Marina City Council
March 3, 2026

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Baseline Conditions:

On May 17, 2005, the City approved an allocation of 593 AFY of potable water in Resolution No. 2005 -129 Reserving and Allocating Water Sufficient to Serve the Marina Community Partners (MCP) Development.

The University Villages Settlement Agreement (Settlement Agreement) imposes the following requirements for the installation of water conserving facilities in residences throughout the Specific Plan Area with the objective of maximizing water conservation:

• Drought-tolerant plant materials in landscaping
• Satellite controlled Evapotranspiration-based (ET) irrigation control systems • Tankless hot water heaters
• Dual Flush / Ultra low flow toilets
• Hot water return pumping
• Conversion to the use of recycled water for exterior non-residential demands as available.

Potable water will remain in use for landscape irrigation until recycled water becomes available to the Project. This analysis, as provided in previous versions, includes an estimate of the potable water credit due back to MCP once reclaimed water is provided to the site by MCWD.

Several phases of the project have been constructed or are under construction throughout the Specific Plan Area from land transfers by MCP to other parties. The following is a list of these projects:

• Montage Health, Marina Campus
• Veterans Administration Monterey Health Care Center
• Springhill Suites (Marriott) Hotel
• Phase 1A (Marina Village Retail Center)
• Cinemark Theater
• Planning Area B1 (Fast Casual Dining Project)
• Phase 1C Residential
• University Village Apartments
• Phase 2 East Residential
• Phase 2 West Residential
• Phase 3 North Residential
• Phase 1B Promenade Commercial
• Phase 1B Promenade Residential
• Phase 2 North Commercial

A detailed breakdown of the water allocation for the Specific Plan Area including built projects and proposed project is included in the following table.

EXHIBIT B
14

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Table 1: Projects in MCP Dunes Project Area

Dunes on Monterey Bay Project Total 593.00 593.00
Constructed or Approved Projects
Dunes Shopping Center (Planning Area 1A) 34.00 559.00 CHOMP / Montage 22.30 536.70
QSR (Shops at the Dunes) 12.90 523.80 Cinemark 9.30 514.50
UV Apartments 14.00 500.50
Phase 1C Residential 69.50 431.00 VA Clinic 20.70 410.30
Springhill Suites / Home2Suites (incl PSA Contract) 30.00 380.30 Phase 2 East Residential 46.30 334.00 Phase 1B Promenade Residential 19.80 314.20 Phase 1B Promenade Commercial 20.00 294.20 Phase 2 North Commercial 59.97 234.23 Terracina Site 1 19.79 214.44
Terracina Site 2 21.42 193.02
Phase 2 West 22.14 192.30
Phase 3 North 36.67 177.77
Kaiser - Parcel 1 15.00 177.30 Unstoppable Group / Mercedes 12.14 180.16 SUB-TOTAL OF CONSTRUCTED OR APPROVED 485.93 107.07

PROPOSED PROJECTS
Phase 3 South Residential 36.22
SUB-TOTAL OF PROPOSED PROJECTS 36.22 70.85

FUTURE PROJECTS
Phase 2 North Residential 15.88 54.97 Phase 1B - MBBC Commercial 20.00 34.97 Phase 3 Commercial – OP3+4 29.29 5.68 Sub-Total of Proposed or Future Project 101.39

5.68 23.09

28.77 ** Recycled Water Demands derived from Table 3B
Remaining
Allocation
(AFY)

SUB-TOTAL REMAINING ALLOCATION
Shea Homes - The Dunes Project

TALLY TABLE
Revised November 24, 2025 Water Allocation & Demand Verification Update

A B C D
SUB-TOTAL RECYCLED WATER DEMAND (ADDED TO REMAINING ALLOCATION AS CREDIT)**

TOTAL REMAINING ALLOCATION (WITH RECYCLED WATER CREDIT) PROJECT Allocation (AFY)
Constructed or
Approved Project
(AFY)
Proposed or
Future Project
(AFY)

EXHIBIT B
15

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Phase 3 South Water Supply Availability

A water demand estimate was prepared for the proposed Project based on information provided by the project applicant. Water demands are separately identified for interior and exterior potable water uses, to facilitate an accounting of the potential future use of recycled water and potable water conservation resulting therefrom.

Provided in Exhibit 1 is the Tentative Map for the Phase 3 South Residential which constitutes the property where the residential uses will be developed. Phase 3 South Non-Residential consists of the property within the Linear Park, turf area and open space parcels. Open Space Landscape areas include the Butterfly Park (OS-3N.3), Parcel L3S.3, Parcel L3S.6, Parcel OS-3S.8, Parcel OS-3S.9, Parcel OS-3S.10, Parcel OS-3S.11 and Parcel OS-3S.12. Additionally, the Linear Park area, median located between Ocean Bluff and Sand Dune Avenue. Only the Southern Residential portion of Phase 3 has been analyzed in this report.

The following tables 2A-2B provides more detail of the estimated water demands for the proposed Phase 3 South Project, including the interior and exterior residential demands. This estimated usage is based on water demands for similar local projects and Best Management Practices (BMPs) for the installation.

Table 2A: Phase 3 South Residential Interior Demands

Table 2B: Phase 3 South Residential Exterior Demands

Land Use Type of Resident
Number of
Units
Occupancy
(People/Unit)
Interior Unit
Demand
(GPC/Day)
Demand
(AFC/Y)
Unit Residential
Demand (AFY)
Residential
Interior Demand
(AFY)
Residential Units Bay House 39.00 2.75 55 0.06 0.169 6.607 Residential Units Light House 47.00 3 55 0.06 0.185 8.687 Residential Units Sky House 40.00 3 55 0.06 0.185 7.393 Total 22.69
Phase 3 South
Land Use Type of Resident Lot Size (SF)
Percent Turf
Planting
Turf Irrigated
Area (Acres)
Percent
Ornamental
Planting
Ornamental
Irrigated Area
(Acres)
Unit Turf
Demand
(AFY/Unit)
Unit Ornamental
Demand
(AFY/Unit)
Exterior
Demands (AFY)
Residential Units Bay House 2,405.00 50% 0.014 50% 0.014 0.029 0.022 1.978 Residential Units Light House 4,000.00 50% 0.023 50% 0.023 0.048 0.036 3.965 Residential Units Sky House 4,950.00 50% 0.028 50% 0.028 0.060 0.045 4.176 Total 10.12
Phase 3 South

EXHIBIT B
16

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Phase 3 South Recycled Water Demand

In addition to the residential water demands, Phase 3 South has Non-Residential exterior demands that will be supplied by recycled and reclaimed water supply. Table 3A identifies the water demands needed for the Phase 3 South Non-Residential Exterior demands.

Table 3A: Phase 3 South Non-Residential Exterior Demands Using Recycled Water

Table 3B showing the total recycled water demands for the Dunes development across the different Phases of the project that are currently developed or have a tentative map.

Table 3B: Total Project Recycled Water Demands

Land Use Land Use Description Lot Size (SF)
Lot Size
(acres)
% Irrigable
Area
(acres)
Irrigable Area
(acres)
% Turf
Planting
Turff Irrigated
Area (acres)
% Ornimental
Plantings
Ornimental
Irrigated Area
(acres)
Unit Turf Demand
(AFY/Unit)
Unit Ornimental
Demand
(AFY/Unit)
Unit
Exterior
Factor
(AFY/Unit)
Phase 3 South
Common Area Butterfly Park (OS-3N.3) 9,000 0.21 0.80 0.17 0.50 0.08 0.50 0.08 0.17 0.15 0.32 Common Area Linear Park (L3S.3) 13,266 0.30 0.80 0.24 0.50 0.12 0.50 0.12 0.26 0.22 0.47 Common Area Linear Park (L3S.6) 4,320 0.10 0.80 0.08 0.50 0.04 0.50 0.04 0.08 0.07 0.15 Common Area Open Space (Parcel OS-3S.8) 8,567 0.20 0.80 0.16 0.50 0.08 0.50 0.08 0.17 0.14 0.31 Common Area Open Space (Parcel OS-3S.9) 7,550 0.17 0.80 0.14 0.50 0.07 0.50 0.07 0.15 0.12 0.27 Common Area Open Space (Parcel OS-3S.10) 6,529 0.15 0.80 0.12 0.50 0.06 0.50 0.06 0.13 0.11 0.23 Common Area Open Space (Parcel OS-3S.11) 4,143 0.10 0.80 0.08 0.50 0.04 0.50 0.04 0.08 0.07 0.15 Common Area Open Space (Parcel OS-3S.12) 3,119 0.07 0.80 0.06 0.50 0.03 0.50 0.03 0.06 0.05 0.11 Total 2.02
Recycled
Demand (AFY)

2.5 7.55

3.15 Phase 2 North (Commercial) 0.06

4.40 3.41
Recycled
Demand (AFY)

2.02 23.09
Phase 1C
Phase 2 East
Phase 3 North
Proposed Projects
Phase 3 South
Total Recycled Demands
Phase 2 West
Recycled Water Demand
Constructed or Approved
Projects
Phase 1B

EXHIBIT B
17

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Phase 3 South Conclusions

An adequate supply of water is estimated to be available to the Phase 3 South Project based on the allocation of 593 AFY of Potable Water to the MCP Dunes Project Area per City Resolution No. 2005 -129.

Tables 2A-2C depict the appropriate amount of water needed to be allocated for Residential and Non - Residential interior and exterior demands, and sufficient water allocation remains for this expected demand through buildout of the project . Approximately 82% (485.93 AFY) of the Specific plan water allocation has been approved and constructed. Approximately 18% of the Specific Plan water allocation ( 107.07 AFY) is available for the Phase 3 South Project and remaining future or proposed development. Additionally, Phase 3 South, along with approved and constructed phases, includes exterior demands using recycled water that will be credited against the Potable Water allocation, thus providing additional potable allocation for future demand as noted in table 3B. Therefore, there is adequate water available for the Dunes Phase 3 South.

Sincerely,

Bob Krallinger, PE Tim Wilson, PE
Water Practice Lead Project Manager
Bowman Bowman

EXHIBIT B
18 ORDINANCE NO. 2026-01

AN ORDINANCE OF MARINA CITY COUNCIL OF THE CITY OF
MARINA ADOPT ING CHANGES TO SECTION 17.42.040
(ACCESSORY DWELLING UNITS) OF THE MARINA

MUNICIPAL CODE AND FIND THE PROPOSED AMENDMENTS
ARE EXEMPT FROM CEQA PER PUBLIC RESOURCES CODE §
21080.17 AND CEQA GUIDELINES § 15282(h).

WHEREAS, the adoption of several state laws by the California State Legislature resulted in changes to State ADU statutes that stipulate development standards and regulatory requirements for accessory units; and;

WHEREAS, changes to the Marina Municipal Code are necessary to bring Section 17.42.040 (Accessory Dwelling Units) into compliance with State law; and

WHEREAS, the proposed amendments are consistent with State law, the Marina Municipal Code, and the Marina General Plan; and

WHEREAS, the adoption of this accessory dwelling unit ordinance is statutorily exempt from the California Environmental Quality Act pursuant to Public Resources Code section 21080.17 and CEQA Guidelines section 15282(h), which states that CEQA does not apply to the adoption of an ordinance by a city or county to implement the provisions of Government Code §§ 66310 to 66342 (the provision of Accessory Dwelling Units and Junior Accessory Dwelling Units).

WHEREAS, on December 18, 2025, the Planning Commission recommended adopting the changes to Section 17.42.020 of the Marina Municipal Code

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MARINA DOES ORDAIN AS FOLLOWS:

Section 1. Findings.

The City Council finds and determines the recitals set forth above to be true and correct and by this reference, incorporates the same herein as findings.

Section 2. Title 17, Zoning, of the Marina City Code is hereby amended to read as follows.

17.42.040 Accessory dwelling units.

This section establishes standards for the location and construction of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) (jointly referred to as “accessory units” in this section) in conformance with California Government Code Sections 66310-663421 65852.2 and 65852.22. These standards are intended to allow for accessory units as an important form of affordable housing and to comply with state law.

A. Permits Required.

1. Accessory units consistent with the requirements of this section are allowed by right with the issuance of a building permit.

2. Time Limit to Determine Application Completeness . The city shall determine whether an application for an accessory unit is complete and provide written notice of the determination not later than 15 business days after receiving the application. If the City determines that an application is incomplete, t he City will provide the applicant with a list of incomplete items and a description of how the application can be made complete in the written notice. If a permit application is determined to be incomplete or is denied, the applicant may appeal that decision. After receipt of the appeal, the City shall provide a final written determination in no more than 60 business days.2

23. Time Limit to Act. The city shall complete its review of an accessory unit application and approve or deny the application within sixty days of receipt of the application if there is an existing single-family or multifamily dwelling on the lot. If the permit application to create an accessory unit is submitted with a permit application to create a new single -family dwelling on the lot, the city shall delay acting on the permit application for the accessory unit until the city acts on the permit application to create the new single-family dwelling. If the applicant requests a delay, the sixty -day time limit shall be extended for the period of the requested delay. In either case the application to create the accessory unit shall be considered without discretionary review or hearing.

B. Permitted Zoning Districts. Accessory dwelling units are permitted in any zoning district where single-family or multifamily dwellings are permitted or conditionally permitted land use as identified in this title. Junior accessory dwelling units are permitted in any zoning district where single-family dwellings are a permitted or conditionally permitted land use as identified in this title.

C. Site and Design Standards.

1. General. Accessory units are subject to the same requirements that apply to primary dwellings on the same lot in the applicable zoning district except as specified in this section.

1 Per HCD review of ordinance, dated September 17, 2025 2 SB 543

2. Number of Accessory Units. No more than one junior accessory dwelling unit and one accessory dwelling unit are permitted The following units shall be ministerially approved on a single lot with a single-family dwelling:
a. One ADU within the proposed space of a single-family dwelling or existing space of a single-family dwelling or existing accessory structure that may include an expansion of not more than 150 square feet for ingress/egress; and
b. One JADU within the proposed space of a single-family dwelling or existing space of a single-family dwelling that may include an expansion of not more than 150 square feet for ingress/egress; and
c. One detached, new construction, ADU of no more than 800 square feet of interior livable space that does not exceed four-foot side and rear yard setbacks that meets the height requirements of this section on a lot with a proposed or existing single-family dwelling3.

3. Lots with existing multifamily dwellings may have up to eight detached ADUs, or as many detached ADUs as there are primary dwelling units on the lot, whichever is less4.

4. Lots with an existing multifamily dwelling may have shall have a number of internal or attached ADUs equal to twenty -five percent of the existing multifamily dwelling units.

Fractions of units of one -half and above shall be rounded up. Accessory dwelling units may include portions of dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages; provided, that each unit complies with state b uilding standards for dwellings. At least one accessory dwelling unit shall be permitted per lot within existing multifamily dwellings. Not more than two detached accessory dwelling units shall be permitted on lots with existing multifamily dwellings5.

5. Lots with a proposed multifamily dwelling can have up to two detached ADUs.

63. Relationship to Primary Dwelling.
a. An accessory dwelling unit may be within, attached to, or detached from the primary dwelling. Attachment to the primary dwelling shall be by sharing a common interior wall or common roof. No passageway (as defined in California Government Code Section 66314 65852.2) is required in conjunction with the construction of an accessory dwelling unit.

3 SB 543
4 SB 1211
5 Section removed per SB 1211
b. An accessory dwelling unit shall have its own kitchen, bathroom facilities, and entrance separate from the primary dwelling.
c. The city shall allow junior accessory dwelling units as defined in California Government Code Section 66313 65852.22 to be constructed within the walls of the proposed or existing single -family residence with a separate entrance from the main entrance to the primary dwelling, an efficiency kitchen as defined herein, and shared or independent bathroom facilities.

74. Height.
a. A detached accessory dwelling unit is limited to sixteen feet in height. A detached accessory dwelling unit may be up to eighteen feet in height if it is (i) within one -half mile walking distance of a major transit stop or high quality transit corridor, o r (ii) on a lot that has an existing multifamily, multistory dwelling. b. A detached accessory dwelling unit shall also be allowed an additional two feet in height to accommodate a roof pitch that is aligned with the roof pitch of the primary dwelling unit for a total height of eighteen feet67.
cb. An attached accessory dwelling unit is limited to twenty -five feet in height or the height limitation that applies to the primary dwelling, whichever is lower.

85. Maximum Unit Size.
a. The maximum floor area for a studio or one-bedroom accessory dwelling unit shall be eight hundred fifty square feet of interior livable space, except accessory dwelling units which do not conform to subsections (C)(74)(a), (C)(74)(cb) and (C)(96)(c) of this section which shall be limited to eight hundred square feet8.
b. The maximum floor area for an accessory dwelling unit of two bedrooms or more shall be one thousand square feet of interior livable space.
c. In situations where an ADU or JADU is within the proposed space of a single -family dwelling or existing space of a single -family dwelling or accessory structure existing accessory structure is being converted to an accessory dwelling unit , an additional one hundred fifty square feet are allowed for expansion beyond the physical dimensions of the accessory dwelling unit, limited to providing ingress and egress only.

6 Additional comment letter received on 2.17.26
7 HCD review of draft ordinance, dated September 17, 2025 (Comment 3). 8 SB 543
bd. The maximum floor area of a junior accessory dwelling unit shall be five hundred square feet of interior livable space9.
e. There is no maximum unit size requirement the following types of ADUs:
i. An ADU developed from existing space within a single -family dwelling or accessory structure;
ii. An ADU developed within a proposed single-family dwelling; iii. An ADU developed within portions of an existing multifamily dwelling structure, or iv. A detached ADU developed on a multifamily parcel10.

96. Property Line Setbacks.
a. No setback is required for an existing accessory structure or living area as defined herein that is converted to an accessory dwelling unit. b. No setback is required for an accessory dwelling unit constructed in the same location and the same footprint as an existing accessory structure. c. A minimum setback of four feet from the side and rear property lines is required for an accessory dwelling unit twenty -five feet in height or less. If there is a recorded constraint, such as a no -build easement (e.g., public utility easement), then the re corded constraint prevails in determining the setback. Front yard setbacks shall be the same as the underlying zoning district11. An accessory dwelling unit in excess of twenty-five feet in height shall comply with setback requirements of the main structure of the applicable zoning district.
d. . No standard in Section 17.42.040 shall inhibit the development of one ADU with no more than 800 square feet of interior livable space, and with four -foot side and rear yard setbacks, in compliance with all other development standards in this section. 107. Parking.
a. Except as specified in this subsection, on -site parking for accessory dwelling units shall comply with all parking requirements in Chapter 17.44. b. On-site parking is not required for junior accessory dwelling units. c. In addition to on -site parking spaces required for the primary dwelling, one on -site parking space shall be provided for each accessory dwelling unit per unit or bedroom, whichever is less.

9 SB 543
10 Additional comment letter received on 2.17.26
11 SB 477
d. On-site parking spaces for accessory dwelling units may be covered or uncovered, may be tandem, and may be located within the front, side, or rear setback areas unless there is a specific site or regional condition related to fire or life safety that woul d make parking in setback areas unsafe.
e. No on-site parking is required for an accessory dwelling unit in the following cases:
i. The accessory dwelling unit is located within one -half mile walking distance of public transit.
ii. The accessory dwelling unit is located within a National Register Historic District, in architecturally or historically significant areas or other historic district officially designated by the city council.
iii. The accessory dwelling unit is constructed within the primary residence or within an accessory structure.
iv. On-street parking permits are required but not offered to the occupant of the accessory dwelling unit.
v. A car-share vehicle pick-up/drop-off location is located within one block of the accessory dwelling unit.
vi. The accessory dwelling unit is part of an application to create a new single-family or multifamily dwelling on the same lot.
vii. An off -street parking space is not required when a garage, carport, covered parking structure or uncovered parking space is demolished in conjunction with the construction of an ADU or converted to an ADU.12
viii. The ADU is constructed within a portion of an existing multifamily dwelling structure or is a detached ADU on a multifamily parcel13. 118. Utility Connections.
a. General. An accessory unit shall not be considered a new residential use for the purposes of calculating local agency connection fees or capacity charges for utilities, including water and sewer service, unless constructed in conjunction with a new single - family residence.

12 SB 1211 and HCD review of the ordinance, dated September 19, 2025 (comment #6) 13 Additional comment letter received on 2.17.26
b. Accessory Units in Existing Space. For accessory units within an existing primary dwelling, garage, or other accessory structure, the city shall not require an applicant to install a new or separate utility connection directly between the accessory unit and utility or impose a related connection fee or capacity charge.
c. Attached and Detached Accessory Dwelling Units. Consistent with California Government Code Section 66324, a utility connection may be subject to a connection fee or capacity charge that shall be proportionate to the burden of the proposed accessory dwelling unit, based upon either its size or the number of its plumbing fixtures, upon the water or sewer system. This fee or charge shall not exceed the reasonable cost of providing this service.
d. Fire Sprinklers. Accessory units shall not be required to provide fire sprinklers if they are not required for the primary residence dwelling. The construction of a dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling. The prohibition on requiring fire sprinkler installation described above shall also apply to JADUs.14
129. Septic Tank Disposal System.
a. In areas where septic tank disposal systems are allowed due to lack of sanitary sewer lines, detached accessory dwelling units shall be served by separate and independent septic tank sewage disposal systems. All leach lines shall be designed and installed in accordance with current septic system requirements of the county of Monterey health department.
b. In other areas of the city, accessory dwelling units shall be connected to the sanitary sewer system through the existing lateral line serving the primary dwelling.

10. Deed Restrictions.
a. Deed Restriction Required. Before obtaining a building permit for an accessory unit, the property owner shall file with the county recorder a declaration of restrictions containing a reference to the deed under which the property was acquired by the current owner. The deed restriction shall state that:
i. The accessory unit may not be sold separately from the primary dwelling. ii. The accessory unit is restricted to the approved size as set forth in subsection (C)(5) of this section.

14 SB 543
iii. The accessory unit shall not be rented for a period of less than thirty-one days. iv. Binding on Future Owners. The above declarations shall be binding upon any successor in ownership of the property. Lack of compliance shall be cause for code enforcement and/or revoking the city’s approval of the accessory unit. 1311. Fees.
a. Impact fees shall not be imposed on an accessory dwelling unit less than seven hundred fifty square feet of interior livable area in size. b. Impact fees charged for an accessory dwelling unit of seven hundred fifty square feet or more shall be charged proportionately in relation to the square footage of the primary dwelling. (Ord. 2023-06 § 3 (Exh. 1), 2023; Ord. 2021-05 § 10, 2021; Ord. 2020-07 § 2, 2020; Ord. 2020-06 § 2 (Exh. A), 2020)

14. Ownership and Rental Restrictions.
a. ADUs and JADUs cannot be rented for terms of fewer than 30 days. b. An ADU may not be sold separately from the primary dwelling unless done so in accordance with Government Code Section 66341.

15. Occupancy-State of Emergency
a. In counties subject to a gubernatorial state of emergency on or after February 1, 2025, a certificate of occupancy for an ADU can be issued even if the primary dwelling has not yet been rebuilt if certain conditions are met including but not limited to if the primary dwelling was substantially damaged or destroyed by an event referenced in the state of emergency proclamation.15

16. Additional Junior Dwelling Unit (JADU) Requirements16 a. JADU Entryway
If a permitted junior accessory dwelling unit does not include a separate bathroom, the permitted junior accessory dwelling unit shall include a separate entrance from the main entrance to the structure, with an interior entry to the main living area. b. JADU Tenancy
(1) The owner of the primary dwelling must reside on the property, either in the JADU or the primary dwelling.

15 AB 462
16 AB 1154
(2) The above requirement for JADUs shall be lifted if the JADU has its own private bathroom, allowing a property owner to rent out both the primary dwelling and the JADU. c. JADU Efficiency Kitchen
Junior accessory dwelling unit shall include an efficient kitchen, which shall include all of the following:
(1) A cooking facility with appliances.
(2) A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit. d. Deed Restrictions for JADUs
A recorded deed restriction is required for the creation of a JADU and shall include the following:
(1) A prohibition on the sale of the JADU separate from the sale of the single-family dwelling, including a statement that the deed restriction may be enforced against future purchasers; and
(2) A restriction on the size and attributes of the JADU that conforms with this section.

Section 3. California Environmental Act (CEQA).

The proposed project is exempt from the California Environmental Quality Act (CEQA) under Section 15061(b)(3) as the adoption of the ordinance will have no reasonable possibility that the project will have a significant effect on the environment. Because the proposed action merely updates the Municipal Code to clarify that certain housing types are allowed in certain residential zones, subject to a use permit and project-specific environmental review as necessary, there is no possibility that the activity in question may have a significant effect on the environment. No further environmental review is necessary.

Section 4. Severability.

It is the intent of the City Council of the City to supplement applicable state and federal law and not to duplicate or contradict such law and this ordinance shall be construed consistently with that intention. If any section, subsection, subdivision, par agraph, sentence, clause, or phrase of this ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases of this ordinance, or its application to any other person or circumstance. The City Council declares that it would have adopted each section, subsection, subdivision, para graph, sentence, clause, or phrase independently, even if any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases were declared invalid or unenforceable.

Section 5. Effective Date.

This ordinance shall be in full force and effect thirty (30) days following its passage and adoption, as certified by the City Clerk.

This ordinance was introduced and read on the 18th day of February 2026 and was adopted on the 3rd day of March 2026, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

_______________________________
Bruce Delgado, Mayor
ATTEST:

_______________________________
Anita Sharp, Deputy City Clerk

EXHIBIT A FINDINGS

Staff finds that this project:

General Plan Compliance
1) General Plan Policy 2.31
“It is the City of Marina’s intent to promote construction of new housing that is environmentally and socially responsible and that adheres to the following policies:” a. General Plan Policy 2.31.1
“In order to promote the social and fiscal well-being of the community, new housing shall be phased and shall provide for the needs of all economic groups, particularly with respect to matching the needs of the City’s current and future workforce” b. General Plan Policy 2.31.4
“New housing shall accommodate a broad range of lifestyles, including those associated with the presence of CSUMB and the MBEST Center, with people wishing to combine living and work space, and with retired residents who will make up an increasing proportion of the region’s population in the future. ”
c. General Plan Policy 2.31.6
“New housing shall be constructed at densities and in patterns which conserve land, reduce reliance on the private automobile, and result in walkable, attractive neighborhoods. ”

d. General Plan Policy 2.31.8
“New housing shall be integrated into the fabric of the City in such a way that it complements existing housing areas and contributes to the overall stability, image, and sense of community of the City.
e. General Plan Policy 2.31.11
“A fair share of infrastructure and public service costs shall be borne by new housing.

However, to promote housing affordability, the City shall not apply development fees or other levies to new residential development that would require such development to pay a disproportionate share of municipal costs for facilities and services which mitigate pre - existing problems or benefit both existing and future residents of the entire community. ”

Evidence: The development of ADUs and JADUs is consistent with General Plan Policy 2.31 in that accessory units are more environmentally sustainable, more accessible to a broad range of income groups than a traditional single -family house and integrate wel l into existing neighborhoods.

Zoning Compliance
2) Lateral consistency with Title 17, Section 17.42.040 Evidence:The amended ordinance is consistent with the State law and the City’ s adopted standards for accessory units.
4853-5859-3245v2/202027-0001
March 3, 2026 Item No. 11a

Honorable Mayor and Members City Council Meeting
Of the Marina City Council of March 3, 2026

CITY COUNCIL CONDUCT A PUBLIC HEARING, HOLD A SPECIAL

ELECTION, AND CONDUCT RELATED PROCEEDINGS FOR THE CITY
OF MARINA COMMUNITY FACILITIES DISTRICT NO. 202 6-1 (MARINA STATION) AND AN IMPROVEMENT AREA NO. 1 THEREIN AND TO

DESIGNATE A FUTURE ANNEXATION AREA

RECOMMENDATION:

It is recommended that the City Council take the following actions:

1. Receive and file the Community Facilities District Report prepared by Goodwin Consulting.

2. Conduct a public hearing regarding the establishment of Community Facilities District No. 2026 -1 (Marina Station) , designation of Improvement Area No. 1 and a Future Annexation Area, and the levy of special taxes within the CFD, and types of public facilities and services to be funded by the special taxes.

3. Adopt Resolution No. 2026 -_, of formation establishing the Marina Station CFD (the “ROF”) and calling a special election regarding the formation of the CFD and establishing an appropriations limit for the CFD.

4. Adopt Resolution No. 2026-_, determining the necessity to incur bonded indebtedness within said community facilities district and Improvement Area No. 1 and calling a special election to authorize such bonded indebtedness

5. Confirm all ballots have been received; receive City Clerk certification of election results.

6. Adopt Resolution No. 2026-_, certifying election results.

7. Adopt Ordinance No. 2026-_, levying the special taxes.

8. Approve an Acquisition Agreement with Marina Station Phases 1 and 2, LLC a Delaware limited liability company and authorizing the City Manager or designee to execute such agreement, subject to the review and approval of the City Attorney.

BACKGROUND:

The City of Marina and Creekbridge Homes, LLC (“Original Developer”) originally entered into a Development Agreement dated March 4, 2008, related to the Marina Station project (the "Development Agreement"). The Development Agreement provided the Original Developer with the opportunity to develop a 320-acre site into a mixed-use project on either side of Del Monte Avenue at the northern boundary of the City of Marina. The Development Agreement stipulated the terms and conditions for development of 1,360 resi dential units (887 single family units and 473 multifamily units), approximately 60,000 square feet of retail space, approximately 144,000 square feet of office space, approximately 652,000 square feet of business park/industrial, parks and open space (the "Development" or “Project”). The Development will include 53 acres of Parks and Open Space, and 83 acres of deed restricted open space with a habitat restoration plan. The project approvals include requirements for the development of affordable housing and the reservation of a parcel if needed for the development of a fire station. As part of the approval of the Development Agreement, the City Council certified the EIR, approved the General Plan Amendments, the Specific Plan, Zoning Ordinance Map Amendments, a Vesting Tentative Map (co llectively the "Project Approvals"), and Design Review.

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The Original Developer, Creekbridge Homes of Salinas, California, dropped out of the Project in 2010.

Subsequently, the owners of the property began seeking a new developer to move the Project forward.

The property was sold in 2017 to new property owners. The new ownership group brought in 3rd Millennium Partners, Inc. of San Jose ("3MP") to act as the developer of the Development in 2019. 3MP, acting as the Developer, has been working with the City since that time to move the Development forward. The property has subsequently been transferred to Marina Station Phase 1 and 2 LLC, a Delaware limited liability company (“Owner”).

In 2022, the City Council approved a First Amendment to the Development Agreement that among other things recognized the new ownership and development entities, extended the term of the Development Agreement until March of 2036 , re quired impact fees in effect at the time of applications for building permits to be paid and to require that the Developer update the Fiscal Neutrality Study that is required pursuant to the City’s General Plan prior to issuance of the Final Map for the Project. The City obtained an update of the Fiscal Neutrality Study in 2022 which found that the Development was fiscally neutral to the City assuming that community facilities districts were formed to fund costs of maintenance of all landscaping, lighting, parks and roadways that are the responsibility of the City to maintain and one half of the costs of operating a fire station serving the Development.

The City has received a petition and a waiver from the Owner of certain CFD formation and election procedures and timeframes from the Owner requesting the City to create a new Community Facilities District to be designated City of Marina Community Facilities District No. 202 6-1 (Marina Station) to levy a special tax to pay for the cost of acquiring or constructing certain public facilities, providing certain services and paying for certain incidental expenses and to pay debt service on bonded indebtedness.

The Owner has requested that the City Council designate an improvement area with the boundaries shown in Exhibit A of the Resolution of Intention to be known as “Improvement Area No. 1 of City of Marina Community Facilities District No. 2026-1 (Marina Station)” (“Improvement Area No. 1”) and designate the property shown in Exhibit A to the Resolution of Intention as “Future Annexation Area” as territory proposed for future annexation to the Community Facilities District (the “Future Annexation Area”). Improvement Area No. 1 will contain 273 residential units and consists of Phase 1 and 2 of the Marina Station Project.

