Beaumont City Council
April 7, 2026

CITY OF BEAUMONT

DOWNTOWN BUSINESS INCENTIVE

LOAN POLICY
XXIII. FINANCIAL INFORMATION REQUIRED
It will be the policy of the City to require financial statements from each applicant in the form of a balance sheet and income statement for any and all fiscal year -ends since inception of the business (up to 3 years), and within the past 90 days of application date.

Current personal financial statements for each business owner and guarantor and personal and business federal tax returns for the prior three years are required, including all supporting schedules and statements. The City will obtain the written permission of the applicant to verify any and all tax returns with the Internal Revenue Service for accuracy (IRS Form 4506). Month -to -month projections covering any interim period until year-end, plus one full fiscal year is required, including the assumptions that the projections were based upon. Additional information will be requested at the discretion of the Program Administrator with direction from the staff and/or City Council:

All borrowers will be required as a covenant in the Loan Agreement to provide ongoing financial information as follows:

A. Fiscal Year End balance sheet and income statement within 90 days of each year end;
B. More frequent statements such as Accounts Receivable Agings, work in progress reports, or any other documents requested by the City to assist the borrower in the monitoring of the credit.

C. Payroll reports showing employee status, on a quarterly basis.

XXIV. FINANCIAL INQUIRIES
The City will not provide responses to inquiries regarding credit status of program participants. Participants are advised that under the Public Records Act, the loan documents and related documents are subject to public disclosure and scrutiny. However, the City may, if appropriate, keep confidential certain information provided by applicants to the City to the extent permitted by law as determined by City in its sole discretion. The City shall have no obligation to incur legal fees to establish that information is not subject to the Public Records Act.

XXV. INSURANCE
All collateral taken as security for any credit must be insured appropriately as determined by the City; evidence of that coverage must be provided showing the City as "Additional Insured," "Loss Payee," or "Mortgagee," whichever is appropriate for the collateral insured. The lapse of any insurance will create a default on the Loan Agreement and must be remedied immediately by the borrower. If necessary, the City will obtain appropriate insurance to protect its collateral and debit the premium to the borrower. 11

CITY OF BEAUMONT

DOWNTOWN BUSINESS INCENTIVE

LOAN POLICY
Additionally, in the case where real estate collateral is taken, a lender's Policy of Title Insurance will be required.

XXVI. AMENDMENTS
Amendments to these guidelines may be made from time to time by the City Council. Authority shall be granted to the City Manager or his/her designee to grant non - substantive minor waivers or non -substantive minor amendments to these guidelines, with the exception of state, federal or local laws, guidelines and regulations. 12

Exhibit C: Promissory Note

PROMISSORY NOTE
S50,000 March 17th, 2026 Beaumont, CA
For value received, Al (AA FAA), f6hriL ("Maker") promises to pay to the City of Beaumont, a general law city, or order the principal sum of Fifty Thousand Dollars and Zero Cents ($50,000.00) plus simple interest at the rate of average rate earned by the City's investment in the California Local Investment Fund (LAIF) per annum in equal quarterly installment over one year.

The borrower shall have the right to prepay the principal of this Note in whole or in part prior to its due date without premium or penalty.

Maker agrees that if any installment payment provided for in this Note is ten (10) days late, it would be impractical or extremely difficult to fix the actual damages resulting to the Payee. Therefore, Maker agrees to pay to the Payee an amount equal to ten percent (10%) of the late payment on default, as liquidated damages, and not as a penalty, to compensate the Payee for the expenses of administering the default. Only one late charge will be collected on any installment, regardless of the period during which it remains in default.

If this Note is placed in an attorney's hands for collection or collected by a lawsuit or through bankruptcy or probate, or any other Court, either before or after maturity, the holder of this Note shall recover reasonable attorney's fees, costs and other expenses incurred by the holder in enforcing the terms of this Note.

Failure to pay any part of the principal or interest of this Note when due shall authorize the holder of this Note to declare immediately due and payable the then -unpaid principal and exercise any and all of the rights and remedies either at law or in equity possessed by the holder of this Note.

The maker, signer and endorsers of this Note jointly and separately waive presentment, notice of dishonor and protest.

By: f
Name:

Title:
dyt OL 1 0f 1 1
}

Exhibit D: Guaranty of Note

PAYMENT GUARANTY
THIS PAYMENT GUARANTY (this "Guaranty") is made as of March 17`h, 2026 (the "Effective Date" )Tb9 City of Beaumont ;collectively, "Guarantors"), in favor of The City of Beaumont, a general law city ("Lender").

RECITALS
A. Guarantors are executing this Guaranty to induce Lender to make a loan (the "Loan") to c 4) Lv Lea. ("Borrower"), in the amount of Fifty Thousand Dollars and Zero Cents (S50,000.00). The Loan forgivable and is being made pursuant to that certain Business Assistance Program dated March 17`h, 2026 (the "Program").

B. The Loan is evidenced by a Secured Promissory Notc (the "Note") made payable to Lender in the principal amount of the Loan.

GUARANTY
I. Guaranty of Loan. Guarantors, jointly and severally, unconditionally guaranty to Lender the full payment of the Loan, and unconditionally agree to pay Lender the full amount of the Loan. If Borrower defaults in the payment when due of all or any part of the Loan, Guarantors shall in lawful money of the United States pay to Lender or order, on demand, all sums due and owing on the Loan, including all interest, charges, fees and other sums, costs and expenses.

2. Guaranty to be Absolute. Guarantors expressly agree that until the Loan is paid and performed in full and each and every term, covenant and condition of this Guaranty is fully performed, Guarantors shall not be released by or because of:
(a) Any act or event which might otherwise discharge, reduce, limit or modify Guarantors' obligations under this Guaranty.
(b) Any waiver, extension, modification, forbearance, delay or other act or omission of Lender, or its failure to proceed promptly or otherwise as against Borrower, Guarantors or any security. (c) Any action, omission or circumstance which might increase the likelihood that Guarantors may be called upon to perform under this Guaranty, or which might affect the rights or remedies of Guarantors as against Borrower; or
(d) Any dealings occurring at any time between Borrower and Lender, whether relating to the Loan or otherwise

3. Guarantors' Waivers. Guarantors waive:
(a) Any right Guarantors may have to require Lender to proceed against Borrower, proceed against or exhaust any security held from Borrower, or pursue any other remedy in Lender's power to pursue.
(b) Any defense based on any claim that Guarantor's obligations exceed or are more burdensome than those of Borrower.
(c) Any defense based on: (i) any legal disability of Borrower, (ii) any release, discharge, modification, impairment or limitation of the liability of Borrower to Lender from any cause, whether consented to by Lender or arising by operation of law or from any bankruptcy or other voluntary or involuntary proceeding, in or out of court, for the adjustment of debtor -creditor relationships ("Insolvency Proceeding") and (iii) any rejection or disaffirmance of the Loan or any part of it, or any security held for them, in any such Insolvency Proceeding; (d) Any defense based on or arising out of any action of Lender described in Section 2 above.

4. Waivers of Subrogation and Other Rights and Defenses. 622 of 115

(a) Upon a default by Borrower, Lender in its sole discretion, without prior notice to or consent of Guarantors, may elect to: (i) foreclose either judicially or nonjudicially against any real or personal property security it may hold for the Loan, (ii) accept a transfer of any such security in lieu of foreclosure, (iii) compromise or adjust the Loan or any part of it or make any other accommodation with Borrower or Guarantors, or (iv) exercise any other remedy against Borrower or any security. No such action by Lender shall release or limit the liability of Guarantors, who shall each remain jointly and severally liable under this Guaranty after the action, even if the effect of the action is to deprive Guarantors of any subrogation rights, rights of indemnity, or other rights to collect reimbursement from Borrower for any sums paid to Lender, whether contractual or arising by operation of law or otherwise.
(b) Guarantors waive any rights and defenses that are or may become available to Guarantors by reason of Sections 2787 to 2855, inclusive, of the California Civil Code (or any comparable statutes of another jurisdiction).

5. Subordination. Any rights of Guarantors, whether now existing or later arising, to receive payment on account of any indebtedness (including interest) owed to them by Borrower or any subsequent owner of the Property, or to withdraw capital invested by them in Borrower, or to receive distributions from Borrower, shall at all times be subordinate as to lien and time of payment and in all other respects to the full and prior repayment to Lender of the Loan.

6. Events of Default. Lender may declare Guarantors to be in default under this Guaranty upon the occurrence of any of the following events ("Events of Default"):
(a) Guarantors fail to perform any of their obligations under this Guaranty. (b) Either or both Guarantors become insolvent or the subject of any Insolvency Proceeding. (c) Either or both Guarantors die; or
(d) A material adverse change occurs, or is reasonably likely to occur, in either or both Guarantors' business conditions (financial or otherwise), operations, properties or prospects, or ability to pay or perform under this Guaranty.

7. No Release. Guarantors shall not be released from their obligations under this Guaranty except by a writing signed by Lender.

8. Heirs, Successors and Assigns; Participations. The terms of this Guaranty shall bind and benefit the heirs, legal representatives, successors and assigns of Lender and Guarantors

9. Notices. All notices, requests, demands or other communications to the respective parties hereto (unless otherwise expressly stipulated in this Guaranty) shall be deemed to have been duly given or made if addressed as provided on the signature page hereof or to such other address or such other person as the parties may from time to time hereafter specify to the others in writing delivered in the manner provided herein.

10. Governing Law. This Guaranty shall be governed by, and construed in accordance with, the laws of the State of California.

11. Costs and Expenses. If any lawsuit, reference or arbitration is commenced which arises out of, or which relates to this Guaranty or the Loan, the prevailing party shall be entitled to recover from each other party such sums as the court, referee or arbitrator may adjudge to be reasonable attorneys' fees (including allocated costs for services of in-house counsel) in the action or proceeding, in addition to costs and expenses otherwise allowed by law.

12. Consideration. Each Guarantor acknowledges that he or it expects to benefit from Lender's extension of the Loan to Borrower because of his or its relationship to Borrower, and that he or it is executing this Guaranty in consideration of that anticipated benefit.

13. Entire Agreement; Amendment. This Guaranty constitutes the entire agreement among the Parties and supersedes any prior understandings, agreements, or representations by or among the parties, written or oral, to the extent they relate in any way to the subject matter hereof. No

amendment of any provision of this Guaranty shall be valid unless the same shall be in writing and signed by the parties.

14. Miscellaneous. The death or legal incapacity of any Guarantor shall not terminate the obligations of such Guarantor or any other Guarantor under this Guaranty, including his or its obligations with regard to future advances (if any) under the Loan. The liability of all persons who are in any manner obligated under this Guaranty shall be joint and several. The illegality or unenforceability of one or more provisions of this Guaranty shall not affect any other provision.

Any Guarantor who is married agrees that Lender may look to all of his or her community property and separate property to satisfy his or her obligations under this Guaranty. This Guaranty may be executed in counterparts, and all counterparts shall constitute but one and the same document. Time is of the essence in the performance of this Guaranty by Guarantors.

IN WITNESS WHEREOF, the parties hereto have executed this Guaranty as of the date first written above.

By: f\ 1 `•1
name: , t ei tfr,ri {A_
Title: C c
Address for Notices:
i01; Pglnn Piqc (4.0 '►10-
Address for Notices:

Address for Notices:

Lender' Addrm for Noticr.:

BEAUMONT
-C A L I F O R N A -
Staff Report
TO: Honorable Mayor and Members of the City Council
FROM: Kari Mendoza, Interim Deputy City Manager
BY: Darron Usher, Principal Management Analyst
DATE: April 7, 2026
SUBJECT: Establishing a Minimum Savings Threshold and Eliminating the Escalating Debt Structure on Certain CFD Bonds
Description: Staff is 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 are outstanding bonds associated with several community facilities districts (CFDs) or improvement areas within such districts that are estimated to generate savings for property owners.

See Attachment A for a summary of the estimated savings of the CFD bonds that are eligible to be refinanced this year.

The current level of net present value and annual 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 a potential refunding. For reference, on a refunding last year, the City Council established minimum thresholds of 3.0% net present value savings or $200 in average annual savings per parcel.

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

Given the opportunity to strengthen the underlying credit of the refunding bonds and achieve economies of scale, the estimated savings in Attachment A assume that the outstanding callable CFD bonds are issued through the Beaumont Public Improvement Authority ("PIA"). This structure is similar to the one utilized by the City in 2019, 2020, 2021, and 2025, 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 continue to monitor the market and savings of the outstanding CFD bonds that are eligible to be refinanced. Assuming they meet the minimum savings thresholds established by the City Council, 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:

The cost of preparing this staff report is $500.

There is no cost to the City to provide direction on establishing a minimum savings threshold or eliminating the escalating debt structure on certain CFD bonds. If refunding bonds are issued, property owners within the CFDs and improvement areas are expected to benefit from reduced special taxes.

Recommended Action:

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

Attachments:

A. Estimated Savings of Outstanding CFD Bonds Eligible to be Refinanced in 2026

Appendix A
Savings Analysis of Outstanding City of Beaumont CFD Bonds Callable in 2026 Savings Summary of CFD Bonds Callable in 2026
CFD
93-1-8 (Sundance)
93-1-14A (Oak Valley)
93-1-14 (Oak Valley)
93-1-17C (Tournament Hills)
93-1-8D (Sundance)
93-1-7B (Four Seasons)
93-1-8E (Sundance)
2016-1 (Fairway Canyon)
2016-2 (Sundance)
Totals/Average
Issue Final
Year Maturity
2017 2032
2017 2033
2017 2032
2018 2048
2018 2048
2018 2039
2018 2048
2019 2049
2019 2049
Par Value
Callable
$3,885,000
7,655,000
3,660,000
8,290,000
7,425,000
1,580,000
11,935,000
7,755,000
9,115,000
$61,300,000
Call
Premium
100%
100%
100%
102%
102%
102%
102%
102%
101%
Parcels
946
1,908
1,941
216
279
283
374
372
527
Debt
Structure
Level
Level
Level
Escalating
Escalating
Level
Escalating
Level
Level
NPV $
Savings
$8,681
36,785
8,200
96,447
100,381
-19,871
-7,745
76,994
135.412
6,844 $2,237,533
NPV %
Savings

0.22%

0.48%

0.22%

1.16%

1.35%

1.26%
-0.06%

0.99%

1.49%
Average
Total Annual
Savings Savings
$196,646 $28,092
378,290 47,286
184,448 26,350
1,293,156 56,224
1,194,644 51,941
209,256 14,947
1,632,019 70,957
968,075 40,336
1,208,800 50,367
$7,265,334 $42,944
Annual
Savings
Per Parcel
$30
25 14
260
186
53 190
108
96 The blue highlighted cells above exceed City Council previously established savings thresholds of 3% NPV savings or $200 of savings per parcel.

The A ill:4, highlighted cells above do not meet City Council's previously established savings thresholds.

Refinancing Assumptions:

1. All numbers are preliminary and subject to change.

2. Given the credit characteristics of the pooled credit and the rating achieved on the City's last pooled CFD refunding, an 'A+' underlying rating is assumed, but not guaranteed.

3. Interest rates reflect market conditions as of March 30, 2026, and similar credits.

4. Cost of issuance and underwriter's discount used in the analysis are estimates for discussion purposes.

5. The analysis has been performed without a change to the term of the existing issues.

6. Given the assumed 'A+' underlying rating, the refunding bonds are expected, but not guaranteed, to qualify for insurance and a surety reserve (satisfying 100% of the requirement). Most of the outstanding bonds were originally structured with cash funded debt service reserve funds.

7. The escrow has been sized assuming investment in SLGS, but in no way does Stifel recommend any particular investment strategy.

8. Actual results may differ, and Stifel makes no commitment to underwrite at these levels.

9. The numbers of parcels are provided in the most recent continuing disclosure reports on EMMA.

BEAUMONT
-C A L I F O R N A -
Staff Report
TO: Honorable Mayor and Members of the City Council
FROM: Kari Mendoza, Interim Deputy City Manager
BY: Darron Usher, Principal Management Analyst
DATE: April 7, 2026
SUBJECT: Resolution of Intention for Annexation No. 1, Baldwin Ranch, into Community Facilities District No. 2025-M (Maintenance Services) Description: The proposed action initiates the annexation of Tax Zone 1 into Community Facilities District No. 2025-M ("CFD No. 2025-M"). CFD No. 2025-M allows for the levy of special taxes on parcels of taxable property for the purpose of providing the ongoing maintenance of public improvements. Adoption of the Resolution of Intention declares the City's intent to annex Tax Zone 1 into CFD No. 2025-M, authorize the levy of special taxes therein, and schedules a public hearing for June 2, 2026, to consider final annexation of the Tax Zone and related proceedings.

Background and Analysis:

On December 16, 2025, the City Council adopted Resolution No. 2025-76, establishing CFD No. 2025-M pursuant to the provision of the Mello -Roos Community Facilities Act of 1982 ("Act"). CFD No. 2025-M allows for the levy of special taxes on parcels of taxable property for the purpose of providing certain services which are necessary to meet increased demands placed by development upon the City.

Penn St. Development, LLC, ("Owner") owns Tentative Tract Map ("TTM") 38879, which consists of approximately two acres of a residential vacant lot. The property is located on the northwest corner of Pennsylvania Avenue and Eleventh Street, as shown in the attached Project Location map. The Owner has requested that the City assist them in annexing TTM 38879 into CFD No. 2025-M to cover the costs associated with the maintenance of public improvements. The area proposed for the annexation would be designated as "Annexation No. 1," and at build -out would include ten (10) single-family residential lots. Per the Owner's request, the City would establish a rate and method of apportionment and authorize the levy of special taxes on the taxable property within Annexation No. 1, to pay for those services.

The next step to annex TTM 38879 into CFD No. 2025-M is to publish a notification of the proposed annexation along with the Resolution of Intention and Boundary Maps of

the proposed Annexation area. A public hearing on the matter would take place on May 19, 2026, and at that time, the Council would formally consider approval of the Annexation No. 1.

Annexation No. 1 would have a maximum annual tax of $893 per unit and would be included in CFD No. 2025-M as "Tax Zone 1." This tax rate includes a Maximum Special Tax A of $577 per unit per year for maintenance services of public facilities and a Maximum Special Tax B (Contingent Tax B) of $316 per unit per year. The maximum annual tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. The attached CFD Maintenance Site Plan Exhibit illustrates which services would be maintained by the CFD.

The Owner has agreed to initiate and conduct the CFD annexation proceedings pursuant to the Act. To that end, the Owner has submitted a "Consent and Waiver" form on file in the City Clerk's Office which authorizes the City to (1) hold the election and declare election results, (2) shorten election time requirements, (3) waive analysis and arguments, and (4) waive all notice requirements relating to the conduct of the election immediately following the public hearing.

Fiscal Impact:

The individual property owners in the CFD would be responsible for annual payments of special taxes. It is estimated, upon full completion of the development, that there would be an annual collection of special tax revenue of approximately $5,770, not including Contingent Tax B, to be used to pay for maintenance costs, subject to aforementioned annual escalation.

On July 1 of each year, every taxable unit within the boundaries of the CFD would be subject to the special tax for the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year prior to project buildout exceed the available special tax revenue, the special tax may also be applied to the property within the recorded final subdivision maps as well as other undeveloped property within the boundaries of the CFD.

All costs associated with annexation into the CFD have been borne by the Owners. By annexing into the CFD, the costs of maintaining improvements located within the development would be financed through special taxes levied on the parcels within CFD No. 2025-M and not through the City's General Fund.

Recommended Action:

Accept the Petition of Penn St. Development, LLC, TTM 38879, located on the northwest corner of Pennsylvania Avenue and Eleventh Street, into CFD No. 2025-M (Maintenance Services), as Annexation No. 1; and
Adopt by title only, a "Resolution of the City Council of the City of Beaumont, California, Declaring its Intention to Annex Territory into Community Facilities District No. 2025-M (Maintenance Services) of the City of Beaumont, Adopting a Map of the Area Proposed to be Annexed (Annexation No. 1) and Authorizing the Levy of Special Taxes Therein." Attachments:

A. Project Location Map
B. Resolution of Intention
C. Exhibits A - G
D. Maintenance Exhibit

PROJECT MAP
COMMUNITY FACILITIES DISTRICT NO. 2025-M
(MAINTENANCE SERVICES)
ANNEXATION NO. 1

RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

BEAUMONT, CALIFORNIA, DECLARING ITS INTENTION

TO ANNEX TERRITORY INTO COMMUNITY FACILITIES
DISTRICT NO. 2025-M (MAINTENANCE SERVICES) OF THE

CITY OF BEAUMONT, ADOPTING A MAP OF THE AREA
PROPOSED TO BE ANNEXED (ANNEXATION NO. 1) AND

AUTHORIZING THE LEVY OF SPECIAL TAXES THEREIN
WHEREAS, On December 16, 2025, The City Council (the "City Council") of the City of Beaumont (the "City") adopted Resolution No. 2025-76 establishing Community Facilities District No. 2025-M (Maintenance Services) ("CFD No. 2025-M"), of the City of Beaumont, County of Riverside, State of California, for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City; and
WHEREAS, the City Council has received a written instrument to initiate and conduct proceedings pursuant to the Mello -Roos Community Facilities District Act of 1982 (the "Act"), to annex territory into CFD No. 2025-M and consenting to the shortening of election time requirements, waiving of analysis and arguments, and waiving of all notice and word limit requirements for the ballot relating to the conduct of the election; and
WHEREAS, the City Council has been advised that the landowner has requested that the area described and shown in Exhibit A be annexed into the boundaries of CFD No. 2025-M, that a rate and method of apportionment of the special tax to be levied therein be established.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY

OF BEAUMONT, ACTING EX OFFICIA AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-M (MAINTENANCE SERVICES) OF THE CITY OF BEAUMONT, DETERMINE AND ORDER AS FOLLOWS:

Section 1. Intent to Annex. The City Council, hereby declares that it proposes and intends to conduct proceedings pursuant to Article 3.5 of the Act for the annexation to CFD No. 2025-M of the territory described in Exhibit A attached hereto. The City Council determines that the public convenience and necessity require that such territory be annexed into CFD No. 2025-M.

Section 2. Name of the Community Facilities District. The name of the existing community facilities district is known as "Community Facilities District No. 2025-M (Maintenance Services)."
Section 3. Description of Territory Proposed to be Annexed, Annexation Map. The territory proposed to be annexed is included within the boundaries which property may annex to CFD No. 2025-M and is more particularly described and shown on that certain map entitled "Proposed Boundary Map Community Facilities District No. 2025-M (Maintenance Services) of the City of Beaumont, County of Riverside, State of California" as recorded on November 12, 2025 in Book 98 of Maps and Assessment and Community Facilities Districts, at Page 9, and as Document No. 2025- 0354753 in the official recorders of the County of Riverside. The territory proposed to be annexed to CFD No. 2025-M is described in Exhibit A attached hereto and by this reference made a part hereof.

Such territory is also shown and described on the map thereof entitled "Proposed Annexation Map No. 1, Community Facilities District No. 2025-M (Maintenance Services), City of Beaumont, County of Riverside, State of California," which is on file with the City Clerk (The "Annexation Map") and attached hereto as Exhibit D.

Section 4. Description of Authorized Services. The services proposed to be fmanced by CFD No. 2025-M (the "Maintenance Services") are described in Exhibit B attached hereto. The cost of providing the Services includes "Administrative Expenses," which include costs associated with the creation of CFD No. 2025-M, determination of the amount of special taxes, collection or payment of special taxes, collection or payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2025-M. The Services authorized to be financed by CFD No. 2025-M are in addition to those currently provided in the territory of CFD No. 2025-M and do not supplant services already available within that territory.

Section 5. Levy of Special Taxes. Except where funds are otherwise available, a special tax sufficient to pay the costs of the Services (including Administrative Expenses), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2025-M, will be levied annually within CFD No. 2025-M. The rate and method of apportionment, and manner of collection of the special tax are specific in Exhibit C.

Section 6. Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and Highways Code, the City Council adopts the Annexation Map attached hereto as Exhibit D as the map of the area proposed to be annexed to CFD 2025-M. Pursuant to Section 3111 of said Code, the City Clerk shall file the original of the Annexation map in her office and shall file a copy of the Annexation Map with the County Recorder of the County of Riverside no later than 15 days prior to the date of the hearing specified in Section 7 hereof.

Section 7. Public Hearing. The City Council will establish a time and place when and where the City Council would conduct a public hearing on the proposed annexation of the area depicted on the Annexation Map and described in Exhibit A hereto territory to the CFD No. 2025-M.

Section 8. Notice of Public Hearing. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing, in substantially the form attached hereto as Exhibit F, one time in a newspaper of general circulation published in the area of CFD No. 2025-M. The publication of said notice shall be completed at least seven days prior to the date herein fixed for said hearing. Said notice shall contain the information prescribed by Section 53339.4 of the Act.

Section 9. Mailing Ballots. In anticipation of its action at the public hearing, to call the election on the annexation for the same date, pursuant to waiver of election time limits from the landowners, the City Council hereby authorized the City Clerk to mail to each landowner in the territory proposed to be annexed to the CFD No. 2025-M a ballot, the full text of which shall be as set forth in Exhibit G hereto and shall be included in the ballot pamphlet mailed to each qualified elector.

A copy of the waiver and consent form signed by the property owner is attached hereto as Exhibit E and incorporated herein by this reference.

PASSED, APPROVED, AND ADOPTED this 7th day of April, 2026.

Jessica Voigt, Mayor of the City of Beaumont
(SEAL)
ATTEST:

Elaine Morgan, City Clerk
of the City of Beaumont

STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF BEAUMONT
) ss.

I, Elaine Morgan, City Clerk of the City of Beaumont, do hereby certify that the foregoing resolution was duly adopted by the City Council of said City, at a regular meeting of said City Council held on the 7th day of April, 2026, and that it was so adopted by the following vote:

AYES:

NOES:

ABSENT:

Elaine Morgan, City Clerk City of Beaumont

EXHIBIT A

DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
The City of Beaumont Community Facilities District No. 2025-M (Maintenance Services) (the "CFD No. 2025-M") Annexation No. 1 is currently comprised of one (1) parcel, located within the City boundaries.

