Chino City Council
March 21, 2023

“MILITARY EQUIPMENT” as defined by AB 481 as of February 2023

1. Unmanned, remotely piloted, powered aerial or ground vehicles (Category 1) a. Description, quantity, capabilities, and purchase cost:
i. DJI MATRICE M210, cost: approximately $8,500 each, quantity: 2. UAS that weighs approximately 10.5 pounds has infrared capability and is able to record video and audio with approximately 30 minutes of flight time. ii. DJI PHANTOM 4 PRO, cost: approximately $800 each, quantity: 2. UAS that weighs approximately 3 pounds and has video recording capabilities, approximately 30 minutes of flight time.
iii. DJI MAVIC 2 ENTERPRISE ADVANCED, cost: approximately $3,500 each, quantity: 2. UAS that weighs approximately 2.5 pounds has infrared capability and is able to record video and audio with approximately 30 minutes of flight time.
iv. DJI MAVIC AIR, cost: approximately $700 each, quantity: 2. UAS that weighs approximately 1 pound and is able to record video and audio with approximately 20 minutes of flight time.
b. Purpose: To be deployed when its view would assist officers or incident commanders with the following situations, in compliance with FAA regulations and with respect for constitutional rights and privacy, which include but are not limited to: Crime scene documentation, traffic collision scene documentation, searches for missing persons, disaster response, searches for suspects who are believed to be hiding within a defined incident perimeter, in support of search warrant or tactical operations such as barricaded suspects, mapping of critical infrastructure for Homeland Security purposes, security operations at larger public gatherings, where images are not recorded except for criminal behavior, critical incident management, enforcement of City Municipal Codes related to Health and Safety, such as fireworks, aerial imaging services to other units of government. c. Authorized Use : Only assigned operators who have completed the required training shall be permitted to operate UAS equipment during approved missions. d. Expected Life Span: All UAS equipment, approximately 3-5 years. e. Fiscal Impac t: Annual maintenance and battery replacem ent cost is approximately $400.
f. Training: All Department UAS operators are licensed by the Federal Aviation Administration for UAS operation. In addition, each operator must attend a 40-hour department training and ongoing quarterly training.
g. Legal and Pr ocedural Rules : Use is established in the Unmanned Aerial System’s Policy and FAA Regulation 14 CFR Part 107. It is the policy of the Chino Police Department to utilize UAS only for official law enforcement purposes, and in a manner that respects the privacy of our commu nity, pursuant to State and Federal law.

2. Unmanned, remotely piloted, powered aerial or ground vehicles (Category 1) a. Description, quantity, capabilities, and purchase cost:
i. ICOR Mini -Caliber robot, cost: approximately $80,000, quantity: 1.

Designed for rap id tactical missions, the robot is simple to operate and

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quick to deploy for searching rooms, hallways, stairwells, and confined spaces. With rubber tracks and articulating front and rear flippers, the Mini- CALIBER effortlessly climbs stairs. It also inclu des an extendible rotating claw arm that simplifies opening door handles.
ii. Recon Robotics, Throwbot XT, cost: approximately $12,000 each, quantity:

2. The Throwbot® XT is a throwable, mobile micro-robot that provides both audio and video reconnaissance of d angerous environments. Personnel can use the new micro -robot to quickly gain situational awareness during high-risk operations and surveillance missions.
b. Purpose: To be deployed when its capabilities would assist officers or incident commanders when dealing with tactical or lifesaving operations. The robot can be directed to move through a structure and transmit real-time video and audio. These reconnaissance features can locate and identify subjects, confirm presence of hostages, and reveal building layout. These robotic technologies may be used in many different circumstances including but not limited to:

Searches for suspects who are believed to be hiding within a defined incident perimeter, in support of search warrant or tactical operations such as bar ricaded suspects, hostage rescue incident, crisis negotiations, disaster response.
c. Authorized Use: These robotic technologies are primarily used by trained SWAT officers, however, may be utilized by additional personnel as needed. d. Expected Life Span: Approximately 5-10 years.
e. Fiscal Impact: Warranties for these products are limited (2 years). Maintenance costs are then considered out of pocket and can range from $500 and up for repairs.
f. Training: While not required by law, specialized training in the utilization of these devices is recommended. SWAT personnel train with these devices regularly and maintain their serviceability.
g. Legal and Procedural Rules: It is the policy of the Chino Police Depa rtment to utilize a robot only for official law enforcement purposes, and in a manner that respects the privacy of our community, pursuant to State and Federal law.

3. Command and Control Vehicles (Category 5)
a. Description, quantity, capabilities, and purchase cost:

LENCO BEARCAT, G2, cost: approximately $273,000, quantity: 1. The Lenco Bearcat, G2, is an armored vehicle that seats 10-12 personnel with open floor plan that allows for rescue of downed personnel or civilians. The Bearcat G2 has increased ground c learance and a robust suspension which allows for an emergency response to almost any situation. It can stop various projectiles, which provides greater safety to the community and officers beyond the protection level of shield and personal body armor.

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b. Purpose: To be used in response to critical incidents to enhance officer and community safety, improve scene containment and stabilization, and assist in resolving critical incidents.
c. Authorized Use: The use of armored vehicles shall only be authorized by a watch commander or SWAT commander, based on the specific circumstances of a given critical incident. Armored vehicles shall be used only by officers trained in their deployment and in a manner consistent with department policy and training. d. Lifespan: Lenco Bearcat model G2, approximately 15 years. e. Fiscal Impact: Annual maintenance cost of approximately $1,000. f. Training: All driver/operators shall attend formalized instruction and be trained in vehicle operations and practical driving instruction.
g. Legal and Procedural Rules: Use is established in the Vehicle Use Policy. It is the policy of the Department to utilize armored vehicles only for official law enforcement purposes, and pursuant to State and Federal law.

4. Command and Control Vehicles (Category 5)
a. Description, quantity, capabilities, and purchase cost:

Mobile Command Center (MCC): A 2002 Workhorse RV, cost: approximately $195,000, quantity: 1. The MCC is a retrofit recreational vehicle containing a mobile office that provides shelter, access to police department computer systems, and restroom facilities for extended events. The MCC can also be utilized for SWAT/CNT and other critical incidents, preplanned large event s, searching for missing persons, natural disasters, and community events. b. Purpose: To be used based on the specific circumstances of a given critical incident, large event, operations, natural disaster, or community event. c. Authorized Use: The MCC shall be used by officers trained in its deployment and in a manner consistent with department policy and training. d. Lifespan: Approximately 15 -year lifespan on chassis and vehicle structure.

Upgrades needed to maintain IT systems.
e. Fiscal Impact: Annual maintenance cost is approximately $3,500. f. Training: The driver/operator shall receive training in the safe handling of the vehicle on a closed training course. Once the driver/operator has shown competence in vehicle handling, they will be allowed to deploy the vehicle for department authorized use.
g. Legal and Procedural Rules : Use is established in the Crisis Response Unit Policy. It is the policy of the Department to use the MCC only for official law enforcement purposes, and in accordance with California State law regarding the operation of motor vehicles.

5. Command and Control Vehicles (Category 5)
a. Description, quantity, capabilities, and purchase cost:
b. Tactical Response Vehicle (TRV) : A 201 7 Chevrolet Suburban on a 3500 Chassis, cost: approximately $83,000, quantity: 1. The TRV is used as a mobile command and control vehicle for extended operations and critical incidents. The

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TRV is outfitted with specialized equipment to support field personnel and incident commanders.
c. Purpose: To be used to facilitate command and control at critical incidents, as a rapidly deployable response vehicle. It supports the function of incident commanders until the scene is stabilized or when extended, the MCC is deployed. d. Authorized Use : The TRV shall be deployed by officers authorized for its deployment by the Watch Commander or their designee and in a manner consistent with department policy and training.
e. Lifespan: Approximately 10-year lifespan.
f. Fiscal Impact: Annual maintenance cost is approximately $1,000. g. Training: The driver/operator shall receive training or instruction in the safe handling of the vehicle.
h. Legal and Procedural Rules: Use is established in the Vehicle Use Policy. It is the policy of the department to use the TRV only for official law enforcement purposes, and in accordance with California State law regarding the operation of motor vehicles.

6. Command and Control Vehicles (Category 5)
a. Description, quantity, capabilities, and purchase cost:
b. Special Weapons and Tactics (SWAT) Team Van: A 2016 Ford Transit Van 350 Chassis, cost: approximately $39,000, quantity: 1. The SWAT Team Van is used to transport specialized SWAT Team equipment and was specially built to do so. c. Purpose: To be used for the transportation of specialized SWAT Team equipment for training and for authorized SWAT Team operations.
d. Authorized Use: The SWAT Team Van shall be used by officers authorized for its deployment by the SWAT Team Commander or their designee and in a manner consistent with department policy and training.
e. Lifespan: Approximately 10-year lifespan.
f. Fiscal Impact: Annual maintenance cost is approximately $1,000. g. Training: The driver/operator shall receive training in the safe handling of the vehicle. Once the driver/operator has shown competence in vehicle handling, they will be allowed to deploy the vehicle for department authorized use. h. Legal and Procedural Rules: Use is established in the Vehicle Use Policy. It is the policy of the department to use the SWAT Team V an only for official law enforcement purposes, and in accordance with California State law regarding the operation of motor vehicles.

7. Command and Control Vehicles (Category 5)
a. Description, quantity, capabilities, and purchase cost:
b. Crisis Negotiation Team (CNT) Van: A 2020 Ford Transit Van 350 Chassis, cost:
approximately $41,000, quantity: 1. The CNT Van is used to support the function

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of the Crisis Negotiation Team as outlined in the Crisis Response Unit (CRU) policy.
c. Purpose: To be used for the transportation of CNT members and CNT operations conducted in support of the SWAT team.
d. Authorized Use : The CNT Van shall be used by officers authorized for its deployment by the CRU Commander or their designee and in a manner consistent with department policy and training.
e. Lifespan: Approximately 10-year lifespan.
f. Fiscal Impact: Annual maintenance cost is approximately $1,000. g. Training: The driver/operator shall receive training in the safe handling of the vehicle. Once the driver/operator has shown competence in vehicle handling, they will be allowed to deploy the vehicle for department authorized use. h. Legal and Procedural Rules: Use is established in the Vehicle Use Policy. It is the policy of the department to use the CNT Van only for official la w enforcement purposes, and in accordance with California State law regarding the operation of motor vehicles.

8. Battering rams, slugs and breaching apparatuses that are explosive in nature (Category 7)
a. Description, quantity, capabilities, and purchase cost:
i. LENCO BEARCAT, G2 BEAR-CAT vehicles have attachable metal booms that can be used for breaching structures, fences, or ramming objects during high -risk incidents, to include active shooter incidents on school grounds, buildings or other structures, cost: i ncluded with purchase of BEARCAT G2 quantity: 1.
ii. Ballistic Breaching is used to gain access to fortified structures using steel or security doors. The breaching rounds deployed from a shotgun and are only used by trained personnel with a legitimate law enforcement purpose.

The breaching ammunition is as follows:
(1) Royal Arms 275 grain copper frangible, cost: $4.50/round, quantity:
200 rounds. For use on solid wood doors, locks, and hinges. (2) Royal Arms 425 grain copper frangible, cost: $4.50/round, quantity 100 rounds. For use on heavy locks, dead-bolts & hinges, solid-oak, and steel doors.
(3) Royal Arms HP cutter 450 grain, cost: $5.00/round, quantity 100 rounds. Cuts re-bar, penetrates security glass, car doors, punches into engine blocks.
(4) Royal Arms copper frangible 500 grain, cost: $5.00/round, quantity 100 rounds. For use on h eavy Locks, Cross -bolts, and Hinges (Steel Doors / Steel Frames)
b. Purpose: To be used in response to critical incidents or CRU operations to enhance officer and community safety, im prove scene containment and stabilization. The use of breaching apparatus is for the rapid, positive, and

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dynamic access to an objective in order to bypass obstructions such as walls, doors and windows to gain access to a desired location with legal authority. c. Authorized Use: The use of battering rams, slugs and breaching apparatuses that are explosive in nature are limited to incidents under the direction of the CRU Commander or their designee. They shall only be used by officers trained in their deployment and in a manner consistent with department policy and training. d. Lifespan: Approximately 10 years.
e. Fiscal Impact: No measurable fiscal impact for maintenance. f. Training: All operators of this equipment shall attend formalized and continuing training in its use prior to deployment. Any personnel deploying breaching rounds will attend a course in its use prior to deployment.
g. Legal and Procedural Rules: Use is established in the Crisis Response Unit and Rapid Response and Deployment policies. It is the policy of the department to battering rams, slugs and breaching apparatuses that are explosive in nature, only for official law enforcement purposes, and pursuant to State and Federal law.

9. Specialized Firearms and Ammunition of less than .50 caliber (As defined by PC30510 and 30515) (Category 10)
a. Description, quantity, capabilities, and purchase cost:
i. Daniel Defense DDM4 MK12 Carbine, caliber: .223 and 5.56 NATO, cost:
$1700 each, quantity: 1 07. The Daniel Defense DDM4 MK12 is a high precision rifle that fires .223 caliber, and 5.56 NATO rounds accurately at close and long range. This rifle is the primary duty rifle issued for patrol officers, field personnel and specialized investigative units. ii. Daniel Defense DDM5 Carbine, caliber: 308 WIN/ 7.62 x 51mm, cost:
$2,500, quantity: 1. The Daniel Defense DDM5 is a high precision rifle that fires 308 WIN/ 7.62 x 51mm rounds accurately at close and long range.

This rifle is the primary duty rifle issued to a SWAT Long Rifle team member.
iii. Colt M4 Carbine, caliber: .223 and 5.56 NATO, cost: $1,700, quantity: 6.

The Colt M4 Carbine is a high precision rifle that fires .223 caliber, and 5.56 NATO rounds accurately at close and long range. This rifle is the issued for use of specialized investigative units and as back -up SWAT team weapons.
iv. Remington 700 bolt action rifle: 308 WIN, cost: $ 900 quantity: 5. The Remington 700 rifles are long -range precision rifles that sh oot 308 WIN rounds. The rifles are issued and used by our SWAT Team Long Rifle team.
(1) Ammunition: The Chino Police Department maintains an inventory of training and duty ammunition for the rifles listed above. The inventory fluctuates based upon training and the cycling out of duty ammunition, however it maintains approximately 25,000 rounds of duty ammunition and approximately 100,000 rounds of training ammunition. .
(a) The following is a list of manufacturers and types of the department’s duty ammunition:

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(i) Hornaday 168 grain ELD Match TAP Precision 308
WIN
(ii) Hornaday 165 GMX TAP Heavy Barrier 308 WIN
(iii) Speer LE Gold Dot 62 grain .223
(iv) Hornaday TAP 75 grain .223 and 5.56 NATO
(b) The Chino Police Department utilizes ammunition of various types from various reputa ble manufacturers for training purposes, based upon availability.
b. Purpose: To be used as precision weapons to address a threat requiring more precision and/or greater distances than that of a handgun, if present and feasible. c. Authorized Use: Only officers that complete the required POST-certified Tactical Rifle Course, which satisfies legislative training mandates as described in PC 33220, are authorized to deploy a rifle.
d. Lifespan
i. Daniel Defense DDM4 MK12 Carbine: No expiration.
ii. Daniel Defense DDM5 Carbine: No expiration.
iii. Colt M4 Carbine: No expiration.
iv. Remington 700 Bolt-action rifle: No expiration.
v. Ammunition: No expiration.
e. Fiscal Impact: Annual maintenance is approximately $50 for each rifle. f. Training: Officers shall not carry or utilize the pa trol rifle unless they have successfully completed the required POST -certified Tactical Rifle Course, which satisfies legislative training mandates as described in PC 33220. Officers shall thereafter be required to successfully complete yearly training and qualification conducted by a certified firearms instructor.
g. Legal and Procedural Rules: Use is established under the Patrol Rifles Policy. It is the policy of the Chino Police Department to utilize rifles only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.

10. Flashbang Devices (Category 12)
a. Description, quantity, capabilities, and purchase cost:

A Noise Flash Diversionary Devices (NFDD) is a device that creates a bright flash and loud sound to tempo rarily divert the attention of subjects in the immediate area. NFDD are used to distract and temporarily incapacitate dangerous suspects by overwhelming their senses of vision and hearing. The distraction allows officers to seize a moment of opportunity to take control of high-risk situations. i. Defense Technology Distraction Device Reloadable Body Model 8933. The Low Roll® Distraction Device® is a reloadable gun steel body with hex design. This newest version of the first reusable non -bursting canisters limits movement and rolling once deployed. cost: $58 each, quantity: 50 ii. Defense Technology Distraction Device 12-gram reload Model 8901 used in conjunction with the above reloadable body emits a loud “bang” and a flash of light, cost: $34 each, quantity: 150

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iii. CTS Flash-Bang 9Bang Model 7290-9 emits a loud “bang” and a flash of light (9) times, cost: $100 each, quantity: 28
b. Purpose: To produce atmospheric over-pressure and brilliant white light and, as a result, can cause short -term (6 -8 seconds) physiological /psychological sensory deprivation to give officers a tactical advantage.
c. Authorized Use: Diversionary Devices shall only be used: By SWAT officers who have been trained in their proper use. In hostage and barricaded subject situations.

In high-risk warrant (search/arrest) services where there may be extreme hazards to officers. During other high-risk situations where their use would enhance officer safety. During training exercises.
d. Expected Lifespan:
i. Defense Technology #8933, 25 Uses
ii. Defense Technology #8901, 5 years
iii. CTS #7209-9, 5 years
e. Fiscal Impact: Annual cost of the program $5,000.
f. Training: The use of these devices is limited to those who have attended certified training course on their proper use.
g. Legal and Procedural Ru les: It is the policy of the Chino Police Department to utilize diversionary devices only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force. Use of force and Crisis Response Unit policies apply.

11. Explosive Breaching Tools (Category12)
a. Description, quantity, capabilities, and purchase cost:

Explosive breaching is used to gain rapid access to a room or structure when an emergent law enforcement need exists. All efforts are made to minimize the amount of energetics applied to a target, while still achieving a positive breach.

Explosive breaching materials are used to make breaching charges of various shapes and strength which are specifically designed for the target. The materials release gasses, heat, and light when initiated. The pressure from the gasses released presses against mediums and or the target to cause the structure of the target to fail for a successful breach. Breaching charges are specially designed to cause structural failure of the desired target. The breaching charges in stock were built in house by the designated SWAT Team Explosive Breachers. Various types, configurations, and energetic weights are maintained for use as needed. Older charges are cycled out of stock during monthly training. i. 20 pounds of C2 Sheet Explosive PETN, cost: $49.50/ pound. A PETN based sheet explosive.
ii. 1000 feet, 50 grain per foot, detonation cord PETN, $0.63/ foot. The detonating cord is a thin, flexible plastic tube usually filled with pentaerythritol tetranitrate (PETN, pentrite). With the PETN exploding at a rate of approximately 6400 m/s, any common length of detonation cord appears to explode instantaneously. It is a high -speed fuse which explodes, rather than burns, and is suitable for detonating high explosives. iii. 50 Non-electric detonators 40-foot #1 delay, $10.75 each iv. 10 PETN slip-on boosters, 20 gram, $5.50 each

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b. Purpose: To safely gain entry into a structure when an emergent law enforcement need exists.
c. Authorized Use: Explosive breaching may only occur after authorization by the Incident Commander or SWAT Commander in the field, and during training exercises.
d. Expected Lifespan:
i. 50 grain Detonation Cord – 5 years
ii. C2 Sheet Explosive – Until expended
iii. Non-electric detonator – Until expended
iv. Slip-on boosters – Until expended
e. Fiscal Impact: Annual cost of the program $2,000.
f. Training: All Explosive Breachers shall be licensed as a Blaster by Cal-OSHA. All Breachers will attend an approved Explosive Breaching course. g. Legal and Procedural Rules: It is the policy of the Chino Police Department to utilize rifles only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force. Use of force and Crisis Response Unit policies apply.

