Agenda packet — Lancaster City Council, August 26, 2025 (part 3 of 3)

RESOLUTION NO. 25-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LANCASTER, AMENDING RESOLUTION 25-33

ESTABLISHING TERMS AND CONDITIONS OF

EMPLOYMENT AND A COMPENSATION SCHEDULE FOR

REPRESENTED AND NON-REPRESENTED REGULAR AND

PROBATIONARY EMPLOYEES OF THE CITY
WHEREAS, the City Council is desirous of amending the Classification and Compensation Schedule for Represented and Non-Represented Full Time Employees;

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LANCASTER DOES HEREBY RESOLVE, DETERMINE AND FIND AS FOLLOWS;
Section 1. The 2000 series employee group and the following classifications are established in the Compensation Schedule effective August 24, 2025 as follows:

Classification Step I Step 2 Step 3 Step 4 Step 5 Step 6 Director H - $94.35
M - $16,354.24
H - $99.07
M - $17,171.96
H - $104.02
M - $18,030.57
H - $109.22
M - $18,932.10
H - $114.68
M - $19,878.71
H - $120.42
M - $20,872.65
Senior Director H - $103.79
M - $17,989.68
H - $108.98
M - $18,889.17
H - $114.42
M - $19,833.62
H - $120.15
M - $20,825.33
H - $126.15
M - $21,866.59
H - $132.46
M - $22,959.93
Assistant City
Manager
H - $115.06
M - $19,944.21
H - $120.82
M - $20,941.42
H - $126.86
M - $21,988.46
H - $133.20
M - $23,087.89
H - $139.86
M - $24,242.29
H - $146.85
M - $25,454.41
Section 2. The 2100 series employee group and the following classifications are established in the Compensation Schedule effective August 24, 2025 as follows:

Classification Step I Step 2 Step 3 Step 4 Step 5 Step 6 Assistant Chief
of Police
H - $75.48
M - $13,083.42
H - $79.26
M - $13,737.60
H - $83.22
M - $14,424.45
H - $87.38
M - $15,145.67
H - $91.75
M - $15,902.94
H - $96.34
M - $16,698.11
Chief of Police H - $94.35
M - $16,354.24
H - $99.07
M - $17,171.96
H - $104.02
M - $18,030.57
H - $109.22
M - $18,932.10
H - $114.68
M - $19,878.71
H - $120.42
M - $20,872.65
Section 3. The 2200 series employee group and the following classifications are established in the Compensation Schedule effective August 24, 2025 as follows:

Classification Rate
Director of
AVAQMD
H - $114.68
M - $19,878.71
City Manager H - $161.72
M - $28,031.25
Resolution No. 25-XX

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Section 4. The 3000 series employee group and the following Tier 1 (employees hired in the following positions on or before June 30, 2019) classifications are established in the Compensation Schedule effective August 24, 2025 as follows:

Classification Step I Step 2 Step 3 Step 4 Step 5 Step 6 Planner H - $47.48
M - $8,229.98
H - $49.85
M - $8,641.47
H - $52.35
M - $9,073.52
H - $54.96
M - $9,527.20
H - $57.71
M - $10,003.57
H - $60.60
M - $10,503.74
Analyst H - $47.48
M - $8,229.98
H - $49.85
M - $8,641.47
H - $52.35
M - $9,073.52
H - $54.96
M - $9,527.20
H - $57.71
M - $10,003.57
H - $60.60
M - $10,503.74
Engineer H - $56.61
M - $9,812.55
H - $59.44
M - $10,303.17
H - $62.41
M - $10,818.34
H - $65.53
M - $11,359.23
H - $68.81
M - $11,927.18
H - $72.25
M - $12,523.55
Senior Planner H - $57.85
M - $10,027.55
H - $60.74
M - $10,528.94
H - $63.78
M - $11,055.40
H - $66.97
M - $11,608.18
H - $70.32
M - $12,188.58
H - $73.83
M - $12,797.98
Section 5. The 3000 series employee group and the following Tier 2 classifications are established in the Compensation Schedule effective August 24, 2025 as follows:

Classification Step I Step 2 Step 3 Step 4 Step 5 Step 6 Senior Planner H - $56.61
M - $9,812.55
H - $59.44
M - $10,303.17
H - $62.41
M - $10,818.34
H - $65.53
M - $11,359.23
H - $68.81
M - $11,927.18
H - $72.25
M - $12,523.55
Manager H - $61.33
M - $10,630.30
H - $64.40
M - $11,161.80
H - $67.61
M - $11,719.89
H - $71.00
M - $12,305.87
H - $74.55
M - $12,921.18
H - $78.27
M - $13,567.23
Chief Building
Official
H - $66.05
M - $11,447.95
H - $69.35
M - $12,020.34
H - $72.82
M - $12,621.40
H - $76.46
M - $13,252.44
H - $80.28
M - $13,915.07
H - $84.29
M - $14,610.81
Senior Engineer H - $66.05
M - $11,447.95
H - $69.35
M - $12,020.34
H - $72.82
M - $12,621.40
H - $76.46
M - $13,252.44
H - $80.28
M - $13,915.07
H - $84.29
M - $14,610.81
City Clerk H - $75.48
M - $13,083.42
H - $79.26
M - $13,737.60
H - $83.22
M - $14,424.45
H - $87.38
M - $15,145.67
H - $91.75
M - $15,902.94
H - $96.34
M - $16,698.11
Assistant City
Attorney
H - $75.48
M - $13,083.42
H - $79.26
M - $13,737.60
H - $83.22
M - $14,424.45
H - $87.38
M - $15,145.67
H - $91.75
M - $15,902.94
H - $96.34
M - $16,698.11
Assistant
Director
H - $75.48
M - $13,083.42
H - $79.26
M - $13,737.60
H - $83.22
M - $14,424.45
H - $87.38
M - $15,145.67
H - $91.75
M - $15,902.94
H - $96.34
M - $16,698.11
Section 6. The 4000 series employee group and the following Tier 1 (employees hired in the following positions on or before June 30, 2019) classifications are established in the Compensation Schedule effective August 24, 2025 as follows:

Classification Step I Step 2 Step 3 Step 4 Step 5 Step 6 Administrative
Assistant
H - $37.74
M - $6,541.69
H - $39.63
M - $6,868.79
H - $41.61
M - $7,212.23
H - $43.69
M - $7,572.85
H - $45.87
M - $7,951.49
H - $48.17
M - $8,349.03
Resolution No. 25-XX

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Section 7. The 4000 series employee group and the following Tier 2 classifications are established in the Compensation Schedule effective August 24, 2025 as follows:

Classification Step I Step 2 Step 3 Step 4 Step 5 Step 6 Specialist I H - $33.33
M - $5,777.20
H - $35.00
M - $6,066.06
H - $36.75
M - $6,369.37
H - $38.58
M - $6,687.85
H - $40.51
M - $7,022.25
H - $42.54
M - $7,373.36
Administrative
Assistant
H - $33.33
M - $5,777.20
H - $35.00
M - $6,066.06
H - $36.75
M - $6,369.37
H - $38.58
M - $6,687.85
H - $40.51
M - $7,022.25
H - $42.54
M - $7,373.36
Coordinator I H - $37.74
M - $6,541.69
H - $39.63
M - $6,868.79
H - $41.61
M - $7,212.23
H - $43.69
M - $7,572.85
H - $45.87
M - $7,951.49
H - $48.17
M - $8,349.03
Specialist II H - $37.74
M - $6,541.69
H - $39.63
M - $6,868.79
H - $41.61
M - $7,212.23
H - $43.69
M - $7,572.85
H - $45.87
M - $7,951.49
H - $48.17
M - $8,349.03
Accountant H - $42.46
M - $7,359.43
H - $44.58
M - $7,727.40
H - $46.81
M - $8,113.78
H - $49.15
M - $8,519.46
H - $51.61
M - $8,945.43
H - $54.19
M - $9,392.72
Assistant City
Clerk
H - $42.46
M - $7,359.43
H - $44.58
M - $7,727.40
H - $46.81
M - $8,113.78
H - $49.15
M - $8,519.46
H - $51.61
M - $8,945.43
H - $54.19
M - $9,392.72
Coordinator II H - $42.46
M - $7,359.43
H - $44.58
M - $7,727.40
H - $46.81
M - $8,113.78
H - $49.15
M - $8,519.46
H - $51.61
M - $8,945.43
H - $54.19
M - $9,392.72
Engineering
Technician
H - $42.46
M - $7,359.43
H - $44.58
M - $7,727.40
H - $46.81
M - $8,113.78
H - $49.15
M - $8,519.46
H - $51.61
M - $8,945.43
H - $54.19
M - $9,392.72
Specialist II H - $39.30
M - $6,812.85
H - $41.27
M - $7,153.49
H - $43.33
M - $7,511.16
H - $45.50
M - $7,886.71
H - $47.78
M - $8,281.07
H - $50.16
M - $8,695.12
Accountant H - $42.46
M - $7,359.43
H - $44.58
M - $7,727.40
H - $46.81
M - $8,113.78
H - $49.15
M - $8,519.46
H - $51.61
M - $8,945.43
H - $54.19
M - $9,392.72
Inspector H - $42.46
M - $7,359.43
H - $44.58
M - $7,727.40
H - $46.81
M - $8,113.78
H - $49.15
M - $8,519.46
H - $51.61
M - $8,945.43
H - $54.19
M - $9,392.72
Senior Specialist H - $42.46
M - $7,359.43
H - $44.58
M - $7,727.40
H - $46.81
M - $8,113.78
H - $49.15
M - $8,519.46
H - $51.61
M - $8,945.43
H - $54.19
M - $9,392.72
IT Analyst I H - $47.18
M - $8,177.15
H - $49.53
M - $8,586.02
H - $52.01
M - $9,015.31
H - $54.61
M - $9,466.08
H - $57.34
M - $9,939.37
H - $60.21
M - $10,436.34
Senior
Engineering
Technician
H - $49.16
M - $8,521.13
H - $51.62
M - $8,947.19
H - $54.20
M - $9,394.54
H - $56.91
M - $9,864.25
H - $59.75
M -$10,357.45
H - $62.74
M - $10,875.32
Senior Inspector H - $49.16
M - $8,521.13
H - $51.62
M - $8,947.19
H - $54.20
M - $9,394.54
H - $56.91
M - $9,864.25
H - $59.75
M -$10,357.45
H - $62.74
M - $10,875.32
Coordinator III H - $50.39
M - $8,734.14
H - $52.91
M - $9,170.85
H - $55.55
M - $9,629.40
H - $58.33
M - $10,110.88
H – $61.25
M - $10,616.41
H - $64.31
M - $11,147.26
IT Analyst II H - $51.89
M - $8,994.83
H - $54.49
M - $9,444.57
H - $57.21
M - $9,916.81
H - $60.07
M - $10,412.63
H - $63.08
M - $10,933.28
H - $66.23
M - $11,479.95
Resolution No. 25-XX

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Inspector H - $42.46
M - $7,359.43
H - $44.58
M - $7,727.40
H - $46.81
M - $8,113.78
H - $49.15
M - $8,519.46
H - $51.61
M - $8,945.43
H - $54.19
M - $9,392.72
Purchasing Agent H - $42.46
M - $7,359.43
H - $44.58
M - $7,727.40
H - $46.81
M - $8,113.78
H - $49.15
M - $8,519.46
H - $51.61
M - $8,945.43
H - $54.19
M - $9,392.72
Senior Specialist H - $42.46
M - $7,359.43
H - $44.58
M - $7,727.40
H - $46.81
M - $8,113.78
H - $49.15
M - $8,519.46
H - $51.61
M - $8,945.43
H - $54.19
M - $9,392.72
Analyst H - $47.18
M - $8,177.15
H - $49.53
M - $8,586.02
H - $52.01
M - $9,015.31
H - $54.61
M - $9,466.08
H - $57.34
M - $9,939.37
H - $60.21
M - $10,436.34
Coordinator III H - $47.18
M - $8,177.15
H - $49.53
M - $8,586.02
H - $52.01
M - $9,015.31
H - $54.61
M - $9,466.08
H - $57.34
M - $9,939.37
H - $60.21
M - $10,436.34
IT Analyst I H - $47.18
M - $8,177.15
H - $49.53
M - $8,586.02
H - $52.01
M - $9,015.31
H - $54.61
M - $9,466.08
H - $57.34
M - $9,939.37
H - $60.21
M - $10,436.34
Planner H - $47.18
M - $8,177.15
H - $49.53
M - $8,586.02
H - $52.01
M - $9,015.31
H - $54.61
M - $9,466.08
H - $57.34
M - $9,939.37
H - $60.21
M - $10,436.34
Senior Engineering
Technician
H - $47.18
M - $8,177.15
H - $49.53
M - $8,586.02
H - $52.01
M - $9,015.31
H - $54.61
M - $9,466.08
H - $57.34
M - $9,939.37
H - $60.21
M - $10,436.34
Senior Inspector H - $47.18
M - $8,177.15
H - $49.53
M - $8,586.02
H - $52.01
M - $9,015.31
H - $54.61
M - $9,466.08
H - $57.34
M - $9,939.37
H - $60.21
M - $10,436.34
Supervisor H - $47.18
M - $8,177.15
H - $49.53
M - $8,586.02
H - $52.01
M - $9,015.31
H - $54.61
M - $9,466.08
H - $57.34
M - $9,939.37
H - $60.21
M - $10,436.34
Assistant Manager H - $51.89
M - $8,994.83
H - $54.49
M - $9,444.57
H - $57.21
M - $9,916.81
H - $60.07
M - $10,412.63
H - $63.08
M - $10,933.28
H - $66.23
M - $11,479.95
IT Analyst II H - $51.89
M - $8,994.83
H - $54.49
M - $9,444.57
H - $57.21
M - $9,916.81
H - $60.07
M - $10,412.63
H - $63.08
M - $10,933.28
H - $66.23
M - $11,479.95
Senior Analyst H - $51.89
M - $8,994.83
H - $54.49
M - $9,444.57
H - $57.21
M - $9,916.81
H - $60.07
M - $10,412.63
H - $63.08
M - $10,933.28
H - $66.23
M - $11,479.95
Senior
Coordinator
H - $51.89
M - $8,994.83
H - $54.49
M - $9,444.57
H - $57.21
M - $9,916.81
H - $60.07
M - $10,412.63
H - $63.08
M - $10,933.28
H - $66.23
M - $11,479.95
Senior IT
Analyst
H - $56.61
M - $9,812.55
H - $59.44
M - $10,303.17
H - $62.41
M - $10,818.34
H - $65.53
M - $11,359.23
H - $68.81
M - $11,927.18
H - $72.25
M - $12,523.55
Engineer H - $56.61
M - $9,812.55
H - $59.44
M - $10,303.17
H - $62.41
M - $10,818.34
H - $65.53
M - $11,359.23
H - $68.81
M - $11,927.18
H - $72.25
M - $12,523.55
Section 8. The 5000 series employee group and the following Tier 1 (employees hired in the following positions on or before June 30, 2019) classifications are established in the Compensation Schedule effective August 24, 2025 as follows:

Classification Step I Step 2 Step 3 Step 4 Step 5 Step 6 Technician II H - $35.60
M - $6,170.67
H - $37.39
M - $6,480.93
H - $39.25
M - $6,803.33
H - $41.21
M - $7,143.07
H - $43.27
M - $7,500.13
H - $45.44
M - $7,876.27
Resolution No. 25-XX

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Section 9. The 5000 series employee group and the following Tier 2 classifications are established in the Compensation Schedule effective August 24, 2025 as follows:

Classification Step I Step 2 Step 3 Step 4 Step 5 Step 6 Technician I H - $28.30
M - $4,905.33
H - $29.71
M - $5,149.73
H - $31.21
M - $5,409.73
H - $32.76
M - $5,678.40
H - $34.41
M - $5,964.40
H - $36.13
M - $6,262.53
Technician II H - $33.02
M - $5,723.47
H - $34.67
M - $6,009.47
H - $36.41
M - $6,311.07
H - $38.22
M - $6,624.80
H - $40.13
M - $6,955.87
H - $42.14
M - $7,304.27
Dispatcher H - $33.02
M - $5,723.47
H - $34.67
M - $6,009.47
H - $36.41
M - $6,311.07
H - $38.22
M - $6,624.80
H - $40.13
M - $6,955.87
H - $42.14
M - $7,304.27
· Section 10. The 5100 series employee group and the following classifications are established in the Compensation Schedule effective August 24, 2025 as follows:

Classification Step I Step 2 Step 3 Step 4 Step 5 Step 6 Police Officer H - $51.89
M - $8,994.27
H - $54.49
M - $9,444.93
H - $57.22
M - $9,918.13
H - $60.07
M - $10,412.13
H - $63.07
M - $10,932.13
H - $66.23
M - $11,479.87
Sergeant H - $61.33
M - $10,630.53
H - $64.40
M - $11,162.67
H - $67.62
M - $11,720.80
H - $70.99
M - $12,304.93
H - $74.55
M - $12,922.00
H - $78.28
M - $13,568.53
Section 11. The 6000 series employee group and the following classifications are established in the Compensation Schedule effective August 24, 2025 as follows:

Classification Step I Step 2 Step 3 Step 4 Step 5 Step 6 Fleet Technician H - $26.48
M - $4,589.87
H - $27.81
M - $4,820.40
H - $29.20
M - $5,061.33
H - $30.65
M - $5,312.67
H - $32.19
M - $5,579.60
H - $33.79
M - $5,856.93
Maintenance
Worker I
H - $26.48
M - $4,589.87
H - $27.81
M - $4,820.40
H - $29.20
M - $5,061.33
H - $30.65
M - $5,312.67
H - $32.19
M - $5,579.60
H - $33.79
M - $5,856.93
Utility
Maintenance
Worker I
H - $27.83
M - $4,823.87
H - $29.22
M - $5,064.80
H - $30.67
M - $5,316.13
H - $32.21
M - $5,583.07
H - $33.81
M - $5,860.40
H - $35.51
M - $6,155.07
Maintenance
Worker II
H - $29.28
M - $5,075.20
H - $30.73
M - $5,326.53
H - $32.28
M - $5,595.20
H - $33.89
M - $5,874.27
H - $35.58
M - $6,167.20
H - $37.36
M - $6,475.73
Senior
Custodian
H - $30.00
M - $5,200.00
H - $31.50
M - $5,460.00
H - $33.07
M - $5,732.13
H - $34.72
M - $6,018.13
H - $36.46
M - $6,319.73
H - $38.29
M - $6,636.93
Utility
Maintenance
Worker II
H - $30.75
M - $5,330.00
H - $32.30
M - $5,598.67
H - $33.91
M - $5,877.73
H - $35.60
M - $6,170.67
H - $37.39
M - $6,480.93
H - $39.25
M - $6,803.33
Light Equipment
Mechanic
H - $30.75
M - $5,330.00
H - $32.30
M - $5,598.67
H - $33.91
M - $5,877.73
H - $35.60
M - $6,170.67
H - $37.39
M - $6,480.93
H - $39.25
M - $6,803.33
Heavy Equipment
Operator
H - $30.75
M - $5,330.00
H - $32.30
M - $5,598.67
H - $33.91
M - $5,877.73
H - $35.60
M - $6,170.67
H - $37.39
M - $6,480.93
H - $39.25
M - $6,803.33
Resolution No. 25-XX

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Facilities
Maintenance
Worker
H - $30.75
M - $5,330.00
H - $32.30
M - $5,598.67
H - $33.91
M - $5,877.73
H - $35.60
M - $6,170.67
H - $37.39
M - $6,480.93
H - $39.25
M - $6,803.33
Lead Maintenance
Worker
H - $33.12
M - $5,740.80
H - $34.77
M - $6,026.80
H - $36.51
M - $6,328.40
H - $38.34
M - $6,645.60
H - $40.25
M - $6,976.67
H - $42.26
M - $7,325.07
Lead Heavy
Equipment
Operator
H - $33.12
M - $5,740.80
H - $34.77
M - $6,026.80
H - $36.51
M - $6,328.40
H - $38.34
M - $6,645.60
H - $40.25
M - $6,976.67
H - $42.26
M - $7,325.07
Lead Utility
Maintenance
Worker
H - $34.74
M - $6,021.60
H - $36.48
M - $6,323.20
H - $38.31
M - $6,640.40
H - $40.22
M - $6,971.47
H - $42.23
M - $7,319.87
H - $44.34
M - $7,685.60
Heavy
Equipment
Mechanic
H - $34.74
M - $6,021.60
H - $36.48
M - $6,323.20
H - $38.31
M - $6,640.40
H - $40.22
M - $6,971.47
H - $42.23
M - $7,319.87
H - $44.34
M - $7,685.60
Traffic Signal
Technician
H - $36.55
M - $6,335.33
H - $38.38
M - $6,652.53
H - $40.30
M - $6,985.33
H - $42.31
M - $7,333.73
H - $44.43
M - $7,701.20
H - $46.65
M - $8,086.00
Lead Mechanic H - $38.36
M - $6,649.07
H - $40.27
M - $6,980.13
H - $42.28
M - $7,328.53
H - $44.40
M - $7,696.00
H - $46.62
M - $8,080.80
H - $48.94
M - $8,482.93
Traffic Signal
Electrician
H - $49.15
M - $8,519.33
H - $51.61
M - $8,945.73
H - $54.19
M - $9,392.93
H - $56.90
M - $9,862.67
H - $59.75
M -$10,356.67
H - $62.74
M - $10,874.93
Section 12. Addition to the 8000 series employee group: the following classification for the 8000 Series employee group will be established effective August 24, 2025 as follows: Senior Production Assistant.