The property is identified by the following Riverside County Assessor's Parcel Numbers (APNs).

Assessor Parcel Number(s)
Owner Name
415-200-031
Penn St. Development, LLC

EXHIBIT B

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-M (MAINTENANCE SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2025-M, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-way, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance and servicing of the water quality basin improvements within flood control channel improvements; and
(c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2025-M; as well as local roads within residential subdivisions located within CFD No. 2025-M; and any portions adjacent to the properties within CFD No. 2025-M; and In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay "Administrative Expenses," as said term is defined in the Rate and Method of Apportionment.

The above services may be financed by proceeds of the special tax of CFD No. 2025-M only to the extent that they are in addition to those provided in the territory of CFD No. 2025-M before CFD No. 2025-M was created or those provided in the territory annexed to CFD No. 2025-M before the territory was annexed, as applicable.

EXHIBIT C

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-M (MAINTENANCE SERVICES) A Special Tax (the "Special Tax") shall be levied on and collected from each Assessor's Parcel (defined below) in Community Facilities District No. 2025-M (Maintenance Services) (the "CFD No. 2025-M" or "CFD"; defined below), in each Fiscal Year on an Assessor's Parcel shall be determined by the City Council of the City of Beaumont, acting in its capacity as the legislative body of CFD No. 2025-M, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2025-M, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS
"Accessory Dwelling Unit" means a residential unit of limited size including smaller secondary unit(s) that shares an Assessor's Parcel with Single Family Residential Property that has a stand- alone Residential Unit.
"Acre" or "Acreage" means the land area of an Assessor's Parcel as shown on any Assessor's Parcel Map, or if the land area is not shown on the Assessor's Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.
"Administrative Expenses" means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2025-M including, but not limited to:
the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2025- M, or any designee thereof associated with fulfilling the CFD No. 2025-M disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025-M or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees, collection expenses, including payment of a proportional share of City overhead and salaries and benefits of any City employees whose duties are related to the administration of CFD No. 2025-M and third party expenses related to CFD No. 2025-M. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025-M for any other administrative purposes of CFD No. 2025-M, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
"Administrator" means the City Manager of the City of Beaumont, or his or her designee. "Approved Property" means all Assessor's Parcels of Taxable Property that are included in a Final Map that was recorded prior to the January 1 preceding the Fiscal Year in which the Special Tax is being levied, and that have not been issued a Building Permit on or prior to the May 1 preceding the Fiscal year in which the Special Tax is being levied.

"Assessor's Parcel" means a lot or parcel of land that is identifiable by an Assessor's Parcel Number by the County Assessor of the County of Riverside. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel Number.
"Assessor's Parcel Number" means that identification number assigned to a parcel by the County Assessor of the County.
"Building Permit" means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, "Building Permit" may or may not include expired or cancelled Building Permits, or any subsequent Building Permit document(s) authorizing new construction on an Assessor's Parcel that are issued or changed by the City after the first original issuance, as determined by the Administrator.
"Building Square Footage" or "BSF" means the floor area square footage reflected on the original construction Building Permit issued for construction of a building of Non -Residential Property and any Building Square Footage subsequently added to a building of such Non -Residential Property after issuance of a Building Permit for expansion or renovation of such building. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"CFD" or "CFD No. 2025-M" means the Community Facilities District No. 2025-M (Maintenance Services) of the City of Beaumont.
"CFD Boundary Map" means a recorded map of the CFD that indicates by a boundary line the extent of the territory identified to be subject to the levy of Special Taxes. "City" means the City of Beaumont, State of California. "Contingent Services" means services permitted under the Mello -Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2025-M as set forth in the documents adopted by the City Council at the time the CFD was formed to be provided by the City in the event the Administrator makes a determination pursuant to Section C(2) that a Property Owners' Association fails to adequately provide such services. "County" means the County of Riverside, State of California. "Developed Property" means all Assessor's Parcels of Taxable Property for which a Building Permit for new construction has been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.
"Exempt Property" means all Assessors' Parcels designated as being exempt from the Special Tax as provided for in Section G.

"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 6624 that creates individual lots for which Building Permits may be issued without further subdivision. "Fiscal Year" means the period from and including July 1St of any year to and including the following June 30th
"Land Use Category" or "LUC" means any of the categories contained in Section B hereof to which an Assessor's Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor's Parcel as of May 1 preceding the Fiscal Year in which the Special Tax is being levied.
"Maintenance Services" means the services permitted under the Act including, without limitation, street sweeping, traffic signal maintenance, the maintenance of landscaping and lighting of publicly owned parks, parkways, streets, roads and open spaces, graffiti abatement, flood and storm protection services, and the operation of storm drainage systems contained within the boundaries of CFD No. 2025-M and the City as set forth in Appendix B. "Maintenance Services (Contingent)" means the Maintenance Services described above and permitted under the Act, contained within CFD No. 2025-M and the City, which are proposed to be maintained and paid for through the Property Owner Association, and all to which the City has been granted an easement allowing such maintenance in any Fiscal Year following a Failure to Perform as defined in Section C.2. hereof.
"Maximum Special Tax" means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.
"Maximum Special Tax A" means for each Assessor's Parcel and each Fiscal Year, the maximum Special Tax A, as determined in accordance with Section C below that can be levied on such Assessor's Parcel in such Fiscal Year.
"Maximum Special Tax B (Contingent)" means for each Assessor's Parcel and each Fiscal Year, the maximum Special Tax B (Contingent), as determined in accordance with Section C below that can be levied on such Assessor's Parcel in such Fiscal Year. "Multi -Family Residential Property" or "MFR" means any Assessor's Parcel of Residential Property upon which a building or buildings comprised of attached Residential Units sharing at least one common wall with another unit are constructed or are intended to be constructed that share a single Assessor's Parcel Number, as determined by the Administrator. "Non -Residential Property" or "NR" means all Assessor's Parcels of Taxable Property for which a Building Permit(s) was issued for a non-residential use. The Administrator shall make the determination if an Assessor's Parcel is Non -Residential Property.

"Property Owner's Association" or "POA" means the property owner's association or homeowner's association established to maintain certain Services within a Tax Zone. "Proportionately" means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property.
"Rate and Method of Apportionment" or "RMA" means this Rate and Method of Apportionment of Special Taxes.
"Residential Property" means all Assessor's Parcels of Taxable Property upon which Residential Units have been constructed or are intended to be constructed or for which Building Permits have been or may be issued for purposes of constructing one or more Residential Units. "Residential Unit" or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. An Accessory Dwelling Unit that shares an Assessor's Parcel with an Assessor's Parcel classified as Single Family Residential Property shall not be considered a Residential Unit for purposes of levying the Special Tax pursuant to Section D.
"Service(s)" means services permitted under the Mello -Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2025-M as set forth in the documents adopted by the City Council at the time the CFD was formed. "Single Family Residential Property" or "SFR" means any Residential Property other than Multi - Family Residential Property on an Assessor's Parcel as determined by the Administrator. "Special Tax(es)" means the Special Tax A or Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property.
"Special Tax A" means the annual special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fund the Special Tax A Requirement. "Special Tax A Requirement" means for each Tax Zone that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of such Tax Zone within CFD No. 2025- M in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Maintenance Services, (ii) fund an operating reserve for the costs of Maintenance Services as determined by the Administrator, and (iii) Administrative Expenses. Under no circumstances shall the Special Tax A Requirement include funds for bonds or other forms of indebtedness.

"Special Tax B (Contingent)" means the annual special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fund the Special Tax B (Contingent) Requirement, if required.
"Special Tax B (Contingent) Requirement" means that amount required in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2025-M for Maintenance Services (Contingent) in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Maintenance Services (Contingent), (ii) amount necessary to fund an operating reserve for the costs of Maintenance Services (Contingent) as determined by the Administrator, and (iii) Administrative Expenses applicable to the Special Tax B (Contingent).

Under no circumstances shall the Special Tax B (Contingent) Requirement include funds for bonds or other forms of indebtedness. The Special Tax B (Contingent) Requirement, if initiated, will be applied to all Assessor's Parcels in addition to, and not in lieu of, the Special Tax A Requirement. "Taxable Property" means all Assessor's Parcels within CFD No. 2025-M, which are not Exempt Property.
"Taxable Unit" means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied following annexation of additional property to the CFD and pursuant to an amended Rate and Method of Apportionment of Special Tax. Appendix C identifies the Tax Zone Original included in CFD No. 2025-M at formation; additional Tax Zones may be created when property is annexed into the CFD.
"Tax Zone Original" means the specific geographic area identified on the CFD Boundary Map as Tax Zone Original included in Appendix C.
"Tract(s)" means an area of land: i) within a subdivision identified by a particular tract number on a Final Map, ii) identified within a Parcel Map; or iii) identified within lot line adjustment approved for subdivision.
"Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.

B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, all Assessor's Parcels of Taxable Property within CFD No. 2025-M shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sections C and D below. Assessor's Parcels of Developed Property and Approved Property shall be classified as either Residential Property or Non -Residential Property. Residential Property shall be further classified as Single Family Residential Property or Multi -Family Residential Property and the number of Residential Units shall be determined by the Administrator.

C. MAXIMUM SPECIAL TAX RATES
For purposes of determining the applicable Maximum Special Tax for Assessor's Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor's Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the Building Permit(s) issued or Final Map as determined by the Administrator. Once a single family attached or multi -family building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax A and Special Tax B (Contingent) levied against the Assessor's Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential Unit for the Tax Zone below or as included in Appendix A as future annexations occur.

To determine the Maximum Special Tax for Non -Residential Developed and Approved Properties, the Administrator assigns each Assessor's Parcel a Building Square Footage or Acreage based on the Final Map. The Special Tax A and Special Tax B (Contingent) for the next Fiscal Year is calculated by multiplying this figure by the Maximum Special Tax per Taxable Unit for the applicable Tax Zone, as identified below or in Appendix A for future annexations.

1. Special Tax A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor's Parcel of Developed Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025-M, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax A for Developed Property for Fiscal Year 2025-26 within Tax Zone Original is identified in Table 1 below:

TABLE 1

MAXIMUM SPECIAL TAX A RATES

DEVELOPED PROPERTY
Tax
Zone
Tract
Land Use Category
Taxable
Unit
Maximum
Special Tax A
Original
TR 31462-17, -19,
27 281 29
Single Family Residential Property
RU
$438
(ii) Increase in the Maximum S
Jecial Tax A
On each July 1, commencing on July 1, 2026 the Maximum Special Tax A for Developed Property shall increase by i) the year -over -year percentage increase for the month of March in the Consumer Price Index (AII Items) for all Urban Consumers for the Riverside - San Bernardino -Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

(iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final. b. Approved Pro Derty
The Maximum Special Tax A for each Assessor's Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025-M, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone(s) annexed and included in Appendix A. The Maximum Special Tax A for Approved Property for Fiscal Year 2025-26 within Tax Zone Original is identified in Table 2 below:

TABLE 2

MAXIMUM SPECIAL TAX A RATES

APPROVED PROPERTY
Tax
Zone
Tract
Land Use Category
Taxable
Unit
Maximum
Special Tax A
Original
TR 31462-17, -19,
27 28 & 29
Single Family Residential Property
RU
$438
Multi -Family Residential Property
RU
$438
Non -Residential Property
Acre
$2,736
On each July 1, commencing on July 1, 2026 the Maximum Special Tax A for Approved Property shall increase by i) the year -over -year percentage increase for the month of March in the Consumer Price Index (AII Items) for all Urban Consumers for the Riverside -San Bernardino -Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. c. Undeveloped Proaerty
The Maximum Special Tax A for each Assessor's Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025-M, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone(s) annexed and included in Appendix A. The Maximum Special Tax A for Undeveloped Property for Fiscal Year 2025-26 within Tax Zone Original is identified in Table 3 below:

TABLE 3

MAXIMUM SPECIAL TAX A RATES

UNDEVELOPED PROPERTY
Tax Zone
Tracts
Taxable Unit
Maximum Special Tax A
Original
TR 31462-17, -19,
-27, -28 & -29
Acre
$2,736
On each July 1, commencing on July 1, 2026 the Maximum Special Tax A for Undeveloped Property shall increase by i) the year -over -year percentage increase for the month of March in the Consumer Price Index (AII Items) for all Urban Consumers for the Riverside -San Bernardino - Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

2. Special Tax B (Contingent)
The City Council may levy the Special Tax B (Contingent), applicable to all Zones, commencing in the first Fiscal Year following the occurrence of any of the following events (each such event, a "Failure to Perform"):
a. the Property Owner Association files a voluntary petition in bankruptcy or the approval by a court of competent jurisdiction of a petition applicable to the Property Owner Association of any proceedings instituted under the Federal Bankruptcy Code, as amended;
b. the Property Owner Association is dissolved;
c. the Property Owner Association fails to levy annual assessments sufficient to fund (i) the maintenance for the then Property Owner Association owned and/or Property Owner Association maintained Maintenance Services (Contingent) or (ii) the replacement of such facilities related to the Maintenance Services (Contingent) in accordance with (A) the requirements of the then current reserve funding plan of the Property Owner Association performed pursuant to California Civil Code Section 5550 or (B) if California Civil Code 5550 is no longer applicable, the requirements of the then applicable law and/or regulations governing the Property Owner Association's requirements to budget for and finance such replacement; or
d. the Property Owner Association fails to maintain the Maintenance Services (Contingent) at the same level as defined within the Property Owner Association maintenance specifications. In the event the Property Owner Association maintenance specifications do not meet the City maintenance requirements, the City Council will have sole discretion to determine the required level of maintenance required for purposes of this section.

In the event of the occurrence of a Failure to Perform described in "c." or "d." above, the City shall give the Property Owner Association written notice of such event. If such Failure to

Perform is reasonably capable of being cured within sixty (60) days from the date of such notice, the Property Owner Association shall have such period of time to cure such Failure to Perform prior to the levy by the City Council of Special Tax B (Contingent). If such Failure to Perform is such that it is reasonably capable of being cured, but not within such sixty (60) day period and the Property Owner Association (i) initiates corrective action within such sixty (60) day period, and (ii) diligently, continually, and in good faith works to effect a cure of such Failure to Perform as soon as possible, then the Property Owner Association shall have such additional time, as is reasonably necessary, to cure such Failure to Perform prior to the levy by the City Council of Special Tax B (Contingent).

The City Council may suspend the levy of Special Tax B (Contingent) if the Property Owner Association has cured the Failure to Perform to the satisfaction of the City Council and the Property Owner Association has agreed to such conditions as the City Council may find necessary to minimize the occurrence of such Failure to Perform in the future. In the event the City Council initiates the Special Tax B (Contingent), it will apply to all Assessor's Parcels of Taxable Property in addition to, and not in lieu of, the Special Tax A. a. Develo
(i)
Ded Property
Maximum Special Tax B (Contingent)
The Maximum Special Tax B (Contingent) for each Assessor's Parcel of Taxable Property is shown in Table 4 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025-M, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2025-26 within Tax Zone Original is identified in Table 4 below:

TABLE 4

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

DEVELOPED PROPERTY
Tax
Zone
Tract
Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
Original
TR 31462-17, -19,
27 28 & 29
Single Family Residential Property
RU
$357
Multi -Family Residential Property
RU
$357
Non -Residential Property
Acre
$2,229
(ii) Increase in the Maximum Special Tax B (Contingent) On each July 1, commencing on July 1, 2026 the Maximum Special Tax B (Contingent) for Developed Property shall increase by i) the year -over -year percentage increase for the month of March in the Consumer Price Index (AII Items) for all Urban Consumers for the Riverside -San Bernardino -Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

(iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final. b. Approved Property
The Maximum Special Tax B (Contingent) for each Assessor's Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025-M, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone(s) annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2025-26 within Tax Zone Original is identified in Table 5 below:

TABLE 5

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

APPROVED PROPERTY
Tax
Zone
Tract
Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
Original
TR 31462-17, -19,
27 28 & 29
Single Family Residential Property
RU
$357
Multi -Family Residential Property
RU
$357
Non -Residential Property
Acre
$2,229
On each July 1, commencing on July 1, 2026 the Maximum Special Tax B (Contingent) for Approved Property shall increase by i) the year -over -year percentage increase for the month of March in the Consumer Price Index (AII Items) for all Urban Consumers for the Riverside -San Bernardino -Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
c. Undeveloped Property
The Maximum Special Tax B (Contingent) for each Assessor's Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025-M, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone(s) annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2025-26 within Tax Zone Original is identified in Table 6 below:

TABLE 6

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

UNDEVELOPED PROPERTY
Tax Zone
Tracts
Taxable Unit
Maximum Special
Tax B (Contingent)
Original
TR 31462-17, -19,
27 28 & -29
Acre
$2,229
On each July 1, commencing on July 1, 2026 the Maximum Special Tax B (Contingent) for Undeveloped Property shall increase by i) the year -over -year percentage increase for the month of March in the Consumer Price Index (AII Items) for all Urban Consumers for the Riverside -San Bernardino -Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX

1. Special Tax A
Commencing with Fiscal Year 2025-26 and for each following Fiscal Year, the City Council shall determine the Special Tax A Requirement for each Tax Zone and shall levy the Special Tax A on all Assessor's Parcels of Taxable Property within such Tax Zone until the aggregate amount of Special Tax A equals the Special Tax A Requirement for such Tax Zone. The Special Tax A shall be levied for each Fiscal Year as follows:

First: The Special Tax A shall be levied Proportionately on all Assessor's Parcels of Developed Property up to 100% of the applicable Maximum Special Tax A to satisfy the Special Tax A Requirement;
Second: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax A for Approved Property; Third: If additional monies are needed to satisfy the Special Tax A Requirement after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all Assessor's Parcels of Undeveloped Property up to 100% of the Maximum Special Tax A for Undeveloped Property.

2. Special Tax B (Contingent)
Commencing with the first Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for each following Fiscal Year, the City Council shall determine the Special Tax B (Contingent) Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor's Parcels of Taxable Property within such Tax Zone until the aggregate amount of Special Tax B

(Contingent) equals the Special Tax B (Contingent) Requirement for such Tax Zone. The Special Tax B (Contingent) shall be levied for each Fiscal Year as follows:

First: The Special Tax B (Contingent) shall be levied Proportionately on all Assessor's Parcels of Developed Property up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy the Special Tax B (Contingent) Requirement;
Second: If additional moneys are needed to satisfy the Special Tax B (Contingent) Requirement after the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax B (Contingent) for Approved Property;
Third: If additional monies are needed to satisfy the Special Tax B (Contingent) Requirement after the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on all Assessor's Parcels of Undeveloped Property up to 100% of the Maximum Special Tax B (Contingent) for Undeveloped Property.

E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2025-M from time to time.

As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services to such properties. Based on this analysis, any properties to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned the appropriate Maximum Special Tax rates for the Tax Zone when annexed and included in Appendix A.

F. DURATION OF SPECIAL TAX
For each Fiscal Year, the Special Tax A shall be levied as long as the Maintenance Services are being provided.

For each Fiscal Year, the Special Tax B (Contingent) shall be levied as long as the Maintenance Services (Contingent) are being provided.

G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2025-M, all Assessor's Parcels; (i) which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) which are privately owned but are encumbered by or restricted solely for public uses; or (iv) which are in use in the performance of a public function as determined by the Administrator; (v) any Assessor's Parcel that qualifies for a welfare exemption under applicable state or local law; or (vi) any Assessor's Parcel that is owned by a property owner association and used for common area purposes.

H. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator of CFD No. 2025-M

shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the Administrator's decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s).

I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2025-M may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

J. INTERPRETATION
Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.

APPENDIX A

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-M (MAINTENANCE SERVICES)

COST ESTIMATE
Special Tax A - The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2025-26. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2025-M Tax Zone 1.

TAX ZONE 1 (MAINTENANCE SERVICES)
TTM 38879
Item
Description
Estimated Cost
1 Streetlights
$392
2 Street & Pavement(1)
$2,448
3 Parks
$1,699
4 Graffiti Abatement
$36
5 Reserves
$60
6 Administration
$1,135
Total
$5,770
(1) Street and Pavement maintenance services include basic services to preserve the integrity of the surface, such as repairing potholes and sinkholes and applying seals. Long-term replacement is not included in the estimated Costs.

TAX ZONE 1 (CONTINGENT SERVICES)
TTM 38879
Special Tax B (Contingent) — The estimate breaks down the costs of providing one year's contingent maintenance services for Fiscal Year 2025-26. If necessary, these services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2025-M Tax Zone 1.

Item
Description
Estimated Cost
1 Drainage
$2,072
2 Reserves
$207
3 Administration
$885
Total
$3,164
TAX ZONE 1
FY 2025-26 MAXIMUM SPECIAL TAX RATES
Land Use
Category
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Developed
RU
$577
$316
Approved
RU
$3,158
$1,732
Undeveloped
Acre
$3,158
$1,732

MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE
Tax
Zone
Fiscal
Year
Included
Tract
No. of
Taxable
Units
Land Use
Category
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
(Contingent)
Subdivider
Original
2025-26
31462 17, -19, 27,
-28 & -29
366
SFR
RU
$438
$357
Meritage Homes
1 2025-26
TTM 38879
10 SFR
RU
$577
$316
Penn St.

Development,
LLC

ESCALATION OF MAXIMUM SPECIAL TAXES
On each July 1, commencing on July 1, 2026 the Maximum Special Taxes for Developed Property, Approved Property, and Undeveloped Property shall increase by i) the year -over -year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside -San Bernardino -Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

APPENDIX B

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-M (MAINTENANCE SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2025-M, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-way, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance and servicing of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2025-M; as well as local roads within residential subdivisions located within CFD No. 2025-M; and any portions adjacent to the properties within CFD No. 2025-M; and In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay "Administrative Expenses," as said term is defined in the Rate and Method of Apportionment.

The above services may be financed by proceeds of the special tax of CFD No. 2025-M only to the extent that they are in addition to those provided in the territory of CFD No. 2025-M before CFD No. 2025-M was created or those provided in the territory annexed to CFD No. 2025-M before the territory was annexed, as applicable.

APPENDIX C

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-M (MAINTENANCE SERVICES)

PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA BOUNDARIES

EXHIBIT D

ANNEXATION AND POTENTIAL ANNEXATION BOUNDARY MAPS
(ON FOLLOWING PAGES)

THIS MAP SHOWS THE BOUNDARIES OF AREAS TO BE ANNEXED
TO COMMUNITY FACILITIES DISTRICT NO. 2025-M (MAINTENANCE

SERVICES) OF THE CITY OF BEAUMONT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA.

THE BOUNDARIES OF WHICH COMMUNITY FACILITIES DISTRICT

ARE SHOWN AND DESCRIBED ON THE MAP THEREOF WHICH
WAS PREVIOUSLY RECORDED ON 12TH DAY OF NOVEMBER, 2025,
IN BOOK 98 OF MAPS OF ASSESSMENT AND COMMUNITY
FACILITY DISTRICTS AT PAGE 9 AND AS INSTRUMENT NO.
2025-0354753 IN THE OFFICE OF THE COUNTY RECORDER
OF THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA.

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED
BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2025-M
(MAINTENANCE SERVICES), CITY OF BEAUMONT, COUNTY OF

RIVERSIDE, STATE OF CALIFORNIA, WAS APPROVED BY THE CITY

COUNCIL OF THE CITY OF BEAUMONT AT A REGULAR MEETING
THEREOF, HELD ON DAY OF 20 BY
RESOLUTION NO.

CITY CLERK

CITY OF BEAUMONT

FILED IN THE OFFICE OF THE CITY CLERK, CITY OF BEAUMONT, THIS DAY OF . 20 .

CITY CLERK

CITY OF BEAUMONT
60 I _
__I' L_il(_.l`
in
79 CFD 2025-M
TAX ZONE 1
I
i BEAUMONT
SPICER

CONSULTING GROUP
PROPOSED ANNEXATION MAP NO. 1
COMMUNITY FACILITIES DISTRICT NO. 2025-M
(MAINTENANCE SERVICES)

CITY OF BEAUMONT,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

MASSACHUSETTS
O
415-200-031

ELEVENTH ST
z
}
z
z
z
0 125 250 500 Feet
SHEET 1 OF 1 SHEET

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED
RECORDED THIS DAY OF 20 AT
THE HOUR OF O'CLOCK _M IN BOOK

PAGE OF MAPS OF ASSESSMENT AND COMMUNITY

FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY

RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.

FEE: NO.:

PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY:

DEPUTY
LEGEND

CITY BOUNDARY

CFD BOUNDARY

PARCEL LINE

XXX-XXX-XXX ASSESSOR PARCEL NUMBER

O TAX ZONE

THIS BOUNDARY MAP CORRECTLY SHOWS THE LOT OR PARCEL OF LAND

INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT

FOR DETAILS CONCERNING THE LINES AND DIMENSIONS OF LOTS OR PARCEL REFER TO THE COUNTY ASSESSOR MAPS FOR FISCAL YEAR 2025-26.

76 cofs
%/

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED

BOUNDARIES OF THE POTENTIAL ANNEXATION AREA OF
COMMUNITY FACILITIES DISTRICT NO. 2025-S (MAINTENANCE

SERVICES), CITY OF BEAUMONT, COUNTY OF RIVERSIDE,

STATE OF CALIFORNIA, WAS APPROVED BY THE CITY OF

BEAUMONT AT A REGULAR MEETING THEREOF, HELD
ON ib DAY OF fklotl, 2025 BY RESOLUTION
NO. 2025 - (02 -

CITY CLERK

CITY OF BEAUMONT

FILED IN THE OFFICE OF THE CITY CLERK,
CITY OF BEAUMONT, THIS 414' DAY OF tjov. 2025 .

CA IQ a1U
CITY CLERK o

CITY OF BEAUMONT
60 CITY OF

BEAUMONT
SPICER

CONSULTING GROUP
W+E
60 BOUNDARIES - POTENTIAL ANNEXATION AREA
COMMUNITY FACILITIES DISTRICT NO. 2025-M
(MAINTENANCE SERVICES)

CITY OF BEAUMONT,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
79 SHEET 1 OF 1 SHEET
RECORDED THIS /a DAY OF Q\30\14.4.1aX 2025 AT
THE HOUR OF .31s O'CLOCK .EM IN BOOK 98

PAGE IC) OF MAPS OF ASSESSMENT AND COMMUNITY

FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY

RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.