12. Tear Gas (Category 12)
a. Description, quantity, capabilities, and purchase cost:

Chemical agent munitions, which are commonly referred to as “tear gas,” are used by the Chino Police Department as a non-lethal tool to disperse subjects engaged in civil unrest, as described by law and AB48 and Government Code 12525.2, as well as barricaded subjects for a legitimate law enforcement purpose. The Chino Police Department uses chemical agents which are used by law enforcement across the United States: CS (2 -Chlorobenzylidenemalononitrile) and OC (Oleoresin Capsicum) CS is an irritating agent and lachrymator (irritates the eyes and causes tears to flow). CS has been medically tested in the UK and US, specifically by the U.S. Army. There are no known allergic reactions to CS. O C was de-regulated in California in 1996, is endorsed by the FBI, and is available to civilians to legally possess (2.5oz or less). OC is an inflammatory agent which causes involuntary closure of eyes (open in 2 -5 minutes) and respiratory inflammation (subsides in approximately 2 minutes)
i. CTS #5230B – Pyrotechnic grenade designed for indoor use delivering a maximum amount of irritant smoke throughout multiple rooms with minimal risk of fire. Cost: $35 Each, quantity: 50.
ii. Defense Technology #1016 – Pyrotechnic canister grenade emitting CS smoke through for 20 to 40 seconds. This is a launchable grenade; however, it is normally used as a signaling or covering device. Though this device is slightly over four inches in length, it produces a smoke cloud so fast it appears to be an enveloping screen produced by a full -size tactical grenade. May be launched or hand thrown. Cost: $26.40 each, quantity:

60. iii. Defense Technology #1032 – The design of the Tri -Chamber Flameless CS Grenade allows the contents to burn within an internal can and disperse the agent safely with reduced risk of fire. The grenade is

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designed primarily for indoor tactical situations to detect and/or dislodge a barricaded subject. The purpose of the Tri -Chamber Flameless Grenade is to minimize the risks to all parties through pain compliance, temporary discomfort, and/or incapacitation of potentially violent or dangerous subjects. Cost: $38.40, quantity: 50.
iv. Defense Technology #2262 – The Ferret® 40mm Round is non -burning and suitable for indoor use. Used primarily by tactical teams, it is designed to penetrate barriers, such as windows, hollow core doors, wallboard, and thin plywood. Upon impacting the barrier, the nose cone ruptures and instantaneously delivers a small chemical payload inside of a structure or vehicle. In a tactical deployment situation, the 40mm Ferret is primarily used to dislodge barricaded subjects from confined areas. Its purpose is to minimize the risks to all parties through pain compliance, temporary discomfort and/or incap acitation of potentially violent or dangerous subjects. Cost: $23.60, quantity: 100.
v. Defense Technology #6182 Spede-Heat™ - The Spede-Heat™ CS Long- Range Munitions delivers one chemical canister of CS agent from a 40 mm launcher down range up to 150 yards. The Spede-Heat™ is a pyrotechnic round designed specifically for outdoor use in crowd control situations with a high-volume continuous burn that expels its payload in approximately 20- 40 seconds from a single source. Cost: $31 each, quantity: 90. vi. Defense Technology #1026 Triple-Chaser – The Triple -Chaser C S consists of three separate canisters pressed together with separating charges between each. When deployed, the canisters separate and land approximately 20 feet apart allowing increased area co verage in a short period of time. This is a hand -thrown munition. Cost $38.50 each , quantity: 8.
vii. Defense Technology #1080 Riot Control OC - The Riot Control OC grenade is designed specifically for outdoor use in crowd control situations with a high volum e of continuous burn that expels its payload in approximately 20-40 seconds through four gas ports located at the top of the canister. This grenade can be used to conceal tactical movement or to route a crowd. This is a hand -thrown munition. Cost: #38.5 0 each, quantity: 5.
viii. Defense Technology #6042 Muzzle Blast CS – The Muzzle Blast CS round can be used in crowd management and in tactical operations such as a barricaded subject, room clearing, area denial and for small space contamination. As a pain comp liance round it is an excellent device for deploying chemical-laden CS powder at close ranges. This is deployed from a 40mm launcher. Cost: $31 each, quantity: 10.
ix. Defense Technology #6040 Muzzle Blast OC – The Muzzle Blast OC round can be used in crowd management and in tactical operations such as a barricaded subject, room clearing, area denial and for small space contamination. As a pain compliance round it is an excellent device for deploying chemical-laden OC powder at close ranges. This is deploye d from a 40mm launcher. Cost: $31 each, quantity: 6.
x. Defense Technology #1097 Rubber Ball CS Blast – The Rubber Ball CS Blast grenade is a maximum effed device that delivers three stimuli for psychological and physiological effects: light, sound, and CS. The Rubber Ball CS Blast combines loud report and flash with effects of chemical agents. This is a hand-thrown munition. Cost: $35 each, quantity: 10.

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xi. Defense Technology #1082 Riot Control Continuous Discharge CS – The Riot Control Continuous Discharge CS is specifically designed for outdoor use in crowd control situations with a high -volume continuous burn that expels its payload in approximately 20-40 seconds through four gas ports located on the top of the canister. This is a hand -thrown munition. Cost:
$38.50 each, quantity: 17.
xii. Defense Technology #6172 Skat Shell CS – The Skat Shell CS multiple chemical projectile round is designed to deliver multiple CS canisters from a 40mm launcher. It is designed for outdoor use and is widely used for crowd management for the rapid and broad deployment of a chemica l agent by a single grenadier. This is deployed from a 40mm launcher. Cost:
$31 each, quantity: 5.
xiii. Defense Technology #6320, 40mm Direct Impact OC. A less lethal 40mm lightweight plastic and crushable foam projectile fired from a 40mm launcher. The 39 -gram crushable foam projectile delivers 120 ft/lbs. of energy upon impact in addition to dispersion of 5 grams of OC irritant. The 40mm Direct Impact OC Round provides accurate and effective performance when fired from the approved distance of not less than five (5) feet and as far as 120 feet from the target. Cost $31, quantity 5. xiv. Defense Technology #6322, 40mm Direct Impact CS. A less lethal 40mm lightweight plastic and crushable foam projectile fired from a 40mm launcher. The 39 -gram crushable foam proje ctile delivers 120 ft/lbs. of energy upon impact in addition to dispersion of CS. The 40mm Direct Impact CS Round provides accurate and effective performance when fired from the approved distance of not less than five (5) feet and as far as 120 feet from the target. Cost $31, quantity 5.
xv. Defense Technology #1092, Han-ball CS. The Han-ball CS is an outdoor use grenade expelling its payload in approximately 15 -20 seconds. The grenade holds approximately 1.6 ounces of active agent which is expelled through three ports around the equator of the ball. Cost $35, quantity 27. xvi. Defense Technology #1063, Military-Style Saf-Smoke Grenade. The Saf- Smoke grenade is designed for training but may also be used in operations.

The Saf-Smoke Grenade offers similar burn times as the Spede-Heat and Riot Control Grenade. It emits a very white smoke. This is a hand-thrown munition. Cost $31, quantity 10.
xvii. Defense Technology #1073 , Maximum HC Smoke. The Maximum Smoke grenade is designed for outdoor in crowd control and expels its payload in approximately 1.5 -2 minutes through four gas ports located at the top of the canister. The grenade can be used to conceal tactical movement or route a crowd. This is a hand -thrown munition. Cost $31, quantity 10.
xviii. Defense Technology #1017 , Pocket Tactical Saf -Smoke. The Pocket Tactical Saf -Smoke grenade is a small and lightweight. It will burn for approximately 20 -40 seconds and is normall y used as a signaling or covering device. This is a hand-thrown munition. Cost $31, quantity 10. xix. Defense Technology #6582, 40mm Ground Marker CS 200M. The 40mm Ground Marker munition is designed to deliver an irritant payload downrange to specified di stances. The spin stabilized projectile and smokeless propulsion system produce extremely consistent velocities and range. Applications for this product include crowd control, marking and

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obscuration. This is deployed from a 40mm launcher. Cost $31, quantity

15. xx. Defense Technology #1072 , Spede-Heat Continuous Discharge Chemical CS Grenade. A high-volume CS Grenade with continuous burn, designed for outdoor in crowd control environments, expels its payload in approximately 20 -40 seconds through four g as ports at the top of the canister, three on the side and one on the bottom. This is a hand-thrown munition. Cost $37, quantity 12.
xxi. Aerko Clear Out #AER1145, 6 ounce Burst Fogger. Aerko Clear Out fogger is a non-flammable aerosol which delivers an aerosol comprised of a mixture of CS and OC It is a chemical agent used to force occupants of an enclosed space to leave the area. This is a hand-thrown munition. Cost $19, quantity 12.
b. Purpose: To be used in response to incidents of civil unrest as descri bed by law and AB48 and Government Code 12525.2, as well as barricaded subjects, critical incidents, CRU operations to enhance officer and community safety. c. Authorized Use: The use of chemical agents will be done so at the direction of a Mobile Field Force Commander or SWAT Commander.
d. Lifespan: The lifespan of each chemical agent is approximately 5 years from the date of manufacture (each munition has it manufacture date affixed). e. Fiscal Impact : No measurable fiscal impact for maintenance. The cost of the program is approximately $4,000.
f. Training: Certified training in the use of chemical agents for each appropriate use in crowd control or by the SWAT team will be completed prior to its use by a ny department member.
g. Legal and Procedural Rules : Use is described in the Use of Force, Civil Disturbance or Unusual Occurrence Plan, First Amendment Assemblies policies.

It is the policy of the department to use this device only for official law enforcement purposes, and pursuant to State and Federal law.

13. PepperBall Launchers and Munitions (Category 12)
a. Description, quantity, capabilities, and purchase cost:

PepperBall gives law enforcement professionals a powerful, non -lethal option for defense. PepperBall launchers use high pressure air to deliver PAVA (Pelargoinc Acid Vanillylamide) powder projectiles which are similar to a powdered “pepper spray.” The PAVA projectiles deliver kinetic energy impacts as well as the PAVA powder. It is a de -escalation tool to avoid further injuries or lethal options to a subject.
i. PepperBall VKS Carbine launcher. The VKS launcher is the strongest non- lethal consumer device a vailable from PepperBall, it has an effective distance of up to 150 feet. It is powered with a high-pressure air bottle and the rounds are gravity fed through a hopper, or magazine fed. Cost: $1,300 each, quantity: 4.
ii. PepperBall SA -200 Launcher. The launc her is powered with a high - pressure air bottle and the rounds are gravity fed through a hopper. Cost:
$800, quantity: 1.

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iii. PepperBall Tac Launcher. The launcher is powered with a high -pressure air bottle and the rounds are gravity fed through a hopper. Cos t: $800, quantity: 1.
iv. PepperBall Live Projectiles. The basic PepperBall projectile contains 2% PAVA pepper powder, and is designed for direct impact and area saturation, especially in confined, interior spaces. Discharged from a PepperBall Launcher, the pr ojectile has a velocity of 280 -350 FPS. The projectile has a direct impact of 60ft and an area of saturation of 150+ft.

The projectile contains 0.5% PAVA Powder. Cost: $900/ per 375 rounds, quantity: 1500.
v. PepperBall Inert Projectiles. The Inert PepperBall projectile contains a harmless scented powder and is designed for direct impact and for training with a PepperBall Launcher, the projectile has a velocity of 280 -350 FPS.

The projectile has a direct impact of 60ft. Cost: $400/ per 375 rounds, quantity: 1500.
b. Purpose: To provide officers with a non -lethal option to deliver a chemical agent and kinetic impact to subjects for a legitimate law enforcement purpose, to affect an arrest, prevent escape or overcome resistance as define by law and department policy. It is a de -escalation tool to avoid further injuries or lethal options to a subject.
c. Authorized Use: Officers may deploy a PepperBall launcher in incidents of civil unrest as described by law and AB48 and Penal Code 13652 , as a non -lethal option to deliver a chemical agent and kinetic impact on subjects who are violent, threatening violence, who are armed, or threatening self -harm, and barricaded subjects.
d. Expected Lifespan:
i. Launchers – 5-10 years.
ii. Live and inert projectiles - 5 years
e. Fiscal Imp act: Annual maintenance costs are approximately $50/ launcher.

Annual cost of the program $2,000.
f. Training: The use of these devices is limited to those who have attended certified training course on their proper use.
g. Legal and Procedural Rules : Use is described in the Control Devices and Techniques policy. It is the policy of the Chino Police Department to utilize less - lethal devices only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.

14. Long Range Acoustic Device (LRAD) (Category 13)
a. Description, quantity, capabilities, and purchase cost:

LRAD 100X Portable Hailing System, cost: $6,000, quantity: 1. The Model 100X Portable Hailing System is a self -contained, hand-held, portable communications device for use in on-scene and tactical communications. It has the capability to be 20- 30 dB louder than legacy bullhorns and vehicle-based P.A. systems, while still being 4x- 6x louder and more intelligible than products with a comparable size and weight. Weighing at only 15 lbs. with battery.

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b. Purpose: To be used in response to critical incidents or CRU operations to enhance officer and community safety, improve scene containment and stabilization. The use of breaching apparatus is for the rapid, positive, and dynamic access to an objective in order to bypass obs tructions such as walls, doors and windows to gain access to a desired location with legal authority. c. Authorized Use: The LRAD 100X can be used as a public address (PA) system during tactical situations or at large events where its use will benefit the community and public safety.
d. Lifespan: Approximately 10 years.
e. Fiscal Impact: No measurable fiscal impact for maintenance. f. Training: Training in its use will be conducted prior to its use by any department member.
g. Legal and Procedural Rules: It is the policy of the department to use this device only for official law enforcement purposes, and pursuant to State and Federal law.

15. 40mm Projectile Launchers, Specialty Impact Munitions (Category 14) a. Description, quantity, capabilities, and purchase cost:
i. Defense Technology/ LMT, 40mm single -shot launcher, #1425, cost:
$1000 each, quantity: approximately 5 1. The 40mm single launcher is a tactical single shot launcher will fire standard 40mm less lethal ammunition, up to 4.8 inches in cartridge length.
ii. Defense Technology/ LMT, 40mm 4 -shot launcher, #1440, cost: $1000 each, quantity: approximately 3. The 40mm 4 -shot launcher is a tactical launcher will fire standard 40mm less lethal ammunition, up to 4.8 inches in cartridge length.
iii. Defense Technology/ LMT, 7-inch M203 40mm single -shot launcher, #LMP350/L2X1, cost: $1500 each, quantity: approximately 2. The 40mm single launcher is a tactical launcher that will fire standard 40mm less lethal ammunition, up to 4.8 inches in cartridge length.
iv. Defense Technology #6325, 40mm eXact Impact Sponge Round. A less lethal 40mm lightweight plastic and foam projectile fired from a 40mm launcher. The 40 -gram foam projectile delivers 120 ft/lbs. of energy on impact. The 40mm Exact Impact Sponge Round provides accurate and effective performance when fired from the approved distance of not less than five (5) feet and as far as 131 feet from the target. Cost: $20 each, quantity: approximately 300.
v. Defense Technology #6326, 40mm Direct Impact Marking Round. A less lethal 40mm lig htweight plastic and foam projectile fired from a 40mm launcher. The 40 -gram foam projectile delivers 120 ft/lbs. of energy on impact and loaded with a green marking agent. The 40mm Exact Impact Sponge Round provides accurate and effective performance when fired from the approved distance of not less than five (5) feet and as far as 131 feet from the target. Cost: $20 each, quantity: approximately 5.

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b. Purpose: To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.
c. Authorized Use: Situations for use of the less lethal weapon systems may include, but are not limited to:

Self-destructive, dangerous and/or combative individuals, riot/crowd control and civil unrest incidents as described by law and AB48 and Government Code 12525.2, circumstances where a tactical advantage can be obtained, potentially vicious animals, training exercises or approved demonstrations. d. Training: Sworn members utilizing 40mm less lethal launchers are trained in their use by POST certified less lethal instructors.
e. Lifespan: Defense Technology/ LMT #1425, 1140, M203: approximately 25 years.

Exact Impact Sponge: approximately 5 years.
f. Fiscal Impact: Annual maintenance is approximately $50 for each launcher. g. Legal and Procedural Rules: Use is established Control Devices and Techniques Policy. It is the policy of the Chino Police Department to utilize the 40mm only for official law enforcement purp oses, and pursuant to State and Federal law, including those regarding the use of force.

MAINTENANCE OF MILITARY USE SUPPLY LEVELS
When stocks of military equipment have reached low levels, the Department may order up to 30% of stock in a fiscal quarter without City Council's pre-approval to maintain essential availability for the police department's needs.

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Revenue: Expenditure: 1002030-43650 .

Transfer In: Transfer Out:

M E M O R A N D U M

CITY OF CHINO

ADMINISTRATION DEPARTMENT

COUNCIL MEETING DATE: MARCH 21, 2023

TO: MAYOR AND CITY COUNCIL MEMBERS, CITY OF CHINO

FROM: LINDA REICH, CITY MANAGER

SUBJECT: APPROVE THE INTRODUCTION OF 2023 -007 AND A VENDOR CAP INCREASE WITH GRANCIUS.

RECOMMENDATION
Approve the introduction of Ordinance No. 2023-007, authorizing the City to allow electronic and paper campaign disclosure statements and authorize a vendor cap increase in the amount of $2,000 for a revised total of $80,047.79 to Granicus.

FISCAL IMPACT
There is no fiscal impact as there is sufficient funding in the Fiscal Year 2022-2023 budget.

CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES:

The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Superior Customer Service
• Effective Technology

12.18 NEW BUSINESS
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COUNCIL MEETING DATE: MARCH 21, 2023
SUBJECT: APPROVE THE INTRODUCTION OF 2023-007 AND A VENDOR CAP INCREASE

WITH GRANCIUS
PAGE 2

BACKGROUND:

Pursuant to Chapter Four of the California Political Reform Act, elected officials, candidates, and committees are required to file campaign disclosure statements. These documents provide the public access to financial accounting information for candidates to public office that spend or receive more than $2,000 in a calendar year. The City Clerk’s office facilitates the completion and retrieval of these forms. This includes sending applicable completed forms to the California Secretary of State’s Office while also maintaining physical copies at City Hall and on the City’s website.

In 2020, the City transitioned to an electronic filing system for Fair Political Practice Commission (FPPC) Form 700’s. Automating this process was an effective solution that allowed the City Clerk’s office to efficiently gather completed Form 700’s from numerous City staff members and maintain the documents in an easily searchable repository.

With the success of automating the FPPC Form 700 process, staff is recommending that the City Council adopt an ordinance to automate the campaign disclosure form process.

ISSUES/ANALYSIS:

California Government Code Section 84615 permits local agencies to accept electronically completed campaign disclosure forms when the local agency adopts a local ordinance authorizing the use of an electronic filing system included on the Secretary of State’s approved vendors list.

The proposed ordinance details the process staff will take to implement the automation program. Some of the more critical aspects to the proposed ordinance includes:
· Elected officers, candidates, and committees may opt-out, and continue to file physical copies until the respective person or group decides they would like to use the electronic filing system.
· If the electronic filing system is used, additional copies filed with the City Clerk is not required.
· If an elected official, candidate, or committee determines they will use the electronic filing system, they should continue to do so for future filings to ensure continuity; however, they may also revert back to filing paper copies if needed.

City staff is also recommending that the City Council approve a vendor cap increase with Granicus by $2,000. Granicus (who acquired SouthTech Systems, which is listed on the SOS Approved Vendors list for FPPC automation services) currently provides the City agenda management and FPPC Form 700 software programs. The combined purchase orders to Granicus exceeds $50,000 so City Council approval of a $2,000 vendor cap increase is requested.

Attachment: Ordinance No. 2023-007

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01225.0001/757123.4

ORDINANCE NO. 2023-007

AN ORDINANCE OF THE CITY OF CHINO, CALIFORNIA,
ADDING CHAPTER 2.72 TO TITLE 2 (ADMINISTRATION AND

PERSONNEL) OF THE CHINO MUNICIPAL CODE

AUTHORIZING ELECTRONIC AND PAPER METHODS OF

FILING CAMPAIGN FINANCE DISCLOSURE STATEMENTS
WHEREAS, Government Code Section 84615 provides that a local government agency may require an elected officer, candidate, committee, or other person required to file statements, reports or other documents required by Chapter 4 of the Political Reform Act, except those whose contributions and expenditures each total less than $ 2,000 in a calendar year, to file such statements, reports, or other documents online or electronically with the City Clerk; and WHEREAS, Government Code Section 84615 provides that when a local government agency requires online or electronic filing, the legislative body for the local government agency shall adopt an ordinance approving the use of online or electronic filing; and WHEREAS, the City of Chino (“City”) intends to enter into an agreement with a vendo r approved by the California Secretary of State, to provide an online electronic filing system ("System") for campaign disclosure statements; and
WHEREAS, the City Council expressly finds and determines that the System contains multiple safeguards to protect the integrity and security of the data, and will operate securely and effectively and will not unduly burden filers pursuant to Government Code Section 84615; and WHEREAS, the City Clerk will operate the System in compliance with the requirements of Government Code Section 84615 and any other applicable laws; and WHEREAS, the City Council of the City of Chino desires to amend the Chino Municipal Code to add a new chapter relating to electronic filing of campaign statements to more easily comply with reporting guidelines set forth in AB 2151 and other applicable law.

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

Section 1. The forgoing recitals are true and correct and are incorporated herein by this reference.

Section 2. Chapter 2.72 (Electronic Filing of Campaign Finance Statements) of Title 2 (Administration and Personnel) of the Chino Municipal Code is hereby added as follows:
“CHAPTER 2.72 - ELECTRONIC FILING OF CAMPAIGN FINANCE

STATEMENTS

Sections:

2.72.010 Purpose

2.72.020 Required Use of Electronic Filing System.

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2.72.030 Paper Filing Not Required After Electronic Filing.

2.72.040 Filing Options When a Copy Must be Filed With City Clerk.

2.72.050 Paper Filing When Cannot File Electronically.

2.72.060 Internet Posting of Data.

2.72.070 Records Retention.

2.72.080 Administrative Policies and Procedures.

2.72.010 – Purpose
This chapter provides standards for the development and use of an online electronic filing system for the electronic filing of campaign finance statements to ensure compliance with the reporting guidelines set forth in AB 2151 and other applicable law.

2.72.020 - Required Use of Electronic Filing System.

A. Except as set forth in subsection B, any elected officer, candidate, committee, or other person required to file specified statements, reports, forms, or other documents with the Chino City Clerk as required by Chapter 4 of Title 9 of the Government Code (commencing with Section 84100 of Chapter 4 of Title 9 of the California Government Code), and that has received contributions or made expenditures of $2,000 or more in a c alendar year, may electronically file such statement using the City's online filing system according to procedures established by the City Clerk. However, to ensure reporting continuity, once a statement, report, form, or other document is filed electronically by or on behalf of the elected officer, candidate, committee, or other person, all future statements, reports, forms, and other documents filed on behalf of such person(s) must be filed electronically; provided that such person(s) may opt-out of the electronic filing system pursuant to subsection B.