Section 13. The 8000 series employee group classifications are established in the Temporary Hourly Compensation Schedule effective August 24, 2025 as follows:

Classification
Step 1 Step 2 Step 3 Step 4
Recreation Program Leader $18.31 $19.23 $20.19 $21.20
Senior Recreation Program Leader $22.26 $23.37 $24.54 $25.77 Youth Program Leader $18.31 $19.23 $20.19 $21.20
Senior Youth Program Leader $22.26 $23.37 $24.54 $25.77 Art Program Leader $18.31 $19.23 $20.19 $21.20
Senior Art Program Leader $22.26 $23.37 $24.54 $25.77
Special Events Assistant $18.31 $19.23 $20.19 $21.20
Stage Assistant $18.31 $19.23 $20.19 $21.20
Senior Stage Assistant $22.26 $23.37 $24.54 $25.77
Maintenance Assistant $18.31 $19.23 $20.19 $21.20
Senior Maintenance Assistant $22.26 $23.37 $24.54 $25.77 Facilities Assistant $18.31 $19.23 $20.19 $21.20
Senior Facilities Assistant $22.26 $23.37 $24.54 $25.77 Ranger $18.31 $19.23 $20.19 $21.20
Senior Ranger $22.26 $23.37 $24.54 $25.77
Office Assistant $22.26 $23.37 $24.54 $25.77
Senior Office Assistant $27.06 $28.41 $29.83 $31.32
Resolution No. 25-XX

Page 7 ends

Media Assistant $22.26 $23.37 $24.54 $25.77
Senior Media Assistant $27.06 $28.41 $29.83 $31.32
Technical Assistant $22.26 $23.37 $24.54 $25.77
Senior Technical Assistant $27.06 $28.41 $29.83 $31.32
Security Assistant $22.26 $23.37 $24.54 $25.77
Security Officer $27.06 $28.41 $29.83 $31.32
Senior Security Officer $32.89 $34.53 $36.26 $38.07
Lifeguard I $21.20
Lifeguard II $24.38
Sr. Lifeguard $26.82
Senior Aquatic Program Leader $30.83
Undergraduate Intern $27.06
Graduate Intern $31.33
Homeless and Community Safety Liaison $27.47 - $53.79 Senior Production Assistant $32.05 - $54.94 Project Assistant $32.05 - $54.94
Section 14. Addition of Full-Time Equivalent (FTE) Position to the 2025-2026 fiscal year.

One (1) FTE positions added to the Community Development Department, increase the City of Lancaster’s total FTE count from 336 to 337.

Section 15. Continuation of Other Benefits. All other existing benefits for 8000 series, 6000 series, 5100 series, 5000 series, 4000 series, 3000 series, 2200 series, 2100 series, and 2000 series employees not conflicting with the above changes shall remain in effect until changed by the City through appropriate City Council action.

Section 16. Any Resolutions in conflict with provisions stated herein shall be considered superseded by the provisions contained within this Resolution.

STAFF REPORT
City of Lancaster
CC 10
8/26/2025
TN
Date: August 26, 2025
To: Mayor Parris and City Council Members
From: Patti Garibay, Director - Community Development

Subject: Approval of the Water Rights Transfer Agreement and Water Rights Transfer Option Agreement with Tivoli Investments, LLC.

Recommendations:

1. Approve the Water Rights Transfer Agreement between the City of Lancaster and Tivoli Investments, LLC. (Tivoli Investments) for the purchase of 500-Acre Feet of Permanent Water Rights.

2. Approve the Water Rights Transfer Option Agreement between the City of Lancaster and Tivoli Investments, LLC. for the Option to Purchase an Additional 500-Acre Feet of Permanent Water Rights.

3. Authorize the City Manager, or his designees, to execute all documents and make any non- substantive changes necessary to complete the transaction.

G.C. Section 84308: No
Fiscal Impact:
$5,000,000 is available in City account 10119000.8300 for the one-time payment for 500-acre feet of permanent water rights. $262,500 is available in City account 10119000.5809 to cover the first- year payment for the option to purchase an additional 500-acre feet of permanent water.

Subsequent payments for the option to purchase agreement will be covered through City 10119000.8300.

Background:

Development in Lancaster continues to grow steadily, with several large industrial developments on the west side of town, and significant hydrogen-producing projects on the east side, including 2 1
7 4
the landmark Element project under development. Staff is also working on a Westside Annexation, which will add seven square miles to the City’s boundaries. The Annexation project will add additional opportunities for industrial and commercial development in the City.

The City has an opportunity to purchase 500 acre-feet of permanent water rights from Tivoli Investments, along with an option to acquire an additional 500-acre-feet, to help support current and future development projects within the City.

A fair market analysis conducted by Merriman Hurst & Associates, Inc. (Merriman), a reputable water appraiser with expertise in the Antelope Valley’s water basins, determined that $10,000 per acre-foot represents a reasonable value for the permanent water rights offered by Tivoli Investments. Merriman also concluded that a fair market lease rate for a temporary transfer of all or part of the additional 500 acre-feet is $509 per acre-foot annually, based on recent comparable market data.

With Council approval, staff will work with Tivoli Investments to submit the water transfer application for 500-acre feet of permanent water rights and get approval for the transaction through the Antelope Valley Water Master.

The proposed acquisition of permanent and optional water rights from Tivoli Investments represents a strategic investment in Lancaster’s short-term water security and development capacity. Securing these rights will ensure the City is well-positioned to support ongoing and future growth, particularly as demand increases across residential, industrial, and renewable energy sectors.

PG/gb
Attachments:

Water Rights Transfer Agreement
Option Agreement
Merriman Water Appraisal
AV Watermaster Transfer Request Form

Page 1 of 10 ends

WATER RIGHTS TRANSFER AGREEMENT
This Water Rights Transfer Agreement (the “Agreement”) dated as of August 26, 2025 (the “Date of Agreement”), is entered into by and between TIVOLI INVESTMENTS, LLC, a California limited liability company (“Owner”), and the CITY OF LANCASTER, a municipal corporation and charter city (“Buyer”). Owner and Buyer are individually referred to herein as a “Party” and collectively referred to herein as “Parties.”

RECITALS
This Agreement is made with respect to the following facts:

A. As a matter of history, after years of litigation related to the groundwater rights in the Antelope Valley areas of Los Angeles and Kern Counties of the State of California, on December 23, 2015, the Los Angeles County Superior Court, Case No. 1-05-CV-049053, entered an Order and Statement of Decision, whereby it approved and adopted a Judgment and Physical Solution (hereinafter “Judgment”) as a mechanism to manage the groundwater rights in said Antelope Valley of California.

B. Thereafter, on March 16, 2021, the California Court of Appeals entered into an Opinion affirming the aforementioned Judgment. These cases related to the adjudication of groundwater rights and are commonly known as the “Antelope Valley Groundwater Cases”.

C. Pursuant to the aforementioned Judgment, Owner is the owner and has the right to extract, use and/or transfer of no less than ONE THOUSAND THREE HUNDRED THIRTY TWO (1,332) acre-foot of permanent or perpetual water rights as set forth in the Judgment. The Judgement, as well as Owner’s rights thereunder, is administered by the Antelope Valley Watermaster (“Watermaster”).

D. Owner is a “Party” to the Antelope Valley Groundwater Adjudication, as that term is defined in Section 3.5.27 of the Judgment. By virtue of the foregoing, Owner possesses: (i) standing to enter into this Agreement; (ii) the legal right to extract and produce water pursuant to the Judgment; and (iii) the legal right to transfer water rights pursuant to the Judgment and applicable laws.

E. Buyer is a public entity and an adjudicated party, as that term is defined in Section

3.5.27 of the Judgment and Physical Solution and is not required to intervene in the Judgment to acquire the water rights that are the subject of this Agreement.

F. Buyer desires to acquire FIVE HUNDRED (500) permanent acre foot of water rights (the “Water Rights”) from Owner.

G. Owner desires to transfer the Water Rights to Buyer, pursuant to the terms of this Agreement.

H. As a public agency, Buyer holds the power of eminent domain pursuant to Government Code section 40404, among other statutes. If Owner did not voluntarily agree to the

Page 2 of 10 ends

sale of the Water Rights as defined and conveyed herein, Buyer’s staff would have recommended and Buyer’s City Council would have considered acquiring the same by eminent domain.

I. Under this Agreement, Owner will grant, assign, convey, sell and otherwise transfer to Buyer, and Buyer will accept from Owner, all of Owner’s right, title, and interest in and to the Water Rights, subject to the conditions, covenants, provisions and terms of this Agreement.

AGREEMENT
IN CONSIDERATION of the foregoing recitals and the mutual promises set forth herein, Owner and Buyer agree as follows:

1. Water Rights Transfer. Owner hereby grants, assigns, conveys, sells and otherwise transfers to Buyer, and Buyer hereby purchases from Owner, the Water Rights.

2. Consideration to Owner. In consideration of the foregoing, Buyer shall pay or remit to Seller the sum of FIVE MILLION DOLLARS ($5,000,000.00) (the “Total Consideration”). The Total Consideration shall be paid by Buyer within thirty (30) days of the Transfer Date (as defined in Section 3 of this Agreement) to Owner by wire transfer of funds to the following account:

Derryberry & Associates LLP Client Trust Account Wire Instructions

3. Antelope Valley Watermaster Application and Approval Required.

Owner shall execute and deliver to Buyer all documents which may be required by the Antelope Valley Watermaster (“Watermaster”) to reflect the transfer to Buyer of the Water Rights which are the subject of this Agreement. All such documents shall be in such form and substance as shall be reasonably satisfactory to Owner, Buyer, and the Watermaster. Without limitation, Owner shall execute, acknowledge and deliver to Buyer a copy of the Watermaster’s Transfer Request Form (“Watermaster Form”), attached as Exhibit A. Upon receipt, Buyer shall execute, acknowledge and deliver the Watermaster Form to the Watermaster. The Parties shall file the Watermaster Form to be heard before the Watermaster at the earliest practicable date. The Watermaster Form shall provide that, subject to the Watermaster’s approval, the Water Rights transfer to Buyer shall be effective as of January 1, 2026 (“Transfer Date”). To accomplish this, the Parties shall promptly provide such documents and information to the staff of the Watermaster as they may reasonably request from the Parties in connection herewith. If the Watermaster fails to take any action which is necessary for the transfer contemplated by this Agreement to become effective on the Transfer Date, then the Parties shall negotiate in good faith to determine whether to extend or change the Transfer Date; provided, however, that each Party shall retain sole and absolute discretion to decide whether to agree to such an extension or modification. Notwithstanding anything to the contrary herein, neither Party shall be required to execute any document or take any action that will result in any liability or expense (other than nominal expenses such as telephone charges and overnight delivery charges). Owner shall be responsible for any fees associated with the submission of the Watermaster Form as set forth herein. Notwithstanding any provision of this Agreement, the Transfer Date and Buyer’s obligation to pay the Total Consideration shall be contingent upon and subject to the Watermaster’s approval.

Page 3 of 10 ends

4. Authority.
a. Each Party has the right, power, and authority to enter into this Agreement and to perform its obligations hereunder, and the person(s) executing this Agreement on behalf of each Party have the right, power, and authority to do so.
b. To each Party’s actual knowledge, other than the approval of the Watermaster, no consent from any third party (including any third party governmental agency or authority) is required in connection with the transfer of Water Rights to the Buyer pursuant to this Agreement. c. To each Party’s actual knowledge, each Party is not now, or at any time relevant for the implementation of this Agreement, in violation of any law, ordinance, rule, regulation, or administrative or judicial order affecting each Party’s right to transfer Water Rights or take any action under this Agreement.

5. Warranties.
a. Each Party warrants to the other party that it has the right, power and authority to enter into this Agreement and to perform its duties, obligations and responsibilities hereunder and that the person executing this Agreement on its behalf has the right, power and authority to do so. b. Owner has no knowledge of any outstanding dispute, litigation, arbitration, judgment, or other action against or involving Owner that would in any manner affect the consummation of this transaction or constitute any cloud upon Owner’s title to the Water Rights.

Owner has no knowledge of any pending litigation, proceedings, or investigations, or any threats of litigation, proceedings, or investigations, which might result in any cloud upon the title to the Water Rights, or any other material change in the value of the Water Rights, other than those consolidated appeals challenging the Judgment that are still pending as of the Effective Date. c. Owner now has, and as of the Effective Date will have, good and merchantable, fee simple title to the Water Rights. The Water Rights are in good standing with the Watermaster, the County of Los Angeles, the State of California, and all other government agencies with jurisdiction or authority over the Water Rights. The Water Rights have not been forfeited or abandoned, and are not subject to lien, receivership, nor any other encumbrance whatsoever.

6. Conditions Precedent. The obligation of Buyer to close this transaction and to make payment pursuant to Section 2 herein is subject to the fulfillment of each of the following conditions, which Owner and Buyer shall utilize their best efforts and highest possible diligence to achieve:
a. The Watermaster shall verify that Owner is the owner of the Water Rights. In furtherance of the foregoing, Owner shall provide to the Watermaster any and all documents that it requires to confirm that Owner is the owner of the Water Rights, and that Owner possesses sole legal right and standing to convey the Water Rights; and b. The Watermaster shall communicate its approval of this transaction, via execution

Page 4 of 10 ends

of the Transfer Request Form by a Watermaster Engineer and an authorized Board Member or Secretary of the Watermaster Board.

Upon fulfillment of the preceding conditions prior to the Transfer Date, this Agreement shall constitute a binding obligation of Buyer to remit the Total Consideration to Owner. Owner shall prepare and deliver to Buyer such documents as reasonably requested by Buyer to implement or memorialize this transaction.

7. Time of the Essence. Time is of the essence as to each and every provision of this Agreement. However, if any of the Conditions Precedent are not satisfied on or before December 31, 2025, then this Agreement shall be null and void, and of no further force or effect, with the Parties having no further duties, liabilities, obligations or responsibilities to each other under this Agreement and the transaction contemplated thereunder.

8. Right to Cure. Neither Party shall be considered in default of this Agreement unless it has failed to perform under the Agreement for a period of ten (10) business days after receipt of written notice of default from the Party not in default. The notice of default shall specify in detail the nature of the alleged default and the manner in which the default may be cured. Upon the default by any Party under this Agreement, the Party not in default shall have all rights and remedies provided by law including, but not limited to, the right to seek damages or specific performance.

9. Notices. All communications and notices required by this Agreement, and all demands (collectively “Notices”) of any kind shall be made in writing and personally served or sent by registered or certified mail, postage prepaid to the following:

Owner: Tivoli Investments, LLC
PO Box 8010
Lancaster, CA 93539
[email protected]
With Copy to: R. Steven Derryberry, Esq.

Derryberry & Associates LLP
41240 11th Street West, Suite A
Palmdale, CA 93551
[email protected]
Buyer: City of Lancaster
_________________
_________________
_________________

Any Notice personally served shall be effective upon service. Any Notice sent by mail, and properly addressed, shall be effective upon date of receipt, or refusal as indicated on the return receipt. Either Party may change its address for Notices by Notice to the other given in a manner provided in this subparagraph. Any Party receiving any Notice under this Agreement may receive

Page 5 of 10 ends

and accept service thereof via email, so long as said Party provides a separate reply email confirming receipt of any such Notice to the Party giving such Notice.

10. General Contract Terms.
a. Recitals. The Parties hereby stipulate and agree for all purposes that the recitals set forth above are and shall remain binding upon the Parties and conclusive with respect to the subject matter thereof. The Parties hereby forever waive their right to challenge, oppose, or audit documentation relating to the facts set forth in the recitals. b. Fully Negotiated Agreement. This Agreement has been fully negotiated by the Parties hereto, and as such, neither Party shall be deemed to be the drafter of this Agreement for purposes of interpretation or enforcement.
c. Entire Agreement. This Agreement (after full execution) memorializes and constitutes the complete and final integration and entire agreement between the Parties with respect to the subject matter hereof, and supersedes and replaces all prior and contemporaneous negotiations, proposed agreements, and agreements, whether written or unwritten, whether express or implied. The Parties declare and represent that no representation, warranty, covenant, understanding, agreement, restriction, condition, promise, inducement, or agreement not herein expressed has been imposed or made by the other Party or by any other person or entity. This Agreement may be amended and modified only by an agreement in writing agreed to and signed by all Parties to this Agreement. Any purported amendment or modification of this Agreement not memorialized in a writing signed by all Parties to this Agreement shall be null and void. All covenants, warranties, and representations set forth herein shall survive this Agreement. d. Further Documents. The Parties hereby agree and promise to promptly execute such further documents and perform such further acts as may be reasonably necessary or appropriate to fully implement the provisions and intent of this Agreement. e. Severability. If any provision, clause, or term of this Agreement held to be unenforceable, illegal, invalid, or incorrect by a court of competent jurisdiction, such provision, clause, or term shall be deemed to be severed and deleted, and neither such provision, clause, or term, nor its severance and deletion, shall affect the validity or interpretation of the remaining provisions and terms of this Agreement.
f. Time of Essence. There are no grace periods for the payments or actions set forth herein. It is herein expressly acknowledged, understood and agreed, by and between the Parties hereto that time is of the essence with respect to all payments and executory acts set forth herein. g. Successors and Assigns. This Agreement shall be binding upon and shall inure to the respective heirs, successors, and assigns of the Parties hereto. However, nothing contained in this paragraph shall be construed or interpreted to permit the transfer, conveyance, or encumbrance of the Parties' respective rights hereunder, unless specifically authorized under this Agreement or permitted by law.
h. Legal Advice. The Parties hereby acknowledge that they have been given ample

Page 6 of 10 ends

opportunity to review this Agreement with legal counsel of their own choice, and that the provisions hereof and their legal effect have been fully analyzed and explained by such counsel. The Parties further confirm that they fully understand the terms, conditions, and provisions of this Agreement, and believe them to be fair, just, and reasonable under the existing circumstances. The Parties further confirm that each is entering into this Agreement freely and voluntarily, and that their execution, of this Agreement is not the result of duress, undue influence, collusion, or improper or illegal agreement or agreements, and the Parties fully and completely intend to be bound and restricted by the terms of this Agreement.
i. Attorney’s Fees and Costs. In the event that it becomes necessary for any Party hereto to bring or defend any action, arbitration, appeal, or other legal proceeding to enforce or interpret the terms of this Agreement, the Prevailing Party in such proceeding shall be entitled to a judgment, award, and/or order against the non-Prevailing Party for all attorneys' fees and costs of suit incurred therein by the Prevailing Party.
j. Governing Law. This Agreement is made and entered into and shall in all respects be interpreted, enforced, and governed under the laws of the State of California. k. Jurisdiction and Venue. Subject matter jurisdiction and venue for any court action relating to this Agreement shall be in the State of California, Los Angeles County, North District (Lancaster Courthouse).
l. Gender and Number. As used herein, all masculine, feminine, and neuter terms, and all singular and plural terms, shall be interchangeable where the context so requires or implies. m. Paragraph Headings. The titles to the paragraphs of this Agreement are solely for the convenience of the reader and shall not be used to explain, modify, simplify, expand, limit, or aid in the interpretation or enforcement of this Agreement.
n. Authority. Any person executing this Agreement on behalf of a corporation, partnership, limited liability company, trust, estate, or other non-human entity hereby represents and certifies that they are fully, completely, and expressly authorized to execute this Agreement on behalf of such entity, and to bind such entity to the terms of this Agreement. o. Counterparts. This Agreement may be executed and delivered via electronic signatures, email, or other facsimile, and in counterparts, each of which shall be deemed an original against the Party whose signature appears thereon, and when all counterparts are held together as one, the sum of all counterparts will be considered the whole document. The exchange and delivery of original signatures, and the statement below that signatures should be notarized, shall be for additional authentication only, and is not a condition precedent to the formation of a binding agreement. p. Binding Agreement. By signing below, the Parties hereby warrant that they agree to, and are hereby bound, obligated, liable, and restricted by all of the terms, conditions, and recitals set forth in this Agreement.
q. Specific Enforcement. The rights granted to the Parties under this Agreement are of a special and unique kind and character, and if there is a breach by any Party of any material

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provision of this Agreement, the other Party would not have any adequate remedy at law. It is expressly agreed that the rights of the Parties may be enforced by any action for specific performance and such other equitable remedies as provided under the laws of the State of California, including, without limitation, injunctive relief. Either Party’s use of any remedy specified herein for the enforcement of this Agreement is not exclusive and shall not deprive such Party of, or limit the application of, any other remedy provided at law or in equity. r. No Third-Party Beneficiary. This Agreement is made for the sole benefit of the Parties and their respective successors and assigns, and no other person or persons shall have any right of action hereon.
s. No Partnership or Joint Venture Created. Nothing in this Agreement shall be construed, deemed or interpreted to create the relationship of principal and agent, or of partnership, joint venture or any other association between the Parties, other than that of Transferor and Transferee.
t. Recording. Either Party shall, upon request of the other, execute, acknowledge and deliver to the other an original of this Agreement for recording purposes.