FEE: 4° NO.: a.0,15-035 7Stf

PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY: (/mil q,/
DEPUTY
LEGEND

ANNEXATION BOUNDARY

EXHIBIT E

PETITION TO THE CITY COUNCIL OF THE CITY OF BEAUMONT REQUESTING

ANNEXATION INTO A COMMUNITY FACILITIES DISTRICT OF PROPERTY WITHIN

THE CITY OF BEAUMONT AND A WAIVER WITH RESPECTS TO CERTAIN

PROCEDURAL MATTERS UNDER THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 AND CONSENTING TO THE LEVY OF SPECIAL TAXES THEREON TO

PAY THE COSTS OF SERVICES TO BE PROVIDED BY THE COMMUNITY

FACILITIES DISTRICT

1. The undersigned requests that the City Council of the City of Beaumont, initiate and conduct proceedings pursuant to the Mello -Roos Community Facilities Act of 1982 (the "Act") (Government Code Section 53311 et seq.), for the annexation into Community Facilities District No. 2025-M (the "Community Facilities District") of the property described below and consents to the annual levy of special taxes on such property to pay the costs of services to be provided by the community facilities district.

2. The undersigned requests that the community facilities district provide any services that are permitted under the Act including, but not limited to, all necessary service, operations, administration and maintenance required to keep the landscape lighting, street lighting, traffic signals, flood control facilities, ground cover, shrubs, plants and trees, irrigation systems, graffiti removal, sidewalks and masonry walls, fencing entry monuments, tot lot equipment and associated appurtenant facilities within the district in a healthy, vigorous and satisfactory working condition.

3. The undersigned hereby certifies that as of the date indicated opposite its signature, it is the owner of all the property within the proposed boundaries of the Community Facilities District as described in Exhibit A hereto and as shown on the map Exhibit B hereto.

4. The undersigned requests that a special election be held under the Act to authorize the special taxes for the proposed community facilities district. The undersigned waives any requirement for the mailing of the ballot for the special election and expressly agrees that said election may be conducted by mailed or hand -delivered ballot to be returned as quickly as possible to the designated election official, being the office of the City Clerk and the undersigned request that the results of said election be canvassed and reported to the City Council at the same meeting of the City Council as the public hearing on the creation of the Community Facilities District or at the next available meeting.

5. Pursuant to Sections 53326(a) and 53327(b) of the Act, the undersigned expressly waives all applicable waiting periods for the election and waives the requirement for analysis and arguments relating to the special election, and consents to not having such materials provided to the landowner in the ballot packet, and expressly waives any requirements as to the form of the ballot. The undersigned expressly waives all notice requirements relating to hearings and special elections (except for published notices required by the Act), and whether such requirements are found in the California Elections Code, the California Government Code or other laws or procedures, including but not limited to any notice provided for by compliance with the provisions of Section 4101 of the California Elections Code. The undersigned expressly waives the word limit requirement for the ballots pursuant to Section 13247 and 9051 of the Election Code.

6. The undersigned hereby consents to and expressly waives any and all claims based on any irregularity, error, mistake or departure from the provisions of the Act or other laws of the State in the conduct of the election to form the Community Facilities District, and no step or action in any proceeding relative to the election to create the Community Facilities District of the portion of the incorporated area of

the City of Beaumont or the special election therein shall be invalidated or affected by any such irregularity, error mistake or departure.

IN WITNESS WHEREOF, I hereunto set my hand this day of , 20 . [NAME OF LANDOWNER]
By:

Name:

Title:

OWNER'S PROPERTY:

TRACT MAP OR PARCEL MAP NO.
or PROJECT NO.

OWNER'S MAILING ADDRESS:

FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY COUNCIL OF THE CITY OF BEAUMONT THIS DAY OF , 20 .

City Clerk of the City Council of the
City of Beaumont

INSERT EXHIBIT A: BOUNDARY DESCRIPTION

INSERT EXHIBIT B: TRACT/PARCEL/SUBDIVISION MAP

EXHIBIT F

NOTICE OF PUBLIC HEARING

NOTICE OF PUBLIC HEARING ON RESOLUTION OF INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT NO. 2025-M (MAINTENANCE SERVICES) (ANNEXATION NO. 1)
NOTICE IS HEREBY GIVEN that the City Council of the City of Beaumont on April 7, 2026 adopted its Resolution No. 2026- , in which it declared its intention to annex territory to existing Community Facilities District No. 2025-M (Maintenance Services) (the "CFD No. 2025-M"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello -Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax. No change in the tax levied in the existing CFD No. 2025-M is proposed.

NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 6:00 p.m., or as soon thereafter as practicable, Tuesday, May 19, 2026, at 550 E. Sixth Street, Beaumont, California, as the time and place when and where the City Council will conduct a public hearing on the annexation of territory to CFD No. 2025-M. At the hearing, the testimony of all interested persons for or against the annexation of the territory or the levying of the special taxes will be heard. 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. A copy of the Agenda will be made available upon request to the Beaumont City Clerk's office at 951-572-3196.

DATED: , 2026
City Clerk of the City of Beaumont
PUB: , 2026

EXHIBIT G
BALLOT

CITY OF BEAUMONT

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2025-M (MAINTENANCE SERVICES) ANNEXATION NO. 1
(May 19, 2026)
This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2025-M (Maintenance Services) ("CFD No. 2025-M") of the City of Beaumont:

Name of Landowner Number of Acres Owned
Penn St. Development, LLC 2.03
Total Votes
3 According to the provisions of the Mello -Roos Community Facilities Act of 1982, and resolutions of the City Council (the "Council") of the City of Beaumont (the "City"), the above -named landowner is entitled to cast the number of votes shown above under the heading "Total Votes," representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to be annexed to the CFD No. 2025-M, City of Beaumont, County of Riverside, State of California. Please advise the City Clerk, at (951) 572-3196 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows:

Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail no later than May 5, 2026, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted.

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 5:00 p.m. on May 19, 2026, at the Clerk's office at 550 E. Sixth Street, City of Beaumont, CA 92223.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on May 19, 2026.

Very truly yours,
Elaine Morgan
City Clerk
City of Beaumont

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner:

Assessor's Parcel Number(s):

Penn St. Development, LLC
Attn: Dean Cook
PO Box 1137
Costa Mesa, CA 92628
415-200-031

CITY OF BEAUMONT

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2025-M (MAINTENANCE SERVICES) AN "X" OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT

SPECIAL TAX BALLOT MEASURE
Shall the City Council of the City of Beaumont be authorized to levy a special tax on an annual basis at the rates set forth in the following table:

Land Use Category
Maximum Special
Tax A
Maximum Special
Tax B (Contingent)
Single -Family Residential
$577
$316
plus an annual increase on each July 1, commencing on July 1, 2026 the Maximum Special Tax shall increase by i) the year -over -year percentage increase for the month of March in the Consumer Price Index (AII Items) for Riverside — San Bernardino - Ontario (December 2017 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater, to finance certain services within the territory identified on the map entitled "Annexation Map No. 1 of Community Facilities District No. 2025-M (Maintenance Services) City of Beaumont" including streetlights, streets, parks, and graffiti abatement for Special Tax A, and drainage for Special Tax B (Contingent), as provided in the Rate and Method of Apportionment which is attached as Exhibit C to Resolution No. 2026-_ adopted by the City Council of the City of Beaumont on April 7, 2026 (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2025-M (Maintenance Services) in the amount of special taxes collected? MARK "YES" OR "NO"
WITH AN "X":

YES
NO
Certification for Special Election Ballot
The undersigned is an authorized representative of the above -named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above -named landowner.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct, and that this declaration is executed on , 20_.

Dean Cook
Manager
Signature
Print Name

MAINTENANCE EXHIBIT
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CITY or BEAUMMONT, CALIFORNIAN
TRACT NO. 38879
1 SITE PLAN sdrts

BEAUMONT
-C A L I F O R N A -
Staff Report
TO: Honorable Mayor and Members of the City Council
FROM: Kari Mendoza, Interim Deputy City Manager
BY: Darron Usher, Principal Management Analyst
DATE: April 7, 2026
SUBJECT: Resolution of Intention for Annexation No. 1, Baldwin Ranch, into Community Facilities District No. 2025-S (Public Services) Description: The proposed action initiates the annexation of territory into Community Facilities District No. 2025-S ("CFD No. 2025-S"). CFD No. 2025-S allows for the levy of special taxes on parcels of taxable property to provide, among others, police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.

Background and Analysis:

On December 16, 2025, the City Council adopted Resolution No. 2025-74, establishing CFD No. 2025-S pursuant to the provision of the Mello -Roos Community Facilities Act of 1982 ("Act"). CFD No. 2025-S allows for the levy of special taxes on parcels of taxable property to provide, among others, police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.

Penn St. Development, LLC, ("Owner"), owns Tentative Tract Map ("TTM") 38879, which consists of approximately two acres of a residential vacant lot. The property is located on the northwest corner of Pennsylvania Avenue and Eleventh Street, as shown in the attached Project Location map. The Owner has requested that the City assist them in annexing TTM 38879 into CFD No. 2025-S to fund ongoing public safety services. The area proposed for the annexation would be designated as "Annexation No. 1," and at build -out would include ten (10) single-family residential lots.

The landowner has advised the City that the area described in Exhibit "B" of the Resolution of Intention is to be annexed into CFD No. 2025-S and that a Rate and Method of Apportionment of the special taxes to be levied as described in Exhibit "C".

The proposed total maximum tax rate for single-family residential unit is $639 per unit per year, starting Fiscal Year 2025-26. The Special Taxes within CFD No. 2025-S may be levied each Fiscal Year, commencing July 1, 2025. On each July 1, commencing on

July 1, 2026, the Maximum Special Tax for Developed Property of Single -Family Property and Multi -Family Property shall increase by the greater of CPI or five percent (5.0%).

The City has agreed to the annexation into the CFD, and the Owners have submitted a "Consent and Waiver" form on file in the City Clerk's Office, to initiate and conduct proceedings pursuant to the Mello -Roos Act of 1982, requesting the annexation of property to CFD No. 2025-S and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election.

The next step in annexing the property to CFD No. 2025-S is to publish a notification of the proposed Annexation along with the "Resolution of Intention" and Boundary Map of the proposed Annexation area. A public hearing on the matter will take place on June 2, 2026, and at that time the Council will formally consider approval of Annexation No.

1. Fiscal Impact:

The Owners have made a deposit to pay for the costs of the Annexation.

The Annexation will result in property owners paying a tax of $639 per unit for single- family residential units, plus an annual escalation of the greater of CPI or 5%.

Recommended Action:

Accept the Petition of Penn St. Development, LLC, TTM 38879, located on the northwest corner of Pennsylvania Avenue and Eleventh Street, into CFD No. 2025-S (Public Services), as Annexation No. 1; and
Adopt by title only, a "Resolution of the City Council of the City of Beaumont, California, Declaring its Intention to consider Annexing Territory to Community Facilities District No. 2025-S (Public Service) of the City of Beaumont" and to set a public hearing for June 2, 2026.

Attachments:

A. Project Map
B. Resolution of Intention
C. Exhibits A -G

PROJECT MAP
COMMUNITY FACILITIES DISTRICT NO. 2025-S
(PUBLIC SERVICES)
ANNEXATION NO. 1
SPICER

CONSULTING GROUP

BEAWIMONT

RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

BEAUMONT, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-S (PUBLIC SERVICE)

OF THE CITY OF BEAUMONT, DECLARING ITS INTENTION TO

CONSIDER ANNEXING TERRITORY TO COMMUNITY FACILITIES
DISTRICT NO. 2025-S (PUBLIC SERVICES) OF THE CITY OF

BEAUMONT
WHEREAS, on November 4, 2025, the City Council (the "City Council") of the City of Beaumont adopted Resolution No. 2025-63 (the "Resolution of Intention"), declaring its intention to establish Community Facilities District No. 2025-S of the City of Beaumont (Public Services) ("Community Facilities District No. 2025-S" or the "District") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the "Act"); and
WHEREAS, after a duly noticed public hearing, the City Council adopted Resolution No. 2025- 74 (the "Resolution of Formation") establishing Community Facilities District No. 2025-S and calling a special election therein to authorize (i) the levy of special taxes pursuant to the rate and method of apportionment of the special tax, as set forth in Exhibit "C" attached to the Resolution of Intention (the "Original Rate and Method"), and (ii) the establishment of an appropriations limit for Community Facilities District No. 2025-S; and
WHEREAS, the City Council has received a petition from and signed by Penn St. Development, LLC (the "Owner"), requesting (i) the annexation of the territory within the boundaries set forth in Exhibit "A", hereto (the "Annexation Territory") to the District; (ii) the levy of the special tax within the Annexation Territory in accordance with the Rate and Method of Apportionment of Special Tax attached as Exhibit "C", hereto (the "Rate and Method"), which Rate and Method is identical to the Original Rate and Method in all respects except that Appendix A thereto has been updated in accordance with the terms of the Original Rate and Method to reflect the annexation described herein and (iii) the waiving certain election requirements; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BEAUMONT, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-S (PUBLIC SERVICES) HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:

Section 1. Recitals. Each of the above recitals is true and correct.

Section 2. Intent to Annex. The City Council declares its intention to conduct proceedings pursuant to the Act for the annexation to the District of the Annexation Territory.

Section 3. Description of Territory Proposed to be Annexed, Annexation Map. The map showing the original boundaries of the District designated as "Map of Proposed Boundaries of Community Facilities District No. 2025-S of the City of Beaumont (Public Services)," which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the City of County Book of Maps of Assessment and Community Facilities

CC Res. No. 2026 -

Districts in the Assessor -County Clerk -Recorder's office of the County of Riverside in Book No. 98 Page No. 11, on November 12, 2025 as Instrument No. 2025-0354755.

The boundaries of the Annexation Territory proposed to be annexed to the District and be made subject to taxation are as shown on the annexation map set forth in Exhibit "D" hereto (the "Boundary Map").

The City Clerk is hereby directed to sign the boundary map and record it with all proper endorsements thereon with the County Recorder of the County of Riverside within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.

Section 4. Description of Authorized Services. The Services (as defined in the Rate and Method) proposed to be provided for the benefit of the Annexation Territory are public services as defined in the Act, and this City Council finds and determines that the Services to be financed are in addition to those provided in the territory of the Annexation Territory, at the present time and do not supplant services already available within the Annexation Territory at the present time. The City Council hereby fords and determines that the description of the Services herein is sufficiently informative to allow taxpayers within the Annexation Territory, to understand what the funds of the District may be used to finance. The Services Incidental Expenses (as defined in the Rate and Method) expected to be incurred within the Annexation Territory are set forth in the Rate and Method. The amount and term of the special tax to be levied by the District within the Annexation Territory and the Services to be provided by the District within the Annexation Territory shall be identical to those within the original boundaries of the District.

Section 5. Levy of Special Taxes. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act a separate special tax, secured by recordation of a continuing lien against all nonexempt real property in the Annexation Territory, sufficient to pay for the Services and the Services Incidental Expenses. The rate and method of apportionment and manner of collection of the special taxes set forth in Exhibit "C" allows each homeowner within the Annexation Territory to estimate the maximum amount that may be levied against each parcel.

The special taxes for Services may be increased based on the consumer price index by an amount not to exceed five percent (5%) per year to the extent permitted in the Rate and Method. The special tax for Services may be levied for such period as the Services are needed, as further described in Exhibit "B" hereto.

The special taxes are based on the expected demand that each parcel of real property within the Annexation Territory will place on the Services. The City Council hereby determines that the proposed Services are necessary to meet the increased demand placed upon the City and the existing police, fire, rescue and paramedic services in the City as a result of the development of the land proposed for annexation to the District. The City Council hereby determines the rate and method of apportionment of the special taxes set forth in Exhibit "C" to be reasonable. The special tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special taxes are not on or based upon value or ownership of real property.

Section 6. Public Hearing. A public hearing (the "Hearing") on the annexation of the Annexation Territory to the District, the levy of the special tax within the Annexation Territory in accordance with the Rate and Method to finance the Services shall be held on June 2, 2026. Should the City Council determine to annex the Annexation Territory to the District, a special election will be held to authorize the levy of the special taxes in accordance with the procedures contained in Government

CC Res. No. 2026 -

Code Section 53326. If held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within Annexation Territory at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the Annexation Territory. Ballots for the special election may be distributed by mail or by personal service.

Section 7. Adjustments. The City Council does not intend to make any adjustment in property taxation pursuant to Sections 53313.6 and 53313.7 of the Act.

Section 8. Public Hearing. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within the Annexation Territory, may appear to be heard.

Section 9. Notice of Public Hearing. The City Clerk is hereby directed to publish a notice (the "Notice") of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the Annexation Territory. The City Clerk is further directed to mail a copy of the Notice to each landowner within the Annexation Territory at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.

Section 10. Effective Date. This Resolution shall be effective upon its adoption.

PASSED, APPROVED, AND ADOPTED this 7t'' day of April 2026.

Jessica Voigt, Mayor of the City of Beaumont
(SEAL)
ATTEST:

Nicole Wheelwright, Deputy City Clerk
of the City of Beaumont

CC Res. No. 2026 -

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF BEAUMONT )
I, Elaine Morgan, City Clerk of the City of Beaumont, do hereby certify that the foregoing resolution was duly adopted by the City Council of said City, at a regular meeting of said City Council held on the 7th day of April, 2026, and that it was so adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Elaine Morgan, City Clerk City of
Beaumont

EXHIBIT A

DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
The City of Beaumont Community Facilities District No. 2025-S (Public Services) (the "CFD No. 2025-S") Annexation No. 1 is currently comprised of one (1) parcel, located within the city boundaries. The properties are identified by the following Riverside County Assessor's Parcel Number (APN).

APN
Owner Name
415-200-031
Penn St. Development, LLC

EXHIBIT B

DESCRIPTION OF AUTHORIZED SERVICES

EXHIBIT B

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-S (PUBLIC SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2025-S, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety.

These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay "Administrative Expenses" as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs of services as determined by the Administrator.

The above services shall be limited to those provided within the boundaries of CFD No. 2025-S for the benefit of the properties within the boundaries of CFD No. 2025-S and said services may be financed by proceeds of the special tax of CFD No. 2025-S only to the extent that they are in addition to those provided in the territory of CFD No. 2025-S before CFD No. 2025-S was created.

City of Beaumont Page 675 of 1155
Community Facilities District No. 2025-S (Public Services)

EXHIBIT C

RATE AND METHOD OF APPORTIONMENT

EXHIBIT C

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-S (PUBLIC SERVICES)

OF THE CITY OF BEAUMONT
A Special Tax (the "Special Tax") shall be levied on and collected from each Assessor's Parcel (defined below) in Community Facilities District No. 2025-S (Public Services) (the "CFD No. 2025-S" or "CFD"; defined below), in each Fiscal Year, (defined below), in each Fiscal Year on an Assessor's Parcel shall be determined by the City Council of the City of Beaumont, acting in its capacity as the legislative body of CFD No. 2025-S, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2025-S, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS
"Accessory Dwelling Unit" means a residential unit of limited size including smaller secondary unit(s) that shares an Assessor's Parcel with Single Family Property that has a stand-alone Residential Unit. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the formation and administration of CFD No. 2025-S including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2025-S, or any designee thereof associated with fulfilling the CFD No. 2025-S reporting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025-S or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees, collection expenses, and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025-S for any other administrative purposes of CFD No. 2025-S, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
"Administrator" means the City Manager of the City of Beaumont, or his or her designee. "Assessor's Parcel" means a lot or parcel of land that is identifiable by an Assessor's Parcel Number by the County Assessor of the County of Riverside.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel Number.
"Assessor's Parcel Number" means the identification number assigned to a parcel by the County Assessor of the County of Riverside.
"Building Permit" means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, "Building Permit" may or may not include expired or cancelled Building Permits, or any subsequent Building Permit document(s) authorizing new construction on an Assessor's Parcel that are issued or changed by the City after the first original issuance, as determined by the Administrator.
"CFD" or "CFD No. 2025-S" means the City of Beaumont Community Facilities District No. 2025-S (Public Services).

"CFD Boundary Map" means a recorded map of the CFD that indicates by a boundary line the extent of the territory identified to be subject to the levy of Special Taxes. "City" means the City of Beaumont, State of California. "County" means the County of Riverside, State of California. "Developed Property" means all Assessor's Parcels of Taxable Property for which a Building Permit for new construction has been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.
"Exempt Property" means all Assessors' Parcels designated as being exempt from the Special Tax as provided for in Section D.
"Fiscal Year" means the period from and including July 1st of any year to and including the following June 30tH
"Maximum Special Tax" means the Maximum Special Tax, as applicable, levied within the CFD for any Fiscal Year.
"Multi -Family Property" means all Assessor's Parcels of Developed Property for which a Building Permit or use permit for the construction of a residential structure with two or more Residential Units that share a single Assessor's Parcel Number, as determined by the Administrator, has been issued prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied. "Proportionately" means for Taxable Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor's Parcels. "Rate and Method of Apportionment" or "RMA" means this Rate and Method of Apportionment of Special Taxes.
"Residential Property" means all Assessor's Parcels of Taxable Property upon which completed Residential Units have been constructed or for which Building Permits have been or may be issued for purposes of constructing one or more Residential Units. "Residential Unit" or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. An Accessory Dwelling Unit that shares an Assessor's Parcel with a Single Family Property shall not be considered a Residential Unit for purposes of this Rate and Method of Apportionment.
"Safety Services" means public safety services permitted under the Mello -Roos Community Facilities Act of 1982 including, without limitation, police and fire protection, ambulance and paramedic services authorized to be funded by CFD No. 2025-S as set forth in Appendix B. "Single Family Property" means any residential property other than a Multi -Family Property on an Assessor's Parcel for which a Building Permit for new construction has been issued by the City on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

City of Beaumont Page 678 of 1155
Community Facilities District No. 2025-S (Public Services)

"Special Tax" means the Special Tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property.
"Special Tax Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the public safety needs of CFD No. 2025-S in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Safety Services, (ii) amount necessary to fund an operating reserve for the costs of Safety Services as determined by the CFD Administrator, and (iii) Administrative Expenses applicable to the Special Tax. Under no circumstances shall the Special Tax Requirement include funds for bonds or other forms of indebtedness.
"Taxable Property" means all Assessor's Parcels within CFD No. 2025-S, which are not Exempt Property.
"Taxable Unit" means a Residential Unit.
"Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property.

B. RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX RATES As of July 1 of each Fiscal Year, commencing July 1, 2025, the Council shall determine the Special Tax Requirement and shall levy the Special Tax upon each of the Assessor's Parcels within the CFD which constitute a Developed Property of Residential Property, including Single Family Property or Multi - Family Property, until the aggregate amount of Special Tax equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on all Assessor's Parcels of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement.

No Special Tax shall be levied upon Undeveloped Property for which a Building Permit has not been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

The Maximum Special Tax for Fiscal Year 2025-2026 for a Single Family Property and Multi -Family Property are shown below in Table 1.

TABLE 1

MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2025-2026
Description
Taxable
Unit
Maximum
Special Tax
Single Family Property
RU
$639
Multi -Family Property
RU
$526
Increase in the Maximum Special Tax
On each July 1, commencing July 1, 2026, the Maximum Special Tax for Developed Property of Single Family Property and Multi -Family Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the twelve-month period ending in January of the prior Fiscal Year or (ii) five percent (5%).

City of Beaumont Page 679 of 1155
Community Facilities District No. 2025-S (Public Services)

C. TERM OF SPECIAL TAX
For each Fiscal Year, the Maximum Special Taxes shall be levied as long as the Safety Services are being provided within the boundaries of CFD No. 2025-S.

D. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2025-S, any Assessor's Parcel in any of the following categories; (i) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor's Parcels which are privately owned but are encumbered by or restricted solely for public uses; (iv) any Assessor's Parcel which is in use in the performance of a public function as determined by the Administrator; or (v) any Assessor's Parcel which is not a Single Family Property or Multi -Family Property; (vi) any Assessor's Parcel that qualifies for a welfare exemption under applicable state or local law; or (vii) any Assessor's Parcel that is owned by a property owner association and used for common area purposes.

E. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the Administrator's decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s).

F. MANNER OF COLLECTION
The Maximum Special Taxes levied in each Fiscal Year shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes.

However, the District may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

The Maximum Special Taxes when levied shall be secured by the lien imposed pursuant to Section 3115.5 of the Streets and Highways Code. This lien shall be a continuing lien and shall secure each levy of Maximum Special Taxes. The lien of Maximum Special Taxes shall continue in force and effect until the Special Tax ceases to be levied in the manner provided by Section 53330.5 of the Government Code.

G. INTERPRETATION
Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.

City of Beaumont Page 680 of 1155
Community Facilities District No. 2025-S (Public Services)

APPENDIX A

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-S (PUBLIC SERVICES)

SUMMARY
Safety Services - It is estimated that the cost of providing police, fire protection and suppression services, and paramedic services being funded by the Special Tax for the Community Facilities District No. 2025-S (Public Services) will be as follows for the Fiscal Year 2025-2026:
• $639 per residential unit for Single Family Property
• $526 per residential unit for Multi -Family Property
Annual Escalation - On each July 1, commencing July 1, 2026, the Maximum Special Tax for Developed Property of Single Family Property and Multi -Family Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the twelve- month period ending in January of the prior Fiscal Year or (ii) five percent (5%).

Annex #
Fiscal
Year
Tract/
APN
Development
Name
No. of
Taxable Units
Land Use
Category
Maximum
Special Tax
Subdivider
Original
2025-26
TR 31462-17, -19,
27 28 & 29
Fairway
Canyon 4C
366
Single Family
Property
$639
Meritage Homes
1 2025-26
TTM 38879
Baldwin
Ranch
10 Single Family
Property
$639
Penn St.

Development,
LLC
City of Beaumont Page 681 of 1155
Community Facilities District No. 2025-S (Public Services)

APPENDIX B

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-S (PUBLIC SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2025-S, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety.

These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay "Administrative Expenses" as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs of services as determined by the Administrator.