B. An elected officer, candidate, committee, or other person may opt -out of the electronic filing system by filing all original statements, reports, forms, or other documents in paper format with the City Clerk. Thereafter, such person(s) shall file all original statements in paper format with the City Clerk unless advance arrangements are made to begin filing electronically pursuant to Section A above.

C. The online filing system shall ensure the integrity of the data transmitted and shall include safeguards against efforts to tamper with, manipulate, alter, or subvert the data.

D. The online or electronic filing system shall accept a filing in the standardized record format pursuant to Government Code Section 84615(b).

2.72.030 - Paper Filing Not Required After Electronic Filing.

Any elected officer, candidate, committee, or other person who has electronically filed a statement, report, form, or other document using the City's online system is not also required to file a copy of that document in a paper format with the City Clerk.

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2.72.040 - Filing Options When a Copy Must be Filed With City Clerk.

In any instance in which an original statement, report, form, or other document must be filed with the Secretary of State or other agency, and a copy of that document is required to be filed with the City Clerk, the filer may electronically file a copy with the City Clerk or may file in a paper format.

2.72.050 - Paper Filing When Cannot File Electronically.

If, for technical reasons, the City's system is not capable of accepting a particular type of statement, report, form or other document, an elected officer, candidate, committee, or other person shall timely file that document in paper format with the City Clerk.

2.72.060 - Internet Posting of Data.

Pursuant to Government Code Section 84616, the City Clerk shall ensure that the City's system makes all electronically -filed statements, reports, forms, or other documents available on the internet in an easily understood format that provides the greatest public access. The data shall b e made available free of charge and as soon as possible after receipt/deadline. The data made available on the internet shall not contain personal information (other than the name) of the filer, including but not limited to, address, social security number, driver’s license of the persons or entity representatives listed on the electronically filed forms or any bank account number required to be disclosed by the filer.

2.72.070 - Records Retention.

The City Clerk's office shall maintain records according to the City's records retention schedule and applicable State law commencing from the date filed, a secured, official version of each online or electronic statement, report, form, or other document, which shall serve as the official version of that record.

2.72.080 - Administrative Policies and Procedures.

The City Clerk is authorized to adopt such administrative policies and procedures as deemed necessary to implement this Chapter.”
Section 3. This Ordinance shall become effective 30 days after adoption.

Section 4. The City Clerk shall certify as to the passage of this Ordinance and shall cause the same to be published and/or posted at the designated locations in the City of Chino.

PASSED, APPROVED, AND ADOPTED this 4th day of April, 2023.

Eunice M. Ulloa, Mayor
ATTEST:

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Natalie Gonzaga, City Clerk

State of California )
County of San Bernardino ) §
City of Chino )

I, Natalie Gonzaga, City Clerk of the City of Chino, do hereby certify that the foregoing Ordinance of the City of Chino was duly adopted by the City Council at a regular meeting held on the 4th day of April 2023.

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

_________________________________

NATALIE GONZAGA, CITY CLERK

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Revenue: Expenditure:

Transfer In: Transfer Out:

M E M O R A N D U M

CITY OF CHINO

DEVELOPMENT SERVICES DEPARTMENT

COUNCIL MEETING DATE: MARCH 21, 2023

TO: LINDA REICH, CITY MANAGER

FROM: NICHOLAS S. LIGUORI, AICP, DEVELOPMENT SERVICES DIRECTOR

SUBJECT: ROAD CLOSURE POLICY.

RECOMMENDATION
.Adopt Resolution No. 2023-017, establishing a revised Road Closure Policy that implements a deposit requirement and penalties for delays in construction.

FISCAL IMPACT
No direct fiscal impact.

CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES:

The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
· Positive City Image
· Responsible Long-Range Planning
· Public Service Excellence through Internal and External Partnerships

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COUNCIL MEETING DATE: MARCH 21, 2023
SUBJECT: ROAD CLOSURE POLICY
PAGE 2

BACKGROUND
In the last few years, the City has been aggressively making capital improvements into roadways and storm drains. The San Bernardino County Transportation Authority and State Department of Transportation have also funded improvements to bridges, overpasses, and on - and off-ramps for the SR-60 freeway. These improvements have triggered corresponding street work and utility relocations.

At the same time that these projects are under cons truction in the northern part of town, The Preserve has experienced a construction boom. Because the existing infrastructure in The Preserve was virtually non-existent when the area was annexed 20 years ago, developers have had to construct sewer, water, a nd storm drain lines where none existed; build new roads or greatly improve existing roads; and utility companies have had to extend electricity, gas, and communication services to these areas as well. Since most of this infrastructure occurs within the public right-of-way, there are many times when streets need to be partially or fully closed to facilitate the construction of the underlying facilities.

When public improvements are constructed by a developer as a result of the need to expand and improve infrastructure to serve their development and surrounding areas, the City does not control the contractor. We have a regulatory role in issuing permits and inspecting for the work, but we have less control over the schedule. Due to a number of factors, within the past three years, improvements to both Kimball and Bickmore Avenues that have been constructed by developers have experienced lengthy schedule overruns, re -opening many months after the work was originally estimated to be completed. This has caused fr ustration and great inconvenience to residents in The Preserve. Because the area is only 50% built -out, additional large-scale infrastructure projects will still be required in the future.

ISSUES/ANALYSIS
The City currently reviews and approves road closur e requests for construction through an encroachment permit process, which is required for any work within the public right -of-way.

Enforcement of the encroachment permit provisions is conducted in accordance with the City's Municipal Code regulations, and administrative citation process when violations occur, which includes citations of up to $1,000 per day. The proposed road closure policy would now require a deposit to be placed with the City, proportional to the length of the closure, and the value of the work to be done. If work extends beyond the end date of the permitted closure, the City will start to deduct funds from the deposit on a daily basis, up to $5,000 per day for the largest projects. This will provide great incentive for the developer and contractor to finish the work on a timely basis. The City also reserves the right to issue a stop work order, and repair and re -open the street at the developer’s expense.

This policy will be beneficial due to the ongoing development in the City of Chino, w hich will continue to involve developers constructing and widening City streets, and improving sewer, water, and storm drain facilities necessary for new neighborhoods and commercial areas.

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RESOLUTION NO. 2023-017

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO,
CALIFORNIA ADOPTING A ROAD CLOSURE PERMIT POLICY.

WHEREAS, roadway closures necessary to carry out construction often result in inconvenience to City inhabitants;

WHEREAS, a more formalized Road Closure Permit Policy would help to minimize the resulting inconvenience to City residents by having more predictability with road closures;

WHEREAS, the adoption of a formal Road Closure Permit Policy would assist the City in having consistency in Road Closure Permit applications and related procedures; and

WHEREAS, the City Council now desires to establish a uniform policy for Road Closure Permits granted in the City.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHINO HEREBY RESOLVES AS FOLLOWS:

Section 1. The City Council hereby adopts the “Road Closure Permit Policy” attached hereto as Exhibit “A”.

Section 2. This “Road Closure Permit Policy” shall only apply to “Major Roadways”, which are defined either in the City’s General Plan as collector or above classifications of roadways or are determined as such by the City’s Traffic Engineer.

Section 3. Any applicant seeking a road closure permit for any major road closure shall comply with the conditions for road closures, as stated in the “Road Closure Permit Policy” document, attached here as Exhibit A.

Section 4. Any applicant seeking a road closure permit for any major road closure shall submit a completed Road Closure Permit Application, attached here as Exhibit B, and a Detailed construction schedule (“construction schedule”), with instructions for completing the construction schedule contained in Exhibit A.

Section 5. Failure to comply with the conditions for road closures, or not submitting a properly completed Road Closure Permit Application or a construction schedule shall be automatic grounds for denying an applicant a Road Closure Permit under this Policy.

Section 6. That this Resolution is effective on the date of its adoption.

APPROVED AND ADOPTED THIS 21ST DAY OF MARCH 2023.

EUNICE ULLOA, MAYOR

ATTEST:

NATALIE GONZAGA, CITY CLERK

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RESOLUTION NO. 2023-017
PAGE 2

State of California )
County of San Bernardino ) ss.

City of Chino )

I, NATALIE GONZAGA, City Clerk of the City of Chino, do hereby certify that the foregoing Resolution was duly adopted by the City Council at a regular meeting held on the 21st day of Mach 2023 by the following votes:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

NATALIE GONZAGA, CITY CLERK

Attachment: Exhibit “A” – Road Closure Permit Policy

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T:\FORMS & APPLICATIONS\ROAD CLOSURE NOTIFICATION 2/16/2023 TA

ROAD CLOSURE PERMIT POLICY

CITY of CHINO
Development Services Department
13220 Central Avenue
Chino, CA 91710
(909) 334-3250

www.cityofchino.org

Applicants seeking a permit shall comply with the following conditions for all major road closures. “Major Roadways” are defined as collector or above classifications of roadways as defined in the City’s General Plan or as determined by the City Traffic Engineer.
 Submit completed Road Closure Permit Application.

 Detailed construction schedule - Submit a detailed schedule with the Permit application outlining a critical path for each phase of the work to be completed with calendar dates, duration of work, and the names of contrac- tors and subcontractors to be responsible for each aspect of the work. The schedule must clearly indicate the date on which the roadway closure will end (i.e. the reopen date). City ’s acceptance of the schedule shall be subject to approval by the City Engineer or designee. No Permit will be issued in the absence of an approved schedule.

All work performed shall be subject to the following:

1. Securing Necessary Approvals - Applicant shall secure all the necessary permits prior to commenc- ment of work.

2. ALL sub-contractors and construction materials shall be on site at all times and prepared to commence the work.

3. Existing utilities have been potholed and noted areas on the plans.

4. Traffic control plan approved for all phases of work including a detour plan for necessary phases of work.

5. Changeable message sign shall be in place announcing the closure two weeks in advance of the closure and verified by City Inspector.

6. Coordination of Work - Applicant shall arrange and schedule work to be performed by utility companies, railroads, and any third -parties so they are prepared and do not cause any undue delay. City shall have no responsibilities related to coordination of work. Road closures that involve Gas and Electric utility com- panies to relocate poles, lines, etc., will not be effective until the utility compan(ies) are on -site and ready to start work. Applicant shall ensure that all traffic control devices no longer needed for work in progress or safety reasons are removed from the area.

7. Pre-Construction Meeting - Schedule and attend a pre-construction meeting with the City, all contrac- tors, subcontractors and utility companies to be involved in the work. No permit for road closures will be issued prior to a pre-construction meeting.

8. Due Diligence - Applicant shall diligently complete work as scheduled to minimize the duration of road- way closures and the resulting inconvenience to City residents. Work must be underway each and every weekday of the road closure; in some cases, the City may require extended working hours and/or work be performed on weekends and holidays to reduce the duration of the closure. Whenever possible, or when required by City, work on major roadways shall be performed at night and at off-peak travel times.

9. Request for Extension - Applicant may request an extension of time for a Roadway Closure (beyond the reopen date originally set forth in and approved schedule) in the event of delays occasioned by un- foreseen events. Requests must be in writing and submitted within 7 working days of the event delay.

Extensions will not be approved for delays caused by Applicant ’s ill planning or coordination, failure to se- cure needed approvals, or scheduling issues with utility companies. It is the Applicant ’s responsibility to schedule work.

10. Fines - Applicant’s failure to complete work by the scheduled completion date will result in significant in- convenience to the City and its residents. While it ’s extremely difficult to completely ascertain the magni- tude of said inconvenience, the City shall be entitled to liquidated damages for each day of delay beyond the scheduled completion date from each contractor involved with said inconvenience. The per day liqui- dated damages rate is based on the table below. Applicant hereby agrees and acknowledges that such liquidated damage amount is reasonable and appropriate in light of the likelihood of inconvenience to the City and its residents from any delays.

11. Certificate of Occupancy - Certificate of Occupancy and/or Temporary Certificate of Occupancy may be withheld at the sole discretion of the City’s Building Official.

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14. Force Majeure - Applicant will not be held responsible for delays caused by events or conditions legally constituting a force majeure, including acts of God, labor disputes, civil unrest or natural disaster. Applicant’s ill planning or coordination, failure to secure need- ed approvals or permits from the City or other agencies, and delays caused by scheduling with utility companies do not constitute a force majeure.

15. Use of Fines - Funds collected as liquidated damages shall be used to mitigate impacts related to the road closure in City Engineer ’s discretion, including for asphalt repair or other maintenance improvements on detour routes and roads near the closure used by the displaced traffic.

16. Deposit Refund - Refunds will be provided to the Applicant within 30 days of receipt of a “Request for Road Closure Deposit Refund ”. Request must be in writing and will be issued only to the person or company that originally made the deposit.

I agree my project is ready to proceed with a road closure. In an effort to avoid delay of construc- tion, I agree the above items have been coordinated. I understand and agree to compensate the City of Chino and any other party for all costs to restore any and all damage to the public right -of-way, other city property, and other life or property, and for all remediation costs of all environmental dam- age caused, directly or indirectly, by my acts or omissions as required by Chapter 12.02 of the Chino Municipal Code. To this end, Applicant agrees to defend, indemnify and hold City, its officers, agents and employees harmless against any and all actions, lawsuits, judgements, costs and expenses for personal injury (including death), property damage or other harm for which recovery of damages is sought (“Claims”) that may arise out of or be omission of Applicant, its officers, agents, employees or subcontractors in the use of public property as authorized by this application; except that the indem- nity provided herein shall not apply to any Claims resulting from the sole negligence or willful mis- conduct of City.

12. Required Deposit - Applicant (or the Contractor or Developer) shall submit a refundable deposit as set forth in the table below for all major road closures. The deposit will be refunded when the roadway subject to the road closure is fully open to vehicular traffic. Deductions shall be made from the deposit for every day (inclusive of weekend and holidays) a road/lane remains closed beyond the originally scheduled, or duly extended, reopen date and for any damage to existing improvements caused as a result of Applicant’s work or due to Applicant’s failure to abide by any terms of this Road Closure Notification, the Road Closure Permit Application or failure to ade- quately safeguard or monitor any aspect of the work or closure area. If the deposit has been ex- hausted, a stop work order shall be issued until a new deposit equal to the original deposit has been made. The per day liquidated damages rate is based on the table below.

13. Insurance - Applicant shall provide proof of commercial general liability insurance, workers ’ compensation and comprehensive automobile liability insurance. If the work performed will or may involve the removal and/or disposal of hazardous waste, hazardous waste/pollution liability insurance will be required.

Duration of Road Closure Value of Work being Completed Required Deposit Amount Per Day Rate Deposit Amount—use larger of the values below
1 to 10 days Up to $100,000 $20,000 $1,000
10 to 30 days $100,001 to $500,000 $30,000 $1,500
31 to 90 days $500,001 to $1,000,000 $60,000 $2,000
91 to 180 days $1,000.001 to $3,000,000 $100,000 $3,000 Over 180 days Over $3,000,0001 $300,000 $5,000
Applicants seeking a permit shall comply with the following conditions for all major road closures. “Major Roadways” are defined as collector or above as defined in the City’s General Plan or as determined by the City Traffic Engineer.

ROAD CLOSURE PERMIT POLICY

Signature of Applicant or Representative Date

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T:\FORMS & APPLICATIONS\ROAD CLOSURE NOTIFICATION 2/16/2023 TA

ROAD CLOSURE PERMIT APPLICATION

CITY of CHINO
Development Services Department
13220 Central Avenue
Chino, CA 91710
(909) 334-3250

www.cityofchino.org

The contractor shall notify the Development Services Department a minimum of 14 days prior to the closure of any street, by submitting this form to the Engineering Division via e-mail.

Staff Use Only
Date Received Approved By Date
Contractor: Office Phone:

Contact Person: Emergency Phone:

E-Mail Address:

Applicant: Office Phone:

Contact Person: Emergency Phone:

E-Mail Address:

LOCATION
Street Name Between and
Direction [ NB / SB / WB / EB ] (circle more than one if required) Street Name Between and
Direction [ NB / SB / WB / EB ] (circle more than one if required)

CLOSURE DATES AND TIMES
Start Date End Date
Day of Week Start Time End Time

DESCRIPTION OF WORK

THIS FORM MUST BE APPROVED BEFORE PROCEEDING WITH THE CLOSURE. FAILURE TO COMPLY WITH THE NOTIFICATION REQUIRE-

MENTS WILL RESULT IN AN IMMEDIATE ENCROACHMENT PERMIT SUSPENSION/TERMINATION OF WORK IN THE PUBLIC RIGHT OF WAY.

Permit Number: Public Works Inspector:

Traffic Control to be set per TCP reviewed on:

DETOUR ROUTE FROM APPROVED TCP

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M E M O R A N D U M

CITY OF CHINO

DEVELOPMENT SERVICES DEPARTMENT

COUNCIL MEETING DATE: MARCH 21, 2023

TO: LINDA REICH, CITY MANAGER

FROM: NICHOLAS S. LIGUORI, AICP, DEVELOPMENT SERVICES DIRECTOR

SUBJECT: FINAL ACCEPTANCE OF PUBLIC IMPROVEMEN T - TM 18924 MERITAGE HOMES OF CALIFORNIA, INC. (ORCHARD SQUARE).

RECOMMENDATION
1) Accept public improvements as complete for TM 18924 Orchard Square; 2) authorize release of the performance bond and initiate the warranty bond; and 3) authorize the City Manager to execute the necessary documents on behalf of the City.

FISCAL IMPACT
There are sufficient funds included in the City’s Operating Budget to support the maintenance activities related to the improvements.

CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES:

The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
· Positive City Image

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COUNCIL MEETING DATE: MARCH 21, 2023
SUBJECT: FINAL ACCEPTANCE OF PUBLIC IMPROVEMENT - TM 18924 MERITAGE HOMES OF CALIFORNIA, INC. (ORCHARD SQUARE)
PAGE 2

BACKGROUND
On January 19, 2015, the City of Chino Planning Commission conditionally approved Site Approval PL14 -0685, Tentative Tract Map 18924 and Special Conditional Use Permit PL14 - 1065 submitted by Meritage Ho mes of California, Inc. (developer) to construct 92 single -family residential dwelling units on 7.7 acres of land located on the east side of Central Avenue at Mariner Lane (Exhibit A).

The conditions of approval require public improvements along Central A venue and Locust Street, which necessitated the execution of a Subdivision Improvement Agreement and the posting of securities to guarantee the construction of said public improvements. The public improvements include, but are not limited to, curb, gutter, sidewalk, streetlights, crosswalks, curb ramps, street pavement, and a new traffic signal at the intersection of Central Avenue and Mariner Lane.

Between March 2015 and January 2018, the project underwent various rounds of plan check review for the onsite and offsite improvements, including the Final Tract Map. The time needed to finalize the project’s plans didn’t follow the City’s normal turnaround schedule primarily due to there being large delays by the developer in returning plans to the City because they were contemplating selling the project. Stratham Homes received plan approvals in early 2018 and subsequently applied for permits to construct both onsite and offsite improvements in April 2018.

In early 2019, Meritage Homes of California, Inc. purchased the property from Stratham Homes.

On April 16, 2019, the City Council approved the annexation of the property to the City’s Landscape and Lighting District No. 2002 -1 (Annexation/Zone No. 80) for public streetlight maintenance along the project frontage within the right-of-way. Meritage Homes constructed the onsite and offsite improvements consistent with the approved plans in 2019. Subsequently, the City's Policy on Accessible Pedestrian Facilities was adopted, and staff determined that the offsite improvements, mainly the curb ramps and sidewalk, did not comply with the accessibility requirements as constructed. Staff and the developer had protracted negotiations between 2020 and 2022 in an attempt to require the developer to rebuild the sidewalk and curb ramps. The non-compliant improvements were ultimately reconstructed in August 2022. Once the improvements were completed, staff initiated the punch list, final inspection and project close - out procedure.

ISSUES/ANALYSIS
The public improvements are complete and have been constructed to the satisfaction of the City Engineer. These improvements were made to bring the pedestrian facilities up to standards.

The improvements that are being accepted have been constructed to meet City and all applicable accessibility requirements.

This project and the existing residential subdivision on the west side of Central Avenue (TM - 18982, DR Horton) were conditioned to construct a traffic signal at Central Avenue and Mariner Lane, which serves as the primary access to bo th sites. Although Meritage Homes has completed all necessary traffic signal improvements on the east side of Central Avenue to the satisfaction of the City Engineer, the signal improvements cannot be recommended for acceptance until the developer for TM-18982 has addressed accessibility issues associated with existing pedestrian crossings on the west side of Central Avenue.

All required development -related fees have been paid and security for a one -year warranty

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PAGE 3

period has been submitted. Under the warrant y bond obligation, the developer will correct any defects found within one-year of the City Council’s acceptance of the project.

With approval by City Council, the following maintenance obligations will commence:

Public Street Sweeping: By the City
Public Sidewalks: By the City
Public Street lights: By the City
Landscaping: By the HOA
Attachment: Exhibit A - Location Map
Exhibit B - Fully Executed Public Improvement Agreement & Bonds

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ORCHARD SQUAREMERITAGE HOMES, INC.TRACT NO. 18924, CHINO, CABY: PMSHEET OFSCALE:DATE:JOB NO. MRTG-007

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Revenue: See Exhibit 1 Expenditure: See Exhibit 1

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M E M O R A N D U M

CITY OF CHINO

FINANCE DEPARTMENT

COUNCIL MEETING DATE: MARCH 21, 2023

TO: LINDA REICH, CITY MANAGER

FROM: ROB BURNS, DIRECTOR OF FINANCE

SUBJECT: FISCAL YEAR 2022-23 MID-YEAR FINANCIAL REVIEW.

