Beaumont City Council
March 18, 2025

Bond No. 30240653
Premium: $167 / Annually
PW #:

File #:

PERFORMANCE BOND
Exhibit "C"
WHEREAS, the City Council of the City of Beaumont, State of California, and Tri Pointe Homes IE-SD, Inc. (hereinafter designated as "Principal") have entered into Agreement To Provide Security For Improvements For Tract Map Or Parcel Map Or Plot Plan, dated, 20 , whereby Principal agrees to install and complete certain designated public improvements itemized and described on Tract Map, Parcel Map or Plot Plan No. ** , which is hereby incorporated herein and made a part hereof; and **Sundance Tract 31468-4 & 31468-5 (Cherry Avenue Street Light Plans) WHEREAS, Principal is required under the terms of the said agreement to furnish a bond for the faithful performance of said agreement.

NOW, THEREFORE, we, the Principal and The Continental Insurance Company as Surety, are held and firmly bound unto the City of Beaumont (hereinafter called "City"), in the penal sum of Forty -Five Thousand and no/100 dollars ($ 45,000.00 ) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our hens, successors, executors and administrators, jointly and severally, firmly by these presents.

The condition of this obligation is such that if the above bounded Principal, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the said agreement and any alteration thereof made as therein provided, on his or their part to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

As part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment therein rendered.

The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement or to the work or to the specifications.
[signatures on following page]

Performance Bond No. 30240653
Page Two (2)
IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on the 14th day of March , 20 25 .

FA
-# (Seal) (Seal)
45� •• Q7.!'
••H•M..

The Continental Insurance Company Tri Pointe Homes IE-SD, Inc.

SURETY PRINCIPAL
By:

Name: Michelle Haase
Title: Attorney -in -Fact
Address: 2 Park Plaza, Suite 400
Irvine, CA 92614
By:

Name:

Title:

By:

Name:

Title:

Address: 1250 Corona Pointe Court, Suite 600
Corona, CA 92879

ALL SIGNATURES MUST BE ACKNOWLEDGED BEFORE A NOTARY PUBLIC

ALL- PURPOSE

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

State of Califomia }
County of Orange
}
On MAII N before me, Sarah E. Campbell, Notary Public
Mein roe and lIN of err clear)
personally appeared Michelle Haase
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of Califolli at the foregoing paragraph is true and correct. l SARAH A w ,s`• ��a E. CAMPBELL
Notary Public • Caltfernia
Los Angeles CouttY
Commission t 2491647
My Comm. Expires Jun 27. 2028

ADDITIONAL OPTIONAL INFORMAT ON INSTRUCTIONS FOR COMPLETING THIS FORM This form complies with current California stabiles regarding notary wording and ifieeeded should be coeepleeedmid attedsedto the document Acknol vedgenn from other states may be completed for de meets being sent to that state so long as the wording does not require the California notary to violate California notary law. • State and County information must be the State and County where the document signals) personally appeared before the notary public for acknowledgment • Date of nolvization mist be the dads that the signer(s) personally appeared which must also be the same date the adoeowlydgsent is competed. • The notary public mist paint his or her name as it appeaus within his or her caroarissioa followed by a comma and +•R your title (notary publl e). • Print the same(s) of dollomot signrz(s) who personalty appear at the time of notarindion.
• Indicate the correct singular or plural foram by crossing off incorrect fames (Le. h&she lsay,— is /ew ) or ceding the correct foram. Failure to correctly indicate this itfamatiai may lead to rejection of document recording. • The notary seal impression must be clear and photographically reproducible_ Impression must not cover text or lines. If seal inpresttioe smudges, re -seal if a sufficient errs plaits, otherwise complete a different tadnowiedgment form. • Signature of the moray public must match the signature an file with the odes of the county clerk.
<+ Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a dint:rent document 9 Indicate title or type of attached document, welsher of pages and date. +� Indicate the rapacity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary). • Securely attach this document to the signed document with a staple.

DESCRIPTION OF THE ATTACHED DOCUMENT
(Toe ordesafpion of aaa0led domed)
(TIe or description of attaCbed docUfler1 c toner l)
Number of Paget Document Date

CAPACITY CLAIMED BY THE SIGNER
❑ Individual (s)
O Corporate Officer `
Cn6
❑ Partner(s)
❑ Attomey-in-Fad
❑ Trustee(s)
O Other
2015 Version w wt.NataryClasses.com 800-873-9865

POWER OF ATTORNEY APPOINTING INDIVIDUAL ATTORNEY -IN -FACT Know All Men By These Presents, That The Continental insurance Company, a Periasyhtutia msuraoce company, is a duly organized and existing insurance company haring its principal office in the City of Chicago, and State of Illinois, and that it does by virtue ofthe signature and seal herein affixed hereby make, constitute and appoint
Marina Tapia, Janina Monroe, Michelle Haase, Timothy J Noonan, Edward C Spector, Aldan Smock, Jaren A Marx, Erin Brown, Charles R Teter ID, Sinione Gerhard, B Airman, K D Wapato, Rachel A Mullen, D Garcia, Sandra Corona, Jennifer Ochs, Ethan Spector, Sarah Campbell, Individually
of Irvine, CA, its true and lawful Attorney(s)-in-Fact with full power and authority hereby conferred to sign, seal and execute for and on its behalf bonds, undertakings and other obligatory instruments of similar nature
- In Unlimited Amounts -
and to bind diem thereby as fully tad to the same extent as if such instruments were signed by a daily authorized officer of the insurance company and all the ads of said Attorney, pursuant to the authority hereby given is herby ratified and confirmed.

This Power of Attorney is made and executed pursuant to and by authority of the Authorizing By -Laws and Resolutions printed at the bottom of this page, duly adopted, as radiated, by the Board of Directors of the insurance company.

L Witness Whereof; The Continental Insurance Company has caused these presents to be signed by its Vice President and its corporate seal to be hereto alined on this 29th day of April, 2024.
t
State of South Dakota, County of Minnehaha, ss:

On this 29th day of April, 2024, before me personally came Larry Kasten to me known, who, being by me duly sworn, did depose and say: that he resides in the City of Sioux Falls, State of South Dakota; that he is a Vice President of The Continental Insurance Company, a Pennsylvania insurance company, described in and which executed the above instrument that he knows the seal of said insurance company; that the seal affixed to the said instrument is such corporate seal; that it was so affixed pursuant to authority given by the Board of Directors of said insurance company and that he signed his name thereto pursuant to like authority, and acknowledges same to be the act and deed of said insurance company.

The Continental Insurance Company,
O.

Vice President
M. BENT
nauav Maattc
? v5o A
My Commission Expires March 2, 2026
j Larry Kasten 7
M. Bent Notary Public

CERTIFICATE
L Paula Kolsrud, Assistant Secretary of The Continental Insurance Company. a Pennsylvania issuance company, do hereby certify that the Power of Attorney herein above set forth is still m fora, and further certify that the By -Law and Resolutions of the Board of Directors of the insurance company printed below this certificate are still in force. In testimony whereof] have heretwtc and affixed the seal of the said insurance company this 14th day ofMarch, 2025. ,r}t„`y;: The Continental Insurance Company
Y)oetlAus3
Paula Kolsrud Assistant Secretary
Authorizing By -Laws and Resolutions
ADOYI'hD BY THE BOARD OF DIRECTORS OF THE CONTINENTAL INSURANCE COMPANY:

This Power of Attorney is made and executed pursuant to and by authority of the following resolution duly adopted by the Board of Diredon of the Company at a mating held on May 10, 1995.
"RESOLVED: That any Senior or Group Vice Presided may authorize an officer to sign specific documents, agreements and instrur ones on behalf of the Company provided that the name of suds authorized officer and a description of the documents, agreements or instruments that such officer may sign will be provided in writing by the Senior or Group Vice President to the Secretary of the Company poor to such execution becoming ef%arve.

This Power of Attorney is signed by Larry Karsten, Vice President, who has been authorized pursuant to the above resolution to execute power of attorneys on behalf of The Continental Insurance Company.

This Power of Attorney is signed and sealed by facsimile under and by the authority of the following Resolution adopted by the Board of Directors of the Company by unanimous written consent dated the 256 day of April, 2012. "Whereas, the bylaws of the Company or speecafic resolution of the Board of Directors has authorized various officers (the -Authorized Officers") to execute various policies, bonds, undertakings and other obligatory instruments of bare name; and Whereas, from time to time, the signature of the Authorized Officers, b addition to being provided m original, hard copy format, may be provided via f csimik or otherwise in an electronic forrnat (collectively, "Electronic Signatures), Now therefore be it resolved: that the Electronic Signature of any Authorized Officer shall be valid and binding on he Company "
This Power of Attorney may be signed by digital signature and seated by a digital or otherwise electronic-formattcd corporate seal under and by the authority of the following Resolution adopted by the Board of Directors of the Company by unanimous written consent dated the 276 day of April, 2022:
"RESOLVED: That it is in the best interest of the Company to periodically ratify aid confirm any corporate documents signed by digital signatures and to ratify and confirm the use of a digital or otherwise electronic -formatted corporate seal, each to be considered the act and deed of the Company." Fcrrn F8850-6-2023

Bond No. 30240653
Premium is included in Performance Bond.

PAYMENT BOND
WHEREAS, the City Council of the City of Beaumont, State of California, and Tri Pointe Homes IE-SD, Inc. (hereafter designated as "the Principal") have entered into Agreement To Provide Security For Improvements For Tract Map Or Parcel Map Or Plot Plan, ** dated , 20� whereby Principal agrees to install and complete certain designated public improvements which is hereby incorporated herein and made a part hereof; and **Sundance Tract 31468-4 and 31468-5 (Cherry Avenue Street Light Plans) WHEREAS, under the terms of the said agreement, the Principal is required before entering upon the performance of the work, to file a good and sufficient payment bond with the City of Beaumont to secure the claims to which reference is made in Title 3 (commencing with Section 9000, et seq.) of Part 6 of Division 4 of the Civil Code of the State of California.

NOW, THEREFORE, the Principal and the undersigned as corporate surety, are held firmly bound unto the City of Beaumont and all contractors, subcontractors, laborers, materialmen, and other persons employed in the performance of the said agreement and referred to at Title 3 (commencing with Section 9000, et seq.) of Part 6 of Division 4 ofthe Civil Code in the sum of Forty -Five Thousand and no/100 dollars ($ 45,000.00 ), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this work or labor, that the Surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attomey's fees, incurred by the City in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000, et seq.) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond
Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect.

The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration, or addition.
[signatures an following page]

Payment Bond 30240653
Page Two (2)
IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on the 14th day of March , 20 25 .
• V
The Continental Insurance Company
SURETY
By:

Name: Michelle Haase
Title: Attorney -in -Fact
Address: 2 Park Plaza, Suite 400
Irvine, CA 92614
(Seal)
Tri Pointe Homes IE-SD, Inc.

PRINCIPAL
By:

Name:

Title:

By:

Name:

Title:

Address: 1250 Corona Pointe Court, Suite 600
Corona, CA 92879

ALL SIGNATURES MUST BE ACKNOWLEDGED BEFORE A NOTARY PUBLIC

ALL- PURPOSE

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

State of California }
County of Orange
On MAR 14 2025 before me,
}
Sarah E. Campbell, Notary Public
(Fire insert wine ace sae erne cacao
personally appeared Michelle Haase
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

ADDITIONAL O
(Notary Public Seat)
SARAH E. CAMPBELL
Notary Public - California
Las Angeles County I
Commission i 2491647 lr
My Comm. Expires Jun 27.2028

TIONAL INFORMAT ON INSTRUCTIONS FOR COMPLETING THIS FORM

DESCRIPTION OF THE ATTACHED DOCUMENT
(The or description of attached doomed)
(Tile ardestaWun of *ached document cordoned)
Number of Pages Document Date

CAPACITY CLAIMED BY THE SIGNER
❑ Individual (s)
❑ Corporate Officer
Crtle)
❑ Partner(s)
❑ Attomey-in-Fact
❑ Trustee(s)
❑ Other
2015 Version wwv_NotaryClasses cam 800-873.9865
0 This farm complies with current California statutes regarding notary wording erg ifneeded skald be completed and attached to the docruaennt A.cbnhwsagarrts from other stales may be con:platedfar documents being sent to that slate so long as the wording does not require the California notary to violate California notary la+v. • State and County information must be the Slate and County where the document signer(s) personally appeared before the notary public for adaiowiedgmcnt • Date of notarization must be the date that the signe(s) personally appeared which must also be the same date the acknowledgment is completed. • The notary public roust prid his or her name es it appears within his o her commission followed by a corm and then your title (notary public). • Print die name(s) of document signer(s) who personally appear at the time of notarization.
• Indicate the correct singular or plural fonts by crossing off incorrect forms (i.e. hdaielakeyis/are) or circling the correct forms. Failure to correctly indicate this information may lead to rejection of documatt recording. • The notary seal impression must be claw and photogrnphically reproducible.

Impression must not cover text or lines. If seal impression stanches, re -sal if a sufficient area pamits, otherwise complete a different acknowledgment form • Signature of the notary public must mater the signature on file with the office of the county clerk.
tiS Additional information is not required but could help to ensue this acknowkdgmad is not maimed or attached to a different document. • Indicate title or type of attached document, number of pages and date. .y Indicate the ci ity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (Le_ CEO, CFO, Secretary)_ • Securely attach this document to the signed document with a staple.

POWER OF ATTORNEY APPOINTING INDIVIDUAL ATTORNEY -IN -FACT Know AI Men By Thew Presents, That The Continental Insurance Company, a Pennsylvania insurance company, is a duly organized and existing insurance company having its principal office in the City of Chicago, and Stare of Illinois, and that it does by virtue of the signature and seal herein affixed hereby make, constitute and appoint
Marina Tapia, Janina Monroe, Michelle Haase, Timothy J Noonan, Edward C Spector, Aidan Smock, Jaren A Marx, Erin Brown, Charles R Teter HI, Simone Gerhard, B Aleman, K D Wapato, Rachel A Mullen, D Garcia, Sandra Corona, Jennifer Ochs, Ethan Spector, Sarah Campbell, IndMdually
of Irvine, CA, its true and lawful Attorneys) -in -Fact with full power and authority hereby conferred to sign, seal and execute for and on its behalf bonds, undertakings and other obligatory instruments of similar nature
- In Unlimited Amounts -
and to bind them thereby as hilly and to the same extent as if such instruments were signed by a duly authorized officer of the insurance company and all the acts of said Attorney, pursuant to the authority hereby given is hereby ratified and confirmed.

This Power of Attorney is made and executed pursuant to and by authority of the Authorizing By -Laws and Resolutions printed at the bottom of this page, duly adopted, as radiated, by the Board of Directors of the insurance company.

L Witness Whereof The Continental Insurance Company has caused these presents to be signed by its Vice President and its corporate seal to be hereto affixed on this 24th day of April, 2024.

1.1 State of South Dakota, County of Minneheha, ss:

On this 29th day of April, 2024, before me personally came Larry Kasten to me known, who, being by ice duly sworn, did depose and say: that he resides in the City of Sioux Falls, State of South Dakota; that he is a Vice President of The Continental Insurance Company, a Pennsylvania insurance company, described in and which executed the above instrument; that he knows the seal of said insurance company, that the seal affixed to the said instrument is such corporate seal; that it was so affrced pursuant to authority given by the Board of Directors of said insurance company and that he signed his name thereto pursuant to like authority, and acknowledges same to be the act and deed of said insurance company, The Continental Insurance Company,
Vice President
M. BENT
soc r•unnc umnm unison f
My Commission Expires March 2, 2026
/)2 6..„f
M. Bent Notary Public

CERTIFICATE
1, Paula Kolsrud, Assistant Secretary of The Continental Insurance Company, a Pennsylvania insurance company, do hereby certify that the Power of Attorney herein above set forth is still in force, and further certify that the By -Law and Resolutions of the Board of Directors of the insurance company printed below this certificate ere still in force. In testimony whereof I have bereuntc and affixed the seal of the said insurance company this 14th day of March, 2025. 3{ ms`s The Continental Insurance Company
•'fit r Paula Kolsrud Assistant Secretary
Authorizing By -Laws sad Resolutions
ADOPTED BY THE BOARD OF DIRECTORS OF THE CONTINENTAL INSURANCE COMPANY:

This Power of Attomey is made and executed pursuant to and by authority of the following resolution duly adopted by the Board of Directors of the Company at a meeting held on May 10, 1995.
"RESOLVED That any Senior or Group Vice Pnsidcrat may authorize an officer to sign specific documents, agreements and instruments on behalf of the Company provided that the name of such authorized officer and a description of the documents, agreements or instruments that such officer may sign wilt be provided m writing by the Senior or Grasp Vice President to the Secretary of the Company prior to such execution becoming effective.

This Power of Attorney is signed by Larry Kasten, Vice President who has been authorized pursuant to the above resolution to execute power of attorneys on behalf of The Continental Insurance Company.

G2La& KoPDw6
This Power of Attorney is signed and sealed by facsimile under and by the authority of the following Resolution adopted by the Board of Directors of the Company by unanimous written consent dated time 25" day of April, 2012. "Whereas, the bylaws of the Company or specific resolution of the Board of Directors has authorized various officers (the "Authorized Officers") to execute various policies, bonds, undertakings and other obligatory instruments of lie nature; and Whereas, from time to time, the signature of the Authorized Officers, in addition to being provided in original, bard copy format, may be provided via facsimile or otherwise in an electronic format (collectively, -Electronic Signatures"), Now therefore be it resolved: that the Electronic Signature of any Authorized Officer shall be valid mad binding on the Company."
This Power of Attorney may be signed by digital signature and sealed by a digital or otherwise electronic -formatted corporate seal under and by the authority of the following Resolution adopted by the Board of Directors of the Company by tmanbmous written consent dated the 276 day of April, 2022:
"RESOLVED That it is in the best interest of the Company to periodically ratify and confirm any corporate documents signed by digital signatures and to ratify and confirm the use of a digital or otherwise electronic -formatted corporate seal, each to be considered the ad and deed of the Company." Form F6850-6-2023

RECORDING REQUESTED BY:

CITY CLERK
WHEN RECORDED RETURN TO:

City Clerk
City of Beaumont
550 E. 6th Street
Beaumont, CA 92223

SPACE ABOVE THIS LINE FOR RECORDER'S USE

CITY OF BEAUMONT

SUBDIVISION IMPROVEMENT AGREEMENT
TRACT or PARCEL MAP NO. 34862
DATE OF AGREEMENT: March 14, 2025
NAME OF SUBDIVIDER: Tri Pointe Homes IE-SD, Inc , a Califomia Corporation , (hereinafter referred to as "Subdivider").

NAME/NUMBER OF DEVELOPMENT:
residential
Sundance SCE Easement
subdivision consisting of
, originally approved on
Tots,
, and Tentative Tract/Parcel ("Tract/Parcel" or
"Tentative Tract/Parcel Map") , originally approved on: .

FINAL TRACT/PARCEL MAP

RECORDED ON

APPROVED ON

AS INSTRUMENT NUMBER
("Final Tract Map/Final Parcel Map").

PROPERTY SUBJECT TO AGREEMENT: The real property which is the subject of this Agreement is located in the City of Beaumont, County of Riverside and is described in Exhibit "A" attached hereto and incorporated herein (hereinafter the "Property").

EST. TOTAL COST OF
PUBLIC IMPROVEMENTS:
$ 481,358.57
EST. TOTAL COST OF
PRIVATE IMPROVEMENTS:
$
EST. TOTAL COST OF
MONUMENTATION:
(see Exhibit "B")
(see Exhibit "B")
(see Exhibit "B")
BOND NUMBERS: 30240652
LETTER OF CREDIT NUMBERS:

FINANCIAL INSTITUTION: The Continental Insurance Company

THIS SUBDIVISION IMPROVEMENT AGREEMENT ("Agreement") is made and entered into by and between the City of Beaumont, a California municipal corporation (hereinafter referred to as "City"), and Tri Pointe Homes IE-SD, Inc , a Califomia Corporation (hereinafter referred to as "Subdivider"). City and Subdivider are sometimes referred to hereinafter individually as a "Party", and collectively as the "Parties".

RECITALS
A. Subdivider is the owner of certain real property located in the City of Beaumont legally described on Exhibit "A" attached hereto and incorporated and made part of this Agreement by this reference (the "Property").

B. The conditions of approval of the above referenced Tentative Tract Map and any related entitlements, which are hereby incorporated herein by this reference, require that prior to the issuance of building permits, the Subdivider and the City shall enter into a subdivision improvement agreement, secured with sufficient security, as a guarantee of the construction and completion of all public and private improvements and land development work required by said conditions of approval and by the City subdivision laws and codes.

D. In consideration of the approval of a final map by the City Council, Subdivider desires to enter into this Agreement, whereby Subdivider promises to install and complete, at Subdivider's own expense, all the public improvement work required by City in connection with the proposed subdivisoion. Subdivider has secured this Agreement by improvement security required by the Subdivision Laws.

E. Improvement Plans (the "Plans") for the construction, installation, and completion of the public and private improvements are being or have been prepared by Subdivider and will be subject to approval by the Director of Engineering/Public Works ("City Engineer"). The City has adopted standards (hereinafter "Standards") for the construction and installation of improvements within the City, and the Plans will be prepared in conformance with the Standards in effect on the date of the approval of the Application. The Plans will be on file in the Office of the City Engineer and are incorporated into this Agreement by this reference as if set forth fully herein. All references in this Agreement to the Plans shall be deemed to include reference to any specifications for all of the improvements as approved by the City Engineer.

F. An estimate of the cost for construction of the public and private improvements and performing the land development work according to the Plans has been made and approved by the City Engineer. The estimated cost of these improvements is set forth on Page One (1) of this Agreement, and the basis for the estimate is attached hereto as Exhibit "B" and incorporated and made part of this Agreement by this reference. The amounts of the Improvement Securities required to be posted with this Agreement are also based upon the estimate in Exhibit "B".

G. For the purposes of this Agreement, the term "Public Improvements" means all those improvements within the Tract/Parcel intended for transfer or conveyance to the City or other public agency. The estimated cost of their construction is included in the above estimate included herein as Exhibit "B".

NOW, THEREFORE, in consideration of the issuance of the Final Tract map, Subdivider and City hereby agree as follows:

1. Subdivider's Obligation to Construct Improvements.
(a) In constructing and installing the improvements, Subdivider shall comply with all of the requirements and conditions of approval of in the Tentative Tract Map, related entitlements as well as the provisions of the Municipal Code and Subdivision Laws. (b) Subdivider shall complete, at its own expense, all the public and private improvements and related work on the Development, as required by the conditions of approval of the Tentative Map and related entitlements in conformance with the approved Plans and City Standards, including without limitation, those improvements set forth in Exhibit "B" (hereinafter collectively the "Improvements") within twenty-four (24) months of the date of this Agreement, unless a time extension is granted by the City as authorized by Section 20 of this Agreement.
(c) Notwithstanding the time limits specified in Section 1(b) above, no single family dwelling unit or group of units shall be given final inspection and clearance for occupancy by City unless the private and public streets providing access to and fronting such units are completed, the final lifts of pavement on the streets are in place, and all wet and dry utility services (e.g. sewer, water, electrical power, telephone, gas, etc.) to such units are in place and are operational.
(d) Subdivider shall furnish the necessary materials for completion of the Improvements in conformity with the Plans and City Standards.
(e) Subdivider shall acquire and dedicate, or pay the cost of acquisition by the City, of all rights -of -way, easements and other interests in real property required for construction or installation of the Improvements, free and clear of all liens and encumbrances.

Subdivider's obligations relating to acquisition by City of off -site rights -of -way, easements and other interests in real property shall be subject to a separate agreement between Subdivider and City. Subdivider shall also be responsible for obtaining any public or private drainage easements or authorizations therefor to accommodate the Development. (f) Subdivider shall furnish and install all monuments, stakes and property corners on the lots and streets in the Property as specified on the final recorded tract maps for the Development in accordance with the provisions of the Subdivision Laws, and shall submit centerline tie sheets to City, within thirty (30) days after completion of the Improvements, or as specified in any separate monument agreement with the City, but in any event prior to their acceptance by the City.

2. Improvement Securities.
(a) Subdivider agrees to secure this Agreement with good and sufficient improvement securities in a form approved by the City Attorney (referred collectively hereinafter as "Improvement Securities" and individually as "Improvement Security") to guarantee the construction and completion of all the improvements in the Development. All such improvement securities shall be posted with the City prior to the City's final building inspection and issuance of a Certificate of Occupancy for any single family dwelling constructed by Subdivider, its agents, assigns or contractors, on any lot within the Development, as described in Exhibit "A". Said securities are estimated at this time in Exhibit "B" to be in the following amounts, and shall be for the purposes described as follows:
(i) Four Hundred Eighty One Thousand Three Hundred FRyEight and 57/100 DOLLARS ($481,358.57) to ensure faithful performance of the construction and installation of the public and private Improvements required by this Agreement ("Performance Security"), which amount is 100% of the estimated cost of the Improvements as set forth in Exhibit "B"; and (ii) and 57/100 DOLLARS ($481,358.57) to
secure payment to any contractor, subcontractor, persons renting equipment or furnishing labor materials for the Improvements required to be constructed or installed pursuant to this Agreement ("Labor & Materials Security"), which amount is one -hundred percent (100%) of the estimated cost of the Improvements; and (iii) and 00/100 DOLLARS ($ XX,XXX.XX) in the form
of a Warranty Bond or cash deposit with the City to guarantee or warranty the Improvement work done pursuant to this Agreement for a period of one (1) year following acceptance/certification thereof by City, against any defective work or labor done or defective materials furnished ("Warranty Security"). The Warranty Security is 10% of the estimated cost of the Performance Security amount described above, and such Warranty Security must be provided by Subdivider to City prior to the City's release of any bonds or Improvement Securities filed with this Agreement. (iv_) and 00/100 Dollars ($X,XXX.XX) in the form of a cash deposit, which is 100% of the estimated cost of setting all final subdivision monuments, boundary corners, front and rear lot corners and centerline ties not previously set or submitted on the lots and streets within the Property as described in Exhibit "A", and for the preparation and recordation of any related Certificate of Correction, as required by Section 66469 of the State Subdivision Map Act. (b) The Improvement Securities required by this Agreement shall be kept on file with the City Clerk. If surety bonds are used, they must be issued by a surety company currently admitted to transact surety insurance business in California by the California Department of Insurance, with a Best's Insurance Guide rating of no less than A-. The terms of any documents evidencing such Improvement Securities as set forth in this Section 2 or

referenced on Page One (1) of this Agreement, are incorporated into this Agreement by this reference as if set forth fully herein. If any Improvement Security is replaced by another type or kind of approved Improvement Security, subject to the approval of the form thereof by the City Attorney, the replacement shall be filed with City Clerk and, upon filing, shall be deemed to have been made a part of and incorporated into this Agreement. Upon filing of a satisfactory replacement Improvement Security with the City Clerk, the former Improvement Security shall be released.
(c) Subdivider agrees to keep its Improvement Securities in full force and effect until they are reduced or released by City. If any Improvement Security provided by Subdivider is cancelled or terminated for any reason by the action of a surety, financial institution or other party, it shall be the responsibility of the Subdivider to immediately, upon written notice from City, provide a substitute Improvement Security which conforms to all the requirements of this Section 2 in the same amount or amounts. (d) Any additions, changes, alterations, or modifications of this Agreement or to the Plans, Specifications and Improvements referred to herein, including any extension of time within which the work hereunder may be completed, shall not release or exonerate any surety or sureties on the Improvement Security given in connection with this Agreement.

3. Alterations to Improvement Plans; Modification of City Standards. (a) Any changes, alterations or additions to the Plans or to the Improvements, not exceeding 10% of the original estimated cost of the Improvements, which are mutually agreed upon by City and Subdivider, shall not require Subdivider to increase any Improvement Securities provided under this Agreement. In the event such changes, alterations, or additions exceed 10% of the original estimated cost of the Improvements, Subdivider shall provide additional Performance Security as required by Section 2 of this Agreement for 100% of the total estimated cost of the Improvements as changed, altered, or amended, minus any completed partial releases allowed by Section 7 of this Agreement.