The above services shall be limited to those provided within the boundaries of CFD No. 2025-S for the benefit of the properties within the boundaries of CFD No. 2025-S and said services may be financed by proceeds of the special tax of CFD No. 2025-S only to the extent that they are in addition to those provided in the territory of CFD No. 2025-S before CFD No. 2025-S was created.

City of Beaumont Page 682 of 1155
Community Facilities District No. 2025-S (Public Services)

EXHIBIT D

ANNEXATION AND POTENTIAL ANNEXATION BOUNDARY MAPS

THIS MAP SHOWS THE BOUNDARIES OF AREAS TO BE ANNEXED
TO COMMUNITY FACILITIES DISTRICT NO. 2025-S (PUBLIC SERVICES)

OF THE CITY OF BEAUMONT, COUNTY OF RIVERSIDE, STATE
OF CALIFORNIA.

THE BOUNDARIES OF WHICH COMMUNITY FACILITIES DISTRICT

ARE SHOWN AND DESCRIBED ON THE MAP THEREOF WHICH
WAS PREVIOUSLY RECORDED ON 12TH DAY OF NOVEMBER, 2025,
IN BOOK 98 OF MAPS OF ASSESSMENT AND COMMUNITY
FACILITY DISTRICTS AT PAGE 11 AND AS INSTRUMENT NO.
2025-0354755 IN THE OFFICE OF THE COUNTY RECORDER
OF THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA.

I HEREBY CERTIFY THAT THE WITHIN MAP OR AREAS TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2025-S (SERVICES)

OF THE CITY OF BEAUMONT, COUNTY OF RIVERSIDE, STATE OF

CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL OF THE

CITY OF BEAUMONT AT A REGULAR MEETING THEREOF,
HELD ON DAY OF 20�
BY RESOLUTION NO.

CITY CLERK

CITY OF BEAUMONT
�\
ANNEXATION NO. 1
£ BEAUMONT r'
SPICER

CONSULTING GROUP
PROPOSED ANNEXATION MAP NO. 1
COMMUNITY FACILITIES DISTRICT NO. 2025-S
(PUBLIC SERVICES)

CITY OF BEAUMONT,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
Lu

MASSACHUSETTS
415-200-031

ELEVENTH ST
0 125 250
I I I
z
Y
U)
z
z
LU
O
500 Feet
w
LU
x
U
SHEET 1 OF 1 SHEET
RECORDED THIS DAY OF ,20 AT

THE HOUR OF O'CLOCK M IN BOOK

PAGE OF MAPS OF ASSESSMENT AND COMMUNITY

FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY

RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.

FEE: NO.:

PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY:

DEPUTY
LEGEND

CITY BOUNDARY

CFD BOUNDARY

PARCEL ONE

XXX-XXX-XXX ASSESSOR PARCEL NUMBER

THIS ANNEXATION MAP CORRECTLY SHOWS THE LOT OR PARCEL OF LAND

INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT

FOR DETAILS CONCERNING THE LINES AND DIMENSIONS OF LOTS OR PARCEL REFER TO THE COUNTY ASSESSOR MAPS FOR FISCAL YEAR 2025-26.

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED

BOUNDARIES OF THE POTENTIAL ANNEXATION AREA OF
COMMUNITY FACILITIES DISTRICT NO. 2025-S (PUBLIC SERVICES),

CITY OF BEAUMONT, COUNTY OF RIVERSIDE, STATE OF

CALIFORNIA, WAS APPROVED BY THE CITY OF BEAUMONT
AT A REGULAR MEETING THEREOF, HELD ON 4°`
DAY OF AJW. 20L5 BY RESOLUTION NO. 1UL5- ,5
CITY C

CITY OF BEAUMONT
nnnpn
LERK as

FILED IN THE OFFICE OF THE CITY CLERK,
CITY OF BEAUMONT, THIS '{'p DAY OF A.W. 20LS .

CITY CLERK
r

CITY OF BEAUMONT
SPICER

CONSULTING GROUP
W+E

BOUNDARIES - POTENTIAL ANNEXATION AREA
COMMUNITY FACILITIES DISTRICT NO. 2025-S
(PUBLIC SERVICES)

CITY OF BEAUMONT,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SHEET 1 OF 1 SHEET
RECORDED THIS la DAY OF n104244(0r 20AS AT
THE HOUR OF3:IS O'CLOCK EM IN BOOK 98
PAGE (a, OF MAPS OF ASSESSMENT AND COMMUNITY

FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY

RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.

FEE: 1,9 NO.: a0ei,.$-x354736

PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY:

DEPUTY
LEGEND

ANNEXATION BOUNDARY

NOT -A -PART

EXHIBIT E

PETITION

EXHIBIT E

PETITION TO THE CITY COUNCIL OF THE CITY OF BEAUMONT REQUESTING

ANNEXATION INTO A COMMUNITY FACILITIES DISTRICT OF PROPERTY WITHIN

THE CITY OF BEAUMONT AND A WAIVER WITH RESPECTS TO CERTAIN

PROCEDURAL MATTERS UNDER THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 AND CONSENTING TO THE LEVY OF SPECIAL TAXES THEREON TO

PAY THE COSTS OF SERVICES TO BE PROVIDED BY THE COMMUNITY

FACILITIES DISTRICT

1. The undersigned requests that the City Council of the City of Beaumont, initiate and conduct proceedings pursuant to the Mello -Roos Community Facilities Act of 1982 (the "Act") (Government Code Section 53311 et seq.), for the annexation into a Community Facilities District No. 2025-S (the "Community Facilities District") of the property described below and consents to the annual levy of special taxes on such property to pay the costs of services to be provided by the community facilities district.

2. The undersigned requests that the community facilities district provide any services that are permitted under the Act including, but not limited to, all necessary service, operations, administration and maintenance required to keep the landscape lighting, street lighting, traffic signals, flood control facilities, ground cover, shrubs, plants and trees, irrigation systems, graffiti removal, sidewalks and masonry walls, fencing entry monuments, tot lot equipment and associated appurtenant facilities within the district in a healthy, vigorous and satisfactory working condition.

3. The undersigned hereby certifies that as of the date indicated opposite its signature, it is the owner of all the property within the proposed boundaries of the Community Facilities District as described in Exhibit A hereto and as shown on the map Exhibit B hereto.

4. The undersigned requests that a special election be held under the Act to authorize the special taxes for the proposed community facilities district. The undersigned waives any requirement for the mailing of the ballot for the special election and expressly agrees that said election may be conducted by mailed or hand -delivered ballot to be returned as quickly as possible to the designated election official, being the office of the City Clerk and the undersigned request that the results of said election be canvassed and reported to the City Council at the same meeting of the City Council as the public hearing on the creation of the Community Facilities District or at the next available meeting.

5. Pursuant to Sections 53326(a) and 53327(b) of the Act, the undersigned expressly waives all applicable waiting periods for the election and waives the requirement for analysis and arguments relating to the special election, and consents to not having such materials provided to the landowner in the ballot packet, and expressly waives any requirements as to the form of the ballot. The undersigned expressly waives all notice requirements relating to hearings and special elections (except for published notices required by the Act), and whether such requirements are found in the California Elections Code, the California Government Code or other laws or procedures, including but not limited to any notice provided for by compliance with the provisions of Section 4101 of the California Elections Code. The undersigned expressly waives the word limit requirement for the ballots pursuant to Section 13247 and 9051 of the Election Code..

6. The undersigned hereby consents to and expressly waives any and all claims based on any irregularity, error, mistake or departure from the provisions of the Act or other laws of the State in the conduct of the election to annex into the Community Facilities District, and no step or action in any proceeding relative to the election to annex into the Community Facilities District of the portion of the incorporated area

of the City of Beaumont or the special election therein shall be invalidated or affected by any such irregularity, error mistake or departure.

IN WITNESS WHEREOF, I hereunto set my hand this day of , 20 [NAME OF LANDOWNER]
By:

Name:

Title:

OWNER'S PROPERTY:

TRACT MAP OR PARCEL MAP NO.
or PROJECT NO.

OWNER'S MAILING ADDRESS:

FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY COUNCIL OF THE CITY OF BEAUMONT THIS DAY OF , 20 .

City Clerk of the City Council of the
City of Beaumont

INSERT EXHIBIT A: BOUNDARY DESCRIPTION
Assessor's Parcel Number: 415-200-031

INSERT EXHIBIT B: TRACT/PARCEL/SUBDIVISION MAP

THIS MAP WAS PREPARED FOR ASSESSMENT PURPOSES ONLY NO LIABILITY

IS ASSUMED FOR THE ACCURACY OF THE DATA SHOWN ASSESSOR'S PARCEL

MAY NOT COMPLY WITH LOCAL LOT -SPLIT OR BUILDING SITE ORDINANCES DEC 0 5 2008
ASSESSOR'S MAP BK415 PG 20
Riverside County, Calif
80 N
80 'Underwood
0 120
-FOR. N 1/2 SE 1/4 SEC. 3 T3S R1W

PENNSYLVANIA AVE
TRA 000-200
0 200
OO
0 rn
OO
OO
0 MICHIGAN
80 m
r,
520 24
0 203 AC ML
0 AVE
MB ; 6'/ 1 16 17 S B Amended Map of the Town of Beaumont PM 226i/ ( 5 1 61 PARCEL MAP NO 34444
I-
0 1
0 m
80 80

41.5-20
15-24-6
W
1 "= 100'
Date
F Old Number [ New Number
5/1/1973
116,17
23 6/1/1979
€21
24-27
5/1/2004
113-15
28 5/2/2004
E28 2931
10/17/2008
€23 ;32,33
OCT 2008

EXHIBIT F

NOTICE OF PUBLIC HEARING

EXHIBIT F

NOTICE OF PUBLIC HEARING ON INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT 2025-S (PUBLIC SERVICES) (ANNEXATION NO. 1)
NOTICE IS HEREBY GIVEN that the City Council of the City of Beaumont on April 7, 2026 adopted its Resolution No. 2026- , in which it declared its intention to annex territory to existing Community Facilities District No. 2025-S (Public Services) (the "CFD No. 2025-S"), and to levy a special tax to pay for certain public safety services, all pursuant to the provisions of the Mello -Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax.

No change in the tax levied in the existing CFD No. 2025-S is proposed.

NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 7:00 p.m., or as soon thereafter as practicable, Tuesday, May 19, 2026 at 550 E. Sixth Street, Beaumont, California, as the time and place when and where the City Council will conduct a public hearing on the annexation of territory to CFD No. 2025-S. At the hearing, the testimony of all interested persons for or against the annexation of the territory or the levying of the special taxes will be heard. 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. A copy of the Agenda will be made available upon request to the Beaumont City Clerk's office at 951-572-3196.

DATED: , 20
City Clerk of the City of Beaumont

EXHIBIT G
BALLOT

EXHIBIT G

SPECIAL TAX ELECTION

CITY OF BEAUMONT

ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2025-S (PUBLIC SERVICES) ANNEXATION NO. 1
(May 19, 2026)
This ballot is for the use of the authorized representative of the following owner of land within Annexation No. 1 of the Community Facilities District No. 2025-S (Public Services) ("CFD No. 2025-S) of the City of Beaumont:

Name of Landowner
Penn St. Development, LLC
Number of Acres
Owned

2.03 Total Votes
3 According to the provisions of the Mello -Roos Community Facilities Act of 1982, and resolutions of the City Council (the "Council") of the City of Beaumont (the "City"), the above -named landowner is entitled to cast the number of votes shown above under the heading "Total Votes," representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to be annexed to the CFD No. 2025-S, City of Beaumont, County of Riverside, State of California. Please advise the City Clerk, at (951) 572-3196 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows:

Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail no later than May 5, 2026, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted.

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on May 19, 2026, at the Clerk's office at 550 E. Sixth Street, City of Beaumont, CA 92223.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on May 19, 2026.

Very truly yours,
Elaine Morgan, MMC,
City Clerk

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner:

Assessor's Parcel Number(s):

Penn St. Development, LLC
Attn: Dean Cook
PO Box 1137
Costa Mesa, CA 92628
415-200-031

ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2025-S (PUBLIC SERVICES) ANNEXATION NO. 1
AN "X" OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT PROPOSITION A: Shall the territory described in Attachment "A" of Resolution No. 2026-_ of the City Council of the City of Beaumont be annexed to Community Facilities District No. 2025-S of the City of Beaumont (Public Services)?
MARK "YES" OR "NO"
WITH AN "X":

YES
NO
PROPOSITION B: Shall a special tax with a rate and method of apportionment as provided in Attachment "B" to Resolution No. 2026 - of the City Council of the City of Beaumont be levied to pay for the Services and other purposes described in Resolution No. 2025-74? MARK "YES" OR "NO"
WITH AN "X":

YES
NO
Certification for Special Election Ballot
The undersigned is an authorized representative of the above -named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above -named landowner.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on , 20 .

Dean Cook
Manager
Signature
Print Name
Title

BEAUMONT
-C A L I F O R N A -
Staff Report
TO: Honorable Mayor and Members of the City Council
FROM: Kari Mendoza, Interim Deputy City Manager
BY: Leslie Pelayo, Management Analyst
DATE: April 7, 2026
SUBJECT: Beaumont Transit Comprehensive Operational Analysis (COA) Update Description: Provide an update on Beaumont on the Move, the City's Comprehensive Operational Analysis (COA) of Beaumont Transit.

Background and Analysis:

On September 2, 2025, City Council approved the award of a Professional Services Agreement to Transportation Management and Design, Inc. (TMD) to conduct a COA of Beaumont Transit.

The COA, branded as Beaumont on the Move, is a systemwide effort to evaluate existing transit service and identify opportunities to improve service efficiency, effectiveness, and the overall rider experience. The COA includes a Microtransit Feasibility Assessment and a Bus Stop Improvement Plan.

Work to date has focused on understanding existing conditions and gathering input from the community. This includes:
• A Market Assessment to understand demographic trends, land use, and travel patterns
• A Service Analysis to evaluate system performance and ridership trends • A comprehensive bus stop inventory to assess existing conditions, accessibility, and amenities
• Ongoing community engagement to gather input from riders and non -riders Several key findings have emerged from this phase of work:
• Ridership is growing, particularly for school trips and travel to key destinations • Transit is essential for current riders, especially students and those accessing major destinations, but the current service design limits broader use • Frequency and service hours are limited, which affects convenience and restricts when transit can be used

• Transit use is concentrated at specific times and locations, particularly around school schedules
• Feedback from riders and non -riders consistently identifies reliability, service hours, frequency, and travel time as key factors influencing transit use • Bus stop conditions highlight accessibility and amenity gaps across the system Next Steps:

The next phase of the COA will build on these findings and focus on developing and evaluating potential service improvements.

This will include:
• Developing draft service concepts that explore different approaches to improving reliability, access, and overall system performance
• Preparing a bus stop improvement plan informed by service changes • Evaluating the fare structure and identifying potential funding opportunities • Conducting additional community engagement to gather feedback on proposed concepts
These efforts will result in a set of service options for City Council to consider. Draft concepts and recommendations will be brought back to City Council for review and discussion prior to final adoption.

Fiscal Impact:

The estimated cost to prepare this staff report is $98.

Funding for this project is allocated under project account CIP T25-03, Comprehensive Operational Analysis, and is made up of Local Transportation Funds (LTF) and State Transit Assistance (STA) funds. Below is a summary of the project's funding sources and budget.

CIP T25-03 Comprehensive Operational Analysis Project Funding Summary
Estimated Total Project Budget= $400,000
Current Project Budget= $400,000
CIP T25-03 Comprehensive Operational Analysis Project Budget Summary Project
Component
Est. Total Current Paid to Remaining
Budget Budget Date Budget
Project Management
Preliminary Services
$400,000 $400,000 $(188,666) $211,334
Environmental
Design
Permits
Right -of -Way
Construction
4 J�
Construction Management
Equipment
Total
$400,000
$400,000
$(188,666)
$211,334
Recommended Action:

Receive and file.

Attachments:

A. Beaumont on the Move Presentation

Beaumont
nn the Move

BEAUMONT
BEAUM0NT *TRANSIT

Beaumont on the Move
• Beaumont on the Move is a 10 -
year _Plan to im_orove how -oeo_ole
get around our growing city on
_Public transit.
• The study will look at Beaumont
Transit's routes, schedules,
and bus stops to understand
what's working well, what could
be improved, and how we can
prepare for future growth.
• This effort will result in
clear, actionable

recommendations to guide
Fall 2025 Spring 2O26
ati—or input fronry ricers
and the community
Spring - Summer 2026
Review feedback and
develop draft ideas
Summer - Fall 2026
Share recommendations
and refine the plan
FaII - 1Vinter ?b
Present the plan to City
Council for adoption

i H W P U›
O CD O CD (-r
CD a 0) C O
O G N- CD hd N-
H- c --r H cn Fr
Fr H- o 'd o
CD rr O x
cn to 0) CI H -
Q1 hd (U) -r
cn I—' H-
Q_, c -r C
O LQ
V1
a
k<
squaLUaTE

Growing Population Creates Potential
Transit Demand
• The City of Beaumont
has experienced
substantial
population growth
over the past decade
• Beaumont' s growing
population will
generate more
potential transit
demand

44.% Population Growth 2013 to 2023

CITY OF BEAUMONT POPULATION
60,000
50,000
30,0x0
20,000
10,000
54,817
•1-0•w°•
wool -
32,847 406111
.��•

Beaumont Transit Overview
• 2 Weekday Local 3us Routes
• 3 Weekday Peak Service Bus
Routes
• 1 Hy=brid Local/Express
Service - Casino Express
• 2 Commuter Link Exoress
Routes
• 2 Routes 0_oerating on
Saturday
• ADA Paratransit Service
San Tinwren ( jo Rd
9 Casino Express
▪ ROUTE 3/4
▪ ROUTE 3
▪ ROUTE 9

Amara..,
9 ROUTE 4
9 ROUTE 7-1 I
6}, ROUTE 7-2 I
' Commuter Link 120
Q Commuter Link 125

Limited Frequency and Service Hours
Weekday
Route 3
Route 4
Commuter Link 120
Commuter Link 125
Casino Express
Route 7-1
Route 7-2
Route 9
Saturday
Route 3/4
Commuter Link 120
5AM 6AM 7AM
8AM 9AM 10 AM 11 AM 12 PM
1 PM
2 PM 3 PM
4 PM 5 PM 6 PM
60 60
60 60
60 60
60 60
60 60
60 60
60 60
60 60
60 60
60 60
60 60
60 60
30 60
60 60
60 I
'
60 60
60 60
60 60
60 60
60 60
60 60
60 60
60 j
60 60
g 60
60 60
60 60
60 60
40 60
60 •
9AM
ur
•
11 AM
12 PM
1PM
•
2PM
40 40
4PM
5PM
I
6PM
60 6AM
60 7AM
8AM
10 AM
;1 .

I 60
3PM
`'age
705 of 1155
60 Ridership has Steadily Grown Over the
Last 4 Years
Mr -
Ridership is up 33%
since Fiscal Year
2022
Ridershi
o is highest
curing the school
year.

October ridershi-o is
Annual Boardings
140,000
120,000
100,000
80,000
60,000
40,000
20,000
14,000
12,000
10,000
csi
8,000
0 6,000
4,000
2,000
2024
2025
2020 2021 2022 2023
Fiscal Year
i
3x higher than July

5eQ
OG�o� oS Oe6,
Jai as
Sao ‹;c6
PQo 4aa �J°�

Ridership is Concentrated at Key
Destinations
San Bernardino & Redlands
San Bernardino
Transit Center

SENECA SPRINGS PK
Weekday Boardings by Stop
Sum of Ono
a
O 10
Om
010O
— Route Network
Service Area Boundary
Casino
0 as i Mile pam707 of 1155
San Bernardino & Redlands

OAS VALIEC PKM,
Saturday Baardings by Stop
Sum of One
• 1
• 10
5O
• 1O0
— Route Network
1, Service Area Boundary
Casino

SENECA SPRINGS PKWY
0 0.5 1 Mile .

TMD

Peak -Only Routes Drive Ridership
X100
`D 90
N
U- 80
I 70
CL
C 60
73 50
›, 40
0 30
a 20
cp 10
Q 0
3 Most boardings
/-----come from peak -
only service
4 7-1 9 7-2
Route
Saturday
ridership is
lower than. ---
weekday
ridership
1 ■
■
•
120 Casino 125 3/4
• Weekday FY 2025
Saturday FY 2025

Weekday Ridership Aligns with School
Bell Times
140
120
100
0)
0 80
m
0 & 60
L
40 20
0 12 Fpoge,7pgof 1) j1
i
1 I
• Avg Daily Ridership Weekday
Avg Daily Ridership Saturday
5 AM 6 AM 7 AM 8 AM 9 AM 10 AM 11 AM
3PM 4PM 5PM 6PM 7PM

School & Shopping Are Key Drivers of
Overall Travel Demand

TRIPS BY TIME OF DAY
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
• Weekday Weekend
• ■
12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11

AM AM AM AM AM AM AM AM AM AM AM AM PM PM PM PM PM PM PM PM PM PM PM PM

TRIPS BY TRIP PURPOSE
60,000
50,000
40,000
30,000
20,000
10,000
■ Weekday Weekend
1 Dining Other
I
Low work
trips due to
70% of work
trips leave
e City
■
Recreation School Shopping & Social Work
Errands

Data source: Replica (2025)

Who Rides Beaumont Transit
58% of
riders are
students and
56% are under
• To the age
of 18.
{jam
II ��
59% of riders
say they could
not make their
trip without
Beaumont Transit.
49% of riders have a
household income of less
than $35,000.

Less than $7,5OO
$7,5OO - $14,999
$15,OOO - $24,999
$25,OO0 - $34,999
$35,OOO - $49,999
$50,O0O - $74,999
$75,0OO or more

15.9%

13.5%

8.6%

11.3%
1O.9%
1O.2%

29.6%

Data source: On -board survey (Fall 2025)

Rider Priorities and Satisfaction
• Top Priorities for
Improvement:
• On -Time Performance
• Hours of 0_oeration
• Bus Sto_c Amenities.
• Riders Are Most Satisfied
With:•
• Cost of Ridinc
• Ease of Paying Fares
• Arrival Time Info
• Safety
Needs Improvement
Satisfied
Average Score (5 = Highest, 1 = Lowest
5 4.5
4 3.5
3 2.5
2 1.5
1 0.5
0 e • o ee e"
ce 81/4
Jo , ` ale 9
.04
Q of aoQ ecG
0 boo q Q�eQ
•.r
e'�ec �„oe `ceyh `c yo yk59 y,,oQ o�ea ``�,m �oo�`' �acm `�eo. c ye ecC Fe 81/44 i° ,1
goy ey �`4 A� `. okra
e�eca G`e .°1 eo` �o Qom, e�, rce o�`4s Goyim
0 P�� S O`ya9c O° 4eo eye
• Importance • Satisfaction

Data source: On -board survey (Fall 2025)

Community (Non -Ric
Responses
.er) Survey - Top
"Why Don't You Use
Beaumont Transit?"

1. I -orefer to drive a
car

2. Riding the bus takes
too long

3. Buses do not come
frequently enough

4. It takes too many
transfers to get where
I want to go

5. The bus does not run 4. Running more routes with
when I need it to
Page713of1155buses every 30 minutes
"What Improvements Would
Make You More Likely to Use
Beaumont Transit?"

1. Making it easier to pay
with a credit care- or
phone

2. Keeping fares low for
youth, seniors, people
with disabilities, and
veterans

3. Adding more
riders need
transfers
routes so
fewer

Community Voices Are Shaping the Plan
Pop-up Events'
• Stuff The Bus (12/13)
* Blizzard Bash (12/13)
• Pass Area Veterans Expo
(1/24)
• Walmart Bus Stop (2/4)
* Beaumont High School
Bus Stoo (2/12)
Community Meetings:
* In -Person Open House
(2/25)
• Vi rtiial MPPtI Y1f7 /7 /7h1

What We Heard from the Community
• Exoand service coverage
and connectivity to new
places.
• Address gaps in service
span (weekends) .
• Improve safety, comfort,
and bus stop amenities.
* Increase transit education
with clear information and
outreach.

YOUR RIDE, YOUR VOICE! ITU VIAJE, TU VOZ! I
What are your top priorities for improving transit in your community? i_Cua es son sus principales prioridades para mejorar eL transporte en su comunidad? kits,
Ao
€mail: COAE)bedumontca.gov
aka
a�.nr„ Medan*: beatimontontheiTiove.c
Alho.
•
REAUMO

TRANSIT
* Increase accessi
_oility

Most Bus Stops Lack Basic Amenities
and Accessibility
• 129 stops in revenue service
• 26 have a bench
• 23 have a shelter
• 96 stops are inaccessible
• 62 have boarding areas that are
too small
• 16 have no sidewalk or -caved
boarding area
• 17 have no connection between
sidewalk and street
• 1 stop has a boarding area
that's too s tee_O Page 716 of 1155

SENECA SPRINGS PK V
Beaumont Bus Stops
Without Amenities
• ADA Inaccessible
• ADA Accessible
With Amenities
Bench
;1=i Bench & Shelter
— Route Network
i _ J Service Area Boundary
t l

PROOKSIDEAVE N BADOKSIDEAVE
0 0.5 1 Mile .

TMD

What's next for Beaumont on the Move?
Based on what we heard from our community, draft
alternatives could explore:
• Developing strategies to improve reliability and on -time performance • Strengthening service access
• Coordinating with Beaumont Unified to better serve students including early release days
• Improving service access on weekends
• Enhancing bus stop placement and amenities across the network • Rethinking how we deliver service
• Evaluating the right mix of fixed -route service and demand -response microtransit service
• Examining fare structures which support ridership growth and improve financial performance
• Preparing for Beaumont Transit's future
• Exploring opportunities to grow service
• Assure long term financial sustainability

Next Steps
• Develop draft service
concepts based on
survey feedback, market
evaluation, and service
evaluation
• Develop an improvement
-clan and amenity
distribution policy for
bus stops
• Evaluate fare structure
and identify funding
opportunities
• Obtain feedback from
the community and
refine the plan

Fall 2025 - Spring 2O26
Gather input from riders
and the community
Spring - Summer 2026
Review feedback and
develop draft ideas
Summer - Faii 2026
Share recommendations
and refire the plan
Fall - Winter 2026
Present the plan to City
Council for adoption.