The Parties have executed this Agreement acknowledging on the date provided below.

OWNER:

TIVOLI INVESTMENTS, LLC
______________________________________
By: John A. Calandri
Its: Manager
BUYER:

CITY OF LANCASTER
______________________________________
By: Trolis Niebla
Its: City Manager
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
) ss.

COUNTY OF ____________________________ )
On ___________________ before me, ____________________________________, Notary Public, personally appeared _____________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal

SIGNATURE OF NOTARY PUBLIC
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
) ss.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal

SIGNATURE OF NOTARY PUBLIC

Page 10 of 10 ends

PAGE 1 OF 9

4934-3479-7409v2/022283-0548

OPTION AGREEMENT
This Option Agreement (the “Option Agreement”) is made and entered into as of _______________, 2025 (the “Date of Agreement”), by and between TIVOLI INVESTMENTS, LLC, a California limited liability company (“Optionor”), and the CITY OF LANCASTER, a municipal corporation and charter city (“Optionee”). Optionor and Optionee are sometimes referred to herein individually as a “Party” and together as the “Parties”.

Recitals
A. As a matter of history, after years of litigation related to the groundwater rights in the Antelope Valley areas of Los Angeles and Kern Counties of the State of California, on December 23, 2015, the Los Angeles County Superior Court, Case No. 1-05-CV-049053, entered an Order and Statement of Decision, whereby it approved and adopted a Judgment and Physical Solution (hereinafter “Judgment”) as a mechanism to manage the groundwater rights in said Antelope Valley of California.

B. Optionor is a “Party” to the Antelope Valley Groundwater Adjudication, as that term is defined in Section 3.5.27 of the Judgment. By virtue of the foregoing, Optionor possesses:
(i) standing to enter into this Option Agreement; (ii) the legal right to extract and produce water pursuant to the Antelope Valley Groundwater Cases; and (iii) the legal right to transfer water rights pursuant to the Antelope Valley Groundwater Cases and applicable laws.

C. Optionee is a public entity and is an adjudicated Party to the Antelope Valley Groundwater Adjudication, as that term is defined in Section 3.5.27 of the Judgment and is not required to intervene in the Judgment to acquire the Water Rights, defined below, subject to this Option Agreement.

D. As a public agency, Optionee holds the power of eminent domain pursuant to Government Code section 40404, among other statutes. If Optionor did not voluntarily agree to the Option as defined and conveyed herein, Optionee’s staff would have recommended and Optionee’s City Council would have considered acquiring the same by eminent domain.

E. Optionor owns groundwater rights pursuant to the Judgment, which rights are administered by the Antelope Valley Watermaster (“Watermaster”), and desires to grant to Optionee an option to purchase FIVE HUNDRED (500) acre feet of such groundwater rights (hereinafter “Water Rights”) for a purchase price of FIVE MILLION DOLLARS ($5,000,000.00) (“Purchase Price”). Optionee desires to acquire an option to purchase the Water Rights, subject to the terms and conditions of this Option Agreement.

F. Under a separate agreement dated August 26, 2025 (“Separate Agreement”), Optionee and Optionor have an agreement for Optionee to acquire FIVE HUNDRED (500) acre feet of water rights which are not subject to or related to this Option Agreement.

NOW THEREFORE, in consideration of these premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Optionor and Optionee do hereby agree as follows:

PAGE 2 OF 9

4934-3479-7409v2/022283-0548

1.GRANT OF OPTION
Optionor hereby grants to Optionee, the exclusive right and option (the “Option”) to purchase the Water Rights in accordance with the terms and conditions of the Water Transfer Agreement (“Agreement”) that is attached hereto as Exhibit A. By executing this Option Agreement, Optionor acknowledges that (i) Optionor has the full power and authority to enter into and perform its obligations under this Option Agreement and (ii) Optionor is the sole owner of the Water Rights.

2. TERM OF OPTION
Subject to the Watermaster’s approval, the term of this Option Agreement shall commence on January 1, 2026, and shall expire on December 31, 2028 (the “Term”), unless earlier terminated pursuant to the terms hereof.

3. CONSIDERATION FOR OPTION
For the Option to purchase the Water Rights, Optionee shall pay to Optionor annual consideration for the Option (the “Option Payments”). To maintain the Option, Optionee shall pay annual Options Payments of $262,500.00, which shall be due and payable on or before January 1st of each year subsequent to the execution of this Option Agreement, starting January 1, 2026, until the Option is exercised or this Option Agreement is terminated, whichever occurs first. The Option Payments shall NOT be applied to the Purchase Price, if or when Optionee exercises the Option. The Option Payments are deemed due when paid without proration or refund if the Option Agreement is terminated prior to the end of a calendar year. Notwithstanding any other provision of this Option Agreement, Optionee shall have no obligation to begin making Option Payments unless and until this Option Agreement is approved by the Watermaster.

4. METHOD OF EXERCISING OPTION
Optionee may exercise the Option at any time during the Term. In the event Optionee elects to exercise the Option during the Term, Optionee shall give written notice (the “Exercise of Option Notice”) indicating its intent to exercise the Option. Within thirty (30) days after the Exercise of Option Notice is given to Optionor, Optionor shall sign, date and deliver two copies of the Agreement to Optionee who shall execute such copies of the Agreement and return to Optionor one fully executed original of the Agreement. At the time of execution and delivery of the Agreement, Optionor shall deliver to Optionee such additional documents, affidavits, certificates and other items as Optionee may reasonably require.

5. TERMINATION
Optionee may terminate this Option Agreement at any time during the Term by giving written notice to Optionor, however. If this Option Agreement is terminated pursuant to this section, then Optionor shall not be required to refund any Option Payments already received from Optionee under the terms of this Option Agreement.

6. BINDING NATURE AND ASSIGNMENT
PAGE 3 OF 9

4934-3479-7409v2/022283-0548
This Option Agreement shall be binding on and inure to the benefit of the successors and permitted assigns of Optionor and Optionee. Optionee shall have the right, without obtaining Optionor’s consent, to sell, assign, encumber or otherwise transfer all or any portion of its right, title or interest under this Option Agreement, provided, that Optionee provides Optionor with the name, address, telephone number and contact person for such assignee and that such assignee assumes all duties and obligations of Optionee hereunder. Upon such assumption, Optionee shall have no further obligations or liability hereunder.

7. NOTICE
Any notice or communication required or permitted to be given by any provision of this Option Agreement will be in writing and will be deemed to have been given when delivered or on the first business day following the day sent by nationally-recognized overnight courier, or the fifth (5th) business day after the same is deposited in the United States Mail, certified mail, postage prepaid or (iii) two (2) days after delivery to a reputable overnight courier (provided receipt is obtained and charges prepaid by the delivering Party) and (c) addressed as follows:

Optionor: Tivoli Investments, LLC
PO Box 8010
Lancaster, CA 93539
[email protected]
With Copy to: R. Steven Derryberry, Esq.

Derryberry & Associates LLP
41240 11th Street West, Suite A
Palmdale, CA 93551
[email protected]
Optionee: City of Lancaster
Trolis Niebla, City Manager
44933 Fern Avenue
Lancaster, CA 93534
[email protected]

8. AMENDMENTS
This Option Agreement shall not be amended or modified in any way except by an instrument signed by Optionor and Optionee.

9. GOVERNING LAW; VENUE; ATTORNEY’S FEES
This Option Agreement shall be construed, enforced, governed by, interpreted and performed pursuant to the internal laws, and not the law of conflicts, of the State of California applicable to agreements, contracts and understandings made and to be performed in such state.

The Parties also agree that this Option Agreement is made and to be performed in Los Angeles County, California; however, if the Parties are unable to amicably resolve any dispute arising out PAGE 4 OF 9

4934-3479-7409v2/022283-0548
of or in connection with this Option Agreement, then all legal proceedings shall be held in the Los Angeles County Superior Court. The Parties agree that the subject matter of this Option Agreement is unique, and that specific performance shall be available to enforce the obligations undertaken under this Option Agreement. The Parties agree that any rule of construction to the effect that ambiguities are to be resolved in favor of either Party shall not be employed in the interpretation of this Option Agreement and is hereby waived. If either Party brings an action or proceeding in connection with this Option Agreement or any of the terms, covenants or conditions hereof, the prevailing Party shall be entitled to recover from the other Party reimbursement for all reasonable expenses, costs and attorneys’ fees incurred in connection therewith and any related appeals.

10. MISCELLANEOUS

10.1 Entire Agreement. This Option Agreement constitutes the Parties’ sole and entire agreement and supersedes any prior understandings or written or oral agreements between the Parties with respect to the subject matter hereof which are of no further force or effect; provided, however, that this section shall not apply to the Separate Agreement. The Exhibits referred herein are integral parts hereof and are made a part of this Option Agreement by reference.

The recitals at the beginning of this Option Agreement are hereby incorporated herein and expressly made a part of this Option Agreement.

10.2 Severability. If any term or provision of this Option Agreement, or the application thereof to any person or circumstance, shall to any extent be invalid or unenforceable, the remainder of this Option Agreement, or the application of such provision to persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each provision of this Option Agreement shall be valid and shall be enforceable to the extent permitted by law.

10.3 Miscellaneous. The use of the neuter gender includes the masculine and feminine, and the singular number includes the plural, and vice versa, whenever the context so requires. Captions used herein are for convenience of reference only and do not affect the meaning or intent hereof. If Optionor consists of more than one person or entity, then (i) each reference herein to “Optionor” shall include each person and entity signing this Option Agreement as or on behalf of Optionor and (ii) the liability of each person and entity signing this Option Agreement as or on behalf of Optionor shall be joint and several. The Parties shall at all times hereafter execute any documents and do any further acts that may be necessary or desirable to carry out the purposes or intent of this Option Agreement, including without limitation, any estoppel certificates or similar statements that either Party or is lenders may require from time to time. This Option Agreement may be executed with counterpart signature pages and in duplicate originals, each of which shall be deemed an original, and all of which together shall constitute a single instrument.

10.4 Recording. Either Party shall, upon request of the other, execute, acknowledge and deliver to the other an original of this Option Agreement for recording purposes.

10.5 Watermaster Approval. Prior and as a condition precedent to the effectiveness of this Option Agreement, including Optionee’s obligation to commence the Option Payments, Optionor shall submit a competed application to the Watermaster for approval of and/or PAGE 5 OF 9

4934-3479-7409v2/022283-0548
consent to this Option Agreement. This Option Agreement shall be subject to any and all requirements imposed by the Judgement, as wells as any and all rules, regulations, policies, and/or guidelines prolongated by the Watermaster.
[SIGNATURES ARE FOUND ON THE FOLLOWING PAGE]
PAGE 6 OF 9

4934-3479-7409v2/022283-0548
IN WITNESS WHEREOF, the Parties have executed this Option Agreement as of the Effective Date.

OPTIONOR:

TIVOLI INVESTMENTS, LLC
______________________________________
By: John A. Calandri
Its: Manager

OPTIONEE

CITY OF LANCASTER
______________________________________
By: Trolis Niebla
Its: City Manager

1.docx –
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
) ss.

COUNTY OF ________________________________ )
On ___________________ before me, ____________________________________, Notary Public, personally appeared _____________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal

SIGNATURE OF NOTARY PUBLIC

STATE OF CALIFORNIA )
) ss.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal

SIGNATURE OF NOTARY PUBLIC
4934-3479-7409v2/022283-0548

EXHIBIT A

PURCHASE AGREEMENT
[INSERT]

APPRAISAL REPORT

Adjudicated Water Rights (500 Acre Feet)
Held by Calandri Farms, Inc.

Antelope Valley Groundwater Basin
Los Angeles County, California

File No. 15030

EXECUTIVE SUMMARY

Appraisal Project Adjudicated Water Rights (500 Acre Feet) Held by Calandri Farms, Inc.

Antelope Valley Groundwater Basin
Los Angeles County, California

Interest Valued 100% Fee Simple (Adjudicated Water Rights Only)

Land Area N/A

Adjudicated Water Right 500 Acre Feet (Post Ramp-down)

Flood Hazard N/A

Zoning N/A

Present Use Adjudicated Water Right s, Available for Domestic or Agriculture Use

Highest and Best Use Adjudicated Water Right s, Available for Domestic or Agriculture Use

Value Indicated by

Cost Approach N/A

Income Approach N/A

Sales Comparison Approach $5,000,000

Value Conclusion $5,000,000

Fair Market Rental Value $509/AF/Year

Effective Date of Value May 8, 2025

Date of Report May 13, 2025

TABLE OF CONTENTS

DESCRIPTION, ANALYSIS AND CONCLUSION

Purpose of the Appraisal 1
Intended Use of Report 2
Intended User 2
Scope of the Appraisal 2
Assumptions and Limiting Conditions 3
Description of Property Rights Appraised 4
Owner of Record/Sales History 4
Interest Valued 4
Effective Date of Value 4
Date of Report 4
Location Map 5
Antelope Valley Regional Analysis 6
Subject Map 8
Area Analysis 9
Highest and Best Use 10
Summary of Analysis and Valuation 13

Sales Comparison Approach 14
Fair Market Rental Value 19
Conclusion and Final Opinion of Value 21

Certification 22

ADDENDA

Qualifications of Randy K. Merriman, MAI, SRA
Qualifications of Christine L. Johnson, Appraiser
Merriman Hurst & Associates Proposal Letter
Antelope Valley Basin Water Rights Adjudication –
Per Santa Clara Case No. 1-05-CV-049053

MERRIMAN HURST
& A S S O C I A T E S I N C.

Real Estate Appraisers & Consultants
Randy K. Merriman, MAI, SRA 140 S. Montclair St., Suite C David E. Hurst, MAI Bakersfield, CA 93309
Christine Johnson, Appraiser (661) 832-0322
(661) 832-3417 FAX

May 13, 2025

City of Lancaster Re: File No. 15030
44933 Fern Avenue Appraisal Report – Antelope Valley Lancaster, California 93534 Adjudicated Water Rights Attn: Patti Garibay, Held by Calandri Farms, Inc.

Director – Community Development Los Angeles County, California

Dear Ms. Garibay:

In response to your request, we have prepared this Appraisal Report in connection with the adjudicated water rights referred to above which ar e described in greater detail elsewhere in this report.

PURPOSE OF THE APPRAISAL:

The purpose of this appraisal is to provide the appraisers ’ estimate of the market value of the adjudicated water rights described herein as of May 8, 2025. Market value is defined by the federal financial institutions regulatory agencies as follows:

Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

(1) buyer and seller are typically motivated;

(2) both parties are well informed or well advised, and acting in what they consider their own best interests;

(3) a reasonable time is allowed for exposure in the open market;

(4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto; and

(5) the price represents the normal consideration for the property sold unaffected by special or creative financial or sales concessions granted by anyone associated with the sale.
- 2 -

Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs that are normally paid by the sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparison to financing terms offered by a third party institution lender that is not already involved in the property trans action. The dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraisers’ judgment.

(Source: Office of the Comptroller of the Currency under 12 CFR, Part 34, Subpart C-Appraisals, 34.42 Definitions [h].)

INTENDED USE OF REPORT: The intended use of this report is to negotiate a purchase of water rights.

INTENDED USER: This report has been prepared for the exclusive use by the client, City of Lancaster, c/o Patti Garibay , Director – Community Development , and her designees. The appraisal is not to be utilized by any other user than those identified.

SCOPE OF THE APPRAISAL:

The scope of this appraisal involves compiling and analyzing market data relevant to the valuation of the subject water rights. The data utilized in this appraisal has been gathered from various sources of information to include public records, the Antelope Valley Watermaster, and interviews with real estate brokers, buyers, and sellers in the marketplace. The sources of the data are considered to be reliable. Data believed unreliable was not included in the report nor used as a basis for the value conclusions. In preparing this appraisal, the appraisers;

(1) Provided sufficient information to legally and physically identify the underlying groundwater right interest that is subject to this appraisal;

(2) Relied on information taken from Santa Clara Court Case No. 1 -05-CV-049053, which pertains to the adjudicated water rights described herein, as well as the restrictions and potential uses;

(3) Gathered information on area/neighborhood and comparable sales characteristics as well as lease/rental data pertaining to water right sale/lease transactions in the area described as the Antelope Valley Groundwater Basin;

(4) Confirmed and analyzed the data and applied the Sales Comparison Approach to value.

A discussion of the approaches to value and their applicability is shown in the Summary of Analysis and Valuation section of this report.

Completion of this assignment includes preparation of an Appraisal Report that is in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP). - 3 -

ASSUMPTIONS AND LIMITING CONDITIONS:

1. This is an Appraisal Report which is intended to comply with the reporting requirements set forth under Standard Rule 2 -2(a) of the Uniform Standards of Professional Appraisal Practice for a n Appraisal Report. As such, it includes summary discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraisers’ opinion of value. Supporting documentation concerning the data, reasoning, and analyses is summarized in this report. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraiser s are not responsible for unauthorized use of this report.

2. No responsibility is assumed for legal or title considerations. Title to the water rights are assumed to be good and marketable unless otherwise stated in this report.

3. The water rights are appraised free and clear of any or all liens and encumbrances unless otherwise stated in this report.

4. Responsible ownership and competent property management are assumed unless otherwise stated in this report.

5. All engineering is assumed to be correct. Any plot plans and illustrative material in this report are included only to assist the reader in visualizing the property.

6. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless otherwise stated in this report.

7. It is assumed that all applicable use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in this appraisal report.

8. It is assumed that all required licenses, certificates of occupancy, or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use o n which the value opinions contained in this report are based.