Subdivider shall also provide additional Labor & Materials Security as required by Section 2 of this Agreement for 50 % of the total estimated cost of the Improvements as changed, altered, or amended.
(b) Subdivider shall construct all Improvements in a good and workman like manner and in accordance with the City Standards in effect as of the date of the Approval Action specified on Page One (1) hereof. The City reserves the right to modify the Standards applicable to the Subdivision and this Agreement, when necessary to protect the public safety or welfare or to comply with applicable State or Federal law or City zoning ordinances. If Subdivider requests and is granted an extension of time for completion of the Improvements, the City may apply the Standards in effect at the time the extension is g ranted.

4. Modification of Drainage Plan. Subdivider agrees that if during the course of construction and installation of Improvements it shall be determined by the City Engineer that revision of the

drainage plan is necessary in the public interest, it will undertake such design and construction changes as may be reasonable and as are indicated by the City Engineer and approved by City.

Said changes, if any, shall be confined to the Property.

5. Reserved.

6. Inspections; Final Acceptance and Certification of Improvements. (a) Subdivider shall at all times maintain proper facilities and safe access for inspection of the Improvements by City inspectors and to the shops wherein any work is in preparation.
(b) Upon completion of the Improvements covered in this Agreement, the Subdivider shall request a final inspection by the City Engineer or his/her authorized representative.

Following receipt of such request, the City Engineer shall inspect the Improvements, make certain determinations and take certain actions as follows:
(i) If the City Engineer, or his/her authorized representative, determines that the Public Improvements requiring acceptance by another public agency have been completed in accordance with this Agreement, then the City Engineer shall request said agency to make a final inspection of such improvements and certify to the City that such improvements have been completed and installed to the satisfaction of said agency. Upon receipt of such certification, the City Engineer may release or reduce the securities held for such improvements. Any certification and/or acceptance of the Public Improvements shall not constitute a waiver of any defects by City.
(ii) For Improvements not requiring dedication to or acceptance by the a public agency (the "Private Improvements"), the City Engineer or his/her authorized representative shall inspect such improvements, and/or shall have the discretion to accept a certification from Subdivider's registered civil engineer stating that the Private Improvements have been completed in accordance with the approved Plans, City Standards and the Tentative Map. If the City Engineer, or his/her authorized representative, makes a finding, based on his/her own inspection (and/or any certification submitted by Subdividers registered civil engineer) that the Private Improvements have been installed and constructed in accordance with the approved Plans, City Standards and the Tentative Map, the City Engineer shall recommend certification of the completion of the Private Improvements by placing an item on the next most convenient City Council agenda requesting certification and authorization to release the Improvement Securities. Said determination by the City Engineer and agendization of the certification and release shall not be unreasonably withheld or delayed.
(c) Subdivider shall bear all costs of inspection and certification of the Improvements.

7. Release of Improvement Securities.
(a) The Performance Security shall be fully released only upon the final completion and certification of all Private Improvements and Public Improvements. Partial releases may be permitted subject to the provisions of Subsections (a)(i) and (a)(ii) hereof. Upon final completion of the Public and Private Improvements under this Agreement, and after City Council acceptance/certification, the City shall file a Notice of Completion in accordance with the California Civil Code.
(i) The City Engineer may release a portion of the Performance Security, as work on the Improvements progresses, upon written application thereof by the Subdivider; provided, however, that no such release shall be considered by City for an amount less the cost estimate of the remaining work does not exceed twenty percent (20%) or less of the estimate of the total amount of work to be done as shown in Exhibit "B". Upon approval of a partial release or the reduction of Performance Security, the City shall not reduce such Performance Security to an amount less than two hundred percent (200%) of the value of the work remaining to be done. City and Subdivider agree that not more than two requests for reduction or partial release of Performance Security shall be considered between the start of construction and the completion and acceptance/certification of the Improvements by the City.
(ii) In no event shall the City Engineer authorize a release or reduction of the Performance Security which would reduce such security to an amount below that required to guarantee the completion of the Improvements and any other obligations imposed upon Subdivider by this Agreement.
(iii) No partial reduction or release of the Performance Security shall constitute or be construed as the City's acceptance or certification of any Improvements or related work. Such partial reductions or releases (if any) will merely reflect that a certain portion of the required work has been done.
(b) The Labor & Materials Security shall, ninety (90) days after the City's recordation of the Notice of Completion described in Subsection 7(a), be reduced to an amount equal to the total claimed by all claimants for whom liens have been filed and of which notice has been given to City, plus an amount reasonably determined by the City Engineer to be required to assure the performance of any other obligations secured by the Labor & Materials Security and to cover related legal costs. The balance shall be released upon the settlement of all claims and obligations for which the Labor & Materials Security was given. If no claims or liens have been filed and no notice has been given to City within said ninety (90) day period, then the Labor & Materials Security shall be released in full. (c) The Warranty Security shall not be released until after the expiration of the one-year (1 -year) warranty period and until any claims filed during the warranty period have been settled. As provided in Section 11, below, the warranty period shall not commence until final acceptance/certification of the Improvements and related work by the City Council.

(d) The Monumentation Security may be released in full by the City Engineer in accordance with the terms of the separate monument agreement with the City, or if there is none, upon submittal of the following:
(i) a written certification from the professional engineer or surveyor responsible for setting the monuments stating that all the final monuments for the Subdivision have been set in accordance with the Professional Land Surveyors Act and the Subdivision Map Act, and that the professional engineer or surveyor has been paid in full by Subdivider for such services; and
(ii) centerline tie sheets prepared in a manner acceptable to the City Engineer showing the locations of centerline monuments in existing public or private streets; and
(iii) any Record of Survey required by this Agreement has been filed with the County of Riverside and recorded.
(e) The City may retain from any Improvement Securities released an amount sufficient to cover costs and reasonable expenses and fees, including reasonable attorneys' fees.

8. Injury to Public Improvements, Public Property or Public Utilities Facilities.

Subdivider shall replace or repair or cause the repair or replacement of any and all public or private improvements, public utilities facilities and survey or subdivision monuments which are destroyed or damaged as a result of any work under this Agreement. Subdivider shall bear the entire cost of replacement or repairs of any and all public or private improvements or utility property damaged or destroyed by reason of any work done under this Agreement, whether such property is owned by the United States or any agency thereof, or the State of California, or any agency or political subdivision thereof, or by the City or any public or private utility corporation or by any combination of such owners. Any repair or replacement shall be made to the reasonable satisfaction, and subject to the approval of the City Engineer and the owner of any such public or private improvement.

9. Permits. Subdivider shall, at Subdivider's expense, obtain all necessary permits and licenses for the construction and installation of the Improvements, give all necessary notices and pay all fees and taxes required by law.

10. Notice of Breach/Default of Subdivider.
(a) Default of Subdivider shall include, but not be limited to: (1) Subdivider's failure to timely complete construction of the Improvements; (2) Subdivider's unwarranted failure to timely cure any defect in the Improvements; (3) Subdivider's failure to perform substantial construction work for a period of twenty (20) consecutive calendar days after commencement of the work; (4) Subdivider's insolvency, appointment of a receiver, or the filing of any petition in bankruptcy either voluntary or involuntary which Subdivider fails to discharge within thirty (30) days; (5) the commencement of a foreclosure action against the

Property or a portion thereof, or any conveyance in lieu or in avoidance of foreclosure; (6) Subdivider's failure to keep the Improvement Securities in full force and effect; (7) Subdivider's failure to notify the City of any sale, transfer or other disposition of the Property to a purported new Subdivider; (8) Subdivider's failure to maintain insurance; or (9) the failure of Subdivider or Subdivider's contractors, subcontractors, agents or employees to comply with any other terms and provisions of this Agreement. (b) In the event of any such default, the City Engineer or the City Council may serve written notice to Subdivider specifying in reasonable detail the nature of the default.

Subdivider shall have thirty (30) days from receipt of said notice to cure the default; provided that, if the default is not reasonably susceptible to being cured within said thirty (30) days, Subdivider shall have a reasonable period of time to cure the default so long as Subdivider commences to cure the default within said thirty (30) days and diligently prosecutes the cure to completion.
(c) If following service of such written notice of default, Subdivider fails to cure or commence curing the default to the satisfaction of City within the cure period specified in Subsection 10(b), above, the City Engineer or the City Council may serve notice of Subdivider's default upon Subdivider and where applicable Subdivider's surety, or the holder(s) of any other Improvement Securities, in accordance with the notice provisions set forth in Section 22 of this Agreement.
(d) In the event of service of the notice of default specified in Subsection 10(c), above, Subdivider's surety shall have the duty to take over and complete the Improvements and related work required under this Agreement; provided; however, that if the surety, within twenty (20) days after the serving upon it of such notice of default, does not give the City written notice of its intention to take over the construction of said Improvements or does not, within ten (10) days after giving City notice of such election, commence to complete the Improvements, City may take over the work and prosecute the Improvements to completion, by contract or by any other method City may deem advisable, for the account and at the expense of Subdivider, and Subdivider's surety shall be liable to City for any costs or damages occasioned City thereby; and, in such event, City, without liability for so doing, may take possession of, and utilize in completing the Improvements, such materials, appliances, plant and other property belonging to Subdivider as may be on the site of the work and necessary for the completion of same.
(e) The City reserves to itself all remedies available to it at law or in equity for Subdivider's default under this Agreement. The City shall have the right, subject to this Section, to draw upon or utilize the appropriate Improvement Securities to mitigate City's damages in event of default by Subdivider. The right of City to draw upon or utilize the Improvement Securities is additional to and not in lieu of any other remedy available to City. It is specifically recognized that the estimated costs and amounts of Improvement Securities may not reflect the actual cost of construction or installation of the Improvements, and therefore, City's damages for Subdivider's default shall be measured by the actual cost of completing the required Improvements. The sums provided by the

Improvement Securities may be used by City for the completion of the Improvements in accordance with the Plans.
(f) Failure of Subdivider to comply with the terms of this Agreement, including but not limited to, construction of all the Improvements as set forth herein and as required by the Tentative Map, shall constitute Subdivider's consent to: (1) the filing by City of a notice of violation against all of the lots in the Subdivision; (2) withholding of Building permits, utility connections and/or Certificates of Occupancy. The remedies provided by this Subsection (f) are in addition to and not in lieu of any other remedies available to City at law or in equity. Subdivider agrees that the choice of remedy or remedies for Subdivider's default or breach shall be in the sole discretion of City.
(g) In the event that Subdivider fails to perform any obligation hereunder, Subdivider agrees to pay all costs and expenses incurred by City in securing performances of such obligations, including costs of suit and reasonable attorney's fees. (h) The failure of City to take an enforcement action with respect to a default, or to declare a default or breach, shall not be construed as a waiver of that default or breach, or of any subsequent default or breach of Subdivider. Any failure by the City to enforce any provision of this Agreement shall not be construed as a waiver of the right to compel enforcement of such provision(s) and further shall not act to release any surety from its obligations under this Agreement.

11. Warranty.
(a) For a period of one (1) year after final acceptance/certification by the City Council of the Improvements, Subdivider shall guarantee or warranty all the Improvements against any defective work or labor done or defective materials furnished. If within the warranty period any work relating to the Improvements or any part of thereof furnished, installed, constructed or caused to be done, furnished, installed or constructed by Subdivider fails to fulfill any of the requirements of this Agreement or the Plans, Subdivider shall without delay and without any cost to City, commence to repair or replace or reconstruct any defective or otherwise unsatisfactory part or parts of the work or structure within thirty (30) days of receiving written notice from City of the defect and diligently prosecute the repair or replacement work to completion.
(b) Should Subdivider fail to act promptly or in accordance with the repair/replacement requirements set forth herein, Subdivider hereby authorizes City, at City's option, to perform the repair/replacement work twenty (20) days after mailing written notice to Subdivider and to Subdivider's surety, and Subdivider agrees to pay City for the cost of such work.
(c) Should the City determine that an emergency or a threat to the public safety and welfare exists from the condition of the Improvements which require repairs, replacements or remedial measures to be made before Subdivider can be notified, City may, in its sole

discretion, make the necessary repairs or replacements or perform the necessary work and Subdivider shall pay to City the cost of such repairs.

12. Subdivider Not Agent of City. Neither Subdivider nor any of Subdivider's agents, officers, employees, or contractors are or shall be considered to be agents of City in connection with the performance of Subdivider's obligations under this Agreement.

13. In'ury to Improvement Work; Risk of Loss. Until such time as the Public Improvements are accepted by City, Subdivider shall be responsible for and bear the risk of loss to any of the Public Improvements constructed or installed and shall be responsible for the care, maintenance of and any damage to such Public Improvements. Neither City, nor any of its agents, officers or employees shall be liable or responsible for any accident, loss or damage, regardless of cause, happening or occurring to the Public Improvements specified in this Agreement prior to the completion and acceptance of the Public Improvements by City. All such risks shall be the responsibility of and are hereby assumed by Subdivider. Subdivider is responsible for and shall bear the risk of loss for all Private Improvements at all times.

14. Other Agreements. Nothing contained in this Agreement shall preclude City from expending monies pursuant to agreements concurrently or previously executed between the Parties, or from entering into agreements with other Subdividers for the apportionment of costs of water and sewer mains, or other improvements, pursuant to the provisions of City ordinances providing therefor, nor shall anything in this Agreement commit to any such apportionment.

15. Subdivider's Obligation to Warn Public During Construction. Until final acceptance/certification of the Public Improvements pursuant to Section 6(b)(i), and final certification of construction of the Private Improvements pursuant to Section 6(b)(ii), Subdivider shall give good and adequate warning to the public of each and every dangerous condition existent in said Improvements and will take all reasonable actions to protect the public from such dangerous conditions in, on or around the work site.

16. Vesting of Ownership. Upon acceptance of the Public Improvements and related work on behalf of the City, and after recordation of the Notice of Completion, ownership of the Public Improvements constructed within the Private streets in the Development shall vest in the name of the City, or applicable government agency or utility company, and any improvement constructed on any public street pursuant to this Agreement shall vest in City.

17. Indemnity/Hold Harmless.
(a) Neither the City, nor any official, officer, employee, contractor or agent thereof, shall be liable for any injury to persons or property occasioned by reason of the acts or omissions of Subdivider, its agents, subcontractors or employees in the performance of this Agreement. Subdivider hereby agrees to, and shall defend and hold harmless City, its elective and appointive boards, commissions and officers, and its agents, contractors and employees from and against any and all claims, demands, causes of action, damages, costs, expenses, actual attorneys' fees, consultant's fees, expert's fees, losses or liability, in law or in equity, of every kind and nature whatsoever arising out of or in connection with

Subdivider's operations, or any subcontractor's operations, to be performed under this Agreement for Subdivider's or subcontractor's tort negligence including active or passive, or strict negligence, including but not limited to personal injury including, but not limited to bodily injury, emotional injury, sickness or disease, or death to persons and/or damage to property of anyone, including loss of use thereof, caused or alleged to be caused by any act or omission of Subdivider or any subcontractor, or anyone directly or indirectly employed by any of them or anyone for the full period of time allowed by law, with the exception of the sole negligence or willful misconduct of City. (b) Subdivider's indemnity, defense and hold harmless obligations under this Section 17 are not conditioned or dependent upon whether City, or its elective and appointive boards, commissions and officers, or its agents, contractors and employees, prepared, supplied or reviewed any Plans or related specifications in connection with the Improvements, or whether City or Subdivider has insurance or other indemnification covering any of these matters.
(c) Subdivider's obligation to indemnify, hold harmless and defend City shall extend to injuries to persons and damages to or alleged taking of property resulting from the design or construction of the Improvements. City's acceptance and/or certification of the Improvements shall not constitute an assumption by City of any responsibility or liability for any damage or alleged taking of property referenced herein. City shall not be responsible or liable for the design or construction of the Improvements constructed or installed pursuant to the Plans, unless the particular Improvement design was required by City over the written objection of Subdivider, which objection stated that the Improvement design was potentially dangerous or defective and set forth a safe and feasible alternative design.

After City's acceptance/certification of the Improvements, Subdivider shall remain obligated to correct or eliminate all dangerous conditions caused by defects in design or construction; provided, however, that the Subdivider shall not be responsible for routine maintenance.

Subdivider acknowledges and agrees that Subdivider shall be responsible and liable for the design and construction of the Improvements and other work done pursuant to this Agreement, and except as may be provided above, City shall not be liable for any acts or omissions in approving, reviewing, checking, correcting or modifying any Plans, or in inspecting, reviewing or approving any work or construction of Improvements. Subdivider's Improvement Securities shall not be required to secure Subdivider's obligations under this Section 17.

18. Sale or Disposition of Subdivision; Assignment.
(a) Subdivider acknowledges and agrees that sale, transfer or other disposition of the Property prior to completion of the Improvements required hereunder will not relieve Subdivider from the obligations set forth in this Agreement, and Subdivider shall be required to notify City sixty (60) days in advance of any sale or transfer of ownership of the Property or any proposed assignment of this Agreement. If Subdivider sells or otherwise transfers the Property to any other person or entity prior to final completion of the Improvements, or wishes to assign this Agreement, Subdivider may request a novation of this Agreement and a substitution of Improvement Securities by the new owner or proposed Page12of19

assignee (hereinafter collectively for purposes of this Section, "Successor"). Subdivider shall be required to provide any documentation reasonably required by City to determine the appropriateness of any proposed Successor.
(b) Any proposed Successor must demonstrate to the City its ability to perform and complete the obligations of Subdivider under this Agreement, as determined by objective standards of financial capability, creditworthiness and experience required for such performance, and the City shall have the right to compel the Successor to disclose all documents, information and other material which, in City's sole reasonable discretion, may establish or tend to establish that the proposed Successor meets the standards specified herein. Following approval by City and full execution of a novation (or other such release or assignment and assumption agreement(s) entered into by Subdivider, Successor and City), posting of satisfactory Improvement Securities and submission of required insurance by Successor, City shall release or reduce the securities posted by Subdivider in accordance with the provisions of such novation and release Subdivider of its obligations under this Agreement. Nothing in the novation (or other such release or assignment and assumption agreement entered into by Subdivider, Successor and City) shall relieve Subdivider of its obligations under any other Section of this Agreement for work or Improvements performed by Subdivider prior to the novation.

19. Time of the Essence. Time is of the essence in this Agreement.

20. Time for Completion of Improvements; Extensions.
(a) Subdivider shall commence and diligently prosecute to completion construction of all the Improvements required by this Agreement. The time for completion of the Improvements as specified in Subsection 1(b) of this Agreement may be extended as permitted by City ordinance. The City Manager may grant an extension of time for such period as may be in the public interest upon the showing of the Subdivider of good cause.

Any such extension granted shall be subject to the limitations and conditions set forth in Subsections 20(b) and (c), below, and shall be made by a writing executed by the in a form as approved by the City Attorney.
(b) Any such extension may be granted without notice to Subdivider's surety and shall not affect the validity of this Agreement or release the surety or sureties on any Improvement Securities given for this Agreement. However, City reserves the right to require as part of any extension amendment a written assurance from the surety acceptable to the City Attorney that the Improvement Securities required by Section 2 of this Agreement shall remain enforceable throughout the term of any extension. (c) The City Manager shall be the sole and final judge as to whether or not good cause has been shown to entitle Subdivider to an extension. In addition, the time for completion of the Improvements shall be extended for any delay resulting from an act of City, or from an act of God, which Subdivider could not have reasonably foreseen, or by storm or inclement weather which prevents the conducting of work, or by strikes, boycotts, similar actions by employees or labor organizations, which prevent the conducting of work, and

which were not caused by or contributed to by Subdivider, provided that Subdivider provides City with written notice of the delaying event within fifteen (15) days of the commencement of the delay. In the event of such delaying event, Subdivider shall use all reasonable efforts to remedy same and resume completion of the Improvements as promptly as practicable.
(d) As a condition of granting an extension of time to complete the Improvements required by this Agreement, the City Manager may require Subdivider to furnish new or additional Improvement Securities guaranteeing performance of this Agreement as extended in an increased amount as necessary to compensate for any increase in construction costs as determined by the City Engineer.

21. Notice. All notices required by or provided for under this Agreement shall be in writing and delivered in person or sent by certified or registered mail, postage prepaid and addressed as provided in this Section. Notice shall be effective on the date it is delivered in person, or, if mailed, on the date of deposit in the United States Mail. Notices shall be addressed as follows unless a written change of address is filed with City:

Notice to City:

Attn: City Manager
With a Copy to:

Notice to Subdivider:

City of Beaumont
550 E. 6th Street
Beaumont, CA 92223
John Pinkney, Esq.

SBEMP
1800 East Tahquitz Canyon Way
Palm Springs, CA 92262

22. Severability. The provisions of this Agreement are severable. If any portion of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect unless amended or modified in writing by the mutual consent of the Parties.

23. Captions. The captions of this Agreement are for convenience and reference only and shall not define, explain, modify, limit, exemplify, or aid in the interpretation, construction or meaning of any provisions of this Agreement.

24. Insurance.
(a) Subdivider shall, at all times during the construction of the Improvements, obtain, carry, maintain, and keep in full force and effect, at its sole cost and expense, policies of insurance of the types and in at least the minimum amounts described below:
(i) Commercial General Liability policy with a minimum combined single limit of One Million Dollars ($1,000,000) for each occurrence and Two Million Dollars ($2,000,000) in the aggregate for bodily injury, death, personal injury and property damage arising out of or in connection with the activities of the Subdivider and its contractors and subcontractors in performance of the work under this Agreement.

Coverage shall be at least as broad as Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 0001) and shall, in addition to the other coverages specified in this subsection, include coverage for independent contractors, ongoing operations, products and completed operations, contractual liability and personal and advertising injury.
(ii) Commercial Vehicle/Automotive Liability policy covering personal injury and property damage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit, covering any vehicle utilized by Subdivider, its officers, agents, employees, subcontractors or independent contractors in performing the work required by this Agreement.
(iii) Workers' Compensation and Employer's Liability policy for all Subdivider's employees, with Workers' Compensation limits as required by State law and Employer's Liability coverage of $1,000,000 per accident for bodily injury or disease.

In case any work is sublet, Subdivider shall require any contractor or subcontractor similarly to provide Workers' Compensation and Employer's Liability Insurance for all contractor's or subcontractor's employees, unless such employees are covered by the protection afforded by Subdivider.
(1) In case any class of employees engaged in work under this Agreement at the work site(s) is not protected under any Workers' Compensation law, Subdivider shall provide and shall cause each contractor or subcontractor to provide, adequate insurance for the protection of employees not otherwise protected.
(2) Subdivider hereby indemnifies City for any damages or claims resulting from failure of either Subdivider or any contractor of subcontractor to take out or maintain such liability or Workers' Compensation insurance. (b) Insurer Rating; Acceptability. Except as set forth otherwise herein, the policies required by this Section shall be issued by a California -admitted insurer with a rating of at least a A-; VII in the latest edition of Best's Insurance Guide. A Commercial General Liability policy issued by an insurer that is on the California Department of Insurance's List of Approved Surplus Line Insurers ("LASLI") will be acceptable, if no coverage from an Page15of19

admitted insurer can be obtained by Subdivider, and further provided that such insurer maintains a Best's rating of at least "A-; X" and remains on the LASLI during the term hereof. Workers' Compensation coverage issued by the State Compensation Insurance Fund shall be acceptable if no other coverage can be obtained by Subdivider, and further provided such insurer remains admitted in California and is otherwise financially acceptable to City.
(c) Deductibles. Any deductibles or self -insured retentions must be declared in writing by Subdivider to City and subsequently approved by City prior to its execution of this Agreement and prior to commencement of any work hereunder. At City's option, Subdivider shall either reduce or eliminate the deductibles or self -insured retentions with respect to City, or Subdivider shall procure a bond guaranteeing payment of losses and expenses.
(d) Certificates and Endorsements Verification. Subdivider shall submit to the City original certificates of insurance and endorsements evidencing the coverages required by this Section. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. The City reserves the right to require complete, certified copies of all required insurance policies at any time and/or to require Subdivider to provide reports or status updates to evidence compliance of its contractors and subcontractors with the provisions of this Section. (e) Required Endorsements.
(i) The Commercial General Liability and Commercial Vehicle/Automotive Liability policies are to contain or be endorsed to contain the following provisions:
(1) Additional Insureds. The City of Beaumont, its officials, officers, employees, agents and independent contractors shall be named as additional insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Subdivider; and with respect to liability arising out of work or operations performed by or on behalf of the Subdivider including materials, parts or equipment furnished in connection with such work or operations.
(2) Primary Insurance. For any claims related to this project, the Subdivider's insurance coverage shall be primary insurance as respects the City of Beaumont, its officials, officers, employees, agents and independent contractors. Any insurance or self-insurance maintained by the City of Beaumont, its officials, officers, employees, agents and independent contractors shall be excess of the Subdivider's insurance and shall not contribute with it. This endorsement is not applicable to the Commercial Vehicle/Automotive Liability Policy.

(3) Waiver of Subrogation. Endorsements waiving all rights of subrogation against the City of Beaumont, its officials, officers, employees, agents and independent contractors shall be provided.
(ii) The Workers' Compensation policy shall be endorsed to waive all rights of subrogation against the City of Beaumont, its officials, officers, employees, agents and independent contractors.
(f) Other Insurance Requirements. All policies required under this Agreement shall contain provisions stating that such policies cannot be canceled or reduced except on at least thirty (30) days prior written notice to Subdivider (ten (10) days' notice for cancellation due to non-payment). Subdivider further agrees to: (1) provide to City copies of any notices relating to cancellation or reduction of insurance within two (2) days of receipt; and (2) cause all certificates of insurance to include language indicating that the issuers or producers of such policies will endeavor to provide copies of any such notices directly to City.
(g) Commencement of Work. Subdivider shall not commence work under this Agreement until Subdivider has obtained all insurance required pursuant to this Section, and such insurance has been obtained by Subdivider and approved by City; nor shall Subdivider allow any contractor or subcontractor to commence work on the Improvements until all similar insurance required of the contractor or subcontractor has been obtained.

Certificates, endorsements, and where applicable, full copies of policies shall be maintained on file with the City Clerk.
(h) Higher Limits. If Subdivider maintains higher limits than the minimums specified in this Section 25, the City requires and shall be entitled to coverage for the higher limits maintained by Subdivider. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

25. Attorneys' Fees. In the event any action at law or in equity is brought to enforce the terms of this Agreement, the prevailing Party shall be entitled to litigation costs and reasonable attorneys' fees.

26. Incorporation of Recitals. The Recitals to this Agreement are hereby incorporated into in the terms of this Agreement.

27. Entire Agreement. This Agreement constitutes the entire agreement of the Parties and supersedes any prior written or oral agreements between them with respect to the subject matter hereof. All modifications, amendments, or waivers of the terms of this Agreement must be in writing and signed by the appropriate representatives of the Parties.

28. Governing Law; Venue. This Agreement shall be governed by and interpreted in accordance with the laws of the State of California. In the event that suit shall be brought by either Party to this contract, the Parties agree that venue shall be exclusively vested in the State courts

of the County of Riverside, California or where appropriate, in the United States District Court, Southern District of California, Riverside, California.

29. Runs with the Land; Recordation.
(a) The Parties agree that the terms and provisions set forth in this Agreement shall be deemed provisions, terms and/or covenants running with the Property in accordance with applicable law, including without limitation, California Civil Code section 1468, and shall pass to and be binding upon the heirs, successors and assigns of the Parties to this Agreement, and on any successor owner of the Property.
(b) The provisions of Subsection 29(a) notwithstanding, Subdivider shall remain jointly and severally liable with its heirs, successors, assigns or successor owners of the Property for the responsibilities and liabilities imposed by this Agreement unless a novation or assignment agreement is executed in accordance with the provisions of Section 18 of this Agreement.
(c) Upon execution, this Agreement shall be recorded in the Official Records of Riverside County, and by such recordation, it is the intention of the Parties to give notice to and bind their successors, heirs and assigns hereto.