RECOMMENDATION
1)Receive an d file the Financial Review Status Report; 2) appropriate $ 108,500 from the unappropriated reserves of the General Fund, $113,000 from the unappropriated reserves of the Transportation Fund; $11,000 from the unappropriated reserves of the Community Service s Fund with offsetting revenue appropriations of $51,000; $12,200 from the unappropriated reserves of the Water Fund ; $3,000 from the unappropriated reserves of the Sewer Fund; $1,000 from the unappropriated reserves of the Storm Drain Fund ; $18,800 from t he unappropriated reserves of the Sanitation Fund ; $33,000 from the unappropriated reserves of the Liability Insura nce Fund ; $54,925 from the unappropriated reserves of the Employee Benefits Fund ; and $130,000 from the unappropriated reserves of the Buildi ng Management Fund; 3) approve contract amendments for Blais & Associates ; CT & T Concrete Paving ; ERSC; Guaranteed Janitorial Services ; Hardy & Harper ; Hazelrigg Claims Management Service; IDC Consulting Engineers ; InfoSend; Kimley Horn ; T & B Planning ; and Z & K Consultants; 4) approve an increase to the Purchase Order s for Allison Mechanical and Chino Hills Ford; and 5) authorize the City Manager to execute all necessary documents on behalf of the City.

FISCAL IMPACT
Requires an appropriation of $108,500 from the unappropriated reserves of the General Fund ; $113,000 from the unappropriated reserves of the Transportation Fund; $11,000 from the unappropriated reserves of the Community Services Fund with offsetting revenue appropriations of $51,000; $12,200 from the unappropriated reserves of the Water Fund; $3,000 from the unappropriated reserves of the Sewer Fund; $1,000 from the unappropriated reserves of the Storm Drain Fund; $ 18,800 from the unappropriated reserves of the Sanitation Fund; $3 3,000 from the unappropriated reserves of the Liability Insurance Fund; $ 54,925 from the unappropriated reserves of the Employee Benefits Fund and $130,000 from the unappropriated reserves of the Building Management Fund . There are sufficient fund balances availabl e for these purposes.

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CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES:

The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:

• Financial Stability

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COUNCIL MEETING DATE: MARCH 21, 2023
SUBJECT: FISCAL YEAR 2022-23 MID-YEAR FINANCIAL REVIEW PAGE 3

BACKGROUND
Each year, staff presents to the citizens of Chino and the City Council a financial review of the current fiscal year. This year’s financial review covers the current fiscal year through the end of February 202 3, and includes all areas of operation, with an emphasis on the City’s General Fund. Finance staff met with each department to review and analyze both operating revenues and expenditures to evaluate and identify potential changes from the Fiscal Year (FY) 202 2-23 adopted budget.

ISSUES/ANALYSIS
General Fund

The mid-year analysis closely examined the City’s three major revenue sources of Sales Tax, Property Tax, and Development Related Revenue.

Sales Tax revenue for FY 2022-23 is anticipated to be over budget by $ 400,000 for a total of $36 million. Sales tax receipts, both locally and nationally, have remained steady even with the high inflationary environment that is being experienced.

Property Tax revenue for FY 2022-23 is anticipated to be $ 33.7 million for an increase of $ 1.7 million over the current budget. The majority of this increase is for a corrected property tax misallocation. This correction will result in a one -time property tax receipt of $1.3 million, with on-going property taxes of $470,000. Additionally, general property tax receipts are projected to be up $400,000. While construction of new homes has slowed slightly, property tax is a lagging indicator, meaning it can take up to 2 years for changes in the housing market to impact city revenues.

One-time Development Revenue was budgeted at $ 9.3 million for FY 2022-23. Development activity has slowed slightly in recent months as a result of raising interest rates. It is difficult to project the degree and length of the current slowing in new development. Based on development revenues through the end of February, this revenue source could be under budget by about $1.2 million for the year. This, however, is staff’s best estimate at this point.

All Other Funds

A review of revenues and expenditures in all operating funds was made, measuring them against both the adopted budget amounts, as well as a comparison of the same time last year.

These operating funds include Special Revenue, Internal Service, Development Impact Funds, and Enterprise Funds. Revenues and expenditures for these operating funds are within budgeted amounts except as noted below.

Appropriation Adjustments

As part of the financial review of re venues and expenditures, staff has identified areas of operations that changed after the adoption of the FY 2022-23 Budget. Staff is requesting the following appropriations of revenues and/or expenditures to reflect these changes:

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General Fund
Appropriate $ 50,000 of expenditures for the implementation of the See, Click, Fix software program as directed by City Council at the recent Council Workshop.

Appropriate $3,500 of expenditures for additional Code Enforcement Officers to monitor events throughout the city.

Appropriate $ 30,000 of expenditures for additional Right of Way inspect ion costs associated with development activity in the city.

Appropriate $5,000 to Champion Publications for an increase in ordinance publications , public meeting notifications, and legal notices for development or zoning activity.

Transportation Fund
Appropriate $3,000 to DMJ & Associates for additional in-house concrete purchases.

Community Services Fund
Appropriate $4,000 of expenditures and revenue to PALS Liberty f or increase in the class capacity. This is fully offset by additional revenue received.

Appropriate $7,000 of expenditures and $47,000 of revenue to the batting cages for increase of participation. This is fully offset by additional revenue received.

Sanitation Fund
Appropriate $15,000 to Aleshire & Wynder LLP for additional expenses for sanitation related legal costs.

Employee Benefits Fund
Appropriate $54,925 of expenditures for efforts relating to the City’s Strategic Plan , New Employee Orientation, and Citywide Customer Services Trainings.

Building Management Fund
Appropriate $30,000 of expenditures to Southern California Gas for increase in natural gas costs.

Appropriate $50,000 to Building Management for unexpected Citywide repairs.

Appropriate $50,000 Southern California Edison for increase in utility bills.

Contract Amendments with Appropriations

As part of the financial review of revenues and expenditures, staff has identified the following appropriations requiring contract amendm ents as they exceed $50,000. Staff is requesting contract amendments and appropriations to reflect these changes:

General Fund
Approve a contract amendment with Blais & Associates, increasing the existing contract

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by $20,000 to a total of $ 70,000. This vendor assists the City in securing grants. The change is requested due to additional grant opportunities that might be available for transitional housing services in collaboration with other agencies.

Transportation Fund
Approve a contract amendment with CT&T Concrete Paving, Inc. increasing the existing contract by $110,000 to a total of $ 580,000. This change is requested due to additional concrete repair work throughout the city, as well as increasing concrete prices.

Various Enterprise Funds
Approve a contract amendment with InfoSend, increasing the existing contract by $20,000 to a total of $ 186,500. InfoSend is the City’s utility billing service provider . The requested increase is the result of increased postal rates, as well as the increased number of bills sent due to new development. See Exhibit 1 for the allocation between the Enterprise Funds.

Liability Insurance Fund
Approve a contract amendment with Hazelrigg Claims Management Services, increasing the existing two contracts by $33,000 to a total of $ 128,000. This change results from the increase in the number of liability claims filed against the City.

Contract Amendments without Appropriations

As part of the financial review of revenues and expenditures, staff has identified the follow ing appropriations, requiring contract amendments as they exceed $50,000. Staff is requesting contract amendments to reflect these changes:

General Fund
Approve a contract amendment with ERSC, increasing the existing contract by $130,000 to a total of $ 550,000. This change is requested for additional plan check services. This cost is off-set by additional revenues collected when the service is provided.

Approve a contract amendment with Kimley Horn, increasing the existing contract by $25,000 to a t otal of $246,315. This change is requested for additional work needed related to certification of the City’s Housing Element.

Approve a contract amendment with T & B Planning, increasing the existing contract by $10,000 to a total of $36,280. This chang e is needed for additional work relating to the Francis & Ramona Annexation project.

Transportation Fund
Approve a contract amendment with IDC Consulting Engineers, increasing the existing contract by $50,000 to a total of $ 385,000. This change is reques ted for additional CIP management services.

Approve a contract amendment with Hardy & Harper, increasing the existing contract by $265,000 to a total of $ 783,100. This change is requested for additional needed road repairs.

Landscape and Lighting Fund

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Approve a contract amendment with Guaranteed Janitorial Services , increasing the existing contract by $ 30,000 to a total of $ 253,048. This change is requested for additional hours needed for maintenance at local parks.

Water Fund
Approve a contract amendment with Z & K Consultants, increasing the existing contract by $1 00,000 to a total of $ 450,000. This change is requested for additional CIP management services.

Purchase Order Increases

As part of the financial review of expenditures, staff has id entified the following purchases to specific vendors that are anticipated to exceed amounts authorized by City Council. These requests increase the purchase order only; no additional appropriation is required as these expenditures are within the adopted FY 2022-23 budgeted appropriations:

Vendor

Purpose
Increase
Amount
Total P.O.

Amount
Chino Hills Ford Parts & Repairs $7,000 $67,500
Allison Mechanical Parts & Repairs $25,000 $115,000

CONCLUSION
Changes in the City’s three largest revenue sources, sales tax, property tax, and development revenue, are projected to exceed their combined budget by about $900,000, due largely to a one-time receipt of $1.3 million in misallocated property taxes.

The additional appropriations and contract amendments contained in this staff report will assist staff in continuing to service the needs of the community during this fiscal year.

Attachment: Exhibit 1

RB:hm

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Exhibit 1
Expenditure Account
Number
Expenditure
Amount Revenue Account Number Revenue Amount
General Fund:

Right of Way Inspector Costs 1006500-41020 30,000.00
See, Click, Fix 1002040-43560 50,000.00
Code Enforcement Costs 1006400-41020 3,500.00
Blais & Associates 1002020-43650 20,000.00
Champion Publicatioins 1002030-43200 5,000.00
108,500.00
Transportation Fund:

CT & T Concrete Paving 3207150-43580 110,000.00
DMJ & Associates 3207150-43050 3,000.00
113,000.00
Community Services Fund:

Batting Cage Participation Increase 33082502-41010 4,000.00 Batting Cage Participation Increase 33082502-43050 3,000.00 33082502-58000 47,000.00 Full Capacity of classes for PALS Liberty33081202-41010-N8080 4,000.00 33081202-58000-N8080 4,000.00 11,000.00 51,000.00
Water Fund:

InfoSend 5203100-43650 12,200.00
12,200.00
Sewer Fund:

InfoSend 5303110-43650 3,000.00
3,000.00
Storm Drain Fund:

InfoSend 5403120-43650 1,000.00
1,000.00
Sanitation Fund:

Aleshire & Wynder LLP 5507380-43500 15,000.00
InfoSend 5503130-43650 3,800.00
18,800.00
Insurance/Workers Comp:

Hazelrigg Claims Management Services6305010-43535 33,000.00 33,000.00
Employee Services Fund:

Stratigic Plan Implementation 6405020-43320-N5003 54,925.00 54,925.00
Building Management Fund:

Natural Gas Increase 6508310-43420 30,000.00
Utility Increase 6508310-43430 50,000.00
Additional Citywide Repairs 6508310-43585 50,000.00
130,000.00
Totals Expenditure Total 485,425.00 Revenue Total 51,000.00 Net Appropriations 434,425.00
Summary of Account Codes

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M E M O R A N D U M

CITY OF CHINO

FINANCE DEPARTMENT

COUNCIL MEETING DATE: MARCH 21, 2023

TO: LINDA REICH, CITY MANAGER

FROM: ROB BURNS, DIRECTOR OF FINANCE

SUBJECT: SOLAR POWER PURCHASE AGREEMENT.

RECOMMENDATION
Award a contract to PCS Energy in the amount of $ 0.0998 per kilowatt-hours for the purchase and installation of Solar Photovoltaic (PV) Parking Lot Carports at the Chino Police Department and authorize the City Manager to execute all necessary documents on behalf of the City.

FISCAL IMPACT
There is no cost to the City for the construction, or operations of the PD Solar Carports. This cost is built into the per kilowatt -hour rate the City will pay to PCS Energy. It is anticipated that the City will begin purchasing power from PCS Energy in FY 2023-24. This cost will be included in the Proposed FY 23-24 & 24-25 budget.

CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES:

The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:

• Financial Stability

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BACKGROUND
The City spends approximately $870,000 per year on electricity costs for its buildings. In recent years, the electricity costs have been increasing substantially. An alternative to purchasing electricity from Southern California Edison is through the installation of Solar Photovoltaic (PV) parking lot carports.

In 2018, City Co uncil awarded a contract with EcoMotion to provide solar assessment of the City’s various facilities. EcoMotion completed the assessment, however, the market rates for Power Purchase Agreements were more costly than the savings they would produce for the City. In 2023, EcoMotion re -evaluated the City’s ability to save on electricity costs by focusing on the City’s largest facility and user of electricity, the Chino Police Department. EcoMotion determined that the City could achieve savings through the insta llation of Solar Photovoltaic (PV) parking lot carports and a Power Purchase Agreement (PPA).

A PPA is an arrangement in which a third -party developer installs, owns, and operates an energy system on a customer’s property. The customer then purchases the system’s electric output for a predetermined period. A PPA allows the customer to receive stable and low -cost electricity with no upfront costs, while also enabling the owner of the system to take advantage of tax credits and receive income from the sale o f electricity. The PPA allows the third -party to pay for the project costs of building and maintaining the solar carports while allowing the City to pay a lower per kilowatt hour (kWh) price for the electricity produced by the solar system.

Recently, the California Public Utilities Commission (CPUC) voted to approve Net Metering (NEM) 3.0. Under NEM 3.0 , customers with solar systems are to receive an average of 8 cents per kWh for the excess power they push onto the grid. This is roughly 75% less than the average export rate of 30 cents per kWh under the current NEM 2.0. Customers have until April 14, 2023 to grandfather new solar systems into NEM 2.0 by submitting a complete interconnection application.

Based on consultations with EcoMotion, and several providers of solar carports, staff believes that it is possible to complete the required Interconnection application by the submission deadline. If the application is not submitted by the deadline, the economic benefits of installing Solar Photovoltaic (PV ) parking lot carports solar carports at the Chino Police Department disappear.

Therefore, staff issued a Request for Proposal (RFP) for Solar Photovoltaic (PV) Parking Lot Carports at the Chino Police Department. The City worked with EcoMotion to organiz e an accelerated procurement solicitation for a Power Purchase Agreement to meet the NEM 2.0 deadline.

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ISSUES/ANALYSIS

On January 27, 2023, staff published, via PlanetBids, a Request for Proposal (RFP) for qualified firms to submit a proposal to provide Solar Photovoltaic (PV) Parking Lot Carports at the Chino Police Department. The RFP requires the firms to demonstrate qualifications, resources, expertise, and experience sufficient to undertake and complete the project on a timely and cost - efficient basis. The solar energy installation company selected by the City will be fully responsible for: 1) securing any and all necessary permits and utility agreements; 2) planning, designing, scheduling, constructing, installing, and commissioning the syste ms; 3) financing through a 20 -to-25 year Power Purchase Agreement ; and 4) meeting the April 14, 2023 deadline to grandfather new solar systems into NEM 2.0 by submitting a complete interconnection application.

On February 24, 2023, staff received proposals from (4) four firms. The City's solar assessment consultant, EcoMotion, along with staff , evaluated each proposal using the weighted criteria outlined in the RFP (qualifications, past performance, responsiveness, cost, and timeline). The top two firms p articipated in a finalist interview. Staff ranked the proposals from the responding firms in the following order:

Firm Ranking
PCS Energy 1
Holt Renewables, LLC 2
Motive Energy Storage Systems, Inc. 3
Morpho Energy, LLC 4

PCS Energy received the hi ghest score and is deemed to be the most responsive and responsible firm. The City Attorney’s office has reviewed the Power Purchase Agreement. PCS Energy will sell power to the Chino Police Department at a rate of $0.0989/kWh with a 4% escalator and a ter m of 20 years. The City has one five -year extension option for years 2021- 2025 at $0.05/kWh.

Once the City has received approval of its Interconnection Application from Southern California Edison, PCS Energy will conduct a three -phase construction plan, c ompleting approximately one-third of the parking lot at a time. The construction phases are set to begin during the summer break to limit disruption in the drop-off and pick-up for the adjacent elementary school.

Schedule Dates
Planning 03/23/23 – 06/07/23
Construction Phase 1 06/02/23 – 07/20/23
Construction Phase 2 07/20/23 – 09/07/23
Construction Phase 3 09/07/23 – 10/26/23
Electrical 10/26/23 – 12/13/23
Permission to Operate 12/26/23
Ongoing Monitoring 01/24 – 01/49

12.22 NEW BUSINESS
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COUNCIL MEETING DATE: MARCH 21, 2023
SUBJECT: SOLAR POWER PURCHASE AGREEMENT
PAGE 4

Table 1 shows the expect ed savings the City will achieve through the PPA. The City will save approximately $5,709,318 during the 25-year term. At the end of the contract term, the City will be able to purchase the system at $1.00 or have the Solar Photovoltaic (PV) Parking Lot Carports removed.

Table 1: Estimated Annual Energy Cost Savings for the PD Facility Year
Current SCE Bill
Energy
Purchases (4%
annual escalator)
Reduced SCE Bill
after Solar
Total Annual SCE
Bill Reduction
PPA Payments
for Solar
(1,632,224 kWh at
$0.0989 each)*
Net Energy
Savings
1 $411,284 $137,152 $274,132 $161,427 $112,705
2 $427,735 $144,063 $283,672 $167,045 $116,627
3 $444,845 $151,309 $293,536 $172,854 $120,682
4 $462,639 $158,903 $303,736 $178,860 $124,876
5 $481,144 $166,862 $314,282 $185,070 $129,212
6 $500,390 $175,204 $325,186 $191,491 $133,695
7 $520,405 $183,946 $336,459 $198,129 $138,330
8 $541,222 $193,109 $348,113 $204,992 $143,121
9 $562,871 $202,709 $360,162 $212,087 $148,075
10 $585,385 $212,767 $372,618 $219,422 $153,196
11 $608,801 $223,307 $385,494 $227,004 $158,490
12 $633,153 $234,350 $398,803 $234,842 $163,961
13 $658,479 $245,918 $412,561 $242,943 $169,618
14 $684,818 $258,037 $426,781 $251,317 $175,464
15 $712,211 $270,732 $441,479 $259,972 $181,507
16 $740,699 $284,030 $456,669 $268,917 $187,752
17 $770,327 $297,958 $472,369 $278,162 $194,207
18 $801,140 $312,546 $488,594 $287,717 $200,877
19 $833,186 $327,825 $505,361 $297,590 $207,771
20 $866,513 $343,826 $522,687 $307,793 $214,894
21 $901,174 $360,582 $540,592 $72,713 $467,879
22 $937,221 $378,129 $559,092 $72,350 $486,742
23 $974,710 $396,503 $578,207 $71,988 $506,219
24 $1,013,698 $415,741 $597,957 $71,628 $526,329
25 $1,054,246 $435,884 $618,362 $71,270 $547,092
Totals: $17,128,296 $6,511,392 $10,616,904 $4,907,582 $5,709,322 *PPA price rises at 4% then drops to $0.05 per kWh last 5 years.*

12.22 NEW BUSINESS
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COUNCIL MEETING DATE: MARCH 21, 2023
SUBJECT: SOLAR POWER PURCHASE AGREEMENT
PAGE 5

It is, therefore, staff's recommendation that the Cit y Council award and authorize a Power Purchase Agreement to PCS Energy for Solar Photovoltaic (PV) parking lot carports at the Chino Police Department.

Attachment: Solar Panel Design Concept

12.22 NEW BUSINESS
Packet Pg. 474

12.22.a
Solar Power Purchase Agreement
Packet Pg. 475
Solar Power Purchase Agreement This Solar Power Purchase Agreement (this “Agreement”) is entered into by the parties listed below (each a “Party” and collectively the “Parties”) as of the date signed by Seller below (the “Effective Date”). Purchaser: Seller: Name and Address City of Chino 5450 Guardian Way Chino, CA 91710 Name and Address PCS Energy, LLC 3947 Landmark Street, Culver City, CA 90232 Attention: Joseph Pekarovic Phone (909) 334-3000 Phone (310) 600-9448 E-mail @ E-mail [email protected] Premises Ownership Purchaser [_] owns [_] leases the Premises. List Premises Owner, if different from Purchaser:

Additional Seller Information
This Agreement sets forth the terms and conditions of the purchase and sale of solar generated electric energy from the solar panel system described in Exhibit 2 (the “System”) and installed at the Purchaser’s facility described in Exhibit 2 (the “Facility”). The exhibits listed below are incorporated by reference and made part of this Agreement. Exhibit 1 Basic Terms and Conditions Exhibit 2 System Description Exhibit 3 General Terms and Conditions Exhibit 4 Form of Memorandum of License Exhibit 5 Form of Easement Agreement Purchaser: City of Chino Signature: Seller: PCS Energy, LLC Signature: Printed Name: Printed Name: Joseph Pekarovic Title: Title: Principal Date: Date:

12.22.b
Solar Power Purchase Agreement
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Exhibit 1 Basic Terms and Conditions 1. Term: Twenty (20) years, beginning on the Commercial Operation Date. 2. Optional Additional Terms: Up to one (1) Additional Term of five (5) years. 3. Environmental Incentives and Environment Attributes: Accrue to Purchaser. 4. Contract Price: Contract Year $/kWh 1 $ 0.0989 2 $ 0.1029 3 $ 0.1070 4 $ 0.1112 5 $ 0.1157 6 $ 0.1203 7 $ 0.1251 8 $ 0.1301 9 $ 0.1354 10 $ 0.1408 11 $ 0.1464 12 $ 0.1523 13 $ 0.1583 14 $ 0.1647 15 $ 0.1713 16 $ 0.1781 17 $ 0.1852 18 $ 0.1926 19 $ 0.2084 20 $ 0.05 21 $ 0.05 22 $ 0.05 23 $ 0.05 24 $ 0.05 25 $ 0.05 5. Condition Satisfaction Date: , 2023 6. Anticipated Commercial Operation Date: January 1st, 2024 7. Purchaser Options to Purchase System. [_] None [_] or as set forth in Section 15(b). 8. Outside Commercial Operation Date: [ ]. 9. System Installation: Includes: [X] Design, engineering, permitting, installation, monitoring, rebate application and paperwork processing of the System. [X] Limited Warranty: Per Exhibit 3 [X] Any like substantive equipment, in the sole discretion of the Seller. [_] State or Utility Rebate, if any. Describe: Excludes: Unforeseen groundwork (including, but not limited to, excavation/circumvention of underground obstacles), upgrades or repair to the Facility or utility electrical infrastructure.

