Agenda packet, regular meeting — Patterson City Council, January 16, 2024 (part 1 of 2)

City of Patterson Page 1 Updated 1/11/2024 2:11 PM
Agenda
City of Patterson
City Council Regular Meeting
West Patterson Financing Authority Meeting
January 16, 2024
7:00 PM
Council Chambers
1 Plaza
Patterson, CA 95363

PUBLIC MEETING GUIDELINES
City of Patterson City Council meetings are conducted in person at City Hall Council Chambers. As a courtesy, and technology permitting, members of the public may participate virtually. However, the City cannot guarantee that the public’s access to teleconferencing and translating technology will be uninterrupted, and technical difficulties may occur from time to time.

MEMBERS OF THE PUBLIC MAY PARTICIPATE IN THE MEETING IN PERSON OR VIA TELECONFERENCE BY CALLING 1-669-900-9128, MEETING ID: 693 538 4239, PASSWORD: 20995363. JOIN FROM A PC, MAC, IPAD, IPHONE, OR ANDROID DEVICE BY USING THIS URL:
https://us02web.zoom.us/j/6935384239?pwd=ZmZwMFdYajRsTjlKTnNTamZCWXFXdz09 The meeting will be televised or available for public viewing on comcast cable channel 7 on the following days: Wednesday at 3:00 p.m., Friday at 8:00 p.m. and Saturday at 12:00 p.m. Or watch on internet Vimeo link: https://vimeo.com/channels/patterson/ To access written translation during the meeting, please scan the QR Code or click this link:

Para acceder a la traducción escrita durante la reunión, escanee el código QR o haga clic en este enlace:
https://attend.wordly.ai/join/HSEU-6978
Choose Language and Click Attend / Elija el idioma y haga clic en Asistir Use a headset on your phone for audio or read the transcript on your device.

The City Council agenda and supporting public documents are available for viewing in City Hall, City of Patterson Page 2 Updated 1/11/2024 2:11 PM
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (209) 895-8012. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102-35.104 ADA Title II] The City Council agenda and supporting public documents are available for viewing in City Hall, Administration Department, 1 Plaza, 2nd Floor, Patterson, California, during normal business hours. The City Council agenda and supporting public documents are also available online on the City web site www.ci.patterson.ca.us listed under Popular Links “City Council Agendas” or please call or email the City Clerk at (209) 895-8012 or [email protected] If you wish to be notified of future City Council Meetings, please visit our web site www.ci.patterson.ca.us go to Popular Links “City Council Agendas” and Subscribe to “RSS” ═══════════════════════════════════════════════════════════════

1. Call to Order

2. Pledge of Allegiance

3. Statements of Conflict

4. Certificate

4.1. Parks, Recreation & Beautification Commission Award to Soroptimist International of Patterson.

5. Items from the Public
Any member of the audience desiring to address the Council regarding a matter on the agenda, please raise your hand or step to the podium, or if using the zoom app by pressing *9 on your cell phone at the time the item is announced by the Mayor. The public wishing to address the Council on items that do not appear on the agenda may do so; however, Council will take no action other than referring the item to staff for study and analysis and may place the item on a future agenda (Resolution 92-25)
In order that all interested parties have an opportunity to speak, any person addressing the Council will be limited to a maximum of five (5) minutes unless the Mayor grants a longer period of time (Resolution 92-25)
Please State Your Name and City for the Record.

6. Consent Calendar
All items are approved by a single action. Any item may be removed from the Consent Calendar for separate discussion upon request from a member of the Public, Staff and/or Councilmember.

6.1. Motion to Waive Readings - All Readings of Ordinances and Resolutions, Except by Title are hereby waived.

6.2. Approve Minutes of Regular Meeting - December 5, 2023 (7:00 PM)

6.3. Approve City Department Reports for the Months of September thru December 2023 (Public Works, Fire Department and Community Development Department) City of Patterson Page 3 Updated 1/11/2024 2:11 PM

6.4. Approve City Commission Reports for the Months of September thru December 2023 (Parks Recreation & Beautification Commission)

6.5. Approve Resolution No. 2024- 01 Adopting the Memorandum of Agreement among the Delta-Mendota Subbasin and Groundwater Sustainability Agencies and Approve Resolution No. 2024- 02 Adopting the Special Projects Agreement for Development of a Single Groundwater Sustainability Plan for the DeltaMendota Subbasin

6.6. Accept Donation of a Tiller Truck from Kern County to be used for Fire Department Training.

6.7. Adopt Resolution No. 2024-03, Approving a Retainer Consultant Services Agreement with Bellecci, Black Water Consulting Engineers, NorthStar Engineering Group, O’Dell Engineering, and Provost & Pritchard for General Engineering and Surveying Services for a term of three (3) years, and Authorizing the City Manager to Execute the Agreement.

6.8. Reject all bids for the Well #8 Tank Recoating Project and directing staff to readvertise at a later date.

7. Presentation/Action Item
Adjourn to West Patterson Financing Authority
a. Call to Order
b. Roll Call (Secretary)

7.1. Finance - Adopt Resolution No. 2024-01 Authorizing the Issuance of Special Tax Bonds for and on behalf of the West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson), approving and directing the execution of Supplement No. 1 to Fiscal Agent Agreement, approving the form of Preliminary Official Statement, approving sale of such bonds, approving other related documents and actions, and authorize the Finance Department to make the necessary budget adjustments.
c. Staff Report: Finance Director Riedeman
d. WFPA Board: Motion to Adopt Resolution No. 2024-01
e. Adjourn

8. Public Hearing
City of Patterson Page 4 Updated 1/11/2024 2:11 PM

8.1. Planning Department - (Motion to Continue the Public Hearing to February 6, 2024 Regular Council Meeting) Approve Resolution No. 2023-50, approving the Regional Transportation Impact Fee Report and adopting updated development impact fees related to transportation, effective December 5, 2023. Per Ordinance No. 608 (M.C. Section 3.64) related to the approval of transportation development impact fees, motion to approve Resolution No. 2023-50 approving the Regional Transportation Impact Fee Report and adopting updated development impact fees related to transportation, effective December 5, 2023.

Staff Report: Community Development Director Stice
Mayor: Open/Close the Public Hearing
Council: (Motion to Continue the Public Hearing to February 6, 2024 Regular Council Meeting) Approve Resolution No. 2023-50, approving the Regional Transportation Impact Fee Report and adopting updated development impact fees related to
transportation, effective December 5, 2023. Per Ordinance No. 608 (M.C. Section 3.64) related to the approval of
transportation development impact fees, motion to approve Resolution No. 2023-50 approving the Regional Transportation Impact Fee Report and adopting updated development impact fees related to transportation, effective December 5, 2023.

9. City Council Reports
A. Confirmation or New Selection of Stanislaus County Council of Governments (StanCOG) Policy Board Member and Two (2) Alternates (Mayor is Primary; Councilmember Roque is alternate)
B. Selection of 2024-2025 Mayor pro Tem
(Currently Mayor Pro Tem Roque)
C. Councilmember Alves
. Stanislaus Homeless Alliance (Councilmember Roque alternate) . Stanislaus County Hazardous Waste Advisory Committee (Councilmember Farinha alternate)
D. Councilmember Romero
. Westside Health Care Task Force (Councilmember Alves alternate) E. Councilmember Farinha
. San Joaquin Valley Air Pollution Control District (Councilmember Romero alternate)
City of Patterson Page 5 Updated 1/11/2024 2:11 PM
F. Mayor Pro Tem Roque
. (EDAC) Stanislaus County Economic Development Action Committee (Mayor Clauzel alternate)
. Workforce Development Board (Mayor Clauzel alternate) G. Mayor Clauzel
. Stanislaus County Mayor's Meeting
. StanCOG (Mayor Pro Tem Roque alternate)
. League of California Cities (Councilmember Farinha 1st alternate, Councilmember Alves 2nd alternate)

10. Other Matters

11. Adjournment

DECLARATION OF POSTING
I, Aracely Alegre, City Clerk of the City of Patterson, California do hereby declare that the foregoing notice was posted on the Bulletin Board at City Hall, 1 Plaza, Patterson, California on Jan. 11, 2024.

The Agenda is also posted for public view on the Bulletin Boards of the Hammon Senior Center, 1033 W. Las Palmas, Patterson, the Patterson Branch Library, 46 N. Salado Avenue, Patterson, and the City of Patterson City Web Site www.ci.patterson.ca.us Aracely Alegre, City Clerk
City of Patterson
Direct No. (209) 895-8012
Email [email protected]
City of Patterson Page 1 Updated 12/7/2023 9:44 AM
City Of Patterson
Regular Meeting Minutes
December 5, 2023
City Manager
Ken Irwin
City Attorney
Nubia Goldstein
Deputy City Attorney
Douglas White www.ci.patterson.ca.us
Mayor
Michael Clauzel
City Council
Shivaugn Alves, District A
Jessica Romero, District B
Dominic Farinha, District C
Carlos Roque, District D
City Clerk
Aracely Alegre

1. Call to Order
Attendee Name Title Status Arrived
Michael Clauzel Mayor Present
Shivaugn Alves District A Present
Jessica Romero District B Present
Dominic Farinha District C Excused
Carlos Roque District D Present
The regular meeting of the City Council of the City of Patterson was called to order in the City of Patterson at 7:02 p.m. by Mayor Clauzel.

City Staff Present:

1. City Manager Irwin

2. City Attorney Goldstein

3. IT Manager Ford

4. Associate Planner Rodriguez

5. Public Works Director Willett

6. Finance Director Riedeman

7. Interim Fire Chief Frye

8. Director of Engineering, Building and Capital Projects Ulloa

9. City Planner Andrews

10. Human Resources Director Guillory-Jones

11. Police Sargent Barringer

12. Recreation and Community Services Director Weaver

13. Community Development Director Stice

14. City Clerk Alegre

2. Pledge of Allegiance

6.2 Packet Pg. 6
Minutes Acceptance: Minutes of Dec 5, 2023 7:00 PM (Consent Calendar) City of Patterson Page 2 Updated 12/7/2023 9:44 AM

3. Statements of Conflict
None.

4. Certificate

4.1. Natalie Arriaza of PHS
Mayor Clauzel presented the Certificate of Achievement to Natalie Arriaza.

5. Items from the Public
Armand Arrambide, Patterson Resident - addressed city council regarding the homeless situation in town.

Gavin Kline Field Representative with the office of Congressman Duarte - addressed city council to provide a legislative update.

Kandace Weyhrauch, Chamber of Commerce - addressed city council regarding the Christmas Light Parade event and provided an update on upcoming events.

Pat Maisetti, Patterson Resident - addressed city council regarding the following: policy for city employees not being allowed volunteer at the Hammon Senior Center; Hammon Senior Board of Directors Finances; refrigerator not working at the Hammon Senior Center; Repairs needed at the Hammon Senior Center, bathroom not working, doors don't open for handicap accessibility; Weeds around town.

Susan Sawyer, Patterson Branch Librarian - addressed city council and provided an update on upcoming events and services offered.

6. Consent Calendar
Councilmember Alves moved to approve Consent Calendar Items 5.1 through 5.5. The motion was seconded by Mayor Pro Tem Roque and unanimously approved by a 4-0 roll call vote.

RESULT: ADOPTED
MOVER: Alves
SECONDER: Roque
AYES: Clauzel, Alves, Romero, Roque
EXCUSED: Farinha

6.1. Motion to Waive Readings - All Readings of Ordinances and Resolutions, Except by Title are hereby waived.

6.2. Approve Minutes of Special Meeting/Closed Session - November 7, 2023 (6:00 PM)

6.3. Approve Minutes of Regular Meeting - November 7, 2023 (7:00 PM)

6.4. Adopt Resolution No. 2023-56 and Approve Addendum No. 3 to the Street Sweeping Services Agreement with Sweeping Corp of America (SCA), CA, LLC, for a Five-Year Extension for Continued City-Wide Street Sweeping Services, Beginning July 1, 2023, through June 30, 2028, and Authorizing the Finance Department to Adjust the Fiscal Year 2023-24 Budget

6.5. Approve the Job Descriptions for Assistant City Manager, Deputy Director of Engineering, and Human Resources Technician.

6.2 Packet Pg. 7
Minutes Acceptance: Minutes of Dec 5, 2023 7:00 PM (Consent Calendar) City of Patterson Page 3 Updated 12/7/2023 9:44 AM

7. Public Hearing

7.1. Planning Department - (Public Hearing continued from November 7, 2023 Regular Council Meeting) Approve Resolution No. 2023-50, approving the Regional Transportation Impact Fee Report and adopting updated development impact fees related to transportation, effective December 5, 2023. Per Ordinance No. 608 (M.C. Section 3.64) related to the approval of transportation development impact fees, motion to approve Resolution No. 2023-50 approving the Regional Transportation Impact Fee Report and adopting updated development impact fees related to transportation, effective December 5, 2023.

By consensus of the City Council, Item 7.1 was continued to the Tuesday, January 16, 2024 Regular City Council meeting.

At 7:26 p.m. Mayor Clauzel opened the Public Hearing. There were no comments.

RESULT: CONTINUED

7.2. Planning Department - Approve Resolution No. 2023-55, approving a Vesting Tentative Subdivision Map consisting of 247 lots on 46.23 acres of land, also known as The Villages of Patterson - Sycamore Ranch II.

Community Development Stice and Associate Planner Rodriguez reviewed their report.

At 7:32 p.m. Mayor Clauzel opened the Public Hearing.

Karen Willard, Patterson Resident - addressed city council asking for clarification if the pocket parks are a retention basin?
Pat Maisetti, Patterson Resident - addressed city council regarding the need for low income and senior housing developments.

Associate Planner and City Manager Irwin addressed Ms. Maisetti's concerns.

Kandace Weyhrauch, Patterson Resident - addressed city council asking for clarification on pocket park definition. Ms. Weyhrauch also addressed the narrow streets and requirements for school buildings in that area.

City Manager Irwin addressed Ms. Weyhrauch's concerns.

Elias Funez, Patterson Resident - addressed city council regarding timeline on when English Oak Park will be built.

Albertina Reynoso, Patterson Resident- addressed city council in support of Elias Funez and Kandace Weyhrauch regarding housing and the need for low income and senior housing. Ms. Reynoso also expressed her gratitude for the new translation services.

6.2 Packet Pg. 8
Minutes Acceptance: Minutes of Dec 5, 2023 7:00 PM (Consent Calendar) City of Patterson Page 4 Updated 12/7/2023 9:44 AM
Mayor Pro Tem Roque addressed Ms. Reynoso's concerns.

At 7:46 p.m. there being no further comments, Mayor Clauzel Closed the item to public comments.

Council addressed the following:
- Need for park space
- Timeline for English Oak Park
- Accessibility to food areas for the subdivision
- Affordable housing within subdivision
Mayor Pro Tem Roque moved to approve Resolution No. 2023-55. The motion was seconded by Councilmember Romero and unanimously approved by a 4-0.

RESULT: APPROVED
MOVER: Roque
SECONDER: Romero
AYES: Clauzel, Alves, Romero, Roque
EXCUSED: Farinha

7.3. Planning Department - Approve the CEQA Addendum to the 2010 General Plan EIR for the Parks and Recreation Master Plan (PRMP) and adopt the Parks and Recreation Master Plan.

Community Development Director and City Planner Andrews reviewed their report.

At 8:00 p.m. Mayor Clauzel opened the Public Hearing.

Elias Funez, Patterson Resident - addressed city council regarding his concerns with rushing the project and having basins as parks. Basins exclude handicapped and elderly people. South side of town in need for recreation space.

Kandace Weyhrauch - addressed city council regarding the following: concerns with private service providers included in the master plan, soccer complex as detention basins, clarification regarding park at the corner of Sycamore Avenue and Olive Avenue.

Karen Willard, Patterson Resident - addressed city council and read a letter from Adrienne Chaney, former Parks and Recreation Director for the City of Patterson, regarding parks not being accessible to the elderly and handicapped. Ms. Willard also read a letter from Colton Dennis, Executive Director at the Merced County Arts Council, regarding detention basins being used as parks.

At 8:12 p.m. there being no further comments, Mayor Clauzel closed the item to public comments.

City Council addressed the following:

6.2 Packet Pg. 9
Minutes Acceptance: Minutes of Dec 5, 2023 7:00 PM (Consent Calendar) City of Patterson Page 5 Updated 12/7/2023 9:44 AM
- Map on page 206 of agenda packet, the natural park and trails are needs to be included in the original master plan.
- Detention basin, steps the city will take to make sure the basin is usable after rain
- How many parks will be unusable when it rains?
- Parks being ADA accessible
- area by the river to be part of the Masters plan
City Manager Irwin addressed city council’s concerns.

Mayor Pro Tem Roque motioned to Approve the CEQA Addendum to the 2010 General Plan EIR for the Parks and Recreation Master Plan (PRMP) and adopt the Parks and Recreation Master Plan. The motion was seconded by Councilmember Romero and unanimously approved by a 4-0 roll call vote.

RESULT: APPROVED
MOVER: Roque
SECONDER: Romero
AYES: Clauzel, Alves, Romero, Roque
EXCUSED: Farinha

8. City Staff Reports

8.1. City Attorney - Consider adoption of Resolution No. 2023-51 regarding the use of Zoom during City Council meetings, limiting Zoom participation to City of Patterson staff and consultants attending a City Council meeting remotely, but prohibiting public comment via Zoom unless a City Council member is participating in the meeting via Zoom.

City Attorney Goldstein reviewed her report.

City Council addressed the following:
- Transparency and accessibility for the community, zoom allows for more public participation
- Improved communication due to technology and the need to adapt - Need for zoom for public participation
At 8:31 p.m. Mayor Clauzel opened the item to public comments.

Kandace Weyhrauch, Patterson Resident - addressed city council in opposition of item 8.1
Elias Funez, Patterson Resident - addressed city council in opposition of item 8.1 At 8:37 p.m. there being no further comment, Mayor Clauzel closed the item to public comments.

6.2 Packet Pg. 10
Minutes Acceptance: Minutes of Dec 5, 2023 7:00 PM (Consent Calendar) City of Patterson Page 6 Updated 12/7/2023 9:44 AM
Councilmember Alves motioned to reinstate zoom and continue research for new technology. The motion was seconded by Councilmember Romero and unanimously approved by a 4-0 roll call vote.

RESULT: FAILED
MOVER: Alves
SECONDER: Romero
AYES: Clauzel, Alves, Romero, Roque
EXCUSED: Farinha

9. City Council Reports
A. Councilmember Alves
Nothing to report.
. Stanislaus Homeless Alliance (Councilmember Roque alternate) . Stanislaus County Hazardous Waste Advisory Committee (Councilmember Farinha alternate)
B. Councilmember Romero
Nothing to report.
. Westside Health Care Task Force (Councilmember Alves alternate) C. Councilmember Farinha
. San Joaquin Valley Air Pollution Control District (Councilmember Romero alternate)
D. Mayor Pro Tem Roque
Mayor Pro Tem Roque provided an update on Stanislaus County Economic Development Action Committee projects.
. (EDAC) Stanislaus County Economic Development Action Committee (Mayor Clauzel alternate)
. Workforce Development Board (Mayor Clauzel alternate) E. Mayor Clauzel
. Stanislaus County Mayor's Meeting
Next meeting will be held on December 6, 2023.
. StanCOG (Mayor Pro Tem Roque alternate)
. League of California Cities (Councilmember Farinha 1st alternate, Councilmember Alves 2nd alternate)

6.2 Packet Pg. 11
Minutes Acceptance: Minutes of Dec 5, 2023 7:00 PM (Consent Calendar) City of Patterson Page 7 Updated 12/7/2023 9:44 AM

10. Other Matters
Councilmember Alves expressed her gratitude to the community and City for putting together the Christmas Light parade.

11. Adjournment
There being no further business, the regular meeting of the City Council of the City of Patterson of December 5, 2023 was adjourned at 8:43 p.m.

Approved by the Patterson City Council on January 16, 2024.

6.2 Packet Pg. 12
Minutes Acceptance: Minutes of Dec 5, 2023 7:00 PM (Consent Calendar) City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Aracely Alegre, City Clerk
MEETING DATE: January 16, 2024
ITEM NO: 6.3
SUBJECT: Approve City Department Reports for the Months of September thru December 2023 (Public Works, Fire Department and Community Development)

RECOMMENDATION
Motion to Approve City Department Reports for the Months of September thru December 2023 (Public Works, Fire Department and Community Development)

6.3 Packet Pg. 13
1 DEPARTMENT OF PUBLIC WORKS
“Public Works – Improving Your Quality of Life”

MONTHLY STAFF REPORT
September 2023
Administration & Environmental Compliance Division
 The formal SRF loan agreement was approved and has been fully executed for the WQCF LEED Administration Building Project. The bids were opened, and the contract has been awarded to BOBO Construction. The project should be completed in the next month. A site inspection is scheduled with the State Water Board SRF division in November (Last update:

August 2023).
 The city has received SRF Loan funding for a city water meter system replacement project.

The project will replace older water meters in the city to help with water system revenue losses and improve overall utility system management. The project was awarded, and the Contractor (Flowline Inc.) has been replacing meters. Over 80% of the meters have been replaced. (Last update: August 2023).
 Staff have been working with Willdan Consulting on updating several City facility, Parks and Recreation impact fees. Staff has met with the consultant and the Parks & Recreation Master Plan consultant during October to go over the costs associated with parks/recreational facilities. The impact fee study is complete, and staff will be presenting the item to the Council for approval of the new proposed fees in the next couple of months. (Last Update:

August 2023).
 Staff has been working closely with Planning, Recreation/Community Services, and Engineering on the new Parks Master Plan update. Community Outreach has been in progress for over two months through attendance at community events, surveys have been collected via the City’s social media, website, and other avenues. Once the plan is complete, staff will present this item to the Council for approval. The Downtown Visioning and Master plan was presented to the Parks, Recreation and Beautification Commission on September 21, 2022. The item will be coming to the City Council for approval in the next couple of months. (Last Update: June 2023).
 The Solid Waste Division completed a quarterly round of inspections totaling 40 inspections.

Education materials were provided to the business community regarding recycling laws. (Last Updated September 2023).

Grants and Special Projects
 South Park Per Capita Grant: The city had the bid opening and the item is scheduled for the October 17th City Council agenda to award the construction contract. (Last Update:

6.3.a
Packet Pg. 14
Attachment: Monthly Staff Reports (Monthly Department Reports) 2 was submitted to the State in December 2018 and the City has 10 years from this date to complete the implementation of their full trash capture plan. Design funds were approved in the FY 19/20 budget. Proposals for design were received and a consultant agreement is currently in progress. The kickoff meeting was held, and the project is currently in progress. The city will be submitting their implementation plan and full trash capture device option(s) to the State. Once approved, staff will work on the next phases of this project which includes preliminary projects design/bid plans.

The city will be exploring Prop 1 grant opportunities for this project. (No change). o WQCF Administration LEED Building. Construction is close to completion. The Contractor is working with the city to finalize all remaining items. The building is scheduled for occupancy in November. (Last update: August 2023). o Ward Avenue Sewer Lift Station Rehabilitation Project. Bids were received, all were significantly over budget. The council has rejected all bids. (Last update: June 2023). o Slurry Seal Project. The scope of the work is being determined and preliminary design is underway. (Last update: June 2023).

F.O.G (Fats, Oils, & Grease) Program
The city currently has two Public Works inspectors conducting FOG and stormwater inspections.

FOG inspections are being performed on a regular basis to ensure compliance. (Last Update:

April 2023).

Storm Water Pollution Prevention Program
 A new Phase II Stormwater Permit is in progress at the State level. Once it is adopted, it will be implemented. The city must comply with everything that is in the current permit. It is anticipated that the new permit will be implemented in 2024. Under this new permit, the school districts will be brought in and will be required to have their own stormwater programs. (Last Update: August 2023).
 The City awarded the design contract to Stantec Engineering for the design of the City’s trash capturing system. The System will consist of trash capturing devices and improvements at the Olive Avenue regional basin and Salado Creek. The kickoff meeting is scheduled for September 14, 2023. The city is exploring grant opportunities for this project through the State Water Resources Control Board. (Last updated: August 2023).

Water Division & Water Conservation Program
The State Water Resources Control Board has rescinded the mandatory conservation standards that have been in place since 2015. The reporting requirements and prohibitions on water waste will remain. The current prohibitions against wasteful water use practices include outdoor watering during or within 48 hours after a rain event; hosing down a sidewalk instead of using a broom or a brush; and overwatering a landscape to where water is running off onto the sidewalk or into the gutter.

6.3.a
Packet Pg. 15
Attachment: Monthly Staff Reports (Monthly Department Reports) 3 September 2023 Water Production
Well Production
2 0
4- NP 2,264,000
5 46,267,000
6 0
7 0
8 65,302,954
9 34,080,000
11 38,849,000
Keystone-NP 4,000
Floragold-NP 17,442,900
TOTAL 204,209,854

1. Number of Follow-ups: 0

2. Number of Warning/Violations: 74

3. Number of Penalties: 4

4. Water Service Connection Requests: 33

5. Water Service Connection Turnoffs: 0

6. Water Work Orders: 12- zero usage, high usage, new meter, leak at meter and meter change.

Committees & Commission
Parks & Recreation and Beautification Commission:
 A regular meeting was held on August 14, 2023, and the agenda and minutes are on the Council’s agenda for review. The next meeting is scheduled for September 20, 2023. (Last Update: August 2023).
 Safety (JEMSAC) Committee: The committee held its monthly meeting on August 17, 2023.

The Safety Committee will hold its next meeting on September 21, 2013. (Last update: August 2023).

Permits Issued
Encroachment Permits, Fire Hydrant Use Permits, Other Permits Issued by Public Works:
 Encroachment Permit = 6
 Fire Hydrant Use Permits = 1
(Last update: September 2023).

6.3.a
Packet Pg. 16
Attachment: Monthly Staff Reports (Monthly Department Reports) 4 Streets/Collections Division
Work Orders: Streets/Sidewalks = 20 Alleys/Garbage = 3 Collections = 11 Seasonal Tasks:
 Storm drains maintenance.
 Repaired potholes throughout the city.
 Performed sewer maintenance.
 Performed sidewalk repairs.
(Last update: September2023).

Electrical Division
Work Orders: Streetlights = 7
Seasonal Tasks this Month:
 Repaired streetlights throughout the city.
 Reviewed Electrical/SCADA plans for Engineering.
 Continued upgrades at the WQCF.
 Worked on Internet issues at the WQCF.
(Last Update: September 2023).

Urban Forestry Division
Work Orders: Urban Forestry: 71
Seasonal Tasks this Month:
 Performed tree maintenance.
 Addressed requests for service.
(Last update: September 2023).

Parks, Landscape & Building Maintenance Divisions
Park Reservations: All parks are currently closed to reservations and are on a first come first served basis.

Work Orders: Building Maintenance: 10 Parks: 13
Seasonal Tasks & Projects:
 Continued maintenance of all parks and easements.
 Focused on maintenance pruning in LMDs.
 Performed routine maintenance at City Hall.
(Last update: September 2023).

Fleet Services Division
Number of PW equipment repaired/serviced: Number of PW equipment repaired/serviced:
45 Public Works, Recreation and Community Service vehicles and 5 Fire vehicles. (Last update:

September 2023).

6.3.a
Packet Pg. 17
Attachment: Monthly Staff Reports (Monthly Department Reports) 5 Water Quality Control Facility (WQCF)

MONTHLY FLOWS AND AVERAGES – September 2023
AUGUST 2023 INFLUENT SPOD* NPOD* AIPS

TOTAL FLOW,
MG/ month

51.313 36.630 16.412 3.032
AVG FLOW, MGD 1.710 1.062 .547 .101
HIGH FLOW, MGD 1.933 1.283 .650 .187
LOW FLOW, MGD 1.574 .943 .460 0.000
Total Capacity,
MGD

2.25 1.25 .800 .200
* SPOD- South Plant Oxidation Ditch (new)              * NPOD- North Plant Oxidation Ditch (old) Alarms/Callouts:

Alarms = 245
Callouts = 6
Seasonal Tasks:

1. AIPS back online.

1. Process control under adjustment for current weather conditions.

2. Continuing Annual PM work.

3. Washer compactor back online.

4. North plant aerator #2 fixed back online.

LABORATORY RESULTS
AUGUST 2023
Avg.

BOD5 TSS TDS pH EC NO3-N TKN TN-N Na Cal
Influent 170 150 * 7.54 * * * * * *
Effluent. 2.3 4.0 1200 7.86 1860 .40 3.1 3.5 240 330
* Not required
(Last update: September 2023).

6.3.a
Packet Pg. 18
Attachment: Monthly Staff Reports (Monthly Department Reports) 1 DEPARTMENT OF PUBLIC WORKS
“Public Works – Improving Your Quality of Life”

MONTHLY STAFF REPORT
October 2023
Administration & Environmental Compliance Division
 The formal SRF loan agreement was approved and has been fully executed for the WQCF LEED Administration Building Project. The project is substantially complete with a few remaining items. A site inspection is scheduled with the State Water Board SRF division is scheduled for November 8
th (Last update: October 2023).
 The city has received SRF Loan funding for a city water meter system replacement project.

The project will replace older water meters in the city to help with water system revenue losses and improve overall utility system management. The project was awarded, and the Contractor (Flowline Inc.) has been replacing the meters. Over 90% of the meters have been replaced. (Last update: October 2023).
 Staff have been working with Willdan Consulting on updating several City facilities, Parks and Recreation impact fees. Staff has met with the consultant and the Parks & Recreation Master Plan consultant during October to go over the costs associated with parks/recreational facilities. The impact fee study is complete, and staff will be presenting the item to the Council for approval of the new proposed fees in the next couple of months. (Last Update:

August 2023).
 Staff has been working closely with Planning, Recreation/Community Services, and Engineering on the new Parks Master Plan update. (Last Update: June 2023).  The Solid Waste Division completed a quarterly round of inspections totaling 40 inspections.

Education materials were provided to the business community regarding recycling laws. (Last Updated September 2023).

Grants and Special Projects
 South Park Per Capita Grant: The city had the bid opening, and the item is scheduled for the October 17th City Council agenda to award the construction contract. (Last Update:

September 2023).
 These are the main projects which Public Works and Engineering are focusing on. These projects include:
o Staff continue to work with Engineering to develop the City’s Track 1 Trash Implementation Plan to comply with the State’s Trash Policy requirements. The plan was submitted to the State in December 2018 and the City has 10 years from this date to complete the implementation of their full trash capture plan. Design funds were approved in the FY 19/20 budget. Proposals for design were received and a consultant agreement is currently in progress. The kickoff meeting was held, and the project is currently in progress. The city will be submitting their implementation plan and full trash capture device option(s) to the State. Once approved, staff will work on

6.3.a
Packet Pg. 19
Attachment: Monthly Staff Reports (Monthly Department Reports) 2 the next phases of this project which includes preliminary projects design/bid plans.

F.O.G (Fats, Oils, & Grease) Program
The city currently has two Public Works inspectors conducting FOG and stormwater inspections.

FOG inspections are being performed on a regular basis to ensure compliance. (Last Update:

April 2023).

Storm Water Pollution Prevention Program
 A new Phase II Stormwater Permit is in progress at the State level. Once it is adopted, it will be implemented. The city must comply with everything that is in the current permit. It is anticipated that the new permit will be implemented in 2024. Under this new permit, the school districts will be brought in and will be required to have their own stormwater programs. The new permit has not yet been released. (Last Update: October 2023).  The City awarded the design contract to Stantec Engineering for the design of the City’s trash capturing system. The System will consist of trash capturing devices and improvements at the Olive Avenue regional basin and Salado Creek. The kickoff meeting is scheduled for September 14, 2023. The city will be submitting a complete grant application to the State Water Resources Control Board to seek funding assistance for this project. (Last updated:

October 2023).

October 2023 Water Production
Well Production
2 0

6.3.a
Packet Pg. 20
Attachment: Monthly Staff Reports (Monthly Department Reports) 3 4- NP 669,000
5 86,274,000
6 10,000
7 4,000
8 65,527,665
9 72,002,000
11 13,754,000
Keystone-NP 4,000
Floragold-NP 15,404,500
TOTAL 253,649,165

1. Number of Follow-ups: 0

2. Number of Warning/Violations: 65

3. Number of Penalties: 19

4. Water Service Connection Requests: 67

5. Water Service Connection Turnoffs: 45

6. Water Work Orders: 33- zero usage, high usage, new meter, leak at meter and meter change.

Committees & Commission
Parks & Recreation and Beautification Commission:
 A regular meeting was held on October 18, 2023, and the agenda and minutes are on the Council’s agenda for review. The next meeting is scheduled for November 15, 2023. (Last Update: October 2023).
 Safety (JEMSAC) Committee: The committee held its monthly meeting on October 8, 2023. (Last update: October 2023).

Permits Issued
Encroachment Permits, Fire Hydrant Use Permits, Other Permits Issued by Public Works:
 Encroachment Permit = 10
 Fire Hydrant Use Permits = 1
(Last update: September 2023).

Streets/Collections Division
Work Orders: Streets/Sidewalks = 13 Alleys/Garbage = 5 Collections = 5 Seasonal Tasks:
 Storm drains maintenance.
 Repaired potholes throughout the city.

6.3.a
Packet Pg. 21
Attachment: Monthly Staff Reports (Monthly Department Reports) 4  Performed sewer maintenance.
 Performed sidewalk repairs.
(Last update: October 2023).

Electrical Division
Work Orders: Streetlights = 10
Seasonal Tasks this Month:
 Repaired streetlights throughout the city.
 Reviewed Electrical/SCADA plans for Engineering.
 Continued upgrades at the WQCF.
 Worked on Internet issues at the WQCF.
(Last Update: October 2023).

Urban Forestry Division
Work Orders: Urban Forestry: 60
Seasonal Tasks this Month:
 Performed tree maintenance.
 Addressed requests for service.
(Last update: October 2023).

Parks, Landscape & Building Maintenance Divisions
Park Reservations: All parks are currently closed to reservations and are on a first come first served basis.

Work Orders: Building Maintenance: 12 Parks: 12
Seasonal Tasks & Projects:
 Continued maintenance of all parks and easements.
 Focused on maintenance pruning in LMDs.
 Performed routine maintenance at City Hall.
(Last update: October 2023).

Fleet Services Division
Number of PW equipment repaired/serviced: Number of PW equipment repaired/serviced:
41 Public Works, Recreation and Community Service vehicles and 7 Fire vehicles. (Last update:

October 2023).

6.3.a
Packet Pg. 22
Attachment: Monthly Staff Reports (Monthly Department Reports) 5 Water Quality Control Facility (WQCF)

MONTHLY FLOWS AND AVERAGES – October 2023
AUGUST 2023 INFLUENT SPOD* NPOD* AIPS

TOTAL FLOW,
MG/ month

53.694 34.806 18.888 0.000
AVG FLOW, MGD 1.732 1.123 .609 0.000
HIGH FLOW, MGD 1.942 1.273 .672 0.000
LOW FLOW, MGD 1.626 1.039 .480 0.000
Total Capacity,
MGD

2.25 1.25 .800 .200
* SPOD- South Plant Oxidation Ditch (new)              * NPOD- North Plant Oxidation Ditch (old) Alarms/Callouts:

Alarms = 305
Callouts = 5
Seasonal Tasks:

1. AIPS back online.

1. Process control under adjustment for current weather conditions.

2. Continuing Annual PM work.

3. Washer compactor back online.

4. North plant aerator #2 fixed back online.

LABORATORY RESULTS
AUGUST 2023
Avg.

BOD5 TSS TDS pH EC NO3-N TKN TN-N Na Cal
Influent 220 360 * 7.53 * * * * * *
Effluent. 1.8 ND 1200 7.56 1790 .38 2.2 2.6 230 320
* Not required
(Last update: September 2023).

6.3.a
Packet Pg. 23
Attachment: Monthly Staff Reports (Monthly Department Reports) 1 DEPARTMENT OF PUBLIC WORKS
“Public Works – Improving Your Quality of Life”

MONTHLY STAFF REPORT
November 2023
Administration & Environmental Compliance Division
 The formal SRF loan agreement was approved and has been fully executed for the WQCF LEED Administration Building Project. The project is substantially complete with a few remaining items. A site inspection is scheduled with the State Water Board SRF division is scheduled for November 8
th (Last update: October 2023).
 The city has received SRF Loan funding for a city water meter system replacement project.

The project will replace older water meters in the city to help with water system revenue losses and improve overall utility system management. The project was awarded, and the Contractor (Flowline Inc.) has been replacing the meters. Over 90% of the meters have been replaced. (Last update: October 2023).
 Staff have been working with Willdan Consulting on updating several City facilities, Parks and Recreation impact fees. Staff has met with the consultant and the Parks & Recreation Master Plan consultant during October to go over the costs associated with parks/recreational facilities. The impact fee study is complete, and staff will be presenting the item to the Council for approval of the new proposed fees in the next couple of months. (Last Update:

August 2023).
 Staff has been working closely with Planning, Recreation/Community Services, and Engineering on the new Parks Master Plan update. (Last Update: June 2023).  Staff has been working with Finance to complete the Mid Year Budget FY 23/24.

The city will be exploring Prop 1 grant opportunities for this project. (No change).

6.3.a
Packet Pg. 24
Attachment: Monthly Staff Reports (Monthly Department Reports) 2 o WQCF Administration LEED Building. Construction is close to completion. The Contractor is working with the city to finalize all remaining items. The building is scheduled for occupancy in November. (Last update: August 2023). o Ward Avenue Sewer Lift Station Rehabilitation Project. Bids were received, all were significantly over budget. The council has rejected all bids. (Last update: June 2023). o Slurry Seal Project. The scope of the work is being determined and preliminary design is underway. (Last update: June 2023).

F.O.G (Fats, Oils, & Grease) Program
The city currently has two Public Works inspectors conducting FOG and stormwater inspections.

FOG inspections are being performed on a regular basis to ensure compliance. (Last Update:

April 2023).

Storm Water Pollution Prevention Program
 A new Phase II Stormwater Permit is in progress at the State level. Once it is adopted, it will be implemented. The city must comply with everything that is in the current permit. It is anticipated that the new permit will be implemented in 2024. Under this new permit, the school districts will be brought in and will be required to have their own stormwater programs. The new permit has not yet been released. (Last Update: October 2023).  The City awarded the design contract to Stantec Engineering for the design of the City’s trash capturing system. The System will consist of trash capturing devices and improvements at the Olive Avenue regional basin and Salado Creek. The kickoff meeting is scheduled for September 14, 2023. The city will be submitting a complete grant application to the State Water Resources Control Board to seek funding assistance for this project. (Last updated:

October 2023).

November 2023 Water Production
Well Production
2 1,000
4- NP 30,208,000
5 1,028,679,000

6.3.a
Packet Pg. 25
Attachment: Monthly Staff Reports (Monthly Department Reports) 3 6 0
7 2,327,000
8 118,780,890
9 35,900,000
11 26,000
Keystone-NP 0
Floragold-NP 6,103,600
TOTAL 1,222,025,490

1. Number of Follow-ups: 39

2. Number of Warning/Violations: 5

3. Number of Penalties: 2

4. Water Service Connection Requests: 4

5. Water Service Connection Turnoffs: 49

6. Water Work Orders: 19- zero usage, high usage, new meter, leak at meter and meter change.

Permits Issued
Encroachment Permits, Fire Hydrant Use Permits, Other Permits Issued by Public Works:
 Encroachment Permit = 12
 Fire Hydrant Use Permits = 2
(Last update: November 2023).

Streets/Collections Division
Work Orders: Streets/Sidewalks = 6 Alleys/Garbage = 2 Collections = 6 Seasonal Tasks:
 Storm drains maintenance.
 Repaired potholes throughout the city.
 Performed sewer maintenance.
 Performed sidewalk repairs.
(Last update: November 2023).

6.3.a
Packet Pg. 26
Attachment: Monthly Staff Reports (Monthly Department Reports) 4 Electrical Division
Work Orders: Streetlights = 9
Seasonal Tasks this Month:
 Repaired streetlights throughout the city.
 Reviewed Electrical/SCADA plans for Engineering.
 Continued upgrades at the WQCF.
 Worked on Internet issues at the WQCF.
(Last Update: November 2023).

Urban Forestry Division
Work Orders: Urban Forestry: 41
Seasonal Tasks this Month:
 Performed tree maintenance.
 Addressed requests for service.
(Last update: November 2023).

Parks, Landscape & Building Maintenance Divisions
Park Reservations: All parks are currently closed to reservations and are on a first come first served basis.

Work Orders: Building Maintenance: 4 Parks: 4
Seasonal Tasks & Projects:
 Continued maintenance of all parks and easements.
 Focused on maintenance pruning in LMDs.
 Performed routine maintenance at City Hall.
(Last update: November 2023).

Fleet Services Division
Number of PW equipment repaired/serviced: Number of PW equipment repaired/serviced:
43 Public Works, Recreation and Community Service vehicles and 6 Fire vehicles. (Last update:

November 2023).

6.3.a
Packet Pg. 27
Attachment: Monthly Staff Reports (Monthly Department Reports) 5 Water Quality Control Facility (WQCF)

MONTHLY FLOWS AND AVERAGES – November 2023
AUGUST 2023 INFLUENT SPOD* NPOD* AIPS

TOTAL FLOW,
MG/ month
49,176 33.528 15.644 0.000
AVG FLOW, MGD 1.639 1.118 .521 0.000
HIGH FLOW, MGD 1.788 1.265 .663 0.000
LOW FLOW, MGD .912 .672 .240 0.000
Total Capacity,
MGD

2.25 1.25 .800 .200
* SPOD- South Plant Oxidation Ditch (new)              * NPOD- North Plant Oxidation Ditch (old) Alarms/Callouts:

Alarms = 285
Callouts = 8
Seasonal Tasks:

1. AIPS back online.

1. Process control under adjustment for current weather conditions.

2. Continuing Annual PM work.

3. Washer compactor back online.

4. North plant aerator #2 fixed back online.

LABORATORY RESULTS
AUGUST 2023
Avg.

BOD5 TSS TDS pH EC NO3-N TKN TN-N Na Cal
Influent 120 340 * 7.43 * * * * * *
Effluent. 3.1 4.1 1100 7.69 1790 .14 1.5 1.5 210 300
* Not required
(Last update: November 2023).

6.3.a
Packet Pg. 28
Attachment: Monthly Staff Reports (Monthly Department Reports) 1 DEPARTMENT OF PUBLIC WORKS
“Public Works – Improving Your Quality of Life”

MONTHLY STAFF REPORT
December 2023
Administration & Environmental Compliance Division
 The formal SRF loan agreement was approved and has been fully executed for the WQCF LEED Administration Building Project. The project is substantially complete with a few remaining items. A site inspection with the State Water Board SRF division was completed on November 8
th. Staff will be closing out the project in the next couple of months. (Last update: December 2023).
 The city has received SRF Loan funding for a city water meter system replacement project.

The project will replace older water meters in the city to help with water system revenue losses and improve overall utility system management. The project was awarded, and the Contractor (Flowline Inc.) has been replacing the meters. Over 95% of the meters have been replaced. (Last update: December 2023).
 Staff have been working with Willdan Consulting on updating several City facilities, Parks and Recreation impact fees. Staff has met with the consultant and the Parks & Recreation Master Plan consultant during October to go over the costs associated with parks/recreational facilities. The impact fee study is complete, and staff will be presenting the item to the Council for approval of the new proposed fees in the next couple of months. (Last Update:

August 2023).
 The Parks Master Plan was approved by the City Council in December 2023. (Last Update:

December 2023).
 Staff have been working with Finance to complete the Mid-Year Budget FY 23/24, which will be brought to City Council for adoption in January/February 2024. (Last Update: December 2023).
 Staff will be starting the new FY 24/25 budget process. This item will be brought to the City Council in the near future for review and adoption. (Last Update: December 2023).  Staff began researching a loan program for businesses to be able to comply with regulatory requirements. The loan guidelines, process, and funding will be presented to the City Council in the near future.

Grants and Special Projects
 South Park Per Capita Grant: The city had the bid opening, and the item is scheduled for the October 17th City Council agenda to award the construction contract. (Last Update:

6.3.a
Packet Pg. 29
Attachment: Monthly Staff Reports (Monthly Department Reports) 2 was submitted to the State in December 2018 and the City has 10 years from this date to complete the implementation of their full trash capture plan. Design funds were approved in the FY 19/20 budget. Proposals for design were received and a consultant agreement is currently in progress. The kickoff meeting was held, and the project is currently in progress. The city will be submitting their implementation plan and full trash capture device option(s) to the State. Once approved, staff will work on the next phases of this project which includes preliminary projects design/bid plans.

F.O.G (Fats, Oils, & Grease) Program
The city continues to conduct FOG inspections on a regular basis to ensure compliance.

Businesses that generate fats, oils, and grease are required to have grease interceptors/trap and perform on-going maintenance. The program continues to grow with additional businesses opening up. (Last Update: December 2023).

Storm Water Pollution Prevention Program
 A new Phase II Stormwater Permit is in progress at the State level. Once it is adopted, it will be implemented. The city must comply with everything that is in the current permit. It is anticipated that the new permit will be implemented in 2024. Under this new permit, the school districts will be brought in and will be required to have their own stormwater programs. The new permit has not yet been released. (Last Update: October 2023).  The City awarded the design contract to Stantec Engineering for the design of the City’s trash capturing system. The System will consist of trash capturing devices and improvements at the Olive Avenue regional basin and Salado Creek. The kickoff meeting is scheduled for September 14, 2023. The city will be submitting a complete grant application to the State Water Resources Control Board to seek funding assistance for this project. (Last updated:

October 2023).

6.3.a
Packet Pg. 30
Attachment: Monthly Staff Reports (Monthly Department Reports) 3 December 2023 Water Production
Well Production
2 0
4- NP 30,072,000
5 24,533,000
6 0
7 10,000
8 118,780,890
9 35,900,000
11 26,000
Keystone-NP 0
Floragold-NP 6,103,600
TOTAL 135,834,287

1. Number of Follow-ups: 9

2. Number of Warning/Violations: 2

3. Number of Penalties: 0

4. Water Service Connection Requests: 9

5. Water Service Connection Turnoffs: 25

6. Water Work Orders: 7- zero usage, high usage, new meter, leak at meter and meter change.

Permits Issued
Encroachment Permits, Fire Hydrant Use Permits, Other Permits Issued by Public Works:
 Encroachment Permit = 5
 Fire Hydrant Use Permits = 0
(Last update: January 2024).

6.3.a
Packet Pg. 31
Attachment: Monthly Staff Reports (Monthly Department Reports) 4 Streets/Collections Division
Work Orders: Streets/Sidewalks = 6 Alleys/Garbage = 2 Collections = Seasonal Tasks:
 Storm drains maintenance.
 Repaired potholes throughout the city.
 Performed sewer maintenance.
 Performed sidewalk repairs.
(Last update: November 2023).

Electrical Division
Work Orders: Streetlights = 8
Seasonal Tasks this Month:
 Repaired streetlights throughout the city.
 Reviewed Electrical/SCADA plans for Engineering.
 Continued upgrades at the WQCF.
 Worked on Internet issues at the WQCF.
(Last Update: January 2024).

Urban Forestry Division
Work Orders: Urban Forestry: 14
Seasonal Tasks this Month:
 Performed tree maintenance.
 Addressed requests for service.
(Last update: January 2024).

Parks, Landscape & Building Maintenance Divisions
Park Reservations: All parks are currently closed to reservations and are on a first come first served basis.

Work Orders: Building Maintenance: 17 Parks: 6
Seasonal Tasks & Projects:
 Continued maintenance of all parks and easements.
 Focused on maintenance pruning in LMDs.
 Performed routine maintenance at City Hall.
(Last update: January 2024).

Fleet Services Division
Number of PW equipment repaired/serviced: Number of PW equipment repaired/serviced:
40 Public Works, Recreation and Community Service vehicles and 1 Fire vehicles. (Last update:

January 2024).

6.3.a
Packet Pg. 32
Attachment: Monthly Staff Reports (Monthly Department Reports) 5 Water Quality Control Facility (WQCF)

MONTHLY FLOWS AND AVERAGES – December 2023
AUGUST 2023 INFLUENT SPOD* NPOD* AIPS

TOTAL FLOW,
MG/ month

50.826 34.639 15.921 .266
AVG FLOW, MGD 1.640 1.117 .514 .009
HIGH FLOW, MGD 1.891 1.225 .678 .216
LOW FLOW, MGD 1.542 .997 .418 0.000
Total Capacity,
MGD

2.25 1.25 .800 .200
* SPOD- South Plant Oxidation Ditch (new) * NPOD- North Plant Oxidation Ditch (old) Alarms/Callouts:

Alarms = 285
Callouts = 8
Seasonal Tasks:

1. AIPS back online.

1. Process control under adjustment for current weather conditions.

2. Continuing Annual PM work.

3. Washer compactor back online.

4. North plant aerator #2 fixed back online.

LABORATORY RESULTS
AUGUST 2023
Avg.

BOD5 TSS TDS pH EC NO3-N TKN TN-N Na Cal
Influent 200 200 * 7.21 * * * * * *
Effluent. 5.6 9.8 1100 7.61 1820 .21 2 2.2 250 300
* Not required
(Last update: January 2024).

6.3.a
Packet Pg. 33
Attachment: Monthly Staff Reports (Monthly Department Reports) Incident Type Count Report
Date Range: From 9/1/2023 To 9/30/2023
Selected Station(s): All
Incident
Type Description Count
Station: 50
322 - Vehicle accident with injuries 1 0.68%
Total - Rescue & Emergency Medical Service Incidents 1 100.00% Total for Station 1 0.68%
Station: 51
111 - Building fire 2 1.37%
113 - Cooking fire, confined to container 1 0.68%
Total - Fires 3 2.94%
3 - Rescue & Emergency Medical Service Incidents 10 6.85% 311 - Medical assist, assist EMS crew 42 28.77%
32 - Emergency medical service (EMS) 1 0.68%
321 - EMS call, excluding vehicle accident with injury 21 14.38% 3210 - Ems cancelled upon arrival 2 1.37%
324 - Motor vehicle accident with no injuries 1 0.68%
Total - Rescue & Emergency Medical Service Incidents 77 75.49% 4 - Hazardous Conditions (No fire) 1 0.68%
412 - Gas leak (natural gas or LPG) 2 1.37%
Total - Hazardous Conditions (No fire) 3 2.94%
500 - Service Call, other 1 0.68%
510 - Person in distress, other 5 3.42%
550 - Public service assistance, other 1 0.68%
Total - Service Call 7 6.86%
611 - Dispatched & cancelled en route 3 2.05%
611E - EMS: Dispatched & cancelled en route 3 2.05%
Total - Good Intent Call 6 5.88%
730 - System malfunction, other 1 0.68%
735 - Alarm system sounded due to malfunction 1 0.68%
740 - Unintentional transmission of alarm, other 1 0.68% 743 - Smoke detector activation, no fire - unintentional 1 0.68% 745 - Alarm system sounded, no fire - unintentional 1 0.68% Total - Fals Alarm & False Call 5 4.90%
Incident Type is blanks 1 0.68%
Total - incident type left blank 1 0.98%
Total for Station 102 69.86%
Station: 52
3 - Rescue & Emergency Medical Service Incidents 1 0.68% 311 - Medical assist, assist EMS crew 5 3.42%
321 - EMS call, excluding vehicle accident with injury 16 10.96% Total - Rescue & Emergency Medical Service Incidents 22 61.11% 412 - Gas leak (natural gas or LPG) 2 1.37%

Page 1 of 2 ends

Patterson Fire Department

6.3.a
Packet Pg. 34
Attachment: Monthly Staff Reports (Monthly Department Reports) Incident
Type Description Count
Station; 52 - (Continued)
424 - Carbon monoxide incident 1 0.68%
Total - Hazardous Conditions (No fire) 3 8.33%
500 - Service Call, other 1 0.68%
510 - Person in distress, other 1 0.68%
511 - Lock-out 3 2.05%
522 - Water or steam leak 1 0.68%
Total - Service Call 6 16.67%
611E - EMS: Dispatched & cancelled en route 1 0.68%
Total - Good Intent Call 1 2.78%
700 - False alarm or false call, other 2 1.37%
743 - Smoke detector activation, no fire - unintentional 1 0.68% Total - Fals Alarm & False Call 3 8.33%
814 - Lightning strike (no fire) 1 0.68%
Total - Severe Weather & Natural Disaster 1 2.78%
Total for Station 36 24.66%
Station: 53
611E - EMS: Dispatched & cancelled en route 2 1.37%
Total - Good Intent Call 2 66.67%
710 - Malicious, mischievous false call, other 1 0.68%
Total - Fals Alarm & False Call 1 33.33%
Total for Station 3 2.05%
Station: 54
140 - Natural vegetation fire, other 1 0.68%
Total - Fires 1 50.00%
611 - Dispatched & cancelled en route 1 0.68%
Total - Good Intent Call 1 50.00%
Total for Station 2 1.37%
Station: 57
321 - EMS call, excluding vehicle accident with injury 1 0.68% Total - Rescue & Emergency Medical Service Incidents 1 50.00% 611 - Dispatched & cancelled en route 1 0.68%
Total - Good Intent Call 1 50.00%
Total for Station 2 1.37%
146 100.00%

Page 2 of 2 ends

6.3.a
Packet Pg. 35
Attachment: Monthly Staff Reports (Monthly Department Reports) Row Labels Sum of Duration (hours)
01 - Fire Service & Firefighter Safety 1
05 - FF Personal Protective Equipment 1
07 - Ropes & Knots 6
08 - Ground Ladders 1
09 - Forcible Entry 1
21 - Maintenance & Testing Responsibilities 1
Anhydrous Ammonia Awareness 0.25
EMS Advanced Cervical Spinal Injuries: Special Considerations for Athletics 1 EMS Airway Management Advanced (2 hours) 2
EMS Airway Management Basic 1
EMS Amputation Injuries 1
EMS Assessment and Treatment of Submersion Injuries (Advanced) 1 EMS Back Injury Prevention 1
EMS Cardiac Emergencies Advanced 1
EMS Detailed Physical Exam 1
EMS Fetal Trauma from Motor Vehicle Collisions (ALS) 1
EMS Musculoskeletal Injuries Advanced 1
Facilities Training Documentation 123
Fire Prevention and Public Education 1
Firefighter Fitness, NFPA 1500 4.95
NFPA 1001 Fire Behavior 0.5
NFPA 1001 Fire Hose 1
NFPA 1001 Fire Streams 1
NFPA 1001 Ground Ladders 1
NFPA 1021 Fire and Life Safety Inspections 1
NFPA 1021 Fire Department Communications 1
NFPA 1500 Advanced HAZWOPER Awareness (MOD #1) 2
NFPA 1500 Advanced HAZWOPER Awareness (MOD #2) 2
NFPA 3000: Standard for Preparedness and Response to Active Shooter and/or Hostile Events 1.5 Grand Total 162.2
Patterson Fire Department
Training Report
September, 2023

6.3.a
Packet Pg. 36
Attachment: Monthly Staff Reports (Monthly Department Reports) Incident Type Count Report
Date Range: From 9/1/2023 To 9/30/2023
Selected Station(s): All
Incident
Type Description Count
Station: 50
322 - Vehicle accident with injuries 1 0.68%
Total - Rescue & Emergency Medical Service Incidents 1 100.00% Total for Station 1 0.68%
Station: 51
111 - Building fire 2 1.37%
113 - Cooking fire, confined to container 1 0.68%
Total - Fires 3 2.94%
3 - Rescue & Emergency Medical Service Incidents 10 6.85% 311 - Medical assist, assist EMS crew 42 28.77%
32 - Emergency medical service (EMS) 1 0.68%
321 - EMS call, excluding vehicle accident with injury 21 14.38% 3210 - Ems cancelled upon arrival 2 1.37%
324 - Motor vehicle accident with no injuries 1 0.68%
Total - Rescue & Emergency Medical Service Incidents 77 75.49% 4 - Hazardous Conditions (No fire) 1 0.68%
412 - Gas leak (natural gas or LPG) 2 1.37%
Total - Hazardous Conditions (No fire) 3 2.94%
500 - Service Call, other 1 0.68%
510 - Person in distress, other 5 3.42%
550 - Public service assistance, other 1 0.68%
Total - Service Call 7 6.86%
611 - Dispatched & cancelled en route 3 2.05%
611E - EMS: Dispatched & cancelled en route 3 2.05%
Total - Good Intent Call 6 5.88%
730 - System malfunction, other 1 0.68%
735 - Alarm system sounded due to malfunction 1 0.68%
740 - Unintentional transmission of alarm, other 1 0.68% 743 - Smoke detector activation, no fire - unintentional 1 0.68% 745 - Alarm system sounded, no fire - unintentional 1 0.68% Total - Fals Alarm & False Call 5 4.90%
Incident Type is blanks 1 0.68%
Total - incident type left blank 1 0.98%
Total for Station 102 69.86%
Station: 52
3 - Rescue & Emergency Medical Service Incidents 1 0.68% 311 - Medical assist, assist EMS crew 5 3.42%
321 - EMS call, excluding vehicle accident with injury 16 10.96% Total - Rescue & Emergency Medical Service Incidents 22 61.11% 412 - Gas leak (natural gas or LPG) 2 1.37%

Page 1 of 2 ends

Patterson Fire Department

6.3.a
Packet Pg. 37
Attachment: Monthly Staff Reports (Monthly Department Reports) Incident
Type Description Count
Station; 52 - (Continued)
424 - Carbon monoxide incident 1 0.68%
Total - Hazardous Conditions (No fire) 3 8.33%
500 - Service Call, other 1 0.68%
510 - Person in distress, other 1 0.68%
511 - Lock-out 3 2.05%
522 - Water or steam leak 1 0.68%
Total - Service Call 6 16.67%
611E - EMS: Dispatched & cancelled en route 1 0.68%
Total - Good Intent Call 1 2.78%
700 - False alarm or false call, other 2 1.37%
743 - Smoke detector activation, no fire - unintentional 1 0.68% Total - Fals Alarm & False Call 3 8.33%
814 - Lightning strike (no fire) 1 0.68%
Total - Severe Weather & Natural Disaster 1 2.78%
Total for Station 36 24.66%
Station: 53
611E - EMS: Dispatched & cancelled en route 2 1.37%
Total - Good Intent Call 2 66.67%
710 - Malicious, mischievous false call, other 1 0.68%
Total - Fals Alarm & False Call 1 33.33%
Total for Station 3 2.05%
Station: 54
140 - Natural vegetation fire, other 1 0.68%
Total - Fires 1 50.00%
611 - Dispatched & cancelled en route 1 0.68%
Total - Good Intent Call 1 50.00%
Total for Station 2 1.37%
Station: 57
321 - EMS call, excluding vehicle accident with injury 1 0.68% Total - Rescue & Emergency Medical Service Incidents 1 50.00% 611 - Dispatched & cancelled en route 1 0.68%
Total - Good Intent Call 1 50.00%
Total for Station 2 1.37%
146 100.00%

Page 2 of 2 ends

6.3.a
Packet Pg. 38
Attachment: Monthly Staff Reports (Monthly Department Reports) Fire Department Activity Report: December 2023
• Activities
o Fire personnel logged 192.02 hours of Training.
o Fire Safety Business Inspections Completed by Fire Crews: 23 o Fire Prevention Division:
▪ 32 Construction Inspections
▪ 7 New Business Licenses
▪ 6 Development reviews.
o Emergency Incidents: 180
o Notable Incidents: Vacant Structure Fires
▪ 801 W. Las Palmas. 12/18/23- 5:54 a.m.“fully involved” vacant house ▪ 830 W. Las Palmas. 12/28/23- 6:33 a.m.“fully involved” vacant house Incident Type Count Report:

Incident
Type Description Count
Station: 51
111 - Building fire 4 2.22%
113 - Cooking fire, confined to container 1 0.56%
118 - Trash or rubbish fire, contained 2 1.11%
131 - Passenger vehicle fire 2 1.11%
150 - Outside rubbish fire, other 1 0.56%
Total - Fires 10 7.46%
3 - Rescue & Emergency Medical Service Incidents 3 1.67% 311 - Medical assist, assist EMS crew 15 8.33%
321 - EMS call, excluding vehicle accident with injury 62 34.44% 3210 - Ems cancelled upon arrival 1 0.56%
322 - Vehicle accident with injuries 4 2.22%
323 - Motor vehicle/pedestrian accident (MV Ped) 1 0.56% 324 - Motor vehicle accident with no injuries 1 0.56%
Total - Rescue & Emergency Medical Service Incidents 87 64.93% 410 - Flammable gas or liquid condition, other 1 0.56%
412 - Gas leak (natural gas or LPG) 2 1.11%
413 - Oil or other combustible liquid spill 1 0.56%
463 - Vehicle accident, general cleanup 1 0.56%
Total - Hazardous Conditions (No fire) 5 3.73%
510 - Person in distress, other 5 2.78%
512 - Ring or jewelry removal 1 0.56%
551 - Assist police or other governmental agency 6 3.33% Total - Service Call 12 8.96%
611 - Dispatched & cancelled en route 5 2.78%
611E - EMS: Dispatched & cancelled en route 3 1.67%
City of Patterson
Fire Department

6.3.a
Packet Pg. 39
Attachment: Monthly Staff Reports (Monthly Department Reports) 651 - Smoke scare, odor of smoke 1 0.56%
Total - Good Intent Call 9 6.72%
7 - False Alarm & False Call 3 1.67%
700 - False alarm or false call, other 1 0.56%
735 - Alarm system sounded due to malfunction 1 0.56%
740 - Unintentional transmission of alarm, other 2 1.11% 741 - Sprinkler activation, no fire - unintentional 1 0.56% 743 - Smoke detector activation, no fire - unintentional 1 0.56% Total - Fals Alarm & False Call 9 6.72%
900 - Special type of incident, other 1 0.56%
911 - Citizen complaint 1 0.56%
Total - Special Incident Type 2 1.49%
Total for Station 134 74.44%
Station: 52
114 - Chimney or flue fire, confined to chimney or flue 1 0.56% 311 - Medical assist, assist EMS crew 5 2.78%
321 - EMS call, excluding vehicle accident with injury 24 13.33% 3210 - Ems cancelled upon arrival 1 0.56%
Total - Rescue & Emergency Medical Service
Incidents
30 65.22%
510 - Person in distress, other 2 1.11%
511 - Lock-out 1 0.56%
531 - Smoke or odor removal 1 0.56%
551 - Assist police or other governmental agency 1 0.56% 553 - Public service 2 1.11%
Total - Service Call 7 15.22%
611 - Dispatched & cancelled en route 5 2.78%
611E - EMS: Dispatched & cancelled en route 1 0.56%
Total - Good Intent Call 6 13.04%
740 - Unintentional transmission of alarm, other 1 0.56% 743 - Smoke detector activation, no fire - unintentional 1 0.56% Total - Fals Alarm & False Call 2 4.35%
Total for Station 46 25.56%
180 100.00%
▪ Personnel Changes
o Frank Compton was hired for the vacant Firefighter position. o Captain David Hohl retired after 17 years of career service. A retirement Ceremony for him was held at Fire Station 52 on December 14th. ▪ Events
o Volunteer and Career Fire personnel participated in the Holiday Parade. o The Chamber of Commerce utilized Station 51 for the Annual Holiday Boutique. o The City Employee Holiday Luncheon was held at fire Station 52 on 12/7. o Operation Santa: Volunteer & career fire personnel, as well as Santa Claus, paraded through neighborhoods and collected and distributed toys for over 300 local children.