BEAUMONT
-C A L I F O R N A -
Staff Report
TO: Honorable Mayor and Members of the City Council
FROM: Lisa Leach, CPA, Interim Finance Director
DATE: April 7, 2026
SUBJECT: Contract for Investment Advisor and Portfolio Management Services Description: Approval of a five-year contract with Chandler Asset Management, Inc. for investment advisory and portfolio management services.

Background and Analysis:

The City maintains an investment portfolio intended to safeguard public funds, ensure liquidity for operational needs, and achieve a reasonable return in accordance with the City's Investment Policy and California Government Code. The City's current investment advisors contract expires on July 17, 2026, creating the need to secure continued advisory and portfolio management services without interruption.

To ensure a smooth transition and maintain compliance with best practices, staff initiated a competitive Request for Proposals (RFP) process. On December 1, 2025, the City issued an RFP for Investment Advisory and Portfolio Management Services. The RFP was publicly posted on the City's website and Planet Bids. The City received ten (10) proposals from the following firms:
• Academy Asset Management
• Chandler Asset Management
• Garcia Hamilton & Associates, L.P.
• Government Portfolio Advisors
• Insight Investment
• Meeder Public Funds
• Optimized Investment Partners
• PTMA Financial Solutions
• RBC Global Asset Management
• PFM Asset Management
A staff evaluation committee consisting of representatives from the Finance Department and Administrative Services Department reviewed the proposals based on the following criteria:

• Ability to meet service requirements, understanding the needs and requirements of the City, scope and services offered.
• Experience, qualifications and knowledge of key personnel; references for similar work completed with the last three years.
• Proposed pricing.
• Completeness of responses to the Request for Proposal.

The RFP evaluations were graded, and two (2) Investment Advisory Firms were selected for formal presentations.

On February 18, 2026, the Finance and Audit RFP subcommittee members, Dennis Garcia and Ricardo Forbes, along with the Finance Director and Assistant Finance Director, evaluated the presentations. After a comprehensive review, staff determined that Chandler Asset Management, Inc. best meets the City's needs. Key strengths include:
• Extensive experience managing municipal portfolios of similar size and complexity.
• Strong compliance framework aligned with California Government Code and local investment policies.
• Competitive fee structure with transparent pricing.
• A demonstrated track record of conservative, safety -first investment strategies. • Dedicated advisory team with Certified Financial Planner (CFP), Chartered Financial Analyst (CFA), or similar credentials.

Scope of Services
The selected firm will provide:
• Ongoing portfolio management and investment recommendations. • Monitoring of market conditions and economic trends.
• Trade execution in accordance with the City's Investment Policy. • Monthly and quarterly performance reporting.
• Annual policy review and recommended updates.
• Compliance monitoring and audit support.
• Staff training and Council presentations as needed.

A contract has been negotiated for Investment Advisor and Portfolio Management Services with a five-year term and options for two additional one-year extensions (Refer to Attachment A). Beaumont Municipal Code (BMC) Chapter 3.02.070 allows for professional services contracts to be awarded for a maximum of five (5) years, with two

(2) one-year renewals, subject to Council approval. The proposed contract includes the RFP issued by the City and the proposal submitted by Chandler Asset Management.

Fiscal Impact:

The contract amount for the five-year period is not to exceed $350,000 and will be netted and paid by the earnings from investments.

The cost to prepare this staff report is $350.

Recommended Action:

Approve a five-year contract with Chandler Asset Management, Inc. to perform investment advisor and portfolio management services with options for two one-year extensions.

Attachments:

A. Contract for Chandler Asset Management, Inc.

B. RFP for Investment Advisor and Portfolio Management Services C. Proposal from Chandler Asset Management, Inc.

Contract No. C26-16

PROFESSIONAL SERVICES AGREEMENT FOR INVESTMENT ADVISORY SERVICES WITH CHANDLER ASSET MANAGEMENT, INC.

THIS AGREEMENT FOR PROFESSIONAL SERVICES BY INDEPENDENT CONTRACTOR ("Agreement") is made and effective as of by and between the CITY OF BEAUMONT, a California municipal corporation ("City") whose address is 550 E. 6th Street, Beaumont, California 92223, and Chandler Asset Management, Inc., a California Corporation whose address is 9255 Towne Centre Drive, Suite 600, San Diego, CA 92121 ("Contractor"). City and Contractor are sometimes hereinafter individually referred to as "party" and hereinafter collectively referred to as the "parties."

RECITALS
This Agreement is entered into on the basis of the following facts, understandings and intentions of the parties to this Agreement:

A. City desires to engage Contractor to provide the following services: Investment Advisory Services; and
B. Contractor has made a proposal ("Proposal") to the City to provide such professional services, which Proposal is attached hereto as Exhibit "A" and incorporated herein by this reference; and
C. Contractor agrees to provide such services pursuant to, and in accordance with, the terms and conditions of this Agreement, and represents and warrants to City that Contractor possesses the necessary skills, licenses, certifications, qualifications, personnel and equipment to provide such services.

AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals and mutual covenants contained herein, City and Contractor agree as follows:

1. Term of Agreement. This Agreement is effective as of the date first above written and shall continue until terminated as provided for herein. Notwithstanding anything in this Agreement to the contrary, this Agreement shall automatically terminate after April 30, 2029 ("the Initial Term") with two (2) one-year renewal options unless extended by the parties with the approval of the City Council of the City.

Contract No. C26-16

2. Services to be Performed. Contractor agrees to provide the services ("Services") as follows: Investment Advisory Services in accordance with Exhibit "A". All Services shall be performed in the manner and according to the timeframe set forth in the Proposal. Contractor designates Mia Corral Brown, Regional Director, as Contractor's Representative responsible for overseeing the Services provided by Contractor ("Contractor's Representative"). City designates the City Manager, or his or her designee, to act as the Project Manager ("Project Manager") in connection with the delivery of Services under this Agreement. Contractor shall supply, at its sole expense, all equipment, tools, materials, and supplies necessary to perform Services. In the event that the Proposal contains terms that are in addition to or in conflict with this Agreement, other than the price for Services, such terms shall not be valid and shall be of no force or effect.

3. Associates and Subcontractors. Contractor may, at Contractor's sole cost and expense, employ such competent and qualified independent associates, subcontractors and consultants as Contractor deems necessary to perform the Services; provided, however, that Contractor shall not subcontract any of the Services without the prior written consent of City.

4. Compensation.

4.01 Contractor shall be paid at the rates set forth in the Exhibit "A" and shall not increase any rate without the prior written consent of the City. Notwithstanding anything in this Agreement to the contrary, total fees and charges paid by City to Contractor during the Initial Term under this Agreement shall not exceed the amount of three -hundred and fifty thousand Dollars and Zero Cents ($350,000).

4.02 Contractor shall not be compensated for any Services rendered nor reimbursed for any expenses incurred in excess of those authorized unless approved in advance by the City, in writing.

4.03 Contractor shall submit to City, on or before the fifteenth (15th) of each month, itemized invoices for the Services rendered in the previous month. The City shall not be obligated to pay any invoice that is submitted more than sixty (60) days after the due date of such invoice. City shall have the right to review and audit all invoices prior to or after payment to Contractor. This review and audit may include, but not be limited to City's:
a. Determination that any hourly fee charged is consistent with this Agreement's approved hourly rate schedule;
b. Verification that the hours billed, when multiplied by the approved hourly rates, result in the correct total;

Contract No. C26-16
c. Determination that each item charged is the usual, customary, and reasonable charge for the particular item. If City determines an item charged is greater than usual, customary, or reasonable, or is duplicative, ambiguous, excessive, or inappropriate, City shall either return the bill to Contractor with a request for explanation or adjust the payment accordingly and give notice to Contractor of the adjustment.

4.04 If the work is satisfactorily completed, City shall pay such invoice as stated in Exhibit "A." Should City dispute any portion of any invoice, City shall pay the undisputed portion within the time stated above, and at the same time advise Contractor in writing of the disputed portion.

5. Obligations of Contractor.

5.01 Contractor agrees to perform all Services in accordance with the terms and conditions of this Agreement and the Proposal. In the event that the terms of the Proposal shall conflict with the terms of this Agreement or contain additional terms that purport to bind the City other than the Services to be rendered and the hourly rate for the Services, the terms of this Agreement shall govern and said additional or conflicting terms shall be of no force or effect.

5.02 Except as otherwise agreed by the parties, Contractor will supply all personnel, materials and equipment required to perform the Services. Contractor shall provide its own offices, telephones, vehicles and computers. Contractor will determine the method, details, and means of performing the Services under this Agreement.

5.03 Contractor shall keep City informed as to the progress of the Services by means of regular and frequent consultations. Additionally, when requested by City, Contractor shall prepare written status reports.

5.04 Contractor is responsible for paying, when due, all income and other taxes, fees, and withholding, including withholding state and federal taxes, social security, unemployment and worker's compensation, incurred as a result of the compensation paid under this Agreement. Contractor agrees to indemnify, defend, and hold harmless City for any claims, costs, losses, fees, penalties, interest, or damages suffered by City resulting from Contractor's failure to comply with this provision.

5.05 In the event Contractor is required to prepare plans, drawings, specifications and/or estimates, the same shall be furnished in conformance with local, state and federal laws, rules and regulations.

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5.06 Contractor represents that it possesses all required licenses necessary or applicable to the performance of Services under this Agreement and the Proposal and shall obtain and keep in full force and effect all permits and approvals required to perform the Services herein.

In the event City is required to obtain an approval or permit from another governmental entity, Contractor shall provide all necessary supporting documents to be filed with such entity.

5.07 Contractor shall be solely responsible for obtaining Employment Eligibility Verification information from Contractor's employees, in compliance with the Immigration Reform and Control Act of 1986, Pub. L. 99-603 (8 U.S.C. 1324a), and shall ensure that Contractor's employees are eligible to work in the United States.

5.08 In the event that Contractor employs, contracts with, or otherwise utilizes any Ca1PERS retirees in completing any of the Services performed hereunder, such instances shall be disclosed in advance to the City and shall be subject to the City's advance written approval.

5.09 Drug -free Workplace Certification. By signing this Agreement, the Contractor hereby certifies under penalty of perjury under the laws of the State of California that the Contractor will comply with the requirements of the Drug -Free Workplace Act of 1990 (Government Code, Section 8350 et seq.) and will provide a drug -free workplace.

5.10 Contractor shall comply with all applicable local, state and federal laws, rules, regulations, entitlements and/or permits applicable to, or governing the Services authorized hereunder including, but not limited to California Department of Industrial Relations (Cal/OSHA) regulations; and the U.S. Department of Transportation Omnibus Transportation Employee Testing Act, related to their scope of work and operations. In case of conflict, the most stringent shall apply.

5.11 Contractor shall keep itself informed concerning and shall render all Services hereunder in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any federal, state or local governmental entity having jurisdiction in effect at the time service is rendered.

5.12 By executing this Agreement, Contractor warrants that Contractor (i) has thoroughly investigated and considered the scope of Services to be performed, (ii) has carefully considered how the Services should be performed, and (iii) fully understands the conditions, circumstances, difficulties and restrictions attending performance of the Services under this Agreement. If the Services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of Services hereunder. Should the Contractor discover any latent or unknown conditions, which will materially affect the performance of the Services hereunder, Contractor

Contract No. C26-16
shall immediately inform the City of such facts and shall not proceed except at Contractor's sole risk until written instructions are received from the Project Manager.

Contractor warrants all Services under the Agreement to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the Services, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the Services or non-conformance of the Services to the Agreement, commence and prosecute with due diligence all Services necessary to fulfill the terms of the warranty at Contractor's sole cost and expense. Contractor shall act sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the Services (or work of other contractors) damaged by Contractor's defective Services or which becomes damaged in the course of repairing or replacing defective Services. For any Services so corrected, Contractor's obligation hereunder to correct defective Services shall be reinstated for an additional one-year period, commencing with the date of acceptance of such corrected Services. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of Contractor.

In the event that Contractor fails to fulfil its obligations under this Section, or under any other warranty or guaranty under this Agreement, to the satisfaction of the City, the City shall have the right to correct and replace any defective or non -conforming Services and any work damaged by such services or the replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand.

Payment to Contractor for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Contractor.

5.13 Time is of the essence in the performance of this Agreement.

6. Insurance. Contractor hereby agrees to be solely responsible for the health and safety of its employees and agents in performing the Services under this Agreement and shall comply with all laws applicable to worker safety including but not limited to Cal -OSHA.

Therefore, throughout the duration of this Agreement, Contractor hereby covenants and agrees to maintain insurance in conformance with the requirements set forth below. Attached hereto as Exhibit "B" are copies of Certificates of Insurance and endorsements as required by Section 7.02.

If existing coverage does not meet the requirements set forth herein, Contractor agrees to amend, supplement or endorse the existing coverage to do so. Contractor shall provide the following types and amounts of insurance:

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6.01 Commercial general liability insurance in an amount of not less than $2,000,000 per occurrence and $4,000,000 in the aggregate; Contractor agrees to have its insurer endorse the general liability coverage required herein to include as additional insured's City, its officials, employees and agents. Contractor also agrees to require all contractors and subcontractors to provide the same coverage required under this Section 6.

6.02 Business Auto Coverage in an amount no less than $1 million per accident.

If Contractor or Contractor's employees will use personal autos in performance of the Services hereunder, Contractor shall provide evidence of personal auto liability coverage for each such person.

6.03 Workers' Compensation insurance for any of Contractor's employees that will be providing any Services hereunder. Contractor will have a state -approved policy form providing statutory benefits as required by California law. The provisions of any Workers' Compensation insurance will not limit the obligations of Contractor under this Agreement.

Contractor expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. Sole proprietors with no employees, LLCs, or partnerships using the services of members or partners who do not carry Workers' Compensation insurance acknowledge that they are not subject to the Workers' Compensation Act of the State of California and agree to complete a signed workers compensation exemption form.

6.04 Professional Liability insurance in a minimum amount of $2 million per occurrence to cover any negligent acts or omissions committed by Contractor, its employees and/or agents in the performance of any Services for City.

6.06 If Claims Made Policies (applies only to professional liability and cyber liability policies):
i. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.
ii. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. iii. If coverage is canceled or non -renewed and not replaced with another claims -made policy form with a Retroactive Date prior to the contract effective date, the Contractor must purchase "extended reporting" coverage for a minimum of five (5) years after completion of the contract work.

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7. General Conditions pertaining to Insurance Coverage.

7.01 No liability insurance coverage provided shall prohibit Contractor from waiving the right of subrogation prior to a loss. Contractor waives all rights of subrogation against City regardless of the applicability of insurance proceeds and shall require all contractors and subcontractors to do the same.

7.02 Prior to beginning the Services under this Agreement, Contractor shall furnish City with certificates of insurance, endorsements, and upon request, complete copies of all policies, including complete copies of all endorsements. All copies of policies and endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf.

7.03 All required policies shall be issued by a highly rated insurer with a minimum A.M. Best rating of "A: VII". The insurer(s) shall be admitted and licensed to do business in California. The certificates of insurance hereunder shall state that coverage shall not be suspended, voided, canceled by either party, or reduced in coverage or in limits, except after thirty (30) days' prior written notice has been given to CITY.

7.04 Self-insurance does not comply with these insurance specifications.

Contractor acknowledges and agrees that that all insurance coverage required to be provided by Contractor or any subcontractor, shall apply first and on a primary, non-contributing basis in relation to any other insurance, indemnity or self-insurance available to City.

7.05 All coverage types and limits required are subject to approval, modification and additional requirements by City, as the need arises. Contractor shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection without City's prior written consent.

7.06 Contractor agrees to provide immediate notice to City of any claim or loss against Contractor or arising out of the Services performed under this Agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City.

7.07 The coverage shall contain no special limitations on the scope of protection afforded to City, its directors, officers, employees, or authorized volunteers. If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

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8. Indemnification.

8.01 Contractor and City agree that City, its employees, agents and officials should, to the extent permitted by law, be fully protected from any loss, injury, damage, claim, lawsuit, cost, expense, attorneys' fees, litigation costs, defense costs, court costs or any other costs arising out of or in any way related to the performance of this Agreement by Contractor or any subcontractor or agent of either as set forth herein. Accordingly, the provisions of this indemnity are intended by the parties to be interpreted and construed to provide the fullest protection possible under the law to City. Contractor acknowledges that City would not enter into this Agreement in the absence of the commitment of Contractor to defend, indemnify, and protect City as set forth herein.
a. To the fullest extent permitted by law, Contractor shall defend, indemnify and hold harmless City, its employees, agents and officials, from and against any liability, claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, injuries, expenses, damages or costs of any kind, whether actual, alleged or threatened, actual attorneys' fees incurred by City, court costs, interest, defense costs, including expert witness fees and any other costs or expenses of any kind whatsoever without restriction or limitation incurred in relation to, as a consequence of or arising out of, or in any way attributable actually, allegedly or impliedly, in whole or in part to the performance of this Agreement.

Contractor's obligation to defend, indemnify, and hold harmless shall include any and all claims, suits, and proceedings in which Contractor (and/or Contractor's agents and/or employees) is alleged to be an employee of City. All obligations under this provision are to be paid by Contractor as they are incurred by City.
b. Without affecting the rights of City under any provision of this Agreement or this Section, Contractor shall not be required to indemnify and hold harmless City as set forth above for liability attributable solely to the fault of City, provided such fault is determined by agreement between the parties or the findings of a court of competent jurisdiction. 8A Indemnification Design Professionals. In the event that Contractor is a design professional under California Civil Code Section 2782.8 this Section 8A shall apply instead of Section 8. To the fullest extent permitted by California law and in accordance with California Civil Code section 2782.8, Contractor shall defend, indemnify, and hold harmless the City, its officers, employees, trustees and members ("Indemnified Parties") from any and all actions, assessments, counts, citations, claims, costs, damages, demands, judgments, liabilities (legal, administrative or otherwise), losses, notices, expenses, fines, penalties, proceedings, responsibilities, violations, attorney's and consultants' fees and causes of action including, but not limited to those for, injury to property or persons, including personal injury and/or death ("Claim(s)"), to the extent that the Claim(s) arises out of, pertains to, or relates to the negligence, recklessness, or willful misconduct

Contract No. C26-16
of Contractor, its directors, officials, officers, employees and consultants arising out of, connected with, or resulting from the performance of the Services, the Project, or this Agreement. This indemnity excludes liability caused by the negligence or willful misconduct of any of the Indemnified Parties. The cost to indemnify, hold harmless, and defend charged to Contractor shall not exceed Contractor's proportionate percentage of fault.

9. Additional Services, Changes and Deletions.

9.01. In the event Contractor performs additional or different services than those described herein without the prior written approval of the City Manager and/or City Council of City, Contractor shall not be compensated for such services. Contractor expressly waives any right to be compensated for services and materials not covered by the scope of this Agreement or authorized by the City in writing.

9.02 Contractor shall promptly advise the City Manager and Finance Director of City as soon as reasonably practicable upon gaining knowledge of a condition, event or accumulation of events which may affect the scope and/or cost of Services. All proposed changes, modifications, deletions and/or requests for additional services shall be reduced to writing for review and approval by the City and/or City Council.

10. Termination of Agreement.

10.01. Notwithstanding any other provision of this Agreement, City, at its sole option, may terminate this Agreement with or without cause, or for no cause, at any time by giving twenty (20) days' written notice to Contractor.

10.02 In the event of termination, the payment of monies due Contractor for undisputed Services performed prior to the effective date of such termination shall be paid within thirty (30) business days after receipt of an invoice as provided in this Agreement. Immediately upon termination, Contractor agrees to promptly provide and deliver to City all original documents, reports, studies, plans, specifications and the like which are in the possession or control of Contractor and pertain to City.

11. Status of Contractor.

11.01 Contractor shall perform the Services in Contractor's own way as an independent contractor, and in pursuit of Contractor's independent calling, and not as an employee of City. However, Contractor shall regularly confer with City's City Manager or Project Manager as provided for in this Agreement.

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11.02 Contractor agrees that it is not entitled to the rights and benefits afforded to City's employees, including disability or unemployment insurance, Workers' Compensation, retirement, Ca1PERS, medical insurance, sick leave, or any other employment benefit. Contractor is responsible for providing, at its own expense, disability, unemployment, Workers' Compensation and other insurance, training, permits, and licenses for itself and its employees and subcontractors.

11.03 Contractor hereby specifically represents and warrants to City that it possesses the qualifications and skills necessary to perform the Services under this Agreement in a competent, professional manner, without the advice or direction of City and that the Services to be rendered pursuant to this Agreement shall be performed in accordance with the standards customarily applicable to an experienced and competent professional rendering the same or similar services in the same geographic area where the City is located. Further, Contractor represents and warrants that the individual signing this Agreement on behalf of Contractor has the full authority to bind Contractor to this Agreement.

12. Ownership of Documents; Audit.

12.01 All draft and final reports, plans, drawings, studies, maps, photographs, specifications, data, notes, manuals, warranties, and all other documents of any kind or nature prepared, developed, or obtained by Contractor in connection with the performance of Services performed for the City shall become the sole property of City, and Contractor shall promptly deliver all such materials to City upon request. At the City's sole discretion, Contractor may be permitted to retain original documents, and furnish reproductions to City upon request, at no cost to City.

12.02 Subject to applicable federal and state laws, rules and regulations, City shall hold all intellectual property rights to any materials developed pursuant to this Agreement.

Contractor shall not use such data or documents for purposes other than the performance of this Agreement, nor shall Contractor release, reproduce, distribute, publish, adapt for future use or any other purposes, or otherwise use, any data or other materials first produced in the performance of this Agreement, nor authorize others to do so, without the prior written consent of City.

12.03 Contractor shall retain and maintain, for a period not less than four years following termination of this Agreement, all-time records, accounting records and vouchers and all other records with respect to all matters concerning Services performed, compensation paid and expenses reimbursed. At any time during normal business hours and as often as City may deem necessary, Contractor shall make available to City's agents for examination all of such records and shall permit City's agents to audit, examine and reproduce such records.

13. Miscellaneous Provisions.

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13.01 This Agreement, which includes all attached exhibits, supersedes any and all previous agreements, either oral or written, between the parties hereto with respect to the rendering of Services by Contractor for City and contains all of the covenants and agreements between the parties with respect to the rendering of such Services in any manner whatsoever. Any modification of this Agreement will be effective only if it is in writing signed by both parties.

13.02 Contractor shall not assign or otherwise transfer any rights or interest in this Agreement without the prior written consent of City. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under this Agreement.

13.03 Contractor shall timely file FPPC Form 700 Conflict of Interest Statements with City if required by California law and/or the City's conflict of interest policy.

13.04 If any legal action or proceeding, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorneys' fees and costs, in addition to any other relief to which that party may be entitled.

13.05 This Agreement is made, entered into and shall be performed in the City of Riverside in the State of California and shall in all respects be interpreted, enforced and governed under the laws of the State of California. The parties agree that venue in any litigation between them shall be in Riverside City, California.

13.06 Contractor covenants that neither it nor any officer or principal of its firm has any interest, nor shall they acquire any interest, either directly or indirectly, which will conflict in any manner or degree with the performance of their Services hereunder. Contractor further covenants that in the performance of this Agreement, no person having such interest shall be employed by it as an officer, employee, agent, or subcontractor.

13.07 Contractor has read and is aware of the provisions of Section 1090 et seq. and Section 87100 et seq. of the Government Code relating to conflicts of interest of public officers and employees. Contractor agrees that they are unaware of any financial or economic interest of any public officer or employee of the City relating to this Agreement. It is further understood and agreed that if such a financial interest does exist at the inception of this Agreement, the City may immediately terminate this Agreement by giving notice thereof. Contractor shall comply with the requirements of Government Code section 87100 et seq. and section 1090 in the performance of and during the term of this Agreement.

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13.08 Improper Consideration. Contractor shall not offer (either directly or through an intermediary) any improper consideration such as, but not limited to, cash, discounts, services, the provision of travel or entertainment, or any items of value to any officer, employee or agent of the City in an attempt to secure favorable treatment regarding this Agreement or any contract awarded by City. The City, by notice, may immediately terminate this Agreement if it determines that any improper consideration as described in the preceding sentence was offered to any officer, employee or agent of the City with respect to the proposal and award process of this Agreement or any City contract. This prohibition shall apply to any amendment, extension or evaluation process once this Agreement or any City contract has been awarded. Contractor shall immediately report any attempt by any City officer, employee or agent to solicit (either directly or through an intermediary) improper consideration from Contractor.

13.09 Severability. If any portion, section, sentence, provision or paragraph of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the entire balance of this Agreement not so affected shall remain in full force and effect.

13.10 Prevailing Wages. Contractor shall be responsible to comply with applicable prevailing wages laws. As a condition of payment, if applicable Contractor shall show proof of payment of wages under applicable state and federal laws and regulations relating to prevailing wages in accordance with the "General Wage Determination Made By the Director of Industrial Relations Pursuant To California Labor Code, Part 7, Chapter 1, Article 2, Sections 1770, 1773 and 1773.1", for Riverside City and/or 40 U.S.C. Section 276a, et. seq. Such wage rates shall conform with those posted at City offices and the project site. In the event that the Contractor fails to pay the prevailing wages, the Contractor shall be solely liable for penalties and for the shortfall in wages and shall indemnify, defend and hold harmless City under Section 8.01 against any of the same. The following Labor Code sections are hereby referenced and made a part of this Agreement:

1. Section 1775 - Penalty for Failure to Comply with Prevailing Wage Rates.

2. Section 1777.4 - Apprenticeship Requirements.

3. Section 1777.5 - Apprenticeship Requirements.

4. Section 1813 - Penalty for Failure to Pay Overtime.

5. Sections 1810 and 1811 - Working Hour Restrictions.

6. Section 1776 - Payroll Records.

7. Section 1773.8 - Travel and Subsistence Pay.

13.11 Covenant Against Discrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race,

Contract No. C26-16
color, creed, religion, sex, marital status, national origin, or ancestry in the performance of this Agreement. Contractor shall take affirmative action to ensure that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry.

