Agenda packet — Chino City Council, November 18, 2025 (part 5 of 6)

Nothing in this Fiscal Agent Agreement or any Supplemental Fiscal Agent Agreement shall preclude, subject to the limitations contained hereunder, the redemption prior to maturity of any Bonds or Parity Bonds subject to call and redemption and payment of said Bonds or Parity Bonds from proceeds of refunding bonds issued under the Act as the same now exists or as hereafter amended, or under any other law of the State of California.

Section 2.4. Description of Bonds; Interest Rates. The Bonds shall be issued in fully registered form in denominations of $5,000 or any integral multiple thereof and shall be numbered as desired by the Underwriter.

The Bonds shall be designated “COMMUNITY FACILITIES DISTRICT NO. 2003-3 OF THE CITY OF CHINO IMPROVEMENT AREA NO. 11 2025 SPECIAL TAX BONDS.” The Bonds shall be dated as of their Delivery Date and shall mature and be payable on September 1 in the years and in the aggregate principal amounts and shall bear interest at the rates set forth in the table below payable on each Interest Payment Date:
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Maturity Date
(September 1) Principal Amount Interest Rate
$ %

T Term Bond.

Interest shall be payable on each Bond from the date established in accordance with Section 2.5 below on each Interest Payment Date until the principal sum of that Bond has been paid; provided, however, that if at the maturity date of any Bond (or if the same is redeemable and shall be duly called for redemption, then at the date fixed for redemption) funds are available for the payment or redemption thereof in full, in accordance with the terms of this Fiscal Agent Agreement , such Bonds and Parity Bonds shall then cease to bear interest. Interest due on the Bonds shall be calculated on the basis of a 360-day year comprised of twelve 30-day months.

Section 2.5. Place and Form of Payment. The Bonds and Parity Bonds shall be payable both as to principal and interest, and as to any premiums upon the redemption thereof, in lawful money of the United States of America. The principal of the Bonds and Parity Bonds and any premiums due upon the redemption thereof shall be payable upon presentation and surrender thereof at the Principal Office of the Fiscal Agent. Interest on any Bond shall be payable from the Interest Payment Date next preceding the date of authentication of that Bond, unless (i) such date of authentication is an Interest Payment Date in which event interest shall be payable from such date of authentication, (ii) the date of authentication is after a Record Date but prior to the immediately succeeding Interest Payment Date, in which event interest shall be payable from the Interest Payment Date immediately succ eeding the date of authentication, or (iii) the date of authentication is prior to the close of business on the first Record Date occurring after the issuance of such Bond, in which event interest shall be payable from the dated date of such Bond, provided , however, that if at the time of authentication of such Bond, interest is in default, interest on that Bond shall be payable from the last Interest Payment Date to which the interest has been paid or made available for payment or, if no interest has been paid or made available for payment on that Bond, interest on that Bond shall be payable from its dated date. Interest on any Bond shall be paid to the Person whose name shall appear in the Bond Register as the Owner of such Bond as of the close of busines s on the Record Date. Such interest shall be paid by check of the Fiscal Agent mailed by first class mail, postage prepaid, to such Bondowner at his or her address as it appears on the Bond Register. In addition, upon a request in writing received by the Fiscal Agent on or before the applicable Record Date from an Owner of $1,000,000 or more in principal amount of the Bonds or of any issue of Parity Bonds, payment shall be made on the Interest Payment Date by wire transfer in immediately available funds to an account designated by such Owner.

Section 2.6. Form of Bonds and Parity Bonds. The Bonds and the certificate of authentication shall be substantially in the form attached hereto as Exhibit A, which forms are hereby approved and adopted as the forms of such Bonds and of the certificate of authentication.

Notwithstanding any provision in this Fiscal Agent Agreement to the contrary, the District may, in its sole discretion, elect to issue the Bonds in book entry form. Each series of Parity Bonds and the 612

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certificate of authentication therefor shall be in the form provided in the Supplemental Fiscal Agent Agreement for such issue of Parity Bonds.

Section 2.7. Execution and Authentication. The Bonds and Parity Bonds shall be signed on behalf of the District by the manual or facsimile signature of the Mayor of the City and by the manual or facsimile signature of the City Clerk, or a ny duly appointed deputy City Clerk, in their capacity as officers of the District. In case any one or more of the officers who shall have signed or sealed any of the Bonds or Parity Bonds shall cease to be such officer before the Bonds or Parity Bonds so signed and sealed have been authenticated and delivered by the Fiscal Agent (including new Bonds or Parity Bonds delivered pursuant to the provisions hereof with reference to the transfer and exchange of Bonds or to lost, stolen, destroyed or mutilated Bo nds), such Bonds and Parity Bonds shall nevertheless be valid and may be authenticated and delivered as herein provided, and may be issued as if the person who signed or sealed such Bonds or Parity Bonds had not ceased to hold such office.

Only the Bonds b earing thereon such certificate of authentication in the form set forth in Exhibit A attached hereto shall be entitled to any right or benefit under this Fiscal Agent Agreement, and no Bond shall be valid or obligatory for any purpose until such certificat e of authentication shall have been duly executed by the Fiscal Agent.

Section 2.8. Bond Register. The Fiscal Agent will keep or cause to be kept, at the Principal Office of the Fiscal Agent, sufficient books for the registration and transfer of the Bonds and any Parity Bonds which shall upon reasonable prior notice be open to inspection by the District during all regular business hours, and, subject to the limitations set forth in Section 2.9 below, upon presentation for such purpose, the Fiscal Agent shall, under suc h reasonable regulations as it may prescribe, register or transfer or cause to be transferred on said Bond Register, Bonds and any Parity Bonds as herein provided.

The District and the Fiscal Agent may treat the Person whose name appears on the Bond Register as the absolute Owner of that Bond for any and all purposes, and the District and the Fiscal Agent shall not be affected by any notice to the contrary. The District and the Fiscal Agent may rely on the address of the Bondowner as it appears in the Bond Register for any and all purposes. It shall be the duty of the Bondowner to give written notice to the Fiscal Agent of any change in the Bondowner’s address so that the Bond Register may be revised accordingly.

Section 2.9. Registration of Exchange or Transfer. Subject to the limitations set forth in the following paragraph, the registration of any Bond may, in accordance with its terms, be transferred upon the Bond Register by the Person in whose name it is registered, in person or by his or her duly authorized attorney, upon surrender of such Bond for cancellation at the Principal Office of the Fiscal Agent, accompanied by delivery of written instrument of transfer in a form acceptable to the Fiscal Agent and duly executed by the Bondowner or his or her duly authorized attorney.

Bonds or Parity Bonds may be exchanged at the Principal Office of the Fiscal Agent for a like aggregate principal amount of Bonds or Parity Bonds of other authorized denominations of the same maturity and issue. The Fiscal Agent shall not co llect from the Owner any charge for any new Bond issued upon any exchange or transfer, but shall require the Bondowner requesting such exchange or transfer to pay any tax or other governmental charge required to be paid with respect to such exchange or transfer. Whenever any Bonds or Parity Bonds shall be surrendered for registration of transfer or exchange, the District shall execute and the Fiscal Agent shall authenticate and deliver a new Bond or Bonds or a new Parity Bond or Parity Bonds of the same is sue and maturity, for a like aggregate 613

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principal amount; provided that the Fiscal Agent shall not be required to register transfers or make exchanges of (i) Bonds or Parity Bonds for a period of 15 days next preceding any selection of the Bonds or Parity Bonds to be redeemed, or (ii) any Bonds chosen for redemption.

Prior to any transfer of the Bonds outside the book-entry system (including, but not limited to, the initial transfer outside the book-entry system) the transferor shall provide or cause to be p rovided to the Fiscal Agent all information necessary to allow the Fiscal Agent to comply with any applicable tax reporting obligations, including without limitation any cost basis reporting obligations under Code Section 6045, as amended. The Fiscal Agent shall conclusively rely on the information provided to it and shall have no responsibility to verify or ensure the accuracy of such information.

Section 2.10. Mutilated, Lost, Destroyed or Stolen Bonds or Parity Bonds. If any Bond or Parity Bond shall become mutilate d, the District shall execute, and the Fiscal Agent shall authenticate and deliver, a new Bond or Parity Bond of like tenor, date, issue and maturity in exchange and substitution for the Bond so mutilated, but only upon surrender to the Fiscal Agent of the Bond so mutilated. Every mutilated Bond so surrendered to the Fiscal Agent shall be cancelled by the Fiscal Agent pursuant to Section 10.1. If any Bond shall be lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to t he Fiscal Agent and, if such evidence is satisfactory to the Fiscal Agent and, if any indemnity satisfactory to the Fiscal Agent shall be given, the District shall execute and the Fiscal Agent shall authenticate and deliver, a new Bond of like tenor, matur ity and issue, numbered and dated as the Fiscal Agent shall determine in lieu of and in substitution for the Bond so lost, destroyed or stolen. Any Bond issued in lieu of any Bond alleged to be mutilated, lost, destroyed or stolen, shall be equally and pr oportionately entitled to the benefits hereof with all other Bonds and Parity Bonds issued hereunder. The Fiscal Agent shall not treat both the original Bond or Parity Bond and any replacement Bond or Parity Bond as being Outstanding for the purpose of determining the principal amount of Bonds or Parity Bonds which may be executed, authenticated and delivered hereunder or for the purpose of determining any percentage of Bonds or Parity Bonds Outstanding hereunder, but both the original and replacement Bond or Parity Bond shall be treated as one and the same. Notwithstanding any other provision of this Section, in lieu of delivering a new Bond or Parity Bond to replace a Bond which has been mutilated, lost, destroyed or stolen, and which has matured, the Fi scal Agent may make payment with respect to such Bond or Parity Bond upon receipt of indemnity satisfactory to the Fiscal Agent.

Section 2.11. Validity of Bonds. The validity of the authorization and issuance of the Bonds and any Parity Bonds shall not be affected in a ny way by any defect in any proceedings taken by the District for the financing of the Project, or by the invalidity, in whole or in part, of any contracts made by the District in connection therewith, and shall not be dependent upon the completion of the financing of the Project or upon the performance by any Person of his obligation with respect to the Project, and the recital contained in the Bonds or Parity Bonds or that the same are issued pursuant to the Act and other applicable laws of the State shall be conclusive evidence of their validity and of the regularity of their issuance.

Section 2.12. Book-Entry System. The Bonds shall be initially delivered in the form of a separate single fully registered Bond (which may be typewritten) for each maturity. Upon initia l delivery, the ownership of each such Bond shall be registered in the Bond Register in the name of the Nominee as nominee of the Depository. Except as provided in Section 2.14, all of the Outstanding Bonds shall be registered in the Bond Register in the name of the Nominee. At the election of the District, any Parity Bonds may also be issued as book entry bonds registered in the name of the 614

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Nominee as provided herein, in which case the references in Sections 2.12 through 2.15 to “Bonds” shall be applicable to such Parity Bonds.

With respect to Bonds registered in the Bond Register in the name of the Nominee, the District and the Fiscal Agent shall have no responsibility or obligation to any Participant or to any Person on behalf of which such Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence, the District and the Fiscal Agent shall have no responsibility or obligation with respect to (i) the accuracy of the records of the Depository, the Nominee, or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other Person, other than an Owner as shown in the Bond Register, of any notice with respect to the Bonds, including any notice of redemption, (iii) the selection by the Depository and its Participants of the beneficial interests in the Bonds to be redeemed in the event the Bonds are redeemed in part, or (iv) the payment to any Participant or any other Person, other than an Owner as shown in the Bond Regist er, of any amount with respect to principal of, premium, if any, or interest due with respect to the Bonds. The District and the Fiscal Agent may treat and consider the Person in whose name each Bond is registered in the Bond Register as the holder and ab solute owner of such Bond for the purpose of payment of the principal of, premium, if any, and interest on such Bond, for the purpose of giving notices of redemption and other matters with respect to such Bond, for the purpose of registering transfers with respect to such Bond, and for all other purposes whatsoever. The Fiscal Agent shall pay all principal of, premium, if any, and interest due on the Bonds only to or upon the order of the respective Owner, as shown in the Bond Register, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to satisfy and discharge fully the District’s obligations with respect to payment of the principal, premium, if any, and interest due on the Bonds to the extent of the sum or sums so paid. No Person other than an Owner, as shown in the Bond Register, shall receive a Bond evidencing the obligation of the District to make payments of principal, premium, if any, and interest pursuant to this Fiscal Agent Agreement. Upon delivery by the Depository to the Fiscal Agent and the District of written notice to the effect that the Depository has determined to substitute a new nominee in place of the Nominee, and subject to the provisions herein with respect to Record Dates, the word Nominee in this Fiscal Agent Agreement shall refer to such new nominee of the Depository.

Section 2.13. Representation Letter. In order to qualify the Bonds and any Parity Bonds which the District elects to register in the name of the Nominee for the Depository’s book-entry system, an authorized representative of the District is hereby authorized to execute from time to time and deliver to such Depository the Representation Letter. The execution and delivery of the Representation Letter shall not in any way limit the provisions of Section 5.1 or in any other way impose upon the District or the Fiscal Agent any obligation whatsoever with respect to persons having interests in the Bonds other than the Owners, as shown in the Bond Register. The District agrees to take all action reasonably necessary to continuously comply with all representations made by it in the Representation Letter. In addition to the execution and delivery of the Representation Letter, the Mayor of the City of Chino and the Authorized Representatives of the City are hereby authorized to take any other actions, not inconsistent with this Fiscal Agent Agreement , to qualify the Bonds for the Depository’s book - entry program.

Section 2.14. Transfers Outside Book -Entry System. In the event (i) the Depository determines not to continue to act as securities depository for the Bonds, or (ii) the District determines that the Depository shall no longer so act, then the District will discontinue the book-entry system with the Depository. If the District fails to identify another qualified securities depository to replace the Depository then the Bonds so designated shall no longer be restricted to being registered in the Bond Register in the name of the Nominee, but shall be register ed in whatever name or names Persons 615

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transferring or exchanging Bonds shall designate, in accordance with the provisions of Section 2.9 hereof.

Section 2.15. Payments to the Nominee. Notwithstanding any other provisions of this Fiscal Agent Agreement to the contrary, so long as any Bond is registered in the name of the Nominee, all payments with respect to principal, premium, if any, and interest due with respect to such Bond and all notices with respect to such Bond shall be made and given, respectively, as provided in the Representation Letter or as otherwise instructed by the Depository.

Section 2.16. Initial Depository and Nominee. The initial Depository under this Article shall be The Depository Trust Company, New York, New York. The initial Nominee shall be Cede & Co., as Nominee of The Depository Trust Company, New York, New York.

Section 2.17. Conditions for the Issuance of Parity Bonds. The District may at any time after the issuance and delivery of the Bonds hereunder issue Parity Bonds payable from the Net Special Taxes and other amoun ts deposited in the Special Tax Fund and secured by a lien and charge upon such amounts equal to the lien and charge securing the Outstanding Bonds and any other Parity Bonds theretofore issued hereunder or under any Supplemental Fiscal Agent Agreement; however, that Parity Bonds, may only be issued for the purposes of refunding all or a portion of the Bonds or Parity Bonds then Outstanding subject to the following specific conditions, which are made conditions precedent to the issuance of any such Parity Bonds:
(a) As certified by the District, the District shall be in compliance with all covenants set forth in this Fiscal Agent Agreement and any Supplemental Fiscal Agent Agreement then in effect and a certificate of the District to that effect shall have been filed with the Fiscal Agent; provided, however, that Parity Bonds may be issued notwithstanding that the District is not in compliance with all such covenants so long as immediately following the issuance of such Parity Bonds the District will be in compliance with all such covenants. (b) The issuance of such Parity Bonds shall have been duly authorized pursuant to the Act and all applicable laws, and the issuance of such Parity Bonds shall have been provided for by a Supplemental Fiscal Agent Agreement duly adopted by the District which shall specify the following:
(i) the purpose for which such Parity Bonds are to be issued and the fund or funds into which the proceeds thereof are to be deposited; (ii) the authorized principal amount of such Parity Bonds; (iii) the date, the interest payment dates, and the maturity date or dates of such Parity Bonds; provided that (i) each interest payment date shall fall on a March 1 or September 1 and (ii) each maturity date shall fall on a September 1; (iv) the description of the Parity Bonds , the place of payment thereof and the procedure for execution and authentication;
(v) the denominations and method of numbering of such Parity Bonds; (vi) the amount and due date of each mandatory Sinking Fund Payment, if any, for such Parity Bonds;
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(vii) the amount, if any, to be deposited from the proceeds of such Parity Bonds in the Reserve Account of the Special Tax Fund to increase the amount therein to the Reserve Requirement, provided that if the interest on such Parity Bonds is intended by the District to be excluded from the gross income of the recipients thereof for federal income tax purposes, such amount shall not exceed the maximum amount of proceeds that, in the opinion of Bond Counsel, can be so deposited without causing the interest on such Parity Bonds to be included in the gross income of the recipients thereof for federal income tax;
(viii) the form of such Parity Bonds; and
(ix) such other provisions as are necessary or appropriate and not inconsistent with this Fiscal Agent Agreement.
(c) The Fiscal Agent shall have r eceived the following documents, all dated or certified, as the case may be, as of the date of delivery of such Parity Bonds:
(i) a certified copy of the Supplemental Fiscal Agent Agreement authorizing the issuance of such Parity Bonds;
(ii) a written request of the District as to the delivery of such Parity Bonds; (iii) an opinion of Bond Counsel and/or general counsel to the District to the effect that (i) the District has the right and power under the Act to adopt the Supplemental Fiscal Agent Agreement relating to suc h Parity Bonds, and the Supplemental Fiscal Agent Agreement has been duly and lawfully adopted by the District, is in full force and effect and is valid and binding upon the District and enforceable in accordance with its terms (subject to the usual and cu stomary exceptions); (ii) the Fiscal Agent Agreement creates the valid pledge which it purports to create of the Net Special Taxes and other amounts as provided in the Fiscal Agent Agreement , subject to the application thereof to the purposes and on the co nditions permitted by the Fiscal Agent Agreement; and (iii) such Parity Bonds are valid and binding limited obligations of the District, enforceable in accordance with their terms (subject to the usual and customary exceptions) and the terms of the Fiscal Agent Agreement and all Supplemental Fiscal Agent Agreement s thereto and are entitled to the benefits of the Fiscal Agent Agreement and all such Supplemental Fiscal Agent Agreements, and such Parity Bonds have been duly and validly authorized and issued in accordance with the Act (or other applicable laws) and the Fiscal Agent Agreement and all such Supplemental Fiscal Agent Agreements; and a further opinion of Bond Counsel to the effect that, assuming compliance by the District with certain tax covenants, the issuance of the Parity Bonds will not adversely affect the exclusion from gross income for federal income tax purposes of interest on the Bonds and any Parity Bonds theretofore issued on a tax exempt basis, or the exemption from State of California per sonal income taxation of interest on any Outstanding Bonds and Parity Bonds theretofore issued; (iv) a certificate of the District stating that the requirements in this Section 2.17 for the issuance of Parity Bonds have been complied with and satisfied; (v) A certificate from an Independent Financial Consultant to the effect that Annual Debt Service in each Bond Year after the issuance of such Parity Bonds will be less than Annual Debt Service would have been prior to the issuance of such Parity Bonds in each Bond Year in which such Parity Bonds will remain Outstanding; and 617

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(vi) such further documents, money and securities as are required by the provisions of this Fiscal Agent Agreement and the Supplemental Fiscal Agent Agreement providing for the issuance of such Parity Bonds.

ARTICLE III

CREATION OF FUNDS; APPLICATION OF PROCEEDS; AND SPECIAL TAXES Section 3.1. Creation of Funds and Application of Proceeds. (a) There are hereby created and established and shall be maintained by the Fiscal Agent the following funds and accounts:
(1) The Community Facilities District No. 2003-3 Improvement Area No. 11 Special Tax Fund (the “Special Tax Fund”), in which there shall be established and created an Interest Account, a Principal Account, a Redemption Account and a Reserve Account; (2) The Community Facilities District No. 2003-3 Improvement Area No. 11 Rebate Fund (the “Rebate Fund”), in which there shall be established a Rebate Account; (3) The Community Facilities District No. 2003-3 Improvement Area No. 11 Improvement Fund (the “Improvement Fund”), in which the re shall be established the Costs of Issuance Account and the Facilities Account;
(4) The Community Facilities District No. 2003-3 Improvement Area No. 11 Administrative Expense Fund (the “Administrative Expense Fund”); and (5) The Community Facilities District No. 2003-3 Improvement Area No. 11 Surplus Taxes Fund (the “Surplus Taxes Fund”).

The amount on deposit in the foregoing funds and accounts shall be held by the Fiscal Agent, and the Fiscal Agent shall invest and disburse such amounts in accordance with the provisions of this Article III.

In connection with the issuance of any Parity Bonds, which may be issued only for the purpose of refunding the Bonds as described in Section 2.17, the Fiscal Agent, at the direction of an Authorized Representative of the District, may create new funds, accounts or subaccounts, or may create additional accounts and subaccounts within any of the foregoing funds and accounts for the purpose of separately accounting for the proceeds of the Bonds and any Parity Bonds. (b) The proceeds of the sale of the Bonds shall be received by the Fiscal Agent and deposited as follows:
(1) $________________ shall be deposit ed in the Costs of Issuance Account of the Improvement Fund;
(2) $_______________ shall be deposited in the Reserve Account of the Special Tax Fund;
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(3) $_______________ shall be deposited in the Facilities Account of the Improvement Fund; and
(4) [$______________ shall be deposited in the Interest Account of the Special Tax Fund to pay interest on the Bonds due on March 1, 2026.] The Fiscal Agent may, in its discretion, establish a temporary fund or account in its books and records to facilitate such transfers. The amounts on deposit in the foregoing funds and accounts shall be held by the Fiscal Agent and the Fiscal Agent shall invest and disburse the amounts in such funds and accounts in accordance with the provisions of this Article III and shall disburse investment earnings thereon in accordance with the provisions of Section 3.10 hereof.

Section 3.2. Special Taxes and Deposits to and Disbursements from Special Tax Fund.

The Fiscal Agent shall hold in trust, for the benefit of the Owners, all Special Taxes received by it and shall apply them as set forth herein; and, pending such application, such Special Taxes shall be pledged to, and shall be subje ct to a lien in favor of the Owners. Except for Prepayments which shall be deposited to the Redemption Account as specified in a Certificate of an Authorized Representative, the Fiscal Agent shall, on each date on which the Special Taxes are received from the District, deposit the Special Taxes in the Special Tax Fund to be held in trust for the Owners. The Fiscal Agent shall transfer the Special Taxes on deposit in the Special Tax Fund on the dates and in the amounts set forth in the following Sections, in the following order of priority, to:
(a) the Administrative Expense Fund in accordance with Section 3.3 herein; (b) the Interest Account of the Special Tax Fund in the amount necessary to cause the balance on deposit therein to equal the interest coming due on the Bonds and any Parity Bonds on the next succeeding Interest Payment Date;
(c) the Principal Account of the Special Tax Fund in the amount necessary to cause the balance on deposit therein to be equal to the principal amount of the Bonds and any Parity Bonds, and/or the Sinking Fund Payment payable on the next succeeding September 1; (d) the Reserve Account of the Special Tax Fund in the amount, if any, necessary to cause the balance on deposit in the Reserve Account to equal the Reserve Requirement; (e) the Rebate Fund in the amounts required to be deposited therein pursuant to Section 3.7; and
(f) the Surplus Taxes Fund any amount remaining after all of the foregoing deposits and transfers have been completed.

At maturity of all of the Bonds and Parity Bonds and after all principal and interest then due on the Bonds and Parity Bonds then Outstanding has been paid or provided for, Special Taxes held by the District and moneys in the Special Tax Fund and any accounts therein may be used by the District for any lawful purpose.

Section 3.3. Administrative Expense Fund. The Fiscal Agent shall transfer from the Special Tax Fund and deposit in the Administrative Expense Fund from time to time amounts necessary to make timely payment of Administrative Expenses as set forth in a Certificate of an Authorized 619

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Representative. Moneys in the Administrative Expense Fund may be invested in any Authorized Investments as directed in writing by an Authorized Representative of the District and shall be disbursed as directed in a Certificate of an Authorized Representative.

Section 3.4. Interest Account and Principal Account of the Special Tax Fund. The scheduled principal or Sinking Fund Payments of, and interest on, the Bonds and any Parity Bonds shall be paid by the Fiscal Agent from amounts transferred to the In terest Account and the Principal Account of the Special Tax Fund. For the purpose of assuring that the payment of principal or Sinking Fund Payment of, and interest on, the Bonds and any Parity Bonds will be made when due, after the deposit is made as req uired by Section 3.3, at least one Business Day prior to each Interest Payment Date, the Fiscal Agent shall make the following transfers first to the Interest Account and then to the Principal Account; provided, however, that to the extent that deposits ha ve been made in the Interest Account or the Principal Account from the proceeds of the sale of the Bonds or Parity Bonds, or otherwise, or to the extent that a transfer will be made from the Reserve Account to the Interest Account in accordance with the last paragraph of Section 3.6, the transfer from the Special Tax Fund shall not be made:
(a) To the Interest Account, an amount such that the balance in the Interest Account one (1) Business Day prior to each Interest Payment Date shall be equal to the installment of interest due on the Bonds and any Parity Bonds on said Interest Payment Date. Moneys in the Interest Account shall be used for the payment of interest on the Bonds and any Parity Bonds as the same become due.
(b) To the Principal Account, an amount such that the balance in the Principal Account one (1) Business Day prior to September 1 of each year, shall equal the principal payment and Sinking Fund Payment of the Bonds and any Parity Bonds due on such September 1. Moneys in the Principal Account shall be used for the payment of the principal and Sinking Fund Payment of the Bonds and any Parity Bonds as the same become due.

Section 3.5. Redemption Account of the Special Tax Fund. (a) After making the transfers and deposits required by Sections 3.3 and 3.4 above, and in accordance with the District’s election to call Bonds for optional redemption as set forth in Section 4.1(a), or to call Parity Bonds for optional redemption as set forth in any Supplemental Fiscal Agent Agreement for Parity Bonds, the Fiscal Agent shall transfer from the Special Tax Fund and deposit in the Redemption Account moneys available for the purpose and sufficient to pay the principal of and the interest and premiums, if any, payable on the Bonds or Parity Bonds called for optional redemption; provided, however, that amounts in the Special Tax Fund may be applied to optionally redeem Bonds or Parity Bonds only if immediately following such redemption the amount in the Reserve Account will equal the Reserve Requirement, as determined by the District. (b) Prepayments deposited to the Redemption Account shall be applied on the redemption date established pursuant to Section 4.1(c) for the use of such Prepayments to the payment of the principal of, premium, and interest on the Bonds and any Parity Bonds to be redeemed with such Prepayments.
(c) Moneys set aside in the Redemption Account shall be used solely for the purpose of redeeming Bonds and Parity Bonds and shall be applied on or after the redemption date to the payment of principal of and interest and premium, if any, on the Bonds or Parity Bonds to be 620

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redeemed upon presentation and surrender of such Bonds or Parity Bonds; provided, however, that in lieu or partially in li eu of such call and redemption, moneys deposited in the Redemption Account, other than Prepayments (which shall be used to redeem Bonds and Parity Bonds on the redemption date established pursuant to Section 4.1(c)), may be used to purchase Outstanding Bon ds or Parity Bonds in the manner hereinafter provided. Purchases of Outstanding Bonds or Parity Bonds may be made by the District at public or private sale as and when and at such prices as the District may in its discretion determine but only at prices (including brokerage or other expenses) not more than par plus accrued interest, plus, in the case of moneys set aside for an optional redemption, the premium applicable at the next following call date according to the premium schedule established pursuant to Section 4.1(a), or in the case of Parity Bonds the premium schedule established in any Supplemental Fiscal Agent Agreement. Any accrued interest payable upon the purchase of Bonds may be paid from the amount reserved in the Special Tax Fund for the payment of interest on the next following Interest Payment Date.

