer in a financing, and is committed to carefully reviewing the bond purchase contract and similar agreements that the City may be requested to execute in connection with the financing in order to ensure that there is nothing unlawful or atypical being requested of the City. In addition, the Firm will work with the underwriters and the City's municipal advisor in connection with the review and preparation of materials that may be presented to the City governing body, rating agencies or potential investors.

In connection with the closing of the transaction, the Firm would prepare the necessary closing documentation and opinions and would coordinate the execution and delivery of such documents. The Firm would also set up a virtual closing room for the efficient review of documents by members of the financing team. Once the transaction has closed, our office would promptly assemble a transcript and provide the City with a downloadable file containing PDF versions of the final documents.
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The Firm's Approach to Disclosure Counsel Services. The Firm's first task as Disclosure Counsel would be to deliver to the City the most complete first draft of an offering document possible in order to minimize the significant burden on staff that an offering document presents. As Disclosure Counsel, the Firm would review audited financial statements and other publicly available information relevant to the financing in order to provide a first draft of an offering document to staff with as few blank items as possible. The Firm would not simply input updates and edits when received from the City, but would ask follow-up and clarifying questions in order to gain a deeper understanding of the City's "story" in order to convey it effectively to potential investors. The Firm would expect an offering document to be developed over several drafts before it is ready for review by outside parties such as underwriters.

As Disclosure Counsel, our work entails not only incorporating comments received, but also understanding the operations of the City; gathering information, taking the initiative to review outside documents and perform other diligence; and perhaps most importantly, to ask questions, suggest changes, provide examples and engage in productive dialogue, without primarily relying on just email communications. We try to do as much of this necessary back -and -forth in the "background" prior to the first distribution of the documents to the working group in order to produce the drafts as effectively and efficiently as possible.

A similar approach is used to address comments received from the working group. At the closing of the transaction, the Firm would deliver a 10b-5 negative assurance letter to the City and the underwriters.

The Firm regularly provides securities disclosure training presentations to its clients and would recommend providing one in connection with the City's upcoming financing. The Firm believes that such presentations are very helpful in providing an overall context to public agency staff who are responsible for providing information to be included in offering documents. Topics covered in the Firm's disclosure training presentations include an overview of relevant federal securities law, the "materiality" standard, differences between corporate and municipal securities disclosure requirements, appropriate internal procedures governing disclosure, the applicability of disclosure requirements in different contexts (new offerings, annual reports and other circumstances where a public agency is "speaking to the market") and amendments to Rule 15c2-12. In such presentations, the Firm also describes situations in which disclosure by public agencies was determined to be inadequate and the SEC settlements or pronouncements that followed.

The Firm does not view its Disclosure Counsel engagement as concluded upon the closing of any single bond financing. The Firm, as it does currently, would continue to advise the City on an ongoing basis as to continuing disclosure requirements and compliance (including considering whether "material" event notices are necessary or appropriate), and advising the City on proposed changes in federal securities law and recent SEC enforcement actions.

In acting as Disclosure Counsel, we strive to be user-friendly and perform our duties in a responsive and professional manner, without creating work or undue administrative burden for our clients. Above all else, we understand that our top priority must be service to our clients who are dependent on our support in accessing the capital markets. 7

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The Firm's Experience in Tax Matters. We believe that the quality of our tax advice separates us from many of the other firms providing bond counsel services in California. The Firm's Public Finance Tax Department is respected on a national level. This respect is due in large part to Carol Lew, Chair of our Public Finance Tax Department, and her work over the years with the National Association of Bond Lawyers, the ABA Committee for Taxation, and the IRSAC. Ms. Lew regularly attends meetings at the national level to review newly proposed legislation and has an excellent relationship with individual IRS agents, enabling her to obtain informal guidance on an expedited basis.

The Firm's Public Finance Tax Department has regular experience representing public agencies with respect to IRS audits of municipal bonds, and the Firm is well aware of the potential for liability to bondholders and other adverse market consequences if the tax-exempt status of a bond issuance is lost. The Firm works hard to negotiate and clarify liabilities and responsibilities among transaction participants (including underwriters and financial advisors) when a public agency is audited. The Firm directly handles IRS information requests, which can be voluminous, and represents public agencies before the IRS and with respect to appeals and negotiating the terms of settlement or voluntary closing agreements with the IRS.

The Firm understands that IRS audits are rarely limited to the matters that are the initial subject of an investigation.

CONCLUSION
Thank you very much for inviting us to submit our Statement of Qualifications (SOQ) to provide Bond and Disclosure Counsel services to City. Should you have any questions, or require any additional information with respect to our SOQ, please do not hesitate to contact me. I am an official authorized to contractually bind the Firm. We look forward to hearing from you soon.

Sincerely,

STRADLING YOCCA CARLSON & RAUTH LLP
Brian P. Forbath
President/Partner
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Stradling
APPENDIX A: ATTORNEY RESUMES
A-1

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Stradl ng
Education
Loyola Law School, J.D.

University of California, Santa Barbara,
B.A.

Areas of Focus
Bond & Underwriter Counsel
Disclosure Counsel
Land Secured Financing
Bar Admissions
California
Brian Forbath
Partner
Newport Beach
[email protected]
D: 949 725 4193
The financing of public works through the issuance of municipal bonds is, under normal circumstances, a highly complex undertaking with many moving parts. But when the complexity reaches another level entirely — when the legal issues, debt structure, or sheer size of the transaction are particularly daunting — sophisticated issuers turn to Brian Forbath for innovative solutions.

Brian's long record of success representing major issuers in California — cities, counties, school districts, and other government entities — puts him in the forefront of lawyers devoted exclusively to public finance. As such, he serves as Bond Counsel, Disclosure Counsel, and Underwriter's counsel in a wide range of public finance transactions. Clients rely on his strategic acumen to determine the optimal financial structure and to identify the best available revenue streams for every sort of public infrastructure project.

With a thorough grounding in federal securities law, Brian is an acknowledged leader in all manner of infrastructure funding, including land secured financing, utility revenue, general fund lease revenue, and the creative use of derivatives. Increasingly, he is called upon to assist in the financing of municipal sports facilities — stadiums and arenas — through a combination of public and private funding.

Representative Experience
The funding of a new stadium for the Oakland A's baseball team. Brian has represented the Oakland A's on bond related matters in their dual goals of acquiring the Oakland Coliseum Complex for redevelopment and the acquisition and development of a new stadium at Howard Terminal adjacent to the San Francisco Bay.

Inglewood Football Stadium for the Los Angeles Rams and Chargers.

Brian and his team have assisted the Kroenke Group in analyzing and developing public financing options for the development of the Rams and Chargers new stadium and surrounding development. Brian previously assisted the Chargers on their attempts to develop stadium alternatives in the cities of Carson and San Diego.

Delta Conveyance Financing Authority. Brian has been named disclosure counsel to the Delta Conveyance Financing Authority, the entity driving the proposed $11 billion financing of a tunnel underneath the Sacramento River delta.

Tahoe Douglas Visitor Authority Event Center. Brian and his team assisted the TDVA in drafting and passing legislation for a new tourism surcharge on transient occupancies in Douglas County to assist in financing a 6,000 seat event center to revitalize occupancy rates in the Casino core around Lake Tahoe. The surcharge was approved by the Nevada legislature in 2019. The complex financing will utilize several sources of revenue including the surcharge, TDVA's share of transient occupancy taxes and tax increment revenues.

Toll Roads. Brian and his team serve as bond and disclosure counsel to the Foothill/Eastern Transportation Corridor Agency and the South San Joaquin Transportation Corridor Agency on several billion dollars of outstanding toll revenue bonds.

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Stradl ng
Education
California Polytechnic State University,
San Luis Obispo, History, B.A.

University of Southern California Gould
School of Law, J.D.

Areas of Focus
Bond & Underwriter Counsel
Disclosure Counsel
K-14 School Financing
Public Finance
Bar Admissions
California
Reed T.C. Glyer
Partner
Newport Beach
[email protected]
T: 949 725 4027
When public entities need an effective financing solution to raise money for infrastructure, they choose Reed Glyer. Reed is an experienced lawyer with a long history of representing cities, counties, school districts, redevelopment successor agencies, water districts and joint power agencies in issuing tax-exempt and taxable debt. Whether he acts as bond counsel, disclosure counsel or underwriter's counsel, he works tirelessly on every detail to ensure that his clients get the most out of each transaction.

Because he practices exclusively in the area of public finance, Reed has a firm understanding of the federal and state securities laws that come into play when a public entity issues debt and he knows the multitude of challenges that public entities face when structuring a debt issuance. He is proactive in solving problems before they arise and quick to facilitate communication and collaboration with issuers and members of the financing team in order to ensure that a deal is done correctly and on time. In even the most complicated and document intensive deals, Reed remains committed to reviewing every detail in order to help his clients understand their legal and financial obligations.

Special Honors and Program Speaker
Presented at the 2018 Annual Conference of the North American Bond Lawyers' Association
Recognized as a Rising Star in Public Finance (2016, 2017) Top Attorney in Public Finance — Orange Coast Magazine (2017) Top Municipal Law Attorney — Pasadena Magazine (2010)
USC Law School's Review of Law/Social Justice, Editor, 2006- 2007

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Stradl ng
Education
University of California, Hastings College
of the Law, J.D., magna cum laude
California State University, Northridge,
B.A., summa cum laude
Areas of Focus
Tax
Bond & Underwriter Disclosure
Disclosure Counsel
Public Finance
Bar Admissions
California
Carol L. Lew
Partner
Newport Beach
[email protected]
D: 949 725 4237
For state and local governments and nonprofit organizations raising money for public infrastructure and other projects, Carol Lew's proven tax advice is a critical piece of the complex financing puzzle. With more than 30 years of federal tax law experience, Carol is nationally recognized for her ability to apply her in-depth knowledge of the Internal Revenue Code to tax -advantaged debt financings. The complicated tax analyses she undertakes keep issuers and buyers in compliance with all federal tax laws and help communities thrive.

Carol's sought-after tax advice helps states, highway authorities, water districts, housing authorities, hospitals, school districts and municipal agencies and nonprofits finance development projects through a variety of sources, including tax - advantaged and taxable bonds, and public/private partnerships. Many clients also rely on Carol for post -issuance compliance advice. If the IRS audits a bond issuer or buyer, she steps in to resolve any outstanding tax issues quickly. Carol also assists with voluntary closing agreements and private letter ruling requests.

When clients work with Carol, they get the full benefit of her cutting -edge insight and long-standing leadership in the organizations helping shape today's U.S. tax laws. She currently serves on the IRS IRSAC advisory committee that provides advice directly to the IRS Commissioner on a broad range of tax matters. Carol has also served as President of the National Association of Bond Lawyers and as Chair of The American Bar Association Taxation Section's Tax -Exempt Financing Committee.

Representative Experience
Tax counsel for the State Public Works Board of the State of California with respect to their lease revenue bond program which has raised $3.4 billion in funding for major public improvements across the State of California.

Tax counsel for the City of San Diego in connection with their financing program of numerous city projects.

Tax counsel to San Joaquin Hills Transportation Corridor Agency in connection with the $1.4 billion financing of its $2.2 billion in outstanding debt issued to fund construction of the 73 Toll Road.

Tax counsel to the Foothill/Eastern Transportation Corridor Agency in its sale of $2.3 billion in revenue bonds; Carol coordinated one of the most complex tax analyses for a municipal bond offering in recent years.

Tax counsel to the Rancho California Municipal Water District in bond issuance and post -issuance matters related to its revenue bond financing program including both tax-exempt and taxable obligations.

Tax counsel to the City of Chula Vista relating to various tax-exempt and taxable bonds for the city's public infrastructure.

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Stradling
Education
University of California, Irvine, School of
Law, J.D.

University of California, Santa Barbara,
B.A.

Areas of Focus
Public Finance
Bond & Underwriter Counsel
Public Law
Bar Admissions
California
Nicolas G. Yeager
Associate
Newport Beach
[email protected]
D: 949 725 4181
Nicolas G. Yeager is an associate in Stradling's public finance practice group.

Nick represents Stradling's clients in a variety of public finance transactions, including as Bond Counsel, Disclosure Counsel, and counsel to underwriters. As part of the Stradling team consistently recognized as one of California's leading public finance counsel, Nick has seen nearly all of the various financing structures available to municipal bond issuers, including:
• Revenue bonds;
• Lease revenue bonds and certificates of participation; • Mello -Roos special tax bonds;
• General obligation bonds;
• Pension obligation bonds.

Prior to joining Stradling in 2018, Nick was an associate at a municipal law firm where he represented cities and other public agencies in all aspects of municipal law. During law school, Nick clerked at the Office of the Orange County Counsel and the Orange County District Attorney's Office.

Having worked almost exclusively with public agencies throughout his career, Nick understands the unique needs and processes of California municipalities.

Representative Experience
Nick served on the team representing the Chula Vista Bayfront Facilities Financing Authority as Bond and Disclosure Counsel in connection with the successful issuance of $382 million of Revenue Bonds to finance a portion of the Gaylord Pacific Resort Hotel and Convention Center and related public improvements.

Nick recently was part of the team that represented the San Bernardino County Transportation Authority as Bond and Disclosure Counsel in connection with the issuance of its San Bernardino County Transportation Authority Sales Tax Revenue Refunding Bonds (Limited Tax Bonds), 2022 Series A.

A-5

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Stradling�
Brian P. Forbath
949 725 4193
[email protected]
February 26, 2025
Elizabeth Gibbs
City Manager
City of Beaumont
550 E. 6t'' Street
Beaumont, CA 92223
Dear Ms. Gibbs:

Stradling Yocca Carlson & Rauth LLP
660 Newport Center Drive, Suite 1600
Newport Beach, CA 92660-6422
949 725 4000
stradlinglaw.com
We thank you for the opportunity to continue our relationship with the City of Beaumont (the "City") as bond and disclosure counsel with respect to the proposed 2025 refunding of various community facilities districts (the "CFD Refundings") in one or more pooled refundings and the issuance of bonds to refund the Beaumont Public Improvement Authority's Wastewater Revenue Bonds, Series 2018A (the "Wastewater Bonds"). The CFD Refundings may consist of up to 17 community facilities districts and Improvement Areas (each a "CFD") depending on the economics and may consist of multiple pooled financings (each a "Pooled Financing"). This letter is a supplement to the our letter dated February 26, 2025, including the Terms of Retention (the "Master Terms of Retention") set forth therein (collectively, the "Master Engagement Letter"). Except as expressly provided in this letter, the terms of the Master Engagement Letter will apply to the transaction and our Firm's representation in connection therewith contemplated by this letter as if the same were herein set forth at length. Unless otherwise confirmed in writing, the terms of the Master Engagement Letter, as supplemented by this letter, including the attached Terms of Retention, will govern our bond and disclosure counsel representation of you.

We are attaching our normal Terms of Retention, which is an integral part of our retention agreement. If this letter, including the attached Terms of Retention, accurately reflects your understanding of our relationship, please acknowledge your approval and acceptance of these terms by signing and returning this letter to me. Copies of each are enclosed for your files. I would be pleased to answer any questions you might have.

Very truly yours,

STRADLING YOCCA CARLSON & RAUTH LLP
Brian P. Forbath

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Elizabeth Gibbs, City Manager
City of Beaumont
February 26, 2025

Page 2 ends

The undersigned hereby agrees that the terms and conditions in this letter and the accompanying Terms of Retention shall apply to services rendered by Stradling Yocca Carlson & Rauth LLP.

CITY OF BEAUMONT
By:

City Manager
4922-4078-2880/029999-0001

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TERMS OF RETENTION
OF

STRADLING YOCCA CARLSON & RAUTH LLP

TERMS OF RETENTION
OF

STRADLING YOCCA CARLSON & RAUTH LLP

1. Master Terms of Retention set forth in Master Engagement Letter. Except as expressly provided in this letter, the terms of the Master Terms of Retention will apply to the transaction and our Firm's representation contemplated by this letter as if the same were herein set forth at length.

2. Fees and Costs. Stradling Yocca Carlson & Rauth LLP (the "Firm") is compensated for its services based primarily on the value of the services and the time spent performing them.

Such compensation may include the time spent on client conferences, travel, research, drafting documents, and other activities. The amount of fees charged on a statement is determined by the hours expended by the different attorneys and other professional personnel involved and the applicable rates.

Bond and Disclosure counsel services in connection with the issuance of the Wastewater Bonds will be done on a fixed fee contingent basis for a fixed fee of $85,000. Such fee will be paid contingent on the successful closing of the Wastewater Bonds. Bond and Disclosure Counsel services with respect to the CFD Refundings will be done on a fixed fee contingent basis. Due to the uncertainty as to the number of CFD's to be included in the CFD Refundings and the number of Pooled Financings to be issued only a range of fees can be given at this time. We would propose a range of fees from $75,000 to $250,000. The exact fee(s) will be agreed to by the parties pursuant to a supplement to the Master Engagement Letter when the proposed structure of the CFD Refundings is known. Work in connection with the City's ongoing matters other than the CFD Refundings and the Wastewater Bonds will be charged on an hourly rate basis. A schedule of the hourly rates applicable to attorneys expected to work on City matters is attached as Exhibit A. The hourly rates provided in Exhibit A are the discounted rates the Firm charges for public agencies on financing matters. Such rates may change from time -to -time but no increases in excess of 2% per annum shall be implemented without the written consent of the City Manager. Fees and Costs not related to the CFD Refundings or the Wastewater Bonds are capped at $125,000 for CFD matters unless the Terms of Retention are otherwise amended by the City and the Firm.