Property within such Future Annexation Area may be annexed as additional improvement areas (“Future Improvement Area(s)”) within the Community Facilities District and be subjected to the special tax of the Community Facilities District with the unanimous consent and approval of the owner or owners of the parcel or parcels at the time of annexation (the “Unanimous Consent and Approval”) and the approval of the City Council, acting as the legislative body of the Community Facilities District (the “Legislative Body”), or in compliance with other procedures established by the Act. It is important to emphasize that for the Development to be Fiscally Neutral a CFD is required to fund facilities and services for all 8 phases of the Development.

ANALYSIS:

The proposed annual amount of the maximum special taxes to be levied to fund facilities and services is estimated to range from $2,761 to $4,458 for a Single-Family Detached Property and between $44,580 to $70,841 per acre for Multi-Family Residential Property, and for undeveloped property , depending on the tax zone in which such property is located. The Marina Station CFD will include 5 tax zones as shown in Table 1 of the rate and method of apportionment shown on Attachment No. 1 page 8 . The special tax amounts described above will be escalated each year according to the construction cost index to adjust for inflation.

4853-5859-3245v2/202027-0001
The types of Facilities that are proposed to be financed with the proceeds of special taxes and bonds issued by the Community Facilities District consist of backbone infrastructure needed for new development, such as roadway, bridge, sewer, water, reclaimed water, storm drain, street and parkway landscaping, curb and gutter, medians, median landscaping, traffic signals, entry signage, parks, trails, and appurtenances and appurtenant work, and development impact fees that are used by the City to construct in frastructure, including any other facilities that are necessary for development of the property within the boundaries of the Community Facilities District.

The Engineering staff and City Manager have reviewed the estimate to fund services prepared by the Owner and their consultant . The Services to be funded are listed in Exhibit B of the Resolution of Intention and include the following:

(i) maintenance of parks, parkways, park lighting, sidewalks, signage, landscaping in public areas, easements or right of way and open space; (ii) maintenance of streets and roadways, sidewalks, curbs, and gutters; and (iii) public safety services including fire protection and fire suppression.

January 21, 2026 Resolution of Intention Meeting:

At the January 21, 2026 Meeting the City Council adopted Resolution No. 2026-09 and Resolution No. 2026 -10 declaring the intention to establish CFD No. 2026 -1 (Marina Station) and an Improvement No. 1 therein and to designate a future annexation area and further declaring its intention to incur bonded indebtedness. It also approved setting a date to conduct a Public Hearing on March 3, 2026 at 6:30 p.m. to allow any interested person, including all persons owning lands or registered to vote within the CFD to appear and be heard.

Public Hearing and Tonight’s Actions:

The City Council has initiated proceedings to consider the establishment of the CFD and an Improvement No. 1 therein and to designate a future annexation area under the Act. Tonight’s Public Hearing will provide the public an opportunity to provide testimony regarding the establishment of the CFD, the levy of special taxes within the CFD, and the types of facilities and public services to be funded by the special taxes. In addition, the owners of land within the CFD may submit written protests against the formation of the CFD, the furnishing of facilities and services within the CFD, or levying the special tax. If a majority protest exists, the City would be required to suspend all or a part of the CFD formation proceedings. Because the landowner within the CFD submitted a Consent and Waiver documentation regarding the proceedings to form the CFD, staff does not expect the landowner to protest the formation of the CFD. If no majority protest has been submitted by the close of the public hearing, the Council m ay take the remaining actions necessary for the CFD formation proceedings, which are as follows:

1. Receive and file the Community Facilities District Report. The CFD Report was prepared by Goodwin Consulting and provides a description of facilities and Services to be funded by the CFD, specifies the proposed boundaries of the CFD, list the costs estimates for facilities and services to be funded, and includes the Rate and Method of Apportionment of Special Taxes.

2. Adopt the Resolution of Formation. This resolution forms the CFD, establishes the boundaries of the CFD, approves the rate and method of apportionment of the special taxes, and approves the list of public facilities and public services authorize to be funded by the special taxes. The Resolution of Formation also calls a special landowner election to be conducted by the City Clerk, as the election official for the City. The registrar of voters has certified that there are no registered voters within the proposed CFD, thus the vote will be by the owners of land in the CFD.
4853-5859-3245v2/202027-0001

3. Adopt the Resolution determining the necessity to incur bonded indebtedness within said CFD and Improvement Area No.1 and calling an election therein. The bond authorization limit for Improvement Area No.1 is in amount not to exceed $7,600,000.

4. Conduct Landowner Election. The City Clerk will then open the ballots and announce the results of the election. Three propositions are set forth in the landowner ballot: authorizing the annual special tax levy within the CFD to pay for the authorized public services , authorizes the issuance of Bonds in amount not to exceed $7,600,000 and approving an annual appropriations limit for the CFD. Under the Act, these propositions must receive the affirmative vote of two-thirds of the votes cast. For the election to be held on March 3, 2026, the City Clerk must have received ballots from the owner of land in the CFD; otherwise, the election will be held on the date the City Clerk has received all such ballots.

5. Adopt Resolution Declaring Results of Special Landowner Election and Directing Recording of Notice of Special Tax Lien. This resolution confirms the results of the election and directs recording of a notice of special tax lien, which is recorded against the parcels in the CFD to put future owners on notice of the lien of the special taxes. The City Clerk will complete the Canvass and Statement of Result of Election attached as an exhibit to this resolution.

6. Introduce Ordinance Levying Special Taxes. Adopt a motion to introduce and waive the first reading of the Ordinance authorizing the levy of special taxes within Improvement Area No. 1

7. Approve an Acquisition Agreement with Marina Station Phases 1 and 2, LLC a Delaware limited liability company.

CONCLUSION AND NEXT STEPS:

Upon the successful conclusion of these proceedings, the CFD will be formed, and the City will be authorized to levy special taxes to fund the specific public facilities and public services described in the Resolution of Formation. The next steps to complete the formation of the CFD are:

1. Record Notice of Special Tax Lien (within 15 days after tonight’s meeting)

2. Introduce for 2nd reading an ordinance authorizing the levy of special taxes at the March 17th City Council meeting

3. 30 days later: Special Tax Ordinance becomes effective

The resolutions and related documents have been prepared and reviewed by the City’s consultant team, which includes bond/special counsels (Stradling Yocca Carlson & Rauth LLP and Goldfarb & Lipman LLP), city attorney (Shute , Mihaly & Weinberger LLP ), municipal advisor (Fieldman, Rolapp and Associates) and special tax consultant (Goodwin Consulting).

FISCAL IMPACT:

The Keyser Marston Fiscal Impact study estimates Marina Station will generate a net surplus to the City’s General Fund and Gas Tax Funds approximating $1.7 million per year upon buildout. The construction of Marina Station will also generate one-time revenues to both the City’s General Fund and Impact Fee Fund. Formation of the Marina Station CFD is necessary to achieve fiscal neutrality for the project.

CONCLUSION:

This request is submitted for City Council consideration and possible action.

_______________________
Tori Hannah
Finance Director
City of Marina

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REVIEWED/CONCUR:

_____________________
Layne P. Long
City Manager
City of Marina

____________________
Rene A. Ortega
City Attorney
City of Marina

Attachments:

1. CFD Report

2. City Council Resolution of Formation

3. City Council Resolution to incur bonded indebtedness

4. City Council Resolution Declaring the Results of Special Landowner Election

5. Ordinance Levying Special Taxes

6. Acquisition Agreement

2031211.1
City of Marina
Community Facilities District No. 2026-1
(Marina Station)

COMMUNITY FACILITIES DISTRICT REPORT

CONTENTS
Introduction
A. Description of Facilities and Services
B. Proposed Boundaries of the Community Facilities District C. Cost Estimates
D. Rate and Method of Apportionment of Special Tax es
* * * * * * * * * * * *
EXHIBIT A - Description of the Proposed Facilities and Proposed Services EXHIBIT B - Boundary Map
EXHIBIT C - Cost Estimates
EXHIBIT D - Rate and Method of Apportionment of Special Taxes, Improvement Area No. 1 Attachment 1
6 City of Marina
Community Facilities District No. 2026-1
(Marina Station)

INTRODUCTION

On January 21, 2026, the City Council of the City of Marina adopted a resolution entitled “Resolution of the City Council of the City of Marina, California, Declaring its Intention to Establish City of Marina Community Facilities District No. 2026-1 (Marina Station) and an Improvement Area Therein, to Designate a Future Annexation Area, to Authorize the Levy of a Special Tax to Pay the Cost of Acquiring or Constructing Certain Public Facilities, Providing Certain Services and Paying for Certain Incidental Expenses and to Pay Debt Service on Bonded Indebtedness” (the “Resolution of Intention”), stating its intention to form the City of Marina Community Facilities District No. 2026-1 (Marina Station) (the “CFD”) pursuant to the Mello-Roos Community Facilities Act of 1982, Sections 53311 et. seq., California Government Code (the “Act”) to finance certain municipal services (the “Services”) and facilities (the “Facilities”) by levying special taxes (the “Special Taxes”) in the area of the CFD.

In the Resolution of Intention, the Council expressly ordered the preparation of a written report (the “Report”), for the CFD containing the following:

1. A description of the Facilities and Services by type which will be required to adequately meet the needs of the CFD , each Improvement Area, and every Improvement Area created out of the Future Annexation Area; and

2. An estimate of the fair and reasonable cost of the Facilities including the cost of acquisition of lands, rights-of-way and easements, any physical facilities required in conjunction therewith and incidental expenses in connection therewith, including the costs of the proposed bond financing and other debt and all other related costs as provided in Section 53345.3 of the Act.

3. An estimate of the fair and reasonable cost of the services and incidental expenses in connection therewith, and all other related costs.

For particulars, reference is made to the Resolution of Intention for the CFD, as previously approved and adopted by the Council.

NOW, THEREFORE, the undersigned does hereby submit the following data:

A. DESCRIPTION OF FACILITIES AND SERVICES. A general description of the proposed facilities and proposed services is set forth in Exhibit “A” attached hereto and hereby made a part hereof.

B. PROPOSED BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT. The proposed boundaries of the CFD are those properties and parcels in which special taxes may be levied to pay for the Facilities and the costs and expenses of the Services. The proposed boundaries of the CFD and the specific boundaries of Improvement Area No. 1 are described on the boundary map on file with the City Clerk, to which reference is hereby made.

Parcels within the Future Annexation Area shall be annexed to the CFD only with the unanimous approval of the owner or owners of each parcel or parcels at the time that parcel or Attachment 1
7 those parcels are annexed. The proposed boundaries of the Future Annexation Area are also described on the map of the CFD on file with the City Clerk, to which reference is hereby made.

C. COST ESTIMATES. The cost estimates for the proposed Facilities and proposed Services for the CFD are set forth in Exhibit “C” attached hereto and hereby made a part hereof.

D. RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX ES. All property located within the CFD boundaries, unless exempted by law or by the Rate and Method of Apportionment of Special Tax es (the “ RMA”), shall be taxed for the purpose of financing the Facilities and the Services. The Council will annually determine the actual amount of the special tax levy based on the method and subject to the Maximum Special Tax rates contained in the RMA. The RMA for Improvement Area No. 1 is provided in Exhibit “D”, attached hereto and hereby made a part hereof.

Attachment 1
8 EXHIBIT A

City of Marina
Community Facilities District No. 2026-1
(Marina Station)

DESCRIPTION OF PUBLIC FACILITIES AND SERVICES

TYPES OF PUBLIC FACILITIES
The types of Facilities that are proposed to be financed by City of Marina Community Facilities District No. 2026 -1 (Marina Station) (the “Community Facilities District”) with the proceeds of special taxes and bonds issued by the Community Facilities Distr ict consist of facilities authorized to be financed by the Mello -Roos Community Facilities Act of 1982 (as incorporated and adopted into the City of Marina Municipal Code, with certain amendments, by Chapter 3.35 of the City of Marina Municipal Code) (the “Act”) (including, but not limited to, backbone infrastructure needed for new development, such as roadway, bridge, sewer, water, reclaimed water, storm drain, street and parkway landscaping, curb and gutter, medians, median landscaping, traffic signals, entry signage, parks, and trails, and appurtenances and appurtenant work, and development impact fees that are used by the City to construct infrastructure) that are necessary or desirable for development of the property within the boundaries of the Communi ty Facilities District.

The description of Facilities described above is general in nature. The final nature and location of the Facilities will be determined upon preparation of final plans and specifications.

TYPES OF SERVICES
The services which may be funded with proceeds of the special tax of the Community Facilities District, consist of the services authorized to be funded by Section 53313 of the Act, including but not limited to the following (collectively, the “Services”):
(i) maintenance of parks, parkways, park lighting, sidewalks, signage, landscaping in public areas, easements or right of way and open space; (ii) maintenance of streets and roadways, sidewalks, curbs, and gutters; and (iii) public safety services including fire protection and fire suppression.

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Incidental Expenses” as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs of services as determined by the Community Facilities District Administrator. Capitalized terms used and not defined herein shall have the meanings set forth in the Rate and Method of Apportionment of Special Taxes for the Community Facilities District.

Attachment 1
9 EXHIBIT B

City of Marina
Community Facilities District No. 2026-1
(Marina Station)

BOUNDARY MAP

Reference is hereby made to the map on file in the office of the City Clerk for a description of the boundaries of the CFD.

Attachment 1
10 EXHIBIT C

City of Marina
Community Facilities District No. 2026-1
(Marina Station)

COST ESTIMATES

FY 2025-26 FACILITIES COST

Cost Item
Streets
Storm Drain
Sanitary Sewer
Potable Water
Recycled Water
City Parks
Del Monte Boulevard
NB HWY 1 Intersection
SB HWY 1 Intersection
Tate Park Lift Station
15% Contingency on all Projects
Total Estimated Facilities Cost
Annual Costs
$21,448,255
$10,239,715
$6,228,100
$9,364,350
$345,950
$2,678,940
$1,550,713
$500,000
$300,000
$2,554,650
$8,281,601
$63,492,274

FY 2025-26 SERVICES COST

Cost Item
Street Maintenance
Sidewalk Maintenance
Curb & Gutter Maintenance
Vertical Curb Maintenance
Park Maintenance
Fire Services Costs
Administration Costs
Total Estimated Services Cost
Annual Costs
$537,605
$47,077
$26,739
$40,990
$123,000
$1,211,790
$36,040
$2,023,241

Attachment 1
11 EXHIBIT D

City of Marina
Community Facilities District No. 2026-1
(Marina Station)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES

Attachment 1
12 IA No. 1, City of Marina CFD No. 2026-1 1 January 6, 2026 IMPROVEMENT AREA NO. 1

CITY OF MARINA
COMMUNITY FACILITIES DISTRICT NO. 2026-1
(MARINA STATION)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES

Special Taxes applicable to each Assessor’s Parcel in Improvement Area No. 1 of the City of Marina Community Facilities District No. 2026-1 (Marina Station) shall be levied and collected according to the tax liability determined by the City Council through the application of the appropriate amount or rate for Taxable Property, as described below. All property in Improvement Area No. 1, unless exempted by law or by the provisions of Section G below, shall be taxed for the purposes, to the extent, and in the manner herein provided, including property subsequently annexed to the CFD unless a separate Rate and Method of Apportionment is adopted for the annexation area.

A. DEFINITIONS

The terms hereinafter set forth have the following meanings:

“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Map or other parcel map recorded at the County Recorder’s Office.

“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311), Part 1, Division 2, of Title 5 of the Government Code of the State of California.

“Administrative Expenses” means any or all of the following: the fees and expenses of any fiscal agent or trustee (including any fees or expenses of its counsel) employed in connection with any Bonds, and the expenses of the City in carrying out its duties with respect to Improvement Area No. 1, the CFD and the Bonds, including, but not limited to, the levy and collection of Special Taxes, the fees and expenses of its counsel, charges levied by the County in connection with the levy and collection of Special Taxes, costs related to property owner inquiries regarding the Special Taxes, costs associated with appeals or requests for interpretation associated with the Special Taxes and this RMA, amounts needed to pay rebate to the federal government with respect to Bonds, costs associated with complying with continuing disclosure requirements for the City and any major property owners or other obligated parties, costs associated with foreclosure and collection of delinquent Special Taxes, and all other costs and expenses the City and the County in any way related to the establishment or administration of Improvement Area No. 1 and the CFD.

“Administrator” shall mean the person or firm designated by the City to administer the Special Taxes according to this RMA.

“Affordable Housing Unit” means any Residential Unit on a Parcel of Single Family Property for which a deed restriction has been recorded on title of the property that limits the rental rate or sales price or otherwise restricts the affordability of the Residential Unit or income of its occupants.

It is incumbent upon the builder, developer, or property owner to make the Administrator aware Attachment 1
13 IA No. 1, City of Marina CFD No. 2026-1 2 January 6, 2026 of such deed restriction. Residential Units on Welfare Exemption Property shall be categorized as Welfare Exemption Property for purposes of this RMA, not as Single Family Property or Multi- Family Property.

“Assessor’s Parcel” or “Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel number.

“Assessor’s Parcel Map” means an official map of the County Assessor designating Parcels by Assessor’s Parcel number.

“Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by the CFD.

“Authorized Services” means the public services authorized to be funded, in whole or in part, by the CFD.

“Base Facilities Special Tax” means, for any Land Use Category, the applicable Facilities Special Tax initially identified in Table 1 of Section C, as may be adjusted pursuant to Section D.

“Bonds” means bonds or other debt (as defined in the Act), whether in one or more series, secured by the Facilities Special Tax and issued or assumed by or for Improvement Area No. 1 to fund Authorized Facilities.

“Capitalized Interest” means funds in any capitalized interest account available to pay debt service on Bonds.

“CFD” means the City of Marina Community Facilities District No. 2026-1 (Marina Station).

“CFD Formation” means the date on which the Resolution of Formation to form the CFD and Improvement Area No. 1 was adopted by the City Council.

“City” means the City of Marina.

“City Council” means the City Council of the City of Marina, acting as the legislative body of the CFD.

“County” means the County of Monterey.

“Developed Property” means, in any Fiscal Year, all Parcels of Taxable Property that are not Taxable Owners Association Property, Taxable Public Property, or Taxable Welfare Exemption Property for which a use permit or building permit for new construction of a residential or non- residential structure (which shall not include a permit issued solely for construction of the foundation if another permit remains to be issued for vertical construction of the building) was issued prior to June 1 of the preceding Fiscal Year.

“Development Class” means, individually, Developed Property, Final Map Property, Undeveloped Property, Taxable Owners Association Property, Taxable Welfare Exemption Property, and Taxable Public Property.

Attachment 1
14 IA No. 1, City of Marina CFD No. 2026-1 3 January 6, 2026 “Expected Land Uses” means, for any Tax Zone, the number of Affordable Housing Units, Market Rate Units, and Acreage of Multi-Family Property and Other Property expected within that Tax Zone at CFD Formation, as identified in Attachments 1 and 2 of this RMA. Pursuant to Section D of this RMA, the Administrator shall update Attachment 2 each time there is a Land Use Change. Such update shall be maintained internally by the Administrator and shall not require recordation of an amended RMA.

“Expected Maximum Facilities Special Tax Revenues” means the aggregate Facilities Special Tax that can be levied based on application of the Base Facilities Special Tax to the Expected Land Uses. The Expected Maximum Facilities Special Tax Revenues at CFD Formation are shown in Attachment 2 and may be revised pursuant to Section D and H below. Such update shall be maintained internally by the Administrator and shall not require recordation of an amended RMA.

“Facilities Special Tax” means a special tax levied in any Fiscal Year to pay the Facilities Special Tax Requirement.

“Facilities Special Tax Requirement” means the amount necessary in any Fiscal Year (i) to pay principal and interest on Bonds which are due in the calendar year which begins in such Fiscal Year, (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement, liquidity support, and rebate payments on the Bonds; (iii) to replenish reserve funds to the extent such replenishment has not been included in a computation of the Facilities Special Tax Requirement in a previous Fiscal Year, (iv) to cure any delinquencies in the payment of principal or interest on Bonds which have occurred in the prior Fiscal Year, (v) to pay Administrative Expenses, and (vi) to pay the costs of Authorized Facilities to be funded directly from Facilities Special Tax proceeds to the extent that paying directly for such costs does not increase the Facilities Special Taxes levied on Final Map Property or Undeveloped Property. The amounts referred to in clauses (i) and (ii) of the preceding sentence may be reduced in any Fiscal Year by (i) interest earnings on or surplus balances in funds and accounts for Bonds to the extent that such earnings or balances are available to apply against debt service pursuant to the Indenture, (ii) in the sole and absolute discretion of the City, proceeds from the collection of penalties associated with delinquent Facilities Special Taxes, and (iii) any other revenues available to pay debt service on the Bonds as determined by the Administrator.

“Final Map” means a final map, or portion thereof, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq) that creates SF Lots or a condominium plan recorded pursuant to California Civil Code 1352 that, in either case, creates individual lots for which building permits may be issued without further subdivision. The term “Final Map” shall not include any large-lot subdivision map, Assessor’s Parcel Map, or subdivision map or portion thereof, that does not create SF Lots, including Assessor’s Parcels that are designated as remainder parcels.

“Final Map Property” means, in any Fiscal Year, all SF Lots created within Final Maps that had recorded prior to June 1 of the preceding Fiscal Year and which have not yet become Developed Property.

“First Bond Sale” means issuance of the first series of Bonds secured, in whole or in part, by Facilities Special Taxes levied and collected from Parcels of Taxable Property in Improvement Area No. 1.

Attachment 1
15 IA No. 1, City of Marina CFD No. 2026-1 4 January 6, 2026

“Fiscal Year” means the period starting July 1 and ending on the following June 30.

“Improvement Area No. 1” means Improvement Area No. 1 of the CFD.

“Improvement Fund” means the account (regardless of its name) identified in the Indenture to hold funds that are available for expenditure to acquire or construct Authorized Facilities or to pay eligible impact fees.

“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended, and/or supplemented from time to time, and any instrument replacing or supplementing the same.

“Land Use Category” means any of the categories of land use identified in Table 1 in Section C below.

“Land Use Change” means a proposed or approved change to the Expected Land Uses after CFD Formation.

“Market Rate Unit” means, within any Tax Zone, a Residential Unit on a Parcel of Single Family Property that is not an Affordable Housing Unit, as defined herein.

“Master Developer” means Marina Station Phases 1 and 2, LLC, a Delaware limited liability company, and its successors and assigns.

“Maximum Facilities Special Tax” means the greatest amount of Facilities Special Tax that can be levied on a Parcel in any Fiscal Year as determined in accordance with Sections C and D below.

“Maximum Services Special Tax” means the greatest amount of Services Special Tax that can be levied on a Parcel in any Fiscal Year, as determined in accordance with Section C below.

“Maximum Special Taxes” means, as the context requires, either or both the Maximum Facilities Special Tax and/or the Maximum Services Special Tax.

“Multi-Family Property” means any Parcel of Taxable Property for which a building permit has been issued for construction of a residential structure with three or more Residential Units that share a single Assessor’s Parcel number, all of which are offered for rent to the general public and cannot be purchased by individual homebuyers.

“Other Property” means any Parcel of Developed Property in the CFD that is not Single Family Property or Multi-Family Property.

“Owners Association” means a homeowners association or property owners association that provides services to, and collects assessments, fees, dues, or charges from, property within Improvement Area No. 1.

“Owners Association Property” means any property within the boundaries of Improvement Area No. 1 that is owned in fee or through easement by the Owners Association, not including any such property that is located directly under a residential structure.

Attachment 1
16 IA No. 1, City of Marina CFD No. 2026-1 5 January 6, 2026

“Proportionately” means, for each Development Class, that the ratio of the actual Special Taxes levied in any Fiscal Year to the Maximum Special Taxes authorized to be levied in that Fiscal Year is equal for all parcels assigned to the Development Class.

“Public Property” means any property within the boundaries of Improvement Area No. 1 that is owned by the City, County, federal government, State of California, or other public agency.

“Required Coverage” means the amount by which the Expected Maximum Facilities Special Tax Revenues must exceed the Bond debt service and priority Administrative Expenses (if any), as set forth in the Indenture, Certificate of Special Tax Consultant, or other formation or bond document that sets forth the minimum required debt service coverage.

“Residential Unit” means (i) for Single Family Property, an SFD Unit or an individual residential unit within a duplex, halfplex, triplex, fourplex, townhome, live/work or condominium structure and (ii) for Multi-Family Property, an individual apartment unit. A second unit (granny flat) that shares a Parcel with an SFD Unit will not be considered a Residential Unit for purposes of levying the Special Taxes.

“RMA” means this Rate and Method of Apportionment of Special Taxes.

“Services Escalation Factor” means, in any Fiscal Year, the lesser of (i) the percentage increase, if any, in the Construction Cost Index for the San Francisco region in the twelve (12)-month period ending June 1 of the prior Fiscal Year, as published in the Engineering News Record (or other comparable source if the Engineering News Record is discontinued or otherwise not available), or (ii) four percent (4.0%). If, in any Fiscal Year, it is determined that the Construction Cost Index decreased in the prior Fiscal Year, the Services Escalation Factor shall be zero, and there shall be no corresponding decrease in the Maximum Services Special Taxes calculated pursuant to Section C below.

“Services Special Tax” means a special tax levied in any Fiscal Year to pay the Services Special Tax Requirement.

“Services Special Tax Requirement” means the amount of revenue needed in any Fiscal Year to pay for: (i) Authorized Services, (ii) establishment of reserves, (iii) Administrative Expenses, and (iv) amounts needed to cure delinquencies in the payment of Services Special Taxes which have occurred in the prior Fiscal Year. In any Fiscal Year, the Services Special Tax Requirement shall be reduced by surplus amounts available (as determined by the City) from the levy of the Services Special Tax in prior Fiscal Years, including revenues from collection of delinquent Services Special Taxes and associated penalties and interest.

“SF Lot” means an individual residential lot or condominium parcel, identified and numbered on a recorded Final Map, on which a building permit has been or is permitted to be issued for construction of a Residential Unit without further subdivision of the lot and for which no further subdivision of the lot is anticipated pursuant to an approved Tentative Map.

“SFD Unit” means a residential dwelling unit that does not share a common wall with another residential dwelling unit.

Attachment 1
17 IA No. 1, City of Marina CFD No. 2026-1 6 January 6, 2026

“Single Family Property” means, in any Fiscal Year, all Parcels of Taxable Property for which a building permit was or is expected to be issued for: (i) construction of an SFD Unit, or (ii) construction of a residential structure consisting of two or more Residential Units that share common walls, have separate Assessor’s Parcel numbers assigned to them (except for a duplex unit, which may share an Assessor’s Parcel with another duplex unit), and may be purchased by individual homebuyers (which shall still be the case even if the Residential Units are purchased and subsequently offered for rent by the owners of the Residential Units), including such residential structures that meet the statutory definition of a condominium contained in Civil Code Section 4125.

“Special Taxes” means, as the context requires, either or both the Facilities Special Tax and/or the Services Special Tax.

“Tax Zone” means a geographic area within which particular Maximum Special Tax rates may be levied pursuant to this RMA. Attachment 1 identifies the Tax Zones in Improvement Area No. 1 at CFD Formation.

“Taxable Owners Association Property” means, in any Fiscal Year after the First Bond Sale, any Parcel of Owners Association Property that satisfies all three of the following conditions: (i) the Parcel had not been Owners Association Property on the date of the First Bond Sale; (ii) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D below), the Parcel was not anticipated to be Owners Association Property as determined by the Administrator; and (iii) if the Parcel were to be exempt from the Facilities Special Tax because it is Owners Association Property, the Expected Maximum Facilities Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained.

“Taxable Property” means all Parcels within the boundaries of Improvement Area No. 1 that are not exempt from the Special Taxes pursuant to law or Section G below.

“Taxable Public Property ” means in any Fiscal Year after the First Bond Sale, any Parcel of Public Property that satisfies all three of the following conditions: (i) the Parcel had not been Public Property on the date of the First Bond Sale; (ii) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D below), the Parcel was not anticipated to be Public Property as determined by the Administrator; and (iii) if the Parcel were to be exempt from the Facilities Special Tax because it is Public Property, the Expected Maximum Facilities Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained.

“Taxable Welfare Exemption Property” means in any Fiscal Year after the First Bond Sale, any Parcel of Welfare Exemption Property that satisfies all three of the following conditions: (i) the Parcel had not been Welfare Exemption Property on the date of issuance of the First Bond Sale; (ii) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D below), the Parcel was not anticipated to be Welfare Exemption Property based on the Expected Land Uses, as determined by the Administrator; and (iii) if the Parcel were to be exempt from the Facilities Special Tax because it has become Welfare Exemption Property, the Expected Maximum Facilities Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained.

Attachment 1
18 IA No. 1, City of Marina CFD No. 2026-1 7 January 6, 2026 “Tentative Map” means a tentative map or substantial conformance exhibit for property in the CFD, including any adjustments or amendments thereto.

“Undeveloped Property” means, in any Fiscal Year, all Parcels of Taxable Property that are not Final Map Property, Developed Property, Taxable Owners Association Property, Taxable Public Property, or Taxable Welfare Exemption Property, as defined herein.

“Welfare Exemption Property ” means, in any Fiscal Year, any Parcels in the CFD that have received a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code and for which such welfare exemption is still in place.

B. DATA FOR ADMINISTRATION OF THE SPECIAL TAXES

Each Fiscal Year, the Administrator shall: (i) assign each Parcel of Taxable Property to the appropriate Tax Zone and the appropriate Development Class; (ii) for Developed Property, categorize each Parcel as Single Family Property, Multi-Family Property, or Other Property; (iii) for Single Family Property, determine the number of Market Rate Units and Affordable Housing Units on each Parcel; (iv) for Multi-Family Property, determine the number of Residential Units and the Acreage for each Parcel; (v) for Other Property, determine the Acreage for each Parcel; and (vi) determine the Facilities Special Tax Requirement and Services Special Tax Requirement for the Fiscal Year. In addition, the Administrator shall, on an ongoing basis, monitor the Tentative Map, Final Maps, and building permits to determine if there are any proposed Land Use Changes that would change the Expected Maximum Facilities Special Tax Revenues. If the Expected Maximum Facilities Special Tax Revenues will be revised pursuant to a proposed Land Use Change, the Administrator shall apply the steps set forth in Section D below.

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

C. MAXIMUM SPECIAL TAX

1. Facilities Special Tax: Developed Property and Final Map Property

The Maximum Facilities Special Tax for a Parcel of Developed Property or Final Map Property is the greater of: (i) the Base Facilities Special Tax set forth in Table 1 below, or (ii) the Maximum Facilities Special Tax determined pursuant to Section D.

Attachment 1
19 IA No. 1, City of Marina CFD No. 2026-1 8 January 6, 2026 Table 1
Base Facilities Special Tax
Developed Property and Final Map Property

Land Use Category
Base Facilities Special Tax
Fiscal Year 2025-26 *
Tax Zone 1
Single Family Property
$1,895 per Market Rate Unit (Developed Property)
or SF Lot (Final Map Property)
$0 per Affordable Housing Unit
Multi-Family Property $18,950 per Acre
Other Property $18,950 per Acre
Tax Zone 2
Single Family Property
$1,727 per Market Rate Unit (Developed Property)
or SF Lot (Final Map Property)
$0 per Affordable Housing Unit
Multi-Family Property $21,903 per Acre
Other Property $21,903 per Acre
Tax Zone 3
Single Family Property
$1,527 per Market Rate Unit (Developed Property)
or SF Lot (Final Map Property)
$0 per Affordable Housing Unit
Multi-Family Property $26,348 per Acre
Other Property $26,348 per Acre
Tax Zone 4
Single Family Property
$1,122 per Market Rate Unit (Developed Property)
or SF Lot (Final Map Property)
$0 per Affordable Housing Unit
Multi-Family Property $28,788 per Acre
Other Property $28,788 per Acre
Tax Zone 5
Single Family Property
$1,122 per Market Rate Unit (Developed Property)
or SF Lot (Final Map Property)
$0 per Affordable Housing Unit
Multi-Family Property $0 per Acre
Other Property $21,500 per Acre

* On July 1, 2026, and on each July 1 thereafter, all figures shown in Table 1 above shall be increased by an amount equal to two percent (2%) of the amount in effect for the prior Fiscal Year.

2. Facilities Special Tax: Undeveloped Property, Taxable Owners Association Property, Taxable Public Property, and Taxable Welfare Exemption Property

The Maximum Facilities Special Tax for Undeveloped Property, Taxable Owners Association Property, Taxable Public Property, and Taxable Welfare Exemption Property is $18,950 per Acre in Tax Zone 1, $21,903 per Acre in Tax Zone 2, $26,348 per Acre in Tax Zone 3, $28,788 per Acre in Tax Zone 4, and $0 per Acre in Tax Zone 5 for Fiscal Year 2025-26, which amounts shall increase on July 1, 2026, and each July 1 thereafter by an amount equal to two percent (2%) of the amounts in effect for the prior Fiscal Year.

Attachment 1
20 IA No. 1, City of Marina CFD No. 2026-1 9 January 6, 2026

3. Services Special Tax: Developed Property and Final Map Property

Table 2 below identifies the Maximum Services Special Tax for Parcels of Developed Property and Final Map Property.

Table 2
Maximum Services Special Tax
Developed Property and Final Map Property

Land Use Category
Maximum Services Special Tax
Fiscal Year 2025-26 *
Tax Zone 1
Single Family Property $2,563 per Residential Unit (Developed Property) or SF Lot (Final Map Property)
Multi-Family Property $25,630 per Acre
Other Property $25,630 per Acre
Tax Zone 2
Single Family Property $2,309 per Residential Unit (Developed Property) or SF Lot (Final Map Property)
Multi-Family Property $29,285 per Acre
Other Property $29,285 per Acre
Tax Zone 3
Single Family Property $2,032 per Residential Unit (Developed Property) or SF Lot (Final Map Property)
Multi-Family Property $35,062 per Acre
Other Property $35,062 per Acre
Tax Zone 4
Single Family Property $1,639 per Residential Unit (Developed Property) or SF Lot (Final Map Property)
Multi-Family Property $42,053 per Acre
Other Property $42,053 per Acre
Tax Zone 5
Single Family Property $1,639 per Residential Unit (Developed Property) or SF Lot (Final Map Property)
Multi-Family Property $900 per Residential Unit
Other Property $37,174 per Acre

* On July 1, 2026, and on each July 1 thereafter, all figures shown in Table 2 above shall be increased by the Services Escalation Factor.

4. Services Special Tax: Undeveloped Property

The Maximum Services Special Tax for Undeveloped Property is $25,630 per Acre in Tax Zone 1, $29,285 per Acre in Tax Zone 2, $35,062 per Acre in Tax Zone 3, $42,053 per Acre in Tax Zone 4, and $37,174 per Acre in Tax Zone 5 for Fiscal Year 2025-26, which amount shall, on July 1, 2026 and on each July 1 thereafter, be adjusted by the Services Escalation Factor.

Attachment 1
21 IA No. 1, City of Marina CFD No. 2026-1 10 January 6, 2026 D. CHANGES TO THE MAXIMUM FACILITIES SPECIAL TAX

1. Land Use Changes

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

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

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

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

Step 2: The Administrator shall calculate the Expected Maximum Facilities Special Tax Revenues that could be collected from Taxable Property in Improvement Area No. 1 after the Land Use Change based on application of the Base Facilities Special Taxes from Table 1.

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

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

3.a. The landowner requesting the Land Use Change (the “Requesting Landowner”) may make a prepayment in an amount that will ensure that the reduced Expected Maximum Facilities Special Tax Revenues are sufficient to provide Required Coverage, as determined pursuant to Section H below. If the Requesting Landowner notifies the Administrator that he/she would like to remedy the reduction by making a prepayment, such prepayment must be made by the earlier of (i) 30 days from the date of delivery of the prepayment estimate or (ii) the date of issuance of any building permits for any Parcel owned by the Attachment 1
22 IA No. 1, City of Marina CFD No. 2026-1 11 January 6, 2026 Requesting Landowner that was Final Map Property or Undeveloped Property at the time the Administrator prepared the prepayment estimate, or

3.b. If a prepayment is not received by the due date specified above, the Base Facilities Special Tax used to determine the Maximum Facilities Special Tax for each Parcel of Taxable Property in the area affected by the Land Use Change shall be increased proportionately until the Expected Maximum Facilities Special Tax Revenues are sufficient to maintain Required Coverage.

Pursuant to this Section D.3, the Administrator may from time to time update Attachment 2 to reflect revised Expected Maximum Facilities Special Tax Revenues. Such update shall be maintained internally by the Administrator and shall not require recordation of an amended RMA.

If multiple Land Use Changes are proposed simultaneously by a single landowner (which may include approval of multiple Final Maps at one time), and the landowner requests that the impact of two or more of the Land Use Changes be considered together, the Administrator shall consider the combined effect of the Land Use Changes to determine if there is a reduction in Expected Maximum Facilities Special Tax Revenues. If there is a reduction that would reduce debt service coverage below Required Coverage, and no prepayment has been received, then the Base Facilities Special Tax used to determine the Maximum Facilities Special Tax for each Parcel of Taxable Property in the areas affected by the Land Use Changes shall be increased proportionately until the aggregate amount that can be levied within such areas is equal to the amount that could have been levied prior to the proposed Land Use Changes. If Land Use Changes are proposed simultaneously by multiple landowners, or if an individual landowner proposing multiple Land Use Changes does not request that such Land Use Changes be considered together, the Administrator shall consider the proposed Land Use Changes individually.

Notwithstanding the foregoing, once a certificate of occupancy has been issued for a Residential Unit on a Parcel, the Maximum Facilities Special Tax for the Parcel cannot be increased because of subsequent Land Use Changes that may occur within the area in which the Parcel is located.

The duties imposed on the Administrator pursuant to this Section D to review Land Use Changes, and to review Final Maps and make certain calculations, are intended only to facilitate the administration of the Facilities Special Tax and to better assure the sufficiency of tax capacity to pay debt service on Bonds. Such duties are not intended to give any developer, subdivider, or owner of property the right to receive notice of the potential impact of Land Use Changes on the Facilities Special Tax applicable to a Parcel; and each developer, subdivider, or owner of property whose property is the subject of a Land Use Change shall be responsible for understanding the impact thereof on the Facilities Special Tax applicable to such property.

2. Partial Prepayments

If a Parcel makes a partial prepayment pursuant to Section H below, the Administrator shall recalculate the Maximum Facilities Special Tax for the Parcel pursuant to Section H.2. In addition, the Administrator shall update Attachment 2 to reflect the prepayment and the revised Expected Maximum Facilities Special Tax Revenues for Improvement Area No. 1. After the prepayment has been received, the application of Sections D, E, and H of this RMA shall be based on the adjusted Expected Maximum Facilities Special Tax Revenues after the prepayment.

Attachment 1
23 IA No. 1, City of Marina CFD No. 2026-1 12 January 6, 2026

3. Conversion of a Parcel of Public Property to Private Use

If, in any Fiscal Year, a Parcel of Public Property is converted to private use, such Parcel shall be subject to the levy of the Special Taxes. The Maximum Facilities Special Tax for each such Parcel shall be determined based on the applicable Base Facilities Special Tax for the Parcel, as determined by the Administrator.

4. Transfer of Expected Maximum Facilities Special Tax Revenues among Tax Zones

The Expected Maximum Facilities Special Tax Revenues were determined for each Tax Zone based on the Expected Land Uses within that Tax Zone. If the expected number or type of Residential Units is transferred from one Tax Zone to another, the City may, in its sole discretion, allow for a corresponding transfer of Expected Maximum Facilities Special Tax Revenues between the Tax Zones. Such a transfer shall only be allowed if (i) all adjustments are agreed to in writing by the affected property owners and the City, and (ii) there is no reduction in the total Expected Maximum Facilities Special Tax Revenues as a result of the transfer.

5. Affordable Housing Unit/Market Rate Unit Transfers

If, in any Fiscal Year, the Administrator determines that a Residential Unit that had previously been designated as an Affordable Housing Unit no longer qualifies as such, the Residential Unit shall be assigned the Maximum Facilities Special Tax that applies to Market Rate Units within that Tax Zone. If a Market Rate Unit becomes an Affordable Housing Unit, the Maximum Facilities Special Tax on such Residential Unit shall not be decreased unless the Administrator can confirm that such reduction in the Expected Maximum Facilities Special Tax Revenues will not result in less than Required Coverage.

6. Reduction in Facilities Special Tax

The Base Facilities Special Taxes set forth in Table 1 may be proportionately or disproportionately reduced prior to the First Bond Sale. Such a reduction shall be made without a vote of the qualified CFD electors if the Master Developer requests a reduction in the Base Facilities Special Taxes.

Any such reduction shall occur at least 30 days prior to the First Bond Sale.

E. METHOD OF LEVY OF THE SPECIAL TAXES

1. Facilities Special Tax

Each Fiscal Year, the Administrator shall determine the Facilities Special Tax Requirement to be collected in that Fiscal Year. A Facilities Special Tax shall then be levied according to the following steps:

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

Step 2: If additional revenue is needed after Step 1 in order to meet the Facilities Special Tax Requirement after Capitalized Interest has been applied to reduce the Facilities Attachment 1
24 IA No. 1, City of Marina CFD No. 2026-1 13 January 6, 2026 Special Tax Requirement, the Facilities Special Tax shall be levied Proportionately on each Parcel of Final Map Property up to 100% of the Maximum Facilities Special Tax for each Parcel of Final Map Property until the amount levied is equal to the Facilities Special Tax Requirement.

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

Step 4: If additional revenue is needed after Step 3, the Facilities Special Tax shall be levied Proportionately on each Parcel of Taxable Welfare Exemption Property, up to 100% of the Maximum Facilities Special Tax for each Parcel of Taxable Welfare Exemption Property for such Fiscal Year until the amount levied is equal to the Facilities Special Tax Requirement.

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

Step 6: If additional revenue is needed after Step 5, the Facilities Special Tax shall be levied Proportionately on each Parcel of Taxable Public Property, up to 100% of the Maximum Facilities Special Tax for each Parcel of Taxable Public Property until the amount levied is equal to the Facilities Special Tax Requirement.

2. Services Special Tax

Each Fiscal Year, the Administrator shall determine the Services Special Tax Requirement, and the Services Special Tax shall be levied according to the steps outlined below.

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

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

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

Attachment 1
25 IA No. 1, City of Marina CFD No. 2026-1 14 January 6, 2026 F. MANNER OF COLLECTION OF SPECIAL TAXES

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

The Facilities Special Tax shall be levied and collected until principal and interest on Bonds have been repaid. However, in no event shall Facilities Special Taxes be levied after Fiscal Year 2066-

67. Under no circumstances may the Special Taxes on a Parcel of Developed Property in residential use be increased in any Fiscal Year as a consequence of delinquency or default in payment of the Special Tax levied on another Parcel or Parcels by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults. The Services Special Tax may be levied and collected in perpetuity.

G. EXEMPTIONS

Notwithstanding any other provision of this RMA, no Special Taxes shall be levied in any Fiscal Year on the following:

(1) Public Property, except Taxable Public Property.

(2) Owners Association Property, except Taxable Owners Association Property.

(3) Welfare Exemption Property, except Taxable Welfare Exemption Property.

(4) Parcels that are owned by a public utility for an unmanned facility.

(5) Parcels that are subject to an easement that precludes any other use on the Parcel.

(6) Parcels that have fully prepaid the Facilities Special Tax obligation assigned to the Parcel pursuant to the formula set forth in Section H below. Notwithstanding the foregoing, the Services Special Tax will still be levied on Parcels that have prepaid the Facilities Special Tax obligation.

H. PREPAYMENT OF THE FACILITIES SPECIAL TAX

The following definitions apply to this Section H:

“Outstanding Bonds” means all Previously Issued Bonds which remain outstanding, with the following exception: if a Facilities Special Tax has been levied against, or already paid by, an Assessor’s Parcel making a prepayment, and a portion of the Facilities Special Tax will be used to pay a portion of the next principal payment on the Bonds that remain outstanding (as determined by the Administrator), that next principal payment shall be subtracted from the total Bond principal that remains outstanding, and the difference shall be used as the amount of Outstanding Bonds for purposes of this prepayment formula.

Attachment 1
26 IA No. 1, City of Marina CFD No. 2026-1 15 January 6, 2026 “Previously Issued Bonds” means all Bonds that have been issued prior to the date of prepayment.

“Public Facilities Requirement” means either $5,250,000 in 2026 dollars, which shall increase on January 1, 2027, and on each January 1 thereafter by two percent (2%) of the amount in effect in the prior year, or such other number as shall be determined by the City as sufficient to fund improvements that are authorized to be funded by the CFD. The Public Facilities Requirements shown above may be adjusted each time property annexes into Improvement Area No. 1 or there is an adjustment to the Expected Maximum Facilities Special Tax Revenues due to a Land Use Change or prepayment.

“Remaining Facilities Costs” means the Public Facilities Requirement minus public facility costs funded by Previously Issued Bonds and Special Taxes, but not less than $0.

1. Full Prepayment

The Facilities Special Tax obligation applicable to a Parcel in Improvement Area No. 1 may be prepaid and the obligation of the Parcel to pay the Facilities Special Tax permanently satisfied as described herein, provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Parcel at the time of prepayment. An owner of a Parcel intending to prepay the Facilities Special Tax obligation shall provide the City with written notice of intent to prepay. Within 30 days of receipt of such written notice, the City or its designee shall notify such owner of the prepayment amount for such Parcel. Prepayment must be made not less than 60 days prior to any redemption date for Bonds to be redeemed with the proceeds of such prepaid Facilities Special Taxes. The Prepayment Amount shall be calculated as follows (capitalized terms as defined below):

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

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

Step 1. Compute the amount that could be collected from the Parcel prepaying the Facilities Special Tax in the Fiscal Year in which prepayment would be received by the City by applying the Base Facilities Special Tax to the Expected Land Uses for the Parcel. If this Section H is being applied to calculate a prepayment pursuant to Section D above, compute the amount by which the proposed Land Use Change would reduce Expected Maximum Facilities Special Tax Revenues below the amount needed for Required Coverage, and use this amount for purposes of this Step 1.

Step 2. Divide the Maximum Facilities Special Tax computed pursuant to Step 1 for such Parcel by the total Expected Maximum Facilities Special Tax Attachment 1
27 IA No. 1, City of Marina CFD No. 2026-1 16 January 6, 2026 Revenues for all property in Improvement Area No. 1, as shown in Attachment 2 and as adjusted by the Administrator after prepayments or Land Use Changes.

Step 3. Multiply the quotient computed pursuant to Step 2 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the “Bond Redemption Amount”).

Step 4. Compute the current Remaining Facilities Costs (if any).

Step 5. Multiply the quotient computed pursuant to Step 2 by the amount determined pursuant to Step 4 to compute the amount of Remaining Facilities Costs to be prepaid (the “Remaining Facilities Amount”).

Step 6. Multiply the Bond Redemption Amount computed pursuant to Step 3 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

Step 7. Compute the amount needed to pay interest on the Bond Redemption Amount starting with the first Bond interest payment date after which the prepayment will be received until the earliest redemption date for the Outstanding Bonds. However, if Bonds are callable at the first interest payment date after the prepayment has been received, Steps 7, 8, and 9 of this prepayment formula will not apply.

Step 8: Compute the amount of interest the City reasonably expects to derive from reinvestment of the Bond Redemption Amount plus the Redemption Premium from the first Bond interest payment date after which the prepayment has been received until the redemption date for the Outstanding Bonds.

Step 9: Subtract the amount computed pursuant to Step 8 from the amount computed pursuant to Step 7 (the “Defeasance Requirement”).

Step 10. The administrative fees and expenses associated with the prepayment will be determined by the Administrator and include the costs of computing the prepayment, redeeming Bonds, and recording any notices to evidence the prepayment and the redemption (the “ Administrative Fees and Expenses”).

Step 11. If and to the extent so provided in the Bond Indenture, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”).

Step 12. The Facilities Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 3, 5, 6, 9, and 10, less the amount computed pursuant to Step 11 (the “Prepayment Amount”).

Attachment 1
28 IA No. 1, City of Marina CFD No. 2026-1 17 January 6, 2026 Step 13. From the Prepayment Amount, the amounts computed pursuant to Steps 3, 6, and 9 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to Step 5 shall be deposited into the Improvement Fund. The amount computed pursuant to Step 10 shall be retained in the account or fund that is established to pay Administrative Expenses.

Once a full prepayment of a Parcel’s Facilities Special Tax obligation has been received, a Notice of Cancellation of Facilities Special Tax Lien shall be recorded against the Parcel to reflect the discharge of the Parcel’s obligation to pay the Facilities Special Tax. However, a Notice of Cancellation of Facilities Special Tax Lien shall not be recorded until all Special Taxes levied on the Parcel in the current or prior Fiscal Years have been collected.

2. Partial Prepayment

A partial prepayment of the Facilities Special Tax may be made in an amount equal to any percentage of full prepayment desired by the party making a partial prepayment, except that the full amount of Administrative Fees and Expenses determined in Step 10 shall be included in the partial prepayment. The Maximum Facilities Special Tax that can be levied on a Parcel after a partial prepayment is made shall be equal to the portion of the Maximum Facilities Special Tax that was not prepaid. Once a partial prepayment has been received, an Amended Notice of Special Tax Lien shall be recorded against the Parcel to reflect the reduced Facilities Special Tax lien for the Parcel, and the Administrator shall update Attachment 2 to show the revised Expected Maximum Facilities Special Tax Revenues. However, an Amended Notice of Special Tax Lien shall not be recorded until all Special Taxes levied on the Parcel in the current or prior Fiscal Years have been collected.

3. Maintaining Required Coverage

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

I. INTERPRETATION OF RMA

The City reserves the right to make minor administrative and technical changes to this document that do not materially affect the rate and method of apportioning Special Taxes. In addition, the interpretation and application of any section of this document shall be left to the City’s discretion.

Interpretations may be made by the City by resolution of the City Council for purposes of clarifying any vagueness or ambiguity in this RMA.

Attachment 1
29 ATTACHMENT 1

Improvement Area No. 1
City of Marina
Community Facilities District No. 2026-1
(Marina Station)

Identification of Tax Zones and Expected Lot Layout in Improvement Area No. 1

Attachment 1
30 Attachment 1
31 ATTACHMENT 2

Improvement Area No. 1
City of Marina
Community Facilities District No. 2026-1
(Marina Station)

Expected Land Uses and Expected Maximum Facilities Special Tax Revenues

Land Use Category
Expected
Residential
Units/Acreage
Base Facilities
Special Tax
(Fiscal Year 2025-26)*
Expected
Maximum
Facilities
Special Tax
Revenues *
Tax Zone 1
Single Family Property:

Market Rate Units
Affordable Housing Units
35 0
$1,895 per Market Rate Unit
$0 per Affordable Housing Unit
$66,325
$0
Multi-Family Property 0 $18,950 per Acre $0
Other Property 0 $18,950 per Acre $0
Tax Zone 2
Single Family Property:

Market Rate Units
Affordable Housing Units
78 0
$1,727 per Market Rate Unit
$0 per Affordable Housing Unit
$134,706
$0
Multi-Family Property 0 $21,903 per Acre $0
Other Property 0 $21,903 per Acre $0
Tax Zone 3
Single Family Property:

Market Rate Units
Affordable Housing Units
88 0
$1,527 per Market Rate Unit
$0 per Affordable Housing Unit
$134,376
$0
Multi-Family Property 0 $26,348 per Acre $0
Other Property 0 $26,348 per Acre $0
Tax Zone 4
Single Family Property:

Market Rate Units
Affordable Housing Units
20 0
$1,122 per Market Rate Unit
$0 per Affordable Housing Unit
$22,440
$0
Multi-Family Property 0 $28,788 per Acre $0
Other Property 0 $28,788 per Acre $0
Tax Zone 5
Single Family Property:

Market Rate Units
Affordable Housing Units
0 0
$1,122 per Market Rate Unit
$0 per Affordable Housing Unit
$0
$0
Multi-Family Property 52 $0 per Acre $0
Other Property 0 $21,500 per Acre $0
Expected Maximum Facilities Special Tax Revenues (FY 2025-26 $) $357,847

* On July 1, 2026, and each July 1 thereafter, all dollar amounts shown above shall be increased by 2% of the amount in effect in the prior Fiscal Year.

Attachment 1
32 RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MARINA
ESTABLISHING CITY OF MARINA COMMUNITY FACILITIES DISTRICT NO. 2026-1 (MARINA STATION), AND AN IMPROVEMENT AREA THEREIN, TO

DESIGNATE A FUTURE ANNEXATION AREA, TO AUTHORIZE THE LEVY OF A

SPECIAL TAX TO PAY THE COST OF ACQUIRING OR CONSTRUCTING

CERTAIN PUBLIC FACILITIES, PROVIDING CERTAIN SERVICES AND PAYING

FOR CERTAIN INCIDENTAL EXPENSES AND TO PAY DEBT SERVICE ON

BONDED INDEBTEDNESS AND CALLING AN ELECTION WITHIN
IMPROVEMENT AREA NO. 1 THEREIN
WHEREAS, the City Council (the “City Council”) of the City of Marina, California (the “City”) has heretofore adopted Resolution No. 2026-09 (the “Resolution of Intention”) stating its intention to form City of Marina Community Facilities District No. 2026 -1 (Marina Station) (the “Community Facilities District”), designate Improvement Area No. 1 therein (“Improvement Area No. 1”), and designate territory proposed for annexation to the Community Facilities District in the future (the “Future Annexation Area”) as a part of I mprovement Area No. 1 or one or more future improvement areas (“Future Improvement Area (s)”) pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California , as incorporated and adopted into the City of Marina Municipal Code, with certain amendments, by Chapter 3.35 of the City of Marina Municipal Code (as so incorporated, adopted and amended, the “Act”); and WHEREAS, a copy of the Resolution of Intention setting forth a description of the proposed boundaries of the Community Facilities District , Improvement Area No. 1 and the Future Annexation Area, and the public facilities, services and the incidental expenses to be financed by the Community Facilities District (the “Facilities ,” “Services” and “Incidental Expenses,” respectively) is on file with the City Clerk; and is incorporated herein by reference; and WHEREAS, a combined notice of a public hearing to be held on March 3, 2026 was published and mailed to all landowners of the land proposed to be included within the Community Facilities District (including Improvement Area No. 1); and
WHEREAS, on March 3, 2026 , the City Council opened the public hearing (the “Hearing”) as required by law; and
WHEREAS, at the Hearing there was filed with this City Council a report containing a description of the Facilities and Services necessary to meet the needs of the Community Facilities District and an estimate of the cost of such Facilities and Services as required by Section 53321.5 of the Act (the “Community Facilities District Report”); and
WHEREAS, at the Hearing all persons desiring to be heard on all matters pertaining to the proposed formation of the Community Facilities District , the designation of Improvement Area No. 1, the designation of the Future Annexation Area , the levy of the special taxes and the authorization to issue bonded indebtedness for the Community Facilities District were heard and a full and fair hearing was held; and
WHEREAS, at the Hearing, evidence was presented to the City Council on the matters before it, and the proposed formation of the Community Facilities District, the designation of Improvement Area No. 1, the designation of the Future Annexation Area , the levy of special taxes, and the Attachment 2
33 2

authorization to issue bonded indebtedness was not precluded by a majority protest of the type described in Section 53324 of the Act, and this City Council at the conclusion of the Hearing is fully advised as to all matters relating to the formation of the Community Facilities District, the designation of Improvement Area No. 1, the designation of the Future Annexation Area, the levy of the special taxes and the authorization to issue bonded indebtedness; and

WHEREAS, the City Council has determined that there have been no registered voters residing in the proposed boundaries of Improvement Area No. 1 for the period of 90 days prior to the Hearing and that the qualified electors in Improvement Area No. 1 are the landowners within Improvement Area No. 1; and

WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to proceed with the establishment of the Community Facilities District , the designation of Improvement Area No. 1 and the designation of the Future Annexation Area, and with the calling of an election within the boundaries of Improvement Area No. 1 to authorize (i) the levy of special taxes within Improvement Area No. 1 pursuant to the rate and method of apportionment of the special tax attached to the Resolution of Intention as Attachment “C” (the “Rate and Method”) , (ii) the authorization to issue bonds to finance the Facilities and Incidental Expenses, and (iii) the establishment of an appropriations limit for Improvement Area No. 1;

WHEREAS, in order to facilitate the funding of the Facilities, the legislative body of the District desires to enter into an Acquisition Agreement (the “Acquisition Agreement”) with Marina Station Phases 1 and 2, LLC , a Delaware limited liability company (the “Developer”); the form of the Acquisition Agreement is on file with the City Clerk; and

NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF MARINA AS FOLLOWS:

SECTION 1. Each of the above recitals is true and correct.

SECTION 2. A Community Facilities District to be designated “ City of Marina Community Facilities District No. 2026-1 (Marina Station)” is hereby established pursuant to the Act and Improvement Area No. 1 is hereby designated within the Community Facilities District in accordance with Section 53350 of the Act . The City Council further designates the Future Annexation Area shown in Attachment “A” to the Resolution of Intention as property proposed for one or more annexations into the Community Facilities District in the future, by the unanimous consent and approval of the owner or owners of the parcel or parcels at the time of annexation (the “Unanimous Consent and Approval”) and approved by the City Council, acting as the legislative body of the Community Facilities District (the “Legislative Body”).

The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the Community Facilities District , the designation of Improvement Area No. 1, the designation of the Future Annexation Area, the levy of special taxes within Improvement Area No. 1 pursuant to the Rate and Method, and the authorization to issue bonds to finance the Facilities and Incidental Expenses were valid and in conformity with the requirements of law, including the Act. This finding is m ade in accordance with the provisions of Section 53325.1(b) of the Act.

SECTION 3. The boundaries of the Community Facilities District , Improvement Area No. 1 and the Future Annexation Area are established as shown on the map designated “Proposed Boundary Map City of Marina Community Facilities District No. 2026-1 (Marina Station)”, which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County of Monterey Book of Maps of Assessment and Attachment 2
34 3

Community Facilities Districts in the County Recorder’s Office in Book No. 5 at page 28 as Document No. 2026-003516 on February 5, 2026.

SECTION 4. The types of Facilities , Services and Incidental Expenses authorized to be provided for the Community Facilities District are those set forth in the Resolution of Intention.

The estimated cost of the Facilities and Incidental Expenses to be financed is set forth in the Community Facilities District Report, which estimates may change as the Facilities are designed and bid for construction and acquisition. Bond proceeds shall not be used to finance Services.

The City of Marina is authorized by the Act to contribute revenue to, or to construct or acquire the Facilities, all in accordance with the Act. The City Council finds that the proposed Facilities are necessary to meet the increased demand that will be placed upon public infrastructure and City as a result of new development within Improvement Area No. 1.

The City Council finds and determines that the proposed Services are necessary to meet the increased demand that will be placed upon local agencies and public infrastructure as a result of new development within Improvement Area No. 1 and that the Services to be financed benefit residents of the City and the future residents of the Community Facilities District.

SECTION 5. The City Council hereby adopts the Rate and Method attached to the Resolution of Intention as Attachment “C” as the applicable rate and method of apportionment for Improvement Area No. 1 . Except where funds are otherwise available, it is the intention of the City Council, subject to the approval of the eligible voters within Improvement Area No. 1, to levy the proposed special taxes in Improvement Area No. 1 at the rates set forth in the Rate and Method hereto on all non -exempt property within Improvement Area No. 1 sufficient to pay (i) the Facilities and the principal and interest and other periodic costs on the bonds proposed to be issued by the Community Facilities District to finance the Facilities and Incidental Expenses, including the establishment and replenishment of reserve f unds, any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash) and other expenses of the type permitted by Section 53345.3 of the Act; (ii) the Services, and (iii) the Incidental Expenses. The Community Facilities District expects to incur, and in certain cases has already incurred, Incidental Expenses in connection with the creation of the Community Facilities District and Improvement Area No. 1, the issuance of bonds, the levying and collecting of the special tax, the completion and inspection of the Facilities and the annual administration of the bonds and the Community Facilities District. The Rate and Method is described in detail in Attachment “C” to the Resolution of Intention and incorporated herein by this reference, and the City Council hereby finds that said Attachment “C” contains sufficient detail to allow each landowner within Improvement Area No. 1 to estimate the maximum amount of the special tax for Facilities (“Facilities Special Tax”) and Services (“Services Special Tax”) that may be levied against each parcel. As described in greater detail in the Community Facilities District Report, which is incorporated by reference herein, the special tax es are based on the expected demand that each parcel of real property within Improvement Area No. 1 will place on the Facilities and Services and, accordingly, are hereby determined to be reasonable. The special taxes shall be levied on each assessor’s parcel pursuant to the Rate and Method, but the Facilities Special Tax shall not be levied after Fiscal Year 2066-67. The Services Special Tax shall be levied in perpetuity as long as the Services are being provided. The special taxes are apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special taxes are not an ad valorem tax on or a tax based upon the ownership of real property.

Attachment 2
35 4

The City’s Finance Director will be responsible for preparing annually, or authorizing a designee to prepare, a current roll of special tax levy obligations by assessor’s parcel number and will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Act.

SECTION 6. In the event that a portion of the property within Improvement Area No. 1 shall become for any reason exempt, wholly or partially, from the levy of the Facilities Special Tax specified in the Rate and Method, the City Council shall, on behalf of the Community Facilities District, increase the levy of Facilities Special Tax to the extent necessary and permitted by law and these proceedings and subject to the maximum special tax set forth in the Rate and Method for Improvement Area No. 1, upon the remaining property within Improvement Area No. 1 which is not delinquent or exempt in order to yield the required debt service payments on any outstanding bonds of the Community Facilities District or to prevent the Community Facilities District from defaulting on any other obligations or liabilities payable from special taxes of Improvement Area No. 1; provided, however, that under no circumstances shall such Facilities Special Tax levied against an parcel in Improvement Area No. 1 of the Community Facilities District used for private residential uses be increased in any fiscal year as a consequence of delinquency or default by the owner of any other parcel or parcels within Improvement Area No. 1 by more than ten percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.

In the event that a portion of the property within a Future Improvement Area shall become for any reason exempt, wholly or partially, from the levy of the special tax applicable thereto, or in the event of delinquencies in the payment of special taxes levied therein, the City Council shall, on behalf of the Community Facilities District, increase the levy to the extent necessary and permitted by law and these proceedings , and subject to the maximum special tax set forth in the rate and method of apportionment of the special tax for such Future Improvement Area, upon the remaining property within such Future Improvement Area which is not exempt or delinquent in order to yield the required debt service payments on any outstanding bonds issued by the Community Facilities District for such Future Improvement Area , or to prevent the Community Facilities District from defaulting on any other obligations or liabilities payable from special taxes of such Future Improvement Area; provided, however, under no circumstances will the special tax levied against any parcel in the Future Improvement Area used for private residential uses be increased in any fiscal year as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within such Future Improvement Area by more than ten percent (10%) above the amount that would have been levied in that fiscal year had there never been any delinquencies or defaults in special tax payments. The amount of the special tax for parcels within a Future Improvement Area will be set in accordance with the rate and method of apportionment of the special tax approved for such Future Improvement Area in the Unanimous Consent and Approval.

SECTION 7. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in Improvement Area No. 1; and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the special tax by the City on behalf of the Community Facilities District ceases.

SECTION 8. Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within the Community Facilities District , if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within the Community Facilities District Attachment 2
36 5

and will be benefited by the Facilities proposed to be provided within the Community Facilities District.

SECTION 9. It is hereby further determined that there is no ad valorem property tax currently being levied on property within the proposed Community Facilities District for the exclusive purpose of paying the principal of or interest on bonds or other indebtedness incurred to finance the construction of the same capital facilities in territory of the Community Facilities District as are proposed to be provided by the Facilities to be financed by the Community Facilities District.

SECTION 10. It is hereby further determined that there is no ad valorem property tax currently being levied on property within proposed Community Facilities District for the exclusive purpose of paying for the same services in the territory of the Community Facilities District as are proposed to be provided by the Services to be financed by the Community Facilities District.

SECTION 11. Written protests against the establishment of the Community Facilities District, the designation of Improvement Area No. 1, the levy of special taxes within Improvement Area No. 1 pursuant to the Rate and Method, or the authorization to issue bonds to finance the Facilities and Incidental Expenses have not been filed by one-half or more of the registered voters within the boundaries of the Community Facilities District or Improvement Area No. 1 or by the property owners of one-half or more of the area of la nd within the boundaries of the Community Facilities District or Improvement Area No. 1 . The City Council hereby finds that the proposed special tax has not been precluded by a majority protest pursuant to Section 53324 of the Act.

SECTION 12. Written protests against the designation of the Future Annexation Area (i) have not been filed by one -half or more of the registered voters within the boundaries of the Community Facilities District or Improvement Area No. 1, (ii) have not been filed by one-half or more of the registered voters within the boundaries of the Future Annexation Area, (iii) have not been filed by the property owners of one-half or more of the area of land within the boundaries of the Community Facilities District or Improvement Area No. 1, or (iv) have not been filed by the property owners of one -half or more of the area of land within the boundaries of the Future Annexation Area. The City Council hereby finds that the designation of the Future Annexation Area has not been precluded by a majority protest pursuant to Section 53339.6 of the Act.

SECTION 13. An election is hereby called for Improvement Area No. 1 on the propositions of levying the special tax on the property within Improvement Area No. 1 and establishing an appropriations limit for Improvement Area No. 1 pursuant to Section 53325.7 of the Act and shall be consolidated with the election on the proposition of incurring bonded indebtedness for Improvement Area No. 1, pursuant to Section 53351 of the Act. The propositions to be placed on the ballot for the election within Improvement Area No. 1 are attached hereto as Exhibit A.

SECTION 14. The date of the election within Improvement Area No. 1 shall be March 3, 2026, or such later date as is consented to by the City Clerk and the landowners within Improvement Area No. 1. The City Clerk shall conduct the election. Except as otherwise provided by the Act, the election shall be conducted by personally delivered or mailed ballot and, except as otherwise provided by the Act, the election shall be conducted in accordance wit h the provisions of law regulating elections of the City insofar as such provisions are determined by the City Clerk to be applicable.

Attachment 2
37 6

It is hereby found that there are no registered voters within the territory of Improvement Area No. 1, and, pursuant to Section 53326 of the Act, each landowner who is the owner of record on the date hereof, or the authorized representative thereof, shall have one vote for each acre or portion thereof that he, she or it owns within Improvement Area No. 1 . The voters shall be the landowners of record within Improvement Area No. 1 as of March 3, 2026.

SECTION 15. The Community Facilities District Report is hereby ratified. The Community Facilities District Report, as submitted, is hereby approved and made a part of the record of the public hearing regarding the formation of the Community Facilities District, and is ordered to be kept on file with the transcript of these proceedings and open for public inspection.

SECTION 16. The City may accept advances of funds or work -in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred by the City in creating the Commu nity Facilities District. The City may enter into an agreement with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council, with or without interest.

SECTION 17. The form of the Funding Agreement on file with the City Clerk is hereby approved, and each of the City Manager, Finance Director Public Works Director, and their written designees, is authorized to execute the Funding Agreement in substantially the form on file with the City Clerk, together with such changes as are approved by the officer executing the same, with the approval of such changes to be conclusively evidenced by the execution and delivery thereof.

SECTION 18. This Resolution shall be effective upon its adoption.

PASSED AND ADOPTED by the City Council at a regular meeting held on the 3rd day of March 2026.

AYES, COUNCIL MEMBERS:

NOES, COUNCIL MEMBERS:

ABSTAIN, COUNCIL MEMBERS:

ABSENT, COUNCIL MEMBERS:

Bruce C. Delgado, Mayor

ATTEST:

Anita Sharp, Deputy City Clerk
Attachment 2
38 A-1
4904-0769-6264v6/202027-0002

EXHIBIT A

SAMPLE BALLOT
CITY OF MARINA COMMUNITY FACILITIES DISTRICT NO. 2026-1 (MARINA

STATION)
IMPROVEMENT AREA NO. 1

SPECIAL TAX AND SPECIAL BOND ELECTION
March 3, 2026
This ballot represents ___ votes.

To vote, write or stamp a cross (“+” or “X”) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void.

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

PROPOSITION A: To finance Facilities, Services, and Incidental Expenses, shall Improvement Area No. 1 of City of Marina Community Facilities District No. 2026-1 (Marina Station) be authorized to levy Facilities Special Taxes pursuant to the rate and method of apportionment as provided in Resolution No. 2026-09 of the City Council of the City of Marina for Improvement Area No. 1 of City of Marina Community Facilities District No. 2026-1 (Marina Station) , initially at rates from $ 1,122 – $1,895 per dwelling unit and $ 0 - $28,788 per acre increasing 2% each fiscal year through fiscal year 2066-67, plus Services Special Tax, initially at rates from $1,639 – $2,563 per dwelling unit and $25,630 - $42,053 per acre increasing at 4.0% or less each fiscal year in perpetuity, as specified in Resolution No. 2026-09 adopted January 21, 2026, such special taxes are estimated at $914,336 in 2026-27?

YES______
NO_______

PROPOSITION B: Shall Improvement Area No. 1 of City of Marina Community Facilities District No. 2026-1 (Marina Station) be authorized to issue Bonds in one or more series in the maximum aggregate principal amount of $7,600,000 and other debt for Improvement Area No. 1 of City of Marina Community Facilities District No. 2026-1 (Marina Station), with interest at a rate or rates not to exceed the maximum interest rate permitted by law at the time of sale of such Bonds or issuance of such debt, the proceeds of which bonds and other debt will be used to acquire and/or construct Facilities, and pay Incidental Expenses as provided in City of Marina Resolution No. 2026-09?

YES______
NO_______
Attachment 2
39 2

PROPOSITION C: For each year commencing with Fiscal Year 2025 -26, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, for Improvement Area No. 1 of City of Marina Community Facilities District No. 2026-1 (Marina Station) be an amount equal to $15,200,000, increasing annually in accordance with applicable law?

YES______
NO_______

Attachment 2
40 RESOLUTION NO. 2026-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MARINA, ACTING AS THE LEGISLATIVE BODY OF CITY
OF MARINA COMMUNITY FACILITIES DISTRICT NO.
2026-1 (MARINA STATION) , DETERMINING THE

NECESSITY TO INCUR BONDED INDEBTEDNESS

WITHIN SAID COMMUNITY FACILITIES DISTRICT AND
IMPROVEMENT AREA NO. 1 AND CALLING AN

ELECTION THEREIN
WHEREAS, on January 21, 2026 , the City Council (the “City Council”) of the City of Marina adopted Resolution No. 2026-09 (the “Resolution of Intention”) stating its intention to form City of Marina Community Facilities District No. 2026-1 (Marina Station) (the “Community Facilities District”), designate Improvement Area No. 1 therein (“Improvement Area No. 1”), and designate territory proposed for annexation to the Community Facilities District in the future (the “Future Annexation Area”) as a part of Improvement Area No. 1 or one or more future improvement areas (“Future Improvement Area(s)”) pursuant to the Mello Roos Community Facilities Act of 1982, as amended, as incorporated and adopted into the City of Marina Municipal Code, with certain amendments, by Chapter 3.35 of the City of Marina Municipal Code (as so incorporated, adopted and amended, the “Act”); and
WHEREAS, on January 21, 2026, the City Council also adopted Resolution No. 2026-10 stating its intention to incur bonded indebtedness within Improvement Area No. 1 of the proposed Community Facilities District in a maximum aggregate principal amount of $7,600,000 to finance:
(1) the purchase, construction, expansion, improvement or rehabilitation of public improvements identified in Exhibit B to the Resolution of Intention, including all furnishings, equipment and supplies related thereto (collectively, th e “Facilities”), which Facilities have a useful life of five years o r longer, and (2) the incidental expenses to be incurred in financing the Facilities and forming and administering the Community Facilities District (the “Incidental Expenses”); and WHEREAS, notice was published as required by law relative to the intention of the City Council to form the proposed Community Facilities District, to designate Improvement Area No. 1 therein, to designate the Future Annexation Area as property proposed for annexation into the Community Facilities District in the future, to levy special taxes within Improvement Area No. 1, and incur bonded indebtedness for the Community Facilities District (with respect to the proposed Improvement Area No. 1, in one or more series in the maximum aggregate principal amount of $7,600,000); and
WHEREAS, on March 3, 2026, the City Council opened a noticed public hearing to determine whether it should proceed to form the Community Facilities District, designate Improvement Area No. 1, designat e the Future Annexation Area as property proposed for annexation to the Community Facilities District in the future, authorize the levy of special taxes within Improvement Area No. 1 in accordance with the rate and method of apportionment of a special tax for Improvement Area No. 1, authorize the issuance of bo nded indebtedness for Improvement Area No. 1 to pay for the Facilities and Incidental Expenses and authorize the rate and method of apportionment of a special tax to be levied within the Community Facilities District for the purposes described in the Resolution of Intention; and
Attachment 3
41 Resolution No. 2026-
Page Two

WHEREAS, at said public hearing all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District, the designation of Improvement Area No. 1, the designation of the Future Annexation Area as property proposed for annexation to the Community Facilities District in the future, the levy of special taxes and the authority to issue bonded indebtedness within Improvement Area No. 1 to pay for the cost of the proposed Facilities and Incidental Expenses were heard and a full and fair hearing was held; and WHEREAS, subsequent to such hearing the City Council adopted a resolution establishing the Community Facilities District and designating Improvement Area No. 1 and the Future Annexation Area (the “Resolution of Formation”); and
WHEREAS, the City Council desires to make the necessary findings to incur bonded indebtedness for the Community Facilities District and for Improvement Area No. 1, to declare the purpose for said indebtedness, and to authorize the submittal of certain propositions to the voters of Improvement Area No. 1 , being the owners of land within Improvement Area No. 1 , all as authorized and required by law;

NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF MARINA AS FOLLOWS:

SECTION 1. It is necessary to incur bonded indebtedness of the Community Facilities District in a maximum aggregate principal amount of $7,600,000 within Improvement Area No.

1. From time to time, upon the annexation to the Community Facilities District of a parcel or parcels within the Future Annexation Area as one or more Future Improvement Areas as set forth in the Resolution of Formation, the not-to-exceed amount of bonded indebtedness necessary to be incurred by the Community Facilities District on behalf of each Future Improvement Area shall be set forth in each unanimous consent and approval of the owner or owners of such parcel or parcels (the “Unanimous Consent and Approval”) submitted for annexation and shall be approved by the City Council, acting as the legislative body of the Community Facilities District (the “Legislative Body”) in accordance with procedures established by the Act.

SECTION 2. The indebtedness is to be incurred for the purpose of financing the costs of purchasing, constructing, modifying, expanding, improving, or rehabilitating the Facilities, as described in the Resolution of Intention and the Resolution of Formation, financing the Incidental Expenses, and carrying out the powers and purposes of the Community Facilities District, including, but not limited to, financing the costs of selling the bonds, establishing and replenishing bond reserve funds and paying remarketing, credi t enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash), administrative expenses and other expenses of the type authorized by Section 53345.3 of the Act.

SECTION 3. The whole of the property within Improvement Area No. 1 , other than property exempted from the special tax pursuant to the provisions of the rate and method of apportionment attached to the Resolution of Intention as Exhibit C, shall pay for the bonded indebtedness issued by the Community Facilities District for Improvement Area No. 1 , pursuant to the levy of the special tax for the Facilities ( the “Facilities Special Tax ”) authorized by the Resolution of Formation.

Attachment 3
42 Resolution No. 2026-
Page Three

SECTION 4. The whole of the property within a Future Improvement Area, other than property exempted from the special tax pursuant to the provisions of the rate and method of apportionment for such Future Improvement Area shall pay for the bonded indebtedness issued by the Community Facilities District for such Future Improvement Area, pursuant to the levy of the special tax for the Facilities (the “ Facilities Special Tax”) authorized by the Unanimous Consent and Approval for such Future Improvement Area.

SECTION 5. The Community Facilities District for Improvement Area No. 1 may issue one or more series of bonds secured by the Facilities Special Tax and the maximum term of any series of bonds to be issued shall in no event exceed forty (40) years.

SECTION 6. The bonds shall bear interest at the rate or rates not to exceed the maximum interest rate permitted by law, payable annually or semiannually, or in part annually and in part semiannually, except the first interest payment may be for a period of less than six months, with the actual rate or rates and times of payment to be determined at the time or times of sale thereof.

SECTION 7. The bonds may bear a variable or fixed interest rate, provided that such variable rate or the fixed rate shall not exceed the maximum rate permitted by Section 53531 of the California Government Code, or any other applicable provision of law limiting the m aximum interest rate on the bonds.

SECTION 8. Pursuant to Section 53351 of the Act, a special election is hereby called for Improvement Area No. 1 of the Community Facilities District on the proposition of incurring the bonded indebtedness for Improvement Area No. 1 . The proposition relative to incurring bonded indebtedness for Improvement Area No. 1 of the Community Facilities District shall be in the form set forth in Exhibit A to the Resolution of Formation. The election in Improvement Area No. 1 of the Community Facilities District on the proposi tion of incurring bonded indebtedness shall be consolidated with the election and on the propositions to levy the special taxes and to establish an appropriations limit for Improvement Area No. 1 of the Community Facilities District , which propositions shall be in the forms set forth in Exhibit A to the Resolution of Formation.

SECTION 9. The date of the consolidated special election for the Community Facilities District shall be March 3, 2026, or such later date as is consented to by the City Clerk of the City of Marina (the “ City Clerk ”) and the owners of land within Improvement Area No. 1 of the Community Facilities District . The election shall be conducted by the City Clerk . Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of the Resolution of Formation and this resolution; and all ballots shall be received by, and the City Clerk shall close the election following the close of the public hearing on March 3, 2026; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act. It is hereby found that there are fewer than 12 registered voters within the territory of Improvement Area No. 1 of the Community Facilities District and, pursuant to Section 53351(j) of the Act, the ballots for the special election shall be distributed in person or by mail with return postage prep aid to the landowners of record within the Community Facilities District as of the close of the March 3, 2026 hearing. Each landowner shall have one vote for each acre or portion thereof that he, she or it owns within Improvement Area No. 1 of the Community Facilities District, as provided in Section 53326 of the Act.

Attachment 3
43 Resolution No. 2026-
Page Four

SECTION 10. This Resolution shall be effective upon its adoption.

PASSED AND ADOPTED by the City Council at a regular meeting held on the 3rd day of March, 2026.

AYES, COUNCIL MEMBERS:

NOES, COUNCIL MEMBERS
ABSTAIN, COUNCIL MEMBERS:

ABSENT, COUNCIL MEMBERS:

Bruce C. Delgado, Mayor

ATTEST:

Anita Sharp, Deputy City Clerk
Attachment 3
44 RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MARINA,

ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF CITY OF MARINA COMMUNITY FACILITIES DISTRICT NO. 2026 -1 (MARINA STATION) CERTIFYING THE RESULTS OF THE MARCH 3, 2026, SPECIAL

TAX AND BOND ELECTION
WHEREAS, the City Council (the “City Council”) of the City of Marina , California (the “City”) , acting as the legislative body of City of Marina Community Facilities District No. 2026 -1 (Marina Station) (the “Community Facilities District”), c alled and duly held an election on March 3, 2026 within the boundaries of Improvement Area No. 1 (“Improvement Area No. 1”) of the Community Facilities District pursuant to Resolution Nos. 2026-09 and 2026-10 for the purpose of presenting to the qualified electors within Improvement Area No. 1 the propositions which are attached hereto as Exhibit A; and
WHEREAS, there has been presented to th e City Council a certificate of the City Clerk canvassing the results of the election, a copy of which is attached hereto as Exhibit B.

NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF MARINA AS FOLLOWS:

Section 1. Each of the above recitals is true and correct and is adopted by the legislative body of the Community Facilities District.

Section 2. Propositions A, B and C presented to the qualified electors of Improvement Area No. 1 on March 3, 2026 were approved by two-thirds or more of the votes cast at the election held for the Community Facilities District, and each of Propositions A, B and C has carried. The City Council is hereby authorized to levy on the land within Improvement Area No. 1 the special taxes described in Proposition A for the purposes described therein and to take the necessary steps to levy the special taxes authorized by Proposition A and to issue bonds in one or more series in a maximum aggregate principal amount of $7,600,000 specified in Proposition B.

Section 3. The City Clerk is hereby directed to record in the Office of the County Recorder within fifteen days of the date hereof a notice of special tax lien which Bond Counsel to the Community Facilities District shall prepare in the form required by Streets and Highways Code Section 3114.5.

PASSED AND ADOPTED by the City Council at a regular meeting held on the 3rd day of March 2026.

AYES, COUNCIL MEMBERS:

NOES, COUNCIL MEMBERS:

ABSTAIN, COUNCIL MEMBERS:

ABSENT, COUNCIL MEMBERS:

Bruce C. Delgado, Mayor
ATTEST:

Anita Sharp, Deputy City Clerk
Attachments: Exhibits A and B
Attachment 4
45 A-1

EXHIBIT A

SAMPLE BALLOT
CITY OF MARINA COMMUNITY FACILITIES DISTRICT NO. 2026-1 (MARINA

STATION)
IMPROVEMENT AREA NO. 1

SPECIAL TAX AND SPECIAL BOND ELECTION
March 3, 2026
This ballot represents ___ votes.

To vote, write or stamp a cross (“+” or “X”) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void.

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

PROPOSITION A: To finance Facilities, Services, and Incidental Expenses, shall Improvement Area No. 1 of City of Marina Community Facilities District No. 2026-1 (Marina Station) be authorized to levy Facilities Special Taxes pursuant to the rate and metho d of apportionment as provided in Resolution No. 2026 -09 of the City Council of the City of Marina for Improvement Area No. 1 of City of Marina Community Facilities District No. 2026-1 (Marina Station), initially at rates from $1,122 – $1,895 per dwelling unit and $0 - $28,788 per acre increasing 2% each fiscal year through fiscal year 2066 -67, plus Services Special Tax, initially at rates from $1,639 – $2,563 per dwelling unit and $25,630 - $42,053 per acre increasing at 4.0% or less each fiscal year in perpetuity, as specified in Resolution No. 2026-09 adopted January 21, 2026, such special taxes are estimated at $ 914,336 in 2026-27?

YES______
NO_______

PROPOSITION B: Shall Improvement Area No. 1 of City of Marina Community Facilities District No. 2026-1 (Marina Station) be authorized to issue Bonds in one or more series in the maximum aggregate principal amount of $7,600,000 and other debt for Improvement Area No. 1 of City of Marina Community Facilities District No. 2026-1 (Marina Station), with interest at a rate or rates not to exceed the maximum interest rate permitted by law at the time of sale of such Bonds or issuance of such debt, the proceeds of which bonds and other debt will be used to acquire and/or construct Facilities, and pay Incidental Expenses as provided in City of Marina Resolution No. 2026-09?

YES______
NO_______
PROPOSITION C: For each year commencing with Fiscal Year 2025 26, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, for Improvement Area No. 1 of City of Marina Community Facilities District No. 2026-1 (Marina Station) be an amount equal to $15,200,000, increasing annually in accordance with applicable law?

YES______
NO_______
Attachment 4
46 B-1

EXHIBIT B

CERTIFICATE OF THE CITY CLERK

AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS I, Anita Sharp, Deputy City Clerk of the City of Marina , do hereby certify that I have examined the returns of the Special Tax and Bond Election for City of Marina Community Facilities District No. 2026-1 (Marina Station) (the “Community Facilities District”). The election was held in the chambers of the City Council at 211 Hillcrest Avenue, Marina, California 93933, on March 3, 2026 . I caused to be delivered a ballot to the authorized representative of each qualified elector. One (1) ballot was returned.

I further certify that the results of said election and the number of votes cast for and against Propositions A, B and C are as follows:

PROPOSITION A PROPOSITION B PROPOSITION C
YES: YES: YES:

NO: __ NO: __ NO: __
TOTAL: 52 TOTAL: 52 TOTAL: 52

Dated this 3rd day of March 2026.

Anita Sharp, Deputy City Clerk
City of Marina
Attachment 4
47 ORDINANCE NO. 2026-

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MARINA ,

ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF CITY OF MARINA COMMUNITY FACILITIES DISTRICT NO. 2026 -1 (MARINA

STATION) AUTHORIZING THE LEVY OF SPECIAL TAX ES WITHIN
IMPROVEMENT AREA NO. 1
WHEREAS, on January 21, 2026 , the City Council (the “City Council”) of the City of Marina (the “City”) adopted Resolution No. 2026-09 declaring its intention to form City of Marina Community Facilities District No. 2026-1 (Marina Station) (the “Community Facilities District”) and Improvement Area No. 1 therein, and designate territory proposed for annexation to the Community Facilities District in the future (the “Future Annexation Area”) as a part of Improvement Area No. 1 or one or more future improvement areas (“Future Improvement Area(s)”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California, as incorporated and adopted into the City of Marina Municipal Code, with certain amendments, by Chapter 3.35 of the City of Marina Municipal Code (as so incorporated, adopted and amended, the “Act”) , and adopted Resolution No. 2026-10 declaring its intention to incur bonded indebtedness of the Community Facilities District; and
WHEREAS, on March 3, 2026, after providing all notice required by the Act, the City Council opened a public hearing required by the Act relative to the formation of the Community Facilities District and Improvement Area No. 1 therein , and designat ion of the Future Annexation Area pursuant to the Act, the proposed levy of special taxes within the Community Facilities District to finance certain public improvements and services described in Resolution No. 2026-09 and to secure the payment of any bonded indebt edness of the Community Facilities District , and with respect to Improvement Area No. 1 in a maximum aggregate principal amount of $7,600,000 of bonded indebtedness; and
WHEREAS, at the public hearing, all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District , the designation of Improvement Area No. 1 and the designation of the Future Annexation Area , the proposed levy of the special tax es within Improvement Area No. 1 to finance the improvements and services described in Resolution No. 2026-09 and the proposed issuanc e of bonded indebtedness of the Community Facilities District for Improvement Area No. 1 were heard and a full and fair hearing was held; and WHEREAS, on March 3, 2026 , following the close of the public hearing, the City Council adopted a resolution establishing the Community Facilities District and designating Improvement Area No. 1 and the Future Annexation Area (the “Resolution of Formation”) and a resolution determining the necessity to incur bonded indebtedness of the Community Facilities District and Improvement Area No. 1 (the “Resolution to Incur Bonded Indebtedness”) each of which called a consolidated special election on March 3, 2026 within Improvement Area No. 1 on three propositions relating to the levying of special taxes, the incurring of bonded indebtedness and the establishment of an appropriations limit for Improvement Area No. 1; and WHEREAS, on March 3, 2026 , a special election was held within the Community Facilities District at which the qualified electors approved Propositions A, B and C by two-thirds or more of the vote, authorizing the levy of special tax es within Improvement Area No. 1 for the purposes described in the Resolution of Formation, authorizing and the issuance of bonded indebtedness for Improvement Area No. 1 as described in the Resolution to Incur Bonded Indebtedness , and establishing an appropriations limit for Improvement Area No. 1.

Attachment 5
48 Ordinance No. 2026-
Page Two

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MARINA ACTING IN

ITS CAPACITY AS THE LEGISLATIVE BODY OF CITY OF MARINA COMMUNITY FACILITIES DISTRICT NO. 2026-1 (MARINA STATION), ORDAINS AS FOLLOWS:

Section 1. The above recitals are all true and correct.

Section 2. By the passage of this Ordinance, the City Council authorizes the levy of special taxes within Improvement Area No. 1 at the maximum rates and in accordance with the rates and method of apportionment set forth in Exhibit C to the Resolution No. 2026-09, which rate and method of apportionment is incorporated by reference herein (the “Rate and Method”).

Section 3. The Finance Director of the City is hereby further authorized and directed each fiscal year, on or before August 10 of each year, or such later date as is permitted by law, to determine the specific special tax rates and amounts to be levied for the next ensuing fiscal year for each parcel of real property within Improvement Area No. 1 pursuant to the Rate and Method.

The special tax rates to be levied pursuant to the Rate and Method shall not exceed the applicable maximum rates set forth therein, but the special taxes may be levied at a lower rate.

Section 4. Properties or entities of the state, federal or other local governments shall be exempt from the special tax es, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act, the Rate and Method , and the boundary map for the Community Facilities District . No other properties or entities are exempt from the special tax es unless the properties or entities are expressly exempted in the Rate and Method , or in a resolution of consideration to levy a new special tax or special taxes or to alter the Rate or Method of an existing special tax as provided in Section 53334 of the Act.

Section 5. All of the collections of the special taxes pursuant to the Rate and Method shall be used as provided for in the Act and the Resolution of Formation. The special tax es shall be levied within Improvement Area No. 1 only so long as needed for the purposes described in the Resolution of Formation.

Section 6. The special taxes levied pursuant to the Rate and Method shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes (which such procedures include the exercise of all rights and remedies permitted by law to make corrections, including, but not limited to, the issuance of amended or supplemental tax bills), as such proc edure may be modified by law or by this City Council from time to time.

Section 7. As a cumulative remedy, if any amount levied as a special tax for payment of the interest or principal of any bonded indebtedness of the Community Facilities District, together with any penalties and other charges accruing under this Ordinance, are not paid when due, the City Council may, not later than four years after the due date of the last installment of principal on the Bonds, order that the same be collected by an action brought in the superior court to foreclose the lien of such special tax.

Section 8. This Ordinance relating to the levy of the special tax es within the Community Facilities District shall take effect 30 days following its final passage, and the specific authorization for adoption is pursuant to the provisions of Section 53340 of the Act.

Attachment 5
49 Ordinance No. 2026-
Page Three

Section 9. The City Clerk is hereby authorized to perform all acts which are required by the Act, this Ordinance or by law in order to accomplish the purposes of this Ordinance.

This Ordinance was introduced at a regular meeting of the City Council of the City of Marina, held on the 3rd day of March 2026, and given its first reading at said meeting. Said Ordinance was given a second reading at a regular meeting of the City Council held on the 17th day of March 2026, and after such reading, Councilmember _______________________ who moved its adoption, seconded by Councilmember _______________________, said Ordinance was thereupon adopted by the following vote:

AYES, COUNCIL MEMBERS:

NOES, COUNCIL MEMBERS:

ABSENT, COUNCIL MEMBERS:

ABSTAIN, COUNCIL MEMBERS:

APPROVED:

___________________________
Bruce C. Delgado, Mayor

ATTEST:

___________________________
Anita Sharp, Deputy City Clerk

Attachment 5
50 4910-7310-6811/202027-0002

ACQUISITION AGREEMENT
by and between

CITY OF MARINA
and
MARINA STATION PHASES 1 AND 2, LLC
Dated as of March 1, 2026
Relating to:

CITY OF MARINA
IMPROVEMENT AREA NO. 1 OF
CITY OF MARINA COMMUNITY FACILITIES DISTRICT NO. 2026-1 (MARINA STATION)
Attachment 6
51 i
4910-7310-6811/202027-0002

TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS .......................................................................................................... 1 Section 1.1 Definitions ........................................................................................................... 1 ARTICLE II RECITALS ................................................................................................................ 4 Section 2.1 The District .......................................................................................................... 4 Section 2.2 The Development ................................................................................................ 4 Section 2.3 The Facilities ....................................................................................................... 4 Section 2.4 The Financing ...................................................................................................... 5 Section 2.5 The Bonds ............................................................................................................ 5 Section 2.6 No Advantage to City Construction .................................................................... 5 Section 2.7 Agreements .......................................................................................................... 5 ARTICLE III FUNDING ................................................................................................................. 5 Section 3.1 City Proceeding ................................................................................................... 5 Section 3.2 Levy of Special Taxes ......................................................................................... 6 Section 3.3 Bonds ................................................................................................................... 6 Section 3.4 Bond Proceeds ..................................................................................................... 6 Section 3.5 Disclosure of Special Tax .................................................................................... 7 ARTICLE IV CONSTRUCTION OF FACILITIES ........................................................................ 7 Section 4.1 Plans .................................................................................................................... 7 Section 4.2 Duty of Owner to Construct ................................................................................ 7 Section 4.3 Relationship to Public Works .............................................................................. 8 Section 4.4 Independent Contractor ....................................................................................... 9 Section 4.5 Performance and Payment Bonds ........................................................................ 9 Section 4.6 Contracts and Change Orders .............................................................................. 9 Section 4.7 Time for Completion ........................................................................................... 9 ARTICLE V ACQUISITION AND PAYMENT .......................................................................... 10 Section 5.1 Inspection .......................................................................................................... 10 Section 5.2 Agreement to Sell and Acquire Facilities .......................................................... 10 Section 5.3 Payment Requests .............................................................................................. 10 Section 5.4 Processing Payment Requests ........................................................................... 11 Section 5.5 Payment ............................................................................................................. 11 Section 5.6 Restrictions on Payments .................................................................................. 12 Section 5.7 Defective or Nonconforming Work ................................................................... 13 Section 5.8 Modification of Discrete Components .............................................................. 13 Section 5.9 Payments of Purchase Price of Facilities or Discrete Components in Installments........................................................................................................ 14 ARTICLE VI OWNERSHIP AND TRANSFER OF FACILITIES............................................... 14 Section 6.1 Facilities to be Owned by the City-Conveyance of Land and Easements to City ................................................................................................................ 14 Section 6.2 Facilities to be Owned by the City-Title Evidence ........................................... 14 Section 6.3 Facilities Constructed on Private Lands ............................................................ 15 Attachment 6
52 Page
ii
4910-7310-6811/202027-0002
Section 6.4 Facilities Constructed on City Land .................................................................. 15 Section 6.5 Facilities to be Acquired by Other Public Agencies ......................................... 15 Section 6.6 Maintenance and Warranties ............................................................................. 15 ARTICLE VII INSURANCE .......................................................................................................... 16 Section 7.1 Insurance Requirements .................................................................................... 16 ARTICLE VIII REPRESENTATIONS, WARRANTIES AND COVENANTS ............................. 16 Section 8.1 Representations, Covenants and Warranties of the Owner ............................... 16 Section 8.2 Indemnification and Hold Harmless .................................................................. 17 ARTICLE IX TERMINATION ...................................................................................................... 18 Section 9.1 Mutual Consent ................................................................................................. 18 Section 9.2 City Election for Cause ..................................................................................... 18 Section 9.3 Force Majeure .................................................................................................... 19 ARTICLE X MISCELLANEOUS ................................................................................................ 19 Section 10.1 Limited Liability of City ................................................................................... 19 Section 10.2 Excess Costs ...................................................................................................... 19 Section 10.3 Audit .................................................................................................................. 20 Section 10.4 Attorney’s Fees .................................................................................................. 20 Section 10.5 Notices ............................................................................................................... 20 Section 10.6 Severability ........................................................................................................ 20 Section 10.7 Successors and Assigns ..................................................................................... 20 Section 10.8 Other Agreements .............................................................................................. 21 Section 10.9 Waiver ............................................................................................................... 21 Section 10.10 Merger ............................................................................................................... 21 Section 10.11 Parties in Interest ............................................................................................... 21 Section 10.12 Amendment ....................................................................................................... 21 Section 10.13 California Law ................................................................................................... 21 Section 10.14 Counterparts ...................................................................................................... 22

List of Exhibits
Exhibit A: Description of Authorized Facilities Eligible for Acquisition from the Owner Exhibit B: Discrete Components of Facilities
Exhibit C: Form of Payment Request

Attachment 6
53 4910-7310-6811/202027-0002
THIS ACQUISITION AGREEMENT (the “Acquisition Agreement”), dated as of March 1, 2026, is by and between the CITY OF MARINA, a municipal corporation and a political subdivision of the State of California (the “City”), acting for and on behalf of itself and City of Marina Community Facilities District No. 2026 -1 (Marina Station) (the “District”), and Marina Station Phases 1 and 2, LLC a Delaware limited liability company (“Owner”).

ARTICLE I

DEFINITIONS
Section 1.1 Definitions.

The following terms shall have the meanings ascribed to them in this Section 1.1 for purposes of this Acquisition Agreement.)
“Acceptable Title” means title to land or interest therein, in form acceptable to the Director, free and clear of all liens, taxes, assessments, leases, easements and encumbrances, whether or not recorded, but subject to any exceptions determined by the Director as not interfering with the actual or intended use of the land or interest therein. If any real property is within the boundaries of any existing community facilities district (including the District), an assessment district, or other financing district, then the lien of the special taxes or assessments shall be a permitted exception to Acceptable Title so long as the property owned by the City or other public agency is exempt from the special tax or assessments to be levied by the community facilit ies district, assessment district, or other financing district. Notwithstanding the foregoing, an irrevocable offer of dedication may constitute land with an “Acceptable Title” if: (i) such offer is necessary to satisfy a condition to a tentative or fina l parcel map, (ii) such offer is in a form acceptable to the Director, (iii) the Director has no reason to believe that such offer of dedication will not be accepted by the applicable public agency, and (iv) the Owner commits in writing not to allow any liens to be imposed on such property prior to its acceptance. “Acceptance Date” means the date the City Council (or other public entity which is to own a Facility) takes final action to accept dedication of or transfer of title to a Facility. “Acquisition Agreement” means this Acquisition Agreement, together with any Supplement hereto.
“Act” means the Mello-Roos Community Facilities Act of 1982, Section 53311 et seq. of the California Government Code , as amended, as incorporated and adopted into the City of Marina Municipal Code, with certain amendments, by Chapter 3.35 of the City of Marina Municipal Code. “Actual Cost” means the substantiated cost of a Facility or a Discrete Component, which costs may include: (i) the costs incurred by the Owner for the construction of such Facility or Discrete Component, (ii) the costs incurred by the Owner in preparing t he Plans for such Facility or Discrete Component and the related costs of environmental evaluations of the Facility or Discrete Component, (iii) the fees paid to governmental agencies or utilities for obtaining permits, licenses or other governmental appro vals for such Facility or Discrete Component (other than development impact fees), (iv) professional costs incurred by the Owner or the City associated with such Facility or Discrete Component, such as engineering, legal, accounting, inspection, construction staking, materials testing, and similar professional services; (v) a project a dministration fee not to exceed 5% of the cost of constructing such Facility or Discrete Component, as determined pursuant to clause (i) of this definition; (vi) the costs directly related to the construction and/or acquisition of a Facility or Discrete Attachment 6
54 2
4910-7310-6811/202027-0002
Component, such as costs of payment, performance and/or maintenance bonds, and insurance costs (including costs of any title insurance required hereunder) ; (vii) the actual, reasonable cost of compiling, reviewing, and preparing payment requests and the materials required to submit payment requests, paid by the Developer to both companies that the Developer has engaged (such as Development and Financial Advis ory) and companies retained by the City to evaluate the payment requests, and (viii) the actual, rea sonable cost of any real property or interest therein acquired from a party other than the Developer or any Affiliate of the Developer, which real property or interest therein is either necessary for the construction of such Facility (e.g., temporary construction easements, haul roads, etc.) or is required to be conveyed with such Facility in order to convey title thereto to the City. “Affiliate” means any entity with respect to which fifty percent (50%) or more of the ownership or voting power is held individually or collectively by any of the Owner and any other entity owned, controlled or under common ownership or control by or with, as applicable, the Owner, and includes all general partners of any entity which is a partnership. Control shall mean ownership of fifty percent (50%) or more of the voting power of or ownership interest in the respective entity. “Bonds” means the special tax bonds to be issued by the District for an Improvement Area pursuant to the Act in one or more series.
“CFD Sources” shall mean, collectively, (i) proceeds of the Bonds on deposit in the Improvement Fund, (ii) PayGo Special Taxes on deposit in the Paygo Account, (iii) prepayments of Special Taxes under the Rate and Method for an Improvement Area prior to th e issuance of the first series of Bonds for such Improvement Area, and (iv) prepayments of Special Taxes under the Rate and Method for an Improvement Area after the issuance of the first series of Bonds for such Improvement Area to the extent that such pre payments are allocated to the costs of Facilities pursuant to such Rate and Method. “CFD Sources” includes investment earnings on deposit in the Improvement Fund and Paygo Account from time to time.
“City” means the City of Marina , a municipal corporation and a political subdivision of the State.
“Conditions of Approval” means any and all conditions of approvals and mitigation measures imposed in connection with the granting of the land use entitlements, permits and approvals for the development of the Project, including but not limited to any appl icable Public Improvement Agreement, subdivision improvement agreement or other agreement with the City relating to the development of the Project or the installation of the Facilities. “County” means Monterey County, California.
“Director” means the Public Works Director of the City, or their written designee acting as such under this Acquisition Agreement, or the City Manager. “Discrete Component” means a component of a Facility that the Director has agreed can be separately identified, inspected and completed, and be the subject of a Payment Request hereunder .

The Discrete Components are shown on Exhibit B hereto.
“District” means City of Marina Community Facilities District No. 2026 -1 (Marina Station), created by the City under the Act.

Attachment 6
55 3
4910-7310-6811/202027-0002
“Estimated Cost” means the estimated cost of a Facility or Discrete Component as shown on Exhibit B hereto.
“Facilities” means the public and other facilities described in Exhibit A hereto which are to be acquired with the CFD Sources.
“Fiscal Agent” means a financial institution in its capacity as fiscal agent under a Fiscal Agent Agreement, or any successor thereto acting as fiscal agent under a Fiscal Agent Agreement. “Fiscal Agent Agreement” means the fiscal agent agreement or indenture between the City and the Fiscal Agent, providing for, among other matters, the issuance of Bonds and the establishment of an Improvement Fund, as it may be amended from time to time. “Future Annexation Area” means the property designated on the boundary map for the District as areas of future annexation to the District.
“Future Improvement Area” means an improvement area within the District that is designated upon annexation to the District of some or all of the Future Annexation Area. “Improvement Area” means Improvement Area No 1 of the District and any Future Improvement Area.
“Improvement Fund” means an Acquisition and Improvement Fund or fund of a similar name established pursuant to a Fiscal Agent Agreement to hold the net proceeds of Bonds available to pay the Purchase Price for Facilities or Discrete Components. “Local Goals and Policies” means the City’s policy regulating the use of public financing mechanisms to finance public facilities, dated April 7, 2015, as may be amended from time to time. “Owner” means Marina Station Phases 1 and 2, LLC a Delaware limited liability company, its successors, and its assigns (to the extent allowed or permitted under Section 10.7 hereof). “PayGo Account” means accounts which hold the PayGo Special Taxes, whether held by the City or the Trustee.
“PayGo Special Taxes ” means Special Taxes levied on Developed Property within each Improvement Area pursuant to the Rate and Method (a) prior to the issuance of Bonds and/or (b) after the issuance of Bonds , in excess of the amount needed to pay the amounts described in clauses (i) through (v) of the definition of “Facilities Special Tax Requirement” set forth in the applicable Rate and Method.
“Payment Request” means a document, substantially in the form attached as Exhibit C hereto, to be used by the Owner in requesting payment of a Purchase Price. “Plans” means the plans, specifications, schedules and related construction contracts for the Facilities and/or any Discrete Components thereof which shall be submitted to and approved by the City pursuant to the applicable standards of the City or other entity that will own, operate or maintain the Facilities when completed and acquired.

Attachment 6
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4910-7310-6811/202027-0002
“Project” means the Marina Station project, a residential project located in the City of Marina that is planned for 887 single family attached and detached units. “Public Improvement Agreement” means one or more Public Improvement Agreements between the City and the Owner that relates to the Project. “Purchase Price” means the amount paid by the City for a Facility and/or any Discrete Components thereof determined in accordance with Article V hereof, being an amount equal to the Actual Cost of such Facility or Discrete Component, but subject to the lim itations and reductions provided for in Article V.
“Rate and Method” means , for each Improvement Area, the Rate and Method of Apportionment of Special Taxes that are approved by the qualified electors of such Improvement Area. “Special Taxes” means the Facilities Special Tax levied on and collected from Assessor’s Parcels classified as Developed Property pursuant to a Rate and Method, including any prepayments of the Facilities Special Tax that are allocated for the payment of improvements pursuant to a Rate and Method.
“Supplement” means a written document amending, supplementing or otherwise modifying this Acquisition Agreement and any exhibit hereto, including any amendments to the list of Facilities and Discrete Components in Exhibit B, and/or the addition to Exhibit A or Exhibit B of additional Facilities (and Discrete Components) to be financed with the CFD Sources.

ARTICLE II

RECITALS
Section 2.1 The District.

The City Council of the City has established the District, designated Improvement Area No. 1, and designated the Future Annexation Area under the Act for the financing of, among other things, the acquisition, construction and installation of public facilities identified in the proceedings to form the District, which include the Facilities listed in Exhibit A hereto.

Section 2.2 The Development.

The Project is expected to be developed with 887 single family attached and detached units.

This Acquisition Agreement applies to the District as a whole, including Improvement Area No. 1 and any Future Improvement Area.

Section 2.3 The Facilities.

The Facilities are within or in the vicinity of the District, and the City and the Owner will benefit from a coordinated plan of design, engineering and construction of the Facilities and the development of the land. The Owner acknowledges that the inclusion of Facilities in Exhibit A hereto in no way, in itself, obligates the City to issue any Bonds to acquire the Facilities from the Owner or implies that the City has in any way engaged the Owner to construct the Facilities. The facilities which are eligible for acquisition by the City from the Owner under this Acquisition Agreement are only the Facilities listed in Exhibit A hereto and the Discrete Components listed in Exhibit B hereto, as such Exhibits may be amended and/or supplemented by any Supplement.

Attachment 6
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Section 2.4 The Financing.

The Owner and the City wish to finance the acquisition of the Facilities and the payment therefor by entering into this Acquisition Agreement for the acquisition of the Facilities and payment for Discrete Components thereof as shown in Exhibit B hereto (as it may be amended and supplemented by any Supplement) with the CFD Sources.

Section 2.5 The Bonds.

The City may proceed with the authorization and issuance of the Bonds in one or more series under the Act and the applicable Fiscal Agent Agreement, the proceeds of which Bonds shall be used, in part, to finance the acquisition of all or a portion of the Facilities. The execution by the City of this Acquisition Agreement in no way obligates the City to issue any Bonds, or to acquire any Facilities with proceeds of any Bonds issued, except the Facilities listed in Exhibit A and Exhibit B hereto which are to be acquired or financed subject to the terms and conditions set forth in this Acquisition Agreement.

Section 2.6 No Advantage to City Construction.

The City, by its approval of this Acquisition Agreement, has determined that it will obtain no advantage from undertaking the construction by the City directly of the Facilities, and that the provisions of this Acquisition Agreement require that the Facilities be constructed by the Owner as if they had been constructed under the direction and supervision of the City . T he Owner hereby represents that it has experience in the supervision of the construction of improvements of the character of the Facilities.

Section 2.7 Agreements.

In consideration of the mutual promises and covenants set forth herein, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City and the Owner agree that the foregoing recitals, as applicable to each, are true and correct and further make the agreements set forth herein.

ARTICLE III

FUNDING
Section 3.1 City Proceeding.

Upon the written request of the Owner, the Owner and the City staff shall meet regarding the amount, timing and other material aspects of each series of the Bonds. The legal proceedings for the issuance of the Bonds and the series, principal amounts, rates, terms, conditions and timing of the sale of the Bonds shall be in all respects solely determined by the City Council of the City, acting as the governing body of the District, in its sole discretion; provided that, subject to satisfaction of the applicable City financing policies, including the Local Goals and Policies, sound municipal financing practices and the requirements of this Acquisition Agreement, the City shall use reasonable efforts to issue and sell the Bonds in one or more series in an amoun t sufficient to fund the Facilities in accordance with this Acquisition Agreement and the Owner’s schedule for development of its property within the District.

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Section 3.2 Levy of Special Taxes.

Determined separately for each Improvement Area, City and Owner agree that in each fiscal year prior to the issuance of Bonds for an Improvement Area the Special Taxes shall be levied in such Improvement Area at the rate specified in Table 1 of the Rate and Method on each Assessor’s Parcel classified as Developed Property , generating PayGo Special Taxes . Such PayGo Special Taxes received by the City that are not required to fund Administrative Expenses shall be deposited in a discrete, special fund of the City (which shall constitute a PayGo Account) and shall be disbursed to fund Facilities in accordance with this Acquisition Agreement.

Upon sale and delivery of the Bonds, the City shall annually levy the Special Tax as provided for in the applicable Rate and Method Fiscal Agent Agreement. Notwithstanding any other provision of this Agreement, following the issuance of the first series of Bonds for an Improvement Area , the City shall have the right, but no obligation, to levy PayGo Special Taxes in such Improvement Area to reimburse the Developer for the costs of any Improvements not paid for from Bond proceeds for such Improvement Area. Calculated separately for each Improvement Area, the City and Owner agree that the City does not intend to levy PayGo Special Taxes in an Improvement Area following the tenth (10th) anniversary of the issuance of the first series of Bonds for such Improvement Area Prepayment amounts received pursuant to Section H of the Rate and Method for an Improvement Area that are not applied to redeem Bonds or pay Administrative Expenses shall be deposited to the Improvement Fund (not the PayGo Account) and shall be available for funding Facilities.

This Agreement does not restrict or address the District’s levy of the Services Special Tax described in the Rate and Method.

Section 3.3 Bonds.

The City, in connection with this Acquisition Agreement, shall , from time to time, proceed with the issuance and delivery of the Bonds for each Improvement Area of the District. The City shall not be obligated to pay the Purchase Price of the Facilities or any Discrete Components thereof except from CFD Sources. T he City makes no warranty, express or implied, that the CFD Sources will be sufficient for payment of the Purchase Price of all of the Facilities.

Section 3.4 Bond Proceeds.

The proceeds of the Bonds shall be deposited, held, invested, reinvested and disbursed as provided in the applicable Fiscal Agent Agreement. A portion of the proceeds of the Bonds will be set aside under the applicable Fiscal Agent Agreement in an Improvement Fund . M oneys in an Improvement Fund shall be withdrawn therefrom in accordance with the provisions of the applicable Fiscal Agent Agreement and the applicable provisions hereof for payment of all or a portion of the costs of construction and/or acqui sition of the Facilities (including payment of the Purchase Price of Discrete Components thereof), all as herein provided.

The Owner acknowledges that any lack of availability of CFD Sources to pay the Purchase Price of Facilities or any Discrete Components thereof shall in no way diminish any obligation of the Owner with respect to the construction of or contributions for public facilities and mitigation measures required by the Conditions of Approval.

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Section 3.5 Disclosure of Special Tax.

Copies of the executed “Notice of Special Tax” required by California Government Code Section 53341.5 provided to the purchaser of real property within the District shall be provided to the Finance Director upon request for such Notice of Special Tax. The Finance Director’s receipt of such “Notice of Special Tax” shall not be construed as City or District approval of the form of Notice of Special Tax or in any way make the City or District liable for deficiencies in such “Notice of Special Tax.”
Prior to the Bonds being issued for an Improvement Area , the Owner will be required to provide all information regarding the development of its property within such Improvement Area, including the financing plan for such development, which is necessary to ensure that the official statement for such Bonds complies with the requirements of all applicable federal and state securities laws, including without limitation Rule l5c2-12 and R ule l0(b)-5 of the Securities and Exchange Commission (the “Commission”). Owner may be required to obtain counsel to review such official statement and render an opinion in connection with the Bond issue in a form reasonably acceptable to the City. Moreover, each property owner that owns taxable property within an Improvement Area that is responsible for approximately twenty percent (20%) or more of the maximum special tax within such Improvement Area at the time the Bonds are issued for such Improvement Area (each referred to as a “Major Landowner”) will be required to enter into a continuing disclosure agreement to provide such continuing disclosure pertaining to the development of the land owned by such Major Landowner in the District if necessary to as sist the underwriter of the Bonds in complying with the continuing disclosure requirements of Rule 15c2-12 of the Commission, or prudent given market conditions for the Bonds in the reasonable opinion of the underwriter or disclosure counsel.

ARTICLE IV

CONSTRUCTION OF FACILITIES
Section 4.1 Plans.

To the extent that it has not already done so, the Owner shall cause Plans to be prepared for the Facilities. T he Owner shall obtain the City’s written approval of the Plans in accordance with applicable ordinances and regulations of the City and/or the public entity that will own and operate the Facilities. Copies of all Plans shall be provided by the Owner to the Director upon request therefor, and, in any event, a written assignment of the Plans for any Facility shall be provided to the City prior to its acceptance of the Facility and as built drawings shall be provided to the City within 60 calendar days of such acceptance.

Section 4.2 Duty of Owner to Construct.

All Facilities to be acquired hereunder shall be constructed by or at the direction of the Developer in accordance with the Conditions of Approval . T his Acquisition Agreement does not create a separate duty to construct the Facilities; rather this Acquisition Agreement sets out the conditions that must be satisfied if the Developer seeks to have the Facilities financed by the CFD Sources.

All Facilities and Discrete Components thereof to be acquired hereunder specified in Exhibit B hereto, as supplemented from time to time, shall be constructed at the direction of the Owner in accordance with the approved Plans. The Owner shall employ at all times adequate staff or consultants Attachment 6
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with the requisite experience necessary to administer and coordinate all work related to the design, engineering, acquisition, construction and installation of the Facilities to be acquired by the City from the Owner hereunder.

To the extent required by the Conditions of Approval, the Owner shall be obligated: (i) to cause the construction and cause conveyance to the City (or other applicable governmental agency) of all Facilities and Discrete Components thereof listed in Exhibit B hereto, and (ii) to use its own funds to pay all costs thereof in excess of the Purchase Prices thereof to be paid hereunder, if any.

Except as set forth in the following paragraph, the Owner shall not be relieved of its obligation under the Conditions of Approval to cause the construction of each Facility and Discrete Component thereof listed in Exhibit B hereto and convey each such Facility and Discrete Component to the City in accordance with the terms, hereof, even if, (i) because of the limitations imposed by S ection 5.6 hereof, the Purchase Price for such Discrete Component or Facility is less than the Actual Cost, or cost to the Ow ner, of such Discrete Component or Facility, or (ii) there are no CFD Sources to pay the Purchase Prices thereof, and, in any event, this Acquisition Agreement shall not affect any obligation of any owner of land in the District under any Conditions of Approval , with respect to the public improvements required in connection with the development of the land within the District.

Section 4.3 Relationship to Public Works.

This Acquisition Agreement is for the acquisition by the City of the Facilities and payment for Discrete Components thereof listed in Exhibit B hereto from CFD Sources and is not intended to be a public works contract. The Owner acknowledges and agrees that the Facilities shall be constructed as if the Facilities had been constructed under the direction and supervision, or under the authority of, the City by adhering to the provisions of this Acquisition Agreement, and the Owner shall adhere to all applicable requirements of the City’s municipal code and the Public Improvement Agreement in the construction of the Facilities.

From time to time at the request of the Director, the Owner shall meet and confer with City staff, consultants and contractors regarding matters arising hereunder with respect to the Facilities, Discrete Components and the progress in constructing and acqu iring the same, and as to any other matter related to the Facilities or this Acquisition Agreement. The Owner shall advise the Director in advance of any coordination and scheduling meetings to be held with contractors relating to the Facilities, in the o rdinary course of performance of an individual contract . T he Director or the Director’s designated representative shall have the right to be present at such meetings, and to meet and confer with individual contractors if deemed advisable by the Director to resolve disputes and/or ensure the proper completion of the Facilities.

This Section 4.3 applies to all direct contracts to be entered into by the Owner under this Section 4. This Section 4.3 does not apply to the purchase of materials by the Owner or any contractor or for professional services associated with the construction of Facilities.

Notwithstanding the foregoing provisions, contract letting procedures that differ from the procedures in this Section 4.3 shall be deemed to satisfy this Acquisition Agreement if the Owner and the Director agree in writing on such other contract letting procedures.

In some cases, without assigning all of any part of this Acquisition Agreement, the Developer may use an affiliated or unaffiliated entity to construct Facilities . For purposes of this Agreement, Attachment 6
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Facilities constructed by Developer’s affiliated or unaffiliated entity are referred to as “Third -Party Facilities.” The City agrees that so long as the Third-Party Facilities are constructed in accordance with the provisions of this Acquisition Agreement and the Conditions of Approval, the Third-Party Facilities may be financed by available CFD Sources notwithstanding that the Third -Party Facilities being acquired hereunder will be purchased from an affiliated or unaffiliated entity and that the affiliated or unaffiliated entity bid and entered into, and paid the costs under, the contracts for the constructed Third- Party Facilities. Developer agrees that, notwithstanding its use of an affiliated or unaffiliated entity for the described purposes, Developer shall remain liable to the City for all aspects of the Third-Party Facilities’ compliance with the terms of this Acquisition Agreeme nt and the Conditions of Approval, in the same manner and to the same extent as if the Third -Party Facilities were construct ed by the Developer.

Section 4.4 Independent Contractor.

In performing this Acquisition Agreement, the Owner is an independent contractor and not the agent or employee of the City . T he City shall not be responsible for making any payments to any contractor, subcontractor, agent, consultant, employee or supplier of the Owner.

Section 4.5 Performance and Payment Bonds.

The Owner agrees to comply with all applicable performance and mechanics and materialmen bonding requirements of the City (and other applicable public entities and/or public utilities) with respect to the construction of the Facilities, in accordance with the Public Improvement Agreement.

Section 4.6 Contracts and Change Orders.

The Owner shall be responsible for entering into all contracts and any supplemental agreements (commonly referred to as “change orders”) required for the construction of the Facilities listed in Exhibit A hereto, as amended from time to time, and all such contracts and change orders shall be submitted to the Director. Prior approval of change orders by the Director shall only be required for such change orders which in any way materially alter the quality or character of the subject Facilities, or which involve an amount equal to the greater of ten percent (10%) of the amount of the construction contract price for the Facility involved or $100,000. The City expects that such change orders needing prior approval by the Director will be approved or denied (any such denial to be in writing, stating the reasons for denial and the actions, if any, that can be taken to obtain later approval) within t en (10) business days of receipt by the Director thereof.

Section 4.7 Time for Completion.

The Owner agrees that this Acquisition Agreement is for the benefit of the City and the Owner and, therefore, the Owner represents that it expects to complete the Facilities and to have requested payment for the Facilities under this Acquisition Agreement within three years from the date of the closing of Bonds issued to finance such Facilities. Any failure to complete the Facilities within said time period shall not, however, in itself, constitute a breach by the Owner of the terms of this Acquisition Agreement.

The Owner agrees to use its good faith efforts to complete all Facilities within three years from the date of closing of Bonds issued to finance such Facilities.

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ARTICLE V

ACQUISITION AND PAYMENT
Section 5.1 Inspection.

No payment hereunder shall be made by the City to the Owner for a Facility or Discrete Component thereof until the Facility or Discrete Component thereof has been inspected and found to be completed in accordance with the approved Plans by the City or othe r applicable public entity or utility. The City shall make or cause to be made periodic site inspections of the Facilities to be acquired hereunder on a timely basis; provided that in no event shall the City incur any liability for any delay in the inspection of any Facilities or Discrete Components. For Facilities to be acquired by other public entities or utilities, the Owner shall be responsible for obtaining such inspections and providing written evidence thereof to the Director. The Owner agrees to pay all inspection, permit and other similar fees of the City applicable to construction of the Facilities.

Section 5.2 Agreement to Sell and Acquire Facilities.

If constructed pursuant to the Conditions of Approval, t he Owner hereby agrees to sell the Facilities and Discrete Component listed in Exhibit B hereto to the City (or other applicable public agency that will own such Facility and Discrete Component), and the City hereby agrees to use CFD Sources to pay the Purchase Prices thereof to the Owner, subject to the terms and conditions hereof .

The City shall not be obligated to acquire any Facility or Discrete Component until the Facility or Discrete Component is completed and the Acceptance Date for such Facility has occurred. The Owner acknowledges that the Discrete Components have been identified for payment purposes only, and that the City (or other applicable public agency that will own a Facility) shall not accept a Facility of which a Discrete Component is a part until the entire Facility has been completed . The City acknowledges that the Discrete Components do not have to be accepted by the City (or other applicable public agency that will own a Facility ) as a condition precedent to the payment of the Purchase Price therefor, but any such payment shall not be made until the Facility or Discrete Component has been completed in accordance with the Plans therefor, as determined by the Director. In any event, the City shall not be obligated to pay the Purchase Price for any Facility or Discrete Component except from CFD Sources.

Section 5.3 Payment Requests.

In order to receive the Purchase Price for a completed Facility or Discrete Component, inspection thereof under Section 5.1 shall have been made and the Owner shall deliver to the Director:
(i) a Payment Request in the form of Exhibit C hereto for such Facility or Discrete Component, together with all attachments and exhibits required by Exhibit C and this Section 5.3 to be included therewith (including, but not limited to Attachments 1 and 2 to Exhibit C), and (ii) if payment is requested for a completed Facility, (a) if the property on which the Facility is located is not owned by the City (or other applicable public agency that will own the Facility) at the time of the request, a copy of the recorded documents conveying to the City (or other applicable public agency that will own the Facility) Acceptable Title to the real property on, in or over which such Facility is located, as described in Section 6.1 hereof, (b) a copy of the recorded notice of completion of such Facility (if applic able), and (c) an assignment of warranties and guaranties for such Facility, as described in Section 6.5 hereof, in a form acceptable to the City.

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Section 5.4 Processing Payment Requests.

Upon receipt of a Payment Request (and all accompanying documentation), the Director shall conduct a review in order to confirm that such request is complete, that such Discrete Component or Facility identified therein was constructed in accordance with th e Plans therefor, and to verify and approve the Actual Cost of such Discrete Component or Facility specified in such Payment Request .

The Director shall also conduct such review as is required in his discretion to confirm the matters certified in the Payment Request. The Owner agrees to cooperate with the Director in conducting each such review and to provide the Director with such additional information and documentation as is reasonably necessary for the Director to conclude each such review. For any Facilities to be acquired by another public entity or utility, the Owner shall provide evidence acceptable to the Director that such Facilities are acceptable to such entity or utility . Within thirty (30) calendar days of receipt of any Payment Request, th e Director expects to review the request for completeness and notify the Owner whether such Payment Request is complete, and, if not, what additional documentation must be provided. If such Payment Request is complete, the Director expects to provide a written approval or denial (specifying the reason for any denial) of the request within thirty (30) calendar days of its submittal. I f a Payment Request seeking reimbursement for more than one Facility or Discrete Component is denied, the Director shall sta te whether the Payment Request is nevertheless approved and complete for each of the Facilities or Discrete Components and any such Facilities or Discrete Components that do not require additional information shall be processed for payment under Section

5.5 notwithstanding such partial denial . T he District’s costs (or the City’s costs on behalf of the District) associated with the acquisition of Facilities and processing of Payment Requests shall be payable by the Developer and shall be considered an Actua l Cost of a Facility , which may be later reimbursed to the Owners out of CFD Sources.

Section 5.5 Payment.

Upon approval of the Payment Request by the Director, the Director shall sign the Payment Request and forward the same to the Finance Director of the City . Upon receipt of the reviewed and fully signed Payment Request, the Finance Director of the City shall, within thirty (30) calendar days of receipt of the approved Payment Request, , shall pay as follows:

A. If prior to the Acceptance Date for such Facility or Discrete Component, (i) 90% of the Purchase Price of the Facility or Discrete Component, and (ii) the remaining 10% within thirty (30) days of the Acceptance Date; and
B. If after the Acceptance Date for such Facility or Discrete Component, 100% of the Purchase Price of the Facility or Discrete Component.

In each case, the Purchase Price shall be paid by the City from CFD Sources. Any approved Payment Request not paid due to an insufficiency of CFD Sources at the time of payment shall be paid promptly from CFD Sources as additional CFD Sources become available.

The total Purchase Price paid hereunder (in any number of installments) for any Facility or Discrete Component shall constitute payment in full for such Facility or Discrete Component, including, without limitation, payment for all labor, materials, equipment, tools and services used or incorporated in the work, supervision, administration, overhead, expenses and any and all other things required, furnished or incurred for completion of such Facility or Discrete Component, as specified in the Plans.

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Section 5.6 Restrictions on Payments.

Notwithstanding any other provisions of this Acquisition Agreement, the following restrictions shall apply to any payments made to the Owner under Sections 5.2 and 5.5 hereof:
(a) Amounts of Payments.

Subject to the following paragraphs of this Section 5.6, payments for each Discrete Component or Facility will be made only in the amount of the Purchase Price for the respective Discrete Component or Facility whether or not the Actual Cost exceeds the Estimated Cost therefor (it being understood that the Estimated Costs are only estimates and not limitations on the amount of the Purchase Price).

Nothing herein shall require the City in any event (i) to pay more than the Actual Cost of a Facility or Discrete Component, or (ii) to make any payment beyond the CFD Sources. T he parties hereto acknowledge and agree that all payments to the Owner for the Purchase Prices of Facilities or Discrete Components are intended to be reimbursements to the Owner for monies already expended or for immediate payment by the Owner (or directl y by the City) to third parties in respect of such Facilities and/or Discrete Components.
(b) Joint or Third Party Payments.

The City may make any payment jointly to the Owner and any mortgagee or trust deed beneficiary, contractor or supplier of materials, as their interests may appear, or solely to any such third party, if the Owner requests the same in writing.
(c) Withholding Payments.

The City shall be entitled, but shall not be required, to withhold any payment hereunder for a Discrete Component or a Facility if the Owner or any Affiliate is then-delinquent in the payment of ad valorem real property taxes, special assessments or taxes, or special taxes levied in the District. In the event of any such delinquency, the City shall only make payments hereunder, should any be made at the City’s sole discretion, directly to contractors or other third parties employed in connection with the construction of the Facilities or to any assignee of the Owner’s interests in this Acquisition Agreement (and not to the Owner or any Affiliate), until such time as the Owner provides the Director with evidence that all such delinquent taxes and assessments have been paid.

The City shall withhold the final 10% portion of the Purchase Price of a Facility or Discrete Component of a Facility (described in Section 5.5.A(ii)) constructed on land, until Acceptable Title to such land is conveyed to the City or other public entity that will own the respective Facility or Discrete Component, as described in Article VI hereof.

The City shall be entitled to withhold any payment hereunder for a Discrete Component that is the subject of a Payment Request until it is satisfied that any and all claims for labor and materials have been paid by the Owner for the Discrete Component that is the subject of a Payment Request, or conditional lien releases have been provided by the Owner for such Discrete Component. The City, in its discretion, may waive this limitation upon the provision by the Owner of sureties, undertakings, securities an d/or bonds of the Owner or appropriate contractors or subcontractors and deemed satisfactory by the Director to assure payment of such claims.

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The City shall be required to pay the remaining 10% portion of the Purchase price for a Facility or Discrete Component described in Section 5.5.A(ii ) when: (i) the Director determines that the Facility is ready for its intended use, (ii) the Acceptance Date for the Facility has occurred and the requirements of Section 6.1, if applicable to such Facility, have been satisfied, and (iii) a Notice of Completion executed by the Owner, in a form acceptable to the Director, has been recorded for the Facility and general lien releases conditioned solely upon payment from the proceeds of the Bonds to be used to acquire such Facility (or Discrete Component) have been submitted to the Director for the Facility. The City hereby agrees that the Owner shall have the right to post or cause the appropriate contractor or subcontractor to post a bond with the City to indemnify it for any losses sustained by the City because of any liens that may exist at the time of acce ptance of such a Facility, so long as such bond is drawn on an obligor and is otherwise in a form acceptable to the Director . The City shall be entitled to withhold payment for any Facility (or the final Discrete Component of any such Facility) to be owned by other governmental entities, until the Owner provides the Director with evidence that the governmental entity has accepted dedication of and/or title to the Facility. If the Director determines that a Facility is not ready for intended use under (i) above, the Director shall so notify the Owner as soon as reasonably practicable in writing specifying the reason(s) therefor.

Nothing in this Acquisition Agreement shall be deemed to prohibit the Owner from contesting in good faith the validity or amount of any mechanics or materialman’s lien nor limit the remedies available to the Owner with respect thereto so long as such delay in performance shall not subject the Facilities or any Discrete Component thereof to foreclosure, forfeiture or sale . In the event that any such lien is contested, the Owner shall only be required to post or cause the delivery of a bond in an amount equal to the amount in dispute with respect to any such contested lien, so long as such bond is drawn on an obligor and is otherwise in a form acceptable to the Director. (d) Frequency.

Unless otherwise agreed to by the Director, no more than one Payment Request shall be submitted by the Owner in any calendar month.

Section 5.7 Defective or Nonconforming Work.

If any of the work done or materials furnished for a Facility or Discrete Component are found by the Director to be defective or not in accordance with the applicable Plans: (i) and such finding is made prior to payment for the Purchase Price of such Faci lity or Discrete Component hereunder, the City may withhold payment therefor until such defect or nonconformance is corrected to the satisfaction of the Director, or (ii) and such finding is made after payment of the Purchase Price of such Facility or Discrete Component, the City and the Owner shall act in accordance with the City’s standard specification for public works construction.

Section 5.8 Modification of Discrete Components.

The City and Owner understand and agree that Exhibit B will be supplemented from time to time as the Project progress and the identification and components of the Facilities become known in the future. From time to time, the Owner may submit to the Director a revised Exhibit B for the purpose of adding additional Facilities and Discrete Components that are otherwise authorized by Exhibit A and/or updating the Estimated Costs for one or more Discrete Components and Facilities that are eligible to be financed. Such revised Exhibit B shall replace the original Exhibit B in its entirety. Any such modification shall be subject to the written approval of the Director which shall not be Attachment 6
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unreasonably withheld. Supplements to modify this Acquisition Agreement in accordance with this Section 5.8 may be approved by the Director without further City Council action.

Section 5.9 Payments of Purchase Price of Facilities or Discrete Components in Installments.

The City understands and agrees that (i ) Owner will be constructing Facilities or Discrete Components prior to the availability of CFD Sources that will be used to pay for such Facilities or Discrete Components, (ii ) the City may be inspecting such Facilities or Discrete Components and processing and completing payment requests for the payment on such Facilities or Discrete Components with knowledge that there may be insufficient CFD Sources available at such time, (iii) the Facilities or Discrete Component s may be conveyed to and accepted by the City when there are insufficient CFD Sources to pay the Purchase Prices of such Facilities or Discrete Components, and (iv) in any such case, the payment of any approved payment requests for the Purchase Prices of such Facilities or Discrete Components will be deferred until there are CFD Sources available to pay all or a portion of the Purchase Prices of such Facilities or Discrete Components (if ever, subject to the terms and conditions set forth in this Acquisitio n Agreement), at which time the City will make such payments in accordance with this Acquisition Agreement, subject to the limitations set forth in this Acquisition Agreement . At all times, Owner will be constructing such Facilities or Discrete Components with the expectation that the Purchase Prices for such Facilities or Discrete Components will be paid solely from and limited to the CFD Sources. The conveyance of Facilities or Discrete Components to the City prior to receipt of the Purchase Prices for such Facilities or Discrete Components shall not be construed as a dedication or gift, or a waiver of the payment of the Purchase Prices, or any part thereof, for such Facilities or Discrete Components . The Purchase Price paid hereunder for any Facility or Discrete Component thereof may be paid in any number of installments as CFD Sources become available.

ARTICLE VI

OWNERSHIP AND TRANSFER OF FACILITIES
Section 6.1 Facilities to be Owned by the City-Conveyance of Land and Easements to City.

Acceptable Title to all property on, in or over which each Facility to be acquired by the City will be located, shall be deeded over to the City by way of grant deed, or dedication of such property, or easement thereon, if such conveyance of interest is approved by the City as being a sufficient interest therein to permit the City to properly own, operate and maintain such Facility located therein, thereon or thereover, and to permit the Owner to perform its obligations as set forth in this Acquisition Agreement. The Owner agrees to assist the City in obtaining such documents as are required to obtain Acceptable Title. Completion of the transfer of title to land shall be accomplished prior to the payment of the Purchase Price for a Facility (or the last Discrete Component thereof) and shall be evidenced by recordation of the acceptance thereof by the City Council or the designee thereof.

Section 6.2 Facilities to be Owned by the City-Title Evidence.

Upon the request of the City, the Owner shall furnish to the City a preliminary title report for land with respect to Facilities to be acquired by the City and not previously dedicated or otherwise conveyed to the City, for review and approval at least thirty (30) calendar days prior to the transfer of the Acceptable Title to a Facility to the City. The City shall approve the preliminary title report unless it reveals a matter which, in the judgment of the City, could materially affect the City’s use and enjoyment of any part of the property or easement covered by the preliminary title report. In the event Attachment 6
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the City does not approve the preliminary title report, the City shall not be obligated to accept title to such Facility or pay the Purchase Price for such Facility (or the last Discrete Component thereof) until the Owner has cured such objections to title to the reasonable satisfaction of the City. In the event the Owner cannot cure such objections to title, City agrees to consider the use of eminent domain pursuant to Section 6.3 hereof for such purpose . If any real property is within the boundaries of any existing community facilities district (including the District), an assessment district, or other financing district, then the lien of the special taxes or assessments shall be a permitted exception to title so long as the property owned by the City or other public agency is exempt from the special tax or assessments to be levied by the community facilities district, assessment district, or other financing district.

Section 6.3 Facilities Constructed on Private Lands.

If any Facilities to be acquired are located on privately -owned land, the owner thereof shall retain title to the land and the completed Facilities until acquisition of the Facilities under Article V hereof. Pending the completion of such transfer, the Owner shall not be entitled to receive any payment for any such Facility or the last Discrete Component thereof . The Owner shall, however, be entitled to receive payment for Discrete Components (other than the last Discrete Component) upon making an irrevoc able offer of dedication of such land in form and substance acceptable to the Director .

Notwithstanding the foregoing, upon written request of the City before payment for any Discrete Component of such a Facility, the Owner shall convey or cause to be conveyed Acceptable Title thereto in the manner described in Sections 6.1 and 6.2 hereof.

It shall be the responsibility of the Owner to acquire all property rights on property which is not owned by the City or the Owner which is necessary for the construction of any of the Facilities. In the event, despite its exercise of best efforts to do so, the Owner is unable to acquire such property rights, the City shall in good faith consider the undertaking of proceedings to acquire such property rights through its exercise of the power of emine nt domain, and the costs of such proceedings and acquisition shall be the responsibility of the Owner and shall comprise part of the Purchase Price of the related Facility.

Section 6.4 Facilities Constructed on City Land.

If the Facilities to be acquired are on land owned by the City, including land as to which the City has acquired sufficient property rights in the manner described in Section 6.3 or otherwise, the City hereby grants to the Owner a license to enter upon suc h land for purposes related to the construction (and maintenance pending acquisition) of the Facilities . T he provisions for inspection and acceptance of such Facilities otherwise provided herein shall apply.

Section 6.5 Facilities to be Acquired by Other Public Agencies.

With respect to any Facility to be acquired by a public entity other than the City, the Owner shall comply with such entities rules and regulations regarding title and conveyance of property, and provide the Director with evidence of such compliance, prior to the payment of the Purchase Price for any such Facility or Discrete Component thereof.

Section 6.6 Maintenance and Warranties.

The Owner shall maintain or cause to be maintained each Facility and Discrete Component in good and safe condition until the Acceptance Date of the Facility or Discrete Component. Prior to the Attachment 6
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Acceptance Date, the Owner shall be responsible for performing any required maintenance on any completed Discrete Component or Facility . O n or before the Acceptance Date of the Facility, the Owner shall assign to the City all of the Owner’s rights in any warranties, guarantees, maintenance obligations or other evidence of contingent obligations of third persons with respect to such Facility .

For each Facility to be owned by the City, the Owner shall provide the warranty bonds required by the Conditions of Approval.

ARTICLE VII

INSURANCE
Section 7.1 Insurance Requirements.

The Owner shall, at all times prior to the final Acceptance Date of all Facilities, maintain and deliver to the City the insurance required by the Conditions of Approval.

ARTICLE VIII

REPRESENTATIONS, WARRANTIES AND COVENANTS
Section 8.1 Representations, Covenants and Warranties of the Owner.

The Owner represents and warrants for the benefit of the City, as follows:
(a) Organization.

The Owner is a limited liability company duly organized and validly existing under the laws of the State of Delaware, is duly qualified to conduct business and is in good standing in the State of California, and has the power and authority to own its properties and assets and to carry on its business as now being conducted and as now contemplated. (b) Authority.

The Owner has the power and authority to enter into this Acquisition Agreement, and has taken all action necessary to cause this Acquisition Agreement to be executed and delivered, and this Acquisition Agreement has been duly and validly executed and delivered by the Owner. (c) Binding Obligation.

This Acquisition Agreement is a legal, valid and binding obligation of the Owner, enforceable against the Owner in accordance with its terms, subject to bankruptcy and other equitable principles.
(d) Compliance with Laws.

The Owner shall not with knowledge commit, suffer or permit any act to be done in, upon or to the lands of the Owner in the District or the Facilities in violation of any law, ordinance, rule, regulation or order of any governmental authority or any covena nt, condition or restriction now or hereafter affecting the lands in the District or the Facilities.

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(e) Requests for Payment.

The Owner represents and warrants that (i) it will not request payment from the City for the acquisition of any improvements that are not part of the Facilities, and (ii) it will diligently follow all procedures set forth in this Acquisition Agreement with respect to the Payment Requests. (f) Financial Records.

Until the final acceptance of the Facilities, the Owner covenants to maintain proper books of record and account for the construction of the Facilities and all costs related thereto , which accounting books shall be maintained in accordance with generally accepted accounting principles, and shall be available for inspection by the City or its agent at any reasonable time during regular business hours on reasonable notice.
(g) Prevailing Wages.

The Owner covenants that, with respect to any contracts or subcontracts for the construction of the Facilities to be acquired from the Owner hereunder, it will assure complete compliance with any applicable law or regulation for the payment of prevailing w ages for such construction.
(h) Plans.

The Owner represents that it has obtained or will obtain approval of the Plans for the Facilities to be acquired from the Owner hereunder from all appropriate departments of the City and from any other public entity or public utility from which such approval must be obtained. The Owner further agrees that the Facilities to be acquired from the Owner hereunder have been or will be constructed in full compliance with such approved plans and specifications and any supplemental agreements (change orders) thereto, as approved in the same manner. (i) Land Owners.

The Owner agrees that in the event that it sells any land owned by it within the boundaries of the District, the Owner will (i) notify the purchaser in writing prior to the closing of any such sale of the existence of this Acquisition Agreement and the Own er’s rights and obligations assigned to the purchaser with respect to the construction of and payment for the Facilities, and (ii) notify the purchaser in writing of the existence of the District and the special tax lien in connection therewith.

Section 8.2 Indemnification and Hold Harmless.

The Owner shall assume the defense of, indemnify and save harmless the City, members of the City Council, their officers, officials, employees and agents and each of them, from and against all actions, damages, claims, losses or expense of every type and d escription to which they may be subjected or put, by reason of, or resulting from the breach of any provision of this Acquisition Agreement by the Owner, the Owner’s or any other entity’s negligent design, engineering and/or construction of any of the Faci lities acquired from the Owner hereunder, the Owner’s non -payment under contracts between the Owner and its consultants, engineer’s, advisors, contractors, subcontractors and suppliers in the provision of the Facilities, or any claims of persons employed b y the Owner or its agents to construct the Facilities. Notwithstanding the foregoing, no indemnification Attachment 6
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is given hereunder for any action, damage, claim, loss or expense directly attributable to the intentional acts or negligence of the City, or its officers, directors, employees or agents hereunder.

No provision of this Acquisition Agreement shall in any way limit the Owner’s responsibility for payment of damages resulting from the operations of the Owner, its agents, employees or its contractors.

ARTICLE IX

TERMINATION
Section 9.1 Mutual Consent.

This Acquisition Agreement may be terminated by the mutual, written consent of the City and the Owner, in which event the City may let contracts for any remaining work related to the Facilities not theretofore acquired from the Owner hereunder, and use all or any portion of the monies in the Improvement Fund and the PayGo Account to pay for same, and the Owner shall have no claim or right to any further payments for the Purchase Price of Facilities or Discrete Components hereunder, except as otherwise may be provided in such written consent.

Section 9.2 City Election for Cause.

The following events shall constitute grounds for the City, at its option and in its sole discretion, to terminate this Acquisition Agreement, without the consent of the Owner:
(a) The Owner shall voluntarily file for reorganization or other relief under any Federal or State bankruptcy or insolvency law.
(b) The Owner shall have any involuntary bankruptcy or insolvency action filed against it, or shall suffer a trustee in bankruptcy or insolvency or receiver to take possession of the assets of Owner, or shall suffer an attachment or levy of execution to be mad e against the property it owns within the District unless, in any of such cases, such circumstance shall have been terminated or released within ninety (90) days thereafter.
(c) The Owner shall abandon construction of the Facilities. Failure for a period of three hundred sixty -five (365) days to undertake substantial work related to the construction of the Facilities as required by the Conditions of Approval , other than for a reason specified in Section 9.3 hereof, shall constitute such abandonment, it being understood that delays or stoppages approved by the City and Owner shall not constitute abandonment.
(d) The Owner shall breach any material covenant or default in the performance of any material obligation hereunder.
(e) The Owner shall transfer any of its rights or obligations under this Acquisition Agreement in violation of Section 10.7 herein.
(f) The Owner shall have made any intentional material misrepresentation or omission of any written materials furnished in connection with any preliminary official statement, official statement or bond purchase contract used in connection with the sale of any series of the Bonds.

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If any such event occurs, the City shall give written notice of its knowledge thereof to the Owner, and the Owner agrees to meet and confer with the Director and other appropriate City staff and consultants as to options available to assure timely completi on of the Facilities . S uch options may include, but not be limited to the termination of this Acquisition Agreement by the City . If the City elects to terminate this Acquisition Agreement, the City shall first notify the Owner (and any mortgagee or trust deed beneficiary specified in writing by the Owner to the City to receive such notice) of the grounds for such termination and allow the Owner a reasonable period (minimum of thirty (30) days) to eliminate or mitigate to the satisfaction of the Director the grounds for such termination. Such period may be extended, at the sole discretion of the City, if the Owner, to the satisfaction of the City, is proceeding with diligence to eliminate or mitigate such grounds for termination. If at the end of such period (and any extension thereof, as determined solely by the City), the Owner has not eliminated or completely mitigated such grounds, to the satisfaction of the City, the City may then terminate this Acquisition Agreement.

Notwithstanding the foregoing, so long as any event listed in any of clauses (a) through and including (f) above has occurred, notice of which has been given by the City to the Owner, and such event has not been cured or otherwise eliminated by the Owner, the City may in its sole discretion cease making payments for the Purchase Price of Facilities or Discrete Components under Article V hereof.

Section 9.3 Force Majeure.

Whenever performance is required of a party hereunder, that party shall use all due diligence and take all necessary measures in good faith to perform, but if completion of performance is delayed by reasons of floods, earthquakes, inclement weather or other acts of God, war, civil commotion, riots, strikes, acts of terrorism, picketing, or other labor disputes, damage to work in progress by casualty, or by other cause beyond the reasonable control of the party (financial inability excepted), then the specified time for performance shall be extended by the amount of the delay actually so caused.

ARTICLE X

MISCELLANEOUS
Section 10.1 Limited Liability of City.

The Owner agrees that any and all obligations of the City arising out of or related to this Acquisition Agreement are special and limited obligations of the City and, except as set forth in Section

10.4 below, the City’s obligations to make any payments hereunder are restricted entirely to CFD Sources and from no other source. No member of the City. Council, or City staff member, employee or agent shall incur any liability hereunder to the Owner or any other party in their individual capacities by reason of their actions hereunder or execution hereof.

Section 10.2 Excess Costs.

The Owner agrees to pay all costs of the Facilities that it is obligated to construct pursuant to the Conditions of Approval in excess of the CFD Sources.

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Section 10.3 Audit.

The Director and/or the Finance Director or other finance officer of the City shall have the right, during normal business hours and upon the giving of five (5) business days prior written notice to the Owner, to review all books and records of the Owner pertaining to the Actual Cost incurred by the Owner in to any of the Facilities, and any bids taken or received for the construction thereof or materials therefor.

Section 10.4 Attorney’s Fees.

In the event that any action or suit is instituted by either party against the other arising out of this Acquisition Agreement, the party in whose favor final judgment shall be entered shall be entitled to recover from the other party all costs and expenses of suit, including reasonable attorneys’ fees.

Section 10.5 Notices.

Any notice, payment or instrument required or permitted by this Acquisition Agreement to be given or delivered to either party shall be deemed to have been received when personally delivered, or transmitted by telecopy , facsimile transmission , or electronic mail (which shall be immediately confirmed by telephone and shall be followed by overnight delivery an original of the same within twenty-four hours after such transmission), addressed as follows:

City: City of Marina
211 Hillcrest Avenue
Marina, CA 93933
Attention: Tori Hannah, Finance Director
Email: [email protected]
Owner: Marina Station Phases 1 and 2, LLC,
a Delaware limited liability company
5671 Santa Teresa Blvd., Suite 200, San Jose, CA 95123
Attention: Michael Cady
Email: [email protected]
Each party may change its address or addresses for delivery of notice by delivering written notice of such change of address to the other party.

Section 10.6 Severability.

If any part of this Acquisition Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Acquisition Agreement shall be given effect to the fullest extent possible.

Section 10.7 Successors and Assigns.

This Acquisition Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto. This Acquisition Agreement may be assigned in whole or in part by the Developer to an Affiliate, or to any other entity of which the Owner and/or its members or partners will be managing members or general partners (which transfer is expressly authorized hereunder, without further act of the City), without the prior written consent of the City . This Acquisition Attachment 6
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Agreement may be assigned in whole or in part by the Developer to any other party with the consent of the City, which consent shall not be unreasonably withheld or delayed. In connection with any such consent of the City, the City may condition its consent upon the acceptability of the financial condition of the proposed assignee, the assignee’s express assumption of the obligations of the Owner hereunder that were assigned to such party and/or upon any other factor which the City deems relevant in the circumstances. In any event, any such assignment shall be in writing, shall clearly identify the scope of the rights and/or obligations assigned, and shall not be effective until approved by the City. Without the City’s consent, no assignment shall release the Owner from its obligations and liabilities under this Acquisition Agreement.

Section 10.8 Other Agreements.

The obligations of the Owner hereunder shall be those of a party hereto and not as an owner of property in the District. Nothing herein shall be construed as affecting the City’s or the Owner’s rights, or duties to perform their respective obligations, under other agreements, if any, use regulations or subdivision requirements relating to the development of the lands in the D istrict. T his Acquisition Agreement shall not confer any additional rights, or waive any rights given, by either party hereto under any development or other agreement to which they are a party.

Section 10.9 Waiver.

Failure by a party to insist upon the strict performance of any of the provisions of this Acquisition Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party’s right to insist and demand strict compliance by the other party with the terms of this Acquisition Agreement thereafter.

Section 10.10 Merger.

No other agreement, statement or promise made by any party or any employee, officer or agent of any party with respect to any matters covered hereby that is not in writing and signed by all the parties to this Acquisition Agreement shall be binding.

Section 10.11 Parties in Interest.

Nothing in this Acquisition Agreement, expressed or implied, is intended to or shall be construed to confer upon or to give to any person or entity other than the City and the Owner any rights, remedies or claims under or by reason of this Acquisition Agre ement or any covenants, conditions or stipulations hereof; and all covenants, conditions, promises, and agreements in this Acquisition Agreement contained by or on behalf of the City or the Owner shall be for the sole and exclusive benefit of the City and the Owner.

Section 10.12 Amendment.

This Acquisition Agreement may be amended, from time to time, by written Supplement hereto and executed by both the City and the Owner.

Section 10.13 California Law.

This Acquisition Agreement shall be governed by the laws of the State of California.

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Section 10.14 Counterparts.

This Acquisition Agreement may be executed in counterparts, each of which shall be deemed an original.

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IN WITNESS WHEREOF, the parties have executed this Acquisition Agreement as of the day and year first-above written.

CITY OF MARINA , for itself and on behalf of
City of Marina Community Facilities District
No. 2026-1 (Marina Station)
By:

Name: Layne Long
Its: City Manager

MARINA STATION PHASES 1 AND 2, LLC,
a Delaware limited liability company

By: ____________________________
Name: __________________________
Title: __________________________

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ACQUISITION AGREEMENT

EXHIBIT A

DESCRIPTION OF AUTHORIZED FACILITIES ELIGIBLE FOR

ACQUISITION FROM THE OWNER
A. TYPES OF FACILITIES
The types of Facilities that are proposed to be financed by City of Marina Community Facilities District No. 2026-1 (Marina Station) (the “Community Facilities District”) with the proceeds of special taxes and bonds issued by the Community Facilities Distr ict consist of facilities authorized to be financed by the Mello-Roos Community Facilities Act of 1982 (as incorporated and adopted into the City of Marina Municipal Code, with certain amendments, by Chapter 3.35 of the City of Marina Municipal Code) (the “Act”) (including, but not limited to, backbone infrastructure needed for new development, such as roadway, bridge, sewer, water, reclaimed water, storm drain, street and parkway landscaping, curb and gutter, medians, median landscaping, traffic signals, e ntry signage, parks, and trails, and appurtenances and appurtenant work, and development impact fees that are used by the City to construct infrastructure) that are necessary or desirable for development of the property within the boundaries of the Community Facilities District.

Incidental expenses of relating to the Facilities may include professional design fees (which include final engineering, field engineering and field services, soils engineering, field observation and reports, dry utility design and coordination, landscape design and field services), staking, environmental reports, plan check, and inspection.

B. SUBSTITUTION FACILITIES
The description of Facilities is general in nature. The final nature and location of the Facilities will be determined upon preparation of final plans and specifications.

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ACQUISITION AGREEMENT

EXHIBIT B

ESTIMATED COSTS OF FACILITIES
Preliminary List of Authorized Facilities

Facility/Discrete Component Estimated Cost*

Street Work
Street & Lane Fine Grading $412,160

3.0” HMA (Type A) 1,675,950

6.0” Aggregrate Base (Class B) 782,250
6” Vertical Curb & Gutter (City Std ST-1 with 6” AB) 957,000 6” Rolled Curb & Gutter (includes 4” AB) 6,750
6” Rolled Median Spill Curb (includes 4” AB) 27,500
4” Rolled Curb & Gutters (includes 4” AB) 192,500
4” Rolled Spill Curb (includes 4” AB) 192,500
60’ Reinforced Curb & Gutter (along BRP) 276,000
4’ Concrete Cross-Gutter (Land Intersections) 3,290
Lane Driveway Approaches 117,000
10’ lane Concrete Conform 117,000
Curb Ramps 142,500
Concrete Sidewalk (City Std ST-2) 1,293,750
On-Site FORTAG Trail (12’ wide AC) 69,030
On-Site Recreational Trail (10’ wide AC) 325,000
Street Lights (125’ Spacing) 804,000
Street Centerline Monuments 65,250
Striping (Thermoplastic) 22,650
Pavement Markings (Thermoplastic) 39,000
Traffic/Street Number Signs 81,750
Conform to Existing Street 15,000

TOTAL STREET WORK $7,617,830

Storm Drain
Catch Basins/Drop Inlets $20,400
Lane Thru-Curb Drains 52,000
Junction Manhole (24” Nyloplast) 60,000
48” Storm Drain Manhole 110,000
Primary Risers (24” Nyloplast) 272,000
Secondary Risers (12” Nyloplast) 67,500
Secondary Risers (24” Nyloplast) 28,000
12” HDPE Storm Drain Pipe 348,700
Streetscape Bioretention Pond 207,000
Streetscape Bioretention Pond (with UG Chamber) 2,011,954 Regional Chamber System 668,640

TOTAL STORM DRAIN $3,846,194

* The costs shown above are estimates only; the purchase price for the facilities shall be the Actual Cost of such facilities.

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ACQUISITION AGREEMENT

EXHIBIT C

FORM OF PAYMENT REQUEST
PAYMENT REQUEST NO. ____
The undersigned (the “Owner”), hereby requests payment to the Payees listed on Attachment 2 in the total amount of $__________ for the Facilities (as defined in the Acquisition Agreement, dated as of ________ 1, 2026 between the City of Marina (the “City”), with respect to the City of Marina Community Facilities District No. 2026-1 (Marina Station) and the Owner), or Discrete Components thereof (as described in Exhibit B to that Acquisition Agreement), all as more fully described in Attachment 1 hereto. In connection with this Payment Request, the undersigned hereby represents and warrants to the City as follows:

1. He (she) is a duly authorized officer of the Owner, qualified to execute this Payment Request for payment on behalf of the Owner and is knowledgeable as to the matters set forth herein.

2. To the extent that this payment request is with respect to a completed Facility, the Owner has submitted or submits herewith to the City as -built drawings or similar plans and specifications for the items to be paid for as listed in Attachment 1 hereto wi th respect to any such completed Facility, and such drawings or plans and specifications, as applicable, are true, correct and complete. To the extent that this payment request is for a Discrete Component, the Owner has in his construction office a mark ed set of drawings or similar plans and specifications for the Discrete Components to be acquired as listed in Attachment 1 hereto, which drawings or plans and specifications, as, applicable, are current and show all changes or modifications which have been made to date.

3. All costs of the Facilities or Discrete Components thereof for which payment is requested hereby are Actual Costs (as defined in the Acquisition Agreement referenced above) and have not been inflated or misrepresented in any respect . T he items for which payment is requested have not been the subject of any prior payment request submitted to the City and such costs have not been and are not expected to be reimbursed by any other person or entity.

4. Supporting documentation (such as third party invoices) is attached with respect to each cost for which payment is requested.

5. There has been full compliance with applicable laws relating to prevailing wages for the work to construct the Facilities or Discrete Components thereof for which payment is requested.

6. The Facilities or Discrete Components thereof for which payment is requested were constructed in accordance with all applicable City or other governmental standards, and in accordance with the as-built drawings or plans and specifications, as applicable, referenced in paragraph 2 above.

7. The Owner is in compliance with the terms and provisions of the Acquisition Agreement.

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8. The Purchase Price for each Facility or Discrete Component (a detailed calculation of which is shown in Attachment 2 hereto for each such Facility or Discrete Component), has been calculated in conformance with the terms of Section 5.6 of the Acquisition Agreement.

9. Neither the Owner nor any Affiliate (as defined in the Acquisition Agreement) is in default in the payment of ad valorem real property taxes or assessments or special assessments levied in the District (as defined in the Acquisition Agreement), except as follows:
_________________________________________.

I hereby declare under penalty of perjury that the above representations and warranties are true and correct.

Dated: Marina Station Phases 1 and 2, LLC,
a Delaware limited liability company

By:

Name:

Title:

Dated: CITY:

Payment Request Approved for Submission to
Finance Director
By:

Public Works Director

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ACQUISITION AGREEMENT
ATTACHMENT 1 TO

EXHIBIT C
[List here all Facilities or Discrete Components thereafter which payment is requested, and attach support documentation.]

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ACQUISITION AGREEMENT
ATTACHMENT 2 TO

EXHIBIT C

CALCULATION OF PURCHASE PRICE
[Use a separate sheet for each Facility or Discrete Component for which payment is being requested]

1. Description (by reference to Exhibit B to the Acquisition Agreement) of the Facility or Discrete Component $

2. Actual Cost (list here total of supporting invoices and/or other documentation supporting determination of Actual Cost): $

3. Subtractions from Purchase Price: $
A. Holdback for Lien releases (see Section 5.6(C) of the Acquisition Agreement) $
B. 10% if prior to the Acceptance Date $

4. Total disbursement requested (Amount listed in 2, less amounts, if any, listed in 3) $
Payment shall be directed to following payee(s):

Attachment 6
82 February 26, 2026 Item No. 13a

Honorable Mayor and Members City Council Meeting
of the Marina City Council of March 3, 2026

CITY COUNCIL TO RECEIVE A PRESENTATION AND FINAL REPORT

PREPARED BY THE CSUMB DEPARTMENT OF APPLIED ENVIRONMENTAL SCIENCE CLASS 660 ON, “LOCKE-PADDON WETLAND: ECOLOGICAL HISTORY, PREDICTIONS, AND MANAGEMENT ALTERNATIVES FOR THE FUTURE ”, AND PROVIDE DIRECTION TO STAFF.

REQUEST:

It is requested that the City Council:

1. Receive a presentation and final report prepared by the CSMB Department of Applied Environmental Science Class 660 on, “Locke-Paddon Wetland: Ecological History, Predictions, and Management Alternatives for the Future.”; and

2. Provide direction to city staff.

BACKGROUND:

One of the City Council’s top priorities is to develop a vision for the future of Locke-Paddon Park and Wetlands. As part of that vision, the City has discussed developing a plan for management and maintenance of the pond and wetlands within the boundary of the Park . The City has held various meetings over the past couple year s with the public to get input on the park as well as the pond and wetlands area. Following a joint meeting with the Monterey Peninsula Regional Park District (MPRPD) Board on April 29, at the July 1, 2025, City Council meeting, the Council directed city staff to continue working with MPRPD staff on various issues associated with Locke -Paddon Park including a comprehensive wetlands pond management, maintenance and restoration plan. These discussions with MPRPD staff are continuing.

In October 2025, Dr. Fred Watson approached the City and the Park District regarding having his 2nd- year graduate students conduct an eight-week class project studying Locke-Paddon Park wetlands. Both the City and MPRPD agreed to have the students conduct their project.

ANALYSIS:

Attached is the Final Report, “Locke-Paddon Wetland: Ecological history, predictions, and management alternatives for the future” prepared by the students

Staff recommends that the City Council accept the Final Report and the recommended management alternative of the report as a preferred starting place for Locke -Paddon Park pond and wetlands management discussions. This management alternative is based on selective and sustained removal of bulrushes and willows in a special configuration that seeks to both: (1) improve habitat quality for tricolored blackbirds and other species by promoting a more balanced mixture of younger bulrushes and cattails, open water, and mature stands, and (2) improve recreational quality by creating specifically demarcated and maintained visual sightlines to the open water across low herbaceous native wetland vegetation kept free of bulrushes, cattails, and willows.

FISCAL IMPACT: None

This request is submitted for City Council consideration and comment.

Layne P. Long
City Manager
City of Marina
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94 February 27, 2026 Agenda Item: 13b
Honorable Mayor and Members City Council Meeting
Of the Marina City Council of March 3, 2026

CITY COUNCIL TO RECEIVE UPDATED INFORMATION ON
FUNDING OPTIONS FOR CITY FACILITIES INCLUDING: POLICE
AND FIRE STATIONS; CITY HALL AND COUNCIL CHAMBERS, AND
COMMUNITY CENTER.

RECOMMENDATION: It is recommended that the City Council:

1. Receive updated information on facility funding options; and

2. Provide direction to the City Manager on strategies for the construction and funding options for city facilities including police and fire stations; city hall and council chambers; and community center.

BACKGROUND
On September 23, 2025, the City Council held a special Study Session to discuss a pathway forward on meeting the needs for new City facilities, including a police station, fire station, emergency operations center, community center facilities, and new city hall and council chamber and potential funding strategies for constructing these new facilities. The original information, along with an update was presented to the City Council on December 16, 2025.

Following the September 2025 discussion, Council directed staff to establish a City Facility Citizens Advisory Committee (CFCAC) to work with Tripepi Smith, staff, and other consultants as appropriate; initiate community outreach efforts, including tours, public meetings, and engagement opportunities to involve residents early in the process; conduct further research into funding mechanisms such as bonds and utility users tax options, potential exemptions, and case studies from other cities; and provide Council with preliminary analysis of voter demographics, past election results, and a summary of the City’s available facility sites and also provide staff review and comments to a 10 -page document provided by citizens regarding questions about the Measure U bond. The resulting City Facilities Citizens Advisory Committee Report and Recommendations was presented to the City Council on January 21, 2026.

At this same meeting, additional information was requested, including evaluating the utility user tax ( UUT) supporting information, identifying utilities that could be taxed, and reviewing potential tax exemptions.

ANALYSIS
Staff worked with Keyser Marston to update the utility user tax estimates by extracting P G & E data that was specific to Marina, requesting average commercia l and residential revenues from the Marina Coa st Water District; a nd using the C ity’s franchise fee information to estimate potential cable TV revenues. This updated information, which included the following exhibits, were provided in the February 18, 2026, City Council Agenda Packet. EXHIBITA • Estimated Net Facility Costs
• Utility User Tax Applicability and Exemptions for Nearby Cities • Residential UUT Estimate Based on Estimated Household Costs • Estimated Potential UUT Revenue Needed to Support Different Bond Amounts 1 While this agenda item was continued to March 3, 2026, the Council directed staff to prepare contrasting net facility estimates for the potential Vince Dimaggio Park site and the Monterey Salinas Transit (MST) site on Reservation Road. At the time of this agenda report, the information from the RNT architectural firm is still pending. It is anticipated that both sites will have additional costs beyond the amounts reflected in the prior agenda packet.

Additional costs will include the land purchase associated with the MST site . At this point there has been no appraisal of the site, our best estimates would be $5 - $6 million dollars.

With the Vince DiMaggio Park site , there will be additional site work needed beyond the $4 million base site estimate. The $4 million base site estimate for either site includes grading, utilities, parking lot, landscape, hardscape, walkways, irrigation, drainage etc. At the Vince DiMaggio site with the steep hill and changing topography, there will be addition grading, cut and fill ; retaining walls, and ADA parking and walkways. Estimates indicate that this could result in an additional $3 - $4 million for this work.

Updated information will be provided at the City Council Meeting.

Additional Key City Council Points for Discussion
• Citizens Advisory Committee Report and Recommendations • City facilities to construct
• Site locations for city facilities
• Mechanism to raise funds including UUT or other tax measures • How much to fund
• Ballot measure timeline

FISCAL IMPACT
There is no fiscal impact currently. The total revised cost to build the proposed police station, fire station, city hall, and council chamber is pending updated information from RNT Architects.

ENVIRONMENTAL REVIEW
The proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to the following: CEQA Guidelines Section 15301 because it is not a “project” as it does not involve any new construction, modification, or physical alteration of any property

CONCLUSION
This request is submitted for City Council consideration.

Respectfully submitted,
_____________________________
Layne Long
City Manager
City of Marina
2 February 12, 2026 Agenda Item: 13d
Honorable Mayor and Members City Council Meeting
Of the Marina City Council of February 18, 2026

CITY COUNCIL TO RECEIVE UPDATED INFORMATION ON
FUNDING OPTIONS FOR CITY FACILITIES INCLUDING: POLICE
AND FIRE STATIONS; CITY HALL AND COUNCIL CHAMBERS, AND
COMMUNITY CENTER.

RECOMMENDATION: It is recommended that the City Council:

1. Receive updated information on facility funding options; and

2. Provide direction to the City Manager on strategies for the construction and funding options for city facilities including police and fire stations; city hall and council chambers; and community center.

BACKGROUND
On September 23, 2025, the City Council held a special Study Session to discuss a pathway forward on meeting the needs for new City facilities, including a police station, fire station, emergency operations center, community center facilities, and new city hall and council chamber and potential funding strategies for constructing these new facilities. The original information, along with an update was presented to the City Council on December 16, 2025.

Following the September 2025 discussion, Council directed staff to establish a City Facility Citizens Advisory Committee (CFCAC) to work with Tripepi Smith, staff, and other consultants as appropriate; initiate community outreach efforts, including tours, public meetings, and engagement opportunities to involve residents early in the process; conduct further research into funding mechanisms such as bonds and utility users tax options, potential exemptions, and case studies from other cities; and provide Council with preliminary analysis of voter demographics, past election results, and a summary of the City’s available facility sites and also provide staff review and comments to a 10 -page document provided by citizens regarding questions about the Measure U bond. The resulting City Facilities Citizens Advisory Committee Report and Recommendations was presented to the City Council on January 21, 2026.

At this same meeting, additional information was requested , including evaluating the utility user tax ( UUT) supporting information, identifying utilities that could be taxed, and reviewing potential tax exemptions.

ANALYSIS
Staff worked with Keyser Marston to update the utility user tax estimates by extracting PG & E data that was specific to Marina, requesting average commercial and residential revenues from the Marina Coast Water District; and using the C ity’s franchise fee information to estimate potential cable revenues. The updated information is included in the following exhibits:
• Estimated Net Facility Costs (EXHIBITS A, B)
Staff conferred with our architectural consultants, RNT to update the construction costs of the facilities. The estimated facility costs in current dollars are included in EXHIBIT A. RNT estimates that construction costs will increase by 15% if 3 EXHIBIT A
construction were to begin in 2027. This represents an increase in costs for the police station, fire station, and city hall/council chambers by an estimated additional $8.2 million which will bring the total facility costs to $63. 3 million (EXHIBIT B). Less reductions of impact and other previous funding brings the total cost to an estimated $48.7 million. These amounts also do not include an estimated $6.0 million in potential site acquisition costs.

Other potential funding could include $6.5 million from Preston Park funds and a potential additional $2.6 million in unallocated General Fund balance. However, staff recommends discussing the potential usage of these funds at our Mid -cycle review of our FY year 2025 -26 and 2026 -27 two-year budget, which will likely be brought to Council in May 2026. It is anticipated that an additional $1.5 million may be needed to support groundwater litigation costs, as well as unplanned operating and capital expenditures.

• Utility User Tax Applicability and Exemptions for Nearby Cities (EXHIBIT C) This table provides an overview of the types of utilities that are taxed by other entities and the exemptions that are offered by each City.

• Residential UUT Estimate Based on Estimated Household Costs (EXHIBIT D) This worksheet i ncludes an estimate of the average household utility costs for Non-PG & E C ARE customers, PG & E C ARE Customers, and all households. The utilities include electricity, gas, water, phone/mobile, and cable. The average Non-PG & E CARE household is assumed to have $477 in monthly utility costs, while a PG & E CARE customer is assumed to have $385 in monthly utility costs.

When these are consolidated, the overall average household utility costs are estimated to be $451. A table outlining the estimated monthly and annual UUT costs per household; and the associated revenues at different assessment levels is included on the second half of the worksheet.

• Estimated Potential UUT Revenue Needed to Support Different Bond Capacities (EXHIBIT E)
This worksheet provides information on the amount of utility user tax that would be needed to support different bond levels. This includes estimates for applying the tax to all households at that same rate; and an estimate for exempt ing PG & E C ARE customers. For example, if the City needed a bond issuance for $44 million, a 5% UUT could be levied on all households. If the City chose to provide an exemption to PG & E C ARE customers, a 6.0% UUT would need to be levied to support the same debt service payment.

Additional Key City Council Points for Discussion

• Citizens Advisory Committee Report and Recommendations • City facilities to construct
• Site locations for city facilities
• Mechanism to raise funds including UUT or other tax measures • How much to fund
• Ballot measure timeline

4 EXHIBIT A

FISCAL IMPACT
There is no fiscal impact currently. The total current cost to build the proposed police station, fire station, city hall, and council chamber is estimated at $55 million ; however, when RNT’s estimate for inflation is applied, these costs could rise to $63.2 million in 2027. When the allocated funding is applied to the inflationary costs, the estimated amount of net facility costs is $48.7 million.

ENVIRONMENTAL REVIEW
The proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to the following: CEQA Guidelines Section 15301 because it is not a “project” as it does not involve any new construction, modification, or physical alteration of any property

CONCLUSION
This request is submitted for City Council consideration.

Respectfully submitted,

_____________________________
Layne Long
City Manager
City of Marina

5 EXHIBIT A
City Facility Project Costs Partially Funded
Remaining
Needed Funding Notes
City Hall/Council Chamber 21,500,000 12,419,000 9,081,000 Estimated Facility Reserve Funds and Public Facility Impact fees
Police Department 17,500,000 - 17,500,000
Fire Station 16,000,000 2,148,341 13,851,659 Estimated Public Safety Impact Fees Critical Facility Needs 55,000,000 14,567,341 40,432,659 Recreational Campus Hillcrest 7,500,000 1,000,000 6,500,000 Senior Center grant funding Total Facility Needs 62,500,000 15,567,341 46,932,659 (1) Reflects estimated designated or restricted amounts through Fiscal Year 2026-27. This excludes the $6.5 million in unallocated funds from the Preston Park Fund.

The amounts also exclude potential land acquisition costs of $ 6 million.

Estimated Net Facility Costs (1)
Exhibit A
6 EXHIBIT A
City Facility Project Costs Partially Funded
Remaining
Needed Funding Notes
City Hall/Council Chamber 24,725,000 12,419,000 12,306,000 Estimated Facility Reserve Funds and Public Facility Impact fees
Police Department 20,125,000 - 20,125,000
Fire Station 18,400,000 2,148,341 16,251,659 Estimated Public Safety Impact Fees Critical Facility Needs 63,250,000 14,567,341 48,682,659 Recreational Campus Hillcrest 8,625,000 1,000,000 7,625,000 Senior Center grant funding Total Facility Needs 71,875,000 15,567,341 56,307,659 (1) Reflects estimated designated or restricted amounts through Fiscal Year 2026-27. This excludes the $6.5 million in unallocated funds from the Preston Park Fund.

The amounts exclude potential land acquisition costs of $ 6 million. (2) Inflation estimated at 15%, if construction were to begin in 2027.

Estimated Net Facility Costs, Adjusted for RNT Estimated Inflation (1)(2) Exhibit B
7 EXHIBIT A
Utility User Tax Applicability and Exemptions for Nearby Cities City of Marina, CA
City UUT Rate Exemptions Gas Electric
Phone /
Mobile Water Sewer Cable Streaming
Waste
Services
Monterey 2% Residential
5% Non-Residential
Any person using electrical and gas services
who qualifies for and participates in the local
electrical and gas corporation “Low Income
Rate Assistance” program (LIRA).

XX X X
Pacific
Grove
5% Enrolled in Social Security Administration's
Supplemental Security Income Program for
the Aged, Blind and Disabled (Title XVI,
Social Security Act, as amended) and have
household income less than $12,000 per
year.

XX X X X
Salinas 6%: electric, gas,
water
5% phone, cable
Head of a household is sixty-five years old or
older.

X X X X X may fall
under "video
services"
Santa Cruz 8.50% Seniors and PG&E CARE program
enrollees: exempts first $100 per month of
electricity and gas charges.

X X X X X X may fall
under "video"
X
Watsonville 5.5%:
telecommunications /
video; 6%: water, gas,
electric
Gas and electric exemptions:
a) PG&E CARE Program enrollees
b) 65 years old or older and head of the
household;
c) Eligible for Social Security
Administration’s Supplemental Income
Program for the Aged, Blind and Disabled

XX X X X X
Seaside 6% a) 65 years old or older or
b) Eligible for Social Security
Administration’s Supplemental Income
Program for the Aged, Blind and Disabled

XX X X X
A
pplicability of Utility User Tax
Prepared by Keyser Marston Associates, Inc.

Filename: UUT estimate 2-6-26; applicability; 2/7/2026; dd: Page 6 of 9 Exhibit C
8 EXHIBIT A
Residential UUT Estimate Based on Estimated Per Household Utility Costs City of Marina, CA
Number Households (1) 72% 5,915 28% 2,339 100% 8,254
Residential Utility Use
Monthly Utility Cost Avg per HH (2)
Total Avg per HH (2)
Total Avg per HH Total
Electric $166 $982,000 $90 $209,000 $144 $1,191,000
Gas $74 $435,000 $59 $137,000 $69 $572,000
Water $82 $486,000 $82 $192,000 $82 $678,000
Phone / Mobile $110 $651,000 $110 $257,000 $110 $908,000 Cable $45 $266,000 $45 $105,000 $45 $371,000
Total Per Month $477 $2,820,000 $385 $900,000 $451 $3,720,000 Annual Utility Cost $33,800,000 $10,800,000 $44,600,000 Monthly UUT from Residential
1% UUT 1% $4.80 $28,200 $3.90 $9,000 $4.50 $37,200
5% UUT 5% $23.80 $141,000 $19.30 $45,000 $22.50 $186,000 7% UUT 7% $33.40 $197,400 $27.00 $63,000 $31.50 $260,400 Annual UUT from Residential
1% UUT 1% $58 $340,000 $47 $110,000 $55 $450,000
5% UUT 5% $286 $1,690,000 $231 $540,000 $270 $2,230,000 7% UUT 7% $401 $2,370,000 $325 $760,000 $378 $3,120,000 (1) Reflects the number of occupied housing units per DOF as of January 1, 2025. See note 3 regarding estimated PG&E CARE participation. (2) See Table 3 for information on estimated monthly cost per household. (3) The percentage of households participating in PG&E CARE for Monterey County is estimated to be 28% based on data available from the Low Income Oversight Board. Data specific to Marina was not available. Marina was assumed to have a similar CARE Program rate of participation to the County as a whole.

Non-PG&E Care PG&E Care (3) All Households
Prepared by Keyser Marston Associates, Inc.

Filename: UUT estimate 2-6-26; Res UUT; 2/7/2026; dd: Page 2 of 9 Exhibit D
9 EXHIBIT A
Estimate of Potential Utility User Tax (UUT) Revenue
City of Marina, CA
Note: Revised Approach to Estimating UUT Based on Estimated Utility Cost (vs actual UUT for other cities with prior method) Households
Not Eligible for

PG&E CARE
Households
Eligible for

PG&E CARE
Non-
Residential
Uses
Total UUT
Revenue
Estimate
Assuming No
UUT
Exemptions

1.0% $340,000 $110,000 $140,000 $590,000 $9,000,000 $7,000,000 $7,000,000

2.0% $680,000 $220,000 $280,000 $1,180,000 $18,000,000 $15,000,000 $14,000,000

3.0% $1,020,000 $330,000 $420,000 $1,770,000 $27,000,000 $22,000,000 $21,000,000

4.0% $1,360,000 $440,000 $560,000 $2,360,000 $36,000,000 $29,000,000 $29,000,000

5.0% $1,690,000 $540,000 $690,000 $2,920,000 $44,000,000 $36,000,000 $36,000,000

6.0% $2,040,000 $660,000 $840,000 $3,540,000 $54,000,000 $44,000,000 $43,000,000

7.0% $2,370,000 $760,000 $970,000 $4,100,000 $62,000,000 $51,000,000 $50,000,000

7.5% $2,550,000 $825,000 $1,050,000 $4,425,000 $67,000,000 $55,000,000 $54,000,000 Notes
(2) Reflects preliminary estimates by the City's Municipal Advisor, Fieldman, Rolapp & Associates. KMA is not advising or recommending any action be taken by the City with respect to any prospective new or existing municipal financial products or issuance of municipal securities (including with respect to the structure, timing, terms, and other similar matters concerning such financial products or issues). KMA is not acting as a municipal advisor and does not assume any fiduciary duty, including, without limitation, a fiduciary duty pursuant to Section 15B of the Exchange Act.

Annual Revenue Estimate,
if No Exemptions (1)
Residential
Preliminary Estimate of
Bond Capacity (2)
If Households
Eligible for
PG&E Care
Exempted
Bond Capacity Estimate
Using Prior Method (based
on actual UUT for other cities
- effectively assumes similar
exemptions to the other
cities), from Table 8.

Potential
UUT Rate
(1) See Tables 2 to 4 for supporting data. Estimates for 2%, 3%, 4%, 6%, and 7.5% UUT rates are based on multiples of the estimate at a 1% UUT rate. Estimates assume UUT applies to all major utilities including water, gas, electric, telecommunications, cable. Internet cannot be taxed.

Prepared by Keyser Marston Associates, Inc.

Filename: UUT estimate 2-6-26; Rev Sum; 2/7/2026; dd: Page 1 of 9 Exhibit E
10 EXHIBIT A
March 3, 2026 Item No. 13c
Honorable Mayor and Members City Council Meeting
of the Marina City Council of March 3, 2026

CITY COUNCIL REVIEW AND ACCEPTANCE OF THE PREFERRED

CONCEPTUAL DESIGN PLAN FOR THE FORT ORD DUNES STATE PARK IMPROVEMENT PROJECT.

RECOMMENDATION: City Council consider:

1. Accept the Preferred Conceptual Design Plan for the Fort Ord Dunes State Park Improvement Project and direct staff to proceed to 30% design.

BACKGROUND:

On June 6, 2024 , the City of Marina received a n $800,000 grant from the California Coastal Conservancy to prepare plans, environmental review documents, and permit applications for improvements at Fort Ord Dunes State Park (herein referred to as “the Park”) near the 8th Street parking lot and beach access (see EXHIBIT A, Project Site).

The project site is located in unincorporated Monterey County and is owned by California State Parks.

The City initiated the project to improve ADA access to the beach for people with mobility disabilities.

City staff have been working closely with their consultant team , State Parks and Coastal Conservancy staff to prepare a Preferred Conceptual Plan that is supported by all stakeholders.

The Preferred Conceptual Plan (see EXHIBIT B) reflects extensive coordination with State Parks, the Coastal Conservancy, affiliated Tribes, and community members. Engagement included a multi-agency site visit and a public Community Field Trip, during which participants provided input on access, habitat protection, trail improvements, and overlook design. Feedback received through this process directly informed the selection and refinement of the Preferred Conceptual Plan, now presented to City Council.

DISCUSSION:

The City recognizes Fort Ord Dunes State Park as a critical coastal access location in southern Marina.

The project site is located less than 0.5 -miles from the future all-inclusive park planned for 2 nd Avenue between 8 th and 5 th, the Dunes residential development, and the VA Clinic; approximately 0.5 -miles from the planned SURF! Busway 5 th Street Station; and approximately one mile from CSUMB. The site serves as one of the primary coastal access points for southern Marina residents and regional visitors.

The original goal of the project was to improve ADA access to the beach for individuals with limited mobility. During the process of preparing draft alternative conceptual plans, it was determined by the landowner (State Parks) and grant funder (Coastal Conservancy) that providing ADA access to the beach would result in too large of impacts to natural resources, including special -status species and the sensitive dune habitat. Due to the steep topography leading to the beach, an ADA accessible trail would have required a highly-engineered ramped boardwalk with grading, multiple switch-backs and potential retaining walls. This design was not supported by State Parks or the Coastal Conservancy. The Preferred Conceptual Plan, which is being presented to Council, includes rehabilitation of the existing beach trail using cable steps. While it does not provide ADA access to the beach, it does improve beach access compared to current conditions, and is supported by the landowner (State Parks) and the grant funder (Coastal Conservancy).

The project also includes additional components that improve the visitor experience at the Park. These improvements were developed based on a series of site visits and discussions with stakeholders.

Currently, there is no existing sidewalk or pedestrian pathway along the entrance road between the 8 th Street overpass and the parking lot. During the March 15, 2025 community fieldtrip, City staff, State Parks, and the consultant team witnessed numerous pedestrians walking within the vehicular travel lane to access the Park, creating safety concerns. As a result of this observation, the project team recommended including a sidewalk along the entrance road, between the 8 th Street Overpass and the parking lot. Inclusion of a sidewalk will complete safe pedestrian connections between the FODSP parking lot and the planned all -inclusive park as well as the SURF! Busway 5 th Street Station.

Additionally, t he Park’s existing overlook is subject to erosion and is not ADA accessible. The Preferred Conceptual Plan includes a new ADA overlook which provides individuals who cannot access the beach with benches and ocean views.

The Preferred Conceptual Plan is broken into four main project components, as described below:

1. Entry Road Pedestrian Path. Features a sidewalk along the southern edge of the entrance road.

2. Parking Lot. Enhanced entrance sign; dumpster screening; restroom facility with twin -vault toilets.

3. Trailhead & Overlook. Shift trailhead towards beach access location; bike parking ; benches; ADA accessible overlook with seating.

4. Beach Access Trail. Widen the trailhead; implement cable steps ; implement erosion control improvements.

LONG-TERM MAINTENANCE:

On April 16, 2024, City Council adopted a resolution that accepted the Coastal Conservancy grant funding and agreed to all terms and conditions of the grant agreement. The grant requires the grantee to maintain any facilities constructed as part of the grant for up to 20 years. It is possible that State Parks will maintain some of the improvements ; however, this will be worked out during the development of the Operating Agreement.

Components of the project that will require maintenance:
• Sidewalk.
• Twin-Vault Toilet. State Parks has verbally agreed to maintain the twin -vault toilet, since it is replacing the existing portable toilets that they currently maintain. • Dumpster Enclosure.
• Picnic Tables.
• Interpretive signs and wayfinding signs.
• New overlook.
• Dune restoration.
• Beach access trail.

In the coming months, City staff will work with State Parks to determine a maintenance program that identifies City maintenance responsibilities and State Parks maintenance responsibilities. This maintenance program will be memorialized in an Operating Agreement entered into by the City of Marina and State Parks. The Operating Agreement will be brought before the City Council for review and approval prior to execution. Once the maintenance responsibilities are determined, the estimated annual cost of maintenance for the city will be determined.

NEXT STEPS: The grant requires that the City Council accept the Preferred Concept ual Plan prior to the project team moving to preparation of 30% design plans. Once Council accepts the Preferred Conceptual Plan, the City will work out the maintenance responsibilities with State Parks, and will come back to the City Council with the draft Operating Agreement and annual maintenance cost estimates.

FISCAL IMPACT:

There is no cost to the City associated with the planning portion of the project that is currently underway. The construction of the project is anticipated to be fully grant funded as well.

The City will assume long -term maintenance responsibilities as required by the grant. These obligations will be formalized in an Operating Agreement between the City of Marina and State Parks. Annual maintenance will likely include weekly Public Works staff time and annual costs for materials and tools. The Fiscal Impact will be identified once the Operating Agreement between the City of Marina and State Parks is drafted.

ENVIRONMENTAL REVIEW:

Acceptance of the Preferred Conceptual Plan is not a project approval under CEQA and does not constitute a commitment to a definite course of action. Environmental review will be completed prior to consideration of final project approvals.

CONCLUSION:

This request is submitted to the City Council to accept the Preferred Conceptual Plan and direct staff to move forward with 30% design plans.

Respectfully submitted,

Layne Long
City Manager
City of Marina

Site outline and trail location is shown for illustrative purposes only and may not represent the exact location of the proposed site elements.

Coastal access improvements at Fort Ord Dunes State Park with the goal of creating more an inclusive coastal experience for the residents and visitors of the City of Marina.

Site Overview

FORT ORD DUNES STATE PARK

EXHIBIT A
Site Overview

FORT ORD DUNES STATE PARK

EXHIBIT B

FORT ORD DUNES STATE PARK
Entry Road Pedestrian Path
• 6’ wide sidewalk and curb
Pa
rking Lot
• Entry sign
• Vault toilet
Tr
ailhead & Overlook
• Enhanced trailhead
• Accessible overlook
Bea
ch Access Trail
• Trailhead
• Cable steps
• Erosion improvements
Entry Road
Pedestrian Path
Parking Lot
Trailhead
Beach Access
Overlook
Project Areas – Preferred Concepts

EXHIBIT B
Entry Road Sidewalk

FORT ORD DUNES SP

EXHIBIT B
Parking Lot

FORT ORD DUNES STATE PARK
Proposed Entry Sign and Native Planting

EXHIBIT B
Trailhead (Point Lobos)
Trail accessibility information (Point Lobos)
Enhanced Trailhead & Accessible Overlook

FORT ORD DUNES STATE PARK
Accessible Overlook (Carmel-by-the-Sea)

EXHIBIT B
Accessible overlook in relationship to the coastal bluffs

FORT ORD DUNES STATE PARK

EXHIBIT B
Existing conditions
Proposed Cable Steps
& Restoration
Beach Access Trail

FORT ORD DUNES STATE PARK

EXHIBIT B

March 3, 2026 Item No. 13d

Honorable Mayor and Members City Council Meeting of the Marina City Council of March 3, 2026

CITY COUNCIL TO RECEIVE A PRESENTATION ON THE

COMPREHENSIVE LOCAL COASTAL PROGRAM (LCP) UPDATE AND

PROVIDE DIRECTION TO STAFF ON THE DRAFT LAND USE PLAN
(LUP). THE PREPARATION OF LCP AMENDMENTS IS EXEMPT FROM ENVIRONMENTAL REVIEW PER PRC SECTION 21080.9 AND
SECTION 15265(a)(1) OF THE CEQA GUIDELINES.

REQUEST:

Staff Requests that the City Council:

1. Receive a presentation on the comprehensive Local Coastal Program (LCP) update; and

2. Provide directions to staff on the draft Land Use Plan (LUP) prepared after the November 13, 2025, Planning Commission hearing.

BACKGROUND:

The California Coastal Act of 1976 requires that local governments lying within the Coastal Zone prepare a Local Coastal Program (LCP). The LCP is a comprehensive land use planning document that establishes allowable land uses for properties located in the City’s portions of the Coastal Zone and includes resource protection policies for coastal resources such as sensitive habitats, public access, and coastal views. The LCP contains a Land Use Plan (LUP) and an Implementation Plan (IP). The LUP functions similarly to a City’s General Plan, outlying the broad framework and development policies for the area; while the IP contains the regulations that would implement the LUP, such as zoning designations, developments standards, and permitting procedures.

Marina’s portion of the Coastal Zone is approximately 1.5 square miles and represents a relatively small area of the City. Existing uses primarily consist of open space and/or public facilities such as Locke Paddon Park, Marina State Beach, and Marina Dunes Preserve. The vacant developable land in the Coastal Zone is primarily concentrated in the Marina Landing Shopping Center.

The City of Marina’s current LCP (including an LUP1 and IP2) was adopted by the City Council and certified by the California Coastal Commission (CCC) i n 1982, and has been periodically amended through 2013. Since the LCP’s original certification in 1982 the development needs of the City, State laws, and the regulatory setting within the Coastal Zone have changed significantly.

In October of 2023, the City was awarded a CCC grant to undertake a comprehensive update to our LCP. Given the need to update the 1982 LCP, staff and the consultants chose to not only update specific policies to make them consistent with current Coastal Commission guidance, practice, and science; but also to replace the old document with an entirely new layout and format that is easier to read and use for both the public and staff. City staff and consultants discussed this with CCC staff who were very supportive of this methodology.

1 Current LUP: https://marinalcpupdate.org/wp-content/uploads/2024/03/Marina_LUP_Jan2024.pdf 2 Current IP: https://marinalcpupdate.org/wp-content/uploads/2024/03/Marina_IP_Jan2024.pdf 1 The City was awarded a separate grant in 2017 to prepare a Coastal Hazards/Sea Level Rise (Hazards) amendment to our existing LCP. This work was undertaken apart from the comprehensive update. The City Council approved this amendment with modifications from the CCC on December 2, 2025 , and it was transmitted to the CCC for final certification, which occurred on February 4, 2026. The recently adopted Hazards portion of the LCP would be a chapter folded into the LCP once the comprehensive update is complete.

The Planning Commission considered the comprehensive LUP amendment on November 13, 2025 and recommended approval subject to modifications (EXHIBIT A, PC Resolution 2025-16). Key issues that the Planning Commission discussed were the allowable uses within the Open Space and General Commercial (which encompasses the Marina Landing shopping center) land use designations. The commission recommended that active recreation be removed from the open space designation, and that mixed residential and commercial use be allowed within the General Commercial designation. The Planning Commission also discussed a few minor edits including correcting typos and clarifying where dunes are visible from the City. After the Planning Commission recommendation, staff and the consultant prepared a revised draft. All text updates made since the Public Review Draft which was presented to the Planning Commission are reflected in track changes (EXHIBIT B). Additionally, Figures 5-7 and 10 have been updated. Figure 5 was updated to add a proposed public access point at the CEMEX site, Figures 6 and 7 were updated to remove closed cone cypress from the potential sensitive habitat areas, and Figure 10 was revised to update the land use designation of the Sanctuary Beach Resort so that the Visitor Serving designation on the site matches the existing approved development.

There are a few key issues that staff are seeking direction in the LUP draft, particularly whether mixed use should be permitted in the General Commercial district, whether active recreation uses should be removed from the Open Space designation entirely, and whether the prohibition on drive-thru uses in the General Commercial land use designation of the draft LUP should be carried forward. After receiving policy direction on the LUP, the next step in the process would be for staff and our consultants to update the draft LUP based on the Council’s direction and commence preparation of an Implementation Plan (IP) with regulations based on the policies of the LUP .

After a revised IP is drafted, a public review draft of it would be released. Then the entire LCP package (including the LUP and IP) would go to the Planning Commission and City Council for consideration. After approval of the comprehensive LCP package, staff would submit it to the CCC for certification. The updated LCP would not go into effect until the CCC certifies it as consistent with the Coastal Act.

DISCUSSION:

As previously mentioned, the LUP functions similarly to a City’s General Plan, outlying the broad framework and development policies for the area. The draft LUP includes the following sections:

1. Introduction and Framework

2. Public Access and Recreation (PAR)

3. Biological Resources and ESHA (BIO)

4. Marine Resources and Water Quality (MWQ)

5. Coastal Hazards (HAZ) – note that is a placeholder for the Hazards LUP chapter, which has already been certified

6. Land Use and Development (LUD)

7. Scenic and Visual Resources (VIS)

8. Tribal, Cultural and Historic Resources (TCH)

9. Environmental Justice (EJ)

2 Given the length and complexity of the draft LUP, discussion will focus on several ke y issues rather than going through each chapter or section individually. These include the Open Space land use designation , Environmentally Sensitive Habitat Areas, the General Commercial land use designation (Marina Landing Shopping Center), Mixed Use, and Outreach and Engagement.

Open Space Land Use Designation
As indicated on the draft Land Use Map (Fig. 10) the vast majority of lands within the Coastal Zone are proposed to have a land use designation of Open Space. This includes the “North Dunes” property and the majority of Locke -Paddon Park (LPP). The draft plan presented to the Planning Commission principally allowed “ passive” recreational uses and conditionally allowed “ active” recreational uses in the Open Space land use designation . Conditionally allowable uses are those that are allowable only through a conditional use permit and subject to a higher level of discretionary review and consideration. Active and passive recreation were specifically defined as follows:
• “Active Recreation: moderate-intensity recreational uses that are typically offered in a City park, including but not limited to park buildings, community centers, bicycle paths, campgrounds and ancillary uses supporting public agencies.” • “Passive Recreation: low intensity recreational uses such as walking trails, hiking trails, boardwalks, picnic areas, interpretive signage, interpretive centers, botanical gardens, community gardens, and nature observation decks.”

These definitions would be applicable throughout the Open Space designation in the City’s Coastal Zone. Community and botanical gardens are also included in the passive recreation definition, and therefore would be allowable regardless of whether active recreation is included as an allowable use. After deliberation the Planning Commission recommended that “Active Recreation” be removed as an allowable use from the Open Space land use designation while expanding the definition of passive recreation to “Low intensity recreational uses such as walking trails, hiking trails, boardwalks, picnic areas, interpretive signage, interpretive centers, botanical gardens, community gardens, and nature observation decks and other uses that will not result in impacts to wildlife and do not create noise impacts .” (additions underlined). The reasoning behind this change was two -fold. The commission was concerned that the broadness of the original active recreation definition could result in proposed uses in that were incompatible with the intent of open space, and that the conditional use permit process would not be an adequate safeguard against such incompatible uses. The commission also sought to create a definition that was more outcome based rather than attempting to create an exhaustive list of allowable uses.

Staff support the approach of trying to make the definitions more outcome-based and require uses to protect habitat and the peaceful enjoyment of the City’s coastal areas and have made the corresponding changes in the draft LUP ( EXHIBIT B). However, removing active recreation entirely may overcorrect for this issue , precluding uses that would typically be considered along the coastline and support public access and recreation, such as campgrounds. Therefore, staff are seeking input from the City Council on whether to c arry forward the Planning Commission’s recommendation regarding removal of active recreation entirely or draft an alternative more limited definition of active recreation that addresses the Planning Commission’s substantive concerns.

Environmentally Sensitive Habitat Area
The Coastal Act defines Environmentally Sensitive Habitat Areas (ESHAs) as “any area in which plant or animal life or their habitats are either rare or especially valuable because of their special 3 nature or role in an ecosystem and which could be easily disturbed or degraded by human activities and developments” . In Marina these include wetland areas and coastal dune habitats.

Figures 6 and 7 on pages 3-4 and 3-6 show potential ESHA areas in the City’s Coastal Zone. While these maps are a helpful illustrative tool, BIO-1 specifies that it is the actual presence of sensitive habitat that constitutes ESHA. In accordance with BIO -1 and BIO -5, individual developments would be required to submit a biological report to identify the presence and extent of any ESHA.

Per Coastal Act section 30107.5 and draft policy BIO -2, only uses which are dependent on the resource (e.g. habitat restoration, low-intensity public access and recreation, etc.) are permissible within ESHA. The strong protection of ESHA and restriction on developing in it are one of the ways that the Coastal Act protects these rare ecosystems.

The draft LUP considered by the Planning Commission identified closed -cone cypress areas as a potential ESHA. However, within the City of Marina, closed -cone cypress is limited to planted Monterey cypress strands. After the Planning Commission hearing, it was requested that this issue be clarified. Staff coordinated with our consultant biologist at EMC, and we believe that while ESHA determinations are made on a project by project basis, it would be inappropriate to broadly characterize this habitat area as ESHA. While widely planted and naturalized along the central coast, Monterey cypress are not native to Marina.

Nevertheless, many of the trees are large and contribute to the scenic value of the City’s coastal areas, and its urban forest. Therefore, staff recommend that the closed -cone cypress be removed from potential ESHA in the LUP, but that Monterey cypress trees be included in the definition of “Major Vegetation” that would require a Coastal Development Permit to remove . This would ensure that these trees are not inappropriately characterized as ESHA, while still requiring proposed tree removals go through a C oastal Development Permit process. This permit process allows an additional layer of consideration be given to the impacts of removing any of these trees.

General Commercial Land Use Designation – Mixed Use in Commercial Designations The approximately 5.5 acre vacant property in the northeast corner of the Marina Landing Shopping Center located at the intersection of Del Monte Blvd and Beach Road is currently planned General Commercial (GC) in the City’s 1982 LCP. The owners of the pro perty, Terry Tallen (Monterey Bay Investments, LLC) and the Indiana University Foundation (IUF) have requested that this land use designation be changed to one that allows high -density multi-family housing and/or mixed uses development. The General Commerc ial land use does not allow housing including that associated with a commercial development. The owners have contended that there is a lack of interest in the location by commercial developers, resulting in the site being vacant for decades. However, t he City commissioned a Real Estate Market Analysis & Site Assessment (HdL Companies, April 2025) which studied this site specifically and found that it should be able to support the type of commercial development allowed in the GC designation.

The question of whether housing should be an allowable use at the Marina Landing Shopping center been discussed by the General Plan Advisory Committee (GPAC), at public workshops relating to both the General Plan update (GP2045) and this LCP update, and City Council at their review of the preferred land use alternatives for the GP2045 in January of 2025. At these public venues, the preference has been to keep this location planned and zoned for commercial use. The City has a certified 6th Cycle housing element, and throughout the City a significant number of all types of housing have been recently constructed, are under development, or are subject to approved entitlements. This includes 1,237 units in the Dunes specific plan, 1,050 units in the Sea Haven Specific Plan, and 1,360 units in the Marina Station specific plan.

4 Staff believe retaining a commercial land use designation and encouraging commercial uses in this area is appropriate as:

1. The community outreach performed to date has indicated a desire that the property be retained for commercial use.

2. The market analysis the City has available indicates that commercial could be a feasible use.

3. The specific plans mentioned above were all planned between 2003 and 2008. The City’s land use needs have started to shift over the last twenty years. With all of the residential development occurring throughout the City, commercial areas will be increasin gly important to ensure local access to services and create a balanced integrated distribution of land uses in the City. The Marina Landing sites are some of the few vacant infill commercial sites in this area.

4. To ensure that the continued maintenance of roads and other community services for all the housing units being developed throughout the City, Marina needs revenue through sales tax and/or Transient Occupancy Tax (TOT) that would be provided by commercial use.

However, the Planning Commission considered the length of time the site has been vacant and the owners/their representatives oral and written comments, and recommended that mixed use be allowed on the site. The property owner has also separately submitted a preliminary application for a fully residential townhome development on the 5.5 acre site. In their application they affirmed their commitment to work with the City on a mixed use designation, but also contend that a fully residential project would be allowable under current state law, specifically Assembly Bill (AB) 2011, as amended by AB 2243. This law ministerially allows certain residential projects in commercial zones provided they meet certain prescribed s tandards. Staff have not provided a determination as to whether their preliminary application meets the substantive requirements of AB 20113.

A designation that allows mixed use while requiring a portion of any development be commercial is a potential approach to balance these different policy considerations. Should the council desire, it could carry forward the Planning Commission’s recommendation, in which case staff would recommend modifying both the General Commercial land use designation and LUD -19 on Pg 6- 14 of the plan to allow mixed use developments.

Should the City Council provide direction to carry forward the Planning Commission’s recommendation to allow mixed use in the LUP in General Commercial designation, there are several detailed parameters on what mixed use would allowable that staff and our consultant would need to research. Th ese include 1) whether the mixed use would be allowable on all General Commercial sites or only ones with specific characteristics (e.g. parcel size, location, etc.); 2) the allowable density of residential development; 3) where the residential and commercial uses could be located within a development; and 4) the appropriate portion of residential to commercial development. Staff will come back with recommendations to address these issues in the IP.

General Commercial Land Use Designation - Other Policy Considerations The draft of the LUP considered at the Planning Commission prohibited drive thru uses in both the Visitor Serving Commercial and Coastal General Commercial land use designations, Chapter

6.0 Land Use and Development (LUD). This prohibition was intended to be consistent with the

3 The AB 2011 law is repealed by its own provisions in 2033 5 policy direction of the Downtown Specific Plan, which prohibits them in the Core, Mixed -use Node, and Multi -family residential districts as part of creating a pedestrian friendly downtown environment.

Staff met with the property owners of Marina Landing on January 8, 2026. They had serious concerns regarding this prohibition, and we advised that they provide a comment articulating those concerns so they could be communicated to City Council when they co nsidered the LUP. Staff also received a letter from Rob Riedel, another property owner in the Marina Landing shopping center requesting this draft language be removed (EXHIBIT C). The letter notes that drive-thrus can be beneficial to families and people w ith mobility challenges. The context of the Marina Landing shopping center is also different than the downtown core. The shopping center bounded on three sides by arterial roadways . currently consists of primarily auto -oriented uses, and this prohibition would render the recently constructed Quick Quack carwash a legal non -conforming use.

Considering the public comments received and the geographic context of the Marina Landing shopping center, staff are recommending that the City Council consider allowing drive -thru uses in the General Commercial land use designation. This approach would be similar to our downtown Transition district, which conditionally allows drive-thrus. To make this change, the final sentence of the general commercial designation on pg. 6 -14 “Drive-thru uses are not allowed ,” would be struck from the draft LUP.

Another area of potential interest is Policy LUD-20, which states that “General Commercial uses are a low priority use in the coastal zone and shall be sited to have no impact on sensitive coastal resources.” Much of the discussion on the Marina Landing sites including through the LCP and GP 2045 update has been focused on how this area could serve as a regional retail or visitor serving gateway. However, ultimately the more restrictive resource protection poli cies of the LCP would govern, and the policy is written extremely broadly. Staff recommend that the council consider modifications to LUD -20 that require development to be consistent with coastal resource protection policies, but not have the blanket “no impacts” statement. Example language is included below:
• LUD-20: General Commercial uses are considered a lower priority use within the coastal zone and shall be sited and designed to be consistent with the resource protection policies of this LCP to have no impact on sensitive coastal resources.

Outreach and Engagement
The City conducted extensive outreach to the community to try to ascertain residents’ desires for the future of the City’s Coastal zone. Our consultants prepared an LCP Update Engagement Plan and follow-up summary. In addition to reaching people through online surveys (145 responses), workshops (58 attendees), and tabling at City events, staff conducted formal Senate Bill (SB) 18 Tribal consultation with the Ohlone Costanoan Esselen Nation (OCEN) which resulted in the acknowledgement that all of the Coastal zone is potentially sensitive in terms of Tribal and/or Archaeological Resources and has been mapped accordingly. These outreach efforts were made in accordance with Public Resources Code (PRC) Section 30503 and California Code of Regulations, Title 14, Section 13515.

ENVIRONMENTAL REVIEW:

The preparation of or amendment to an existing certified LCP is not subject to environmental review per PRC Section 21080.9 and Section 15265(a)(1) of the CEQA Guidelines.

6 CONCLUSION:

Respectfully submitted,

_________________________
Phil Angelo
Senior Planner, Community Development Dept.

City of Marina

REVIEWED/CONCUR:

_________________________
Guido Persicone, AICP
Director, Community Development Dept.

City of Marina

Layne Long
City Manager
City of Marina

Exhibits:

Exhibit A – Planning Commission Resolution 2025-16
Exhibit B – Draft Post Planning Commission LUP dated February 23, 2026 Exhibit C – Public Comments

7 EXHIBIT A
8 EXHIBIT A
9 EXHIBIT A
10 Exhibit B
Post Planning Commission Land Use Plan (LUP) Draft dated February 23, 2026 A copy of this document will be made available upon request or can be viewed on the City’s website:
https://marinalcpupdate.org/wp-content/uploads/2026/02/Land-Use-Plan-Post-Planning- Commission-Draft_022326.pdf
11 To: Anita Shepherd Smith – City Clerk of Marina, California; [email protected] My name is Rob Riedel, and I am writing on behalf of the owners of Pad C at the Marina Landing Shopping Center on Beach Road. Our family has owned this vacant parcel for more than ten years, and we recently learned that the City is contemplating a no–drive-thru policy for new development on this site. We believe such a policy would be ill-advised, would significantly diminish the value of our land, and—more importantly—would be a detriment to the Marina community.

The current and longstanding zoning designation is to allow drive-thru and ties in with the Visitor Service Uses. A drive-thru is in absolute total alignment with the property’s well established zoning designation. The zoning was what my family relied upon when we invested and became a stakeholder in this community.

Drive-thrus are not a relic of outdated, car-centric planning. They are a modern, adaptive response to how people live, work, and move today. Cities that ban them risk undermining economic vitality, ignoring clear consumer behavior trends, and missing opportunities to shape better, more efficient, and more community-friendly designs.

Marina’s drive-thru policy should reflect the lived realities of its residents. Drive-thrus provide essential access for seniors, families, workers, and people with mobility challenges. When designed responsibly, they strengthen local businesses, reduce commercial vacancies, and support the community’s daily needs. A pro-community approach ensures that Marina’s land-use decisions respond to these realities rather than adopting a one-size-fits-all ban.

Marina is a growing, diverse, working-class coastal city where:
• Many residents commute long distances and rely on quick, reliable food access • Seniors and disabled residents benefit from the ability to remain in their vehicles • Families with young children need safe, convenient service options • Fast-food restaurants often serve as informal “third places” for youth, seniors, and working-class families
• Vacant commercial spaces undermine corridor vitality and public safety • Additional tax revenue is needed to support community services For these reasons, drive-thrus should be permitted in existing commercial corridors, especially in areas anchored by major tenants such as Walmart, where additional retail activity is beneficial.

Drive-thrus should be discouraged only in small-parcel, pedestrian-oriented village centers. This targeted approach protects walkability where it matters while preserving access where residents actually need it.

There are also numerous design standards that can address concerns associated with drive-thrus, including:
• High-efficiency layouts that prevent queue spillover
• Lighting and visibility standards
Received February 12, 2026

EXHIBIT C
12 • Shielded speaker systems
• Modern circulation plans that prioritize pedestrian safety From an economic standpoint, a drive-thru is the only viable retail option for this site.

Restaurants with drive-thrus saw only a 4% sales decline from 2019 to 2022, while those without drive-thrus suffered a 50% drop. A dine-in restaurant or small retailer is simply not feasible at this location given current market conditions.

For all these reasons, we respectfully urge the City to support well-designed, community-serving drive-thrus that enhance accessibility, strengthen local businesses, and contribute to safe, vibrant commercial corridors.

Thank you for your consideration.

Sincerely, Rob Riedel
cc:

Terrance Tallen – [email protected]
Daniel Dokhanian – [email protected]
Patrick McAleer – [email protected]
[email protected]
[email protected]
[email protected]
[email protected]

EXHIBIT C
13 From: McAleer, Patrick
To: Anita Shepherd-Sharp
Cc: Terry Tallen; Daniel Dokhanian; Jon Stansbury; Guido Persicone; Philip Angelo Subject: Support for Mixed-Use LCP Amendment – Parcel 1 at Marina Landing (March 3, 2026 - Vote) Date: Friday, February 20, 2026 6:35:04 AM
[EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe.

February 20, 2026
Marina City Council
City of Marina
211
Hillcrest Avenue
Marina, CA 93933
Re: Support for Mixed-Use LCP Amendment – Parcel 1 at Marina Landing Dear Members of the Marina City Council,
I am writing to respectfully request your support at the March 3rd meeting for the adoption of the proposed Local Coastal Program (LCP) land use amendment to allow mixed-use development, including medium and high-density housing by right, on Parcel 1 at Marina Landing.

Indiana University Foundation, a 501(c)(3) nonprofit organization, whose sole purpose is to raise funds to support scholarships and other charitable activities at Indiana University is interested in maximizing the property’s value. We believe that this land use amendment will not only accomplish that outcome, but it will also positively benefit the residents of Marina.

As you know, the Marina Planning Commission carefully reviewed this matter and voted 6–1 in favor of recommending this additional usage. Their strong support reflects a practical and forward-looking approach to addressing both longstanding vacancy and Marina’s pressing housing needs.

For more than twenty years, Parcel 1 has remained stagnant while waiting for a retail user that has never materialized. Continuing to rely solely on a retail-only designation—particularly considering potential restrictions on drive-thru uses—will further diminish or eliminate the parcel’s market value. The result would be continued inactivity at one of the primary, and most visible, entry points to the city.

Economic reality tells us that what has not worked for two decades is unlikely to succeed without change. By contrast, allowing medium- and high-density housing—including much- needed affordable apartments—creates a viable path forward. Residential development would activate the site, improve aesthetics at this key gateway location, generate tax revenue, and support the need for local housing.

Importantly, housing can catalyze future neighborhood-serving retail. Once a residential base is established, retail (including drive-thru uses where appropriate) becomes far more feasible.

It is clear, retail will not precede housing under current conditions.

This proposal represents a practical, community-oriented solution that benefits Marina’s residents, strengthens the tax base, and aligns with the community’s broader housing

EXHIBIT C
14 priorities.

I respectfully ask for your support in approving this LCP land use amendment on March 3rd. I will be attending the meeting and welcome any opportunity to answer questions in advance or provide additional information which may be needed for your supporting vote.

Thank you for your time, consideration, and service to the Marina community. Please include this letter in the March 3, 2026 packet for distribution.

Sincerely,
Patrick K. McAleer
Indiana University Foundation, Inc.

Associate Vice President – Real Estate + Property
812-855-0204 (Office)

This e-mail message, including all attachments, is private and may contain confidential and privileged information. If you are not the intended recipient, do not use, disseminate, disclose, or copy this information. Please notify the sender by reply e-mail and immediately delete this message.

EXHIBIT C
15 February 25, 2026

Marina City Council Members
Via Anita Shepherd Sharp Via Email
City Of Marina
Deputy City Clerk

Guido Persicone
Economic Developer Director Via Email
City of Marina
Planning and Economic Development Department
211 Hillcrest Avenue
Marina, CA 93933

RE: Terry Tallen Property Marina Landing Shopping Center Mixed-Use Residential, Restaurant & Retail Overview
Retail Leasing Overview/History, 170 Beach Road Marina, CA

Dear City of Marina Team,

We are writing to provide candid feedback on the retail leasing challenges we continue to face at the Marina Landing project.

Retail leasing is our sole focus. Our firm represents national and regional tenants across California, including brands such as Chick-fil-A and Dutch Bros Coffee.

Our firm is deeply embedded in the retail real estate market and represent many of the top retail landlords and retailers, restaurants in northern, CA. We attend every major ICSC conference (ICSC formerly known as the Internation Council of Shopping Centers and currently known as Innovating Commerce Serving Communities) , the longstanding primary trade organization for retail real estate with 70,000 members in over 100 countries and actively track tenant requirements, site selection trends, and capital flows across the West Coast. We as well as Terry Tallen are longstanding ICSC members and we understand that Terry, a current member and has also been a member for nearly 40-years. We control one of the largest shares of active retail listings and tenant representation assignments in the Bay Area, which gives us constant, real-time feedback from retailers making location decisions today. The market feedback we are sharing is not theoretical or isolated. It reflects consistent input from a broad cross-section of national, regional, and emerging retail tenants we work with daily.

Despite extensive outreach, retail tenant response to Marina Landing has been consistently hesitant, and the feedback has been remarkably uniform.

EXHIBIT C
16 The primary challenge is the project’s location relative to Highway 1. The site sits far enough off the highway that it lacks the visibility and immediacy most retail tenants require, particularly those dependent on drive-by exposure and impulse traffic. From the tenant perspective, the site does not read as a natural retail stop for motorists or visitors unfamiliar with the area. This is why a mix of uses as we see at the Dunes and Marina Station is critical to bring this highly regarded mixed-use site into service.

On-site residents will be the catalyst to new site down and quick serve restaurants coming to Marina Landing and once the mixed-use residential can be announced we at Econic plan to provide a robust market presentation to our client, Chick-Fil-A to bring them back to the site Letter of Intents were previously negotiated on the site and the current state of the site caused Chick-Fil-A to pause. Concerns included lack of street visibility on the east side of the site, insufficient traffic counts, blighted conditions on the large portion of vacant land, graffiti on the leasing signs and concerns over Walmart’s long-term commitment to the market given the significant amount of retailer competition at the Dunes

Visibility within the trade area is also limited. Retail tenants rely on clear sightlines, strong signage presence, and obvious access points to justify the investment required to enter a new or unproven market. At Marina Landing, those fundamentals are difficult to demonstrate in a way that aligns with current underwriting standards.

We want to be very clear that this feedback is not for lack of effort. We have gone out broadly and repeatedly. At this time, most retailers we speak with are simply not comfortable committing to this location given the combination of visibility constraints, access considerations, lack of on-site housing stock and on-site residents to bolster daily retail and restaurant sales and distance from Highway 1.

Our goal in sharing this feedback is to be transparent and constructive.

If Marina Landing is to succeed as a retail destination, it will require additional support from on-site residential. This all being said the prospects for new sit-down and quick-serve restaurants with drive thru’s on the site would soar with a residential community on site whereas the resident can walk to the restaurants and have a true sense of community on the site. The combination of the fundamental for the Marina Landing are strong, however, the product type has to be in accordance with the market has demonstrated across the country. The retailers and restaurants want a “mix of uses” to allow for their best opportunities to derive strong sales volumes. Drive thru’s for restaurants are critical as historically drive thru’s add an additional 40%-70% in incremental gross sales vs a non-drive thru operation by virtue of the speed and convenience. Also, drive thru’s are key importance as they allow the restaurants to continue to operate during pandemics as we all recently experienced with the Covid-19 outbreak. Drive thru’s are critical to the eventual lease up and operations of the site once the residential component is open and operating.

We understand that the Marina Planning Commission wisely approved the mixed-use designation in November on a 6-1 vote for mixed-use and this common-sense approach should allow for the

EXHIBIT C
17 development of this key property. We will be in town with Terry and his team marketing the site to the attendees at the upcoming Monterey, CA ICSC conference at the Portola Plaza March 23-25, 2026.

We remain committed to working toward a successful outcome and are happy to engage further with the City to discuss realistic paths forward based on what the retail market is communicating today.

Regards,

Mike Conroy
Nicole Lyon
Executive Director

Mobile: (408) 458-0629
CalDRE License #02046912

www.theeconiccompany.com

EXHIBIT C
18 From: Terrence Tallen
To: Guido Persicone; Philip Angelo
Cc: Daniel Dokhanian; McAleer, Patrick; Kellen Clancy
Subject: FW: Marina Landing Tallen & Adjacent Parcel -Mixed Use Zoning - Follow Up Date: Wednesday, February 25, 2026 9:17:19 AM
Attachments: image002.png
CCC LCP Amendment 3.06.23 .pdf
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Good morning Guido,
Hope all is well and following back up with you.

We hear that you plan to go to the City Council without any specific recommendation but instead with three (3) potential options for the LCP Amendment.

We enthusiastically urge you and city leadership to go to the Council with the Planning Commission’s specific approved and recommended plan for mixed-use that recently received a 6-1 vote by the Marina Planning Commission. There is no need for three options and the plan under Task-4 is what is needed to provide the much-needed housing stock for not only the
public at large, Joby’s thriving employment base but also and very importantly our teaches, workers, seniors and other for the pending AFFORDABLE HOUSING COMPONENT of our project. Naturally, with the inclusion of housing then we believe that we can bring Chick-Fil-A with a drive thru back to the site as well as to bring popular sit-down restaurant to the property once there is housing to support the sale for Marina Landing on-site restaurants.

As the Planning Commission’s was very positive vote, we believe that it is most practical and in the best interests of all parties to focus the vote on Task-4 under the LPC and as conceived and drafted for the Coastal Commission and LCP (attached for reference) by the you, Alyson
Hunter and possibly other members of City of Marina’s Planning Department and the City Manager at the time.

Task 4 – Site Rezoning / LCP IP/ LUP
Task 4.1 Analyze sites for potential zoning and land use amendments Three sites have been identified that could benefit from an LCP Amendment to update their zoning to better match the potential and intent of the sites. The first site is the Brown Bulb Ranch site (APN 033-111-035,029). It is an infill site located on

EXHIBIT C
19 the corner of Beach Road and Del Monte Boulevard and adjacent to Walmart (Marina Landing Shopping Center) and Locke Paddon Park. The site is currently zoned Planned Commercial. The City “envisions" mixed-use development here, including a commercial and high-density residential mixed-use project, which would require a zoning designation change to allow for a high-density residential overlay.

Increasing density within the City Center will help the City achieve their housing needs in a more compact sustainable manner that avoids hazardous areas.

As this was our expectation and was duly reinforced by the Planning Commission’s wise vote, there is no need for any further options and it may just confuse the situation. As you are aware, Housing Stock is a key objective of Governor Newson’s agenda and increased housing stock in California much needed especially for teachers, the work force and our seniors and veterans.

We also formally propose that the city trades the dead uses that are allowed and promoted under the exiting “behind the times and primitive zoning codes ” currently in pace on the site
and trade out the following uses and replace them with what is desperately needed for location:

We proposed that you trade out and extinguish the following uses outlined below and Trade
Out the Old for the New by the city for the City Council Hearing including:

REMOVE AND TRADE OUT DEAD USES FROM THE LCP:

Jazzercise.

Millinery Shops. (Hat stores).

Radio Sales Shops
REPLACE AND ADD MODERN USES TO THE LCP AMENDMENT:

Town Homes.

Multifamily Units.

Condominiums.

Apartments.

Affordable Teacher Housing.

Affordable Veteran/Seniot Housing.

Affordable Work Force Housing, etc.

The Dunes and Marina Station are thriving while we are suffering and remain in a blighted condition due to antiquated and yesterday-year zoning regulations. As the Planning Commission understood in the most common sensical way possible, Marina Landing should have the same zoning and development rights as the Dunes and Marina Station. The above suggested removals and replacement can make this happen. Just trade them out to a brighter

EXHIBIT C
20 future for Marina.

The mix of uses at those two sites has allowed for their success and the lack of modern zoning on our site has directly led to and is the culprit establishing and maintaining the blight, homelessness and property crimes. We just nee the same zoning rights as our good neighbors.

Proper zoning
= smart growth and removal of blight.

Clearly the market, planning commission, City leadership (per the attached) and the stakeholders have spooked in this regard, we respectfully request that you pare the LCP recommendation down to Task-4 for the City Council hearing. This is clearly the best path forward for all parties for a brightened future in north Marina.

We look forward to working with hand in hand with you and City Leadership to finally make this a great project and that will benefit and be an amenity to the residents and visitors of Marina alike.

Happy to discuss
Please advise.

All the best,
Terry
Terrence Tallen
Founder & CEO
Tallen Capital Partners, LLC
President

Monterey Bay Investments, LLC
203 Flamingo Road
#362
Mill Valley, CA 94941
(415)-286-0712
www.tallencapital.com

EXHIBIT C
21 February 26, 2026 Item No. 13e
Honorable Mayor and Members City Council Meeting
of the Marina City Council of March 3, 2026
CITY COUNCIL TO ADOPT RESOLUTION NO. 2026 -, AUTHORIZING AND

DIRECTING STAFF TO ISSUE A REQUEST FOR PROPOSALS TO SOLICIT

QUALIFIED OPERATORS FOR A LONTER -TERM CONCESSIONAIRE

AGREEMENT FOR EQUESTRIAN PROGRAMS AT M ARINA EQUESTRIAN

CENTER, OR ALTERNATIVELY, TO CONSIDER AND PROVIDE DIRECTION TO STAFF TO DEVELOP OTHER PROGRAMMING OPTIONS FOR MEC.

REQUEST:

It is requested that the City Council adopt Resolution No. 2026-:

1. Authorizing the City Manager to issue a Request for Proposals (RFP) to solicit qualified operators for a long-term concessionaire agreement for equestrian programs at the Marina Equestrian Center Park (MEC Park); or

2. Alternatively, provide direction to Staff to develop other programming options for MEC Park.

BACKGROUND:

The Marina Equestrian Center Park (MEC Park) is a 27.235-acre property acquired by the City on April 13, 1998 from the United States of America as surplus property. The property was conveyed pursuant to the Defense Base Closure and Realignment Act of 1990 and the Federal Property and Administrative Services Act of 1949, subject to perpetual restrictions requiring its use exclusively for public park and public recreat ion purposes in accordance with an approved Program of Utilization. The National Park Servic e (NPS) retains oversight authority, and the United States retains enforcement authority, including reversionary rights.

Beginning in December 30, 2022, the City entered into a Concessionaire Agreement with Chaparral Country Corporation for equestrian operations at MEC Park. However, during 2025, the City identified multiple material violations of that Agreement.

The City issued Notices to Cure on September 23, 2025, and November 26, 2025, to Chaparral Country Corporation. Chaparral Country Corporation failed to provide any written response to either notice or to cure the identified breaches within the required timeframes.

On December 18, 2025, pursuant to Section 27.b of the Agreement, the City issued a Notice of Automatic Termination, effective immediately, due to failure to cure material breaches as set forth in the Notices to Cure.

ANALYSIS:

Staff recommends that the City Council authorize the City Manager to issue a Request for Proposals (RFP) to solicit qualified operators for a new concessionaire agreement.

The RFP process will allow the City to:
• Identify qualified operators with demonstrated experience in equestrian facility management;
1 • Evaluate proposals based on operational plans, financial capacity, and alignment with the Property's public recreation mission;
• Ensure compliance with federal conveyance requirements and NPS oversight; • Establish fair and transparent terms for long-term operations; and • Maximize public benefit and appropriate revenue to the City.

Staff anticipates the RFP process will take approximately five to six months, which includes time for developing the RFP, evaluating proposals, and bring ing back recommendations to the City Council to consider the award of a new concessionaire agreement. Any proposed long -term concessionaire agreement will require NPS concurrence pursuant to the Public Conveyance Deed.

As an alternative to the issuance of an RFP for a new concessionaire, Council can provide direction to staff to develop other programming options for MEC Park. In recent discussions with the National Park Service, they have confirmed that the City can operate other park and recreation uses on the property so long as they are compliant with NPS restrictions that the property must be used on ly for public (not private) recreation and park uses. Examples of different uses could include: a cycle park open to th e public that might include a cyclocross course, criterium course, mountain bike pocket park, velodrome, and inline skating course; or zipline, ropes course, and team building course; or park for day and overnight camping; or a par three golf and miniature golf course.

FISCAL IMPACT:

The fiscal impact will be minor, involving staff time preparing and issuing the request for proposals and reviewing the proposals after they are submitted.

CONCLUSION:

This request is submitted for City Council consideration and comment.

Layne P. Long
City Manager
City of Marina

2 RESOLUTION NO. 2026-
(Option 1)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MARINA

DIRECTING AND AUTHORIZING THE CITY MANAGER TO ISSUE A REQUEST

FOR PROPOSALS TO SOLICIT QUALIFIED OPERATORS FOR A LONG-TERM

CONCESSIONAIRE AGREEMENT FOR EQUESTRIAN PROGRAMS AT MEC PARK.

WHEREAS, the City of Marina ("City") owns certain land totaling 27.235 acres known as the Marina Equestrian Center Park ("MEC Park" or "Property"), obtained from the United States of America as surplus property and deeded to the City on April 13, 1998; and

WHEREAS, said conveyance occurred by Quitclaim Deed pursuant to the Defense Base Closure and Realignment Act of 1990, as amended, and the Federal Property and Administrative Services Act of 1949, as amended, and imposes perpetual restrictions requiring use of the Property exclusively for public park and public recreation purposes; and

WHEREAS, the Quitclaim Deed provides that the Property shall not be sold, leased, assigned or otherwise disposed of except to another eligible governmental agency, but permits the City to provide related recreational facilities and services compatible with the ap proved application through concession agreements with third parties, provided prior concurrence is obtained in writing from the Secretary of the Interior or their delegated representative, the National Park Service ("NPS"); and

WHEREAS, on December 30, 2022, the City entered into a Concessionaire Agreement with Chaparral Country Corporation for equestrian operations at MEC Park; and

WHEREAS, during 2025, the City identified multiple material violations of said Agreement by Chaparral Country Corporation, including failure to maintain the property in good condition, failure to comply with applicable laws, lapse in required insurance coverage, unauthorized assignment of the Agreement, and failure to submit required revenue reports and payments; and

WHEREAS, the City issued Notices to Cure on September 23, 2025 and November 26, 2025, and Chaparral Country Corporation failed to provide any written response or cure the identified breaches within required timeframes; and

WHEREAS, on December 18, 2025, the City issued a Notice of Automatic Termination of the Concessionaire Agreement, effective immediately, pursuant to Section 27.b thereof; and

WHEREAS, the City desires to conduct a competitive solicitation process to identify a qualified operator for a long-term concessionaire agreement for equestrian programs at MEC Park; and

WHEREAS, a Request for Proposals process will allow the City to evaluate prospective operators based on experience, operational plans, financial capacity, and alignment with the Property's public recreation mission and federal conveyance requirements.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Marina as follows:

1. The above recitals are hereby incorporated by reference;

2. The City Manager is hereby authorized to issue a Request for Proposals (RFP) to solicit qualified operators for a long-term concessionaire agreement for equestrian programs at the Marina Equestrian Center Park, consistent with the requirements of the Quitclaim Deed and applicable federal regulations.
3 Resolution No. 2026
Page Two

PASSED AND ADOPTED by the City Council of the City of Marina at a reg ular meeting duly held on the 3rd day of March 2026, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

_________________________
Bruce C. Delgado, Mayor

ATTEST:

_________________________
Anita Sharp, Deputy City Clerk

4 RESOLUTION NO. 2026-
(Option 2)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MARINA DIRECTING THE CITY MANAGER TO DEVELOP OTHER PROGRAMMING OPTIONS FOR MEC.

WHEREAS, the City of Marina ("City") owns certain land totaling 27.235 acres known as the Marina Equestrian Center Park ("MEC Park" or "Property"), obtained from the United States of America as surplus property and deeded to the City on April 13, 1998; and

WHEREAS, said conveyance occurred by Quitclaim Deed pursuant to the Defense Base Closure and Realignment Act of 1990, as amended, and the Federal Property and Administrative Services Act of 1949, as amended, and imposes perpetual restrictions requiring use of the Property exclusively for public park and public recreation purposes; and

WHEREAS, the Quitclaim Deed provides that the Property shall not be sold, leased, assigned or otherwise disposed of except to another eligible governmental agency, but permits the City to provide related recreational facilities and services compatible with the ap proved application through concession agreements with third parties, provided prior concurrence is obtained in writing from the Secretary of the Interior or their delegated representative, the National Park Service ("NPS"); and

WHEREAS, on December 30, 2022, the City entered into a Concessionaire Agreement with Chaparral Country Corporation for equestrian operations at MEC Park; and

WHEREAS, during 2025, the City identified multiple material violations of said Agreement by Chaparral Country Corporation, including failure to maintain the property in good condition, failure to comply with applicable laws, lapse in required insurance coverage, unauthorized assignment of the Agreement, and failure to submit required revenue reports and payments; and

WHEREAS, the City issued Notices to Cure on September 23, 2025 and November 26, 2025, and Chaparral Country Corporation failed to provide any written response or cure the identified breaches within required timeframes; and

WHEREAS, on December 18, 2025, the City issued a Notice of Automatic Termination of the Concessionaire Agreement, effective immediately, pursuant to Section 27.b thereof; and

WHEREAS, the City desires to consider alternative program options at MEC Park; and

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Marina as follows:

1. The above recitals are hereby incorporated by reference; and

2. The City Manager is directed to develop other programming options for MEC Park consistent with the Quitclaim Deed and other federal or state requirements and bring those options back to Council for further discussion and direction.

PASSED AND ADOPTED by the City Council of the City of Marina at a regular meeting duly held on the 3rd day of March 2026, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_________________________
Bruce C. Delgado, Mayor
ATTEST:

_________________________
Anita Sharp, Deputy City Clerk
5