Section 3.6. Reserve Account of the Special Tax Fund. Amounts in the Reserve Account shall be applied as follows:
(a) Moneys in the Reserve Account shall be used solely for the purpose of paying the principal o f, including Sinking Fund Payments, and interest on the Bonds and any Parity Bonds when due in the event that the balance on deposit in the Interest Account or the Principal Account, as the case may be, is insufficient for such purpose and for the purpose of making any required transfer to the Rebate Fund pursuant to Section 3.7 upon written direction from the District or any required transfer to the Redemption Account as described below. If the amounts in the Interest Account or Principal Account, as the case may be, are insufficient to pay the principal of, including Sinking Fund Payments, or interest on the Bonds and Parity Bonds when due, or amounts in the Special Tax Fund are insufficient to make transfers to the Rebate Fund when required, the Fiscal A gent shall withdraw from the Reserve Account for deposit in the Interest Account or the Principal Account, as the case may be, or the Rebate Fund, as applicable, moneys necessary for such purposes. (b) Whenever moneys are withdrawn from the Reserve Account, after making the required transfers referred to in Sections 3.4 and 3.5 above, the Fiscal Agent shall transfer to the Reserve Account from available moneys in the Special Tax Fund, or from any other legally available funds which the District elects to apply to such purpose, the amount needed to restore the amount of the Reserve Account to the Reserve Requirement. If amounts in the Special Tax Fund together with any other amounts transferred to replenish the Reserve Account are inadequate to restore the Reser ve Account to the Reserve Requirement, then the District shall include the amount necessary to fully restore the Reserve Account to the Reserve Requirement in the next annual Special Tax levy subject to the maximum Special Taxes which may be levied.
(c) In connection with a redemption of Bonds pursuant to Section 4.1(a) or (c) or Parity Bonds in accordance with this Fiscal Agent Agreement or any Supplemental Fiscal Agent Agreement or a partial defeasance of Bonds or Parity Bonds in accordance with Section 9.1 hereof, amounts in the Reserve Account may be applied to such redemption or partial defeasance if so provided in a Certificate of an Authorized Representative, so long as the amount on deposit in the Reserve Account following such optional redemption or par tial defeasance equals the Reserve Requirement following such optional redemption or partial defeasance. (d) To the extent that the amount on deposit in the Reserve Account as of the first day of the final Bond Year for the Bonds or an issue of Parity Bonds eq uals or exceeds Annual Debt 621

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Service for that Bond Year, amounts in the Reserve Account may be applied to pay the principal of and interest due on the Bonds and Parity Bonds, as applicable, in the final Bond Year for such issue, if so provided in a Certificate of an Authorized Representative. (e) The Fiscal Agent shall withdraw from the Reserve Account moneys in excess of the Reserve Requirement not transferred in accordance with the preceding provisions of this Section one Business Day before each March 1 and September 1, and transfer such moneys to the Interest Account of the Special Tax Fund, unless prior to such date the Fiscal Agent is directed in a Certificate of an Authorized Representative to transfer such moneys to a different fund or account specified in such certificate.

Section 3.7. Rebate Fund.
(a) All money at any time deposited in the Rebate Account of the Rebate Fund shall be held by the Fiscal Agent in trust, for payment to the United States Treasury. All amounts on deposit in the Rebate Fund with respect to the Bonds or an issue of Parity Bonds shall be governed by this Section and the Tax Certificate, unless the District delivers to the Fiscal Agent an opinion of Bond Counsel that the exclusion from gross income for federal income tax purposes of interest payments on the Bonds and Parity Bonds will not be adversely affected if such requirements are not satisfied. The Fiscal Agent shall not be responsible for calculating rebatable arbitrage or for the adequacy or correctness or any rebate report or rebate calculations. The Fiscal Agent shall be deemed conclusively to have complied with the Tax Certificate and the provisions of this Fiscal Agent Agreement regarding calculation and payment of the rebatable arbitrage if the Fiscal Agent follows the directions of t he District and the Fiscal Agent shall have no independent duty to review such calculations or enforce the compliance with such rebate requirements.
(1) Rebate Account. The following requirements shall be satisfied with respect to each subaccount of the Rebate Account:
(i) Annual Computation. Within 55 days of the end of each Bond Year, the District shall calculate or cause to be calculated the amount of rebatable arbitrage for the Bonds and each issue of Parity Bonds in accordance with Section 148(f)(2) of the Code and Section 1.148-3 of the Rebate Regulations (taking into account any applicable exceptions with respect to the computation of the rebatable arbitrage described in the Tax Certificate for each issue (e.g., the temporary investments exceptions of Section 148(f)(4)(B) and (C) of the Code), and taking into account whether the election pursuant to Section 148(f)(4)(C)(vii) of the Code (the “1½% Penalty”) has been made), for this purpose treating the last day of the applicable Bond Year as a computatio n date, within the meaning of Section 1.148-1(b) of the Rebate Regulations (the “Rebatable Arbitrage”).

The District shall obtain expert advice as to the amount of the Rebatable Arbitrage to comply with this Section.
(ii) Annual Transfer. Within 55 days of the end of each Bond Year for which Rebatable Arbitrage must be calculated as required by the Tax Certificate the District shall transfer to the Fiscal Agent an amount to be deposited in the Rebate Account if and to the extent required, so that the balance in the Rebate Account shall equal the amount of Rebatable Arbitrage so calculated by or on behalf of the District in accordance with (i) of this Subsection (a)(1) with respect to the Bonds and each issue of Parity Bonds to which this Section is applica ble. In the event that immediately following any transfer required by the previous sentence, or the date on which the District determines that no transfer is required for such Bond Year, the amount then on deposit in the Rebate 622

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Account exceeds the amount required to be on deposit therein, the Fiscal Agent shall withdraw the excess from the Rebate Account and then credit the excess to the Administrative Expense Fund. (iii) Payment to the Treasury . The District shall direct the Fiscal Agent to pay to the United States Treasury out of amounts in the Rebate Account, (X) Not later than 60 days after the end of (A) the fifth Bond Year for the Bonds and each issue of Parity Bonds to which this Section is applicable, and (B) each applicable fifth Bond Year thereaf ter, an amount equal to at least 90% of the Rebatable Arbitrage calculated as of the end of such Bond Year for the Bonds and each issue of Parity Bonds; and
(Y) Not later than 60 days after the payment or redemption of all of the Bonds or an issue of Parit y Bonds, an amount equal to 100% of the Rebatable Arbitrage calculated as of the end of such applicable Bond Year, and any income attributable to the Rebatable Arbitrage, computed in accordance with Section 148(f) of the Code.

In the event that, prior to the time of any payment required to be made from the Rebate Account, the amount in the Rebate Account is not sufficient to make such payment when such payment is due, the District shall calculate or cause to be calculated the amount of such deficiency and deposit an amount received from any legally available source equal to such deficiency prior to the time such payment is due. Each payment required to be made pursuant to this Subsection (a)(1) shall be made to the Internal Revenue Service Center, Ogden, Utah 84201 on or before the date on which such payment is due, and shall be accompanied by Internal Revenue Service Form 8038 -T, as completed and signed by the District and delivered to the Fiscal Agent, or shall be made in such other manner as provided under the Code.
(b) Disposition of Unexpended Funds. Any funds remaining in the accounts of the Rebate Fund after redemption and payment of the Bonds or an issue of Parity Bonds and after making the payments described in Subsection (a)(1)(iii) may be withdrawn by the District and utilized in any manner by the District.
(c) Survival of Defeasance and Final Payment . Notwithstanding anything in this Section or this Fiscal Agent Agreement to the contrary, the obligation to comply with the requirements of this Section shall survive the defeasance and final payment of the Bonds and any Parity Bonds with respect to which an account has been created in the Rebate Fund. (d) Amendment Without Consent of Owners . This Section may be deleted or amended in any manner without the co nsent of the Owners, provided that prior to such event there is delivered to the District and the Fiscal Agent an opinion of Bond Counsel to the effect that such deletion or amendment will not adversely affect the exclusion from gross income for federal in come tax purposes of interest on the Bonds and any issue of Parity Bonds issued on a tax-exempt basis.

Section 3.8. Surplus Taxes Fund. After making the transfers required by Sections 3.3, 3.4,

3.5, 3.6 and 3.7 hereof, as soon as practicable after each September 1, th e Fiscal Agent shall transfer all remaining amounts in the Special Tax Fund not so transferred to the Surplus Taxes Fund, unless on or prior to such date, it has received a Certificate of an Authorized Representative directing that certain amounts be retained in the Special Tax Fund because the District has included such amounts as being available in the Special Tax Fund in calculating the amount of the levy of Special Taxes for such Fiscal 623

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Year pursuant to Section 5.2(b) hereof. Moneys deposited in the Surplus Taxes Fund will be transferred by the Fiscal Agent as directed by the District in a Certificate of an Authorized Representative (i) to the Administrative Expense Fund to pay Administrative Expenses to the extent that the amounts on deposit in the Administrative Expense Fund are insufficient to pay Administrative Expenses, (ii) to the Interest Account, the Principal Account or the Redemption Account of the Special Tax Fund to pay the principal of, including Sinking Fund Payments, premium, if any, and i nterest on the Bonds and any Parity Bonds when due in the event that moneys in the Special Tax Fund and the Reserve Account of the Special Tax Fund are insufficient therefor; (iii) to the Reserve Account in order to replenish the Reserve Account to the Res erve Requirement; (iv) to finance any additional public facilities authorized to be financed by the District pursuant to Section 3.4 of the Acquisition Agreement, or (v) to the District for any other lawful purpose of the District.

Moneys deposited in the Surplus Taxes Fund are not pledged to the repayment of the Bonds and may be used by the District for any lawful purpose. In the event that the District reasonably expects to use any portion of the moneys in the Surplus Taxes Fund to pay debt service on an y Outstanding Bonds, the District shall transfer such amounts to the Fiscal Agent and instruct in writing the Fiscal Agent to segregate such amount into a separate subaccount; and the moneys on deposit in such subaccount of the Surplus Taxes Fund shall be invested in Authorized Investments the interest on which is excludable from gross income under Section 103 of the Code (other than bonds the interest on which is a tax preference item for purposes of computing the alternative minimum tax of individuals under the Code) or in Authorized Investments at a yield not in excess of the yield on the Bonds, unless, in the opinion of Bond Counsel, investment at a higher yield will not adversely affect the exclusion from gross income for federal income tax purposes of interest on the Bonds then Outstanding.

Section 3.9. Improvement Fund.
(a) The moneys in the Costs of Issuance Account shall be used and withdrawn by the Fiscal Agent from time to time to pay the Costs of Issuance upon submission of a Certificate of Authorized Representative stating (i) the person to whom payment is to be made, (ii) the amount to be paid, (iii) the purpose for which the obligation was incurred, (iv) that such payment is a proper charge against the Costs of Issuance Account, and (v) that such amounts have not been the subject of a prior disbursement from the Costs of Issuance Account , in each case together with a statement or invoice for each amount requested thereunder. On the last Business Day that is no later than six mon ths after the Delivery Date, the Fiscal Agent shall transfer any amount remaining in the Costs of Issuance Account to the Facilities Account of the Improvement Fund and, upon making such transfer, the Costs of Issuance Account shall be closed.
(b) The moneys i n the Facilities Account of the Improvement Fund shall be disbursed by the Fiscal Agent , as directed by the District in accordance with the Acquisition Agreement, upon receipt by the Fiscal Agent of a Certificate of Authorized Representative which shall (i) set forth the amount required to be disbursed, and the purpose for which the disbursement is to be made (which shall be for a Project Cost otherwise permitted to be paid from the Improvement Fund or to reimburse expenditures of the District, the Developer or any other party for Project Costs previously paid in accordance with the Acquisition Agreement), (ii) certify that the disbursement is a proper expenditure form the Improvement Fund, and the person to which the disbursement is to be paid with payment instructions, and (i ii) certify that no portion of the amount then being requested to be disbursed was set forth in any written direction previously filed requesting a disbursement. 624

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(c) Subject to any requirement of the Acquisition Agreement, if the District s hall determine that all or a specified portion of the amount remaining in any account in the Improvement Fund is no longer needed to pay the costs otherwise payable from such account, the District may direct the Fiscal Agent in a Certificate of an Authoriz ed Representative to transfer all or such specified portion, as applicable, of the moneys remaining on deposit in such account to any other of such accounts and after all amounts to be paid from such accounts are satisfied may direct the Fiscal Agent in a Certificate of an Authorized Representative to transfer it to the Fiscal Agent for deposit in the Special Tax Fund.

Section 3.10. Investments. Moneys held in any of the funds, accounts and subaccounts under this Fiscal Agent Agreement shall be invested by the Fiscal Ag ent in accordance with the limitations set forth below only in Authorized Investments which shall be deemed at all times to be a part of such funds, accounts and subaccounts. Any loss resulting from such Authorized Investments shall be credited or charged to the fund, account or subaccount from which such investment was made, and any investment earnings on all amounts deposited in the Improvement Fund, the Special Tax Fund and the Rebate Fund and each account therein shall be deposited in those respective funds and accounts.

Moneys in the funds, accounts and subaccounts held under this Fiscal Agent Agreement may be invested by the Fiscal Agent as directed by the District from time to time, in Authorized Investments subject to the following restrictions (it being understood that the Fiscal Agent may rely conclusively on the investment direction of the District as to the suitability and legality of the directed investments, including such direction’s compliance with the terms below):
(a) Moneys in the Improvement Fund shall be invested in Authorized Investments which will by their terms mature, or in the case of an Investment Agreement are available without penalty, as close as practicable to the date the District estimates the moneys represented by the particular investment will be needed for withdrawal from the Improvement Fund. Notwithstanding anything herein to the contrary, amounts in the Improvement Fund three years after the Delivery Date for the Bonds and the proceeds of each issue of Parity Bonds issued o n a tax-exempt basis which are remaining on deposit in the Improvement Fund on the date which is three years following the date of issuance of such issue of Parity Bonds shall be invested only in Authorized Investments the interest on which is excluded from gross income under Section 103 of the Code (other than bonds the interest on which is a tax preference item for purposes of computing the alternative minimum tax of individuals and corporations under the Code) or in Authorized Investments at a yield not in excess of the yield on the issue of Bonds or Parity Bonds from which such proceeds were derived, unless in the opinion of Bond Counsel such restriction is not necessary to prevent interest on the Bonds or any Parity Bonds which were issued on a tax-exempt basis for federal income tax purposes from being included in gross income for federal income tax purposes.
(b) Moneys in the Special Tax Fund and the Interest Account, the Principal Account and the Redemption Account of the Special Tax Fund shall be investe d only in Authorized Investments which will by their terms mature, or in the case of an Investment Agreement, be available for withdrawal without penalty, on such dates so as to ensure the payment of principal of, premium, if any, and interest on the Bonds and any Parity Bonds as the same become due. (c) Moneys in the Reserve Account of the Special Tax Fund may be invested only in Authorized Investments which, taken together, have a weighted average maturity not in excess of five years; provided that such amounts may be invested in an Authorized Investment to the later of the final maturity of the Bonds or any Parity Bonds so long as such amounts may be withdrawn at any time, without penalty, for application in accordance with Section 3.6 hereof; and provided that no such 625

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Authorized Investment of amounts in the Reserve Account allocable to the Bonds or an issue of Parity Bonds shall mature later than the respective final maturity date of the Bonds or the issue of Parity Bonds, as applicable.
(d) Moneys in the Rebate Fund shall be invested only in Authorized Investments of the type described in clause (1) of the definition thereof which by their terms will mature, as nearly as practicable, on the dates such amounts are needed to be paid to the United States Government pursuant to Section 3.7 hereof or in Authorized Investments of the type described in clause (7) of the definition thereof.
(e) In the absence of written direction from the District, the Fiscal Agent shall hold moneys hereunder uninvested.

The Fiscal Agent shall sell or present for redemption, any Authorized Investment whenever it may be necessary to do so in order to provide moneys to meet any payment or transfer to such funds and accounts or from such funds and accounts. For the purpose of determining at any given time the balance in any such funds and accounts, any such investments constituting a part of such funds and accounts shall be valued at their cost, except that amounts in the Reserve Account shall be valued at the market value thereof at least semiannually on or before each Interest Payment Date. In making any valuations hereunder , the Fiscal Agent may utilize such generally recognized pricing information services (including brokers and dealers in securities) as may be available to it, including, without limitation, those available through its regular accounting system, and conclusively rely , without liability, thereon. Notwithstanding anything herein to the contrary, the Fiscal Agent shall not be responsible for any loss from investments, sales or transfers undertaken in accordance with the provisions of this Fiscal Agent Agreement.

The Fiscal Agent may sell, or present for redemption any Authorized Investment so purchased whenever it shall be necessary to provide moneys to meet any required payment, transfer, withdrawal or disbursement from the fund or account to which such Authorized Investment is credited, and, subject to the provisions of Section 7.4, the Fiscal Agent shall not be liable or responsible for any loss resulting from such investme nt. For investment purposes, the Fiscal Agent may commingle the funds and accounts established hereunder, but shall account for each separately.

The District acknowledges that to the extent regulations of the Comptroller of the Currency or other applicable regulatory entity grant the District the right to receive brokerage confirmations of securities transactions as they occur , at no additional cost , the District will not receive such confirmations to the extent permitted by law. The Fiscal Agent shall furnish the District periodic cash transaction statements which include detail for all investment transactions made by the Fiscal Agent hereunder, except that it shall not be required to furnish such statement for a month in which no activity has occurred in the subject account. The Fiscal Agent and its affiliates may act as sponsor, advisor, depository, principal or agent in the holding, acquisition or disposition of any investment. 626

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ARTICLE IV

REDEMPTION OF BONDS AND PARITY BONDS
Section 4.1. Redemption of Bonds.
(a) Optional Redemp tion. The Bonds may be redeemed, at the option of the District, from any source of funds, other than Prepayments, on [any date on or after September 1, 2033], in whole, or in part (in such amounts and maturities as may be designated by the District, with the particular Bonds of such maturities to be selected by the Fiscal Agent by lot), at the following redemption prices expressed as a percentage of the principal amount to be redeemed, together with accrued interest to the date of redemption:

Redemption Dates Redemption Price
September 1, 2033 through August 31, 2034 103%
September 1, 2034 through August 31, 2035 102
September 1, 2035 through August 31, 2036 101
September 1, 2036 and any date thereafter 100
(b) Mandatory Sinking Fund Redemption . The Term Bonds maturing on September 1, 20__ shall be called before maturity and redeemed, from the Sinking Fund Payments that have been deposited into the Principal Account, on September 1, 20__, and on each September 1 thereafter to maturity, in accordance with the schedule of Sinking Fund Payments set forth below. The Term Bonds so called for redemption shall be selected by the Fiscal Agent by lot and shall be redeemed at a redemption price for each redeemed Term Bond equal to the principal amount thereof, plus accrued interest to the redemption date, without premium, as follows:

MATURING SEPTEMBER 1, 20__
Redemption Dates
(September 1) Principal Amount
$

(maturity)

The Term Bonds maturing on September 1, 20__ shall be called before maturity and redeemed, from the Sinking Fund Payments that have been deposited into the Principal Account, on September 1, 20__, and on each September 1 thereafter to maturity, in accordance with the schedule of Sinking Fund Payments set forth below. The Term Bonds so called for redemption shall be selected by the Fiscal Agent by lot and shall be redeemed at a redemption price for each redeemed Term Bond equal to the principal amount thereof, plus accrued interest to the redemption date, without premium, as follows:
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MATURING SEPTEMBER 1, 20__
Redemption Dates
(September 1) Principal Amount
$

(maturity)

The Term Bonds maturing on September 1, 20__ shall be called before maturity and redeemed, from the Sinking Fund Payments that have been deposited into the Principal Account, on September 1, 20_, and on each September 1 thereafter to maturity, in accordance with the schedule of Sinking Fund Payments set forth below. The Term Bonds so called for redemption shall be selected by the Fiscal Agent by lot and shall be redeemed at a redemption price for each redeemed Term Bond equal to the principal amount thereof, plus accrued interest to the redemption d ate, without premium, as follows:

MATURING SEPTEMBER 1, 20_
Redemption Dates
(September 1) Principal Amount
$

(maturity)

If the District purchases Term Bonds and delivers them to the Fiscal Agent at least 45 days prior to an applicable redemption date, the principal amount of the Term Bonds so purchased shall be credited to reduce the Sinking Fund Payment due on such redemption date for the applicable maturity of the Term Bonds. All Term Bonds purchased by the District and delivered to the Fiscal Agent pursuant to this subsection shall be cancelled pursuant to Section 10.1.

In the event of a partial optional redemption or special mandatory redemption or purchase of Term Bonds, each of the remaining Sinking Fund Payments for such Term Bonds, as described above, will be reduced, as nearly as practicable, on a pro rata basis , and the District will provide the Fiscal Agent with a revised schedule for remaining Sinking Fund Payments. (c) Special Mandatory Redemption from Prepayments. The Bonds are subject to redemption as a whole, or in part on a pro rata basis among maturities, on any Interest Payment Date prior to maturity from the proceeds of the prepayment of Special Taxes deposited in the Redemption Account pursuant to this Fiscal Agent Agreement and amounts transferred from the Reserve Account in connection with such prepayment. Such extraordinary mandatory redemption of the Bonds shall be at the following redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), together with accrued interest thereon to the date of redemption:
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Redemption Dates Redemption Price
March 1, 2026 through March 1, 2034 103%
September 1, 2034 and March 1, 2035 102
September 1, 2035 and March 1, 2036 101
September 1, 2036 and any Interest Payment Date thereafter 100

In the event the District elects to redeem Bonds as provided above, the District shall give written notice to the Fiscal Agent of its election to so redeem, the redemption date and the maturi ty dates of the Bonds to be redeemed. The notice to the Fiscal Agent shall be given at least 45 but no more than 60 days prior to the redemption date, or by such later date as is acceptable to the Fiscal Agent, in its sole discretion.
(d) The redemption provisions for Parity Bonds shall be set forth in a Supplemental Fiscal Agent Agreement.

Section 4.2. Selection of Bonds and Parity Bonds for Redemption. If less than all of the Bonds of a maturity are to be redeemed, the portion of any Bond or Parity Bond of a denomination of more than $5,000 to be redeemed shall be in the principal amount of $5,000 or an integral multiple thereof. In selecting portions of such Bonds or Parity Bonds for redemption, the Fiscal Agent shall treat such Bonds or Parity Bonds, as representing t hat number of Bonds or Parity Bonds of $5,000 denominations which is obtained by dividing the principal amount of such Bonds or Parity Bonds to be redeemed in part by $5,000, and such selection of Bonds for redemption shall be by lot. The Fiscal Agent shall promptly notify the District in writing of the Bonds or Parity Bonds, or portions thereof, selected for redemption.

Section 4.3. Notice of Redemption. When Bonds or Parity Bonds are to be redeemed under Section 4.1 above, or under another redemption provision set f orth in a Supplemental Fiscal Agent Agreement relating to any Parity Bonds, the Fiscal Agent shall give notice, in the name of the District, of the redemption of such Bonds or Parity Bonds. Such notice of redemption shall (a) specify the CUSIP numbers (if any), the numbers and the maturity date or dates of the Bonds or Parity Bonds selected for redemption, except that where all of the Bonds or an issue of Parity Bonds are subject to redemption, or all the Bonds or Parity Bonds of one maturity, are to be re deemed, the bond numbers of such issue need not be specified; (b) state the date fixed for redemption and surrender of the Bonds or Parity Bonds to be redeemed; (c) state the redemption price; (d) state the place or places where the Bonds or Parity Bonds a re to be redeemed; (e) in the case of Bonds or Parity Bonds to be redeemed only in part, state the portion of such Bond or Parity Bond which is to be redeemed; (f) state the date of issue of the Bonds or Parity Bonds as originally issued; (g) state the rate of interest borne by each Bond being redeemed; and (h) state any other descriptive information needed to identify accurately the Bonds or Parity Bonds being redeemed as shall be specified by the District. Such notice shall further state that on the date fixed for redemption, there shall become due and payable on each Bond, Parity Bond or portion thereof called for redemption, the principal thereof, together with any premium, and interest accrued to the redemption date, and that from and after such date, interest thereon shall cease to accrue and be payable. Such redemption notices may state that no representation is made as to the accuracy or correctness of the CUSIP numbers printed therein or on the Bonds. At least 30 days but no more than 45 days prior to the redemption date, the Fiscal Agent shall mail a copy of such notice, by first class mail, postage prepaid, to the respective registered Owners thereof at their addresses appearing on the Bond Register, and to the original purchaser of the Bonds or Parity Bonds, as applicable; provided, however, that so long as the Bonds are registered in the name of the Depository 629

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or the Nominee, notice of redemption shall be given in accordance with the procedures of the Depository. The actual receipt by the Owner of any Bond or Parity Bond or the original purchaser of any Bond of notice of such redemption shall not be a condition precedent to redemption, and neither the failure to receive nor any defect in such notice shall affect the validity of the proceedings for the redemption of such Bonds or Parity Bonds, or the cessation of interest on the redemption date. A certificate by the Fiscal Agent that notice of such redemption has been given as herein provided shall be conclusive as against all parties and the Owner shall not be entitled to show that he or she failed to receive notice of such redemption.

In addition to the foregoing notice, further notice shall be given by the Fiscal Agent as set out below, but no defect in said further notice nor any failure to g ive all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as above prescribed.

Each further notice of redemption shall be transmitted to EMMA for purposes of S.E.C.

Rule 15(c)2-12.

With respect to any notice of optional redemption of Bonds, such notice may state that such redemption shall be conditional upon the receipt by the Fiscal Agent on or prior to the date fixed for such redemption of moneys sufficient to pay the pr incipal of, premium, if any, and interest on such Bonds to be redeemed and that, if such moneys shall not have been so received, said notice shall be of no force and effect and the Fiscal Agent shall not be required to redeem such Bonds. In the event that such notice of redemption contains such a condition and such moneys are not so received, the redemption shall not be made, and the Fiscal Agent shall within a reasonable time thereafter give notice, in the manner in which the notice of redemption was give n, that such moneys were not so received.

Upon the payment of the redemption price of any Bonds and Parity Bonds being redeemed, each check or other transfer of funds issued for such purpose shall to the extent practicable bear the CUSIP number identifying, by issue and maturity, the Bonds and Parity Bonds being redeemed with the proceeds of such check or other transfer.

Section 4.4. Partial Redemption of Bonds or Parity Bonds. Upon surrender of any Bond or Parity Bond to be redeemed in part only, the District shall ex ecute and the Fiscal Agent shall authenticate and deliver to the Bondowner, at the expense of the District, a new Bond or Bonds or a new Parity Bond or Parity Bonds of authorized denominations equal in aggregate principal amount to the unredeemed portion of the Bonds surrendered, with the same interest rate and the same maturity, or, in the case of surrender of a Parity Bond, a new Parity Bond or Parity Bonds subject to the foregoing limitations.

Section 4.5. Effect of Notice and Availability of Redemption Money. Notice of redemption having been duly given, as provided in Section 4.3, and the amount necessary for the redemption having been made available for that purpose and being available therefor on the date fixed for such redemption:
(a) The Bonds and Parity Bonds, or p ortions thereof, designated for redemption shall, on the date fixed for redemption, become due and payable at the redemption price thereof as provided in this Fiscal Agent Agreement, or in any Supplemental Fiscal Agent Agreement with respect 630

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to any Parity Bonds, anything in this Fiscal Agent Agreement or in the Bonds or the Parity Bonds to the contrary notwithstanding;
(b) Upon presentation and surrender thereof at the Principal Office of the Fiscal Agent, the redemption price of such Bonds and Parity Bonds shall be paid to the Owners thereof; (c) As of the redemption date the Bonds or Parity Bonds, or portions thereof so designated for redemption shall be deemed to be no longer Outstanding and such Bonds or Parity Bonds, or portions thereof, shall cease to bear further interest; and (d) As of the date fixed for redemption no Owner of any of the Bonds, Parity Bonds or portions thereof so designated for redemption shall be entitled to any of the benefits of this Fiscal Agent Agreement or any Supplemental Fiscal Agent Agreement, or to any other rights, except with respect to payment of the redemption price and interest accrued to the redemption date from the amounts so made available.

