Paso Robles City Council
September 1, 2026

Exhibit A

7. Compliance with State Law. The amount of cannabis allowed in each delivery vehicle shall comply with all applicable state laws.

8. Driver Requirements. All cannabis delivery drivers shall be at least 21 years of age and shall at all times during delivery:
a. Carry a copy of all required permits and licenses;
b. Carry a valid government-issued driver’s license that identifies and authorizes the driver to operate a vehicle in California; c. Carry the delivery manifest; and
d. Wear company-issued identification that is visible on their person.

C. Deliveries from Outside the City. A Cannabis Business that is licensed by the California Department of Cannabis Control, maintains its licensed premises outside the City, and delivers cannabis or cannabis products to any location within the City shall:

1. Obtain and maintain a City business license pursuant to Chapter 3.28 (Business License Tax);

2. Pay all taxes due under Chapter 3.22 (Cannabis Business Tax);

3. Hold and maintain in good standing all State Licenses required for the delivery activity conducted;

4. Comply with Subsections 5.55.140.B.1 Hours of Delivery), 5.55.140.B.2 (Customer Pre-Registration), 5.55.140.B.3 (Delivery Manifest), 5.55.140.B.4 (Vehicle Signage), and 5.55.140.B.8 (Driver Requirements) with respect to all deliveries within the City;

5. Maintain a current register of the make, model, and license plate of each vehicle used to make deliveries of cannabis products within the City, and provide the register to the City Manager or the Paso Robles Police Department upon request;

6. Ensure that each vehicle used to make deliveries within the City is equipped and operated in compliance with Title 4, California Code of Regulations, Section 15417, including its GPS requirements, and that the cannabis goods carried in each vehicle comply with all applicable state law limits; and

7. Comply with all other applicable State laws, policies, and procedures. § 5.55.150 General Authority of City Manager.

Exhibit A
A. The City Manager may delegate any act required to be performed pursuant to this Chapter to any Enforcement Officer, Chief of Police, Fire Chief, Building Official, Finance Director, City Attorney, or any authorized designee.

B. The City Manager and authorized designees shall have all powers necessary and appropriate to administer and enforce this Chapter, including without limitation the authority to:

1. Investigate violations or suspected violations of this Chapter and any regulations pertaining to cannabis in the City;

2. View, duplicate, and take possession of security camera recordings, which shall be made available upon verbal or written request without a search warrant or subpoena;

3. Enter a Cannabis Business or facility from time to time, unannounced, for the purpose of making reasonable inspections;

4. Serve all warrants, summonses, subpoenas, administrative citations, and other processes relating to the enforcement of this Chapter, Chapter 3.22 (Cannabis Business Tax), Chapter 3.28 (Business License Tax), and Chapter 21.60 (Cannabis);

5. Inspect, examine, or investigate any Cannabis Business and any books and records connected with any cannabis activity;

6. Require any Permittee to permit inspection of the Cannabis Business during business hours, including cannabis products, equipment, and records;

7. Require Applicants to submit complete applications, fees, and other information necessary to make permitting decisions;

8. Conduct investigations into the character, criminal history, and all other relevant factors related to the suitability of Applicants, Permittees, and employees; and

9. Promulgate administrative regulations consistent with this Chapter and applicable state law.

C. Applicants and Permittees shall cooperate with City employees and investigators conducting inspections or investigations. No Applicant, Permittee, or their employee shall obstruct, impede, or interfere with the City Manager or any authorized employee, including by: threatening force or violence; denying access during business hours; providing false or misleading statements or documents; or failing to timely produce required records.
§ 5.55.160 Suspension or Revocation of Permit.

A. No commercial cannabis activity may be conducted:

1. By a person who does not hold a valid Cannabis Regulatory Permit;

Exhibit A

2. After a permit has been denied, revoked, or has expired without a timely renewal application on file; or

3. While a Cannabis Regulatory Permit is suspended. A person with a timely and complete renewal application pending pursuant to Subsection 5.55.090.B may continue commercial cannabis activity while the renewal is under review, unless the City Manager has suspended or revoked the permit.

B. The City Manager may revoke or suspend any Cannabis Regulatory Permit on the following grounds:

1. Failure to comply with any provision of this Chapter;

2. Failure to comply with any term or condition of the Cannabis Regulatory Permit;

3. Failure to comply with any term or condition of any applicable land use entitlement approved pursuant to Chapter 21.60 (Cannabis);

4. Any act or omission that violates the requirements of this code, including any rule, regulation, condition, or standard adopted under this Chapter, or any applicable state or local law or regulation;

5. Any act or omission resulting in the denial, revocation, suspension, or expiration of the Permittee’s State License;

6. Failure to renew the Permittee’s State License;

7. The Cannabis Regulatory Permit was granted based in whole or in part on any written or oral misrepresentation or omission of a material fact in the application;

8. Conducting a Cannabis Business in a manner that constitutes a nuisance, where the Permittee has failed to comply with reasonable conditions to abate the nuisance;

9. Conviction for any felony by an Owner after a Permit has been issued;

10. Failure to maintain the Cannabis Business in active operation for six (6) consecutive months, as evidenced by tax filings, or as determined by the City Manager;

11. A deliberate or willful violation of any applicable law or regulation related to cannabis activity; or

12. Repeated nuisance or criminal activity associated with the cannabis business that adversely affects public health, safety, or welfare.

C. Suspension and Revocation Procedures.

Exhibit A

1. Before suspending or revoking a Permit, the City Manager shall provide the Permittee with written notice of the intended action, the grounds therefor, and the right to request a hearing before the City Manager or designee. The notice shall be served in accordance with Section 5.55.170 (Notice and Service).

2. The Permittee shall have fifteen (15) calendar days from service of the notice to request a hearing in writing. If no hearing is requested within that period, the suspension or revocation shall become effective on the date specified in the notice.

3. If a hearing is timely requested, the City Manager shall schedule a hearing within thirty (30) calendar days of receipt of the request and shall provide the Permittee with at least ten (10) calendar days’ written notice of the hearing date, time, and location.

4. At the hearing, the Permittee shall have the opportunity to present evidence and argument. The City Manager shall issue a written decision within fifteen (15) calendar days of the conclusion of the hearing.

5. The City Manager’s decision following a hearing may be appealed to the City Council pursuant to Subsection 5.55.050.D (Appeal).

6. Notwithstanding the foregoing, the City Manager may order an immediate summary suspension of a Cannabis Regulatory Permit, without prior notice or hearing, upon a finding that the Cannabis Business poses an immediate threat to public health, safety, or welfare. In such case, the Permittee shall be provided written notice of the summary suspension and the grounds therefor concurrently with or immediately following the suspension, and the Permittee shall have the right to request an expedited hearing within five (5) calendar days of service of the notice.

D. In deciding whether to suspend or revoke a Permit, the City Manager may consider: any corrective action taken; prior violations and effectiveness of prior corrective action; previous sanctions imposed; number and variety of violations; likelihood of recurrence; circumstances surrounding the violation; whether the violation was willful; actual or potential harm to the public; and any other factor that makes the situation of unique concern.
§ 5.55.170 Notice and Service. Wherever this Chapter requires the City to serve notice to an Applicant, Permittee, or property owner, such notice shall be given by the City Manager in writing and shall be delivered either by personal delivery or by certified U.S. mail, postage prepaid, return receipt requested, to the mailing address provided in the Application or as subsequently updated by the Permittee in writing.

Service by certified mail shall be deemed complete upon deposit in the U.S. mail. In addition, any such notice may be posted at the physical address of the Premises on the date of mailing. § 5.55.180 Voluntary Surrender of Permit. A Permittee may voluntarily surrender a Cannabis Regulatory Permit by delivering written notice of surrender to the City Manager. A voluntary surrender shall be effective upon receipt by the City Manager. Voluntary surrender shall not preclude the City from investigating or pursuing any violation of this Chapter that occurred prior to the date of surrender, nor

Exhibit A
shall it affect any tax obligations accrued prior to surrender. Voluntary surrender shall not, by itself, be deemed an admission of any violation.
§ 5.55.190 Violations and Penalties. Each and every violation of this Chapter shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by this Code.

Additionally, as a nuisance per se, any violation of this Chapter shall be subject to injunctive relief, revocation of the Cannabis Regulatory Permit, revocation of any land use entitlement for the location, disgorgement and payment to the City of any and all monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any other relief or remedy available at law or equity. The City may also pursue any and all remedies and actions available and applicable under local and State laws for any violations committed by the cannabis business and persons related or associated with the business. § 5.55.200 Remedies Cumulative. The remedies provided in this Chapter are not mutually exclusive.

Pursuit of any one remedy does not preclude the City from availing itself of any or all available administrative, civil, or criminal remedies at law or equity. The remedies provided by this Chapter are cumulative and in addition to any other remedies available at law or in equity, including but not limited to remedies available for cannabis business tax violations under Chapter 3.22 of this code. § 5.55.210 Liability of Employees, Agents, and Property Owners.

A. The act, omission, or failure of an agent, officer, representative, or other person acting for or employed by a Cannabis Business, within the scope of their employment or office, shall in every case be deemed the act, omission, or failure of the Cannabis Business.

B. No property owner in charge of or in possession of any real property within the City shall cause, permit, maintain, conduct, or otherwise suffer or allow a public nuisance to exist.

It is the duty of every property owner to remove, abate, and prevent the reoccurrence of any such public nuisance upon the property, regardless of whether the property owner is in actual possession, and including an obligation to act to evict or otherwise remove an unlawful cannabis operation from the property.

Exhibit A
Section 2. Table 21.32-1 of Title 21, Chapter 21.32 of the Paso Robles Municipal Code is amended to include Cannabis, Non-Storefront Retail, as follows:

Table 21.32-1: Zoning District Use Regulations (portion) Land Uses R-A R-1 R-2 R-3 R-4 R-5 OP CP C-1 C-2 C-3 RC RL M PM AP AG POS OS PF Specific Use Regulations
Commercial—Retail and Restaurant Uses
Cannabis,
NonStorefront
Retail
- - - - - - - - - - C - - - - - - - - - See Chapter

21.60 (Cannabis)
Certified
farmers
market and
year-round
roadside
produce
stands
— — — — — — — — — C C C C C C C C C — —
Section 3. Table 5.3-1 of the Uptown/Town Centre Specific Plan is amended to include Cannabis, NonStorefront Retail, to read as follows:

Table 5.3-1: Allowed Land Uses and Permit Requirements (portion) Land Use Type PERMIT REQUIREMENTS BY ZONE Specific Use
Regulations
T3-N T3-F T4-N T4-F T4-NC TC-1 TC-2 RSC OS
Business, Trade
Schools
- - - - - P P P -
Cannabis, NonStorefront Retail- - - - - - - CUP - See Paso Robles
Municipal
Code Chapter

21.60 (Cannabis)
Card rooms - - - - - CUP CUP CUP -
Section 4. Chapter 21.60 of the Paso Robles Municipal Code is hereby repealed in its entirety and replaced to read as follows:

CHAPTER 21.60 CANNABIS
§ 21.60.010 Purpose and Applicability.

A. The purpose of this Chapter is to protect public health, safety, and welfare by regulating personal, medicinal, and commercial cannabis uses consistent with Article 2 of Chapter 6 of Division 10 of the California Health and Safety Code (Sections 11357-11362.9, as amended), Division 10 of the California Business and Professions Code (Section 26000 et seq., as amended), and all regulations promulgated thereunder.

Exhibit A
B. It is the intent of the City Council to:

1. Allow personal cultivation of cannabis pursuant to this Chapter and state law;

2. Allow Non-Storefront Retail of cannabis operating under a Conditional Use Permit in limited zoning districts; and

3. Prohibit all other commercial cannabis activities including, but not limited to storefront retail, temporary cannabis events, cultivation, manufacturing, testing laboratories, distribution facilities, and microbusinesses.

C. Nothing in this Chapter shall preempt or make inapplicable any provision of state or federal law.

D. This Chapter shall be read and applied in conjunction with Chapter 3.22 (Cannabis Business Tax) and Chapter 5.55 (Cannabis Regulatory Permits) of this code. § 21.60.020 Definitions. The following definitions shall apply to this Chapter. Any reference to California statutes includes any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision. Terms defined in Chapter 3.22 (Cannabis Business Tax) and Chapter 5.55 (Cannabis Regulatory Permits) have the same meaning when used in this Chapter unless otherwise defined herein. Any term used but not defined in this Chapter that is defined in the California Business and Professions Code or the California Health and Safety Code shall have the meaning set forth in the applicable state statute, unless the context requires otherwise.

A. “Adult-use cannabis” means cannabis or cannabis products intended for adults who are 21 years of age or older and who do not possess a physician’s recommendation, as defined in California Business and Professions Code Section 26001.

B. “Applicant” means a person 21 years of age or older who has submitted an Application for a Conditional Use Permit pursuant to Chapter 21.19 (Conditional Use Permits and Administrative Use Permits). If the Applicant is an entity and not a natural person, “Applicant” includes all persons having a 20% or more financial interest in the entity.

C. “Application” means the forms and required supporting documents provided by the Director in accordance with this Chapter for the purpose of seeking a Conditional Use Permit For a Cannabis Business.

D. “Cannabis Regulatory Permit” means a regulatory permit issued by the City to a Cannabis Business pursuant to Chapter 5.55 (Cannabis Regulatory Permit), required before any authorized commercial cannabis activity may be conducted in the City.

E. “Commercial cannabis activity” shall have the same definition as set forth in California Business and Professions Code Section 26001 and means the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products.

F. “Delivery” means the commercial transfer of cannabis or cannabis products to a customer, and includes the use by a retailer of any technology platform owned and controlled by the

Exhibit A
retailer, or independently licensed under California law, that enables customers to arrange for or facilitate the commercial transfer by a licensed retailer of cannabis or cannabis products.

G. “Licensee” means the holder of any state-issued license related to cannabis activities, including licenses issued under Division 10 of the California Business and Professions Code.

H. “Medicinal cannabis” shall have the same definition as set forth in California Business and Professions Code Section 26001 and means cannabis or cannabis products intended to be sold or donated for use pursuant to the California Compassionate Use Act of 1996 by a medicinal cannabis patient who possesses a physician’s recommendation, or in compliance with California Health and Safety Code Section 11362.1.

I. “Non-Storefront Retail” or “Non-Storefront Retailer” means a cannabis business that is closed to public access and conducts sales exclusively by delivery as defined in California Business and Professions Code Section 26070(a)(2), and requires a Type 9 (Non-Storefront Retailer) license (or successor license type) from the California Department of Cannabis Control.

J. “Permittee” means a person issued a Conditional Use Permit for a cannabis NonStorefront Retail use.

K. “Private residence” means a house, an apartment unit, a townhouse, a condominium, a mobile home, or other similar dwelling that is lawfully used as a residence.

L. “Storefront retail” means a cannabis business that has a physical location from which commercial cannabis activities are conducted and cannabis goods are offered for retail sale, and requires a Type 10 (Retailer) license from the California Department of Cannabis Control.

M. “Youth center” has the same meaning as in California Health and Safety Code Section 11353.1 and means any public or private facility primarily used to host recreational or social activities for minors, including private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities. § 21.60.030 Personal Recreational Use.

A. General. For purposes of this Section, personal recreational use, possession, purchase, transport, or dissemination of cannabis shall be considered unlawful in all areas of the City to the extent it is unlawful under state law.

B. Outdoor Cultivation Prohibited. A person may not plant, cultivate, harvest, dry, or process cannabis plants outdoors in any zoning district of the City. No use permit, building permit, variance, or any other permit or entitlement, whether administrative or discretionary, shall be approved or issued for any such use or activity.

C. Indoor Cultivation Permit and Requirements.

Exhibit A

1. General. A person 21 years of age or older may cultivate up to six (6) live cannabis plants for personal use only inside a private residence, or inside a fully enclosed and secure accessory structure to a private residence located upon the grounds of a private residence, that is not visible from a public place and complies with California Health and Safety Code Sections 11362.1 and 11362.2, provided the cultivation is for personal use only and does not constitute commercial cannabis activity.

2. Permit. The cultivator shall obtain and maintain a ministerial Indoor Cultivation Permit from the Community Development Department confirming compliance with the following requirements:
a. Cultivation shall be limited to one (1) room or area not exceeding 150 square feet, securely locked and accessible only to residents 21 years or older, with no external evidence of cultivation, including odors, visible plants, lighting not in compliance with Chapter 21.82 (Lighting and Illumination) of this code, or noise not in compliance with Chapter 21.83 (Noise) of this code.
b. Cultivation shall comply with all applicable building, fire, electrical, and plumbing codes; no gas products (e.g., CO2, butane) may be used for cultivation.
c. The cultivator shall reside full-time at the residence and, if not the owner, shall obtain written consent from the property owner.
d. Cultivation shall not create nuisances affecting the health or safety of residents or neighbors and shall comply with Chapter 21.85 (Performance Standards – General) of this code.

3. Guidelines and Fee. The Community Development Department may issue ministerial guidelines for verification of compliance with this Section. The City Council may adopt a fee for the Indoor Cultivation Permit by resolution. § 21.60.040 Medicinal Cannabis.

A. Personal Cultivation. Cultivation of medicinal cannabis pursuant to California Health and Safety Code Section 11362.77 is subject to the cultivation requirements of Section

21.60.030 (Personal Recreational Use), except that a qualified patient 18 years of age or older may cultivate personal medicinal cannabis plants in excess of the six-plant (6-plant) limit if the amount is consistent with the patient’s medical needs as determined by a physician, provided it complies with California Health and Safety Code Sections 11362.1, 11362.2, and 11362.77, remains indoors in a secure structure, and does not constitute commercial cannabis activity.

B. Medicinal Cannabis Cooperatives Prohibited. The establishment or operation of any medicinal cannabis collective, cooperative, storefront dispensary, operator, establishment, or provider shall be considered a prohibited use in all zoning districts of the City. No use permit, variance, building permit, or any other entitlement or permit,

Exhibit A
whether administrative or discretionary, shall be approved or issued for the establishment of any such collective, cooperative, storefront dispensary, operator, establishment, or provider in any zoning district, and no person shall otherwise establish such businesses or operations in any zoning district.

C. For medicinal cannabis non-storefront retail, see Section 21.60.050 (Non-Storefront Retail).
§ 21.60.050 Non-Storefront Retail.

A. Non-Storefront Retail of both medicinal and adult-use cannabis is conditionally permitted subject to the following limitations:

1. Operation is allowed only upon issuance of:
(i) A Conditional Use Permit pursuant to this Chapter and Chapter 21.19 (Conditional Use Permits and Administrative Use Permits); (ii) A Cannabis Regulatory Permit pursuant to Chapter 5.55 (Cannabis Regulatory Permit) of this code;
(iii) A valid City business license pursuant to Chapter 3.28 (Business License Tax);
(iv) A Type 9 California Department of Cannabis Control license (or successor license type); and
(v) All other required permits, entitlements, and State License(s).

2. Non-Storefront Retail cannabis businesses are allowed only in the Riverside Corridor (RSC) zoning district of the Uptown/Town Centre Specific Plan and the Commercial/Light Industrial (C-3) zoning district.

B. In addition to complying with all procedures and requirements for issuance of a Conditional Use Permit specified in Chapter 21.19, the Planning Commission shall not approve a Conditional Use Permit for a Non-Storefront Retail cannabis business unless it makes all of the following findings, supported by substantial evidence in the record:

1. The proposed use is likely to enhance or not materially detract from the economic vitality of the area in which it is proposed to be located;

2. The Applicant has adequately addressed potential adverse impacts of the proposed use and will implement appropriate mitigation measures to reduce those impacts to a less-than-significant level or to the maximum extent feasible;

3. The proposed use will not result in an overconcentration of cannabis businesses in the surrounding area; and

Exhibit A

4. The extent of support or opposition to the proposed use and location from members of the community has been considered and the project, with conditions of approval, is compatible with the surrounding area.

C. If a Non-Storefront Retailer Permittee fails to hold a valid State License or fails to actively engage in business in the city for a period of six (6) consecutive months, as evidenced by tax filings under Chapter 3.22 (Cannabis Business Tax) of this code, the Conditional Use Permit shall be subject to revocation after notice and the opportunity for a hearing by the Planning Commission pursuant to Section 21.24.050 (Revocations and Suspensions).

D. Separation Requirements. A Non-Storefront Retailer shall not be located within a sixhundred-foot (600-foot) radius of:

1. Any public or private school providing instruction in kindergarten or any grades 1 through 12;

2. Any day care center;

3. Any youth center; or

4. Any public park or City-owned park that is in existence at the time the Application is filed.

5. Notwithstanding the foregoing, the Planning Commission may approve a Conditional Use Permit for a Non-Storefront Retailer located within the separation distances set forth above if the Planning Commission finds, based on substantial evidence in the record, all of the following:
a. The proposed site will not pose a threat to the public health, safety, and welfare of the surrounding community and properties;
b. Due to the non-storefront nature of the business, customers will not be present at the site and there will be no operational interface with protected uses; and
c. Adequate conditions of approval can be imposed to mitigate any potential adverse impacts on the adjacent protected use.

E. Signage Standards. In addition to the standards in Chapter 21.52 (Signs) of this code, a Non-Storefront Retailer shall comply with the following signage standards, which may be further limited by the Conditional Use Permit:

1. All on-site signage on the exterior of the building shall total no more than twenty (20) square feet;

2. No highway-oriented sign, whether existing or proposed, shall be permitted on the same site as a Non-Storefront Retailer;

Exhibit A

3. Non-Storefront Retailers shall not advertise on any highway-oriented sign in the City; and

4. Non-Storefront Retailers shall not advertise on any off-premises sign in the City.

F. Administration. The Director is authorized to develop Application forms and to promulgate and administer reasonable guidelines and policies necessary to carry out the purposes and intent of this Chapter.
§ 21.60.060 Prohibited Commercial Cannabis Activities. With the exception of Non-Storefront Retail pursuant to Section 21.60.050, no other commercial cannabis activities are permitted in the City, and no use permit, variance, building permit, or any other entitlement or permit, whether administrative or discretionary, shall be approved or issued for any such activity, including but not limited to:

A. Cultivation (all state license types);
B. Manufacturing (e.g., California Department of Cannabis Control License Types 6, 7, N, P, and S);
C. Distribution (e.g., California Department of Cannabis Control License Types 11 and 13); D. Testing laboratory (e.g., California Department of Cannabis Control License Type 8); E. Storefront retailer (e.g., California Department of Cannabis Control License Type 10); F. Microbusiness (e.g., California Department of Cannabis Control License Type 12); G. Temporary Cannabis Events pursuant to California Business and Professions Code Section 26200; and
H. Any other commercial cannabis activity or business licensed by the state under Division 10 of the California Business and Professions Code, as it may be amended from time to time.
§ 21.60.070 Commercial Cannabis Delivery Activity from Outside the City. Cannabis businesses licensed by the California Department of Cannabis Control and physically located outside city limits may deliver cannabis into the City if they comply with all requirements Chapter 3.22 (Cannabis Business Tax), Chapter

3.28 (Business License Tax), Subsection 5.55.140.C (Deliveries From Outside the City), and all applicable State laws, policies and procedures.
§ 21.60.080 Violations. No person, whether as principal, agent, employee, or otherwise, shall violate, cause the violation of, or otherwise fail to comply with any of the requirements of this Chapter. Every act prohibited or declared unlawful, and every failure to perform an act made mandatory by this Chapter, shall be a misdemeanor or an infraction, at the discretion of the City Attorney or the District Attorney. In addition to the penalties provided in this Section, any condition caused or allowed to exist in violation of any of the provisions of this Chapter is declared a public nuisance and may be abated as provided in Chapters 1.02 (Penalties) and 1.03 (Administrative Citation) of this code, Chapter 5.55 (Cannabis Regulatory Permit) of this code, and/or under state law. Nothing in this Section limits the City’s authority to pursue administrative, civil, and other remedies pursuant to Chapter 5.55 (Cannabis Regulatory Permit).

Council Agenda Report
From: Mark Scandalis, Airport Manager
Subject: Approval of a Resolution Accepting a Federal Aviation Administration Grant for the Taxiway Alpha Reconstruction and Award of a Construction Contract CEQA: The City finds that this action is categorically exempt from the California Environmental Quality Act (“CEQA”) under the Class 1 exemption, which applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing structures, facilities, mechanical equipment, or topographical features where the project involves negligible or no expansion of existing or former use (State CEQA Guidelines, § 15301).

Date: September 1, 2026
Facts

1. The Fiscal Year (FY) 2027-28 adopted budget approved a series of capital improvement projects for the Airport. The majority of these projects rely on grant funding from the Federal Aviation Administration (FAA).

2. After FAA review and approval of the plans and specifications for a Taxiway Alpha rehabilitation project, the City received an FAA grant for the design of the project in FY 2025-26.

3. Following approval of the design, on July 13, 2026, eight bids were received with an engineer’s estimate of $3.4 million. Contractors’ bid amounts were as follows:

Construction Company Bid Amount
Souza Construction $3,279,985.30
Griffith Company $3,304.142.00
CalPortland Construction $3,384,938.00
Granite Construction $4,043,995.00
John Madonna Construction $4,166,694.50

4. Staff reviewed the lowest bid submitted by Souza Construction and found it to be the most responsive and responsible bid. Souza Construction’s total fee is not to exceed $3,279,985.30 which is to be covered by the grant.

5. Tartaglia Engineering, as the Airport Engineer of record, submitted a scope of work and fee proposal to assist staff with inspection, construction management, and engineering support for the work.

Tartaglia’s total fee is not to exceed $549,800, which is to be covered by the grant. Remaining grant funding shall cover other eligible expenses, as defined under the grant.

6. The City has been notified it has received a grant offer from the FAA to fund eligible expenses for the proposed project in an amount not to exceed $3,895,000.

7. The City must accept the grant offer in a timely manner and authorize the City Manager to execute the grant offer.

8. In support of State airport infrastructure, the Cal Trans Department of Aeronautics, with appropriate grant match application documentation, will reimburse the Airport fund for 5% of the grant amount upon completion of the project.

Options

1. Take no action;

2. Accept the FAA grant offer for a Taxiway Alpha rehabilitation project, award a construction contract to Souza Construction for the construction of the project, and award a contract to Tartaglia Engineering for engineering support and construction management under a Professional Services Agreement .

3. Return item to staff to pursue an alternate course of action.

Analysis and Conclusions
The Airport continues to serve as an essential community facility and economic asset. By design, the Airport is expected to operate as an independent enterprise with minimal support from the General Fund.

As a result, major capital improvement projects would generally be unattainable without the infusion of funding available through Federal Aviation Administration (FAA) grant programs.

This taxiway rehabilitation project will ensure the continued safe and efficient operation of the Airport’s taxiway system serving the main runway. The project includes full-depth reconstruction of the taxiway section to meet current FAA standards. The reconstruction will strengthen and extend the useful life of the taxiway, allowing the Airport to continue safely accommodating large aircraft, including CAL FIRE, military, and corporate aviation operations.

Overall, the project will enhance airport safety and operational efficiency by providing a stronger, more durable taxiway surface for aircraft using the Airport. The project will also advance one of the City Council’s adopted goals for this budget cycle under Goal 1: Facilities, Transportation & Infrastructure, specifically the objective to “pursue grant funding for taxiway rehabilitation and improvements.” Fiscal Impact
The total cost for Tartaglia Engineering construction management services is $549,800 and the total cost for Souza Construction’s portion is $3,279,985.30. The taxiway rehabilitation project is 95 percent funded by the FAA grant and 5 percent funded by the Airport Fund; however, an additional Cal Trans Department of Aeronautics reimbursement is anticipated, reducing the Airport’s portion of the project by approximately $9,837. Regardless, this is a reimbursement grant, meaning the Airport will fund the cost of the work upfront and periodic reimbursement payments will be made by the FAA as work is completed.

CEQA
The City finds that this action is categorically exempt from the California Environmental Quality Act (“CEQA”) under the Class 1 exemption, which applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing structures, facilities, mechanical equipment, or topographical features where the project involves negligible or no expansion of existing or former use (State CEQA Guidelines, § 15301). The Project involves a full-depth rehabilitation and reconstruction of the Airport’s taxiway section to current FAA standards to ensure continued safe and efficient use of the Airport’s taxiway system.

Recommendation
Approve Resolution 26-XXX, authorizing:

1. The City Manager or designee to execute the grant agreement with the FAA in an amount not to exceed $3,895,000; and

2. The City Manager or designee, in conjunction with the City Attorney, to negotiate and execute a professional services agreement for engineering services with Tartaglia Engineering for assistance with the taxiway project for an amount not to exceed $549,800, with any necessary funding conditions required under the issued FAA grant agreement; and

3. The City Manager or designee, in conjunction with the City Attorney, to negotiate and execute a construction contract with Souza Construction for an amount not to exceed $3,279,985.30; and

4. The City Manager or designee to apply for and execute a grant match agreement with Cal Trans Division of Aeronautics; and

5. Authorize appropriate transfers from the Airport reserves to the Airport budget to fund the project until reimbursement payments are made by the FAA.

Attachments

1. Resolution 26-XXX – Taxiway Alpha Contracts

2. FAA Grant Application Documents and Grant Assurances

3. Fee Work-Up Taxiway Alpha - Tartaglia Engineering

4. Souza Construction bid report

Attachment 1
RESOLUTION 26-XXX

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

AUTHORIZING ACCEPTANCE OF A GRANT OFFER FROM THE FEDERAL AVIATION ADMINISTRATION

AND AWARDING PROFESSIONAL SERVICES AGREEMENT AND CONSTRUCTION CONTRACT FOR THE

TAXIWAY ALPHA REHABILITATION PROJECT
WHEREAS, the Fiscal Year 2027-28 adopted budget approved a series of Capital Improvement projects for the Airport; and
WHEREAS, the majority of Airport Capital Improvement projects rely on grant funding from the Federal Aviation Administration (FAA), and
WHEREAS, after FAA review and approval of the plans and specifications for a Taxiway Alpha rehabilitation project (Project), the City was notified it will receive a grant offer not to exceed $3,895,000 from the FAA to fund all eligible expenses for the Project; and
WHEREAS, Tartaglia Engineering, the Airport engineer of record, prepared plans and specifications for the taxiway project; and
WHEREAS, Tartaglia Engineering submitted a scope of work and fee proposal to assist staff with inspection, construction management, and engineering support for the work in an amount not to exceed $549,800, which is to be covered by the grant; and
WHEREAS, the City conducted a public request for bids for construction of the Project with an engineer’s estimate of $3.4 million. Eight bids were received, and staff found Souza Construction to be the most responsive and responsible bidder in an amount not to exceed $3,279,985.30; and WHEREAS, with grant match application documentation, the Cal Trans Department of Aeronautics will reimburse the Airport Fund a portion of this grant.

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. CEQA. The City Council finds that this action is categorically exempt from the California Environmental Quality Act (“CEQA”) under the Class 1 exemption, which applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing structures, facilities, mechanical equipment, or topographical features where the project involves negligible or no expansion of existing or former use (State CEQA Guidelines, §15301). The Project involves a full-depth rehabilitation and reconstruction of the Airport’s taxiway section to current FAA standards to ensure continued safe and efficient use of the Airport’s taxiway system. Additionally, none of the exceptions to the statutory exemptions pursuant to State CEQA Guidelines, §15300.2 apply to the Project. The cumulative impact of successive projects of the same type in the same place, over time will not be significant; the

Attachment 1
Project will not result in damage to scenic resources; the Project is not located on a hazardous waste site; and the Project will not cause a substantial adverse change in the significance of a historical resource.

Section 3. The City Manager or designee is authorized to execute the FAA Grant Agreement for the Project
Section 4. The City Manager or designee, in conjunction with the City Attorney, is authorized to negotiate and execute a professional services agreement for engineering services with Tartaglia Engineering for the Project for an amount not to exceed $549,800..

Section 5. The City Manager or designee, in conjunction with the City Attorney, is authorized to negotiate and execute a construction contract for the Project with Souza Construction for an amount not to exceed $3,279,985.30..

Section 6. The City Manager or designee is authorized to apply for and execute a grant match agreement with Cal Trans Division of Aeronautics to reimburse the City a portion of project expenses.

Section 7. The City Manager or designee is authorized to initiate appropriate transfers from the Airport reserves to the Airport budget to fund the project until reimbursement payments are made by the FAA.

APPROVED this 1st day of September, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

John R. Hamon, Jr., Mayor
ATTEST:

Melissa Martin, City Clerk

Attachment 2

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Attachment 2

Exhibit E
Paso Robles Municipal Airport
Taxiway A Rehabilitation
Construction and Completion Phase
Tartaglia Engineering
Fee Work-Up
Principal In
Charge
Licensed
Civil
Licensed
Survey
Eng./Surv.

Tech. III
Eng./Surv.

Tech. II
Eng./Surv.

Tech. I Clerical Survey 1-Man
Inspect.

Day ST
Inspect.

Night ST
Inspect.

OT
Prof.

Travel Mileage Per-Diem Total
Task Description $243.00 $205.00 $185.00 $144.00 $118.00 $95.00 $76.00 $250.00 $168.00 $182.00 $231.00 $114.00 $0.70 $237.00 A Management of team and work 36.0 28.0 18.0 $15,856.00 B Pre-Construction Conference 10.0 10.0 10.0 $5,920.00
C Construction management 46.0 288.0 116.0 128.0 172.0 38.0 $121,254.00 D Construction observation 600.0 240.0 128.0 $174,048.00 E Survey control and review 1.0 13.0 9.0 14.0 $7,172.00 F Construction materials testing $189,855.00
Supplies, Printing, Postage $1,495.00
Sub-Total $515,600.00
A Management of team and work 8.0 2.0 $2,096.00
B Final pay quantity & adjustment 12.0 12.0 $4,476.00
C Prepare As-Built plans 6.0 13.0 18.0 20.0 12.0 $10,215.00 D&E Contractor close out 4.0 $820.00
F Final Engineer's Report 13.0 34.0 19.0 4.0 2.0 8.0 $14,135.00 G&H Final documentation 3.0 6.0 4.0 $2,263.00
Supplies, Printing, Postage $195.00
Sub-Total $34,200.00
$3,450,000.00
$549,800.00
1 2
3 4
5 5
RPR Time: Assumed 86 working days. 28 Night Shifts - 10 hour shifts. 56 days shifts.

RPR Time: 2 on-site inspectors for paving shifts. 2 night shifts and 7 day shifts. Paving days assumed to be 12 hours.

Tartaglia Engineering will serve this project from the Atascadero, CA and Grover Beach, CA offices Tartaglia does not mark-up third party invoicing, printing, shipping, supplies, etc.

Notes and Assumptions
Task items line up, one for one, with tasks identified in the Scope of Services portion of Exhibit A.

Item with ** to be performed by a subconsultant.

Total; Construction and Completion Phases:

Preliminary Cost of Construction:

Services as a Percentage of
Construction

15.9%
2 Completion Phase
1 Construction Phase
Earth Systems Pacific: Proposal dated July, 2026
Exhibit E (Fee Work-Up) 1 of 1
Attachment 3

Exhibit C Hourly Rates of Compensation

The following hourly rates apply to this contract. Values indicated include direct salary / hourly compensation, overhead costs, and necessary tools, equipment, or technology necessary to perform work, unless otherwise identified.

Position Hourly Rate
Principal-In-Charge.............................................................................................................. $243.00 Licensed Land Surveyor ...................................................................................................... $185.00 Registered Civil Engineer.................................................................................................... $205.00 Project Manager................................................................................................................... $165.00 Environmental Coordinator / CPESC.................................................................................. $118.00 Engineer / Survey Technician III......................................................................................... $144.00 Engineer / Survey Technician II .......................................................................................... $118.00 Engineer / Survey Technician I.............................................................................................. $95.00 Clerical................................................................................................................................... $76.00 Professional Travel Time..................................................................................................... $114.00 Inspector: Day, Straight Time .................................................................................. $168.00 Day, Overtime ......................................................................................... $201.00 Night, Straight Time ............................................................................... $182.00 Night, Overtime....................................................................................... $231.00 (Minimum night shift = 4 hours)
Survey Party: One Man.................................................................................................. $250.00 Two Man ................................................................................................. $344.00 (Compensation to field surveyors performing construction staking and layout, and to construction inspectors, shall be in accordance with prevailing wage requirements.) Direct expenses shall be reimbursed as follows:

Mileage ...................................................................................................................... $0.70 per mile Per diem .......................................................................................................... $224.00 per man-day Reproduction, postage, express mail shipping, advertising.................................................. At Cost Sub-consultant services......................................................................................................... At Cost Supplies including monuments and construction staking material....................................... At Cost Permit, plan check, and agency inspection fees.................................................................... At Cost Tartaglia Engineering DIR# 1000049201
Fee Schedule subject to change after March 31, 2027
Attachment 3

July 9, 2026
Mr. Jason Hargreaves
Tartaglia Engineering
P.O. Box 476
Pismo Beach, CA 93448
PROJECT: PASO ROBLES AIRPORT

REHABILITATE TAXIWAY A

PASO ROBLES, CALIFORNIA
SUBJECT: Request for Professional Service Fee Proposal for Construction Phase Quality Assurance and Acceptance Materials Testing Services, from Tartaglia Engineering, dated July 1, 2026
Dear Mr. Hargreaves:

Earth Systems Pacific (Earth Systems) is pleased to present this cost proposal for the City of Paso Robles’ Paso Robles Airport Rehabilitate Taxiway A project. This proposal has been prepared per the issued Request for Proposal (RFP) dated July 1, 2026. We understand that the project is planned to begin construction in September or October of 2026 and that it will be subject to Prevailing Wage Law.

We understand that the project includes rehabilitation of Taxiway A between Taxiway B and Runway 19 and auxiliary improvements, including surface treatments, electrical improvements and striping. A minimum of 28 shifts of night work are anticipated.

This proposal is based upon our review of the RFP and project plans and specifications. The attached fees are for typical QA testing and reporting, with management oversight of our personnel. We understand that Tartaglia Engineering will provide an overall Resident Project Representative (RPR); we have assumed that our services will be coordinated by the RPR.

Our estimate of fees has been split up between the project’s two planned phases. The preconstruction and project administration task scope includes scheduling and resource management, budget and scope monitoring, and any necessary security training prior to construction beginning. It also includes general test reporting, DIR reporting, and project oversight. The proposed preconstruction task includes attendance at the preconstruction meeting as well as the QA/QC Workshop. Also included is time to review the Contractor’s Quality Control Program submittal, the P-401 mix design submittal, the P-610 mix design submittal and material submittals for P-209 and P-154 submittals. The proposed QA material testing task will include performing necessary quality acceptance tests in accordance with the project plans and Attachment 3

Paso Robles Airport (KPRB) 2 July 9, 2026
Rehabilitate Taxiway A
Paso Robles, California
specifications and applicable test methods during project construction, reporting of test results to the Engineer, communication of non-compliance issues, and other necessary tasks associated with QA testing oversight.

Our proposed cost estimate of fees is attached to this proposal.

CONDITIONS
The fees and conditions of this proposal will remain in effect for the duration of this project, assuming it is completed by December 31, 2026. Our technicians and inspectors will attempt, wherever possible, to combine inspections or test multiple items during our site visits, in order to keep the final bill as low as possible. However, as the presence of our personnel at the site will depend upon the contractor’s schedule, and the progress of the work, the fees in the attached document are to be considered as estimates only and shall not be construed as guaranteed maximum fees. The invoices will reflect the actual amount of time spent and service performed and may be greater or less than the estimated amounts. Services will be invoiced on a monthly basis. Based on our current workload, the lead engineer for this project will be the undersigned.

Professional services are expected to be provided largely during regular working hours (i.e., Monday through Friday, 0700 through 1700). All field services provided at night will be billed at overtime rates. Field services provided during regular working hours (if any) will be billed in 1- hour increments, with a minimum of 4 hours per visit. Professional time (field and office) is billed in 0.5-hour increments.

The client is to supply the latest plans and specifications and to notify us of any changes pertinent to the performance of our testing and observation services. The client or client's agent is responsible for contacting this firm when the project begins, and when specific testing services are required. Should unforeseeable conditions require a different approach or additional work, this fee quotation may need to be revised. We would notify the client of any major changes in the proposed scope of work prior to initiating such a change.

Charges for retests or reinspections due to failing results, or when tests or inspections are requested but the contractor is not ready and does not cancel our personnel, are also not included in the estimate and will be billed at hourly rates. This firm will not be responsible for backcharging the contractor for retests or reinspections.

If the client finds the scope of work and estimated fees satisfactory, the return of the attached Work Order will constitute authorization for work to begin. In order to upload certified payrolls to the State’s website, the project’s DIR number is necessary. Please return the attached SB 854 Attachment 3

Paso Robles Airport (KPRB) 3 July 9, 2026
Rehabilitate Taxiway A
Paso Robles, California
DIR and eCPR Compliance Information Request form to allow for processing of certified payroll reports. This agreement can be terminated by either party upon notification in writing. Earth Systems Pacific’s responsibility for the project will end upon completion of the services described herein or termination of the agreement unless authorization to perform additional work and agreement for payment thereof is provided by the client.

Thank you for your consideration of our firm for this project. If you have any questions or require additional information, please contact me at your convenience.

Sincerely,
Earth Systems Pacific
Sydney Johnson Robert Down, PE 70206
Project Manager Senior Vice President
Attachments: Testing and Inspection Estimate dated July 9, 2026 Work Order
Terms
Prevailing Wage and Accounts Payable Information Request Form Fee Schedule
Doc. No.: SLO-2607-030.PRP/pm
Attachment 3

PASO ROBLES AIRPORT (PRB)

REHABILITATE TAXIWAY A
PROJECT: ESP PROPOSAL NO.: SLO-2607-030.PRP
PASO ROBLES AIRPORT JULY 9, 2026

REHABILITATE TAXIWAY A

BASE BID
PRECONSTRUCTION + ADMINISTRATION
PRINCIPAL PROFESSIONAL 4 HR $265.00 $ 1,060.00
SENIOR PROFESSIONAL 16 HR $220.00 $ 3,520.00
PROJECT PROFESSIONAL 8 HR $195.00 $ 1,560.00
TECHNICIAN 6 HR $120.00 $ 720.00
ASSOCIATE PROFESSIONAL 4 HR $240.00 $ 960.00
DIR CERTIFIED PAYROLL 14 EA $100.00 $ 1,400.00
MILEAGE 320 MI $1.00 $ 320.00
SUBTOTAL BASE BID: PRECONSTRUCTION + ADMINISTRATION $ 9,540.00 PHASE 1

QUALITY ASSURANCE (QA) TESTING
LABORATORY - AASHTO CERTIFICATION 1 EA $1,850.00 $ 1,850.00 MOBILE LAB MOBILIZATION/DEMOBILIZATION 2 EA $825.00 $ 1,650.00 IGNITION OVEN CALIBRATION 1 EA $850.00 $ 850.00
TECHNICIAN - P-401 CONTROL STRIP 16 HR $175.00 $ 2,800.00 TECHNICIAN - P-401 CONTROL STRIP - OVERTIME 8 HR $262.50 $ 2,100.00 BINDER CONTENT - P-401 CONTROL STRIP 6 EA $275.00 $ 1,650.00 SIEVE ANALYSIS - IGNITION RESIDUE - P-401 CONTROL STRIP 6 EA $285.00 $ 1,710.00 MAT AND JOINT CORES - P-401 CONTROL STRIP 12 EA $125.00 $ 1,500.00 TECHNICIAN - P-401 PRODUCTION - NIGHT WORK 64 HR $175.00 $ 11,200.00 TECHNICIAN - P-401 PRODUCTION - NIGHT WORK - OVERTIME 32 HR $262.50 $ 8,400.00 P-401 PRODUCTION LAB TESTING 5 LOT $555.00 $ 2,775.00
TECHNICIAN - P-610 SAMPLING/RETURN SAMPLES TO LAB NEXT DAY 20 HR $175.00 $ 3,500.00 CONCRETE COMPRESSION TESTS 4 SET $250.00 $ 1,000.00
TECHNICIAN - SOILS/EARTHWORK 204 HR $175.00 $ 35,700.00 TECHNICIAN - SOILS/EARTHWORK - NIGHT WORK 132 HR $175.00 $ 23,100.00 TECHNICIAN - SOILS/EARTHWORK - OVERTIME 36 HR $262.50 $ 9,450.00 TECHNICIAN - UNSUITABLE SUBGRADE 16 HR $175.00 $ 2,800.00 MAX DENSITY/OPTIMUM MOISTURE CURVE 10 EA $340.00 $ 3,400.00 SIEVE ANALYSIS 6 EA $250.00 $ 1,500.00
R-VALUE 2 EA $325.00 $ 650.00
DENSITY TESTS 60 EA $10.00 $ 600.00
SENIOR PROFESSIONAL 40 HR $220.00 $ 8,800.00
PRINCIPAL PROFESSIONAL 12 HR $265.00 $ 3,180.00
LAB CHARGE - MOBILE LAB 4 DAY $900.00 $ 3,600.00
MILEAGE 5520 MI $1.00 $ 5,520.00
SUBTOTAL BASE BID: QUALITY ASSURANCE (QA) TESTING $ 139,285.00 TOTAL: BASE BID $ 148,825.00

COST ESTIMATE
Attachment 3

PASO ROBLES AIRPORT (PRB)

REHABILITATE TAXIWAY A
PHASE 2

QUALITY ASSURANCE (QA) TESTING
TECHNICIAN - P-401 PRODUCTION - NIGHT WORK 32 HR $175.00 $ 5,600.00 TECHNICIAN - P-401 PRODUCTION - OVERTIME 16 HR $255.00 $ 4,080.00 P-401 PRODUCTION LAB TESTING 2 LOT $555.00 $ 1,110.00
TECHNICIAN - SOILS/EARTHWORK 64 HR $170.00 $ 10,880.00
TECHNICIAN - SOILS/EARTHWORK - NIGHT WORK 32 HR $175.00 $ 5,600.00 TECHNICIAN - SOILS/EARTHWORK - OVERTIME 8 HR $255.00 $ 2,040.00 MAX DENSITY/OPTIMUM MOISTURE CURVE 6 EA $340.00 $ 2,040.00 SIEVE ANALYSIS 4 EA $250.00 $ 1,000.00
DENSITY TESTS 30 EA $10.00 $ 300.00
SENIOR PROFESSIONAL 16 HR $220.00 $ 3,520.00
PRINCIPAL PROFESSIONAL 4 HR $265.00 $ 1,060.00
LAB CHARGE - MOBILE LAB 2 DAY $900.00 $ 1,800.00
DIR CERTIFIED PAYROLL 4 EA $100.00 $ 400.00
MILEAGE 1600 MI $1.00 $ 1,600.00
SUBTOTAL ADD. ALT A: QUALITY ASSURANCE (QA) TESTING $ 41,030.00 TOTAL: ADDITIVE ALTERNATE A $ 41,030.00
PHASE 1: $ 148,825.00
PHASE 2 $ 41,030.00
TOTAL: $ 189,855.00

COST ESTIMATE SUMMARY
Attachment 3

W O R K O R D E R
EARTH SYSTEMS PACIFIC (“CONSULTANT”) AND CLIENT AGREE TO A WORK ASSIGNMENT FOR EARTH SYSTEMS PACIFIC AS FOLLOWS:

Date: July 9, 2026 Doc. No.: SLO-2607-030.PRP
Name of Project: PASO ROBLES AIRPORT – REHABILITATE TAXIWAY A Order Received by: Sydney Johnson
Client Name: Tartaglia Engineering, Attn.: Mr. Jason Hargreaves Client Address: PO Box 476, Pismo Beach, California 93448 Location of Project: Paso Robles Airport (KPRB), Paso Robles, California Scope of Services: Per Proposal dated July 9, 2026
Fees to be Charged: Per Proposal dated July 9, 2026*
I have read and agree to all terms of this document,
including the attached terms for services (7/2017).

AGREED TO AND ACCEPTED:

Earth Systems Pacific
DIR Public Works Registration No. 1000003643
Client (Party responsible for payment)
Robert W. Down, PE 70206
Senior Vice President by Authorized Representative (please print) July 9, 2026
Date Signature and Title
Date

PLEASE RETURN A SIGNED COPY
TO EARTH SYSTEMS PACIFIC Telephone Number
Email Address
IF THE CLIENT DOES NOT OWN THE PROPERTY, PLEASE FILL IN THE PROPERTY OWNER'S NAME AND ADDRESS:

Name:

Address:
* Rates are subject to change due to changes in prevailing wage law or its application. In the event that it is determined or alleged that Prevailing Wage Law applies to any additional aspect of the project, the client agrees to pay Earth Systems Pacific (Consultant) any and all additional compensation necessary to adjust Consultant's wage, to pay any penalties that may be levied against Consultant due to alleged noncompliance with the Prevailing Wage Law, and to pay for apprentices, supervision, certified payrolls, and other administrative costs as necessary to comply with Prevailing Wage Law. In the event that work thought to be subject to prevailing wage is determined not to be subject to prevailing wage, no refund of fees will be given. July 2026 Fee Schedule Attachment 3

_

TERMS FOR SERVICES

1. INVESTIGATION, MONITORING & INSPECTION If the services include monitoring or inspection of soil, construction and/or materials, Client shall authorize and pay for Consultant to provide sufficient observation and professional inspection to permit Consultant to form opinions according to accepted statistical sampling methods as to whether the work has been performed in accordance with recommendations. Such opinions, while statistically valid, do not guaranty uniformity of conditions or materials. Similarly, soils and geology investigations do not guaranty uniformity of subsurface conditions. Client hereby represents and warrants that it has provided and shall provide to Consultant all information and sufficient advance notice necessary in order for Consultant to perform the appropriate level of services. No statement or action of Consultant can relieve Client’s contractors of their obligation to perform their work properly.

Consultant has no authority to stop the work of others.

2. SITE ACCESS & UTILITIES Client has sole responsibility for securing site access and locating utilities.

3. BILLING AND PAYMENT Client will pay Consultant the proposal amount or, if none is stated, according to the fee schedule attached to the proposal. Payment is due on presentation of invoices, and is delinquent if Consultant has not received payment within thirty (30) days from date of an invoice. Client will pay an additional charge of 1 1/2 (1.5) percent per month (or the maximum percentage allowed by law, whichever is lower) on any delinquent amount, excepting any portion of the invoiced amount that is disputed in good faith. Each payment will first be applied to accrued interest, costs and fees and then to the principal unpaid amount. All time spent and expenses incurred (including any in-house or outside attorney's fees) in connection with collection of any delinquent amount will be paid by the Client to Consultant per Consultant's current fee schedule. Services to be performed by Consultant hereunder which are not set forth in this proposal and/or Work order are additional services. Any additional services provided by Consultant shall be subject to the terms of this contract and charged per Consultant’s current fee schedule.

4. OWNERSHIP OF DOCUMENTS Consultant owns all documents it creates and grants Client limited license to use the documents for the purposes stated in the documents. Consultant reserves the right to withhold delivery of documents to Client until payment in full of current invoices has been received.

5. TERMINATION This agreement may be terminated by either party effective 7 days from the date of written notice, or if the client suspends the work for three (3) months. In the event of termination, Consultant will be paid for services performed prior to the date of termination plus reasonable termination expenses. If Consultant has not received payment for any invoice within 30 days from the date of the invoice, or in the event of anticipatory breach by Client, Consultant may suspend performance of its services immediately and may terminate this contract.

6. RISK ALLOCATION In order for Client to obtain the benefit of a fee which includes a lesser allowance for compensating Consultant for its litigation risk, Client agrees to indemnify, hold harmless and defend Consultant, its agents, employees, or officers, from and against any and all loss, claim, expenses, including attorney’s fees, injury, damages, liability or costs arising out of non-design services (i.e., services other than as defined by Civil Code Section 2784) performed by Consultant on this project, except where such loss injury, damage, liability, cost, expenses or claims are the result of the sole negligence or willful misconduct of Consultant. Regarding any loss due to the negligence or willful misconduct of Consultant, or any loss due to design defects, Client agrees to limit the total aggregate liability of Consultant, its agents, employees, and officers to Client, and to all construction contractors and subcontractors on the entire project, to the greater of $25,000.00 or total fees charged by Consultant. Client further agrees to require of the contractor and his subcontractors an identical limitation of Consultant's liability for damage suffered by the contractor or the subcontractor arising from any alleged breach or negligence of Consultant. You should consult with an attorney experienced in construction contracts and litigation regarding this provision.

7. HAZARDOUS MATERIALS Consultant is responsible only for hazardous materials brought by Consultant onto the site. Client retains ownership and responsibility in all respects for other hazardous materials and associated damage.

8. THIRD PARTIES AND ASSIGNMENT This Contract is intended only to benefit the parties hereto. No person who is not a signatory to this Contract shall have any rights hereunder to rely on this Contract or on any of Consultant’s services or reports without the express written authorization of Consultant. This Contract shall not be assigned by Client without the Consultant’s written consent. This Contract is binding on any successor companies to Client or Consultant, and on the surviving corporation in the event of a merger or acquisition.

9. GOVERNING LAW, SURVIVAL AND FORUM SELECTION The contract shall be governed by laws of the Federal Government. If any of the provisions contained in this agreement are held invalid, the enforceability of the remaining provisions will not be impaired. Limitations of liability, indemnities, representations and warranties by Client will survive termination of this agreement. The signatories represent and warrant that they are authorized by the entities on whose behalf they sign to enter into this contract and that their principals have filed fictitious business name statements, if required. All disputes between Consultant and client related to this agreement will be submitted to the court of the county where Consultant's principal place of business is located and client waives the right to remove the action to any other county or judicial jurisdiction.
7/2017 HANDWRITTEN CHANGES NOT VALID
Attachment 3

Prevailing Wage and Accounts Payable Information Request Thank you for this opportunity to be of service on your public works project. Please complete and return this form to allow us to comply with California’s prevailing wage requirements, and to prepare Earth Systems’ invoices in accordance with your organization’s billing requirements in a timely manner. Thank you! Legal Name of Earth Systems
PWC Registration No.

Earth Systems Pacific
1000003643
Earth Systems Project No.

PUBLIC WORKS PROJECT REGISTRATION INFORMATION:

CLIENT’S PROJECT NAME
DIR PROJECT ID (PWC-100)

APPLICABLE BID

ADVERTISEMENT DATE
CLIENT’S REPRESENTATIVE FOR

DIR PROJECT ID INFORMATION
Name:

E-mail:

Phone No.:

LABOR COMPLIANCE

PROGRAM (LCP) APPLICABLE
TO THIS PROJECT?
Yes or No
If yes, please confirm if Earth Systems will be subject to the LCP and provide a copy of the LCP manual to Earth Systems before start of project.

CLIENT’S BILLING REQUIREMENTS:

PURCHASE ORDER NO.
(if applicable)

ADDITIONAL INFORMATION

REQUIRED ON INVOICES

SPECIFY ANY ADDITIONAL

FORMS OR BILLING FORMATS

REQUIRED TO BE SUBMITTED

WITH INVOICES
(please attach example)

ACCOUNTS PAYABLE CONTACT

INFORMATION
Name:

E-mail:

Phone No.:

INVOICE DELIVERY METHOD E-mail:

Mailing Address:

Date
Doc. No.: SLO-2607-030.PRP/pm
Attachment 3

JULY 1, 2026 FEE SCHEDULE CC-2606-001.FEE

FEE SCHEDULE
(Effective July 1, 2026)
This schedule presents rates for professional and technical services in the fields of geotechnical engineering, engineering geology, environmental consulting, construction observation and testing, and special inspection. Listed are charges for services most frequently performed by Earth Systems. Additional services not listed are available and can be discussed upon request; fixed-fee quotes for some services can also be provided upon request. To discuss scope of work and fees for a specific project, please contact our office.

PERSONNEL HOURLY RATE
Principal Professional................................................................................................................................................................... $265.00 Associate Professional ................................................................................................................................................................. $240.00 Senior Professional ...................................................................................................................................................................... $220.00 Project Professional ..................................................................................................................................................................... $195.00 Staff Professional......................................................................................................................................................................... $170.00 Special Inspector, Prevailing Wage*............................................................................................................................................ $185.00 Technician, Prevailing Wage* ...................................................................................................................................................... $175.00 Field Services Supervisor ............................................................................................................................................................. $175.00 Technical Assistant....................................................................................................................................................................... $130.00 Special Inspector.......................................................................................................................................................................... $130.00 Technician .................................................................................................................................................................................... $120.00 Clerical/Administrative ................................................................................................................................................................ $100.00 * Technician/Inspector Classifications as defined by the State of California Department of Industrial Relations.

BASIS OF CHARGES - GENERAL

1. Field services for regular work days for non-prevailing wage projects are subject to a 2-hour minimum charge.

2. Work performed on Saturdays, night work, and for premium hours (before 7 a.m., after 5 p.m. or more than 8 hours in one day) for personnel are at time and 1/2. Work performed on Sundays and holidays, or when time exceeds 12 hours in one day, is at double time. Work performed on weekends, holidays, and when work starts outside of regular business hours is subject to a 4- hour minimum charge.

3. Charges are calculated in one-hour increments and accumulate on a portal-to-portal basis.

4. A 2-hour cancellation charge applies if scheduled inspection or testing is cancelled after 3 p.m. the day prior to the scheduled work.

5. Mileage is invoiced at a rate of $1.00/mile (portal-to-portal).

6. Nuclear density gauge charge: $10.00/test.

7. Weekly special inspection report charged at staff engineer hourly rate.

8. Client or project portal management, administration, uploads, and related coordination will be billed at applicable personnel rates.

9. Subcontracted services, materials, rental equipment, out-of-town travel, and expenses are charged at cost plus 20%. Fixed per diem rates for specific projects can be provided upon request.

10. Report copies: $30.00 each (minimum). Posting of electronic documents to project websites will be charged at clerical/administrative services rate.

11. Invoices are payable upon presentation. Invoices 30 days past due are subject to a service charge of 1.5% per month. Payments using a credit card will be assigned a 3% surcharge.

12. Rates are effective through December 31, 2026.

PREVAILING WAGE PROJECTS

1. Field services for regular work days for prevailing wage projects are subject to a 4-hour minimum charge, and after 4 hours will be billed in 1-hour increments.

2. The prevailing wage (PW) rates presented herein are based on current rates established by the Department of Industrial Relations (DIR). If, during the course of the project, prevailing wage rates are increased by DIR, rates are subject to adjustment.

Also, please note requirements concerning overtime, shift work, travel time, holidays, and other factors can vary for different classifications of work under prevailing wage regulations.

3. Electronic submittal of Certified Payroll to DIR for prevailing wage projects will be assessed a fee of $100.00/week. Additional time required to address specific requests related to DIR/Labor Compliance will be charged at the clerical/administrative service rates.

Attachment 3

JULY 1, 2026 FEE SCHEDULE CC-2606-001.FEE

FEE SCHEDULE - MATERIALS TESTING
(Effective July 1, 2026)

BASIS OF CHARGES
Rates for field work such as materials sampling, construction inspection, and field evaluation will be in accordance with the Personnel Rates listed in the basic Fee Schedule. The below listed rates apply to standard ASTM test methods. An additional hourly charge (technician rate) will be applied for cutting, capping, or other preparation of non-standard samples and, where noted, for steel samples.

SOILS
All prices are based on California and Modified California sample sizes (2” – 2.5” diameter) unless noted otherwise. Preparation of 3” diameter samples adds $20.00. Testing of contaminated soil will be per quote. Contaminated samples will be returned to sender for proper disposal.

Atterberg Limits: Liquid Limit or Plastic Limit ........................................................................................................................... $160.00 Atterberg Limits: Plasticity Index .............................................................................................................................................. $275.00 California Bearing Ratio, 3 Points; Including Ref Maximum Density......................................................................................... $700.00 California Bearing Ratio, 9 Points; Including Ref Maximum Density......................................................................................... $975.00 Consolidation, One Dimensional............................................................................................................................................... $260.00 Consolidation, Timed, Per Point ............................................................................................................................................... $110.00 Corrosivity Tests.....................................................................................................................................................................Per Quote Direct Shear, 3 Points Minimum .............................................................................................................................................. $315.00 Expansion Index Test ................................................................................................................................................................ $230.00 Maximum Density and Optimum Moisture: 4” Mold ............................................................................................................... $340.00 Maximum Density and Optimum Moisture: 6” Mold ............................................................................................................... $340.00 Maximum Density and Optimum Moisture: California Impact................................................................................................. $350.00 Moisture and Unit Weight Determination, from Ring Samples.................................................................................................. $55.00 Moisture Only ............................................................................................................................................................................. $40.00 Permeability Tests, Constant Head or Falling Head...............................................................................................................Per Quote R-Value...................................................................................................................................................................................... $355.00 R-Value, CA State Highway/Set of 3, Cement, Lime, Other Additives....................................................................................... $975.00 Hydrocollapse Potential............................................................................................................................................................ $175.00 Sieve/Hydrometer Analysis, Assumed Specific Gravity, with 200 Wash................................................................................... $325.00 Sieve Analysis, Aggregate Base/Subbase .................................................................................................................................. $230.00 Sieve Analysis 200 Wash Only................................................................................................................................................... $135.00 Sieve Analysis with Wash.......................................................................................................................................................... $230.00 Sieve Analysis, Oversize Material.............................................................................................................................................. $250.00 Specific Gravity ......................................................................................................................................................................... $185.00 Swell Test, Undisturbed ............................................................................................................................................................ $215.00 Swell Test, Remolded................................................................................................................................................................ $240.00 Unconfined Compressive Strength, Untreated......................................................................................................................... $185.00 Unconfined Compressive Strength, Lime or Cement Treated Material.................................................................................... $190.00

THERMAL RESISTIVITY TESTS
Concrete, 1 Point with Moisture Content (Requires Special Collection Process) ................................................................. Per Quote Field Testing using Thermal Resistivity Meter ...................................................................................................................... Per Quote Soil, Per Moisture Point, Per Sample .................................................................................................................................... Per Quote Soil, 3 Moisture Points with Dry‐Out Curve, Per Sample ...................................................................................................... Per Quote

CONCRETE AGGREGATE
Abrasion, L.A. Rattler, 100 and 500 revolutions, ASTM C131 (Small Size Aggregate)............................................................... $310.00 Abrasion, L.A. Rattler, 100 and 500 Revolutions, ASTM C535 (Large Size Aggregate).............................................................. $560.00 Absorption, Coarse Aggregate .................................................................................................................................................. $265.00 Absorption, Fine Aggregate ...................................................................................................................................................... $265.00 Clay Lumps and Friable Particles in Aggregate ......................................................................................................................... $145.00 Cleanness Value of Coarse Aggregate....................................................................................................................................... $195.00 Crushed Particles, Each Size...................................................................................................................................................... $160.00 Durability Index, Coarse or Fine Aggregate .............................................................................................................................. $210.00 Flat and Elongated Particles in Aggregate ................................................................................................................................ $125.00 Organic Impurities in Fine Aggregate........................................................................................................................................ $110.00 Potential Reactivity of Aggregate by Chemical Method, Each Size....................................................................................... Per Quote Sand Equivalent ........................................................................................................................................................................ $180.00 Attachment 3

JULY 1, 2026 FEE SCHEDULE CC-2606-001.FEE
CONCRETE AGGREGATE (Continued)
Sieve Analysis, Washed............................................................................................................................................................. $230.00 Soundness, Sodium Sulfate, 5 Cycles........................................................................................................................................ $510.00 Specific Gravity, Coarse Aggregate ........................................................................................................................................... $160.00 Specific Gravity, Fine Aggregate ............................................................................................................................................... $300.00 Uncompacted Void Content of Fine Aggregate, with Fine Aggregate Angularity..................................................................... $290.00 Unit Weight of Aggregate ......................................................................................................................................................... $160.00

CONCRETE CYLINDERS, BEAMS AND CORES
Compression Test/Storage of Cast Cylinders (4x8)..................................................................................................................... $50.00 Compression Test/Storage of Cast Cylinders (6x12)................................................................................................................... $80.00 Compression Test of Cored Samples, Cored at Laboratory ...................................................................................................... $120.00 Compression Test of Cores Delivered by Others ...................................................................................................................... $100.00 Compression Test of Lightweight Concrete ................................................................................................................................ $60.00 Density of Concrete Cylinders..................................................................................................................................................... $85.00 Density of Hardened Concrete.................................................................................................................................................. $115.00 Flexural Strength, Simple Beam with Third Point Loading........................................................................................................ $190.00 Grading of Shotcrete Cores....................................................................................................................................................... $490.00 Sample Storage, Monthly Per Sample ........................................................................................................................................ $45.00 Shrinkage, Set of 3 .................................................................................................................................................................... $420.00 Unit Weight of Lightweight Concrete ....................................................................................................................................... $160.00 Environmental Recycle Fee/Form Stripping, Per Shotcrete Panel/Beam ................................................................................... $75.00

MASONRY
Absorption of Block, Set of 3 .................................................................................................................................................... $265.00 Compression Test, 2” x 4” Mortar Cylinders............................................................................................................................... $40.00 Compression Test, 3” x 3” x 6” Grout Samples........................................................................................................................... $60.00 Compression Test on Block, Set of 3......................................................................................................................................... $265.00 Compression Test on Grouted Prisms, Includes Cutting........................................................................................................... $200.00 Compression Test on Masonry Cores ......................................................................................................................................... $85.00 Coring of Grouted Masonry by Subcontractor.................................................................................................................... Cost + 20% Masonry Shrinkage, Set of 3 ..................................................................................................................................................... $300.00 Moisture Content of Block as Received, Set of 3 ...................................................................................................................... $150.00 Shear Test on Masonry Cores, 2 faces...................................................................................................................................... $185.00 Specific Gravity and Unit Weight of Block, Set of 3 .................................................................................................................. $225.00

FIREPROOFING
Fireproof Bond Test .............................................................................................................................................................. Per Quote Fireproofing Density Test.......................................................................................................................................................... $125.00

ASPHALT CONCRETE
Bulk Specific Gravity of Compacted Specimens and Core Samples .......................................................................................... $125.00 Compaction of Lab Samples, CA Kneading Compactor, Set of 3............................................................................................... $240.00 Compaction of Lab Samples, CA Kneading Compactor, Set of 5............................................................................................... $400.00 Compaction of Lab Samples, Marshall Method Set of 3 – (50 blows/side) .............................................................................. $250.00 Compaction of Lab Samples, Marshall Method Set of 3 – (75 blows/side) .............................................................................. $295.00 Extraction of Oil from A.C. Mixtures..................................................................................................................................... Per Quote Extraction of Oil from Rubberized Mixtures......................................................................................................................... Per Quote Gyratory Compactor, Per Set of Field Mixed Asphalt ............................................................................................................... $495.00 Hamburg Wheel Tracker Test, Per Set of Field Mixed Asphalt ................................................................................................. $890.00 Ignition Oven Binder Content, After Initial Correction Value is Determined............................................................................ $275.00 Ignition Oven Binder Content Correction Value Per Mix Design, Average of 3 ........................................................................ $850.00 Ignition Oven Gradation Correction Value, Per Mix Design...................................................................................................Per Quote Moisture Content........................................................................................................................................................................ $50.00 Sieve Analysis of Extracted Aggregate ...................................................................................................................................... $285.00 Sieve Analysis of Ignition Oven Residue.................................................................................................................................... $270.00 Specific Gravity, Theoretical Maximum, Rice Method.............................................................................................................. $180.00 Stability and Flow, Marshall Apparatus, Set of 3 ...................................................................................................................... $295.00 Stabilometer, Hveem S-Value, Set of 3..................................................................................................................................... $350.00 Attachment 3

JULY 1, 2026 FEE SCHEDULE CC-2606-001.FEE

REINFORCING AND STRUCTURAL STEEL
Bend Test of Welded Specimen, Sample Preparation Not Included........................................................................................... $75.00 Pipe Flattening Test, Sample Preparation Not Included ............................................................................................................. $75.00 Reinforcing Steel Coupler Tensile and Slip Tests....................................................................................................................... $175.00 Structural Steel Bend Test, Sample Preparation Not Included ................................................................................................... $75.00 Structural Steel Machining/Sample Preparation ................................................................................................................. Cost + 20% Structural Steel Tensile Test, Sample Preparation Not Included ................................................................................................ $75.00 Tensile and Bend Tests of Reinforcing Bar, #2 - #9................................................................................................................... $200.00 Tensile and Bend Tests of Reinforcing Bar, #10 - #18 ............................................................................................................Per Quote

BOLT TESTS
Bolt Tests, Chemical or Mechanical ..................................................................................................................................... Cost + 20%

WELDER QUALIFICATION
AWS D1.1: 3/8” Plate, Per Position........................................................................................................................................Per Quote AWS D1.1: 1” Plate, Per Position ...........................................................................................................................................Per Quote AWS D1.3: Sheet Steel ...........................................................................................................................................................Per Quote AWS D1.4: Reinforcing Bar.....................................................................................................................................................Per Quote ASME/API Pipe Sections.........................................................................................................................................................Per Quote EQUIPMENT/CHARGES (Does Not Include Personnel)
110-Volt Portable Electric Generator................................................................................................................................ $120.00/Day Anchor Pull Test Equipment.............................................................................................................................................. $25.00/Hour Bailer (Disposable) with Dedicated Rope........................................................................................................................... $35.00/Each Concrete and Asphalt Concrete Coring Equipment .......................................................................................................... $280.00/Day Concrete Slab Moisture Transmission Kit .......................................................................................................................... $45.00/Each Conductivity Meter.............................................................................................................................................................. Cost + 20% Cut-Off Saw......................................................................................................................................................................... $90.00/Day DIR Compliance/eCPR .................................................................................................................................................... $100.00/Week Double Ring Infiltrometer (Per Set) .................................................................................................................................. $165.00/Day Drum Dolly .......................................................................................................................................................................... $40.00/Day Drums................................................................................................................................................................................. $90.00/Each DSA Box Posting ............................................................................................................................................................. $100.00/Week Dynamic Cone Penetrometer (DCP) .................................................................................................................................. $150.00/Day Dynamometer, In-Line Scale............................................................................................................................................. $200.00/Day Hammer Drill....................................................................................................................................................................... $65.00/Day Hand Auger/Sampler Equipment........................................................................................................................................ $65.00/Day LOCK N’ LOAD® VOC Sample Preservation System............................................................................................................ $35.00/Each Magnetic Particle Equipment............................................................................................................................................ $200.00/Day Manometer....................................................................................................................................................................... $155.00/Day Mini-Troll Groundwater Level Transducer........................................................................................................................ $115.00/Day Mobile Laboratory ................................................................................................................................................................. Per Quote Nuclear Density Equipment, Per Test ................................................................................................................................ $10.00/Each Paint Thickness/Hardness Meter ..................................................................................................................................... $140.00/Day Per Diem ................................................................................................................................................................................Per Quote Percolation Tank System and Trailer ................................................................................................................................ $260.00/Day Personal Protective Equipment Level C ................................................................................................................................. Per Quote Photo-Ionization Detector (PID)........................................................................................................................................ $100.00/Day Pulse Velocity Meter..............................................................................................................................................................Per Quote Rebound Hammer (Schmidt Hammer) ............................................................................................................................... $80.00/Day Reinforcing Steel Image (GPR) ......................................................................................................................................... $50.00/Image Reinforcing Steel Locating Equipment (DR-Meter) ........................................................................................................... $200.00/Day Reinforcing Steel Locating Equipment (GPR).................................................................................................................... $400.00/Day Safety and Specialty Equipment ............................................................................................................................................Per Quote Sampling Consumables..........................................................................................................................................................Per Quote Skidmore Bolting Calibration Equipment.......................................................................................................................... $250.00/Day Slope Inclinometer Equipment, Per Hole............................................................................................................................ $35.00/Day Soil Sampling Containers (Glass)........................................................................................................................................ $10.00/Each Soil Sampling Containers (Metal)....................................................................................................................................... $25.00/Each Submersible pump with controller .......................................................................................................................... $125.00/Well/Day Tape Extensometer........................................................................................................................................................... $200.00/Day Attachment 3

JULY 1, 2026 FEE SCHEDULE CC-2606-001.FEE
EQUIPMENT/CHARGES (Continued) (Does Not Include Personnel) Tension Equipment........................................................................................................................................................... $200.00/Day Torque Equipment............................................................................................................................................................ $200.00/Day Turbidity Meter................................................................................................................................................................. $100.00/Day Vehicle Mileage Charge ....................................................................................................................................................... $1.00/Mile Water Level Indicator.......................................................................................................................................................... $55.00/Day Water quality multi-parameter probe .............................................................................................................................. $100.00/Day Winsor Probe, Set of 3 ...................................................................................................................................................... $110.00/Day

DRILLING SERVICES
(Effective July 1, 2026)

DRILLING AND SAMPLING CAPABILITIES
 Geotechnical borings to depths of 75 feet
 Borings for hazardous materials studies
 Monitoring well and piezometer installation
 Drill crews experienced in hazardous materials drilling and sample acquisition
 Drill crews trained in 40-hour Health and Safety course (HAZWOPER)
 Steam cleaners, grout mixers, and other auxiliary
equipment available
 Standard Penetration Sampler (2" o.d. split spoon)
 Modified California Sampler (lengths: 18",
24", 3" o.d.; 2.5" i.d. rings); resin fiber,
brass, or stainless steel rings available
 Shelby Tubes (3" i.d.)

DRILLING RATES (NON-PREVAILING WAGE)

DRILLING EQUIPMENT/PERSONNEL
Gtech GT-8 with driller and helper ..................................................................................................................................$350.00/Hour Simco EP200 direct-push rig with driller and helper........................................................................................................$295.00/Hour Additional drill helper ......................................................................................................................................................$120.00/Hour Driller/Rig preparation.....................................................................................................................................................$120.00/Hour Staff Professional .............................................................................................................................................................$170.00/Hour

AUXILIARY EQUIPMENT/MISCELLANEOUS
Support truck ............................................................................................................................................... $200.00/Day + $1.00/Mile Drill support trailer............................................................................................................................................................ $150.00/Day Generator ......................................................................................................................................................................... $120.00/Day Per diem ............................................................................................................................................................................... Per Quote Traffic control equipment (signs, cones)............................................................................................................................... Per Quote

DRILLING RATES (PREVAILING WAGE)
Gtech GT-8 with driller and helper ................................................................................................................................ $455.00/Hour Simco EP200 direct-push rig .......................................................................................................................................... $400.00/Hour Additional drill helper .................................................................................................................................................... $175.00/Hour Hourly rates for prevailing wage projects are subject to adjustment based upon changes in general prevailing wage determinations or their application by the Department of Industrial Relations (DIR). Rates are effective through December 31, 2026.

BASIS OF CHARGES

1. Minimum drill time is 4 hours. Drill crew overtime (hours more than 8 hours a day) and Saturday work are 1.5 times the hourly rate. Sunday work is two times the hourly rate. Holiday work is per quote.

2. Rates for 3-man crew available on request.

3. Assembly and demobilization of materials are charged at the drill helper hourly rate.

4. Subcontractors are charged on a cost plus 20% basis.

5. Materials are charged on a cost plus 20% basis.

6. Drilling in material that causes more than normal wear to the equipment may be subject to additional charges. The client will be notified prior to drilling in such material.

7. Earth Systems Pacific’s drillers and drill crews have been trained in the 40-hour course developed by the EPA and will satisfy the Federal OSHA requirements (29-CFR 1910-120) for personnel working on sites containing hazardous materials.

8. Drilling jobs must be confirmed a minimum of 48 hours prior to the start of work. Jobs cancelled less than 48 hours prior to the start of work will be subject to the 4-hour minimum charge, plus any charges for material acquisition, rig preparation, etc., that have been incurred.

9. The client is responsible for the accurate location of all subterranean structures and utilities, and agrees to waive any claim against Earth Systems Pacific for damage done to subterranean structures and utilities not identified or accurately located. The client also agrees to obtain free access to the site for all equipment and personnel necessary for Earth Systems Pacific to perform the work.

Attachment 3

JULY 1, 2026 FEE SCHEDULE CC-2606-001.FEE

EXPERT WITNESS SERVICES
(Effective July 1, 2026)
The following rates apply to deposition testimony, arbitration testimony, hearings and court appearances.

HOURLY CHARGES FOR PERSONNEL
Principal Professional ........................................................................................................................ $500.00 Associate Professional....................................................................................................................... $425.00 Senior Professional............................................................................................................................ $375.00 Project Professional........................................................................................................................... $300.00 Staff Professional............................................................................................................................... $250.00 Clerical/Admin Services..................................................................................................................... $150.00

SPECIAL SERVICES
Deposition ................................................................................................................................ $500.00/Hour Arbitration................................................................................................................................ $500.00/Hour Court Appearance/Hearings............................................................................................. $2,000.00/1/2 Day Standby to Appear.................................................................................................................. $2,000.00/Day

BASIS OF CHARGES

1. Hourly rates are charged during investigation, analysis, consultation, and preparation services.

2. Estimated deposition fee payable in advance by party requesting deposition. The difference between advance payment and final fee to be billed or refunded in accordance with the fee and billing information in this schedule. Fee for reviewing deposition transcript will be billed at hourly rates to the party requesting the review.

3. Minimum 1/2 day charge will apply to court appearances and hearings. Time extending through the noon hour will be subject to the full day charge of $4,000.00.

4. Days, or portions thereof, reserved for appearances at hearings, court, or arbitrations, during which we are not required to be away from our offices will be subject to a standby charge of $750.00. Standby at other locations will be charged at the general hourly rates.

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Attachment 4

Council Agenda Report
From: Kirk Gonzalez, Utilities Engineering Manager
Subject: Second Reading by Title Only and Adoption of Ordinance No. 1172 Amending the El Paso de Robles Municipal Code Chapter 14.02 for AB 1572 Compliance 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.However, if it is a project the adoption of the Ordinance is categorically exempt from the California Environmental Quality Act pursuant to CEQA Guidelines sections 15307 (Class 7 – Actions by Regulatory Agencies for Protection of Natural Resources) and 15308 (Class 8 – Actions by Regulatory Agencies for Protection of the Environment)
Date: September 1, 2026
Facts

1. The City of Paso Robles owns and operates a public water system which provides potable water service to homes, businesses and institutions in the City through approximately 11,160 metered water service connections.

2. The City has adopted Chapter 14.02 of the El Paso de Robles Municipal Code to promote water conservation, prevent waste and unreasonable use of water, and protect the reliability of the City’s water supplies.

3. Assembly Bill 1572, as codified in Water Code Section 10608.14, requires the City, no later than January 1, 2027, to revise its regulations, ordinances, or policies governing water service to include a prohibition on the use of potable water for the irrigation of nonfunctional turf on specified commercial, industrial, and institutional properties, except cemeteries, and on the properties of homeowners’ associations, common-interest-developments, community service organizations and similar entities, to be phased in by the dates prescribed by statute.

4. Staff and the City Attorney have drafted proposed amendments to Chapter 14.02 of the City’s municipal code to comply with the requirements of AB 1572, which add definitions related to functional and nonfunctional turf, establish the applicable compliance dates and exceptions, and require certain property owners to certify compliance with the State Water Resources Control Board.

5. Staff has conducted public education outreach through a public webinar training (June 2026), educational outreach in the form of bill inserts, direct email notifications, water bill inserts, and a dedicated City webpage regarding non-functional turf information and resources.

6. On August 18, 2026, by a vote of 5-0, the City Council introduced for first reading, by title only, an ordinance to amend Title 14, Chapter 14.02, of the Paso Robles Municipal Code to comply with AB 1572 and held a public hearing on the ordinance.

7. The City published a summary of the ordinance at least five days prior to the meeting at which the ordinance will be considered for adoption and posted a certified copy of the proposed ordinance in the Office of the City Clerk.

Options

1. Take no action;

2. Approve the second reading by title only and adopt Ordinance 1172 N.S., amending Title 14 of the Municipal Code for compliance with AB 1572;

3. Provide alternative direction to staff.

Analysis and Conclusions
AB 1572 establishes a phased statewide prohibition on use of potable water to irrigate nonfunctional turf on certain properties. The first compliance date of January 1, 2027, applies to properties owned by local governments and public agencies. Commercial, industrial, and other institutional properties are required to comply by January 1, 2028, followed by common areas of homeowners’ associations, common-interest developments, and similar entities on January 1, 2029. Potable water may continue to be used to the extent needed to maintain the health of trees and other perennial non-turf plantings or to address immediate health and safety needs. Alternatives and recommendations for improvements needed to achieve compliance at affected City properties are being developed and staff recommendations will be forthcoming.

AB 1572 also requires public water systems to revise their water service regulations, ordinances, or policies, no later than January 1, 2027, to incorporate the requirements of AB 1572 and communicate these requirements to their customers.

The proposed amendments to Chapter 14.02 (Exhibit A) would satisfy this requirement by incorporating definitions, prohibitions, exceptions, and phased compliance dates into the City’s water conservation regulations. Staff have also conducted outreach to the City’s water customers to notify customers of the proposed changes and compliance timelines. Adoption of the proposed ordinance is recommended for achieving timely compliance with AB 1572.

Additionally, AB 1572 authorizes the State to impose fines for non-compliance. The legislation also authorizes water suppliers or local governments to also provide enforcement, however the City’s Water Department does not plan to provide enforcement at this time and instead will continue to focus on outreach and education regarding AB 1572.

The City is currently evaluating applicable turf areas owned by the City to determine compliance with the requirements of AB 1572 and identify any areas that may require additional review or action. Staff will continue coordinating this evaluation and assessing potential next steps to support compliance with the State’s requirements. Staff anticipates returning to the City Council in October with an update on the progress of the evaluation, preliminary findings, and recommended next steps for Council consideration.

Fiscal Impact
Adoption of the ordinance is not expected to result in a signification immediate impact to the Water Fund; however, AB 1572 is intended to reduce water use which will in return reduce water fund revenue.

Although accurate estimates of total non-functional turf area, or the amount of water delivered to these areas, are not known, based on available estimates, reductions in water sales revenues may exceed $500,000 per year.

Separate costs related to achieving compliance with AB 1572 are anticipated at properties owned and where water use is managed by the City, however, estimates of these costs are not currently known and

are separate from adoption of the proposed ordinance and additional information and recommendations will be provided at a later date.

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. However, if it is a project the adoption of the Ordinance is categorically exempt from the California Environmental Quality Act pursuant to CEQA Guidelines sections 15307 (Class 7 – Actions by Regulatory Agencies for Protection of Natural Resources) and 15308 (Class 8 – Actions by Regulatory Agencies for Protection of the Environment) because the Ordinance implements and enforces Water Code section 10608.14 to conserve potable water and protect water resources by prohibiting the use of potable water to irrigate nonfunctional turf.

Recommendation (Option 2)
Approve the second reading by title only and adopt Ordinance 1172 N.S., amending Title 14 of the City of El Paso de Robles Municipal Code for California Assembly Bill 1572 compliance.

Attachments

1. Ordinance 1172 N.S. – Ordinance Amending Chapter 14.02 of Municipal Code to Prohibit Potable Water Use for Nonfunctional Turf
a. Exhibit A – Proposed Title 14, Chapter 14.02, Amendments for AB 1572

Attachment 1
ORDINANCE NO. 1172 N.S.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES AMENDING TITLE 14, CHAPTER 14.02, OF THE MUNICIPAL CODE OF THE CITY OF EL PASO DE

ROBLES TO IMPLEMENT STATE REQUIREMENTS PROHIBITING THE USE OF POTABLE WATER TO IRRIGATE NON-FUNCTIONAL TURF; AND FINDING THAT THE ORDINANCE IS NOT

SUBJECT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)

OR IS EXEMPT FROM CEQA REVIEW
WHEREAS, the State of California has recognized the need to reduce inefficient water use and promote long term water sustainability through water conservation measures; and WHEREAS, the City of El Paso de Robles owns and operates a public water system and has adopted Title 14, Chapter 14.02 of the El Paso de Robles Municipal Code to promote water conservation, prevent waste and unreasonable use of water, and protect the reliability of the City’s water supplies; and
WHEREAS, Assembly Bill 1572, as codified in Water Code Section 10608.14, requires the City, no later than January 1, 2027, to revise its Municipal Code to include a prohibition on the use of potable water for the irrigation of nonfunctional turf on specified commercial, industrial, and institutional properties, except cemeteries, and on the properties of homeowners’ associations, common-interestdevelopments, community service organizations and similar entities, to be phased in by the dates prescribed by statute; and
WHEREAS, the proposed amendments to Title 14, Chapter 14.02 add definitions related to functional and nonfunctional turf, establish the applicable compliance dates and exceptions, and require certain property owners to certify compliance with the State Water Resources Control Board; and WHEREAS, the City Council considered the proposed amendments to Chapter 14.02, the staff report, and all written and oral testimony presented regarding the amendments.

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

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

Section 2. Based on the facts and analysis presented to it, including all written and oral testimony, the City Council hereby finds and determines:
a. The proposed amendments to Chapter 14.02 are needed to incorporate Water Code section 10608.14’s requirements regarding the phased prohibition on the use of potable water to irrigate nonfunctional turf into the City’s water use regulations. b. Prohibiting the use of potable water for irrigation of non-functional turf will reduce water use and promote more efficient water use for landscape irrigation.

Attachment 1
Section 3. The City Council finds that the adoption of this Ordinance, including the amendments to Chapter 14.02 is not a “project” and, alternatively, is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15307 (Class 7 – Actions by Regulatory Agencies for Protection of Natural Resources) and 15308 (Class 8 – Actions by Regulatory Agencies for Protection of the Environment).

First, the Ordinance is a text amendment implementing regulations and restrictions on certain irrigation-related activities. The Ordinance does not authorize any specific construction or development, approve any particular site, or directly cause any physical change to the environment.

Accordingly, the City Council finds that, under State CEQA Guidelines Section 15378, subdivision (a), adoption of this Ordinance is not a “project” subject to CEQA because it has no potential for resulting in a direct physical change in the environment, or a reasonably foreseeable physical change in the environment.

Second, CEQA expressly excludes from the definition of “project” the “[o]rganizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.” (State CEQA Guidelines, § 15378(b)(5).) This Ordinance consists of regulatory amendments to the Municipal Code that implement a phased prohibition on the irrigation of nonfunctional turf as required by State law, and will not result in direct or indirect physical changes in the environment. Accordingly, the City Council finds that the Ordinance is also excluded from the definition of a “project” under State CEQA Guidelines Section 15378, subdivision (b)(5).

Third, adoption of the Ordinance is categorically exempt from the California Environmental Quality Act pursuant to CEQA Guidelines sections 15307 (Class 7 – Actions by Regulatory Agencies for Protection of Natural Resources) and 15308 (Class 8 – Actions by Regulatory Agencies for Protection of the Environment) because the Ordinance implements and enforces Water Code section 10608.14 to conserve potable water and protect water resources by prohibiting the use of potable water to irrigate nonfunctional turf.

The City Council directs staff to file a Notice of Exemption for this Ordinance with the San Luis Obispo County Clerk and the State Clearinghouse in accordance with State CEQA Guidelines.

Section 4. Chapter 14.02 of the El Paso de Robles Municipal Code is hereby amended to read as set forth in Exhibit A, attached hereto and incorporated herein by reference.

Section 5. Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.

The City Council hereby declares that it would have passed this Ordinance and each section, subsection, sentence, clause, and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases may be declared invalid or unconstitutional.

Section 6. 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 7. Publication. The City Clerk shall certify as to the adoption of this Ordinance and shall cause a summary thereof to be published at least five (5) days prior to the meeting at which the proposed Ordinance is to be adopted and shall post a certified copy of the proposed Ordinance in the

Attachment 1
Office of the City Clerk. Within fifteen (15) days of the adoption of the Ordinance, the City Clerk shall cause a summary of the Ordinance to be published, including the vote for and against the same, in accordance with Government Code Section 36933.

INTRODUCED at a regular meeting of the City Council held on August 18, 2026, for first reading by the City Council of the City of El Paso de Robles, and adopted on the 1 st day of September, 2026, by the
following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

John R. Hamon, Jr., Mayor
ATTEST:

Melissa Martin, City Clerk
Exhibit A – Proposed Title 14 Amendments for AB 1572

Exhibit A

82471.02003\45267741.1
Title 14 - WATER AND SEWERS1
Chapter 14.02 WATER CONSERVATION AND WATER SHORTAGE CONTINGENCY PLAN

14.02.010 Declaration of necessity and intent.

A. This chapter establishes certain mandatory and permanent water management requirements necessary to conserve water, enable effective water supply planning, assure reasonable and beneficial use of water, prevent waste of water, prevent unreasonable use of water, prevent unreasonable methods of use of water within the City of El Paso de Robles service area in order to assure adequate supplies of water to meet the needs of the public, and further the public health, safety, and welfare, recognizing that water is a scarce natural resource that requires careful management not only in times of drought, but at all times.

B. This chapter also establishes regulations to be implemented during times of declared water shortages, or declared water shortage emergencies. It establishes four levels of actions to be implemented in times of shortage, with increasing restrictions on water use in response to decreasing water supply or production capabilities.

C. Under Assembly Bill 1572 (AB 1572), starting January 1, 2027, the use of potable water for the irrigation of non-functional turf located on commercial, industrial, and institutional properties, other than a cemetery, and on properties of homeowners’ associations, common interest developments, and community service organizations or similar entities is prohibited as of the dates provided in this Chapter. The City shall develop, implement, and encourage the conversion of non-functional turf into waterwise landscaping which are climate-appropriate plants, and to promote the use of non-potable water supplies, including recycled water, where available and feasible.

D. Level 1 water supply shortage measures are voluntary and will be reinforced through local and regional public education and awareness measures. Levels 2 through 4 water supply shortage conditions mandate increasingly restrictive measures in order to attain escalating conservation goals. Those city water customers who violate the measures imposed under a condition of Level 2 through Level 4 are subject to criminal, civil, and administrative penalties and remedies as provided in Chapter 1 of this Code. (Ord. No. 956 N.S., § 2, 6-2-2009; Ord. No. 957 N.S., § 2, 6-16-2009, Ord. No. xxxx N.S., § X, [x-xx-xxx])

14.02.020 Application.

A. This chapter applies to all customers in the use of any water provided by the city, including customers located within or outside the city, and to all private well owners and operators within the city limits.

B. This chapter is intended solely to further the conservation of water. It is not intended to implement or replace any provision of federal, state, or local statutes, ordinances, or regulations relating to protection of water quality or control of drainage or runoff.

1Note(s)—Authority of director of public works—See § 2.36.010 of this code. Department salary scales—See §2.44.090 of this code. Discharge of waste water into streets—See Chapter 1.24 of this code.

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C. The provisions of this chapter do not apply to uses of water necessary to protect public health and safety or for essential government services, such as police, fire and other similar emergency services.

D. Nothing in this Chapter 14.02 is intended to affect or limit the ability of the city manager or his designee to declare and respond to an unforeseeable disaster or water emergency such as an earthquake, or other major disruption in the water supply, pursuant to the general laws of the city or other provisions of this Code. (Ord. No. 956 N.S., § 2, 6-2-2009; Ord. No. 957 N.S., § 2, 6-16-2009; Ord. No. 1021 N.S. § 1, 1-5-2016)

14.02.030 Definitions.

The following words and phrases whenever used in this Chapter 14.02 will have the meaning defined in this section:

A. “CII water use” means water used by commercial water users, industrial water users, institutional water users, and large landscape water users.

B. “Commercial water user” means a water user that provides or distributes a product or service.

C. “Common area” means that portion of a common interest development or of a property owned or managed by a homeowners’ association (HOA) or a community service organization or similar entity that is not assigned or allocated to the exclusive use of the occupants of an individual dwelling unit within the property.

D. “Common interest development” means any of the following:

1. A community apartment project.

2. A condominium project.

3. A planned development.

4. A stock cooperative.

E. “Community service organization or similar entity” means a nonprofit entity, other than an association, that is organized to provide services to residents of the common interest development or to the public in addition to the residents, to the extent community common area or facilities are available to the public. “Community service organization or similar entity” does not include an entity that has been organized solely to raise moneys and contribute to other nonprofit organizations that are qualified as tax exempt under Section 501(c)(3) of the Internal Revenue Code and that provide housing or housing assistance.

F. “Community space” means an area designated by a property owner or a government agency to accommodate human foot traffic for civic, ceremonial, or other community events or social gatherings.

G. “Condition” means a declared water supply shortage condition, which may be at Level 1, Level 2, Level 3 or Level 4, as described in this Chapter 14.02.

H. “Customer” means any person, corporation, public or private entity, public or private association, public or private agency, government agency or institution, school district, college, university, or any other user of water provided by the City of El Paso de Robles.

I. “Days” are defined as calendar days, unless otherwise indicated.

J. “Disadvantaged community” means a community with an annual median household income that is less than 80 percent of the statewide annual median household income.

K. “Functional turf” means a ground cover surface of turf located in a recreational use area or community space.

L. “Homeowners’ association“ or “HOA” means an “association” as defined in Section 4080 of the Civil Code.

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M. “Industrial water user” means a water user that is primarily a manufacturer or processor of materials as defined by the North American Industry Classification System code sectors 31 to 33, inclusive, or an entity that is a water user primarily engaged in research and development.

N. “Institutional water user” means a water user dedicated to public service. This type of user includes, among other users, higher education institutions, schools, courts, churches, hospitals, government facilities, and nonprofit research institutions.

O. “Large landscape” means a nonresidential landscape as described in the performance measures for CII water use adopted pursuant to Water Code section 10609.10.

P. “Non-functional turf” means any turf that is not functional turf, and includes turf located within street rights-of-way and parking lots.

Q. “Potable water” means water that is suitable for human consumption.

R. “Recreational use area” means an area designated by a property owner or a governmental agency to accommodate human foot traffic for recreation, including, but not limited to, sports fields, golf courses, playgrounds, picnic grounds, or pet exercise areas. This recreation may be either formal or informal.

S. “Turf” means a living ground cover surface of mowed grass.

T. “Water Conservation” means the efficient management of water resources for beneficial uses, preventing waste, or accomplishing additional benefits with the same amount of water. (Ord. No. 956 N.S., § 2, 6-2-2009; Ord. No. 957 N.S., § 2, 6-16-2009, Ord. No. xxxx N.S., § X, [x-xx-xxx])

14.02.040 Mandatory minimum water conservation requirements—Prohibition against waste.

The following water conservation requirements shall be in effect at all times and are permanent. Violations will be considered waste and an unreasonable use of water and are subject to penalties.

A. No Excessive Water Flow or Runoff: Watering or irrigating of any lawn, landscape or other vegetated area in a manner that causes or allows excessive water flow or runoff onto an adjoining sidewalk, driveway, street, alley, gutter or ditch is prohibited.

B. No Overfilling of Swimming Pools and Spas: Overfilling of a swimming pools and spas such that overflow water is discharged onto an adjoining sidewalk, driveway, street, alley, gutter or ditch is prohibited.

C. No Washing Down Hard or Paved Surfaces: Washing down hard or paved surfaces, including but not limited to sidewalks, walkways, driveways, parking areas, tennis courts, patios or alleys, is prohibited except under the following conditions:

1. To alleviate safety or sanitary hazards, and then only by use of a hand-held bucket or similar container, a hand-held hose equipped with a positive self-closing water shut-off device.

2. When a low-volume, high-pressure cleaning machine or a low-volume high-pressure water broom is used.

3. All wash-down activities must comply with all state or local regulations pertaining to discharges to the city's storm drain system.

D. Obligation to Fix Leaks, Breaks or Malfunctions: Excessive use, loss or escape of water through breaks, leaks or other malfunctions in the customers' plumbing or distribution system for any period of time after such escape of water should have reasonably been discovered and corrected and in no event more than seven days after written notification by the City of El Paso de Robles, is prohibited.

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E. Re-Circulating Water Required for Water Fountains and Decorative Water Features: Operating a water fountain or other decorative water feature that does not use re-circulated water is prohibited.

F. Limits on Washing Vehicles: Using water to wash or clean a vehicle, including but not limited to any automobile, truck, van, bus, motorcycle, boat or trailer, whether motorized or not is prohibited, except by use of a hand-held bucket or similar container or a hand-held hose equipped with a positive selfclosing water shut-off nozzle or device. This subsection does not apply to any commercial car washing facility.

G. Commercial Lodging Establishments Must Provide Guests Option to Decline Daily Linen Services:

Hotels, motels and other commercial lodging establishments must provide customers the option of not having towels and linen laundered daily. Commercial lodging establishments must prominently display notice of this option in each bathroom using clear and easily understood language.

H. No Installation of Single Pass Cooling Systems: Installation of single pass cooling systems is prohibited in buildings requesting new water service.

I. No Installation of Non-Recirculating Systems in Commercial Car Wash and Laundry Systems: Installation of non-recirculating water systems is prohibited in new commercial conveyor car wash and new commercial laundry systems.

J. New or Remodeled Restaurants Required to Use Water Conserving Dish Wash Spray Valves: All new or remodeled food preparation establishments, such as restaurants or cafes, are prohibited from using non-water conserving dish wash spray valves.

K. Water Served Only Upon Request: Restaurants and other food establishments will only serve water upon request.

L. Prohibition on Irrigation of Non-Functional Turf using Potable Water.

1. The use of potable water to irrigate non-functional turf located on commercial, industrial, or institutional properties other than a cemetery, and on properties of homeowners’ associations, common interest developments, and community service organizations or similar entities, is prohibited as of the following dates:
a. All properties owned by the Department of General Services, beginning January 1, 2027. b. All properties owned local governments, local or regional public agencies, and public water systems, except those specified in paragraph (e), beginning January 1, 2027. c. All other institutional properties and all commercial and industrial properties, beginning January 1, 2028.
d. All common areas of properties of homeowners’ associations, common interest developments, and community service organizations or similar entities, beginning January 1, 2029.
e. All properties owned by local governments, local or regional public agencies, and public water systems in a disadvantaged community, beginning January 1, 2031, or the date upon which a state funding source is made available to fund conversion of non-functional turf on those properties to climate-appropriate landscapes, whichever is later.

2. Non-functional turf includes, but is not limited to, the following:
a. Turf enclosed by fencing or other barriers to permanently preclude human access for recreation or assembly;
b. Common areas of homeowners' associations, common interest developments, and community service organizations or similar entities that are not otherwise designated as a recreational use area or community space;

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3. The prohibition does not apply to:
a. Turf irrigated exclusively with recycled water;
b. Functional turf actively used for recreation or community purposes; c. Use of potable water necessary to ensure the health of trees and other perennial non-turf plantings, or to the extent necessary to address an immediate health and safety need; d. Cemeteries;
e. Community spaces;
f. Recreational use areas;
g. Residential properties; residential customers may continue to irrigate turf subject to the City’s water conservation and related requirements.
h. The Water Board may, upon a showing of good cause for reasons including economic hardship, critical business need, and potential impacts to human health or safety, postpone a compliance deadline in Subsections 1a. through 1e. by up to three years from certain persons, institutions, and businesses, and may create a form to be used for compliance certification to the Water Board by property owners.

M. Certification for Large Commercial, Industrial, and Institutional Properties

1. Pursuant to Water Code section 10608.14(e)(1), an owner of commercial, industrial, or institutional property with more than 5,000 square feet of irrigated area other than a cemetery, shall certify to the State Water Resources Control Board, commencing June 30, 2030, and every three years thereafter through 2039, that their property is in compliance with the requirements of AB 1572.

2. Pursuant to Water Code section 10608.14(e)(2), an owner of a property with more than 5,000 square feet of irrigated common area that is a homeowners’ association, common interest development, or community service organization or similar entity shall certify to the State Water Resources Control Board, commencing June 30, 2031, and every three years thereafter through 2040, that their property is in compliance with the requirements of AB 1572.

3. Proof of certification shall be provided to the City, if requested by the City, in a manner prescribed by the City Manager, or designee.
(Ord. No. 956 N.S., § 2, 6-2-2009; Ord. No. 957 N.S., § 2, 6-16-2009, Ord. No. xxxx N.S., § X, [x-xx-xxx]) [END OF PROPOSED CHANGES TO TITLE 14 Chapter 14.02]

Council Agenda Report
From: Regina Wheeler, Solid Waste & Recycling Manager
Subject: Approval of a Resolution Authorizing the City Manager to Execute an Award of Design Services Contract for the Landfill Flare Replacement Project CEQA Determination: The City finds that this action is exempt from review under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15301 and 15302.

Date: September 1, 2026
Facts

1. Landfill gas is naturally generated as buried waste decomposes. A landfill flare collects and safely combusts this gas, reducing methane emissions and allowing the landfill to comply with applicable air quality regulations.

2. The Paso Robles Landfill has approximately 45 years of remaining waste capacity; however, the existing flare has reached the end of its service life after 29 years.

3. The City solicited proposals for Professional Engineering Design Services for the Landfill Flare Replacement Project.

4. The City completed a qualification-based selection process that included a selection committee review of proposals, qualifications and references.

5. The City’s selection committee determined that Stantec Consulting Services Inc. was the most qualified and best suited firm to provide the design services for the Landfill Flare Replacement project.

6. Design services for the gas flare replacement includes developing performance criteria to comply with the amended California Air Resources Board Landfill Methane Regulation requirements, preparing site plans, and technical specifications, coordinating permit applications with San Luis Obispo County Air Pollution Control District and PG&E, and providing bid-phase services for construction.

7. The City negotiated a scope of work, fee, and schedule with Stantec Consulting Services Inc. The total cost for design services for the Paso Robles Landfill Flare Replacement Project is $242,506.

Options

1. Take no action;

2. Approve a Resolution awarding Engineering Design Services Contract to Stantec Consulting Services Inc. for the Paso Robles Landfill Flare Replacement Project;

3. Provide alternative direction to staff.

Analysis and Conclusions
The City planned and budgeted to replace the Paso Robles Landfill flare during the current budget cycle to increase the flare’s reliability and efficiency. Landfill flares in California are typically replaced every 20- 30 years. Stantec Consulting Services, Inc., has highly experienced waste engineers, geologists, and regulatory specialists who specialize in waste management facilities. They are experienced with the

regulatory processes for facility permitting and will develop a reliable and sustainable solution to the landfill flare design.

Proposing firms were asked to evaluate siting and equipment alternatives as well as design a replacement flare to meet the City’s landfill requirements. This will require preparation of bidding documents and bidphase services for the construction portion of the flare replacement project. A key factor affecting the project schedule is the electrical service required for the replacement flare. As part of the design, the consultant will evaluate the existing electrical service and determine whether an upgrade from PG&E is required. If an upgrade is necessary, the construction schedule will need to account for PG&E’s potentially significant lead time to establish the required service.

Fiscal Impact
Stantec Consulting Services, Inc.’s proposed fee for professional engineering design services for the Landfill Flare Replacement Project is $242,506. Funding for these services is included in the City’s approved Fiscal Year 2026-27 Solid Waste Capital Projects Budget. Funding for the construction of the improvements will be appropriated once a final design is completed.

CEQA
The City finds that this action is exempt from review under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15301 and 15302 as this is the repair and replacement of the existing flare to ensure compliance with air quality standards.

Recommendation (Option 2)
Approve Resolution 26-XXX awarding a contract for design services for the Landfill Flare Replacement Project in the amount of $242,506 and authorize the City Manager to execute the contract.

Attachments

1. Resolution 26-XXX – Professional Engineering Services for the Landfill Flare Replacement Project a. Stantec Consulting Services Inc. Scope of Services and Cost Proposal-Landfill Flare Replacement Project No. UD 26-02

Attachment 1
RESOLUTION 26-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES AWARDING A PROFESSIONAL SERVICES AGREEMENT TO STANTEC CONSULTING SERVICES INC.

FOR DESIGN SERVICES FOR THE LANDFILL FLARE REPLACEMENT PROJECT AND DECLARING

THIS ACTION EXEMPT FROM CEQA REVIEW PURSUANT TO STATE
GUIDELINES SECTIONS 15301 AND 15302
WHEREAS, landfill gas is naturally generated as buried waste decomposes. A landfill flare collects and safely combusts this gas, reducing methane emissions and allowing the landfill to comply with applicable air quality regulations.

WHERAS, the Paso Robles Landfill has approximately 45 years of remaining waste capacity; however, the existing flare has reached the end of its service life after 29 years.

WHEREAS, the City solicited proposals for Professional Engineering Design Services for the Landfill Flare Replacement Project, and
WHEREAS, the City completed a qualification-based selection process that included a selection committee review of proposals, qualifications and references, and WHEREAS, the selection committee determined that Stantec Consulting Services Inc. was the most qualified and best suited firm to provide the design services for the Landfill Flare Replacement project, and
WHEREAS, Design services for the gas flare replacement includes developing performance criteria to comply with the amended California Air Resources Board Landfill Methane Regulation requirements, preparing site plans, and technical specifications, coordinating permit applications with San Luis Obispo County Air Pollution Control District and PG&E, and providing bid-phase services for construction, and
WHEREAS, The City negotiated a scope of work, fee, and schedule with Stantec Consulting Services Inc. The total cost for design services for the Paso Robles Landfill Flare Replacement Project is $242,506, 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 City Council finds that this action is exempt from review under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15301 and 15302 as this is the repair and replacement of the existing flare to ensure compliance with air quality standards. The project will result in the replacement of the facility with negligible expansion of capacity.

Attachment 1
Section 3. The City Council authorizes the City Manager to enter into a Professional Services Agreement with Stantec Consulting Services Inc for design services for the landfill flare replacement project for an amount not to exceed $242,506.

Section 4. This Resolution shall take effect on the date it is approved by the City Council.

APPROVED this 1st day of September 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

John R. Hamon, Jr., Mayor
ATTEST:

Melissa Martin, City Clerk
Exhibit A - Stantec Consulting Services Inc. Scope of Services and Cost Proposal-Landfill Flare Replacement Project No. UD 26-02

Proposal for
City of El Paso De Robles –
Landfill Flare Replacement
Project
RFP for Professional Engineering Design Services
for the “Landfill Flare Replacement Project” Utilities
Dept. Project No. UD 26-02
July 24, 2026
Stantec Consulting Services July 24, 2026 Utilities Dept Project #26-02

Exhibit A

Proposals for Professional Engineering Design Services for the “Landfill Flare Replacement Project” | Utilities Dept. Project No. UD 26-02 Stantec 11 5 Scope of Services & Schedule
Stantec understands the City's objective is to evaluate, design, permit, and prepare bid-ready documents for a replacement landfill flare system that will maintain regulatory compliance, accommodate anticipated California Landfill Methane Regulation requirements, and provide reliable long-term operation for the Paso Robles Landfill. Our proposed scope is organized to align directly with the seven phases identified in the RFP. The City’s RFP outlines seven phases to complete design, permitting and construction of the new flare.

5.1 Phase 1 – Conceptual Design Package (10% Design)
Stantec will develop a conceptual (10%) design package that establishes the design basis, evaluates alternatives, and identifies a preferred approach for the replacement landfill flare system.

Key Activities
• Review available City documents, permits, landfill gas system information, operational data, topographic information, and regulatory requirements.
• Hold a hybrid project kick-off meeting with the City. Two Stantec personnel will attend in person, and other key Stantec team members will join virtually.
• Conduct a site visit and field verification of existing conditions. This will be completed during the same site visit as the project kick-off meeting.
• Locate and verify critical utilities, piping, access routes, and site constraints by field observation. o We have assumed that no topographic survey is needed and our design work can be performed using existing information and data. If additional survey is required, Stantec will notify the City. • Evaluate existing landfill gas collection infrastructure, gas generation data, condensate management systems, and future capacity requirements.
• Assess potential flare siting alternatives while maintaining landfill operations and public access. • Evaluate electrical service alternatives, including use of the existing PG&E service and potential service upgrades. • Develop preliminary flare sizing criteria and performance requirements. • Prepare preliminary emissions calculations and evaluate anticipated regulatory compliance requirements. • Coordinate with City staff and its instrumentation and controls integrator (I&C) regarding operational and SCADA requirements.
• Develop conceptual layouts and equipment configurations, including flare, blower skid, control systems, electrical facilities, and piping.
• Prepare a Draft Preliminary Design Memorandum (PDM) documenting alternatives analysis, design basis, recommended alternative, and project assumptions.
• Develop a planning-level engineer's opinion of probable construction cost • Hold a virtual design review meeting with the City.

Deliverables
• Draft Preliminary Design Memorandum (10% design)
• Conceptual Site Layouts (10% design)
• Preliminary Equipment Configuration (10% design)
• Conceptual Cost Estimate (Class 4, 1-15% project definition)

5.2 Phase 2 – Preliminary Design (30% Design)
Stantec will advance the preferred alternative into a preliminary (30%) engineering design package that establishes the basis for final design and permitting.

Key Activities
• Incorporate City review comments from Phase 1.
• Prepare the Final Preliminary Design Memorandum.
• Evaluate flare siting requirements and foundation needs. • Develop foundation recommendations based on existing geotechnical information and geotechnical fieldwork.

Exhibit A

Proposals for Professional Engineering Design Services for the “Landfill Flare Replacement Project” | Utilities Dept. Project No. UD 26-02 Stantec 12 o Retain a subcontracted geotechnical driller
o Perform utility locate and obtain Underground Service Alert ticket o Complete a total of two HSA soil borings to a depth of approximately 30 feet bgs, or refusal, whichever occurs first
o Complete a two seismic refraction lines approximately 100 feet long on the ground surface near the proposed landfill flare foundation
o Test soil samples obtained from the field exploration program at a subcontracted soil mechanics laboratory to evaluate the engineering properties of the encountered subsurface soils o Results of the investigation will be summarized in a written report complete with an exploration plan, boring logs, and laboratory test results.
▪ Subsurface conditions beneath the site.
▪ Potential geologic hazards.
▪ Site preparation, over excavation, and grading recommendations in landfill flare pad and driveway areas.
▪ Concrete and asphalt pavement design recommendations. ▪ Utility trenching backfill recommendations.
▪ Corrosivity of the on-site soil with respect to metal and concrete. ▪ Seismic design parameters, as specified by the 2025 California Building Code. ▪ Liquefaction analysis, if necessary, as specified by the 2025 California Building Code. ▪ Recommendations for deep and/or shallow foundations, including parameters for vertical and lateral bearing, minimum foundation depths and dimensions, settlement estimates (seismic and static), expansive soil characteristics, lateral soil pressure and soil resistance. • Preliminary landfill gas generation analyses and flare sizing requirements o Initiating this work within Phase 2 will allow for soonest submittal San Luis Obispo County Air Pollution Control District (APCD) Authority to Construct (ATC), which is the project’s critical path lead time. • Prepare preliminary civil, mechanical, structural, electrical, instrumentation, and controls design. • Prepare preliminary electrical site plans, conduit routing, and single-line diagrams. • Develop preliminary trenching, piping, and utility connection requirements. • Advance I&C design to 30% based on continued coordination with the City’s integrator. • Identify electrical service requirements and implementation steps for PG&E coordination. • Prepare an engineer's opinion of probable construction cost reflective of the design phase. • Conduct a design review workshop with City staff.

Deliverables
• Updated Progressive Design Memorandum (30% design)
• Preliminary Design Drawings (30% design)
• Geotechnical Fieldwork and Report, and Flare Foundation Recommendations • Structural Design Recommendations
• Preliminary Electrical and Controls Plans (30% design) • Preliminary Cost Estimate (Class 3, 10-40% project definition)

5.3 Phase 3 – Preliminary Design (60% Design)
Stantec will advance the preferred alternative into a preliminary (60%) engineering design package that establishes the basis for final design and permitting.

Key Activities
• Incorporate Phase 2 review comments.
• Refine and finalize landfill gas generation analyses and flare sizing requirements. • Finalize foundation and structural design criteria.
• Complete detailed civil, mechanical, structural, process, instrumentation, controls, and electrical design. • Develop yard piping layouts, trench details, condensate management improvements, and utility connections. • Prepare equipment layouts, process flow diagrams, P&IDs, and equipment control descriptions. • Develop startup, testing, and commissioning protocols. • Prepare monitoring and compliance protocols supporting existing permit requirements and anticipated Landfill Methane Regulation requirements.
• Prepare San Luis Obispo County APCD ATC, incorporate City review comments, and submit final permit application. o Carbon copy of ATC application, including the full application, to be sent to Regional Water Quality Control Board and the City.

Exhibit A

Proposals for Professional Engineering Design Services for the “Landfill Flare Replacement Project” | Utilities Dept. Project No. UD 26-02 Stantec 13 o Based on past experience, we anticipate receiving a Notice of Completeness within 30 days of application submittal and the final permit within 3 to 6 months after the Letter of Completeness. • Complete and submit electrical permitting and request for service upgrades to PG&E • Submit technical information and building and fire safety permit application materials on behalf of the City. • Prepare draft construction drawings and specifications for City review. • Prepare an engineer's opinion of probable construction cost reflective of the design phase.

Deliverables
• Updated Progressive Design Memorandum (60% design)
o Draft Design Drawings and Specifications
• SLO APCD Permit Application Package
o Emissions Calculations and Compliance Documentation
• Construction Cost Estimate (Class 2, 30-70% project definition) We have assumed all permit fees will be paid directly by the City and not by Stantec.

Stantec recommends that the City considers procuring the flare equipment package directly from the flare vendor following receipt of the ATC and ahead of final (90%) design and outside of the flare project’s construction contract. This will ensure that the City’s desired specifications are provided, including specific design and operating features, along with procuring equipment from the City’s preferred vendor. Stantec can support flare procurement by preparing and supporting a flare package request for quotes and evaluating equipment vendor proposals. By procuring the flare ahead of final design, the foundation can be sized for the actual flare skid equipment that will be installed. This will also reduce overall schedule for the new flare’s startup by ordering the flare equipment and starting the flare equipment’s lead time as soon as possible and before the construction contract is awarded.

5.4 Phase 4 – Final Design & Bid Package (90% Design)
Stantec will finalize all construction and bidding documents (90%) based on City and agency comments.

Key Activities
• Address all review comments from the City and permitting agencies. • Finalize design calculations and construction documents. • Prepare final technical specifications in CSI format. • Update construction cost estimates and anticipated construction schedule. • Deliver final design files in AutoCAD, PDF, and editable formats. • Prepare a conformed bid document package.
• Support preparation of bid advertisement materials.

Deliverables
• Issued for Construction Drawings & Specifications
• Complete Bid Package including City Construction Contract Agreement & Conditions • Final Opinion of Probable Construction Cost (Class 1, 70-100% project definition) • Anticipated Construction Schedule

5.5 Phase 5 – City Building Department Permitting Services Stantec will support the City through the building permit review process and secure final City building permitting approvals.

Key Activities
• Submit Issued for Construction Drawings & Specifications for City building permit review. • Coordinate with City review staff.
• Respond to plan review comments.
• Revise design documents as required.
• Obtain final building permit approval.

Exhibit A

Proposals for Professional Engineering Design Services for the “Landfill Flare Replacement Project” | Utilities Dept. Project No. UD 26-02 Stantec 14 Deliverables
• City Building Permit Submittal Package submitted through the Paso Permits portal • Formal Response to Permit Review Comments
• Updated Issued for Construction Drawings & Specifications including City review comments

5.6 Phase 6 – Construction Bidding Phase Services
Stantec will provide technical support throughout the public bidding process.

Key Activities
• Participate in and lead the pre-bid meeting.
• Respond to bidder requests for information.
• Review substitution requests and requests for clarification. • Prepare technical portions of addenda.
• Assist the City in evaluating contractor bids.
• Provide technical recommendations regarding bidder responsiveness and qualifications. • Support contract award activities.

Deliverables
• Pre-Bid Meeting Support, including preparation of meeting agenda and attendance. • Technical Addenda.
• Bid Review Memoranda.
• Technical Recommendation Documentation.

5.7 Phase 7 – Construction Support Services
Stantec will provide engineering support throughout the construction phase of the new flare system.

Key Activities
• Review contractor submittals and shop drawings.
• Respond to Contractor Requests for Information (RFIs). • Review proposed equipment and materials conformance to Contract Documents. • Review factory acceptance testing and performance testing. • Coordinate with City staff, contractor, landfill operator, and equipment suppliers. • Prepare Record Drawings based on City and Contractor redline drawings. • Coordinate with City’s I&C integrator.

Deliverables
• Submittal Reviews.
• Contractor RFI Review and Responses.
• Construction Documentation Report includi.ng a narrative of construction activities. • Prepare Record Drawings based on Contractor redline drawings and Contractor-performed as-built survey. • Project Closeout Support.

We have assumed that on-site construction observation and other CQA services, including participation in construction meetings, are excluded from the base scope and have included these services within optional additional services below.

5.8 Optional Additional Services
At the City’s request, Stantec can provide additional optional services presented below in support of the project and scope of work presented above. This scope is not included in our cost proposal at this time. • Topographic Survey and Construction Staking: Stantec has a local team of licensed land surveyors and survey technicians that can complete existing conditions surveys and support layout and grade control for construction phase work. We have assumed that the City’s existing
Exhibit A

Proposals for Professional Engineering Design Services for the “Landfill Flare Replacement Project” | Utilities Dept. Project No. UD 26-02 Stantec 15 site information for the existing LFG flare and infrastructure and the proposed new flare locations is sufficient to complete all design work. If it is determined that there are data gaps upon our review of the available information, Stantec will notify the City and provide a scope and budget to complete any survey work required to develop a complete existing conditions base plan.
• Construction Quality Assurance & Construction Observation Services:

Stantec recommends that all underground construction work be completed and observed by the City or its representatives. Stantec routinely provides on-site CQA and construction observation services to help the Construction Contractor interpret Construction Drawings and Technical Specifications, observe and document all completed underground utility work before it is covered, observe and document conformance testing such as pipe pressure testing, in-place moisture-density testing, and cast-in-place concrete testing, cylinder preparation, and rebar and formwork inspection. Stantec’s typical protocol for construction observation includes preparing daily construction logs, which documents weather conditions, Contractor personnel and equipment on-site, work completed, construction issues encountered and resolutions, testing completed, and photographs of existing conditions, in-progress, and completed work.

In addition, Stantec recommends that the Engineer participate in regular construction meetings, including the pre-construction meeting. Based on our past experience with landfill gas utility and flare construction, we recommend construction meetings occur every two weeks, with an increase to weekly during critical elements such as concrete pours and flare erection.

Stantec can provide the City with a proposal with our recommended CQA and construction observation services support upon receiving the Contractor’s proposed construction schedule.

5.9 Assumptions & Exclusions
Stantec has prepared this proposal with the following assumptions and exclusions:
• Site access will be granted without delay during field work, and truck-mounted drilling equipment will be able to mobilize to the proposed drilling locations.
• Traffic control, including delineators and snow fencing, will not be required. • Concrete coring is not included, and additional costs will be incurred if it is required. • The project is not subject to prevailing wage rates for field subcontractor services. • HSA and geophysics field work will be completed concurrently. • Sites will be accessible with a truck mounted drill rig. • A drilling permit through San Luis Obispo County Environmental Health will be required. • Seismic refraction lines will be conducted in the soil near the proposed flare foundation, and no obstructions will be encountered.
• Soil borings will be backfilled with cuttings and excess soil will be spread on the ground surface near each boring location. If soil cuttings will need to be stored in 55-gallon drums and transported offsite for disposal, additional costs will be incurred.
• We have assumed that the soils to be drilled from the site will not be impacted with petroleum hydrocarbons. • If hollow stem auger encounters refusal due to large rock, the boring data obtained will be evaluated. If the data obtained is not sufficient to fully characterize the site for the proposed scope, additional drilling utilizing a different drilling method may be required and additional costs will be incurred.
• HSA drilling will be completed in one day. Additional charges will be incurred if additional days are needed to complete the drilling scope.
• Earthquake fault studies (trenching to trace fault lines) are not required. • Site specific ground motion hazard analysis (GMHA) is not included in this scope of work but can be completed at an additional cost if determined to be necessary by the project SE. • Post-investigation services including review of plans, specifications, additional services or responses requested by MST or governmental agencies, or observation and testing during construction are not included in this scope. • This cost estimate assumes that all additional services described above or not specifically mentioned in the scope of work described herein will be performed upon receipt of your specific authorization. • Personal protection greater than Level D is not included. • No project delays will occur due to site access limitations, regulatory agencies, inclement weather, or other unforeseen circumstances. This includes owner requests for insurance certificates, for which Client will supply their own documentation (supplying insurance documentation to entities other than Client is not part of Stantec’s scope of work or responsibility).

Exhibit A

Proposals for Professional Engineering Design Services for the “Landfill Flare Replacement Project” | Utilities Dept. Project No. UD 26-02 Stantec 16 • Topographic survey and exiting utility mapping are not required, other than as required for the USA ticket for the geotechnical drilling, and existing site information is sufficient to complete the LFG flare and infrastructure design. • All deliverables will be in digital format. No hardcopies are required. • The City will pay for all permit application fees.
• Anything not specifically included in Stantec’s proposed scope of work is excluded.

5.10 Project Schedule
Included within Appendix B is a Gannt chart of our anticipated project schedule. The project schedule was developed based on the City’s required scope and estimated phase duration included within the RFP. As demonstrated, our team has the expertise and experience to carry out the work required and continues to expand on this knowledge base through training, conferences, and research opportunities. Additionally, we have resources available to start work immediately. The team will regularly review and refine the schedule and provide updates through Progress Reports, including performance, milestone status, schedule variances, critical path, and available float.

We see the SLO APCD ATC permit being the critical path to procuring the new flare equipment and starting construction. We plan to submit this permit application as soon as possible, and tentatively at the onset of Phase 3 – 60% design. We recommend no starting Phase 4 – 90% design until SLO APCD technical review comments have been fully addressed. Stantec will coordinate closely with SLO APCD once the ATC permit has been submitted to ensure a timely review and respond to technical questions as quick as possible.

Additionally, as noted within Section 5.3, we recommend that the City considers procuring the new flare directly from the vendor upon receipt of the ATC to minimize equipment installation lead time.

Exhibit A

Proposals for Professional Engineering Design Services for the “Landfill Flare Replacement Project” | Utilities Dept. Project No. UD 26-02 Stantec 17 6 Cost Estimate
We have prepared a work breakdown structure that presents our proposed budgeted hours by our technical team by task along with budgeted expenses. The work breakdown structure includes our proposed budget to complete the work, which is provided in a separate, sealed envelope that accompanies this proposal. The proposed budget will remain valid to the City for at least 60 days. Stantec anticipates completing all technical and professional work in-house and using subcontractors for utility location services, geotechnical drilling services, geophysics analysis, and soils laboratory services. Stantec will provide the names of our proposed subcontractors for these services to the City prior to initiating their scope of work.

The Stantec 2026 Fee schedule to be used for this project is attached. Our proposed budget assumes 5% annual increase to our standard rates effective on January 1, annually. Actual future rate tables will be provided to the City once they are published.

Stantec will carefully monitor costs and inform you of Stantec’s budget status during invoicing (to occur monthly). The billing is based on an hourly basis for only hours worked and expenses incurred according to the attached rate table. The total proposed cost is an estimate only, not a limit, and invoices will reflect the actual effort it takes to complete the scope of work proposed.

We will maintain an open line of communication regarding project cost to avoid surprises.

6.1 Budget Control
We recognize that cost control is one of the principal ways to reduce project risk. Our primary approach to managing cost is to establish a traceable budget, which is developed from a detailed estimate and work breakdown structure (WBS) that integrates the scope and cost information for the project.

We have developed a proprietary project controls system called Integrated Project Solutions (IPS). IPS is an integrated software that combines all aspects of a project including estimating, budgeting, forecast, cash flow, earned value, scheduling, procurement, document management, resource management, RFI management, and change management.

Todd Porter will make sure each team member has a clearly defined scope or task and is aware of their assigned budget. At the beginning of the project, a WBS will be developed that identifies major tasks and subtasks. Each subtask represents a defined work item assigned to an individual or group, as appropriate, and is assigned a labor budget. Over the duration of the project, Todd will monitor the execution of the work on a weekly basis by tracking expended labor hours by employee through Stantec’s Oracle accounting database. The results are reported to the team on a weekly basis for Todd to review task and subtask progress and allocate resources according to the agreed upon schedule.

Exhibit A

STANTEC CONSULTING SERVICES, INC. COST SUMMARY
Engineering Services Fee Summary
Phase 1 - Conceptual Design Package (10% Design) $23,706.60 Phase 2 - Preliminary Design (30% Design) $21,747.98
Phase 3 - Preliminary Design (60% Design) $160,058.15
Phase 4 - Final Design & Bid Package (90% Design) $15,105.30 Phase 5 - City Building Permitting Services $7,258.65
Phase 6 - Construction Bidding Phase Services $14,629.45 Total Fee (Tasks 1-6) $242,506.13
Optional Phase 7 - Construction Support Services $45,351.85 City of El Paso De Robles Landfill Flare Replacement Project Project No. UD26-02
Note: Construction Support Services are not included in the Total Fee (Phases 1-6) and may be authorized separately.

Exhibit A

Council Agenda Report
From: Ryan Cornell, Administrative Services Director
Subject: Public Hearing and Consideration of Adoption of Resolutions Form Community Facilities District No. 2026-1 (Beechwood-Facilities) to Provide Transportation Facilities, Park and Recreation Improvements and Facilities, Parkway and Landscaping Improvements, Landscaping Improvements, Public Safety Improvements Including Police and Fire Building and Equipment, Public Library and Community Center Facilities, Water, Wastewater and Storm Drain Improvements, Street Improvements, General Government Facilities, and Dry Utilities
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: September 1, 2026
Facts

1. The Beechwood Specific Plan Project (the “Project”) proposes the development of 911 residential units, including at least 150 multi-family residential units; 40,000 square feet of neighborhood commercial/mixed-use development; 20+ acres of open space that includes an 8-acre public park, smaller public green spaces, and conserved open space; and a 2.9-mile multi-use pathway network.

2. The City and the Beechwood Owners Group are parties to a certain Development Agreement (“DA”) dated April 14, 2021, in which the City granted Beechwood Owners Group the exclusive right to develop the Project. DAs are a commonly used tool executed for large or complex developments and are legally binding contracts negotiated between the City and the developer to delineate the terms and conditions of a proposed development project.

3. City Council Resolution No. 03-232, and General Plan policy LU-4A, Action Item 3, requires a fiscal impact analysis for new development in specific plan areas and conditions projects accordingly to ensure that they will be fiscally neutral and not result in a net fiscal loss for the City.

4. 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.

5. 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.

6. On July 21, 2026, City Council approved Resolutions No. 26-077 and 26-078, which initiated the formation of Community Facilities District No. 2026-1 (Beechwood Facilities) (the “District” or “CFD No. 2026-1”), approved the boundaries of the proposed District, described the facilities proposed to be financed, proposed a rate and method of apportionment of special taxes, and declared the

necessity to issue bonds secured by such special tax levy to finance the facilities. Additionally, the resolutions set a public hearing to be held on September 1, 2026.

Options

1. Take no action;

2. Conduct a public hearing and approve resolutions establishing the proposed Community Facilities District No. 2026-1 (Beechwood-Facilities); determining the necessity to incur a bonded indebtedness; calling for a special election for qualified voters; determining the election results of the special election; and authorizing the first reading of the Ordinance authorizing the levy of special taxes;

3. Provide alternative direction to staff.

Analysis and Conclusions
Pursuant to the provisions of the DA there are many public facilities which are required to be constructed by the Developer. Consistent with the DA, the Developer has requested the formation of CFD No. 2026-1 under the provisions of the Act. A CFD can finance, through the issuance of bonds, public facilities which are needed for development within communities, such as streets, water and sewer improvements, parks, schools and flood control. The bonds are repaid from special taxes levied on the taxable real property within the CFD and remain a liability of the Developer and ultimately the homeowners. The funds of the City are not responsible for the payment of debt service and administration of the CFD. The sole source of repayment of the bonds is the special tax to be levied on property within the CFD.

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.

Procedure for Formation of the Community Facilities District At the City Council meeting on July 21, 2026, the City Council initiated proceedings to form CFD No. 2026-

1. The purpose of the items presented at this meeting is to (1) hold a public hearing regarding the formation of CFD No. 2026-1 and the incurring of bonded indebtedness; (2) adopt resolutions establishing the District; (3) conduct an election regarding the levy of a special tax, the issuance of bonded indebtedness, and the establishment of an appropriations limits therein; and (4) declare the election results, all as required by the Act. If a majority of interested persons within the boundaries of the proposed CFD No. 2026-1 do not register written or oral protest at the public hearing, then the City Council may consider approving the following actions in the following order:

1. Approve Resolution Establishing CFD No. 2026-1 (“Resolution of Formation”)

2. Approve Resolution Determining the Necessity to Incur Bonded Indebtedness

3. Approve Resolution Calling Special Election

4. Conduct Election

5. Approve Resolution Declaring Election Results

6. First Reading of an Ordinance Authorizing the Levy of Special Taxes with CFD No. 2026-1 The Resolution of Formation (Attachment No. 1) establishes the District and designates two improvement areas therein and specifies that, upon approval of the voters, special taxes will be levied on all parcels of

taxable property in the proposed District to pay for the public facilities and other costs of the District, including principal of and interest on the bonds of the District which will be issued to finance the public facilities. The rate and method of apportionment of the proposed special taxes that may be levied for these purposes are set forth in Exhibit B to the Resolution of Formation. The Resolution of Formation also approves the form of a Funding and Acquisition Agreement for each Improvement Area which sets forth the terms and conditions under which the City will acquire improvements constructed by the Developer.

The Resolution Determining Necessity (Attachment No. 2) authorizes the District, upon approval of the voters, to incur a bonded indebtedness in an aggregate principal amount not to exceed $15 million for Improvement Area No. 1 and $15 million for Improvement Area No. 2 and calls an election on such matter.

The Resolution Calling the Special Election (Attachment No. 3) calls elections for the District with respect to the annual levy of special taxes and with respect to establishing an annual appropriations limit of $30,000,000, and further consolidates such elections with the election regarding the incurring of bonded indebtedness called in the Resolution Determining Necessity.

The Clerk and the Owners have consented to hold the special election on September 1, 2026. The San Luis Obispo County Registrar of Voters has certified that there are no registered voters within the boundaries of the District. Following the adoption of the Resolution Calling Election, the City Clerk will conduct the election and declare the election results.

If the results of the election are in favor of the levy of special taxes within the District, and the incurrence of bonded indebtedness therein, the City Council may call the first reading of the ordinance (Attachment No. 5) authorizing the levy of special taxes within the District.

Fiscal Impact
Properties within CFD No. 2026-1 will be subject to an annual special tax collected by the County in the same manner as ad valorem property taxes. The special tax rate will depend on several variables including location of property in improvement areas and product.

Formation costs incurred by the City in connection with CFD No. 2026-1 have been and will be reimbursed by Developer for staff and consultant time. The City will receive an administrative fee for its oversight and the formation of CFD No. 2026-1 and shall be reimbursed for actual costs in conjunction with annual administration of CFD No. 2026-1, which shall be included as part of the annual special tax levy. Finally, the bonds are secured by a lien on the individual properties within CFD No. 2026-1 and the special taxes to be levied are the sole source of repayment for the bonds.

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
It is recommended that City Council take the following actions:

1. Hold a public hearing;

2. Approve Resolution 26-XXX(A), establishing CFD No. 2026-1, designating two improvement areas therein and the boundaries thereof, providing for the levy of special herein, and approving the funding and acquisition agreement;

3. Approve Resolution 26-XXX(B), determining the necessity to incur bonded indebtedness for Improvement Area Nos. 1 and 2 of CFD No. 2026-1, and calling special mail ballot elections for the CFD and Improvement Areas on propositions for incurring such bonded indebtedness;

4. Approve Resolution 26-XXX(C), calling a special election and submitting to the voters of CFD No. 2026- 1 and Improvement Areas Nos. 1 and 2, thereof propositions regarding the annual levy of special taxes within the CFD to pay the cost of certain public services and establishing an appropriations limit for the CFD;

5. Conduct elections;

6. Approve Resolution 26-XXX(D), declaring the results of the consolidated special election within Improvement Area No. 1 and Improvement Area No. 2 of CFD No. 2026-1;

7. Introduce for first reading, Ordinance XXXX, authorizing the levy of special taxes within CFD No. 2026- 1 and Improvement Area Nos. 1 and 2 thereof.

Attachments

1. Resolution 26-XXX(A) - Resolution of Formation
a. Exhibit A – Description of Authorized Facilities
b. Exhibit B – Rate and Method of Apportionment
c. Exhibit C – Boundary Map

2. Resolution 26-XXX(B) - Resolution Determining Necessity a. Exhibit A - Description of Authorized Facilities
b. Exhibit B - Form of Official Ballot

3. Resolution 26-XXX(C) - Resolution Calling Election
a. Exhibit A – Form of Official Ballot

4. Resolution 26-XXX(D) - Declaring the Results of Election

5. Ordinance XXXX- Authorizing the Levy of Special Taxes Within CFD No. 2026-1 a. Exhibit A - Rate and Method of Apportionment

6. Community Facilities District Report

7. Funding and Acquisition Agreements

Attachment 1
RESOLUTION 26-XXX(A)

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES ESTABLISHING THE CITY OF PASO ROBLES COMMUNITY FACILITIES DISTRICT NO. 2026-1 (BEECHWOOD– FACILITIES, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA,), DESIGNATING TWO

IMPROVEMENT AREAS THEREIN AND THE BOUNDARIES THEREOF AND PROVIDING FOR THE LEVY OF A

SPECIAL TAX THEREIN, AND APPROVING A FUNDING AND ACQUISITION AGREEMENT WHEREAS, on July 21, 2026, the City Council (the “City Council”) of the City of El Paso de Robles (the “City”) adopted Resolution 26-077 (the “Resolution of Intention”), declaring its intention to establish a community facilities district and designate two improvement areas therein (each an “Improvement Area,” and together, the “Improvement Areas”) pursuant to the provisions of Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, known as the “MelloRoos Community Facilities Act of 1982” (the “Act”) to be known as the “City of Paso Robles Community Facilities District No. 2026-1 (Beechwood – Facilities), County of San Luis Obispo, State of California” (the “Community Facilities District”); and
WHEREAS, the Community Facilities District is proposed to be established for the purpose of financing certain public facilities which are necessary to meet increased demands placed upon the City as a result of the development of the property within Community Facilities District and the financing of, or contributing to the financing of, certain public facilities proposed to be acquired or constructed and financed by Community Facilities District, all as more particularly described in Exhibit A attached hereto and incorporated herein (the “Facilities”), and it is proposed that the Community Facilities District will be authorized to incur bonded indebtedness for the purpose of financing such Facilities in the aggregate principal amount not to exceed $30,000,000; and
WHEREAS, in the Resolution of Intention the City Council approved a boundary map (the “Boundary Map”), as required by California Streets and Highways Code Section 3110, entitled “Proposed Boundaries of City of Paso Robles Community Facilities District No. 2026-1 (Beechwood – Facilities), County of San Luis Obispo, State of California,” which is attached hereto as Exhibit C and incorporated herein; and WHEREAS, the Resolution of Intention fixed a time and place for a public protest hearing (the “Public Hearing”) to be held by the City Council to consider the establishment of the Community Facilities District, the authorization of a special tax to be levied therein, the Facilities proposed to be authorized, the establishment of an appropriations limit for the Community Facilities District, and all other matters set forth in the Resolution of Intention; and
WHEREAS, notice of the Public Hearing was published and mailed to the owners of all of the property in the proposed boundaries of the Community Facilities District; and WHEREAS, prior to the commencement of the Public Hearing there was filed with the City Council a report (the “Report”) containing a description of the public facilities required to adequately meet the needs of the Community Facilities District and an estimate of the fair and reasonable costs of providing such public facilities, as required by Section 53321.5 of the Act, and such Report has been reviewed by the City Council; and
WHEREAS, on September 1, 2026, at the time and place set by the Resolution of Intention, the City Council conducted the Public Hearing and considered the establishment and extent of the Community Facilities

Attachment 1
District, the levy of the special tax and the proposed rate, method, and apportionment and manner of collection of the special tax, the Facilities proposed to be authorized, the establishment of an appropriations limit, and all other matters set forth in the Resolution of Intention; and WHEREAS, at the Public Hearing, all interested persons, including all taxpayers, property owners, and registered voters within the proposed boundaries of the Community Facilities District, were given an opportunity to appear and to be heard, and the testimony and protests of all interested persons and all taxpayers, property owners, and registered voters for or against the formation of the Community Facilities District, the designation of the Improvement Areas, the levy of the special taxes therein, the provision of the facilities to be authorized therein, the incurring of bonded indebtedness, and any other matters set forth in the Resolution of Intention were heard and considered, and a full and fair hearing was held; and WHEREAS, at the Public Hearing evidence was presented to the City Council on the matters before it, and the City Council, at the conclusion of the hearing, was fully advised as to all matters set forth in the Resolution of Intention; and
WHEREAS, the City Clerk has advised the City Council that a statement from the Registrar of Voters of the County of San Luis Obispo was received which stated that there are no persons registered to vote in the territory of the Community Facilities District; and
WHEREAS, in connection with the formation of the Community Facilities District, there has been presented to the City Council an agreement entitled “Funding and Acquisition Agreement” (the “Funding Agreement”) to be entered into between the City and the landowners; and WHEREAS, the City Council now desires to proceed to establish the Community Facilities District.

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 hereby finds and determines as follows:
(a) All of the preceding recitals are true and correct; (b) Pursuant to Section 53350 of the Act, the Resolution of Intention designated two separate improvement areas for separate portions of the property to be included within the boundaries of the Community Facilities District (i.e., Improvement Area No. 1 and Improvement Area No. 2) so that each such portion of such property will be responsible only for the payment of special taxes that will be issued and sold and that are secured solely by such special taxes to finance specific public facilities for such portion of the property and Improvement Areas, including the amounts necessary to finance the Facilities, and the Improvement Areas are hereby designated;
(c) All prior proceedings with respect to the formation of the Community Facilities District prior to and during the Public Hearing which were conducted by the City Council were valid and in conformity with the requirements of the Act, and except to the extent inconsistent with this resolution, the Resolution of Intention is reaffirmed, and its provisions and findings are, to that same extent, incorporated herein by this reference;
(d) The Boundary Map was recorded on August 6, 2026, pursuant to Section 3110 et seq. of the California Streets and Highways Code, at page 56 of Book 6 of Maps of Assessment and Community

Attachment 1
Facilities Districts, and as Document No. 2026025176, in the official records of the County of San Luis Obispo;
(e) At the close of the Public Hearing, written protests, if any, to the establishment or extent of Community Facilities District or to any other matter contained in the Resolution of Intention, were submitted by less than fifty percent (50%) of the registered voters, or by less than six of the registered voters, if any, residing within the territory proposed to be included in the Community Facilities District.

Similarly, the City Council finds that at the close of the Public Hearing, such written protests, if any, were submitted by the owners of less than one-half of the area of land in the territory proposed to be included in the Community Facilities District and not exempt from the special tax. Thus, the City Council finds that is not precluded by the Act from proceeding further in this matter. The City Council further orders and determines that all protests, if any, that may have been submitted have been considered and are hereby overruled; and
(f) Twelve (12) or more persons have not been registered to vote within the territory of the Community Facilities District for each of the ninety (90) days preceding the close of the Public Hearing, and pursuant to Section 53326 of the Act, the vote in the Special Election (as defined below) provided for herein shall, therefore, be by the landowners within the Community Facilities District, and each landowner shall have one vote for each acre, or portion thereof, which he or she owns within the Community Facilities District which is not exempt from the special tax.

Section 2. Formation of District and Designation of Improvement Areas. The City of Paso Robles Community Facilities District No. 2026-1 (Beechwood - Facilities), County of San Luis Obispo, State of California is hereby established and the following Improvement Areas are designated therein:
“Improvement Area No. 1” and Improvement Area No. 2.” The boundaries of the Community Facilities District and the Improvement Areas therein are set forth and shown on the Boundary Map which is on file with the City Clerk and attached hereto as Exhibit C and incorporated herein, and said boundaries are hereby approved and established.

Section 3. Types of Facilities; Incidental Expenses.
(a) The facilities authorized to be financed by and through the Community Facilities District shall be those pubic facilities shown on Exhibit A hereto (the “Facilities”). The City Council finds that the Facilities do not in any way exceed the description of the authorized facilities proposed in the Resolution of Intention. All of the Facilities have an estimated useful life of five (5) years or longer and are necessary to meet increased demands placed on the City as a result of development occurring and anticipated to occur within the Community Facilities District.
(b) This authorization to finance the acquisition and construction of the Facilities includes incidental expenses for the Facilities, as such term is defined in Section 53317(c) of the Act, which will be incurred and may include, but not be limited to: (i) the cost of engineering, planning and designing such facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the Community Facilities District, issuance and administration of the bonds thereof, the determination of the amount of and collection of taxes, and the payment of taxes, and costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District, and (iii) any other expenses incidental to the construction, completion, acquisition, modification and inspection of the Facilities (the “Incidental Expenses”).

Attachment 1
(c) The Community Facilities District shall also finance all costs associated with the establishment of the Community Facilities District, administration thereof, the determination of the amount of any special taxes to be levied, the costs of collecting any special taxes, and costs otherwise incurred in order to carry out the authorized purpose of the Community Facilities District.

Section 4. Special Taxes and Appropriations Limit. Except where funds are otherwise available, a special tax sufficient to finance the Facilities and related Incidental Expenses, including but not limited to the payment of interest on and principal of bonds to be issued to finance the acquisition and construction of the Facilities, secured by the recordation of a continuing lien against all taxable or nonexempt real property in each Improvement Area of the Community Facilities District shall be annually levied within the boundaries of each such Improvement Area.

Particulars as to the rate and method of apportionment of the special taxes for each Improvement Area are set forth in the attached Exhibit “B” (each a “Rate and Method”), which is incorporated herein by this reference, which set forth in sufficient detail the rate and method of apportionment of the special taxes for each Improvement Area to allow each landowner or resident within each Improvement Area to clearly estimate the maximum amount that such person will have to pay, and specifies the conditions under which the obligation to pay the special taxes may be prepaid and permanently satisfied. Each Rate and Method also sets forth the tax year after which no further special taxes shall be levied or collected against any taxable parcel within the applicable Improvement Area. The Board finds that each Rate and Method does not in any way exceed the description of the proposed Rate and Method described in the Resolution of Intention.

Under no circumstances will the special taxes levied in any fiscal year against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the same Improvement Area by more than ten percent (10%) above the amount that would have been levied in that fiscal year had there not been any such delinquencies or defaults. Further, the maximum authorized Special Tax for financing the acquisition and construction of the Facilities that may be levied against any parcel used for private residential purposes is specified in each Rate and Method as a dollar amount. A parcel shall be considered “used for private residential purposes” not later than the date on which an occupancy permit or the equivalent for private residential use is issued and for such parcel.

The conditions under which the obligation to pay the special taxes may be prepaid and permanently satisfied are as set forth in each Rate and Method.

Pursuant to Section 53340 of the Act, the special taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the Community Facilities District may collect special taxes 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.

Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the special taxes shall attach to all non-exempt real property in the Community Facilities District, and that lien shall continue in force and effect until the collection of the special tax ceases. The Public Works Department of the City of El Paso de Robles, 1000 Spring Street, Paso Robles, California, is designated as the office responsible for annually preparing a

Attachment 1
current roll of special tax levy obligations by assessor’s parcel numbers and for estimating future special tax levies pursuant to Section 53340.2 of the Act.

Pursuant to Section 53325.7 of the Act, and subject to voter approval, the initial appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, for each Improvement Area of the Community Facilities District is established in the amount of $30,000,000.

Section 5. Exempt Properties. Pursuant to Section 53340 of the Act, and except as provided in Section 53317.3 of the Act, properties of entities of the state, federal, and local governments shall be exempt from the levy of special taxes.

Section 6. Necessity. The City Council finds that the Facilities are necessary to meet increased demands placed upon the City as a result of new development occurring within the boundaries of the Community Facilities District and the Improvement Areas therein.

Section 7. Report. The Report is hereby approved and is made a part of the record of the Public Hearing regarding the formation of the Community Facilities District and is ordered to be kept on file with the City Clerk as part of the transcript of these proceedings.

Section 8. Repayment of Funds Advanced or Work-in-Kind. Pursuant to Section 53314.9 of the Act, the City Council proposes to accept advances of funds or work-in-kind from private persons or private entities and to provide, by resolution, for the use of those funds or that work-in-kind for any authorized purpose, including but not limited to, paying any costs incurred by the City in creating the Community Facilities District, and to enter into one or more agreements, by resolution, with the persons or entities advancing the funds or work-in-kind to repay funds advanced, or to reimburse the persons or entities for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council.

Section 9. Prohibition of Owner Contracts. Pursuant to Section 53329.5 of the Act, the City Council finds that the public interest will not be served by allowing the owners of property within the Community Facilities District or each Improvement Area to enter into a contract in accordance with subdivision (a) of that section, and that such owners shall not be permitted to elect to perform the work and enter into a written contract with the City for the construction of the Facilities.

Section 10. Description of Voting Procedures. Except as otherwise provided in this section, the special elections on the propositions identified below (the “Special Elections”) shall be conducted by the City Clerk, as the elections official, in accordance with the provisions of the California Elections Code governing mail ballot elections and the Act, insofar as they may be applicable. The propositions submitted to the qualified voters at the Special Elections are (i) the propositions with respect to the Community Facilities District incurring bonded indebtedness for each Improvement Area, (ii) the propositions with respect to the levy of special taxes on parcels of taxable real property within each Improvement Area, and (iii) the proposition with respect to establishing an appropriations limit for the Community Facilities District in the amount of $30,000,000. The voting procedures to be followed in conducting the Special Elections shall be as follows:
(a) Except as otherwise provide below or waived, the Special Election shall be conducted by the City Clerk pursuant to the California Elections Code governing mail ballot elections of cities, and in particular, the provisions of Division 4 (commencing with Section 4000) of said Code, insofar as they may be applicable.

Attachment 1
(b) The Special Election shall be held on the earliest date, which may be selected by the City Council, following the adoption by the City Council of this resolution, a resolution determining the necessity for the Community Facilities District to incur bonded indebtedness pursuant to Section 53351 of the Act, and a resolution pursuant to Section 53326 of the Act submitting to the qualified electors the propositions with respect to the levy of special taxes to pay the costs of the facilities to be provided by the Community Facilities District and establishing an appropriations limit therefor, or such earlier date as the owners of land within the Community Facilities District and the City Clerk agree and concur is acceptable.
(c) Pursuant to Section 53326 of the Act, the time limits for conducting the Special Election may be waived by the qualified electors by unanimous consent and the City Clerk concurs in such earlier election date as shall be consented to by the qualified electors. (d) Pursuant to said Section 53326 of the Act, ballots for the Special Election shall be distributed to the qualified electors by the City Clerk by mail with return postage prepaid, or by personal service.
(e) Pursuant to applicable sections of the California Elections Code governing the conduct of mail ballot elections of cities, and specifically Division 4 (commencing with Section 4000) of the California Elections Code with respect to elections conducted by mail, the City Clerk shall mail or deliver to each qualified elector an official ballot in a form specified by the City Council in the resolution calling and consolidating the Special Election, and shall also mail or deliver to all such qualified electors a ballot pamphlet and instructions to voter, and unless waived as provided for in the Act, shall include a sample ballot identical in form to the official ballot but identified as a sample ballot, a statement pursuant to Section 9401 of that Code, an impartial analysis by the City Attorney pursuant to Section 9280 of that Code with respect to the ballot propositions contained in the official ballot, arguments and rebuttals, if any, pursuant to Sections 9281 to 9287, inclusive, and 9295 of that Code, a return identification envelope with prepaid postage thereon addressed to the City Clerk for the return of voted official ballots, and a copy of the Resolution of Intention, provided, however, that such conduct, statements, analysis and arguments may be waived pursuant to the Act with the unanimous consent of all the landowners who are qualified electors and shall be so stated in the resolution adopted by the City Council calling the Special Election. Such statements, impartial analysis and arguments, if any, shall be prepared by the City Attorney.
(f) The official ballot to be mailed or delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the name of the landowner-voter and the number of votes to be voted by the landowner-voter and shall have appended to it a certification to be signed by the person voting the official ballot which shall certify that the person signing the certification is the person who voted the official ballot, and if the landowner-voter is other than a natural person, that he or she is an officer of or other person affiliated with the landowner-voter entitled to vote such official ballot, that he or she has been authorized to vote such official ballot on behalf of the landowner-voter, that in voting such official ballot it was his or her intent, as well as the intent of the landowner-voter, to vote all votes to which the landowner-voter is entitled based on its land ownership on the propositions set forth in the official ballot as marked thereon in the voting square opposite each such proposition, and further certifying as to the acreage of the landowner-voter’s land ownership within the Community Facilities District. (g) The return identification envelope mailed or delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the following: (i) the name of the landowner, (ii) the

Attachment 1
address of the landowner, (iii) a declaration under penalty of perjury stating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot and is the person whose name appears on the identification envelope, (iv) the printed name and signature of the voter, (v) the address of the voter, (vi) the date of signing and place of execution of said declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only by the City Clerk as the election official.
(h) The instructions to voter form to be mailed or delivered by the City Clerk to the landowner-voters shall inform them that the official ballots shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted by 5:00 p.m. on the date of the election; provided that if all qualified voters have voted, the election shall be closed with the concurrence of the City Clerk.
(i) Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the election, the City Clerk shall canvass the votes cast in the Special Election, and shall file a statement with the City Council as to the results of such canvass and the election on each proposition set forth in the official ballot.

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 11. Funding and Acquisition Agreement. The form of Funding Agreement is hereby approved and the City Manager, the City Clerk, City Treasurer or either of their designees are authorized to execute and deliver a Funding Agreement for each Improvement Area on behalf of the City in the form presented to the City Council at the meeting at which this resolution is adopted, with such changes, additions, and deletions therein as the officer executing the same may approve, such approval to be conclusively evidenced by the execution and delivery thereof.

Section 12. Effective. This Resolution shall take effect immediately from and after the date of its passage and adoption.

APPROVED this 1
st day of September, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Attachment 1
_________
John R. Hamon, Jr., Mayor
ATTEST:
_______________________________________________
Melissa Martin, City Clerk
Exhibit A – Description of Authorized Facilities
Exhibit B – Rate and Method of Apportionment of Special Taxes Exhibit C – Boundary Map

Exhibit A

EXHIBIT A

DESCRIPTION OF AUTHORIZED FACILITIES
The proposed types of facilities to be financed by the Community Facilities District include:

Transportation facilities, park and recreation improvements and facilities, parkway and landscaping improvements, public safety facilities including police and fire buildings and equipment, public library and community center facilities, water, wastewater and storm drain improvements, street improvements, general governmental facilities, and dry utilities and all appurtenances and appurtenant work in connection with the foregoing facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.

The Community Facilities District is authorized to finance any capital improvement fee imposed by any local agency pursuant to Section 53313.5 of the Mello-Roos Act that serves or is required for the project.

1 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
IMPROVEMENT AREA NO. 1 OF CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2026-1
(BEECHWOOD - FACILITIES)
A Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels in Improvement Area No. 1 of City of Paso Robles Community Facilities District No. 2026-1 (Beechwood - Facilities) ("CFD No. 2026-1 (IA No. 1)") and collected each Fiscal Year commencing in Fiscal Year 2025-2026, 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. 2026-1 (IA No. 1), 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. 2026-1 (IA No. 1): 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. 2026-1 (IA No. 1) or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2026-1 (IA No. 1) or any designee thereof of complying with City, CFD No. 2026-1 (IA No. 1), 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. 2026-1 (IA No. 1), 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. 2026-1 (IA No. 1) for any other administrative purposes of CFD No. 2026-1 (IA No. 1), 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. "Assessor’s Parcel" means any real property to which an Assessor’s Parcel Number is assigned as shown on an Assessor’s Parcel Map.

Exhibit B

2 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
"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. 2026-1 (IA No. 1).
"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. 2026-1 (IA No. 1) under the Act. "Boundary Map" means a recorded map which indicates the boundaries of CFD No. 2026-1 (IA No. 1).
"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. 2026-1 (IA No. 1)" means the Improvement Area No. 1 of City of Paso Robles Community Facilities District No. 2026-1 (Beechwood – 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 in CFD No. 2026-1 (IA No. 1), 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 B

3 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - 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. "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. 2026-1 (IA No. 1).
“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 or homeowners association, including any master or sub-association, created for CFD No. 2026-1 (IA No. 1).

Exhibit B

4 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
"Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2026-1 (IA No. 1) 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. 2026-1 (IA No. 1) 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 Rate and Method of Apportionment of Special Taxes, City of Paso Robles, Community Facilities District No. 2026-1 (Beechwood - 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 does not increase the Special Tax levy on Final Mapped Property or Undeveloped Exhibit B

5 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the historical delinquency rate for CFD No. 2026-1 (IA No. 1) 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. 2026-1 (IA No. 1) 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 2025-2026, 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 B

6 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - 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 (> 2,650 SF) $5,985 PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (2,350 - 2,650 SF) $5,569 PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (2,050 - 2,350 SF) $5,153 PER DWELLING UNIT 4 RESIDENTIAL PROPERTY (1,750 - 2,050 SF) $4,738 PER DWELLING UNIT 5 RESIDENTIAL PROPERTY (1,450 - 1,750 SF) $4,322 PER DWELLING UNIT 6 RESIDENTIAL PROPERTY (<= 1,450 SF) $3,699 PER DWELLING UNIT 7 NON-RESIDENTIAL PROPERTY $42,377 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 $42,377, 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 B

7 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - 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 $42,377 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 2025-2026 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 monies 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 monies 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 monies 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.

Exhibit B

8 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
Sixth: If additional monies 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 Acres of Property Owner Association Property or Public Property in CFD No. 2026-1 (IA No. 1) 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 19.02 Acres. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which such Assessor’s Parcels or portions thereof within CFD No. 2026-1 (IA No. 1) 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.

Exhibit B

9 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)

G PREPAYMENT
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $9,825,000 or such lower amount (i) authorized by the Council to provide the public facilities to be funded under CFD No. 2026-1 (IA No. 1), 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. 2026-1 (IA No. 1) 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
Exhibit B

10 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
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.

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 Exhibit B

11 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
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. 2026-1 (IA No. 1), 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. 2026-1 (IA No. 1).

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 Exhibit B

12 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
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. 2026-1 (IA No. 1) 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. 2026-1 (IA No. 1) 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 Exhibit B

13 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
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 the minimum price at which Dwelling Units within a given Plan Type have sold or are expected to be sold in a normal marketing environment and shall not include prices for such Dwelling Units that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Plan Type. If such information is not available, means the base price of such Dwelling Units, estimated by an MAI Appraiser or 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. 2026-1 (IA No. 1) or the surrounding area as identified in the appraisal or the Price Point Study.
"Price Point Consultant" means any consultant or firm of such consultants selected by CFD No. 2026-1 (IA No. 1) 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. 2026-1 (IA No. 1), the City, or the developer, (d) does not have any substantial interest, direct or indirect, with or in CFD No. 2026-1 (IA No. 1), the City, any owner of real property in CFD No. 2026-1 (IA No. 1), or any real property in CFD No. 2026-1 (IA No. 1), and (e) is not connected with CFD No. 2026-1 (IA No. 1) or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 2026-1 (IA No. 1) 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. 2026-1 (IA No. 1), (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 1.80%.
"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. 2026- Exhibit B

14 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
1 (IA No. 1) 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).

At least 30 days prior to the issuance of the first series of Bonds, the following steps shall be taken for each Land Use Class of for-sale Residential Property in CFD No. 2026-1 (IA No. 1) for evaluating the Special Tax:

Step No.:

1. 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 for each Land Use Class of for-sale Residential Property in CFD No. 2026-1 (IA No. 1).
a. If the Total Effective Tax Rate for all Plan Types in a Land Use Class in CFD No. 2026-1 (IA No. 1) 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. 2026-1 (IA No. 1).
b. If the Total Effective Tax Rate for any Plan Type in a Land Use Class in CFD No. 2026-1 (IA No. 1) 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. 2026-1 (IA No. 1), 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.

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

1.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. 2026-1 (IA No. 1). 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 1.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 1.a. A reduction to the Assigned Special Tax in one Land Use Class shall not require a reduction in any other Land Use Class.

3. 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. 2026-1 (IA No. 1) 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. 2026-1 (IA No. 1) and shall, as of such date, be Exhibit B

15 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
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 and 2 of this section shall be performed based on a new Price Point Study.

4. After the execution by CFD No. 2026-1 (IA No. 1) of the acknowledgement on the Certificate to Amend the Special Tax, CFD No. 2026-1 (IA No. 1) shall cause to be recorded in the records of the County Recorder an Amended Notice of Special Tax Lien for CFD No. 2026-1 (IA No. 1) reflecting the Assigned Special Tax for CFD No. 2026-1 (IA No. 1) set forth in such Certificate to Amend the Special Tax.

5. If the Assigned Special Tax is not required to be changed for any Land Use Class based on the calculations performed under step 1 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. 2026-1 (IA No. 1) 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 2074-2075. 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 B

A-1 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)

EXHIBIT A

CERTIFICATE TO AMEND THE SPECIAL TAX
IMPROVEMENT AREA NO. 1 OF CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2026-1 (BEECHWOOD -

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. 2026- 1 (IA No. 1) set forth in Table 1 of the Rate and Method of Apportionment for CFD No. 2026-1 (IA No. 1).

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. 2026-1 (IA No. 1) shall be amended and restated in full as follows:

Table A-1: Assigned Special Tax for Developed Property
Land Use
Class
Description Assigned Special Tax
1 RESIDENTIAL PROPERTY (> 2,650 SF) [$ ] PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (2,350 - 2,650 SF) [$ ] PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (2,050 - 2,350 SF) [$ ] PER DWELLING UNIT 4 RESIDENTIAL PROPERTY (1,750 - 2,050 SF) [$ ] PER DWELLING UNIT 5 RESIDENTIAL PROPERTY (1,450 - 1,750 SF) [$ ] PER DWELLING UNIT 6 RESIDENTIAL PROPERTY (<= 1,450 SF) [$ ] PER DWELLING UNIT 7 NON-RESIDENTIAL PROPERTY $42,377 PER ACRE

4. Upon execution of the certificate by the City and CFD No. 2026-1 (IA No. 1), the City shall cause an amended Notice of Special Tax Lien for CFD No. 2026-1 (IA No. 1) 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. 2026-1 (IA No. 1), receipt of this certificate and modification of the Rate and Method of Apportionment as set forth in this certificate.

Community Facilities District No. 2026-1 (Beechwood - Facilities) of the City of Paso Robles.

By: Date as of:

Exhibit B

1 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
IMPROVEMENT AREA NO. 2 OF CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2026-1
(BEECHWOOD - FACILITIES)
A Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels in Improvement Area No. 2 of City of Paso Robles Community Facilities District No. 2026-1 (Beechwood - Facilities) ("CFD No. 2026-1 (IA No. 2)") and collected each Fiscal Year commencing in Fiscal Year 2025-2026, 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. 2026-1 (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. 2026-1 (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. 2026-1 (IA No. 2) or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2026-1 (IA No. 2) or any designee thereof of complying with City, CFD No. 2026-1 (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. 2026-1 (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. 2026-1 (IA No. 2) for any other administrative purposes of CFD No. 2026-1 (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. "Assessor’s Parcel" means any real property to which an Assessor’s Parcel Number is assigned as shown on an Assessor’s Parcel Map.

Exhibit B

2 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)
"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. 2026-1 (IA No. 2).
"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. 2026-1 (IA No. 2) under the Act. "Boundary Map" means a recorded map which indicates the boundaries of CFD No. 2026-1 (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. 2026-1 (IA No. 2)" means the Improvement Area No. 2 of City of Paso Robles Community Facilities District No. 2026-1 (Beechwood – 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 in CFD No. 2026-1 (IA No. 2), 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 B

3 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - 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. "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. 2026-1 (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 or homeowners association, including any master or sub-association, created for CFD No. 2026-1 (IA No. 2).

Exhibit B

4 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)
"Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2026-1 (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. 2026-1 (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 Rate and Method of Apportionment of Special Taxes, City of Paso Robles, Community Facilities District No. 2026-1 (Beechwood - 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 does not increase the Special Tax levy on Final Mapped Property or Undeveloped Exhibit B

5 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)
Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the historical delinquency rate for CFD No. 2026-1 (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. 2026-1 (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 2025-2026, 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 B

6 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - 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 (> 2,500 SF) $5,985 PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (2,300 - 2,500 SF) $5,569 PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (2,100 - 2,300 SF) $5,153 PER DWELLING UNIT 4 RESIDENTIAL PROPERTY (1,900 - 2,100 SF) $4,738 PER DWELLING UNIT 5 RESIDENTIAL PROPERTY (1,700 - 1,900 SF) $4,392 PER DWELLING UNIT 6 RESIDENTIAL PROPERTY (1,500 - 1,700 SF) $4,066 PER DWELLING UNIT RESIDENTIAL PROPERTY (<= 1,500 SF) $3,699 PER DWELLING UNIT 7 NON-RESIDENTIAL PROPERTY $42,800 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 $43,265, 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 B

7 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - 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 $43,265 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 2025-2026 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 monies 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 monies 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 monies 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.

Exhibit B

8 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)
Sixth: If additional monies 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 Acres of Property Owner Association Property or Public Property in CFD No. 2026-1 (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 18.17 Acres. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which such Assessor’s Parcels or portions thereof within CFD No. 2026-1 (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.

Exhibit B

9 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)

G PREPAYMENT
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $10,040,000 or such lower amount (i) authorized by the Council to provide the public facilities to be funded under CFD No. 2026-1 (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. 2026-1 (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
Exhibit B