Paso Robles City Council
December 3, 2024

58757.76
1020.00
873.00
1266.00
2404.00
594.00
365.oo 1

1..,,\ D_
8480.00 U
261.00 tv <ll..l.9\ 'Ji.le, 42.00 � J \ I 4520.00 �-
1866-00 -�\v �
1599_00 J CO'
���:�t\� qv�·
73248.oo 12 4, I 436.00 7
266.00
774.00

74.00 10.00
157095.76
452.00
904.00
561.00

40.00 6.00

45.00 35.00
HOW ARE WE DOING? WE WANT YOUR FEEDBACK!
Scan the QR code or use the link below to
complete a survey about your bids:
https:l/survey.medallia.com/?bidsorder&fc=596&on=831368 Exhibit A

FERGUSON ENTERPRISES LLC #686
Price Quotation
Fax: 805-546-8264
( \:47:03 MAY 24 2022
Reference No: 8762748
Item Description Quantity
SP-Dl350SJPUZ 6 CL 350 ZINC DI PIPE 18
UFLGU 6 FIELD LOK GSKT 1
SP-20VBIO 20" V-BIO POL YWRAP 1
SP-MJ9LAUZ 6 MJ 90 ZINC
SP-MJFALAUZ 6 MJ X FLG ADAPTER ZINC
SSLDEP6 6 DI MJ WDG REST GLND PK *ONELOK 4
FCRUP 6X4 DI 125# C110 FLG CONC RED 1
FFPPG 4X1'0 FLGXFLG CL BT DI SPL 1
BP150SS316P 4 150# SS 316 BLT KIT W/ NUT 1
FNWNA1RG116P 4 NA 1/16 150# RNG GSKT 1
IBCICFPY 4X9 BLK Cl 125# THRD COMP FLG
GBRNPCL LF 4XCLOSE BRS NIP GBL
JJ344HPPLBRZ 4X2-1 /2 FIP X HOSE ANG VLV W/ BRZ

SUBTOTAL
� ((uJ.

SP-FCR16UZ 16 X 6 FLG REDUCER ZINC
MA236119UOL 6 DI MJ X FLG RW OL GATE VLV UA
FBSSSETU 6 SS FLG BLT SET 2
FNWNA1RG116U 6 NA 1/16 150# RNG GSKT 2
SP-Dl350SJPUZ 6 CL 350 ZINC DI PIPE 18
UFLGU 6 FIELD LOK GSKT 1
SP-MJ9LAUZ 6 MJ 90 ZINC 1
SP-MJFALAUZ 6 MJ X FLG ADAPTER ZINC 1
SLDEP6 6 DI MJ WDG REST GLND PK *ONELOK 4
LlCICFP11 4X11 BLK Cl 125# THRD COMP FLG 1
SP-FCR10PZ 10 X 4 FLG REDUCER ZINC 1
MA236119POL 4 DI MJ X FLG RW OL GATE VLV UA 1
BP150SS304P 4 150# SS 304 BLT KIT W/ NUT 2
FNWNA1RG116P 4 NA 1/16 150# RNG GSKT 2
SP-Dl350SJPZ 4 CL 350 ZINC DI PIPE 18
SP-MJ9LAPZ 4 MJ 90 ZINC 1
SP-MJFALAPZ 4 MJ X FLG ADAPTER ZINC 1
SSLDEP4 4 DI MJ WDG REST GLND PK *ONELOK 4
IBCICFPY 4X9 BLK Cl 125# THRD COMP FLG 1
DDMH4045F 4 MNPT X 4-1/2 MNST DBL HEX NIP 2
SP-DPFCW450FY 4-1/2 THERMOPLAS HYD CAP 2
CG5 G-5BOX VLV BX NO LID 2
CG5CRW G-5C VL V BX Cl LID RECY WTR 2
CG12BOX G-12 Cl TRFC VLV BX ONLY 2
CG12CW G-12C Cl LID VLV BX - WTR 2

SUBTOTAL
�.v,
F202B 1840CC7 C DBL STRP BRZ SDL DI 3
F202BS111 OCC7 1 0X2 CC SS BAND BRS SDL F/ C900 10
FFB10007NL LF 2 CC X CTS PJ BALL CORP 10
FINSERT55 2 CTS PET INS STFNR 32
AX62250100 2X100 CTS DR9 250 PSI REC PURP 1100
FFV43777WNL LF 2 CTS COMP X MTR FLG ANG KEY VLV 10
CN36BOX N36 CNCRT ELEC BX L/ LID 10
SP-CB36GRW B36G RECYCLED WATER COVER 10
FC8477NL LF 2 MIP X CTS PJ COUP 2
FC4477NL LF 2 CTS X CTS COMP COUP 5
Net Price UM Total

26.750 FT 481.50

88.000 EA 88.00
499.000 EA 499.00
127.000 EA 127.00
103.000 EA 103.00

47.500 EA 190.00
127.000 EA 127.00
245.000 EA 245.00

12.000 EA 12.00

2.000 EA 2.00

34.000 EA 34.00

48.000 EA 48.00
580.000 EA 580.00
4579.50
723.000 EA 723.00
561.000 EA 561.00

20.000 EA 40.00

3.000 EA 6.00

26.750 FT 481.50

88.000 EA 88.00
127.000 EA 127.00
103.000 EA 103.00

47.500 EA 190.00

85.000 EA 85.00
326.000 EA 326.00
421.000 EA 421.00

12.000 EA 24.00

2.000 EA 4.00

36.950 FT 665.10

79.000 EA 79.00

79.000 EA 79.00

38.500 EA 154.00

34.000 EA 34.00
125.000 EA 250.00

25.000 EA 50.00

45.000 EA 90.00

35.000 EA 70.00
187.000 EA 374.00
165.000 EA 330.00
5354.60
372.000 EA 1116.00
240.000 EA 2400.00
269.000 EA 2690.00

4.000 EA 128.00

2.200 FT 2420.00
276.000 EA 2760.00

73.000 EA 730.00

87.000 EA 870.00

80.000 EA 160.00
115.000 EA 575.00
J [!]�[!] HOW ARE WE DOING? WE WANT YOUR FEEDBACK!
i���
Scan the QR code or use the link below to
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q�\-
s� 4t[pq, ·1)•d!JExhibit A

FERGUSON ENTERPRISES LLC #686
Price Quotation
Fax: 805-546-8264
.5:47:03 MAY 24 2022
Reference No: B762748
Item

IBRLFCAPK
F202BS1110CC7
FFB10007NL
FINSERT55
AX62250100
FC8477NL
FB11777NL
GBRNKM
AD040P02WS
TW12SLDUFW500
TW12SLDUFG500
TW12SLDUFP500
Description
LF 2 BRS CAP

SUBTOTAL
AIR&VAC \}( t, W
10X2 CC SS BAND BRS SOL F/ C900
LF 2 CC X CTS PJ BALL CORP
2 CTS PET INS STFNR
2X100 CTS DR9 250 PSI REC PURP
LF 2 MIP X CTS PJ COUP
LF 2 FIP X FIP BALL CURB ST
LF 2X3 BRS NIP GBL
LF 2 COMB AIR VLV F/ POTABLE WTR

SUBTOTAL
12GA SLD COP UF WIRE WHIT 500
12GA SLD COP UF WIRE GREE 500
12GA SLD COP UF WIRE PURP 500
) Item Code Description ------------------
1MJAP10 10 MJ C153 ACCY PK W/GLND
IMJAPX 8 MJ C153 ACCY PK W/GLND
CWRP20400BAWWA 20X400 8 MIL 20 PERF BLAC UP TO 8
DDMH4045F 4 MNPT X 4-1/2 MNST DBL HEX NIP
F202BS 111 0CC7 1 0X2 CC SS BAND BRS SOL F/ C900
FFB10007NL LF 2 CC X CTS PJ BALL CORP
FINSERT55 2 CTS PET INS STFNR
FC4477NL LF 2 CTS X CTS COMP COUP
FB44777NL LF 2 CTS X CTS PJ BALL CURB VLV
FL4477NL LF 2 CTS PJ 90 ELL
FC8477NL LF 2 MIP X CTS PJ COUP
FFV43777WNL LF 2 CTS COMP X MTR FLG ANG KEY VLV
IBRLFCAPK LF 2 BRS CAP
P40SMAK 2 PVC S40 SXM ADPT
P40BEPK20 2X20 FT PVC S40 BE PIPE
P40SCAPK 2 PVC S40 SOC CAP
F202BS1110CC4 10X1 CC SS BAND BRS SOL F/ C900
Quantity
2 2
20 1
2 1
1 6500
4500
3000
Net Price UM

16.000 ""l':"l\
240.000 EA
269.000 EA

4.000 EA

1.990 FT

80.000 EA
273.500 EA

10.000 EA
499.000 EA
235.000 M
235.000 M
235.000 M
Net Total:

Tax:

Freight:

Total:

Total

32.00 13881.00
240.00
269.00

8.00 g;}_ 39.80 J-1 .

80.00 ':ff f 07 '
c;;---
547.00 q q�

10.00� 499.00 ·'fa.Y
1692.80 J f I
1, Z'3
1527.50
1057.50
705.00
$663820.91 e,t, $58084.69 r{' e_Je.i.f $0.00 f\)� $7219056/\o\J V �-
Notice Qc)}� _t-,
& WARNING: Cancer and Reproductive Harm - (,( 1/
www.P65Warnings.ca.gov () & WARNING: Cancer and Reproductive Harm - \ 1 \' v'
www.P65Warnings.ca.gov t �- V\ & WARNING: Cancer www.P65Warnings.ca.gov \ \ ( &
www.P65
WARNING:

Warnings.ca.gov
Cancer and Reproductive harm - V\ \
&
www.p65warnings.ca.gov
WARNING: Cancer and Reproductive Harm
&
www.p65warnings.ca.gov
WARNING: Cancer and Reproductive Harm
&
www.p65warnings.ca.gov
WARNING: Cancer and Reproductive Harm
&
www.p65warnings.ca.gov
WARNING: Cancer and Reproductive Harm
&
WWW.p65warnings.ca.gov
WARNING: Cancer and Reproductive Harm
&
www.p65warnings.ca.gov
WARNING: Cancer and Reproduclive Harm
&
www.p65warnings.ca.gov
WARNING: Cancer and Reproductive Harm
&
www.p65warnings.ca.gov
WARNING: Cancer and Reproductive Harm
&
www.p65warnings.ca.gov
WARNING: Cancer and Reproductive Harm
& WARNING: Cancer and Reproductive Harm - www.P65warnings.ca.gov & WARNING: Cancer and Reproductive Harm - www.P65warnings.ca.gov & WARNING: Cancer and Reproductive Harm - www.P65warnings.ca.gov &
www.p65warnings.ca.gov
WARNING: Cancer and Reproductive Harm
) HOW ARE WE DOING? WE WANT YOUR FEEDBACK!
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Tract 3069 Improvements Reimbursement
Sewer Force Main
Spurr Co. Contract Change Order No. 03
• Spurr’s total for change order 03 was $70,434.91, however only the 10-inch items for the Force Main are allowed for reimbursement.
• The reimbursable amount is calculated as the difference in the 10-inch Force Main items between the May 25, 2022 and November 1, 2021 Price Quotations. o 2022 Price Quote: $95,920.00 + 318.00 + 285.00 + 37.00 + 5.00 + 170.00 = $96,735.00
o 2021 Price Quote: $73,700.00 + 279.00 + 250.00 + 35.00 + 5.00 + 150.00 = $74,419.00
o $96,735.00 - $74,419.00 = $22,316.00
o Arrow used below to signify where the above numbers came from. • As noted in the 2021 Oversized Improvements Reimbursement Agreement Tract 3069, Recitals paragraph H, the city agrees to reimburse for 75% of the total cost.

So 75% of $22,316.00 is equal to $16,737.00
Exhibit B

[il £W)�(wnID)
S,sh<--d
Date-: 16-May-22 sn�co. Lie. # 708343A
To: JUSTIN VINEYARDS & WINERY LLC
11680 CHIMNEY ROCK ROAD
PASO ROBLES, CA 93446
Attn: ZACH LERNO sil(e developmeni specilalils(s
P.O. Box 1920 Puo Robles, CA 93"7 I cell: eos.,71.3672 J off"a: 105.238.0134 J tax: IOS.231.0450 I emaU: dav-e,purrco.com

CONTRACT CHANGE ORDER
•' • JOBTITLE: TRACT 3069 IMPROVEMENTS (PREVAILING WAGE) WONDERFUL COMPANY JOB#: 21-045 - SUMMARY: ADDITIONAL COST FOR MATERIAL PRlCE INCREASE FROM CONTRACT DA TE UNTIL TODAY. STORM DRAIN WAS NOT AFFECTED AS SPURRCO ORDERED THOSE MATERIALS WHILE WAITING FOR THE PLANS TO BE APPROVED BY THE CITY WITH ASSURANCE THE CHANGES WERE MINIMAL ON THE STORM DRAIN. THIS DOES NOT INCLUDE MATERIAL PRICE INCREASES TO THE RECYCLED WATER SYSTEM.

Change Order# : 03
CAT. I ITEM
Reauested Add:

GRAVITY SEWER

SEWER FORCE MAINS

DOMESTIC WATER SYSTEM
Spurr Co.
(tnklatH.re)
Subtotal:

Subtotal:

QUANT I UNIT I COST/UNIT
1 LS $5332.45
1 LS $28665.41
1 LS �36437.05
- -•·--
I I I
TOTAL:

I COST DESCRIPTION
5332.45 PER DESCRIFTION ABOVE AND ATTACHED MATERIAL OUOTES 28 665.41 PER OESCRIFTION ABOVE ANO ATTACHED MATER'"' QUOTES 36 437.05 PER DESCRIPTION ABOVE ANO ATTACHED MATERIAL QUOTES

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 o�oo0.00

0.00 0.00

0.00 70,434.91

0.00 70,434.91
Pago 1 o(2
-
Customer
llnltlal .._,.,
Exhibit B

(_,
The original construction agreement/ proposal are hereby modified and amended by the following dlvlatlons from the original plans and speclflcaUons.

It is mutually agreed that for such change the contract price Is Increased by $70,434.91 payable within 30 days of Invoicing whether the general contractor has been paid or not. The cost to recover payments that falls under tht original construction agreement/proposal will stlll beln affect.

Time for completion of the above cited work Is hereby extended o days beyond any completion date set fourth In the original contract for such work.

All other provisions of the orlglnal contract and proposal shall remain Jn full force and effect without change because of the above deviations. This change order whether signed or not wJII be an attachment to the general contractors change order and all above tanns will be In affect.

Spurr Co.
(lnlial...,_)
TOTAL: 70,434.91

CUSTOMER SIGNATURE I DATE

CUSTOMER (PRINT)
5116/2022

SPURR CO, I DATE

Cuslomer
(lnb:iaJHer.)
Exhibit B

FERGUSON ENTERPRISES, LLC #632
4546 BROAD STREET
SAN LUIS OBISPO, CA 93401
Phone: 805-594-5380
Deliver To:

From: Scott Henderson
Comments:
};:::;::;:;:::::::::::::::=:=:=::--::=:;---:-�:-:---F-a_x_: _80_5_-5_4_6--8-26_4 ____________________________ _ G42:22 NOV 01 2022) "6�d ¾-5
<. FERGUSON ENTERPRISES LLC #686
Price Quotation
Bid No: 8762748
Bid Date: 08/05/21
Quoted By: SHE
Customer: DAVE SPURR EXCAVATING INC

NEED JOB NUMBERS
PO BOX 1920
PASO ROBLES, CA 93447
Cust PO#:

Item Description

STORM DRAIN
A 18650020OW 18X20 F2648 W/TITE SLD HOPE PIPE
':>.1801AN 18 N12 END CAP
,1865AA 18 N12 HOPE SPLT COUP
A24650020DW 24X20 F2648 W/TITE SLD HOPE PIPE
A30650020DW 30X20 F2648 W/TITE SLD HOPE PIPE
A3001AN 30 N12 HOPE FAB END CAP
A3065AA 30 N12 HOPE SPLT COUP

SUBTOTAL
SEWER
SDR35PX20 8X20 SDR35 PVC GJ SWR PIPE
MUL340990 8 PVC SWR SW CAP
MUL063296 8X6 PVC SWR GXGXG WYE
MUL063406 6 PVC SWR GXS 45 BEND
SDR35PU20 6X20 SDR35 PVC GJ SWR PIPE
MUL340988 6 PVC SWR SW CAP

SUBTOTAL

FORCE MAIN
DR14GPP 4 C900 DR14 PVC GJ GREE PIPE
MJ4LAP 4 MJ C153 45 BEND LIA
MJTLAP 4 MJ C153 TEE UA
MJSCAPLAP 4 MJ C153 SLD CAP L/A
Phone: 805-594-5380
Fax: 805-546-8264
Cust Phone: 805-238-0834
Terms:

Ship To:

NET 10TH PROX

DAVE SPURR EXCAVATING INC

NEED JOB NUMBERS
PO BOX 1920
PASO ROBLES, CA 93447
Job Name: TRACT 3069
Quantity Net Price UM Total
980 14.150 FT 13867.00
2 225.000 EA 450.00
2 32.000 EA 64.00
180 22.700 FT 4086.00
2460 32.150 FT 79089.00
1 467.500 EA 467.50
1 106.000 EA 106.00
98129.50
1820 8.110 FT 14760.20
1 22.000 EA 22.00
12 53.000 EA 636.00
12 15.500 EA 186.00
800 4.450 FT 3560.00
12 7.000 EA 84.00
19248.20
1960 6.550 FT 12838.00
1 45.000 EA 45.00
6 72.000 EA 432.00
7 21.000 EA 147.00

SSLCEP4 4 PVC WDG REST GLND PK *ONELOK 27 32.000 EA 864.00 DR14GP10 10 C900 DR14 PVC GJ GREE PIPE 2200 33.500 FT 73700.00 MJF4LA10 10 MJXFLG C153 45 BEND LIA 1 279.000 EA 279.00 MJF2LA10 10 MJXFLG C153 22-1/2 BEND UA 1 250.000 EA 250.00 FBSSSET1210 10-12 SS FLG N&B SET 7/8X4 1 35.000 EA 35.00 FNWNA1RG11610 10 NA 1/16 150# RNG GSKT 1 5.000 EA 5.00
MJSCAPLA10 10 MJ C153 SLD CAPUA 2 75.000 EA 150.00
[!]
w.;�-j[!J HOW ARE WE DOING? WE WANT YOUR FEEDBACK!
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��:St.. https :/Is urvey .med a llia.com/?bidsorder&fc=596&on=831368 Exhibit B

)
Bid No:

Bid Date:

Quoted By:

Customer:

Cust PO#:

Item
A 18650020OW
l801AN
r1865AA
A24650020DW
A30650020DW
A3001AN
A3065AA
SDR35PX20
MUL340990
MUL063296
MUL063406
SDR35PU20
MUL340988
DR14GPP
MJ4LAP
MJTLAP

MJSCAPLAP
SSLCEP4
DR14GP10
MJF4LA10
MJF2LA10
FBSSSET1210
8762748
08/05/21
SHE
FERGUSON ENTERPRISES, LLC #632
4546 BROAD STREET
SAN LUIS OBISPO, CA 93401
Phone: 805-594-5380
Fax: 805-546-8264
Deliver To:

From: Scott Henderson
�omments:
kw�sc.d I� �c.�cJc.d w�·t<./ J FERGUSON ENTERPRISES LLC #686 Price Quotation
Phone: 805-594-5380
Fax: 805-546-8264
Cust Phone: 805-238-0834
Terms: NET 10TH PROX

DAVE SPURR EXCAVATING INC Ship To: DAVE SPURR EXCAVATING INC

NEED JOB NUMBERS
PO BOX 1920
PASO ROBLES, CA 93447
Job Name:

Description Quantity

STORM DRAIN
18X20 F2648 W/TITE SLD HOPE PIPE 980
18 N12 END CAP 2
18 N12 HOPE SPLT COUP 2
24X20 F2648 W/TITE SLD HOPE PIPE 180
30X20 F2648 W/TITE SLD HOPE PIPE 2460
30 N12 HOPE FAB END CAP 1
30 N12 HOPE SPLT COUP 1

SUBTOTAL
SEWER'
8X20 SDR35 PVC GJ SWR PIPE 1820
8 PVC SWR SW CAP 1
8X6 PVC SWR GXGXG WYE 12
6 PVC SWR GXS 45 BEND 12
6X20 SDR35 PVC GJ SWR PIPE 800
6 PVC SWR SW CAP 12

SUBTOTAL

FORCE MAIN
4 C900 DR14 PVC GJ GREE PIPE 1960
4 MJ C153 45 BEND L/A 1
4 MJ C153 TEE UA 6
4 MJ C153 SLD CAPUA 7
4 PVC WDG REST GLND PK *ONELOK 27
10 C900 DR14 PVC GJ GREE PIPE 2200
10 MJXFLG C153 45 BEND LIA 1
10 MJXFLG C153 22-1/2 BEND UA 1
10-12 SS FLG N&B SET 7/8X4 1

NEED JOB NUMBERS
PO BOX 1920
PASO ROBLES, CA 93447
TRACT 3069
Net Price UM

14.150 FT
225.000 EA

32.000 EA

22.700 FT

32.150 FT
467.500 EA
106.000 EA

10.180 FT

26.000 EA

61.000 EA

17.500 EA

5.700 FT

8.000 EA

8.350 FT

53.000 EA

84.000 EA

24.000 EA

42.000 EA

43.600 FT
318.000 EA
285.000 EA

37.000 EA
Total
13867.00
450.00

64.00 4086.00
79089.00
467.50
106.00
98129.50
�o 18527.60

26.oo, ;_.\ �o) • 1J., �
732.00 •�4 210.00 \\ ' 4
4560.00 _/i\ f',
'f '.ll I

96.00 24151.60 � � !:J
16366.00

53.00 504.00
168.00
1134.00
95920.00
318.00
285.00

37.00 FNWNA1RG11610 10 NA 1/16 150# RNG GSKT 1 5.000 EA 5.00 MJSCAPLA10 10 MJ C153 SLD CAPUA 2 85.000 EA 170.00
OO�r.JOO
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Exhibit B

FERGUSON ENTERPRISES LLC #686
Price Quotation
Fax: 805-546-8264
13:07:08 MAY 16 2022
Reference No: 8762748
Item Description Quantity Net Price UM Total
SSLCEP10 10 PVC WDG REST GLND PK 'ONElOK 4 129.000 7=A 516.00

SUBTOTAL
·tb,CL- Mo.\V'I.115476.00
--
WATER
S46110651220000 10 *QUANTU COUP 10.65-12.20 1 250.000 EA 250.00 DR18BP10 10 C900 DR18 PVC GJ BLUE PIPE 2460 33.340 FT 82016.40 MJ4LA10 10 MJ C153 45 BEND L/A 5 174.000 EA 870.00
MJ9LA10 10 MJ C153 90 BEND LIA 1 233.000 EA 233.00
MJ2LA10 10 MJ C153 22-1/2 BEND LIA 4 174.000 EA 696.00
MJFALA10 10 MJXFLG C 153 ADPT LIA 2 213.000 EA 426.00
MJSCAPLA10 10 MJ C153 SLD CAP LIA 1 85.000 EA 85.00
SSLCEP10 10 PVC WDG REST GLND PK *ONELOK 29 129.000 EA 3741.00 SPWPC10 10 SIGMA BELL REST F/ C900 *PVLOK 2 157.000 EA 314.00 FT10 10 DI 125# C110 FLG TEE 2 644.000 EA 1288.00
MA23611910OL 10 DI MJ X FLG RW OL GATE VLV LIA 6 1599.000 EA 9594.00 FBSSSET1210 10-12 SS FLG N&B SET 7/8X4 6 37.000 EA 222.00 FNWNA1RG11610 10 NA 1/16 150# RNG GSKT 6 5.000 EA 30.00 CG5 G-5BOX VLV BX NO LID 6 45.000 EA 270.00
CG5C G-5C VLV BX Cl LID WTR 6 35.000 EA 210.00
SUBTOTAL 100245.40
Fl RE SERVICE w�...,....-
SLCEP10 10 PVC WDG REST GLND PK *ONELOK 20 129.000 EA 2580.00 ,v1JFTLA10X 10X8 MJXFLG C153 TEE LIA 10 373.000 EA 3730.00 MA236119X OL 8 MJ X FLG RW OL GATE VLV LIA 10 860.000 EA 8600.00 FBSSSETU 6 SS FLG BLT SET 10 20.000 EA 200.00
FNWNA1RG116X 8 NA 1/16 150# RNG GSKT 10 3.500 EA 35.00
CG5 G-5BOX VL V BX NO LID 10 45.000 EA 450.00
CG5C G-5C VLV BX Cl LID WTR 10 35.000 EA 350.00
SSLDEP8 8 DI MJ WDG REST GLND PK *ONELOK 20 65.000 EA 1300.00 DI350SJPX 8 CL350 DI SJ PIPE 612 28.700 FT 17564.40
SPWPC8 8 SIGMA BELL REST F/ C900 *PVLOK 28 91.000 EA 2548.00 CWRP20400BAWWA 20X400 8 MIL 20 PERF BLAC UP TO 8 2 150.000 EA 300.00 MJSCAPLAX 8 MJ C153 SLD CAP LIA 10 68.000 EA 680.00
SUBTOTAL 38337.40
FIRE HYDRANT w1t\J
SSLCEP10 10 PVC WDG REST GLND PK *ONELOK 10 129.000 EA 1290.00 MJFTLA10U 10X6 MJXFLG C153 TEE L/A 5 347.000 EA 1735.00 MA236119UOL 6 DI MJ X FLG RW OL GATE VLV LIA 5 561.000 EA 2805.00 FBSSSETU 6 SS FLG BLT SET 5 20.000 EA 100.00
FNWNA1RG116U 6 NA 1/16 150# RNG GSKT .5 3.000 EA 15.00
CG5 G-5BOX VLV BX NO LID 5 45.000 EA 225.00
CG5C G-5C VLV BX Cl LID WTR 5 35.000 EA 175.00
SSLDEP6 6 DI MJ WDG REST GLND PK *ONELOK 10 47.500 EA 475.00 DI350SJPU 6 CL350 DI SJ PIPE 126 22.050 FT 2778.30
SPWPC6 6 SIGMA BELL REST F/ C900 *PVLOK 5 54.000 EA 270.00 MA423LAOLMJP 5-1/4 A423 HYO 4'0 BURY MJ OL LIA 5 3560.000 EA 17800.00 SUBTOTAL 27668.30

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Exhibit B

Date: 20-Apr-23
To: JUSTIN VINEYARDS & WINERY LLC
11680 CHIMNEY ROCK ROAD
PASO ROBLES, CA 93446
Attn: ZACH LERNO
INSTALL ADDITIONAL ASPHALT AS NOTED 1 LS $189,080.00 189,080.00 ADD .5" ASPHALT APPROX 9,071 SF AT THE ROUNDABOUT AND ADD 2" ASPHALT TO THE

0.00 REMAINDER OF THE PROJECT APPROX 84,842 SF SO THE WHOLE PROJECT HAS 6.5" ASPHALT REMOVE 7" OF DIRT TO DEEPEN THE SUBGRADE 1 LS $18,375.00 18,375.00 STATION 31+25 TO 41+00 PER EARTH SYSTEM LETTER DATED 12-13-22 REMOVE 2" OF DIRT TO DEEPEN THE SUBGRADE 1 LS $15,035.00 15,035.00 STATION 41+00 TO 52+60 PER EARTH SYSTEM LETTER DATED 12-13-22 ADD 5" OF CLASS 2 BASE 1 LS $65,400.00 65,400.00 STATION 31+25 TO 41+00 PER EARTH SYSTEM LETTER DATED 12-13-22 TRUCKING RATE INCREASE FOR 5" BASE 132 EA $50.00 6,600.00 RATE INCREASE FROM BID DATE TO NOW. SEE ATTACHED SHEETS

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00
294,490.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 TOTAL: 294,490.00
CAT. ITEM UNIT
Subtotal:

QUANT
Subtotal:

COST/UNIT COST
Requested Deduction:

DESCRIPTION
Requested Add:

Change Order # : 09R
SUMMARY: ADDITIONAL BASE AND ASPHALT PER THE REVISED STRUCTURAL PAVEMENT SECTION FROM EARTH SYSTEMS. PRICE INCLUDES MATERIAL PRICE INCREASES FROM THE ORIGINAL BID DATE TO NOW AND THE BASE AND ASPHALT THICKNESS INCREASES FROM EARTH SYSTEM. ALSO INCLUDED IS THE EARTHWORK NEEDED TO REMOVE THE DIRT IN ORDER TO PLACE THE EXTRA BASE AND ASPHALT. ALL WORK IS FIGURED AT PREVAILING WAGES. ADDITIONAL INCREASE IN THE TRUCKING RATES FOR HAULING IN THE CLASS 2 BASE. THERE IS A TOTAL OF 13,335 TONS OF BASE TO HAUL IN. AT 24 TONS PER LOAD THAT EQUALS 560 LOADS. ATTACHED ARE THE TRUCKING RATES FROM 1/1/2022 AND THE CURRENT RATE SHEET 3/13/2023. THE INCREASE IS $25.00 PER HOUR WITH A 2 HR ROUND TRIP EQUALS $50.00 PER LOAD.

CITY OF PASO
JOB TITLE: TRACT 3069 IMPROVEMENTS (PREVAILING WAGE) WONDERFUL COMPANY JOB#: 21-045

CONTRACT CHANGE ORDER
P.O. Box 1920 Paso Robles, CA 93447 | cell: 805.471.3672 | office: 805.238.0834 | fax: 805.238.0450 | email: [email protected] Lic. # 708343A
________
Spurr Co.
(Initial Here) Page 1 of 2
________
Customer
(Initial Here)
Exhibit C

TOTAL: 294,490.00
4/20/2023
SPURR CO. | DATE

CUSTOMER (PRINT)
The original construction agreement / proposal are hereby modified and amended by the following diviations from the original plans and specifications.

It is mutually agreed that for such change the contract price is increased by $294,490 payable within 30 days of invoicing whether the general contractor has been paid or not. The cost to recover payments that falls under the original construction agreement / proposal will still be in affect.

Time for completion of the above cited work is hereby extended 0 days beyond any completion date set fourth in the original contract for such work.

All other provisions of the original contract and proposal shall remain in full force and effect without change because of the above deviations. This change order whether signed or not will be an attachment to the general contractors change order and all above terms will be in affect.

CUSTOMER SIGNATURE | DATE
________
Spurr Co.
(Initial Here) Page 2 of 2
________
Customer
(Initial Here)
Exhibit C

Council Agenda Report
From: Warren Frace, Community Development Director
Subject: Acceptance of Easement Deed for an expansion of an existing public bike path and pedestrian easement at Stoney Creek from People’s Self Help Housing, located near Nicklaus Drive.

CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Date: December 3, 2024
Facts

1. On August 1, 2023, the City Council approved a settlement agreement with Entrada de Paso Robles LLC to resolve an unpermitted grading issue with the acceptance of a public benefit project.

2. The public benefit project was the installation of a new bike and pedestrian trail bridge across Stoney Creek where a previous trail crossing had been damaged and removed.

3. The Stoney Creek trail segment connects from Niblick Road to Nicklaus Street in an open space parcel that was part of a 2005 subdivision.

4. The bikeway segment is part of the City’s 2018 Bicycle and Pedestrian Master Plan.

5. During final design of the bridge footings, it was determined that the bridge needed to be moved further away from a City sewer main.

6. The new bridge location was outside of the existing bikeway easement and required an additional easement to be obtained from the property owner People’s Self Help Housing.

7. On November 4, 2024, People’s Self Help Housing signed the easement, at no cost to the City, which allows the City the rights to ensure the bridge can be constructed.

8. Entrada de Paso Robles LLC is scheduled to install the new bridge in spring of 2025.

Community Outreach
No community outreach has been part of the easement acquisition process. The bikeway segment is part of the City’s 2018 Bicycle and Pedestrian Master Plan that included a robust public participation process.

Options

1. Take no action (do not accept the easement); or

2. Approve Resolution 24-XXX, accepting the Easement Deed for an expansion of an existing public bike path and pedestrian easement and authorize the City Manager or designee to sign and record the Easement; or

3. Refer back to staff for additional analysis; or

4. Provide alternative direction to staff.

Analysis and Conclusions
Stoney Creek path is a well-used trail without a safe way to cross the creek. The original creek crossing was an undersized culvert that eventually washed out and had to be removed. Installation of a new trail bridge will provide a safe creek crossing that will benefit all trail users.

Existing condition of trail crossing of Stoney Creek

Trail Bridge Concept Plan
Fiscal Impact
As a condition of the settlement agreement, Entrada de Paso Robles LLC is responsible for all costs related to construction and installation of the trail bridge.

CEQA
The City finds that this action is not a project under the California Environmental Quality Act pursuant to State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378 because the approval of the easement in itself will not result in a direct or reasonably foreseeable indirect physical change in the environment.

Recommendation (Option 2)
Approve Resolution 24-XXX accepting the Easement Deed for an expansion of an existing public bike path and pedestrian easement and authorize the City Manager or designee to sign and record the Easement.

Attachments

1. 2018 Bicycle and Pedestrian Plan

2. Stoney Creek Bridge Concept

3. Resolution 24-XXX – Accepting Easement Deed
a. Exhibit A – Easement Deed

Attachment 1 2018 Bicycle and Pedestrian Plan
Attachment 1

Attachment 2 Trail Bridge Concept
Attachment 2

Attachment 3
RESOLUTION 24-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES

ACCEPTING AN EASEMENT DEED FOR AN EXPANSION OF AN EXISTING PUBLIC BIKE PATH AND PEDESTRIAN EASEMENT AT STONEY CREEK FROM PEOPLE’S SELF HELP HOUSING,

LOCATED NEAR NICKLAUS DRIVE

STONEY CREEK TRAIL EASEMENT
WHEREAS, On August 1, 2023, the City Council approved a settlement agreement with Entrada de Paso Robles LLC to resolve an unpermitted grading issue with the acceptance of a public benefit project; and
WHEREAS, the public benefit project was the installation of a new bike and pedestrian trail bridge across Stoney Creek where a previous trail crossing had been damaged and removed; and WHEREAS, the Stoney Creek trail segment connects from Niblick Road to Nicklaus Street in an open space parcel was part of a 2005 subdivision; and
WHEREAS, the bikeway segment is part of the City’s 2018 Bicycle and Pedestrian Master Plan; and WHEREAS, during final design of the bridge footings, it was determined that the bridge needed to be moved further away from a City sewer main; and
WHEREAS, the new bridge location was outside of the existing bikeway easement and required an additional easement be obtained from the property owner People’s Self Help Housing; and WHEREAS, on November 4, 2024, People’s Self Help Housing signed the easement at no cost to the City, which allows the City the rights to ensure the bridge can be constructed; and WHEREAS, Entrada de Paso Robles LLC is scheduled to install the new bridge in spring of 2025; and WHEREAS, the City Council finds that this action is not a project under the California Environmental Quality Act pursuant to State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378 because the approval of the easement in itself will not result in a direct or reasonably foreseeable indirect physical change in the environment.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. All of the above recitals are true and correct and incorporated herein by reference.

Section 2. The City Council hereby accepts the Easement Deed for Public Utility Purposes and authorizes the City Manager or designee to sign and record the Easement as shown in Exhibit A.

Section 3. The documents and materials that constitute the record of proceedings on which these findings are based are located at the City’s offices at 1000 Spring Street, Paso Robles, California 93446. The City Clerk is the custodian of the record of proceedings.

Attachment 3
APPROVED this 3
rd day of December 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

John R. Hamon, Jr., Mayor
ATTEST:

Melissa Boyer, City Clerk
Exhibit A – Easement Deed

Exhibit
A

other obstruction, or generally unreasonably interfere with Grantee's rights herein granted within the Easement Property, or diminish or substantially add to the ground over the Easement Property.

The Grantor shall not make any improvements within the Easement Property which interferes with or will interfere with the Grantee's exercise of its rights under this Easement. The Grantee, its employees and its agents have the right to enter and lease the Easement Property with workers, equipment and material in order to inspect and survey the Easement Property and to carry out the rights for the purposes herein granted.

The rights, conditions, restrictions and duties created by this deed are irrevocable by the Grantor and shall run with the land and shall accrue to and be binding on the successors-in-interest, heirs and assigns of the Grantor and Grantee.

Dated: f I I '1 l /Joiy
Exhibits:

A. Legal Description
B-1. Easement Plat
B-2. Easement Detail Plat
GRANTOR:

By: __ _j��:::::===-- Kenneth Trigueiro
CEO & President
Oak Grove Housing, Inc.
(SIGNATURE MUST BE NOTARIZED)
Exhibit A

Exhibit
A

Exhibit
A

Exhibit
A

Exhibit
A

Exhibit
A

Exhibit
A

Exhibit
A

Exhibit
A

Council Agenda Report
From: Ryan Cornell, Administrative Services Director
Subject: Approval of a Resolution Determining that the Public Convenience and Necessity Require the Special Tax for Improvement Area No. 2 of the City of Paso Robles Community Facilities District No. 2022-1N (Olsen Ranch/South Chandler Facilities) be Revised and A CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Date: December 3, 2024
Facts

1. The Mello-Roos Community Facilities Act of 1982, as amended, commencing with Government Code Section 53311 (the “Act”) permits public agencies, including cities, to establish a Community Facilities District (CFD) which allows for financing the construction of public infrastructure and certain services.

2. CFDs impose a special tax on property owners within the CFD boundary through an annual special tax levy collected on the property tax bill. This financing mechanism allows new development to pay for significant public infrastructure and augmented public service needs over time. But because the CFD special tax is added to the existing standard ad valorem property tax bill, it also creates potentially significant tax bills when compared to properties not located in CFD boundaries.

3. Pursuant to the Act, in 2022, the City previously formed City of Paso Robles Community Facilities District No. 2022-1N (Olsen Ranch/South Chandler – Facilities) (the “District”) and designated improvement areas therein.

4. The owner of the property within Improvement No. 2 of the District has now requested changes to the Rate and Method of Apportionment of Special Tax for Improvement Area No. 2 (the “IA 2 RMA”) to modify the special taxes.

Options

1. Take no action;

2. Approve the Resolution of Consideration;

3. Provide alternative direction to staff.

Analysis and Conclusions
The Act was enacted by the California Legislature to provide an alternate method of financing certain essential public capital facilities and services, especially in the developing areas of the State of California.

Once duly established by a city, county, or other local agency, a CFD is a separate legal entity with defined boundaries, with the governing board or legislative body of the local agency acting on its behalf. Subject to approval by a two-thirds vote of the qualified electors in compliance with the provisions of the Act, a legislative body of a local agency may issue bonds for a CFD and may levy and collect a special tax within a CFD to repay such indebtedness.

The Owner is now requesting a change to the IA 2 RMA in order to modify the special taxes levied by the District within Improvement Area No. 2. The process of making such a change requires three major steps:
(1) adopting a Resolution of Consideration to initiate the process, (2) conducting a public hearing on the Resolution and (3) submitting the tax to the voters (here the landowners in Improvement Area No. 2) via a special election. The enclosed Resolution of Consideration is the first step. It would schedule a public hearing for January 15, 2025 for affected parties to provide comments regarding the proposal. The measure requires two-thirds support of the voters to be approved.

In connection therewith, the first resolution to be considered by the City Council is the Resolution of Consideration which does the following:
• Declares the intention of the City Council to consider the modification of the existing IA 2 RMA;
• Sets a public hearing to be held on January 15, 2025 to consider approval of said modifications; and
• Approves the Assignment, Assumption and Amending Agreement, which amends the related Funding and Acquisition Agreement for the project.

As mentioned above, adoption of the Resolution sets the date, time and place for a public hearing on the matters set forth in the Resolution, including the proposed changes to the IA 2 RMA. At the public hearing, testimony of all interested persons will be heard. Protests will be considered at the hearing. The proposed date of the public hearing is January 15, 2025, at 6:00 p.m. in the City Council Chambers.

Fiscal Impact
None. Properties within the Improvement Area No. 2 will be subject to an annual special tax collected by the County in the same manner as ad valorem property taxes, pursuant to the IA 2 RMA.

CEQA
The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Recommendation
Approve Resolution 24-XXX, determining that the public convenience and necessity require the special tax for Improvement Area No. 2 of Paso Robles Community Facilities District No. 2022-1N (Olsen Ranch/ South Chandler – Facilities) be revised and approval of a related assignment, assumption, and amending agreement.

Attachments

1. Resolution 24-XXX – Paso Robles CFD No. 2022-1N Resolution of Consideration a. Exhibit A - Amended Rate and Method for Improvement Area No. 2

2. Assignment, Assumption and Amending Agreement

3. Amended Rate and Method for Improvement Area No. 2 – redlined

Attachment 1
RESOLUTION 24-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES

DETERMINING THAT THE PUBLIC CONVENIENCE AND NECESSITY REQUIRE THE SPECIAL TAX FOR IMPROVEMENT AREA NO. 2 OF CITY OF PASO ROBLES COMMUNITY FACILITIES DISTRICT NO. 2022-1N (OLSEN RANCH/SOUTH CHANDLER – FACILITIES) BE REVISED AND APPROVAL OF A RELATED

ASSIGNMENT, ASSUMPTION AND AMENDING AGREEMENT
WHEREAS, the City Council (the “City Council”) of the City of El Paso de Robles (the “City”) has received a written petition (the “Petition”) from Brookfield Holdings (Mirabella) LLC, a Delaware limited liability company (the “Owner”), the owner of the territory within Improvement Area No. 2 (“Improvement Area No. 2”) of the City of Paso Robles Community Facilities District No. 2022-1N (Olsen Ranch/South Chandler – Facilities) (the “Community Facilities District”) requesting that the City Council initiate proceedings pursuant to the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code (the “Act”), to revise the Rate and Method of Apportionment of Special Tax for Improvement Area No. 2; and WHEREAS, the City Council has determined that the public convenience and necessity require the changes proposed in the aforementioned Petition, and that it should, therefore, adopt a resolution of consideration pursuant to Sections 53331 and 53334 of the California Government Code to initiate proceedings for the consideration of such changes.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES, AS FOLLOWS:

Section 1. Findings. The City Council finds as follows:
(a) The public convenience and necessity require the proposed changes specified in the preceding recitals;
(b) There are not any persons registered to vote within the territory of Improvement Area No. 2; and
(c) Pursuant to Section 53326 of the California Government Code, the vote in the special election on the changes which are proposed by this Resolution, if it is held, shall, therefore, be by the landowners within Improvement Area No. 2 of the Community Facilities District, with each landowner of record at the close of the public hearing having one vote for each acre or portion of an acre of land that he or she owns within Improvement Area No. 2.

Section 2. The Community Facilities District, Improvement Area No. 2. The Community Facilities District is known as “City of Paso Robles Community Facilities District No. 2022-1N (Olsen Ranch/South Chandler Ranch – Facilities).” The territory within Improvement Area No. 2 of the Community Facilities District is generally shown and described on the boundary map entitled “Boundaries of City of Paso Robles Community Facilities District No. 2022-1N (Olsen Ranch/South Chandler Ranch – Facilities), County of San Luis Obispo, State of California” recorded on July 8, 2022 in Book 6 of Maps of Assessment and Community Facilities Districts at Pages 36-37, and as Document No. 2022-028170, in the Office of the County Recorder in the County of San Luis Obispo, State of California.

Section 3. Amended Rate and Method. It is proposed that the Rate and Method of Apportionment of Special Tax for Improvement Area No. 2 be revised as set forth in Exhibit “A” attached hereto.

Attachment 1
Section 4. Hearing. A public hearing regarding the proposed changes identified in Section 3 hereof shall be held on January 15, 2025 at 6:00 p.m. in the City Council Chambers, located at City Hall, 1000 Spring Street, Paso Robles, California.

Section 5. Description of Voting Procedures for Improvement Area No. 2. Since less than 12 persons are registered to vote within the territory of Improvement Area No. 2, pursuant to Section 53326 of the California Government Code (“Section 53326”), the vote in the special election on the changes which are proposed by this resolution with respect to Improvement Area No. 2 will be by the landowners of the property located within Improvement Area No. 2, with each landowner of record at the close of the public hearing having one vote for each acre or portion of an acre of land that he or she owns within the Improvement Area No. 2, and the special election shall be conducted as a mail ballot election. The special election shall be conducted by the Clerk of the City Council (the “Clerk”).

Section 6. The special election shall be held on the earliest date, following the conclusion of the public hearing, as may be selected by the City Council, pursuant to Section 53326, or such earlier date as the owners of land with Improvement Area No. 2 and the Clerk agree and concur is acceptable. Pursuant to Section 53326, the special election may be held earlier than 90 days following the close of the public hearing if the qualified electors of Improvement Area No. 2 waive the time limits for conducting the election set forth in Section 53326 by unanimous written consent and the Clerk concurs in such earlier election date as shall be consented to by the qualified electors. Pursuant to Section 53326, ballots for the special election shall be distributed to the qualified electors by the Clerk by mail with return postage prepaid, or by personal service, and the special election shall be conducted in conformance with the applicable requirements of Section 53326, 53327 and 53327.5 of the California Government Code. The procedures set forth in this section for conducting the special election, if it is held, may be modified as the City Council may determine to be necessary or desirable by a resolution subsequently adopted by the City Council.

Section 7. Approval of Assignment, Assumption and Amending Agreement. An Assignment, Assumption and Amending Agreement (the “Assignment”), by and among the City, Owner, K.

Hovnanian Communities, Inc., and Olsen Ranch 212, LLC is hereby approved in the form presented to the Board at the meeting at which this Resolution is adopted, and the City Manager, City Treasurer, or either of their designees are authorized to execute and deliver such Assignment, together with any and all changes, additions and deletions therein as the officer executing the same may approve, such approval to be conclusively evidence by the execution and delivery thereof.

Section 8. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption.

APPROVED this 6th day of February, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

John R. Hamon, Jr. , Mayor
ATTEST:

Melissa Boyer, City Clerk
Exhibit A – Paso Robles CFD No 2022-1N (IA No. 2) Amenda RMA Final

EXHIBIT A

AMENDED AND RESTATED

RATE AND METHOD OF APPORTIONMENT FOR
IMPROVEMENT AREA NO. 2
[Attached]
Exhibit A

1 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities)

AMENDED AND RESTATED RATE AND METHOD OF

APPORTIONMENT OF SPECIAL TAXES
IMPROVEMENT AREA NO. 2 OF

CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2022-1N
(OLSEN/SOUTH CHANDLER RANCH - FACILITIES)
A Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels in Improvement Area No. 2 ("IA No. 2") of City of Paso Robles Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities) ("CFD No. 2022-1N (IA No. 2)") and collected each Fiscal Year commencing in Fiscal Year 2024-2025, in an amount determined by the Council, through the application of this Rate and Method of Apportionment as described below. All of the real property in CFD No. 2022-1N (IA No. 2), unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A DEFINITIONS
The terms hereinafter set forth have the following meanings:
"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, parcel map, condominium plan, or other recorded County parcel map.
"Act" means 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.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2022-1N (IA No. 2): the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2022-1N (IA No. 2) or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022-1N (IA No. 2) or any designee thereof of complying with City, CFD No. 2022-1N (IA No. 2), major property owner, or obligated persons disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2022-1N (IA No. 2), or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2022-1N (IA No. 2) for any other administrative purposes of CFD No. 2022-1N (IA No. 2), including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure, or otherwise addressing the disposition of delinquent Special Taxes.

Exhibit A

2 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) "Assessor’s Parcel" means any real property to which an Assessor’s Parcel Number is assigned as shown on an Assessor’s Parcel Map.
"Assessor’s Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C below. “Authorized Facilities” means the facilities authorized to be financed by CFD No. 2022-1N.
"Backup Special Tax" means the Special Tax of that name described in Section C below.
"Bonds" means any bonds or other debt as defined in Section 53317(d) of the Act, whether in one or more series, issued by CFD No. 2022-1N for IA No. 2 under the Act. "Boundary Map" means a recorded map which indicates the boundaries of CFD No. 2022-1N (IA No. 2).
"Building Permit" means the first legal document issued by the City giving official permission for the construction of a building on an Assessor’s Parcel. For purposes of this definition and application of the Special Tax, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the CFD Administrator.
"Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes.
"CFD No. 2022-1N" means the City of Paso Robles Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch – Facilities).
“City” means the City of Paso Robles.
"Council" means the City Council.
"County" means the County of San Luis Obispo.
"Developed Property" means, for each Fiscal Year, all Taxable Property located within a Final Map that was recorded as of January 1 of the prior Fiscal Year, for which a Building Permit was issued prior to May 1 of the prior Fiscal Year. “Dwelling Unit” means one residential unit of any configuration, including, but not limited to, a single-family attached or detached dwelling, condominium, mobile home, or otherwise, excluding hotels and motels. A casita or accessory dwelling unit (“ADU”) of any configuration shall not be counted as a separate Dwelling Unit for purposes of this Rate and Method of Apportionment.
“Exempt Welfare Exemption Property” means, for each Fiscal Year, an Assessor’s Parcel that, prior to the issuance of Bonds, received a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code (or any Exhibit A

3 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) successor statute), as indicated in the County’s assessor’s roll finalized as of January 1 of the previous Fiscal Year, and is exempt from the Special Tax pursuant to Section 53340(c) of the Act.
"Final Map" means (i) a final map, or portion thereof, approved by the County pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) that creates individual lots or parcels for which Building Permits may be issued without further subdivision, or (ii) for condominiums, a final map approved by the County and a condominium plan recorded pursuant to California Civil Code Section 4285 creating such individual lots or parcels.
"Final Mapped Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied; and (ii) for which a Building Permit has not been issued on or before May 1 preceding the Fiscal Year in which the Special Tax is being levied.
"Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area No. 2" or "IA No. 2" means Improvement Area No. 2 of CFD No. 2022-1N.
"Indenture" means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time.
"Land Use Class" means any of the categories listed in Table 1 herein. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel within CFD No. 2022-1N (IA No. 2).
“Non-Residential Floor Area” means the total building square footage of the nonresidential building(s) located on an Assessor’s Parcel, measured from outside wall to outside wall, not including space devoted to stairwells, public restrooms, lighted courts, vehicle parking and areas incident thereto, and mechanical equipment incidental to the operation of such building. The determination of Non-Residential Floor Area shall be made by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or to the appropriate records kept by the City, as reasonably determined by the CFD Administrator.
"Non-Residential Property" means all Assessor's Parcels of Taxable Property for which a Building Permit(s) was issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1. “Property Owner’s Association” means, collectively, any property owner association Exhibit A

4 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) or homeowners association, including any master or sub-association, created for CFD No. 2022-1N (IA No. 2).
"Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2022-1N (IA No. 2) that was owned by a Property Owner Association, as of January 1 of the prior Fiscal Year. "Proportionately" means, for Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. For Taxable Property Owner Association Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Taxable Property Owner Association Property. For Taxable Public Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Taxable Public Property.
"Public Property" means, for each Fiscal Year, any property within CFD No. 2022-1N (IA No. 2) that is owned by, irrevocably offered for dedication to, or dedicated to the federal government, the State, the City, or any other public agency as of June 30 of the prior Fiscal Year; provided however that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by, irrevocably offered for dedication to, or dedicated to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. “Rate and Method of Apportionment” means this Amended and Restated Rate and Method of Apportionment of Special Taxes, City of Paso Robles, Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities). "Residential Floor Area" means all of the square footage of living area within the perimeter of a Dwelling Unit, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The CFD Administrator shall determine the Residential Floor Area based upon the Building Permit(s) issued for such Dwelling Unit.
"Residential Property" means Developed Property, for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. "Special Tax" means a special tax levied in any Fiscal Year to pay the Special Tax Requirement.
“Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay debt service on all Outstanding Bonds; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds to the extent such establishment or replenishment has not been included in a computation of the Special Tax Requirement in a previous Fiscal Year; (v) pay directly for the acquisition or construction of Authorized Facilities to the extent that inclusion of such amount Exhibit A

5 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) does not increase the Special Tax levy on Final Mapped Property or Undeveloped Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the historical delinquency rate for CFD No. 2022-1N (IA No. 2) as determined by the CFD Administrator; less (vii) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. "State" means the State of California.
"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 2022-1N (IA No. 2) which are not exempt from the Special Tax pursuant to law or Section E below.
"Taxable Property Owner Association Property" means all Assessor’s Parcels of Property Owner Association Property that are not exempt pursuant to Section E below.
"Taxable Public Property" means all Assessor’s Parcels of Public Property that are not exempt pursuant to Section E below.
“Total Floor Area” means the sum of the Residential Floor Area and the NonResidential Floor Area located on an Assessor’s Parcel. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property” means all Assessor’s Parcels of Taxable Property which are not Developed Property, Final Mapped Property, Public Property, or Property Owner’s Association Property.

B ASSIGNMENT TO LAND USE CLASSES
Each Fiscal Year, beginning with Fiscal Year 2024-2025, each Assessor’s Parcel of Taxable Property shall be classified as Developed Property, Final Mapped Property, Undeveloped Property, Public Property and/or Property Owner’s Association Property.

Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non-Residential Property. Each Assessor’s Parcel of Residential Property shall be further categorized into Land Use Classes based on its Residential Floor Area and assigned the appropriate Assigned Special Tax.

The determination of the Residential Floor Area shall be made by reference to the original Building Permit issued for the Dwelling Unit of an Assessor’s Parcel. The Building Permit may include any subsequent document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property in each year will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses in each year.

C MAXIMUM SPECIAL TAX RATE
C.1 Developed Property
The Maximum Special Tax for each Assessor’s Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax.

Exhibit A

6 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Residential Property or Non-Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.

Table 1: Assigned Special Tax for Developed Property
Land Use
Class
Description Assigned Special Tax
1 RESIDENTIAL PROPERTY (>= 2,300 SF) $6,588 PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (2,200 - 2,299 SF) $6,391 PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (2,100 - 2,199 SF) $6,076 PER DWELLING UNIT 4 RESIDENTIAL PROPERTY (2,000 - 2,099 SF) $5,760 PER DWELLING UNIT 5 RESIDENTIAL PROPERTY (1,900 - 1,999 SF) $5,563 PER DWELLING UNIT 6 RESIDENTIAL PROPERTY (< 1,900 SF) $5,248 PER DWELLING UNIT 7 NON-RESIDENTIAL PROPERTY $34,020 PER ACRE
Backup Special Tax
The Backup Special Tax for each Assessor’s Parcel of Residential Property in a Final Map shall be computed by multiplying the Acreage of all Taxable Property (excluding Acreage associated with current or expected Non-Residential Property, Taxable Public Property, or Taxable Property Owner Association Property, if any) in such Final Map by $34,020, and dividing the product by the number of such Assessor’s Parcels (i.e., the number of residential lots) in such Final Map.

Notwithstanding the foregoing, if all or any portion of a Final Map is subsequently changed or modified, then the Backup Special Tax for each Assessor’s Parcel of Residential Property in such Final Map, or the portion thereof that is changed or modified, shall be a rate per Acre calculated as follows:

1. Determine the total Backup Special Taxes anticipated to apply to the changed or modified portion of the Final Map prior to the change or modification.

2. Divide the amount determined pursuant to paragraph 1 above by the total Acreage of Residential Property excluding Non-Residential Property, Taxable Public Property, and Taxable Property Owner Association Property which is ultimately expected to exist in such changed or modified Final Map area, as reasonably determined by the CFD Administrator.

3. The result is the Backup Special Tax per Acre which shall be applicable to all Assessor's Parcels of Residential Property in such changed or modified Final Map.

C.2 Final Mapped Property
The Maximum Special Tax for each Assessor’s Parcel of Final Mapped Property expected to be classified as Residential Property shall be the Backup Special Tax computed pursuant to Section C.1.b above.

C.3 Undeveloped Property, Taxable Property Owner Association Property, Exhibit A

7 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) and/or Taxable Public Property.

The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Property Owner Association Property, or Taxable Public Property shall be $34,020 per Acre.

C.4 Multiple Land Use Classes
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. The annual Maximum Special Taxes levied on an Assessor’s Parcel shall be the sum of the Maximum Special Taxes for all Land Use Classes located on that Assessor’s Parcel. If an Assessor’s Parcel of Developed Property includes Non-Residential Property, the Acreage to be assigned to such property for purposes of establishing the Special Tax shall be an amount proportional to the Total Floor Area associated with Non-Residential Property, as applicable. Furthermore, for a condominium plan, if only a portion of its Building Permits have been issued, the remaining portion of the condominium plan shall be considered Final Mapped Property. The CFD Administrator’s allocation to each type of property shall be final.

D APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2024-2025 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the total Special Tax levy equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:

First: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement.

Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Final Mapped Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Third: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to 100% of the Maximum Special Tax as needed to satisfy the Special Tax Requirement.

Fifth: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Property Owner Association Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Exhibit A

8 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) Parcel as needed to satisfy the Special Tax Requirement.

Sixth: If additional moneys are needed to satisfy the Special Tax Requirement after the first five steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than 10% above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.

E EXEMPTIONS
No Special Tax shall be levied on Property Owner Association Property or Public Property in CFD No. 2022-1N (IA No. 2), provided that an Assessor’s Parcel shall not be exempt and shall be classified as Taxable Property Owner Association Property and Taxable Public Property if exempting such property would reduce the sum of all Taxable Property to less than 30.1 Acres. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which such Assessor’s Parcels or portions thereof in CFD No. 2022- 1N (IA No. 2) become Public Property or Property Owner Association Property. However, should an Assessor’s Parcel no longer be classified as Public Property or Property Owner Association Property, it will, from that point forward, be subject to the Special Tax.

Property Owner Association Property or Public Property that is not exempt from the Special Tax under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fifth step and sixth step in Section D above, respectively, at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property or Taxable Public Property.

In addition, no Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Exempt Welfare Exemption Property.

F APPEALS AND INTERPRETATIONS
Any taxpayer may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes.

During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax on the appellant’s property.

If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the clerk of the Council, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for the disagreement with the CFD Administrator’s determination.

Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.

G PREPAYMENT
Exhibit A

9 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) The following additional definitions apply to this Section G:
“CFD Public Facilities” means $14,400,000 or such lower amount (i) authorized by the Council to provide the public facilities to be funded under CFD No. 2022-1N (IA No. 2), or (ii) determined by the Council concurrently with a covenant that it will not issue any more Bonds to be supported by the Special Tax levied under this Rate and Method of Apportionment.
“Construction Fund” means a fund held by the Trustee to fund CFD Public Facilities. “Future Facilities Cost” means the CFD Public Facilities minus public facility costs previously funded, or that can be funded from funds in the Construction Fund. “Outstanding Bonds” means all previously issued Bonds secured by the levy of the Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of the Special Tax.

G.1 Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued; and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property that are not exempt pursuant to Section E.

The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 2022-1N (IA No. 2) in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such Prepayment Amount.

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

Prepayment Amount
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
Exhibit A

10 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Special Tax Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:

1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.

2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued, Public Property or Property Owner’s Association Property to be prepaid, compute the Maximum Special Tax for the Assessor’s Parcel.

3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied at the Maximum Special Tax at build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid.

4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).

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

6. Determine the Future Facilities Cost.

7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel, which amount shall not be less than $0 (the “Future Facilities Amount”).

8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from the Prepayment Amount.

9. Determine the Special Tax levied on the Assessor’s Parcel in the current Fiscal Year which has not yet been paid.

10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Exhibit A

11 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) Outstanding Bonds to be redeemed with the Prepayment Amount.

11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).

12. Verify the administrative fees and expenses of CFD No. 2022-1N (IA No. 2), including the cost of computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).

13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of:
(a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the Prepayment Amount, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the Prepayment Amount from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.

14. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest payment following the current Fiscal Year, the capitalized interest credit (the “Capitalized Interest Credit”) shall be calculated by multiplying the quotient derived pursuant to paragraph 3 by the expected balance in the capitalized interest account after such first interest payment.

15. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit, less the Capitalized Interest Credit.

16. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by CFD No. 2022-1N (IA No. 2).

The Prepayment Amount may not be sufficient to redeem an aggregate principal amount of Outstanding Bonds which is equally divisible by $5,000. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.

As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Exhibit A

12 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) Special Tax for such Assessor’s Parcel shall cease.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.

G.2 Prepayment in Part
The Maximum Special Tax obligation for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued; and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property that are not exempt pursuant to Section E, may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section G.1 shall be modified as provided by the following formula:

PP = ((PE –A) x F) +A
These terms have the following meaning:

PP = The partial prepayment;
PE = The Prepayment Amount calculated according to Section G.1; F = The percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax obligation; and
A = The Administrative Fees and Expenses determined pursuant to Section G.1.

The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 2022-1N (IA No. 2) in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment for the Assessor’s Parcel. A Partial Prepayment must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.

With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 16 of Section G.1, and (ii) indicate in the records of CFD No. 2022-1N (IA No. 2) that there has been a Partial Prepayment for the Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of Special Tax obligation will continue on the Assessor’s Parcel pursuant to Section D.

Exhibit A

13 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities)

H SPECIAL TAX REDUCTION
The following definitions apply to this Section H:
"Base Price" means, with respect to the Dwelling Units in each Plan Type, as of the date of the applicable Price Point Study, the base price of such Dwelling Units, estimated by the Price Point Consultant as of such date, based upon their actual or expected characteristics, such as living area, view, or lot size, but excluding potential appreciation or premiums, options or upgrades.
"Plan Type" means a discrete residential plan type generally consisting of residential Dwelling Units that share a common product type (e.g., detached, attached) and that have nearly identical amounts of living area, that is constructed or expected to be constructed within CFD No. 2022-1N (IA No. 2) as identified in the Price Point Study. "Price Point Consultant" means any consultant or firm of such consultants selected by CFD No. 2022-1N (IA No. 2) that (a) has substantial experience in performing price point studies or otherwise estimating or confirming pricing for Dwelling Units within community facilities districts, (b) is well versed in analyzing economic and real estate data that relates to the pricing of Dwelling Units in community facilities districts, (c) is independent and not under the control of CFD No. 2022-1N (IA No. 2), the City, or the developer, (d) does not have any substantial interest, direct or indirect, with or in CFD No. 2022-1N (IA No. 2), the City, any owner of real property in CFD No. 2022- 1N (IA No. 2), or any real property in CFD No. 2022-1N (IA No. 2), and (e) is not connected with CFD No. 2022-1N (IA No. 2) or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 2022-1N (IA No. 2) or the County.
"Price Point Study" means a price point study or a letter updating a previous price point study, which (a) has been prepared by the Price Point Consultant, (b) sets forth the Plan Types constructed or expected to be constructed within CFD No. 2022-1N (IA No. 2), (c) sets forth the estimated number of constructed and expected Dwelling Units for each Plan Type, (d) sets forth estimates of the Base Price for each Plan Type and (e) uses a date for establishing such Base Prices that is no earlier than 30 days prior to the date the Price Point Study is delivered to the CFD Administrator pursuant to Section H herein.
"Total Effective Tax Rate" means, for a Plan Type, (a) the Total Tax Burden for such Plan Type divided by (b) the Base Price for such Plan Type, converted to a percentage. "Total Effective Tax Rate Limit" means, 1.90%.
"Total Tax Burden” means, with respect to a Plan Type, for the Fiscal Year for which the calculation is being performed, the sum of the Assigned Special Tax and estimated ad valorem property taxes, special assessments, special taxes for any overlapping community facilities districts, and any other governmental taxes, fees and charges levied or imposed on Dwelling Units of such Plan Type in CFD No. 2022- 1N (IA No. 2) in such Fiscal Year or that would have been levied on all such Dwelling Units had these Dwelling Units been subject to such levies (excluding homeowner’s association dues and Property Assessed Clean Energy (“PACE”) charges imposed pursuant to AB 811 or SB 555, that are levied on individual Assessor’s Parcels, or any other charges applicable to the Assessor’s Parcels initiated by the homeowner after the close of escrow).

Exhibit A

14 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) Prior to the issuance of a second series of Bonds (or the first series of Bonds, if such series is the final series of Bonds, as determined by the City), the following steps shall be taken for each Land Use Class of for-sale Residential Property in CFD No. 2022- 1N (IA No. 2) for evaluating the Special Tax:

Step No.:

1. At least 30 days prior to the issuance of Bonds, a Price Point Study shall be completed and delivered to the CFD Administrator.

2. The CFD Administrator shall determine the Total Tax Burden and Total Effective Tax Rate for each Plan Type in CFD No. 2022-1N (IA No. 2).

3. Separately, for each Land Use Class of for-sale Residential Property in CFD No. 2022-1N (IA No. 2), the CFD Administrator shall determine whether or not the Total Effective Tax Rate for all Plan Types in a Land Use Class is less than or equal to the Total Effective Tax Rate Limit.
a. If the Total Effective Tax Rate for all Plan Types in a Land Use Class in CFD No. 2022-1N (IA No. 2) is less than or equal to the Total Effective Tax Rate Limit, then there shall be no reduction in Special Tax for such Land Use Class in CFD No. 2022-1N (IA No. 2).
b. If the Total Effective Tax Rate for any Plan Type in a Land Use Class in CFD No. 2022-1N (IA No. 2) is greater than the Total Effective Tax Rate Limit , the CFD Administrator shall calculate a revised Assigned Special Tax for that Land Use Class in CFD No. 2022-1N (IA No. 2), such that the revised Assigned Special Tax does not cause the Total Effective Tax Rate for any Plan Type in such Land Use Class to exceed the Total Effective Tax Rate Limit.

4. If the Assigned Special Tax for any Land Use Class is revised pursuant to step

3.b. above, the CFD Administrator shall also prepare and execute a Certificate to Amend the Special Tax substantially in the form of Exhibit “A” hereto and shall deliver such Certificate to Amend the Special Tax to CFD No. 2022-1N (IA No. 2). The Certificate to Amend the Special Tax shall be completed for all Land Use Classes and shall set forth, as applicable, either (i) the reduced Assigned Special Tax for a Land Use Class as calculated pursuant to step 3.b., or (ii) the Assigned Special Tax as identified in Table 1 of Section C for a Land Use Class that was not revised as determined pursuant to step 3.a. A reduction to the Assigned Special Tax in one Land Use Class shall not require a reduction in any other Land Use Class.

5. If the anticipated date of issuance of Bonds is within 180 days of the date of receipt of the Price Point Study by the CFD Administrator, CFD No. 2022-1N (IA No. 2) shall execute the acknowledgement on such Certificate to Amend the Special Tax dated as of the closing date of such Bonds, and upon the closing of such Bonds, the Assigned Special Tax for each Land Use Class shall be as set forth in such Certificate to Amend the Special Tax. If the date of issuance of Bonds is not within 180 days of the date of receipt of the Price Point Study by the CFD Administrator, such Certificate to Amend the Special Tax shall not be acknowledged by CFD No. 2022-1N (IA No. 2) and shall, as of such date, be void and of no further force and effect. In such case, if subsequently Bonds are expected to be issued, at least 30 days prior to that Exhibit A

15 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) expected date, steps 1 through 5 of this section shall be performed based on a new Price Point Study.

6. After the execution by CFD No. 2022-1N (IA No. 2) of the acknowledgement on the Certificate to Amend the Special Tax, CFD No. 2022-1N (IA No. 2) shall cause to be recorded in the records of the County Recorder an Amended Notice of Special Tax Lien for CFD No. 2022-1N (IA No. 2) reflecting the Assigned Special Tax for CFD No. 2022-1N (IA No. 2) set forth in such Certificate to Amend the Special Tax.

7. If the Assigned Special Tax is not required to be changed for any Land Use Class based on the calculations performed under step 3 above, there shall be no reduction in the Assigned Special Tax and no Certificate to Amend the Special Tax shall be required.

I MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2022-1N (IA No. 2) may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.

J TERM OF SPECIAL TAX
The Special Taxes shall be levied until the final series of Bonds have matured, provided that the Special Taxes shall not be levied after Fiscal Year 2073-2074. The Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that all required interest and principal payments on the Bonds have been paid, no delinquent Special Taxes remain uncollected, and the City has covenanted that it will not issue any more Bonds (other than refunding Bonds) to be supported by Special Taxes levied under this Rate and Method of Apportionment as described in Section D.

Exhibit A

A-1 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities)

EXHIBIT A

CERTIFICATE TO AMEND THE SPECIAL TAX
IMPROVEMENT AREA NO. 2

OF THE CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2022-1N (OLSEN/SOUTH

CHANDLER RANCH - FACILITIES)

TAX REDUCTION CERTIFICATE

1. Pursuant to Section H of the Rate and Method of Apportionment, as attached to the Notice of Special Tax Lien, recorded in the Official Records of the County of San Luis Obispo as Instrument No. XXXXXX on MM/DD/YYYY, the City of Paso Robles (the “City”) hereby reduces the Assigned Special Taxes for Developed Property within CFD No. 2022- 1N (IA No. 2) set forth in Table 1 of the Rate and Method of Apportionment for CFD No. 2022-1N (IA No. 2).

2. The calculations made pursuant to Section H were based upon a Price Point Study that was received by the CFD Administrator on _________________.

3. The information in Table 1, relating to the Assigned Special Tax for Developed Property within CFD No. 2022-1N (IA No. 2) shall be amended and restated in full as follows:

Exhibit A

A-2 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) Table A-1: Assigned Special Tax for Developed Property
Land Use
Class
Residential Floor Area Assigned Special Tax
1 RESIDENTIAL PROPERTY (>= 2,300 SF) [$ ] PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (2,200 - 2,299 SF) [$ ] PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (2,100 - 2,199 SF) [$ ] PER DWELLING UNIT 4 RESIDENTIAL PROPERTY (2,000 - 2,099 SF) [$ ] PER DWELLING UNIT 5 RESIDENTIAL PROPERTY (1,900 - 1,999 SF) [$ ] PER DWELLING UNIT 6 RESIDENTIAL PROPERTY (< 1,900 SF) [$ ] PER DWELLING UNIT 7 NON-RESIDENTIAL PROPERTY $34,020 PER ACRE

4. Upon execution of the certificate by the City and CFD No. 2022-1N (IA No. 2), the City shall cause an amended Notice of Special Tax Lien for CFD No. 2022-1N (IA No. 2) to be recorded reflecting the modifications set forth herein.

Submitted:

CFD ADMINISTRATOR
By: Date:

By execution hereof, the undersigned acknowledges, on behalf of CFD No. 2022-1N (IA No. 2), receipt of this certificate and modification of the Rate and Method of Apportionment as set forth in this certificate.

Improvement Area No. 2 of Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities) of the City of Paso Robles.

By: Date as of:

Exhibit A

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ASSIGNMENT, ASSUMPTION, AND AMENDING AGREEMENT
Relating to:

IMPROVEMENT AREA NO. 2 OF
COMMUNITY FACILITIES DISTRICT NO. 2022-1N OF THE CITY OF EL PASO DE ROBLES THIS ASSIGNMENT, ASSUMPTION, AND AMENDING AGREEMENT (this "Assignment"), dated as of _________, 2024, is by and among the City of El Paso De Robles, a charter city and municipal organization organized and operating under the laws of the State of California (the “City”), Olsen Ranch 212, LLC, a California limited liability company (the “Master Developer”), K. Hovnanian Communities, Inc. a California corporation ( “KHOV”), and Brookfield Holdings (Mirabella) LLC, a Delaware limited liability company (the “Land Bank”), with respect only to (i) the property in Improvement Area No. 2 (as defined below (the “Property”) and (ii) the Authorized Fees identified in Appendix A attached hereto (“Authorized Fees”). Each of the City, the Master Developer, KHOV, and the Land Bank may be referred to herein as a “Party” or, collectively, as the ”Parties.”

RECITALS
A. The City Council of the City has established the City of Paso Robles Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch – Facilities) (the “CFD”) under the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code (the “Act”) for the financing of certain facilities (the “Facilities”), and the Authorized Fees. The CFD consists of several improvement areas, including Improvement Area No. 2 (“Improvement Area No. 2”).

B. The CFD, and each Improvement Area therein, was created to assist in financing the Facilities and the Authorized Fees required to be constructed or paid as a condition of developing the Olsen Ranch project (the "Project").

C. The Master Developer was under contract (the “PSA”) with KHOV for the sale of the Property. Prior to the closing, the PSA was assigned by KHOV to the Land Bank. On August 2, 2024, the Master Developer conveyed the Property to the Land Bank.

D. KHOV and the Land Bank entered into the Option Agreement (Mirabella), dated August 2, 2024 (the “Option Agreement”), whereby KHOV has the option, but not the obligation, to acquire subdivided lots of the Property from the Land Bank pursuant to a takedown schedule.

E. As used in this Assignment, (i) during the term of the Option Agreement, the term “Builder” shall mean exclusively KHOV, regardless of whether any portion of the Property is owned by the Land Bank; and (ii) if the Option Agreement is terminated prior to the conveyance of all of the Property to KHOV, the term “Builder” shall mean (A) KHOV with respect to the portion of the Property owned by KHOV, (B) the Land Bank with respect to the portion of the Property owned by the Land Bank, and (C) if the Land Bank enters into an agreement for the sale of any part of the Property to a replacement builder (“Replacement Builder”) and the Land Bank assigns

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the Assigned Rights and Assigned Obligations to such Replacement Builder and the Replacement Builder has assumed such Assigned Rights and Assigned Obligations, the Replacement Builder with respect to the portion of the Property subject to the agreement with the Land Bank and/or owned by such Replacement Builder.

F. KHOV and the Land Bank also entered into the Construction Agreement, dated August 2, 2024 (the “Construction Agreement” and together with the Option Agreement, the “Land Bank Documents”), whereby KHOV will, for a fee, develop the Property into finished lots so that they may be conveyed to KHOV pursuant to the Option Agreement.

G. Pursuant to the Construction Agreement, KHOV intends to develop the Property, including the payment of that portion of the Authorized Fees identified in Appendix A (the “Builder Authorized Fees”). Neither KHOV nor the Land Bank intends to construct any of the Facilities that may be financed by the CFD.

H. The CFD will be authorized to levy special taxes upon the Property pursuant to the Amended and Restated Rate and Method of Apportionment of Special Tax for Improvement Area No. 2 (the “IA No. 2 RMA”).

I. The Master Developer previously entered into the Funding and Acquisition Agreement dated as of October 1, 2022, by and between the City and the Master Developer (the “Funding and Acquisition Agreement”). The Funding and Acquisition Agreement sets forth the conditions for the financing of authorized Facilities and Authorized Fees from the proceeds of bonds (“Bonds”) issued for the CFD or any Improvement Area, including Improvement Area No. 2 (the “IA No. 2 Bonds”). The Funding and Acquisition Agreement may be assigned to a builder of a planning area within the Project.

J. The Master Developer desires to assign the Assigned Rights (as defined in Section 1 below) and the Assigned Obligations (as defined in Section 6 below).

K. KHOV and the Land Bank desire to assume the Assigned Rights and the Assigned Obligations, as set forth herein.

L. The Parties have agreed to clarify and amend certain provisions of the Funding and Acquisition Agreement as it relates to Improvement Area No. 2 only, and this Assignment contains such amendments herein.

M. Capitalized terms used in this Assignment that are not otherwise defined shall have the meanings ascribed to such terms in the Funding and Acquisition Agreement.

NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, the Parties hereto hereby agree as follows:

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AGREEMENTS
Section 1: Assignment. The Master Developer hereby assigns to Builder all of the Master Developer’s rights and benefits in and under the Funding and Acquisition Agreement arising or accruing solely from the payment and reimbursement of the Builder Authorized Fees from the proceeds of the IA No. 2 Bonds, and the return of applicable Deposits (as defined in the Funding and Acquisition Agreement) by the City (collectively, the “Assigned Rights”) and the Assigned Obligations. The Parties understand and agree that except for the Assigned Rights and the Assigned Obligations, this Assignment shall not apply to any other Facilities or Authorized Fees that may be constructed or paid in connection with the development of any other property in the Project.

Section 2: Assumption. The Builder hereby assumes the Assigned Rights and the Assigned Obligations only.

Section 3: IA No. 2 Bonds.
(a) The Builder acknowledges and agrees that (i) pursuant to this Assignment, Builder may submit for credit toward or reimbursement from, as applicable, the proceeds of the IA No. 2 Bonds to finance the Builder Authorized Fees, (ii) the proceeds of Bonds from any improvement area other than Improvement Area No. 2 in the CFD (whether in existence today or as created in the future) or derived from any property identified as Future Annexation Area of the CFD (herein the "Non-IA No. 2 Sources") are not available to finance the Builder Authorized Fees unless the Master Developer and the Builder have entered into a separate assignment of the Funding and Acquisition Agreement regarding such Non-IA No. 2 Sources, and (iii) the Builder must comply with the provisions of the Funding and Acquisition Agreement in order for the Builder Authorized Fees to be eligible for financing from the proceeds of the IA No. 2 Bonds. (b) Master Developer and Builder acknowledge and agree that the net proceeds (i.e., after excluding administrative costs, costs of issuance, capitalized interest, and reserve fund amounts) from all series of IA No. 2 Bonds (herein, the “Net IA No. 2 Proceeds”) shall be allocated to, or for the benefit of, the Builder (the total allocations to Builder to be referred to herein as “Builder’s Proceeds”) and to Master Developer (the total allocations to, or for the benefit of, Master Developer to be referred to herein as “Master Developer’s Proceeds”) as follows: first, to Master Developer, the amount of the Net IA No. 2 Proceeds from any series of IA No. 2 Bonds up to the cumulative maximum amount across all issues of IA No. 2 Bonds of $6,592,905 for the purchase of City Acquisition Facilities; second, to Builder, out of the Net IA No. 2 Proceeds from any series of IA No. 2 Bonds the cumulative amount (across all issues of IA No. 2 Bonds) necessary to return the Deposits for, and prepay all of, the Builder Authorized Fees at the then-applicable per unit rates; and, third, any additional Net IA No. 2 Proceeds of the second or later series of Bonds shall be allocated to Master Developer for the purchase of City Acquisition Facilities.

Section 4: Amendments to the Funding and Acquisition Agreement. The following amendments are hereby made to the Funding and Acquisition Agreement, but only with respect to Improvement Area No. 2:
(a) Section 2 of the Funding and Acquisition Agreement is amended in full to read as follows:

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“Section 2. Payment of City Fees as Deposit. Any payment or deposit of City Fees before Special Taxes are received or proceeds of the IA No. 2 Bonds become available, including all City Fees paid prior to the execution of this Agreement, shall be held on deposit by the City in a separate account used exclusively for City Fees (the “Deposit Account”), and shall not be expended by the City, provided, however, earnings on the investment of funds in the Deposit Account shall be returned to the City. If any IA No. 2 Bonds have not been issued for a period of twenty-four (24) months from the date such City Fees are paid, then the City may use any funds remaining in the Deposit Account for its lawful purposes and such funds shall be deemed by the City as the payment of the Fees for the applicable parcels of the Property for which payment was made, provided, however, if the proceeds of IA No. 2 Bonds or special taxes become available subsequent to withdrawal by the City of amounts on deposit in the Deposit Account, the City shall use such proceeds of IA No. 2 Bonds or special taxes to replenish amounts expended from the Deposit Account so that the full amount of the City Fees paid by the Builder and requested to be reimbursed to the Builder may be financed by the proceeds of IA No. 2 Bonds or special taxes regardless of whether the City has previously expended such amounts.

Immediately upon the City receiving sufficient proceeds of the IA No. 2 Bonds in accordance with this Agreement, the City shall return to the Builder the applicable funds held in the Deposit Account, including any amounts replenished thereto by the City pursuant to the preceding paragraph.

Within Improvement Area No. 2, City Fees financed by the proceeds of IA No. 2 Bonds shall be funded in the following order of priority:

First, to the return of Deposits in the amount requested by the Builder in a written request; and
Second, to the prepayment of City Fees for the lots requested by the Builder in a written request, with a credit being provided by the City to the City Fees so prepaid on such designated lots.

Upon receipt of a written request for the application of IA No. 2 Bond proceeds, the City shall, within the then current City financial accounting payment cycle but in any event within thirty (30) business days of receipt of the payment request, cause the same to be paid by the Fiscal Agent under the applicable provisions of the applicable Fiscal Agent Agreement, to the extent of funds then on deposit in the Improvement Fund. Within fifteen (15) business days after receiving IA No. 2 Bond proceeds, the City shall return the applicable Deposits to the Builder.”
(b) Section 6(b) of the Funding and Acquisition Agreement is amended in full to read as follows:
“(b) Improvement Area Bond Proceeds. The proceeds of all Bonds of each Improvement Area and CFD shall be allocated and disbursed according to the requirements of the applicable Fiscal Agent Agreement but otherwise according to the following priorities:
(1) first, to fund all costs of issuance of the Bonds including (i) a reserve fund for the Bonds which does not exceed the amount permitted under the Code or the Act, (ii) capitalized interest for at least the period required to collect sufficient Special Taxes

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through the annual levy, or such amount as the City shall determine pursuant to the Financing District Policy, and in consultation with the Master Developer, (iii) the underwriter’s discount, (iv) the Reimbursable Expenses, and (v) bond counsel fees, disclosure counsel fees, financial advisor, appraisal and market absorption consultant fees, special tax consultant fees, fiscal agent or trustee fees and other typical and reasonable out-of-pocket expenses incurred by the City in connection with the issuance and sale of the Bonds;
(2) second, to reimburse, without interest, prior deposits paid by Master Developer to City pursuant to the Deposit Agreement and this Agreement related to formation of the CFDs and issuance of the Bonds; and
(3) third, as determined by the Master Developer and the Builder, to do one or both of the following in the priority determined by the Master Developer and the Builder: (A) to pay or reimburse the Master Developer, or merchant builder as designated prior to such issuance, the costs of the City Acquisition Facilities in the order requested by Master Developer but subject to the terms of this Agreement; and (B) as set forth in Section 2 herein, to pay or reimburse the Builder the costs of the City Construction Facilities paid previously that have not previously been reimbursed or to pay for City Construction Facilities that results in a prepayment of City Fees for designated parcels and provide a credit to the Builder for such City Fees on such designated parcels.” (c) Section 11 of the Funding and Acquisition Agreement is hereby amended in full to read as follows:
“Section 11. Indemnification.
(a) Master Developer shall promptly defend, indemnify and hold harmless the City, its officers, employees and agents, and each and every one of them, and the CFDs from any and all claims, actions, liability, damages, losses, expenses and costs arising out of Master Developer’s performance of, or failure to perform, its duties hereunder or by reason of, or arising out of, this Agreement; provided, however, nothing herein shall impose any liability on Master Developer with respect to any Public Facility constructed by Master Developer following the expiration of the one (1) year period after acceptancy of any such Public Facility.
(b) Builder shall promptly defend, indemnify and hold harmless the City, its officers, employees and agents, and each and every one of them, and the CFD from any and all claims, actions, liability, damages, losses, expenses and costs arising out of Builder’s performance of, or failure to perform, its duties hereunder or by reason of, or arising out of, the portion of this Agreement assigned to Builder. (c) Under no circumstances shall there be any joint and several liability between KHOV and the Land Bank, KHOV shall not be obligated to indemnify any party for the failure of the Land Bank under this Agreement, and the Land Bank shall not be obligated to indemnify any party for the failure of KHOV under this Agreement. (d) Under no circumstances shall there be any joint and several liability between the Builder and the Master Developer, the Builder shall not be obligated to indemnify any party for the failure of the Master Developer under this Agreement, and the Master

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Developer shall not be obligated to indemnify any party for the failure of the Builder under this Agreement.”
(d) Section 13(G) of the Funding and Acquisition Agreement is hereby amended in full to read as follows:
“G. Continuing Disclosure. Builder agrees to comply with all of its obligations under any continuing disclosure agreement executed by it in connection with the offering and sale of any of the IA No. 2 Bonds. Builder shall cooperate with underwriter for the Bonds in complying with the requirements of Rule 15c2-12 of the Securities and Exchange Commission in connection with the issuance and sale of the IA No. 2 Bonds.

Builder shall provide information to the City regarding its operations and financial condition as such information has been disclosed in the Official Statement. The City, in consultation with the underwriter of the IA No. 2 Bonds, may determine that some or all of such financial information will be included in the preliminary official statement and the final official statement for the IA No. 2 Bonds. For Improvement Area No. 2, if IA No. 2 Bonds are issued and the Builder owns property within Improvement Area No. 2 responsible for more than 20% of the Special Taxes levied in such fiscal year or a specific number of lots that equates to 20% of the Special Taxes (herein, a “Major Developer”), then Builder shall enter into a continuing disclosure undertaking, at the time of and in connection with the issuance and sale of the IA No. 2 Bonds, and that so long as it remains a Major Developer it will semi-annually, at the time specified in such undertaking, provide information regarding the status of development and residential and land sale activity within Improvement Area No. 2, within the semi-annual reports which Builder, or a dissemination agent that may be designated in such undertaking, will file with the repository which is identified by the Securities and Exchange Commission and any state information repository that may be designated for the State of California, as required by that rule. Copies of all such reports shall also be provided to the City and the underwriter of the IA No. 2 Bonds. Builder further acknowledges that it will be a Major Developer as long as it owns property within Improvement Area No. 2 that is responsible for the payment of annual Special Taxes which represent 20% or more of the annual debt service on the Bonds for Improvement Area No. 2 or a specific number of lots that equates to 20% of the Special Taxes. If Builder sells any portion of property within Improvement Area No. 2 to an entity and such entity will be a Major Developer, Builder shall require such entity to assume the continuing disclosure obligations of the Builder with respect to the property acquired by the entity (if IA No. 2 Bonds have already been issued or to enter into a continuing disclosure undertaking as provided in this section (if IA No. 2 Bonds have not yet been issued). Notwithstanding the foregoing, if at the time the IA No. 2 Bonds are issued the Option Agreement with the Land Bank remains outstanding, then only KHOV shall be a party to the continuing disclosure obligation, but the continuing disclosure obligation shall provide that if the Option Agreement is terminated, then the Land Bank shall assume the continuing disclosure obligation with respect to the property owned by the Land Bank so long as the property owned by the Land Bank is responsible for greater than 20% of the annual debt service on the Bonds for Improvement Area No. 2 (or the specific lot equivalent).”
(e) Section 18 of the Funding and Acquisition Agreement is hereby terminated in full and replaced with “[Reserved].”

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Section 5. Specific Provisions Not Assigned or Assumed. Except for the Assigned Rights and the Assigned Obligations, neither KHOV nor the Land Bank shall be bound in any way by any of the duties and obligations of the Master Developer in the Funding and Acquisition Agreement, including but not limited to, the following:
(i) Section 4 of the Funding and Acquisition Agreement. All advances associated with the issuance of the IA No. 2 Bonds will be paid by the Master Developer, unless otherwise agreed to by KHOV and the Master Developer.
(ii) Section 8 of the Funding and Acquisition Agreement. (iii) Section 9 of the Funding and Acquisition Agreement. (iv) Section 10 of the Funding and Acquisition Agreement.

Section 6. Specific Provisions. The Builder shall be bound in every way by all of the duties and obligations of the Master Developer in the Funding and Acquisition Agreement with respect to the Builder Authorized Fees, including, but not limited to, the following (collectively, the “Assigned Obligations”):
(i) The Builder shall provide the Letter of Credit (as defined in Section 17 of the Funding and Acquisition Agreement) if requested by the City in connection with the issuance of the IA No. 2 Bonds. Notwithstanding the foregoing, if at the time the IA No. 2 Bonds are issued the Option Agreement with the Land Bank remains outstanding, then only KHOV shall be required to post the Letter of Credit, but if the Option Agreement is terminated after KHOV posts a Letter of Credit, then the Land Bank shall promptly cause a Replacement Builder (who has been assigned and assumed the Assigned Rights and Assigned Obligations) to provide, a substitute Letter of Credit with respect to the property owned by the Land Bank (so that the Letter of Credit of KHOV is with respect only to the property it owns at that time).
(ii) The Builder shall be responsible to pay attorney’s fees, expert witness fees, court costs and other costs incurred by the prevailing party in prosecuting or defending such action or proceeding to the extent the Builder is named in any action or suit, as set forth in Section 22 of the Funding and Acquisition Agreement, but shall have no liability whatsoever for any attorney’s fees, expert witness fees, court costs and other costs in connection with any action for which the Builder is not named. (iii) The Builder shall be responsible to provide notices and maintain the records pursuant to Section 16 of the Funding and Acquisition Agreement with respect to the sale of any of the Property.

Section 7: Release of the Master Developer; Release of the Land Bank. The Master Developer is released from any of the duties and obligations under the Funding and Acquisition Agreement with respect to the Assigned Rights and Assigned Obligations. At the time that the Land Bank no longer owns any portion of the Property, the Land Bank shall be automatically released from any of the duties, liabilities, and obligations under the Funding and Acquisition Agreement with respect to the Assigned Rights and the Assigned Obligations.

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Section 8: Remaining Obligations. To the extent not assigned and assumed by this Assignment, the Master Developer shall remain obligated under, and entitled to the benefits of, the Funding and Acquisition Agreement with respect to the remaining Facilities and Authorized Fees. Notwithstanding any provision to the contrary in the Funding and Acquisition Agreement, only the Builder shall request the issuance of the IA No. 2 Bonds from the City.

Section 9: Notices. Any notice, payment or instrument required or permitted by this Assignment or by the Funding and Acquisition Agreement to be given or delivered to either party shall be deemed to have been received when personally delivered or one week following deposit of the same in any United States Post Office, registered or certified mail, postage prepaid, addressed as follows:

Master Developer: Olsen Ranch 212, LLC
629 Dufranc Avenue
Sebastopol, CA 95472
Attention: Kelly Olauson
Telephone: (562) 883-2465
Email: [email protected]
With a copy to: Danny Brose
31103 Rancho Viejo Road, #535
San Juan Capistrano, CA 92675
Telephone: (949) 874-7474
Email: [email protected]
With a copy to: Randall Coffee & Humphrey LLP
3200 Park Center Drive, Suite 950
Costa Mesa, CA 92626
Attention: Timothy L. Randall, Esq.

Telephone: (949) 757-1600
Email: [email protected]
KHOV: K. Hovnanian Homes
1260 Corona Pointe Court, Suite 301
Corona, California 92879
Attention: Adrian Peters
Telephone: (951) 751-5460
Email: [email protected]
With a copy to: K. Hovnanian Homes
8800 East Raintree Drive, Suite 300
Scottsdale, Arizona 85260
Attention: Chad Fuller
Telephone: 480-824-4200
Facsimile: 480-824-4191
Email: [email protected]

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With a copy to: K. Hovnanian California Region, Inc.
90 Matawan Road, 5th Floor
Matawan, New Jersey 07747
Attn: Peter Rinaldi
Telephone No.: (732) 383-2795
Email: [email protected]
With a copy to: K. Hovnanian Homes
1260 Corona Pointe Court, Suite 301
Corona, California 92879
Attention: Michelle Nguyen
Telephone: (714) 368-4506
Email: [email protected]
City: City of El Paso de Robles
________________
________________
________________
________________
Land Bank: Brookfield Holdings (Mirabella) LLC
250 Vesey Street, 15th Floor
New York, New York 10281
Attention: Andrew Brausa
Telephone No.: (212) 301-2393
Email: ___________
And Biskind, Hunt & Semro, PLC
8901 East Pima Center Parkway, Suite 225
Scottsdale, Arizona 85258
Attn: Geoffrey D. Semro, Esq.

Telephone No.: (602) 955-4433
Email: __________
Each Party may change its address or addresses for delivery of notice by delivering written notice of such change of address to the other Parties.

Section 10: Severability. If any part of this Assignment is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Assignment shall be given effect to the fullest extent reasonably possible.

Section 11: Successors and Assigns. This Assignment shall be binding upon and inure to the benefit of the successors and approved assigns of the Parties hereto. Any assignment of this Assignment shall be delivered to the City. None of the Master Developer, KHOV, or the Land Bank may assign this Assignment or the Funding and Acquisition Agreement with respect to Improvement Area No. 2 without the written consent of the other Parties.

Section 12: Waiver. Failure by a Party to insist upon the strict performance of any of the provisions of this Assignment by the other Parties, or the failure by a Party to exercise

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its rights upon the default of the other Parties, shall not constitute a waiver of such Party‘s right to insist and demand strict compliance by the other Parties with the terms of this Assignment thereafter.

Section 13: Counterparts. This Assignment may be executed in counterparts, each of which shall be deemed an original.

Section 14: Amendments. Amendments to this Assignment shall be made only by written instrument executed by each of the Parties hereto.

Section 15: Governing Law. The provisions of this Assignment shall be governed by the laws of the State of California applicable to contracts made and performed in the State of California.
[Remainder of Page Intentionally Blank]

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11 #504434973
IN WITNESS WHEREOF, the Parties have executed this Assignment as of the day and year first-above written.
"MASTER DEVELOPER": "BUILDER":

OLSEN RANCH 212, LLC,
a California limited liability company
By: ___________________________
Name: Danny Brose
Title: Manager
By: ___________________________
Name: Kelly Olauson
Title: Manager
By: ___________________________
Name: Gary Hamro
Title: Manager
K. HOVNANIAN COMMUNITIES, INC.,
a California corporation
By: ________________________________
Name: Rhonda Brown
Title: Division Controller

CITY OF EL PASO DE ROBLES
________________________
ATTEST:
________________________

BROOKFIELD HOLDINGS (MIRABELLA) LLC,
a Delaware limited liability company
By: _________________________
Name: ______________________
Title: _______________________

A-1

APPENDIX A

BUILDER AUTHORIZED FEES
City Construction Facilities(1) Per Unit Estimated Total(1) Transportation $1,466 $1,438,146
Park and Recreation Fees $227 $222,687
Police $91 $89,271
Fire $1,245 $1,221,345
General Governmental $3,606 $3,537,486
Library $1,163 $1,140,903
Water Connection Fees (3/4" Meter) $19,066 $18,703,746
Water Meter Installation Fee (3/4" Meter) $219 $214,839 Wastewater Facility Fee $8,093 $7,939,233
Total Estimated DIF(1) $35,176 $34,507,656
(1) The City development impact fees required to be paid are subject to the provisions of the Development Agreement and, as such, the amounts above are preliminary and subject to change. The actual amount of the development impact fees or any other fee paid for capital improvements are eligible to be financed with the proceeds of the IA No. 2 Bonds.

1 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities)

AMENDED AND RESTATED RATE AND METHOD OF

APPORTIONMENT OF SPECIAL TAXES
IMPROVEMENT AREA NO. 2 OF

CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2022-1N
(OLSEN/SOUTH CHANDLER RANCH - FACILITIES)
A Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels in Improvement Area No. 2 ("IA No. 2") of City of Paso Robles Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities) ("CFD No. 2022-1N (IA No. 2)") and collected each Fiscal Year commencing in Fiscal Year 2023-2024-2025, in an amount determined by the Council, through the application of this Rate and Method of Apportionment as described below. All of the real property in CFD No. 2022-1N (IA No. 2), unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A DEFINITIONS
The terms hereinafter set forth have the following meanings:
"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, parcel map, condominium plan, or other recorded County parcel map.
"Act" means 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.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2022-1N (IA No. 2): the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2022-1N (IA No. 2) or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022-1N (IA No. 2) or any designee thereof of complying with City, CFD No. 2022-1N (IA No. 2), major property owner, or obligated persons disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2022-1N (IA No. 2), or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2022-1N (IA No. 2) for any other administrative purposes of CFD No. 2022-1N (IA No. 2), including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure, or otherwise addressing the disposition of delinquent Special Taxes.

Attachment 3

2 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) Attachment 3

3 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) "Assessor’s Parcel" means any real property to which an Assessor’s Parcel Number is assigned as shown on an Assessor’s Parcel Map.
"Assessor’s Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C below. “Authorized Facilities” means the facilities authorized to be financed by CFD No. 2022-1N.
"Backup Special Tax" means the Special Tax of that name described in Section C below.
"Bonds" means any bonds or other debt as defined in Section 53317(d) of the Act, whether in one or more series, issued by CFD No. 2022-1N for IA No. 2 under the Act. "Boundary Map" means a recorded map which indicates the boundaries of CFD No. 2022-1N (IA No. 2).
"Building Permit" means the first legal document issued by the City giving official permission for the construction of a building on an Assessor’s Parcel. For purposes of this definition and application of the Special Tax, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the CFD Administrator.
"Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes.
“CFD Formation” means the date on which the Council approved documents to form CFD No. 2022-1N.
"CFD No. 2022-1N" means the City of Paso Robles Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch – Facilities).
“City” means the City of Paso Robles.
"Council" means the City Council.
"County" means the County of San Luis Obispo.
"Developed Property" means, for each Fiscal Year, all Taxable Property located within a Final Map that was recorded as of January 1 of the prior Fiscal Year, for which a Building Permit was issued prior to May 1 of the prior Fiscal Year. “Dwelling Unit” means one residential unit of any configuration, including, but not limited to, a single-family attached or detached dwelling, condominium, mobile home, or otherwise, excluding hotels and motels. A casita or accessory dwelling unit (“ADU”) of any configuration shall not be counted as a separate Dwelling Unit for purposes of this Rate and Method of Apportionment.

Attachment 3

4 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) “Exempt Welfare Exemption Property” means, for each Fiscal Year, an Assessor’s Parcel that, prior to the issuance of Bonds, received a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code (or any successor statute), as indicated in the County’s assessor’s roll finalized as of January 1 of the previous Fiscal Year, and is exempt from the Special Tax pursuant to Section 53340(c) of the Act.
"Final Map" means (i) a final map, or portion thereof, approved by the County pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) that creates individual lots or parcels for which Building Permits may be issued without further subdivision, or (ii) for condominiums, a final map approved by the County and a condominium plan recorded pursuant to California Civil Code Section 4285 creating such individual lots or parcels.
"Final Mapped Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied; and (ii) for which a Building Permit has not been issued on or before May 1 preceding the Fiscal Year in which the Special Tax is being levied.
"Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area No. 2" or "IA No. 2" means Improvement Area No. 2 of CFD No. 2022-1N.
"Indenture" means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time.
"Land Use Class" means any of the categories listed in Table 1 herein. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel within CFD No. 2022-1N (IA No. 2).
“Non-Residential Floor Area” means the total building square footage of the nonresidential building(s) located on an Assessor’s Parcel, measured from outside wall to outside wall, not including space devoted to stairwells, public restrooms, lighted courts, vehicle parking and areas incident thereto, and mechanical equipment incidental to the operation of such building. The determination of Non-Residential Floor Area shall be made by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or to the appropriate records kept by the City, as reasonably determined by the CFD Administrator.
"Non-Residential Property" means all Assessor's Parcels of Taxable Property for which a Building Permit(s) was issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax Attachment 3

5 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) obligation in full for an Assessor’s Parcel, as described in Section G.1. “Property Owner’s Association” means, collectively, any property owner association or homeowners association, including any master or sub-association, created for CFD No. 2022-1N (IA No. 2).
"Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2022-1N (IA No. 2) that was owned by a Property Owner Association, as of January 1 of the prior Fiscal Year. "Proportionately" means, for Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. For Taxable Property Owner Association Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Taxable Property Owner Association Property. For Taxable Public Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Taxable Public Property.
"Public Property" means, for each Fiscal Year, any property within CFD No. 2022-1N (IA No. 2) that is owned by, irrevocably offered for dedication to, or dedicated to the federal government, the State, the City, or any other public agency as of June 30 of the prior Fiscal Year; provided however that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by, irrevocably offered for dedication to, or dedicated to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. “Rate and Method of Apportionment” means this Amended and Restated Rate and Method of Apportionment of Special Taxes, City of Paso Robles, Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities). "Residential Floor Area" means all of the square footage of living area within the perimeter of a Dwelling Unit, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The CFD Administrator shall determine the Residential Floor Area based upon the Building Permit(s) issued for such Dwelling Unit.
"Residential Property" means Developed Property, for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. "Special Tax" means a special tax levied in any Fiscal Year to pay the Special Tax Requirement.
“Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay debt service on all Outstanding Bonds; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds to the extent such establishment or Attachment 3

6 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) replenishment has not been included in a computation of the Special Tax Requirement in a previous Fiscal Year; (v) pay directly for the acquisition or construction of Authorized Facilities to the extent that inclusion of such amount does not increase the Special Tax levy on Final Mapped Property or Undeveloped Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the historical delinquency rate for CFD No. 2022-1N (IA No. 2) as determined by the CFD Administrator; less (vii) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. "State" means the State of California.
"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 2022-1N (IA No. 2) which are not exempt from the Special Tax pursuant to law or Section E below.
"Taxable Property Owner Association Property" means all Assessor’s Parcels of Property Owner Association Property that are not exempt pursuant to Section E below.
"Taxable Public Property" means all Assessor’s Parcels of Public Property that are not exempt pursuant to Section E below.
“Total Floor Area” means the sum of the Residential Floor Area and the NonResidential Floor Area located on an Assessor’s Parcel. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property” means all Assessor’s Parcels of Taxable Property which are not Developed Property, Final Mapped Property, Public Property, or Property Owner’s Association Property.

B ASSIGNMENT TO LAND USE CLASSES
Each Fiscal Year, beginning with Fiscal Year 2023-2024-2025, each Assessor’s Parcel of Taxable Property shall be classified as Developed Property, Final Mapped Property, Undeveloped Property, Public Property and/or Property Owner’s Association Property.

Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non-Residential Property. Each Assessor’s Parcel of Residential Property shall be further categorized into Land Use Classes based on its Residential Floor Area and assigned the appropriate Assigned Special Tax.

The determination of the Residential Floor Area shall be made by reference to the original Building Permit issued for the Dwelling Unit of an Assessor’s Parcel. The Building Permit may include any subsequent document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property in each year will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses in each year.

C MAXIMUM SPECIAL TAX RATE
C.1 Developed Property
The Maximum Special Tax for each Assessor’s Parcel classified as Developed Property Attachment 3

7 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax.

Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Residential Property or Non-Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.

Table 1: Assigned Special Tax for Developed Property
Land Use
Class
Description Assigned Special Tax
1 RESIDENTIAL PROPERTY (>= 32,300 SF) $6,675588 PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (3,100 - 3,299 SF) $6,501 PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (2,900 - 3,099 SF) $6,326 PER DWELLING UNIT 42 RESIDENTIAL PROPERTY (2,700200 -
2,899299 SF)
$6,152391 PER DWELLING
UNIT 5 RESIDENTIAL PROPERTY (2,500 - 2,699 SF) $5,977 PER DWELLING UNIT 63 RESIDENTIAL PROPERTY (2,300100 - 2,499199
SF)
$5,6666,076 PER DWELLING
UNIT 74 RESIDENTIAL PROPERTY (2,100000 -
2,299099 SF)
$5,278760 PER DWELLING
UNIT 85 RESIDENTIAL PROPERTY (1,900 - 2,0991,999
SF)
$5,162563 PER DWELLING
UNIT
96 RESIDENTIAL PROPERTY (< 1,900 SF) $4,9605,248 PER DWELLING UNIT
107 NON-RESIDENTIAL PROPERTY $32,64234,020 PER ACRE
Backup Special Tax
The Backup Special Tax for each Assessor’s Parcel of Residential Property in a Final Map shall be computed by multiplying the Acreage of all Taxable Property (excluding Acreage associated with current or expected Non-Residential Property, Taxable Public Property, or Taxable Property Owner Association Property, if any) in such Final Map by $32,64234,020, and dividing the product by the number of such Assessor’s Parcels (i.e., the number of residential lots) in such Final Map.

Notwithstanding the foregoing, if all or any portion of a Final Map is subsequently changed or modified, then the Backup Special Tax for each Assessor’s Parcel of Residential Property in such Final Map, or the portion thereof that is changed or modified, shall be a rate per Acre calculated as follows:

1. Determine the total Backup Special Taxes anticipated to apply to the changed or modified portion of the Final Map prior to the change or modification.

2. Divide the amount determined pursuant to paragraph 1 above by the total Acreage of Residential Property excluding Non-Residential Property, Taxable Public Property, and Taxable Property Owner Association Property which is ultimately expected to exist in such changed or modified Final Map area, as reasonably determined by the CFD Administrator.

3. The result is the Backup Special Tax per Acre which shall be applicable to all Assessor's Parcels of Residential Property in such changed or modified Final Map.

Attachment 3

8 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) C.2 Final Mapped Property
The Maximum Special Tax for each Assessor’s Parcel of Final Mapped Property expected to be classified as Residential Property shall be the Backup Special Tax computed pursuant to Section C.1.b above.

C.3 Undeveloped Property, Taxable Property Owner Association Property, and/or Taxable Public Property.

The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Property Owner Association Property, or Taxable Public Property shall be $32,64234,020 per Acre.

C.4 Multiple Land Use Classes
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. The annual Maximum Special Taxes levied on an Assessor’s Parcel shall be the sum of the Maximum Special Taxes for all Land Use Classes located on that Assessor’s Parcel. If an Assessor’s Parcel of Developed Property includes Non-Residential Property, the Acreage to be assigned to such property for purposes of establishing the Special Tax shall be an amount proportional to the Total Floor Area associated with Non-Residential Property, as applicable. Furthermore, for a condominium plan, if only a portion of its Building Permits have been issued, the remaining portion of the condominium plan shall be considered Final Mapped Property. The CFD Administrator’s allocation to each type of property shall be final.

D APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2023-2024-2025 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the total Special Tax levy equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:

First: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement.

Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Final Mapped Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Third: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to 100% of the Attachment 3

9 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) Maximum Special Tax as needed to satisfy the Special Tax Requirement.

Fifth: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Property Owner Association Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Sixth: If additional moneys are needed to satisfy the Special Tax Requirement after the first five steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than 10% above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.

E EXEMPTIONS
No Special Tax shall be levied on Property Owner Association Property or Public Property in CFD No. 2022-1N (IA No. 2), provided that an Assessor’s Parcel shall not be exempt and shall be classified as Taxable Property Owner Association Property and Taxable Public Property if exempting such property would reduce the sum of all Taxable Property to less than 33.4230.1 Acres. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which such Assessor’s Parcels or portions thereof in CFD No. 2022- 1N (IA No. 2) become Public Property or Property Owner Association Property. However, should an Assessor’s Parcel no longer be classified as Public Property or Property Owner Association Property, it will, from that point forward, be subject to the Special Tax.

Property Owner Association Property or Public Property that is not exempt from the Special Tax under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fifth step and sixth step in Section D above, respectively, at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property or Taxable Public Property.

In addition, no Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Exempt Welfare Exemption Property.

F APPEALS AND INTERPRETATIONS
Any taxpayer may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes.

During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax on the appellant’s property.

If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the clerk of the Council, provided that the appellant is current Attachment 3

10 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) in his/her payments of Special Taxes. The second appeal must specify the reasons for the disagreement with the CFD Administrator’s determination.

Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.

G PREPAYMENT
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $13,621,88814,400,000 or such lower amount (i) authorized by the Council to provide the public facilities to be funded under CFD No. 2022-1N (IA No. 2), or (ii) determined by the Council concurrently with a covenant that it will not issue any more Bonds to be supported by the Special Tax levied under this Rate and Method of Apportionment.
“Construction Fund” means a fund held by the Trustee to fund CFD Public Facilities. “Future Facilities Cost” means the CFD Public Facilities minus public facility costs previously funded, or that can be funded from funds in the Construction Fund. “Outstanding Bonds” means all previously issued Bonds secured by the levy of the Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of the Special Tax.

G.1 Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued; and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property that are not exempt pursuant to Section E.

The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 2022-1N (IA No. 2) in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such Prepayment Amount.

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

Prepayment Amount
Bond Redemption Amount
Attachment 3

11 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Special Tax Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:

1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.

2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued, Public Property or Property Owner’s Association Property to be prepaid, compute the Maximum Special Tax for the Assessor’s Parcel.

3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied at the Maximum Special Tax at build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid.

4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).

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

6. Determine the Future Facilities Cost.

7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel, which amount shall not be less than $0 (the “Future Facilities Amount”).

8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from the Prepayment Amount.

Attachment 3

12 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities)

9. Determine the Special Tax levied on the Assessor’s Parcel in the current Fiscal Year which has not yet been paid.

10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.

11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).

12. Verify the administrative fees and expenses of CFD No. 2022-1N (IA No. 2), including the cost of computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).

13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of:
(a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the Prepayment Amount, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the Prepayment Amount from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.

14. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest payment following the current Fiscal Year, the capitalized interest credit (the “Capitalized Interest Credit”) shall be calculated by multiplying the quotient derived pursuant to paragraph 3 by the expected balance in the capitalized interest account after such first interest payment.

15. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit, less the Capitalized Interest Credit.

16. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by CFD No. 2022-1N (IA No. 2).

The Prepayment Amount may not be sufficient to redeem an aggregate principal amount of Outstanding Bonds which is equally divisible by $5,000. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.

As a result of the payment of the current Fiscal Year’s Special Tax levy as determined Attachment 3

13 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.

G.2 Prepayment in Part
The Maximum Special Tax obligation for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued; and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property that are not exempt pursuant to Section E, may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section G.1 shall be modified as provided by the following formula:

PP = ((PE –A) x F) +A
These terms have the following meaning:

PP = The partial prepayment;
PE = The Prepayment Amount calculated according to Section G.1; F = The percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax obligation; and
A = The Administrative Fees and Expenses determined pursuant to Section G.1.

The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 2022-1N (IA No. 2) in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment for the Assessor’s Parcel. A Partial Prepayment must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.

With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 16 of Section G.1, and (ii) indicate in the records of Attachment 3

14 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) CFD No. 2022-1N (IA No. 2) that there has been a Partial Prepayment for the Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of Special Tax obligation will continue on the Assessor’s Parcel pursuant to Section D.

H SPECIAL TAX REDUCTION
The following definitions apply to this Section H:
"Base Price" means, with respect to the Dwelling Units in each Plan Type, as of the date of the applicable Price Point Study, the base price of such Dwelling Units, estimated by the Price Point Consultant as of such date, based upon their actual or expected characteristics, such as living area, view, or lot size, but excluding potential appreciation or premiums, options or upgrades.
"Plan Type" means a discrete residential plan type generally consisting of residential Dwelling Units that share a common product type (e.g., detached, attached) and that have nearly identical amounts of living area, that is constructed or expected to be constructed within CFD No. 2022-1N (IA No. 2) as identified in the Price Point Study. "Price Point Consultant" means any consultant or firm of such consultants selected by CFD No. 2022-1N (IA No. 2) that (a) has substantial experience in performing price point studies or otherwise estimating or confirming pricing for Dwelling Units within community facilities districts, (b) is well versed in analyzing economic and real estate data that relates to the pricing of Dwelling Units in community facilities districts, (c) is independent and not under the control of CFD No. 2022-1N (IA No. 2), the City, or the developer, (d) does not have any substantial interest, direct or indirect, with or in CFD No. 2022-1N (IA No. 2), the City, any owner of real property in CFD No. 2022- 1N (IA No. 2), or any real property in CFD No. 2022-1N (IA No. 2), and (e) is not connected with CFD No. 2022-1N (IA No. 2) or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 2022-1N (IA No. 2) or the County.
"Price Point Study" means a price point study or a letter updating a previous price point study, which (a) has been prepared by the Price Point Consultant, (b) sets forth the Plan Types constructed or expected to be constructed within CFD No. 2022-1N (IA No. 2), (c) sets forth the estimated number of constructed and expected Dwelling Units for each Plan Type, (d) sets forth estimates of the Base Price for each Plan Type and (e) uses a date for establishing such Base Prices that is no earlier than 30 days prior to the date the Price Point Study is delivered to the CFD Administrator pursuant to Section H herein.
"Total Effective Tax Rate" means, for a Plan Type, (a) the Total Tax Burden for such Plan Type divided by (b) the Base Price for such Plan Type, converted to a percentage. "Total Effective Tax Rate Limit" means, 1.90%.
"Total Tax Burden” means, with respect to a Plan Type, for the Fiscal Year for which the calculation is being performed, the sum of the Assigned Special Tax and estimated ad valorem property taxes, special assessments, special taxes for any overlapping community facilities districts, and any other governmental taxes, fees and charges levied or imposed on Dwelling Units of such Plan Type in CFD No. 2022- 1N (IA No. 2) in such Fiscal Year or that would have been levied on all such Dwelling Attachment 3

15 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) Units had these Dwelling Units been subject to such levies (excluding homeowner’s association dues and Property Assessed Clean Energy (“PACE”) charges imposed pursuant to AB 811 or SB 555, that are levied on individual Assessor’s Parcels, or any other charges applicable to the Assessor’s Parcels initiated by the homeowner after the close of escrow).

Prior to the issuance of a second series of Bonds (or the first series of Bonds, if such series is the final series of Bonds, as determined by the City), the following steps shall be taken for each Land Use Class of for-sale Residential Property in CFD No. 2022- 1N (IA No. 2) for evaluating the Special Tax:

Step No.:

1. At least 30 days prior to the issuance of Bonds, a Price Point Study shall be completed and delivered to the CFD Administrator.

2. The CFD Administrator shall determine the Total Tax Burden and Total Effective Tax Rate for each Plan Type in CFD No. 2022-1N (IA No. 2).

3. Separately, for each Land Use Class of for-sale Residential Property in CFD No. 2022-1N (IA No. 2), the CFD Administrator shall determine whether or not the Total Effective Tax Rate for all Plan Types in a Land Use Class is less than or equal to the Total Effective Tax Rate Limit.
a. If the Total Effective Tax Rate for all Plan Types in a Land Use Class in CFD No. 2022-1N (IA No. 2) is less than or equal to the Total Effective Tax Rate Limit, then there shall be no reduction in Special Tax for such Land Use Class in CFD No. 2022-1N (IA No. 2).
b. If the Total Effective Tax Rate for any Plan Type in a Land Use Class in CFD No. 2022-1N (IA No. 2) is greater than the Total Effective Tax Rate Limit , the CFD Administrator shall calculate a revised Assigned Special Tax for that Land Use Class in CFD No. 2022-1N (IA No. 2), such that the revised Assigned Special Tax does not cause the Total Effective Tax Rate for any Plan Type in such Land Use Class to exceed the Total Effective Tax Rate Limit.

4. If the Assigned Special Tax for any Land Use Class is revised pursuant to step

3.b. above, the CFD Administrator shall also prepare and execute a Certificate to Amend the Special Tax substantially in the form of Exhibit “A” hereto and shall deliver such Certificate to Amend the Special Tax to CFD No. 2022-1N (IA No. 2). The Certificate to Amend the Special Tax shall be completed for all Land Use Classes and shall set forth, as applicable, either (i) the reduced Assigned Special Tax for a Land Use Class as calculated pursuant to step 3.b., or (ii) the Assigned Special Tax as identified in Table 1 of Section C for a Land Use Class that was not revised as determined pursuant to step 3.a. A reduction to the Assigned Special Tax in one Land Use Class shall not require a reduction in any other Land Use Class.

5. If the anticipated date of issuance of Bonds is within 180 days of the date of receipt of the Price Point Study by the CFD Administrator, CFD No. 2022-1N (IA No. 2) shall execute the acknowledgement on such Certificate to Amend the Special Tax dated as of the closing date of such Bonds, and upon the closing of such Bonds, the Assigned Special Tax for each Land Use Class shall Attachment 3

16 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) be as set forth in such Certificate to Amend the Special Tax. If the date of issuance of Bonds is not within 180 days of the date of receipt of the Price Point Study by the CFD Administrator, such Certificate to Amend the Special Tax shall not be acknowledged by CFD No. 2022-1N (IA No. 2) and shall, as of such date, be void and of no further force and effect. In such case, if subsequently Bonds are expected to be issued, at least 30 days prior to that expected date, steps 1 through 5 of this section shall be performed based on a new Price Point Study.

6. After the execution by CFD No. 2022-1N (IA No. 2) of the acknowledgement on the Certificate to Amend the Special Tax, CFD No. 2022-1N (IA No. 2) shall cause to be recorded in the records of the County Recorder an Amended Notice of Special Tax Lien for CFD No. 2022-1N (IA No. 2) reflecting the Assigned Special Tax for CFD No. 2022-1N (IA No. 2) set forth in such Certificate to Amend the Special Tax.

7. If the Assigned Special Tax is not required to be changed for any Land Use Class based on the calculations performed under step 3 above, there shall be no reduction in the Assigned Special Tax and no Certificate to Amend the Special Tax shall be required.

I MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2022-1N (IA No. 2) may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.

J TERM OF SPECIAL TAX
The Special Taxes shall be levied until the final series of Bonds have matured, provided that the Special Taxes shall not be levied after Fiscal Year 2072-2073-2074. The Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that all required interest and principal payments on the Bonds have been paid, no delinquent Special Taxes remain uncollected, and the City has covenanted that it will not issue any more Bonds (other than refunding Bonds) to be supported by Special Taxes levied under this Rate and Method of Apportionment as described in Section D.

Attachment 3

A-1 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities)

EXHIBIT A

CERTIFICATE TO AMEND THE SPECIAL TAX
IMPROVEMENT AREA NO. 2

OF THE CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2022-1N (OLSEN/SOUTH

CHANDLER RANCH - FACILITIES)

TAX REDUCTION CERTIFICATE

1. Pursuant to Section H of the Rate and Method of Apportionment, as attached to the Notice of Special Tax Lien, recorded in the Official Records of the County of San Luis Obispo as Instrument No. XXXXXX on MM/DD/YYYY, the City of Paso Robles (the “City”) hereby reduces the Assigned Special Taxes for Developed Property within CFD No. 2022- 1N (IA No. 2) set forth in Table 1 of the Rate and Method of Apportionment for CFD No. 2022-1N (IA No. 2).

2. The calculations made pursuant to Section H were based upon a Price Point Study that was received by the CFD Administrator on _________________.

3. The information in Table 1, relating to the Assigned Special Tax for Developed Property within CFD No. 2022-1N (IA No. 2) shall be amended and restated in full as follows:

Attachment 3

A-2 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) Table A-1: Assigned Special Tax for Developed Property
Land Use
Class
Residential Floor Area Assigned Special Tax
1 RESIDENTIAL PROPERTY (>= 32,300 SF) [$ ] PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (3,100 - 3,299 SF) [$ ] PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (2,900 - 3,099 SF) [$ ] PER DWELLING UNIT 42 RESIDENTIAL PROPERTY (2,700200 -
2,899299 SF)
[$ ] PER DWELLING UNIT
53 RESIDENTIAL PROPERTY (2,500100 -
2,699199 SF)
[$ ] PER DWELLING UNIT
64 RESIDENTIAL PROPERTY (2,300000 -
2,499099 SF)
[$ ] PER DWELLING UNIT
7 RESIDENTIAL PROPERTY (2,100 - 2,299 SF) [$ ] PER DWELLING UNIT 85 RESIDENTIAL PROPERTY (1,900 -
2,0991,999 SF)
[$ ] PER DWELLING UNIT
96 RESIDENTIAL PROPERTY (< 1,900 SF) [$ ] PER DWELLING UNIT 107 NON-RESIDENTIAL PROPERTY $32,64234,020 PER ACRE

4. Upon execution of the certificate by the City and CFD No. 2022-1N (IA No. 2), the City shall cause an amended Notice of Special Tax Lien for CFD No. 2022-1N (IA No. 2) to be recorded reflecting the modifications set forth herein.

Submitted:

CFD ADMINISTRATOR
By: Date:

By execution hereof, the undersigned acknowledges, on behalf of CFD No. 2022-1N (IA No. 2), receipt of this certificate and modification of the Rate and Method of Apportionment as set forth in this certificate.

Improvement Area No. 2 of Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities) of the City of Paso Robles.

By: Date as of:

Attachment 3

Council Agenda Report
From: Ryan Cornell, Administrative Services Director
Subject: Quarterly Financial and Budget Report Update and Amendments CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Date: December 3, 2024
Facts

1. In accordance with the Council’s adopted fiscal policies, quarterly, but no less than semi-annually, there will be a comprehensive review of the operations in comparison to the existing budget.

Projections of revenues and expenditures through the end of the fiscal year (FY) will be prepared and reviewed by the City Manager and the Director of Administrative Services with a report and presentation to the City Council.

2. This report provides an overview of the City’s projected financial position based on actual transactions incurred for FY’s 2023-24 and 2024-25. It should be noted that financial information provided for FY 2023-24 has not been audited. As such, additional adjustment may be required; however, staff does not anticipate that there will be significant changes.

3. On June 18, 2024, City Council adopted the Operating and Capital Budget for FY’s 2024-25 and 2025-

26. Several assumptions and predictions were used in the budget process; therefore, it is important to revisit assumptions to ensure accuracy and solvency.

4. The Report also provides an opportunity to review past actions and update as needed.

Options

1. Take no action;

2. Receive and file the report and approve the proposed appropriations;

3. Provide alternative direction to staff.

Analysis and Conclusions
This is the first financial report since the budget was adopted in June 2024. It is prudent to examine the projections and assumptions used during the budget process and to ensure they are still accurate. As such, this financial report provides an opportunity to examine the financial activity of the City for the first part of FY 2024-25. As with previous financial reports, the focus of this report is on the General Fund, the main operating account for the City, as well as Capital Improvement Program (CIP) Funds, including street and road repair.

The budget for FY 2024-25 and 2025-26 was approved prior to the close of the fiscal year because State law requires budgets to be adopted prior to the beginning of the year. As such, there are estimates and assumptions made to predict financial activity that occurred after the budget, but before the close of the fiscal year. The General Fund had estimated that ending unappropriated reserves would total $19.4

million on June 30, 2024. Actual unappropriated reserves on June 30, 2024, totaled $19.7 million, a positive impact to City finances of approximately $250,000 (this represents less than 1% of the total General Fund budget). In other words, end of year estimates used during the budget process were accurate and no additional adjustments are warranted.

As discussed throughout the budget process, the City’s General Fund budget is balanced with revenues estimated to be $55.1 million and operating expenditures of $53.0 million at the end of the fiscal year; there is an additional $8.5 million appropriated to fund one-time capital projects. Since then, revenues are now estimated to be approximately 1.4% more than originally estimated and operating expenditures are tracking to be approximately 95% of appropriations. This further validates the accuracy of the budget.

The financial activity of the General Fund is summarized below:

Amended
Budget Q1 Actual
Estimated
End of Year Variance
% Rec’d/
Exp’d
Sales Tax $18,685,500 $1,561,411 $18,597,885 (87,615) 99.5% Property Tax 14,915,400 646,322 15,131,556 216,156 101.4% TOT 10,522,000 2,043,347 10,376,184 (145,816) 98.6%
All Other Revenues 11,512,297 3,728,794 12,314,470 802,173 107.0% Total Revenues 55,635,197 7,979,874 56,420,095 784,898 101.4% City Manager’s Office 2,643,200 367,315 2,587,967 55,233 97.9% Administrative
Services 3,098,800 605,872 2,883,705 215,095 93.1%
Police Department 13,482,800 2,732,975 13,326,408 156,392 98.8% Emergency Services 8,500,189 1,787,825 8,371,576 128,613 98.5% Public Works 8,149,778 1,313,620 7,281,258 868,520 89.3% Community Services 6,428,400 1,415,718 6,271,981 156,419 97.6% Community
Development 5,609,800 742,834 4,250,804 1,358,996 75.8% Capital Projects 8,234,400 - 8,234,400 - 100.0%
Internal Service Funds 6,549,600 - 6,549,600 - 100.0%
All Other 262,500 - - 262,500 0.0%
Total Expenditures 62,959,467 8,966,159 59,757,699 3,201,768 94.9% Originally Estimated
End of Year Reserves 15,359,047
Updated Estimated
End of Year Reserves 17,644,342
Variance 1,662,166
General Fund Revenues
City staff received its financial report for sales tax activity for the second quarter 2024. The City’s receipts from April through June were 1.9% higher than the same period in 2023, however, after adjusting for reporting anomalies, actual sales rose by 0.9%. The flatting of sales tax revenues was anticipated during the budget process as there was an unusual spending surge that occurred coming out of the COVID-19 pandemic. On the downside, new car sales were lower as consumers grew hesitant due to high prices and tight credit conditions. Excluding anomalies, taxable sales across San Luis Obispo County declined by 0.5%, while the Central Coast region saw a modest 0.5% increase over the same period. Halfway through the

current calendar year, revenue trends remain slightly lower than a year ago overall. Although the Federal Reserve recently reduced the Fed Funds Rate helping temper the cost of financing, personal consumption forecasts remain insipid through the remainder of 2024. Consumers are more likely to wait for greater improvement of household economic conditions before extending themselves again, inspiring the next sales tax growth cycle.

Property taxes continue to be a stable revenue source as the City realized a 6.3% change in assessed valuation citywide, whereas the County saw a 4.8% change. The largest increase this past year was due to the construction of Arrive Paso which increased by $30.7 million. The second largest increased valuation by $9 million due to the continued construction of the Olsen Ranch/South Chandler Specific Plan. The City can expect to see significant year-over-year property tax growth as residential development continues to grow. As a result, updated property tax revenues are now estimated to be approximately $200,000 more than expected, the largest reason for the positive revenue results.

That all being said, through the first half of the 2024 calendar year, counties are still experiencing declines in the number of recorded sales from 2023. Home sales pulled back in June as interest rates remained high through the end of the second quarter. Despite this, all major California regions experienced a moderate increase in their median sale prices from a year ago in June. The Central Coast posted the biggest sales jump on a year-over-year basis, increasing 8.9% from a year ago. The Far North (7.6%) and Southern California (7.4%) were a close second and third, respectively, and were followed by the San Francisco Bay Area (5.8%) and the Central Valley (4.8%). The median sale price of Paso Robles detached single-family homes from January through September 2024 was $751,500, an increase of $71,500 (10.5%) from 2023's median price.

American Rescue Plan Act of 2021
On September 7, 2021, the City Council approved the budget allocation for the funds received by the City by the American Rescue Plan Act of 2021 (ARPA), which was part of the federal stimulus package in response to the COVID-19 pandemic. The City received approximately $5.5 million which needs to be obligated no later than December 31, 2024, and expended by December 31, 2026. Since 2021, the ARPA financial activity is summarized as follows:

Current
Budget
Actual
Expended-toDate Obligated
Remaining
Unspent/
Unobligated
ECHO $ 500,000 $ 444,000 $ 56,000 $ -
Sherwood Park Upgrades 2,879,463 175,435 2,704,028 -
South Vine Street Bridge 2,120,950 923,632 - 1,197,318
Total $ 5,500,413 $ 1,543,067 $ 2,760,028 $ 1,197,318
As shown above, the City has approximately $1.2 million of unobligated ARPA funding that needs to be expended or, at a minimum, obligated by the end of the year or risk losing these grant dollars. In accordance with the APRA grant requirements, the City’s entire ARPA allocation is categorized as “revenue loss”, which means the City may use these funds “for any governmental purposes.” As such, staff recommends redirecting ARPA funds away from the South Vine Street Bridge project (because that construction contract will not be obligated until the second quarter 2025) and direct them towards the City’s general liability premiums. This will result in a reduction in the General Fund’s contribution towards general liability insurance, but then increase its contribution to the South Vine Street Bridge to make up the difference.

One-Time Measure J-20 Appropriations
On June 30, 2024, there was approximately $8.8 million in unspent and unappropriated Measure J-20 funds. This is mainly due to police and fire personnel recruitment and the timing that it takes to get these positions hired. This creates a one-time salary savings from for these positions that have been put into fund reserves and are available for programming. As such, staff recommends appropriating $4 million to be programmed toward street repair and maintenance as shown below (half of the available reserve balance, with the remaining being retained for future unexpected public safety and/or road maintenance needs). Staff prioritized road segments that not only require maintenance, but also does not require retrofitting of utility lines, because including utility lines as part of the construction delays the actual road rehabilitation.

Street Segment Budget
16th Street (from Chestnut Street to Spring Street) $ 1,500,000 18th Street (from Vine Street to Spring Street) 350,000 30th Street (from Vine Street to Spring Street) 700,000 32nd Street (from Vine Street to Spring Street) 785,000 36th Street (from Vine Street to Spring Street) 710,000 Total $ 4,045,000
Other Miscellaneous Adjustments
Fire and Emergency Services Department recently expanded its notification systems to include the Zone Haven and Pulse Point applications software. These free mobile applications notify the community when there is an emergency, including notifying CPR-trained individuals when there is a cardiac emergency. The applications goal is to help save lives by connecting bystanders with victims before emergency responders can arrive. These programs come with an annual subscription of $12,000 per year, which was adversely omitted from base line budget amounts.

The City has entered into several agreements with Hamner, Jewell & Associates to provide appraisal services for the parcels throughout the City that is needed for right-of-way. Many of these parcels will be reimbursed by developers and their development impact fees; some parcels are needed to install upgrade wastewater facilities. In either case, staff did not formally appropriate funds for these purposes. The entry below will correct this error.

Right-of-Way Location
Funding
Source Budget
RV Links Road General $ 5,600
Huer Huero Creek Bridge/Road TIF 26,000
Olsen Ranch/South Chandler Niblick Right Turn TIF 25,800 Beechwood ARCO Right Turn TIF 4,100
Flag Way Sewer Easement Sewer 54,000
Total $ 115,500
TIF: Transportation Impact Fees Fund
Lastly, road maintenance costs have increased significantly primarily driven by rising inflation and construction costs, particularly related to labor, materials like asphalt and concrete, and transportation expenses. For the upcoming fiscal year, Merry Hill Road is scheduled for road maintenance, however, preliminary engineer’s estimates anticipate the project to be underbudget by $300,000. As of June 30, 2024, there was approximately $1.7 million of unappropriated Measure E-12 funds. This reserve balance

was caused by one-time project savings from other road maintenance projects coming in under-budget.

This will reduce the fund reserves to $1.4 million. Further discussions with City Council and the community on road maintenance are anticipated in the upcoming with the passage of Measure I-24 this past November. This will address future funding as well as the remaining reserve amount.

Fiscal Impact
Recommended budget amendments, as discussed above, total $4.5 million and is summarized as follows:

Item
Funding
Source Budget
American Rescue Plan Act Reclass Risk $ -
Measure J-20 Additional Road Maintenance J-20 4,045,000 Emergency Services Notification Application General 12,000 Right-of-Way Acquisitions Appraisal Services General 5,600 Developer-funded ROW Acquisitions Appraisal TIF 55,900
Sewer Easement Appraisal Services Sewer 54,000
Measure E-12 Additional Road Maintenance E-12 300,000
Total $ 4,472,500
CEQA
The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Recommendation (Option 2)
Receive and file this report and approve Resolution 24-XXX, amending budget appropriations, as presented.

Attachments

1. Resolution 24-XXX – Amending Budget Appropriations

2. General Fund Budget Report

3. Measure E-12 Road Maintenance Expenditure Report

4. Measure J-20 Budget Report

5. Capital Improvement Program Budget Report

Attachment 1
RESOLUTION 24-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PASO ROBLES AMENDING THE OPERATING AND CAPITAL BUDGET FOR FISCAL YEAR 2024-25 WHEREAS, in accordance with the Council’s adopted fiscal policies, no less than semi-annually, there will be a comprehensive review of the operations in comparison to the existing budget; and WHEREAS, because there are several assumptions and predictions used in the budget process, it is important to revisit those assumptions to ensure accuracy and solvency of the City; and WHEREAS, in order to lessen the administrative burden of producing and retaining City Council resolutions for all budget adjustments made throughout the year, in some instances the City Council provides authorization to move forward on service level increases with the intention of officially amending the budget by resolution during these quarterly budget reports; this allows multiple service level adjustments to be compiled into one resolution; and
WHEREAS, on June 18, 2024, City Council adopted the Operating and Capital Budget for Fiscal Years 2024- 25 and 2025-26; and
WHEREAS, budgets are plans, and plans may change as new information comes to light and as the environment in which the City operates changes; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. All of the above recitals are true and correct and incorporated herein by reference.

Section 2. The proposed amendments to the FY 2024-25 Operating and Capital Improvement Budget are as follows:
a. General Fund: $17,600 for Emergency Services notification application annual service and right-of-way acquisitions;
b. Capital Improvement Fund: $4,345,000 for additional Measure E-12 and J-20 road maintenance projects;
c. Transportation Impact Fee Fund: $55,900 for circulation-related right-of-way acquisitions; and
d. Sewer Fund: $54,000 for sewer easement
APPROVED by the City Council of the City of Paso Robles this 3rd day of December 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Attachment 1
John R. Hamon Jr., Mayor
ATTEST:

Melissa Boyer, City Clerk

CITY OF EL PASO DE ROBLES

QUARTERLY FINANCIAL REPORT
Fund Overview - General Fund
For the Fiscal Year Ending June 30, 2025
Q1
Actual
As of 9/30

REVENUES
Taxes
Sales Tax $ 18,685,500 $ 1,561,411 $ 18,597,885 $ (87,615) 99.5% Property Tax 14,915,400 646,322 15,131,556 216,156 101.4% Transient Occupancy Tax 10,522,000 2,043,347 10,376,184 (145,816) 98.6% Other Taxes 3,277,500 804,400 3,313,836 36,336 101.1%
Total Taxes 47,400,400 5,055,479 47,419,461 19,061 100.0% Charges for Current Services 2,832,000 1,024,919 3,228,501 396,501 114.0% Licenses and Permits 1,300,000 254,153 1,610,199 310,199 123.9% Use of Money and Property 2,020,900 1,383,661 2,020,900 - 100.0% Fines and Forfeitures 146,600 41,573 246,934 100,334 168.4% Revenues from Other Gov't Agencies 905,797 197,294 905,797 - 100.0% Other Revenues 78,000 22,794 36,803 (41,197) 47.2%
Interfund Transfers 951,500 - 951,500 - 100.0%
Total Revenues 55,635,197 7,979,873 56,420,095 784,898 101.4%

EXPENDITURES
City Council/City Manager's Office
PePersonnel Services 1,519,100 288,248 1,518,683 (417) 100.0% Operating Expenses 1,124,100 79,067 1,069,284 (54,816) 95.1% Total City Manager's Office 2,643,200 367,315 2,587,967 (55,233) 97.9% Administrative Services
Personnel Services 1,798,600 307,946 1,682,327 (116,273) 93.5% Operating Expenses 1,270,200 297,925 1,171,378 (98,822) 92.2% Capital Outlay 30,000 - 30,000 - 0.0%
Total Administrative Services 3,098,800 605,872 2,883,705 (215,095) 93.1% Police
Personnel Services 11,613,900 2,278,775 11,466,688 (147,212) 98.7% Operating Expenses 1,868,900 454,200 1,859,720 (9,180) 99.5% Total Police 13,482,800 2,732,975 13,326,408 (156,392) 98.8% Emergency Services
Personnel Services 7,315,500 1,673,977 7,291,881 (23,619) 99.7% Operating Expenses 816,294 101,990 711,300 (104,994) 87.1% Capital Outlay 368,395 11,858 368,395 - 100.0%
Total Emergency Services 8,500,189 1,787,825 8,371,576 (128,613) 98.5% Current Budget
Projected End
of Year Variance
% Received/
Expended
Attachment 2

CITY OF EL PASO DE ROBLES

QUARTERLY FINANCIAL REPORT
Fund Overview - General Fund
For the Fiscal Year Ending June 30, 2025
Q1 - Continued
Actual
As of 9/30
Public Works
Personnel Services 3,811,800 633,857 3,175,139 (636,661) 83.3% Operating Expenses 4,087,478 628,396 3,855,100 (232,378) 94.3% Debt Service 205,500 51,367 205,500 - 100.0%
Capital Outlay 45,000 - 45,519 519 101.2%
Total Public Works 8,149,778 1,313,620 7,281,258 (868,520) 89.3% Community Services
Personnel Services 4,158,900 807,141 3,958,181 (200,719) 95.2% Operating Expenses 2,157,200 608,577 2,201,500 44,300 102.1% Capital Outlay 112,300 - 112,300 - 100.0%
Total Community Services 6,428,400 1,415,718 6,271,981 (156,419) 97.6% Community Development
Personnel Services 4,037,800 545,554 2,833,504 (1,204,296) 70.2% Operating Expenses 1,452,000 197,280 1,297,300 (154,700) 89.3% Capital Outlay 120,000 - 120,000 - 100.0%
Total Community Development 5,609,800 742,834 4,250,804 (1,358,996) 75.8% All Other Non-Departmental Activity & Transfers
Capital Projects Fund Transfers 7,484,400 - 7,484,400 - 100.0% Internal Service Fund Transfers 6,549,600 - 6,549,600 - 100.0% Facility Replacement Transfer 750,000 - 750,000 - 100.0% City-wide contingency 262,500 - - (262,500) 0.0%
Total Interfund Transfers 15,046,500 - 14,784,000 (262,500) 98.3% Total expenditures 62,959,467 8,966,159 59,757,699 (3,201,768) 94.9% (7,324,270) (986,285) (3,337,604) 3,986,666
Actual Reserves, July 1, 2024 20,981,946 20,981,946
Estimated Reserves, June 30, 2025 13,657,676 17,644,342 Deficiency of revenues under
expenditures
Current Budget
Projected End
of Year Variance
% Received/
Expended
Attachment 2

CITY OF PASO ROBLES

ROAD MAINTENANCE AND REHABILITATION PROGRAM
Financial Activity
Inception‐to‐Date
2012‐13 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 2021‐22 2022‐23 2023‐24 Budget Actual‐to‐Date Remaining % Used 2025‐26 Total Measure E‐12 Sales Tax Revenue 578,836 4,475,073 4,642,539 4,526,680 4,596,531 5,022,128 5,122,785 4,861,231 5,790,874 6,926,178 6,694,444 6,765,568 5,046,000 985,154 4,060,846 19.5% ‐ 65,048,867 Completed Projects
Misc Professional Studies 140,163 303 783 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 141,249 C0028 ‐ 21st St Green Update ‐ 454,300 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 454,300 X0008 ‐ 13th St Bridge Improvement ‐ ‐ 300,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 300,000 C0045 ‐ Spring St (16th to 24th) ‐ 691 1,165,044 56,603 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,222,338 C0046 ‐ Country Club/Rolling Hills/South Rive ‐ 297,396 1,417,280 575 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,715,251 Transfer from General Fund ‐ (270,139) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (270,139) Net Project C0046 ‐ 27,257 1,417,280 575 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,445,112 C0050 ‐ Walnut/Jackson/Shannon Hill ‐ 8,360 6,239 812,124 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 826,723 State Grant to Project C0050 ‐ ‐ ‐ (24,470) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (24,470) Net Project C0050 ‐ 8,360 6,239 787,654 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 802,253 C0053 ‐ 12th St (Spring to Fresno) ‐ 107,232 189,928 2,364,625 122,701 7,022 3,737 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,795,245 State Grant to Project C0053 ‐ ‐ ‐ (1,042,600) (16,583) (62,974) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (1,122,157) Misc Revenue to Project C0053 ‐ ‐ ‐ (232) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (232) Net Project C0053 ‐ 107,232 189,928 1,321,793 106,118 (55,952) 3,737 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,672,856 C0054 ‐ Union Rd/Kleck/Montebello ‐ 285,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 285,000 C0055 ‐ Scott St Creston/Airport ‐ 45,574 63,200 1,600,873 9,590 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,719,237 State Grant to Project C0055 ‐ ‐ ‐ (24,920) (350) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (25,270) Misc Revenue to Project C0055 ‐ ‐ ‐ (56) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (56) Net Project C0055 ‐ 45,574 63,200 1,575,897 9,240 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,693,911 C0056 ‐ Creston/Golden Hill/Oak Meadows ‐ 73,246 4,492 13,722 278,965 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 370,425 C0057 ‐ Union Rd (Golden Hill/Hwy 46) ‐ 35,741 1,619 62,866 898,921 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 999,147 State Grant to Project C0057 ‐ ‐ ‐ (14,900) (3,690) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (18,590) Federal Grant to Project C0057 ‐ ‐ ‐ ‐ (715,785) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (715,785) Net Project C0057 ‐ 35,741 1,619 47,966 179,446 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 264,772 C0058 ‐ Spring St (1st to 15th) ‐ 36,912 27,813 283,809 3,406,102 298,589 11,684 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4,064,909 State Grant to Project C0058 ‐ ‐ ‐ ‐ ‐ (53,009) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (53,009) Misc Revenue to Project C0058 ‐ ‐ ‐ ‐ (59) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (59) Net Project C0058 ‐ 36,912 27,813 283,809 3,406,043 245,580 11,684 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4,011,841 C0060 ‐ Sherwood/Creston/Linne ‐ 41,802 755 4,805 89,273 523,495 1,729,989 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,390,119 C0062 ‐ Vine St (1st to 36th) ‐ 76,435 13,550 ‐ 49,514 96,871 367,247 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 603,617 C0085 ‐ Annual Slurry Seal/Chip Seal ‐ ‐ ‐ ‐ 393,396 720,439 425,825 354,236 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,893,896 C0105 ‐ 13th Street Pedestrian Imp. ‐ ‐ ‐ ‐ 28,566 71,869 863,447 366,909 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,330,791 State Grant to Project C0105 ‐ ‐ ‐ ‐ ‐ (22,818) (223,864) (373,753) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (620,435) Transfer from Gas Tax Fund ‐ ‐ ‐ ‐ ‐ ‐ (250,000) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (250,000) Transfer from SB 1 Fund ‐ ‐ ‐ ‐ ‐ ‐ (277,200) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (277,200) Net Project C0105 ‐ ‐ ‐ ‐ 28,566 49,051 112,383 (6,844) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 183,156 C0106 ‐ East Side Light Rehabilitation ‐ ‐ ‐ ‐ 28,739 943,307 117,398 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,089,444 C0119 ‐ Union Road along BSP ‐ ‐ ‐ ‐ ‐ 11,779 157,409 1,340,159 360,393 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,869,740 Misc Revenue to Project C0119 ‐ ‐ ‐ ‐ ‐ ‐ (150,000) ‐ (46,976) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (196,976) Net Project C0119 ‐ ‐ ‐ ‐ ‐ 11,779 7,409 1,340,159 313,417 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,672,764 C0139 ‐ Ramada Drive/Vendels Circle Rd ‐ ‐ ‐ ‐ ‐ ‐ 355,385 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 355,385 C0061 ‐ Spring St (24th to 36th) ‐ ‐ ‐ ‐ 24 9,389 20,385 530,851 2,257,974 5,702 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,824,325 State Grant to Project C0061 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (44,360) ‐ ‐ ‐ ‐ ‐ ‐ ‐ (44,360) Net Project C0061 ‐ ‐ ‐ ‐ 24 9,389 20,385 530,851 2,257,974 (38,658) ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,779,965 C0143 ‐ West Side Road Repairs ‐ ‐ ‐ ‐ ‐ ‐ 47,125 52,632 1,274,617 64,864 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,439,238 State Grant to Project C0143 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (37,000) (1,360) ‐ ‐ ‐ ‐ ‐ ‐ ‐ (38,360) Transfer from Gas Tax Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (118,500) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (118,500) Transfer from SB 1 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (630,000) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (630,000) Net Project C0143 ‐ ‐ ‐ ‐ ‐ ‐ 47,125 52,632 489,117 63,504 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 652,378 C0159 ‐ Jardine Road Pavement Repairs ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 366,840 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 366,840 C0163 ‐ Olive/16th‐20th Street Repairs ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 119,249 1,486,722 15,500 ‐ ‐ ‐ ‐ ‐ ‐ 1,621,471 Transfer from Measure J‐20 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (625,971) (15,500) ‐ ‐ ‐ ‐ ‐ ‐ (641,471) Net Project C0163 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 119,249 860,751 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 980,000 C0110 ‐ Dry Creek Road Improvements ‐ ‐ ‐ ‐ ‐ 102,494 134,414 230,387 2,940,745 1,042,725 54,925 ‐ ‐ ‐ ‐ ‐ ‐ 4,505,690 Actual 2024‐25
1 Attachment
3

CITY OF PASO ROBLES

ROAD MAINTENANCE AND REHABILITATION PROGRAM
Financial Activity
Inception‐to‐Date
2012‐13 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 2021‐22 2022‐23 2023‐24 Budget Actual‐to‐Date Remaining % Used 2025‐26 Total Actual 2024‐25
Misc Revenue to Project C0110 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (140,169) (53,140) ‐ ‐ ‐ ‐ ‐ ‐ ‐ (193,309) Net Project C0110 ‐ ‐ ‐ ‐ ‐ 102,494 134,414 230,387 2,800,576 989,585 54,925 ‐ ‐ ‐ ‐ ‐ ‐ 4,312,381 C0162 ‐ Rambouillet/Nicklaus Area ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 134,353 2,508,489 9 ‐ ‐ ‐ ‐ ‐ ‐ 2,642,851 Transfer from SB 1 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (500,000) ‐ ‐ ‐ ‐ ‐ ‐ ‐ (500,000) Transfer from Measure J‐20 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (507,842) (9) ‐ ‐ ‐ ‐ ‐ ‐ (507,851) Net Project C0162 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 134,353 1,500,647 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,635,000 C0176 ‐ Appaloosa Dr ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 21,313 652,649 ‐ ‐ ‐ ‐ ‐ ‐ 673,962 Transfer from Measure J‐20 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (173,962) ‐ ‐ ‐ ‐ ‐ ‐ (173,962) Net Project C0176 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 21,313 478,687 ‐ ‐ ‐ ‐ ‐ ‐ 500,000 C0177 ‐ Melody Dr/Patricia Ln ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 67,321 1,960,192 ‐ ‐ ‐ ‐ ‐ ‐ 2,027,513 C0197 ‐ Country Club Area ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 86,710 1,312,749 ‐ ‐ ‐ ‐ ‐ ‐ 1,399,459 Transfer from Measure J‐20 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (377,459) ‐ ‐ ‐ ‐ ‐ ‐ (377,459) Net Project C0197 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 86,710 935,290 ‐ ‐ ‐ ‐ ‐ ‐ 1,022,000 C0216 ‐ West Side Slurry/Chip Seal ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 39,418 543,343 ‐ ‐ ‐ ‐ ‐ 582,761 Transfer from Measure J‐20 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (39,418) (543,343) ‐ ‐ ‐ ‐ ‐ (582,761) Net Project West Side Slurry/Chip Seal ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total Completed Projects 140,163 1,192,853 3,190,703 4,092,824 4,569,324 2,646,453 3,332,981 2,501,421 6,114,686 3,918,013 3,429,094 ‐ ‐ ‐ ‐ ‐ ‐ 35,128,515 Projects in Progress
C0059 ‐ Creston Rd ‐ 211,494 17,798 35,099 88,133 872,865 455,250 107,894 38,367 46,403 337,674 1,849,556 8,609,218 1,379,164 7,230,054 16.0% ‐ 12,669,751 State Grant to Project C0059 ‐ ‐ ‐ ‐ (75,510) (91,103) (18,388) ‐ ‐ ‐ ‐ (405,922) (378,578) ‐ (378,578) 0.0% ‐ (969,501) Transfer from Gas Tax Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (500,000) ‐ (500,000) 0.0% ‐ (500,000) Transfer from SB 1 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (610,700) ‐ (610,700) 0.0% ‐ (610,700) Transfer from Measure J‐20 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (1,262,300) ‐ (1,262,300) 0.0% ‐ (1,262,300) Net Project C0059 ‐ 211,494 17,798 35,099 12,623 781,762 436,862 107,894 38,367 46,403 337,674 1,443,634 5,857,640 1,379,164 4,478,476 23.5% ‐ 9,327,250 C0084 ‐ 24th St Bridge Rehabilitation ‐ ‐ ‐ 31 128,728 186,869 120,050 206,322 83,198 140,945 420,542 89,481 2,683,352 17,209 2,666,143 0.6% ‐ 4,059,518 Federal Grant to Project C0084 ‐ ‐ ‐ ‐ (107,279) (106,199) (125,377) (99,229) (187,078) (95,368) (219,357) (46,766) (1,617,061) (95,477) (1,521,584) 5.9% ‐ (2,603,714) Transfer from General Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (125,773) ‐ (800,000) ‐ (800,000) 0.0% ‐ (925,773) Transfer from TIF Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (220,000) ‐ (220,000) 0.0% ‐ (220,000) Net Project C0084 ‐ ‐ ‐ 31 21,449 80,670 (5,327) 107,093 (103,880) 45,577 75,412 42,715 46,291 (78,268) 124,559 ‐169.1% ‐ 310,031 C0178 ‐ Rolling Hill Estates ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 24,365 12,195 1,074,918 88,522 ‐ 88,522 0.0% ‐ 1,200,000 Transfer from Measure J‐20 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (61,478) (88,522) ‐ (88,522) 0.0% ‐ (150,000) Net Project C0178 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 24,365 12,195 1,013,440 ‐ ‐ ‐ n/a ‐ 1,050,000 C0205 ‐ 17th Street (Chestnut to Spring) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 10,300 ‐ 839,406 ‐ 839,406 0.0% ‐ 849,706 Transfer from Measure J‐20 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (10,300) ‐ (839,406) ‐ (839,406) 0.0% ‐ (849,706) Net Project 17th Street ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ n/a ‐ ‐ C0208 ‐ Riverside ‐ 17th to 24th ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 46,444 1,400 1,152,156 424 1,151,732 0.0% ‐ 1,200,000 C0209 ‐ Sherwood/Sierra Bonita/Turtle Cree ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 103,246 22,173 7,569,581 163 7,569,418 0.0% ‐ 7,695,000 Transfer from Measure J‐20 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (2,565,000) ‐ (2,565,000) 0.0% ‐ (2,565,000) Net Project Sherwood/Sierra Bonita/Turtle ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 103,246 22,173 5,004,581 163 5,004,418 0.0% ‐ 5,130,000 C0215 ‐ Sunset/Panorama Street ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 17,681 3,255 2,579,064 2,541 2,576,523 0.1% ‐ 2,600,000 Transfer from Measure J‐20 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (17,681) (3,255) (2,579,064) (2,579,064) 0.0% ‐ (2,600,000) Net Project 17th Street ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,541 (2,541) n/a ‐ ‐ C0223 ‐ Elm Court, Capitol Hill, Palm Court ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 38,077 561,923 279,976 281,947 49.8% ‐ 600,000 Transfer from Measure J‐20 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (150,000) ‐ (150,000) 0.0% ‐ (150,000) Net Project Elm Ct, Capital Hill, Palm Ct ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 38,077 411,923 279,976 131,947 68.0% ‐ 450,000 C0224 ‐ Golden Hill ‐ Rolling Hills to Creston  ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 75,130 3,913,070 3,913,070 0.0% ‐ 3,988,200 Transfer from SB 1 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (1,018,900) ‐ (1,018,900) 0.0% ‐ (1,018,900) Transfer from Measure J‐20 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (250,000) ‐ (250,000) 0.0% ‐ (250,000) Net Project Golden Hill ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 75,130 2,644,170 ‐ 2,644,170 0.0% ‐ 2,719,300 C0225 ‐ Merry Hill ‐ 15th Street ‐ Terrace Hill ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 26,439 613,561 11,430 602,131 1.9% ‐ 640,000 Transfer from Measure J‐20 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (150,000) ‐ (150,000) 0.0% ‐ (150,000) Net Project Merry Hill ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 26,439 463,561 11,430 452,131 2.5% ‐ 490,000 C0226 ‐ Serenade/Holstein‐Bahama/St Andre ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 72,128 2,510,972 33,823 2,477,149 1.3% ‐ 2,583,100 Transfer from SB 1 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (1,526,200) ‐ (1,526,200) 0.0% ‐ (1,526,200) Net Project Serenade ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 72,128 984,772 33,823 950,949 3.4% ‐ 1,056,900 C0234 ‐ Melody Drive ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,094,800 33,320 3,061,480 ‐ ‐ 3,094,800 2 Attachment
3

CITY OF PASO ROBLES

ROAD MAINTENANCE AND REHABILITATION PROGRAM
Financial Activity
Inception‐to‐Date
2012‐13 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 2021‐22 2022‐23 2023‐24 Budget Actual‐to‐Date Remaining % Used 2025‐26 Total Actual 2024‐25
13th St/Niblick Bridge Deck Resurface ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 310,000 ‐ 310,000 0.0% 3,000,000 3,310,000 State Grant to Project C0137 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (240,000) ‐ (240,000) 0.0% (2,000,000) (2,240,000) Net Project C0137 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 70,000 ‐ 70,000 0.0% 1,000,000 1,070,000 Total Projects in Progress ‐ 211,494 17,798 35,130 34,072 862,432 431,535 214,987 (65,513) 116,345 574,971 2,735,136 19,729,894 1,662,573 18,067,321 8.4% 1,000,000 25,898,281 Upcoming Projects
C0221 ‐ Arciero Ct/Mesa Rd ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,425,000 1,425,000 Transfer from Measure J‐20 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (150,000) (150,000) Net Project Arciero Ct/Mesa Rd ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,275,000 1,275,000 C0222 ‐ Dallons/Tractor Area ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,890,000 1,890,000 Transfer from SB 1 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (842,600) (842,600) Net Project Dallons/Tractor Area ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,047,400 1,047,400 Total Projects Upcoming ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,322,400 2,322,400 Total Net Project Costs 140,163 1,404,347 3,208,501 4,127,954 4,603,396 3,508,885 3,764,516 2,716,408 6,049,173 4,034,358 4,004,065 2,735,136 19,729,894 1,662,573 18,067,321 8.4% 3,322,400 63,349,196 Summary
Measure E‐12 Supplemental Sales Tax 578,836 4,475,073 4,642,539 4,526,680 4,596,531 5,022,128 5,122,785 4,861,231 5,790,874 6,926,178 6,694,444 6,765,568 5,046,000 985,154 4,060,846 19.5% ‐ 65,048,867 Federal Grants ‐ ‐ ‐ ‐ 823,064 106,199 125,377 99,229 187,078 95,368 219,357 46,766 1,617,061 95,477 1,521,584 5.9% ‐ 3,319,499 State Grants ‐ ‐ ‐ 1,106,890 96,133 229,904 242,252 373,753 37,000 45,720 ‐ 405,922 618,578 ‐ 618,578 0.0% 2,000,000 5,156,152 Transfers from General Fund ‐ 270,139 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 125,773 ‐ 800,000 ‐ 800,000 0.0% ‐ 1,195,912 Transfers from Measure J‐20 Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,133,813 634,329 608,076 7,884,292 ‐ 7,884,292 0.0% 150,000 10,410,510 Transfers from Gas Tax Fund ‐ ‐ ‐ ‐ ‐ ‐ 250,000 ‐ 118,500 ‐ ‐ ‐ 500,000 ‐ 500,000 0.0% ‐ 868,500Transfers from SB 1 Fund ‐ ‐ ‐ ‐ ‐ ‐ 277,200 ‐ 630,000 500,000 ‐ ‐ 3,155,800 ‐ 3,155,800 0.0% 842,600 5,405,600 Transfers from TIF Fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 220,000 ‐ 220,000 0.0% ‐ 220,000 Misc Revenue ‐ ‐ ‐ 288 59 ‐ 150,000 ‐ 187,145 53,140 ‐ ‐ ‐ ‐ ‐ n/a ‐ 390,632Total Funding Sources 578,836 4,745,212 4,642,539 5,633,858 5,515,787 5,358,231 6,167,614 5,334,213 6,950,597 8,754,219 7,673,903 7,826,332 19,841,731 1,080,631 18,761,100 5.4% 2,992,600 92,015,672 Project Expense (140,163) (1,674,486) (3,208,501) (5,235,132) (5,522,652) (3,844,988) (4,809,345) (3,189,390) (7,208,896) (5,862,399) (4,983,524) (3,795,900) (34,525,625) (1,758,050) (32,767,575) 5.1% (6,315,000) (90,316,001) Measure E‐12 Fund Balance 438,673 3,509,399 4,943,437 5,342,163 5,335,298 6,848,541 8,206,810 10,351,633 10,093,334 12,985,154 15,675,533 19,705,965 5,022,071 19,028,546 1,699,671 3 Attachment
3

CITY OF PASO ROBLES
MEASURE J‐20 SUPPLEMENTAL SALES TAX
Financial Activity
Inception‐to‐Date
2020‐21 2021‐22 2022‐23 2023‐24 Budget YTD‐Actual
Budget
Remaining % Used
Measure J‐20 Supplemental Sales Tax1        3,080,064      13,142,001      13,327,879      13,509,741      13,375,500        1,980,254      11,395,246 14.8% Investment Income/(Loss)                7,246          (250,162)              68,260            731,173              80,000          (106,066)           186,066 ‐132.6% Other Miscellaneous Revenue ‐ ‐ ‐                4,096              16,500 ‐               16,500 0.0% Total Revenues        3,087,310      12,891,839      13,396,139      14,245,010      13,472,000        1,874,188      11,597,812 13.9% Police Department
Public Safety 911 Equipment        1,216,570 ‐            131,374 ‐ ‐  ‐  ‐  n/a Automated License Plate Reader System 100,455             ‐ ‐ ‐ ‐  ‐  ‐  n/a Police Officers ‐            159,619            642,495        1,156,781        3,992,600           400,132        3,592,468 10.0% Sergeants ‐ ‐ ‐            181,832           362,200 ‐            362,200 0.0% Commander ‐ ‐ ‐            162,514           317,100              88,956           228,144 28.1% Deputy Police Chief ‐ ‐ ‐ ‐ ‐  ‐  ‐  n/a
Dispatchers ‐ ‐              37,339            180,806           145,900              77,895              68,005 53.4% Dispatch Supervisor              57,507            174,639            175,501              60,572           169,700 ‐            169,700 0.0% Records Supervisor ‐ ‐ ‐              90,290           118,600              35,371              83,229 29.8% Administrative Assistant2 ‐              23,625              77,655            111,032           126,800              38,278              88,522 30.2% Lateral Hiring Incentive ‐ ‐ ‐              30,000           270,000 ‐            270,000 0.0% Vehicle & Personnel Protective Equipment ‐              62,404            507,101            542,717           177,000              55,862           121,138 31.6% PSC Camera System Upgrade ‐ ‐            190,656              85,930 ‐  ‐  ‐  n/a Police Substation/Evidence Storage Design ‐            143,972            122,048 ‐        2,324,980 ‐         2,324,980 0.0% Standards of Coverage Study ‐ ‐ ‐ ‐           150,000 ‐           150,000 0.0% Marketing Recruitment Firm ‐ ‐ ‐ ‐              70,000 ‐               70,000 0.0% Operating Expenses ‐ ‐ ‐ ‐              25,000 ‐               25,000 0.0% Total Police Department        1,374,532            564,258        1,884,169        2,602,474        8,249,880           696,494        7,553,386 8.4% Fire and Emergency Services
Firefighters              95,096            598,356        1,601,606        1,957,257        2,164,000           728,173        1,435,827 33.6% Administrative Captain ‐              71,712            242,347            257,170           263,800              83,032           180,768 31.5% Administrative Captain ‐ Training Officer ‐ ‐ ‐ ‐           215,200              26,976           188,224 12.5% Deputy Fire Chief ‐ ‐            125,417            307,772           311,400           121,246           190,154 38.9% Fire Prevention Specialist ‐ ‐ ‐            135,637           164,000              48,983           115,017 29.9% Federal SAFER Grant             (95,138)          (355,890)          (247,308)          (394,030) ‐  ‐  ‐  n/a Federal COVID Grant               (1,022)               (2,874) ‐ ‐ ‐  ‐  ‐  n/a Vehicle & Personnel Protective Equipment 7,074                              43,018            160,500        2,058,636              59,000                9,974              49,026 16.9% Fire Station No. 3 ‐        1,741,151        4,484,428            517,833           239,440 ‐            239,440 0.0% Training Tower ‐ ‐ ‐              12,722        2,987,278 ‐        2,987,278 0.0% Ambulance and Medical Transport Services ‐ ‐ ‐ ‐              50,000 ‐               50,000 0.0% Operating Expenses ‐ ‐ ‐ ‐              82,000 ‐               82,000 0.0% Total Fire and Emergency Services                6,010        2,095,473        6,366,990        4,852,997        6,536,118        1,018,384        5,517,734 15.6% Street and Road Maintenance
Streets Maintenance Personnel              13,487            153,121            118,752            143,003           416,100              44,904           371,196 10.8% Operating Expenses ‐ 70 ‐ ‐ ‐  ‐  ‐  n/a
Various Traffic Sign/Striping Improvements ‐ ‐            441,032              35,256           123,712 ‐            123,712 0.0% Transfer to Measure E‐12 Street Program ‐        1,133,813            634,329            608,076        9,884,292 ‐         9,884,292 0.0% Total Street and Road Maintenance              13,487        1,287,004        1,194,113            786,335      10,424,104              44,904      10,379,200 0.4% Total Net Measure J‐20 Expenditures        1,394,029        3,946,735        9,445,273        8,241,806      25,210,102        1,759,782      23,450,320 7.0% Measure J‐20 Fund Balance        1,693,281      10,638,384      14,589,251      20,592,455        8,854,353      20,706,861      11,852,508 Notes to the schedule above:
1 ‐ The City receives it's sales tax allocation two months after the end of the period. 2 ‐ In FY 2022‐23, the records clerk position was reclassified to the chief's administrative assistant position.

Actual 2024‐25
1 Attachment 4

CITY OF PASO ROBLES

CAPITAL IMPROVEMENT PROGRAM
Financial Activity
FY 2024-25
Project Project Name Project Budget
2025 Actual
Expenditures
AS002 Citywide User Fee Study 70,000 -
C0099 City Hall/Library Space Planning 2,674,175 -
C0129 Niblick Road Signal Synchronization 80,000 -
C0138 Niblick Road Street Corridor Project 2,358,551 83,176 C0151 Huer Huero Creek Bridge 3,331,265 176,416
C0154 EDA Fiber Optic Project 1,780,083 721,781
C0174 Pedestrian Enhancements at Flamson 608,345 -
C0179 Local Roadway Safety Plan 150,000 -
C0180 ADA Transition Plan 515,836 -
C0186 Centennial Park Asphalt Walking Trail - 9,737
C0194 Sherwood Park Improvement (Pickleball) 937,957 7,280 C0201 Downtown Parking Lot - Marv's Pizza/12th 1,256,477 10,712 C0204 City Corporation Yard Relocation 15,942,327 29,344 C0207 Highway 46 West Roundabouts 3,420,108 102,660
C0211 North River Road Bike/Pedestrain Path 1,638,800 27,135 C0212 Traffic Signal Upgrades 250,000 -
C0213 Mill Road Annexation 915,013 22,976
C0219 City Hall/Library Stucco Repair 57,425 20,325
C0220 City Hall/Library Electronic Keying 100,000 -
C0230 Larry Moore Park Improvement 840,021 43,424
C0233 Serenade Pedestrian Improvements 49,178 -
C0241 13th/Riverside Drainage Improvements 500,000 1,085 C0242 Purchase of Street Lighting System 300,000 -
CS007 Centennial Park Office Remodel 30,000 22,589
CS008 Library Carpet/Wall Replacement 233,500 -
ES007 Fire Station No. 3 206,587 105,303
ES020 Fire Training Tower 2,987,278 8,167
PD019 Police Substation 2,324,980 -
PW008 Centennial Park Parking Lot Repavement 106,166 4,194 PW009 Sr Center/Veteran's Center Shade Structure 128,483 32,033 PW011 Montebello Oaks Basin 109,225 3,073
PW012 Navajo Avenue Basin 111,301 280
PW013 Sleepy Hollow Outlay 49,676 770
PW014 Lubrizol Site Slope Improvement 297,326 4,510
PW016 Union Road Roadside Drainage 112,523 99,970
PW017 Public Safety Center Roof Repair 1,300,000 855,003 PW021 Library City Hall Doors/Closets 7,500 1,741
PW022 Public Safety Center HVAC/Pumps 275,000 -
PW023 Sr Center/Veteran's Center Monument Signage 2,500 - PW024 Centennial Park General Maintenance 6,000 6,035
Attachment 5

CITY OF PASO ROBLES

CAPITAL IMPROVEMENT PROGRAM
Financial Activity
FY 2024-25
Project Project Name Project Budget
2025 Actual
Expenditures
PW025 Centennial Park Stucco Repair 80,000 -
PW026 Centennial Park Pool Filtration/Chlorine Rep. 40,000 - PW027 Centennial Park Pool Replaster 20,000 -
PW028 Centennial Park Basketball Court Resurface 20,000 - PW029 Centennial Park Gym Wall Repaint 15,000 -
PW030 Veteran's Center Roof Replacement 75,000 -
PW031 Senior Center General Maintenance 6,000 6,035
PW032 BSP Concession Stand/Countertops 22,000 -
PW033 BSP-Drinking Fountain Replacement 10,000 -
PW034 BSP-Softball Shade Replacement 20,000 -
PW035 BSP-Soccer Scoreboard Replacement 8,000 -
PW036 Sherwood Park-Restroom Refresh 7,500 3,495
PW037 Robbins Field-Backstop Replacement 25,000 -
PW038 City Park-Carnegie Library Exterior Step 10,000 - X0006 South Vine Street Bridge/Road Realignment 22,854,518 151,150 X0007 Union Road/Hwy 46 East Overcrossing 14,139,703 22,504 Total 83,416,327 2,582,900
Note: The projects listed above exclude the Road Maintenance Projects. Please see Measure E12 Road Maintenance Expenditure Reports for further detail.

Attachment 5

Council Agenda Report
From: Chris Huot, Assistant City Manager
Damian Nord, Police Chief
Subject: Review of Downtown Employee Parking Lot Program and Introduction and First Reading by Title Only of an Ordinance Amending Paso Robles Municipal Code Chapter 12.44.010 Regarding Employee Parking Permits
CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Date: December 3, 2024
Facts

1. The Downtown Employee Permit Parking Pilot Program was approved by the City Council on October 16, 2018, to provide a low-cost parking option for downtown business owners and employees.

2. The employee permit parking lots are located at:
o Spring Street and 12th Street
o 12th Street, adjacent to Marv’s Pizza
o Alley between Pine Street and Railroad Street, 13th Street and 12th Street o 12th Street and Railroad Street

3. These City-owned employee parking lots collectively provide a total of 98 parking spaces.

4. The City Hall/Library and Train Station parking lots were previously part of the employee permit parking lot program, but were previously converted to first come, first served parking lots without timed restrictions.

5. The program was initially established prior to the implementation of paid on-street parking. The intent was to encourage employees to use designated lots, leaving on-street spaces available for customers.

6. Downtown employees currently have the option to purchase monthly or annual parking permits, either individually or in bulk. Annual permits are prorated and cost $5 per month.

7. The inclusion of 30-minute on-street parking spaces aims to provide convenient short-term parking for customers. There are currently 35 such spaces in the downtown area, which remain available for quick errands.

8. In May 2024, the City Council ended the paid, on-street parking program. Most on-street parking spaces within the downtown area are now first come, first served, without any time restrictions. The 30-minute and disabled parking spots remain throughout the downtown area.

9. At the August 20th City Council meeting, the City Council directed staff to review several elements of the employee parking lot program, including:
o Research the ownership and usage restrictions of employee permit only parking lots o Research a reduced or no cost decal-based permit system o Explore options and associated costs of increasing enforcement o Conduct outreach to downtown parking stakeholders

Community Outreach
Staff has not initiated outreach to stakeholders pending the outcome and direction of this item. Should the City Council choose to pursue a new or modified version of an employee parking lot program, staff will undertake the necessary outreach to ensure that feedback can be provided prior to final approval of such program. Should the City Council choose to eliminate the employee parking lot program, staff will provide necessary notifications to current permit holders, community stakeholders and the public.

Furthermore, staff will provide ample notification regarding the status of the parking lots becoming firstcome, first served public parking lots without time restrictions as of January 1, 2025.

Options

1. Take no action;

2. Do not pursue a low-cost employee parking lot program and eliminate the employee parking lot program as of January 1, 2025, and introduce by First Reading by Title Only of an Ordinance Amending Paso Robles Municipal Code Chapter 12.44.010 Regarding Employee Parking Permits;

3. Provide alternative direction to staff.

Analysis and Conclusions
Ownership and Utilization of Parking Lots
The four designated employee parking lots are owned by the City. Based on an exhaustive review of available property title reports, there are no restrictions placed on the use of these lots. Title reports for all four lots were conducted, and no legal constraints were identified, confirming that the City has full authority over their use and management. These lots were originally acquired and maintained by the City prior to the establishment of the Business Improvement District (BID) or the assessments that downtown businesses now remit to support the Main Street Association. The lots were not initially part of the BID or any specific revenue-generating program. Given that these parking spaces are owned outright by the City and have no restrictions on their use, they are fully under the City’s discretion for any future changes in policy or management.

Low-Cost Decal Program
At the request of the City Council, staff evaluated a Low-Cost Decal Program to replace the existing program, with the goal of managing employee parking in designated lots without requiring additional city staff. The program would offer the same 98 parking spaces and for evaluation purposes, staff estimated approximately 150 permits would be purchased in a year.

The program would utilize Data Ticket, a service provider that handles permit issuance, renewals, and employment verification, streamlining the process with minimal staff involvement. When the paid onstreet system was in place, the City’s previous payment vendor provided the employee parking lot administrative services at no additional cost. Therefore, staff evaluated new turnkey programs to help manage the low-cost decal program to avoid the need to hire additional City staff to provide this same service.

The annual cost for Data Ticket services is $9,500, plus additional fees. According to staff analysis, decals would be sold for $30 annually, which is 50 percent of the current employee parking rate, and is expected to generate $4,500 in revenue. The balance of the costs for the Data Ticket program would be subsidized by the General Fund, at an estimated annual subsidy of $5,000+, excluding enforcement and administrative costs.

Businesses or individuals can apply for permits, with the option to pay either annually or monthly through Data Ticket. The application process would require applicants to upload employment verification as part of the process.

If the City Council adopts the low-cost decal program, minimal changes would be needed to the signage, as current employee lot signs can be updated to reflect the new program.

Enforcement Enhancement Options
The existing Employee Permit Parking Program faces challenges related to enforcement and management.

At present, there is no dedicated staff assigned to oversee parking enforcement specifically for the employee parking lots, and there is no capacity within the existing workforce to reallocate staff for fulltime enforcement duties. Currently, employee parking lot violations are only addressed on a complaintdriven basis, with enforcement actions occurring only when a call for service is received. This has made it increasingly difficult to effectively monitor the use of parking spaces and enforce permit regulations.

To address these challenges, the City would need to hire additional part-time staff to manage and enforce the program. A part-time employee would cost approximately $27,900 annually. However, this employee would only be able to work 20 hours per week, dividing their time between enforcement and the general management of the parking program. While this part-time position could provide some enforcement, it would still fall short of addressing all the enforcement needs for the employee parking lots.

Alternatively, hiring a full-time employee to handle enforcement and program management would cost $122,400 annually. A full-time position would allow for more extensive enforcement hours and would provide more flexibility in managing the program. However, a full-time staff member would still need to be supported by additional oversight, such as a supervisor to review citations and handle disputes, further increasing the staffing requirements. If the City Council wishes to keep the employee parking program and increase enforcement, staff recommends pursuing the full-time position option to provide broader enforcement coverage and consistency.

One of the key issues complicating enforcement is the lack of on-street parking restrictions in the downtown area. Currently, there are no timed or paid parking spaces(with the exception of the 30-minute spaces and disabled parking spaces), meaning employees have no penalties for parking on the street.

Without on-street parking restrictions, it is impossible to prevent downtown employees from parking in spaces intended for customers. Given these challenges, enforcement of the Employee Permit Parking Program remains a difficult and costly task.
30 Minute Parking Spots
The 30-minute parking spots were originally implemented to offer short-term, free on-street parking. The 30-minute spots are intended solely for the purpose of running a quick errand that will take 30 minutes or less. Examples of uses for these spots include food delivery drivers picking up food from a downtown restaurant, a vendor dropping merchandise off at a downtown business, or a patron purchasing a good from a local merchant. These spots are meant to encourage very frequent turnover so that more people can have a chance to park in convenient locations. Reduction or elimination of these spots may impact these short-term types of transactions taking place in downtown businesses if other parking spots are not available. Staff has observed that most people are voluntarily adhering to the 30-minute time limits associated with these spots.

Conclusions
Staff have evaluated the current and future costs of maintaining the employee permit parking program.

The program’s enforcement is particularly costly, as there is no dedicated enforcement staff, and additional part-time or full personnel would be required to manage and monitor the permit system.

Furthermore, employees are not restricted from parking on the street, which means that employees may still choose to park on-street without facing penalties, further reducing the need for designated employee parking.

Given the lack of demand for the employee parking lots and the associated projected enforcement costs, staff recommends that the City Council terminate the Employee Permit Parking Program as of January 1, 2025. If approved, the designated parking lots would be converted to first-come, first-served public parking, with no time restrictions. This change would simplify parking management and eliminate the need for ongoing enforcement. An ordinance is necessary to delete the reference to the employee parking program that is within Chapter 12.44.010 of the municipal code.

Additionally, staff recommends that the current 30-minute parking spaces, which provide short-term parking for customers, remain in place without any additional enforcement. These spaces have been successful in supporting quick transactions for customers, and keeping them in their current form would ensure that downtown businesses continue to have convenient access for their patrons.

Finally, the City Council previously approved lighting and other improvements to the parking lots adjacent to Marv’s Pizza and at 12th and Railroad St. Those projects are moving forward regardless of City Council direction on the employee parking lot program. Bids are expected to be received in 1st quarter of 2025, with a bid award returning to the City Council soon thereafter.

Fiscal Impact
The cost to eliminate the employee parking program is nominal. Most of the costs will include staff time and materials to remove existing signage, notify stakeholders, and install new signage.

Should the City Council wish to pursue a modified version of the employee parking program, the costs will vary depending on the City Council’s desire to enhance enforcement. The program will cost $9,500 for annual administrative support from Data Ticket, with enforcement costs ranging from $28,000 to $122,400 annually.

CEQA
The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Recommendation (Option 2)
Staff recommends to not pursue low-cost employee parking lot program and to eliminate the employee parking lot program as of January 1, 2025, and to Introduce by First Reading by Title Only of an Ordinance Amending Paso Robles Municipal Code Chapter 12.44.010 Regarding Employee Parking Permits.

Attachments

1. Ordinance XXXX – Amending Paso Robles Municipal Code Title 12 – Vehicles and Traffic

Attachment 1
ORDINANCE NO. XXXX N.S.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES AMENDING CHAPTER 12.44.010 OF THE MUNICIPAL CODE OF THE CITY OF EL PASO DE ROBLES

REGARDING EMPLOYEE PARKING PERMITS
WHEREAS, the Downtown Employee Permit Parking Pilot Program was approved by the City Council on October 16, 2018, to provide a low-cost parking option for downtown business owners and employees; and
WHEREAS, the employee permit parking lots are located at Spring Street and 12th Street, 12th Street, adjacent to Marv’s Pizza, Alley between Pine Street and Railroad Street, 13th Street and 12th Street, and 12th Street and Railroad Street; and
WHEREAS, these City-owned lots collectively provide a total of 98 parking spaces; and WHEREAS, the program was initially established prior to the implementation of paid on-street parking; and
WHEREAS, the intent was to encourage employees to use designated lots, leaving on-street spaces available for customers.

WHEREAS, in May 2024, the City Council ended the paid, on-street parking program. Most on-street parking spaces within the downtown area are now first come, first served, without any time restrictions.

WHEREAS, on August 20, 2024, the City Council discussed and requested staff provide additional analysis on the employee parking permit program; and
WHEREAS, on December 3, 2024, the City Council determined that the employee permit parking program no longer meets its intended purpose and has elected to eliminate the program as of January 1, 2025, allowing all previously restricted employee parking lots to revert to first come, first served public parking lots.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. The recitals above are each incorporated by reference and adopted as findings by the City Council.

Section 2. Section 12.44.010 of the Municipal Code of the City of El Paso de Robles is hereby deleted in its entirety:

12.44.010 - Employee parking permits.

A. The city manager or designee may issue downtown employee parking permits with a term not to exceed one year subject to the requirements set forth in this subsection of this chapter and in administrative rules and regulations issued pursuant to this chapter.

B. A vehicle with a valid downtown employee parking permit shall be permitted to stand or be parked in an employee permit parking zone for which the permit has been issued. Any vehicle that has not been issued a valid parking permit shall be subject to the requirements and restrictions related to parking within the parking zones.

C. A downtown employee parking permit or any other permit as designated by the city manager shall not guarantee or reserve to the holder thereof a specific parking space within the designated permit parking zone.

D. This chapter shall not be interpreted or applied in a manner that shall abridge or alter regulations established by authority other than this chapter.

Section 3. California Environmental Quality Act (CEQA). Under Section 15378(b)(2), continued administrative activities such as policy making are not CEQA projects. The

Attachment 1
amendments to Municipal Code Section 12.44.010 are policies adopted by the City Council to regulate employee parking within City-owned parking lots. Additionally, pursuant to Section Attachment 1 15061(b)(3) CEQA does not apply to this amendment because there is no potential for causing a significant effect on the environment.

Section 4. Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance.

Section 5. Effective Date. This Ordinance shall be in full force and effect 30 days after its passage and adoption as provided by Government Code section 36397.

Section 6. Publication. The City Clerk shall certify to the passage of this Ordinance by the City Council of the City of El Paso de Robles, California, and cause the Ordinance to be published once within 15 days after passage in a newspaper of general circulation published and circulated in the City in accordance with Government Code section 36933.

INTRODUCED at a regular meeting of the City Council held on December 3, 2024, for first reading by the City Council of the City of El Paso de Robles, and adopted on the ___ day of ____, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

John R. Hamon, Jr., Mayor
ATTEST:

Melissa Boyer, City Clerk