ARTICLE V

COVENANTS AND WARRANTY
Section 5.1. Warranty. The District shall preserve and protect the security p ledged hereunder to the Bonds and any Parity Bonds against all claims and demands of all persons.

Section 5.2. Covenants. So long as any of the Bonds or Parity Bonds issued hereunder are Outstanding and unpaid, the District makes the following covenants with the Bondo wners under the provisions of the Act and this Fiscal Agent Agreement (to be performed by the District or its proper officers, agents or employees), which covenants are necessary and desirable to secure the Bonds and any Parity Bonds and tend to make them more marketable; provided, however, that said covenants do not require the District to expend any funds or moneys other than the Special Taxes and other amounts deposited to the Special Tax Fund or Administrative Expense Fund:
(a) Punctual Payment; Against Encumbrances. The District covenants that it will receive all Special Taxes in trust for the Owners (other than the Special Taxes to be deposited in the Administrative Expense Fund or other funds held by the District) and will deposit Special Taxes in the Special Tax Fund as provided herein, and the District shall have no beneficial right or interest in the amounts so deposited except as provided by this Fiscal Agent Agreement. All such Special Taxes shall be disbursed, allocated and applied solely to the us es and purposes set forth herein, and shall be accounted for separately and apart from all other money, funds, accounts or other resources of the District.

The District further covenants that, in connection with the delivery of any Prepayment to the Fiscal Agent, the District will also deliver to the Fiscal Agent a certificate of the Special Tax Administrator identifying with respect to the Prepayment: (i) the “Administrative Fees” (as defined in the Rate and Method of Apportionment), with instructions that said amount shall be deposited in the Administrative Expense Fund, (i i) the amount that represents the Special Taxes levied in the current Fiscal Year on the subject Assessor’s Parcel which had not been paid, with instructions to deposit portions of said amount in the Interest Account and the Principal Acco unt of the Special Tax Fund, (iii) the amount of the “Reserve Fund Credit” (as defined in the Rate and Method of Apportionment), with instructions to withdraw said amount from the Reserve Account and transfer it to the Redemption 631

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Account in connection with the redemption of Bonds, and ( iv) the amount to be deposited in the Redemption Account.

The District covenants that it will duly and punctually pay or cause to be paid the principal of and interest on every Bond and Parity Bond issued hereunder, together with the premium, if any, thereon on the date, at the place and in the manner set forth in the Bonds and Parity Bonds and in accordance with this Fiscal Agent Agreement to the extent that Net Special Taxes and other amounts pledged hereunder are available therefor, and that the payments into the funds and accounts created hereunder will be made, all in strict conformity with the terms of the Bonds, the Parity Bonds and this Fiscal Agent Agreement, and that it will faithfully observe and perform all of the conditions, covenants and requirements of this Fiscal Agent Agreement and all Supplemental Fiscal Agent Agreements and of the Bonds and any Parity Bonds issued hereunder.

The District will not mortgage or otherwise encumber, pledge or place any charge upon any of the Net Special Taxes except as provided in this Fiscal Agent Agreement, and will not issue any obligation or security having a lien or charge upon the Net Special Taxes superior to or on a pari ty with the Bonds, other than Parity Bonds. Nothing herein shall prevent the District from issuing or incurring indebtedness which is payable from a pledge of Net Special Taxes which is subordinate in all respects to the pledge of Net Special Taxes to repay the Bonds and the Parity Bonds. (b) Levy and Collection of Special Tax. On or before each August 1, commencing August 1, 2026, the Fiscal Agent shall provide a written notice to the District stating the amounts then on deposit in the various funds and acco unts established by the Fiscal Agent pursuant to this Fiscal Agent Agreement. The receipt of such notice by the District shall in no way affect the obligations of the District under the following paragraphs. Upon receipt of a copy of such notice, the Dis trict shall communicate with the Treasurer or other appropriate official of the County to ascertain the relevant Assessor’s Parcels on which the Special Taxes are to be levied, taking into account any Assessor’s Parcel splits during the preceding and then current year.

The District may retain an Independent Financial Consultant to assist in the levy of the Special Taxes each Fiscal Year in accordance with the Ordinance such that the computation of the levy is complete before the final date on which the Treasurer of the County will accept the transmission of the Special Tax amounts for the Assessor’s Parcels within Improvement Area No. 11 for inclusion on the next secured tax roll. Upon the completion of the computation of the amounts of the levy, and approval by the legislative body of the District, the District shall prepare or cause to be prepared, and shall transmit to the Treasurer of the County, such data as the Treasurer of the County requires to include the levy of the Special Taxes on the next secured tax roll.

The District shall fix and levy the amount of Special Taxes (taking into consideration reasonably anticipated delinquencies) required for the payment of principal of and interest on Outstanding Bonds becoming due and payable during the ensuing year including any necessary replenishment or expenditure of the Reserve Account for the Bonds, an amount equal to the estimated Administrative Expenses and any additional amounts necessary for expenses incurred in connection with administration or enforcement of delinquent Special Taxes. The District further covenants, to the maximum extent permitted by law, that it will take no actions that would discontinue or cause the discontinuance of the Special Tax levy or the District’s authority to levy the Special Tax for so long as the Bonds are Outstanding.
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The Special Taxes shall be payable and collected in the same manner and at the same time and in the same installment as the general taxes on real property are payable, and have the same priority, become delinquent at the same times and in the same proportionate amounts and bear the same proportionate penalties and interest after delinquency as do the general taxes on real property; provided, the legislative body of the District may provide for direct collecti on of the Special Taxes in certain circumstances.

The fees and expenses of the Independent Financial Consultant retained by the District to assist in computing the levy of the Special Taxes hereunder and any reconciliation of amounts levied to amounts received, as well as the costs and expenses of the District (including a charge for District staff time) in conducting its duties hereunder, shall be an Administrative Expense hereunder. (c) Commence Foreclosure Proceedings. Pursuant to Section 53356.1 of the Act, the District hereby covenants with and for the benefit of the Bondowners that it will order, and cause to be commenced, on or before October 1 of the Fiscal Year immediately following the Fiscal Year in which a delinquency in the payment of a Special Tax occurs, and thereafter diligently prosecute to judgment (unless such delinquency is theretofore brought current), an action in the superior court to foreclose the lien of any Special Tax or installment thereof not paid when due; provided that the District need not commence or pursue such proceedings with respect to any property owned by a single property owner who is delinquent in the payment of Special Taxes in an amount less than $5,000 if both (i) the aggregate amount of such delinquent Special Taxes does not exceed 5% of the total Special Taxes due and payable for the Fiscal Year in question and (ii) the balance on deposit in the Reserve Account of the Special Tax Fund is not less than the Reserve Requirement.

Special Taxes collected as a result of a foreclosure proceeding shall be deposited in the Special Tax Fund and only inure to the benefit of the Bonds or Parity Bonds in the manner provided in Section 3.2.
(d) Payment of Claims . The District will pay and discharge any and all lawful claims for labor, materials or supplies which, if unpaid, might become a lien or charge upon the Net Special Taxes or other funds in the Special Tax Fund or which might impair the security of the Bonds or any Parity Bonds then Outstanding; provided that nothing herein contained shall require the District to make any such payments so long as the District in good faith shall contest the validity of any such claims.
(e) Books and Accounts . The District will keep proper books of records and accounts, separate from all other records and accounts of the District, in which complete and correct entries shall be made of all transactions relating to the Project, the levy of the Special Tax and the deposits to the Special Tax Fund. Such books of records and accounts shall at all times during business hours be subject to the inspection by the Owners of not less than 10% of the principal amount of the Bonds then Outstanding or the Owners of not less than 10% of the principal amount of any issue of Parity Bonds then Outstanding or their representatives authorized in writing. (f) Federal Tax Covenants . Notwithstanding any other provision of this Fiscal Agent Agreement, absent an opinion of Bond Counsel that the exclusion from gross income of interest on the Bonds and any Parity Bonds issued on a tax-exempt basis for federal income tax purposes will not be adversely affected for federal income tax purposes, the District covenants to comply with all applicable requirements of the Code necessary to preserve such exclusion from gross income and specifically covenants, without limiting the generality of the foregoing, as follows:
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(1) Private Activity. The District will take no action or refrain from taking any action or make any use of the proceeds of the Bonds or of any other moneys or property which would cause the Bonds and any Parity Bonds issued on a tax -exempt basis for federal income tax purposes to be “private activity bonds” within the meaning of Section 141 of the Code; (2) Arbitrage. The District will make no use of the proceeds of the Bonds or of any other amounts or property, regardless of the source, or take any action or refrain from taking any action which will cause the Bonds to be “arbitrage bonds” within the meaning of Section 148 of the Code;
(3) Federal Guaranty. The District will make no use of the proceeds of the Bonds or any Parity Bonds to be “federally guaranteed” within the meaning of Section 149(b) of the Code;
(4) Information Reporting. The District will take or cause to be taken all necessary action to comply with the informational reporting requirement of Section 149(e) of the Code; (5) Hedge Bonds. The District will make no use of the proceeds of the Bonds or any Parity Bonds or any other amounts or property, regardless of the source, or take any action or refrain from taking any action that would cause the Bonds or any Parity Bonds to be considered “hedge bonds” within the meaning of Section 149(g) of the Code unless the District takes all necessary action to assure compliance with the requirements of Section 149(g) of the Code to maintain the exclusion from gross income for federal income tax purposes of interest on the Bonds and any applicable Parity Bonds;
(6) Miscellaneous. The District will take no action or refrain from taking any action inconsistent with the expectations stated in the Tax Certificate in connection with the Bonds and any issue of Parity Bonds and will comply with the covenants and requirements stated therein and incorporated by reference herein; and
(7) Other Tax Exempt Issues. The District will not use proceeds of other tax exempt securities to redeem any Bonds without first obtaining the written opinion of Bond Counsel that doing so will not impair the exclusion from gross income for federal income tax purposes of interest on the Bonds and any Parity Bonds issued on a tax-exempt basis. (g) Reduction of Maximum Special Taxes . The District hereby finds and determines that, historically, delinquencies in the payment of special taxes authorized pursuant to the Act in community facilities districts in Southern California have from tim e to time been at levels requiring the levy of special taxes at the maximum authorized rates in order to make timely payment of principal of and interest on the outstanding indebtedness of such community facilities districts. For this reason, the District hereby determines that a reduction in the maximum Special Tax rates authorized to be levied on Assessor’s Parcels in Improvement Area No. 11 below the levels provided in this Section would interfere with the timely retirement of the Bonds and Parity Bonds. The District determines it to be necessary in order to preserve the security for the Bonds and Parity Bonds to covenant, and, to the maximum extent that the law permits it to do so, the District hereby does covenant, that it shall not initiate proceedin gs to reduce the maximum Special Tax rates for Improvement Area No. 11, unless, in connection therewith, (i) the District receives a certification from one or more Independent Financial Consultants which, when taken together, concludes that, on the basis of the Assessor’s Parcels of land and improvements existing in Improvement Area No. 11 as of 634

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the July 1 preceding the reduction, the maximum amount of the Special Tax which may be levied on then existing Developed Property (as defined in the Rate and Method of Apportionment) in each Bond Year for any Bonds Outstanding will equal at least 110% of the sum of the estimated Administrative Expenses and gross debt service in each Bond Year on all Bonds and Parity Bonds to remain Outstanding after the reduction is approved, (ii) the District finds that any reduction made under such conditions will not adversely affect the interests of the Owners of the Bonds, (iii) the District is not delinquent in the payment of the principal of or interest on the Bonds or any Parity Bonds, and (iv) all Facilities included in the Project have been accepted by the City and all related Payment Requests have been paid in full. For purposes of estimating Administrative Expenses for the foregoing calculation, the Independent Financial C onsultants shall compute the Administrative Expenses for the current Fiscal Year and escalate that amount by two percent (2%) in each subsequent Fiscal Year.

The District further covenants that in the event an ordinance is adopted by initiative pursuant to Section 3 of Article XIIIC of the California Constitution, which purports to reduce or otherwise alter the maximum Special Tax rates , it will commence and pu rsue legal action seeking to preserve its ability to comply with its covenant contained in the preceding paragraph. (h) Covenants to Defend . The District covenants that, in the event that any initiative is adopted by the qualified electors in Improvement Area No. 11 which purports to reduce the minimum or the maximum Special Tax below the levels specified in Section 5.2(g) above or to limit the power of the District to levy the Special Taxes for the purposes set forth in Section 5.2(b) above, it will commence and pursue legal action in order to preserve its ability to comply with such covenants.
(i) Limitation on Right to Tender Bonds . The District hereby covenants that it will not adopt any policy pursuant to Section 53341.1 of the Act permitting the tender of Bo nds or Parity Bonds in full payment or partial payment of any Special Taxes unless the District shall have first received a certificate from an Independent Financial Consultant that the acceptance of such a tender will not result in the District having ins ufficient Special Tax revenues to pay the principal of and interest on the Bonds and Parity Bonds when due.
(j) Continuing Disclosure. The District hereby covenants and agrees that it will comply with and carry out all of its obligations under the Continuing Disclosure Agreement and with the terms of any agreement executed by the District with respect to any Parity Bonds to assist the Underwriter in complying with Rule 15(c)2-12 adopted by the Securities and Exchange Commission.

Notwithstanding any other provision of this Fiscal Agent Agreement, failure of the District to comply with its obligations under the Continuing Disclosure Agreement shall not be considered an event of default hereunder, and the sole remedy, in the event of any failure of the District t o comply with the Continuing Disclosure Agreement shall be an action to compel performance. Any Bondowner or Beneficial Owner may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to c ause the District to comply with its obligations under this Section. For purposes of this Section, “Beneficial Owner” means any Person who (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes. (k) Further Assurances. The District shall make, execute and deliver any and all such further agreements, instruments and assurances as may be reasonably necessary or proper to carry out the intention or to facilitate the performance of this Fiscal Agent Agreement and for the better 635

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assuring and confirming unto the Owners of the Bonds and any Parity Bonds of the rights and benefits provided herein.
(l) Opinions. In the event that an opinion is rendered by Bond Counsel as provided herein from a firm other than the firm which rendered the Bond Counsel opinion at closing, such subsequent opinion by Bond Counsel shall also include the conclusions set forth in the original Bond Counsel opinion relating to the exclusion of interest on the Bonds from gross income for federal income tax purposes.

ARTICLE VI

AMENDMENTS TO FISCAL AGENT AGREEMENT
Section 6.1. Supplemental Fiscal Agent Agreement s or Orders Not Requiring Bondowner Consent. The District may from time to time, and at any time, without notice to or consent of any of the Bondowners, adopt Supplemental Fiscal Agent Agreement s for any of the following purposes:
(a) to cure a ny ambiguity, to correct or supplement any provisions herein which may be inconsistent with any other provision herein, or to make any other provision with respect to matters or questions arising under this Fiscal Agent Agreement or in any Supplemental Fiscal Agent Agreement or order, provided that such action is not materially adverse to the interests of the Bondowners, as evidenced by the opinion of Bond Counsel delivered pursuant to Section 6.4 hereof; (b) to add to the covenants and agreements of and the li mitations and the restrictions upon the District contained in this Fiscal Agent Agreement, other covenants, agreements, limitations and restrictions to be observed by the District which are not contrary to or inconsistent with this Fiscal Agent Agreement as theretofore in effect or which further secure Bond payments; (c) to provide for the issuance of any Parity Bonds, and to provide the terms and conditions under which such Parity Bonds may be issued, subject to and in accordance with the provisions of this Fiscal Agent Agreement;
(d) to modify, amend or supplement this Fiscal Agent Agreement in such manner as to permit the qualification hereof under the Trust Indenture Act of 1939, as amended, or any similar federal statute hereafter in effect, or to comply with the Code or regulations issued thereunder, and to add such other terms, conditions and provisions as may be permitted by said act or similar federal statute, and which shall not materially adversely affect the interests of the Owners of the Bonds or any Parity Bonds then Outstanding , as evidenced by the opinion of Bond Counsel delivered pursuant to Section 6.4 hereof;
(e) to modify, alter or amend the Rate and Method of Apportionment in any manner so long as such changes do not reduce the maximum Special Taxes that may be levied in each year to an amount which is less than 110% of the principal and interest due in each corr esponding future Bond Year with respect to the Bonds and Parity Bonds Outstanding as of the date of such amendment, as certified to the Fiscal Agent by an Authorized Representative of the City; or 636

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(f) to modify, alter, amend or supplement this Fiscal Agent Agreement in any other respect which is not materially adverse to the Bondowners , as evidenced by the opinion of Bond Counsel delivered pursuant to Section 6.4 hereof.

Notwithstanding anything to the contrary herein, no Supplemental Fiscal Agent Agreement executed under this Article VI may modify any of the duties, rights, protections or responsibilities of the Fiscal Agent without the written consent of the Fiscal Agent.

Section 6.2. Supplemental Fiscal Agent Agreements or Orders Requiring Bondowner Consent. Exclusive of the Supplemental Fiscal Agent Agreement s described in Section 6.1, the Owners of not less than a majority in aggregate principal amount of the Bonds and Parity Bonds Outstanding shall have the right to consent to and approve the adoption by the District o f such Supplemental Fiscal Agent Agreements as shall be deemed necessary or desirable by the District for the purpose of waiving, modifying, altering, amending, adding to or rescinding, in any particular, any of the terms or provisions contained in this Fiscal Agent Agreement; provided, however, that nothing herein shall permit, or be construed as permitting, (a) an extension of the maturity date of the principal, or the payment date of interest on, any Bond, (b) a reduction in the principal amount of, or redemption premium on, any Bond or the rate of interest thereon, (c) a preference or priority of any Bond over any other Bond, or (d) a reduction in the aggregate principal amount of the Bonds and Parity Bonds the Owners of which are required to consent to such Supplemental Fiscal Agent Agreement, without the consent of the Owners of all Bonds and Parity Bonds then Outstanding.

If at any time the District shall desire to adopt a Supplemental Fiscal Agent Agreement, which pursuant to the terms of this Section shall require the consent of the Bondowners, the District shall so notify the Fiscal Agent and shall deliver to the Fiscal Agent a copy of the proposed Supplemental Fiscal Agent Agreement . The Fiscal Agent shall, at the expense of the District, cause not ice of the proposed Supplemental Fiscal Agent Agreement to be mailed, by first class mail, postage prepaid, to all Bondowners at their addresses as they appear in the Bond Register. Such notice shall briefly set forth the nature of the proposed Supplement al Fiscal Agent Agreement and shall state that a copy thereof is on file at the office of the Fiscal Agent for inspection by all Bondowners. The failure of any Bondowners to receive such notice shall not affect the validity of such Supplemental Fiscal Agent Agreement when consented to and approved by the Owners of not less than a majority in aggregate principal amount of the Bonds and Parity Bonds Outstanding if and as required by this Section.

Whenever at any time within one year after the date of the first mailing of such notice, the Fiscal Agent shall receive an instrument or instruments purporting to be executed by the Owners of not less than a majority in aggregate principal amount of the Bonds and Parity Bonds Outstanding, which instrument or instruments shall refer to the proposed Supplemental Fiscal Agent Agreement described in such notice, and shall specifically consent to and approve the adoption thereof by the District substantially in the form of the copy referred to in such notice as on file wi th the Fiscal Agent, such proposed Supplemental Fiscal Agent Agreement, when duly adopted by the District, shall thereafter become a part of the proceedings for the issuance of the Bonds and any Parity Bonds. In determining whether the Owners of a majorit y of the aggregate principal amount of the Bonds and Parity Bonds have consented to the adoption of any Supplemental Fiscal Agent Agreement, Bonds or Parity Bonds which are owned by the District or by any Person directly or indirectly controlling or contro lled by or under the direct or indirect common control with the District, shall be disregarded and shall be treated as though they were not Outstanding for the purpose of any such determination; except that in determining whether the Fiscal Agent shall be protected in relying upon any such approval or consent of an Owner, only Bonds which the Fiscal Agent actually knows to be owned by the District, or by any person directly or indirectly controlling or controlled by or under the direct or indirect common co ntrol with 637

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the District, shall be disregarded unless all Bonds are so owned, in which case such Bonds shall be considered outstanding for the purpose of such determination.

Upon the adoption of any Supplemental Fiscal Agent Agreement and the receipt of consent to any such Supplemental Fiscal Agent Agreement from the Owners of not less than a majority in aggregate principal amount of the Outstanding Bonds and Parity Bonds in instances where such consent is required pursuant to the provisions of this section, this Fiscal Agent Agreement shall be, and shall be deemed to be, modified and amended in accordance therewith, and the respective rights, duties and obligations under this Fiscal Agent Agreement of the District and all Owners of Outstanding Bonds and Pari ty Bonds shall thereafter be determined, exercised and enforced hereunder, subject in all respects to such modifications and amendments.

Section 6.3. Notation of Bonds or Parity Bonds; Delivery of Amended Bonds or Parity Bonds. After the effective date of any action t aken as hereinabove provided, the District may determine that the Bonds or Parity Bonds may bear a notation, by endorsement in form approved by the District, as to such action; and in that case, upon demand of the Owner of any Outstanding Bond at such effective date and presentation of his Bond for the purpose at the Principal Office of the Fiscal Agent or at such additional offices as the Fiscal Agent may select and designate for that purpose, a suitable notation as to such action shall be made on such Bon ds or Parity Bonds. If the District shall so determine, new Bonds so modified as, in the opinion of the District, shall be necessary to conform to such action shall be prepared and executed, and in that case upon demand of the Owner of any Outstanding Bond or Parity Bond at such effective date such new Bonds shall be exchanged at the Principal Office of the Fiscal Agent or at such additional offices as the Fiscal Agent may select and designate for that purpose, without cost to each Owner of Outstanding Bon ds or Parity Bonds, upon surrender of such Outstanding Bonds or Parity Bonds.

Section 6.4. Execution of Supplemental Fiscal Agent Agreements. In executing, or accepting the additional trusts created by, any supplemental fiscal agent agreement permitted by this Article or the modification thereby of the trusts created by this Fiscal Agent Agreement, the Fiscal Agent shall be entitled to receive, and shall be fully protected in relying upon, an opinion of Bond Counsel to the District stating that the execution of such supplemental fiscal agent agreement is authorized or permitted by this Fiscal Agent Agreement and complies with the terms hereof. The Fiscal Agent may, but shall not be obligated to, enter into any such supplemental fiscal agent agreement which affects the Fiscal Agent's own rights, duties or immunities under this Fiscal Agent Agreement or otherwise.

ARTICLE VII

FISCAL AGENT
Section 7.1. Fiscal Agent. The Bank of New York Mellon Trust Company, N.A., having a corporate trust office in Los Angeles, California, is hereby appointed Fiscal Agent for the District for the purpose of receiving all money which the District is required to deposit with the Fiscal Agent hereunder and to allocate, use and apply the same as provided in this Fiscal Agent Agreement. In the event that the District fails to deposit with the Fiscal Agent any amount due hereunder when due, the Fiscal Agent shall provide telephonic notice to the District and shall confirm the amount of such shortfall in writing.
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The Fiscal Agent is hereby authorized to and shall mail by first class mail, postage prepaid, interest payments to the Bondowners, to select Bonds and Parity Bonds for redemption, and to maintain the Bond Register. The Fiscal Agent is hereby authorized to pay the principal of and premium, if any, on the Bonds and Parity Bonds when the same are duly presented to it for payment at maturity or on call and redemption, to provide for the registration of transfer and exchange of Bonds and Parity Bonds presented to it for such purposes, to provide for the cancellation of Bonds and Parity Bonds all as provided in this Fiscal Agent Agreement , and to provide for the authentication of Bonds and Parit y Bonds, and shall perform all other duties assigned to or imposed on it as provided in this Fiscal Agent Agreement. The Fiscal Agent shall keep accurate records of all funds administered by it and all Bonds and Parity Bonds paid, discharged and cancelled by it. The Fiscal Agent shall deliver to the District a monthly accounting of the funds and accounts it holds under this Fiscal Agent Agreement; provided, however, that the Fiscal Agent shall not be obligated to deliver such accounting for any fund or account that has a balance of zero. The Fiscal Agent may establish such funds and accounts as it deems necessary or appropriate to perform its obligations hereunder. The Fiscal Agent undertakes to perform such duties and only such duties as are specificall y set forth in this Fiscal Agent Agreement, and no implied covenants or obligations should be read into this Fiscal Agent Agreement against the Fiscal Agent.

The Fiscal Agent is hereby authorized to redeem the Bonds and Parity Bonds when duly presented for payment at maturity, or on redemption prior to maturity. The Fiscal Agent shall cancel all Bonds and Parity Bonds upon payment thereof in accordance with the provisions of Section 10.1 hereof.

The District shall from time to time, subject to any agreemen t between the District and the Fiscal Agent then in force, pay to the Fiscal Agent compensation for its services, reimburse the Fiscal Agent for all its advances and expenditures, including, but not limited to, advances to and fees and expenses of independent accountants or counsel employed by it in the exercise and performance of its powers and duties hereunder, and indemnify and save the Fiscal Agent, its officers, directors, employees and agents, harmless from and against costs, claims, expenses (includi ng legal fees and expenses), losses, suits, judgments, damages and liabilities, including, without limitation, fees and expenses of its attorneys, not arising from its own negligence or willful misconduct which it may incur in the exercise and performance of its powers and duties hereunder. The foregoing obligation of the District to indemnify the Fiscal Agent shall survive the removal or resignation of the Fiscal Agent or the discharge of the Bonds. When the Fiscal Agent incurs expenses or renders servic es after the occurrence of an event of default, such expenses and the compensation for such services are intended to constitute expenses of administration under any federal or state bankruptcy, insolvency, arrangement, moratorium, reorganization or other debtor relief law. Upon an event of default, and only upon an event of default, the Fiscal Agent shall have a first lien with right of payment prior to payment on account of principal of and premium, if any, and interest on any Bond, upon the trust estate for the foregoing fees, charges and expenses incurred by it.

Section 7.2. Removal of Fiscal Agent. The District may upon thirty (30) days prior written notice, at its sole discretion remove the Fiscal Agent initially appointed, and any successor thereto, by delivering to the Fiscal Agent a written notice of its decision to remove the Fiscal Agent and may appoint a successor or successors thereto; provided that any such successor shall be a bank or trust company having a combined capital (exclusive of borrowed capital) and surplus of at least fifty million dollars ($50,000,000), and subject to supervision or examination by federal or state authority. Any removal shall become effective only upon acceptance of appointment by the successor Fiscal Agent.

If any bank or trust company appointed as a successor publishes a report of condition at least annually, 639

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pursuant to law or to the requirements of any supervising or examining authority above referred to, then for the purposes of this Section the combined capital and surplu s of such bank or trust company shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.

Section 7.3. Resignation of Fiscal Agent. The Fiscal Agent may upon thirty (30) days’ prior written notice, any time resign by giving written notice to the District and by giving to the Owners notice of such resignation, which notice shall be mailed to the Owners at their addresses appearing in the Bond Register. Upon receiving such notice of resignation, the Distric t shall promptly appoint a successor Fiscal Agent by an instrument in writing. Any resignation or removal of the Fiscal Agent and appointment of a successor Fiscal Agent shall become effective only upon acceptance of appointment by the successor Fiscal Agent.