12.22.b
Solar Power Purchase Agreement
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Exhibit 2 System Description 1. System Location: 5450 Guardian Way, Chino, CA 91710 2. Estimated System Size (kWDC): 1,123.2 3. Estimated First Year Energy Production (kWh): 1,677,082 kWh 4. Guaranteed First Year Energy Production (kWh): 1,509,373 kWh 5. Expected Structure: Carport Structure 6. Expected Module(s): Manufacturer/Model Quantity Hanwha Q.Peak Duo XL-G10.3/BGF 480W 2,340 7. Expected Inverter(s): Manufacturer/Model Quantity Yaskawa Solectria PVI-60TL-480 15 8. Facility and System Layout: See Exhibit 2, Attachment A 9. Utility: Southern California Edison

12.22.b
Solar Power Purchase Agreement
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Exhibit 2 Attachment A: Facility and System Layout An Aerial Photograph of the Facility To be provided after survey Conceptual Drawing of the System Provided in the RFP response documents Delivery Point [written description of Delivery Point, also indicate below] Access Points [written description of access points needed to install and service System, also indicate below]

12.22.b
Solar Power Purchase Agreement
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Exhibit 3 Solar Power Purchase Agreement General Terms and Conditions 1. Definitions and Interpretation: Unless otherwise defined or required by the context in which any term appears: (a) the singular includes the plural and vice versa; (b) the words “herein,” “hereof” and “hereunder” refer to this Agreement as a whole and not to any particular section or subsection of this Agreement; (c) references to any agreement, document or instrument mean such agreement, document or instrument as amended, modified, supplemented or replaced from time to time; and (d) the words “include,” “includes” and “including” mean include, includes and including “without limitation.” The captions or headings in this Agreement are strictly for convenience and shall not be considered in interpreting this Agreement. 2. Purchase and Sale of Electricity. Purchaser shall purchase from Seller, and Seller shall sell to Purchaser, all of the electric energy generated by the System during the Initial Term and any Additional Term (as defined in Exhibit 1, and collectively the “Term”). Electric energy generated by the System will be delivered to Purchaser at the delivery point identified on Exhibit 2 (the “Delivery Point”). Purchaser shall take title to the electric energy generated by the System at the Delivery Point, and risk of loss will pass from Seller to Purchaser at the Delivery Point. Purchaser may purchase electric energy for the Facility from other sources if the Purchaser's electric requirements at the Facility exceed the output of the System. Any purchase, sale and/or delivery of electric energy generated by the System prior to the Commercial Operation Date shall be treated as purchase, sale and/or delivery of limited amounts of test energy only and shall not indicate that the System has been put in commercial operation by the purchase, sale and/or delivery of such test energy. • Performance Guarantee: Seller guarantees that during the term of the PPA the System will generate the guaranteed kilowatt-hours (kWh) (“Guaranteed kWh”) of energy set forth as follows: • A. If at the end of each successive calendar year anniversary of the Commercial Operation Date the cumulative Actual kWh (defined below) generated by the System is less than the 90% guaranteed kWh (defined below), then Seller will send Purchaser a refund check equal to $0.03 kWh with a 4% annual escalator for the difference between the Guaranteed kWh and the cumulative Actual kWh. Seller will make that payment within thirty (30) days after the end of the relevant calendar year. • B. If at the end of each successive sixty (60) month anniversary of the Commercial Operation Date the Actual kWh is greater than the Guaranteed kWh during any sixty (60) month period, this surplus will be carried over and will be used to offset any deficits that may occur in the next true up period. • C. Guaranteed kilowatt-hours Contract Year kWh 1 1,509,373 2 1,501,826 3 1,494,317 4 1,486,845 5 1,479,411 6 1,472,014 7 1,464,654 8 1,457,331 9 1,450,044 10 1,442,794 11 1,435,580 12 1,428,402 13 1,421,260 14 1,414,154 15 1,407,083 16 1,400,048 17 1,393,047 18 1,386,082 19 1,379,152 20 1,372,256 21 1,365,395

12.22.b
Solar Power Purchase Agreement
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22 1,358,568 23 1,351,775 24 1,345,016 25 1,338,291 • “Actual kWh” means the AC electricity produced by the System and delivered to Purchaser at the Delivery Point in kilowatt-hours measured and recorded by Seller during each successive calendar year anniversary of the Commercial Operation Date. To measure the Actual kWh we will use the agreed upon revenue-grade monitoring service. 3. Term and Termination. a. Initial Term. The initial term (“Initial Term”) of this Agreement shall commence on the Commercial Operation Date (as defined below) and continue for the length of time specified in Exhibit 1, unless earlier terminated as provided for in this Agreement. The “Commercial Operation Date” is the date Seller gives Purchaser written notice that the System is mechanically complete and capable of providing electric energy to the Delivery Point. Such notice shall be deemed effective unless Purchaser reasonably objects within five (5) days of the date of such notice. Upon Purchaser’s request, Seller will give Purchaser copies of certificates of completion or similar documentation from Seller’s contractor(s) and the interconnection or similar agreement with the entity authorized and required under applicable law to provide electric distribution service to Purchaser at the Facility (the “Utility”), as set forth on Exhibit 2. This Agreement is effective as of the Effective Date and Purchaser’s failure to enable Seller to provide the electric energy by preventing it from installing the System or otherwise not performing shall not excuse Purchaser’s obligations to make payments that otherwise would have been due under this Agreement. b. Additional Terms. Prior to the end of the Initial 20-Year Term or of any applicable Additional Term, as defined below, if Purchaser has not exercised its option to purchase the System, the term shall automatically renew for one Additional five-year (5) Term. Seller to provide City with prior written notice of the automatic extension. The extended term shall adhere to the same terms in this Agreement on the terms and conditions set forth herein for the number and length of additional periods specified in Exhibit 1 (each such additional period, an “Additional Term”). Should the Purchaser select to Purchase the system, Purchaser shall notify the Seller in writing. Such notice shall be given, if at all, not more than one hundred twenty (120) and not less than sixty (60) days before the last day of the Initial Term or the then current Additional Term, as applicable. Failure to provide a written request to the Seller to purchase the system within such thirty (30) day period shall be deemed an automatic acceptance for one Additional Five-Year Term. The Additional Term shall begin immediately upon the conclusion of the Initial Term or the then current term on the same terms and conditions as set forth in this Agreement. c. The Party receiving the notice requesting an Additional Term shall respond positively or negatively to that request in writing within thirty (30) days after receipt of the request. Failure to respond within such thirty (30) day period shall be deemed a rejection of the offer for an Additional Term. If both Parties agree to an Additional Term, the Additional Term shall begin immediately upon the conclusion of the Initial Term or the then current term on the same terms and conditions as set forth in this Agreement. If the Party receiving the request for an Additional Term rejects or is deemed to reject the first Party’s offer, this Agreement shall terminate at the end of the Initial Term (if the same has not been extended) or the then current Additional Term. 4. Billing and Payment. a. Monthly Charges. Purchaser shall pay Seller monthly for the electric energy generated by the System and delivered to the Delivery Point at the $/kWh rate shown in Exhibit 1 (the “Contract Price”). The monthly payment for such energy will be equal to the applicable $/kWh rate multiplied by the number of kWh of energy generated during the applicable month, as measured by the System meter. b. Monthly Invoices. Seller shall invoice Purchaser monthly, either manually or through ACH. Such monthly invoices shall state (i) the amount of electric energy produced by the System and delivered to the Delivery Point, (ii) the rates applicable to, and charges incurred by, Purchaser under this Agreement and (iii) the total amount due from Purchaser. The Contract Price includes ACH invoicing and any charges related to the electric energy produced by the system, except as provided in Section 4(c) below. c. Taxes. Purchaser shall either pay or reimburse Seller for any and all taxes assessed on the generation, sale, delivery or consumption of electric energy produced by the System or the interconnection of the

12.22.b
Solar Power Purchase Agreement
Packet Pg. 481
System to the Utility’s electric distribution system, including property taxes on the System; provided, however, Purchaser will not be required to pay or reimburse Seller for any taxes during periods when Seller fails to deliver electric energy to Purchaser for reasons other than Force Majeure or as a result of Purchaser’s acts or omissions. For purposes of this Section 4(d), “Taxes” means any federal, state and local ad valorem, property, occupation, generation, privilege, sales, use, consumption, excise, transaction, and other taxes, regulatory fees, surcharges or other similar charges, but shall not include any income taxes or similar taxes imposed on Seller’s revenues due to the sale of energy under this Agreement, which shall be Seller’s responsibility. d. Payment Terms. All amounts due under this Agreement shall be due and payable net thirty (30) days from receipt of invoice. Any undisputed portion of the invoice amount not paid within the twenty (20) day period shall accrue interest at the annual rate of two and one-half percent (2.5%) over the prime rate, as published in the Wall Street Journal (but not to exceed the maximum rate permitted by law). 5. Environmental Attributes and Environmental Incentives. Unless otherwise specified on Exhibit 1, Purchaser is the owner of all Environmental Attributes and Environmental Incentives and Seller is entitled to the benefit of all Tax Credits, and Purchaser’s purchase of electricity under this Agreement includes Environmental Attributes, Environmental Incentives or any other environmental attributes. Purchaser shall cooperate with Seller in obtaining, securing and transferring all Environmental Attributes and Environmental Incentives, including by using the electric energy generated by the System in a manner necessary to qualify for such available Environmental Attributes and Environmental Incentives. Purchaser shall not be obligated to incur any out–of–pocket costs or expenses in connection with such actions unless reimbursed by Seller. “Environmental Attributes” means any and all credits, benefits, emissions reductions, offsets, and allowances, howsoever entitled, attributable to the System, the production of electrical energy from the System and its displacement of conventional energy generation, including (a) any avoided emissions of pollutants to the air, soil or water such as sulfur oxides (SOx), nitrogen oxides (NOx), carbon monoxide (CO) and other pollutants; (b) any avoided emissions of carbon dioxide (CO2), methane (CH4), nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride and other greenhouse gases (GHGs) that have been determined by the United Nations Intergovernmental Panel on Climate Change, or otherwise by law, to contribute to the actual or potential threat of altering the Earth’s climate by trapping heat in the atmosphere; and (c) the reporting rights related to these avoided emissions, such as Green Tag Reporting Rights and Renewable Energy Credits. Green Tag Reporting Rights are the right of a party to report the ownership of accumulated Green Tags in compliance with federal or state law, if applicable, and to a federal or state agency or any other party, and include Green Tag Reporting Rights accruing under Section 1605(b) of The Energy Policy Act of 1992 and any present or future federal, state, or local law, regulation or bill, and international or foreign emissions trading program. Environmental Attributes do not include Environmental Incentives and Tax Credits. Purchaser and Seller shall file all tax returns in a manner consistent with this Section 5. Without limiting the generality of the foregoing, Environmental Attributes include carbon trading credits, renewable energy credits or certificates, emissions reduction credits, emissions allowances, green tags tradable renewable credits and Green-e® products. “Environmental Incentives” means any and all credits, rebates, subsidies, payments or other incentives that relate to self–generation of electricity, the use of technology incorporated into the System, environmental benefits of using the System, or other similar programs available from the Utility, any other regulated entity, the manufacturer of any part of the System or any Governmental Authority. “Governmental Authority” means any national, state or local government (whether domestic or foreign), any political subdivision thereof or any other governmental, quasi-governmental, judicial, public or statutory instrumentality, authority, body, agency, bureau or entity (including the Federal Energy Regulatory Commission or the California Public Utilities Commission), or any arbitrator with authority to bind a party at law. “Tax Credits” means any and all (a) investment tax credits, (b) production tax credits and (c) similar tax credits or grants under federal, state or local law relating to the construction, ownership or production of energy from the System. 6. Conditions to Obligations. a. Conditions to Seller’s Obligations. Seller’s obligations under this Agreement are conditioned on the completion of the following conditions to Seller’s reasonable satisfaction on or before the Condition Satisfaction Date:

12.22.b
Solar Power Purchase Agreement
Packet Pg. 482
i. Completion of a physical inspection of the Facility and the property upon which the Facility is located (the “Premises”) including, if applicable, geotechnical work, and real estate due diligence to confirm the suitability of the Facility and the Premises for the System; ii. Approval of (A) this Agreement and (B) the Construction Agreement (if any) for the System by Seller’s Financing Parties. “Construction Agreement” as used in this subsection means an agreement between Seller and any contractor or subcontractor to install the System; iii. Confirmation that Seller will obtain all applicable Tax Credits; iv. Receipt of all necessary zoning, land use and building permits; and v. Execution of all necessary agreements with the Utility for interconnection of the System to Facility electrical system and/or the Utility’s electric distribution system. b. Failure of Conditions. If any of the conditions listed in subsection (a) are not satisfied by the Condition Satisfaction Date, the Parties will attempt in good faith to negotiate new dates for the satisfaction of the failed conditions. If the Parties are unable to negotiate new dates, then Seller and Purchaser may mutually agree to terminate this Agreement without liability for costs or damages or triggering a default under this Agreement. c. Commencement of Construction. Seller’s obligation to commence construction and installation of the System is conditioned on Seller’s receipt of (A) proof of insurance for all insurance required to be maintained by Purchaser under this Agreement, (B) written confirmation from any person holding a mortgage, lien or other encumbrance over the Premises or the Facility, as applicable, that such person will recognize Seller’s rights under this Agreement for as long Seller is not in default hereunder and (C), a signed and notarized original copy of the easement agreement suitable for recording, substantially in the form attached hereto as Exhibit 5 (the “Easement Agreement”). d. Conditions to Purchaser’s Obligations. Purchaser’s obligations under Section 4(a) are conditioned on the occurrence of the Commercial Operation Date for the System by the Outside Commercial Operation Date. 7. Seller’s Rights and Obligations. a. Permits and Approvals. Seller, with Purchaser’s reasonable cooperation, shall use commercially reasonable efforts to obtain, at its sole cost and expense: i. any zoning, land use and building permits required to construct, install and operate the System; and ii. any agreements and approvals from the Utility necessary in order to interconnect the System to the Facility electrical system and/or the Utility’s electric distribution system. Purchaser shall cooperate with Seller’s reasonable requests to assist Seller in obtaining such agreements, permits and approvals. b. Standard System Repair and Maintenance. Seller shall construct and install the System at the Facility. During the Term, Seller will operate and perform all routine and emergency repairs to, and maintenance of, the System at its sole cost and expense, except for any repairs or maintenance resulting from Purchaser’s negligence, willful misconduct or breach of this Agreement. Seller shall not be responsible for any work done by others on any part of the System unless Seller authorizes that work in advance in writing. Seller shall not be responsible for any loss, damage, cost or expense arising out of or resulting from improper environmental controls or improper operation or maintenance of the System by anyone other than Seller or Seller’s contractors. If the System requires repairs for which Purchaser is responsible, Purchaser shall pay Seller for diagnosing and correcting the problem at Seller or Seller’s contractors’ then current standard rates. Seller shall provide Purchaser with reasonable notice prior to accessing the Facility to make standard repairs. c. Non-Standard System Repair and Maintenance. If Seller incurs incremental costs to maintain the System due to conditions at the Facility or due to the inaccuracy of any information provided by Purchaser

12.22.b
Solar Power Purchase Agreement
Packet Pg. 483
and relied upon by Seller, the pricing, schedule and other terms of this Agreement will be equitably adjusted to compensate for any work in excess of normally expected work required to be performed by Seller. In such event, the Parties will negotiate such equitable adjustment in good faith. d. Breakdown Notice. Seller shall notify Purchaser within twenty-four (24) hours following Seller’s discovery of (i) any material malfunction in the operation of the System or (ii) an interruption in the supply of electrical energy from the System. Purchaser and Seller shall each designate personnel and establish procedures such that each Party may provide notice of such conditions requiring Seller’s repair or alteration at all times, twenty-four (24) hours per day, including weekends and holidays. Purchaser shall notify Seller immediately upon the discovery of an emergency condition affecting the System. e. Suspension. Notwithstanding anything to the contrary herein, Seller shall be entitled to suspend delivery of electricity from the System to the Delivery Point for the purpose of maintaining and repairing the System and such suspension of service shall not constitute a breach of this Agreement; provided, that Seller shall use commercially reasonable efforts to minimize any interruption in service to the Purchaser. f. Use of Contractors and Subcontractors. Seller shall be permitted to use contractors and subcontractors to perform its obligations under this Agreement, provided however, that such contractors and subcontractors shall be duly licensed and shall provide any work in accordance with applicable industry standards. Notwithstanding the foregoing, Seller shall continue to be responsible for the quality of the work performed by its contractors and subcontractors. g. Liens and Payment of Contractors and Suppliers. Seller shall pay when due all valid charges from all contractors, subcontractors and suppliers supplying goods or services to Seller under this Agreement and shall keep the Facility free and clear of any liens related to such charges, except for those liens which Seller is permitted by law to place on the Facility following non-payment by Purchaser of amounts due under this Agreement. Seller shall indemnify Purchaser for all claims, losses, damages, liabilities and expenses resulting from any liens filed against the Facility or the Premises in connection with such charges; provided, however, that Seller shall have the right to contest any such lien, so long as it provides a statutory bond or other reasonable assurances of payment that either remove such lien from title to the Facility and the Premises or that assure that any adverse judgment with respect to such lien will be paid without affecting title to the Facility and the Premises. h. No Warranty. NO WARRANTY OR REMEDY, WHETHER STATUTORY, WRITTEN, ORAL, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, OR WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE SHALL APPLY. The remedies set forth in this Agreement shall be Purchaser’s sole and exclusive remedies for any claim or liability arising out of or in connection with this Agreement, whether arising in contract, tort (including negligence), strict liability or otherwise. The Limited Warranty will provide Purchaser with a separate contract from this Agreement. No rights provided to Purchaser by the Limited Warranty may be asserted under this Agreement. No warranty is made in this Agreement. Therefore, any warranty claim must be made independently of this Agreement and will not affect Purchaser’s obligations under this Agreement. 8. Purchaser’s Rights and Obligations. a. License to the Premises; Facility Access Rights. Purchaser grants to Seller and to Seller’s agents, employees, contractors and assignees an irrevocable non-exclusive license running with the Premises (the “License”) for access to, on, over, under and across the Premises for the purposes of (i) installing, constructing, operating, owning, maintaining, accessing, removing and replacing the System; (ii) performing all of Seller’s obligations and enforcing all of Seller’s rights set forth in this Agreement; and (iii) installing, using and maintaining electric lines and equipment, including inverters and meters necessary to interconnect the System to Purchaser’s electric system at the Facility, to the Utility’s electric distribution system, if any, or for any other purpose that may from time to time be useful or necessary in connection with the construction, installation, operation, maintenance or repair of the System. Seller shall notify Purchaser prior to entering the Facility except in situations where there is imminent risk of damage to persons or property. The term of the License shall continue until the date that is one hundred and twenty (120) days following the date of expiration or termination of this Agreement (the “License Term”). During

12.22.b
Solar Power Purchase Agreement
Packet Pg. 484
the License Term, Purchaser shall ensure that Seller’s rights under the License and Seller’s access to the Premises and the Facility are preserved and protected. Purchaser shall not interfere with nor shall permit any third parties to interfere with such rights or access. The grant of the License shall survive termination of this Agreement by either Party. At request of Seller, Purchaser shall execute a memorandum of License, and which shall be in form and substance set forth Exhibit 4, or other form agreed to by the parties. Seller may, at its sole cost and expense, record such memorandum of License with the appropriate land registry or recorder’s office. b. OSHA Compliance. Both parties shall ensure that all Occupational Safety and Health Act (OSHA) requirements and other similar applicable safety laws or codes are adhered to in their performance under this Agreement. c. Maintenance of Facility. Purchaser shall, at its sole cost and expense, maintain the Facility in good condition and repair. Purchaser will ensure that the Facility remains interconnected to the Utility’s electric distribution system at all times and will not cause cessation of electric service to the Facility from the Utility. Purchaser is fully responsible for the maintenance and repair of the Facility’s electrical system and of all of Purchaser’s equipment that utilizes the System’s outputs. Purchaser shall properly maintain in full working order all of Purchaser’s electric supply or generation equipment that Purchaser may shut down while utilizing the System. Purchaser shall promptly notify Seller of any matters of which it is aware pertaining to any damage to or loss of use of the System or that could reasonably be expected to adversely affect the System. d. No Alteration of Facility. Purchaser shall not make any alterations or repairs to the Facility which could adversely affect the operation and maintenance of the System without Seller’s prior written consent, which consent shall not be unreasonably withheld. If Purchaser wishes to make such alterations or repairs, Purchaser shall give prior written notice to Seller, setting forth the work to be undertaken (except for emergency repairs, for which notice may be given by telephone), and give Seller the opportunity to advise Purchaser in making such alterations or repairs in a manner that avoids damage to the System, but, notwithstanding any such advice, Purchaser shall be responsible for all damage to the System caused by Purchaser or its contractors. To the extent that temporary disconnection or removal of the System is necessary to perform such alterations or repairs, such work and any replacement of the System after completion of Purchaser’s alterations and repairs, shall be done by Seller or its contractors at Purchaser’s cost. In addition, Purchaser shall pay Seller an amount equal to the sum of (i) payments that Purchaser would have made to Seller hereunder for electric energy that would have been produced by the System during such disconnection or removal; (ii) revenues that Seller would have received with respect to the System under the any rebate program and any other assistance program with respect to electric energy that would have been produced during such disconnection or removal; (iii) revenues from Environmental Attributes that Seller would have received with respect to electric energy that would have been produced by the System during such disconnection or removal; and (iv) Tax Credits that Seller (or, if Seller is a pass-through entity for tax purposes, Seller’s owners) would have received with respect to electric energy that would have been produced by the System during such disconnection or removal. Determination of the amount of energy that would have been produced during any disconnection or removal shall be in accordance with the procedures in Section 10(b). All of Purchaser’s alterations and repairs will be done in a good and workmanlike manner and in compliance with all applicable laws, codes and permits. e. Outages. Purchaser shall be permitted to be off line for a total of forty-eight (48) daylight hours (each, a “Scheduled Outage”) per calendar year during the Term, during which hours Purchaser shall not be obligated to accept or pay for electricity from the System; provided, however, that Purchaser must notify Seller in writing of each such Scheduled Outage at least forty-eight (48) hours in advance of the commencement of a Scheduled Outage. In the event that Scheduled Outages exceed a total of forty-eight (48) daylight hours per calendar year or there are unscheduled outages, in each case for a reason other than a Force Majeure event, Purchaser shall pay Seller an amount equal to the sum of (i) payments that Purchaser would have made to Seller hereunder for electric energy that would have been produced by the System during the outage; (ii) revenues that Seller would have received with respect to the System under the any rebate program and any other assistance program with respect to electric energy that would have been produced during the outage; (iii) revenues from Environmental Attributes that Seller would have received with respect to electric energy that would have been produced by the System during the outage; and (iv) Tax Credits that Seller (or, if Seller is a pass-through entity for tax purposes, Seller’s owners) would have received with respect to electric energy that would have been produced by the System during the outage. Determination of the amount of energy that would have been produced during the removal or disconnection shall be in accordance with the procedures in Section 10(b).