30. Authority of Executing Parties. Each person executing this Agreement on behalf of a Party represents and warrants that such person is duly and validly authorized to do so all behalf of the entity it purports to bind and that he/she is authorized to enter into contracts on behalf of Subdivider. The undersigned, on behalf of Subdivider, binds Subdivider, its partners, successors, executors, administrators, and assigns with respect to the terms and provisions of this Agreement.

IN WITNESS WHEREOF, this Agreement is executed by the Parties hereto on the date above first written.

Subdivider:
e:TotrAe
City:

CITY OF BEAUMONT
a Municipal Corporation
Signature � �' Signature:

City Manager
Print Name: Cc -c \ CsTevnipe-
Attachments: Exhibit A
Exhibit B
Exhibit C
ATTEST:

City Clerk
APPROVED AS TO FORM:

John Pinkney, City Attorney
APPROVED AS TO CONTENT:

Robert Vestal, Dir. Of Engineering/Public Works
Legal description of Property
Cost estimate(s)
Performance & Payment Bond OR Cash Bond
(Proper Notarization of Subdivider's Signature is required and shall be attached)

EXHIBIT A

LEGAL DESCRIPTION

FOR THE SUBJECT PROPERTY

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF

BEAUMONT, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

APN 419-020-065, 419-020-079, 419-211-009 & 419-020-080 djmlagreel Declaration of Covenant and Waiver 6-14-06

CITY OF BEAUMONT PUBLIC WORKS DEPARTMENT

CONSTRUCTION COST WORKSHEET
PARCEL MAP OR TRACT NO.:

DATE:

Sundance SCE Easement

2.19.2025
PP, CUP NO.:

N/A
BY: SJA Landscape Architecture, Inc.

IMPROVEMENTS

FAITHFUL PERFORMANCE

LABOR & MATERIALS SECURITY
( of Estimated Construction Costs)
100%
100%
Landscape Imrpovements
Sewer
Total
Warranty Retension %
Street/Drainage Plan Check Fees =
Sewer Plan Check Fees =
Street Inspection Fees =
Sewer Inspection Fees =
481,358.57
Not Used
481,358.57
48,135.86
City of Beaumont

PUBLIC WORKS
APP
Reviewed by:
03/12/20 5 4:47:26 PM
DESIGN ENGINEERS CALCULATIONS OF B tPROVEMENT BONDING COSTS Construction items and their quantities as shown on attached sheets are accurate for the improvements required to construct the above project and the mathematical extensions using City's unit costs are accurate for determining bonding, plan check and inspection costs.

Above amounts do n include additional 20% for recordation prior to having signed plans Above amounts do not n include additional 20% for recordation prior to having signed plans 8 -Feb -24
Landscape Architect's Signature Date
Mark Lloyd
Name typed or printed
FORM $ UNIT COSTS REVISED 09/06
Landscape Architect's Stamp
xx*FxPLEASE READ INSTRUCTIONS BELOW"'

1. Quantities to be taken from improvement plans, Unit costs to be as provided on "City of Beaumont Improvement Requirement Worksheet".

2. Show Bond Amounts to the nearest $500.

3. For construction items not covered by "City of Beaumont Improvement Worksheet", Design Engineer is to provide his opinion of construction cost and use of that cost. If City of Beaumont Unit Costs are determined to be too low in the opinion of the Design Engineer, the higher costs as provided by the Design Engineer should be used.
3/7/2025

CITY OF BEAUMONT PUBLIC WORKS DEPARTMENT

IMPROVEMENT REQUIREMENT WORKSHEET
PROJECT:

Sundance SCE Easement
DATE: 2.19.2025

LANDSCAPE IMPROVEMENTS
QTY.

UNIT
ITEM

UNIT COST
AMOUNT
30,150
Sf
Rehabilitate Existing Asphalt Trail (Cherry to Startlight) $

3.25 $ 97,988
25,400
Sf
10' Width Asphalt Trail, 3" on Native (Starlight to
Highland Springs)
$

3.00 $ 76,200
'
22,220
Sf
Meandering 12" to 36" Width DG, Rolled -Edge
(Starlight to Highland Springs)
$

2.00 $ 44,440
2,215,897
Sf
Smooth -Out" to say Large Rocks, Trash and Dump Piles
will be removed
$

0.05 $ 110,795
2,163,527
Sf
Hyrdroseed
$

0.05 $ 108,176
A.

Subtotal
B. Contingency (% x A)
$ 437,599
10% $ 43,760
C. Landscape Improvement Total (A + B) $ 481,359
3/7/2025

Bond No. 30240652
Premium: $1,781 / Annually
PW #:

Fik #:

PERFORMANCE BOND
Exhibit "C"
WHEREAS, the City Council of the City of Beaumont, State of California, and Tri Pointe Homes IE-SD, Inc. (hereinafter designated as "Principal") have entered into Agreement To Provide Security For Improvements For Tract Map Or Parcel Map Or Plot Plan, dated, 20 a whereby Principal agrees to install and complete certain designated public improvements itemized and described on Tract Map, Parcel Map or Plot Plan No. ** , which is hereby incorporated herein and made a part hereof; and **Sundance PA -14 SCE Easement WHEREAS, Principal is required under the terms of the said agreement to furnish a bond for the faithful performance of said agreement.

NOW, THEREFORE, we, the Principal and The Continental insurance Company as Surety, are held and firmlybound unto the City of Beaumont (hereinafter called "City"), in the penal sum of *** dollars ($ 481,358.57 ) lawful money of the
United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by these presents. ***Four Hundred Eighty -One Thousand Three Hundred Fifty -Eight and 57/100*** The condition of this obligation is such that if the above bounded Principal, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the said agreement and any alteration thereof made as therein provided, on his or their part to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

As part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment therein rendered.

The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement or to the work or to the specifications.
[signatures on following page]

Performance Bond No. 30240652
Page Two (2)
IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on the 14th day of March , 20 25
(Seal) (Seal)
The Continental Insurance Company Tri Pointe Homes !E -SD, Inc.

SURETY PRINCIPAL
By:

Name: Michelle Haase
Title: Attorney -in -Fact
Address: 2 Park Plaza, Suite 400
Irvine, CA 92614
By:

Name:

Title:

By: _
Name:

Title:

Address: 1250 Corona Pointe Court, Suite 600
Corona, CA 92879

ALL SIGNATURES MUST BE ACKNOWLEDGED BEFORE A NOTARY PUBLIC

ALL- PURPOSE

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

State of Califomia }
County of Orange
On MAR 14 202 before me,
}
Sarah E. Campbell, Notary Public
ptaw nasal ueme ram a oter• areal
personally appeared Michelle Haase
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of Califomia that the foregoing paragraph is true and correct.
lel seal.
(Notary Public Seal)
SARAH E. CAMPBELL
Hotery Public • California
Los Angeles County e
Commission # 2491647
My Comm. Expires Jun 27. 2028

ADDITIONAL OPTIONAL INFORMATION

DESCRIPTION OF THE ATTACHED DOCUMENT
(rllt or dos cdplim elMO ed do uiw g
(Tile or desaip ion of attached document co dfl ed)
Number of Pogo, Document Date _

CAPACITY CLAIMED BY THE SIGNER
❑ Individual (s)
❑ Corporate Officer
(Titre)
❑ Partner(s)
❑ Attomey-in-Fact
p Trustee(s)
• Other
2015 Version wvw.NataryClasse corn 80O-873-%65

INS FOR COMPLETING THIS FORM
This farm complies with current Californ a states regarding notary wording ant; ifneeds4 should be completed std attached to dm abciatient Aeknolwedgents from other states may be completed for documents being sent a that state so lag as the wording does not require tls California notary to violate California notary law_ • Slate and County information most be the State and County where the document signca(s) personally appeared beta the notary public for aclmowledgment • Date of notarization must be the date tbat the signer(s) personally appeared which must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or ha commission followed by n comma and dose yore Nets (notary Public). • Print the names) of document signer(s) who pasesally appear at the time of notarisation_
• Indicate the correct singular or plural forms by crossing off incorrect tams (ie. hdsbeAhey- is law) or circling the correct forms. Failure to correctly indicate this information may lad to rejection of document recording, • The notary seal impression must be clear and photographically reproducible.

Impression nun not cover text or lints. If seal impression smudges, re -sal if a sufficient area permits, otherwise complete s different acknowledgment form. • Signature of the notary public must match the signature on file with the office of the county clack.
• Additional information on is not required bat could rscrp to enure this aelmohniedgmeat is sot misused or attached to a different document. • Indicate title or type of attar document, number of pages and date.

Indicate the capacity claimed by the sib. If the claimed cspscdty is a corporate officer, indictee the title (ie_ CEO, CFO, Secretary). • Securely attach this document to the signed dactment with a staple.

POWER OF ATTORNEY APPOINTING INDIVIDUAL ATTORNEY -IN -FACT Know MI Meo By These Presents, That The Continental ]nsurance Company, a Pennsylvania insurance company, is a duly organized and existing insurance company having its principal office in the City of Chicago, and State of Illinois, and that it does by virtue oldie signature and seal herein affixed hereby make, constitute and appoint
Marina Tapia, Janina Monroe, Michelle Haase, Timothy J Noonan, Edward C Spector, Aldan Smock, Jaren A Marx, Erin Brown, Charles R Teter m, Simone Gerhard, B Altman, K D Wapato, Rachel A Mullen, D Garcia, Sandra Corona, Jennifer Ochs, Ethan Spector, Sank Campbell, Individually
of Irvine, CA, its true and (awful Attorney(s)-in-Fact with full power and authority hereby conferred to sign, seal and execute for and on its behalf bonds, undcrtalongs and other obligatory instruments of similar nature
- In Unlimited Amounts -
and to bind them thereby as fully and to the same extent as if such instruments were signed by a duly authorized officer of the insurance company and all the acts of said Attorney, pursuant to the authority hereby given is hereby ratified and confirmed.

This Power of Attorney h made and excreted pursuant to and by authority of the Authorizing By -Laws end Resolutions printed at the bottom of this page, duly adopted, as indicated, by the Board of Directors of the insurance company.

In Witness Whereof; The Continental Insane= Company has caused these presents to be signed by its Via President and its corporate scat to be hereto affixed on this 29th day of April, 2024. .... ess.

The Continental Insurance Company,
Larry Kasten Via President
State of South Dakota, County ofMirmehaha, ss:

On this 29th day of April, 2024, before me personally came Larry Kasten to me known, who, being by me duly sworn, did depose and say: that he resides in the City of Sioux Falls, State of South Dakota; that he is a Vice President of The Continental Insurance Company, a Pennsylvania insurance company, described in and which executed the above instrumerM that be knows the seal of said insurance company; that the seal affixed to the said instruman is such corporate seal; that it was so affixed pursuant to authority given by the Board of Directors of said insurance company and that be signed his name thereto pursuant to like authority, and acknowledges same to be the act and deed of said insurance company.

M BENT
riarr arnn oatav vc
same wuovrr f
My Commission Expires March 2, 2026
M. Bent Notary Public

CERTIFICATE
I, Paula Kolsrud, Assistant Secretary of The Continental Insurance Company, a Pennsylvania insurance company, do hereby certify that the Power of Attorney herein above set forth is still in force, and further certify that the By -Law and Resolutions of the Board of Directors oftbe insw-atce company printed below this certificate are still in force. In testimony whereof I have hereunto ' ... raid affixed the seal of the said insurance company this 14th day of March, 2025. r3 s The Continental Insurance Company
Paula Kolsrud Assistant Secretary
Authorizing By -Laws and Resolutions
ADOPTED BY THE BOARD OF DIRECTORS OF THE CONTINENTAL INSURANCE COMPANY:

This Power of Attorney is made and executed pursuant to and by authority of the following resolution duly adopted by the Board of Directors of the Company at a meeting held on May 10, 1995.
"RESOLVED: That any Senior or Group Vice President may authorize an officer to sign specific doauments, agreements and instruments on behalf of the Company provided that the name of such authorized officer and a description of the documents, agreements or instruments that such officer may sign will be provided in writing by the Senior or Group Vice President to the Secretary of the Company prior to such execution becoming effective.

This Power of Attorney is signed by Larry Kasten, Vice President, who has been authorized pursuant to the above resolution to execute power of attorneys on behalf of The Continental Insurance Company.

This Power of Attorney is signed and sealed by facsimile under and by the authority of the following Resolution adopted by the Board of Directors of the Company by unanimous written consent dated the 25' day of April, 2012. "Whereas, the bylaws of the Company or specific resolution of the Board of Directors has authorized various officers (the "Authorized Officers") to execute various policies, bonds, undertakings and other obligatory instruments of like nature; and Whereas, from time to time, the signature of the Arhorized Officers, in addition to being provided in original, hard copy format, may be provided via facsimile or otherwise in an electronic format (collectively, "Electronic Signatures"), Now therefore be it resolved: that the Electronic Signature of any Authorized Officer shall be valid and binding on the Company."
This Power of Attorney may be signed by digital signature and sealed by a digital or otherwise electronic -formatted corporate seal under and by the authority of the following Resole &m adopted by the Board of D la -tins of the Company by unanimous written cornett dated the 271 day of Apnl, 2022:
"RESOLVED: That it is in the best interest of the Company to periodically ratify and confirm any corporate documents signed by digital signatures and to ratify and confirm the use of a digital or otherwise electronic -formatted corporate seal, each to be considered the act and deed of the Company." Form F6850-6-2023

Bond No. 30240652
Premium is included in Performance Bond.

PAYMENT BOND
WHEREAS, the City Council of the City of Beaumont, State of California, and Tri Pointe Homes IE-SD, Inc. (hereafter designated as "the Principal") have entered into Agreement To Provide Security For Improvements For Tract Map Or Parcel Map Or Plot Plan, Sundance PA -14 SCE dated , 20_-, whereby Principal agrees to install and complete certain designated Easement public improvements which is hereby incorporated herein and made a part hereof; and WHEREAS, under the terms of the said agreement, the Principal is required before entering upon the performance ofthe work, to file a good and sufficient payment bond with the City of Beaumont to secure the claims to which reference is made in Title 3 (commencing with Section 9000, et seq.) of Part 6 of Division 4 of the Civil Code of the State of California NOW, THEREFORE, the Principal and the undersigned as corporate surety, are held firmly bound unto the City of Beaumont and all contractors, subcontractors, laborers, materialmen, and other persons employed in the performance of the said agreement and referred to at Title 3 (commencing with Section 9000, et seq.) of Part 6 of Division 4 of the Civil Code in the sum of * * dollars ($ 481,358.57 ), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this work or labor, that the Surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered. **Four Hundred Eighty -One Thousand Three Hundred Fifty -Eight and 57/100** It is hereby expressly stipulated and agreed that this bond s call inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000, et seq.) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond.

Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect.

The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration, or addition.
[signatures on following page]

Name: Michelle Haase
Title: Attorney -in -Fact
Tri Pointe Homes IE-SD, Inc.

Payment Bond 30240652
Page Two (2)
IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on the 14th day of March , 20 25 .
(Seal) (Seal)
The Continental Insurance Company

SURETY PRINCIPAL
By: } ' By:

Name:

Title:

Address: 2 Park Plaza, Suite 400 By
Irvine, CA 92614 Name:

Title:

Address: 1250 Corona Pointe Court, Suite 600
Corona, CA 92879

ALL SIGNATURES MUST BE ACKNOWLEDGED BEFORE A NOTARY PUBLIC

ALL- PURPOSE

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

State of California }
County of Orange
on MAR 14 2025
before me,
}
Sarah E. Campbell, Notary Public
(Here lawn none Innis crime ate)
personally appeared Michelle Haase
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

SARAH E. CAMPBELL
Notary Public - California
Los Angeles County
Commission I 2491641
My Comm. Expires Jun 27.2028
(Notary Public Seal)

ADDITIONAL OPTIONAL INFORMAT ON INSTRUCTIONS FOR COMPLETING THIS FORM This forte complies with current Caltforma statutes regarding notary wording and if tteede4 should be pleted andante cited to the dcettaw,L Acknolwedgents from other status may be completed for documents being sent to that state so long as the wording does not require the California notary to violate California rotary law. • State and County information trust be the State and County where the document signer(s) personally appeared before the notary public far admowledgment • Date of notarization must be the data that the sigoa(s) personally appeared which must also be the same chic the Ic&nowiedgment is completed. • The notary public must print his or her name as it appears within his or her commission followed by a comma turd then your title (notary public). • Print the mamas) of document signer(a) who personally appear at the Brae of notarization.
• Indic the correct singular or plural forums by crossing off incorrect forms (i.e. he/she✓they - is /ere) or circling the correct forms. Failure to correctly indicate this informative may lad to rejection of document recording
• The notary seal impression must be clear and photographically reproducible.

Impression mist not cover text or lines. If seal impression smudges, re -seal if a sufficient area pits, otherwise complete a different adtnowl eat form • Signature of the notary public must =itch the signature on file with the office of the county clot.
d• Additional infomyrifoo is not rcquircd but could hclp to casurc this acknowledgment is not misused or attached to a different document. �► Indicate title or type of attached document, number ofpagcs and date. s Indicate the capacity claimed by the signer_ If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary). • Securely attach this document to the signed document with a staple.

DESCRIPTION OF THE ATTACHED DOCUMENT
(The ordesalpAonof attached document)
(Tile or description of attached document wnf ued)
Number of Pages Document Date

CAPACITY CLAIMED BY THE SIGNER
❑ Individual (s)
❑ Corporate Officer
(rte)
❑ Partner(s)
❑ Attorney -in -Fact
❑ Trustee(s)
❑ Other
2015 Version www.NotaryCiasses.com 8tl0.873-9th

POWER OF ATTORNEY APPOINTING INDIVIDUAL ATTORNEY -IN -FACT Know All Me* By These Praenla, That The Continental Insurance Company, a Pennsylvania insurance company, is a duty organized and existing insurance company having its principal office in the City of Chicago, and State of Illinois, and that it does by virtue of the signature and seal herein affixed hereby make, constitute and appoint
Marina Tapia, Janina Monroe, Michelle Haase, Timothy J Noonan, Edward C Spector, Aldan Smock, Jaren A Marx, Erin Brown, Charles R Teter III, Simone Gerhard, B Aleman, K D Wapato, Rachel A Mullen, D Garcia, Sandra Corona, Jennifer Ochs, Ethan Spector, Sarah Campbell, Individually
of Irvine, CA, its true and lawful Attorneys) -in -Fact with full power and authority hereby conferred to sign, seal and execute for and on its behalf bonds, undertakings and other obligatory instruments of similar nature
- In Unlimited Amounts -
and to bind there thereby as fully and to the same extent as if such instruments were signed by a duly authorized officer of the insurance company and all thc acts of said Attorney, pursuant to the authority hereby given is hereby ratified and confirmed.

This Power of Attorney is made and executed pursuant to and by authority of the Authorizing By -Laws and Resolutions printed at the bottom of this page, duly adopted, as indicated, by the Board of Directors of the insurance company.

In Witness Whereof, The Continental Insurance Company has caused these presents to be signed by its Vice President and its corporate seal to be hereto affixed on this 29th day of April, 2024.

State of South Dakota, County of Minnehaha, ss:
41:65%. The Continental Insurance Company
Vice President
On this 29th day of April, 2024, before me personally came Larry Kasten to me known, who, being by me duly sworn, did depose and say: that he resides in the City of Sioux Fells, State of South Dakota; that he is a Vice President of The Continental Insurance Company, a Pennsylvania insurance company, described in end which executed the above irrstnmient; that he knows the seal of said insurance company; that the seal affixed to the said instrument is such corporate seal; that it was so affixed pursuant to authority given by the Board of Directors of said insurance company and that he signed his name thereto pursuant to like authority, and acknowledges same to be the act and deed of said insurance company. rRlwoam
lacer:EGA _
My Commission Expires March 2, 2026 M. Bent
a01nrN MIa1M
3 M. BENT
P
rn
Notary Public

CERTIFICATE
I, Paula Kolsrud, Assistant Secretary of The Continental Insurance Company, a Pennsylvania insurance company, do hereby certify that thc Power of Attorney herein above set forth is still in force, and further certify that the By -Law and Resolutions of the Board of Directors of the insurance company printed below this certificate are still in force. In testimony whereof I have hereunto ' and affixed the seal of the said insurance company this 14th day of March, 2025. t ' k j The Continental Insurance Company
Paula Kolsrud Assistant Secretary
"••wINMo
Authorizing By -Laws and Resolutions
ADOPTED BY THE BOARD OF DIRECTORS OF THE CONTINENTAL INSURANCE COMPANY:

Thu Power of Attorney is made and executed pursuant to and by authority of the following resolution duty adopted by the Board of Directors of the Company at a meeting held on May 10, 1995.
"RESOLVED: That any Senior or Group Vice President may authorise an officer to sign specific documents, agreements and instruments on behalf of the Company provided that the name of such authorized officer and a description of the documents, agreements or instruments that such officer may sign will be provided in writing by the Senior or Group Vice President to the Secretary of the Compraiy prior to such execution becoming effective.

This Power of Attorney is signed by Larry Kasten, Vice President, who has been authorized pursuant to the above resolution to execute power of attorneys on behalf of The Continental Insurance Company.

This Power of Attorney is signed and sealed by facsimile under and by the authority of the folbwing Resolution adopted by the Board of Directors of the Company by unanimous written consent dared the 25* day of April, 2012. "Whereas, the bylaws of the Company or speck resolution of the Board of Directors has authorized various officers (thc "Authorized Officers") to execute various policies, bonds, undertakings and other obligatory instruments of lice nature; and Whereas, from time to bone, the signature of the Authorized Officers, in addition to being provided in original, hard copy format, may be provided via facsimile or otherwise in an electronic format (collectively, "Electronic Signatures"), Now therefore be it resolved: that the Electronic Signature of any Authorized Officer shall be valid and binding on the Company_"
This Power of Attorney may be signed by digital signature and sealed by a digital or otherwise electronic -formatted corporate seal wider and by the authority of the following Resolution adopted by the Board of Directors of the Company by unanimous written consent dated the 271° day of April, 2022:
"RESOLVED: That it is in the best interest of the Company to periodically ratify and confirm any corporate documents signed by digital signatures and to ratify and confirm the use of a digital or otherwise electronic -formatted corporate seal, each to be considered the act and dad of the Company." Fan F6850-6-2023

RECORDING REQUESTED BY:

CITY CLERK
WHEN RECORDED RETURN TO:

City Clerk
City of Beaumont
550 E. 6th Street
Beaumont, CA 92223

SPACE ABOVE THIS LINE FOR RECORDER'S USE

CITY OF BEAUMONT

SUBDIVISION IMPROVEMENT AGREEMENT
TRACT or PARCEL MAP NO. 31468
DATE OF AGREEMENT: March 14, 2025
NAME OF SUBDIVIDER: Tri Pointe Homes IE-SD, Inc , a California Corporation . (hereinafter referred to as "Subdivider").

NAME/NUMBER OF DEVELOPMENT:
residential
PW2024-0116
subdivision consisting of
, originally approved on
lots,
, and Tentative Tract/Parcel ("Tract/Parcel" or
"Tentative Tract/Parcel Map") , originally approved on: .

FINAL TRACT/PARCEL MAP

RECORDED ON

APPROVED ON

AS INSTRUMENT NUMBER
("Final Tract Map/Final Parcel Map").

PROPERTY SUBJECT TO AGREEMENT: The real property which is the subject of this Agreement is located in the City of Beaumont, County of Riverside and is described in Exhibit "A" attached hereto and incorporated herein (hereinafter the "Property").

EST. TOTAL COST OF
PUBLIC IMPROVEMENTS:
$ 45,000.00
EST. TOTAL COST OF
PRIVATE IMPROVEMENTS:
$
EST. TOTAL COST OF
MONUMENTATION:
(see Exhibit "B")
(see Exhibit "B")
(see Exhibit "B")
BOND NUMBERS: 30240653
LETTER OF CREDIT NUMBERS:

FINANCIAL INSTITUTION: The Continental Insurance Company

THIS SUBDIVISION IMPROVEMENT AGREEMENT ("Agreement") is made and entered into by and between the City of Beaumont, a California municipal corporation (hereinafter referred to as "City"), and Tri Pointe Homes IE-SD, Inc i a Califomia Corporation (hereinafter referred to as "Subdivider"). City and Subdivider are sometimes referred to hereinafter individually as a "Party", and collectively as the "Parties".

RECITALS
A. Subdivider is the owner of certain real property located in the City of Beaumont legally described on Exhibit "A" attached hereto and incorporated and made part of this Agreement by this reference (the "Property").

B. The conditions of approval of the above referenced Tentative Tract Map and any related entitlements, which are hereby incorporated herein by this reference, require that prior to the issuance of building permits, the Subdivider and the City shall enter into a subdivision improvement agreement, secured with sufficient security, as a guarantee of the construction and completion of all public and private improvements and land development work required by said conditions of approval and by the City subdivision laws and codes.

D. In consideration of the approval of a final map by the City Council, Subdivider desires to enter into this Agreement, whereby Subdivider promises to install and complete, at Subdivider's own expense, all the public improvement work required by City in connection with the proposed subdivisoion. Subdivider has secured this Agreement by improvement security required by the Subdivision Laws.

E. Improvement Plans (the "Plans") for the construction, installation, and completion of the public and private improvements are being or have been prepared by Subdivider and will be subject to approval by the Director of Engineering/Public Works ("City Engineer"). The City has adopted standards (hereinafter "Standards") for the construction and installation of improvements within the City, and the Plans will be prepared in conformance with the Standards in effect on the date of the approval of the Application. The Plans will be on file in the Office of the City Engineer and are incorporated into this Agreement by this reference as if set forth fully herein. All references in this Agreement to the Plans shall be deemed to include reference to any specifications for all of the improvements as approved by the City Engineer.

F. An estimate of the cost for construction of the public and private improvements and performing the land development work according to the Plans has been made and approved by the City Engineer. The estimated cost of these improvements is set forth on Page One (1) of this Agreement, and the basis for the estimate is attached hereto as Exhibit "B" and incorporated and made part of this Agreement by this reference. The amounts of the Improvement Securities required to be posted with this Agreement are also based upon the estimate in Exhibit "B".

G. For the purposes of this Agreement, the term "Public Improvements" means all those improvements within the Tract/Parcel intended for transfer or conveyance to the City or other public agency. The estimated cost of their construction is included in the above estimate included herein as Exhibit "B".

NOW, THEREFORE, in consideration of the issuance of the Final Tract map, Subdivider and City hereby agree as follows:

1. Subdivider's Obligation to Construct Improvements.
(a) In constructing and installing the improvements, Subdivider shall comply with all of the requirements and conditions of approval of in the Tentative Tract Map, related entitlements as well as the provisions of the Municipal Code and Subdivision Laws. (b) Subdivider shall complete, at its own expense, all the public and private improvements and related work on the Development, as required by the conditions of approval of the Tentative Map and related entitlements in conformance with the approved Plans and City Standards, including without limitation, those improvements set forth in Exhibit "B" (hereinafter collectively the "Improvements") within twenty-four (24) months of the date of this Agreement, unless a time extension is granted by the City as authorized by Section 20 of this Agreement.
(c) Notwithstanding the time limits specified in Section 1(b) above, no single family dwelling unit or group of units shall be given final inspection and clearance for occupancy by City unless the private and public streets providing access to and fronting such units are completed, the final lifts of pavement on the streets are in place, and all wet and dry utility services (e.g. sewer, water, electrical power, telephone, gas, etc.) to such units are in place and are operational.
(d) Subdivider shall furnish the necessary materials for completion of the Improvements in conformity with the Plans and City Standards.
(e) Subdivider shall acquire and dedicate, or pay the cost of acquisition by the City, of all rights -of -way, easements and other interests in real property required for construction or installation of the Improvements, free and clear of all liens and encumbrances.