If no appointment of a successor Fiscal Agent shall be made pursuant to the foregoing provisions of this Section 7.3 or Section 7.2 within forty -five (45) days after the Fiscal Agent shall have received written notice from the District of its removal as Fiscal Agent or given to the District written notice of its resignation as Fiscal Agent, the retiring Fiscal Agent, at the expense of the District, or any Owner may apply to any court of competent jurisdiction to appoint a successor Fiscal Agent.

Said court may thereupon, after such notice, if any, as such court may deem proper, appoint a successor Fiscal Agent.

Section 7.4. Liability of Fiscal Agent. The recitals of fact and all promises, covenants and agreements contained herein and in the Bonds and any Parity Bo nds shall be taken as statements, promises, covenants and agreements of the District, and the Fiscal Agent assumes no responsibility for the correctness of the same and makes no representations as to the validity or sufficiency of this Fiscal Agent Agreement, the Bonds, or any Parity Bonds and shall incur no responsibility in respect thereof, other than in connection with its duties or obligations specifically set forth herein, in the Bonds and any Parity Bonds, or in the certificate of authentication assigned to or imposed upon the Fiscal Agent.

The Fiscal Agent shall be under no responsibility or duty with respect to the issuance of the Bonds or any Parity Bonds for value. The Fiscal Agent shall not be liable in connection with the performance of its duties hereunder, except for its own negligence or willful misconduct.

The Fiscal Agent shall be protected in acting upon any notice, resolution, request, consent, order, certificate, report, Bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties. The Fiscal Agent may consult with counsel, who may be counsel to the District, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and prot ection in respect of any action taken or suffered hereunder in good faith and in accordance therewith.

The Fiscal Agent shall not be bound to recognize any Person as the Owner of a Bond unless and until such Bond is submitted for inspection, if required, a nd his title thereto satisfactorily established, if disputed.

Whenever in the administration of its duties under this Fiscal Agent Agreement the Fiscal Agent shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of bad faith on the part of the Fiscal Agent, be deemed to be conclusively proved and established by a written certificate of the District, and such certificate shall be full warrant to the Fiscal Agent for any action taken or suffered under the provisions of this Fiscal 640

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Agent Agreement upon the faith thereof, but in its discretion the Fiscal Agent may, in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may seem reasonable.

The Fiscal Agent shall have no responsibility with respect to any information, statement, or recital in any official statement, offering memorandum or any other disclosure material prepared or distributed with respect to the Bonds.

No provision of this Fiscal Agent Agreement or any other document related hereto shall require the Fiscal Agent to risk or advance its own funds or otherwise incur any financial liability in the performance of its duties or the exercise of its rights hereunder.

The immunities extended to the Fiscal Agent also extend to its directors, officers, employees and agents.

Any bank, corporation or association into which the Fiscal Agent may be merged or converted or with which it may be consolidated, or any bank, corporation or association resulting from any merger, conversion or consolidation to which the Fiscal Agent shall be a party, or any bank, corporation or association succeeding to all or substantially all of the corporate trust business of the Fiscal Agent shall be the successor of the Fiscal Agent hereunder without the execution or filing of any paper with any party hereto or any further act on the part of any of the parties hereto except on the part of any of the parties hereto where an instrument of transfer or assignment is required by law to e ffect such succession, anything herein to the contrary notwithstanding.

Anything in this Fiscal Agent Agreement to the contrary notwithstanding, in no event shall the Fiscal Agent be liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Fiscal Agent has been advised of the likelihood of such loss or damage and regardless of the form of action. The Fiscal Agent shall not be liable to the parties hereto or deemed in breach or default hereunder if and to the extent its performance hereunder is prevented by reason of force majeure. The term “force majeure” means an occurrence that is beyond the control of the Fiscal Agent and could not have been avoided by exercising due care.

Force majeure shall include acts of God, terrorism, war, riots, strikes, fire, floods, earthquakes, epidemics, pandemics, quarantine restrictions, acts of civil or military authority or other similar occurrences.

The Fiscal Agent shall have the right to accept and act upon instructions, including funds transfer instructions (“Instructions”) given pursuant to this Fiscal Agent Agreement and delivered using Electronic Means (“Electronic Means” means the following communications methods: e -mail, secure electronic transmission containing applicable authorization codes, passwords and/or authentication keys issued by the Fiscal Agent, or another method or system specified by the Fiscal Agent as available for use in connection with its services hereunder ); provided, however, that the District shall provide to the Fiscal Agent an incumbency certificate listing officers with the authority to provide such Instructions (“Authorized Officers”) and containing specimen signatures of such Authorized Officers, which incumbency certificate shall be amended by the District whenever a person is to be added or deleted from the listing. If the District elects to give the Fiscal Agent Instructions using Electronic Means and the Fiscal Agent in its discretion elects to ac t upon such Instructions, the Fiscal Agent’s understanding of such Instructions shall be deemed controlling. The District understands and agrees that the Fiscal Agent cannot determine the identity of the actual sender of such Instructions and that the Fisc al Agent shall conclusively presume that directions that purport to have 641

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been sent by an Authorized Officer listed on the incumbency certificate provided to the Fiscal Agent have been sent by such Authorized Officer. The District shall be responsible for e nsuring that only Authorized Officers transmit such Instructions to the Fiscal Agent and that the District and all Authorized Officers are solely responsible to safeguard the use and confidentiality of applicable user and authorization codes, passwords and/or authentication keys upon receipt by the District. The Fiscal Agent shall not be liable for any losses, costs or expenses arising directly or indirectly from the Fiscal Agent’s reliance upon and compliance with such Instructions notwithstanding such directions conflict or are inconsistent with a subsequent written instruction. The District agrees: (i) to assume all risks arising out of the use of Electronic Means to submit Instructions to the Fiscal Agent, including without limitation the risk of the Fiscal Agent acting on unauthorized Instructions, and the risk of interception and misuse by third parties; (ii) that it is fully informed of the protections and risks associated with the various methods of transmitting Instructions to the Fiscal Agent and th at there may be more secure methods of transmitting Instructions than the method(s) selected by the District; (iii) that the security procedures (if any) to be followed in connection with its transmission of Instructions provide to it a commercially reasonable degree of protection in light of its particular needs and circumstances; and (iv) to notify the Fiscal Agent immediately upon learning of any compromise or unauthorized use of the security procedures.

The Fiscal Agent may execute any of the trusts or powers hereof and perform any of its duties by or through attorneys, agents or receivers and shall not be answerable for the conduct of the same if appointed with due care hereunder. The Fiscal Agent shall not be accountable for the use or application by the District of any of the Bonds or the proceeds thereof or for the use or application of any money paid over by the Fiscal Agent in accordance with the provisions of this Fiscal Agent Agreement or for the use and application of money received by any payin g agent. The permissive right of the Fiscal Agent to do things enumerated in this Fiscal Agent Agreement shall not be construed as a duty and the Fiscal Agent shall not be answerable for other than its negligence or willful default.

The Fiscal Agent may become the owner of Bonds secured hereby with the same rights it would have if not Fiscal Agent. The Fiscal Agent shall have no responsibility with respect to compliance by the District with Section 148 of the Code or any covenant in this Fiscal Agent Agre ement regarding yields on investments.

Notwithstanding the effective date of this Fiscal Agent Agreement or anything to the contrary in this Fiscal Agent Agreement, the Fiscal Agent shall have no liability or responsibility for any act or event relating to this Fiscal Agent Agreement which occurs prior to the date the Fiscal Agent formally executes this Fiscal Agent Agreement and commences acting as Fiscal Agent hereunder.

Section 7.5. Interested Transactions. The Fiscal Agent and its officers and employees may acquire and hold Bonds with the same effect as if it were not Fiscal Agent. The Fiscal Agent, either as principal or agent, may engage in or be interested in any financial or other transaction with the District.

Section 7.6. Agents. The Fiscal Agent may execute any of its trusts or powers or perform its duties through attorneys, agents or receivers and the Fiscal Agent shall not be answerable for the negligence, default or misconduct of any such attorney, agent or receiver selected by it with reasonable care.
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ARTICLE VIII

EVENTS OF DEFAULT; REMEDIES
Section 8.1. Events of Default. Any one or more of the following events shall constitute an “event of default”:
(a) Default in the due and punctual payment of the principal of or redemption premium, if any, on any Bond when and as the same shall become due and payable, whether at maturity as therein expressed, by declaration or otherwise;
(b) Default in the due and punctual payment of the interest on any Bond when and as the same shall become due and payable; or
(c) Except as described in (a) or (b), default shal l be made by the District in the observance of any of the agreements, conditions or covenants on its part contained in this Fiscal Agent Agreement, any Supplemental Fiscal Agent Agreement , the Bonds, or any Parity Bonds, and such default shall have continued for a period of 30 days after the District shall have been given notice in writing of such default by the Owners of 25% in aggregate principal amount of the Outstanding Bonds and Parity Bonds.

Section 8.2. Remedies of Owners. Following the occurrence of an event of default, any Owner shall have the right for the equal benefit and protection of all Owners similarly situated:
(a) By mandamus or other suit or proceeding at law or in equity to enforce his rights against the District and any of the members, officers and employees of the District, and to compel the District or any such members, officers or employees to perform and carry out their duties under the Act and their agreements with the Owners as provided in this Fiscal Agent Agreement; (b) By suit in equity to enjoin any actions or things which are unlawful or violate the rights of the Owners; or
(c) By a suit in equity to require the District and its members, officers and employees to account as the trustee of an express trust.

Nothing in this Article or in any other provision of this Fiscal Agent Agreement or in the Bonds shall affect or impair the obligation of the District, which is absolute and unconditional, to pay the interest on and principal of the Bonds to the respective Owners thereof at the respective dates of maturity, as herein provided, out of the Net Special Taxes pledged for such payment, or affect or impair the right of action, which is also absolute and unconditional, of such Owners to institute suit to enforce such payment by virtue of the contract embodied in the Bonds and in this Fiscal Agent Agreement.

The principal of the Bonds shall not be subject to acceleration hereunder.

A waiver of any default or breach of duty or contract by any Owner shall not affect any subsequent default or breach of duty or co ntract, or impair any rights or remedies on any such subsequent default or breach. No delay or omission by any Owner to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or an acquiescence therein, and every power and remedy conferred upon the Owners by the Act or by this Article may be enforced and exercised from time to time and as often as shall be deemed expedient by the Owners.
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If any suit, action or proc eeding to enforce any right or exercise any remedy is abandoned or determined adversely to the Owners, the District and the Owners shall be restored to their former positions, rights and remedies as if such suit, action or proceeding had not been brought or taken.

No remedy herein conferred upon or reserved to the Owners is intended to be exclusive of any other remedy. Every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing, at law or in equity or by statute or otherwise, and may be exercised without exhausting and without regard to any other remedy conferred by the Act or any other law.

In case the moneys held by the Fiscal Agent after an event of default pursuant to Section 8.1(a) or (b) shall be insufficient to pay in full the whole amount so owing and unpaid upon the Bonds, then all available amounts shall be applied in accordance with Section 8.3.

Nothing herein shall be deemed to authorize the Fiscal Agent to authorize or consen t to or accept or adopt on behalf of any Owner any plan of reorganization, arrangement, adjustment, or composition affecting the Bonds or the rights of any Owner thereof, or to authorize the Fiscal Agent to vote in respect of the claim of any Owner in any such proceeding without the approval of the Owners so affected.

Section 8.3. Application of Revenues and Other Funds After Default. All amounts received by the District pursuant to any right given or action taken by the Owners under the provisions of this Fiscal Agent Agreement relating to the Bonds and Parity Bonds , or already held by the Fiscal Agent hereunder, shall be applied by the District in the following order upon presentation of the Bonds and Parity Bonds:

First, to the payment of the fees, costs and expenses of the Owner in carrying out the provisions of this Article VIII, including reasonable compensation to its agents, attorneys and counsel, and to the payment of all other outstanding fees and expenses of the Owner and the Fiscal Agent; and Second, to the payment of the whole amount of interest on and principal of the Bonds then due and unpaid, with interest on overdue installments of principal and interest to the extent permitted by law at the net effective rate of interest then borne by the Outstanding Bon ds and Parity Bonds; provided, however, that in the event such amounts shall be insufficient to pay in full the full amount of such interest and principal, then such amounts shall be applied in the following order of priority:
(a) first to the payment of all installments of interest on the Bonds and Parity Bonds then due and unpaid on a pro rata basis based on the total amount then due and owing, (b) second, to the payment of all installments of principal, including Sinking Fund Payments, of the Bonds and Parity Bo nds then due and unpaid on a pro rata basis based on the total amount then due and owing, and
(c) third, to the payment of interest on overdue installments of principal and interest on the Bonds and Parity Bonds on a pro rata basis based on the total amount th en due and owing.

Section 8.4. Non-Waiver. Nothing in this Article VIII or in any other provision of this Fiscal Agent Agreement , the Bonds or the Parity Bonds, shall affect or impair the obligation of the 644

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District, which is absolute and unconditional, to pay the inte rest on and principal of the Bonds and Parity Bonds to the respective Owners of the Bonds and Parity Bonds at the respective dates of maturity, as herein provided, out of the Net Special Taxes and other moneys herein pledged for such payment.

A waiver of a ny default or breach of duty or contract by any Owners shall not affect any subsequent default or breach of duty or contract, or impair any rights or remedies on any such subsequent default or breach. No delay or omission of any Owner of any of the Bonds or Parity Bonds to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or an acquiescence therein; and every power and remedy conferred upon the Owners by the Act or by this Article VIII may be enforced and exercised from time to time and as often as shall be deemed expedient by the Owners, as the case may be.

ARTICLE IX

DEFEASANCE
Section 9.1. Defeasance. If the District shall pay or cause to be paid, or there shall otherwise be pai d, to the Owner of an Outstanding Bond the interest due thereon and the principal thereof, at the times and in the manner stipulated in this Fiscal Agent Agreement, then the Owner of such Bond shall cease to be entitled to the pledge of Net Special Taxes, and, other than as set forth below, all covenants, agreements and other obligations of the District to the Owner of such Bond under this Fiscal Agent Agreement shall thereupon cease, terminate and become void and be discharged and satisfied. In the event of a defeasance of all Outstanding Bonds and Parity Bonds pursuant to this Section, the Fiscal Agent shall execute and deliver to the District all such instrum ents as may be requested by the District, and prepared by or on behalf of the District, to evidence such discharge and satisfaction, and the Fiscal Agent shall, after payment of amounts payable to the Fiscal Agent hereunder, pay over or deliver to the District’s general fund all money or securities held by it pursuant to this Fiscal Agent Agreement which are not required for the payment of the interest due on and the principal of such Bonds and Parity Bonds.

Any Outstanding Bond shall be deemed to have been paid within the meaning expressed in the first paragraph of this section if such Bond is paid in any one or more of the following ways:
(a) by paying or causing to be paid the principal of, premium, if any, and interest on such Bond or Parity Bond, as and when the same become due and payable; (b) by depositing with the Fiscal Agent, in trust, at or before maturity, money which, together with the amounts then on deposit in the Special Tax Fund is fully sufficient to pay the principal of, premium, if any, and intere st on such Bond or Parity Bond, as and when the same shall become due and payable; or
(c) by depositing with the Fiscal Agent, or another escrow bank appointed by the District, in trust, direct, non -callable, non-prepayable Federal Securities, of the type defi ned in the definition thereof set forth in Section 1.1 hereof, in which the District may lawfully invest its money, in such amount as an Independent Financial Consultant shall determine will be sufficient, together with the interest to accrue thereon and m oneys then on deposit in the Special Tax Fund, together with the interest to accrue thereon, to pay and discharge the principal of, premium, if any, and interest on such Bond or Parity Bond, as and when the same shall become due and payable; 645

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then, at the election of the District, and notwithstanding that any Outstanding Bonds and Parity Bonds shall not have been surrendered for payment, all obligations of the District under this Fiscal Agent Agreement with respect to such Bond or Parity Bond shall cease and terminate, except for the obligation of the District to pay, reimburse, and indemnify the Fiscal Agent under Section 7.1 hereof and the obligation of the Fiscal Agent to pay or cause to be paid to the Owners of any such Bond or Parity Bond not so surrende red and paid, all sums due thereon and except for the covenants of the District contained in Section 5.2(f) relating to compliance with the Code. Notice of such election shall be filed with the Fiscal Agent not less than thirty (30) days prior to the prop osed defeasance date. In connection with a defeasance under (c) above, there shall be provided to the District and the Fiscal Agent a certificate of a certified public accountant stating its opinion as to the sufficiency of the moneys and securities deposited with the Fiscal Agent or the escrow bank to pay and discharge the principal of and interest on all Outstanding Bonds or Parity Bonds to be defeased in accordance with this Section, as and when the same shall become due and payable, and , in connection with a defeasance under (b) or (c) above, an opinion of Bond Counsel (which may rely upon the opinion of the certified public accountant) to the effect that the Bonds being defeased have been legally defeased in accordance with this Fiscal Agent Agreement and any applicable Supplemental Fiscal Agent Agreement . Upon a defeasance, the Fiscal Agent, upon request of the District, shall release the rights of the Owners of such Bonds which have been defeased under this Fiscal Agent Agreement and execute and deli ver to the District all such instruments as may be requested by the District and prepared by or on behalf of the District, to evidence such release, discharge and satisfaction. The Fiscal Agent shall, at the written direction of the District, mail, first c lass, postage prepaid, a notice to the Bondowners whose Bonds have been defeased, in the form directed by the District, stating that the defeasance has occurred.

ARTICLE X

MISCELLANEOUS
Section 10.1. Cancellation of Bonds and Parity Bonds. All Bonds and Parity Bonds surrendered to the Fiscal Agent for payment upon maturity or for redemption shall be upon payment therefor, and any Bond purchased by the District as authorized herein and delivered to the Fiscal Agent for such purpose shall be, cancelled forthwith and shall not be reissued. The Fiscal Agent shall destroy such Bonds and Parity Bonds, as provided by law, and, upon request of the District, furnish to the District a certificate of such destruction.

Section 10.2. Execution of Documents and Proof of Ownership. Any request, direction, consent, revocation of consent, or other instrument in writing required or permitted by this Fiscal Agent Agreement to be signed or executed by Bondowners may be in any number of concurrent instruments of similar tenor and may be signed or executed by suc h Owners in person or by their attorneys appointed by an instrument in writing for that purpose, or by the bank, trust company or other depository for such Bonds. Proof of the execution of any such instrument, or of any instrument appointing any such attorney, and of the ownership of Bonds or Parity Bonds shall be sufficient for the purposes of this Fiscal Agent Agreement (except as otherwise herein provided), if made in the following manner:
(a) The fact and date of the execution by any Owner or his or her at torney of any such instrument and of any instrument appointing any such attorney, may be proved by a signature guarantee of any bank or trust company located within the United States of America. Where any such instrument is executed by an officer of a cor poration or association on behalf of such corporation or 646

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association or by a member of a partnership on behalf of such partnership, such signature guarantee shall also constitute sufficient proof of his authority. (b) As to any Bond or Parity Bond, the Person in whose name the same shall be registered in the Bond Register shall be deemed and regarded as the absolute Owner thereof for all purposes, and payment of or on account of the principal of any such Bond or Parity Bond, and the interest thereon, shall be made only to or upon the order of the registered Owner thereof or his or her legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond or Parity Bond and the interest thereon to the extent of the sum or sums to be paid.

Neither the District nor the Fiscal Agent shall be affected by any notice to the contrary.

Nothing contained in this Fiscal Agent Agreement shall be construed as limiting the Fiscal Agent or the District to such proof, it bein g intended that the Fiscal Agent or the District may accept any other evidence of the matters herein stated which the Fiscal Agent or the District may deem sufficient. Any request or consent of the Owner of any Bond or Parity Bond shall bind every future Owner of the same Bond in respect of anything done or suffered to be done by the Fiscal Agent or the District in pursuance of such request or consent.

Section 10.3. Unclaimed Moneys. Anything in this Fiscal Agent Agreement to the contrary notwithstanding, any money hel d by the Fiscal Agent or the District in trust for the payment and discharge of any of the Outstanding Bonds and Parity Bonds which remain unclaimed for two years after the date when such Outstanding Bonds or Parity Bonds have become due and payable, if su ch money was held by the Fiscal Agent or the District at such date, or for two years after the date of deposit of such money if deposited with the Fiscal Agent or the District after the date when such Outstanding Bonds or Parity Bonds become due and payabl e, shall be repaid (without liability for interest) by the Fiscal Agent to the District or retained by the District, as its absolute property and free from trust, and the Fiscal Agent or the District shall thereupon be released and discharged with respect thereto and the Owners shall look only to the District for the payment of such Outstanding Bonds or Parity Bonds; provided, however, that, before being required to make any such payment to the District, the Fiscal Agent shall, upon the written request and at the expense of the District, cause to be mailed by first-class mail, postage prepaid, to the registered Owners of such Outstanding Bonds or Parity Bonds at their addresses as they appear in the Bond Register a notice that said money remains unclaimed and that, after a date named in said notice, which date shall not be less than 30 days after the date of the mailing of such notice, the balance of such money then unclaimed will be returned to the District.

Section 10.4. Provisions Constitute Contract. The provisions of this Fiscal Agent Agreement shall constitute a contract between the District and the Bondowners and the provisions hereof shall be construed in accordance with the laws of the State of California.

In case any suit, action or proceeding to enforce any right or exercise any remedy shall be brought or taken and, should said suit, action or proceeding be abandoned, or be determined adversely to the Bondowners or the Fiscal Agent, then the District, the Fiscal Agent and the Bondowners shall be restored to their former positions, rights and remedies as if such suit, action or proceeding had not been brought or taken.

After the issuance and delivery of the Bonds this Fiscal Agent Agreement shall be irrepealable, but shall be subject to modifications to the ext ent and in the manner provided in this Fiscal Agent Agreement, but to no greater extent and in no other manner. 647

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Section 10.5. Future Contracts. Nothing herein contained shall be deemed to restrict or prohibit the District from making contracts or creating bonded or oth er indebtedness payable from a pledge of the Net Special Taxes which is subordinate to the pledge hereunder, or which is payable from the general fund of the District or from taxes or any source other than the Net Special Taxes and other amounts pledged hereunder.

Section 10.6. Further Assurances. The District will adopt, make, execute and deliver any and all such further resolutions, instruments and assurances as may be reasonably necessary or proper to carry out the intention or to facilitate the performance of this Fiscal Agent Agreement, and for the better assuring and confirming unto the Owners of the Bonds or any Parity Bonds the rights and benefits provided in this Fiscal Agent Agreement.

Section 10.7. Severability. If any covenant, agreement or provision, or any portion thereof, contained in this Fiscal Agent Agreement, or the application thereof to any person or circumstance, is held to be unconstitutional, invalid or unenforceable, the remainder of this Fiscal Agent Agreement and the application of any such covenant, agreement or provision, or portion thereof, to other persons or circumstances, shall be deemed severable and shall not be affected thereby, and this Fiscal Agent Agreement and the Bonds and any Parity Bonds issued pursuant hereto shall remain valid and the Bondowners shall retain all valid rights and benefits accorded to them under the laws of the State of California.

Section 10.8. Notices. Any notices required to be given to the District with respect to the Bonds or this Fiscal Agent Agreement shall be mailed, first class, po stage prepaid, to the Director of Finance of the City of Chino at P.O. Box 667, Chino, California 91710, or personally delivered to the Director of Finance of the City of Chino at 13220 Central Avenue, Chino, California 91710, and all notices to the Fiscal Agent in its capacity as Fiscal Agent shall be mailed, first class, postage prepaid, or sent by email or other electronic transmission for which receipt can be confirmed , or personally delivered to the Fiscal Agent, The Bank of New York Mellon Trust Company, N.A., 333 South Hope Street, Suite 2525, Los Angeles, California 90071.

Section 10.9. Governing Law. This Fiscal Agent Agreement shall be governed by the laws of the State of California.
[Rest of this page Intentionally Left Blank]
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IN WITNESS WHEREOF, the District and the Fiscal Agent have executed this Fiscal Agent Agreement, effective the date first written above.

COMMUNITY FACILITIES DISTRICT NO. 2003-3

OF THE CITY OF CHINO
By:

Its: Mayor of the City of Chino on behalf of
Community Facilities District No. 2003-3 of the
City of Chino
ATTEST:

City Clerk of the City of Chino on behalf of
Community Facilities District No. 2003-3 of
the City of Chino

The terms of this Fiscal Agent Agreement relating to the Fiscal Agent are accepted by The Bank of New York Mellon Trust Company, N.A., as Fiscal Agent.

THE BANK OF NEW YORK MELLON TRUST
COMPANY, N.A., as Fiscal Agent
By:

Its: Authorized Officer
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EXHIBIT A
FORM OF COMMUNITY FACILITIES DISTRICT NO. 2003-3

OF THE CITY OF CHINO
2025 SPECIAL TAX BOND
R-__ $_________________

UNLESS THIS BOND IS PRESENTED BY AN AUTHORIZED

REPRESENTATIVE OF THE DEPOSITORY (AS DEFINED IN THE FISCAL

AGENT AGREEMENT IDENTIFIED HEREIN) TO THE FISCAL AGENT FOR

REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY BOND ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH

OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR

TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED

REPRESENTATIVE OF THE DEPOSITORY), ANY TRANSFER, PLEDGE OR

OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON

IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

UNITED STATES OF AMERICA

STATE OF CALIFORNIA

COUNTY OF SAN BERNARDINO

COMMUNITY FACILITIES DISTRICT NO. 2003-3

OF THE CITY OF CHINO
IMPROVEMENT AREA NO. 11
2025 SPECIAL TAX BOND
INTEREST RATE: MATURITY DATE: DATED DATE: CUSIP:
____% September 1, 20__ ___

REGISTERED OWNER: CEDE & CO.

PRINCIPAL AMOUNT:

AND NO/100 DOLLARS
COMMUNITY FACILITIES DISTRICT NO. 2003-3 OF THE CITY OF CHINO (the “District”), situated in the County of San Bernardino, State of California, FOR VALUE RECEIVED, hereby promises to pay, solely from certain amounts held under the Fiscal Agent Agreement (as hereinafter defined), to the Registered Owner named above, or registered assigns, on the Maturity Date set forth above, unless redeemed prior thereto as hereinafter provided, the Principal Amount set forth above, and to pay interest on such Principal Amount from the Interest Payment Date (as hereinafter defined) next preceding the date of authentication hereof, unless (i) the date of authentication is an Interest Payment Date in which event interest shall be payable from such date of authentication, (ii) the 650

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date of authentication is after a Record Date (as hereinafter defined) but prior to the immediately succeeding Interest Payment Date, in which event interest shall be payable from the Interest Payment Date immediately succeeding the d ate of authentication, or (iii) the date of authentication is prior to the close of business on the first Record Date in which event interest shall be payable from the Dated Date set forth above. Notwithstanding the foregoing, if at the time of authentica tion of this Bond interest is in default, interest on this Bond shall be payable from the last Interest Payment Date to which the interest has been paid or made available for payment or, if no interest has been paid or made available for payment, interest on this Bond shall be payable from the Dated Date set forth above.

Interest will be paid semiannually on March 1 and September 1 (each an “Interest Payment Date”), commencing March 1, 2026, at the Interest Rate set forth above, until the Principal Amount hereof is paid or made available for payment.

The principal of and premium, if any, on this Bond are payable to the Registered Owner hereof in lawful money of the United States of America upon presentation and surrender of this Bond at the Principal Office of the Fiscal Agent (as such term is defined in the Fiscal Agent Agreement), initially The Bank of New York Mellon Trust Company, N.A. (the “Fiscal Agent”). Interest on this Bond shall be paid by check of the Fiscal Agent mailed, by first class mail, pos tage prepaid, or in certain circumstances described in the Fiscal Agent Agreement by wire transfer to an account within the United States of America, to the Registered Owner hereof as of the close of business on the fifteenth day of the month preceding the month in which the Interest Payment Date occurs (the “Record Date”) at such Registered Owner’s address as it appears on the registration books maintained by the Fiscal Agent.