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f. Liens. Purchaser shall not directly or indirectly cause, create, incur, assume or allow to exist any mortgage, pledge, lien, charge, security interest, encumbrance or other claim of any nature on or with respect to the System or any interest therein. Purchaser shall immediately notify Seller in writing of the existence of any such mortgage, pledge, lien, charge, security interest, encumbrance or other claim, shall promptly cause the same to be discharged and released of record without cost to Seller, and shall indemnify Seller against all costs and expenses (including reasonable attorneys’ fees) incurred in discharging and releasing any such mortgage, pledge, lien, charge, security interest, encumbrance or other claim. Notwithstanding anything else herein to the contrary, pursuant to Section 18.a), Seller may grant a lien on the System and may assign, mortgage, pledge or otherwise collaterally assign its interests in this Agreement and the System to any Financing Party. g. Security. Purchaser shall be responsible for using commercially reasonable efforts to maintain the physical security of the Facility and the System against known risks and risks that should have been known by Purchaser. Purchaser will not conduct activities on, in or about the Premises or the Facility that have a reasonable likelihood of causing damage, impairment or otherwise adversely affecting the System. h. Insolation. Purchaser understands that unobstructed access to sunlight (“Insolation”) is essential to Seller’s performance of its obligations and a material term of this Agreement. Purchaser shall not in any way cause and, where possible, shall not in any way permit any interference with the System’s Insolation. If Purchaser becomes aware of any activity or condition that could diminish the Insolation of the System, Purchaser shall notify Seller immediately and shall cooperate with Seller in preserving the System’s existing Insolation levels. The Parties agree that reducing Insolation would irreparably injure Seller, that such injury may not be adequately compensated by an award of money damages, and that Seller is entitled to seek specific enforcement of this Section 8(h) against Purchaser. i. Breakdown Notice. Purchaser shall notify Seller within twenty-four (24) hours following the discovery by it of (i) any material malfunction in the operation of the System; or (ii) any occurrences that could reasonably be expected to adversely affect the System. Purchaser shall notify Seller immediately upon (i) an interruption in the supply of electrical energy from the System; or (ii) the discovery of an emergency condition respecting the System. Purchaser and Seller shall each designate personnel and establish procedures such that each Party may provide notice of such conditions requiring Seller’s repair or alteration at all times, twenty-four (24) hours per day, including weekends and holidays. 9. Change in Law. “Change in Law” means (i) the enactment, adoption, promulgation, modification or repeal after the Effective Date of any applicable law or regulation; (ii) the imposition of any material conditions on the issuance or renewal of any applicable permit after the Effective Date of this Agreement (notwithstanding the general requirements contained in any applicable Permit at the time of application or issue to comply with future laws, ordinances, codes, rules, regulations or similar legislation), or (iii) a change in any utility rate schedule or tariff approved by any Governmental Authority which in the case of any of (i), (ii) or (iii), establishes requirements affecting owning, supplying, constructing, installing, operating or maintaining the System, or other performance of the Seller’s obligations hereunder and which has a material adverse effect on the cost to Seller of performing such obligations; provided, that a change in federal, state, county or any other tax law after the Effective Date of this Agreement shall not be a Change in Law pursuant to this Agreement. If any Change in Law occurs that has a material adverse effect on the cost to Seller of performing its obligations under this Agreement, then the Parties shall, within thirty (30) days following receipt by Purchaser from Seller of notice of such Change in Law, meet and attempt in good faith to negotiate amendments to this Agreement as are reasonably necessary to preserve the economic value of this Agreement to both Parties. If the Parties are unable to agree upon such amendments within such thirty (30) day period, then Seller shall have the right to terminate this Agreement without further liability to either Party except with respect to payment of amounts accrued prior to termination. 10. Relocation of System. a. System Relocation. If Purchaser ceases to conduct business operations at the Facility, or otherwise vacates the Facility prior to the expiration of the Term, Purchaser shall have the option to provide Seller with a mutually agreeable substitute premises located within the same utility district as the terminated System or in a location with similar utility rates and Insolation. Purchaser shall provide written notice at least sixty (60) days but not more than one hundred eighty (180) days prior to the date that it wants to make

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this substitution. In connection with such substitution, Purchaser shall execute an amended agreement that shall have all of the same terms as this Agreement except for the (i) Effective Date; (ii) License, which will be amended to grant rights in the real property where the System relocated to; and (iii) Term, which will be equal to the remainder of the Term of this Agreement calculated starting at the shutdown of the System pursuant to such relocation, and shall toll until the relocated System achieves commercial operation of such new location. Such amended agreement shall be deemed to be a continuation of this Agreement without termination. In addition, Purchaser shall be obligated to provide a new executed and notarized easement agreement covering the substitute premises in form and content substantially similar to the Easement Agreement. Purchaser shall also provide any new consents, estoppels, or acknowledgments reasonably required by Financing Parties in connection with the substitute premises. b. Costs of Relocation. Purchaser shall pay all costs associated with relocation of the System, including all costs and expenses incurred by or on behalf of Seller in connection with removal of the System from the Facility and installation and testing of the System at the substitute facility and all applicable interconnection fees and expenses at the substitute facility, as well as costs of new title search and other out-of-pocket expenses connected to preserving and refiling the security interests of Seller’s Financing Parties in the System. In addition, Purchaser shall pay Seller an amount equal to the sum of (i) payments that Purchaser would have made to Seller hereunder for electric energy that would have been produced by the System during the relocation; (ii) revenues that Seller would have received with respect to the System under the any rebate program and any other assistance program with respect to electric energy that would have been produced during the relocation; ; (iii) revenues from Environmental Attributes that Seller would have received with respect to electric energy that would have been produced by the System during the relocation; and (iv) Tax Credits that Seller (or, if Seller is a pass-through entity for tax purposes, Seller’s owners) would have received with respect to electric energy that would have been produced by the System during the relocation. Determination of the amount of energy that would have been produced during the relocation shall be based, during the first Contract Year, on the estimated levels of production and, after the first Contract Year, based on actual operation of the System in the same period in the previous Contract Year, unless Seller and Purchaser mutually agree to an alternative methodology. “Contract Year” means the twelve month period beginning at 12:00 AM on the Commercial Operation Date or on any anniversary of the Commercial Operation Date and ending at 11:59 PM on the day immediately preceding the next anniversary of the Commercial Operation Date, provided that the first Contract Year shall begin on the Commercial Operation Date. c. Adjustment for Insolation; Termination. Seller shall remove the System from the vacated Facility prior to the termination of Purchaser’s ownership, lease or other rights to use such Facility. Seller will not be required to restore the Facility to its prior condition but shall promptly pay Purchaser for any damage caused by Seller during removal of the System, but not for normal wear and tear. If the substitute facility has inferior Insolation as compared to the original Facility, Seller shall have the right to make an adjustment to Exhibit 1 such that Purchaser’s payments to Seller are the same as if the System were located at the original Facility, increased to the extent necessary to compensate Seller for reduced revenues from Environmental Attributes and reduced Tax Credits that Seller (or, if Seller is a pass-through entity for tax purposes, Seller’s owners) receive as a result of the relocation. If Purchaser is unable to provide such substitute facility and to relocate the System as provided, any early termination will be treated as a default by Purchaser. 11. Measurement. Seller shall install one or more meter(s), as Seller deems appropriate, at or immediately before the Delivery Point to measure the output of the System. Such meter shall meet the general commercial standards of the solar photovoltaic industry or the required standard of the Utility. Seller shall maintain the meter(s) in accordance with industry standards. 12. Default, Remedies and Damages. a. Default. Any Party that fails to perform its responsibilities as listed below or experiences any of the circumstances listed below shall be deemed to be the “Defaulting Party”, the other Party shall be deemed to be the “Non-Defaulting Party”, and each event of default shall be a “Default Event”: i. failure of a Party to pay any amount due and payable under this Agreement, other than an amount that is subject to a good faith dispute, within ten (10) days following receipt of written notice from the Non-Defaulting Party of such failure to pay (“Payment Default”);

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ii. failure of a Party to substantially perform any other material obligation under this Agreement within thirty (30) days following receipt of written notice from the Non-Defaulting Party demanding such cure; provided, that such thirty (30) day cure period shall be extended (but not beyond ninety (90) days) if and to the extent reasonably necessary to cure the Default Event, if (A) the Defaulting Party initiates such cure within the thirty (30) day period and continues such cure to completion and (B) there is no material adverse effect on the Non-Defaulting Party resulting from the failure to cure the Default Event; iii. if any representation or warranty of a Party proves at any time to have been incorrect in any material respect when made and is material to the transactions contemplated hereby, if the effect of such incorrectness is not cured within thirty (30) days following receipt of written notice from the Non- Defaulting Party demanding such cure; iv. Purchaser loses its rights to occupy and enjoy the Premises; v. a Party becomes insolvent or is a party to a bankruptcy, reorganization, insolvency, liquidation, receivership, dissolution, winding-up or relief of debtors, or any general assignment for the benefit of creditors or other similar arrangement or any event occurs or proceedings are taken in any jurisdiction with respect to the Party which has a similar effect, and, if any such bankruptcy or other proceedings were initiated by a third party, if such proceedings have not been dismissed within sixty (60) days following receipt of a written notice from the Non-Defaulting Party demanding such cure; or vi. Purchaser prevents Seller from installing the System or otherwise failing to perform in a way that prevents the delivery of electric energy from the System. Such Default Event shall not excuse Purchaser’s obligations to make payments that otherwise would have been due under this Agreement. b. Remedies. i. Remedies for Payment Default. If a Payment Default occurs, the Non-Defaulting Party may suspend performance of its obligations under this Agreement. Further, the Non-Defaulting Party may (A) at any time during the continuation of the Default Event, terminate this Agreement upon five (5) days prior written notice to the Defaulting Party, and (B) pursue any remedy under this Agreement, at law or in equity, including an action for damages. ii. Remedies for Other Defaults. On the occurrence of a Default Event other than a Payment Default, the Non-Defaulting Party may (A) at any time during the continuation of the Default Event, terminate this Agreement or suspend its performance of its obligations under this Agreement, upon five (5) days prior written notice to the Defaulting Party, and (B) pursue any remedy under this Agreement, at law or in equity, including an action for damages. Nothing herein shall limit either Party’s right to collect damages upon the occurrence of a breach or a default by the other Party that does not become a Default Event. iii. Damages Upon Termination by Default. Upon a termination of this Agreement by the Non- Defaulting Party as a result of a Default Event by the Defaulting Party, the Defaulting Party shall pay a Termination Payment to the Non-Defaulting Party determined as follows (the “Termination Payment”): A. Purchaser. If Purchaser is the Defaulting Party and Seller terminates this Agreement, the Termination Payment to Seller shall be equal to [for any given Contract Year, the amount set forth on Exhibit 3, Attachment A attached hereto] [the sum of (1) reasonable compensation, on a net after tax basis assuming a tax rate of thirty five percent (35%), for the loss or recapture of (a) the investment tax credit equal to thirty percent (30%) of the System value; (b) MACRS accelerated depreciation equal to eighty five percent (85%) of the System value, (c) loss of any Tax Credits that accrue or are otherwise assigned to Seller pursuant to the terms of this Agreement (Seller shall furnish Purchaser with a detailed calculation of such compensation if such a claim is made), (d) other financing and associated costs not included in (a), (b) and (c), (2) the net present value (using a discount rate of ([5%])) of the projected payments over the Term post-termination, had the Term

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remained effective for the full Initial Term, (3) removal costs as provided in Section 13(b)(iii)(C) and (4) any and all other amounts previously accrued under this Agreement and then owed by Purchaser to Seller.] [The Parties agree that actual damages to Seller in the event this Agreement terminates prior to the expiration of the Term as the result of a Default Event by Purchaser would be difficult to ascertain, and the applicable Termination Payment is a reasonable approximation of the damages suffered by Seller as a result of early termination of this Agreement.] The Termination Payment shall not be less than zero. B. Seller. If Seller is the Defaulting Party and Purchaser terminates this Agreement, the Termination Payment to Purchaser shall be equal to the sum of (1) the net present value (using a discount rate of ([5]%)) of the excess, if any, of the reasonably expected cost of electric energy from the Utility over the Contract Price for the reasonably expected production of the System for the remainder of the Initial Term or the then current Additional Term, as applicable; (2) all costs reasonably incurred by Purchaser in re-converting its electric supply to service from the Utility; (3) any removal costs incurred by Purchaser, and (4) any and all other amounts previously accrued under this Agreement and then owed by Seller to Purchaser. The Termination Payment shall not be less than zero2. C. Obligations Following Termination. If a Non-Defaulting Party terminates this Agreement pursuant to this Section 12(b), then following such termination, Seller shall, at the sole cost and expense of the Defaulting Party, remove the equipment (except for mounting pads and support structures) constituting the System. The Non-Defaulting Party shall take all commercially reasonable efforts to mitigate its damages as the result of a Default Event. 13. Representations, Warranties and Covenants. a. General Representations and Warranties. Each Party represents and warrants to the other the following as of the Effective Date: i. Such Party is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation; the execution, delivery and performance by such Party of this Agreement have been duly authorized by all necessary corporate, partnership or limited liability company action, as applicable, and do not and shall not violate any law; and this Agreement is valid obligation of such Party, enforceable against such Party in accordance with its terms (except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws now or hereafter in effect relating to creditors’ rights generally). ii. Such Party has obtained all licenses, authorizations, consents and approvals required by any Governmental Authority or other third party and necessary for such Party to own its assets, carry on its business and to execute and deliver this Agreement; and such Party is in compliance with all laws that relate to this Agreement in all material respects. b. Purchaser’s Representations, Warranties and Covenants. Purchaser represents and warrants to Seller the following as of the Effective Date and covenants that throughout the Term: i. License. Purchaser has title to or a leasehold or other property interest in the Premises. Purchaser has the full right, power and authority to grant the License contained in Section 8(a). Such grant of the License does not violate any law, ordinance, rule or other governmental restriction applicable to Purchaser or the Facility and is not inconsistent with and will not result in a breach or default under any agreement by which Purchaser is bound or that affects the Facility. If Purchaser does not own the Premises or Facility, Purchaser has obtained all required consents from the owner of the Premises and/or Facility to grant the License and enter into and perform its obligations under this Agreement. 2 If Purchaser is also taking the Environmental Attributes, the cost of replacement Environmental Attributes will also have to be taken into account.

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ii. Other Agreements. Neither the execution and delivery of this Agreement by Purchaser nor the performance by Purchaser of any of its obligations under this Agreement conflicts with or will result in a breach or default under any agreement or obligation to which Purchaser is a party or by which Purchaser or the Facility is bound. iii. Accuracy of Information. All information provided by Purchaser to Seller, as it pertains to the Facility’s physical configuration, Purchaser’s planned use of the Facility, and Purchaser’s estimated electricity requirements, is accurate in all material respects. iv. Purchaser Status. Purchaser is not a public utility or a public utility holding company and is not subject to regulation as a public utility or a public utility holding company. v. Hazardous Substances. There are no Hazardous Substances at, on, above, below or near the Premises. vi. No Pool Use. No electricity generated by the System will be used to heat a swimming pool. 14. System and Facility Damage and Insurance. a. System and Facility Damage. i. Seller’s Obligations. If the System is damaged or destroyed other than by Purchaser’s gross negligence or willful misconduct, Seller shall promptly repair and restore the System to its pre- existing condition; provided, however, that if more than fifty percent (50%) of the System is destroyed during the last five (5) years of the Initial Term or during any Additional Term, Seller shall not be required to restore the System, but may instead terminate this Agreement, unless Purchaser agrees (A) to pay for the cost of such restoration of the System or (B) to purchase the System “AS- IS” at the greater of (1) the Fair Market Value of the System and (2) [the sum of the amounts described in Section 12.b.iii.A)(1) and Section 12.b.iii.A)(3)] [for any given Contract Year, the amount set forth on Exhibit 3, Attachment A attached hereto]. ii. Purchaser’s Obligations. If the Facility is damaged or destroyed by casualty of any kind or any other occurrence other than Seller’s gross negligence or willful misconduct, such that the operation of the System and/or Purchaser’s ability to accept the electric energy produced by the System are materially impaired or prevented, Purchaser shall promptly repair and restore the Facility to its pre- existing condition; provided, however, that if more than 50% of the Facility is destroyed during the last five years of the Initial Term or during any Additional Term, Purchaser may elect either (A) to restore the Facility or (B) to pay the Termination Payment and all other costs previously accrued but unpaid under this Agreement and thereupon terminate this Agreement. b. Insurance Coverage. At all times during the Term, Seller and Purchaser shall maintain the following insurance: i. Seller’s Insurance. Seller shall maintain (A) property insurance on the System for the replacement cost thereof, (B) commercial general liability insurance with coverage of at least $1,000,000 per occurrence and $2,000,000 annual aggregate, (C) employer’s liability insurance with coverage of at least $1,000,000 and (iv) workers’ compensation insurance as required by law. ii. Purchaser’s Insurance. Purchaser shall maintain commercial general liability insurance with coverage of at least $1,000,000 dollars per occurrence and $2,000,000 dollars annual aggregate. c. Policy Provisions. All insurance policies provided hereunder shall (i) contain a provision whereby the insurer agrees to give the party not providing the insurance (A) not less than ten (10) days written notice before the insurance is cancelled, or terminated as a result of non-payment of premiums, or (B) not less than thirty (30) days written notice before the insurance is otherwise cancelled or terminated, (ii) be written on an occurrence basis, and (iii) be maintained with companies either rated no less than A-VII as to Policy Holder’s Rating in the current edition of A.M. Best’s Insurance Guide or otherwise reasonably acceptable to the other party.