Subdivider's obligations relating to acquisition by City of off -site rights -of -way, easements and other interests in real property shall be subject to a separate agreement between Subdivider and City. Subdivider shall also be responsible for obtaining any public or private drainage easements or authorizations therefor to accommodate the Development. (f) Subdivider shall furnish and install all monuments, stakes and property corners on the lots and streets in the Property as specified on the final recorded tract maps for the Development in accordance with the provisions of the Subdivision Laws, and shall submit centerline tie sheets to City, within thirty (30) days after completion of the Improvements, or as specified in any separate monument agreement with the City, but in any event prior to their acceptance by the City.

2. Improvement Securities.
(a) Subdivider agrees to secure this Agreement with good and sufficient improvement securities in a form approved by the City Attorney (referred collectively hereinafter as "Improvement Securities" and individually as "Improvement Security") to guarantee the construction and completion of all the improvements in the Development. All such improvement securities shall be posted with the City prior to the City's final building inspection and issuance of a Certificate of Occupancy for any single family dwelling constructed by Subdivider, its agents, assigns or contractors, on any lot within the Development, as described in Exhibit "A". Said securities are estimated at this time in Exhibit "B" to be in the following amounts, and shall be for the purposes described as follows:
(i) Forty Five Thousand and 00/100 DOLLARS ($45,000.00) to ensure faithful performance of the construction and installation of the public and private Improvements required by this Agreement ("Performance Security"), which amount is 100% of the estimated cost of the Improvements as set forth in Exhibit "B"; and (ii) Forty Five Thousand and 00/100 DOLLARS ($45,000.00) to secure payment to any contractor, subcontractor, persons renting equipment or furnishing labor materials for the Improvements required to be constructed or installed pursuant to this Agreement ("Labor & Materials Security"), which amount is one -hundred percent (100%) of the estimated cost of the Improvements; and (iii) and 00/100 DOLLARS ($ XX,XXX.XX) in the form
of a Warranty Bond or cash deposit with the City to guarantee or warranty the Improvement work done pursuant to this Agreement for a period of one (1) year following acceptance/certification thereof by City, against any defective work or labor done or defective materials furnished ("Warranty Security"). The Warranty Security is 10% of the estimated cost of the Performance Security amount described above, and such Warranty Security must be provided by Subdivider to City prior to the City's release of any bonds or Improvement Securities filed with this Agreement. (iv) and 00/100 Dollars ($X,XXX.XX) in the form of a cash deposit, which is 100% of the estimated cost of setting all final subdivision monuments, boundary corners, front and rear lot corners and centerline ties not previously set or submitted on the lots and streets within the Property as described in Exhibit "A", and for the preparation and recordation of any related Certificate of Correction, as required by Section 66469 of the State Subdivision Map Act. (b) The Improvement Securities required by this Agreement shall be kept on file with the City Clerk. If surety bonds are used, they must be issued by a surety company currently admitted to transact surety insurance business in California by the California Department of Insurance, with a Best's Insurance Guide rating of no less than A-. The terms of any documents evidencing such Improvement Securities as set forth in this Section 2 or

referenced on Page One (1) of this Agreement, are incorporated into this Agreement by this reference as if set forth fully herein. If any Improvement Security is replaced by another type or kind of approved Improvement Security, subject to the approval of the form thereof by the City Attorney, the replacement shall be filed with City Clerk and, upon filing, shall be deemed to have been made a part of and incorporated into this Agreement. Upon filing of a satisfactory replacement Improvement Security with the City Clerk, the former Improvement Security shall be released.
(c) Subdivider agrees to keep its Improvement Securities in full force and effect until they are reduced or released by City. If any Improvement Security provided by Subdivider is cancelled or terminated for any reason by the action of a surety, financial institution or other party, it shall be the responsibility of the Subdivider to immediately, upon written notice from City, provide a substitute Improvement Security which conforms to all the requirements of this Section 2 in the same amount or amounts. (d) Any additions, changes, alterations, or modifications of this Agreement or to the Plans, Specifications and Improvements referred to herein, including any extension of time within which the work hereunder may be completed, shall not release or exonerate any surety or sureties on the Improvement Security given in connection with this Agreement.

3. Alterations to Improvement Plans; Modification of City Standards. (a) Any changes, alterations or additions to the Plans or to the Improvements, not exceeding 10% of the original estimated cost of the Improvements, which are mutually agreed upon by City and Subdivider, shall not require Subdivider to increase any Improvement Securities provided under this Agreement. In the event such changes, alterations, or additions exceed 10% of the original estimated cost of the Improvements, Subdivider shall provide additional Performance Security as required by Section 2 of this Agreement for 100% of the total estimated cost of the Improvements as changed, altered, or amended, minus any completed partial releases allowed by Section 7 of this Agreement.

Subdivider shall also provide additional Labor & Materials Security as required by Section 2 of this Agreement for 50 °/0 of the total estimated cost of the Improvements as changed, altered, or amended.
(b) Subdivider shall construct all Improvements in a good and workman like manner and in accordance with the City Standards in effect as of the date of the Approval Action specified on Page One (1) hereof. The City reserves the right to modify the Standards applicable to the Subdivision and this Agreement, when necessary to protect the public safety or welfare or to comply with applicable State or Federal law or City zoning ordinances. If Subdivider requests and is granted an extension of time for completion of the Improvements, the City may apply the Standards in effect at the time the extension is granted.

4. Modification of Drainage Plan. Subdivider agrees that if during the course of construction and installation of Improvements it shall be determined by the City Engineer that revision of the

drainage plan is necessary in the public interest, it will undertake such design and construction changes as may be reasonable and as are indicated by the City Engineer and approved by City.

Said changes, if any, shall be confined to the Property.

5. Reserved.

6. Inspections; Final Acceptance and Certification of Improvements. (a) Subdivider shall at all times maintain proper facilities and safe access for inspection of the Improvements by City inspectors and to the shops wherein any work is in preparation.
(b) Upon completion of the Improvements covered in this Agreement, the Subdivider shall request a final inspection by the City Engineer or his/her authorized representative.

Following receipt of such request, the City Engineer shall inspect the Improvements, make certain determinations and take certain actions as follows:
(i) If the City Engineer, or his/her authorized representative, determines that the Public Improvements requiring acceptance by another public agency have been completed in accordance with this Agreement, then the City Engineer shall request said agency to make a final inspection of such improvements and certify to the City that such improvements have been completed and installed to the satisfaction of said agency. Upon receipt of such certification, the City Engineer may release or reduce the securities held for such improvements. Any certification and/or acceptance of the Public Improvements shall not constitute a waiver of any defects by City.
(ii) For Improvements not requiring dedication to or acceptance by the a public agency (the "Private Improvements"), the City Engineer or his/her authorized representative shall inspect such improvements, and/or shall have the discretion to accept a certification from Subdivider's registered civil engineer stating that the Private Improvements have been completed in accordance with the approved Plans, City Standards and the Tentative Map. If the City Engineer, or his/her authorized representative, makes a finding, based on his/her own inspection (and/or any certification submitted by Subdivider's registered civil engineer) that the Private Improvements have been installed and constructed in accordance with the approved Plans, City Standards and the Tentative Map, the City Engineer shall recommend certification of the completion of the Private Improvements by placing an item on the next most convenient City Council agenda requesting certification and authorization to release the Improvement Securities. Said determination by the City Engineer and agendization of the certification and release shall not be unreasonably withheld or delayed.
(c) Subdivider shall bear all costs of inspection and certification of the Improvements.

7. Release of Improvement Securities.
(a) The Performance Security shall be fully released only upon the final completion and certification of all Private Improvements and Public Improvements. Partial releases may be permitted subject to the provisions of Subsections (a)(i) and (a)(ii) hereof. Upon final completion of the Public and Private Improvements under this Agreement, and after City Council acceptance/certification, the City shall file a Notice of Completion in accordance with the California Civil Code.
(i) The City Engineer may release a portion of the Performance Security, as work on the Improvements progresses, upon written application thereof by the Subdivider; provided, however, that no such release shall be considered by City for an amount less the cost estimate of the remaining work does not exceed twenty percent (20%) or less of the estimate of the total amount of work to be done as shown in Exhibit "B". Upon approval of a partial release or the reduction of Performance Security, the City shall not reduce such Performance Security to an amount less than two hundred percent (200%) of the value of the work remaining to be done. City and Subdivider agree that not more than two requests for reduction or partial release of Performance Security shall be considered between the start of construction and the completion and acceptance/certification of the Improvements by the City.
(ii) In no event shall the City Engineer authorize a release or reduction of the Performance Security which would reduce such security to an amount below that required to guarantee the completion of the Improvements and any other obligations imposed upon Subdivider by this Agreement.
(iii) No partial reduction or release of the Performance Security shall constitute or be construed as the City's acceptance or certification of any Improvements or related work. Such partial reductions or releases (if any) will merely reflect that a certain portion of the required work has been done.
(b) The Labor & Materials Security shall, ninety (90) days after the City's recordation of the Notice of Completion described in Subsection 7(a), be reduced to an amount equal to the total claimed by all claimants for whom liens have been filed and of which notice has been given to City, plus an amount reasonably determined by the City Engineer to be required to assure the performance of any other obligations secured by the Labor & Materials Security and to cover related legal costs. The balance shall be released upon the settlement of all claims and obligations for which the Labor & Materials Security was given. If no claims or liens have been filed and no notice has been given to City within said ninety (90) day period, then the Labor & Materials Security shall be released in full. (c) The Warranty Security shall not be released until after the expiration of the one-year (1 -year) warranty period and until any claims filed during the warranty period have been settled. As provided in Section 11, below, the warranty period shall not commence until final acceptance/certification of the Improvements and related work by the City Council.

(d) The Monumentation Security may be released in full by the City Engineer in accordance with the terms of the separate monument agreement with the City, or if there is none, upon submittal of the following:
(i) a written certification from the professional engineer or surveyor responsible for setting the monuments stating that all the final monuments for the Subdivision have been set in accordance with the Professional Land Surveyors Act and the Subdivision Map Act, and that the professional engineer or surveyor has been paid in full by Subdivider for such services; and
(ii) centerline tie sheets prepared in a manner acceptable to the City Engineer showing the locations of centerline monuments in existing public or private streets; and
(iii) any Record of Survey required by this Agreement has been filed with the County of Riverside and recorded.
(e) The City may retain from any Improvement Securities released an amount sufficient to cover costs and reasonable expenses and fees, including reasonable attorneys' fees.

8. Injury to Public Improvements, Public Property or Public Utilities Facilities.

Subdivider shall replace or repair or cause the repair or replacement of any and all public or private improvements, public utilities facilities and survey or subdivision monuments which are destroyed or damaged as a result of any work under this Agreement. Subdivider shall bear the entire cost of replacement or repairs of any and all public or private improvements or utility property damaged or destroyed by reason of any work done under this Agreement, whether such property is owned by the United States or any agency thereof, or the State of California, or any agency or political subdivision thereof, or by the City or any public or private utility corporation or by any combination of such owners. Any repair or replacement shall be made to the reasonable satisfaction, and subject to the approval of the City Engineer and the owner of any such public or private improvement.

9. Permits. Subdivider shall, at Subdivider's expense, obtain all necessary permits and licenses for the construction and installation of the Improvements, give all necessary notices and pay all fees and taxes required by law.

10. Notice of Breach/Default of Subdivider.
(a) Default of Subdivider shall include, but not be limited to: (1) Subdivider's failure to timely complete construction of the Improvements; (2) Subdivider's unwarranted failure to timely cure any defect in the Improvements; (3) Subdivider's failure to perform substantial construction work for a period of twenty (20) consecutive calendar days after commencement of the work; (4) Subdivider's insolvency, appointment of a receiver, or the filing of any petition in bankruptcy either voluntary or involuntary which Subdivider fails to discharge within thirty (30) days; (5) the commencement of a foreclosure action against the

Property or a portion thereof, or any conveyance in lieu or in avoidance of foreclosure; (6) Subdivider's failure to keep the Improvement Securities in full force and effect; (7) Subdivider's failure to notify the City of any sale, transfer or other disposition of the Property to a purported new Subdivider; (8) Subdivider's failure to maintain insurance; or (9) the failure of Subdivider or Subdivider's contractors, subcontractors, agents or employees to comply with any other terms and provisions of this Agreement. (b) In the event of any such default, the City Engineer or the City Council may serve written notice to Subdivider specifying in reasonable detail the nature of the default.

Subdivider shall have thirty (30) days from receipt of said notice to cure the default; provided that, if the default is not reasonably susceptible to being cured within said thirty (30) days, Subdivider shall have a reasonable period of time to cure the default so long as Subdivider commences to cure the default within said thirty (30) days and diligently prosecutes the cure to completion.
(c) If following service of such written notice of default, Subdivider fails to cure or commence curing the default to the satisfaction of City within the cure period specified in Subsection 10(b), above, the City Engineer or the City Council may serve notice of Subdivider's default upon Subdivider and where applicable Subdivider's surety, or the holder(s) of any other Improvement Securities, in accordance with the notice provisions set forth in Section 22 of this Agreement.
(d) In the event of service of the notice of default specified in Subsection 10(c), above, Subdivider's surety shall have the duty to take over and complete the Improvements and related work required under this Agreement; provided; however, that if the surety, within twenty (20) days after the serving upon it of such notice of default, does not give the City written notice of its intention to take over the construction of said Improvements or does not, within ten (10) days after giving City notice of such election, commence to complete the Improvements, City may take over the work and prosecute the Improvements to completion, by contract or by any other method City may deem advisable, for the account and at the expense of Subdivider, and Subdivider's surety shall be liable to City for any costs or damages occasioned City thereby; and, in such event, City, without liability for so doing, may take possession of, and utilize in completing the Improvements, such materials, appliances, plant and other property belonging to Subdivider as may be on the site of the work and necessary for the completion of same.
(e) The City reserves to itself all remedies available to it at law or in equity for Subdivider's default under this Agreement. The City shall have the right, subject to this Section, to draw upon or utilize the appropriate Improvement Securities to mitigate City's damages in event of default by Subdivider. The right of City to draw upon or utilize the Improvement Securities is additional to and not in lieu of any other remedy available to City. It is specifically recognized that the estimated costs and amounts of Improvement Securities may not reflect the actual cost of construction or installation of the Improvements, and therefore, City's damages for Subdivider's default shall be measured by the actual cost of completing the required Improvements. The sums provided by the

Improvement Securities may be used by City for the completion of the Improvements in accordance with the Plans.
(f) Failure of Subdivider to comply with the terms of this Agreement, including but not limited to, construction of all the Improvements as set forth herein and as required by the Tentative Map, shall constitute Subdivider's consent to: (1) the filing by City of a notice of violation against all of the lots in the Subdivision; (2) withholding of Building permits, utility connections and/or Certificates of Occupancy. The remedies provided by this Subsection (f) are in addition to and not in lieu of any other remedies available to City at law or in equity. Subdivider agrees that the choice of remedy or remedies for Subdivider's default or breach shall be in the sole discretion of City.
(g) In the event that Subdivider fails to perform any obligation hereunder, Subdivider agrees to pay all costs and expenses incurred by City in securing performances of such obligations, including costs of suit and reasonable attorney's fees. (h) The failure of City to take an enforcement action with respect to a default, or to declare a default or breach, shall not be construed as a waiver of that default or breach, or of any subsequent default or breach of Subdivider. Any failure by the City to enforce any provision of this Agreement shall not be construed as a waiver of the right to compel enforcement of such provision(s) and further shall not act to release any surety from its obligations under this Agreement.

11. Warr .
(a) For a period of one (1) year after final acceptance/certification by the City Council of the Improvements, Subdivider shall guarantee or warranty all the Improvements against any defective work or labor done or defective materials furnished. If within the warranty period any work relating to the Improvements or any part of thereof furnished, installed, constructed or caused to be done, furnished, installed or constructed by Subdivider fails to fulfill any of the requirements of this Agreement or the Plans, Subdivider shall without delay and without any cost to City, commence to repair or replace or reconstruct any defective or otherwise unsatisfactory part or parts of the work or structure within thirty (30) days of receiving written notice from City of the defect and diligently prosecute the repair or replacement work to completion.
(b) Should Subdivider fail to act promptly or in accordance with the repair/replacement requirements set forth herein, Subdivider hereby authorizes City, at City's option, to perform the repair/replacement work twenty (20) days after mailing written notice to Subdivider and to Subdivider's surety, and Subdivider agrees to pay City for the cost of such work.
(c) Should the City determine that an emergency or a threat to the public safety and welfare exists from the condition of the Improvements which require repairs, replacements or remedial measures to be made before Subdivider can be notified, City may, in its sole

discretion, make the necessary repairs or replacements or perform the necessary work and Subdivider shall pay to City the cost of such repairs.

12. Subdivider Not Agent of City. Neither Subdivider nor any of Subdivider's agents, officers, employees, or contractors are or shall be considered to be agents of City in connection with the perfomiance of Subdivider's obligations under this Agreement.

13. In'ury to Improvement Work; Risk of Loss. Until such time as the Public Improvements are accepted by City, Subdivider shall be responsible for and bear the risk of loss to any of the Public Improvements constructed or installed and shall be responsible for the care, maintenance of and any damage to such Public Improvements. Neither City, nor any of its agents, officers or employees shall be liable or responsible for any accident, loss or damage, regardless of cause, happening or occurring to the Public Improvements specified in this Agreement prior to the completion and acceptance of the Public Improvements by City. All such risks shall be the responsibility of and are hereby assumed by Subdivider. Subdivider is responsible for and shall bear the risk of loss for all Private Improvements at all times.

14. Other Agreements. Nothing contained in this Agreement shall preclude City from expending monies pursuant to agreements concurrently or previously executed between the Parties, or from entering into agreements with other Subdividers for the apportionment of costs of water and sewer mains, or other improvements, pursuant to the provisions of City ordinances providing therefor, nor shall anything in this Agreement commit to any such apportionment.

15. Subdivider's Obligation to Warn Public During Construction. Until final acceptance/certification of the Public Improvements pursuant to Section 6(b)(i), and final certification of construction of the Private Improvements pursuant to Section 6(b)(ii), Subdivider shall give good and adequate warning to the public of each and every dangerous condition existent in said Improvements and will take all reasonable actions to protect the public from such dangerous conditions in, on or around the work site.

16. Vesting of Ownership. Upon acceptance of the Public Improvements and related work on behalf of the City, and after recordation of the Notice of Completion, ownership of the Public Improvements constructed within the Private streets in the Development shall vest in the name of the City, or applicable government agency or utility company, and any improvement constructed on any public street pursuant to this Agreement shall vest in City.

17. Indemnity/Hold Harmless.
(a) Neither the City, nor any official, officer, employee, contractor or agent thereof, shall be liable for any injury to persons or property occasioned by reason of the acts or omissions of Subdivider, its agents, subcontractors or employees in the performance of this Agreement. Subdivider hereby agrees to, and shall defend and hold harmless City, its elective and appointive boards, commissions and officers, and its agents, contractors and employees from and against any and all claims, demands, causes of action, damages, costs, expenses, actual attorneys' fees, consultant's fees, expert's fees, losses or liability, in law or in equity, of every kind and nature whatsoever arising out of or in connection with

Subdivider's operations, or any subcontractor's operations, to be performed under this Agreement for Subdivider's or subcontractor's tort negligence including active or passive, or strict negligence, including but not limited to personal injury including, but not limited to bodily injury, emotional injury, sickness or disease, or death to persons and/or damage to property of anyone, including loss of use thereof, caused or alleged to be caused by any act or omission of Subdivider or any subcontractor, or anyone directly or indirectly employed by any of them or anyone for the full period of time allowed by law, with the exception of the sole negligence or willful misconduct of City. (b) Subdivider's indemnity, defense and hold harmless obligations under this Section 17 are not conditioned or dependent upon whether City, or its elective and appointive boards, commissions and officers, or its agents, contractors and employees, prepared, supplied or reviewed any Plans or related specifications in connection with the Improvements, or whether City or Subdivider has insurance or other indemnification covering any of these matters.
(c) Subdividers obligation to indemnify, hold harmless and defend City shall extend to injuries to persons and damages to or alleged taking of property resulting from the design or construction of the Improvements. City's acceptance and/or certification of the Improvements shall not constitute an assumption by City of any responsibility or liability for any damage or alleged taking of property referenced herein. City shall not be responsible or liable for the design or construction of the Improvements constructed or installed pursuant to the Plans, unless the particular Improvement design was required by City over the written objection of Subdivider, which objection stated that the Improvement design was potentially dangerous or defective and set forth a safe and feasible alternative design.

After City's acceptance/certification of the Improvements, Subdivider shall remain obligated to correct or eliminate all dangerous conditions caused by defects in design or construction; provided, however, that the Subdivider shall not be responsible for routine maintenance.

Subdivider acknowledges and agrees that Subdivider shall be responsible and liable for the design and construction of the Improvements and other work done pursuant to this Agreement, and except as may be provided above, City shall not be liable for any acts or omissions in approving, reviewing, checking, correcting or modifying any Plans, or in inspecting, reviewing or approving any work or construction of Improvements. Subdivider's Improvement Securities shall not be required to secure Subdivider's obligations under this Section 17.

18. Sale or Disposition of Subdivision; Assignment.
(a) Subdivider acknowledges and agrees that sale, transfer or other disposition of the Property prior to completion of the Improvements required hereunder will not relieve Subdivider from the obligations set forth in this Agreement, and Subdivider shall be required to notify City sixty (60) days in advance of any sale or transfer of ownership of the Property or any proposed assignment of this Agreement. If Subdivider sells or otherwise transfers the Property to any other person or entity prior to final completion of the Improvements, or wishes to assign this Agreement, Subdivider may request a novation of this Agreement and a substitution of Improvement Securities by the new owner or proposed

assignee (hereinafter collectively for purposes of this Section, "Successor"). Subdivider shall be required to provide any documentation reasonably required by City to determine the appropriateness of any proposed Successor.
(b) Any proposed Successor must demonstrate to the City its ability to perform and complete the obligations of Subdivider under this Agreement, as determined by objective standards of financial capability, creditworthiness and experience required for such performance, and the City shall have the right to compel the Successor to disclose all documents, information and other material which, in City's sole reasonable discretion, may establish or tend to establish that the proposed Successor meets the standards specified herein. Following approval by City and full execution of a novation (or other such release or assignment and assumption agreement(s) entered into by Subdivider, Successor and City), posting of satisfactory Improvement Securities and submission of required insurance by Successor, City shall release or reduce the securities posted by Subdivider in accordance with the provisions of such novation and release Subdivider of its obligations under this Agreement. Nothing in the novation (or other such release or assignment and assumption agreement entered into by Subdivider, Successor and City) shall relieve Subdivider of its obligations under any other Section of this Agreement for work or Improvements performed by Subdivider prior to the novation.

19. Time of the Essence. Time is of the essence in this Agreement.

20. Time for Completion of Improvements; Extensions.
(a) Subdivider shall commence and diligently prosecute to completion construction of all the Improvements required by this Agreement. The time for completion of the Improvements as specified in Subsection 1(b) of this Agreement may be extended as permitted by City ordinance. The City Manager may grant an extension of time for such period as may be in the public interest upon the showing of the Subdivider of good cause.

Any such extension granted shall be subject to the limitations and conditions set forth in Subsections 20(b) and (c), below, and shall be made by a writing executed by the in a form as approved by the City Attorney.
(b) Any such extension may be granted without notice to Subdivider's surety and shall not affect the validity of this Agreement or release the surety or sureties on any Improvement Securities given for this Agreement. However, City reserves the right to require as part of any extension amendment a written assurance from the surety acceptable to the City Attorney that the Improvement Securities required by Section 2 of this Agreement shall remain enforceable throughout the term of any extension. (c) The City Manager shall be the sole and final judge as to whether or not good cause has been shown to entitle Subdivider to an extension. In addition, the time for completion of the Improvements shall be extended for any delay resulting from an act of City, or from an act of God, which Subdivider could not have reasonably foreseen, or by storm or inclement weather which prevents the conducting of work, or by strikes, boycotts, similar actions by employees or labor organizations, which prevent the conducting of work, and

which were not caused by or contributed to by Subdivider, provided that Subdivider provides City with written notice of the delaying event within fifteen (15) days of the commencement of the delay. In the event of such delaying event, Subdivider shall use all reasonable efforts to remedy same and resume completion of the Improvements as promptly as practicable.
(d) As a condition of granting an extension of time to complete the Improvements required by this Agreement, the City Manager may require Subdivider to furnish new or additional Improvement Securities guaranteeing performance of this Agreement as extended in an increased amount as necessary to compensate for any increase in construction costs as determined by the City Engineer.

21. Notice. All notices required by or provided for under this Agreement shall be in writing and delivered in person or sent by certified or registered mail, postage prepaid and addressed as provided in this Section. Notice shall be effective on the date it is delivered in person, or, if mailed, on the date of deposit in the United States Mail. Notices shall be addressed as follows unless a written change of address is filed with City:

Notice to City:

Attn: City Manager
With a Copy to:

Notice to Subdivider:

City of Beaumont
550 E. 6th Street
Beaumont, CA 92223
John Pinkney, Esq.

SBEMP
1800 East Tahquitz Canyon Way
Palm Springs, CA 92262

22. Severability. The provisions of this Agreement are severable. If any portion of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect unless amended or modified in writing by the mutual consent of the Parties.

23. Captions. The captions of this Agreement are for convenience and reference only and shall not define, explain, modify, limit, exemplify, or aid in the interpretation, construction or meaning of any provisions of this Agreement.

24. Insurance.
(a) Subdivider shall, at all times during the construction of the Improvements, obtain, carry, maintain, and keep in full force and effect, at its sole cost and expense, policies of insurance of the types and in at least the minimum amounts described below:
(i) Commercial General Liability policy with a minimum combined single limit of One Million Dollars ($1,000,000) for each occurrence and Two Million Dollars ($2,000,000) in the aggregate for bodily injury, death, personal injury and property damage arising out of or in connection with the activities of the Subdivider and its contractors and subcontractors in performance of the work under this Agreement.

Coverage shall be at least as broad as Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 0001) and shall, in addition to the other coverages specified in this subsection, include coverage for independent contractors, ongoing operations, products and completed operations, contractual liability and personal and advertising injury.
(ii) Commercial Vehicle/Automotive Liability policy covering personal injury and property damage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit, covering any vehicle utilized by Subdivider, its officers, agents, employees, subcontractors or independent contractors in performing the work required by this Agreement.
(iii) Workers' Compensation and Employer's Liability policy for all Subdivider's employees, with Workers' Compensation limits as required by State law and Employer's Liability coverage of $1,000,000 per accident for bodily injury or disease.