This Bond is one of a duly authorized issue of “Community Facilities District No . 2003-3 of the City of Chino Improvement Area No. 11 2025 Special Tax Bonds” (the “Bonds”) issued in the aggregate principal amount of $___________________________ pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, being Sections 533 11, et seq., of the California Government Code (the “Act”) for the purpose of (i) financing certain public facilities and fees , (ii) funding a reserve account, (iii) [funding the interest coming due on the Bonds on March 1, 2026] and (iv) paying certain costs related to the issuance of the Bonds. The issuance of the Bonds and the terms and conditions thereof are provided for by a resolution adopted by the City Council of the City of Chino, acting in its capacity as the legislative body of the District (the “Legislative Body”) on ______________, 2025, Resolution No. 2025-_______ (the “Resolution of Issuance ”), and a Fiscal Agent Agreement dated ________________ 1, 2025 , by and between the District and Fiscal Agent executed in connection therewith (the “Fiscal Agent Agreement”), and this reference incorporates the Fiscal Agent Agreement herein; and by acceptance hereof the Registered Owner of this Bond assents to said terms and conditions. The Resolution and the Fiscal Agent Agreement are adopted under and this Bond is issued under, and both are to be construed in accordance with, the laws of the State of California.

Pursuant to the Act and the Fiscal Agent Agreement , the principal of, premium, if any, and interest on this Bond are payable solely from the portion of the annual Special Tax A authorized under the Act to be levied and collected within Improvement Area No. 11 (the “Net Special Taxes”) and certain other amounts pledged to the repayment of the Bonds as set forth in the Fiscal Agent Agreement. Any amounts for the payment hereof shall be limited to the Net Special Taxes pledged and collected or foreclosure proceeds received following a default in payment of the Net Special Taxes and other amounts deposited to the Special Tax Fund estab lished under the Fiscal Agent Agreement, except to the extent that other provision for payment has been made by the Legislative Body, as may be permitted by law. The District has covenanted for the benefit of the owners of the Bonds that under 651

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certain circumstances described in the Fiscal Agent Agreement it will commence and diligently pursue to completion appropriate foreclosure proceedings in the event of delinquencies of Net Special Tax installments levied for payment of principal and interest on the Bonds.

The Bonds may be redeemed, at the option of the District, from any source of funds, other than Prepayments, on [any date on or after September 1, 203 3], in whole, or in part (in such amounts and maturities as may be designated by the District, with the particular Bonds of such maturities to be selected by the Fiscal Agent by lot), at the following redemption prices expressed a s a percentage of the principal amount to be redeemed, together with accrued interest to the date of redemption:

Redemption Dates Redemption Price
September 1, 2033 through August 31, 2034 103%
September 1, 2034 through August 31, 2035 102
September 1, 2035 through August 31, 2036 101
September 1, 2036 and any date thereafter 100
The Term Bonds maturing on September 1, 20__ shall be called before maturity and redeemed from the Sinking Fund Payments that have been deposited into the Principal Account, on September 1, 20__, and on each September 1 thereafter prior to maturity, in accordance with the schedule of Sinking Fund Payments set forth in the Fiscal Agent Agreement. The Term Bonds so called for redemption shall be selected by the Fiscal Agent by lot and shall be redeemed at a redemption price for each redeemed Term Bond equal to the principal amount thereof, plus accrue d interest to the redemption date, without premium.

The Term Bonds maturing on September 1, 20__ shall be called before maturity and redeemed from the Sinking Fund Payments that have been deposited into the Principal Account, on September 1, 20__, and on each September 1 thereafter prior to maturity, in accordance with the schedule of Sinking Fund Payments set forth in the Fiscal Agent Agreement. The Term Bonds so called for redemption shall be selected by the Fiscal Agent by lot and shall be redeemed at a redemption price for each redeemed Term Bond equal to the principal amount thereof, plus accrued interest to the redemption date, without premium.

The Bonds are subject to redemption as a whole, or in part on a pro rata basis among maturities, on any Interest Payment Date prior to maturity from the proceeds of the prepayment of Special Taxes deposited in the Redemption Account pursuant to the Fiscal Agent Agreement and amounts transferred from the Reserve Account in connection with such prepayment. Such extraordinary mandatory redemption of the Bonds shall be at the following redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), together with accrued interest thereon to the date of redemption:
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Redemption Dates Redemption Price
March 1, 2026 through March 1, 2034 103%
September 1, 2034 and March 1, 2035 102
September 1, 2035 and March 1, 2036 101
September 1, 2036 and any Interest Payment Date thereafter 100

In the event the District elects to redeem Bonds as provided above, the District shall give written notice to the Fiscal Agent of its election to so redeem, the redemption date and the maturity dates of the Bo nds to be redeemed. The notice to the Fiscal Agent shall be given at least 45 but no more than 60 days prior to the redemption date, or by such later date as is acceptable to the Fiscal Agent, in its sole discretion.

Notice of redemption with respect to the Bonds to be redeemed shall be mailed to the registered owners thereof not less than 30 nor more than 45 days prior to the redemption date by first class mail, postage prepaid, to the addresses set forth in the registration books. Neither a failure of the Registered Owner hereof to receive such notice nor any defect therein will affect the validity of the proceedings for redemption. All Bonds or portions thereof so called for redemption will cease to accrue interest on the specified redemption date; pro vided that funds for the redemption are on deposit with the Fiscal Agent on the redemption date. Thereafter, the registered owners of such Bonds shall have no rights except to receive payment of the redemption price upon the surrender of the Bonds.

This Bond shall be registered in the name of the Registered Owner hereof, as to both principal and interest, and the District and the Fiscal Agent may treat the Registered Owner hereof as the absolute owner for all purposes and shall not be affected by any notice to the contrary.

The Bonds are issuable only in fully registered form in the denomination of $5,000 or any integral multiple thereof and may be exchanged for a like aggregate principal amount of Bonds of other authorized denominations of the same issue and maturity, all as more fully set forth in the Fiscal Agent Agreement. This Bond is transferable by the Registered Owner hereof, in person or by his attorney duly authorized in writing, at the Principal Office of the Fiscal Agent, but only in the manner, subject to the limitations and upon payment of the charges provided in the Fiscal Agent Agreement , upon surrender and cancellation of this Bond. Upon such transfer, a new registered Bond of authorized denomination or denominations for the same aggregate principal amount of the same issue and maturity will be issued to the transferee in exchange therefor.

The Fiscal Agent shall not be required to register transfers or make exchanges of (i) any Bonds for a period of 15 days next preceding any selection of t he Bonds to be redeemed, or (ii) any Bonds chosen for redemption.

The rights and obligations of the District and of the registered owners of the Bonds may be amended at any time, and in certain cases without notice to or the consent of the registered owners, to the extent and upon the terms provided in the Fiscal Agent Agreement.

THE BONDS DO NOT CONSTITUTE OBLIGATIONS OF THE CITY OF CHINO OR OF

THE DISTRICT FOR WHICH THE CITY OF CHINO OR THE DISTRICT IS OBLIGATED TO

LEVY OR PLEDGE, OR HAS LEVIED OR PLEDGED, GENERAL OR SPECIAL TAXES, OTHER THAN THE NET SPECIAL TAXES REFERENCED HEREIN. THE BONDS ARE LIMITED

OBLIGATIONS OF THE DISTRICT PAYABLE FROM NET SPECIAL TAXES AND OTHER

AMOUNTS PLEDGED UNDER THE FISCAL AGENT AGREEMENT BUT ARE NOT A DEBT 653

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OF THE CITY OF C HINO, THE COUNTY OF SAN BERNARDINO, THE STATE OF

CALIFORNIA OR ANY OF ITS POLITICAL SUBDIVISIONS WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY LIMITATION OR RESTRICTION.

This Bond shall not become valid or obligatory for any purpose until the certi ficate of authentication and registration hereon endorsed shall have been dated and signed by the Fiscal Agent.

IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required by law to exist, happen and be performed precedent to and in the issuance of this Bond do exist, have happened and have been performed in due time, form and manner as required by law, and that the amount of this Bond, together with all other indebtedness of the District, does not exceed any debt limit prescribed by the laws or Constitution of the State of California.

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IN WITNESS WHEREOF, Community Facilities District No. 2003-3 of the City of Chino has caused this Bond to be dated as of _____, 2025, to be signed on behalf of the District by the Mayor of the City of Chino by his facsimile signature and attested by the facsimile signature of the City Clerk of the City of Chino hereon.

Mayor of the City of Chino on behalf of
Community Facilities District No. 2003-3 of the
City of Chino

ATTEST:

City Clerk of the City of Chino on behalf of
Community Facilities District No. 2003-3 of
the City of Chino

[FORM OF FISCAL AGENT’S CERTIFICATE
OF AUTHENTICATION AND REGISTRATION]
This is one of the Bonds described in the within-defined Fiscal Agent Agreement.

Dated: ______, 2025

THE BANK OF NEW YORK MELLON TRUST
COMPANY, N.A., as Fiscal Agent
By:

Its: Authorized Officer

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[FORM OF LEGAL OPINION]
The following is a true copy of the opinion rendered by Stradling Yocca Carlson & Rauth LLP in connection with the issuance of, and dated as of the date of the original delivery of, the Bonds. A signed copy is on file in my office.

City Clerk of the City of Chino on behalf of
Community Facilities District No. 2003-3 of the City
of Chino

[FORM OF ASSIGNMENT]
For value received the undersigned do(es) hereby sell, assign and transfer unto

whose tax identification number is ,
the within-mentioned registered Bond and hereby irrevocably constitute(s) and appoint(s)

attorney to transfer the same on the books of the Fiscal Agent with full power of substitution in the premises.

Dated:

Signature guaranteed:

NOTE: Signature(s) must be guaranteed by an
eligible guarantor institution.

NOTE: The signatures(s) on this Assignment
must correspond with the name(s) as written on
the face of the within Bond in every particular
without alteration or enlargement or any change
whatsoever.

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1 4905-4893-1953/022141-0060

DISTRICT CONTINUING DISCLOSURE AGREEMENT

This Continuing Disclosure Agreement (the “Disclosure Agreement”) is dated as of _______________, 2025, by and between the Community Facilities District No. 2003-3 of the City of Chino (the “District”) and Webb Municipal Finance, LLC, in its capacity as dissemination agent (the “Dissemination Agent”), in connection with the issuance by the District of its Improvement Area No. 11 2025 Special Tax Bonds in the aggregate principal amount of $______________________ (the “2025 Bonds”). The 2025 Bonds are being issued pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (Section 53311 et seq. of the California Government Code) (the “Act”), and a Fiscal Agent Agreement, dated as of ________________ 1, 2025 (the “Fiscal Agent Agreement”), by and between the District and The Bank of New York Mellon Trust Company, N.A., as fiscal agent (the “Fiscal Agent”), in order to provide funds to finance the acquisition or construction of certain public improvements to support development within Improvement Area No. 11 of the District (the “Improvement Area”). The District and the Dissemination Agent hereby c ovenant and agree as follows:

Section 1. Purpose of the Disclosure Agreement . This Disclosure Agreement is being executed and delivered by the parties hereto for the benefit of the owners and Beneficial Owners of the 2025 Bonds and in order to assist the Participating Underwriter in complying with Rule 15c2-12(b)(5) promulgated under the Securities and Exchange Act of 1934.

Section 2. Definitions. In addition to the definitions set forth in the Fiscal Agent Agreement, which apply to any capitalized terms used in this Disclosure Agreement, unless otherwise defined in this Section, the following capitalized terms shall have the following meanings:
“Annual Report” shall mean any Annual Report provided by the District pursuant to, and as described in, Sections 3 and 4 of this Disclosure Agreement. “Annual Report Date” shall mean March 31 in each year, the date that is nine months after the end of the District’s fiscal year, which fiscal year end, as of the date of this Disclosure Agreement, is June 30.
“Beneficial Owner” shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income purposes.
“Bonds” shall mean the Community Facilities District No. 2003-3 of the City of Chino Improvement Area No. 11 2025 Special Tax Bonds.
“City” shall mean the City of Chino, California.
“Dissemination Agent ” shall mean Webb Municipal Finance, LLC, or any successor Dissemination Agent designated in writing by the District, which successor must have filed a written acceptance of such designation with the District.
“District” shall mean Community Facilities District No. 2003-3 of the City of Chino. “EMMA” shall mean the Electronic Municipal Market Access system of the MSRB. 657
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“Improvement Area” shall mean Improvement Area No. 11 of the District. “Listed Events ” shall mean any of the events listed in Section 5(a) of this Disclosure Agreement.
“MSRB” shall mean the Municipal Securities Rulemaking Board and any successor entity designated under the Rule as the repository for filings made pursuant to the Rule. “Official Statement” shall mean the Official Statement relating to the 2025 Bonds. “Participating Underwriter ” shall mean Raymond James & Associates, Incorporated, as original purchaser of the 2025 Bonds.
“Rule” shall mean Rule 15c2 -12(b)(5), adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. “Special Taxes” shall mean an annual special tax to be levied on certain real property within the Improvement Area, which special tax shall secure the payment of debt service on the 2025 Bonds.

Section 3. Provisions of Annual Reports.
(a) The District shall, or shall cause the Dissemination Agent to, not later than the Annual Report Date, commencing March 31, 2026, provide to MSRB an Annual Report that is consistent with the requirements of Section 4 of this Disclosure Agreement ; provided, however, that the first Annual Report shall consist of the Official Statement only. Not later than 15 business days prior to said date, the District shall provide its Annual Report to the D issemination Agent, if such Dissemination Agent is a different entity than the District. The Annual Report must be submitted in an electronic format as prescribed by MSRB, accompanied by such identifying information as is prescribed by MSRB, and may include by reference other information as provided in Section 4 of this Disclosure Agreement; provided that the audited financial statements of the District, if any are prepared, may be submitted separately from and later than the balance of the Annual Report i f they are not available by the applicable Annual Report Date. If the District’s fiscal year changes, the District shall provide written notice of such change in the same manner as for a Listed Event under Section 5(c). The District shall provide written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished hereunder. The Dissemination Agent may conclusively rely upon such certification of th e District and shall have no duty or obligation to review such Annual Report. The Official Statement and the District’s audited financial statements, if any are prepared, will serve as the first Annual Report. (b) If the District is unable to provide MSR B an Annual Report by the date required in subsection (a), the Dissemination Agent in a timely manner shall send a notice to MSRB in substantially the form attached as Exhibit A. Such notice must be submitted in an electronic format as prescribed by MSRB, accompanied by such identifying information as prescribed by MSRB. (c) The Dissemination Agent shall:

1. provide any Annual Report received by it to MSRB by the date required in subsection (a); and
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2. file a report with the District certifying that the An nual Report has been provided to MSRB pursuant to this Disclosure Agreement and stating the date it was so provided.

Section 4. Content of Annual Reports . The District’s Annual Report shall contain or incorporate by reference the following:
(a) Financial Statements. The audited financial statements of the District for the most recent fiscal year of the District then ended, when and if available, if any are prepared for the District.

If no audited financial statements are prepared for the District, then no financial statements shall be included in the Annual Report. If the audited financial statements are prepared but not available by the time the Annual Report is required to be filed, the Annual Report may be filed without audited financial statements, and the audited financial statements shall be filed in the same manner as the Annual Report if and when they become available. If audited financial statements of the District are prepared, such audited financial statements shall be audited by such auditor as shall then be required or permitted by State law or the Fiscal Agent Agreement. If audited financial statements of the District are prepared, such audited financial statements shall be prepared in accordance with generally accepted accounting principles as prescribed for governmental units by the Governmental Accounting Standards Board; provided, however, that the District may from time to time, if required by federal or state legal requirements, modify the basis upon which its financial statements are prepared. In the event that the District shall modify the basis upon which its financial statements are prepared, the District shall provide a notice of such modification to EMMA, including a reference to the specific federal or State law or regulation specifically describing the legal requirements for the change in accounting basis. (b) Financial and Operating Data . The following information with respect to the 2025 Bonds and the property in the District subject to the levy of Special Taxes:

1. Principal amount of the 2025 Bonds (including principal amount and years of maturity of Bonds, if any, called for redemption in advance of maturity), and any bonds issued to refund the same.

2. Balance in the funds and accounts established under the Fiscal Agent Agreement.

3. A statement as to whether or not the amount on deposit in the Reserve Account of the Special Tax Fund is equal to the Reserve Requirement and, if not, the amount of the delinquency or surplus, as applicable.

4. If any moneys are still on deposit in the Facilities Account of the Improvement Fund, the estimated date of completion of the improvements being financed with the 2025 Bonds proceeds and a statement regarding the sufficiency of the moneys still on deposit in the Improvement Fund to complete such improvements.

5. The amount of delinquent Special Taxes for the most recent fiscal year.

6. Concerning delinquent parcels:
∙ number of parcels in the Improvement Area delinquent in payment of Special Tax,
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∙ total of such delinquency and percentage of delinquency in relation to total Special Tax levy,
∙ status of the actions taken by the City or the District related to any foreclosure proceedings upon delinquent properties within the Improvement Area.

7. Identity of any delinquent taxpayer obligated for greater than five percent (5%) of the annual Special Tax levy, plus:
∙ assessed value of applicable properties, and
∙ summary of results of foreclosure sales, if available.

8. Until buildout of the Improvement Area, provide the number of building permits within the Improvement Area.

9. A table in the form of table 4 and reasonably representing the information contained therein, reflecting top property owners responsible for 5% or greater of the annual Special Tax most recently enrolled, the allocation of current outstanding debt for each property owner and the allocable Assigned Special Tax.

10. A table in the form of table 5 and reasonably representing the information contained therein, reflecting the stratification of value -to-lien ratios within the I mprovement Area based on the allocation of current outstanding debt for each property and the current assessed value for each property.

Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the District, the City, or related public entities that are available to the public on MSRB’s internet website or filed with the Securities and Exchange Commission. The District shall clearly identify each such other document so included by reference.

Section 5. Reporting of Significant Events.
(a) Pursuant to the provisions of this Section 5, the District shall give, or cause the Dissemination Agent to give, notice of the occurrence of any of the following events with respect to the 2025 Bonds in a timely manner not more than ten (10) business days after the event:

1. principal and interest payment delinquencies;

2. unscheduled draws on debt service reserves reflecting financial difficulties;

3. unscheduled draws on credit enhancements reflecting financial difficulties;

4. substitution of credit or liquidity providers, or their failure to perform;

5. adverse tax opinions or the issuance by the Internal Revenue Service of proposed or final determinations of taxability or of a Notice of Proposed Issue (IRS Form 5701-TEB);
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6. tender offers;

7. defeasances;

8. ratings changes;

9. bankruptcy, insolvency, receivership or similar proceedings; Note: for the purposes of the event identified in subparagraph (9), the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governmental body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person; and

10. default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the obligated person, any of which reflect financial difficulties.
(b) Pursuant to the provisions of this Section 5, the District shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the 2025 Bonds, if material:

1. unless described in paragraph 5(a)(5) above, notices or determinations by the Internal Revenue Service with respect to the tax status of the 2025 Bonds or other material events affecting the tax status of the 2025 Bonds;

2. the consummation of a merger, consolidation or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms;

3. appointment of a successor or additional fiscal agent or the change of the name of a fiscal agent;

4. nonpayment related defaults;

5. modifications to the rights of Owners of the 2025 Bonds;

6. notices of redemption;

7. release, substitution or sale of property securing repayment of the 2025 Bonds; and

8. incurrence of a financial obligation of the obligated person, or ag reement to covenants, events of default, remedies, priority rights, or other similar terms of 661
6 4905-4893-1953/022141-0060
a financial obligation of the obligated person, any of which reflect financial difficulties.
(c) Upon the occurrence of a Listed Event under Section 5(b) above, the District shall as soon as possible determine if such event would be material under applicable federal securities laws. (d) If the District determines that knowledge of the occurrence of a Listed Event under Section 5(b) would be material under applicable federal securities laws, the District shall file a notice of such occurrence with MSRB in a timely manner not more than 10 business days after the event. (e) The District hereby agrees that the undertaking set forth in this Disclosure Agreement is the re sponsibility of the District and that the Dissemination Agent shall not be responsible for determining whether the District’s instructions to the Dissemination Agent under this Section 5 comply with the requirements of the Rule.
(f) For purposes of the eve nts identified in subparagraphs (a)(10) and (b)(8) under this Section 5, the term “financial obligation” means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term financial obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule and a continuing disclosure undertaking has been entered into.

Section 6. Termination of Reporting Obligation . The obligations of the District and the Dissemination Agent under this Disclosure Agreement shall terminate upon the legal defeasance, prior redemption, or payment in full of all of the 2025 Bonds. If such termination occurs prior to the final maturity of the 2025 Bonds, the District shall give notice of such termination in the same manner as for a Listed Event under Section 5(c).

Section 7. Dissemination Agent. The District may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Agreement, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent may resign by providing 30 days written notice to the District. The Dissemination Agent shall not be responsible for the content of any report or notice prepared by the District. The Dissemination Agent shall have no duty to prepare any information report nor shall the Dissemination Agent be responsible for filing any report not provided to it by the District in a timely manner and in a form suitable for filing. If at any time there is no designated Dissemination Agent, the District shall act as the Dissemination Agent.

Section 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Agreement, the District and the Dissemination Agent may amend this Disclosure Agreement, and any provision of this Disclosure Agreement may be waived; provided that the following conditions are satisfied:
(a) if the amendment or waiver relates to annual or event information to be provided hereunder, it may only be made in connection with a change in circumstances that arises from a change in legal (including regulatory) requirements, a change in law (including rules or regulations) or interpretations thereof, or a change in the identity, nature, or status of the District or the type of business conducted thereby;
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(b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel have complied with the requirements of the Rule at the time of the primary offering of the 2025 Bonds, after taking into account any a mendments or interpretations of the Rule, as well as any change in circumstances; and (c) the proposed amendment or waiver (i) is approved by owners of the 2025 Bonds in the manner provided in the Fiscal Agent Agreement for amendments to such Fiscal Agent Agreement with the consent of owners of the 2025 Bonds, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interest of the owners of the 2025 Bonds.

If the annual financial information or operating data to be prov ided in the Annual Report is amended pursuant to the provisions hereof, the annual financial information containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided.

If an amendment is made to the undertaking specifying the accounting principles to be followed in preparing financial statements, the annual financial information for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles.

The comparison shall include a q ualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information, in order to provide information to investors to enable them to evaluate the ab ility of the District to meet its obligations. To the extent reasonably feasible, the comparison shall be quantitative.

A notice of the change in the accounting principles shall be sent to the MSRB.

Section 9. Additional Information . Nothing in this Dis closure Agreement shall be deemed to prevent the District from disseminating any other information, using the means of dissemination set forth in this Disclosure Agreement or any other means of communication, or including any other information in any Annua l Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Agreement. If the District chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that w hich is specifically required by this Disclosure Agreement, the District shall have no obligation under this Disclosure Agreement to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.

The District acknowledges and understands that other state and federal laws, including but not limited to the Securities Act of 1933 and Rule 10b -5 promulgated under the Securities Exchange Act of 1934, as amended may apply to the District, and that under some circumsta nces compliance with this Disclosure Agreement, without additional disclosures or other action, may not fully discharge all duties and obligations of the District under such laws.

Section 10. Default. In the event of a failure of the District to comply with any provisions of this Disclosure Agreement any owner of a Bond, the Participating Underwriter, or the Fiscal Agent may (but in no event is obligated to or has a duty to) take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the District to comply with its obligations under this Disclosure Agreement. A default under this Disclosure Agreement shall not be deemed a default under the Fiscal Agent Agreement, and the sole remedy under this Disclosure Agreement in the event of any failure of the District or the Dissemination Agent to comply with this Disclosure Agreement shall be an action to compel performance. 663
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Section 11. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Agreement, and the District agrees to indemnify and save the Dissemination Agent and its officers, directors, employees and agents, harmless against any loss, expense, cost, suit, claim, judgment, damages and liabilities that it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys’ fees and expenses) of defending a gainst any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. The obligations of the District under this section shall survive resignation or removal of the Dissemination Agent and payment of a ll of the 2025 Bonds. The Dissemination Agent shall not be responsible in any manner for the format or content of any notice or Annual Report prepared by the District pursuant to this Disclosure Agreement. The District shall pay the reasonable fees and expenses of the Dissemination Agent for its duties hereunder.

Section 12. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the City, the District, the Dissemination Agent, the Fiscal Agent, the Participating Underwriter, and the owners from time to time of the 2025 Bonds, and shall create no rights in any other person or entity.

Section 13. Counterparts. This Disclosure Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.

Section 14. Future Determination of Obligated Persons . In the event the Securities Exchange Commission amends, clarifies or supplements the Rule in such a manner that requires any landowner within the Improvem ent Area to be an obligated person as defined in the Rule, nothing contained herein shall be construed to require the District to meet the continuing disclosure requirements of the Rule with respect to such obligated person and nothing in this Disclosure Agreement shall be deemed to obligate the District to disclose information concerning any owner of land within the Improvement Area except as required as part of the information required to be disclosed by the District pursuant to Section 4 and Section 5 hereof. The validity, interpretation and performance of this Disclosure Agreement shall be governed by the laws of the State of California.

Section 15. Severability. In case any one or more of the provisions contained herein shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof.

Section 16. Merger. Any person succeeding to all or substantially all of the Dissemination Agent’s corporate trust business shall be the successor Dissemination Agent without the filing of any paper or any further act.

Section 17. Governing Law. This Disclosure Agreement shall be governed under the laws of the state of California.

COMMUNITY FACILITIES DISTRICT NO. 2003-3

OF THE CITY OF CHINO
By:
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Authorized Signatory

WEBB MUNICIPAL FINANCE, LLC
as Dissemination Agent
By:

Authorized Signatory

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EXHIBIT A TO CONTINUING DISCLOSURE AGREEMENT

NOTICE TO MSRB OF FAILURE TO FILE ANNUAL REPORT
Name of Issuer: Community Facilities District No. 2003-3 of the City of Chino Name of Bond Issue: $______________________ Community Facilities District No. 2003-3 of the City of Chino, Improvement Area No. 11 2025 Special Tax Bonds NOTICE IS HEREBY GIVEN that Community Facilities District No. 2003-3 of the City of Chino (the “District”) has not provided an Annual Report with respect to the above -named Bonds as required by the Continuing Disclosure Agreement, dated as of ________________ 1, 2025 . The District anticipates that the Annual Report will be filed by __________.

Dated: ____________
COMMUNITY FACILITIES DISTRICT NO. 2003-3

OF THE CITY OF CHINO
By:

Authorized Signatory
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MEMORANDUM

CITY OF CHINO

HUMAN RESOURCES DEPARTMENT

CITY COUNCIL MEETING DATE: NOVEMBER 18, 2025

TO: LINDA REICH, CITY MANAGER
FROM: TERRY DOYLE, DIRECTOR OF HUMAN RESOURCES/RISK MANAGEMENT

SUBJECT
..titl e
Adjustments in Compensation for Affected Members of the City of Chino. ..end

RECOMMENDATION
..recommendation
1) Adopt Resolution Nos. 2025 -088 and 2025 -089 approving the Compensation and Benefit Plans for Executive Management and Unrepresented Sworn Management; 2) Adopt Resolution No. 2025 -078 to amend the Classification Plan and Compensation Schedule for Executi ve Management; and 3) Approve appropriation in the amount of $27,534 to the various funds detailed in the fiscal impact section of the staff report. ..body

FISCAL IMPACT
Requires an appropriation from the funds listed below, for an estimated total of $27,534. There are enough reserves of fund balance in FY 2025 -26, in each of the funds mentioned. Detailed cost out information is on file in the Finance Department.