6.3.a
Packet Pg. 40
Attachment: Monthly Staff Reports (Monthly Department Reports) September 2023
Community Development Department
Monthly Report
The following information is provided as an update regarding the Planning and Housing Division activities during the month of September and updates for previously approved projects.

Planning Commission Meetings
On September 14, 2023, the Planning Commission met to consider the following items:

1. AT&T Wireless Tower – Conditional Use Permit #23-01, Community Center, Negative Declaration #23-01
Consideration of a Conditional use permit for an unmanned wireless tower facility (cell tower) located on the north side of West Las Palmas Avenue, approximately 125 feet east of the intersection with Kestrel Drive and to consider adopting a negative declaration for the construction and operation of an unmanned wireless facility, consisting of an 84.9’ tall decorative bell tower, an 8’x8’ pre-cast concrete shelter, and a 30 KW generator, enclosed by a solid wall. The project site is located in the Public/Quasi-Public zone. Due to online audio issues, the Commission took no action on this item and continued the public hearing to the September 28, 2023 meeting.

On September 28, 2023, the Planning Commission met to consider the following items:

2. AT&T Wireless Tower – Conditional Use Permit #23-01, Community Center, Negative Declaration #23-01 (continued)
Consideration of a Conditional use permit for an unmanned wireless tower facility (cell tower) located on the north side of West Las Palmas Avenue, approximately 125 feet east of the intersection with Kestrel Drive and to consider adopting a negative declaration for the construction and operation of an unmanned wireless facility, consisting of an 84.9’ tall decorative bell tower, an 8’x8’ pre-cast concrete shelter, and a 30 KW generator, enclosed by a solid wall. The project site is located in the Public/Quasi-Public zone. The Planning Commission approved this item with a 3-2 vote.

The next regularly scheduled meetings will be held on October 12th and 26th at 7:00 PM.

Master Plan Update
The Transportation Master Plan will be presented to the City Council on October 17th.

The Parks and Recreation Master Plan will be presented to the City Council on November 7th.

6.3.a
Packet Pg. 41
Attachment: Monthly Staff Reports (Monthly Department Reports) Status update for major projects approved during 2023
Architectural & Site Plan Reviews
- Sperry Avenue Self Storage - A&SP #22-08, 425 Sperry Avenue – Approved - Oak Harbor Freight – A&SP #22-09, Conditional Use Permit #23-02, S. Rogers Rd. - Submitted building permit application
Lot Line Adjustments
- Eagle Valley Investments, LLA #22-03, S. 1st Street – Approved Tentative Parcel Maps
- Keystone Pacific, TPM #22-03, Keystone Pacific Parkway - Approved A&SP Architectural & Site Plan Review TPM Tentative Parcel Maps CUP Conditional Use Permit TSM Vesting Tentative Maps
LLA Lot Line Adjustment P/A Prezone/Annexation
PD Planned Development ORD Zoning Ordinances/Amendments RZN General Plan Amendment/Rezone VAR Variance
Status update for projects approved in previous years
• Chipotle Restaurant, A&SP #21-10, Sperry Avenue, east of Ward – Complete • Water Office Restaurant – A&SP #22-01, 22 N. Del Puerto Ave. – Construction underway • Southern Tire Mart, A&SP #21-09, CUP #21-10, 2275 Sperry Ave. – Submitted building permit application
• Sun Valley Industries #2, A&SP #22-02, S. Rogers Road – Approved

6.3.a
Packet Pg. 42
Attachment: Monthly Staff Reports (Monthly Department Reports) • Apricot Vet Clinic, A&SP #22-03, CUP #22-04, S. Rogers Road – Applied for building permit
• VOP Townhouses, A&SP #22-05, N. 1st St. & English Birch Ave. – Approved • Scott Davis Used Car Sales, CUP #22-06, 317 S. 2nd Street – Approved • Poppy Mini-Storage – CUP #22-07, A&SP #22-06 - Approved • Grocery Outlet, A&SP #21-01, CUP #21-02, TPM #21-01, southeast corner of Sperry Avenue and the future extension of Rogers Road – Open for business • Dutch Bros. Coffee, A&SP #21-02, CUP #21-03, southeast corner of Sperry Avenue and future extension of Rogers Road, nearing completion
• VOP 2.1 LLC Lot 36 housing development, north of Olive Avenue, east of Sycamore, approved
• Popeye’s Restaurant, A&SP #21-07, CUP #21-07, north of Sperry Avenue, east of Park Center Drive, submitted building permit application
• Oishi Teri Sushi Restaurant, A&SP #21-08, CUP #21-08, north of Sperry Avenue, east of Park Center Drive, submitted building permit application • Love’s Travel Center, A&SP #19-07, CUP #19-07, Sperry Avenue and Rogers Road – Open for business
• S2A Modular, A&SP #20-01, CUP #20-04, TPM #20-01 – Site work underway • Nucleus Homeopathics, Inc., A&SP #20-02, CUP #20-05, 240 Park Center Drive – Submitted building permit application
• Arambel Business Park Warehouse, A&SP #19-02, Rogers Road – Submitted building plans • La Quinta Hotel, A&SP #19-04, CUP #19-04, Sperry Avenue – Submitted building plans, applicant delay
• Harvest Samoan Assembly of God Church, A&SP #19-05, CUP #19-05, 415 N. 1st St. – Site work underway
• Del Lago Mini Golf and Family Fun Center, CUP #17-05, A&SP #17-04, Annamarie Ave – Approved
• Hamen Truck Wash, A&SP #17-01, CUP #17-02, PD #17-01, east side of Park Center Drive, north of Flying J Travel Center – Nearing completion
• Del Puerto Hospital Project, A&SP #17-03, 821 E Street - Approved • Westside Self Storage Baldwin - A&SP #16-03, PD #16-02, TPM #16-03, DA #16-01, Baldwin Road, Submitted building permit for third phase
• Patterson Logistics Center – PD 09-02, VTPM 09-01, DA 09-01, ND 10-03, A&SP 12-05 – Approved
• McShane Companies A&SP 07-04 (Phase 3) – Approved
Major Subdivisions
Villages of Patterson
• Villages of Patterson Apartments, A&SP #18-02, Olive Avenue – Submitted building permit • Landon Lane Apartments, A&SP #19-03 – Approved
• Self Help Enterprises single family units – second phase under construction • Patterson Ranch – nearing completion
• Clayton Shire – construction underway
• Camden Shire – construction underway
• Triplexes – construction underway

6.3.a
Packet Pg. 43
Attachment: Monthly Staff Reports (Monthly Department Reports) Housing Projects and Programs
• CDBG: Preliminary work on 5th Street Infrastructure project underway. • HOME: City Staff continues to work with First-time Homebuyer Applicants seeking loan approvals.

6.3.a
Packet Pg. 44
Attachment: Monthly Staff Reports (Monthly Department Reports) October 2023
Community Development Department
Monthly Report
The following information is provided as an update regarding the Planning and Housing Division activities during the month of October and updates for previously approved projects.

Planning Commission Meetings
On October 12, 2023, the Planning Commission met to consider the following items:

1. Grandpa Motor Cars – Conditional Use Permit #23-06
Consideration of a Conditional use permit to allow a used car sales dealership at 216 I Street, Ste. C. The applicant proposes to keep two for-sale vehicles on site, with potential for additional for-sale vehicles located within the building. The project is exempt from review under the California Environmental Quality Act according to §15303(c) and §15332. The Planning Commission approved this item with a 5-0 vote.

On October 26, 2023, the Planning Commission met to consider the following items:

2. Vesting Tentative Subdivision Map #23-02 – Villages of Patterson Sycamore Ranch II A public hearing to consider a vesting tentative subdivision map encompassing approximately 46.23 acres of land, roughly bounded by Olive Avenue to the south, the future Wimbley Parkway to the west, future English Oak Avenue to the north and Sycamore Avenue to the east. The map would result in 247 lots proposed for development of singlefamily housing, along with streets and other infrastructure facilities. The project site is located within the Medium-Density Residential Zone and Low-Density Residential Zone and is subject to the Villages of Patterson Master Development Plan. The project was previously reviewed in the Villages of Patterson Environmental Impact Report (SCH No. 2006032043) The Planning Commission recommended approval of this item to the City Council with a 4-0 vote.

The next regularly scheduled meeting will be held on November 16th at 7:00 PM.

Master Plan Update
The Transportation Master Plan was approved by the City Council on October 17th.

The Parks and Recreation Master Plan will be presented to the City Council on November 7th.

6.3.a
Packet Pg. 45
Attachment: Monthly Staff Reports (Monthly Department Reports) Status update for major projects approved during 2023
Architectural & Site Plan Reviews
- Sperry Avenue Self Storage - A&SP #22-08, 425 Sperry Avenue – Approved - Oak Harbor Freight – A&SP #22-09, Conditional Use Permit #23-02, S. Rogers Rd. - Submitted building permit application
Conditional Use Permits
- AT&T Wireless Tower – CUP #23-01, Community Center – Approved Lot Line Adjustments
- Eagle Valley Investments, LLA #22-03, S. 1st Street – Approved Tentative Parcel Maps
- Keystone Pacific, TPM #22-03, Keystone Pacific Parkway – Approved A&SP Architectural & Site Plan Review TPM Tentative Parcel Maps CUP Conditional Use Permit TSM Vesting Tentative Maps
LLA Lot Line Adjustment P/A Prezone/Annexation
PD Planned Development ORD Zoning Ordinances/Amendments RZN General Plan Amendment/Rezone VAR Variance
Status update for projects approved in previous years
• Chipotle Restaurant, A&SP #21-10, Sperry Avenue, east of Ward – Complete • Water Office Restaurant – A&SP #22-01, 22 N. Del Puerto Ave. – Construction underway • Southern Tire Mart, A&SP #21-09, CUP #21-10, 2275 Sperry Ave. – Submitted building permit application
• Sun Valley Industries #2, A&SP #22-02, S. Rogers Road – Approved

6.3.a
Packet Pg. 46
Attachment: Monthly Staff Reports (Monthly Department Reports) • Apricot Vet Clinic, A&SP #22-03, CUP #22-04, S. Rogers Road – Applied for building permit
• VOP Townhouses, A&SP #22-05, N. 1st St. & English Birch Ave. – Approved • Scott Davis Used Car Sales, CUP #22-06, 317 S. 2nd Street – Approved • Poppy Mini-Storage – CUP #22-07, A&SP #22-06 - Approved • Grocery Outlet, A&SP #21-01, CUP #21-02, TPM #21-01, southeast corner of Sperry Avenue and the future extension of Rogers Road – Open for business • Dutch Bros. Coffee, A&SP #21-02, CUP #21-03, southeast corner of Sperry Avenue and future extension of Rogers Road
• VOP 2.1 LLC Lot 36 housing development, north of Olive Avenue, east of Sycamore, approved
• Popeye’s Restaurant, A&SP #21-07, CUP #21-07, north of Sperry Avenue, east of Park Center Drive, submitted building permit application
• Oishi Teri Sushi Restaurant, A&SP #21-08, CUP #21-08, north of Sperry Avenue, east of Park Center Drive, applicant delay
• Love’s Travel Center, A&SP #19-07, CUP #19-07, Sperry Avenue and Rogers Road – Open for business
• S2A Modular, A&SP #20-01, CUP #20-04, TPM #20-01 – Site work underway • Nucleus Homeopathics, Inc., A&SP #20-02, CUP #20-05, 240 Park Center Drive – Submitted building permit application
• Arambel Business Park Warehouse, A&SP #19-02, Rogers Road – Submitted building plans • La Quinta Hotel, A&SP #19-04, CUP #19-04, Sperry Avenue – Submitted building plans, applicant delay
• Harvest Samoan Assembly of God Church, A&SP #19-05, CUP #19-05, 415 N. 1st St. – Site work underway
• Del Lago Mini Golf and Family Fun Center, CUP #17-05, A&SP #17-04, Annamarie Ave – Approved
• Hamen Truck Wash, A&SP #17-01, CUP #17-02, PD #17-01, east side of Park Center Drive, north of Flying J Travel Center – Nearing completion
• Del Puerto Hospital Project, A&SP #17-03, 821 E Street - Approved • Westside Self Storage Baldwin - A&SP #16-03, PD #16-02, TPM #16-03, DA #16-01, Baldwin Road, Submitted building permit for third phase
• Patterson Logistics Center – PD 09-02, VTPM 09-01, DA 09-01, ND 10-03, A&SP 12-05 – Approved
• McShane Companies A&SP 07-04 (Phase 3) – Approved
Major Subdivisions
Villages of Patterson
• Villages of Patterson Apartments, A&SP #18-02, Olive Avenue – Submitted building permit • Landon Lane Apartments, A&SP #19-03 – Approved
• Self Help Enterprises single family units – second phase under construction • Patterson Ranch – nearing completion
• Clayton Shire – construction underway
• Camden Shire – construction underway
• Triplexes – construction underway
Baldwin Ranch North – Backbone infrastructure nearing completion, building submitting initial design information.

6.3.a
Packet Pg. 47
Attachment: Monthly Staff Reports (Monthly Department Reports) Housing Projects and Programs
• CDBG: Preliminary work on 5th Street Infrastructure project underway. • HOME: City Staff continues to work with First-time Homebuyer Applicants seeking loan approvals.

6.3.a
Packet Pg. 48
Attachment: Monthly Staff Reports (Monthly Department Reports) November 2023
Community Development Department
Monthly Report
The following information is provided as an update regarding the Planning and Housing Division activities during the month of November and updates for previously approved projects.

Planning Commission Meetings
On November 16, 2023, the Planning Commission met to consider the following items:

1. Grainger/Plug In Power Project – Architectural & Site Plan Review #23-03, Conditional Use Permit #23-07
Consideration of a new liquid hydrogen tank and related equipment, piping, and interior fuel dispensers for fueling forklifts, located at the Grainger distribution center, 2710 Keystone Pacific Parkway. The tank would be located near the northeast corner of the lot, approximately 200 feet from both Keystone Pacific Parkway and Haggerty Drive. The Planning Commission approved this item with a 4-0 vote.

The next regularly scheduled meeting will be held on December 21st at 7:00 PM.

Master Plan Update
The Transportation Master Plan was approved by the City Council on October 17th.

Discussion of the Parks and Recreation Master Plan was continued to the December 5th City Council meeting.

Status update for major projects approved during 2023
Architectural & Site Plan Reviews
- Sperry Avenue Self Storage - A&SP #22-08, 425 Sperry Avenue – Approved - Oak Harbor Freight – A&SP #22-09, Conditional Use Permit #23-02, S. Rogers Rd. - Submitted building permit application
Conditional Use Permits
- AT&T Wireless Tower – CUP #23-01, Community Center – Approved - Grandpa Motor Cars – CUP #23-06, 216 I Street - Approved Lot Line Adjustments
- Eagle Valley Investments, LLA #22-03, S. 1st Street – Approved

6.3.a
Packet Pg. 49
Attachment: Monthly Staff Reports (Monthly Department Reports) Tentative Parcel Maps
- Keystone Pacific, TPM #22-03, Keystone Pacific Parkway – Approved Tentative Subdivision Maps
- Villages of Patterson – Sycamore Ranch II - TSM #23-02 – Recommended approval to City Council
A&SP Architectural & Site Plan Review TPM Tentative Parcel Maps CUP Conditional Use Permit TSM Vesting Tentative Maps
LLA Lot Line Adjustment P/A Prezone/Annexation
PD Planned Development ORD Zoning Ordinances/Amendments RZN General Plan Amendment/Rezone VAR Variance
Status update for projects approved in previous years
• Chipotle Restaurant, A&SP #21-10, Sperry Avenue, east of Ward – Complete • Water Office Restaurant – A&SP #22-01, 22 N. Del Puerto Ave. – Construction underway • Southern Tire Mart, A&SP #21-09, CUP #21-10, 2275 Sperry Ave. – Submitted building permit application
• Sun Valley Industries #2, A&SP #22-02, S. Rogers Road – Approved • Apricot Vet Clinic, A&SP #22-03, CUP #22-04, S. Rogers Road – Applied for building permit
• VOP Townhouses, A&SP #22-05, N. 1st St. & English Birch Ave. – Approved • Scott Davis Used Car Sales, CUP #22-06, 317 S. 2nd Street – Approved • Poppy Mini-Storage – CUP #22-07, A&SP #22-06 - Approved • Grocery Outlet, A&SP #21-01, CUP #21-02, TPM #21-01, southeast corner of Sperry Avenue and the future extension of Rogers Road – Open for business

6.3.a
Packet Pg. 50
Attachment: Monthly Staff Reports (Monthly Department Reports) • Dutch Bros. Coffee, A&SP #21-02, CUP #21-03, southeast corner of Sperry Avenue and future extension of Rogers Road
• VOP 2.1 LLC Lot 36 housing development, north of Olive Avenue, east of Sycamore, approved
• Popeye’s Restaurant, A&SP #21-07, CUP #21-07, north of Sperry Avenue, east of Park Center Drive, submitted building permit application
• Oishi Teri Sushi Restaurant, A&SP #21-08, CUP #21-08, north of Sperry Avenue, east of Park Center Drive, applicant delay
• Love’s Travel Center, A&SP #19-07, CUP #19-07, Sperry Avenue and Rogers Road – Open for business
• S2A Modular, A&SP #20-01, CUP #20-04, TPM #20-01 – Site work underway • Nucleus Homeopathics, Inc., A&SP #20-02, CUP #20-05, 240 Park Center Drive – Submitted building permit application
• Arambel Business Park Warehouse, A&SP #19-02, Rogers Road – Submitted building plans • La Quinta Hotel, A&SP #19-04, CUP #19-04, Sperry Avenue – Applicant delay • Harvest Samoan Assembly of God Church, A&SP #19-05, CUP #19-05, 415 N. 1st St. – Site work underway
• Del Lago Mini Golf and Family Fun Center, CUP #17-05, A&SP #17-04, Annamarie Ave – Approved
• Hamen Truck Wash, A&SP #17-01, CUP #17-02, PD #17-01, east side of Park Center Drive, north of Flying J Travel Center – Nearing completion
• Del Puerto Hospital Project, A&SP #17-03, 821 E Street - Approved • Westside Self Storage Baldwin - A&SP #16-03, PD #16-02, TPM #16-03, DA #16-01, Baldwin Road, Submitted building permit for third phase
• Patterson Logistics Center – PD 09-02, VTPM 09-01, DA 09-01, ND 10-03, A&SP 12-05 – Approved
• McShane Companies A&SP 07-04 (Phase 3) – Approved
Major Subdivisions
Villages of Patterson
• Villages of Patterson Apartments, A&SP #18-02, Olive Avenue – Submitted building permit • Landon Lane Apartments, A&SP #19-03 – Approved
• Self Help Enterprises single family units – second phase under construction • Patterson Ranch – nearing completion
• Clayton Shire – construction underway
• Camden Shire – construction underway
• Sycamore Ranch I – site work underway
• Triplexes – construction underway
Baldwin Ranch North – Backbone infrastructure nearing completion, building submitting initial design information.

Housing Projects and Programs
• CDBG: Preliminary work on 5th Street Infrastructure project underway. • HOME: City Staff continues to work with First-time Homebuyer Applicants seeking loan approvals.

6.3.a
Packet Pg. 51
Attachment: Monthly Staff Reports (Monthly Department Reports) Community Development Department
Monthly Report
December 2023
The following information is provided as an update regarding the Planning and Housing Division activities during the month of December 2023, as well as updates for previously approved projects.

City Council Meetings
On December 5, 2023, the City Council considered the following item(s):

1. Vesting Tentative Subdivision Map #23-02 – Villages of Patterson Sycamore Ranch II A public hearing to consider a vesting tentative subdivision map encompassing approximately

46.23 acres of land, roughly bounded by Olive Avenue to the south, the future Wimbley Parkway to the west, future English Oak Avenue to the north and Sycamore Avenue to the east. The map would result in 247 lots proposed for development of single-family housing, along with streets and other infrastructure facilities. The project site is located within the Medium-Density Residential Zone and Low-Density Residential Zone and is subject to the Villages of Patterson Master Development Plan. The project was previously reviewed in the Villages of Patterson Environmental Impact Report. On October 26, 2023, the Planning Commission recommended approval of this item to the City Council with a 4-0 vote. The City Council voted 4-0 to approve.

2. Approve the CEQA Addendum to the 2010 General Plan EIR for the Parks and Recreation Master Plan (PRMP) and adopt the Parks and Recreation Master Plan.

The Parks and Recreation Master Plan serves as a long-term vision to guide the future of the City’s park system and provides standards and policies to direct day-to-day decisions. On September 8, 2022, the Planning Commission recommended approval of the master plan to the City Council with a 4-0 vote. The City Council voted 4-0 to approve.

Planning Commission Meetings
On December 21, 2023, the Planning Commission considered the following item(s):

1. Variance #23-01 – Residential Reconstruction – 373 C Street, Patterson, APN: 131-016-017 Consideration of a Variance to allow the reconstruction of a single-family dwelling within the Downtown Residential zone at 373 C Street. The original structure suffered complete loss after a fire. The applicant is seeking approval of the new dwelling with minor variances to the development standards. Due to the small size of the parcel, the proposed dwelling will be built

6.3.a
Packet Pg. 52
Attachment: Monthly Staff Reports (Monthly Department Reports) with no setback from the front property line. Existing dwellings within the area also have zerosetbacks from the front property line. The Planning Commission voted 4-0 to approve this item.

The next regularly scheduled meeting will be held on January 25th at 7:00 PM.

Master Plan Update
The administrative draft Downtown Master Plan (DMP) has been prepared by RRM Design Group and is undergoing final amendments. The public draft Downtown Master Plan will be available for comment and review beginning mid-January as environmental review (CEQA) work on the DMP begins. It is anticipated that the remaining components (including public review/hearings and CEQA) in support of the DMP will be completed leading up to City Council review and adoption in June 2024.

Downtown Plaza Circle String Lighting Project
City staff and technical consultants collaborated during site walk-throughs in early and late November 2023. Draft plans and budgetary estimates are due from the consultant team in early January to then be reviewed by staff.

Status update for major projects approved during 2023
Architectural & Site Plan Reviews
- Sperry Avenue Self Storage - A&SP #22-08, 425 Sperry Avenue – Building permit application submittal pending
- Oak Harbor Freight – A&SP #22-09, CUP #23-02, S. Rogers Rd. – Building permit application submitted
Conditional Use Permits
- AT&T Wireless Tower – CUP #23-01, Community Center – Building permit application submittal pending
- Grandpa Motor Cars – CUP #23-06, 216 I Street – Building permit application submittal pending
Lot Line Adjustments
- Eagle Valley Investments, LLA #22-03, S. 1st Street – Approved Tentative Parcel Maps
- Keystone Pacific, TPM #22-03, Keystone Pacific Parkway – Approved Tentative Subdivision Maps
- Villages of Patterson – Sycamore Ranch II - TSM #23-02 – Approved as highlighted above

6.3.a
Packet Pg. 53
Attachment: Monthly Staff Reports (Monthly Department Reports) A&SP Architectural & Site Plan Review TPM Tentative Parcel Maps CUP Conditional Use Permit TSM Vesting Tentative Maps
LLA Lot Line Adjustment P/A Prezone/Annexation
PD Planned Development ORD Zoning Ordinances/Amendments RZN General Plan Amendment/Rezone VAR Variance
Status update for projects approved in previous years
• Water Office Restaurant – A&SP #22-01, 22 N. Del Puerto Ave. – Construction underway • Southern Tire Mart, A&SP #21-09, CUP #21-10, 2275 Sperry Ave. – Building permit application pending approval
• Sun Valley Industries #2, A&SP #22-02, S. Rogers Road – Approved • Apricot Vet Clinic, A&SP #22-03, CUP #22-04, S. Rogers Road – Building permit issued • VOP Townhouses, A&SP #22-05, N. 1st St. & English Birch Ave. – Under construction • Scott Davis Used Car Sales, CUP #22-06, 317 S. 2nd Street – Approved • Poppy Mini-Storage – CUP #22-07, A&SP #22-06 – Site improvements under construction • VOP 2.1 LLC Lot 36 housing development, north of Olive Avenue, east of Sycamore, A&SP approved
• Popeye’s Restaurant, A&SP #21-07, CUP #21-07, north of Sperry Avenue, east of Park Center Drive, submitted building permit issued
• S2A Modular, A&SP #20-01, CUP #20-04, TPM #20-01 – Site work underway • Nucleus Homeopathics, Inc., A&SP #20-02, CUP #20-05, 240 Park Center Drive – Building permit application pending approval
• Arambel Business Park Warehouse, A&SP #19-02, Rogers Road – Building permit issued • Harvest Samoan Assembly of God Church, A&SP #19-05, CUP #19-05, 415 N. 1st St. – Site work underway
• Safavieh Disctribution Center (McShane Companies) A&SP 07-04 (Phase 3) – Approved

6.3.a
Packet Pg. 54
Attachment: Monthly Staff Reports (Monthly Department Reports) Major Subdivisions
Villages of Patterson
• Villages of Patterson Apartments, A&SP #18-02, Olive Avenue – Submitted building permit • Self Help Enterprises single family units – second phase under construction • Patterson Ranch – nearing completion
• Clayton Shire – nearing completion
• Camden Shire – nearing completion
• Sycamore Ranch I – site work underway
• Sycamore Ranch II – TM approved, pending FM submittal • Triplexes – construction underway
• Baldwin Ranch North – Backbone infrastructure nearing completion, submitting initial design information.

Housing Projects and Programs
• CDBG: Washburn street/sidewalk project plans in review. • HOME: City Staff continues to work with First-time Homebuyer Applicants seeking loan approvals.

6.3.a
Packet Pg. 55
Attachment: Monthly Staff Reports (Monthly Department Reports) City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Aracely Alegre, City Clerk
MEETING DATE: January 16, 2024
ITEM NO: 6.4
SUBJECT: Approve City Commission Reports for the Months of September thru December 2023 (Parks Recreation & Beautification Commission)

RECOMMENDATION
Motion to Approve City Commission Reports for the Months of September thru December 2023 (Parks Recreation & Beautification Commission)

6.4 Packet Pg. 56
September 2023
Parks, Recreation & Beautification
Commission
Monthly Report
The following information is provided as an update regarding the Parks, Recreation & Beautification Commission meeting activities during the month of March and updates for previously approved projects.

Parks, Recreation & Beautification Commission meetings are held on the 3rd Wednesday of every month at 5:00 pm in the City Hall Council Chambers. 5-Member Commission
Chair Adolfo Virgen Term: May 2022-2024
Vice-Chair Kandace Weyhrauch Term: May 2023-2025
Commissioner Oscar Roman Term: May 2023-2025
Commissioner Renelle Layfield Term: May 2022-2024
Commissioner Martha Blanco Term: May 2023-2025
Parks & Recreation & Beautification Commission Meeting:

The regular meeting scheduled for September 20, 2023 was held in person at 5:00 p.m.

The agenda items are listed below.

1. Parks, Recreation and Beautification Award

2. Wall Mural Project

3. Apricot Fiesta Review

4. Adding Shade to Parks

5. Water Tower Mural

6. Back-to-School Block Party Review

7. Chalk Festival Event

8. October Anti-Bullying Month
Agendas & Minutes can be located on the city website under the agenda center.

The next regular meeting will be scheduled for October 18, 2023.The meeting will be held in person in the City Council Chambers.

6.4.a
Packet Pg. 57
Attachment: Monthly Commission Reports (City Commission Reports) October 2023
Parks, Recreation & Beautification
Commission
Monthly Report
The following information is provided as an update regarding the Parks, Recreation & Beautification Commission meeting activities during the month of March and updates for previously approved projects.

The regular meeting scheduled for October 18, 2023 was held in person at 5:00 p.m. The agenda items are listed below.

1. Parks, Recreation and Beautification Award

2. Wall Mural Project

3. Back-to-School Block Party Review

4. October Anti-Bullying Month

5. Holding Additional Parks, Recreation, and Beautification Commission Meetings

6. Moving Teen Nights to Fridays
Agendas & Minutes can be located on the city website under the agenda center.

The next regular meeting will be scheduled for November 15, 2023.The meeting will be held in person in the City Council Chambers.

6.4.a
Packet Pg. 58
Attachment: Monthly Commission Reports (City Commission Reports) November 2023
Parks, Recreation & Beautification
Commission
Monthly Report
The following information is provided as an update regarding the Parks, Recreation & Beautification Commission meeting activities during the month of March and updates for previously approved projects.

The regular meeting scheduled for November 15, 2023 was held in person at 5:00 p.m. The agenda items are listed below.

1. Parks, Recreation and Beautification Award

2. Wall Mural Project

3. Back-to-School Block Party Review

4. October Anti-Bullying Month

5. Moving Teen Nights to Fridays

6. Ways to Recruit More Coaches for Recreation Sport Activities

7. December Meeting Schedule
Agendas & Minutes can be located on the city website under the agenda center.

The next regular meeting will be scheduled for December 20, 2023.The meeting will be held in person in the City Council Chambers.

6.4.a
Packet Pg. 59
Attachment: Monthly Commission Reports (City Commission Reports) December 2023
Parks, Recreation & Beautification
Commission
Monthly Report
The following information is provided as an update regarding the Parks, Recreation & Beautification Commission meeting activities during the month of March and updates for previously approved projects.

The regular meeting scheduled for December 20, 2023 was held in person at 5:00 p.m. The agenda items are listed below.

1. Parks, Recreation and Beautification Award

2. Wall Mural Project

3. Moving Teen Nights to Fridays

4. Ways to Recruit More Coaches for Recreation Sport Activities Agendas & Minutes can be located on the city website under the agenda center.

The next regular meeting will be scheduled for January 20, 2023.The meeting will be held in person in the City Council Chambers.

6.4.a
Packet Pg. 60
Attachment: Monthly Commission Reports (City Commission Reports) City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Mike Willett, Public Works Director
MEETING DATE: January 16, 2024
ITEM NO: 6.5
SUBJECT: Approve Resolution No. 2024- 01 Adopting the Memorandum of Agreement among the Delta-Mendota Subbasin and Groundwater Sustainability Agencies and Approve Resolution No. 2024- 02 Adopting the Special Projects Agreement for Development of a Single Groundwater Sustainability Plan for the Delta-Mendota Subbasin.

RECOMMENDATION
Motion to Approve Resolution No. 2024- 01 Adopting the Memorandum of Agreement among the Delta-Mendota Subbasin and Groundwater Sustainability Agencies and Approve Resolution No. 2024- 02 Adopting the Special Projects Agreement for Development of a Single Groundwater Sustainability Plan for the Delta-Mendota Subbasin

BACKGROUND
In September 2014, the Governor signed legislation creating the Sustainable Groundwater Management Act (“SGMA”) “to provide local groundwater sustainability agencies with the authority and technical and financial assistance necessary to sustainably manage groundwater.

The city of Patterson formed a Groundwater Sustainability Agency (GSA) and adopted its first Sustainability Plan (GSP) on December 17, 2019.

On January 21, 2022, the Department of Water Resources (DWR) completed its review of all the GSPs in the Subbasin and released a letter determining that the GSPs for the Subbasin (as a whole) were “Incomplete” and identified deficiencies and corrective actions for the Subbasin GSAs to take. Revised GSPs addressing the corrective actions from each GSP Group were required to be submitted to DWR by July 20, 2022.

All GSAs comprising of the Northern and Central Regions timely revised and re-submitted the

6.5 Packet Pg. 61
N-C DM GSP to DWR; however, on March 2, 2023, DWR determined all the revised GSPs in the Subbasin, including the N-C DM GSP, were deemed “Inadequate” under SGMA. As a result, in lieu of intervention by the State Water Board, all GSAs now desire to develop and adopt one single GSP for the entire Subbasin.

ANALYSIS
Memorandum of Agreement (MOA)- The change from multiple GSPs to one GSP will no longer require a coordination agreement. However, the Coordination Agreement that was adopted by the City Council on December 12, 2018, will remain binding and in effect until all the GSAs in the Subbasin have approved a single GSP, at which time the Coordination Agreement shall automatically terminate, and the attached MOA shall become operative. This MOA will clarify the responsibilities of the respective GSAs for SGMA purposes.

Special Project Agreement (SPA)- As mentioned above, it is the desire of all GSPs within the DM Subbasin to develop and adopt one single GSP. The purpose of this SPA is to provide the contractual basis for its signatories to utilize the resources of the SLDMWA and allow for coordinated access to administrative and technical resources. It is also the intent of the SPA to provide mechanisms for sharing the benefits and expenses of obtaining such resources for the purpose of developing a single GSP for the Subbasin and to comply with SGMA.

FISCAL IMPACT
There is no fiscal impact associated with these actions. However, there will be costs associated with the continued implementation of the GSP in the coming years. These costs, as they are determined, will be subject to future City Council budget consideration and approval.

6.5 Packet Pg. 62
3395836v1 / 21603.0005 1
RESOLUTION NO. 2024-01

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PATTERSON, ADOPTING THE MEMORANDUM OF AGREEMENT AMONG THE DELTAMENDOTA SUBBASIN GROUNDWATER SUSTAINABILITY AGENCIES AND

AUTHORIZING SIGNATURE THEREON
A. WHEREAS, in August 2014, the California Legislature passed, and in September 2014 the Governor signed, legislation creating the Sustainable Groundwater Management Act (“SGMA”) “to provide local groundwater sustainability agencies with the authority and technical and financial assistance necessary to sustainably manage groundwater” (Wat. Code, § 10720, (d)); and
B. WHEREAS, SGMA requires sustainable management through the development and implementation of a single or multiple coordinated groundwater sustainability plans (“GSPs”) covering a groundwater basin designated by the Department of Water Resources (“DWR”) as medium or high priority (Wat. Code, § 10727); and C. WHEREAS, the Delta-Mendota Subbasin (Basin Number 5-22.07, DWR Bulletin 118), within the San Joaquin Valley Groundwater Basin (“Subbasin”), has been designated as a high-priority, critically overdrafted basin by DWR; and D. WHEREAS, the Subbasin includes multiple groundwater sustainability agencies (each a “GSA” and collectively, the “GSAs”) that initially managed the Subbasin through the development and implementation of six different GSPs covering different portions of the Subbasin (each, a “GSP Group” and collectively the “GSP Groups”); and E. WHEREAS, the City of Patterson GSA was formed to be an exclusive GSA for a portion of the Subbasin; and
F. WHEREAS, the City of Patterson GSA is a member of the Northern and Central Delta-Mendota Regions Group originally formed for the purpose of developing a GSP and coordinating sustainable groundwater management in the Northern and Central Regions of the Subbasin] (Wat. Code, § 10723.6(i)); and
G. WHEREAS, pursuant to the requirements of SGMA and DWR’s SGMA regulations (23 Cal. Code Regs., §§ 350 et seq.), and in recognition of the need to sustainably manage groundwater within the Subbasin, the GSAs within the Subbasin entered into that certain Delta-Mendota Subbasin Coordination Agreement effective December 12, 2018 (“Coordination Agreement”), to outline the respective GSAs’ obligations and responsibilities regarding SGMA coordination in the Subbasin by and among the multiple GSAs and multiple GSPs, in part by establishing a Coordination Committee; and
H. WHEREAS, pursuant to the Coordination Agreement, the San Luis & DeltaMendota Water Authority (“SLDMWA”) agreed to serve as the Plan Manager for the Subbasin

6.5.a
Packet Pg. 63
Attachment: Resolution No. 2024-01 for Adoption of MOA Delta Mendota Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA 3395836v1 / 21603.0005 2
and main point of contact with DWR pursuant to SGMA, and as Secretary to the Coordination Committee; and
I. WHEREAS, all the GSAs comprising of the Northern and Central Regions of the Subbasin coordinated to develop the Northern & Central Delta-Mendota Region GSP (“N-C DM GSP”), which was adopted by the City of Patterson GSA after a public hearing and 90-day notification to the affected city and counties on December 17, 2019; and J. WHEREAS, the Plan Manager submitted the N-C DM GSP, the other Subbasin GSPs, and the Coordination Agreement to DWR on January 23, 2020; and K. WHEREAS, on January 21, 2022, DWR completed its review of all the GSPs in the Subbasin and released a letter determining that the GSPs for the Subbasin as a whole were “Incomplete” and identified deficiencies and corrective actions for the Subbasin GSAs to take.

Revised GSPs addressing the corrective actions from each GSP Group were required to be submitted to DWR by July 20, 2022; and
L. WHEREAS, all GSAs comprising of the Northern and Central Regions of the Subbasin did so timely revise and re-submit the N-C DM GSP to DWR; however, on March 2, 2023, DWR determined that all the revised GSPs in the Subbasin, including the N-C DM GSP, were deemed “Inadequate” under SGMA; and
M. WHEREAS, pursuant to SGMA, upon DWR’s determination that a GSP is Inadequate, SGMA authorizes the State Water Resources Control Board (“State Water Board”) to seek to intervene and exercise jurisdiction over the affected subbasin by declaring it a “probationary” basin (Wat. Code § 10735.2(a)(3)); and
N. WHEREAS, the GSAs in the Subbasin would like to continue to manage the Subbasin locally in lieu of intervention by the State Water Board, if possible, and now desire to develop and adopt one single GSP for the entire Subbasin; and O. WHEREAS, if there is only one GSP for the Subbasin, the GSAs no longer need the Coordination Agreement, which is only required for basins with multiple GSPs; however the GSAs still desire to coordinate work and management of the Subbasin and clarify the responsibilities of the respective GSAs for SGMA purposes; P. WHEREAS, the Coordination Committee has developed that certain Memorandum of Agreement among the Delta-Mendota Subbasin Groundwater Sustainability Agencies (“MOA”) to so govern the GSAs’ SGMA responsibilities and management of the Subbasin; and
Q. WHEREAS, the Coordination Agreement shall remain binding and in effect until all GSAs in the Subbasin have approved a single GSP for the Subbasin, at which time the Coordination Agreement shall automatically terminate, and the MOA shall become operative.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Patterson finds as follows:

6.5.a
Packet Pg. 64
Attachment: Resolution No. 2024-01 for Adoption of MOA Delta Mendota Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA 3395836v1 / 21603.0005 3

1. The facts stated in the recitals above are true and correct, and the City Council so finds and determines.

2. The City of Patterson and the City of Patterson GSA, hereby approve and adopt the Memorandum Agreement among the Delta-Mendota Subbasin Groundwater Sustainability Agencies, in substantially the form attached hereto as Exhibit “A,” and authorizes the executing officer and/or his designee to execute said MOA.

3. The City of Patterson and the City of Patterson GSA authorizes the executing officer and/or his designee and its legal counsel to take such other actions as may be reasonably necessary to deliver the signed MOA to the SLDMWA and implement the purpose of this Resolution.

The foregoing resolution was passed by the City Council at a regular meeting held on the 16th day of January 2024, by , who moved its adoption, which motion was duly seconded by , and the resolution adopted by the following roll call vote:

AYES:

NOES:

EXCUSED:

APPROVED:
______________________________
Michael Clauzel
Mayor of the City of Patterson
ATTEST:
________________________________
Aracely Alegre
City Clerk of the City of Patterson

6.5.a
Packet Pg. 65
Attachment: Resolution No. 2024-01 for Adoption of MOA Delta Mendota Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA 3395836v1 / 21603.0005 4
I do hereby certify that the foregoing is a full, correct, and true copy of a resolution passed by the City Council of said City of Paterson, and Municipal Corporation of the County of Stanislaus, State of California, at a regular meeting held on the 16th day of January 2024 and further certified that the resolution is in full force and effect and has never been rescinded or modified.

DATED:
________________________________
City Clerk of the City of Patterson

6.5.a
Packet Pg. 66
Attachment: Resolution No. 2024-01 for Adoption of MOA Delta Mendota Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA 3349571v11 / 21603.0005 1

MEMORANDUM OF AGREEMENT

AMONG THE DELTA-MENDOTA SUBBASIN

GROUNDWATER SUSTAINABILITY AGENCIES
THIS MEMORANDUM OF AGREEMENT (this “MOA”) is entered into and shall be effective as of the date of full execution below (the “Effective Date”), by and among the groundwater sustainability agencies within the Delta-Mendota Subbasin listed in Exhibit “A” (each a “Party” and collectively the “Parties”) and the San Luis & Delta-Mendota Water Authority, which would be executing not as a Party, and is made with reference to the following facts:

RECITALS
A. WHEREAS, on September 16, 2014, Governor Jerry Brown signed into law Senate Bills 1168 and 1319 and Assembly Bill 1739, known collectively as the Sustainable Groundwater Management Act (“SGMA”); and
B. WHEREAS, SGMA requires all groundwater subbasins designated as high- or medium-priority by the California Department of Water Resources (“DWR”) to manage groundwater in a sustainable manner; and
C. WHEREAS, the Delta-Mendota Subbasin (Basin Number 5-22.07, DWR Bulletin 118) within the San Joaquin Valley Groundwater Basin (“Subbasin”), has been designated as a high-priority, critically overdrafted basin by DWR; and D. WHEREAS, the Subbasin includes multiple groundwater sustainability agencies (each a “GSA” and collectively, the “GSAs”) that initially managed the Subbasin through the development and implementation of six different groundwater sustainability plans; and E. WHEREAS, pursuant to the requirements of SGMA (Wat. Code §§ 10720, et seq.) and DWR’s SGMA regulations (23 Cal. Code Regs., §§ 350, et seq.), and in recognition of the need to sustainably manage the groundwater within the Subbasin, the Parties entered into that certain Delta-Mendota Subbasin Coordination Agreement effective December 12, 2018 (“Coordination Agreement”), to outline the Parties’ obligations and responsibilities regarding SGMA coordination in the Subbasin among the multiple GSAs and multiple groundwater sustainability plans; and
F. WHEREAS, after an approximately two-year review, DWR determined that the coordinated groundwater sustainability plans in the Subbasin were “incomplete” on January 21, 2022, and required that the groundwater sustainability plans be revised to address certain corrective actions by July 20, 2022; and
G. WHEREAS, the Parties did so timely revise and re-submit the amended groundwater sustainability plans to DWR; however, those groundwater sustainability plans, even after revision, were deemed “inadequate” under SGMA by DWR on March 2, 2023; and Exhibit A-MOA

6.5.b
Packet Pg. 67
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 2
H. WHEREAS, the Parties understand that upon DWR’s determination that a groundwater sustainability plan is inadequate, SGMA authorizes the State Water Resources Control Board (“State Water Board”) to seek to intervene and exercise jurisdiction over the affected subbasin; and
I. WHEREAS, the Parties would like to be able to continue to manage the Subbasin locally in lieu of intervention by the State Water Board if possible; and J. WHEREAS, in order to efficiently coordinate among the large number of GSAs in the Subbasin, the GSAs now desire to adopt one groundwater sustainability plan (“GSP”) for the Subbasin; and
K. WHEREAS, if there is only one GSP for the Subbasin, then the GSAs no longer need the Coordination Agreement, as defined by SGMA; and L. WHEREAS, the GSAs desire to enter into this MOA to coordinate the work and management of the Subbasin and clarify responsibilities of the respective GSAs, in accordance with SGMA; and
M. WHEREAS, the Coordination Agreement shall remain binding and in effect until all Parties have approved a single GSP for the Subbasin, at which time the Coordination Agreement shall automatically terminate, and this MOA shall become operative as provided in Section 12.2.

NOW, THEREFORE, in consideration of the Recitals, which are deemed true and correct and incorporated herein, and of the covenants, terms and conditions set forth herein, the Parties hereto agree as follows:

ARTICLE I– DEFINITIONS

1.1 “Coordination Committee” shall mean the committee of GSA Representatives or GSA Group Representatives established pursuant to this MOA.

1.2 “Coordinated Plan Expenses” are those Subbasin-wide Activities expenses that are shared equally amongst the Coordination Committee members, in accordance with the Participation Percentages.

1.3 “DWR” shall mean the California Department of Water Resources.

1.4 “Effective Date” shall be as set forth in the Preamble.

1.5 “GSA” shall mean a groundwater sustainability agency established in accordance with SGMA and its associated regulations, and “GSAs” shall mean more than one such groundwater sustainability agency. Each Party is a GSA.

1.6 “GSA Representative” shall refer to the representative of a single GSA that holds a single seat on the Coordination Committee.

6.5.b
Packet Pg. 68
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 3

1.7 “GSA Group Representative” shall refer to the representative of a group of GSAs that share a single seat on the Coordination Committee.

1.8 “GSP” shall mean the single Delta-Mendota Subbasin Groundwater Sustainability Plan.

1.9 “MOA” shall mean this Memorandum of Agreement by and among the Parties.

1.10 “Participation Percentages” shall mean that percentage of Coordinated Plan Expenses allocated to each GSA or GSA Group as described on Exhibit “B” to this MOA, which is attached and incorporated by reference herein, as updated from time to time, but not more frequently than annually.

1.11 “Party” or “Parties” shall mean a GSA or in the plural, two or more GSAs within the Subbasin, who are signatories to this MOA.

1.12 “Plan Manager” shall mean an entity or individual, appointed at the pleasure of the Coordination Committee, or as provided in Article III of this MOA, to perform the role of the Plan Manager to serve as the point of contact to DWR and/or the State Water Board.

1.13 “San Luis & Delta-Mendota Water Authority” or “SLDMWA” shall mean the San Luis & Delta-Mendota Water Authority, a California joint powers agency.

1.14 “SGMA” shall mean the Sustainable Groundwater Management Act, as amended from time to time, commencing at Water Code section 10720, together with its implementing regulations applicable to groundwater sustainability plans, set forth at California Code of Regulations, Title 23, Division 2, Chapter 1.5, Subchapter 2.

1.15 “SGMA Definitions” shall mean those SGMA-specific definitions provided by statute or regulation; in the event of any inconsistency between a term defined in this MOA and a SGMA-specific definition, the definition contained in this MOA shall prevail.

1.16 “State Water Board” shall mean the California State Water Resources Control Board.

1.17 “Subbasin” shall mean the Delta-Mendota Subbasin (Basin Number 5-22.07, DWR Bulletin 118) within the San Joaquin Valley Groundwater Basin.

1.18 “Subbasin-wide Activities” shall mean those activities or actions that affect the Subbasin as a whole or are otherwise required by SGMA to be determined at the Subbasin level and as defined by a unanimous vote of the Coordination Committee. An initial list of Subbasinwide Activities is identified in Exhibit “D”.

1.19 “Water Year” shall mean the period from October 1 through the following September 30.

6.5.b
Packet Pg. 69
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 4
ARTICLE II– PURPOSE & KEY PRINCIPLES

2.1 Purpose. The Parties shall continue to work together in mutual cooperation to develop the GSP in compliance with SGMA, for the sustainable management of the Subbasin.

Once adopted, each Party hereto shall implement the terms and conditions of the GSP within their respective GSA territories.

2.2 Collaboration. The Parties intend to mutually cooperate to adopt a single GSP for the Subbasin, and to implement the GSP within their respective GSA territories.

2.3 Each Party’s Rights. This MOA shall not limit or interfere with any Party’s rights or authorities over its own internal matters, including, but not limited to, a Party’s legal rights to surface water supplies and assets, groundwater supplies and assets, facilities, operations, water management and water supply matters. Nothing in this MOA is intended to modify or limit a Party’s police powers, land use authorities, or any other authority, including the authority to pursue a comprehensive groundwater adjudication or other alternative SGMA compliance strategy, should the Party deem it to be in its best interest to do so.

2.4 Participation Percentage. Each Party shall pay its proportionate share of the Participation Percentage, to cover coordinated Subbasin-wide Activities, set forth on Exhibit “B,” as said Exhibit “B” may be modified from time to time in accordance with Section 4.6(b). Participation Percentage financial contributions shall be treated in accordance with the provisions of Article III.

2.5 Management and GSP Implementation. It is the responsibility and obligation of each Party to this MOA, and any applicable separate agreements, to manage its own GSA and implement the GSP within its GSA’s boundaries. It is further the responsibility and obligation of each Party to pay its proportionate share of the Participation Percentage and other payments required as part of implementation of SGMA Subbasin-wide Activities, as may arise from time to time.

ARTICLE III– ROLE OF SLDMWA

3.1 Agreement to Serve. By executing this MOA, not as a Party, SLDMWA agrees to carry out the functions described in this Article III and its subparts consistent with the terms of this Article and under the direction and supervision of the Coordination Committee, subject to the reimbursement and the termination provisions contained in this Article. (a) Secretary. SLDMWA agrees to perform the obligations of the Secretary described in this MOA, by delegation to one or more of its employees or to a consultant under contract to the SLDMWA.
(b) Plan Manager. SLDMWA agrees to perform the obligations of the Plan Manager described in this MOA, by delegation to one or more of its employees or to a consultant under contract to SLDMWA.

3.2 Fiscal Management by SLDMWA and Reimbursement to SLDMWA.

SLDMWA will provide necessary financial and administrative support services contemplated by

6.5.b
Packet Pg. 70
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 5
this MOA, including, but not limited to: holding financial contributions made in accordance with the Participation Percentages, accounting for funds held by SLDMWA, reports as requested by the Coordination Committee members concerning funds held, and disbursing said funds for authorized purposes.
(a) Coordination Committee members shall make Participation Percentage contributions required pursuant to this MOA directly to SLDMWA. (b) SLDMWA shall maintain a strict accountability of all funds contributed pursuant to this MOA. SLDMWA shall establish and maintain such accounts to provide for segregation of funds as may be required by good accounting practice. The books and records of SLDMWA pertaining to funds held and expended pursuant to this MOA shall be open to inspection at reasonable times by any entity that has made a contribution.

SLDMWA shall provide an unaudited report of all financial activities for each fiscal year to each Party that has made a contribution during that fiscal year within 60 days after the close of each fiscal year.
(c) SLDMWA shall be authorized to expend funds upon authorization of the Coordination Committee, as provided for in this MOA.
(d) Upon mutual agreement of SLDMWA and each entity obligated to contribute funds pursuant to the Participation Percentages, SLDMWA and the Parties may execute a further agreement concerning fiscal responsibilities not inconsistent with the terms described herein.

3.3 Termination of SLDMWA’s Services. Either the Parties acting through the Coordination Committee or SLDMWA, at any time, may terminate the services being provided by SLDMWA pursuant to this MOA upon thirty (30) days’ written notice, if from SLDMWA, to the Coordination Committee; and if from the Coordination Committee, to SLDMWA.

ARTICLE IV– COORDINATION COMMITTEE

4.1 Coordination Committee.
(a) The Parties agree to establish a Coordination Committee to perform the functions set forth in this Section 4 in accordance with the voting procedures and requirements set forth herein. Recommendations from the Coordination Committee that require approval or action of each GSA within the Subbasin shall be provided to each Party’s respective governing boards for adoption, approval or other recommended action. (b) The Coordination Committee will consist of a total of seven (7) voting members to represent the Subbasin and shall be comprised of the representative of a GSA (“GSA Representative”) or a group of GSAs (a “GSA Group Representative”), as identified on Exhibit “B.” Each GSA Representative or GSA Group Representative shall have one Alternate Representative authorized to vote in the absence of the GSA Representative or GSA Group Representative, as applicable.

6.5.b
Packet Pg. 71
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 6
(c) Individuals serving on the Coordination Committee as a GSA Representative or GSA Group Representative shall be selected by each respective GSA or GSA Group at the discretion of that particular GSA or GSA Group, and such appointments shall be effective upon providing written notice to the Secretary. (d) The Coordination Committee will recognize each GSA Representative or GSA Group Representative and their applicable Alternative Representatives until such time as the Secretary is provided written notice of removal and replacement of said Representative.
(e) Minutes of the Coordination Committee will be prepared and maintained by the Secretary as set forth in Article 4.4(b).

4.2 Representation. Each Party understands its participation, as more fully set forth in Article IV of this MOA, is based on representation on the Coordination Committee. It is the responsibility and obligation of each Party under this MOA to develop its manner of selecting its respective Coordination Committee Representative and Alternate Representative. For purposes of this MOA, it is assumed that each Coordination Committee Representative has been authorized by the Parties in their respective GSA or GSA Group to participate as described herein.

4.3 Non-Entity Status. The Parties acknowledge and agree that the Coordination Committee created by this MOA does not create a legal entity with power to sue or be sued, to enter into contracts, to enjoy the benefits or accept the obligations of a legal entity, or to exercise any legal authority. The Coordination Committee is not a GSA.

4.4 Coordination Committee Officers. The Officers of the Coordination Committee will include a Chair, Vice Chair, and the Secretary. Except where the Parties have named such Officer in Article III of this MOA, Officers shall be selected at the initial meeting of the Coordination Committee or as soon thereafter as reasonably can be accomplished. (a) Chair and Vice Chair. Any GSA Representative or GSA Group Representative may serve as the Chair. The Vice Chair, who shall also be a GSA Representative or GSA Group Representative, shall serve in the absence of the Chair. In the absence of both the Chair and Vice Chair, a meeting may be led by an Acting Chair, selected on an ad hoc basis, who is a member of the Coordination Committee.

The positions of Chair and Vice Chair shall rotate among the GSA Representative and GSA Group Representatives on the Coordination Committee on an annual basis according to alphabetical order, by name of the GSA or GSA Group, with the first rotation beginning on the date the first Chair is selected. The schedule for annual rotation of Chair and Vice Chair will be set at the first meeting after the Chair is appointed and reviewed and rotated annually at the first meeting of the Water Year. Any GSA Representative or GSA Group Representative may waive designation as Chair. In such a case, the office of Chair would rotate to the next designated entity. (b) Secretary. By a simple majority vote, the Coordination Committee shall select a Secretary to carry out the functions described in this Article 4.4(b), to serve at the

6.5.b
Packet Pg. 72
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 7
pleasure of the Coordination Committee. The Secretary may, but need not, be a Party to this MOA. Notwithstanding the requirement for a majority vote of the Coordination Committee to appoint a Secretary, SLDMWA is hereby designated to serve as the initial Secretary. Termination of SLDMWA’s services is subject to Article 3.3.

The Secretary shall select an appointee (who may be SLDMWA staff or a consultant contracting with SLDMWA) to implement the Secretary’s responsibilities under this MOA, for example, to coordinate meetings; prepare agendas; circulate notices and agendas; provide written notice to all Parties that the Coordination Committee has made a recommendation requiring approval by the Parties; prepare and maintain minutes of meetings of the Coordination Committee; receive notices on behalf of the Coordination Committee and call to the Coordination Committee’s attention the need for responding; and provide such other assistance in coordination as may be appropriate.

The Secretary shall assume primary responsibility for Ralph M. Brown Act compliance, including without limitation, the responsibility to prepare an agenda and notices, publicly post and distribute agendas to all Coordination Committee Representatives and Alternate Representatives, the Parties, and any other person who requests, in writing, such notices. The agenda shall be of adequate detail to inform the public and the Parties of the meeting and the matters to be transacted or discussed and shall be posted in a public location and distributed to each of the Parties to this MOA in compliance with the noticing requirements of the Ralph M. Brown Act.

4.5 Plan Manager. By a simple majority vote of Coordination Committee members present, the Coordination Committee shall select a Plan Manager, who may be a consultant hired by the Secretary, as directed by the action of the Coordination Committee pursuant to this MOA, the representative of an entity that has been selected as Secretary, or a public agency serving as or participating in a GSA that is a Party to this MOA, and who shall serve as the point of contact for DWR as specified by SGMA. Notwithstanding the requirement for a majority vote of the Coordination Committee to appoint a Plan Manager, SLDMWA is hereby designated as the initial Plan Manager, to serve at the pleasure and direction of the Coordination Committee, pursuant to Article III above.

The Plan Manager shall carry out the duties of a “plan manager” as provided in Title 23, division 2, Chapter 1.5, Subchapter 2, California Code of Regulations.

The Plan Manager has no authority to make policy decisions or represent the Coordination Committee without the specific direction of the Coordination Committee. The Plan Manager is obligated to disclose all substantive communications he/she transmits and receives in his/her capacity as Plan Manager to the Coordination Committee.

4.6 Coordination Committee Authorized Actions. The Coordination Committee is authorized to act upon the following enumerated items:
(a) By a simple majority vote of Coordination Committee members present at a regular or special meeting, the Coordination Committee shall review and approve:

6.5.b
Packet Pg. 73
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 8
(i) recommendation(s) to the GSAs for approving any technical analyses; (ii) updating of technical analyses as needed;
(iii) developing budgets for Subbasin-wide Activities;
(iv) providing assistance with grants and with coordinated projects and programs;
(v) assigning work to subcommittees and workgroups as needed, providing guidance and feedback, and ensuring that subcommittees and workgroups prepare work products in a timely manner; and
(vi) providing direction to its Officers concerning other administrative and ministerial issues necessary for the fulfillment of the above-enumerated tasks.
(b) By a unanimous vote of Coordination Committee members, the Coordination Committee shall review and approve:
(i) determination of Subbasin-wide Activities, which are initially described in Exhibit “D”, but may be modified by the Coordination Committee from time to time;
(ii) submittal of annual reports;
(iii) a representative monitoring network;
(iv) final budgets;
(v) submittal of five-year updates;
(vi) revisions to this MOA;
(vii) adding new Parties to this MOA;
(viii) work plans;
(ix) annual estimates of Coordinated Plan Expenses presented by the Secretary and any updates to such estimates, in accordance with the budgetary requirements of the respective Parties; provided, that such estimates or updates with supporting documentation shall be circulated to all Parties for comment at least thirty (30) days in advance of the meeting at which the Coordination Committee will consider approval of the annual estimate;
(x) directing the Plan Manager in the performance of its duties under SGMA; and
(xi) the hiring of consultants for Subbasin-wide Activities, providing direction to and supervision over consultants engaged to assist in acquiring and processing technical data, conducting monitoring and reporting, and all other activities in support of Subbasin-wide Activities.

6.5.b
Packet Pg. 74
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 9

4.7 Coordination Committee Limitations. When the terms of this MOA or applicable law require the approval of a GSA (such as approval of the GSP, acceptance of an annual report, or approval of a five-year update), that approval shall be required and evidenced as indicated in Article V of this MOA. The Coordination Committee is not a separate GSA and shall not be responsible for approving the GSP, any annual report, or any five-year update thereto; each GSA retains responsibility for such approvals. The Coordination Committee may make recommendations to the Parties for approval of the GSP, an annual report, or any five-year update of the GSP.

4.8 Subcommittees and Workgroups. The Coordination Committee may appoint ad hoc or standing subcommittees, workgroups, or otherwise direct staff made available by the Parties. Such subcommittees or workgroups may include qualified individuals possessing the knowledge and expertise to advance the goals of the GSP on the topics being addressed by the subcommittee, whether or not such individuals are GSA Representatives, GSA Group Representatives or Alternate Representatives.

4.9 Coordination Committee Meetings.
(a) Timing and Notice. The Chair of the Coordination Committee, any two GSA Representatives or GSA Group Representatives, or the Secretary may call meetings of the Coordination Committee as needed to carry out the activities described in this MOA.

The Coordination Committee may, but is not required to, set a date for regular meetings for the purposes described in this MOA. All Coordination Committee meetings shall be held in compliance with the Ralph M. Brown Act (Gov. Code § 54950 et seq.). (b) Quorum. A majority of the Coordination Committee members, as listed on Exhibit “B”, shall constitute a quorum of the Coordination Committee for purposes of holding a meeting. The Alternate Representative of each GSA or GSA Group shall be counted towards a quorum and as the voting representative(s) in absence of the Coordination Committee GSA Representative or GSA Group Representative for which the Alternate Representative was appointed. If less than a quorum is present, no action may be taken.
(c) Open Attendance. Members of the public, stakeholders, and representatives of the Parties who are not appointed as a GSA Representative or GSA Group Representative on the Coordination Committee may attend all Coordination Committee meetings and shall be provided with an opportunity to comment on matters on the meeting agenda, but shall have no vote.
(d) Minutes. The Secretary’s appointee shall keep and prepare minutes of all Coordination Committee meetings. Notes of subcommittee and workgroup meetings shall be kept by the Secretary’s appointee or an assistant to the appointee. All minutes and subcommittee and workgroup meeting notes shall be maintained by the Secretary as Subbasin records and shall be available to the Parties and the public upon request.

6.5.b
Packet Pg. 75
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 10

4.10 Voting by Coordination Committee.
(a) Each GSA Representative or GSA Group Representative that is a member of the Coordination Committee shall be entitled to one (1) vote at the Coordination Committee meetings. For GSAs represented by a GSA Group Representative, it shall be up to the Parties in that GSA Group to determine how the GSA Group vote will be cast.

The Coordination Committee shall not be obligated to honor the vote of an individual Party and will only accept the vote of the GSA Representative or GSA Group Representative or Alternate Representative, as identified on Exhibit “B”. (b) Except as expressly set forth in Articles 4.6 above and 4.11 and 11.1 below, the vote of a majority of a quorum present at a regular or special meeting of the Coordination Committee shall be required for all other matters on which the Coordination Committee is authorized to act.

4.11 Voting Procedures to Address Lack of Unanimity. When it appears likely that the Coordination Committee will not be able to come to a unanimous decision of Coordination Committee members on any matter for which a unanimous decision is required, upon a majority vote of a quorum of the Coordination Committee, the matter may be subjected to any or all of the following additional procedures.
(a) Straw Polls. Straw poll votes may be taken for the purpose of refining ideas and providing guidance to the Coordination Committee, subcommittees, or both. (b) Provisional Voting. Provisional votes may occur prior to final votes. This will be done when an initial vote is needed to refine a proposal, but the GSA Representatives or GSA Group Representatives wish to consult with their respective GSA or GSA Group(s) before making a final vote.
(c) A vote shall be delayed if any GSA Representative or GSA Group Representative declares its intention to propose an alternative or modified recommended action, to be proposed at the next meeting, or as soon thereafter as the GSA Representative or GSA Group Representative can obtain any further information or clarifying direction from its GSA Group or governing body, or both, as needed to propose its alternative or modified recommended action.
(d) If the process outlined in Article 4.11(a)-(c) fails to result in a unanimous vote of the GSA Representatives and GSA Group Representatives, any GSA Representative or GSA Group Representative not voting in favor of the recommended action may request that the vote be delayed so that the Coordination Committee can obtain further information on the recommended action (for example, by directing a subcommittee established under this MOA), so the GSA Representative or GSA Group Representative can obtain clarifying direction from its GSA Group or governing body, or both, as needed. (e) Each Party acknowledges that time is of the essence with respect to SGMA compliance and GSP implementation and agrees to make its best efforts to cooperate

6.5.b
Packet Pg. 76
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 11
through the Coordination Committee in coming to a unanimous vote of representatives at a regular or special meeting.

ARTICLE V – APPROVAL BY INDIVIDUAL PARTIES

5.1 Where law or this MOA require separate written approval by each of the Parties, such approval shall be evidenced in writing by providing the adopted resolution or minutes of the respective GSA’s Board of Directors’ meeting to the Secretary of the Coordination Committee.

ARTICLE VI – POWERS RESERVED TO PARTIES

6.1 Nothing in this MOA shall be interpreted to deprive any Party of its right to:
(a) Act as a GSA within its boundaries;
(b) Exercise authorities granted to each of the Parties as a GSA under SGMA in a manner consistent with the adopted GSP;
(c) Exercise authority to implement SGMA and any GSP adopted pursuant to this MOA consistent with the terms and conditions set forth therein; and (d) Defend, with legal counsel of its own choosing, any challenge to the adoption or implementation of a GSP developed pursuant to this MOA.

ARTICLE VII – EXCHANGE OF DATA AND INFORMATION

7.1 Exchange of Data and Information. The Parties acknowledge and recognize pursuant to this MOA that the Parties will need to exchange data and information among and between the Parties.

7.2 Procedure for Exchange of Data and Information.
(a) The Parties shall exchange public and non-privileged information through collaboration and/or informal requests made at the Coordination Committee level or through subcommittees designated by the Coordination Committee. However, to the extent it is necessary to make a written request for information to another Party, each Party shall designate a representative to respond to information requests and provide the name and contact information of the designee to the Coordination Committee. Requests may be communicated in writing and transmitted in person or by mail, facsimile, or other electronic means to the appropriate representative as named in this MOA. The designated representative shall respond in a reasonably timely manner. (b) Nothing in this MOA shall be construed to prohibit any Party from voluntarily exchanging information with any other Party by any other mechanism separate from the Coordination Committee.
(c) The Parties agree that each GSA shall provide the data required to develop the Subbasin-wide coordinated water budget.

6.5.b
Packet Pg. 77
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 12
(d) To the extent that a court order, subpoena, or the California Public Records Act is applicable to a Party, such Party in responding to a request made pursuant to the California Public Records Act for release of information exchanged from another Party shall timely notify the Coordination Committee in writing of its proposed release of information in order to provide the other Parties with the opportunity to seek a court order preventing such release of information.

ARTICLE VIII – MONITORING NETWORK

8.1 In accordance with SGMA, the Parties hereby agree to coordinate the development and maintenance of a monitoring network at a Subbasin level. The Subbasin monitoring network description shall include monitoring objectives, protocols, and data reporting requirements specific to enumerated sustainability indicators. Each GSA is responsible for the following:
(a) Operating and maintaining the representative monitoring network within its boundary;
(b) Filling data gaps in its GSA on a defined schedule; (c) Collecting data per the approved Subbasin-wide monitoring protocol; (d) Considering developing and maintaining a supplementary network for collecting data in excess of the minimum need, for the purposes of supporting local management decisions (since the level of detail necessary may not be sufficient in a Subbasin level network); and
(e) Each GSA shall have a minimum of one representative monitoring well (measuring water level and water quality) from each aquifer (above the Corcoran Clay layer – shallow aquifer, or below the Corcoran Clay layer – deep aquifer) in which it has groundwater pumping either within its GSA boundaries or within the area of influence of the pumping that is occurring, sufficient to meet the recommendations of the Subbasinwide GSP consultant.

8.2 The minimum monitoring network shall be based on the evaluation performed by the Subbasin-wide GSP consultant and may change from time to time. The Subbasin-wide GSP consultant shall evaluate the monitoring network to ensure:
(a) There is a proper spatial and temporal coverage to inform a groundwater model;
(b) The level of monitoring is commensurate with the use in an area (e.g., limited monitoring well(s) in areas that do not pump or higher density of survey benchmarks in areas that have numerous deep wells); and (c) The network is balanced, so that should an exceedance occur, it is not biased or weighted as a function of a poorly distributed monitoring network.

6.5.b
Packet Pg. 78
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 13
ARTICLE IX – COORDINATED DATA MANAGEMENT SYSTEM

9.1 The Parties developed and currently maintain a coordinated data management system that is capable of storing and reporting information relevant to the reporting requirements and/or implementation of the GSP and monitoring network of the Subbasin. After providing the Coordination Committee with data from the individual GSAs, the Plan Manager will ensure the data is stored and managed in a coordinated manner throughout the Subbasin and reported to DWR annually as required.

ARTICLE X – ADAPTIVE MANAGEMENT FRAMEWORK

10.1 The Coordination Committee established a “Adaptive Management Framework” applicable to all GSAs in the Subbasin, which is attached hereto as Exhibit “C” and incorporated herein by this reference. This Adaptive Management Framework shall be further refined as part of the GSP development and implementation.

10.2 If and when required pursuant to Exhibit “C”, each Party to this Agreement shall participate in the procedures discussed therein without regard to whether the Party is represented by another entity on the Coordination Committee

10.3 As part of the Adaptive Management Framework, each Party commits to continue to evaluate and implement projects and management actions (“P&MAs”) within its boundaries to reach sustainability in compliance with SGMA.

ARTICLE XI – MODIFICATION OF THIS MOA

11.1 Addition of a Party. A Party may be added to this MOA only upon the unanimous vote of Coordination Committee members at a regular or special meeting, the Party’s execution of a counterpart of this MOA, and its provision of any additional documentation required by this MOA. No Party may be added that is not a GSA within the Subbasin or that fails to share in GSP coordinated expenses.

11.2 Modification or Amendment of this MOA. The Parties hereby agree that this MOA may be supplemented, amended, or modified only by a writing signed by all Parties.

11.3 Amendment for Compliance with Law. Should any provision of this MOA be determined to not be in compliance with legal requirements under circumstances where amendment of the MOA to include a provision addressing the legal requirement will cure the noncompliance, the Parties agree to promptly prepare and shall not unreasonably withhold approval of such amendment.

ARTICLE XII – WITHDRAWAL, TERM, AND TERMINATION

12.1 Withdrawal. A Party may unilaterally withdraw from this MOA without causing or requiring termination of this MOA, effective upon one (1) year written notice to the Secretary and all other Parties. The Plan Manager shall report any such withdrawal to DWR and/or the State Water Board within five (5) days of receipt of the written notice.

6.5.b
Packet Pg. 79
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 14
Any Party who withdraws shall remain obligated for GSP coordinated expenses as provided in a separate Cost Sharing Agreement. If no separate Cost Sharing Agreement is then in effect or enforceable against the withdrawing Party, the Party is obligated to pay its share of all debts, liabilities, and obligations the Party incurred or accrued under the MOA prior to the effective date of such withdrawal, which is one (1) year after providing written notice to the Secretary and all other Parties, and as also may be established under its separate GSA Group agreement, as applicable, concerning such share of obligations.

Upon withdrawal, a Party agrees that it has a continuing obligation to comply with SGMA and any coordination guidelines and regulations issued by DWR, which require a coordination agreement if there are multiple groundwater sustainability plans in the Subbasin. This obligation shall survive the withdrawal from this MOA and is for the express benefit of the remaining Parties.

12.2 Term; Termination of Coordination Agreement. This MOA shall take effect on the Effective Date. Provisions requiring compliance with, and implementation of, the GSP, shall become operative and binding upon the adoption of the GSP. Unless modified as provided in Article 11.2 or terminated as provided in Article 12.3, this MOA shall continue for a term that is coterminous with the requirements of SGMA for the existence of the GSP for the Subbasin. At the time the GSP is adopted by all Parties and this MOA is operative and binding upon the Parties, the Coordination Agreement shall automatically terminate.

12.3 Termination. This MOA may be terminated or rescinded by the unanimous written consent of all Parties. Nothing in this MOA shall prevent the Parties from entering into a coordination agreement for coordination with any other subbasin.

12.4 Indemnification. No Party nor SLDMWA, nor any director, officer or employee of a Party or SLDMWA, shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by another Party or SLDMWA under or in connection with this MOA. Each Party shall fully indemnify and hold harmless each other Party and SLDMWA and its agents, directors, officers, employees and contractors from and against all claims, damages, losses, judgments, liabilities, expenses and other costs, including litigation costs and attorney fees, arising out of, resulting from, or in connection with any work delegated to or action taken or omitted to be taken by such Party pursuant to this MOA.

ARTICLE XIII – PROCEDURES FOR RESOLVING CONFLICTS

13.1 In the event of any dispute arising from or relating to this MOA, except for disputes arising from the inability of the Coordination Committee to reach a unanimous decision, the disputing Party shall, within thirty (30) calendar days of discovery of the events giving rise to the dispute, notify all Parties to this MOA in writing of the basis for the dispute. Within thirty (30) calendar days of receipt of said notice, all interested Parties shall meet and confer in a good-faith attempt to informally resolve the dispute. All disputes that are not resolved informally shall be submitted to arbitration. Within ten (10) days following the failed informal proceedings, each interested Party shall nominate and circulate to all other interested Parties the name of one arbitrator. Within ten (10) days following the nominations, the interested Parties shall rank their top three (3) among all nominated arbitrators, awarding three points to the top choice, two points

6.5.b
Packet Pg. 80
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 15
to the second choice, one point to the third choice and zero points to all others. Each interested Party shall forward its tally to the Secretary, who shall tabulate the points and notify the interested Parties of the arbitrator with the highest cumulative score, who shall be the selected arbitrator. The Secretary may also develop procedures for approval by the Parties, for selection in the case of tie votes or in order to replace the selected arbitrator in the event such arbitrator declines to act. The arbitration shall be administered in accordance with the procedures set forth in the California Code of Civil Procedure, section 1280, et seq., and of any state or local rules then in effect for arbitration pursuant to said section. Upon completion of arbitration, if the controversy has not been resolved, any Party may exercise all rights to bring a legal action relating to the controversy.

ARTICLE XIV – GENERAL PROVISIONS

14.1 Authority of Signers. The individuals executing this MOA represent and warrant that they have the authority to enter into this MOA and to legally bind the Party for whom they are signing to the terms and conditions of this MOA.

14.2 Governing Law. The validity and interpretation of this MOA will be governed by the laws of the State of California without giving effect to the principles of conflict of laws, with venue for all purposes to be proper only in the County of Merced, State of California.

14.3 Severability. Except as provided for cure by amendment in Articles 11.2 and 11.3, if any term, provision, covenant, or condition of this MOA is determined to be unenforceable by a court of competent jurisdiction, it is the Parties’ intent that the remaining provisions of this MOA will remain in full force and effect and will not be affected, impaired, or invalidated by such a determination.

14.4 Counterparts. This MOA may be executed in any number of counterparts, each of which will be an original, but all of which will constitute one and the same agreement.

14.5 Good Faith. The Parties agree to exercise their best efforts and utmost good faith to effectuate all the terms and conditions of this MOA and to execute such further instruments and documents as are reasonably necessary, appropriate, expedient, or proper to carry out the intent and purposes of this MOA.

Signatures on following page

6.5.b
Packet Pg. 81
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 16
IN WITNESS WHEREOF, the Parties have executed this MOA as of the Effective Date.

Dated: ________________________ ALISO WATER DISTRICT GSA Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ CENTRAL DELTA-MENDOTA GSA Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ CITY OF DOS PALOS GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ CITY OF FIREBAUGH GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ CITY OF GUSTINE GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ CITY OF LOS BANOS GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ CITY OF MENDOTA GSA
Print Name: __________________________
Print Title: ___________________________

6.5.b
Packet Pg. 82
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 17
Dated: ________________________ CITY OF NEWMAN GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ CITY OF PATTERSON GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ COUNTY OF MADERA–3 GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ COUNTY OF MERCED DELTA-MENDOTA GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ DM II GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ FARMERS WATER DISTRICT GSA Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ FRESNO COUNTY MANAGEMENT AREA A GSA
Print Name: __________________________
Print Title: ___________________________

6.5.b
Packet Pg. 83
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 18
Dated: ________________________ FRESNO COUNTY MANAGEMENT AREA B GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ GRASSLAND GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ NORTHWESTERN DELTA-MENDOTA GSA Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ ORO LOMA WATER DISTRICT GSA Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ PATTERSON IRRIGATION DISTRICT GSA Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ SAN JOAQUIN RIVER EXCHANGE

6.5.b
Packet Pg. 84
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 19
Dated: ________________________ WEST STANISLAUS IRRIGATION DISTRICT GSA 1
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ WIDREN WATER DISTRICT GSA Print Name: __________________________
Print Title: ___________________________
EXECUTING NOT AS A PARTY:

Dated: ________________________ SAN LUIS & DELTA-MENDOTA WATER

AUTHORITY
Print Name: __________________________
Print Title: ___________________________

6.5.b
Packet Pg. 85
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 20
EXHIBIT “A”
Parties to the MOA

1. Aliso Water District GSA

2. Central Delta-Mendota GSA
(Includes: San Luis Water District, Panoche Water District, Tranquillity Irrigation District, Fresno Slough Water District, Eagle Field Water District, Pacheco Water District, Santa Nella County Water District, Mercy Springs Water District, County of Merced, and County of Fresno)

3. City of Dos Palos GSA

4. City of Firebaugh GSA

5. City of Gustine GSA

6. City of Los Banos GSA

7. City of Mendota GSA

8. City of Newman GSA

9. City of Patterson GSA

10. County of Madera–3 GSA

11. County of Merced Delta-Mendota GSA

12. DM II GSA

13. Farmers Water District GSA

14. Fresno County Management Area A GSA

15. Fresno County Management Area B GSA

16. Grassland GSA

17. Northwestern Delta-Mendota GSA

18. Oro Loma Water District GSA

19. Patterson Irrigation District GSA

20. San Joaquin River Exchange Contractors GSA
(Includes: Central California Irrigation District, San Luis Canal Company, Firebaugh Canal Water District, and Columbia Canal Company)

6.5.b
Packet Pg. 86
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 21

21. Turner Island Water District–2 GSA

22. West Stanislaus Irrigation District GSA 1

23. Widren Water District GSA

6.5.b
Packet Pg. 87
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 22
EXHIBIT “B”
Coordination Committee Representatives & Participation Percentages Coordination Committee Representatives Group Contact Agency Participation
Percentage
1 Aliso Water District GSA Aliso Water District GSA 1/7 Aliso Water District GSA
2 Farmers Water District GSA Farmers Water District GSA 1/7 Farmers Water District GSA
3 Fresno County Management Area A and B GSAs
Group Fresno County 1/7
Fresno County Management Area A GSA
Fresno County Management Area B GSA
4 Central Delta-Mendota GSAs Group Central Delta-Mendota GSA 1/7 Central Delta-Mendota GSA
Oro Loma Water District GSA
Widren Water District GSA
5 Northern Delta-Mendota GSAs Group West Stanislaus Irrigation District 1/7 City of Patterson GSA

DM-II GSA
Northwestern Delta-Mendota GSA
Patterson Irrigation District GSA
West Stanislaus Irrigation District GSA
6 Grassland GSAs Group Grassland Water District 1/7
Grassland GSA
Merced County Delta-Mendota GSA
7 San Joaquin River Exchange Contractors GSAs
Group
San Joaquin River Exchange
Contractors GSA 1/7
City of Dos Palos GSA
City of Firebaugh GSA
City of Gustine GSA
City of Los Banos GSA
City of Mendota GSA
City of Newman GSA
Madera County GSA
Merced County Delta-Mendota GSA
San Joaquin River Exchange Contractors GSA
Turner Island Water District-2 GSA

6.5.b
Packet Pg. 88
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 23
EXHIBIT “C”

ADAPTIVE MANAGEMENT FRAMEWORK FOR THE SUBBASIN
The Groundwater Sustainability Agencies (“GSAs”) in the Delta-Mendota Subbasin (the “Subbasin”) acknowledge that the Sustainable Groundwater Management Act (“SGMA”) has a long-term horizon to achieve sustainability and that management of the Subbasin will require an iterative process on the part of the GSAs and the Coordination Committee to review groundwater conditions at least annually and propose revisions to underlying data, methodologies, assumptions, sustainable management criteria, projects, management actions, and other Subbasin-wide coordinated information as necessary to meet changing conditions. Accordingly, the GSAs in the Subbasin establish the following framework for addressing MT exceedances in the SGMA implementation period, as will be further described in the adopted GSP:

1. As a Subbasin-wide Activity, the Subbasin-wide GSP Consultant shall initiate a review of Subbasin-wide data within sixty (60) days after that data is due to be submitted by each GSA (the “Review”). As reporting dates vary based upon the Sustainable Management Criteria (“SMC”), this Review will be done on a regular basis and will be a regular agenda item on the Coordination Committee agendas.

2. The Review shall take into account all matters to be considered in the Annual Report pursuant to the DWR Regulations, section 356.2, including, but not limited to, changes in groundwater elevation, groundwater storage, subsidence, water quality and the status of minimum thresholds (“MTs”) and interim milestones in the Subbasin GSP.

3. Should GSA activities result in either a) a pattern of data showing a downward trend (towards a MT exceedance), or b) a MT exceedance, the Coordination Committee (at the recommendation of the Plan Manager, a designated subcommittee, or the Subbasin-wide GSP Consultant) shall immediately notify the GSA and add the downward trend or exceedance information to the next Coordination Committee agenda packet. That GSA shall also be provided with a checklist to help evaluate possible causes of the MT downward trend or exceedance.

4. The GSA may request the Subbasin-wide GSP Consultant to coordinate such trend or exceedance information with that GSA’s own consultant, as applicable. Within thirty (30) days of said notice, the GSA shall present a plan of action to the Coordination Committee to address how the GSA will mitigate any downward trend or exceedance and in what timeframe. The intent is for the Coordination Committee to discuss the mitigation plan in an effort to provide helpful ideas to the GSA. However, the GSA is solely responsible for the management actions within its boundaries and the costs to remedy the cause of the MT exceedance if it is attributed to activities occurring within such GSA’s jurisdictional boundaries and/or that GSA is not operating within its Sustainable Yield (the “Responsible GSA”). At its sole cost and expense, the Responsible GSA may ask the Subbasin-wide GSP Consultant to further determine: (a) what caused the exceedance; (b) whether or not the Responsible GSA has control over the cause of the MT downward trend or exceedance; (c) whether it is an intra-basin impact from another GSA or an inter-basin impact by a neighboring subbasin; and (d) whether or not the MT exceedance caused injury.

6.5.b
Packet Pg. 89
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 24

5. If there is a determination by the Subbasin-wide GSP Consultant that any MT downward trend or exceedance was caused by intra-basin impacts from another GSA within the Subbasin, such determination will be brought back to the Coordination Committee for further discussion and potential Subbasin-wide action. The Coordination Committee will work with other GSAs to increase existing GSA coordination to remedy the issues causing the downward trend or exceedance and to remedy the responsibility of costs associated with identifying and mitigating the exceedance.

6. If there is a determination that any MT exceedance was caused by a neighboring subbasin, this should be brought back to the Coordination Committee for further discussion and potential Subbasin-wide action. Costs for initial investigation by the Subbasin-wide GSP Consultant of a MT downward trend or exceedance across Subbasin boundary lines (such as water quality issues, subsidence, or depletion of interconnected surface waters) shall be shared amongst the Coordination Committee equally between Coordination Committee members (i.e. 1/7th each).

The Coordination Committee will work with other subbasins to expand existing inter-basin coordination to remedy the issues causing the downward trends or exceedances.

7. In the event that the GSA is unable to mitigate or avoid future MT exceedances with its existing projects and management actions (“P&MAs”) and within the timeframe presented to the Coordination Committee, the GSA may seek assistance from the Coordination Committee.

The Coordination Committee may recommend policies or programs to the GSA that the GSA could, in its discretion, adopt to remedy the existence of a MT exceedance and to avoid undesirable results. Furthermore, the Coordination Committee may consider setting triggers in the GSP for GSAs to implement management actions [e.g., sequencing P&MAs] or work on alternative options.

6.5.b
Packet Pg. 90
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 25
The Coordination
Committee provides
immediate notice to each
GSA with a MT
Exceedance & discusses it
at the following
Coordination Committee
meeting. The GSA is
provided with a checklist to
help evaluate possible
causes.

On a rolling
basis, annual
data and
information is
due to the
Subbasin-wide
consultant.

Within 60 days of
deadline to submit
information,
Subbasin-wide
consultant Reviews
data for MT
Exceedances &
potential trends in
said exceedances
Within 30 days of
receiving such
information, the GSA
with MT Exceedances
presents a mitigation
plan & timeline to the
Coordination
Committee
GSA may decide
to have Subbasin
consultant do
further research,
at its sole cost.

Within timeframe
presented by GSA,
GSA presents to
Coordination
Committee
mitigation plan that is
successful.

Within timeframe
presented by GSA,
MT Exceedances
are still occurring.

GSA and Subbasinwide GSP Consultant
determine that MT
Exceedance is caused
by neighboring
subbasin GSA(s) or
intra-basin Subbasin
GSA impacts
Coordination
Committee meets
& negotiates with
neighboring
Subbasin GSA or
GSA(s)
GSA &
Coordination
Committee
recommend
triggers in GSP for
implementing
P&MAs GSA &
Coordination
Committee work
on alternative
options.

6.5.b
Packet Pg. 91
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3349571v11 / 21603.0005 26
EXHIBIT “D”

SUBBASIN-WIDE ACTIVITIES
(Initial List)
 Preparation of and submittal of annual reports
 Preparation of annual estimates of Coordinated Plan Expenses presented by the Secretary and any updates to such estimates, in accordance with the budgetary requirements of the respective Parties
 Plan Manager costs and expenses for the work directed by the Coordination Committee
 Subbasin-wide Consultant costs and expenses, including, but not limited to, collecting information from the Subbasin GSAs, processing technical data, and those identified in Exhibit “C” for the Adaptive Management Framework for the Subbasin
 Preparation of and submittal of five-year updates to the GSP  Revisions to this MOA
 Subbasin-wide outreach
 Litigation costs for an attorney coordinating the GSAs for litigation filed against the entire Subbasin
 Costs for initial investigation by the Subbasin-wide GSP Consultant of a MT downward trend or MT exceedance across Subbasin boundary lines

6.5.b
Packet Pg. 92
Attachment: Resolution No. 2024-01 Exhibit A MOA DM Subbasin (Approve Resolution No. 2024-01 & 2024-02 Adopting SGMA Memo. & Special 3396734v1 / 21603.0005
RESOLUTION NO. 2024-02

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PATTERSON

ADOPTING THE SPECIAL PROJECT AGREEMENT FOR DEVELOPMENT OF A

SINGLE GROUNDWATER SUSTAINABILITY PLAN FOR THE DELTA-MENDOTA

SUBBASIN AND AUTHORIZING SIGNATURE THEREON
A. WHEREAS, in August 2014, the California Legislature passed, and in September 2014 the Governor signed, legislation creating the Sustainable Groundwater Management Act (“SGMA”) “to provide local groundwater sustainability agencies with the authority and technical and financial assistance necessary to sustainably manage groundwater” (Wat. Code, § 10720, (d)); and
B. WHEREAS, SGMA requires sustainable management through the development and implementation of a single or multiple coordinated groundwater sustainability plans (“GSPs”) covering a groundwater basin designated by the Department of Water Resources (“DWR”) as medium or high priority (Wat. Code, § 10727); and C. WHEREAS, the Delta-Mendota Subbasin (Basin Number 5-22.07, DWR Bulletin 118), within the San Joaquin Valley Groundwater Basin (“Subbasin”), has been designated as a high-priority, critically overdrafted basin by DWR; and D. WHEREAS, the Subbasin includes multiple groundwater sustainability agencies (each a “GSA” and collectively, the “GSAs”) that initially managed the Subbasin through the development and implementation of six different GSPs covering different portions of the Subbasin (each, a “GSP Group” and collectively the “GSP Groups”); and E. WHEREAS, the GSAs in the Subbasin now desire to develop and adopt one single GSP for the Subbasin to support sustainable management of the Subbasin in compliance with SGMA; and
F. WHEREAS, the City of Patterson GSA was formed to be an exclusive GSA for a portion of the Subbasin, and is part of the Northern GSP Group composed of the following GSAs: Patterson Irrigation District GSA; West Stanislaus Irrigation District GSA; DM-II GSA; and the North-Western GSA; and
G. WHEREAS, the City of Patterson GSA and the Northern GSP Group have agreed to obtain the coordinated access to the administrative and technical resources and services available through the San Luis & Delta-Mendota Water Authority (“SLDMWA”) to provide SGMA coordination services to said Members, and to provide the mechanisms to share the benefits and expenses of obtaining SLDMWA’s resources and services; and H. WHEREAS, Section 16 of the Activity Agreement provides that Activity Participants may enter into a Special Project Agreement to achieve any of the purposes or activities authorized by the Activity Agreement and to share in the expenses and costs of such activity; and

6.5.c
Packet Pg. 93
Attachment: Resolution No. 2024-02 for Adoption of the Special Project Agreement - Delta Mendota (Approve Resolution No. 2024-01 & 2024-02 3396734v1 / 21603.0005
I. WHEREAS, pursuant to that certain Delta-Mendota Subbasin Coordination Agreement effective December 12, 2018, entered into by all of the GSAs in the Subbasin, Members that are not Activity Participants, such as SS-MOA Participants, may enter into a cost sharing agreement with the SLDMWA for the performance of designated functions; and J. WHEREAS, the City of Patterson GSA, now desires to enter into that certain Special Project Agreement for Development of a Single Groundwater Sustainability Plan for the Delta-Mendota Subbasin (“SPA”) with the SLDMWA for the purposes of identifying a methodology for sharing single GSP development expenses from outside consultants, legal counsel, and SLDMWA staff, as described more particularly in the SPA.

NOW, THEREFORE, BE IT RESOLVED that the City Council for the City of Patterson finds as follows:

1. The facts stated in the recitals above are true and correct, and the City Council so finds and determines.

2. The City of Patterson and the City of Patterson GSA, hereby approve and adopt the Special Project Agreement for Development of a Single Groundwater Sustainability Plan for the Delta-Mendota Subbasin, in substantially the form attached hereto as Exhibit “A” and authorizes the executing officer and/or his designee to execute said SPA.

3. The City of Patterson and the City of Patterson GSA authorizes the executing officer and/or his designee and its legal counsel to take such other actions as may be reasonably necessary to deliver the signed SPA to the SLDMWA and implement the purpose of this Resolution.

PASSED, APPROVED, AND ADOPTED this 16th day of January 2024, by the following roll call vote:

AYES:

NOES:

EXCUSED:

APPROVED:
______________________________
Michael Clauzel
Mayor of the City of Patterson

6.5.c
Packet Pg. 94
Attachment: Resolution No. 2024-02 for Adoption of the Special Project Agreement - Delta Mendota (Approve Resolution No. 2024-01 & 2024-02 3396734v1 / 21603.0005
ATTEST:
________________________________
Aracely Alegre
City Clerk of the City of Patterson
I do hereby certify that the foregoing is a full, correct, and true copy of a resolution passed by the City Council of said City of Paterson, and Municipal Corporation of the County of Stanislaus, State of California, at a regular meeting held on the 16th day of January 2024 and further certified that the resolution is in full force and effect and has never been rescinded or modified.

DATED:
________________________________
City Clerk of the City of Patterson

6.5.c
Packet Pg. 95
Attachment: Resolution No. 2024-02 for Adoption of the Special Project Agreement - Delta Mendota (Approve Resolution No. 2024-01 & 2024-02 3357304v11 / 21603.0005

SAN LUIS & DELTA-MENDOTA WATER AUTHORITY

SUSTAINABLE GROUNDWATER MANAGEMENT ACT (SGMA)

DEVELOPMENT OF A SINGLE GROUNDWATER SUSTAINABILITY PLAN FOR

THE DELTA-MENDOTA SUBBASIN

SPECIAL PROJECT AGREEMENT
THIS SPECIAL PROJECT AGREEMENT (this “Special Project Agreement”) is entered into this 24th day of July, 2023 (the “Effective Date”), by and among (i) San Luis & DeltaMendota Water Authority (the “Authority”); and (ii) the “Special Project Participants” identified on Exhibit “A”, which is attached hereto and incorporated herein by this reference.

The Authority and the Special Project Participants may be collectively referred to herein as the “Parties” or individually as a “Party.”

RECITALS
WHEREAS, in order to efficiently coordinate among the large number of groundwater sustainability agencies (“GSAs”) in the Delta-Mendota Subbasin (“Subbasin”), the GSAs desire to develop and adopt one groundwater sustainability plan (“GSP”) for the Subbasin to support sustainable management of the Subbasin in compliance with the Sustainable Groundwater Management Act (“SGMA”); and
WHEREAS, the purpose of this Special Project Agreement is to provide the contractual basis for its signatories to utilize the resources of the Authority to allow for coordinated access to administrative resources, technical resources, and other services, and to provide mechanisms for sharing the benefits and expenses of obtaining such resources for the purpose of developing a single GSP for the Subbasin to comply with SGMA; and
WHEREAS, the Authority and several of the Special Project Participants—Del Puerto Water District (“DPWD”), Patterson Irrigation District (“PID”), West Stanislaus Irrigation District (“WSID”), Oak Flat Water District (“OFWD”), City of Patterson, Merced County, and Stanislaus County, are also parties to that certain Northern Delta-Mendota Region Sustainable Groundwater Management Act Services Activity Agreement, dated August 30, 2021, as amended (“Northern DM SGMA Activity Agreement”); and
WHEREAS, the Authority and several of the Special Project Participants—San Luis Water District (“SLWD”), Panoche Water District, Tranquillity Irrigation District (“TID”), Fresno Slough Water District (“FSWD”), Eagle Field Water District (“EFWD”), Pacheco Water District (“Pacheco WD”), Mercy Springs Water District (“MSWD”), Santa Nella County Water District (“SNCWD”), Fresno County, Merced County, Widren Water District (“Widren WD”), and Oro Loma Water District (“OLWD”), are also parties to that certain Central Delta-Mendota Region Sustainable Groundwater Management Act Services Activity Agreement, dated November 1, 2018, as amended (the “Central DM SGMA Activity Agreement”); and WHEREAS, like this Special Project Agreement, a purpose of the Northern DM SGMA Exhibit A-SPA

6.5.d
Packet Pg. 96
Attachment: Resolution No. 2024-02 Exhibit A SPA for Single GSP Development for D-M Subbasin (Approve Resolution No. 2024-01 & 2024-02 Delta-Mendota Subbasin Single GSP Development Project Special Project Agreement

Page 2 of 9 ends

3357304v11 / 21603.0005
Activity Agreement and the Central DM SGMA Activity Agreement (the “Activity Agreements”), is to provide a contractual basis for its participants to realize coordinated access to the administrative and technical resources of the Authority, and to provide a mechanism for sharing the benefits and expenses of obtaining such resources; and WHEREAS, Section 16 of each of the Activity Agreements provides that participants may enter into a Special Project Agreement to achieve any of the purposes or activities authorized by the Activity Agreement and to share in the expenses and costs of such activity; and WHEREAS, pursuant to that certain Delta-Mendota Subbasin Coordination Agreement effective December 12, 2018, entered into by all of the GSAs in the Delta-Mendota Subbasin, Parties that are not Activity Participants, as defined in the Activity Agreements, may enter into a cost sharing agreement with the Authority for the performance of designated functions; and WHEREAS, the Special Project Participants each desire to enter into this Special Project Agreement with the Authority for the purposes of identifying a methodology for sharing single GSP development expenses, consistent with the Coordination Agreement and as appropriate, the Activity Agreements, and pursuant to the terms described herein.

NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein, in the Coordination Agreement and Activity Agreements, and the above stated Recitals, which are deemed true and correct and incorporated herein, the Parties hereto agree as follows:

1. Title. The title of this special project is “Delta-Mendota Subbasin Single GSP Development Project” (the “Special Project”).

2. Funding Source. The Authority shall provide accounting and billing services to collect from the Special Project Participants in accordance with this Special Project Agreement, all applicable terms of the Coordination Agreement, and as appropriate, the Activity Agreements.

3. Funding Shares. Costs for single GSP development services provided by EKI Environment and Water, Inc. (EKI) will be divided by Special Project Participants based on shares approved by Coordination Committee members at the October 9, 2023 regular meeting of the Coordination Committee. The total approved funding amount for EKI’s services to develop the single GSP is one million four hundred one thousand fifty-two and no/100 dollars ($1,401,052.00).

Additional support and coordination will be provided by Baker, Manock & Jensen, PC and Authority staff with such costs to be split proportionally by all Special Project Participants in compliance with this Special Project Agreement.

4. Description. EKI will coordinate gathering and compiling the necessary information and documents to address DWR’s “Inadequate Determination of the Revised 2020 Groundwater Sustainability Plans Submitted for the San Joaquin Valley Basin – Delta-Mendota Subbasin” dated March 2, 2023, in the development of the Special Project. The Parties agree EKI shall serve as the lead for this Special Project, and other consultants employed by GSAs in the Subbasin shall assist by supplying EKI with requested information in as timely a manner as possible. Costs for the work of other GSA consultants shall be the sole responsibility of

6.5.d
Packet Pg. 97
Attachment: Resolution No. 2024-02 Exhibit A SPA for Single GSP Development for D-M Subbasin (Approve Resolution No. 2024-01 & 2024-02 Delta-Mendota Subbasin Single GSP Development Project Special Project Agreement

Page 3 of 9 ends

3357304v11 / 21603.0005
employing/contracting GSA.

5. Participation. The Authority will assist the Special Project Participants by soliciting and accepting a proposal from EKI. The Authority has previously entered into a master services agreement with EKI. The Authority will provide all administrative services to the Special Project Participants in accordance with the Coordination Agreement and as appropriate, the Activity Agreements. The Parties shall cooperate with each other to achieve the purposes of this Special Project Agreement.

6. Special Project Expense Share. The Special Project Participants shall pay, in shares as memorialized in Exhibit “B” attached hereto and incorporated herein by this reference, and as unanimously approved by all Coordination Committee members at the October 9, 2023 regular meeting, all of the expenses and costs of activities performed pursuant to this Special Project Agreement. The Special Project Participants agree that all expenses and costs incurred by the Authority under this Special Project Agreement are the expenses and costs of the Special Project Participants only, and not of the Authority or of any other party not participating in this Special Project.

7. Participation Obligations. The Special Project Participants shall hold the Authority, and all Authority members and other third-parties that are not participating in this Special Project Agreement, free and harmless from liability and shall indemnify each of them against any and all costs, losses, damages, claims and liabilities arising from performance of this Special Project Agreement.

8. Term and Termination. This Special Project Agreement shall commence upon execution by the Authority and all of the Special Project Participants, and remain in effect for the duration of the single GSP development process and performance of Special Project services. This Special Project Agreement shall terminate at the conclusion of implementation of the Special Project services pursuant to the submittal of a single GSP for the Delta-Mendota Subbasin to the State Water Resources Control Board.

9. Information Access. The Special Project Participants shall have reasonable access to all compiled data, draft documents, reports, records and other such information that is developed and submitted to the Authority as a part of the single GSP development.

10. Interpretation of Documents. As to matters addressed by this Special Project Agreement, in the event of any conflict or inconsistency between the terms of the Special Project Agreement and Coordination Agreement, or the terms of the Special Project Agreement and the Activity Agreements, this Special Project Agreement shall govern. All capitalized terms used herein and not otherwise defined shall have the meaning ascribed to them by the Coordination Agreement and/or Activity Agreements.

NOW, THEREFORE, the duly authorized undersigned representatives have executed this Special Project Agreement as of the Effective Date.

6.5.d
Packet Pg. 98
Attachment: Resolution No. 2024-02 Exhibit A SPA for Single GSP Development for D-M Subbasin (Approve Resolution No. 2024-01 & 2024-02 Delta-Mendota Subbasin Single GSP Development Project Special Project Agreement

Page 4 of 9 ends

3357304v11 / 21603.0005
IN WITNESS WHEREOF, the Parties have executed this Special Project Agreement as of the Effective Date.

6.5.d
Packet Pg. 99
Attachment: Resolution No. 2024-02 Exhibit A SPA for Single GSP Development for D-M Subbasin (Approve Resolution No. 2024-01 & 2024-02 Delta-Mendota Subbasin Single GSP Development Project Special Project Agreement

Page 5 of 9 ends

3357304v11 / 21603.0005
Dated: ________________________ CITY OF MENDOTA GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ CITY OF NEWMAN GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ CITY OF PATTERSON GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ COUNTY OF MADERA–3 GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ COUNTY OF MERCED DELTA-MENDOTA GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ DM II GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ FARMERS WATER DISTRICT GSA Print Name: __________________________
Print Title: ___________________________

6.5.d
Packet Pg. 100 Attachment: Resolution No. 2024-02 Exhibit A SPA for Single GSP Development for D-M Subbasin (Approve Resolution No. 2024-01 & 2024-02 Delta-Mendota Subbasin Single GSP Development Project Special Project Agreement

Page 6 of 9 ends

3357304v11 / 21603.0005
Dated: ________________________ FRESNO COUNTY MANAGEMENT AREA A GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ FRESNO COUNTY MANAGEMENT AREA B GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ GRASSLAND GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ NORTHWESTERN DELTA-MENDOTA GSA Print Name: __________________________
Print Title: ___________________________
___________________________________________
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ ORO LOMA WATER DISTRICT GSA Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ PATTERSON IRRIGATION DISTRICT GSA Print Name: __________________________
Print Title: ___________________________

6.5.d
Packet Pg. 101 Attachment: Resolution No. 2024-02 Exhibit A SPA for Single GSP Development for D-M Subbasin (Approve Resolution No. 2024-01 & 2024-02 Delta-Mendota Subbasin Single GSP Development Project Special Project Agreement

Page 7 of 9 ends

3357304v11 / 21603.0005
Dated: ________________________ SAN JOAQUIN RIVER EXCHANGE

CONTRACTORS WATER AUTHORITY GSA
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ TURNER ISLAND WATER DISTRICT–2 GSA Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ WEST STANISLAUS IRRIGATION DISTRICT GSA 1
Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ WIDREN WATER DISTRICT GSA Print Name: __________________________
Print Title: ___________________________
Dated: ________________________ SAN LUIS & DELTA-MENDOTA WATER

AUTHORITY
Print Name: __________________________
Print Title: ___________________________

6.5.d
Packet Pg. 102 Attachment: Resolution No. 2024-02 Exhibit A SPA for Single GSP Development for D-M Subbasin (Approve Resolution No. 2024-01 & 2024-02 Delta-Mendota Subbasin Single GSP Development Project Special Project Agreement

Page 8 of 9 ends

3357304v11 / 21603.0005
EXHIBIT “A”
Special Project Participants
Special Project Participants
1 Aliso Water District GSA
Aliso Water District GSA
2 Farmers Water District GSA
Farmers Water District GSA
3 Fresno County Management Area A and B GSAs
Group
Fresno County Management Area A GSA
Fresno County Management Area B GSA
4 Central Delta-Mendota GSAs Group
Central Delta-Mendota GSA
Oro Loma Water District GSA
Widren Water District GSA
5 Northern Delta-Mendota GSAs Group
City of Patterson GSA

DM-II GSA
Northwestern Delta-Mendota GSA
Patterson Irrigation District GSA
West Stanislaus Irrigation District GSA
6 Grassland GSAs Group
Grassland GSA
Merced County Delta-Mendota GSA
7 San Joaquin River Exchange Contractors GSAs
Group
San Joaquin River Exchange Contractors GSA

6.5.d
Packet Pg. 103 Attachment: Resolution No. 2024-02 Exhibit A SPA for Single GSP Development for D-M Subbasin (Approve Resolution No. 2024-01 & 2024-02 Delta-Mendota Subbasin Single GSP Development Project Special Project Agreement

Page 9 of 9 ends

3357304v11 / 21603.0005
EXHIBIT “B”
Cost-Sharing Allocation
GSA Group Acres Allocated
%
Scaled
Approach
Acreage
(%)
San Joaquin River Exchange Contractors GSA 291,069 16.70% $233,976 38.17% Central Delta-Mendota GSAs Group 163,787 16.70% $233,976 21.48% Northern Delta-Mendota GSAs Group 152,140 16.70% $233,976 19.95% Grassland GSAs Group 104,137 15.20% $212,960 13.66%
Aliso Water District GSA 26,636 12.70% $177,934 3.49%
Fresno County Management Area A and B
GSAs Group 22,519 11.00% $154,116 2.95%
Farmers Water District GSA 2,214 11.00% $154,116 0.29%
Total 762,502 100.00% $1,401,052

6.5.d
Packet Pg. 104 Attachment: Resolution No. 2024-02 Exhibit A SPA for Single GSP Development for D-M Subbasin (Approve Resolution No. 2024-01 & 2024-02 City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Jeffrey Frye, Interim Fire Chief
MEETING DATE: January 16, 2024
ITEM NO: 6.6
SUBJECT: Accept Donation of a Tiller Truck from Kern County to be used for Fire Department Training.

RECOMMENDATION
Motion to Accept Donation of a Tiller Truck from Kern County to be used for Fire Department Training.

BACKGROUND
The City of Patterson Fire Department received a Tractor-Drawn-Aerial apparatus “Tiller Truck” from Kern County on 11/29/2023, and the Fire Department would like to recognize Kern County for their donation of the Tiller Truck with a value of $5,000.

ANALYSIS
The Fire Department would like to recognize the donation of a tiller truck with a value of $5,000 from Kern County. The donated truck is a 1976 Seagrave Tractor Drawn Aerial that was originally purchased and used by the City of Los Angeles and then utilized by other fire departments as a training apparatus. The “Tiller” will be used to train Patterson Firefighters on how to drive and steer the rear wheels of this type of apparatus and become proficient at operating and maneuvering this type of vehicle so that when the new Tiller is delivered from Pierce Manufacturing in the 2 ½- 3 years, Fire personnel will be prepared to place it into service.

FISCAL IMPACT
The approximate fiscal impact for 2023-24 will be $3,000 for the towing cost, registration fees, and minimal vehicle supplies.

6.6 Packet Pg. 105

6.6.a
Packet Pg. 106 Attachment: Intent to Donate_Tiller Truck (Tiller Truck Donation from Kern County)

SUMMARY OF PROCEEDINGS

BOARD OF SUPERVISORS - COUNTY OF KERN
1115 Truxtun Avenue
Bakersfield, California
Regular Meeting
Tuesday, October 24, 2023
9:00 A.M.

BOARD RECONVENED
Supervisors: Peters, Scrivner, Flores, Couch, Perez
ROLL CALL: All Present
SALUTE TO FLAG - Led by Second District Supervisor Zack Scrivner NOTE: The vote is displayed in bold below each item. For example, Scrivner-Perez denotes Supervisor Scrivner made the motion and Supervisor Perez seconded the motion.

CONSENT AGENDA/OPPORTUNITY FOR PUBLIC COMMENT: ALL
ITEMS LISTED WITH A "CA" OR "C" WERE CONSIDERED TO BE
ROUTINE AND APPROVED BY ONE MOTION.

BOARD ACTION SHOWN IN CAPS

BOARD OF SUPERVISORS - PET OF THE WEEK

NICHOLAS CULLEN, DIRECTOR, ANIMAL SERVICES DEPARTMENT,

INTRODUCED OTTO, A ONE-YEAR-OLD MALE TERRIER MIX,

AVAILABLE FOR ADOPTION AT THE KERN COUNTY ANIMAL

SHELTER

RESOLUTIONS/PROCLAMATIONS
1) Proclaim November 2023 as National Adoption Awareness Month in Kern County - PROCLAIMED; MADE PRESENTATION TO LITO MORILLO,

DIRECTOR, DEPARTMENT OF HUMAN SERVICES, WHO

RECOGNIZED PARTNER AGENCY REPRESENTATIVES PRESENT

AND INTRODUCED ADOPTIVE PARENTS NICK AND RACHEL
MCLEAN; LITO MORILLO AND RACHEL MCLEAN, HEARD
Perez-Peters: All Ayes
Note: Members of the Board of Supervisors may have an interest in certain contracts that the Board considers where the member holds a position on a non-profit corporation that supports the functions of the County. Supervisors are assigned to these positions as part of annual committee assignments by the Chairman of the Board. These interests include, with the Supervisor holding the position, the following:

California State Association of Counties (Supervisors Peters and Scrivner); Community Action Partnership of Kern (Supervisor Flores); Kern County Network for Children (Supervisor Peters); Kern Economic Development Corporation (Supervisors Scrivner, Flores, and Peters); Southern California Water Committee (Supervisors Couch and Flores); Tobacco Funding Corporation, Kern County (Supervisors Scrivner and Flores); Kern County Foundation, Inc. (Supervisor Flores); and Kern Medical Center Foundation (Supervisors Flores and Scrivner).

6.6.b
Packet Pg. 107 Attachment: BOS Minutes - 10.24.23 (Tiller Truck Donation from Kern County) Summary of Proceedings AM Page 2
Board of Supervisors Regular Meeting – 9:00 A.M. 10/24/2023 NOTE: Supervisor Perez left the dais before consideration of Item No. 2 and returned during the presentation
2) Proclaim November as 2023 National Homeless Youth Awareness Month in Kern County - PROCLAIMED; MADE PRESENTATION TO GENNESSA

FISHER AND CYNTHIA LIRA-MARTINEZ, REPRESENTING

BAKERSFIELD KERN REGIONAL HOMELESS COLLABORATIVE
YOUTH ACTION BOARD; GENNESSA FISHER AND CYNTHIA LIRAMARTINEZ, HEARD Couch-Scrivner: 4 Ayes; 1 Absent - Perez

APPOINTMENTS
CA-3) Proposed increase in membership on the Workforce Development Board (WDB) from 28 to 29 members; approve WDB recommendations to change the member status of Alissa Reed from Business to Labor; approve the appointments of Mike Beaumont and Lizette Patterson as At-large Business Members, terms to expire December 31, 2026, and the appointment of Bryan Forrest, replacing John Adams, as At-large Workforce Representative - Labor and Apprenticeship Member, term to expire June 30, 2025 - APPROVED; MADE APPOINTMENTS
Peters-Perez: All Ayes
CA-4) Reappointment of Jeff Bowen as At-large Member to the Oak Grove Cemetery District, term to expire December 30, 2027 - MADE

REAPPOINTMENT
Peters-Perez: All Ayes
CA-5) Reappointment of Doris Duquette as Second District Member to the Commission on Aging, term to expire September 29, 2025 - MADE

REAPPOINTMENT
Peters-Perez: All Ayes
CA-6) Appointment of Tiara King as Second District Member to the Behavioral Health Board, term to expire December 31, 2025 - MADE APPOINTMENT Peters-Perez: All Ayes
CA-7) Appointment of Yovani Jimenez, replacing Rick Jhaj, as Fifth District Member to the Planning Commission, term to expire January 1, 2025 - CONTINUED TO TUESDAY, NOVEMBER 7, 2023 AT 9:00 A.M.

Peters-Perez: All Ayes

PUBLIC PRESENTATIONS
8) This portion of the meeting is reserved for persons to address the Board on any matter not on this agenda but under the jurisdiction of the Board. Board members may respond briefly to statements made or questions posed.

They may ask a question for clarification, make a referral to staff for factual information or request staff to report back to the Board at a later meeting.

Also, the Board may take action to direct the staff to place a matter of business on a future agenda. SPEAKERS ARE LIMITED TO TWO MINUTES. PLEASE STATE AND SPELL YOUR NAME BEFORE MAKING YOUR PRESENTATION. THANK YOU!

KELLY JAMES HEARD CONCERNING THE INDIGENT DEFENSE

PROGRAM THROUGH THE KERN COUNTY BAR ASSOCIATION
(Continue to Page 3)

6.6.b
Packet Pg. 108 Attachment: BOS Minutes - 10.24.23 (Tiller Truck Donation from Kern County) Summary of Proceedings AM Page 3
Board of Supervisors Regular Meeting – 9:00 A.M. 10/24/2023 (Continued from Page 2)

CHARLES SHINN, DENNIS MCLEAN AND RALPH ROBLES HEARD

REGARDING ELECTION BALLOT TABULATION SYSTEM AND SECURITY

CAMERA INSTALLATION AT ELECTION BALLOT DROP BOX LOCATIONS

DARREN BLY HEARD CONCERNING UNRESOLVED MEDICAL
COVERAGE ISSUES; CHIEF ADMINISTRATIVE OFFICER JAMES ZERVIS RESPONDED; SUPERVISORS COUCH AND PEREZ HEARD

BOARD MEMBER ANNOUNCEMENTS OR REPORTS
9) On their own initiative, Board members may make an announcement or a report on their own activities. They may ask a question for clarification, make a referral to staff or take action to have staff place a matter of business on a future agenda (Gov. Code Sec. 54954.2[a][2])

SUPERVISOR PEREZ PRESENTED A CERTIFICATE OF RECOGNITION

TO UCEDRAH OSBY FOR HER CONTRIBUTIONS AS FIFTH DISTRICT MEMBER TO THE PARKS AND RECREATION COMMISSION; UCEDRAH

OSBY HEARD

DEPARTMENTAL REQUESTS

AGING AND ADULT SERVICES
CA-10) Request for approval of mid-year capital asset acquisition of two steamers for Shafter and Kern River Valley senior nutrition centers, in an amount not to exceed $22,005 (Fiscal Impact: $22,005; State; Not Budgeted; Discretionary) - APPROVED; AUTHORIZED AUDITOR-CONTROLLER TO PROCESS THE

SPECIFIED BUDGETARY ADJUSTMENTS AND ACCOUNTING

TRANSACTIONS
Peters-Perez: All Ayes
CA-11) Proposed addition of one Technical Support Specialist II and one Technical Support Supervisor positions, effective November 4, 2023 (Fiscal Impact:
$266,913 [$240,222 Federal/State; $26,691 General Fund]; Not Budgeted; Discretionary) - APPROVED; REFERRED TO HUMAN RESOURCES

DIVISION TO AMEND THE DEPARTMENTAL POSITIONS AND SALARY

SCHEDULE
Peters-Perez: All Ayes
CA-12) Proposed Cooperative Agreement with California Department of Food and Agriculture for enforcement of cotton plow down and cotton pest host-free period regulations from November 1, 2023 through June 30, 2024, in an amount not to exceed $10,000 (Fiscal Impact: $10,000; State; Budgeted; Mandated) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN
AGREEMENT 577-2023
Peters-Perez: All Ayes
CA-13) Proposed retroactive Cooperative Agreement with California Department of Food and Agriculture for detection of Asian Citrus Psyllid from October 1, 2023 through September 30, 2024, in an amount not to exceed $495,000 (Fiscal Impact: $495,000; State; Budgeted; Mandated) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN AGREEMENT 578-2023
Peters-Perez: All Ayes
CA-14) Proposed retroactive Cooperative Agreement with California Department of Food and Agriculture for quarantine response and regulatory enforcement activities related to Asian Citrus Psyllid from October 1, 2023 through September 30, 2024, in an amount not to exceed $80,000 (Fiscal Impact:
$80,000; State; Budgeted; Mandated) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN AGREEMENT 579-2023
Peters-Perez: All Ayes

6.6.b
Packet Pg. 109 Attachment: BOS Minutes - 10.24.23 (Tiller Truck Donation from Kern County) Summary of Proceedings AM Page 4
Board of Supervisors Regular Meeting – 9:00 A.M. 10/24/2023 CA-15) Proposed retroactive Cooperative Agreement with California Department of Food and Agriculture for enforcement of California Organic Foods Act from July 1, 2023 through June 30, 2024, in an amount not to exceed $6,150 (Fiscal Impact: $6,150; State; Budgeted; Mandated) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN AGREEMENT 580-2023
Peters-Perez: All Ayes
CA-16) Proposed retroactive Cooperative Agreement with California Department of Food and Agriculture for Nursery Inspection Program from July 1, 2023 through June 30, 2024, in an amount not to exceed $72,490 (Fiscal Impact:
$72,490; State; Budgeted; Mandated) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN AGREEMENT 581-2023
Peters-Perez: All Ayes
CA-17) Proposed retroactive Cooperative Agreement with California Department of Food and Agriculture for controlling noxious and invasive weed populations from July 1, 2023 through June 30, 2025, in an amount not to exceed $42,421 (Fiscal Impact: $42,421; State; Budgeted; Mandated) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN AGREEMENT
582-2023
Peters-Perez: All Ayes
CA-18) Proposed retroactive Cooperative Agreement with California Department of Food and Agriculture for Certified Farmer’s Market Program inspections from July 1, 2023 through June 30, 2024, in an amount not to exceed $6,240 (Fiscal Impact: $6,240; State; Budgeted; Mandated) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN AGREEMENT 583-2023
Peters-Perez: All Ayes

AIRPORTS
CA-19) Request for approval of mid-year capital asset acquisition of a Penetration Aircraft Skin Trainer upgrade for Aircraft Rescue Fire Fighting Station at Meadows Field Airport, in an amount not to exceed $17,000 (Fiscal Impact:
$17,000; Airports Enterprise Fund; Not Budgeted; Discretionary) - APPROVED; AUTHORIZED AUDITOR-CONTROLLER TO PROCESS

THE SPECIFIED BUDGETARY ADJUSTMENTS AND ACCOUNTING

TRANSACTIONS
Peters-Perez: All Ayes
CA-20) Request for approval of mid-year capital asset acquisition of a carpet cleaning extractor to maintain flooring at William M. Thomas Domestic Terminal, in an amount not to exceed $28,000 (Fiscal Impact: $28,000; Airports Enterprise Fund; Budgeted; Discretionary) - APPROVED;

AUTHORIZED AUDITOR-CONTROLLER TO PROCESS THE SPECIFIED

BUDGETARY ADJUSTMENTS AND ACCOUNTING TRANSACTIONS
Peters-Perez: All Ayes
CA-21) Request to approve Consent to Assignment of Ground Lease Agreement 844-2012 from Wheeler L. Hubbell & Marilyn Hubbell to GEM Air, LLC at Meadows Field Airport (Fiscal Impact: None) - MADE FINDING THAT THE

ACTION IS EXEMPT FROM FURTHER CEQA REVIEW PER SECTION
15301 OF STATE CEQA GUIDELINES; APPROVED; AUTHORIZED
CHAIRMAN TO SIGN AGREEMENT 584-2023
Peters-Perez: All Ayes

6.6.b
Packet Pg. 110 Attachment: BOS Minutes - 10.24.23 (Tiller Truck Donation from Kern County) Summary of Proceedings AM Page 5
Board of Supervisors Regular Meeting – 9:00 A.M. 10/24/2023

ANIMAL SERVICES
CA-22) Proposed Agreement, containing non-standard terms and conditions, with Spectrum Reach for a 4-month multi-screen advertising campaign to promote pet adoptions and responsible pet ownership, effective October 24, 2023, in an amount not to exceed $6,000 (Fiscal Impact: $6,000; General Fund; Budgeted; Discretionary) - APPROVED; AUTHORIZED

DIRECTOR OF ANIMAL SERVICES TO SIGN
Peters-Perez: All Ayes

AUDITOR-CONTROLLER-COUNTY CLERK
CA-23) Proposed sole source software three-year renewal and change order with LeaseQuery, LLC, containing non-standard terms and conditions, for lease accounting software from April 22, 2024 through April 22, 2027, in an amount not to exceed $113,059 (Fiscal Impact: $113,059; General Fund; Budgeted; Discretionary) - APPROVED; AUTHORIZED PURCHASING

AGENT TO ISSUE PURCHASE ORDER
Peters-Perez: All Ayes

BEHAVIORAL HEALTH AND RECOVERY SERVICES
CA-24) Proposed Agreement with Pepperdine University to place psychology interns at Behavioral Health and Recovery Services facilities from October 24, 2023 through June 30, 2027 (Fiscal Impact: None) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN AGREEMENT 585-2023
Peters-Perez: All Ayes
CA-25) Proposed retroactive Agreement with Telecare Corporation to provide crisis stabilization services for mental health clients residing in Lake Isabella, Ridgecrest, Mojave and eastern Kern County from July 1, 2023 through June 30, 2024, in a total amount not to exceed $2,945,983 (Fiscal Impact:
$2,945,983; Realignment/FFP; Budgeted; Discretionary) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN AGREEMENT 586-2023
Peters-Perez: All Ayes
CA-26) Proposed retroactive Memorandum of Understanding (MOU) with California Department of State Hospitals and California Mental Health Services Authority to provide hospital beds for clients referred to State hospital facilities by the Department from October 1, 2023 through June 30, 2025 (Fiscal Impact: None) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN AGREEMENT 587-2023
Peters-Perez: All Ayes

CLERK OF THE BOARD
NOTE: Supervisor Perez left the dais prior to consideration of Item No. 27 and returned following the vote on the matter
27) Selection of California State Association of Counties (CSAC) Board of Directors Members for 2024 (Fiscal Impact: None) - SELECTED

SUPERVISOR LETICIA PEREZ AS DIRECTOR AND SUPERVISOR
PHILLIP PETERS AS ALTERNATE DIRECTOR; DIRECTED CLERK OF

THE BOARD TO PROVIDE NOTIFICATION TO CSAC
Peters-Couch: 4 Ayes; 1 Absent - Perez

6.6.b
Packet Pg. 111 Attachment: BOS Minutes - 10.24.23 (Tiller Truck Donation from Kern County) Summary of Proceedings AM Page 6
Board of Supervisors Regular Meeting – 9:00 A.M. 10/24/2023 CA-28) Proposed Resolution establishing the regular meeting dates of the Board of Supervisors for 2024 (Fiscal Impact: None) - APPROVED; ADOPTED RESOLUTION 2023-273
Peters-Perez: All Ayes
CA-29) Appointments in Lieu of Election for Landowner Voting District positions pursuant to Elections Code Section 10515 (Fiscal Impact: None) - MADE

APPOINTMENTS
Peters-Perez: All Ayes

COUNTY COUNSEL
CA-30) Requests from Behavioral Health and Recovery Services for authorization to destroy records no longer necessary or required for County purposes and eligible for destruction (Fiscal Impact: None) - APPROVED;

AUTHORIZED CHAIRMAN TO SIGN
Peters-Perez: All Ayes
CA-31) Requests from County Counsel for authorization to destroy records no longer necessary or required for County purposes and eligible for destruction (Fiscal Impact: None) - APPROVED; AUTHORIZED

CHAIRMAN TO SIGN
Peters-Perez: All Ayes
CA-32) Request from Employers’ Training Resource for authorization to destroy records no longer necessary or required for County purposes and eligible for destruction (Fiscal Impact: None) - APPROVED; AUTHORIZED

CHAIRMAN TO SIGN
Peters-Perez: All Ayes
CA-33) Request from Fire for authorization to destroy records no longer necessary or required for County purposes and eligible for destruction (Fiscal Impact:

None) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN
Peters-Perez: All Ayes
CA-34) Request from General Services for authorization to destroy records no longer necessary or required for County purposes and eligible for destruction (Fiscal Impact: None) - APPROVED; AUTHORIZED

CHAIRMAN TO SIGN
Peters-Perez: All Ayes
CA-35) Request from Grand Jury for authorization to destroy records no longer necessary or required for County purposes and eligible for destruction (Fiscal Impact: None) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN Peters-Perez: All Ayes
CA-36) Request from Probation for authorization to destroy records no longer necessary or required for County purposes and eligible for destruction (Fiscal Impact: None) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN Peters-Perez: All Ayes
CA-37) Requests from Risk Management for authorization to destroy records no longer necessary or required for County purposes and eligible for destruction (Fiscal Impact: None) - APPROVED; AUTHORIZED

CHAIRMAN TO SIGN
Peters-Perez: All Ayes

6.6.b
Packet Pg. 112 Attachment: BOS Minutes - 10.24.23 (Tiller Truck Donation from Kern County) Summary of Proceedings AM Page 7
Board of Supervisors Regular Meeting – 9:00 A.M. 10/24/2023

FIRE DEPARTMENT
CA-38) Request to extend local emergency due to Hurricane Hilary storm incident (Fiscal Impact: None) - APPROVED
Peters-Perez: All Ayes
CA-39) Request to donate surplus 1976 Seagrave Tiller Truck valued at $5,000 to the City of Patterson, California, Fire Department firefighter program (Fiscal Impact: None) - APPROVED
Peters-Perez: All Ayes
CA-40) Proposed Resolution approving successful application to the State Department of Forestry and Fire Protection (CAL FIRE) for the California Climate Investment Fire Prevention Grant Program in the amount of $3,282,318, with no County match, to implement the Fuel Break Maintenance Project from date of signature through March 13, 2029 (Fiscal Impact: $3,282,318; State Grant; Not Budgeted; Discretionary) - APPROVED; ADOPTED RESOLUTION 2023-274; AUTHORIZED FIRE

CHIEF TO EXECUTE GRANT AGREEMENT DOCUMENTS SUBJECT TO

APPROVAL AS TO FORM BY COUNTY COUNSEL
Peters-Perez: All Ayes

HUMAN SERVICES
NOTE: Supervisor Scrivner announced he would abstain from voting on Item Nos. 41 and 42 due to a conflict of interest related to a potential source of income to his spouse
CA-41) Proposed Amendment No. 1 to Agreement 348-2023 with Kern Community College District designating Social Service Worker liaison at Bakersfield College for exchange of information providing assistance to enrolled students of CalWORKs Program to modify the scope of services (Fiscal Impact: None) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN
AGREEMENT 588-2023
Peters-Perez: 4 Ayes; 1 Abstained - Scrivner
CA-42) Proposed sole source Agreement with Kern Community College District through Bakersfield College for resource family approval training from January 1, 2024 through December 31, 2027 (Fiscal Impact: None) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN AGREEMENT
589-2023
Peters-Perez: 4 Ayes; 1 Abstained - Scrivner
CA-43) Request approval of mid-year capital asset acquisition of new playground equipment for Jamison Children’s Center, in an amount not to exceed $13,000 (Fiscal Impact: $13,000; General Fund/Realignment; Not Budgeted; Discretionary) - APPROVED; AUTHORIZED AUDITORCONTROLLER TO PROCESS THE SPECIFIED BUDGETARY

ADJUSTMENTS AND ACCOUNTING TRANSACTIONS
Peters-Perez: All Ayes

LIBRARY
CA-44) Request approval to pay fees and membership under the San Joaquin Valley Library System Joint Powers Agreement for FY 2023-2024, in an amount not to exceed $502,388 (Fiscal Impact: $502,388; Budgeted; Discretionary) - APPROVED
Peters-Perez: All Ayes

6.6.b
Packet Pg. 113 Attachment: BOS Minutes - 10.24.23 (Tiller Truck Donation from Kern County) Summary of Proceedings AM Page 8
Board of Supervisors Regular Meeting – 9:00 A.M. 10/24/2023 CA-45) Request to appropriate unanticipated revenue in the amount of $9,000 from Stay and Play Project Funding for programming at three Library locations (Fiscal Impact: $9,000; Private Funds; Not Budgeted; Discretionary) - APPROVED; AUTHORIZED DIRECTOR OF LIBRARIES TO SIGN CLAIM

FORM AND RELATED DOCUMENTS SUBJECT TO APPROVAL AS TO
FORM BY COUNTY COUNSEL; AUTHORIZED AUDITOR-CONTROLLER

TO PROCESS THE SPECIFIED BUDGETARY ADJUSTMENTS AND

ACCOUNTING TRANSACTIONS
Peters-Perez: All Ayes
CA-46) Request to accept donation from the Kern County Library Foundation in the amount of $51,179 (Fiscal Impact: $51,179; Donation; Not Budgeted; Discretionary) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN

LETTER OF APPRECIATION
Peters-Perez: All Ayes
CA-47) Request for approval of mid-year capital asset acquisition of two digital microfilm scanners in an amount not to exceed $16,201 (Fiscal Impact:
$16,201; General Fund; Budgeted; Discretionary) - APPROVED;

AUTHORIZED AUDITOR-CONTROLLER TO PROCESS THE SPECIFIED

BUDGETARY ADJUSTMENTS AND ACCOUNTING TRANSACTIONS
Peters-Perez: All Ayes

PUBLIC HEALTH SERVICES
48) Presentation on the Child Death Review Team report from calendar year 2022 (Fiscal Impact: None) - HEARD PRESENTATION BY CHAD CASTO,

PUBLIC HEALTH PROGRAM SPECIALIST AND CHAIRMAN OF THE

CHILD DEATH REVIEW TEAM
CA-49) Request to purchase healthy snack and drink items for Health Officer clinic patients during Fiscal Year 2023-2024 in an amount not to exceed $1,000 (Fiscal Impact: $1,000; State/Federal; Budgeted; Discretionary) -

APPROVED
Peters-Perez: All Ayes
NOTE: Supervisor Scrivner announced he would abstain from voting on Item No. 50 due to a conflict of interest related to a potential source of income to his spouse
CA-50) Proposed retroactive Agreement with San Joaquin Community Hospital dba Adventist Health Bakersfield for immunization activities from July 1, 2023 through June 30, 2024, in an amount not to exceed $260,000 (Fiscal Impact: $260,000; State; Budgeted; Discretionary) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN AGREEMENT 590-2023
Peters-Perez: 4 Ayes; 1 Abstained - Scrivner
CA-51) Proposed retroactive Agreement with California Department of Public Health for AIDS Drug Assistance program from July 1, 2023 through June 30, 2027, in the estimated amount of $160,000 (Fiscal Impact: $160,000 Revenue [$40,000 FY 2023-2024]; State; Budgeted; Discretionary) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN AGREEMENT
591-2023
Peters-Perez: All Ayes

6.6.b
Packet Pg. 114 Attachment: BOS Minutes - 10.24.23 (Tiller Truck Donation from Kern County) Summary of Proceedings AM Page 9
Board of Supervisors Regular Meeting – 9:00 A.M. 10/24/2023 CA-52) Proposed retroactive Agreement with California Department of Public Health for Tobacco Prevention program from July 1, 2023 through June 30, 2024, in an amount not to exceed $503,861 (Fiscal Impact: $503,861 Revenue; State; Budgeted; Mandated) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN AGREEMENT 592-2023
Peters-Perez: All Ayes
CA-53) Proposed Amendment No. 1 to Agreement 172-2023 with California Department of Public Health for HIV Prevention Grant program, to extend the term from December 31, 2023 through May 31, 2024 (Fiscal Impact:

None) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN AGREEMENT 593-2023
Peters-Perez: All Ayes
CA-54) Request to purchase healthy lunches and beverages for staff assigned to work community influenza vaccination events on October 29, 2023 and November 17, 2023, in an amount not to exceed $2,500 (Fiscal Impact:
$2,500; General Fund; Budgeted; Discretionary) - APPROVED Peters-Perez: All Ayes
CA-55) Proposed addition of one Nurse Practitioner, one Vocational Nurse I/II, one Office Services Technician, one Public Health Program Specialist, and one Technical Support Engineer positions and concurrent deletion of one Technical Support Specialist I/II/III position, effective October 25, 2023, in an annual net cost of $562,756 (Fiscal Impact: $562,756; State; Not Budgeted; Discretionary) - APPROVED; REFERRED TO HUMAN

RESOURCES DIVISION TO AMEND THE DEPARTMENTAL POSITIONS

AND SALARY SCHEDULE
Peters-Perez: All Ayes

SHERIFF
CA-56) Proposed retroactive Amendment No. 3 to Agreement 245-2017 with The Regents of the University of California for medical screening services for employees assigned to Kern County High Intensity Drug Trafficking Area Task Force extending the term from July 1, 2023 through June 30, 2025, in an amount not to exceed $12,000 (Fiscal Impact: $12,000; Federal Grant; Budgeted; Discretionary) - APPROVED; AUTHORIZED CHAIRMAN TO SIGN AGREEMENT 594-2023
Peters-Perez: All Ayes
CA-57) Proposed addition of four Sheriff’s Background Investigator I/II positions, effective October 24, 2023 (Fiscal Impact: $503,056; Budgeted; Discretionary) - APPROVED; REFERRED TO HUMAN RESOURCES

DIVISION TO AMEND THE DEPARTMENTAL POSITIONS AND SALARY

SCHEDULE
Peters-Perez: All Ayes
CA-58) Retroactive unusual travel request for Aircraft Mechanic Carrie Certuche to attend MD Helicopter 369E maintenance training in Mesa, Arizona from October 22, 2023 through November 4, 2023, in an amount not to exceed $9,685 (Fiscal Impact: $9,685; Budgeted; Discretionary) - APPROVED Peters-Perez: All Ayes
CA-59) Final update on emergency repair of water well four at Lerdo Detention Facilities (Fiscal Impact: None) - RECEIVED AND FILED
Peters-Perez: All Ayes

6.6.b
Packet Pg. 115 Attachment: BOS Minutes - 10.24.23 (Tiller Truck Donation from Kern County) Summary of Proceedings AM Page 10
Board of Supervisors Regular Meeting – 9:00 A.M. 10/24/2023 CA-60) Request to approve sole source procurement and five-year standardization of Lenco Bearcat as the armored vehicle used by the Sheriff’s Office, in an amount not to exceed $402,895 (Fiscal Impact: $402,895; Budgeted; Discretionary) - APPROVED; AUTHORIZED PURCHASING AGENT TO

ISSUE PURCHASE ORDER
Peters-Perez: All Ayes

ADJOURNED TO CLOSED SESSION
Peters

CLOSED SESSION
(If public reporting is required by Government Code Section 54957.1 relating to the following matter(s), the public reporting of any action taken in closed session will be made at the beginning of the next session of the Board of Supervisors.)

COUNTY COUNSEL
61) CONFERENCE WITH LEGAL COUNSEL - FORMALLY INITIATED
LITIGATION (Government Code Section 54956.9(d)(1) and (g)) Name of case: Ana Bonilla, et al. v. County of Kern, et al., Kern County Superior Court Case Number BCV-23-100156-TMS - NO REPORTABLE ACTION TAKEN
62) CONFERENCE WITH LEGAL COUNSEL - FORMALLY INITIATED
LITIGATION (Government Code Section 54956.9(d)(1) and (g)) Name of case: James Morrison v. County of Kern, Workers’ Compensation Appeals Board case numbers ADJ11833102, ADJ15163410 - NO REPORTABLE

ACTION TAKEN
63) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Government Code Section 54956.9(d)(2) and (e)(2)) Number of cases:

One (1) Significant exposure to litigation in the opinion of the Board of Supervisors on the advice of legal counsel, based on: Facts and circumstances, including, but not limited to, an accident, disaster, incident, or transactional occurrence that might result in litigation against the County and that are known to a potential plaintiff or plaintiffs. Facts and circumstances are as follows: The filing of a workers’ compensation claim by Jason McKinley - WITHDRAWN
64) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Government Code Section 54956.9(d)(2) and (e)(5)) Number of cases:

One (1) Significant exposure to litigation in the opinion of the Board of Supervisors on the advice of legal counsel, based on: A statement made by a person outside an open and public meeting on a specific matter within the responsibility of the Board of Supervisors. A record of the statement is available for public inspection - NO REPORTABLE ACTION TAKEN 65) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Government Code Section 54956.9(d)(4)) Number of cases: One (1) Based on existing facts and circumstances, the Board of Supervisors has decided to initiate or is deciding whether to initiate litigation - NO

REPORTABLE ACTION TAKEN

6.6.b
Packet Pg. 116 Attachment: BOS Minutes - 10.24.23 (Tiller Truck Donation from Kern County) Summary of Proceedings AM Page 11
Board of Supervisors Regular Meeting – 9:00 A.M. 10/24/2023 66) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Government Code Section 54956.9(d)(2)(e)(1)) Number of cases: One (1) Significant exposure to litigation in the opinion of the Board of Supervisors on the advice of legal counsel, based on: Facts and circumstances that might result in litigation against the County but which the County believes are not yet known to a potential plaintiff or plaintiffs, which facts and circumstances need not be disclosed - NO REPORTABLE ACTION TAKEN
RECONVENED FROM CLOSED SESSION; RECESSED TO 2:00 P.M.
/s/ Kathleen Krause
Clerk of the Board
/s/ Jeff Flores
Chairman, Board of Supervisors

6.6.b
Packet Pg. 117 Attachment: BOS Minutes - 10.24.23 (Tiller Truck Donation from Kern County) November 29, 2023
Aaron Duncan
Fire Chief & Director of Emergency Services
Kern County Fire Department
5642 Victor Street
Bakersfield, CA 93308
Chief Duncan,
On behalf of the City of Patterson, I would like to take this opportunity to thank you for the 1976 Seagrave Tiller Truck VIN#E76046, Z4746 that your department donated to us. I am happy to inform you that we took delivery of the tiller truck today and our fire personnel are excited to start training with it.

The Patterson Fire Department has placed an order with Pierce Manufacturing for a new Tractor Drawn Aerial Quint apparatus that will hopefully be completed in the next few years. Your department’s donation will help enable our crews to become proficient with driving this type of apparatus so that when our new Truck arrives, they will be prepared to operate it. Please relay our gratitude to the Kern County Board of Supervisors for approving this donation.

Sincerely,
Jeff Frye,
Acting Fire Chief
City of Patterson
Fire Department
344 West Las Palmas Avenue
Patterson, California 95363
Main: (209) 895-8130
Fax: (209) 895-8139

6.6.c
Packet Pg. 118 Attachment: Kern County Fire Donation (Tiller Truck Donation from Kern County)

6.6.d
Packet Pg. 119 Attachment: Tiller Photo (Tiller Truck Donation from Kern County) City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Fernando Ulloa, City Engineer
MEETING DATE: January 16, 2024
ITEM NO: 6.7
SUBJECT: Adopt Resolution No. 2024-03, Approving a Retainer Consultant Services Agreement with Bellecci, Black Water Consulting Engineers, NorthStar Engineering Group, O’Dell Engineering, and Provost & Pritchard for General Engineering and Surveying Services for a term of three (3) years, and Authorizing the City Manager to Execute the Agreement.

RECOMMENDATION
Motion to Adopt Resolution No. 2024-03, Approving a Retainer Consultant Services Agreement with Bellecci, Black Water Consulting Engineers, NorthStar Engineering Group, O’Dell Engineering, and Provost & Pritchard for General Engineering and Surveying Services for a term of three (3) years, and Authorizing the City Manager to Execute the Agreement.

BACKGROUND
One of the primary tasks for the Engineering Services Department is the design and construction of the Capital Improvement Program (CIP). The current staffing of the Engineering Department only provides for limited design services. Therefore, it is necessary to contract for Civil Engineering and Surveying services for the design of various projects throughout the year.

In order to comply with California Government Code, Sections 4526-4529, the City is required to procure professional consultant services on the basis of demonstrated competence and professional qualifications, referred to as Qualifications Based Selection. This is especially important for our State and Federally Funded Projects. In the past, the Request for Proposals (RFP) process has been on a project by project basis and typically takes two to three months to complete.

6.7 Packet Pg. 120
The recent approvals of the Water, Sewer, Storm Master Plans, local funding through Measure L for our local roads, and State funding through SB-1 has allowed staff to properly plan the city’s CIP. In order to be more efficient and respond more quickly to the large number of projects, it is recommended to contract with several Consultants on a retainer basis in order to expedite the process. This will allow staff to react more quickly to the required timing of the planned projects and consult directly with the approved five (5) firms listed below.

ANALYSIS
The Request for Qualifications (RFQ) was advertised on ciplist.com, the city website and in the Patterson Irrigator. Nine proposals were received on October 26, 2023. The proposals were thoroughly reviewed using the categories of professional qualifications, local agency experience, staff competence/abilities, accessibility, responsiveness and RFQ quality.

Company__
Bellecci
Black Water Consulting Engineers
NorthStar Engineering Group
O’Dell Engineering
Provost & Pritchard
Based on the number of projects upcoming, it is recommended to contract with the five firms listed above.

For each project, a preliminary scope will be sent to five firms selected. The individual firm would then submit a scope, schedule, and price for the individual project and the City Engineer will make the final determination for each project and execute an amendment to the Retainer agreement to include the specific project. Each amendment will follow City guidelines for approval, contingent on the price associated with each individual project.

The agreements are for a three year term, with options to extend for two additional one year terms.

FISCAL IMPACT
The actual encumbrance will be issued via purchase order for each budgeted project. These projects to be completed are listed in the Budgets for the Capital Improvements.

6.7 Packet Pg. 121
1 1
2 RESOLUTION NO. 2024-03
3 4 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PATTERSON, 5 APPROVING A RETAINER FOR CONSULTING SERVICES AGREEMENT WITH 6 BELLECCI, BLACK WATER CONSULTING ENGINEERS, NORTHSTAR 7 ENGINEERING GROUP, O’DELL ENGINEERING, AND PROVOST & PRITCHARD 8 FOR GENERAL ENGINEERING AND SURVEYING SERVICES FOR A TERM OF 9 THREE YEARS
10 11 WHEREAS, the City of Patterson is required to procure professional consultant 12 services on the basis of demonstrated competence and professional qualifications, 13 referred to as Qualifications Based Selection; and
14 WHEREAS, the recent approvals of the Water, Sewer, Storm Master Plans, local 15 funding through Measure L, and State funding through SB1 will generate projects in each 16 of the following three years that will require General Engineering Services; and 17 WHEREAS, the five proposals that were submitted were thoroughly reviewed 18 and using categories of professional qualifications, local agency experience, staff 19 competence/abilities, accessibility, responsiveness; and 20 WHEREAS, for each project, a preliminary scope will be developed and sent to 21 the five firms selected. And firms will then submit a scope, schedule, and price for said 22 project; and
23 WHEREAS, the retainer agreements are for a three year term, with options to 24 extend for two additional one year terms.
25 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of 26 Patterson does hereby:
27 1. Approve the Retainer Consultant Services Agreement with Bellecci, Black Water 28 Consulting Engineers, NorthStar Engineering Group, O’Dell Engineering, and 29 Provost & Pritchard for General Engineering and Surveying Services for a term of 30 three years.
31 2. Authorizes the City Manager to execute the agreements.

6.7.a
Packet Pg. 122 Attachment: Resolution No. 2024-03 Retainer PSA Engineering (Adopt Resolution No. 2024-03, Approving a Retainer Consultant Services 2 1 The foregoing resolution was passed by the City Council at a regular meeting held on the 16
th 2 day of January 2024 _______________ who moved its adoption, which 3 motion was duly seconded by _________________, and the resolution adopted by 4 the following roll call vote:
5 AYES:
6 NOES:
7 EXCUSED:
8 9 APPROVED:
10 11 ________________________
12 Michael Clauzel
13 Mayor of the City of Patterson
14 ATTEST:
15 16 ___________________________
17 Aracely Alegre
18 City Clerk of the City of Patterson
19 20 I hereby certify that the foregoing is a full, correct and true copy of a resolution 21 passed by the City Council of the City of Patterson, a Municipal Corporation of the County of Stanislaus, State of California, at a regular meeting held on the 16 th 22 day of January
23 2024, and I further certify that said resolution is in full force and effect and has never been 24 rescinded or modified.
25 DATED:
26 27
28 ____________________________
29 City Clerk of the City of Patterson

6.7.a
Packet Pg. 123 Attachment: Resolution No. 2024-03 Retainer PSA Engineering (Adopt Resolution No. 2024-03, Approving a Retainer Consultant Services City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Fernando Ulloa, City Engineer
MEETING DATE: January 16, 2024
ITEM NO: 6.8
SUBJECT: Reject all bids for the Well #8 Tank Recoating Project and directing staff to re-advertise at a later date.

RECOMMENDATION
Motion to Reject all bids for the Well #8 Tank Recoating Project and directing staff to readvertise at a later date.

BACKGROUND
The Well #8 Tank Recoating Project consists of the preparation of surfaces, performance and completion of recoating all interior surfaces of a 1.3 MG water storage tank.

ANALYSIS
The Well #8 Tank Recoating Project design was completed in Fall 2024 and was subsequently advertised for construction. The Project was advertised on CIP List, the City’s website, and the Patterson Irrigator Newspaper. Although there was ample time allowed and there were multiple contractors on the plan holder’s list, the City only received two bids. The two bids received were from Euro Style Management and Farr Construction Corp. Unfortunately, the two bids had a difference of almost $900,000 and subsequently the low bidder, Euro Style Management, requested to withdraw their bid.

The Engineer’s Estimate for construction was expected to be around $348,000. The bid from Euro Style Management is $565,000 and the bid from Farr Construction Corp is $1,478,618.00.

The bid construction cost is substantially over the Engineer’s Estimate and the difference in the bid proposals needs to be evaluated.

6.8 Packet Pg. 124
It is staff’s recommendation that the City Council reject all bids per bidding regulations. This will enable staff to restructure the project bid documents and review re-bidding options to increase the number of potential bidders. Staff is currently reviewing bid documents and determining to re-bid the project in Summer 2024. This should allow the chance of potential bidders to bid the project early in the construction season and bring the cost of the construction within reasonable price through competitive bidding.

FISCAL IMPACT
There is no Fiscal Impact at this point.

6.8 Packet Pg. 125
TO:

FROM:

BY:

WEST PATTERSON FINANCING AUTHORITY

AGENDA REPORT
Chair Clauzel and Members of the West Patterson Financing Authority Ken Irwin, Executive Director
Jennifer Riedeman, Finance Director
MEETING DATE: January 16, 2024
ITEM NO: 7.1
SUBJECT: Adopt Resolution No. 2024-01 Authorizing the Issuance of Special Tax Bonds for and on behalf of the West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson), approving and directing the execution of Supplement No. 1 to Fiscal Agent Agreement, approving the form of Preliminary Official Statement, approving sale of such bonds, approving other related documents and actions, and authorize the Finance Department to make the necessary budget adjustments.

RECOMMENDATION
Motion to Adopt Resolution No. 2024-01 Authorizing the Issuance of Special Tax Bonds for and on behalf of the West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson), approving and directing the execution of Supplement No. 1 to Fiscal Agent Agreement, approving the form of Preliminary Official Statement, approving sale of such bonds, approving other related documents and actions, and authorize the Finance Department to make the necessary budget adjustments.

ALTERNATIVE ACTIONS
Although the Board is under no express obligation to adopt the attached resolution, issuance of the 2024 Bonds will facilitate the City’s ability to invest in infrastructure improvements, such as the City’s Public Safety Center.

BACKGROUND
The Mello-Roos Community Facilities Act of 1982 (Gov. Code § 53311 et seq, the “CFD Act”)

7.1 Packet Pg. 126
was adopted by the State of California as a method for financing infrastructure improvements, public services and fees associated with new development. Special taxes provide an additional funding source for the construction and acquisition of public infrastructure, funding for the ongoing provision of public services, funding for the ongoing maintenance of public infrastructure and may be used to accelerate the payment of fees. Since its adoption, local jurisdictions throughout California have utilized the CFD Act to issue bonds, the repayment of which comes from the special taxes paid by property owners on the property tax bill each year.

The West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson) (“CFD 2018-1”) was formed in 2018. To date CFD 2018-1 has issued one series of special tax bonds in 2021 in the amount of $4,465,000 (“2021 Bonds”). The attached resolution authorizes the issuance and sale of a second series of special tax bonds (the “2024 Bonds”) on parity with the 2021 Bonds. Parity means the bondholders for each series have an equal right to the special taxes collected each year.

ANALYSIS
The attached resolution authorizes the issuance of special tax bonds in an aggregate principal amount not to exceed $12,000,000. This figure represents the maximum amount authorized by the Board for this bond issuance; the actual bond issuance will depend on bond market conditions, the appraisal report and other factors, and is expected to be less than the maximum $12,000,000.

Currently there are 472 properties which are expected to be levied a special tax within CFD 2018-1 for Fiscal Year 2024-25. These consist of 325 individual homeowners, 67 lots owned by KB Home North Bay LLC, 44 Lots owned by K. Hovnanian and 36 multifamily properties owned by Trivo LLC, of which 9 are finished, 3 are under construction and the remaining 24 are in the planning stages. Of the 472 properties, 325 are in the hands of individual homeowners so CFD 2018-1 is considered 72% developed.

The value-to-lien ratio is the total of the assessed and appraised value of the taxable property within CFD 2018-1 vs. the total of the outstanding principal of the 2021 Bonds and the proposed 2024 Bonds. Bond investors use this measure as one of the metrics when determining credit quality. The value-to-lien ratio is expected to be approximately 13:1. Value-to-lien ratios ranging from 3:1 to 5:1 generally reflect an early-stage development while values of more than 10:1 reflect a well-diversified project with a combination of individual homeowners (72%) and developer owned properties (28%).

The 2024 Bonds are expected to be issued as non-rated with a final term of 30 years. The 2024 Bonds are expected to be issued in the amount of $10,645,000 with interest rates at 5.00% with yields ranging from 3.35% (2025) to 5.13% (2054). Debt service coverage from maximum special taxes is expected to be just above 1.10x each year. It is also anticipated that a reserve fund will be funded from the proceeds of the 2024 Bonds on parity with the reserve fund from the 2021 Bonds, when combined, equals 1.25 times average annual debt service. The reserve fund serves as extra protection to investors in the event of significant delinquencies or payment disruption. Currently it is estimated that the costs of issuance will be $345,000 and the Underwriter will charge an underwriter’s discount in the amount of $96,550.15 or 0.907% of the

7.1 Packet Pg. 127
estimated par amount of $10,645,000. The underwriter’s discount is based on the percentage of the amount issued. The expected proceeds of the bonds are $9,352,120, a portion of which ($5,000,000) is to be sent to Patterson Unified School District and the balance applied to projects on authorized facilities.

In connection with the issuance and sale of the 2024 Bonds, the Resolution provides the following:
(1) Authorize the Board’s authorized officers to execute Supplement No. 1 to Fiscal Agent Agreement, in consultation with bond counsel. Supplement No. 1 to Fiscal Agent Agreement provides the terms of the 2024 Bonds, including provisions for security and payment of the 2024 Bonds. The Fiscal Agent Agreement for the 2021 Bonds established the Bank of New York Mellon Trust Company as Fiscal Agent for the 2021 Bonds. Subsequently the Fiscal Agent duties have been transferred to U.S. Bank National Association (“U.S. Bank”) as Fiscal Agent for both the 2021 Bonds and the 2024 Bonds. U.S. Bank will be requested to authenticate the 2024 Bonds and deliver them to the underwriter in accordance with instructions provided in the Bond Purchase Agreement.
(2) Appoint Hilltop Securities as the underwriter (“Underwriter”) of the bonds and direct the Board’s authorized officers to negotiate a Bond Purchase Agreement with the Underwriter.

The Bond Purchase Agreement, when executed, will reflect the final interest rates, yields and prices of the various maturities of the 2024 Bonds sold to investors. (3) Approve and authorize execution of an Official Statement and Continuing Disclosure Agreement. The official statement is the primary document used by the Underwriter to market the bonds to investors. The official statement describes 2024 Bonds in detail and all the information about CFD 2018-1 used by investors to make an informed purchase decision. The official statement is deemed final pursuant to Rule 15c-2-12 under the Securities Exchange Act of 1934. The only permitted items to be excluded from the draft are data and tables related to final pricing information for the 2024 Bonds. The Continuing Disclosure Agreement, included as an attachment to the Official Statement, describes covenants of the Authority to provide ongoing disclosure to investors in the form of an annual report due by April 1 each year and posted to the electronic platform known as the Electronic Municipal Market Access system (“EMMA”). In addition, and from time-to-time, the Authority covenants to provide notices of certain listed events, if and to the extent they occur to EMMA.
(4) Covenant that the Authority will diligently pursue foreclosures for any delinquent special taxes, as required by Supplement No. 1 to Fiscal Agent Agreement and the Fiscal Agent Agreement. This will ensure that the Authority does not default on its financial obligation to repay bonds issued in connection with CFD 2018-1.
(5) Authorize the Board’s authorized officers to take all actions necessary to complete the issuance and delivery of the bonds.

Should the City Council / Authority Board approve the 2024 Bonds tonight, the bonds are expected to be sold on Tuesday January 30th and Wednesday January 31st. Closing is anticipated to occur on Wednesday February 14th.

7.1 Packet Pg. 128

FISCAL IMPACT
Good Faith Estimates
California Government Code Section 5852.1 requires that the Authority disclose specified information obtained as good faith estimates from an underwriter or municipal advisor prior to authorization of the issuance of the 2024 Bonds. The Authority has received such information from the Underwriter which is set forth below:
(1) Name of Underwriter: Hilltop Securities
(2) City Council Meeting Date: January 16, 2024
(3) Name of Bond Issue: West Patterson Financing Authority, Community Facilities District No. 2018-1 (Villages of Patterson), Special Tax Bonds, Series 2024 4) The Underwriter has provided to the Authority and the City the following required good faith estimates relating to the 2024 Bonds:
a) The true interest cost of the 2024 Bonds, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the new issue of bonds: 5.079156%. b) The finance charge of the 2024 Bonds, which means the sum of all fees and charges paid to third parties: $441,550.15 which includes both the underwriter’s discount in the estimated amount of $96,550.15 and costs of issuance in the estimated amount of $345,000.
c) The amount of proceeds received by the public body for sale of the 2024 Bonds less the finance charge of the 2024 Bonds described in subparagraph b) and less any reserves or capitalized interest paid or funded with proceeds of the: $9,352,119.69. d) The total payment amount, which means the sum total of all payments the public body will make to pay debt service on the 2024 Bonds (which total payment amount is calculated to the final maturity of the 2024 Bonds): $23,145,759.03.

The foregoing estimates constitute good faith estimates only. The actual principal amount of the 2024 Bonds issued and sold, the true interest cost thereof, the finance charges thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates due to a variety of factors. The actual interest rates borne by the 2024 Bonds and the actual amortization of the 2024 Bonds will depend on market interest rates at the time of sale thereof. Market interest rates are affected by economic and other factors beyond the control of the Authority.

ATTACHMENTS

7.1 Packet Pg. 129

1. Resolution No. 2024-1 Authorizing the Issuance of Special Tax Bonds for and on behalf of the West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson), approving and directing the execution of Supplement No. 1 to Fiscal Agent Agreement, approving the form of Preliminary Official Statement, approving sale of such bonds, and approving other related documents and actions.

2. Supplement No. 1 to Fiscal Agent Agreement

3. Official Statement

4. Bond Purchase Agreement

5. Presentation

7.1 Packet Pg. 130

WEST PATTERSON FINANCING AUTHORITY
RESOLUTION NO. 2024-01

RESOLUTION AUTHORIZING THE ISSUANCE OF SPECIAL TAX BONDS

FOR AND ON BEHALF OF THE WEST PATTERSON FINANCING
AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 2018-1 (VILLAGES OF

PATTERSON), APPROVING AND DIRECTING THE EXECUTION OF
SUPPLEMENT NO. 1 TO FISCAL AGENT AGREEMENT, APPROVING THE

FORM OF PRELIMINARY OFFICIAL STATEMENT, APPROVING SALE OF

SUCH BONDS, AND APPROVING OTHER RELATED DOCUMENTS AND

ACTIONS
RESOLVED by the Board of Directors (the “Board”) of the West Patterson Financing Authority (the “Authority”), Stanislaus County, State of California, that:

WHEREAS, this Board has conducted proceedings under and pursuant to the MelloRoos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code (the “Act”), to form the West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson) (the “District”), to authorize the levy of special taxes upon the land within the District, and to issue bonds secured by said special taxes for the purpose of providing moneys for the construction and acquisition of authorized improvements for the District; and WHEREAS, the Board, as legislative body of the District, previously authorized the issuance of special tax bonds of the Authority for the District in the maximum aggregate principal amount of not to exceed $90,000,000 (the “Bond Authorization”); and WHEREAS, the Authority previously issued for and on behalf of the District, the West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson) Special Tax Bonds, Series 2021 (the “2021 Bonds”), in the initial principal amount of $4,465,000, which 2021 Bonds constituted the first series of bonds issued pursuant to the Bond Authorization; and
WHEREAS, Authority now desires to issue the second series of the special tax bonds pursuant to the Bond Authorization, as described in more detail herein (the “Bonds”); and WHEREAS, there has been submitted to the Board a Supplemental Agreement No. 1 to Fiscal Agent Agreement (the “Supplemental Agreement”), which will supplement and amend the Fiscal Agent Agreement, dated as of October 1, 2021 (as so supplemented, the “Fiscal Agent Agreement”), between the Authority and U.S. Bank Trust Company, National Association, as successor fiscal agent, providing for the issuance of the Bonds of the Authority for the District, and the Board, with the aid of Authority staff, has reviewed the Supplemental Agreement and found it to be in proper order, and now desires to approve the Supplemental Agreement and the issuance of the Bonds; and
WHEREAS, the Authority proposes to sell the Bonds to Hilltop Securities, Inc., as underwriter (the “Underwriter”), pursuant to the terms of a Bond Purchase Agreement by and between the Authority and the Underwriter, and the Underwriter proposes to offer the Bonds to the investing public by means of a Preliminary Official Statement, and the Board, with the aid of

7.1.a
Packet Pg. 131 Attachment: West Patterson Financing Authority Resolution No. 2024-01 Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024- - 2 -
Authority staff, has reviewed the Bond Purchase Agreement and the Preliminary Official Statement and found them to be in proper order, and now desires to approve said documents; and
WHEREAS, all conditions, things and acts required to exist, to have happened and to have been performed precedent to and in the issuance of the Bonds as contemplated by this Resolution and the documents referred to herein exist, have happened and have been performed in due time, form and manner as required by the laws of the State of California, including the Act.

NOW THEREFORE BE IT RESOLVED as follows:

1. Recitals. The foregoing recitals are all true and correct.

2. Findings. This Board finds and determines that it is prudent in the management and development of land in the Authority and the District to issue the Bonds, secured on parity with the 2021 Bonds, for the purpose of providing moneys for the construction and acquisition of authorized improvements for the District.

3. Law Applicable. For the purposes of these proceedings in and for the District, the Act shall be the authority for the issuance of the Bonds.

4. Bonds Authorized. Pursuant to the Act, this Resolution and the Fiscal Agent Agreement, special tax bonds of the Authority for the District designated as “West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson) Special Tax Bonds, Series 2024” in an aggregate principal amount not to exceed $12,000,000 are hereby authorized to be issued. The Bonds shall be executed in the form set forth in and otherwise as provided in the Fiscal Agent Agreement.

The Bonds shall not be issued unless the value of the real property within the District subject to the special tax to pay debt service on the Bonds, based on assessed values and/or an appraisal by an independent appraiser hired by the Authority for the purpose of determining such value, is at least three (3) times the proposed principal amount of the outstanding bonds plus the Bonds proposed to be issued and secured by a special tax levied pursuant to the Act on property within the District.

5. Supplemental Agreement. The Board hereby approves the Supplemental Agreement in the form presented to the Board at this meeting. The Executive Director, Treasurer or such other person or persons as any of them may designate (each, an “Authorized Officer”), each acting alone or together with any other Authorized Officer, are each hereby authorized and directed to execute the Supplemental Agreement, in such form, together with any additions thereto or changes therein deemed necessary or advisable by the Authorized Officer executing such document upon consultation with Jones Hall, A Professional Law Corporation, as bond counsel to the Authority (“Bond Counsel”). The proceeds of the Bonds shall be applied by the Authority for the purposes and in the amounts as set forth in the Supplemental Agreement. The Board hereby authorizes the delivery and performance by the Authority of the Supplemental Agreement and the Fiscal Agent Agreement.

6. Covenant to Foreclose. The Authority hereby covenants, for the benefit of the owners of the Bonds, to commence and diligently pursue to completion any foreclosure action regarding delinquent installments of any amount levied as a special tax for the payment of

7.1.a
Packet Pg. 132 Attachment: West Patterson Financing Authority Resolution No. 2024-01 Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024- - 3 -
interest or principal of the Bonds, said foreclosure action to be commenced and pursued as more completely set forth in the Fiscal Agent Agreement.

7. Approval of Official Statement and Continuing Disclosure Undertaking.

The Board hereby approves the Preliminary Official Statement with respect to the Bonds, in substantially the form on file with the Secretary. Distribution of the Preliminary Official Statement by the Authority and the Underwriter is hereby approved, and, prior to the distribution of the Preliminary Official Statement, and each Authorized Officer, each acting alone or together with any other Authorized Officer, is authorized and directed, on behalf of the Authority, to deem the Preliminary Official Statement “final” pursuant to Rule 15c2-12 under the Securities Exchange Act of 1934 (the “Rule”). The execution of the final Official Statement, which shall include such changes and additions thereto deemed advisable by the Authorized Officer executing the same, and such information permitted to be excluded from the Preliminary Official Statement pursuant to the Rule, is hereby approved for delivery to the purchasers of the Bonds, and each Authorized Officer, each acting alone or together with any other Authorized Officer, is authorized and directed to execute and deliver the final Official Statement for and on behalf of the Authority, to deliver to the Underwriter a certificate with respect to the information set forth therein and to deliver to the Underwriter a continuing disclosure undertaking, the form of which is included as part of the Preliminary Official Statement, in substantially such form, together with such changes and additions thereto deemed advisable by the Authorized Officer executing the same.

8. Approval of Bond Purchase Agreement. The Board hereby approves the Bond Purchase Agreement between the Authority and the Underwriter, in substantially the form on file with the Secretary; provided, that the aggregate principal amount of Bonds shall not exceed $12,000,000 or result in an underwriter’s discount in excess of 1.00%, or a true interest cost in excess of 6.00%. Subject to the foregoing parameters, an Authorized Officer is hereby authorized and directed to execute the Bond Purchase Agreement in substantially the form on file with the Secretary, together with such changes and additions thereto deemed advisable by the Authorized Officer executing the same. The Board hereby finds and determines that the sale of the Bonds at negotiated sale as contemplated by the Bond Purchase Agreement will result in a lower overall cost.

9. Actions Authorized. All actions heretofore taken by the officers, employees and agents of the Authority with respect to the establishment of the District and the sale and issuance of the Bonds are hereby approved, confirmed and ratified, and the Authorized Officers of the Authority are hereby authorized and directed to do any and all things and take any and all actions and execute any and all certificates, agreements and other documents, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Bonds in accordance with this resolution, and any certificate, agreement, and other document described in the documents herein approved. All actions to be taken by a specified Authorized Officer as specified herein, may be taken by the Authorized Officer or any designee, with the same force and effect as if taken by such Authorized Officer.

10. Effective Date. This Resolution shall take effect upon its adoption. * * * * *

7.1.a
Packet Pg. 133 Attachment: West Patterson Financing Authority Resolution No. 2024-01 Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024- - 4 -
PASSED AND ADOPTED by the Board of Directors of the West Patterson Financing Authority on the 16th day of January 2024, by the following roll call vote:

AYES:

NOES:

EXCUSED:
__________________________________
Michael Clauzel, Chair
ATTEST:

Aracely Alegre, Secretary
I hereby certify that the foregoing is a full, correct and true copy of a resolution passed by the West Patterson Financing Authority Board of Directors of the City of Patterson, a Municipal Corporation of the County of Stanislaus, State of California, at a meeting held on the 16 th day of
January 2024, and I further certify that said resolution is in full force and effect and has never been rescinded or modified.

DATED:
____________________________________
Secretary of the West Patterson Financing
Authority Board of Directors of the City of
Patterson

7.1.a
Packet Pg. 134 Attachment: West Patterson Financing Authority Resolution No. 2024-01 Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024- Jones Hall Draft of Dec. 28, 2023
SUPPLEMENTAL AGREEMENT NO. 1 TO

FISCAL AGENT AGREEMENT
by and between

WEST PATTERSON FINANCING AUTHORITY
and
U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION,
as Fiscal Agent
Dated as of February 1, 2024
Relating to:
$___________
West Patterson Financing Authority
Community Facilities District No. 2018-1 (Villages of Patterson) Special Tax Bonds, Series 2024

7.1.b
Packet Pg. 135 Attachment: 2 Supp FAA No. 1 - Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special -iTABLE OF CONTENTS
SECTION 1. Supplement to Original Fiscal Agent Agreement................................................................ 2

ARTICLE X
2024 BONDS
Section 10.01. Definitions ........................................................................................................ 2 Section 10.02. Authorization of 2024 Bonds ........................................................................... 3 Section 10.03. Terms of 2024 Bonds ...................................................................................... 4 Section 10.04. Redemption of 2024 Bonds ............................................................................. 4 Section 10.05. Form of 2024 Bonds; Authentication and Delivery .......................................... 6 Section 10.06. Application of Proceeds of Sale of 2024 Bonds .............................................. 7 Section 10.07. 2024 Costs of Issuance Fund.......................................................................... 7 Section 10.08. Security for 2024 Bonds .................................................................................. 8 Section 10.09. Effect of this Article X ...................................................................................... 8 SECTION 2. Attachment of Exhibit C ...................................................................................................... 8 SECTION 3. Additional Amendments to Original Fiscal Agent Agreement ............................................. 8 SECTION 4. Partial Invalidity ................................................................................................................... 9 SECTION 5. Execution in Counterparts................................................................................................. 10 SECTION 6. Governing Law.................................................................................................................. 10 EXHIBIT A - FORM OF 2024 BONDS

7.1.b
Packet Pg. 136 Attachment: 2 Supp FAA No. 1 - Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special -1-
SUPPLEMENTAL AGREEMENT NO. 1 TO FISCAL AGENT AGREEMENT
THIS SUPPLEMENTAL AGREEMENT NO. 1 TO FISCAL AGENT AGREEMENT (this “Supplemental Agreement No. 1” or “Agreement”), dated as of February 1, 2024, is by and between the WEST PATTERSON FINANCING AUTHORITY, a joint exercise of powers agency, organized and existing under and by virtue of the Constitution and laws of the State of California (the “Authority”) for and on behalf of the West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson) (the “District”), and U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION (the “Fiscal Agent”), as successor fiscal agent to THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., under a Fiscal Agent Agreement, dated as of October 1, 2021 (the “Original Fiscal Agent Agreement”) by and between the Fiscal Agent and the Authority.

R E C I T A L S :

WHEREAS, the Board of Directors of the Authority has formed the District under the provisions of the Mello-Roos Community Facilities Act of 1982, as amended (constituting Section 53311 et seq. of the California Government Code) (the “Act”); and WHEREAS, the Board of Directors, as the legislative body of the District, is authorized under the Act to levy special taxes to pay for the costs of facilities within the District and to authorize the issuance of bonds secured by said special taxes under the Act; and WHEREAS, the Council, as legislative body of the District, previously authorized the issuance of special tax bonds of the Authority for the District in the maximum aggregate principal amount of not to exceed $90,000,000 (the “Bond Authorization”); and WHEREAS, pursuant to the provisions of the Act and the Original Fiscal Agent Agreement, the Authority previously issued, for and on behalf of the District, $4,465,000 initial principal amount of West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson) Special Tax Bonds, Series 2021 (the “2021 Bonds”) for the purpose of financing various public improvements authorized to be funded by the District, which 2021 Bonds constituted the first series of bonds issued pursuant to the Bond Authorization; and WHEREAS, Section 5.17 of the Original Fiscal Agent Agreement authorizes the issuance by Supplemental Agreement of Additional Bonds (as such terms are defined in the Original Fiscal Agent Agreement) secured under the Original Fiscal Agent Agreement on parity with the 2021 Bonds; and
WHEREAS, after due investigation and deliberation the Authority has determined that it is in the interests of the Authority and the District at this time for the Authority, for and on behalf of the District, to provide for the issuance of West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson) Special Tax Bonds, Series 2024 in the initial aggregate principal amount of $___________ (the “2024 Bonds”), to provide moneys needed to construct and acquire the facilities necessary for development of property within the City of Patterson; and
WHEREAS, this Supplemental Agreement No. 1 is a “Supplemental Agreement” as defined in Section 1.03 of the Original Fiscal Agent Agreement and the 2024 Bonds are “Additional Bonds” as defined in Section 1.03 of the Original Fiscal Agent Agreement and

7.1.b
Packet Pg. 137 Attachment: 2 Supp FAA No. 1 - Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special -2-
secured under the Original Fiscal Agent Agreement, as amended and supplemented by this Supplemental Agreement No. 1, on parity with the 2021 Bonds; WHEREAS, the Authority and the Fiscal Agent desire to enter into this Supplemental Agreement No. 1 pursuant to Sections 5.17 of the Original Fiscal Agent Agreement and to provide for the issuance of the 2024 Bonds;
WHEREAS, to provide for the issuance of the 2024 Bonds, it is necessary to supplement and amend the Original Fiscal Agent Agreement, as more particularly provided herein, as authorized by Sections 5.17 and 8.05 of the Original Fiscal Agent Agreement; and WHEREAS, the Authority has determined that all acts and proceedings required by law necessary to make the 2024 Bonds, when executed by the Authority for the District, authenticated and delivered by the Fiscal Agent and duly issued, the valid, binding and legal special obligations of the Authority for the District, and to constitute the Original Fiscal Agent Agreement, as amended and supplemented by this Supplemental Agreement No. 1, a valid and binding agreement for the uses and purposes herein and therein set forth, in accordance with its terms, have been done or taken and the execution and delivery of this Supplemental Agreement No. 1 have been in all respects duly authorized.

A G R E E M E N T :

NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, and for other consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as follows:

SECTION 1. Supplement to Original Fiscal Agent Agreement. In accordance with the provisions of Section 5.17 and 8.05 of the Original Fiscal Agent Agreement, the Original Fiscal Agent Agreement is hereby amended by adding a new article thereto, to be designated as Article X. Such Article X shall read in its entity as follows:

ARTICLE X
2024 BONDS
Section 10.01. Definitions. The Original Fiscal Agent Agreement is amended to add the following definitions to Section 1.03.
“Article X” means this Article X which has been incorporated in and made a part of this Agreement pursuant to Supplemental Agreement No. 1, together with all amendments of and supplements to this Article X entered into pursuant to the provisions of Section 8.01. “Continuing Disclosure Certificate” means (i) with respect to the 2021 Bonds, the Continuing Disclosure Certificate, dated as of closing date for the 2021 Bonds, by and between the Authority and Goodwin Consulting Group, Inc., in its capacity as Dissemination Agent, as originally executed and as it may be amended from time to time in accordance with the terms thereof and (ii) with respect to the 2024 Bonds, the Continuing Disclosure Certificate, dated as of the Closing Date for the 2024 Bonds, by and among the Authority and Goodwin Consulting Group, Inc., in its capacity as Dissemination Agent, as originally executed and as it may be amended from time to time in accordance with the terms thereof.

7.1.b
Packet Pg. 138 Attachment: 2 Supp FAA No. 1 - Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special -3-
“Closing Date” means, when referring to the 2024 Bonds and as used in this Supplemental Agreement No. 1, January ___, 2024.
“Interest Payment Dates” means (i) with respect to the 2021 Bonds, March 1 and September 1 of each year, commencing March 1, 2022, and (ii) with respect to the 2024 Bonds, March 1 and September 1 of each year, commencing September 1, 2024. “Supplemental Agreement No. 1” means Supplemental Agreement No. 1 to Fiscal Agent Agreement, dated as of February 1, 2024, between the Authority, for and on behalf of the District, and the Fiscal Agent.
“2024 Bonds” means the West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson) Special Tax Bonds, Series 2024, authorized to be issued under Section 10.02.
“2024 Costs of Issuance” means items of expense payable or reimbursable directly or indirectly by the Authority and related to the authorization, sale and issuance of the 2024 Bonds, which items of expense shall include, but not be limited to, printing costs, costs of reproducing and binding documents, closing costs, filing and recording fees, initial fees, expenses and charges of the Fiscal Agent including its first annual administration fee, expenses incurred by the Authority in connection with the issuance of the 2024 Bonds, financial advisor fees, (underwriter’s) discount or underwriting fee for the 2024 Bonds, legal fees and charges, including bond counsel, disclosure counsel, charges for execution, transportation and safekeeping of the 2024 Bonds and other costs, charges and fees in connection with the foregoing.
“2024 Costs of Issuance Fund” means the fund by that name established and held by the Fiscal Agent pursuant to Section 10.07.
“2024 Improvement Account” means the account by that name established in Section 3(A) of this Supplemental Agreement No. 1 hereof.
“2024 Reserve Account” means the account by that name established in Section

10.06(B) of this Supplemental Agreement No. 1 hereof.
“Term 2024 Bonds” means the 2024 Bonds maturing September 1, 20___ and September 1, 20___.

Section 10.02. Authorization of 2024 Bonds. 2024 Bonds in the aggregate principal amount of $___________ are hereby authorized to be issued as Additional Bonds under and subject to the terms of this Agreement, the Act, and other applicable laws of the State of California. The 2024 Bonds shall be designated the “West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson) Special Tax Bonds, Series 2024.”
Jurisdiction is hereby reserved to issue subsequent Additional Bonds; provided that the maximum aggregate principal amount of bonds which may be issued for the District shall not exceed the Bond Authorization.

7.1.b
Packet Pg. 139 Attachment: 2 Supp FAA No. 1 - Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special -4-
Section 10.03. Terms of 2024 Bonds.
(A) Form; Denominations. The 2024 Bonds shall be issued as fully registered Bonds without coupons in the denomination of $5,000 or any integral multiple of $5,000 in excess thereof.
(B) Date of the 2024 Bonds. The 2024 Bonds shall be dated the Closing Date for the 2024 Bonds.
(C) CUSIP Identification Numbers. “CUSIP” identification numbers shall be imprinted on the 2024 Bonds, but such numbers shall not constitute a part of the contract evidenced by the 2024 Bonds and any error or omission with respect thereto shall not constitute cause for refusal of any purchaser to accept delivery of and pay for the 2024 Bonds. In addition, failure on the part of the Authority or the Fiscal Agent to use such CUSIP numbers in any notice to Owners shall not constitute an event of default or any violation of the Authority’s contract with such Owners and shall not impair the effectiveness of any such notice. (D) Maturities, Interest Rates. The 2024 Bonds shall be issued as serial bonds and term bonds, and shall mature and become payable as follows:

Maturity Date
(Sept. 1)
Principal
Amount
Interest
Rate
Maturity Date
(Sept.1)
Principal
Amount
Interest
Rate
T Term Bond
(E) Interest and Method of Payment. Interest on the 2024 Bonds shall be payable as provided in Section 2.02(E) of this Agreement, with the Closing Date as used therein being a Closing Date herein, and payments shall be made on the 2024 Bonds as provided in Section

2.02(F), with the first Interest Payment Date being September 1, 2024.

Section 10.04. Redemption of 2024 Bonds.
(A) Redemption Dates.
(i) Optional Redemption. The 2024 Bonds are subject to optional redemption from any source of available funds (other than Prepayments of the Special Tax by property owners), in whole or in part among maturities as specified by the Authority and by lot within a maturity, on any date on and after September 1, 20___ at the following respective redemption prices (expressed as percentages of the principal amount of the 2024 Bonds to be redeemed), plus accrued interest thereon to the date of redemption:

7.1.b
Packet Pg. 140 Attachment: 2 Supp FAA No. 1 - Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special -5-
Redemption Dates Redemption Price
September 1, 20___ through August 31, 20___ 103%
September 1, 20___ through August 31, 20___ 102
September 1, 20___ through August 31, 20___ 101
September 1, 20___ and any date thereafter 100
(ii) Mandatory Redemption From Prepayments. The 2024 Bonds are subject to mandatory redemption from Prepayments of the Special Tax by property owners, in whole or in part among maturities as specified by the Authority and by lot within a maturity, on any Interest Payment Date at the following respective redemption prices (expressed as percentages of the principal amount of the 2024 Bonds to be redeemed), plus accrued interest thereon to the date of redemption:

Redemption Dates Redemption Price
Interest Payment Dates through March 1, 20___ 103%
September 1, 20___ and March 1, 20___ 102
September 1, 20___ and March 1, 20___ 101
September 1, 20___ and Interest Payment Dates thereafter 100 (iii) Mandatory Sinking Payment Redemption. The Term 2024 Bonds maturing September 1, 20___ are subject to mandatory sinking payment redemption in part on September 1, 20___ and on each September 1 thereafter to maturity, by lot, at a redemption price equal to 100% of the principal amount thereof to be redeemed, without premium, in the aggregate respective principal amounts as set forth in the following table:

Mandatory
Redemption Date
(Sept. 1)
Sinking Fund
Payment
20___ (maturity)
The Term 2024 Bonds maturing September 1, 20___ are subject to mandatory sinking payment redemption in part on September 1, 20___ and on each September 1 thereafter to maturity, by lot, at a redemption price equal to 100% of the principal amount thereof to be redeemed, without premium, in the aggregate respective principal amounts as set forth in the following table:

Mandatory
Redemption Date
(Sept. 1)
Sinking Fund
Payment
20___ (maturity)
The amounts in the foregoing tables shall be reduced pro rata, at the direction of the Authority in an Officer’s Certificate, as a result of any prior partial optional or mandatory

7.1.b
Packet Pg. 141 Attachment: 2 Supp FAA No. 1 - Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special -6-
redemption of the Term 2024 Bonds pursuant to clause (A)(i) or clause (A)(ii) above. In the event of a redemption pursuant to clause (A)(i) or clause (A)(ii) above, the Authority shall provide the Fiscal Agent with a revised sinking fund schedule giving effect to the redemption so completed.

In lieu of redemption under this Section 10.04, moneys in the Bond Fund may be used and withdrawn by the Fiscal Agent for purchase of Outstanding 2024 Bonds, upon the filing with the Fiscal Agent of an Officer’s Certificate requesting such purchase, at public or private sale as and when, and at such prices (including brokerage and other charges) as such Officer’s Certificate may provide, but in no event may 2024 Bonds be purchased at a price in excess of the principal amount thereof, plus interest accrued to the date of purchase. (B) Notice to Fiscal Agent. The Authority shall give the Fiscal Agent an Officer’s Certificate containing notice of its intention to redeem 2024 Bonds pursuant to clause (A)(i) or clause (A)(ii) not less than 45 days prior to the applicable redemption date. (C) Redemption Procedure by Fiscal Agent; Rescission; Effect of Redemption. The redemption provisions set forth in Section 2.03(C) and Section 2.03(D) shall apply to the 2024 Bonds as if set forth herein.

Section 10.05. Form of 2024 Bonds; Authentication and Delivery. (A) Form of 2024 Bonds. The 2024 Bonds, the form of Fiscal Agent’s certificate of authentication, and the form of assignment to appear thereon, shall be substantially in the respective forms set forth in Exhibit A attached hereto and by this reference incorporated herein (which shall become “Exhibit C” to the Original Fiscal Agent Agreement), with necessary or appropriate variations, omissions and insertions, as permitted or required by this Agreement and the Act.
(B) Execution of 2024 Bonds. The 2024 Bonds shall be executed on behalf of the Authority by the Executive Director and Secretary of the Authority who are in office on the date of adoption of this Agreement or at any time thereafter, and the seal of the Authority may be impressed, imprinted or reproduced by facsimile signature thereon. If any officer whose signature appears on any 2024 Bond ceases to be such officer before delivery of the 2024 Bonds to the Owner, such signature shall nevertheless be as effective as if the officer had remained in office until the delivery of the 2024 Bonds to the Owner. Any 2024 Bond may be signed and attested on behalf of the Authority by such persons as at the actual date of the execution of such 2024 Bond shall be the proper officers of the Authority although at the nominal date of such 2024 Bond any such person shall not have been such officer of the Authority.

Only such of the 2024 Bonds as shall bear thereon a certificate of authentication in the form set forth in Exhibit A, manually or electronically executed and dated by the Fiscal Agent, shall be valid or obligatory for any purpose or entitled to the benefits of this Agreement, and such certificate of the Fiscal Agent shall be conclusive evidence that such 2024 Bonds have been duly authenticated and delivered hereunder and are entitled to the benefits of this Agreement.
(C) Authentication and Delivery of 2024 Bonds; Transfer and Exchange; Additional Provisions of the 2024 Bonds. At any time after the execution of Supplemental Agreement No. 1 and delivery by the Authority of an Officer’s Certificate that the requirements of Section 5.17 for

7.1.b
Packet Pg. 142 Attachment: 2 Supp FAA No. 1 - Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special -7-
the issuance of the 2024 Bonds as Additional Bonds have been met, the Authority may issue the 2024 Bonds for the District in the aggregate principal amount set forth in Section 10.02 and deliver the 2024 Bonds to the Original Purchaser. The Authorized Officers of the Authority are hereby authorized and directed to deliver any and all documents and instruments necessary to cause the issuance of the 2024 Bonds in accordance with the provisions of the Act and this Agreement, as supplemented by Supplemental Agreement No. 1, to authorize the payment of 2024 Costs of Issuance and costs of the Project by the Fiscal Agent from the proceeds of the 2024 Bonds and to do and cause to be done any and all acts and things necessary or convenient for delivery of the 2024 Bonds to the Original Purchaser.

The provisions of Sections 2.06 through 2.13 of the Original Fiscal Agent Agreement shall apply to the 2024 Bonds in a like manner as applied to the 2021 Bonds.

Section 10.06. Application of Proceeds of Sale of 2024 Bonds. (A) Proceeds of 2024 Bonds. The proceeds of the purchase of the 2024 Bonds by the Original Purchaser in the amount of $__________ (being the aggregate principal amount thereof, plus/less [net] original issue premium/discount of $_________, less an Underwriter’s discount of $____________), shall be paid to the Fiscal Agent, who shall forthwith set aside, pay over and deposit such proceeds on the Closing Date as follows:
(i) Deposit in the 2024 Reserve Account of the Reserve Fund $___________, equaling the initial amount of the Reserve Requirement for the 2024 Bonds;
(ii) Deposit in the 2024 Improvement Account of the Improvement Fund $____________; and
(iii) Deposit in the 2024 Costs of Issuance Fund $___________. (B) 2024 Reserve Account. In accordance with Section 4.03(A), the Fiscal Agent shall establish a separate subaccount within the Reserve Fund known as the “2024 Reserve Account,” into which the amounts set forth in Section 10.06(A)(i) shall be deposited. The 2021 Reserve Account and the 2024 Reserve Account shall be held by the Fiscal Agent within the Reserve Fund, and administered as set forth in the Agreement. The Reserve Requirement for the 2024 Bonds shall not increase at any time.
(C) Additional Funds and Accounts. The Fiscal Agent may, in its discretion, establish a temporary fund or account in its books and records to facilitate transfers required under this Section 10.06.

Section 10.07. 2024 Costs of Issuance Fund. There is hereby established a separate fund to be known as the “2024 Costs of Issuance Fund,” which shall be held by the Fiscal Agent in trust. Amounts in the Costs of Issuance Fund shall be disbursed from time to time to pay 2024 Costs of Issuance, as set forth in an Officer’s Certificate containing respective amounts to be paid to the designated payees, signed by an Authorized Officer or a designee thereof and delivered to the Fiscal Agent. The Fiscal Agent shall pay all 2024 Costs of Issuance upon receipt of an invoice from any such payee which requests payment in an amount which is less than or equal to the amount set forth with respect to such payee in such Officer’s Certificate, or upon receipt of an Officer’s Certificate requesting payment of a 2024 Costs of Issuance not listed on the initial Officer’s Certificate delivered to the Fiscal Agent on the Closing Date. The

7.1.b
Packet Pg. 143 Attachment: 2 Supp FAA No. 1 - Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special -8-
Fiscal Agent shall maintain the 2024 Costs of Issuance Fund for a period of 2 months from the Closing Date and then shall transfer any moneys remaining therein, including any investment earnings thereon, to the 2024 Improvement Account. Thereafter, every invoice received by the Fiscal Agent shall be paid from amounts on deposit in the 2024 Improvement Account and the Fiscal Agent shall close the 2024 Costs of Issuance Fund. Moneys in the 2024 Costs of Issuance Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from said investment shall be retained by the Fiscal Agent in the 2024 Costs of Issuance Fund to be used for the purposes of such fund.

Section 10.08. Procedure for Disbursement of 2024 Improvement Account.. (A) Disbursements. Disbursements from the 2024 Improvement Account shall be made by the Fiscal Agent according to the procedure set forth in Section 3.04, and an Officer’s Certificate substantially in the form of Exhibit B to the Agreement (except that in such Officer’s Certificate, reference shall be made to the 2024 Improvement Account and to the 2024 Bonds). (B) Investment. Moneys in the Improvement Fund and the accounts established thereunder shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits from the investment of amounts in the Improvement Fund shall be retained by the Fiscal Agent in the Improvement Fund to be used for the purposes of the Improvement Fund. (C) Closing of Fund. Upon the filing of an Officer’s Certificate stating that the portion of the Project to be financed from the Improvement Fund and the accounts established thereunder has been completed and that all costs of such portion of the Project have been paid or are not required to be paid from the Improvement Fund, the Fiscal Agent shall transfer the amount, if any, remaining in the Improvement Fund to the Bond Fund for application to the payment of principal of and interest on the Bonds in accordance with Section 4.02 and the Improvement Fund shall be closed.

Section 10.09. Security for 2024 Bonds. The 2024 Bonds shall be Additional Bonds which shall be secured in the manner and to the extent set forth in Articles IV and V, and in this Article X.

Section 10.10. Effect of this Article X. Except as in this Article X expressly provided or except to the extent inconsistent with any provision of this Article X, the 2024 Bonds shall be deemed to be “Bonds” under and within the meaning of Section 1.03, and every term and condition contained in the foregoing provisions of this Agreement shall apply to the 2024 Bonds with full force and effect, with such omissions, variations and modifications thereof as may be appropriate to make the same conform to this Article X.

SECTION 2. Attachment of Exhibit C. The Original Fiscal Agent Agreement is hereby further amended by incorporating therein an “Exhibit C” setting forth the form of the 2024 Bonds, which shall read in its entirety as set forth in Exhibit A attached hereto and hereby made a part hereof.

SECTION 3. Additional Amendments to Original Fiscal Agent Agreement. The Original Fiscal Agent Agreement is hereby further amended as follows:
(A) Section 3.04(A) of the Agreement is hereby amended by adding thereto, as a new third sentence thereof, the following: “There is also hereby created within the Improvement Fund a separate account designated as the “2024 Improvement Account” of the Improvement Fund,

7.1.b
Packet Pg. 144 Attachment: 2 Supp FAA No. 1 - Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special -9-
which account is hereby established for purposes of accounting for the use and disposition of 2024 Bond proceeds directed to the Improvement Fund pursuant to Section 10.06 and 10.08. (B) References in the Original Fiscal Agent Agreement to the 2021 Bonds which, if the context requires reference to the 2021 Bonds and any Additional Bonds in order to maintain the parity relationship of the 2021 Bonds and any Additional Bonds and the security therefor, shall be deemed to refer to “Bonds” as defined in the Original Fiscal Agent Agreement rather than “2021 Bonds.”
(C) Section 4.03(A) of the Original Fiscal Agent Agreement is hereby amended by adding thereto the following: “There is hereby created within the Reserve Fund an additional separate account designated as the “2024 Reserve Account” which is hereby established for accounting purposes only regarding the use and disposition of the amounts of the proceeds of the 2024 Bonds. The Reserve Fund shall be a parity fund, amounts in the 2024 Reserve Account shall for all purposes of this Agreement be deemed to be part of the aggregate amount on deposit in the Reserve Fund and amounts in such accounts and any earnings thereon in such accounts shall be drawn upon in the same manner, according to the same terms and pro rata with all other amounts in the Reserve Fund whenever a draw is made on the Reserve Fund under this Section 4.03.

In the definition of “Reserve Requirement,” is revised as follows: “Reserve Requirement ”means, for all Bonds outstanding from time to time, the least of (i) 125% of the average Annual Debt Service with respect to the Bonds; (ii) Maximum Annual Debt Service with respect to the Bonds; and (iii) 10% of the original principal amount of the Bonds (or, if an series of Bonds has more than a de minimis amount of original issue discount or premium, 10% of the issue price of such series of Bonds); provided, that—
(a) the Reserve Requirement shall not increase after the date of issuance of any series Bonds;
(b) in no event shall the Authority or the City be obligated to deposit an amount in any reserve fund in excess of the amount permitted by the applicable provisions of the Code to be so deposited from the proceeds of tax-exempt bonds without having to restrict the yield of any investment purchased with any portion of such deposit and, if the amount of any such deposit is so limited, the Reserve Requirement shall be only the amount of such deposit as permitted by the Code; and (c) the Authority may meet all or a portion of the Reserve Requirement with respect to any series of Bonds by depositing a Qualified Reserve Fund Credit Instrument in accordance with Section 4.03(A).
(D) In the definition of “Special Tax Revenues,” the parenthetical “(currently at 1%)” is deleted.

SECTION 4. Partial Invalidity. If any section, paragraph, sentence, clause or phrase of this Supplemental Agreement No. 1 shall for any reason be held illegal, invalid or unenforceable, such holding shall not affect the validity of the remaining portions of this Supplemental Agreement No. 1. The Authority hereby declares that it would have entered into this Supplemental Agreement No. 1 and each and every other Section, paragraph, sentence, clause or phrase hereof and authorized the issue of the 2024 Bonds pursuant thereto

7.1.b
Packet Pg. 145 Attachment: 2 Supp FAA No. 1 - Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special -10-
irrespective of the fact that any one or more Sections, paragraphs, sentences. clauses, or phrases of this Supplemental Agreement No. 1 may be held illegal, invalid or unenforceable.

SECTION 5. Execution in Counterparts. This Supplemental Agreement No. 1 may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.

SECTION 6. Governing Law. This Supplemental Agreement No. 1 shall be construed and governed in accordance with the laws of the State of California applicable to contracts made and performed in such State.

7.1.b
Packet Pg. 146 Attachment: 2 Supp FAA No. 1 - Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special [Signature Page to Supplemental Agreement No. 1 to
Fiscal Agent Agreement dated as of February 1, 2024]
IN WITNESS WHEREOF, the Authority and the Fiscal Agent have caused this Supplemental Agreement No. 1 to Fiscal Agent Agreement to executed as of February 1, 2024.

WEST PATTERSON FINANCING
AUTHORITY, for and on behalf of the West
Patterson Financing Authority Community
Facilities District No. 2018-1 (Villages of
Patterson)
By:

Executive Director
ATTEST:

By:

Secretary
U.S. BANK TRUST COMPANY, NATIONAL
ASSOCIATION, as Fiscal Agent
By:

Vice President

7.1.b
Packet Pg. 147 Attachment: 2 Supp FAA No. 1 - Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special A-1
EXHIBIT A TO SUPPLEMENTAL AGREEMENT NO. 1 TO FISCAL AGENT AGREEMENT

EXHIBIT C TO ORIGINAL FISCAL AGENT AGREEMENT
FORM OF 2024 BONDS

UNITED STATES OF AMERICA

STATE OF CALIFORNIA
No. $

WEST PATTERSON FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 1 (VILLAGES OF PATTERSON) SPECIAL TAX BONDS, SERIES 2024
INTEREST RATE: MATURITY DATE: BOND DATE: CUSIP:

September 1, ____ January ___, 2024
REGISTERED OWNER: CEDE & CO.

PRINCIPAL AMOUNT: DOLLARS
The West Patterson Financing Authority (the “Authority”) for and on behalf of the West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson) (the “District”), for value received, hereby promises to pay solely from the Special Tax Revenues (as hereinafter defined) to be collected in the District or amounts in certain funds and accounts held under the Agreement (as hereinafter defined), to the Registered Owner named above, or registered assigns (the “Owner”), on the Maturity Date set forth above, unless redeemed prior thereto as hereinafter provided, the Principal Amount set forth above, and to pay interest on such principal amount from the Bond Date shown above, or from the most recent Interest Payment Date (as hereinafter defined) to which interest has been paid or duly provided for, semiannually on March 1 and September 1, commencing September 1, 2024 (the “Interest Payment Dates”), at the Interest Rate set forth above, until the principal amount hereof is paid or made available for payment. The principal of this Bond is payable to the Owner hereof in lawful money of the United States of America upon presentation and surrender of this Bond at a designated corporate trust office of U.S. Bank Trust Company, National Association in San Francisco, California (the “Fiscal Agent”). Interest on this Bond shall be paid by check of the Fiscal Agent mailed by first class mail on each Interest Payment Date to the Owner hereof as of the close of business on the 15th day of the month preceding the month in which the Interest Payment Date occurs (the “Record Date”) at such Owner’s address as it appears on the registration books maintained by the Fiscal Agent, or by wire transfer made on such Interest Payment Date upon written instructions delivered to the Fiscal Agent by the applicable Record Date of any Owner of $1,000,000 or more in aggregate principal amount of Bonds.

This Bond is one of a duly authorized issue of bonds approved by resolution of the Board of Directors of the Authority on _________, 2024 (the “Resolution”), pursuant to the

7.1.b
Packet Pg. 148 Attachment: 2 Supp FAA No. 1 - Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special A-2
Mello-Roos Community Facilities Act of 1982, as amended, Sections 53311, et seq., of the California Government Code (the “Mello-Roos Act”) for the purpose of providing moneys for the construction and acquisition of improvements authorized to be financed by the District, and is one of the bonds designated “West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson) Special Tax Bonds, Series 2024” (the “Bonds”). The issuance of the Bonds and the terms and conditions thereof are provided for by a Fiscal Agent Agreement, dated as of October 1, 2021, as amended and supplemented by a Supplemental Agreement No. 1 to Fiscal Agent Agreement dated as of February 1, 2024 (together, the “Agreement”), by and between the Authority and the Fiscal Agent and this reference incorporates the Agreement herein, and by acceptance hereof the Owner of this Bond assents to said terms and conditions. The Agreement is authorized under, this Bond is issued under and both are to be construed in accordance with, the laws of the State of California.

Pursuant to the Mello-Roos Act, the Agreement and the Resolution, the principal of and interest on this Bond are payable, on parity with previously issued bonds of the District, solely from the Special Tax Revenues and the amounts in certain funds held under the Agreement. “Special Tax Revenues” means the proceeds of the facilities special tax (“Special Taxes”) levied under the Mello-Roos Act in the District that are received by the Authority, including all scheduled payments and delinquent payments thereof, interest thereon and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the special taxes, net of the administration charge of the County, but not including interest in excess of the interest due on the Bonds or any penalties collected in connection with any such foreclosure.

Interest on this Bond shall be payable from the Interest Payment Date next preceding the date of authentication hereof, unless (i) it is authenticated on an Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or (ii) such date of authentication is after a Record Date but on or prior to an Interest Payment Date, in which event interest will be payable from such Interest Payment Date, or (iii) such date of authentication is prior to the first Record Date, in which event interest will be payable from the Bond Date shown above; provided however, that if at the time of authentication of this Bond, interest is in default hereon, this Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment hereon.

Any tax for the payment hereof shall be limited to the Special Tax, except to the extent that provision for payment has been made by the Authority as may be permitted by law. The Bonds do not constitute obligations of the Authority for which the Authority is obligated to levy or pledge, or has levied or pledged, general or special taxation other than described herein above.

The Bonds are subject to optional redemption from any source of available funds (other than Prepayments of the Special Tax by property owners), in whole or in part among maturities as specified by the Authority and by lot within a maturity, on any date on and after September 1, 20___ at the following respective redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), plus accrued interest thereon to the date of redemption:

Redemption Dates Redemption Price
September 1, 20___ through August 31, 20___ 103%
September 1, 20___ through August 31, 20___ 102
September 1, 20___ through August 31, 20___ 101
September 1, 20___ and any date thereafter 100

7.1.b
Packet Pg. 149 Attachment: 2 Supp FAA No. 1 - Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special A-3
The Bonds are subject to mandatory redemption from prepayments of the Special Tax by property owners, in whole or in part among maturities as specified by the Authority and by lot within a maturity, on any Interest Payment Date at the following respective redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), plus accrued interest thereon to the date of redemption:

Redemption Dates Redemption Price
Interest Payment Dates through March 1, 20___ 103%
September 1, 20___ and March 1, 20___ 102
September 1, 20___ and March 1, 20___ 101
September 1, 20___ and Interest Payment Dates thereafter 100 The Term Bonds maturing September 1, 20___ are subject to mandatory sinking payment redemption in part on September 1, 20___ and on each September 1 thereafter to maturity, by lot, at a redemption price equal to 100% of the principal amount thereof to be redeemed, without premium, in the aggregate respective principal amounts as set forth in the following table:

Mandatory
Redemption Date
(Sept. 1)
Sinking Fund
Payment
20___ (maturity)
The Term Bonds maturing September 1, 20___ are subject to mandatory sinking payment redemption in part on September 1, 20___ and on each September 1 thereafter to maturity, by lot, at a redemption price equal to 100% of the principal amount thereof to be redeemed, without premium, in the aggregate respective principal amounts as set forth in the following table:

Notice of redemption with respect to the Bonds to be redeemed shall be given to the Owners thereof, in the manner, to the extent and subject to the provisions of the Agreement.

This Bond shall be registered in the name of the Owner hereof, as to both principal and interest. Each registration and transfer of registration of this Bond shall be entered by the Fiscal Agent in books kept by it for this purpose and authenticated by its manual signature upon the certificate of authentication endorsed hereon.

7.1.b
Packet Pg. 150 Attachment: 2 Supp FAA No. 1 - Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special A-4
No transfer or exchange hereof shall be valid for any purpose unless made by the registered owner, by execution of the form of assignment endorsed hereon, and authenticated as herein provided, and the principal hereof, interest hereon and any redemption premium shall be payable only to the registered owner or to such Owner’s order. The Fiscal Agent shall require the Owner requesting transfer or exchange to pay any tax or other governmental charge required to be paid with respect to such transfer or exchange. No transfer or exchange hereof shall be required to be made (i) within 15 days prior to the date established by the Fiscal Agent for selection of Bonds for redemption or (ii) with respect to a Bond after such Bond has been selected for redemption.

The Agreement and the rights and obligations of the Authority thereunder may be modified or amended as set forth therein. The principal of the Bonds is not subject to acceleration upon a default under the Agreement or any other document. This Bond shall not become valid or obligatory for any purpose until the certificate of authentication hereon endorsed shall have been dated and manually signed by the Fiscal Agent. It is hereby certified, recited and declared that all acts, conditions and things required by law to exist, happen and be performed precedent to and in the issuance of this Bond have existed, happened and been performed in due time, form and manner as required by law, and that the amount of this Bond, together with all other indebtedness of the Authority, does not exceed any debt limit prescribed by the laws or Constitution of the State of California.

Unless this Bond is presented by an authorized representative of The Depository Trust Company to the Fiscal Agent for registration of transfer, exchange or payment, and any Bond issued is registered in the name of Cede & Co. or such other name as requested by an authorized representative of The Depository Trust Company and any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest herein.

7.1.b
Packet Pg. 151 Attachment: 2 Supp FAA No. 1 - Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special A-5
IN WITNESS WHEREOF, the West Patterson Financing Authority has caused this Bond to be executed by the facsimile signatures of the Executive Director and the Secretary of the Authority, all as of the Bond Date stated above.

WEST PATTERSON FINANCING
AUTHORITY, for and on behalf of the WEST

PATTERSON FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO.
2018-1 (VILLAGES OF PATTERSON)
By:

Chair
By:

Secretary
FISCAL AGENT’S CERTIFICATE OF AUTHENTICATION
This is one of the Bonds described in the Resolution and the Agreement.

Dated: _____________, 2024
U.S. BANK TRUST COMPANY,
NATIONAL ASSOCIATION, as Fiscal
Agent
By:

Authorized Signatory

7.1.b
Packet Pg. 152 Attachment: 2 Supp FAA No. 1 - Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special A-6

FORM OF ASSIGNMENT
FOR VALUE RECEIVED, the undersigned do(es) hereby sell, assign and transfer unto (Name, address and Tax identification Number of Assignee) the within-mentioned registered Bond and hereby irrevocably constitute(s) and appoint(s) , attorney,
to transfer the same on the registration books of the Fiscal Agent with full power of substitution in the premises.

Dated:

Signature Guaranteed:

NOTE: Signature(s) must be guaranteed by a
member firm of the New York Stock Exchange or a
commercial bank or trust company.

NOTE: The signature(s) on this Assignment must
correspond with the name(s) as written on the face of
the within Bond in every particular without alteration
or enlargement or any change whatsoever.

7.1.b
Packet Pg. 153 Attachment: 2 Supp FAA No. 1 - Patterson CFD 2018-1 (VOP) Series 2024 (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Jones Hall Draft of December 28, 2023
PRELIMINARY OFFICIAL STATEMENT DATED JANUARY ___, 2024

NEW ISSUE-FULL BOOK ENTRY NOT RATED
In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject, however, to certain qualifications described in this Official Statement, under existing law, the interest on the 2024 Bonds is excluded from gross income for federal income tax purposes and such interest is not an item of tax preference for purposes of the federal alternative minimum tax.

Interest on the 2024 Bonds may be subject to the corporate alternative minimum tax. In the further opinion of Bond Counsel, interest on the 2024 Bonds is exempt from State of California personal income tax. See “TAX MATTERS.” $________*

WEST PATTERSON FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 2018-1 (VILLAGES OF PATTERSON)

SPECIAL TAX BONDS
SERIES 2024
Dated: Date of Delivery Due: September 1, as shown on inside cover The bonds captioned above (the “2024 Bonds”) are being issued by the West Patterson Financing Authority (the “Authority”) by and through its Community Facilities District No. 2018-1 (Villages of Patterson) (the “District”). The 2024 Bonds are special tax obligations of the Authority, authorized pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being California Government Code Section 53311, et seq. (the “Act”), and are issued pursuant to a Fiscal Agent Agreement dated as of October 1, 2021, as supplemented and amended by Supplemental Agreement No. 1 to Fiscal Agent Agreement dated as of February 1, 2024 (together, the “Fiscal Agent Agreement”) by and between the Authority and U.S. Bank Trust Company, National Association, as successor fiscal agent (the “Fiscal Agent”). The 2024 Bonds are being issued to (i) construct and/or acquire certain public facilities authorized to be financed by the District, (ii) increase the amount in a reserve fund, and (iii) pay the costs of issuing the 2024 Bonds. Interest on the 2024 Bonds is payable semiannually on March 1 and September 1 of each year, commencing September 1, 2024.

The 2024 Bonds are being issued as fully registered bonds, registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”), and will be available to ultimate purchasers in the denomination of $5,000 or any integral multiple thereof, under the book-entry system maintained by DTC. See “APPENDIX F – DTC AND THE BOOK-ENTRY SYSTEM.” The 2024 Bonds will be secured on a parity basis with outstanding special tax bonds issued for the District in 2021 in the original amount of $4,465,000 (the “2021 Bonds” and together with the 2024 Bonds and additional parity bonds that may be issued in the future, the “Bonds”).

The 2024 Bonds (together with parity special tax bonds) are secured by and payable from a pledge of Special Tax Revenues (as defined herein) derived from Special Taxes (as defined herein) to be levied by the Authority on real property within the boundaries of the District, from the proceeds of any foreclosure actions brought following a delinquency in the payment of the Special Taxes, and from amounts held in certain funds under the Fiscal Agent Agreement, all as more fully described herein. Unpaid Special Taxes do not constitute a personal indebtedness of the owners of the parcels within the District. In the event of delinquency, proceedings may be conducted only against the parcel of real property securing the delinquent Special Tax. There is no assurance the owners will be able to pay the Special Tax or that they will pay a Special Tax even though financially able to do so. The 2024 Bonds are also secured by amounts in a parity reserve fund established for the Bonds. See “SECURITY FOR THE BONDS.” The District is located in the City of Patterson, in Stanislaus County, California, and is currently being developed for residential uses and includes completed homes. The City lies in the Central Valley of the State, approximately 90 miles southeast of San Francisco and 90 miles south of Sacramento. The City is located on State Route 33, adjacent to U.S. Interstate 5 and approximately 18 miles southwest of Modesto. Special Taxes can only be levied on Developed Property (as defined herein). There are 448 residential parcels (comprising 472 residential units) classified as Developed Property and therefore subject to the Special Tax on the Fiscal Year 2024-25 County tax roll, including 325 residential parcels/units owned by individuals; home construction is ongoing and additional residential units will be subject to the Special Tax in future fiscal years. See “SPECIAL TAX REVENUES AND VALUE OF PROPERTY IN THE DISTRICT.” The District was formed with an adjacent future annexation area and expansion of the District is expected. See “THE DISTRICT” and “OWNERSHIP OF PROPERTY WITHIN THE DISTRICT.”
The 2024 Bonds are subject to optional and mandatory redemption prior to maturity as described herein. See “THE BONDS – Redemption.”

NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE AUTHORITY, THE CITY OF PATTERSON, THE

COUNTY OF STANISLAUS, THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE 2024 BONDS. THE 2024 BONDS DO NOT CONSTITUTE A DEBT OF THE AUTHORITY WITHIN THE MEANING OF ANY STATUTORY OR CONSTITUTIONAL DEBT LIMITATION. THE INFORMATION SET FORTH IN THIS OFFICIAL STATEMENT, INCLUDING INFORMATION UNDER THE HEADING “SPECIAL RISK FACTORS,” SHOULD BE READ IN ITS ENTIRETY.

This cover page contains certain information for general reference only. It is not a summary of all of the provisions of the 2024 Bonds. Prospective investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision. See “SPECIAL RISK FACTORS” herein for a discussion of the special risk factors that should be considered, in addition to the other matters and risk factors set forth herein, in evaluating the investment quality of the 2024 Bonds.

The 2024 Bonds are offered when, as and if issued, subject to approval as to their legality by Jones Hall, a Professional Law Corporation, San Francisco, California, Bond Counsel. Certain legal matters will also be passed on for the Authority by Jones Hall, as Disclosure Counsel and by Churchwell White LLP as counsel to the Authority. Certain legal matters will also be passed on for the Underwriter by Kutak Rock LLP, Irvine, California, as counsel to the Underwriter. It is anticipated that the 2024 Bonds will be available for delivery through the facilities of DTC on or about January ___, 2024. [Hilltop logo]
The date of this Official Statement is _______, 2024
_______________________________
* Preliminary, subject to change.

This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the Official Statement is delivered in final form. Under no circumstances will this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy nor will there be any sale of these securities in any jurisdiction in which such offer solicitation or sale would be unlawful.

7.1.c
Packet Pg. 154 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax

MATURITY SCHEDULE

SERIAL BONDS
Maturity Date
(September 1)
Principal
Amount
Interest
Rate
Price or
Yield
CUSIP†
(____)
$ % %
$___________ _______% Term Bond Due September 1, ____ Price: _______% CUSIP†: _______ $___________ _______% Term Bond Due September 1, ____ Price: _______% CUSIP†: _______ ___________________
† CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by FactSet Research Systems Inc. Copyright (c) 2024 CUSIP Global Services.

All rights reserved. CUSIP® data herein is provided by CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only. None of the City, the Underwriter or their agents or counsel take any responsibility for the accuracy of such numbers.

7.1.c
Packet Pg. 155 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax

WEST PATTERSON FINANCING AUTHORITY /

CITY OF PATTERSON
(STANISLAUS COUNTY, CALIFORNIA)
Board of Directors / City Council
Michael Clauzel, Chair / Mayor (At Large)
Shivaugn Alves, Board member / Council member (District A) Jessica Romero, Board member / Council member (District B) Dominic Farinha, Board member / Council member (District C) Carlos Roque, Board member / Council member (District D) Authority / City Staff
Ken Irwin, Executive Director / City Manager
Jennifer Riedeman, Treasurer / Finance Director
Aracely Alegre, Secretary / City Clerk
____________________________

SPECIAL SERVICES
Bond and Disclosure Counsel
Jones Hall, A Professional Law Corporation
San Francisco, California
Municipal Advisor
Del Rio Advisors, LLC
Modesto, California
Special Tax Consultant
Goodwin Consulting Group, Inc.

Sacramento, California
Appraiser
Integra Realty Resources
Sacramento, California
Fiscal Agent
U.S. Bank Trust Company, National Association
Los Angeles, California

7.1.c
Packet Pg. 156 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax

GENERAL INFORMATION ABOUT THIS OFFICIAL STATEMENT
Deemed Final. The Preliminary Official Statement has been deemed final as of its date by the Authority, in accordance with SEC Rule 15c2-12.

No Offering May Be Made Except by this Official Statement. No dealer, broker, salesperson or other person has been authorized by the Authority or the Underwriter to give any information or to make any representations with respect to the 2024 Bonds other than as contained in this Official Statement, and if given or made, such other information or representation must not be relied upon as having been authorized by the Authority or the Underwriter. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy in any state in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is not qualified to do so or to any person to whom it is unlawful to make such offer or solicitation.

Effective Date. This Official Statement speaks only as of its date, and the information and expressions of opinion contained in this Official Statement are subject to change without notice. Neither the delivery of this Official Statement nor any sale of the 2024 Bonds will, under any circumstances, create any implication that there has been no change in the affairs of the Authority or property in the District since the date of this Official Statement.

Use of this Official Statement. This Official Statement is submitted in connection with the sale of the 2024 Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose. This Official Statement is not a contract with the purchasers of the 2024 Bonds.

Preparation of this Official Statement. The information contained in this Official Statement has been obtained from sources that are believed to be reliable, but this information is not guaranteed as to accuracy or completeness.

The Underwriter has provided the following sentence for inclusion in this Official Statement: The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.

Document References and Summaries. All references to and summaries of the Fiscal Agent Agreement or other documents contained in this Official Statement are subject to the provisions of those documents and do not purport to be complete statements of those documents.

Stabilization of and Changes to Offering Prices. The Underwriter may overallot or take other steps that stabilize or maintain the market price of the 2024 Bonds at a level above that which might otherwise prevail in the open market. If commenced, the Underwriter may discontinue such market stabilization at any time. The Underwriter may offer and sell the 2024 Bonds to certain dealers, dealer banks and banks acting as agent at prices lower than the public offering prices stated on the cover page of this Official Statement, and those public offering prices may be changed from time to time by the Underwriter. 2024 Bonds are Exempt from Securities Laws Registration. The issuance and sale of the 2024 Bonds have not been registered under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, in reliance upon exemptions for the issuance and sale of municipal securities provided under Section 3(a)(2) of the Securities Act of 1933 and Section 3(a)(12) of the Securities Exchange Act of 1934.

Estimates and Projections. Certain statements included or incorporated by reference in this Official Statement constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “budget” or other similar words.

THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH FORWARDLOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH

MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS DESCRIBED TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARDLOOKING STATEMENTS. THE AUTHORITY DOES NOT PLAN TO ISSUE ANY UPDATES OR REVISIONS TO THOSE

FORWARD-LOOKING STATEMENTS IF OR WHEN ANY EXPECTATIONS, OR EVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH SUCH STATEMENTS ARE BASED OCCUR.

7.1.c
Packet Pg. 157 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -iTABLE OF CONTENTS
Page Page
INTRODUCTION................................................1 SOURCES AND USES OF FUNDS ..................5
THE BONDS ......................................................6 Authority for Issuance ....................................6 Description of the 2024 Bonds .......................6
Redemption ....................................................7 Transfer or Exchange of 2024 Bonds ............9
SECURITY FOR THE BONDS ........................10
Limited Obligation.........................................10 Pledge of Special Tax Revenues and Other
Amounts ...................................................10 Special Taxes...............................................11 Special Tax Methodology.............................12
Levy of Annual Special Tax; Maximum
Special Tax ..............................................15 Special Tax Fund .........................................15 Delinquent Payments of Special Tax;
Covenant for Superior Court Foreclosure 16
Parity Reserve Fund ....................................18 Bond Fund....................................................19 Improvement Fund .......................................20 Parity Bonds .................................................20 Discharge of Fiscal Agent Agreement .........22
Amendment of Fiscal Agent Agreement ......23
DEBT SERVICE SCHEDULE ..........................25
THE AUTHORITY ............................................26 THE DISTRICT ................................................26 Location and Description of the District,
Future Annexation Area and Vicinity........26
Development in the District ..........................28 THE IMPROVEMENTS....................................29
Eligible Facilities...........................................29 Anticipated Use of Bond Proceeds ..............29

OWNERSHIP OF PROPERTY WITHIN THE
DISTRICT.....................................................30 Individual Homeowners................................30 KB.................................................................30 K. Hovnanian................................................32 Trivo .............................................................33

SPECIAL TAX REVENUE AND VALUE OF
PROPERTY WITHIN THE DISTRICT..........34
Assessed Valuation......................................34 The Appraisal ...............................................35 Value to Special Tax Burden Ratios ............37
Estimated Maximum Special Tax Proceeds
and Debt Service Coverage.....................41
Overlapping Liens and Priority of Lien .........42
Estimated Tax Burden on Single-Family
Home........................................................44 Special Tax Collections and Delinquencies .45
SPECIAL RISK FACTORS ..............................46
Limited Obligation of the Authority to Pay
Debt Service.............................................46 Concentration of Ownership.........................46
Appraised Values .........................................46 Property Values and Property Development47
Levy and Collection of Special Taxes ..........50
Bankruptcy and Foreclosure Delays ............51
Parity Taxes and Special Assessments;
Private Debt .............................................52 Tax Delinquencies........................................53 No Acceleration Provisions ..........................53 Ballot Initiatives ............................................53 Voter Initiatives.............................................54 Case Law Related to the Mello-Roos Act
Voting .......................................................54 Pandemic Diseases .....................................56 Cyber Security..............................................56

CONSTITUTIONAL LIMITATIONS ON
TAXATION AND APPROPRIATIONS .........57
CONTINUING DISCLOSURE..........................58
UNDERWRITING.............................................58 MUNICIPAL ADVISOR ....................................58 LEGAL OPINION .............................................58 TAX MATTERS................................................59 NO RATINGS...................................................60 NO LITIGATION...............................................60 EXECUTION ....................................................60 APPENDIX A – The City of Patterson and Stanislaus County Demographic Information APPENDIX B – Rate and Method of Apportionment of Special Tax APPENDIX C – The Appraisal
APPENDIX D – Form of Continuing Disclosure Undertakings APPENDIX E – Form of Opinion of Bond Counsel
APPENDIX F – DTC and the Book-Entry System

7.1.c
Packet Pg. 158 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -1-

OFFICIAL STATEMENT
$________________*

WEST PATTERSON FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 2018-1
(VILLAGES OF PATTERSON)

SPECIAL TAX BONDS
SERIES 2024
This Official Statement, including the cover page and all appendices hereto, is provided to furnish certain information in connection with the issuance by the West Patterson Financing Authority (the “Authority”) by and through its Community Facilities District No. 2018-1 (Villages of Patterson) (the “District”) of the bonds captioned above (the “2024 Bonds”).

Any statements made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. Definitions of certain terms used herein and not defined herein have the meaning set forth in the Fiscal Agent Agreement.

INTRODUCTION
This introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement, including the cover page and attached appendices, and the documents summarized or described in this Official Statement. A full review should be made of the entire Official Statement. The offering of the 2024 Bonds to potential investors is made only by means of the entire Official Statement.

Authority for Issuance. The 2024 Bonds are issued pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended (Sections 53311, et seq., of the Government Code of the State of California) (the “Act”) and pursuant to a Fiscal Agent Agreement dated as of October 1, 2021, as supplemented and amended by a Supplemental Agreement No. 1 to Fiscal Agent Agreement dated as of February 1, 2024 (together, the “Fiscal Agent Agreement”) between the Authority and U.S. Bank Trust Company, National Association, as successor fiscal agent (the “Fiscal Agent”) and a resolution adopted by the Board of Directors of the Authority (the “Board”) on January ___, 2024 (the “Resolution of Issuance”), which authorized the issuance of the 2024 Bonds payable from Special Taxes (as defined herein) levied on property within the District according to a methodology approved by the Authority.

The Authority. The Authority is a joint exercise of powers authority organized and existing under and pursuant to the provisions of the California Government Code. The Authority was formed on June 5, 2001, and is a separate legal entity from the City and the District, constituting a public instrumentality of the State located in the County. The Authority is

7.1.c
Packet Pg. 159 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -2-
governed by a five-member Board. The members of the City Council of the City constitute the members of the Board. See “THE AUTHORITY.”
The District. The District is located in the City of Patterson (the “City”), in Stanislaus County (the “County”), California (the “State”) and is currently being developed for residential uses and includes completed homes. The City lies in the Central Valley of the State, approximately 90 miles southeast of San Francisco and 90 miles south of Sacramento. The City is located on State Route 33, adjacent to U.S. Interstate 5 and approximately 18 miles southwest of Modesto. For additional demographic information on the City and County, see “APPENDIX A – The City of Patterson and Stanislaus County Demographic Information.” There are approximately 172 acres in the District developing into residential uses. The Special Tax can only be levied on Developed Property; there is no authority to levy on undeveloped property. “Developed Property” per the Special Tax Formula (described herein) is comprised of taxable parcels in the District for which a building permit for new construction was issued by the City prior to June 1 of the preceding Fiscal Year.

There are 448 residential parcels (comprising 472 residential units) classified as Developed Property and therefore subject to the Special Tax on the Fiscal Year 2024-25 County tax roll, including 325 residential parcels/units owned by individuals; home construction is ongoing and additional residential units will be subject to the Special Tax in future fiscal years.

The following three developers have been active in the District:
• KB Home North Bay LLC, a Delaware limited liability company (“KB”), • K. Hovnanian Homes Northern California, Inc., a California corporation (“K. Hovnanian”), and
• VOP 2.1 LLC, a California limited liability company, which owns taxable property in the District through its affiliate Trivo LLC, a California limited liability company (together, “Trivo”).

The District was formed with an adjacent future annexation area and residential home expansion of the District, both in the undeveloped portion of the District and in the future annexation area, is expected, along with additional bonds secured on parity with the 2024 Bonds. See “THE DISTRICT” and “OWNERSHIP OF PROPERTY WITHIN THE DISTRICT.” Estimated Value of Property in the District. Taxable property in the District is security for the Special Tax. Because the land in the District is under development and includes homes owned by homeowners and on the County tax roll as completed homes, as well as completed homes not on the tax roll and homes under construction, the City determined an estimated value of property in the District by using both the County assessed valuation for the completed homes on the tax roll and additionally ordered an appraisal for an estimation of the value of the remainder of the taxable parcels in the District. The aggregate value estimate for the appraised properties as of the November 1, 2023 date of value, using the methodologies described in the Appraisal and subject to the limiting conditions and special assumptions set forth in the Appraisal, and based on the ownership of the property as of that date, is $69,223,500. When combined with the County assessed valuation of $131,952,427 for parcels in the District which were not appraised, the total estimated value of parcels in the District per the Appraisal is

7.1.c
Packet Pg. 160 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -3-
$201,175,927. This estimate of value is approximately 15.17* times the $13,260,000* aggregate principal amount of the Bonds (consisting of the 2024 Bonds and the 2021 Bonds); there is no overlapping land-secured debt. See “SPECIAL TAX REVENUE AND VALUE OF PROPERTY WITHIN THE DISTRICT.” Also see “APPENDIX C – The Appraisal.” Bond Terms. The 2024 Bonds will be dated as of and bear interest from the date of delivery thereof at the rate or rates set forth on the cover page of this Official Statement.

Interest on the 2024 Bonds is payable on March 1 and September 1 of each year (each an “Interest Payment Date”), commencing September 1, 2024. The 2024 Bonds will be issued without coupons in denominations of $5,000 or any integral multiple thereof.

Registration of Ownership of 2024 Bonds. The 2024 Bonds will be issued only as fully registered bonds in book-entry form, registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”). Ultimate purchasers of 2024 Bonds will not receive physical certificates representing their interest in the 2024 Bonds. So long as the 2024 Bonds are registered in the name of Cede & Co., as nominee of DTC, references herein to the Owners will mean Cede & Co., and will not mean the ultimate purchasers of the 2024 Bonds. Payments of the principal, premium, if any, and interest on the 2024 Bonds will be made directly to DTC, or its nominee, Cede & Co. so long as DTC or Cede & Co. is the registered owner of the 2024 Bonds. Disbursements of such payments to DTC’s Participants is the responsibility of DTC and disbursements of such payments to the Beneficial Owners is the responsibility of DTC’s Participants and Indirect Participants, as more fully described herein.

Use of Proceeds. Proceeds of the 2024 Bonds will primarily be used to finance a portion of the costs of acquiring and constructing certain public infrastructure improvements (the “Improvements”), as further described herein. The Improvements consist generally of school district facilities, as well as City facilities for water, wastewater, drainage, roadway and other infrastructure improvements (including environmental mitigation costs) necessary for development of property within the District. Construction of the backbone infrastructure and in‐ tract work for home development is complete. Additional Improvements will be completed as additional development occurs and additional parcels are annexed into the District and may be financed by additional bonds to be issued in the future, as described below, or other sources.

See “THE IMPROVEMENTS.” Proceeds of the 2024 Bonds will also be used to provide for a deposit to a debt service reserve account for the 2024 Bonds (described below) available for payment on the 2024 Bonds, and to pay cost of the issuance of the 2024 Bonds.

Parity Bonds. The maximum authorized indebtedness for the District is $90,000,000. In 2021, the Authority issued for and on behalf of the District, the West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson) Special Tax Bonds, Series 2021 (the “2021 Bonds”), in the initial principal amount of $4,465,000. The 2024 Bonds are the second series of bonds being issued by the District and additional special tax bonds are expected to be issued on a parity basis in the future for additional public infrastructure. So long as the 2024 Bonds are outstanding, any future bonds issued for the District and secured on parity with the 2024 Bonds (herein, “Additional Bonds”) are required to meet certain conditions of issuance as set forth in the Fiscal Agent Agreement and no bonds having a lien senior to the lien of the Bonds are allowed. See “SECURITY FOR THE BONDS – Future Parity Bonds.” _____________
* Preliminary; subject to change.

7.1.c
Packet Pg. 161 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -4-
Source of Payment of the Bonds. The Bonds (consisting of the 2024 Bonds, the 2021 Bonds and any future Additional Bonds) are payable from and secured by the “Special Tax Revenues,” which is defined as the amount derived from the proceeds of special taxes (“Special Taxes”) received by the Authority, including all scheduled payments and delinquent payments thereof, interest and penalties thereon and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes, net of administration charges of the County. The Special Tax can only be levied on Developed Property within the District, there is no authority to levy on undeveloped property. The 2024 Bonds are also payable from amounts held in certain funds and accounts pursuant to the Fiscal Agent Agreement, including a reserve fund, all as more fully described herein. The Special Tax applicable to each taxable parcel in the District will be levied and collected according to the tax liability determined by the Board through the application of a rate and method of apportionment of Special Tax for the District (the “Special Tax Formula”), which has been approved by the Board acting as the legislative body of the District. The Special Taxes represent liens on the parcels of land subject to a Special Tax and failure to pay the Special Taxes could result in proceedings to foreclose the delinquent property. The Special Taxes do not constitute the personal indebtedness of the owners of taxed parcels. See “SECURITY FOR THE BONDS – Special Tax Methodology” and “APPENDIX B – Rate and Method of Apportionment of Special Tax.”
Reserve Fund. Under the Fiscal Agent Agreement, the Fiscal Agent has established a parity Reserve Fund (the “Reserve Fund”) for all series of the Bonds, which will be increased at the time of issuance of the 2024 Bonds to the amount of the Reserve Requirement (defined herein), which amount is available to be transferred to the Bond Fund in the event of delinquencies in the payment of the Special Taxes, to the extent of such delinquencies. The Reserve Fund is required to be maintained at the Reserve Requirement from moneys available under the Fiscal Agent Agreement in order to further secure the payment of principal of and interest on the Bonds. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS – Parity Reserve Fund.”
Redemption of Bonds Before Maturity. The 2024 Bonds are subject to optional redemption, mandatory sinking fund redemption and special mandatory redemption from prepaid Special Taxes. See “THE BONDS – Redemption.”
Risks of Investment. See the section of this Official Statement entitled “SPECIAL RISK FACTORS” for a discussion of special factors that should be considered, in addition to the other matters set forth herein, in considering the investment quality of the 2024 Bonds.

Limited Obligation of the Authority. The Authority is not liable (except as specifically set forth in the Fiscal Agent Agreement) and the full faith and credit of the Authority is not pledged for the payment of the interest on, or principal of or redemption premiums, if any, on the 2024 Bonds. The 2024 Bonds are not secured by a legal or equitable pledge of or charge, lien or encumbrance upon any property of the Authority or any of its income or receipts, except the money in certain funds established under the Fiscal Agent Agreement, and neither the payment of the interest on nor principal of or redemption premiums, if any, on the 2024 Bonds is a general debt, liability or obligation of the Authority. The 2024 Bonds do not constitute an indebtedness of the Authority within the meaning of any constitutional or statutory debt limitation or restrictions and neither the Board, the Authority nor any officer or employee thereof are liable for the payment of the interest on or principal of or redemption premiums, if any, on the 2024 Bonds other than from the proceeds of the Special Taxes and the money in certain funds established under the Fiscal Agent Agreement, as provided in the Fiscal Agent Agreement.

7.1.c
Packet Pg. 162 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -5-
Summary of Information. Brief descriptions of certain provisions of the Fiscal Agent Agreement, the 2024 Bonds and certain other documents are included herein. The descriptions and summaries of documents herein do not purport to be comprehensive or definitive, and reference is made to each such document for the complete details of all its respective terms and conditions, copies of which are available for inspection at the office of the Authority. All statements herein with respect to certain rights and remedies are qualified by reference to laws and principles of equity relating to or affecting creditors’ rights generally. Capitalized terms used in this Official Statement and not otherwise defined herein have the meanings ascribed to such terms in the Fiscal Agent Agreement. The information and expressions of opinion herein speak only as of the date of this Official Statement and are subject to change without notice. Neither delivery of this Official Statement, any sale made hereunder, nor any future use of this Official Statement shall, under any circumstances, create any implication that there has been no change in the affairs of the Authority or the District since the date hereof.

SOURCES AND USES OF FUNDS
A summary of the estimated sources and uses of funds associated with the sale of the 2024 Bonds follows:

Sources of Funds:

Principal Amount of 2024 Bonds $
Less/Plus [Net] Original Issue Discount/Premium
Total $
Uses of Funds:

Deposit to Improvement Fund $
Deposit to Reserve Fund(1)
Costs of Issuance(2)
Total $
(1) Equals the amount, when added to the existing amount in the Reserve Fund, equals the Reserve Requirement for the Bonds.
(2) Includes fees of bond and disclosure counsel, initial fees, expenses and charges of the Fiscal Agent, costs of printing the Official Statement, administrative fees of the Authority, special tax consultant fees, appraiser fees, Underwriter’s discount, fees of the municipal advisor, and other costs of issuance.

7.1.c
Packet Pg. 163 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -6-

THE BONDS
Authority for Issuance
The 2024 Bonds are issued by the Authority pursuant to the Fiscal Agent Agreement, the Resolution of Issuance, and the Act.

On October 16, 2018, the Board adopted Resolution No. 2018-04 (the “Resolution of Formation”), which formed the District and followed a Resolution of Intention adopted by the Board on September 4, 2018. The District was established and authorized to incur bonded indebtedness in an aggregate principal amount not to exceed $90,000,000 at a special election in the District held on the same day. Under the provisions of the Act, since there were fewer than 12 registered voters residing within the District at a point during the 90-day period preceding the adoption of the Resolution of Formation, the qualified electors entitled to vote in the special election consisted of the various owners of all the taxable land in the District, who cast one vote for each gross acre or portion of an acre of land owned within the District. The landowners voted to incur the indebtedness and to approve the annual levy of Special Taxes to be collected within the District, for the purpose of paying for the Improvements, including repaying any indebtedness of the District and paying the administrative expenses of the District.

Description of the 2024 Bonds
Bond Terms. The 2024 Bonds will be dated as of and bear interest from the date of delivery thereof at the rates and mature in the amounts and years, as set forth on the cover page hereof. The 2024 Bonds are being issued in the denomination of $5,000 or any integral multiple thereof.

Interest on the 2024 Bonds will be payable semiannually on March 1 and September 1 of each year (each an “Interest Payment Date”), commencing September 1, 2024. The principal of the 2024 Bonds and premiums due upon the redemption thereof, if any, will be payable in lawful money of the United States of America at the principal corporate trust office of the Fiscal Agent in Los Angeles, California, or such other place as designated by the Fiscal Agent, upon presentation and surrender of the 2024 Bonds; provided that so long as any 2024 Bonds are in book-entry form, payments with respect to such 2024 Bonds will be made by wire transfer, or such other method acceptable to the Fiscal Agent, to DTC.

Book-Entry Only System. The 2024 Bonds are being issued as fully registered bonds, registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”), and will be available to ultimate purchasers under the book-entry system maintained by DTC.

Ultimate purchasers of 2024 Bonds will not receive physical certificates representing their interest in the 2024 Bonds. So long as the 2024 Bonds are registered in the name of Cede & Co., as nominee of DTC, references herein to the Owners will mean Cede & Co., and will not mean the ultimate purchasers of the 2024 Bonds. The Fiscal Agent will make payments of the principal, premium, if any, and interest on the 2024 Bonds directly to DTC, or its nominee, Cede & Co., so long as DTC or Cede & Co. is the registered owner of the 2024 Bonds.

Disbursements of such payments to DTC’s Participants is the responsibility of DTC and disbursements of such payments to the Beneficial Owners is the responsibility of DTC’s Participants and Indirect Participants, as more fully described herein. See “APPENDIX F – DTC and the Book-Entry System” below.

7.1.c
Packet Pg. 164 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -7-
Calculation and Payment of Interest. Interest on the 2024 Bonds will be computed on the basis of a 360-day year consisting of twelve 30-day months. Interest on the 2024 Bonds (including the final interest payment upon maturity or earlier redemption) is payable by check of the Fiscal Agent mailed on each Interest Payment Date by first class mail to the registered Owner thereof at such registered Owner’s address as it appears on the registration books maintained by the Fiscal Agent at the close of business on the Record Date preceding the Interest Payment Date, or by wire transfer made on such Interest Payment Date upon written instructions received by the Fiscal Agent on or before the Record Date preceding the Interest Payment Date, of any Owner of $1,000,000 or more in aggregate principal amount of 2024 Bonds; provided that so long as any 2024 Bonds are in book-entry form, payments with respect to such 2024 Bonds will be made by wire transfer, or such other method acceptable to the Fiscal Agent, to DTC. See “APPENDIX F – DTC and the Book-Entry System” below.

Each 2024 Bond will bear interest from the Interest Payment Date next preceding the date of authentication thereof unless (i) it is authenticated on an Interest Payment Date, in which event it will bear interest from such date of authentication, or (ii) it is authenticated prior to an Interest Payment Date and after the close of business on the Record Date preceding such Interest Payment Date, in which event it will bear interest from such Interest Payment Date, or (iii) it is authenticated prior to the Record Date preceding the first Interest Payment Date, in which event it will bear interest from the Dated Date; provided, however, that if at the time of authentication of a 2024 Bond, interest is in default thereon, such 2024 Bond will bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment thereon. So long as the 2024 Bonds are registered in the name of Cede & Co., as nominee of DTC, payments of the principal, premium, if any, and interest on the 2024 Bonds will be made directly to DTC, or its nominee, Cede & Co. Disbursements of such payments to DTC’s Participants is the responsibility of DTC and disbursements of such payments to the Beneficial Owners is the responsibility of DTC’s Participants and Indirect Participants, as more fully described herein. See “APPENDIX F – DTC and the Book-Entry System” below.

Redemption*
Optional Redemption. The 2024 Bonds are subject to optional redemption from any source of available funds prior to maturity, in whole, or in part among maturities as specified by the Authority and by lot within a maturity, on any date on or after September 1, ______, at the following respective redemption prices (expressed as percentages of the principal amount of the 2024 Bonds to be redeemed), plus accrued interest thereon to the date of redemption:

Redemption Dates
Redemption
Price
September 1, _____ through August 31, _____ 103%
September 1, _____ through August 31, _____ 102
September 1, _____ through August 31, _____ 101
September 1, _____ and thereafter 100
Mandatory Redemption From Prepayments. The 2024 Bonds are subject to mandatory redemption from prepayments of the Special Tax by property owners, in whole or in part among maturities as specified by the Authority and by lot within a maturity, on any Interest Payment Date at the following respective redemption prices (expressed as percentages of the ____________
* Preliminary; subject to change.

7.1.c
Packet Pg. 165 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -8-
principal amount of the 2024 Bonds to be redeemed), plus accrued interest thereon to the date of redemption:

Redemption Dates
Redemption
Price
September 1, 2024 through March 1, _____ 103%
September 1, _____ and March 1, _____ 102
September 1, _____ and March 1, _____ 101
September 1, _____ and Interest Payment Dates thereafter 100 Mandatory Sinking Fund Redemption. The 2024 Bonds maturing September 1, ______ and ______ (the “Term 2024 Bonds”) are subject to mandatory sinking payment redemption in part on September 1, ______ and September 1, _______, respectively, and on each _____1 thereafter to maturity, by lot, at a redemption price equal to 100% of the principal amount thereof to be redeemed, without premium, in the aggregate respective principal amounts as set forth in the following tables:

Term 2024 Bonds of _________
Mandatory
Redemption Date
(September 1)
Sinking Fund
Payment
$
Term 2024 Bonds of _________
Mandatory
Redemption Date
(September 1)
Sinking Fund
Payment
$
The amounts in the foregoing tables will be reduced pro rata, in order to maintain a substantially similar debt service profile, as a result of any prior partial optional redemption or mandatory redemption of the 2024 Bonds.

Purchase In Lieu of Redemption. In lieu of redemption, moneys in the Bond Fund may be used and withdrawn by the Fiscal Agent for purchase of Outstanding 2024 Bonds, upon the filing with the Fiscal Agent of an Officer’s Certificate requesting such purchase, at public or private sale as and when, and at such prices (including brokerage and other charges) as such Officer’s Certificate may provide, but in no event may 2024 Bonds be purchased at a price in excess of the principal amount thereof, plus interest accrued to the date of purchase.

Redemption Procedure by Fiscal Agent. The Fiscal Agent will cause notice of any redemption to be mailed by first class mail, postage prepaid, at least 20 days but not more than 60 days prior to the date fixed for redemption, to the Securities Depositories and to one or more Information Services, and to the respective registered Owners of any 2024 Bonds designated

7.1.c
Packet Pg. 166 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -9-
for redemption, at their addresses appearing on the 2024 Bond registration books in the Principal Office of the Fiscal Agent; but such mailing is not a condition precedent to such redemption and failure to mail or to receive any such notice, or any defect therein, will not affect the validity of the proceedings for the redemption of such 2024 Bonds.

Such notice will state the redemption date and the redemption price and, if less than all of the then Outstanding 2024 Bonds are to be called for redemption, will designate the CUSIP numbers and 2024 Bond numbers of the 2024 Bonds to be redeemed by giving the individual CUSIP number and 2024 Bond number of each 2024 Bond to be redeemed or will state that all 2024 Bonds between two stated 2024 Bond numbers, both inclusive, are to be redeemed or that all of the 2024 Bonds of one or more maturities have been called for redemption, will state as to any 2024 Bond called in part the principal amount thereof to be redeemed, and will require that such 2024 Bonds be then surrendered at the Principal Office of the Fiscal Agent for redemption at the said redemption price, and will state that further interest on such 2024 Bonds will not accrue from and after the redemption date.

Whenever provision is made in the Fiscal Agent Agreement for the optional redemption of less than all of the 2024 Bonds of any maturity, the Fiscal Agent as directed by the Authority will select the 2024 Bonds to be redeemed, from all 2024 Bonds or such given portion thereof of such maturity by lot in any manner which the Authority in its sole discretion deems appropriate.

Upon surrender of 2024 Bonds redeemed in part only, the Authority will execute and the Fiscal Agent will authenticate and deliver to the registered Owner, at the expense of the Authority, a new 2024 Bond or 2024 Bonds, of the same series and maturity, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the 2024 Bond or 2024 Bonds.

Rescission of Notice of Redemption. The Authority has the right to rescind any notice of the optional redemption of 2024 Bonds under the Fiscal Agent Agreement by written notice to the Fiscal Agent on or prior to two Business Days prior the date fixed for redemption. Any notice of redemption will be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption for the payment in full of the 2024 Bonds then called for redemption. Neither the Authority nor the Fiscal Agent will have any liability to the Owners or any other party related to or arising from such rescission of redemption.

Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the principal of, and interest and any premium on, the 2024 Bonds so called for redemption are deposited in the Bond Fund, such 2024 Bonds so called will cease to be entitled to any benefit under the Fiscal Agent Agreement other than the right to receive payment of the redemption price, and no interest will accrue thereon on or after the redemption date specified in such notice.

Transfer or Exchange of 2024 Bonds
So long as the 2024 Bonds are registered in the name of Cede & Co., as nominee of DTC, transfers and exchanges of 2024 Bonds will be made in accordance with DTC procedures. See “APPENDIX F – DTC and the Book-Entry System.” Any 2024 Bond may, in accordance with its terms, be transferred or exchanged by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such 2024 Bond for cancellation, accompanied by delivery of a duly written instrument of transfer in a form approved by the Fiscal Agent. Whenever any 2024 Bond or 2024 Bonds are surrendered for transfer or exchange, the Authority will execute and the Fiscal Agent will authenticate and deliver a new 2024 Bond or 2024 Bonds, for a like aggregate principal amount of 2024 Bonds of authorized

7.1.c
Packet Pg. 167 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -10-
denominations and of the same maturity. The cost for any services rendered or any expenses incurred by the Fiscal Agent in connection with any such transfer or exchange will be paid by the Authority. The Fiscal Agent will collect from the Owner requesting such transfer any tax or other governmental charge required to be paid with respect to such transfer or exchange.

No transfers or exchanges of 2024 Bonds will be required to be made (i) within 15 days prior to the date established by the Fiscal Agent for selection of 2024 Bonds for redemption or (ii) with respect to a 2024 Bond after such 2024 Bond has been selected for redemption.

SECURITY FOR THE BONDS
The Bonds (consisting of the 2024 Bonds, 2021 Bonds and any future Additional Bonds) are limited obligations and not general obligations of the Authority, payable solely from the Special Taxes and the funds pledged therefor under the Fiscal Agent Agreement. Neither the faith and credit of the Authority nor of the City, the State or any political subdivision thereof is pledged to the payment of the 2024 Bonds.

Although the Special Tax as described herein is levied against taxable parcels within the District, it does not constitute a personal indebtedness of the owners of property within the District. There is no assurance that the property owners will be financially able to pay the annual Special Tax or that they will pay such tax even if financially able to do so. See “SPECIAL RISK FACTORS.”

THE AUTHORITY HAS NO OBLIGATION TO REPLENISH THE RESERVE FUND AS

DESCRIBED HEREIN EXCEPT FROM SPECIAL TAXES, INCLUDING DELINQUENT SPECIAL TAXES THAT ARE PAID OR COLLECTED FROM FORECLOSURE SALES.

Limited Obligation
The 2024 Bonds are special, limited obligations of the Authority, payable and secured by the Special Tax and certain amounts held in funds under the Fiscal Agent Agreement. The 2024 Bonds do not constitute a charge against the general credit of the Authority, and under no circumstances is the Authority obligated to pay principal of or redemption premiums, if any, or interest on the 2024 Bonds except from the Special Taxes and other moneys pledged thereto under the Fiscal Agent Agreement. Neither the City, the State nor any public agency (other than the Authority) is obligated to pay the principal of or redemption premiums, if any, or interest on the 2024 Bonds, and neither the faith and credit nor the taxing power of the Authority, the City, the State or any public agency thereof is pledged to the payment of the principal of or redemption premiums, if any, or interest on the 2024 Bonds. The payment of the principal of or redemption premiums, if any, or interest on the 2024 Bonds does not constitute a debt, liability or obligation of the Authority, the City, the State or any public agency (other than the Authority, to the limited extent set forth in the Fiscal Agent Agreement).

Pledge of Special Tax Revenues and Other Amounts
All of the Special Tax Revenues and all moneys deposited in the Bond Fund and, until disbursed as provided in the Fiscal Agent Agreement, in the Improvement Fund and the Special Tax Fund are pledged to secure the repayment of the Bonds. Such pledge shall constitute a first lien on the Special Tax Revenues and said amounts. The Special Tax Revenues and all moneys deposited into such funds (except as otherwise provided in the Fiscal Agent

7.1.c
Packet Pg. 168 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -11-
Agreement) are dedicated in their entirety to the payment of the principal of, including any mandatory sinking fund payments, and interest and any premium on, the Bonds as provided in the Fiscal Agent Agreement and in the Act until all of the Bonds have been paid and retired or until moneys or Federal Securities have been set aside irrevocably for that purpose in accordance with the Fiscal Agent Agreement.

The Bonds are also secured by a first pledge of all moneys deposited in the Reserve Fund established for the Bonds under the Fiscal Agent Agreement. See “Parity Reserve Fund” below.

Amounts in a Costs of Issuance Fund created for any Series of Bonds are not pledged to the repayment of any Series of the Bonds. The facilities acquired with the proceeds of the Bonds are not in any way pledged to pay the debt service on the Bonds. Any proceeds of condemnation, destruction or other disposition of any facilities financed with the proceeds of the Bonds are not pledged to pay the debt service on the Bonds and are free and clear of any lien or obligation imposed hereunder.

Special Taxes
The Bonds are payable from and secured by proceeds of the Special Taxes received by the Authority, including all scheduled payments and delinquent payments thereof, interest and penalties thereon and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes, less an amount equal to the Administrative Expense Priority, and net of administration charges of the County (the “Special Tax Revenues”). “Administrative Expense Priority” is the amount $26,010 for Fiscal Year 2023-24, and for each subsequent year, an amount equal to the preceding fiscal year’s Administrative Expense Priority plus an additional 2% of such amount.

The Special Tax can only be levied on “Developed Property,” which is defined in the Special Tax Formula as parcels in the District for which a building permit for new construction was issued by the City prior to June 1 of the preceding Fiscal Year.

A Special Tax applicable to each taxable parcel in the District will be levied and collected according to the tax amount determined by the Board of the Authority, acting as the legislative body of the District, through the application of the Special Tax Formula prepared by Goodwin Consulting Group, Inc., Sacramento, California (the “Special Tax Consultant”) and set forth in APPENDIX B hereto for all taxable properties in the District. Prior to remittance of the Special Tax collections to the Authority, the County deducts and retains a County administration fee.

Interest and principal on the Bonds is payable from the annual Special Tax Revenues to be paid to the Authority from Special Tax levies and collections on taxable property within the District, from amounts held in the funds and accounts established under the Fiscal Agent Agreement and from the proceeds, if any, from the sale of such property for delinquency of such Special Taxes.

The Special Taxes are exempt from the property tax limitation of Article XIIIA of the California Constitution, pursuant to Section 4 thereof as a “special tax” authorized by a twothirds vote of the qualified electors. The levy of the Special Taxes was authorized by the Authority pursuant to the Act in an amount determined according to the Special Tax Formula approved by the Authority. See “–Special Tax Methodology” below and “APPENDIX B – Rate and Method of Apportionment of Special Tax.”

7.1.c
Packet Pg. 169 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -12-
All of the Special Tax Revenues and all moneys deposited in the Bond Fund, the Reserve Fund and, until disbursed as provided in the Fiscal Agent Agreement, in the Improvement Fund and the Special Tax Fund are pledged to secure the repayment of the Bonds. Such pledge will constitute a first lien on the Special Tax Revenues and said amounts.

The Special Tax Revenues and all moneys deposited into the such funds (except as otherwise provided in the Fiscal Agent Agreement) are dedicated to the payment of the principal of, including any mandatory sinking fund payments, and interest and any premium on, the Bonds as provided in the Fiscal Agent Agreement and in the Act until all of the Bonds have been paid and retired or defeased in accordance with the Fiscal Agent Agreement.

The amount of Special Taxes that the District may levy in any year, and from which principal and interest on the Bonds is to be paid, is strictly limited by the maximum rates approved by the qualified electors within the District which are set forth as the annual “Maximum Special Tax” in the Special Tax Formula. Under the Special Tax Formula, Special Taxes for the purpose of making payments on the Bonds will be levied annually in an amount not in excess of the Maximum Special Tax. The Special Taxes and any interest earned on the Special Taxes constitute a trust fund for the principal of and interest on the Bonds pursuant to the Fiscal Agent Agreement and, so long as the principal of and interest on the Bonds remains unpaid, the Special Taxes and investment earnings thereon will not be used for any other purpose, except as permitted by the Fiscal Agent Agreement, and will be held in trust for the benefit of the Owners thereof and will be applied pursuant to the Fiscal Agent Agreement. The Special Tax Formula apportions the Special Tax Requirement (as defined below) among the Developed Property within the District according to the rate and methodology set forth in the Special Tax Formula. See “– Special Tax Methodology,” below.

The Authority will levy the Special Taxes in an amount at least sufficient to pay the Special Tax Requirement (as defined below). Because each Special Tax levy is limited to the Maximum Special Tax rates authorized as set forth in the Special Tax Formula, no assurance can be given that, in the event of Special Tax delinquencies, an amount equal to the Special Tax Requirement will in fact be collected in any given year. See “SPECIAL RISK FACTORS – Tax Delinquencies.”
Amounts in the Costs of Issuance Fund are not pledged to the repayment of the Bonds.

The facilities acquired with the proceeds of the Bonds are not in any way pledged to pay the debt service on the Bonds. Any proceeds of condemnation, destruction or other disposition of any facilities financed with the proceeds of the Bonds are not pledged to pay the debt service on the Bonds and are free and clear of any lien or obligation imposed under the Fiscal Agent Agreement.

Special Tax Methodology
The Special Tax authorized under the Act applicable to land within the District will be levied and collected according to the tax liability determined by the Authority through the application of the appropriate amount or rate as described in the Special Tax Formula.

Capitalized terms set forth in this section and not otherwise defined have the meanings set forth in the Special Tax Formula. See “APPENDIX B – Rate and Method of Apportionment of Special Tax” for a copy of the Special Tax Formula, as supplemented.

Only Developed Property is Subject to the Special Tax. The Special Tax can only be levied only on Developed Property, there is no authority to levy on undeveloped property. As noted above, Developed Property is comprised of taxable parcels in the District for which a

7.1.c
Packet Pg. 170 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -13-
building permit for new construction was issued by the City prior to June 1 of the preceding Fiscal Year. The Special Tax will be levied, up to 100% of the Maximum Special Tax assigned to each Parcel, until the amount levied is equal to the Special Tax Requirement.

Determination of Special Tax Requirement. Each year, the Authority will determine the Special Tax Requirement of the District for the upcoming Fiscal Year. The “Special Tax Requirement” includes the following items:
(i) debt service on the bonds issued for the District;
(ii) administrative expenses and County fees;
(iii) any amounts needed to replenish bond reserve funds and to pay for Bond delinquencies in the previous Fiscal Year; and
(iv) pay-as-you-go expenditures for authorized improvements.

The Special Tax Requirement is the basis for the amount of Special Tax to be levied within the District. In no event may the Authority levy a Special Tax in any year above the Maximum Special Tax identified for each parcel set forth in the Special Tax Formula.

The Special Tax Formula designates an initial Tax Zone within the District, consisting of all land in the District at the time of formation. Additional Tax Zones may be created when property is annexed to the District, and separate Maximum Special Taxes will be identified for property within the new Tax Zone at the time of annexation. The Assessor’s Parcels included within a new Tax Zone established when such Parcels are annexed to the CFD will be identified by Assessor’s Parcel Number in the Unanimous Approval Form that is signed by the owner(s) of the Parcels at the time of annexation. Each Fiscal Year, the Administrator will identify the current Assessor’s Parcel number for all Parcels of Taxable Property within the District and determine within which Tax Zone each Assessor’s Parcel is located. Upon each annexation of property into the District, the Administrator will update “Attachment 1” to the Special Tax Formula to include the new Assessor’s Parcels number(s). No Special Tax will be levied on Public Property, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act. “Public Property” means any property within the boundaries of the District that is owned by or irrevocably offered for dedication to the federal government, State of California or other local governments or public agencies. See “APPENDIX B – Rate and Method of Apportionment of Special Tax,” for identification of the tax zones set forth in the Special Tax Formula.

Maximum Special Tax Rates. The base year Maximum Special Tax rates were set for Fiscal Year 2017-18. Beginning July 1, 2018 and each July 1 thereafter, all of the Maximum Special Taxes increases by 2% of the amount in effect for the prior Fiscal Year.

7.1.c
Packet Pg. 171 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -14-
The Maximum Special Tax applicable to the Developed Property is established in the Special Tax Formula for Fiscal Year 2022-23 as follows:

West Patterson Financing Authority
Community Facilities District No. 2018-1 (Villages of Patterson) Maximum Special Tax for Fiscal Year 2024-25
Land Use
Class
Maximum Special Tax
Fiscal Year 2024-25(1)
Single Family Detached Property $1,889.58 per Unit
Single Family Attached Property $1,137.20 per Unit
Multi-Family Lower Density Property $804.08 per Unit
Multi-Family Higher Density Property $620.30 per Unit
Affordable Single Family Property $557.12 per Unit
Affordable Multi-Family Property $367.58 per Unit
Non-Residential Property $3,446.06 per Net Acre
(1) On each July 1, all of the Maximum Special Tax shown in the table increases by an amount equal to 2% of the amount in effect for the prior fiscal year.

Source: Goodwin Consulting Group, Inc.

Limitation on Increases in Special Tax Levy. If owners are delinquent in the payment of Special Taxes, the Authority may not increase Special Tax levies to make up for delinquencies for prior Fiscal Years above the Maximum Special Tax rates specified for each category of property within the District. In addition, Section 53321(d) of the Act provides that the special tax levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within a community facilities district by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. In cases of significant delinquency, these limitations may result in defaults in the payment of principal of and interest on the Bonds. See “SPECIAL RISK FACTORS.”
Manner of Collection. The Special Taxes are collected for the Authority by the County in the same manner and at the same time as ad valorem property taxes. However, the Authority may directly bill the Special Tax, may collection Special Taxes at a different time or in a different manner, and may collection delinquent Special Taxes through foreclosure or other available methods.

Prepayment of the Special Tax. The Special Tax obligation applicable to an Assessor’s Parcel in the District may be prepaid and the obligation of the Assessor’s Parcel to pay the Special Tax permanently satisfied, in full or in part, under the conditions described in the Special Tax Formula, 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. The Prepayment Amount is generally calculated based on the Bond Redemption Amount plus the Remaining Facilities Amount, Redemption Premium, Defeasance Requirement and other fees and expenses, all as specified in APPENDIX B.

Two multifamily parcels (APNs 047-059-011 and 047-059-012) improved with 138 completed units have prepaid the Special Taxes and are therefore not included in District information contained in this Official Statement.

7.1.c
Packet Pg. 172 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -15-
Termination of the Special Tax. The Special Tax will be levied and collected until principal and interest on Bonds have been repaid and authorized facilities to be constructed directly from Special Tax proceeds have been completed, however in no event shall Special Taxes be levied after Fiscal Year 2071-72.

Levy of Annual Special Tax; Maximum Special Tax
The annual Special Tax will be calculated by the Authority and levied to provide money for debt service on the Bonds, replenishment of the Reserve Fund, certain delinquencies, administration of the District, and for payment of pay-as-you-go expenditures (to the extent permitted by the Authority) of the authorized District-funded facilities not funded from Bond proceeds. In no event may the Authority levy a Special Tax in any year above the Maximum Special Tax identified for each parcel as set forth in the Special Tax Formula.

Each Fiscal Year prior to the sale of Bonds, the Maximum Special Tax is levied on all Parcels of Developed Property within the District. Each Fiscal Year after Bonds have been sold, the Administrator will determine the Special Tax Requirement, and the Special Tax will be levied Proportionately on each Parcel of Developed Property up to 100% of the Maximum Special Tax assigned to each Parcel of Developed Property until the amount levied is equal to the Special Tax Requirement. See “APPENDIX B – Rate and Method of Apportionment of Special Tax.” The Special Tax Formula provides that the Maximum Special Tax may be increased by 2% in each Fiscal Year. See “– Special Tax Methodology – Maximum Special Tax Rates” above. The Authority has covenanted in the Fiscal Agent Agreement to apply the 2% increase in each Fiscal Year.

The Authority has also covenanted in the Fiscal Agent Agreement to fix and levy the amount of Special Taxes within the District required for the payment of principal of and interest on any outstanding Bonds of the District becoming due and payable during the ensuing year, including any necessary replenishment or expenditure of the amounts within the Reserve Fund and an amount estimated to be sufficient to pay the Administrative Expenses during such year, all in accordance with the Special Tax Formula. The Special Tax is authorized to be levied in an amount not to exceed the Maximum Special Tax levy as described in the Special Tax Formula notwithstanding that a lower amount is sufficient to pay debt service on the Bonds. See “APPENDIX B – Rate and Method of Apportionment of Special Tax” for a copy of the Special Tax Formula.

The Special Tax Formula provides a mechanism whereby the Authority may utilize the pay-as-you-go component to pay for a portion of the cost of Improvements not funded by proceeds of the bonds issued for the District. In the event the pay-as-you-go component is utilized, proceeds of the annual Special Tax levy will first be used to pay the Special Tax Requirement (which include debt service payments on the Bonds) other than pay-as-you-go expenditures. See “THE IMPROVEMENTS” and “SPECIAL TAX REVENUE AND VALUE OF PROPERTY WITHIN THE DISTRICT.”
Special Tax Fund
When received, the Special Tax Revenues are required under the Fiscal Agent Agreement to be deposited into a Special Tax Fund to be held by the Treasurer in trust for the benefit of the Authority and the Owners of the Bonds. Within the Special Tax Fund, the Authority will establish and maintain a Prepayment Account and a Surplus Account, to the credit of which the Authority will respectively deposit prepayments of Special Taxes and

7.1.c
Packet Pg. 173 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -16-
surplus Special Tax Revenue, if any, as described below. Moneys in the Special Tax Fund will be disbursed as provided below and, pending any disbursement, will be subject to a lien in favor of the Owners of the Bonds.

As soon as practicable after the receipt by the Authority of any Special Tax Revenues, other than from prepayments of Special Taxes, or the transfer of amounts to the Special Tax Fund pursuant to the terms of the Fiscal Agent Agreement, but no later than ten Business Days after such receipt or transfer, the Treasurer shall withdraw from the Special Tax Fund and transfer to the Fiscal Agent:
(i) for deposit in the Bond Fund, an amount, taking into account any amounts then on deposit in the Bond Fund, such that the amount in the Bond Fund equals the principal, premium, if any, and interest due on the Bonds during the thencurrent Bond Year; and (ii) for deposit in the Reserve Fund, an amount, taking into account amounts then on deposit in the Reserve Fund, so that the amount in the Reserve Fund equals the Reserve Requirement.

At such time as deposits to the Special Tax Fund other than from prepayment of Special Taxes equal the principal, premium if any, and interest becoming due on the Bonds for the current Bond Year and the amount needed to restore the Reserve Fund balance to the Reserve Requirement, the amount in the Special Tax Fund in excess of such amount shall be transferred by the Authority, on or after September 2nd of each year, to the Surplus Account and such moneys transferred shall be free of the pledge for payment of the Bonds.

Prepayment Account. As soon as practicable after the receipt by the Authority of any Special Tax Revenues derived from prepayments of the Special Tax, the Authority shall, from the money in the Special Tax Fund constituting such prepayments, deposit in the Prepayment Account the amount of money constituting such prepayments, and all money in the Prepayment Account shall be used and withdrawn by the Authority for deposit in the Bond Fund to implement a mandatory redemption of Bonds.

Surplus Account. From time to time, the Authority may withdraw from the Surplus Account of the Special Tax Fund amounts needed to pay Administrative Expenses in excess of the Administrative Expense Priority, costs of the acquisition and construction of Facilities, or any other District costs authorized under the Act. Moneys in the Surplus Account may, at the Authority’s discretion, also be used to pay the principal of, premium, if any, and interest on the Bonds or to replenish the Reserve Fund to the amount of the Reserve Requirement.

Delinquent Payments of Special Tax; Covenant for Superior Court Foreclosure The Special Tax will be collected in the same manner and the same time as ad valorem property taxes, except at the Authority’s option, the Special Taxes may be billed directly to property owners or collected at a different time to meet the Authority’s financial obligations. In the event of a delinquency in the payment of any installment of Special Taxes, the Authority is authorized by the Act to order institution of an action in superior court to foreclose the lien therefor.

The Authority has covenanted in the Fiscal Agent Agreement with and for the benefit of the Owners of the Bonds that it will annually on or before September 1 of each year review the

7.1.c
Packet Pg. 174 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -17-
public records of the County relating to the collection of the Special Tax in order to determine the amount of the Special Tax collected in the prior Fiscal Year, and if the Authority determines on the basis of such review that the amount so collected is deficient by more than 5% of the total amount of the Special Tax levied in such Fiscal Year, it will within 30 days thereafter institute foreclosure proceedings as authorized by the Act in order to enforce the lien of the delinquent installment of the Special Tax against each separate lot or parcel of land in the District for which such installment of the Special Tax is delinquent, and will diligently prosecute and pursue such foreclosure proceedings to judgment and sale; provided, that if the Authority determines on the basis of such review that the amount so collected is (i) deficient by less than 5% of the total amount of the Special Tax levied in the District in such Fiscal Year, but that property owned by any single property owner in the District is delinquent by more than $5,000 with respect to the Special Tax due and payable by such property owner in such Fiscal Year, or (ii) as to any property owned by any single property owner in the District, delinquent cumulatively by more than $3,000 with respect to the current and past Special Tax due (irrespective of the total delinquencies in the District), then the Authority will institute, prosecute and pursue such foreclosure proceedings in the time and manner provided in the Fiscal Agent Agreement against each such property owner.

Under the Act, foreclosure proceedings are instituted by the bringing of an action in the superior court of the county in which the parcel lies, naming the owner and other interested persons as defendants. The action is prosecuted in the same manner as other civil actions. In such action, the real property subject to the special taxes may be sold at a judicial foreclosure sale for a minimum price, which will be sufficient to pay or reimburse the delinquent special taxes.

The owners of the Bonds benefit from the Reserve Fund established pursuant to the Fiscal Agent Agreement; however, if delinquencies in the payment of the Special Taxes with respect to the Bonds are significant enough to completely deplete the amounts in the reserve accounts in the Reserve Fund, there could be a default or a delay in payments of principal and interest to the owners of the Bonds pending prosecution of foreclosure proceedings and receipt by the Authority of the proceeds of foreclosure sales. Provided that it is not levying the Special Tax at the Maximum Special Tax rates set forth in the Special Tax Formula, the Authority may adjust (but not to exceed the Maximum Special Tax and subject to the limitation described under the caption “–Special Tax Methodology – Limitation on Increases in Special Tax Levy” above) the Special Taxes levied on all property within the District subject to the Special Tax to provide an amount required to pay debt service on the Bonds and to replenish the reserve accounts in the Reserve Fund.

Under current law, a judgment debtor (property owner) has at least 120 days from the date of service of the notice of levy in which to redeem the property to be sold. If a judgment debtor fails to redeem and the property is sold, his or her only remedy is an action to set aside the sale, which must be brought within 90 days of the date of sale. If, as a result of such an action a foreclosure sale is set aside, the judgment is revived and the judgment creditor is entitled to interest on the revived judgment as if the sale had not been made (California Code of Civil Procedure Section 701.680).

Foreclosure by court action is subject to normal litigation delays, the nature and extent of which are largely dependent upon the nature of the defense, if any, put forth by the debtor and the condition of the calendar of the superior court of the county. Such foreclosure actions can be stayed by the superior court on generally accepted equitable grounds or as the result of the debtor’s filing for relief under the Federal bankruptcy laws. The Act provides that, upon

7.1.c
Packet Pg. 175 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -18-
foreclosure, the Special Tax lien will have the same lien priority as is provided for ad valorem taxes and special assessments. See “SPECIAL TAX REVENUE AND VALUE OF PROPERTY WITHIN THE DISTRICT – Overlapping Liens and Priority of Lien.” No assurances can be given that the real property subject to a judicial foreclosure sale will be sold or, if sold, that the proceeds of sale will be sufficient to pay any delinquent Special Tax installment. The Act does not require the District to purchase or otherwise acquire any lot or parcel of property foreclosed upon if there is no other purchaser at such sale.

Section 53356.6 of the Act requires that property sold pursuant to foreclosure under the Act be sold for not less than the amount of judgment in the foreclosure action, plus postjudgment interest and authorized costs, unless the consent of the owners of 75% of the outstanding Bonds is obtained. However, under Section 53356.6 of the Act, the District, as judgment creditor, is entitled to purchase any property sold at foreclosure using a “credit bid,” where the District could submit a bid crediting all or part of the amount required to satisfy the judgment for the delinquent amount of the Special Tax. If the District becomes the purchaser under a credit bid, the District must pay the amount of its credit bid into the redemption fund established for the Bonds, but this payment may be made up to 24 months after the date of the foreclosure sale.

Parity Reserve Fund
In order to further secure the payment of principal of and interest on the Bonds, a Reserve Fund (the “Reserve Fund”) was established and is held by the Fiscal Agent pursuant to the Fiscal Agent Agreement. The amount on deposit in the Reserve Fund will be increased from proceeds of the 2024 Bonds to the amount of the “Reserve Requirement” for the outstanding Bonds, which as of any date of calculation is an amount equal to the least of (i) Maximum Annual Debt Service (as defined in the Fiscal Agent Agreement) on the Bonds, (ii) 125% of average Annual Debt Service (as defined in the Fiscal Agent Agreement) as of the date of issuance of the Bonds, or (iii) 10% of the initial offering price to the public of the Bonds.

Separate reserve accounts for each series of Bonds are established within the Reserve Fund for accounting purposes.

All amounts deposited in the Reserve Fund will be used and withdrawn by the Fiscal Agent solely for the purpose of making transfers to the Bond Fund in the event of any deficiency at any time in the Bond Fund of the amount then required for payment of the principal of, and interest on, the Bonds. Whenever transfer is made from a Reserve Account in the Reserve Fund to the Bond Fund due to a deficiency in the Bond Fund, the Fiscal Agent will provide written notice thereof to the Authority.

Whenever, on the Business Day prior to any Interest Payment Date, the amount in the Reserve Fund exceeds the then applicable Reserve Requirement, the Fiscal Agent will provide notice to the Authority of the amount of the excess. The Authority will advise the Fiscal Agent of the amount, if any, of any transfer required to be made under the Fiscal Agent Agreement, and otherwise direct the Fiscal Agent to transfer an amount equal to the excess from the Reserve Fund to the Improvement Fund, if the Improvements have not been completed as of the date of such transfer, or if the Improvements have been completed, to the Bond Fund to be used for the payment of the principal of and interest on the 2024 Bonds in accordance with the Fiscal Agent Agreement. However, to the extent that such excess results from the prepayment of Special Taxes and redemption of 2024 Bonds in accordance with the Fiscal Agent Agreement, such

7.1.c
Packet Pg. 176 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -19-
amount will be transferred to the Prepayment Account and applied to the corresponding redemption of 2024 Bonds.

Investment earnings on amounts in the reserve accounts in the Reserve Fund may be withdrawn therefrom for purposes of making payment to the federal government to comply with the rebate provisions of the Fiscal Agent Agreement.

Whenever the balance in a reserve account in the Reserve Fund exceeds the amount required to redeem or pay the outstanding bonds, including interest accrued to the date of payment or redemption and premium, if any, due upon redemption, and make any other transfer required under the Fiscal Agent Agreement, the Fiscal Agent will transfer the amount therein to the Bond Fund to be applied, on the next succeeding Interest Payment Date, to the payment and redemption of all of the outstanding bonds of the series of bonds to which the excess relates. If the amount so transferred from a reserve account in the Reserve Fund to the Bond Fund exceeds the amount required to pay and redeem the outstanding bonds of such series, the balance therein will be transferred to the Authority, after payment of any amounts due the Fiscal Agent, to be used for any lawful purpose of the Authority.

Moneys in the reserve accounts in the Reserve Fund will be invested and deposited in accordance with the Fiscal Agent Agreement and investment income thereon will be subject to rebate requirements under applicable tax laws.

Bond Fund
A Bond Fund (the “Bond Fund”) for the Bonds will be established under the Fiscal Agent Agreement, to be held by the Fiscal Agent. Moneys in the Bond Fund will be held in trust by the Fiscal Agent for the benefit of the Owners of the Bonds, will be disbursed for the payment of the principal of, and interest and any premium on, the Bonds as provided in the Fiscal Agent Agreement, and, pending such disbursement, will be subject to a lien in favor of the Owners of the Bonds.

Within the Bond Fund there will be established the “Prepayment Account,” which will be used exclusively for the administration of any prepayments of Special Taxes to assure the timely redemption of Bonds. Monies in the Prepayment Account will be used to redeem Bonds on the redemption date specified in the notice to the Fiscal Agent given pursuant to the Fiscal Agent Agreement. In the event all of the Special Taxes are prepaid in full, the Prepayment Account will be closed.

On each Interest Payment Date, the Fiscal Agent will withdraw from the Bond Fund and pay to the Owners of the Bonds the principal of, and interest and any premium, then due and payable on the Bonds, including any amounts due on the Bonds by reason of the sinking payments or any optional redemption of the Bonds.

If amounts in the Bond Fund are insufficient to pay regularly scheduled payments of principal of and interest on any series of bonds, the Fiscal Agent shall withdraw from the Reserve Fund established for such series of bonds to the extent of any funds therein, the amount of such insufficiency, and the Fiscal Agent will provide written notice to the Authority of the amounts so withdrawn from the Reserve Fund. Amounts so withdrawn from the Reserve Fund will be deposited in the Bond Fund.

7.1.c
Packet Pg. 177 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -20-
If, after the foregoing transfer, there are insufficient funds in the Bond Fund to make the payments provided for to pay regularly scheduled payments of principal of and interest on the Bonds, the Fiscal Agent will apply the available funds:
(i) first to the payment of interest on the Bonds,
(ii) then to the payment of principal due on the Bonds other than by reason of sinking payments, and
(iii) then to payment of principal due on the Bonds by reason of sinking payments.

Any sinking payment not made as scheduled will be added to the sinking payment to be made on the next sinking payment date.

Moneys in the Bond Fund shall be invested and deposited in accordance with the Agreement. If ten days before any Interest Payment Date it appears to the Fiscal Agent that there is a danger of deficiency in the Bond Fund and that the Fiscal Agent may be unable to pay regularly scheduled debt service on the Bonds in a timely manner, the Fiscal Agent will report to the Authority such fact. The Authority covenants to increase the levy of the Special Taxes in the next Fiscal Year (subject to the maximum amount authorized by the Resolution of Formation and set forth in the Special Tax Formula) in accordance with the procedures set forth in the Act for the purpose of curing Bond Fund deficiencies.

Improvement Fund
Under the Fiscal Agent Agreement, there is established an Improvement Fund, which is to be held in trust by the Fiscal Agent and will be disbursed as provided in the Fiscal Agent Agreement for the payment or reimbursement of the costs of the construction and acquisition of the Improvements. Interest earnings from the investment of amounts in the Improvement Fund will be retained in the Improvement Fund to be used for the purposes of the Improvement Fund.

Prior to disbursement, amounts on deposit in the Improvement Fund will be subject to a lien in favor of the Owners of the Bonds.

Disbursements from the Improvement Fund will be made by the Fiscal Agent upon receipt of a certificate from the Authority substantially in the form attached to the Fiscal Agent Agreement, which will (i) set forth the amount required to be disbursed, the purpose for which the disbursement is to be made, the person to which the disbursement is to be paid and state that such disbursement is for a reimbursable cost; and (ii) certify that no portion of the amount then being requested to be disbursed was set forth in any certificate previously filed requesting disbursement.

Upon completion of the Improvements, the Fiscal Agent will transfer the amount, if any, remaining in the Improvement Fund to the Bond Fund for application to the payment of principal of and interest on the Bonds in accordance with the Fiscal Agent Agreement, and the Improvement Fund will be closed. See “THE IMPROVEMENTS.” Parity Bonds
The Resolution of Formation authorizes the issuance of up to $90,000,000 of bonds, of which the 2021 Bonds represented the first series and the 2024 Bonds represent the second

7.1.c
Packet Pg. 178 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -21-
series. The Authority expects that it will, by a Supplemental Agreement to the Fiscal Agent Agreement, authorize the issuance of one or more additional series of bonds payable from Special Taxes and secured by the Special Taxes on a parity with the 2021 Bonds and 2024 Bonds (“Additional Bonds”), as development progresses in the District and upon compliance by the Authority with the conditions set forth in the Fiscal Agent Agreement, which include the following:
(i) No default in the Bonds will have occurred and then be continuing; (ii) The Supplemental Agreement providing for the issuance of the Additional Bonds will specify the purpose for which such Additional Bonds are being issued, which will be to provide moneys needed to construct and acquire the facilities, by depositing into the Improvement Fund the proceeds of such Additional Bonds to be so applied, or to refund all or part of the Bonds or Additional Bonds then outstanding, by depositing in trust with the Fiscal Agent, moneys or Federal Securities in the amount necessary to discharge all liability of the Authority with respect to the bonds to be refunded as provided in the Fiscal Agent Agreement;
(iii) The Supplemental Agreement providing for the issuance of the Additional Bonds will also require that there be deposited into a subaccount in the Reserve Fund, or into a separate parity reserve fund, forthwith upon the receipt of the proceeds of the sale of such series, an amount at least equal to the reserve requirement with respect to the outstanding Additional Bonds of the series to which it relates, which deposit may be made from the proceeds of the sale of such series or by the Authority or from both such sources, as provided in the Supplemental Agreement;
(iv) The Additional Bonds of such series will be payable as to principal on September 1 in each year in which principal becomes due, and will be payable as to interest semiannually on March 1 and September 1, except that the first installment of interest may be payable on either March 1 or September 1; (v) Fixed serial maturities or sinking fund payments, or any combination thereof, will be established in amounts sufficient to provide for the retirement of all of the Additional Bonds of such series on or before their respective maturity dates; (vi) After giving effect to the issuance of such series of Additional Bonds:
(a) For each Bond Year, projected Maximum Special Taxes (net of County administration charges) in each Fiscal Year are equal to or greater than one hundred ten percent (110%) of maximum Debt Service due in the Bond Year that begins in the corresponding Fiscal Year; and
(b) The aggregate value of all parcels in the District subject to the Special Tax and not delinquent in the payment of any Special Taxes then due and owing, including then existing improvements and any facilities to be constructed or acquired with the proceeds of the proposed series of Bonds, as determined by an MAI appraisal or, in the alternative, the assessed value of all such parcels and improvements thereon (and improvements to be financed from proceeds of the Bonds proposed to be issued) as shown on the then current County tax roll, or by a combination of both methods is at least 4.00 times the sum of (1) the aggregate principal amount of all Bonds then outstanding plus

7.1.c
Packet Pg. 179 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -22-
(2) the aggregate principal amount of the series of Bonds proposed to be issued, plus (3) the aggregate principal amount of any bonds then outstanding and payable from assessments which are a lien against property in the District, plus (4) a portion of the aggregate principal amount of all Mello-Roos bonds, other than Bonds then outstanding, and payable at least partially from special taxes to be levied on parcels of land subject to the Special Tax within the District (the “Other Mello-Roos Bonds”) equal to the aggregate principal amount of the Other Mello-Roos Bonds multiplied by a fraction, the numerator of which is the amount of special taxes levied for the Other Mello-Roos Bonds on parcels of land within the District subject to the Special Tax and not delinquent in the payment of any Special Taxes then due and owing, and the denominator of which is the total amount of special taxes levied for the Other Mello-Roos Bonds on all parcels of land subject to the Special Tax against which the special taxes are levied to pay the Other Mello-Roos Bonds and not delinquent in the payment of any Special Taxes then due and owing (such fraction to be determined based upon the special taxes which could be levied the year in which maximum annual debt service on the Other Mello-Roos Bonds occurs), based upon information from the most recent available fiscal year.

Notwithstanding the foregoing, if a developer or developers of property in the District deposit with the Fiscal Agent cash or a letter of credit from a reputable bank which is acceptable to the Authority, in an amount (the “Letter of Credit Amount”) equal to the shortfall in the valuation of the property in the District to meet the value-to-lien requirement set forth in the preceding paragraph, the Letter of Credit Amount will be excluded from the debt computation under the foregoing clause (vi)(b). Any such letter of credit deposited with the Fiscal Agent will remain in effect, and the Letter of Credit Amount will not be reduced or the letter of credit thereafter terminated, until satisfaction of the foregoing clause (vi)(b) with respect to the amount by which the letter of credit is proposed to be reduced, or with respect to the Letter of Credit Amount in connection with the proposed termination of the letter of credit.

Nothing in the Fiscal Agent Agreement will prevent or be construed to prevent the Supplemental Agreement providing for the issuance of Additional Bonds from pledging or otherwise providing, in addition to the security given or intended to be given by the Fiscal Agent Agreement, additional security for the benefit of such Additional Bonds or any portion thereof.

Discharge of Fiscal Agent Agreement
Under the Fiscal Agent Agreement, if the Authority pays and discharges the entire indebtedness on all or any portion of the bonds outstanding under the Fiscal Agent Agreement in any one or more of the following ways:
(i) by well and truly paying or causing to be paid the principal of, and interest and any premium on, such outstanding bonds, as and when the same become due and payable; (ii) by depositing with the Fiscal Agent, in trust, at or before maturity, money which, together with (in the event that all of the bonds are to be defeased) the amounts then on deposit in the funds and accounts provided for in the Fiscal Agent Agreement, is fully sufficient to pay such outstanding bonds, including all principal, interest and redemption premiums; or (iii) by irrevocably depositing with the Fiscal Agent, in trust, cash and federal securities in such amount as the Authority determines as confirmed by an independent certified

7.1.c
Packet Pg. 180 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -23-
public accountant will, together with the interest to accrue thereon and (in the event that all of the bonds are to be defeased) moneys then on deposit in the fund and accounts provided for in the Fiscal Agent Agreement, be fully sufficient to pay and discharge the indebtedness on such bonds (including all principal, interest and redemption premiums) at or before their respective maturity dates;
and if such bonds are to be redeemed prior to the maturity thereof, notice of such redemption will have been given as in the Fiscal Agent Agreement provided or provision satisfactory to the Fiscal Agent will have been made for the giving of such notice, then, at the election of the Authority, and notwithstanding that any bonds will not have been surrendered for payment, the pledge of the Special Taxes and other funds provided for in the Fiscal Agent Agreement and all other obligations of the Authority under the Fiscal Agent Agreement with respect to such outstanding bonds will cease and terminate, except only the obligations of the Authority assuring (a) the exclusion of interest on the bonds from the gross income of the Owners of the bonds as provided in the Fiscal Agent Agreement and (b) the payment to the Owners of the bonds not so surrendered and paid all sums due thereon and all amounts owing to the Fiscal Agent; and thereafter Special Taxes will not be payable to the Fiscal Agent.

Amendment of Fiscal Agent Agreement
The Fiscal Agent Agreement and the rights and obligations of the Authority and of the Owners of the bonds issued under the Fiscal Agent Agreement may be modified or amended at any time by a Supplemental Agreement pursuant to the affirmative vote at a meeting of Owners, or with the written consent without a meeting, of the Owners of at least 60% in aggregate principal amount of the bonds then outstanding, exclusive of bonds disqualified as provided in the Fiscal Agent Agreement. No such modification or amendment will (i) extend the maturity of any bond or reduce the interest rate thereon, or otherwise alter or impair the obligation of the Authority to pay the principal of, and the interest and any premium on, any bond, without the express consent of the Owner of such bond, or (ii) permit the creation by the Authority of any pledge or lien upon the Special Taxes superior to or on a parity with the pledge and lien created for the benefit of the bonds (except as otherwise permitted by the Act, the laws of the State or the Fiscal Agent Agreement), or reduce the percentage of bonds required for the amendment hereof.

The Fiscal Agent Agreement and the rights and obligations of the Authority and of the Owners may also be modified or amended at any time by a Supplemental Agreement, without the consent of any Owners, only to the extent permitted by law and only for any one or more of the following purposes:
(i) to add to the covenants and agreements of the Authority contained in the Fiscal Agent Agreement, other covenants and agreements thereafter to be observed, or to limit or surrender any right or power herein reserved to or conferred upon the Authority;
(ii) to make modifications not adversely affecting any outstanding series of bonds in any material respect;
(iii) to make such provisions for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained in the Fiscal Agent Agreement, or in regard to questions arising thereunder, as the Authority and the

7.1.c
Packet Pg. 181 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -24-
Fiscal Agent may deem necessary or desirable, and which shall not adversely affect the rights of the Owners of the bonds; and
(iv) to make such additions, deletions or modifications as may be necessary or desirable to assure compliance with Section 148 of the Tax Code relating to required rebate of excess investment earnings to the United States or otherwise as may be necessary to assure exclusion from gross income for federal income tax purposes of interest on the bonds or to conform with the temporary and permanent regulations promulgated under the Tax Code.

7.1.c
Packet Pg. 182 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -25-

DEBT SERVICE SCHEDULE
The annual debt service on the 2024 Bonds, based on the interest rates and maturity schedule set forth on the cover of this Official Statement, is set forth below, together with the debt service due on the 2021 Bonds, which are payable on a parity basis.

West Patterson Financing Authority
Community Facilities District No. 2018-1 (Villages of Patterson) Special Tax Bonds – Parity Debt Service
Year Ending
(Sept. 1)
2021 Bonds
Debt Service
2024 Bonds
Principal
2024 Bonds
Interest
2024 Bonds
Debt Service
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
______________
Source: Underwriter.

7.1.c
Packet Pg. 183 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -26-

THE AUTHORITY
The following information relating to the Authority is included only for the purpose of supplying general information regarding the Authority. The Bonds are not payable from any of the Authority’s revenues or assets other than the Special Tax Revenues and amounts specifically pledged therefor under the Fiscal Agent Agreement.

The Authority was established as a joint exercise of powers authority pursuant to Section 6500, et seq., of the California Government Code (the “Joint Powers Act”) and a Joint Exercise of Powers Agreement, by and between the City and the former Redevelopment Agency of the City, dated June 5, 2001. The Authority is authorized, among other things, to provide financing for public capital improvements and working capital for the City and the former Redevelopment Agency, and to purchase obligations of local agencies, all as authorized by the Joint Powers Act. The Authority is governed by a five-member Board, which is comprised of the individuals who also act as members of the City Council of the City.

THE DISTRICT
Location and Description of the District, Future Annexation Area and Vicinity The District is located in the City, which lies in the Central Valley of the State, approximately 90 miles southeast of San Francisco and 90 miles south of Sacramento and approximately 18 miles southwest of Modesto, along State Route 33, adjacent to U.S. Interstate 5.

Interstate 5 is a major north-south freeway that travels to Sacramento and Redding to the north, before continuing on into Oregon, Washington and eventually Canada. To the south, Interstate 5 provides access to the metropolitan areas of Los Angeles and San Diego, before terminating at the Mexico border. State Highway 99 is also located in proximity to the City to the east and generally parallels Interstate 5, providing access to Sacramento to the north, and Fresno and Bakersfield to the south, before merging with Interstate 5 at the Grapevine.

Property in the District is located within the City, generally north of Walnut Avenue, between North First Street and Sycamore Avenue, as shown on the map on the following page The District was formed comprising approximately 204 gross acres. Two multifamily parcels (APNs 047-059-011 and 047-059-012) improved with 138 completed units have prepaid the Special Taxes and are therefore not included in District information contained in this Official Statement. The remaining land in the District comprises approximately 172 gross acres. The District was formed with an adjacent future annexation area designation, and residential expansion of the District both in the undeveloped acreage in the District as well as the future annexation area is expected, along with the issuance of Additional Bonds.

In accordance with the Resolution of Formation, parcels within the future annexation area are authorized to be annexed into the District only with the unanimous approval of the owner or owners of each parcel at the time of the proposed annexation, without any requirement for further public hearings or additional proceedings. Representatives of owners of land in the future annexation area expect that sales of parcels in the future annexation area will occur over the next several years.

Map. A map showing the current boundaries of the District, as well as the parcels in the future annexation area, is shown on the following page.

7.1.c
Packet Pg. 184 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -27
-
[Reserved for boundary map]

7.1.c
Packet Pg. 185 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -28-
Development in the District
Note that the Special Tax can only be levied on Developed Property, which is comprised of taxable parcels in the District for which a building permit for new construction was issued by the City prior to June 1 of the preceding Fiscal Year. There is no authority to levy on undeveloped property.

Overview. The District was formed comprising approximately 204 gross acres; however, two multifamily parcels (APNs 047-059-011 and 047-059-012) improved with 138 completed units have prepaid the Special Taxes and are therefore not included in District information contained in this Official Statement. The remaining land in the District comprises approximately 172 gross acres.

For additional information, see "OWNERSHIP OF PROPERTY WITHIN THE DISTRICT." Backbone and In-Tract Infrastructure. Basic (sometimes referred to as “backbone”) infrastructure (including water, sewer, roads and drainage) and in tract improvements for development and sale residential developments has been completed or is underway by the builders active in the District.

Utilities. All typical urban utility services are available for land in the District, and will be extended to the future annexation area as final mapped lots are created and annexed into the District. These utilities include electric power, natural gas, telephone, cable television, water, refuse, sanitary sewer and storm water facilities. The City provides water, refuse, sanitary sewer, and storm water facilities, and police and fire services. The Turlock Irrigation District provides electricity to the District. Pacific Gas & Electric provides natural gas.

Telecommunications are provided by Frontier Communications.

7.1.c
Packet Pg. 186 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -29-

THE IMPROVEMENTS
Eligible Facilities
The Bonds will provide a funding source for moneys expended for a portion of the cost of the Improvements. The Improvements eligible to be financed by the District are set forth in an exhibit to the Resolution of Formation and include, but are not limited to, the following:

Water Improvements: potable and non-potable water and water system infrastructure, including oversizing, that is required for development of land in the District, including but not limited to water wells and storage systems and treatment.

Drainage System Improvements: onsite and off-site backbone drainage and storm drainage improvements, including oversizing, designed to meet the needs of development in the District.

Wastewater Improvements: wastewater collection and treatment system facilities, including oversizing, including but not limited to pipelines and all appurtenances thereto, manholes, tie-in to existing main line; force mains, lift stations, odor-control facilities, sewer treatment plant improvements and permitting related thereto, and related sewer system improvements, ponds, subsystems, equipment and mitigation measures, within or outside of the District, which are required, necessary or desirable for development of land in the District.

Transportation Improvements: transportation facilities and improvements, including but not limited to roadway design; project management; bridge crossings and culverts; clearing, grubbing, and demolition; grading, soil import/export, paving (including slurry seal) and related land acquisition and mitigation measures, within or outside of the District, which are required, necessary or desirable for development of land in the District.

Fire Safety Improvements: construction of fire department facilities and acquisition of equipment necessary to serve the development, or the refurbishment or remodeling of same.

School Facilities: acquisition, construction and equipping of elementary, middle and high school facilities (and related school district support facilities) which serve all of the Villages of Patterson students generated and a portion of the student population residing and expected by the Patterson Joint Unified School District (“PJUSD”) to reside in the District, including reimbursement for financing costs, costs of carry or other amounts incurred or expended pending funding by the CFD.

Community Center: a portion of the cost to construct the proposed community center for the City.

Anticipated Use of Bond Proceeds
Proceeds of the 2024 Bonds are expected to be used by the City as contributions to new school facilities and the cost of construction of a wastewater treatment plant to be undertaken by the City to facilitate new development. [Confirm]

7.1.c
Packet Pg. 187 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -30-

OWNERSHIP OF PROPERTY WITHIN THE DISTRICT
Unpaid Special Taxes do not constitute a personal indebtedness of K. Hovnanian, KB or any other current or subsequent owners of the property within the District. There is no assurance that K. Hovnanian, KB or any other current or subsequent owners of the property within the District will have the ability to pay the Special Taxes or that, even if they have the ability, they will choose to pay the Special Taxes. An owner may elect to not pay the Special Taxes when due and cannot be legally compelled to do so. Neither the Authority nor any Bond Owner will have the ability at any time to seek payment directly from the owners of property within the District of the Special Tax or the principal or interest on the Bonds, or the ability to control who becomes a subsequent owner of any property within the District. As a result, other than as provided in this Official Statement, no financial statements or information is, or will be, provided about K. Hovnanian, KB, Trivo or any other current or subsequent property owner.

Special Taxes will not be levied on the properties in the future annexation area unless and until the owner(s) of such properties unanimously elect to have such properties annexed into the District. No assurance can be given that any properties in the future annexation area will be annexed into the District, and if so, when any such annexations would occur. The Bonds are secured only by the Special Taxes to be levied on property within the District and moneys available under the Fiscal Agent Agreement. See “SECURITY FOR THE BONDS” and “SPECIAL RISK FACTORS” herein.

Representatives of K. Hovnanian, and KB and Trivo, respectively, have provided the information set forth below. No assurance can be given that all information is complete. In addition, any Internet addresses included below are for reference only, and the information on those Internet sites is not a part of this Official Statement or incorporated by reference into this Official Statement.

Individual Homeowners
As shown in more detail in Table 2 herein, as of November 1, 2023, there were 325 individual homeowners within the District. This number will continue to grow as merchant homebuilders KB and K. Hovnanian continue to sell and close homes that are currently under construction and/or completed to individuals.

KB
Development by KB (Single-Family For-Sale). KB is developing homes in the District as part of three separate neighborhoods: Turnleaf, Acacia, and Sycamore.

Information about KB. As previously defined in this Official Statement “KB” is KB Home North Bay LLC, a Delaware limited liability company. KB is a wholly-owned subsidiary of KB Home, a Delaware corporation (“KB Home”), whose principal executive offices are located in Los Angeles, California. KB Home is a publicly traded company listed on the New York Stock Exchange under the ticker symbol “KBH.”
Founded in 1957, KB Home constructs and sells homes through its operating subsidiaries under the name KB Home. KB Home’s ongoing principal operations are in nine states, including California, Arizona, Nevada, Washington, Idaho, Colorado, Texas, Florida, and North Carolina, within 45 major markets. KB Home first developed homes in California in 1963.

KB Home’s homebuilding operations offer a variety of homes designed primarily for first-time,

7.1.c
Packet Pg. 188 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -31-
move-up and active adult homebuyers, including attached and detached single-family homes, townhomes and condominiums.

KB Home is subject to the informational reporting requirements of the Securities Exchange Act of 1934, amended (the “Exchange Act”), and in accordance therewith is obligated to annual, quarterly and current reports, proxy statements and other information with the Securities Exchange Commission (the “SEC”). Such filings set forth, among other things, certain data relative to the consolidated results of operations and financial position of KB Home and its subsidiaries. KB Home’s SEC filings are available to the public over the Internet at the SEC’s website at www.sec.gov, and at KB Home’s website at www.kbhome.com.

The foregoing internet websites and references to filings with the SEC are included for reference only, and the information on these internet sites and on file with the SEC are not a part of this Official Statement and are not incorporated by reference into this Official Statement.

No representation is made in this Official Statement as to the accuracy or adequacy of the information contained on such internet sites. Neither KB nor KB Home is obligated to advance funds to pay for development or construction costs or to pay ad valorem property taxes or the Special Taxes, and investors should not rely on the information and financial statements contained on such internet sites in evaluating whether to buy, hold or sell the 2024 Bonds.

7.1.c
Packet Pg. 189 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -32-
K. Hovnanian
Development by K. Hovnanian (Single-Family For-Sale). K. Hovnanian is developing homes in the District as part of its “Aspire at Apricot Grove” neighborhood. K. Hovnanian is developing 219 homes within this neighborhood.

Information about K. Hovnanian. As previously defined in this Official Statement “K.

Hovnanian” is K. Hovnanian Homes Northern California, Inc., a California corporation. K.

Hovnanian Homes Northern California, Inc. is wholly-owned by K. Hovnanian Homes which is headquartered in Matawan, New Jersey. K. Hovnanian Homes is a diversified real estate company, publicly traded on the New York Stock Exchange under the symbol HOV. The decision makers for the developer are Kevin Kimball, Region President, and Tim Collison, Region Controller.

K. Hovnanian Homes is subject to the informational requirements of the Securities Exchange Act of 1934, as amended, and in accordance therewith files reports, proxy statements and other information with the SEC. Such filings, particularly the Annual Report on Form 10-K and its most recent Quarterly Report on Form 10-Q, may be inspected and copied at the public reference facilities maintained by the SEC at 450 Fifth Street, N.W., Washington, D.C. 20549 at prescribed rates. Such files can also be accessed over the Internet at the SEC’s website at www.sec.gov.

For further information on K. Hovnanian, see its Internet homepage located at www.khov.com. The foregoing internet websites and references to filings with the SEC are included for reference only, and the information on these internet sites and on file with the SEC are not a part of this Official Statement and are not incorporated by reference into this Official Statement. No representation is made in this Official Statement as to the accuracy or adequacy of the information contained on such internet sites. Neither K. Hovnanian nor K. Hovnanian Homes is obligated to advance funds to pay for development or construction costs or to pay ad valorem property taxes or the Special Taxes, and investors should not rely on the information and financial statements contained on such internet sites in evaluating whether to buy, hold or sell the 2024 Bonds.

7.1.c
Packet Pg. 190 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -33-
Trivo
Development by Trivo (Multi-Family For-Rent). Trivo has 3 triplex buildings (9 residential units) under construction and 9 triplex buildings (27 residential units) completed in the District. These represent a portion of a larger, planned 132 multi-family residential units (88 two-bedroom units and 44 three-bedroom units) spread across multiple buildings. Phase 1 of the project, which is currently underway, is planned for 16 buildings (48 residential units); completion is expected by the end of 2023, and Trivo reports that it has seen strong leasing activity. Phase 2 of the project is “ready to issue (RTI) shovel ready.” All of the triplex units in the District are for-rent products, currently owned and operated by Trivo. Based on studies commissioned by Trivo, rents are projected to be affordable to a large portion of the existing population based on average and median incomes in the area.

Of the 9 triplex buildings constructed, there are three different plan types, with average unit sizes ranging from 1,136 to 1,614 square feet, and consisting of 2-bedroom/2-bathrooms for the smallest floorplans up to 3-bedroom/2.5-bathrooms for the largest. Based on information provided by Andrea Marin, Community Director at Villages of Patterson Triplexes, all units come with full kitchen appliances, vinyl plank and carpeted floors, either a full‐size or stackable washer and dryer, air conditioning, cable ready, extra storage closets, and one‐ or two‐car garages (Plan 1 has a one‐car garage, and Plans 2 and 3 have two‐car garages). Utilities, including water, sewer, and trash are paid by the tenant. Tenants are also responsible for electricity and renter’s insurance.

Information about Trivo. As used in this Official Statement, “Trivo” means, collectively, Trivo LLC, a California limited liability company, and VOP 2.1 LLC, a California limited liability company. VOP 2.1 LLC is the primary development entity, and the manager of Trivo LLC. Trivo LLC is 50% owned by VOP 2.1 LLC. Alicia Barclay serves as the manager of both VOP 2.1 LLC and Trivo LLC. Trivo has been involved in the project since 2005.

7.1.c
Packet Pg. 191 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -34-

SPECIAL TAX REVENUE AND VALUE OF PROPERTY WITHIN THE DISTRICT The Special Tax is levied on each taxable parcel within the District and only the respective individual parcel is responsible for such Special Tax. In comparing the aggregate value of the taxable property within the District and the principal amount of the Bonds, it should be noted that only the assessor’s parcel of real property upon which there is a delinquent Special Tax can be foreclosed upon. All of the taxable property within the District cannot be foreclosed upon as a whole to pay delinquent Special Taxes unless all of the property is subject to delinquent Special Taxes. Individual parcels may be foreclosed upon to pay delinquent Special Taxes levied against such parcels only. See “SECURITY FOR THE BONDS” and “SPECIAL RISK FACTORS.”
The principal amount of the Bonds is not allocated pro-rata among the parcels within the District; rather, the annual Special Taxes for the District are billed annually for each taxable parcel within the District in accordance with the applicable Special Tax Formula. Upon sale of developed parcels, the buyer typically acquires the property subject to the unpaid portion of any general taxes and special taxes levied against the parcel purchased. General taxes and special taxes are not required to be removed from the property and are not required to be, but may be, paid off in full upon transfer of property or upon development of the property.

Because the land in the District is under development and includes homes owned by homeowners and parcels, including homes under construction, not assessed for a complete improvement value ($300,000 or more) by the Stanislaus County Assessor, the City determined an estimated value of property in the District by using both the County assessed valuation for the completed homes on the tax roll for Fiscal Year 2023-24 and additionally ordered an appraisal for an estimation of the value of the remainder of the taxable parcels in the District.

Assessed Valuation
Assessed Value. Article XIIIA of the California Constitution (Proposition 13) defines “full cash value” to mean “the county assessor’s valuation of real property as shown on the 1975-76 bill under ‘full cash value’, or, thereafter, the appraised value of real property when purchased or newly constructed or when a change in ownership has occurred after the 1975 assessment,” subject to exemptions in certain circumstances of property transfer or reconstruction. The “full cash value” is subject to annual adjustment to reflect increases, not to exceed 2 percent for any year, or decreases in the consumer price index or comparable local data, or to reflect reductions in property value caused by damage, destruction or other factors.

Because of the general limitation to 2% per year in increases in full cash value of properties which remain in the same ownership, the county tax roll does not reflect values uniformly proportional to actual market values. No assurance can be given that should a parcel with delinquent Special Taxes be foreclosed and sold for the amount of the delinquency, that any bid will be received for such property, or if a bid is received that such bid will be sufficient to pay such delinquent installments.

7.1.c
Packet Pg. 192 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -35-
Parcels in the District currently subject to the Special Tax had assessor valuations for the years shown as follows:

Fiscal
Year
Land
Assessed
Value
Improvement
Assessed
Value
Other
Assessed
Value
Total
Assessed
Value
Number of
Permitted
Parcels (1)
2020-21 $3,736,074 $0 $0 $3,736,074 38
2021-22 14,265,679 33,992,695 75,640 48,334,014 153
2022-23 28,004,638 59,202,075 0 87,206,713 281
2023-24 50,734,271 105,222,055 0 155,956,326 403
(1) Represents the number of parcels for which a building permit for new construction was issued prior to June 1 of the prior fiscal year, but not prior to June 1, 2017. Excludes parcels for which the special tax has been prepaid starting in the year each parcel became exempt from the special tax levy.

Sources: Stanislaus County Assessor’s Office; Goodwin Consulting Group, Inc.

The Appraisal
General. To comply with internal policies and in order to provide an estimate of value of certain taxable property within the District, the Authority ordered an appraisal of the land in the District by Integra Realty Resources, Sacramento, California (the “Appraiser”), which prepared an appraisal report with a date of value of November 1, 2023 (the “Appraisal”). The Appraisal was prepared at the request of the Authority. The Appraisal is set forth in its entirety in APPENDIX C. The description herein of the Appraisal is intended for limited purposes only; the Appraisal should be read in its entirety. The conclusions reached in the Appraisal are subject to certain assumptions and qualifications which are set forth in the Appraisal.

Property Appraised. A portion of the appraised properties consist of 189 improved single‐family residential lots, including 99 completed single‐family homes within the boundaries of the District not currently assessed for a complete improvement value ($300,000 or more) by the Stanislaus County Assessor. These completed homes are represented by three product lines (subdivisions); the smallest floor plan being constructed within each product line was appraised for each subdivision. As such, a “not‐less‐than” estimate of market value for the smallest floor plan constructed within the District was appraised and assigned to each applicable Assessor’s parcel. The balance of the appraised single‐family residential lots comprises 90 lots with homes under construction and are appraised herein as finished single‐ family residential lots, with no contributory value given to the partial home construction.

In addition, a portion of the appraised properties consists of 9 completed triplex buildings (27 completed units) and 3 triplex buildings under construction (9 units under construction). The current owner of this component of the subject plans to complete this 48‐unit multifamily project, configured as triplex units (3 rental units on one taxable parcel). The 3 triplexes with units under construction are appraised as land, with no contributory value given to the partial triplex construction.

Value Estimates. The aggregate value estimate for the appraised properties as of the November 1, 2023 date of value, using the methodologies described in the Appraisal and subject to the limiting conditions and special assumptions set forth in the Appraisal, and based on the ownership of the property as of that date, is $69,223,500. When combined with the County assessed valuation of the taxable property in the District not appraised of $131,952,427, the total estimated value of parcels in the District is $201,175,927.

7.1.c
Packet Pg. 193 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -36-
The estimated value of the properties appraised, by ownership is set forth in the following table.

Owner
No. of
Parcels
Appraised
Value
KB Home North Bay LLC 67 $16,765,500
K. Hovnanian 42 6,930,000
Trivo 3 7,648,000
Individual Homeowners(1) 80 37,880,000
Total 192 $69,223,500
(1) Consists entirely of homes without a complete assessment for structural improvements by County Assessor.

Source: Integra Realty Resources, Inc.

Valuation Methodology. Three approaches to value are typically considered when developing a market value opinion for real property. These are the cost approach, the sales comparison approach, and the income capitalization approach. Use of the approaches in Appraisal is summarized as follows:

The valuation began by employing the sales comparison approach to estimate the not‐less‐ than market value for the completed single‐family homes, based on the smallest floor plan being marketed within each project with a completed home. Then, the market value of the residential lots was estimated by utilizing the sales comparison approach and land residual analysis. In valuing the subject lots, we selected benchmark lot category. In the sales comparison approach, adjustments were applied to the prices of comparable bulk lot transactions, and a market value for the benchmark lot category was concluded. Finally, the Appraisal utilized a land residual analysis, which was reconciled with the sales comparison approach conclusion. In the land residual analysis (a variation of the cost approach and income capitalization approaches combined), all direct and indirect costs are deducted from an estimate of the anticipated gross sales price of the improved product; the resultant net sales proceeds are then discounted to present value at an anticipated rate over the development and absorption period to indicate the residual value of the lots.

In a dynamic market that currently exists, the land residual analysis gains applicability (can consider data points closer to real time than bulk lot sales). Depending on recent activity for lot sales, the sales comparison approach can be a lagging indicator of value in a dynamic market.

There has been a general lack of recent lot sales within the region. Given the information cited above, the Appraiser noted that the direct sales comparison approach is considered a supporting indicator to the land residual analysis, which considers the current prices achieved for new home sales. However, since the difference in value between approaches is 1.30%, a concluded finished lot value consist with the sales comparison approach or $165,000 was deemed appropriate.

The subject property also contains 12 triplexes (36 units) under a single ownership operated as a rental community, of which nine triplex buildings (27 units) are complete and occupied and three triplex buildings (nine units) are under construction. In order to value the completed triplex buildings, the Appraiser utilized the income capitalization approach to value.

Comparable sales were arrayed as a support of reasonableness of the indication of value derived via the income capitalization approach. It is the Appraiser’s opinion the income capitalization approach adequately analyzes the subject’s income‐producing characteristics and was relied upon in the valuation of this portion of the subject. Finally, in order to estimate market value of the underlying land of the triplex lots under construction, the Appraiser deducts vertical construction costs from the previously concluded completed triplex value.

7.1.c
Packet Pg. 194 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -37-
The cumulative, or aggregate, value of the appraised properties represents the sum of the value estimates concluded for each ownership interest, which is not equivalent to the market value of the appraised properties in bulk.

Appraisal Limitations; Hypothetical Condition. In considering the estimate of value evidenced by the Appraisal, the Appraisal is based upon a number of standard and special assumptions which affect the estimates as to value, which includes the hypothetical condition of the Appraisal that the estimates of value provided herein presume various capital improvements have been financed with the proceeds of the 2024 Bonds.

The estimate of value accounts for the impact of the lien of the Special Taxes securing the Bonds. No assurance can be given that the foregoing valuation can or will be maintained during the period of time that the Bonds are outstanding in that the City has no control over the market value of the property within the District or the amount of additional indebtedness that may be issued in the future by other public agencies, the payment of which, through the levy of a tax or an assessment, may be on a parity with the Special Taxes. See “–Overlapping Liens and Priority of Lien” below.

For a description of certain risks that might affect the assumptions made in the Appraisal, see “SPECIAL RISK FACTORS” herein and “APPENDIX B – THE APPRAISAL.” Value to Special Tax Burden Ratios
In comparing the value of the real property within the District and the principal amount of the Bonds, it should be noted that only the real property upon which there is a delinquent Special Tax can be foreclosed upon, and the real property within the District cannot be foreclosed upon as a whole to pay delinquent Special Taxes of the owners of such parcels within the District unless all of the property is subject to a delinquent Special Tax. In any event, individual parcels may be foreclosed upon separately to pay delinquent Special Taxes levied against such parcels.

Other public agencies whose boundaries overlap those of the District could, without the consent of the City and in certain cases without the consent of the owners of the land within the District, impose additional taxes or assessment liens on the land within the District. Property owners can also voluntarily add Property Assessed Clean Energy (PACE) assessment liens on their property to finance energy efficiency improvements. The lien created on the land within the District through the levy of such additional taxes or assessments may be on a parity with the lien of the Special Tax. In addition, owners of land in the District may obtain loans secured by a foreclosable deed of trust security interest in their property. The deeds of trust securing such debt on property within the District, however, will be subordinate to the lien of the Special Tax.

The following table shows value-to-lien ratios for parcels in the District. These ratios are averages, and the value-to-lien ratios for individual parcels can, and do, vary widely.

7.1.c
Packet Pg. 195 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -38-
Table 1
West Patterson Financing Authority
CFD No. 2018-1 (Villages of Patterson)
Value to Lien Ratios by Status of Development for
Projected Fiscal Year 2024-25 Special Tax Levy
Development Status (1)
No. of
Parcels
No. of
Expected
Units
Combined
Value (2)
Projected
FY 2024-25
Maximum
Special Tax
Projected
FY 2024-25
Special Tax
Levy (3)
Percent of
Projected
Special
Tax Levy
CFD
Bonds(4)*
Average
Combined
Value-to-Lien*
Aspire at Apricot Grove
Finished Homes 124 124 $68,540,374 $234,308 $234,308 27.5% $4,129,494 16.60 Finished Homes - Appraised 36 36 17,640,000 68,025 68,025 8.0 1,198,885 14.71 Under Construction 2 2 804,676 3,779 3,779 0.4 66,605 12.08 Under Construction - Appraised 42 42 6,930,000 79,362 79,362 9.3 1,398,700 4.95 Turnleaf at Patterson Ranch
Finished Homes 121 121 62,607,377 228,639 228,639 26.8 4,029,587 15.54 Finished Homes - Appraised 57 57 26,220,000 107,706 107,706 12.6 1,898,235 13.81 Under Construction - Appraised 9 9 1,485,000 17,006 17,006 2.0 299,721 4.95 Acacia at Patterson Ranch
Finished Homes - Appraised 4 4 1,900,000 7,558 7,558 0.9 133,209 14.26 Under Construction - Appraised 25 25 4,125,000 47,240 47,240 5.5 832,559 4.95 Sycamore at Patterson Ranch
Finished Homes - Appraised 2 2 990,000 3,779 3,779 0.4 66,605 14.86 Under Construction - Appraised 14 14 2,285,500 26,454 26,454 3.1 466,233 4.90 Villages of Patterson Triplex
Finished Triplexes - Appraised 9 27 7,300,000 21,710 21,710 2.5 382,625 19.08 Under Construction - Appraised 3 9 348,000 7,237 7,237 0.8 127,542 2.73 Total 448 472 $201,175,927 $852,804 $852,804 100.0% $15,030,000 13.38 * Preliminary, subject to change.
(1) The projected Fiscal Year 2024-25 special tax levy is based on all building permits issued by the City prior to November 1, 2023. The construction status and neighborhood names reflect what is shown in the Appraisal, dated November 29, 2023. For each category, the units included in the Appraisal are marked as appraised. The Fiscal Year 2023-24 assessed values are used for all other categories. (2) Appraised values were allocated to the individual parcels based on the expected development and development status for each parcel, as reported in the Appraisal.

The allocated appraised values are not indicative of the market values of the neighborhoods or ownership groupings. Includes the Fiscal Year 2023-24 assessed values for parcels that were not appraised.
(3) Includes the debt service due in 2025 on the Series 2021 Special Tax Bonds, the estimated debt service due in 2025 on the Series 2024 Special Tax Bonds, an estimated $48,683 in administrative expenses, and an estimated $53,271 to directly fund facilities. Does not include prepaid parcels. (4) Includes the $4,385,000 outstanding par amount of the Series 2021 Special Tax Bonds and $10,645,000 par amount of the Series 2024 Special Tax Bonds. Allocated based on the projected Fiscal Year 2024-25 special tax levy. Does not include any overlapping debt.

Sources: Integra Realty Resources, Inc.; Hilltop Securities, Inc.; Stanislaus County Assessor’s Office; Goodwin Consulting Group, Inc.

7.1.c
Packet Pg. 196 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -39-
Table 2
West Patterson Financing Authority
CFD No. 2018-1 (Villages of Patterson)
Property Ownership by Share of Projected Fiscal Year 2024-25 Special Tax Levy Owner (1)
No. of
Parcels
No. of
Expected
Units
Combined
Value(2)
Projected
FY 2024-25
Maximum
Special Tax
Projected
FY 2024-25
Special Tax
Levy(3)
Percent of
Projected
Special
Tax Levy
CFD
Bonds(4)*
Average
Combined
Value-to-Lien*
Individual Homeowners 325 325 $169,027,751 $614,114 $614,114 72.0% $10,823,271 15.62:1 KB Home North Bay LLC 67 67 16,765,500 126,602 126,602 14.8 2,231,259 7.51:1 K. Hovnanian 44 44 7,734,676 83,142 83,142 9.7 1,465,304 5.28:1 Trivo LLC 12 36 7,648,000 28,947 28,947 3.4 510,166 14.99:1 Total 448 472 $201,175,927 $852,804 $852,804 100.0% $15,030,000 13.38:1 * Preliminary, subject to change.
(1) Based on ownership information as of November 1, 2023. May not reflect recent sales. (2) Appraised values were allocated to the individual parcels based on the expected development and development status for each parcel, as reported in the Appraisal. The allocated appraised values are not indicative of the market values of the neighborhoods or ownership groupings. Includes the Fiscal Year 2023-24 assessed values for parcels that were not appraised.
(3) Includes the debt service due in 2025 on the Series 2021 Special Tax Bonds, the estimated debt service due in 2025 on the Series 2024 Special Tax Bonds, an estimated $48,683 in administrative expenses, and an estimated $53,271 to directly fund facilities. Does not include prepaid parcels. (4) Includes the $4,385,000 outstanding par amount of the Series 2021 Special Tax Bonds and $10,645,000 par amount of the Series 2024 Special Tax Bonds.

Allocated based on the projected Fiscal Year 2024-25 special tax levy. Does not include any overlapping debt.

Sources: Integra Realty Resources, Inc.; Hilltop Securities, Inc. Stanislaus County Assessor’s Office; Goodwin Consulting Group, Inc.

7.1.c
Packet Pg. 197 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 -40-
Value to Lien Ratio Categories. The following table set forth value-to-lien-ratio categories, based on projected or maximum special tax rates (as indicated), and certain other assumptions detailed therein.

Table 3
West Patterson Financing Authority
CFD No. 2018-1 (Villages of Patterson)
Combined Value-to-Lien Ratios
Combined
Value-to-Lien
Category
No. of
Parcels
No. of
Expected
Units
Combined
Value(1)
Projected
Fiscal Year
2023-24
Special
Tax Levy(2)
Percent of
Projected
Special Tax
Levy
CFD
Bonds(3)*
Average
Combined
Value-to-Lien*
20:1 to 30:1 73 91 $47,017,549 $142,643 16.7% $66,605 20.16:1 10:1 to 20:1 282 282 138,984,878 532,862 62.5 11,838,640 15.60:1 5:1 to 10:1 90 90 14,825,500 170,062 19.9 2,997,213 4.95:1 3:1 to 5:1 3 9 348,000 7,237 0.8 127,542 2.73:1
Totals 448 472 $201,175,927 $852,804 100.0% $15,030,000 13.38:1 * Preliminary; subject to change.
(1) Appraised values were allocated to the individual parcels based on the expected development and development status for each parcel, as reported in the Appraisal. The allocated appraised values are not indicative of the market values of the neighborhoods or ownership groupings. Includes the Fiscal Year 2023-24 assessed values for parcels that were not appraised. (2) Includes building permits issued prior to November 1, 2023. Includes the debt service due in 2025 on the Series 2021 Special Tax Bonds and the estimated debt service for the Series 2024 Special Tax bonds, an estimated $48,683 in administrative expenses, and $53,271 for direct funding of facilities. (3) Includes the $4,385,000 outstanding par amount of the Series 2021 Special Tax Bonds and $10,645,000 par amount of the Series 2024 Special Tax Bonds. Allocated based on the projected Fiscal Year 2024-25 special tax levy. Does not include any overlapping debt.

Sources: Integra Realty Resources, Inc.; Hilltop Securities, Inc.; Goodwin Consulting Group, Inc.

7.1.c
Packet Pg. 198 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -41-
Estimated Maximum Special Tax Proceeds and Debt Service Coverage The Special Tax Formula is structured to produce Special Tax Revenues from the Maximum Special Tax which, when applied to the projected debt service on the Bonds, is anticipated to result in a debt service coverage ratio of at least 110% for the life of the Bonds, as shown in the table below.

Table 4
West Patterson Financing Authority
Community Facilities District No. 2018-1 (Villages of Patterson) Projected Revenues from Levy of Special Taxes and Project Debt Service Coverage Fiscal Year
Ending
Projected
Maximum
Special Tax(2)
Priority
Administrative
Expenses(3)
Net Projected
Maximum
Special Tax
Series 2021
Debt Service
Series
2024
Debt
Service*
Debt Service
Coverage
Maximum
Special Tax*
2024 (4) $708,261 ($26,010) $682,251 $209,200 $291,259 136.33% 2025 852,804 (26,530) 826,274 213,150 537,250 110.11
2026 869,863 (27,061) 842,803 216,950 547,000 110.32
2027 887,257 (27,602) 859,655 220,600 556,250 110.66
2028 905,003 (28,154) 876,849 223,600 570,000 110.49
2029 923,110 (28,717) 894,393 231,400 578,000 110.50
2030 941,569 (29,291) 912,277 233,800 590,500 110.67
2031 960,398 (29,877) 930,521 241,000 602,250 110.35
2032 979,606 (30,475) 949,132 242,800 618,250 110.23
2033 999,202 (31,084) 968,118 249,400 628,250 110.31
2034 1,019,186 (31,706) 987,480 255,600 637,500 110.57
2035 1,039,568 (32,340) 1,007,228 261,400 651,000 110.39 2036 1,060,357 (32,987) 1,027,370 266,800 663,500 110.43 2037 1,081,568 (33,647) 1,047,921 271,800 680,000 110.10 2038 1,103,195 (34,320) 1,068,876 276,400 695,250 110.01 2039 1,125,265 (35,006) 1,090,259 280,600 709,250 110.14 2040 1,147,768 (35,706) 1,112,061 289,400 717,000 110.50 2041 1,170,722 (36,420) 1,134,301 292,600 733,750 110.52 2042 1,194,136 (37,149) 1,156,987 300,400 749,000 110.25 2043 1,218,020 (37,892) 1,180,128 302,600 767,750 110.26 2044 1,242,382 (38,649) 1,203,733 309,400 779,750 110.52 2045 1,267,223 (39,422) 1,227,801 315,600 800,250 110.03 2046 1,292,569 (40,211) 1,252,358 321,200 813,750 110.34 2047 1,318,421 (41,015) 1,277,406 331,200 825,500 110.44 2048 1,344,787 (41,835) 1,302,952 335,400 845,500 110.34 2049 1,371,686 (42,672) 1,329,013 344,000 863,250 110.09 2050 1,399,117 (43,526) 1,355,591 351,800 878,750 110.16 2051 1,427,107 (44,396) 1,382,711 358,800 897,000 110.11 2052 1,455,649 (45,284) 1,410,365 0 1,277,750 110.38
2053 1,484,759 (46,190) 1,438,569 0 1,307,750 110.00
2054 1,514,455 (47,114) 1,467,342 0 1,333,500 110.04
* Preliminary, subject to change.
(1) Pursuant to Section 53321(d) of the Government Code, the special tax levied against any assessor's parcel for which an occupancy permit for private residential use has been issued shall not be increased as a consequence of delinquency or default by the owner of any other assessor's parcel within the District by more than 10% above the amount that would have been levied in the fiscal year had there never been any such delinquencies or defaults. (2) Includes projected maximum special tax revenues based on the status of development in the CFD as of November 1, 2023.

Assumes no future development. Does not include prepaid parcels. (3) Equals $25,000 in fiscal year 2021-22, escalated by 2% per year. (4) Actual special tax levy for Fiscal Year 2023-24 was $708,261.46.

Sources: Hilltop Securities, Inc.; Goodwin Consulting Group, Inc.

7.1.c
Packet Pg. 199 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -42-
Overlapping Liens and Priority of Lien
The principal of and interest on the Bonds are payable from the Special Tax authorized to be collected within the District, and payment of the Special Tax is secured by a lien on certain real property within the District. Such lien is co-equal to and independent of the lien for general taxes and any other liens imposed under the Act, regardless of when they are imposed on the property in the District. The imposition of additional special taxes, assessments and general property taxes will increase the amount of independent and co-equal liens which must be satisfied in foreclosure.

The Authority, the County and certain other public agencies are authorized by the Act to form other community facilities districts and improvement areas and, under other provisions of State law, to form special assessment districts, either or both of which could include all or a portion of the land within the District.

Set forth on the following page is an overlapping debt table showing the existing direct and overlapping bonded debt payable with respect to property within the District. This table has been prepared by California Municipal Statistics, Inc. as of the date indicated, and is included for general information purposes only. The Authority has not reviewed the data for completeness or accuracy and makes no representations in connection therewith.

There can be no assurance that owners of property in the District, or any subsequent owner will not petition for the formation of other community facilities districts or for a special assessment district or districts and that parity special taxes or special assessments will not be levied by the County or some other public agency to finance additional public facilities, however no other special districts are currently contemplated by the Authority.

Private liens, such as deeds of trust securing loans obtained by owners of property in the District, may be placed upon property in the District at any time. Under State law, the Special Taxes have priority over all existing and future private liens imposed on property subject to the lien of the Special Taxes.

7.1.c
Packet Pg. 200 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -43-
Table 5
West Patterson Financing Authority
Community Facilities District No. 2018-1 (Villages of Patterson) Summary of Overlapping Debt
2023-24 Local Secured Assessed Valuation: $160,374,019
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: % Applicable Debt 12/1/23 Yosemite Community College District General Obligation Bonds 0.181% $ 436,647 Patterson Joint Unified School District General Obligation Bonds 3.871 2,384,240 West Patterson Public Financing Authority Community Facilities District No. 2018-1 100.000 4,385,000(1) TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $7,205,887 OVERLAPPING GENERAL FUND DEBT:

Stanislaus County Certificates of Participation 0.244% $ 10,964 Stanislaus County Office of Education Certificates of Participation 0.244 975 Patterson Joint Unified School District Certificates of Participation 3.871 385,595 City of Patterson General Fund Obligations 5.368 94,153 Turlock Mosquito and Vector Control Pension Obligation Bonds 0.596 7,561 TOTAL OVERLAPPING GENERAL FUND DEBT $499,248
COMBINED TOTAL DEBT $7,705,135 (2)
Ratios to 2020-21 Assessed Valuation:

Direct Debt ($4,385,000).................................................................................. 2.73% Total Direct and Overlapping Tax and Assessment Debt ................................... 4.49% Combined Total Debt ......................................................................................... 2.80% ________________________
(1) Mello-Roos Act bonds to be sold.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Source: California Municipal Statistics, Inc.

7.1.c
Packet Pg. 201 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -44-
Estimated Tax Burden on Single-Family Home
Based on market values for parcels with single family detached homes in the District as estimated in the Appraisal., the Special Tax Administrator has projected that the overall tax burden for the smallest floorplan homes in the District will be approximately 1.84% to 1.89%, as shown in the following table. The projected overall tax burden for larger floorplan homes is expected to be smaller, as a percentage of the projected assessed value of the homes.

Table 6
West Patterson Financing Authority
CFD No. 2018-1 (Villages of Patterson)
Estimated Fiscal Year 2023-24 Tax Bills
Neighborhood:

Aspire
at Apricot
Grove
Turnleaf
at Patterson
Ranch
Acacia
at Patterson
Ranch
Sycamore
at Patterson
Ranch
Net Taxable Value Amount Amount Amount Amount
Estimated Market Values (1) $490,000 $460,000 $475,000 $495,000 Less: Homeowner’s Exemption (7,000) (7,000) (7,000) (7,000) Net Taxable Value $483,000 $453,000 $468,000 $488,000
Ad Valorem Property Taxes Rate Amount Amount
Base Property Tax 1.000000% $4,830 $4,530 $4,680 $4,880 Patterson Unif - Bond 01A 0.024990 121 113 117 122
Patterson Unif - Bond 01B 0.007317 35 33 34 36
Patterson Unif - Bond 2008A 0.009547 46 43 45 47
Patterson Unif - 2016 GO Refunding 0.006119 30 28 29 30 Patterson Unif - Bond 2018 A 0.042528 205 193 199 208
Patterson 2022 GOB Series A 0.050396 243 228 236 246
YCCD - Bond 2007 C 0.010324 50 47 48 50
YCCD - Bond 2015 Refunding 0.000489 2 2 2 2
Yosemite 2020 GOB Refunding Series A/B 0.006385 31 29 30 31 Yosemite 2022 GOB Refunding 0.005910 29 27 28 29
Total Ad Valorem Property Taxes 1.164005% $5,622 $5,273 $5,448 $5,680 Parcel Charges, Assessments, and Special Taxes Amount Amount Patterson Ambulance District $27 $27 $27 $27
City of Patterson CFD 2018-02 919 919 953 919
Public Safety CFD 2003-1 618 618 618 618
Turlock Mosquito Abatement 5 5 5 5
WPFA CFD No. 2018-1
(2) 1,853 1,853 1,853 1,853
Total Parcel Charges, Assessments, and Special Taxes $3,422 $3,422 $3,456 $3,422 Total Taxes $9,044 $8,695 $8,903 $9,102
Total Effective Tax Rate 1.85% 1.89% 1.87% 1.84%
(1) Represents the base retail values for parcels with single family detached homes in the District, as estimated in the Appraisal. (2) Equal to the applicable maximum special tax rate for single family detached property in Fiscal Year 2023-24.

Sources: Stanislaus County Tax Collector’s Office; Goodwin Consulting Group, Inc.

7.1.c
Packet Pg. 202 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -45-
Special Tax Collections and Delinquencies
The following table shows a history of Special Tax collections and delinquencies in the District.

Table 7
West Patterson Financing Authority
CFD No. 2018-1 (Villages of Patterson)
Special Tax Collections and Delinquencies
As of the end of fiscal year As of November 15, 2023
Fiscal
Year
Amount
Levied
Number of
Parcels
Delinquent
Amount
Delinquent
Percentage
Delinquent
Number of
Parcels
Delinquent
Amount
Delinquent
Percentage
Delinquent
2021-22 $85,087 3 $23,688 27.84% 0 $0 0.00%
2022-23 $316,671 0 $0 0.00% 0 $0 0.00%
2023-24 $510,358 5 $5,449 1.07% 2 $2,724 0.53%
Sources: Stanislaus County Tax Collector’s Office; Goodwin Consulting Group, Inc.

7.1.c
Packet Pg. 203 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -46-

SPECIAL RISK FACTORS
The purchase of the 2024 Bonds described in this Official Statement involves a degree of risk that may not be appropriate for some investors. The following includes a discussion of some of the risks which should be considered before making an investment decision.

Limited Obligation of the Authority to Pay Debt Service The Authority has no obligation to pay principal of and interest on the Bonds in the event Special Tax collections are delinquent, other than from amounts, if any, on deposit in the applicable reserve accounts within the Reserve Fund or funds derived from the tax sale or foreclosure and sale of parcels on which levies of the Special Tax are delinquent, nor is the Authority obligated to advance funds to pay such debt service on the Bonds. The Bonds are not general obligations of the Authority but are limited obligations of the Authority and the District payable solely from the proceeds of the Special Tax and certain funds held under the Fiscal Agent Agreement, including amounts deposited in the Reserve Fund and investment income thereon, and the proceeds, if any, from the sale of property subject to the Special Tax in the event of a foreclosure. See “SECURITY FOR THE BONDS.” Any tax for the payment of the Bonds will be limited to the Special Tax to be collected on property in the District that is subject to the Special Tax.

Concentration of Ownership
Owners of property are not personally obligated to pay the Special Tax attributable to their property. Rather, the Special Tax is an obligation only against the parcel of property, secured by the amount which could be realized in a foreclosure proceeding against the property, and not by any promise of the owner to pay. If the value of the property is not sufficient, taking into account other obligations also constituting a lien against the property, the Authority, Fiscal Agent and owners of the Bonds have no recourse against the owner, such as filing a lawsuit to collect money.

Failure of one of the merchant builders or any future owner of significant property subject to the Special Taxes in the District to pay installments of Special Taxes when due could cause the depletion of amounts in the Reserve Fund prior to reimbursement from the resale of foreclosed property or payment of the delinquent Special Tax and, consequently, result in the delinquency rate reaching a level that would cause an insufficiency in collection of the Special Tax to meet the District’s obligations on the Bonds. In that event, there could be a delay or failure in payments on the Bonds. See “SPECIAL RISK FACTORS – Bankruptcy and Foreclosure Delays” below and “SECURITY FOR THE BONDS – Delinquent Payments of Special Tax; Covenant for Superior Court Foreclosure.”
Appraised Values
The Appraisal estimates the market value of certain taxable property in the District. This market value is merely the present opinion of the Appraiser, and is subject to the assumptions and limiting conditions stated in the Appraisal. The Authority has not sought the present opinion of any other appraiser of the value of such property. A different present opinion of value might be rendered by a different appraiser.

The opinion of value relates to sale by a willing seller to a willing buyer as of the date of valuation, each having similar information and neither being forced by other circumstances to sell

7.1.c
Packet Pg. 204 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -47-
or to buy. Consequently, the opinion is of limited use in predicting the selling price at a foreclosure sale, because the sale is forced and the buyer may not have the benefit of full information.

In considering the estimates of value evidenced by the Appraisal, it should be noted that the Appraisal is based upon a number of standard and extraordinary assumptions and limitations which affect the estimates as to value, as set forth in the Appraisal. In addition, the opinion of market value in the Appraisal is a present opinion. It is based upon present facts and circumstances. Differing facts and circumstances may lead to differing opinions of value. The appraised market value is not evidence of future value because future facts and circumstances may differ significantly from the present.

No assurance can be given that the single property in the District could be sold in a foreclosure for the estimated market value contained in the Appraisal. Such sale is the primary remedy available to Bondowners if such property should become delinquent in the payment of Special Taxes.

Property Values and Property Development
The value of taxable property within the District is a critical factor in determining the investment quality of the Bonds. If a property owner defaults in the payment of the Special Tax, the District’s only remedy is to foreclose on the delinquent property in an attempt to obtain funds with which to pay the delinquent Special Tax. As of the date of this Official Statement, there is only a single parcel of land in the District subject to the Special Tax; although it is contemplated that parcels in the future annexation area may be annexed into the District in the future, no assurances can be given that this will occur, or if it does occur, when such annexations may occur. Land development and land values in the District and the future annexation area could be adversely affected by economic and other factors beyond the District’s control, such as: a general economic downturn; adverse judgments in future litigation that could affect the scope, timing or viability of development; relocation of employers out of the area; stricter land use regulations; shortages of water, electricity, natural gas or other utilities; destruction of property caused by earthquake, flood or other natural disasters; environmental pollution or contamination.

The Appraisal sets forth certain assumptions of the Appraiser in estimating the market value of the Appraised Property as of the date indicated. No assurance can be given that the values are accurate if these assumptions are incorrect or that the values will not decline in the future if one or more events, such as natural disasters or adverse economic conditions, occur.

See “SPECIAL TAX REVENUES AND VALUE OF PROPERTY IN THE DISTRICT – The Appraisal” above.

Neither the Authority nor the Underwriter have evaluated development risks related to the District. Since these are largely business risks of the type that property owners customarily evaluate individually, and inasmuch as changes in land ownership may well mean changes in the evaluation with respect to any particular parcel, the Authority is issuing the Bonds without regard to any such evaluation. Thus, the creation of the District and the issuance of the Bonds in no way implies that the District or the Authority has evaluated these risks or the reasonableness of these risks.

The following is a discussion of specific risk factors that could affect the timing or scope of property development in the District or the value of property in the District.

7.1.c
Packet Pg. 205 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -48-
Land Development. Land values are influenced by the level of development in the area in many respects.

First, undeveloped or partially developed land is generally less valuable than developed land and provides less security to the owners of the Bonds should it be necessary for the District to foreclose on undeveloped or partially developed property due to the nonpayment of Special Taxes.

Second, failure to complete development on a timely basis could adversely affect the land values of those parcels that have been completed. Lower land values would result in less security for the payment of principal of and interest on the Bonds and lower proceeds from any foreclosure sale necessitated by delinquencies in the payment of the Special Tax. See “SPECIAL TAX REVENUE AND VALUE OF PROPERTY WITHIN THE DISTRICT – Value to Special Tax Burden Ratios.” No assurance can be given that the proposed development within the District and future annexation area will be completed, and in assessing the investment quality of the Bonds, prospective purchasers should evaluate the risks of non-completion.

Risks of Real Estate Investment Generally. Continuing development in the District may be adversely affected by changes in general or local economic conditions, fluctuations in the real estate market, increased construction costs, development, financing and marketing capabilities of individual property owners, water or electricity shortages, and other similar factors. Development in the District may also be affected by development in surrounding areas, which may compete with the District. In addition, land development operations are subject to comprehensive federal, state and local regulations, including environmental, land use, zoning and building requirements. There can be no assurance that proposed land development operations within the District will not be adversely affected by future government policies, including, but not limited to, governmental policies to restrict or control development, or future growth control initiatives. There can be no assurance that land development operations within the District will not be adversely affected by these risks.

Natural Disasters. The value of land in the District in the future can be adversely affected by a variety of natural occurrences, particularly those that may affect infrastructure and other public improvements and private improvements on the land in the District and the continued habitability and enjoyment of such private improvements. For example, the areas in and surrounding the District, like those in much of the State, may be subject to earthquakes or other unpredictable seismic activity, however, the District is not located in a seismic special studies zone.

Other natural disasters could include, without limitation, landslides, floods, droughts or tornadoes. One or more natural disasters could occur and could result in damage to improvements of varying seriousness. The damage may entail significant repair or replacement costs and that repair or replacement may never occur either because of the cost, or because repair or replacement will not facilitate habitability or other use, or because other considerations preclude such repair or replacement. Under any of these circumstances there could be significant delinquencies in the payment of Special Taxes, and the value of the land in the District may well depreciate.

Recent California Drought. The area around the District, like most of the State, is prone to occasional drought. For example, the State experienced an extended drought period that began in 1987 and continued until the winter of 1992-93. California is also currently facing one of the most severe droughts on record. In January 2014, Governor Brown declared a drought State of Emergency and directed state officials to take all necessary actions to prepare for water shortages and directed local officials to reduce water usage by 20%. Recently, the City has achieved water

7.1.c
Packet Pg. 206 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -49-
consumption reduction through implementing planned water efficiency programs to address occasional drought conditions. The volatility of weather patterns make it difficult to predict how long drought conditions will persist, or how often they may reoccur. However, when drought conditions do occur, it can affect community water usage for the duration of the drought as cities and water agencies implement drought management plans that require water usage reduction.

Legal Requirements. Other events that may affect the value of land in the District include changes in the law or application of the law. Such changes may include, without limitation, local growth control initiatives, local utility connection moratoriums and local application of statewide tax and governmental spending limitation measures. Development in the District may also be adversely affected by the application of laws protecting endangered or threatened species.

Hazardous Substances. Any discovery of a hazardous substance detected on property within the District would affect the marketability and the value of some or all of the property in the District. In that event, the owners and operators of land within the District may be required by law to remedy conditions of the parcel relating to releases or threatened releases of hazardous substances. The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, sometimes referred to as “CERCLA” or the “Superfund Act,” is the most well-known and widely applicable of these laws. California laws with regard to hazardous substances are also applicable to property within the District and are as stringent as the federal laws. Under many of these laws, the owner (or operator) is obligated to remedy a hazardous substance condition of property whether or not the owner (or operator) has anything to do with creating or handling the hazardous substance. The effect, therefore, should any of the parcels be contaminated by a hazardous substance is to reduce the marketability and value of the land by the costs of remedying the condition, because the purchaser, upon becoming owner, will become obligated to remedy the condition just as is the seller.

The market value of the Appraised Property set forth in the Appraisal does not take into account the possible reduction in marketability and value of such property by reason of the possible liability of the owner (or operator) for the remedy of a hazardous substance condition on the property. Although the Authority is not aware that the owner (or operator) of the Appraised Property has a current liability for a hazardous substance with respect thereto, it is possible that such liabilities do currently exist and that the Authority is not aware of them.

Further, it is possible that liabilities may arise in the future with respect to land in the District resulting from the existence, currently, on land of a substance presently classified as hazardous but which has not been released or the release of which is not presently threatened, or may arise in the future resulting from the existence, currently, on the parcel of a substance not presently classified as hazardous but which may in the future be so classified. Further, such liabilities may arise not simply from the existence of a hazardous substance but from the method of handling it.

All of these possibilities could significantly affect the value of land within the District that is realizable upon a foreclosure sale.

Endangered and Threatened Species. It is illegal to harm or disturb any plants or animals in their habitat that have been listed as endangered species by the United States Fish & Wildlife Service under the Federal Endangered Species Act or by the California Fish & Game Commission under the California Endangered Species Act without a permit. Although the City believes that no federally listed endangered or threatened species would be affected by the proposed development within the District, other than any that are permitted by the entitlements already received, the discovery of an endangered plant or animal could delay development within the District or reduce the value of such property.

7.1.c
Packet Pg. 207 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -50-
Levy and Collection of Special Taxes
General. The principal source of payment of principal of and interest on the Bonds is the proceeds of the annual levy and collection of the Special Tax against property within the District.

As of the date of this Official Statement, there is only a single parcel in the District and subject to the Special Tax; however, in the future, additional parcels may be annexed into the District.

Limitation on Maximum Special Tax Rate. The annual levy of the Special Tax is subject to the Maximum Special Tax for each parcel authorized in the Special Tax Formula. The levy cannot be made at a higher rate even if the failure to do so means that the estimated proceeds of the levy and collection of the Special Tax, together with other available funds, will not be sufficient to pay debt service on the Bonds.

In addition to the Maximum Special Tax rate limitation in the Special Tax Formula, Section 53321(d) of the Act provides that the special tax levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within a community facilities district by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. In cases of significant delinquency, these factors may result in defaults in the payment of principal of and interest on the Bonds.

No Relationship Between Property Value and Special Tax Levy. Because the Special Tax formula set forth in the Special Tax Formula is not based on property value, the levy of the Special Tax will rarely, if ever, result in a uniform relationship between the value of particular parcels of Taxable Property and the amount of the levy of the Special Tax against those parcels.

Thus, there will rarely, if ever, be a uniform relationship between the value of the parcels of Taxable Property and their proportionate share of debt service on the Bonds, and certainly not a direct relationship.

Factors that Could Lead to Special Tax Deficiencies. The following are some of the factors that might cause the levy of the Special Tax on any particular parcel of Taxable Property to vary from the Special Tax that might otherwise be expected:

Transfers to Governmental Entities. The number of parcels of Taxable Property could be reduced through the acquisition of Taxable Property by a governmental entity and failure of the government to pay the Special Tax based upon a claim of exemption or, in the case of the federal government or an agency thereof, immunity from taxation, thereby resulting in an increased tax burden on the remaining Taxable Parcels (up to the Maximum Special Tax for each such Taxable Parcel) and, therefore, potentially insufficient funds available to pay det service on the Bonds.

Property owned by governmental entities is generally exempt from the levy of Special Taxes under the Act. However, pursuant to Section 53317.3 of the Act, if property not otherwise exempt from the Special Tax is acquired by a “public entity,” the Special Tax will continue to be levied on such property and will be enforceable against such public entity. Notwithstanding this provision of the Act, uncertainty exists as to whether property owned by a public entity could be successfully foreclosed upon to satisfy the amount of Special Taxes owed and there is no assurance that a governmental entity acquiring a parcel of Taxable Property would continue to pay the Special Taxes levied on such parcel.

Property Tax Delinquencies. Failure of the owners of Taxable Property to pay property taxes (and, consequently, the Special Tax), or delays in the collection of or inability to collect the

7.1.c
Packet Pg. 208 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -51-
Special Tax by tax sale or foreclosure and sale of the delinquent parcels, could result in a deficiency in the collection of Special Tax revenues. Because the District was formed in 2021, a history of Special Tax collection and delinquency rates in the District is not available.

Delays Following Special Tax Delinquencies and Foreclosure Sales. The Fiscal Agent Agreement generally provides that the Special Tax is to be collected in the same manner as ordinary ad valorem property taxes are collected and, except as provided in the special covenant for foreclosure described in “SECURITY FOR THE BONDS – Delinquent Payments of Special Tax; Covenant for Superior Court Foreclosure” and in the Act, is subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ordinary ad valorem property taxes. Under these procedures, if taxes are unpaid for a period of five years or more, the property is deeded to the State and then is subject to sale by the County.

If sales or foreclosures of property are necessary, there could be a delay in payments to owners of the Bonds pending such sales or the prosecution of foreclosure proceedings and receipt by the Authority of the proceeds of sale if the Reserve Fund is depleted. See “SECURITY FOR THE BONDS – Delinquent Payments of Special Tax; Covenant for Superior Court Foreclosure.” The ability of the Authority to collect interest and penalties specified by State law and to foreclose against properties having delinquent Special Tax installments may be limited in certain respects with regard to properties in which the Federal Deposit Insurance Corporation (the “FDIC”) has or obtains an interest. The FDIC would obtain such an interest by taking over a financial institution that has made a loan that is secured by property within the District.

Other laws generally affecting creditors’ rights or relating to judicial foreclosure may affect the ability to enforce payment of Special Taxes or the timing of enforcement of Special Taxes. For example, the Soldiers and Sailors Civil Relief Act of 1940 affords protections such as a stay in enforcement of the foreclosure covenant, a six-month period after termination of military service to redeem property sold to enforce the collection of a tax or assessment and a limitation on the interest rate on the delinquent tax or assessment to persons in military service if the court concludes the ability to pay such taxes or assessments is materially affected by reason of such service.

Bankruptcy and Foreclosure Delays
The payment of the Special Tax and the ability of the District to foreclose the lien of a delinquent unpaid tax, as discussed in “SECURITY FOR THE BONDS — Delinquent Payments of Special Tax; Covenant for Superior Court Foreclosure,” may be limited by bankruptcy, insolvency or other laws generally affecting creditors’ rights or by the laws of the State of California relating to judicial foreclosure. The various legal opinions to be delivered concurrently with the delivery of the Bonds (including Bond Counsel’s approving legal opinion) will be qualified as to the enforceability of the various legal instruments by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights, by the application of equitable principles and by the exercise of judicial discretion in appropriate cases.

Although bankruptcy proceedings would not cause the Special Taxes to become extinguished, bankruptcy of a property owner could result in a delay in prosecuting superior court foreclosure proceedings and could result in the possibility of delinquent Special Tax installments not being paid in full. Such a delay would increase the likelihood of a delay or default in payment of the principal of and interest on the Bonds. To the extent that property in the District continues to be owned by a single (or limited number of) property owner(s), the chances are increased that the

7.1.c
Packet Pg. 209 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -52-
Reserve Fund established for the Bonds could be fully depleted during any such delay in obtaining payment of delinquent Special Taxes. As a result, sufficient moneys would not be available in the Reserve Fund for transfer to the Bond Fund to make up shortfalls resulting from delinquent payments of the Special Tax and thereby to pay principal of and interest on the Bonds on a timely basis.

To the extent that bankruptcy or similar proceedings were to involve the currently single property owner (or a future large property owner), the chances would increase the likelihood that the Bond Reserve Fund could be fully depleted during any resulting delay in receiving payment of delinquent Special Taxes. As a result, sufficient monies would not be available in the Bond Reserve Fund for transfer to the Bonds Redemption Account to make up any shortfalls resulting from delinquent payments of the Special Tax and thereby to pay principal of and interest on the Bonds on a timely basis.

Parity Taxes and Special Assessments; Private Debt
The Authority, the City, the County and certain other public agencies are authorized by the Act to form other community facilities districts and improvement areas and, under other provisions of State law, to form special assessment districts, either or both of which could include all or a portion of the land within the District.

Property in the District is currently subject to certain overlapping tax and assessment liens, as shown in the overlapping debt statement. Property in the District is also subject to the special tax of a recently formed community facilities districts to fund services and known as Community Facilities District No. 2021-2 (Villages of Patterson Public Safety/Fire Protection Services) which authorized an annual special tax of approximately $0.052 per square foot for Fiscal Year 2018-16.

The property is not currently subject to any other special tax or assessment liens (other than the lien of the Special Tax). See “SPECIAL TAX REVENUE AND VALUE OF PROPERTY WITHIN THE DISTRICT – Overlapping Liens and Priority of Lien.” In general, as long as the Special Tax is collected on the County tax roll, the Special Tax and all other taxes, assessments and charges also collected on the tax roll are on a parity, that is, are of equal priority. Questions of priority become significant when collection of one or more of the taxes, assessments or charges is sought by some other procedure, such as foreclosure and sale.

In the event of proceedings to foreclose for delinquency of Special Taxes securing the Bonds, the Special Tax will be subordinate only to existing prior governmental liens, if any. Otherwise, in the event of such foreclosure proceedings, the Special Taxes will generally be on a parity with the other taxes, assessments and charges, and will share the proceeds of such foreclosure proceedings on a pro-rata basis. Although the Special Taxes will generally have priority over nongovernmental liens on a taxable parcel, regardless of whether the non-governmental liens were in existence at the time of the levy of the Special Tax or not, this result may not apply in the case of bankruptcy. See “–Bankruptcy and Foreclosure Delays” above.

There can be no assurance that property owner(s) within the District will not petition for the formation of other community facilities districts and improvement areas or for a special assessment district or districts and that parity special taxes or special assessments will not be levied by the County or some other public agency to finance additional public facilities. In addition to liens for special taxes or assessments to finance public improvements of benefit to land within the District, owners of property may obtain loans from banks or other private sources which loans may be secured by a lien on land in the District. Such loans would increase amounts owed by the

7.1.c
Packet Pg. 210 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -53-
owner(s) of such land with respect to development of its property in the District. However, the lien of such loans would be subordinate to the lien of the Special Taxes.

Tax Delinquencies
Under provisions of the Act, the Special Taxes will be billed to the properties within the District on the regular property tax bill(s) sent to owner(s) of such property. Such Special Tax installments are due and payable, and bear the same penalties and interest for nonpayment, as do regular property tax installments. Special Tax installment payments cannot be made separately from property tax payments. Therefore, the unwillingness or inability of a property owner to pay regular property tax bills as evidenced by property tax delinquencies may also indicate an unwillingness or inability to make regular property tax payments and Special Tax payments in the future.

The annual Special Tax will be billed and collected in two installments payable without penalty by December 10 and April 10. In the event such Special Taxes are not timely paid, moneys available to pay debt service on the Bonds becoming due on the subsequent respective March 1 and September 1 may be insufficient, except to the extent moneys are available in the Reserve Fund.

In the event of non-payment of Special Taxes, funds in the Reserve Fund, if available, may be used to pay principal of and interest on the Bonds. If funds in the Reserve Fund for the Bonds are depleted, the funds can be replenished from the proceeds of the levy and collection of the Special Tax that are in excess of the amount required to pay all amounts to be paid to the Bond holders pursuant to the Fiscal Agent Agreement. However, no replenishment from the proceeds of a Special Tax levy can occur as long as the proceeds that are collected from the levy of the Special Tax against property within the District at the maximum Special Tax rates, together with other available funds, remains insufficient to pay all such amounts. Thus it is possible that the Reserve Fund will be depleted and not be replenished by the levy of the Special Tax.

See “SECURITY FOR THE BONDS — Delinquent Payments of Special Tax; Covenant for Superior Court Foreclosure” for a discussion of the provisions which apply, and procedures which the Authority is obligated to follow, in the event of delinquency in the payment of Special Taxes.

See also “SECURITY FOR THE BONDS — Special Tax Methodology – Limitation on Increases in Special Tax Levy” for a discussion of the limitations imposed by the Special Tax Formula and the Act applicable to Special Tax increases.

No Acceleration Provisions
The Bonds do not contain a provision allowing for the acceleration of the Bonds in the event of a payment default or other default under the terms of the Bonds or the Fiscal Agent Agreement. Under the Fiscal Agent Agreement, a Bondowner is given the right for the equal benefit and protection of all Bondowner similarly situated to pursue certain remedies. So long as the Bonds are in book-entry form, DTC will be the sole Bondowner and will be entitled to exercise all rights and remedies of Bondowner.

Ballot Initiatives
From time to time, initiative measures qualify for the State ballot pursuant to the State’s constitutional initiative process and those measures could be adopted by California voters. The adoption of any such initiative might place limitations on the ability of the State, the Authority, the

7.1.c
Packet Pg. 211 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -54-
County or other local districts to increase revenues or to increase appropriations or on the completion of development in the District. See “–Property Values and Property Development – Land Development” above. See also “–Voter Initiatives” below.

Voter Initiatives
Under the California Constitution, the power of initiative is reserved to the voters for the purpose of enacting statutes and constitutional amendments. Since 1978, the voters have exercised this power through the adoption of Proposition 13 and similar measures, including Proposition 218, which was approved in the general election held on November 5, 1996, and Proposition 26, which was approved on November 2, 2010.

Any such initiative may affect the collection of fees, taxes and other types of revenue by local agencies such as the District. Subject to overriding federal constitutional principles, such collection may be materially and adversely affected by voter-approved initiatives, possibly to the extent of creating cash-flow problems in the payment of outstanding obligations such as the Bonds.

Proposition 218—Voter Approval for Local Government Taxes—Limitation on Fees, Assessments, and Charges—Initiative Constitutional Amendment, added Articles XIIIC and XIIID to the California Constitution, imposing certain vote requirements and other limitations on the imposition of new or increased taxes, assessments and property-related fees and charges.

On November 2, 2010, California voters approved Proposition 26, entitled the “Supermajority Vote to Pass New Taxes and Fees Act”. Section 1 of Proposition 26 declares that Proposition 26 is intended to limit the ability of the State Legislature and local government to circumvent existing restrictions on increasing taxes by defining the new or expanded taxes as “fees.” Proposition 26 amended Articles XIIIA and XIIIC of the State Constitution. The amendments to Article XIIIA limit the ability of the State Legislature to impose higher taxes (as defined in Proposition 26) without a two-thirds vote of the Legislature. Article XIIIC requires that all new local taxes be submitted to the electorate before they become effective. Taxes for general governmental purposes require a majority vote and taxes for specific purposes (“special taxes”) require a two-thirds vote.

The Special Taxes and the Bonds were each authorized by not less than a two-thirds vote of the landowners within the District who constituted the qualified electors at the time of such voted authorization. The District believes, therefore, that issuance of the Bonds does not require the conduct of further proceedings under the Act, Proposition 218 or Proposition 26.

Like their antecedents, Proposition 218 and Proposition 26 are likely to undergo both judicial and legislative scrutiny before the impact on the District can be determined. Certain provisions of Proposition 218 and Proposition 26 may be examined by the courts for their constitutionality under both State and federal constitutional law, the outcome of which cannot be predicted.

Case Law Related to the Mello-Roos Act Voting
On August 1, 2014, the California Court of Appeal, Fourth Appellate District, issued its opinion in City of San Diego v. Melvin Shapiro, et al. (D063997). The case involved a Convention Center Facilities District (the “CCFD”) established by the City of San Diego. The CCFD is a financing district established under San Diego’s city charter (the “Charter”) and was intended to

7.1.c
Packet Pg. 212 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -55-
function much like a community facilities district established under the Act. The CCFD was comprised of all of the real property in the entire city. However, the CCFD special tax was to be levied only on properties in the CCFD that were improved with a hotel.

At the election to authorize the CCFD special tax, the CCFD proceedings limited the electorate to owners of hotel properties and lessees of real property owned by a governmental entity on which a hotel was located. Registered voters in the City of San Diego were not permitted to vote. This definition of the qualified electors of the CCFD was based on Section 53326(c) of the Act, which generally provides that, if a special tax will not be apportioned in any tax year on residential property, the legislative body may provide that the vote shall be by the landowners of the proposed community facilities district whose property would be subject to the special tax.

The San Diego Court held that the CCFD special tax election did not comply with the Charter and with applicable provisions of the California Constitution -- specifically Article XIIIA, section 4 (“Cities, Counties and special districts, by a two-thirds vote of the qualified electors of such district, may impose special taxes on such district….”) and Article XIIIC, section 2(d) (“No local government may impose, extend, or increase any special tax unless and until that tax is submitted to the electorate and approved by a two-thirds vote.”) -- because the electors in the CCFD election should have been the registered voters residing within the CCFD (the boundaries of which were coterminous with the boundaries of the City of San Diego).

As to the District, there were no registered voters within the District at the time of the election to authorize the Special Taxes. Significantly, the San Diego Court expressly stated that it was not addressing the validity of a landowner election to impose special taxes on property pursuant to the Act in situations where there are fewer than 12 registered voters. Therefore, by its terms, the San Diego Court’s holding does not apply to the special tax election in the District.

Moreover, Sections 53341 and 53359 of the Act establish a limited period of time in which special taxes levied under the Act may be challenged by a third party:
53341. Any action or proceeding to attack, review, set aside, void, or annul the levy of a special tax or an increase in a special tax pursuant to [the Act] shall be commenced within 30 days after the special tax is approved by the voters . . . . 53359. An action to determine the validity of bonds issued pursuant to [the Act] or the validity of any special taxes levied pursuant to [the Act] . . . shall . . . be commenced within 30 days after the voters approve the issuance of the bonds or the special tax . . . .

Landowner voters approved the Special Taxes and the issuance of bonds for the District in compliance with all applicable requirements of the Act on June 2, 2021. Therefore, pursuant to Sections 53341 and 53359 of the Act, the statute of limitations period to challenge the validity of the Special Tax has expired.

Because the San Diego Court expressly stated that it did not consider the facts presented by the District and because the period for challenging the Special Taxes has passed, the Authority believes the Special Taxes are valid and cannot be challenged.

7.1.c
Packet Pg. 213 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -56-
Pandemic Diseases
In recent years, public health authorities have warned of threats posed by outbreaks of disease and other public health threats. Pandemic diseases arising in the future could have significant adverse health and financial impacts throughout the world, leading to loss of jobs and personal financial hardships, and/or actions by federal, State and local governmental authorities to contain or mitigate the effects of an outbreak.

Taxpayer assistance measures may include deferral of due dates of property taxes, which was an assistance program during the COVID-19 pandemic, and with or without a deferral some taxpayers may be unable to make their property and Special Tax payments. No assurance can be given that the property tax payment dates will not be deferred in the future, which may cause a delay in the receipt of Special Taxes. In addition, home values may be affected by a reduction in demand stemming from personal finances, or general widespread economic circumstances resulting from pandemic diseases.

Cyber Security
The City, like many other public and private entities, relies on computer and other digital networks and systems to conduct its operations. As a recipient and provider of personal, private or other sensitive electronic information, the City is potentially subject to multiple cyber threats, including without limitation hacking, viruses, ransomware, malware and other attacks. The City’s technology department has conducted cybersecurity training, the uses spam filtering, routinely sends out e-mails to staff regarding cyber security in an attempt to keep staff informed of cyber security risks, and plans a more robust to be in place by mid-2022. No assurance can be given that the City’s efforts to manage cyber threats and attacks will be successful in all cases, or that any such attack will not materially impact the operations or finances of the City or the District, or the administration of the Bonds. The City is also reliant on other entities and service providers in connection with the administration of the Bonds, including without limitation the County tax collector for the levy and collection of Special Taxes, the Fiscal Agent, and the dissemination agent. No assurance can be given that the City, the District and these other entities will not be affected by cyber threats and attacks in a manner that may affect the Bond owners.

7.1.c
Packet Pg. 214 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -57-

CONSTITUTIONAL LIMITATIONS ON TAXATION AND APPROPRIATIONS Article XIIIA of the California Constitution, commonly known as “Proposition 13,” provides that each county will levy the maximum ad valorem property tax permitted by Proposition 13 and will distribute the proceeds to local agencies in accordance with an allocation formula based in part on pre-Proposition 13 ad valorem property tax rates levied by local agencies.

Article XIIIA limits the maximum ad valorem tax on real property to 1% of “full cash value,” which is defined as the County Assessor’s valuation of real property as shown on the 1975-76 tax bill under full cash value, or, thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment. The full cash value may be adjusted annually to reflect increases of no more than 2% per year or decreases in the consumer price index or comparable local data, or declining property value caused by damage, destruction or other factors.

Article XIIIA exempts from the 1% tax limitation any taxes to repay indebtedness approved by the voters prior to July 1, 1978, and requires a vote of two-thirds of the qualified electorate to impose Special Taxes or any additional ad valorem, sales, or transaction taxes on real property. In addition, Article XIIIA requires the approval of two-thirds of all members of the State Legislature to change any State laws resulting in increased tax revenues. On June 3, 1986, California voters approved an amendment to Article XIIIA of the California Constitution to allow local governments and school districts to raise their property tax rates above the constitutionally mandated 1% ceiling for the purpose of paying off certain new general obligation debt issued for the acquisition or improvement of real property and approved by two-thirds of the votes cast by the qualified electorate. If any such voter-approved debt is issued, it may be on a parity with the lien of the Special Tax on the parcels within the District.

State and local government agencies in the State, and the State itself are subject to annual appropriation limits, imposed by Article XIIIB of the State Constitution. Article XIIIB prohibits government agencies and the State from spending “appropriations subject to limitation” in excess of the appropriations limits imposed. “Appropriations subject to limitation” are authorizations to spend “proceeds of taxes,” which consist of tax revenues, certain state subventions and certain other funds, including proceeds from regulatory licenses, user charges or other fees to the extent that such proceeds exceed the cost reasonably borne by such entity in providing the regulation, product or service. No limit is imposed on appropriations of funds which are not “proceeds of taxes” such as debt service on indebtedness existing or authorized before January 1, 1979, or subsequently authorized by the voters, appropriations required to comply with mandates of courts or the federal government, reasonable user charges or fees and certain other non-tax funds.

Articles XIIIC and Article XIIID similarly involve limitations on the ability of the State and local governments to impose taxes, fees and charges. See “SPECIAL RISK FACTORS – Voter Initiatives.”

7.1.c
Packet Pg. 215 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -58-

CONTINUING DISCLOSURE
The Authority, for and on behalf of the District, has covenanted for the benefit of owners of the 2024 Bonds to provide certain financial information and operating data relating to the District by not later than nine months after the end of the Authority’s fiscal year (presently June 30) in each year (the “Authority Annual Report”) commencing with its report for the 2023-24 fiscal year (due April 1, 2025) and to provide notices of the occurrence of certain enumerated events.

The Authority Annual Report and notices of listed events will be filed with the Municipal Securities Rulemaking Board via its EMMA website. The covenants of the Authority have been made in order to assist the Underwriter in complying with Securities Exchange Commission Rule 15c2-12(b)(5) (the “Rule”). The specific nature of the information to be contained in the Annual Report, the Developer Periodic Reports or the notices of listed events by the City and KB is summarized in “APPENDIX D — Forms of Continuing Disclosure Certificate.” The Authority believes that for the past 5-year period it currently is in material compliance with all of its continuing disclosure undertakings. The Authority has engaged Goodwin Consulting Group to assist with the preparation and filing of its continuing disclosure reports, including as to the District, in order to ensure compliance with future continuing disclosure obligations. [Underwriter to Confirm]

UNDERWRITING
The Bonds were purchased through negotiation by Hilltop Securities, Inc., as underwriter (the “Underwriter”). The Underwriter agreed to purchase the Bonds at a price of $_________ (which is equal to the par amount of the Bonds, less a net original issue discount of $_________ and less the Underwriter’s discount of $_________). The initial public offering prices set forth on the cover page hereof may be changed by the Underwriter. The Underwriter may offer and sell the Bonds to certain dealers and others at a price lower than the public offering prices set forth on the cover page hereof.

MUNICIPAL ADVISOR
The Authority has retained Del Rio Advisors LLC of Modesto, California, as municipal advisor (the “Municipal Advisor”) in connection with the issuance of the Bonds. The Municipal Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or assume responsibility for the accuracy, completeness, or fairness of the information contained in this Official Statement. The Municipal Advisor is an independent financial advisory firm and is not engaged in the business of underwriting, trading or distributing municipal securities or other public securities.

LEGAL OPINION
The validity of the Bonds and certain other legal matters are subject to the approving opinion of Jones Hall, a Professional Law Corporation, Bond Counsel. A complete copy of the proposed form of Bond Counsel opinion is set forth in “APPENDIX E – Form of Opinion of Bond

7.1.c
Packet Pg. 216 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -59-
Counsel,” and the final opinion will be made available to registered owners of the Bonds at the time of delivery. The fees of Bond Counsel are contingent upon the sale and delivery of the Bonds.

TAX MATTERS
In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject, however to the qualifications set forth below, under existing law, the interest on the 2024 Bonds is excluded from gross income for federal income tax purposes and such interest is not an item of tax preference for purposes of the federal alternative minimum tax.

Interest on the 2024 Bonds may be subject to the corporate alternative minimum tax.

The opinions set forth in the preceding paragraph are subject to the condition that the District comply with all requirements of the Internal Revenue Code of 1986, as amended (the “Tax Code”) that must be satisfied subsequent to the issuance of the 2024 Bonds. The District has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of such interest in gross income for federal income tax purposes to be retroactive to the date of issuance of the 2024 Bonds.

If the initial offering price to the public (excluding bond houses and brokers) at which a 2024 Bond is sold is less than the amount payable at maturity thereof, then such difference constitutes “original issue discount” for purposes of federal income taxes and State of California personal income taxes. If the initial offering price to the public (excluding bond houses and brokers) at which a 2024 Bond is sold is greater than the amount payable at maturity thereof, then such difference constitutes “original issue premium” for purposes of federal income taxes and State of California personal income taxes. De minimis original issue discount and original issue premium is disregarded.

Under the Tax Code, original issue discount is treated as interest excluded from federal gross income and exempt from State of California personal income taxes to the extent properly allocable to each owner thereof subject to the limitations described in the first paragraph of this section. The original issue discount accrues over the term to maturity of the 2024 Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). The amount of original issue discount accruing during each period is added to the adjusted basis of such 2024 Bonds to determine taxable gain upon disposition (including sale, redemption, or payment on maturity) of such 2024 Bond. The Tax Code contains certain provisions relating to the accrual of original issue discount in the case of purchasers of the 2024 Bonds who purchase the 2024 Bonds after the initial offering of a substantial amount of such maturity. Owners of such 2024 Bonds should consult their own tax advisors with respect to the tax consequences of ownership of 2024 Bonds with original issue discount, including the treatment of purchasers who do not purchase in the original offering, the allowance of a deduction for any loss on a sale or other disposition, and the treatment of accrued original issue discount on such 2024 Bonds under federal individual and corporate alternative minimum taxes.

Under the Tax Code, original issue premium is amortized on an annual basis over the term of the 2024 Bond (said term being the shorter of the 2024 Bond’s maturity date or its call date).

The amount of original issue premium amortized each year reduces the adjusted basis of the owner of the 2024 Bond for purposes of determining taxable gain or loss upon disposition. The amount of original issue premium on a 2024 Bond is amortized each year over the term to maturity of the 2024 Bond on the basis of a constant interest rate compounded on each interest or principal

7.1.c
Packet Pg. 217 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax -60-
payment date (with straight-line interpolations between compounding dates). Amortized 2024 Bond premium is not deductible for federal income tax purposes. Owners of premium 2024 Bonds, including purchasers who do not purchase in the original offering, should consult their own tax advisors with respect to State of California personal income tax and federal income tax consequences of owning such 2024 Bonds.

In the further opinion of Bond Counsel, interest on the 2024 Bonds is exempt from California personal income taxes.

Owners of the 2024 Bonds should also be aware that the ownership or disposition of, or the accrual or receipt of interest on, the 2024 Bonds may have federal or state tax consequences other than as described above. Bond Counsel expresses no opinion regarding any federal or state tax consequences arising with respect to the 2024 Bonds other than as expressly described above.

NO RATINGS
The Authority has not applied to a rating agency for the assignment of a rating to the 2024 Bonds and does not contemplate applying for a rating.

NO LITIGATION
At the time of delivery of and payment for the 2024 Bonds, the Authority Attorney will deliver his opinion that to the best of its knowledge there is no action, suit, proceeding, inquiry or investigation at law or in equity before or by any court or regulatory agency pending against the Authority affecting its existence or the titles of its officers to office or seeking to restrain or to enjoin the issuance, sale or delivery of the 2024 Bonds, the application of the proceeds thereof in accordance with the Fiscal Agent Agreement, or the collection or application of the Special Tax to pay the principal of and interest on the 2024 Bonds, or in any way contesting or affecting the validity or enforceability of the 2024 Bonds, the Fiscal Agent Agreement or any action of the Authority contemplated by any of said documents, or in any way contesting the completeness or accuracy of this Official Statement or any amendment or supplement thereto, or contesting the powers of the Authority or its authority with respect to the 2024 Bonds or any action of the Authority contemplated by any of said documents.

EXECUTION
The execution and delivery of this Official Statement by the Authority has been duly authorized by the Board on behalf of the District.

WEST PATTERSON FINANCING AUTHORITY
By:

Executive Director

7.1.c
Packet Pg. 218 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax A-1

APPENDIX A

THE CITY OF PATTERSON AND STANISLAUS COUNTY DEMOGRAPHIC INFORMATION The District is located in the City of Patterson (“City”) in Stanislaus County (“County”), California (“State”). The financial and economic data for the City are presented for information purposes only. The Bonds are not a debt or obligation of the City, the West Patterson Financing Authority (“Authority”), the County or the State, but are a limited obligation of the Authority secured solely by the funds held pursuant to the Fiscal Agent Agreement.

The County is located approximately 90 minutes southeast from both the City of San Francisco and Silicon Valley, and is known as the heartland of California’s Central Valley. The City lies in the central area of the County.

With a current population of 24,317, the City is a rural, small town surrounded by agricultural land. With agriculture as its primary economic base, orchards of apricots, almonds and walnuts, as well as row crops of dry beans, tomatoes, broccoli, spinach, peas and melons play an important role in Patterson’s history. Patterson is the apricot capital of the world.

Municipal Government
The City Council of the City is composed of five members, a Mayor and four Council Members, elected at large by the citizens of Patterson. The Mayor serves a two-year term, and Council Members serve four-year overlapping terms. The Mayor presides over the meetings and performs other ceremonial duties. As the policy-making legislative body, the City Council is responsible for the enactment of all programs, policies and services of the City.

The City Council acts upon all legislative matters concerning the City, approving and adopting all ordinances, resolutions, contracts and other matters requiring overall policy decisions and leadership. The Council appoints the City Manager, City Attorney and various other commissions, boards and citizen advisory committees, all of which ensure broad-based input into the affairs of the City.

Population
The following table lists population figures for the County and City for the last five calendar years for which data is available.

Table A-1

CITY OF PATTERSON, STANISLAUS COUNTY,

STATE OF CALIFORNIA
Population Estimates, as of January 1
2019 2020 2021 2022 2023
Patterson 23,086 23,150 23,658 24,142 24,317
Stanislaus County 553,131 554,931 551,353 548,719 545,939 State of California 39,605,361 39,648,938 39,286,510 39,078,674 38,940,231 Source: California State Department of Finance.

7.1.c
Packet Pg. 219 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax A-2
Principal Employers
The following table shows the principal employers in the City for fiscal year ending June 30, 2022.

PRINCIPAL EMPLOYERS
City of Patterson
As of June 30, 2022
Employer
Number of
Employees
Patterson Joint Unified School District 759
Amazon Fulfillment Center 702
CVS Caremaker Distribution Center 521
Grainger Distribution Center 433
Walmart Supercenter 296
City of Patterson 248
Traina Foods 201
King’s Roofing 139
Restoration Hardware 137
Advanced Linen Service 85
Total – Top Ten 3,521
Total City-Wide Employment 10,200
Source: City of Patterson Comprehensive Annual Financial Report for Fiscal Year 2021-22.

7.1.c
Packet Pg. 220 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax A-3
Employment and Industry
The unemployment rate in Stanislaus County was 6.5 percent in July 2023, down from a revised 6.8 percent in June 2023, and above the year-ago estimate of 5.3 percent. This compares with an unadjusted unemployment rate of 4.8 percent for California and 3.8 percent for the nation during the same period. The following sets forth employment information for the Modesto MSA in the County for the prior five years.

Table A-2

MODESTO MSA, STANISLAUS COUNTY
Civilian Labor Force, Employment and Unemployment; Employment by Industry (Annual Averages)
March 2022 Benchmark
2018 2019 2020 2021 2022
Civilian Labor Force (1) 243,100 242,900 242,500 240,200 242,300 Employment 227,300 228,100 215,900 220,200 229,100
Unemployment 15,700 14,800 26,600 20,000 13,100
Unemployment Rate 6.5% 6.1% 11.0% 8.3% 5.4%
Wage and Salary Employment: (2)
Agriculture 14,400 14,900 14,500 14,000 14,200
Mining, Logging, and Construction 10,200 10,500 9,800 10,700 11,400 Manufacturing 21,600 21,400 21,200 21,800 22,800
Wholesale Trade 6,300 6,200 5,900 5,600 5,700
Retail Trade 23,200 22,800 21,900 23,000 23,200
Transportation, Warehousing & Utilities 7,900 8,700 9,000 9,100 9,900 Information 1,000 1,000 800 800 800
Financial Activities 5,300 5,300 5,100 4,900 5,000
Professional & Business Services 15,400 15,300 15,100 15,400 15,300 Educational & Health Services 33,600 34,700 34,600 35,000 35,700 Leisure & Hospitality 19,300 19,200 15,800 18,200 20,600 Other Services 5,800 5,900 5,100 5,500 6,100
Federal Government 800 800 900 700 700
State Government 2,200 2,100 2,100 2,000 2,200
Local Government 26,600 27,400 25,900 25,700 26,800
Total, All Industries 193,600 196,200 187,600 192,400 200,300 (1) Labor force data is by place of residence; includes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike.
(2) Industry employment is by place of work; excludes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike.
(3) Totals may not add due to rounding.

Source: State of California Employment Development Department.

7.1.c
Packet Pg. 221 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax A-4
The following tables list the major employers in the County as of September 2023.

Table A-3

STANISLAUS COUNTY
Major Employers
(As of September 2023)
Employer Name Location Industry
Amazon Fulfillment Ctr Patterson Mail Order Fulfillment Service Bartles & Jaymes Co Modesto Wineries (mfrs)
Bronco Wine Co Ceres Wineries (mfrs)
Conagra Brands Inc Oakdale Food Products (whls)
Del Monte Foods Inc Modesto Food Products & Manufacturers Duarte Nursery Inc Hughson Nurserymen
E & J Gallo Winery Modesto Wineries (mfrs)
Emanuel Medical Ctr Turlock Hospitals
Foster Farms Turlock Poultry Processing Plants (mfrs)
Frito-Lay Inc Modesto Potato Chips (whls)
Health Services Agency Modesto Clinics
Memorial Medical Ctr Modesto Hospitals
Modesto Bee Modesto Newspapers (publishers/Mfrs)
Modesto Irrigation District Modesto Utilities
Oak Valley Hospital District Oakdale Health Care Management Pacific Southwest Contnr LLC Modesto Corrugated & Solid Fiber Boxes (mfrs) Patterson City Office Modesto City Government-Executive Offices Stanislaus County Welfare Dept Modesto Government Offices-County Storer Coachways Modesto Buses-Charter & Rental
Sysco Central Ca-Whls Rstrnt Modesto Food Products (whls) Temsa Turlock Nonclassified Establishments
Turlock Irrigation District Turlock Electric Companies
USPS Modesto Post Offices
Vsp Products Inc Newman Dried/Dehydrated Fruits Vegetables Walmart Modesto Department Stores
Source: State of California Employment Development Department; extracted from America’s Labor Market Information System Employer Database, 2023 2nd Edition.

7.1.c
Packet Pg. 222 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax A-5
Building Activity
The following charts show the total number of residential building permits issued in the City and the County, the value of those permits and the value of non-residential permits, for each of the last five calendar years for which data is available, from calendar years 2018 through 2022.

Table A-4

CITY OF PATTERSON
Total Building Permit Valuations
(Valuations In Thousands)
2018 2019 2020 2021 2022
Permit Valuation
New Single-family $7,000.5 $5,251.7 $22,943.8 $24,297.3 $35,964.2 New Multi-family 0.0 765.2 0.0 0.0 5,040.2
Res. Alterations/Additions 536.1 16.0 83.6 210.7 1,473.6 Total Residential 7,536.6 6,032.9 23,027.4 24,508.0 42,478.0 New Commercial 10,290.4 4,181.5 1,609.9 2,504.1 3,997.1 New Industrial 0.0 0.0 0.0 0.0 0.0
New Other 1,385.1 926.5 888.0 1,616.0 4,209.2
Com. Alterations/Additions 1,442.5 1,561.6 226.1 780.9 1,149.1 Total Nonresidential 13,118.0 6,669.6 2,724.0 4,901.0 9,355.4 New Dwelling Units
Single Family 26 28 98 86 84
Multiple Family 0 4 0 0 30
TOTAL 26 32 98 86 114
Source: Construction Industry Research Board, Building Permit Summary.

Table A-5

STANISLAUS COUNTY
Total Building Permit Valuations
(Valuations in Thousands)
2018 2019 2020 2021 2022
Permit Valuation
New Single-family $141,972.2 $117,995.9 $138,915.1 $138,915.1 $217,803.9 New Multi-family 1,268.9 19,128.6 18,152.6 18,152.6 12,867.1 Res. Alterations/Additions 33,278.3 36,671.9 31,153.4 31,153.3 40,236.7 Total Residential 176,519.4 173,796.4 188,221.1 188,221.0 270,907.7 New Commercial 96,200.9 97,980.1 65,798.9 65,798.9 131,558.5 New Industrial 12,626.4 30,302.6 17,429.8 17,429.8 120.0 New Other 87,441.3 30,777.0 30,371.3 30,371.3 54,393.4
Com. Alterations/Additions 54,449.5 104,465.8 68,270.3 68,270.3 155,867.6 Total Nonresidential 250,718.1 263,525.5 181,870.3 181,870.3 341,939.5 New Dwelling Units
Single Family 684 561 646 646 842
Multiple Family 10 178 110 110 109
TOTAL 694 739 756 756 951
Source: Construction Industry Research Board, Building Permit Summary.

7.1.c
Packet Pg. 223 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax A-6
Taxable Sales
A summary of historic taxable sales within the City during the past five years in which data is available is shown in the following table. Total taxable sales during the first quarter of calendar year 2023 in the City of Patterson were reported to be $254,375,593, a 3.50% increase over the total taxable sales of $245,764,498 reported during calendar year 2022.

Table A-6

CITY OF PATTERSON
Taxable Transactions
(Dollars In Thousands)
Retail Stores Total All Outlets
Number
of Permits
Taxable
Transactions
Number
of Permits
Taxable
Transactions
2018 296 $234,336 432 $480,660
2019 288 257,099 433 505,236
2020 305 256,562 472 570,363
2021 317 751,927 463 1,061,667
2022 329 721,281 489 1,081,592
Source: State Department of Tax and Fee Administration.

A summary of historic taxable sales within the County during the past five years in which data is available is shown in the following table. Total taxable sales during the first quarter of calendar year 2023 in the County were reported to be $2,917,482,064 a 3.89% decrease of the total taxable sales of $3,035,468,974 reported during calendar year 2022.

Table A-7

STANISLAUS COUNTY
Taxable Transactions
(Dollars in Thousands)
Retail Stores Total All Outlets
Number
of Permits
Taxable
Transactions
Number
of Permits
Taxable
Transactions
2018 7,297 $6,245,295 11,647 $9,298,941
2019 7,442 6,465,963 12,084 9,679,826
2020 8,329 6,882,397 13,500 10,087,295
2021 7,848 8,695,930 12,854 12,336,565
2022 7,903 8,659,163 13,158 12,972,355
Source: State Department of Tax and Fee Administration.

7.1.c
Packet Pg. 224 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax A-7
Effective Buying Income
“Effective Buying Income” is defined as personal income less personal tax and nontax payments, a number often referred to as “disposable” or “after-tax” income. Personal income is the aggregate of wages and salaries, other labor-related income (such as employer contributions to private pension funds), proprietor’s income, rental income (which includes imputed rental income of owner-occupants of non-farm dwellings), dividends paid by corporations, interest income from all sources, and transfer payments (such as pensions and welfare assistance). Deducted from this total are personal taxes (federal, state and local), nontax payments (fines, fees, penalties, etc.) and personal contributions to social insurance.

According to U.S. government definitions, the resultant figure is commonly known as “disposable personal income.”
The following table summarizes the total effective buying income for the City, the County, the State and the United States for the period 2019 through 2023.

Table A-8

CITY OF PATTERSON, STANISLAUS COUNTY,

STATE OF CALIFORNIA
Effective Buying Income
As of January 1, 2019 through 2023
Year Area
Total Effective
Buying Income
(000’s Omitted)
Median Household
Effective Buying
Income
2019 City of Patterson $435,633 $53,695
Stanislaus County 11,772,166 51,340
California 1,183,264,399 62,637
United States 9,017,967,563 52,841
2020 City of Patterson $469,838 $63,143
Stanislaus County 12,241,056 55,212
California 1,243,564,816 65,870
United States 9,487,165,436 55,303
2021 City of Patterson $492,209 $64,872
Stanislaus County 12,472,918 55,452
California 1,290,894,604 67,956
United States 9,809,944,764 56,790
2022 City of Patterson $541,652 $70,358
Stanislaus County 13,889,615 63,128
California 1,452,426,153 77,058
Unite States 11,208,582,541 64,448
2023 City of Patterson $561,791 $69,561
Stanislaus County 14,125,584 63,716
California 1,461,799,662 77,175
United States 11,454,846,397 65,326
Source: Claritas, LLC.

7.1.c
Packet Pg. 225 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax A-1

APPENDIX B

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX

7.1.c
Packet Pg. 226 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax C
-1

APPENDIX C

THE APPRAISAL

7.1.c
Packet Pg. 227 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax D-1

APPENDIX D

FORM OF CONTINUING DISCLOSURE AGREEMENT
This CONTINUING DISCLOSURE AGREEMENT (this “Disclosure Agreement”) is executed and delivered by the WEST PATTERSON FINANCING AUTHORITY (the “Authority”) in connection with the execution and delivery of its West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson) Special Tax Bonds Series 2024 (the “Bonds”). The Bonds are being executed and delivered pursuant to a Fiscal Agent Agreement, dated as of October 1, 2021, as supplemented and amended by Supplemental Agreement No. 1 to Fiscal Agent Agreement dated as of February 1, 2024 (together, the “Fiscal Agent Agreement”) by and between the Authority and U.S. Bank Trust Company, National Association, as successor fiscal agent (the “Fiscal Agent”).

The Authority covenants and agrees as follows:

Section 1. Purpose of the Disclosure Agreement. This Disclosure Agreement is being executed and delivered by the Authority for the benefit of the holders and beneficial owners of the Bonds and in order to assist the Participating Underwriter in complying with the Rule (defined below).

Section 2. Definitions. In addition to the definitions set forth above and in the Fiscal Agent Agreement, which apply to any capitalized term used in this Disclosure Agreement unless otherwise defined in this Section 2, the following capitalized terms shall have the following meanings:
“Annual Report” means any Annual Report provided by the Authority pursuant to, and as described in, Sections 3 and 4 of this Disclosure Agreement. “Annual Report Date” means the date that is nine months after the end of the Authority’s fiscal year (currently April 1 based on the Authority’s fiscal year end of June 30). “Dissemination Agent” means Goodwin Consulting Group, Inc., or any successor Dissemination Agent designated in writing by the Authority and which has filed with the Authority a written acceptance of such designation.
“Listed Events” means any of the events listed in Section 5(a) of this Disclosure Agreement.
“MSRB” means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule, or any other repository of disclosure information that may be designated by the Securities and Exchange Commission as such for purposes of the Rule in the future. “Official Statement” means the final official statement executed by the Authority in connection with the issuance of the Bonds.
“Participating Underwriter” shall mean any of the original underwriters of the Bonds. “Rule” means Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as it may be amended from time to time.

7.1.c
Packet Pg. 228 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax D-2
Section 3. Provision of Annual Reports.
(a) The Authority shall, or shall cause the Dissemination Agent to, not later than the Annual Report Date, commencing April 1, 2025, with the report for the 2023-24 fiscal year, provide to the MSRB, in an electronic format as prescribed by the MSRB, an Annual Report that is consistent with the requirements of Section 4 of this Disclosure Agreement. Not later than 15 Business Days prior to the Annual Report Date, the Authority shall provide the Annual Report to the Dissemination Agent (if other than the Authority). If by 15 Business Days prior to the Annual Report Date the Dissemination Agent (if other than the Authority) has not received a copy of the Annual Report, the Dissemination Agent shall contact the Authority to determine if the Authority is in compliance with the previous sentence. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Agreement; provided that the audited financial statements of the Authority may be submitted separately from the balance of the Annual Report, and later than the Annual Report Date, if not available by that date. If the Authority’s fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(c). The Authority shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by the Authority hereunder. (b) If the Authority does not provide (or cause the Dissemination Agent to provide) an Annual Report by the Annual Report Date, the Authority shall provide (or cause the Dissemination Agent to provide) to the MSRB, in an electronic format as prescribed by the MSRB, a notice in the form required by the MSRB.
(c) With respect to each Annual Report, the Dissemination Agent shall:
(i) determine prior to each Annual Report Date the then-applicable rules and electronic format prescribed by the MSRB for the filing of annual continuing disclosure reports; and
(ii) if the Dissemination Agent is other than the Authority , file a report with the Authority certifying that the Annual Report has been provided pursuant to this Disclosure Agreement, and stating the date it was provided.

Section 4. Content of Annual Reports. The Authority’s Annual Report shall contain or incorporate by reference the following:
(a) The Authority’s audited financial statements prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the Authority’s audited financial statements are not available by the Annual Report Date, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available.
(b) The following information:
(i) Principal amount of all outstanding bonds of the District.

7.1.c
Packet Pg. 229 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax D-3
(ii) Balance in the Improvement Fund.
(iii) Balance in debt service reserve fund, and statement of the reserve fund requirement. Statement of projected reserve fund draw, if any. (iv) Balance in other funds and accounts held by Issuer or fiscal agent related to the Bonds.
(v) Additional debt authorized by the Authority and payable from or secured by assessments or special taxes with respect to property within the District. (vi) The Special Tax levy, the delinquency rate, total amount of delinquencies, number of parcels delinquent in payment for the five most recent fiscal years. (vii) Notwithstanding the June 30th reporting date for the Annual Report, the following information shall be reported as of the last day of the month immediately preceding the date of the Annual Report rather than as of June 30th. Identity of each delinquent taxpayer responsible for 5 percent or more of total special tax/assessment levied, and the following information: assessor parcel number, assessed value of applicable properties, amount of Special Tax levied, amount delinquent by parcel number and status of foreclosure proceedings. If any foreclosure has been completed, summary of results of foreclosure sales or transfers.
(viii) Most recently available total assessed value of all parcels subject to the special tax or assessment.
(ix) List of landowners and assessor’s parcel number of parcels subject to 20 percent or more of the Special Tax levy including the following information: development status to the extent shown in Authority records, land use classification, assessed value (land and improvements).
(c) In addition to any of the information expressly required to be provided under this Disclosure Agreement, the Authority shall provide such further material information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading.
(d) Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the Authority or related public entities, which are available to the public on the MSRB’s Internet web site or filed with the Securities and Exchange Commission. The Authority shall clearly identify each such other document so included by reference.

Section 5. Reporting of Significant Events.
(a) The Authority shall give, or cause to be given, notice of the occurrence of any of the following Listed Events with respect to the Bonds:
(1) Principal and interest payment delinquencies.
(2) Non-payment related defaults, if material.

7.1.c
Packet Pg. 230 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax D-4
(3) Unscheduled draws on debt service reserves reflecting financial difficulties.
(4) Unscheduled draws on credit enhancements reflecting financial difficulties.
(5) Substitution of credit or liquidity providers, or their failure to perform. (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security.
(7) Modifications to rights of security holders, if material. (8) Bond calls, if material, and tender offers.
(9) Defeasances.
(10) Release, substitution, or sale of property securing repayment of the securities, if material.
(11) Rating changes.
(12) Bankruptcy, insolvency, receivership or similar event of the City or other obligated person.
(13) The consummation of a merger, consolidation, or acquisition involving the Authority or an obligated person, or the sale of all or substantially all of the assets of the Authority or an obligated person (other than in the ordinary course of business), the entry into a definitive agreement to undertake such an action, or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material. (14) Appointment of a successor or additional trustee or the change of name of a trustee, if material.
(15) Incurrence of a financial obligation of the Authority, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the Authority, any of which affect security holders, if material (for the definition of “financial obligation,” see clause (e) below).
(16) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the Authority, any of which reflect financial difficulties (for the definition of “financial obligation,” see clause (e) below).
(b) Whenever the Authority obtains knowledge of the occurrence of a Listed Event, the Authority shall, or shall cause the Dissemination Agent (if not the Authority) to, file a notice

7.1.c
Packet Pg. 231 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax D-5
of such occurrence with the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the Listed Event.

Notwithstanding the foregoing, notice of Listed Events described in subsections (a)(8) and (9) above need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to holders of affected Bond holders. (c) The Authority acknowledges that the events described in subparagraphs (a)(2), (a)(7), (a)(8) (if the event is a Bond call), (a)(10), (a)(13), (a)(14) and (a)(15) of this Section 5 contain the qualifier “if material” and that subparagraph (a)(6) also contains the qualifier “material” with respect to certain notices, determinations or other events affecting the tax status of the Bonds. The Authority shall cause a notice to be filed as set forth in paragraph (b) above with respect to any such event only to the extent that it determines the event’s occurrence is material for purposes of U.S. federal securities law. Whenever the Authority obtains knowledge of the occurrence of any of these Listed Events, the Authority will as soon as possible determine if such event would be material under applicable federal securities law. If such event is determined to be material, the Authority will cause a notice to be filed as set forth in paragraph (b) above.
(d) For purposes of this Disclosure Agreement, any event described in paragraph (a)(12) above is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the Authority in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the Authority, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the Authority. (e) For purposes of Section 5(a)(15) and 5(a)(16), “financial obligation” means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term financial obligation shall not include municipal securities as to which a final official statement has been provided to the Municipal Securities Rulemaking Board consistent with the Rule.

Section 6. Identifying Information for Filings with the MSRB. All documents provided to the MSRB pursuant to this Disclosure Agreement shall be accompanied by identifying information as prescribed by the MSRB.

Section 7. Termination of Reporting Obligation. The Authority’s obligations under this Disclosure Agreement shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the Authority shall give notice of such termination in the same manner as for a Listed Event under Section 5(c).

Section 8. Dissemination Agent. The Authority may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Agreement, and may discharge any Dissemination Agent, with or without appointing a successor Dissemination Agent. Any Dissemination Agent may resign by providing 30 days’ written notice to the Authority.

7.1.c
Packet Pg. 232 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax D-6
Section 9. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Agreement, the Authority may amend this Disclosure Agreement, and any provision of this Disclosure Agreement may be waived, provided that the following conditions are satisfied:
(a) if the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Bonds, or type of business conducted; (b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) the proposed amendment or waiver either (i) is approved by holders of the Bonds in the manner provided in the Fiscal Agent Agreement for amendments to the Fiscal Agent Agreement with the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Bonds.

If the annual financial information or operating data to be provided in the Annual Report is amended pursuant to the provisions hereof, the first Annual Report filed pursuant hereto containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided.

If an amendment is made to this Disclosure Agreement modifying the accounting principles to be followed in preparing financial statements, the Annual Report for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information, in order to provide information to investors to enable them to evaluate the ability of the Authority to meet its obligations. To the extent reasonably feasible, the comparison shall be quantitative.

A notice of any amendment made pursuant to this Section 9 shall be filed in the same manner as for a Listed Event under Section 5(b).

Section 10. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent the Authority from disseminating any other information, using the means of dissemination set forth in this Disclosure Agreement or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Agreement. If the Authority chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Agreement, the Authority shall have no obligation under this Disclosure Agreement to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.

7.1.c
Packet Pg. 233 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax D-7
Section 11. Default. If the Authority fails to comply with any provision of this Disclosure Agreement, the Participating Underwriter or any holder or beneficial owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Authority to comply with its obligations under this Disclosure Agreement. A default under this Disclosure Agreement shall not be deemed an Event of Default under the Fiscal Agent Agreement, and the sole remedy under this Disclosure Agreement in the event of any failure of the Authority to comply with this Disclosure Agreement shall be an action to compel performance.

Section 12. Duties, Immunities and Liabilities of Dissemination Agent. (a) The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Agreement, and the Authority agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. The Dissemination Agent shall have no duty or obligation to review any information provided to it by the Authority hereunder, and shall not be deemed to be acting in any fiduciary capacity for the Authority, the Bond holders or any other party. The obligations of the Authority under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds.
(b) The Dissemination Agent shall be paid compensation by the Authority for its services provided hereunder in accordance with its schedule of fees as amended from time to time, and shall be reimbursed for all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder.

Section 13. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the Authority, the Dissemination Agent, the Participating Underwriter and the holders and beneficial owners from time to time of the Bonds, and shall create no rights in any other person or entity.

Section 14. Counterparts. This Disclosure Agreement may be executed in several counterparts, each of which shall be regarded as an original, and all of which shall constitute one and the same instrument.

7.1.c
Packet Pg. 234 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax D-8
IN WITNESS WHEREOF, the parties hereto have executed this Disclosure Certificate as of the date first above written.

WEST PATTERSON FINANCING
AUTHORITY, for and on behalf of West
Patterson Financing Authority Community
Facilities District No. 2018-1 (Villages of
Patterson)
By:

Authorized Officer
GOODWIN CONSULTING GROUP, INC.,
as Dissemination Agent
By:

Authorized Officer

7.1.c
Packet Pg. 235 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax E-1

APPENDIX E

FORM OF OPINION OF BOND COUNSEL
________________, 2024
Board of Directors
West Patterson Financing Authority
1 Plaza
Patterson, California 95363
OPINION: $____________ West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson) Special Tax Bonds, Series 2024 Members of the Board:

We have acted as bond counsel to the West Patterson Financing Authority (the “Authority”) in connection with the issuance by the Authority of its $____________ West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson) Special Tax Bonds, Series 2024 (the “Bonds”), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, constituting Section 53311, et seq. of the California Government Code (the “Act”) and a Fiscal Agent Agreement dated as of October 1, 2021, as supplemented and amended by a Supplemental Agreement No. 1 to Fiscal Agent Agreement dated as of February 1, 2024 (together, the “Fiscal Agent Agreement”) by and between the Authority, for and on behalf of the West Patterson Financing Authority Community Facilities District No. 2018- 1 (Villages of Patterson), and U.S. Bank Trust Company, National Association, as successor fiscal agent. We have examined the law and such certified proceedings and other papers as we deem necessary to render this opinion.

As to questions of fact material to our opinion, we have relied upon representations of the Authority contained in the Fiscal Agent Agreement, and in the certified proceedings and other certifications of public officials furnished to us, without undertaking to verify the same by independent investigation.

Based upon the foregoing, we are of the opinion, under existing law, as follows:

1. The Authority is duly created and validly existing as a public body, corporate and politic, with the power to adopt the resolution authorizing the issuance of the Bonds (the “Resolution”), enter into the Fiscal Agent Agreement and perform the agreements on its part contained therein, and issue the Bonds.

2. The Bonds have been duly authorized, executed and delivered by the Authority and are valid and binding limited obligations of the Authority, payable solely from the sources provided therefor in the Fiscal Agent Agreement.

7.1.c
Packet Pg. 236 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax E-2

3. The Fiscal Agent Agreement has been duly entered into by the Authority and constitutes a valid and binding obligation of the Authority enforceable upon the Authority.

4. Pursuant to the Act, the Fiscal Agent Agreement creates a valid lien on the funds pledged by the Fiscal Agent Agreement.

3. The interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax. The opinions set forth in the preceding sentence are subject to the condition that the Authority comply with all requirements of the Internal Revenue Code of 1986 that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes. The Authority has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes to be retroactive to the date of issuance of the Bonds.

6. The interest on the Bonds is exempt from personal income taxation imposed by the State of California.

Interest on the Bonds may be subject to the corporate alternative minimum tax. We express no opinion regarding other federal tax consequences arising with respect to the ownership, sale or disposition of the Bonds, or the amount, accrual or receipt of interest on the Bonds.

The rights of the owners of the Bonds and the enforceability of the Bonds, the Resolution and the Fiscal Agent Agreement may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights generally, and by equitable principles, whether considered at law or in equity.

This opinion is given as of the date hereof, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention, or any changes in law that may hereafter occur. Moreover, our opinions are not a guarantee of a particular result, and are not binding on the Internal Revenue Service or any court; rather, our opinions represent our legal judgment based upon our review of existing law that we deem relevant to such opinions and in reliance upon the representations and covenants referenced above. Our engagement with respect to this matter has terminated as of the date hereof.

Respectfully submitted,
A Professional Law Corporation

7.1.c
Packet Pg. 237 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax F-1

APPENDIX F

DTC AND THE BOOK-ENTRY SYSTEM
Book-Entry System
DTC will act as securities depository for the Bonds. The Bonds will be issued as fullyregistered bonds registered in the name of Cede & Co. (DTC’s partnership nominee). One fully-registered Bond will be issued for each maturity of the Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds securities that its participants (the “Participants”) deposit with DTC. DTC also facilitates the settlement among Participants of securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book-entry changes in Participants’ accounts, thereby eliminating the need for physical movement of securities certificates. “Direct Participants” include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the American Stock Exchange, Inc. and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as securities brokers and dealers, banks, and trust companies that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). The Rules applicable to DTC and its Participants are on file with the Securities and Exchange Commission.

Purchases of the Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction.

Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except in the event that use of the book-entry system for the Bonds is discontinued. To facilitate subsequent transfers, all Bonds deposited by Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co. The deposit of Bonds with DTC and their registration in the name of Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such securities are credited, which may or may not be the Beneficial Owners. The Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.

Redemption notices shall be sent to Cede & Co. If less than all of the bonds within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of

7.1.c
Packet Pg. 238 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax F-2
each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co. will consent or vote with respect to the Bonds. Under its usual procedures, DTC mails an Omnibus Proxy to an issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).

Principal, mandatory redemption and interest payments on the Bonds will be made to DTC. DTC’s practice is to credit Direct Participants’ accounts on payment dates in accordance with their respective holdings shown on DTC’s records unless DTC has reason to believe that it will not receive payment on the date payable. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, the Fiscal Agent or the Authority, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal and interest to DTC is the responsibility of the Authority or the Fiscal Agent, disbursement of such payments to Direct Participants shall be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall be responsibility of Direct and Indirect Participants.

The Authority cannot and does not give any assurances that DTC, DTC Participants or others will distribute payments of principal, interest or premium with respect to the Bonds paid to DTC or its nominee as the registered owner, or will distribute any redemption notices or other notices, to the Beneficial Owners, or that they will do so on a timely basis or will serve and act in the manner described in this Official Statement. The Authority is not responsible or liable for the failure of DTC or any DTC Participant to make any payment or give any notice to a Beneficial Owner with respect to the Bonds or an error or delay relating thereto.

The foregoing description of the procedures and record-keeping with respect to beneficial ownership interests in the Bonds, payment of principal, interest and other payments on the Bonds to DTC Participants or Beneficial Owners, confirmation and transfer of beneficial ownership interests in such Bonds and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC.

Accordingly, no representations can be made concerning these matters and neither the DTC Participants nor the Beneficial Owners should rely on the foregoing information with respect to such matters, but should instead confirm the same with DTC or the DTC Participants, as the case may be.

Discontinuance of Book-Entry System
DTC may discontinue providing its services with respect to the Bonds at any time by giving notice to the Fiscal Agent and discharging its responsibilities with respect thereto under applicable law or the Authority may terminate participation in the system of book-entry transfers through DTC or any other securities depository at any time. In the event that the book-entry system is discontinued, the Authority will execute, and the Fiscal Agent will authenticate and make available for delivery, replacement Bonds in the form of registered bonds. In addition, the principal of and redemption premium, if any, on the Bonds will be payable as set forth in the Fiscal Agent Agreement and summarized in the Official Statement under the caption “THE BONDS – Description of the Bonds.” Bonds will be transferable and exchangeable on the terms and conditions provided in the Fiscal Agent Agreement and summarized in the Official Statement under the caption “THE BONDS – Transfer or Exchange of Bonds.”

7.1.c
Packet Pg. 239 Attachment: 3 WPFA POS 2023 CFD 2018-1 Villages of Patterson (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax

BOND PURCHASE AGREEMENT
$[PAR]

WEST PATTERSON FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 2018-1
(VILLAGES OF PATTERSON)

SPECIAL TAX BONDS
SERIES 2024
[_________], 2024
West Patterson Financing Authority
1 Plaza
P.O. Box 667
Patterson, California 95363
Ladies and Gentlemen:

The undersigned, Hilltop Securities Inc. (the “Underwriter”) offers to enter into the following agreement (this “Bond Purchase Agreement”) with the West Patterson Financing Authority (the “Authority”) acting for and on behalf of the West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson) (the “Community Facilities District”), which, upon the acceptance by the Authority of this offer, will be binding upon the Authority and the Underwriter. This offer is made subject to the Authority’s written acceptance hereof on or before 11:59 p.m. Pacific time, on the date hereof, and, if not so accepted, will be subject to withdrawal by the Underwriter upon written notice delivered to the Authority at any time prior to the acceptance hereof by the Authority. Terms not otherwise defined in this Bond Purchase Agreement shall have the same meanings set forth in the Fiscal Agent Agreement (as defined herein) or in the Official Statement (as defined herein).

1. Purchase and Sale of the Bonds. Subject to the terms and conditions and in reliance upon the representations and agreements set forth herein, the Underwriter hereby agrees to purchase from the Authority, and the Authority hereby agrees to sell and deliver to the Underwriter, all, but not less than all, of the West Patterson Financing Authority Community Facilities District No. 2018- 1 (Villages of Patterson) Special Tax Bonds, Series 2024 (the “Bonds”).

The principal amount of the Bonds to be issued, the dated date therefor, the maturities, redemption provisions and interest rates per annum are set forth in Exhibit A hereto and as further described in the Official Statement. The Bonds shall be as described in, and shall be issued and secured under and pursuant to the provisions of a Fiscal Agent Agreement dated as of October 1, 2021, as supplemented and amended by Supplemental Agreement No. 1 to Fiscal Agent Agreement dated as of January 1, 2024 (together, the “Fiscal Agent Agreement”) by and between the Authority and U.S. Bank Trust Company, National Association, as successor fiscal agent (the “Fiscal Agent”).

The Bonds are being issued pursuant to the Fiscal Agent Agreement and the Mello-Roos Community Facilities Act of 1982, as amended, being California Government Code Section 53311, et seq. (the “Act”).

7.1.d
Packet Pg. 240 Attachment: 4 BPA - West Patterson 2024 Bonds (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax Bonds) 2 The Underwriter has agreed to purchase all (but not less than all) of the Bonds from the Authority at a purchase price of $[__________] (being 100% of the aggregate principal amount thereof, [plus/minus] [a/an] [net] original issue [premium/discount] of $[______] and less an Underwriter’s discount of $[_________]).

The Bonds are being issued to (i) construct and acquire certain public facilities of benefit for the Community Facilities District, (ii) fund a reserve fund for the Bonds, and (iii) pay costs of issuing the Bonds. The Bonds are payable from the proceeds of an annual Special Tax levied on property located within the Community Facilities District, and from certain funds pledged under the Fiscal Agent Agreement. The Bonds are being issued on a parity with the West Patterson Financing Authority Community Facilities District No. 2018-1 (Villages of Patterson) Special Tax Bonds, Series 2021 (the “2021 Bonds”).

2. Public Offering. The Underwriter agrees to make a bona fide public offering of all of the Bonds at a price not to exceed the public offering price set forth on the inside cover of the Official Statement and as set forth in Exhibit A. The Underwriter may offer and sell Bonds to certain dealers (including dealers depositing Bonds into investment trusts) and others at prices lower than the public offering price stated on the cover of the Official Statement. The Underwriter shall indemnify and hold harmless the Authority and its members, officers, directors, employees, agents and attorneys against any and all claims, damages, liabilities, costs and expenses (including fees and disbursements of counsel) incurred by them or any of them, which arise out of a breach by the Underwriter of the representations and warranties contained in this paragraph.

The Underwriter has been duly authorized to execute this Bond Purchase Agreement and to act hereunder. Inasmuch as the purchase and sale of the Bonds represents a negotiated transaction, the Authority acknowledges and agrees that (i) the transaction contemplated by this Bond Purchase Agreement is an arm’s length, commercial transaction between the Authority and the Underwriter in which the Underwriter is acting solely as a principal and is not acting as a municipal advisor, financial advisor or fiduciary to the Authority; (ii) the Underwriter has not assumed any advisory or fiduciary responsibility to the Authority with respect to the transaction contemplated hereby and the discussions, undertakings and procedures leading thereto (irrespective of whether the Underwriter has provided other services or is currently providing other services to the Authority on other matters); (iii) the Underwriter is acting solely in its capacity as Underwriter for its own account; (iv) the only contractual obligations the Underwriter has to the Authority with respect to the transaction contemplated hereby expressly are set forth in this Bond Purchase Agreement; (v) the Underwriter has financial and other interests that differ from those of the Authority; and (vi) the Authority has consulted its own legal, accounting, tax, financial and other advisors, as applicable, to the extent it has deemed appropriate. Nothing in the foregoing paragraph is intended to limit the Underwriter’s obligations of fair dealing under MSRB Rule G-17 of the MSRB.

3. The Official Statement.
(a) The Authority hereby ratifies, confirms and approves of the use and distribution by the Underwriter prior to the date hereof of the preliminary official statement relating to the Bonds, dated January [__], 2024 (including the cover page and all appendices thereto and as supplemented, if any, the “Preliminary Official Statement”). The Authority hereby confirms that the Authority has deemed final the Preliminary Official Statement for purposes of Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 (“Rule 15c2-12”). The Authority hereby agrees to deliver or cause to be delivered to the Underwriter, within seven (7) business days of the date hereof, copies of

7.1.d
Packet Pg. 241 Attachment: 4 BPA - West Patterson 2024 Bonds (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax Bonds) 3 the final official statement, dated the date hereof, relating to the Bonds (including all information previously permitted to have been omitted by Rule 15c2-12 and any amendments or supplements as have been approved by the Authority and the Underwriter, the “Official Statement”) in such quantity as the Underwriter shall request in order to permit the Underwriter to comply with Rule 15c2-12. The Authority hereby approves of the use and distribution by the Underwriter of the Official Statement in connection with the offer and sale of the Bonds. (b) The Underwriter hereby agrees to file the Official Statement with the MSRB.

4. Representations and Agreements of the Authority. The Authority hereby represents to and agrees with the Underwriter that:
(a) The Authority is duly organized and validly existing as a joint powers authority under the laws of the State of California and has duly authorized the formation of the Community Facilities District pursuant to the Resolution of Formation (the “Resolution of Formation”) and the Act and the Board of Directors of the Authority (the “Board of Directors”), acting as the legislative body of the Community Facilities District, has duly adopted the District Resolutions (defined herein) and has caused to be recorded in the real property records of the County of Stanislaus a Notice of Special Tax Lien for the Community Facilities District (the “Notice of Special Tax Lien”) (such District Resolutions and Notice of Special Tax Lien being collectively referred to herein as the “Formation Documents”) and each of the Formation Documents remains in full force and effect as of the date hereof and the Authority has full power and authority to adopt on January [__], 2024 its resolution authorizing the issuance of the Bonds (the “Resolution” and together with the “Resolution of Formation” the “District Resolutions”) and to enter into and to perform its obligations under the Fiscal Agent Agreement, the Continuing Disclosure Agreement and this Bond Purchase Agreement (collectively, the “Authority Documents”); and when executed and delivered by the respective parties thereto, the Authority Documents will constitute the legal, valid and binding obligations of the Authority enforceable against the Authority in accordance with their respective terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, arrangement, fraudulent conveyance, moratorium and other laws relating to or affecting creditors' rights, to the application of equitable principles, to the exercise of judicial discretion in appropriate cases and to the limitations on legal remedies against joint powers agencies in the State of California; (b) By official action of the Authority prior to or concurrently with the acceptance hereof, the Authority has approved and authorized the distribution of the Preliminary Official Statement and the Official Statement and authorized and approved the execution and delivery of the Authority Documents and the consummation by the Authority of the transactions contemplated thereby;
(c) To the knowledge of the Authority, there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, governmental agency, public board or body pending against the Authority seeking to restrain or enjoin the sale or issuance of the Bonds, or in any way contesting or affecting any proceedings of the Authority taken concerning the sale thereof, the pledge or application of any moneys or security provided for the payment of the Bonds, in any way contesting the validity or enforceability of the Authority Documents or contesting in any way the completeness or accuracy of the Preliminary Official Statement or the Official Statement or the existence or powers of the Authority relating to the sale of the Bonds;

7.1.d
Packet Pg. 242 Attachment: 4 BPA - West Patterson 2024 Bonds (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax Bonds) 4 (d) To the knowledge of the Authority, the statements and information relating to the Authority and the Community Facilities District contained in the Preliminary Official Statement, as of the date thereof, did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading in any material respect; (e) To the knowledge of the Authority, the statements and information relating to the Authority and the Community Facilities District contained in the Official Statement are true and correct in all material respects, and the information relating to the Authority and the Community Facilities District contained in the Official Statement does not contain an untrue statement of a material fact or omit any statement or information relating to the Authority and the Community Facilities District which is necessary to make such statements and information therein, in the light of the circumstances under which they were made, not misleading in any material respect; (f) The Special Tax has been duly and lawfully authorized and may be levied under the Act, the State Constitution and the applicable laws of the State; (g) The Authority will furnish such information, execute such instruments and take such other action in cooperation with the Underwriter, at the expense of the Underwriter as the Underwriter may reasonably request in endeavoring (i) to qualify the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of such states and other jurisdictions of the United States as the Underwriter may designate and (ii) to determine the eligibility of the Bonds for investment under the laws of such states and other jurisdictions, and will use its best efforts to continue such qualification in effect so long as required for distribution of the Bonds; provided, however, that in no event shall the Authority be required to take any action which would subject it to general or unlimited service of process in any jurisdiction in which it is not now so subject; (h) The Fiscal Agent Agreement creates a valid pledge of the Special Tax Revenues and the moneys in the Special Tax Fund, the Bond Fund and the Reserve Fund and any accounts therein established pursuant to the Fiscal Agent Agreement, including the investments thereof, subject in all cases to the provisions of the Fiscal Agent Agreement permitting the application thereof for the purposes and on the terms and conditions set forth therein; (i) To the knowledge of the Authority, the execution and delivery by the Authority of the Authority Documents and compliance with the provisions on the Authority's part contained therein will not conflict with or constitute a material breach of or default under any law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the Authority is a party or is otherwise subject, nor will any such execution, delivery, adoption or compliance result in the creation or imposition of any lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the properties or assets of the Authority under the terms of any such law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument, except as provided by the Authority Documents;
(j) If before the earlier of the date 25 days from the “end of the underwriting period” (as defined in Rule 15c2-12) or the date all of the Bonds are sold (which the Authority may assume is the Closing Date unless otherwise informed in writing by the Underwriter), an event occurs which, in the reasonable opinion of the Underwriter or its counsel, might or would cause the information contained in the Official Statement as then supplemented or amended, to contain an untrue statement of a

7.1.d
Packet Pg. 243 Attachment: 4 BPA - West Patterson 2024 Bonds (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax Bonds) 5 material fact or to omit to state a material fact necessary to make such information therein, in the light of the circumstances under which it was presented, not misleading, the Authority, if requested by the Underwriter, will cooperate in amending or supplementing the Official Statement in a form and in a manner approved by the Underwriter;
(k) During the period described in the preceding paragraph, (i) the Authority will not participate in the issuance of any amendment of or supplement to the Official Statement to which, after being furnished with a copy, the Underwriter shall reasonably object in writing and (ii) if any event relating to or affecting the Authority shall occur as a result of which it is necessary, in the opinion of counsel for the Underwriter, to amend or supplement the Official Statement in order to make the Official Statement not misleading in the light of the circumstances existing at the time it is delivered to a purchaser of the Bonds, the Authority will cooperate with the Underwriter to prepare and furnish to the Underwriter a reasonable number of copies of an amendment of or supplement to the Official Statement (in form and substance satisfactory to counsel for the Underwriter) which will amend or supplement the Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances existing at the time the Official Statement is delivered to a purchaser of the Bonds, not misleading;
(l) Based on a review of its prior undertakings, and except as otherwise disclosed in the Official Statement, within the last five years, the Authority has not failed to comply in all material respects with any reporting obligation that it has undertaken under Rule 15c2-12 for any indebtedness issued by the Authority; and
(m) The execution and delivery of this Bond Purchase Agreement by the Authority shall constitute a representation by the Authority to the Underwriter that the representations and agreements contained in this Section are true as of the date hereof; provided, however, that as to all matters of law the Authority is relying on the advice of bond counsel to the Authority; and provided further, that no member, director, officer, agent or employee of the Authority shall be individually liable for the breach of any representation, warranty or agreement contained herein.

5. Closing. At 8:00 a.m., California time, on _______, 2024, (the “Closing Date”) or at such other time and date as shall have been mutually agreed upon by the Authority and the Underwriter (the “Closing”), the Authority will, subject to the terms and conditions hereof, deliver to the Underwriter the Bonds in definitive fully registered form, bearing CUSIP numbers without coupons, with one Bond for each maturity of the Bonds, registered in the name of Cede & Co., as nominee of DTC, and subject to the terms and conditions hereof and as provided in the Fiscal Agent Agreement, the Underwriter will accept such delivery and pay the purchase price of the Bonds by wire transfer to the Fiscal Agent payable in immediately available Federal funds. The Bonds shall be made available for inspection by the Underwriter at least one business day before the Closing.

6. Closing Conditions. The Underwriter has entered into this Bond Purchase Agreement in reliance upon the representations and agreements of the Authority contained herein, and in reliance upon the representations, warranties and agreements to be contained in the documents and instruments to be delivered at the Closing and upon the performance by the Authority of its obligations hereunder, both as of the date hereof and as of the date of the Closing. Accordingly, the Underwriter’s obligations under this Bond Purchase Agreement to purchase, to accept delivery of and to pay for the Bonds shall be conditioned upon the performance by the Authority of its obligations to be performed hereunder and under such documents and instruments at or prior to the

7.1.d
Packet Pg. 244 Attachment: 4 BPA - West Patterson 2024 Bonds (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax Bonds) 6 Closing, and shall also be subject to the following additional conditions, including the delivery by the Authority of such documents as are enumerated herein, in form and substance reasonably satisfactory to the Underwriter:
(a) The Authority shall be in compliance with each of the agreements made by it in this Bond Purchase Agreement (unless such agreements are waived by the Underwriter); and there shall not have occurred an adverse change in the financial position, results of operations or financial condition of the Authority or the Community Facilities District that materially adversely affects the ability of the Authority to levy the Special Taxes, to pay principal and interest on the Bonds when due or otherwise perform any of its obligations under the Fiscal Agent Agreement; (b) The Authority Documents shall be in full force and effect, and shall not have been amended, modified or supplemented in any material respect from the forms of such documents which have been provided to the Underwriter as of the date hereof (except as may be agreed to by the Underwriter); and the Authority shall perform or shall have performed its obligations required under or specified in this Bond Purchase Agreement to be performed at or prior to the Closing; (c) At the time of the Closing, the Official Statement (as amended and supplemented) shall be true and correct in all material respects, and shall not contain any untrue statement of a material fact or omit any statement or information necessary to make the statements therein, in the light of circumstances under which they were made, not misleading; (d) Except as disclosed in the Official Statement, no decision, ruling or finding shall have been entered by any court or governmental entity since the date of this Bond Purchase Agreement (and not reversed on appeal or otherwise set aside) which in the reasonable opinion of the Underwriter materially adversely affects the market for the Bonds; (e) (i) No default by the Authority shall have occurred and be continuing in the payment of the principal of or premium, if any, or interest on any bond, note or other evidence of indebtedness issued by the Authority, and (ii) no bankruptcy, insolvency or other similar proceeding in respect of the Authority shall be pending nor to the knowledge of the Authority, contemplated; (f) At or prior to the Closing, the Underwriter shall receive the following documents:
(1) Bond Counsel Opinion. The opinion of Jones Hall, A Professional Law Corporation (“Bond Counsel”), dated the Closing Date, in substantially the form included in the Official Statement as Appendix E, addressed to the Authority. (2) Supplemental Opinion. A supplemental opinion of Bond Counsel, substantially in the form attached hereto as Exhibit B. (3) Letter of Disclosure Counsel. A letter, dated the Closing Date and addressed to the Underwriter and the Authority, of Jones Hall, A Professional Law Corporation, acting as Disclosure Counsel, to the effect that no facts have come to the attention of the attorneys in such firm rending legal services in connection with the Bonds that cause them to believe that the Official Statement, as of its date or as of the date hereof, contained or contains any untrue statement of a material fact or omitted or omits to state any material fact necessary to make the statement made therein, in light of the circumstances under which they were made, not misleading.

7.1.d
Packet Pg. 245 Attachment: 4 BPA - West Patterson 2024 Bonds (WPFA Resolution No. 2024-01 Authorizing the Issuance of Special Tax Bonds) 7 (4) Opinion of Authority Counsel. An opinion of counsel to the Authority, in form and substance satisfactory to the Underwriter dated the Closing Date, addressed to the Underwriter, substantially to the effect that:
(i) to the best of their knowledge and except as disclosed in the Official Statement, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body is pending with respect to which the Authority has been served with process is otherwise known to be threatened which would materially adversely affect the ability of the Authority to perform its obligations under the Bonds, the Formation Documents or the Authority Documents, or seeking to restrain or to enjoin the issuance, sale or delivery of the Bonds or the application of the proceeds thereof in accordance with the Fiscal Agent Agreement, or the collection or application of the Special Tax to pay the principal of and interest on the Bonds, or in any way contesting or affecting the validity or enforceability of the Bonds, the Formation Documents or the Authority Documents or the accuracy of the Official Statement, or any action of the Authority contemplated by any of said documents;
(ii) the Authority is duly organized and validly existing as a joint powers authority under the laws of the State and the Community Facilities District is duly organized and validly existing as a community facilities district under the laws of the State, and the Authority has full legal right, power and authority to perform all of its obligations under the Formation Documents and the Authority Documents; (iii) the Board of Directors has duly and validly adopted the District Resolutions at meetings of the Board of Directors which were called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout and the District Resolutions are now in full force and effect; and
(iv) the Authority has duly authorized the Authority Documents and has duly authorized the preparation and delivery of the Official Statement and the Authority Documents constitute legal, valid and binding agreements of the Authority, enforceable against the Authority in accordance with their respective terms, subject to bankruptcy , insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors’ rights in general and to the application of equitable principles if equitable remedies are sought and to the limitation on legal remedies against public agencies in the State.
(5) Closing Certificate of Authority. A certificate of the Authority, dated the date of the Closing, signed on behalf of the Authority by a duly authorized representative of the Authority to the effect that, (i) the representations contained in Section 4 of this Bond Purchase Agreement are true and correct in all material respects as of the Closing Date; (ii) to the best of his or her knowledge, no event has occurred since the date of the Official Statement or the date hereof affecting such matters contained therein which should be disclosed in the Official Statement for the purposes for which it is to be used in order to make the statements and information contained in the Official Statement not misleading in any material respect; and (iii) the Authority has complied with all the agreements and satisfied all

Patterson City CouncilJanuary 16, 2024

Patterson City Council
January 16, 2024