In case any work is sublet, Subdivider shall require any contractor or subcontractor similarly to provide Workers' Compensation and Employer's Liability Insurance for all contractor's or subcontractor's employees, unless such employees are covered by the protection afforded by Subdivider.
(1) In case any class of employees engaged in work under this Agreement at the work site(s) is not protected under any Workers' Compensation law, Subdivider shall provide and shall cause each contractor or subcontractor to provide, adequate insurance for the protection of employees not otherwise protected.
(2) Subdivider hereby indemnifies City for any damages or claims resulting from failure of either Subdivider or any contractor of subcontractor to take out or maintain such liability or Workers' Compensation insurance. (b) Insurer Rating; Acceptability. Except as set forth otherwise herein, the policies required by this Section shall be issued by a California -admitted insurer with a rating of at least a A-; VII in the latest edition of Best's Insurance Guide. A Commercial General Liability policy issued by an insurer that is on the California Department of Insurance's List of Approved Surplus Line Insurers ("LASLI") will be acceptable, if no coverage from an

admitted insurer can be obtained by Subdivider, and further provided that such insurer maintains a Best's rating of at least "A-; X" and remains on the LASLI during the term hereof. Workers' Compensation coverage issued by the State Compensation Insurance Fund shall be acceptable if no other coverage can be obtained by Subdivider, and further provided such insurer remains admitted in California and is otherwise financially acceptable to City.
(c) Deductibles. Any deductibles or self -insured retentions must be declared in writing by Subdivider to City and subsequently approved by City prior to its execution of this Agreement and prior to commencement of any work hereunder. At City's option, Subdivider shall either reduce or eliminate the deductibles or self -insured retentions with respect to City, or Subdivider shall procure a bond guaranteeing payment of losses and expenses.
(d) Certificates and Endorsements Verification. Subdivider shall submit to the City original certificates of insurance and endorsements evidencing the coverages required by this Section. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. The City reserves the right to require complete, certified copies of all required insurance policies at any time and/or to require Subdivider to provide reports or status updates to evidence compliance of its contractors and subcontractors with the provisions of this Section. (e) Required Endorsements.
(i) The Commercial General Liability and Commercial Vehicle/Automotive Liability policies are to contain or be endorsed to contain the following provisions:
(1) Additional Insureds. The City of Beaumont, its officials, officers, employees, agents and independent contractors shall be named as additional insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Subdivider; and with respect to liability arising out of work or operations performed by or on behalf of the Subdivider including materials, parts or equipment furnished in connection with such work or operations.
(2) Primary Insurance. For any claims related to this project, the Subdivider's insurance coverage shall be primary insurance as respects the City of Beaumont, its officials, officers, employees, agents and independent contractors. Any insurance or self-insurance maintained by the City of Beaumont, its officials, officers, employees, agents and independent contractors shall be excess of the Subdivider's insurance and shall not contribute with it. This endorsement is not applicable to the Commercial Vehicle/Automotive Liability Policy.

(3) Waiver of Subrogation. Endorsements waiving all rights of subrogation against the City of Beaumont, its officials, officers, employees, agents and independent contractors shall be provided.
(ii) The Workers' Compensation policy shall be endorsed to waive all rights of subrogation against the City of Beaumont, its officials, officers, employees, agents and independent contractors.
(f) Other Insurance Requirements. All policies required under this Agreement shall contain provisions stating that such policies cannot be canceled or reduced except on at least thirty (30) days prior written notice to Subdivider (ten (10) days' notice for cancellation due to non-payment). Subdivider further agrees to: (1) provide to City copies of any notices relating to cancellation or reduction of insurance within two (2) days of receipt; and (2) cause all certificates of insurance to include language indicating that the issuers or producers of such policies will endeavor to provide copies of any such notices directly to City.
(g) Commencement of Work. Subdivider shall not commence work under this Agreement until Subdivider has obtained all insurance required pursuant to this Section, and such insurance has been obtained by Subdivider and approved by City; nor shall Subdivider allow any contractor or subcontractor to commence work on the Improvements until all similar insurance required of the contractor or subcontractor has been obtained.

Certificates, endorsements, and where applicable, full copies of policies shall be maintained on file with the City Clerk.
(h) Higher Limits. If Subdivider maintains higher limits than the minimums specified in this Section 25, the City requires and shall be entitled to coverage for the higher limits maintained by Subdivider. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

25. Attorneys' Fees. In the event any action at law or in equity is brought to enforce the terms of this Agreement, the prevailing Party shall be entitled to litigation costs and reasonable attorneys' fees.

26. Incorporation of Recitals. The Recitals to this Agreement are hereby incorporated into in the terms of this Agreement.

27. Entire Agreement. This Agreement constitutes the entire agreement of the Parties and supersedes any prior written or oral agreements between them with respect to the subject matter hereof. All modifications, amendments, or waivers of the terms of this Agreement must be in writing and signed by the appropriate representatives of the Parties.

28. Governing Law; Venue. This Agreement shall be governed by and interpreted in accordance with the laws of the State of California. In the event that suit shall be brought by either Party to this contract, the Parties agree that venue shall be exclusively vested in the State courts

of the County of Riverside, California or where appropriate, in the United States District Court, Southern District of California, Riverside, California.

29. Runs with the Land; Recordation.
(a) The Parties agree that the terms and provisions set forth in this Agreement shall be deemed provisions, terms and/or covenants running with the Property in accordance with applicable law, including without limitation, California Civil Code section 1468, and shall pass to and be binding upon the heirs, successors and assigns of the Parties to this Agreement, and on any successor owner of the Property.
(b) The provisions of Subsection 29(a) notwithstanding, Subdivider shall remain jointly and severally liable with its heirs, successors, assigns or successor owners of the Property for the responsibilities and liabilities imposed by this Agreement unless a novation or assignment agreement is executed in accordance with the provisions of Section 18 of this Agreement.
(c) Upon execution, this Agreement shall be recorded in the Official Records of Riverside County, and by such recordation, it is the intention of the Parties to give notice to and bind their successors, heirs and assigns hereto.

30. Authority of Executing Parties. Each person executing this Agreement on behalf of a Party represents and warrants that such person is duly and validly authorized to do so all behalf of the entity it purports to bind and that he/she is authorized to enter into contracts on behalf of Subdivider. The undersigned, on behalf of Subdivider, binds Subdivider, its partners, successors, executors, administrators, and assigns with respect to the terms and provisions of this Agreement.

IN WITNESS WHEREOF, this Agreement is executed by the Parties hereto on the date above first written.

Subdivider:
catt-Cw e-0
City:

CITY OF BEAUMONT
a Municipal Corporation
Signatur- - � " C i Signature:

City Manager
Print Name: t
Attachments: Exhibit A
Exhibit B
Exhibit C
ATTEST:

City Clerk
APPROVED AS TO FORM:

John Pinkney, City Attorney
APPROVED AS TO CONTENT:

Robert Vestal, Dir. Of Engineering/Public Works
Legal description of Property
Cost estimate(s)
Performance & Payment Bond OR Cash Bond
(Proper Notarization of Subdividers Signature is required and shall be attached)

EXHIBIT A

LEGAL DESCRIPTION

FOR THE SUBJECT PROPERTY

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF BEAUMONT, IN THE COUNTY OF RIVERSIDE, STA l'E OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

APN 419-020-065, 419020-074, 419-701-025 & 419-712-025
djm\agree\ Declaration of Covenant and Waiver 6-14-06

Mario Perez

CITY OF BEAUMONT PUBLIC WORKS DEPARTMENT

CONSTRUCTION COST WORKSHEET
FOR BOND PURPOSES: EXHIBIT "B"
PARCEL MAP OR TRACT NO.:

DATE: 10 -Mar -25
31468-4 & 31468-5 (Cherry Avenue Street Light Plans)
PP, CUP NO.:

BY:

LVIPROVENIENTS
FAITHFUL PERFORMANCE 100%
LABOR & MATERIALS SECURITY 100%
( of Estimated Construction Costs)
Streets/Drainage
Sewer
Total
Warranty Retension (10%)
Street/Drainage Plan Check Fees =
Sewer Plan Check Fees =
Street Inspection Fees =
Sewer Inspection Fees =
$
S
45,000.00
$
45,000.00
4,500.00
$
2,060.00
City of Beaumont

PUBLIC WORKS
APPR
Reviewed by:
03/12/20 5 4:47:03 PM

DESIGN ENGINEERS CALCULATIONS OF IMPROVEMENT BONDING COSTS Construction items and their quantities as shown on attached sheets are accurate for the improvements required to construct the above project and the mathematical extensions using City's unit costs are accurate for determining bonding, plan check and inspection costs.

Above amounts do ninclude additional 20% for recordation prior to having signed plans Above al . unts do nom.- X include additional 20% for recordation prior to having signed plans [3/1b 1 /25
ate
ature
i ame typed or printed
FORM $ UNIT COSTS REVISED 09/06
Civil Engineer's Stamp
""PLEASE READ INSTRUCTIONS BELOW"*"""

1. Quantities to be taken from improvement plans, Unit costs to be as provided on "City of Beaumont Improvement Requirement Worksheet".

2. Show Bond Amounts to the nearest $500.

3. For construction items not covered by "City of Beaumont Improvement Worksheet", Design Engineer is to provide his opinion of construction cost and use of that cost. If City of Beaumont Unit Costs are determined to be too low in the opinion of the Design Engineer, the higher costs as provided by the Design Engineer should be used.
3/10/2025

Bond No. 30240653
Premium: $167 / Annually
PW#:

File #:

PERFORMANCE BOND
Exhibit "C"
WHEREAS, the City Council of the City of Beaumont, State of California, and Tri Pointe Homes IE-SD, Inc. (hereinafter designated as "Principal') have entered into Agreement To Provide Security For Improvements For Tract Map Or Parcel Map Or Plot Plan, dated, 20 , whereby Principal agrees to install and complete certain designated public improvements itemized and described on Tract Map, Parcel Map or Plot Plan No. ** , which is hereby incorporated herein and made a part hereof; and **Sundance Tract 31468-4 & 31468-5 (Cherry Avenue Street Light Plans) WHEREAS, Principal is required under the terms of the said agreement to furnish a bond for the faithful performance of said agreement.

NOW, THEREFORE, we, the Principal and The Continental insurance Company as Surety, are held and firmly bound unto the City of Beaumont (hereinafter called "City"), in the penal sum of Forty -Five Thousand and no/100 dollars ($ 45,000.00 ) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by these presents.

The condition of this obligation is such that if the above bounded Principal, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the said agreement and any alteration thereof made as therein provided, on his or their part to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

As part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attomey's fees, incurred by the City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment therein rendered.

The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement or to the work or to the specifications.
[signatures on following page]

Performance Bond No. 30240653
Page Two (2)
IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on the 14th day of March , 20 25 .
(Seal)
The Continental Insurance Company
SURETY
By:

Name: Michelle Haase
Title: Attorney -in -Fact
Address: 2 Park Plaza, Suite 400
Irvine, CA 92614
(Seal)
Tri Pointe Homes IE-SD, Inc.

PRINCIPAL
By:

Name:

Title:

By:

Name:

Title:

Address: 1250 Corona Pointe Court, Suite 600
Corona, CA 92879

ALL SIGNATURES MUST BE ACKNOWLEDGED BEFORE A NOTARY PUBLIC

ALL- PURPOSE

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

State of California }
County of Orange
On MAR 14 2025 before me, _
personally appeared Michelle Haase
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
}
Sarah E. Campbell, Notary Public
tnwirsa•andetdiagram) _
I certify under PENALTY OF PERJURY under the laws of the State of Califon the foregoing paragraph is true and correct.

WIT S and an • icial seal.
(Notary Public Seat)
SARAH E. CAMPBELL
Notary Public - California
Los Angeles County
Commission i 2491647
My Comm. Expires Jun 27.2028

ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM This form complies with currentCalifornia statutes regarding rotary wording and iftreaded should be completed and attached to the dace bent. Acknolwedgants from other states may be completed far &moments being sent to that state so long as the wording does not require the ColYbrnda notary to violate CalforRfa notary law. • State and County infotmetion must be the State and County where the document signer(s) personally appeared before the notary public for acknowledgment. • Date of motorization must be the date that the signer(s) personally appeared which must also be the tame date the acknowledgment is completed, • The notary public trust print his or her name as it appears within his c- her •

DESCRIPTION OF THE ATTACHED DOCUMENT
(TV, ordescdpfan d attached doctowt)
(Title or desaipllon of attached docurtert continued)
Number of PAVIII Document Date

CAPACITY CLAIMED BY THE SIGNER
❑ Individual (s)
❑ Corporate Officer
❑ Partner(s)
❑ Attomey-In-Fact
❑ Trustee(s)
❑ Other
2015 Versionsvww.NotaryCiasses_com 800-873-9865
rnmmission followed bye comma and thou your title (notary public).

Print the n•mfe(s) of document signer(s) who personally appear at the time of nolarizetion.

Indicate the correct singular or plural tarns by crossing off incorrect Lomas (i.e. h•Vshehtiayr- is bra ) or cycling the correct forms. Failure to correctly indicate this information may lead to rejection of document recording. • The notary seal impression must be car and photographically reproducible.

Impression must not cover text or lines. If seal impression =Edges, re -seal if a sufficient area permits, otherwise complete a different odcnowledgmad &xm. • Signature of the nobly public must aiatdj the signature m file with the office of the county clerk.
+.• Additional information is not required but could help to ensure this acknowledpnent is not misused or attached to a different document. •P Indicate title or type ofattached document, number of pages and data • Indicate the capacity cIsimed by the sipper. If the claimed capacity is a corpora officer, indicate the tide (Le. CEO, CFO, Secretary). • Securely attach this document to the signed doam:lrat with a staple.

POWER OF ATTORNEY APPOINTING INDIVIDUAL ATTORNEY -IN -FACT Know Al Mee By These Presents, That The Continental Insurance Company, a Pennsylvania insurance company, is a organized and insurance company having its principal office m the City of Chicago, and Stale of Illinois,and tut it does virtue of the s' organ by signature and seal herein affixed hereby make,
constitute and appoint
Marina Tapia, Janina Monroe, Michelle Haase, Timothy J Noonan, Edward C Spector, Aldan Smock, Jaren A Marx, Erin Brown, Charles R Teter HI, Simone Gerhard, B Altman, K D Wapato, Rachel A Mullen, D Garcia, Sandra Corona, Jennifer Ochs, Ethan Spector, Sarah Campbell, Individually
of Irvine, CA, its true and lavfful Attorney(s)-in-Fact with full power and authority hereby conferred io sign, seal and execute for and on its behalf bonds, undertakings and other obligatory instruments of similar oanrre
- In Unlimited Amounts -
and to bind them thereby as fully and to the same extent as if such instruments were signed by a duly authorized officer of the insurance company and all the ads of said Attorney, pursuant to the authority hereby given is hereby ratified and confirmed_ This Power of Attorney is made and executed pursuant to and by authority of the Authorizing By -Laws and Resolutions printed at the bottom of this page, duly adopted, as indicated, by the Board of Directors of the insurance company.

Ia Witless Whereof The Continental Insurance Company has caused these presents to be signed by its Vice President and its corporate seal to be hereto affixed on this 29th day of April, 2024.
43 -• The Continental Insurance Company
:s
IP
_t `.: ors CI of South Dakota, County of Minncbeha, ss:
•••...s.... Larry Kasten / Via President
or
On this 29th day ofApril, 2024, before me personally came Larry Kasten to me known, who, being by me duly sworn, did depose and say: that he resides in the City of Sioux Falls, State of South Dakota; that he is a Vice President of The Continental Insurance Company, a Pennsylvania insurance company, described in and which executed the above instrument; that he knows the seal of said insurance company; that the seal affixed to the said instrument is such corporate seal; that it was so affixed pursuant to authority given by the Board of Directors of said insurance company and that he signed his name thereto pursuant to like authority, and acknowledges same to be the act and decd of said insurance company.

M. BENT 1
wenn runs:
sorrrrt DAICOUViril-
My Commission Expires March 2, 2026
M. Bent Notary Public

CERTIFICATE
L Paula Kolsrud, Assistant Secretary of The Continental Insurance Company, a Pennsylvania insurance company, do hereby certify that the Power of Attorney herein above set forth is still in force, and further certify that the By -Law and Resolutions of the Board of Directors of the insurance company printed below this certificate are still in force. In testimony whereof I have hcituntc ' and affixed the seal of the said insurance company this 14th day of March, 2025. '*v t_ The Continental Insurance Company
Gk
tA. -1(1)(YellAlth
Paula Kolsrud Assistant Secretary
Authorizing By -Laws and Resolutions
ADOPTED BY THE BOARD OF DIRECTORS OF THE CONTINENTAL INSURANCE COMPANY:

This Power of Attorney is made and executed pursuant to and by authority of the following resolution duly adopted by the Board of Directors of the Company at a meeting held on May 10, 1995.
"RESOLVE) That any Senior or Group Vice President may authorize an officer to sign specific documents, agreements and instruments on behalf of the Company provided that the nave of such authorized officer and a description of the documents, agreements or instruments that such officer may sign will be provided in writing by the Senior or Group Vice President to the Secretary of the Company prior to such execution becoming effixtive.

This Power of Attorney is signed by Larry Kasten, Vice President, who has been authored pursuant to the above resolution to execute power of attorneys on behalf of 'The Continental insurance Company.

This Power of Attorney is signed and sealed by facsimile under and by the authority of the following Resolution adopted by the Board of Directors of the Company by unanimous written consent dated the 25° day of April, 2012. "Whereas, the bylaws of the Company or specific resolution of the Board of Directors has authorised various officers (the "Authorized Officers") to execute various policies, bonds, a dertakings and other obligatory i nstnrmeds of Idea nature; and Whereas, from time to time, the signature of the Authotvsd Officers, in addition to being provided in original, hard copy format, may be provided via facsimile or otherwise in as electronic fcernat (collectively, `Electronic Sigramres"), Now therefore be it resolved: that the Electronic Signature of any Authorized Officer shell be valid and binding on the Company."
This Power of Attorney may be signed by digital lure and scaled by a digital or otherwise electronic -formatted corporate seal under and by the authority of the following Resolution adopted by the Board of Directors of the Company by unanimous written conserver dated the 274' day of April, 2022:
"RESOLVED. That it is in the best interest of the Company to periodically ratify and confirm any corporate documents signed by digital signatures and to ratify and confirm the use of a llest or otherwise ekclronic-formatted corporate seal, each to be considered the act and deed of the Company." Fern F6550-6-2023

Bond No. 30240653
Premium is included in Performance Bond.

PAYMENT BOND
WHEREAS, the City Council of the City of Beaumont, State of California, and Tri Pointe Homes IE-SD, Inc. (hereafter designated as "the Principal") have entered into Agreement To Provide Security For Improvements For Tract Map Or Parcel Map Or Plot Plan, * * dated , 20 whereby Principal agrees to install and complete certain designated public improvements which is hereby incorporated herein and made a part hereof; and **Sundance Tract 31468-4 and 31468-5 (Cherry Avenue Street Light Plans) WHEREAS, under the terms of the said agreement, the Principal is required before entering upon the performance of the work, to file a good and sufficient payment bond with the City of Beaumont to secure the claims to which reference is made in Title 3 (commencing with Section 9000, et seq) of Part 6 of Division 4 of the Civil Code of the State of California.

NOW, THEREFORE, the Principal and the undersigned as corporate surety, are held firmly bound unto the City of Beaumont and all contractors, subconUactors, laborers, materialmen, and other persons employed in the performance of the said agreement and referred to at Title 3 (commencing with Section 9000, et seq.) of Part 6 of Division 4 of the Civil Code in the sum of Forty -Five Thousand and no/100 dollars ($ 45,000.00 ), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this work or labor, that the Surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000, et seq.) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond.

Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect.

The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration, or addition.
[signatures on following page]

Payment Bond 30240653
Page Two (2)
IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on the 14th day of March , 20 25 .
(Seal) (Seal)
The Continental Insurance Company
SURETY 1 PRINCIPAL
Tri Pointe Homes IE-SD, Inc.

By: By:

Name: Michelle Haase
Title: Attorney -in -Fact
Name:

Title:

Address: 2 Park Plaza, Suite 400 By:

Irvine, CA 92614 Name:

Title:

Address: 1250 Corona Pointe Court, Suite 600
Corona, CA 92879

ALL SIGNATURES MUST BE ACKNOWLEDGED BEFORE A NOTARY PUBLIC

ALL- PURPOSE

CERTIFICATE OF ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document State of California }
County of Orange
On MAR 1 4 202S before me, _
personally appeared Michelle Haase
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
}
Sarah E. Campbell, Notary Public
(Here Insect mils err U 100 Aare alitet)
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
and a , official seal.

ADDITIONAL O
SARAH E. CAMPBELL
Notary Public - California
Los Angeles County ₹
Commission $ 2491 647
My Comm. Expires Jun 27.2028
(Notary Public Seal)

TIONAL INFORMAT ON INSTRUCTIONS FOR COMPLETING THIS FORM

DESCRIPTION OF THE ATTACHED DOCUMENT
(Tieadelalplonofelected domed)
(Tile or description of attached &west oodi ued)
Number of Pages Document Dale

CAPACITY CLAIMED BY THE SIGNER
❑ Individual (s)
❑ Corporate Officer
(Title)
❑ Partner(s)
❑ Attomey-in-Fad
❑ Trustee(s)
❑ Other
2015 Version vhwt_NotaryClasses.com 809-873-9865
TAitt forme complier with current California statutes regarding notary wording and if need should be °corked and atiochedto the document Ackltolwe gents from other states may b completed for drat menus being sett to that does so long as the wording does not require the Callifwnia notary to violate California notary law. • State and County information trust be the State and County where the document signer(s) personally appeared before the molar/ public for seknowledgment • Date of notarization must be the date that the signea(s) personally appeared which must also be the same date the admowledgment is cornphtsd. • The notary public 'lint pried his or her none as it appears within his or her commission followed by a comma and then your tide (nary public). • Print the uame(s) of document sigewr(s) who personally appear at the time of aolariadian.
• hdicale the correct singular or phial forms by crossing off incorrect foams (i.e_ i.dsbehL.-y, - is /are ) or circling the correct forms. Failure to correctly indicate this information may lead to rejection of document trcordirg • The notary seal impression must be clad *ad photographically reproducible. hnpression must not cows text or lines. If seal impression smudges, reseal if a sufficient area permits, otherwise complete a different acknowledgment form • Signature of the notary public mast catch the signature on file with the office of the county click.
.+ Additional infix (nation is not rcquied but could hip to ensure this aclmowdodsmait is not misused or attached to a different docent.

Indicate title or type of attached document marker of pages and daft.

Indicate the aepsciy claimed by the signer. If the chimed atrocity is a corporate officer, initiate the title (ie. CEO, CFO, Secretary). • Securely attach this document to the signed document with a staple.

POWER OF ATTORNEY APPOINTING INDIVIDUAL ATTORNEY -IN -FACT Know Al Men By These Presents, That The Continental Insurance Company, a Pennsylvania insurance company, is a duly organized and existing insurance company having its principal office in the City of Chicago, sad State of Illinois, end that it does by virtue of the signature and seal herein affixed hereby make, constitute and appoint
Marina Tapia, Janina Monroe, Michelle Haase, Timothy J Noonan, Edward C Spector, Aidan Smock, Jaren A Mari, Erin Brown, Charles R Teter III, Simone Gerhard, B Altman, K D Wapato, Rachel A Mullen, D Garcia, Sandra Corona, Jennifer Ochs, Ethan Spector, Sarah Campbell, Individually
of Irvine, CA, its true and lawful Attorney(s)-in-Fact with full powcr and authority hereby conferred to sign, seal and =ode for and on its behalf bonds, undertakings and other obligatory instruments of similar nature
- In Unlimited Amounts -
and to bind them thereby as fully and to the same extent as if such instruments were signed by a duly authorized officer of the insurance company and all the acts of said Attorney, pursuant to the authority hereby given is hereby retifred and coafmncd.

This Power of Attorney is made and executed pursuant to and by authority of the Authorizing By -Laws and Resolutions printed at the bottom of this page, duly adopted, as indicated, by the Board of Directors oldie insurarx company.

Ia Witness Whereof The Continental Insurance Company has caned these presents to be signed by its Vice President and its corporate seal to be hereto affixed on this 29th day of April, 2024. f..l.p .
•1ps. The Continental Tnsu ance Company
State of South Dakota, County of Minnebaha, ss: '''.,.."' On this 29th day of April, 2024, before me personally came Larry Kasten to me known, who, being by me duly sworn, did depose and say: that he resides in the City of Sioux Falls, State of South Dakota; that be is a Vice President of The Continental Insurance Company, a Pennsylvania insurance company, described in and which executed the above instrument; that he knows the seal of said insurance company; that the sal affixed to the said instrument is such corporate seal; that it was so affixed pursuant to authority given by the Board of Directors of said insurance company and that he signed his name thereto pursuant to like authority, and acknowledges same to be the act and deed of said insurance company.

Kapt7
Vice President
M. BENT
si=wouaar masue/Chl
▪ saurhu DAKOIRWILI
My Commission Expires March 2, 2026
ie)? 6.„"—
M. Bent Notary Public

CERTIFICATE
i, Paula Kolsrud, Assistant Secretary of The Continental Insurance Company, a Pennsylvania insurance company, do hereby certify that the Power of Attorney herein above set forth is still in force, and further certify that the By -Law and Resolutions of the Board of Directors of the insurance company printed below this certificate are still in force. In testimony whereof I have hereuntc :. • and affixed the seal of the said insurance company this 14th day of March, 2025. • • The Continental Insurance Company
Gds, K&ecavud
,tip a +`ti. Paula Kolsrud Assistant Secretary
Authorizing By -Laws and Resolutions
ADOPTED BY THE BOARD OF DIRECTORS OF THE CONTINENTAL INSURANCE COMPANY:

This Power of Attorney is made and executed pursuant to and by authority of the following resolution duly adopted by the Board of Directors of the Company at a meeting held on May 10, 1995.
"RESOLVED: That any Senior or Group Vice Presided may authorize an officer to sign specific documents, agreements and instruments on behalf of the Company provided that the name of such authored officer and a description of the documents, agreements or instruments that such officer may sign will be provided in writing by the Senior or Group Vice President to the Secretary of the Company prior to such execution becoming effective.

This Power of Attorney is signed by Larry Kasten, Vice President, who has been authorized pursuant to the above resolution to execute power of attorneys on behalf of The Continental Insurance Company.

This Power of Attorney is signed and sealed by farsimmie under and by the authority of the following Resolution adopted by the Board of Directors of the Company by unanimous written consent dried the 25e day of April, 2012. "Whereas, the bylaws of the Company or specific resolution of the Board of Directors has authorized various officers (the "Authorized Officers") to execute various policies, bonds, undertakings and other obligatory instruments of like nature; and Whereas, from time to butt, the signature of the Authorized Officers, in addition to being provided in original, hard copy format, may be provided via facsimile or otherwise in an electronic format (collectively, "Electronic Signatures"), Now therefore be it resolved: that the Electronic Signature of any Authorized Officer shall be valid end binding on the Compeer "
This Power of Attorney may be signed by digital signature and sealed by a digital or otherwise electronic -formatted corporate seal under and by the authority of the following Reso1utki adopted by the Board of Directors of the Company by unanimous written consent dated the 27' day of April, 2022:
"RESOLVED That it is in the best interest of the Company to periodically ratify and confirm any corporate documents signed by digital signatures and to ratify and confirm the use of a digital or otherwise ekctroniaformettcd corporate seal, each to be considered the act and deed of the Company." Fong F68506-2023

BEAUMONT

O R N I A -
Staff Report
TO: City Council
FROM: Robert L. Vestal, Public Works Director
DATE: March 18, 2025
SUBJECT: Public and Private Easement Recordation
Description Record a Public and Private Easement across the 6.26 -acre, city -owned parcel identified with APN:424-010-007, located north of Fourth Street and west of Potrero Blvd.

Background and Analysis:

The City of Beaumont acquired the 6.26 -acre parcel in March 2025. The proposed public easement, as shown in Figure 1 will provide access to the public at large to and from the Fourth Street public right-of-way. The alignment of the proposed public easement coincides with an existing dirt path of travel and an existing driveway.

The City will also separately record a private access easement in favor of CARMEN HALL, AS TRUSTEE OF THE JACK T. HALL AND CARMEN HALL REVOCABLE TRUST CREATED ON 12 AUGUST 1993 AS TO AN UNDIVIDED ONE-HALF (1/2) INTEREST AND CARMEN HALL, TRUSTEE OF THE JACK T. AND CARMEN HALL MARITAL TRUST DATED MARCH 16, 1994 AS TO AN UNDIVIDED ONE-HALF (1/2) INTEREST ("Hall"), over the same area shown in Figure 1. Hall is the owner of the property sitting to the north of the 6.26 -acre parcel recently acquired by the City. The private access easement will provide access from Fourth Street to the property owned by Hall.