9. Any sketch in this report may show approximate dimensions and is included to assist the reader in visualizing the property. Maps and exhibits found in this report are provided for reader reference purposes only. No guarantee as to accuracy is expressed or implied unless otherwise stated in this report. No survey has been made for the purpose of this report.

10. This appraisal is to be used only in its entirety and no part is to be separated from the whole report. All conclusions and opinions concerning the analysis as set forth in the report were prepared by the appraiser whose signature appear s on the appraisal report. No change of any item in the report shall be made by anyone other than the appraiser and/or officer of the firm. The appraiser and firm shall have no responsibility if any such unauthorized change is made. Neither all nor any part of the contents of this report shall be conveyed to any person or entity, other than the appraiser ’s or firm's client, through advertising, solicitation materials, public relations, news, sales, or other media without the written consent and approval of the authors, particularly as to valuation conclusions, the identity of the appraiser or firm with whi ch the appraiser is connected, or any reference to the Appraisal Institute or the American Society of Farm Managers and Rural Appraisers.

Further, the appraiser or firm assume no obligation, liability, or accountability to any third party. If this report is placed in the hands of anyone but the client, client shall make such party aware of all the assumptions and limiting conditions of the assignment.

- 4 -

DESCRIPTION OF PROPERTY RIGHTS APPRAISED: The property rights are briefly described as follows:

Adjudicated Water Rights within the Antelope Valley
Groundwater Basin Stipulated by Santa Clara Case No. 1-05-CV-049053, Judicial Council Coordination Proceeding No. 4408.

Per agreement referenced above, Calandri Farms, Inc. is entitled to 500 acre feet (post ramp-down) overlying production rights to groundwater within the area commonly known as the Antelope Valley Groundwater Basin, Los Angeles County, California. At the time of the court proceedings, Calandri Farms Inc. was identified as John Calandri, B.J. Calandri, Sunrise Farms.

A summary of the overlying production rights for all water users in the Antelope Valley Basin is identified by Santa Clara Case No. 1-05-CV-049053, Exhibit 4, a copy of which is included in the Addenda of this report.

OWNER OF RECORD/SALES HISTORY: According to information provided by the client, the owner of record for the water rights appraised is Calandri Farms, Incorporated. Public records identifies the mailing address as 41228 12th St W #D, Palmdale, California 93551. The Calandri family has had the overlying right to pump groundwater from the Antelope Valley Groundwater Basin since the time they began farming in the mid 1950’s. In November 2015, a court settlement resulted in an adjudication of the water rights for the Antelope Valley Basin. Calandri Farms has owned the water rights that are the subject of this appraisal since this time. There has been no arms’ length transfer of the water rights during the past three years. Information provided by the client indicates that t here is a pending agreement to purchase the water rights at an agreed upon price of $10,000 per acre foot. The buyer (City of Lancaster) is a municipal water agency looking to acquire additional water rights for future development purposes. The agreement is further analyzed in the Sales Comparison Approach section of this report.

INTEREST VALUED: 100% fee interest, adjudicated rights only, subject to reservations of record and Assumptions and Limiting Conditions shown herein. A Preliminary Title Report was not furnished to the appraisers.

EFFECTIVE DATE OF VALUE: May 8, 2025

DATE OF REPORT: May 13, 2025

- 5 -

LOCATION MAP

- 6 -

ANTELOPE VALLEY REGIONAL ANALYSIS:

Location – The Antelope Valley, often referred to as “High Desert” region lies 70 miles northeast of Los Angeles in the northeastern most portion of Los Angeles County. Kern County lies immediately to the north, Ventura County to the west and San Bernardino Count y to the east.

Within the greater Antelope Valley area there are many communities, the largest are the cities of Lancaster and Palmdale, with smaller towns and communities such as Quartz Hill, Rosamond, Lake Elizabeth and Lake Hughes, Pearblossom, Little Rock and Leona Valley. By most recent estimates the greater Antelope Valley has a total estimated population of 542,000. The most recent population estimate for Lancaster indicates a total of 166,236 residents, and in Palmdale there are 161,404 residents.

As noted previously, the Antelope Valley is referred to as the high desert, sitting at approximately 2,500 feet above sea level. The air is usually dry, often windy, and typically experiences 300 sunny days per year. Highs in the summer reach the 90’s and 100’s, with lows in the winter often below freezing at night. The average annual high temperature is 98˚ Fahrenheit in the summer and 59˚ Fahrenheit in the winter. The San Gabriel Mountain Range forms the southern boundary of the Antelope Valley, and t he Tehachapi/Sierra Nevada Mountain Range forms the western boundaries. High desert areas extend to the north and east, including Mojave Desert located 30 to 40 miles to the northeast.

Access into the study area is classed good and provided by State Highways 14 and 138 which bisect the cities of Lancaster and Palmdale traveling north and south. Highway 14 connects with Highway 58 to the north and Interstate Freeway 5 to the southwest. Access to and from state highways is provided by surface roads, city and county maintained.

Transportation - The area is served by the Palmdale Airport, located in the City of Palmdale.

General William J. Fox Airfield is within a north portion of the Lancaster city limits. Alternate transportation is provided by the Antelope Valley Transportation Authority and the Southern Pacific Railway. Commuter transportation to the Los Angeles Basin is provided by the Metrolink.

Regional Economics – Over the years, the mainstay of the local economy has been directed towards the aerospace industries at Air Force Plant No. 42 within the boundaries of the Palmdale Airport and Edwards Air Force Base to the north in Kern County. China Lake Naval Weapon s Base, located in Kern County to the north is also another major employer. There are also employment opportunities throughout the area which include the Antelope Valley Hospital Medical Center, Lancaster Business Park, US Borax and Chemical Company, Ante lope Valley Union High School District, and several others. There is also substantial agricultural activity taking place in, and around the Palmdale and Lancaster areas. The sandy soil conditions in this location are well suited for a wide variety of vegetable crops, many of which are grown organically.

There has been active solar energy development, most notably in the northern and western portions of the Antelope Valley.

Trend – The overall trend in the study area is classed as static to gradually upwards and relates to the gradually expanding population that is relocating from the Southern California Basin, which is resulting in demand for additional services and housing to se rve the expanding population.

Employment opportunities at Air Force Plant No. 42 and Edwards Air Force Base continue to be the mainstay of the local economy. Substantial employment is also generated by some of the larger aerospace contractors to include Northrop Grumman Corporation and Lockheed Martin Company. - 7 -

There has also been a substantial upward trend in recent years toward renewable energy development including solar and wind energy, most of which is taking place in the northern and western areas of the Antelope Valley, and surrounding mountain ranges. On e publication notes that the Antelope Valley is currently on the precipice of becoming the “Renewable Energy Center” providing solar and wind energy generated power sources, green technologies, and renewable energy for many Southern California residents. It is also interesting to note that a substantial portion of the local work force in the Antelope Valley commutes to the Los Angeles Basin for employment on a daily basis. The average daily commute time for Lancaster and Palmdale workers is 89 minutes and 67 minutes, respectively.

Both the economy and real estate markets in Palmdale and Lancaster tend to parallel market activity in the Southern California Basin. Substantial upward trends in growth were evident during the early to mid -2000’s. This was most notable within the housin g market. Subsequent to 2005/2006 the housing market became oversupplied and was being dominated by foreclosures.

During this time there were numerous blocks of land that were in various stages of development, including subdivisions with fully finished lots as well as partially developed subdivisions. In many cases development and new construction activity came to a complete halt. More recent trends have seen increased demand in the new housing market. New tract style residential construction activity is taking place on a gradual basis, mostly within infill locations of both Palmdale and Lancaster. There are some cases where subdivision entitlements are being placed on land where the prior mapping entitlements have expired. There has also been some new sales and development activity within both the commercial and industrial markets, however, prices being paid for both these type land classes and developed properties have been relatively static. Trends noted in the study area, in our opinion, are expected to continue into the foreseeable future, with the real estate market continuing to show gradual increases, paralleling trends in the economy.

- 8 -

SUBJECT MAP

Kern County
Los Angeles County San Bernardino County
Central Antelope
Valley Subarea
South East
Subarea
Rogers Lake
SubareaWest Antelope
Subarea
Willow
Springs
Subarea
(
"N
0 8
Scale in Miles
Legend
Antelope Valley Adjudicated Area
Management Subareas
Antelope Valley Groundwater Basin
! ! California Aqueduct
Figure 1
Antelope Valley
Adjudication Area and
Management Subareas
May 2023
- 9 -

AREA ANALYSIS:

Location – The subject water rights held by Calandri Farms Inc. are within the Antelope Valley Basin, specifically the Central Antelope Valley Subarea , as shown by the referenced map on th e facing page. This area encompasses the southeastern area of Kern County and the northeastern area of Los Angeles County.

Access into the area is provided by surface roads that are both city and county maintained. Major freeway systems include Highway 14 that extends through both Lancaster and Palmdale in a north/south direction. Highway 14 continues to the south and west to the city of Los Angeles, approximately 70 miles to the southwest.

Surrounding Land Use – Municipalities within this subarea of the Antelope Valley include the cities of Palmdale and Lancaster . A wide variety of regional and local commercial services are available to both these cities, as well as tract style residential neighborhoods and lands that are designated for industrial use. The 2023 population estimate for Lancaster is approximately 166,236 residents, which is a slight decline compared to a peak of 170,150 residents in 2021. Palmdale has an estimated 2023 population of 161,404, which is also a slight decline from 165,761 residents in 2021. As noted previously in this report, the mainstay of the local economy for both these communities is dire cted towards the aerospace industries at Air Force Plant No. 42 within the boundaries of the Palmdale Airport and Edwards Air Force Base to the north in Kern County.

There are also substantial agricultural activities taking place in, and around the Palmdal e and Lancaster areas. Grimmway Farms and Bolthouse Farms, two of the largest organic grown vegetable farming operations, farm large blocks of land that are located to the east of Palmdale and Lancaster.

Trend - Overall, area trends are considered stable to gradually upward. There has been some limited new development and sales activity within the light industrial and commercial land markets within both these cities. The agricultural market has been static to gradually upward for several years. Very few farm properties have been bought and sold, which is in part due to the pattern of land ownership that includes several large-scale farming entities that own and farm the majority of the acreage. Limited sales activity also relates to litigation over the adjudication of water rights which was ongoing for several years, before a settlement agreement was negotiated in late 2015.

The agreement quantified the available water in the basin and assigned specific water rights to those water users that participated in the lawsuit. Subsequently, and in today’s marketplace, most agriculture related sales involve the permanent and temporary transfer of adjudicated water rights, excluding land.

Economic trends in the area directed toward real estate in the past have been cyclical with periods of very strong demand and construction, followed by downward trends due to increasing interest rates, employment trends, and an oversupply of housing in con sideration of weakening demand.

As of the date of valuation, overall growth trends in the area are classed as being gradually upward.

Demand for all types of real estate is being influenced by the housing market, which has transitioned from oversupplied conditions in recent years, to a market where new home construction is taking place at a gradual pace. Demand for agricultural use properties has been static during the past several years, which is partially due to changes in the market that are the result of the adjudication of wate r rights. As a result of the adjudication, restrictions placed on groundwater pumping reduced the amount of irrigation water available to farmland located in the basin. There has also been a trend toward acquisition of land parcel s for wind and solar energy development. The majority of the wind energy development has taken place to the northwest of the Antelope Valley between the communities of Rosamond and Tehachapi. Most of the energy that is being produced by the solar farms is being utilized in the Los Angeles Basin.

In conclusion, trends noted in the study area are expected to continue into the foreseeable future. - 10 -

HIGHEST AND BEST USE:

Highest and best use as taken from the A ppraisal Institute publication The Dictionary of Real Estate Appraisal - Sixth Edition, “is the reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value." The four criteria the highest and best use must meet are:

1. Legally permissible

2. Physically possible

3. Financially feasible

4. Maximum productivity

The highest and best use of the adjudicated groundwater rights described herein directly relates to those uses described by the Antelope Valley Groundwater Adjudication Case No. 1 -05-CV- 049053. The judgement, which was signed December 23, 2015, assigned sp ecific water rights to overlying producers that participated in the lawsuit, and also set forth parameters for achieving a sustainable groundwater management program for the Antelope Valley Groundwater Basin, which encompasses approximately 1,580 square miles. Those land owners who did not participate in the adjudication settlement had two years to cease all ground water pumping. Prior to the adjudication agreement, the basin was identified as being in a state of overdraft, which was causing subsidence in some areas.

The highest and best use of the water rights described herein are subject to the specific terms for water use in the basin, set forth by the adjudication judgement. In order to maintain a “safe yield”, both municipal and agriculture water users in the basin we re required to reduce their pumping activity during a seven year “ramp-down” period that began in 2016. At this time, a five member Watermaster board was established under the direction of the court judgement. A water engineering firm was also hired to provide hydrogeological and technical analysis, and to guide administrative functions to fulfill the judgement.

In general, the overlying production rights assigned to each water user were reduced on a gradual basis during this time frame, by as much as 65%, when compared to pre -ramp down pumping rights. A summary of the pre-ramp-down and post-ramp-down production rights for the individual producers is shown by Exhibit 4 of Santa Clara Court Case No. 1-05-CV-049053, a copy of which is included in the Addenda of this report. The adjudicated water right owned by Calandri Farms, Inc. (originally identified as John Calandri, B.J. Calandri, Sunrise Farms) was 3,803 acre feet pre ramp-down; and 1,776 acre feet post ramp-down. Historically, the water available to the Calandri family was utilized in conjunction with their farming operation for the production of onions.

The adjudication judgement established a market for water rights, independent of the real estate asset. In some cases, sellers refuse to transfer the water rights, without the land, given the fact that the land has very limited utility without the water right. Per adjudication agreement, the water right holder can permanently transfer (sell) or temporarily transfer (lease) any, or all of their assigned water rights. The adjudication judgement stipulates that the overlying production rights to pump groundwater may not be transferred out of the basin, which somewhat limits the potential uses and market for the asset. It is also important to note that the judgement allows for the overlying - 11 -

producer to carry over unused water rights from year to year, which can be rented on a year-to- year basis. Any permanent, or temporary water transfers are subject to approval by the watermaster.

In the current marketplace, the highest and best use of the Calandri Farms adjudicated water rights directly relates to demand. The majority of the adjudicated water rights in the Antelope Valley Basin are assigned to municipal and regional water agencies . Water rights are also held by both small and large agricultural operations. These entities represent the most likely users of the water rights, as available for sale or lease in the marketplace. The value of the water right, for sale or lease, directly relates to the intended use of the water. In general, municipal and regional wa ter agencies can pay more for water that is utilized for domestic purposes; however, most agencies are state regulated, which impacts the amount that can be charged to the consumer. The financial feasibility to acquire water by public agencies is also influenced by the substantial cost associated with pumping, transporting, and water treatment. Agriculture is also a viable use for groundwater in the Antelope Valley Basin, which is evident by the substantial amount of cultivated agricultural acreage in the area. Climate and soil conditions in the Antelope Valley are most conducive to growing row crops that include alfa lfa, grain and in some cases organically grown vegetables.

Water requirements for these type crops are substantial, and can range between 3 - 4 AF per acre annually. In the current marketplace, substantial increases in the cost of fuel and labor are having an impact on the cost to grow all types of crops. In order to maintain a reasonable profit on crops that are grown in this area, the cost of water available for irrigation is a key factor. Furthermore, the restriction against transferring the water rights out of the Antelope Valley Basin has an impact on prices, which relates to a limited market.

In conclusion, most municipal and regional water agencies in the Antelope Valley Basin were involved in the adjudication of water rights and have sufficient water to serve their existing consumer base. It is important to note , however, that future expansion of the population base in the area will likely stimulate demand for new housing which will create a need for these agencies to acquire additional water rights. At this time, demand for water available from municipal uses is considered to be relatively static, given the fact that the population base in both the cities of Lancaster and Palmdale has shown only small increases in recent years. It is important to note that future expansion of the population in the basin will result in increased demand for water available for municipal uses, and will likely stimulate a sell off of water rights held by land owners or farming entities that are located in the basin. A substantial amount of the adjudicated water rights in the basin are held by long standing farming entities, which have had to reduce the amount of acreage being farmed. Compliance with the ramp-down of water use mandated by the adjudication judgement has resulted in a reduction of irrigated farmland in the basin . It is highly unlikely that there will be an expansion of land utilized for agriculture production in the basin in the foreseeable future, given that the cost to acquire water in today’s marketplace has a direct impact on the financial feasibility of farming.

In the current marketplace there has been increasing interest for temporary transfers of overlying production and carry over water rights on a year-to-year basis. This has provided the opportunity for both municipal and agriculture land users to fulfil their water needs on a short term basis.

Prices for temporary and carryover water rights have been subject to substantial annual increases, which is impacting the financial feasibility to continue fulfilling a water user’s needs in this - 12 -

manner. Under the terms of the adjudication agreement, carryover water transfers will be allowed to take place on a free market basis for a period of 10 years before the water right holder will be required to enter into a storage agreement with the watermaster , and the water will no longer be available for exchange on the open market. Carryover water exchanges will be controlled by the watermaster and will be subject to administrative fees to accommodate the transfer. In the current marketplace, most prope rty owners that have adjudicated water rights that they are not fully utilizing are taking advantage of the ability to profit from free market temporary exchanges of water rights, which has resulted in limited motivation to sell water rights on a permanent basis. In some cases, parties have entered the market for investment purposes. Recent sales of permanent water rights have been very limited, and typically invol ve smaller transfers of less than 100 acre feet. Sales activity with respect to permanent water right transfers is anticipated to increase over the next several years as the cost to acquire temporary carryover water rights increases.

- 13 -

SUMMARY OF ANALYSIS AND VALUATION:

In this study, the Cost, Income, and Sales Comparison Approaches to value have been considered.

Each is defined as follows:

Cost Approach - That approach in appraisal analysis which is based on the proposition that the informed purchaser would pay no more than the cost of produc ing a substitute property with the same utility as the subject property. It is particularly applicable when the property being appraised involves relative ly new improvements which represent the highest and best use of the land or when relatively unique or specialized improvements are located on the site and for which there exist no comparable properties on the market.

Income Approach - That procedure in appraisal analysis which converts anticipated benefits (dollar income or amenities) to be derived from the owner ship of property into a value opinion. The Income Approach is widely applied in appraising income -producing properties. Anticipated future income and/or reversions are discounted to a present worth figure through the capitalization process.

Sales Comparison Approach - That approach in appraisal analysis which is based on the proposition that an informed purchaser would pay no more for a property than the cost of acquiring an existing property with the same utility. This approach is applicable when an active market p rovides sufficient quantities of reliable data which can be verified from authoritative sources. The Sales Comparison Approach is relatively unreli able in an inactive market or in estimating the value of properties for which no real comparable sales data are available. It is also questionable when sales data cannot be verified with principals to the transac tion. This is a lso referred to as the Market Comparison or Market Data Approach.

Due to the characteristics of the interest valued in this appraisal, the Cost and Income Approaches were not applicable and were not utilized. The omission of th ese approaches to value do es not affect the reliability of the conclusion derived herein.

The market for permanent sales or temporary transfers of adjudicated water rights in the Antelope Valley is in its early stages of establishing itself, subsequent to the adjudication judgement in late 2015. A detailed discussion of the Sales Comparison Approach and the market data utilized in support of establishing a fair market value of the subject water rights is shown on the following pages.
- 14 -

Sales Comparison Approach – Market data with respect to permanent water right transfers have been investigated and analyzed. A summary of the market data, analysis, and discussion is as follows:

Summary of Market Data - Water Rights Sales
Sale
No.

Sale
Date
Grantor/
Grantee
Document No./
Resolution No.

Location/
Assessor’s Parcel No.