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d. Certificates. Upon the other Party’s request each Party shall deliver the other Party certificates of insurance evidencing the above required coverage. A Party’s receipt, review or acceptance of such certificate shall in no way limit or relieve the other Party of the duties and responsibilities to maintain insurance as set forth in this Agreement. e. Deductibles. Unless and to the extent that a claim is covered by an indemnity set forth in this Agreement, each Party shall be responsible for the payment of its own deductibles. 15. Ownership; Option to Purchase. a. Ownership of System. Throughout the Term (except as otherwise permitted in Section 19), Seller shall be the legal and beneficial owner of the System at all times, including all Environmental Attributes (unless otherwise specified on Exhibit 1), and the System shall remain the personal property of Seller and shall not attach to or be deemed a part of, or fixture to, the Facility or the Premises. Each of the Seller and Purchaser agree that the Seller (or the designated assignee of Seller permitted under Section 19) is the tax owner of the System and all tax filings and reports will be filed in a manner consistent with this Agreement. The System shall at all times retain the legal status of personal property as defined under Article 9 of the Uniform Commercial Code. Purchaser covenants that it will use commercially reasonable efforts to place all parties having an interest in or a mortgage, pledge, lien, charge, security interest, encumbrance or other claim of any nature on the Facility or the Premises on notice of the ownership of the System and the legal status or classification of the System as personal property. If there is any mortgage or fixture filing against the Premises which could reasonably be construed as prospectively attaching to the System as a fixture of the Premises, Purchaser shall provide a disclaimer or release from such lienholder. If Purchaser is the fee owner of the Premises, Purchaser consents to the filing of a disclaimer of the System as a fixture of the Premises in the office where real estate records are customarily filed in the jurisdiction where the Facility is located. If Purchaser is not the fee owner, Purchaser will obtain such consent from such owner. Upon request, Purchaser agrees to deliver to Seller a non-disturbance agreement in a form reasonably acceptable to Seller from the owner of the Facility (if the Facility is leased by Purchaser), any mortgagee with a lien on the Premises, and other Persons holding a similar interest in the Premises. To the extent that Purchaser does not own the Premises or Facility, Purchaser shall provide to Seller immediate written notice of receipt of notice of eviction from the Premises or Facility or termination of Purchaser’s lease of the Premises and/or Facility. b. Option to Purchase. At the end of the initial Twenty-Year Term (20), and at the end of each Additional Term, so long as Purchaser is not in default under this Agreement, Purchaser may purchase the System from Seller on any such date for a purchase price of $1.00 (One Dollar) for the entire System. Purchaser must provide a notification to Seller of its intent to purchase at least ninety (90) days and not more than one hundred eighty (180) days prior to the end of the applicable Contract Year or the Initial Term or Additional Term, as applicable, and the purchase shall be complete prior to the end of the applicable Contract Year or the Initial Term or Additional Term, as applicable. Any such purchase shall be on an as-is, where-is basis, and Seller shall not provide any warranty or other guarantee regarding the performance of the System, provided, however, that Seller shall assign to Purchaser any manufacturers warranties that are in effect as of the purchase, and which are assignable pursuant to their terms. c. End of Term/Decommissioning: Should Purchaser not exercise the option to purchase the system at the purchase price contained in this Agreement at the end of the term, the Seller shall have the sole choice to remove the system. Should the Seller elect to remove the system, the Seller will restore the site back to reasonable conditions that are consistent with the current state of the property at the time of the removal. If the Seller selects to remove the system for failure of the Purchaser to buy the system, the Purchaser shall reimburse the Seller for all costs related to system removal and site remediation. 16. Indemnification and Limitations of Liability. a. General. Each Party (the “Indemnifying Party”) shall defend, indemnify and hold harmless the other Party and the directors, officers, shareholders, partners, members, agents and employees of such other Party, and the respective affiliates of each thereof (collectively, the “Indemnified Parties”), from and against all loss, damage, expense, liability and other claims, including court costs and reasonable attorneys’ fees (collectively, “Liabilities”) resulting from any third party actions relating to the breach of any representation or warranty set forth in Section 13 and from injury to or death of persons, and damage to or loss of property to the extent caused by or arising out of the negligent acts or omissions of, or the willful misconduct of, the Indemnifying Party (or its contractors, agents or employees) in connection with this Agreement; provided, however, that nothing herein shall require the Indemnifying Party to indemnify the Indemnified Party for any Liabilities to the extent caused by or arising out of the negligent acts or omissions of, or the willful misconduct of, the Indemnified Party. This Section 16(a) however, shall not apply to liability arising from

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any form of hazardous substances or other environmental contamination, such matters being addressed exclusively by Section 16(c). b. Notice and Participation in Third Party Claims. The Indemnified Party shall give the Indemnifying Party written notice with respect to any Liability asserted by a third party (a “Claim”), as soon as possible upon the receipt of information of any possible Claim or of the commencement of such Claim. The Indemnifying Party may assume the defense of any Claim, at its sole cost and expense, with counsel designated by the Indemnifying Party and reasonably satisfactory to the Indemnified Party. The Indemnified Party may, however, select separate counsel if both Parties are defendants in the Claim and such defense or other form of participation is not reasonably available to the Indemnifying Party. The Indemnifying Party shall pay the reasonable attorneys’ fees incurred by such separate counsel until such time as the need for separate counsel expires. The Indemnified Party may also, at the sole cost and expense of the Indemnifying Party, assume the defense of any Claim if the Indemnifying Party fails to assume the defense of the Claim within a reasonable time. Neither Party shall settle any Claim covered by this Section 16(b) unless it has obtained the prior written consent of the other Party, which consent shall not be unreasonably withheld or delayed. The Indemnifying Party shall have no liability under this Section 16(b) for any Claim for which such notice is not provided if that the failure to give notice prejudices the Indemnifying Party. c. Environmental Indemnification. Seller shall indemnify, defend and hold harmless all of Purchaser’s Indemnified Parties from and against all Liabilities arising out of or relating to the existence at, on, above, below or near the Premises of any Hazardous Substance (as defined in Section 16(c)(i)) to the extent deposited, spilled or otherwise caused by Seller or any of its contractors or agents. Purchaser shall indemnify, defend and hold harmless all of Seller’s Indemnified Parties from and against all Liabilities arising out of or relating to the existence at, on, above, below or near the Premises of any Hazardous Substance, except to the extent deposited, spilled or otherwise caused by Seller or any of its contractors or agents. Each Party shall promptly notify the other Party if it becomes aware of any Hazardous Substance on or about the Premises or the Premises generally or any deposit, spill or release of any Hazardous Substance.

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i. “Hazardous Substance” means any chemical, waste or other substance (A) which now or hereafter becomes defined as or included in the definition of “hazardous substances,” “hazardous wastes,” “hazardous materials,” “extremely hazardous wastes,” “restricted hazardous wastes,” “toxic substances,” “toxic pollutants,” “pollution,” “pollutants,” “regulated substances,” or words of similar import under any laws pertaining to the environment, health, safety or welfare, (B) which is declared to be hazardous, toxic, or polluting by any Governmental Authority, (C) exposure to which is now or hereafter prohibited, limited or regulated by any Governmental Authority, (D) the storage, use, handling, disposal or release of which is restricted or regulated by any Governmental Authority, or (E) for which remediation or cleanup is required by any Governmental Authority. d. Limitations on Liability. i. No Consequential Damages. Except with respect to indemnification for third party claims pursuant to this Section 17 and damages that result from the willful misconduct of a Party, neither Party nor its directors, officers, shareholders, partners, members, agents and employees subcontractors or suppliers shall be liable for any indirect, special, incidental, exemplary, or consequential loss or damage of any nature arising out of their performance or non-performance hereunder even if advised of such. The Parties agree that (1) in the event that Seller is required to recapture any Tax Credits or other tax benefits as a result of a breach of this Agreement by Purchaser, such recaptured amount shall be deemed to be direct and not indirect or consequential damages, and (ii) in the event that Seller is retaining the Environmental Attributes produced by the System, and a breach of this Agreement by Purchaser causes Seller to lose the benefit of sales of such Environmental Attributes to third parties, the amount of such lost sales shall be direct and not indirect or consequential damages. ii. Actual Damages. Except with respect to indemnification for third party claims pursuant to Section 26 and damages that result from the willful misconduct of Seller, Seller’s aggregate liability under this Agreement arising out of or in connection with the performance or non-performance of this Agreement shall not exceed the total payments made (or, as applicable, projected to be made) by Purchaser under this Agreement. The provisions of this Section (16)(d)(ii) shall apply whether such liability arises in contract, tort (including negligence), strict liability or otherwise. Any action against Seller must be brought within one (1) year after the cause of action accrues. 17. Force Majeure. a. “Force Majeure” means any event or circumstances beyond the reasonable control of and without the fault or negligence of the Party claiming Force Majeure. It shall include, without limitation, failure or interruption of the production, delivery or acceptance of electricity due to: an act of god; war (declared or undeclared); sabotage; riot; insurrection; civil unrest or disturbance; military or guerilla action; terrorism; economic sanction or embargo; civil strike, work stoppage, slow-down, or lock-out; explosion; fire; earthquake; abnormal weather condition or actions of the elements; hurricane; flood; lightning; wind; drought; the binding order of any Governmental Authority (provided that such order has been resisted in good faith by all reasonable legal means); the failure to act on the part of any Governmental Authority (provided that such action has been timely requested and diligently pursued); unavailability of electricity from the utility grid, equipment, supplies or products (but not to the extent that any such availability of any of the foregoing results from the failure of the Party claiming Force Majeure to have exercised reasonable diligence); and failure of equipment not utilized by or under the control of the Party claiming Force Majeure. b. Except as otherwise expressly provided to the contrary in this Agreement, if either Party is rendered wholly or partly unable to timely perform its obligations under this Agreement because of a Force Majeure event, that Party shall be excused from the performance affected by the Force Majeure event (but only to the extent so affected) and the time for performing such excused obligations shall be extended as reasonably necessary; provided, that: (i) the Party affected by such Force Majeure event, as soon as reasonably practicable after obtaining knowledge of the occurrence of the claimed Force Majeure event, gives the other Party prompt oral notice, followed by a written notice reasonably describing the event; (ii) the suspension of or extension of time for performance is of no greater scope and of no longer duration than is required by the Force Majeure event; and (iii) the Party affected by such Force Majeure event uses all reasonable efforts to mitigate or remedy its inability to perform as soon as reasonably possible. The Term shall be extended day for day for each day performance is suspended due to a Force Majeure event.

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c. Notwithstanding anything herein to the contrary, the obligation to make any payment due under this Agreement shall not be excused by a Force Majeure event that solely impacts Purchaser’s ability to make payment. d. If a Force Majeure event continues for a period of One Hundred Twenty (120) days or more within a twelve (12) month period and prevents a material part of the performance by a Party hereunder, then at any time during the continuation of the Force Majeure event, the Party not claiming the Force Majeure shall have the right to terminate this Agreement without fault or further liability to either Party (except for amounts accrued but unpaid). 18. Assignment and Financing. a. Assignment. This Agreement may not be assigned in whole or in part by either Party without the prior written consent of the other Party, which consent shall not be unreasonably withheld or delayed. Notwithstanding the foregoing, Seller may, without the prior written consent of Purchaser, (i) assign, mortgage, pledge or otherwise collaterally assign its interests in this Agreement and the System to any Financing Party, (ii) directly or indirectly assign this Agreement and the System to an affiliate or subsidiary of Seller, (iii) assign this Agreement and the System to any entity through which Seller is obtaining financing or capital for the System and (iv) assign this Agreement and the System to any person succeeding to all or substantially all of the assets of Seller (provided that Seller shall be released from liability hereunder as a result of any of the foregoing permitted assignments only upon assumption of Seller’s obligations hereunder by the assignee). In the event of any such assignment, the Seller shall be released from all its liabilities and other obligations under this Agreement. However, any assignment of Seller’s right and/or obligations under this Agreement, shall not result in any change to Purchaser’s rights and obligations under this Agreement. Purchaser’s consent to any other assignment shall not be unreasonably withheld if Purchaser has been provided with reasonable proof that the proposed assignee (x) has comparable experience in operating and maintaining photovoltaic solar systems comparable to the System and providing services comparable to those contemplated by this Agreement and (y) has the financial capability to maintain the System and provide the services contemplated by this Agreement in the manner required by this Agreement. This Agreement shall be binding on and inure to the benefit of the successors and permitted assignees. b. Financing. The Parties acknowledge that Seller may obtain construction and long-term financing or other credit support from one or more Financing Parties. “Financing Parties” means person or persons providing construction or permanent financing to Seller in connection with construction, ownership, operation and maintenance of the System, or if applicable, means, if applicable, any person to whom Seller has transferred the ownership interest in the System, subject to a leaseback of the System from such person. Both Parties agree in good faith to consider and to negotiate changes or additions to this Agreement that may be reasonably requested by the Financing Parties; provided, that such changes do not alter the fundamental economic terms of this Agreement. In connection with an assignment pursuant to Section 18(a)(i)-(iv), Purchaser agrees to execute any consent, estoppel or acknowledgement in form and substance reasonably acceptable to such Financing Parties. c. Successor Servicing. The Parties further acknowledge that in connection with any construction or long term financing or other credit support provided to Seller or its affiliates by Financing Parties, that such Financing Parties may require that Seller or its affiliates appoint a third party to act as backup or successor provider of operation and maintenance services with respect to the System and/or administrative services with respect to this Agreement (the “Successor Provider”). Purchaser agrees to accept performance from any Successor Provider so appointed so long as such Successor Provider performs in accordance with the terms of this Agreement. 19. Miscellaneous Provisions a. Choice of Law. The law of the state where the System is located shall govern this Agreement without giving effect to conflict of laws principles. b. Arbitration and Attorneys’ Fees. Any dispute arising from or relating to this Agreement shall be arbitrated. The arbitration shall be administered by JAMS in accordance with its Comprehensive Arbitration Rules and Procedures, and judgment on any award may be entered in any court of competent jurisdiction. If the Parties agree, a mediator may be consulted prior to arbitration. The prevailing party in any dispute arising out of this Agreement shall be entitled to reasonable attorneys’ fees and costs.

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c. Notices. All notices under this Agreement shall be in writing and shall be by personal delivery, facsimile transmission, electronic mail, overnight courier, or regular, certified, or registered mail, return receipt requested, and deemed received upon personal delivery, acknowledgment of receipt of electronic transmission, the promised delivery date after deposit with overnight courier, or five (5) days after deposit in the mail. Notices shall be sent to the person identified in this Agreement at the addresses set forth in this Agreement or such other address as either party may specify in writing. Each party shall deem a document faxed, emailed or electronically sent in PDF form to it as an original document. d. Survival. Provisions of this Agreement that should reasonably be considered to survive termination of this Agreement shall survive. For the avoidance of doubt, surviving provisions shall include, without limitation, Section 4 (Representations and Warranties), Section 7(h) (No Warranty), Section 14(b) (Insurance Coverage), Section 16 (Indemnification and Limits of Liability), Section Error! Reference source not found. (Confidentiality and Publicity), Section 19(a) (Choice of Law), Section 19 (b) (Arbitration and Attorneys’ Fees), Section 19(c) (Notices), Section 19 (g) (Comparative Negligence), Section 19(h) (Non- Dedication of Facilities), Section 19(j) (Service Contract), Section 19(k) (No Partnership) Section 19(l) (Full Agreement, Modification, Invalidity, Counterparts, Captions) and Section 19(n) (No Third Party Beneficiaries). e. Further Assurances. Each of the Parties hereto agree to provide such information, execute and deliver any instruments and documents and to take such other actions as may be necessary or reasonably requested by the other Party which are not inconsistent with the provisions of this Agreement and which do not involve the assumptions of obligations other than those provided for in this Agreement, to give full effect to this Agreement and to carry out the intent of this Agreement. f. Right of Waiver. Each Party, in its sole discretion, shall have the right to waive, defer or reduce any of the requirements to which the other Party is subject under this Agreement at any time (other than with respect to and/or relating to the obligation to make any payment due under this Agreement); provided, however that neither Party shall be deemed to have waived, deferred or reduced any such requirements unless such action is in writing and signed by the waiving Party. No waiver will be implied by any usage of trade, course of dealing or course of performance. A Party’s exercise of any rights hereunder shall apply only to such requirements and on such occasions as such Party may specify and shall in no event relieve the other Party of any requirements or other obligations not so specified. No failure of either Party to enforce any term of this Agreement will be deemed to be a waiver. No exercise of any right or remedy under this Agreement by Purchaser or Seller shall constitute a waiver of any other right or remedy contained or provided by law. Any delay or failure of a Party to exercise, or any partial exercise of, its rights and remedies under this Agreement shall not operate to limit or otherwise affect such rights or remedies. Any waiver of performance under this Agreement shall be limited to the specific performance waived and shall not, unless otherwise expressly stated in writing, constitute a continuous waiver or a waiver of future performance. g. Comparative Negligence. It is the intent of the Parties that where negligence is determined to have been joint, contributory or concurrent, each Party shall bear the proportionate cost of any Liability. h. Non-Dedication of Facilities. Nothing herein shall be construed as the dedication by either Party of its facilities or equipment to the public or any part thereof. Neither Party shall knowingly take any action that would subject the other Party, or other Party’s facilities or equipment, to the jurisdiction of any Governmental Authority as a public utility or similar entity. Neither Party shall assert in any proceeding before a court or regulatory body that the other Party is a public utility by virtue of such other Party’s performance under this agreement. If Seller is reasonably likely to become subject to regulation as a public utility, then the Parties shall use all reasonable efforts to restructure their relationship under this Agreement in a manner that preserves their relative economic interests while ensuring that Seller does not become subject to any such regulation. If the Parties are unable to agree upon such restructuring, Seller shall have the right to terminate this Agreement without further liability, and Seller shall remove the System in accordance with Section 11 of this Agreement. i. Estoppel. Either Party hereto, without charge, at any time and from time to time, within five (5) business days after receipt of a written request by the other party hereto, shall deliver a written instrument, duly executed, certifying to such requesting party, or any other person specified by such requesting Party: (i) that this Agreement is unmodified and in full force and effect, or if there has been any modification, that the same is in full force and effect as so modified, and identifying any such modification; (ii) whether or not to the knowledge of any such party there are then existing any offsets or defenses in favor of such party against enforcement of any of the terms, covenants and conditions of this Agreement and, if so, specifying

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the same and also whether or not to the knowledge of such party the other party has observed and performed all of the terms, covenants and conditions on its part to be observed and performed, and if not, specifying the same; and (iii) such other information as may be reasonably requested by the requesting Party. Any written instrument given hereunder may be relied upon by the recipient of such instrument, except to the extent the recipient has actual knowledge of facts contained in the certificate. j. Service Contract. The Parties intend this Agreement to be a “service contract” within the meaning of Section 7701(e)(3) of the Internal Revenue Code of 1986. Purchaser will not take the position on any tax return or in any other filings suggesting that it is anything other than a purchase of electricity from the System. k. No Partnership. No provision of this Agreement shall be construed or represented as creating a partnership, trust, joint venture, fiduciary or any similar relationship between the Parties. No Party is authorized to act on behalf of the other Party, and neither shall be considered the agent of the other. l. Full Agreement, Modification, Invalidity, Counterparts, Captions. This Agreement, together with any Exhibits, completely and exclusively states the agreement of the Parties regarding its subject matter and supersedes all prior proposals, agreements, or other communications between the Parties, oral or written, regarding its subject matter. This Agreement may be modified only by a writing signed by both Parties. If any provision of this Agreement is found unenforceable or invalid, such unenforceability or invalidity shall not render this Agreement unenforceable or invalid as a whole. In such event, such provision shall be changed and interpreted so as to best accomplish the objectives of such unenforceable or invalid provision within the limits of applicable law. This Agreement may be executed in any number of separate counterparts and each counterpart shall be considered an original and together shall comprise the same Agreement. The captions or headings in this Agreement are strictly for convenience and shall not be considered in interpreting this Agreement. m. Forward Contract. The transaction contemplated under this Agreement constitutes a “forward contract” within the meaning of the United States Bankruptcy Code, and the Parties further acknowledge and agree that each Party is a “forward contract merchant” within the meaning of the United States Bankruptcy Code. n. No Third Party Beneficiaries. Except for assignees, Financing Parties, and Successor Providers permitted under Section 19, this Agreement and all rights hereunder are intended for the sole benefit of the Parties hereto and shall not imply or create any rights on the part of, or obligations to, any other Person. o. Bonding. i. Performance bond liability. Any performance bond issued for a site or system will cease one (1) year from the completion of construction. If a warranty or guarantee is provided under the terms of this Agreement, the balance of any warranty or guarantee beyond one year term of the applicable performance bond shall continue to be guaranteed solely by Seller under the terms of this Agreement. The performance bond does not guarantee any property restorative requirements. ii. Payment bond liability. Any payment bond issued will cease at the termination of any time required by law. iii. Performance Guarantee. Neither payment bonds, whether for labor or materials, nor performance bonds are applicable to any specified performance guarantee.