APN 424 - Ow 079
EAST p/7 or THE WEST P 2 OF THE NOvTH .4sr
t 4 or SECTTOA+ 7. 7 . 5,f R. F W.. 5.�.M.
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424 - plc -007
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{ P'£fi OOC NQ. 2016 -0022 7312. O,'P.}
L'=,4 4/I
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Figure 1- Depiction Proposed Public and Private Easement Fiscal Impact:

The estimated cost to prepare this staff report is $350.

No public improvements are proposed in association with the proposed easement recordation at this time.

Recommended Action:

Record a Public and Private Easement across the 6.26 -acre, city -owned parcel identified with APN:424-010-007.

Attachments:

A. Public Easement
B. Private Easement

RECORDING REQUESTED BY
WHEN RECORDED RETURN TO:

CITY OF BEAUMONT
Beaumont Civic Center
550 E. 6th Street
Beaumont, CA 92223
Attn: City Manager
FREE RECORDING:

This instrument is for the benefit of the City of Beaumont, and is entitled to be recorded without fee or tax. (Govt. Code 6103, 27383 and Rev. & Tax Code 11922)
APN: 424-010-007 (Portion of) Above Space for Recorder's Use District
County
Route
Post Mile
08 RIV
60 69.5

GRANT OF EASEMENT
(Non -Exclusive Public Access Easement)
THE CITY OF BEAUMONT, a general law city and municipal corporation ("Grantor"), for valuable consideration, receipt of which is hereby acknowledged, hereby grants, to the public at large, for its use and enjoyment, a non-exclusive easement for pedestrian and vehicular access, ingress and egress, and for the transportation of equipment, improvements, goods, materials, and assets, over and across the real property more particularly described and depicted in the attached Exhibits "1" and "2", which are incorporated herein by this reference. (SIGNATURE PAGE FOLLOWS)
4903-4319-7224 vl

DATED:
, 2025 GRANTOR:

THE CITY OF BEAUMONT, a general law city
and municipal corporation
By:

Name:

Title:
4903-4319-7224 vl

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

STATE OF CALIFORNIA
)

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

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

WITNESS my hand and official seal.

Signature
(Seal)
4903-4319-7224 vl

EXHIBIT "1" TO GRANT OF EASEMENT

LEGAL DESCRIPTION OF BURDENED PROPERTY
Real property in the City of Beaumont, County of Riverside, State of California, described as follows:

That portion of the East l2lf of the West half of the Northeast quarter of Section 7_ Township 3 South, Range 1 West_ San Bernardino Meridian, in the City of Beaumont- County of Riverside_ State of California_ described as Parcel 6 in the Grant Deed recorded March 7, O014, as Document No_ 2014.- 0087313 of Official Records, in the office of the County Recorder of said County, described as follows:

BEGINNING at the intersection of the east line of the East half of the West half of said Northeast quarter of Section 7 with the easterly terminus of that certain course described as having a bearing of North Rga53 _i6_, DI and a lint of 62.73 fit in the IrreL'aoabk Riga of Way Offer of Dedication recorded June 02, 2016, as Document No_ 2016-0227312 of Said Official Records_ thence along said certain course also being the northerly line of Th Street_ South 88'53'2t" West 30.00 feet;
thence North °38'0g" West_ 31.97 feet to the beginning of a tangent curve_ concave southwesterly, havine a radius of 20.00 leer,
thenfie northwesterly 24.61 feet along said through a central angle of 70°29'33":
thence North 7I°0'41" West_ 42.45 feet to the bei2+ning of a tangent curve, concave northeasterly, L having a radius of 100.00 feet
thence northwesterly 1639 feet along said cur.'e through a central angle of 09°23'32":
thence North 61°41009" West, 61.56 feet ro the beginning of a tangent curve concave southwesterly_ having a radius of 100 00 feet:
thence northwesterly 17.62 feet along said cure through a central angle of 10°05'49":
thence North 71°49'58" West, 99.39 fret to the beginning of a tangent curse, concave northeasterly_ having a radius of 180.00 feet:
thence northwesterly 139.72 feet along said curve through a central angle of 44°224':
thence North 27¢21'34" West, 49.93 feet to the beginning. of a tangent curve concave northeasterly, having a radius of 200.00 feet
thence northwesterly 39.40 feet along said curiethrough s central angle of 11'17'15"; thence North 16°04'19" West, 39.19 feet to the begiiming of a tangent curare concave southwesterly, having a radius o€ 100.00 feet;
4903-4319-7224 vl
17336.00629\43056331.2

thence northwesterly 36.30 feet along said curve through a central angle of 20°48.00"= thence North 36°52' 0" West 81.99 feet to the northerly line of the land descn1ed in said Grant Deed:
thence along said northerly line. South 68'57'16" East. 56.48 feet; thence South 36952'20" East, 34.14 feet to the beginning of a tangent curse concave southwesterly_ having a radius of 130.00 feet;
thence southeasterly 47.19 feet along said curve through a central angle of 20°48'00"; thence South 16'04'I9" East 39.24 feet to the beginning of a tangent curve concave northeasterly. having a radius of 170.00 feet
thence southeasterly 33.49 feet along said curve through a central angle of 11'1715'; thence South 27°21'34" East, 49.43 feet to the beginning of a tangent curve concave uortheasterl_ having a radius of 150.00 feet
thence southeasterly 116.43 feet along said curve through a central angle of 44°28'24"; thence South 71949'58" East, 94.34 feet to the be nning of a tangent curve concave ]outhwesterly. having a radius of 130.00 feet
thence southeasterly 22.91 feet along said cure through a central angle of 10°05'44"; thence South 61°44'09" East, 61.56 feet to the beginning of a tangent curve concave northeasterly. having a radius of 70.00 feet;
thence southeasterly 11.47 feet along said curve through a central angle of 04°23'32"; thence South 71°07'41" East 77.79 feet to the ea sterh- line of the land described in said Grant Deed, - thence along said easterly line. South 00938'08" East, 67.05 feet to the PORT OF BEGINNING.

ContaininE.X0,211 square feet or 0.46 acres, mare or less.

As shown on Exhibit -B" attached hereto and made a part hereof Bearings and distances used in the above description are based on the California Coordinate System of 1983_ Zone 6, Epoch !004.00. Multiply all distances used in the above description by 1.0001028 to obtain ground level distances.
4903-4319-7224 vl
17336.00629\43056331.2

This real property description EilH been prepaaed at Mark Thomas, b me_ or imaer nwir direction_ in conformance with the Professional Lmc araeip-ors Act.
&.+912024
Teri IKahten_ PLS 3746 Date
4903-4319-7224 vl
17336.00629\43056331.2

EXHIBIT "2" TO GRANT OF EASEMENT

DEPICTION OF BURDENED PROPERTY
[See Attached]
49§3646@® 44(196331.2

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Exhibit PFBPF
�JyF TC PC;. 3,4PAN' LEGAL DEZCRPT1ON
{/f Ti7E Em Of ElEJ.All4rrr
COUNTY 1:hr RWE9 DE
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HARK THOMAS
49§3646@®-44(96331.2

ARN 424-010•-079
FAST 1/2 OF TIIE ,WEST! OF TJfF NOPT EAST
f.."-4 Of SECTION 7, T. 3 S., f°. 7 W.. 3.14.M.
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424-00-007
FA gCfL 6 FER
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(RJR DCC No. 20 6- 00227312. O.R.)
War TABLE
5t 55

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Exhibit "B"
1 J,T 11D'+tr17MPAN1 LG6'! DM FFTCN
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.1T,iTE ❑f CQJFI F IA
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49§3646@®-244(96331.2

RECORDING REQUESTED BY
WHEN RECORDED RETURN TO:

CITY OF BEAUMONT
Beaumont Civic Center
550 E. 6th Street
Beaumont, CA 92223
Attn: City Manager
FREE RECORDING:

This instrument is for the benefit of the City of Beaumont, and is entitled to be recorded without fee or tax. (Govt. Code 6103, 27383 and Rev. & Tax Code 11922)
APN: 424-010-007 (Portion of) Above Space for Recorder's Use District
County
Route
Post Mile
08 RIV
60 69.5

GRANT OF EASEMENT
(Non -Exclusive Access Easement)
THE CITY OF BEAUMONT, a general law city and municipal corporation ("Grantor"), for valuable consideration, receipt of which is hereby acknowledged, hereby grants, to CARMEN HALL, AS TRUSTEE OF THE JACK T. HALL AND CARMEN HALL REVOCABLE TRUST CREATED ON 12 AUGUST 1993 AS TO AN UNDIVIDED ONE- HALF (1/2) INTEREST AND CARMEN HALL, TRUSTEE OF THE JACK T. AND CARMEN HALL MARITAL TRUST DATED MARCH 16, 1994 AS TO AN UNDIVIDED ONE-HALF (1/2) INTEREST ("Grantee"), its agents, representatives, successors, and assigns, a non-exclusive easement for pedestrian and vehicular access, ingress and egress, and for the transportation of equipment, improvements, goods, materials, and assets, over and across the real property more particularly described and depicted in the attached Exhibits "1" and "2", which are incorporated herein by this reference.
(SIGNATURE PAGE FOLLOWS)
4921-3493-5081 vl

DATED:
, 2025 GRANTOR:

THE CITY OF BEAUMONT, a general law city
and municipal corporation
By:

Name:

Title:
4921-3493-5081 vl

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

STATE OF CALIFORNIA
)

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

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

WITNESS my hand and official seal.

Signature
(Seal)
4921-3493-5081 vl

EXHIBIT "1" TO GRANT OF EASEMENT

LEGAL DESCRIPTION OF BURDENED PROPERTY
Real property in the City of Beaumont, County of Riverside, State of California, described as follows:

That portion of the East l2lf of the West half of the Northeast quarter of Section 7_ Township 3 South, Range 1 West_ San Bernardino Meridian, in the City of Beaumont- County of Riverside_ State of California_ described as Parcel 6 in the Grant Deed recorded March 7, O014, as Document No_ 2014.- 0087313 of Official Records, in the office of the County Recorder of said County, described as follows:

BEGINNING at the intersection of the east line of the East half of the West half of said Northeast quarter of Section 7 with the easterly terminus of that certain course described as having a bearing of North ga53 _i6_, DI and a lint of 62.73 fit in the IrreL'aoabk Riga of Way Offer of Dedication recorded June 02, 2016, as Document No_ 2016-0227312 of Said Official Records_ thence along said certain course also being the northerly line of Th Street_ South 88'53'2t" West 30.00 feet;
thence North °38'0g" West_ 31.97 feet to the beginning of a tangent curve_ concave southwesterly, havine a radius of 20.00 leer,
thenfie northwesterly 24.61 feet along said through a central angle of 70°29'33":
thence North 7I°0'41" West_ 42.45 feet to the bei2+ning of a tangent curve, concave northeasterly, L having a radius of 100.00 feet
thence northwesterly 1639 feet along said cur.'e through a central angle of 09°23'32":
thence North 61°41009" West, 61.56 feet ro the beginning of a tangent curve concave southwesterly_ having a radius of 100 00 feet:
thence northwesterly 17.62 feet along said cure through a central angle of 10°05'49":
thence North 71°49'58" West, 99.39 fret to the beginning of a tangent curse, concave northeasterly_ having a radius of 180.00 feet:
thence northwesterly 139.72 feet along said curve through a central angle of 44°224':
thence North 27¢21'34" West, 49.93 feet to the beginning. of a tangent curve concave northeasterly, having a radius of 200.00 feet
thence northwesterly 39.40 feet along said curiethrough s central angle of 11'17'15"; thence North 16°04'19" West, 39.19 feet to the begiiming of a tangent curare concave southwesterly, having a radius o€ 100.00 feet;
4921-3493-5081 vl
17336.00629\43056331.2

thence northwesterly 36.30 feet along said curve through a central angle of 20°48.00"= thence North 36°52' 0" West 81.99 feet to the northerly line of the land descn1ed in said Grant Deed:
thence along said northerly line. South 68'57'16" East. 56.48 feet; thence South 36952'20" East, 34.14 feet to the beginning of a tangent curse concave southwesterly_ having a radius of 130.00 feet;
thence southeasterly 47.19 feet along said curve through a central angle of 20°48'00"; thence South 16'04'I9" East 39.24 feet to the beginning of a tangent curve concave northeasterly. having a radius of 170.00 feet
thence southeasterly 33.49 feet along said curve through a central angle of 11'1715'; thence South 27°21'34" East, 49.43 feet to the beginning of a tangent curve concave uortheasterl_ having a radius of 150.00 feet
thence southeasterly 116.43 feet along said curve through a central angle of 44°213'24"; thence South 71949'58" East, 94.34 feet to the be nning of a tangent curve concave ]outhwesterly. having a radius of 130.00 feet
thence southeasterly 22.91 feet along said cure through a central angle of 10°05'44"; thence South 61°44'09" East, 61.56 feet to the beginning of a tangent curve concave northeasterly. having a radius of 70.00 feet;
thence southeasterly 11.47 feet along said curve through a central angle of 04°23'32"; thence South 71°07'41" East 77.79 feet to the ea sterh- line of the land described in said Grant Deed, - thence along said easterly line. South 00938'08" East, 67.05 feet to the PORT OF BEGINNING.

ContaininE.X0,211 square feet or 0.46 acres, mare or less.

As shown on Exhibit -B" attached hereto and made a part hereof Bearings and distances used in the above description are based on the California Coordinate System of 1983_ Zone 6, Epoch !004.00. Multiply all distances used in the above description by 1.0001028 to obtain ground level distances.
4921-3493-5081 vl
17336.00629\43056331.2

This real property description EilH been prepaaed at Mark Thomas, b me_ or imaer nwir direction_ in conformance with the Professional Lmc araeip-ors Act.
&.+912024
Teri IKahten_ PLS 3746 Date
4921-3493-5081 vl
17336.00629\43056331.2

EXHIBIT "2" TO GRANT OF EASEMENT

DEPICTION OF BURDENED PROPERTY
[See Attached]
49210406 631096331.2

1'Hai 7f 'MIST
CIO PAY ALLFY BLrn

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Exhibit PrBPr
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{/fTi7EEJT1'DFDE LNIOrrr
COUNTY CM RWE9 DE
@TJ4i = 4F 1:61thIFORIALa
Ihka
HARK 711OMA1
492104062%310516331.2

ARN 424-010•-079
FAST 1/2 OF NE 'WEST ! OF TNF NoRrhi sr
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.
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(PER DCC NO. 20 6- 00227312. O.R.)

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Exhibit "B"
1 J,T 11D'+trD'7MPAN1 I Gb'! DEvOFFTiON
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.1T,iTE O CQJFORNIA
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492104062%310516331.2

BEAUMONT

O R N I A -
Staff Report
TO: City Council
FROM: Thaxton Van Belle, Director of Water Reclamation
Kenyon Potter, Principal Engineer
DATE March 18, 2025
SUBJECT: Beaumont Municipal Code Amendment to Chapter 13.08 "Sewer System" Description Public Hearing and consideration of proposed amendment to Beaumont Municipal Code Chapter 13.08 "Sewer System", more specifically Adding New Section 13.08.415 "Lift Station and Force Main Facilities".

Background and Analysis:

On December 17, 2024, staff reported to City Council that in the current fiscal year 2024/2025, the City expects to receive three new developer -built lift stations: Middle Oak Lift Station, Crossroads Lift Station, and Olivewood Lift Station. Further, another potential lift station known as Beaumont Area South is undergoing planning and will likely be developer -built. All of these will be public lift stations requiring the City to operate and maintain them.

At present the City's municipal code does not specifically address standards for lift stations or force mains. The development of these lift stations would have benefited from having clear standards to provide guidance to the development process.

To this end, staff has prepared a set of minimum standards and requirements, particularly for publicly owned lift stations and force mains. The recommendation is to hold a public hearing and consider an ordinance relating to such standards.

CEQA:

The City has analyzed this proposed project and has determined that it is exempt from the California Environmental Quality Act (CEQA) under section 15061(b)(3) of the CEQA Guidelines, which provide that CEQA only applies to projects that have the potential for causing a significant effect on the environment. The proposed ordinance in itself does not relate to any physical project and will not result in any physical change to the environment and does not affect the land use or density limitations of the General Plan. Therefore, it can be seen with certainty that there is no possibility that this

ordinance may have a significant adverse effect on the environment, and therefore, the adoption of this Ordinance is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines.

Public Comment Received:

A 10 -day public notice was placed in the Press Enterprise on March 8, 2025. At the time of report preparation, the Wastewater Department has not received any letters of comment from the public in favor or opposition to the project. Any comments received prior to the time of the scheduled City Council meeting will be provided to the City Council at the time of the public hearing. Proof of publication is included as Attachment C to this staff report.

Findings:

That the proposed zoning ordinance text amendment is consistent with the goals, policies, and objectives of the City's 2021 Wastewater Master Plan relating to lift stations and force mains.

Fiscal Impact:

The cost to prepare this staff report is approximately $400.00.

Recommended Action:

Hold a Public Hearing; and,
Waive the first full reading and approve by title only, "An Ordinance of the City Council of the City of Beaumont, California, amending Chapter 13.08 `Sewer System', by adding New Section 13.08.415 'Lift Station and Force Main Facilities' to the Beaumont Municipal Code".

Attachments:

A. Draft Ordinance
B. Proposed New Section 13.08.415 "Lift Station and Force Main Facilities" C. Proof of Publication

ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF BEAUMONT, CALIFORNIA,
AMENDING CHAPTER 13.08 "SEWER SYSTEM" OF THE BEAUMONT
MUNICIPAL CODE, BY ADDING NEW SECTION 13.08.415 "LIFT STATION AND FORCE MAIN FACILITIES".

WHEREAS, the City Council desires to amend the Beaumont Municipal Code to add Section 13.08.415 "Lift Station and Force Main Facilities" to further implement the 2021 Wastewater Master Plan and increase reliability and safety of the sewer system; and WHEREAS, the City has identified vulnerabilities in Lift Station and Force Main Facilities and the City has experienced public power shutoffs by the electric utility at multiple wastewater facilities in response to high winds that may disable the lift stations; WHEREAS, a duly noticed public hearing was conducted on this matter as required by law by the City Council on March 18, 2025; and
WHEREAS, the City Council of the City of Beaumont has reviewed the reasons for the recommendation of approval by the Planning Commission as described above;

THEREFORE, THE CITY COUNCIL OF THE CITY OF BEAUMONT DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1: The City Council hereby finds that the amendment to Chapter 13.08 "Sewer System", to add section 13.08.415 "Lift Station and Force Main Facilities", would further implement the 2021 Wastewater Master Plan and increase reliability and safety of the sewer system.

SECTION 2: The amendment of Chapter 13.08 "Sewer System" by adding section 13.08.415, attached hereto as Exhibit "A", is hereby approved.

SECTION 3: The City Council finds that the actions contemplated by this Ordinance are exempt from the California Environmental Quality Act ("CEQA") pursuant to 15061(b)(3), CEQA review is not required because there is no possibility that this Ordinance may have a significant effect upon the environment and the proposed amendments constitute a minor alteration in a land use limitation under CEQA Guidelines Section 15305, and such a land use limitation is a permissible exercise of the City's zoning powers.

SECTION 4: This Ordinance shall take effect thirty (30) days after its final passage and within fifteen (15) days after its passage the City Clerk shall cause a summary to be published in a newspaper of general circulation, printed and published in the City of Beaumont, in a manner prescribed by law for publishing of ordinances of said City.

MOVED AND PASSED upon first reading this 18th day of March, 2025, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

MOVED, PASSED AND ADOPTED this 1st day of April, 2025, upon second reading by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Mike Lara, Mayor
Attest:

Nicole Wheelwright, Deputy City Clerk
Approved as to form:

John 0. Pinkney, City Attorney

13.08.415 - Lift Station and Force Main facilities.

No sewer lift station shall be constructed in the City or connected to the system of sewers except in accordance with plans and specification approved by the City Manager or his or her designee. Notwithstanding any other requirements of the City, any such lift station and related force mains shall be designed and constructed, at a minimum, to comply with the requirements of the most recent editions of the California Plumbing and California Building Codes, and as required herein.

A private sewer lift station will not be allowed to be constructed in the City unless no alternative gravity sewer option exists and the private lift station will serve only a single legal parcel.

A public sewer lift station will not be constructed or maintained unless no alternative gravity sewer option exists and the size and layout of the public sewer lift station is designed to serve future development within the entire tributary basin as described in the City's Wastewater Master Plan. If a public lift station is constructed , the design and construction must include at a minimum the following elements subject to such additional conditions of approval specified by the Director of Public Works at time of project approval:
(a) SCADA with remote control and monitoring of equipment operations and alarm notification which is compatible and interoperable with the City's existing SCADA system;
(b) Wet well storage capacity of 1 hour to minimize pump and equipment cycling; (c) Pumping equipment shall have a firm capacity and additional standby capacity equal to largest pump within the sewer lift station;
(d) A Motor Control Center (MCC) for housing a Variable Frequency Drive for each pump; (e) Emergency generator backup with automatic transfer switchgear; (f) Dual force mains run underground and designed per American Water Works Association (AWWA) standards for pressure pipe;
(g) Minimum 2" water service to the sewer lift station and piping for fire protection of generator and motor control center;
(h) Space within perimeter wall of the sewer lift station for adequate combination vacuum truck access to maintain the wet well;
(i) Odor and Noise control systems as specified by the Director of Public Works; and (j) Site Security comprising at least a perimeter wall, wired cameras, motion sensors and security alarm monitoring and notification independent of SCADA system and other security devices customarily deployed for sewer lift stations.

The capacity of the lift station and its components and force mains shall be sized per City of Beaumont's Master Plan or a Sewer Area planning document approved by the City. The lift station shall have dual force mains. All of the elements described above shall be installed at the time of construction of the lift station. In addition, the City may set standards for each element of a private or public lift station.

THE PRESS -ENTERPRISE
KEEPYOUR EYES ON Ti Ih:'PRISE
pe.com
3512 14 Street
Riverside, California 92501
(951) 368-9229
[email protected]
City of Beaumont
550 E. 6th Street
Beaumont, California 92223
Account Number:

Ad Order Number:

Customer's Reference/PO Number:

Publication:

Publication Dates:

Total Amount:

Payment Amount:

Amount Due:

Notice ID:

Invoice Text:
5209298
0011722314
The Press -Enterprise
03/08/2025
$193.21
$0.00
$193.21
N h WabrE2rTcp90I QoeTn
NOTICE IS HEREBY GIVEN, that the City of Beaumont will conduct a public hearing to consider the matter described below. The City of Beaumont's public hearing will be held at 6:00 p.m. on Tuesday, March 18, 2025, at 550 East Sixth Street, Beaumont, California. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BEAUMONT, CALIFORNIA, AMENDING CHAPTER 13.08 "SEWER SYSTEM" OF THE BEAUMONT MUNICIPAL CODE, BY ADDING NEW SECTION 13.08.415 "LIFT STATION AND FORCE MAIN FACILITIES". This meeting will be open to the public and will be recorded for live streaming on the City's official YouTube webpage .

Please use the following link during the meeting for live stream access:

BeaumontCa.gov/Livestream Public comments will be accepted using the following options: 1. Emailed comments will be read aloud during the corresponding item of the meeting. Please submit your comments to [email protected] 2. In person public comments. 3. Call -in comments using a designated public comment phone line (951) 922-4845. City Council will conduct a public hearing to receive testimony and comments from all interested persons. Public comments shall not exceed three minutes unless otherwise authorized by City Council. Comments can be submitted any time prior to the meeting as well as during the meeting until the end of the corresponding item. Dated: March 8, 2025
Sewer System Ord - Page 1 of 1

THE PRESS -ENTERPRISE

KEEP YOUR EYES ON THE 'PRISE
Pe.PPm
The Press -Enterprise
3512 14 Street
Riverside, California 92501
(951) 368-9229
City of Beaumont
550 E. 6th Street
Beaumont, California 92223
Publication: The Press -Enterprise

PROOF OF PUBLICATION OF
Ad Desc: 0011722314
FILE NO. 0011722314

PROOF OF PUBLICATION
I am a citizen of the United States. I
am over the age of eighteen years and
not party to or interested in the above -
entitled matter. I am an authorized
representative of THE PRESS -
ENTERPRISE, a newspaper of general
circulation, printed and published daily
in the County of Riverside, and which
newspaper has been adjudicated a
newspaper of general circulation by the
Superior Court of the County of
Riverside, State of California, under
date of April 25, 1952, Case Number
54446, under date of March 29, 1957,
Case Number 65673, under date of
August 25, 1995, Case Number
267864, and under date of September
16, 2013, Case Number RIC 1309013;
that the notice, of which the annexed is
a printed copy, has been published in
said newspaper in accordance with the
instructions of the person(s) requesting
publication, and not in any supplement
thereof on the following dates, to wit:
03108/2025
I certify (or declare) under the penalty
of perjury that the foregoing is true and
correct.

Date: March 8, 2025.

At: Riverside, California
Signature
NOTICE IS HEREBY GIVEN, that the Clty of Beaumont will conduct a public hearing to consider the matter described below. The Clty of Beaumont's public hearing will be held at 6:00 p.m. on Tuesday, March 18, 2025, at 550 East Sixth Street, Beaumont, California.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
BEAUMONT CALIFORNIA, AMENDING CHAPTER 13.08
'SEWER SYSTEM' OF THE BEAUMONT MUNICIPAL CODE, BY
ADDING NEW SECTION 13.08.415 "LIFT STATION AND FORCE
MAIN FACILITIES".

This meeting will be open to the public and will be recorded for live streaming on the City's official YouTube webpage . Please use the following link during the meeting for live stream access:

Beau montCa.gov/Livestrea m
Public comments will be accepted using the following options:

1. Emalled comments will be read aloud during the corresponding item of the meeting. Please submit your comments to NicoleW@ BeaumontCa.gov

2. In person public comments.

3. Call -1n comments using a designated public comment phone line (951) 922-4845.

City Council will conduct a public hearing to receive testimony and comments from all interested persons. Public comments shall not exceed three minutes unless otherwise authorized by Clty Council.

Comments can be submitted any time prior to the meeting as well as during the meeting until the end of the corresponding Item.

Dated: March 8, 2025
The Press -Enterprise
Published: 3/8/25
Sewer System Ord - Page 1 of 1

BEAUMONT

O R N I A -
Staff Report
TO: City Council
FROM: Kari Mendoza, Administrative Services Director
DATE March 18, 2025
SUBJECT: Authorize Employment Contract with Economic Development Director Description Staff is requesting Council review and authorize the City Manager to sign the employment agreement with Kirk Pelser appointing him to the position of Economic Development Director
Background and Analysis:

One November 19, 2024, City Council authorized the addition of an Economic Development Director employment classification. Staff immediately engaged HR Dynamics & Performance Management Inc to assist the City with the search for the Economic Development Director. The position was advertised on Government Jobs, Western City Magazine, Jobs Available, Public CEO, California City News, California Association for Local Economic Development and social media. More than 20 qualified applications were received and reviewed, and an executive panel interviewed finalists.

A separate interview was held with the applicant and the City Manager. The panel and City Manager unanimously recommended the applicant, Kirk Pelser, be selected for the position of Economic Development Director.

Kirk has a Bachelor of Arts Degree in Economics from California State University, San Bernardino. He has a Master of Public Administration from the University of La Verne.

He has over 30 years of experience in both the public and private sector in various agencies with increasing responsibilities. He has spent the last 8 years as Economic Development Director for the City of Pomona assisting the City Manager with issues ranging from municipal real estate matters to tax incremental deferral agreements. The City Manager negotiated the terms of the employment contract, and the City Attorney has reviewed and approved the language in the contract.

Fiscal Impact:

The contract provides for an annual fully loaded fiscal impact of $258,817. The increase for the remainder of FY 24/25 is approximately $64,705 to be paid out of the

general fund for personnel costs. City staff estimates the cost to prepare this report was $510.

Recommended Action:

Approve the employment agreement with Kirk Pelser for the Economic Development Director and authorize the City Manager to sign the agreement.

