Agenda — Firebaugh City Council, May 4, 2026 (part 1 of 2)

1 MEETING AGENDA
The City Council / Successor Agency of the City of Firebaugh Vol. No. 26/05-04
LOCATION OF MEETING: Andrew Firebaugh Community Center
1655 13th Street,
Firebaugh, CA 93622
DATE / TIME: May 4, 2026/5:30 pm

CALL TO ORDER
ROLL CALL Mayor Freddy Valdez
Mayor Pro-Tem Silvia Renteria
Council Member Brady Jenkins
Council Member Felipe Perez
Council Member Elsa Lopez
In compliance with the Americans with Disabilities Act, if you need special assistance to access the Andrew Firebaugh Community Center to participate in this meeting, please contact the Deputy City Clerk at (559) 659-2043. Notification 48 hours prior to the meeting will enable the city to make reasonable arrangements to ensure accessibility to the Andrew Firebaugh Community Center.

Any writing or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at City Hall, in the Deputy City Clerk’s office, during normal business hours.

PLEDGE OF ALLEGIANCE

APPROVAL OF THE AGENDA

PRESENTATION

PUBLIC COMMENT
Any person or persons wishing to address the City Council on any matter that is not on the agenda may do so at this time. Individuals must limit their comments to three minutes. Issues raised during Public Comments are informational only, and the Council cannot take action at this time. All comments should be directed to the Mayor and not to individual Councilmembers or staff members.

CONSENT CALENDAR
Items listed on the calendar are considered routine and are acted upon by one motion unless any Council member requests separate action. Typical items include minutes, claims, adoption of ordinances previously introduced and discussed, execution of agreements, and other similar items.

1. APPROVAL OF MINUTES – Regular Meeting Minutes from April 20, 2026.

2. APPROVAL OF MINUTES – Special Meeting Minutes from April 27, 2026.

3. RESOLUTION NO. 26-21 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FIREBUAGH

CALLING AND GIVING NOTICE OF THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD IN SAID CITY ON TUESDAY NOVEMBER 3, 2026, FOR THE ELECTION OF CERTAIN OFFICERS

OF SAID CITY AND REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF FRESNO TO

CONSOLIDATE AND CANVASS THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 3, 2026 WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THAT DATE PURSUANT TO CALIFORNIA ELECTIONS CODE SECTION 10400 ET SEQ.; TO PERMIT THE COUNTY

CLERK/REGISTRAR OF VOTERS OF THE COUNTY OF FRESNO TO RENDER SPECIFIED SERVICES

TO THE CITY OF FIREBAUGH RELATING TO THE CONDUCT OF SAID GENERAL MUNICIPAL ELECTION PURSUANT TO CALIFORNIA ELECTIONS CODE SECTION 10002; AND AUTHORIZING REIMBURSEMENT FUNDS TO PAY FOR SAID SERVICES.
2 4. CITY OF FIREBAUGH PROCLAMATION – 57TH ANNUAL PROFESSIONAL MUNICIPAL CLERKS WEEK – MAY 3 – 9, 2026

5. ORD. NO. 26-01 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FIREBAUGH AMENDING CHAPTER 8 OF THE FIREBAUGH MUNICIPAL CODE RELATING TO THE BUILDING AND HOUSING CODES – SECOND READING.

6. RESOLUTION NO. 26-24 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FIREBAUGH OF INTENT TO LEVY AND COLLECT THE ANNUAL ASSESSMENTS FOR ASSESSMENT DISTRICT NO. 1 AND SETTING A PUBLIC HEARING - (Pursuant to the Landscaping and Lighting Act of 1972).

PUBLIC HEARING

7. ORDINANCE NO. 26-02 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FIREBAUGH APPROVING PLANNED DEVELOPMENT PERMIT NO. PDP2025-01 TO ESTABLISH SITE-SPECIFIC DEVELOPMENT STANDARDS FOR PROPERTY LOCATED AT 199 N STREET (APNs 007-050-15 AND 007- 050-16) – FIRST READING.

Recommended Action: Council receives comments and waives the first reading of Ord. 26-02.

8. RESOLUTION NO. 26-20 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FIREBAUGH APPROVING VESTING TENTATIVE TRACT MAP NO. 6535 FOR A 13-LOT SINGLE-FAMILY RESIDENTIAL SUBDIVISION AND STORMWATER BASIN LOCATED AT 199 N STREET (APNs 007-050- 15 AND 007-050-16).

Recommended Action: Council receives comments and approves Res. 26-20.

NEW BUSINESS

9. RESOLUTION NO. 26-22 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FIREBAUGH,

CALIFORNIA, APPROVING EXTENSION OF DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FIREBAUGH AND ELEMENT 7 FIREBAUGH LLC.

Recommended Action: Council receives comments and approves Res. 26-22.

10. RESOLUTION NO. 26-23 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FIREBAUGH ADOPTIONG THE CITY OF FIREBAUGH INVESTMENT POLICY.

Recommended Action: Council receives comments and approves Res. 26-23.

11. THE CITY COUNCIL OF THE CITY OF FIREBAUGH TO DISCUSS AND REVIEW PRELIMINARY SALARY AND BENEFITS BUDGET REPORT.

Recommended Action: Council receives comments, Informational item only.

12. THE CITY COUNCIL OF THE CITY OF FIREBAUGH TO DISCUSS AND REVIEW PUBLIC NUISANCE VACANT LOT FEE OPTIONS.

Recommended Action: Council receives comments and gives staff direction.

13. THE CITY COUNCIL OF THE CITY OF FIREBAUGH TO DISCUSS AND REVIEW THE INFORMATION REPORT REGARDING CONSOLIDATION OF TELECOMMUNICATION SERVICES.

Recommended Action: Informational item only.
3 STAFF REPORTS – Enclosed.

COUNCIL MEMBERS AGENDA ITEMS

PUBLIC COMMENT ON CLOSED SESSION ITEMS ONLY

CLOSED SESSION

14. Government Code Section 54956.9
POTENTIAL LITIGATION – ONE (1) CASE

15. Government Code Section 54957.6
PUBLIC EMPLOYEE CONTRACT NEGOTIATIONS/EVALUATION: FINANCE DIRECTOR

ANNOUNCEMENT AFTER CLOSED SESSION

ADJOURNMENT
Certification of posting the agenda:

I declare under penalty of perjury that I am employed by the City of Firebaugh and that I posted this agenda on the bulletin at City Hall on May 1, 2026, at 5:00 pm, by Rita Lozano, Deputy City Clerk.

MEETING MINUTES
The City Council/Successor Agency of the City of Firebaugh Vol. No. 26-04-20
Location of Meeting: Andrew Firebaugh Community Center
1655 13th Street, Firebaugh, CA 93622
Date/Time: April 20, 2026/5:30 p.m.

CALL TO ORDER Meeting was called to order by Mayor Valdez at 5:30 p.m.

ROLL CALL Mayor Freddy Valdez
Mayor Pro Temp Silvia Renteria
Council Member Brady Jenkins
Council Member Felipe Perez
Council Member Elsa Lopez
ABSENT
OTHERS: City Attorney Nick Matoian; City Manager, Ben Gallegos; Deputy City Clerk, Rita Lozano; Finance Director, Pio Martin; Public Works Director, Micheal Molina; Battalion Chief, Hector Marin; City Engineer, Mario Gouviea; Jeniffer Fraser, Ana Maria Fuentes, Jose Negrate, Loretta Guerra, Olivia Etchegoinberry, Wanda Breshers, Hortencia Mack & others.

PLEDGE OF ALLEGIANCE Mayor Valdez led the Pledge of Allegiance.

APPROVAL OF THE AGENDA
Motion to approve the agenda with an amendment to add a presentation from the Firebaugh Falcon Football team by Council Member Jenkins, seconded by Council Member Perez, motion passed by a 5-0 vote.

PRESENTATION

PUBLIC COMMENT
Jennifer Fraser expressed her concern about a six-year-old that stated he wanted to help his parents get out of their environment, he comes from a migrant family and Fraser stated he is scared of the slum lord. Mrs. Fraser stated she doesn’t feel like the city is helping to resolve her reported concerns and ask how she can get help. She will continue to seek help form the city and other agencies and attend City Council meetings to state her concerns until the issues are addressed or resolved.

CONSENT CALENDAR

1. APPROVAL OF MINUTES – Regular Meeting Minutes from April 6, 2026.

2. WARRANT REGISTER – Period starting March 1, 2026, and ending March 31, 2026.

March 2026 General Warrants #49144 - #49251 $ 818,261.99 Payroll Warrants #72786 - #72810 $ 198,787.53
Total Warrants $ 1,017,049.52

3. CITY OF FIREBAUGH PROCLAMATION - Autism Acceptance & Awareness Month - April 2026 Motion to pull item # 3 – Proclamation by Council Member Valdez, seconded by Council Member Renteria, motion passed by a 5-0 vote.

Motion to approve Consent Calendar by Council Member Jenkins, seconded by Council Member Perez, motion passed by a 5-0 vote.

Motion to approve agenda item # 3 – Proclamation by Council Member Jenkins, seconded by Council Member Perez, motion passed by a 5-0 vote.

Return to agenda
City Council Minutes
April 20, 2026

PUBLIC HEARING

4. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FIREBAUGH AMENDING CHAPTER 8 OF THE FIREBAUGH MUNICIPAL CODE RELATING TO THE BUILDING AND HOUSING CODES – FIRST READING.

Hearing opened at 5:38 pm – Jennifer Fraser asked if updating or changing all of the codes allow to condemn a home or building. – Close Hearing at 5:40 pm.

Motion to waive the first reading by Council Member Jenkins, seconded by Council Member Perez, motion passed by a 5-0 vote.

NEW BUSINESS

5. RESOLUTION NO. 26-15 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FIREBAUGH REJECTING ALL BIDS RECEIVED FOR THE MALDONADO PARK PHASE III PROJECT, NO. 240005.00 AND AUTHORIZING AND DIRECTING STAFF TO RE-ADVERTISE AND SOLICIT NEW BIDS FOR THE PROJECT.

Motion to approve Resolution No. 26-15 by Council Member Jenkins, seconded by Council Member Perez, motion passed by a 5-0 vote.

6. RESOLUTION 26-16 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FIREBAUGH

APPROVING A DENSITY BONUS (FOR THE PACIFIC WEST COMMUNITIES DOWNTOWN MIXED-USE PROJECT).

Residents: Jennifer Fraser, Bianca Echaveste and Linda Espinoza all expressed their concerns of vandalism, crime, no space for kids and parking issues are all reasons why they are against this project.

Motion to approve Resolution No. 26-16 by Council Member Renteria, seconded by Council Member Perez, motion passed by a 5-0 vote.

7. RESOLUTION NO. 26-17 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FIREBAUGH SELECTING AND ACCEPTING PACIFIC WEST COMMUNITIES, INC. AS DEVELOPER FOR THE ROUND 10 AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES (AHSC) PROGRAM,

AUTHORIZING THE CITY OF FIREBAUGH TO BE THE JOINT APPLICANT PUBLIC PARTNER TO THE AHSC ROUND 10 PROGRAM AND AUTHORIZING PACIFIC WEST COMMUNITIES, INC.

TO BE THE JOINT APPLICANT WITH THE CITY OF FIREBAUGH FOR PURPOSES OF APPLYING TO THE AHSC ROUND 10 PROGRAM.

Motion to approve Resolution No. 26-17 by Council Member Jenkins, seconded by Council Member Perez, motion passed by a 5-0 vote.

8. RESOLUTION NO. 26-18 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FIREBAUGH AUTHORIZING THE USE OF REAP 2.0 FUNDING, UP TO FIVE HUNDRED THOUSAND DOLLARS ($500,000.00), TO SUPPORT THE FIREBAUGH DOWNTOWN INFILL INITIATIVE AND

AUTHORIZING THE CITY ATTORNEY TO DRAFT A FUNDING AGREEMENT CONTINGENT ON THE AWARD OF ROUND 10 AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES (AHSC) PROGRAM FUNDS.

Motion to approve Resolution No. 26-18 by Council Member Jenkins, seconded by Council Member Perez, motion passed by a 5-0 vote.

9. RESOLUTION NO. 26-19 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FIREBAUGH

AUTHORIZING EXECUTION OF AN OPTION TO LEASE REAL ESTATE AGREEMENT BETWEEN THE CITY OF FIREBAUGH AND PACIFIC WEST COMMUNITIES, INC.

Motion to approve Resolution No. 26-19 by Council Member Jenkins, seconded by Council Member Perez, motion passed by a 5-0 vote.

City Council Minutes
April 20, 2026

STAFF REPORTS
 Public Works Director, Micheal Molina – Nothing to report  Battalion Chief, Hector Marin – April 15th attended training, five (5) EMS core training, 13 properties were issued a weed abatement notice. Will be attending Autism Awareness event on April 25, 2026.  City Manager Ben Gallegos – Nothing to report.
 City Engineer, Mario Gouveia – Provided an update on the current projects.  Deputy City Clerk, Rita Lozano – Nothing to report.
 Finance Director, Pio Martin – Nothing to report.
 City Attorney, Nick Matoian – Nothing to report.
 Council Member, Elsa Lopez - Red Cross Event, would like to honor our own Local Volunteers that enhance whichever programs they support and Volunteer with.
 Council Member, Jenkins – Asked for an update about Clyde Fannon project, water park update, and asked Finance Director to provide info and look into consolidating Comcast, AT&T, and any other internet, phone services from all city sites and carriers to reduce cost.
 Council Member, Perez – Nothing to report.
 Council Member, Renteria – Nothing to report.
 Council Member Valdez – Nothing to report.

COUNCIL MEMBERS AGENDA ITEMS

PUBLIC COMMENT ON CLOSED SESSION ITEMS ONLY
Motion to enter closed session at 6:27 pm by Council Member Jenkins and seconded by Council Member Perez.

Motion passed by a 5-0 vote.

CLOSED SESSION

10. Government Code Section 54957(b)(1)
PUBLIC EMPLOYEE PERFORMANCE EVALUATION: Interim Police Chief.

Motion to enter open session at 6:58 pm by Council Member Jenkins and seconded by Council Member Perez.

Motion passed by a 5-0 vote.

ANNOUNCEMENT AFTER CLOSED SESSION
Nothing to report

ADJOURNMENT
Motion to adjourn at 6:59 pm by Council Member Jenkins and seconded by Council Member Perez. Motion passed by a 5-0 vote.

SPECIAL MEETING MINUTES
The City Council/Successor Agency of the City of Firebaugh Vol. No.26-04-27
Location of Meeting:

Date/Time:

CALL TO ORDER

ROLL CALL
Andrew Firebaugh Community Center
1655 l3th Street, Firebaugh,CA 93622
April 27, 2026 I 4t00 p.m.

Meeting was called to order by Mayor Valdez at 2:00 p.m.

Mayor Freddy Yaldez
Mayor Pro Temp Silvia Renteria
Council Member Brady Jenkins
ABSENT Council Member Elsa Lopez, Council Member Felipe Perez OTHERS: City Attorney, Christina D. Smith, Deputy City Clerk Rita Lozano PLEDGE OF ALLEGIANCE Council Member Valdez led the Pledge of Allegiance.

APPROVAL OF THE AGENDA
Motion to approve the agenda by Council Member Jenkins, seconded by Council Member Renteriu, motion passed by a 3-0 vote.

PUBLIC COMMENT
None

PUBLIC COMMENT ON CLOSED SESSION ITEMS ONLY
None
Motion to enter closed session at 4:02 p.m, by Council Member Jenkins and seconded by Council Member Renteriu.

Motion passed by a 3-0 vote.

CLOSED SESSION

1. Government Code Section 54957
PUBLIC EMPLOYEE APPOINTMENT/EMPLOYMENT: City Police Chief Motion to enter open session at 7:03 pm by Council Member Jenkins and seconded by Council Member Renteria.

Motion passed by a 3-0 vote.

ANNOUNCEMENT AFTER CLOSED SESSION
Council has exlended a conditional offer of employment to Fernando Campa for the position of Chief of Police.

ADJOURNMENT
Motion to adjourn at 7:04 pm by Council Member Jenkins and seconded by Council Member Renteriu. Motion passed by a 3-0 vote.

Return to agenda
RESOLUTION NO.26-21

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF' FIREBUAGH CALLING AND GIVING NOTICE OF'THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD IN SAID CITY ON TUESDAY NOVEMBER 3O 2026' FOR THE ELECTION OF CERTAIN

OFF'ICERS OF SAID CITY AND REQUESTING THE BOARD OF SUPERVISORS OF TITE

COUNTY OF F'RESNO TO CONSOLIDATE AND CANVASS THE GENERAL MTINICIPAL ELECTION TO BB HELD ON NOVEMBER 3, 2026 WITH THE STATEWIDE GENERAL

ELECTION TO BE HELD ON THAT DATE PURSUANT TO CALIFORNIA ELECTIONS CODE SECTION 10400 ET SEQ.; TO PERMIT THE COUNTY CLERMEGISTRAR OF VOTERS OF THE COUNTY OF' FRESNO TO RENDER SPECIF'IED SERVICES TO THE CITY OF'

FIREBAUGH RELATING TO THE CONDUCT OF' SAID GENERAL MUNICIPAL ELECTION PURSUANT TO CALIFORNIA ELECTIONS CODE SECTION 10002; AND AUTHORIZING

REIMBURSEMENT F'UNDS TO PAY FOR SAID SERVICES
WHEREAS, the next Statewide General Election to be held in the County of Fresno will take place on November 3,2026; and
WHEREAS, the City of Firebaugh intends to call and order a General Municipal Election on Tuesday, November 3,2026, for the election of two seats; each for a four-year term; and WHEREAS, it is the desire of the City Council of the City of Firebaugh to adopt a Resolution requesting the Board of Supervisors of the County of Fresno to consolidate said election with the Statewide Geneial Election pursuant to Part 3 of Division I 0 of the Elections Code of the State of California (commencing with Section 10400) to be held on the same date and that, within the City of Firebaugh, the precincts, vote center locations, ballot drop box locations, and election officersof the two (2) elections be the same; the County Clerk/Registrar of Voters canvass the returns of the General Municipal Election; and the election be held in all respecti as if there were only one (1) election; and
WHEREAS, it is the desire of the City Council of theCity of Firebaughto adopt a Resolution requesting the Board of Supervisors of the County of Fresno to render specified selices to the Cityof Firebaughrelating to the conduct of a General Municipal Election pursuant to Section 10002 ofthe Elections Code olthe State of California;and
WHEREAS, Section 10002 of the Elections Code of the State of California requires the City of Firebaugh to reimburse the County of Fresno in full for the services performed upon presentationof a Uiil to the City of Firebaugh.

WHEREAS, The City Council ofthe City of Firebaugh has determined that each candidate for elective office who submits a statement to be sent to the voters with the sample ballot shall be charged a sum not greater than the actual prorated cost of printing, handling and translating the candidate's statement, if any incuryed by the agency as a result of providing this service.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FIREBAUGH as follows:

SECTION 1. A General Municipal Election is called and ordered for the Cify of Firebaugh to be held on November 3, 2026, for the purpose of the election of two members of the City Council to ripresent the city for a four (4) year term.

Page 1 of 3 ends

Return to agenda
SECTION 2. Pursuant to the requirements of Section 10403 of the Elections Code of the State of California, the Board of Supervisors ofthe County ofFresno is hereby requested to consent and agree to the consolidation of the General Municipal Election and the Statewide General Election on November 3,2026.

SEQUON-}. ln accordance with the provisions of Section 10403 of the Elections Code of the State of California, the City Council of theCity of Firebaugh acknowledges that the consolidated election will be held and conducted in accordance withthe provisions of law regulating the Statewide General Election pursuant to Section 10418 of the Elections Code of the State of California.

SECTION 4. The Board of Supervisors of the County of Fresno is reque5ted to direct the County Clerk/Registrar of Voters to take any and all steps necessary for and related to the holding of the consolidated election in a manner consistent with law, including, without limitation: the provision of all election materials and equipment; publication of notices; the hiring, training and supervision of election officers and other election personnel; the printing and distribution of ballot materials; the translation of ballot materials; the collection of submitted ballots;the tallying and canvassing of votes; and the certification of election results.

SgQUONS. Pursuant to Section 10002 of the Elections Code of the State of California, the City Council of the City of Firebaugh authorizes reimbursement to the County of Fresno in full for the services to be performed as herein requested and that said sum be paid to the County of Fresno upon demand and presentation of a bill to theCity of Firebaugh.

SECTION 6. The candidate shall, if he/she elects to submit a statement, of no more than 200 words, to be i*tuOed with the sample ballot and sent to the registered voters, pay all costs associated with said election statement; Pursuant to California Elections Code Section 13307, the candidate is required to make an estimated pre-payment to the County at the time the candidate files the nomination papers.

THE FOREGOING RESOLUTIONWAS APPROVED AND ADOPTED bythe City Council oftheCity of Firebaugh at a regular meeting of the City Council held on lr4ay 4,2026,by the followingvote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED ATTEST:

Freddy Yaldez, Mayor Rita Lozano, Deputy City Clerk

Page 2 of 3 ends

?rocfarnation
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RO f T S S I O ryfAL 7vl'.Uyfi C I ? AL C LER 36'wr t x fuIay3-g,zoz6
'WfiBreas, (he Office of the ?rofessionaf Jvluniciyaf CferC., a time h"onoref anfvitaf yart of focaf goverrnnent exists throughout the worf6, anf 'WfiBreas, r'he Office of the ?rofessionnf Jvhuticiyaf C[erE is the offest arnong yu6ftc serltAnts, and
^Wfureas, lhe Office of the ?rofessionnf Jvh,miciyaf Cfertyrovifes the yrofessionaf ftrtT \etween the citizens, the focaf governing hoffies art6 agencies of governrnent at other [eve[s, an6
'WftBreas, ?rofessionaf ivhmiciyaf C[erLs have y[e[ge{to 6e ever min[fut of tfreir neutraftty andimyartiaftty, renfering equafservice to aff' 'Wfureas, r'he
"rofessionaf
Svlurticiyaf C[erF" serves as tfre information center on furtctions of fo caf g ov ennnerLt artf community.
^Wfi.ereas, ?rofessionaf Svttmiciyaf CferLs continuaffy strive to imlrrove the administration of tfre affairs of tfre Office of the ?rofessionaf Svltmiciyaf C[erF. througftyarticiyation in effircationyrogrilns, seminars, worZ.shoys an{the arutua( me eting s of t heir s t at e, yr ov inciaC c ourtty and int ernat ionaf yr ofe s siona I organizations.
^WfiBreas, It is most ayyroyriate that we recognize the accomyf|shtnents of the Office of the ?rofessionaf Svluniciyaf Cferfr..
!,fottt, Tfierefore, I, freffiry Taffez, Jvtayor of the City of firebaugft, do recognize tfre weeE of frtay g tfrrough g, 2026, as ?rofessionaf Jvlurticiyaf C[erC.s'WeeE, andfurther exten[ ayyreciation to our ?rofessionaf Svtuniciyaf C[erE, kita -tozarto andto attnrofessionaf tulurticiyaf Cferks for the vitaf services tfrey yerform artf their exemyfary {effication to tfre corvwrwnities they relrresent.

Date{this 4'n fay of tuIay, zoz6
freddy Taffez, Svlayor
City of Tirebaugh
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ORDINANCE NO. 26-OI

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FIREBAUGH AMENDING CHAPTER 8 OF' THE FIREBAUGH MUNICIPAL CODE RELATING TO

THE BUILDING AND HOUSING CODES
The City Council of the City of Firebaugh does ordain as follows:

Section L: That Chapter 8, Building and Housing of the City of Firebaugh Municipal Code, be amended as stated in Attachment "A", attached hereto and made apart hereof by this reference.

Section 2: Necessifv: The amendment is reasonably necessary because of the following local climatic, geological, or topographical conditions: the City of Firebaugh is within a seismic atea, local soil conditions can be expansive, the City of Firebaugh can have hard water, which is corrosive to ferrous and non-ferrous metals;
Section 3: Purpose and Authoritv: The purpose of this Ordinance is to adopt by reference the i\ZS
"dition
of the California Building Standards Code, Title 24, Parts 1, 2,2.5,3, 4, 5, 6,7, 8,9, 10, 1 1, & 12 of the California Code of Regulations, subject to the definitions, clarifications, and the amendments set forth in this Ordinance. The purpose of this Ordinance is also to provide minimum requirements and standards for the protection of the public safety, health, property, and welfare of the City of Firebaugh. This Ordinance is adopted under the authority of Government Code Subsection 50022.2 and Health and Safety Code Section 18941.5.

Section 4: Effective Date and Publication
This Ordinance shall take effect on January l, 2026, after its adoption, published in summary format prior to adoption and within fifteen (15) days after its adoption in a newspaper of general circulation published and circulated in the City of Firebaugh.

The foregoing ordinance was introduced by the City Council of the City of Firebaugh, California, at a regularmeeting held on this 20tr'day of April, 2026,and was passed and adopted bythe City Council on this 4th day of May,2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED: ATTEST:

Freddy Yaldez, Mayor Rita Lozano, Deputy City Clerk
Return to agenda
AA
City of Firebaugh, CA

ATTACHMENT (A''
Chapter 8

BUILDING AND HOUSING
$ 8-I.BUILDrNG CODE.
g S-1.1. Adoption by Reference of the California Buitding Code. [Ord. #94'3, 51; Ord. #07-08' S1; Ord. #12-05,51; amended 6-15-2020 by Ord. No. 20-03; 12-5-2022 by Ord. No. 22-041 Pursuant to the provisions of Section 50022.2 of the Government Code of the State of California, the City Council of the City of Firebaugh does hereby adopt by specific reference thereto and incorporation herein by said reference, the provisions, rules, and regulations specified and set forth in the Califomia Building Code M 2025 Edition, Volumes 1 and 2 (Part2 of Title 24 of the California Code of Regulations), based on the W+ 2lz{International Building Code as published by the Intemational Code Council, together with Anpendices Chapter F - Rodentproofins.

ChapterG-Flood-ResistantConstruction,ChapterH-Signs,ChapterI-PatioCovers,ChapterJGrading,amdChapterK-CentralValleyFloodProtectionPlan,and@ing, Chapter N - Renlicable Buildinqs. Chapter O - Performance-Based Application. Chapter P -
Sleepine Lofts and Chapter O - Emersencv Housins and subsequent additions and editions ttr.""to, as adopted by the California Building Standards Commission, and said code is hereby adopted by the Council as the Building Code of the City of Firebaugh, for all intents and purposes and to the same effect as if each and every section, paragraph, subparagraph, word, phrase or clause contained therein were fully set forth herein. Any changes made to the Building Code by the California Building Standards Commission applicable to the City of Firebaugh, including new editions, shall be deemed automatically incorporated herein without further action by the City Council. If any section, subsection, sentence, clause, or phrase of the said Building Code is, for any reason, held to be unconstitutional by court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of said code. The City Council hereby declares it would have passed each section, clause, or phrase thereof, irrespective of the fact that any one or more sections, iubsections, sentences, clauses and phrases be declared unconstitutional, except as said code is specifically changed in this Section 8-1. The said Building Code shall be designated as Section 8-1 of Chapter 8 of the Firebaugh City Code.
s s-1.2. copies on File. [ord. #94-3, 5L; amendedl2-5-2022by Ord. No. 22-041 One copy of said California Building Code has been deposited and is on file in the office of the city clerk for use and examination by the public.
$ 8-2.ELECTRTCAL CODE.
g S-2.1. Adoption by Reference of the California Electrical Code. [Ord. #01-01' 51; Ord. #07- 08, 52; Ord. #12-05, 52; amended 6-15-2020 by Ord. No.20-03; 12-5-2022 by Ord. No.22-041 Pursuant to the provisions of Section 50022.2 of the Government Code of the State of California, the City Council of the City of Firebaugh does hereby adopt by specific reference thereto and incorporation herein by said reference, the provisions, rules, and regulations specified and set forth in the Califomia Electrical Code, M.22025 Edition (Part 3 of Title 24 of the California Code of Regulations), based on the M 2023 National Electrical Code as published by the National Fire Downloaded from https://ecode360.com,/F14072 on 2025 -09 -19 AA
City of Firebaugh, CA
Protection Association, together with its Appendices, and subsequent additions and editions thereto, as adopted by the California Building Standards Commission, and said code is hereby adopted by the Council as the Electrical Code of the City of Firebaugh, for all intents and purposes and to the same effect as if each and every section, parugraph, subparagraph, word, phrase or clause contained therein were fully set forth herein. Any changes made to the Electrical Code by the California Building Standards Commission applicable to the City of Firebaugh, including new editions, shall be deemed automatically incorporated herein without further action by the City Council. If any section, subsection, sentence, clause, or phrase of said Electrical Code is, for any reason, held to be unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of said code. The City Council hereby declares it would have passed each section, clause, or phrase thereof, irrespective of the factthatany one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional, except as said code is specifically changed in this Section 8-2. The Electrical Code shall be designated as Section 8-2 of Chapter 8 of the Firebaugh City Code.
$ 8-2.2. Copies on File. [Ord. #01-01, sL; amendedl2-5-2022by Ord. No.22-041 One copy of said California Electrical Code has been deposited and is on file in the offtce of the city clerk for use and examination by the public.
$ 8-3.MECHANICAL CODE.
$ S-3.1. Adoption by Reference of the California Mechanical Code. [Ord. #94'3, 52; Ord. #07- 08, 53; Ord. #12-05, 53; amended 6-15-2020 by Ord. No.20-03; 12-5-2022 by Ord. No.22-041 Pursuant to the provisions of Section 50022.2 of the Govemment Code of the State of California, the City Council of the City of Firebaugh does hereby adopt by specific reference thereto and incorporation herein by said reference, the provisions, rules, and regulations specified and set forth in the California Mechanical Code, WZ 2025 Edition (Part 4 of Title 24 of the California Code of Regulations), including appendix, based on the *2+2024 Uniform Mechanical Code as published by the Intemational Association of Plumbing and Mechanical Officials and subsequent additions and editions thereto, as adopted by the Califomia Building Standards Commission, and said code is hereby adopted by the Council as the Mechanical Code of the City of Firebaugh, for all intents and purposes and to the same effect as if each and every section, paragraph, subparagraph, word, phrase or clause contained therein were fully set forth herein. Any changes made to the Mechanical Code by the California Building Standards Commission applicable to the City of Firebaugh, including new editions, shall be deemed automatically incorporated herein without further action by the City Council. If any section, subsection, sentence, clause, or phrase of said Mechanical Code is, for any reason, held to be unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of said code. The City Council hereby declares it would have passed each section, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional, except as said code is specifically changed in this Section 8-3. The said Mechanical Code shall be designated as Section 8- 3 of Chapter 8 of the Firebaugh City Code.
$ 8-3.2. Copies on File. [Ord. #94-3, 52; amended 12-5'2022by Ord. No. 22-04] One copy of said California Mechanical Code has been deposited and is on file in the office of the city clerk for use and examination by the public.

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$ 8-16.1
$ 8-4
$ 8-4.PLUMBING CODE.
$ 8-r6.2
$ 8-7.1
$ S-4.1. Adoption by Reference of the California Plumbing Code. [Ord. #94-3, 53; Ord. #07- 08, 34; Ord. #12-05, 54; amended 6-15-2020 by Ord. No.20-03; 12-5-2022 by Ord. No.22-041 Pursuant to the provisions of Section 50022.2 of the Government Code of the State of California, the City Council of the City of Firebaugh does hereby adopt by specific reference thereto and incorporation herein by said reference, the provisions, rules, and regulations specified and set forth in the California Plumbing Code, ?49F-2025 Edition (Part 5 of Title 24 of the Califomia Code of Regulations), including appendix, based on the ry+2024 Uniform Plumbing Code as published by the Intemational Association of Plumbing and Mechanical Officials and subsequent additions and editions thereto, as adopted by the California Building Standards Commission, and said code is hereby adopted by the Council as the Plumbing Code of the City of Firebaugh, for all intents and pu{poses and to the same effect as if each and every section, paragraph, subparagraph, word, phrase or clause contained therein were fully set forth herein. Any changes made to the Plumbing Code by the California Building Standards Commission applicable to the City of Firebaugh, including new editions, shall be deemed automatically incorporated herein without further action by the City Council. If any section, subsection, sentence, clause, or phrase of said Plumbing Code is, for any reason, held to be unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of said code. The City Council hereby declares it would have passed each section, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional, except as said code is specifically changed in this Section 8-4. The said Plumbing Code shall be designated as Section 8-4 of Chapter 8 of the Firebaugh CityCode.
$ S-4.2. Copies on File. [Ord. #94-3,53; amendedl2'5'2022by Ord. No.22'041 One copy of said California Plumbing Code has been deposited and is on file in the office of the city clerk for use and examination by the public.
$ 8-s.(RSSERySD) WILDLAND-URBAN INTERFACE CODE
Editor's Note: The Uniform Sign Code was repealed l2-5-2022by Ord. No. 22-04. History includes Ord. #94-3, S4.l
S 8-5.1. Adoption bv Reference of the California Wildland-Urban Interface Code.

Pursuant to the provisions of Section 50022.2 of the Government Code of the State of California. the Citv Council of the City of Firebaueh does hereby adopt bv specific reference thereto and incorporation herein bv said reference. the provisions. rulep" and regulations specified and set forth in the California Wildland-Urban Interface Code.2025 Edition. (Part 7 of Title 24 of the California Code of Resulations). based on the 2024 ational WildlandUrban Interface Code as published bv the International Code Council. together with Appendices Chapters and subsequent additions and editions thereto. adopted bv the California Buildins Standards Commission. and said code is hereby adopted bv the Council as the Wildland-Ilrban In ce Code of fhe Cifv of X'irebaush. for all intenfs and nrrrnoses and to the same effect as if each and every section. paragraph. subparagraph. word" phrase or clause Downloaded from https://ecode360.com/F14072 on 2025-09-19 City of Firebaugh, CA
$ 8-r6.1 $ 8-16.2
contained therein firllv sef forfh herein. Anv chanses made fhe Wildland-Ilrban Interface Code bv the California Buildine Standards Commission applicable to the Citv of Firebaush. includinq new editions. shall be deemed automaticallv incorporated herein without further action bv the City Council.If any section" subsection. sentence. clause. or phrase of the said Wildland-Urban Interface Code is. for any reason" held to be unconstitutional bv a court of competent iurisdiction. such holdine shall not affect the validitv of the remaining portions of said code. The Citv Council herebv declares it would have passed each section. clause. or phrase thereof. irrespective of the fact that anv one or more sections. subsections. sentences. clauses and phrases be declared unconstitutional. except as said code is specificallv changed in this Section 8-11. The said Wildland-Urban Interface Code shall be desisnated as Section 8-5 of Chapter 8 of the Firebaueh Citv Code.

I 8-5.2. Copies on File.

One copv of said California Wildland-Urban Interface Code has been deposited and is on file in the office of the citv clerk for use and examination bv the public. $ 8-6.(RESERVED)
Editor's Note: The Uniform Code Solar Energy Installations was repealed 12-5-2022 by Ord. No. 22-04. History includes Ord. #94-3, 55.l
s 8-7.FrRE CODE.

S S-7.1. Adoption by Reference of the California Fire Code. [Ord. #94-3, 56; Ord. #07-08' 55; Ord. #12-05, 55; amended 6-15-2020 by Ord. No.20-03; 12-5-2022 by Ord. No.22-041 Pursuant to the provisions of Section 50022.2 of the Government Code of the State of Califomia, the City Council of the City of Firebaugh does hereby adopt by specific reference thereto and incorporation herein by said reference, the provisions, rules, and regulations specified and set forth in the Califomia Fire Code, ?4E'22025 Edition, (Part 9 of Title 24 of the California Code of Regulations), based on the ?49'I2024International Building Code as published by the International Code Council, together with Appendices Chapters and subsequent additions and editions thereto, as adopted by the California Building Standards Commission, and said code is hereby adopted by the Council as the Fire Code of the City of Firebaugh, for all intents and purposes and to the same effect as if each and every section, paragraph, subparagraph, wotd, phrase or clause contained therein were fully set forth herein. Any changes made to the Fire Code by the California Building Standards Commission applicable to the City of Firebaugh, including new editions, shall be deemed automatically incorporated herein without further action by the City Council. If any section, subsection, sentence, clause, or phrase of the said Fire Code is, for any reason, held to be unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of said code. The City Council hereby declares it would have passed each section, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional, except as said code is specifically changed in this Section 8-7. The said Fire Code shall be designated as Section 8-7 of Chapter 8 of the Firebaugh City Code.

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$ 8-16.1 $ 8-16.2
$ s-7.2. Copies on File. [ord. #94-3, s6; amendedl2-5-2022by Ord. No.22-041 One copy of said California Fire Code has been deposited and is on file in the office of the city clerk for use and examination by the public.
$ S-8. WAIVER OF PERMIT FEES. [Ord. #99-02, 51; Ord. #01-07, S1; amended12-5-2022 by Ord. No.22-041
Upon request by the applicant, the council, in its discretion, may waive in whole or part the fees that would otherwise be collected from the applicant for issuance of a permit under any code specified in this Chapter 8, provided the council makes all of the following findings by resolution:
a. The applicant is a not-for-profit organization qualified for tax-exempt status under Federal and State law; and
b. The applicant will use the subject building, structure or facility solely to provide services or products that will be of exceptional and significant direct benefit to the health, welfare andl or safety of the city's residents, plus related incidental uses; and c. Payment of the permit fees would substantially impair the applicant in providing such services or products or would otherwise impose an undue financial hardship on the applicant.

A waiver of permit fees under this section shalt apply only to the specified permit and shall not be deemed awaiver of fees for any otherpermit fees or for any other applicant. Waiver of permit fees shall not waive the requirement for actual issuance of the permit or compliance with any terms of the permit.
$ S-9. BUILDING PERMIT FEES. [Ord. #12-05,56; amended 6-15-20 20byOrd. No.20-03; 12-5-2022 by Ord. No.22-041
Building permit fees may be established and modified from time to time by resolution of the city council.
$ 8-10. ADMINISTRATTVE CODE.

S 8-10.1. Adoption by Reference of the California Administrative Code. [Added 12'5-2022by Ord. No. 22-041
Pursuant to the provisions of Section 50022.2 of the Government Code of the State of California, the City Council of the City of Firebaugh does hereby adopt by specific reference thereto and incorporation herein by said reference, the provisions, rules, and regulations specified and set forth in the California Administrative Code, ?4922025 Edition, (Part 1 of Title 24 of the California Code of Regulations), as published by the International Code Council, together with Appendices Chapters and subsequent additions and editions thereto, as adopted by the California Building Standards Commission, and said code is hereby adopted by the Council as the Administrative Code of the City of Firebaugh, for all intents and purposes and to the same effect as if each and every section, paragraph, subparagraph, word, phrase or clause contained therein were fully set forth herein. Any changes made to the Administrative Code by the California Building Standards Commission applicable to the City of Firebaugh, including new editions, shall be deemed automatically incorporated herein without further action by the City Council. If any section, subsection, sentence, clause, or phrase of the said Administrative Code is, for any reason, held to be unconstitutional by a Downloaded from https://ecode360.com/F14072 on 2025 -09-19 City of Firebaugh, CA
$ s-16.1 $ 8-16-2
court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of said code. The City Council hereby declares it would have passed each section, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional, except as said code is specifically changed in this Section 8-10.

The said Administrative Code shall be designated as Section 8-10 of Chapter 8 of the Firebaugh City Code.

S 3-10.2. Copies on File. [Added 12-5-2022 by Ord. No.22-04] One copy of said California Administrative Code has been deposited and is on file in the office of the city clerk for use and examination by the public.
$ 8-11. RESIDENTTAL CODE.

S 3-11.1. Adoption by Reference of the California Residential Code. [Added 12'5'2022 by Ord.

No.22-041
Pursuant to the provisions of Section 50022.2 of the Govemment Code of the State of California, the City Council of the City of Firebaugh does hereby adopt by specific reference thereto and incorporation herein by said reference, the provisions, rules, and regulations specified and set forth intheCaliforniaResidentialCode, W?2025Edition, (Part2.5 ofTitle 24ofthe CaliforniaCodeof Regulations), based on the *2+ 2024 International Residential Code as published by the International Code Council, together with Appendices Chapters and subsequent additions and editions thereto, with the exception of Appendix ALAB-Permit Fees, as adopted by the California Building Standards Commission, and said code is hereby adopted by the Council as the Residential Code of the City of Firebaugh, for all intents and purposes and to the same effect as if each and every section, paragraph, subparagraph, word, phrase or clause contained therein were fully set forth herein.

Any changes made to the Residential Code by the California Building Standards Commission applicable to the City of Firebaugh, including new editions, shall be deemed automatically incorporated herein without further action by the City Council. If any section, subsection, sentense, clause, or phrase of the said Residential Code is, for any reason, held to be unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of said code. The City Council hereby declares it would have passed each section, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional, except as said code is specifically changed in this Section 8-1 1.