13.12 Waiver. Waiver by any party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant.

Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or Services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non -defaulting party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

13.13 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.

13.14 Legal Action. In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purpose of this Agreement.

13.15 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

13.16 Both parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both parties agree to act in good faith to execute all instruments, prepare all documents and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified neither party shall be responsible for the service of the other.

13.17 The recitals set forth in the preamble of this Agreement are hereby incorporated into and made a substantive part of this Agreement as if fully set forth herein.

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13.18 Contractor acknowledges that the City is a California municipal corporation and is subject to the California Public Records Act, Government Code § 7920.000 et seq. ("CPRA"), and other applicable laws requiring public access to records.

13.19 Additional Terms. Exhibit "C" — Additional Terms Specific to Investment Management Relationship is attached hereto and incorporated herein by this reference. In the event of a conflict between this Agreement and Exhibit C, the terms of Exhibit C shall control with respect to the investment management relationship.
[SIGNATURES ON FOLLOWING PAGE]

Contract No. C26-16
IN WITNESS WHEREOF, the parties hereby have made and executed this Agreement to be effective as of the day and year first above written.

CITY:

CITY OF BEAUMONT
By: By:

Print
Name:

Date:

ATTEST:

By:

Nicole Wheelwright, Deputy City Clerk
Date:

APPROVED AS TO FORM:

By:

John O. Pinkney, City Attorney
Date:

CONTRACTOR:

Chandler Asse) Management, Inc.

Print
Name: Martin Cassell, CFA
Chief Financial Officer
Date: 3/30/2026

Contract No. C26-16
EXHIBIT "A"

PROPOSAL
Chandler Asset Management is pleased to continue to offer the City of Beaumont the following services:

1. Portfolio Management - Manage the City's investment portfolio pursuant to the specific, stated investment objectives. Place all orders for the purchase and sale of securities, communicate settlement information to the City's staff and coordinate security settlement.

Execute all approved trades through competitive bidding processes when possible. The investment advisor will not provide custodial services or security safekeeping.

2. Compliance Reporting - Ensure the portfolio is in compliance with applicable laws and the City's Investment Policy including ordinances and resolutions relating to the investment of public funds.

3. Portfolio Accounting and Reporting:
a. Monthly statements with all the information required by the California Government Code and Governmental Accounting Standards Board (GASB). b. Quarterly investment reports including a description of market conditions, investment strategies employed, performance, and suggested changes to investment strategy.

4. Broker/Dealer Due Diligence- Perform broker/dealer due diligence and maintain relations with the broker/dealer community.

5. Investment Policy Review - Annually, or more often if necessary, review the City's Investment Policy and provide recommended changes as needed per California Government Code or to incorporate best practices as provided by relevant statewide and national organizations. The City's Investment Policy will be submitted to the Investment Advisory Committee and the City Council for approval on an annual basis.

6. Communication - Serve as a general resource to the City's staff for information, advice, and training regarding fixed -income investments. Communicate as necessary with City staff to understand the City's investment operations.

7. Online Access — Provide and make available to the City timely online access to portfolio transactions and holdings.

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Contract No. C26-16
Fees
Chandler is pleased to provide comprehensive investment management services to the City as described herein and in the City's Scope of Services in accordance with the following fee schedule:

Fee Schedule for the City of Beaumont
Annual Asset Management
Assets Under Management Fee
First $50 million
9 basis points (0.09 of 1%)
Next $50 million
6 basis points (0.06 of 1%)
Assets over $100 million 4 basis points (0.04 of 1%)
Chandler charges management fees only on assets directly under our management. All fees are firm for the entire initial contract term and the City will not be subject to any increases during this period. Fees will be calculated by Contractor and billed monthly in arrears as of the last day of the calendar month based on the average monthly market value of the account. Market value on any date is equal to the sum of the market values on all securities.

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Contract No. C26-16
EXHIBIT "B"

CERTIFICATES OF INSURANCE
P8 iy "of 1155

Client#: 62001

CHANDAS

ACORDTM C RTIFICATE OF L NSURANCE

DA (MM/DD/YYYY)
3/26/2026
THIS CERT FICAT IS ISSUED AS A MA T R OF INFORMATION ONLY AND CONFERS NO R GHTS UPON HE CER IFICAT HOLDER. HIS

C R IFICA E DO S NOT AFFIRMATIVELY OR NEGATIV LY AMEND, EX END OR ALT R THE COVERAG AFFORDED BY TH POLICIES B LOW. H S CER IFICA E OF INSURANCE DOES NOT CONS ITU E A CONTRACT B T EN H SSU NG NSURER(S), AUTHORIZED R PRES N ATIV OR PRODUCER, AND THE C RTIFICATE HOLDER.

IMPORTAN : If the certificate holder is an ADDITIONAL NSURED, the policy(ies) must have ADD TIONAL NSURED provisions or be endorsed.

If SU ROGAT ON S AIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer any rights to the certificate holder in lieu of such endorsement(s).

PRODUC R
Starkweather & Shepley
P.O. ox 549
Providence, R 02901 - 0549
401-435-3600
NAMEAC Sarah Nagle
PHONE 781-234-0094 FAX
(A/c, No, Ext): (A/C, No):

E-MAIL starshele SNa com
ADDRESS: g @ p

INSURER(S) AFFORDING COVERAGE
NAIC #
INSURER A : Travelers Casualty Insurance
19046

INSURED
Chandler Asset Management nc
9255 Towne Centre Drive
Suite 600
San Diego, CA 92121
INSURER B : Travelers Insurance Company
25674
Hartford Fire nsurance Company INSURER C : P y
19682
INSURER D : Twin City Fire Insurance Company
29459
INSURER E : Houston Casualty Co
42374
INSURER F :

COVERAG S
CERT FICATE NUM ER:

R VIS ON NUMB R:

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

NR
LTR

YP OF NSURANCE
INSR
WVD

POLICY NUM R

POLICY EFF

POLICY EXP
(MM/DD/YYYY)
LIMITS
A
X

COMMERCIAL GENERAL LIAB LITY
Y
Y
6802C0796052542
09/01/2025
09/01/2026

EACH OCCURRENCE
$$2,000,000
DAMAGE IS (Ea O RENTED
$$1,000,000

CLAIMS -MADE
X
OCCUR
MED EXP (Any one person)
$5,000
X
Per ritten Contract

PERSONAL & ADV INJURY
$2,000,000
Ded -0-

GENERAL AGGREGATE
$4,000,000
GEN'L

AGGREGATE
X

LIMIT APPLIES
PRO -
PER:

LOC

PRODUCTS - COMP/OP AGG
$4,000,000
$
A

AUTOMOBILE
X
X

LIABILITY

ANY AUTO
OWNED
X
S

SCHEDULED
AUTOS

NON -OWNED

AUTOS ONLY
Y
Y
BA4N1159572542G
Liab Ded -0-
09/01/2025
09/01/2026
COMBINaccidEDent) SINGLE LIMIT
(Ea
$1,000,000
BODILY INJURY (Per person)
$
BODILY INJURY (Per accident)
$

PROPERTY DAMAGE
Per accident)
$
$
B
X

UMBRELLA LIAB

EXCESS LIAB
X
OCCUR

CLAIMS -MADE
Y
Y
CUP2C08502242
09/01/2025
09/01/2026

EACH OCCURRENCE
$10,000,000

AGGREGATE
$10,000,000
$
DED
X
RETENTION s$0
C

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY

ANY PROPRIETOR/PARTNER/EXECUTIVE
OFFICER/MEMBER EXCLUDED?
(Mandatory in NH)
If yes, describe under
DESCRIPTION OF OPERATIONS below
Y/ N
N
N IA
Y
02WECCR2756
09/01/2025
09/01/2026
X
PER

STATUTE
0TH -
ER
E.L. EACH ACCIDENT
$1,000,000
E.L. DISEASE - EA EMPLOYEE
$1,000,000
E.L. DISEASE - POLICY LIMIT
$1,000,000
0 m G
Professional Liab
Cyber Liability
Crime
08DC021984525
H25NGP20973102
08FA024546725
08/02/2025
08/02/2025
08/02/2025
08/02/2026
08/02/2026
08/02/2026
10,000,000
4,000,000
10,000,000
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) Endurance Risk Solutions #43630 1st Excess Professional Liability F1X30001867805 Eff. 8-02-2025 xp. 8-02-2026 Limit $10,000,000
ACE American Insurance Company #22667 2nd Excess Professional Liability G71853354001 Eff. 8-02-2025 xp. 8-02-2026 Limit $10,000,000
Total Professional (E&O) Limits $30,000,000
Hartford Professional Liability Retroactive Date 9-01-2003

CERT FICATE HOLD R

CANCELLAT ON
City of Beaumont
550 E Sixth Street
eaumont, CA 92223

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03) 1 of 1 The ACORD name and ,oggarrai r #S2799988/M2670114
w
11 © 1988-2015 ACORD CORPORA ION. All rights reserved.
rri f ACORD
SHL

Policy# BA4N1159572542 G
Effective 9/1/25 - 9/1/26 EXHIBIT "B"

COMMERCIAL AUTO
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

AUTO COVERAGE PLUS ENDORSEMENT
This endorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM
GENERAL DESCRIPTION OF COVERAGE — This endorsement broadens coverage. However, coverage for any injury, damage or medical expenses described in any of the provisions of this endorsement may be excluded or limited by another endorsement to the Coverage Part, and these coverage broadening provisions do not apply to the extent that coverage is excluded or limited by such an endorsement. The following listing is a general cover- age description only. Limitations and exclusions may apply to these coverages. Read all the provisions of this en- dorsement and the rest of your policy carefully to determine rights, duties, and what is and is not covered.

A. BLANKET ADDITIONAL INSURED
B. EMPLOYEE HIRED AUTO
C. EMPLOYEES AS INSURED
D. SUPPLEMENTARY PAYMENTS - INCREASED
LIMITS
E. TRAILERS - INCREASED LOAD CAPACITY
F. HIRED AUTO PHYSICAL DAMAGE
G. PHYSICAL DAMAGE - TRANSPORTATION

EXPENSES - INCREASED LIMIT
A. BLANKET ADDITIONAL INSURED
The following is added to Paragraph A.1., Who Is
An Insured, of SECTION II - COVERED AUTOS
LIABILITY COVERAGE:

Any person or organization who is required under
a written contract or agreement between you and
that person or organization, that is signed and
executed by you before the "bodily injury" or
"property damage" occurs and that is in effect
during the policy period, to be named as an addi-
tional insured is an "insured" for Covered Autos
Liability Coverage, but only for damages to which
this insurance applies and only to the extent that
person or organization qualifies as an "insured"
under the Who Is An Insured provision contained
in Section II.

B. EMPLOYEE HIRED AUTO

1. The following is added to Paragraph A.1.,
Who Is An Insured, of SECTION II — COV-
ERED AUTOS LIABILITY COVERAGE:

An "employee" of yours is an "insured" while
operating a covered "auto" hired or rented
under a contract or agreement in an "em-
ployee's" name, with your permission, while
CA T4 20 02 15
H. AUDIO, VISUAL AND DATA ELECTRONIC

EQUIPMENT - INCREASED LIMIT
I. WAIVER OF DEDUCTIBLE - GLASS
J. PERSONAL PROPERTY
K. AIRBAGS
L. AUTO LOAN LEASE GAP
M. BLANKET WAIVER OF SUBROGATION
performing duties related to the conduct of
your business.

2. The following replaces Paragraph b. in B.5.,
Other Insurance, of SECTION IV - BUSI-
NESS AUTO CONDITIONS:
b. For Hired Auto Physical Damage Cover-
age, the following are deemed to be cov-
ered "autos" you own:
(1) Any covered "auto" you lease, hire,
rent or borrow; and
(2) Any covered "auto" hired or rented by
your "employee" under a contract in
an "employee's" name, with your
permission, while performing duties
related to the conduct of your busi-
ness.

However, any "auto" that is leased, hired,
rented or borrowed with a driver is not a
covered "auto".

C. EMPLOYEES AS INSURED
The following is added to Paragraph A.1., Who Is
An Insured, of SECTION II - COVERED AUTOS
LIABILITY COVERAGE:
© 2015 The Travelers Indemnity Company. All rights reserved.

Includes copyrighted material of Insurance Services Office, Inc. with its permission.

Pa h�bli� " "1- B55

EXHIBIT "B"

COMMERCIAL AUTO
•
en
a
tn
co
co
o
Any "employee" of yours is an "insured" while us-
ing a covered "auto" you don't own, hire or borrow
in your business or your personal affairs.

D. SUPPLEMENTARY PAYMENTS - INCREASED
LIMITS

1. The following replaces Paragraph A.2.a.(2) of

SECTION II - COVERED AUTOS LIABILITY
COVERAGE:
(2) Up to $3,000 for cost of bail bonds (in-
cluding bonds for related traffic law viola-
tions) required because of an "accident"
we cover. We do not have to furnish
these bonds.

2. The following replaces Paragraph A.2.a.(4) of

SECTION II - COVERED AUTOS LIABILITY
COVERAGE:
(4) All reasonable expenses incurred by the
"insured" at our request, including actual
loss of earnings up to $500 a day be-
cause of time off from work.

E. TRAILERS - INCREASED LOAD CAPACITY
The following replaces Paragraph C.1. of SEC-
TION I - COVERED AUTOS:

1. "Trailers" with a load capacity of 3,000
pounds or less designed primarily for travel
on public roads.

F. HIRED AUTO PHYSICAL DAMAGE
The following is added to Paragraph A.4., Cover-
age Extensions, of SECTION III - PHYSICAL
DAMAGE COVERAGE:

Hired Auto Physical Damage Coverage
If hired "autos" are covered "autos" for Covered
Autos Liability Coverage but not covered "autos"
for Physical Damage Coverage, and this policy
also provides Physical Damage Coverage for an
owned "auto", then the Physical Damage Cover-
age is extended to "autos" that you hire, rent or
borrow subject to the following:
(1) The most we will pay for "loss" to any one
"auto" that you hire, rent or borrow is the
lesser of:
(a) $50,000;
(b) The actual cash value of the damaged or
stolen property as of the time of the
"loss"; or
(c) The cost of repairing or replacing the
damaged or stolen property with other
property of like kind and quality.

(2) An adjustment for depreciation and physical
condition will be made in determining actual
cash value in the event of a total "loss".
(3) If a repair or replacement results in better
than like kind or quality, we will not pay for the
amount of betterment.
(4) A deductible equal to the highest Physical
Damage deductible applicable to any owned
covered "auto".
(5) This Coverage Extension does not apply to:
(a) Any "auto" that is hired, rented or bor-
rowed with a driver; or
(b) Any "auto" that is hired, rented or bor-
rowed from your "employee".

G. PHYSICAL DAMAGE - TRANSPORTATION

EXPENSES - INCREASED LIMIT
The following replaces the first sentence in Para-
graph A.4.a., Transportation Expenses, of
SECTION III — PHYSICAL DAMAGE COVER-
AGE:

We will pay up to $50 per day to a maximum of
$1,500 for temporary transportation expense in-
curred by you because of the total theft of a cov-
ered "auto" of the private passenger type.

H. AUDIO, VISUAL AND DATA ELECTRONIC

EQUIPMENT - INCREASED LIMIT
Paragraph C.1.b. of SECTION III - PHYSICAL
DAMAGE COVERAGE is deleted.

I. WAIVER OF DEDUCTIBLE — GLASS
The following is added to Paragraph D., Deducti-
ble, of SECTION III - PHYSICAL DAMAGE
COVERAGE:

No deductible for a covered "auto" will apply to
glass damage if the glass is repaired rather than
replaced.

J. PERSONAL PROPERTY
The following is added to Paragraph A.4., Cover-
age Extensions, of SECTION III — PHYSICAL
DAMAGE COVERAGE:

Personal Property Coverage
We will pay up to $400 for "loss" to wearing ap-
parel and other personal property which is:
(1) Owned by an "insured"; and
(2) In or on your covered "auto".

This coverage only applies in the event of a total
theft of your covered "auto".

No deductibles apply to Personal Property cover-
age.
© 2015 The Travelers Indemnity Company. All rights reserved. CA T4 20 02 15 Includes copyrighted material of Insurance Services Office, Inc. with its permission. 014299
P h1bli2" "'455

EXHIBIT "B"

COMMERCIAL AUTO
K. AIRBAGS
The following is added to Paragraph B.3., Exclu-
sions, of SECTION III - PHYSICAL DAMAGE
COVERAGE:

Exclusion 3.a. does not apply to "loss" to one or
more airbags in a covered "auto" you own that in-
flate due to a cause other than a cause of "loss"
set forth in Paragraphs A.1.b. and A.1.c., but
only:
a. If that "auto" is a covered "auto" for Compre-
hensive Coverage under this policy;
b. The airbags are not covered under any war-
ranty; and
c. The airbags were not intentionally inflated.

We will pay up to a maximum of $1,000 for any
one "loss".

L. AUTO LOAN LEASE GAP
The following is added to Paragraph A.4., Cover-
age Extensions, of SECTION III - PHYSICAL
DAMAGE COVERAGE:

Auto Loan Lease Gap Coverage for Private
Passenger Type Vehicles
In the event of a total "loss" to a covered "auto" of
the private passenger type shown in the Schedule
or Declarations for which Physical Damage Cov-
erage is provided, we will pay any unpaid amount
due on the lease or loan for such covered "auto"
less the following:
(1) The amount paid under the Physical Damage
Coverage Section of the policy for that "auto";
and
CA T4 20 02 15
(2) Any:
(a) Overdue lease or loan payments at the
time of the "loss";
(b) Financial penalties imposed under a
lease for excessive use, abnormal wear
and tear or high mileage;
(c) Security deposits not returned by the les-
sor;
(d) Costs for extended warranties, Credit Life
Insurance, Health, Accident or Disability
Insurance purchased with the loan or
lease; and
(e) Carry-over balances from previous loans
or leases.

M. BLANKET WAIVER OF SUBROGATION
The following replaces Paragraph A.5., Transfer
Of Rights Of Recovery Against Others To Us,
of SECTION IV - BUSINESS AUTO CONDI-
TIONS:

5. Transfer Of Rights Of Recovery Against
Others To Us
We waive any right of recovery we may have
against any person or organization to the ex-
tent required of you by a written contract exe-
cuted prior to any "accident" or "loss", pro-
vided that the "accident" or "loss" arises out of
the operations contemplated by such con-
tract. The waiver applies only to the person or
organization designated in such contract.
© 2015 The Travelers Indemnity Company. All rights reserved.

Includes copyrighted material of Insurance Services Office, Inc. with its permission.

P h►lgli "1-555

Policy# 6802C0796052442
EXHIBIT "B"

COMMERCIAL GENERAL LIABILITY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

BLANKET ADDITIONAL INSURED - OWNERS, LESSEES

OR CONTRACTORS
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART
PROVISIONS:

1. WHO IS AN INSURED (SECTION II) is amended_.
to include as an insured any person or organiza-
tion (called hereafter "additional insured") whom
you have agreed in a written contract, executed
prior to loss, to name as additional insured, but
only with respect to liability arising out of "your
work" or your ongoing operations for that addi-
tional insured performed by you or for you.

2. With respect to the insurance afforded to Addi-
tional Insureds the following conditions apply:
a. Limits of Insurance — The following limits of
liability apply:

1. The limits which you agreed to provide;
or

2. The limits shown on the declarations,
whichever is less.
b. This insurance is excess over any valid and
collectible insurance unless you have agreed
CG D1 05 04 94
in a written contract for this insurance to
apply on a primary or contributory basis.

3. This insurance does not apply:
a. on any basis to any person or organization
for whom you have purchased an Owners
and Contractors Protective policy.
b. to "bodily injury," "property damage," "per-
sonal injury," or "advertising injury" arising
out of the rendering of or the failure to render
any professional services by or for you, in-
cluding:

1. The preparing, approving or failing to
prepare or approve maps, drawings,
opinions, reports, surveys, change or-
ders, designs or specifications; and

2. Supervisory, inspection or engineering
services.

Copyright, The Travelers Indemnity Company, 1994.

Includes Copyrighted Material from Insurance Services Office, Inc.

P h► it "1-$55

EXHIBIT "B"

COMMERCIAL GENERAL LIABILITY
POLICY NUMBER: 680-2C079605-25-42 ISSUE DATE: 07/08/2025 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY

TOTAL GENERAL AGGREGATE LIMIT

DESIGNATED PROJECT(S) - GENERAL

AGGREGATE LIMIT
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

SCHEDULE
Total General Aggregate Limit: $ 4,000,000
Designated Project(s): EACH "PROJECT" FOR WHICH YOU HAVE

AGREED, IN A WRITTEN CONTRACT WHICH IS

IN EFFECT DURING THE POLICY PERIOD, TO

PROVIDE A SEPARATE GENERAL AGGREGATE
LIMIT; PROVIDED THAT, THE CONTRACT IS

SIGNED AND EXECUTED PRIOR TO ANY LOSS
FOR WHICH COVERAGE IS SOUGHT.
,o
o
o
CD
cn
o
u
(If no entry appears above, information required to complete as applicable to this endorsement.)
A. The Total General Aggregate Limit stated in the
Schedule above is the most we will pay for the
sum of all:

1. Medical Expenses under COVERAGE C
(SECTION I);

2. Damages under COVERAGE A (SECTION I),
except damages because of "bodily injury" or
"property damage" included in the "products -
completed operations hazard"; and

3. Damages under COVERAGE B (SECTION I)
regardless of the number of:
a. Insureds;
b. Claims made or "suits" brought;
c. Persons or organizations making claims or
bringing "suits"; or
d. Designated "projects" listed in the SCHED-
ULE above.

B. For all sums which the insured becomes legally
obligated to pay as damages caused by "occur-
rences" under COVERAGE A (SECTION I), and
for all medical expenses caused by accidents un-
this endorsement will be shown in the Declarations
der COVERAGE C (SECTION I), which can be at-
tributed only to operations at a single designated
"project" shown in the Schedule above:

1. A separate Designated Project General Ag-
gregate Limit applies to each designated "pro-
ject", and that limit is equal to the amount of
the General Aggregate Limit shown in the
Declarations.

2. Subject to the Total General Aggregate Limit
stated in the Schedule above, the Designated
Project General Aggregate Limit is the most
we will pay for the sum of all damages under
COVERAGE A, except damages because of
"bodily injury" or "property damage" included
in the "products -completed operations haz-
ard", and for medical expenses under COV-
ERAGE C regardless of the number of:
a. Insureds;
b. Claims made or "suits" brought; or
c. Persons or organizations making claims
or bringing "suits".
015903
CG D3 21 01 04
Copyright, The Travelers Indemnity Company, 2004 Page 1 of 2 P h7I i5" "'-1755

EXHIBIT "B"

COMMERCIAL GENERAL LIABILITY

3. Any payments made under COVERAGE A for
damages or under COVERAGE C for medical
expenses shall reduce both the Total General
Aggregate Limit stated in the Schedule
above, and the Designated Project General
Aggregate Limit for that designated "project".

Such payments shall not reduce the General
Aggregate Limit shown in the Declarations
nor shall they reduce any other Designated
Project General Aggregate Limit for any other
designated "project" shown in the Schedule
above.

4. The limits shown in the Declarations for Each.

Occurrence, Damage To Premises Rented To
You and Medical Expense continue to apply.

However, instead of being subject to the
General Aggregate Limit shown in the Decla-
rations, such limits will be subject to both the
Total General Aggregate Limit stated in the
Schedule above, and the applicable Desig-
nated Project General Aggregate Limit.

C. For all sums which the insured becomes legally
obligated to pay as damages caused by "occur-
rences" under COVERAGE A (SECTION I), and
for all medical expenses caused by accidents un-
der COVERAGE C (SECTION I), which cannot be
attributed only to operations at a single desig-
nated "project" shown in the Schedule above:

1. Any payments made under COVERAGE A for
damages or under COVERAGE C for medical
expenses shall reduce the amount available
under the Total General Aggregate Limit
stated in the Schedule above and the General
Aggregate Limit, or the Products -Completed
Operations Aggregate Limit, whichever is ap-
plicable; and

2. Such payments shall not reduce any Desig-
nated Project General Aggregate Limit.

As respects this Provision C., the limits shown in
the Declarations for Each Occurrence, Damage
To Premises Rented To You and Medical Ex-
pense continue to apply.

D. Part 2. of SECTION III - LIMITS OF INSURANCE
is deleted and replaced by the following:

2. The General Aggregate Limit is the most we
will pay for the sum of:
a. Damages under Coverage B; and
b. Damages from "occurrences" under
COVERAGE A (SECTION I) and for all
medical expenses caused by accidents
under COVERAGE C (SECTION I) which
cannot be attributed only to operations at
a single designated "project" shown in the
SCHEDULE above.

E. When coverage for liability, arising out of the
"products -completed operations hazard" is pro-
vided, any payments for damages because of
"bodily injury" or "property damage" included in
the "products -completed operations hazard" will
reduce the Products -Completed Operations Ag-
gregate Limit, and not reduce the Total General
Aggregate Limit stated in the Schedule above, the
General Aggregate Limit, or the Designated Pro-
ject General Aggregate Limit.

F. For the purposes of this endorsement the Defini-
tions Section is amended by the addition of the
following definition:
"Project" means an area away from premises
owned by or rented to you at which you are per-
forming operations pursuant to a contract or
agreement. For the purposes of determining the
applicable aggregate limit of insurance, each
"project" that includes premises involving the
same or connecting lots, or premises whose con-
nection is interrupted only by a street, roadway,
waterway or right-of-way of a railroad shall be
considered a single "project".

G. The provisions of LIMITS OF INSURANCE
(SECTION III) not otherwise modified by this en-
dorsement shall continue to apply as stipulated.

Copyright, The Travelers Indemnity Company, 2004
P h►7146" '1-8355
CG D3 21 01 04

Policy #6802O07960542
EXHIBIT "B"
co
en

COMMERCIAL GENERAL LIABILITY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

XTEND ENDORSEMENT FOR SMALL BUSINESSES
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART
GENERAL DESCRIPTION OF COVERAGE — This endorsement broadens coverage. However, coverage for any injury, damage or medical expenses described in any of the provisions of this endorsement may be excluded or limited by another endorsement to this Coverage Part, and these coverage broadening provisions do not apply to the extent that coverage is excluded or limited by such an endorsement. The following listing is a general coverage description only. Read all the provisions of this endorsement and the rest of your policy carefully to determine rights, duties, and what is and is not covered.