Attachments:

A. Employment Agreement

ECONOMIC DEVELOPMENT DIRECTOR EMPLOYMENT AGREEMENT
This ECONOMIC DEVELOPMENT DIRECTOR EMPLOYMENT
AGREEMENT (hereinafter referred to as the "AGREEMENT") is entered into and made effective the 18th day of March 2025, by and between the CITY OF BEAUMONT, (hereinafter referred to as the "CITY"), and Kirk Pelser, an individual (hereinafter referred to as "EMPLOYEE"). For purposes of this AGREEMENT, CITY and EMPLOYEE may be collectively referred to as the "Parties" or individually as a "Party."

RECITALS

ECONOMIC DEVELOPMENT DIRECTOR
WHEREAS, based on EMPLOYEE's executive and administrative qualifications and ability, the CITY MANAGER desires to appoint EMPLOYEE to serve as the ECONOMIC DEVELOPMENT DIRECTOR for CITY; and
WHEREAS, EMPLOYEE desires to perform and assume responsibility for the provision of ECONOMIC DEVELOPMENT DIRECTOR services to CITY; and
WHEREAS, the Parties wish to establish the terms and conditions of EMPLOYEE's provision of professional services to CITY through this AGREEMENT.

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, CITY and EMPLOYEE hereby agree as follows:

1. POSITION, DUTIES AND TERM.

1.1 Incorporation of Recitals. The above recitals are incorporated herein and made a part of this Agreement.

1.2 Position. EMPLOYEE accepts employment with CITY as its ECONOMIC DEVELOPMENT DIRECTOR and shall perform all functions, duties and services set forth in Section 1.5 (Duties) of this Agreement.

1.3 Effective Date of Agreement/Term. This Agreement is for an unspecified term and is subject to the "At -Will" provision in Section 1.4 and termination provision in Section 4.

1.4 Employment with CITY "At -Will".
(a) EMPLOYEE's employment status with CITY shall be at -will and terminable with or without cause, at the CITY'S unilateral discretion. EMPLOYEE shall serve at the pleasure of the City Manager. EMPLOYEE acknowledges, understands and agrees that EMPLOYEE may not avail himself/herself of any procedures, provisions or protections set forth under CITY's Employment Policies, as defined herein, in so far as such procedures, provisions or protections limit, restrict, modify, prohibit or regulate EMPLOYEE's status as an "at -will" 1

employee of CITY or the ability of the City Manager to terminate EMPLOYEE's employment at any time for cause or for convenience and without cause. For purposes of this Agreement, the capitalized term "Employment Policies" means and refers to any ordinance, resolution, regulation, rule, memorandum of understanding, or other written policy of CITY as the same maybe amended, modified or supplemented from time -to -time, and any written employment manual of the CITY which governs, regulates or otherwise relates to employment with CITY. CITY's Employment Policies shall not apply to EMPLOYEE in so far as such Employment Policies limit, restrict, modify or regulate (or may be interpreted to limit, restrict, modify or regulate) EMPLOYEE's status as an "at -will" employee of CITY. EMPLOYEE shall otherwise comply will all Employment Policies established by the CITY.
(b) Except as otherwise provided under Section 4 (Termination) of this Agreement, EMPLOYEE shall not be entitled to any pre -termination hearing or other similar proceeding or appeal proceeding as a precondition to any decision or action by the City Manager to terminate EMPLOYEE's employment whether for cause or for convenience and without cause.

EMPLOYEE shall also not be entitled to any post -termination appeal proceedings. (c) Nothing in this Agreement shall confer upon EMPLOYEE any right to any property interest in continued employment with CITY.

1.5 Duties. EMPLOYEE shall serve as the ECONOMIC DEVELOPMENT DIRECTOR and shall be vested with the powers, duties and responsibilities of the ECONOMIC DEVELOPMENT DIRECTOR as set forth in Exhibit "A" as well as the Beaumont Municipal Code, as the same may be amended or modified from time -to -time by the City Council, the California Code, and CITY's policies and procedures approved by the City Council, as may be provided from time to time. EMPLOYEE's performance of EMPLOYEE's duties shall be subject to the direction of the City Manager. It is the intent of the Parties that the ECONOMIC DEVELOPMENT DIRECTOR keeps the City Manager fully informed of all significant operations or major undertakings of the Economic Development Department ("Department").

EMPLOYEE shall provide the City Manager with regular status reports on the operations and activities of EMPLOYEE'S Department. EMPLOYEE shall perform such duties as are customary and appropriate to the position of ECONOMIC DEVELOPMENT DIRECTOR as well as such special duties as may be assigned to ECONOMIC DEVELOPMENT DIRECTOR from time to time by the City Manager. Notwithstanding EMPLOYEE's duties as ECONOMIC DEVELOPMENT DIRECTOR, nothing in this Agreement shall be construed to prohibit direct communications between the City Manager and employees within EMPLOYEE'S Department.

EMPLOYEE shall attend all City Council meetings, unless excused or directed otherwise by the City Manager.

1.6 Work Hours. The position of ECONOMIC DEVELOPMENT DIRECTOR is an exempt position under state and federal wage and hour laws. EMPLOYEE's compensation (whether salary or benefits or other allowances) is not based on hours worked. EMPLOYEE shall not be entitled to any compensation for overtime, missed meal or rest periods, reporting time, or any other wage and hour benefits conferred upon non-exempt employees under state or federal wage and hour laws, including regulations propounded in applicable Industrial Welfare Orders.

EMPLOYEE is expected to engage in those hours of work that are necessary to fulfill the 2

obligations of the ECONOMIC DEVELOPMENT DIRECTOR's position. The ECONOMIC DEVELOPMENT DIRECTOR does not have set hours of work as the ECONOMIC DEVELOPMENT DIRECTOR is expected to be available at all reasonable and relevant times.

1.7 Regional and Professional Activities. CITY desires that EMPLOYEE be reasonably active in professional organizations that will promote the standing of CITY and advance CITY 's goals, interests and policy objectives while also providing EMPLOYEE with opportunities for the type of professional development that will enhance EMPLOYEE'S ability to serve CITY and perform EMPLOYEE'S duties as ECONOMIC DEVELOPMENT DIRECTOR.

Toward this end, EMPLOYEE may, upon reasonable notice and approval by the City Manager, join professional organizations and participate in the activities of such organizations in so far as such participation promotes the interests of CITY and does not unduly interfere with the performance of EMPLOYEE's duties as ECONOMIC DEVELOPMENT DIRECTOR. CITY agrees to budget and, consistent with that budget, pay for the dues, conference and travel fees, and subscriptions of the ECONOMIC DEVELOPMENT DIRECTOR necessary for EMPLOYEE'S participation in national, statewide, regional or professional organizations.

1.8 Non -CITY Activities. In accordance with Government Code Section 1126, during the period of EMPLOYEE'S employment, EMPLOYEE shall not accept, without the express prior written consent of the City Manager, any other employment or engage, directly or indirectly, in any other business, commercial, or professional activity (except as permitted under Section 1.7 (Regional and Professional Activity), whether or not for pecuniary advantage, that is or may be competitive with CITY, that might cause a conflict of interest with CITY, or that otherwise might interfere with the business or operation of CITY or the satisfactory performance of EMPLOYEE's duties as ECONOMIC DEVELOPMENT DIRECTOR.

1.9 Restriction on Outside Business Activities. During his employment, EMPLOYEE shall devote his full business time, energy, and ability exclusively to the business and interests of CITY, and shall not, without prior written consent of City Manager, render services to others of any kind for compensation, or engage in other business activity that would materially interfere with the performance of EMPLOYEE'S duties under this Agreement, except that:
(a) The expenditure of reasonable amounts of time, not in conflict with the CITY'S needs and interests, for educational, charitable, Economic, and professional enhancement activities, shall not be deemed a breach of this Section 1.9 and shall not require prior consent; and (b) This Agreement shall not be interpreted to prohibit EMPLOYEE from making passive, personal investments or conducting private affairs in those activities that do not materially interfere with the EMPLOYEE'S duties under this Agreement or create or result in conflicts of interests with CITY.

2. COMPENSATION AND BENEFITS AND REIMBURSEMENTS.
3

2.1 Base Salary. Commencing on the employees start date, EMPLOYEE shall receive a base annual salary of Two Hundred Eight Thousand Three Hundred Seventy Four and Thirty Six cents ($208,374.36) per year, (hereinafter, the "Base Salary"). The Parties understand and agree that the amount of the Base Salary, as preliminarily established for the year 2025, may be adjusted from time -to -time by the CITY MANAGER following a performance evaluation, as provided for in Section 2.2 (below). In no event shall EMPLOYEE's base salary adjust automatically pursuant to any mechanism, and in no event shall EMPLOYEE's base salary exceed the maximum amount approved by the City Council, including in the CITY's Salary Chart or any other salary table or other document that may be adopted by the City Council in the future. The Base Salary shall be payable in bi-weekly installments at the same time and in the same manner as other management employees of CITY. EMPLOYEE's salary shall be subject to customary withholding for taxes and other required deductions.

2.2 Performance Review. Annually on or before the anniversary date of execution of this Agreement, the City Manager will undertake a job performance review of EMPLOYEE. In connection with such performance review, the City Manager may consider any adjustments in EMPLOYEE's compensation consistent with the CITY's Salary Chart. The failure of CITY to undertake a performance evaluation shall not limit CITY's ability to terminate this Agreement pursuant to Section 4 (Termination).

2.3 Benefits. In addition to Base Salary, CITY shall also provide EMPLOYEE with the following benefits:
(a) Cafeteria Plan, Dependent Care Flexible Spending Account, Life and Short Term Disability Insurance, Vacation Accrual, Sick Leave, Public Employees Retirement System (PERS) Eligibility, and Reimbursements. EMPLOYEE shall be provided with these benefits to the same extent as those benefits are provided to the members of the Non -represented Managers Group, whether as described in the Managers Group MOU referred to in the Recitals or in the City's Employment Policies, whichever is applicable, as those documents may be modified or amended from time to time.

2.4 Vehicle Allowance. EMPLOYEE shall be provided, during the term of this Agreement and in addition to other salary and benefits herein provided, the sum of three hundred fifty dollars ($350.00) a month, as a vehicle allowance to be used to purchase, lease or own, operate and maintain a vehicle. EMPLOYEE shall be responsible for paying for liability, property damage and comprehensive insurance coverage upon such vehicle and shall further be responsible for all expenses attendant to the purchase, operation, maintenance, repair and regular replacement of said vehicle

2.5 Jury Duty. EMPLOYEE will receive Base Salary and benefits while responding to a jury summons or serving on a jury. Any compensation for such jury duty (except travel pay) shall be remitted to CITY.

2.6 Business Related Ecuipment. CITY shall also provide EMPLOYEE a smart phone and personal computer (at work) for use in connection with CITY business. CITY shall be responsible for maintenance of said items.
4

2.7 Participation in Additional CITY Programs. EMPLOYEE shall be eligible to participate in any other CITY programs/employment benefits to the extent they are offered to non -represented CITY management employees, including but not limited to, the bilingual program or deferred compensation plan.

2.8 Administrative/Personal Leave. EMPLOYEE shall be allocated a maximum of forty (40) hours of administrative/personal leave on July 1st of each CITY fiscal year. The maximum amount of administrative/personal leave that EMPLOYEE may accrue at any given time may not exceed eighty (80) hours total. EMPLOYEE may request payment of up to forty (40) hours banked administrative leave pay, to be paid by separate check, per calendar year.

Requests for payment of banked administrative leave pay should be submitted in accordance with the procedure stated in the Managers Group MOU.

3. ILLNESS OR INJURY; DISABILITY AND DEATH.

3.1 Cessation of Work Due to Injury or Disability. In addition to any right of termination set forth under Section 1.3 (Employment With CITY "At -Will"), above, CITY also reserves the right to terminate EMPLOYEE's employment along with this Agreement if EMPLOYEE ceases to work as a result of injury or disability which results in Employee being unable to perform the essential duties of the ECONOMIC DEVELOPMENT DIRECTOR position, with or without accommodation, for a period of six (6) consecutive months or more, as documented by a healthcare provider. The foregoing notwithstanding, CITY may terminate EMPLOYEE if, in the CITY'S unilateral discretion, the disability poses a direct threat to the safety of CITY, EMPLOYEE or any other employees working for CITY and any reasonable accommodation attempted by CITY would not mitigate or eliminate such a threat. CITY will not provide a severance payment if EMPLOYEE is terminated under this Section of this Agreement.

3.2 Compensation for Work -Related Illness or Injury. In the event EMPLOYEE suffers a physical or mental illness or disability arising out of the course of employment, EMPLOYEE's exclusive remedy or remedies against CITY for such illness, injury or disability shall be those legally allowed under the workers' compensation laws of the State of California.

The Parties further agree that the California Workers Compensation Appeals Bo and shall be the exclusive venue for any claim of physical or mental illness or disability arising out of the course of EMPLOYEE'S employment with the CITY.

3.3 Medical Examination. EMPLOYEE agrees to submit to a medical and/or psychological examination by a qualified physician or psychiatrist selected by CITY, in the event the CITY determines a medical and/or psychological examination is needed to make a decision under Sections 3.1 through 3.2. CITY and EMPLOYEE shall receive a copy of all medical reports related to the examination.

3.4 Death of Employee. This Agreement along with EMPLOYEE's employment shall terminate automatically upon EMPLOYEE's death.
5

3.5 Compensation Upon Termination. Except as otherwise provided under this Agreement, if EMPLOYEE's employment is terminated pursuant to this Section 3 (Illness or Injury; Disability and Death), CITY shall pay EMPLOYEE all Base Salary, benefits, and compensation due and owing EMPLOYEE through the last day actually worked. If termination is caused by EMPLOYEE's death, CITY shall provide the compensation and benefits otherwise due EMPLOYEE to EMPLOYEE's executor, administrator, heirs, personal representatives, successors, and assigns. CITY will not provide for severance pay if EMPLOYEE is terminated under the provisions of Section 3.1 through 3.5, above.

4. TERMINATION.

4.1 Termination by CITY for Convenience and Without Cause. EMPLOYEE is appointed and serves at the pleasure of the CITY as an at will employee. The CITY may terminate EMPLOYEE at any time for convenience and without cause. In the event EMPLOYEE is terminated without cause, at or during such time that EMPLOYEE is willing and able to perform his duties under this AGREEMENT, then in that event, CITY agrees to pay EMPLOYEE a severance equal to six months base salary, less any and all applicable or legally required deductions, provided EMPLOYEE has executed a full and final release of any and all actual or potential claims (including Civil Code Section 1542 release) that EMPLOYEE has or could have against CITY, its officials, employees and agents, acceptable to city in form and content. Notwithstanding anything herein to the contrary, the maximum severance EMPLOYEE may receive under this AGREEMENT shall not exceed the limitations provided for in Government Code Section 53260-53264 or other applicable law.

4.2 Termination by Employee. EMPLOYEE may terminate EMPLOYEE'S employment for any reason, and at any time, with or without cause, by providing CITY with written notice. EMPLOYEE shall not receive a "severance payment" in the event EMPLOYEE terminates his/her employment with CITY pursuant to this Section 4.2.

4.3 Termination for Cause by CITY. CITY may immediately terminate EMPLOYEE's employment with CITY and this Agreement at any time by providing EMPLOYEE written notice of EMPLOYEE'S termination for cause and the reason(s) for the termination, and an opportunity for a discussion with the City Manager or the City Manager's designee. In the event the City Manager and EMPLOYEE are unable to resolve any disagreement regarding the cause for EMPLOYEE'S termination, the Parties agree to binding arbitration as provided in Section 6. No "severance payment" shall be paid in the event EMPLOYEE' s employment is terminated for cause, except that CITY shall pay EMPLOYEE for EMPLOYEE'S accrued and unused vacation, sick and administrative leave, as provided for in this Agreement. The term "cause" shall be defined to include any misconduct materially related to performance of official duti es, including but not be limited to any of the following: 1) breach of this AGREEMENT, 2) willful or persistent breach of duties, 3) resume fraud or other acts of material dishonesty, 4) unauthorized absence or leave not otherwise supported by valid documentation from a healthcare provider, 5) conviction of a misdemeanor involving moral turpitude (i.e., offenses contrary to justice, honesty, or morality), conviction of a misdemeanor DUI, or conviction of a felony under California law (the CITY may, in its discretion, place EMPLOYEE on paid or unpaid administrative leave until resolution of charges brought against EMPLOYEE), 6) violation of the 6

CITY's anti -harassment policies and/or a finding that EMPLOYEE engaged in legally prohibited personal acts of harassment, discrimination, and/or retaliation against a CITY official, CITY employee, or any individual protected by state or federal laws prohibiting harassment, discrimination, and/or retaliation, 7) violation of the CITY 's Municipal Code, ordinances, rules or regulations, including but not limited to the CITY 's Rules and Regulations and Administrativ e Policies, 8) use or possession of illegal drugs, 9) engaging in conduct tending to bring embarrassment or disrepute to the CITY, 10) any illegal or unethical act involving personal gain, 11) pattern of repeated, willful and intentional failure to carry out materially significant and legally constituted directions or policy decisions of the City Council or City Manager, and 12) gross misfeasance or gross malfeasance. Ifthe CITY terminates for cause this AGREEMENT and the services of EMPLOYEE hereunder, EMPLOYEE shall not be entitled to assume any further position or employment with the CITY.

4.4 Termination Obligation. EMPLOYEE agrees that all property, including without limitation, all equipment, tangible, Proprietary Information (as defined below), documents, records, notes, contracts, and computer -generated materials furnished to or prepared by EMPLOYEE incident to EMPLOYEE'S employment are the property of CITY and shall be returned promptly to CITY upon termination of EMPLOYEE's employment. EMPLOYEE's obligations under this subsection shall survive the termination of EMPLOYEE'S employment and the expiration or early termination of this Agreement.

4.5 Benefits Upon Termination. All benefits to which EMPLOYEE is entitled under this Agreement shall cease upon EMPLOYEE's termination in accordance with this Section 4 (Termination), unless expressly continued under this Agreement, under any specific written policy or benefit plan applicable to EMPLOYEE, under any other agreement for the continued provision of benefits, or unless otherwise required by law.

5. CONFLICT OF INTEREST.

5.1 EMPLOYEE shall not, during the term of this Agreement, individually, as a partner, joint venture, officer or shareholder, invest or participate in any business venture conducting business in the corporate limits of CITY, except for stock ownership in any company whose capital stock is publicly held and regularly traded, without prior approval of the City Manager and City Council. EMPLOYEE shall also be subject to the conflict of interest provisions of the Government Code of the State of California, the CITY's Municipal Code, and any other conflict of interest regulations applicable to EMPLOYEE's employment with CITY. For and during the Term of this Agreement and any extension term, EMPLOYEE further agrees that except for a personal residence or residential property acquired or held for future use as EMPLOYEE'S personal residence, EMPLOYEE will not invest in any other real estate or property improvements within the corporate limits of CITY without the prior consent of the City Manager and City Council.

6. ARBITRATION OF DISPUTES.
7 Page224of789

Any claim, dispute, or controversy which would otherwise require or allow resort to any court or other governmental dispute resolution forum between EMPLOYEE and CITY arising from, related to, or having any relationship or connection whatsoever with Employees employment or the terms of this Agreement, whether based on tort, contract, statutory, or equitable law, or otherwise, shall be submitted to and determined exclusively by binding arbitration under the Federal Arbitration Act, in conformity with the procedures of the California Arbitration Act (Cal.

Code Civ. Proc. sec 1280 et seq.), including section 1283.05 and all of the Acts other mandatory and permissive rights to discovery); provided, however, that: in addition to requirements imposed by law, any arbitrator herein shall be a retired California Superior Court Judge and shall be subject to disqualification on the same grounds as would apply to a judge of such court. If for any reason the Parties cannot agree to an arbitrator, either Party may apply to a court of competent jurisdiction with authority over the location where the arbitration will be conducted for appointment of a neutral arbitrator. The court shall then appoint an arbitrator, who shall act under this agreement with the same force and effect as if the Parties had selected the arbitrator by mutual agreement.

The arbitrator shall then prescribe the rules and procedures for the arbitration process in accordance with laws that are applicable to the claim being raised. EMPLOYEE understands that by agreeing to this binding arbitration provision, both CITY and EMPLOYEE give up their right to a trial by jury.

7. GENERAL PROVISIONS.

7.1 Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be effective upon delivery by hand or three (3) business days after deposit in the United States mail, postage prepaid, certified or registered, and addressed to CITY at the address below or at the last known address maintained in EMPLOYEE personnel file. EMPLOYEE agrees to notify CITY in writing of any change in EMPLOYEE'S address during EMPLOYEE'S employment with CITY. Notice of change of address shall be effective only when accomplished in accordance with this Section.

CITY's Notice Address:

City of Beaumont
550 East Sixth Street
Beaumont, CA 92223
ECONOMIC DEVELOPMENT DIRECTOR's Notice Address:

Kirk Pelser
(Last listed address in employee's personnel file)

7.2 Bonding. CITY shall bear the full cost of any fidelity or other bonds required of the ECONOMIC DEVELOPMENT DIRECTOR to perform his duties under any laws or ordinance. 8

7.3 Entire Agreement. This Agreement is intended to be the final, complete, and exclusive statement of the terms of EMPLOYEE's employment by CITY. This Agreement supersedes all other prior and contemporaneous agreements and statements, whether written or oral, express or implied, pertaining in any manner to the employment of EMPLOYEE, and it may not be contradicted by evidence of any prior or contemporaneous statements or agreements. To the extent that the practices, policies, or procedures of CITY, now or in the future, apply to EMPLOYEE and are inconsistent with the terms of this Agreement, the provisions of this Agreement shall control. However, as noted in Section 2.7 above, EMPLOYEE shall be eligible to participate in any other CITY programs/employment benefits to the extent they are offered to non -represented CITY employees.

7.4 Amendments. Except as otherwise provided herein, this Agreement may not be amended except in a written document signed by EMPLOYEE, approved by the City Manager and signed by the City Attorney.

7.5 Waiver. Failure to exercise any right under this Agreement shall not constitute a waiver of such right.

7.6 Assignment. EMPLOYEE shall not assign any rights or obligations under this Agreement. CITY may, upon prior written notice to EMPLOYEE, assign its rights and obligations hereunder.

7.7 Severability. If any court of competent jurisdiction holds any provision of this Agreement to be invalid, unenforceable, or void, the remainder of this Agreement shall remain in full force and effect.

7.8 Governing Law. This Agreement is entered into and is to be performed in Riverside County, California and shall be governed by and construed in accordance with the controlling laws of the State of California or federal law, whichever is applicable, and the Parties agree that venue shall be in Riverside County, California.

7.9 Interpretation. This Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against any party. By way of example and not in limitation, this Agreement shall not be construed in favor of the party receiving a benefit or against the party responsible for any particular language in this Agreement. Captions are used for reference purposes only and should be ignored in the interpretation of the Agreement.

7.10 Statutory Obligations
a. Abuse of Office or Position. Pursuant to California Government Code Sections 53243, 53243.1 and 53243.2, which became effective on January 1, 2012, if EMPLOYEE is convicted of a crime involving an abuse of EMPLOYEE'S office or position, all of the following shall apply: (1) if EMPLOYEE is provided with an administrative leave pay pending an investigation, EMPLOYEE shall be required to fully reimburse such amounts paid by CITY; (2) if CITY pays for the criminal legal defense of EMPLOYEE (which would be in its sole discretion, 9

as CITY is generally not obligated to pay for a criminal defense), EMPLOYEE shall be required to fully reimburse such amounts paid by CITY; and (3) if this Agreement is terminated, any cash settlement related to the termination of EMPLOYEE by CITY, said amount shall be fully reimbursed to CITY or shall be void if not yet paid to EMPLOYEE. For this Section, abuse of office or position means either: (1) an abuse of public authority, including waste, fraud, and violation of the law under the color of authority; or (2) a crime against public justice, including a crime described in Title 7 commencing with section 92 of the California Penal Code. b. Maximum Cash Settlement Upon Termination of Agreement. Pursuant to California Government Code Sections 53260 and 53261, regardless of the term of this Agreement, if the Agreement is terminated and a dispute arises regarding the termination, the maximum cash settlement that EMPLOYEE may receive shall be equal to the monthly salary of EMPLOYEE multiplied by eighteen and shall not include any other noncash items except health benefits, which may be continued for the same duration of time (18 months) or until employee finds other employment, whichever occurs first.

7.11 Incorporation of Recitals. The Parties repeat and incorporate the recitals set forth above as if fully set forth herein.

7.12 Acknowledgment. EMPLOYEE acknowledges that EMPLOYEE has had the opportunity to consult legal counsel in regard to this Agreement, that EMPLOYEE has read and understands this Agreement, that EMPLOYEE is fully aware of its legal effect, and that EMPLOYEE has entered into it freely and voluntarily and based on EMPLOYEE'S own judgment and not on any representations or promises other than those contained in this Agreement.
"CITY" "EMPLOYEE"
CITY OF BEAUMONT Kirk Pelser
By:

City Manager, Elizabeth Gibbs
ATTEST:

By:

City Clerk, Elaine Morgan
10

BEAUMONT

O R N I A -
Staff Report
TO: City Council
FROM: Elizabeth Gibbs, City Manager
DATE March 18, 2025
SUBJECT: Proposed Refunding of Outstanding Community Facilities District (CFD) Bonds
Description Seeking direction from City Council on establishing a minimum savings threshold and eliminating the escalating debt structure on certain CFD bonds.

Background and Analysis:

Over the years, City staff has been proactive in monitoring outstanding bonds for refunding candidates. Based on current market interest rates, there is an opportunity to refund outstanding bonds associated with several community facilities districts (CFDs) or improvement areas within such districts to generate savings for property owners.

The current level of net present value and per parcel savings varies by CFD and improvement area. Staff is seeking direction from the City Council on minimum savings thresholds that it would like to achieve on the refundings.

In addition, certain bonds have escalating debt structures. Staff and its financing team have evaluated the ability to remove the escalating debt service structures, thereby `leveling out' payments made by property owners over time. Staff is requesting that City Council provide direction on removing the escalating debt structures.

Discussion
Given the opportunity to strengthen the underlying credit of the refunding bonds and achieve economies of scale, the refunding contemplates an issuance through the Beaumont Public Improvement Authority ("PIA"). This structure is similar to the one utilized by the City in 2019, 2020, and 2021, when it refunded multiple series of outstanding bonds.

While the outstanding bonds are not currently rated, the refunding bonds may qualify for an investment grade rating and bond insurance, which would lead to a lower cost of borrowing (and potentially more savings to property owners). Furthermore, the refunding bonds may also qualify for a reserve surety policy, which would enable the

City to reduce the overall size of the refunding bonds, lower annual payments, and increase savings to property owners.

Staff will work with the financing team on all the necessary legal documents to return to the City Council and the Beaumont Public Improvement Authority for approval of the issuance of refunding bonds and all associated legal documents at a later date.

Fiscal Impact:

There is no cost to the City to provide direction on establishing a minimal savings threshold or eliminating the escalating debt structure on certain CFD bonds. If, and when, the refunding bonds price, property owners within the CFDs and improvement areas will see a reduction in their special taxes.

Recommended Action:

Provide direction to staff and the financing team on a savings threshold to consider in determining which CFD refundings to pursue and to bring back to City Council for ultimate approval to proceed.