General Fund 100 $19,120 Sewer Fund 530 $695
State COPS Fund 130 $0 Storm Drain 540 $533
Housing Fund 310 $200 Sanitation Fund 550 $580
Transportation Fund 320 $0 Central Svcs. Fund 610 $300
Community Svcs Fund 330 $2,128 Liab. & Risk Fund 630 $1,373 Park Fund 340 $0 Employee Svcs Fund 640 $1,073
Landscape Lighting Fund 360 $0 Building Mgmt Fund 650 $300 Assessment District Fund 361 $0 Equipment Mgmt Fund 660 $418 Water Fund 520 $814 Grand Total $27,534

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
 Responsible Long-Range Planning

667
CITY COUNCIL MEETING DATE: NOVEMBER 18, 2025
TITLE: ADJUSTMENTS IN COMPENSATION FOR AFFECTED MEMBERS OF THE CITY OF CHINO.

PAGE: 2

Revenue:

Expenditure: Various
Transfer In: Transfer Out:
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CITY COUNCIL MEETING DATE: NOVEMBER 18, 2025
TITLE: ADJUSTMENTS IN COMPENSATION FOR AFFECTED MEMBERS OF THE CITY OF CHINO.

PAGE: 3

BACKGROUND
On November 4, 2025, the City Council approved a three percent (3%) cost-of-living adjustment wage increase (COLA) for several employee groups, including the Chino Police Professional Employees Association (CPPEA) and Chino City Hall Confidential Employee Association (CCHCEA), effective July 21, 2025.

In addition, the City Council approved a three percent (3%) COLA for the Chino Police Managers Association (CPMA) and Chino Police Officers Association (CPOA) based on the results of a Total Compensation Surv ey, effective the beginning of the pay period that includes July 1, 2025. In accordance with the Compensation and Benefit Plan for Unrepresented Sworn Management, the Chief of Police is entitled to receive the same COLA as members of CPMA.

To demonstrate t he City’s dedication to retaining experienced and high -performing personnel, the City Council directed staff to adjust the effective date of the three percent (3%) COLA for CPPEA, CCHCEA, and the Teamsters Local 1932 Professional, Technical, and Clerical U nit (Teamsters PTC Unit) to the beginning of the pay period that includes July 1, 2025. City representatives have met with the affected bargaining groups, and the parties have tentatively agreed to the revised effective date.

To reinforce the City’s commit ment to maintaining competitive and equitable compensation practices, the City Council also directed staff to issue a one -time, non-pensionable Retention Pay to Executive Management. Additionally, a three percent (3%) COLA for Executive Management employees will take effect beginning with the first pay period following City Council approval, which is November 24, 2025.

Unrepresented Sworn Management (including the Chief of Police) will receive a 3% COLA effective the beginning of the pay period that includ es July 1, 2025, which is the same as members of CPMA. The 3% COLA for Unrepresented Sworn Management was previously approved by the City Council on November 4, 2025 under Resolution No. 2025-075.

ISSUES/ANALYSIS
Pursuant to Government Code Sections 5326 2, 54953(c)(3), and 54956(b), updates to executive compensation must be publicly presented and read during a City Council meeting.

These updates are outlined in the attached resolutions and exhibits.

If approved, Resolution No. 2025-088 will:
 Authorize a o ne-time, non -pensionable Retention Pay for Executive Management;
 Authorize a 3% COLA for Executive Management, effective the beginning of the pay period after City Council approval, which is November 24, 2025; and  Authorize a 3% COLA for Executive Manageme nt, effective the beginning of the pay period that includes July 1, 2026.

Resolution No. 2025 -089 introduces new, single, comprehensive Compensation and Benefit Plan that incorporates all prior and current changes to the compensation and benefits for Unrepresented Sworn Management. The 3% COLA for Unrepresented Sworn Management has not changed and is included in the updated Compensation and Benefit Plan.

If approved, Resolution No. 2025 -078 will provide an updated Classification Plan and Compensation Schedule for Executive Management. The Classification Plan and Compensation Schedule for Unrepresented Sworn Management was previously approved by the City Council 669
CITY COUNCIL MEETING DATE: NOVEMBER 18, 2025
TITLE: ADJUSTMENTS IN COMPENSATION FOR AFFECTED MEMBERS OF THE CITY OF CHINO.

PAGE: 4

on November 4, 2025 under Resolution No. 2025 -068. The Classification Plan and Compensation Schedule for Executive Management must also be adopted and approved by the City Council in order to comply with Title 2, Section 570.5, of the California Code of Regulations.

Attachments: 1) Resolution No. 2025 -088 Compensation and Benefit Plan for Executive Management; 2) Resolution No. 2025 -089 Compensation and Benefit Plan for Unrepresented Sworn Management; 3) Resolution No. 2025 -078 Classification Plan and Compensation Schedule for Executive Management

670

RESOLUTION NO. 2025-088

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

CALIFORNIA, APPROVING THE AMENDED AND RESTATED

COMPENSATION AND BENEFITS FOR EXECUTIVE MANAGEMENT
EMPLOYEES EFFECTIVE NOVEMBER 18, 2025

WHEREAS, Section 36506 of the California Government Code requires the City Council of the City of Chino to fix the compensation for all employees through a resolution or ordinance; and

WHEREAS, the City Council of the City of Chino previously adopted resolutions establishing compensation and benefits for Executive Management Employees with the most recent being Resolution No. 2025-073; and
WHEREAS, it is the City Council’s desire to clearly and comprehensively repeal all prior resolutions affecting compensation and benefits for Executive Management Employees and replace them entirely with a new, single, comprehensive document that incorporates all prior and current changes including updated compensation and benefits.

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

SECTION 1 . The foregoing recitals are true and correct and are incorporated herein by this reference.

SECTION 2. Resolution No. 2025-073 and all prior compensation and benefits resolutions adopted by City Council are hereby rescinded and replaced by this Resolution 2025-088, which approves amended and restated compensation and benefits for Executive Management Employees. In the event of conflict between this Resolution and any prior City Council resolution relating to the subject matter of this Resolution No. 2025-088, this Resolution shall supersede and prevail over the prior resolution to the extent of the conflict. To the extent this Resolution No. 2025-088 provides benefits in excess or is different from the benefits provided in any prior City Council resolution, the provisions of this Resolution shall control.

SECTION 3. The City Council hereby approves and adopts the amended and restated Compensation and Benefit Plan for Executive Management Employees, which is attached hereto as Exhibit A.

SECTION 4. The City Clerk shall certify the adoption of this Resolution as of November 18, 2025, with an effective date of November 24, 2025.

APPROVED AND ADOPTED THIS 18th day of November, 2025.

EUNICE M. ULLOA, MAYOR

ATTEST:

NATALIE GONZAGA

CITY CLERK

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RESOLUTION NO. 2025-088

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ATTACHMENT:

EXHIBIT A. Compensation and Benefit Plan for Executive Management Employees

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RESOLUTION NO. 2025-088

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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 Resolution was duly adopted by the City Council at a regular meeting held on the 18th day of November 2025 by the following votes:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

NATALIE GONZAGA, CITY CLERK

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Exhibit A

COMPENSATION AND BENEFIT PLAN

FOR EXECUTIVE MANAGEMENT EMPLOYEES

EXECUTIVE MANAGEMENT EMPLOYEES:

The Executive Management Employee group (Employee or Employees) shall be comprised of the following classifications and positions employed by the City of Chino (City):

City Manager
Assistant City Manager
Director of Community Services, Parks & Recreation
Director of Development Services
Director of Finance
Director of Human Resources/Risk Management
Director of Public Works

BASE COMPENSATION:

In addition to the two percent (2%) cost-of-living adjustment wage increase (COLA) previously provided to all Executive Management Employees through City Council Resolution No. 2025- 039, adopted on July 15, 2025 and made effective July 21, 2025, all Executive Management Employees shall be provided an additional one percent (1%) COLA wage increase effective the pay period beginning on November 24, 2025, as reflected in the updated Classification Plan and Compensation Schedule set forth below:

Classification Title Range Base Midpoint MaximumHourly 92.41$ 108.58$ 127.58$ Monthly 16,017.25$ 18,820.33$ 22,113.83$ Annually192,207.00$ 225,844.00$ 265,366.00$ Hourly 172.41$ Monthly 29,883.75$ Annually358,605.00$ City Treasurer N/A Monthly 500.00$ Hourly 85.81$ 100.83$ 118.47$ Monthly 14,873.67$ 17,476.50$ 20,534.92$ Annually178,484.00$ 209,718.00$ 246,419.00$ Hourly 85.81$ 100.83$ 118.47$ Monthly 14,873.67$ 17,476.50$ 20,534.92$ Annually178,484.00$ 209,718.00$ 246,419.00$ Hourly 85.81$ 100.83$ 118.47$ Monthly 14,873.67$ 17,476.50$ 20,534.92$ Annually178,484.00$ 209,718.00$ 246,419.00$ Hourly 85.81$ 100.83$ 118.47$ Monthly 14,873.67$ 17,476.50$ 20,534.92$ Annually178,484.00$ 209,718.00$ 246,419.00$ Hourly 85.81$ 100.83$ 118.47$ Monthly 14,873.67$ 17,476.50$ 20,534.92$ Annually178,484.00$ 209,718.00$ 246,419.00$ Assistant City Manager E11
Director of Public Works E8
City Manager 1000Director of Community Services, Parks & RecreationE8Director of Development ServicesE8Director of Finance E8Director of Human Resources/Risk ManagementE8 674

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Effective the beginning of the pay period that includes July 1, 2026, the Classification Plan and Compensation Schedule for Executive Management Employees shall reflect a three percent (3%) COLA as follows:

CITY TREASURER:

The Director of Finance shall receive five hundred dollars ($500) per month for being appointed as the City Treasurer.

RETENTION PAY:

All Executive Management Employees still employed by the City as of November 24, 2025 shall receive a one-time, lump sum retention payment in the amount of 0.90% of their annual base pay, as Off-Salary-Schedule Pay per section 571(a) of Title 2 of the California Code of Regulations, to be issued through Payroll and subject to applicable taxes and withholdings, and shall not be considered earnable or pensionable compensation under the California Public Employees’ Retirement System.

DIRECT DEPOSIT:

All Employees will have funds directly deposited into an account they established for deposit of their payroll checks.

LONGEVITY PAY:

Classification Title Range Base Midpoint Maximum
Hourly 95.17$ 111.83$ 131.40$
Monthly 16,497.75$ 19,384.92$ 22,777.25$
Annually 197,973.00$ 232,619.00$ 273,327.00$
Hourly 177.58$
Monthly 30,780.25$
Annually 369,363.00$
City Treasurer N/A Monthly 500.00$
Hourly 88.38$ 103.85$ 122.03$
Monthly 15,319.92$ 18,000.83$ 21,151.00$
Annually 183,839.00$ 216,010.00$ 253,812.00$
Hourly 88.38$ 103.85$ 122.03$
Monthly 15,319.92$ 18,000.83$ 21,151.00$
Annually 183,839.00$ 216,010.00$ 253,812.00$
Hourly 88.38$ 103.85$ 122.03$
Monthly 15,319.92$ 18,000.83$ 21,151.00$
Annually 183,839.00$ 216,010.00$ 253,812.00$
Hourly 88.38$ 103.85$ 122.03$
Monthly 15,319.92$ 18,000.83$ 21,151.00$
Annually 183,839.00$ 216,010.00$ 253,812.00$
Hourly 88.38$ 103.85$ 122.03$
Monthly 15,319.92$ 18,000.83$ 21,151.00$
Annually 183,839.00$ 216,010.00$ 253,812.00$
Assistant City Manager E11
Director of Public Works E8
Director of Finance E8
Director of Human
Resources/Risk
Management
E8
Director of Community
Services, Parks & Recreation
E8
Director of Development
Services
E8
City Manager 1000
675

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 30 years of service - $2,500 paid in a lump sum at time of anniversary.  35 years of service - $3,000 paid in a lump sum at time of anniversary.  40 years of service - $3,500 paid in a lump sum at time of anniversary.  45 years of service - $4,000 paid in a lump sum at time of anniversary.

ACTING PAY:

The City will grant Acting Pay after an Employee has worked in a higher classification for twenty (20) consecutive work days or for twenty (20) non-consecutive work days in a ninety (90) calendar day period. To receive Acting Pay, an Employee must be formally assigned the duties of the higher classification. This assignment must be confirmed by the processing of a Personnel Action Form (PAF). Acting Pay will be five percent (5%) above the Employee’s current base salary rate or “A” Step of the Acting position Classification, whichever is greater, unless otherwise authorized by the City Manager.

Subject to the conditions noted above, a qualifying Employee will receive Acting Pay for all days worked in an Acting position, i.e., after twenty (20) consecutive work days or twenty (20) non- consecutive work days in a ninety (90) calendar day period. The Employee will then receive Acting Pay retroactive to the first day of serving in the acting capacity.

ADDITIONAL DUTY PAY:

Afforded to an Employee who takes on a significant number of extra assignments in an area different than their regularly assigned responsibilities. An Employee performing this type of work for a period of time greater than two (2) weeks may be afforded a percentage increase in salary to compensate for performing dual functions at the discretion of the City Manager.

BILINGUAL PAY:

Employees are eligible to receive one hundred and sixty dollars ($160) per month (paid over 24 pay periods) for verbal fluency in any language other than English that the City Manager deems necessary including sign language, under the following conditions:

a. Certification: A competency examination will be administered by the Human Resources/Risk Management Department to determine Employees’ proficiency. Testing and its frequency are at the discretion of the City. An Employee must pass the City’s competency examination to be eligible for Bilingual Pay. b. City Manager Approval: To be eligible to take the City’s competency examination, an Employee must be recommended by the City Manager. Eligibility for the opportunity to test for Bilingual Pay is solely at the City Manager’s discretion and is not subject to administrative appeal or challenge. The City Manager will make their recommendation based on an assessment of the need for the Employee to use bilingual skills on-the-job. If an Employee is approved for Bilingual Pay, then later changes assignment, classification, job duties, or is transferred or promoted, a determination may be made by the City Manager that bilingual skills are no longer required for use on-the-job and this benefit will be removed from the Employee with no right of appeal.

DEFERRED COMPENSATION PLAN:

A deferred compensation plan is available to all Employees, providing tax-deferred savings to serve as a retirement supplement. An Employee may contribute to the City's designated deferred compensation plan up to the maximum annual amount allowed by federal and state law through a payroll deduction program.

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Department Director and Assistant City Manager – The City-paid contribution to deferred compensation is seven hundred dollars ($700) per month. The contribution will be placed in a deferred compensation account, 401(a), selected by the City.

To the extent allowed by federal and state law and the City's deferred compensation plan administrator, the City will allow, during the three (3) years prior to an Employee's planned retirement date, the conversion of accrued Sick, Vacation, Floating Holiday, Sick Leave Conversion, Management Leave hours to cash contribution at the Employee's base rate of pay in effect at the time of conversion. Leave conversion contributions for the “457 Catch-up” shall normally be distributed over an Employee's last three (3) years prior to their planned retirement date. However, based on the total amount of “457 Catch-up” contributions available to the Employee, accumulated sick leave hours, and the Employee's designated retirement date, “457 Catch-up” contributions may occur over a shorter period of time prior to retirement. To be eligible to participate, the Employee must be within three (3) years of their planned retirement date, have "457 Catch-up" privileges available to them, be enrolled in the City-sponsored 457 Deferred Compensation Plan.

“Catch-up” – Sick Leave
Employees are not entitled to 100% cash-out of Sick Leave until completion of five (5) years of service with the City as the final employer and either a qualified service or disability retirement. The City will advance Employees 47 years of age or older a cash-out of their accrued Sick Leave up to the indexed amount if they choose to utilize the “Catch Up” provision provided through the City’s 457 plan.

In the event an Employee separates for any reason other than service or disability retirement from the City prior to being eligible to receive 100% Sick Leave pay, said Employee will be required to reimburse the excess amount of Sick Leave previously paid out. The reimbursement will be deducted by the City from any or all earned funds available to the Employee on separation, without it being necessary for the City to seek a civil judgment for the monies.

In order to participate, the Employee will select the amount of Sick Leave they want transferred into deferred compensation at the beginning of each of the three (3) years. The amount can be a selected number of hours or a percentage of Sick Leave remaining at the end of the year. The Employee’s Sick Leave balance would then decrease commensurately with the amount of funds withdrawn.

The Employee will continue to accrue Sick Leave hours at the normal rate while participating in this program. “Catch-up” hours advanced will be counted towards to the Employee’s Sick Leave bank for the Sick Leave Program calculation.

“Catch-up”– Vacation Leave
In order to participate, the Employee will select the amount of Vacation Leave they want transferred into deferred compensation at the beginning of each of the three (3) years. The amount can be a selected number of hours or a percentage of Vacation Leave remaining at the end of the year. The Employee’s Vacation Leave balance would then decrease commensurately with the amount of funds withdrawn.
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The Employee maintaining their Vacation Leave maximum would still be eligible for Vacation Leave incentives, such as Vacation Leave Conversion. The Employee will continue to accrue Vacation Leave hours at the normal rate while participating in this program.

“Catch-up”– Other Leave Banks
In order to participate, the Employee will select the amount of other leave (this may be Floating Holiday, Sick Leave Conversion and/or Management Leave) to be transferred into deferred compensation at the beginning of each of the three (3) years. The amount must be a selected number of hours of leave. The Employee’s leave balance would then decrease commensurately with the amount of funds withdrawn.

Employees may use accrued Sick, Floating Holiday, Sick Leave Conversion, Management and/or accrued Vacation Leave contribute this additional amount.

Defined Contribution Plan - 401(A):

This plan, offered in addition to the existing 457 Deferred Compensation Plan, allows Employees to defer additional income (beyond what is allowed in the 457 Plan) as a means of accumulating greater savings for retirement. Participation is voluntary. Employees who elect to enroll in the 401(a) Plan contribute pre-tax contributions in one of the established amounts: 1% - 20% inclusive, 25%, or 100%. The City contributes $1 per pay period per participating Employee. An Employee’s election to enroll in the 401(a) Plan is irrevocable. Loans are permitted.

Contributions to the deferred compensation plan will be discontinued while an Employee is receiving Workers’ Compensation payments.

ANNUAL PHYSICAL/WELLNESS:

Up to one thousand, two hundred dollars ($1,200) may be provided to Employees each fiscal year for reimbursement toward the cost of gym membership, an annual physical, or related out-of- pocket medical expenses as approved by the City Manager. Employees must submit an invoice from the medical provider or proof of gym membership to receive reimbursement.

BENEFIT BANK:

Employees are provided with a Benefit Bank for the purchase of medical, dental and/or vision insurance for themselves and their eligible dependents. The Benefit Bank total will be equal to the premium cost of HMO medical (at the Kaiser rate), dental and vision coverage for family coverage.

The Benefit Bank amount will be adjusted annually when new rates become effective December 1st. Unused portions of the Benefit Bank will be paid out in the Employee’s regular paychecks as earned.

Any Employee opting out of health coverage will be required to submit an affidavit attesting that they have other qualifying group health coverage and provide supporting documentation. For example, a letter from the employer of a spouse, domestic partner, or parent.

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New Hires:

Failure to provide the required documentation within sixty (60) days of hire may result in the City enrolling the Employee in the lowest cost medical plan. Such enrollment will remain in effect until the Employee provides valid opt-out documentation during the next Open Enrollment period.

Recertification:

Failure to provide the required documentation during the annual Open Enrollment period may result in the City enrolling the Employee in lowest cost medical plan. Such enrollment will remain in effect until the Employee provides valid opt-out documentation during the next open enrollment period.

BEREAVEMENT LEAVE:

A non-accruing bank of five (5) days (50 hours) for bereavement of a qualified family member is provided. A “qualified family member” is defined as spouse, domestic partner, parent, step-parent, sibling, child, step-child, mother-in-law, father-in-law, brother-in-law, sister-in-law, daughter-in- law, son-in-law, grandparent, step-grandparent, grandchild, or any other relative residing within the Employee’s home.

The five (5) days of bereavement leave do not need to be taken consecutively; they can be used intermittently. If the leave is used intermittently, it must be used within three (3) months of the qualified family member’s date of death.

The Employee within thirty (30) days of the first day of the leave shall provide documentation of the death of the qualified family member, if requested by the City Manager. Documentation may include, but is not limited to a death certificate, a published obituary, a written verification of a death, burial or memorial services from a mortuary, funeral home, burial society, crematorium, religious institution, or governmental agency.

COMPUTER LOAN PROGRAM:

All executive Employees are eligible to participate in a Computer Loan Program managed by the Finance Department. Participants must agree to comply with the requirements of the program as listed below:
 Maximum amount financed is two thousand, five hundred dollars ($2,500).  Any computer system may be purchased under the plan as long as it complies with Administrative Policy Employee PC Lottery Loan Program.  Minimum of one (1) business software package must be purchased (i.e. spreadsheet, data base manager, word processor, etc.).
 System components must be manufactured by an established, brand name company and be compatible with City data processing equipment. For example, Dell, HP, etc.  No game or entertainment software will qualify under this program.  Loans to participants will be for a term not to exceed thirty-six months (36) and no interest will be charged during that time.
 Payments on the loan will be made through payroll deduction on a bi-weekly basis.  Loans are due and payable in full upon termination of employment for any reason. (i.e. resignation, retirement, etc.).
 The City must approve in advance all purchases for equipment under this program.  A written agreement between the City and participant is required to participate in this program.

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The City intends to offer this program on an annual basis, but the Plan’s continued availability will be dependent upon its effectiveness and availability of funds. Should limitations on funds occur, participants buying new systems will be given first consideration and then a lottery for any participants upgrading their current system will be held.

DEATH BENEFIT:

Employees are provided with $250,000 in life insurance coverage, payable to beneficiary on file in Human Resources/Risk Management at time of death.

In the event of an Employee’s death, their beneficiary will receive payment of all unused Leave Time at 100% except Sick Leave. Sick Leave Time will be paid out at the rate established by years of service. If the Employee would have been eligible for retirement using CalPERS definition, Sick Leave will be paid out to the Employee’s beneficiary(ies) at 100% cash out of the Employee’s accrued Sick Leave on record.

In the event of an Employee death, and such death is defined by the Workers’ Compensation system as an industrial death, the Employee’s beneficiary(ies) will receive 100% cash-out of the Employee’s accrued Sick Leave on record.

DISABILITY:

The City will pay all premiums for a Short/Long Term Disability Program and provide it to all Employees, with a buy-down program to be effective on the 41st calendar day of disability, with a provision to continue regular benefits and benefit accruals during the “buy-down” and Term Disability coverage periods. Salary continuation effective on the 41st consecutive calendar day of disability will be at a rate of 100% of the Employee’s base salary. Effective on the 61st consecutive calendar day of disability, salary continuation will be made at a rate of 66-2/3% of the Employee’s base salary. The entire benefit period will not exceed five (5) years.

FLEXIBLE BENEFITS SPENDING PLAN:

A Section 125 – Flexible Benefits Spending Plan is available for Employee contributions in accordance with IRS regulations.

FLOATING HOLIDAY TIME:

Employees are provided with thirty-five (35) hours of Floating Holiday Time in July of each year (prorated for new hires following completion of six (6) months of full-time/continuous service).

This time off is used by the Employee with the approval of the City Manager.

Employees may cash-out up to thirty-five (35) hours of Floating Holiday Time, one (1) time per fiscal year, in a set number of hours, payable at the Employee’s existing base rate of pay at the time of request. Payment will be made with the regular payroll check run nearest the request of the cash-out (requires minimum of ten (10) working days prior to request). Any remaining Floating Holiday Time will be paid out in the final payroll check of each fiscal year.

Except for Employees retiring from the City, Employees resigning/separating from employment will have Floating Holiday Time credited on a prorated basis (2.916 hours per month), and amounts used/cashed out in excess of those they qualify for are owed back to the City upon separation. The difference will be deducted from the Employee’s final check(s), or in the event that sufficient funds are not available, the Employee will be responsible to pay back the City within fourteen (14) calendar days from the date of separation.

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HOLIDAYS:

The City has designated twelve (12) ten-hour holidays as follows:

New Year’s Day Martin Luther King
Presidents Day Memorial Day
Independence Day Labor Day
Veterans Day Thanksgiving Day
Day following Thanksgiving Christmas Eve
Christmas Day New Year’s Eve

Employees must be paid for the regularly scheduled workday which immediately follows a holiday in order to receive pay for that holiday. When a holiday falls on a Saturday, the preceding Friday will be the holiday. When a holiday falls on a Sunday, the following Monday will be the holiday.

HOLIDAY CLOSURE:

The City reserves the right to close non-safety facilities between Christmas Eve and New Year's Day. Employees may use accrued Vacation, Floating Holidays, Compensatory Time, Sick Leave Conversion or remain in an unpaid leave status during this period.

The City shall have the discretion to advance Vacation time, which will be earned by the Employee in the future, to those Employees who request it and who do not have any current Vacation, Floating Holiday, Compensatory Time, or Sick Leave Conversion and do not wish to be in an unpaid leave status during the closure.

Based on the organizational needs, certain classifications may be required to work during the holiday closure. This determination will be made by the Department Director.

HOLIDAY TIME COMPENSATION BANK:

When a City-designated holiday is observed on an Employee’s scheduled day off, then said holiday hours will be deposited within a holiday time compensation bank. Any holiday hours remaining in the holiday time compensation bank by the end of the fiscal year will be converted to cash at the Employee’s current hourly rate.

Should the Employee separate from City employment (for any reason) and has one (1) or more accumulated holidays on account on the effective date of the separation, the accumulated holiday will be converted to cash at the hourly rate existing at the time of separation and in an amount equivalent to the number of hours constituting a “workday” at the time of separation.

JURY DUTY:

The policy of the City is no Employee will be compensated for jury service in excess of ten (10) working days during any fiscal year. A “working day” will be defined as a regularly scheduled day of work for the affected Employee.

For all jury service, Employees are required to deliver a jury duty certification form at the end of the required jury duty to verify such service. Employees required to serve on a jury must report to work before and after jury duty provided there is an opportunity for at least one (1) hour of actual work time.

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LICENSING RENEWAL FEE FOR REGISTERED ENGINEERS:

The City will pay the Employee cost of the renewal fee for Registration as a Professional Engineer in the State of California. If the Employee who has been provided with fee payment resigns prior to the expiration of the license, the fee must be refunded to the City.

LIFE INSURANCE:

Employees are provided with a total of $250,000 in life insurance coverage.

See also Death Benefits section in the Compensation and Benefit Plan.

MANAGEMENT LEAVE:

Employees are provided with ninety (90) Management Leave hours in the first pay period of July of each fiscal year. Management Leave is non-accruing and will not be carried from one fiscal year to the next. Newly hired management Employees or current Employees promoted into management will receive a prorated management leave benefit.

Time taken as management leave must be pre-approved by the City Manager prior to its use.

Employees may cash out up to seventy (70) hours of Management Leave per fiscal year at their current base rate of pay at any time throughout the fiscal year by making notification of request to cash out to the Finance Department. Any unused Management Leave on record at the ending date of the final payroll in June will be cashed out, up to seventy (70) hours maximum. Any remaining Management Leave at that time will be removed from the Employee’s leave bank.

Up to an additional sixty (60) hours of Management Leave may be granted by the City Manager with a corresponding ability to cash out these hours for any Employee who demonstrates committing an extraordinary amount of time beyond their normal work schedule to the job.

Except for Employees retiring from the City, Employees resigning/separating from employment will have Management Leave credited on a prorated basis (7.5 hours per month), and amounts used/cashed out in excess of those they qualify for are owed back to the City upon separation. The difference will be deducted from the Employee’s final check(s), or in the event that sufficient funds are not available, the Employee will be responsible to pay back the City within fourteen (14) calendar days from the date of separation.