A. Who Is An Insured — Unnamed Subsidiaries
B. Who Is An Insured — Employees And Volunteer
Workers — Bodily Injury To Co -Employees And
Co -Volunteer Workers

PROVISIONS
A. WHO IS AN INSURED - UNNAMED

SUBSIDIARIES
The following is added to SECTION II - WHO IS
AN INSURED:

Any of your subsidiaries, other than a partnership
or joint venture, that is not shown as a Named
Insured in the Declarations is a Named Insured
if:
a. You are the sole owner of, or maintain an
ownership interest of more than 50% in, such
subsidiary on the first day of the policy
period; and
b. Such subsidiary is not an insured under
similar other insurance.

No such subsidiary is an insured for "bodily
injury" or "property damage" that occurred, or
"personal and advertising injury' caused by an
offense committed:
a. Before you maintained an ownership interest
of more than 50% in such subsidiary; or
b. After the date, if any, during the policy period
that you no longer maintain an ownership
interest of more than 50% in such subsidiary.

For purposes of Paragraph 1. of Section II — Who
Is An Insured, each such subsidiary will be
deemed to be designated in the Declarations as:
a. A limited liability company;
C. Who Is An Insured — Newly Acquired Or
Formed Limited Liability Companies
D. Incidental Medical Malpractice
E. Blanket Waiver Of Subrogation
b. An organization other than a partnership, joint
venture or limited liability company; or
c. A trust;
as indicated in its name or the documents that
govern its structure.

B. WHO IS AN INSURED - EMPLOYEES AND

VOLUNTEER WORKERS - BODILY INJURY

TO CO -EMPLOYEES AND CO -VOLUNTEER

WORKERS
The following is added to Paragraph 2.a.(1) of
SECTION II — WHO IS AN INSURED:

Paragraphs (1)(a), (b) and (c) above do not
apply to "bodily injury" to a co -"employee" while
in the course of the co"employee's" employment
by you or performing duties related to - the
conduct of your business, or to_"bodily injury" to
your other "volunteer workers" while performing
duties related to the conduct of your business.

C. WHO IS AN INSURED - NEWLY ACQUIRED

OR FORMED LIMITED LIABILITY COMPANIES

1. The following replaces the first sentence of
Paragraph 3. of SECTION II - WHO IS AN
INSURED:

Any organization you newly acquire or form,
other than a partnership or joint venture, and
of which you are the sole owner or in which
you maintain an ownership interest of more
than 50%, will qualify as a Named Insured if
015943
CG D8 42 02 19
© 2018 The Travelers Indemnity Company. All rights reserved.

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

P hlbliV" "'x$55

EXHIBIT "B"

COMMERCIAL GENERAL LIABILITY
there is no other similar insurance available
to that organization.

2. The following replaces the last sentence of
Paragraph 3. of SECTION II - WHO IS AN
INSURED:

For the purposes of Paragraph 1. of Section
II — Who Is An Insured, each such
organization will be deemed to be
designated in the Declarations as:
a. A limited liability company;
b. An organization other than a partnership,
joint venture or limited liability company;
or
c. A trust;
as indicated in its name or the documents
that govern its structure.

D. INCIDENTAL MEDICAL MALPRACTICE

1. The following replaces Paragraph b. of the
definition of "occurrence" in the
DEFINITIONS Section:
b. An act or omission committed in
providing or failing to provide "incidental
medical services", first aid or "Good
Samaritan services" to a person, unless
you are in the business or occupation of
providing professional health care
services.

2. The following replaces the last paragraph of
Paragraph 2.a.(1) of SECTION II - WHO IS
AN INSURED:

Unless you are in the business or occupation
of providing professional health care
services, Paragraphs (1)(a), (b), (c) and (d)
above do not apply to "bodily injury" arising
out of providing or failing to provide:
(a) "Incidental medical services" by any of
your "employees" who is a nurse, nurse
assistant, emergency medical
technician, paramedic, athletic trainer,
audiologist, dietician, nutritionist,
occupational therapist or occupational
therapy assistant, physical therapist or
speech -language pathologist; or
(b) First aid or "Good Samaritan services"
by any of your "employees" or "volunteer
workers", other than an employed or
volunteer doctor. Any such "employees"
or "volunteer workers" providing or failing
to provide first aid or "Good Samaritan
services" during their work hours for you
will be deemed to be acting within the
scope of their employment by you or
performing duties related to the conduct
of your business.

3. The following replaces the last sentence of
Paragraph 5. of SECTION III - LIMITS OF
INSURANCE:

For the purposes of determining the
applicable Each Occurrence Limit, all related
acts or omissions committed in providing or
failing to provide "incidental medical
services", first aid or "Good Samaritan
services" to any one person will be deemed
to be one "occurrence".

4. The following exclusion is added to
Paragraph 2., Exclusions, of SECTION I -

COVERAGES - COVERAGE A - BODILY

INJURY AND PROPERTY DAMAGE
LIABILITY:

Sale Of Pharmaceuticals
"Bodily injury" or "property damage" arising
out of the violation of a penal statute or
ordinance relating to the sale of
pharmaceuticals committed by, or with the
knowledge or consent of, the insured.

5. The following is added to the DEFINITIONS
Section:
"Incidental medical services" means:
a. Medical, surgical, dental, laboratory, x-
ray or nursing service or treatment,
advice or instruction, or the related
furnishing of food or beverages; or
b. The furnishing or dispensing of drugs or
medical, dental, or surgical supplies or
appliances.

6. The following is added to Paragraph 4.b.,
Excess Insurance, of SECTION IV -

COMMERCIAL GENERAL LIABILITY
CONDITIONS:

This insurance is excess over any valid and
collectible other insurance, whether primary,
excess, contingent or on any other basis,
that is available to any of your "employees"
for "bodily injury" that arises out of providing
or failing to provide "incidental medical
services" to any person to the extent not
subject to Paragraph 2.a.(1) of Section II —
Who Is An Insured.

E. BLANKET WAIVER OF SUBROGATION
The following is added to Paragraph 8., Transfer
Of Rights Of Recovery Against Others To Us,

© 2018 The Travelers Indemnity Company. All rights reserved.

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

P IB4ts'lo'f 11155
CG D8 42 02 19

EXHIBIT "B"

COMMERCIAL GENERAL LIABILITY
of SECTION IV - COMMERCIAL GENERAL
LIABILITY CONDITIONS:

If the insured has agreed in a contract or
agreement to waive that insured's right of
recovery against any person or organization, we
waive our right of recovery against such person
or organization, but only for payments we make
because of:

CI
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0 a. "Bodily injury" or "property damage" that
occurs; or
b. "Personal and advertising injury" caused by
an offense that is committed;
subsequent to the execution of the contract or
agreement.

CG D8 42 02 19
015944
© 2018 The Travelers Indemnity Company. All rights reserved.

Includes copyrighted material of Insurance Services Office. Inc.. with its permission.

P 'Mg lig 11t'55

EXHIBIT "B"
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

CALIFORNIA CHANGES - CANCELLATION

AND NONRENEWAL
This endorsement modifies insurance provided under the following:

CAPITAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PART

COMMERCIAL AUTOMOBILE COVERAGE PART

COMMERCIAL GENERAL LIABILITY COVERAGE PART

COMMERCIAL INLAND MARINE COVERAGE PART

COMMERCIAL PROPERTY COVERAGE PART

CRIME AND FIDELITY COVERAGE PART

EMPLOYMENT -RELATED PRACTICES LIABILITY COVERAGE PART

EQUIPMENT BREAKDOWN COVERAGE PART

FARM COVERAGE PART

LIQUOR LIABILITY COVERAGE PART

MEDICAL PROFESSIONAL LIABILITY COVERAGE PART

POLLUTION LIABILITY COVERAGE PART

PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART
A. Paragraphs 2. and 3. of the Cancellation
Common Policy Condition are replaced by the
following:

2. All Policies In Effect For 60 Days Or Less
If this policy has been in effect for 60 days or
less, and is not a renewal of a policy we have
previously issued, we may cancel this policy
by mailing or delivering to the first Named
Insured, at the mailing address shown in the
policy, and to the producer of record,
advance written notice of cancellation, stating
the reason for cancellation, at least:
a. 10 days before the effective date of
cancellation if we cancel for:
(1) Nonpayment of premium; or
(2) Discovery of fraud by:
(a) Any insured or his or her
representative in obtaining this
insurance; or
(b) You or your representative in
pursuing a claim under this
policy.
b. 30 days before the effective date of
cancellation if we cancel for any other
reason.

3. All Policies In Effect For More Than 60
Days
a. If this policy has been in effect for more
than 60 days, or is a renewal of a policy
we issued, we may cancel this policy
only upon the occurrence, after the
effective date of the policy, of one or
more of the following:
(1) Nonpayment of premium, including
payment due on a prior policy we
issued and due during the current
policy term covering the same risks.
(2) Discovery of fraud or material
misrepresentation by:
(a) Any insured or his or her
representative in obtaining this
insurance; or
(b) You or your representative in
pursuing a claim under this
policy.
(3) A judgment by a court or an
administrative tribunal that you have
violated a California or Federal law,
having as one of its necessary
elements an act which materially
increases any of "the risks insured
against.
(4) Discovery of willful or grossly
negligent acts or omissions, or of any
violations of state laws or regulations
establishing safety standards, by you
or your representative, which
materially increase any of the risks
insured against.

IL 02 70 07 20
015967
© Insurance Services Office, Inc., 2020
PEA MO' 111255

EXHIBIT "B"
(5) Failure by you or your representative
to implement reasonable loss control
requirements, agreed to by you as a
condition of policy issuance, or which
were conditions precedent to our use
of a particular rate or rating plan, if
that failure materially increases any
of the risks insured against.
(6) A determination by the Commissioner
of Insurance that the:
(a) Loss of, or changes in, our
reinsurance covering all or part of
the risk would threaten our
financial integrity or solvency; or
(b) Continuation of the policy
coverage would:
(i) Place us in violation of
California law or the laws of
the state where we are
domiciled; or
(ii) Threaten our solvency.
(7) A change by you or your
representative in the activities or
property of the commercial or
industrial enterprise, which results in
a materially added, increased or
changed risk, unless the added,
increased or changed risk is included
in the policy.
b. We will mail or deliver advance written
notice of cancellation, stating the reason
for cancellation, to the first Named
Insured, at the mailing address shown in
the policy, and to the producer of record,
at least:
(1) 10 days before the effective date of
cancellation if we cancel for
nonpayment of premium or discovery
of fraud; or
(2) 30 days before the effective date of
cancellation if we cancel for any other
reason listed in Paragraph 3.a.

B. The following provision is added to the
Cancellation Common Policy Condition:

7. Residential Property
This provision applies to coverage on real
property which is used predominantly for
residential purposes and consisting of not
more than four dwelling units, and to
coverage on tenants' household personal
property in a residential unit, if such coverage
is written under one of the following:

Commercial Property Coverage Part
Farm Coverage Part — Farm Property — Farm
Dwellings, Appurtenant Structures And
Household Personal Property Coverage Form
a. If such coverage has been in effect for 60
days or less, and is not a renewal of
coverage we previously issued, we may
cancel this coverage for any reason,
except as provided in b. and c. below.
b. We may not cancel this policy solely
because the first Named. Insured has:
(1) Accepted an offer of earthquake
coverage; or
(2) Cancelled or did not renew a policy
issued by the California Earthquake
Authority (CEA) that included an
earthquake policy premium
surcharge.

However, we shall cancel this policy if the
first Named Insured has accepted a new
or renewal policy issued by the CEA that
includes an earthquake policy premium
surcharge but fails to pay the earthquake
policy premium surcharge authorized by
the CEA.
c. We may not cancel such coverage solely
because corrosive soil conditions exist on
the premises. This restriction (c.) applies
only if coverage is subject to one of the
following, which exclude loss or damage
caused by or resulting from corrosive soil
conditions:
(1) Commercial Property Coverage Part
— Causes Of Loss — Special Form; or
(2) Farm Coverage Part — Causes Of
Loss Form — Farm Property,
Paragraph D. Covered Causes Of
Loss — Special.
d. If a state of emergency under California
Law is declared and the residential
property is located in any ZIP Code within
or adjacent to the fire perimeter, as
determined by California Law, we may
not cancel this policy for one year,
beginning from the date the state of
emergency is declared, solely because
the dwelling or other structure is located
in an area in which a wildfire has
occurred. However, we may cancel:

© Insurance Services Office, Inc., 2020 IL 02 70 07 20
PEgbititliliVf 11135

EXHIBIT "B"
o
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oi�
(1) When you have not paid the
premium, at any time by letting you
know at least 10 days before the date
cancellation takes effect;
(2) If willful or grossly negligent acts or
omissions by the Named Insured, or
his or her representatives, are
discovered that materially increase
any of the risks insured against; or
(3) If there are physical changes in the
property insured against, beyond the
catastrophe -damaged condition of
the structures and surface landscape,
which result in the property becoming
uninsurable.

C. The following is added and supersedes any
provisions to the contrary:

Nonrenewal

1. Subject to the provisions of Paragraphs C.2.
and C.3. below, if we elect not to renew this
policy, we will mail or deliver written notice,
stating the reason for nonrenewal, to the first
Named Insured shown in the Declarations,
and to the producer of record, at least 60
days, but not more than 120 days, before the
expiration or anniversary date.

We will mail or deliver our notice to the first
Named Insured, and to the producer of
record, at the mailing address shown in the
policy.

2. Residential Property
This provision applies to coverage on real
property used predominantly for residential
purposes andconsisting of not more than
four dwelling units, and to coverage on
tenants' household property contained in a
residential unit, if such coverage is written
under one of the following:

Commercial Property Coverage Part
Farm Coverage Part — Farm Property — Farm
Dwellings, Appurtenant Structures And
Household Personal Property Coverage Form
a. If this policy provides coverage as
described in the preceding paragraph,
and we elect not to renew this policy, we
will mail or deliver written notice, stating
the reason for nonrenewal, to the first
Named Insured shown in the
Declarations, and to the producer record
at the mailing address shown in the
policy, at least 75 days, but not more
than 120 days, before the expiration or
anniversary date.

If we fail to give the first Named Insured
shown in the Declarations notice of
nonrenewal at least 75 days prior to the
policy expiration, as required in the
paragraph above, this policy, with no
change in its terms and conditions, shall
remain in effect for 75 days from the date
that the notice of nonrenewal is delivered
or mailed to the Named Insured. A notice
to this effect shall be provided by us to
the first Named Insured with the notice of
nonrenewal.
b. We may elect not to renew such
coverage for any reason, except as
provided in Paragraphs c., d. and e.
below.
c. We will not refuse to renew such
coverage solely because the first Named
Insured has accepted an offer of
earthquake coverage.

However, the following applies only to
insurers who are associate participating
insurers as established by Cal. Ins. Code
Section 10089.16. We may elect not to
renew such coverage after the first
Named Insured has accepted an offer of
earthquake coverage, if one or more of
the following reasons applies:
(1) The nonrenewal is based on sound
underwriting principles that relate to
the coverages provided by this policy
and that are consistent with the
approved rating plan and related
documents filed with the Department
of Insurance as required by existing
law;
(2) The Commissioner of Insurance finds
that the exposure to potential losses
will threaten our solvency or place us
in a hazardous condition. A
hazardous condition includes, but is
not limited to, a condition in which we
make claims payments for losses
resulting from an earthquake that
occurred within the preceding two
years and that required a reduction in
policyholder surplusof at least 25%
for payment of those claims; or
015968
IL 02 70 07 20
© Insurance Services Office, Inc., 2020
P 11155

EXHIBIT "B"
(3) We have:
(a) Lost or experienced a substantial
reduction in the availability or
scope of reinsurance coverage;
or
(b) Experienced a substantial
increase in the premium charged
for reinsurance coverage of our
residential property insurance
policies; and
the Commissioner has approved a
plan for the nonrenewals that is fair
and equitable, and that is responsive
to the changes in our reinsurance
position.
d. We will not refuse to renew such
coverage solely because the first Named
Insured has cancelled or did not renew a
policy, issued by the California
Earthquake Authority, that included an
earthquake policy premium surcharge.
e. We will not refuse to renew such
coverage solely because corrosive soil
conditions exist on the premises. This
restriction (e.) applies only if coverage is
subject to one of the following, which
exclude loss or damage caused by or
resulting from corrosive soil conditions:
(1) Commercial Property Coverage Part
— Causes Of Loss — Special Form; or
(2) Farm Coverage Part — Causes Of
Loss Form — Farm Property,
Paragraph D. Covered Causes Of
Loss — Special.
f. If a state of emergency under California
Law is declared and the residential
property is located in any ZIP Code within
or adjacent to the fire perimeter, as
determined by California Law, we may
not nonrenew this policy for one year,
beginning from the date the state of
emergency is declared, solely because
the dwelling or other structure is located
in an area in which a wildfire has
occurred.

However, we may nonrenew:
(1) If willful or grossly negligent acts or
omissions by the Named Insured, or
his or her representatives, are
discovered that materially increase
any of the risks insured against;
(2) If losses unrelated to the postdisaster
loss condition of the property have
occurred that would collectively
render the risk ineligible for renewal;
or
(3) If there are physical changes in the
propertyinsured against, beyond the
catastrophe -damaged condition of
the structures and surface landscape,
which result in the property becoming
uninsurable.

3. We are not required to send notice of
nonrenewal in the following situations:
a. If the transfer or renewal of a policy,
without any changes in terms, conditions
or rates, is between us and a member of
our insurance group.
b. If the policy has been extended for 90
days or less, provided that notice has
been given in accordance with Paragraph
C.1.
c. If you have obtained replacement
coverage, or if the first Named Insured
has agreed, in writing, within 60 days of
the termination of the policy, to obtain
that coverage.
d. If the policy is for a period of no more
than 60 days and you are notified at the
time of issuance that it will not be
renewed.
e. If the first Named Insured requests a
change in the terms or conditions or risks
covered by the policy within 60 days of
the end of the policy period.
f. If we have made a written offer to the first
Named Insured, in accordance with the
timeframes shown in Paragraph C.1., to
renew the policy under changed terms or
conditions or at an increased premium
rate, when the increase exceeds 25%.

© Insurance Services Office, Inc., 2020
PEoitiite3lig 11155
IL 02 70 07 20

EXHIBIT "B"

COMMERCIAL GENERAL LIABILITY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

AMENDATORY ENDORSEMENT - PRODUCTS -

COMPLETED OPERATIONS HAZARD
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART
The following replaces Paragraph b.(3) of the definition of "products -completed operations hazard" in the DEFINITIONS Section:
(3) Products or operations for which the classification, listed in the Declarations, in a policy Schedule or in our manual of rules, states that the products -completed operations are subject to the General Aggregate Limit.

CG D3 09 02 19
© 2017 The Travelers Indemnity Company. All rights reserved. Page 1 of 1 Includes copyrighted material of Insurance Services Office, Inc. with its permission.

PEgbitit413T 111 5

EXHIBIT "B"

COMMERCIAL GENERAL LIABILITY

COMMERCIAL GENERAL LIABILITY COVERAGE FORM
CO•
CO
o
Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered.

Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations, and
any other person or organization qualifying as a Named
Insured under this policy. The words "we", "us" and
"our" refer to the company providing this insurance.

The word "insured" means any person or organization
qualifying as such under Section II — Who Is An
Insured.

Other words and phrases that appear in quotation
marks have special meaning. Refer to Section V —
Definitions.

SECTION I - COVERAGES
COVERAGE A — BODILY INJURY AND PROPERTY

DAMAGE LIABILITY

1. Insuring Agreement
a. We will pay those sums that the insured
becomes legally obligated to pay as damages
because of "bodily injury" or "property damage"
to which this insurance applies. We will have
the right and duty to defend the insured against
any "suit" seeking those damages. However,
we will have no duty to defend the insured
against any "suit" seeking damages for "bodily
injury" or "property damage" to which this
insurance does not apply. We may, at our
discretion, investigate any "occurrence" and
settle any claim or "suit" that may result. But:
(1) The amount we will pay for damages is
limited as described in Section III — Limits
Of Insurance; and
(2) Our right and duty to defend end when we
have used up the applicable limit of
insurance in the payment of judgments or
settlements under Coverages A or B or
medical expenses under Coverage C.

No other obligation or liability to pay sums or
perform acts or services is covered unless
explicitly provided for under Supplementary
Payments.
b. This insurance applies to "bodily injury" and
"property damage" only if:
(1) The "bodily injury" or "property damage" is
caused by an "occurrence" that takes place
in the "coverage territory";
(2) The "bodily injury" or "property damage"
occurs during the policy period; and
(3) Prior to the policy period, no insured listed
under Paragraph 1. of Section II — Who Is
An Insured and no "employee" authorized
by you to give or receive notice of an
"occurrence" or claim knew that the "bodily
injury' or "property damage" had occurred,
in whole or in part. If such a listed insured
or authorized "employee" knew, prior to the
policy period, that the "bodily injury" or
"property damage" occurred, then any
continuation, change or resumption of such
"bodily injury" or "property damage" during
or after the policy period will be deemed to
have been known prior to the policy period.
c. "Bodily injury" or "property damage" which
occurs during the policy period and was not,
prior to the policy period, known to have
occurred by any insured listed under Paragraph

1. of Section II — Who Is An Insured or any
"employee" authorized by you to give or receive
notice of an "occurrence" or claim, includes any
continuation, change or resumption of that
"bodily injury" or "property damage" after the
end of the policy period.
d. "Bodily injury" or "property damage" will be
deemed to have been known to have occurred
at the earliest time when any insured listed
under Paragraph 1. of Section II — Who Is An
Insured or any "employee" authorized by you to
give or receive notice of an "occurrence" or
claim:
(1) Reports all, or any part, of the "bodily
injury" or "property damage" to us or any
other insurer;
(2) Receives a written or verbal demand or
claim for damages because of the "bodily
injury" or "property damage"; or
(3) Becomes aware by any other means that
"bodily injury" or "property damage" has
occurred or has begun to occur.

CG T1 00 02 19
© 2017 The Travelers Indemnity Company. All rights reserved. Page 1 of 21 015889 Includes copyrighted material of Iri agg'iM(4f 5nc. with its permission.

EXHIBIT "B"

COMMERCIAL GENERAL LIABILITY
e. Damages because of "bodily injury" include
damages claimed by any person or organization
for care, loss of services or death resulting at
any time from the "bodily injury".

2. Exclusions
This insurance does not apply to:
a. Expected Or Intended Injury
"Bodily injury" or "property damage" expected or
intended from the standpoint of the insured.

This exclusion does not apply to "bodily injury"
or "property damage" resulting from the use of
reasonable force to protect persons or property.
b. Contractual Liability
"Bodily injury" or "property damage" for which
the insured is obligated to pay damages by
reason of the assumption of liability in a
contract or agreement. This exclusion does not
apply to liability for damages:
(1) That the insured would have in the absence
of the contract or agreement; or
(2) Assumed in a contract or agreement that is
an "insured contract", provided that the
"bodily injury' or "property damage" occurs
subsequent to the execution of the contract
or agreement. Solely for the purposes of
liability assumed in an "insured contract",
reasonable attorneys' fees and necessary
litigation expenses incurred by or for a party
other than an insured will be deemed to be
damages because of "bodily injury" or
"property damage", provided that:
(a) Liability to such party for, or for the
cost of, that party's defense has also
been assumed in the same "insured
contract"; and
(b) Such attorneys' fees and litigation
expenses are for defense of that party
against a civil or alternative dispute
resolution proceeding in which
damages to which this insurance
applies are alleged.
c. Liquor Liability
"Bodily injury" or "property damage" for which
any insured may be held liable by reason of:
(1) Causing or contributing to the intoxication
of any person;
(2) The furnishing of alcoholic beverages to a
person under the legal drinking age or
under the influence of alcohol; or
(3) Any statute, ordinance or regulation relating
to the sale, gift, distribution or use of
alcoholic beverages.

This exclusion applies only if you are in the
business of manufacturing, distributing, selling,
serving or furnishing alcoholic beverages. For
the purposes of this exclusion, permitting a
person to bring alcoholic beverages on your
premises, for consumption on your premises,
whether or not a fee is charged or a license is
required for such activity, is not by itself
considered the business of selling, serving or
furnishing alcoholic beverages.
d. Workers' Compensation And Similar Laws
Any obligation of the insured under a workers'
compensation, disability benefits or
unemployment compensation law or any similar
law.
e. Employer's Liability
"Bodily injury" to:
(1) An "employee" of the insured arising out of
and in the course of:
(a) Employment by the insured; or
(b) Performing duties related to the
conduct of the insured's business; or
(2) The spouse, child, parent, brother or sister
of that "employee" as a consequence of
Paragraph (1) above.

This exclusion applies whether the insured may
be liable as an employer or in any other capacity
and to any obligation to share damages with or
repay someone else who must pay damages
because of the injury.

This exclusion does not apply to liability
assumed by the insured under an "insured
contract".
f. Pollution
(1) "Bodily injury' or "property damage" arising
out of the actual, alleged or threatened
discharge, dispersal, seepage, migration,
release or escape of "pollutants":
(a) At or from any premises, site or
location which is or was at any time
owned or occupied by, or rented or
loaned to, any insured. However, this
subparagraph does not apply to:
(i) "Bodily injury" if. sustained within a
building and caused by smoke,
fumes, vapor orsoot produced by
or originating from equipment that

© 2017 The Travelers Indemnity Company. All rights reserved.

Includes copyrighted materiap)&3641596e4c4ilajge, Inc. with its permission.