Size
(Acres)
Sales
Price
Price/Acre
Adjudicated
Water
Right
(Acre Feet)
Price/
Acre Ft
Adjudicated
Water
Right
1 03/08/16 Red Dawn Suntower,
LLC/ Rosamond
Community Services
#281380
20301 W. Avenue B8
Lancaster, CA
3256-006-012, 013 & 019
210.0 $975,000
$4,643

150 AF $6,500/AF
(Included
Land)
2 9/27/17 FS Land Holding
Co. LLC/ Diamond
Farming Co.
#132232
N/A
Antelope Valley Basin
(Water rights only)
N/A $1,627,500
N/A*
217 AF $7,500/AF
3 9/27/17 FS Land Holding
Co. LLC/
Grimmway
Enterprises
#132231
N/A
Antelope Valley Basin
(Water rights only)
N/A $1,447,500
N/A*
193 AF $7,500/AF
4 9/27/17 FS Land Holding
Co. LLC/ Crystal
Organic Farms LLC
#132230
N/A
Antelope Valley Basin
(Water rights only)
N/A $1,425,000
N/A*
190 AF $7,500/AF
5 04/13/21 Nebeker/
W.D.S. California II
LLC #69682
N/A
Antelope Valley Basin
(Water rights only)
N/A $11,000,000
N/A*

1,775 AF $6,197/AF

6 01/04/22 Mojave Public
Utility District/
City of Tehachapi
#98892
N/A
Tehachapi Basin
(Water rights only)
N/A $562,500
N/A*
75 AF $7,500/AF
7 02/23/22 Van Dam/
Rosamond CSD
#R-22-13
N/A
Antelope Valley Basin
(Water rights only)
N/A $3,150,000
N/A*
350 AF $9,000
8 03/21/22

Healey Enterprises
Inc/Antelope Valley
East Kern Water
Agency
#338581
Healy Farms
16700 Lancaster Road
Lancaster, CA
(43 APN’s)
2,227
Acres
$11,000,000
$4,939
700 AF
Permanent
4,200 AF
Carryover
$13,194 AF
(Permanent
Allocation
includes
land)
9 05/04/22 Miner/
Rosamond CSD
#R-22-03
N/A
Antelope Valley Basin
(Water rights only)
N/A $11,932,000
N/A*

999 AF
Permanent
5,084 AF
Carryover
$9,907/AF
(Permanent
Allocation)
10 06/02/22 Radcast Investments/
Rosamond CSD
#675636
West line 60th Street,
just north of Avenue E
Los Angeles County
3201-003-005 & 006;
3201-004-007
274.84
Acres
$2,470,000
$8,987
232.56 AF
Permanent
1,395.36 AF
Carryover
$8,112 AF
(Permanent
Allocation
includes
land)
- 15 -

Summary of Market Data - Water Rights Sales
Sale
No.

Sale
Date
Grantor/
Grantee
Document No./
Resolution No.

Location/
Assessor’s Parcel No.

Size
(Acres)
Sales
Price
Price/Acre
Adjudicated
Water
Right
(Acre Feet)
Price/
Acre Ft
Adjudicated
Water
Right
11 04/14/23 R & M Ranch, Inc./
RTS Orchards LLC/
#275248
11367 E Avenue J, Lancaster,
CA, Los Angeles County
3368-001-026
233.93 $5,402,050
$23,093
686 AF $7,875
(Permanent
Allocation
includes
land)
12 05/01/24 Co. Sanitation
District No. 14 of
Los Angeles/ City of
Lancaster
#R-24-24
N/A
Antelope Valley Basin
(Water rights only)
N/A $375,000
N/A*
50 AF $7,500/AF
13 07/18/24 Jovadi/Silvestre II
Assoc LLC
#563055
SW corner E. Avenue J and
150th St East
Los Angeles County
3361-001-058

77.68 $600,000
$7,724

22.0 AF $27,272/AF
(Permanent
Allocation
includes
land)
14 12/10/24 Van Dam/Calandri
Farms
#R-24-60
N/A
Antelope Valley Basin
(Water rights only)
N/A $1,297,500±
N/A*

86.5 AF $15,000±
15 12/10/24 Van Dam/California
Compaction Corp.
#R-24-61
N/A
Antelope Valley Basin
(Water rights only)
N/A $1,200,000±
N/A*

80.0 AF $15,000±
*No real estate transferred, water right only

Market data with respect to sales or listings of permanent water right transfers in the Antelope Valley Basin has been limited, given the fact that the adjudication agreement has only been in place for nine years. Most water right holders in the basin that are interested in selling their water rights have had a “wait and see” attitude as far as allowing the market to establish itself, before considering to sell. Those water right holders that are not fully utilizing their water rights have been able to profit through temporary water right transfers, which generally includes a lease of their water rights on an annual basi s. While the process to oversee and accommodate water transfers by the Watermaster was not finalized until April 25 th of 2018, Sales 1 through 4 took place subsequent to adjudication, and prior to this time frame. No other permanent water transfers took place in the basin until April of 2021, shown as Sale 5. The water rights were offered on the market for almost four years at an asking price of $10,000 per acre foot, with very little interest.

The April 2021 sale represents a purchase by an investor who has other water rights in the basin.

Both buyer and seller were considered to be knowledgeable parties in the transaction. Sale 9 was also advertised on the market for over three years, including both the land and water rights. The underlying land sold in September of 2020 to a solar developer. A sale of the water rights was consummated in May of 2022. The buyer is a municipal water agency that is located in a northern portion of the Antelope Valley Basin, also acquiring water right Sales 1, 7 and 10. Subsequent to adjudication the municipal water agency (Rosamond Community Services District) was left without sufficient permanent water rights to serve their constituents, and their obligation to fulfill the district’s water needs was a motivating factor in each of these purchase transactions.

Sale 8 was also acquired by a large-scale local water agency who has substantial adjudicated water rights in the basin, in addition to contracts to receive water through the State Water Project. The - 16 -

buyer, Antelope Valley East Kern Water Agency, has a pipeline that extends through the sale property and has future plans to create a water bank, utilizing both the land and acquired water rights. This was a motivating factor to purchase the property, along with the water rights. Sale 12 was acquired by a municipal agency for use at their public soccer complex. The seller is a local sanitation district that owns a substantial amount of water rights in the basin.

Sales 11 – 15 represent recent purchases of permanent water rights in the basin. The higher price paid per acre foot for Sale 13 included the transfer of the real estate, which had been utilized as a nursery in the past and included an older residential structure. Sale 11 also included the transfer of real estate, but the water rights were applied to a nearby pistachio orchard owned by the buyer.

The land had previously been utilized to farm row crops, and included several older farmstead buildings, which was attributed little to no value. The price paid for the permanent water rights included in Sales 14 and 15 was reported by the seller at around $15,000/AF. In each case, the price paid was influenced upward by the small amount of water rights that were transferred.

The sales took place during the time frame of March 2016 through December 2024. Based on the market data analyzed, and consideration given to the motivation of the buyers and sellers, there is insufficient information to recognize any change, or support for a time adjustment during the time frame in which the sales took place.

Financing can be an influencing factor on the price paid for all types of real estate and/or water interests. Each of the sales investigated included all cash to the seller. No special financing or seller concessions were reported.

Analysis of the market data is based on the price per acre foot of adjudicated water right transferred, or available. It is apparent that there is a wide range in price per acre foot, when comparing the consummated price for the sales. It is important to note that the market for all types of real estate, as well as intangible assets such as water rights , is driven by supply and demand.

The adjudication judgement allows for water right holders that have excess or unused water rights to be transferred (leased) on a temporary, year to year basis. This has provided the opportunity for both municipal and agricultural land users to fulfil their water needs on a short term basis. Under the terms of the adjudication agreement, carryover water transfers will be allowed to take place on a free market basis for a period of ten years. At this time th e producer will be required to enter into a storage agreement with the watermaster, and temporary water exchanges will be subject to additional fees. In the current market place, most property owners that have water rights which they are not fully utilizing, are taking advantage of the ability to profit from free market temporary exchanges of water rights . This has resulted in the limited motivation to sell water rights on a permanent basis.

Most of the sales that have taken place during the past few years have been influenced by highly motivated buyers, including the Rosamond Community Services District who was the Grantee for Sales 1, 7, 9 and 10. As noted previously, subsequent to the adjudication judgement, the agency was left with insufficient water to service their existing customer base. During the past six years the district has utilized temporary water purchases to fulfil their water needs. With the ramp down period ending, the dist rict became highly motivated to fulfil their water right needs through purchases of permanent water rights, reflected by Sales 7, 9 and 10. Sales 9 and 10 included carry over or temporary water rights that were in addition to the permanent water rights acquired. The temporary, or carry over water rights in these sales were allocated at a rate of $418/AF, which equates to 80% of the 2022 replacement cost charged by the watermaster. The allocated price per acre foot for the permanent water rights for these sales range from $8,112 per acre foot to $9,907 per acre foot. In each case the sellers were aware of the buyer’s immediate, or near term needs to acquire these water rights, and the allocated prices paid for the permanent water purchase were highly influenced by the buyer’s motivation to complete these transactions. - 17 -

Buyer motivation was also an influencing factor for Sale 8, which included the purchase of the underlying land, in addition to both permanent and carry over water rights. The buyer, Antelope Valley East Kern Water Agency, has substantial water interests in the basin, including contracts for S tate Water, delivered into the area through the California Aqueduct. The district has an existing pipeline that connects to the sale property, and intends to develop the land to a ground water banking facility in the future.

Given the limited market data with respect to sales of adjudicated groundwater rights in the Antelope Valley Basin, market data has been considered with respect to sales of permanent groundwater rights in other nearby adjudicated basins. Sale 6 includes a permanent water right purchase in the Tehachapi Basin, approximately 25 miles to the northwest. The water right transfer represents a negotiated sale between two municipal water districts. The seller, Mojave Public Utility District acquired the water ri ght through their land ownership, upon adjudication of the Tehachapi Basin. Like the Antelope Valley Basin, the water cannot be transferred out of the Tehachapi Basin, and the water right had no benefit to the Mojave Utility District, which is located 15 to 20 miles to the east. The sale represents a negotiated purchase of the water rights between the two public agencies. The price paid per acre foot is competitive with other smaller water right transfers in the Tehachapi Basin and is considered to be reflective of a fair market value.

Other market data considered for this analysis includes sales of permanent ground water rights in the Mojave Basin, located to the east of Antelope Valley Basin. The water rights in the Mojave Basin were adjudicated in the 1990’s, and similar to the Antelope Valley Basin, the area is served by surface water available from the State Water Project. Information available from public record indicates that there were numerous temporary and permanent water transfers during the 2018 – 2020 water years, with prices paid per acre foot for permanent water rights ranging from a low of $500/AF to a high of $5,000/AF. Most of the lower prices paid per acre foot were for water rights that were acquired in rural areas of the basin, where the demand for groundwater is not as strong when compared to areas where there is a large urban influence. There were seven permanent water right transfers in the Alto sub basin, which encompasses urban areas of Adelanto, Hesperia and Victorville. The permanent wat er right transfers ranged from 10 AF to 200 AF. The prices paid per acre foot ranged from $4,750/AF to a high of $5,000/AF. An analysis of the water right sales indicate the p er acre foot prices in 2018 are competitive with more recent year transfers, which reflects the stability of the market in this area and the fact that the adjudication process took place over 20 years ago.

It is evident that the water market in the Antelope Valley Basin is in the early years of establishing itself, subsequent to adjudication in late 2015. It is also evident that the initial prices being paid for adjudicated water rights in Antelope Valley are significantly higher, when compared to those purchases that have taken place in the Mojave Basin. The most likely reason for the difference is the higher level of urbanization in the Antelope Valley, when compared to the Mojave Basin. In most cases prices paid per acre foot shown by the market data are at a level that severely limits the financial feasibility to acquire water rights for an agriculture use. This is reflected by the fact that there has been no new agricultural land development in the basin during recent years, and it is likely that there will be no new agricultural land development in this area in the foreseeable future.

Sales 1, 5, 7, 8 and 9 include water rights associated with land that was previously utilized for agriculture. In each case the water rights were acquired for an urban related use. Sales 11 and 13 sold with real estate in addition to the water rights. Both properties included building structures, including an older home, which appeared to contribute little to no value. The farmland comprising Sale 11 had previously been planted to row crops. The buyer purchased the water rights in order to transfer them to other farmland holdings. The buyer likely had no use for the land, but was obligated to purchase it along with the water rights, which may have influenced the price paid per acre foot downward. The higher price paid per acre foot for Sale 13 may have been influenced by the smaller parcel size and small amount of water rights. - 18 -

It is important to note that there is still a substantial amount of adjudicated water rights in the Antelope Valley Basin that are held by larger scale farming operations, which in most cases have no intentions of discontinuing this use in the near term. Sale 5 was acquired by a larger scale investor, and the seller appeared to be somewhat motivated, after marketing the property for several years. Sale 15 was acquired by a construction company. As noted, some of the recent sales of water rights shown in t he pr eceding table were acquired by public agencies, including the Rosamond Community Services District, wh o was highly motivated to fulfill their shortfall of water rights due to the basin adjudication. The buyer for Sale 12 was a public agency that acquired the water rights for use at a public soccer complex. The seller owns a substantial amount of water rights in the basin.

In an overall analysis of the market data, it is evident that the market for water rights in the Antelope Valley Basin is in the early years of establishing itself, with most of the permanent water right sales involving highly motivated buyers. It is appa rent that there is a substantial amount of permanent water rights that are not being fully utilized in the basin given the amount of temporary water right transfers that have taken place during the past few years. Continued increases in prices being paid for temporary water rights will likely have an influence on permanent water right transfers over the next several years. With the amount of water rights available in the basin, market conditions are anticipated to be competitive.

Consideration is given to the current agreement to purchase the subject water rights. The buyer (City of Lancaster) is a municipal water agency looking to acquire additional water rights (500 AF) for future development purposes as the population base increases in the coming years. The agreed upon purchase price is $10,000 per acre foot. While some of the recent water right sales have ranged as high as $15,000/AF, it is important to note that most of the transfers were less than 100 acre feet. There is market evidence that permanent transfers of larger quantities of water rights have been consummated at a significantly lower value per acre foot. Based on this analysis, t he price per acre foot is con sidered reasonable and supported by the range set forth by the sales, as well as marketing comments from the buyers, sellers and brokers that were involved in the transactions. In conclusion, after analysis and comparison of the market data, a comparative unit value of $10,000 per acre foot is considered reasonable for the 500 AF of adjudicated water rights that are held by Calandri Farms Inc. in the Antelope Valley Basin. The indicated value of the water right is calculated as follows:

500 AF @ $10,000/AF = $5,000,000

Value Indicated by the Sales Comparison Approach = $5,000,000

- 19 -

FAIR MARKET RENTAL VALUE:

As part of this assignment, the Client has requested that the appraiser provide a fair market rental value estimate for a temporary transfer of the water right asset described herein. As noted previously in this report, information available from the Antelope Valley Basin Water master indicates that adjudicated water rights held by the overlying producers in the basin are transferrable on a permanent or temporary basis. The temporary basis refers to a lease of the water right on an annual basis, which requires formal application and approval by the Water master Board of Directors. Guidelines for all water transfers in the basin were established in early 2018, and subsequent to this time there has been an active market with respect to temporary transfers of both overlying production and carryover water rights.

These type transfers must be renewed on a year to year basis. Temporary transfers provide the opportunity for both municipal and agricultural land users to fulfill their water needs on a short term basis. Under the terms of the adjudication judgement, overlying production right water and carryover temporary water transfers will be allowed to take place on a free market basis for a period of ten years. At this time the producer will be required to enter into a storage agreement with the Watermaster, in order to maintain their right to utilize the carry over water. In the current market place most property owners that have water rights that are not being fully utilized are taking advantage of the ability to profit from the free market temporary exchanges of water rights. As noted, all water right exchanges, temporary or permanent, must be approved by the Water master.

Information available through public indicate s that there have been multiple temporary water exchanges that have taken place thus far in the 2025 water year. A summary of these transactions is outlined in the following table.

Temporary Water Right Transfers
Transferor Transferee Transfer
Date
Type of
Transfer
Amount
Water
(AF)
Amount
$/AF
% of
Replacement
Water Cost
Selak RTS Orchards
LLC 03/26/25 Temporary
COW 75 $509 80%
Selak RTS Orchards
LLC 03/26/25 Temporary
COW 75 $509 80%
Gorridno
Resources
LLC
RTS Orchards
LLC 03/26/25 Temporary
COW 629 $509 80%
COW – Carryover water

Information pertaining to the amount of water transferred and the parties involved in each of these transactions was obtained through public record on the Water master’s website, however, the Watermaster is not required to disclose the agreed upon dollar amount of the water transfer, which is considered to be private information between the transferor and transferee. Information shown in the preceding table was confirmed with a party directly involved in each of these transactions.

In each case the negotiated per acre foot rental rate directly correlates with the annual cost associated with acquiring replacement water from the Antelope Valley Watermaster. It is - 20 -

important to note that the Watermaster acquires water from the Antelope Valley East Kern Water Agency (AVEK), which has a contract with the State Water Project.

Replacement water assessments are charged by the Watermaster to pay for the cost incurred to buy and recharge replacement water, and are set at the beginning of each year. The purpose of the replacement water assessment is to ensure that each party may fully exercise their production right while keeping the basin in hydrologic balance. The Watermaster shall impose a replacement water assessment on any producer whose production of ground water is more than the sum of the producer’s rights to pump ground water during any given calendar year. A production right water that has not been utilized within the calendar year then becomes carryover water. As noted, replacement water costs are based on the cost for the Antelope Valley East Kern Water Agency to acquire water that is imported into the basin from the State Water Project and is subject to annual fluctuations, shown in the following table.

Replacement Water Rate
Year Cost Per Acre Foot
2016 - 2018 $415
2019 $451
2020 $486
2021 $498
2022 $523
2023 $563
2024 $607
2025 $636

Interviews with local participants in the marketplace indicate that the going rate for private temporary water transfers (annual leases) are typically negotiated based on a 20 percent discount from the current year replacement water rate set forth by the Water master, which coincides with the temporary water transfers shown in the preceding table.

As the water market in the Antelope Valley Basin continues to establish itself, it is anticipated that there will be a gradual increase in demand for temporary water transfers, or leases of ground water rights. It is likely that there will continue to be a direct correlation between market prices paid for temporary water purchases and the annual cost of replacement water available through the Watermaster. However, it is possible that continued increases in replacement water costs could result in a higher discount in market negotiated water transfer rates in order to maintain the cost effectiveness to the end user, especially those that are acquiring water for agriculture related uses.

In conclusion, it is our opinion, based on the market data analyzed, that the fair market lease rate for a temporary transfer of all, or portions, of the subject adjudicated water production rights is $509/AF on an annual basis.

Based on the information available at this time, it is reasonable to assume that the fair market lease rate for private temporary water transfers will continue to be negotiated based on a 20 percent discount from the replacement water rate. Annual increases for replacement water are expected to continue in the foreseeable future . As the replacement water rate continues to increase, the fair market lease rate for temporary water rights is expected to increase as well, commensurate with the market established 20% discount.

- 21 -

Conclusion and Final Opinion of Value -

Value Indicated by the Cost Approach N/A

Value Indicated by the Income Approach N/A

Value Indicated by the Sales Comparison Approach $5,000,000

A Sales Comparison Approach can provide a reliable indication of value when there is adequate market data available in support of the interest being value d. In this case, the interest is an adjudicated water right that can be bought and sold in the marketplace. It is important to note that the market for this asset in the Antelope Valley Basin is slowly establishing itself, subsequent to the adjudication judgement in late 2015. While the market data analyzed in support of a value conclusion is somewhat limited, it is considered to be reflective of demand in the marketplace at this time.

In conclusion and after careful consideration of the data outlined in this report, it is our opinion that the market value of the water right appraised in its present condition, as of May 8, 2025 is the sum of:

FIVE MILLION DOLLARS
($5,000,000)

Based on the market data analyzed in this report, and consideration given to the concluded value derived herein, it is our opinion that a reasonable market exposure time for a permanent sale of the subject water rights, would fall within a range of 12 to 24 months.

MERRIMAN HURST
& A S S O C I A T E S I N C.