Attachments:

A. Presentation

BEAUMONT
City of Beaumont
Proposed Refunding of Outstanding CFD Bonds
Direction on Establishing a Minimum Savings Threshold and Eliminating the Escalating Debt Structure on Certain Bonds March 18, 2025
M1FI Stradling S P I C E CONSULTING GROUP
Nor I'i1 1rn•ial5ululiun, Attorneys at Law

Summary
There is an opportunity to refinance outstanding bonds associated with several community facilities districts (CFDs) or improvement areas within such districts to generate savings for property owners
In total, 17 bond issues totaling $121 million of par value outstanding are eligible to be refinanced in 2025
Bond issues not callable in 2025 will be eligible to be refinanced in future years Given that savings vary by CFD, staff is seeking direction from City Council on minimum savings thresholds that it would like to achieve Minimum % net present value (NPV) savings and/or $ savings per parcel Staff is also seeking direction on whether to remove the escalating debt structure in certain CFDs or provide more immediate savings to property owners
CFD 93-1 Improvement Areas 17C (Tournament Hills) and 8D (Sundance)

CFD Debt Profile
In total, 31 bond issues currently outstanding totaling $244 million in par value ► Of these, 17 are eligible to be refinanced in 2025 (100% - 103% call premiums) CFD Debt Profile
uer' Issue District
Community Issue
Name at Issuance Date
Outstanding Final Final Earliest Date to Refinance S&P
Par Value2 Term Coupon @ Premium Ratin:3
BFA
BFA
BFA
BFA
2015A 93-1 IA -7A1
2015B 93-1 IA -19A
2015C 93-1 IA -18
2015D 93-1 IA -16
Four Seasons
Oak Valley
Stetson
Shadow Creek
Mar 15
Apr 15
Jun 15
Jun 15
$8,755,000 2045 5.00%
12,640,000 2035 5.00%
3,100,000 2034 4.13%
4,555,000 2034 4.25%
September 1, 2025 @ 100
September 1, 2025 @ 100
September 1, 2025 @ 100
September 1, 2025 @ 100
None
None
None
None
CFD4 2017 93-1 IA -19C
CFD4 2017 93-1 IA -6A1
Fairway Canyons Jul 17
Seneca Springs Jul 17
10,234,704 2036 3.83% September 1, 2027 @ 100 None
20,708,610 2035 3.81% September 1, 2027 @ 100 None
CFD4 2017 93-1 IA -8B
CFD4 2017 93-1 IA -14A
CFD4 2017 93-1 IA -14
Sundance
Oak Valley
Oak Valley
Jul 17 4,220,000 2037 3.94% September 1, 2025 @ 100
Jul 17 8,455,000 2033 3.52% September 1, 2025 @ 100
Jul 17 4,135,000 2032 3.45% September 1, 2025 @ 100
None
None
None
CFD4 2017 93-1 IA -14B
Oak Valley
Jul 17 2,847,371 2037 3.80% September 1, 2027 @ 100 None CFD4 2017 93-1 IA -8
Sundance
Jul 17 4,370,000 2032 3.47% September 1, 2025 @ 100 None CFD4 2017 93-1 IA -8D
CFD4 2017 93-1 IA -8A
CFD4 2017 93-1 IA -8C
Sundance
Sundance
Sundance
Jul 17
Jul 17
Jul 17
560,860 2039 3.82%
4,288,967 2035 3.78%
4,687,558 2038 3.89%
September 1, 2027 @ 100
September 1, 2027 @ 100
September 1, 2027 @ 100
None
None
None
CFD 2018 93-1 IA -17C
Tournament Hills Jun 18
8,390,000 2048 5.00% September 1, 2025 @ 103 None

1. Issuer: BFA: Beaumont Financing Authority; CFD: Community Facilities District; PIA: Public Improvement Authority

2. Outstanding: par amount outstanding as of September 2, 2024

3. Ratings: assigned underlying rating from Standard & Poor's (bond insurance rating)

4. Private placement Page 232 of 789

CFD Debt Profile (cont'd)
CFD Debt Profile
Issuer' Issue District
Community Issue Outstanding Final Final Earliest Date to Refinance S&P Name at Issuance Date Par Valuez Term Cou • on @ Premium Ratin:3 CFD
CFD
CFD
CFD
CFD
CFD
2018
2018
2018
2018
2018
2019
93-1 IA -8C
93-1 IA -8D
93-1 IA -7B
93-1 IA -7D
93-1 IA -8E
2016-1
Sundance
Sundance
Four Seasons
Four Seasons
Sundance
Fairway Canyon
Jun 18
Jun 18
Nov 18
Nov 18
Dec 18
Mar 19
$16,520,000 2048
7,495,000 2048
1,685,000 2039
3,250,000 2048
12,075,000 2048
7,940,000 2049

5.00%

5.00%

4.00%

4.13%

5.00%

5.00%
September 1, 2025 @ 103
September 1, 2025 @ 103
September 1, 2025 @ 103
September 1, 2025 @ 103
September 1, 2025 @ 103
September 1, 2025 @ 103
None
None
None
None
None
None
i
93-1 lAs 3, 9,
PIA 2019
10A, 11, 12A
Multiple
Aug 19
3,695,000 2032 4.00% September 1, 2029 @ 100 A (AA)
CFD 2019 2016-2
CFD 2019 2016-4
Sundance
Four Seasons
Aug 19
Nov 19
9,335,000 2049 5.00%
3,760,000 2049 5.00%
September 1, 2025 @ 102 None
September 1, 2025 @ 103 None
CFD
PIA
CFD
2020
2020
2020
PIA 2021
CFD
CFD
CFD
2023
2024
2024
93-1 IA -8F
93-1 lAs 17, 8C
2019-1
93-1 lAs 7B, 7C,
17A, 19C, 20
2016-3
2021-1
93-1 IA -17D
Sundance
Multiple
Sundance
Multiple
Sundance
June 20
Aug 20
Sept 20
12,450,000 2050
15,125,000 2042
2,165,000 2050
June 21 14,610,000 2039
May 23
Fairway Canyon Jan 24
Tournament Hills Oct 24
8,665,000 2053
14,240,000 2054
9,400,000 2054

4.00%

3.04%

3.25%
September 1, 2026 @ 103
September 1, 2030 @ 100
September 1, 2026 @ 103
None

A- (AA)
None

2.98% September 1, 2030 @ 100 A (AA)

5.00% September 1, 2030 @ 103

5.00% September 1, 2030 @ 103

5.00% September 1, 2031 @ 103

1. Issuer: BFA: Beaumont Financing Authority; CFD: Community Facilities District; PIA: Public Improvement Authority

2.Outstanding: par amount outstanding as of September 2, 2024

3. Ratings: assigned underlying rating from Standard & Poor's (bond insurance rating) None
None
None

CFD Bonds Eligible to be Refinanced by Year
Par Value ($ in Millions) and Issues Callable by Year
$140
c
0 $120
$100
$80
$60
$40
$20
$-
$121 million
(17 issues)
$37 million
(6 issues)
$14 million
(2 issues)
$2 million
(1 issue)
$41 million
(4 issues)
$9 million
(1 issue)
2025 2026 2027 2029 2030 2031

Market Overview (Tax -Exempt Interest Rates)
Compared to the start of 2025, the 2 and 10 -year tax-exempt rates are lower while the 30 -year tax-exempt rate is higher

4.3%

4.0%

3.8%

3.5%

3.3%

3.0%

2.8%

2.5%

2.3%

2.0%
N
CD
2 -Year
10 -Year - —30-Year

N N N N
2 I I
Q co D
Q cn O

N N N
N Ni
z 0
L n
N Ni
12 ro a)
u_
Ln
N
CD
6 Source: Bloomberg as of March 10, 2025.

Council Guidance: Establish Savings Thresholds
► Council guidance to set threshold for NPV % savings and per parcel savings GFOA frequently mentions a 3% NPV % savings threshold to evaluate a refinancing; of the 14 CFD bond issues eligible to be refinanced, 11 currently fall below the 3% threshold Assuming rates decline by 0.10%, CFD 93-1 lAs 18 and 8B increase above 3% NPV savings Summar of Savin:s Anal sis
Year
Issuer Issued, District
BFA
BFA
BFA
BFA
CFD
CFD
CFD
CFD
CFD
CFD
CFD
CFD
CFD
CFD
CFD
CFD
2015
2015
2015
2015
2017
2017
2017
2017
2018
2018
2018
2018
2018
2018
2019
2019
CFD 2019
Community
Name at Issuance
Debt Par Value Call
omes Structure Refunded Premium
NPV
93-1 IA -7A1 Four Seasons 484 Level
93-1 IA -19A Oak Valley 546 Level
93-1 IA -18 Stetson 194 Level
93-1 IA -16 Shadow Creek 241 Level
93-1 IA -8B Sundance 192 Level
93-1 IA -14A Oak Valley 1,261 Level
93-1 IA -14 Oak Valley 1,908 Level
93-1 IA -8 Sundance 946 Level
93-1 IA -17C Tournament Hills 215 Escalating
93-1 IA -8C Sundance 686 Level
93-1 IA -8D Sundance 279 Escalating
93-1 IA -7B Four Seasons 232 Level
93-1 IA -7D Four Seasons 296 Level
93-1 IA -8E Sundance 374 Escalating
2016-1 Fairway Canyon 372 Level
2016-2 Sundance 527 Level �pD
2016-4 Four Seasons 346 L el 2 67of'�tiy
All number are preliminary and subject to change. Based on market conditions as of March 10, 2025. 100
100
100
100
100
100
100
100
103
103
103
103
103
103
103
102
103
$585,897 6.7%
791,702 6.3%
85,198 2.7%
141,416 3.1%
113,900 2.7%
60,305 0.7%
18,182 0.4%
19,145 0.4%
120,899 1.4%
214,200 1.3%
122,207 1.6%
(24,545) -1.5%
(173,229) -5.3%
(81,637) -0.7%
114,071 1.4%
171,751 1.8%
(171,201) -4.6%
$8,755,000
12,640,000
3,100,000
4,555,000
4,220,000
8,455,000
4,135,000
4,370,000
8,390,000
16,520,000
7,495,000
1,685,000
3,250,000
12,185,000
7,940,000
9,335,000
Total Annual Savings
Savings Savings /Parcel
$1,605,290
2,614,750
518,220
771,584
306,977
231,708
114,596
123,747
1,112, 743
2,238,898
1,028,197
169,635
(22,037)
1,174,659
830,174
1,016,604
17,840
$80,265
261,475
57,580
85,732
25,581
28,963
16,371
17,678
48,380
97,343
44,704
12,117
(958)
51,072 137
34,591 93
42,359 80
743 2
$166
479
297
356
133
23 9
19 225
142
160
52 Council Guidance: Remove Escalating Structure
City staff practice with all refinancing opportunities: evaluate the economics of removing an escalating debt structure, when possible Of the CFDs callable in 2025 that exhibit positive NPV savings, CFD 93-1 IA -17C and CFD 93-1 IA -8D have escalating debt structures
CFD 93-1 IA -17C: Current Annual Payments
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$-
0 rn
0 N lD 00 0 N lD 00
0 0 0 0 0 0 0 0 ▪ 0

N N N NJ N NJ N N N N
CFD 93-1 IA -8D: Current Annual Payments
(with Parity Debt)
$800,000
■ Bonds Eligible to be Refinanced
Parity Debt
$600,000 =!
$400,000
111111111
$200,000
$-
lD 00 0 N lD CO 0 N l/0 CO
N N m m Cr) m (n
0 0 0 0 0 0 0 0 0 ▪ 0 ▪ 0 ▪ 0

N NJ NJ NJ NJ NJ N N N N N N

8 Council Guidance: Remove Escalating Structure (17C)
Level Annual Savings
(MAINTAIN Escalator)
$225 in annual savings per
homeowner (2026-48)
Level Annual Payments
(REMOVE Escalator)
New payments are higher 2026-31
Savings start in 2032 and increase
over time
Per parcel dissavings of $259
(2026) to savings of $1,074 (2048)
► Interest rates would need to decline
by more than 1.4% for there to be
no years of dissavings
CFD 93-1 IA -17C: MAINTAIN Escalator
$1,000,000
mmi New Debt Savings — — Prior Debt
$800,000
$600,000
$400,000
$200,000
i
iiiiilillfl
OOP
(JD 00 0 N - LC) 00 0 N r lD 00
N N M M M M M Cr C
CI-
O 0 0 0 0 0 0 0 0 0 0 0

N N N N N N N N N N N N
CFD 93-1 IA -17C: REMOVE Escalator
$1,000,000
$800,000
$600,000
$400,000
$200,000

- New Debt
- Dissavings
Savings
— — Prior Debt
MIN
CO 0
M
0 0
N N
O 8 9 0 O

N N N N

Council Guidance: Remove Escalating Structure (8D)
Level Annual Savings
(MAINTAIN Escalator)
$160 in annual savings per
homeowner (2026-48)
Level Annual Payments
(REMOVE Escalator)
New payments are higher 2026-31
Savings start in 2032 and increase
over time
Per parcel dissavings of $204
(2026) to savings of $733 (2048)
Interest rates would need to decline
by more than 1.4% for there to be
no years of dissavings
CFD 93-1 IA -8D: MAINTAIN Escalator
$800,000
$600,000
$400,000
$200,000
$-
$800,000
$600,000
$400,000
$200,000
$
New Debt
— — Prior and Parity Debt
00 N
O
N
O N
M M
O O
N N
LO
M
O
N
O
N
M
0 N
00 m
O
N
Savings —
0 eV
•71-
O O
N N
CFD 93-1 IA -8D: REMOVE Escalator
CO
O
N

_
■�i=_®-=■■■■
O
N
LO
0 N
00 0
N
ago
som
400
ono
ago
woo
C New Debt
Parity Debt
Savings
Dissavings
— — Prior Debt and Parity Debt
fai
O N
en rn
O O
N N
•71-
M
O
Q0
m
O
CO
m
O
N
M al

O N QC)
O O d0 O

N N N N

BEAUMONT

O R N I A -
Staff Report
TO: City Council
FROM: Elizabeth Gibbs, City Manager
DATE March 18, 2025
SUBJECT: Approval of an Amendment to the Acquisition Agreement for Community Facilities District No. 2016-3 and Authorizing the Issuance of its Special Tax Bonds, Series 2025
Description Approve amendment to the Acquisition Agreement for Community Facilities District No. 2016-3 and authorize the issuance of Special Tax Bonds.

Background and Analysis:

The City formed Community Facilities District ("CFD" or "District") 2016-3 on February 7, 2017. Subsequent to a noticed public hearing on February 7, 2017, the City Council adopted resolutions which established the District, authorized the levy of a special tax within the District, determined the necessity to incur bonded indebtedness within the District, and called an election within the District on the proposition of incurring bonded indebtedness, levying a special tax and setting an appropriations limit within the District.

On February 7, 2017, an election was held within the District at which the landowners eligible to vote approved the issuance of bonds for the District in an amount not to exceed $22,000,000 and approved a rate and method of apportionment of special tax for the District.

The District previously issued its $8,800,000 2023 Special Tax Bonds, (the "2023 Bonds") to finance certain public facilities which the District was authorized to finance.

The proposed 2025 Special Tax Bonds (the "2025 Bonds") will be issued to finance the costs of additional public improvements benefitting the District. The 2025 Bonds will be payable from the Special Taxes of the District on a parity with the 2023 Bonds.

The District is located in the northeastern part of the City and is bounded by Starlight Avenue to the west, North Highland Springs Avenue to the east and Cougar Way to the north. Tri Pointe Homes IE-SD, Inc., a California corporation ("Tri Pointe"), is developing the land within the District into a residential development of 704 age - restricted (55+) single family detached homes known as "Altis Beaumont." Formation of

the CFD and issuance of the 2025 Bonds was included as part of the Settlement Agreement between Pardee Homes (predecessor to TriPointe Homes) and the City.

As of January 17, 2025, the date of value of the Appraisal Report, of the 704 units planned within the District, 556 had been completed and conveyed to individual homeowners. As of such date, TriPointe owned 11 completed homes which are model homes, 40 units in various stages of construction, and 97 finished lots. TriPointe expects to complete and convey all remaining homes to be constructed in the District to individual homeowners by the second quarter of 2026.

The aggregate value of the property within the District subject to the Special Tax levy is $277,259,091. Based on the estimated principal amount of the 2025 Bonds ($6,580,000) and including direct and overlapping debt, including the outstanding 2023 Bonds, the value -to -lien ratio for the District is approximately 14.50 to 1.

Discussion
Based on market conditions as of February 24, 2025, the 2025 Bonds are expected to be issued in a par amount of approximately $6.58 million with a final maturity of September 1, 2055. The resolution includes a not to exceed par amount of $7.5 million to allow for potential changes in market conditions before the bonds are priced and sold.

Net proceeds from the 2025 Bonds will be used to finance certain public improvements constructed by TriPointe or to finance certain development impact fees pursuant to the Settlement Agreement. A description of such facilities is contained in Exhibit A to the Acquisition Agreement, as amended (as discussed below). After the issuance of the 2025 Bonds, future parity bonds may be issued for refunding purposes only.

The attached CFD resolution approves an amendment to the Acquisition Agreement, the issuance of the 2025 Bonds and forms of a First Supplement to the Bond Indenture, Bond Purchase Agreement, Continuing Disclosure Certificate and Preliminary Official Statement. The Preliminary Official Statement contains the SEC mandated disclosure related to the Cease and Desist Order and the Beaumont Financing Authority's compliance history with its continuing disclosure undertakings. As part of its obligations under federal securities laws, City Council should review the Preliminary Official Statement. The attached City Resolution also approves an amendment to the Acquisition Agreement, which amends the list of improvements eligible to be financed with proceeds of the 2025 Bonds set forth in Exhibit A thereto. The Preliminary Official Statement also includes a disclosure certificate, which is located in the appendix, providing additional relevant information for reference.

Assuming the City Council approves the resolution this evening, the 2025 Bonds are expected to price the last week of March 2025 and close roughly two weeks later.

Provided in the table below are estimated financing statistics relating to the 2025 Bonds,

as well as the projected special tax levy on homes within the District. As required under Section 5852.1 of the California Government Code, good faith estimates have been provided to the City by Urban Futures, Inc., the Municipal Advisor in consultation with Stifel, Nicolaus & Company, Incorporated, as underwriter of the 2025 Bonds as Attachment A.

Select Financing and Levy Statistics
Par Amount
True Interest Cost
Average Annual Debt (Principal and Interest) Payments
Total Debt (Principal and Interest) Payments
Fiscal Year 2025-26 Special Tax Levy Rate Per Parcel
Based on market conditions as of February 24, 2025
$6,580,000

4.97%
$444,498
$13,510,272
$1,366 -
$2,058
Fiscal Impact:

The 2025 Bonds are paid from special taxes levied in the District. There is no fiscal impact to the City's General Fund. The City will, however, be required to provide administration for the District, which will be funded as part of the annual special tax levy.

The property owners are expected to pay special taxes of approximately $1,366 to $2,058 in Fiscal Year 2025-26, depending on the size of the home. Such taxes will not increase over time.

The estimated cost to prepare this report is $310.

Recommended Action:

1. Waive the full reading and adopt by title only, "A Resolution of the City Council of the City of Beaumont, acting as the legislative body of the City of Beaumont Community Facilities District No. 2016-3, authorizing the issuance of its Special Tax Bonds, Series 2025 in a principal amount not to exceed $7,500,000 and approving certain documents and taking certain other actions in connection therewith".

2. Adopt a resolution of the City Council of the City of Beaumont approving First Amendment to Acquisition Agreement.

Attachments:

A. Good Faith Estimates

B. CFD Resolution
C. City Resolution
D. First Supplement to Bond Indenture
E. Bond Purchase Agreement
F. Preliminary Official Statement
G. First Amendment to Acquisition Agreement
H. 2025 Special Tax Bonds Presentation

ATTACHMENT A

GOOD FAITH ESTIMATES
The good faith estimates set forth herein are provided with respect to the 2025 Bonds in accordance with California Government Code Section 5852.1. Such good faith estimates have been provided to the District by Urban Futures, Inc., the District's Municipal Advisor, in consultation with the Underwriter, Stifel Nicolaus.

Principal Amount. The Municipal Advisor has informed the District that, based on the District's financing plan and current market conditions, its good faith estimate of the aggregate principal amount of the 2025 Bonds to be sold is $6,580,000 ("Estimated Principal Amount").

True Interest Cost of the Bonds. The Municipal Advisor has informed the District that, assuming that the respective Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the true interest cost of the 2025 Bonds, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the 2025 Bonds, is 4.97%.

Finance Charge of the Bonds. The Municipal Advisor has informed the District that, assuming that the Estimated Principal Amount of the 2025 Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the finance charge for the 2025 Bonds, which means the sum of all fees and charges paid to third parties (or costs associated with the 2025 Bonds), is $297,055.

Additionally, there will be an annual Trustee fee of roughly $2,000 for as long as the 2025 Bonds are outstanding.

Amount of Proceeds to be Received. The Municipal Advisor has informed the District that, assuming the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the amount of proceeds expected to be received by the District for sale of the 2025 Bonds, less the finance charge of the 2025 Bonds, as estimated above, and any reserves or capitalized interest paid or funded with proceeds of the 2025 Bonds, is $5,850,843.

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Total Payment Amount. The Municipal Advisor has informed the District that, assuming that the Estimated Principal Amount of the 2025 Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the total payment amount, which means the sum total of all payments the District will make to pay debt service on the 2025 Bonds, plus the finance charge for the 2025 Bonds, as described above, not paid with the respective proceeds of the 2025 Bonds, calculated to the final maturity of the 2025 Bonds, is $13,510,272. Additionally, there will be an annual Trustee fee of $2,000 for as long as the 2025 Bonds are outstanding.

The foregoing estimates constitute good faith estimates only and are based on market conditions prevailing at the time of preparation of such estimates. The actual principal amount of the 2025 Bonds issued and sold, the true interest cost thereof, the finance charges thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates due to: (a) the actual date of the sale of the 2025 Bonds being different than the date assumed for purposes of such estimates, (b) the actual principal amount of 2025 Bonds sold being different from the respective Estimated Principal Amounts, (c) the actual amortization of the 2025 Bonds being different than the amortization assumed for purposes of such estimates, (d) the actual market interest rates at the time of sale of the 2025 Bonds being different than those estimated for purposes of such estimates, (e) other market conditions, or (f) alterations in the District's financing plan, or a combination of such factors. The actual date of sale of the 2025 Bonds and the actual principal amount of 2025 Bonds sold will be determined by the District based on various factors. The actual interest rates borne by the 2025 Bonds will depend on market interest rates at the time of sale thereof. The actual amortization of the 2025 Bonds will also depend, in part, on market interest rates at the time of sale thereof. Market interest rates are affected by economic and other factors beyond the control of the District.

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Integra Realty Resources
Los Angeles
Appraisal of Real Property
Altis Beaumont
Residential Subdivision
Discovery Way
Beaumont, Riverside County, California 92223
Prepared For:

City of Beaumont
Date of the Report:

February 28, 2025
Report Format:

Appraisal Report
IRR - Los Angeles
File Number: 219-2025-0002
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Subject Photographs
Altis Beaumont
Discovery Way
Beaumont, California

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Integra Realty Resources
Los Angeles
February 28, 2025
Ms. Elizabeth Gibbs
City Manager
City of Beaumont
550 E. 6th St.

Beaumont, CA 92223
12100 Wilshire Boulevard
Suite 800
Los Angeles, CA 90025
T 213.984.4425
F 916.435.4774
www.irr.com
SUBJECT: Market Value Appraisal
Altis Beaumont
Discovery Way
Beaumont, Riverside County, California 92223
IRR - Los Angeles File No. 219-2025-0002
Dear Ms. Gibbs:

Integra Realty Resources — Los Angeles is pleased to submit the accompanying appraisal of the referenced property. The purpose of the appraisal is to develop an opinion of the market value, by ownership pertaining to the fee simple interest in the property, as well as the aggregate, or cumulative, value of the appraised properties. The client for the assignment is the City of Beaumont and the intended use of the report is for bond underwriting purposes.

City of Beaumont CFD No. 2016-3 is comprised of residentially zoned land in the city of Beaumont, and is bounded by Starlight Avenue to the west, N. Highland Springs Avenue to the east, and Cougar Way to the north. Specifically, the territory within CFD No. 2016-3 includes 704 lots being marketed as Altis at Beaumont, a 55+ gated community with a community center ("The VuePoint"), offering several swimming pools, sports courts, billiards lounge, fitness club, as well as studios and outdoor event spaces. There are six product lines within Altis at Beaumont (4 of which have sold out) on lots ranging in size from 3,850 to 5,775 square feet, which feature floor plans ranging in size from 1,419 - 2,559 square feet.

Current pricing ranges from $420,000 to $526,000. Of the 704 Assessor's parcels within the boundaries of CFD No. 2016-3, 567 parcels are improved with a completed single-family home, of which 402 have transferred to individual homeowners, or represent model homes, and have a complete assessed value for both land and improvements and are not the

Ms. Elizabeth Gibbs
City of Beaumont
February 28, 2025

subject of this Appraisal. A more detailed legal and physical description of the subject property is contained within the attached report.

The appraisal conforms to the Uniform Standards of Professional Appraisal Practice (USPAP), the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute, and applicable state appraisal regulations. The Appraisal Report is also prepared in accordance with the Appraisal Standards for Land Secured Financing published by the California Debt and Investment Advisory Commission (CDIAC) (2004).

Standards Rule 2-2 (Content of a Real Property Appraisal Report) contained in the Uniform Standards of Professional Appraisal Practice (USPAP) requires each written real property appraisal report to be prepared as either an Appraisal Report or a Restricted Appraisal Report. This report is prepared as an Appraisal Report as defined by USPAP under Standards Rule 2-2(a), and incorporates practical explanation of the data, reasoning, and analysis that were used to develop the opinion of value.

Based on the valuation analysis in the accompanying Appraisal Report, and subject to the hypothetical condition, definitions, assumptions, and limiting conditions expressed in the report, the concluded opinions of value, as of the date of value, January 17, 2025, is as follows:

Value Conclusions
Value Premise
Lots/Units Aggregate Value
Aggregate Value of Appraised Properties
Individual Homeowners
Completed Homes
TriPointe Homes
Finished Lots
Homes Under Construction
Completed Homes
Total
154 $70,293,000
97 40
11 $13,694,000
$7,488,000
5 092 000
302 $96,567,000
Aggregate Value of Assessed Properties 402 $180,692,091 Total Aggregate Value of Appraised and Assessed Properties $277,259,091 Extraordinary Assumptions and Hypothetical Conditions
The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment -specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions.

None
The val ue conclusions are based on the fol lowi ng hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.

1. The value derived herein is based on the hypothetical condition that certain proceeds to be financed by the CFD No. 2016-3 Revenue Bonds, Series 2025, wi II be available to reimburse for certain public infrastructure already completed.

The use of any extraordinary assumption or hypothetical condition may have affected the assignment results. irr

Ms. Elizabeth Gibbs
City of Beaumont
February 28, 2025

The opinions of value represent a "not -less -than" value due to the fact we were requested to provide a market value for the smallest floor plan in each community improved with a completed home without a complete assessed improvement value reflected on the County of Riverside Assessor's Tax Roll.

Please note the aggregate of the appraised values is not the market value of the appraised properties in bulk. As defined by The Dictionary of Real Estate Appraisal, an aggregate value is the "total of multiple market value conclusions." For purposes of this Appraisal Report, market value is estimated by ownership.

As a condition of this assignment, the Assessed Values for certain Assessor's Parcels with completed and sold homes with a complete Assessed Value for both Land and Improvements is presented herein for illustration purposes only. As requested, these Assessor's Parcels are not appraised with a not -less -than market value; instead, the assigned County of Riverside Assessor's value will be relied upon for underwriting purposes.

If you have any questions or comments, please contact the undersigned. Thank you for the opportunity to be of service.

Respectfully submitted,
Integra Realty Resources - Los Angeles
Eric Segal, MAI
California Certified General Real Estate
Appraiser #AG026558
Telephone: 213.984.4425
Email: [email protected]
Kari Tatton
California Certified General Real Estate
Appraiser #3002218
Telephone: 916.435.3883, ext. 229
Email: [email protected]
Kevin Ziegenmeyer, MAI
California Certified General Real Estate
Appraiser #AG013567
Telephone: 916.435.3883, ext. 224
Email: [email protected]
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