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Exhibit 3 Attachment A Termination Payment Contract Year Termination Payment Amount 1 $4,627,600 2 $4,396,220 3 $4,176,409 4 $3,967,589 5 $3,769,209 6 $3,580,749 7 $2,864,599 8 $2,721,369 9 $2,585,301 10 $2,456,036 11 $2,333,234 12 $2,216,572 13 $2,105,744 14 $2,000,456 15 $1,900,433 16 $1,805,412 17 $1,715,414 18 $1,629,384 19 $1,547,915 20 $1,470,519 After Year 20 $1.00 End of Exhibit 3

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Exhibit 4 Form of Memorandum of License NOTICE OF GRANT OF INTEREST IN REALTY In accordance with the provisions of [ ], notice is hereby given of that Solar Power Purchase Agreement dated as of [ ] for purchase and sale of electrical energy (the “Solar Agreement”), such Solar Agreement includes the grant of License to Seller, pursuant to the terms of the Solar Agreement. This notice may be executed in counterparts by the Parties to the Solar Agreement. Parties to the Agreement: Seller: [ ] [ ] [ ] Purchaser : [ ] [ ] [ ] Date of Execution of Solar Agreement: [ ] Description of Premises: See Exhibit 4, Attachment A TERM OF AGREEMENT: The term of the Agreement shall be until the last day of the calendar month in which the twentieth (20th) anniversary of the Commercial Operation Date (as that term is defined in the Agreement) occurs, subject to any Additional Terms or early termination pursuant to the terms of the Agreement. [signature pages follow]

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Exhibit 4 Attachment A Description of the Premises
[Seller to Complete]

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IN WITNESS WHEREOF, this Agreement has been executed and delivered under seal on this day of , 20 . Seller: By: Print Name: Title: Purchaser: By: Print Name: Title: [FOR FORM PURPOSES ONLY – DO NOT EXECUTE]

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STATE OF ) ) SS. COUNTY OF ) On before me, , Notary Public, personally appeared , personally known to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of [ ] that the foregoing paragraph is true and correct. WITNESS my hand and official seal. [FOR FORM PURPOSES ONLY – DO NOT EXECUTE] End of Exhibit 4

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Exhibit 5 Easement Agreement4 This EASEMENT AGREEMENT (this “Agreement”) is made and entered into this day of , 20 (“Grantee”). (the “Effective Date”), by and between (“Grantor”),and Recitals A. Grantor is the owner of those certain parcels or tracts of ground located in , known as Lot , Block , and more particularly described by metes and bounds on Attachment A attached hereto and incorporated herein (all of which parcels or tracts of ground are referred to herein as the “Premises”). B. Grantor and Grantee entered into a certain Solar Power Purchase Agreement (the “Solar Agreement”) pursuant to which the Grantee has agreed to design, construct, install, operate, and maintain a certain solar photovoltaic system on the Premises (the “System”) for the purpose of providing electric energy to portions of the facilities or facility (the “Facility”) located on the Premises. C. Grantor desires to grant to Grantee the rights described herein for the purposes of designing, installing, operating, maintaining, and removing the System on and from the Property. Agreement NOW, THEREFORE, in consideration of the foregoing, the mutual covenants and agreements set forth below, and other good and valuable consideration, receipt and sufficiency of which is hereby acknowledged and confirmed by Grantor, Grantor and Grantee hereby agree as follows: 1. Grant of Easement. Grantor hereby grants and conveys unto Grantee, its successors and assigns, a non- exclusive easement for the period of time set forth herein, across, over, under and above the Facility in order to construct, install, alter, protect, repair, maintain, replace, operate, maintain and remove the System, including any related interconnection equipment and any facilities or equipment appurtenant thereto as Grantee may from time to time require. Grantor also hereby grants and conveys unto Grantee all other easements across, over, under and above the Property as reasonably necessary to provide access to and services reasonably required for Grantee’s performance under the Solar Agreement. The easements granted hereunder shall run with and burden the Property for the term of this Agreement. 2. Term. This Agreement shall be for a period commencing on the Effective Date and expiring on the date that is the earlier of (a) the thirtieth (30th) anniversary of the Effective Date, and (b): one hundred twenty (120) days following expiration of the term of the Solar Agreement, and (c) earlier termination of the Solar Agreement due to default by Grantee thereunder. No delay or interruption by Grantee in the use or enjoyment of any right or easement hereby granted shall result in the loss, limitation or abandonment of any of the right, title, interest, easement or estate granted hereby. 3. Obstructions. In addition to the rights afforded Grantee under the Solar Agreement, Grantee may from time to time remove structures, trees, bushes, or other obstructions within such portions of the Facility to the extent reasonably necessary to carry out the purposes set forth herein; provided that Grantor gives its prior written consent to such removal, such consent not to be unreasonably withheld, delayed or conditioned. Grantor covenants for itself, its heirs, successors and assigns that: a. Grantor will not build or place, or allow to be built or placed, any structure or obstruction of any kind within such portions of the Facility on which is located any portion of the System, including any related interconnection equipment; and b. if such a structure or obstruction is built or placed within any portion of the Facility on which is located any portion of the System, including any related interconnection equipment, Grantor will remove the same at the request of the Grantee at no cost to the Grantee. Grantee may erect a fence on such portions of the Property or the Facility on which any portion of the System, are located in order to 4 If Grantor and Purchaser are not the same Person, a three-party agreement will be necessary between the Purchaser, the Grantor and the Grantee.

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exclude Grantor and others from accessing such areas provided that Grantor gives its prior written consent, such consent not to be unreasonably withheld, delayed or conditioned. 4. Reservation of Rights. Grantor reserves the right to use or authorize others to use the Property and the Facility in any manner not inconsistent with or which will not unreasonably interfere with the rights granted herein, provided, however, that Grantor shall not, nor shall permit others to, disturb the System, including any related interconnection equipment, , in any way without prior written approval of the Grantee. 5. Title. Grantor represents and warrants to Grantee that (a) Grantor holds fee simple title to the Premises, free and clear of all liens and any other encumbrances, and (b) no lien or other encumbrance to which the Premises is subject would reasonably be expected to adversely impact Grantee’s rights hereunder or under the Solar Agreement. Grantor further represents and warrants to Grantee that Grantor has the right to execute and deliver this Agreement and to grant to Grantee the easements and other rights hereunder, and that such grant does not, and will not, violate or breach Grantor’s organizational documents, any law, rule or regulation, or any contract, agreement or arrangement to which Grantor is a party or by or to which any of Grantor’s assets or properties, including the Premises or the Facility, is bound or subject. In the event that, after the date of this Agreement, Grantor duly grants a mortgage for additional value (the “Subsequent Mortgage”), Grantor shall, prior to and as a condition to the effectiveness of such grant of a mortgage, cause the mortgagee under the Subsequent Mortgage to execute and deliver to the Grantee an agreement, in customary form and in form and substance reasonably acceptable to Grantee, acknowledging the subordination of the Subsequent Mortgage to the grant of the easement pursuant to this Agreement (the “Subordination Agreement”). 6. Recordation; Possession. This Agreement may be recorded against the Property by Grantee at Grantee’s sole cost and expense. Grantor covenants and agrees, for itself and its assigns and successors, that the Grantee shall be entitled to exercise its rights under this Agreement upon execution and delivery of this Agreement by the Parties hereto, whether or not this Agreement is recorded. 7. Governing Law. This Agreement shall be governed by, and interpreted and construed in accordance with, the laws of the State of California, without regard to conflicts of law principles. 8. Severability. All provisions of this Agreement are severable and the invalidity or unenforceability of any provision shall not affect or impair the validity or enforceability of the remaining provisions. 9. Binding Effect; Successors and Assigns. Grantee shall have the right to assign, apportion, or otherwise transfer any or all of its rights, benefits, privileges, and interests arising in this Agreement in accordance with the terms of the Solar Agreement. Without limiting the generality of the foregoing, the rights and obligations of the Parties shall inure to the benefit of and be binding upon their respective successors and assigns. This Agreement may be amended, modified or terminated only by written instrument, executed and acknowledged by the Parties hereto. 10. Headings. The headings used herein are for convenience only and are not to be used in interpreting this Agreement. 11. Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereto and supersedes any prior written or oral agreements with respect to the matters described herein. 12. Amendments; Acknowledgments. Grantor shall cooperate in amending this Agreement from time to time to include any provision that may be reasonably requested by Grantee’s lender, any assignee of rights under this Agreement, or the lender of any assignee hereunder. 13. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed the original, but which together shall constitute one and the same instrument. [signature pages follow]

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Exhibit 5 Attachment A Description of the Premises and Facility [Seller to create]

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IN WITNESS WHEREOF, this Easement Agreement has been executed and delivered under seal on this day of , 20 . GRANTOR: By: Print Name: Title: GRANTEE: By: Print Name: Title: [FOR FORM PURPOSES ONLY – DO NOT EXECUTE]

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STATE OF : ss. COUNTY OF : Be it Remembered, that on this day of , 20 , before me, a Notary Public in and for the State and County aforesaid, personally appeared , who acknowledged him/herself to be of , and that he/she as such , being authorized to do so, executed the foregoing instrument for the purposes therein contained. IN WITNESS WHEREOF, I have hereunto set my hand and official seal. Notary Public My Commission expires: [FOR FORM PURPOSES ONLY – DO NOT EXECUTE]

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STATE OF : ss. COUNTY OF : Be it Remembered, that on this day of , 20 , before me, a Notary Public in and for the State and County aforesaid, personally appeared , who acknowledged him/herself to be of , and that he/she as such , being authorized to do so, executed the foregoing instrument for the purposes therein contained. IN WITNESS WHEREOF, I have hereunto set my hand and official seal. Notary Public My Commission expires: [FOR FORM PURPOSES ONLY – DO NOT EXECUTE]`

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Revenue: Expenditure: 5207310 - 48003 | 48005 | 48007 | 48009 - WA212

Transfer In: Transfer Out:

M E M O R A N D U M

CITY OF CHINO

PUBLIC WORKS DEPARTMENT

COUNCIL MEETING DATE: MARCH 21, 2023

TO: LINDA REICH, CITY MANAGER

FROM: AMER JAKHER, PUBLIC WORKS DIRECTOR

SUBJECT: STATE WATER RESOURCES CONTROL BOARD - DRINKING WATER

STATE REVOLVIN G FUND REIMBURSEMENT AND PLEDGED REVENUES RESOLUTIONS - STATE STREET WATER TREATMENT PROJECT (WA212).

RECOMMENDATION
1) Adopt Resolution No. 2023 -018, authorizing the City’s identification and dedication of pledged revenues and funds for payment of Drink ing Water State Revolving Fund Financing; 2) adopt Resolution No. 2023-019, determining the City’s reimbursement intent and establishing a maximum project amount; and 3) authorize the City Manager to execute all necessary documents on behalf of the City.

FISCAL IMPACT
Adoption of Resolution 2023 -018 pledges City Water Usage Consumption, Water Availability Fee, and Water-Fire Service Fee funds for the payment of Drinking Water State Revolving Fund Financing. The repayment amount, term, and installment infor mation is to be determined only after submission of a completed Financial Security package and financing application. The City’s repayment obligation is contingent upon acceptance of the state’s potential funding offer, which will be brought back to City Council for approval.

CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES:

The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Responsible Long-Range Planning

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COUNCIL MEETING DATE: MARCH 21, 2023
SUBJECT: STATE WATER RESOURCES CONTROL BOARD - DRINKING WATER STATE

REVOLVING FUND REIMBURSEMENT AND PLEDGED REVENUES RESOLUTIONS - STATE STREET WATER TREATMENT PROJECT (WA212)
PAGE 2

BACKGROUND
On March 2, 2021, the City Council approved the creation of the State Street Water Treatment Project (WA212) an d awarded a design professional services agreement. The project includes the design and construction of a 4,000 -gallon-per-minute treatment facility, rehabilitation of Wells No. 12 and 14, and brine pipelines. The treatment facility at State Street and Ben son Avenue intersection will treat water from Wells No. 12 and 14 for nitrate, perchlorate, and 1,2,3 TCP. The project budget, including soft costs, is tentatively estimated to be approximately $37,000,000 Available funds for this project also include a $ 750,000 Water-SMART Federal.

This Capital Improvement Program project has been designated as a high priority by staff, and funding is consequently being actively pursued.

The Drinking Water State Revolving Fund (DWSRF) is a financial assistance program that helps water systems and states achieve health protection objectives through drinking water infrastructure programs. The DWSRF functions as an infrastructure bank by providing low - interest loans to eligible recipients for drinking water infrastructure pro jects. As money is paid back into the state’s revolving loan fund, the state makes new loans available to other recipients. These recycled repayments of loan principal and interest earnings allow the state's DWSRF to “revolve” over time. Publicly owned com munity water systems are eligible to apply for the loan, which has a term of up to 30 years and does not require repayment until 18 months after project completion.

The Public Works Department is seeking to secure low -interest loan funding through the DWSRF for project WA212. City staff have consulted with State Water Resources Control Board Financial staff and determined that the project is potentially eligible for DWSRF loan funding for the construction phase. Securing DWSRF loan funding would reduce the project’s immediate dependence on the City’s water capital fund, enabling other priority projects to utilize those funds. The project design is currently at 90% completion and is expected to be completed by July 2023. Additionally, the Initial Study requ ired to meet CEQA compliance was published for 30 days from July 15 th through August 15th. Comments have been received from AQMD, IEUA, and the City of Montclair. None of the comments were in opposition to the project, but merely typical requirements this type of project will need to incorporate in the construction documents.

On September 6, 2022, Council adopted Resolution No. 2022 -060 (attached as Exhibit 1), approving the application for DWSRF financing for Project WA212. The resolution, which also authorized the City Manager to submit necessary DWSRF Financing application documents on the City’s behalf, was the first of several resolutions required to be submitted to the California State Water Resources Control Board.

ISSUES/ANALYSIS
In order to receive DWSRF financing for a project, the California State Water Resources Control Board’s Division of Financial Assistance requires that the applying agency submit an application that outlines both the project’s financial needs and the agency’s ability to repay potential obligations. Public Works staff worked with the City’s Finance Department to complete the financial security package, which includes information pertaining to project costs, population served, City financial statements, budgets, tax information, debt management policies, and other information that will allow the Water Board to determine what level of financing the project is eligible to receive.

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COUNCIL MEETING DATE: MARCH 21, 2023
SUBJECT: STATE WATER RESOURCES CONTROL BOARD - DRINKING WATER STATE

REVOLVING FUND REIMBURSEMENT AND PLEDGED REVENUES RESOLUTIONS - STATE STREET WATER TREATMENT PROJECT (WA212)
PAGE 3

Certain requirements must be met in order to submit a full and complete financial assistance application, regardless of whether or not the City receives the financial assistance it is requesting. The application requires that separate resolutions be submitted, the first of which requires the potential loan applicant to pass a resolution by their governing body authorizing the approval and submission of a loan application. This was completed on September 6, 2022. The second resolution pledges particular City Water revenue funding to the future repayment of financing of project WA212. The third required reso lution determines the City’s reimbursement intent and establishes a maximum reasonable project amount that the potential financing agreement will not exceed. Per Resolution No. 2023 -018, the maximum reasonable project principal amount will not exceed $37,000,000.

Submission of a completed DWSRF package to the California State Water Resources Control Board will signify a substantial step towards making necessary preparations for the construction stage of Project WA212.

Therefore, staff recommends adopting R esolution 2023 -018, determining the City’s reimbursement intent, and establishing a maximum project amount; and Resolution 2023 -019, pledging particular City funding to DWSRF financing repayment.

Attachment: Exhibit 1: Resolution No. 2022-060
Resolution No. 2023-018
Resolution No. 2023-019

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RESOLUTION NO. 2022- 060

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO,

CALIFORNIA, APPROVING THE APPLICATION FOR DRINKING

WATER STATE REVOLVING FUND FINANCING AND AUTHORIZING

THE CITY MANAGER TO SUBMIT NECESSARY DOCUMENTS ON
BEHALF OF THE CITY.

WHEREAS, the Drinking Water State Revolving Fund ( DWSRF), administered by the State of California of Water Resources Control Board, provides financial assistance in the form of low- interest loans to finance water infrastructure improvements and other eligible projects— to maintain compliance with the Safe Drinking Water Act; and WHEREAS, the City of Chino has made planned water infrastructure improvements, as part of the State Street Water Treatment Project ( WA212), a priority and as a result is seeking financing sources for the project; and WHEREAS, the City of Chino City Council Is authorized to approve financing applications for the DWSRF Program, subject to the terms and conditions of the DWSRF Program Guidelines and Application Package.

NOW. THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHINO AS FOLLOWS:

1. That the application for the DWSRF, administered by the State of California of Water Resources Control Board, for the planned water infrastructure improvements, as part of the State Street Water Treatment Plant Project WA212) is hereby approved.

2. That the City Manager is authorized to execute and submit in the name of the City of Chino, the DWSRF financing application package and associated Documents for the State Street Water Treatment Project ( WA212), as required by the State of California Water Resources Control Board for participation in the DWSRF Program.

APPROVED AND ADOPTED THIS 6th DAY OF SEPTEMBER 2022.

By: JhullllTlY]. Mfm.

INICE M, ULLOA, MAYOR
ATTEST:
r
Bv" ^ ^
ANG^ ROBLES, CITY CLERK
EXHIBIT 1 12.23.a
State Water Resources Control Board - DWSRF
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Resolution No. 2022- 060

State of California )
County of San Bernardino )
CityofChino )
I, Angela Robles, City Clerk of the City of Chino, do hereby certify that the foregoing Resolution was duly adopted by the City Council at a regular meeting held on the 6'^ day of September 2022, following a roll call vote:

AYES: COUNCIL MEMBERS: ULLOA, LUCIO, COMSTOCK, FLORES, POCOCK NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
ang2lX ROBLES, CITYOFCHINO

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RESOLUTION NO. 2023-018

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CHINO, CALIFORNIA, IDENTIFYING AND DEDICATING

PLEDGED REVENUES AND FUNDS TO PAYMENT OF CLEAN

WATER STATE REVOLVING FUND FINANCING

WHEREAS, The City of Chino desires to finance the costs of planned water infrastructure improvements, as part of the State Street Water Treatment Project (WA212) for the purposes of construction of a 4,000 gallons per minute treatment facility, rehabilitation of Wells No. 12 and 14, and brine pipelines.

WHEREAS, the State Water Resources Control Board – Drinking Water State Revolving Fund requires each recipient to identify one or more dedicated sources of pledged revenue for repayment of Drinking Water State Revolving Fund loan;

NOW THEREFORE BE IT RESOLVED, the City of Chino (the “Entity”) hereby dedicates and pledges Water Fund: Water Usage Consumption, Water Availability Fee, and Water -Fire Service Fees to the payment of any and all Drinking Water State Revolving Fund and/or Water Recycling Funding Program financing for the State Street Water Treatment Project (WA212) (the “Project”). The Entity commits to collecting such revenues and maintaining such fund(s) throughout the term of such financing and until the Entity has satisfied its repayment obligation thereunder unless modification or change is approved in writing by the State Water Reso urces Control Board. So long as the financing agreement(s) are outstanding, the Entity’s pledge hereunder shall constitute a lien in favor of the State Water Resources Control Board on the foregoing fund(s) and revenue(s) without any further action necessa ry. So long as the financing agreements are outstanding, the Entity commits to maintaining the fund(s) and revenue(s) at levels sufficient to meet its obligations under the financing agreement(s).

APPROVED AND ADOPTED THIS 21st DAY OF MARCH 2023.

EUNICE ULLOA, MAYOR

ATTEST:

NATALIE GONZAGA, CITY CLERK

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RESOLUTION NO. 2023-018

State of California )
County of San Bernardino ) ss
City of Chino )

I, Natalie Gonzaga, City Clerk of the City of Chino, do hereby certify the foregoing Resolution was duly adopted by the Chino City Council at a regular meeting held on the 21st day of March, 2023, by the following votes:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

NATALIE GONZAGA, CITY CLERK

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RESOLUTION NO. 2023-019

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CHINO, CALIFORNIA, AUTHORIZING THE REIMBURSEMENT

OF FUNDS REQUESTED FROM THE STATE WATER

RESOURCES CONTROL BOARD UNDER THE CLEAN WATER

STATE REVOLVING FUND

WHEREAS, The City of Chino (the “Agency”) desires to finance the costs of constructing and/or reconstructing certain public facilities and improvement s relating to its water system, including certain treatment facilities, pipelines and other infrastructure (the “Project”); and

WHEREAS, the Agency intends to finance the construction and/or reconstruction of the Project or portions of the Project with moneys (“Project Funds”) provided by the State of California, acting by and through the State Water Resources Control Board (State Water Board); and

WHEREAS, the State Water Board may fund the Project Funds with proceeds from the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the “Obligations”), and

WHEREAS, prior to eith er the issuance of the Obligations or the approval by the State Water Board of the Project Funds , the Agency desires to incur certain capital expenditures (the “Expenditures”) with respect to the Project from available moneys of the Agency; and

WHEREAS, the Agency has determined that those moneys to be advanced on and after the date hereof to pay the Expenditures are available only for a temporary period and it is necessary to reimburse the Agency for Expenditures from the proceeds of the Obligations.

NOW, THEREFORE, THE AGENCY DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:

SECTION 1. The Agency hereby states its intention and reasonably expects to reimburse Expenditures paid prior to the issuance of the Obligations or the approval by the State Water Board of the Project Funds.

SECTION 2. The reasonably expected maximum principal amount of the Project Funds is $37,000,000.

SECTION 3. This resolution is being adopted no later than 60 days after the date on which the Agency will expend mon eys for the construction portion of the Project costs to be reimbursed with Project Funds.

SECTION 4. Each Agency expenditure will be of a type properly chargeable to a capital account under general federal income tax principles.

SECTION 5. To the best of our knowledge, this Agency is not aware of the previous adoption of official intents by the Agency that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued.

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RESOLUTION NO. 2023-019

SECTION 6. This resolution is adopted as official intent of the Agency in order to comply with Treasury Regulation §1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of Project costs.

SECTION 7. All the recitals in this resolution are true and correct and this Agency so finds, determines and represents.

NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Chino authorizes the reimbursement of funds requested from the State Water Resources Control Board under the Drinking Water State Revolving Fund (DWSRF).

APPROVED AND ADOPTED THIS 21st DAY OF March 2023.

EUNICE ULLOA, MAYOR

ATTEST:

NATALIE GONZAGA, CITY CLERK

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RESOLUTION NO. 2023-019

State of California )
County of San Bernardino ) ss
City of Chino )

I, Natalie Gonzaga, City Clerk of the City of Chino, do hereby certify the foregoing Resolution was duly adopted by the Chino City Council at a regular meeting held on the 21st day of March, 2023, by the following votes:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

NATALIE GONZAGA, CITY CLERK

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