Real Estate Appraisers & Consultants

Randy K. Merriman, MAI, SRA 140 S. Montclair St., Suite C David E. Hurst, MAI Bakersfield, CA 93309
Christine Johnson, Appraiser (661) 832-0322
(661) 832-3417 FAX

CURRICULUM VITAE for
RANDY K. MERRIMAN

Real Estate Appraiser, January of 2010 to Present.

President of Merriman Hurst & Associates, Inc., Real Estate Appraisers and Consultants, Bakersfield, California.

Real Estate Appraiser, August of 2009 - December 2009.

President of Karpe Merriman Inc., Real Estate Appraisers and Consultants, Bakersfield, California.

Real Estate Appraiser, March of 1986 - July of 2009.

Vice President of Karpe Fisher Merriman Inc., Real Estate Appraisers and Consultants, Bakersfield, California.

STATE OF CALIFORNIA

OFFICE OF REAL ESTATE APPRAISERS

"Certified General Real Estate Appraiser", OREA Appraiser I.D. Number AG006809. Expires December 21, 20 26.

PROFESSIONAL AFFILIATIONS

Awarded MAI designation, April 1997 - Appraisal Institute.

Awarded Senior Residential Appraiser Designation (SRA), September, 1992 - Appraisal Institute.

Candidate for ARA, Accredited Rural Appraiser Designation - American Society Farm Managers and Rural Appraisers.

Past President, Bakersfield Chapter of the Appraisal Institute, 1993 and 2003.

EDUCATIONAL ACTIVITIES

College Courses:

Real Estate Appraisal, Bakersfield Community College, Bakersfield, California.

Advanced Real Estate Appraisal, Bakersfield Community College, Bakersfield, California.

Appraisal Institute:

Appraisal Curriculum Overview Course, Bakersfield, October 21-22, 2010 Advanced Applications, Course 550, Montrose, California, July 16 - 22, 1995 Advanced Income Capitalization, Course 510, Fresno, California, February 24 - 27 and March 4 - 6, 1993 Capitalization Theory and Technique, Part A, San Jose, California, July 5 - 11, 1992

Society of Real Estate Appraisers:

Course 102 - Applied Residential Property Valuation, Los Angeles, California, April 22 - May 2, 1987 Course 101 - Introduction to Appraising Real Property, Challenge Examination, Bakersfield, California, October 17, 1987
2 American Society of Farm Managers and Rural Appraisers:

Course A-15 - Appraisal Report Writing, Modesto, California, May 2 - 4, 1996 Course A-25 - Eminent Domain, Shell Beach, California, October 5 - 7, 1993 Course A-30 - Advanced Rural Appraisal, Fresno, California, July 9 - 15, 1989 Course A-20 - Principles of Rural Appraisal, Phoenix, Arizona, June 19 - 25, 1988

Seminars:

Uniform Standards of Professional Appraisal Practice, (USPAP 2024-2025), McKissock

Laws and Regulations for California Appraisers, November 20, 2024

Best in Business Ethics ASFMRA, California Chapter, September 18, 2023

Appraising Agriculture Lands in Transition, ASFMRA, September 9, 2022

Appraisal of Water Rights, ASFMRA, September 8, 2022

Business Practice & Ethics, AI Course, September 7, 2022

Complex Litigation Case Studies, Appraisal Institute, June 11-12, 2018

Appraisal of Self Storage Facilities, October 30, 2016

Valuation of Detrimental Conditions, AI Central California Chapter, April 7, 2009

Scope of Work, AI Central California Chapter, January 22, 2007

Federal Land Acquisitions (Yellow Book Seminar), AI, Sacramento Sierra Chapter, October 10-11, 2002

Highest & Best Use Applications, AI, Bakersfield Chapter, June 6, 2002

Cold storage Facility Valuation, ASFMRA, California Chapter, April 15-16, 2002

Conservation Easement Seminar, ASFMRA, October 3-4, 2000

Appraisal of Non-Conforming Uses, AI, Bakersfield Chapter, May 5, 2000

The Appraisal of Vineyards & Wineries Seminar, AI, S. California Chapter No. 5, August 12, 1998

Real Estate Appraiser Expert Witness Seminar, AI, Bakersfield Chapter No. 75, June 26, 1998

Federal and State Laws and Regulations Workshop, AI, Bakersfield, Chapter No. 75, October 10, 1997

Easement Valuation, AIREA, Los Angeles Chapter, No. 5, January 16, 1990

Litigation Seminar, AIREA, Los Angeles Chapter, No. 5, December 8, 1989

COURT QUALIFICATIONS

Testified as an expert witness in:

Superior Court of Kern County, California.
3 SCOPE OF EXPERIENCE

Type of Properties Appraised (Partial List):

Agriculture: Precision row crops, rangeland, citrus groves, orchards, vineyards and cold storage/packing facilities

Commercial: Retail store buildings, motels, general and professional office buildings, service stations, and drive-ins

Eminent Domain: Full and partial acquisitions, sewer line right -of-ways, highway right -of-ways, and street widening matters

Industrial: Warehousing and manufacturing facilities

Residential: Single family dwellings, condominiums, and multi-family projects

Special Purpose: Nursing and convalescent homes

Vacant Land: Residential and commercial lots, subdivision acreage, desert, and mountain acreage.

Appraised Property in:

Fresno County Merced County
Inyo County Mono County
Kern County San Luis Obispo County
Kings County Santa Barbara County
Los Angeles County Tulare County
Ventura County

APPRAISALS COMPLETED FOR PUBLIC AGENCIES

U.S. Government: County of Kern:

Department of Navy Public Works Department, Roads
Federal Deposit Insurance Corporation Housing Authority USDA Farm Service Kern High School District
Bureau of Land Management Kern Economic Development Dept.

Kern County General Services
Kern County Superintendent of Schools
State:

California Department of Fish & Game
California Department of Transportation (CalTrans)
California Department of Parks & Recreation
California Department of Education

Municipalities: Lending Institutions:

City of Bakersfield Bank of America
City of Delano Bank of the West
City of Los Angeles Bank of the Sierra
City of McFarland California Bank and Trust
City of Shafter California Federal Bank
City of Wasco Citizens Business Bank
Glendale Federal Bank
Manulife Ag Investments
Imperial Bank
Met Life Ag Investments
Mission Bank
Rabobank
Tri Counties Bank
United Security Bank
Wells Fargo Bank
West America Bank
Zion First National Bank

MERRIMAN HURST
& A S S O C I A T E S I N C.

Real Estate Appraisers & Consultants
Randy K. Merriman, MAI, SRA 140 S. Montclair St., Suite C David E. Hurst, MAI Bakersfield, CA 93309
Christine Johnson, Appraiser (661) 832-0322
(661) 832-3417 FAX

CURRICULUM VITAE for
CHRISTINE L. JOHNSON

Real Estate Appraiser, 2019 to present, Merriman Hurst & Associates, Inc., Real Estate Appraisers and Consultants, Bakersfield, California.

Administrative Assistant, 2015 – 2019, Merriman Hurst & Associates, Inc., Real Estate Appraisers and Consultants, Bakersfield, California.

STATE OF CALIFORNIA

BUREAU OF REAL ESTATE APPRAISERS

Certified General Real Estate Appraiser, BREA Appraiser I.D. Number AG3011207. Expires April 6, 2027.

PROFESSIONAL AFFILIATIONS
Associate Member, American Society of Farm Managers and Rural Appraisers Chair, Kern County Chapter of the California Young Farmers & Ranchers, 2024 Executive Committee Member, Kern County Chapter of the California Young Farmers & Ranchers, 2022 - 2025

EDUCATION
College
Bachelor of Science Degree, Business Administration, The Master’s University, Santa Clarita, CA – Graduated 2014 Bakersfield College, Bakersfield, CA, 2010-2011

Appraisal Institute
Basic Appraisal Principles, 2018
Basic Appraisal Procedures, 2019
General Appraiser Cost Approach, 2020
General Appraiser Income Approach Parts 1 & 2, 2019, 2020 General Appraiser Market Analysis and Highest and Best Use, 2022 General Appraiser Report Writing and Case Studies, 2022 General Appraiser Sales Comparison Approach, 2020
Statistics, Modeling and Finance, 2021
Uniform Standards of Professional Appraisal Practice 15 Hours (USPAP), 2019

American Society of Farm Managers & Rural Appraisers
Farmer Mac Appraisal Requirements, February, 2024
Integrated Approaches to Value, August, 2024

McKissock
Laws and Regulations for California Appraisers, 2022
Uniform Standards of Professional Appraisal Practice, 7 Hour Update (USPAP), 2025

The International Right of Way Association
The Valuation of Partial Acquisitions Course 421, September, 2023

Seminars
American Society of Farm Managers & Rural Appraisers Spring Outlook Conference, 2021, 2022, 2023, 2024 American Society of Farm Managers & Rural Appraisers, Appraisal of Water Rights Webinar, 2020 American Society of Farm Managers & Rural Appraisers, Ag Trade & China Webinar, 2020 Multifamily Market Update, Appraisal Institute Bakersfield Chapter, 2019, 2020 Water Association of Kern County, “Water, Fire, Power” Seminar, 2019 Women’s Initiative Committee, Appraisal Institute Northern CA Chapter, Various Webinars, 2021 - 2024

SCOPE OF EXPERIENCE

Types of Properties Appraised (Partial List):

Agriculture: Precision row crops, almond and pistachio orchards, citrus groves and vineyards

Eminent Domain: Full and partial acquisitions , road widening projects, sewer pipeline projects

Residential: Single family dwellings

Vacant Land: Residential, industrial and commercial lots

Appraised Property in:

Kern County
Tulare County

Page 1 of 3 ends

TRANSFER REQUEST FORM

ANTELOPE VALLEY WATERMASTER
Please include an application fee according to the fee schedule posted on the Watermaster website:
https://avwatermaster.net. Make check out to: Antelope Valley Watermaster Mail to: Antelope Valley Watermaster, 5022 West Avenue N, Suite 102, Box 195, Palmdale, CA 93551 OR email to:
[email protected]
Call Watermaster Administrative staff at 661-234-8233 with questions. Transfer Requests review could take up to 60 days.

PERMANENT TRANSFER? Yes or No TEMPORARY/ONE-TIME TRANSFER? Yes or No Permanent Amount acre-feet Temporary/One -time Amount acre-feet

IF TRANSFER DUE TO CHANGE IN LAND OWNERSHIP, PLEASE ATTACH DEED AS PROOF OF SALE OR A PRELIMINARY TITLE REPORT
Date R equested
If Temporary, Calendar Year(s) to be Used
Which Party will be paying the annual Administrative Assessment(s) for the transferred water? Is either Party a member of the Antelope Valley United Mutuals Group? Yes or No TRANSFER FROM (SELLER/TRANSFEROR):

Name Street Address
City State Zip Code
Phone email
APN#(s) where transfer originates (i.e., production well location(s))

APN#(s) (or water supply service area) where groundwater was used

TRANSFER TO (BUYER/TRANSFEREE):

Name Street Address
City State Zip Code
Phone email
Note: Legal notices under the Judgment will be sent to the above email address. You are required to keep this information up to date. Please notify the Watermaster of any changes.

APN#(s) (or water supply service area) where transfer will be pumped and used

Purpose of Transfer:
 Permanent Transfer resulting from Property Sale/Transfer [PLEASE ATTACH DEED OR PRELIMINARY TITLE REPORT]  Additional Source of Water
 Other, explain
Water is to be Transferred from/to: (transferred water retains its original water type):
 Current Year Production Right: amount acre-feet
 Carry Over Water: amount acre-feet
 Specified Year(s) ______________________
 Oldest Water Available
 Storage: amount acre-feet
 Other, explain

Page 2 of 3 ends

(Transferred water retains its original water type – e.g., transferred Carry Over Water remains Carry Over water)

WATER QUALITY AND WATER LEVELS (not required if transfer is in association of change of land ownership) Are Parties aware of any water quality issues that exist in either the area transferred from or to? Ye s or No If yes, please explain:

Please provide groundwater elevations in the areas affected by the transfer.

Are Parties aware of any water level issues that exist in either the area transferred from or to? Yes or No If yes, please explain:

MAPS
Please include a map of the area where the water was used by the Transferor and a map of the area where the water is intended to be used by the Transferee. Include locations of production facilities involved in or affected by the Transfer. This map can include all possible locations of past source and use and future source and use.

SECURITY IN TEREST OR LIENHOLDERS
For P ermanent Transfers, please provide a list of all parties with a recorded security interest, deed of trust or a lien in such real property or in crops growing or to be grown thereon, and attach copies of written notices to such parties and copies of return receipts.

The transfer shall be conditioned upon:

1. Transferee shall succeed to the right of Transferor under the terms of the Judgment.

2. Transferee shall only use Transferred waters for reasonable and beneficial uses.

3. Any Transferee not already a Party to the Judgment must intervene and become a Party to the Judgment.

4. All applicable assessments (Administrative and Balance) and transfer fees are paid in full.

5. If the Watermaster determines that the transfer has resulted in a material injury, the parties will be required to work with the Watermaster Board to mitigate that material injury.

6. For Permanent Transfers, the Parties agree to duly record in the office of the appropriate County Recorder a document reflecting the Permanent Transfer reflected in this Transfer Form.

7. The Transfer Request Form must bear the notarized signatures of both the transferor and the transferee.

8. The Seller/Transferor must be the owner of the water rights pursuant to the Judgment. No Party may transfer water rights held pursuant to a lease agreement or other private contract with the actual water rights owner.

Page 3 of 3 ends

To be completed by the Watermaster:

Watermaster Engineer Approval Date

Watermaster Board Approval Date

SIGNATURES
I understand and agree to abide by the terms of the Antelope Valley Adjudication Judgment. I swear under penalty of perjury that the information provided on this Transfer Request Form is correct to the best of my knowledge, that I am authorized to enter into this Transfer on behalf of the party indicated below and to bind that party on whose behalf I am signing, and that signing this Transfer Request Form is within the scope of my authority, and that the signature below, whether original, electronic, or photocopied, is authorized and valid, and is affixed with the intent to be enforceable. I understand that it is my responsibility to notify the Antelope Valley Watermaster of any changes in any of the information provided on this form within 15 days. I also understand that additional information may be required if there is a suspected potential for a material injury as defined in the Judgment.

Signature of Transferor Date
Signature of Transferee Date

STAFF REPORT
City of Lancaster
NB 1
8/26/2025
TN
Date: August 26, 2025
To: Mayor Parris and City Council Members
From: Allison E. Burns, City Attorney
Rodrick Armalin, Chief of Police - Lancaster Police Department Subject: Proposal for the purchase of Axon equipment for the Lancaster Police Department Recommendation:

Approve the purchase of Axon body cameras, vehicle cameras, AI assisted report writing, and accompanying systems.

Fiscal Impact:
$350,130; ($70,026 per year, x 5 years) Sufficient funds are available in account 10130000.5710.

Background:

Body Worn Cameras (BWC) have become mainstream equipment in police departments throughout the United States due to public demand for transparency. BWC has since become a mainstream expectation in court for its evidentiary value.

The Lancaster Police Department originally purchased Lenslock Eagle BWC for its sworn staff.

However, the team has experienced numerous dependability issues with the Lenslock product with both hardware and data synchronization. Due to the critical role BWC serves, it is imperative these issues, not plague a sworn team. The current BWC’s will be reallocated to non-sworn personnel where data synchronization and dependability are less critical.

Axon, procured through Contract Sourcewell #101223-AXN, has been in the business of BWC for many years and its dependability proven in agencies across the nation, including LASD. The addition of Axon BWC’s to the Lancaster Police Department will serve to ensure this crucial piece of equipment serves its role as expected. This purchase will come with the added benefit of AI assisted report writing and auto-transcribe, reducing the time officers spend writing, freeing them up to focus on community issues. Further, this plan includes BWC tie-in with the Lancaster Police Department’s Drone-as-a-First-Responder program, enabling an officer to call for an automated drone response through the BWC. Finally, as part of the Axon ecosystem, cameras will automatically begin recording when an officer draws a firearm, deploys a taser, or activates lights 1 9
9 0
and sirens, allowing officers to focus on what is critical while still ensuring officer activity is captured appropriately.

This proposal also includes in-vehicle camera systems which focus on the road and focus on the backseat to monitor detained persons’ well-being and actions. The forward camera is equipped with ALPR to add to the already robust technology of the Intelligence Crime Center’s capabilities.

Finally, the Axon system comes with the ability to provide links to the public so they can provide images and video of events related to a case or incident. The ability to integrate public provided evidence into a case enhances surety of facts and conclusions.

Attachment:

Axon Technology Solutions for Lancaster Police Department Axon Quote Q-727056-45854JS
Axon Technology Solutions for Lancaster
Police Department
Axon Account Manager
Jake Schwisow
[email protected]
Enhancing Safety. Increasing Efficiency. Building Trust.

Lancaster Police Department is hoping to adopt a fully integrated suite of Axon solutions— designed to modernize policing through enhanced video capture, seamless evidence management, and AI-driven efficiencies. Below is a summary of the tools and services being deployed, and the value they bring to your department and community.

Program Overview
Fleet 3 Advanced
Axon Fleet 3 In-Car video system featuring Automated License Plate Recognition (ALPR), live streaming, and seamless cloud upload. Fleet 3 delivers real-time intelligence directly to the patrol vehicle, enhancing situational awareness and proactive policing.

BWC Unlimited with TAP (Technology Assurance Plan)
Access to Axon’s latest body-worn camera (BWC) technology with unlimited data storage and future hardware upgrades. TAP ensures your officers always operate with cutting-edge equipment while staying within budget.

Camera Hardware
AB4 Camera Bundle
Axon Body 4 delivers crystal-clear video, bi-directional communication, improved battery life, and real-time alerts. Designed to increase transparency, support officer safety, and capture critical interactions. Covered by 5 years of warranty and 24/7 Customer Service Support.

AB4 Multi-Bay Dock Bundle
Efficient, high-capacity charging and upload station for the AB4 camera system. Enables quick turnaround and centralized data offload with minimal officer effort. Covered by 5 years of warranty and 24/7 Customer Service Support.

Fleet 3 Camera System
Axon Fleet 3 delivers crystal-clear video, dual lensed camera system, ALPR capabilities, and real-time alerts. Designed to increase transparency, support officer safety, and capture critical interactions. Covered by 5 years of warranty and 24/7 Customer Service Support.

Connected Software Solutions
Axon Body – Device Connectivity License
Enables LTE connectivity, GPS tracking, and priority evidence upload from body cameras to Axon Evidence, ensuring command staff have real-time insight into active incidents.

Axon Fusus – Plus User License
Enables livestream and Bi-directional communication with the Officers and their Chain of Command via the Fusus Map.

Axon Community Request
A secure public portal allowing citizens to submit evidence directly to the department.

Simplifies case building and fosters stronger community engagement.

Axon Auto-Transcribe – Unlimited
Full transcription of the audio recording from the BWC for streamlined report prep, case management, and courtroom readiness. Saves significant time on manual documentation.

Axon Draft One (AI-Assisted Report Writing)
A groundbreaking tool that uses AI to auto-generate first-draft reports based on body camera audio. Officers can quickly edit and finalize accurate, timely reports—reducing administrative burden and enhancing productivity.

Key Benefits to Lancaster PD
Time Savings: Officers spend less time on paperwork and more time in the community. Transparency & Trust: Real-time video and community tools foster accountability. Operational Efficiency: Unified tools across fleet, body cam, and records streamline workflows.
Future-Ready: Technology Assurance Plan (TAP) ensures Lancaster PD stays at the forefront of policing innovation.

5-YEAR PROJECT SUMMARY AXON BODY WORN CAMERAS, DRAFT ONE, & AXON FLEET 3 FOR LANCASTER POLICE DEPARTMENT Prepared By: Jake Schwisow, Account Executive Email: [email protected] Phone: 480-573-4262 17800 North 85th Street Scottsdale, AZ 85255

EXECUTIVE OVERVIEW ............................... 1 COST OVERVIEW ...................................... 2 STORAGE OVERVIEW ................................. 3 SOLUTION DELIVERABLES ........................... 4 DETAILED SOLUTION OVERVIEW .................... 7 DEDICATION TO CUSTOMER SUCCESS .............. 16

TABLE OF CONTENTS

1 EXECUTIVE OVERVIEW With Axon’s Body Worn Cameras and Axon Fleet 3, Lancaster Police Department will gain access to a seamlessly integrated ecosystem of connected hardware and software. Designed to work together, these solutions help better support operations, streamline collaboration, and improve data management—while reinforcing safety and security across your organization. By bundling these solutions into a single, cost-effective package, Lancaster Police Department will have the essential tools to increase transparency, streamline workflows, and drive productivity—all while fostering a safer, more connected environment. Choosing a bundled investment over individual purchases provides significant value, with Lancaster Police Department saving $61,259.23 over a 5-year contract. For your convenience, we have also included a link to our Master Services and Purchasing Agreement for you to review. If you have any questions regarding our solutions or pricing, please contact: POINT OF CONTACT Jake Schwisow Account Executive 480-573-4262 [email protected] Please note that to sign a deal with Axon Enterprise, Inc., all accounts must be current, and any outstanding invoices must be paid. We look forward to partnering with Lancaster Police Department to strengthen your workflows by integrating our technology into your daily operations.

2 COST OVERVIEW CONTRACT LENGTH AND REFRESHES Program Length 5 Years Refresh Schedule Axon Body-Worn Cameras – 30 and 60 Months Axon Docks – 30 and 60 BILLING SCHEDULE Year 1 $65,019.57 Year 2 $65,019.57 Year 3 $65,019.57 Year 4 $65,019.57 Year 5 $65,019.68 SAVINGS OVERVIEW Estimated Savings per Year $12,251.85 Total Savings Offered $61,259.23 TOTAL Total Program Cost $314,722.6 Estimated Total w/ Tax $325,097.96

3 STORAGE OVERVIEW With the collection of Lancaster Police Department’s digital evidence on the rise, having access to a highly scalable cloud-storage solution capable of housing both Axon and non-Axon data is of the utmost importance. Especially when you need a reliable storage array to quickly access, manage, and share your data. With our proposed solution, Axon is offering Lancaster Police Department the following storage amounts so your data is available all from one place.

AVAILABLE STORAGE BREAKDOWN

DEVICES STORAGE AMOUNT
Axon Body Cameras Unlimited Axon Device Storage in E.com Axon In-Car Cameras Unlimited Axon Device Storage in E.com

4 SOLUTION DELIVERABLES Axon’s Body Worn Cameras and Axon Fleet 3 bundles hardware, software, accessories, training programs, 24/7 customer support, equipment refreshes, and warranties together to help equip your officers with the solutions they need. Whether easing your administrative burden back at the station or protecting your officers in the field, Lancaster Police Department will receive the following program features and products to help you meet your goals.

HARDWARE COMPONENTS BODY-WORN CAMERAS 415 Axon Body-Worn Cameras 42 Axon Body-Worn Cameras Docks, 2 Wall Mounts, and Accessories 417 Axon Body-Worn Camera Mounts IN-CAR CAMERA SYSTEMS 47 Axon Fleet 3 Camera Kits (2 Cameras per vehicle) 47 Cradlepoint R-980 Routers 47 Axon Signal Units 47 TAOGLAS 7-IN-1 Antennas 47 Axon Fleet SIM Cards

5 SOFTWARE COMPONENTS BODY-WORN CAMERAS 415 Device Connectivity Licenses 415 Fusus Plus Licenses (Livestream and Bi-directional Communication) IN-CAR CAMERA SYSTEMS 47 Axon Fleet 3 In-Car System Licenses 47 Axon Fleet 3 ALPR Licenses 47 Device Connectivity Licenses 414 Axon Fleet 3 Unlimited Storage Licenses (2 licenses per vehicle) DEMS 415 Axon Evidence Pro Licenses 415 Axon Evidence Unlimited Storage Licenses (Axon Data Only) 415 Axon Draft One Licenses 415 Community Request Licenses 415 Auto-Transcribe Unlimited Licenses

6 TRAINING AND SUPPORT 4Axon Full-Service Deployment 4In-Car Camera System Vehicle Installations 4Axon Academy Online Training Content WARRANTIES AND REFRESHES 4Five-Year Body-Worn Camera and Dock Warranties 4Body-Worn Camera and Dock Refreshes 4In-Car Camera Systems Warranties 4In-Car Camera Systems Refresh

7 DETAILED SOLUTION OVERVIEW When deployed together, the solutions included in this plan work as a connected system to help promote safety, efficiency, and operational effectiveness. The following section provides detailed overviews of each solution, outlining their key capabilities and benefits.

AXON BODY 4 The Axon Body 4 is built to capture clear, admissible video and audio evidence in a variety of environments. It supports four configurable resolutions, from 480p to 1440p, allowing users to balance video quality with storage needs. Low-light and clear frame technology helps maintain visibility in challenging conditions, allowing the camera to capture details as they appear in the moment. For high-fidelity audio, the Axon Body 4 features four built-in microphones strategically placed within the device. These work alongside advanced audio processing to record clear speech and environmental sounds, preserving important details in every interaction. AXON BODY 4 IN USE The Axon Body 4 is designed for intuitive operation, allowing users to quickly capture critical evidence. Seven strategically placed buttons provide direct access to essential functions, including starting and stopping recordings, adjusting volume, switching modes, checking device status, and powering the camera on or off. Two programmable buttons offer additional customization, giving organizations the flexibility to tailor the device to their specific needs. To reinforce recording awareness, the Axon Body 4 provides multiple visual, audio, and haptic cues, allowing users to quickly assess the camera’s status while focusing on their tasks and interactions. For example, when the camera is recording, both the front-facing LED and the Camera Display emit a blinking red light, accompanied by a vibration and beeping sequence that aligns with the mode of operation. These sensory indicators not only provide real-time status updates to the user but also create awareness of the camera’s presence among those nearby. This heightened awareness can influence behavior, promote more constructive interactions, and contribute to safer outcomes simply by reinforcing the understanding that actions are being documented. After a recording is complete, on-camera categorization allows users to tag footage with pre-defined retention categories before upload. This helps streamline post-event workflows by organizing evidence at the moment of capture. DEVICE CONNECTIVITY WHILE IN USE Axon Body 4 is a fully connected device, designed to support real-time operations, communication, and situational awareness. With built-in LTE and Wi-Fi connectivity, the camera continuously transmits live data—including location, status, alerts, and active

8 livestreams—back to Axon’s real-time operations systems. This connection is mostly passive, meaning users do not need to take any action for their camera’s status and alerts to appear on the Axon Fusus Map. Authorized personnel can then monitor unfolding events in real time, gaining immediate situational insights without disrupting the user’s workflow. For direct engagement, Watch Me and Bi-Directional Communication allow users to actively request support. With Watch Me, a user can notify connected viewers to open a livestream, while Bi-Directional Communication enables hands-free voice contact with supervisors, translators, or other support roles. AXON BODY 4 AFTER USE After active use, users can quickly offload footage by placing the Axon Body 4 into a docking station. Whether on a desk or wall-mounted, the docking station facilitates a secure and automated transfer to Axon Evidence, clearing storage for future recordings. At the same time, the camera charges and receives firmware updates, keeping it up to date with the latest features and performance enhancements. Organization-defined settings are also updated during this process, helping to maintain consistency across devices and readying the Axon Body 4 for the next deployment. FEATURES AND BENEFITS 4RUGGED, TESTED DESIGN – Built to withstand impacts and harsh environments, meeting Ingress Protection Rating, MIL-STD Defense, and Impact Certification standards. 4AES-256-XTS FULL-DISK ENCRYPTION – Helps protect recorded evidence from unauthorized access. 4LONG-LASTING BATTERY – Provides approximately 13 hours of battery life per charge under normal operations. 4LARGE INTERNAL STORAGE – Provides 128 GB of storage to house captured video files. 4VERSATILE MOUNTING SYSTEM – Securely attaches to uniforms, helmets, belts, and other equipment for flexible placement. 4BUILT-IN CONNECTIVITY – Enables real-time notifications, GPS tracking, Wi-Fi updates, and secure livestreaming over LTE and Wi-Fi connections. 4AXON SIGNAL TECHNOLOGY – Communicates with Axon-connected devices to begin a recording when certain actions are detected, such as a user arming a TASER energy weapon. 4CONFIGURABLE PRE-EVENT BUFFER – Captures up to two minutes of video before a recording begins. 4IN-FIELD EVIDENCE OFFLOAD – Allows users to wirelessly send select evidence files directly from the camera to Axon Evidence.

9 AXON EVIDENCE Axon Evidence is a scalable, cloud-based DEMS, which stores all digital evidence in a centralized, secure system. Axon Evidence integrates with the entire Axon Ecosystem of devices and applications, so your users and administrators can use its suite of features to easily store, organize, and view data and evidence. On top of that, Axon Evidence includes easy-to-use case-building tools and sharing workflows that allow users to build cases out of the evidence stored in the system. Once built, these cases can then be shared both internally and with external partners. UNLIMITED STORAGE Axon’s Body Worn Cameras and Axon Fleet 3 bundles provide unlimited storage for Axon Device storage in Evidence.com. THIRD-PARTY VIDEO SUPPORT The Axon Evidence third-party video playback feature streamlines the handling of non-standard video formats by automatically converting and playing unsupported files. This drastically reduces the need for manual conversion, allowing users to quickly ingest and review video evidence. The feature supports more than 1,000 file types and variations, with new formats continuously added based on customer requests and Axon's identification of emerging needs. AXON EVIDENCE MANAGEMENT AND WORKFLOWS Personnel in a variety of roles can use Axon Evidence as the centralized system for uploading, storing, managing, searching, and organizing evidence—both captured via devices in the Axon Ecosystem and gathered from other, third-party sources. Each user of Axon Evidence has their actions and capabilities within the system determined by role-based access permissions defined by administrators. These permissions are reflected within the system’s dynamic user interface. For example, an Admin user will most likely have access to more tools and actions than that of a Basic user. Depending on those permissions, a user’s experience in the system will vary. Providing user access to only the tools necessary to complete their duties in Axon Evidence creates a cleaner workspace with fewer distractions. SEARCHING AND MANAGING EVIDENCE The search functionality in Axon Evidence is designed to reduce the time it takes to locate an evidence file. The search interface offers an intuitive and customizable design that allows users to quickly navigate the search fields and filters to find exactly what they are looking for. Axon Evidence also supports bulk action capabilities that can save users time when managing the system and their evidence. For example, instead of going into the video player interface to perform actions on an individual video, Axon Evidence supports bulk actions

10 that can be performed on one or many selected videos within the search results, which can save time when managing multiple pieces of evidence. WORKING WITH EVIDENCE While working with evidence, users will review and playback video and audio with our built-in media player. With basic controls that allow a user to play, stop, rewind, fast forward, and control the speed at which evidence files are played, users can quickly and thoroughly review their evidence. While reviewing evidence from the View Evidence page, your users can also: 4CREATE CLIPS AND MARKERS to focus on or separate certain parts of a video 4CREATE REDACTIONS to detect and mask common objects such as license plates, MDC screens, and faces 4VIEW METADATA OVERLAYS that display important information such as the time, date, agency name, and evidence ID 4ADD METADATA, TAGS, NOTES, AND CATEGORIES to the evidence file 4SHARE EVIDENCE FILES with other users or external partners 4ACCESS, DOWNLOAD, AND SHARE THE AUDIT TRAIL to review actions taken on the evidence 4VIEW LOCATION DATA AND AUTOMATED TRANSCRIPTIONS that may be associated with the evidence file CONTROLLING ACCESS TO EVIDENCE Axon Evidence governs access to stored information through agency-defined access control settings and configurations. Administrators will create roles for different users that dictate levels of access. Each Axon Evidence user will then be assigned one of these roles, which determines if they do or do not have access to particular DEMS features and functions, as well as evidence. Administrators can also create cases and groups to control evidence access lists and improve sharing workflows. Additionally, Axon Evidence provides many customizable security features to protect access to evidence, including password complexity requirements, failed login limits, and enforced timeout settings. Multi-factor authentication and single sign-on options are also available to further secure access to Axon Evidence. PROTECTING THE CHAIN OF CUSTODY Robust evidence, device, and user audit trails help protect the chain of custody within Axon Evidence. For peace of mind, every action taken by your personnel when in the system is tracked and recorded in a tamperproof audit trail. Axon’s compliance demonstrates our commitment to providing a trustworthy platform and offers Lancaster Police Department a way to understand the controls put in place to secure Axon Evidence and the data you store in it.

11 SECURING THE SYSTEM AND EVIDENCE Axon Evidence was designed and operates to comply with the FBI CJIS Security Policy. Lancaster Police Department can be assured that your digital data is protected by a robust information security program designed to exceed the CJIS security requirements as well as provide protection against current and emerging threats. Additionally, all evidence data is encrypted at rest and in transit. Robust SSL/TLS is implemented for data in transit using TLS 1.2 with a 256-bit connection and Perfect Forward Secrecy. Evidence data stored at rest is encrypted with at least 256-bit AES. AXON EVIDENCE MOBILE APP Axon Evidence can be accessed via the Axon app from a mobile device. The Axon app can be particularly valuable for keeping users connected and productive during downtime—such as when waiting at an off-site location. The app allows users to search for evidence with predictive features for ease-of-use, and edit evidence metadata on the spot, helping keep information accurate and up to date. Additionally, the app supports real-time internal sharing of evidence, promoting collaboration and faster decision-making both internally and externally. Additionally, authorized users can access Community Request features built into the app to obtain evidence from third parties while maintaining chain of custody. AXON AUTO-TRANSCRIBE OBJECTIVE // Generate actionable and admissible transcripts from the audio captured in evidence files Axon Auto-Transcribe is a tool in Axon Evidence made up of two modules: Review Assistant and Transcription Assistant. Investigators can use Review Assistant to accelerate their review of evidence by generating a searchable, time-synced transcript of the evidence’s audio. This allows a user to click on a word spoken in the evidence file and be immediately taken to that point of the video. Transcription Assistant generates a transcript of an entire video via AI. An investigator can use Transcription Assistant to speed up the process of creating a transcript by correcting any errors in the AI-generated transcript, rather than typing a transcript from scratch. AXON DRAFT-ONE OBJECTIVE // Capture and generate accurate, real-time narrative summaries for incident reporting Axon Draft One is an AI-powered transcription tool designed to assist officers by generating initial written narratives from their body-worn camera (BWC) footage. Using secure, automated speech recognition and natural language processing, Draft One processes AB4 audio to create accurate, time-stamped incident summaries that align with agency reporting standards. This tool helps reduce the administrative burden on officers, enabling them to focus more on field work and less on paperwork. Draft One streamlines report writing by turning in-field conversations and actions into a structured, editable draft—improving both efficiency and documentation quality.

12 AXON COMMUNITY REQUEST OBJECTIVE // Create submission portals that can be shared with the individuals or the community to intake evidence Axon Community Request is a tool built to securely request evidence from community members or the public at large for ingestion into Axon Evidence. Axon Community Request can be used by users to collect evidence, such as cell phone or surveillance video, from witnesses or victims. The tool also allows authorized users to create a public web portal and associated QR code for sharing to social media, news media, or other outlets. Community members can then access the portal link and upload any evidence they have related to the incident in question, greatly simplifying the evidence-collection process. AXON FUSUS PLUS LICENSES OBJECTIVE // Enable real-time, two-way communication and live video access through integration with Axon’s Body 4. Axon Fusus Plus is a solution designed to enable real-time situational awareness through direct livestream access and bi-directional communication with Axon Body 4 cameras. With Fusus Plus, authorized users can initiate and receive live video streams and audio from field-deployed AB4 devices, allowing command staff or dispatch to see and hear what the officer is experiencing in real time. This tool enhances operational efficiency, supports critical decision-making, and ensures immediate response capabilities during unfolding incidents. Fusus Plus provides secure, mission-critical connectivity between frontline personnel and command centers—empowering better outcomes through synchronized action and shared awareness.

13 ADDITIONAL SOLUTIONS AXON FLEET 3 Axon Fleet 3 is an in-car video system purpose-built to capture audio and video within and outside of the vehicle. Axon Fleet 3 offers comprehensive evidence capture so that incidents are accurately documented, and policing processes become more efficient and purposeful. Evidence captured by the system is stored on the Axon Fleet Hub and offloaded to Axon Evidence via LTE or Wi-Fi connections. The system also leverages Automatic License Plate Recognition (ALPR) technology to quickly gather information tied to plate reads. Axon Fleet 3 also comes equipped with Axon Signal technology to remotely start a recording if a particular action is taken or a device is engaged. AXON FLEET 3 IN USE Vehicles equipped with Axon Fleet 3 can capture clear and admissible evidence from two cameras—including a front-facing Dual-View camera and rear-facing Interior Camera—both with four configurable resolutions from 480p to 1080p. The Dual-View Camera supports a Panoramic mode with a 5:2 aspect ratio. This aspect ratio lessens the view of the vehicle’s hood—as well as the sky—when recording, which helps capture a wider view of events happening in front of the vehicle. The camera uses two built-in image sensors and auto-exposure capabilities to record high-quality video in all conditions ranging from dim twilight to bright daylight. This technology helps the camera adjust to a variety of lighting environments as the patrol vehicle moves, including traveling through tunnels and parking garages. Additionally, the use of motion blur technology helps to clearly capture fast-moving objects, which is especially useful when using our ALPR technology to scan license plates in the flow of traffic. The Interior Camera captures video in full color during daylight operation and automatically transitions to capture video in infrared at night. This infrared technology enables video recording even in total darkness, helping capture activity taking place within the vehicle’s cabin. The Interior Camera has a set aspect ratio of 4:3, which allows the camera to capture video evidence of the back cabin, from door-to-door, and above an occupant's head to below their knees. Each Axon Fleet 3 camera leverages a multi-microphone setup. The Dual-View Camera has three built-in microphones, and the Interior Camera has two built-in microphones. With these multiple integrated microphones, Axon Fleet 3 can make the most effective use of Axon’s audio algorithm—developed in partnership with Nokia—which dramatically improves captured audio. Combining Nokia-OZO’s Audio Focus and Audio Windscreen technology with our audio algorithm helps to improve the clarity of speech and reduce unwanted environmental noise in a variety of recording environments.

14 / EASE OF USE THROUGH AXON FLEET DASHBOARD The Axon Fleet Dashboard application—designed for an in-vehicle MDC—can be used to control and support Axon Fleet 3 in-car cameras. Axon Fleet Dashboard allows users to start and stop camera recordings, play recorded videos, add metadata to videos, and offload evidence directly from the vehicle. Additionally, the Axon Fleet Dashboard supports user interactions with Axon Fleet 3’s built-in ALPR capabilities, which include receiving and responding to vehicle hotlist notifications. Once signed in to Axon Fleet Dashboard, users can interact with and navigate four main pages: 4DEVICES – Users can review camera status, manually start and stop a camera recording, and watch live views from connected in-car and body-worn cameras. 4VIDEOS – Users can review and add metadata to videos, position videos for priority upload, and check the upload status of videos. 4ALPR – Users can view and interact with ALPR system notifications and responses. 4SETTINGS – Users can review vehicle, user, and system information, pair with and change body-worn camera settings, and sign out of the application. Axon Fleet Dashboard also supports the ability for two users to be signed into the same session at once. Any video evidence recorded when two users are signed in will have dual ownership when evidence is uploaded to Axon Evidence, thus allowing both users to access and manage the captured evidence. / DEVICE CONNECTIVITY WHILE IN USE Axon Fleet 3 is a fully connected in-car system, designed to support real-time operations, communication, and situational awareness. With built-in LTE connectivity, the Dual-View Camera continuously transmits live data—including location, status, alerts, and active livestreams—back to Axon’s real-time operations systems. This connection is mostly passive, meaning users do not need to take any action for their camera’s status and alerts to appear on the Axon Fusus Map. Authorized personnel can then monitor unfolding events in real time, gaining immediate situational insights without disrupting the user’s workflow. AXON FLEET 3 AFTER USE When not in use, Axon Fleet 3 remains connected to Axon Evidence through an in-vehicle Cradlepoint router, enabling automatic evidence uploads. Video footage stored on the Axon Fleet Hub—the vehicle’s onboard storage system—is transferred via LTE or Wi-Fi, helping reduce manual upload steps and facilitating the availability of evidence to Axon Evidence administrators and supervisors.

15 FEATURES AND BENEFITS 4A DURABLE DESIGN – Tested to meet/pass the Ingress Protection Rating, MIL-STD Defense, and Impact Certified standards, and can withstand impacts and operate in a range of temperatures. 4CONTINUOUS SYSTEM POWER FROM THE VEHICLE’S ENGINE – Keeps the system running while the ignition is switched on and includes a backup battery providing up to 30 minutes of power after the ignition is turned off. 4BUILT-IN ALPR CAMERA – Uses 4K sensors to help legibly capture license plates up to 3 lanes away and ~50 feet in distance, at a closing speed of ~140 MPH. 4CONFIGURABLE PRE-EVENT BUFFER – Captures up to two minutes of video before the camera is actively recording. 4EMBEDDED AXON SIGNAL TECHNOLOGY – Supports configurable triggers that activate cameras if a particular action is taken—like a door being opened or a weapon rack being unlocked. 4A FIXED FOCUS FRONT-FACING LENS – Allows users to capture objects within a wide range (40 cm to infinity) without needing to manually focus the camera or purchase lenses of different focal lengths. 4VIDEO RECALL FEATURE – Allows for recovery of video footage if a device was not recording at the time of an incident. 4SUPPORT FOR MULTIPLE CAMERAS – Expandable to support up to five in-car video cameras, providing additional angles and views of events.

16 DEDICATION TO CUSTOMER SUCCESS Once a solution is delivered, most agencies are left asking, what’s next? Axon has you covered. We are committed to providing Lancaster Police Department with post-sales and post-deployment support. Whether that be troubleshooting assistance, technical support, additional training, consulting advice, or help with exchanging and returning equipment, our dedicated team is here for you. Through regular communication, our knowledgeable staff can offer Lancaster Police Department the support you should expect from a service provider. This support includes access to: 424/7 CUSTOMER SUPPORT – Axon’s full customer support division is available via live phone support, 24 hours a day, seven days a week. 4PROFESSIONAL SERVICES – Experienced and skilled personnel who are involved in the implementation, development, deployment, management, and support of your Axon program 4SALES ENGINEERS (SE) – SEs own the technical aspects of the sales process and have a technical mindset that allows them to understand complex systems and solve intricate challenges involving hardware, software, and network issues 4CUSTOMER SUCCESS MANAGERS – Dedicated Axon personnel assigned per agency who communicate important operating system/firmware and hardware updates, identify day-to-day bugs, and address general issues, as well as fulfill hardware refreshes and deployment of new equipment, conduct quarterly business reviews with customers, and identify important customer feature requests 4ECOMMERCE – Axon’s online store available to clients for an expedited purchasing experience on smaller orders 4CONSULTANTS – Part-time expert consultants, made up of retired law enforcement leaders, who deliver service on smaller projects and serve as additional resources on large projects 4AXON WEEK – Axon’s user conference brings members of the law enforcement community, technology leaders, and prosecutors together to learn how agencies can make policing more effective and efficient with Axon products 4ACCOUNT MANAGEMENT HELP – Available assistance when issues arise with an agency’s account 4LEARNING AND DEVELOPMENT – Ongoing training courses that cover and promote proper software and hardware use and compliance Our goal is to provide Lancaster Police Department with the necessary assistance to help make the most of the solutions you count on every day. With a network of resources dedicated to and designed to meet the needs of law enforcement, Axon is here to help.

17 CAPTURE TRUTH ACCELERATE JUSTICE PROTECT LIFE

Non-Binding Budgetary Estimate

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Q-727056-45854JS
Issued: 07/16/2025
Quote Expiration: 09/15/2025
Estimated Contract Start Date: 11/15/2025
Account Number: 517964
Payment Terms: N30
Mode of Delivery: UPS-GND
Credit/Debit Amount: $0.00

SHIP TO BILL TO SALES REPRESENTATIVE PRIMARY CONTACT
Casey Perkinson c/o Lancaster Police Department
44811 Sierra Hwy
Lancaster,
CA
93534-3226
USA

Lancaster Police Dept - CA
44811 Sierra Hwy
Lancaster
CA
93534-3226
USA
Email:

Jake Schwisow
Phone:

Email: [email protected]
Fax:

Rodrick Armalin
Phone:

Email: [email protected]
Fax:

Quote Summary Discount Summary
Program Length 60 Months Average Savings Per Year $12,251.85 TOTAL COST $314,722.65
ESTIMATED TOTAL W/ TAX $325,097.96 TOTAL SAVINGS $61,259.23

Axon Enterprise, Inc.
17800 N 85th St.

Scottsdale, Arizona 85255
United States
VAT: 86-0741227
Domestic: (800) 978-2737
International: +1.800.978.2737
Non-Binding Budgetary Estimate

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Payment Summary
Date Subtotal Tax Total
Oct 2025 $62,944.53 $2,075.04 $65,019.57
Oct 2026 $62,944.53 $2,075.04 $65,019.57
Oct 2027 $62,944.53 $2,075.04 $65,019.57
Oct 2028 $62,944.53 $2,075.04 $65,019.57
Oct 2029 $62,944.53 $2,075.15 $65,019.68
Total $314,722.65 $10,375.31 $325,097.96
Non-Binding Budgetary Estimate

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Quote Unbundled Price: $375,976.80
Quote List Price: $327,289.80
Quote Subtotal: $314,722.65
Pricing
All deliverables are detailed in Delivery Schedules section lower in proposal Item Description Qty Term Unbundled List Price Net Price Subtotal Tax Total Program
Fleet3A Fleet 3 Advanced 7 60 $314.35 $258.90 $258.90 $108,738.00 $5,250.09 $113,988.09 BWCUwTAP BWC Unlimited with TAP 15 60 $127.88 $99.66 $99.66 $89,694.00 $3,239.41 $92,933.41 A la Carte Hardware
H00001 AB4 Camera Bundle 15 $899.00 $899.00 $13,485.00 $1,517.06 $15,002.06 H00002 AB4 Multi Bay Dock Bundle 2 $1,638.90 $1,638.90 $3,277.80 $368.75 $3,646.55 A la Carte Software
73449 AXON BODY - LICENSE - DEVICE CONNECTIVITY 15 60 $5.42 $5.42 $4,878.00 $0.00 $4,878.00 73618 AXON COMMUNITY REQUEST 15 60 $10.85 $10.85 $9,765.00 $0.00 $9,765.00 73447 AXON FUSUS - LICENSE - PLUS USER 15 60 $15.19 $15.19 $13,671.00 $0.00 $13,671.00 85760 AXON AUTO-TRANSCRIBE - UNLIMITED SERVICE 15 60 $22.57 $19.18 $17,266.05 $0.00 $17,266.05 101283 AXON RECORDS - DRAFT ONE - AI-ASSISTED REPORT
WRITING 15 60 $70.52 $59.94 $53,947.80 $0.00 $53,947.80 Total $314,722.65 $10,375.31 $325,097.96
Delivery Schedule
Hardware
Bundle Item Description QTY Shipping Location Estimated Delivery Date AB4 Camera Bundle 100147 AXON BODY 4 - CAMERA - NA US FIRST RESPONDER BLK RAPIDLOCK 15 1 10/15/2025
AB4 Camera Bundle 100466 AXON BODY 4 - CABLE - USB-C TO USB-C 17 1 10/15/2025 AB4 Camera Bundle 100775 AXON BODY 4 - MAGNETIC DISCONNECT CABLE 17 1 10/15/2025 AB4 Camera Bundle 74028 AXON BODY - MOUNT - WING CLIP RAPIDLOCK 17 1 10/15/2025 AB4 Multi Bay Dock Bundle 100206 AXON BODY 4 - 8 BAY DOCK 2 1 10/15/2025 AB4 Multi Bay Dock Bundle 70033 AXON - DOCK WALL MOUNT - BRACKET ASSY 2 1 10/15/2025 AB4 Multi Bay Dock Bundle 71019 AXON BODY - DOCK POWERCORD - NORTH AMERICA 2 1 10/15/2025 Fleet 3 Advanced 101675 AXON FLEET - ERICSSON CRADLEPOINT R980-5GD-A+5YR NETCLOUD 7 1 10/15/2025
Fleet 3 Advanced 101924 AXON FLEET - TAOGLAS ANT - 7-IN-1 4CELL 2WIFI 1GNSS INT 7 1 10/15/2025 Fleet 3 Advanced 70112 AXON SIGNAL - VEHICLE 7 1 10/15/2025 Fleet 3 Advanced 72036 AXON FLEET 3 - STANDARD 2 CAMERA KIT 7 1 10/15/2025 Fleet 3 Advanced 72049 AXON FLEET 3 - SIM INSERTION - TMO 7 1 10/15/2025 BWC Unlimited with TAP 73309 AXON BODY - TAP REFRESH 1 - CAMERA 15 1 04/15/2028 BWC Unlimited with TAP 73689 AXON BODY - TAP REFRESH 1 - DOCK MULTI BAY 2 1 04/15/2028 BWC Unlimited with TAP 73310 AXON BODY - TAP REFRESH 2 - CAMERA 15 1 10/15/2030 BWC Unlimited with TAP 73688 AXON BODY - TAP REFRESH 2 - DOCK MULTI BAY 2 1 10/15/2030 Fleet 3 Advanced 72040 AXON FLEET - TAP REFRESH 1 - 2 CAMERA KIT 7 1 10/15/2030 Non-Binding Budgetary Estimate

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Software
Bundle Item Description QTY Estimated Start Date Estimated End Date BWC Unlimited with TAP 73686 AXON EVIDENCE - STORAGE - UNLIMITED (AXON DEVICE) 15 11/15/2025 11/14/2030 BWC Unlimited with TAP 73746 AXON EVIDENCE - ECOM LICENSE - PRO 15 11/15/2025 11/14/2030 Fleet 3 Advanced 80400 AXON EVIDENCE - FLEET VEHICLE LICENSE 7 11/15/2025 11/14/2030 Fleet 3 Advanced 80401 AXON FLEET 3 - ALPR LICENSE - 1 CAMERA 7 11/15/2025 11/14/2030 Fleet 3 Advanced 80402 AXON FLEET - LICENSE - REAL-TIME LOCATION, ALERTS, & LIVESTREAM 7 11/15/2025 11/14/2030
Fleet 3 Advanced 80410 AXON EVIDENCE - STORAGE - FLEET 1 CAMERA UNLIMITED 14 11/15/2025 11/14/2030 A la Carte 101283 AXON RECORDS - DRAFT ONE - AI-ASSISTED REPORT WRITING 15 11/15/2025 11/14/2030
A la Carte 73447 AXON FUSUS - LICENSE - PLUS USER 15 11/15/2025 11/14/2030 A la Carte 73449 AXON BODY - LICENSE - DEVICE CONNECTIVITY 15 11/15/2025 11/14/2030 A la Carte 73618 AXON COMMUNITY REQUEST 15 11/15/2025 11/14/2030 A la Carte 85760 AXON AUTO-TRANSCRIBE - UNLIMITED SERVICE 15 11/15/2025 11/14/2030 Services
Bundle Item Description QTY
Fleet 3 Advanced 73391 AXON FLEET 3 - DEPLOYMENT PER VEHICLE - NOT OVERSIZED 7 Warranties
Bundle Item Description QTY Estimated Start Date Estimated End Date BWC Unlimited with TAP 80464 AXON BODY - TAP WARRANTY - CAMERA 15 10/15/2026 11/14/2030 BWC Unlimited with TAP 80465 AXON BODY - TAP WARRANTY - MULTI BAY DOCK 2 10/15/2026 11/14/2030 Fleet 3 Advanced 80379 AXON SIGNAL - EXT WARRANTY - SIGNAL UNIT 7 10/15/2026 11/14/2030 Fleet 3 Advanced 80495 AXON FLEET 3 - EXT WARRANTY - 2 CAMERA KIT 7 10/15/2026 11/14/2030 Non-Binding Budgetary Estimate

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Shipping Locations
Location Number Street City State Zip Country
1 44811 Sierra Hwy Lancaster CA 93534-3226 USA
Payment Details
Oct 2025
Invoice Plan Item Description Qty Subtotal Tax Total
Year 1 101283 AXON RECORDS - DRAFT ONE - AI-ASSISTED REPORT WRITING 15 $10,789.57 $0.00 $10,789.57 Year 1 73447 AXON FUSUS - LICENSE - PLUS USER 15 $2,734.20 $0.00 $2,734.20 Year 1 73449 AXON BODY - LICENSE - DEVICE CONNECTIVITY 15 $975.60 $0.00 $975.60 Year 1 73618 AXON COMMUNITY REQUEST 15 $1,953.00 $0.00 $1,953.00 Year 1 85760 AXON AUTO-TRANSCRIBE - UNLIMITED SERVICE 15 $3,453.21 $0.00 $3,453.21 Year 1 BWCUwTAP BWC Unlimited with TAP 15 $17,938.80 $647.87 $18,586.67 Year 1 Fleet3A Fleet 3 Advanced 7 $21,747.59 $1,050.01 $22,797.60 Year 1 H00001 AB4 Camera Bundle 15 $2,697.00 $303.41 $3,000.41 Year 1 H00002 AB4 Multi Bay Dock Bundle 2 $655.56 $73.75 $729.31 Total $62,944.53 $2,075.04 $65,019.57
Oct 2026
Invoice Plan Item Description Qty Subtotal Tax Total
Year 2 101283 AXON RECORDS - DRAFT ONE - AI-ASSISTED REPORT WRITING 15 $10,789.57 $0.00 $10,789.57 Year 2 73447 AXON FUSUS - LICENSE - PLUS USER 15 $2,734.20 $0.00 $2,734.20 Year 2 73449 AXON BODY - LICENSE - DEVICE CONNECTIVITY 15 $975.60 $0.00 $975.60 Year 2 73618 AXON COMMUNITY REQUEST 15 $1,953.00 $0.00 $1,953.00 Year 2 85760 AXON AUTO-TRANSCRIBE - UNLIMITED SERVICE 15 $3,453.21 $0.00 $3,453.21 Year 2 BWCUwTAP BWC Unlimited with TAP 15 $17,938.80 $647.87 $18,586.67 Year 2 Fleet3A Fleet 3 Advanced 7 $21,747.59 $1,050.01 $22,797.60 Year 2 H00001 AB4 Camera Bundle 15 $2,697.00 $303.41 $3,000.41 Year 2 H00002 AB4 Multi Bay Dock Bundle 2 $655.56 $73.75 $729.31 Total $62,944.53 $2,075.04 $65,019.57
Oct 2027
Invoice Plan Item Description Qty Subtotal Tax Total
Year 3 101283 AXON RECORDS - DRAFT ONE - AI-ASSISTED REPORT WRITING 15 $10,789.57 $0.00 $10,789.57 Year 3 73447 AXON FUSUS - LICENSE - PLUS USER 15 $2,734.20 $0.00 $2,734.20 Year 3 73449 AXON BODY - LICENSE - DEVICE CONNECTIVITY 15 $975.60 $0.00 $975.60 Year 3 73618 AXON COMMUNITY REQUEST 15 $1,953.00 $0.00 $1,953.00 Year 3 85760 AXON AUTO-TRANSCRIBE - UNLIMITED SERVICE 15 $3,453.21 $0.00 $3,453.21 Year 3 BWCUwTAP BWC Unlimited with TAP 15 $17,938.80 $647.87 $18,586.67 Year 3 Fleet3A Fleet 3 Advanced 7 $21,747.59 $1,050.01 $22,797.60 Year 3 H00001 AB4 Camera Bundle 15 $2,697.00 $303.41 $3,000.41 Year 3 H00002 AB4 Multi Bay Dock Bundle 2 $655.56 $73.75 $729.31 Total $62,944.53 $2,075.04 $65,019.57
Non-Binding Budgetary Estimate

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Oct 2028
Invoice Plan Item Description Qty Subtotal Tax Total
Year 4 101283 AXON RECORDS - DRAFT ONE - AI-ASSISTED REPORT WRITING 15 $10,789.57 $0.00 $10,789.57 Year 4 73447 AXON FUSUS - LICENSE - PLUS USER 15 $2,734.20 $0.00 $2,734.20 Year 4 73449 AXON BODY - LICENSE - DEVICE CONNECTIVITY 15 $975.60 $0.00 $975.60 Year 4 73618 AXON COMMUNITY REQUEST 15 $1,953.00 $0.00 $1,953.00 Year 4 85760 AXON AUTO-TRANSCRIBE - UNLIMITED SERVICE 15 $3,453.21 $0.00 $3,453.21 Year 4 BWCUwTAP BWC Unlimited with TAP 15 $17,938.80 $647.87 $18,586.67 Year 4 Fleet3A Fleet 3 Advanced 7 $21,747.59 $1,050.01 $22,797.60 Year 4 H00001 AB4 Camera Bundle 15 $2,697.00 $303.41 $3,000.41 Year 4 H00002 AB4 Multi Bay Dock Bundle 2 $655.56 $73.75 $729.31 Total $62,944.53 $2,075.04 $65,019.57
Oct 2029
Invoice Plan Item Description Qty Subtotal Tax Total
Year 5 101283 AXON RECORDS - DRAFT ONE - AI-ASSISTED REPORT WRITING 15 $10,789.57 $0.00 $10,789.57 Year 5 73447 AXON FUSUS - LICENSE - PLUS USER 15 $2,734.20 $0.00 $2,734.20 Year 5 73449 AXON BODY - LICENSE - DEVICE CONNECTIVITY 15 $975.60 $0.00 $975.60 Year 5 73618 AXON COMMUNITY REQUEST 15 $1,953.00 $0.00 $1,953.00 Year 5 85760 AXON AUTO-TRANSCRIBE - UNLIMITED SERVICE 15 $3,453.21 $0.00 $3,453.21 Year 5 BWCUwTAP BWC Unlimited with TAP 15 $17,938.80 $647.93 $18,586.73 Year 5 Fleet3A Fleet 3 Advanced 7 $21,747.59 $1,050.05 $22,797.64 Year 5 H00001 AB4 Camera Bundle 15 $2,697.00 $303.42 $3,000.42 Year 5 H00002 AB4 Multi Bay Dock Bundle 2 $655.56 $73.75 $729.31 Total $62,944.53 $2,075.15 $65,019.68

Non-Binding Budgetary Estimate

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This Rough Order of Magnitude estimate is being provided for budgetary and planning purposes only. It is non-binding and is not considered a contractable offer for sale of Axon goods or services.

Tax is estimated based on rates applicable at date of quote and subject to change at time of invoicing. If a tax exemption certificate should be applied, please submit prior to invoicing.

Contract Sourcewell #101223-AXN is incorporated by reference into the terms and conditions of this Agreement. In the event of conflict the terms of Axon's Master Services and Purchasing Agreement shall govern.

STAFF REPORT
City of Lancaster

Date: August 26, 2025

To: Mayor Parris and City Council Members

From: Trolis Niebla, City Manager
Marissa Diaz, Public Works Director

Subject: Community Cleanup Program Implementation and Appropriation of Funds

Recommendations:

1. Authorize the City Manager , or his designee, to implement a Commu nity Cleanup Program, and direct City staff to provide additional graffiti and illegal dumping abatement services.

2. Appropriate $75,000.00 in General Funds from fund balance to Operating Budget account GL 101410000.5318.

3. Appropriate $105,000.00 in General Funds from fund balance to Operating Budget account GL 101410000.5103.

4. Authorize the City Manager, or his designee, to execute all related documents.

Fiscal Impact:
$180,000.00.

Background:

The proposed Community Cleanup Program is designed to enhance neighborhood pride, reduce blight, and improve the quality of life.

MD:jr

NB 2

08/26/25
TN

Lancaster City CouncilAugust 26, 2025

Lancaster City Council
August 26, 2025