Fairfield City Council
October 15, 2024

EXHIBIT A

FORM OF 2024A BOND

No. __ ***$______***

UNITED STATES OF AMERICA

STATE OF CALIFORNIA

COUNTY OF SOLANO

IMPROVEMENT AREA NO. 1 OF THE

CITY OF FAIRFIELD
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(ONE LAKE PLANNING AREA 5)
SPECIAL TAX BOND, SERIES 2024A

INTEREST RATE MATURITY DATE DATED DATE

____% September 1, ______ November __, 2024

REGISTERED OWNER:

PRINCIPAL AMOUNT: *********DOLLARS

The City of Fairfield (the “City”) for and on behalf of the "City of Fairfield Community Facilities District No. 2024-1 (One Lake Planning Area 5)" (the “CFD”) with respect to its “Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2024-1 (One Lake Planning Area 5)" (“Improvement Area No. 1”), for value received, hereby promises to pay solely from the Special Tax Revenues (as hereinafter defined) to be collected in Improvement Area No. 1 or amounts in certain funds and accounts 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 Dated Date set forth above, or from the most recent Interest Payment Date (as hereinaf ter defined) to which interest has been paid or duly provided for (unless this Bond is authenticated on or before an Interest Payment Date (as hereinafter defined) and after the close of business on the Record Date (as hereinafter defined) preceding such Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or unless this Bond is authenticated on or prior to February 15, 2025, in which event it shall bear interest from the Dated Date identified above, payable semiannually on each September 1 and March 1, commencing March 1, 2025 (each an “Interest Payment Date”), at the interest rate set forth above, until the principal amount hereof is paid or made available for payment provided, however, that if at the time of authentication of this Bond, interest is in default on this Bond, this Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment.

Capitalized terms not defined have meaning set forth in the Fiscal Agent Agreement (defined below).

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Exhibit A

Principal of and interest on the Bonds (including the final interest payment upon maturity or earlier redemption), is payable on the applicable Interest Payment Date by check of the Fiscal Agent (defined below) mailed by first class mail to the registered Owner thereof at such registered Owner's address as it appears on the registration books maintained by the Fiscal Agent at the close of business on the Record Date preceding the Interest Payment Date, or by wire transfer made on such Interest Payment Date upon written instructions of any Owner of $1,000,000 or more in aggregate principal amount of Bonds delivered to the Fiscal Agent prior to the applicable Record Date. The principal of the Bonds and any premium on the Bonds are payable in lawful money of the United States of America upon surrender of the Bonds at the Principal Office of the Fiscal Agent or such other place as designated by the Fiscal Agent.

This Bond is one of a duly authorized issue of bonds in the aggregate principal amount of $___________ approved by resolutions of the City Council (collectively, the “Resolution”), under the Mello-Roos Community Facilities Act of 1982, as amended, sections 53311, et seq., of the California Government Code (the “Act”) for the purpose of funding certain facilities for the City, and is one of the series of bonds designated “Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2024-1 (One Lake Planning Area 5) Special Tax Bonds, Series 2024A” (the “Bonds”). The issuance of the Bonds and the terms and conditions thereof are provided for by a Fiscal Agent Agreement, dated as of November 1, 2024 (the “Fiscal Agent Agreement”), between the City and The Bank of New York Mellon Trust Company, N.A. (the “Fiscal Agent”) and this reference incorporates the Fiscal Agent Agreement herein, and by acceptance hereof the owner of this Bond assents to said terms and conditions. The Fiscal Agent Agreement is authorized under, 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, the Resolution and the Fiscal Agent Agreement, the principal of and interest on this Bond are payable solely from the annual special tax authorized under the Act to be collected within Improvement Area No. 1 (the “Special Tax”) and certain funds held under the Fiscal Agent Agreement. Any tax for the payment hereof shall be limited to the Special Tax, except to the extent that provision for payment has been made by the City, as may be permitted by law. The Bonds do not constitute obligations of the City for which the City is obligated to levy or pledge, or has levied or pledged, general or special taxation other than described hereinabove. Neither the faith and credit nor the taxing power of the City (except to the limited extent set forth in the Fiscal Agent Agreement) or the State of California or any political subdivision thereof is pledged to the payment of the Bonds.

Optional Redemption. The Bonds maturing on or before September 1, ____ are not subject to optional redemption prior to their stated maturity. The Bonds maturing on or after September 1, ____, are subject to redemption, as a whole or in part at the election of the City among maturities on such basis as designated by the City and by lot within a maturity, at the option of the City, on September 1, ____, and on any date thereafter, at a redemption price equal to 100% of the principal amount of Bonds to be redeemed, together with accrued interest thereon to the date fixed for redemption, without premium.

Mandatory Sinking Fund Redemption. The Term Bonds maturing on September 1, ____ and September 1, ____, are subject to mandatory redemption in part by lot, from sinking fund payments made by the City from the Bond Fund, at a redemption price equal to the principal amount thereof to be redeemed, without premium, in the aggregate respective principal amounts all as set forth in the following table:

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Exhibit A

Term Bond Maturing September 1, ____

Sinking Fund
Redemption Date
(September 1)

Sinking Fund
Payments

(maturity)

Term Bond Maturing September 1, ____

Sinking Fund
Redemption Date
(September 1)

Sinking Fund
Payments

(maturity)

Provided, however, if some but not all of the Term Bonds of a given maturity have been redeemed as a result of an optional redemption or a mandatory redemption, the total amount of all future Sinking Fund Payments relating to such maturity shall be reduced by the aggregate principal amount of Term Bonds of such maturity so redeemed, to be allocated among such Sinking Fund Payments on a pro rata basis in integral multiples of $5,000 as determined by the Fiscal Agent, notice of which determination shall be given by the Fiscal Agent to the City.

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Exhibit A

Redemption From Special Tax Prepayments. The Bonds are also subject to redemption from the proceeds of Special Tax Prepayments and any corresponding transfers from the 2024 Reserve Fund pursuant to the Fiscal Agent Agreement on any Interest Payment Date, among maturities so as to maintain substantially the same debt service profile as in effect prior to such redemption and by lot within a maturity, at a redemption price (expressed as a percentage of the principal amount of the Bonds to be redeemed), as set forth below, together with accrued interest to the date fixed for redemption:

Redemption Dates
Redemption
Price
Any Interest Payment Date on or before March 1, ____ ____% September 1, ____and March 1, ____ ____
September 1, ____and March 1, ____ ____
September 1, ____and any Interest Payment Date thereafter ____

Notice of redemption with respect to the Bonds to be redeemed shall be given to the registered owners thereof, in the manner, to the extent and subject to the provisions of the Fiscal Agent Agreement.

This Bond shall be registered in the name of the owner hereof, as to both principal and interest. Each registration and transfer of registration of this Bond shall be entered by the Fiscal Agent in books kept by it for this purpose and authenticated by its manual signature upon the certificate of authentication endorsed hereon.

No transfer or exchange hereof shall be valid for any purpose unless made by the registered owner, by execution of the form of assignment endorsed hereon, and authenticated as herein provided, and the principal hereof, interest hereon and any redemption premium shall be payable only to the registered owner or to such owner’s order. The Fiscal Agent shall require the registered owner requesting transfer or exchange to pay any tax or other governmental charge required to be paid with respect to such transfer or exchange. No transfer or exchange hereof shall be required to be made (i) fifteen days prior to the date established by the Fiscal Agent for selection of Bonds for redemption or (ii) with respect to a Bond after such Bond has been selected for redemption.

The Fiscal Agent Agreement and the rights and obligations of the City thereunder may be modified or amended as set forth therein. The principal of the Bonds is not subject to acceleration upon a default under the Fiscal Agent Agreement or any other document.

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

IT IS HEREBY CERTIFIED, RECITED AND DECLARED by the City that all acts, conditions and things required by law to exist, happen and be performed precedent to and in the issuance of this Bond have existed, happened and 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 City, does not exceed any debt limit prescribed by the laws or Constitution of the State of California.

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Exhibit A

Unless this Bond is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), 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 DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC),

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.

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Exhibit A

IN WITNESS WHEREOF, City of Fairfield has caused this Bond to be to be signed by the facsimile signature of its City Manager and countersigned by the facsimile signature of the City Clerk with the seal of the City imprinted hereon.

[S E A L]

City Clerk City Manager

[FORM OF FISCAL AGENT’S CERTIFICATE OF AUTHENTICATION AND REGISTRATION]

This is one of the Bonds described in the Fiscal Agent Agreement which has been authenticated on , 2024.

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

By:

Authorized Signatory
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Exhibit A

FORM OF ASSIGNMENT

For value received, the undersigned do(es) hereby sell, assign and transfer unto

(Name, Address and Tax Identification or Social Security Number of Assignee)

the within Bond and do(es) hereby irrevocably constitute and appoint , attorney, to transfer the same on the registration books of the Fiscal Agent, with full power of substitution in the premises.

Dated:

Signature Guaranteed:

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

NOTICE: Signature guarantee shall be
made by a guarantor institution participating
in the Securities Transfer Agents Medallion
Program or in such other guarantee
program acceptable to the Fiscal Agent
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Exhibit B

EXHIBIT B

IMPROVEMENT AREA NO. 1 OF THE

CITY OF FAIRFIELD
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(ONE LAKE PLANNING AREA 5)
SPECIAL TAX BONDS, SERIES 2024A

OFFICER’S CERTIFICATE REQUESTING DISBURSEMENT FROM IMPROVEMENT FUND

REQUISITION NO. _____

The undersigned hereby states and certifies that:

(i) I am the duly appointed, qualified and acting City Manager of the City of Fairfield, a general law city duly organized and existing under the laws of the State of California (the “City”) and as such, am familiar with the facts herein certified and am authorized to certify the same;

(ii) I am an “Authorized Officer,” as such term is defined in that certain Fiscal Agent Agreement, dated as of November 1, 2024 (the “Fiscal Agent Agreement”), by and between the City and The Bank of New York Mellon Trust Company, N.A., as fiscal agent (the “Fiscal Agent”);

[if moneys are being requisitioned from the Bond Proceeds Account] (iii) under Section

4.07(B) of the Fiscal Agent Agreement, the undersigned hereby requests and authorizes the Fiscal Agent to disburse from the Bond Proceeds Account established under the Fiscal Agent Agreement to each payee designated on Schedule A attached hereto and by this reference incorporated herein, the amount set forth opposite such payee, for payment or reimbursement of previous payment of a Project cost (as Project is defined in the Fiscal Agent Agreement) as described on attached Schedule A;

[if moneys are being requisitioned from the Remainder Taxes Account] (iv) under Section 4.07(B) of the Fiscal Agent Agreement, the undersigned hereby requests and authorizes the Fiscal Agent to disburse from the Remainder Taxes Account established under the Fiscal Agent Agreement to each payee designated on Schedule A attached hereto and by this reference incorporated herein, the amount set forth opposite such payee, for payment or reimbursement of previous payment of a Project cost as described on attached Schedule A;

[if moneys are being transferred to the Bond Fund or the Administrative Expense Fund] (v) under Section 4.07(B) of the Fiscal Agent Agreement, the undersigned hereby requests and authorizes the Fiscal Agent to transfer $_____ from the Remainder Taxes Account established under the Fiscal Agent Agreement to [the Bond Fund] [the Administrative Expense Fund] [the 2024 Reserve Fund]; and

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Exhibit B

(vi) the disbursements described on the Attached Schedule A constitute Project costs and are properly chargeable to the Improvement Fund; and

(v) no portion of the amount herein requested to be disbursed was set forth in any Officer’s Certificate previously filed requesting disbursement.

Dated:

City of Fairfield

By:

City Manager
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Exhibit B

SCHEDULE A

Payee Name and
Address

Purpose of Obligation

Amount
Account from which
Amounts should be
paid

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Exhibit C

EXHIBIT C

IMPROVEMENT AREA NO. 1 OF THE

CITY OF FAIRFIELD
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(ONE LAKE PLANNING AREA 5)
SPECIAL TAX BONDS, SERIES 2024A

OFFICER’S CERTIFICATE REQUESTING DISBURSEMENT

FROM COSTS OF ISSUANCE FUND

REQUISITION NO. _____

The undersigned hereby states and certifies that:

(i) I am the duly appointed, qualified and acting Finance Director of the City of Fairfield, a general law city duly organized and existing under the laws of the State of California (the “City”) and as such, am familiar with the facts herein certified and am authorized to certify the same.

(ii) I am an “Authorized Officer,” as such term is defined in that certain Fiscal Agent Agreement, dated as of November 1, 2024 (the “Fiscal Agent Agreement”), by and between the City and The Bank of New York Mellon Trust Company, N.A., as fiscal agent (the “Fiscal Agent”).

(iii) Under Section 4.02(B) of the Fiscal Agent Agreement, the undersigned hereby requests and authorizes the Fiscal Agent to disburse from the Costs of Issuance Fund established under the Fiscal Agent Agreement to each payee designated on Schedule A attached hereto and by this reference incorporated herein, the amount set forth opposite such payee, for payment or reimbursement of previous payment of Costs of Issuance (as that term is defined in the Fiscal Agent Agreement) as described on attached Schedule A. Payments shall be made by check or wire transfer in accordance with the payment instructions set forth on Schedule A (or the invoice attached thereto) and the Fiscal Agent shall rely on such payment instructions as though given by the City with no duty to investigate or inquire as to the authenticity of the invoice or the payment instructions contained therein or the authority under which they were given.

(iv) The disbursements described on the attached Schedule A constitute Costs of Issuance, and are properly chargeable to the Costs of Issuance Fund.

Dated:

City of Fairfield

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Exhibit C

By:

Finance Director
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Exhibit C

SCHEDULE A

Payee Name and Address Purpose of Obligation Amount
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Exhibit D

EXHIBIT D

IMPROVEMENT AREA NO. 1 OF THE

CITY OF FAIRFIELD
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(ONE LAKE PLANNING AREA 5)
SPECIAL TAX BONDS, SERIES 2024A

OFFICER’S CERTIFICATE REQUESTING DISBURSEMENT

FROM ADMINISTRATIVE EXPENSE FUND

REQUISITION NO. _____

The undersigned hereby states and certifies that:

(i) I am the duly appointed, qualified and acting City Manager of the City of Fairfield, a general law city duly organized and existing under the laws of the State of California (the “City”) and as such, am familiar with the facts herein certified and am authorized to certify the same;

(ii) I am an “Authorized Officer,” as such term is defined in that certain Fiscal Agent Agreement, dated as of November 1, 2024 (the “Fiscal Agent Agreement”), by and between the City and The Bank of New York Mellon Trust Company, N.A., as fiscal agent (the “Fiscal Agent”);

(iii) under Section 4.06(B) of the Fiscal Agent Agreement, the undersigned hereby requests and authorizes the Fiscal Agent to disburse from the Administrative Expense Fund established under the Fiscal Agent Agreement to each payee designated on Schedule A attached hereto and by this reference incorporated herein, the amount set forth opposite such payee, for payment or reimbursement of previous payment of an Administrative Expense or Costs of Issuance (as those terms are defined in the Fiscal Agent Agreement) as described on attached Schedule A; and

(iv) the disbursements described on the attached Schedule A constitute Administrative Expenses or Costs of Issuance, and are properly chargeable to the Administrative Expense Fund.

Dated:

City of Fairfield

By:

City Manager
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Exhibit D

SCHEDULE A

Payee Name and Address Purpose of Obligation Amount

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Agenda Item No: 16.

AGENDA REPORT
DATE:October 15, 2024
TO:Mayor and City Council
FROM:David Gassaway, City Manager
SUBJECT:Public Hearing; and Resolutions 2024­254 Through 2024­256 and Ordinance 2024­09 for Proceedings (Including a Landowner Election) to Amend and Restate the Rate and Method of Apportionment of Special Tax for Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023­1 (One Lake Planning Area 5) and Increase the Amount of Bonded Indebtedness
RECOMMENDED ACTION
Hold public hearing, conduct a landowner election, adopt resolutions and introduce ordinance.

STATEMENT OF ISSUE
On September 3, 2024, the City Council adopted an ordinance approving a 5th Amendment to the existing Amended and Restated Development Agreement (5th Amendment) between the City and Canon Station, LLC. The current master developer of the One Lake Project is One Lake Holding LLC (Master Developer). The Amended and Restated Development Agreement covers approximately 1,570 acres of land located approximately one­half mile east of Peabody Road on Vanden Road's west and east sides. The 5th Amendment increases the maximum combined tax rate, as defined in the 5th Amendment, from a maximum of 1.65% to 1.75%. The rates set forth in the proposed amended rate and method to be considered with the change proceedings reflects the 1.75% limitation.

This item relates to proposed change proceedings for City of Fairfield Community Facilities District No. 2023­1 (One Lake Planning Area 5) that would implement the changes approved in the 5th Amendment.

DISCUSSION
Background Information About the Development Agreement:On August 16, 2011, the council entered into a Development Agreement (Development Agreement) with Canon Station LLC regarding approximately 1,570 acres within the Train Station Specific Plan (TSSP) Area. Canon Station LLC is the master developer of the One Lake neighborhood, known as Planning Area 4 and Planning Area 5 in the TSSP. The Development Agreement was subsequently amended in 2012, and then amended and restated on December 16, 2014. Since then, it has been further amended. 5th Amendment:On September 3, 2024, the council adopted an ordinance approving the 5th Packet Page 463 of 530

Agenda Item No: 16.AGENDA REPORTDATE:October 15, 2024 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Public Hearing; and Resolutions 2024­254 Through 2024­256 and Ordinance 2024­09for Proceedings (Including a Landowner Election) to Amend and Restate the Rate andMethod of Apportionment of Special Tax for Improvement Area No. 1 of the City ofFairfield Community Facilities District No. 2023­1 (One Lake Planning Area 5) andIncrease the Amount of Bonded IndebtednessRECOMMENDED ACTIONHold public hearing, conduct a landowner election, adopt resolutions and introduce ordinance.STATEMENT OF ISSUEOn September 3, 2024, the City Council adopted an ordinance approving a 5th Amendment to theexisting Amended and Restated Development Agreement (5th Amendment) between the City andCanon Station, LLC. The current master developer of the One Lake Project is One Lake Holding LLC(Master Developer). The Amended and Restated Development Agreement covers approximately 1,570acres of land located approximately one­half mile east of Peabody Road on Vanden Road's west andeast sides. The 5th Amendment increases the maximum combined tax rate, as defined in the 5thAmendment, from a maximum of 1.65% to 1.75%. The rates set forth in the proposed amended rateand method to be considered with the change proceedings reflects the 1.75% limitation.This item relates to proposed change proceedings for City of Fairfield Community Facilities District No.2023­1 (One Lake Planning Area 5) that would implement the changes approved in the 5th Amendment.DISCUSSIONBackground Information About the Development Agreement:On August 16, 2011, the councilentered into a Development Agreement (Development Agreement) with Canon Station LLC regardingapproximately 1,570 acres within the Train Station Specific Plan (TSSP) Area. Canon Station LLC isthe master developer of the One Lake neighborhood, known as Planning Area 4 and Planning Area 5 inthe TSSP. The Development Agreement was subsequently amended in 2012, and then amended and restated on December 16, 2014. Since then, it has been further amended. 5th Amendment:On September 3, 2024, the council adopted an ordinance approving the 5th Amendment. The 5th Amendment increases the maximum combined tax rate, as defined in the 5th Amendment, from 1.65% to 1.75%.

Background Information about the CFD and Improvement Area No. 1:The City Council previously conducted proceedings under the Mello­Roos Community Facilities Act of 1982, (Mello­ Roos Act), to form (i) “City of Fairfield Community Facilities District No. 2023­1 (One Lake Planning Area 5)” (CFD), (ii) “Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023­1 (One Lake Planning Area 5)” (Improvement Area No. 1), and (iii) “City of Fairfield Community Facilities District No. 2023­1 (One Lake Planning Area 5) (Future Annexation Area)” (Future Annexation Area).

The City established the CFD pursuant to Resolution No. 2023­31 adopted on February 21, 2023 (Resolution of Formation), and, among other things, provided for the levy of special taxes upon the land within the CFD and the improvement areas therein to finance certain public facilities and services described in Exhibit A to the Resolution of Formation and approved a rate and method of apportionment of special taxes for Improvement Area No. 1 (Improvement Area No. 1 Rate and Method). In its Resolution No. 2023­32 adopted on February 21, 2023 (Resolution Determining Necessity), the council determined the necessity for the City to incur bonded indebtedness in one or more series (i) on behalf of Improvement Area No. 1 in an aggregate amount not to exceed $90,000,000 (Improvement Area No. 1 Bonded Indebtedness Limit) and (ii) on behalf of those portions of the CFD that are not included in Improvement Area No. 1 in an aggregate amount of not to exceed $15,000,000 (Non­Improvement Area No. 1 Bonded Indebtedness Limit); and At an election of the qualified electors in Improvement Area No. 1 held on February 21, 2023, the qualified electors approved, among other things, the levy of special taxes according to the Improvement Area No. 1 Rate and Method and the Improvement Area No. 1 Bonded Indebtedness Limit.

Pursuant to Ordinance No. 2023­05, introduced by the council on February 21, 2023, and adopted on March 21, 2023, the council levied special taxes in Improvement Area No. 1 according to the Improvement Area No. 1 Rate and Method.

All of the territory in the CFD as of the date hereof is located in Improvement Area No. 1.

Proposed CFD Change Proceedings:Pursuant to a petition received by the City from One Lake Holdings LLC, which is the owner of 25% or more of the land within Improvement Area No. 1 that is not exempt from the special taxes, the City has been asked to (i) amend the Improvement Area No. 1 Rate and Method to increase the rate of the special taxes, (ii) increase the Improvement Area No. 1 Bonded Indebtedness Limit from $90,000,000 to $100,000,000, and (iii) increase the Non­Improvement Area No. 1 Bonded Indebtedness Limit from $15,000,000 to $20,000,000.

On September 3, 2024, the council adopted a resolution declaring its intention to undertake the requested change proceedings and calling a public hearing for October 15, 2024.

The remaining “change proceedings” require a handful of steps:

1. At tonight’s meeting, staff recommends that the council:
a. Hold the public hearing. The City is obligated to halt the change proceedings as a result of a majority protest by the landowners in Improvement Area No. 1; the County has confirmed that there are no registered voters in the CFD.
b. The landowner electors in Improvement Area No. 1 have waived otherwise applicable time periods for the election, as permitted by the Mello­Roos Act; as a result, the City Council may conduct the mail ballot election immediately upon completion of the public hearing, which requires (1) the council to adopt a resolution calling the election, (2) the city clerk to open the ballots, and (3) the council to adopt a resolution declaring the results of the election.

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Agenda Item No: 16.AGENDA REPORTDATE:October 15, 2024 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Public Hearing; and Resolutions 2024­254 Through 2024­256 and Ordinance 2024­09for Proceedings (Including a Landowner Election) to Amend and Restate the Rate andMethod of Apportionment of Special Tax for Improvement Area No. 1 of the City ofFairfield Community Facilities District No. 2023­1 (One Lake Planning Area 5) andIncrease the Amount of Bonded IndebtednessRECOMMENDED ACTIONHold public hearing, conduct a landowner election, adopt resolutions and introduce ordinance.STATEMENT OF ISSUEOn September 3, 2024, the City Council adopted an ordinance approving a 5th Amendment to theexisting Amended and Restated Development Agreement (5th Amendment) between the City andCanon Station, LLC. The current master developer of the One Lake Project is One Lake Holding LLC(Master Developer). The Amended and Restated Development Agreement covers approximately 1,570acres of land located approximately one­half mile east of Peabody Road on Vanden Road's west andeast sides. The 5th Amendment increases the maximum combined tax rate, as defined in the 5thAmendment, from a maximum of 1.65% to 1.75%. The rates set forth in the proposed amended rateand method to be considered with the change proceedings reflects the 1.75% limitation.This item relates to proposed change proceedings for City of Fairfield Community Facilities District No.2023­1 (One Lake Planning Area 5) that would implement the changes approved in the 5th Amendment.DISCUSSIONBackground Information About the Development Agreement:On August 16, 2011, the councilentered into a Development Agreement (Development Agreement) with Canon Station LLC regardingapproximately 1,570 acres within the Train Station Specific Plan (TSSP) Area. Canon Station LLC isthe master developer of the One Lake neighborhood, known as Planning Area 4 and Planning Area 5 inthe TSSP. The Development Agreement was subsequently amended in 2012, and then amended andrestated on December 16, 2014. Since then, it has been further amended. 5th Amendment:On September 3, 2024, the council adopted an ordinance approving the 5thAmendment. The 5th Amendment increases the maximum combined tax rate, as defined in the 5thAmendment, from 1.65% to 1.75%.Background Information about the CFD and Improvement Area No. 1:The City Councilpreviously conducted proceedings under the Mello­Roos Community Facilities Act of 1982, (Mello­Roos Act), to form (i) “City of Fairfield Community Facilities District No. 2023­1 (One Lake PlanningArea 5)” (CFD), (ii) “Improvement Area No. 1 of the City of Fairfield Community Facilities District No.2023­1 (One Lake Planning Area 5)” (Improvement Area No. 1), and (iii) “City of Fairfield CommunityFacilities District No. 2023­1 (One Lake Planning Area 5) (Future Annexation Area)” (Future AnnexationArea). The City established the CFD pursuant to Resolution No. 2023­31 adopted on February 21, 2023(Resolution of Formation), and, among other things, provided for the levy of special taxes upon the landwithin the CFD and the improvement areas therein to finance certain public facilities and servicesdescribed in Exhibit A to the Resolution of Formation and approved a rate and method ofapportionment of special taxes for Improvement Area No. 1 (Improvement Area No. 1 Rate andMethod). In its Resolution No. 2023­32 adopted on February 21, 2023 (Resolution DeterminingNecessity), the council determined the necessity for the City to incur bonded indebtedness in one ormore series (i) on behalf of Improvement Area No. 1 in an aggregate amount not to exceed$90,000,000 (Improvement Area No. 1 Bonded Indebtedness Limit) and (ii) on behalf of those portionsof the CFD that are not included in Improvement Area No. 1 in an aggregate amount of not to exceed$15,000,000 (Non­Improvement Area No. 1 Bonded Indebtedness Limit); andAt an election of the qualified electors in Improvement Area No. 1 held on February 21, 2023, thequalified electors approved, among other things, the levy of special taxes according to the ImprovementArea No. 1 Rate and Method and the Improvement Area No. 1 Bonded Indebtedness Limit. Pursuant to Ordinance No. 2023­05, introduced by the council on February 21, 2023, and adopted onMarch 21, 2023, the council levied special taxes in Improvement Area No. 1 according to theImprovement Area No. 1 Rate and Method.All of the territory in the CFD as of the date hereof is located in Improvement Area No. 1.Proposed CFD Change Proceedings:Pursuant to a petition received by the City from One LakeHoldings LLC, which is the owner of 25% or more of the land within Improvement Area No. 1 that is notexempt from the special taxes, the City has been asked to (i) amend the Improvement Area No. 1 Rateand Method to increase the rate of the special taxes, (ii) increase the Improvement Area No. 1 BondedIndebtedness Limit from $90,000,000 to $100,000,000, and (iii) increase the Non­Improvement AreaNo. 1 Bonded Indebtedness Limit from $15,000,000 to $20,000,000.On September 3, 2024, the council adopted a resolution declaring its intention to undertake therequested change proceedings and calling a public hearing for October 15, 2024.The remaining “change proceedings” require a handful of steps:1. At tonight’s meeting, staff recommends that the council:a. Hold the public hearing. The City is obligated to halt the change proceedings as a result of a majorityprotest by the landowners in Improvement Area No. 1; the County has confirmed that there are noregistered voters in the CFD.b. The landowner electors in Improvement Area No. 1 have waived otherwise applicable time periodsfor the election, as permitted by the Mello­Roos Act; as a result, the City Council may conduct the mail ballot election immediately upon completion of the public hearing, which requires (1) the council to adopt a resolution calling the election, (2) the city clerk to open the ballots, and (3) the council to adopt a resolution declaring the results of the election.
c. If two­thirds of the votes cast on the proposition are in favor of the proposed changes, adopt a resolution determining that the amendment of the Improvement Area No. 1 Rate and Method and the increase in the Improvement Area No. 1 Bonded Indebtedness Limit are lawfully authorized, approving an increase in the Non­Improvement Area No. 1 Bonded Indebtedness Limit, and waiving the provision in the City’s adopted local goals and policies for community facilities districts requiring at least a four to one value to lien ratio for bonds issued by the City for the CFD and determining that the value to lien ratio for bonds issued by the City for the CFD shall be at least three to one, unless the City and the master developer of the One Lake project otherwise agree on a higher value to lien ratio. d. Introduce an ordinance levying the special taxes in Improvement Area No. 1 in accordance with the amended Improvement Area No. 1 Rate and Method.

2. The city clerk will record an amendment to the Notice of Special Tax Lien for Improvement Area No. 1 to reflect the amended Improvement Area No. 1 Rate and Method.

3. On November 19, 2024, the council will consider adoption of the ordinance levying the special taxes in Improvement Area No. 1 in accordance with the amended Improvement Area No. 1 Rate and Method.

As a separate matter on tonight’s agenda, Staff is recommending that the City authorize the initial series of bonds for the CFD with respect to Improvement Area No. 1.

General Plan and Specific Plan Consistency:The proposed change proceedings are consistent with the 5th Amendment.

Environmental Review:An Environmental Impact Report (EIR) was previously prepared and certified by the City for the TSSP in 2011. The City previously found that the impacts of development under the existing Development Agreement are within the scope of the EIR certified by the Council in 2011 for the TSSP. The proposed changes are consistent with the TSSP and do not pose environmental impacts greater than those found to be within the scope of the TSSP’s EIR.

FINANCIAL IMPACT
N/A
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
The City Council approved the 5th Amendment on September 3, 2024. The proposed changes to the CFD and Improvement Area No. 1 are intended to implement the 5th Amendment.

ALTERNATIVE ACTION
After holding the proposed public hearing, the council will have no obligation to complete the change proceedings. If the City Council decides not to undertake the change proceedings, the total tax maximum would remain at 1.65%, which would be inconsistent with the 5th Amendment.

STAFF CONTACT
John Furtado, Finance Director
(707) 428­7629
[email protected]
COORDINATED WITH
City Attorney's Office, City Manager's Office, Public Works Department ATTACHMENTS:

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Agenda Item No: 16.AGENDA REPORTDATE:October 15, 2024 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Public Hearing; and Resolutions 2024­254 Through 2024­256 and Ordinance 2024­09for Proceedings (Including a Landowner Election) to Amend and Restate the Rate andMethod of Apportionment of Special Tax for Improvement Area No. 1 of the City ofFairfield Community Facilities District No. 2023­1 (One Lake Planning Area 5) andIncrease the Amount of Bonded IndebtednessRECOMMENDED ACTIONHold public hearing, conduct a landowner election, adopt resolutions and introduce ordinance.STATEMENT OF ISSUEOn September 3, 2024, the City Council adopted an ordinance approving a 5th Amendment to theexisting Amended and Restated Development Agreement (5th Amendment) between the City andCanon Station, LLC. The current master developer of the One Lake Project is One Lake Holding LLC(Master Developer). The Amended and Restated Development Agreement covers approximately 1,570acres of land located approximately one­half mile east of Peabody Road on Vanden Road's west andeast sides. The 5th Amendment increases the maximum combined tax rate, as defined in the 5thAmendment, from a maximum of 1.65% to 1.75%. The rates set forth in the proposed amended rateand method to be considered with the change proceedings reflects the 1.75% limitation.This item relates to proposed change proceedings for City of Fairfield Community Facilities District No.2023­1 (One Lake Planning Area 5) that would implement the changes approved in the 5th Amendment.DISCUSSIONBackground Information About the Development Agreement:On August 16, 2011, the councilentered into a Development Agreement (Development Agreement) with Canon Station LLC regardingapproximately 1,570 acres within the Train Station Specific Plan (TSSP) Area. Canon Station LLC isthe master developer of the One Lake neighborhood, known as Planning Area 4 and Planning Area 5 inthe TSSP. The Development Agreement was subsequently amended in 2012, and then amended andrestated on December 16, 2014. Since then, it has been further amended. 5th Amendment:On September 3, 2024, the council adopted an ordinance approving the 5thAmendment. The 5th Amendment increases the maximum combined tax rate, as defined in the 5thAmendment, from 1.65% to 1.75%.Background Information about the CFD and Improvement Area No. 1:The City Councilpreviously conducted proceedings under the Mello­Roos Community Facilities Act of 1982, (Mello­Roos Act), to form (i) “City of Fairfield Community Facilities District No. 2023­1 (One Lake PlanningArea 5)” (CFD), (ii) “Improvement Area No. 1 of the City of Fairfield Community Facilities District No.2023­1 (One Lake Planning Area 5)” (Improvement Area No. 1), and (iii) “City of Fairfield CommunityFacilities District No. 2023­1 (One Lake Planning Area 5) (Future Annexation Area)” (Future AnnexationArea). The City established the CFD pursuant to Resolution No. 2023­31 adopted on February 21, 2023(Resolution of Formation), and, among other things, provided for the levy of special taxes upon the landwithin the CFD and the improvement areas therein to finance certain public facilities and servicesdescribed in Exhibit A to the Resolution of Formation and approved a rate and method ofapportionment of special taxes for Improvement Area No. 1 (Improvement Area No. 1 Rate andMethod). In its Resolution No. 2023­32 adopted on February 21, 2023 (Resolution DeterminingNecessity), the council determined the necessity for the City to incur bonded indebtedness in one ormore series (i) on behalf of Improvement Area No. 1 in an aggregate amount not to exceed$90,000,000 (Improvement Area No. 1 Bonded Indebtedness Limit) and (ii) on behalf of those portionsof the CFD that are not included in Improvement Area No. 1 in an aggregate amount of not to exceed$15,000,000 (Non­Improvement Area No. 1 Bonded Indebtedness Limit); andAt an election of the qualified electors in Improvement Area No. 1 held on February 21, 2023, thequalified electors approved, among other things, the levy of special taxes according to the ImprovementArea No. 1 Rate and Method and the Improvement Area No. 1 Bonded Indebtedness Limit. Pursuant to Ordinance No. 2023­05, introduced by the council on February 21, 2023, and adopted onMarch 21, 2023, the council levied special taxes in Improvement Area No. 1 according to theImprovement Area No. 1 Rate and Method.All of the territory in the CFD as of the date hereof is located in Improvement Area No. 1.Proposed CFD Change Proceedings:Pursuant to a petition received by the City from One LakeHoldings LLC, which is the owner of 25% or more of the land within Improvement Area No. 1 that is notexempt from the special taxes, the City has been asked to (i) amend the Improvement Area No. 1 Rateand Method to increase the rate of the special taxes, (ii) increase the Improvement Area No. 1 BondedIndebtedness Limit from $90,000,000 to $100,000,000, and (iii) increase the Non­Improvement AreaNo. 1 Bonded Indebtedness Limit from $15,000,000 to $20,000,000.On September 3, 2024, the council adopted a resolution declaring its intention to undertake therequested change proceedings and calling a public hearing for October 15, 2024.The remaining “change proceedings” require a handful of steps:1. At tonight’s meeting, staff recommends that the council:a. Hold the public hearing. The City is obligated to halt the change proceedings as a result of a majorityprotest by the landowners in Improvement Area No. 1; the County has confirmed that there are noregistered voters in the CFD.b. The landowner electors in Improvement Area No. 1 have waived otherwise applicable time periodsfor the election, as permitted by the Mello­Roos Act; as a result, the City Council may conduct the mailballot election immediately upon completion of the public hearing, which requires (1) the council toadopt a resolution calling the election, (2) the city clerk to open the ballots, and (3) the council to adopt aresolution declaring the results of the election. c. If two­thirds of the votes cast on the proposition are in favor of the proposed changes, adopt aresolution determining that the amendment of the Improvement Area No. 1 Rate and Method and theincrease in the Improvement Area No. 1 Bonded Indebtedness Limit are lawfully authorized, approvingan increase in the Non­Improvement Area No. 1 Bonded Indebtedness Limit, and waiving the provisionin the City’s adopted local goals and policies for community facilities districts requiring at least a four toone value to lien ratio for bonds issued by the City for the CFD and determining that the value to lienratio for bonds issued by the City for the CFD shall be at least three to one, unless the City and themaster developer of the One Lake project otherwise agree on a higher value to lien ratio.d. Introduce an ordinance levying the special taxes in Improvement Area No. 1 in accordance with theamended Improvement Area No. 1 Rate and Method.2. The city clerk will record an amendment to the Notice of Special Tax Lien for Improvement Area No. 1to reflect the amended Improvement Area No. 1 Rate and Method.3. On November 19, 2024, the council will consider adoption of the ordinance levying the special taxesin Improvement Area No. 1 in accordance with the amended Improvement Area No. 1 Rate and Method.As a separate matter on tonight’s agenda, Staff is recommending that the City authorize the initialseries of bonds for the CFD with respect to Improvement Area No. 1.General Plan and Specific Plan Consistency:The proposed change proceedings are consistentwith the 5th Amendment. Environmental Review:An Environmental Impact Report (EIR) was previously prepared and certifiedby the City for the TSSP in 2011. The City previously found that the impacts of development under theexisting Development Agreement are within the scope of the EIR certified by the Council in 2011 for theTSSP. The proposed changes are consistent with the TSSP and do not pose environmental impactsgreater than those found to be within the scope of the TSSP’s EIR.FINANCIAL IMPACTN/APUBLIC CONTACT/ADVISORY BODY RECOMMENDATIONThe City Council approved the 5th Amendment on September 3, 2024. The proposed changes to theCFD and Improvement Area No. 1 are intended to implement the 5th Amendment.ALTERNATIVE ACTIONAfter holding the proposed public hearing, the council will have no obligation to complete the changeproceedings. If the City Council decides not to undertake the change proceedings, the total taxmaximum would remain at 1.65%, which would be inconsistent with the 5th Amendment.STAFF CONTACTJohn Furtado, Finance Director (707) 428­[email protected] WITHCity Attorney's Office, City Manager's Office, Public Works Department ATTACHMENTS:

Description
Attachment 1: Resolution Calling a Special Election
Attachment 2: Resolution Calling a Special Election Exhibit A Attachment 3: Resolution Declaring Results
Attachment 4: Resolution Declaring Results Exhibit A
Attachment 5: Resolution of Change
Attachment 6: Resolution of Change Exhibit A
Attachment 7: Ordinance
REVIEWERS:

Reviewer Action Date
Beavers, Esther Approved 10/8/2024 ­ 8:10 AM
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CITY OF FAIRFIELD

RESOLUTION NO. 2024-254

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD CALLING A SPECIAL ELECTION

TO AMEND AND RESTATE THE RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR IMPROVEMENT AREA NO. 1 AND INCREASE THE AUTHORIZED PRINCIPAL AMOUNT OF BONDED INDEBTEDNESS FOR IMPROVEMENT AREA NO. 1

CITY OF FAIRFIELD
Community Facilities District No. 2023-1
(One Lake Planning Area 5)

WHEREAS, the City Council of the City of Fairfield (the “City”) previously conducted proceedings under and pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5 (commencing with Section 53311) of the California Government Code (the “Act”), to form (i) “City of Fairfield Community Facilities District No. 2023- 1 (One Lake Planning Area 5)” (the “CFD”), (ii) “Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5)” (“Improvement Area No. 1”), and (iii) “City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) (Future Annexation Area)” (the “Future Annexation Area”); and

WHEREAS, all of the territory in the CFD as of the date hereof is located in Improvement Area No. 1; and

WHEREAS, in the City Council's Resolution No. 2023-31 adopted on February 21, 2023 (the “Resolution of Formation”), the City Council, among other things, approved the boundaries of the CFD, Improvement Area No. 1 and the Future Annexation Area, as set forth in the map recorded in the Solano County Recorder’s Office on February 7, 2023, at 3:11 p.m. in Book 26 of Maps of Assessment and Community Facilities Districts at Page 64, as Document No. 202300005079 (the “Boundary Map”); and

WHEREAS, in the Resolution of Formation, the City Council, among other things, provided for the levy of special taxes upon the land within the CFD and the improvement areas therein to finance certain public facilities and services described in Exhibit A to the Resolution of Formation and approved a rate and method of apportionment of special taxes for Improvement Area No. 1 (the “Improvement Area No. 1 Rate and Method”); and

WHEREAS, in the City Council’s Resolution No. 2023-32 adopted on February 21, 2023 (the “Resolution Determining Necessity”), the City Council determined the necessity for the City to incur bonded indebtedness in one or more series (i) on behalf of Improvement Area No. 1 in an aggregate amount not to exceed $90,000,000 (the “Improvement Area No. 1 Bonded Indebtedness Limit”) and (ii) on behalf of those portions of the CFD that are not included in Packet Page 467 of 530Attachment 1 Page 1 of 6

RES. NO. 2024-254

Improvement Area No. 1 in an aggregate amount of not to exceed $15,000,000 (the “Non - Improvement Area No. 1 Bonded Indebtedness Limit”); and

WHEREAS, at an election of the qualified electors in Improvement Area No. 1 held on February 21, 2023, the qualified electors approved, among other things, the levy of special taxes according to the Improvement Area No. 1 Rate and Method and the Improvement Area No. 1 Bonded Indebtedness Limit; and

WHEREAS, a Notice of Special Tax Lien, which included the Improvement Area No. 1 Rate and Method as Exhibit B (the “Notice of Special Tax Lien”), was recorded in the real property records of Solano County on March 6, 2023, as Document No. 202300009062; and

WHEREAS, pursuant to Ordinance No. 2023-05, introduced by the City Council on February 21, 2023, and adopted on March 21, 2023, the City Council levied special taxes in Improvement Area No. 1 according to the Improvement Area No. 1 Rate and Method and on any parcels in the Future Annexation Area that are annexed into a Future Improvement Area pursuant to the Act at the rate and in accordance with the formula approved by the qualified electors in the Future Improvement Areas in the manner required by the Act; and

WHEREAS, pursuant to a petition received by the City, the City has been asked by the owner(s) of the required percentage of property in Improvement Area No. 1 to (i) amend the Improvement Area No. 1 Rate and Method to increase the rate of the special taxes , (ii) increase the Improvement Area No. 1 Bonded Indebtedness Limit from $90,000,000 to $100,000,000, and (iii) increase the Non-Improvement Area No. 1 Bonded Indebtedness Limit from $15,000,000 to $20,000,000; and

WHEREAS, on September 3, 2024, the City Council adopted its Resolution No. 2024-222, entitled “Resolution of the City Council of the City of Fairfield Considering the Proposed Amendment and Restatement of the Rate and Method of Apportionment of Special Tax for Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) and an Increase in the Amount of Bonded Indebtedness, Approving an Amended and Restated Deposit Agreement, and Approving Other Matters Related Thereto” (the “Resolution of Consideration”), pursuant to which the City Council, among other things (i) approved an increase in the Improvement Area No. 1 Indebtedness Limit to $100,000,000 (the “Amended Improvement Area No. 1 Bonded Indebtedness Limit”), subject to approval by two -thirds of the votes cast on the proposition of the Amended Improvement Area No. 1 Bonded indebtedness Limit at an election of the qualified electors in Improvement Area No. 1 and (ii) approved the proposed amended and restated Improvement Area No. 1 Rate and Method (the “Amended and Restated Improvement Area No. 1 Rate and Method”) in the form attached as Exhibit A to the Resolution of Consideration, subject to approval by two -thirds of the votes cast on the Packet Page 468 of 530Attachment 1 Page 2 of 6

RES. NO. 2024-254

proposition of amending and restating the Improvement Area No. 1 Rate and Method at an election of the qualified electors in Improvement Area No. 1; and

WHEREAS, pursuant to the Resolution of Consideration, the City Council also approved the proposed increase in the Non-Improvement Area No. 1 Bonded Indebtedness Limit to $20,000,000, and further resolved that, as provided by the City Council in the Resolution Determining Necessity, (i) the designation as an improvement area of any territory annexing to the CFD, the maximum amount of bonded indebtedness for such improvement area, the rate and method of apportionment of special tax for such improvement area and the appropriations limit for the CFD shall be specified and approved in the unanimous approval executed by property owners in connection with their annexation to the CFD, subject to the conditions set forth in the Resolution of Formation and (ii) in the event all or a portion of the Future Annexation Area is annexed as one or more Future Improvement Areas (as defined in the Resolution Determining Necessity), the maximum bonded indebtedness of each such Future Improvement Area shall be identified in the unanimous approval of the property owners of the property to be annexed at the time of the annexation, as set forth in the Resolution of Formation, and t he amount of the maximum bonded indebtedness for the Future Improvement Area shall be subtracted from the Non-Improvement Area No. 1 Bonded Indebtedness Limit; and

WHEREAS, pursuant to the Resolution of Consideration, the City Council set a public hearing for October 15, 2024; and

WHEREAS, the City Clerk caused to be published in a newspaper of general circulation published in the area of the CFD a notice of the public hearing, stating that the Council will hold a public hearing on the proposed amendment and restatement of the Improvement Area No.1 Rate and Method, the proposed increase of the Improvement Area No. 1 Bonded Indebtedness Limit from $90,000,000 to $100,000,000, and the proposed increase of the Non -Improvement Area No. 1 Bonded Indebtedness Limit from $15,000,000 to $20,000,000; and

WHEREAS, the public hearing was held on this date, and the proposals described in the Resolution of Consideration were not opposed by more than 50% of the owners of land not exempt from the special tax within Improvement Area No. 1; the County has confirmed that there are no registered voters in Improvement Area No. 1; and

WHEREAS, Government Code Section 53338 authorizes the holding of a special election of the qualified electors in Improvement Area No. 1 on the issues of (i) approving the Amended and Restated Improvement Area No. 1 Rate and Method and (ii) approving the Amended Improvement Area No. 1 Bonded Indebtedness Limit.

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RES. NO. 2024-254

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. As authorized by Section 53338 of the Act, the proposition to approve the Amended and Restated Improvement Area No. 1 Rate and Method and the Amended Improvement Area No. 1 Bonded Indebtedness Limit shall be placed upon a ballot, the form of which is attached hereto as Exhibit “A” and by this reference incorporated herein. Said form of the ballot is hereby approved. As authorized by Section 53353.5 of the Act, the two propositions described in this Section above shall be combined into a single ballot measu re for Improvement Area No. 1.

Section 2. This City Council hereby finds that fewer than 12 persons have been registered to vote within Improvement Area No. 1 for each of the 90 days preceding the close of the public hearing heretofore conducted and concluded by this City Council for the purposes of these proceedings. Accordingly, and pursuant to the Act, this City Council finds that for purposes of these proceedings, the qualified electors are the landowners within Improvement Area No. 1 and that the vote shall be by said landowners or their authorized representatives, each having one vote for each acre or portion thereof such landowner owns in Improvement Area No. 1 as of the close of the public hearing that is not exempt from the special tax.

Section 3. This City Council hereby calls a special mail ballot election to consider the measures described in paragraph 1 above, which election shall be held in the City Council meeting room on October 15, 2024, at 6:00 p.m. or as soon thereafter as is practic able, and the results thereof canvassed at the meeting of this City Council on October 15, 2024 or a later date as may be directed by the Council. The City Clerk is hereby designated as the official to conduct the said election and to receive all ballots until the close of business on the election date.

This Council hereby further finds that the provisions of Section 53326 of the Act requiring a minimum period of time before holding the special election are for the protection of the qualified electors of Improvement Area No. 1. There are on file with the Clerk written waivers executed by all of the qualified electors of Improvement Area No. 1 allowing for a shortening of the time for the special election and waiving any requirement for notice, analysis, and arguments in connection with the election. Accordingly, this City Council finds and determines that the qualified electors have been fully apprised of and have agreed to the shortened time for the election and waiver of analysis and arguments and have thereby been fully protected in these proceedings. This City Council also finds and determines that the City Clerk has concurred with the shortened time for the election. Analysis and arguments with respect to the ballot measures are hereby waived, as provided in Section 53327 of the Act.

Section 4. It is hereby acknowledged that the City Clerk has on file the Resolution of Consideration, a certified map of the boundaries of Improvement Area No. 1, and a sufficient description to allow the City Clerk to determine the qualified electors of Improvement Area No.

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RES. NO. 2024-254

1. Pursuant to Section 53327 of the Act, the election shall be conducted by messenger or mail - delivered ballot pursuant to Section 4000 of the California Elections Code, except that Sections 53326 and 53327 of the Act shall govern for purposes of determining the date of election.

Section 5. This City Council acknowledges that the City Clerk will cause to be delivered to each of the qualified electors within Improvement Area No. 1 a ballot in the form set forth in Exhibit “A.” Each ballot shall indicate the number of votes to be cast by the respective landowner to which it pertains.

Each ballot will be accompanied by all supplies and written instructions necessary for the use and return of the ballot. The envelope to be used to return the ballot will be enclosed with the ballot, have the return postage prepaid, and shall contain the following: (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, stating that the voter is the owner of record or authorized representative of the landowner entitled to vote and is the person whose name appears on the envelope, (c) the printed name, signature and address of the voter, (d) the date of signing and place of execution of the declaration pursuant to clause (b) above, and (e) a notice that the envelope contains an official ballot and is to be opened only by the canvassing official.

Section 6. The City Council hereby finds that the proposed issuance of bonds and other debt for Improvement Area No. 1 constitutes a “local bond measure” within the meaning of Sections 53410, et seq. of the California Government Code. As a result, the bond measure shall include the propositions set forth above and the following: (a) the specific purpose of the bonds and other debt shall be as set forth in the propositions; (b) any proceeds received from the sale of any bonds and other debt shall be applied only to the purposes set forth in the propositions; (c) the proceeds of any bonds and other debt shall be deposited into special accounts to be created therefor as part of the issuance of the bonds and other debt; and (d) the City shall cause a report to be prepared annually under Section 53411 of the Government Code.

Under Section 50075.1 of the Government Code, the following accountability provisions shall apply to the special taxes: (a) the provision and/or acquisition of the Facilities and the Services, the payment of debt service on the bonds and other debt and the incidental costs thereof, all as defined in the Resolution of Formation, shall constitute the specific single purpose; (b) the proceeds shall be applied only to the specific purposes identified in (a) above; (c) there shall be created special account(s) or funds(s) into which the proceeds shall be deposited; and (d) there shall be caused to be prepared an annual audit and report of the CFD.

Section 7. The voted ballots shall be returned to the City Clerk no later than 6:00 p.m. on October 15, 2024. The City Clerk shall accept the ballots of the qualified electors in the meeting room of the City Council, whether said ballots be personally delivered or received by mail. The Packet Page 471 of 530Attachment 1 Page 5 of 6

RES. NO. 2024-254

City Clerk shall have available ballots which may be marked at said location on the election day by said qualified electors.

Section 8. The Mayor, the City Manager, the Finance Director, the City Clerk and all other officers and agents of the City are hereby authorized and directed to take all actions necessary or advisable to give effect to the transactions co ntemplated by this Resolution.

Section 9. This Resolution shall take effect upon its adoption.

PASSED AND ADOPTED this 15th day of October 2024, by the following vote:

AYES: MEMBERS: MOY/BERTANI/CARR/PANDURO/TONNESEN/VACCARO/WILLIAMS NOES: MEMBERS: _________________________________________________ ABSENT: MEMBERS: _________________________________________________ ABSTAIN: MEMBERS: _________________________________________________

_________________________________________________
MAYOR
ATTEST:
___________________________

CITY CLERK

Packet Page 472 of 530Attachment 1 Page 6 of 6

A-1

EXHIBIT A

FORM OF BALLOT

CITY OF FAIRFIELD
Community Facilities District No. 2023-1
(One Lake Planning Area 5)

This ballot is for a special, landowner election. You must return this ballot in the enclosed postage paid envelope to the office of the City Clerk of the City of Fairfield no later than the hour of 6:00 p.m. on October 15, 2024, either by mail or in person. The City Clerk’s office is located at 1000 Webster Street, Fairfield, California 94533.

To vote, mark a cross (X) on the voting line after the word “YES” or after the word “NO”.

All marks otherwise made are forbidden. All distinguishing marks are f orbidden and make the ballot void.

If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Fairfield and obtain another.

Shall the following measure be adopted: authorizing the City of Fairfield (the “City”) to (i) levy a special tax solely on lands within Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) (“Improvement Area”) in accordance with (including the rate and duration specified in) the Amended and Restated Rate and Method of Apportionment of Special Tax (“Amended and Restated Rate and Method”) attached as Exhibit A to City Council Resolution No. 2024- 222 (“Resolution of Consideration”), commencing in the City’s fiscal year 2025-26 (with annual escalation thereafter), to pay debt service on bonds and other debt, to pay for the public facilities and the public services specified in City Council Resolution No. 2023-31 (“Resolution of Formation”), and to pay the costs of the City in administering the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) (“CFD”), which special tax, if levied at the maximum rate and assuming full build-out of the properties in the Improvement Area as of October 15, 2024, is anticipated to raise $4,577,994 in fiscal year 2025-26 (with annual escalation thereafter); and (ii) issue bonds (“bonds”) in the maximum aggregate principal amount of $100,000,000 and other debt for the CFD with respect to the Improvement Area, with interest at a rate or rates not to exceed the maximum interest rate permitted by law at the time of sale of such bonds or issuance of such debt, the proceeds of which bonds and other debt will be used to acquire and/or construct certain facilities, reimburse certain costs of the facilities paid prior to the date of issuance of the bonds, and pay for the costs of issuing the bonds and related expenses?

YES: __________

NO: __________
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A-2

The undersigned is the landowner or the authorized representative of the landowner and is legally authorized and entitled to cast this ballot on behalf of the landowner, and certifies that the landowner has received and reviewed all the proceedings leading up to this election. The undersigned acknowledges that this election is being undertaken at the request and for the benefit of the landowner, including, but not limited to, the Resolution of Formation, the Resolution of Consideration and the Amended and Restated Rate and Method. The undersigned knowingly and voluntarily waives any and all rights it may have with respect to the election proceedings as of the date hereof.

Number of Votes: ____

Property Owned by Property Owner: _________________________

The Property Owner is:

By:

Name:

Title:

Packet Page 474 of 530Attachment 2 Page 2 of 2

CITY OF FAIRFIELD

RESOLUTION NO. 2024-255

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD DECLARING RESULTS OF A

SPECIAL ELECTION TO AMEND AND RESTATE THE RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR IMPROVEMENT AREA NO. 1 AND INCREASE THE AUTHORIZED PRINCIPAL AMOUNT OF BONDED INDEBTEDNESS FOR IMPROVEMENT AREA NO. 1

CITY OF FAIRFIELD
Community Facilities District No. 2023-1
(One Lake Planning Area 5)

WHEREAS, the City Council of the City of Fairfield (the “City”) previously conducted proceedings under and pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5 (commencing with Section 53311) of the California Government Code (the “Act”), to form (i) “City of Fairfield Community Facilities District No. 2023- 1 (One Lake Planning Area 5)” (the “CFD”), (ii) “Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5)” (“Improvement Area No. 1”), and (iii) “City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) (Future Annexation Area)” (the “Future Annexation Area”); and

WHEREAS, all of the territory in the CFD as of the date hereof is located in Improvement Area No. 1; and

WHEREAS, in the City Council's Resolution No. 2023-31 adopted on February 21, 2023 (the “Resolution of Formation”), the City Council, among other things, approved the boundaries of the CFD, Improvement Area No. 1 and the Future Annexation Area, as set forth in the map recorded in the Solano County Recorder’s Office on February 7, 2023, at 3:11 p.m. in Book 26 of Maps of Assessment and Community Facilities Districts at Page 64, as Document No. 202300005079 (the “Boundary Map”); and

WHEREAS, in the Resolution of Formation, the City Council, among other things, provided for the levy of special taxes upon the land within the CFD and the improvement areas therein to finance certain public facilities and services described in Exhibit A to the Resolution of Formation and approved a rate and method of apportionment of special taxes for Improvement Area No. 1 (the “Improvement Area No. 1 Rate and Method”); and

WHEREAS, in the City Council’s Resolution No. 2023-32 adopted on February 21, 2023 (the “Resolution Determining Necessity”), the City Council determined the necessity for the City to incur bonded indebtedness in one or more series (i) on behalf of Improvement Area No. 1 in an aggregate amount not to exceed $90,000,000 (the “Improvement Area No. 1 Bonded Indebtedness Limit”) and (ii) on behalf of those portions of the CFD that are not included in Packet Page 475 of 530Attachment 3 Page 1 of 5

RES. NO. 2024-255

Improvement Area No. 1 in an aggregate amount of not to exceed $15,000,000 (the “Non - Improvement Area No. 1 Bonded Indebtedness Limit”); and

WHEREAS, at an election of the qualified ele ctors in Improvement Area No. 1 held on February 21, 2023, the qualified electors approved, among other things, the levy of special taxes according to the Improvement Area No. 1 Rate and Method and the Improvement Area No. 1 Bonded Indebtedness Limit; and

WHEREAS, a Notice of Special Tax Lien, which included the Improvement Area No. 1 Rate and Method as Exhibit B (the “Notice of Special Tax Lien”), was recorded in the real property records of Solano County on March 6, 2023, as Document No. 202300009062; and

WHEREAS, pursuant to Ordinance No. 2023-05, introduced by the City Council on February 21, 2023, and adopted on March 21, 2023, the City Council levied special taxes in Improvement Area No. 1 according to the Improvement Area No. 1 Rate and Method and on any parcels in the Future Annexation Area that are annexed into a Future Improvement Area pursuant to the Act at the rate and in accordance with the formula approved by the qualified electors in the Future Improvement Areas in the manner required by the Act; and

WHEREAS, pursuant to a petition received by the City, the City has been asked by the owner(s) of the required percentage of property in Improvement Area No. 1 to (i) amend the Improvement Area No. 1 Rate and Method to increase the rate of the special taxes, (ii) increase the Improvement Area No. 1 Bonded Indebtedness Limit from $90,000,000 to $100,000,000, and (iii) increase the Non-Improvement Area No. 1 Bonded Indebtedness Limit from $15,000,000 to $20,000,000; and

WHEREAS, on September 3, 2024, the City Council adopted its Resolution No. 2024-222, entitled “Resolution of the City Council of the City of Fairfield Considering the Proposed Amendment and Restatement of the Rate and Method of Apportionment of Special Tax for Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) and an Increase in the Amount of Bonded Indebtedness, Approving an Amended and Restated Deposit Agreement, and Approving Other Matters Related Thereto” (the “Resolution of Consideration”), pursuant to which the City Council, among other things (i) approved an increase in the Improvement Area No. 1 Indebtedness Limit to $100,000,000 (the “Amended Improvement Area No. 1 Bonded Indebtedness Limit”), subject to approval by two -thirds of the votes cast on the proposition of the Amended Improvement Area No. 1 Bonded indebtedness Limit at an election of the qualified electors in Improvement Are a No. 1 and (ii) approved the proposed amended and restated Improvement Area No. 1 Rate and Method (the “Amended and Restated Improvement Area No. 1 Rate and Method”) in the form attached as Exhibit A to the Resolution of Consideration, subject to approval by two-thirds of the votes cast on the Packet Page 476 of 530Attachment 3 Page 2 of 5

RES. NO. 2024-255

proposition of amending and restating the Improvement Area No. 1 Rate and Method at an election of the qualified electors in Improvement Area No. 1; and

WHEREAS, pursuant to the Resolution of Consideration, the Cit y Council also approved the proposed increase in the Non-Improvement Area No. 1 Bonded Indebtedness Limit to $20,000,000, and further resolved that, as provided by the City Council in the Resolution Determining Necessity, (i) the designation as an improvement area of any territory annexing to the CFD, the maximum amount of bonded indebtedness for such improvement area, the rate and method of apportionment of special tax for such improvement area and the appropriations limit for the CFD shall be specified and approved in the unanimous approval executed by property owners in connection with their annexation to the CFD, subject to the conditions set forth in the Resolution of Formation and (ii) in the event all or a portion of the Future Annexation Area is annexed as one or more Future Improvement Areas (as defined in the Resolution Determining Necessity), the maximum bonded indebtedness of each such Future Improvement Area shall be identified in the unanimous approval of the property owners of the property to b e annexed at the time of the annexation, as set forth in the Resolution of Formation, and the amount of the maximum bonded indebtedness for the Future Improvement Area shall be subtracted from the Non-Improvement Area No. 1 Bonded Indebtedness Limit; and

WHEREAS, pursuant to the Resolution of Consideration, the City Council set a public hearing for October 15, 2024; and

WHEREAS, the City Clerk caused to be published in a newspaper of general circulation published in the area of the CFD a notice of the public hearing, stating that the Council will hold a public hearing on the proposed amendment and restatement of the Improvement Area No.1 Rate and Method, the proposed increase of the Improvement Area No. 1 Bonded Indebtedness Limit from $90,000,000 to $100,000,000, and the proposed increase of the Non-Improvement Area No. 1 Bonded Indebtedness Limit from $15,000,000 to $20,000,000; and

WHEREAS, the public hearing was held on this date, and the proposed amendment and restatement of the Improvement Area No.1 Rate and Method and the proposed increase of the Improvement Area No. 1 Bonded Indebtedness Limit from $90,000,000 to $100,000,000 was not opposed by more than 50% of the owners of land not exempt from the special tax within Improvement Area No. 1; the County has confirmed that there are no registered voters in Improvement Area No. 1; and

WHEREAS, Government Code Section 53338 authorizes the holding of a special election of the qualified electors in Improvement Area No. 1 on the issue of (i) approving the Amended and Restated Improvement Area No. 1 Rate and Method and (ii) approving the Amended Improvement Area No. 1 Bonded Indebtedness Limit ; and

Packet Page 477 of 530Attachment 3 Page 3 of 5

RES. NO. 2024-255

WHEREAS, following the public hearing, the City Council adopted a resolution entitled "Resolution of the City Council of the City of Fairfield Calling a Special Election To Amend and Restate the Rate and Method of Apportionment of Special Tax for Improvement Area No. 1 and Increase the Authorized Principal Amount of Bonded Indebtedness for Improvement Area No. 1," calling for a special landowner election of the qualified electors within Improvement Area No. 1 to be held on October 15, 2024; and

WHEREAS, the special election was held on October 15, 2024, and the ballots were submitted to the City Clerk as the official conducting the election; and

WHEREAS, the Clerk has completed a Canvass and Statement of Results of Election (Canvass), a copy of which is attached as Exhibit “A”, and the City Council hereby approves the Canvass.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The issues presented at the October 15, 2024, special election were the approval of the Amended and Restated Improvement Area No. 1 Rate and Method and the approval of the Amended Improvement Area No. 1 Bonded Indebtedness Limit.

Section 2. Pursuant to said Canvass on file with the Clerk, the issues presented at the special election were approved by the qualified electors within Improvement Area No. 1 by more than two-thirds (2/3) of the votes cast at the special election.

Section 3. It is hereby found that all prior proceedings and actions taken by this City Council with respect to Improvement Area No. 1 were valid and in conformity with the Act.

Section 4. This Resolution shall take effect upon its adoption.

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RES. NO. 2024-255

PASSED AND ADOPTED this 15th day of October 2024, by the following vote:

AYES: MEMBERS: MOY/BERTANI/CARR/PANDURO/TONNESEN/VACCARO/WILLIAMS NOES: MEMBERS: _________________________________________________ ABSENT: MEMBERS: _________________________________________________ ABSTAIN: MEMBERS: _________________________________________________

_________________________________________________
MAYOR
ATTEST:
___________________________

CITY CLERK

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A-1

EXHIBIT A

CANVASS AND STATEMENT OF RESULT OF ELECTION

CITY OF FAIRFIELD
Community Facilities District No. 2023-1
(One Lake Planning Area 5)

I hereby certify that on October 15, 2024, I canvassed the returns of the election held on October 15, 2024, in Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5), and the total number of ballots cast and the total number of votes cast for and against the measure are as follows, and the totals as shown for and against the measure are full, true and correct:

Qualified
Landowner
Votes
Votes
Cast YES NO
City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) Special Election - October 15, 2024 162 ____ ____

BALLOT MEASURE: Shall the following measure be adopted: authorizing the City of Fairfield (the “City”) to (i) levy a special tax solely on lands within Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) (“Improvement Area”) in accordance with (including the rate and duration specified in) the Amended and Restated Rate and Method of Apportionment of Special Tax (“Amended and Restated Rate and Method”) attached as Exhibit A to City Council Resolution No. 2024-222 (“Resolution of Consideration”), commencing in the City’s fiscal year 2025-26 (with annual escalation thereafter), to pay debt service on bonds and other debt, to pay for the public facilities and the public services specified in City Council Resolution No. 2023-31 (“Resolution of Formation”), and to pay the costs of the City in administering the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) (“CFD”), which special tax, if levied at the maximum rate and assuming full build-out of the properties in the Improvement Area as of October 15, 2024, is anticipated to raise $4,577,994 in fiscal year 2025 -26 (with annual escalation thereafter); and (ii) issue bonds (“bonds”) in the maximum aggregate principal amount of $100,000,000 and other debt for the CFD with respect to the Improvement Area, with interest at a rate or rates not to exceed the maximum interest rate permitted by law at the time of sale of such bonds or issuance of such debt, the proceeds of which bonds and other debt will be used to acquire and/or construct certain facilities, reimburse certain costs of the facilities paid prior to the date of issuance of the bonds, and pay for the costs of issuing the bonds and related expenses?

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A-2

IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND THIS 15th DAY OF OCTOBER 2024.

By: _______________________________________________

CITY CLERK

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CITY OF FAIRFIELD

RESOLUTION NO. 2024-256

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD DETERMINING THAT AN

AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR IMPROVEMENT AREA NO. 1 AND AN INCREASE IN THE AUTHORIZED PRINCIPAL AMOUNT OF BONDED INDEBTEDNESS FOR IMPROVEMENT AREA NO. 1 ARE LAWFULLY AUTHORIZED, APPROVING AN INCREASE IN THE NON-IMPROVEMENT AREA NO. 1 BONDED INDEBTEDNESS LIMIT, AND WAIVING PROVISIONS OF THE CITY’S AMENDED AND RESTATED STATEMENT OF

GOALS AND POLICIES CONCERNING USE OF THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982, AS AMENDED

CITY OF FAIRFIELD
Communities Facilities District No. 2023-1
(One Lake Planning Area 5)

WHEREAS, the City Council of the City of Fairfield (the “City”) previously conducted proceedings under and pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5 (commencing with Section 53311) of the California Government Code (the “Act”), to form (i) “City of Fairfield Community Facilities District No. 2023- 1 (One Lake Planning Area 5)” (the “CFD”), (ii) “Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5)” (“Improvement Area No. 1”), and (iii) “City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) (Future Annexation Area)” (the “Future Annexation Area”); and

WHEREAS, all of the territory in the CFD as of the date hereof is located in Improvement Area No. 1; and

WHEREAS, in the City Council's Resolution No. 2023-31 adopted on February 21, 2023 (the “Resolution of Formation”), the City Council, among other things, approved the boundaries of the CFD, Improvement Area No. 1 and the Future Annexation Area, as set forth in th e map recorded in the Solano County Recorder’s Office on February 7, 2023, at 3:11 p.m. in Book 26 of Maps of Assessment and Community Facilities Districts at Page 64, as Document No. 202300005079 (the “Boundary Map”); and

WHEREAS, in the Resolution of Formation, the City Council, among other things, provided for the levy of special taxes upon the land within the CFD and the improvement areas therein to finance certain public facilities and services described in Exhibit A to the Resolution of Formation and approved a rate and method of apportionment of special taxes for Improvement Area No. 1 (the “Improvement Area No. 1 Rate and Method”); and

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RES. NO. 2024-256

WHEREAS, in the City Council’s Resolution No. 2023-32 adopted on February 21, 2023 (the “Resolution Determining Necessity”), the City Council determined the necessity for the City to incur bonded indebtedness in one or more series (i) on behalf of Improvement Area No. 1 in an aggregate amount not to exceed $90,000,000 (the “Improvement Area No. 1 Bonded Indebtedness Limit”) and (ii) on behalf of those portions of the CFD that are not included in Improvement Area No. 1 in an aggregate amount of not to exceed $15,000,000 (the “Non - Improvement Area No. 1 Bonded Indebtedness Limit”); and

WHEREAS, at an election of the qualified electors in Improvement Area No. 1 held on February 21, 2023, the qualified electors approved, among other things, the levy of special taxes according to the Improvement Area No. 1 Rate and Method and the Improvement Area No. 1 Bonded Indebtedness Limit; and

WHEREAS, a Notice of Special Tax Lien, which included the Improvement Area No. 1 Rate and Method as Exhibit B (the “Notice of Special Tax Lien”), was recorded in the real property records of Solano County on March 6, 2023, as Document No. 202300009062; and

WHEREAS, pursuant to Ordinance No. 2023-05, introduced by the City Council on February 21, 2023, and adopted on March 21, 2023, the City Council levied special taxes in Improvement Area No. 1 according to the Improvement Area No. 1 Rate and Method and on any parcels in the Future Annexation Area that are annexed into a Future Improvement Area pursuant to the Act at the rate and in accordance with the formula approved by the qualified electors in the Future Improvement Areas in the manner required by the Act; and

WHEREAS, pursuant to a petition received by the City, the City has been asked by the owner(s) of the required percentage of property in Improvement Area No. 1 to (i) amend the Improvement Area No. 1 Rate and Method to increase the rate of the special taxes, (ii) increase the Improvement Area No. 1 Bonded Indebtedness Limit from $90,000,000 to $100,000,000, and (iii) increase the Non-Improvement Area No. 1 Bonded Indebtedness Limit from $15,000,000 to $20,000,000; and

WHEREAS, on September 3, 2024, the City Council adopted its Resolution No. 2024-222, entitled “Resolution of the City Council of the City of Fairfield Considering the Proposed Amendment and Restatement of the Rate and Method of Apportionment of Special Tax for Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) and an Increase in the Amount of Bonded Indebtedness, Approving an Amended and Restated Deposit Agreement, and Approving Other Matters Related Thereto” (the “Resolution of Consideration”), pursuant to which the City Council, among other things (i) approved an increase in the Improvement Area No. 1 Indebtedness Limit to $100,000,000 (th e “Amended Improvement Area No. 1 Bonded Indebtedness Limit”), subject to approval by two -thirds of the votes cast on the proposition of the Amended Improvement Area No. 1 Bonded indebtedness Packet Page 483 of 530Attachment 5 Page 2 of 6

RES. NO. 2024-256

Limit at an election of the qualified electors in Improvement Ar ea No. 1 and (ii) approved the proposed amended and restated Improvement Area No. 1 Rate and Method (the “Amended and Restated Improvement Area No. 1 Rate and Method”) in the form attached as Exhibit A to the Resolution of Consideration, subject to approval by two-thirds of the votes cast on the proposition of amending and restating the Improvement Area No. 1 Rate and Method at an election of the qualified electors in Improvement Area No. 1; and

WHEREAS, pursuant to the Resolution of Consideration, the City Council also approved the proposed increase in the Non-Improvement Area No. 1 Bonded Indebtedness Limit to $20,000,000, and further resolved that, as provided by the City Council in the Resolution Determining Necessity, (i) the designation as an improvement area of any territory annexing to the CFD, the maximum amount of bonded indebtedness for such improvement area, the rate and method of apportionment of special tax for such improvement area and the appropriations limit for the CFD shall be specified and approved in the unanimous approval executed by property owners in connection with their annexation to the CFD, subject to the conditions set forth in the Resolution of Formation and (ii) in the event all or a portion of the Future Annexation Area is annexed as one or more Future Improvement Areas (as defined in the Resolution Determining Necessity), the maximum bonded indebtedness of each such Future Improvement Area shall be identified in the unanimous approval of the property owners of the property to be annexed at the time of the annexation, as set forth in the Resolution of Formation, and the amount of the maximum bonded indebtedness for the Future Improvement Area shall be subtracted from the Non-Improvement Area No. 1 Bonded Indebtedness Limit; and

WHEREAS, pursuant to the Resolution of Consideration, the City Council set a public hearing for October 15, 2024; and

WHEREAS, the City Clerk caused to be published in a newspaper of general circulation published in the area of the CFD a notice of the pu blic hearing, stating that the Council will hold a public hearing on the proposed amendment and restatement of the Improvement Area No.1 Rate and Method, the proposed increase of the Improvement Area No. 1 Bonded Indebtedness Limit from $90,000,000 to $100,000,000, and the proposed increase of the Non-Improvement Area No. 1 Bonded Indebtedness Limit from $15,000,000 to $20,000,000; and

WHEREAS, the public hearing was held on this date, and the proposed amendment and restatement of the Improvement Area No.1 Rate and Method and the proposed increase of the Improvement Area No. 1 Bonded Indebtedness Limit from $90,000,000 to $100,000,000 was not opposed by more than 50% of the owners of land not exempt from the special tax within Improvement Area No. 1; the County has confirmed that there are no registered voters in Improvement Area No. 1; and

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RES. NO. 2024-256

WHEREAS, Government Code Section 53338 authorizes the holding of a special election of the qualified electors in Improvement Area No. 1 on the issue of (i) approving th e Amended and Restated Improvement Area No. 1 Rate and Method and (ii) approving the Amended Improvement Area No. 1 Bonded Indebtedness Limit; and

WHEREAS, following the public hearing, the City Council adopted a resolution entitled "Resolution of the City Council of the City of Fairfield Calling a Special Election To Amend and Restate the Rate and Method of Apportionment of Special Tax for Improvement Area No. 1 and Increase the Authorized Principal Amount of Bonded Indebtedness for Improvement Area No. 1 ," calling for a special landowner election of the qualified electors within Improvement Area No. 1 to be held on October 15, 2024; and

WHEREAS, the special election was held on October 15, 2024, and the ballots were submitted to the City Clerk as the official conducting the election; and

WHEREAS, the City Council subsequently adopted a resolution entitled “Resolution of the City Council of the City of Fairfield Declaring Results of Special Election to Amend and Restate the Rate and Method of Apportionment of Special Tax for Improvement Area No. 1 and Increase the Authorized Principal Amount of Bonded Indebtedness for Improvement Area No. 1” on October 15, 2024, in which it found that two-thirds of the votes cast at the election were in favor of the ballot measure.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The City Council hereby determines that the Amended and Restated Improvement Area No. 1 Rate and Method, attached hereto as Exhibit “A” and the Amended Improvement Area No. 1 Indebtedness Limit are lawfully authorized.

Section 2. The City Council also hereby approves the proposed increase in the Non - Improvement Area No. 1 Bonded Indebtedness Limit to $20,000,000. As provided by the Cit y Council in the Resolution Determining Necessity, (i) the designation as an improvement area of any territory annexing to the CFD, the maximum amount of bonded indebtedness for such improvement area, the rate and method of apportionment of special tax for such improvement area and the appropriations limit for the CFD shall be specified and approved in the unanimous approval executed by property owners in connection with their annexation to the CFD, subject to the conditions set forth in the Resolution of Formation and (ii) in the event all or a portion of the Future Annexation Area is annexed as one or more Future Improvement Areas (as defined in the Resolution Determining Necessity), the maximum bonded indebtedness of each such Future Improvement Area shall be identified in the unanimous approval of the property owners of the property to be annexed at the time of the annexation, as set forth in the Resolution of Formation, Packet Page 485 of 530Attachment 5 Page 4 of 6

RES. NO. 2024-256

and the amount of the maximum bonded indebtedness for the Future Improvement Area sha ll be subtracted from the Non-Improvement Area No. 1 Bonded Indebtedness Limit.

Section 3. Beginning in fiscal year 2025-2026, the special taxes levied in Improvement Area No. 1 shall be levied in accordance with the Amended and Restated Improvement Area No. 1 Rate and Method.

Section 4. The City Clerk is hereby directed to complete, execute and cause to be recorded in the office of the County Recorder of the County an Amended and Restated Notice of Special Tax Lien in the form required by the Act, such recording to occur no later than 15 days following adoption of this resolution.

Section 5. On October 18, 2016, by Resolution No. 2016-237, the City Council adopted local goals and policies for community facilities districts (the “Goals and Policies”). Section III requires all community facilities district bond issues to have at least a four to one property value to public lien ratio after calculating the value of the financed improvements to be installed.

On September 3, 2024, the City Council adopted Ordinance 2024-006, pursuant to which it approved a Fifth Amendment to Development Agreement, by and between the City and One Lake Holding LLC (“Fifth Amendment”), which amended that certain Amended and Restated Development Agreement, dated May 8, 2015, as subsequently amended (as amended, the “Development Agreement”). Among other things, the City agreed in the Fifth Amendment that the special tax rates in the CFD may reflect an Overall Tax Rate (as defined in the Development Agreement) of 1.75% of the estimated sales prices of each residential unit constructed or to be constructed within the CFD. The CFD change provisions culminating in this Resolution are intended to implement this provision in the Fifth Amendment.

As a result of the Fifth Amendment and these CFD change proceedings, the City Council hereby waives the provision in the Goals and Policies requiring at least a four to one value to lien ratio for bonds issued by the City for the CFD, and the City Council hereby determines that such value to lien ratio for bonds issued by the City for the CFD shall be at least three to one, unless the City and the Developer (as defined in the Development Agreement) otherwise agree on a higher value to lien ratio for a series of bonds.

Section 6. This resolution is effective upon its adoption.

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RES. NO. 2024-256

PASSED AND ADOPTED this 15th day of October 2024, by the following vote:

AYES: MEMBERS: MOY/BERTANI/CARR/PANDURO/TONNESEN/VACCARO/WILLIAMS NOES: MEMBERS: _________________________________________________ ABSENT: MEMBERS: _________________________________________________ ABSTAIN: MEMBERS: _________________________________________________

_________________________________________________
MAYOR
ATTEST:
___________________________

CITY CLERK

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One Lake CFD No. 2023-1, IA No. 1 1 May 3, 2024
IMPROVEMENT AREA NO. 1 OF THE

CITY OF FAIRFIELD
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(ONE LAKE PLANNING AREA 5)

AMENDED AND RESTATED

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
A Special Tax applicable to each Assessor’s Parcel in Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) shall be levied and collected according to the tax liability determined by the City or its designee, through the application of the appropriate amount or rate for Taxable Property, as described below. All of the property in Improvement Area No. 1, unless exempted by law or by the provisions of Section G below, shall be taxed for the purposes, to the extent, and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Accessory Unit” means a second residential unit of limited size (e.g., granny cottage, second unit) that shares a Parcel with a single-family detached unit. “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Map or other parcel map recorded at the County Recorder’s Office. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, (commencing with Section 53311), Part 1, Division 2 of Title 5 of the Government Code of the State of California.
“Administrative Expenses” means any or all of the following: the fees and expenses of any fiscal agent or trustee (including any fees or expenses of its counsel) employed in connection with any Bonds, and the expenses of the City in carrying out its duties with respect to the CFD and the Bonds, including, but not limited to, the levy and collection of the Special Tax, the fees and expenses of its legal counsel, charges levied by the County in connection with the levy and collection of Special Taxes, costs related to property owner inquiries regarding the Special Tax, costs associated with appeals or requests for interpretation associated with the Special Tax and this RMA, costs of the dissemination agent for the City and any party that has undertaken to provide continuing disclosure, amounts needed to pay rebate to the federal government with respect to the Bonds, costs associated with complying with any continuing disclosure requirements with respect to the Bonds and the Special Tax, costs associated with foreclosure and collection of delinquent Special Taxes and all other costs and expenses of the City and County in any way related to the establishment or administration of the CFD.
“Administrator” means the person or firm designated by the City to administer the Special Tax according to this RMA.

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One Lake CFD No. 2023-1, IA No. 1 2 May 3, 2024
“Affordable Housing Unit” means any Residential Unit for which a deed restriction has been recorded on title of the property that ensures that the Residential Unit will be available at an affordable housing cost due to a regulatory agreement of no less than 15 years, restricting 100% of the Residential Unit(s) on the Parcel to be affordable to households that are extremely low to low income, as defined in Health and Safety Code Section 50079.5. “Airspace Parcel” means a parcel with an assigned Assessor’s Parcel number that constitutes vertical space of an underlying land Parcel.
“Assessor’s Parcel” or “Parcel” means a lot or parcel, including an Airspace Parcel, shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel number. “Assessor’s Parcel Map” means an official map of the County Assessor designating Parcels by Assessor’s Parcel number.
“Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by the CFD, as identified in the list of authorized facilities and services included as Exhibit A to the Resolution of Formation adopted by the City Council when the CFD was formed. “Authorized Services” means the public services authorized to be funded, in whole or in part, by the CFD, as identified in the list of authorized facilities and services included as Exhibit A to the Resolution of Formation adopted by the City Council when the CFD was formed. “Bonds” means bonds or other debt (as defined in the Act), whether in one or more series, that are issued or assumed by or for Improvement Area No. 1 to finance Authorized Facilities. “Building Permit” means a single permit or set of permits required to construct a residential or mixed-use structure. If a permit is issued for a foundation, parking, landscaping or other related facility or amenity, but a building permit has not yet been issued for the structure served by these facilities or amenities, such permit shall not be considered a “Building Permit” for purposes of application of the Special Tax herein.
“Capitalized Interest” means funds in any capitalized interest account available to pay interest on Bonds.
“CFD” means the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5).
“CFD Update” means the date on which the Resolution of Change was adopted by the City Council.
“City” means the City of Fairfield.
“City Council” means the City Council of the City of Fairfield. “County” means the County of Solano.

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One Lake CFD No. 2023-1, IA No. 1 3 May 3, 2024
“Developed Property” means, in any Fiscal Year, all Parcels of Taxable Property that are not Taxable Owners Association Property, Taxable Public Property, or Taxable Welfare Exemption Property for which a Building Permit for new construction was issued prior to June 30 of the preceding Fiscal Year. Taxable Affordable Housing Units on Parcels of Developed Property shall be taxed, if required, pursuant to Step 6, not Step 1, in Section E below. “Development Class” means, individually, Developed Property, Final Map Property, Undeveloped Property, Taxable Owners Association Property, Taxable Welfare Exemption Property, Taxable Affordable Housing Unit, and Taxable Public Property. “Expected Land Uses” means the number of Residential Units within each Special Tax Category and Acreage of Non-Residential Property expected within Improvement Area No. 1 at the time of the CFD Update, as identified in Attachment 2 of this RMA. Pursuant to Section D below, the Administrator shall update Attachment 2 each time there is a Land Use Change. Such update shall be maintained internally by the Administrator and shall not require recordation of an amended RMA.
“Expected Maximum Facilities Special Tax Revenues” means the amount of annual revenue for the entirety of Improvement Area No. 1 that would be available if the Maximum Facilities Special Tax was levied on the Expected Land Uses. The Expected Maximum Facilities Special Tax Revenues as of the CFD Update are shown in Attachment 2 of this RMA, and such amount may be adjusted pursuant to Section D of this RMA or if Parcels within Improvement Area No. 1 prepay all or a portion of the Special Tax obligation.
“Facilities Special Tax” means a special tax levied in any Fiscal Year to pay the Facilities Special Tax Requirement.
“Facilities Special Tax Requirement” means the amount necessary in any Fiscal Year (i) to pay principal and interest on Bonds which are due in the calendar year which begins in such Fiscal Year, (ii) to replenish reserve funds to the extent such replenishment has not been included in a computation of the Facilities Special Tax Requirement in a previous Fiscal Year, (iii) to cure any delinquencies in the payment of principal or interest on Bonds which have occurred in the prior Fiscal Year, (iv) to pay Administrative Expenses, and (v) to pay the costs of Authorized Facilities and Authorized Services to be funded directly from Facilities Special Tax proceeds to the extent that paying directly for such costs does not increase the Facilities Special Taxes levied on Final Map Property or Undeveloped Property. The amounts referred to in clauses (i) and (ii) of the preceding sentence may be reduced in any Fiscal Year by (i) interest earnings on or surplus balances in funds and accounts for Bonds to the extent that such earnings or balances are available to apply against debt service pursuant to the Indenture, (ii) proceeds from the collection of penalties associated with delinquent Facilities Special Taxes, and (iii) any other revenues available to pay debt service on the Bonds as determined by the Administrator. “Final Map” means a final map, or portion thereof, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq) that creates Single Family Lots. The term “Final Map” shall not include any large lot subdivision map, Assessor’s Parcel Map, or subdivision map or portion thereof that does not create Single Family Lots, including Assessor’s Parcels that are designated as remainder parcels.

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One Lake CFD No. 2023-1, IA No. 1 4 May 3, 2024
“Final Map Property” means, in any Fiscal Year, all property for which a Final Map had recorded prior to June 30 of the preceding Fiscal Year and which has not yet become Developed Property, not including Taxable Owners Association Property, Taxable Welfare Exemption Property, or Taxable Public Property.
“First Bond Sale” means issuance of the first series of Bonds secured, in whole or in part, by Facilities Special Taxes levied and collected from Parcels in Improvement Area No. 1. “Fiscal Year” means the period starting July 1 and ending on the following June 30. “Improvement Area No. 1” means Improvement Area No. 1 of the CFD. “Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended, and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Change” means a proposed or approved change to the Expected Land Uses after the CFD Update.
“Maximum Facilities Special Tax” means the greatest amount of Facilities Special Tax that can be levied on a Parcel in any Fiscal Year as determined in accordance with Sections C and D below. “Maximum Services Special Tax” means the greatest amount of Services Special Tax that can be levied on an Assessor’s Parcel in any Fiscal Year after the Transition Event, as determined in accordance with Sections C and D below.
“Maximum Special Tax” means, prior to the Transition Event, the Maximum Facilities Special Tax and, after the Transition Event, the Maximum Services Special Tax. “Multi-Family Property” means, in any Fiscal Year, all Parcels of Developed Property for which Building Permits were issued for construction of a residential structure with five or more Residential Units that are offered for rent to the general public and cannot be purchased by individual homebuyers.
“Non-Residential Property” means, in any Fiscal Year, all Parcels of Developed Property that are not Single Family Attached Property, Single Family Detached Property, Multi-Family Property, Taxable Owners Association Property, Taxable Public Property, or Taxable Welfare Exemption Property.
“Owners Association” means a homeowners association or property owners association that provides services to, and collects assessments, fees, dues, or charges from, property within Improvement Area No. 1.
“Owners Association Property” means any property within Improvement Area No. 1 that is owned in fee or by easement by the Owners Association, not including any such property that is located directly under a residential structure.

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One Lake CFD No. 2023-1, IA No. 1 5 May 3, 2024
“Proportionately” means, for each Development Class, that the ratio of the actual Special Tax levied in any Fiscal Year to the Maximum Special Tax authorized to be levied in that Fiscal Year is equal for all Parcels assigned to the Development Class. “Public Property” means any property within Improvement Area No. 1 that is owned by the federal government, State of California, City, County, or other local governments or public agencies.
“Required Coverage” means the amount by which the Expected Maximum Facilities Special Tax Revenues must exceed the Bond debt service and required Administrative Expenses, as set forth in the Indenture, Certificate of Special Tax Consultant, or other formation or bond document that sets forth the minimum required debt service coverage. “Residential Unit” means an individual single-family detached unit, or an individual residential unit within a duplex, triplex, fourplex, townhome, or condominium structure. An Accessory Unit that shares a Parcel with a single-family detached unit shall not be considered a separate Residential Unit for purposes of this RMA.
“RMA” means this Rate and Method of Apportionment of Special Tax. “Services Special Tax” means a special tax levied in any Fiscal Year after the Transition Event to pay the Services Special Tax Requirement.
“Services Special Tax Requirement” means the amount of revenue needed in any Fiscal Year after the Transition Event to pay for: (i) Authorized Services, (ii) Administrative Expenses, and (iii) amounts needed to cure delinquencies in the payment of Services Special Taxes which have occurred in the prior Fiscal Year. In any Fiscal Year, the Services Special Tax Requirement shall be reduced by surplus amounts available (as determined by the City) from the levy of the Services Special Tax in prior Fiscal Years, including revenues from collection of delinquent Services Special Taxes and associated penalties and interest.
“Single Family Attached Property” means, in any Fiscal Year, all Parcels of Developed Property for which a Building Permit was issued for construction of a residential structure consisting of two or more Residential Units that share common walls, have separate Assessor’s Parcel numbers assigned to them (except for a duplex unit, which may share a Parcel with another duplex unit), and may be purchased by individual homebuyers (which shall still be the case even if the Residential Units are purchased and subsequently offered for rent by the owner), including such residential structures that meet the statutory definition of a condominium contained in Civil Code Section 1351.
“Single Family Detached Property” means, in any Fiscal Year, all Parcels of Developed Property for which Building Permits were issued for construction of a Residential Unit that does not share a common wall with another Residential Unit.
“Single Family Lot” means an individual residential lot, identified and numbered on a recorded Final Map, on which a Building Permit has been or is permitted to be issued for construction of a single family detached unit or a structure with single family attached units without further Packet Page 492 of 530Attachment 6 Page 5 of 20

One Lake CFD No. 2023-1, IA No. 1 6 May 3, 2024
subdivision of the lot and for which no further subdivision of the lot is anticipated pursuant to an approved tentative map.
“Special Tax” means, prior to the Transition Event, the Facilities Special Tax and, after the Transition Event, the Services Special Tax.
“Special Tax Category” means one of the ten categories of Single Family Attached Property, Single Family Detached Property, Multi-Family Property, and Non-Residential Property set forth in Table 1 in Section C below.
“Square Footage” means the square footage of living area of a Residential Unit as reflected on a Building Permit, condominium plan, certificate of occupancy, or other source available to the Administrator.
“Target Facilities Special Tax” means the Facilities Special Tax per Residential Unit or per Acre for Non-Residential Property for each Special Tax Category, as set forth in Table 1 below, that is used to determine the Expected Maximum Facilities Special Tax Revenues. “Taxable Owners Association Property” means, in any Fiscal Year after the First Bond Sale, any Parcel of Owners Association Property that satisfies all three of the following conditions: (i) the Parcel had not been Owners Association Property on the date of the First Bond Sale; (ii) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D below), the Parcel was not anticipated to be Owners Association Property based on the Expected Land Uses, as determined by the Administrator; and (iii) if the Parcel were to be exempt from the Facilities Special Tax because it has become Owners Association Property, the Expected Maximum Facilities Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained.
“Taxable Property” means all Parcels within Improvement Area No. 1 that are not exempt from the Special Tax pursuant to law or Section G below.
“Taxable Affordable Housing Unit” means in any Fiscal Year after the First Bond Sale, any Residential Unit that satisfies both of the following conditions: (i) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D herein), the Residential Unit was not anticipated to be an Affordable Housing Unit based on the Expected Land Uses, as determined by the Administrator; and (ii) if the Parcel were to be exempt from the Facilities Special Tax because it has become an Affordable Housing Unit, the Expected Maximum Facilities Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained. “Taxable Public Property” means in any Fiscal Year after the First Bond Sale, any Parcel of Public Property that satisfies all three of the following conditions: (i) the Parcel had not been Public Property on the date of issuance of the First Bond Sale; (ii) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D below), the Parcel was not anticipated to be Public Property based on the Expected Land Uses, as determined by the Administrator; and (iii) if the Parcel were to be exempt from the Facilities Special Tax because it has become Public Property, the Expected Maximum Facilities Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained.

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One Lake CFD No. 2023-1, IA No. 1 7 May 3, 2024
“Taxable Welfare Exemption Property” means in any Fiscal Year after the First Bond Sale, any Parcel of Welfare Exemption Property that satisfies all three of the following conditions: (i) the Parcel had not been Welfare Exemption Property on the date of issuance of the First Bond Sale; (ii) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D herein), the Parcel was not anticipated to be Welfare Exemption Property based on the Expected Land Uses, as determined by the Administrator; and (iii) if the Parcel were to be exempt from the Special Tax because it has become Welfare Exemption Property, the Expected Maximum Facilities Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained. “Tentative Map” means the Canon Station tentative map approved by the City Council in October 2016, as amended in August 2018, and as may be further amended from time to time. “Transition Event” shall be deemed to have occurred when the Administrator determines that the following events have occurred: (i) all Bonds secured by the levy and collection of Facilities Special Taxes in the CFD have been fully repaid, or there are sufficient revenues available to fully repay the Bonds in funds and accounts that, pursuant to the Indenture, will require such revenues to be applied to repay the Bonds; (ii) all Administrative Expenses from prior Fiscal Years have been paid or reimbursed to the City; and (iii) there are no other Authorized Facilities that the City intends to fund with Bonds and Facilities Special Taxes. “Transition Year” means the first Fiscal Year in which the Administrator determines that the Transition Event occurred in the prior Fiscal Year.
“Undeveloped Property” means, in any Fiscal Year, all Parcels of Taxable Property that are not Final Map Property, Developed Property, Taxable Owners Association Property, Taxable Public Property, or Taxable Welfare Exemption Property, as defined herein. “Welfare Exemption Property” means, in any Fiscal Year, any Parcels in Improvement Area No. 1 that have received a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code and for which such welfare exemption is still in place.

B. DATA FOR ADMINISTRATION OF SPECIAL TAX
Each Fiscal Year, the Administrator shall: (i) categorize each Parcel of Taxable Property as Developed Property, Final Map Property, Undeveloped Property, Taxable Owners Association Property, Taxable Public Property, Taxable Affordable Housing Unit, or Taxable Welfare Exemption Property; (ii) for Developed Property, categorize each Parcel as Single Family Attached Property, Single Family Detached Property, Multi-Family Property, or Non-Residential Property; (iii) assign each Residential Unit to the appropriate Special Tax Category; (iv) determine if any of the Residential Units are Affordable Housing Units; (v) determine if the Transition Event occurred in the prior Fiscal Year; and (vi) determine the Facilities Special Tax Requirement or Services Special Tax Requirement for the Fiscal Year, as applicable. In addition, the Administrator shall, on an ongoing basis, monitor changes to the Tentative Map, track all Building Permits that have been issued, and review all condominium plans that have been recorded to determine if there are any proposed Land Use Changes that would affect the Expected Maximum Facilities Special Tax Revenues. If the Expected Maximum Facilities Special Tax Revenues will be revised pursuant to a proposed Land Use Change, the Administrator shall apply the steps set forth in Section D below.

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One Lake CFD No. 2023-1, IA No. 1 8 May 3, 2024

In any Fiscal Year, if it is determined that: (i) a parcel map for property in Improvement Area No. 1 was recorded after January 1 of the prior Fiscal Year (or any other date after which the Assessor will not incorporate the newly-created Parcels into the then current tax roll), (ii) because of the date the parcel map was recorded, the Assessor does not yet recognize the new Parcels created by the parcel map, and (iii) one or more of the newly-created Parcels is in a different Development Class than other Parcels created by the subdivision, the Administrator shall calculate the Special Tax for the property affected by recordation of the parcel map by determining the Special Taxes that apply separately to the property within each Development Class, then applying the sum of the individual Special Taxes to the Parcel that was subdivided by recordation of the parcel map.

C. MAXIMUM SPECIAL TAX

1. Facilities Special Tax: Developed Property

The Maximum Facilities Special Tax for Parcels of Single Family Attached Property, Single Family Detached Property, Multi-Family Property, and Non-Residential Property shall be the greater of (i) the Target Facilities Special Tax set forth in Table 1 below, or (ii) the Maximum Facilities Special Tax determined pursuant to Section D.

TABLE 1
Target Facilities Special Tax
Developed Property

Special Tax Category

Target Facilities
Special Tax
Before Transition Year
(Fiscal Year 2023-24)*

Target Facilities
Special Tax In and
After Transition Year
(Fiscal Year 2023-24)*

Single Family Detached Property
Greater than or equal to 3,000 Square Feet
2,800 – 2,999 Square Feet
2,600 – 2,799 Square Feet
2,400 – 2,599 Square Feet
2,200 – 2,399 Square Feet
Less than 2,200 Square Feet

$5,623 per Residential Unit
$5,136 per Residential Unit
$4,718 per Residential Unit
$4,475 per Residential Unit
$4,301 per Residential Unit
$3,988 per Residential Unit

$0 per Residential Unit
$0 per Residential Unit
$0 per Residential Unit
$0 per Residential Unit
$0 per Residential Unit
$0 per Residential Unit

Single Family Attached Property
Greater than or Equal to 1,800 Square Feet
Less than 1,800 Square Feet

$3,936 per Residential Unit
$3,762 per Residential Unit

$0 per Residential Unit
$0 per Residential Unit
Multi-Family Property $62,681 per Acre $0 per Acre
Non-Residential Property $62,681 per Acre $0 per Acre

* On July 1, 2024 and on each July 1 thereafter, each Target Facilities Special Tax shown in Table 1 shall be increased by an amount equal to 2.0% of the amount in effect for the prior Fiscal Year.

Once a Facilities Special Tax has been levied on a Parcel of Developed Property, the Maximum Facilities Special Tax applicable to that Parcel shall not be reduced in future Fiscal Years regardless of changes in land use on the Parcel, except (i) in the event of a partial prepayment pursuant to Section H, and (ii) pursuant to Section D below. Notwithstanding the foregoing, (i) if Bonds have yet to be issued, the Parcels can be assigned to the appropriate Special Tax Category, Packet Page 495 of 530Attachment 6 Page 8 of 20

One Lake CFD No. 2023-1, IA No. 1 9 May 3, 2024
and the Administrator shall recalculate the Expected Maximum Facilities Special Tax Revenues based on the corresponding changes in revenues, and (ii) the actual Facilities Special Tax levied on the Parcel in any Fiscal Year may be less than the Maximum Facilities Special Tax if a lower Facilities Special Tax is calculated pursuant to Step 1 in Section E below.

2. Facilities Special Tax: Final Map Property, Undeveloped Property, Taxable Owners Association Property, Taxable Public Property, and Taxable Welfare Exemption Property Prior to the Transition Year, the Maximum Facilities Special Tax for Final Map Property, Undeveloped Property, Taxable Owners Association Property, Taxable Public Property, and Taxable Welfare Exemption Property is $62,681 per Acre for Fiscal Year 2023-24. On July 1, 2024 and on each July 1 thereafter, the Maximum Facilities Special Tax for Final Map Property, Undeveloped Property, Taxable Owners Association Property, Taxable Public Property, and Taxable Welfare Exemption Property shall be increased by an amount equal to 2.0% of the amount in effect for the prior Fiscal Year. In the Transition Year and each Fiscal Year thereafter, no Facilities Special Tax shall be levied on Final Map Property, Undeveloped Property, Taxable Owners Association Property, Taxable Public Property, or Taxable Welfare Exemption Property unless there are delinquent Facilities Special Taxes on a Parcel, in which case such delinquent Facilities Special Taxes can continue to be levied against the Parcel until they are collected.

3. Services Special Tax: Developed Property
Table 2 below identifies the Maximum Services Special Tax for Single Family Attached Property, Single Family Detached Property, Multi-Family Property, and Non-Residential Property.

TABLE 2
Maximum Services Special Tax
Developed Property
Special Tax Category
Maximum Services
Special Tax
Before Transition Year
(Fiscal Year 2023-24)*
Maximum Services
Special Tax In and
After Transition Year
(Fiscal Year 2023-24)*
Single Family Detached Property
Greater than or Equal to 3,000 Square Feet
2,800 – 2,999 Square Feet
2,600 – 2,799 Square Feet
2,400 – 2,599 Square Feet
2,200 – 2,399 Square Feet
Less than 2,200 Square Feet
$0 per Residential Unit
$0 per Residential Unit
$0 per Residential Unit
$0 per Residential Unit
$0 per Residential Unit
$0 per Residential Unit
$1,406 per Residential Unit
$1,284 per Residential Unit
$1,180 per Residential Unit
$1,119 per Residential Unit
$1,075 per Residential Unit
$997 per Residential Unit
Single Family Attached Property
Greater than or Equal to 1,800 Square Feet
Less than 1,800 Square Feet
$0 per Residential Unit
$0 per Residential Unit
$984 per Residential Unit
$940 per Residential Unit
Multi-Family Property $0 per Acre $15,670 per Acre
Non-Residential Property $0 per Acre $15,670 per Acre
* Beginning July 1, 2024 and each July 1 thereafter until the Transition Year, the Services Special Taxes in Table 2 shall be increased by 2.0% of the amount in effect in the prior Fiscal Year. On July 1 of the Transition Year and each July 1 thereafter, the Services Special Taxes and the Maximum Services Special Tax assigned to each Parcel shall be escalated by 4.0% of the amount in effect in the prior Fiscal Year.

Packet Page 496 of 530Attachment 6 Page 9 of 20

One Lake CFD No. 2023-1, IA No. 1 10 May 3, 2024

4. Services Special Tax: Final Map Property, Undeveloped Property, Taxable Owners Association Property, Taxable Public Property, Taxable Welfare Exemption Property, and Taxable Affordable Housing Units
No Services Special Tax shall be levied on Final Map Property, Undeveloped Property, Taxable Owners Association Property, Taxable Public Property, Taxable Welfare Exemption Property, or Taxable Affordable Housing Units.

D. CHANGES TO MAXIMUM FACILITIES SPECIAL TAX

1. Land Use Changes
The Expected Maximum Facilities Special Tax Revenues shown in Attachment 2 were originally calculated based on the Expected Land Uses at the CFD Update. Attachment 2 is subject to modification upon the occurrence of Land Use Changes, as described below. The Administrator shall review all Land Use Changes and compare the revised land uses to the Expected Land Uses to evaluate the impact on the Expected Maximum Facilities Special Tax Revenues.

Prior to the First Bond Sale, if a Land Use Change is proposed or identified that will result in a change in the Expected Maximum Facilities Special Tax Revenues, no action will be needed pursuant to this Section D. Upon approval of the Land Use Change, the Administrator shall update Attachment 2 to show the revised Expected Maximum Facilities Special Tax Revenues.

After the First Bond Sale, if a Land Use Change is proposed or identified, Steps 1 through 3 must be applied:

Step 1: By reference to Attachment 2 (which shall be updated by the Administrator each time a Land Use Change has been processed according to this Section D), the Administrator shall identify the Expected Maximum Facilities Special Tax Revenues prior to the Land Use Change.

Step 2: The Administrator shall calculate the Expected Maximum Facilities Special Tax Revenues that could be collected from Taxable Property in Improvement Area No. 1 if the Land Use Change occurs.

Step 3: If the revenues calculated in Step 2 are (i) higher than that determined in Step 1 or (ii) less than those calculated in Step 1, but the reduction in Expected Maximum Facilities Special Tax Revenues does not reduce debt service coverage on outstanding Bonds below Required Coverage, no further action is needed, and the Administrator shall update Attachment 2 to show the revised Expected Maximum Facilities Special Tax Revenues as calculated in Step 2.

If the revenues calculated in Step 2 are less than those calculated in Step 1, and the Administrator determines that the reduction in Expected Maximum Facilities Special Tax Revenues would reduce debt service coverage on outstanding Bonds below the Required Coverage, one of the following shall occur:

Packet Page 497 of 530Attachment 6 Page 10 of 20

One Lake CFD No. 2023-1, IA No. 1 11 May 3, 2024

3.a. The landowner requesting the Land Use Change (the “Requesting Landowner”) may make a prepayment in an amount that will ensure that the reduced Expected Maximum Facilities Special Tax Revenues are sufficient to provide Required Coverage, as determined pursuant to, and as otherwise limited by, Section H below. If the Requesting Landowner notifies the Administrator that he/she would like to remedy the reduction by making a prepayment, such prepayment must be made by the earlier of (i) 30 days from the date of delivery of the prepayment estimate or (ii) the date of issuance of any Building Permits for any Parcel owned by the Requesting Landowner that was Final Map Property or Undeveloped Property at the time the Administrator prepared the prepayment estimate, or

3.b. If a prepayment is not requested or received, the Administrator shall:
i.Identify all remaining Parcels of Final Map Property and Undeveloped Property in Improvement Area No. 1 that are owned by the Requesting Landowner for which Building Permits have not yet been issued (collectively, the “Adjustment Property”) as determined by the Administrator;
ii.Determine the number of Residential Units within each Special Tax Category that are expected on the Adjustment Property after the Land Use Change as determined by the Administrator;
iii.Increase the Target Facilities Special Tax proportionately for each Special Tax Category applicable to property owned by the Requesting Landowner (as determined by the Administrator) until, when applied to the Expected Land Uses on the Adjustment Property, the Maximum Facilities Special Tax revenues that can be collected within Improvement Area No. 1 are sufficient to maintain Required Coverage. The amount calculated shall thereafter be the Maximum Facilities Special Tax for each Residential Unit when the Adjustment Property becomes Developed Property, which amount shall increase by 2.0% beginning the following July 1 and each July 1 thereafter. The Administrator shall update Attachment 2 to reflect the Expected Land Uses, Maximum Facilities Special Taxes, and Expected Maximum Facilities Special Tax Revenues for the Adjustment Property.

Pursuant to this Section D, the Administrator may from time to time update Attachment 2 to reflect revised Expected Maximum Facilities Special Tax Revenues. Such update shall be maintained internally by the Administrator and shall not require recordation of an amended RMA.

The duties imposed on the Administrator to review Land Use Changes and to make the calculations set forth above, are intended only to facilitate administration of the Facilities Special Tax and to better assure the sufficiency of tax capacity to pay debt service on Bonds. Such duties are not intended to give any developer, subdivider, or owner of property any right to receive notice of the potential impact of Land Use Changes on the Facilities Special Tax applicable to a Packet Page 498 of 530Attachment 6 Page 11 of 20

One Lake CFD No. 2023-1, IA No. 1 12 May 3, 2024
Parcel; and each developer, subdivider, or owner of property in Improvement Area No. 1 shall be responsible for understanding the impact thereof on the Facilities Special Tax applicable to such property.

2. Increase in the Number of Affordable Housing Units

If, prior to the First Bond Sale, the Administrator determines that there is an increase in the number of Affordable Housing Units expected within Improvement Area No. 1, the Administrator shall update the Expected Land Uses and Expected Maximum Facilities Special Tax Revenues in Attachment 2, and the additional Affordable Housing Units will be exempt from the levy of Special Taxes.

If, at any time after the First Bond Sale, additional Affordable Housing Units are proposed and, if exemption of the new Affordable Housing Units would decrease the Expected Maximum Facilities Special Tax Revenues to a point at which Required Coverage cannot be maintained, such Affordable Housing Units shall be categorized as Taxable Affordable Housing Units and taxed pursuant to Section E below. In any Fiscal Year, the Maximum Facilities Special Tax assigned to a Taxable Affordable Housing Unit will be equal to the Maximum Facilities Special Tax that applies in that Fiscal Year to a market-rate Residential Unit of the same square footage on Single Family Detached Property or Single Family Attached Property, as applicable. Such Maximum Facilities Special Tax will escalate each Fiscal Year by an amount equal to 2.0% of the amount in effect for the prior Fiscal Year.

E. METHOD OF LEVY OF THE SPECIAL TAX

1. Facilities Special Tax

Each Fiscal Year, the Administrator shall determine the Facilities Special Tax Requirement and levy the Facilities Special Tax on all Parcels of Taxable Property as follows:

Step 1: The Facilities Special Tax shall be levied Proportionately on each Parcel of Developed Property up to 100% of the Maximum Facilities Special Tax for each Parcel of Developed Property for such Fiscal Year until the amount levied is equal to the Facilities Special Tax Requirement prior to applying any available Capitalized Interest.

Step 2: If additional revenue is needed after Step 1 and after applying Capitalized Interest to the Facilities Special Tax Requirement, the Facilities Special Tax shall be levied Proportionately on each Parcel of Final Map Property up to 100% of the Maximum Facilities Special Tax for each Parcel of Final Map Property for such Fiscal Year until the amount levied is equal to the Facilities Special Tax Requirement.

Step 3: If additional revenue is needed after Step 2, the Facilities Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property up to 100% of the Maximum Facilities Special Tax for Undeveloped Property for such Fiscal Year until the amount levied is equal to the Facilities Special Tax Requirement.

Packet Page 499 of 530Attachment 6 Page 12 of 20

One Lake CFD No. 2023-1, IA No. 1 13 May 3, 2024
Step 4: If additional revenue is needed after Step 3, the Special Tax shall be levied Proportionately on each Parcel of Taxable Welfare Exemption Property, up to 100% of the Maximum Facilities Special Tax for each Parcel of Taxable Welfare Exemption Property for such Fiscal Year until the amount levied is equal to the Facilities Special Tax Requirement.

Step 5: If additional revenue is needed after Step 4, the Facilities Special Tax shall be levied Proportionately on each Parcel of Taxable Owners Association Property, up to 100% of the Maximum Facilities Special Tax for each Parcel of Taxable Owners Association Property for such Fiscal Year until the amount levied is equal to the Facilities Special Tax Requirement.

Step 6: If additional revenue is needed after Step 5, the Facilities Special Tax shall be levied Proportionately on each Taxable Affordable Housing Unit, up to 100% of the Maximum Facilities Special Tax for each Taxable Affordable Housing Unit for such Fiscal Year until the amount levied is equal to the Facilities Special Tax Requirement.

Step 7: If additional revenue is needed after Step 6, the Facilities Special Tax shall be levied Proportionately on each Parcel of Taxable Public Property, up to 100% of the Maximum Facilities Special Tax for each Parcel of Taxable Public Property for such Fiscal Year until the amount levied is equal to the Facilities Special Tax Requirement.

2. Services Special Tax
Beginning in the Transition Year and each Fiscal Year thereafter, the Administrator shall determine the Services Special Tax Requirement and the Services Special Tax shall be levied Proportionately on each Parcel of Developed Property up to 100% of the Maximum Services Special Tax for each Parcel of Developed Property for such Fiscal Year until the amount levied is equal to the Services Special Tax Requirement.

F. MANNER OF COLLECTION OF SPECIAL TAX
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that partial prepayments of the Facilities Special Tax are permitted as set forth in Section H below and provided further that the City may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner, and may collect delinquent Special Taxes through foreclosure or other available methods.

The Facilities Special Tax shall be levied and collected through and including the earlier of (i) the Fiscal Year prior to the Transition Year or (ii) Fiscal Year 2073-74. Under no circumstances may the Facilities Special Tax on a Parcel in private residential use be increased in any Fiscal Year as a consequence of delinquency or default in payment of the Facilities Special Tax levied on another Parcel or Parcels by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults. The Services Special Tax may be levied and collected in perpetuity commencing in the Transition Year.

Packet Page 500 of 530Attachment 6 Page 13 of 20

One Lake CFD No. 2023-1, IA No. 1 14 May 3, 2024
G. EXEMPTIONS
Notwithstanding any other provision of this RMA, no Special Tax shall be levied on the following:
(i) Owners Association Property, Public Property, or Welfare Exemption Property except Taxable Owners Association Property, Taxable Public Property, and Taxable Welfare Exemption Property, as defined herein; (ii) Affordable Housing Units except Taxable Affordable Housing Units; and (iii) Parcels that are: (a) designated as permanent open space or common space on which no structure is permitted to be constructed, (b) owned by a public utility for an unmanned facility, or (c) subject to an easement that precludes any other use on the Parcels. Notwithstanding the foregoing, if a Maximum Facilities Special Tax was assigned to a Parcel, and the entire Parcel meets the criteria in (a), (b) or (c) above, the Parcel shall remain subject to the levy of the Facilities Special Tax, unless the First Bond Sale has not occurred, or the Administrator determines that, if such Parcel becomes exempt from the Facilities Special Tax, the corresponding reduction in the Expected Maximum Facilities Special Tax Revenues would not reduce debt service coverage on outstanding Bonds below the Required Coverage. In either case, such property shall be categorized as Public Property, and the Administrator shall recalculate the Expected Maximum Facilities Special Tax Revenues to reflect the corresponding loss in revenues.

H. PARTIAL PREPAYMENT OF FACILITIES SPECIAL TAX
The following definitions apply to this Section H:
“Improvement Fund” means the account (regardless of its name) identified in the Indenture to hold funds which are available to acquire or construct Authorized Facilities. “Outstanding Bonds” means all Previously Issued Bonds which remain outstanding, with the following exception: if a Facilities Special Tax has been levied against, or already paid by, an Assessor’s Parcel making a prepayment, and a portion of the Facilities Special Tax will be used to pay a portion of the next principal payment on the Bonds that remain outstanding (as determined by the Administrator), that next principal payment shall be subtracted from the total Bond principal that remains outstanding, and the difference shall be used as the amount of Outstanding Bonds for purposes of this prepayment formula. “Previously Issued Bonds” means all Bonds that have been issued prior to the date of prepayment.
“Public Facilities Requirement” means $70 million or such other number as shall be determined by the City to be an appropriate estimate of the net construction proceeds that will be generated from all Bonds that have been or are expected to be issued on behalf of Improvement Area No. 1.
“Remaining Facilities Costs” means the Public Facilities Requirements, minus public facility costs funded by Previously Issued Bonds, Facilities Special Taxes, or prior prepayments.

Packet Page 501 of 530Attachment 6 Page 14 of 20

One Lake CFD No. 2023-1, IA No. 1 15 May 3, 2024
A property owner may prepay up to 75% of the Facilities Special Tax obligation applicable to a Parcel, provided that a prepayment may be made only if there are no delinquent Facilities Special Taxes with respect to such Parcel at the time of prepayment. An owner of a Parcel intending to prepay a portion of the Facilities Special Tax obligation shall provide the City with (i) written notice of intent to prepay, which shall identify the percentage of the Maximum Facilities Special Tax that is to be prepaid, (ii) payment of fees established by the City to process the prepayment request, and (iii) written evidence that there are no delinquent Special Taxes against the Parcel.

Within 30 days of receipt of such written notice, the City or its designee shall notify such owner of the prepayment amount for such Parcel. Prepayment must be made not less than 50 days prior to any redemption date for Bonds to be redeemed with the proceeds of such prepaid Facilities Special Taxes. Under no circumstance shall a prepayment be allowed that would reduce debt service coverage below the Required Coverage.

The Prepayment Amount shall be calculated as follows: (capitalized terms as defined below):

Bond Redemption Amount
Plus Remaining Facilities Amount
plus Redemption Premium
plus Defeasance Requirement
plus Administrative Fees and Expenses
less Reserve Fund Credit
equals Prepayment Amount

As of the proposed date of prepayment, the Prepayment Amount shall be determined by application of the following steps:

Step 1. Determine the Maximum Facilities Special Tax for the Parcel based on Expected Land Uses for the Parcel at the time the prepayment is calculated or, in the event of a prepayment pursuant to Step 3.a. in Section D, compute the amount by which the Expected Maximum Facilities Special Tax Revenues associated with a proposed Land Use Change would be reduced below the amount needed to maintain Required Coverage, and use this amount as the figure for purposes of this Step 1.

Step 2. Divide the Maximum Facilities Special Tax computed pursuant to Step 1 by the Expected Maximum Facilities Special Tax Revenues at the time of the prepayment calculation.

Step 3. Multiply the quotient computed in Step 2 by the percentage of the Maximum Facilities Special Tax that the property owner wants to prepay, which percentage shall not exceed 75%.

Step 4. Multiply the quotient computed pursuant to Step 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the “Bond Redemption Amount”).

Step 5. Compute the current Remaining Facilities Costs (if any).

Packet Page 502 of 530Attachment 6 Page 15 of 20

One Lake CFD No. 2023-1, IA No. 1 16 May 3, 2024
Step 6. Multiply the quotient computed pursuant to Step 3 by the amount determined pursuant to Step 5 to compute the amount of Remaining Facilities Costs to be prepaid (the “Remaining Facilities Amount”).

Step 7. Multiply the Bond Redemption Amount computed pursuant to Step 4 by the applicable redemption premium as shown in the Indenture, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

Step 8. Compute the amount needed to pay interest on the Bond Redemption Amount starting with the last Bond interest payment date on which interest has been or will be paid by Facilities Special Taxes already levied until the earliest redemption date for the Outstanding Bonds. If Bonds are callable at, or prior to, the last Bond interest payment date on which interest has been or will be paid by Facilities Special Taxes already levied, Steps 8, 9 and 10 of this prepayment formula will not apply.

Step 9. Compute the amount of interest the City reasonably expects to derive from reinvestment of the Bond Redemption Amount plus the Redemption Premium from the first Bond interest payment date after which the prepayment has been received until the redemption date for the Outstanding Bonds.

Step 10. Subtract the amount computed pursuant to Step 9 from the amount computed pursuant to Step 8 (the “Defeasance Requirement”).

Step 11. The administrative fees and expenses associated with the prepayment will be determined by the Administrator and include the costs of computing the prepayment, redeeming Bonds and recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).

Step 12. If, at the time the prepayment is calculated, the reserve fund is greater than or equal to the reserve requirement, and to the extent so provided in the Indenture, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”).

Step 13. The Facilities Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 4, 6, 7, 10, and 11, less the amount computed pursuant to Step 12 (the “Prepayment Amount”).

Step 14. From the Prepayment Amount, the amounts computed pursuant to Steps 4, 7, and 10 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds (including the payment of any accrued interest). The amount computed pursuant to Step 6 shall be deposited into the Improvement Fund. The amount computed pursuant to Step 11 shall be retained in the account or fund that is established to pay Administrative Expenses of the CFD.

Packet Page 503 of 530Attachment 6 Page 16 of 20

One Lake CFD No. 2023-1, IA No. 1 17 May 3, 2024
Once a partial prepayment has been received, an Amendment to Notice of Special Tax Lien shall be recorded against the Parcel to reflect the reduced Special Tax lien for the Parcel, which shall be equal to the portion of the Maximum Facilities Special Tax that was not prepaid, and the Administrator shall update Attachment 2 to show the revised Expected Maximum Facilities Special Tax Revenues. However, an Amendment to Notice of Special Tax Lien shall not be recorded until all Facilities Special Taxes levied on the Parcel in the current or prior Fiscal Years have been collected.

Notwithstanding the foregoing, if at any point in time the Administrator determines that the Maximum Facilities Special Tax revenue that could be collected from Taxable Property that remains subject to the Special Tax after the proposed prepayment would be less than the Required Coverage on Bonds that will remain outstanding after defeasance or redemption of Bonds from proceeds of the estimated prepayment, the amount of the prepayment shall be increased until the amount of Bonds defeased or redeemed is sufficient to reduce remaining annual debt service to a point at which Required Coverage is maintained.

I. APPEALS AND INTERPRETATIONS
For purposes of clarifying any vagueness or ambiguity in this RMA interpretations may be made by the City by ordinance or resolution without going through change proceedings and without voter approval.

Packet Page 504 of 530Attachment 6 Page 17 of 20

ATTACHMENT 1
Improvement Area No. 1
City of Fairfield
Community Facilities District No. 2023-1
(One Lake Planning Area 5)
Tentative Map
(Initial Approved and First Amendment)
Packet Page 505 of 530Attachment 6 Page 18 of 20

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OPARCEL P1G:\1668\1668-16\ACAD\TM\PA5\TM01.DWGTENTATIVE MAPONE LAKE - PLANNING AREA 5CITY OF FAIRFIELD SOLANO COUNTY CALIFORNIASCALE: 1" = DATE: MAY 21, 2021CIVIL ENGINEERSSURVEYORSPLANNERSSAN RAMONWWW.CBANDG.COMROSEVILLE(925) 866-0322(916) 788-4456OF 20 SHEETSSHEET NO.MANUEL CAMPOS PKWYPEABODY ROAD VAN
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E 80TRAVIS AIRFORCE BASEMERIDIAN ROAD McCRORY ROADLEWIS ROADHAY ROADMARKELEY LANEGATE ROADCEMENT HILL ROADPROJECT SITEVICINITY MAP200'COVER SHEET & GENERAL NOTES6004002000Sheet List TableSheet NumberSheet TitleLEGENDDESCRIPTIONPROPOSEDEXISTINGABBREVIATIONS36CONTACTS & GENERAL NOTES:PARCEL SUMMARYPARCEL / LOTLAND USEAREAOWNERUNIT SUMMARYDENSITY CALCULATIONPacket Page 506 of 530Attachment 6 Page 19 of 20

ATTACHMENT 2

Improvement Area No. 1
City of Fairfield
Community Facilities District No. 2023-1
(One Lake Planning Area 5)
Expected Land Uses and Expected Maximum Facilities Special Tax Revenues

Land Use Category Square Footage
Number of
Units or
Acreage
Target
Facilities
Special Tax
(FY 2023-24) *
Expected
Maximum
Facilities Special
Tax Revenues
(FY 2023-24) *
Single Family Detached
Property ≥ 3,000 square feet 170 units $5,623 per
Residential Unit $955,910
Single Family Detached
Property 2,800 to 2,999 square feet 226 units $5,136 per Residential Unit $1,160,736
Single Family Detached
Property 2,600 to 2,799 square feet 0 units $4,718 per
Residential Unit $0
Single Family Detached
Property 2,400 to 2,599 square feet 116 units $4,475 per Residential Unit $519,100
Single Family Detached
Property 2,200 to 2,399 square feet 286 units $4,301 per Residential Unit $1,230,086
Single Family Detached
Property < 2,200 square feet 134 units $3,988 per
Residential Unit $534,392
Single Family Attached
Property ≥ 1,800 square feet 0 units $3,936 per
Residential Unit $0
Single Family Attached
Property < 1,800 square feet 0 units $3,762 per
Residential Unit $0
Affordable Housing Units N/A 0 units $0 per
Residential Unit $0
Multi-Family Property N/A 0 acres $62,681 per Acre $0
Non-Residential Property N/A 0 acres $62,681 per Acre $0 Expected Maximum Facilities Special Tax Revenues (FY 2023-24) * $4,400,224

* On July 1, 2024 and on each July 1 thereafter, the Target Facilities Special Tax and Expected Maximum Facilities Special Tax Revenues shown above shall be increased by an amount equal to 2.0% of the amount in effect for the prior Fiscal Year.

Packet Page 507 of 530Attachment 6 Page 20 of 20

CITY OF FAIRFIELD

ORDINANCE NO. 2024-09

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD AMENDING AND RESTATING ORDINANCE NO. 2023-05 AND LEVYING SPECIAL TAXES WITHIN THE CITY OF FAIRFIELD COMMUNITY FACILITIES DISTRICT NO. 2023-1 (ONE LAKE PLANNING AREA 5)

The City Council of the City of Fairfield (the “City”) previously conducted proceedings under and pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5 (commencing with Section 53311) of the California Government Code (the “Act”), to form (i) “City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5)” (the “CFD”), (ii) “Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5)” (“Improvement Area No. 1”), and (iii) “City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) (Future Annexation Area)” (the “Future Annexation Area”); and

All of the territory in the CFD as of the date hereof is located in Improvement Area No. 1; and

In the City Council's Resolution No. 2023-31 adopted on February 21, 2023 (the “Resolution of Formation”), the City Council, among other things, approved the boundaries of the CFD, Improvement Area No. 1 and the Future Annexation Area, as set forth in the map recorded in the Solano County Recorder’s Office on February 7, 2023, at 3:11 p.m. in Book 26 of Maps of Assessment and Community Facilities Districts at Page 64, as Document No. 202300005079 (the “Boundary Map”); and

In the Resolution of Formation, the City Council, among other things, provided for the levy of special taxes upon the land within the CFD and the improvement areas therein to finance certain public facilities and services described in Exhibit A to the Resolution of Formation and approved a rate and method of apportionment of special taxes for Improvement Area No. 1 (the “Improvement Area No. 1 Rate and Method”); and

In the City Council’s Resolution No. 2023-32 adopted on February 21, 2023 (the “Resolution Determining Necessity”), the City Council determined the necessity for the City to incur bonded indebtedness in one or more series (i) on behalf of Improvement Area No. 1 in an aggregate amount not to exceed $90,000,000 (the “Improvement Area No. 1 Bonded Indebtedness Limit”) and (ii) on behalf of those portions of the CFD that are not included in Improvement Area No. 1 in an aggregate amount of not to exceed $15,000,000 (the “Non-Improvement Area No. 1 Bonded Indebtedness Limit”); and

Packet Page 508 of 530Attachment 7 Page 1 of 6

ORD. NO. 2024-09

At an election of the qualified electors in Improvement Area No. 1 held on February 21, 2023, the qualified electors approved, among other things, the levy of special taxes according to the Improvement Area No. 1 Rate and Method and the Improvement Area No. 1 Bonded Indebtedness Limit; and

A Notice of Special Tax Lien, which included the Improvement Area No. 1 Rate and Method as Exhibit B (the “Notice of Special Tax Lien”), was recorded in the real property records of Solano County on March 6, 2023, as Document No. 202300009062; and

Pursuant to Ordinance No. 2023-05, introduced by the City Council on February 21, 2023, and adopted on March 21, 2023 (the “Original Ordinance”), the City Council levied special taxes in Improvement Area No. 1 according to the Improvement Area No. 1 Rate and Method and on any parcels in the Future Annexation Area that are annexed into a Future Improvement Area pursuant to the Act at the rate and in ac cordance with the formula approved by the qualified electors in the Future Improvement Areas in the manner required by the Act; and

Pursuant to a petition received by the City, the City has been asked by the owner(s) of the required percentage of property in Improvement Area No. 1 to (i) amend the Improvement Area No. 1 Rate and Method to increase the rate of the special taxes, (ii) increase the Improvement Area No. 1 Bonded Indebtedness Limit from $90,000,000 to $100,000,000, and (iii) increase the Non-Improvement Area No. 1 Bonded Indebtedness Limit from $15,000,000 to $20,000,000; and

On September 3, 2024, the City Council adopted its Resolution No. 2024-222, entitled “Resolution of the City Council of the City of Fairfield Considering the Proposed Amendment and Restatement of the Rate and Method of Apportionment of Special Tax for Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023- 1 (One Lake Planning Area 5) and an Increase in the Amount of Bonded Indebtedness, Approving an Amended and Restated Deposit Agreement, and Approving Other Matters Related Thereto” (the “Resolution of Consideration”), pursuant to which the City Council, among other things (i) approved an increase in the Improvement Area No. 1 Indebtedness Limit to $100,000,000 (the “Amended Improvement Area No. 1 Bonded Indebtedness Limit”), subject to approval by two-thirds of the votes cast on the proposition of the Amended Improvement Area No. 1 Bonded indebtedness Limit at an election of the qualified electors in Improvement Area No. 1 and (ii) approved the proposed amended and restated Improvement Area No. 1 Rate and Method (the “Amended and Restated Improvement Area No. 1 Rate and Method”) in the form attached as Exhibit A to the Resolution of Consideration, subject to approval by two-thirds of the votes cast on the proposition of amending and restating the Improvement Area No. 1 Rate and Method at an election of the qualified electors in Improvement Area No. 1 ; and

Packet Page 509 of 530Attachment 7 Page 2 of 6

ORD. NO. 2024-09

Pursuant to the Resolution of Consideration, the City Council also approved the proposed increase in the Non-Improvement Area No. 1 Bonded Indebtedness Limit to $20,000,000, and further resolved that, as provided by the City Council in the Resolution Determining Necessity, (i) the designation as an improvement area of any territory annexing to the CFD, the maximum amount of bonded indebtedness for such improvement area, the rate and method of apportionment of special tax for such improvement area and the appropriations limit for the CFD shall be specified and approved in the unanimous approval executed by property owners in connection with their annexation to the CFD, subject to the conditions set forth in the Resolution of Formation and (ii) in the event all or a portion of the Future Annexation Area is annexed as one or more Future Improvement Areas (as defined in the Resolution Determining Necessity), the maximum bonded indebtedness of each such Future Improvement Area shall be identified in the unanimous approval of the property owners of the property to be annexed at the time of the annexation, as set forth in the Resolution of Formation, and the amount of the maximum bonded indebtedness for the Future Improvement Area shall be subtracted from the Non-Improvement Area No. 1 Bonded Indebtedness Limit; and

Pursuant to the Resolution of Consideration, the City Council set a public hearing for October 15, 2024; and

The City Clerk caused to be published in a newspaper of general circulation published in the area of the CFD a notice of the public hearing, stating that the Council will hold a public hearing on the proposed amendment and restatement of the Improvement Area No.1 Rate and Method, the proposed increase of the Improvement Area No. 1 Bonded Indebtedness Limit from $90,000,000 to $100,000,000, and the proposed increase of the Non-Improvement Area No. 1 Bonded Indebtedness Limit from $15,000,000 to $20,000,000; and

The public hearing was held October 15, 2024, and the proposed amendment and restatement of the Improvement Area No.1 Rate and Method and the proposed increase of the Improvement Area No. 1 Bonded Indebtedness Limit from $90,000,000 to $100,000,000 were not opposed by more than 50% of the owners of land not exempt from the special tax within Improvement Area No. 1; the County has confirmed that there were no registered voters in Improvement Area No. 1; and

Government Code Section 53338 authorizes the holding of a special election of the qualified electors in Improvement Area No. 1 on the issue of (i) approving the Amended and Restated Improvement Area No. 1 Rate and Method and (ii) approving the Amended Improvement Area No. 1 Bonded Indebtedness Limit; and

Following the public hearing, the City Council adopted a resolution entitled "Resolution of the City Council of the City of Fairfield Calling a Special Election To Amend and Restate the Rate and Method of Apportionment of Special Tax for Improvement Area No. 1 and Packet Page 510 of 530Attachment 7 Page 3 of 6

ORD. NO. 2024-09

Increase the Authorized Principal Amount of Bonded Indebtedness for Improvement Area No. 1," calling for a special landowner election of the qualified electors within Improvement Area No. 1 to be held on October 15, 2024; and

The special election was held on October 15, 2024, and the ballots were submitted to the City Clerk as the official conducting the election; and

The City Council subsequently adopted a resolution entitled “Resolution of the City Council of the City of Fairfield Declaring Results of Special Election to Amend and Restate the Rate and Method of Apportionment of Special Tax for Improvement Area No. 1 and Increase the Authorized Principal Amount of Bonded Indebtedness for Improvement Area No. 1” on October 15, 2024, in which it found that two-thirds of the votes cast at the election were in favor of the ballot measure; and

Also on October 15, 2024, the City Council subsequently adopted a resolution entitled “Resolution of the City Council of the City of Fairfield Determining that an Amended and Restated Rate and Method of Apportionment of Special Tax for Improvement Area No. 1 and an Increase in the Authorized Principal Amount of Bonded Indebtedness for Improvement Area No. 1 are Lawfully Authorized, and Approving an Increase in the Non - Improvement Area No. 1 Bonded Indebtedness Limit” (the “Resolution of Change”); and

As a result of the lawful authorization of the Amended and Restated Improvement Area No. 1 Rate and Method, the City Council wishes to amend and restate the Original Ordinance to provide for the levy of special taxes in Improvement Area No. 1 in accordance with the Amended and Restated Improvement Area No. 1 Rate and Method, beginning in fiscal year 2025-26.

THE CITY COUNCIL OF THE CITY OF FAIRFIELD DOES ORDAIN AS FOLLOWS:

SECTION 1. Effective with fiscal year 2025-26, by the passage of this Ordinance this City Council hereby levies special taxes within Improvement Area No. 1 and on any parcels in the Future Annexation Area that are annexed into Improvement Area No. 1 or a Future Improvement Area pursuant to the Act. The Improvement Area No. 1 Rate and Method and the Original Rate and Method shall remain in effect through fiscal year 2024-25.

With respect to Improvement Area No.1, the City shall levy the special taxes at the rate and in accordance with the Amended and Restated Improvement Area No. 1 Rate and Method set forth in the Resolution of Change, which Resolution of Change is by this reference incorporated herein.

With respect to Future Improvement Areas, the City shall levy the special taxes at the rate and in accordance with the formula approved by the qualified electors in the Future Improvement Areas in the manner required by the Act (each, a “Future Rate and Packet Page 511 of 530Attachment 7 Page 4 of 6

ORD. NO. 2024-09

Method”; together with the Amended and Restated Improvement Area No. 1 Rate and Method, the “Rate and Methods”). The special taxes are hereby levied commencing in fiscal year 2025-26 and in each fiscal year thereafter for the period provided in applicable Rate and Methods, as contemplated by the Resolution of Formation and the Resolution of Necessity, and all costs of administering the CFD.

SECTION 2. The Finance Director of the City is hereby authorized and directed each fiscal year to determine the specific special tax rate and amount to be levied for the next ensuing fiscal year for each parcel of real property within Improvement Area No. 1 and each Future Improvement Area, in the manner and as provided in the applicable Rate and Method.

SECTION 3. Except as provided in the Rate and Methods, properties or entities of the State, federal or local governments shall be exempt from any levy of the special taxes.

Other parcels shall be exempt from the levy of the special taxes as provided in the applicable Rate and Methods. In no event shall the special taxes be levied on any parcel within Improvement Area No. 1 or a Future Improvement Area (including any parcels in the Future Annexation Area that are annexed into the CFD) in excess of the maximum tax specified in the applicable Rate and Method.

SECTION 4. All of the collections of the special tax shall be used as provided for in the Act and in the Resolution of Formation including, but not limited to, the payment of principal and interest on bonds and other debt (as defined in the Act) issued by the City for the CFD with respect to Improvement Area No. 1 or a Future Improvement Area (the “Bonds”), the replenishment of the reserve fund for the Bonds, the payment of the costs of the Facilities and the Services, the payment of the costs of the City in administering the CFD, and the costs of collecting and administering the special tax.

SECTION 5. With respect to each improvement area of the CFD, the special taxes shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that this City Council may provide for other appropriate methods of collection by resolutions of this City Council. In addition, the provisions of Section 53356.1 of the Act shall apply to delinquent special tax payments. The City Manager (or designee) of the City is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of Solano in order to effect proper billing and collection of the special t ax, so that the special tax shall be included on the secured property tax roll of the County of Solano for fiscal year 2025-26 and for each fiscal year thereafter until the Bonds are paid in full or such longer period of time provided in the Rate and Methods.

SECTION 6. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within Improvement Area No. 1 Packet Page 512 of 530Attachment 7 Page 5 of 6

ORD. NO. 2024-09

or a Future Improvement Area, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within Improvement Area No. 1 or a Future Improvement Area (including any parcels in the Future Annexation Area that are annexed into the CFD) shall not be affected.

SECTION 7. The Mayor shall sign this Ordinance and the City Clerk shall cause the same to be published within 15 days after its passage at least once in a newspaper of general circulation published and circulated in the City.

SECTION 8. This Ordinance shall be effective 30 days following its adoption by the City Council. A summary of this Ordinance shall, within 15 days after passage, be published in accordance with Section 36933 of the Government Code of the State of California with the names of the City Councilmembers voting for and against it.

INTRODUCED at a regular meeting of the City Council of the City of Fairfield on the 15th day of October 2024, and

PASSED AND ADOPTED this ___ day of _________________ 2024, by the following vote:

AYES: MEMBERS: MOY/BERTANI/CARR/PANDURO/TONNESEN/VACCARO/WILLIAMS NOES: MEMBERS: _________________________________________________ ABSENT: MEMBERS: _________________________________________________ ABSTAIN: MEMBERS: _________________________________________________

_________________________________________________
MAYOR
ATTEST:
_________________________________________________

CITY CLERK

Packet Page 513 of 530Attachment 7 Page 6 of 6

Agenda Item No: 17.

AGENDA REPORT
DATE:October 15, 2024
TO:Mayor and City Council
FROM:David Gassaway, City Manager
SUBJECT:Public Hearing; and
Resolution 2024­257 of the City Council of the City of Fairfield Annexing Territory (Green Valley III Apartments) to Community Facilities District No. 2012­2 (Public Safety Services, Open Space Operation, and Park Maintenance) as Annexation No. 69, Authorizing the Levy of a Special Tax Within the Annexed Territory, and Submitting the Levy of a Special Tax to the Qualified Electors Thereof; and Resolution 2024­258 of the City Council of the City of Fairfield Declaring the Results of a Special Annexation Election in Territory Annexed to Community Facilities District No. 2012­2 (Public Safety Services, Open Space Operation, and Park Maintenance), Determining the Validity of Prior Proceedings, and Directing Recording of Amended Notice of Special Tax Lien for City of Fairfield Community Facilities District No. 2012­2 (Public Safety Services, Open Space Operation, and Park Maintenance) Annexation No. 69 (Green Valley III Apartments)
RECOMMENDED ACTION
Hold public hearing and adopt resolutions.

STATEMENT OF ISSUE
The conditions of approval for the Green Valley III Apartments development requires that the property be annexed to Community Facilities District No. 2012­2 (CFD 2012­2 or District). CFD 2012­2 was formed by the City to provide funding for public safety services, open space operation and park maintenance. A public hearing must be held on the question of whether to annex the property to CFD 2012­2. In the absence of majority protest, the attached resolutions annex the territory to CFD 2012­2, authorize the levy of a special tax within the annexed territory subject to voter approval, call an election to allow the property owner to cast a ballot on the levy of a special tax, and declare the result of such election.

DISCUSSION
By Resolution No. 2012­233, the City Council established CFD 2012­2, a Mello­Roos Community Packet Page 514 of 530

Agenda Item No: 17.AGENDA REPORTDATE:October 15, 2024 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Public Hearing; and Resolution 2024­257 of the City Council of the City of Fairfield Annexing Territory(Green Valley III Apartments) to Community Facilities District No. 2012­2 (Public SafetyServices, Open Space Operation, and Park Maintenance) as Annexation No. 69,Authorizing the Levy of a Special Tax Within the Annexed Territory, and Submitting theLevy of a Special Tax to the Qualified Electors Thereof; and Resolution 2024­258 of the City Council of the City of Fairfield Declaring the Results ofa Special Annexation Election in Territory Annexed to Community Facilities District No.2012­2 (Public Safety Services, Open Space Operation, and Park Maintenance),Determining the Validity of Prior Proceedings, and Directing Recording of AmendedNotice of Special Tax Lien for City of Fairfield Community Facilities District No. 2012­2(Public Safety Services, Open Space Operation, and Park Maintenance) AnnexationNo. 69 (Green Valley III Apartments)RECOMMENDED ACTIONHold public hearing and adopt resolutions.STATEMENT OF ISSUEThe conditions of approval for the Green Valley III Apartments development requires that the property beannexed to Community Facilities District No. 2012­2 (CFD 2012­2 or District). CFD 2012­2 wasformed by the City to provide funding for public safety services, open space operation and parkmaintenance. A public hearing must be held on the question of whether to annex the property to CFD2012­2. In the absence of majority protest, the attached resolutions annex the territory to CFD 2012­2,authorize the levy of a special tax within the annexed territory subject to voter approval, call an electionto allow the property owner to cast a ballot on the levy of a special tax, and declare the result of suchelection.

DISCUSSION
By Resolution No. 2012­233, the City Council established CFD 2012­2, a Mello­Roos Community Facilities District (CFD), with the intention that future development within the City would annex to this District. The special taxes collected from the property owners within the District are used to fund public safety services, open space operation, and park maintenance in the Fairfield area.

The property proposed for annexation is owned by Green Valley Land, LLC, and is located north­west of Business Center Drive and north­east of Green Valley Road within the boundary of assessor’s parcel number (APN) 0148­540­350, the boundaries of which are depicted on Exhibit A. The development on the property will be a 185­unit multifamily development (Green Valley III Apartments). Development of this property will change the property’s characteristics and manner in which the property will be used, thereby creating a need for more services funded by CFD 2012­2.

The City contracts with Willdan Financial Services for the preparation of resolutions and the completion of balloting procedures for the annexation to existing CFDs. This process is a specialty service that the City has contracted out since 1995 on an individual consultant services basis for each development requiring annexation into a Mello­Roos CFD.

The council adopted Resolution No. 2024­217 on September 3, 2024, to declare its intention to annex the territory to CFD 2012­2 and set a public hearing for October 15, 2024. Following the public hearing, and in the absence of a majority protest and approval by the property owner, the adoption of the attached resolutions will annex the territory to CFD 2012­2, call and hold an election of the property owner within the annexed territory, declare the results of the special election, and authorize the levy of the special taxes within the annexed territory, thereby concluding the annexation process.

Once the annexation is complete, the annexation territory will be designated as Annexation No. 69. The property owner of Annexation No. 69 will be required to pay annual special taxes for CFD 2012­2, beginning in fiscal year (FY) 2025­2026, as itemized on their property tax bill in accordance with the Rate and Method of Apportionment of Special Tax for CFD 2012­2.

FINANCIAL IMPACT
The estimated annual revenue to be received by the City (CFD 2012­2 Fund 332) for this annexation is estimated to be $131,621.49, which is based on the FY 2024­2025 maximum special tax rate for a high­density residential housing property. The CFD 2012­2 maximum special tax rates include an automatic annual consumer price index (CPI) adjustment. The process for the annexation is funded by the Developer and no general fund monies are used for this effort.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
If the council has any questions concerning the required annexation of this development, this item may be rescheduled until the next council meeting to allow staff to provide the necessary background information. However, if the annexation is not approved, the conditions of approval for this development would not be fulfilled and the development process would cease.

STAFF CONTACT
Valerie Standfill, Management Analyst
(707) 428­7055
[email protected]
COORDINATED WITH
N/A
Packet Page 515 of 530

Agenda Item No: 17.AGENDA REPORTDATE:October 15, 2024 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Public Hearing; and Resolution 2024­257 of the City Council of the City of Fairfield Annexing Territory(Green Valley III Apartments) to Community Facilities District No. 2012­2 (Public SafetyServices, Open Space Operation, and Park Maintenance) as Annexation No. 69,Authorizing the Levy of a Special Tax Within the Annexed Territory, and Submitting theLevy of a Special Tax to the Qualified Electors Thereof; and Resolution 2024­258 of the City Council of the City of Fairfield Declaring the Results ofa Special Annexation Election in Territory Annexed to Community Facilities District No.2012­2 (Public Safety Services, Open Space Operation, and Park Maintenance),Determining the Validity of Prior Proceedings, and Directing Recording of AmendedNotice of Special Tax Lien for City of Fairfield Community Facilities District No. 2012­2(Public Safety Services, Open Space Operation, and Park Maintenance) AnnexationNo. 69 (Green Valley III Apartments)RECOMMENDED ACTIONHold public hearing and adopt resolutions.STATEMENT OF ISSUEThe conditions of approval for the Green Valley III Apartments development requires that the property beannexed to Community Facilities District No. 2012­2 (CFD 2012­2 or District). CFD 2012­2 wasformed by the City to provide funding for public safety services, open space operation and parkmaintenance. A public hearing must be held on the question of whether to annex the property to CFD2012­2. In the absence of majority protest, the attached resolutions annex the territory to CFD 2012­2,authorize the levy of a special tax within the annexed territory subject to voter approval, call an electionto allow the property owner to cast a ballot on the levy of a special tax, and declare the result of suchelection.DISCUSSIONBy Resolution No. 2012­233, the City Council established CFD 2012­2, a Mello­Roos CommunityFacilities District (CFD), with the intention that future development within the City would annex to thisDistrict. The special taxes collected from the property owners within the District are used to fund publicsafety services, open space operation, and park maintenance in the Fairfield area.The property proposed for annexation is owned by Green Valley Land, LLC, and is located north­westof Business Center Drive and north­east of Green Valley Road within the boundary of assessor’s parcelnumber (APN) 0148­540­350, the boundaries of which are depicted on Exhibit A. The development onthe property will be a 185­unit multifamily development (Green Valley III Apartments). Development ofthis property will change the property’s characteristics and manner in which the property will be used,thereby creating a need for more services funded by CFD 2012­2.The City contracts with Willdan Financial Services for the preparation of resolutions and the completionof balloting procedures for the annexation to existing CFDs. This process is a specialty service that theCity has contracted out since 1995 on an individual consultant services basis for each developmentrequiring annexation into a Mello­Roos CFD.The council adopted Resolution No. 2024­217 on September 3, 2024, to declare its intention to annexthe territory to CFD 2012­2 and set a public hearing for October 15, 2024. Following the public hearing,and in the absence of a majority protest and approval by the property owner, the adoption of theattached resolutions will annex the territory to CFD 2012­2, call and hold an election of the propertyowner within the annexed territory, declare the results of the special election, and authorize the levy ofthe special taxes within the annexed territory, thereby concluding the annexation process.Once the annexation is complete, the annexation territory will be designated as Annexation No. 69. Theproperty owner of Annexation No. 69 will be required to pay annual special taxes for CFD 2012­2,beginning in fiscal year (FY) 2025­2026, as itemized on their property tax bill in accordance with theRate and Method of Apportionment of Special Tax for CFD 2012­2.FINANCIAL IMPACTThe estimated annual revenue to be received by the City (CFD 2012­2 Fund 332) for this annexation isestimated to be $131,621.49, which is based on the FY 2024­2025 maximum special tax rate for ahigh­density residential housing property. The CFD 2012­2 maximum special tax rates include anautomatic annual consumer price index (CPI) adjustment. The process for the annexation is funded bythe Developer and no general fund monies are used for this effort.PUBLIC CONTACT/ADVISORY BODY RECOMMENDATIONN/AALTERNATIVE ACTIONIf the council has any questions concerning the required annexation of this development, this item maybe rescheduled until the next council meeting to allow staff to provide the necessary backgroundinformation. However, if the annexation is not approved, the conditions of approval for this developmentwould not be fulfilled and the development process would cease.STAFF CONTACTValerie Standfill, Management Analyst(707) 428­[email protected] COORDINATED WITH
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ATTACHMENTS:

Description
Proposed Resolution Annexing Territory
Exhibit A Boundary Map
Exhibit A – Ballot
Proposed Resolution Declaring Results
Exhibit A – Declaring Results
REVIEWERS:

Reviewer Action Date
Panganiban, Ryan Approved 9/30/2024 ­ 8:35 PM
Chaudhary, Savita Approved 9/30/2024 ­ 8:35 PM
Beavers, Esther Approved 10/1/2024 ­ 10:58 AM
Beavers, Esther Approved 10/1/2024 ­ 10:58 AM
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CITY OF FAIRFIELD

RESOLUTION NO. 2024-257

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD ANNEXING TERRITORY (GREEN VALLEY III APARTMENTS) TO COMMUNITY FACILITIES DISTRICT NO. 2012-2 (PUBLIC SAFETY SERVICES, OPEN SPACE OPERATION, AND PARK MAINTENANCE) AS ANNEXATION NO. 69,

AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE ANNEXED TERRITORY, AND

SUBMITTING THE LEVY OF A SPECIAL TAX TO THE QUALIFIED ELECTORS THEREOF

WHEREAS, this City Council, on September 3, 2024 adopted Resolution No. 2024-217 (Resolution of Intention) stating its intention to annex certain territory to the City’s existing Community Facilities District No. 2012-2 (Public Safety Services, Open Space Operation, and Park Maintenance) (CFD 2012-2), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code) (Act); and

WHEREAS, a copy of the Resolution of Intention, incorporating a desc ription and map of the proposed boundaries of the territory to be annexed to CFD 2012-2 (Territory) and stating the facilities and services (Services) to be provided and the rate and method of apportionment of the special tax to be levied within the CFD to pay for the Services (Rate and Method), is on file with the city clerk and the provisions thereof are fully incorporated herein by this reference as if fully set forth herein; and

WHEREAS, the Resolution of Intention set October 15, 2024, as the date of the public hearing on the proposed annexation of the Territory to CFD 2012-2; and

WHEREAS, notice of the public hearing was published in accordance with the Act; and

WHEREAS, on October 15, 2024, this council held a public hearing as required by the Act and the Resolution of Intention relative to the proposed annexation of territory to CFD 2012 -2; and

WHEREAS, at said hearing, interested persons desiring to be heard on all matters pertai ning to the annexation of the Territory to CFD 2012-2 and the levy of said special taxes within the Territory were heard, and a full and fair hearing was held, evidence was presented to this council regarding the annexation and special taxes, and this council is fully advised as to all matters relating to the annexation of the Territory to CFD 2012-2 and the special taxes; and

WHEREAS, prior to the time fixed for said hearing, written protests had not been filed with the city clerk against the proposed annexation of the Territory to CFD 2012-2 by (i) 50% or more of the registered voters or six registered voters, whichever is more, residing in CFD 2012 -2, or (ii) or more of the registered voters, or six registered, whichever is more, residing in the Territo ry, or (iii) owners of one-half or more of the area of land in CFD 2012-2 and not exempt from the Packet Page 517 of 530Attachment 1 Page 1 of 4

RES. NO. 2024-257

levy of the special tax, or (iv) owners of one-half or more of the area of land in the Territory and not exempt from the levy of the special tax; and

WHEREAS, the special tax proposed to be levied in the Territory to pay for the cost of the Services, including incidental expenses, has not been precluded by a majority protest pursuant to Section 53324 of the Act; and

WHEREAS, Annexation Map No. 69 to CFD 2012-2 has been filed with the county recorder of the County of Solano, which map shows the Territory to be annexed to the CFD in these proceedings, and a copy thereof is on file with the city clerk.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The above recitals are true and correct and made a part hereof.

Section 2. All prior proceedings taken by this council, with respect to CFD 2012-2 and the proposed annexation of the Territory thereto, have been duly considered and are hereby determined to be valid and in conformity with the Act.

Section 3. This council determines that the project proposed for the Territory will intensify the use of the property, creating a need for more Services under CFD 2012-2. The Services that CFD 2012-2 is authorized to finance are in addition to those provided in or required for the territory within CFD 2012-2 and will not replace existing services.

Section 4. The description and map of the boundaries of the Territory, as described in said Annexation No. 69 to the CFD, on file with the city clerk, are hereby finally approved, are incorporated herein by reference, and shall be included within the boundaries of CF D 2012-2, and said Territory is hereby ordered annexed to CFD 2012-2, subject to voter approval of the levy of the special taxes therein as hereinafter provided.

Section 5. The provisions of the Resolution of Intention, which this council has heretofor e adopted, are by this reference incorporated herein, as if fully set forth herein.

Section 6. It is the intention of this council that, except where funds are otherwise available to pay for the Services, a special tax, secured by recordation of a continuing lien against all non- exempt real property in the Territory, will be levied annually within the boundaries of the Territory from and after the annexation of the Territory to CFD 2012-2. The special taxes shall be those as originally authorized through the formation of CFD 2012-2 and adopted by ordinance of the legislative body of CFD 2012-2. For particulars, reference is hereby made to the Rate and Method. The special tax is hereby authorized, subject to approval by two-thirds of the votes cast Packet Page 518 of 530Attachment 1 Page 2 of 4

RES. NO. 2024-257

within the Territory, commencing with fiscal year (FY) 2025-2026, in accordance with the Rate and Method, and procedures of the Act within the boundaries of the Territory to pay for the costs of the Services, including incidental expenses.

Section 7. Pursuant to the provisions of the Act, the proposition of the levy of the special tax within the Territory shall be submitted to the voters within the Territory at an election called therefore as hereinafter provided.

Section 8. This council hereby finds that fewer than 12 persons have been registered to vote within the Territory for each of the 90 days preceding the close of the public hearing heretofore conducted and concluded by this council for the purposes of these annexation proceedings.

Accordingly, and pursuant to Section 53326 of the Act, this council finds that for purposes of these proceedings, the qualified electors are the landowners within the Territory and that the vote shall be by said landowners, each having one vote for each acre or each portion thereof such landowner owns in the Territory.

Section 9. Pursuant to Section 53326 of the Act, the election shall be conducted by mail ballot, in accordance with the applicable provisions of the California Elections Code governing mail ballot elections of cities, and in particular, the provisions of Division 4 (commencing with Section 4000), of that code, insofar as they have not been waived by the unanimous consent of all landowners of the Territory.

Section 10. This council calls a special election to consider the measure described in the ballot referred to in Section 11 below. The election will be held on October 15, 2024, (Election Day) in the office of the city clerk at City Hall, located at 1000 Webster Street, Fairfield, California.

Section 11. The city clerk will be the election official to conduct the election and has caused to be provided to each landowner in the Territory, a ballot in the form of Exhibit A hereto, which is hereby approved.

Section 12. The city clerk has accepted the ballots of the qualified electors received prior to 6:00 p.m. on Election Day, whether received by mail or by personal delivery.

Section 13. This council hereby finds that the provisions of Section 53326 of the Act requiring a minimum of 90 days to elapse before said election is for the protection of voters, that the voters have waived such requirement, and that the date for the election hereinabove specified is established accordingly.

PASSED AND ADOPTED this 15th day of October 2024, by the following vote:

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RES. NO. 2024-257

AYES: COUNCILMEMBERS: MOY / BERTANI / CARR / PANDURO /TONNESEN /VACCARO/WILLIAMS

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

MAYOR
ATTEST:

CITY CLERK

Packet Page 520 of 530Attachment 1 Page 4 of 4

Packet Page 521 of 530Attachment 2 Page 1 of 1

EXHIBIT A

City of Fairfield
Community Facilities District No. 2012-2
(Public Safety Services, Open Space Operation, and Park Maintenance) Annexation No. 69

OFFICIAL BALLOT

SPECIAL TAX ANNEXATION ELECTION

This ballot is for the special landowner election. You must return this ballot in the enclosed envelope to the office of the City Clerk of the City of Fairfield no later than 6:00 p.m. on October 15, 2024, either by mail or in person. The City Clerk’s office is located at City Hall, 1000 Webster Street, 4th Floor, Fairfield, California, 94533.

To vote, mark in the voting square after the word “YES” or after the word “NO”. For a list of acceptable marks, please refer to the back of this ballot.

If you wrongly mark, tear, or deface this ballot, return to the City Clerk of the City of Fairfield and obtain another.

BALLOT MEASURE: Shall the City of Fairfield, by and for its Community Facilities District No. 2012-2 (Public Safety Services, Open Space Operation, and Park Maintenance) (the “CFD”), be authorized to levy special taxes within the territory annexed to the CFD pursuant to and as described in the rate and method of apportionment (“RMA”) attached hereto as Exhibit A and incorporated herein and as also set forth in the Resolution of Intention of the City of Fairfield adopted by its Council on September 3, 2024?

YES:

NO:

By executing in the space provided below, you also confirm your waiver of the time limit pertaining to the conduct of the election and any requirement for notice of election and analysis and arguments with respect to the ballot measure, as such waivers are described and permitted by Section 53326 (a) and 53327 (b) of the California Government Code.

Acres Owned Within Territory Annexed:

Number of Votes:

Property Owner:

Property Owner/Authorized Representative Signature: ________________________

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CITY OF FAIRFIELD

RESOLUTION NO. 2024-258

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD DECLARING THE RESULTS OF A

SPECIAL ANNEXATION ELECTION IN TERRITORY ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2012-2 (PUBLIC SAFETY SERVICES, OPEN SPACE OPERATION, AND PARK

MAINTENANCE), DETERMINING THE VALIDITY OF PRIOR PROCEEDINGS, AND DIRECTING

RECORDING OF AMENDED NOTICE OF SPECIAL TAX LIEN FOR CITY OF FAIRFIELD COMMUNITY FACILITIES DISTRICT NO. 2012-2 (PUBLIC SAFETY SERVICES, OPEN SPACE OPERATION, AND PARK MAINTENANCE) ANNEXATION NO. 69 (GREEN VALLEY III APARTMENTS)

WHEREAS, in proceedings heretofore conducted by this City Council pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code) (Act), this council has heretofore adopted a resolution calling a special election of the qualified landowner electors in the territory of land annexed to Commun ity Facilities District No. 2012-2 (Public Safety Services, Open Space Operation, and Park Maintenance) (CFD 2012-2); and

WHEREAS, pursuant to the terms of the resolution, which is hereby incorporated herein by this reference, the special election has been held, and the city clerk has filed a Canvass and Statement of Results of Election (Canvass), a copy of which is attached hereto as Exhibit A; and

WHEREAS, this council has reviewed the Canvass and hereby approves it.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The above recitals are true and correct and made a part hereof.

Section 2. The issue presented at the special election was the levy of a special tax within the territory annexed to CFD 2012-2, to be levied in accordance with the Rate and Method of Apportionment heretofore approved by this council as described in Resolution No. 2024-257, a “Resolution of the City Council of the City of Fairfield Annexing Territory (Green Valley III Apartments) to Community Facilities District No. 2012-2 (Public Safety Services, Open Space Operation, and Park Maintenance) as Annexation No. 69, Authorizing the Levy of a Special Tax Within the Annexed Territory, and Submitting the Levy of a Special Tax to the Qua lified Electors Thereof,” adopted October 15, 2024.

Section 3. Pursuant to the Canvass on file with the city clerk, the issue presented at the special election was approved by the landowners of the territory annexed to CFD 2012-2 by more than two-thirds of the landowners voting at the special election.

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RES. NO. 2024-258

Section 4. Pursuant to the voter approval, this council may levy special taxes within the territory annexed to CFD 2012-2 pursuant to Resolution No. 2024-257, adopted October 15, 2024, as heretofore provided in these proceedings.

Section 5. All prior proceedings taken by this council with respect to CFD 2012 -2 and the annexation of the territory thereto have been duly considered and are hereby determined to be valid and in conformity with the Act.

Section 6. Within 15 days of the date hereof, the city clerk shall execute and cause to be recorded in the Solano County Recorder's Office an amendment to the Notice of Special Tax Lien as required by Section 3117.5 of the California Streets and Highway Code.

PASSED AND ADOPTED this 15th day of October 2024, by the following vote:

AYES: COUNCILMEMBERS: MOY / BERTANI / CARR / PANDURO /TONNESEN / VACCARO / WILLIAMS

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

MAYOR
ATTEST:

CITY CLERK
Packet Page 524 of 530Attachment 4 Page 2 of 2

Exhibit A
City of Fairfield
Community Facilities District No. 2012-2
(Public Safety Services, Open Space Operation, and Park Maintenance) Annexation No. 69

CANVASS AND STATEMENT OF RESULTS OF ELECTION

I hereby certify that on this date, I canvassed the returns of the election held on October 15, 2024, in the territory annexed to Community Facilities District No. 2012-2 (Public Safety Services, Open Space Operation, and Park Maintenance) of the City of Fairfield which election is designed as the Special Tax Annexation Election, and the cast for and against the measure are as follows and the total as shown for and against the measure are full, true and correct:

City of Fairfield Community Facilities District
No. 2012-2 (Public Safety Services, Open
Space Operation, and Park Maintenance)
Qualified
Landowner
Votes Votes Cast YES NO
Annexation No. 69 Special Tax Annexation
Election, October 15, 2024 6

BALLOT MEASURE: Shall the City of Fairfield, by and for its Community Facilities District No. 2012-2 (Public Safety Services, Open Space Operation, and Park Maintenance) (the “CFD”) be authorized to levy special taxes within the territory annexed to the CFD pursuant to and as described in the Resolution of Intention of the City of Fairfield adopted by its Council on June 4, 2024?

IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND THIS 15TH DAY OF OCTOBER, 2024.

CITY OF FAIRFIELD

By:________________________
City Clerk
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Agenda Item No: 18.

AGENDA REPORT
DATE:October 15, 2024
TO:Mayor and City Council
FROM:David Gassaway, City Manager
SUBJECT:Public Hearing; and
Resolution 2024­259 of the City Council of the City of Fairfield Adopting Fare Structure Changes for FAST Fixed Route Local Service
RECOMMENDED ACTION
Hold public hearing and adopt resolution.

STATEMENT OF ISSUE
Since the COVID­19 pandemic, FAST Transit (FAST) has been diligently working to restore ridership to pre­pandemic levels. As part of restoring ridership, FAST is proposing to offer free fares for youth as an incentive to ride on FAST local fixed routes. This proposed change would become effective on December 1, 2024. The proposed free rides would not apply to FAST Connect on demand microtransit services and FAST Connect Americans with Disability Act (ADA) services.

The City Council will also consider FAST’s proposal to accept only Clipper Cards and paratransit passes on all fixed route services, microtransit (FAST Connect), and paratransit (FAST Connect ADA).

No longer accepting cash will save FAST annual Loomis administrative pick up and counting costs of approximately $29,764 in fiscal year 2024­2025 and estimated administrative costs of $30,657 annually thereafter. It will also mean the City would save $3­$4 million dollars by not having to purchase and replace fareboxes on all vehicles in 1­2 years. As proposed, these savings would be refocused to address increased operating and capital expenses that FAST needs in order to address the state mandate requiring that all transit vehicles be zero­emission by 2040.

DISCUSSION
For several years, the Metropolitan Transportation Commission (MTC) has been working with operators to reduce the fare media used by Bay Area transportation agencies to allow for consistency and ease of travel between regional systems. In 2025, MTC will be mandating Bay Area transportation agencies like FAST to have riders only use the regional Clipper Card to pay fares.

Prior to the COVID­19 pandemic, the State’s Transportation Development Act (TDA) required that Packet Page 526 of 530

Agenda Item No: 18.AGENDA REPORTDATE:October 15, 2024 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Public Hearing; and Resolution 2024­259 of the City Council of the City of Fairfield Adopting Fare StructureChanges for FAST Fixed Route Local ServiceRECOMMENDED ACTIONHold public hearing and adopt resolution.STATEMENT OF ISSUESince the COVID­19 pandemic, FAST Transit (FAST) has been diligently working to restore ridership topre­pandemic levels. As part of restoring ridership, FAST is proposing to offer free fares for youth as anincentive to ride on FAST local fixed routes. This proposed change would become effective onDecember 1, 2024. The proposed free rides would not apply to FAST Connect on demand microtransitservices and FAST Connect Americans with Disability Act (ADA) services.The City Council will also consider FAST’s proposal to accept only Clipper Cards and paratransitpasses on all fixed route services, microtransit (FAST Connect), and paratransit (FAST Connect ADA).No longer accepting cash will save FAST annual Loomis administrative pick up and counting costs ofapproximately $29,764 in fiscal year 2024­2025 and estimated administrative costs of $30,657annually thereafter. It will also mean the City would save $3­$4 million dollars by not having to purchaseand replace fareboxes on all vehicles in 1­2 years. As proposed, these savings would be refocused toaddress increased operating and capital expenses that FAST needs in order to address the statemandate requiring that all transit vehicles be zero­emission by 2040.DISCUSSIONFor several years, the Metropolitan Transportation Commission (MTC) has been working with operatorsto reduce the fare media used by Bay Area transportation agencies to allow for consistency and easeof travel between regional systems. In 2025, MTC will be mandating Bay Area transportation agencieslike FAST to have riders only use the regional Clipper Card to pay fares.

Prior to the COVID­19 pandemic, the State’s Transportation Development Act (TDA) required that transit agencies recover 20% of their expenses through fares. The State has suspended this requirement through June 30, 2026, to allow agencies to focus on ridership recovery efforts post pandemic. The State is now evaluating whether to permanently eliminate farebox recovery as a performance measure and instead identify different criteria to evaluate transit agency performance.

Nationally, many transit agencies are already offering free fares to youth (ages 6­18) on their local fixed routes and have experienced up to a 100% increase in ridership. FAST believes offering free fares to youth will incentivize the use of FAST fixed routes. However, if the State reinstates the 20% farebox recovery requirement, FAST would need to restore fares for youth.

The Fairfield­Suisun Unified School District (FSUSD) recently contacted FAST staff that FSUSD was experiencing a few difficulties providing homeless, at risk, and low­income students with Clipper passes that are distributed to increase these student’s school attendance. Clipper encourages all card holders to register their cards to ensure lost or stolen cards are returned to their owner.  FSUSD, however, is required to protect student confidentiality and cannot fully disclose all information required to register a Clipper card.  FAST offering free passes to youth is a ‘win­win’ partnership with FSUSD.

FSUSD would receive additional state funding through increased attendance and maintain required confidentiality, while FAST would experience increased use and ridership.

Pass sales at the Fairfield Transportation Center have significantly decreased in recent years. This is due to Clipper making it easier and more convenient for riders to purchase passes directly online or by using a phone application. Almost all riders use a credit or debit card to add funds to their Clipper card.

Riders still needing to use cash to add funds or purchase a pass will still be able to go to Bay Area Walgreens outlets to use cash to replenish their Clipper card.

FAST staff recommends that the council approve free fares for youth on FAST local fixed routes with the understanding that if the State does reinstate a farebox recovery measure after June 30, 2026, FAST will need to reinstate fares for youth. FAST staff will also carefully monitor any adverse impacts to no longer accepting cash and make adjustments, as needed.

FINANCIAL IMPACT
The estimated loss of fare revenue annually is estimated at $65,000. However, losses would be partially recouped due to FAST no longer having to bear the current administrative expenses associated with accepting cash. Lowering of fare revenue also maximizes the City’s use of its Federal Transit Administration funds since fare revenue is deducted from the total eligible expenses prior to determining the 50% federal match amount the City can claim when drawing down operations funding.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
A public notice requesting comments on the proposed changes was published in the local Daily Republic newspaper on September 15, 2024, and October 9, 2024. FAST also posted this notice on its website at  www.fasttransit.org . FAST has received no public comments concerning these proposed changes.

ALTERNATIVE ACTION
The council may choose not to adopt the proposed changes, but this is not recommended as that would hinder FAST’s effort to continue restoring ridership to pre­pandemic levels. Not adopting the proposed changes would also adversely impact homeless, at risk or low­income students from attending classes.

STAFF CONTACT
Diane Feinstein, Transportation Manager
(707) 434­3808
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Agenda Item No: 18.AGENDA REPORTDATE:October 15, 2024 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Public Hearing; and Resolution 2024­259 of the City Council of the City of Fairfield Adopting Fare StructureChanges for FAST Fixed Route Local ServiceRECOMMENDED ACTIONHold public hearing and adopt resolution.STATEMENT OF ISSUESince the COVID­19 pandemic, FAST Transit (FAST) has been diligently working to restore ridership topre­pandemic levels. As part of restoring ridership, FAST is proposing to offer free fares for youth as anincentive to ride on FAST local fixed routes. This proposed change would become effective onDecember 1, 2024. The proposed free rides would not apply to FAST Connect on demand microtransitservices and FAST Connect Americans with Disability Act (ADA) services.The City Council will also consider FAST’s proposal to accept only Clipper Cards and paratransitpasses on all fixed route services, microtransit (FAST Connect), and paratransit (FAST Connect ADA).No longer accepting cash will save FAST annual Loomis administrative pick up and counting costs ofapproximately $29,764 in fiscal year 2024­2025 and estimated administrative costs of $30,657annually thereafter. It will also mean the City would save $3­$4 million dollars by not having to purchaseand replace fareboxes on all vehicles in 1­2 years. As proposed, these savings would be refocused toaddress increased operating and capital expenses that FAST needs in order to address the statemandate requiring that all transit vehicles be zero­emission by 2040.DISCUSSIONFor several years, the Metropolitan Transportation Commission (MTC) has been working with operatorsto reduce the fare media used by Bay Area transportation agencies to allow for consistency and easeof travel between regional systems. In 2025, MTC will be mandating Bay Area transportation agencieslike FAST to have riders only use the regional Clipper Card to pay fares. Prior to the COVID­19 pandemic, the State’s Transportation Development Act (TDA) required thattransit agencies recover 20% of their expenses through fares. The State has suspended thisrequirement through June 30, 2026, to allow agencies to focus on ridership recovery efforts postpandemic. The State is now evaluating whether to permanently eliminate farebox recovery as aperformance measure and instead identify different criteria to evaluate transit agency performance.Nationally, many transit agencies are already offering free fares to youth (ages 6­18) on their local fixedroutes and have experienced up to a 100% increase in ridership. FAST believes offering free fares toyouth will incentivize the use of FAST fixed routes. However, if the State reinstates the 20% fareboxrecovery requirement, FAST would need to restore fares for youth.The Fairfield­Suisun Unified School District (FSUSD) recently contacted FAST staff that FSUSD wasexperiencing a few difficulties providing homeless, at risk, and low­income students with Clipperpasses that are distributed to increase these student’s school attendance. Clipper encourages all cardholders to register their cards to ensure lost or stolen cards are returned to their owner.  FSUSD,however, is required to protect student confidentiality and cannot fully disclose all information required toregister a Clipper card.  FAST offering free passes to youth is a ‘win­win’ partnership with FSUSD.FSUSD would receive additional state funding through increased attendance and maintain requiredconfidentiality, while FAST would experience increased use and ridership.  Pass sales at the Fairfield Transportation Center have significantly decreased in recent years. This isdue to Clipper making it easier and more convenient for riders to purchase passes directly online or byusing a phone application. Almost all riders use a credit or debit card to add funds to their Clipper card.Riders still needing to use cash to add funds or purchase a pass will still be able to go to Bay AreaWalgreens outlets to use cash to replenish their Clipper card.FAST staff recommends that the council approve free fares for youth on FAST local fixed routes with theunderstanding that if the State does reinstate a farebox recovery measure after June 30, 2026, FASTwill need to reinstate fares for youth. FAST staff will also carefully monitor any adverse impacts to nolonger accepting cash and make adjustments, as needed.FINANCIAL IMPACTThe estimated loss of fare revenue annually is estimated at $65,000. However, losses would be partiallyrecouped due to FAST no longer having to bear the current administrative expenses associated withaccepting cash. Lowering of fare revenue also maximizes the City’s use of its Federal TransitAdministration funds since fare revenue is deducted from the total eligible expenses prior todetermining the 50% federal match amount the City can claim when drawing down operations funding.PUBLIC CONTACT/ADVISORY BODY RECOMMENDATIONA public notice requesting comments on the proposed changes was published in the local DailyRepublic newspaper on September 15, 2024, and October 9, 2024. FAST also posted this notice on itswebsite at  www.fasttransit.org . FAST has received no public comments concerning these proposedchanges.ALTERNATIVE ACTIONThe council may choose not to adopt the proposed changes, but this is not recommended as that wouldhinder FAST’s effort to continue restoring ridership to pre­pandemic levels. Not adopting the proposedchanges would also adversely impact homeless, at risk or low­income students from attending classes.STAFF CONTACT Diane Feinstein, Transportation Manager
(707) 434­3808
[email protected]
COORDINATED WITH
Finance Department
ATTACHMENTS:

Description
Proposed Resolution
REVIEWERS:

Reviewer Action Date
Chaudhary, Savita Approved 9/30/2024 ­ 8:35 PM
Beavers, Esther Approved 10/1/2024 ­ 10:57 AM
Beavers, Esther Approved 10/1/2024 ­ 10:58 AM
Packet Page 528 of 530

CITY OF FAIRFIELD

RESOLUTION NO. 2024-259

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD ADOPTING FARE STRUCTURE

CHANGES FOR FAST FIXED ROUTE LOCAL SERVICE

WHEREAS, the City Council authorized staff to initiate its first Comprehensive Operational Analysis (COA) to identify changes needed for FAST to be a high-functioning and sustainable transit network post-pandemic in December 2020; and

WHEREAS, the COA initiative, called FAST Forward, reviewed past data, performed a market survey, evaluated where and when Fairfield residents travel, and conducted extensive public outreach to solicit feedback; and

WHEREAS, the council approved the FAST Forward fare and service recommendations that considered what Fairfield residents want from public transportation while balancing the needs of existing riders; and

WHEREAS, staff is now recommending FAST offer free fares for youth (ages 6-18) to increase post-pandemic ridership; and

WHEREAS, a public hearing was noticed and held before council approval of the fare changes.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The city manager, public works director, and/or the transportation manager are designated to complete all actions to implement fare recommendations.

Section 2. If the State of California reinstates the Transportation Development Act farebox recovery performance measure after June 30, 2026, FAST is authorized to reinstate fares for youth, ages 6-18.

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RES. NO. 2024-259

PASSED AND ADOPTED this 15th day of October 2024, by the following vote:

AYES: MEMBERS: MOY/BERTANI/CARR/PANDURO/TONNESEN/VACCARO/WILLIAMS NOES: MEMBERS: _________________________________________________ ABSENT: MEMBERS: _________________________________________________ ABSTAIN: MEMBERS: _________________________________________________

_________________________________________________
MAYOR
ATTEST:
___________________________

CITY CLERK

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