The said Residential Code shall be designated as Section 8-1 1 of Chapter 8 of the Firebaugh City Code.
$ 8-f 1.2. Copies on File. [Added 12-5-2022 by Ord. No.22-04] One copy of said California Residential Code has been deposited and is on file in the office of the city clerk for use and examination by the public.
$ 8-12. ENERGY CODE.
$ 3-12.1. Adoption by Reference of the California Energy Code. [Added 12-5-2022 by Ord. No. 22-041
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$ 8-16.r $ 8-16-2
Pursuant to the provisions of Section 50022.2 of the Government Code of the State of California, the City Council of the City of Firebaugh does hereby adopt by specific reference thereto and incorporation herein by said reference, the provisions, rules, and regulations specified and set forth in the California Energy Code, ?49+22025 Edition, (Part 6 of Title 24 of the California Code of Regulations), as published by the International Code Council, together with Appendices Chapters and subsequent additions and editions thereto, as adopted by the California Building Standards Commission, and said code is hereby adopted by the Council as the Energy Code of the City of Firebaugh, for all intents and purposes and to the same effect as if each and every section, paragtaph, subparagraph, word, phrase or clause contained therein were fully set forth herein. Any changes made to the Energy Code by the California Building Standards Commission applicable to the City of Firebaugh, including new editions, shall be deemed automatically incorporated herein without further action by the City Council. If any section, subsection, sentence, clause, or phrase of the said Energy Code is, for any reason, held to be unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of said code. The City Council hereby declares it would have passed each section, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional, except as said code is specifically changed in this Section 8-12. The said Energy Code shall be designated as Section 8-12 of Chapter 8 of the Firebaugh CityCode.
$ 3-12.2. Copies on File. [Added 12-5-2022 by Ord. No. 22-04] One copy of said California Energy Code has been deposited and is on file in the office of the city clerk for use and examination by the public.
s 8-13. HTSTORTCAL CODE.

S 3-13.1. Adoption by Reference of the California Historical Code. [Added 12-5-2022 by Ord. No. 22-041
Pursuant to the provisions of Section 50022.2 of the Government Code of the State of Califomia, the City Council of the City of Firebaugh does hereby adopt by specific reference thereto and incorporation herein by said reference, the provisions, rules, and regulations specified and set forth in the California Historical Code, ?fPF-2025 Edition, (Part 8 of Title 24 ofthe California Code of Regulations), as published by the Intemational Code Council, together with Appendices Chapters and subsequent additions and editions thereto, as adopted by the California Building Standards Commission, and said code is hereby adopted by the Council as the Historical Code of the City of Firebaugh, for all intents and purposes and to the same effect as if each and every section, paragraph, subparagraph, word, phrase or clause contained therein were fully set forth herein. Any changes made to the Historical Code by the California Building Standards Commission applicable to the City of Firebaugh, including new editions, shall be deemed automatically incorporated herein without further action by the City Council. If any section, subsection, sentence, clause, or phrase of the said Historical Code is, for any reason, held to be unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of said code. The City Council hereby declares it would have passed each section, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional, except as said code is specifically changed in this Section 8-13. The said Historical Code shall be designated as Section 8-13 of Chapter 8 of the Firebaugh City Code.

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$ 8-16.1
S 8-13.2. Copies on File. [Added 12-5-2022 by Ord. No.22-04] $ 8-16.2
One copy of said California Historical Code has been deposited and is on file in the office of the city clerk for use and examination by the public.
$ 8-14. REFERENCED CODE.
$ 8-14.1. Adoption by Reference of the California Referenced Code. [Added 12'5-2022 by Ord.

No.22-041
Pursuant to the provisions of Section 50022.2 of the Government Code of the State of California, the City Council of the City of Firebaugh does hereby adopt by specific reference thereto and incorporation herein by said reference, the provisions, rules, and regulations specified and set forth in the California Referenced Code, ryZ 2025 Edition, (Part 12 of Title 24 of the California Code of Regulations), as published by the International Code Council, together with Appendices Chapters and subsequent additions and editions thereto, as adopted by the California Building Standards Commission, and said code is hereby adopted by the Council as the Referenced Code of the City of Firebaugh, for all intents and purposes and to the same effect as if each and every section, paragraph, subparagraph, word, phrase or clause contained therein were fully set forth herein. Any changes made to the Referenced Code by the California Building Standards Commission applicable to the City of Firebaugh, including new editions, shall be deemed automatically incorporated herein without further action by the City Council. If any section, subsection, sentence, clause, or phrase of the said Referenced Code is, for any reason, held to be unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of said code. The City Council hereby declares it would have passed each section, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional, except as said code is specifically changed inthis Section 8-14. The said Referenced Code shall be designated as Section 8-14 of Chapter 8 of the Firebaugh City Code. $ 8-14.2. Copies on File. [Added 12-5-2022 by Ord. No.22-04] One copy of said California Referenced Code has been deposited and is on file in the office of the city clerk for use and examination by the public.
$ 8-15. EXTSTING BUILDING CODE.

S 3-15.1. Adoption by Reference of the California Existing Building Code. [Added 12'5'2022 by Ord. No.22-041
Pursuant to the provisions of Section 50022.2 of the Government Code of the State of California, the City Council of the City of Firebaugh does hereby adopt by specific reference thereto and incorporation herein by said reference, the provisions, rules, and regulations specified and set forth in the California Existing Building Code, WZ 2025 Edition, (Part 10 of Title 24 of the Califomia Code of Regulations), based on the 2021 Intemational Existing Building Code as published by the International Code Council, together with Appendices Chapters and subsequent additions and editions thereto, as adopted by the California Building Standards Commission, and said code is hereby adopted by the Council as the Existing Building Code of the City of Firebaugh, for all intents and purposes and to the same effect as if each and every section, paragraph, subparagraph, word, phrase or clause contained therein were fully set forth herein. Any changes made to the Existing Downloaded from https://ecode360.com/FI40'12 on 2025-09 -19 City of Firebaugh, CA
$ 8-16.1 $ 8-16.2
Building Code by the Califomia Building Standards Commission applicable to the City of Firebaugh, including new editions, shall be deemed automatically incorporated herein without further action by the City Council. If any section, subsection, sentence, clause orphrase of the saidExistingBuilding Code is, for any reason, held to be unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of said code. The City Council hereby declares it would have passed each section, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional, except as said code is specifically changed in this Section 8-15. The said Existing Building Code shall be designated as Section 8-15 of Chapter 8 of the Firebaugh City Code. $ 3-15.2. Copies on File. [Added 12-5-2022 by Ord. No.22-04] One copy of said California Existing Building Code has been deposited and is on file in the office of the city clerk for use and examination by the public.
$ 8-16. GREEN CODE.
$ 3-16.1. Adoption by Reference of the California Green Code. [Added 12-5-2022 by Ord. No. 22-041
Pursuant to the provisions of Section 50022.2 of the Government Code of the State of California, the City Council of the City of Firebaugh does hereby adopt by specific reference thereto and in corporation herein by said reference, the provisions, rules, and regulations specified and set forth in the California Green Code, 2-{9'22025 Edition, (Part 11 of Title 24 of the California Code of Regulations), as published by the Intemational Code Council, together with Appendices Chapters and subsequent additions and editions thereto, as adopted by the Califomia Building Standards Commission, and said code is hereby adopted by the Council as the Green Code of the City of Firebaugh, for all intents and purposes and to the same effect as if each and every section, paragraph, subparagraph, word, phrase or clause contained therein were fully set forth herein. Any changes made to the Green Code by the California Building Standards Commission applicable to the City of Firebaugh, including new editions, shall be deemed automatically incorporated herein without further action by the City Council. If any section, subsection, sentence, clause or phrase of the said Green Code is, for any reason, held to be unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of said code. The City Council hereby declares it would have passed each section, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional, except as said code is specifically changed in this Section 8-16. The said Green Code shall be designated as Section 8-16 of Chapter 8 of the Firebaugh CityCode.
$ 3-16.2. Copies on File. [Added 12-5-2022 by Ord. No.22-04] One copy of said California Green Code has been deposited and is on file in the office of the city clerk for use and examination by the public.

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FROM:

DATE:

SUBJECT:

Honorable Freddy Yaldez and Council Members
Mario Gouveia, City Engineer
May 4,2026
Resolution No. 26-24 Resolution of the City Council of the City of Firebaugh of Intent to Levy and Collect the Annual Assessments for Assessment District No. 1 and Setting a Public Hearing Pursuant to the Landscaping and Lighting ActOf 1972
R"ECOMMENDATION:
l. Council by motion adopt Resolution No. 26-24 declaring the City's intention to levy and collect the Annual Assessments for Assessment District No. l.

2. Set a date, time and place to hold a public hearing to hear public testimony regarding the assessments BACKGROUND:

Each year, the City levies annual assessments within its Landscaping, Lighting and Maintenance District (LLMD) for the purpose of collecting assessments to defray the cost of maintain the street lighting, public landscaping, and parks within designated areas in the City of Firebaugh.

The Engineer's Repoft, Resolution of Intention, and public hearing are requirements set forth in Division 15, part2, of the Streets and Highways Code of the State of California.

DISCUSSION:

The yearly assessments established for all properties within the District cover the City's cost for maintenance, related services, and incidental expenses. The assessments for District No. I (excluding Tract 5529, 6257, 6313, 6314, & 6252) are unchanged from last year; this assessment district was created utilizing a fixed assessment of $35.00 per residential unit (RU). The total calculated amount to be assessed for District No. I (excluding Tract 5529, 6257,631,3,6314, & 6252) for Fiscal Year 2026-2027 is 511,296.00 based on $35.00 multiplied by 494.17 RU (total assessable units).

The assessments for Tract 5529 are subject to an annual adjustment tied to the Consumer Price Index.

The maximum allowable assessment increase is equal to the change in CPI and shall not exceed 3.0%. Since the change in the CPI was 2.7o/o, the increase in assessment is limited to 2.7Yo. In accordance with the foregoing limitations, the assessment for 2026-2027 will be $132.00 per RU. The total calculated amount for Tract 5529 to be assessed for Fiscal Y ear 2026-2027 is $24,552.00 divided by I 86 RU.

The assessments for Tract 6257,6313, & 6314 are subject to an annual adjustment tied to the Consumer Price Index.

The maximum allowable assessment increase is equal to the change in CPI and shall not exceed 3.0%. Since the change in the CPI was 2.lYo, the increase in assessment is limited to 2.7%o.In accordance with the foregoing limitations, the assessment for 2026-2027 will be $94.06 per RU. The total calculated amount for Tract 6257, 6313, &. 6314 to be assessed for Fiscal Year 2026-2027 is $12,321.86 divided by 131 RU.

Return to agenda
The assessments for Tract 6252, and Outlot "A" (Del Rio Place Apartments), are subject to an annual adjustment tied to the Consumer Price Index.

The maximum allowable assessment increase is equal to the change in CPI and shall not exceed 3.0%. Since the change in the CPI was2.7o/o, the increase in assessment is limited to2.7Yo. In accordance with the foregoing limitations, the assessment for 2026-2027 will be $i62.10 per RU. The total calculated amount forTract6252, and Outlot "A" (Del Rio Place Apartments) to be assessed for Fiscal Year 2026-2027 is 514,42690 divided by 89 RU.

Two meetings are required to complete the annual assessment process. As required by the Landscaping and Lighting Act of 1972, the preliminary Engineer's Report for Assessment District No. I is on file with the City Clerk and is available for public review. At this regular meeting on May 4,2026, the City Council will review the draft annual Engineer's Report detailing the assessments, and consider the attached resolution declaring the City's intention to levy and collect the annual assessments. The attached resolution sets a public hearing on the proposed levy for June 1, 2026 atwhich time any interested person has the right to be heard either orally or in writing before the completion of the hearing. The public hearing will serve as the second required meeting, and staff will seek Council's formal adoption of the annual Engineer's Report at that time.

FISCAL IMPACT:

It is anticipated the City will collect approximately $68,596.76 from the City of Firebaugh Landscaping and Lighting Maintenance District No. 1 and Tract 5529, 6257, 6373, & 6314, Tract 6252, and Outlot "A" (Del Rio Place Apartments) Assessments to cover estimated maintenance, utility and administration expenses for Fiscal Year 2026-2027.

ATTACHMENTS:

Resolution No.26-24
Engineer's Report May 2026
RESOLUTION NO. 26-24

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FIREBAUGH OF INTENT TO LEVY AND COLLECT THE ANNUAL ASSESSMENTS FOR ASSESSMENT DISTRICT NO. 1 AND SETTING A

PUBLIC HEARING
(Pursuant to the Landscaping and Lighting Act of 1972)
WHEREAS' the City Council initiated proceedings to levy annual assessments for Assessment District No. 92-3 and directed the City Engineer to prepare and file his report with the City Council as required by Streets and Highways Code Section22565 et. seq.; and
WHEREAS, the City Engineer filed his report with the City Clerk as directed.

NOW THEREFORE, the City Council of the City of Firebaugh, County of Fresno, Califomia, resolves as follows:

1. It is intention of said Council to order the levy and collection of an assessment under the Landscaping and Lighting Act of l972,Part 2 of Division 15 of the Streets and Highways code (beginning with Section 22500 of said Code and herein after referred to as the 'oAct") for Assessment District No. 1 of the City of Firebaugh (herein "District") for fiscal year 2026-2027.

2. The Engineer has prepared and filed with the Deputy City Clerk of the City of Firebaugh a preliminary report labeled Engineer's Report of the City of Firebaugh No. 1, dated May 2026,which reference is hereby made for a detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The Engineer's Report is hereby approved as submitted.

3. The Firebaugh-Mendota Journal, a locally published newspaper and circulated in the City of Firebaugh is hereby designated as the newspaper in which this Resolution of Intention shall be published, and the Deputy City Clerk of the City of Firebaugh is hereby directed to cause this Resolution of Intention to be published once. Publication shall be completed not less than ten (10) days before the date set for the hearing.

4. NOTICE IS HEREBY GMN that the lst day of June, 2026, at the hour of 6:00 p.m., in the regular meeting place of the Council of the City of Firebaugh, Andrew Firebaugh Community Center, 1655 13th Street, Firebaugh, Califomia 93622 is hereby fixed as the time and place for a public hearing when and where all interested persons shall be heard on the question of the levy and collection of the proposed assessments. Written protests may be filed with the Deputy City Clerk at any time prior to the conclusion of the hearings. A written protest shall state all grounds of objection and shall contain a description sufficient to identiff the properly owned by the protesting person or persons.

The foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Firebaugh held on the 4th day of May 2026,by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ATTEST:

Freddy Yaldez, Mayor Rita Lozano, Deputy City Clerk
Page I of2
ATTEST:

I, hereby certify that the forgoing resolution was regularly introduced, passed and adopted at a regular meeting ofthe City Council ofthe City ofFirebaugh this 4th day of May 2026.

Rita Lozano, Deputy City Clerk of the City of Firebaugh

Page 2 of 2 ends

CITY OF FIREBAUGH

FRESNO COUNTY, CALIFORNIA

LANDSCAPING AND LIGHTING MAINTENANGE
DISTRICT NO. 1

ENGINEER'S REPORT
2026-2027
MAY 2026
r-.-t\llll
fifr..D

GOUVEIA ENGINEERING

ENGINEER'S REPORT
LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 1
(Pursuant to the Landscaping and Lighting Act of 1972)
The undersigned respectfully submits the enclosed report as directed by the City Council.

Dated: May 4,2026
Mario B. P.E., Engineer of Work
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment and Assessment and Boundary Diagrams thereto attached was filed with me on the 4th day of May, 2026.

Ben Gallegos, City Manager, City of
Firebaugh, Fresno County, California
Ben Gallegos
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment and Assessment and Boundary Diagrams thereto attached was approved and confirmed by the City Council of the City of Firebaugh, California, on the 1st day of June, 2026.

Ben Gallegos, City Manager, City of
Firebaugh, Fresno County, California
By
Ben Gallegos
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment and Assessment and Boundary Diagrams thereto attached was filed with the County Auditor of the County of Fresno pursuant to Section 22641 of the Streets and Highways Code.

Ben Gallegos, City Manager, City of
Firebaugh, Fresno County, California
790.02 - 2026 E.R. - 1
Ben Gallegos

ENGINEER'S REPORT
LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 1
(Pursuant to the Landscaping and Lighting Act of 1972)
The undersigned, Engineer of Work for the Assessment District, City of Firebaugh, Fresno County, California, makes this report, as directed by the City Council, pursuant to Section 22585 of the Streets and Highways Code (Landscaping and Lighting Act of 1972).

The improvements which are the subject of this report are briefly described as follows:

1. Storm Drainage Facilities

2. Landscape Maintenance

3. Lighting

4. Flood Control Levee
This report consists of six parts as follows:

PART A. Plans and Specifications and description of district formation.

PART B. An estimate of the cost of the improvements.

PART C. An assessment of the estimated cost of the improvements on each benefited parcel of land within the assessment district.

PART D.

PART E.

PART F.

A statement of the method by which the undersigned has determined the amount proposed to be assessed against each parcel.

A list of the names and addresses of the owners of real property within this assessment district, as shown on the last equalized assessment roll for taxes, or as known to the Clerk.

The list is keyed to Exhibit C by assessment number.

Assessment and boundary diagrams showing all of the parcels of real property within this assessment district and the description of the Landscaping and Lighting Maintenance District No. 1 boundary. The Assessment Diagram is keyed to Part C by assessment number.

Respectfully submitted,
B.G
clv
No- 55261
FtP- 6-34-27
790.02 - 2026 E.R. - 2
Engineer of Work
PART A

PLANS AND SPECIFICATIONS AND DISTRICT BOUNDARY
LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 1
(Pursuant to the Landscaping and Lighting Act of 1972)

PLANS AND SPECIFICATIONS
The plans and specifications for the street landscaping and lighting and storm drainage improvements to be maintained are on file at the Public Works Department of the City of Firebaugh and are incorporated herein by reference.

DISTRICT FORMATION
WHEREAS, on October 1, 1990, the City Council of the City of Firebaugh directed inclusion of the storm drainage basin serving Tracts 4010 and 4060 in the landscaping and lighting maintenance district to provide funding to finance thaimprovement of said storm drainage basin and its maintenance; and WHEREAS, on December 5, 1991, the Planning Commission of the City of Firebaugh approved the Tentative Subdivision Map of Tract 4608, in the City of Firebaugh, County of Fresno, State of California, subject to the terms of the "Conditions of Approval," which provided for the annexation to the existing landscaping and lighting maintenance district to provide funds to the City for the maintenance of the public lighting within street rights-of-way and landscaping within a landscaping easement included as a part of said district; and
WHEREAS, on February 18, 1991, the City Council of the City of Firebaugh directed the inclusion of Hacienda Villa Apartments, for storm drainage purposes, in the landscaping and lighting maintenance district to provide funding to finance the improvement of said storm drainage basin and its maintenance; and
WHEREAS, on August 31, 1992, the City Council of the City of Firebaugh directed the inclusion of Tract No. 4459, Riverview Estates, for storm drainage purposes, in the landscaping and lighting district to provide funding to finance the improvement of said storm drainage basin and its maintenance; and WHEREAS, on August 2, 1993, the City Council of the City of Firebaugh directed the inclusion of Tract No. 4608, Riverview Eslates #2,for storm drainage purposes, in the landscaping and lighting district to provide funding to finance the improvement of said storm drainage basin and its maintenance; and WHEREAS, on December 20, 1999, the City Council of the City of Firebaugh directed the inclusion of Tract No. 4850, Circa Del Rio, for storm drainage purposes, in the landscaping and lighting district to provide funding to finance the maintenance of lighting and landscaping and the improvement of said storm drainage basin and its maintenance; and
WHEREAS, on March 19, 2001, the City Council of the City of Firebaugh ordered annexation and the inctusion of Phase lTract 4851, (Cerca Del Rio ll), forthe maintenance of the public lighting and other improvements within street rights-of-way and for storm drain purposes, in the landscaping and lighting district to provide funding to finance such improvements and their maintenance; and WHEREAS, on March 19,2001, the City Council of the City of Firebaugh ordered annexation and inclusion of Phases ll and lll of Tract 4851 (Cerca Del Rio ll), for the maintenance of the public lighting and other improvements within street rights-of-way and for storm drain purposes, in the landscaping and lighting district to provide funding for such improvements and their maintenance; and WHEREAS, on March 19,2001, the City Council of the City of Firebaugh ordered annexation and inclusion of Parcel "A" of Parcel Map 94-1, for maintenance of the public lighting and other improvements within the street rights-of-way and for storm drain purposes, in the landscaping and lighting district to provide funding for such improvements and their maintenance; and
790.02 - 2025 A-1
WHEREAS, on May 17 ,2004 the City Council of the City of Firebaugh ordered annexation and inclusion of Tracl5202 (Cerca Del Rio lll), for maintenance of the public lighting and other improvements within the street rights-of-way and for storm drain purposes, in the landscaping and lighting district to provide funding for such improvements and their maintenance; and
WHEREAS, on July 18, 2005, the City Councilof the City of Firebaugh ordered annexation and inclusion of Tract No. 5367, for maintenance of the public lighting and other improvements within the street rights-ofway and for offsite storm drain purposes, in the landscaping and lighting district to provide funding for such improvements and their maintenance; and
WHEREAS, on September 19, 2005, the City Council of the City of Firebaugh ordered annexation and inclusion of Tract 5529, for maintenance of the public lighting and other improvements within the street rights-of-way, for storm drain purposes and for the maintenance of the flood control levee and flood wall in the landscaping and lighting district to provide funding for such improvements and their maintenance; and WHEREAS, the annual cost to maintain the Flood Control Levee, Flood Control Wall and Drainage Basin appurtenant to Tract 5529 will increase, therefore, the annual assessments for the maintenance of the Flood Control Levee should be increased in an amount consistent with a national consumer index inflation rate.

WHEREAS, on December 07,2020, the City Council of the City of Firebaugh ordered annexation and inclusion of Tract No. 6257,6313, and 6314, for maintenance of the public lighting and other improvements within the street rights-of-way and for offsite storm drain purposes, in the landscaping and lighting district to provide funding for such improvements and their maintenance; and WHEREAS, on March 1,2021, the City Council of the City of Firebaugh ordered annexation and inclusion of Tract No. 6252, for maintenance of the public lighting and other improvements within the street rights-ofway and for otfsite storm drain purposes, in the landscaping and lighting district to provide funding for such improvements and their maintenance.
790.02 - 2025 A-2
PART B

ESTIMATE OF COST
LANDS.A'TNGANDfi [r..'9'fi J'^T^tt^fi'=Rl*"-DrsrRrcrNo

ENGINEER'S COST ESTIMATE
2026-2027
ESTTMATE OF ASSESSMENT DISTRICT IMPROVEMENT COSTS (excluding Tract 5529, 6257,6313, 6314, &6252)
The estimate of Assessment District improvement costs for fiscal year 2026-2027 is as follows:
1 2
3 MAINTENANCE COSTS (Drainage Basins)
MAINTENANCE COST (Landscaping Valle de Paz)
STREET IMPROVEMENTS (Lighting)
a. COSTS AND MAINTENANCE

INCIDENTAL COSTS
a. LEGAL FEES
b. ENGINEERING FEES
c. DISTRICT ADMINISTRATIVE COSTS
d. COUNTY PROCESSING FEE

TOTAL COSTS

TOTAL COST TO ASSESSMENT
MAINTENANCE COSTS (Drainage Basins)
MAINTENANCE COST (Flood Control Levee)
STREET IMPROVEMENTS (Lighting)
a. COSTS AND MAINTENANCE

INCIDENTAL COSTS
a. LEGAL FEES
b. ENGINEERING FEES
c. DISTRICT ADMINISTRATIVE COSTS
d. COUNTY PROCESSING FEE

RESERVE FUND

TOTAL COSTS

TOTAL COST TO ASSESSMENT
$ 3,450.00
$ 18,760.00
$ 19,500.00

57.50 2,000.00
150.00
43,917.50
17,296.00
$ 3,450.00
$ 18,760.00
$ 19,500.00

57.50 2,000.00
150.00
43,917.50
24,552.00
4 $
$
ESTIMATE OF ASSESSMENT DISTRICT IMPROVEMENT COSTS FOR TRACT 5529 (VAIIE dEI SOI) The estimate of Assessment District improvement costs for fiscal year 2026-2027 is as follows:
$
$
$
$
$
1 2.

3. 4.

5. $
$
$
$
790.02 - 2025 B -'r
ESTIMATE OF ASSESSMENT DISTRICT IMPROVEMENT COSTS FOR TRACT 6257,6313, & 6314 (Greystone Estates)
The estimate of Assessment District improvement costs for fiscal year 2026-2027 is as follows:

MAINTENANCE COSTS (Storm Drains)
MAINTENANCE COST (Landscape Maintenance)
a. ANNUAL LANDSCAPE MAINTENANCE & IMPROVEMENTS
b. GRAFITTIABATEMENT OF DECORATIVE WALL
STREET IMPROVEMENTS (Lighting)
a. COSTS AND MAINTENANCE

INCIDENTAL COSTS
a. LEGAL FEES
b. ENGINEERING FEES
c. COUNTY PROCESSING FEE
d. CIry OVERHEAD AND ADMINISTRATION

TOTAL COSTS

TOTAL COST TO ASSESSMENT
$ r,457.23
1,896.11

TOTAL COSTS

TOTAL COST TO ASSESSMENT

1. 2.

3. 4.
4,211.45
2,298.32

45.96 1,723.75
114.91
574.58
$ 12,322.31
$ 12,321.86
ESTIMATE OF ASSESSMENT DISTRICT IMPROVEMENT COSTS FOR TRACT 6252 (DEI RiO ESIAIES) The estimate of Assessment District improvement costs for fiscal year 2026-2027 is as follows:

1. MAINTENANCE COSTS (Storm Drains) $ 378.19

2. MAINTENANCE COST (Landscape Maintenance)
a. ANNUAL LANDSCAPE MAINTENANCE & IMPROVEMENTS 8'085.06 b. GRAFITTIABATEMENT OF DECORATIVE WALL 2,298.32

3. STREET IMPROVEMENTS (Lighting)
a. COSTS AND MAINTENANCE 1,206.62

4. INCIDENTAL COSTS
a. LEGAL FEES 45.96
b. ENGINEERING FEES 1,723.75
C. COUNTY PROCESSING FEE 114.91
d. CITY OVERHEAD AND ADMINISTRATION 574.58
$ 14,427.39
$ 14,426.90
790.02 - 2025 B-2
PART C

ASSESSMENT ROLL

CITY OF FIREBAUGH

FRESNO COUNTY, CALIFORNIA
LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 1

ASSESSMENT

DIAGRAM NUMBER
(TRACT NO.4010)
(F iscal Y ear 2026-2027 )

ASSESSOR'S TOTAL
CODE LOTNO. PARCEL NUMBER ASSESSMENT
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
1 2
3 4
5 6
7 8
o
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 65
66 67
68 69
70 71
72 73
74 75
76 77
78 79
80 81
82 83
84 24
23 22
21 20
19 18
17 16
15 14
13 12
11 10I
I
7 6
5 4
3 2
1 40
39 38
37 36
35 34
33 32
31 30
29 28
27 26
25 57
56 55
54 00726124
00726123
00726122
00726121
00726120
00726119
00726118
00726117
00726116
00726115
00726114
00726113
00726112
00726111
00726110
00726109
00726108
00726107
007261 06
00726105
00726104
00726103
00726102
00726101
00727101
00727102
00727103
00727104
00727105
00727106
00727107
00727108
00727109
00727110
00727111
00727112
00727113
00727114
00727115
00727116
00727208
00727209
00727210
00726214
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
790.02 - 2025 c-1

ASSESSMENT

DIAGRAM NUMBER
85 86
87 88
89 90
91 92
93 94
95 96
97 98
99 100
101
102
103
104
(TRACT NO.4060)
25 26
27 28
29 30
31 32
33 34
35 36
37 38
39 40
41 42
43 44
45 46
47 48
49 50
51 52
53 54
55 56
57 58
59 CODE LOTNO.
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
790.O2 - 2025
(F iscal Y ear 2026-2027 )

ASSESSOR'S TOTAL

PARCEL NUMBER ASSESSMENT
00726213
00726212
00726211
00726210
00726209
00726208
00726207
00726206
00726205
00726204
00726203
00726202
00726201
00727201
00727202
00727203
00727204
00727205
00727206
00727207
007281235
00728122s,
007281215
00728120S
007281 1 95
007281 1 85
007281 1 75
007281 16S
007281 1 55
007281145
007281 1 35
007281125
007281 1 1 S
007281 1 0S
00728109S
00728108S
00728107S
007281065
00728105S
00728104S
007281035
007281 02S
007282185
007282175
007282165
0072821 55
007282145
007282135
007282125
007282115
0072821 0S
00728209S
00728208S
007282075
00728206S
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
c-2

ASSESSMENT

DIAGRAM NUMBER
(F iscal Y ear 2026-2027 )

ASSESSOR'S TOTAL
CODE LOTNO. PARCEL NUMBER ASSESSMENT
27 26
25 24
23 60 6024
61 6024
62 6024
63 6024
64 6024
(TRACT NO.4459)
105 6024
106 6024
107 6024
108 6024
109 6024
110 6024
111 6024
112 6024
113 6024
114 6024
115 6024
116 6024
117 6024
118 6024
119 6024
120 6024
121 6024
122 6024
123 6024
124 6024
125 6024
126 6024
127 6024
128 6024
129 6024
130 6024
131 6024
132 6024
133 6024
134 6024
135 6024
136 6024
137 6024
138 6024
139 6024
140 6024
141 6024
142 6024
143 6024
144 6024
145 6024
146 6024
147 6024
148 6024
149 6024
150 6024
151 6024
152 6024

HACIENDA VILLA APARTMENTS
153 6024
1 2
3 4
5 b
7 8
o
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 29
30 31
32 33
34 35
36 37
38 39
40 41
42 43
44 45
46 47
48 00728205S
007282045
00728203S
007282025
00728201S
$35.00
$35.00
$35.00
$35.00
$35.00
007291 01 S
007291025
007291035
00729104S
007291055
007291065
00729107S
007291 08S
007291 09S
007291 1 0S
007291 1 1 S
007291125
007291 1 35
007291145
007291 1 55
00729201S
007292025
00729203S
007292045
00729205S
00729206S
007292075
00729208S
00729209S
007293245
00729323S
007293225
007293215
00729320S
0072931 95
0072931 85
007293175
007293165
0072931 55
007293145
0072931 35
007293125
0072931 1S
00729310S
00729309S
00729308S
00729307S
00729306S
00729305S
00729304S
00729303S
00729302S
00729301S
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
790.02 - 2025 c-3
00730228 $2,356.00

ASSESSMENT

DIAGRAM NUMBER
(TRACT
CODE LOTNO.
(Fiscal Y ear 2026-2027 )

ASSESSOR'S TOTAL

PARCEL NUMBER ASSESSMENT
NO.4608)
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
I
2 3
4 5
o
7 8
o
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 44
43 42
41 40
39 38
37 36
35 34
33 32
31 30
29 28
27 zo
25 24
23 22
4 3
2 1
14 15
16 17
0072921 0S
007292115
007292125
0072921 35
007292145
0072921 55
007292165
007292175
007292185
007291175
007291 1 85
007291 1 95
00729120S
007291215
007291225
007291235
007291245
007291255
00729126S
007291275
007291285
007291295
00729130S
00729131S
007302275
00730226S
00730225S
007302245
00730223S
007302225
00730221 S
00730220s
007302195
0073021 8S
007302175
007302165
0073021 55
007302145
0073021 35
007302125
0073021 1 S
0073021 0s
00730209s
00730208s
00730207s
00730206s
00730205s
00730204s
00730203s
00730202s
00730201 s
00730108s
00730107s
00730106s
007301 05s
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
790.02 - 2025 c-4
209 6024
210 6024
211 6024
212 6024
213 6024
214 6024
215 6024
216 6024
217 6024
218 6024
219 6024
220 6024
221 6024
(TRACT NO 4851, PHASE l)
222 6024
223 6024
224 6024
225 6024
226 6024
227 6024
228 6024
229 6024
230 6024
231 6024
232 6024
233 6024
234 6024
235 6024
236 6024
237 6024
238 6024
(TRACT NO.4851, PHASE l)
239 6024
240 6024
241 6024
242 6024
243 6024
244 6024
245 6024
246 6024
247 6024
248 6024
249 6024
250 6024
251 6024
252 6024
253 6024
254 6024
255 6024
256 6024
257 6024
258 6024
259 6024
260 6024
261 6024
262 6024
CODE LOTNO.
1 2
3 4
5 6
7 8
I
10 11
12 13
14 15
16 17
( Fiscal Y ear 2026-2027 )

ASSESSOR'S TOTAL

PARCEL NUMBER ASSESSMENT
00730104s
007301 03s
007301 02s
007301 01 s
007301 1 75
007301 1 65
007301 1 55
007301 145
007301 1 35
007301 12S
00730'1 1 1S
007301 1 0s
00730109s
00731 1 01 S
00731 102S
00731 103S
00731 1 04S
00731 1 05S
00731 1 065
00731 1 07S
00731 1 08S
00731 1 09S
00731 1 1 0S
00731 1 1 1S
00731 1 125
00731 1 1 35
00731 1 145
00731 1 1 55
00731 1 165
00731 1 1 75

ASSESSMENT

DIAGRAM NUMBER
18 19
20 21
5 6
7 8
9 10
11 12
13 $35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
18 19
20 21
22 23
24 25
26 27
28 29
30 31
32 33
34 35
36 37
38 39
40 41
00731 1 1 8S
00731 1 1 9S
00731 120S
007311215
00731 201 S
00731202S
00731203S
00731204S
00731205S
00731206S
00731207S
00731208S
007312095
0073121 0S
0073121 1 S
007312125
007312135
007312145
00731 21 55
007312165
007312175
00731 21 85
00731 21 95
007312205
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
790.02 - 2025 c-5

ASSESSMENT
DIAGRAM NUMBER CODE LOT NO.
(PORTION OF REMAINDER PARCEL, TRACT 4850)
263 6024
(PARCEL MAP 94-1, PARCEL
,,A")
264 6024
(TRACT NO.4851, PHASE ll)
265 6024 1
266 6024 2
267 6024 3
268 6024 4
269 6024 5
270 6024 6
271 6024 7
272 6024 8
273 6024 9
274 6024 10
275 6024 11
276 6024 12
277 6024 13
278 6024 14
279 6024 15
280 6024 16
281 6024 17
282 6024 18
283 6024 19
284 6024 20
285 6024 21
286 6024 22
287 6024 23
288 6024 24
289 6024 25
290 6024 26
291 6024 27
292 6024 28
293 6024 29
294 6024 30
295 6024 31
296 6024 32
297 6024 33
298 6024 34
299 6024 35
300 6024 36
301 6024 37
(TRACT NO.4851, PHASE lll)
302 6024 1
303 6024 2
304 6024 3
305 6024 4
306 6024 5
307 6024 6
308 6024 7
309 6024 8
310 6024 9
311 6024 10
312 6024 11
313 6024 12
(F iscal Y ear 2026-2027 )

ASSESSOR'S TOTAL

PARCEL NUMBER ASSESSMENT
007251 02S $1,284.00
00706222 $111.00
00731239S
00731238S
00731237S
007312365
00731235S
00731234S
00731233S
00731232S
00731231 S
00731230S
007312295
00731228S
007312275
007312265
007312255
007312245
007312235
007312225
007312215
00731 31 85
00731 31 75
00731 31 65
00731 31 55
00731314S
00731 31 3S
007313125
00731 31 1 S
00731 31 0S
00731 3095
00731 3085
00731 3075
00731 3065
00731 3055
00731 304S
00731303S
00731302S
00731 301 S
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
00 00
00 00
00 00
00 00
00 00
00 00
$35.
$35.
$35.
$35.
$35.
$35.
$35.
$35
$35.
$35.
$35.
$35.
00731335S
007313345
00731 3335
00731 332S
00731 331 S
00731 330S
00731 3295
00731 3285
007313275
007313265
00731325S
007313245
790.02 - 2025 c-6

ASSESSMENT

DIAGRAM NUMBER
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
338
339
340
341
342
343
344
(TRACT 5202)
(Fiscal Y ear 2026-2027)

ASSESSOR'S TOTAL
CODE LOTNO. PARCEL NUMBER ASSESSMENT
1 2
3 4
5 6
7 8
o
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
13 14
15 16
17 18
'19
20 21
22 23
24 25
26 27
28 29
30 31
32 33
34 35
36 37
38 39
40 41
42 43
00731 3235
007313225
00731 321 S
00731320S
0073131 95
0073141 1S
0073141 0S
007314095
007314085
007314075
007314065
007314055
007314045
007314035
007314025
00731401 S
007321 01 S
007321025
007321 035
007321045
007321 055
007321065
007321 07S
007321085
007322075
00732206S
00732205S
007322045
00732203S
007322025
007322015
007291 555
007291 54S
007291 535
007291525
007291 51 S
00729150S
007291495
007291485
007291475
00729146S
007291455
007291445
007291435
007291425
007291415
00729140S
007291 39S
007291 38S
007291375
007291 365
007291 35S
007291 34S
007291 335
007291325
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
363
364
365
366
367
368
369
790.02 - 2025 c-7

ASSESSMENT

DIAGRAM NUMBER
370
371
372
373
374
375
376
377
378
379
380
381
382
383
(TRACT 5367)
384
385
386
387
388
389
390
391
(TRACT 5529)
392
393
394
395
396
397
398
399
400
401
402
403
404
405
406
407
408
409
410
411
412
413
414
415
416
417
418
419
420
421
422
423
CODE LOTNO.
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
(Fiscal Y ear 2026-2027 )

ASSESSOR'S TOTAL

PARCEL NUMBER ASSESSMENT
007294145
0072941 35
007294125
007294115
0072941 0S
00729409S
00729408S
007294075
00729406S
00729405S
007294045
00729403S
007294025
00729401 S
$35.00
00 00
00 00
00 00
00 00
00 00
00 00
00 $35.
$35.
$35.
$35.
$35.
$35.
$35.
$35.
$35.
$35.
$35.
$35.
$35.
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
25 26
27 28
29 30
31 32
33 34
35 36
37 38
1 2
3 4
5 6
7 8
0081 0030
0081 0031
008'10032
0081 0033
0081 0034
0081 0035
0081 0036
0081 0037
1 2
3 4
5 b
7 8
I
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 29
30 31
32 007341 01 S
007341 02S
00734103S
00734104S
00734105S
00734106S
00734107S
007341085
007341 095
007341 1 0S
007341 1 1S
007341125
00735501S
00735502S
00735503S
00735504S
00735505S
007341 1 35
007341 145
007341 155
007341 165
007341 175
007341 1 85
007341 1 95
00734120S
007341215
007341225
00734123S
007341245
00734125S
007341265
007341275
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
790.02 - 2025 c-8

ASSESSMENT

DIAGRAM NUMBER
424
425
426
427
428
429
430
431
432
433
434
435
436
437
438
439
440
441
442
443
444
445
446
447
448
449
450
451
452
453
454
455
456
457
458
459
460
461
462
463
464
465
466
467
468
469
470
471
472
473
474
475
476
477
478
479
007341285
007341295
007341 30S
007341 31 S
00734132S
007341335
00734134S
007341 355
007341 365
007341 37S
007341 38S
00734201 S
007342025
00734203S
007342045
00734205S
00734206S
007342075
00734208S
00734209S
0073421 0S
007342115
007342125
007342135
007342145
0073421 55
00736001 s
00736002s
00736003s
00736004s
00736005s
00736006s
00736007s
00736008s
00736009s
0073601 0s
0073601 1S
007360125
0073601 35
00736014S
0073601 55
007360165
0073601 75
0073601 8S
0073601 95
00736020s
007351 01 S
007351 02S
00735103S
00735104S
007351055
00735601 S
00735602S
00735603S
00735604S
00735605S
CODE LOT NO.
( Fiscal Y ear 2026-2027 )

ASSESSOR'S TOTAL

ASSESSMENT

DIAGRAM NUMBER
480
481
482
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
501
502
503
504
505
506
507
508
509
510
511
s12
513
514
515
516
517
518
519
520
521
522
523
524
525
526
527
528
529
530
531
532
533
534
535
CODE LOTNO.
(F iscal Y ear 2026-2027 )

ASSESSOR'S TOTAL

PARCEL NUMBER ASSESSMENT
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
89 90
91 92
93 94
95 96
97 98
99 100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
00735606S
00735607S
00735608S
00735609S
00735610S
0073561 1S
00735612S
0073561 3S
007356145
0073561 55
007356165
0073561 75
0073561 85
0073561 95
00735620S
0073562'1S
00735622S
00735623S
00735624S
00735625S
00735626S
00735627S
00735628S
00735629S
00735630S
00735631 S
00735206S
00735207S
00735208S
00735209S
0073521 0S
00735201 S
00735202S
00735203S
00735204S
00735205S
00735308S
00735309S
0073531 0S
0073531 1 S
007353125
0073531 35
007353145
0073531 55
00736039S
00736040s
00736041S
00736042S
00736043S
00736044S
00736045S
00736046S
0073s301s
00735302S
00735303S
00735304S
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
790.02 - 2025 c-10

ASSESSMENT

DIAGRAM NUMBER
536
537
538
539
540
541
542
543
544
545
546
547
548
549
550
551
552
553
554
555
556
557
558
559
560
561
562
563
564
565
566
567
568
569
570
571
572
573
574
575
576
577
TRACT 6257
580
581
582
583
584
585
586
587
588
589
590
591
592
CODE LOTNO.
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
(Fiscal Y ear 2026-2027)

ASSESSOR'S TOTAL

PARCEL NUMBER ASSESSMENT
00735305S
00735306S
00735307S
00735401S
00735402S
00735403S
00736047S
00736048S
00736049S
00734401S
00734402S
00734403S
007344045
00734405S
00734406S
00734305S
00734306S
00734307S
00734308S
00734309S
00734301S
00734302S
00734303S
00734304S
00736021S
00736022S
00736023S
00736024S
00736025S
00736026S
00736027S
00736028S
00736029S
00736030s
00736031S
00736032S
00736033S
00736034S
00736035S
00736036S
00736037S
00736038S
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
$132.00
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
1 2
3 4
5 6
7 8
9 10
11 12
13 00738001s
00738002s
00738003s
00738004s
00738005s
00738006s
00738007s
00738008s
00738009s
oo738o1 os
0073801 1S
00738012S
0073801 3S
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
790.02 - 2025 c-11

ASSESSMENT

DIAGRAM NUMBER
593
594
595
596
597
598
599
600
601
602
603
604
605
606
607
608
609
610
611
612
613
614
615
616
617
618
619
620
621
622
623
624
625
626
627
628
629
630
631
TRACT 6313
632
633
634
635
636
637
638
639
640
641
642
643
644
645
646
647
CODE LOTNO.
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
790.02 - 2025
( Fiscal Y ear 2026-2027)

ASSESSOR'S TOTAL

PARCEL NUMBER ASSESSMENT
007380145
0073801 55
007380165
007380175
0073801 85
0073801 95
00738020s
00738021S
00738022S
00738023S
00738024S
00738025S
00738026S
00738027S
00738028S
00738029S
00738030s
00738031 S
00738032S
00738033S
00738034S
00738035S
00738036S
00738037S
00738038S
00738039S
00738040s
00738041 S
00739001 s
00739002s
00739003s
00739004s
00739005s
00739006s
00739007s
00739008s
00739009s
0073901 0s
0073901 1S
$94.
$e4
$94.
$e4.
$e4.
$94
$94
$94
$94
$94
$e4.
$94.
$94.
$e4.
$e4.
$94
$94
$94.
$94.
$94.
$94
$e4.
$e4.
$e4.
$e4
$94.
$e4
$94
$e4.
$e4.
$e4.
$94.
$94.
$94
$e4.
$94
$94.
$94.
$94
06 06
06 06
06 06
06 06
06 06
06 06
06 06
06 06
06 06
06 06
06 06
06 06
06 06
06 06
06 06
06 06
06 06
06 06
06 06
06 007390145
0073901 55
007390165
0073901 75
0073901 85
0073901 9S
00739020s
00739021 S
00739022S
00739023S
00739024S
00739025S
00739026S
00739027S
00739028S
00739029S
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
c-12

ASSESSMENT

DIAGRAM NUMBER
TRACT 6314
665
666
667
668
669
670
671
672
673
674
675
676
677
678
679
680
681
682
683
684
685
686
687
688
689
690
691
692
693
694
69s
696
697
698
699
700
701
702
CODE LOTNO.
(Fiscal Y ear 2026-2027) ASSESSOR'S TOTAL

PARCEL NUMBER ASSESSMENT
648
649
650
651
652
653
654
655
656
657
658
659
660
661
662
663
664
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
69 70
71 72
73 74
75 76
77 78
79 80
81 82
83 84
85 86
87 88
89 90
91 92
93 94
95 96
97 98
99 100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$e4.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
00739030s
00739031S
00739032S
00739033S
00739034S
00739035S
00739036S
00739037S
00739038S
00739039S
00739040s
00739041S
00739042S
00739043S
00739044S
00739045S
00739046S
00739049S
00739050s
00739051S
00739052S
00739053S
00739054S
00739055S
00739056S
00739057S
00739058S
00739059S
00739060s
00739061 S
00739062S
00739063S
00739064S
00739065S
00739066S
00739067S
00739068S
00739069S
00739070s
00739071S
00739072S
00738044S
00738045S
00738046S
00738047S
00738048S
00738049S
00738050s
00738051S
00738052S
00738053S
00738054S
00738055S
00738056S
007380575
790.02 - 2025 c-13

ASSESSMENT

DIAGRAM NUMBER
703
704
705
706
707
708
709
710
TRACT 6252
711
712
713
714
715
716
717
718
719
720
721
722
723
724
725
726
727
728
729
730
731
732
733
734
735
736
737
738
739
740
741
742
743
CODE LOTNO.
(Fiscal Y ear 2026-2027)

ASSESSOR'S TOTAL

PARCEL NUMBER ASSESSMENT
6024
6024
6024
6024
6024
6024
6024
6024
124
125
126
127
128
129
130
131
007380585
00738059S
00738060s
00738061S
00738062S
00738063S
00738064S
00738065S
00740035
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$94.06
$9,077.60
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
6024
1 2
3 4
5 6
7 8
o
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 29
30 31
32 33
34 00740002
00740003
00740004
00740005
00740006
00740007
00740008
00740009
0074001 0
00740011
00740012
0074001 3
00740014
00740015
00740016
00740017
00740018
0074001 I
00740020
00740021
00740022
00740023
00740024
00740025
00740026
00740027
00740028
00740029
00740030
00740031
00740032
00740033
00740034
$162.10
$162.10
$162.10
$162.10
$162.10
$162.10
$162.10
$162.1 0
$162.10
$162.10
$162.1 0
$162.1 0
$162.10
$162.10
$162.10
$162.10
$162.10
$162.10
$162.10
$162.10
$162.10
$162.10
$162.1 0
$162.1 0
$162.1 0
$162.1 0
$162.1 0
$162.1 0
$162.1 0
$162.10
$162.10
$162.10
$162.10

DEL RIO PLAGE APARTMENTS
744 6024
790.02 - 2025 c-14
PART D

METHOD OF APPORTIONMENT OF ASSESSMENT
LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 1
(Pursuant to the Landscaping and Lighting Act of 1972)
Method of Assessment Soread
The basic objective of the Assessment Spread is to distribute costs in accordance with the benefits received. Costs are to be spread equally to each residential unit (RU) as follows:
(a) For 2026-2027, Tracts 4010, 4060, 4459, 4608, 4850, 5202, 5367 , 4851 Phases I, ll, lll, Parcel "A", Parcel "B" and Hacienda Villa Apartments have been completed and accepted by the City. The combined tracts consist of 390 lots or parcels. Each single-fami! residential lot is considered an assessable unit. The total square footage of each multiresidential lot is divided by 6,000 square feet to determine the number of assessable units for each multi-residential lot. There is a total of 387 single-family RU lots and 3 multiresidential lots consistin g of 107 .17 RU lots for a total of 494.17 RU assessable units, each of which benefit equally from the improvements maintained by this landscaping and lighting maintenance district.
(b) For 2026-2027, Tracl 5529 has been completed and accepted by the City. The total number of RU lots in this subdivision is 186, each of which benefit equally from the improvements maintained by this landscaping and lighting maintenance district. (c) For 2026-2027 , f ract6257,6313, & 6314 have been completed and accepted by the City.

The total number of RU lots in this subdivision is '131, each of which benefit equally from the improvements maintained by this landscaping and lighting maintenance district. (d) For 2026-2027,Tract 6252, Outlot "A" (Del Rio Place Apartments), and Outlot "B" (Public Park) have been completed and accepted by the City. Tract 6252 consists of 33 single family residental lots and Outlot "A" consists of 56 Muti-family units. The total number of RU lots in this subdivision is 89, each of which benefit equally from the improvements maintained by this landscaping and lighting maintenance district.

Comoutinq lndividual Assessment
The total number of assessable units is 494.17 RU. The assessment will be $35.00 per RU for 2026-2027 due to the limitations of assessments below. The total calculated amount to be assessed for Fiscal Year 2026-2027 is $17,296.00 based on $35.00 multiplied by 494.17. This sentence does not apply to Tract 5529,6257,6313, 6314, &6252. (b) Tract 5529 - The total number of assessable units is 186 RU. The total estimated cost to be assessed for Fiscal Year 2026-2027 is $43,917.50. The maximum allowable assessment increase is equalto the change in CPI and shall not exceed 3.0%. The change in the CPI for Fiscal Year 2025-2026 was 2.70/0. Consequently, the total assessable cost of $43,917.50 will not be fully recovered through the FY 202612027 assessment since the maximum assessable amount is limited to the FY 202512026 assessment escalated by

2.7o/o, or $23,907.04 x1.027, equaling $24,552.53. The assessment will be $132.00. per RU for 2026-2027 for a total of $24,552.00. This applies only to Tract 5529. (c) Tract6257,6313, & 6314 - The total number of assessable units is 131 RU. The total estimated cost to be assessed for Fiscal Year 2026-2027 is $12,322.31. The maximum allowable assessment increase is equal to the change in CPI and shall not exceed 3.0%.

The change in the CPI for Fiscal Year 2025-2026 was 2.7o/o. Consequently, the total assessable cost of $12,322.31 will be be fully recovered through the FY 202612027 assessment since the maximum assessable amount is limited to the FY 202512026 (a)
790.02 - 2025 D-1
assessment escalated by 2.7%, or $11,998.35 x 1.027, equaling $12,322.31. The assessment will be $94.06. per RU for 2026-2027 for a total of $12,321.86. This applies only to TracI6257 ,6313, & 6314.
(d)
(a)
(b)
December 2006
December 2007
December 2008
December 2009
December 2010
December 2011
December 2012
December 2013
December 2014
2008-2009
2009-201 0
2410-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2A16-2017
Tract6252 - The total number of assessable units is 89 RU. The total estimated cost to be assessed for Fiscal Year 2026-2027 is $14,427.39 The maximum allowable assessment increase is equalto the change in CPI and shall not exceed 3.0%. The change in the CPI for Fiscal Year 2025-2026 was 2.7o/o. Consequently, the total assessable cost of $14,427.39 will be fully recovered through the FY 202612027 assessment since the maximum assessable amount is limited to the FY 202512026 assessment escalated by

2.7o/o,or $14,048.09 x1.027, equaling $14,427.39. Theassessmentwill be$162.10. per RU for 2026-2027. This applies only to Tract6252.
* Amount was rounded down one cent to conform to County Auditor requirements that the amount to be billed to the taxpayer must be an even amount (divisible by 2)' Lim itations on Assessments
Normally, the assessable costs may be revised upon preparation of the Engineer's Report for each fiscal year for which assessments are to be levied and collected as provided for in the Landscaping and Lighting Act of 1972 (State Streets and Highways Code Section 22500) and Division 15 Part 2 as amended per Proposition 218; however, this assessment district was created utilizing a fixed assessment of $35.00 per assessable unit. This sentence does not apply to Tract 5529.

This Subsection (b) only applies to Tract 5529. Assessments in each successive year are subject to an annual adjustment tied to the Consumer Price lndex-U for the San Francisco Bay Area as of December of each succeeding year (the "CPl'), with a maximum annual CPI adjustment not to exceed 3%. The calculation of the change in the CPI shall use December 2006 as the base year CPl. ln the event that the annual change in the CPI exceeds 3o/o, an\ percentage change in excess of 3o/o can be cumulatively reserved and can be added to the annual change in the CPI for years in which the CPI change is less than 3%. lf the actual assessment rate for any given year is not increased by an amount equal to a minimum of 3% or the yearly CPI change plus any CPI change in previous years that was in excess of 3o/0, the maximum authorized assessment shall increase by this amount. ln such event, the maximum authorized assessment shall be equal to the base year assessment as adjusted by the increase to the CPl, plus any and all CPI adjustments deferred in any and all prior years.

The increases in these assessments, according to the formula described above, was approved by a majority vote of the owners of the lots in Tract No. 5529 voting in a land owner ballot proceeding on the issue of the assessment conducted on August 6, 2007, in accordance with Article XlllD of the California Constitution and Section 53753 of the California Government Code.

The following table indicates the annual CPI changes since December 2006 as wellas the changes to the assessment for previous years and this year.

3.Mo/o

0.02o/o

2.610/o

1.52%

2.9%

2.2o/o

2.60/o

2.7o/o

3.2o/o

3.00%

0.86%

0.00%
-1.43%

2.90o/o
-14.66%

2.650/o

2.70%

3.00o/o
Assessment cPt cPl
790.02 - 2025
I December2015
D-2
December 2016
December 2017
December 2018
December 2019
December 2020
December 2021
December 2022
December 2023
December 2024
December 2025
December 2021
December 2022
December 2023
December 2024
December 2025

3.5%

2.9%

3.9o/o

3.3o/o

1.7o/o

3.2o/o

5.60/o

3.7o/o

2.4o/o

2.7%

3.2%

5.60/o

3.7o/o

2.4o/o

2.7o/o

3.00%

2.90%

3.00%

1.70%

3.00%

2.4o/o

2.7o/o
2017-2018
2018-2019
2019-2020
2020-2021
2021-2022
2022-2023
2023-2024
2024-2025
2025-2026
(c)
(d)
The maximum annual CPI adjustment is not to exceed 3o/o. ln accordance with the foregoing limitations, the assessment for 2026-2027 will be $132.00 per RU.

This Subsection (c) only applies to Tract Tract6257,6313, & 6314. Assessments in each successive year are subject to an annual adjustment tied to the Consumer Price lndex-U for the San Francisco Bay Area as of December of each succeeding year (the "CPl"), with a maximum annual CPI adjustment not to exceed 3%. The calculation of the change in the CPI shall use December 2021 as the base year CPl.

The increases in these assessments, according to the formula described above, was approved by a majority vote of the owners of the lots in Tract No 6257, 6313, & 6314 voting in a land owner ballot proceeding on the issue of the assessment conducted on December 07,2020, in accordance with Article XlllD of the California Constitution and Section 53753 of the California Government Code.

AnnualCPl CPlChange Fiscal Year
Assessment
Change
December 2021
December2022
December 2023
December 2024
December 2025

3.2o/o

5.60/0

3.7o/o

2.40/o

2.7o/o
2022-2023
2023-2024
2024-2025
2025-2026
2026-2027

3.00%

3.00o/o

3.00%

2.4o/o

2.7%
The maximum annual CPI adjustment is not to exceed 3o/o. ln accordance with the foregoing limitations, the assessment for 2026-2027 will be $94.06 per RU.

This Subsection (d) only applies to Tract 6252. Assessments in each successive year are subject to an annual adjustment tied to the Consumer Price lndex-U for the San Francisco Bay Area as of December of each succeeding year (the 'CPl'), with a maximum annual CPI adjustment not to exceed 3%. The calculation of the change in the CPI shall use December 2021 as the base year CPl.

The increases in these assessments, according to the formula described above, was approved by a majority vote of the owners of the lots in Tract No. 6252 voting in a land owner ballot proceeding on the issue of the assessment conducted on March 1,2021, in accordance with Article XlllD of the California Constitution and Section 6252 of the California Government Code.
2022-2023
2023-2024
2024-2025
2025-2026
2026-2027

3.00%

2.4o/o

2.7%
The maximum annual CPI adjustment is not to exceed 3%. ln accordance with the foregoing limitations, the assessment for 2026-2027 will be $162.10 per RU.

Annual GPI Cha
Assessment
e Fiscal Year
790.02 - 2025 D-3
PART E

PROPERTY OWNERS LIST
LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 1
(Pursuant to the Landscaping and Lighting Act of 1972)
The names and addresses of each property owner are shown on the County Assessor's Tax Assessment Roll as identified by the Assessor's Parcel Number in Part C of this report' 790.02 - 2025 E-1
PART F

ASSESSMENT DIAGRAM
LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 1
(Pursuant to the Landscaping and Lighting Act of 1972)
The assessment and boundary diagrams for these proceedings, entitled "Assessment Diagram of City of Firebaugh Landscaping and Lighting Maintenance District No. 1" and "Boundary Diagram of City of Firebaugh Landscaping and Lighting Maintenance District No. 1" are on file in City Hall and attached hereto and made a part hereof and as amended to show new land divisions or annexations of new parcels to the district.

DESCRIPTION OF THE BOUNDARY
The exterior boundary of this District is shown on a map entitled, "Boundary Diagram of City of Firebaugh Landscaping and Lighting Maintenance District No. 1", which is on file in City Halland attached hereto and made a part hereof and as amended to show new land divisions or annexations of new parcels to the district. The District boundary is further described as follows:

A. Tract 4010, Valle De Paz, in the City of Firebaugh, County of Fresno, State of California, as recorded in Volume 48 of Plats, at Page 22, Fresno County Records.

B. Tract 4060, Valle De Pazll, in the City of Firebaugh, County of Fresno, State of California, as recorded in Volume 49 of Plats, at Page 49, Fresno County Records.

A parcel lying adjacent to a portron of the North side of Tract 4060, being more particularly described as follows:

Beginning at the most northerly corner of Lot 1 of Tract 4060, Valle De Paz ll, in the City of Firebaugh, County of Fresno, thence north along the westerly right-of-way of Storey Road a distance of 115.00 feet to a point; thence west perpendicular to said right-of-way a distance of 335.00 feet to a point; thence South, parallel to said right-of-way a distance of 375.00 feet to a point on the northerly boundary of said Tract 4060; thence northerly along said northerly boundary to the most northerly corner of Lot 1, said point being the Point of Beginning.

Tract 4459, Riverview Estates, in the City of Firebaugh, County of Fresno, as recorded in Volume 54 of Plats at Pages 54 and 55, Fresno County Records, Hacienda Villa Apartments:

Beginning at the Northeast corner of Parcel B according to the map entitled "Parcel Map No. 84-1 in the City of Firebaugh, County of Fresno, California," recorded in Book 42 of Parcel Maps at Page 80, Fresno County Records, said point being on the West line of a 60-foot street known as Storey Avenue; thence South 89"37'00" East 60.00 feet to the East line of Storey Avenue; thence along the East line of Storey Avenue North 00'23'00" East 160.00 feet to the True Point of Beginning; thence continuing along the East line of Storey Avenue North 00'23'00" East 535.00 feet; thence South 89"37'00" East 535.00 feet; thence South 00"23'00" West, 535.00 feet; thence North 89'37'00" West 535.00 feet to the True Point of Beginning.

Tract 4608, Riverview Estates, Phase ll, in the City of Firebaugh, County of Fresno, State of California, as recorded in Volume 56 of Plats, at Pages 26 and 27, Fresno County Records.
c
D.

G
H. Tract 4850, Cerca Del Rio, in the City of Firebaugh, County of Fresno, State of California, as recorded in Volume 63 of Plats, at pages 8 and 9, Fresno County Records. 790.02 - 2025 F -1
Tract No. 4851, Phase '1, Cerca Del Rio ll, in the City of Firebaugh, County of Fresno, State of California, as recorded in Volume 64 of Plats at page 17, Fresno County Records.

Parcel "A" of Parcel Map 94-1, in the City of Firebaugh, County of Fresno, State of California, as recorded in Volume 25 of Parcel Maps at page 57, Fresno County Records.

Parcel "B" being a portion of remainder Parcel as shown on the map of Tract No. 4850 as recorded in Volume 63 at pages 8 and 9, Fresno County Records.

Tract No. 4851, Phase ll, Cerca Del Rio ll, in the City of Firebaugh, County of Fresno, and State of California as recorded in Volume 64 of Plats at page 80, Fresno County Records.

Tract No. 4851, Phase lll, Cerca Del Rio ll, in the City of Firebaugh, County of Fresno, State of California, as recorded Volume 65 of Plats at page 12, Fresno County Records.

Tract5202, Cerca Del Rio lll, in the City of Firebaugh, County of Fresno, State of California, as recorded in Volume 68 of Plats, at Pages 70 and 71, Fresno County Records.

Tract 5367, in the City of Firebaugh, County of Fresno, State of California, as recorded in Volume 71 of Plats, at pages 59 and 60, Fresno County Records.

Tract 5529, in the City of Firebaugh, County of Fresno, State of California, as recorded in Volume 78 of Plats, at pages 79 through 82, Fresno County Records.

All that real property situated in the west half of Section 20, Township 12 South, Range 14 East, Mount Diablo Base and Meridian, City of Firebaugh, County of Fresno, State of California, more partifularly described as follows:

P. Tracl6257, in the City of Firebaugh, County of Fresno, State of California, as recorded in Volume 89 of Plats, at pages 49-51, Fresno County Records.

Tract 6313, in the City of Firebaugh, County of Fresno, State of California, as recorded in Volume 89 of Plats, at pages 4-6, Fresno County Records.

R. Tract 6314, in the City of Firebaugh, County of Fresno, State of California, as recorded in Volume 90 of Plats, at pages 4-6, Fresno County Records.

Allthat real property situated in portions of Sections 19 & 20, Township 12 South, Range 14 East, Mount Diablo Base and Meridian, City of Firebaugh, County of Fresno, State of California, more partifularly described as follows:

S Tracl6252, in the City of Firebaugh, County of Fresno, State of California, as recorded in Volume 89 of Plats, at pages 95-98, Fresno County Records.

Together with Outlot "A: of said Tract Map No. 6252.
t.

H
J
K.

N.
o.
o
790.02 - 2025 F-2

CLERK'S CERTIFICATION TO COUNTY AUDITOR
LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO.1
(Pursuant to the Landscaping and Lighting Act of 1972)
TO THE COUNTY AUDITOR OF THE COUNTY OF FRESNO:

I do hereby certify that the attached document is a true copy of that certain Engineer's Report, including assessment and assessment and boundary diagrams, for Assessment District No. 1, City of Firebaugh, confirmed by the City Council of the City of Firebaugh on the 1st day of June 2026, by its Resolution No. 2026-
The document is certified, and is filed with you, pursuant to Section 22641 of the Streets and Highways Code.

Dated
Ben Gallegos, City Manager
City of Firebaugh
lsEAL]
790.02 - 2025
Apr 21,2026-10r084m
VICOF\790\02\cad\planst\2G2n9002G1 01 {.dwg

LANDSGAPING AND LIGHTING MAINTENANGE
DISTRIGT No. l ASSESSMENT DIAGRAM

GITY OF FTREBAUGH, FRESNO COUNTY

CALIFORNIA
SHEET 2
SCALE IN FEET -I0 I ', .., ,I 2000

AN ASSESSMENT WAS LEVIED BY THE CITY COUNCIL OF THE CITY OF FIREBAUGH ONTHE LOTS, PIECES AND PARCILS OF LAND SHOWN ON THIS ASSESSMENT DIAGRAM. SAID ASSISSI/ENT WAS LEVIED ON THE DAY OF-2026,BY SAID COUNCIL'S ADOPTION 0F RESOLUTION No.-. SAID

ASSESSMENT DIAGRAI/ AND THE ASSESSN/ENT ROLL WERE RECORDID IN THT OFFCE OF THE CITY CLERK OF SAID CW ON TH tr Y 0F 2026
REFERENCE S [/ADt TO SAID ASSESSIVTNT ROIL RTCORDTD IN THE OFFICE OFTHE Cry CLERK FOR THE EXACT AMOUNT OF EACH ASSESSI/ENT LEVIED AGAINST TACH PARCEL OF LAND SHOWN ON THIS ASSESSI/ENT DIAGRAI/.

CITY CLERK OF THE CITY OF FIREBAUGH
SNOTE: ALL PARCELS SHOWN ON THIS DIAGRAN/ ARE LOCATED

WITHIN THE CITY OF FIREBAUGH CITY LII/ITS,
City of Firebaugh - Assessment Diagram 1 ol24
Gouveio Engineering, lnc. .456 Sixth Street .Gustine, Colifornio 95322 ' (209) 854-3300 Apr 21,2026- 10:0&m
Vlcon790\02\cad\planstU&27\79002o1 0l -R.dwg
"P" STREET
------tr-ttrtr-tt_rts
"P" STREET
3 386 I
I
I
.l
IIII
'1
I
II
I a EBe-lI LJ I 008-100-35 L_____ FLUul
e. Fa-Ftr 008-100-32 FuJI.IJEFaIF@ FLI nnI OOT€OO nI OoI @O It7 --l 2 385 390 263 008- 1 00-3 1 + tr) I ooa-roo-io 007 -251 _02 -------1 1 8 I
008- 1 00-30 | 008-100-37 l---t---L
ALLEY

SCALE IN FEET
TRACT No. 5367 l: l . lSCALE SHOWN
I
0 100
-rr-rr_rr_..J
Parcel "A" SCALE IN FEET M
I
0 Li-;*rlit'!
720
l--cot)
cocOra
LEGEND
220 PARCEL ASSESSIilENT NUN/BER
LOT NUMBERASSESSOR,S PARCEL NUl\/BER

BENEFIT ZONE BOUNDARYPROPERTY LINEROW LINT
1 ool -302-1 4

SCALE SHOWN
Gity of Firebaugh - Assessment Diagram 2of 24
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220 PARCEL ASSESSMENT NU[/BER
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220 PARCEL ASSESSIVENT NUl\/BER
LOT NUl\/BERASSESSOR,S PARCEL NUMBER

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220 PARCEL ASSESSI\,,IENT NU[/BER

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220 PARCEL ASSESSN/ENT NU[/BER

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220 PARCEL ASSTSSN/ENT NUMBER

LOT NUI/BERASSESSOR,S PARCEL NUMBER

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PARCEL ASSESSMENT NUMBER

LOT NUMBERASSESSOR,S PARCEL NUMBER

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220 PARCEL ASSESSMENT NU[/BTR
LOT NUN/BERASSESSOR,S PARCTL NU[/BER

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PROPERTY LINEROW LINE
1 oo7 -302-1 4
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City of Firebaugh - Assessment Diagram TRACT No. 5202 11 ol 24 Gouveio Engineering, lnc. .456 Sixth Street .Gustine, Cclifornio 95322 ' (209) 854-3300 Apr 21,2026- 10:09am
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220 PARCEL ASSESSMENT NUMBER
LOT NUMBERASSESSOR,S PARCEL NUl\/BTR

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1 PARCEL ASSESSMENI NUMBERLOT NUMBER

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City of Firebaugh - Assessment Diagram TRACT No. 6314 17 of24 Gouveio Engineering, lnc. .456 Sixth Street .Gusiine, Colifornio 95322 . (209) 854-3300 Apr 21, 2025- 10:10am
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City of Firebaugh - Assessment Diagram TRACT No. 6257 18 ol24 Gouveio Engineering, lnc. .456 Sixth Street .Gustine, Cclifornio 95322 ' (209) 854-3300 &r 21,2026-10r10am
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City of Firebaugh - Assessment Diagram TRACT No. 4850 19 oI24 Gouveio Engineering, Inc. .456 Sixth Street .Gustine, Colifornio 95322 ' (209) 854-3300 A$ 21,2026-10:10am
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LEGEND
220 PARCEL ASSESSMENT NU[/BER

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City of Firebaugh - Assessment Diagram TRACT No. 4010 22 ot24 Gouveio Engineering, lnc. .456 Sixth Sireet .Gustine, Colifornio 95322 , (209) 854-JJ00 Apr 21,2026- 10:10am
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Gity of Firebaugh - Assessment Diagram TRACT No. 4851 24 ot 24 Gouveio Engineering, lnc. .456 Sixth Street .Gustine, Colifornio 95322 '(209) 854-J300 TO:

FROM:

DATE:

SUBJECT:

City of Firebaugh City Council
Kelsey George, Planning Consultant
May 4,2026
Vesting Tentative Tract Map No. 6535 and Planned Development Permit No.

PDP2025-01 (Habitat for Humanity Phase 2): Consideration of a Resolution approving Vesting Tentative Tract Map No. 6535 and an Ordinance approving Planned Development Permit No. PDP2025-Ol for a l3-lot single-family residential subdivision at 199 N Street (APNs 007-050-15 and 007-050-16).

RECOMMENDATION:

1. Adopt Resolution No. 26-20 approving Vesting Tentative Tract Map No. 6535 to subdivide the subject property into thirteen (13) residential lots and one stormwater basin lot, subject to the findings and conditions of approval contained therein; and

2. Introduce and waive the first reading of Ordinance No. 26-02 approving Planned Development permit No. PDP2025-01to establish site-specific development standards for the project site, subject to the findings contained therein.

EXECUTIVE SUMMARY:

Habitat for Humanity Fresno, Inc. (Applicant) is requesting approval of Vesting Tentative Tract Map No. 6535 and planned Development Permit No. PDP2025-01to subdivide approximately 2.45 acres into a 13-lot single-family residential subdivision and stormwater basin located at 199 N Street (APNs 007- 050-15 and 007-050-16). The Planned Development Permit would allow deviations from certain development standards of the underlying zoningdistrict to establish site-specific development standards for the subdivision.

The project represents a continuation of Habitat for Humanity's residential development efforts within the iity of Firebaugh. Although the project site is not contiguous with the previously approved Phase 1 subdivision (formerly San Joaquin Villas), both projects share the same developer and housing program and support ih. "*punrion
of affordable homeownership opportunities within the community' on April 13,2016, the Firebaugh Planning Commission conducted a duly noticed public hearing and adopted resolutions r".o--"nding approval of the Tentative Map and Planned Development Permit. The City Council is the final decision-making body for these entitlements.

PROJECT LOCATION AND LAND USE CIIARACTERISTICS:

The proposed project site is located atl99 N Street (APNs 007-050-15 and 007-050-16) within the City of Firebaugtr. ttre site is located on the east side of N Street (State Route 33), generally north of Clyde Fannon Dive, as shown in Figure 1 (Project Location Map) and Figure 2 (Assessor Parcel Number Map).

The subject property consists of two parcels totaling approximately 2.45 acres and is zoned R-3 (MultiFamily Residentiat) with a General Plan land use designation of High Density Residential.

Page I of8
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Figure 1
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PROJECT ANALYSIS:

The proposed Vesting Tentative Tract Map No. 6535 and Planned Development Permit No. PDP2025- 01 have been analyzed for consistency with the following:
l. Firebaugh ZoningCode

2. Firebaugh Subdivision Code

3. Firebaugh General Plan

4. California Environmental Quality Act (CEQA)
Zonine Code
ftt" p.oi"rt site consists of two parcels: APN 007-050-15 (approximately 0.62 acres) and APN 007-050- 16 (appioximately 1.83 acres). Both parcels are zoned R-3 (Multi-Family Residential), with APN 007- 050-f6 carrying a "(P)" suffrx indicating a previously approved Planned Development overlay. Any prior develop-i"t siandards associated with that overlay would be superseded upon approval of the proposed Planned Development Permit. The project site zoning is illustrated in Figure3 (ZoningMap).

Page 3 of 8 ends

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City of Firebaugh Zoning District Map
Pursuant to Firebaugh Municipal Code (FMC) Section 25-19, single-family dwellings are a permitted use within the R-3 zoning district, subject to applicable development standards. The applicant has submitted planned Development Permit No. PDP2025-01to allow deviations from these standards in order to establish site-specific development standards for the subdivision.

FMC Chapter 25-39 governs the Planned Development (PD) district, which functions as an overlay to allow flexibility in development standards while ensuring coordinated site design and responsiveness to community needs, including housing affordability. The requested Planned Development Permit allows modifications to development standards such as lot size, setbacks, and lot dimensions to accommodate a functional subdivision layout while maintaining compatibility with surrounding residential development. These modifications are summarized in Table I below.

Page 4 ends

Required Pursuant to FMC Proposed with PDP2025-01
25-19
Development Standard
(minimum)
60-feet/40-feet 4}-feetl 22-feet Lot Width (interior/cul-de-sac) Lot Depth 100-feet 77-feet
Lot Area 7,500 sf 3,400sf
Front/Garage Setback 1 5-feet/20-feet 19-feet
3-feet/5-feet.

NOTE: each lot will have 8-
feet total in side yard setback
with one side being a
minimum of S-feet.

Side Setback (interior/exterior) 5-feet/10-feet
6-feet Rear Setback I 0-feet
Table 1- PDP2025-01 Standards
All other development standards, including building height, lot coverage, and parking, will comply with applicable provisions of the Firebaugh Municipal Code'
The FMC requires that residential development on parcels larger than three-quarters (%) of an acre achieve a minimum density of 20 dwelling units per acre, unless it can be demonstrated that affordability objectives can be achieved at a lower density. The applicant has submitted a justification memorandum demonstrating that affordability can be achieved at the proposed density of approximately 5.3 dwelling units per u"r", ur the project will be developed by a nonprofit affordable housing provider and sold to income-qualified households eaming between 30Yo and 80% of Area Median Income (AMD. Based on this justification, staff finds the proposed density to be appropriate and consistent with the intent of the tvtunicipal Code and the affordability objectives of the Planned Development district. per the FMC, a pDP is required for projects seeking a deviation from the development standards outlined in the zoningcode. Per Section 25-39.8, the City Council must make the following findings in order to approve the PDP:
a. That the area proposed to be so zoned is generally suitable for the proposed project but for reasons affecting pu-blic health, safety, comfort, general welfare and orderly community growth or to promote innovative development that responds to community needs, it is appropriate to classiff such area within the planned development district, subject to a development plan provided for in this $ 25-39.

The subject property is designated High Density Residential and zoned R-3 (Multi-Family Residential), which supports residential development. The application of a Planned Development overlay is appropriate to allow flexibility in development standards necessary to accommodate the site's configuration and to facilitate development of affordable housing. The PD overlay enables a coordinated and functional subdivision design that would not be achievable through strict application of conventional zoning standards.
b. That the proposed project authorized by the planned development zone will provide benefits and safeguards equal to, or greater than those that would be provided by the regulations applicable to the underlying zone district, with respect to public health, safety, comfort and general welfare and orderly physical growth and development of the City.

The Planned Development Permit allows modifications to development standards, including reductions in lot size, setbacl<s, and lot dimensions, to accommodate the subdivision design' Despite these modifications, the project will provide a well-designed residential neighborhood

Page 5 ends

with adequate access, utilities, drainage, and infrastructure improvements in compliance with City standards.

Additionally, the project provides a substantial public benefit by facilitating development of affordable homeownership opportunities through Habitat for Humanity, a nonprofit housing provider. This benefi.t supports community needs and advances the City's housing goals, thereby ffietting deviationsfrom standard zoning requirements while maintaining public health, safety, and welfare.
c. A11 owners of the property within the proposed planned development zone have consented in writing to the adoption of the district and development plan.

The applicant has demonstrated ownership and/or authorization to develop the subiect property, and all property owners have consented to the proposed Planned Development Permit and as s ociated development plan.

Subdivision Code
the applicant is requesting to subdivide the subject property into thirteen (13) lots for single-family residential purposes. Pursuant to the City of Firebaugh Subdivision Ordinance and the California Subdivisioo Mup Act, the Planning Commission reviewed the Tentative Map and recommended approval to the City Council, which is the final decision-making authority.

The proposed subdivision has been reviewed for consistency with the Planned Development Permit, the Firebaugh ZoningOrdinance, the Subdivision Ordinance, and the California Subdivision Map Act. The project includes provisions for access, utilities, and drainage, and is designed to function as a cohesive residential subdivision.

Based on this review, staff finds that the proposed Vesting Tentative Tract Map No. 6535 is consistent with applicable subdivision regulations, subject to the conditions of approval.

General Plan
The project site has a land use designation of High Density Residential, which is consistent with the underlying R-3 zoning district and the proposed Planned Development overlay. The High Density Residential designation is intended to accommodate residential development and support the creation of cohesive neighborhoods. As shown in Figure 4 (Land Use Map), the subject property is surrounded by similar residential land uses.

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Figure 4:

City of Firebaugh Land Use Map
In addition to being consistent with the land use designation, the proposed project is also consistent with applicable General Plan goals and policies related to residential neighborhood compatibility. These policies emphasize the development of neighborhoods that are visually cohesive and protected from incompatible land uses.

The proposed 13-lot single-family residential subdivision is consistent with these objectives, as it introduces a residential use that is compatible with the surrounding neighborhood and consistent with the City's planned land use pattern.

Based on the above, staff finds that the proposed project is consistent with the Firebaugh General Plan.

CEQA
The project has been reviewed pursuant to the California Environmental Quality Act (CEQA) and is categorically exempt under CEQA Guidelines Section 15332 (Infill Development Projects). The project site is less than five acres in size, is consistent with the General Plan and zoningdesignation, is located within city limits and substantially surrounded by urban uses, and will not result in significant impacts related to traffic, noise, air quality, or water quality.

Based on the above, staff finds that the project qualifies for a Class 32 Categoical Exemption, and no further environmental review is required.
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Low Density Residential
Medium Density Residential
High Density Residential
Nei|ghborhood Commercial
Central Commercial
Service Commercial
Light lndustrial
Heavy lndustrial
Public/Quasi Public
ParldRecreation
Open Space
Agriculture

Page 7 of 8 ends

Public Hearins Notification:

Public notice for the Planning Commission
accordance with Government Code Section
hearing and City Council hearing was provided in
65090 and applicable provisions of the Firebaugh
Municipal Code, including noticing requirements for zoning-related actions ATTACHMENTS:

1. Resolution 26-20

2. Ordinance 26-02

3. VTSM 6535 MaP and PDP Exhibit

Page 8 ends

ORDINANCE NO. 26-02

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FIREBAUGH APPROVING PLAIINED DEVELOPMENT PERMIT NO. PDP2O25-01 TO ESTABLISH SITE-SPECIF'IC DEVELOPMENT STANDARDS FOR PROPERTY LOCATED AT 199 N STREET (APNs 007-050-15 AND 007-050-16) The City Council of the City of Firebaugh does ordain as follows:

WHEREAS' Habitat for Humanity Fresno, Inc. ("Applicant") submitted an application requesting approval of Vesting Tentative Tract Map No. 6535 and Planned Development Permit No. PDP2025-01 to facilitate development of a l3-lot single-family residential subdivision and stormwater basin on approximately 2.45 acres located at 199 N Street (APNs 007-050- 1 5 and 007-050- I 6); and WHEREAS' the subject property is designated High Density Residential under the Firebaugh General Plan and is zoned R-3 (Multi-Family Residential); and
WHEREAS' Planned Development Permit No. PDP2025-01 is requested to allow deviations from certain development standards of the underlying zoning district in order to establish site-specific development standards for the proposed residential subdivision; and
WHEREAS, on April 13, 2026, the Planning Commission held a duly noticed public hearing and adopted a resolution recommending approval of Vesting Tentative Tract Map No. 6535 and Planned Development Permit No. PDP2025-01; and
WHEREAS, the City Council held a duly noticed public hearing to consider the proposed project and received all oral and written testimony submitted regarding the application; and WHEREAS, notice of the public hearing was provided in accordance with applicable provisions of State law and the Firebaugh Municipal Code, including noticing requirements applicable to zoning-related actions; and WHEREAS, the City Council has reviewed and considered the staff report, project plans, environmental determination, public testimony, and the entire administrative record.

NOW, THEREFORE, THE CITY COTINCIL OF THE CITY OF FIREBAUGH DOES ORDAIN AS FOLLOWS:

Section 1. Findings
The City Council hereby finds as follows:

A. California Environmental Quality Act
The proposed project is categorically exempt from the California Environmental Quality Act pursuant to CEQA Guidelines Section 15332 (Infill Development Projects) because the project site is less than five acres in size, is substantially sunounded by urban uses, is consistent with the applicable General Plan and zoning designation, and can be adequately served by all required utilities and public services, and approval will not result in significant effects relating to traffic, noise, air quality, or water quality.

B. Planned Development Permit Findings
Pursuant to Section 25-39.8 of the Firebaugh Municipal Code, the City Council finds:

1. That the area proposed to be so zoned is generally suitable for the proposed project but for reasons affecting public health, safety, comfort, general welfare and orderly community growth or to promote innovative development that responds to community needs, it is appropriate to classifu such area within the planned development district, subject to a development plan provided for in this $ 25-39.

2. That the proposed project authorized by the planned development zone will provide benefits and safeguards equal to, or greater than those that would be provided by the regulations applicable to the underlying zone district, with respect to public health, safety, comfort and general welfare and orderly physical growth and development of the City.

Page I of2
3 . All owners of the property within the proposed planned development zone have consented in writing to the adoption of the district and development plan.

Section 2. Approval of Planned Development Permit No. 2025-01 Planned Development Permit No. PDP2025-01 is hereby approved for the property located at 199 N Street (APNs 007-050-15 and 007-050-16), subject to the conditions of approval attached hereto as Exhibit "A" and incorporated herein by this reference.

Section 3. Approved Development Standards
The Planned Development Permit establishes the following site-specific development standards for the subject property:
l. Front yard I garage setback: nineteen (19) feet minimum.

2. Side yard setbacks: each lot shall provide a minimum combined total of eight (8) feet of side yard setbacks, consisting ofno less than three (3) feet on one side and five (5) feet on the opposite side.

3. Rear yard setback: six (6) feet minimum.

4. Minimum lot depth: seventy-seven (77) feet.

5. Minimum lot width: forty (a0) feet for interior lots and twenty-two (22) feet for cul-de-sac lots.

6. Minimum lot area: three thousand four hundred (3,400) square feet.

7. Distance between driveways shall be as approved by the City Engineer.

All other development standards not specifically modified by this Ordinance shall remain subject to the requirements of the underlying R-3 zoning district and applicable provisions of the Firebaugh Municipal Code.

SECTION 4. Severabilitv
If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereofirrespective ofthe fact that any one or more portions may be declared invalid or unconstitutional.

SECTION 5. Effective Date
This Ordinance shall take effect and be in force thirly (30) days after its adoption.

SECTION 6. Publication
Following adoption of this Ordinance, the City Clerk shall certif,i to the passage and adoption of this Ordinance and shall cause the same to be published or posted in the manner required by law.

INTRODUCED and the first reading waived this 4th day of May,2026.

PASSED AND ADOPTED this
-
day of May, 2026,by the following vote
AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ATTEST:

Freddy Yaldez, Mayor Rita Lozano, Deputy City Clerk
ATTEST:

I hereby certi8/ that the foregoing ordinance was regularly introduced and the first reading waived at a regular meeting of the City Council of the City of Firebaugh held on the 4th day of May,2026.

Rita Lozano, Deputy City Clerk, City of Firebaugh
Page2 of2
Exhibit A
Conditions of Approval
PLANNING:
l. The project shall be developed in substantial conformance with Vesting Tentative Tract Map No. 6535, pianned Development Permit No. PDP2025-01, and all plans and materials submitted with the application, e*"epf as modified by these conditions of approval, and as shown in Exhibit B-l (VTSM 6535) and Exhibit B-2 (Standard Elevation).

2. Approval ofthis project shall notwaive compliance with any applicable provisions ofthe Firebaugh Municipal Code, Subdivision Ordinance, or State law unless specifically modified by the approved Planned DeveloPment Permit.

3. The planned Development Permit (PDP2025-01) establishes the following site-specific development standards:
a. Front yardlGarage setback: l9-feet minimum
b. Interior/Exterioiside yard setback: Each lot shall provide a minimum total of eight (8) feet ofside yard setbacks, consisting ofno less than three (3) feet on one side and five (5) feet on the oPPosite side.
c. Rear yard setback: 6-feet minimum
d. Lot dePth: 77-feet minimum
e. Lot width: Interior 40-feet minimum; Cul-de-sac 22-feet minimum f. Lot area:3,400 square feet minimum
g. Distance between driveways: as approved by the City Engineer.

An/future modifications to the approved development standards shall require review and approval by the City in accordance with the Firebaugh Municipal Code.

4. All development standards not specifically modified by the Planned Development Permit shall remain subject to the requirements of the underlying R-3 zoning district.

5. One (l), 5-gallon tree per lot is required within the front setback at least 5-feet from the property line.

6. A minimum six (6)-foot tall wall will be required for all lots adjacent to State Route 33 (at the rear of lots 3 through 8 and on the side of lot 9). The wall is required to match the development north of the site at Highway 33 and Lyon Avenue.

7. The proposed basin as shown on Exhibit B shall be fully fenced and screened with privacy slats.

8. The Applicant shall defend, indemniff, and hold harmless the City of Firebaugh and its agents, officeri, and employees from any claim, action, or proceeding against the City arising out of the approval of this Project.
g. The Tentative Subdivision Map shall comply with all applicable provisions of the Califomia subdivision Map Act and the city of Firebaugh Subdivision ordinance.

10. prior to recordation of the Final Map, the Applicant shall satisff all conditions of approval and obtain all required approvals from the City Engineer and other applicable agencies' I l. The Final Map shall be in substantial conformance with the approved Tentative Subdivision Map.

12. All lots shall be developed for single-family residential use consistent with the approved project.

13. All on-site improvements, including landscaping, fencing, lighting, and common areas, shall be installed priorlo occupancy of the units or as otherwise approved by the City Planner.

14. Any proposed signage shail comply with the City of Firebaugh Sign Ordinance and shall require separate review and apProval.

15. Exterior lighting shall be designed to minimize off-site glare and shall be subject to review and approval by the CitY.

16. The project shall be developed in accordance with the Habitat for Humanity program as presented to the City through the provided affordability justification included as Exhibit C. Any substantial deviation from the propbsed housing program shall be subject to review and approval by the City Planner.

17. The approval of Vesting Tentative Tract Map No. 6535 shall expire in accordance with the provisions of the California Subdivision Map Act unless an extension is granted.

18. Street lights on SR 33 shall be a decorative antique style as approved by the City.Planner and City Engineei (similar to those established with the SR 33 Downtown Firebaugh Beautification Project)'

19. The Planned Development Permit shall remain valid concurrently with the Tentative Subdivision Map unless otherwise specified by the Firebaugh Municipal Code.

20. Comply with comments provided by Caltrans in the memo dated 411126 and attached as Exhibit D.

21. Comply with comments provided by PGE in the memo dated l2l4l25 and attached as Exhibit E.

FIRE DEPARTIVIENT:
l. Provide two fire hydrants: one at the end ofthe cul-de-sac and one at the entrance.

Z. provide privacy slats around all proposed chain tink fencing around basin. Fencing shall provide a vehicular access gate for maintenance and emergency response' ENGINEERING:

Tentative Subdivision Map - Review Comments and Corrections The latest Tentative Tract Map routed for comments on March 6,2026, needs to address the following review items prior to approvaiby the City Engineer for technical correctness. The review was limited to surveying information inO *appitrg requirements only. This is not an all-inclusive list for map corrections or missing items that are required by the City of Firebaugh. l. Show the highest numbered lot circled.

2. Show and properly identiff Center Line Monuments on the map at all locations required by the City standards.

3. Revise the map to show the proposed Outlots B and C dedicated to Caltrans for Pedestrian Easement purposes. Revised the Note #12 accordingly '

4. Show the missing line work for the sidewalk on Street Cross Section A.

5. Add a detail for i proposed wedge curb driveway approach. Add a new Note (#13) to read "Wedge curb approach shall be provided at all subdivision driveways"'

6. Revise the Note #11 to read "To be dedicated in fee to the City of Firebaugh for storm basin purposes and the maintenance thereof. Outlot 'A' : 10,405 SF".

7. Revise the legend description for the proposed street dedication to read "Public street In-Fee Interest now offered for dedication for street and public utility purposes".

8. Label the sewer main on SR 33 as existing and with the correct pipe size. The map shows this line labeled as proposed.

9. Correct the street dimension from 12'to 17' for the SR 33 right of way width on Sheet 2.

10. Label the drainage direction for storm runoffon SR 33.

I l. Revise the map to show all other applicable requirements under the Tentative Subdivision Map - Conditions of Approval below.

Tentative Subdivision Map - Conditions of Approval
General

12. Allminimum conditions of subdivision approval in the City of Firebaugh Subdivision Ordinance are included by reference.

13. The subdivision map shall comply with all provisions of the Subdivision Map Act.

14. Approval of the Tentative Map is subject to all required California Environmental Quality Act studies and corresponding mitigation measures as determined by the City Planner.

15. The subdivision ingress/egress is subject to the approval of the City of Firebaugh Fire Department for fire protection and emergency services.

16. The non-standard subdivision layout improvements including, but not limited to, setbacks, lot depth and width, driveway approaches, etc., are subject to the approval of a Planed Unit Development (PUD) by the Firebaugh City Council.

17. Prior to approval of the Final Map and recording thereof, the Subdivider shall:
a. Construct all public improvements or provide the required surety for the construction thereof for acceptance by the City Council'
b. Provide all necessary dedications for right of ways and easements to the City of Firebaugh, public utility companies' and other affected agencies. c. The Subdivider shall dedicate the storm basin and associated offsite storm drain lines to the City of Firebaugh for public use. Reconvey any related easements to the City of Firebaugh.

18. Prior to approval of the Final Map, improvement plans for streets, utilities, drainage facilities, survey monuments, grading, erosion control, and other required improvements shall be submitted for the City Engineer's approval.

19. Public improvements shall conform to the latest edition of the City of Firebaugh Improvement Standards except as permitted by any zoning and land use approvals for this project and any modifications thereto approved by the City Engineer. The work shall comply with all applicable State, Federal, and local laws and regulations.

20. A soils report prepared by a Califomia registered geotechnical engineer shall be submitted to the City Engineer as part of the improvement plans. The soils report shall include recommendations for the structural sections for streets, excavation, compaction, clearing, and grubbing requirements.

21. Prior to approval of the improvement plans, Subdivider shall prepare a Storm Water Pollution Prevention Plan (SWPPP) for construction activities pursuant to the California Water Resources Control Board Order No.2022-0057-DWQ, NPDES No. CAS000002. Prepare an Erosion Control plan as part of the improvement plans for storm water and construction BMPs. Applicant shall provide a WDID number prior to approval of the improvement plans'

22. prior to approval of the improvement plans, Subdivider shall prepare a pre-project water balance calculation for stormwater runoff pursuant to the California Water Resources Control Board Order No. 2022-0057-DWQ, NPDES No. CAS000002 for compliance with Post-Construction Standards for non-MS4 Phase I and II agencies.

23. Prior to approval of the improvement plans, Subdivider shall prepare a Dust Control Plan (DCP) and file the DCP with the San Joaquin Valley Air Pollution Control District for approval of construction activities for the project ifrequired'

24. Prior to the issuance of any grading and encroachment permits, Subdivider shall pay the permit fee, plan check and inspection fees, and furnish improvement securities pursuant to the City's improvement standards, municipal code, ordinances, and California Subdivision Map Act.

25. Prior to the issuance of a building permit, Subdivider shall pay all development impact fees as specified and pursuant to the City's municipal code, ordinances, and resolutions. The fee aisessment shall include all applicable fees for Public Facilities, Police, Fire Protection, Streets, Water, Sewer, Storm Drainage and Parks. Fees shall be paid at the time of the issuance of each permit.

26. Theproposed parcels shall be annexed to the Landscape and Lighting Maintenance District and any other applicable assessment districts for the City of Firebaugh.

27. Provide utility services to each lot including electric power, gas, telephone, and cable television.

Construct all proposed utilities underground within the street rights of way or public utility easement.

28. Remove all utility poles along the street frontage of proposed subdivision and underground all overhead lines including electrical, communication, and cable tv. Conform to the utility company requirements for joint trench, riser poles, and junction boxes/vaults.

29. Subdivider shall comply with all flood hazard requirements for all newly created lots pursuant to the City of Firebaugh Floodplain Management Regulations'

30. The location and installation of mailboxes shall be approved by the US Postmaster and the City of Firebaugh.

31. The names for the subdivision streets are subject to approval by the City of Firebaugh'

32. Subdivider shall refer the project to Caltrans and address any utility connections, street improvements and dedication requirements along State Route 33 (SR 33) as follows:
a. Any street frontage improvements required by Caltrans (or the City of Firebaugh) within their rightof-way shall conform to Caltrans Standards and shall be reviewed and approved by Caltrans and the City of Firebaugh'
b. Any wet utility connections within the Caltrans right-of-way shall conform to City Standards and shall be reviewed and approved by Caltrans and the Cify of Firebaugh.

Construction of dry utilities shall be reviewed and approved by Caltrans and the respective utilitY comPanies.
c. Ingress and egres improvements for the proposed subdivision shall be reviewed and approved by Caltrans and the City of Firebaugh. Subdivision access requirements could include, but not be limited, to deceleration lanes, left tum movements, bike lanes, etc.

Applicant shall conduct a traffic study as applicable'
d. Applicant shall dedicate street right of way or easement for SR33 for project improvements or future roadway expansion as required by Caltrans.
e. An encroachment peimit shall be obtained from Caltrans for all work within their right of way.
f. Th; Applicant shall provide the City of Firebaugh with copies of all plans submitted to Caltrani and a copy of the approved Caltrans encroachment permit and any maintenance agreements.

33. The existing and proposed rights of way and easements shown on the Tentative Map shall be preliminary until the Final Map is reviewed and approved by the City Engineer'

34. Subdivider shall coordinate and obtain all required approvals from any stakeholder agencies affected by the work.

Subdivision Public ImProvements
Streets

35. Dedicate right of way and public utility easement for all new subdivision streets and construct street imprivements as shown on the Tentative Map and pursuant to Local street standards for the City of Firebaugh or as approved by the City Engineer. Roadway improvements shall include, buinot be limited to, pavement section, curb, gutter, sidewalk, curb ramps, driveways, cul-desacs, street lighting, landscaping, survey monuments, signage, and striping and shall conform to the City's Improvement Standards.

36. Provide a restrictive easement along SR 33 and Street "H" as shown on the Tentative Map and as approved by the CitY Engineer.

37. Construct street cul-de-sac to the dimensions and curve lines as required per the City's Improvement Standards.

38. Construct wedge curb driveway approaches to meet ADA standards and as approved by the City Engineer.

39. Construct standard raised curbs at all subdivision streets and SR 33 street widening.

40. Provide street lights on SR 33 as shown on the Tentative Map and as approved Caltrans and the City of Firebaugh.

41. provide a 10-ft sidewalk on SR 33 to extend the length of the subdivision property line and as approved by Caltrans and the City of Firebaugh. Construct the SR 33 sidewalks within dedicated street right of waYs or easements.

42. Subdivider shall construct a split-face CMU block wall along the street frontage of SR 33 to the extend the length of the subdivision property line.

43. Provide Center Line Monuments for all street intersections and locations as required by the City of Firebaugh Improvement Standards and Sections 8771(a-f) of the Business and Professions Code of California.

Water System

44. Construct water mains, fire hydrants, blowoffs, sampling stations, and lateral connections as necessary to serve each lot.

45. Water services shall be sized to meet domestic and fire protection demands and shall include shutoff valves, corporation stops, and water meters. Subdivider shall incorporate water recirculation for residential sprinkler system at the water service or onsite plumbing and applicable.

46. Construct minimum 8-inch water mains on all new subdivision streets and looped as needed to support the proposed subdivision and approved by the City Engineer. Pip sizes greater than the minimum shall be determined from hydraulic calculations and/or modeling studies, consistent with the existing grid network, or as recommended from the Water Master Plan.

47. Connect to existing water main on SR 33 as shown on the Tentative Map and pursuant to the City's Improvement Standards and as approved by Caltrans and the City of Firebaugh.

48. Provide Fire hydrants as required by the Firebaugh Fire Department.

Sewer System

49. Construct sewer lines, lift stations, manholes, and lateral connections as necessary to serve each lot. Convey sanitary wastewater via a gravity flow system unless a lift stion is required at points of connection due to topography restrictions.

50. Lateral connections shall include cleanouts and other required components per the City's Improvement Standards.

51. Construct minimum 8-inch sewer mains on all new subdivision streets unless approved otherwise by the City Engineer. Pipe sizes greater than the maximum shall be determined from hydraulic calculations and/or modeling studies, consistent with the existing network grid, or as recommended from the Sewer Master Plan.

52. Connect to existing sewer main on SR 33 as shown on the Tentative Map and pursuant to the City's Improvement Standards and as approved by Caltrans and the City of Firebaugh' Subdivider shall upgrade the existing Del Rio Pump Station #1 or the existing 6" gravity main on SR 33 to handle the additional sewer flows from the development or shall demonstrate these facilities have adequate capacity to handle the existing plus project flows.

53. The sewer flows from the proposed subdivision would be conveyed by the City's existing Del Rio Pump Station #2 to the City's Wastewater Treatment Facility. Subdivider shall upgrade the existing Station #2 or the existing 4" force main from Cordel Avenue to Valle DePaz Avenue to handle the additional sewer flows from the development or shall demonstrate these facilities have adequate capacity to handle the existing plus project flows.

Storm Drainage

54. Construct storm drain lines, manholes, drain inlets, catch basins, detention basins, outfalls and lift stations as necessary for collecting and conveying the storm runofffor the subdivision.

55. Construct storm sewers on new subdivision streets as determined from hydraulic calculations and/or modeling studies, consistent with the existing network grid, or as recommended from the Storm Drain Master Plan.

56. All runoff from new subdivision streets and the SR 33 pavement widening shall be contained with the public right of ways or easements and conveyed to the proposed storm basin.

57. Design and construct the proposed storm basin per the City's Improvement Standards, Soils Investigation and as approved by the City Engineer. Basin shall be sized to handle the storm runoff from the proposed subdivision, the existing San Joaquin Villas Subdivision and the SR 33 pavement widening. Basin shall be emptied as required by the City standards.

58. Provide access improvements for the storm basin including a curb cut driveway, gate and lock, pursuant to the City's Improvement Standards and as required by the City Engineer.

59. Construct a perimeter chain-link fence with privacy slats for the storm basin parcel. >9
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for Humanity'
Habitat for Humanity Greater Fresno Area (HFHGFA) is an ecumenica[ Christian organization dedicated to etiminating substandard housing by increasing access to homeownership opportunities for traditionatty marginalized residents of the community. Founded in 1985, HFHGFA has a 39 year history of buitding homes within Fresno County al,ongside homebuyers and interested communityvotunteers. Homes are sotd to any quatified community member who demonstrates a need, abitity to pay an affordabte mortgage, and is witting to partner in the construction of their home.

White the current zoning code requires 20 units to the acre and the proposed subdivision is at 5.3 units per acre, this project wilt uniquely meet an important community need because att of the housing units will. be sotd to low-income famities ranging between 30 - 80 percent of the Area Median Income. Habitat is abte to make these units affordabte by offering downpayment assistance for buyers that are witting to buitd their own home atongside trained construction staff. Other forms of downpayment assistance are atso avaitabte through Habitat's programming based on buyer needs. As a non-profit affordabte housing devetoper, Habitat Greater Fresno Area is atso etigibte to appty for grants that are abte to aid in making the units affordabte. Finatl,y, these additionat affordabte housing ownership units witt contribute to the City of Firebaugh's Housing Etement targets and have a minimum of a 30 year affordabitity covenant that witt attow the city to retain the units as affordabte ownership opportunities for the community.

Arhtey Hedemann
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Habitat for Humanity Greater Fresno Area
4991 E. McKlnteyAve. $te. 123 | Fresno, CA 93727
M: {559} 237-4102 | D: (s5g} 578-2084
habitarfresno.org I Donate I Votunteer

CALI FORNIA SIATE TRANSPORTATION AGENCY GAVIN NEWSOM, GOVERNOR Cqlifornio Deportment of Tro nsportotion
DISIRICT 6 OFFICE
1352 WEST OLTVE AVENUE I P.O. BOX 12616 | FRESNO, CA 93778-2616 (ssel 981-7284 | FAX (s59) 488-41 95 | TTY 7l I
www.dot.co.qov
&tlbutts"
April I ,2026
FRE-33-71 .198
, City of Firebough
Vesting Tentotive Troct Mop 5535 ond Plonned Unit Development Revised Tentotive Troct Mop
GTS # : httos://ld-iqr-ots.d ot.co.oov/district/6/reoort/38220#5563 l

SENI YIA EMAIL
Mx. Kelsey George, Principol Plonner
City of Firebough
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,l 33 "P" St.

Firebough, CA93622
[email protected]
Deor Mx. George:

Coltrons hos completed the review of the revised Tentotive Troct Mop for Vesting Tentotive Troct Mop 6535 ond Plonned Unit Development for the City of Firebough, proposing the development of l3 single-fomily residentiol units. The project site is locoted ol 199 N Street (Stote Route (SR) 33), in Firebough, CA.

The mission of Coltrons is to provide o sofe ond relioble tronsportotion network thot seryes oll people ond respects the environment. The Locol Development Review (LDR) process reviews lond use projects ond plons through the lens of our mission ond stote plonning priorities of infill, conservofion, ond trovel-efficient development. To ensure o sqfe qnd efficient tronsporioiion system, we encouroge eorly consuliotion ond coordinotion with locoljurisdictions ond project proponents on oll development projects thot utilize the multimodol tronsportotion network.

Coltrons provides the following commenfs consistent with the Stote's smort mobility gools thot support o vibront economy ond sustcrinoble communities:
l. Use Coltrons 2025 Stondord Plons A88A ond A88B for curb romps within Stote rightof-woy. Use Stondord Plon A87A for curb ond gutter.

2. Show locotion ond loyout of the existing drivewoy on the opposite side of SR 33, on plon sheets.

3. Show existing striping (centerline, bike lones, edge lines, etc.) on both sides of the development's frontoge ond ihe motch locotions of the proposed povement "Provide o sofe ond relioble ironsportotion network ihot serves oll people ond respecls the environmeni." Mx. Kelsey George - VTTM 5535 ond PUD- Revised TTM
April I ,2026
Poge 2
morkings.

4. Street H limit line should be ploced in odvonce of the unmorked crosswolk oreo.

5. Use minimum lone width ol 12 feet perColtrons Highwoy Design Monuol (HDM) lndex 30.l.1.

6. Remove the proposed two-lone seciion of northbound SR 33 with crosshotch morkings. The width for o second northbound lone is intended for future use ond should not be implemented of this time to mointoin consistency with existing operotions.

7. For the left-turn chonnelizotion, the design should be consistent with Coltrons HDM guidonce, including o 200-foot lone ond o I2O-foot boy toper. For opprooch topers, o design speed of 40 mph (reduced l0 mph from posted speed) moy be oppropriote. Bosed on HDM Figures 405.2A, B, ond C, the opprooch toper length is colculoted os L=WV"/60 (12*(40)2/60), resulting in opproximotely 320 feet.

8. Show on plon sheets updoted existing ond proposed signs. g. Povement siructurol section in stote right-of-woy would need to be opproved by Coltrons D6 Office of Moteriols.

I O. lt oppeors lighting poles moy be within the cleor recovery zone within Stote rightof-woy. lf confirmed, Coltrons HDM lndex 82.2for opprovol of nonstondord design moy need to be followed. A Design Stondord Decision Document (DSDD) moy be required to document engineering decisions.

I l. Coltrons hos completed its Locol Developmeni Review (LDR) comments for this project. The opplicont moy now proceed to the Encroochment Permit stoge for oll proposed work within Stote right of woy. Pleose coordinote directly with the Coltrons District 5 Encroochment Permits Office to initiote the permit process ond to confirm the required moteriols for on Encroochment Permit Applicotion Pockoge (EPAP). A pre submittql meeting with the Permits Office is strongly recommended.

12. For Encroochment Permit questions or to schedule o pre-submiitol meeting, pleose contoct:

Coltrons District 6 - Encroochment Permits Office
Phone: (559) 488-4058
Address: .l352 W. Olive Avenue, Fresno, CA93728
lf you hove ony other questions, pleose coll or emoil: Keyomi Jones, Associote Tronsportotion Plqnner of (559) 981 -7 284 or [email protected].

Sincerely,
Mr Podillo, Bronch Chief,
Locol Development Review
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Pacific Gas and
Electric Company'
Pacific Gas and Electric ComPanY
Morgan Bunone
Land Management
300 Lakeside Dr.

Oakland, CA94612
December 4,2025
Kelsey George
CCB.Homes
330 James Way, Suite 270
Pismo Beach, CA
Re: Vesting Tentative Subdivision Map Tract No. 6535
195 & 199 N Street, Firebaugh, CA
Dear Kelsey:

Thank you for providing PG&E the opportunity to review the VTSM for Tract No. 6535 dated 8t2s/2025.

PG&E recommends the following language be expressly stated in the offer of dedication for Public Utility Easements ("PUEs"):

I/We the undersigned, as Owner(s) of the land shown hereon, do hereby state that I/we am/are the only person(s) whose consent is necessary to pass clear title to said land and do hereby consent to the preparation and recordation ofthis map and offerfor dedication and do hereby dedicate for public uses the Public Utility Easements (PUEi shown on this map for public utility purposes including electric, gas, communicationfacilities and all other public utility purposes; together with any and all appurtenances thereto, including the right from time to time to trim and to cut down and clear oway or otherwise control any trees or brush. The PUEs hereby offered for dedication are to be kept open and free of buildings, or any other structures of any kind'
The final map must contain such a statement setting forth the offer of dedication and such offer must be u...pt.d by the county or municipality. The PUEs must also be of sufficient width, acceptable to PG&E, for PG&E to occupy with its distribution and service facilities. If the county or municipality has declined the offer of dedication, the applicant may be required to grant or secure easements in gross satisfactory to PG&E' Our review indicates the design and/improvements identified on the map(s) may interfere with pG&E's existing facilities and land rights. No buildings, structures or trees are permitted along the overhead electric pole line along N St. PG&E requests 12ft clearance on either side of the pole line. Information about compatible vegetation can be found here:
https://www.pge.com/en/outages-and-safety/safety/veeetation-management.html For any requests to modif, or relocate PG&E existing facilities, or to request gas and/or electric service, please submit an application to PG&E's Service Planning department through PG&E's Your Project Portal: Sien In (yourprojects-pee.com).
t-; Pacitic Gas and
Electric Company'
As a reminder, before any digging or excavation occurs, please contact Underground Service Alert (USA) by dialing 811 a minimum of two (2) working days prior to commencing any work.

This free and independent service will ensure that all existing underground utilities are identified and marked on-site.

Please note, this is our preliminary review and PG&E may provide additional comments in the future as the project progresses or if additional information is provided. If there are subsequent modificationi made io your design, we ask that the map be resubmitted for review to the email address listed below.

If you have any questions regarding this response, please contact me at (925) 459-4787 ot [email protected].

Sincerely,
9619*,, @r,r",ru
Morgan Bunone
Land Management
PG&E Gas and Electric Facilities Page2
RESOLUTION NO. 26-20

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FIREBAUGH APPROVING VESTING TENTATIVE TRACT MAP NO. 6535 FOR A 13.LOT SINGLE-FAMILY RESIDENTIAL SUBDIVISION AND STORMWATER BASIN LOCATED AT 199 N STREET (APNs 007-0s0-15 AND 007-050-16)
WHEREAS, sn application was submitted by Habitat for Humanity Fresno, Inc. ("Applicant") requesting approval of Vesting Tentative Tract Map No. 6535 and Planned Development Permit No.

PDP2025-01 to subdivide approximately 2.45 acres into a 13-lot single-family residential subdivision and stormwater basin located at 199 N Street (APNs 007-050-15 and 007-050-16); and WHEREAS, the project site is designated High Density Residential in the Firebaugh General Plan and is zoned R-3 (Multi-Family Residential); and
WHEREAS, on April 13, 2026, the Planning Commission held a duly noticed public hearing and adopted a resolution recommending approval of Vesting Tentative Tract Map No. 6535 and Planned Development Permit No. PDP2025-01; and
WHEREAS, the City Council held a duly noticed public hearing on May 4,2026, at which time all interested persons were given the opportunity to be heard and present evidence; and WHEREAS, notice of the public hearing was provided in accordance with applicable provisions of State law and the Firebaugh Municipal Code; and
WHEREAS' the City Council has considered the staff report, project plans, environmental determination, and all oral and written testimony presented regarding the proposed project.

NOW, THEREFORE' BE IT RESOLVED by the City Council of the City of Firebaugh as follows A. General Findings

1. The proposed project is consistent with the Firebaugh General Plan and applicable provisions of the Firebaugh Municipal Code.

2. The project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15332 (Infill Development Projects), as the project site is less than five acres, is consistent with applicable General Plan and zoning designations, is located within city limits and substantially surrounded by urban uses, and will not result in significant impacts related to traffic, noise, air quality, or water quality.

3. The proposed project will not have a significant adverse impact on the public health, safety, or general welfare.

B. Subdivision Map Findings

1. Vesting Tentative Tract Map No. 6535 is consistent with the California Subdivision Map Act and the City of Firebaugh Subdivision Ordinance.

2. The design and improvement of the proposed subdivision are consistent with applicable General Plan policies and municipal standards.

Page I of2
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NOW' THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of Firebaugh hereby approves Vesting Tentative Tract Map No. 6535, subject to the conditions of approval attached hereto as Exhibit "A".

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ATTEST:

Freddy Yaldez. Mayor Rita Lozano, Deputy City Clerk
ATTEST:

I, hereby certifi that the forgoing resolution was regularly introduced, passed and adopted at a regular meeting ofthe City Council ofthe City ofFirebaugh this 4th day of May 2026.

Rita Lozano, Deputy City Clerk
City of Firebaugh
Page2 of2
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. PLANNED DEVELOPMENT EXHIBIT 'v 195 & 199 N STREET, HREBAUGH CA 93622 K9?9
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MEMORANDUM
TO:

F'ROM:

RE:

Firebaugh City Council
Court Appointed Receiver, Kevin Singer
Element 7 Firebaugh LLC - Renewal of Development Agreement; Changes to Taxation of Cannabis Businesses; and Guidance for Transfer to New Owner DATE: May 4,2026
Summary
Element 7 Firebaugh LLC is the city of Firebaugh's only licensed cannabis operator. Element 7 Firebaugh LLC is licensed to conduct retail sales, distribution, and manufacturing operations. All licensed cannabis activities are conducte d at l2l 0 I 2th St., Firebaugh, C A 93 622.

As is set forth below, the assets of Element 7 Firebaugh LLC are being sold, through a Court-Appointed Receivership, to NUG, Inc. The sale is subject to the City of Firebaugh's approval.

The Court-Appointed Receiver and NUG, Inc. would like the City Council to consider amending Firebaugh Municipal Code Section $25-41.13.6(p)(3) as pertaining to the City's revenue raising fee and renewing and amending the current Development Agreement.

The Court-Appointed Receiver and NUG, Inc. are also requesting the City Council's guidance as to what information the City Council would like NUG, Inc. to present to allow the City Council to transfer the Conditional Use Permit to NUG, Inc.

Action Items
l. Amend Firebaugh Municipal Code Section $25-41.13.6(p)(3) to allow for revenue sharing to be based upon actual gross receipts in lieu of the size of the facility;

2. Renew DevelopmentAgreement; and

3. Provide the Receiver and NUG, Inc. guidance on what information the City Council will need to approve NUG, Inc. as the recipient of a cannabis regulatory permit from the City of Firebaugh.

Background
Receivership
On or aboutApril 2,2025, in the matter of C And H Holdings, a Califurnia corporation v. Element 7 CA, LLC, a California timited tiability company, et. al. lLosAngeles County Superior Court Case No. 24SMCV05678I the Honorable H. Jay Ford III appointed Kevin Singer of Receivership Specialists as a Receiver and ordered [ExhibitA], in part (emphasis added):

Memorandum - Page 1 of 9
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"Receivership Property," and "Collateral" as used herein, shall consist of the following:
(i) All assets obtained or owned by or in the possession of ElemerftT CA, LLC ("Element7"), as well as the following entities owned and managed by Element 7 (collectively referred to as the "Pledged Entities"):
l. Element 7 South San Francisco, LLC, a California limited liability company

2. E7 Rio Dell, LLC, a California limited liability company

3. Element 7 Maina,LLC, a California limited liability company

4. Element 7 Firebaugh LLC, a California limited liability company

5. Element 7 Crescent CiW,LLC, a California limited liability company

6. E7 Oakland LLC, aCalifornia limited liability company

7. Element 7 Suisun CiW,LLC, a California limited liability company

8. Element 7 ContraCosta, LLC, aCalifornia limited liability company

9. Element 7 SF3 LLC, a California limited liability company

10. E7 LA LLC, a California limited liability company

11. Element 7 Greenfield,LLC, a business organization, form unknown

12. RR Enterprises LA,LLC, a California limited liability company

13. Element 7 Oceanside,LLC, a California limited liability company On or about October 22,2025,the Honorable H. Jay Ford III approved the sale of the assets of Element 7 Firebaugh LLC to NUG,Inc. [Exhibit B].

History of Cannabis Regulation
Le galizat i on of Re cre at ional C annab i s
On Novemb er 8,2076 voters approved the legalization of non-medical cannabis for use by adults aged 2 I , with the passage of Propositi on 64, the Control, Regulate and Tax Adult Use of Marijuana Act ("AUMA"). In San Jose Proposition 64 passed in every City Council District. By November 14,2017, the Council had authorized registered medical cannabis collectives to extend their operations to include non-medical, adult-use cannabis activities, effective beginning January 1,2018 (when the State regulations would go into effect). Continuing to be at the forefront of legalization and social justice, the San Jose City Council has also adopted local regulations to allow for equity businesses.

State Law and Regulations
In June of 2017, SB94, the Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA") was passed by the legislature and signed into law by Governor Brown. MAUCRSA incorporated many of the provisions of AUMA. MAUCRSA and its implementing regulations went into effect on January 1,2018.

Cityb Cannabis Control Ordinance (Firebaugh Municipal Code $25-41.13) The City Council initially adopted Firebaugh's cannabis ordinance, Ordinance No. 18-02, in June 2018.

Thereafter, on or about July 2019, the City Council voted to revise the cannabis ordinance to allow for retail operations (dispensaries) and adopted Ordinance No. 19.03.

Initially, Ordinance No. 19.03 proposed a revenue raising fee of "seven dollars ($7.00; per square foot for the first 3,000 square feet, which shall be the minimum annual fee for all Commercial Cannabis Operations, and two dollars ($2.00) per square foot for the remaining space utilized in connection with each Commercial Cannabis Operation." See City CouncilAgenda dated July 1. 2019.

Page 2 of 9 ends

The revenue raising fee was increased to "twenty-five dollars ($25.00) per square foot for the first 3,000 square feet, which shall be the minimum annual fee for all Commercial Cannabis Operations, and ten dollars ($10.00) per square foot for the remaining space utilized in connection with each Commercial Cannabis Operation." See Citv Council dated Julv 15. 2019. The higher fee was adopted by Council Element 7 Firebaugh LLC Conditional Use Permit and Development Agreement On or about May 10, 2027, the Planning Commission approved the issuance of a Conditional Use Permit to Element 7 Firebaugh LLC and a Development Agreement. See Planning Commission Minutes dated May 10. 2021.

On or about December 13 ,2021 ,
the Planning Commission approved as revision to the Development Agreement.

See Planning Commission Minutes dated December 13" 2021r. The Development Agreement had an "Efflective Date" of November 70,2021and states, in relevant part:

IV. Fees. Developer shall pay to City the following fees specified in Firebaugh Municipal Code section 25 -42.13 .6(p):
a. Business License Fee.
b. Reeulatory License Fee.
c. Conditional Use Permit Fee.
d. Revenue Raising Fee. An annual fee of $25 per square foot for the first 3,000 square feet of building space for the commercial cannabis operation and $10 per square foot for any remaining space over and above the first 3,000 square feet. e. Distribution and Sale. Developer agrees to pay the City 10lo of gross receipts from the distribution of cannabis products and a separate lYo for the sale of cannabis products. This amount will be increased by an additi onal I%o for each year after the initial year.

XII. General Provisions.
&s&
o. Term. The term of thisAgreement ("Term") shall be for a period of three (3) years commencing on the Effective Date.

On or about December 18, 2023, the City Council agreed to waive the distribution fee set forth in the Development Agreement. See City Council Minutes dated December 1 8. 2023.

The current DevelopmentAgreement expired, by its own terms, on Novembet 10,2024, prior to the appointment of the Receiver. Operations have continued and the business is current on all payments to the City except for the Revenue Raising Fee due for Q4 2025 which will be paid upon renewal and amendment of the Development Agreement.
1 The Minutes attached to the December 13, 2021Minutes are the Planning Commission's Minutes dated November 10,2027. On November 10,2021the Planning Commission approved the Conditional Use Permit for a different business. Element 7's original Conditional Use Permit was approved on May 10,2021.

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Proposed Chanses
Amendmerrt of F ire b augh Munic ipal C o de Sec t i on f 2 5 - 4 I . I 3. 6 (p) (3.) p. Fees and taxes. All commercial cannabis operations in the City of Firebaugh shall pay applicable fees and taxes, which may include one or more of the following:

3. Revenue raising fee. An annual revenue raising fee ("revenue raising fee") shall be applied for the privilege of having the right to operate in the City and provided as a condition of the development agreement.
(a) Revenue raising fee finding. The City Council specifically finds that it is approving this Ordinance allowing commercial cannabis operations to operate in the City with the express understanding that the business will pay the revenue raising fee to the City as set forth herein, and that without the revenue raising fee, the City Council would not have adopted this Ordinance allowing commercial cannabis operations to operate in the City. By opening a commercial cannabis operation in the City, the premises owner, business owner, operator, and all responsible parties agree that, if the revenue raising fee is challenged by any one of them or a third party and set aside, the business must cease operation.
(b) Amount of fee and terms of payment. The revenue raising fee shall be a*annualfte efl a fee based upon the of the cannabis license holder's gross receipts and shall be set forth in the DevelopmentAgreementwiththecannabislicenseholder.
feot forthe remaining spaee utilized ineonneetion rvith eaeh eemmereial eannabis operatien' The square areas used exelusively for offiee spaee; empleyee break rooms; restrooms; and sterage spaee unrelated ien'
(c) Dispensary fees and taxes. Dispensaries permitted within the City of Firebaugh shall be subject to the annual business license fee; and a percentage-based annual regulatory permit fee$ase4en square footage as set forth in Subseetien p3(b) abeve; and a pereentage-based revenue-raising fee as set out in the development agreement for the commercial cannabis operation regulatory permit. (d) If mere than ene eem
@Therevenueraisingfeeshallbepayableinadvaneeinneiless-*an-quarterly installments;withthefirstquarterlypaymentdueprior+eissutwithin thirty (30) days after the close of the first quarter of operations. The firstprJ'ment shall not be prerate4 ll
quarterly payments shall be received by the City ffirc e€€upatl€y within thirty (30) days after the end ofthe quarter.
(ef) Alternative voter-approved tax. If the voters of the City approve a tax on commercial cannabis operations, the business owner shall pay that tax in lieu of the revenue raising fee, once the ity begins to collect the tax revenue.

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Development Agreement
IV. Fees. Developer shall pay to City the following fees specified in Firebaugh Municipal Code section 25 - 42.13 .6(P):
a. Business License Fee. Based upon Gross Receipts'
b. Regulatory License Fee. $0.00
c. Conditional Use Permit Fee. $1,765.
d. Revenue Raising Fee.
feet of butldtng sea
@ Developer agrees to pay the City @
four percent (4Yo) of gross receipts from ferthe
retail sales of cannabis products. This amsunt will be inereased b)'an additional 196, for eaeh @
XII. General Provisions.
&JJ
o. Term. The term of this Agreement ("Term") shall be for a period of three (3) years commencing on the Effective Date.

Analvsis
The City's cugent revenue raising fee based upon square footage is a model that is generally used for cultivation operations and not retail sales operations. Such a model deters physical expansion, creates inequity between small and large businesses, and fails to capitalize on productive businesses.

Transitioning to a percentage of gross sales model would help the City align its revenue with a business' actual performance. Also, transitioning to a percentage of gross sales model ensures a faitet distribution of the tax burden and fosters a more sustainable, resilient local economy. Lastly, transitioning to a percentage of gross sales will allow for the business to compete with similar businesses in neighboring cities have similar tax structures.

Revenue Raising Fee Based Upon Current Square Footage Model The City has calculated the revenue raising fee based upon a Corelogic property profile that lists the square footage of the propefi as3,764 fExhibit C].

Current Square Footage of Premises Under Control of Licensee 3,164 sq. feet x $25.00 foot for first 3,000 feet $75,000
x $10.00 per square foot for each additional square foot $ 1,640 Total Revenue Raising Fee $76,640
Quarterly Payment $19,160
The City's calculation does not exclude "driveways, sidewalks, landscaping,vacant unused space, areas used exclusively for offrce space, employee break rooms, restrooms, and storage space unrelated to the commercial

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cannabis operation (such as a janitorial closet)" as required by Firebaugh Municipal Code Section $25- a 1.1s.6(p)(s)(b).

The Receivership team has measured the rooms of the facility, after excluding the areas noted in Firebaugh Municipal Code Section $25-41.13.6(p)(3)(b),the taxable square footage is2,296.51 as follows:

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Excluded
Dimensions Square
Footage
1 Office Excluded 72'xll'5" 137.00
2 Office Excluded 7l'4" x1l'6" 130.33
J Reception Included 13'1" x 12'71' 168.99
4 Retail Showroom Included 76'2" x23'5" 378.57
5 Breakroom Excluded 6'8" x l8'2" 121.11
6 Bathroom Excluded 7'5" x6'7" 48.83
7 WIP room/closet Excluded 7'8" x 8'1 1" 68.36
8 Kitchen Included 34'xl9'9" 671.s0
9 Packaging room Included 1l'9" x24"7" 288.85
10 Distribution room Included 14'll x12'8" 188.94
11 Common area Included 8' x l8'5" 147.33
12 Warehouse Included lg'8" x23', 4s2.33

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TOTAL 2,802.14
Excluded (s0s.63)
Included 2,296.5t
Based upon the foregoing, the Revenue Raising Fee is $14,353.19 per quarter Current Square Footage of Premises Under Control of Licensee 2,296.51sq. feet x $25.00 per square foot for first 3,000 feet s57,412.75 x $10.00 per square foot for each additional square foot $o Total Revenue Raising Fee s57,412.75
Quarterly Payment $14,353.19
Revenue Raising Fee Based Upon Gross Retail Receipts
NUG, Inc. is proposing increasing the revenue raising fee from one percent (l%) to four percent (4%) of gross receipts. This rate is comparable to nearby cities as follows:

City Tax Rate Source
Madera 4% Resolution 22-10
Fresno 4% Resolution 2018-294
Mendota 2-4% Varies based upon Develonment A
Based upon historical gross receipts, increasing the tax rate to four percent (4%) would generate additional tax revenue as follows:

Quarter &
Year
Retail Gross
Receipts
Revenue Raising Fee
(t%)
Revenue Raising Fee
(4%)
Ql2023 $360,659.00 $3,606.59 $14,426.36
Q22023 $410,581.00 $4,105.81 $t6,423.24
Q3 2023 $369,403.00 $3,694.03 $14,776.12
Q4 2023 $432,675.27 $4,326.75 $17,307.01
TOTAL
Qr 2024 $375,219.98
$ .18
$3,752.20
73 $15,008.80
Q22024 $302,626.00 $3,026.26 $12,105.04
Q3 2024 $288,612.00 $2,886.12 $11,544.48
Q4 2024 $265,362.00 $2,653.62 $10,614.48
TOTAL
| 2025 s274,229.00
$12,318.20
$2,742.29

72.80 $10,969.16
Q22025 $249,540.00 92,495.40 $9,981.60
Q3 202s $131,492.00 $1,314.92 $5,259.68
Q4202s $158,881.00 $1,588.81 $6,355.24
TOTAL s8,141.42 $32,565.68
The revenue generated by an increase in the tax rate is similar to the current square footage-based rate.

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Transfer Application
The City Clerk has provided a copy of the competitive Cannabis Business Application that was approved by Council in September 201 8 to be utilized to solicit proposals for operators for a retail cannabis dispensary permit.

Element 7 Firebaugh LLC initially submitted this application and was selected to operate in the City. Now, NUG, Inc. is requesting a transfer of the regulatory permits issued to Element 7 Firebaugh LLC to NUG, Inc.

Balancing the City Council's right to approve the owners of a cannabis business with the cost of preparing and reviewing the type of application used for during the competitive application process, the Receiver and NUG, Inc. propose that NUG, Inc. will submit the following materials to the City Council to allow Council to determine whether it will approve a transfer of Element 7 Firebaugh LLC's permits to NUG, Inc. As the business is an ongoing concern that has been operating for several years at the location and as the business will not be relocated, all location-specific and start-up related requirements have been omitted.

1. Application. Complete, signed copy of the City of Firebaugh Commercial Cannabis Business Permit Application Form.

2. Background Apptication. i Complete, signed City of Firebaugh Cannabis Permit Employee/Owner Background Application for each of the Owners. If the Owner is an international applicant, please provide an ITIN or U.S.-issued Social Security Number or Driver's License.

3. Live Scan. Proof of Live Scan competition for each Owner.

4. Labor & Employment/Local Enterprise. The application should describe to what extent the business will adhere to heightened pay and benefits standards and practices, including recognition of the collective bargaining rights of employees. Specific practices that are subject to consideration include the following:
a. Providing compensation to and opportunities for continuing education and training of employees/staff (applications should provide proof of the business policy and regulations to employees);
b. Providing a "living wage" to facility staff and employees. Wage scale should be provided in writing for all levels of employment at the facility. "Living Wage" shall mean 150% of the minimum wage mandated by California or Federal law, whichever is greater.

5. Business Plan. The application should include the following in the Business Plan, with as much detail as possible:
a. Description of day-to-day operations. See Firebaugh Municipal Code Section 25-41 .13.6. b. How the business will conform to local and state law. See Firebaugh Municipal Code Ordinance No. 18-02, and SB 94 Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA).
c. How cannabis inventory will be tracked and monitored to prevent diversion. d. Enhanced Product Safety: The application should state how the business will ensure enhanced consumer safety as required by State or local law.

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Safety Plan. The application should include the following for each proposed location:
a. A detailed safety plan. This plan should describe the fire prevention, suppression, HVAC and alarm systems the facility will have in place. It should include an assessment of the facility's fire safety by a qualified fire prevention and suppression consultant. An appropriate plan will have considered all possible fire, hazardous material, and inhalation issues/threats and will have both written and physical mechanisms in place to deal with each specific situation.

Security Ptan. The application should include the following for each proposed location:
a. A detailed security plan. This plan should include a description and detailed schematic of the overall facility security. It should have details on operational security, including but not limited to general security policies for the facility, employee specific policies, training, sample written policies, transactional security, visitor security, 3rd party contractor security, and delivery security. In particular, applications should address ingress and egress access, perimeter security, product security (at all hours), internal security measures for access (area specific), types and locations of security systems (alarms and cameras), and security personnel to be employed. The security plan shall also include an assessment of site security by a qualified security consultant. Security plans will not be made public. b. A floor plan showing existing building conditions. If changes are proposed as part of the project, then a proposed floor plan should also be submitted. The floor plan(s) should be accurate, dimensioned and to-scale (minimum scale of l/4")'

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RESOLUTION NO. 26-22

A RESOLUTION OF'TIIE CITY COUNCIL OF'THE CITY OF FIREBAUGH, CALIFORNIA,

APPROVING EXTENSION OF DEVELOPMENT AGREEMENT BETWEEN THE CITY OF' FIREBAUGH AND ELEMENT 7 F'IREBAUGH LLC
WHEREAS, the Firebaugh City Council approved a Development Agreement with Element 7 Firebaugh LLC ("Developer") for the development of a retail commercial cannabis business, including manufacturing, distribution, and delivery at l2l0 l2tr' Street, Firebaugh, CA ("Development Agreement") effective November 10,2021 ; and
WHEREAS, The Development Agreement had a term of three (3) years, expiring on November 10, 2024 and;
WHEREAS, while there was no written extension of the Development Agreement, both parties have conducted themselves in line with the terms of the Development Agreement as stated and; WHEREAS, the City Council is aware that the assets of Developer are subject to a Court supervised receivership through which Kevin Singer (o'Receiver") has been appointed to manage the assets of Developer (Exhibit 1) and;
WHEREAS, the City Council is further aware that the operations of Developer are being managed by a third party, NUG Inc., a Nevada corporation registered to do business in California, by and through a CourtApproved Management Services Agreement executed with the Receiver (Exhibit 2) and; WHEREAS, the City Council is further aware that all assets of Developer have been sold to NUG Inc. by and through an Asset Purchase Agreement executed with the Receiver and approved by the Court (Exhibit 3) and;
WHEREAS, City Council acknowledges that as of the date of this Resolution, NUG Inc. has not completed all requirements to operate as a new operator as proscribed in the City of Firebaugh's Municipal Code but is permitted to operated pursuant to the Management Services Agreement and; WHEREAS, the City Council would like to formally acknowledge that the Development Agreement's Revenue Raising Fee is currently calculated based upon the square footage of the subject property at which the operations occur and that, instead, it is beneficial for the City to calculate the Revenue Raising Fee based upon a percentage ofthe Developer's actual revenue and;
WHEREAS, the City Council would like to formally acknowledge that the Development Agreement, as revised, (Exhibit 4) varies from the Municipal Code and will expire on December 31,2026 or the City Council approves transfer of the Developer's Regulatory Permit to Nug Inc.as proscribed in the Asset and Purchase Agreement, whichever occurs first and;
WHEREAS, the City Council directs Nug Inc. that, before the City Council can approve a transfer of the Regulatory Permit to Nug Inc., Nug Inc. must provide the City Council with the following:

1. Application. Complete, signed copy of the City of Firebaugh Commercial Cannabis Business Permit Application Form.

2. Background Application. Complete, signed City of Firebaugh Cannabis Permit Employee/Owner Background Application for each of the Owners. If the Owner is an international applicant, please provide an ITIN or U.S.-issued Social Security Number or Driver's License.

3. Live Scan. Proof of Live Scan competition for each Owner.

5. Business Plan. The application should include the following in the Business Plan, with as much detail as possible:
a. Description of day-to-day operations. See Firebaugh Municipal Code Section 25-41.13.6. b. How the business will conform to local and state law. See Firebaugh Municipal Code Ordinance No. 18-02, and SB 94 Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA).
c. How cannabis inventory will be tracked and monitored to prevent diversion. d. Enhanced Product Safety: The application should state how the business will ensure enhanced consumer safety as required by State or local law.

6. Safety Plan. The application should include the following for each proposed location:
a. A detailed safety plan. This plan should describe the fire prevention, suppression, HVAC and alarm systems the facility will have in place. It should include an assessment of the facility's fire safety by a qualified fire prevention and suppression consultant. An appropriate plan will have considered all possible fire, hazardous material, and inhalation issues/threats and will have both written and physical mechanisms in place to deal with each specific situation.

7. Security Plan. The application should include the following for each proposed location:
a. A detailed security plan. This plan should include a description and detailed schematic of the overall facility security. It should have details on operational security, including but not limited to general security policies for the facility, employee specific policies, training, sample written policies, transactional security, visitor security, 3rd pafi contractor security, and delivery security. In particular, applications should address ingress and egress access, perimeter security, product security (at all hours), internal security measures for access (area specific), types and locations of security systems (alarms and cameras), and security personnel to be employed. The security plan shall also include an assessment of site security by a qualified security consultant. Security plans will not be made public. b. A floor plan showing existing building conditions. If changes are proposed as part of the project, then a proposed floor plan should also be submitted. The floor plan(s) should be accurate, dimensioned and to-scale (minimum scale of l/4").

8. Community Benefits. The application should describe benefits that the CCB would provide to the local community, such as employment for local residents of the City, community contributions, or economic incentives to the City.
and;
WHEREAS, the City Council acknowledges that as of the date of this Resolution, the Revenue Raising Fee was improperly calculated as the Staff had calculated the square footage of the subject property to be 3,164 without deduction for excluded areas pursuant to Firebaugh Municipal Code Section $25- a 1.13.6(p)(3)(b), Staff has agreed that the actual square footage for the subject property for taxation is 2,296.51 square feet and, as a result, based upon the corrected square footage the annual Revenue Raising Fee is $57,412.75 or $14,353.19 per quarter and;
WHEREAS, a condition of this acknowledgement of extension of the Development Agreement is that all outstanding Revenue Raising Fees totaling $23,899.57 are to be paid to the City of Firebaugh as follows:
credit of $4,806.81 for Q2 2025 overpayment (the Receiver was billed and paid $19,160 when the actual amountduewas$14,353.19);paymentof $14,353.19forQ3 2025;andpaymentof $14,353.19forQ42025 as proscribed by Section IV(d) of the original Development Agreement and facilitated by the Receiver and Nug Inc.;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF F'IREBAUGH, CALIFORIIIAO AS F'OLLOWS:

The revised Development Agreement is acknowledged to be extended through December 3I,2026 or until new owner takes over operation of Element 7 Firebaugh LLC with full approval of the City Council as proscribed in the Asset and Purchase Agreement, whichever date occurs first.

PASSED, APPROVED AND ADOPTED at aregular meeting of the Firebaugh City Council, on the 4th day of May, 2026, by following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

APPROVED: ATTEST:

Freddy Yaldez, Mayor Rita Lozano, Deputy City Clerk
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28 BUCHALTER
A Professional Corporation
MICHAEL J. MUSE-FISHER (SBN: 253232)
POOYA E. SOHI (SBN: 241574)
AARON M. LEVINE (SBN: 299260)
1000 Wilshire Blvd. Ste 1500
Los Angeles, California 90017 -2457
Telephone: 2 I 3.891.0700
Email: [email protected]; [email protected]; alevine@buchalter. com
Attorneys for Plaintiff C and H Holdings,
A California Corporation
mr H Ull. S h&t , Erect lle OfiH r /6 h il of gol r
By T. Errr
CASE NO.24SMCVO5678
Assigned to Honorable H. Jay Ford III

JOINT STIPULATION TO ENTER

AMENDED ORDER GRANTING

PRELIMINARY INJUNCTION AND
APPOINTMENT OF RECEIVER;

PROPOSED ORDER
Hearing (OSC Re Objections Proposed
Receivership Order):

Date: April2,2025
Time: 9:30 a.m.

Dept. O
suF
s
FILE D
erior Gourt qf Crlifarnia
o unty of Lnr A,n ge ler
041028015
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neputy

SUPERIOR COURT OF THE STATE OF CALIFORNIA

SAN FRANCISCO COUNTY SUPERIOR COURT
C AND H HOLDINGS, a California corporation;
Plaintiff,
VS.

ELEMENT 7 CA,LLC, a California limited
liabilitycompany, ELEMENT 7 SOUTH SAN
FRANCISC O, LLC, a California limited liability
company, E7 RIO DELL, LLC, a California
limited liability company, ELEMENT 7
MARINA, LLC, a California limited liability
company, ELEMENT 7 FIREBAUGH LLC, a
California limited liability company,
ELEMENT 7 CRESCENT CITY LLC, A
California limited liability company,
E7 OAKLAND LLC, a California limited
liability company, ELEMENT 7 SUISUN CITY
LLC, a California limited liability company,
ELEMENT 7 CONTRA COSTA LLC, A
California limited liability company,
ELEMENT 7 SF3 LLC, a California limited
liability company, E7 LALLC, a California
limited liability company, ELEMENT 7
GREENFIELD LLC, a business organization,
form unknown, RR ENTERPRISES LA LLC, a
California limited liability company,
ELEMENT 7 OCEANSIDE LLC, a California
limited liability company, GH GROUP, INC., a
Delaware corporation, ROBERT DIVITO, an
individual, JOSH BLACK, an individual, and
DOES l-100,
Defendants.

BUcHALTER I
INJUNCTION AND APPOINTMENT OF RE,CEIVER; PROPOSED ORDER

JOINT STIPULATION TO ENTER AMENDED ORDER GRANTING PRELIMINARY I
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28 IT IS HEREBY STIPULATED by and between Plaintiff C and H Hotdings ("Plaintiff'), on the one hand and defendants Robert Divito; Josh Black, Element 7 CA, LLC; Element South San Francisco, LLC; E7 Rio Dell, LLC; Element 7 Marina, LLC; Element 7 Firebaugh LLC; Element 7 Crescent CityLLC;E7 Oakland LLC;Element 7 Suisun CityLLC;Element 7 Contra Costa LLC; Element 7 SF3 LLC;87 LA LLC; Element 7 Greenfield LLC; RR Enterprises LA LLC; Element 7 Oceanside LLC; and GH Group, Inc. (collectively, "Defendants"), on the other hand, through their respective counsel of record (collectively, the "Parties" and eacha"Party"), as follows:

RECITALS

1. WHEREAS, Plaintiff initiated this action on Novembet 19,2024.

2. WHEREAS, on December 4, 2024, Plaintiff moved on an ex parte basis for the appointment of a Receiver (the "Application") over each of the Defendants, except for GH Group, Inc., and the following additional entities: Element 7 Redwood City,LLC; Element 7 Cathedral City,Inc.;Element 7 ChdaVista One, LLC;Element 7 Mendota,LLC;Element 7 Willits, LLC; Element 7 Fresno, LLC; Element 7 SFl, LC;Element 7 SF2, LLC;Element 7 SF4, LLC and E7 Salinas, LLC (collectively, the "Additional Pledged Entities").

3. WHEREAS, Defendants opposed Plaintiffls Application.

4. WHEREAS, the Court issued an Order denying Plaintiffs Application without prejudice to filing a noticed motion, and scheduled a hearing for a noticed motion (the "Motion") regarding the appointment of a receiver for 9:30 a.m. on January 31,2025.

5. WHEREAS, the parties submitted additional briefng in advance of the January 31,2025 hearing date.

6. WHEREAS, on January 31,2025, the Court entered an Order granting in part Plaintiffs Motion for Preliminary Injunction and Appointment for Receiver and directing Plaintiff s Counsel to submit a proposed Order to the Court.

7. WHEREAS, on February 12, 2025, Plantiffs counsel provided a revised proposed receivership order (the "Proposed Order") to all parties in this action.l I A proposed order was originally circulated on January 31,2025, however, Plaintifls counsel inadvertently omitted 2 BUCHALTER
A P*o.Fsiroi:^r corPoR.\r ro\
INJUNCTION AND APPOINTMENT OF RECEMR; PROPOSED ORDER

JOINT STIPULATION TO ENTER AMENDED ORDER GRANTING PRELIMINARY I
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28 8. WHEREAS, on February 5, 2025, Defendants provided objections to the Proposed Order, which Plaintiff s counsel disagreed with. g. WHEREAS, on February 14, 2025, Plantiff s counsel submitted to the Court a Summary of Responses of the Parties Re [Proposed] Order Granting Appointment of Receiver & Preliminary Injunction pursuant to California Rules of Court, Rule 3 . I 3 I 2(B).

10. WHEREAS, on March 7,2025, the Court issued a Minute Order directing the parties to meet and confer regarding the remaining objections to the Proposed Order and scheduling an Order to Show Cause Re: Objections to Proposed Order Appointing Receiver for 9:30 a.m. on April 2,2025.
ll. WHEREAS, on March 24,2025, the parties engaged in meet and confer discussions regarding the Proposed Order and the objections raised in connection therewith.

12. WHEREAS, the parties have reached an agreement which resolves the previously filed objections to the Proposed Order.

STIPULATION
In light of the foregoing, the Parties hereby stipulate as follows:
l. The Parties agree to entry ofthe revised Proposed Order attached hereto as Exhibit A. For the Court's convenience, a redline copy of the Proposed Order is attached hereto as Exhibit B.

2. Subject to Court approval and entry of the Order, the OSC scheduled for April2, 2025 is hereby vacated.
counsel for the Element 7 parties from the correspondence which included the revised order -t

BUCHALTER
A I'RdrFsirJ\aL coRPoRll ro\
l.o! A\crr Es
INJUNCTION AND APPOINTMENT OF RECEIVER; PROPOSED ORDER

JOINT STIPULATION TO ENTER AMENDED ORDER GRANTING PRELIMINARY 1 2
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28 3. Nothing in this Stipulation waives any rights or claims any Party may assert against the other Parties or any third parties, nor shall it be an admission by any Party or a waiver of any rights, defenses, or claims any Party may have in this or any other matter.

DATED: March 28,2025 BUCHALTER
A Professional Corporation
By: /s/ - Aaron Levine

BUCHALTER
DATED: March 28,2025
DATED: March 28,2025

MICHAEL MUSE-FISHER
POOYA E. SOHI
AARON M. LEVINE
Attorneys for Plaintiff C AND H HOLDINGS

BOYD LAW, APC
By: /s/ - Min Soo Ha
Karie J. Boyd, Esq.

Min Soo Ha, Esq.

Attorneys for Defendants
ELEMENT 7 CA,LLC, a California limited
liability company, et al.

ROSEN SABA, LLP
By: /s/ - Michael Forman
RYAN D. SBA, Esq.

MICHAEL FORMAN, Esq
Attorneys for Defendant
GH GROUP, INC.

A I'RoFFsrro\ar CoRP.Rrl ro\ 4

JOINT STIPULATION TO ENTER AMENDED ORDER GRANTING PRELIMINARY INJUNCTION AND APPOINTMENT OF RECEIVER; PROPOSED ORDER
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28 PROPOSED ORDER
The Court, having considered the Stipulation to Enter Amended Order Granting Preliminary Injunction and Appointment ofReceiver (the "stipulation") between Plaintiff C and H Holdings ("Plaintiff'), on the one hand and defendants Robert Divito; Josh Black, Element 7 CA, LLC; Element South San Francisco,LLC; E7 fuo Dell, LLC; Element 7 Marna,LLC:' Element 7 Firebaugh LLC; Element 7 Crescent City LLC;87 Oakland LLC; Element 7 Suisun CityLLC;Element 7 ContaCosta LLC;Element 7 SF3 LLC;E7 LALLC;Element 7 Greenfield LLC; RR Enterprises LA LLC; Element 7 Oceanside LLC; and GH Group, Inc. (collectively, "Defendants"), on the other hand, by and through their respective counsel, and GOOD CAUSE APPEARING:

IT IS HEREBY ORDERED that:
l. The Stipulation is GRANTED'

2. The Order attached hereto as Exhibit A to the Stipulation is hereby entered effective January 31, 2025.

3. The OSC scheduled for April 2,2025 is vacated.

IT IS SO ORDERED.
o4/0?fJo? 5
DATED
#r#et
H.Jay Ford /Judge
Juocp oF THE SupBnIoR CouRT,
CouNrv or Los AwcBt-Bs
5 BUCHALTER
A liRorFrirr'r1r cof, PoRilro\
l-.s A\crr !:.

INJUNCTION AND APPOINTMENT OF RECEIVER; PROPOSED ORDER

JOINT STIPULATION TO ENTER AMENDED ORDER GRANTING PRELIMINARY

EXHIBIT A
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28 BUCHALTER
A Professional Corporation
MICHAEL MUSE-FISHER (SBN: 253232)
POOYA E. SOHI (SBN: 241574)
AARON M. LEVINE (SBN: 299260)
1000 Wilshire Blvd. Ste 1500
Los Angeles, California 90017 -2457
Telephone: 2 I 3.89 1.0700
Email : mmuse- fi sher@,buchalter. com;
psohi@buchalter. com; alevine @buchalter. com
Attorneys for Plaintiff C and H Holdings,
A California Corporation
C AND H HOLDINGS, a California corporation;
Plaintift
VS

SUPERIOR COURT OF THE STATE OF CALIFORNIA

LOS ANGELES COUNTY SUPERIOR COURT
ELEMENT 7 CA,LLC, a California limited
liabilitycompany, ELEMENT 7 SOUTH SAN
FRANCISCO, LLC, a California limited liability
company, E7 RIO DELL, LLC, a California
limited liability company, ELEMENT 7
MARINA, LLC, a California limited liability
company, ELEMENT 7 FIREBAUGH LLC, a
California limited liability company, ELEMENT
7 CRESCENT CITY LLC, a California limited
liability company, E7 OAKLAND LLC, a
California limited liability company, ELEMENT
7 SUISI-IN CITY LLC, a California limited
liability company, ELEMENT 7 CONTRA
COSTA LLC, a California limited liability
company, ELEMENT 7 SF3 LLC, a California
limited liability company, E7 LALLC, a
California limited liability company, ELEMENT
7 GREENFIELD LLC, a business organization,
form unknown, RR ENTERPRISES LA LLC, a
California limited liability company, ELEMENT
7 OCEANSIDE LLC, a California limited
liability company, GH GROUP, INC., a
Delaware corporation, ROBERT DIVITO, an
individual, JOSH BLACK, an individual and
DOES 1-100,
Defendants.

CASE NO. 24SMCVO5678
Assigned to Honorable H. Jay Ford III
-IItCOSEDI ORDER GRANTING

APPOINTMENT OF RECEIVER AND
ISSUAI\CE OF PRELIMINARY

INJUNCTION IN AID THEREOF
Hearing:

Date: January 31,2025
Time: 9:30 a.m.

Dept. O
I

BUCHALTER
A PRorEssro!ir. QrR.otrr ro\
l-.i ArcELEs ffn€nesEEl oRDER GRANTING APPOINTMENT OF RECEIVER AND ISSUAI{CE

OF PRELIMINARY INJUNCTION IN AID THEREOF
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28 IPRAFETEDI ORDER
Plaintiff C and H Holdings' ("Plaintiff') Application for the Appointment of a Receiver in the above entitled action, came on for hearing on January 3I,2025, at 8:30 a.m., in Department O of the above entitled Court, the Honorable H. Jay Ford III presiding. Plaintiff appeared by and through its counsel of record at Buchalter, APC. Additional appearances were as noted on the record.

The Court, having considered Plaintiff s Application, the Memorandum of Points and Authorities, the Declarations filed in support thereof, the Request for Judicial Notice, the Complaint, Defendants' Opposition briefs and documents submitted in support thereof, and all pleadings on file in this action, and having heard the argument of counsel, and good cause appearing, the Court hereby Orders as follows:

ORDER APPOINTING RECEIVER
IT IS HEREBY ORDERED:

1. Appointment of Receiver. Kevin Singer of Receivership Specialists (the "Receiver") is hereby appointed as receiver in this action effective immediately.

2. The Receivership Estate. The terms "RgcetvqshipGlate," "Receivership Property," and "Collateral" as used herein, shall consist of the following:
(1) All assets obtained or owned by or in the possession of ElementT CA,LLC ("Elerngnt_2"), as well as the following entities owned and managed by Element 7 (collectively referred to as the "P-lgdged Eqtttigg"):r
Tnp PlrocnoEnrrrms
t This Order is not intended to, and shall not provide the Receiver with authority to operate, manage, or control the following entities, and any assets that are solely owned by the entities, and their respective cannabis licenses, ifany:
(1) Element 7 Chula Vista One, LLC [Cl0-0001035-LIC (Retail Adult/ Medicinal license)]; (2) Element 7 Mendota, LLC [C10-000095I-LIC (Retail Adult/Medicinal license)]; (3) Element 7 Willits, LLC [C10-000103I-LIC (Retail Adult/Medicinal license)l; (4) Element 7 SF2 LLC; (5) E7 Salinas, LLC (Retail Adult/Medicinal and Manufacturing and Distribution licenses); (6) PH Investments Group, LLC [Cl0-0000927-LlC (Retail Adult/Medicinal license)]; (7) E7 Napa City,LLC (Retail Adult/Medicinal and Manufacturing license); (8) Element 7 Redwood City, LLC [C10- 0001551-LIC (Retail Adult/Medicinal); (9) Element 7 Cathedral City, Inc. [C10-0000067-LIC (Retail Adult/Medicinal)l; (10) Element 7 Fresno, LLC; (11) Element 7 SFl, LLC [C10-0001392-LIC (Retail Adult/Medicinal)l; and (12) Element 7 SF4 LLC; E7 Moreno Valley, LLC; Element 7 Needles LLC; Element 7 Parlier LLC; Element 7 Guadalupe LLC.
2 RDER GRANTING APPOINTMENT OF'RECEIVER AND ISSUAI{CE

OF PRELIMINARY INJUNCTION IN AID THEREOF

BUCHALTER
A lRorFsirJ'r1r
IPRoPASEDI O
1 Element 7 South San Francisco,LLC,
a California limited liability company

8. Element 7 Contra Costa, LLC, a
California limited liability company

2. E7 Rio Dell, LLC, a California limited
liability company
t Element 7 SF3 LLC, a California limited
liability company
J Element 7 Marina, LLC, a California
limited liability company
LLC, A
company
4 Element 7 Firebaugh LLC, a
California limited liability company
7 ,a SS
organization, form unknown
I

5. Element 7 Crescent City,LLC, a
California limited liability company

12. RR Enterprises LA, LLC, a Califbrnia
limited liability company

6. E7 Oakland LLC, a California limited
liability company

13. Element 7 Oceanside,LLC, a Californra
limited liability company

7. Element 7 Suisun
California limited
City,LLC, a
liability company
(ii) As well as all assets, real property, personal property (both tangible and intangible), cash, accounts, safety deposit boxes, inventory, products, rights of payment, books and records, contracts, leases, goods, fixtures, tenant improvements, equipment, furnishings, general intangibles, accounting software, computer software, security codes, track and trace software, of Element 7 and the Pledged Entities (collectively, the "Businesses" or the "Receivership Defendants"), wherever located, and all accessions, attachments, additions, replacements, and substitutions relating to any of the foregoing, together with all business operations, cannabis dispensary registration certificates, local, municipal, and/or State2 cannabis licenses, permits, or entitlements to cultivate cannabis, manufacture cannabis or cannabis-based products, to sell cannabis and/or cannabis-based products, and/or to transport cannabis and/or cannabis-based products of the Receivership Defendants (the "eenlabi!-Ligensgs"), and all other permits and licenses pertaining to the operations of the Receivership Defendants, of whatever kind and description and wherever situated, and the income, revenues, payments, proceeds and profits derived from the Receivership Defendants, wherever located.

3. Receiver's Powers and Duties: The Receiver shall have all powers, duties and 2 Including the following specific licenses issued by the Department of Cannabis Control (.'Dgq") - (l) Element 7 South San Francisco, LLC [C9-0000381-LIC, (Retail/Non-Storeflont)]; (2) E7 Rio Dell, LLC [Cl0-0000754-LIC (Retail Adult Use/Medicinal)l; (3) Element 7 Marina, LLC [Cl0-0000844-LIC, (Retail Adult Use/Medicinal)]; (a) Elemenr 7 Firebaugh, LLC [C10-0000974-Llc,(Retail AdultUse/Medicinal), C1l-0001522-LIC (Distributor), CDPH10004731 (Manufacture (Type N)l; (5) E7 Oakland, LLC [Cl0-0001323-LIC, (Retail Adult/Medicinal)].

BUCHALTER
A Pqorrsi,rr_rL coRroR\r ro\
l-o! A\cErts IPROPfIS[.nI

OF PRELIMINARY INJUNCTION IN AID THEREOF

ORDER GRANTING APPOINTMENT OF' RE,CEIVER AND ISSUANCE
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28 authorities as are provided by law to use, operate, manage, control, and liquidate the Receivership Estate. Without limiting the foregoing, the Receiver's powers and duties shall include:
a. To seize, collect, manage, control, preserve, protect, maintain, conserve and/or liquidate the Receivership Property, wherever located; b. To enter, gain access, and take possession of the R.eceivership Defendants' premises and/or leasehold interests, and operate the businesses of the Receivership Estate; c. To demand, collect, and receive all monies, funds, payments, andlor profits owed to the Receivership Defendants, and collect all profits and other income from the Receivership Estate, wherever they may exist;
d. To notifu all necessary local, state, and federal governmental agencies of his appointment as Receiver, including but not limited to, the California Franchise Tax Board, the Internal Revenue Service, and the California Board of Equalization; e. To contact any agencies or governmental entities with authority over the Receivership Property, and provide all necessary and required information, including information necessary to secure, renew, extend, transfer, modi$i, or sell any licenses associated with the Receivership Property;
f. To apply for, obtain, renew, maintain, and/or transfer any licenses and permits the Receiver reasonably believes to be necessary for the operation of the Receivership Property;
g. Communicate and sign documents with any regulatory agency or governmental agency or entity, including any cannabis regulatory agency, on behalf of the Receivership Defendants. Any such regulatory agency may rely upon this Court's Order for the Receiver's authority to act on behalf of the Receivership Defendants' h. To take any and all steps necessary to receive, collect and review all mail addressed to the Receivership Defendants, including, but not limited to, mail addressed to each and every one of its Receivership Defendants' Premises and any post office boxes held in the name of any one of the Receivership Defendants, and, at the Receiver's discretion, he is authorized to instruct the U.S. Postmaster to re-route, hold and/or release said mail to the Receiver. Copies of 4 BUCHALTER
t"Ro"osEDroRDER GRANTING APPOINTMENT OF RECEIVER AND

OF'PRELIMINARY INJUNCTION IN AID THEREOF'
ISSUAI{CE
mail reviewed by the Receiver in the performance of his duties will promptly be made available for inspection by Receivership Defendants upon request after review by the Receiver; i. To remove the books, records, and assets of Receivership Defendants to a secure location, if required, so that the Receivership Defendants are prevented from altering, destroying, and/or secreting said books, tecords, and assets; j To contact each of the customers and vendors of the Receivership Defendants in order to advise them not to send further payments to the Receivership Defendants, and to instruct the customers and vendors to send any and all payments directly to the Receiver; k. To market, sell, transfer, collect and/or convey the Receivership Property, or any portion ofthe Receivership Property, and to hire any brokers, agents, or personnel, and execute any documents necessary to effectuate such sale, transfer, or conveyance. Any sale, transfer, ot conveyance of the Receivership Property, or any portion of the Receivership Property, shall be conditioned on, and subject to, approval by the Court on a noticed motion or ex parte motion (where ex parte notice is warranted under the circumstances);
l. To take possession of, process, demand, cause to extend, andlor transfer and sell the Cannabis Licenses either together or individually (in accordance with any applicable statutes or procedures pertaining to the transfer or sale of such license). Any sale or transfer of the Cannabis Licenses shall be conditioned on, and subject to, approval by the Court on a noticed motion or ex parte motion (where ex parte notice is warranted under the circumstances); m. To take possession of all bank accounts, financial accounts, and deposit accounts of any of the Receivership Defendant wherever located, to receive and take possession of any money on deposit in said accounts, and to endorse and sign checks payable to or by the Receivership Defendants;
n. To conduct the businesses of the Receivership Defendants, and pay such amounts as needed to continue the operations ofthe Receivership Defendants, as deemed necessary by the Receiver at the Receiver's discretion. In the event that the Receiver determines that it is in the best interest of the Receivership Estate to shut down any of the operations of the Receivership Estate, he shall not do so until after providing five (5) days' written notice to the Parties and the 5 ORDER GRANTING APPOINTMENT OF RECEIVER AIID ISSUANCE
BUcHALTER
A tRoFFrir.]:^r (:oFroRlr ro\

1.,"i A\criL!r t"RO"OSfiDr
OF PRELIMINARY INJUNCTION IN AID THER.EOF
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28 Court, of the Receiver's intent to do so;
o. To do all things and incur all risks and obligations ordinarily and reasonably incurred by owners, managers and operators of similar businesses as the Receivership Defendants; and, provided the Receiver acts in this manner, no risk or obligation so incurred shall be at the personal risk or obligation of the Receiver, but shall be a risk or obligation solely of the Receivership Estate;
p. To expend funds to purchase such merchandise, inventory, materials, supplies and services as the Receiver deems necessary and advisable to assist the Receiver in performing its duties hereunder and to pay therefore the ordinary and usual rates and to pay for these things from funds within the Receivership Estate; q. The Receiver is authorized, at the Receiver's sole discretion, to retain all existing employees, personnel, managers, or independent contractors of the Receivership Defendants, as the Receiver deems necessary to continue the operations of the Receivership Defendants. Conversely, the Receiver is authorized to terminate any employees, personnel, managers, or independent contractors of the Receivership Defendants if the Receiver determines, in the Receiver's sole and absolute discretion, that it would not be in the best interests of the Receivership Estate to continue such employment or engagement. r. To exclude the Receivership Defendants or any persons claiming under or through the Receivership Defendants to manage, possess, control, or operate any of the Receivership Property, or to interfere with the Receiver's duties and obligations hereunder; s. To use and be authorized to use any and all government or regulatory licenses or permits issued to or for the benefit of the Receivership Property, including, inter alia, the Cannabis Licenses, and to communicate directly with the regulatory agencies, including, without limitation, the Department of Cannabis Control and any city or municipality for purposes of undertaking the Receiver's duties and obligations hereunder; t. To take possession of all the books and records, ledgers, financial statements, financial reports and all other business records of the Receivership Defendant, including but not limited to, information contained on computers relating thereto, pertaining to the 6 BUCHALTER
IPR.OPOSEDIO RDER GRANTING APPOINTMENT OF RECEIVER AND ISSUANCE

OF'PRELIMINARY INJUNCTION IN AID THEREOF
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28 Receivership Property, wherever located, as the Receiver deems necessary for the proper administration, management and/or control of the receivership estate, but said books and records shall be made available to the Receivership Defendants, their agents, servants, employees or its representatives, and all persons or entities acting under or in concert with any one of the Receivership Defendants, as is reasonably necessary; Receivership Defendants shall provide any usernames, passwords, security questions to access any systems/online portals, etc., necessary to operate the business or Receivership Property;
u. The Receiver is authorized, at its sole discretion, to engage and hire any and all security related personnel;
v. The Receiver may use any federal or state taxpayer identification numbers relating to the Receivership Defendants and the Receivership Estate for any lawful purpose relating to the Receivership Estate, and/or his duties hereunder; w. To execute and prepare all documents and to perform all acts, either in the names of the Receivership Defendants, or in the Receiver's own name, which are reasonably necessary to preserving, protecting, managing, controlling, and/or liquidating the Receivership Property;
x. Conditioned on and subject to prior approval from the Court on a noticed or ex parte motion brought by the Plaintifl upon the sale and/or after foreclosure, or a notice in accordance with Article 9 of the Uniform Commercial Code, or a notice that there has been some other settlement agreement between Plaintiff and the Receivership Defendants, the Receiver shall immediately turn over possession, custody, and control of the Receivership Property that was the subject of any foreclosure, sale, or settlement to either Plaintiff or to the successful purchaser, whichever is appropriate. Upon such turnover of possession, the Receiver shall then be divested of possession, custody, and control of the applicable Receivership Property and, if consistent with existing law, the Receiver shall have no further responsibility or liability as to the applicable Receivership Property. To the extent that the Receiver is directed to turn over the Receivership Property pursuant to this paragraph, the Receiver may withhold funds sufficient for the payment of all outstanding receivership costs of administration through the expected termination of the 7 B UCHALTER
l"RarofifDroRn
OF

ER GRANTING APPOINTMENT OF'RECEIVER AND ISSUANCE

PRELIMINARY INJUNCTION IN AID THEREOF
receivership. To the extent that there are insufftcient funds for that purpose, the Receiver may require that Plaintiff or the successful purchaser provide sufficient funds for the payment of all outstanding receivership costs of administration through the expected termination of the receivership prior to turnover;

4. Assistance by Law Enforcement and Locksmiths. The Receiver, as agent of the Court (and only when the Receiver deems absolutely necessary), shall be entitled to the assistance of law enforcement officials when taking possession of the Receivership Property, or at any other time during the term of the Receivership such assistance is necessary to preserve the peace and protect the Receivership Estate. This Order shall be presented to local law enforcement, including police, sheriff, or marshal, and law enforcement will carry out the terms of this Order to assist the Receiver in taking possession of the Property without further Court intervention or order' Locksmith/Entry to Property. The Receiver shall further be entitled to engage a locksmith for the purposes of gaining entry to any property that is the subject of this receivership (including any safes, cabinets, closets, storage facilities, lockers, vaults, etc.) and through any security system, in order to obtain any property, assets or documents to which the Receiver is entitled pursuant to this Order.

The Receiver may have locks or security codes changed, or have keys created that will work for the existing locks.

5. Receiver's Oath and Bond. Before performing his duties, the Receiver shall execute a Receiver's oath and file a bond in the sum of $ 10,000, conditioned upon the faithful performance of the Receiver's duties. The bond shall be from a surety approved by the Court and the oath and bond shall be filed in this Department.

6. Receivership Fees and Costs.
a. The Receiver may charge for the Receiver's services at the Receiver's standard billing rate of $350.00 per hour, billed at a minimum of 0.1 per hour. Associates at the Receiver's office, including Senior Project Managers, may charge $295.00 per hour, Project Managers may charge $135.00 to $225.00 per hour, Accountants may charge between $150.00 to $250.00 per hour, Bookkeepers may charge $95.00 per hour, Administrative Staff may charge $85.00 per hour, and Messengers who handle cash may charge $55.00 per hour. Where appropriate, 8 {+ROPoSTD+ ORDER GRANTING APPOINTMENT OF RECEIVER AND ISSUANCE

BUCHALTER
A lRoFF.;r.. r {r QrR.oFrrro\
1,.: ANc':r !s

OF PRELIMINARY INJUNCTION IN AID THEREOF
I
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the Receiver will have lower billing.
b. Without further order of this Court, the Receiver is authorized to employ the services ofoutside accountants, bookkeepers, attorneys, computer consultants, managers, and other professionals in connection with his duties as duly appointed Receiver. The Receiver is authorized to pay for those services in the amount of the normal fees charged by those professionals' In compliance with CRC 3 . I I 80, this includes the engagement of attorneys to represent and assist the Receiver, as requested, with any legal issues, regulatory compliance, transactions, pleading(s), court fi lings, investigations and appearances.

7. Initial Inventory. The Receiver shall, within sixty (60) days of qualification hereunder, file with this Court, an inventory of all property of which the Receiver shall have taken possession pursuant to this Order, and any other property of which the Receiver shall subsequently come into possession;

8. Monthly Reports. The Receiver will prepare and serve monthly reports reflecting the Receiver's activities, fees and administrative expenses, including fees and costs of accountants and attorneys and other professionals authorized by the Court, incurred for each monthly period in the operation and administration of the Receivership Estate. After ten (10) days following service of each statement, the Receiver may disburse from the Receivership Estate funds, the amount of each statement necessary to pay the Receivership Estate's expenses, costs, fees, and professionals.

Notwithstanding this periodic payment of fees and expenses, all fees and expenses shall be submitted to the Court for its approval and confirmation, in the form of either a properly noticed interim request for fees, by stipulation of all parties, or in the Receiver's Final Account and Report. g. Bank Accounts. To establish bank accounts at any bank the Receiver deems appropriate for the deposit of monies and funds collected and received in connection with his administration of the Receivership estate, at any state or federally chartered banking institution, credit union, or savings association. However, the Receiver shall not be required to put the funds in a federally insured bank account due to cannabis banking restrictions.

10. Utility Providers. The Receiver is authorized to enter into agreements and negotiate with utility providers for and on behalf of the Receivership Estate including the control and right to 9 ORDER GRANTING APPO INTMENT OF RECEIVER AND ISSUAI{CE 4 5
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28 BUCHALTER
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any and all deposits in possession of such utility providers. No utility or other vendor may terminate service or the provision of other goods or services to the Receivership Estate as a result of the nonpayment of pre-receivership obligations, without prior order of this Court.

I l. No Pre-receivership Obligations. The Receiver is not responsible for payment of any utility bills, unpaid payroll expenses, taxes or other unpaid invoices for services or utilities incurred by, or for the benefit ol the Receivership Defendants or the Receivership Property prior to the Receiver's taking possession of the Receivership Property.

12. Use of Funds. All monies coming into the Receiver's possession shall only be expended for the purposes herein authorized, and the balance of funds shall be held by the Receiver pending further order of this Court.

13. Insurance. The Receiver shall determine upon taking possession of the Receivership Property whether in the Receiver's judgment there is sufficient insurance coverage. With respect to any insurance coverage, the Receiver shall be named as an additional insured on the policies for the period that the Receiver shall be in possession of the Receivership Property. If sufficient insurance coverage does not exist, the Receiver shall immediately notift the parties to this lawsuit and shall have thirty (30) calendar days to procure sufficient casualty and liability insurance for the Receivership Property; provided, however, that if the Receiver does not have sufficient funds to do so, the Receiver shall seek instructions from the Court with regard to whether insurance shall be obtained and how it is to be paid for. If consistent with existing law, the Receiver shall not be responsible for claims arising from the lack of procurement or inability to obtain insurance;

14. Tax Identification. The Receivership Defendants shall provide the Receiver with all tax identification numbers utilized in connection with the operation of the Receivership Property' The Receiver shall also be entitled to utilize the tax Identification numbers during its operation of the ReceivershiP Estate;

15. Taxes. The Receiver and its agents, managers, employees and professionals are not responsible for any tax filings or any other tax obligations of the Receivership Estate, the Receivership Property, or the Receivership Defendants, and the Receivership Defendants are ordered to fully comply with all Federal, State and Local tax filings and obligations on behalf the 10 ORDER GRANTING APPOINTMENT OF RECEIVER AND ISSUANCE
OF'PRELIMINARY INJUNCTION IN AID THEREOF I"Ro"OSfiDf
Receivership Property and Receivership Defendants. The Receiver will provide any and all information in its possession to the Receivership Defendants as needed for any tax filings, reporting, audits or other tax related inquiries.

16. Bank Accounts. All banks and financial institutions which hold any Receivership Property accounts or any accounts of the Receivership Defendants, shall turn over all such funds in any accounts to the Receiver upon presentation of a copy of this Order, and shall provide copies of any requested records regarding any accounts to the Receiver.

17. Documents in Receiver's Possession. The Parties to this action shall be entitled to have access to, and make copies of, documents in the Receiver's possession at their own expense.

18. Further Instructions. The Receiver or any of the Parties may apply to this Court, on an ex parte basis, for further or other instructions or orders and for further powers necessary to enable the Receiver to perform his duties properly.

19. Discharge of Receiver. Discharge of the Receiver shall require a court order after a properly noticed motion approving the Receiver's Final Report and Account.

20. Receiver's Certificates. The Receiver may issue receivership certificates in increments of at least $10,000 bearing interest at ten percent (10%) per annum for up to $250,000 to any person or parties, after first conflrming with Plaintiff as to whether Plaintiff intends to fund such receivership certificate(s). All funds loaned to the Receiver pursuant to such receivership certificates shall be deemed to be a lien of first priority which shall be repaid prior to all other encumbrances and claims, other than costs of administration.

21. Limitation of Liability. The Receiver, and his employees, agents, attorneys, accountants, and all other professionals retained by the Receiver, shall have no liability for any obligations, or debts, incurred by the Receivership Defendants or the Receivership Estate. The Receiver and his employees, agents, attorneys, and other professionals, shall have no personal liability unless such parties shall have acted outside the scope of their authority or committed fraud or gross negligence in the administration of the Receiver's duties. In any event, no suit shall be maintained against the Receiver and his employees, agents, management companies, attorneys, and other professionals, unless such parties have acted outside the scope of their authority or committed ll BUCHALTER
a trRorEsii.rlr L:oRroR1ilo\
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ORDER GRANTING APPOINTMENT OF RECEIVER AI{D ISSUANCE
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28 fraud or gross negligence in the administration of their respective duties. The Receiver is acting solely in his capacity as a Receiver and no risk, agreement, liability, claim or obligation incurred by the Receiver shall be at the risk or obligation of the Receiver, but is solely and exclusively a risk, agreement, liability, claim or obligation of the Receivership Estate. In no event shall the Receiver and his employees, agents and attorneys personally have any liability or obligations for the debts of the Receivership Estate. The Receiver and his agents shall have the broadest judicial immunity available under applicable law, and such judicial immunity shall extend to all employees, agents, attorneys, professionals, and management companies retained by the Receiver. No individual or entity may sue the Receiver without fust obtaining permission to do so from this Court.

PRELIMINARY INJUNCTION
IT IS FURTHER ORDERED that:

22. The Receivership Defendants, their officers, members, directors, agents, servants, employees and all persons or entities acting under, or in concert with them or for them, are enjoined from doing any of the following:
a. Interfering, hindering or molesting in any way whatsoever the Receiver in the performance of the Receiver's duties herein described and in the performance of any duties incident thereto;
b. Communicating with any regulatory agency regarding the Receivership Property, without the express written consent of the Receiver; c. Communicating with any lessor to the Receivership Property; d. Failing or refusing to turnover to or provide the Receiver access to all Business Premises in accordance with the provisions hereof; e. Transferring any interest in the Receivership Property by sale, pledge, grant of security interest, assignment, invoice or encumbering in any manner thereof; f. Removing any Receivership Property from the Business Premises, or wherever else located;
g. Transferring, concealing, destroying, defacing or altering arty of t2 BUCHALTER
A I'Rorlsirr\ \r (:oRPoRrrro\
TPRffiSfiDl ORDER GRANTING APPOINTMENT OF RECEIVER AND

OF PRELIMINARY INJUNCTION IN AID THEREOF

ISSUANCE
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28 Receivership Defendants' books and records;
h. Diverting in any of the proceeds from Receivership Defendants' accounts receivable, equipment and/or inventory;
i. Causing any mail addressed to any one of the Receivership Defendants or payments by Receivership Defendants' Account Debtors to be forwarded to any address other than the Business Premises or any existing post office box or other mailing address in the name of any one of the Receivership Defendants, or otherwise interfering with or intercepting any mail intended for any one of the Receivership Defendants; and
j Failing or refusing to immediately turn over to the Receiver the Receivership Property and all monies, checks, funds or proceeds relating to the Receivership Property, or failing to make available to the Receiver all books, records, and corporate governance documents of any one of the Receivership Defendants relating to the Receivership Property.

23. The Receivership Defendants, and their respective officers, directors, members, managers, agents, partners, property managers, employees, assignees, successors, attorneys, representatives, and all persons acting under, in concert with, or for them:
a. Shall relinquish and turn over possession of the Receivership Property, including but not limited to all of its assets (including any cash) to the Receiver forthwith upon its appointment becoming effective ;
b. Shall turn over to the Receiver and direct all other third parties in possession thereofto turn over allkeys, leases, books, records, books ofaccount, ledgers, operating statements, control and passwords to website(s) and/or web domains, budgets, and all other Receivership Property records relating to the Receivership Property, wherever located, and in whatever mode maintained, including information contained on computers and anyand all software relating thereto as well as all banking records, statements and cancelled checks; c. Shall turn over to the Receiver all documents which pertain to all licenses, permits, or government approvals relating to the Receivership Property and shall immediately advise the Receiver of any social security or taxpayer identification numbers used in connection with the operation of the Receivership Property;
l3

IPROPOSEDI ORDER GRANTING APPOINTMENT OF RECEIVER AND ISSU

OF PRELIMINARY INJUNCTION IN AID THEREOF'

BUCHALTER
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28 d. Shall immediately advise the Receiver as to the nature and extent of insurance coverage on the Receivership Property. The parties shall immediately name the Receiver as an additional insured on the insurance policy(ies) for the period that the Receiver shall be in possession of the Receivership Property. The parties and their agents and representatives are prohibited from canceling, reducing or modifying any and all insurance coverage currently in existence with respect to the Receivership Property;
e. Shall cooperate with and reasonably assist the Receiver with respect to its operation of the Receivership Property, including but not limited to promptly responding to any inquiry by the Receiver for information.

The failure of the Receivership Defendants and any of the Receivership Defendants' affiliated persons or entities, and their respective agents, officers, managers, employees, directors, representatives, attorneys, and all persons acting under, in concert with, or for them, as well as all persons or parties with actual or constructive knowledge of this Order, to abide by any term or condition of this Order may be, among other things, punishable by contempt' IT IS FURTHER ORDERED that, in addition to all the powers hereinabove set forth, the Receiver is hereby vested with all the general powers of receivers in cases of this kind, subject to the direction of the Court.

THE COURT ORDERS PLAINTIFF to promptly file a Preliminary Injunction bond under Code of Civil Procedure section 529 in the amount of $10,000.00' IT IS SO ORDERED.
04/0?80? 5
,{
DATED
HON ilI
ruDGE OF THE SUPERIOR COURT
BN 87986407v1
BUCHALTER l4
-fnsres*BtoRDER GRAI\TING APPOTNTMENT OF RECETVER AND ISSUANCE

OF PRELIMINARY INJUNCTION IN AID THEREOF

EXHIBIT B
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28 BUcdA nR

BUCHALTER
A Professional Corporation
MICHAEL MUSE-FISHER (SBN: 253232)
POOYA E. SOHI (SBN:241574)
AARONM. LEVINE (SBN: 299260)
I 000 Wilshire Blvd. Ste 1500
Los Angeles, California 90017 -2457
Telephone: 213.891.0700
Email : mmuse-fi [email protected];
[email protected]; [email protected]
Attorneys lor PlaintiffC and H Holdings,
A California Corporation
C AND H HOLDINGS, a California corporation;
Plaintifi
vs.

ELEMENT 7 CA, LLC, a California limited
liability company, ELEMENT 7 SOUTH SAN
FRANCISCO. LLC, a California limited liability
company, E7 RIO DELL, LLC, a California
limited liability company, ELEMENT 7
MARINA, LLC, a California limited liability
company, ELEMENT 7 FIREBAUCH LLC, a
California limited liability company, ELEMENT
7 CRESCENT CITY LLC, a California limited
liability compdny, E7 OAI(LAND LLC, a
California limited liability company, ELEMENT
7 SUISUN CITY LLC, a California limited
liability company, ELEMENT 7 CONTRA
COSTA LLC, a California limited liability
company, ELEMENT 7 SF3 LLC, a California
limited liability company, E7 LALLC, a
California limited liability company, ELEMENT
7 GREENFIELD LLC, a business organization,
form unknowrl RR ENTERPRISES LA LLC, a
California limited liability company, ELEMENT
7 OCEANSIDE LLC, a California limited
liability company, GH GROUP, INC., a
Delaware corporatioq ROBERT DIVITO, an
individual, JOSH BLACK, an individual and
DOES 1-100,
Defendants.

SUPERIOR COURT OF'THE STATE OF CALII'ORNIA

LOS ANGELES COUNTY SUPERIOR COURT
CASE NO. 24SMCV05678
Assigned to Honorable H. Jay Ford III
IPROPOSEDI ORDER GRAI\TING
APPOINTMENT OF RECEIVER AI\D

ISSUAIICE OF PRELIMINARY

INJUNCTION IN AID THEREOF
Hearing:

Date: Janvry 31,2025
Time: 9:30 a.m.

Dept. O

PNOPOSNNI ORDER GRANTING APPOINTMENT OF RECEIVER AND ISSUANCE

OF PRELIMINARY INJUNCTION IN AID THEREOF
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28 IPROPOSEDI ORDER
Plaintiff c and H Holdings' (.Blaintiff') Application for the Appointment of a Receiver in the above entitled action, came on for hearing on January 31,2025, at 8:30 a.m., in Department O of the above entitled CoLrt, the Honorable H. Jay Ford III presiding. Plaintiff appeared by and through its counsel of record at Buchalter, APC. Additional appearances were as noted on the record.

The Court, having considered Plaintiff s Applicatior\ the Memorandum of Points and Authorities, the Declarations filed in support thereof, the Request for Judicial Notice, the Complaint, Defendants' Opposition briefs and documents submitted in support thereof, and all pleadings on file in this action, and having heard the argument of counsel, and good cause appearing, the Court hereby Orders as follows:

ORDER APPOINTING RECEIVER
IT IS HEREBY ORDERED:
l. Appointment of Receiver. Kevin Singer of Receivership Specialists (the "Receiver") is hereby appointed as receiver in this action effective immediately.

2. The Receivership Estate. The terms 'Re!gtYglsbp--Es!a!9," 'Rcsgjltr$hjp PropglU," and "Collateral" as used herein, shall consist of the following:
(D All assets obtained or owned by or in the possession of Element 7 CA, LLC ("Ele!sgnt_Z), @ the following entities owned and managed by Element 7 (collectively referred to as the "PlCdCCd EntlIlgC'):l

THE PLEDGED ENTITIES
follo\yinq cntitics, and tl€ifalty resFc€+i€asscls that arc solclv owrcd bv thc cntitics. ancl lhcir rcspcclivc cannabis licenscs. if a[y: (L). Elcment 7 Cltlla-Yjqq A!c,-LLe Ie rc40!!S15:Ue Gelsil 4dt{U Mldici-lul licslrsc]l; {2) Elcmcnt 7 Mendota. LLC lCl0-0000951-LIC (Rcail AdultrMedicinal liccnsc)l: (3) Elcrncnt 7 Willits. LLC lCl0- 0001031-LIC (Rcrail AdulLMcdicinal liccnsc)l: (4) Elcmcnl 7 SF2 LLC: (5) E7 Salinas. LLC (Rctail Adult4\'lcdicinal and Manufacturins and Distribution liccnscs)l (6) PH Invcstmcnts Group. LLC lCI0-0000927-LIC (Rctail Adul/Mcdicinal liccnsc)l: (7) E7 Napa Ciry. LLC (Retail Adult,A4cdicinal and Manufacturins liccnsc): (8) Elcrrcnl 7 Rcd\yoocl Citv. LLC-lCl0-0001 55 l-LIC (Rctail Adult,A4cdicinal): (9) Elcncnt 7 Cathcdral Citv. Inc. ICl0-0000067- LIC (Rctail Acjulr/Medicinal)l: (10) Elcmcnl 7 Frcsno. LLC: (ll) Elcrrcnl 7 SFl. LLC [Cl0-0001392-LIC (Rctail Aclult/Mcriicinal)l: and ( l2) Elolcnt 7 SF4 LLC: F,'i Nioir:lo Vallcr'. L.Lf : EIL--rnr:ll 7 l'irL:iilcs i.l.l: El,:nrcDi .i P4ilir'r L.l-C: Elcr.lfri / Grrdalup; i-i,(,1.
2 BUcHAImR

PNOPOSNNI ORDER GRANTING APPOINTMENT OF RECEIVER AND ISSUAIICE

OF PRELIMINARY INJUNCTION IN AID THEREOF
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28 (ii) As well as all assets, real property, personal property (both tangible and intangible), cash, accounts, safety deposit boxes, inventory, products, rights ofpayment, books and records, contracts, leases, goods, fixtures, tenant improvements, equipment, furnishings, general intangibles, accounting software, computer software, secwity codes, track and trace software, of Element 7 and the Pledged Entities (collectively, the "BusttBssef" or the "Receivership Defendants"), wherever located, and all accessions, attachments, additions, replacements, and substitutions relating to any of the foregoing, together with all business operations, cannabis dispensary registration certificates, local, municipal, and/or State2 cannabis licenses, permits, or entitlements to cultivate cannabis, manufacture cannabis or cannabis-based products, to sell cannabis and/or carmabis-based products, arxVor to transport cannabis and/or cannabis-based products of the Receivership Defendants (the "earlsebis-Li!.9rr!s"), ad all other permits and licenses pertaining to the operations of the Receivership Defendants, of whatever kind and description and wherever sihrated, and the income, revenues, payments, proceeds and profits derived from the Receivership Defendants, wherever located. '?Including;+xheu+1imiurren; the following spccific licenres issued by the Depiltment of Cannabis Control ("QQQ") - (l) Elcmenr 7 south san Frmcisco, LLC [C9-0000381-LIC, (RetaiyNon-Storefront)]; (2) E7 Rio Dell LLC [Cl0- 0000754-LIC (Rerail Adult Use/Medicinal)l; (3) Element 7 Marina, LLC [CI0-0000844-LIC, (Retail Adult Use/lvledicinal)l; (4) Element 7 Firebaugh, LLC [C l0-0000974-LIC, (Rebil Adult Use/Medicinal), Cl l-000 1522-LIC (Distfibutor), cDPH-1000473t (Mmufacn[e (Typc N)]; (5) E7 Oaklmd, LLC [CI0-0001323-LIC, (Relail AdulVMedicinal)'1.
3 OF'PRELIMINARY INJUNCTION IN AID THEREOF
BucHAlfiR
a California limited liability company California limited liability company LLC, 8. a
liability company
7 a
liability company
E7 Rio LLC,a
limited liability company
a
company
LLC,A
California limited company organzatioq form unknown
a a
California limited
a 2. a
company limited company
E7 Oakland LLC, a
liability company
6 limited liability company
Element 7 LLC, A
California limited
a
company
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28 3. Receiver's Powers and Duties: The Receiver shall have all powers, duties and authorities as are provided by law to use, operate, manage, control, and liquidate the Receivership Estate. Without limiting the foregoing, the Receiver's powers and duties shall include:
a. To seize, collect, manage, control, preserve, protect, maintain, conserve and/or liquidate the Receivership Property, wherever located; b. To enter, gain access, and take possession ofthe Receivership Deferdants' premises and,/or leasehold interests, and operate the businesses ofthe Receivership Estate; c. To demand, collect, and receive all monies, funds, payments, ard/or profits owed to the Receivership Defendants, and collect all profits and other income from the Receivership Estate, wherever they may exist;
d. To notify all necessary local, state, and federal governmental agencies ofhis appointment as Receiver, including but not limited to, the California Franchise Tax.Board, the Internal Revenue Service, and the California Board ofEqualization; e. To contact any agencies or governmental entities with authority over the Receivership Property, and provide all necessary and required information, including information necessary to secure, renew, extend, transfer, modify, or sell any licerses associated with the Receivership Property;
f. To apply for, obtain, renew, maintain, and/or transfer any licenses and permits the Receiver reasonably believes to be necessary for the operation of the Receivership Property;
g. Communicate and sign documents with any regulatory agency or governmental agency or entity, including any cannabis regulatory agency, on behalf of the Receivership Defendants. Any such regulatory agency may rely upon this Court's Order for the Receiver's authority to act on behalf of the Receivership Defendants. h. To take any and all steps necessary to receive, collect and review all mail addressed to the Receivership Defendants, including, but not limited to, mail addressed to each ard every one of its Receivership Defendants' Premises and any post office boxes held in the name of any one of the Receivership Defendants, and, at the Receiver's discretiorg he is authorized to 4 BUcHALER
IPNOPOSNNI ORDER GRANTING APPOINTMENT OF RECEIVER AND .

OF PRELIMINARY INJUNCTION IN AID THEREOF

ISSUANCE
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irstruct the U.S. Postmaster to re-route, hold and/or release said mail to the Receiver. Copies of mail reviewed by the Receiver in the performarrce of his duties will promptly be made available for impection by Receivership Defendants upon request after review by the Receiver; i. To remove the books, records, ard assets ofReceivership Defendants to a secure locatiorL if required, so that the Receivership Defendants are prevented from altering, destroying, and/or secreting said books, records, and assets; j. To contact each of the customers and vendors of the Receivership Defendants in order to advise them not to serd further payments to the Receivership Defendants, and to instruct the customers ard vendors to send any and all payments directly to the Receiver; k. To market, sell, transfer, collect and/or convey the Receivership Property, or any portion ofthe Receivership Property, and to hire any brokers, agents, or personnel, and execute any documents necessary to effectuate such sale, transfer, or conveyance. Any sale, trarxfer, or conveyance of the Receivership Property, or any portion of the Receivership Property, shall be conditioned on, and subject to, approval by the Court on a noticed motion or ex parte motion (where ex parte notice is warranted under the circumstances);
l. To take possessionof, process, demand, cause to extend, and/or transler and sell the Cannabis Licerses either together or individually (in accordance with any applicable statutes or procedures pertaining to the transfer or sale of such license). Any sale or transfer of the Cannabis Licenses shall be corditioned oq and subject to, approval by the Court on a noticed motion or ex parte motion (where ex parte notice is warranted under the circumstances); m. To take possession of all bank accounts, financial accounts, and deposit accounts ofany ofthe Receivership Defendant wherever located, to receive and take possession of any money on deposit in said accounts, and to endorse and sign checks payable to or by the Receivership Defendants ;
n. To conduct the businesses of the Receivership Defendants, and pay such amounts as needed to continue the operations ofthe Receivership Defendants, as deemed necessary by the Receiver at the Receiver's discretion. In the event that the Receiver determines that it is in the best interest of the Receivership Estate to shut down any of the operations of the Receivership

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Estate, he shall not do so until after providing five (5) days' written notice to the Parties and the Court, ofthe Receiver's intent to do so;
o. To do all things and incur all risks and obligations ordinarily and reasonably irrurred by owners, managers and operators of similar businesses as the Receivership Defendants; and, provided the Receiver acts in this manner, no risk or obligation so incurred shall be at the persornl risk or obligation of the Receiver, but shall be a risk or obligation solely of the Receivership Estate;
p. To expend funds to purchase such merchandise, inventory' materials, supplies and services as the Receiver deems necessary and advisable to assist the Receiver in performing its duties hereunder and to pay therefore the ordinary and usual rates and to pay for these things from funds within the Receivership Estate; q. The Receiver is authorized, at the Receiver's sole discretion, to retain all existing employees, personnel, managers, or independent contractors of the Receivership Defendants, as the Receiver deems necessary to continue the operations of the Receivership Defendants. Conversely, the Receiver is authorized to terminate any employees, persorurel, managers, or independent contractors of the Receivership Defendants if the Receiver determines, in the Receiver's sole and absolute discretion, that it would not be in the best interests of the Receivership Estate to continue such employment or engagement. r. To exclude the Receivership Defendants or any persons claiming under or through the Receivership Defendants to manage, possess, control, or operate any of the Receivership Property, or to interfere with the Receiver's duties and obligatiors hereunder; s. To use and be authorized to use any and all government or regulatory licenses or permits issued to or for the benefit of the Receivership Property, including, inter alia, the Cannabis Licenses, and to communicate directly with the regulatory agencies, including, without limitation, the Department of Cannabis Control and any city or municipality for purposes ofundertaking the Receiver's duties and obligations hereunder; t. To take possession of all the books and records, ledgers, financial statements, fipancial reports and all other business records ofthe Receivership Defendant, including BUCHATER 6
[PROPOSEDI ORDER GRANTING

OF PRELIMINARY

APPOINTMENT OF RECEIVER AND ISSUANCE

INJUNCTION IN AID THEREOF
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28 but not limited to, information contained on computers relating thereto, pertaining to the Receivership Property, wherever located, as the Receiver deems necessary for the proper administratior\ management and/or control ofthe receivership estate, but said books and records shall be made available to the Receivership Defendants, their agents, servants, employees or its representatives, and all persons or entities acting under or in concert with any one of the Receivership Defendants, as is reasonably necessary; Receivership Defendants shall provide any usernames, passwords, security questions to access any systems/online portals, etc., necessary to operate the business or Receivership Property;
u. The Receiver is authorized, at its sole discretion, to engage and hire any and all security related personnel;
v. The Receiver may use any federal or state taxpayer identification numbers relating to the Receivership Defendants and the Receivership Estate for any lawful purpose relating to the Receivership Estate, and/or his duties hereunder; w. To execute and prepare all documents and to perform all acts, either in the names of the Receivership Defendants, or in the Receiver's own name, which are reasonably necessary to preserving, proteating, managing, controlling, andlor liquidating the Receivership Property;
x. Conditioned on and subject to prior approval from the Court on a noticed or ex parte motion brought by the Plaintifl upon the sale and/or after foreclosure, or a notice in accordance with Article 9 of the Uniform Commercial Code, or a notice that there has been some other settlement agreement between Plaintiff and the Receivership Defendants, the Receiver shall immediately turn over possessior\ custody, and control of the Receivership Property that was the subject of any foreclosure, sale, or settlement to either Plaintiff or to the successful purchaser, whichever is appropriate. Upon such turnover of possession, the Receiver shall then be divested of possessiorL custody, and control of the applicable Receivership Property and, if consistent with existing law, the Receiver shall have no further responsibility or liability as to the applicable Receivership Property. To the extent that the Receiver is directed to turn over the Receivership Property pursuant to this paragiaph, the Receiver may withhold funds sufficient for the payment of 7 OF' PRELIMINARY INJUNCTION IN AID THEREOF
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28 all outstanding receivership costs of administration through the expected termination of the receivership. To the extent that there are insufficient funds for that purpose, the Receiver may require that Plaintiff or the successful purchaser provide sufficient funds for the payment of all outstanding receivership costs of administration through the expected termination of the receivership prior to turnover;

Locksmith/Entry to Property. The Receiver shall further be entitled to engage a locksmith for the purposes ofgaining entry to any property that is the subject ofthis receivership (including any safes, cabinets, closets, storage facilities, lockers, vaults, etc.) ard through any security system, in order to obtain any property, assets or documents to which the Receiver is entitled pursuant to this Order.

The Receiver may have locks or security codes changed, or have keys created that will work for the existing locks.

5. Receiver'sOathandBond. Beforeperforminghisduties,theReceivershallexecute a Receiver's oath and file a bond in the sum of $ I 0,000, conditioned upon the faithful performance ofthe Receiver's duties. The bond shall be from a surety approved by the Court and the oath and bond shall be filed in this Department.

6. Receivership Fees and Costs'
a. The Receiver may charge for the Receiver's services at the Receiver's standard billing rate of $350.00 per hour, billed at a minimum of 0.1 per hour. Associates at the Receiver's office, including Senior Project Managers, may charge $295.00 per hour, Project Managers may charge $135.00 to $225.00 per hour, Accountants may charge between $150.00 to $250.00 per hour, Bookkeepers may charge $95.00 per hour, Administrative Siaff may charge 8 .

OF PRELIMINARY INJUNCTION IN AID THEREOF
2 $85.00 per hour, and Messengers who handle cash may charge $55.00 per hour. Where appropriate, the Receiver will have lower billing.
b. Without further order of this Court, the Receiver is authorized to employ the services ofoutside accountants, bookkeepers, attomeys, computer consultants, managers, ard other professionals in connection with his duties as duly appointed Receiver. The Receiver is authorized to pay for those services in the amount of the normal fees charged by those professionals. In compliance with CRC 3.1 I 80, this includes the engagement ofattorneys to represent and assist the Receiver, as requested, with any legal issues, regulatory compliarrce, transactions, pleading(s), court filings, investigations and appearances.

7. Initial Inventorv. The Receiver shall, within sixty (60) days of qualification hereunder, file with this Court, an inventory of all property of which the Receiver shall have taken possession pursuant to this Order, and any other property of which the Receiver shall subsequently come into possession;

8. Monthlv Reoorts. The Receiver will prepare and serve monthly reports reflecting the Receiver's activities, fees ard administrative expenses, including fees and costs ofaccountants and attorneys and other professionals authorized by the Court, incurred for each monthly period in the operation and administration of the Receivership Estate. After ten ( l0) days following service of each statement, the Receiver may disburse from the Receivership Estate funds, the amount of each statement necessary to pay the Receivership Estate's expenses, costs, fees, and professionals.

Notwithstanding this periodic payment of fees and expenses, all fees and experses shall be submitted to the Court for its approval and confirmation, in the form ofeither a properly noticed interim request for fees, by stipulation of all parties, or in the Receiver's Final Account and Report.

9. Bank Accounts. To establish bank accounts at any bank the Receiver deems appropriate for the deposit of monies ard funds collected and received in connection with his administration of the Receivership estate, at any state or federally chartered banking irstitution, credit union, or savings association. However, the Receiver shall not be required to put the funds in a federally insured bank account due to cannabis banking restrictions'

10. Utility Providers. The Receiver is authorized to enter into agreements and negotiate 9 .

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28 with utility providers for and on behalf of the Receivership Estate including the control and right to any and all deposits in possession of such utility providers. No utility or other vendor may terminate service or the provision ofother goods or services to the Receivership Estate as a result of the nonpayment ofpre-receivership obligations, without prior order ofthis Court. 1 1. No Pre-receivership Obligations. The Receiver is not responsible for payment of any utility bills, unpaid payroll experses, taxes or other unpaid invoices for services or utilities incurred by, or for the benefit of, the Receivership Defendants or the Receivership Property prior to the Receiver's taking possession of the Receivership Property.

I 3. Insurance. The Receiver shall determine upon taking possession of the Receivership Property whether in the Receiver's judgment there is sufficient insurarrce coverage. With respect to any insurance coverage, the Receiver shall be named as an additional insured on the policies for the period that the Receiver shall be in possession ofthe Receivership Property. If sufficient insurance coverage does not exist, the Receiver shall immediately notify the parties to this lawsuit and shall have thirty (30) calendar days to procure sufficient casualty and liability insurance for the Receivership Property; provided, however, that if the Receiver does not have sufficient funds to do so, the Receiver shall seek irstructiors from the Court with regard to whether insurance shall be obtained and how it is to be paid for. If corsistent with existing law, the Receiver shall not be responsible for claims arising from the lack of procwement or inability to obtain insurance;

14. Tax ldentification. The Receivership Defendants shall provide the Receiver with all tax identification numbers utilized in connection with the operation of the Receivership Property.

The Receiver shall also be entitled to utilize the tax Identification numbers during its operation of the Receivership Estate;

15. Taxes. The Receiver and its agents, managers, employees and professionals are mt responsible for any tax filings or any other tax obligations of the Receivership Estate, the Receivership Property, or the Receivership Defendants, and the Receivership Defendants are

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28 ordered to fully comply with all Federal, State and Local tax filings and obligations on behalfthe Receivership Property and Receivership Defendants. The Receiver will provide any and all information in its possession to the Receivership Defendants as needed for any tax filings, reporting, audits or other tax related inquiries.

16. Bank Accounts. All banks and financial irstitutions which hold any Receivership Property accounts or any accounts of the Receivership Defendants, shall turn over all such funds in any accounts to the Receiver upon presentation of a copy of thtis Order, and shall provide copies of any requested records regarding any accounts to the Receiver' l7. Documents in Receiver's Possession. The Parties to this action shall be entitled to have access to, ard make copies of, documents in the Receiver's possession at thet ov/n expense.

18. Furtherlrstructions. TheReceiveroranyofthePartiesmayapplytothisCourt,on an ex parte basis, for ftuther or other irstructions or orders and for further powers necessary to enable the Receiver to perform his duties properly.

19. Discharge of Receiver. Discharge of the Receiver shall require a court order after a properly noticed motion approving the Receiver's Final Report and Account.

20. Receiver's Certificates. The Receiver may issue receivership certificates in increments of at least $ 1 0,000 bearing interest at ten percent ( 10%) per annum for up to $250,000 to any person or parties, after first confirming with Plaintiff as to whether Plaintiff intends to fund such receivership certificate(s). All funds loaned to the Receiver pursuant to such receivership certificates shall be deemed to be a lien of first priority which shall be repaid prior to all other encumbrances and claims, other than costs of administration.

21. Limitation of Liabilitv. The Receiver, and his employees, agents, attorneys, accountants, ard all other professionals retained by the Receiver, shall have no liability for any obligations, or debts, incurred by the Receivership Defendants or the Receivership Estate. The Receiver and his employees, agents, attorneys, and other professionals, shall have no personal liability unless such parties shall have acted outside the scope oftheir authority or committed lraud or gross negligence in the administration of the Receiver's duties. In any event, no suit shall be maintained against the Receiver and his employees, agents, management companies, attorneys, and lt
IPROPOSED] ORDER GRANTING APPOINTMENT OF RECEIVER AND ISSUAI\CE

OF PRELIMINARY INJUNCTION IN AID THEREOF
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28 other professionals, unless such parties have acted outside the scope oftheir authority or committed fraud or gross negligence in the administration oftheir respective duties. The Receiver is acting solely in his capacity as a Receiver and no risk, agreement, liability, claim or obligation incurred by the Receiver shall be at the risk or obligation ofthe Receiver, but is solely and exclusively a risk, agreement, liability, claim or obligation of lhe Receivership Estate. In no event shall the Receiver and his employees, agents and attorneys personally have any liability or obligations for the debts of the Receivership Estate. The Receiver and his agents shall have the broadest judicial immunity available under applicable law, and such judicial immunity shall extend to all employees, agents, attorneys, professionals, and management companies retained by the Receiver. No individual or entity may sue the Receiver without first obtaining permission to do so from this Court.

PRELMINARY INJUNCTION
IT IS FURTIIER ORDERED that:

22. The Receivership Defendants, their officen, members, directors, agents, servants, employees and all persons or entities acting under, or in concert with them or for them, are enjoined from doing any of the following:
a. Interfering, hindering or molesting in any way whatsoever the Receiver in the performance of the Receiver's duties herein described and in the performance of any duties incident thereto;
b. Communicating with any regulatory agency regarding the Receivership Property, without the express written consent ofthe Receiver; c. Communicating tVith any lessor to the Receivership Property; d. Failing or refusing to turnover to or provide the Receiver access to all Business Premises in accordance with the provisions hereof; e. Transferring any interest inthe Receivership Property by sale, pledge, grant of security interest, assignment, invoice or encumbering in any manner thereof; f. Removing any Receivership Property from the Business Premises, or wherever else located;
12 OF' PRELIMINARY INJUNCTION IN AID THEREOF
BucHArrR
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28 g. Transfening, concealing, destroying, defacing or altering any of Receivership Defendants' books and records;
h. Diverting in any of the proceeds from Receivership Defendants' accounts receivable, equipment and/or inventory;
i. Causing any mail addressed to any one ofthe Receivership Defendants or payments by Receivership Defendants' Account Debtors to be forwarded to any address other than the Business Premises or any existing post office box or other mailing address in the rnme ofany one of the Receivership Defendants, or otherwise interfering with or intercepting any mail intended for any one ofthe Receivership Defendants; and
j. Failing or refusing to immediately turn over to the Receiver the Receivership Property and all monies, checks, funds or proceeds relating to the Receivership Property, or failing to make available to the Receiver all books, records, and corporate governance documents ofany one ofthe Receivership Defendants relating to the Receivership Property.

23. The Receivership Deflendants, and their respective officers, directors, members, managers, agents, partners, property managers, employees, assignees, successors, attorneys, representatives, and all persons acting under, in concert with, or for them:
a. Shall relinquish and turn over possession of the Receivership Property, including but not limited to all of its assets (including any cash) to the Receiver forthwith upon its appoi ntment beco ming effective;
b. Shall turn over to the Receiver and direct all other third parties in possession thereofto turn over all keys, leases, books, records, books ofaccount, ledgers, operating statements, control and passwords to website(s) ard/or web domains, budgets, and all other Receivership Property records relating to the Receivership Property, wherever located, and in whatever mode maintained, including information contained on computers ard any and all software relating thereto as well as all banking records, statements and cancelled checks; c. Shall turn over to the Receiver all documents which pertain to all licerses, permits, or goverrunent approvals relating to the Receivership Property and shall immediately advise the Receiver of any social security or taxpayer identification numbers used in connection l3

IPROPOSEDI ORDER GRANTING

OF'PRELIMINARY

APPOINTMENT OF RECEIVER AND ISSUANCE

INJUNCTION IN AID THEREOF
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28 BucHAlnR
with the operation of the Receivership Property;
d. Shall immediately advise the Receiver as to the nature and extent of irsurance coverage on the Receivership Property. The parties shall immediately name the Receiver as an additional insured on the irsurance policy(ies) for the period that the Receiver shall be in possession of the Receivership Property. The parties and their agents and representatives are prohibited from canceling, reducing or modifying any and all irsurance coverage cunently in existence with respect to the Receivership Property;
e. Shall cooperate with ard reasonably assist the Receiver with respect to its operation of the Receivership Property, including but not limited to promptly responding to any irquiry by the Receiver for information.

IT IS FURTHER ORDERED that, in addition to all the powers hereinabove set forth, the Receiver is hereby vested with all the general powers of receivers in cases of this kind, subject to the direction of the Court.

THE COURT ORDERS PLAINTIFF to promptly file a Preliminary Injunction bond under Code of Civil Procedure section 529 in the amount of $1 0,000.00.

IT IS SO ORDERED.

DATED:

HON. H. JAY FORD IlI

JUDGE OF THE SUPERIOR COURT
BN 87983022v1
t4

IPROPOSEDI

OF PRELIMINARY INJUNCTION IN AID THEREOF

ORDER GRANTING APPOINTMENT OF RECEIVER AND ISSUANCE
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28 PROOF OF SERVICE
C and H Holdings v. Element 7 CA, LLC, et al
Case No. 24SMCV05678
I am employed in the County of Los Angeles , State of California. I am over the age of 18 and not aparty to the within action. My business address is at BUCHALTER, A Professional Corporation, 1000 Wilshire Boulevard, Suite 1500, Los Angeles, CA 90017-2457.

On the date set forth below, I served the foregoing document described as JOINT STIPULATION TO ENTER AMEI\DED ORDER GRANTING PRELIMINARY INJUNCTION AND APPOINTMENT OF RECEIVER; PROPOSED ORDER on all other parties and/or their attorney(s) of record as follows:
**SEE ATTACHED SERVICE LIST**
V BY EMAIL On April 1.2025,I personallv served from my electronic address [email protected], iir "PDF" fonndt, the doiument(s) descri6ed above, with attachments, to the individuals stated above to their known emaiVelectronic addresses as shown above. The transmission was reported as complete and without error. (CRC 5 2.251, et seq.) I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct to the best of my knowledge. Executed on April 1r 2025, at Los Angeles, California.

Deborah L. Brown /s/ Deborah L. Brown
(Signature)
5 BUCHALTER
A lRdrrstr.:\a1 (:otPoRrrio\

INJUNCTION AND APPOINTMENT OF RECEIVER

JOINT STIPULATION TO ENTER AMENDED ORDER GRANTING PRELIMINARY BUcHALTER

SERVICE LIST
Karie J. Boyd
Thomas D. Georgianna
Min So Ha
Boyd Law APC
2029 Century Park East, Suite 3160
Los Angeles, CA 90061
[email protected];
[email protected];
[email protected]
Attorneys for Defendants :

ELEMENT 7 CA, LLC, a California limited liability
company, ELEMENT 7 SOUTH SAN FRANCISCO, LLC,
a California limited liability company, E7 RIO DELL, LLC, a California limited liability company, ELEMENT 7
MARINA, LLC, a California limited liability company,
ELEMENT 7 FIREBAUGH LLC, a California limited
liability company, ELEMENT 7 CRESCENT CITY LLC,a
California limited liability company, E7 OAKLAND LLC,
a California limited liability company, ELEMENT 7
SUISUN CITY LLC, a California limited liability company, ELEMENT 7 CONTRA COSTA LLC, a California limited
liability company, ELEMENT 7 SF3 LLC, a California
limited liability company, E7 LALLC, a California limited liability company, ELEMENT 7 GREENFIELD LLC, a
business organization, form unknown, RR ENTERPRISES
LA LLC, a California limited liability company, ELEMENT 7 OCEANSIDELLC,a California limited liability company;
ROBERT DIVITO, an individual; and JOSH BLACK, an
individual
Michael Forman
Albro Lundy
Jenny Wood
Ryan Saba
Danielle Sanchez
Rosen Saba, LLP
2301 Rosecrans Ave., Suite 3180
ElSegundo, CA 90245
mforman@rosensaba. c om;
Albro@bakerburtonlundy. c om;
j enny@bakerburtonlundy. com;
[email protected];
dsanchez@ros ens ab a. c om
Attorneys for Defendant:

GH GROUP, INC., a Delaware Corporation
Karie J. Boyd
Thomas D. Georgianna
Min So Ha
Boyd Law APC
2029 Century Park East, Suite 3160
Los Angeles, CA 9006i
[email protected];
[email protected];
[email protected]
Attorneys for Third Parties:

ELEMENT 7 CHULA VISTA ONE, LLC; ELEMENT 7
SF2 LLC; ELEMENT 7 FRESNO, LLC;ELEMENT 7
CATHEDRAL CITY INC.;ELEMENT 7 WILLITS LLC;
ELEMENT 7 SFl LLC; ELEMENT 7 SF4LLC;87
SALINAS LLC; ELEMENT 7 REDWOOD CITY LLC;
and ELEMENT 7 MENDOTA LLC
6 INJUNCTION AND APPOINTMENT OF RECEIVER

JOINT STIPULATION TO ENTER AMENDED ORDER GRANTING PRELIMINARY Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-237 07 4C92E0F

MANAGEMENT SERVICES AGREEMENT
This Management Services Agreement (this "AJfegmgq!") is entered into as of September 3,2025 (the "Effeglive_Dat9"), by and among NUG Inc., a Nevada corporation (or its designee, the "MAuagglqent Entit),"), Element 7 Firebaugh LLC, a Califomia limited liability company (the "Company"), and Kevin Singer, acting solely in his capacity as Court-Appointed Receiver (the "Receivel"). Company and Management Entity may each be referred to herein as a "!4{y" and collectively, the "83{i9S".

RECITALS
WHEREAS, the assets of the Company are under receivership pursuant to a Court Order dated April 2,2025 ("CoU4_QfdeI") issued by the Superior Court of Califomia, County of Los Angeles (the "Cqurt") in Case No.24SMCV05678 (the "C4ge").

WHEREAS, Company possesses the following valid licenses issued by the Califomia Department of Cannabis Control (the "Department"): (i) CDPH-10004731 (Manufacturing); (ii) C10-0000974-LIC (Retailer); and (iii) Cll-0001522-LIC (Distributor) (D - (iiD collectively, the "S14!e-Lige$e5") and the following issued by the city of Firebaugh (the "City"):(a) Commercial Cannabis Regulatory Permit; and (b) Development Agreement pursuant to Resolution No. PZ2l-07 ((a) - (b) collectively, the "lqgal Authorization"). The State Licenses and the Local Authorization shall collectively be referred to herein as the "L_iggrueg". The Licenses allow Company to engage in the manufacturing, distribution and retail sale of legal adult-use cannabis and cannabis products (collectively, "Cannabis Products") at 1210 l2th St., Firebaugh, CA 93622 (collectively, the "Premises");
WHEREAS, Management Entity has entered into an Asset Purchase Agreement (the "APA") to acquire certain assets owned by Company, including but not limited to, the Local Authorization; and WHEREAS, the Company seeks to engage Management Entity to manage all of the Company's manufacturing, distribution and retail sales operations pursuant to the Licenses (the "Operations") and pursuant to the terms and conditions of this Agreement.

AGREEMENT
NOW, THEREFORE, in consideration of the mutual agreements of the Parties set forth below, and other good and valuable consideration, the receipt and sufficiency ofwhich is hereby acknowledged, the Parties agree as follows:
l. Definitions. In addition to the terms defined above, the following terms will have the following meanings when used in this Agreement:
l.l. "Affiliate" means a corporation, limited liability company or other entity that, directly or through one or more intermediaries, controls, is controlled by or is under common control with, a Party.

1.2. "Affi_llatg_Expgn$1" means an expense related to any agreement or transaction by and between Company and an Affiliate of Company.

1.3. "eolqmenge0.g!$_Date" shall mean the day the Company grants all access to Management Entity necessary to commence Services, which is expected to occw within seventy-two (72) hours of the Receiver obtaining a Court order approving the Agreement.

1.4. "Eorcg_Mqj_Cqg_Evglt" means an event that wholly or partly prevents or delays the performance of obligations and/or the adherence to deadlines or time periods arising under this Agreement and shall include, without limitation by enumeration: (i) an act of God, explosion, accident, fire, lightning, earthquake, storms, flood or similar cataclysmic occurrence; (ii) war, invasion, hostilities (whether war is declared or not, and whether or not such war involves the jurisdictions in which the Parties reside or conduct business and whether or not such war involves the jurisdictions where this Agreement is to be performed); (iii) terrorist threats or acts, riots or other civil unrest; (iv) requirements of any applicable Law; (v) actions, embargoes or blockades in effect on or after the date of this Agreement; (vi) restrictions or restraints Management Services Agreement - Page I of 16
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-237 07 4C92E0F imposed by law or by rule, regulation or order of any governmental authority; (vii) any action or failure to acf of any governmental authority; (viii) strikes, labor stoppages or slowdowns or other industrial disturbances; (ix) shortages of or delays in receiving raw materials; (x) shortage of adequate power or transportation facilities; (xi) COVID-19 (Coronavirus) or any other epidemics or pandemics and any events related thereto, including but not limited to, quarantines, third party vendor shut downs, business shut downs, and travel restrictions; or (xii) any other event that makes it impossible or impractical for either Party to perform its obligations hereunder in the time periods set forth herein.

1.5. "Confidential Inform " means all information, including, without limitation, information: (i) identified by the disclosing Party as confidential; (ii) known or intended to be known only to the disclosing Party, its subsidiaries, and its affiliates, and their employees; and/or (iii) that is reasonably understood by the receiving Party to be confidential, and includes, but is not limited to, all information not generally known to the public, in spoken, printed, electronic or any other form or medium, relating directly or indirectly to a Party's business processes, owners, financial interest holders, controlling persons, practices, methods, policies, plans, publications, documents, research, operations, services, strategies, techniques, agreements, contracts, terms of agreements, transactions, potential transactions, negotiations, pending negotiations, work-in-process, databases, manuals, records, material, sources of material, supplier information, vendor information, financial information, results, accounting information, accounting records, marketing information, pricing information, design information, payroll information, personnel information, supplier lists, vendor lists, developments, reports, intemal controls, security procedures, market studies, sales information, revenue, costs, formulae, product plans, designs, styles, models, ideas, specifications, customer information, customer lists, client information, client lists, manufacturing information, distributor lists, buyer lists, intellectual property, improvements to any intellectual property and both the existence and the terms of this Agreement. Proprietary and Confidential Information does not include information readily accessible in the public domain by no fault of the non-disclosing Party, or information that is required to be kept on record by licensees pursuant to Cal. Code Regs. tit. 4 $ 15037.

1.6. "Material Contracts" means any contract: (i) of Company that (A) increases Expenses by an aggregated annual amount in excess of$10,000.00, and (B) in each case, cannot be cancelled by the Company without penalty or without more than thirfy (30) days' notice, (ii) that require Company to exclusively purchase any product or service from a third party, (iii) between or among Company on the one hand and an Affiliate of the Company on the other hand, (iv) that are commercially material to the net income of the Operations, and (v) not previously disclosed and made available to Management Entity.

Material Contracts shall not include any agreements disclosed to the Management Entity prior to the Commencement Date.

1.7. "Sjgt9_Bggulations" means the regulations set forth in Title 4 California Code of Regulations Division 19, as may be amended from time-to-time.

1.8. "Tgru" means the period beginning with the Effective Date and ending as specified in Section 5.

All other terms will be construed according to their ordinary and common meaning unless otherwise specified or unless otherwise required by the context of this Agreement.

2. Engagement and Authorization.

2.1. Engagement Company hereby engages and retains Management Entity to provide the Management Services (as hereinafter defined) and to otherwise manage the Operations as set forth herein, and Management Entity hereby accepts such engagement on the terms and conditions of this Agreement.

2.2. Authorizatiozl. Commencing on the Commencement Date, Company hereby authorizes Management Entity to take any and all actions, either directly or on behalf of Company, which Management Entity deems in its reasonable discretion to be necessary in furtherance of the Operations. To the extent Management Entity may not take any such action directly, it may direct Company to take such action, and Management Services Agreement - Page 2 of 16
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-SD02-23707 4C92E0F Company hereby agrees to promptly comply with any such reasonable direction. Subject to the provisions in Section 3, Management Entity will have the sole and exclusive responsibility for the execution of the following managernent and administration functions (collectively, the "Management Seryices"), or shall have the Management Services performed by a third-party subject to the provisions of Section 11.13; provided, that, the Parties understand, acknowledge and agree that Management Entity shall only be iesponsible for the expenses arising after the Commencement Date and shall not be responsible for any .*p.nr"r arising from ictions or events prior to the Commencement Date. The Management Services shall include, without limitation, the following:

2.2.1. Expenses. Causing all of the expenses and debts of Company arising after the Commencement Date to be paid including, but not limited to, rent, mortgage, insurance, advertising, vehicle related expenses, banking charges, licensing fees, taxes, legal, consulting and professional fees, repairs and improvements, and waste management fees.

2.2.2. EmploYees'
(a) Recruiting,hiring,investigating,paying,supervising,disciplining and terminating employees, including, but not limited to, all associates, leads, supervisors, managers, and directors, to be employed at the Premises under Management Entity's supervision (collectively, the "Enlplqyscg");
(b) Provide human resources services including, but not limited to, training and development of the Employees, and advice and establishment of policies for the Employees' compensation and benefits, all in compliance with applicable labor and employment and local and state cannabis Laws and other applicable Laws; and
(c) Provide payroll processing services including paying the Employees' wages and provide them with the benefits that Management Entity offers to them and paying, withhoiding, unO transmitting payroll taxes, providing unemployment insurance and workers' compensation benefits, and handling unemployment and workers' compensation claims involving the Employees.

2.2.3. Contrqcts. Engage and contract with third-party vendors, service providers, and consultants for the provision of services in connection with the Operations; provided, that, for any such contract that names the Licenses and/or Company, Management Entity shall obtain the prior written approval of Company which shall be delivered within two (2) business days and shall not be otherwise unreasonably withheld, conditioned or delayed.

2.2.4. License Maintenance. Request of Company to take any action in furtherance of maintaining the status and/or validity of the Licenses for which Company shall have the final decision regarding *h"th"r to take such action, however Company shall not unreasonably refuse to take such action.

2.2.5. Premises Maintenance. Entering into contracts for necessary services, including water, electricity, gas, telephone, vermin extermination, and other necessary services'

2.2.6. Supplies. Placing orders for any equipment, tools, appliances, materials, and office supplies that are necessary to properly maintain the Operations'

2.2.'7 . Premises.Create, in conjunction with Company, plans related to Premises security, ingress/egress, parking, and other management procedures for utilization of Premises space, as it pertains to the Op;rations. Management Entity shall designate an individual to be the dedicated contact for Company with reipect to operational plans and ongoing inquiries and shall provide Company with a meaningful opportunity to confer on such plans prior to their implementation and will use commercially reasonable eiforts to rlspond promptly to inquiries. Any physical modification of the Premises shall be made with the consent of Compiny which shall not be unreasonably withheld. Company shall also cooperate with Management Eniity to prepare any documentation necessary to notify and/or obtain approval from the Management Services Agreement - Page 3 of l6
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-23707 4C92E0F California Department of Cannabis Control of any physical modifications to the Premises as required under the State Regulations. Contracting for and overseeing capital improvements to the Premises in accordance with the Lease and all applicable building codes'

2.2.8. Security Personnel. Contracting for and overseeing all security personnel for the Premises at a minimum as required by applicable Law, including but not limited to, the State Regulations.

2.2.g. Legal Services. Engage and contract with legal services providers for the drafting, negotiating and reviewing of contracts, agreements and other documents; legal consultation and opinions; malntaining corporate books and records; litigation management; and regulatory compliance.

2.2.10. Accounting and Tqxes.
(a) Working in conjunction with an accountant, prepare for execution and filing by Company of all forms, reports, exemption requests, and returns required by Law in connection with unemployment 1nruran.", workers' compensation insurance, disability benefits, Social Security, franchise tax, income tax, any taxes specific to the operation of a cannabis business, and other similar taxes now in effect or hereafter imPosed;
(b) Provide or cause to be provided, accounting services, including, but not limited to: (i) accounting support services to assist in the maintenance of a system of accounting for Company, (ii) the pieparation oi audited and unaudited balance sheets, statements of income and results of operations and caih ilows in forms that are reasonably and promptly approved by Company, and (iii) assistance in preparation ofregular budgets.
(c) Review and maintain Company comprehensive system of books and records, including books ofaccount and financial records and contracting for annual audits thereofin accordance with all reporting requirements;
(d) Administer all accounts payable and accounts receivable, using reasonable commercial efforts to ensure timely collection of all amounts due and timely payment of all amounts due, provided Company makes sufficient funds available therefor; (e) Create, review, oversee, and administer all capital, operating, and cash flow projections and budgets;
(D Provide strategic management advisory services including, but not limited to, review and analysis of historical financial statements and budgets to ensure targets are achieved, compiling financial data for preparation of sales, costs and gross margin reports and other metrics related to th'e cannabis industry including efficiency analysis, in-store sales analysis and other strategic analysis; and

2.2.11. Payment of Expenses. Causing the Expenses (defined below) to be paid.

2.2.12. IT Services. Provide information and technology ("1I") services including, but not limited to, management and maintenance of IT resources and staffing to support IT needs, management of information r".*ity and communications systems, database support, disaster recovery, support of core systems, support of maintenance contracts, equipment and software, and organization of an IT helpdesk.

2.2.13. Insurance. Assist with obtaining and maintaining all forms of insurance needed to adequately protect Company, its members, managers, directors, officers, employees, as their respective inteiests may appear (or as required by Law), including workers' compensation insurance, liability insurance, fiie and extended coverage insurance, and burglary and theft insurance. Supervise claims and support of compliance functions.

2.2.14. Advertising and Marketirg. Provide services that involve the promotion and advertising of Company, including, but not limited to, print, radio, and social media, along with any promotions that are allowed under applicable Law.

Management Sewices Agreement - Page 4 of 16
Docusign Envelope lD: 4'l 8F3F30-DF03-41 D3-9D02-23707 4C92EOF

2.2.15. Other. Such other management and administrative services which the Parties shall mutually determine are necessary for the efficient operation of the Operations.

2.3. Limitation of Authority; Independent Contractors. This Agreement is not one of agency between Management Entity and Company, but one in which Management Entity is engaged to provide management oversight and administration support services as an independent contractor. All employment arrangements are therefore solely Management Entity's concern, and Company shall not have any liability with respect thereto except as otherwise expressly set forth herein.

3. Company's Responsibilities. Commencing on the Commencement Date, Company will have the following reiponsibilities (and such responsibilities shall be undertaken promptly and with meaningful communication to Management Entity):

3.1. Ensuring that all of its directors, officers, employees, agents, and contractors are aware of Management Entity's authority and responsibilities as articulated in this Agreement and that such persons comply with the directions of Management Entity in accordance with this Agreement.

3.2. Ensuring that all of its directors, officers, employees, agents, and contractors who may have some responsibility under or authority on behalf of Company take any and all actions necessary to maintain Company, its licenses, permits, registrations, and other entitlements, including but not limited to, the Licenses, in good standing and to cause Company to comply with all laws and regulations regarding commercial cannabis businesses under applicable Law.

3.3. The Parties acknowledge that Management Entity must be listed as an "Owner" on the Licenses and that Company is responsible for confirming the Licenses have been amended to list Management Entity (the "License Amendmeff ").

3.4. Each manager of Company shall: (a) provide Management Entity with such information, that is reasonably necessary for the effective performance of the Management Services, or otherwise necessary for Management Entity to conduct the Operations; (b) promptly approve or disapprove the any budgets, contracts and other agreements in a timely manner.

3.5. Company shall provide Management Entity with such information, that is reasonably necessary for the effective performance of the Management Services.

3.6. Unless otherwise delegated to the Management Entity elsewhere in this Agreement, Company or shall take any and all necessary and prudent steps to satisfy any reasonable obligation n"ceisury for the continued operation of the Operation, which may include the payment of Expenses not attributable to the Management Entity.

3.7. Company shall refrain from entering into any contract that would constitute a Material Contract without first obtaining Manager Entities prior written consent, which shall not be unreasonably withheld.

3.8. During the Term, Company shall not make, either directly or indirectly, whether in cash, property, or in obligations, (A) any payment on, or declare or pay any dividend with respect to, or make any payment on account of, any equity interest of Company, whether now or hereafter outstanding; (B) any ,ep*chare, redemption, retirement, defeasance, sinking fund or similar payment, purchase or other aiquisition for value, direct or indirect, of any equity interest of Company, now or hereafter outstanding; (Cj any payment to retire, or to obtain the surrender of, any outstanding warrants, options or other rights for the puichase or acquisition of shares of any class of equity interest of Company, now or hereafter outstanding, or (D) any payment of any management, consulting, monitoring or advisory fees or any other fees or expenses pursuant to any undisclosed Material Contracts or Affiliate Expense.

4. Management Entitv's Responsibilities. Commencing on the Commencement Date, Management Entity will have the following responsibilities (and such responsibilities shall be undertaken promptly and with meaningful communication to Management Entity):

Management Services Agreement - Page 5 of 16
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-23707 4C92EOF

4.1. Notice of Authority. Ensuring that all of its directors, officers, employees, agents, and contractors are aware of Management Entify's authority and responsibilities as articulated in this Agreement.

4.2. Receivership Access. Subject to all applicable Laws, ensuring that the Receiver and any of his managers, attorneys, accountants, employees, agents, representatives, partners, andlot other advisors, shall have access to the propefi atall times, with or without the presence of the Management Entity's representativ es; provided, that, Receiver will provide no less than 24-hours advance notice and such visit shall not materially interfere with the business being conducted on the property.

4.3. License. Management Entity shall maintain the Licenses and comply with all local and State rules and regulations. Prior to the Commencement Date, Management Entity shall provide Receiver with all information necessary to notif the Department and the City of the Management Entity's involvement in the direction, management, and control of the Licenses. Management Entity shall promptly comply with any requests for further information from the Department or the City.

4.4. Taxes. Notwithstanding anything in this Agreement to the contrary, Management Entity shall be responsible for preparing or causing to be prepared and filed any and all tax retums and for the payment of all taxes arising from the Operations. Any and all tax returns shall be filed in compliance with aliapplicable laws including, but not limited to, Federal Internal Revenue Service Code Section 2808 and California Tax Regulation 3802.

4.5. Insurance. Management Entity shall maintain commercial general liability insurance consistent with Management Entities' other cannabis retail operations (and in no case in amounts less than required by applicable Law), with financially sound and reputable insurance companies, as may be required from time-to-time by the applicable State Regulations and or other applicable state and local laws, and such other insurance in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses as Company's Operations which are operating in the same or similar locations, including, without limitation, errors and omission, product, worker's compensation, and general liability insurance. All insurance policies of Management Entity shall, as appropriate, name Company as an additional insured thereunder as its interests may appear, and shall contain a loss payable clause or endorsement, satisfactory in form and substance to each that names the other as the loss payee thereunder.

All policies of insurance shall provide for at least thirfy (30) days prior written notice to the additional insuied of any modifications or cancellation of such policy. For clarity, Management Entity is responsible for all insurance-related costs.

5. Financial Terms.

5.1. Consideration. As consideration for the performance of the Services, and commencing on the Commencement Date, Management Entity shall receive all income from the Operations and be responsible for paying all expenses incurred including, but not limited to the following (collectively, the "Eipenses"): (i) rent and/or mortgage; (ii) utilities; (iii) security; (iv) State and local licensing fees; (v) State and local taxes; (vi) cost of goods; (vii) insurance, including but not limited to worker's compensation insurance and liability insurance; (viii) maintenance and cleaning costs; (ix) all actual costs associated with payroll and payroll processing including, but not limited to health and welfare benefits and coverage, monthly base salary, associated employer payroll taxes and matching 401(k) contributions; (x) advertising, promotion, and marketing expenses; (xi) bank service charges; (xii) dues and subscriptions; (xiii) GPS permit fees; (xiv) interest expenses; (xv) late fees or penalties; (xvi) office supplies; (xvii) postage and ihipping; (xviii) professional fees, including but not limited to Company-specific accounting, legal and consulting fees; (xix) internet and telephone charges; (xx) business software; (xxi) other liabilities that may arise in thi normal course of business, and (xxii) other miscellaneous office expenses directly arising from the Operations. If, after payment of Expenses, there is any profit, said profit shall be payable to Management Entify. Ii after payment of Expenses, there is a loss, said losses shall be paid by Management Entity.

Notwithstandingthe foregoing, the Expenses shall exclude any Affiliate Expenses, undisclosed Material Management Services Agreement - Page 6 of 16
Docusign Envelope lD: 41 8F3F30-DF03-4 1 D3-9D02-237074C92E0F Contracts, or any such cost, obligations, liabilities, and expenditures arising or relating to events occurring prior to the Commencement Date. The Parties agree to cooperate to pro-rate the Expenses incurred prior to and after the Commencement Date. All Expenses prior to the Commencement Date shall be the responsibility of the Company. All Expenses on and after the Commencement Date shall be the responsibility of the Management Entity.

5.2. Receipts: Banking.

5.2.1. Alt income derived from the Operations (except tax revenue collected from customers as set forth in this Section 5.2.2), shall be paid directly into a bank account held by the Company to which Management Entity has "signing authority" rights sufficient to allow Management Entity to provide the management services contemplated by this agreement (the "Companv Operating Account").

The Company Operating Account shall be used to pay the Expenses of the Operations.

5.2.2. All tax revenue collected from sales to customers (e.g., California cannabis excise tax, sales and use tax, local taxes, etc.) shall, on a weekly basis, be paid directly into a bank account held by the Company (the "Company Tax Account"). The Company Tax Account shall be used by the Company to remit payment to the appropriate tax agency.

5.2.3. If events not reasonably in the control of either Party (i.e., the unilateral action of an applicable banking institution) necessitate a change to the provisions set forth in this 5.2 in order to maintain the status qJo operation of the Operations, the Parties agree that the Receiver shall have the sole authority to open a ne* Company Tax Account and a new Company Operating Account following written notice and meaningful discussion regarding the same.

5.3. Inventory. The Parties agree that the Management Entity will provide, at its sole expense, the Cannabis Products ior the Operations ("Inventory"). All current Cannabis Products located at the Premises will be remain on the Premises and Management Entity shall be entitled to the proceeds from the sale thereof. All products to be sold at the Premises shall be marketed and sold in a manner consistent with the policies of Management Entity or its Affiliates in its other cannabis retail businesses. In no event shall Management Entity luit to pay any vendor for Cannabis Products within the time period agreed to for payment by such Vendor.

5.4. Monthly Reports. Within thirty (30) days following a written request from the Receiver, Management Entity shall furnish Receiver with a statement showing all income, Expenses, operating costs, mana[ement fees, etc. and the total payments made by Management Entity with respect thereto during the previJus month ("Monthly Statement"). Unless Receiver raises any objections to Management Entity's Monthly Statement within ten (10) days after receipt of the same, such statement shall conclusively be deemed correct and no party shall have no right thereafter to dispute such statement or any item therein or the computation. If Receiv.r do"s object to such Monthly Statement, then Management Entity shall provide Receivei with reasonable verification of the figures shown on the Monthly Statement and the Parties shall negotiate in good faith to resolve any disputes.

5.5. Audits. Each Party shall maintain all office records and books of account for a reasonable amount of time (not to be less than as required by applicable Law), and shall record therein, and keep copies of, documents pertaining to expenses incurred and revenues received in connection with the maintenance and Operationi which ielate to a Parly's respective Expenses and obligations. Such records shall be maintained in accordance with all reporting requirements with which Management Entity and its affiliates must comply in accordance with applicable Law. Subject to Section 5.4, either Party shall have access to and the rigtlt to audit and make independent examinations of such records, books and accounts and all vouchers,
-files
and all other material pertaining directly to the Operations and this Agreement' Each Party shall provide any and all records reasonably requested by the other Party or its auditors' or as needed in orderio comply with review from regulators and the other Party's lender(s) as may be reasonably designated from time-to-time by such PartY.

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5.6. Taxes. Management Entity shall be responsible for payment of all taxes arising from the Operations, but incuned on and after the Commencement Date. As set forth in Section 5.2, Management Entity shall ensure the Company Operating Account, and/or Company Tax Account, if applicable, has sufficient funds to pay all taxes so the Company can timely remit payment to applicable agencies. California cannabis excise taxes shall be calculated as set forth in the Tax Regulation 3802, or relevant regulation, as may be amended.

6. Term and Termination.

6.1. Term. lJnless the Parties agree, in writing, the term of this Agreement (the "Term") will commence on the Effective Date and shall continue until the City informs the Parties, in writing, that the Local Authofizationhas been issued to Management Entity as the Owner ("Change of Ownership"). Upon the Change of Ownership, this Agreement will terminate, shall be null and void and shall have no further force and effect, except as specifically set forth in this Agreement.

6.2. Termination Notwithstanding Section 6.1, this Agreement may also terminate as follows:

6.2.1. In the event that a Party takes an action which could reasonably be expected to cause a permanent revocation of the Licens es; provided, however, that, if the defaulting Party cures such action within the period provided to cure such action in accordance with such determination, then the nondefaulting Party shall not be permitted to terminate the Agreement under this Section;

6.2.2. In the event the Licenses have been suspended, revoked, or the appropriate licensing body denies or refuses, in writing, to process Change of Ownership, and such revocation or denial is final, unappealable and not attributable to a circumstance contemplated by Section 6.2.1;

6.2.3. Upon the mutual written agreement of the Parties by an instrument signed by duly authorized representatives of both Parties;

6.2.4. Any fraud or willful misconduct performed by either Party;

6.2.5. In the event of a material breach of this Agreement remains uncured for more than thirty (30) days after the receipt of written notice by the non-breaching Party or if such breach cannot reasonably be cured in such thirty (30) days, breaching Party fails to commence or diligently pursues to cure to the reasonable satisfaction ofnon-breaching Party;

6.2.6. Any act of gross negligence performed by either Party under this Agreement; provided, however, that, if the defaulting Party cures, at its own expense, such act within thirty (30) days ifter such determination, non-defaulting Party shall not be permitted to terminate the Agreement under this Section;

6.2.7. The termination of that certain APA, entered by and among the Company and Management Entity;

6.2.8. In the event that, after taking all reasonable steps, including the timely submission of all relevant documents, a Change of Ownership has not occurred within one (l) year of the date of this Agreement;

6.2.9. In the event that Management Entity fails to pay all Expenses within thirty (30) days ofbeing invoiced;

6.2.10. If Management Entity fails to pay any licensing fees prior to the due date for any renewal;

6.2.11. If Management Entity fails to provide Receiver with access to the Premises in accordance with the terms hereof;
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Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-237 07 4C92EOF

6.2.12. In the event that Management Entity fails to properly calculate and/or pay taxes due to any local, State or federal agency, as determined in the sole (but reasonable) discretion of the Receiver.

Notwithstanding the foregoing, neither Party will terminate this Agreement without meaningful discussions with the other Party.

6.3. Effect of Termination.

6.3 .1 . On termination or expiration of this Agreement pursuant to Section 6. I or 6.2, all rights and obligations under this Agreement shall be extinguished, except as set forth in Section I l.l. In the event of the termination or expiration of this Agreement in accordance with this Section 6, the Parties shall cooperate to remove Management Entity as a financial interest holder, ooowner", and/or "manager" from the Licenses, and each Party shall promptly provide all reasonable assistance in order to effect such changes to retum the Licenses to the ownership status which existed immediately prior to the Change of Ownership. This sub-section shall survive the expiration or termination of this Agreement.

6.3.2. Upon the earlier termination or expiration of this Agreement pursuant to Section

6.1 or 6.2,the Parties will mutually agree upon an inventory disposition and wind-down plan which provides for: (a) the settlement by Management Entity of all outstanding accounts payable associated with any inventory, and (b) the sale of remaining inventory to Company or a third-party as permitted by Law.

6.3.3. Upon the earlier termination or expiration of this Agreement, all funds in Company Operating Account properly attributable to the Services or deposited by Management Entity shall be returned or paid to the appropriate Party within seven (7) business days. The Parties shall work together in good faith to account and determine the extent to which the funds in the Company Operating Account are properly attributable to the Management Entity or the Company.

7. RenresentationsandWarranties.

7.1. Mutual Representations and Warranties of the Parties. Each Party hereby represents and warrants to the other that as of the Effective Date and throughout the Term: (i) it is in good standing and is authorized to conduct business in the state of its formation; (ii) it has the authority under applicable laws, rules and regulations, specifically excluding any federal statutes, rules or regulations prohibiting the sale, cultivation, processing or possession of cannabis (collectively, "LEIde") to execute, deliver, and perform this Agreement, and to incur its obligations provided for under this Agreement; (iii) its actions under this Agreement have been and will be duly and validly authorized, and it will adopt any and all further resolutions or expenditure approvals required for execution of this Agreement; (iv) it will comply with all applicable Laws in its performance of its obligations under this Agreement; and (v) except for the Case, there are no pending actions, claims, suits or proceedings, or to its knowledge, threatened or reasonably anticipated against or affecting it, which if adversely determined, would have a material adverse effect on its ability to perform its obligations under this Agreement.

7.2. Representations, Warranties, andCovenants of Company. Company represents, warrants, and covenants that, as of the Effective Date and throughout the Term:

7.2.1. it holds and shall maintainthe Licenses and any and all other necessary permits, qualihcations, authorizations and consents necessary to enable the Operations as contemplated by this Agreement, including having the required permits, licenses, authorizations or consents necessary to sell Cannabis Products; and

7.2.2. it shall not take, or fail to take, any action which would reasonably be expected to:
(a) have a materially adverse effect on the status, validity or standing of the Licenses, (b) affect the operations ofthe Operations, or (c) affect Management Entity's ability to perform its obligations or exercise its rights under this Agreement.

Management Services Agreement - Page 9 of l6
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-23707 4C92E0F

7.3. Representations, Warranties, and Covenants of Management Entity. Management Entity represents, waffants, and covenants that, as of the Effective Date and throughout the Term, it shall not intentionally take, or fail to take, any action which would reasonably be expected to have a materially adverse effect on the: (a) status, validity or standing ofthe Licenses; (b) the operations ofthe Operations; or (c) Company's ability to perform its obligations or exercise its rights under this Agreement.

8. Disclaimer of Further Wananties.

8.I. EXCEPT AS OTHERWISE SET FORTH EXPLICITLY HEREIN, NEITHER PARTY

MAKES ANY REPRESENTATION OR WARRANTY OF ANY KIND, AND HEREBY DISCLAIMS

ANY AND ALL WARRANTIES, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT, TITLE, OR ANY WARRANTY ARISING FROM USAGE OR TRADE, COURSE

OF DEALING OROTHERWISE BY IMPLICATION TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW.

8.2. The Parties hereby acknowledge and agree that (i) they are sophisticated business entities that have entered into this Agreement for the limited purposes set forth in this Agreement and that the rights and obligations of the Parties are contractual in nature; and (ii) they have not made any warranties or guarantees of any nature with respect to the economic, financial, or other results that may be obtained or experienced by one another.

8.3. Management Company acknowledges and agrees that it is Management Company's sole responsibility investigate whether the City will allow a Change of Ownership and to provide the City with all information necessary for a Change of Ownership. Management Company acknowledges and agrees that that Receiver has not made any representation or warranty that a Change of Ownership is or will be permitted by the City.

9. Indemnification and Liquidated Damages.

9.1. By Company. Company agrees to defend, indemnify and hold harmless Management Entity, its affiliates, its licensors, and each of their officers, directors, members, managing members, managers, partners, employees, attomeys agents and other representatives from and against any and all claims, costs, damages, judgments, decrees, fines, penalties, liabilities and expenses (including reasonable attorneys' fees and litigation costs) arising out of any claim arising or alleged to arise from, relating to or in connection with: (i) Company's or any of its officers', directors', members', managing members', managers', partners', employees', attorneys', agents' and other representatives' (collectively, the "een[p.ry_P44.i.e!.") breach or alleged breach of this Agreement or violation of applicable Law; (ii) Company's or the Company Parties' gross negligence or intentional misconduct; (iii) Company's or the Company Parties' conduct of the Operations prior to and up to an including the Effective Date, including but not limited to, the use and operation of the Licenses; (iii) Company's Expenses prior to the Commencement Date, including but not limited to, the Operations and the use and operation ofthe Licenses; or (iv) Company's or the Company Parties' infringement of any third party's intellectual propefty rights.

9.2. By Management Entity. Management Entity agrees to defend, indemnify and hold harmless Company and the Company Parties from and against any and all claims, costs, damages, judgments, decrees, fines, penalties, liabilities and expenses (including reasonable attorneys' fees and litigation costs) arising out of any claim brought by any third party in connection with: (i) Management Entity's infringement of any third-party's intellectual properfy rights; (ii) Management Entity's breach or alleged breach of this Agreement or any applicable Law in its performance of the Agreement; (iii) Management Entity's gross negligence or intentional misconduct in its performance of this Agreement; or (iv) actions taken directly by any employees of Management Entity.

9.3. Procedure. Any claim for indemnification pursuant to this Section 9 must be provided promptly in writing by the indemnified Parfy to the indemniffing Party; provided, that, the indemnified Management Services Agreement - Page I 0 of I 6
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-23707 4C92EOF Parfy's failure or delay providing such written notice will not relieve the indemnifying Party of its indernnification obligation hereunder except and only to the extent that the indemnifuing Party is prejudiced as a result of such failure or delay. The indemnifying Party shall have sole discretion over the defense of such claim, provided that it shall not settle such claim whereby any indemnified Party must pay any compensation or admit any tiability, or the settlement imposes any other obligation or liability without the indemnified Party's prior written authorization. The indemnified Parfy may, at its own cost, retain its own legal counsel. At the indemnising Pafi's costs, the indemnified Party shall provide reasonable cooperation to the indemnifying Parfy in the defense of the indemnified claim.

9.4. Liquidated Damages From Management Entity. IN ADDITION TO THE

CONTRACTUAL RIGHTS AND REMEDIES OF COMPANY AVAILABLE AT LAW OR IN EQUITY,

THE PARTIES HEREBY ACKNOWLEDGE AND AGREE THAT THE AMOLINT OF COMPANY'S

DAMAGES IN THE EVENT OF THE PERMANENT (IN EACH CASE) DISQUALIFICATION,

SUSPENSION, AND/OR REVOCATION OF COMPANY'S LICENSES, AS THE PRIMARY AND

DIRECT RESULT OF THE BREACH OR DEFAULT OF THIS AGREEMENT BY MANAGEMENT ENTITY, OR ANY AFFILIATE OF MANAGEMENT ENTITY, OR THE PzuMARY AND DIRECT

RESULT OF ANY ACTION OF MANAGEMENT ENTITY AND/OR ITS OFFICERS, DIRECTORS,

MANAGERS, MEMBERS, EMPLOYEES, ATTORNEYS, AGENTS AND/OR ASSIGNS (COLLECTIVELY, "MANAGEMENT ENTITY REPRESENTATIVES"), WOULD BE DIFFICULT OR IMPOSSIBLE TO DETERMINE. THE PARTIES HEREBY ACKNOWLEDGE AND AGREE THAT IN

THE EVENT OF SUCH A BREACH, DEFAULT OR ACTION WHICH DIRECTLY RESULTS IN THE

PERMANENT DISQUALIFICATION, SUSPENSION, AND/OR REVOCATION OF COMPANY'S

LICENSES AS SET FORTH HEREIN, MANAGEMENT ENTITY SHALL PAY COMPANY THE SUM oF TEN THOUSAND DOLLARS ($10,000), LESS ANY AMOUNT RECEIVED LTNDER THE APA.

THE PARTIES AGREE THAT THE AMOUNT SET FORTFI IN THIS SECTION 9.4 AS THE AGREED DAMAGES FORTHE OCCURRENCE OF THE EVENTS DESCRIBED IN THIS SECTION 9.4IS THE

PARTIES' BEST AND MOST ACCURATE ESTIMATE OF THE DAMAGES COMPANY WOULD

SUFFER IN THE EVENT OF SUCH PERMANENT DISQUALIFICATION, SUSPENSION, AND/OR

REVOCATION OF THE LICENSES AND THAT SUCH ESTIMATE IS REASONABLE LINDER THE

CIRCUMSTANCES EXISTING AS OF THE DATE OF THIS AGREEMENT AND UNDER THE

CIRCUMSTANCES THAT THE PARTIES REASONABLY ANTICIPATE WOULD EXIST AT THE TIME OF SUCH BREACH.

10. Confidentiality.

10. I . Access to Con/idential Information. The Parties agree and acknowledge that as a result of this Agreement, each Party will receive and have access to information, including, without limitation, information: (a) identified by the disclosing Party as confidential, or (b) is reasonably understood by the receiving Party to be confidential, and includes, but is not limited to, all information not generally known to the public, in spoken, printed, electronic or any other form or medium, relating directly or indirectly to a Party's business processes, owners, financial interest holders, controlling persons, practices, methods, policies, plans, publications, documents, research, operations, services, strategies, techniques, agreements, contracts, terms of agreements, transactions, potential transactions, negotiations, pending negotiations, work-in-process, databases, manuals, records, material, sources of material, supplier information, vendor information, financial information, results, accounting information, accounting records, marketing information, pricing information, design information, payroll information, personnel information, supplier lists, vendor lists, developments, reports, internal controls, security procedures, market studies, sales information, revenue, costs, formulae, product plans, designs, styles, models, ideas, specifications, customer information, customer lists, client information, client lists, manufacturing information, distributor lists, buyer lists, intellectual property, improvements and both the existence and the terms of this Agreement. Each Party covenants and warrants to the other Party that it will not disclose or divulge Confidential Information except to the extent: (i) required by applicable Law, (ii) to protect its interests in Management Services Agreement - Page I 1 of I 6
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-23707 4C92E0F any dispute or litigation, (iii) necessary to perform its obligations under this Agreement, or (iv) if such information becomes publicly available without breach of this Section 10.1. The Parties' obligations under this Section 10.1 will survive any termination or expiration of this Agreement. Management Entity shall, and .hall cause its officers, directors, managers, principals, members, employees (including the Employees), agents and representatives (collectively, "Representatives") to comply with these confi dentiality provisions.

10.2. Injunctive Relief. The Parties hereby acknowledge that breach of the covenants contained in this Section will cause irreparable harm to the non-breaching Party. Notwithstanding any other provision of this Agreement, aParIy rnay enforce the above-described covenants and warranties by injunction, both preliminary and permanent, without the posting of any bond. Nothing herein will be construed as prohibiting a Party from pursuing any other legal or equitable remedy available due to the breach of the provisions of this Agreement. The failure by either Party to adhere to any of the terms of this Section l0 will be a material breach of this Agreement.

I 1. Miscellaneous Provisions.

11.1. Survival.ThetermsandconditionsstatedinSection5, s-3,8,9 10, 11.8, ll.1l and ll'15 shall survive the expiration or earlier termination of this Agreement'

11.2. Counterparts. This Agreement may be executed in one or more counterpafts, including by digital signature or portable document format (.pdf) delivery, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. The Parties agree and acknowledge that delivery of a signature by digital signature or in .pdf form shall constitute execution by such signatory.

I 1.3. Invatidity.ln the event that any one or more of the provisions contained in this Agreement or in any other instrument referred to herein shall, for any reason, be held to be invalid, illegal or unenforclable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or any other such instrument, and such invalid, illegal or unenforceable provision shall be interpreted so as to give the maximum effect of such provision allowable by applicable Law.

11.4. Additionat Documents. Each of the Parties hereto agree to execute any document or documents that may be requested from time-to-time by the other Party to implement or complete such Party's obligations pursuant to this Agreement and to otherwise cooperate fully with such other Party in connection with the performance of such Party's obligations under this Agreement.

I 1.5. Notices. All notices required or permitted by this Agreement or by applicable Law will be in writing and deemed duly served, delivered, and received when personally delivered to the Party to whom directed or by nationally recognized ovemight courier. Delivery by electronic mail as indicated below will constitute personal delivery if receipt of delivery is capable of confirmation. Either Parfy may change this address by giving written notice of the change to the other Party as provided herein.

To Company: Element 7 Firebaugh LLC
c/o Kevin Singer, Court-Appointed Receiver
Receivership Specialists
11500 W. Olympic Blvd, Suite 530
Los Angeles, California 90064
As to Management
Entity:

Email: [email protected]
i ackson@receivershipspecial ists. com
NUG Inc.
2601 C Blanding Ave., Suite 408
Management Services Agreement - Page l2 of I 6
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-237 07 4C92EOF Alameda, CA 94501
Email: [email protected]
Russell. [email protected]

11.6. Waiver. The failure of either Party at any time to enforce any of the provisions of this Agreement will not be deemed or construed to be a waiver of any such provision, nor in any way to affect the validity of this Agreement, any provisions hereof or the right of either Party to thereafter enforce each and every provision of this Agreement. No waiver of any breach of any of the provisions of this Agreement will be effective unless set forth in a written instrument executed by the waiving Party; and no waiver of any such breach will be construed or deemed to be a waiver of any other or subsequent breach except as otherwise noted therein. Failure of either Party to require the performance of any term in this Agreement will not prevent subsequent enforcement of such term nor be deemed a waiver ofany subsequent breach.

11.7. Relevant Laws. Company operates a cannabis business in the State of California. The Parties hereby acknowledge that they understand:

11.8. Federal Law.The cultivation, sale, manufacture, processing, or possession of cannabis, which is considered a Schedule I narcotic pursuant to 2l U.S.C. $ 8l l, et seq., short titled the Controlled Substance Act and all applicable regulations promulgated thereunder, is prohibited by Federal law.

11.9. State Lqw. Recreational and medicinal cannabis has been legalized in the State of California since January 1,2018, pursuant to the passage of Proposition 64, the adoption of the Medicinal and Adult-Use Cannabis Regulation and Safety Act and the implementation of the State Regulations.

11.10. Tax Liability. As cannabis is a Schedule I narcotic, pursuant to 26 U.S. Code $2808, cannabis businesses cannot take any deduction or credit for any amount paid or incurred during the taxable year.

I 1 . I I . Forfeiture. The Federal government could begin forfeiture, civil, or criminal proceedings against any cannabis business, its owners, officers, directors, agents, affiliates, and/or investors.

11.12. Entire Agreement.ThisAgreement, including exhibits and appendices, constitute the entire agreement and understanding between the Parties and cancels, terminates, and supersedes any prior agreement or understandings, written or oral, relating to the subject matter hereof. There are no representations, promises, agreements, warranties, covenants, or,understandings other than those contained herein.
1 1 . I 3. Modification No modification of or amendment to this Agreement will be effective unless in a writing signed by the Parties.
ll.l4. Force Majeure.lnthe event any Force Majeure Event continues for seven (7) or more days, either Party may terminate this Agreement in accordance with the terms and conditions set forth herein.

The Parties understand, acknowledge and agree that, as of the Effective Date, no Force Majeure Event currently exists that would prevent any Party from performing its obligations hereunder. In the event that any Party claims that there is a Force Majeure Event that arises after the Effective Date, such Party shall be required to demonstrate that it did not know or could not have reasonably foreseen such Force Majeure Event prior to the Effective Date. Termination of this Agreement in accordance with this Section will be without any liability and without any cancellation charges, or fees. "Without liability" means that no money damages (including any liquidated damages identified in this Agreement) will be due by the terminating Party to the other Parfy as a result of the termination.

11.15. Choice of Law and Venue Selection. To the extent not preempted by federal law, this Agreement will be construed and interpreted in accordance with the laws of the State of California, without regard to the principles regarding conflict of laws. The provisions of any federal law prohibiting the sale, cultivation, processing or possession ofcannabis will have no bearing or effect on the construction ofthis Management Services Agreement - Page I 3 of l6
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-237 07 4C92E0F Agreement. The Parties further agree that the exclusive venue for any dispute between the Parties directly or indirectly arising out of, or that in any way relates to or is in connection with this Agreement (a "Di!pute") shall be the Court presiding over the Case, and the Parties agree to the jurisdiction and venue of the foregoing court to the exclusion of any other courts which otherwise might have had jurisdiction. The Parties further waive any right to a jury trial in connection with any dispute.

11.16. References; Headings; Interpretation. All references in this Agreement to Exhibits, Articles, Sections, subsections and other subdivisions refer to the corresponding Exhibits, Articles, Sections, subsections and other subdivisions of or to this Agreement unless expressly provided otherwise.

Titles appearing at the beginning of any Articles, Sections, subsections or other subdivisions of this Agreement are for convenience only, do not constitute any part of this Agreement, and shall be disregarded in construing the language hereof. The words "this Agreement," "herein," "hereby," "hereunder" and "hereof' and words of similar imporl refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited. The words "this Article," "this Section" and "this subsection" and words of similar import refer only to the Article, Section or subsection hereof in which such words occur.

The word "or" is not exclusive, and the word "including" (in its various forms) means "including, without limitation." Pronouns in masculine, feminine or neuter genders shall be construed to state and include any other gender, and words, terms and titles (including terms defined herein) in the singular form shall be construed to include the plural and vice versa, unless the context otherwise requires. ll.l7. Assignment.Neither Party may assign all or any portion of this Agreement to a third-party without the prior written consent of the other Party, which consent shall not be unreasonably delayed, conditioned, or withheld. Any purported assignment or transfer not in accordance with this section or any other applicable provision in this Agreement shall be deemed a material breach of this Agreement shall be null and void, and shall have no force and effect.
1 1.18. Severability. Although the restrictions contained in this Agreement are considered by the Parties to be reasonable for the purpose ofcontractual obligations, ifany such restriction is found by a court of competent jurisdiction to be unenforceable, such provision will be modified, rewritten, or interpreted to include as much of its nature and scope as will render it enforceable. If it cannot be so modified, rewritten, or interpreted to be enforceable in any respect, it will not be given effect, and the remainder of the Agreement will be enforced as if such provision were not included.

11.19. Attorney's Fees.In any action or proceeding founded on the terms of this Agreement, the prevailing party will be entitled to its legal costs and reasonable attorney's fees.

11.20. No Third-Party Beneficiaries. This Agreement is solely for the benefit of the Parties hereto and their successors and assigns permitted under this Agreement, and no provisions of this Agreement shall be deemed to confer upon any other persons any remedy, claim, liability, reimbursement, cause of action or other right except as expressly provided herein.

11.21. No Presumption Against Any Party. Neither this Agreement nor any uncertainty or ambiguity herein shall be construed or resolved against any Party, whether under any rule of construction or otherwise. On the contrary, this Agreement has been reviewed by each of the Parties and their counsel and shall be construed and interpreted according to the ordinary meaning of the words used so as to fairly accomplish the purposes and intentions of all Parties hereto.

11.22. Receivership. Receiver is not the owner of the Company. Receiver is entering into this Agreement solely in his capacity as the court-appointed receiver in the Case. Receiver is not acting in his personal capacity and no liability or obligations shall accrue to him personally or to any of his managers, attorneys, accountants, employees, agents, representatives, heirs, partners, other advisors, and/or lenders that directly or indirectly caused him to be appointed receiver in the Case. As used in this Agreement, the term "Receiver" shall mean and refer to Receiver herein named, acting solely in his capacity as receiver in the Case. Management Entity and its successors, agents, assigns, affiliates, and heirs hereby agree not to Management Services Agreement - Page I 4 of 16
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-237074C92E0F make any claim and/or seek any recourse for any actual or alleged liability against Receiver arising out of this Agreement, including but not limited to any indemnity obligations, either to Receiver personally, or against Receiver's personal assets, Receiver's partners (either general or limited), shareholders, members, managers, officers, directors, attorneys, accountants, agents, employees, advisors, heirs, or lenders that directly or indirectly caused or motioned Receiver's appointment as Receiver. [Signatures appear on the following page]
Management Services Agreement - Page I 5 of 16
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02 -237074C92E0F IN WITNESS WHEREOF, the Parties have each executed this Agreement to be effective as of the Effective Date.

COMPANY:

Element 7 Firebaugh LLC
by:
kr^^rtr S
Kevin
Soley In His Capacity as the Capacity as
Court-Appointed Receiver in Case No. 24SMCV05678

MANAGEMENT ENTITY
BY
NUG
BY
John Oram
CEO
Management Services Agreement - Page I 6 of 16
Docusign Envelope lD: 41 8F3F30-DF03-4'l D3-9D02-23707 4C92E0F

ASSET PURCHASE AGREEMENT
THIS ASSET PURCI-IASE AGREEMENT (this "Agreement") is entered into as of September 3, 2025 (the "Contract Date"), by and among Element 7 Firebaugh LLC, a California limited liability company (inclusive of the legal cannabis operations conducted thereby,'the "Business"), by Kevin Singer, acting solely in his capacity as court-appointed receiver ("Receiver") with respect to the Assets (defined below), and NUG Inc., a Nevada corporation (or an assignee thereof, "Purchaser"). Business, Receiver and Purchaser may each be referred to as a "Part5/" and collectively as the "Parties".

RECITALS
WHEREAS, the Business and the Assets are under exclusive authority of the Receiver pursuant to the Order dated April 2,2025 attached hereto and incorporated herein as E!!D!!-A (by reference as though set forth in full, the "Court Order") issued by the Superior Court of California, County of Los Angeles (the "Court") in C and H Holdings v. Element 7 CA, LLC, et. al., Los Angeles Superior Court Case No. 24SMCV05678 (the "Case"). Receiver enters into this Agreement solely in his capacity as Receiver and not in his personal capacity.

WHEREAS, the Business is entitled to operate three (3) business verticals at l2l0 12th St., Firebaugh, CA 93622 (the "Firebaugh Property") pursuant to the City of Firebaugh's Commercial Cannabis Regulatory Permit and Development Agreement pursuant to Resolution No. PZ21-07 (the "Development Agreement") and: (i) License No. C10-0000974-LlC (the "Retail License"); (ii) License No. CI1-OOOISZZ-UC (the "Distribution License"); and (iii) License No. DCC 10004731 (the "Manufacturing License" and collectively with the Retail License, and the Distribution License, the "Cannabis Licenses").

WHEREAS, Purchaser intends to purchase, accept and acquire the following assets of the Business (the "Assets"): (i) the Development Agreement; (ii) all saleable inventory at the Firebaugh Property as of the Contract Date; and (iii) all furniture, fixtures and equipment at the Firebaugh Property as of the Closing Date or used in connection with the operation of the Business; WHEREAS, Purchaser desires to purchase from the Business, and the Business desires to sell to Purchaser the Assets;
WHEREAS, the Parties understand, acknowledge and agree that the transfer of the Development Agreement is subject to certain local approval (the "Local Approval"), and that Purchaser shall need to obtain state approval for issuance of new Cannabis Licenses (the "State Approvals", and collectively with the Local Appioval, the "Regulatory Approvals"), and that while Receiver shall assist Purchaser with the Local Approvals, Purchaser shall be responsible for securing the State Approvals; WHEREAS, it is the intention of the Parties that the Assets will be sold free and clear of any Encumbrances through the sale, transfer and assignment of the Assets by the Business (through Receiver) to Purchaser pursuant to the receivership laws of the State of California; WHEREAS, this Agreement is subject to the Court's issuance of an order confirming and approving this Agreement (the "Sale Order").

AGREEMENT
NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements set forth in the recitals above and in the body of this Agreement, upon the terms and subject to the conditions hereinabove and hereinafter set forth, the Parties agree as follows:

DEFINITTONS
The followin g capitalized terms used in this Agreement shall have the meanings set forth below I of 15

PURCHASE AND SALE AGREEMENT
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-23707 4C92E0F A. "Actions" means any claim, action, suit, arbitration, audit, hearing, litigation, proceeding, or suit (whether civil, criminal, administrative, investigative, or informal) commenced, brought, conducted, or heard by or before any Governmental Authority or arbitrator.

B. "Business Day" means any day that is not a federal holiday or a Saturday, a Sutrday, or other day on which banks are required or authorized by Law to be closed in the State of California.

C. "City" means the City of Firebaugh, including all of its departments, officers and agents.

D. "Closing" means the consummation of the Transactions.

E. "Closing Date" means the date on which the Closing occurs, such that transfer of the Assets to Purchaser is final.

F. "Consent" mealls any approval, consent, ratification, waiver, or other authorization from any Person (including any approvals under applicable Law).

G. "Contract" means any oral or written contract, commitment, purchase order, mortgage, instrument, indenture, sales order, license, lease, or other agreement or arrangement.

H. "Control" (including the terms "controlled by" and o'under common control with"), with respect to the relationship between or among two or more Persons, means the possession, directly or indirectly or as trustee, personal representative, or executor, ofthe power to direct or cause the direction of the affairs or management of a Person, whether through the ownership of voting securities, as trustee, personal representative, or executor, or by contract, credit arrangement, or otherwise.

I. "Encumbrance" means any, known or unknown, fixed or contingent, matured or unmatured, legal or equitable, claim, lien, pledge, charge, mortgage, security interest, hypothecation, deed of trust, righi of easement, right of way, covenant, restriction (including on use or transfer), prior assignment, option, right of first refusal or preemptive right, leasehold interest, conditional sale or other title retention agreement, reservation, assessment, tax, or other burden or adverse interest of any kind, whether arising by contract, statute, or otherwise. The term also includes any "claim" as defined in I I U.S.C. $ l0l(5), and any other encumbrance or defect in title of any nature whatsoever, whether known or unknown, fixed or contingent, matured or unmatured, legal or equitable.

J. "Governmental Authorit5r" means any federal, national, supranational, state, provincial, local, or other government, governmental, regulatory, or administrative authority, agency, commission, self-regulatory organization or any court, tribunal, orjudicial or arbitral body.

K. o'Governmental Order" means any order, writ, judgment, injunction, decree, stipulation, determination, or award entered by or with any Governmental Authority' L. "Investigation" means any inquiry or investigation (whether civil, criminal, administrative, investigative, or informal) commenced, brought, conducted, or heard by or before any Governmental Authority or arbitrator.

M. "Law" means: (i) the common law of any state, province or territory, or any provision of any foreign, federal, state, provincial or local law, statute, rule, code, ordinance, regulation, treaty, Governmental Order, permit, or other codified requirement of any Governmental Authority applicable to the relevant Person or its properties; and (iD the constitution, by-laws, rules, regulations, orders, regulatory circulars, customs, and usage of any foreign, federal, or state governmental, regulatory, or self-regulatory organization, in each case havingjurisdiction over the relevant Person or its properties. The definition of o'Ilaw" shall not include any U.S. federal law, civil, criminal or otherwise, that is directly or indirectly related to the cultivation, harvesting, production, processing, marketing, distribution, sale, transfer, possession, and,/or use of cannabis, marijuana, or related substances, including without limitation, the prohibition on drug trafficking under the Controlled Substances Act (21 U.S.C. section 801, et seq.), the fonspiracy statute under 18 U.S.C. section 846, the bar against aiding and abetting the conduct of an offense 2ofl5
lnitial
PTJRCHASE AND SALE AGREEMENT In
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-237 07 4C92E0F under l8 U.S.C. section 2, the bar against misprision of a felony (concealing another's felonious conduct) under 18 U.S.C. section 4, the bar against being an accessory after the fact to criminal conduct under l8 U.S.C. section 3, and the federal money laundering statutes under l8 U.S.C. sections 1956, 1957, and 1960, and in each case, any violation of federal law relating thereto, or arising, derived or resulting therefrom.

N. "Person" means any individual, proprietorship, partnership, firm, corporation, limited liability company, association, trust, unincorporated organization, Govemmental Authority or other entity.

O. "Receiver Account" means that account of Receiver further described (inclusive of wire instructions) on $!![il-E (attached hereto and incorporated herein). The Receiver Account shall be a segregated, FDlC-insured "Receivership Estate" bank account opened in Receiver's name only and in Receiver's capacity as the Court's receiver. The Receiver Account shall be held at a nationally recognized banking institution licensed to conduct business in California selected by Receiver in his sole but reasonable discretion.

P. "Transactions" means the transactions contemplated by this Agreement.

PURCHASE AND SALE OF ASSETS AND ASSUMPTION OF LIABILITIES Subject to the conditions set forth below and at the Closing, the Business (by and through Receiver) will sell and deliver to Purchaser, and Purchaser will purchase from the Business, the Assets, together with all rights and privileges appurtenant thereto, free and clear ofany and all Encumbrances.

III. PURCHASE PRICE
The aggregate consideration for the sale of the Assets to Purchaser (the "Purchase Price") is One Hundred Seventy-Five Thousand Dollars ($175,000), to be paid as follows:

A. No later than forty-eight (a8) hours after the Contract Date, Purchaser shall deposit Twenty-Five Thousand (US$25,000) in the Receiver Account (the "Deposit"); provided, that, if srtch 48- hour period ends on a day that is not a Business Day, the Deposit shall be due on the next Business Day thereafter.

B. Except in the event of a Termination Event (defined below), the Deposit shall be nonrefundable.

C. Within forty-eight (48) hours of being notified by Receiver that the Sale Order has been issued by the Court (the "Sale Approval Date"), Purchaser shall deliver the balance ofthe Purchase Price (as adjusted by the Deposit) to the Receiver Account. The Purchase Price shall be held by Receiver until Closing.

IV. DEVELOPMENT AGREEMENT AND CANNABIS LICENSE TRANSFER A. Subject to the deposit of the Purchase Price in accordance with Section III(c), no later than five (5) days of the Sale Approval Date, Receiver shall initiate any and all action necessary to transfer the Assets to Purchaser.

B. The Parties shall work together in good faith (and in a timely manner): (i) to take all steps reasonably necessary or appropriate to accomplish the transfer of the Assets as contemplated hereunder including, without limitation, communicating with the City; (ii) abide by any instructions provided by the City with respect to the sale and transfer of the Assets to Purchaser (including but not limited to background clearance ofPurchaser); and (iii) to obtain the new state license(s) required to allow operation ofa legal cannabis business in the name of Purchaser.

C. If, at any time prior to Closing, the City refuses to approve the transfer of the Development Agreement to Purchaser as contemplated herein, the Parties shall work together in good faith (and to the extent practicable) to negotiate an altemative structure to accomplish the intention of the Parties hereunder.

If an alternative structure is not legally permissible, this Agreement shall automatically terminate, and all 3 of15
II.
lnitial
PT]RCHASE AND SALE AGREEMENT In
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-23707 4C92E0F monies deposited or paid by Purchaser into the Receivership Account shall be returned to Purchaser within three (3) Business Days of such determination.

V. COURT APPROVAL
Within ten (10) days of the Contract Date, Receiver shall file the appropriate motion or ex parte application before the Court in the Case seeking issuance of an order confirming and approving this Agreement and the Transactions (the "Sale Order"). The issuance of the Sale Order shall act as a condition precedent to the consummation of the Agreement.

VI. CONDITIONS TO CLOSING
A. As to Business and Receiver. The obligations of the Business and Receiver to consummate the Transactions are subject to the satisfaction or waiver on or prior to the Closing Date of all of the following conditions:

1. the City has delivered written notice (whether to Receiver or Purchaser) approving the transfer of the Development Agreement to Purchaser;

2. Purchaser shall have deposited the Purchase Price in the Receivership account;

3. the Sale Order shall not have been reversed, modified, amended or stayed, except for such immaterial modifications or amendments which do not, individually or in the aggregate, materially adversely affect Receiver;

4. all representations and warranties of Purchaser contained herein shall be true and correct as of the Contract Date and true and correct in all material respects as of the Closing Date as though such representations and warranties had been made on and as ofthat date (except those representations and warranties that by their terms address matters only as of another specified date, which shall be so true and correct in all respects only as ofsuch other specified date);

5. all of the terms, covenants and conditions of this Agreement to be complied with and performed by Purchaser on or before the Closing Date shall have been duly complied with and performed in all material respects;

6. no action or proceeding before a court or any other governmental agency or body shall have been instituted or threatened against Purchaser which seeks to restrain or prohibit or recover damages relating to the Transactions; and

7. Receiver shall have received the deliveries required to be made to them by Purchaser at the Closing.

B. As to Purchaser. The obligations of Purchaser to consummate the Transactions are subject to the satisfaction or waiver on or prior to the Closing Dale of all of the following conditions:

L the City has delivered written notice (whether to Receiver or Purchaser) approving the transfer of the Development Agreement to Purchaser;

2. the Sale Order shall not have been reversed, modified, amended or stayed, except for such immaterial modifications or amendments which do not, individually or in the aggregate, materially adversely affect Purchaser;

3. the Sale Order shall remain in effect and no action or proceeding resulting in a stay of the Sale Order or otherwise invalidating the Sale Order shall have occurred as of the Closing Date;

4. UNTENTIONALLYDELETEDI

5. Purchaser has not received any notice of a material claim of an Encumbrance that cannot be released or otherwise addressed by Receiver prior to the Closing Date; and 4 of l5

PURCHASE AND SALE AGREEMENT
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-23707 4C92EOF

6. all of the terms, covenants and conditions of this Agreement to be complied with and performed by Receiver on or before the Closing Date shall have been duly complied with and performed in all material respects (including, without limitation, compliance with any and all requirements of a receiver ofthe court which are relevant to the Transactions)' VII. CLOSING
A. Closing shall take place upon Receiver or Purchaser receiving written notice from the Cify that the transfer of the Development Agreement to Purchaser has been approved. On the Closing Date, Receiver may release the Purchase Price from the Receivership Account.

B. The Purchase Price shall be released from the Receivership Account to Receiver only upon the following: (i) the written consent of Purchaser and Receiver; (ii) the receipt of written confirmation from the City that the transfer of the Development Agreement to Purchaser has been approved; or (iii) by an order of the Court.

VIII. MSA
A. ln connection with this Agreement, the Parties intend to enter into a separate Management Services Agreement ("MSA") by which Purchaser shall assume management of the Business's operations pending issuance of the State Approvals, subject to the Receiver's supervision as set forth in the MSA, in order for Purchaser to carry out business activities between the Closing and the issuance of the State Approvals.

B. It is the Parties' intention that the Receiver seek approval of the MSA at the time he appties ex parte to advance the hearing date on his motion to confirm the sale contemplated herein, and that the MSA period shall commence shortly after the Receiver obtains an order approving the MSA.

IX. REPRESENTATIONS AND WARRANTIES OF RECEIVER
Any and all representations and wananties provided by Receiver are limited, given that Receiver has not owned or operated the Business since its formation, but rather is the Court's receiver and has no knowledge regarding the Business outside of the limited information that Receiver has obtained since his appointment pursuant to the Court Order. Based on that limited information, Receiver hereby represents and warrants to Purchaser as follows:

A. Authority to Sell. Subject to the entry of the Sale Order and any other orders required by the Court in connection with the Transactions: (i) Receiver has the power, authority and right to enter into and deliver this Agreement and to carry out its obligations hereunder; and (ii) this Agreement constitutes a valid and legally binding obligation of Receiver, enforceable against Receiver in accordance with its terms.

B. Valid License. The Development Agreement and the Cannabis Licenses are current and valid.

C. No Encumbrances. The Assets shall be transferred to Purchaser free and clear of any and all Encumbrances.

X. REPRESENTATIONS AND WARRANTIES OF PURCHASER
Purchaser represents and warrants to Receiver as follows:

A. Consents and Approvals. No consent, waiver, approval, order, permit, or authorization of, or declaration or filing with, or notification to, any person or governmental body is required on the part of Purchaser in connection with the execution and delivery of this Agreement or the compliance by the Purchaser with any ofthe provisions hereofor thereof; provided, thot,the Transactions are subject to the consent of the Court and the City.
5ofl5
lnitial

PTJRCHASE AND SALE AGREEMENT
DS
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-23707 4C92E0F B. Litigation. There are no Actions pending, or, to the knowledge of Purchaser, threatened against Purchaser that seeks to enjoin or obtain damages in respect of the consummation ofthe Transactions, question the validity of this Agreement or any action taken or to be taken by Purchaser in connection with the consummation of the Transactions.

C. Purchaser Acknowledgments. Purchaser specifically acknowledges that, except for Receiver's representations herein, and subject to Receiver's obligations as contained herein, Purchaser is not relying on any representations or wananties of any kind whatsoever, express or implied, from Receiver, or any director, officer, employee, representative, broker, or other agent of either of them, as to the Transictions, including: (i) the legal or tax consequences of this Agreement or the Transactions; (ii) the continued validity of the License; and (iii) the completeness or accuracy of any information provided to Purchaser by Receiver or their agents. Purchaser understands the legal significance of the foregoing provisions and acknowledges that they are a material inducement to Receiver's willingness to enter into this Agreement.

XI. ADDITIONAL AGREEMENTS
A. Cooperation. On and after the Closing, each Party shall deliver or cause to be delivered to the other Parties such additional documents, releases, assignments and instruments as the other Parties may reasonably request for the purpose of carrying out the purposes of this Agreement, including, without limitation, the surrender of the Business's state license(s) in order to facilitate issuance of equivalent license(s) in the name of Purchaser. Receiver, at no cost to Purchaser, will cooperate in good faith and use reasonable efforts to cooperate with Purchaser on and after the Closing (and to direct the Business's present and former officers, directors, and employees to cooperate with Purchaser on and after the Closing) in furnishing information, evidence, and other assistance in connection with any filing obligations, actions, proceedings, arrangements or disputes of any nature with respect to matters pertaining to periods prior to ihe Closing Date including, without limitation, any claim of an Encumbrance. While Receiver agrees to cooperate fully as provided herein, for purposes of clarification, Receiver makes no representations with regard to Purchaser's ability to obtain any state or other licenses, except as specifically provided herein, nor dois Receiver make any representations with regard to Purchaser's ability to continue operations on or after the Closing Date, and this Agreement is not contingent thereon. Moreover, Receiver's obligation to transfer the Assets free and clear of Encumbrances is fully satisfied via issuance of the Sale Order containing such language, and nothing in this paragraph shall obligate Receiver to defend, indemnify, or otherwise defeat posi-Cl,osing claims asserted against Purchaser in connection with Encumbrances, although Receiver agrees io communiiate with any person or entity which attempts to assert a claim against Purchaser arising entirely from an Encumbrance and explain the issuance and effect of the Sale Order. Notwithstanding the foregoing, Receiver's obligations under this paragraph shall terminate automatically and immediately upon Receiver's discharge as the Receiver in the Case.

B. Turnover of Payments. In the event that Receiver receives any payment, instrument of payment or other property to which Purchaser is entitled, Receiver shall deliver the same or cause the same io ie delivered promptly to Purchaser (with endorsement if necessary but otherwise in the same form as received) and until so delivered hold the same in trust for the benefit ofand as the property ofPurchaser.

C. Disclaimer of Other Representations and Warranties. PURCHASER AGREES THAT

THE ASSETS SHALL BE SOLD AND THAT PURCHASER SHALL ACCEPT THAT THE BUSINESS OWNS THE ASSETS AT CLOSING STRICTLY ON AN "AS IS, WHERE IS, WITH ALL FAULTS''

BASIS, WITH NO RIGHT OF SET-OFF OR REDUCTION IN THE PURCHASE PRICE EXCEPT FOR

ADJUSTMENTS EXPRESSLY CONTEMPLATED HEREBY AND THAT, EXCEPT FOR

RECEIVER'S LIMITED REPRESENTATIONS SET FORTH HEREIN, THE SALE OF THE ASSETS

CONTEMPLATED HEREBY SI-IALL BE WITHOUT REPRESENTATION OR WARRANTY OF ANY

KIND, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF INCOME POTENTIAL,

OPERATING EXPENSES, USES, MERCHANTABILITY OR FITNESS FOR A PARTICULAR 6 of l5

PURCHASE AND SALE AGREEMENT
DS
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-237074C92EOF

PURPOSE, AND RECEIVER DOES HEREBY DISCLAIM AND RENOUNCE ANY SUCH REPRESENTATION OR WARRANTY.

D. No Successor Liability. The Parties intend that, except where expressly prohibited under appticable Law, upon the Closing, Purchaser shall not be deemed to: (i) be the successor of the Business or Receiver; (ii) have, de facto, or otherwise, merged with or into the Business or Receiver; (iii) be a mere continuation or substantial continuation ofthe, Receiver, Business or the enterprise(s) ofthe Business; or (iv) be liable for any acts or omissions of Business or Receiver arising under or related to the Development Agreement or the Cannabis Licenses other than as set forth in this Agreement. Withoul limiting the generality of the foregoing, and except as otherwise provided in this Agreement, the Parties intend that Furchaser shall not be liable for any Encumbrance against the Business, the Assets or any of the Receiver's, the Business's predecessors or Affiliates, and Purchaser shall have no successor or vicarious liability ofany kind or character whether known or unknown as of the Closing Date, whether now existing or hereafter arising, or whether fixed or contingent, with respect to the Assets or any liabilities of Receiver arising prior to the Closing Date.

XII. SURVIVAL
The representations, warranties and agreements made by the Parties will survive the Closing, except that any agreement on the part of Receiver shall terminate as of the Court discharging Receiver from Receivlr's duties as Receiver in the Case, and no representation, warranty, or other agreement related hereto shall be considered made by Receiver in Receiver's personal capacity.

XIII. TERIVIINATION OF AGRBEMENT
A. Termination. This Agreement may be terminated at any time prior to the Closing Date upon:
l. mutual written consent of Receiver and Purchaser;

2. the written notice of Purchaser to Receiver if: (i) Receiver is in material breach or default of this Agreement and such material breach has not been cured before the earlier of (A) five (5) Business Days after receipt of written notice of such breach, and (B) the Closing Date; or (ii) if the obligations of Receiver set forth Section VI have not been satisfied (or waived by Purchaser) as of the Closing Date; (iii)

3. the written notice of Receiver to Purchaser if: (i) Purchaser is in material breach or default of this Agreement and such material breach has not been cured before the earlier of (A) five (5) Business Days after receipt of written notice of such breach, and (B) the Closing Date; or (ii) if the obligations of Purchaser set forth Section VI have not been satisfied (or waived by Receiver) as of the Closing Date; (iii); and

4. by either Receiver or Purchaser ifl (i) Receiver fails to obtain a valid Sale Order; (ii) the Court fails to approve the sale of the Assets to Purchaser free and clear of any Encumbrances; (iii) the City prohibits the transfer of the Development Agreement or the Cannabis Licenses, and the Parties cannot create an alternative structure acceptable to the City; or (iv) the Closing Date does not occur on or before one (l) year from the Contract Date.

B. Return of Funds. In the event of any termination in accordance with Section XIII(A), all funds paid into the Receivership Accounts shall be released from the Receivership Account to Purchaser unless such termination is due to Purchaser's material breach or default pursuant to Section XIII(A)(3), in which case the Deposit shall be forfeited to the Receiver C. Liabilities. The termination of this Agreement will in no way limit any obligation or liability of any party based on or arising from a breach or default by such party with respect to any of its representations, warranties, covenants or agreements contained in this Agreement. 7 of15

PURCHASE AND SALE AGREEMENT
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-237 07 4C92E0F XIV. MISCELLANEOUS
A. Expenses and Taxes. Whether or not the Transactions are consummated, Purchaser, on the one hand, and Receiver, on the other hand, will pay their own fees, expenses and disbursements incurred in connection with the subject matter of this Agreement, including all costs and expenses incurred in the performance and compliance with all conditions to be performed by such party under this Agreement, except that the Purchaser (and not Receiver) shall pay all sales, use, transfer, real property transfer, recording, gains, transfer and other similar taxes and fees ("Transfer Taxes") imposed in connection with the purchase and other Transactions. The Purchaser shall file, or cause to be filed, all necessary documentation and tax returns with respect to such Transfer Taxes.

B. No Liability by Receiver. Receiver is neither the owner of the Business nor the Assets.

Receiver is selling the Business and the Assets solely in his capacity as the Court's receiver. Receiver is not acting in his personal capacity, and no liability or obligations shall accrue to him personally or to any of his attorneys, accountants, employees, agents, representatives, heirs, partners or other advisors, that directly or indirectly caused him to be appointed receiver in the Case. As used in this Agreement, the term "Receiver" shall mean and refer to Kevin Singer, acting solely in his capacity as receiver in the Case. As of the Contract Date, the owner of the Assets is the Business. Purchaser, Purchaser's successors, agents, assigns, affiliates, and heirs hereby agree not to make any claim andlor seek any recourse for any actual or alleged liability against Receiver arising out of this Agreement, either to Receiver personally, or against Receiver's personal assets, Receiver's partners (either general or limited), shareholders, members, managers, officers, directors, attorneys, accountants, agents, employees, advisors, heirs, or lenders that directly or indirectty caused or motioned Receiver's appointment as Receiver. For avoidance of doubt, nothing in this provision shall prevent Purchaser from asserting claims arising out of this Agreement against the assets of the Receivership Estate.

C. Notices. All notices and consents to be given hereunder shall be in writing and shall be deemed to have been duly given if: (i) delivered personally; (ii) delivered by a recognized overnight courier to the Party entitled thereto at the address set forth below; or (iii) by email at the address set forth below, as set forth below:

Receiver: Kevin Singer, Receiver
Receivership Specialists
11500 W. Olympic Blvd., #530
Los Angeles, CA 90064
[email protected] AND [email protected] Purchaser: John Oram
NUG Inc.
2601 Blading Ave., #408
Alameda, CA 94501
j [email protected] and mattr@nug. com
With copy to: Russell Greenman
NUG Inc.
2193 8.14ft Street
Los Angeles,CA90024
russell. [email protected]
D. Severability. The Parties intend and believe that each provision in this Agreement comports with all applicable Laws. If, however, any provision in this Agreement is found by a court of law to be in violation of any applicable Law or public policy, or if in any other respect such a court declares any such provision to be illegal, invalid, unlawful, void or unenforceable as written, then it is the intent of all Parties that, consistent with and with a view towards preserving the economic and legal arrangements 8ofl5
PURCHASE AND SALE AGREEMENT In
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-237 07 4C92EOF among the Parties as expressed in this Agreement, such provision shall be given force and effect to the fullest possible extent, and that the remainder of this Agreement shall be construed as if such illegal, invalid, unlawful, void, or unenforceable provision were not contained herein, and that the rights, obligations, and interests of the Parties under the remainder of this Agreement shall continue in full force and effect.

E. Interpretation. The representations, warranties, agreements and covenants of the Parties made herein shall survive the consummation of the Transactions and the consummation of the Transactions shall not be deemed a waiver of a breach of or inaccuracy in any representation, warranty, agleement or covenant or of any Party's rights and remedies with regard thereto. No specific representation, warranty, agreement or covenant contained herein shall limit the applicability of a more general representation, warranty, agreement or covenant contained herein.

F. Time of the Essence. TIME IS OF THE ESSENCE WITH RESPECT TO EACH PROVISION OF THIS AGREEMENT. Without limiting the foregoing, Purchaser and Receiver hereby confirm their intention and agreement that time shall be of the essence with respect to each and every provision of this Agreement, notwithstanding any subsequent modification or extension of any date or time period that is provided for under this Agreement. The agreement of Purchaser and Receiver that time is of the essence with respect to each and every provision of this Agreement shall not be waived or modified by any conduct of the Parties, and the agreement of Purchaser and Receiver that time is of the essence with respect to each and every provision of this Agreement may only be modified or waived by the express wriften agreement of Purchaser and Receiver that time shall not be of the essence with respect to a particular date or time period, or any modification or extension thereof, which is provided under this Agreement.

G. Construction of Contract. This Agreement shall not be construed more strictly against one Party than against the other merely by virtue of the fact that it may have been prepared primarily by counsel for one of the Parties, it being recognized that both Purchaser and Receiver have contributed substantially and materially to the preparation of this Agreement.

H. No Implied Contract. Neither Seller nor Receiver shall have any obligations in connection with the Transactions unless Receiver, on the one hand, and Purchaser, on the other hand acting in its sole discretion, elect to execute and deliver this Agreement to the other Party. No correspondence, course of dealing, or submission of drafts or final versions of this Agreement between Receiver and Purchaser shall be deemed to create any binding obligations in connection with the transaction contemplated hereby, and no contract or obligation on the part of Receiver or Purchaser shall arise unless and until a counterpart of this Agreement is fully executed by each of Receiver and Purchaser. Once so executed and delivered by Receiver and Purchaser, this Agreement shall be binding upon them.

I. Waiver. The excuse or waiver of the performance by aParty of any obligation of the other Party under this Agreement shall only be effective if evidenced by a written statement signed by the Party so excusing or waiving. No delay in exercising any right or remedy shall constitute a waiver thereof, and no waiver by Receiver or Purchaser ofthe breach ofany covenant ofthis Agreement shall be construed as a waiver of any preceding or succeeding breach of the same or any other covenant or condition of this Agreement.

J. Remedies Cumulative. No right, remedy or election given by any term of this Agteement shall be deemed exclusive, but each shall be cumulative with all other rights, remedies and elections available at law or in equity.

K. Governing Law. This Agreement shall be deemed to be a contract entered into in the State of California and it and all matters arising out of the transactions contemplated hereby or related thereto shall be governed, construed and interpreted in all respects according to the Laws ofthe State ofCalifornia, without reference to principles of conflicts of law thereof' 9ofl5
PURCHASE AND SALE AGREEMENT In
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-23707 4C92E0F L. Venue. Any action to enforce this Agreement, or to interpret or construe the meaning of this Agreement, shall be brought in the Court and Purchaser hereby expressly waives venue in any other jurisdiction.

M. Waiver of Jury Trial and Jurisdiction For Any Legal Disputes. Purchaser and Receiver waive any and all rights to ajury trial as to any legal dispute, proceeding or action between Purchaser and Receiver arising out of this Agreement and/or the Transactions, whether it involves Purchaser or Receiver.

Purchaser and Receiver agree that ifthere is any legal dispute, proceeding, or action arising out ofor related to this Agreement and/or the sale of the Assets, the Court presiding over the Case shall have exclusive jurisdiction over any such legal dispute, proceeding or action. Purchaser and Receiver also agree that any dispute shall be resolved, without the need for discovery or taking of testimony, by summary proceedings on noticed motion.

N. Attorneys' Fees. In the event of a judicial or administrative proceeding or action by one Party against the other Party with respect to the interpretation of, enforcement of, or any action under this Agreement, the predominantly prevailing Party shall be entitled to recover reasonable costs and expenses iniluding reasonable attorneys' fees and expenses. The predominantly prevailing Party shall be determined by the Court based upon an assessment of which Party's major arguments or position prevailed.

O. Assignment Entire Agreement. This Agreement and the rights and obligations of Receiver hereunder may not be assigned, whether by operation of law or otherwise, without the prior written consent of Purchaser. This Agreement and the rights and obligations of Purchaser hereunder may be assigned, whether by operation of law or otherwise, by Purchaser to a wholly-owned affiliate or subsidiary of Purchaser upon notice to Receiver.

P. Entire Agreement. This Agreement (including the Exhibits attached hereto) and the documents referred to herein set forth the entire agreement of the Parties concerning the subject matter of this Agreement and supersede any and all prior agreements and understandings relating to the subject matter of this Agreement. This Agreement may only be modified or amended by an agreement in writing executed by each of the Parties and any term of this Agreement may be waived only with the written consent of the Party sought to be bound.
a. No Third-Party Beneficiaries. This Agreement is solely for the benefit of the Parties and, to the extent provided herein, their successors, heirs, personal representatives and permitted assigns, and no provision of this Agreement shall be deemed to confer upon other third parties any remedy, claim, liability, reimbursement, cause of action or other right.

R. Obligations of Parties; Successors and Assigns. Subject to following provisions, this Agreement shall be binding upon and inure to the benefit of the Parties and their respective heirs, personal representatives, successors and assigns. Ifmore than one person or entity is named as Purchaser, the term 'oPurchaser" shall lefer to each Person or entity so named and any one or more of them in any combination, and the representations, warranties, covenants, obligations and liabilities ofPurchaser herein shall constitute theirjoint and several representations, warranties, covenants, obligations and liabilities.

S. Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. The exchange of copies of this Agreement and of signature pages by attachment of a PDF file to e-mail shall constitute effective execution and delivery of this Agreement as to the Parties and may be used in lieu of the original Agreement for all purposes.

Signatures of the Parties transmitted by attachment of a PDF file to e-mail shall be deemed to be their original signatures for all purposes.

T. Descriptive Headings; Word Meaning. The descriptive headings of the paragraphs of this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any provisions ofthis Agreement. Words such as "herein," "hereinafter," "hereof'and "hereunder" when 10of15
PURCHASE AND SALE AGREEMENT Initi
Docusign Envelope lD: 4't 8F3F30-DF03-41 D3-9D02-237 07 4C92EOF used in reference to this Agreement, refer to this Agreement as a whole and not merely to a subdivision in which such words appear, unless the context otherwise requires. The singular shall include the plural and the masculine gender shall include the feminine and neuter, and vice versa, unless the context otherwise requires. The word "including" shall not be restrictive and shall be interpreted as if followed by the words "without limitation". Each exhibit referenced herein shall be deemed part of this Agreement and incorporated herein wherever any reference is made thereto. Unless otherwise defined therein, capitalized terms used in the exhibits to this Agreement shall have the meanings given to such terms respectively in the body of this Agreement.

ISTGNATURES TO FOLLOW ON NEXT PAGEI
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PURCHASE AND SALE AGREEMENT
Docusign Envelope lD: 41 8F3F30-DF03-41 D3-9D02-23707 4C92EOF IN WITNESS WHEREOF, the Parties hereto have executed this Asset Purchase Agreement as of the Contract Date.

BUSINESS:
by:
k ,,iw S
Kevin Singer, solely in his capacity as Receiver appointed over the Business RECEIVER:
by:

By h.l^r-rn S
Kevin Singer, solely in his capacity as Receiver appointed over the Business PURCHASER:

Name: John Oram
Title: CEO
l2ofl5
By

PURCHASE AND SALE AGREEMENT
DS
Docusign Envelope I D: 41 8F3F30-DF03-41 D3-9D02 -237 07 4C92E0F

TABLE OF EXHIBITS
Exhibit A Court Order
Exhibit B Receivership Account and Wire Instructions

Page 13 ends

Firebaugh City CouncilMay 4, 2026

Firebaugh City Council
May 4, 2026