CG T1 00 02 19

EXHIBIT "B"

COMMERCIAL GENERAL LIABILITY
•
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In
o
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0 •
is used to heat, cool or dehumidify
the building, or produced by or
originating from equipment that is
used to heat water for personal
use by the building's occupants or
their guests;
(ii) "Bodily injury" or "property
damage" for which you may be
held liable, if you are a contractor
and the owner or lessee of such
premises, site or location has been
added to your policy as an
additional insured with respect to
your ongoing operations performed
for that additional insured at that
premises, site or location and such
premises, site or location is not
and never was owned or occupied
by, or rented or loaned to, any
insured, other than that additional
insured; or
(iii) "Bodily injury' or "property
damage" arising out of heat,
smoke or fumes from a "hostile
fire";
(b) At or from any premises, site or
location which is or was at any time
used by or for any insured or others for
the handling, storage, disposal,
processing or treatment of waste;
(c) If such "pollutants" are or were at any
time transported, handled, stored,
treated, disposed of, or processed as
waste by or for:
(i) Any insured; or
(ii) Any person or organization for
whom you may be legally
responsible;
(d) At or from any premises, site or
location on which any insured or any
contractors or subcontractors working
directly or indirectly on any insured's
behalf are performing operations if the
"pollutants" are brought on or to the
premises, site or location in connection
with such operations by such insured,
contractor or subcontractor. However,
this subparagraph does not apply to:
(i) "Bodily injury" or "property
damage" arising out of the escape
of fuels, lubricants or other
operating fluids which are needed
to perform the normal electrical,
hydraulic or mechanical functions
necessary for the operation of
"mobile equipment" or its parts, if
such fuels, lubricants or other
operating fluids escape from a
vehicle part designed to hold, store
or receive them. This exception
does not apply if the "bodily injury"
or "property damage" arises out of
the intentional discharge, dispersal
or release of the fuels, lubricants
or other operating fluids, or if such
fuels, lubricants or other operating
fluids are brought on or to the
premises, site or location with the
intent that they be discharged,
dispersed or released as part of
the operations being performed by
such insured, contractor or
subcontractor;
(ii) "Bodily injury" or "property
damage" sustained within a
building and caused by the release
of gases, fumes or vapors from
materials brought into that building
in connection with operations being
performed by you or on your behalf
by a contractor or subcontractor; or
(iii) "Bodily injury" or "property
damage" arising out of heat,
smoke or fumes from a "hostile
fire"; or
(e) At or from any premises, site or
location on which any insured or any
contractors or subcontractors working
directly or indirectly on any insured's
behalf are or were at any time
performing operations to test for,
monitor, clean up, remove, contain,
treat, detoxify or neutralize, or in any
way respond to, or assess the effects
of, "pollutants".
(2) Any Toss, cost or expense arising out of
any:
(a) Request, demand, order or statutory or
regulatory requirement that any insured
or others test for, monitor, clean up,
remove, contain, treat, detoxify or
neutralize, or in any way respond to, or
assess the effects of, "pollutants"; or
CG T1 00 02 19 ©2017 The Travelers Indemnity Company. All rights reserved. 015890 Includes copyrighted material of lipaityjbalitaTalfriganc. with its permission.

EXHIBIT "B"

COMMERCIAL GENERAL LIABILITY

9. (b) Claim or suit by or on behalf of any
governmental authority or any other
person or organization because of
testing for, monitoring, cleaning up,
removing, containing, treating,
detoxifying or neutralizing, or in any
way responding to, or assessing the
effects of, "pollutants".

Aircraft, Auto Or Watercraft
"Bodily injury" or "property damage" arising out
of the ownership, maintenance, use or
entrustment to others of any aircraft, "auto" or
watercraft owned or operated by or rented or
loaned to any insured. Use includes operation
and "loading or unloading".

This exclusion applies even if the claims
against any insured allege negligence or other
wrongdoing in the supervision, hiring,
employment, training or monitoring of others by
that insured, if the "occurrence" which caused
the "bodily injury" or "property damage" involved
the ownership, maintenance, use or
entrustment to others of any aircraft, "auto" or
watercraft that is owned or operated by or
rented or loaned to any insured.

This exclusion does not apply to:
(1) A watercraft while ashore on premises you
own or rent;
(2) A watercraft you do not own that is:
(a) 50 feet long or less; and
(b) Not being used to carry any person or
property for a charge;
(3) Parking an "auto" on, or on the ways next
to, premises you own or rent, provided the
"auto" is not owned by or rented or loaned
to you or the insured;
(4) Liability assumed under any "insured
contract" for the ownership, maintenance or
use of aircraft or watercraft;
(5) "Bodily injury" or "property damage" arising
out of:
(a) The operation of machinery or
equipment that is attached to, or part
of, a land vehicle that would qualify as
"mobile equipment" under the definition
of "mobile equipment" if such land
vehicle were not subject to a
compulsory or financial responsibility
law, or other motor vehicle insurance
law, where it is licensed or principally
garaged; or
(b) The operation of any of the machinery
or equipment listed in Paragraph f.(2)
or f.(3) of the definition of "mobile
equipment"; or
(6) An aircraft that is:
(a) Chartered with a pilot to any insured;
(b) Not owned by any insured; and
(c) Not being used to carry any person or
property for a charge.
h. Mobile Equipment
"Bodily injury" or "property damage" arising out
of:
(1) The transportation of "mobile equipment"
by an "auto" owned or operated by or
rented or loaned to any insured; or
(2) The use of "mobile equipment" in, or while
in practice for, or while being prepared for,
any prearranged racing, speed, demolition,
or stunting activity
i. War
"Bodily injury" or "property damage" arising out
J•
of:
(1) War, including undeclared or civil war;
(2) Warlike action by a military force, including
action in hindering or defending against an
actual or expected attack, by any
government, sovereign or other authority
using military personnel or other agents; or
(3) Insurrection, rebellion, revolution, usurped
power, or action taken by governmental
authority in hindering or defending against
any of these.

Damage To Property
"Property damage" to:
(1) Property you own, rent, or occupy,
including any costs or expenses incurred
by you, or any other person, organization or
entity, for repair, replacement,
enhancement, restoration or maintenance
of such property for any reason, including
prevention of injury to a person or damage
to another's property;
(2) Premises you sell, give away or abandon, if
the "property damage" arises out of any
part of those premises;
(3) Property loaned to you;
(4) Personal property in the care, custody or
control of the insured;

© 2017 The Travelers Indemnity Company. All rights reserved. CG T1 00 02 19 Includes copyrighted materiapeffiteffillIcfte, Inc. with its permission.

EXHIBIT "B"

COMMERCIAL GENERAL LIABILITY
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(5) That particular part of real property on
which you or any contractors or
subcontractors working directly or indirectly
on your behalf are performing operations, if
the "property damage" arises out of those
operations; or
(6) That particular part of any property that
must be restored, repaired or replaced
because "your work" was incorrectly
performed on it.

Paragraphs (1), (3) and (4) of this exclusion do
not apply to "premises damage". A separate
limit of insurance applies to "premises damage"
as described in Paragraph 6. of Section III —
Limits Of Insurance.

Paragraph (2) of this exclusion does not apply if
the premises are "your work" and were never
occupied, rented or held for rental by you.

Paragraphs (3), (4), (5) and (6) of this
exclusion do not apply to liability assumed
under a sidetrack agreement.

Paragraph (6) of this exclusion does not apply
to "property damage" included in the "products -
completed operations hazard".
k. Damage To Your Product
"Property damage" to "your product" arising out
of it or any part of it.

I. Damage To Your Work
"Property damage" to "your work" arising out of
it or any part of it and included in the "products=
completed operations hazard".

This exclusion does not apply if the damaged
work or the work out of which the damage
arises was performed on your behalf by a
subcontractor.
m. Damage To Impaired Property Or Property
Not Physically Injured
"Property damage" to "impaired property" or
property that has not been physically injured,
arising out of:
(1) A defect, deficiency, inadequacy or
dangerous condition in "your product" or
"your work"; or
(2) A delay or failure by you or anyone acting
on your behalf to perform a contract or
agreement in accordance with its terms.

This exclusion does not apply to the loss of use
of other property arising out of sudden and
accidental physical injury to "your product" or
"your work" after it has been put to its intended
use.
n. Recall Of Products, Work Or Impaired
Property
Damages claimed for any loss, cost or expense
incurred by you or others for the loss of use,
withdrawal, recall, inspection, repair,
replacement, adjustment, removal or disposal
of:
(1) "Your product";
(2) "Your work"; or
(3) "Impaired property";
if such product, work, or property is withdrawn
or recalled from the market or from use by any
person or organization because of a known or
suspected defect, deficiency, inadequacy or
dangerous condition in it.
o. Personal And Advertising Injury
"Bodily injury" arising out of "personal and
advertising injury".
p. Electronic Data
Damages arising out of the loss of, loss of use
of, damage to, corruption of, inability to access,
or inability to manipulate "electronic data".

However, this exclusion does not apply to
liability for damages because of "bodily injury".

Unsolicited Communication
"Bodily injury" or "property damage" arising out
of any actual or alleged violation of any law that
restricts or prohibits the sending, transmitting
or distributing of "unsolicited communication".

T. Access Or Disclosure Of Confidential Or
Personal Information
"Bodily injury" or "property damage" arising out
of any access to or disclosure of any person's
or organization's confidential or personal
information.
q•
s. Asbestos
(1) "Bodily injury" or "property damage" arising
out of the actual or alleged presence or
actual, alleged or threatened dispersal of
asbestos, asbestos fibers or products
containing asbestos, provided that the
"bodily injury" or "property damage" is
caused or contributed to by the hazardous
properties of asbestos.

CG T1 00 02 19
© 2017 The Travelers Indemnity Company. All rights reserved. 015891 Includes copyrighted material of ireseitsvanoegre5Inc. with its permission.

EXHIBIT "B"

COMMERCIAL GENERAL LIABILITY
(2) "Bodily injury" or "property damage" arising
out of the actual or alleged presence or
actual, alleged or threatened dispersal of
any solid, liquid, gaseous or thermal irritant
or contaminant, including smoke, vapors,
soot, fumes, acids, alkalis, chemicals and
waste, and that are part of any claim or
"suit" which also alleges any "bodily injury"
or "property damage" described in
Paragraph (1) above.
(3) Any loss, cost or expense arising out of
any:
(a) Request, demand, order or statutory or
regulatory requirement that any insured
or others test for, monitor, clean up,
remove, contain, treat, detoxify or
neutralize, or in any way respond to, or
assess the effects of, asbestos,
asbestos fibers or products containing
asbestos; or
(b) Claim or suit by or on behalf of any
governmental authority or any other
person or organization because of
testing for, monitoring, cleaning up,
removing, containing, treating,
detoxifying or neutralizing, or in any
way responding to, or assessing the
effects of, asbestos, asbestos fibers or
products containing asbestos.
t. Employment -Related Practices
"Bodily injury" to:
(1) A person arising out of any:
(a) Refusal to employ that person;
(b) Termination of that person's
employment; or
(c) Employment -related practice, policy,
act or omission, such as coercion,
demotion, evaluation, reassignment,
discipline, failure to promote or
advance, harassment, humiliation,
discrimination, libel, slander, violation
of the person's right of privacy,
malicious prosecution or false arrest,
detention or imprisonment applied to or
directed at that person, regardless of
whether such practice, policy, act or
omission occurs, is applied or is
committed before, during or after the
time of that person's employment; or
(2) The spouse, child, parent, brother or sister
of that person as a consequence of "bodily
injury" to that person at whom any of the
employment -related practices described in
Paragraph (a), (b),or (c) above is directed.

This exclusion applies whether the insured may
be liable as an employer or in any other capacity
and to any obligation to share damages with or
repay someone else who must pay damages
because of the "bodily injury".

Exclusions c. through n. do not apply to "premises
damage". A separate limit of insurance applies to
"premises damage" as described in Paragraph 6. of
Section III — Limits Of Insurance.

COVERAGE B — PERSONAL AND ADVERTISING

INJURY LIABILITY

1. Insuring Agreement
a. We will pay those sums that the insured
becomes legally obligated to pay as damages
because of "personal and advertising injury" to
which this insurance applies. We will have the
right and duty to defend the insured against any
"suit" seeking those damages. However, we will
have no duty to defend the insured against any
"suit" seeking damages for "personal and
advertising injury" to which this insurance does
not apply. We may, at our discretion,
investigate any offense and settle any claim or
"suit" that may result. But:
(1) The amount we will pay for damages is
limited as described in Section III — Limits
Of Insurance; and
(2) Our right and duty to defend end when we
have used up the applicable limit of
insurance in the payment of judgments or
settlements under Coverages A or B or
medical expenses under Coverage C.

No other obligation or liability to pay sums or
perform acts or services is covered unless
explicitly provided for under Supplementary
Payments.

This insurance applies to "personal and
advertising injury" caused by an offense arising
out of your business but only if the offense was
committed in the "coverage territory" during the
policy period.

2. Exclusions
This insurance does not apply to:
a. Knowing Violation Of Rights Of Another
"Personal and advertising injury" caused by or
at the direction of the insured with the
knowledge that the act would violate the rights
of another and would inflict "personal and
advertising injury".
b.

© 2017 The Travelers Indemnity Company. All rights reserved.

Includes copyrighted materF3 ' Wfice, Inc. with its permission.

CG T1 00 02 19

EXHIBIT "B"

COMMERCIAL GENERAL LIABILITY
•
Crl
This exclusion does not apply to "personal
injury" caused by malicious prosecution.
b. Material Published With Knowledge Of
Falsity
"Personal and advertising injury" arising out of
oral or written publication, including publication
by electronic means, of material, if done by or at
the direction of the insured with knowledge of
its falsity.
c. Material Published Or Used Prior To Policy
Period
(1) "Personal and advertising injury" arising out
of oral or written publication, including
publication by electronic means, of material
whose first publication took place before
the beginning of the policy period; or
(2) "Advertising injury" arising out of
infringement of copyright, "title" or "slogan"
in your "advertisement" whose first
infringement in your "advertisement" was
committed before the beginning of the
policy period.
d. Criminal Acts
"Personal and advertising injury" arising out of a
criminal act committed by or at the direction of
the insured.
e. Contractual Liability
"Personal and advertising injury" for which the
insured has assumed liability in a contract or
agreement. This exclusion does not apply to
liability for damages:
(1) That the insured would have in the absence
of the contract or agreement; or
(2) Because of "personal injury" assumed by
you in a contract or agreement that is an
"insured contract", provided that the
"personal injury" is caused by an offense
committed subsequent to the execution of
the contract or agreement. Solely for the
purposes of liability assumed by you in an
"insured contract", reasonable attorneys'
fees and necessary litigation expenses
incurred by or for a party other than an
insured will be deemed to be damages
because of "personal injury", provided that:
(a) Liability to such party for, or for the
cost of, that party's defense has also
been assumed by you in the same
"insured contract"; and
(b) Such attorneys' fees and litigation
expenses are for defense of that party
against a civil or alternative dispute
resolution proceeding in which
damages to which this insurance
applies are alleged.
f. Breach Of Contract
"Advertising injury" arising out of a breach of
contract.
g.

Quality Or Performance Of Goods - Failure
To Conform To Statements
"Advertising injury" arising out of the failure of
goods, products or services to conform with
any statement of quality or performance made
in your "advertisement".
h. Wrong Description Of Prices
"Advertising injury" arising out of the wrong
description of the price of goods, products or
services stated in your "advertisement".
i. Intellectual Property
"Personal and advertising injury" arising out of
any actual or alleged infringement or violation of
any of the following rights or laws, or any other
"personal and advertising injury" alleged in any
claim or "suit" that also alleges any such
infringement or violation:
1•
(1)
(2)
(3)
(4)
(5)
(6)
Copyright;
Patent;
Trade dress;
Trade name;
Trademark;
Trade secret; or
(7) Other intellectual property rights or laws.

This exclusion does not apply to:
(1) "Advertising injury" arising out of any actual
or alleged infringement or violation of
another's copyright, "title" or "slogan" in
your "advertisement"; or
(2) Any other "personal and advertising injury"
alleged in any claim or "suit" that also
alleges any such infringement or violation
of another's copyright, "title" or "slogan" in
your "advertisement".

Insureds In Media And Internet Type
Businesses
"Personal and advertising injury" caused by an
offense committed by an insured whose
business is:
(1) Advertising, "broadcasting" or publishing;
CG T1 00 02 19
© 2017 The Travelers Indemnity Company. All rights reserved. 015892 Includes copyrighted material of irpgsicsontrveif c1i59nc. with its permission.

EXHIBIT "B"

COMMERCIAL GENERAL LIABILITY
(2) Designing or determining content of
websites for others; or
(3) An Internet search, access, content or
service provider.

However, this exclusion does not apply to.

Paragraphs a.(1), (2) and (3) of the definition of
"personal injury".

For the purposes of this exclusion:
(1) Creating and producing correspondence
written in the conduct of your business,
bulletins, financial or annual reports, or
newsletters about your goods, products or
services will not be considered the
business of publishing; and
(2) The placing of frames, borders or links, or
advertising, for you or others anywhere on
the Internet will not, by itself, be considered
the business of advertising, "broadcasting"
or publishing.
k. Electronic Chatrooms Or Bulletin Boards
"Personal and advertising injury" arising out of
•an electronic chatroom or bulletin board the
insured hosts or owns, or over which the
insured exercises control.

I. Unauthorized Use Of Another's Name Or
Product
"Personal and advertising injury" arising out of
the unauthorized use of another's name or
product in your e-mail address, domain name or
metatag, or any other similar tactics to mislead
another's potential customers.
m. Pollution
"Personal and advertising injury" arising out of
the actual, alleged or threatened discharge,
dispersal, seepage, migration, release or
escape of "pollutants" at any time.
n. Pollution -Related
Any loss, cost or expense arising out of any:
(1) Request, demand, order or statutory or
regulatory requirement that any insured or
others test for, monitor, clean up, remove,
contain, treat, detoxify or neutralize, or in
any way respond to, or assess the effects
of, "pollutants"; or
(2) Claim or suit by or on behalf of any
governmental authority or any other person
or organization because of testing for,
monitoring, cleaning up, removing,
containing, treating, detoxifying or
neutralizing, or in any way responding to,or
assessing the effects of, "pollutants".
o. War
"Personal and advertising injury" arising out of:
(1) War, including undeclared or civil war;
(2) Warlike action by a military force, including
action in hindering or defending against an
actual or expected attack, by any
government, sovereign or other authority
using military personnel or other agents; or
(3) Insurrection, rebellion, revolution, usurped
power, or action taken by governmental
authority in hindering or defending against
any of these.
p. Unsolicited Communication
"Personal and advertising injury" arising out of
any actual or alleged violation of any law that
restricts or prohibits the sending, transmitting
or distributing of "unsolicited communication".

Access Or Disclosure Of Confidenital Or
Personal Information
"Personal and advertising injury" arising out of
any access to or disclosure of any person's or
organization's confidential or personal
information.

T. Asbestos
(1) "Personal and advertising injury" arising out
of the actual or alleged presence or actual,
alleged or threatened dispersal of asbestos,
asbestos fibers or products containing
asbestos, provided that the "personal and
advertising injury" is caused or contributed
to by the hazardous properties of asbestos.
(2) "Personal and advertising injury" arising out
of the actual or alleged presence or actual,
alleged or threatened dispersal of any solid,
liquid, gaseous or thermal irritant or
contaminant, including smoke, vapors,
soot, fumes, acids, alkalis, chemicals and
waste, and that are part of any claim or
"suit" which also alleges any "personal and
advertising injury" described in Paragraph
(1) above.
(3) Any loss, cost or expense arising out of
any:
(a) Request, demand, order or statutory or
regulatory requirement that any insured
or others test for, monitor, clean up,
remove, contain, treat, detoxify or
neutralize, or in any way respond to, or
q.

© 2017 The Travelers Indemnity Company. All rights reserved.

Includes copyrighted materia iC e; Inc. with its permission.

CG T1 00 02 19

EXHIBIT "B"

COMMERCIAL GENERAL LIABILITY
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assess the effects of, asbestos,
asbestos fibers or products containing
asbestos; or
(b) Claim or suit by or on behalf of any
governmental authority or any other
person or organization because of
testing for, monitoring, cleaning up,
removing, containing, treating,
detoxifying or neutralizing, or in any
way responding to, or assessing the
effects of, asbestos, asbestos fibers or
products containing asbestos.
s. Employment -Related Practices
"Personal injury" to:
(1) A person arising out of any:
(a) Refusal to employ that person;
(b) Termination of that person's
employment; or
(c) Employment -related practice, policy,
act or omission, such as coercion,
demotion, evaluation, reassignment,
discipline, failure to promote or
advance, harassment, humiliation,
discrimination, libel, slander, violation
of the person's right of privacy,
malicious prosecution or false arrest,
detention or imprisonment applied to or
directed at that person, regardless of
whether such practice, policy, act or
omission occurs, is applied or is
committed before, during or after the
time of that person's employment; or
(2) The spouse, child, parent, brother or sister
of that person as a consequence of
"personal injury" to that person at whom
any of the employment -related practices
described in Paragraph (a), (b), or (c)
above is directed.

This exclusion applies whether the insured may
be liable as an employer or in any other capacity
and to any obligation to share damages with or
repaysomeone else who must pay damages
because of the. "personal injury".

COVERAGE C — MEDICAL PAYMENTS

1. Insuring Agreement
a. We will pay medical expenses as described
below for "bodily injury" caused by an accident:
(1) On premises you own or rent;
(2) On ways next to premises you own or rent;
or
b.
(3) Because of your operations;
provided that:
(a) The accident takes place in the "coverage
territory" and during the policy period;
(b) The expenses are incurred and reported to
us within one year of the date of the
accident; and
(c) The injured person submits to examination,
at our expense, by physicians of our choice
as often as we reasonably require.

We will make these payments regardless of
fault. These payments will not exceed the
applicable limit of insurance. We will pay
reasonable expenses for:
(1) First aid administered at the time of an
accident;
(2) Necessary medical, surgical, X-ray and
dental services, including prosthetic
devices; and
Necessary ambulance,
professional nursing and funeral

2. Exclusions
(3)
hospital,
services.

We will not pay expenses for "bodily injury":
a. Any Insured
To any insured, except "volunteer workers".
b. Hired Person
To a person hired to do work for or on behalf of
any insured or a tenant of any insured.
c. Injury On Normally Occupied Premises
To a person injured on that part of premises
you own or rent that the person normally
occupies.
d. Workers' Compensation And Similar Laws
To a person, whether or not an "employee" of
any insured, if benefits for the "bodily injury" are
payable or must be provided under a workers'
compensation or disability benefits law or a
similar law.
e. Athletics Activities
To a person injured while practicing, instructing
or participating in any physical exercises or
games, sports, or athletic contests.
f. Products -Completed Operations Hazard
Included within the "products -completed
operations hazard".

Coverage A Exclusions
Excluded under Coverage A.
g.

CG T1 00 02 19 © 2017 The Travelers Indemnity Company. All rights reserved. 015893 Includes copyrighted material of Irfsl j' 43t1 C 5nc, with its permission.

EXHIBIT "B"

COMMERCIAL GENERAL LIABILITY

SUPPLEMENTARY PAYMENTS

1. We will pay, with respect to any claim we
investigate or settle, or any "suit" against an insured we defend:
a. All expenses we incur.
b. Up to $2,500 for the cost of bail bonds required
because of accidents or traffic law violations
arising out of the use of any vehicle to which
the Bodily Injury Liability Coverage applies. We
do not have to furnish these bonds.
c. The cost of bonds to release attachments, but
only for bond amounts within the applicable limit
of insurance. We do not have to furnish these
bonds.
d. All reasonable expenses incurred by the
insured at our request to assist us in the
investigation or defense of the claim or "suit",
including actual loss of earnings up to $500 a
day because of time off from work.
e. All court costs taxed against the insured in the
"suit". However, these payments do not include
attorneys' fees or attorneys' expenses taxed
against the insured.
f. Prejudgment interest awarded against the
insured on that part of the judgment we pay. If
we make an offer to pay the applicable limit of
insurance, we will not pay any prejudgment
interest based on that period of time after the
offer.
g.

All interest on the full amount of any judgment
that accrues after entry of the judgment and
before we have paid, offered to pay, or
deposited in court the part of the judgment that
is within the applicable limit of insurance.

These payments will not reduce the limits of
insurance.

2. If we defend an insured against a "suit" and an
indemnitee of the insured is also named as a party
to the "suit", we will defend that indemnitee if all of the following conditions are met:
a. The "suit" against the indemnitee seeks
damages for which the insured has assumed
the liability of the indemnitee in a contract or
agreement that is an "insured contract";
b. This insurance applies to such liability assumed
by the insured;
c. The obligation to defend, or the cost of the
defense of, that indemnitee, has also been
assumed by the insured in the same "insured
contract";
d. The allegations in the "suit" and the information
we know about the "occurrence" or offense are
such that no conflict appears to exist between
the interests of the insured and the interests of
the indemnitee;
e. The indemnitee and the insured ask us to
conduct and control the defense of that
indemnitee against such "suit" and agree that
we can assign the same counsel to defend the
insured and the indemnitee; and
f. The indemnitee:
(1) Agrees in writing to:
(a) Cooperate with us in the investigation,
settlement or defense of the "suit";
(b) Immediately send us copies of any
demands, notices, summonses or legal
papers received inconnection with the
"suit";
(c) Notify any other insurer whose
coverage is available to the indemnitee;
and
(d) Cooperate with us with respect to
coordinating other applicable insurance
available to the indemnitee; and
(2) Provides us with written authorization to:
(a) Obtain records and other information
related to the "suit"; and
(b) Conduct and control the defense of the
indemnitee in such "suit".

So Tong as the above conditions are met, attorneys'
fees incurred by us in the defense of that
indemnitee, necessary litigation expenses incurred
by us and necessary litigation expenses incurred by
the indemnitee at our request will be paid as
Supplementary Payments. Notwithstanding the
provisions of Paragraph 2:b.(2) of Section I —
Coverages — Coverage A — Bodily Injury And
Property Damage Liability or Paragraph 2.e. of
Section I — Coverages — Coverage B — Personal
And Advertising Injury Liability, such payments will
not be deemed to be damages for "bodily injury",
"property damage" or "personal injury", and will not
reduce the limits of insurance.

Our obligation to defend an insured's indemnitee
and to pay for attorneys' fees and necessary
litigation expenses as Supplementary Payments
ends when: