Agenda packet — Hanford City Council, July 18, 2023 (part 5 of 5)

Note: Any Surety Bond, if a part of the sale of the vehicle as to which this limited warranty is provided, applies only to this Pierce Basic One Year Limited Warranty for such vehicle, and not to other warranties made by Pierce in a separate document (if any) or to the warranties (if any) made by any manufacturer (other than Pierce) of any part, component, attachment or accessory that is incorporated into or attached to the vehicle. 2/8/2010 WA0014

1. LIMITED WARRANTY
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES ALL

OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

2. DISCLAIMERS OF WARRANTIES
The original purchaser may void this warranty in part or in its entirety if the product is repaired or replaced (a) without prior written approval of the Pierce Customer Service Department; or (b) at a facility which has not been approved by Pierce as to technical capability. Any repairs, modifications, alterations or aftermarket parts added after manufacture without the authorization of Pierce may void this warranty.

This limited warranty shall apply only if the product is properly maintained in accordance with Pierce's maintenance instructions and manuals and is used in service which is normal to the particular model. Normal service means service which does not subject the product to stresses or impacts greater than normally result from careful use. If the Buyer discovers a defect or nonconformity, it must notify Pierce in writing within thirty (30) days after the date of discovery, but in any event prior to the expiration of the warranty period.

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This limited warranty applies to all of the control modules for the Command Zone system, including the full color graphic displays. Related wire harnesses, cables and connectors are not covered under this limited warranty and are instead covered under the Pierce One Year Basic Apparatus Limited Warranty.

Conditions and
Exclusions:

See Also
Paragraphs
2 thru 4
Limited Warranty
Subject to the limitations and exclusions set forth below, Pierce Manufacturing provides the following warranty to the Buyer:
(c) any vehicle, chassis or component, part, attachment or accessory that has been repaired, altered or assembled in any way by any person or entity other than Pierce which, in the sole judgment of Pierce, adversely affects the performance, stability or purpose for which it was manufactured; or
(a) any integral parts, components, attachments or trade accessories of or to the product that are not manufactured by Pierce, including but not limited to engines, transmissions, drivelines, axles, water pumps and generators; with respect to all such parts, components, attachments and accessories, Pierce shall assign to Buyer the applicable warranties, if any, made by the respective manufacturers thereof; Notwithstanding anything to the contrary herein, Pierce makes no warranty whatsoever as to:

Fire and Rescue Apparatus
Coverage:

Five (5) Year Material and Workmanship
Command Zone Electronics
Five (5) YearsWarranty Period
Ends After:

The date of the original purchase invoice (issued when the product ships from the factory).Warranty Begins:

Command Zone control modules shall be free from failures caused by defects in material and workmanship
(d) products or parts which may in the ordinary course wear out and have to be replaced during the warranty period, including, but not limited to, tires, fluids, gaskets and light bulbs. Pierce assumes no responsibility for the assembly of its parts or subassemblies into finishing products or vehicles unless the assembly is performed by Pierce. (b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot;

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

REGARDLESS OF WHETHER PIERCE HAS BEEN INFORMED OF THE POSSIBILITY OF ANY SUCH DAMAGES. Without limiting the generality of the foregoing, Pierce specifically disclaims any liability for property or personal injury damages, penalties, damages for lost profits or revenues, loss of vehicles or products or any associated equipment, cost of substitute vehicles or products, down-time, delay damages, any other types of economic loss, or for any claims by any third party for any such damages.

If the product fails to conform to the warranty set forth in paragraph 1 during the warranty period, and such nonconformity is not due to misuse, neglect, accident or improper maintenance, Buyer must notify Pierce within the time period specified in paragraph 1, and shall make the product available for inspection by Pierce or its designated agent. At the request of Pierce, any allegedly defective product shall be returned to Pierce by Buyer for examination and/or repair. Buyer shall be responsible for the cost of such transportation, and for risk of loss of or damage to the product during transportation.

Within a reasonable time, Pierce shall repair or replace (at Pierce's option and expense) any nonconforming or defective parts. Repair or replacement shall be made only by a facility approved in advance in writing by Pierce. THIS REMEDY SHALL BE THE EXCLUSIVE AND SOLE REMEDY FOR ANY BREACH OF WARRANTY.

3. BUYER'S EXCLUSIVE REMEDY.

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1. LIMITED WARRANTY
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES ALL

OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This limited warranty does not apply to related wire
harnesses, cables, and connectors, which are covered by the Pierce one (1) year basic apparatus limited warranty.

Conditions and
Exclusions:

Fire and Rescue Apparatus
Coverage:
54 Months Material and Workmanship
Camera System
Fifty - Four (54) monthsWarranty Period
Ends After:

The date of delivery.Warranty Begins:

This limited warranty covers repairs to correct any defect related to materials or workmanship of the Sharpvision
camera system installed on the apparatus occuring during th e
warranty period.
(d) products or parts which may in the ordinary course wear out and have to be replaced during the warranty period, including, but not limited to, tires, fluids, gaskets and light bulbs. Pierce assumes no responsibility for the assembly of its parts or subassemblies into finishing products or vehicles unless the assembly is performed by Pierce. (b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot;

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

3. BUYER'S EXCLUSIVE REMEDY.

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Fire and Rescue Apparatus
Coverage:

Ten (10) Year Material and Workmanship
Pierce 12V LED Strip Light
Limited Warranty
Notwithstanding anything to the contrary herein, Pierce makes no warranty whatsoever as to:

This limited warranty covers repairs to correct any defect related to materials or workmanship of the Pierce 12V LED strip lights installed on the apparatus occuring during the warranty period.

1. LIMITED WARRANTY
(b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot; Subject to the limitations and exclusions set forth below, Pierce Manufacturing provides the following warranty to the Buyer:
(c) any vehicle, chassis or component, part, attachment or accessory that has been repaired, altered or assembled in any way by any person or entity other than Pierce which, in the sole judgment of Pierce, adversely affects the performance, stability or purpose for which it was manufactured; or
(a) any integral parts, components, attachments or trade accessories of or to the product that are not manufactured by Pierce, including but not limited to engines, transmissions, drivelines, axles, water pumps and generators; with respect to all such parts, components, attachments and accessories, Pierce shall assign to Buyer the applicable warranties, if any, made by the respective manufacturers thereof; The date of the original purchase invoice (issued when the product ships from the factory).Warranty Begins:

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This limited warranty does not apply to related wire
harnesses, cables, and connectors, which are covered by the Pierce one (1) year basic apparatus limited warranty.

Conditions and
Exclusions:

See Also
Paragraphs
2 thru 4

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

3. BUYER'S EXCLUSIVE REMEDY.
(d) products or parts which may in the ordinary course wear out and have to be replaced during the warranty period, including, but not limited to, tires, fluids, gaskets and light bulbs. Pierce assumes no responsibility for the assembly of its parts or subassemblies into finishing products or vehicles unless the assembly is performed by Pierce.

Ten (10) YearWarranty Period
Ends After:

OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

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NEW PRODUCT WARRANTY

PARTICIPATING OEM SALES

DISTRIBUTOR SALES

LIMITED WARRANTY ON NEW ALLISON AUTOMATIC TRANSMISSIONS

USED IN EMERGENCY VEHICLE APPLICATIONS

Allison Transmission will provide for repairs or replacement, at its option, during the warranty period of each new Allison transmission listed below that is installed in an Emergency Vehicle in accordance with the following te rms, conditions, and limitations.

WHAT IS COVERED
 WARRANTY APPLIES — This warranty is for new Allison transmission models listed below installed in an Emergency Vehicle and is provided to the original and any subsequent owner(s) of the vehicle during the warranty period.  REPAIRS COVERED — The warranty covers repairs or replacement, at Allison Transmission’s option, to correct any transmission malfunction resulting from defects in material or workmanship occurring during the warranty period. Needed repairs or replacements will be performed using the method Allison Transmission determines most appropriate under the circumstances.  TOWING — Towing is covered to the nearest Allison Transmission Distributor or authorized Dealer only when necessary to prevent further damage to your transmission.
 PAYMENT TERMS — Warranty repairs, including parts and labor, will be covered per the schedule shown in the chart contained in section “APPLICABLE MODELS, WARRANTY LIMITATIONS, AND ADJUSTMENT SCHEDULE.”  OBTAINING REPAIRS — To obtain warranty repairs, take the vehicle to any Allison Transmission Distributor or authorized Dealer within a reasonable amount of time and request the needed repairs. A reasonable amount of time must be allowed for the Distributor or Dealer to perform necessary repairs.
 TRANSMISSION REMOVAL AND REINSTALLATION — Labor costs for the removal and re-installation of the transmission, when necessary to make a warranty repair, are covered by this warranty.  WARRANTY PERIOD — The warranty period for all coverages shall begin on the date the transmission is delivered to the first retail purchaser, with the following exception:

Demonstration Service - A transmission in a new truck or bus may be demonstrated to a total of 5000 miles (8000 kilometers).

If the vehicle is within this limit when sold to a retail purchaser, the warranty start date is the date of purchase. Normal warranty services are applicable to the demonstrating Dealer. Should the truck or bus be sold to a retail purchaser after these limits are reached, the warranty period will begin on the date the vehicle was first placed in demonstration service and the purchaser will be entitled to the remaining warranty.

APPLICABLE MODELS, WARRANTY LIMITATIONS, AND ADJUSTMENT SCHEDULE

WARRANTY LIMITATIONS
(Whichever occurs first)

ADJUSTMENT CHARGE TO BE

PAID BY THE CUSTOMER APPLICABLE
MODELS
Months
Transmission Miles
Or Kilometers Parts Labor
MT, MD
3000, 3200, 3500, 3700 0–24 No Limit No Charge No Charge HT with Hydraulic Controls 0–24 No Limit No Charge No Charge AT, 1000 Series, 2000 Series,
2400 Series 0–36 No Limit No Charge No Charge
HT with Electronic Controls 0–60 No Limit No Charge No Charge HD
1000 EVS, 2100 EVS, 2200 EVS
2350 EVS, 2500 EVS, 2550 EVS,
3000 EVS, 3500 EVS, 4000,
4000 EVS, 4500, 4500 EVS, 4700,
4700 EVS, 4800, 4800 EVS
0–60 No Limit No Charge No Charge

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Page 554 of 665 ends

WHAT IS NOT COVERED
 DAMAGE DUE TO ACCIDENT, MISUSE, or ALTERATION — Defects and damage caused as the result of any of the following are not covered:
— Flood, collision, fire, theft, freezing, vandalism, riot, explosion, or objects striking the vehicle; — Misuse of the vehicle;
— Installation into unapproved a pplications and installations; — Alterations or modification of th e transmission or the vehicle, and — Damage resulting from improper storage (refer to long-term st orage procedure outlined in the applicable Allison Service Manual) — Anything other than defects in Allison Transmission material or workmanship NOTE: This warranty is void on transmissions used in vehicles currently or previously titled as salvaged, scrapped, junked, or totale d.  CHASSIS, BODY, and COMPONENTS — The chassis and body company (assemblers) and other component and equipment manufacturers are solely responsible for warranties on the chassis, body, component(s), and equipment they provide. Any transmission repair caused by an alteration(s) made to the Allison transmission or the vehicle which allows the transmission to be installed or operated outside of the limits defined in the appropriate Allison Installation Guideline is solely the responsibility of the entity making the alteration(s).  DAMAGE CAUSED by LACK of MAINTENANCE or by th e USE of TRANSMISSION FLUIDS NOT RECOMMENDED in the OPERATOR’S MANUAL — Defects and damage caused by any of the following are not covered:
— Failure to follow the recommendations of the maintena nce schedule intervals applicable to the transmission; — Failure to use transmission fluids or maintain transm ission fluid levels recommended in the Operator’s Manual.  MAINTENANCE — Normal maintenance (such as replacement of filters, screens, and transmission fluid) is not covered and is the owner’s responsibility.
 REPAIRS by UNAUTHORIZED DEALERS — Defects and damage caused by a service outlet that is not an authorized Allison Transmission Distributor or Dealer are not covered.
 USE of OTHER THAN GENUINE ALLISON TRANSMISSION PARTS — Defects and damage caused by the use of parts that are not genuine Allison Transmission parts are not covered.  EXTRA EXPENSES — Economic loss and extra expenses are not covered. Examples include but are not limited to: loss of vehicle use; inconvenience; storage; payment for loss of time or pay; vehicle rental expense; lodging; meals; or other travel costs.  “DENIED PARTY” OWNERSHIP — Warranty repair parts and labor costs are not reimbursed to any participating or non-participating OEMs, dealers or distributors who perform warranty work for, or on behalf of, end users identified by the United States as being a “denied party” or who are citizens of sanctioned or embargoed countries as defined by the U.S. Department of Treasury Office of Foreign Assets Control. Furthermore, warranty reimbursements are not guaranteed if the reimbursement would be contrary to any United States export control laws or regulations as defined by the U.S. Department of Commerce, the U.S. Department of State, or the U.S. Department of Treasury.

OTHER TERMS APPLICABLE TO CONSUMERS AS DEFINED by the MAGNUSON-MOSS WARRANTY ACT This warranty gives you specific legal rights and you may also have other rights which vary from state to state.

Allison Transmission does not authorize any person to create for it any other obligation or liability in connection with these transmissions.

ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE APPLICABLE TO THESE TRANSMISSIONS IS LIMITED IN DURATION TO THE DURATION OF THIS WRITTEN WARRANTY.

PERFORMANCE OF REPAIRS AND NEEDED ADJUSTMENTS IS THE EXCLUSIVE REMEDY UNDER THIS WRITTEN WARRANTY OR ANY IMPLIED WARRANTY. ALLISON TRANSMISSION SHALL NOT BE LIABLE FOR INCIDENTAL OR

CONSEQUENTIAL DAMAGES (SUCH AS, BUT NOT LIMITED TO, LOST WAGES OR VEHICLE RENTAL EXPENSES) RESULTING FROM BREACH OF THIS WRITTEN WARRANTY OR ANY IMPLIED WARRANTY.** ** Some states do not allow limitations on how long an implied warranty will last or the exclusion or limitation of incidental or consequential damages, so the above limitations or exclusions may not apply to you.

OTHER TERMS APPLICABLE TO OTHER END-USERS

THIS WARRANTY IS THE ONLY WARRANTY APPLICABLE TO THE ALLISON TRANSMISSION MODELS LISTED

ABOVE AND IS EXPRESSLY IN LIEU OF ANY OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. ALLISON

TRANSMISSION DOES NOT AUTHORIZE ANY PERSON TO CREATE FOR IT ANY OTHER OBLIGATION OR LIABILITY IN CONNECTION WITH SUCH TRANSMISSIONS. ALLISON TRANSMISSION SHALL NOT BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES RESULTING FROM BREACH OF THIS WARRANTY OR ANY IMPLIED WARRANTY.

QUESTIONS
If you have any questions regarding this warranty or the performance of warranty obligations, you may contact any Allison Transmission Distributor or Dealer or write to:

Allison Transmission, Inc.

P.O. Box 894
Indianapolis, IN 46206-0894
Attention: Warranty Administration PF-9

Form SE0616EN (201009)

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Page 555 of 665 ends

Warranty Begins:

The transmission cooler shall be free from component or structural failures caused by defects in material and/or workmanship. Collateral damage up to $10,000 per
occurrence is available for the first three (3) years.
(b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot; (d) products or parts which may in the ordinary course wear out and have to be replaced during the warranty period, including, but not limited to, tires, fluids, gaskets and light bulbs. Pierce assumes no responsibility for the assembly of its parts or subassemblies into finishing products or vehicles unless the assembly is performed by Pierce.

Five (5) Years on Oil Cooler and three (3) years on collateral damage coverage
Warranty Period
Ends After:

Fire and Rescue Apparatus
Coverage:

Five (5) Year Material and Workmanship - Transmission Oil Cooler Three (3) Year Collateral Damage Coverage

1. LIMITED WARRANTY
The original purchaser may void this warranty in part or in its entirety if the product is repaired or replaced (a) without prior written approval of the Pierce Customer Service Department; or (b) at a facility which has not been approved by Pierce as to technical Limited Warranty
Subject to the limitations and exclusions set forth below, Pierce Manufacturing provides the following warranty to the Buyer:
(c) any vehicle, chassis or component, part, attachment or accessory that has been repaired, altered or assembled in any way by any person or entity other than Pierce which, in the sole judgment of Pierce, adversely affects the performance, stability or purpose for which it was manufactured; or
(a) any integral parts, components, attachments or trade accessories of or to the product that are not manufactured by Pierce, including but not limited to engines, transmissions, drivelines, axles, water pumps and generators; with respect to all such parts, components, attachments and accessories, Pierce shall assign to Buyer the applicable warranties, if any, made by the respective manufacturers thereof; Notwithstanding anything to the contrary herein, Pierce makes no warranty whatsoever as to:

The date of delivery to the first retail purchaser.

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This warranty does not cover repair due to accidents,
misuse, and excessive vibration, flying debris, storage damage (freezing), negligence or modification. This warranty is void if any modification or repairs are performed without authorization. This also voids any future warranty.

This warranty does not cover cost of maintenance or repairs due to lack of required maintenance services as
recommended. Performance of the required maintenance
and use of proper fluids are the responsibility of the owner.

Towing is covered to the nearest distributor or authorized dealer only when necessary to prevent further damage to your transmission.

Labor costs for the removal and reinstallation of goods may be covered when necessary to make repairs. Please contact your OEM for authorization.

Replacement of cooler during the warranty period is limited to 100% of reasonable labor costs up to a maximum of $700 to remove, replace, or repair the oil cooler.

Conditions and
Exclusions:

See Also
Paragraphs
2 thru 4

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

REGARDLESS OF WHETHER PIERCE HAS BEEN INFORMED OF THE
POSSIBILITY OF ANY SUCH DAMAGES. Without limiting the generality of the foregoing, Pierce specifically disclaims any liability for property or personal injury damages, penalties, damages for lost profits or revenues, loss of vehicles or products or any associated equipment, cost of substitute vehicles or products, down-time, delay damages, any other types of economic loss, or for any claims by any third party for any such damages.

3. BUYER'S EXCLUSIVE REMEDY.

ALL OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

2. DISCLAIMERS OF WARRANTIES
capability. Any repairs, modifications, alterations or aftermarket parts added after manufacture without the authorization of Pierce may void this warranty.

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United Plastic Fabricating, Inc. (hereinafter called “UPF”) warrants each POLY-TANK®, Booster/Foam Tank POLYSIDE® Wetside Tank, Integrator Tank/Body, ELLIPSE™ Elliptical Tank, Ellip-T-Tank Tank and DEFENDER™ Skid Tank to be free from defects in material and workmanship for the service life of the original vehicle (vehicle must be actively used in an emergency re- sponse for fire suppression). All UPF Tanks must be installed and operated in accordance with the UPF Installation and Operating Guidelines. Failure to do so can void the warranty.

Every UPF Tank is inspected and tested before leaving our facility. Should your UPF Tank require service, please notify UPF via email, fax, in writing or by calling UPF at 1-978-975-4520. Please provide the serial number, a de - scription of the service request, the location along with the phone number and name of the contact person. Our goal is to have scheduled work completed within a reasonable time period.

Under a valid warranty claim, UPF will cover the cost to repair the UPF Tank including the customary and reasonable costs to make the tank accessible such as the removal and reinstallation of the tank if authorized in advance (pre-approved) by UPF. The warranty will not cover tanks that have been im- properly installed, operated, misused, abused, or modified from its intended or designed use. Serial number must not have been altered, defaced or re - moved. Tanks that are not stored or installed properly which results in the tank suffering UV damage will not be covered by this agreement.

Should UPF determine that the service claim is valid under this warranty for a tank located outside of the United States and Canada, UPF will assume the costs for labor and material for the warranty repair as described above plus all travel costs to the U.S. port of embarkation. Costs for airline travel outside of the U.S. and Canada will not be the responsibility of UPF.

In the event the tank shall become stationed in an area of the world that is considered to be a war zone or where unsafe conditions exist for the safe passage of United States Nationals, as reported by the United States Depart- ment of State, (http://www.state.gov), and a request to perform service or warranty repairs, UPF reserves the right to refuse to honor such requests. It is the purchaser’s responsibility to relocate the tank to an area where such repairs can be performed without undue risk to UPF employees or their des - ignee. UPF will make every reasonable effort to support our products though alternative means.

For Ellipse™ elliptical tanks, a separate five year warranty provided by the subcontractor is applied to the sub-frames, chute linings (rubber isolation strips) and metal components. The stainless steel wrap provided by UPF shall be warranted by the subcontractor performing the wrap installation in accordance with their warranty in place at the time of the installation. UPF will not be liable for any warranty costs associated with the wrap, sub-frames, chute linings (rubber isolation strips) and metal components but will assist with all claims on behalf of its customer.

For PolySide® wetsided tanks and Integrator™ Tank/Body units, all polypro- pylene components related to the tank shall carry the standard UPF lifetime FOR: POLY-TANK®, POLYSIDE®, INTEGRATOR™, ELLIPSE™, ELLIP-T-TANK™ & DEFENDER™

WARRANTY
UNITED PLASTIC FABRICATING, INC.

LIFETIME SERVICE WARRANTY
Continued on back
E f f e c t i v e 1 A u g u s t , 2 0 0 9

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service warranty. Other polypropylene components, including but not limited to compartments, wheel wells, fenders and other body related components shall be warranted by UPF for a period of ten years. The warranty for the PolySide® and Integrator™ units excludes paint or hardware, which shall be covered by the manufacturer of the paint/hardware.

All UPF tanks 50 gallons or less utilized for non-fire applications and installed on specialty vehicles such as ATVs, trailers, boats, etc. are covered under a separate warranty policy available from UPF. Further, UPF Protector™ foam and water trailers are warranted under a separate warranty policy available from UPF.

This UPF warranty is transferable within the United States only with prior writ- ten approval by UPF (except an original apparatus manufacturer may assign this warranty to the first titled owner/lessee of the apparatus).

UPF will NOT reimburse any unnecessary work and/or work that has not been pre-approved. Any and all third party charges must be pre- authorized and approved in writing by UPF prior to commencing the work. Any unauthorized third party repairs, alterations, actions or modi- fications will not be covered and can void the warranty. UPF will be the sole determining authority as to whether a service claim will be valid and covered under this warranty.

In no event will UPF be liable for an amount in excess of the purchase price of the booster/foam tank at the time of manufacture or for any loss or dam - age, whether direct, indirect, incidental, consequential, or otherwise arising out of failure of its product. Loss of contents (water, foam, etc.) shall not be the responsibility of UPF. Further, UPF is not responsible for costs associated with service repairs to chassis, sub-frames, bodies, valves, dumps, hoses, pressure vacuum vents, and other components (i.e. liquid level transducers, etc.). Further, UPF will not cover the cost for travel of the vehicle to and from a repair facility.

This warranty contains the entire warranty. It is the sole warranty and price agreements or representation, whether oral or written, are either merged herein or expressly cancelled. UPF neither assumes, nor authorizes any per- son supposing to act on its behalf to change, nor assume for it, any warranty or liability concerning its product.

This warranty gives you specific legal rights, and you may also have other rights which vary from state to state. Some states do not allow exclusion or limitation or incidental or consequential damage, so the above limitation or exclusion may not apply to you. Since some states do not allow limitations on the length of an implied warranty, the above limitation may not apply to you.

THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, WHICH EX - TEND BEYOND THE DESCRIPTION OF THE FACE HEREOF. THERE IS

NO EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY OR A
WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE. ADDITION -

ALLY, THIS WARRANTY IS IN LIEU OF ALL OTHER OBLIGATION OR LIABILITIES ON THE PART OF UPF.

FOR: POLY-TANK®, POLYSIDE®, INTEGRATOR™, ELLIPSE™, ELLIP-T-TANK™ & DEFENDER™

WARRANTY
UNITED PLASTIC FABRICATING, INC.

POLY-TANK®,& POLYSIDE® are registered trademarks of UPF, Inc. INTEGRATOR™, ELLIPSE™, ELLIP-T-TANK™ & DEFENDER™ are trademarks of UPF, Inc. © 08/01/09 UPF, Inc. Printed in the USA

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2 6 0 0 A M E R I C A N D R I V E • A P P L E T O N , W I 5 4 9 1 2- 2 0 1 7 • 9 2 0- 832 - 3 000

P I E R C E M A N U F A C T U R I N G I N C .

B U L L E T I N

TO: All Dealer Service Representatives

From: Kevin Hanegraaf

DATE: January 4, 2010

RE: UPF Tank Warranty Policy – Truck in Accident

Service Topic #292

To keep the UPF tank warranty valid on trucks that have been involved in a vehicular accident, it is UPF’s policy that the customer must remove the tank from the truck and send it back to one of UPF’s facilities for inspection. In the event that this does not take place, the warranty will be considered null and void.

The customer must remove and send the tank back to UPF for inspection in order to maintain the original warranty coverage, at which time it will be:
- Filled with water
- Visually inspected
- Ultraviolet spark tested on articulating test stand in the dark - Recommendation for repairs if necessary provided by UPF - Fully evaluated and repaired by UPF

If your customer chooses to leave the tank on the truck and wants a technician to inspect and/or repair the tank in the field, then the warranty is no longer in effect.

This direction is upheld by UPF because the technician cannot inspect the entire tank when it is still installed on the truck.

Note: This memo is intended to relay the information Pierce has received on UPF’s tank warranty for trucks that are in a vehicular accident. In the event of an actual claim, we direct you to consult with UPF’s service Manager Maura Watts (800-638-8265 x253)

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1. LIMITED WARRANTY
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES ALL

OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This warranty applies only to the body tubular support and mounting structures and other structural components of the body of the vehicle model, as identified in the Pierce
specifications for the Fire and Rescue Apparatus.

This warranty does not apply to damage caused by corrosion.

Conditions and
Exclusions:

Fire and Rescue Apparatus
Coverage:

Ten (10) Year Structural Integrity
Apparatus Body
Ten (10) Years
- or -
100,000 Miles
Warranty Period
Ends After:

The date of the original purchase invoice (issued when the product ships from the factory).Warranty Begins:

The apparatus body shall be free from structural failures caused by defects in material and workmanship
(d) products or parts which may in the ordinary course wear out and have to be replaced during the warranty period, including, but not limited to, tires, fluids, gaskets and light bulbs. Pierce assumes no responsibility for the assembly of its parts or subassemblies into finishing products or vehicles unless the assembly is performed by Pierce. (b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot;

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

3. BUYER'S EXCLUSIVE REMEDY.

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A & A Manufacturing Co., Inc. 2300 S. Calhoun Road · New Berlin, WI 53151 · Phone (262) 786-1500 · Fax (262) 786-3280 Pierce Warranty Statement for Gortite Roll Up Doors Rev 2/24/2011

All mechanical components of the door shall be warranted to be free from defects in materials and workmanship for the lifetime of the vehicle. All parts covered under this warranty shall be to the original owner.

A&A manufacturing warrants that painted doors shall be free of blistering, peeling, bubbling, or any other adhesion defect caused by defective manufacturing methods or paint material selection. The time period for the coverage shall be 6 years from date of door shipment to Pierce. Satin anodized finish doors shall be warranted for 6 years against corrosion defects from date of door shipment to Pierce. Replacement of decals/Scotchlite is not covered.

The maximum amount A&A will reimburse for labor is $60.00 per hour and the maximum amount of time allowed for repair is as follows:

Door 1.0 Hr.

Slat Replacement 1.0 Hr.

Pennant Plate Replacement 1.0 Hr.

Roller Replacement .5 Hr.

Seal Replacement .5 Hr.

Switch/Magnet Replacement 1.0 Hr.

Travel Time 4.0 Hr.

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THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This limited warranty applies to the PUC Pump and all its components manufactured under the Pierce brand, including the integrated pump transmission. Items not manufactured under the Pierce brand such as valves, relief valves or wear items such as wear rings, seals, bearings or costs of
removal, transporting, storing, or reinstallation are not covered by this six-year limited warranty and are instead covered under the Pierce Basic One Year Limited Warranty.

Conditions and
Exclusions:

See Also
Paragraphs
2 thru 4

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

Seven (7) Years
- or -
3000 Pump Hours
Warranty Period
Ends After:

OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

Fire and Rescue Apparatus
Coverage:

Seven (7) Year Material and Workmanship
PUC-NG Pump
Limited Warranty
Notwithstanding anything to the contrary herein, Pierce makes no warranty whatsoever as to:

The PUC-NG Pump, intergrated pump transmisison, and its components manufactured under the Pierce brand in its Fire and Rescue Apparatus vehicle shall be free from failures caused by defects in material and workmanship

1. LIMITED WARRANTY
(b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot; Subject to the limitations and exclusions set forth below, Pierce Manufacturing provides the following warranty to the purchaser who first puts the product in service ("Buyer"):
(c) any vehicle, chassis or component, part, attachment or accessory that has been repaired, altered or assembled in any way by any person or entity other than Pierce which, in the sole judgment of Pierce, adversely affects the performance, stability or purpose for which it was manufactured; or
(a) any integral parts, components, attachments or trade accessories of or to the product that are not manufactured by Pierce, including but not limited to engines, transmissions, drivelines, axles, water pumps and generators; with respect to all such parts, components, attachments and accessories, Pierce shall assign to Buyer the applicable warranties, if any, made by the respective manufacturers thereof; The date of the original purchase invoice (issued when the product ships from the factory).Warranty Begins:

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Warranty Begins:

Stainless steel piping shall be free from structural failures caused by defects in material and workmanship, or
perforation caused by corrosion.
(b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot; (d) products or parts which may in the ordinary course wear out and have to be replaced during the warranty period, including, but not limited to, tires, fluids, gaskets and light bulbs. Pierce assumes no responsibility for the assembly of its parts or subassemblies into finishing products or vehicles unless the assembly is performed by Pierce.

Ten (10) Years
- or -
100,000 Miles
Warranty Period
Ends After:

Fire and Rescue Apparatus
Coverage:

Ten (10) Year Material and Workmanship
Stainless Steel Piping

The date of the original purchase invoice (issued when the product ships from the factory).

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

Pierce’s obligation under this warranty is limited to repairing or replacing without charge, as Pierce may elect, the
stainless steel piping or components which Pierce
determines to have failed due to defective material and workmanship, or perforation caused by corrosion.

This warranty does not cover the use of fluoroprotein (FP) type foam. The sodium chloride within FP foam can cause long-term damage to system components if not thoroughly flushed immediately after use.

Conditions and
Exclusions:

See Also
Paragraphs
2 thru 4

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

REGARDLESS OF WHETHER PIERCE HAS BEEN INFORMED OF THE
POSSIBILITY OF ANY SUCH DAMAGES. Without limiting the generality of the foregoing, Pierce specifically disclaims any liability for property or personal injury damages, penalties, damages for lost profits or revenues, loss of vehicles or products or any associated equipment, cost of substitute vehicles or products, down-time, delay damages, any other types of economic loss, or for any claims by any third party for any such damages.

3. BUYER'S EXCLUSIVE REMEDY.

ALL OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

2. DISCLAIMERS OF WARRANTIES
capability. Any repairs, modifications, alterations or aftermarket parts added after manufacture without the authorization of Pierce may void this warranty.

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THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

Conditions and
Exclusions:

See Also
Paragraphs
2 thru 4

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

REGARDLESS OF WHETHER PIERCE HAS BEEN INFORMED OF THE
POSSIBILITY OF ANY SUCH DAMAGES. Without limiting the generality of the foregoing, Pierce specifically disclaims any liability for property or personal injury damages, penalties, damages for lost profits or revenues, loss of vehicles or products or any associated equipment, cost of substitute vehicles or products, down-time, delay damages, any other types of economic loss, or for any claims by any third party for any such damages.

One (1) Year & Five (5) YearWarranty Period
Ends After:

ALL OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

Fire and Rescue Apparatus
Coverage:

One (1) Year Material and Workmanship Foam System & Five (5) Year Material and Workmanship Control Head
Limited Warranty
Notwithstanding anything to the contrary herein, Pierce makes no warranty whatsoever as to:

Limited warranty 1 year parts and labor for for the foam system and 5 years parts and labor for the control head.

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1. LIMITED WARRANTY
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES ALL

OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This limited warranty is applicable to the vehicle in the following percentage costs of warranty repair, if any:

Topcoat Durability & Appearance: Gloss, Color Retention & Cracking
0-72 months 100%
73-96 months 50%
97-120 months 25%
Integrity of Coating System: Adhesion, Blistering/Bubbling 0-36 months 100%
37-84 months 50%
85-120 months 25%
Corrosion: Dissimilar Metal and Crevice
0-36 months 100%
37-48 months 50%
49-72 months 25%
73-120 months 10%
Corrosion Perforation
0-120 months 100%
This limited warranty applies only to exterior paint. Paint on the vehicle's interior is warranted only under the Pierce Basic One Year Limited Warranty.

Items not covered by this warranty include:
(a) Damage from lack of maintenance and cleaning (proper cleaning and maintenance procedures are detailed in the Pierce operation and maintenance manual).
(b) UV paint fade.
(c) Any cab not manufactured by Pierce.

Conditions and
Exclusions:

Fire and Rescue Apparatus
Coverage:

Ten (10) Year Pro-Rated Paint and Corrosion
Custom Body
Ten (10) YearsWarranty Period
Ends After:

The date of the original purchase invoice (issued when the product ships from the factory).Warranty Begins:

Exterior surfaces of the body shall be free from blistering, peeling, corrosion or any other adhesion defect caused by defective manufacturing methods or paint material selection. (d) products or parts which may in the ordinary course wear out and have to be replaced during the warranty period, including, but not limited to, tires, fluids, gaskets and light bulbs. Pierce assumes no responsibility for the assembly of its parts or subassemblies into finishing products or vehicles unless the assembly is performed by Pierce. (b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot;

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

3. BUYER'S EXCLUSIVE REMEDY.

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1. LIMITED WARRANTY
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES ALL

OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This warranty does not cover damage from lack of
maintenance and cleaning (proper cleaning and maintenance procedures are detailed in the Pierce operation and
maintenance manual).

Conditions and
Exclusions:

Fire and Rescue Apparatus
Coverage:

Three (3) Year Material and Workmanship
Goldstar® Gold Leaf Lamination
Three (3) YearsWarranty Period
Ends After:

The date of the original purchase invoice (issued when the product ships from the factory).Warranty Begins:

Each Goldstar® gold leaf lamination shall be free from
defects in material and workmanship.
(d) products or parts which may in the ordinary course wear out and have to be replaced during the warranty period, including, but not limited to, tires, fluids, gaskets and light bulbs. Pierce assumes no responsibility for the assembly of its parts or subassemblies into finishing products or vehicles unless the assembly is performed by Pierce. (b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot;

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

3. BUYER'S EXCLUSIVE REMEDY.

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JROGHQVWDWHĆUHFRP

DEALER SUPPLIED

PRODUCTS SERVICES
Exhibit “D”
5 AND
/OR

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1 DEALER SUPPLIED PRODUCTS and/or SERVICES
The following items and/or services will be provided by Golden State Fire Apparatus Inc. (GSFA) prior to final delivery:

LICENSED MANUFACTURER
The State of California Vehicle Code, section 11701 requires “ every manufacturer of a vehicle subject to registration shall make application to the Department of Motor Vehicles (DMV) for a license containing a general distinguishing number” . The manufacturer has a current license at time of proposal and shall provide a copy upon request. Temporary licenses are not acceptable.

LICENSED DEALERSHIP
The State of California Vehicle Code, section 11701 requires a “dealer in vehicles of a type s ubject to registration, shall make application to the Department of Motor Vehic les (DMV) for a license containing a general distinguishing number” . Golden State Fire Apparatus, Inc. has a current license at time of bid as outlined above and is available upon request. Temporary licenses are not acceptable.

LICENSED SALES REPRESENTATIVE
The State of California Vehicle Code, section 11800 requires that it shall be “unlawful for any person to function as a vehicle salesperson without having first procured a lice nse issued by the Department of Motor Vehicles (DMV)” . The representative ha s a curr ent vehicle salesperson’s license at time of proposal and shall provide a copy upon request. Temporary licenses are not acceptable.

VEHICLE REGISTRATION
The State of California Vehicle Code section 11739 requires that the “dealer of a new motor v ehicle sale is responsible for applying for the title, securing vehicle registration, and obtaining license plates for the Customer” through the Department of Motor Vehicles (DMV) . Golden State Fire Apparatus, Inc. is a factory-authorized dealer of the vehicle bein g sold and is authorized to register with the State of California as a new vehicle manufacturer.

GSFA will make all necessary applications and complete all transf er papers, including applying for California Exempt “E” license plates.

WEEKLY PROGRESS PHOTOGRAPHS
GSFA w ill provide weekly photograph s of the apparatus or the major components as they are being constructed. The photographs will commence at the start of the manufacturing process and will continue through production by the manufacturer. The reports will show the progress of the ap paratus through the course of each week. Special attention will be given to show the unique features and aspects of the apparatus as construction progresses.

PRE-CONSTRUCTION, FACTORY TRIP
A pre-construction trip to the manufacturing facility will be provided fo r three (3 ) C ustomer representative(s). The intent of this trip is to review and finalize, in detail, the specifications prior to the start of production . The pre-construction trip will have a duration of four (4) days and three (3 ) nights and be scheduled at times mutually agre ed upon between GSFA and the Customer. Costs for airfare, lodging, meals, and ground transportation while at the manufacturer’s location will be the responsibility of GSFA. Air travel will be from one of the following airports: Sacramento, San Francisco, or San Jose.

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2 Costs such as Customer ground transportation in California, Customer airport parking, Customer luggage fees and Cust omer incidentals while trav eling to the factory will be the r esponsibility of the Customer.

Flight reservations are non -refundable and in the event of a cancellation after booking, the C ustomer will be responsible for all costs associated with this cancellation, which may include not only the original ticket cost but also any change or cancellation fees imposed by the airline and/ or travel agency. Flight reservations are also non-transferable.

FINAL INSPECTION, FACTORY TRIP
A final in spection trip to the manufacturing facility will be provided for three (3 ) Customer representative(s). The intent of this trip is to ens ure that the apparatus is built to specification and to detect any deficiencies that require correction. The final inspection trip will have a duration of four (4) days and three (3) nights and be sched uled at times mutually agre ed upon between GSFA and the Customer. Costs for airfare, l odging, meals, and ground transportatio n while at t he manufacturer’s location will be the responsibility of GSFA. Air travel will b e from one of the following airports:

Sacramento, San Francisco, or San Jose.

Costs such as Customer ground transportation in California, Customer airport parking, Customer luggage fees and Cust omer incidentals while traveling to the factory will be the responsibil ity of the Customer.

Flight reservations are non -refundable and in the event of a can cellation after booking, the C ustomer will be responsible for all costs associated with this cancellation, which may include not only the original ticket cost but also any change or cancellation fees imposed by the airline and/ or travel agency. F light reservations are also non-transferable.

DELIVERY TO AUTHORIZED SERVICE FACILITY
GSFA will, at their exp ense, deliver the apparatus (including any a pplicable equipment, spar e parts, and supplies) to their Northern California facility in Sacramento for a dealer preparation inspection.

To ensure proper break-in of all components while still under warranty, the apparatus shall be delivered under its own power - rail or truck freight shall not be acceptable.

PRE-DELIVERY SERVICE
After transportation from the factory and prior to delivery, t he apparatus will receive a pre -delivery service to confirm proper operation and correction of any issues found as a result of said inspection. The Golden State Fire Apparatus, Inc. pre-delivery service consists of the following:

• Engine Compartment and Undercarriage – Check for any broken mounting brackets and inspect for correct capacities of the following (if applicable): engine oil, coolan t, power steering fluid, washer reservoir fluid, transmission fluid, rear end fluid, pump transmission oil, and primer oil.

• Interior – Operate all doors, windows, and locks for proper adjustment. Check upholstery.

• Exterior – Repair reasonable paint scrat ches or chips . Tighten any l oose hardware and inspe ct tires and wheels for proper pressure and lug torquing.

• Road Test – With the water tank (if applicable) full, the apparatus wi ll be driven approximately twenty miles which allows the drive train components to get up to operating temperature. Road test will be on both city and highway roads . A DOT compliant brake t est will be conducted to ensure the system is holding air. The brake condition and wheel seals will also be inspected.

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3 • Electrical - Operate all lights, sirens, and other electrical accessories to verify operation.

• Pump - If applicable, vacuum tes t the pump to hold for 15 minutes . After vacuum test, operate the relief valve, transfer valve and check pump shift . Check water tank for leaks an d inspect water level gauge for calibration. With discharge caps loose, rapid test all individual gauges an d main gauges for calibration. Lubricate valve rods.

• Foam System – If applicable, tighten caps and connect foam lines. Test selector, valves, metering valve and operation of foam system (including flush).

• Fuel Tank - Fuel tank will be filled at the dealership location prior to final delivery.

• DEF Tank - DEF tank will be filled at the dealership location prior to final delivery.

• Wash - The apparatus will be thoroughly washe d at the dealership location pri or to final delivery.

FINAL DELIVERY (CUSTOMER LOCATION)
GSFA wi ll, at the ir ex pense, d eliver the Product (including any ap plicable equipment , spare parts, and supplies) to the Custom er specified address once compl eted. Prio r to delivery of the Pro duct, Customer agrees to provide proof of liability and physical damage insurance to GSFA. GSFA will not release the Product to the Customer until such proof of insurance is provided.

It is the responsibility of the Customer to have any outstanding balance due, paid in ful l to GSFA, prior to or at the time that the Product is complete and read y to deliver. If payment is late or delivery is delayed pending payment, a daily finance charge of $ 150.00 and a daily storage fee of $50.00 may apply until such payment is received.

Due to in surance liability, the Product will not be delivered without full acceptance and full payment (or prior written agreement between the Customer and GSFA).

END OF EXHIBIT “D”

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11.O.

AGENDA

STAFF REPORT

MEETING DATE: 7/18/2023 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Adoption of the City of Hanford fiscal year 2023-24 Investment Policy

RECOMMENDATION:

Recommendation: That City Council, by motion, adopt a City of Hanford fiscal year 2023-24 Investment Policy

Recommended Motion: I move to adopt a City of Hanford fiscal year 2023-24 Investment Policy BACKGROUND:

The City’s cash is one of Hanford’s most valuable assets. The use of that cash and safekeeping is an important function of the City. Cash on hand can also be a source of significant income if used wisely. As a result, the Council has some oversight responsibilities, namely:

1) The annual review and adoption of the City’s investment policy; 2) Delegation of investment authority to the Finance Director/Treasurer.

Investment Policy updates
The proposed 2023-24 investment policy, Exhibit A, is attached for Council’s review. There are minor updates to the policy.
1) The cover page date changed from 2022-2023 to 2023-2024 2) Updates to reference CA Debt and Investment Advisory Commission January 1, 2023 update 3) Updated wording for the Annual Comprehensive Financial Report (ACFR)

Delegation of Investment Authority
The Council needs to annually delegate investment authority to the Finance Director/Treasurer as shown in the City’s Investment Policy. By adopting the City’s Investment Policy, the authority will again be delegated to the Finance Director/Treasurer.

Summary
The most important point in managing the City’s cash is to remember the purpose of the cash is to provide the residents of Hanford with services; earning investment returns is a secondary goal. The proposed changes in the investment policy and the investment report is designed to follow the SLY acronym: Safety, Liquidity and Yield. While some investments in government agencies lose value, the City's will continue to gain value. Keeping the City’s cash safe allows all to sleep well at night.

FISCAL IMPACT:

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This action provides an update to the City's investment policy for generating yield on investments following the 'SLY' approach.

ATTACHMENTS:

1. 2023 City of Hanford Investment Policy 2023-2024 DRAFT

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CITY OF HANFORD
ൢൠൢൣ-ൢൠൢ൤

INVESTMENT POLICY

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1 TABLE OF CONTENTS
S e c t i o n T o p i c P a g e

1.0 Introduction 1
2 . 0 S c o p e 1

3.0 Prudence 2

4.0 Investment Objectives 2

5.0 Delegation of Authority 2

6.0 Ethics and Conflicts of Interest 2

7.0 Authorized Financial Dealers and Institutions 3

8.0 Authorized and Suitable Investments 3
9 . 0 R e v i e w 5

10.0 Investment Pools/Mutual Funds 5

11.0 Collateralization 5

12.0 Safekeeping and Custody 6

13.0 Diversification 6

14.0 Maximum Maturities 6
1 5 . 0 I n t e r n a l C o n t r o l s 6

16.0 Performance Standards 6

17.0 Reporting 6

18.0 Investment Policy Adoption 6
1 9 . 0 G l o s s a r y 7

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2 City of Hanford, California
Investment Policy

1.0 INTRODUCTION
The City of Hanford (City) has a fiduciary responsibility to maximize the productive use of its liquid assets entrusted to its care and to manage those public funds wisely and prudently.

The purpose of this document is to identify various policies and procedures that enhance opportunities for a prudent and systematic investment policy and to organize and formalize investment-related activities. Related activities which comprise good cash management include accurate cash projections, the expeditious collection of revenue, the control of disbursements, cost-effective banking relations, and short-term borrowing program which coordinates working capital requirements and investment opportunity. It is the policy of the City to invest public funds in a manner that will provide high investment return with the maximum security while meeting the daily cash flow demands of the entity and conforming to all state and local statutes governing the investment of public funds.

2.0 SCOPE
It is intended that this policy cover all funds and investment activities under the direct authority of the City. This policy also covers any funds held by fiscal agents in connection with the issuance of any bonds by the City.

Such funds shall be invested in accordance with the applicable trust indenture.

These funds are accounted for in the City's Audited Financial Statements or Annual Comprehensive Financial Report (ACFR) and include:

General Fund
Special Revenue Funds
Debt Service Funds
Capital Project Funds
Enterprise Funds
Internal Service Funds
Trust and Agency Funds

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3 Funds Held by Fiscal Agents
Any new funds created by the City Council (unless specifically exempted)

3.0 PRUDENCE
The standard of prudence to be used by city officials responsible for the investment of public funds shall be the “prudent person” standard as set forth in California Code Section 53600.3 and shall be applied in the context of managing the overall city portfolio of funds. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual’s security risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

4.0 INVESTMENT OBJECTIVES

4.1 Safety. It is the primary duty and responsibility of the Treasurer to protect, preserve, and maintain cash and investments placed in his trust on behalf of the City. The safety or risk associated with an investment refers to the potential loss of principal, accrued interest or a combination of the two.

4.2 Liquidity. An adequate percentage of the portfolio should be maintained in liquid short-term securities which can be converted to cash if necessary to meet disbursement requirements. Since all cash requirements cannot be anticipated, investments in securities with active secondary or resale markets is highly recommended.

Emphasis should be on marketable securities with low sensitivity to market risk.

4.3 Yield. Yield should become a consideration only after the basic requirements of safety and liquidity have been met. The investment portfolio shall be designed to attain a market average rate of return throughout budgetary and economic cycles, taking into account the City's risk constraints, the cash flow characteristics of the portfolio, and State and Local laws, ordinances or resolutions that restrict investments. Examples of yield benchmarks are U. S. Treasuries from bills to 5 year notes and the average Fed Funds Rate.

4.4 Public Trust. All participants in the investment process shall act as custodians of the public trust.

Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism that is worthy of public trust.

It is the City's intent, at the time of purchase, to hold all investments until maturity. In a diversified portfolio it must be recognized that occasional measured losses are inevitable, and must be considered within the context of the overall portfolios investment return, provided that adequate diversification has been implemented.

5.0 DELEGATION OF AUTHORITY
California Government Code Section 53607 provides the authority of the legislative body of the local agency to invest the funds of the local agency or to delegate that authority to the treasurer of the local agency. The Treasurer is authorized by City ordinance to manage the investment needs of the City. The Treasurer will establish a system of controls to regulate the activities of staff authorized to invest, specifically the Finance Manager or Financial Analyst, and procedures in the absence of the Treasurer.

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4 6.0 ETHICS AND CONFLICTS OF INTEREST
The City Treasurer and those employees that are involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the City Council any material financial interests in financial institutions that conduct business with their jurisdiction and shall further disclose any large personal financial investment positions that could be related to the performance of the City.

7.0 AUTHORIZED FINANCIAL DEALERS AND INSTITUITONS
The City shall transact business with nationally or state chartered banks, federal or state savings and loan institutions, registered primary securities dealers and qualified regional dealers under SEC Rule 15c3-1 (net capital rule).

7.1 Broker Dealers must:

A. be licensed by the States as a broker dealer, as defined in Section 25004 or the Corporations Code.

B. be a member of the Financial I ndustry Regulatory Authority (FINRA).

C. offer securities appropriate to the City’s needs.

D. have read the City ’s Investment Policy.

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5 8.0 AUTHORIZED AND SUITABLE INVESTMENTS:

Investment of City funds is governed by the California Government Code Sections 53600, 53601, 53601.5, 53601.6, and 53635. Within the context of the limitations in Figure 1, the following investments are authorized, as further limited herein as updated by California Debt and Investment Advisory Commission January 1, 2023:

Source: CDIAC Local Agency Investment Guide (LAIG), Figure 1 Information as of January 1, 2023A and applicable to all local agenciesB

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6 TABLE OF NOTES FOR FIGURE 1
Source: CDIAC Local Agency Investment Guide (LAIG), Figure 1 Information as of January 1, 2023A and applicable to all local agenciesB

9.0 REVIEW
The securities held by the City must be in compliance with 8.0 Authorized and Suitable Investments at the time of purchase. The Treasurer will review the portfolio at least quarterly to insure securities are still in compliance and determine if it is necessary to report to council any major or critical incidences of noncompliance.

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7 10.0 INVESTMENT POOLS/MUTUAL FUNDS
The City further stipulates that mutual funds/money market mutual funds are restricted to funds that include only permitted investments under 8.0 Authorized and Suitable Investments.

Governmental sponsored pools and/or mutual funds are included in Section 8.0 Authorized and Suitable Investments; therefore, the City must do due diligence and a thorough investigation of the pool and/or fund prior to investing, and on a continual basis. There shall be a questionnaire; any additional pool shall provide the following:

A. A description of eligible i nvestment securities, and a written statement of investment policy and objectives.

B. A description of interest calc ulations and how it is distributed, and how gains and losses are treated.

C. A description of how the secu rities are safeguarded (including the settlement processes), and how often are the securities pri ced and the program audited.

D. A description of who may invest in the progr am, how often, and what size deposits and withdrawals are allowed.

E. A schedule for receiving st atements and portfolio listings.

F. A list of any reserves, retained earnings, etc. utilized by the pool.

G. A fee schedule, when and how it is assessed.

H. Pool eligibility for bond proceeds and/ or pool policy on accepting such proceeds.

11.0 COLLATERALIZATION
Collateralization will be required on two types of investments: certificates of deposit and repurchase agreements. Collateral for non-negotiable certificates of deposit must comply with Government Code 53652.

In addition, if the CD is not FDIC /NCUA insured or goes over the FDIC/NCUA $250,000 limit, collateral is required equal to 110 percent of market value of principal and accrued interest. Collateral for repurchase agreements shall be 102 percent of market value of principal and accrued interest.

The City chooses to limit collateral to the following: US Treasury securities or Federal Agency securities. This will provide an addition level of security due to inevitable changes in market conditions. Collateral will always be held by an independent third party with whom the City has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The right of collateral substitution is granted, within the parameters and constraints of this Policy.

Section 53649 of the California Government Code specifies that the City Treasurer is responsible for entering into deposit contracts with each depository. Investments held with third parties and applicable collateral for the investment shall be properly collateralized in accordance with requirements of the California Government Code.

12.0 SAFEKEEPING AND CUSTODY

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8 All securities, including collateral for repurchase agreements, entered into by the City shall be held by a third party custodian designated by the Treasurer and evidenced by safekeeping receipts.

13.0 DIVERSIFICATION
The City will diversify the investment portfolio by the type of investment, issuer, and maturity dates in order to mitigate risk in the investment portfolio. With the exception of U. S. Treasury securities and authorized pools such as LAIF, no more than 30% of the City’s total investment portfolio will be invested in a single security type or with a single financial institution.

14.0 MAXIMUM MATURITIES
It is the City’s policy to buy and hold investments until maturity. Maturities of investments will be selected based on cash flow requirements. Investments will have a maximum remaining maturity of only the limitations imposed by government statute or five (5) years from purchase, whichever is shorter. Reserve funds may be invested in securities exceeding 5 years based on the permissible investment maturities dictated by the legal documents.

15.0 INTERNAL CONTROLS
A system of internal controls shall be established to prevent losses of public funds arising from fraud, employee error, and misrepresentations of third parties, unanticipated changes in financial markets or imprudent actions by employees of the City. An independent review of internal control and investment practices, policies and procedures will be provided annually by the City’s external auditor.

16.0 PERFORMANCE STANDARDS
The investment portfolio shall be invested with the objective of obtaining a market rate of return with considerations to budgetary and economic cycles, commensurate with investment risk constraints and cash flow needs.

17.0 REPORTING
The council has delegated investment authority to the City Treasurer for a one-year period. The Treasurer shall make a monthly report of investment transactions to the legislative body. Section 53607 of the California Government Code states the legislative body, subject to review; many renew the delegation of authority pursuant to this section each year.

18.0 INVESTMENT POLICY ADOPTION
The policy shall be reviewed annually by the Treasurer and City Attorney for any revisions. The policy will be submitted to the City Council for their review and approved each fiscal years.

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9 19.0 GLOSSARY

GLOSSARY

AGENCIES: Federal agency securities and/or Government-sponsored enterprises.

ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR): The official annual re port for the City of Hanford. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules neces sary to demonstrate compli ance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange acce pted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

BENCHMARK: A comparative base for measuring the perfo rmance or risk tolerance of the investment portfolio. A benchmark should represen t a close correlation to the level of risk and the average duration of the portfolio’s investments.

BROKER: A broker brings buyers and sellers together for a commission.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large- denomination CD’s are typically negotiable.

COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

COMMERCIAL PAPER: Commercial paper is the trade name applied to unsecured promissory notes issued by finance and industrial companies to raise funds on a short term basis.

DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions buying and selling for his own account.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

FEDERAL AGENCY: Federal agencies are special government orga nizations set up for a specific purpose.

Some examples include: FAMCA, FFCB, FHLB, FHLMC, and FNMA.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per entity.

FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.

LOCAL AGENCY INVESTMENT FUND (LAIF): LAIF was established by the State to enable treasurers
to place funds in a pool for investment. Each agency is limited to an investment of $65 million per account.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.

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10 MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase – reverse repurchas e agreements that establish each part y’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller borrower.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded.

NATIONALLY RECOGNIZED STATISTICA L-RATING ORGANIZATION (NRSRO): A nationally recognized statistical rating corporation (NRSRO) is a cred it rating agency that issues credit rating that the U.S.

Securities and Exchange Commission (SEC) permits other financial firms to use for certain regulatory purposes.

NATIONAL CREDIT UNION ADMINISTRATION (NCUA): Created by the U.S. C ongress in 1970, the National Credit Union Administration is an independent federal agency that insures deposits at federally insured credit unions, protects the members who own credit unions , and charters and regulates federal credit unions.

Insured CDs up to a 250,000 limit.

PORTFOLIO: Collection of securities held by an investor.

PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Fe deral Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securitie s and Exchange Commission (SEC) – registered securities broker-dealers, banks, and a few unregulated firms.

PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the cu stody state – the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price.

This may be the amortized yield to maturity on a bond the current income return.

REPURCHASE AGREEMENT (RP OR REPO): A holder of securi ties sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixe d date. The security “buye r” in effect lends the “seller” money for the period of the agreement, and the terms of the agreem ent are structure to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money, or increasing bank reserves.

SAFEKEEPING: A service to customers rendered by banks fo r a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES & EXCHANGE COMMISSION (SEC): Agency created by Congre ss to protect investors in securities transactions by administering securities legislation.

SEC RULE 15C3-1: See Uniform Net Capital Rule.

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11 TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years

UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all mone y owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

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11.P.

AGENDA

STAFF REPORT

MEETING DATE: 7/18/2023 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Approval of purchase orders over $50,000 for the Finance Department and all departments for a total of $308,587 for fiscal year 2023/2024

RECOMMENDATION:

Staff recommends that City Council approve the following purchase orders for a total of $308,587 for fiscal year 2023/2024.

RECOMMENDED MOTION:

I move to approve the Purchase Orders listed in this report for a total of $308,587 for fiscal year 2023/2024.

BACKGROUND:

Per Hanford Municipal Code 2.48.060 "Purchases exceeding fifty thousand dollars", the City Council has the sole authority to award. Additionally, purchases of $2,500 or more must have bids either informally, formally or a sole source justification provided.

The purchase orders listed above cover annual contracts for general services provided to the City of Hanford. They include annual contracts for copiers and printing services, broadband service and printing and postage for utility billing and business licenses. All of these contracts will be monitored

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by staff on an annual basis for renewal and need to rebid to keep costs as low as possible.

FISCAL IMPACT:

Purchase orders total $308,587 of approved spending. These expenses will come out of previously approved budget appropriations across all impacted departments for fiscal year 2023/2024.

ATTACHMENTS:

None

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12.A.

AGENDA

STAFF REPORT

MEETING DATE: 7/18/2023 AGENDA SECTION: PUBLIC HEARING

SUBJECT:

Public hearing to adopt Resolution No. 23-12-R for the purpose of establishing a Rule 20A Underground Utility District on East Lacey Boulevard from Jessie Avenue to East of Wilson Lane.

RECOMMENDATION:

Recommendation:

That the City Council conduct a public hearing on July 18, 2023 to adopt Resolution No. 23-12-R, which will establish a Rule 20A Underground Utility District on East Lacey Boulevard from Jessie Avenue to East of Wilson Lane.

Recommended Motion:

I move to adopt Resolution 23-15-R.

BACKGROUND:

This project will fund a portion of the utility relocation costs for the city's East Lacey Improvement project. The City receives an annual allocation of funding from Southern California Edison (SCE) to fund the "undergrounding" of utility lines. Staff is recommending that Council approve this item and allow the funding to offset already programmed funding for that project, which will all the first phase of the project to include more area.

Rule 20A Project Management has reviewed the proposed Rule 20A project in the City of Hanford on E. Lacey Blvd. The Rough Order of Magnitude (ROM) estimate for the project is $1,300,000 expressed in 2025 dollars. The estimated trench footage for the project is 1,434 feet and includes all mainline trenching as well as crossings, streetlights, and service laterals. The cost of the project was escalated to the year 2025, which is the earliest anticipated year that construction can be scheduled and includes an estimated accuracy variance of + 40%. Should the City and SCE agree to proceed with the Rule 20A project, the scope of work and estimated cost of the project can be updated with greater accuracy after the final design is completed.

Based on the municipality’s allocation balance and the ROM estimate of $1,300,000, this is a viable project. SCE will review and update the estimate prior to the start of construction to ensure an adequate allocation balance exists before proceeding with construction. SCE’s ability to proceed with this project is dependent upon the annual CPUC approved budget for the Rule 20A program, providing the availability of capital funding and resources for the Rule 20A projects. Funding levels for the Rule 20A program may directly impact future allocations and the anticipated year of construction

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for this project. The ROM estimate is based on the following assumptions:

• SCE has an available budget to proceed with the project. • The City of Hanford has accumulated an adequate allocation balance from the Rule 20A program.
• The City of Hanford has established an underground utility district by resolution or ordinance for this project area.

Adoption of Resolution 23-12R will allow SCE to proceed with design and lock in the project funds available. A Notice of Public Hearing was advertised locally in the Hanford Sentinel on July 1, 2023.

See attached copy for review.

FISCAL IMPACT:

All costs associated with the undergrounding of the utilities within this district will be borne by the Rule 20A credits with Southern California Edison Company, including the re-connection of services to all existing properties located within the proposed underground district boundaries. Any additional cost associated with the Rule 20A Underground District will be borne by the East Lacey Pedestrian Improvement Project.

ATTACHMENTS:

1. Resolution No 23-12-R

2. Exhibit A - Rule 20 Limits

3. Affiavit AD#217556

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RESOLUTION NO. 23-12-R

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HANFORD

ESTABLISHING AN UNDERGROUND UTILITY DISTRICT
IN LACEY BOULEVARD FROM JESSIE AVENUE TO EAST OF WILSON LANE.

At a regular meeting of the City Council of the City of Hanford, duly called and held on July 18, 2023, a public hearing was held to ascertain whether the public necessity, health, safety, or welfare requires the removal of poles, overhead wires, and associated overhead structures and the underground installation of wires and facilities for supplying electric, communication, or similar or associated service in Lacey Boulevard from Jessie Avenue to east of Wilson Lane (See Exhibit "A" attached), and upon a motion by Council Member _________________ and seconded by Council Member __________________ and duly carried, the following resolution was adopted;
WHEREAS notice of such hearing was given to all affected property owners as shown on the last equalized assessment roll and utilities concerned in the manner and for the time required under Chapter 13.24 of the Hanford Municipal Code ("HMC"); and WHEREAS such hearing has been duly and regularly held and all persons interested have been given opportunity to be heard.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hanford hereby finds and determines that the public necessity, health, safety, or welfare requires the removal of poles, overhead wires, and associated overhead structures and the underground installation of wires and facilities for supplying electric, communication, or similar or associated service in Lacey Boulevard from Jessie Avenue to east of Wilson Lane.

BE IT FURTHER RESOLVED that the City Council of the City of Hanford finds:
(A) That such undergrounding will avoid or eliminate an unusually heavy

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concentration of overhead facilities.
(B) The street or road right-of-way is extensively used by the general public and carries a heavy volume of pedestrian or vehicular traffic. (C) That such undergrounding is necessary to clear the street right -of-way for future street improvements.

BE IT FURTHER RESOLVED that all poles, overhead wires and associated overhead structures shall be removed and underground installations made in said Underground Ut ility District with the following times and conditions:
(A) Installation of underground conduits and structures by utility companies not later than Dec 2026.
(B) Installation and reconnection of property owner services to underground facilities by utility companies not later than Dec 2026.
(C) Removal of poles, overhead wires, and other associated overhead structures not later than Dec 2026.

BE IT FURTHER RESOLVED that the City Clerk, within ten (10) days after the adoption of this resolution, shall mail a copy hereof to affected property owners as such are shown on the last equalized roll and to the affected utilities.

Passed and adopted at a regular meeting of the City Council of the City of Hanford duly called and held on the 18th day of July 2023, by the following vote:

AYES: _______________________________________________________________ NOES: _______________________________________________________________ ABSTAIN: _______________________________________________________________ ABSENT: _______________________________________________________________

_____________________

TRAVIS PADEN
MAYOR of the City of Hanford

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Attest:

________________
Natalie Corral

CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF KINGS ) ss

CITY OF HANFORD

I, Natalie Corral, City Clerk of the City of Hanford, do hereby certify the foregoing Resolution was duly passed and adopted at a regular meeting of the City Council of the City of Hanford held on the ________________ day of _______________, 2023.

Date: _______________ __________________________
Natalie Corral, City Clerk

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East Lacey Boulevard
10th Avenue to UPRR
Rule 20-A Proposal EXHIBIT A
1000 ft
N➤➤
N

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13.A.

AGENDA

STAFF REPORT

MEETING DATE: 7/18/2023 AGENDA SECTION: GENERAL BUSINESS

SUBJECT:

Adoption of Resolution No. 23-23-R, establishing the Fiscal Year 2023-2024 tax levy amount for Community Facilities District 2022-01 (Live Oak) and Direction from Council regarding the types of services that future that will be included in Community Facilities Districts

RECOMMENDATION:

Recommendation: Recommendation #1: That the City Council, by motion, approve Resolution No. 23-23-R, which establishes the Fiscal Year 2023-2024 tax levy amount for Community Facilities District 2022-01 (Live Oak).

Recommendation #2: That the Council give direction as to the types of services that future Community Facilities Districts will provide.

Recommended Motion: I move to approve Resolution No. 23-23-R.

BACKGROUND:

Live Oak CFD FY24 Tax Levy.

In 2022, the Council approved Resolution 22-11-R, which formed Community Facilities District 2022- 01 (Live Oak) (“CFD”). The CFD maintains various improvements within its boundaries, including park amenities, street lighting, stormwater facilities, and landscaping and related improvements. A copy of Resolution 22-11-R is attached. Also attached is the CFD Special Tax Analysis (“Analysis”) that was prepared prior to the CFD’s formation; the Analysis projects the CFD’s annual costs and tax income.

The Rate and Method of Apportionment (“RMA”) that is attached to Resolution 22-11-R as Exhibit “B” describes the manner in which the taxes levied by the CFD are to be calculated and apportioned.

Taxes are adjusted each year to reflect the change in the Consumer Price Index (“CPI”), with a minimum increase of three and one-half (3.50%) and a maximum increase of six percent (6.00%) each year. The FY23 tax rate was eight hundred ninety-seven dollars ($897.00) per: (i) developed residential parcel; and (ii) undeveloped residential parcel for which a Final Map had been recorded.

The CPI increased by four and 9/10 percent (4.90%) between 2022 and 2023, and the annual CFD tax increased by that amount will be nine hundred forty-one dollars ($941.00) for FY24.

With the Council’s adoption of Resolution 23-23-R, the Council will approve the nine hundred forty- one dollars ($941.00) tax levy for FY24 and will direct the City’s Finance Director to submit the levy to the Kings County Tax Collector for collection through tax bills issued for parcels that are obligated to

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pay the CFD taxes.

Services to be Provided by Future CFDs.

A CFD may provide various services within its boundaries, including:

• Police protection services.

• Fire protection services.

• Recreation program services.

• Maintenance of lighting of parks, streets, and open space.

• Flood and storm protection services.

• Maintenance and operation of any real property or other tangible property with an estimated useful life of five (5) or more years (e.g., parks, streets, etc.).

CFD taxes mainly only finance services to the extent that they are in addition to those provided in the area at the time the CFD is formed. For example, if the City already provides police protection services within a CFD’s boundaries at the time the CFD is formed, CFD taxes may not include the costs of the existing services.

It is requested that the Council provide direction as to the types of services that CFDs formed in the future will provide. Will CFDs provide services that exceed the services provided by the Live Oak CFD?

FISCAL IMPACT:

It is projected that the nine hundred forty-one ($941.00) FY24 Live Oak CFD tax will generate approximately one hundred ninety-four thousand, four hundred twenty-four dollars ($194,424.00) in revenue to pay the CFD’s expenses.

ATTACHMENTS:

1. 2023.07.03 Resolution re FY24 Tax Levy (1) (2) (1)

2. Live Oak CFD Analysis v4 (5)

3. 22-11-R - Signed (3)

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1 RESOLUTION NO. 23-23-R

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HANFORD,

CALIFORNIA, TO LEVY SPECIAL TAXES WITHIN
COMMUNITY FACILITIES DISTRICT NO. 2022-01 (LIVE OAK)
At a regular meeting of the City Council of the City of Hanford, duly called and held on July 18, 2023, at 7:00 p.m., it was moved by Council Member _________________, and seconded by Council Member ____________________, and duly carried that the following resolutions be adopted:

WHEREAS, Community Facilities District 2022-01 (Live Oak) (“CFD”) was established under Resolution 22-11-R pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (“Act”), Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code; and
WHEREAS, the City Council of the City of Hanford (“City Council”) previously adopted Ordinance 22-04, under which it authorized and levied special taxes upon parcels within the CFD’s boundaries; and
WHEREAS, it is necessary that the City Council levy special taxes during the 2023-2024 tax year upon parcels within the CFD pursuant to Section 53340 of the California Government Code (“Section 53340”); and
WHEREAS, pursuant to Section 53340(b), the City Council may, by resolution, provide for the levy of special taxes in the current and future tax years on parcels of taxable property within the CFD at the same rate or lower rate provided by Ordinance 22-04 if such resolution is adopted and a certified list of all parcels subject to the special taxes being levied is filed with the Kings County Department of Finance (“County”) on or before the tenth (10th) day of August of each tax year, or later with prior consent of the County; and
WHEREAS, Section 53340 permits the City Council to authorize a City official to file the certified list of parcels subject to the CFD special taxes with the County, and the City Council desires to authorize the City’s Finance Director to do so for the 2023-2024 tax year, and all subsequent tax years; and
WHEREAS, the rates of the special taxes that will be levied on the taxable parcels within the CFD will not exceed the rates that are authorized by Ordinance 22-04 and Resolution 22-11- R; and
WHEREAS, the special taxes identified herein are calculated based upon the estimated cost of services to be provided by the CFD and are not based upon property valuation.

NOW, THEREFORE, BE IT RESOLVED, the Maximum Special Tax for the CFD for tax year 2023-2024 shall be nine hundred forty-one dollars ($941.00) per: (i) residential Developed Property (as defined in Resolution 22-11-R); and (ii) residential Final Mapped Property (as defined in Resolution 22-11-R).

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2 BE IT FURTHER RESOLVED, the tax year 2023-2024 special taxes levied on each residential Developed Property and each residential Final Mapped Property identified in the attached Exhibit “A,” which is incorporated herein by reference, shall be nine hundred forty-one dollars ($941.00) per parcel.

BE IT FURTHER RESOLVED, the special taxes levied hereunder shall be collected in the same manner as ordinary ad valorem property taxes and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes.

BE IT FURTHER RESOLVED, the City’s Director of Finance is authorized and directed to file a true and correct copy of this Resolution with the County on or before the tenth (10 th) day of August, or later with the prior consent of the County, together with a request that the special taxes be collected on the tax bills with the ordinary ad valorem property taxes to be levied on and collected from the owners of the parcels listed in the attached Exhibit “A.” BE IT FURTHER RESOLVED, City staff is hereby authorized and directed to take all such necessary and further actions to carry out the directives and requirements of this Resolution.

BE IT FURTHER RESOLVED, this Resolution shall become effective upon its adoption.

PASSED, ADOPTED AND APPROVED this 18 th day of July, 2023 by the following vote:

AYES:________________________________________________________________________ NOES:________________________________________________________________________ ABSTAIN: ____________________________________________________________________ ABSENT: _____________________________________________________________________ Approved: _______________________________

TRAVIS PADEN
MAYOR
Attest:
________________________

NATALIE CORRAL

CITY CLERK

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3 STATE OF CALIFORNIA)
COUNTY OF KINGS ) ss

CITY OF HANFORD )
I, Natalie Corral, City Clerk of the City of Hanford, do hereby certify the foregoing Resolution was duly passed and adopted at a regular meeting of the City Council of the City of Hanford held on the 18th day of July, 2023.

Date:

City Clerk

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EXHIBIT “A”

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CFD Map

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EXHIBIT “B”

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Services Financed by CFD Special Tax
* * * * *
Community Facilities District No. 2022-01 (Live Oak) (“CFD”) will finance, in whole or in part, the direct and indirect costs of the following services (“services” shall have the meaning given to that term in the Mello-Roos Community Facilities Act of 1982), including all related administrative costs and expenses, and reserves for the replacement of improvements, facilities, and equipment.

Parks
Maintenance, including servicing, repair, improvement, replacement, and removal of parks and park amenities, including, without limitation, landscaping, buildings, sports fields, sports courts, playground equipment, play courts, play structures, picnic tables, lighting, drinking fountains, restrooms, barbeques, and other park improvements and amenities within the CFD’s boundaries. Maintenance also includes, without limitation, cleaning and removal of graffiti and payment of electric, water, and other utility costs.

Street Lighting
Maintenance, including, without limitation, servicing, repair, improvement, replacement, and removal of street light improvements, including, without limitation, poles, fixtures, conduits, equipment, guys, anchors, posts, pedestals, and metering devices, within the CFD’s boundaries.

Maintenance also includes cleaning and removal of graffiti and payment of electric, water, and other utility costs.

Stormwater Facilities
Maintenance, including, without limitation, servicing, repair, improvement, replacement, and removal of stormwater drainage facilities within the CFD’s boundaries (includes, without limitation, field inspections, record keeping, cost of permits, and regulatory fees, environmental mitigation monitoring, reporting, vegetation management and weed abatement, and removal of silt, sediment, trash, and debris). Maintenance also includes cleaning and removal of graffiti and payment of electric, water, and other utility costs.

Landscaping and Other Public Improvements
Maintenance, including servicing, repair, improvement, replacement, and removal of parkways, landscape setbacks, landscaped areas, landscaped roadway medians, open space, publicly owned masonry walls, fences, monuments, and features, trails, walking and bicycle paths, etc. Maintenance also includes, without limitation, cleaning and removal of graffiti and payment of electric, water, and other utility costs.

Page 603 of 665 ends

Additional Costs and Expenses
In addition, the following costs will also be financed by the special taxes levied within the CFD and will be allocated to each improvement described above based upon their pro rata share of needed administrative costs, operating reserves, and capital reserves, and actual or estimated delinquencies:

1. Administrative expenses, including, without limitation, the costs incurred to determine, levy, and collect and enforce the special taxes, compensation of City of Hanford employees for administrative work performed in relation to the CFD, the fees of consultants and legal counsel, the costs of collecting special tax installments on general tax rolls, preparation of required reports, and all other costs incurred in the administration and operation of the CFD by the City of Hanford;

2. Any amounts needed for CFD operating reserves and capital reserves;

3. Amounts deposited into a sinking fund for services that could not otherwise be funded in any given fiscal year; and

4. Any amounts needed to cure actual and estimated delinquencies in special taxes for the future, current, and previous fiscal years.

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EXHIBIT “C”

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EXHIBIT “D”

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February 1, 2022

CITY OF HANFORD
PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2022-01

CFD SPECIAL TAX ANALYSIS
Prepared by: DTA
(LIVE OAK)

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CFD SPECIAL TAX SUMMARY

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CITY OF HANFORD

SPECIAL TAX SUMMARY
Table 1: Special Tax Summary
Amount
CFD Special Tax Requirement at CFD Build-out (2022 Dollar) Annual Maintenance Costs [1] $1,102,148
Annualized Replacement Costs [2] $16,658
CFD Administrative Expenses $35,000
Grand Total $1,153,806
Development Assumptions
Total Residential Homes at CFD Build-out 1,286
Taxable Acres 297
Initial Maximum Special Tax Rate (Fiscal Year 2022-23)
Per Residential Home $897
Per Commercial Acre [3] $3,885
Annul Increase in Maximum Special Tax
Minimum Allowed 3.50%
Maximum Allowed 6.00%
Notes:
[1] See Table 2 below.
[2] See Table 3 below.
[3] Based on the projected taxable acres.
* All Figures subject to roundin g

PROPOSED COMMUNITY FACILITIES DISTRICT
NO. 2022-01 (LIVE OAK)
Description

Page 1 of 2 ends

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CITY OF HANFORD

SPECIAL TAX SUMMARY

PROPOSED COMMUNITY FACILITIES DISTRICT
NO. 2022-01 (LIVE OAK)
Table 2: Annual Maintenance Cost Estimates
Costs [1]
Masonry Walls $16,006
Concrete Walk $26,766
Street Lights - 70 Watt Electrolier $28,700
Street Lights - 100 Watt Electrolier $6,068
Street Lights - 150 Watt Electrolier $6,888
Landscape - Streetscape $326,145
Landscape - Median $7,784
Landscape - Park Area $234,442
Landscape - Basin $241,786
Landscape - Outlots $100,434
Water Usage - Streetscape $38,370
Water Usage - Median $916
Water Usage - Park Area $27,581
Water Usage - Basin $28,445
Water Usage - Outlots $11,816
Grand Total $1,102,148
Notes:
[1] Cost estimates at the CFD build-out in 2022 dollar.

Source: NorthStar Engineering Group, Inc.
* All Figures subject to roundin g
Table 3: Replacement Cost Estimates
Costs [1]
Total Annualized
Replace Every 50 Years
Masonry Walls $40,018 $800
Concrete Walk $80,297 $1,606
Subtotal $120,315 $2,406
Replace Every 25 Years
Landscape - Streetscape $143,888 $5,756
Landscape - Median $2,289 $92
Landscape - Park Area $137,907 $5,516
Landscape - Basin $25,535 $1,021
Landscape - Outlots $46,672 $1,867
Subtotal $356,292 $14,252
Grand Total $476,607 $16,658
Notes:
[1] Cost estimates at the CFD build-out in 2022 dollar.

Source: NorthStar Engineering Group, Inc.
* All Figures subject to roundin g
Description
Description

Page 2 of 2 ends

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CFD CASH FLOWS

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CFD Cash Flow Draft - Unaudited Page 1
FISCAL YEAR TOTAL 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 I. Projected Sources of Funds
Annual CFD Special Taxes $327,296,811 $89,721 $219,752 $434,838 $664,738 $886,366 $1,085,693 $1,236,867 Reserve Fund $3,636,213 $0 $0 $0 $0 $0 $0 $0
-------------------------------------------- --------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total Sources of Funds $330,933,024 $89,721 $219,752 $434,838 $664,738 $886,366 $1,085,693 $1,236,867 II. Projected Uses of Funds
CFD Administrative Expenses [1] $3,523,672 $35,000 $35,350 $35,704 $36,061 $36,421 $36,785 $37,153 CFD Services Costs
Maintenance Costs [2]
Masonry Walls $4,551,398 $515 $1,944 $4,501 $7,235 $10,155 $13,271 $15,857 Concrete Walk $7,618,082 $1,172 $3,979 $8,401 $13,128 $18,176 $23,561 $27,629 Street Lights $11,856,757 $1,847 $6,245 $13,138 $20,507 $28,375 $36,768 $43,080 Landscape $259,033,462 $33,885 $121,334 $268,976 $426,805 $595,352 $775,174 $918,507 Water Usage $30,474,529 $3,986 $14,275 $31,644 $50,212 $70,041 $91,197 $108,060 Replacement Costs [3]
Masonry Walls (Every 50 Years) $284,901 $0 $0 $0 $0 $0 $0 $0 Concrete Walk (Every 50 Years) $564,856 $0 $0 $0 $0 $0 $0 $0 Landscape (Every 25 Years) $3,596,159 $0 $0 $0 $0 $0 $0 $0 Reserve Fund Replenishment [4] $9,429,209 $13,316 $36,625 $72,473 $110,790 $127,846 $108,936 $86,581 -------------------------------------------- --------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total Uses of Funds $330,933,024 $89,721 $219,752 $434,838 $664,738 $886,366 $1,085,693 $1,236,867 [1] Annual escalation at 1.00%.
[2] Annual escalation at 3.50%.
[3] Annual escalation at 3.50%.
[4] Not to exceed 20.00% of annual CFD
services costs.

Annual Surplus/(Deficit) $0 $0 $0 $0 $0 $0 $0 $0
III. Reserve Fund
Beginning Fund Balance NA $0 $13,316 $49,941 $122,414 $233,203 $361,050 $469,986 Budgeted Fund Replenishment NA $13,316 $36,625 $72,473 $110,790 $127,846 $108,936 $86,581 Use of Fund NA $0 $0 $0 $0 $0 $0 $0
-------------------------------------------- --------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ Projected Ending Fund Balance NA $13,316 $49,941 $122,414 $233,203 $361,050 $469,986 $556,566 Desired Reserve Fund Balance [5] NA $20,702 $73,888 $163,331 $258,944 $361,050 $469,986 $556,566 Desired Reserve Funded Percentage NA 64.32% 67.59% 74.95% 90.06% 100.00% 100.00% 100.00% [5] Equals to 50.00% of annual CFD
services costs.

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CFD Cash Flow Draft - Unaudited Page 2
FISCAL YEAR TOTAL 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 IV. Maximum Special Tax Rate [6]
"Rate" per Developed Dwelling Unit NA $897 $929 $961 $995 $1,030 $1,066 $1,103 "Rate" per Final Mapped Residential Lot NA $897 $929 $961 $995 $1,030 $1,066 $1,103 [6] Increases annually at minimum
allowed 3.50%.

V. Maximum Special Taxes
Developed Dwelling Units $328,392,282 $50,243 $170,864 $361,377 $565,017 $782,468 $1,014,450 $1,190,023 Final Mapped Residential Lots $1,139,718 $39,477 $126,291 $157,622 $190,992 $225,474 $138,528 $116,907 -------------------------------------------- --------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total Maximum Special Taxes $329,532,000 $89,721 $297,154 $518,999 $756,008 $1,007,943 $1,152,977 $1,306,930 VI. Projected Special Taxes
Developed Dwelling Units $326,753,701 $50,243 $170,864 $361,377 $565,017 $782,468 $1,014,450 $1,190,023 Final Mapped Residential Lots $543,109 $39,477 $48,888 $73,461 $99,721 $103,898 $71,243 $46,844 -------------------------------------------- --------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total Projected Special Taxes NA $89,721 $219,752 $434,838 $664,738 $886,366 $1,085,693 $1,236,867 VII. Projected Special Tax Rate
"Rate" per Developed Dwelling Unit NA $897 $929 $961 $995 $1,030 $1,066 $1,103 "Rate" per Final Mapped Residential Lot NA $897 $359 $448 $519 $474 $548 $442 VIII. Developed Dwelling Units
Live Oak East NA 56 152 248 344 440 536 567
Live Oak West NA 0 32 128 224 320 416 512
-------------------------------------------- --------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total Developed Dwelling Units NA 56 184 376 568 760 952 1,079 IX. Final Mapped Residential Lots
Live Oak East NA 44 65 86 107 127 31 0
Live Oak West NA 0 71 78 85 92 99 106
-------------------------------------------- --------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total Final Mapped Residential Lots NA 44 136 164 192 219 130 106

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CFD Cash Flow Draft - Unaudited Page 3

FISCAL YEAR
I. Projected Sources of Funds
Annual CFD Special Taxes
Reserve Fund
--------------------------------------------
Total Sources of Funds
II. Projected Uses of Funds
CFD Administrative Expenses [1]
CFD Services Costs
Maintenance Costs [2]
Masonry Walls
Concrete Walk
Street Lights
Landscape
Water Usage
Replacement Costs [3]
Masonry Walls (Every 50 Years)
Concrete Walk (Every 50 Years)
Landscape (Every 25 Years)
Reserve Fund Replenishment [4]
--------------------------------------------
Total Uses of Funds
[1] Annual escalation at 1.00%.
[2] Annual escalation at 3.50%.
[3] Annual escalation at 3.50%.
[4] Not to exceed 20.00% of annual CFD
services costs.

Annual Surplus/(Deficit)
III. Reserve Fund
Beginning Fund Balance
Budgeted Fund Replenishment
Use of Fund
--------------------------------------------
Projected Ending Fund Balance
Desired Reserve Fund Balance [5]
Desired Reserve Funded Percentage
[5] Equals to 50.00% of annual CFD
services costs.
2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37 $1,383,113 $1,519,342 $1,572,519 $1,627,557 $1,684,522 $1,743,480 $1,801,140 $1,854,437 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $1,383,113 $1,519,342 $1,572,519 $1,627,557 $1,684,522 $1,743,480 $1,801,140 $1,854,437 $37,525 $37,900 $38,279 $38,662 $39,048 $39,439 $39,833 $40,232 $18,245 $20,781 $21,815 $22,579 $23,369 $24,187 $25,033 $25,909 $31,127 $34,836 $36,479 $37,756 $39,077 $40,445 $41,860 $43,325 $48,488 $54,222 $56,773 $58,760 $60,816 $62,945 $65,148 $67,428 $1,047,059 $1,183,485 $1,241,043 $1,284,479 $1,329,436 $1,375,966 $1,424,125 $1,473,969 $123,183 $139,234 $146,005 $151,115 $156,404 $161,878 $167,544 $173,408 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$77,485 $48,885 $32,126 $34,207 $36,371 $38,620 $37,596 $30,165 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $1,383,113 $1,519,342 $1,572,519 $1,627,557 $1,684,522 $1,743,480 $1,801,140 $1,854,437 $0 $0 $0 $0 $0 $0 $0 $0
$556,566 $634,051 $682,936 $715,062 $749,269 $785,639 $824,259 $861,855 $77,485 $48,885 $32,126 $34,207 $36,371 $38,620 $37,596 $30,165 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $634,051 $682,936 $715,062 $749,269 $785,639 $824,259 $861,855 $892,020 $634,051 $716,279 $751,057 $777,344 $804,551 $832,711 $861,855 $892,020 100.00% 95.35% 95.21% 96.39% 97.65% 98.99% 100.00% 100.00%

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CFD Cash Flow Draft - Unaudited Page 4

FISCAL YEAR
IV. Maximum Special Tax Rate [6]
"Rate" per Developed Dwelling Unit
"Rate" per Final Mapped Residential Lot
[6] Increases annually at minimum
allowed 3.50%.

V. Maximum Special Taxes
Developed Dwelling Units
Final Mapped Residential Lots
--------------------------------------------
Total Maximum Special Taxes
VI. Projected Special Taxes
Developed Dwelling Units
Final Mapped Residential Lots
--------------------------------------------
Total Projected Special Taxes
VII. Projected Special Tax Rate
"Rate" per Developed Dwelling Unit
"Rate" per Final Mapped Residential Lot
VIII. Developed Dwelling Units
Live Oak East
Live Oak West
--------------------------------------------
Total Developed Dwelling Units
IX. Final Mapped Residential Lots
Live Oak East
Live Oak West
--------------------------------------------
Total Final Mapped Residential Lots
2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37 $1,141 $1,181 $1,223 $1,266 $1,310 $1,356 $1,403 $1,452 $1,141 $1,181 $1,223 $1,266 $1,310 $1,356 $1,403 $1,452 $1,341,257 $1,501,620 $1,572,519 $1,627,557 $1,684,522 $1,743,480 $1,804,502 $1,867,659 $126,706 $17,722 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $1,467,963 $1,519,342 $1,572,519 $1,627,557 $1,684,522 $1,743,480 $1,804,502 $1,867,659 $1,341,257 $1,501,620 $1,572,519 $1,627,557 $1,684,522 $1,743,480 $1,801,140 $1,854,437 $41,855 $17,722 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $1,383,113 $1,519,342 $1,572,519 $1,627,557 $1,684,522 $1,743,480 $1,801,140 $1,854,437 $1,141 $1,181 $1,223 $1,266 $1,310 $1,356 $1,401 $1,442 $377 $1,181 $0 $0 $0 $0 $0 $0
567 567 567 567 567 567 567 567
608 704 719 719 719 719 719 719
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,175 1,271 1,286 1,286 1,286 1,286 1,286 1,286
0 0 0 0 0 0 0 0
111 15 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 111 15 0 0 0 0 0 0

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CFD Cash Flow Draft - Unaudited Page 5

Annual Surplus/(Deficit)
III. Reserve Fund
Beginning Fund Balance
Budgeted Fund Replenishment
Use of Fund
--------------------------------------------
Projected Ending Fund Balance
Desired Reserve Fund Balance [5]
Desired Reserve Funded Percentage
[5] Equals to 50.00% of annual CFD
services costs.
2037-38 2038-39 2039-40 2040-41 2041-42 2042-43 2043-44 2044-45 $1,918,337 $1,984,463 $2,052,893 $2,123,708 $2,196,991 $2,272,829 $2,351,310 $2,432,527 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $1,918,337 $1,984,463 $2,052,893 $2,123,708 $2,196,991 $2,272,829 $2,351,310 $2,432,527 $40,634 $41,040 $41,451 $41,865 $42,284 $42,707 $43,134 $43,565 $26,816 $27,755 $28,726 $29,732 $30,772 $31,849 $32,964 $34,118 $44,842 $46,411 $48,036 $49,717 $51,457 $53,258 $55,122 $57,051 $69,788 $72,231 $74,759 $77,376 $80,084 $82,887 $85,788 $88,790 $1,525,558 $1,578,953 $1,634,216 $1,691,414 $1,750,613 $1,811,885 $1,875,301 $1,940,936 $179,477 $185,759 $192,261 $198,990 $205,955 $213,163 $220,624 $228,345 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$31,221 $32,313 $33,444 $34,615 $35,826 $37,080 $38,378 $39,721 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $1,918,337 $1,984,463 $2,052,893 $2,123,708 $2,196,991 $2,272,829 $2,351,310 $2,432,527 $0 $0 $0 $0 $0 $0 $0 $0
$892,020 $923,241 $955,555 $988,999 $1,023,614 $1,059,440 $1,096,521 $1,134,899 $31,221 $32,313 $33,444 $34,615 $35,826 $37,080 $38,378 $39,721 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $923,241 $955,555 $988,999 $1,023,614 $1,059,440 $1,096,521 $1,134,899 $1,174,620 $923,241 $955,555 $988,999 $1,023,614 $1,059,440 $1,096,521 $1,134,899 $1,174,620 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

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CFD Cash Flow Draft - Unaudited Page 6

FISCAL YEAR
IV. Maximum Special Tax Rate [6]
"Rate" per Developed Dwelling Unit
"Rate" per Final Mapped Residential Lot
[6] Increases annually at minimum
allowed 3.50%.

V. Maximum Special Taxes
Developed Dwelling Units
Final Mapped Residential Lots
--------------------------------------------
Total Maximum Special Taxes
VI. Projected Special Taxes
Developed Dwelling Units
Final Mapped Residential Lots
--------------------------------------------
Total Projected Special Taxes
VII. Projected Special Tax Rate
"Rate" per Developed Dwelling Unit
"Rate" per Final Mapped Residential Lot
VIII. Developed Dwelling Units
Live Oak East
Live Oak West
--------------------------------------------
Total Developed Dwelling Units
IX. Final Mapped Residential Lots
Live Oak East
Live Oak West
--------------------------------------------
Total Final Mapped Residential Lots
2037-38 2038-39 2039-40 2040-41 2041-42 2042-43 2043-44 2044-45 $1,503 $1,556 $1,610 $1,667 $1,725 $1,785 $1,848 $1,912 $1,503 $1,556 $1,610 $1,667 $1,725 $1,785 $1,848 $1,912 $1,933,027 $2,000,683 $2,070,707 $2,143,182 $2,218,193 $2,295,830 $2,376,184 $2,459,350 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $1,933,027 $2,000,683 $2,070,707 $2,143,182 $2,218,193 $2,295,830 $2,376,184 $2,459,350 $1,918,337 $1,984,463 $2,052,893 $2,123,708 $2,196,991 $2,272,829 $2,351,310 $2,432,527 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $1,918,337 $1,984,463 $2,052,893 $2,123,708 $2,196,991 $2,272,829 $2,351,310 $2,432,527 $1,492 $1,543 $1,596 $1,651 $1,708 $1,767 $1,828 $1,892 $0 $0 $0 $0 $0 $0 $0 $0
567 567 567 567 567 567 567 567
719 719 719 719 719 719 719 719
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,286 1,286 1,286 1,286 1,286 1,286 1,286 1,286
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 0 0 0 0 0 0 0 0

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CFD Cash Flow Draft - Unaudited Page 7

Annual Surplus/(Deficit)
III. Reserve Fund
Beginning Fund Balance
Budgeted Fund Replenishment
Use of Fund
--------------------------------------------
Projected Ending Fund Balance
Desired Reserve Fund Balance [5]
Desired Reserve Funded Percentage
[5] Equals to 50.00% of annual CFD
services costs.
2045-46 2046-47 2047-48 2048-49 2049-50 2050-51 2051-52 2052-53 $2,516,577 $2,603,557 $2,693,570 $2,786,723 $2,883,125 $2,982,890 $3,086,135 $3,238,495 $0 $0 $0 $0 $0 $0 $0 $265,571
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $2,516,577 $2,603,557 $2,693,570 $2,786,723 $2,883,125 $2,982,890 $3,086,135 $3,504,066 $44,001 $44,441 $44,885 $45,334 $45,787 $46,245 $46,708 $47,175 $35,312 $36,548 $37,827 $39,151 $40,521 $41,940 $43,407 $44,927 $59,048 $61,115 $63,254 $65,468 $67,759 $70,130 $72,585 $75,125 $91,898 $95,114 $98,443 $101,889 $105,455 $109,146 $112,966 $116,920 $2,008,869 $2,079,179 $2,151,951 $2,227,269 $2,305,223 $2,385,906 $2,469,413 $2,555,842 $236,338 $244,609 $253,171 $262,032 $271,203 $280,695 $290,519 $300,687 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $363,390
$41,112 $42,551 $44,040 $45,581 $47,177 $48,828 $50,537 $0 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $2,516,577 $2,603,557 $2,693,570 $2,786,723 $2,883,125 $2,982,890 $3,086,135 $3,504,066 $0 $0 $0 $0 $0 $0 $0 $0
$1,174,620 $1,215,732 $1,258,283 $1,302,323 $1,347,904 $1,395,081 $1,443,908 $1,494,445 $41,112 $42,551 $44,040 $45,581 $47,177 $48,828 $50,537 $0 $0 $0 $0 $0 $0 $0 $0 ($265,571)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $1,215,732 $1,258,283 $1,302,323 $1,347,904 $1,395,081 $1,443,908 $1,494,445 $1,228,874 $1,215,732 $1,258,283 $1,302,323 $1,347,904 $1,395,081 $1,443,908 $1,494,445 $1,728,446 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 71.10%

Page 619 of 665 ends

CFD Cash Flow Draft - Unaudited Page 8

FISCAL YEAR
IV. Maximum Special Tax Rate [6]
"Rate" per Developed Dwelling Unit
"Rate" per Final Mapped Residential Lot
[6] Increases annually at minimum
allowed 3.50%.

V. Maximum Special Taxes
Developed Dwelling Units
Final Mapped Residential Lots
--------------------------------------------
Total Maximum Special Taxes
VI. Projected Special Taxes
Developed Dwelling Units
Final Mapped Residential Lots
--------------------------------------------
Total Projected Special Taxes
VII. Projected Special Tax Rate
"Rate" per Developed Dwelling Unit
"Rate" per Final Mapped Residential Lot
VIII. Developed Dwelling Units
Live Oak East
Live Oak West
--------------------------------------------
Total Developed Dwelling Units
IX. Final Mapped Residential Lots
Live Oak East
Live Oak West
--------------------------------------------
Total Final Mapped Residential Lots
2045-46 2046-47 2047-48 2048-49 2049-50 2050-51 2051-52 2052-53 $1,979 $2,049 $2,120 $2,195 $2,271 $2,351 $2,433 $2,518 $1,979 $2,049 $2,120 $2,195 $2,271 $2,351 $2,433 $2,518 $2,545,428 $2,634,518 $2,726,726 $2,822,161 $2,920,937 $3,023,170 $3,128,981 $3,238,495 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $2,545,428 $2,634,518 $2,726,726 $2,822,161 $2,920,937 $3,023,170 $3,128,981 $3,238,495 $2,516,577 $2,603,557 $2,693,570 $2,786,723 $2,883,125 $2,982,890 $3,086,135 $3,238,495 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $2,516,577 $2,603,557 $2,693,570 $2,786,723 $2,883,125 $2,982,890 $3,086,135 $3,238,495 $1,957 $2,025 $2,095 $2,167 $2,242 $2,320 $2,400 $2,518 $0 $0 $0 $0 $0 $0 $0 $0
567 567 567 567 567 567 567 567
719 719 719 719 719 719 719 719
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,286 1,286 1,286 1,286 1,286 1,286 1,286 1,286
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 0 0 0 0 0 0 0 0

Page 620 of 665 ends

CFD Cash Flow Draft - Unaudited Page 9

Annual Surplus/(Deficit)
III. Reserve Fund
Beginning Fund Balance
Budgeted Fund Replenishment
Use of Fund
--------------------------------------------
Projected Ending Fund Balance
Desired Reserve Fund Balance [5]
Desired Reserve Funded Percentage
[5] Equals to 50.00% of annual CFD
services costs.
2053-54 2054-55 2055-56 2056-57 2057-58 2058-59 2059-60 2060-61 $3,351,842 $3,469,157 $3,590,577 $3,716,247 $3,846,316 $3,980,937 $4,120,270 $4,264,479 $0 $0 $593,710 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $3,351,842 $3,469,157 $4,184,288 $3,716,247 $3,846,316 $3,980,937 $4,120,270 $4,264,479 $47,646 $48,123 $48,604 $49,090 $49,581 $50,077 $50,578 $51,083 $46,499 $48,127 $49,811 $51,554 $53,359 $55,226 $57,159 $59,160 $77,755 $80,476 $83,293 $86,208 $89,226 $92,348 $95,581 $98,926 $121,012 $125,247 $129,631 $134,168 $138,864 $143,724 $148,755 $153,961 $2,645,297 $2,737,882 $2,833,708 $2,932,888 $3,035,539 $3,141,783 $3,251,745 $3,365,556 $311,211 $322,104 $333,377 $345,046 $357,122 $369,622 $382,558 $395,948 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $705,863 $0 $0 $0 $0 $0
$102,422 $107,198 $0 $117,293 $122,625 $128,157 $133,894 $139,845 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $3,351,842 $3,469,157 $4,184,288 $3,716,247 $3,846,316 $3,980,937 $4,120,270 $4,264,479 $0 $0 $0 $0 $0 $0 $0 $0
$1,228,874 $1,331,296 $1,438,493 $844,783 $962,076 $1,084,701 $1,212,858 $1,346,752 $102,422 $107,198 $0 $117,293 $122,625 $128,157 $133,894 $139,845 $0 $0 ($593,710) $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $1,331,296 $1,438,493 $844,783 $962,076 $1,084,701 $1,212,858 $1,346,752 $1,486,597 $1,600,887 $1,656,918 $2,067,842 $1,774,932 $1,837,055 $1,901,352 $1,967,899 $2,036,775

83.16% 86.82% 40.85% 54.20% 59.05% 63.79% 68.44% 72.99%

Page 621 of 665 ends

CFD Cash Flow Draft - Unaudited Page 10

FISCAL YEAR
IV. Maximum Special Tax Rate [6]
"Rate" per Developed Dwelling Unit
"Rate" per Final Mapped Residential Lot
[6] Increases annually at minimum
allowed 3.50%.

V. Maximum Special Taxes
Developed Dwelling Units
Final Mapped Residential Lots
--------------------------------------------
Total Maximum Special Taxes
VI. Projected Special Taxes
Developed Dwelling Units
Final Mapped Residential Lots
--------------------------------------------
Total Projected Special Taxes
VII. Projected Special Tax Rate
"Rate" per Developed Dwelling Unit
"Rate" per Final Mapped Residential Lot
VIII. Developed Dwelling Units
Live Oak East
Live Oak West
--------------------------------------------
Total Developed Dwelling Units
IX. Final Mapped Residential Lots
Live Oak East
Live Oak West
--------------------------------------------
Total Final Mapped Residential Lots
2053-54 2054-55 2055-56 2056-57 2057-58 2058-59 2059-60 2060-61 $2,606 $2,698 $2,792 $2,890 $2,991 $3,096 $3,204 $3,316 $2,606 $2,698 $2,792 $2,890 $2,991 $3,096 $3,204 $3,316 $3,351,842 $3,469,157 $3,590,577 $3,716,247 $3,846,316 $3,980,937 $4,120,270 $4,264,479 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $3,351,842 $3,469,157 $3,590,577 $3,716,247 $3,846,316 $3,980,937 $4,120,270 $4,264,479 $3,351,842 $3,469,157 $3,590,577 $3,716,247 $3,846,316 $3,980,937 $4,120,270 $4,264,479 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $3,351,842 $3,469,157 $3,590,577 $3,716,247 $3,846,316 $3,980,937 $4,120,270 $4,264,479 $2,606 $2,698 $2,792 $2,890 $2,991 $3,096 $3,204 $3,316 $0 $0 $0 $0 $0 $0 $0 $0
567 567 567 567 567 567 567 567
719 719 719 719 719 719 719 719
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,286 1,286 1,286 1,286 1,286 1,286 1,286 1,286
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 0 0 0 0 0 0 0 0

Page 622 of 665 ends

CFD Cash Flow Draft - Unaudited Page 11

Annual Surplus/(Deficit)
III. Reserve Fund
Beginning Fund Balance
Budgeted Fund Replenishment
Use of Fund
--------------------------------------------
Projected Ending Fund Balance
Desired Reserve Fund Balance [5]
Desired Reserve Funded Percentage
[5] Equals to 50.00% of annual CFD
services costs.
2061-62 2062-63 2063-64 2064-65 2065-66 2066-67 2067-68 2068-69 $4,413,736 $4,568,217 $4,728,105 $4,893,588 $5,064,864 $5,242,134 $5,365,240 $5,510,102 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $4,413,736 $4,568,217 $4,728,105 $4,893,588 $5,064,864 $5,242,134 $5,365,240 $5,510,102 $51,594 $52,110 $52,631 $53,158 $53,689 $54,226 $54,768 $55,316 $61,230 $63,373 $65,592 $67,887 $70,263 $72,723 $75,268 $77,902 $102,388 $105,972 $109,681 $113,520 $117,493 $121,605 $125,861 $130,267 $159,350 $164,927 $170,699 $176,674 $182,857 $189,257 $195,881 $202,737 $3,483,351 $3,605,268 $3,731,452 $3,862,053 $3,997,225 $4,137,128 $4,281,927 $4,431,795 $409,806 $424,149 $438,994 $454,359 $470,262 $486,721 $503,756 $521,388 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$146,017 $152,417 $159,054 $165,937 $173,074 $180,474 $127,777 $90,697 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $4,413,736 $4,568,217 $4,728,105 $4,893,588 $5,064,864 $5,242,134 $5,365,240 $5,510,102 $0 $0 $0 $0 $0 $0 $0 $0
$1,486,597 $1,632,614 $1,785,031 $1,944,085 $2,110,022 $2,283,096 $2,463,570 $2,591,347 $146,017 $152,417 $159,054 $165,937 $173,074 $180,474 $127,777 $90,697 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $1,632,614 $1,785,031 $1,944,085 $2,110,022 $2,283,096 $2,463,570 $2,591,347 $2,682,044 $2,108,063 $2,181,845 $2,258,209 $2,337,247 $2,419,050 $2,503,717 $2,591,347 $2,682,044

77.45% 81.81% 86.09% 90.28% 94.38% 98.40% 100.00% 100.00%

Page 623 of 665 ends

CFD Cash Flow Draft - Unaudited Page 12

FISCAL YEAR
IV. Maximum Special Tax Rate [6]
"Rate" per Developed Dwelling Unit
"Rate" per Final Mapped Residential Lot
[6] Increases annually at minimum
allowed 3.50%.

V. Maximum Special Taxes
Developed Dwelling Units
Final Mapped Residential Lots
--------------------------------------------
Total Maximum Special Taxes
VI. Projected Special Taxes
Developed Dwelling Units
Final Mapped Residential Lots
--------------------------------------------
Total Projected Special Taxes
VII. Projected Special Tax Rate
"Rate" per Developed Dwelling Unit
"Rate" per Final Mapped Residential Lot
VIII. Developed Dwelling Units
Live Oak East
Live Oak West
--------------------------------------------
Total Developed Dwelling Units
IX. Final Mapped Residential Lots
Live Oak East
Live Oak West
--------------------------------------------
Total Final Mapped Residential Lots
2061-62 2062-63 2063-64 2064-65 2065-66 2066-67 2067-68 2068-69 $3,432 $3,552 $3,677 $3,805 $3,938 $4,076 $4,219 $4,367 $3,432 $3,552 $3,677 $3,805 $3,938 $4,076 $4,219 $4,367 $4,413,736 $4,568,217 $4,728,105 $4,893,588 $5,064,864 $5,242,134 $5,425,609 $5,615,505 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $4,413,736 $4,568,217 $4,728,105 $4,893,588 $5,064,864 $5,242,134 $5,425,609 $5,615,505 $4,413,736 $4,568,217 $4,728,105 $4,893,588 $5,064,864 $5,242,134 $5,365,240 $5,510,102 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $4,413,736 $4,568,217 $4,728,105 $4,893,588 $5,064,864 $5,242,134 $5,365,240 $5,510,102 $3,432 $3,552 $3,677 $3,805 $3,938 $4,076 $4,172 $4,285 $0 $0 $0 $0 $0 $0 $0 $0
567 567 567 567 567 567 567 567
719 719 719 719 719 719 719 719
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,286 1,286 1,286 1,286 1,286 1,286 1,286 1,286
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 0 0 0 0 0 0 0 0

Page 624 of 665 ends

CFD Cash Flow Draft - Unaudited Page 13

Annual Surplus/(Deficit)
III. Reserve Fund
Beginning Fund Balance
Budgeted Fund Replenishment
Use of Fund
--------------------------------------------
Projected Ending Fund Balance
Desired Reserve Fund Balance [5]
Desired Reserve Funded Percentage
[5] Equals to 50.00% of annual CFD
services costs.
2069-70 2070-71 2071-72 2072-73 2073-74 2074-75 2075-76 2076-77 $5,701,573 $5,899,731 $6,104,811 $6,317,054 $6,536,712 $6,764,044 $6,999,317 $7,242,811 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $5,701,573 $5,899,731 $6,104,811 $6,317,054 $6,536,712 $6,764,044 $6,999,317 $7,242,811 $55,869 $56,428 $56,992 $57,562 $58,138 $58,719 $59,306 $59,899 $80,629 $83,451 $86,372 $89,395 $92,523 $95,762 $99,113 $102,582 $134,826 $139,545 $144,429 $149,484 $154,716 $160,131 $165,735 $171,536 $209,833 $217,177 $224,778 $232,646 $240,788 $249,216 $257,938 $266,966 $4,586,908 $4,747,450 $4,913,610 $5,085,587 $5,263,582 $5,447,808 $5,638,481 $5,835,828 $539,636 $558,524 $578,072 $598,304 $619,245 $640,919 $663,351 $686,568 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$93,872 $97,157 $100,558 $104,077 $107,720 $111,490 $115,392 $119,431 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $5,701,573 $5,899,731 $6,104,811 $6,317,054 $6,536,712 $6,764,044 $6,999,317 $7,242,811 $0 $0 $0 $0 $0 $0 $0 $0
$2,682,044 $2,775,916 $2,873,073 $2,973,631 $3,077,708 $3,185,427 $3,296,917 $3,412,309 $93,872 $97,157 $100,558 $104,077 $107,720 $111,490 $115,392 $119,431 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $2,775,916 $2,873,073 $2,973,631 $3,077,708 $3,185,427 $3,296,917 $3,412,309 $3,531,740 $2,775,916 $2,873,073 $2,973,631 $3,077,708 $3,185,427 $3,296,917 $3,412,309 $3,531,740 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Page 625 of 665 ends

CFD Cash Flow Draft - Unaudited Page 14

FISCAL YEAR
IV. Maximum Special Tax Rate [6]
"Rate" per Developed Dwelling Unit
"Rate" per Final Mapped Residential Lot
[6] Increases annually at minimum
allowed 3.50%.

V. Maximum Special Taxes
Developed Dwelling Units
Final Mapped Residential Lots
--------------------------------------------
Total Maximum Special Taxes
VI. Projected Special Taxes
Developed Dwelling Units
Final Mapped Residential Lots
--------------------------------------------
Total Projected Special Taxes
VII. Projected Special Tax Rate
"Rate" per Developed Dwelling Unit
"Rate" per Final Mapped Residential Lot
VIII. Developed Dwelling Units
Live Oak East
Live Oak West
--------------------------------------------
Total Developed Dwelling Units
IX. Final Mapped Residential Lots
Live Oak East
Live Oak West
--------------------------------------------
Total Final Mapped Residential Lots
2069-70 2070-71 2071-72 2072-73 2073-74 2074-75 2075-76 2076-77 $4,519 $4,678 $4,841 $5,011 $5,186 $5,368 $5,556 $5,750 $4,519 $4,678 $4,841 $5,011 $5,186 $5,368 $5,556 $5,750 $5,812,048 $6,015,469 $6,226,011 $6,443,921 $6,669,458 $6,902,889 $7,144,491 $7,394,548 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $5,812,048 $6,015,469 $6,226,011 $6,443,921 $6,669,458 $6,902,889 $7,144,491 $7,394,548 $5,701,573 $5,899,731 $6,104,811 $6,317,054 $6,536,712 $6,764,044 $6,999,317 $7,242,811 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $5,701,573 $5,899,731 $6,104,811 $6,317,054 $6,536,712 $6,764,044 $6,999,317 $7,242,811 $4,434 $4,588 $4,747 $4,912 $5,083 $5,260 $5,443 $5,632 $0 $0 $0 $0 $0 $0 $0 $0
567 567 567 567 567 567 567 567
719 719 719 719 719 719 719 719
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,286 1,286 1,286 1,286 1,286 1,286 1,286 1,286
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 0 0 0 0 0 0 0 0

Page 626 of 665 ends

CFD Cash Flow Draft - Unaudited Page 15

Annual Surplus/(Deficit)
III. Reserve Fund
Beginning Fund Balance
Budgeted Fund Replenishment
Use of Fund
--------------------------------------------
Projected Ending Fund Balance
Desired Reserve Fund Balance [5]
Desired Reserve Funded Percentage
[5] Equals to 50.00% of annual CFD
services costs.
2077-78 2078-79 2079-80 2080-81 2081-82 2082-83 2083-84 2084-85 $7,653,357 $7,921,224 $8,198,467 $8,485,414 $8,782,403 $9,089,787 $9,407,930 $9,737,207 $899,232 $0 $0 $1,877,700 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $8,552,589 $7,921,224 $8,198,467 $10,363,113 $8,782,403 $9,089,787 $9,407,930 $9,737,207 $60,498 $61,103 $61,714 $62,332 $62,955 $63,584 $64,220 $64,862 $106,173 $109,889 $113,735 $117,716 $121,836 $126,100 $130,513 $135,081 $177,540 $183,754 $190,185 $196,842 $203,731 $210,862 $218,242 $225,880 $276,310 $285,981 $295,990 $306,350 $317,072 $328,170 $339,656 $351,544 $6,040,082 $6,251,484 $6,470,286 $6,696,746 $6,931,133 $7,173,722 $7,424,802 $7,684,671 $710,598 $735,469 $761,210 $787,853 $815,427 $843,967 $873,506 $904,079 $86,483 $0 $0 $198,419 $0 $0 $0 $0
$236,126 $0 $0 $328,730 $0 $0 $0 $0
$858,779 $0 $0 $1,668,127 $0 $0 $0 $0
$0 $293,544 $305,346 $0 $330,249 $343,382 $356,990 $371,090 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $8,552,589 $7,921,224 $8,198,467 $10,363,113 $8,782,403 $9,089,787 $9,407,930 $9,737,207 $0 $0 $0 $0 $0 $0 $0 $0
$3,531,740 $2,632,509 $2,926,053 $3,231,399 $1,353,699 $1,683,948 $2,027,330 $3,531,740 $0 $293,544 $305,346 $0 $330,249 $343,382 $356,990 $371,090 ($899,232) $0 $0 ($1,877,700) $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $2,632,509 $2,926,053 $3,231,399 $1,353,699 $1,683,948 $2,027,330 $2,384,320 $3,902,830 $4,246,045 $3,783,288 $3,915,704 $5,150,391 $4,194,600 $4,341,411 $4,493,360 $4,650,627

62.00% 77.34% 82.52% 26.28% 40.15% 46.70% 53.06% 83.92%

Page 627 of 665 ends

CFD Cash Flow Draft - Unaudited Page 16

FISCAL YEAR
IV. Maximum Special Tax Rate [6]
"Rate" per Developed Dwelling Unit
"Rate" per Final Mapped Residential Lot
[6] Increases annually at minimum
allowed 3.50%.

V. Maximum Special Taxes
Developed Dwelling Units
Final Mapped Residential Lots
--------------------------------------------
Total Maximum Special Taxes
VI. Projected Special Taxes
Developed Dwelling Units
Final Mapped Residential Lots
--------------------------------------------
Total Projected Special Taxes
VII. Projected Special Tax Rate
"Rate" per Developed Dwelling Unit
"Rate" per Final Mapped Residential Lot
VIII. Developed Dwelling Units
Live Oak East
Live Oak West
--------------------------------------------
Total Developed Dwelling Units
IX. Final Mapped Residential Lots
Live Oak East
Live Oak West
--------------------------------------------
Total Final Mapped Residential Lots
2077-78 2078-79 2079-80 2080-81 2081-82 2082-83 2083-84 2084-85 $5,951 $6,160 $6,375 $6,598 $6,829 $7,068 $7,316 $7,572 $5,951 $6,160 $6,375 $6,598 $6,829 $7,068 $7,316 $7,572 $7,653,357 $7,921,224 $8,198,467 $8,485,414 $8,782,403 $9,089,787 $9,407,930 $9,737,207 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $7,653,357 $7,921,224 $8,198,467 $8,485,414 $8,782,403 $9,089,787 $9,407,930 $9,737,207 $7,653,357 $7,921,224 $8,198,467 $8,485,414 $8,782,403 $9,089,787 $9,407,930 $9,737,207 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $7,653,357 $7,921,224 $8,198,467 $8,485,414 $8,782,403 $9,089,787 $9,407,930 $9,737,207 $5,951 $6,160 $6,375 $6,598 $6,829 $7,068 $7,316 $7,572 $0 $0 $0 $0 $0 $0 $0 $0
567 567 567 567 567 567 567 567
719 719 719 719 719 719 719 719
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,286 1,286 1,286 1,286 1,286 1,286 1,286 1,286
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 0 0 0 0 0 0 0 0

Page 628 of 665 ends

CFD Cash Flow Draft - Unaudited Page 17

Annual Surplus/(Deficit)
III. Reserve Fund
Beginning Fund Balance
Budgeted Fund Replenishment
Use of Fund
--------------------------------------------
Projected Ending Fund Balance
Desired Reserve Fund Balance [5]
Desired Reserve Funded Percentage
[5] Equals to 50.00% of annual CFD
services costs.
2085-86 2086-87 2087-88 2088-89 2089-90 2090-91 2091-92 $10,078,010 $10,430,740 $10,795,816 $11,173,669 $11,564,748 $11,969,514 $12,388,447 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ $10,078,010 $10,430,740 $10,795,816 $11,173,669 $11,564,748 $11,969,514 $12,388,447 $65,511 $66,166 $66,828 $67,496 $68,171 $68,853 $69,541 $139,809 $144,703 $149,767 $155,009 $160,434 $166,049 $171,861 $233,786 $241,969 $250,438 $259,203 $268,275 $277,665 $287,383 $363,848 $376,582 $389,763 $403,404 $417,524 $432,137 $447,262 $7,953,634 $8,232,011 $8,520,132 $8,818,336 $9,126,978 $9,446,422 $9,777,047 $935,722 $968,472 $1,002,369 $1,037,451 $1,073,762 $1,111,344 $1,150,241 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$385,700 $400,837 $416,520 $432,769 $449,604 $467,044 $485,112 ------------ ------------ ------------ ------------ ------------ ------------ ------------ $10,078,010 $10,430,740 $10,795,816 $11,173,669 $11,564,748 $11,969,514 $12,388,447 $0 $0 $0 $0 $0 $0 $0
$2,632,509 $2,926,053 $3,231,399 $1,353,699 $1,683,948 $2,027,330 $2,384,320 $385,700 $400,837 $416,520 $432,769 $449,604 $467,044 $485,112 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ $3,018,208 $3,326,890 $3,647,919 $1,786,468 $2,133,552 $2,494,374 $2,869,432 $4,813,399 $4,981,868 $5,156,234 $5,336,702 $5,523,487 $5,716,809 $5,916,897

62.70% 66.78% 70.75% 33.48% 38.63% 43.63% 48.50%

Page 629 of 665 ends

CFD Cash Flow Draft - Unaudited Page 18

FISCAL YEAR
IV. Maximum Special Tax Rate [6]
"Rate" per Developed Dwelling Unit
"Rate" per Final Mapped Residential Lot
[6] Increases annually at minimum
allowed 3.50%.

V. Maximum Special Taxes
Developed Dwelling Units
Final Mapped Residential Lots
--------------------------------------------
Total Maximum Special Taxes
VI. Projected Special Taxes
Developed Dwelling Units
Final Mapped Residential Lots
--------------------------------------------
Total Projected Special Taxes
VII. Projected Special Tax Rate
"Rate" per Developed Dwelling Unit
"Rate" per Final Mapped Residential Lot
VIII. Developed Dwelling Units
Live Oak East
Live Oak West
--------------------------------------------
Total Developed Dwelling Units
IX. Final Mapped Residential Lots
Live Oak East
Live Oak West
--------------------------------------------
Total Final Mapped Residential Lots
2085-86 2086-87 2087-88 2088-89 2089-90 2090-91 2091-92 $7,837 $8,111 $8,395 $8,689 $8,993 $9,308 $9,633
$7,837 $8,111 $8,395 $8,689 $8,993 $9,308 $9,633
$10,078,010 $10,430,740 $10,795,816 $11,173,669 $11,564,748 $11,969,514 $12,388,447 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ $10,078,010 $10,430,740 $10,795,816 $11,173,669 $11,564,748 $11,969,514 $12,388,447 $10,078,010 $10,430,740 $10,795,816 $11,173,669 $11,564,748 $11,969,514 $12,388,447 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ $10,078,010 $10,430,740 $10,795,816 $11,173,669 $11,564,748 $11,969,514 $12,388,447 $7,837 $8,111 $8,395 $8,689 $8,993 $9,308 $9,633
$0 $0 $0 $0 $0 $0 $0
567 567 567 567 567 567 567
719 719 719 719 719 719 719
------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,286 1,286 1,286 1,286 1,286 1,286 1,286
0 0 0 0 0 0 0
0 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------ 0 0 0 0 0 0 0

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CFD ABSORPTION SUMMARY

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CITY OF HANFORD

ABSORPTION SUMMARY
Table 1: Annual Final Map Recording (Residential Lots)
Year Ended Live Oak East Live Oak West
12/31/2021 100 0
12/31/2022 117 103
12/31/2023 117 103
12/31/2024 117 103
12/31/2025 116 103
12/31/2026 0 103
12/31/2027 0 103
12/31/2028 0 101
12/31/2029 0 0
12/31/2030 0 0
12/31/2031 0 0
12/31/2032 0 0
12/31/2033 0 0
12/31/2034 0 0
12/31/2035 0 0
12/31/2036 0 0
Grand Total 567 719
Table 2: Annual Building Permit Issuance
Year Ended Live Oak East Live Oak West
5/1/2022 56 0
5/1/2023 96 32
5/1/2024 96 96
5/1/2025 96 96
5/1/2026 96 96
5/1/2027 96 96
5/1/2028 31 96
5/1/2029 0 96
5/1/2030 0 96
5/1/2031 0 15
5/1/2032 0 0
5/1/2033 0 0
5/1/2034 0 0
5/1/2035 0 0
5/1/2036 0 0
5/1/2037 0 0
Grand Total 567 719

PROPOSED COMMUNITY FACILITIES DISTRICT
NO. 2022-01 (LIVE OAK)

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13.B.

AGENDA

STAFF REPORT

MEETING DATE: 7/18/2023 AGENDA SECTION: GENERAL BUSINESS

SUBJECT:

Approval of a Memorandum of Understanding (MOU) between the City of Hanford and Kings County, pertaining to the annexation of the remaining "substantially surrounded islands" within the City of Hanford.

RECOMMENDATION:

Recommendation: Authorize the City to enter into a Memorandum of Understanding with Kings County for the annexation of the remaining substantially surrounded islands.

Recommended Motion: I move to execute the MOU, as presented.

As part of the Reorganization project, underway by QK, the City has prepared a Memorandum of Understanding (MOU), agreeing that the City will annex the remaining five substantially surrounded islands (Island 9-13) from the Kings County jurisdiction within an 18-month period.

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The MOU agrees to a timeline and transition of services upon annexation. The substantially surrounded islands are subject to streamlined proceedings, in accordance with State Law.

ATTACHMENTS:

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1. Memorandum of Understanding

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Memorandum of Understanding
Annexation of Five Substantially Surrounded Islands within the City of Hanford This Memorandum of Understanding (“MOU”) by and between the County of Kings, a pollical subdivision of the State of California (the “County), and the City of Hanford, a municipal corporation (the “City”), (collectively the “Parties”), provides as follows:

WHEREAS, there are five (5) unincorporated territories substantially surrounded by the City (“County Islands”), that are more particularly described in the attached Exhibit A, shown as Island 9, 10, 11, 12, and 13, which is incorporated herein by reference; WHEREAS, the County must currently maintain and provide services to the County Islands; WHEREAS, the County’s provision of services to the County Islands creates operational inefficiencies, including, but not limited to, inefficiencies where the City and the County provide the same service to different portions of the same neighborhood within each jurisdiction and crisscrossing the other’s territory as it provides said services;
WHEREAS, confusion is generated among some residents as to which jurisdiction is responsible for addressing problems and concerns, or who they should approach to obtain assistance; WHEREAS, the City is willing to annex the County Islands to improve services and provide better responsiveness to residents about concerns within their affected neighborhoods; WHERAS, upon annexation of the County Islands, the County will allocate revenues to the City according to the Master Tax Sharing Agreement, as previously negotiated between the Parties; WHEREAS, the City and the County each have unique concerns about the financial implications of the City’s annexation of the County Islands, including the transfer of tax revenues and the cost of new service to be provided by the City;
WHEREAS, the City and the County have agreed to certain terms that will provide a vehicle for addressing a portion of the new costs that will be incurred by the City as a result of the annexation of the County Islands;
WHEREAS, this MOU will provide a clear path for the City to initiate and complete annexation of the County Islands; and
WHEREAS, the City and the County desire to memorialize these terms by executing an MOU.

NOW THEREFORE THE PARTIES MUTUALLY AGREE AS FOLLOWS:

1. The recitals set forth above are hereby incorporated into this MOU by reference.

2. The City will initiate the process to annex the County Islands upon execution of this MOU.

3. The City will utilize a good faith effort to complete the annexation of the County Islands within 18 months of MOU execution.

4. This MOU does not amend the agreement for automatic mutual aid for fire services executed by the City and the County, which was effective on December 22, 2015 (“Auto Aid Agreement”).

The terms of the Auto Aid Agreement shall remain in full force and effect, and it is the Parties’

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intent that the terms of that Auto Aid Agreement shall apply to the County Islands after their annexation by the City.

5. The County and the City are the only parties to this MOU and are the only parties entitle to enforce its terms. Nothing in this MOU bestows, is intended to bestow, or shall be construed to bestow any right or benefit, whether directly, indirectly, or otherwise, to any third persons.

6. If an action at law or in equity is necessary to enforce or interpret the terms of this MOU, the prevailing Party shall be entitled to reasonable attorney’s fees, costs and necessary disbursements in addition to any other reasonable relief to which it may be entitled.

7. Amendments to this MOU shall be effective only if they are in writing and signed by both Parties.

The undersigned representatives, by executing this MOU, covenant that they are authorized to execute this agreement on behalf of their respective public entities.

County of Kings City of Hanford
________________________ _________________________________ Travis Paden
Kings County Board of Supervisors City of Hanford Mayor APPROVED AS TO FORM: APPROVED AS TO FORM:
______________________________ _______________________________ County Counsel Ty Mizote, City Attorney

ATTEST ATTEST
____________________________________ _________________________________ Catherine Venturella Natalie Corral
Clerk to the Board of Supervisor City Clerk

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13.C.

AGENDA

STAFF REPORT

MEETING DATE: 7/18/2023 AGENDA SECTION: GENERAL BUSINESS

SUBJECT:

Approval of the Notice of Completion of the Police Activities League Parking Lot Expansion Project for a total final project cost of $491,945.31, and Authorization for the Mayor to execute and the City Clerk to file said Notice with the Kings County Recorder's Office.

RECOMMENDATION:

Recommendation:

That the City Council, by motion, approve the Notice of Completion for the Police Activities League Parking Lot Expansion Project for a total final project cost of $491,945.31, and Authorize the Mayor to execute and the City Clerk to file said Notice with the Kings County Recorder's Office.

BACKGROUND:

The Police Activities League Building is located at the corner of 11th and Rodgers Road in Hanford, Ca. This building was purchased by the City of Hanford and is home to the (PAL) Police Activities League as well as utilized as storage for vehicles for the Police Department. PAL provides community activities such as boxing and jujitsu for youth in the community.

The parking lot previously consisted of a dirt lot which did not provide enough parking stalls to accommodate the facility's activities or comply with the Americans with Disabilities Act (ADA). This project provided a new drive approach, chain link fence, block wall, new trash enclosure, paved parking lot and an increase in the number of stalls from 3 to 16, including ADA parking. In addition, a new concrete pad was installed to properly store the Police Department's SWAT vehicle.

During this project, unforeseen conditions arose which were not contemplated by the plans or specifications, and additional work became necessary. The unforeseen conditions required that direction be given to the contractor in an expeditious manner to avoid costly interruption and was necessary for management and control of the contracts. All change orders were negotiated to the lowest cost, prepared, and captured all additional work outside the original scope of the project. Reductions and/or additional costs resulting in a change of the scope were reviewed by City management and meet the public work standard specification for the City of Hanford.

There were eight (8) construction contract change orders on this project, with a net increase of $43,644.41.

1 Awarded add
alternative (block
wall) $5,325.00

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2 Property Clearance $5,405.85
3 Asphalt
replacement $4,107.00
4 Demo $1,575.00
5 Water Line Sleeve $875.00
6 BOQ – Asphalt $8,170.56
7 Additional AC –
Drive Approach $6,975.00
8 Concrete pad CO $11,211.00

There were problems with the paving on this project. Specifically, asphalt was not graded properly, resulting in poor drainage from the site. Pavement removal and replacement was contemplated, however, it was determined that this would be ineffective due to the grade outside of the project boundaries . Instead, wetwells were installed just outside of the paved areas and additional pavement was added to raise low spots. Areas that received this additional material were reheated and mixed thoroughly, leaving a durable finished product.

FISCAL IMPACT:

The Community Development Block Grant and the ACO Fund provided $450,267.60 for this project including contingencies. An appropriation transfer of $40,000 from the ACO Fund Veterans Building Roof Replacement project (#823602) was required to fully fund the construction of this project. A copy of the final project construction and finance history report is attached for Council review.

ATTACHMENTS:

1. NOC - Recording Original PDF

2. NOC - Recording Original WORD

3. FInal Project Financial History Report

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RECORDING REQUESTED BY:

CITY OF HANFORD

When recorded return to:

City Clerk
City of Hanford
315 North Douty Street
Hanford, California 93230-3951

G.C. 27361.3 - Fee NIL

NOTICE OF COMPLETION

TO WHOM IT MAY CONCERN:

YOU ARE HEREBY NOTIFIED AS FOLLOWS:

1. The work of Improvement is located: 896 N. 11th Ave. Hanford Ca 93230

2. The Improvement is particularly described as: Site Improvement & Pavement Resurfacing.

3. The date of completion of the work of Improvement: May 10, 2023

4. The Owner of the work of Improvement: City of Hanford.

5. The nature of the owner’s interest or estate: Fee Simple Title.

6. The name of the original contractor for the work of Improvement: Nick Champi Enterprises, Inc.

7. The surety for the work of Improvement: Philadelphia Indemnity Insurance Company

8. All work for this project has been completed.

9. Accepted by minute action of the City Council of the City of Hanford on: July 18, 2023

I certify under penalty of perjury that the foregoing is true and correct.

Dated this 18th day of July 2023

BY: ________________________________________
Travis Paden, Mayor
City of Hanford, County of Kings, State of California

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I, the undersigned, say:

I am the person who signed the foregoing notice . I have read the above notice and know its contents, and the facts stated therein are true of my own knowledge.

I declare under penalty of perjury that the foregoing is true and correct.

Executed at Hanford, California, this ____ day of ___________, 2023.

BY: ________________________________________
Travis Paden, Mayor
City of Hanford, County of Kings, State of California

Authority: Section 1181 Civil Code

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RECORDING REQUESTED BY:

CITY OF HANFORD
When recorded return to:

City Clerk
City of Hanford
315 North Douty Street
Hanford, California 93230-3951

G.C. 27361.3 - Fee NIL

NOTICE OF COMPLETION
TO WHOM IT MAY CONCERN:

YOU ARE HEREBY NOTIFIED AS FOLLOWS:

1. The work of Improvement is located: 896 N. 11 th Ave. Hanford Ca 93230

2. The Improvement is particularly described as: Site Improvement & Pavement Resurfacing.

3. The date of completion of the work of Improvement: May 10, 2023

4. The Owner of the work of Improvement: City of Hanford.

5. The nature of the owner’s interest or estate: Fee Simple Title.

6. The name of the original contractor for the work of Improvement: Nick Champi Enterprises, Inc.

7. The surety for the work of Improvement: Philadelphia Indemnity Insurance Company

8. All work for this project has been completed.

9. Accepted by minute action of the City Council of the City of Hanford on: July 18, 2023 I certify under penalty of perjury that the foregoing is true and correct.

Dated this 18th day of July 2023
BY: ________________________________________
Travis Paden, Mayor
City of Hanford, County of Kings, State of California

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I, the undersigned, say:

I am the person who signed the foregoing notice. I have read the above notice and know its contents, and the facts stated therein are true of my own knowledge.

I declare under penalty of perjury that the foregoing is true and correct.

Executed at Hanford, California, this ____ day of ___________, 2023.

BY: ________________________________________
Travis Paden, Mayor
City of Hanford, County of Kings, State of California
Authority: Section 1181 Civil Code

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FINAL PROJECT CONSTRUCTION AND FINANCE HISTORY

PROJECT: Police Parking Activities League Parking Lot Expansion Project CONTRACTOR: Nick Champi Enterprises, Inc.
615 N. 10th Ave.

Hanford CA 93230

CONTRACT DATES: Council Award July 19, 2022
Bid Opening June 14, 2022
Contractor Started Work October 3, 2022
Contract Time of Completion November 19, 2022
Contractor Completed Work May 10, 2023

CONSTRUCTION CONTRACT CHANGE ORDERS:

1 Awarded add alternative (block wall) $5,325.00
2 Property Clearance $5,405.85
3 Asphalt replacement $4,107.00
4 Demo $1,575.00
5 Water Line Sleeve $875.00
6 BOQ – Asphalt $8,170.56
7 Additional AC – Drive Approach $6,975.00
8 Concrete pad CO $11,211.00

FINANCIAL HISTORY:

REVENUE OF PROJECT FUNDING
Community Development Block Grant $239,000.00
ACO Fund $211,267.60
ACO (Additional Appropriations) $40,000.00

TOTAL BUDGET FUNDING $490,267.00

PROJECT EXPENDITURE:

Hanford Sentinel - Project Advertisement $1,340.67
Building Permit Fees $934.55
Nick Champi Construction Contract $468,175.41 Valley Security Alarm $3,195.00
QK (Construction Staking) $8,448.20
QK (Additional Topo) $2,009.50
QK (Pad Staking) $1,415.00
Kleinfelder (Materials Testing) $3,782.73
Zumwalt (Topo) $2,644.25

Total Construction Cost $491,945.31
Balance -$1,678.31

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13.D.

AGENDA

STAFF REPORT

MEETING DATE: 7/18/2023 AGENDA SECTION: GENERAL BUSINESS

SUBJECT:

Approval of the Notice of Completion for the Police Department Parking Lot Expansion Project for a final project cost of $593,749.19, and Authorization for the Mayor to execute and the City Clerk to file said Notice with the Kings County Recorder of Office.

RECOMMENDATION:

Recommendation:

That the City Council, by motion, approve the Notice of Completion for the Police Parking Lot Expansion Project for a final project cost of $593,749.19, and Authorize the Mayor to execute and the City Clerk to file said Notice with the Kings County Recorder's Office.

BACKGROUND:

As part of the 2021/22 Council Adopted Budget, Council approved an expansion to the secure parking area between the Hanford police department buildings. This project consisted of the reconfiguration and redesign of existing parking spaces located east of the Police Station to provide for additional and more efficient parking. This project also included fencing and gates to secure the area. Existing parking areas located east of the police station (east of alley) were inefficient and functioned poorly. The reconfiguration of parking in this area added additional parking stalls and allowed for more efficient use of the space.

The project was put out for bid and American Paving of Fresno supplied the low bid of $510,674.04.

Unforeseen conditions arose which were not contemplated by the plans or specifications, and additional work became necessary. The unforeseen conditions required that direction be given to the contractor in an expeditious manner to avoid costly interruption and was necessary for management and control of the contracts. All change orders were negotiated to the lowest cost, prepared, and captured all additional work outside the original scope of the project. Reductions and/or additional costs resulting in a change of the scope were reviewed by city management and meet the public work standard specification for the City of Hanford.

There were eight (8) contract change orders on this project, which resulted in a net increase of $83,075.15 to the original contract, with a final project cost of $593,749.19.

Contract change orders:

1 Additional Electric Gate $41,500
2 Demo Awning $3,900
3 Transite pipe $2,472.50

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4 Demo concrete footing $6,950
5 Transite pipe credit -$400

5.1 SPR Revisions $5,759.19

5.2 Electrical revisions $13,656.25
6 Roof drain modifications $2,950
7 Balance of Quanties -$13,712.79
8 Reverse LD's $20,000.00

After the paving was completed, initial testing revealed that the asphalt did not pass compaction testing. In other places, the asphalt was poorly mixed, resulting in exposed gravel and poor adhesion. After further testing using a second approved standard method, the compaction proved to meet design criteria. To address the exposed gravel locations, an infrared heater was used to heat the placed asphalt and additional material was incorporated into the mix. The application of the fog seal coat provided a uniform looking parking lot.

FISCAL IMPACT:

The Police Impact Fee Fund and the ARPA Fund have currently provided $564,336.69 for this project, including contingencies. An appropriation transfer of $39,000.00 from the ACO fund project Veterans Building Roof Replacement (#823602) was required to fully fund the construction of this project, resulting in a budget of $603,336.69. A copy of the final project construction and finance history report is attached for Council review.

ATTACHMENTS:

1. NOC - Recording Original WORD

2. Final Project Construction & Financial History Report REV1

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RECORDING REQUESTED BY:

CITY OF HANFORD
When recorded return to:

City Clerk
City of Hanford
315 North Douty Street
Hanford, California 93230-3951

G.C. 27361.3 - Fee NIL

NOTICE OF COMPLETION
TO WHOM IT MAY CONCERN:

YOU ARE HEREBY NOTIFIED AS FOLLOWS:

1. The work of Improvement is located: 425 N. Irwin St. Hanford Ca 93230

2. The Improvement is particularly described as: Pavement Resurfacing / Site Improvements

3. The date of completion of the work of Improvement: June 13, 2023

4. The Owner of the work of Improvement: City of Hanford.

5. The nature of the owner’s interest or estate: Fee Simple Title.

6. The name of the original contractor for the work of Improvement: American Paving Co.

7. The surety for the work of Improvement: Liberty Mutual Company

8. All work for this project has been completed.

9. Accepted by minute action of the City Council of the City of Hanford on: July 18, 2023 I certify under penalty of perjury that the foregoing is true and correct.

Dated this 18th day of July 2023
BY: ________________________________________
Travis Paden, Mayor
City of Hanford, County of Kings, State of California

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I, the undersigned, say:

I am the person who signed the foregoing notice. I have read the above notice and know its contents, and the facts stated therein are true of my own knowledge.

I declare under penalty of perjury that the foregoing is true and correct.

Executed at Hanford, California, this ____ day of ___________, 2023.

BY: ________________________________________
Travis Paden, Mayor
City of Hanford, County of Kings, State of California
Authority: Section 1181 Civil Code

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FINAL PROJECT CONSTRUCTION AND FINANCE HISTORY

PROJECT: Police Parking Lot Expansion Project
CONTRACTOR: American Paving
525 W. Alluvial Avenue
Fresno Ca 93711

CONTRACT DATES: Council Award August 02 , 2022
Bid Opening June 21, 2022
Contracto r Started Work September 26, 2022
Contract Time of Completion January 3, 2023
Contractor Comple ted Work June 13, 2023

CONTRACT CHANGE ORDERS:
1 Additional Electric
Gate $41,500.00
2 Demo Awning $3,900.00
3 Transite Pipe $2,472.50
4 Demo Concrete
Footing $6,950.00
5 Transit Pipe Credit -$400.00

5.1 SPR revisions $5,759.19

5.2 Electrical Revisions $13,656.25
6 Roof Drain
Modification $2,950.00
7 LD's & BOQ -$13,712.79
8 Reverse LD’s $20.000.00

FINANCIAL HISTORY:

REVENUE OF PROJECT FUNDING (Munis)
Police Impact Fee Fund $414,336.69
ARPR Fund $150,000.00
ACO (Additional Appropriations) $39,000.00

TOTAL BUDGET FUNDING $603,336.69

PROJECT EXPENDITURE:

Hanford Sentinel - Project Advertisement
Building Permit Fees
American Paving Construction Contract
Valley Security Alarm
Champi Fence (Evidence Locker)
McClard Masonry (Wall Repair)
QK (Construction Staking)
Kleinfelder (Materials Testing)

Total Construction Cos t $593,749.19
Balance (Credit) - $9,587.50

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Council Future Agenda Items
Originated
Date Item Originator Staff Lead Date Estimate
12/20/2022 Presentation to City Council regarding
Youth Sports Activities and related
field usage and level of services
provided after the formation of the
Field Sports Advisory Committee
Council
Consensus
Brad Albert 9/19/2023
3/21/2023 Discussion regarding the feasibility of
implementing a permitting system to
allow for portable basketball hoops
within the City’s Right of Way
Council
Consensus
Various Staff 8/1/2023
5/16/2023 Review and Discussion of the Council
Handbook of Rules and Procedures
Council
Consensus
City Manager 8/1/2023

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Hanford City CouncilJuly 18, 2023

Hanford City Council
July 18, 2023