3. Client Communication. You hereby designate Elizabeth Gibbs, City Manager, to act on your behalf for this matter, and you authorize us to communicate with, and receive directions from, that person and any other person that you may designate in the future. 4922-4078-2880/029999-0001

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Terms of Retention
February 26, 2025

Page 2 ends

4. Authority to Sign. The person signing this letter on behalf of the City represents that he or she has the full right and authority to do so, and to fully commit and bind the City to this engagement letter.

5. Firm Not Providing Financial Advice. The Firm is not a registered municipal advisor and does not provide financial advisory services or otherwise provide financial advice to Firm clients. We understand that your registered municipal advisor, Urban Futures Inc., will be providing financial advisory services to you with respect to the ongoing bond matters.

6. Miscellaneous. The Master Engagement Letter, as supplemented by this letter, sets forth the entire agreement between you and the Firm, and there is no other or additional understanding between you and the Firm on these subjects. This agreement supersedes any prior agreements or representations, written or oral, between you and the Firm on these subjects. Any modification or amendment to this agreement must be in a writing signed by you and the Firm. This agreement shall be governed by California law without reference to its conflict of law principles. If any provision of this agreement is found to be invalid or unenforceable, that provision shall be deemed modified or removed so that it is valid and enforceable to the fullest extent of the law, and the other provisions of this agreement shall be unimpaired.

7. Primary Attorneys. The primary attorneys with responsibility for this representation will be Brian Forbath, Reed Glyer, Carol Lew and Nicolas Yeager. The parties agree that the Firm is being retained based on the unique skill, experience, and expertise of Brian Forbath, Reed Glyer, Carol Lew and Nicolas Yeager and no change will be made in the primary attorneys without the prior, written consent of the City. The Firm will not substitute another primary attorney without the prior, reasonable, approval of the City.
4922-4078-2880/029999-0001

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2025 DISCOUNTED RATES

PARTNERS

BRIAN FORBATH

CAROL LEW

REED GLYER
OTHERS

ASSOCIATES

NICOLAS YEAGER
OTHERS
2025 RATE
$680.00
$680.00
$630.00
$630.00
2025 RATE
$425.00
$385.00
TALL PARALEGALS ARE AT $195.00/HOUR
4922-4078-2880/029999-0001

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Stradli ng 5.(1
Brian P. Forbath
949 725 4193
[email protected]
February 26, 2025
Elizabeth Gibbs
City Manager
City of Beaumont
550 E. 6th Street
Beaumont, CA 92223
Dear Ms. Gibbs:

Stradling Yocca Carlson & Rauth LLP
660 Newport Center Drive, Suite 1600
Newport Beach, CA 92660-6422
949 725 4000
stradlinglaw.com
We thank you for the opportunity to continue our relationship with the City of Beaumont (the "City") and the opportunity to continue serving as bond and disclosure counsel to the City Unless otherwise confirmed in writing, the terms of this letter and the enclosed Terms of Retention will govern our representation of the City.

We are attaching our normal Terms of Retention, which is an integral part of our retention agreement. If this letter, including the attached Terms of Retention, accurately reflects your understanding of our relationship, please acknowledge your approval and acceptance of these terms by signing and returning this letter to me. I would be pleased to answer any questions you might have.

Enclosure
Very truly yours,

STRADLING YOCCA CARLSON & RAUTH LLP
Brian P. Forbath

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Elizabeth Gibbs, City Manager
City of Beaumont
February 26, 2025

Page 2 ends

The undersigned hereby agrees that the terms and conditions in this letter and the accompanying attached Terms of Retention shall apply to services rendered by Stradling Yocca Carlson & Rauth LLP.

CITY OF BEAUMONT
By:

City Manager
4917-6663-0688/029999-0001

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TERMS OF RETENTION
OF

STRADLING YOCCA CARLSON & RAUTH LLP

1. Fees and Costs. Stradling Yocca Carlson & Rauth LLP (the "Firm") is compensated for its services based primarily on the value of the services and the time spent performing them.

Notwithstanding the foregoing, in the event that the City of Beaumont (the "City") determines to issue bonds, notes or other obligations, we will agree to negotiate a written fixed fee arrangement as is traditional for bond and disclosure counsel matters. Such arrangement may be memorialized as a supplement to this letter. Such fixed fees would be payable contingent upon closing of the transaction and the City would be under no obligation to pay the fees to the Firm if either (i) the bonds, notes or other obligations are not issued or (ii) the Firm and the City are unable to reach an agreement regarding the fixed fee arrangement.

Similarly, if the City engages the Firm in connection with the City's ongoing matters, the fee arrangement for such representation will be provided in a supplement to this letter.

The firm also charges for various costs such as copying, telephone charges, computerized legal research, word processing and/or other computer time, overtime costs, messenger services, travel, filing fees and other costs. Bills for some costs are passed on directly, such as bills for certified shorthand reporters, technical consultants, and other professional fees. In the event that the City and the Firm agree to a fixed fee for a transaction, expenses for such transaction will be included in the fixed fee set forth in the related supplement to this letter.

2. Termination by Us. We reserve the absolute right to withdraw from representing you, upon 30 days written notification, if, among other things, you fail to honor the terms of our agreement, you fail to cooperate fully or follow our advice on a material matter, or any fact or circumstance occurs that would, in our view, render our continuing representation unlawful or unethical. If we elect to withdraw, you will take all steps necessary to free us of any obligation to perform further services, including the execution of any documents necessary to complete our withdrawal, and we will be entitled to be paid at the time of withdrawal for all services rendered and costs and expenses paid or incurred on your behalf. If necessary in connection with litigation, we would request leave of court to withdraw.

3. Termination by City. We understand that we serve at the pleasure of the City and this Terms of Retention may be terminated by the City at any time, upon 10 days written notification with or without cause.

4. Date of Termination. Our representation of you will be considered terminated at the earlier of (i) your termination of our representation, (ii) our withdrawal from our representation of you, or (iii) the completion of our substantive work for you or (iv) June 30, 2025. 4917-6663-0688/029999-0001

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Elizabeth Gibbs, City Manager
City of Beaumont
February 26, 2025

Page 2 ends

5. Related Activities. If any claim or action is brought against us or any personnel or agents of the firm based on your negligence or misconduct, or if we are asked to testify as a result of our representation of you or must defend the confidentiality of your communications in any proceeding, you agree to pay us for any resulting fees, costs, or damages, including our time, even if our representation of you has ended.

6. No Guarantee of Outcome. The Firm will provide its services consistent with the level and quality of expertise expected of a nationally recognized firm specializing in securities law and the transactions contemplated by this agreement. We do not and cannot guarantee any outcome in a matter.

7. Insurance. We hereby advise you that this firm maintains professional errors and omissions insurance coverage applicable to the services to be rendered to you. Evidence of such insurance will be provided upon request.

8. Client. This firm's client for the purpose of our representation is only the person or entity identified in the letter accompanying these Terms of Retention. Unless expressly agreed, we are not undertaking the representation of any related or affiliated person or entity, nor any parent, brother -sister, subsidiary, or affiliated corporation or entity, nor any of your or their officers, directors, agents, or employees. The City acknowledges that from time to time the Firm may advise the Marina Joint Powers Financing Authority on financing transactions and related matters.

9. Client File and Retention. For each matter the Firm maintains a file in which the Firm places certain documents and items, including original documents, that are reasonably necessary to the Firm's representation in the matter. The Firm currently keeps each file for seven years after a matter concludes. The file belongs to the client and, subject to any protective order or non -disclosure agreement, the client may request to take possession of it once the matter concludes.

Should all or any portion of the file become the subject of a subpoena, discovery request or other disclosure obligation ("Legal Process") while in the Firm's possession, including after the matter concludes, you agree to pay the Firm's then -prevailing hourly rates and costs that the Firm incurs in connection with the Legal Process.

10. Payment Notwithstanding Dispute. In the event of any dispute that relates to our entitlement to any payment from you, all undisputed amounts shall be paid by you. Any amounts in any client trust account held on your behalf, sufficient to pay the disputed amounts, shall continue to be held in such trust account until the final disposition of the dispute.

11. Arbitration. We appreciate the opportunity to serve as your attorneys and anticipate a productive and harmonious relationship. If you should feel for any reason that there is a problem with the services we have performed or with our charges, we encourage you to bring that to our attention immediately. If we perceive a problem with your representation, we likewise will endeavor to discuss it with you. Most problems should be rectified by communication and discussion.

However, a dispute might arise between us which could not be resolved by negotiation. We believe that such attorney -client disputes are most satisfactorily resolved through final and binding 4917-6663-0688/029999-0001

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Elizabeth Gibbs, City Manager
City of Beaumont
February 26, 2025

Page 2 ends

arbitration rather than by litigation. Both the United States Supreme Court and the California Supreme Court have endorsed arbitration as an accepted and favored method of resolving disputes, because it is economical and expeditious.

In arbitration, there is no right to a trial by jury and the arbitrator's legal and factual determinations are generally not subject to appellate review. Arbitration rules of evidence and procedure are often less formal and less rigid than the rules which apply in Court. Arbitration usually results in a decision much more quickly than proceedings in Court, and the attorneys' fees and other costs incurred by both sides may be substantially less. You are free to discuss the advisability of arbitration with us, or with your own independent counsel or any of your other advisors, and to ask any questions which you may have.

By signing this Terms of Retention, we agree that, in the event of any dispute or claim arising out of or relating to our engagement, our relationship, our charges, or our services (including but not limited to disputes or claims regarding our charges, professional malpractice, errors or omissions, breach of contract, breach of fiduciary duty, fraud, or violation of any statute), SUCH DISPUTE OR

CLAIM SHALL BE RESOLVED BY SUBMISSION TO FINAL AND BINDING ARBITRATION IN RIVERSIDE COUNTY, CALIFORNIA, BEFORE A RETIRED JUDGE OR JUSTICE. BY

AGREEING TO ARBITRATE, YOU WAIVE ANY RIGHT YOU HAVE TO A COURT OR JURY TRIAL. Venue with regard to any ancillary proceedings arising out of such dispute or claim shall also be in Riverside County. If we are unable to mutually agree on a retired judge or justice, then each side will name one retired judge or justice and the two named persons will select a neutral judge or justice who will act as the sole arbitrator. The fees of the arbitrator will be paid initially equally by both the Firm and you. However, the arbitrator shall have the right to order either party to pay all fees and costs as part of his award.

In arbitration, we shall both be entitled to conduct discovery in accordance with the provisions of the California Code of Civil Procedure, but either of us may request that the arbitrator limit the amount or scope of such discovery and, in determining whether to do so, the arbitrator shall balance the need for the discovery against the parties' mutual desire to resolve disputes expeditiously and inexpensively.

Under California law, you have the right, if you desire, to request arbitration of any fee dispute before an arbitrator or panel of arbitrators selected by a local bar association or the State Bar ("Bar Arbitration") and a trial de novo in court if dissatisfied with the result. If you do request a Bar Arbitration, the law provides that evidence of any claim of malpractice or professional misconduct is admissible only concerning the fees or costs in dispute and that the Bar Arbitrators shall not award any affirmative relief in the form of damages, offset or otherwise on account of such claim. By signing this Terms of Retention, you agree that if a Bar Arbitration is conducted, that Bar Arbitration or any trial de novo in Court thereafter shall determine only the issue of the amount of fees properly chargeable to you, if any, and that such Bar Arbitration or trial de novo in Court thereafter shall have no effect on the provisions set forth above which require arbitration before a retired judge or justice of any claims for affirmative relief based on alleged professional malpractice, errors or omissions, 4917-6663-0688/029999-0001

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Elizabeth Gibbs, City Manager
City of Beaumont
February 26, 2025

Page 2 ends

breach of conduct, breach of fiduciary duty, fraud or violation of any statute. Any such claims shall be solely determined in an arbitration proceeding by a retired judge or justice without regard to the result of any Bar Arbitration or trial de novo thereafter.

12. Other Clients. As a law firm with many diverse clients and practice areas, the Firm seeks to retain the ability to accept unrelated matters for all of our clients. The Firm may thus request your informed written consent in the event the Firm seeks to represent any other client in any future matter that is not substantially related to the applicable public finance matter of the City and does not involve material confidential information the Firm obtained while representing the City.

Such matters could arise during the Firm's representation of you on public finance matters as contemplated by this letter. You may determine to consent or not consent to such request and should feel free to consult your general counsel or other counsel of your choice before deciding whether to grant any consent should it be requested.

The Firm represents various investment banks and underwriters from time -to -time on transactions for public agencies other than the City. In the event that the City determines to issue bonds, notes or other obligations, the Firm will not represent any investment bank or underwriter on any such transaction of the City.

The Firm represents various public agencies, including cities, water agencies, school districts, and other agencies in Riverside County and throughout California, as bond finance and/or disclosure counsel and on other financing matters. In the event that the City determines to issue bonds, notes or other obligations, the Firm does not expect to represent any such agency in connection with the City's transaction; however, in the supplemental letter relating to the specific transaction of the City, the Firm would provide a statement to the effect that the Firm is not representing another water or similar agency in connection with such transaction.

13. Electronic Communication and Storage Technology. The Firm uses cell phones, email, wireless networks, cloud -based platforms, and other technology to communicate with others and to transmit or store documents and information. Such technology helps the Firm provide efficient and convenient legal services, but may pose confidentiality and security risks. By signing this letter agreement, you consent to the Firm's use of all such technology in connection with this engagement.

14. Processing Client Personal Information. In connection with our engagement, you may be required to disclose to the Firm, or the Firm may obtain on your behalf, personal information relating to individuals that the Firm does not otherwise collect for the Firm's own commercial or business purposes ("Client Personal Information"). For example, materials that you provide to the Firm for purposes of due diligence may contain Client Personal Information relating to third parties. You hereby acknowledge, agree and require that the Firm only collect, retain, use, disclose, or otherwise process Client Personal Information as your "service provider" or "data processor," as defined in the California Consumer Privacy Act of 2018 or other data privacy laws, as applicable (collectively, "Data Privacy Laws"), or pursuant to any exception that may apply under Data Privacy Laws regarding the attorney -client relationship. The Firm will not sell Client Personal 4917-6663-0688/029999-0001

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Elizabeth Gibbs, City Manager
City of Beaumont
February 26, 2025

Page 2 ends

Information. The Firm will not collect, retain, use, disclose or otherwise process Client Personal Information for any purpose other than for the purpose of performing services to you pursuant to this engagement letter, unless applicable law requires us to do otherwise. The Firm will not collect, retain, use, disclose, or otherwise process Client Personal Information outside of the Firm's direct relationship with you, unless applicable law requires the Firm to do otherwise. The Firm certifies that the Firm understand these restrictions and will comply with them. These restrictions are not intended to reduce or replace our obligations under applicable rules of professional conduct, including but not limited to the Firm's obligation of confidentiality.

15. Publicity. You consent to the Firm's use of your name and logo (if applicable) on our web site and in our marketing materials.

16. Client Communication. You hereby designate Elizabeth Gibbs, City Manager, to act on your behalf for this matter, and you authorize us to communicate with, and receive directions from, that person and any other person that you may designate in the future.

17. City to Sign. The person signing this letter on behalf of the City represents that he or she has the full right and authority to do so, and to fully commit and bind the City to this engagement letter.

18. Firm Not Providing Financial Advice. The Firm is not a registered municipal advisor and does not provide financial advisory services or otherwise provide financial advice to Firm clients.

19. Miscellaneous. This letter sets forth the entire agreement between you and the Firm, and there is no other or additional understanding between you and the Firm on these subjects. This agreement supersedes any prior agreements or representations, written or oral, between you and the Firm on these subjects. Any modification or amendment to this agreement must be in a writing signed by you and the Firm. This agreement shall be governed by California law without reference to its conflict of law principles. If any provision of this agreement is found to be invalid or unenforceable, that provision shall be deemed modified or removed so that it is valid and enforceable to the fullest extent of the law, and the other provisions of this agreement shall be unimpaired.

20. Primary Attorneys. The primary attorneys with responsibility for this representation will be Brian Forbath, Reed Glyer, Carol Lew and Nicolas Yeager. The parties agree that the Firm is being retained based on the unique skill, experience, and expertise of Brian Forbath, Reed Glyer, Carol Lew and Nicolas Yeager and no change will be made in the primary attorneys without the prior, written consent of the City. The Firm will not substitute another primary attorney without the prior, reasonable, approval of the City.
4917-6663-0688/029999-0001

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BAUME ONT
-C A L I F O R N I A
Staff Report
TO: City Council
FROM: Jennifer Ustation, Finance Director
DATE March 4, 2025
SUBJECT: Approve Budget Adjustment and Purchase Order Increase for Hinderliter de Llamas & Associates Sales Tax Audit Invoice
Description Approval is needed to increase the budget and purchase order to pay sales tax audit invoice for Hinderliter de Llamas & Associates.

Background and Analysis:

On February 4, 2025, it was reported to the City Council through the mid -year budget report, that the City had received a one-time audit correction payment from a fulfillment center in the amount of $6.2m. This audit was initiated by petition to the California Department of Tax and Fee Administration (CDTFA) by Hinderliter de Llamas & Associates (HDL) from a work order that was signed on April 7, 2022. The audit determined that a portion of local tax was misallocated to other jurisdictions and required redistribution resulting in a one-time payment to the City of Beaumont.

The City contracts with HDL to complete compliance audits, analysis and management support, revenue administration, and revenue forecasting for sales and property tax. As a part of HDL's agreement (Attachment D), any recovery received from the outcome of HDL's audits will incur a 15% fee payable to HDL. The City has received an invoice from HDL for the CDTFA audit recovery along with a group of other recoveries received for a total recovery of $6,400,771 with 15% ($960,115.60) fee to HDL. The contract with HDL is from 1998 and is currently being reviewed with the vendor and staff to bring to current terms. HDL is the primary vendor in this space who provides excellent customer service and reporting for the City.

Fiscal Impact:

The one-time recovery received for sales tax is more than enough to offset the cost of the invoice. A budget amendment to increase the sales tax revenue to offset the expenditure will be an increase in both revenue and expenditure to the General Fund in the amount of $960,115.60.

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The estimated cost to prepare this report is $195.

Recommended Action:

Approve budget amendment increasing sales tax revenue by $960,115 and Finance Department Contractual Services by $960,115.60; and,
Approve a purchase order change request in the amount of $960,115.60.

Attachments:

A. Budget Amendment
B. HDL Companies Invoice No SIN046802
C. PO Change Order
D. HDL Services Agreement

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Page 1 of 1 ends

BEAUMONT

CALIFORNIA
DATE: 2/6/2025
DEPARTMENT NAME: Finance -1225
PREPARED BY: Jennifer Ustation
Department Approval:

City Manager Approval:

City Council Approval:
*Account Number for Example only
City of Beaumont
Budget Adjustment Form
FY 2024/2025
Revenue = (Credit)
Expense = Debit
Revenue = (Credit)
Expense = Debit
Debit
(Credit)

ACCOUNT NUMBER

ACCOUNT DESCRIPTION
BUDGET

ADJUSTMENT

NEW BUDGET AMT
Explanations /Justification
100-0000-4050-0000
Sales & Use Tax
(27,385,276.00)
(960,115.00)
(28,345,391.00)
Received one-time sales tax payment from HDL audit
100-1225-7068-0000
Contractial Services
255,031.00
960,115.00
1,215,146.00
Increase Contractual Services to pay HDL audit invoice
(TOTALS
$
-
Net Effect

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HdL° Com
3anic
120 S State College Blvd, Suite 200 Brea, CA 92821

CITY OF BEAUMONT
ATTN:FINANCE DEPARTMENT
550 E. SIXTH STREET
BEAUMONT, CA 92223
US
Purchase Order #
Invoice Period
Tax Area Code
Q3/2024
33042
(714) 879-5000 hdlcompanies.com
Invoice Number SIN046802
Invoice Date 1/27/2025
Due Date 2/27/2025
Service Charges
Contract Services - Sales Tax (January -March 2025) $975.00 Audit Services - Sales Tax
$960,115.60
Invoice Total: $961,090.60
Please Make Check Payable to: Hinderliter de Llamas & Associates Should you have any questions or inquiries, please contact the Accounting Department via email:
[email protected].
1/1

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BEAUMONT
-CALIFORNIA-

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov

PURCHASE ORDER

CHANGE REQUEST
PART I: (Completed by Requesting Department)
Requesting Department: Finance
Vendor Name: Hinderliter de Llamas
Purchase Order #: 2.t/ 2 Im+.t
Is this a regulatory cost?: no
Product or Service related to this P.O: Sales tax audit PART U. (Completed by Requesting Department
Original Purchase Order Amount: $13,519.87
O iqr' inal Account Allocation #:
100-1225-7068-0000
Current Purchase Order Amount: $13,519.87
Requested purchase order amount: $973,634.87
Amended Account Allocation #: 100-1225-7068-0000
PART III. (Completed by Requesting Department)
Explanation on why the change order is occurring (What happened that is causing this change & Why is it important for the department):

Explanation on whether the amended amount is to add additional funds to the total of P.0 or for individual line items? If individual line items, please submit a new Quote/Proposal/invoice with updated pricing.

Entire PO will be increased
What was the original budgeted amount that this Purchase order was a part of? $25,000 (Please note this was an estimated amount at time of budget)
Does the current budgeted amount cover the newly amended P.O. amount? If not, which budget will this be coming out of? No, that is why we are requesting a PO change. This will be followed with a budget adjustment as well.

Does this PO change constitute a change in the Contract? (A change in scope of work or total contract amount etc. will constitute a change in contract/Amendment): No, contract is based off of percentages of the sales tax we receive.

Requesting Deparnent Head Signature:
____, r/IL," _____------
Date: -
OV/3/73--
PART IV. (Completed by Finance Department)
Date received:

Input by:

Comments:

PART V. (Completed by Finance dept. and the A)prover)
Finance Department Head Signature:

Date:

Approver Signature: -
Date:

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AGREEMENT FOR SALES TAX AUDIT AND INFORMATION SERVICES
This Agreement is made and entered into as of the 1st day of March , 1998 by and
between the CITY OF BEAUMONT, a municipal corporation hereinafter called CITY, and HINDERLITER, DE LLAMAS AND ASSOCIATES a California Corporation, hereinafter called CONTRACTOR.

I. RECITALS
WHEREAS, sales tax revenues can be increased through: a system of continuous monitoring, identification and correction of "point of sale" allocation errors, and WHEREAS, an effective program of sales tax management will improve identification of sales tax opportunities as they relate to economic development and provide for more accurate sales tax forecasting; and
WHEREAS, City desires the combination of data entry, report preparation, and data analysis necessary to effectively manage the municipal sales tax base and recover revenues erroneously allocated to other jurisdictions and allocation pools; and WHEREAS, Contractor has the programs, equipment and personnel required to deliver the sales tax services referenced herein;
THEREFORE, City and Contractor, for the consideration hereinafter described, mutually agree as follows:
1

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II. SERVICES
The Contractor will perform the following services:

A. Allocation Audit and Recovery

1. Contractor will conduct an initial and on -going sales tax audit in order to identify and correct "point -of -sale" distribution errors and thereby generate previously unrealized sales tax income for the City. Common errors that will be monitored and corrected include: transposition errors resulting in misallocations; erroneous consolidation of multiple outlets; misreporting of "point of sale" from the wrong location; delays in reporting new outlets; misidentifying transactions as a "use tax" rather than a "sales tax," and erroneous fund transfers and adjustments.

2. Contractor will initiate contacts with the appropriate sales management and accounting officials in companies that have businesses where a probability of error exists to verify whether current tax receipts accurately reflect the local sales activity. Such contacts will be conducted in a professional and courteous manner so as to encourage local business retention and expansion.

3. Contractor shall prepare and submit to the Board of Equalization all information necessary to correct any allocation errors that are identified and shall follow-up with the individual businesses and the State Board of Equalization to ensure that all back quarter payments due the City are recovered.
2

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4. If during the course of its audit, Contractor finds businesses located in the City that are properly reporting sales tax but have the potential for modifying their operation to provide an even greater share to the City, Contractor shall so advise City and upon request, shall work with those businesses and the City to encourage such changes.

III. Optional Services
At City's option and on written request from the City Manager:

B. Sales Tax and Economic Analysis

1. Contractor will establish a special database that identifies the name, address and quarterly allocations of the major sales tax producers within the City for the most current and previous five quarters from the date of this agreement, or longer, if the City has histroical sales tax data available on computer readable magentic media that extends beyond the most recent five quarters. A second database covering the same period will be established showing total sales tax receipts for each business category identified by the Board of Equalization. These databases will be utilized to generate special reports to the City on: major sales tax producers by rank and category, analysis of sales tax activity by category, business district or redevelopment area specified by City, analysis of reporting aberrations, and per capita and outlet comparisons with state wide sales.

2. Contractor will provide up -dated reports each quarter identifying changes in sales by major outlets and by category; area growth and decline comparisons; and current graphics, tables, and top 100 listings. Quarterly aberrations due to State 3

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audits, fund transfers, and receivables along with late or double payments will be identified. Quarterly reconciliation worksheets to assist finance officer with budget forecasting will be included.

3. Contractor will additionally provide an analysis for the City or its Redevelopment Agency to share with Chambers of Commerce and other economic development interest groups that analyze City's sales tax trends by major groups, and geographic areas without disclosing confidential information.

4. Contractor will make available to City Staff the HdL DATA computer program and database containing sellers permit information for all in -city business outlets registered with the Board of Equalization. In addition, contractor shall process for City the monthly registration and allocation files provided by the Board in magnetic media. Printouts of registration changes and dollars allocated by business name and number will be provided from these files on a monthly basis.

5. Throughout the term of this agreement, Contractor shall advise and work with City and City Redevelopment Agency staff on questions related to tenant mix alternatives for maximum sales tax returns; advise City business license staff on utilization of reports to enhance business license collection efforts; provide sales tax projections on specific projects for redevelopment negotiation and city budget purposes; and provide data support to enhance the sales tax base through improved economic development efforts.
4

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IV. CONFIDENTIALITY
Section 7056 of the State of California Revenue and Taxation code specifically limits the disclosure of confidential taxpayer information contained in the records of the State Board of Equalization. This section specifies the conditions under which a City may authorize persons other than City officers and employees to examine State Sales and Use Tax records.

The following conditions specified in Section 7056 (b), (1) of the State of California Revenue and Taxation Code are hereby made part of this agreement.

A. Contractor is authorized by this Agreement to examine sales or transactions and use tax records of the Board of Equalization provided to City pursuant to contract under the Bradley -Burns Uniform Sales and Use Tax Law.

B. Contractor is required to disclose information contained in, or derived from, those sales or transactions and use tax records only to an officer or employee of the City who is authorized by resolution to examine the information.

C. Contractor is prohibited from performing consulting services for a retailer, as defined in California Revenue & Taxation Code Section 6015, during the term of this Agreement.

D. Contractor is prohibited from retaining the information contained in, or derived from those sales or transactions and use tax records, after this Agreement has expired.

Information obtained by examination of Board of Equalization records shall be used only for purposes related to collection of local sales and use tax or for other governmental functions of the City as set forth by resolution adopted pursuant to 5

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Section 7056 (b) of the Revenue and Taxation Code. The resolution shall designate the Contractor as a person, authorized to examine sales and use tax records and certify that this Agreement meets the requirements set forth above and in Section 7056 (b), (1) of the Revenue and Taxation Code.

V. PROPRIETARY INFORMATION
In performing its duties under this agreement, Contractor will produce reports, technical information and other compilations of data to City. These reports, technical information and compilations of data are derived by Contractor using methodologies, formulae, programs, techniques and other processes designed and developed by Contractor at a substantial expense. Contractor's reports, technical information, compilations of data, methodologies, formulae, programs, techniques and other processes designed and developed by Contractor shall be referred to as Proprietary Information. Contractor's Proprietary Information is not generally known by the entities with which Contractor competes.

Contractor desires to protect its Proprietary Information. Accordingly, City agrees that neither it nor any of its employees, agents, independent contractors or other persons or organizations over which it has control, will at any time during or after the term of the Agreement, directly or indirectly use any of Contractor's Proprietary Information for any purpose not associated with Contractor's activities. Further, City agrees that it nor any of its employees, agents, independent contractors or other persons or organizations over which it has control, will disseminate or disclose any of Contractor's Proprietary Information to any person or organization not connected with Contractor, without the express written consent of Contractor. The City also agrees that it will undertake all necessary and appropriate steps to maintain the proprietary nature of Contractor's Proprietary Information.
6

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VI. CONSIDERATION
A. Contractor shall be paid 15% of all new Sales and/or Use tax revenue received by the City as a result of audit and recovery work performed by Contractor (hereafter referred to as "audit fees"). New sales and/or use tax revenue shall not include any amounts determined by City or Contractor to be increment attributable to causes other than Contractor's work pursuant to this agreement. In the event that Contractor is responsible for an increase in the tax reported by businesses already properly making tax payments to the City, it shall be Contractor's responsibility to separate and support the incremental amount attributable to its efforts prior to the application of the audit fee. Said audit fees will apply to state fund transfers received for back quarter reallocations and monies received in the first eight consecutive reporting quarters following completion of the audit by Contractor and confirmation of corrections by the State Board of Equalization. Contractor shall provide City with an itemized quarterly invoice showing all formula calculations and amounts due for audit fees.

Contractor shall obtain City approval prior to beginning the work of correcting tax reporting methodology or "point of sale" for specific businesses where said payment of the percentage fee will be expected. Said approval shall be accomplished by the City Administrator or his designated representative on the Sales Tax Audit Authorization form, a copy of which is attached as "Exhibit A." City shall pay audit fees upon Contractor's submittal of evidence of State Fund Transfers and payments to City from businesses identified in the audit and approved by the City.

B. Above sum shall constitute full reimbursement to Contractor for all direct and indirect expenses incurred by Contractor in performing audits including the salaries of Contractor's employees, and travel expenses connected with contacting local and out- of-state businesses and Board of Equalization representatives. 7

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C. The City may at anytime during the contract, exercise the option to receive the additional services outlined in Section III (page 3). Contractor shall establish the sales tax and audit databases, will provide the ongoing reports and analysis and will make available the computer program and databases referenced above for a fee of $325.00 per month, invoiced quarterly (hereafter referred to as "monthly fee").

VII. CITY MATERIALS AND SUPPORT
City shall adopt a resolution in a form acceptable to the State Board of Equalization and in compliance with Section 7056 of the Revenue and Taxation Code, authorizing Contractor to examine the confidential sales tax records of City. City further agrees to provide any information or assistance that may readily be available such as business license records within the City and to provide Contractor with proper identification for contacting businesses. City further agrees to provide copies of the monthly allocation reports received for the most recent five quarters from the execution of this agreement and to continue to provide copies of future allocation reports on computer readable magnetic media until such time as all audit adjustments have been completed by the State Board of Equalization and audit fees due the Contractor have been paid.

VIII. TERMINATION
This Agreement may be terminated by either party by giving 30 days written notice to the other of such termination and specifying the effective date thereof. Upon the presentation of such notice, Contractor may continue to work through the date of termination. Upon termination as provided herein, Contractor shall be paid the value of all tax analysis and reporting work performed less payments previously made by City. In ascertaining the value of the work performed up to the date of termination, consideration shall be given to amounts due for any unpaid invoices, and to businesses identified by Contractor which 8

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make tax payments after termination of this Agreement as a result of Contractor's work.

After City receives said tax payments for such businesses, Contractor shall be paid the audit fees resulting from tax payments made by the business for back quarter reallocations and the first eight consecutive reporting quarters following completion of the audit by Contractor and confirmation of corrections by the State Board of Equalization.

Compensation for any audit work previously authorized and satisfactorily performed shall be made at the times provided in the preceding section entitled "Consideration." All documents, data, surveys and reports prepared by Contractor pursuant to this Agreement shall be considered the property of the City and upon payment for services performed by Contractor, such documents and other identified materials shall be delivered to City by Contractor.

IX. INDEPENDENT CONTRACTOR
Contractor shall perform the services hereunder as an independent contractor and shall furnish such services in his own manner and method, and under no circumstances or conditions shall any agent, servant, or employee of Contractor be considered as an employee of City.

X. NON -ASSIGNMENT
This Agreement is not assignable either in whole or in part by Contractor without the written consent of City.

XI. ATTORNEY'S FEES
9

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In the event a legal action is commenced to enforce any of the provisions of this Agreement, the prevailing party shall be entitled to recover its costs and reasonable attorney's fees.

XII. GOVERNING LAW
The laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Agreement and shall also govern the interpretation of this agreement.

XIII. INDEMNIFICATION
Contractor hereby agrees to, and shall hold City, its elective and appointive boards, officers, agents and employees, harmless from any liability for damage or claims for damage for personal injury, including death, as well as from claims for breach of confidentiality or property damage which may arise from Contractor's willful or negligent acts, errors or omissions or those of its employees or agents. Contractor agrees to and shall defend City and its elective and appointive boards, officers, agents and employees from any suits or actions at law or in equity for damages caused, or alleged to have been caused, by reason of any of the aforesaid willful or negligent acts, errors or omissions.

City hereby agrees to, and shall hold Contractor, its officers, agents and employees, harmless from any liability for damage or claims for damage for personal injury, including death, as well as from claims for breach of confidentiality or property damage which may arise from City's negligent acts, errors or omissions under this Agreement. City agrees to and shall defend Contractor and its officers, agents and employees from any suits or actions at law or in equity for damage caused, or alleged to have been caused, by reason of any of the aforesaid negligent acts, errors or omissions.
10

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XIV. NOTICE
All notices required by this Agreement shall be given to City and Contractor in writing, by personal delivery or first class mail postage prepaid, addressed as follows:

City:

CITY OF BEAUMONT
550 E. Sixth Street
Beaumont, California 92223
Contractor: HINDERLITER, DE LLAMAS & ASSOCIATES
1340 Valley Vista Drive, Suite 200
Diamond Bar, CA 91765
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the date first above written by their respective officers duly authorized in that behalf.

APPROVED AS TO FORM:

City rn Attorney
CITY:

CITY OF BEAUMONT
CONTRACTOR:

HINDERLIT R, DE LLAMAS & ASSOCIATES
A Californi Corporation
11

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SAMPLE SAMPLE

EXHIBIT A
Sales Tax Audit
Work Authorization No.

The following business or businesses, located in the City of , have been identified as having the potential for generating additional sales tax revenue to the City of . Contractor is hereby authorized to contact the given business(s) and the State Board of Equalization to verify the accuracy of the current reporting methodology and obtain the necessary documentation for the Board of Equalization, to modify allocation formulas, and to return previous misallocated revenue that may be due to City.

Contractor's compensation shall be 15% of the new sales and/or use tax revenue received by the City as a result of audit and recovery work performed by Contractor, as set forth in the Agreement between Contractor and City.

CITY OF
By:

Date

HINDERLITER, DE LLAMAS AND ASSOCIATES
By:

Date
12

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Agreement for Business License Services
City of Beaumont

AGREEMENT FOR BUSINESS LICENSE SERVICES
This agreement is made and entered into as of the (8
day of
1999, by and between the City of Beaumont, a municipal corporation, hereinafer referred to as City, and HdL Software, LLC, a California corporation, hereinafter referred to as HdL.

A. BUSINESS LICENSE SOFTWARE
HdL shall provide the City with HdL's menu driven Business License Software System which includes the following capabilities:

1. Maintenance and processinz.
a. The software will store, print and process all business license records, including annual licenses and those which may be issued on a daily, monthly, quarterly or semi-annual basis. It will process licenses for businesses based on any number of City determined factors including, but not limited to, gross receipts, number of employees, coin -operated devices, and number of vehicles. b. The software will allow easy data entry of the information contained in business license applications. Based on business type and rate tables, it will calculate fees and print licenses. It will track unrenewed licenses and print renewal notices at the end of the license period, which contain specific calculation instructions based on rate type. Delinquent notices will be generated, which include the calculation of late fees and penalties. The system will generate a journal entry for entering business license payments into the accounting records.
c. The software provides a tracking system to help the city ensure that businesses have received the appropriate approvals and permits from various city departments.

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Agreement for Business License Services
City of Beaumont
d. The software contains data fields for the entry of other business -related information, such as emergency contact name and address, alarm company or patrol company information, SIC and NAIC codes, and zoning information. e. The system will maintain business license history for active and closed businesses, including payment history. The amount of history to be stored will be determined by the City, and is dependent upon the available free space on the City's computer.
f. Users will be able to make inquiries into the data set in a variety of ways: by license number, business name, owner name, address, telephone number, vehicle license number, and key word.

2. Audit features. The business license software has the ability to cross check against other data sets available through HdL, such as telephone and professional directories.

This will assist the City in detecting unlicensed businesses. These additional features will be added as developed at no additional cost to the City.

3. Reports. A variety of reports are available, in standard format and on an ad hoc basis, including, but not limited to, reports by business name, address, or type, and mailing labels and the mandated reports to the Franchise Tax Board on magnetic media. The system will also permit the export/import of data for use on laptop computers by field inspectors. The software will allow the generation of a variety of management reports, for example, by geographic area, SIC code and/or amount of business license revenue paid.

4. Security. The system allows for user -defined levels of security and confidentiality through the use of passwords.

5. Ongoing software upgrades are provided as part of the annual maintenance fee.

The HdL Companies 2

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Agreement for Business License Services
City of Beaumont
B. MANAGEMENT SUPPORT
HdL is available to assist the City in evaluating current policies and procedures to enhance the audit, collection and enforcement of the City's business license taxes.

Examples may include the redesign of forms and/or reports, and strategies for improving communication with the business community, as well as other City departments that are involved in the business license process.

C. CONVERSION AND IMPLEMENTATION

1. HdL will convert the City's existing business license data to HdL program files. HdL will build the tables for the City (rate tables, business type tables, SIC code and NAIC tables, etc.). (If rates or business types change in the future, or new ones are created, the tables are maintainable by the City.)
The City agrees to provide current business license data information in machine readable format. If this is not possible, there may be an additional charge for manually converting the data. The work will be done on a time and material basis in consultation with the City.

2. The new data set created during this process will be verified and audited for inconsistencies between existing data and the rate tables and business type tables using HdL's computerized systems. Audit exceptions will be provided to the City for follow up.

3. The new data set and software will be installed on the City's designated standalone computer or computer network. If the City uses HdL sales and property tax programs, these programs will be integrated with the business license system at no additional cost. If the City is not a client for HdL sales and property tax programs, there will be a charge to link to another vendor's data set or for HdL to supply the data.

The HdL Companies 3

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Agreement for Business License Services
City of Beaumont

4. Training will be provided for the business license staff at the time of installation. A four hour training session is anticipated. Trained HdL staff will be available for any follow up needed, either by telephone or in person, as part of our ongoing maintenance and support.

5. User manuals will be provided.

6. Timeline for implementation of the business license software system is approximately 150 days from the date of approval of the contract.

D. HARDWARE REQUIREMENTS
The business license software will be installed on hardware supplied by the City. The HdL business license software is a Windows application requiring Microsoft Windows

3.1 or higher.

1. A PC compatible 486DX2 or Pentium system is required, with minimum of 16 MB of memory and a VGA monitor. The amount of free space required on the hard drive is dependent on the number of licenses and the extent of the history maintained, but will range typically from 35MB to 80MB.

2. In a network environment, the server must be a dedicated server (not peer to peer).

The software will operate with all currently existing network software.

3. The software is designed to work with a laser printer. An HP5 or comparable is recommended.

E. ACCEPTANCE OF THE SOFTWARE
The scheduled date of acceptance of the software by the City is when all data has been converted, all tables have been built, and licenses, renewals and reports can be generated.

The acceptance date will become the anniversary date of the Agreement.

The HdL Companies 4

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Agreement for Business License Services
City of Beaumont
F. SOFTWARE MAINTENANCE AND CUSTOMER SUPPORT
HdL will provide ongoing software upgrades and updated data from HdL's proprietary data sets and cross -directories to assist the City in its audit work. HdL' s standard maintenance and customer support includes telephone support as needed by the City, and up to eight hours of onsite support annually.

The first year maintenance and support is provided at no cost. There is an annual maintenance fee beginning the second year. See Paragraph I, "Compensation", for the fee schedule.

G. CUSTOMIZATION
The business license software is a "table driven" system and has been developed to meet almost all of the needs of a City with regard to the management, processing and reporting of business licenses. However, should the need occur, HdL is available to provide custom enhancements on a time and material basis. No work shall be performed by HdL without the prior approval of the City. See Paragraph I, "Compensation", for the fee schedule.

H. SOFTWARE LICENSE

1. License. HdL hereby provides a license to the City to use HdL' s Business License Software. The software shall be used only by the City. The City shall not sublet, duplicate, or modify said software. The software shall be returned to HdL at the time the license expires, which is the last day of the last year for which the annual maintenance fee has been paid by the City to HdL. The license granted hereunder shall not imply ownership by City of said software, rights of the City to sell said software, or rights to use said software for the benefits of others. This license is not transferable.

2. Cit1 data. HdL acknowledges that the business license data is the property of the City. At the termination of this Agreement, the business license data will be available to the City in machine readable format.

The HdL Companies 5

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Agreement for Business License Services
City of Beaumont

3. Proprietary information. As used herein, the term "proprietary information" means any information which relates to HdL's computer or data processing programs; data processing applications, routines, subroutines, techniques or systems; or business processes. City shall hold in confidence and shall not disclose to any other party any HdL proprietary information in connection with this Agreement or otherwise learned or obtained by the City in connection with this Agreement. The obligations imposed by this Paragraph shall survive any expiration or termination of this Agreement. The terms of this section shall not apply to any information which is public information.

I. COMPENSATION

1. Software license fee. The one time software license fee shall be $5,000, which is based on 730 active business licenses. 50% of this amount shall be due and payable within thirty days of the effective date of this Agreement, and the remaining 50% within thirty days of the date of acceptance of the software by the City as set forth in Paragraph E. Our first year fee is based on the number of active licenses, due primarily to the amount of conversion work required (if the City's current business license data information can not be provided in standard delimited format on magnetic tape or diskette, there will be an additional charge for manually converting the data). Manual conversion will be done on a time and material basis.

If the City wishes to convert closed or inactive licenses in addition to the active licenses referred to above, the cost is 75¢ for each closed or inactive license. If the City has the following needs, an additional fee would apply as listed:
a) HdL's business license basic system is designed as self assessing by the business.

If the City wishes to generate a renewal invoice which prebills, the cost is $2,000 plus $50 per rate code.
b) To establish Business Improvement District with separate fee tables, the cost is $2,000 per district.
c) Street Address Lookup, the cost is $3,000.

The HdL Companies 6

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Agreement for Business License Services
City of Beaumont
The first year software license fee includes conversion of existing data, redesign of City forms and letters, construction of rate types, business types, SIC code and NAIC tables, links to other data directories, user guide manuals and three (3) days of training.

Travel and lodging costs for training will be billed at actual cost.

Estimated Calendar of Events:
• A process meeting will be set up within 30 days of the date that this Agreement is signed by all parties.
• By the end of approximately 60 days, HdL should have received the City's business license data, logo, business license forms and a copy of the City's ordinances, codes, classifications, business types and rate types. • At approximately 90 days, HdL will schedule a preinstall meeting. The initial 50% payment (as set forth in Paragraph I) must be received prior to preinstall of the system.
• At approximately 120 days, HdL will schedule a final install and training meeting. • At approximately 150 days, the City will go live with a fully functional Business License System. The remaining 50% payment (as set forth in Paragraph I) must be received prior to final installation of the system.

2. Annual maintenance and customer support fee. There is no charge for the first year of maintenance and customer support. The annual maintenance fee shall begin at the second year (which includes software upgrades and support to your staff) and shall be as follows:

Standalone Installation:
or
Network Installation:
plus:

Maximum of:
$ 2,000
$ 2,000
$ 800
$10,000
for One User
for the First User
for Each Additional User
The HdL Companies 7

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Agreement for Business License Services
City of Beaumont
This maintenance fee is based on the number of users (defined as those who have access to the system to add or edit). There is no charge for those who have inquiry rights only, or for information systems staff. Maintenance fees include unlimited telephone support, up to eight (8) hours on -site support annually, upgrades to the software, updated data from HdL's proprietary data sets and cross directories, and edits to City's customized forms.

The fee will be increased each year in an amount equal to the increase in the most recently published Consumer Price Index for the surrounding statistical metropolitan area, all urban consumers. The maintenance fee will be invoiced each year by HdL and shall be due and payable within thirty days of the date of the invoice.

Travel and lodging costs will be billed at actual cost.

3. Customizing, services. The business license software is a "table driven" system and has been developed to meet almost all of the needs of a City with regard to the management, processing and reporting of business licenses. However, should the need occur, HdL is available to provide custom enhancements to the business license software on a pre -determined time and materials basis. No work shall be performed without prior written approval of the City. Fees for these services are as follows:

Principal $ 135 per hour
Principal programmer $ 135 per hour
Associate $ 85 per hour
Associate programmer $ 85 per hour
Secretarial/Administrative $ 35 per hour
Travel and lodging fees will be charged at actual cost.

4. SB 90 reimbursement. Certain costs associated with the Business License Software may be eligible for reimbursement under the provisions of SB 90. The amount of The HdL Companies 8

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Agreement for Business License Services
City of Beaumont
reimbursement is dependent on State approval of the city' s claim and on funds available in the State budget. HdL will assist the City and/or its consultant in preparation of the SB 90 claim.

J. TERMINATION
This Agreement may terminate each year upon written notice thirty days (30) days prior to the anniversary date of the Agreement. Upon termination, the software license shall expire and the software shall be returned to HdL.

K. INDEPENDENT CONTRACTOR
HdL shall perform the services hereunder as an independent contractor. No agent, representative or employee of HdL shall be considered an employee of the City.

L. NON -ASSIGNMENT
This Agreement is not assignable either in whole or in part by HdL or the City without the written consent of the other party.

M. GOVERNING LAW
The laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Agreement and shall also govern the interpretation of this Agreement.

N. INDEMNIFICATION
HdL shall indemnify and hold harmless City and its officers, officials and employees from any liability for damage or claims for personal injury, including death, as well as from claims for breach of confidentiality or property damage, including attorney fees, which may arise out of the performance of the work described herein, caused in whole or in part by any negligent act or omission of HdL, its officers, agents and employees under this Agreement.

The HdL Companies 9

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Agreement for Business License Services
City of Beaumont
City shall indemnify and hold harmless HdL, its officers, agents and employees, from any liability for damage or claims for personal injury, including death, as well as from claims for breach of confidentiality or property damage which may arise from City's negligent acts, errors or omissions under this Agreement. City agrees to and shall defend HdL and its officers, agents and employees from any suits or actions at law or in equity for damage caused, or alleged to have been caused, by reason of any of the aforesaid negligent acts, errors or omissions.

O. NOTICE
All notices required by this Agreement shall be given to the City and to HdL in writing, by personal delivery or first class mail postage prepaid, addressed as follows:

City CITY OF BEAUMONT
550 East 6th Street
Beaumont, California 92223
HdL HdL SOFTWARE, LLC
1340 Valley Vista Drive, Suite 200
Diamond Bar, California 91765
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the date first above written by their respective officers duly authorized in that behalf.

HdL SOFTWARE, LLC:
747/.6x z /ae,47
APPROVED AS TO FORM:

The HdL Companies
IO

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c gq4
HdL* _

COMPANIES
07/11/2013
Revenue Management for Local Government

THE CITY OF BEAUMONT
Sales Tax Audit
Work Authorization No. 22
Hinderliter, de Llamas & Associates
HdLCoren & Cone
The businesses listed on Attachment A located in the City of Beaumont have been identified as having the potential for generating additional sales tax revenue to the City of Beaumont Contractor is hereby authorized to contact the given businesses and the State Board of Equalization to verify the accuracy of the current reporting methodology and obtain the nececcary documentation for the Board of Equalization, to modify allocation formulas, and to return previous misallocated revenue that may be due to the City.

THE C .� F BEAUMONT
1 Date
%2
HiNDERLITER. DE LLAMAS AND ASSOCIATES
By: •+©
Date 07/11/2013
1340 Valley Vista Drive I Suite 200 I Diamond Bar, CA 191765 I (909) 861-4335 I Fax (909) 861-7726

Page 1527 of 1595 ends

ATTACHMENT A Page 1

THE CITY OF BEAUMONT

SALES TAX AUDIT
Work Authorization No. 22
Date 07/11/2013
Boost Mobile
383 E 6th St Unit B
Sch C 31 SR EH 102-262278
Bp Solar
1540 E 2nd Street
Sch F 99 SR OH 100-448002
Back Quarter Recovery Only
Highland Springs Pharmacy
81 S Highland Springs Ave #90
Sch C 84 SR EH 023-714344

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MHdCOMPANIES
L
January 28, 1999
Revenue Management for Local Government
Ms. Elizabeth Urtiaga
City of Beaumont
550 East 6th Street
Beaumont, California 92223
Dear Elizabeth:

Hinderliter, de Llamas & Associates
HdL Coren & Cone
HdL Software, LLC
Please find enclosed your fully executed copy of the Agreement for Business License Services with your city.

We are looking forward to working with you and your staff. Should you have any questions, please let us know.

Sincerely,
Administrative Assistant to Nancy Hicks
/pf
Enclosure
1340 Valley Vista Drive Suite 200 Diamond Bar, CA 1 91765 1 19091 861-4335 I FAX 19091 861-7726

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��HdL
October 16, 1997
Revenue Management for Local Government
Ms. Elizabeth Urtiaga
City of Beaumont
550 East 6th Street
Beaumont, CA 92223
Dear Elizabeth:

Hinderliter, de Llamas & Associates
HdL Coven & Cone
HdL Software, LLC
We are delighted to have you as a new business license client. Enclosed is the Agreement for Business License Services for the City of Beaumont for your review. Please have this document signed by your City officials and return two executed copies to our office at your earliest convenience. Upon receipt, Nancy will execute and I will forward a fully executed Agreement to you.

The HdL Team Members serving the City of Beaumont. Our team is excited about the installation of the system in Beaumont. From time to time, you and your business license staff will be hearing from our team members, Nancy Hicks, Robert Gray, Peggy Fickett, Michael Eure, Craig Miller and myself.

What we will need to get started. Our anticipated start date for the implementation of the new system is 120 days from the date the Business License Agreement has been signed by all parties. If data conversion is easy, the process speeds up since that is where the most time and effort are required. In the meantime, we will need the following items:

1. A copy of your business license data saved in an ASCII format. If the fields are fixed length, no delimiters are required. We will also need a print out of the file layout.

2. Your City logo saved as a bitmap (bmp) or a black and white slick for scanning.

3. Copies of your business license forms.

4. A copy of your City's ordinances, codes, classifications, business types and rate types.

You can mail your data on diskette or you may modem your data to us, whichever is convenient.

Our modem number is 1-909-860-7465. Please call myself or Robert and let us know when you are sending the file. We are looking forward to working with you and your staff. If you have any questions or comments, please give a call. Nancy will plan a meeting with you about two weeks after we receive forms and business types and rate types. Talk to you soon! Sincerely,
Kay Read
Admini ative Assi 'tant to Nancy Hicks
Business`Licensc:- epartment
F:1WINIKAY\LETTERSICITIESI4-PR0CES.D0C
1340 Valley Vista Drive Suite 200 ! Diamond Bar, CA [ 91765 I !909] 861-4335 I FAX [909] 861-7726

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Agreement for Business License Services
City of Beaumont

AGREEMENT FOR BUSINESS LICENSE SERVICES
This agreement is made and entered into as of the day of October, 1997, by and between the CITY OF BEAUMONT, a municipal corporation, hereinafter referred to as City, and HdL SOFTWARE, LLC, a California corporation, hereinafter referred to as HdL.

A. BUSINESS LICENSE SOFTWARE.

HdL shall provide the City with an easy to operate, menu driven Business License Software System which includes the following capabilities:

1. Maintenance and processing.
a. The software will store, print and process all business license records, including annual licenses and those which may be issued on a daily, monthly, quarterly or semi-annual basis. It will process licenses for businesses based on any number of City determined factors including, but not limited to, gross receipts, number of employees, coin -operated devices, and number of vehicles. b. The software will allow easy data entry of the information contained in business license applications. Based on business type and rate tables, it will calculate fees and print licenses. It will track unrenewed licenses and print renewal notices at the end of the license period, which contain specific calculation instructions based on business type and rate type. Delinquent notices will be generated, which include the calculation of late fees and penalties. The system will generate a journal entry for entering business license payments into the accounting records. c. The software provides a tracking system to insure that businesses have received the appropriate approvals and permits from various city departments.

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Agreement for Business License Services
City of Beaumont
d. The software contains data fields for the entry of other business related information such as emergency contact name and address, alarm company or patrol company information, SIC codes, and room or building capacity. e. The system will maintain business license history for active and closed businesses including prior fees, receipts and business characteristics. The amount of history to be stored will be determined by the City and is dependent on the available free space on the City's computer.
f. Users will be able to make inquiry into the data set in a variety of ways, by license number, business name, owner name, address, telephone number, vehicle license number and key word.

2. Audit features. The business license software has the ability to cross check against other data sets available through HdL, such as sales tax and property tax and telephone directories. HdL intends to add other data sets such as membership directories of state organizations. This will assist the City in detecting unlicensed businesses. These additional features will be added as developed at no additional cost.

3. Reports. A variety of reports are available, in standard format and on an ad hoc basis, including, but not limited to, reports by business name, address, or type, mailing labels and the mandated reports to the Franchise Tax Board on magnetic media. The system will also permit the export/import of data for use on laptop computers by field inspectors. The software will allow the generation of a variety of management reports, for example by geographic area, SIC code and/or amount of business license revenue paid.

4. Security. The system allows for user defined levels of security and confidentiality through the use of passwords.

Agreement for Business Licenses Services Page # 2
F:1WIN\ KAnB LCOC SICONTRACL'\SAMPLE. DOC

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Agreement for Business License Services
City of Beaumont

5. Ongoing software upgrades are provided as part of the annual maintenance fee.

B. MANAGEMENT SUPPORT
HdL is available to assist the City in evaluating current policies and procedures to enhance the audit, collection and enforcement of the City's business license taxes.

Examples may include the redesign of forms and/or reports, and strategies for improving communication with the business community as well as other City departments that are involved in the business license process.

C. CONVERSION AND IMPLEMENTATION

1. HdL will convert the City's existing business license data to HdL program files. HdL will build the tables for the City (rate tables, business type tables, SIC code tables, etc.) (If rates or business types change in the future, or new ones are created, the tables are maintainable by the City.)
The City agrees to provide current business license data information in machine readable format. If this is not possible, there may be an additional charge for manually converting the data. The work will be done on a time and material basis in consultation with the City.

3. The new data set and software will be installed on the City's designated standalone computer or computer network. If the City uses HdL sales and property tax programs, these programs will be integrated with the business license system at no additional Agreement for Business Licenses Services Page # 3
FAW INAKAY\BLDOCSICONIRACIISAMPLE.DOC

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Agreement for Business License Services
City of Beaumont
cost. If the City is not a client for HdL sales and property tax programs, there will be a charge to link to another vendor's data set or for HdL to supply the data.

4. Training will be provided for the business license staff at the time of installation. A four hour training session is anticipated. Trained HdL staff will be available for any follow up needed either by telephone or in person as part of our ongoing maintenance and support.

5. User manuals will be provided.

6. Timeline for implementation of the business license software system is approximately four (4) months from the date of approval of the contract.

D. HARDWARE REQUIREMENTS
The business license software will be installed on hardware supplied by the City. The HdL business license software is a Windows application requiring Microsoft Windows

3.1 or higher.

1. A PC compatible 486DX2 or Pentium system is required, with 8 MB of memory and a VGA monitor. The amount of free space required on the hard drive is dependent on the number of licenses and the extent of the history maintained, but will range typically from 35MB to 50MB.

2. In a network environment, the server must be a dedicated server. The software will operate with all currently existing network software.

3. The software is designed to work with a basic laser printer or higher. An HP4, HP5 or comparable is recommended.

Agreement for Business Licenses Services Page # 4
FAWIN1RAY\B LD0CS'C0NTRACIISAMPLE.D0C

Page 1534 of 1595 ends

Agreement for Business License Services
City of Beaumont
E. ACCEPTANCE OF THE SOFTWARE
The scheduled date of acceptance of the software by the City is the when all data has been converted, all tables have been built, and licenses, renewals and reports can be generated.

The acceptance date will become the anniversary date of the Agreement.

F. SOFTWARE MAINTENANCE AND CUSTOMER SUPPORT
HdL will provide ongoing software upgrades and updated data from HdL's proprietary data sets and cross -directories to assist the City in its audit work. HdL's standard maintenance and customer support includes telephone support as needed by the City and up to twelve hours of onsite support annually.

The first year maintenance and support is provided at no cost. There is an annual maintenance fee beginning the second year. See Paragraph I "Compensation" for the fee schedule.

H. SOFTWARE LICENSE

1. License. HdL hereby provides a license to the City to use HdL's Business License Software. The software shall only be used by the City. The City shall not sublet, duplicate, or modify said software. The software shall be returned to HdL at the time the license expires, which is the last day of the last year for which the annual maintenance fee has been paid by the City to HdL. The license granted hereunder shall not imply ownership by City of said software, rights of the City to sell said Agreement for Business Licenses Services Page # 5
E:\WIN\KAYYBLD0CS\C0N7RACTSAMPLE.D0C

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Agreement for Business License Services
City of Beaumont
software, or rights to use said software for the benefits of others. This license is not transferable.

2. City data. HdL acknowledges that the business license data is the property of the City. At the termination of this Agreement, the business license data will be available to the City in machine readable format.

3. Proprietary information. As used herein, the term "proprietary information" means any information which relates to HdL's computer or data processing programs; data processing applications, routines, subroutines, techniques or systems, or business processes. City shall hold in confidence and shall not disclose to any other party any HdL proprietary information in connection with this Agreement or otherwise learned or obtained by the City in connection with this Agreement. The obligations imposed by this Paragraph shall survive any expiration or termination of this Agreement. The terms of this section shall not apply to any information which is public information.

1. Annual maintenance and customer support fee. There is no charge for the first year maintenance and customer support. The annual maintenance fee shall begin at the second year (which includes software upgrades and support to your staff) and shall be as follows:

Agreement for Business Licenses Services Page # 6
FAWINWAYBLD0CSIC0NTRACTISAMPLE.D0C

Page 1536 of 1595 ends

Agreement for Business License Services
City of Beaumont
Standalone:
or
Network:
$ 2,000 for 1 user
$ 2,000 for the 1st user
Plus $ 800 each additional user
Maximum of $10,000
This maintenance fee is based on the number of users (defined as those who have access to the system to add, edit or print). There is no charge for those who have inquiry rights only.

3. Customizing services. The business license software is a "table driven" system and has been developed to meet almost all of the needs of a City with regard to the management, processing and reporting of business licenses. However, should the need occur, HdL is available to provide custom enhancements to the business license software on a pre -determined time and materials basis. No work shall be performed without prior written approval of the City. Fees for these services are as follows:

Principal
Principal programmer
Associate
Associate programmer
Secretarial/Administrative
$ 135 per hour
135 per hour
85 per hour
85 per hour
35 per hour

4. SB 90 reimbursement. Certain costs associated with the Business License Software may be eligible for reimbursement under the provisions of SB 90. HdL will assist the City and/or its consultant in preparation of the SB 90 claim.

Agreement for Business Licenses Services Page # 7
FAWINNKAYIELD0CMC0NIRACIISAMPLE.D0C

Page 1537 of 1595 ends

Agreement for Business License Services
City of Beaumont
K. TERMINATION
This Agreement may terminate each year upon written notice thirty days (30) days prior to the anniversary date of the Agreement. Upon termination, the software license shall expire and the software shall be returned to HdL.

L. INDEPENDENT CONTRACTOR
HdL shall perform the services hereunder as an independent contractor. No agent, representative or employee of HdL shall be considered as an employee of the City.

M. NON -ASSIGNMENT
This Agreement is not assignable either in whole or in part by HdL or the City without the written consent of the other party.

N. GOVERNING LAW
The laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Agreement and shall also govern the interpretation of this Agreement.

O. INDEMNIFICATION
HdL shall indemnify and hold harmless City and its officers, officials and employees from any liability for damage or claims for personal injury, including death, as well as from claims for breach of confidentiality or property damage, including attorney fees, which may arise out of the performance of the work described herein, caused in whole or in part by any negligent act or omission of HdL, its officers, agents and employees under this Agreement.

City shall indemnify and hold harmless HdL, its officers, agents and employees, from any liability for damage or claims for personal injury, including death, as well as from claims for breach of confidentiality or property damage which may arise from City's negligent acts, errors or omissions under this Agreement. City agrees to and shall defend HdL and its officers, agents and employees from any suits or actions at law or in equity for damage Agreement for Business Licenses Services Page # 8
F:\WIN\KAY\BLDOCS' CONTRACT\SAMPLE.DOC

Page 1538 of 1595 ends

Agreement for Business License Services
City of Beaumont
caused, or alleged to have been caused, by reason of any of the aforesaid negligent acts, errors or omissions.

P. NOTICE
All notices required by this Agreement shall be given to the City and to HdL in writing, by personal delivery or first class mail postage prepaid, addressed as follows:

CITY: HdL:

CITY OF BEAUMONT HdL SOFTWARE, LLC
City Clerk
APPROVED AS TO FORM:

City Attorney
Agreement for Business Licenses Services Page # 9
F:1W1N\KAYIBLD0CSIC0NTRACT\SAMPLE.D0C

Page 1539 of 1595 ends

Agreement for Business License Services
City of Beaumont

A. BUSINESS LICENSE SOFTWARE.

HdL shall provide the City with an easy to operate, menu driven Business License Software System which includes the following capabilities:

Page 1540 of 1595 ends

4. Security. The system allows for user defined levels of security and confidentiality through the use of passwords.

Agreement for Business Licenses Services Page # 2
F:1WINNKAY1BLDOCSICONTRACIRSAMPLE.D OC

Page 1541 of 1595 ends

Agreement for Business License Services
City of Beaumont

5. Ongoing software upgrades are provided as part of the annual maintenance fee.

B. MANAGEMENT SUPPORT
HdL is available to assist the City in evaluating current policies and procedures to enhance the audit, collection and enforcement of the City' s business license taxes.

C. CONVERSION AND IMPLEMENTATION

3. The new data set and software will be installed on the City' s designated standalone computer or computer network. If the City uses HdL sales and property tax programs, these programs will be integrated with the business license system at no additional Agreement for Business Licenses Services Page # 3
F:\W 1N\KAY\B LD0CS\C0NTRACI\SAMFLE.D0C

Page 1542 of 1595 ends

4. Training will be provided for the business license staff at the time of installation. A four hour training session is anticipated. Trained HdL staff will be available for any follow up needed either by telephone or in person as part of our ongoing maintenance and support.

5. User manuals will be provided.

6. Timeline for implementation of the business license software system is approximately four (4) months from the date of approval of the contract.

D. HARDWARE REQUIREMENTS
The business license software will be installed on hardware supplied by the City. The HdL business license software is a Windows application requiring Microsoft Windows

3.1 or higher.

2. In a network environment, the server must be a dedicated server. The software will operate with all currently existing network software.

3. The software is designed to work with a basic laser printer or higher. An HP4, HP5 or comparable is recommended.

Agreement for Business Licenses Services Page # 4
F:1W IIVIKAYIBLD0C'3'C0NIRACI\SAMPLE.D0C

Page 1543 of 1595 ends

The acceptance date will become the anniversary date of the Agreement.

The first year maintenance and support is provided at no cost. There is an annual maintenance fee beginning the second year. See Paragraph I "Compensation" for the fee schedule.

H. SOFTWARE LICENSE

Page 1544 of 1595 ends

Agreement for Business License Services
City of Beaumont
software, or rights to use said software for the benefits of others. This license is not transferable.

3. Proprietary information. As used herein, the term "proprietary information" means any information which relates to HdL's computer or data processing programs; data processing applications, routines, subroutines, techniques or systems, or business processes. City shall hold in confidence and shall not disclose to any other party any HdL proprietary information in connection with this Agreement or otherwise learned or obtained by the City in connection with this Agreement. The obligations imposed by this Paragraph shall survive any expiration or termination of this Agreement. The terms of this section shall not apply to any information which is public information.

Agreement for Business Licenses Services Page # 6
F:\WINUCAYIBLDOCS\CONTRAC ISAMPLE.D0C

Page 1545 of 1595 ends

Principal $ 135 per hour
Principal programmer 135 per hour
Associate 85 per hour
Associate programmer 85 per hour
Secretarial/Administrative 35 per hour

Agreement for Business Licenses Services Page # 7
F:1WIN1KAYYBLDOCS'CONTRACPSAMF'LE.DOC

Page 1546 of 1595 ends

L. INDEPENDENT CONTRACTOR
HdL shall perform the services hereunder as an independent contractor. No agent, representative or employee of HdL shall be considered as an employee of the City.

M. NON -ASSIGNMENT
This Agreement is not assignable either in whole or in part by HdL or the City without the written consent of the other party.

Page 1547 of 1595 ends

Agreement for Business License Services
City of Beaumont
caused, or alleged to have been caused, by reason of any of the aforesaid negligent acts, errors or omissions.

P. NOTICE
All notices required by this Agreement shall be given to the City and to HdL in writing, by personal delivery or first class mail postage prepaid, addressed as follows:

CITY: HdL:

CITY OF BEAUMONT HdL SOFTWARE, LLC
City Clerk
APPROVED AS TO FORM:

City Attorney
Agreement for Business Licenses Services Page # 9
FAWINNICAWLDOCMCONTRACT SAMPLE.DOC

Page 1548 of 1595 ends

C O V E R
FAX

S H E E T
To: Joe Aklufi
Fax #:

Subject: Business License Contract
Date: October 20, 1997
Pages: 10, including this cover sheet.

COMMENTS:

Please review and comment. If everything is OK, I have the three originals for your signature.

Thank you. Elizabeth
From the desk of...

Elizabeth M. Urtiaga
Customer Service Coordinator
City of Beaumont
550 East 6th Street
Beaumont, CA 92223
(909) 769-8520
Fax: (909) 769-8526

Page 1549 of 1595 ends

Agreement for Business License Services
City of Beaumont

A. BUSINESS LICENSE SOFTWARE.

HdL shall provide the City with an easy to operate, menu driven Business License Software System which includes the following capabilities:

Page 1550 of 1595 ends

4. Security. The system allows for user defined levels of security and confidentiality through the use of passwords.

Agreement for Business Licenses Services Page # 2
FAWIWWAYSLDOCS\CON RACIISAMPLE.DOC

Page 1551 of 1595 ends

Agreement for Business License Services
City of Beaumont

5. Ongoing software upgrades are provided as part of the annual maintenance fee.

B. MANAGEMENT SUPPORT
HdL is available to assist the City in evaluating current policies and procedures to enhance the audit, collection and enforcement of the City's business license taxes.

C. CONVERSION AND IMPLEMENTATION

1. HdL will convert the City' s existing business license data to HdL program files. HdL will build the tables for the City (rate tables, business type tables, SIC code tables, etc.) (If rates or business types change in the future, or new ones are created, the tables are maintainable by the City.)
The City agrees to provide current business license data information in machine readable format. If this is not possible, there may be an additional charge for manually converting the data. The work will be done on a time and material basis in consultation with the City.

3. The new data set and software will be installed on the City's designated standalone computer or computer network. If the City uses HdL sales and property tax programs, these programs will be integrated with the business license system at no additional Agreement for Business Licenses Services Page # 3
FAW IMCAYIB LDOCSICONTRACTNSAMPLE.DOC

Page 1552 of 1595 ends

4. Training will be provided for the business license staff at the time of installation. A four hour training session is anticipated. Trained HdL staff will be available for any follow up needed either by telephone or in person as part of our ongoing maintenance and support.

5. User manuals will be provided.

6. Timeline for implementation of the business license software system is approximately four (4) months from the date of approval of the contract.

D. HARDWARE REQUIREMENTS
The business license software will be installed on hardware supplied by the City. The HdL business license software is a Windows application requiring Microsoft Windows

3.1 or higher.

2. In a network environment, the server must be a dedicated server. The software will operate with all currently existing network software.

3. The software is designed to work with a basic laser printer or higher. An HP4, HP5 or comparable is recommended.

Agreement for Business Licenses Services Page # 4
F:1WINWAYEILD0Cs1C0NTRACINSAMJLE.D0C

Page 1553 of 1595 ends

The acceptance date will become the anniversary date of the Agreement.

The first year maintenance and support is provided at no cost. There is an annual maintenance fee beginning the second year. See Paragraph I "Compensation" for the fee schedule.

H. SOFTWARE LICENSE

Page 1554 of 1595 ends

Agreement for Business License Services
City of Beaumont
software, or rights to use said software for the benefits of others. This license is not transferable.

3. Proprietary information. As used herein, the term "proprietary information" means any information which relates to HdL's computer or data processing programs; data processing applications, routines, subroutines, techniques or systems, or business processes. City shall hold in confidence and shall not disclose to any other party any HdL proprietary information in connection with this Agreement or otherwise learned or obtained by the City in connection with this Agreement. The obligations imposed by this Paragraph shall survive any expiration or termination of this Agreement. The terms of this section shall not apply to any information which is public information.

COMPENSATION
Software license fee. The one time software license fee shall be $5,000 which is based on 730 business licenses issued annually. Our first year fee is based on the number of licenses due primarily to the amount of conversion work required. 50% of this amount shall be due and payable within thirty days of the effective date of this Agreement and the remaining 50% within thirty days of the date of acceptance of the software by the City as set forth in Paragraph E.
1 Annual maintenance and customer support fee. There is no charge for the first year maintenance and customer support. The annual maintenance fee shall begin at the second year (which includes software upgrades and support to your staff) and shall be as follows:

Agreement for Business Licenses Services Page # 6
F:1W L\\KAYIBLDOCS\CONIRAC11SAMPLE.DOC

Page 1555 of 1595 ends

Principal
Principal programmer
Associate
Associate programmer
Secretarial/Administrative
$ 135 per hour
135 per hour
85 per hour
85 per hour
35 per hour

Page 1556 of 1595 ends

L. INDEPENDENT CONTRACTOR
HdL shall perform the services hereunder as an independent contractor. No agent, representative or employee of HdL shall be considered as an employee of the City.

M. NON -ASSIGNMENT
This Agreement is not assignable either in whole or in part by HdL or the City without the written consent of the other party.

Page 1557 of 1595 ends

Agreement for Business License Services
City of Beaumont
caused, or alleged to have been caused, by reason of any of the aforesaid negligent acts, errors or omissions.

P. NOTICE
All notices required by this Agreement shall be given to the City and to HdL in writing, by personal delivery or first class mail postage prepaid, addressed as follows:

CITY: HdL:

CITY OF BEAUMONT HdL SOFTWARE, LLC
City Clerk
APPROVED AS TO FORM:

City Attorney
Agreement for Business Licenses Services Page # 9
FAW INAKAYIBLD0CSIC0NTRACI\SAMPLE.D0C

Page 1558 of 1595 ends

THEHdL

COMPANIES
August 21, 1997
Revenue Management for Local Government
Ms. Shelby Hanvey
City of Beaumont
550 East 6th Street
Beaumont, California 92223
Dear Shelby:

Hinderliter, de Llamas & Associates
HdL Coren & Cone
HdL Software, LLC
On November 25, 1996, we sent a proposal to your City for our Business License System. We know everyone has been busy with budgets and year-end closes but thought we'd remind you about our program. Our program has been widely received by many California cities and we are very pleased with its success.

Although we have increased our prices for the system effective ruly 1, 1997, we wanted you to know that we will honor the pre -quoted price in your proposal until October 1, 1997. If you are still interested in the system, please give us a call or a notice of intent and we will hold the price for you.

I would be delighted to visit your City anytime and give a demonstration of our system to you and others in your organization (have lap top - will travel). I have enclosed our brochure and a feature summary of our Business License System. Hope to hear from you soon.

Sincerely,
Nandy Hicks
Enclosure
NH/ksr
F:IWINIKAY\BL-DOCS\PROPOSAL\3-FOLLUP.DOC
1340 Valley Vista Drive I Suite 200 I Diamond Bar, CA 191765 I [9091 861-4335 I FAX 1909] 861-7726

Page 1559 of 1595 ends

02/09/1998 14:19 9098617726
•
�..1fdl
( ()\11'l\Ii.�
TO:

FROM:

HDL COMPANIES PAGE 01

FACSIMILE COVER SHEET
CONMEN S:

FAx NO: 9a9- 7b9- 15 7
o.,E: a�9 X98
/1-eit,L.-6:0a ?
(
Number of pages C (including cover sheet)
Phone: (909) 861-4335
Fax: (909)861-7726
1340 Valley Vista Dr., Suite 200
Diamond Bar, California 91765
Note: This message is intended only for the use of the individual or entity to which it is addressed, and may contain information that is privileged, confidential and exempt front disclosure under applicable law. If the reader of thus message is not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is prohibited. If you received this message in error, please notify us immediately by telephone.

Page 1560 of 1595 ends

02/09/1998 14:19
9 098 61 77 26
HDL COMPANIES PAGE 02
Firm Name

EXCEPTIONS REPORT - SALES TAX
Sample Only (Gotham City)
Firm Address
BEAN No Start Allocation
7 Eleven Food Store 18
88 Pharmacy
A&B
A & One Stationery Co
A A Trading
A D I Enterprises
A Perfect Communicatio
A Plus Trading Co
Ace Video Magnetics
Acg Green Group Inc
Active Armor Fitness W
Advanced Alternator An
Advanced Tech Soluctio
Agapex Inc
Albert H Marotta Judy
Alfa Box Corporation
Alley Hoop
Allstrong Restaurant E
Amercbin World Inc
American International
Amie Huang
Andys Appliance Repair
Ann Marie Kirk
Ann Marie Pisula
Anova International
Apex Computer Services
Ashley Basket And Bouq
Assn Telephone Pioneer
Att Fashion
Audio Specialists
Authentic Tamale Facto
Axxes Distributing
Baby Alexis Gift Shop
Balloon Works
Balloons & Bows
Bank Of America Nt & S
Baskin Robbins Ice Cre
Bear Essential
Beijing Chinese Herbs
Betty M Kearby
Blue Moon Enterprises
Boathouse Sushi Restau
Break A Way Hockey C1u
Brown & Root Technical
Suckles & Things
Burgers And More
C & N Speciality Whole
C R Fixture
2140 S. Fremont
88 S. Palm Ave
724 S. 9th St
4125 E. Live Oak
1808 Cedar St
2304 Hitchcock Dr
104 E. Adams Ave
1808 W. Cedar St
1108 Violeta Dr
2323 W. Norwood PI
1316 Westminster Ave
2318 W. Main Gotham
805 E. Pint St
1325 S. Primrose Ave
2901 W. Fremont Blv
2008 Orange St
212 S. Marengo Gotham
1033 Westminster Got
2229 S. Palm Ave
1635 W. Main St
W32 S. Hidalgo Ave
207 El Molino Gotha
2629 W_ Hellman Ave
521 Alahmar St
522 S. Electric Ave
229 La Paloma Ave
1100 W. Commonweatlh Ave
100 N. Stoneman Ave
1418 E. Valley Blv
1340 W. Main
3009 W. Midwick Dr
1827 S. Olive Ave
109 E. Gotham Rd
429 S. Elm St
211 S. Granada Ave
160 E. Main St
406 E. Valley Blv
2509 Birch St
111 VV. MainSt
610 S. 2nd
704 N. Bushnell Ave
201 E. State St
131 S. Marguerita Ave
1000 S. Fremont Gotham
3015 W. Hellman Ave
1101 W. Commonwealth Ave
407 6th St
116 E. Commonwealth Ave
17702452 08/82 $ 0.00
99442163 03/94 0.00
99381896 11/93 0,00
17635276 01/70 0.00
17813423 03/92 0,00
99394211 12/93 0.00
99555693 09/94 0.00
99493796 05/94 0.00
99349106 09/93 0.00
17812868 02/92 0.00
99507100 05/94 0.00
99386088 07/93 0,00
9913I549 09/92 0,00
99541789 07/94 0.00
99114320 08/92 0.00
99491946 08/93 0.00
99409147 12/93 0.00
99388437 10/93 0.00
17800931 05/91 0.00
I1792359 02/86 0.00
17785509 10/89 0.00
99259944 04/93 0.00
17785272 01/90 0.00
17675248 08/77 0,00
99208560 01/93 0.00
99201029 01/93 0,00
99426889 01/94 0.00
11707854 07/82 0.00
99546082 09/94 0.00
17647372 09/71 0,00
99483563 05/94 0.00
17800971 04/91 0.00
99352271 09/93 0.00
99458646 03/94 0,00
17813096 02/92 0.0,0
I9663229 01/80 0.00
99435482 02/94 0.00
17701417 07/82 0.00
99414394 01/94 0.00
17689530 08/80 0.00
17800942 04/91 0.00
17730697 06/85 0.00
99139547 10/92 0.00
30691686 10/89 0.00
178) 6936 05/92 0.00
17780556 09/89 0.00
99152742 10/92 0.00
11686813 09/79 0.00

Page 1 ends

Page 1561 of 1595 ends

02/09/1998 14:19 9098617726
HDL COMPANIES PAGE 03
Firm Name Firm Address
BEAN No Start Allocation
Cag International Trad 1011 S. Freemont 99203687 02/93
Calif Federal Savings 1 W. Bay State St 98036182 05/66
Calif School Of Prfssn 1000 S, Freemont (711) 25879566 01/90 California Computers T 126 S. Marengo Ave 99408754 01/94 California Kid 1117 S. 2nd St 17761218 11/87
Calypso Enterprises 2608 W. Grand Ave 17815009 03/92
Carla Baguet Payne 404 N. Marguerita Ave 17757588 09/87 Carla Maramag 101 B. San Marino Ave 11699101 05/81
Carlos Martinez 409 N. Ethel Ave 99452158 03/94
Carmel Contest 1818 S, Chapel Ave 99391081 12/93
Cassimus Company 1510 Chestnut Gotham 17072316 01/57
Castar International I 2233 W. Main St 99208618 03/93
Cathay Bank Of Los Ang 601 N. Atlantic Blv 11759558 05/87 Catherine S Bolin 507 N. Almansor St 14735892 02/88
Cesar E Aguilar & Norm 3140 Poplar Blv 11772143 08/88
Chase Computers 210 E. Malin St 17781656 10/89
China Video Studio 2418 W. Valley Blv 99558661 08/94
Chinese Periodical Dis 307 S. Stoneman Ave 17759675 11/87 Christian Science Read 202 W. Commonwealth Ave 17006145 22/22 Christopher, Chang Ee L 1111 Main St 99166870 12/92
Chunkiat Cua 911 N. Bushnell Ave 14724084 01/87
Colours 1000 N, Hidalgo Ave 17738080 01/86
Commercial Office Prod 1615 Westmont Dr 99465741 04/94
Comptronics 1800 S. Elm St 17815564 04/92
Cookies Kitchen 7 S. 2nd St 99451248 04/94
Cottage Heirlooms 323 E, Adams Ave 17757115 09/87
Covert Enterprise 326 S. Granada Ave 99186406 01/93
Craft Merchant 513 Westminster Ave 99312864 07/93
Crafty Rosie 166 Palatine Dr 99475371 07/94
Cretien Inc 428 S. Monterey St 17802157 05/91
Crystals Office Suppli 2123 Meridian Ave 99396900 12/93 Ctc Aero Corp 1130 Front St 99321567 07/93
Cue Ball 932 E. Main St 11696226 01/81
Customsoft 1604 S. 3rd St 99529805 07/94
D & K Chameleons 920 Westmont Dr 99298658 06/93
Dainzu 2540 N. Rosemead Blv 17753413 05/87
Daniel Parada 1628 S. Palm Ave 99308821 06/93
Danilo S Studio 324 N. Marengo Ave 17744515 07/86
Daves Electric Company 1809 Hidalgo Gotham 99553974 08/94 David & Co Ltd 146 F. Duarte Rd 17749873 01/87
David Bennett Robbins 1600 S. El Molino Gotha 99284429 05/93 David Shun Wong Huang 1820 Vine St 17815052 03/92
Del Sol Cafe 1433 B. Valley 131v 99268470 06/93
Delicious Chicken Comp 1013 W. Valley Blv 17732541 07/85 Desk Top Flowers & An 807 W. Shorb St 99225641 02/93
Dewell Trading Co 921 N. Atlantic Blv 99425338 01/94
Diamonds By Blanca 1724 Glenview Dr 99267712 04/93
Diane Marie Carson 207 S. Cordova St 11758024 05/87
Dolls By Angela 325 W. Ramona Rd 99524023 06/94
Dolores Yolanda Esparz 804 Winchester Goth 99350208 09/93 Dystinies Balloons 417 S. Hidalgo St 99354790 09/93
$ 0.00

0.00 0.00

0.00 0A0

0.00 0.00

Page 2 ends

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02/09/1998 14:19
9 098 61 77 26
HDL COMPANIES PAGE 04
Firm Name
Firm Address
BEAN No Start Allocation
East West Fed Savings
Easttise Trading Corpo
Easy To Learn
Edward Ken Awaya
Effective Trimming Com
Eight M International
Eileen Anderson Truetna
Elite Buttons & Trims
Eliz Design Well Join
.Elizabeth Jean Toms
Empire International
Erin Giambalvo Flowers
Express Catering
Faces & Places
Fashions By Francesca
Felipe E Vivar
Firth
First Interstate Bank
Fm Connection
Frederick M Ferias Sr
Freeord Usa Corp
Fuen Ju Lin
Puente De Salud
G K Tool Sales
Garcia Engineemg Desg
Gary Shiro Yamauchi
Gator Machinery Compan
General Language Tradi
General Trading Intern
Gerald V Barba
Glendy International I
Golden Crown Co
Good Fortutie Company
Gotham City School Dig
Gotham Dodge Inc
Gotham Electrical Equi
Gotham Floral & Gifts
Gotham Ford
Gotham Frameworks
Gotham Home lmprovemen
Gotham Hubcaps Tinting
Gotham Motor Parts
Gotham Optical Trading
Gotham Pizza Inc
Great Attraco Internet
Greatmerchant Corp
Greenery Interiors
Grunauer Enterprises P
H & P Importer & Whole
H K Distribution
Hal! 0 Fame
403 W. Valley Blv
322 S. Date Ave
1411 S. Monterey
429 E. Pine St
315 S. Marguerite Ave
429 N. Olive Ave
1416 S. Chapel Ave
2468 Whitney Gotham
16 08 S Marguerite
1722 Acacia St
1209 N. Hidalgo Ave
225 Stockbridge Ave
2031 S. 3rd St
129 S. Cordova St
817 S. 2nd St
2540 Loma Vista Dr
1640 Grandview Dr
1910 W. Main St
521 N. Palm Ave
613 La Paloma Ave
818 S. Raymond Ave
1820 Date Ave
545 S. Atlantic B1v
100 N. Vega St
1601 S. Granada Ave
429 N. Campbell Ave
1024 Westminster Got
220 N. Marengo Ave
1414 S. Olive Ave
2211 S. Date Ave
629 S. Fremont Ave
2012 Cedar St
111 S. Amrguerita Ave
15 W. Gotham Rd
1439 W. Main St
707 S. Raymond Ave
2107 B West Commonwe Ave
410 S. Atlantic Biv
2801 W. Valley Blv
500 S. Marengo Ave
1346 W. Main St
2900 Montezuma
1239 E. Valley B1v
2136 S. Fremont
983 S. Meridian Ave
983 Meridian Ave
1624 S. Palm Ave
112 E. Gotham
116 S. Hiddago St
1019 S. Marguerite Ave
706 N. Electric Gotham
11704222 06/82 $ 0.00
11746010 08/83 0.00
17818390 06/92 0.00
99500961 05/94 0.00
99486822 05/94 0.00
99331202 08/93 0.00
99116484 09/92 0.00
99432538 02/94 0.00
99242326 03/93 0.00
99215761 02/93 0.00
99510082 06/94 0.00
99400355 12/93 0.00
18742403 03/91 0.00
17815959 05/92 0.00
99495185 05/94 0.00
99233918 03/93 0.00
17814851 03/92 0.00
99001359 01/80 0.00
99554246 08/94 0.00
40619895 12/76 0.00
99387792 11/93 0,00
17806372 07/91 0.00
99434258 02/94 0.00
17603631 07/65 0.00
99367607 10/93 0.00
17792001 08/90 0.00
99461049 02/94 0.00
99494810 04/94 0.00
99432952 02/94 0.00
14059478 01/64 0.00
17818517 05/92 0,00
99391795 11/93 0.00
99324913 08/93 0.00
17041454 01/50 0.00
17650658 02/79 0.00
17706588 01/83 0.00
17787685 03/90 0.00
98037902 09/69 0.00
17763549 04/88 0.00
30690422 02/94 0.00
99460449 04/94 0.00
17607393 03/66 0.00
99502461 05/94 0.00
30680571 06/91 0.00
17761354 08/87 0.00
17781250 08/89 0.00
13857313 03/90 0.00
99148582 11/92 0,00
99343545 09/93 0.00
99436804 03/94 0.00
99354819 09/93 0.00

Page 3 ends

Page 1563 of 1595 ends

02/09/1998 14:19 9098617726
HDL COMPANIES PAGE 05
Firm Name Firm Address BEAN No Start Allocation
Hanashima Restaurant 1 E. Hellman Gotham 99532467 04/94 Hans Development Inc 507 N. Garfield Gotham 99323121 07/93 Harmony Music 228 W. Main St 17040218 10/49
Harold Francis Korpal 821 N. Bushnell Ave 99413426 01/94 Harriett Gordon 529 N. Campbell Ave 11745544 03/86
Health Stimulation Cen 519 S. Hidalgo Ave 99407032 03/94 Helen R Castillo 1101 S. 5th St 17802184 05/91
High Tech Water Corp 130 N. Granada Ave 99341510 08/93
Honeycomb Craft Cases 1500 S. Ethel Ave 99546794 10/94
klsien Kuei Fu 108 N. Primrose Ave 99541309 07/94
Hsiu Feng Tien 918 W. Beacon St 99200545 01/93
Hua Li Draperies & 131i 1517 Westmont Dr 17815318 03/92 I S I Financial Froduc 600 S. Date Ave 17661654 01/74
I S T Eximport Corpora 1016 S. 2nd St 17791452 06/90
Ice 315 S. Marguerite Ave 99492690 05/94
Image Cd Rom Software 2317 Carwile Dr 99557163 08/94
Image Emblem Co 596 S. Marengo Ave 17811848 10/91
Image Pharmaceutical C 514 S. Hidalgo Ave 99475456 04/94 In N Out Motors Intn1 29 E. Linda Vista Ave 17796764 07/88 Industry Supply 907 Dos Robles PI 17765390 07/88
Ink Spot Litho 217 N. Garfield Ave 17691976 02/81
Inner Light 24 N. Olive Ave 14750553 02/89
Inter Exchange 2730 Montezuma Ave 99248681 04/93
Inter Trade World Wide 20 N. 4th St 99370848 10/93
International Ed Envrm 524 S. Electric Ave 18746004 10/91 Intl Liquor & Food Mar 16 S. Fremont Ave 99512774 07194 Ivy Ng Istok 9 S. 1st St 99383174 10/93
J & J U S A Company In 2416 W. Grand Ave 99543603 08/94 J B Interiors 1147 W. Main Gotham 40603028 07/73
Japanese Auto House 201 S. Curtis Ave 99268383 05/93
Jastron Technology 721 S. Palm Ave 11811568 01/92
Jc American Enterprise 206 E. Elgin St 99137495 10/92
Jerrys Carpet 1815 S. Valencia Gotham 99418179 01/94
Jesus Humberto Peeerez 2021 S. 9th St 99172601 11/92
Jesus Reynoso 30 S. Marguerite Ave 99409531 01/94
Jimmy Lift Mobil Forkl 309 N. Vega St 14784232 12/91
Jjr Gifts 116 N. Olive Ave 99460648 03/94
Joe Sam Chinese Fast F 1257 E. Valley BIv 17755193 06/87 Johann Kenneth Chiock 126 N. Valencia Gotham 99347474 10/93 Jones Chevrolet 1247 W. Main St 99161925 11/92
Joseph & Joseph 316 N. Stoneman Ave 99152814 08/92
Joseph Dino Abella 1625 S. Monterey St 99251302 04/93
Joses Mechanic Service 919 Westminster Got 99370977 11/93 Juanita M Covarnibias 2111 Hellman Ave 14705053 09/85
Judith & C Inc 201 E. Beacon St 99423293 12/93
Kalido Medical Supplie 1005 S. Electric Gotham 99383928 11/93 Karen Lorraine Wright 400 S. Cordova St 99343946 10/93
Kariton 1816 S. Palm Ave 99508116 06/94
Karscn Luthi 2412 Roark Dr 99383037 11/93
Kelly Tool & Mfg Co In 503 S. Palm Ave 17752279 Ot/87
Kenneth William Briel 801 S. Marguerite Ave 99280395 05/93 $ 0.00

0.00 0.00
0,00

0.00 0,00

0.00 0.00
0,00

0.00 0.00

0.00 0,00

0.00 0.00

0.00 0.00
0,00

0.00 0.00

0.00

Page 4 ends

Page 1564 of 1595 ends

02/09/1998 14:19 9098617726
HDL COMPANIES PAGE 06
Firm Name
Firm Address BEAN No Start Allocation
Kitnbo Trading Company 918 S. Atlantic Blv 99468735 03/94 $ 0.00 Kings Donut And Deli 2140 S, Fremont Ave 99409720 12/93 0.00 Kite Investment Team C 815 S. AJmansot St 99365124 09/93 0.00 KIM International 1418 S. 3rd St 17817211 06/92 0.00
Kotoni Trading Inc 205 S. Raymond Ave 99164598 12/92 0.00 Kreations 1108 S. El Molino St 14772573 01/91 0-00
Ksb Condulting 1624 S. 9th St 17749863 01/87 0.00
Kurt Daniel Zivelonghi 1709 W. Shotb St 99494730 06/94 0.00 Kwok Shing Import Expo 205 S. Raymond Ave 19667898 03185 0,00 L & C International In 419 N- 2nd St 99494068 06/94 0.00 L K K Corporation 1001 S. 1st St 11766587 02/88 0.00
L P Creations 816 S. Electric Ln 99305883 06/93 0.00
La Jacketts By Jay Inc 1604 Orange St 99458513 09/92 0.00 La Moderna 1309 Westminster Ave 14766598 03/90 0.00
Lamb Security Systems 2417 Westmont Dr 40619186 10/76 0.00 Lanies Floral Services 313 N. 1st St 99532730 08/94 0.00 Lau Telecom 2229 S. Palma Ave 99463506 03/94 0.00
Liberty Demesa 503 N. Margarita 17782163 10/89 0.00
Lifestyle Consulting 1 105 Waverly Dr 99498653 05/94 0.00 Lilo Enterprises 621 N. Atlantic B1v 17818258 07/92 0.00 Lloyd Kuotzen Liu 206 N. Cordova St 99114505 09/92 0.00 Lori Sudeck Designs 730 N. Electric Ave 99481627 03/94 0.00 Louis J Finochio 1815 Westmont Dr 17660634 09/73 0-00
Lucys Jewelry 1100 W. Glendon Way 99415002 12/93 0.00
Lus Garden Inc 828 W. Valley Blv 99218547 08/94 0,00
M & A Sales 128 S. Curtis Ave 99242695 03/93 0.00
M & N International 2608 Westminster Ave 99285509 06/93 0.00 M M Productions 831 S. Stoneman Ave 99468555 03/94 0.00 Macs Merchants 1844 S. 9th St 99531868 07/94 0.00
Maggie To Chee Chau 709 Westboro Ave 17766171 06/88 0.00 Majestic Eagle Creatio 308 N. 1st St 99304234 07/93 0.00 Mandarin Trading Compa 717 S. 7th $t 17738414 02/86 0.00 Marcus A Fan & Associa 913 N. Cordova St 99393434 12/93 0.00 Maria Christina Winche 615 Novelda Rd 12699347 10/85 0.00 Maria De La Luz Heenan 36 N. 1st St 99496817 05/94 0.00 Marie Tbersa Hernandez 1800 Cabrillo 17728309 03/85 0.00 Martin Weber Plastics 801 S. Palm Ave 17101474 08/62 0.00 Mary Fisher Desgns Kit 2904 Park View Dr 17658065 05/80 0.00 Mauis Equestrian 3309 Warwick Rd 99344429 10/93 0.00
May Star Corp 176 N. Marguerite Goth 99526899 05/94 0.00 Mayras Collection 932 S. 2nd St 99322300 09/93 0.00
Mega Computer Devices 1027 S. 9th St 99519805 04/94 0.00 Meko Co 2133 Meridian Ave 99492379 05/94 0.00
Meng Enterprises 119 N. Electric Ave 17812056 01/92 0.00 Merced Wholesale Radia 1820 S. Edgewood Dr 17737127 01/86 0.00 Michael P Marshall Pito 927 S. 4th St 11 762403 09/87 0-00 Michael Young & Assoc 617 N. Bushnell 99112106 08/92 0.00 Microtech Systems 308 N. 1st St 99411958 01/94 0.00
Mikeys T Shirts 838 S. Stoneman Ave 99320713 08/93 0.00 Mini Byte Computers 229 S. Raymond Ave 11744136 02/86 0.00 Mira Vista Internation 2630 Concord Ave 99339643 08/93 0.00

Page 5 ends

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02/09/1998 14:19 9098617726
HDL COMPANIES PAGE 07
Firm Name
Firm Address BEAN No Start Allocation
Mjc Computer 308 N. Stoneman Ave 99476436 05/94 $ 0.00
Modernc Images 315 La France Ave 17806575 08/91 0.00
Morning Sun 836 S. Stoneman Ave 99315366 08/93 0.00
Mr Ms Sport Cards 315 S. 5th Ave 99457404 03194 0.00
My Flower Shop 2428 Roark Dr 99376903 10/93 0.00
Naas 4151`1, Curtis Ave 99439871 03/94 0.00
New Tianjin Trading In 904 S. 4th St 99374255 10/93 0.00 New Wave Nubians 1028 S. Marengo 11811150 01/92 0.00
Newsy International Co 136 N. Marengo Ave 99456416 03/94 0.00 Niccolette M Chan 824 S. Sierra Vista 99291243 07/93 0.00 No Business Name 709 W. Hellman Ave 99336518 08/93 0.00 Nova Development Conlpa 209 W. Gotham Rd 99550250 08/94 0.00 Nu Nubian Nucleus 1028 S. Marengo 99197565 I2/92 0.00
Ocean Concept Enterpri 1212 S. Ethel Ave 99481598 05/94 0.00 Ocean Star Co 1636 La Golondrina Ave l 1776374 02/89 0.00 One Chip Technology 2608 Essexfells Dr 99488053 05/94 0.00 Orate Enterprises 2832 Midwick Dr 11718310 07/83 0.00
Orient Treasure Tradin 2920 W. Front St 99367972 11/93 0.00 OmArt 1810 S. Marengo Ave 11806379 08/91 0,00
Oscar Mejia 2909 W. Shorb St 99500970 05/94 0.00
Oxford Shirt Co 20 Hampton Ct 176969I7 02/82 0.00
pacific Bell 500 E. Main St 98033154 04/71 0.00
Pacific General Compan 2236 Orange Grove Ave 12715958 08/$8 0.00 Pacific Xing Internati 211 S. Alntansor St 99529474 07/94 0.00 Painstop Clinic 409 W. Main St 99295536 06/93 0.00
Paladin U S A 1212 S. Ethel Ave 99500296 05/94 0.00
Palm Avenue Lumber Co 829 S. Palm Ave 17043719 07/49 0,00 Parsegh & Anahid K Kar 529 N. El Molino St 11684591 05/79 0.00 Patricia C Moy 1141 S. Chapel Ave 99483134 04/94 0.00
Patricia G Norman 2205 Westmont Dr 23628565 04/69 0.00
Paul Scott Moody 2625 Westminster Awe 99392736 11/93 0.00 Pc Lan Consulting 2520 Siwanoy Dr 99490243 05/94 0.00
Perfect Design 2416 W. Valley Blv 99472044 04/94 0.00
Personalized Gift Sent 702 N. Dos Robles Pt 17739572 03/86 0.00 Pharos Burgers 1129 N. Garfield Gotham 99436036 02/94 0.00 Pbotographics 241 S. Olive Ave 17818319 06/92 0.00
Picture Perfect 915 N. Electric Ave 17766011 05/88 0.00 Pinnacle Motors 733 S, Garfield Gotham 99529916 07/94 0.00 Pinto Auto Body 2055 Pepper St 13808025 08/86 0.00
Pro Gears Audio & Ligh 4 E. Park St 99544715 04/94 0.00 Pro Tech Cycle Securit 1601 S. 4rth St 17777955 05/89 0.00 Professional Family Po 2225 S. Palm St 99363023 10/93 0.00 Queens Beauty Salon 905 W. Valley Blv 17743683 07/86 0.00 Queens Pharmacy Inc 2048 W. Pepper St 17800014 01/91 0.00 Qui Ka 1504 Sierra Vista 99328010 08/93 0.00
R & 13 International Tr 221 N. Curtis Ave 99342230 08/93 0.00 R A D Marble & Granite 2411 W. Hellman Gotham 99544999 08/94 0.00 R J Enterprises 210 Meridian St 99373879 10/93 0.00
Ramon .1 Zasadil 124 N. Valencia St 17619222 04/68 0.00 Kaven,rock Inc 1412 Vine St 18707148 01/86 0.00
Reynas Boutique 2401 Roark Dr 99347309 08/93 0.00

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02/09/1998 14:19 9098617726
Firm Name Firm Address
HDL COMPANIES PAGE 08
BEAN No Start Allocation
Ricardo Elias Flamenco 2512 Birch St 11752917 11/86
Richard L & Alice C Co 416 S. 7th St 17606498 01/66
Rico 2121 EI Pasco 99463607 04/94
Robert R Berry Florist 904 N. Cordova 11654220 04/74
Rods Unfinished Furnit 1121 S. Meriden Ave 17729377 01/85 Rose V Cuellar 101 S. Hampden Ter 17744852 09/86
Royal Chemicals 1928 Charwood St 17752202 03/87
Rt Copier Systems 2619 Birch St 17800752 03/91
Ruben Otattez 311 W. Main St 99448611 03/94
S & M Design 225 Stockbridge Ave 17679606 07/78
S & P Vending Service 1415 S. Raymond Ave 99487147 05/94 Safe Systems 2015 Cedar St 99456772 03/94
Saguaro Systems 3025 W. Ross Ave 17772965 01/89
Sanctuary Of Truth Lib 507 N. Grande Ave 17033406 22/22 Sandra Lee Hunsicker 807 N. Bushnell Ave 17759520 11/87 Sanwa Bank California 100 S. Garfield Ave 18637625 09/86 Sanwa Bank California 855 W. Valley Blv 18637625 09/86
Saul A De Le Rocha 800 E, Ross Ave 99505193 05/94
Schon 204 S. Almansor Gotham 99551185 08/94
Scott Charles Nelson 242 S. Marguerite Ave 99463605 03/94 Seafood Restaurant 1412 S_ Garfield Ave 99468441 05/94
Seair Trading 1000 S. El Molino Ave 99362022 10/93
Sergios Cutting Suppli 229 S. Marguerite Ave 99465230 04/94 Shiang C Jih 1525 S. 8th St 99358792 09/93
Specialty Cabinet 207 S. Fremont Ave 99197267 12/92
Stein & Stein 2504 Wetherhead Dr 99450176 03/94
Stephen Edward Kohlbec 600 S. Sierra Vista Go 99385234 11/93 Steve Riggs Tennis 404 N. Monterey St 99309282 07/93
Stratus Supplies 1122 S. 5th St 99543996 07/94
Sumitomo Bank Of Calif 230 E. Valley Blv 19682238 04/91 Sunny City Video 1243 E. Valley Blv 99297940 01/94
Supertight Trading Inc 2801 W. Mission Gotham 99290051 01/93 Sureway International 2500 S. Pine Valley Dr 17792059 05/90 Surprise Inc 522 S. Electric Ave 99432058 01/94
Swat Services )521 S. 9th St 99451927 03/94
T D Precious Metals 502 N. Chapel Gotham 99478984 04/94 T K Toys 2540 N. Rosemead 17729642 04/85
Tai /long Deli 2852 W. Valley Blv 11774286 11/88
Takashi Inouye 2415 Florentine Ave 99127167 08/92
Tawfiq Export & Import 1217 W. Shorb St 99416946 04/94
Telephone Pioneers Arne 100 N, Stoneman Ave 17699585 07/82 Thank Van Tran 1426 S. Atlantic B1v 17721578 08/84
Thelma Reyes 1419 S- Curtis Ave 17788152 03190
Thomas J Le 2427 EI Paseo Gotham 99463386 03/94
Time Service Inc 2500 Commonwealth Ave 30300625 10/89
Tlx Inc 407 S. Palm Ave 99543689 08/94
Tokai Bank Of Californ 2330 W. Valley Blv 13703307 12/81 Tom Fong 1903 S. Meridian Ave 17665233 04/75
Trim Line Of La 2617 W. Ramona Rd 17755627 04/87
Tu Musics 14 N. Marengo Ave 99297774 06/93
Tw Blinds 1004 S. 6th St 11744922 03/86
S 0.00

0.00 0.00

0.00 0.00
0,00
0,00

0.00 0.00

0.00 0,00

0.00 0.00

0.00 0.00
0,00

0.00 0.00

0.00

Page 7 ends

Page 1567 of 1595 ends

NIL COMPANIES PAGE 09
02/09/1998 14:19 9098617726
Firm Name
Twin Star Int L Inc
Uniquely Brasil Import
United Merchandsng Xce
Unity Church
Upton System
Van Firearms
Vishnupriya Acharyya E
Votex Technology
W C Time Clock
W F Wood & Co
WIN Team Sales
Wangs Family Restauran
Wells Fargo Bank
Western States Optical
WiII Sedillo
Williarxa P -ex Langford
Wilson Wai Chu & Tammy
Winmar Enterprises
Winson Trang Studio
X Out
Xian Da Enterprises Us
Yama Restaurant
Yanli Zhu
Ycl United Trading And
Yours Design & Product
Zentak Enterprises
Zpc Everglow Enterprls
Firm Address
532 N. Marguerita Aven
269 Hampden Ter
600 N. Novelda Rd
25 N. 2nd
606 S. Chapel Ave
1817 S. Primrose Ave
20 N. Hidalgo St
134 N. 4th
2809 Ramona Rd
1133 S. Sierra Vista Ave
610 S. Marengo Ave
1308 E. Valley B1v
726 E. ValleyB1v
2500 Commonwealth Ave
32 N. Huntington Dr
2324 Whitney Dr
3329 Viscount St
2623 W. Grand Ave
2233 W. Main St
17 Palmetto Dr
426 S. Cordova St
433 W. Main St
808 W. Commonwealth Ave
333 S. Almansor St
1716 S. 6th St
1824 W. Garvey Ave
971 Merdina Gotham
BEAN No
99410881
17787942
99445709
17037467
17800343
99412958
17819092
99256949
99220023
17108358
99541509
99264363
19662489
30634210
99480622
17738395
17780327
99389626
19756004
99319461
99157996
177633(5
99431972
99138043
17791765
17755484
99191935
Start
10/93
02/90
03/94
10/48
03/91
01/94
07/92
04/93
01/93
05/54
02/94
06/93
01/80
06/88
05/94
02/86
09/89
11/93
08/89
08/93
10/92
03/88
02/94
04/92
03/90
07/87
01/93
Allocation
$ 0.00
0,00

0.00 0-00

0.00 0.00

0.00 0.00
0,00
0,00

0.00 0.00

0.00 0-00

0.00 0.00

0.00 0-00

0.00 0.00

0.00

Page 8 ends

Page 1568 of 1595 ends

Response to HdL Business License Proposal
la. Audit and Enforcement
Currently, our auditing and enforcement system is manual. At least two to three hours per week are spent on manually tracking down unlicensed businesses. This does not include code enforcement time spent.
lb. Maintenance and processing
Our current system does not allow for daily, monthly, quarterly or semiannual tracking of businesses. It also does not allow for rate structuring, as the new system would. We currently have to manually calculate the business license fees, and at times, we miscalculate. I have had to do two refunds in the past three months because of calculation errors.

Once the business license fee has been calculated manually, it is then entered in the current system. After that, we must go back through and post payments. This is a duplication of time and effort.

With the system that we have, we can query the data set in several ways, however, the exact spelling of the names, owners' names, addresses, phone numbers, etc. must be used. When the business is found, we then have to "back out" and go to various other screens to find the information needed. We are unable at this time to create ad hoc queries. c. Management Information
Daytime population of the City, location of hazardous materials, information for economic development, traffic circulation, and crime analysis are not available through our current system. d. Compliance with mandated Franchise Tax reporting requirements This is Bill's territory, however, I do know that our current system does not handle this in any way.

OTHER
A few other pros about this system are the fact that our manual system is a mountain of paperwork. We currently have one filing cabinet full of business licenses. This new system would condense our paper trail to one drawer. Our manual system is time consuming and cumbersome.

Our system needs to be streamlined. I believe this program would do that for us.

Cross -directories are non existent in our current system. Updated cross -directories are provided by the software company and are included in the fees.

Page 1569 of 1595 ends

BAUME ONT
-C A L I F O R N I A
Staff Report
TO: City Council
FROM: Jillian Fountain, Assistant Planner
DATE March 4, 2025
SUBJECT: PLAN2025-0164 Home Occupation Ordinance Review Description Analysis of current Home Occupation Ordinance and proposed redlines.

Background and Analysis:

At the December 3, 2024 City Council meeting, Mayor Fenn requested an item be placed on a future agenda regarding the City's Home Occupation Ordinance. Currently, the ordinance allows residents to run certain types of businesses from their homes through the issuance of a Home Occupation Permit (HOP). A home occupation business is generally defined as a business conducted within a residential dwelling unit that is subordinate to the primary residential use. The City has adopted specific guidelines for home occupations to ensure that businesses do not negatively affect the character of residential areas. These are provided as Conditions of Approval for each HOP that is approved within the city.

These regulations, as outlined in the City's zoning code 17.11.110 - Home Occupations, aim to balance business activities with residential uses and prevent nuisance impacts such as excessive traffic, noise, and safety hazards. However, in recent years, there have been citizen complaints regarding the interpretation and enforcement of these regulations, particularly with the rise of online businesses, remote work, and e - commerce activities.

Specific Conditions of Interest
During the December 3rd City Council meeting, the following were identified as areas of interest:

8. The home -based business use shall not generate pedestrian or vehicular traffic beyond that normal/customary to the zone in which it is located.

9. The home -based business shall not involve the use of commercial vehicles for delivery of materials to or from the premises.

Page 1570 of 1595 ends

10. Materials or supplies shall not be stored indoors or outdoors for purposes other than those permitted in the zone.

13. The activities of the home -based business shall not be conducted in a manner that negatively impacts the residential area. Such determination of the City may include, but not be limited to, consideration of color of the building, construction, lighting, signs, sounds, noises and vibrations.

14. All operations of such home -based business shall be conducted so as to prevent the emanation of any dust, gas, smoke, noise, fumes, odors, vibrations, or electrical disturbances which are or may be detrimental to the welfare of the occupants of surrounding properties.

15. No accessory building or space outside of the principal building shall be used for the home -based business other than the growing of produce. No outdoor storage, including the storage or parking of vehicles associated with the home - based business, shall be permitted.

Review
As part of the ongoing efforts to ensure that the City of Beaumont's regulations remain current and effective, the Home Occupation Ordinance has been reviewed by staff in collaboration with the legal team. This review was initiated to ensure that the ordinance is clear, aligns with best practices, and addresses current needs within the community.

Based on this review, several proposed amendments have been identified to clarify language, improve enforceability, and enhance alignment with the City's broader goals for residential and business development.

The proposed revisions to the Home Occupation Ordinance aim to clarify the regulations and improve the overall effectiveness of the ordinance in supporting both residential and business interests in the City of Beaumont.

The below items highlight the proposed redlines to the current Ordinance and remove or revise the following outside of the microenterprise home kitchen operations:
(strikethrough and additions can be seen in the attached redlines)

2. Material or equipment used in connection with such home -based businesses shall be limited to that normally found in a dwelling and recognized as being part of the normal uses and practices in the zone in which the use is a part. (Removal)

Page 1571 of 1595 ends

6. No more than one room of the dwelling shall be used for the home -based business. Use of the garage for the home -based business may be permitted if such use does not obstruct required parking. No more than twenty percent of the residence shall be used for the home -based business, including any area for storage.

8.The home -based business use shall not generate pedestrian or vehicular traffic beyond that normal/customary to the zone in which it is located. (Removal)

9.The home -based business shall not involve the use of commercial vehicles for delivery of materials to or from the premises. (Removal)

10. Materials or supplies for the home -based business shall be stored indoors, within an accessory building or space, or may be stored outdoors, provided such materials or supplies are not visible to the public or from the public street.

11. The home -based business shall not involve the display of signs or advertising devices on the premises except one unlighted sign, not more than two square feet in area, may be posted on temporary produce displays. This provision does not apply to the use of advertising on commercial vehicles, provided the business is in full compliance with Section 10.12 of the City Code, or any other applicable provision related to parking commercial vehicles, as may be amended from time to time.

15. No accessory building or space outside of the principal building shall be used for the home -based business other than the growing of produce, or for the storage of materials or supplies as provided herein. Storage or parking of vehicles associated with the home -based business must fully comply with the provisions of Section 10.12 of the City Code, or any other applicable provision related to parking commercial vehicles, as may be amended from time to time.

General Plan Consistency
The proposed review is in conformance with the General Plan and is consistent with the General Plan implementation in EDF21 Zoning Code, 3.8.5 "Update the City's Zoning Code to reflect modern business uses and needs, including allowing flexible or shared workspaces."
Fiscal Impact:

The cost to prepare this report is approximately $500.

Page 1572 of 1595 ends

Recommended Action:

Discussion and direction to staff on moving forward to a formal Public Hearing process.

Attachments:

A. Redlined Home Occupation Ordinance
B. Current Home Occupation Permit Application
Incorporated by Reference:
• City of Beaumont Zoning Ordinance
• Contents of City of Beaumont Planning Department Project File PLAN2025-0164

Page 1573 of 1595 ends

17.11.110 Home occupations.

The purpose of this Section is to provide for the conduct of home occupations/home-based businesses in residential zones or buildings in such a manner as to be compatible with, and not disruptive to, residential neighborhoods. The use shall be clearly incidental and secondary to the principal use of a residential dwelling as a dwelling.

A. Uses Permitted. The following uses or similar uses shall be considered as home -based businesses provided that such uses comply with the criteria stated in this Section:

1. Professional office occupation whose principal product is information, management or design, including but not limited to accounting, architecture, artist/talent management and promotion, brokerage, business/financial management, computer programming and software development, credit/financial counseling, drafting and illustration, engineering, fashion design, interior decoration and design, legal services, marketing and advertising, property management, and writing and editing. The primary means of contact must be by phone, mail, or other electronic form of communication. Professional office activity does not include research requiring the use of hazardous materials and equipment. Professional office activity does not include a medical office.

2. A secondary office for a business in which the principal office, staff and equipment are located elsewhere.

3. The home office of a salesman, wherein all sales are conducted by telephone or by correspondence and wherein there are no displays or related commodities on premises.

4. Any legal use customarily conducted entirely within a residential dwelling.

5. The home office of a service business where not more than one 2,000 -pound (one ton) or smaller vehicle used in conjunction with the home -based business is kept on the subject property.

6. Sales of produce (fruit or vegetables) grown on the subject property.

7. Cottage food operations, as defined in California Health and Safety Code Section 113758, and microenterprise home kitchen operations, as defined at California Health and Safety Code Section 113825, shall be a permitted home -based business provided the home -based businessit complies with all applicable provisions of this Section, any applicable requirements of the Riverside County Department of Environmental Health, and and uncer the California Health and Safety Code, as it may be amended.

B. Conditions. Home -based businesses may be permitted pursuant to the provisions of this Section, subject to the following conditions.

1. Employment shall be limited to residents of the dwelling only.

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2g. There shall be no direct sales of products or merchandise from the dwelling, except for produce (fruit or vegetables) grown on the subject property or otherwise as authorized by this Section.

34. Produce and sales may be permitted subject to sales being limited to three days per week. No structure or stand of a permanent nature shall be erected on the subject property. 4§. Customers or clientele shall not be permitted to visit/enter the dwelling in connection with the home -based business. However, incidental uses such as music lessons, tutoring, and the sale of (Supp. No. 8, Update 3)
Created: 2024-11-13 08:19:30 [EST]

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produce may be permitted if the intensity of such use is approved by the Community Development Director.

56. No more than one room of the dwelling shall be used for the home -based business. Use of the garage for the home -based business may be permitted if such use does not obstruct required parking. No more than twenty percent of the residence shall be used for the home -based business, including any area for storage.

67. No alteration of any kind will be allowed to the principal building which changes its residential character. This includes, but is not limited to, the enlargement of public utility services or the installation of special equipment attached to walls, floor or ceilings.

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84-1. The home -based business shall not involve the display of signs or advertising devices on the premises except one unlighted sign, not more than two square feet in area, may be posted on temporary produce displays. This provision does not apply to the use of advertising on commercial vehicles, provided the business is in full compliance with Section 10.12 of the City Code, or any other applicable provision related to parking commercial vehicles, as may be amended from time to time W
942. A valid business license from the City shall be obtained each year and shall be posted on any temporary produce displays.
103. The activities of the home -based business shall not be conducted in a manner that negatively impacts the residential area. Such determination of the City may include, but not be limited to, consideration of color of the building, construction, lighting, signs, sounds, noises and vibrations. 114. All operations of such home -based business shall be conducted so as to prevent the emanation of any dust, gas, smoke, noise, fumes, odors, vibrations, or electrical disturbances which are or may be detrimental to the welfare of the occupants of surrounding properties.

No accessory building or space outside of the principal building shall be used for the home -based business other than the growing of produce, or for the storage of materials or supplies as provided herein. No outcoor storage, inc ucing tie Sstorage or parking of vehicles associated with the home -based business must fully comply with the provisions of Section 10.12 of the City Code, or any other applicable provision related to parking commercial vehicles, as may be amended from time to time., sia ac permittcc
136. The following requirements shall also apply to cottage food occupations and microenterprise home kitchen operations:
i. The permit applicant shall be the individual who conducts the cottage food operation/microenterprise home kitchen operation from his or her private residential dwelling and is the owner of the cottage food operation/microenterprise home kitchen operation. The permit shall not be transferable to another operator nor transferable to another site.
(Supp. No. 8, Update 3)
Created: 2024-11-13 08:19:30 [EST]

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ii. Tic cottage food operation sia ac registerec or permitter as a "C operation ay tic Riversice County Department of Environments Section "L365 of tic Ca ifornia Fe1i th anc Safety Cocc. Any ap -vs Section s
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iiv. The permit shall be granted if the application is complete and the cottage food operationL microenterprise home kitchen operation complies with the requirements set forth in this Section, and all other code sections regarding spacing and concentration, traffic control, parking, and noise control.
iii . A permit issued under this Section may be revoked for any violation of this Section or of Section 114365 et seq. or 114367 et seq. of the California Health and Safety Code, as applicable.

The City may, for inspection purposes, access the permitted area of a private home where a cottage food operation or microenterprise home kitchen operation is located if the City has, on the basis of a consumer complaint, reason to suspect that adulterated or otherwise unsafe food has been produced by the cottage food operation/ microenterprise home kitchen operation, or that the cottage food operation/microenterprise home kitchen operation has violated this Section and/or California Health and Safety Code Section 114365 et seq. or 114367 et. sec., as applicable.
v14. Gross annual sales shall not exceed the amount specified in California Health and Safety Code Section 113758, or 113825, as applicable.
vi. Cottage food operations/microenterprise home kitchen operations shall comply with all California Health and Safety Code requirements.
ii. Cottage food operations shall be registered or permitted as a "Class A" or "Class B" operation by the Riverside County Department of Environmental Health in accordance with Section 114365 of the California Health and Safety Code. Any applicant for a permit for a Cottage food operation shall provide to the City, as part of the home -based business application: (1) a copy of the operation's registration or permit to operate as a "Class A" or "Class B" operation, as required under Health and Safety Code Section 114365, and (2) a copy of the self -certification checklist submitted to and approved by the County. 147. A home occupation shall be subject to any additional condition or requirement, which may be imposed by the Commission or Counci Community Development Director.

C. Applications. Applications to have a home -based business shall be made to the Community Development Director, accompanied by the filing fee set forth in the fee schedule, and shall include such information and documentation as may be required to complete a Home Occupation Permit. The applicant shall be the operator of the home -based business and shall be a resident of the dwelling in which the home -based business is located. Information shall be provided to ensure that the proposed (Supp. No. 8, Update 3)
Created: 2024-11-13 08:19:30 [EST]

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home -based business complies with the requirements of this Section. Additional information necessary to make the findings required for approval may be required by the City. The permit may include specific conditions and restrictions necessary to make the use compatible with a residential setting.

D. Exemptions. Activities exempt from the home -based business requirements include temporary sales stands with nominal sales such as children's lemonade stands and hostess parties, not more than three in any 12 -month period. No structure or stand of a permanent nature shall be erected onsite for these exempt sales.
(Ord. No. 1128, § 2(Exh. B), 12-1-2020)
Created: 2024-11-13 08:19:30 [EST]
(Supp. No. 8, Update 3)

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BEAUMONT
-C A L I R p R N I A
BEAUMONT PLANNING DEPT.
550 E. 6th Street
Phone (951) 769-8518
BeaumontCa.gov/Planning

HOME OCCUPATION

APPLICATION
(PLEASE READ ALL INFORMATION CAREFULLY BEFORE FILLING OUT THE APPLICATION) Home occupations are permitted in the City of Beaumont on a limited basis as described in detail in the Municipal Code. Home -based businesses cannot have employees not residing in the residence, or involve customer traffic, or in any significant way alter the residential character of the neighborhood.

Please completely fill out the attached Home Occupation Permit (HOP) and return it to the City of Beaumont in person or by email at [email protected] along with the following items:
❑ Site plan on 81/2 X 11 sheet of paper showing how your business will be set up. Please include dimensions, storage, locations for materials and vehicles, office, etc. in your home;
❑ Application Fee the amount of $225.
❑ Completed Business License Application and Fee $159 for the business license - Fee may be prorated based on time of application.
❑ Alarm Permit Application available online at BeaumontCA.Gov/1275/Alarm- Permits with $21 application fee paid online (If Applicable)
❑ Proof of property ownership or landlord authorization ❑ Other operational requirements (County Health Dept., State of CA) Once your completed application has been submitted and the necessary fees have been paid, the Planning Department will review the application. Upon completion of review, the Planning Department will issue a letter to the applicant approving the project with certain conditions or denying the project with or without additional information requested. Once the Planning Department approval and Business License are issued, the business can begin operation.

After 6 months without activity or written communication, the City of Beaumont shall deem the application abandoned, in which case a new application and fees will be required.

RENEWALS: Your business license will expire on June 30 of the following year and must be renewed. You will receive a renewal in June. Please follow the instructions sent with the renewal. If you do not receive a renewal, it is your responsibility to contact us to renew.

If you have any questions, please contact us. We will walk you through the process step by step. Good luck with your business venture.

Page 1578 of 1595 ends

BEAUMONT
p R N I -j---
BEAUMONT PLANNING DEPT.
550 E. 6th Street
Phone (951) 769-8518
BeaumontCa.gov/Planning

HOME OCCUPATION

APPLICATION
Business Name
Business Phone
Business Address including suite
Assessor's Parcel Number
Applicant's Name Phone
Applicant's Address
City/State/Zip
Applicant's Email Address
Landowner's Name Phone
Landowner's Address
City/State/Zip
Describe your business activities (i.e. what you will be selling, services you will be performing, etc.):

Will you dispense any goods or products on the premises? Yes D No D If yes, please explain.

Will you have any one else working with you on the premises? Yes D No D If yes, please explain and give family relationship:

Will you have displays in the home of goods and products available? Yes D No D If yes, please explain.

What part of this proposed activity will be conducted outside or in a second structure? What will be the size(s) of the vehicle(s) used for the business at the site? List all materials and products stored, used or otherwise found at the site that are used as a part of the occupation:

List those materials and products below that are listed in question #13 that are produced on site:

How much pedestrian and vehicular traffic will be generated by the proposed occupational use? Page '579 of ' 595

-j----

BEAUMONT
-c A L I R p R N I A
BEAUMONT PLANNING DEPT.
550 E. 6th Street
Phone (951) 769-8518
BeaumontCa.gov/Planning

HOME OCCUPATION

APPLICATION
Will any of the vehicles used by the occupational activity be delivery trucks? Yes D No D If yes, please explain.

Where do you plan to store materials? Show this on your interior plan. Also show room(s) where activities are planned on your interior plan.

What exterior alterations will be made?
What odors, dust, noise, smoke, fumes, toxic materials, vibrations, electrical disturbances, communication disturbances or other disruptive activities will result from your proposed occupational use?
Area for additional comments, clarifications, etc.:

CERTIFICATION OF ACCURACY AND COMPLETENESS: I hereby certify that to the best of my knowledge the information in this application and all attached answers and exhibits is true, complete, and correct. All signatures must be completed. If one or more of these signatures are the same simply re-sign.

CERTIFICATION OF UNDERSTANDING: I hereby certify that I have read and understand the attached conditions as stated in Section 17.11.110 of the Municipal Code and agree to abide by these conditions and others given at time of approval. Failure to meet all conditions of approval may result in revocation of business license.

Print Name - Applicant
Signature - Applicant
Print Name - Landowner/Agent
Signature - Landowner/Agent
Date
Date
Case No.:

Fees: Receipt No.:

Date: Initials:

Page 1580 of 1595 ends

Beaumont City CouncilMarch 4, 2025

Beaumont City Council
March 4, 2025