MEDICARE CONTRIBUTION:

The City will pay the cost of the Employee portion of the Medicare Tax.

MILITARY LEAVE:

Under certain conditions, Employees ordered to active duty may receive wage continuation and benefits for up to one year. Cost-of-living adjustments will be received and leave accruals will continue during the first year of ordered active duty.

PERFORMANCE EVALUATION:

Employees will receive an annual performance evaluation and consideration of a salary adjustment within the Merit Zone and the Outstanding Zone established by the date of hire. Salary adjustments will be based on individual performance and contribution.

PERSONNEL FILE (RESPONSE TO DOCUMENTS PLACED WITHIN):

Employees, during City Hall business hours, with advance notice to Human Resources have the right to have access to and copies of any document in their official personnel file. Employees may 682

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be charged for cost of duplication of any materials in the personnel file for which they request copies.

An Employee shall have the right to respond in writing to adverse documents placed in their personnel file by submitting a written response to the Human Resources/Risk Management Department. The written response will be filed with the original document.

PROFESSIONAL MEMBERSHIP DUES AND RELATED MEALS:

Each fiscal year, the City shall reimburse each Department Director for dues and for related meeting attendance meals for one (1) of the following organizations:
 Chino Valley Lions Club
 Rotary Club of Chino Valley
 Kiwanis Club of Chino
 Soroptimists Chino Valley

RECRUITMENT INCENTIVES:

For recommendation resulting in Sworn Officer hire:
 $2,000 at hire + $500 upon completion of probation for entry level.  $4,000 at hire + $1,000 upon completion of probation for lateral.

For recommendation resulting in hire of Public Safety Dispatcher or Public Safety Dispatch Supervisor:
 $2,000 at hire + $500 at time of completion of probation.

NOTE: The City Manager and Director of Human Resources/Risk Management are not eligible for this benefit.

REHIRE POLICY:

Any Employee who resigns from City employment and at the time of resignation is noted as being subject to rehire, and who is in fact rehired later than six (6) months after the effective date of resignation and then employed in their former classification, or in a position within the classification series held at the time of resignation and in a comparable or lower rank, will serve the same probationary period that any new hire would otherwise serve and will be subject to all terms and conditions of employment applicable to any newly hired Employee. The only exception will be that any Employee rehired will have their leave accrual rates determined based upon the number of years of service with the City of Chino prior to their resignation.

Any Employee rehired by the City under the City’s Rehire Policy will be allowed to buy back any time cashed out at time of separation from employment. Said buy back will be at the hourly base pay rate existing upon rehire. Sick Leave on record at the time of separation that was not compensated for, will be reinstated.

RETIREMENT:

The City has a three-tier retirement benefit as follows:

A. Employees hired before the contract amendment with the California Public Employees’ Retirement System (CalPERS) effective October 16, 2011 will continue to be eligible for the 2.7% at age 55 Plan, with the single highest year final compensation.

B. Employees hired on or after the contract amendment with CalPERS effective October 16, 2011 will be enrolled in the 2% at age 55 Plan, with a 3-year average final compensation.

C. Employees hired on or after January 1, 2013, will be enrolled in the 2% at age 62 (PEPRA) Plan, with a 3-year average final compensation.
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Member Contribution to CalPERS
Members will contribute the Employee rate of contributions each payroll. All Employee paid contributions to CalPERS will be made on a pre-tax basis, in accordance with IRS Section 414 (h)(2) and CalPERS guidelines:

A. 2.7% at 55, if hired before October 16, 2011:
1) Employee contribution rate – 8% of reportable compensation.

B. 2% at 55, if hired on or after October 16, 2011:
1) Employee contribution rate – 7% of reportable compensation.

C. 2% at age 62 (Public Employees' Pension Reform Act of 2013) (PEPRA) if entering CalPERS membership on or after January 1, 2013:
1) Employee contribution rate – 7.25% of reportable compensation (subject to change).

RETIREMENT HEALTH SAVINGS (RHS) PLAN:

Department Director and Assistant City Manager
A Retirement Health Savings Plan is established in accordance with IRS regulations, consisting of Employee contributions only.

Beginning January 1, 2021, Employee will contribute $25 per pay period on a pre-tax basis. Upon separation or retirement, Employees will contribute 50% of all qualifying accrued Sick Leave to the plan.

SALARY ADJUSTMENTS (Overpayments, Recovery, and Underpayments):

All adjustments to an Employee’s salary will be made at the start of the pay period in which the salary adjustment becomes effective.

A. Overpayments

1. In situations involving overpayment to an Employee by the City, the Employee shall be obliged to repay by payroll deduction the amount of the overpayment. The repayment shall occur within the same time frame the overpayment was received by the Employee or sooner. For example, if the overpayment was made over the course of six (6) months, the employe shall be given six (6) months to repay the overpayment.

2. Written documentation showing the calculations of the overpayment will be provided to the Employee. A meeting may be requested by the Employee with the Human Resources/Risk Management and Finance Departments to review the documentation and to discuss the recovery schedule. The repayment schedule, biweekly repayment amount or alternative repayment method will be documented in writing.

3. Extensions to the period for repayment of the overage or an alternative repayment method may be requested by the Employee and are subject to the Approval of the Director of Human Resources/Risk Management or their designee. Extensions will be approved only in the case of extreme hardship, and the extended period for repayment will not be longer than one and one-half (1 ½) times as long as the overpayment period.

B. Recovery

1. If the Employee leaves employment prior to the repayment of the overage, the City shall recover the amount owed from the Employee’s final pay. If the amount owed is greater than the Employee’s final pay, the City may initiate a collections process against the Employee.
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C. Underpayments

1. In situations involving underpayment to an Employee by the City, the Employee shall receive the balance due within the next pay period for which the adjustment can be made, following timely submission of appropriate documentation and necessary approval of the compensation change.

SEPARATION FROM CITY:

At the discretion and approval of the City Manager, Employees may be allowed to extend their last day of employment using leave time (vacation, holiday, or management) one (1) pay period beyond that day on which the Employee actually reports to work. Sick leave may not be used for extension unless accompanied by a physician’s orders.

SEVERANCE:

Should the City Manager elect to terminate employment without cause, the City shall, upon effective date of such termination, and with signature on Waiver and Release Agreement pay to the Employee, severance in the amount equal to four (4) months of base monthly salary, less applicable deductions and excluding deferred compensation or the value of any other benefits.

SICK LEAVE:

Upon hire, Employees will be credited with thirty (30) hours or three (3) days of Sick Leave, whichever is greater, which can be used following the completion of ninety (90) days of continuous full-time employment. Following the 90th day of employment, for each calendar month in which the Employee is paid for more than two-thirds (2/3) of the working days in such month, Employees accrue ten (10) hours of Sick Leave per month up to a maximum accrual of one thousand eighty hours (1,080) hours.

If an Employee changes status (e.g. changes from full-time to part-time employment), or separates from this Employee unit, the Employee will be subject to the new bargaining group’s MOU or Compensation and Benefit Plan.

Upon notice of resignation or retirement from the City, any Sick Leave usage requested will require a doctor’s note or certification. If documentation is not received, the Employee will not receive payment of any Sick Leave hours for time missed from work.

SICK LEAVE BUY BACK:

At separation of employment the City may buy back a percentage of the Employee’s accrued Sick Leave hours, at the hourly base rate of pay at the time of separation. This benefit is contingent upon non-retirement, non-disciplinary separation, and completion of a minimum of five (5) years full-time employment with the City. The percentage of Sick Leave Buy Back is:

Completed Years of Service % of Sick Leave
5 years 30%
10 years 35%
15 years 40%
20 or more years 45%

The City shall buy back 100% of the Employee’s accrued Sick Leave hours for a service or disability retirement following five (5) years of full-time employment with the City as the final 685

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employer. The percentages may be adjusted in accordance with the Retirement Health Savings Plan elections and provisions for affected individuals, per IRS regulations.

SICK LEAVE CONVERSION TO COMPENSATION:

Employees who have accrued in excess of three hundred and twenty (320) hours of Sick Leave as of the final pay period in June of each year will have the option of annually converting up to forty (40) hours to compensation, for hours in excess of three hundred and twenty (320) hours, calculated at their base rate of pay. Sick Leave Conversion is paid in the final payroll check of each fiscal year.

SICK LEAVE CONVERSION TO PERSONAL LEAVE:

For Employees who have earned Sick Leave accrual benefits for one (1) full fiscal year, Sick Leave may be converted to Personal Leave in accordance with the following schedule:

A
Sick Leave
Days (10 hours)
Earned
B
Annual Sick
Leave Days
(10 hours) Used
C
Personal Leave
Days (8 hours)
Conversion
D
Up to 56 hours of Sick
Leave in excess of 960
hours limit Converted to
Pay
12 days (120 hrs) 0 8 days (64 hrs) 0 + 64 + 56 = 120 hrs 11 days (110 hrs) 1 day (10 hrs) 7 days (56 hrs) 10 + 56 + 54 = 120 hrs 10 days (100 hrs) 2 days (20 hrs) 6 days (48 hrs) 20 + 48 + 52 = 120 hrs 9 days (90 hrs) 3 days (30 hrs) 5 days (40 hrs) 30 + 40 + 50 = 120 hrs 8 days (80 hrs) 4 days (40 hrs) 4 days (32 hrs) 40 + 32 + 48 = 120 hrs 7 days (70 hrs) 5 days (50 hrs) 3 days (24 hrs) 50 + 24 + 46 = 120 hrs 6 days (60 hrs) 6 days (60 hrs) 2 days (16 hrs) 60 + 16 + 44 = 120 hrs

Personal Leave may not be carried from one fiscal year to the next. Converted Personal Leave that is not used will be credited to Sick Leave at the end of a fiscal year if credited hours do not exceed the one thousand eighty (1,080) hours Sick Leave limit.

SICK LEAVE HIRING INCENTIVE:

New Employees may be eligible to be credited with up to two hundred (200) hours of Sick Leave from their prior employer so long as the prior employer did not compensate the Employee for these Sick Leave hours at the amount proposed or greater. New Employees will be required to provide proof that the sick leave hours were not cashed out by presenting their last pay stub or written verification from their prior employer’s Payroll Division.

SICK LEAVE PROGRAM:

Employees having in excess of nine hundred and sixty (960) hours of accumulated Sick Leave on the last pay period in June will be paid in the final paycheck of the fiscal year, an amount computed at the then existing hourly rate for each hour in excess of nine hundred and sixty (960) hours, up to a maximum of fifty-six (56) hours.

TUITION ADVANCE PROGRAM:

Employees who desire to enroll in an accredited college/university degree program or professional development course, are eligible for tuition advancement up to a maximum of three thousand, five hundred dollars ($3,500) per fiscal year. A Tuition Advancement Form must be received by the Human Resources/Risk Management Department for review and approval before and advance will 686

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be provided. Budgeted funds must be available to cover tuition advance and no expenditure beyond the approved budget allocation will be authorized to cover any amount of any Employee’s educational expenses.

Affected Employees are required to complete one (1) year of service with the City from the date of completion of course work to be eligible for this benefit. Individuals voluntarily separating from the City prior to completion of one (1) year of service with the City from date of completion of course work will be required to reimburse the City for funds advanced to them under this program.

Said reimbursement shall be deducted from any separation check to be distributed to the Employee, no matter what the nature of the funds, without the necessity of a judgement being mandated on behalf of the City.

A college or university shall be defined as an institution accredited by the Western Association of Schools and Colleges Senior College and University Commission (WASC), the Accrediting Commission of Community and Junior Colleges (ACCJC), Northwest Commission on Colleges and Universities (NWCCU), Southern Association of Colleges and Schools Commission on Colleges (SACSCOC), Middle State Commission on Higher Education (MSCHE), New England Association of Colleges and Schools (NEASC) or an institution listed on the Higher Learning Commission (HLC). Other accreditations may be eligible upon review by the Human Resources Department.

Advanceable expenses will include books, tuition, parking and registration/enrollment fees. All required fees such as health-related fees, “gym” fees and other miscellaneous fees, whether billed as “tuition” or otherwise required of the institution are eligible. Items such as paper, pens, notebooks, and printing fees will not be eligible.

Employees agree that upon accepting a tuition advance from the City, the Employee is responsible to provide the City with verification of completion of class(es), grade(s) and receipts for expenses within sixty (60) calendar days from the date of final course work (as indicated on the request for tuition advance form submitted by the Employee). If the educational institution attended does not provide the Employee with verification of completion or grades or receipts within this sixty (60) calendar days timeframe, the Employee is responsible to notify the Director of Human Resources/Risk Management, in writing, of such and an additional sixty (60) calendar days extension will be granted. In the event that an Employee does not provide verification of completion of class(es), grade(s) and receipts for expenses at the end of either the initial sixty (60) calendar days or at the end of the extension of an additional sixty (60) calendar days (to 120 calendar days total), the City will have the right to automatically make a payroll deduction from the Employee’s next regular payroll check in an amount equal to the amount of tuition funds advanced.

TUITION REIMBURSEMENT – ENHANCED PROGRAM:

Employees who have incurred otherwise reimbursable tuition cost in an amount greater than the maximum amount available shall be eligible to receive additional reimbursement to the extent that tuition reimbursement funds are available at the end of each fiscal year. No such distribution will be made until the conclusion of the fiscal year to verify the number of Employees making application for the enhanced benefit. Employees must submit a tuition reimbursement invoice to the Human Resources/Risk Management Department no later than May 1st of each year to participate in this Enhanced Program.

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It shall remain the individual Employee’s responsibility to apply for and receive written authorization to participate in a tuition reimbursable course prior to any such enrollment.

VACATION LEAVE:

Maximum accrual of Vacation is four hundred (400) hours. Upon termination of employment, accrued Vacation will be paid at the Employee’s then existing hourly rate of pay. New Employees with less than six (6) months of City service are ineligible to receive Vacation Leave buy back. It is the responsibility of Employees to schedule Vacation time off for rest and recuperation in order that earned Vacation time in excess of four hundred (400) hours will not be removed from the records.

Months of Completed Service Annual Vacation Accrual
6 – 24 12 days p/year (10.0000 hours p/month)
25 – 48 15 days p/year (12.5000 hours p/month)
49 – 108 18 days p/year (15.0000 hours p/month)
109 – 120 19 days p/year (15.8333 hours p/month)
121+ 20 days p/year (16.6666 hours p/month)

Vacation leave will be taken at a time approved by the City Manager with due regard for the wishes of the Employee and particular regard for the needs of the City. Unless otherwise provided by Department rules, Employees must submit vacation requests to their supervisor at least seven (7) calendar days prior to the intended start of vacation. No person will be permitted to work for compensation for the City during his/her vacation except with prior approval of the City Manager or designated representative. If one or more City holidays fall within an annual vacation leave, the holidays will not be charged as vacation leave; however, extension of the vacation leave for the period of such holiday(s) is subject to approval of the City Manager.

A temporary increase in the total Vacation hours accrued (in excess of 400 hours) may be approved by the City Manager and notification to the Finance Department to affect this temporary exception.

Newly hired Department Directors are eligible to accrue vacation hours based on their years of service in prior public agencies. Newly hired Department Directors will be required to provide documentation from their prior employer(s) or retirement system such as CalPERS, SBCERA, LACERA, etc. verifying their years of service.

The City Manager can authorize newly hired Department Directors up to one hundred and twenty (120) Vacation hours to be available immediately upon hire.

VACATION LEAVE BUY BACK:

At separation or retirement, 100% of accrued Vacation Leave, to a maximum of four hundred (400) hours, will be paid at the Employee’s existing base rate of pay. New Employees with less than six (6) months of service are ineligible to receive Vacation Leave Buy Back. The percentages may be adjusted in accordance with the Retirement Health Savings Plan elections and provisions for affected individuals, per IRS regulations.

VACATION LEAVE CONVERSION:

Employees may convert a maximum of one hundred and twenty (120) hours of Vacation Leave to pay per fiscal year. Employees may convert leave to pay in April and/or November of each year, calculated at the Employee’s hourly base rate of pay at the time of conversion. Six (6) months 688

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prior to date of conversion, half* the number of accrued leave hours requested, excluding Sick Leave, must have been taken as time off.

*This usage requirement is waived for “active” military personnel.

VEHICLE ALLOWANCE:

Employees not assigned a City vehicle will be provided with five hundred dollars ($500) per month for vehicle allowance.

WORKERS’ COMPENSATION PROGRAM:

Whenever any Employee of the City is disabled whether temporarily or permanently by injury or illness arising out of, and in the course of, his/her duties the Employee will be compensated as follows: On the first, second, and third day of the injury Employees will use accrued Sick, Vacation, Floating Holiday and/or Management Leave for full salary continuance.

Commencing the fourth day of the injury, the City will continue the Employee’s salary at a rate of 66-2/3% of the current monthly salary, less any applicable deductions (i.e., credit union, health insurance coverage), for a period not to exceed twelve (12) months. If the disability extends for a period beyond fourteen (14) calendar days the City will credit the Employee for the first three (3) days of Sick Leave used. If hospitalization is required the first, second, and third days salary is paid by the City through the Workers’ Compensation program.

WORKERS’ COMPENSATION PREMIUM PAYMENT:

In the event of a work-related illness or injury, which results in a permanent disability settlement, the City will provide a 10% premium benefit payment provided the following occurs:
 That the Workers’ Compensation Appeals Board approves the total settlement, including the 10% premium benefit.
 That neither a “Notice of Claim” nor “Application for Adjudication of claim” will have been filed or served against the City of Chino.
 That the injured Employee has diligently sought medical attention as prescribed by the treating physician(s) approved by the City.
 That the injured Employee and the City have employed the guidance of the State Department of Industrial Relations Office of Information and Assistance to resolve any outstanding issues or misunderstandings.

Representation is a legal right recognized by statutory law. Nothing precludes an Employee from retaining legal counsel or representation; however, the premium benefit offered is only available in cases handled without the involvement of legal counsel. This is done in recognition of the cost savings that result in non-litigated cases that can be passed on to the ill or injured worker.

SAVINGS CLAUSE:

Should any clause in this Compensation and Benefit Plan be held invalid by law and/or by a court of competent jurisdiction, then only that clause will be stricken and the remainder of the Compensation and Benefit Plan will remain in full force and effect.

IMPLEMENTATION:

These compensation and benefits are subject to consideration and approval by the City Manager of the City of Chino and will only be implemented upon adoption by the City Council.

689
RESOLUTION NO. 2025-089

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

CALIFORNIA, APPROVING THE AMENDED AND RESTATED

COMPENSATION AND BENEFITS FOR UNREPRESENTED SWORN
MANAGEMENT EMPLOYEES EFFECTIVE NOVEMBER 18, 2025

WHEREAS, Section 36506 of the California Government Code requires the City Council of the City of Chino to fix the compensation for all employees through a resolution or ordinance; and

WHEREAS, the City Council of the City of Chino previously adopted resolutions establishing compensation and benefits for Unrepresented Sworn Management Employees , with the most recent being Resolution No. 2025-075; and
WHEREAS, it is the City Council’s desire to cl early and comprehensively repeal all prior resolutions affecting compensation and benefits for Unrepresented Sworn Management Employees and replace them entirely with a new, single, comprehensive document that incorporates all prior and current changes including updated compensation and benefits.

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

SECTION 1 . The foregoing recitals are true and correct and are incorporated herein by this reference.

SECTION 2. Resolution No. 2025-075 and all prior compensation and benefits resolutions adopted by City Council are hereby rescinded and replaced by this Resolution 2025-089, which approves amended and restated compensation and benefits for Unrepresented Sworn Management Employees. In the event of conflict between this Resolution 2025-089 and any prior City Council resolution relating to the subject matter of this Resolution No. 2025-089, this Resolution shall supersede and prevail over the prior resolution to the extent of the conflict. To the extent this Resolution No. 2025-089 provides benefits in excess or is different from the benefits provided in any prior City Council resolution, the provisions of this Resolution shall control.

SECTION 3. The City Council hereby approves and adopts the amended and restated Compensation and Benefit Plan for Unrepresented Sworn Management Employees, which is attached hereto as Exhibit A.

SECTION 4. The City Clerk shall certify the adoption of this Resolution effective November 18, 2025, with an effective date of November 24, 2025.

APPROVED AND ADOPTED THIS 18th day of November, 2025.

EUNICE M. ULLOA, MAYOR

ATTEST:

NATALIE GONZAGA

CITY CLERK

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RESOLUTION NO. 2025-089

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ATTACHMENT:

EXHIBIT A. Compensation and Benefit Plan for Unrepresented Sworn Management

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RESOLUTION NO. 2025-089

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

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

NATALIE GONZAGA, CITY CLERK
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Exhibit A

COMPENSATION AND BENEFIT PLAN

FOR UNREPRESENTED SWORN MANAGEMENT EMPLOYEES

UNREPRESENTED SWORN MANAGEMENT EMPLOYEES:

The Unrepresented Sworn Management Employee group (Employee or Employees) shall be comprised of the following classifications and positions employed by the City of Chino (City):

Chief of Police
Captain
Deputy Chief of Police

BASE COMPENSATION:

All Unrepresented Sworn Management Employees shall be provided an three percent (3%) cost- of-living adjustment wage increase (COLA) effective the beginning of the pay period that includes July 1, 2025, as reflected in the updated Classification Plan and Compensation Schedule set forth below:

In the event the City authorizes a general salary increase, cost-of-living adjustment (COLA), or other across-the-board base salary increase for Employees represented by the Chino Police Managers Association (CPMA), the same percentage salary adjustment shall be applied concurrently to all classifications within the Unrepresented Sworn Management group, including Captain, Deputy Chief of Police, and Chief of Police.

DIRECT DEPOSIT:

All Employees will have funds directly deposited into an account they established for deposit of their payroll checks.

LONGEVITY PAY:

Employees are eligible for longevity pay as a one-time lump sum payout as follows:
 10 years of service - $500 paid in a lump sum at time of anniversary.  15 years of service - $1,000 paid in a lump sum at time of anniversary.  20 years of service - $1,500 paid in a lump sum at time of anniversary.  25 years of service - $2,000 paid in a lump sum at time of anniversary.  30 years of service - $2,500 paid in a lump sum at time of anniversary.  35 years of service - $3,000 paid in a lump sum at time of anniversary.  40 years of service - $3,500 paid in a lump sum at time of anniversary.

Classification Title Range Base Midpoint MaximumHourly 88.81$ 97.69$ 106.56$ Monthly 15,393.33$ 16,933.17$ 18,471.00$ Annually 184,720.00$ 203,198.00$ 221,652.00$ Hourly 103.61$ 121.74$ 139.88$ Monthly 17,959.08$ 21,101.58$ 24,246.17$ Annually 215,509.00$ 253,219.00$ 290,954.00$ Hourly 93.24$ 102.57$ 111.90$ Monthly 16,161.75$ 17,778.83$ 19,395.92$ Annually 193,941.00$ 213,346.00$ 232,751.00$ Captain 4020Chief of Police 1400Deputy Chief of Police 4000 693

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 45 years of service - $4,000 paid in a lump sum at time of anniversary.

ACTING PAY:

The City will grant Acting after an Employee has worked in a higher classification for twenty (20) consecutive work days or twenty (20) non-consecutive work days in a ninety (90) calendar day period. To receive Acting Pay, an Employee must be formally assigned the duties of the higher classification. This assignment must be confirmed by the processing of a Personnel Action Form (PAF). Acting Pay will be five percent (5%) above the Employee’s current base salary rate or Step “A” of the Acting position Classification, whichever is greater, or otherwise, as determined by the City Manager

Subject to the conditions noted above, qualifying Employees will receive Acting Pay for all days worked in an Acting position, i.e., after twenty (20) consecutive work days or twenty (20) non- consecutive work days in a ninety (90) calendar day period. The Employee will receive Acting Pay retroactive to the first day of serving in the acting capacity.

ADDITIONAL DUTY PAY:

ADDITIONAL LEAVE:

Deputy Chief of Police and Captain – In addition to Management Leave, affected Employees may be provided up to thirty (30) additional hours of leave, at the Police Chief’s discretion, per fiscal year based on workload and hours worked. These hours will be cashed out if they are not used by the last pay period of the fiscal year.

ANNUAL PHYSICAL/WELLNESS:

Chief of Police – Up to one thousand, two hundred dollars ($1,200) may be provided to Employees for reimbursement toward the cost of gym membership, an annual physical, or related out-of- pocket medical expenses. Employees must submit an invoice from the medical provider or proof of gym membership to receive reimbursement.

BENEFIT BANK:

The Benefit Bank amount will be adjusted annually when new rates become effective December 1st. Unused portions of the Benefit Bank will be paid out in the Employee’s regular paychecks as earned.

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New Hires:

Recertification:

BEREAVEMENT LEAVE:

A non-accruing bank of five (5) days (50 hours) for bereavement of a qualified, immediate family member is provided.

A “qualified immediate family member” is defined as spouse, domestic partner, parent, parent- in-law, step-parent, sibling, child, step-child, sibling-in-law, daughter/son-in-law, grandparent, grandchild, or any other relative residing within the Employee’s home.

The Employee within thirty (30) days of the first day of the leave shall provide documentation of the death of the qualified family member, if requested by the Department Head. Documentation may include, but is not limited to a death certificate, a published obituary, a written verification of a death, burial or memorial services from a mortuary, funeral home, burial society, crematorium, religious institution, or governmental agency.

BILINGUAL PAY:

Employees are eligible to receive an allowance (paid over 24 pay periods) for verbal fluency in any language other than English, under the following conditions:

a. Certification: A competency examination will be administered by the Human Resources/Risk Management Department to determine Employees’ proficiency. Testing and its frequency are at the discretion of the City. An Employee must pass the City’s competency examination to be eligible for Bilingual Pay. b. Approval: To be eligible to take the City’s competency examination, an Employee must be recommended by the Chief of Police (Approver). Eligibility for the opportunity to test for Bilingual Pay is solely at the Approver’s discretion and is not subject to administrative appeal or challenge. The Approver will make their recommendation based on an assessment of the need for the Employee to use bilingual skills on-the-job. If an Employee is approved for Bilingual Pay, then later changes assignment, classification, job duties, or is transferred or promoted, a determination may be made by the Approver that bilingual skills are no longer required for use on-the-job and this benefit will be removed from the Employee with no right of appeal.

Chief of Police – Eligible to receive a one hundred and sixty dollar ($160) allowance per month (paid over 24 pay periods) for verbal fluency in any language other than English that the City Manager deems necessary, including sign language.
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Deputy Chief of Police and Captain – Eligible to receive a two hundred and forty dollar ($240) allowance per month (paid over 24 pay periods) for verbal fluency in any language other than English that the Chief of Police deems necessary, including sign language.

COMPUTER LOAN PROGRAM:

Non-probationary Employees are eligible to participate in a Computer Loan Program managed by the Finance Department. Participants must agree to comply with the requirements of the program as listed below:
 Maximum amount financed is two thousand, five hundred dollars ($2,500).  Any computer system may be purchased under the plan as long as it complies with Administrative Policy Employee PC Lottery Loan Program.  Minimum of one (1) business software package must be purchased (i.e. spreadsheet, data base manager, word processor, etc.).
 System components must be manufactured by an established, brand name company and be compatible with City data processing equipment. For example, Dell, HP, etc.  No game or entertainment software will qualify under this program.  Loans to participants will be for a term not to exceed thirty-six months (36) and no interest will be charged during that time.
 Payments on the loan will be made through payroll deduction on a bi-weekly basis.  Loans are due and payable in full upon termination of employment for any reason. (i.e. resignation, retirement, etc.).
 The City must approve in advance all purchases for equipment under this program.  A written agreement between the City and participant is required to participate in this program.

DEATH BENEFIT:

Chief of Police – Employee is provided with $250,000 in life insurance coverage, payable to beneficiary on file in the Human Resources/Risk Management at time of death.

Deputy Chief of Police and Captain – Employees are provided with $100,000 in life insurance coverage, payable to beneficiary on file in the Human Resources/Risk Management at time of death.

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DEFERRED COMPENSATION PLAN:

A deferred compensation plan, 457(b), is available to all Employees, providing tax-deferred savings to serve as a retirement supplement. An Employee may contribute to the City's designated deferred compensation plan up to the maximum annual amount allowed by federal and state law through a payroll deduction program.

City Contribution
Chief of Police – A contribution of seven hundred dollars ($700) per month is made into the City’s selected plan, 401(a), for the Employee. Loans are permitted.

Deputy Chief of Police and Captain – A contribution of four hundred and ten dollars ($410) per month is made into the City’s selected plan, 401(a), for each Employee. Loans are permitted.

“Catch-up” Provision
Pursuant to federal and state law, Employees attaining the minimum age of 47, who are within three (3) years of their planned retirement date, may take advantage of the 457 Deferred Compensation Plan "Catch-up" provisions and allowances as defined in federal and state law. To the extent allowed by federal and state law and the City's deferred compensation plan administrator, the City will allow, during the three (3) years prior to an Employee’s planned retirement date, the conversion of accrued Sick, Vacation, Management, Floating Holiday, Sick Leave Conversion, and Holiday Leave hours to cash contribution at the Employee’s base rate of pay in effect at the time of conversion. Leave conversion contributions for the “457 Catch-up” shall normally be distributed over an Employee’s last three (3) years prior to their planned retirement date. However, based on the total amount of “457 Catch-up” contributions available to the Employee, accumulated sick leave hours, and the Employee’s designated retirement date, "457 Catch-up" contributions may occur over a shorter period of time prior to retirement. To be eligible to participate, the Employee must be within three (3) years of his/her planned retirement date, have “457 Catch-up” privileges available to them, be enrolled in the City-sponsored 457 Deferred Compensation Plan.

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The Employee will continue to accrue Sick Leave hours at the normal rate while participating in this program. “Catch-up” hours advanced will be added back to the Employee’s Sick Leave bank for the Sick Leave Program calculation.

“Catch-up”– Vacation Leave
In order to participate, the Employee will select the amount of Vacation Leave he/she wants transferred into deferred compensation at the beginning of each of the three (3) years. The amount can be a selected number of hours or a percentage of Vacation Leave remaining at the end of the year. The Employee’s Vacation Leave balance would then decrease commensurately with the amount of funds withdrawn.

“Age 50+ Catch-up”
In the calendar year an Employee reaches age 50 (or older), they may contribute an additional amount over the normal maximum contribution limit (per the IRS limit). The “Age 50 Catch-up” and “Pre-Retirement Catch-up” provisions may not both be used in the same calendar year. Employees may use accrued Sick, Vacation, Management, Floating Holiday, Sick Leave Conversion, and Holiday Leave hours to contribute this additional amount.

Defined Contribution Plan - 401(A):

Contributions to the deferred compensation plan will be discontinued while an Employee is receiving Workers’ Compensation payments.

DISABILITY:

The City will pay all premiums for a Short/Long Term Disability Program and provide it to all full-time, non-probationary Employees, with a buy-down program to be effective on the 41st calendar day of disability, with a provision to continue regular benefits and benefit accruals during the “buy-down” and Term Disability coverage periods. Salary continuation effective on the 41st consecutive calendar day of disability will be at a rate of 100% of the Employee’s base salary.

Effective on the 61st consecutive calendar day of disability, salary continuation will be made at a 698

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rate of 66-2/3% of the Employee’s base salary. The entire benefit period will not exceed five (5) years.

DISCIPLINARY ACTION APPEAL PROCEDURE CONSISTING OF A WRITTEN REPRIMAND OR LESS:

Chief of Police – The following Appeal procedure will be utilized by the Chief of Police for the purpose of appealing disciplinary action consisting of a Written Reprimand or less. This will be the sole and exclusive procedure afforded to the Chief for appealing disciplinary action consisting of a Written Reprimand or less.

The Chief having received a disciplinary action consisting of a Written Reprimand or less will be entitled to the following appeal procedure pursuant to the Public Safety Officers Procedural Bill of Rights Act at California Government Code § 3304(b) and 3304.5.

Within five (5) workdays of the time the written or verbal reprimand is issued, the Chief will be entitled to a non-evidentiary meeting with the City Manager. The purpose of this administrative appeal is to afford the Chief an opportunity to be heard by the City Manager as to why the Chief believes the discipline should be revoked or modified. The Chief may be heard verbally or in writing. The City Manager will have ten (10) workdays to respond to the Chief. If the City Manager does not respond within ten (10) workdays from the date of the administrative appeal to respond to the Employee, the original disciplinary action will be deemed unchanged.

The determination of the City Manager will be final, binding and conclusive. There will be no other administrative method to appeal the determination of the City Manager.

Deputy Chief of Police and Captain – The following Appeal procedure will be utilized by sworn Employees for the purpose of appealing disciplinary action consisting of a Written Reprimand or less. This shall be the sole and exclusive procedure afforded to sworn Employees for appealing disciplinary action consisting of a Written Reprimand or less.

Any sworn Employee having received a disciplinary action consisting of a Written Reprimand or less shall be entitled to the following appeal procedure pursuant to the Public Safety Officers Procedural Bill of Rights Act at California Government Code § 3304(b) and 3304.5.

Within five (5) work days of the time the written or verbal reprimand is issued, the Employee shall be entitled to a non-evidentiary meeting with the supervisor who issued the disciplinary action.

The purpose of this administrative appeal is to afford the Employee an opportunity to be heard by the supervisor as to why the Employee believes the discipline should be revoked or modified. The Employee may be heard verbally or in writing. The supervisor shall have ten (10) workdays to respond to the Employee. If the supervisor does not respond within ten (10) workdays of the administrative appeal meeting, the original disciplinary action shall be deemed unchanged.

If the matter is not resolved to the aggrieved Employee's satisfaction, within ten (10) workdays of the supervisor's response to the Employee’s appeal, or ten (10) workdays after the time for the supervisor to respond has passed, the Employee shall then be entitled to a non-evidentiary meeting with the Chief of Police. The purpose of this administrative appeal shall be to afford the Employee an opportunity to be heard by the Chief of Police as to why the Employee believes the discipline should be revoked or modified. The Employee may be heard verbally or in writing. The Chief of Police shall have ten (10) workdays to respond to the Employee. If the Chief of Police does not 699

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respond within ten (10) workdays of the administrative appeal meeting, the original disciplinary action shall be deemed unchanged.

The determination of the Chief of Police shall be final, binding and conclusive. There shall be no other administrative method to appeal the determination of the Chief of Police.

DISCIPLINARY APPEAL PROCEDURE CONSISTING OF MORE THAN A WRITTEN REPRIMAND:

The City Manager will no longer serve as the Hearing Officer.

EDUCATIONAL INCENTIVE PAY:

Deputy Chief of Police and Captain – Employees who have served two (2) consecutive years of full-time employment with the Chino Police Department are eligible to receive a one-time payment of his/her total annual base salary at the time the degree is awarded.

Degree Percentage of Salary
Associate of Arts/Science 2-1/2%
Bachelor of Arts/Science 5%
Master of Arts/Science 7%

Employees are eligible to concurrently receive the one-time Educational Incentive Pay while continuing to receive P.O.S.T. Certificate Pay for qualified college degrees received.

FLEXIBLE BENEFITS SPENDING PLAN:

A Section 125 – Flexible Benefits Spending Plan is available for Employee contributions in accordance with IRS regulations.

FLOATING HOLIDAY TIME:

See Holiday Pay below.

HOLIDAYS:

The City has designated twelve (12) ten-hour holidays and two (2) five-hour holidays as follows:

New Year’s Day Martin Luther King
Presidents Day Memorial Day
Independence Day Labor Day
Veterans Day Thanksgiving Day
Day following Thanksgiving Christmas Eve
Christmas Day New Year’s Eve

When a holiday falls on a Saturday, the preceding Friday will be the holiday. When a holiday falls on a Sunday, the following Monday will be the holiday.

HOLIDAY PAY:

Employees are credited with one hundred and twenty (120) Holiday and thirty five (35) Floating Holiday hours at the beginning of each fiscal year (prorated for new-hires following completion of six (6) months of full-time/continuous service). These positions have the option of converting Holiday time to cash or to accumulated time off. Holiday time converted to cash pursuant to exercise of the above option, will be compensated at the current base hourly rate. Any Holidays converted to accumulated time off must be utilized during the fiscal year, and there will be no 700

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option to carry unused accumulated Holiday time from one fiscal year to another. Any unused Holiday hours for the period of July 1 through June 30 of any fiscal year will be paid, on the last pay day of the fiscal year, for all remaining hours calculated at the base hourly rate for each hour of unused Holiday time.

Upon written request to the City’s Finance Department, payment of Holidays will be made in a check separate from the regular payroll check at any time throughout the year. Holiday pay will be calculated at the pay rate at the time of cash out.

Except for retiring from the City, Holiday Leave time used or received in cash in excess of those which would have normally accrued during that period of time in the fiscal year for observed City holidays, will reimburse the City upon termination of their employment.

Special compensation will be reported in accordance with applicable sections of the California Government Code, California Code of Regulations, and the City’s contract with the California Public Employee’s Retirement System. To comply with PERS regulations, this special compensation will be reported to PERS as it is earned.

JURY DUTY:

It is the policy of the City that no Employee be compensated for jury service in excess of ten (10) working days during any fiscal year. A “working day” shall be defined as a regularly scheduled day of work for the affected Employee.

LIFE INSURANCE:

See Death Benefit section.

LUNCH (PAID):

Chief of Police, Deputy Chief of Police, and Captain – Employees receive a one (1) hour paid lunch period included in their 10-hour workday.

MANAGEMENT LEAVE:

Chief of Police – Employee is provided with ninety (90) Management Leave hours in the first pay period of July of each fiscal year. Management Leave is non-accruing and will not be carried from one fiscal year to the next. Newly hired management Employees or current Employees promoted into management will receive a prorated management leave benefit.

Time taken as management leave must be pre-approved by the City Manager prior to its use.

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Up to an additional sixty (60) hours of Management Leave may be granted by the City Manager with a corresponding ability to cash-out these hours for any Employee who demonstrates they are committing an extraordinary amount of time beyond their normal work schedule to the job.

Deputy Chief of Police and Captain – Employees are provided with sixty (60) Management Leave hours in the first pay period in July of each fiscal year. Management Leave is non-accruing and shall not be carried from one fiscal year to the next. Newly hired management Employees or current Employees promoted into management will receive a prorated management leave benefit.

Up to thirty (30) hours of Management Leave may be cashed out at any time during the fiscal year by making a request to the Finance Department. Employees shall use all management leave time no later than the ending date of the second payroll in June (this payroll period does not extend into July). Any unused Management Leave on record at the ending date of the final payroll in June will be cashed out, up to thirty (30) hours maximum. See also Additional Leave.

Up to an additional sixty (60) hours of Management Leave may be granted by the Chief of Police with a corresponding ability to cash out these hours for any Employee who demonstrates they are committing an extraordinary amount of time beyond their normal work schedule to the job.

Except for Employees retiring from the City, Employees resigning/separating from employment will have Management Leave credited on a prorated basis, and amounts used/cashed out in excess of those they qualify for are owed back to the City upon separation. The difference will be deducted from the Employee’s final check(s), or in the event that sufficient funds are not available, the Employee will be responsible to pay back the City within fourteen (14) calendar days from the date of separation.

MEDICARE CONTRIBUTION:

Chief of Police – The City will pay the cost of the Employee portion of the Medicare Tax.

MILEAGE REIMBURSEMENT:

Deputy Chief of Police and Captain – The City agrees to reimburse Employees authorized by the Chief of Police for use of personal automobiles for City business. Employees must provide prior to any mileage reimbursement being paid, the required vehicle insurance verification.

Vehicle insurance coverage must be provided annually and kept on file with the Human Resources/Risk Management Department to remain eligible for mileage reimbursement. If an Employee does not maintain current vehicle insurance coverage, the Human Resources/Risk Management Department will notify the Chief of Police and Finance Department that the mileage reimbursement for the Employee may not be paid until current vehicle coverage has been provided.

The City shall use the standard rate established by the Internal Revenue Service to calculate reimbursement for mileage.

MILITARY LEAVE:

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PERFORMANCE EVALUATION:

PERSONNEL FILE (RESPONSE TO DOCUMENTS PLACED WITHIN):

An Employee is limited to thirty (30) calendar days from service of an adverse document in which to respond to said document placed in his/her Personnel File. If the affected Employee, or the affected Employee’s representative, requires additional time to prepare a response, either party may, in writing, notify the Director of Human Resources/Risk Management and an additional thirty (30) days extension will be granted.

PHYSICAL FITNESS PROGRAM (VOLUNTARY):

Employees shall receive 1-30 hours of pay respectively per fiscal year for demonstration of physical fitness.

The City and the Employee agree and acknowledge that participation in this program is not an implied or express requirement of employment. The City will not be liable for the payment of workers’ compensation benefits for any injuries arising from participation in the program or from training/preparation, which any Employee undertakes for participation in the program. Each Employee participating in the program is required to sign the following acknowledgement at the inception of his/her participation, training, or preparation for the program:

“Participation by Employees of the City of Chino in the volunteer physical fitness program and in training/preparation for participation in the program, is strictly voluntary. No City Employee is expected to participate in the program, and participation is not a part of any City Employee’s work-related duties. The City shall not be liable for the payment of workers’ compensation benefits for any injury which arises from participation in the volunteer physical fitness program, or from training/preparation for participation in the program.

I acknowledge receipt of this notice, agree to be bound by its admonitions, and will file no Workers’ Compensation claim which is related in any way to my participation, training, or preparation for the program.

Dated:

Signature of Employee”

The CPOA and CPMA Association Board Members will determine test dates for the Voluntary Physical Fitness Program and testing will take place over a period of time not to exceed three (3) three months from the date of the first test to the date of the final test. Sworn Employees unable to participate in the testing process due to a work-related illness or injury will be credited the following year in which they participate in the Program with benefits equal to two (2) years of credit.

P.O.S.T. CERTIFICATE PAY:

Chief of Police – Eligible to attempt to qualify to receive additional monthly compensation as follows for possession of the following certificate(s):

Advanced P.O.S.T. Certificate 12% of monthly base salary; and Management P.O.S.T. Certificate 9% of monthly base salary; and 703

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Executive P.O.S.T. Certificate 1% of monthly base salary

Deputy Chief of Police and Captain – Employees are eligible to attempt to qualify to receive additional monthly compensation as follows for possession of the following certificate(s):

Intermediate P.O.S.T. Certificate 6% of monthly base salary; or Advanced P.O.S.T. Certificate 12% of monthly base salary; and Management P.O.S.T. Certificate 9% of monthly base salary

Qualified Employees eligible to receive P.O.S.T. Certificate Pay will receive compensation paid over the normal twenty-six (26) pay periods each fiscal year.

Deputy Chief of Police and Captain – Employees will be eligible to concurrently receive the one- time Educational Incentive Pay (equal to that provided to the Chino Police Association in Resolution 85-54) while continuing to receive P.O.S.T. Certificate Pay for qualified college degrees received.

PROFESSIONAL MEMBERSHIP DUES AND RELATED MEALS:

Each fiscal year, the City shall reimburse the Chief of Police for dues and related meeting attendance meals for one (1) of the following organizations:
 Chino Valley Lions Club
 Rotary Club of Chino Valley
 Kiwanis Club of Chino
 Soroptimists Chino Valley

RECRUITMENT INCENTIVES:

For recommendation resulting in Sworn Officer hire:
 $2,000 at hire + $500 upon completion of probation for entry level.  $4,000 at hire + $1,000 upon completion of probation for lateral.

For recommendation resulting in hire of Public Safety Dispatcher or Public Safety Dispatch Supervisor:
 $2,000 at hire + $500 at time of completion of probation.

NOTE: The Chief of Police is not eligible for this benefit. In addition, any Police Department personnel who are assigned to the Backgrounds and Training Unit or who are given any work responsibility related to the recruitment and hiring of Employees are not eligible for this benefit unless the recommendation for hire is made independent of their duties as a Recruitment Team Member, i.e., outside of the work hours in which they are formally assigned to serve in the capacity of “Recruiter”. To receive incentive pay, the Recruitment Team Member must prepare a written memorandum to the Chief of Police, detailing the circumstances under which contact was made with the individual recommended for hire. Upon the Chief’s review and approval of this submission, in compliance with the guidelines established for the Hiring Incentive Program, the Recruiter may receive the same hiring incentive compensation afforded to non-Recruitment Team Members.

REHIRE POLICY:

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conditions of employment applicable to any newly hired Employee. The only exception shall be that any Employee rehired shall have their leave accrual rates determined based upon the number of years of service with the City of Chino prior to their resignation.

Employees rehired by the City under the City’s Rehire Policy will be allowed to buy back any time cashed out at time of separation. Said buy back shall be at the hourly rate existing upon rehire.

Sick Leave on record at the time of separation that was not compensated for will be reinstated.

RETIREMENT:

The City has a three-tier retirement benefit as follows:

Plan for sworn personnel:

A. Employees hired before the contract amendment with CalPERS effective October 16, 2011, will continue to be eligible for the 3% at age 50 Plan, with the single highest year final compensation.

B. Employees hired on or after the contract amendment with CalPERS effective October 16, 2011, will be enrolled in the 3% at age 55 Plan, with a 3-year average final compensation.

C. Employees hired on or after January 1, 2013, will be enrolled in the 2.7% at age 57 (PEPRA) Plan, with a 3-year average final compensation.

Member contributions:

Members will contribute the Employee rate of contributions each payroll. All Employee-paid contributions to CalPERS will be made on a pre-tax basis, in accordance with IRS section 414 (h) (2) and CalPERS guidelines:

A. 3% at age 50, if hired before October 16, 2011:
1) Employee contribution rate – 9% of reportable compensation.

B. 3% at age 55, if hired on or after October 16, 2011:
1) Employee contribution rate – 9% of reportable compensation.

C. 2.7% at age 57 (PEPRA), if entering CalPERS membership on or after January 1, 2013:
1) Employee contribution rate – 13% of reportable compensation (subject to change).

RETIREMENT HEALTH SAVINGS (RHS) PLAN:

A Retirement Health Savings Plan is established in accordance with IRS regulations.  Employee contributes 1% of base earnings each pay period. Upon separation from the City, a 90% cash out of all qualifying, verified accrued leave will be deposited to the Employee’s RHS plan.
 City will contribute three hundred dollars ($300) per month, deposited on a twenty-four (24) pay period cycle.

SALARY ADJUSTMENTS (Overpayments, Recovery, and Underpayments):

All adjustments to an Employee’s salary shall be made at the start of the pay period in which the salary adjustment becomes effective.

A. Overpayments

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3. Extensions to the period for repayment of the overage or an alternative repayment method may be requested by the Employee and are subject to the Approval of the Director of Human Resources/Risk Management or their designee. Extensions will be approved only the in case of extreme hardship, and the extended period for repayment will not be longer than one and one-half (1 ½) times as long as the overpayment period.

B. Recovery

C. Underpayments

SEPARATION FROM CITY:

Chief of Police – At the discretion and approval of the City Manager, Employees may be allowed to extend their last day of employment through the use of leave time for up to one (1) pay period beyond the last day the Employee actually reports to work.

Deputy Chief of Police and Captain – At the discretion and approval of the Chief of Police, Employees may be allowed to extend their last day of employment through the use of leave time for up to one (1) pay period beyond the last day the Employee actually reports to work.

The approval of such an extension shall be subject to operational needs, departmental policies, and compliance with all applicable rules governing leave usage. The Chief of Police or designee shall be responsible for reviewing and granting requests on a case-by-case basis to ensure consistency and fairness in application.

Leave time is defined as vacation, holiday, or management. Sick leave usage will be allowed under the terms of Sick Leave, and those provisions must be followed for any sick leave usage to be allowed.

SEVERANCE:

Should the City Manager elect to terminate employment without cause, the City shall, upon effective date of such termination, and with signature on Waiver and Release Agreement, pay to the Employee severance in the amount equal to six (6) months of their base monthly salary, less applicable deductions and excluding deferred compensation or the value of any other benefits.

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SICK LEAVE:

If an Employee changes status (e.g. changes from full-time to part-time employment), or separates from this bargaining group, the Employee will be subject to the new bargaining group’s MOU or Compensation and Benefit Plan.

Upon notice of resignation or retirement from the City, any sick leave usage requested will require a doctor’s note or certification. If documentation is not received, the Employee will not receive payment for any Sick Leave hours for time missed from work.

SICK LEAVE BUY BACK:

At separation of employment the City will buy back a percentage of the Employee’s accrued Sick Leave hours, at the hourly base rate of pay at the time of separation. This benefit is contingent upon non-retirement, non-disciplinary separation, and completion of five (5) years full-time employment with the City. The percentage of Sick Leave Buy Back is:

Completed Years of Service % of Sick Leave Converted to Compensation
5 years 30%
10 years 35%
15 years 40%
20 or more years 45%

The City shall buy back 100% of the Employee’s accrued Sick Leave hours for a service or disability retirement following five (5) years of full-time employment with the City as the final employer. The percentages may be adjusted in accordance with the Retirement Health Savings Plan elections and provisions for affected individuals, per IRS regulations.

SICK LEAVE CONVERSION TO COMPENSATION:

Chief of Police – Who has accrued in excess of three hundred and twenty (320) hours of Sick Leave as of the final pay period in June of each year will have the option of annually converting up to forty (40) hours to compensation, for hours in excess of three hundred and twenty (320) hours, calculated at their base rate of pay. Sick Leave Conversion is paid in the final payroll check of each fiscal year.

SICK LEAVE CONVERSION TO PERSONAL LEAVE:

For Employees who have earned Sick Leave accrual benefits for one (1) full fiscal year, Sick Leave may be converted to Personal Leave in accordance with the following schedule.

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SICK LEAVE PROGRAM:

SPECIAL COMPENSATION PAYMENT SCHEDULE:

Employees eligible to receive special compensation benefits which are a percentage of base pay, such as P.O.S.T. Certificate Pay, will receive compensation paid over twenty-six (26) pay periods each fiscal year. All other special compensation, such as Bilingual Pay, will receive compensation paid over twenty-four (24) pay periods each fiscal year. Special compensation will be reported in accordance with applicable sections of the California Government Code, California Code of Regulations, and the City’s contract with the California Public Employees’ Retirement System.

SUPPLEMENTAL CONTRIBUTION FOR RETIREES:

Employees separating from City employment as a result of a non-disputed disability or service retirement after completion in either case of fifteen (15) years of continuous, uninterrupted, full- time sworn City service shall receive a monthly supplemental contribution equal to fifteen dollars ($15) per month multiplied by the number of years of service from time of retirement and shall continue until death of the retiree. (For example, an Employee retiring after 15 years of required continuous service shall receive a City-funded supplemental contribution in the amount of $225 per month.) However, if the retiree dies after receipt of this benefit for less than fifteen (15) years, then the benefit will continue to be paid to the eligible spouse, if any, until the duration of benefits payments totals a complete fifteen (15) years from the date that the payments commenced. For example, if the eligible retiree should die after receiving ten (10) years of the supplemental contribution as described herein, and the now deceased eligible retiree has a legal spouse, said spouse shall continue to receive the benefit for a remaining 5 years. No benefit shall be provided to any other beneficiary with the exception of what is noted here after the member’s death. A disputed disability retirement is defined as one in which the City has not certified the retirement as being valid for disability status. This benefit in its entirety shall apply only to Employees employed as of June 30, 1998. Thereafter, no future Employees in this position classification shall 708

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qualify for this benefit at any level whatsoever. Future hires will be provided with no supplemental contribution for retirees.

TUITION ADVANCE PROGRAM:

Full-time, non-probationary Employees who desire to enroll in an accredited college/university degree program or professional development course, are eligible for tuition advancement up to a maximum of three thousand, five hundred dollars ($3,500) per fiscal year. A Tuition Advancement Form must be received by the Human Resources/Risk Management Department for review and approval before and advance will be provided. Budgeted funds must be available to cover tuition advance and no expenditure beyond the approved budget allocation will be authorized to cover any amount of any Employee’s educational expenses.

The non-probationary status requirement does not pertain to those Employees who are considered to hold probationary status due to a promotion into a new position in the City. Affected Employees are required to complete one year of service with the City from the date of completion of course work to be eligible for this benefit. Individuals voluntarily separating from the City prior to completion of one year of service with the City from date of completion of course work will be required to reimburse the City for funds advanced to them under this program. Said reimbursement shall be deducted from any separation check to be distributed to the Employee, no matter what the nature of the funds, without the necessity of a judgement being mandated on behalf of the City.

Employees agree that upon accepting a tuition advance from the City, the Employee is responsible to provide the City with verification of completion of class(es), grade(s) and receipts for expenses within sixty (60) calendar days from the date of final course work (as indicated on the request for tuition advance form submitted by the Employee). In the event that the educational institution attended does not provide the Employee with verification of completion or grades or receipts within this sixty (60) calendar days timeframe, the Employee is responsible to notify the Director of Human Resources/Risk Management, in writing, of such and an additional sixty (60) calendar days extension will be granted. In the event that an Employee does not provide verification of completion of class(es), grade(s) and receipts for expenses at the end of either the initial sixty (60) calendar days or at the end of the extension of an additional sixty (60) calendar days (to 120 calendar days total), the City will have the right to automatically make a payroll deduction from the Employee’s next regular payroll check in an amount equal to the amount of tuition funds advanced.

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TUITION REIMBURSEMENT – ENHANCED PROGRAM:

Employees who have incurred otherwise reimbursable tuition cost in an amount greater than the maximum amount available shall be eligible to receive additional reimbursement to the extent that tuition reimbursement funds are available at the end of each fiscal year. No such distribution will be made until the conclusion of the fiscal year in order to verify the number of Employees making an application for the enhanced benefit. Employees must submit a tuition reimbursement invoice to the Human Resources/Risk Management Department no later than May 1st of each year in order to participate in this Enhanced Program.

It shall remain the individual Employee’s responsibility to apply for and receive written authorization to participate in a tuition reimbursable course prior to any such enrollment.

UNIFORM CLOTHING/CLEANING ALLOWANCE:

The City shall provide to affected Employees a clothing/cleaning allowance of one thousand two hundred dollars ($1,200) per year. Affected Employees shall receive payment for their total clothing/cleaning allowance one time per year. This payment shall be in a check separate from the Employee’s regular paycheck and shall be provided at the time of distribution on the second payroll check in August of each year. Upon appointment/promotion to a non-eligible position classification or separation from employment prior to the end of a fiscal year, the Employee shall be responsible to reimburse to the City on a pro-rated basis such amount which he/she is no longer eligible to receive.

The amount of reportable compensation for uniforms shall not exceed seven hundred and seventy dollars ($770) per year. Non-uniformed clothing will not be included with reportable compensation in accordance with CalPERS guidelines. At the Employee’s option, the annual allowance may be used toward the purchase of new Police Department uniform in an amount to be determined individually by each Employee.

VACATION LEAVE:

Vacation Leave will be taken at a time approved by the Chief of Police with due regard for the wishes of the Employee and particular regard for the needs of the City. Unless otherwise provided by Department rules, Employees must submit vacation requests to their supervisor at least seven (7) calendar days prior to the intended start of vacation. No person will be permitted to work for compensation for the City during his/her vacation except with prior approval of the Chief of Police.

In the event that one or more City holidays fall within an annual Vacation Leave, the holidays will 710

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Chino City CouncilNovember 18, 2025

Chino City Council
November 18, 2025